Agenda Packet — Salinas City Council, July 1, 2025 (part 6 of 7)

City shall make payment on each such invoice within thirty (30) days of receipt; provided, however, that if Provider 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 Provider until thirty (30) days after a correct and complying invoice has been submitted by Provider. The City shall process undisputed portion immediately.

5. Meet & Confer. Provider 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 Provider is required to furnish as part of the services under this Agreement, Provider shall provide such additional copies as are requested, and City shall compensate Provider for the actual costs related to the production of such copies by Provider.

7. Responsibility of Provider. By executing this Agreement, Provider 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, Provider further agrees and represents to City that the Provider 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 Provider to do and perform Provider’s work. Provider further agrees and represents that Provider 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 Provider pursuant to this Agreement, City shall:
(A) Assist Provider 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 Provider, 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 Provider.
(C) Human Resources Director, or her designee, shall act as City’s representative with respect to the work to be performed under this Agreement. Such person shall have the complete authority to transmit instructions, receive information, interpret and define City’s policies and decisions with respect to materials, equipment, elements, and systems pertinent to Provider’s services. City may unilaterally change its representative upon notice to the Provider.

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(D) Give prompt written notice to Provider 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 Provider from professional responsibility for the work performed.

10. Indemnification and Hold Harmless. Provider 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 Provider’s performance of work hereunder, including the performance of work of any of Provider’s subcontractors or agents, or Provider’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. Provider shall procure and maintain for the duration of this Agreement insurance meeting the requirements specified in Exhibit A hereto.

12. Access to Records. Provider 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 Provider 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 Provider’s usual and customary business hours. Provider 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 Provider. This Agreement is personal to Provider 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. Provider 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 Provider as to the extent of said impacts to time and compensation, an amendment to this Agreement shall be prepared describing such changes. Execution of the amendment by City and Provider shall constitute the Provider’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 Provider, as provided herein, for the services rendered by Provider in connection with which they were prepared. City agrees to hold harmless and indemnify the

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Provider 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 Provider.

16. Termination.
(A) City shall have the authority to terminate this Agreement, upon ten days written notice to Provider, as follows:
(1) If in the City’s opinion the conduct of the Provider is such that the interest of the City may be impaired or prejudiced, or
(2) For any reason whatsoever.
(B) Upon termination, Provider shall be entitled to payment of such amount as fairly compensates Provider for all work satisfactorily performed up to the date of termination based upon the Provider’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 Provider’s default, City shall deduct from the amount due Provider the total amount of additional expenses incurred by City as a result of such default. Such deduction from amounts due Provider 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 Provider(s) for such purposes. In the event that such additional expenses shall exceed amounts otherwise due and payable to Provider hereunder, Provider shall pay City the full amount of such expense. (C) In the event that this Agreement is terminated by City for any reason, Provider 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 provided to Provider or prepared by or for Provider 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 Provider’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 Provider 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.

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17. Compliance with Laws, Rules, and Regulations. Services performed by Provider 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 Provider, 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. Provider expressly warrants not to represent, at any time or in any manner, that Provider is an employee or servant of the City.

20. Integration and Entire Agreement. This Agreement represents the entire understanding of City and Provider 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.

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

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

Tony Johns
951 Blanco Circle, Suite B
Salinas, CA 93901
(C) The execution of any such notices by the City Manager shall be effective as to Provider as if it were by resolution or order of the City Council, and Provider 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, Provider 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. Provider 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. Provider 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. Provider 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, Provider shall promptly notify City of the existence of such conflict of interest so that City may determine whether to terminate this Agreement. Provider further warrants its compliance with the Political Reform Act (Government Code section 81000 et seq.) and Salinas City Code Chapter 2A that apply to Provider as the result of Provider’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 Provider expressly reserves the right to contract with other entities for the same or similar services.

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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 Provider, its representatives, agents or subcontractors by federal, state or local law, Provider 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 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.

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

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

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

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Exhibit A- Insurance Requirements
Insurance Requirements
Provider 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 Provider, 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 Provider 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 Provider 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 Provider. 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 Provider 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 Provider’s insurance (at least as broad as ISO Form CG 20 10, CG 11 85, or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).

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Primary Coverage
For any claims related to this Agreement or the project described within this Agreement, the Provider’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 Provider’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
Provider hereby grants to City a waiver of any right to subrogation which any insurer of said Provider may acquire against the City by virtue of the payment of any loss under such insurance.

Provider 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 Provider, its employees, agents, and subcontractors.

Self-Insured Retentions
Self-insured retentions must be declared by Provider to and approved by the City. At the option of the City, Provider shall provide coverage to reduce or eliminate such self-insured retentions as respects the City, its officers, officials, employees, and volunteers; or the Provider 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 Provider 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.

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Verification of Coverage
Provider 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 Provider’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
Provider shall require and verify that all sub-Providers and/or subcontractors maintain insurance meeting all the requirements stated herein, and Provider shall ensure that Entity is an additional insured on insurance required from such sub-Providers 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 Provider as specified shall in no way be interpreted as relieving Provider of its indemnification obligations or any responsibility whatsoever and the Provider may carry, at its own expense, such additional insurance as it deems necessary.

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Exhibit B- Scope of Service
The scope of services required by the City includes, but may not be limited to, the following:

1. Preplacement medical examinations for prospective City employees, including examinations related to Peace Officer Standards and Training criteria, with timely examination results to City personnel.

2. Fitness for duty examinations, functional capacity evaluations, and CalPERS Industrial Disability Retirement evaluations.

3. Occupational medical exams of City employees relating to workplace injuries and illnesses.

Services provided shall be billed according to the State of California Department of Industrial Relations Official Medical Fee Schedule.

4. Medical surveillance examinations for City employees using criteria established by the City, in addition to other exposure information, with timely examination results to City personnel.

5. Rabies vaccinations and Titer checks.

6. Hepatitis A and B vaccinations.

7. COVID 19 vaccinations.

8. Department of Motor Vehicle medical examinations for commercial drivers.

9. Drug and alcohol testing.

10. Physicals related to Fire Department and Hazardous Materials occupations.

11. Respirator fit tests.

12. Occasional on-site services such as spirometry, respiratory clearance, fit testing, flu shots vaccinations, health related trainings and others as deemed necessary or requested by the City.

13. Maintenance of complete and confidential occupational medical records for the required periods, based on applicable California regulations and the City’s needs.

14. Occupational medical guidance to City staff on an as-needed basis regarding occupational medical examinations.

15. Other services as may be required by the City.

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Provider shall perform the services contemplated in this agreement at the services levels set forth herein:

1. Post-offer pre-employment physical examination and medical surveillance examination results shall be communicated the City in writing within three (3) business days of the examination.

2. In the event a specialist is necessary to evaluate a particular condition identified in a post-offer pre-employment physical examination, Provider shall facilitate referral to a competent specialist, shall review the results of such specialist’s examination, and shall provide the City with a determination as to the extent and the effect of such condition on the applicant’s ability to perform the essential functions of the position.

3. Post-offer pre-employment physical examinations shall be performed at both the Blanco and Rossi clinics and shall be performed at such clinics at the prospective employee’s discretion.

4. Provider will incorporate into its post-offer pre-employment physicals and occupational medical examinations the job descriptions provided by the City.

5. Provider will routinely review established protocols for physical examinations and work with City staff to incorporate modifications thereto as needed to ensure examinations reflect the nature of the job.

6. Provider will designate and assign one contact person to coordinate between both the Blanco and Rossi clinics regarding examination results.

7. Provider and its staff will respond to inquiries from the City, its staff, and its third-party claims administrators as soon as possible, but in no event later than one (1) business day following such an inquiry.

8. Changes to the hours of operation, medical service providers, internal processes, or procedures will be communicated to the City of Salinas at least ten (10) business days prior to the effective date of such change.

9. Provider shall provide necessary training to its employees to endure they have an understanding of the City’s protocols for treatment and adhere to established procedures if clarification is necessary.

10. When possible, occupational medical examinations shall be conducted by a licensed medical doctor. Every effort will be made to ensure that an injured worker sees a medical doctor on the first visit. In the event that an injured worker requests to be treated solely by a medical doctor, Provider will meet this request.

11. Provider will report the results of occupational medical examinations to the City’s third-party claims administrator according to Workers’ Compensation guidelines established by the state of California.

12. Provider will participate on a quarterly, or as-needed, basis in chart reviews with City staff and include a medical provider who can address treatment issues or concerns.

13. Provider shall at all times comply with federal, state, and local laws rules, and regulations related to the confidentiality of medical records and medical information including, but not limited to the Health Insurance Portability and Accountability Act (HIPAA) as the same may be amended from time to time.

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Exhibit C – Schedule of Fees
A. Workers’ Compensation – All services pertaining to work-related injuries will be billed at the California OMFS (official medical fee schedule).

B. Occupational Medicine – Services will be billed according to the schedule below Service Fee Service Fee
Physical Examinations Medical Surveillance (cont.)
Basic Physical Exam $110 Comprehensive Metabolic Panel
Fit for Duty/Return to Work Exam $200 Lipid Panel
DOT Physical $110 CBC Differential
Fire Department Physical $675 EKG
Hazmat Physical OSHA Respirator Questionnaire
Back Evaluation Pulmonary Function Test
Drug Screening and Toxicology Respirator Fit Test $80
Drug Test – 5 Panel – No THC $65
Drug Test – 6 Panel – With THC $70
Drug Test – 10 Panel
Drug Test – 5 Panel - Federal
Urine Collection – DOT
Breath Alcohol Test
X-Rays
Chest X-Ray
Lumbar X-Ray 4/5 views
Medical Surveillance
Flu Vaccine $80
COVID Vaccine
COVID Test – PCR
TB Skin Test $50
Tdap Vaccine
Hepatitis A Vaccine $110
Hepatitis B Vaccine $110
Hepatitis Titer
MMR Vaccine each (2 per series)
MMR Titer
Rabies Vaccine $450
Rabies Titer
Audiometry $60
Vision Testing $25
Urine Dipstick $12
Venipuncture $25
Form: Professional Services Agreement v. July 2024 Page 1 of 16

AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN

THE CITY OF SALINAS AND PROACTIVE WORK HEALTH SERVICES
This Agreement for Professional Services (the “Agreement” and/or “Contract”) is made and entered into this 1
st day of August, 2025, between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”), and ProActive Work Health Services (hereinafter “Provider”).

