Agenda Packet — Salinas City Council, June 11, 2024 (part 7 of 9)

WHEREAS, in 2015, improvements planned for the Sanborn Road/Elvee Drive/US 101 project would place proposed improvement inside of Lot 15 of the Ottone Business Park No. 2 subdivision; and
WHEREAS, additional right of way was acquired through Document No. 2014035018 to accommodate the roadway improvements; and
WHEREAS, the owner of Lot 15 wishes to dedicate a ten foot public utility easement to align with the adjusted right of way at the northeast corner of Work Street and Elvee Drive.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council accepts a Public Utility Easement described in the Grant Deed for a portion of Lot 15 of the “Ottone Business Park No. 2” filed for record in Volume 20 of Cities and Towns at page 28 (791 Work Street, Tract No. 1328).

PASSED AND APPROVED this 11th day of June, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Kimbley Craig, Mayor
ATTEST:

Page | 2
_________________________
Patricia M. Barajas, City Clerk

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-260, Version: 2
Mills Act Program
Adopt an Ordinance amending Chapter 3 of the Salinas Municipal Code making minor edits and updates and approve a Resolution establishing a permanent Mills Act Program for qualified historic properties.

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CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: JUNE 11, 2024
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: LISA BRINTON, DIRECTOR
THROUGH: GRANT LEONARD, PLANNING MANAGER
BY: JESSICA SHULL, ASSOCIATE PLANNER
TITLE: MILLS ACT PROGRAM
RECOMMENDED MOTION:

A motion to:

1. adopt an Ordinance amending Chapter 3 of the Salinas Municipal Code making minor edits and updates; and

2. approve a Resolution establishing a permanent Mills Act Program for qualified historic properties.

EXECUTIVE SUMMARY:

The Mills Act is an economic incentive program that grants tax savings to property owners for the restoration and preservation of qualified historic buildings. In 2016, the City of Salinas adopted a 5-year Mills Act Pilot Program, which lapsed in 2022. During the Pilot Program, three contracts (2 residential and 1 commercial) were approved by the City Council. Due to renewed interest in the Mills Act, City staff worked with the Historic Resources Board (HRB) to conduct a Mills Act Program review and prepare an updated permanent Mills Act Program. The proposed permanent program and ordinance update would maintain the program criteria from the Pilot Program, make minor edits to the ordinance, and establish improved administrative procedures.

BACKGROUND:

Discussion:

The Mills Act is an economic incentive program that fosters the preservation of residential neighborhoods and the revitalization of commercial districts. Enacted in 1972, the Mills Act allows participating local governments the authority to enter into contracts with owners of qualified Page | 2
historic properties to restore and maintain their historic properties while receiving property tax relief. The Mills Act allows local governments to design preservation programs to accommodate specific community needs and priorities. Local governments choose to adopt Mills Act Programs because they recognize the economic benefits of conserving resources and reinvestment in addition to the important role historic preservation can play in revitalizing older areas, creating cultural tourism, and retaining a sense of place and continuity with the community’s past.

On February 7, 2016, City Council Ordinance No. 2588 clarified the responsibilities of the Historic Resources Board and provided the Historic Resources Board (HRB) and City Council the authority to establish a Mills Act Program, and per Section 3-02.14 of the Salinas Municipal Code and pursuant to California Government Code, Article 12, Section 50280 (known as the Mills Act), the City Council may establish a Mills Act Program.

Under the Mills Act, property owners are required to enter a contract to receive the benefits outlined below:
 A Mills Act Contract is an agreement between the City of Salinas and an owner of an historic property as designated by the City Council or on any official federal, state or county register, for the purpose of preservation, rehabilitation, and maintenance of a historic resource. The property owner benefits from a reduction in property taxes.  The term of a Mills Act Contract is ten (10) years with one (1) additional year being added on each year’s anniversary for ten years resulting in a total of up to twenty years unless it is cancelled. The Contract, rights and obligations are binding upon all successive owners of the property during the life of the contract.
 Property owners must prepare a Maintenance Plan and submit an annual report to the Community Development Department, which specifies all work done to maintain and preserve the historic building over the year in accordance with the Maintenance Plan. All work must be done in accordance with the Secretary of Interior’s Standards for the Treatment of Historic Properties.
 The contract process is initiated by submittal of a complete application and fee to the City of Salinas Community Development Department. Staff then prepares a report for consideration by the Historic Resources Board. The HRB reviews the application materials and staff report and recommends approval, modification, or denial of the request to the City Council. The City Council takes final action on the request and either approves, modifies, or denies it.

On June 28, 2016, City Council Resolution No. 20986, provided as Attachment 5 to this staff report, established the Mills Act Program, with a five-year Pilot Program, which was to be considered for continuation in 2022 after review of the program performance between 2016 and 2022. Since the inception of the Mills Act Pilot Program, three Mills Act Contracts have been executed.

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The City reached out via email to the Monterey County Assessor’s Office for observed property tax savings of the three Mills Act Contract properties. The Monterey County Assessor’s Office provided the following for each subject property: assessed value without the Mills Act Contract, the Mills Act Contract assessed value, and the tax rates since their contract inception; the staff then calculated the monetary tax savings, provided as Attachment 4 to this staff report and summarized in the Table 1 below.

Table 1
Mills Act Contract Estimated Property Tax Savings
Address Improvements
completed consistent
with Contract
Approximate Property
Tax Savings to Date
147 Central Avenue Permit # R19-0076
(2019)
Reroof
$15,971.95
15 Los Laureles Avenue No improvements
consistent with the
contract
$34,746.24
301 Main Street Permit #: B18-0736, B19-
0361, B20-0520, B21-
0652
(2018-2022)
Various tenant
improvements including
restaurant and 50 studio
units
2023 will be the first year
of property tax savings
Analysis:

Based on information collected to date, the City currently has one fully compliant Mills Act Contract out of three. City staff is working with property owners to determine what work has been completed consistent with their Maintenance Plan to bring each Mills Act Contract into compliance.

Under the Mills Act, jurisdictions can establish their own criteria and determine how many contracts they will allow in their jurisdiction. The City of Salinas’s Mills Act Pilot Program contained the following criteria:

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 The maximum amount of City property tax reduction allowed is $100,000/year. o If the number of applicants exceeded the tax reduction limit, eligible applications are selected based on the order they are received.  Applications are only accepted during the months of May, June, and July.  Mills Act recipients must prepare a Maintenance Plan and submit an annual report that specifies all work done to maintain and preserve the historic building over the prior year.

Based on the discussion at the December 4, 2023, Historic Resources Board meeting, staff determined that no modifications would be made to the existing Mills Act program criteria.

Proposed modifications to the program are administrative and focus on strengthening program oversight.

City staff reached out to three area school districts Alisal Union, Salinas City Elementary and Salinas Union High as a reduction in property tax has potential impact on these districts. Emails were sent to Associate Superintendents, with a follow up call, providing an opportunity to ask questions or raise concerns regarding the Mills Act Program. No comments were received from any of the school districts.

Fiscal Impact:

Property taxes equal 1% of the properties assessed value. The City of Salinas receives 6% of that 1%. The reduction in city property tax revenue resulting from a Mills Act Contract is offset by the public benefit of preservation of important historic resources. The fiscal impact of the Mills Act Program on the City is minimal. The tables above show an estimate of property taxes the City received for the 2023 tax year for the three Mills Act Pilot Program properties. Table 2 estimates what the City would have received in property taxes without a Mills Act Contract on the property.

Table 3 estimates the amount of property taxes the City of Salinas received under the Mills Act Contracts. The difference in property taxes received for this tax year was $1,466.63. 2023 Tax Year Analysis
Table 2: Tax Estimates Without Mills Act Contract
Property Address Tax Rate Pre-Mills
Act
Property Taxes Pre-Mills
Act (1%)
City of Salinas
(6%)
301 Main Street $11,568,969.00 $137,670.73 8,260.24
15 Los Laureles
Avenue
$1,178,578.00 $11,785.78 $707.14
147 Central Avenue $634,644.00 $6,346.44 $380.79
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Table 3: Tax Estimates With Mills Act Contract
Property Address Tax Rate Post Mills Act Property Taxes Post Mills Act (1%)
City of Salinas
(6%)
301 Main Street $10,340,000.00 $123,213.00 $7,392.78
15 Los Laureles
Avenue
$445,000.00 $5,059.00 $303.54
147 Central Avenue $254,000.00 $3,087.00 $185.22
Updates to Salinas Municipal Code (SMC) Chapter 3
During the Mills Act Pilot Program review staff identified multiple minor edits and updates needed to Chapter 3 of the SMC, which established the Mills Act Pilot Program. These updates included correcting section citations and removing a reference to the five-year Pilot Program. The updates are reflected in the draft Ordinance in strike through and underline (Attachment 1).

Historic Resource Board Review and Recommendation:

The Historic Resource Board reviewed the Mills Act Program at the October 4, 2023, meeting and indicated support for establishing a permanent Mills Act Program. The Historic Resources Board discussed the Mills Act Program at the December 4, 2023, meeting to provide staff additional direction on the structure of a permanent Mills Act Program. The permanent Mills Act Program was presented to the Historic Resources Board on April 8, 2024, with a unanimous vote to recommend a permanent Mills Act Program.

The Mills Act is one tool used to support the preservation of historic buildings within the City.

Staff has reviewed the Mills Act Pilot Program, best practices from many programs around the state, and updated the Pilot Program so that it can be adopted as a permanent program. A Resolution establishing a permanent Mills Act Program along with program criteria and administration is attached to this staff report. Staff recommends adoption of the Ordinance updates and approval of the Resolution to establish a permanent Mills Act Program.