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

NOW, THEREFORE, City and Provider agree as follows:

TERMS

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

2. Term; Completion Schedule. This Agreement shall commence on August 1, 2025, and shall terminate on June 30, 2027, 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 Provider for services rendered the City pursuant to this Agreement on a time and materials basis according to the rates of compensation of Exhibit B. The total amount of compensation to be paid under this Agreement shall not exceed $90,000.

4. Billing. Provider 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, Provider shall not bill City for duplicate services performed by more than one person. Provider’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) A brief description of any costs incurred; and
Any such invoices shall be in full accord with any and all applicable provisions of this Agreement.

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

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

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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.

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

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

Valerie Camacho
21 San Miguel Avenue
Salinas, California 93901
(C) The execution of any such notices by the City Manager shall be effective as to Provider as if it were by resolution or order of the City Council, and Provider 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.

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.

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

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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.

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

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

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

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

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 Provider, its employees, agents, and subcontractors.

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.

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

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Exhibit B- Scope of Service
The scope of services required by the City includes, but may not be limited to, the following:

2. Fitness for duty examinations, functional capacity evaluations, and CalPERS Industrial Disability Retirement evaluations.

3. Occupational medical exams of City employees relating to workplace injuries and illnesses.

Services provided shall be billed according to the State of California Department of Industrial Relations Official Medical Fee Schedule.

4. Medical surveillance examinations for City employees using criteria established by the City, in addition to other exposure information, with timely examination results to City personnel.

5. Rabies vaccinations and Titer checks.

6. Hepatitis A and B vaccinations.

7. COVID 19 vaccinations.

8. Department of Motor Vehicle medical examinations for commercial drivers.

9. Drug and alcohol testing.

10. Physicals related to Fire Department and Hazardous Materials occupations.

11. Respirator fit tests.

12. Occasional on-site services such as spirometry, respiratory clearance, fit testing, flu shots vaccinations, health related trainings and others as deemed necessary or requested by the City.

13. Maintenance of complete and confidential occupational medical records for the required periods, based on applicable California regulations and the City’s needs.

14. Occupational medical guidance to City staff on an as-needed basis regarding occupational medical examinations.

15. Other services as may be required by the City.

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Provider shall perform the services contemplated in this agreement at the services levels set forth herein:

1. Post-offer pre-employment physical examination and medical surveillance examination results shall be communicated the City in writing within three (3) business days of the examination.

2. In the event a specialist is necessary to evaluate a particular condition identified in a postoffer pre-employment physical examination, Provider shall facilitate referral to a competent specialist, shall review the results of such specialist’s examination, and shall provide the City with a determination as to the extent and the effect of such condition on the applicant’s ability to perform the essential functions of the position.

3. Provider will incorporate into its post-offer pre-employment physicals and occupational medical examinations the job descriptions provided by the City.

4. Provider will routinely review established protocols for physical examinations and work with City staff to incorporate modifications thereto as needed to ensure examinations reflect the nature of the job.

5. Provider and its staff will respond to inquiries from the City, its staff, and its third-party claims administrators as soon as possible, but in no event later than one (1) business day following such an inquiry.

6. Changes to the hours of operation, medical service providers, internal processes, or procedures will be communicated to the City of Salinas at least ten (10) business days prior to the effective date of such change.

7. Provider shall provide necessary training to its employees to endure they have an understanding of the City’s protocols for treatment and adhere to established procedures if clarification is necessary.

8. When possible, occupational medical examinations shall be conducted by a licensed medical doctor. Every effort will be made to ensure that an injured worker sees a medical doctor on the first visit. In the event that an injured worker requests to be treated solely by a medical doctor, Provider will meet this request.

9. Provider will report the results of occupational medical examinations to the City’s thirdparty claims administrator according to Workers’ Compensation guidelines established by the state of California.

10. Provider will participate on a quarterly, or as-needed, basis in chart reviews with City staff and include a medical provider who can address treatment issues or concerns.

11. Provider shall at all times comply with federal, state, and local laws rules, and regulations related to the confidentiality of medical records and medical information including, but not limited to the Health Insurance Portability and Accountability Act (HIPAA) as the same may be amended from time to time.

Page 14 of 14 ends

Exhibit C – Schedule of Fees
A. Workers’ Compensation – All services pertaining to work-related injuries will be billed at the California OMFS (official medical fee schedule).

B. Occupational Medicine – Services will be billed according to the schedule below Service Fee Service Fee
Physical Examinations Medical Surveillance (cont.)
Preplacement Physical Exam $85 Comprehensive Metabolic Panel $30 Fit for Duty/Return to Work Exam $95 Lipid Panel $60
DOT Physical $100 CBC Differential $40
Fire Department Physical EKG $70
Hazmat Physical $110 OSHA Respirator Questionnaire $30
Back Evaluation $55 Pulmonary Function Test $75
Drug Screening and Toxicology Respirator Fit Test
Drug Test – 5 Panel – No THC $60
Drug Test – 6 Panel – With THC
Drug Test – 10 Panel $93
Drug Test – 5 Panel - Federal $66
Urine Collection – DOT $30
Breath Alcohol Test $48
X-Rays
Chest X-Ray $85
Lumbar X-Ray 4/5 views $160
Medical Surveillance
Flu Vaccine $35
Covid Vaccine $250
COVID Test – PCR $200
TB Skin Test $40
Tdap Vaccine $120
Hepatitis A Vaccine
Hepatitis B Vaccine each (3 per series) $120
Hepatitis Titer $55
MMR Vaccine each (2 per series) $175
MMR Titer $100
Rabies Vaccine $775
Rabies Titer $215
Audiometry $50
Vision Testing
Urine Dipstick
Venipuncture
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-264, Version: 1
Modification to Classification - Salary Schedule; Workforce Adjustment and Over Hire Approve a Resolution amending the Classification - Salary Schedule and workforce adjustment; and approval of one over hire Combination Building Inspector in the Community Development Department.

City of Salinas Page 1 of 1 Printed on 6/26/2025
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CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: JULY 1, 2025
DEPARTMENT: HUMAN RESOURCES
FROM: MARINA HORTA-GALLEGOS, HUMAN RESOURCES DIRECTOR
TITLE: MODIFICATION TO CLASSIFICATION – SALARY SCHEDULE; WORKFORCE ADJUSTMENT – OVER HIRE
RECOMMENDED MOTION:

A motion to approve a Resolution amending the Classification – Salary Schedule and workforce adjustment, over hire for the Community Development Department. These amendments include new classifications and classification changes approved through the FY 25-26 budget, in addition to previously approved salary adjustments due in the first full pay period of July 2025.

EXECUTIVE SUMMARY:

Staff recommends that the City Council approve the attached Resolution modifying the Classification – Salary Schedule to reflect new classifications added through the FY 25-26 budget process, classification changes, and previously approved cost of living adjustments. Additionally, staff recommend approval of one over hire Combination Building Inspector in the Community Development Department.

BACKGROUND:

Administration
Through the FY 25-26 budget process, the City Clerk classification was shifted from the Confidential Management unit to the Department Directors unit and must also be shifted on the Classification – Salary Schedule. A Senior Airport Technician was approved through the FY 25-26 budget, the position should be Senior Airport Maintenance Worker and should be added to the Classification – Salary Schedule.

Additionally, staff recommend replacing the vacant Senior Economic Development Manager with a Deputy Director of Economic Development to stand an Economic Development Division that will oversee the City’s economic development programs and initiatives under the direction of the Assistant City Manager.

Community Development
Through the FY 25-26 budget process the following classifications were approved to be added to the workforce and must be added to the Classification – Salary Schedule.

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Business Navigator
Supervising Plan Checker
Additionally, the Community Development Department requests authorization to over hire one Combination Building Inspector II. Due to current and anticipated projects, staff request authorization to over hire one position as soon as a qualified candidate is identified.

Finance
Staff request to adjust the salary range for the classifications of Accounting Manager and replace the vacant Sr. Finance Management Analyst with a Finance Manager. Currently, the two positions are equal on the salary range, oversee critical functions of the Finance Department and report to the Assistant Finance Director. The Accounting Manager is a difficult to fill position. The City recruited in 2021, 2022, 2023, and 2024.
2021 – 2 applications; position filled
2022 – 16 applications, 13 applicants were not qualified, 1 withdrew, no selection 2023 – 24 applications, 18 applicants were not qualified, 6 invited to interview; filled 2024 – 11 applications, 7 applicants were not qualified, 4 invited to interview, no selection In 2023 the Accounting Manager was 7% below market in total compensation when compared to comparator agencies. A recent survey (February 2025) found the position to be approximately 15.5% below market in total compensation when compared to the same comparator agencies. Staff recommend adjusting the salary range 10% to $11,999 at Step 6. This will bring the position closer to market, is comparable to other Managers in the unit, and maintains a separation of 10% between this position and the direct supervisor.

Fire Department
Through the FY 25-26 budget process a Deputy Fire Marshal was approved to be added to workforce and must be shifted to the Association of Management Personnel of Salinas (AMPS) unit.

Library and Community Services
Through the FY 25-26 budget process a Customer Experience Manager was added to workforce and must be added to the Classification – Salary Schedule under the AMPS unit.

Police Department
Staff request to add the classification of Retirement Annuitant – Public Safety Analyst as a new nonsworn extra help (temporary) position in the Police Department that will help support highly technical administrative functions and support management in the various divisions of the department as assigned. Additionally, staff request to add the temporary classification of Senior Police Services Technician to the Classification – Salary Schedule.

Lastly, the Classification – Salary Schedule will need to be adjusted to reflect a previously approved 2% salary adjustments for the AMPS unit, and 3% for Service Employees International Union (SEIU) Blue Collar, SEIU Crew Supervisors, and Salinas Municipal Employees Association (SMEA) effective in the first full pay period of July 2025.

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CEQA CONSIDERATION:

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

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No, Government Code §84308/Levine Act does not apply to this item.

STRATEGIC PLAN INITIATIVE:

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

DEPARTMENTAL COORDINATION:

All departments collaborated through the budget process.

FISCAL AND SUSTAINABILITY IMPACT:

Administration: The impact to the budget in FY 25-26 is approximately $8,200 in base wages for the Deputy Director of Economic Development. This is anticipated to be offset by salary savings while staff recruit for the position. The Senior Airport Maintenance Worker represents an increase of approximately $800 for the fiscal year in base wages which will be covered through the Airport Enterprise Fund.

Community Development: The Combination Building Inspector over hire will not impact the FY budget until the position is filled and will be covered through the Enterprise Fund.