CEQA CONSIDERATION:

The environmental impacts of the proposed improvements conform with the Secretary of the Interior’s Standards for Rehabilitation and have been analyzed in accordance with the California Environmental Quality Act (CEQA). Therefore, the project is categorically exempt (Class 31) from further environmental analysis per CEQA Guidelines Section 15331 (Historic Resource Restoration/Rehabilitation).

DEPARTMENT COORDINATION:

The Community Development Department’s Advanced Planning and Project Implementation (APPI) staffs the HRB and led the review of the City of Salinas’ Mills Act Program. APPI has Page | 6
coordinated with Finance, Legal, and the City Manager’s office.

STRATEGIC PLAN INITIATIVE:

While the Mills Act does not directly relate to one of the Council’s Strategic Plan Goals or Strategies, it is closely aligned with the goals of Economic Development and Environmental Sustainability. A Mills Act Program aids in the preservation of City historic resources, enhances property values and stimulates economic benefits to the public.

FISCAL AND SUSTAINABILITY IMPACT:

Establishing a permanent Mills Act Program could create a fiscal impact to the General Fund of up to a maximum reduction of $100,000 per fiscal year. Analysis of the Mills Act Pilot Program show the current fiscal impact is much less, approximately $1,400 annually. Additionally, the savings are being reinvested in the rehabilitation and maintenance of historic properties. A Mills Act Program will have a positive impact on the environment by assuring the future review, preservation, and rehabilitation historic resources in the City of Salinas.

ATTACHMENTS:
1) Draft Ordinance
2) Draft Resolution
3) Historic Resources Board Mills Act Resolution
4) Mills Act Values; City of Salinas 2023
5) City Council Resolution 20986
ORDINANCE NO. ______ (N.C.S.)
AN ORDINANCE OF THE CITY OF SALINAS AMENDING CHAPTER 2 3 OF THE

CITY OF SALINAS MUNICIPAL CODE TO ESTABLISH A MILLS ACT HISTORIC

PROPERTY TAX SAVINGS PROGRAM AND TO MAKE OTHER MINOR CHANGES

FOR CLARIFICATION
WHEREAS, the Salinas City Council has adopted General Plan, Economic Development Strategy and Vibrancy Plan documents which recommend establishment of a historic property tax savings program allowed by the State Mills Act; and WHEREAS, the City Council wishes to establish such a program in order to stimulate rehabilitation and preservation of historic resources within the downtown area and other areas of the City; and
WHEREAS, establishment of a five-year pilot program will allow the City to understand the mechanics and financial effects of such a program; and
WHEREAS, it is appropriate to make other minor change to Chapter 2 3 for clarification purposes; and
WHEREAS, it is in the interest of the health, welfare and safety of the people of the City of Salinas to establish a historic property tax savings program, and make minor changes to Chapter 2 3 for clarification purposes; and
WHEREAS, the ordinance amendment qualifies for Categorical Exemptions from the provisions of the California Environmental Quality Act (Section 15305 - Minor Alterations to Land Use Limitations and Section 15331 – Historical Resource Restoration/Rehabilitation).

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

SECTION 1: Chapter 2, Article XI, Section 2-71 Article 2, Chapter 3, Section 3-02.14. is hereby added to the Salinas Municipal Code to read as follows of the Salinas Municipal Code is hereby modified to read as follows:

Article XI, Section 2-71. Article 2, Chapter 3, Section 3-02.14. – Historic Preservation Incentive - City of Salinas Mills Act Tax Savings Program for Historic Properties Pursuant to California Government Code, Article 12, Section 50280 (known as the Mills Act), the City Council may establish a Mills Act Program providing for contractual agreement with an owner of an historic property as designated by the City Council or on any official federal, state or county register, for the purpose of preservation, rehabilitation, and maintenance of a designated historic resource. The terms of the Mills Act Agreement allow the owner to receive a reduction in property taxes in exchange for the property owner’s commitment to specific repair, rehabilitation improvements and satisfactory maintenance of the historic property. The Agreement shall include, but not be limited to, the contract provisions as required under state law, and shall extend for a minimum period of 10 years, with automatic renewal on an annual basis, until and unless a notice of non-renewal or cancellation is filed. The application process, review procedures, and required contract provisions for Mills Act Agreements shall be established by separate resolution of the City Council and shall be implemented by the Community Development Director or his/her designee.

SECTION 2: Chapter 2, Article XI, Section 2-59 Article 2, Chapter 3, Section 3-02.02.– Definitions – Subsection (d) is hereby amended to read as follows:

Historic resource" means any building, structure, sign, site, place, area, or district that is identified in the Salinas City General Plan as being on:
(1) The National Register of Historic Places;
(2) The State Historic Landmark Register;
(3) The California Register of Historic Resources; or
(4) One that has been voluntarily nominated as an historic resource by the property owner and which designation has been considered by the historic resources board and approved by the Salinas City Council.

SECTION 3: Chapter 2, Article XI, Section 2-63 Article 2, Chapter 3, Section 3-02.06. – Alteration of demolition of an historic resource – subsection (a) is hereby amended to read as follows:
(a) No person may alter or demolish an historic resource within without first obtaining a certificate of approval appropriateness as provided for in this section.

SECTION 4: Chapter 2, Article XI, Section 2-63 Article 2, Chapter 3, Section 3-02.06. – Alteration or demolition of an historic resource – subsection (c) (3) is hereby amended to read as follows:

Alterations Accompanied by Planning Entitlement. All proposed alterations that are accompanied by a request for planning entitlement shall be, in the discretion of the city planner planning manager, routed to the board planning commission for their recommendation to the board planning commission.

SECTION 5: SEVERABILITY. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held invalid by a court of competent jurisdiction, such a decision shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have passed this Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses, or phrases, be declared invalid.

SECTION 6: EFFECTIVE DATE. This Ordinance shall become effective on the thirty-first day following its adoption.

PASSED AND ADOPTED this 11
th day of June, 2024 by the following vote:

AYES:

NOES:

ABSENT:
_________________________________
Kimbley Craig, Mayor
APPROVED AS TO FORM:
_____________________________
Christopher A. Callihan, City Attorney
ATTEST:
_____________________________
Patricia M. Barajas, City Clerk

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

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SALINAS,

CALIFORNIA, ESTABLISHING THE APPLICATION PROCESS, REVIEW

PROCEDURES AND REQUIRED CONTRACT PROVISIONS FOR A PERMANENT MILLS ACT PROGRAM PURSUANT TO SALINAS MUNICIPAL CODE CHAPTER 3 ARTICLE 2, SECTION 3-02.14
WHEREAS, California Government Code section 50280, et, seq. (the Mills Act) authorizes cities to enter into contracts with the owners of qualified historical property to provide for the use, maintenance and restoration of such historical property to retain its characteristics as property of historical significance; and
WHEREAS, the City of Salinas General Plan and Zoning Code Ordinance contain policies and regulations to promote the preservation, maintenance rehabilitation, and restoration of historic properties within the City limits; and
WHEREAS, pursuant to City of Salinas Municipal Code Chapter 3, Article 2, Section 3-

02.14 has established procedures to identify and designate historic resources within the City; and WHEREAS, on February 7, 2016, City Council Ordinance No. 2588 provided the Historic Resources Board (HRB) and City Council the authority to establish a Mills Act Pilot Program, which lapsed in June 2022;
WHEREAS, and per Section 3-02.14 of the Salinas Municipal Code and pursuant to California Government Code, Article 12, Section 50280 (known as the Mills Act), the City Council may establish a permanent Mills Act Program; and
WHEREAS, the City recognizes that the reduction in property taxes provided by the Mills Act will act as a monetary incentive to acquire, designate, maintain, and rehabilitate historic property; and
WHEREAS, Mills Act preservation contract agreements will have beneficial effects on residential neighborhoods, businesses, community pride, and regional image; and WHEREAS, the proposed program is categorically exempt (Class 31) from further environmental analysis per CEQA Guidelines Section 15331 (Historic Resource Restoration/Rehabilitation); and
WHEREAS, on April 8, 2024, the Salinas Historic Resources Board held a public hearing and voted unanimously to recommend City Council approval of a permanent Mills Act Program; and
WHEREAS, on June 11, 2024, the City Council considered the resolution to establish a permanent Mills Act program; and
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Salinas as follows:

Section 1. MILLS ACT PROGRAM. The City establishes a permanent Mills Act Program for the City.

Section 2. PROPERTY TAX CONTRIBUTION LIMITATION. The City will limit Mills Act related property tax contributions by the City to $100,000/year or less. Applications will be accepted during the months of May, June, and July only. If the number of applicants exceeds the tax contribution limit, then eligible applications will be selected based upon the order by which they are received.

Section 3. CONTRACTS TO RESTRICT USE OF QUALIFIED HISTORICAL PROPERTY.

Upon the application of an owner or agent of an owner of any qualified historical property, the City Council may contract with the owner to restrict the use of the property for its preservation, restoration and rehabilitation as set forth in Section 5 to carry out the purposes of this article and of Article 1.9 (commencing with Section 439) of Chapter 3 of Part 2 of Division 1 of the Revenue and Taxation Code.

Section 4. QUALIFIED HISTORICAL PROPERTY. “Qualified historical property” for purposes of this chapter, means private owned property which is not exempt from property taxation, and which meets City of Salinas Code Chapter 3, Article 2, Section 3.

Section 5. REQUIRED CONTRACT PROVISION. Any contract entered into under this article shall contain the following provisions: (a) The term of the contract shall be for a minimum period of 10 years. (b) Where applicable, the contract shall provide the following: (1) For the preservation of the qualified historical property and, when necessary, to restore and rehabilitate the property to conform to the rules and regulations of the Office of Historic Preservation of the Department of Parks and Recreation, the United States Secretary of the Interior's Standards for Rehabilitation, and the State Historical Building Code. (2) For the periodic examinations of the interior and exterior of the premises by the assessor, the Community Development Department and the State Board of Equalization as may be necessary to determine the owner's compliance with the contract. (3) For it to be binding upon, and inure to the benefit of, all successors in interest of the owner. A successor in interest shall have the same rights and obligations under the contract as the original owner who entered into the contract. (c) The owner or agent of an owner shall provide written notice of the contract to the State Office of Historic Preservation within six months of entering into the contract.