Finance: The impact for FY 25-26 is approximately $24,000 and anticipated to be offset by salary savings while staff recruits for these positions and from other vacancies.

All other items were approved through the FY 25-26 budget process.

Fund Appropriation Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 25-26
Operating
Budget Page
Last Budget
Action (Date,
Resolution)*
1000 12.1111 Salaries and
Benefits
$897,830 $8,200 80 6/17/25, 23269
6100 50.5340 Salaries and
Benefits
$2,299,910 $800 80 6/17/25, 23269
1000 20.2031 Salaries and
Benefits
$202,150 $12,000 124 6/17/25, 23269
1200 20.2036 Salaries and
Benefits
$1,178,690 $12,000 124 6/17/25, 23269
* The FY 25-26 Adopted Budget was adopted on June 17, 2025.

Page | 4
ATTACHMENTS:

Resolution
Exhibit A: Classification—Salary Schedule
Page | 5
RESOLUTION NO. _________ (N.C.S.)

A RESOLUTION AMENDING THE CLASSIFICATION - SALARY SCHEDULE AND

WORKFORCE ADJUSTMENT
BE IT RESOLVED BY THE CITY COUNCIL OF SALINAS that the Classification-Salary Schedule previously adopted by the City Council by Resolution is hereby amended (as shown on the attached Exhibit A: Classification—Salary Schedule) to include the newly budgeted FY 25-26 positions in Administration, Community Development, Library and Community Services, and include the shift of the City Clerk to the Department Directors unit, the Deputy Fire Marshal shift to AMPS; a salary adjustment for the Accounting Manager and addition of Finance Manager in the place of the Sr. Finance Management Analyst; addition of a Retirement Annuitant Public Safety Analyst and Sr. Police Services Technician; addition of one Combination Building Inspector II over hire in Community Development; and previously authorized salary adjustments for the AMPS, SEIU Blue Collar, SEIU Crew Supervisors, and SMEA units, effective July 7, 2025.

PASSED AND APPROVED this 1st day of July 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN: APPROVED:
____________________________________
Dennis Donohue, Mayor
ATTEST:
______________________________
Patricia M. Barajas, City Clerk
Attachment: Exhibit A: Classification—Salary Schedule
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Exhibit A
Effective July 1, 2025
Executive Group
Confidential Management
AMPS
SEIU
Temporary
Benefit
Group Grade Position
Step 1
Hourly
Step 1
Monthly
Step 2
Hourly
Step 2
Monthly
Step 3
Hourly
Step 3
Monthly
Step 4
Hourly
Step 4
Monthly
Step 5
Hourly
Step 5
Monthly
Step 6
Hourly
Step 6
Monthly
17 Accounting Manager 54.0967 9,377 56.9483 9,871 59.7942 10,364 62.7834 10,882 65.9241 11,427 69.2245 11,999 Benefit
Group Grade Position
Step 1
Hourly
Step 1
Monthly
Step 2
Hourly
Step 2
Monthly
Step 3
Hourly
Step 3
Monthly
Step 4
Hourly
Step 4
Monthly
Step 5
Hourly
Step 5
Monthly
Step 6
Hourly
Step 6
Monthly
17 Finance Manager 54.0967 9,377 56.9483 9,871 59.7942 10,364 62.7834 10,882 65.9241 11,427 69.2245 11,999 SEIU
Benefit
Group Grade Position
Step 1
Hourly
Step 1
Monthly
Step 2
Hourly
Step 2
Monthly
Step 3
Hourly
Step 3
Monthly
Step 4
Hourly
Step 4
Monthly
Step 5
Hourly
Step 5
Monthly
Step 6
Hourly
Step 6
Monthly
25 Sr. Airport Maintenance Worker 29.6286 5,136 31.1012 5,391 32.6579 5,661 34.2985 5,945 36.0075 6,241 37.8084 6,553 Benefit
Group Grade Position
Step 1
Hourly
Step 2
Hourly
Step 3
Hourly
Step 4
Hourly
Step 5
Hourly
29 Retired Annuitant - Public Safety Analyst 43.5436 45.7208 48.0055 50.4042 52.9242 Benefit
Group Grade Position
Step 1
Hourly
Step 2
Hourly
Step 3
Hourly
Step 4
Hourly
Step 5
Hourly
29 29.9436 Senior Police Services Tech 19.3500 20.3193 21.3346 22.4019 23.5154 Page | 7
Effective July 7, 2025
AMPS
Benefit
Group Grade Position
Step 1
Hourly
Step 1
Monthly
Step 2
Hourly
Step 2
Monthly
Step 3
Hourly
Step 3
Monthly
Step 4
Hourly
Step 4
Monthly
Step 5
Hourly
Step 5
Monthly
Step 6
Hourly
Step 6
Monthly
15 15.1121 Airport Manager 55.9063 9,690 58.6984 10,174 61.6343 10,683 64.7135 11,217 67.9523 11,778 71.3588 12,369 15 15.2015 Accountant Auditor 36.9902 6,412 38.8439 6,733 40.7897 7,070 42.8273 7,423 44.9713 7,795 47.2212 8,185 15 15.1717 Asst Community Development Dir 70.6393 12,244 74.1754 12,857 77.8882 13,501 81.7846 14,176 85.8730 14,885 90.1612 15,628 15 15.5002 Asst PW Director/City Engineer 76.2938 13,224 80.1085 13,885 84.1140 14,580 88.3198 15,309 92.7358 16,074 97.3725 16,878 15 15.5021 Associate Engineer 49.9508 8,658 52.4492 9,091 55.0719 9,546 57.8272 10,023 60.7147 10,524 63.7502 11,050 15 15.3021 Associate Planner 43.5610 7,551 45.7404 7,928 48.0286 8,325 50.4333 8,742 52.9552 9,179 55.6013 9,638 15 15.3107 Chief Building Official 63.4613 11,000 66.6362 11,550 69.9707 12,128 73.4651 12,734 77.1424 13,371 81.0035 14,041 15 15.5003 City Engineer 70.6393 12,244 74.1754 12,857 77.8882 13,501 81.7846 14,176 85.8730 14,885 90.1612 15,628 15 15.3104 Code Enforcement Manager 51.9496 9,005 54.5500 9,455 57.2783 9,928 60.1425 10,425 63.1420 10,945 66.3011 11,492 15 15.3031 Community Dev Analyst 42.1057 7,298 44.2149 7,664 46.4252 8,047 48.7524 8,450 51.1885 8,873 53.7488 9,316 15 15.6007 Community Education Manager 43.5811 7,554 45.7669 7,933 48.0566 8,330 50.4578 8,746 52.9865 9,184 55.6354 9,643 15 15.1146 Community Safety Administrator 47.8252 8,290 50.2104 8,703 52.7313 9,140 55.3639 9,596 58.1321 10,076 61.0359 10,580 15 15.6101 Community Services Manager 45.3202 7,856 47.5859 8,248 49.9711 8,662 52.4682 9,094 55.0925 9,549 57.8450 10,026 15 15.2108 Computer Systems Administrator 57.5471 9,975 60.4267 10,474 63.4466 10,997 66.6143 11,546 69.9532 12,125 73.4477 12,731 15 15.5026 Construction Inspector Supv 45.0970 7,817 47.3544 8,208 49.7238 8,619 52.2127 9,050 54.8213 9,502 57.5578 9,977 15 15.4028 Crime Analyst 45.0863 7,815 47.3437 8,206 49.7097 8,616 52.2004 9,048 54.8074 9,500 57.5471 9,975 15 15.4017 Criminalist 56.5429 9,801 59.3758 10,292 62.3375 10,805 65.4580 11,346 68.7377 11,915 72.1690 12,509 15 15.5010 Deputy City Engineer 63.4613 11,000 66.6362 11,550 69.9707 12,128 73.4651 12,734 77.1424 13,371 81.0035 14,041 15 15.6001 Deputy Librarian 56.9913 9,878 59.8393 10,372 62.8308 10,891 65.9738 11,435 69.2767 12,008 72.7389 12,608 15 15.5382 Facilities Maintenance Manager 51.9496 9,005 54.5500 9,455 57.2783 9,928 60.1425 10,425 63.1420 10,945 66.3011 11,492 15 15.5336 Fleet Maintenance Manager 51.9496 9,005 54.5500 9,455 57.2783 9,928 60.1425 10,425 63.1420 10,945 66.3011 11,492 15 15.5016 GIS Administrator 51.4469 8,917 54.0238 9,364 56.7202 9,832 59.5520 10,322 62.5358 10,840 65.6548 11,380 15 15.3027 Homeless Services Manager 55.3367 9,592 58.0996 10,071 61.0104 10,575 64.0535 11,103 67.2601 11,658 70.6301 12,243 15 15.2101 Information Systems Manager 60.4376 10,476 63.4613 11,000 66.6362 11,550 69.9707 12,128 73.4651 12,734 77.1424 13,371 15 15.3017 Inspection Services Manager 59.5520 10,322 62.5358 10,840 65.6548 11,380 68.9417 11,950 72.3959 12,549 76.0096 13,175 15 15.2111 Integration/Applications Admin 57.5471 9,975 60.4267 10,474 63.4466 10,997 66.6143 11,546 69.9532 12,125 73.4477 12,731 15 15.3014 Investigative Specialist 34.1186 5,914 35.8260 6,210 37.6205 6,521 39.5022 6,847 41.4785 7,190 43.5522 7,549 15 15.5384 Maintenance Manager 51.9496 9,005 54.5500 9,455 57.2783 9,928 60.1425 10,425 63.1420 10,945 66.3011 11,492 15 15.4030 Management Analyst 45.5224 7,891 47.7951 8,284 50.1921 8,700 52.7062 9,136 55.3367 9,592 58.0996 10,071 15 15.2106 Network/Sys Administrator 57.5471 9,975 60.4267 10,474 63.4466 10,997 66.6143 11,546 69.9532 12,125 73.4477 12,731 15 15.5423 NPDES Permit Manager 51.4469 8,917 54.0238 9,364 56.7202 9,832 59.5520 10,322 62.5358 10,840 65.6548 11,380 15 15.5301 Park Operations Manager 51.9496 9,005 54.5500 9,455 57.2783 9,928 60.1425 10,425 63.1420 10,945 66.3011 11,492 15 15.3108 Permit Analyst 36.7050 6,362 38.5360 6,680 40.4686 7,015 42.4959 7,366 44.6206 7,734 46.8517 8,121 15 15.3105 Permit Center Coordinator 42.3128 7,334 44.4346 7,702 46.6606 8,088 48.9901 8,492 51.4469 8,917 54.0238 9,364 15 15.3117 Plan Check Engineer 49.4518 8,572 51.9245 9,000 54.5207 9,450 57.2467 9,923 60.1091 10,419 63.1145 10,940 15 15.3001 Planning Manager 59.5520 10,322 62.5358 10,840 65.6548 11,380 68.9417 11,950 72.3959 12,549 76.0096 13,175 15 15.1171 Police Records Coordinator 42.3128 7,334 44.4346 7,702 46.6606 8,088 48.9901 8,492 51.4469 8,917 54.0238 9,364 15 15.1111 Police Services Administrator 55.3367 9,592 58.0996 10,071 61.0104 10,575 64.0535 11,103 67.2601 11,658 70.6301 12,243 15 15.1151 Pub Works Admin Supv 46.6606 8,088 48.9901 8,492 51.4469 8,917 54.0238 9,364 56.7202 9,832 59.5520 10,322 15 15.6105 Recreation-Parks Superintendent 56.9913 9,878 59.8393 10,372 62.8308 10,891 65.9738 11,435 69.2767 12,008 72.7389 12,608 15 15.2016 Senior Accountant 40.6892 7,053 42.7283 7,406 44.8687 7,777 47.1099 8,166 49.4684 8,575 51.9433 9,004 15 15.2021 Senior Buyer 41.7063 7,229 43.7965 7,591 45.9903 7,972 48.2876 8,370 50.7051 8,789 53.2420 9,229 15 15.5011 Senior Civil Engineer 59.2729 10,274 62.2326 10,787 65.3439 11,326 68.6143 11,893 72.0448 12,488 75.6507 13,113 15 15.3111 Sr Code Enforcement Officer 45.0970 7,817 47.3544 8,208 49.7238 8,619 52.2127 9,050 54.8213 9,502 57.5578 9,977 15 15.3013 Sr Community Development Analyst 46.6606 8,088 48.9901 8,492 51.4469 8,917 54.0238 9,364 56.7202 9,832 59.5520 10,322 15 15.1137 Sr Economic Development Manager 61.6996 10,695 64.7788 11,228 68.0207 11,790 71.4188 12,379 74.9931 12,999 78.7438 13,649 15 15.6011 Senior Librarian 43.3737 7,518 45.5438 7,894 47.8252 8,290 50.2104 8,703 52.7313 9,140 55.3639 9,596 15 15.3011 Senior Planner 51.4469 8,917 54.0238 9,364 56.7202 9,832 59.5520 10,322 62.5358 10,840 65.6548 11,380 15 15.3077 Stormwater Compliance Inspector 40.6892 7,053 42.7283 7,406 44.8687 7,777 47.1099 8,166 49.4684 8,575 51.9433 9,004 15 15.5451 Street Maintenance Manager 51.9496 9,005 54.5500 9,455 57.2783 9,928 60.1425 10,425 63.1420 10,945 66.3011 11,492 15 15.5446 Supt of Maintenance Services 56.9913 9,878 59.8393 10,372 62.8308 10,891 65.9738 11,435 69.2767 12,008 72.7389 12,608 15 15.5442 Sustainability Analyst 50.1921 8,700 52.7062 9,136 55.3367 9,592 58.0996 10,071 61.0104 10,575 64.0535 11,103 15 15.6006 Technical Services Manager 43.5811 7,554 45.7669 7,933 48.0566 8,330 50.4578 8,746 52.9865 9,184 55.6354 9,643 15 15.5008 Traffic Engineer 59.2729 10,274 62.2326 10,787 65.3439 11,326 68.6143 11,893 72.0448 12,488 75.6507 13,113 15 15.5416 Wastewater Manager 51.9496 9,005 54.5500 9,455 57.2783 9,928 60.1425 10,425 63.1420 10,945 66.3011 11,492 Page | 8
Benefit
Group Grade Position
Step 1
Hourly
Step 1
Monthly
Step 2
Hourly
Step 2
Monthly
Step 3
Hourly
Step 3
Monthly
Step 4
Hourly
Step 4
Monthly
Step 5
Hourly
Step 5
Monthly
Step 6
Hourly
Step 6
Monthly
23 23.5341 Equipment Mechanic Crew Sup 42.1001 7,297 44.2039 7,662 46.4211 8,046 48.7433 8,449 51.1789 8,871 53.7439 9,316 24 24.5381 Facility Maint Mech Crew Sup 42.1001 7,297 44.2039 7,662 46.4211 8,046 48.7433 8,449 51.1789 8,871 53.7439 9,316 23 23.5456 P.S. Maint Crew Supv 42.1001 7,297 44.2039 7,662 46.4211 8,046 48.7433 8,449 51.1789 8,871 53.7439 9,316 24 24.5311 Park Maint Crew Supvsr 42.1001 7,297 44.2039 7,662 46.4211 8,046 48.7433 8,449 51.1789 8,871 53.7439 9,316 23 23.5306 Urban Forestry Crew Supv 42.1001 7,297 44.2039 7,662 46.4211 8,046 48.7433 8,449 51.1789 8,871 53.7439 9,316 23 24.5711 Wastewater Crew Sup 42.1001 7,297 44.2039 7,662 46.4211 8,046 48.7433 8,449 51.1789 8,871 53.7439 9,316