Section 6. APPLICATION PROCEDURE. Applications to Salinas shall be initially evaluated and reviewed by the Salinas Historic Resources Board. The Historic Resources Board shall hold a public hearing on every application for a Historic Preservation Contract. The public hearing shall be scheduled for a date not less than 10 days but not more than 90 days from the date the application is filed. After the hearing, the Historic Resources Board shall recommend to the Director of Community Development that the application be denied, granted in whole or in part, or modified subject to such conditions as it deems appropriate. The Director of Community Development shall make a recommendation to the City Council which has final authority to approve or deny a contract if all of the conditions of this Resolution are met. The Director of Community Development shall be responsible for assuring performance of the Historic Property Preservation Contracts including contract administration, extension, cancellation, and enforcement.

Section 7. FEES TO BE PAID BY OWNER. As a condition of entering into the Historic Property Preservation Contracts, the property owner shall pay an application and processing fee to the City of Salinas, which is the reasonable cost of administrating the program. Said fee must be paid prior to processing the application.

Section 8. EXTENSION OR NON-RENEWAL OF CONTRACT; RECORDATION AND NOTICE OF CONTRACT. (a) Each contract shall provide that on the anniversary date of the contract or such other annual date as is specified in the contract, a year shall be added automatically to the initial term of the contract unless notice of nonrenewal is given as provided in this section.

If the property owner or the City desires in any year not to renew the contract, that party shall serve written notice of nonrenewal of the contract on the other party in advance of the annual renewal date of the contract. Unless the notice is served by the owner at least 90 days prior to the renewal date or by the City at least 60 days prior to the renewal date, one year shall automatically be added to the term of the contract. (b) Upon receipt by the owner of a notice from the City of nonrenewal, the owner may make a written protest of the notice of nonrenewal. The City may, at any time prior to the renewal date, withdraw the notice of nonrenewal. (c) If the City or the owner serves notice of intent in any year not to renew the contract, the existing contract shall remain in effect for the balance of the period remaining since the original execution or the last renewal of the contract, as the case may be. (d) The owner shall furnish the City with any information the City shall require in order to enable it to determine the eligibility of the property involved. (e) No later than 20 days after the City enters into a contract with an owner pursuant to this article, the Clerk of the City shall record with the County Recorder a copy of the contract, which shall describe the property subject thereto. From and after the time of the recordation, this contract shall impart a notice thereof to all persons as is afforded by the recording laws of this state.

Section 9. CANCELLATION OF CONTRACT FOR OWNERS’ BREACH OF CONDITIONS.

The City may cancel a contract if it determines that the owner has breached any of the conditions of the contract provided for in this article or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historical property. The City may also cancel a contract if it determines that the owner has failed to restore or rehabilitate the property in the manner specified in the contract.

Section 10. NOTICE AND HEARING BEFORE CANCELLATION OF CONTRACT. No contract shall be canceled under Section 9 until after the City has given notice of, and has held, a public hearing on the matter. Notice of the hearing shall be mailed to the last known address of each owner of the qualified historic property and shall be published pursuant to California Government Code Sections 6060 and 6061.

Section 11. CANCELLATION FEE. (a) If a contract is canceled under Section 9, the owner shall pay a cancellation fee equal to 12 1/2 percent of the current fair market value of the property, as determined by the Assessor as though the property were free of the contractual restriction. (Gov.

Code, § 50286.) (b) The cancellation fee shall be paid to the Auditor, at the time and in the manner that the county auditor shall prescribe and shall be allocated by the county auditor to each jurisdiction in the tax rate area in which the property is located in the same manner as the auditor allocates the annual tax increment in that tax rate area in that fiscal year. ( c) Notwithstanding any other provision of law, revenue received by a school district pursuant to this section shall be considered property tax revenue for the purposes of Section 42238 of the Education Code, and revenue received by a county superintendent of schools pursuant to this section shall be considered property tax revenue for the purposes of Article 3 (commencing with Section 2550) of Chapter 12 of Part 2 of Division 1 of Title 1 of the Education Code.

Section 12. ACTION TO ENFORCE CONTRACT. As an alternative to cancellation of the contract for breach of any condition, the city, or any landowner may bring any action in court necessary to enforce a contract including, but not limited to, an action to enforce the contract by specific performance or injunction.

Section 13. NULLIFICATION OF CONTRACT ON ACQUISITION OF PROPERTY BY EMINENT DOMAIN. In the event that property subject to contract under this article is acquired in whole or in part by eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain, and the acquisition is determined by the City Council to frustrate the purpose of the contract, such contract shall be canceled and no fee shall be imposed under Section

11. Such contract shall be deemed null and void for all purposes of determining the value of the property so acquired.

Section 14. RIGHTS OF CITY UPON ANNEXATION OF RESTRICTED PROPERTY. In the event that property restricted by a contract with Monterey County under this article is annexed to a city, the city shall succeed to all rights, duties, and powers of the county under such contract.

Section 15. CONSULTATION. The City Council and owners of qualified historical properties may consult with the State Historical Resources Commission for its advice and counsel on matters relevant to historical property contracts.

Section 16. HISTORIC PROPERTY PRESERVATION AGREEMENT. The Preservation Historic Preservation Agreement to be used in the Mills Act is attached as Exhibit "A." Pursuant to Salinas Municipal Code Chapter 3, Article 2, Section 3-02.14, the City Council hereby delegates to the Community Development Director or his/her designee the authority and responsibility to amend and modify the Preservation Agreement as deemed necessary and appropriate, in consultation with the City Attorney. The terms for the Preservation Agreement shall always comply with California Government Code, Article. 12, Section 50280 et seq. (known as the Mills Act) and Salinas Municipal Code Chapter 3, Article 2, Section 3-02.14. The maintenance, repair, rehabilitation, and/or restoration standards applicable to the subject property shall be set forth in the Preservation Agreement. In consideration for abiding with the terms of the Preservation Agreement, the owner of the subject property shall be entitled to quality for a reassessment of the historic property, pursuant to Chapter 3, Page 2, of Division 1 of the California Revenue and Taxations Code.

Section 17. EFFECTIVE DATE. The provisions of this resolution shall become effective concurrent with the effective date of the amendment to Salinas Municipal Code Chapter 3, Article 2, Section 3-02.14.

PASSED AND APPROVED this 11th day of June 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:
________________________________
Kimbley Craig, Mayor
ATTEST:
_____________________________
Patricia M. Barajas, City Clerk

Mills Act(2023) FBYV(2023) Mills Act(2022) FBYV(2022) Mills Act(2021) FBYV(2021) Mills Act(2020) FBYV(2020) Mills Act(2019) FBYV(2019) Mills Act(2018) FBYV(2018) 301 Main St.
(002-233-019) $10,340,000 $11,568,969
15 Los Laureles Ave.
(002-513-004) $445,000 $1,178,578 $549,000 $1,155,469 $506,000 $1,132,813 $370,260 $1,121,198 $475,000 $1,099,214 $475,000 $1,077,661 147 Central Ave.
(002-252-014) $254,000 $634,644 $338,000 $622,200 $304,000 $610,000 $249,900 $540,134 $238,000 $529,543 $238,000 $519,160

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-280, Version: 1
SB1 Road Repair and Accountability Act - FY 2024/25 Projects Approve a Resolution adopting a list of projects for Fiscal Year 2024-25 funded by SB 1, the Road Repair and Accountability Act of 2017.

City of Salinas Page 1 of 1 Printed on 6/7/2024
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CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: JUNE 11, 2024
DEPARTMENT: PUBLIC WORKS
FROM: DAVID JACOBS P.E., L.S., PUBLIC WORKS DIRECTOR
BY: VICTOR SANCHEZ, ASSISTANT ENGINEER
ADRIANA ROBLES, P.E., C.F.M., CITY ENGINEER
TITLE: SB 1 ROAD REPAIR AND ACCOUNTABILITY ACT – Fiscal Year 2024/25 PROJECTS
RECOMMENDED MOTION:

A motion to approve a resolution adopting a list of projects for Fiscal Year (FY) 2024-25 funded by SB 1, the Road Repair and Accountability Act of 2017.

EXECUTIVE SUMMARY:

Senate Bill 1, the Road Repair and Accountability Act of 2017, was signed into law on April 28, 2017. The legislative package invests $5.4 billion annually to fix roads, freeways, and bridges in communities across California and puts more dollars toward transit and safety. To continue receiving SB 1 funds in the next fiscal year, the City’s road maintenance and rehabilitation project list must be submitted to the California Transportation Commission by July 1, 2024. The proposed list reflects the City’s current transportation infrastructure priorities in FY 2024-25.

BACKGROUND:

SB 1, the Road Repair and Accountability Act of 2017 was passed by the California Legislature and signed into law by the Governor in April 2017 to address the significant transportation funding shortfalls statewide. Funding is allocated annually on a per capita basis. The revenues for cities will come out of the Road Maintenance and Rehabilitation Account (RMRA) where cities are expected to prioritize fixing their existing infrastructure first before having some additional flexibility for those funds for other transportation needs. SB 1 will provide Salinas an estimated $3.6 million for roadway repairs in FY 2024-25.

In FY 2023-24, the City’s SB 1 funds were budgeted among Citywide Striping and Signing Improvements (CIP 9081), Annual Pavement and Sidewalk Maintenance (CIP 9438), Street Preventive Maintenance Program (CIP 9981), and Williams Road Streetscape (CIP 9071).