CREW SUPERVISORS
SEIU
Benefit
Group Grade Position
Step 1
Hourly
Step 1
Monthly
Step 2
Hourly
Step 2
Monthly
Step 3
Hourly
Step 3
Monthly
Step 4
Hourly
Step 4
Monthly
Step 5
Hourly
Step 5
Monthly
Step 6
Hourly
Step 6
Monthly
25 25.5317 Airport Maintenance Worker 25.2203 4,372 26.4855 4,591 27.8137 4,821 29.2049 5,062 30.6666 5,316 32.1914 5,580 25 25.5376 Airport Operations Supv 40.8917 7,088 42.9349 7,442 45.0884 7,815 47.3440 8,206 49.7097 8,616 52.2011 9,048 25 25.5411 Community Facilities Service Wkr 23.2161 4,024 24.3792 4,226 25.5896 4,436 26.8708 4,658 28.2225 4,892 29.6293 5,136 25 25.4017 Emergency Vehicle Upfitter 34.8273 6,037 36.5663 6,338 38.3958 6,655 40.3163 6,988 42.3270 7,337 44.4464 7,704 25 25.5361 Equipment Inventory Tech 29.0636 5,038 30.5174 5,290 32.0342 5,553 33.6376 5,831 35.3274 6,123 37.0877 6,429 25 25.5366 Equipment Mechanic I 27.4130 4,752 28.7804 4,989 30.2190 5,238 31.7278 5,499 33.3152 5,775 34.9816 6,063 25 25.5356 Equipment Mechanic II 30.2190 5,238 31.7278 5,499 33.3152 5,775 34.9816 6,063 36.7263 6,366 38.5652 6,685 25 25.5396 Facility Maint Mechanic 26.8708 4,658 28.2225 4,892 29.6293 5,136 31.1068 5,392 32.6631 5,662 34.2976 5,945 25 25.5401 Facility Maint Worker 25.2203 4,372 26.4855 4,591 27.8137 4,821 29.2049 5,062 30.6666 5,316 32.1914 5,580 25 25.5398 Graffiti Abatement Worker 24.8588 4,309 26.1005 4,524 27.4130 4,752 28.7804 4,989 30.2190 5,238 31.7278 5,499 25 25.5466 Inmate Crew Coordinator 31.5705 5,472 33.1502 5,746 34.8086 6,033 36.5454 6,335 38.3689 6,651 40.2945 6,984 25 25.5481 Motor Sweeper Operator 28.6391 4,964 30.0693 5,212 31.5705 5,472 33.1502 5,746 34.8086 6,033 36.5454 6,335 25 25.5499 Neighborhood Svcs Worker 23.3261 4,043 24.4895 4,245 25.7154 4,457 27.0042 4,681 28.3561 4,915 29.7708 5,160 25 25.5331 Park Maintenance Worker 25.2203 4,372 26.4855 4,591 27.8137 4,821 29.2049 5,062 30.6666 5,316 32.1914 5,580 25 25.4081 Public Safety Facilities Worker 23.2161 4,024 24.3792 4,226 25.5896 4,436 26.8708 4,658 28.2225 4,892 29.6293 5,136 25 25.5496 Public Service Maint Wkr I 23.3261 4,043 24.4895 4,245 25.7154 4,457 27.0042 4,681 28.3561 4,915 29.7708 5,160 25 25.5491 Public Service Maint Wkr II 25.7154 4,457 27.0042 4,681 28.3561 4,915 29.7708 5,160 31.2564 5,418 32.8202 5,689 25 25.5486 Public Service Maint Wkr III 28.6391 4,964 30.0693 5,212 31.5705 5,472 33.1502 5,746 34.8086 6,033 36.5454 6,335 25 25.5471 Public Service Maint Wkr IV 31.5705 5,472 33.1502 5,746 34.8086 6,033 36.5454 6,335 38.3689 6,651 40.2945 6,984 25 25.5477 Pub Works Resource Coordinator 31.5705 5,472 33.1502 5,746 34.8086 6,033 36.5454 6,335 38.3689 6,651 40.2945 6,984 25 25.5351 Pump Maint Mechanic 30.2190 5,238 31.7278 5,499 33.3152 5,775 34.9816 6,063 36.7263 6,366 38.5652 6,685 25 25.5391 Senior Airport Technician 30.2190 5,238 31.7278 5,499 33.3152 5,775 34.9816 6,063 36.7263 6,366 38.5652 6,685 25 25.5476 SL/Traffic Signal Tech 28.6391 4,964 30.0693 5,212 31.5705 5,472 33.1502 5,746 34.8086 6,033 36.5454 6,335 25 25.5406 Sr Comm Facilities Svc Wk 24.8588 4,309 26.1005 4,524 27.4130 4,752 28.7804 4,989 30.2190 5,238 31.7278 5,499 25 25.5479 Senior Equipment Mechanic 34.8273 6,037 36.5663 6,338 38.3958 6,655 40.3163 6,988 42.3270 7,337 44.4464 7,704 25 25.5386 Sr Facility Maint Mech 30.2190 5,238 31.7278 5,499 33.3152 5,775 34.9816 6,063 36.7263 6,366 38.5652 6,685 25 25.5377 Sr Park Maintenance Worker 30.5174 5,290 32.0342 5,553 33.6376 5,831 35.3274 6,123 37.0877 6,429 38.9426 6,750 25 25.5357 Sr Pump Maintenance Mechanic 34.8273 6,037 36.5663 6,338 38.3958 6,655 40.3163 6,988 42.3270 7,337 44.4464 7,704 25 25.5316 Sr Urban Forestry Worker 30.5174 5,290 32.0342 5,553 33.6376 5,831 35.3274 6,123 37.0877 6,429 38.9426 6,750 25 25.4076 Sr Vehicle Maint Asst 25.1025 4,351 26.3599 4,569 27.6803 4,798 29.0636 5,038 30.5174 5,290 32.0342 5,553 25 25.5437 Sr. Wastewater Operator 34.8273 6,037 36.5663 6,338 38.3958 6,655 40.3163 6,988 42.3270 7,337 44.4464 7,704 25 25.5326 Urban Forestry Worker I 26.1005 4,524 27.4130 4,752 28.7804 4,989 30.2190 5,238 31.7278 5,499 33.3152 5,775 25 25.5321 Urban Forestry Worker II 27.6803 4,798 29.0636 5,038 30.5174 5,290 32.0342 5,553 33.6376 5,831 35.3274 6,123 25 25.5436 Wastewater Operator 29.4878 5,111 30.9654 5,367 32.5058 5,634 34.1326 5,916 35.8381 6,212 37.6301 6,523 25 25.5435 Wastewater Operator-In-Training 25.7154 4,457 27.0042 4,681 28.3560 4,915 29.7708 5,160 31.2565 5,418 32.8201 5,689 Page | 9
SMEA
Benefit
Group Grade Position
Step 1
Hourly
Step 1
Monthly
Step 2
Hourly
Step 2
Monthly
Step 3
Hourly
Step 3
Monthly
Step 4
Hourly
Step 4
Monthly
Step 5
Hourly
Step 5
Monthly
Step 6
Hourly
Step 6
Monthly
26 26.7046 Administrative Aide 27.9308 4,841 29.3247 5,083 30.7921 5,337 32.3328 5,604 33.9470 5,884 35.6416 6,178 26 26.7001 Administrative Analyst I 33.6167 5,827 35.2968 6,118 37.0648 6,425 38.9138 6,745 40.8653 7,083 42.9125 7,438 26 26.7091 Administrative Clerk I 18.3638 3,183 19.2809 3,342 20.2419 3,509 21.2618 3,685 22.3181 3,868 23.4341 4,062 26 26.7086 Administrative Clerk II 19.2809 3,342 20.2419 3,509 21.2618 3,685 22.3181 3,868 23.4341 4,062 24.6058 4,265 26 26.7041 Administrative Secretary 27.9308 4,841 29.3247 5,083 30.7921 5,337 32.3328 5,604 33.9470 5,884 35.6416 6,178 26 26.4071 Animal Care Tech 24.1231 4,181 25.3335 4,391 26.6028 4,611 27.9308 4,841 29.3247 5,083 30.7921 5,337 26 26.4056 Animal Control Officer 25.5903 4,436 26.8669 4,657 28.2097 4,890 29.6183 5,134 31.1001 5,391 32.6557 5,660 26 26.4046 Animal Services Supv 29.6183 5,134 31.1001 5,391 32.6557 5,660 34.2843 5,943 36.0012 6,240 37.7985 6,552 26 26.4086 Animal Servs Office Asst 21.5698 3,739 22.6484 3,926 23.7783 4,122 24.9669 4,328 26.2141 4,544 27.5272 4,771 26 26.5031 Assistant Engineer 39.3025 6,812 41.2688 7,153 43.3303 7,511 45.5021 7,887 47.7766 8,281 50.1682 8,696 26 26.3041 Assistant Planner 36.7054 6,362 38.5469 6,681 40.4765 7,016 42.5011 7,367 44.6292 7,736 46.8594 8,122 26 26.3126 Bldg Permit Spec 36.1772 6,271 37.9893 6,585 39.8895 6,914 41.8852 7,260 43.9834 7,624 46.1771 8,004 26 26.2123 Business Systems Analyst 36.9859 6,411 38.8267 6,730 40.7657 7,066 42.8030 7,419 44.9516 7,792 47.2051 8,182 26 26.3151 Code Enforcement Officer I 32.8170 5,688 34.4531 5,972 36.1772 6,271 37.9893 6,585 39.8895 6,914 41.8852 7,260 26 26.3136 Code Enforcement Officer II 36.0012 6,240 37.7985 6,552 39.6915 6,880 41.6797 7,224 43.7632 7,586 45.9569 7,966 26 26.3131 Comb Bldg Inspector II 36.0012 6,240 37.7985 6,552 39.6915 6,880 41.6797 7,224 43.7632 7,586 45.9569 7,966 26 26.3141 Combo Bldg Insp I 32.8170 5,688 34.4531 5,972 36.1772 6,271 37.9893 6,585 39.8895 6,914 41.8852 7,260 26 26.3051 Comm Improve Asst 28.7670 4,986 30.1977 5,234 31.7091 5,496 33.2939 5,771 34.9593 6,060 36.7054 6,362 26 26.3017 Community Outreach Assistant 28.7670 4,986 30.1977 5,234 31.7091 5,496 33.2939 5,771 34.9593 6,060 36.7054 6,362 26 26.7003 Community Safety Program Coord 33.6167 5,827 35.2968 6,118 37.0648 6,425 38.9138 6,745 40.8653 7,083 42.9125 7,438 26 26.4017 Community Service Aide 21.5698 3,739 22.6484 3,926 23.7783 4,122 24.9669 4,328 26.2141 4,544 27.5272 4,771 26 26.4066 Community Service Officer 25.5903 4,436 26.8669 4,657 28.2097 4,890 29.6183 5,134 31.1001 5,391 32.6557 5,660 26 26.5051 Construction Inspector 32.8170 5,688 34.4531 5,972 36.1772 6,271 37.9893 6,585 39.8895 6,914 41.8852 7,260 26 26.5071 