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To continue receiving SB 1 funds in the next fiscal year, the City must submit a Council-approved resolution with the City’s road maintenance and rehabilitation project list to the California Transportation Commission (CTC) by July 1, 2024. The proposed list has been selected based on the Pavement Management Street Prioritization Policy approved by City Council on April 9, 2024.

The following list of newly proposed projects will be funded in-part or solely with FY 2024-25 Road Maintenance and Rehabilitation Account revenues:

Project Title Description Location
Estimated
Useful Life
Estimated
Schedule
2024-25 Striping
and Signing
Improvements
Striping and
Signing
maintenance at
critical locations
not scheduled for
pavement
improvements.

N Sanborn Rd (E Laurel
Dr to Fairview Ave);
Boronda Rd (N Main St
to City limits); E Blanco
Rd (Blanco Cir to Abbott
St); E Market St
(Monterey St to
Greenfield Alley);
Harkins Rd (Hansen to
City limits).
2 years for
crosswalks
and 4 years
for all other
striping on
pavement
Start
Construction
July 2024
Completion
June 2025
Pavement
Management
Pavement
rehabilitation,
striping, and
signing.

E Laurel Dr (N Main St
to Constitution Blvd); W
Laurel Dr (N Main St to
N Davis Rd); E Market
St/Sherwood
Intersection; Wiren St
(Williams Rd to N end);
Sky Pl (Alma Ave to
end); Bardin Cir; Green
St (Del Monte Ave to
Garner Ave); Acosta St
(Towt St to 2nd Ave);
Bardin Way (Bardin Cir
to Williams Rd); Cortez
St (New Deal St to end)
7-10 years Start Design
Summer 2024
Completion
Construction
Winter 2025
The following previously proposed and adopted projects may also utilize FY 2024-25 Road Maintenance and Rehabilitation Account revenues in their delivery. With the relisting of these projects in the adopted fiscal year resolution, the City is reaffirming to the public and the State, the intent to fund these projects with Road Maintenance and Rehabilitation Account revenues:

Project Title Description Location Estimated
Useful Life
Estimated
Schedule
Page | 3
Williams
Road Safe
Street
Corridor
Project
Streetscape improvements, utility
improvements, road
reconstruction, median island, and
ADA improvements.

Williams Road
(E Alisal Rd to
Freedom
Parkway)
20-25 years
Preconstruction
Design - Start April
2024
Preconstruction
Completion - June
2025
Boronda
Road
Congestion
Relief
Project –
Phase 1
Construction of a roundabout at
East Boronda Road and
McKinnon Street. Includes
pedestrian and bicyclist
improvements, median islands,
pavement rehabilitation,
landscaping, storm and sanitary
sewer improvements, striping,
and signing.

East Boronda
Road from
Dartmouth Way
to 1200 feet East
of McKinnon
Street
20-25 years
Start Construction
Summer 2024
Completion Spring
2026
The City may elect to reprioritize its project list at any time. Formal notification to the CTC of any changes to the list is not required. However, the Project Expenditure Report submitted to the CTC each year in December will provide an opportunity for the City to communicate such changes to the CTC as part of the regular reporting process and transparency.

CEQA CONSIDERATION:

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

STRATEGIC PLAN INITIATIVE:

The staff recommendation supports the Council’s Goal of Infrastructure and Environmental Sustainability as it provides funding to the City’s capital projects for improvements to existing facilities and infrastructure.

DEPARTMENTAL COORDINATION
The Public Works and Finance Departments work very closely in tracking SB 1 allocations, budgeting the funds appropriately, and adhering to the reporting requirements of the CTC.

FISCAL AND SUSTAINABILITY IMPACT:

The City is expected to receive approximately $3.6 million in FY 2024-25, and annually in years thereafter to help fund the City’s transportation infrastructure and safety projects.

ATTACHMENTS:

Page | 4
Resolution
RESOLUTION NO._______ (N.C.S)
RESOLUTION ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2024-25 FUNDED BY SB 1, THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City, will receive an estimated $3.6 million in RMRA funding in fiscal year 2024-25 from SB 1; and
WHEREAS, this is the eighth year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities through the presentation of the pavement management and street prioritization policy presentation to Council and the Finance Committee and through outreach presented to the public for the Active Transportation Plan and the Streetscape Master Plan; and
WHEREAS, the City used the Pavement Management and Street Prioritization Policy to develop the SB 1 project list to ensure revenues are being used on the most high-priority, equitable and cost-effective projects that also meet the communities priorities for transportation investment; and
WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate approximately 995k square feet of streets/roads, add active transportation infrastructure throughout the City this year and similar projects into the future; and WHEREAS, the 2021 California Statewide Local Streets and Roads Needs Assessment found that the City streets and roads are in an “at-risk” condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “good-excellent” condition; and
WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of Salinas, State of California, as follows:

1. The foregoing recitals are true and correct.

2. The following list of newly proposed projects will be funded in-part or solely with Fiscal Year 2024-25 Road Maintenance and Rehabilitation Account revenues:

3. The following previously proposed and adopted projects may also utilize Fiscal Year 2024-25 Road Maintenance and Rehabilitation Account revenues in their delivery. With the relisting of these projects in the adopted fiscal year resolution, the City is reaffirming to the public and the State, the intent to fund these projects with Road Maintenance and Rehabilitation Account revenues:

Project Title Description Location Estimated
Useful Life
Estimated
Schedule
Williams
Road Safe
Street
Corridor
Project
Streetscape improvements, utility
improvements, road
reconstruction, median island, and
ADA improvements.

East Boronda
Road from
Dartmouth Way
to 1200 feet East
of McKinnon
Street
20-25 years
Start Construction
Summer 2024
Completion Spring
2026
PASSED AND APPROVED by the City Council of the City of Salinas, State of California this 11th day of June, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
______________________________
Kimbley Craig, Mayor
ATTEST:
_______________________________
Patricia M. Barajas, City Clerk

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-286, Version: 1
Agreements for Professional Services for Permit and Code Enforcement Services Approve a Resolution authorizing an on-call list for permit and code enforcement services and authorizing the execution of on-call and project specific Professional Services Agreements, and authorizing the City Manager and City Attorney to finalize and execute a Funding Agreement with Scannell Properties to reimburse the City for augmentation of plan review and inspection services.

City of Salinas Page 1 of 1 Printed on 6/7/2024
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Page | 1

CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: JUNE 11, 2024
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: LISA BRINTON, DIRECTOR
THROUGH: DAVID GONZALVES, ASSISTANT DIRECTOR
BY: ANGELINE ANZINI, CHIEF BUILDING OFFICIAL

YAZMIN OCHOA-FLORES, ADMINISTRATIVE ANALYST
TITLE: AGREEMENTS FOR PROFESSIONAL SERVICES FOR PERMIT

AND CODE ENFORCEMENT SERVICES
RECOMMENDED MOTION:

A motion to approve a Resolution:
1) Establishing a three-year On-Call list for permit and code enforcement professional services to include True North Compliance Services, Shums Coda Associates, TRB and Associates, 4LEAF, CSG Consultants, and Willdan Engineering; 2) Authorizing the City Manager to execute On-Call Agreements for Professional Services for permit services with True North Compliance Services, Willdan Engineering, Shums Coda Associates, and 4LEAF for Fiscal Years 2024-25, 2025-26 and 2026-27 with an individual agreement total compensation amount not to exceed $150,000 for FY 2024-25; 3) Authorizing the City Manager to execute an On-Call Agreement for Professional Services for code enforcement services with Willdan Engineering for Fiscal Years 2024-25, 2025- 26 and 2026-27 with a total compensation amount not to exceed $250,000 for FY 2024- 25;
4) Authorizing the City Manager to execute an Agreement for Professional Services with TRB and Associates effective June 11, 2024, to June 30, 2026, for an amount not to exceed $600,000 to facilitate the permitting of a proposed new warehouse/logistics facility; and 5) Authorizing the City Manager and City Attorney to finalize, and the City Manager to execute a Funding Agreement with Scannell Properties, the developer of the proposed new warehouse/logistics facility project, to reimburse the City for augmentation of plan review and inspection services incurred for this project.

Page | 2
EXECUTIVE SUMMARY:

The Community Development Department (CDD) seeks to establish a three-year, On-Call list to facilitate the provision of professional services for permit administration, plan review, building code enforcement, and special projects at the City’s Permit Center. Authorization to enter into Agreements with True North Compliance Services, Willdan Engineering, Shums Coda Associates, TRB and Associates, and 4LEAF for the Fiscal Year 2024-25 through Fiscal Year 2026-27 is also requested. These contracts are essential to address Permit Center application volume, technical support, and large-scale development projects. All contracted consultants are required to maintain appropriate certifications relevant to their projects. Leveraging consultant services alongside City Permit Center staff enables CDD to enhance and sustain a superior level of customer service. Year One funding for permit services functions (administration, plan review and inspection) Agreements is included in the proposed Permit Center Enterprise Fund FY 2024-25 Budget. Year One funding for Code Enforcement services is included in the proposed Measure G FY 2024-25 Budget.

Additionally, staff seeks authorization to enter a Funding Agreement with Scannell Properties, the developer of a proposed new warehouse/logistics facility project. Under the Funding Agreement, the Developer agrees to be responsible for costs and expenses associated with contract consultants’ work (TRD), City staff time to administer consultant agreement and work, and city staff time for project management and administrative costs and expenses incurred with the permitting the proposed project.

BACKGROUND:

The Permit Services Division, funded by the Permit Center Enterprise Fund, has historically utilized contracted consultants. Presently, the division relies on external technical experts for plan reviews, permitting, and inspection services. Contracting for professional services enables the Permit Center to promptly respond to an increasing number of development applications due to economic growth, particularly for major and complex projects. The Code Enforcement division also requires the services of consultants to ensure appropriate resources are available to support their divisional objectives of addressing violations, including nonpermitted vendors.

In April 2024, CDD advertised a Request for Qualifications (RFQ), provided as an attachment to this staff report, to establish a list of qualified consulting firms to perform professional services for permit administration, plan review, building inspections, code enforcement and special projects on an “on-call” basis. Statements of Qualification submittals were received from the following firms:
o True North Compliance Services Inc. (Burlingame, CA)
o The Code Group, Inc. dba VCA Code (Orange, CA)
o Willdan Engineering (Oakland, CA)
o Shums Coda Associates, Inc (Pleasanton, CA)
o TRB and Associates, Inc. (Santa Clara, CA)
o West Coast Code Consultants, Inc. (San Francisco, CA) o Bureau Veritas North America Inc. (Sacramento, CA)
o CSG Consultants, Inc. (Foster City, CA)
Page | 3
o 4LEAF, Inc. (Pleasanton, CA)
A review panel comprised of four City staff reviewed the nine submittals based on the selection criteria listed in the RFQ document that included:
1) Firm Profile
2) Quality of Staff/Project Team
3) Relevant Project Experiences and References
4) Demonstrated Technical Ability
5) Fee Structure
Based on these criteria, the review panel selected True North Compliance Services, Willdan Engineering, Shums Coda Associates, TRB and Associates, 4LEAF, and CSG Consultants as the six top-ranked firms to be placed on a three-year On-Call list. It is requested that authorization to enter into on-call agreements for a three-year period under individual Agreements for Professional Services with the City to provide regular permit administration, plan review, building inspections, code enforcement, and special projects. Draft Agreements for Professional Services for Fiscal Years 2024-25, through 2026-27 are attached to this staff report. Under the terms of the Agreements, compensation will be provided as described on Exhibit B of each Agreement. Any additional Agreements for future scope of work will be negotiated and then executed following City procurement procedures.

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).

In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

STRATEGIC PLAN INITIATIVE:

The proposed Agreements support the City of Salinas Strategic Plan 2022-2025 Goals and Strategies of Economic Development, Housing/Affordable Housing, Public Safety, and Effective and Culturally Responsive Government by enhancing Permit Center operations and facilitating safe and efficient development within the City including the provision of high-level customer service and efficiently moving projects forward within required timelines.

Page | 4
DEPARTMENTAL COORDINATION:

This item was prepared by the Community Development Department, in collaboration with the City Attorney’s Office and the Finance Department.

FISCAL AND SUSTAINABILITY IMPACT:

The funding source for permit services functions (administration, plan review and inspection) is the Permit Center Enterprise Fund and is included in the FY 2024-25 Proposed Budget. Funding for code enforcement services comes from Measure G and is included in the FY Proposed 2024- 25 Budget. Any need to provide augmented professional services for the permitting of a proposed new warehouse/logistics facility project will be covered through a Funding Agreement in which the developer (Scannell Properties) agrees to reimburse the City for additional costs and expenses incurred related to the proposed project.

ATTACHMENTS:

1. Resolution establishing an On-Call list for Permit and Code Enforcement services, and authorizing execution of Agreements for Professional Service and a Funding Agreement a. Agreement for Professional Services with True North Compliance Services, Inc. b. Agreement for Professional Services with and Willdan Engineering (Permit Services)
c. Agreement for Professional Services with Shums Coda Associates, Inc d. Agreement for Professional Services with 4LEAF, Inc
e. Agreement for Professional Services with and Willdan Engineering (Code Enforcement Services)
f. Agreement for Professional Services with TRB and Associates, Inc. g. Funding Agreement for augmented Permit Services for a Proposed New Logistics Facility Project

2. Request for Qualifications for On-Call Permit and Code Enforcement Services 1 RESOLUTION NO. (N.C.S.)

A RESOLUTION ESTABLISHING AN ON-CALL LIST FOR PERMIT AND CODE

ENFORCEMENT SERVICES AND AUTHORIZING THE EXECUTION OF ON CALL

AND PROJECT SPECIFIC PROFESSIONAL SERVICES AGREEMENTS AND

AUTHORIZING THE EXECUTION OF A FUNDING AGREEMENT WITH

SCANNELL PROPERTIES FOR THE REIMBURSEMENT OF AUGMENTED PERMIT

PROCESSING SERVICES
WHEREAS, the Permit Center strives to offer a comprehensive, one-stop location providing Permit and Code Enforcement services; and
WHEREAS, the Permit Services division relies on external technical experts to support plan reviews, permitting, and inspection services; and
WHEREAS, the Code Enforcement division requires the services of consultants to support their divisional objectives; and
WHEREAS, it is essential to address technical and large-scale development projects by leveraging consultant services alongside City Permit Center staff to enable the Community Development Department to enhance and sustain a superior level of customer service; and WHEREAS, on April 8, 2024, the City of Salinas initiated a Request for Qualifications (RFQ) process to identify firms with the requisite qualifications to provide permit and code enforcement services; and
WHEREAS, on May 6, 2024, Community Development staff received nine (9) statements of qualifications (SOQ) from consultants; and
WHEREAS, a panel consisting of four Community Development staff reviewed each Statement of Qualifications and selected True North Compliance Services, Willdan Engineering, Shums Coda Associates, TRB and Associates, 4LEAF, and CSG Consultants as qualified and capable of providing the experience, and technical expertise necessary to fully meet the needs of the City’s development processes; and
WHEREAS, True North Compliance Services, Willdan Engineering, Shums Coda Associates, TRB and Associates, 4LEAF, and CSG Consultants each have extensive knowledge and experience in providing technical services to building departments throughout multiple jurisdictions in California and employ staff that have the requisite certification, training, and experience necessary to meet the City’s needs; and
WHEREAS, costs associated with On-Call Agreements for permit services will be fully recouped through the collection of cost-neutral permit and inspection fees appropriated to the City’s Permit Services Enterprise Fund; and
WHEREAS, costs associated with the On-Call Agreement for code enforcement services 2 will be funded by proposed FY 2024-25 Measure G Fund appropriation; and WHEREAS, additional costs associated with the Agreement for augmented permit services of a proposed new warehouse/logistics facility project will be fully recouped through a Funding Agreement with the developer; and
WHEREAS, at this time, there are no other consultant vendors within the City of Salinas that can perform the scope and level of professional services required; and WHEREAS, the City Council has authority, pursuant to Salinas Municipal Code Section 12-28.080, to authorize the proposed Agreements without application of a local purchasing preference; and
WHEREAS, the City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council establishes a three-year On-Call list (July 1, 2024 – June 30, 2027) for permit and code enforcement services to include True North Compliance Services, Willdan Engineering, Shums Coda Associates, TRB and Associates, 4LEAF, and CSG Consultants; and
BE IT FURTHER RESOLVED that the City Manager is authorized to execute On-Call Agreements for Professional Services for permit services with True North Compliance Services, Willdan Engineering, Shums Coda Associates, and 4LEAF for Fiscal Years 2024-25, 2025-26 and 2026-27 with an individual agreement total compensation amount not to exceed $150,000 for FY 2024-25; and
BE IT FURTHER RESOLVED that the City Manager is authorized to execute an OnCall Agreement for Professional Services for code enforcement services with Willdan Engineering for Fiscal Years 2024-25, 2025-26 and 2026-27 with a total compensation amount not to exceed $250,000 for FY 2024and
BE IT FURTHER RESOLVED that the City Manager is authorized to execute an Agreement for Professional Services with TRB and Associates effective June 11, 2024 to June 30, 2026 for an amount not to exceed $600,000 to facilitate the permitting of a proposed new warehouse/logistics facility; and
BE IT FURTHER RESOLVED that the City Manager and City Attorney are authorized to finalize, and the City Manager is authorized to execute a Funding Agreement with Scannell Properties, the developer of the proposed new warehouse/logistics facility project, to reimburse the City for augmentation of plan review and inspection services incurred for this project.

PASSED AND APPROVED this 11th day of June 2024, by the following vote:

AYES:
3 NOES:

ABSENT:

ABSTAIN:

APPROVED:
______________________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
Funding Agreement Page 1 of 4
Scannell Properties for Amazon Facility
May 23, 2024
Funding Agreement
Scannell Properties for Amazon Facility
This Funding Agreement is entered into by and between the City of Salinas, a California charter city and municipal corporation, hereinafter referred to as “the City,” and Scannell Properties, a California Corporation, hereinafter referred to as “the Developer.”

RECITALS
WHEREAS, Developer has proposed to develop a new proposed warehouse/logistics facility for Amazon (the “Project”); and
WHEREAS, City has entered into an agreement with TRB and Associates (hereinafter “TRB”) and hereinafter referred to as “the Consultants”, which agreement is attached hereto as Exhibit A, respectively, to complete the permitting process for a proposed new logistics facility; and
WHEREAS, Developer has agreed to be responsible for additional costs and expenses associated with the Consultants’ work for value added services to deliver the Project at an expedited rate on the Project for services rendered on an hourly basis, reimbursables and administrative overhead incurred for this project, as determined by the Chief Building Official; NOW, THEREFORE, in mutual consideration of the covenants, terms, and conditions contained herein, the parties agree as follows:

TERMS

1. Purpose. The purpose of this Agreement is to define the City’s and the Developer’s obligations with regard to the Consultants’ completion of the permitting of a proposed new logistics facility.