Engineering Aide I 25.4585 4,413 26.7349 4,634 28.0702 4,865 29.4715 5,108 30.9460 5,364 32.4942 5,632 26 26.5066 Engineering Aide II 28.0702 4,865 29.4715 5,108 30.9460 5,364 32.4942 5,632 34.1155 5,913 35.8177 6,208 26 26.5431 Env Compliance Insp I 32.8170 5,688 34.4531 5,972 36.1772 6,271 37.9893 6,585 39.8895 6,914 41.8852 7,260 26 26.5426 Env Compliance Insp II 36.0012 6,240 37.7985 6,552 39.6915 6,880 41.6797 7,224 43.7632 7,586 45.9569 7,966 26 26.4607 Fire Inspector I 35.1414 6,091 36.9012 6,396 38.7435 6,716 40.6837 7,052 42.7217 7,405 44.8574 7,775 26 26.4608 Fire Inspector II 38.2514 6,630 40.1670 6,962 42.1723 7,310 44.2843 7,676 46.5026 8,060 48.8272 8,463 26 26.4035 Forensic Specialist I 32.8170 5,688 34.4531 5,972 36.1772 6,271 37.9893 6,585 39.8895 6,914 41.8852 7,260 26 26.4030 Forensic Specialist II 36.0012 6,240 37.7985 6,552 39.6915 6,880 41.6797 7,224 43.7632 7,586 45.9569 7,966 26 26.5058 GIS Analyst I 33.6167 5,827 35.2968 6,118 37.0648 6,425 38.9138 6,745 40.8653 7,083 42.9125 7,438 26 26.5057 GIS Analyst II 36.9859 6,411 38.8267 6,730 40.7657 7,066 42.8030 7,419 44.9516 7,792 47.2051 8,182 26 26.5047 GIS Analyst III 40.7657 7,066 42.8030 7,419 44.9516 7,792 47.2051 8,182 49.5654 8,591 52.0437 9,021 26 26.5064 GIS Technician I 25.2665 4,380 26.5243 4,598 27.8671 4,830 29.2428 5,069 30.7036 5,322 32.2365 5,588 26 26.5063 GIS Technician II 28.0702 4,865 29.4715 5,108 30.9460 5,364 32.4942 5,632 34.1155 5,913 35.8177 6,208 26 26.2130 Information Technologies Tech I 28.8156 4,995 30.2550 5,244 31.7671 5,506 33.3581 5,782 35.0222 6,071 36.7787 6,375 26 26.2128 Information Technologies Tech II 32.0172 5,550 33.6167 5,827 35.2968 6,118 37.0648 6,425 38.9138 6,745 40.8653 7,083 26 26.5036 Junior Engineer 35.6416 6,178 37.4246 6,487 39.3025 6,812 41.2688 7,153 43.3303 7,511 45.5021 7,887 26 26.6031 Librarian I 27.5272 4,771 28.9065 5,010 30.3444 5,260 31.8632 5,523 33.4553 5,799 35.1281 6,089 26 26.6026 Librarian II 29.6183 5,134 31.1001 5,391 32.6557 5,660 34.2843 5,943 36.0012 6,240 37.7985 6,552 26 26.6066 Library Aide 19.8603 3,442 20.8534 3,615 21.8960 3,795 22.9908 3,985 24.1403 4,184 25.34738 4,394 26 26.6025 Library Technology Coordinator 32.9656 5,714 34.6169 6,000 36.3449 6,300 38.1770 6,617 40.0767 6,947 42.0801 7,294 26 26.6056 Library Clerk 21.2618 3,685 22.3181 3,868 23.4335 4,062 24.6073 4,265 25.8377 4,479 27.12953 4,702 26 26.6071 Library Page 18.8172 3,262 19.7581 3,425 20.7459 3,596 21.7833 3,776 22.8724 3,965 24.01598 4,163 26 26.6051 Library Technician 21.8854 3,793 22.9785 3,983 24.1231 4,181 25.3335 4,391 26.6028 4,611 27.9308 4,841 26 26.6046 Literacy Asst 21.8854 3,793 22.9785 3,983 24.1231 4,181 25.3335 4,391 26.6028 4,611 27.9308 4,841 26 26.6061 Literacy Clerk 19.2809 3,342 20.2419 3,509 21.2618 3,685 22.3181 3,868 23.4335 4,062 24.6073 4,265 26 26.6041 Literacy Specialist 24.7262 4,286 25.9667 4,501 27.2679 4,726 28.6291 4,962 30.0579 5,210 31.5618 5,471 26 26.6106 Neighborhood Svcs Coord 33.6167 5,827 35.2968 6,118 37.0648 6,425 38.9138 6,745 40.8653 7,083 42.9125 7,438 26 26.2124 Network System Specialist 34.7876 6,030 36.5303 6,332 38.3525 6,648 40.2758 6,981 42.2933 7,331 44.4049 7,697 26 26.7081 Office Assistant 21.5698 3,739 22.6484 3,926 23.7783 4,122 24.9669 4,328 26.2141 4,544 27.5272 4,771 26 26.7061 Office Technician 25.5903 4,436 26.8669 4,657 28.2097 4,890 29.6183 5,134 31.1001 5,391 32.6557 5,660 26 26.3156 Permit Center Clerk 28.7670 4,986 30.1977 5,234 31.7091 5,496 33.2939 5,771 34.9593 6,060 36.7054 6,362 26 26.7067 Permit Services Technician 31.7091 5,131 33.2939 5,387 34.9593 5,657 36.7054 5,939 38.5407 6,236 40.4678 6,548 26 26.3121 Plan Checker I 37.4246 6,298 39.3025 6,614 41.2688 6,945 43.3302 7,292 45.5021 7,657 47.7766 8,040 26 26.3116 Plan Checker II 40.5500 7,029 42.6404 7,391 44.8334 7,771 47.1283 8,169 49.5487 8,588 52.0874 9,028 26 26.7076 Police Services Technician 25.4585 4,413 26.7349 4,634 28.0702 4,865 29.4715 5,108 30.9460 5,364 32.4942 5,632 26 26.7085 Print Shop Technician 25.4585 4,413 26.7349 4,634 28.0702 4,865 29.4715 5,108 30.9460 5,364 32.4942 5,632 26 26.3037 Project Coordinator 34.4531 5,972 36.1772 6,271 37.9893 6,585 39.8894 6,914 41.8852 7,260 43.9791 7,623 26 26.4068 Property/Evidence Supervisor 31.0641 5,384 32.6164 5,654 34.4179 5,966 36.1408 6,264 37.9488 6,578 39.8486 6,907 26 26.4061 Property/Evidence Technician 25.5903 4,436 26.8669 4,657 28.2097 4,890 29.6183 5,134 31.1001 5,391 32.6557 5,660 26 26.7026 Public Works Assistant 28.7670 4,986 30.1977 5,234 31.7091 5,496 33.2939 5,771 34.9593 6,060 36.7054 6,362 26 26.2051 Purchasing Technician 25.5903 4,436 26.8669 4,657 28.2097 4,890 29.6183 5,134 31.1001 5,391 32.6557 5,660 26 26.5061 PW Compliance Officer I 29.0385 5,033 30.4913 5,285 32.0172 5,550 33.6167 5,827 35.2968 6,118 37.0648 6,425 26 26.6121 Recreation Asst 23.4325 4,062 24.6041 4,265 25.8342 4,478 27.1260 4,702 28.4822 4,937 31.10261 5,391 26 26.6111 Recreation Coordinator 33.6167 5,827 35.2968 6,118 37.0648 6,425 38.9138 6,745 40.8653 7,083 42.9125 7,438 26 26.2048 Revenue Technician 26.9586 4,673 28.3005 4,905 29.7114 5,150 31.1913 5,406 32.7467 5,676 34.3847 5,960 26 26.7071 Secretary 21.5357 3,733 22.6484 3,926 23.7783 4,122 24.9669 4,328 26.2141 4,544 27.5272 4,771 26 26.7056 Senior Police Services Tech 25.5903 4,436 26.8669 4,657 28.2097 4,890 29.6183 5,134 31.1001 5,391 32.6557 5,660 26 26.6114 Senior Recreation Assistant 26.2182 4,544 27.5291 4,772 28.9055 5,010 30.3507 5,261 31.8683 5,524 34.80018 6,032 26 26.6116 Sports Program Asst 26.2182 4,544 27.5291 4,772 28.9055 5,010 30.3507 5,261 31.8683 5,524 34.80018 6,032 26 26.2056 Sr Accounting Clerk 24.4826 4,244 25.7149 4,457 26.9990 4,680 28.3489 4,914 29.7650 5,159 31.2543 5,417 26 26.2041 Sr Accounting Technician 29.4715 5,108 30.9460 5,364 32.4942 5,632 34.1155 5,913 35.8177 6,208 37.6154 6,520 26 26.5041 Sr Construction Inspector 35.1281 6,089 36.8815 6,393 38.7303 6,713 40.6673 7,049 42.7070 7,403 44.8417 7,773 26 26.6036 Sr Librarian Technician 24.1231 4,181 25.3335 4,391 26.6028 4,611 27.9308 4,841 29.3247 5,083 30.7921 5,337 26 26.4051 Sr Property/Evidence Technician 27.9308 4,841 29.3247 5,083 30.7921 5,337 32.3328 5,604 33.9470 5,884 35.6416 6,178 26 26.2046 Sr Purchasing Technician 29.4715 5,108 30.9460 5,364 32.4942 5,632 34.1155 5,913 35.8177 6,208 37.6154 6,520 26 26.3117 Stormwater Analyst 33.6167 5,827 35.2968 6,118 37.0648 6,425 38.9138 6,745 40.8653 7,083 42.9125 7,438 26 26.7005 Street Outreach Specialist 21.5698 3,739 22.6484 3,926 23.7783 4,122 24.9669 4,328 26.2141 4,544 27.5272 4,771 26 26.7036 Supervising Police Services Tech 29.3449 5,086 30.8093 5,340 32.3510 5,608 33.9697 5,888 35.6656 6,182 37.4458 6,491 26 26.2121 Telecom Svc Tech 36.0012 6,240 37.7985 6,552 39.6915 6,880 41.6797 7,224 43.7632 7,586 45.9569 7,966 26 26.4021 Victim Advocate 25.8398 4,479 27.1310 4,703 28.4883 4,938 29.9044 5,183 31.4010 5,443 32.9785 5,716 City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-265, Version: 1
Response to 2024-25 Civil Grand Jury Final Report
Approve a Resolution authorizing the Mayor to sign a letter responding to the 2024-2025 Monterey County Civil Grand Jury Final Report regarding “Road Safety in Monterey County: Where to Report a Problem.” City of Salinas Page 1 of 1 Printed on 6/26/2025
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Page | 1

CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: JULY 1, 2025
DEPARTMENT: ADMINISTRATION
FROM: LISA MURPHY, ASSISTANT CITY MANAGER

SOPHIA ROME, COMMUNITY RELATIONS MANAGER
TITLE: RESPONSE TO 2024-2025 MONTEREY COUNTY CIVIL GRAND

JURY FINAL REPORT
RECOMMENDED MOTION:

A motion to authorize the Mayor to sign a letter responding to the 2024-2025 Monterey County Civil Grand Jury Final Report titled “Road Safety in Monterey County: Where to Report a Problem.”
EXECUTIVE SUMMARY:

On April 28, 2025, the Monterey County Civil Grand Jury (CGJ) issued its final report titled “Road Safety in Monterey County: Where to Report a Problem.” The CGJ found that it is challenging for residents to determine where to report concerns regarding traffic safety, road maintenance, and/or road development projects throughout Monterey County. The City of Salinas (City) was asked to review and respond to Finding F6 and Recommendation R6. Staff has taken actions to update the City of Salinas’ website consistent with Recommendation R6 and has drafted the attached letter in response to the CGJ Final Report for the Council’s review and consideration for submission.

BACKGROUND:

The 2024-2025 CGJ received a complaint relating to an injury accident in Monterey County.

Through the CGJ investigation and research, it was determined that the County of Monterey, cities within the County and state agencies had different reporting mechanisms, which created confusion for residents. The City of Salinas (City) was identified as having a service request link on the homepage and a mobile application (SalinasCONNECT) for residents to report issues to the City.

However, in the CGJ Final Report, it was recommended that the City also make the SalinasCONNECT application prominent on the Public Works Department webpage, other department webpages and include promotion on the City’s social media pages.

After review of the City’s website, the SalinasCONNECT application was on the City’s homepage and some department and division pages. Based on the CGJ Report, staff has added a Quick Link section with a button labeled “Report an Issue (SalinasCONNECT)” to each City department webpage. The City periodically shares information how to report issues using SalinasCONNECT on social media as it relates to specific topics or service request types. Starting July 2025, staff Page | 2
will include regular recurring posts on the City’s social platform with information on how to use and where to access SalinasCONNECT.

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.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No.

STRATEGIC PLAN INITIATIVE:

This aligns with the City Council Strategic Goal of City Services focused on providing high quality customer service, engaging residents, and improving communication with the community.

DEPARTMENTAL COORDINATION:

City Administration coordinated with the Public Works to review the CGJ Final Report and with the City Attorney’s Office for review of the response.

FISCAL AND SUSTAINABILITY IMPACT:

There is no fiscal impact associated with the City Council’s consideration of this item.

Fund Appropriation Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 24-25
Operating
Budget Page
Last Budget
Action (Date,
Resolution)

N/A N/A N/A N/A N/A N/A N/A
ATTACHMENTS:

Draft Resolution
Draft Response to the 2024-2025 Civil Grand Jury Final Report Letter from Monterey County dated April 28, 2025
2024-2025 Civil Grand Jury Final Report on “Road Safety in Monterey County: Where to Report a Problem”
Page | 1
RESOLUTION NO. (N.C.S.)
RESPONSE TO 2024-2025 MONTEREY COUNTY CIVIL GRAND JURY FINAL REPORT
WHEREAS, On April 28, 2025, the Monterey County Civil Grand Jury (CGJ) issued its final report titled “Road Safety in Monterey County: Where to Report a Problem”; and WHEREAS, The CGJ found that it is challenging for residents to determine where to report concerns regarding traffic safety, road maintenance, and/or road development projects throughout Monterey County; and
WHEREAS, the Civil Grand Jury requested a response from the City of Salinas (City) to Finding F6 and Recommendation R6; and
WHEREAS, the actions to update the City’s website consistent with Recommendation R6 in the CGJ Final Report were taken.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council authorizes the Mayor to sign a letter responding to the 2024-2025 Monterey County Civil Grand Jury Final Report titled “Road Safety in Monterey County: Where to Report a Problem.” PASSED AND APPROVED this 1
st day of July 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
July __, 2025
The Honorable Judge Stephanie E. Hulsey
Judge of the Superior Court
c/o Office of the County Counsel
Attention: Sandra Ontiveros
168 W. Alisal Street, 3rd Floor
Salinas, CA 93901
RE: Response to 2024-2025 Monterey County Civil Grand Jury Final Report – Road Safety in Monterey County: Where to Report a Problem”
Dear Judge Hulsey:

This letter is the City of Salinas’ response to the Finding F6 and Recommendation R6 in the 2024-2025 Monterey County Civil Grand Jury Final Report entitled “Road Safety in Monterey County: Where to Report a Problem.” In the Final Report, the Civil Grand Jury overall made a total of nine Findings and eight Recommendations, with one Recommendation specific to the City of Salinas (City). As requested by the Civil Grand Jury, the City respectfully submits the following responses to the Findings and Recommendations identified for a response in the Final Report:

Finding F6
The availability of the Salinas, Soledad, and Monterey County uConnect mobile apps are largely unknown to the public, rendering them of little use.