2. Developer’s Funding Obligations.
(a) Developer shall be solely responsible for additional costs and expenses incurred by the Consultants work for value added services to deliver the Project at an expedited rate as set forth in the attached professional services agreement and as set forth in Section 3 of this Funding Agreement. Further, Developer shall reimburse the City for all additional costs and expenses incurred by the City related to permitting of a proposed new logistics facility as further defined in Exhibit B.
(b) The total estimated amount of costs and expenses to be incurred by the Consultant and its subconsultants for services and work contemplated in Exhibit B is estimated to be approximately $1,000,000. Both City and Developer understand and acknowledge the total amount of costs and expenses may differ from such estimate due to changes in the scope of work and to circumstances and events now unknown and which may arise during the course of the Consultant’s work on the Project.

Funding Agreement Page 2 of 4
Scannell Properties for Amazon Facility
May 23, 2024

3. Deposit. On the date this Funding Agreement is signed by its authorized representatives, Developer will deposit with City the sum of two-hundred and fifty thousand dollars ($250,000) to be held and applied by City toward payment of services rendered by the Consultants.

4. Balance of Account. The deposit shall remain at the authorized amount of $250,000 until such time that the developer and the City agree the deposit is no longer necessary or the project is completed. The Developer shall, within seven (7) days after receipt of written notice from City, replenish the deposit in an amount of the expenditure to cover additional anticipated costs and expenses. City shall keep a full and detailed accounting of all disbursements from the funds so deposited, which accounting shall be made available to Developer upon request. Developer agrees that City will not authorize the Consultants to perform additional services or to continue work on the Project until Developer shall have deposited with the City sums sufficient to cover all additional estimated costs and expenses determined by the City to be necessary to fund the Consultants’ continued work. Upon completion of the Consultants’ work on the Project, City will return to Developer all deposited sums remaining after payment of all costs and expenses.

In the event Developer fails to pay additional sums necessary to cover additional reimbursable costs and expenses, City shall have no obligation to continue processing any applications, permits, other approvals or services requested by Developer or required for the Project and further Developer acknowledges that the Consultants shall have no obligation to continue their work on the Project.

5. Indemnification and Hold Harmless. Developer agrees to and shall at its own cost and expense defend, indemnify, and hold City and all of its board, commissions, officers and employees harmless from any and all claims, actions or proceedings to attack, set aside, challenge, void or annul the City’s permitting process completed by the Consultants on the Project or any other services associated with the Project. Developer agrees and shall hold the City and all of its boards, commissions, officers and employees harmless from any and all damages, costs or expenses, including attorney fees and other professional fees, and any and all liabilities, claims, actions, suits or proceedings to attack, set aside, challenge, void or annul any determination regarding the Consultants’ permitting process or any other services associated with the Project. City agrees to and shall promptly notify Developer of any such claim, action or proceeding. Nothing contained in this section shall prohibit City from participating in the defense of any claim, action or proceeding if City bears its own attorney fees and costs and City defends the action in good faith.

Developer shall reimburse the City for all costs and expenses including, but not limited to, reasonable fees and charges of architects, engineers, attorneys, and other professionals, in addition to any court costs, incurred by City in enforcing the provisions of this section.

6. Notices. Written notices shall be sent by first class mail, postage prepaid, to the parties as follows:

If to City:

David Gonzalves
Funding Agreement Page 3 of 4
Scannell Properties for Amazon Facility
May 23, 2024
City of Salinas
65 W. Alisal Street
Salinas, California 93901
With a Copy to:

City Attorney
City of Salinas
200 Lincoln Avenue
Salinas, California 93901
If to Developer:

Name
Scannell Properties
3468 Mt. Diablo Boulevard Suite B-115
Lafayette, CA 94549
With a Copy to:

Attorney
Address

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

8. Integration and Agreement. This Funding Agreement represents the entire understanding of City and Developer as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters contained herein. No prior oral or written understanding shall be of any force and effect with respect to those matters covered in it.

This Funding Agreement may not be modified or altered except by amendment in writing signed by both parties.

9. Jurisdiction. This Funding Agreement shall be administered and interpreted under the laws of the State of California. Jurisdiction of any disputes arising from or under this Funding Agreement shall be in the State of California, in the County of Monterey.

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

11. Attorney Fees. In case suit shall be brought to interpret or to enforce this Funding Agreement, or because of the breach of any other covenant or provision herein contained, the prevailing party in such action shall be entitled to recover their reasonable attorney fees in addition to such costs Funding Agreement Page 4 of 4
Scannell Properties for Amazon Facility
May 23, 2024
as may be allowed by the Court. City’s attorney fees, if awarded, shall be calculated at the market rate.

12. Successors and Assigns. This Funding Agreement and all of the provisions herein shall be binding upon and shall inure to the benefit of the heirs, legal representatives, successors, and assigns of the respective parties hereto.

IN WITNESS WHEREOF, the undersigned, as authorized representatives of the City of Salinas and Scannell Properties have executed this Funding Agreement.

CITY OF SALINAS
_____________________________________ ______________________________ René Mendez Date
City Manager
APPROVED AS TO FORM:
_____________________________________ ______________________________ Christopher Callihan Date
City Attorney
Scannell Properties
A California General Partnership
______________________________________ _____________________________ By: Name Date
Its: Title

REQUEST FOR QUALIFICATIONS
Request for Qualifications for On-Call Permit and Code
Enforcement Services
Important Dates
Questions due: Monday, April 15th, 2024
Question responses posted (no later than): Monday, April 22nd, 2024 Statements of Qualifications deadline: Monday, May 6th, 2024 Community Development Department
City of Salinas
65 West Alisal Street, Salinas, CA 93901
Contact: David Gonzalves, Assistant Director
Email: [email protected]

SUMMARY OF REQUEST
The City of Salinas (the City) is seeking to establish a list of qualified consulting firms (Consultants) to perform professional services for permit administration, plan review, building inspections, code enforcement and special projects on an “on-call” basis.

OVERVIEW and BACKGROUND
Salinas is the largest city in the County of Monterey and serves as the county seat. Known as the “salad bowl of the world”, the community is surrounded by agricultural lands which drive its economy and shape its heritage. The city lies about 100 miles south of San Francisco and approximately 10 miles inland of the Monterey Peninsula. Salinas has grown tremendously over the past sixty years, with a population of less than 30,000 in 1960, to over 160,000 residents today. Diversity is one of Salinas’ strengths, with 75 percent of residents identifying as Hispanic/Latino.

Salinas has been fortunate to have significant development and business interest. In 2023, the City’s Permit Center issued 2,247 permits with a valuation of over $100 million. In addition to the current volume of development, the City of Salinas has two future growth areas with approved Specific Plans containing between 6,827 and 8,251 residential units.

The anticipated influx of additional construction requires the City to seek additional professional services and experience to augment internal capacity. This may be as either a technical consultant managing a project or as an extension of City staff. The City will review qualifications and create a list of on-call consultants. The City does not expect team responses will necessarily include each focus area, or expertise in every aspect of each focus area. As appropriate, the City may conduct additional competitive processes prior to awarding contracts for more specific scopes of work. Selection for an on-call list does not guarantee work or a commitment to enter into a contract with the consultant. Once approved by City Council, the list shall be valid for a three (3) year period.

SCOPE OF SERVICES
The services listed under each focus area represent the types of tasks most likely to be requested, Focus Area 1
Permit Administration
o Provide permit clerical and technician assistance to support to the Permit Center. o Counter, and customer services related to receiving and distributing permit applications.
o Receive, process and issue building permits and coordinate the plan check and inspection process, including the tracking and routing of building plans, and filing of building permit applications.
o Input information into the City’s permit tracking system. o Monitor and track the status of building permit applications and plan check for expiration and notify applications prior to the expiration of their building permits. o Provide public information regarding building permit applications, plan check, and inspection services and related matters.
o Identify and collect all required fees for building permit applications and other Permit services based on the City’s most current fee schedule.

Focus Area 2
Plan Check
o Perform building plan checks.
o Perform architectural, structural, plumbing, mechanical, and electrical plan check review for buildings and structures for compliance with applicable Federal and State laws, building and safety codes, City ordinances, and acceptable engineering practices.
o Review and approve building/structural revisions to plans required during construction.
o Upon request of the City, attend meetings connected with the plan review for high priority projects, as needed.
o Performing an independent evaluation of the applicant’s estimate of the value of the construction project and immediately informing the Building Official or designee if there is a discrepancy between the applicant’s estimate and the City’s or industry standards and practices.
o Interfacing with permits applicants or their representatives to clarify plan check comments as required.
o Signing all approved plans as the “plans examiner of record” in accordance with standard Building Department practice.
o Entering plan check comments and inspection results into the City’s permitting software system
o Provide problem solving methods for unique or challenging plan check or code interpretation issues.

Focus Area 3
Building Inspections
o Provide building inspection services by fully trained/certified inspectors for all construction regulated by all applicable Federal, State and City building and safety codes/ordinances.
o Inspect buildings and structures, for which building permits have been issued, for compliance with the approved plans and applicable codes and ordinances. o Enforce conditions of approval associated with discretionary permits regarding building and safety regulations, as adopted by the City. o During inspections, issue stop/correct work notices, or notices of violation when violations of the above referenced codes and regulations occur. o Input daily inspection information into the City’s computer permit tracking system.
o Upon request of the City, shall provide building inspection services during the course of the construction to enforce compliance with the Conditions of Approval, provisions of the City's Building laws, and the Code requirements set forth on the approved plans for which a permit was issued.
o Ability to serve as a resource and provide information on City regulations to property owners, residents, businesses, the general public and other City departments.

Focus Area 4
Code Enforcement
o Perform field surveys, investigate, and document violations of City zoning, building, nuisance, and property maintenance laws, file complaints against violators.
o Prepare and issue warnings, Notice of Violations, Letters of Non-Compliance, citations, and other additional reports for code violations. o Communicating with violators to establish a path to compliance and set deadlines for compliance.
o Maintaining up-to-date case files with necessary case information, documents, and photos.
o Performing other related duties in support of code enforcement program objectives.