Response to Finding F6
The City Council disagrees with this Finding to the extent it concludes that the “mobile apps are largely unknown to the public.” The City received 19,728 new service requests in the last 12-months through the Salinas Connect app. While this is an average of over 1,600 new requests per month, the City agrees that increased education, access and promotion of SalinasCONNECT would increase community awareness.

Recommendation R6
Monterey County and the cities of Salinas and Soledad promote their service request apps by prominently displaying information regarding their availability on the Public Works webpages, on other relevant pages of their websites, and through social media by 12/31/25.

The Honorable Judge Stephanie E. Hulsey
July __, 2025

Page 2 of 2 ends

Response to Recommendation R6
After review of the City’s website, the “Report an Issue” / SalinasCONNECT link is available on the City’s homepage as a quick action button, as well as on some department and division pages. However, it was not on the City’s Public Works Department page and was not consistently on all City Department webpages. Following the recommendations in the Final Report, the City has added a button on each department landing page.

Specific to social media, the City periodically informs residents on the use of SalinasCONNECT to submit service requests as it relates to certain topics or service request types. However, starting July 2025, City staff will include regular posts on the City’s social platforms with information on how to use and where to access SalinasCONNECT.

Thank you for the opportunity to respond to the Civil Grand Jury’s Report.

Respectfully submitted,
Dennis Donohue
Mayor
City of Salinas
cc: City Council
City Manager
City Attorney

ROAD SAFETY IN MONTEREY COUNTY:

WHERE TO REPORT A PROBLEM
Source: Photo of Fern Canyon Road, near Carmel Highlands, posted 2/13/25 on Monterey County Facebook page. The road was subsequently closed.

SUMMARY
From time to time, all drivers in Monterey County have observed safety and maintenance issues with the roads. Should they wish to report a potentially hazardous condition, it is not always obvious which entity they should notify to express their concerns. Roads in Monterey County are owned and maintained by different jurisdictions, most often with overlapping responsibilities. Processes for road improvement projects and traffic safety are lengthy, complicated, and not easily understood. The public is often confused about which entity to contact regarding traffic safety concerns or road maintenance, and even 1 how to submit customer service requests. Each entity uses a different interface for gathering data regarding traffic safety and maintenance concerns. Forms to request service can be found on most entities’ websites but replies to the citizens filing the complaints are inconsistently handled.

The 2024-25 Civil Grand Jury (CGJ) received a complaint from a citizen regarding a major injury accident where the motorist was attempting a legal crossing of the road centerline into a highly trafficked driveway. A vehicle traveling in the same direction failed to stop and hit the stationary car. This resulted in hospitalization and surgery for the complainant.

The CGJ examined the citizen inquiry and follow-up processes for these entities:
 Transportation Agency for Monterey County (TAMC)
 California Department of Transportation (Caltrans)
 Monterey County Public Works Division (MCPWD) within the Public Works, Facilities, and Parks Department (MCPWFP).

Researching options for addressing this complaint, the CGJ discovered the public is largely unaware of where and how to submit a request for road improvements and traffic safety concerns. In its findings, the jury identified inconsistent reporting options and a lack of updated traffic collision information. This report will include the following recommendations:
 Publish information regarding the role of TAMC, Caltrans, and MCPWD.  Update the collision map on TAMC’s website thereby improving the public's awareness of challenging conditions and dangerous intersections.  Inform the public about Monterey County uConnect, a mobile device app providing information on a wide variety of topics, including reporting road and traffic concerns in the unincorporated areas of the County.

These simple measures will better inform the community and provide citizens with a sense of partnership with entities in improving our roads and highways. 2 BACKGROUND
The Civil Grand Jury (CGJ) began to investigate road safety and maintenance in Monterey County after receiving a complaint regarding a left-turn lane on a State highway in Monterey County. There is no left-turn pocket at that location, just the road centerline that has been the scene of multiple accidents. The investigation revealed that road safety projects such as the construction of turn lanes, protective turn pockets, traffic signals, or roundabouts are lengthy and complex processes. These projects involve private property issues, engineering studies, environmental impact, cooperation between jurisdictions, sufficient funding in a time of scarce resources, public hearings, hiring of skilled contractors, and, finally, breaking ground and beginning construction.

Many factors go into prioritizing which projects are funded. These include data regarding collisions and incidents. This information is difficult for the public to locate and compile.

Other considerations include grant awards, state funding, and voter approval of measures to fund jurisdictional improvements.

The CGJ also found confusion regarding which entity is responsible for which roads within Monterey County and how best to contact the correct public organization (State or local) regarding a road safety or maintenance concern.

The following entities are responsible for traffic safety in Monterey County and collaborate closely with local municipalities to complete of traffic projects. Each entity will be examined in further detail in later sections of this report.

TAMC
TAMC, Monterey County’s regional transportation planning agency, is a State-designated agency responsible for financial and logistical planning of transportation projects. The mission of TAMC is to “develop and maintain a multimodal transportation system that 3 enhances mobility, safety access, environmental quality, and economic activities in Monterey County”. TAMC is not responsible for road repairs or physical road enhancements. (tamcmonterey.org, Feb. 16, 2025)
Caltrans
Caltrans is responsible for more than 50,000 miles of highways and freeways in California. It also provides inter-city rail services, airports, and hospital heliports, and collaborates closely with local agencies. According to the Caltrans website, “Caltrans carries out its mission with six primary programs: Aeronautics, Highway Transportation, Mass Transportation, Transportation Planning, Administration and the Equipment Service Center. Caltrans’ vision is to achieve a thriving and connected California.” (dot.ca.gov, Feb. 16, 2025)
Monterey County Public Works Division
The mission of MCPWD is to promote economic vitality and enhance the quality of life for the citizens of Monterey County by providing safe and efficient public roads, bridges, and public facilities. MCPWD is responsible for road repair and construction of physical road enhancements on County roads. (countyofmonterey.gov/government/departments-iz/public-works-facilities-parks/ public-works) TAMC, Caltrans, and MCPWD, including each city within the county of Monterey, is the focus of this report, which includes the following information:
 How to submit a concern or a complaint
 Where to find up-to-date information about projects
 How to access mobile apps available for the unincorporated areas of Monterey County and two other cities within the county
4 METHODOLOGY
The Civil Grand Jury investigated road safety and maintenance in Monterey County. The CGJ interviewed knowledgeable representatives of several different entities and departments responsible for the topics under investigation. In addition, the CGJ gathered and analyzed internal documentation provided by some representatives. Jurors made field visits to relevant locations of interest to gain firsthand insights.

DISCUSSION
Many entities are responsible for road safety and maintenance in Monterey County. The chart below indicates which entity is responsible for which types of roads and services:

Entities Responsible for Road Maintenance and Repair
Entity Name Area of Responsibility State or Local Agency Public Works Department
of each city
Road safety and maintenance
within the various
municipalities of Monterey
County
Local - City
Monterey County Public
Works Division (MCPWD)
Road safety and maintenance
in the unincorporated areas of
Monterey County (see list of
areas below)
Local - County
California Department of
Transportation (Caltrans)
Road safety and maintenance
of State Highways in Monterey
County including Hwy 1, Hwy
101, Hwy 68, Hwy 156, State
Routes 218, 183
State
Transportation Agency for
Monterey County (TAMC)
Planning and funding major
road improvement projects
within Monterey County
Local - County
California Highway Patrol
(CHP)
Ensuring traffic laws are
enforced on California roads.

Also collects collision data
utilized by other entities
State
5 MCPWD is responsible for providing services to the following unincorporated communities:
 North County: Pajaro, Moss Landing, Las Lomas, Aromas, Elkhorn, Castroville and Prunedale
 Salinas Valley: Boronda, Spreckels, Toro Park, East Garrison, San Benancio, and Corral de Tierra
 Coastal Area: Carmel Valley, Cachagua, Big Sur
 South County: Chualar, Pine Canyon, Lockwood, Bradley, San Lucas, San Ardo Del Monte Forest is supported by Pebble Beach Corporation Road Department.

Public Works Departments within Each City in Monterey County Each of the 12 incorporated cities in Monterey County has its own public works department responsible for the safety and maintenance of that city’s roads. Many cities utilize an online portal on their websites for the public to submit information or concerns regarding traffic safety and maintenance issues. The table below identifies each city, its public works department website and phone number, and how to submit a request for service or report a problem.

How to Request Service or Report a Problem
Regarding Road Safety and/or Road Maintenance
City Name
Public Works Department
Phone Number
The Website Home Page
has a Link to Service
Request Form?
Mobile App Available to
Request Service or
Report a Problem? (Y/N)
Carmel
(831) 620-2070
Yes -- Link to the Form
Click: Report a Problem No
Del Rey Oaks
(831) 713-0171
(831) 394-8511
(emergency/safety issues)
No. It is on the Public
Works page.