Focus Area 5
Special Projects
o Assemble and review existing City policies, ordinances, and conditions pertaining to the Permit and Code Enforcement division operations, and document any areas of insufficient, incomplete, or missing information. Based on this review develop a timetable for the preparation or revision of policies, ordinances, and conditions, and present a report to Assistant Director for consideration. o Establish, update, and organize forms in compliance with City requirements, regulations, adopted standards, State or other laws and ordinances necessary for the operation of the Building Division, including “hand-out” sheets, which explain building permit application processing procedures identified as being provide by the City. These forms should be in a uniform, easy to understand and visually compelling format.
o As significant large projects are received that require outside services, the City may provide a project scope to the consultants on the approved list with demonstrated expertise in the services requested. Each consultant would then provide a scope of work and not-to-exceed cost estimate. The City will review, identify and negotiate the best scope, base budget, and base fee schedule into a mutually acceptable professional services agreement.
o Provide other professional services as authorized by the City.

RESPONSE FORMAT
In order to expedite and maintain consistency in the evaluation process, each response to this RFQ shall be organized in accordance with this section. Statements of Qualifications will be evaluated based on the criteria listed below. Submissions shall contain thorough description and analysis of the following information in the order presented below:

1. Brief Cover Letter/Letter of Introduction and Executive Summary (three page maximum) o Introduction to the consultant.
o Identification of core services/areas of expertise.
o Identification of which focus areas for which the consultant wishes to be considered.
o Indication that the consultant has the availability and time to dedicate personnel and resources necessary to provide on-call services.
o The name, title and telephone number of the prospective consultant’s designated lead contact person for communications pertaining to this Request.

2. Firm Experience and Qualifications
o A general description of the services provided by the proposer’s firm and subconsultant; the qualifications of each team member providing the requested services and their experience working with municipal departments, commissions, elected officials, and the community.
o A list of representative projects completed by the firms and individuals proposed to work on this project that best exemplify the scope of services requested in this RFQ.
o For each project reference, include the project name, the client contact, the client’s phone number and email, the dates the work was accomplished, and a brief description of the work accomplished.
o Consultant document samples for similar projects.
o A brief biography or resume of each team member.

3. Fee Structure
o A comprehensive fee schedule, including hourly rates for all positions and classifications of individuals that may be involved. The City will review, identify and negotiate the best scope, base budget, and base fee schedule into a mutually acceptable professional services agreement.
o Include similar information for any potential sub-contractor(s) if applicable. o A sample billing invoice.

4. General Contract Requirements
o Proof of Insurability. A brief statement or certificate of insurance from an acceptable insurance company setting forth that insurance coverage as required in the attached sample contract, at a minimum, will be available at the time of commencement of the project. The City reserves the right to request additional insurance coverages and amounts through the final Agreement negotiated between the City and consultant selected.
o Concurrence with contract provisions. A brief statement that the proposer concurs with the provisions of the City’s standard contract as attached to the RFQ. Under certain circumstances, and subject to the discretion of the City, some provisions of the contract may be modified upon final contract negotiations with the selected consultant.

RESPONSE SUBMITTAL
Responses shall be submitted electronically, via email attachments or links, to:

David Gonzalves, Assistant Director
Email: [email protected]
All submittals shall be received by the Department no later than Monday, May 6th, 2024 by 4:30 pm.

In addition to name and address of Consultant, include name, title, e-mail address, and telephone number of the individual the City should contact with questions regarding the response. And of the individuals within the firm, authorized to commit the firm to a contract.

INQUIRIES
Any questions regarding this RFQ may be emailed to [email protected] by Monday, April 15th, 2024. All submitted questions and responses will be posted on the City’s PlanetBids website as an addendum one week after the close of the question period. No questions regarding this RFQ will be answered over the phone. Proposers that contact City personnel or City Council members after the City releases the RFQ shall be disqualified. All addenda shall become part of this RFQ.

A signed copy of any addendum shall be included in the proposal.

CITY PROCESS
Responses will be evaluated to determine qualifications by a panel of City staff with relevant experience. Consultants deemed qualified shall be placed on an on-call list subject to City Council approval. Once approved by City Council, the list shall be valid for three years. As projects are scheduled or received that require outside services, the City may provide a project scope to the consultants on the approved list with demonstrated expertise in the services requested. Each consultant would then provide a scope of work and not-to-exceed cost estimate based upon their fee schedule. The City will review, identify the best scope and budget, and will negotiate a mutually acceptable professional services agreement. Depending on budget, City Council approval may be required to execute a final agreement. If the City and selected consultant are not able to reach an agreement, the City will consider the next highest ranked consultant.

The City reserves the right to request additional information from any and all prospective firms as deemed necessary by the City in order to evaluate the responses.  This process may not be used, however, as an opportunity to submit missing documentation or to make substantive revisions to the original response. Each prospective firm submitting a proposal in response to this Request for Qualifications agrees that the preparation of all materials and presentation for submittal to the City is at the prospective firm’s sole cost and expense, and the City will not, under any circumstances, be responsible for any costs or expenses incurred by a prospective firm.

CONDITIONS AND RESPONSIBILITIES OF REQUEST

1. General Conditions. The City of Salinas reserves the right to (1) reject any or all responses, (2) waive informalities in the responses, and (3) take whatever action or make whatever decision it determines to be in the best interest of the City. All responses will remain in effect for at least ninety (90) days from the date of submission. Any contract agreement shall not be binding or valid with the City unless and until it is executed by authorized representatives of the City and of the Selected Consultant.

A prospective firm may withdraw their proposal at any time prior to the date and the time which is set forth herein as the deadline for submittal of proposals.

2. Liability of Costs and Responsibility. Each prospective firm submitting a statement of qualification in response to this Request for Qualifications (RFQ) agrees that the preparation of all materials and presentation for submittal to the City is at the prospective firm’s sole cost and expense, and the City will not, under any circumstances, be responsible for any costs or expenses incurred by a prospective firm.

Prospective firms are responsible for making necessary investigations and examination of records.  Failure to do so will not act to relieve any condition of the proposed agreement or the requirements set out in the RFQ.  It is mutually understood and agreed that the submission of a statement of qualification shall be considered conclusive evidence that the prospective firm has made such examinations and investigations.  No request for modification of a statement of qualification shall be considered after its submission on the grounds that the prospective firm was not fully informed as to any fact or condition.

The selected Consultant shall be required to assume responsibility for all services offered in the statement of qualification whether or not they possess them within their organization. The selected consultant will be the sole point of contact with regard to contractual matters, including payment of any and all charges resulting from the contract.

3. Standard Agreement. A sample professional services agreement is attached for the proponent’s reference. It is the responsibility of the prospective consultant to be familiar with and be prepared to accept the terms of this standard contract (if awarded future services). In some instances, contract provisions can be modified after review and approval of the City during final contract negotiations. Overall, however, the provisions in this contract are those preferred by the City for the engagement of consulting services relating to the RFQ. If any of the terms and conditions contained in the standard agreement are not agreeable, these should be identified specifically, otherwise it will be assumed that the Consultant is willing to enter into the agreement as it is written. Failure to identify contractual issues can be a basis for City to disqualify a consultant.

4. Insurance. Consultant shall, throughout the duration of project, maintain comprehensive general liability and property insurance covering all operations of Consultant, its agents and employees, performed in connection with the project in the amounts and in the types of coverages shown in the sample professional services agreement.

5. Non-Discrimination/Non-Preferential Treatment. The successful Consultant shall not discriminate, in any way, against any person on the basis of race, sex, color, age, religion, sexual orientation, actual or perceived gender identity, disability, ethnicity, or national origin, in connection with or related to the performance of City contracts.

6. Rights to Submitted Materials. All responses and related correspondence, reports, charges, schedules, exhibits and other documentation submitted with the proposal (electronically or physically) will become the property of the City and a matter of public record. All documents submitted in response to the RFQ will be subject to disclosure if requested by a member of the public. There are a very limited number of narrow exceptions to these disclosure requirements.

Any information that a prospective consultant considers confidential, the disclosure of which would be an unwarranted invasion of personal privacy, should be submitted in a sealed envelope marked "CONFIDENTIAL; NOT PUBLIC RECORDS." During the selection process, the City will keep such information confidential and will not disclose it except as may be required under applicable law, including the California Public Records Act. This means that, depending on the nature or timing of the request, or future court decisions, that information may not remain private and may be publicly disclosed. Once the selection process is completed, the City will return this information to the Consultant if not selected. Budgets and cost proposals submitted by proposers shall not be considered confidential or proprietary and may be subject to disclosure.

7. Prohibition of Gifts. City staff and officials are subject to several legal and policy limitations regarding receipt of gifts from persons, firms, or corporations either engaged in business with the Agency, or proposing to do business with the City. The offering of any illegal gift shall be grounds to disqualify a Consultant. To avoid even the appearance of impropriety, Proponents and Selected Consultant should not offer any gifts or souvenirs, even of minimal value, to City officers or employees.

8. Use of Subcontractors. Consultants must obtain the City’s prior written approval to use any consultants while performing any portion of this Agreement. Such approval must approve of the proposed consultant and the terms of compensation.

ATTACHMENTS

1. Professional Services Agreement Template
Form: Professional Services Agreement v. November 2023 Page 1 of 16 [Consultant Name]
[Agreement Month and Year]

AGREEMENT

FOR PROFESSIONAL SERVICES

BETWEEN

THE CITY OF SALINAS AND
[CONSULTANT’S LEGAL NAME]

Form: Professional Services Agreement v. November 2023 Page 2 of 16 [Consultant Name]
[Agreement Month and Year]
Contents
RECITALS ..................................................................................................................................... 4 TERMS ........................................................................................................................................... 4

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

25. Conflict of Interest. .............................................................................................................. 9

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

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

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

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

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

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

Form: Professional Services Agreement v. November 2023 Page 3 of 16 [Consultant Name]
[Agreement Month and Year]

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

33. Joint Representation. .......................................................................................................... 10

34. Warranty of Authority........................................................................................................ 10

35. No Waiver of Rights. ......................................................................................................... 11 Exhibit A- Insurance Requirements .............................................................................................. 12 Exhibit B- Scope of Service .......................................................................................................... 15

Form: Professional Services Agreement v. November 2023 Page 4 of 16 [Consultant Name]
[Agreement Month and Year]

AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN
THE CITY OF SALINAS AND [EXACT LEGAL NAME]
This Agreement for Professional Services (the “Agreement” and/or “Contract”) is made and entered into this ____ day of ______, 202_, between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”), and [EXACT LEGAL NAME], a [California corporation/limited liability company/dba/etc.] (hereinafter “Consultant”).

RECITALS
WHEREAS, Consultant represents that he, she, or it is specially trained, experienced, and competent to perform the special services which will be required by this Agreement; and WHEREAS, Consultant is willing to render such professional services, as hereinafter defined, on the following terms and conditions.

NOW, THEREFORE, City and Consultant agree as follows:

TERMS

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

2. Term; Completion Schedule. This Agreement shall commence on [XXX], and shall terminate on [XXX], unless extended in writing by either party upon (30) days written notice.

This Agreement may be extended only upon mutual written consent of the parties, and may be terminated only pursuant to the terms of this Agreement.

3. Compensation. City hereby agrees to pay Consultant for services rendered the City pursuant to this Agreement on a time and materials basis according to the rates of compensation of [or as set forth in Exhibit B]. The total amount of compensation to be paid under this Agreement shall not exceed [____].

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

Except as specifically authorized by City, Consultant shall not bill City for duplicate services performed by more than one person. Consultant’s bills shall include the following information to which such services cost or pertain:
(A) A brief description of services performed;
(B) The date the services were performed;
(C) The number of hours spent and by whom;
(D) A brief description of any costs incurred; and
(E) The Consultant’s signature.

Form: Professional Services Agreement v. November 2023 Page 5 of 16 [Consultant Name]
[Agreement Month and Year]
Any such invoices shall be in full accord with any and all applicable provisions of this Agreement.

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

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

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

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

8. Responsibility of City. To the extent appropriate to the projects to be completed by Consultant pursuant to this Agreement, City shall:
(A) Assist Consultant by placing at its disposal all available information pertinent to the projects, including but not limited to, previous reports and any other data relative to the projects. Nothing contained herein shall obligate City to incur any expense in connection with completion of studies or acquisition of information not otherwise in the possession of City. (B) Examine all studies, reports, sketches, drawings, specifications, proposals, and other documents presented by Consultant, and render verbally or in writing as may be appropriate, decisions pertaining thereto within a reasonable time so as not to delay the services of Consultant.
(C) [City Manager Name], City Manager, or his designee, shall act as City’s representative with respect to the work to be performed under this Agreement. Such person shall

Form: Professional Services Agreement v. November 2023 Page 6 of 16 [Consultant Name]
[Agreement Month and Year]
have the complete authority to transmit instructions, receive information, interpret and define City’s policies and decisions with respect to materials, equipment, elements, and systems pertinent to Consultant’s services. City may unilaterally change its representative upon notice to the Consultant.
(D) Give prompt written notice to Consultant whenever City observes or otherwise becomes aware of any defect in a project.

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

10. Indemnification and Hold Harmless.

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

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

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

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

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

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

Form: Professional Services Agreement v. November 2023 Page 7 of 16 [Consultant Name]
[Agreement Month and Year]
Execution of the amendment by City and Consultant shall constitute the Consultant’s notice to proceed with the changed scope.

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

16. Termination.
(A) City shall have the authority to terminate this Agreement, upon ten days written notice to Consultant, as follows:
(1) If in the City’s opinion the conduct of the Consultant is such that the interest of the City may be impaired or prejudiced, or
(2) For any reason whatsoever.
(B) Upon termination, Consultant shall be entitled to payment of such amount as fairly compensates Consultant for all work satisfactorily performed up to the date of termination based upon the Consultant’s rates shown in Exhibit B and/or Section 3 of this Agreement, except that:
(1) In the event of termination by the City for Consultant’s default, City shall deduct from the amount due Consultant the total amount of additional expenses incurred by City as a result of such default. Such deduction from amounts due Consultant are made to compensate City for its actual additional costs incurred in securing satisfactory performance of the terms of this Agreement, including but not limited to, costs of engaging another consultant(s) for such purposes. In the event that such additional expenses shall exceed amounts otherwise due and payable to Consultant hereunder, Consultant shall pay City the full amount of such expense. (C) In the event that this Agreement is terminated by City for any reason, Consultant shall:
(1) Upon receipt of written notice of such termination promptly cease all services on this project, unless otherwise directed by City; and (2) Deliver to City all documents, data, reports, summaries, correspondence, photographs, computer software output, video and audio tapes, and any other materials

Form: Professional Services Agreement v. November 2023 Page 8 of 16 [Consultant Name]
[Agreement Month and Year]
provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement. Such material is to be delivered to City in completed form; however, notwithstanding the provisions of Section 15 herein, City may condition payment for services rendered to the date of termination upon Consultant’s delivery to the City of such material.
(D) In the event that this Agreement is terminated by City for any reason, City is hereby expressly permitted to assume the projects and complete them by any means, including but not limited to, an agreement with another party.
(E) The rights and remedy of the City and Consultant provided under this Section are not exclusive and are in addition to any other rights and remedies provided by law or appearing in any other section of this Agreement.

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

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

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

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

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

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

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

Form: Professional Services Agreement v. November 2023 Page 9 of 16 [Consultant Name]
[Agreement Month and Year]

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

City Manager
City of Salinas
200 Lincoln Avenue
Salinas, California 93901
With a copy to:

City Attorney
City of Salinas
200 Lincoln Avenue
Salinas, California 93901
(B) Written notices to the Consultant shall, until further notice by the Consultant, be addressed to:
[Contact Information for Consultant including Title, Address, Email, and Phone #] (C) The execution of any such notices by the City Manager shall be effective as to Consultant as if it were by resolution or order of the City Council, and Consultant shall not question the authority of the City Manager to execute any such notice. (D) All such notices shall either be delivered personally to the other party’s designee named above, or shall be deposited in the United States Mail, properly addressed as aforesaid, postage fully prepaid, and shall be effective the day following such deposit in the mail.

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

25. Conflict of Interest. Consultant warrants and declares that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, in any manner or degree which will render the services required under the provisions of this Agreement a violation of any applicable local, state or federal law. Consultant further declares that, in the performance of this Agreement, no subcontractor or person having such an interest shall be employed. In the event that any conflict of interest should nevertheless hereinafter arise, Consultant shall promptly notify City of the existence of such conflict of interest so that City may determine whether to

Form: Professional Services Agreement v. November 2023 Page 10 of 16 [Consultant Name]
[Agreement Month and Year]
terminate this Agreement. Consultant further warrants its compliance with the Political Reform Act (Government Code section 81000 et seq.) and Salinas City Code Chapter 2A that apply to Consultant as the result of Consultant’s performance of the work or services pursuant to the terms of this Agreement.

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

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

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

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

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

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

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

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

34. Warranty of Authority. Each party represents and warrants that it has the right, power, and authority to enter into this Agreement. Each party further represents and warrants that it has

Form: Professional Services Agreement v. November 2023 Page 11 of 16 [Consultant Name]
[Agreement Month and Year]
given any and all notices, and obtained any and all consents, powers, and authorities, necessary to permit it, and the persons entering into this Agreement for it, to enter into this Agreement.

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

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

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

CITY OF SALINAS
____________________________
Jim Pia
Interim City Manager
APPROVED AS TO FORM:
_________________________
□ Christopher A. Callihan, City Attorney, or
□ Rhonda Combs, Assistant City Attorney

CONSULTANT
___________________________________
By (Printed Name): ___________________
Its (Title): ___________________________

Form: Professional Services Agreement v. November 2023 Page 12 of 16 [Consultant Name]
[Agreement Month and Year]
Exhibit A- Insurance Requirements
Insurance Requirements
Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Consultant, his agents, representatives, employees, or subcontractors. With respect to General Liability and Professional Liability, coverage should be maintained for a minimum of five (5) years after Agreement completion.

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

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

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

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

Form: Professional Services Agreement v. November 2023 Page 13 of 16 [Consultant Name]
[Agreement Month and Year]
Primary Coverage
For any claims related to this Agreement or the project described within this Agreement, the Consultant’s insurance coverage shall be primary coverage at least as broad as ISO Form CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.

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

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

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

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

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

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

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

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

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

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

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

Form: Professional Services Agreement v. November 2023 Page 14 of 16 [Consultant Name]
[Agreement Month and Year]
Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable insurance language effecting coverage required by this Agreement. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

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

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

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

Form: Professional Services Agreement v. November 2023 Page 15 of 16 [Consultant Name]
[Agreement Month and Year]
Exhibit B- Scope of Service
[Scope of Service; Compensation]
Form: Professional Services Agreement v. November 2023 Page 1 of 22 True North Compliance Services, Inc.

June 2024

AGREEMENT

FOR PROFESSIONAL SERVICES

BETWEEN

THE CITY OF SALINAS AND TRUE
NORTH COMPLIANCE SERVICES, INC.

Form: Professional Services Agreement v. November 2023 Page 2 of 22 True North Compliance Services, Inc.

June 2024
Contents
RECITALS ..................................................................................................................................... 4 TERMS ........................................................................................................................................... 4