Link to the Form
No
6 Gonzales
(831) 675-5000 (City Hall)
(outside of city business
hours call (831) 755-5111)
Yes -- Link to the Form
Click “Service Request” No
Greenfield
(831) 674-2635
Yes -- Link to the Form
Click “Report a Concern” No
King City
(831) 386-5927
Yes -- Link to the Form
Click “How Do I” No
Marina
(831) 884-1212
Yes -- Link to the Form
Click “Service Requests” No
Monterey
(831) 646-3920
Yes -- Link to the Form
Click “Service Requests” No
Pacific Grove
(831) 648-5722
Yes -- Link to the Form
Click “Service Request”
No
Salinas
(831) 758-7421
Yes -- Link to the Form
Click “Report an Issue”
Yes
The mobile app is called
SalinasConnect
Sand City
(831) 394-3054 No No
Seaside
(831) 899-6825
Yes -- Link to the Form
Click “SeeClickFix”
Yes
The mobile app is called
SeeClickFix*
Soledad
(831) 223-5176
Yes -- Link to the Form
Click “Report an Issue or a
suggestion”
Yes
The mobile app is called
It’s Happening in Soledad
Monterey County
(831) 755-4925 No
Yes
The mobile app is called
Monterey County
uConnect
Note: the links in this table were accurate as of March 20, 2025, and are shown in the Bibliography at the end of this report.
*SeeClickFix is only available to cities that subscribe to this third-party service. 7 Monterey County Public Works Division (MCPWD)
According to the Monterey County website, the Monterey County Public Works Division (MCPWD) provides services to ensure reasonable and safe road development, plan for future needs, manage infrastructure and County facilities, and protect natural resources.

Several divisions exist within MCPWD. The Public Works Division includes Divisions of Road and Bridge Engineering, Stormwater and Floodplain Management, Traffic Engineering, Road and Bridge Maintenance, and several other divisions. Members of the public who have a road traffic safety or maintenance concern regarding a road in the unincorporated areas of the County must call or email a request for service or call 911 in case of an emergency. MCPWD receives 3,000 to 4,000 customer service requests annually and logs them into a database.

Monterey County Service Requests, Calendar Year 2024
Source: Monterey County Public Works, Facilities, and Parks Department 8 Mobile Apps for Reporting Traffic Safety and Maintenance Concerns The CGJ identified three entities that utilize apps that can be downloaded to mobile devices: Cities of Soledad and Salinas as well as Monterey County. The Monterey County uConnect app may be used for reporting many different issues and has a wealth of other information in addition to reporting a concern.

Home page of Monterey County uConnect app
Source: Monterey County Public Works, Facilities, and Parks Department The home page of the app has a “Report Issue” button that opens a dropdown menu listing a range of issues related to road maintenance concerns in the unincorporated areas of the County including dead animals, debris removal, flooding, guardrail, illegal 9 parking, potholes, road repair, sign/signal/striping, streetlights, and tree/weed removal.

The app is an easy way for the public to report an issue while traveling in the unincorporated areas of the county. However, there is no reference to the Monterey County uConnect app on the MCPWD website. Further, it is not easy to find information about the Monterey County uConnect app on any of the County departments’ websites.

The Cities of Soledad and Salinas mobile apps function in a way similar to the Monterey County app for reporting road safety and maintenance issues.

Another app available for download to mobile devices is called SeeClickFix. The app, developed by an outside vendor, works with many municipalities throughout the U.S. to manage citizen reports regarding road safety and maintenance issues. The City of Seaside uses SeeClickFix as a mobile app and has incorporated it into its website. The CGJ is not aware of other vendors offering similar services. Many cities use the 311 referral system to report road safety issues. It functions similarly to the 211 system available in Monterey County for requesting information regarding social services.

California Department of Transportation (Caltrans)
According to its website, Caltrans manages more than 50,000 miles of California's highway and freeway lanes, provides inter-city rail services, permits more than 400 publicuse airports and special-use hospital heliports, and works with local agencies. Caltrans carries out its mission with six primary programs: Aeronautics, Highway Transportation, Mass Transportation, Transportation Planning, Administration, and the Equipment Service Center. California is divided into 12 districts, Monterey County is in District 5 along with San Benito, San Luis Obispo, Santa Cruz and Santa Barbara Counties. A total of 888 Caltrans employees are assigned to District 5.

Caltrans has a comprehensive customer service request portal on its website that is monitored and tracked. During the three-year period from February 2022 to February 2025, a total of 1,063 Customer Service Requests were received regarding State 10 highways in Monterey County according to documentation provided by Caltrans. The CGJ found that requesting parties routinely receive feedback regarding their inquiries.

Transportation Agency for Monterey County (TAMC)
TAMC is the state-designated regional transportation planning agency for Monterey County. It provides long-range planning and projections of future needs. TAMC’s mission is to develop and maintain a multimodal transportation system that enhances mobility, safety, access, environmental quality, and economic activities in Monterey County. TAMC achieves this by preparing extensive plan documents, with public input, and by applying for, receiving, and disbursing funds for transportation projects countywide. It does not “own” any roads in the county but works collaboratively with multiple jurisdictions who do own them.

Many factors go into prioritizing which projects are funded. Collision data is just one tool used to determine road safety improvement projects. Up-to-date information regarding collisions in Monterey County is difficult for the public to obtain because multiple agencies collect and analyze such data often in different ways. One such source is the Statewide Integrated Traffic Record System (SWITRS) that utilizes information gathered by the California Highway Patrol (CHP). Data are updated quarterly, most recently in December 2024, and is viewable on the Transportation Injury Mapping System (TIMS) published by UC Berkeley. One of the most comprehensive Collision Data Maps for Monterey County residents may be found on TAMC’s website, yet it has not been updated since 2018.

In 2023, it was announced that TAMC would receive $640,000 in federal funding to develop a Monterey County Vision Zero Plan, a comprehensive county-wide safety action plan developed in collaboration with partner agencies and other stakeholders to promote coordinated solutions to reduce fatalities and injuries due to traffic collisions in Monterey County. This funding could be used to update the Collision Data Map on TAMC’s website so that the public can find information regarding collisions in areas of interest. 11 According to officials at TAMC, its website receives few visits, and public participation at its meetings is sporadic. The Contact Us page invites the public to request meeting agendas, and the Public Outreach page invites the public to complete a survey asking questions about how people would prefer to be informed about TAMC’s activities. Only one response was received during the last two years. For the form to be more useful to both TAMC and the public, the survey could be expanded to include a section providing the opportunity to submit a concern about a road and/or traffic safety issue.

Public involvement is essential for the planning, safety, and maintenance of roads.

Monterey County residents and visitors benefit when it is easy for them to participate and report unsafe conditions.

A Curve in Carmel Valley Road
Source: Image by Parker Siebold, Monterey County Weekly 12 FINDINGS
It is unclear to the public which entity to contact with concerns regarding traffic safety, road maintenance, and/or road development projects, leading to confusion and frustration for the public.

F1. The cities of Del Rey Oaks and Sand City do not have links to an online service request on the home pages of their websites, making it difficult for citizens to report an issue.

F2. Sand City’s online public complaint form is tailored to complaints against a business or person. There is no separate service request form for reporting road safety or maintenance issues.

F3. The City of Pacific Grove appears to have a mobile app, but it is not available at the Apple App Store.

F4. The purpose of the SeeClickFix button on the home page of the City of Seaside’s website is unclear.

F5. MCPWD does not have an online “Request for Service” form on its website for road safety and repair issues, making it more difficult for the County residents to report a problem.

F6. The availability of the Salinas, Soledad, and Monterey County uConnect mobile apps are largely unknown to the public, rendering them of little use.

F7. The Collision Data Map on TAMC’s website was last updated in 2018 and does not provide up-to-date information for Monterey County residents.

F8. TAMC’s outreach survey could be made more useful to TAMC and the public by incorporating a section where the public may report unsafe traffic or road conditions.

F9. Caltrans, TAMC, and the Monterey County Department of Public Works collaborate effectively with local municipalities to complete road and traffic projects.

RECOMMENDATIONS
R1. The cities of Del Rey Oaks and Sand City add a link to the online service request form to the home pages of their websites by 7/31/25.
13 R2. Sand City amend its public complaint form to include requests for service regarding road safety and maintenance issues by 9/30/25.

R3. The City of Pacific Grove activate its mobile app on the Apple Store by 9/30/25.

R4. The City of Seaside rename the button on the home page from SeeClickFix to “Report an Issue” and reference the availability of the SeeClickFix mobile app by 7/31/25.

R5. Monterey County create a direct link to an electronic “Request for Service” form on its website for road repair or safety issues by 10/31/25.

R6. Monterey County and the cities of Salinas and Soledad promote their service request apps by prominently displaying information regarding their availability on the Public Works webpages, on other relevant pages of their websites, and through social media by 12/31/25.

R7. TAMC update the Collision Data Map to include data from 2018 to the present on its website by 12/31/25.

R8. TAMC expand the public outreach survey on its website to solicit public feedback and invite questions from the public regarding its plans and projects as well as traffic and road safety concerns by 9/30/25.

REQUEST FOR RESPONSES
The following responses are required pursuant to Penal Code Sections 933 and 933.05:

From the following governing bodies within 90 days of the publication of this report:
 Monterey County Board of Supervisors
o Findings: F5-F6, F9
o Recommendations: R5-R6
 Del Rey Oaks City Council
o Finding: F1
o Recommendation: R1
 Pacific Grove City Council
o Finding: F3
o Recommendation: R3
 Salinas City Council
o Finding: F6
14 o Recommendation: R6
 Sand City Council
o Findings: F1-F2
o Recommendations: R1-R2
 Seaside City Council
o Finding: F4
o Recommendation: R4
 Soledad City Council
o Finding: F6
o Recommendation: R6
 Transportation Agency for Monterey County (TAMC)
o Findings: F7-F9
o Recommendations: R7-R8

INVITED RESPONSES
From the following individuals:
 Director, Monterey County Public Works, Facilities, and Parks Department o Findings: F5-F6, F9
o Recommendations: R5-R6
 Executive Director, TAMC
o Findings: F7-F9
o Recommendations: R7-R8

DISCLAIMER
Two grand jurors recused themselves from all meetings and discussions regarding this report and abstained from voting for its approval.

Reports issued by the Grand Jury do not identify individuals interviewed. Penal Code section 929 requires that reports of the Civil Grand Jury not contain the name of any person or facts leading to the identity of any person who provides information to the Civil Grand Jury.
15 GLOSSARY & ACRONYMS
Caltrans California Department of Transportation
CGJ Civil Grand Jury
CHP California Highway Patrol
CSR Customer Service Request
MCPWFP Monterey County Public Works Facilities and Parks Department MCPWD Monterey County Public Works Division
SWITRS Statewide Integrated Traffic Record System
TAMC Transportation Agency for Monterey County
TIMS Transportation Injury Mapping System

BIBLIOGRAPHY
Caltrans Customer Service Request Portal
https://csr.dot.ca.gov/
Monterey County IT Department Webpage regarding Monterey County uConnect https://www.countyofmonterey.gov/government/departments-i-z/informationtechnology/uconnect Caltrans Facts, 2024
https://dot.ca.gov/-/media/dot-media/programs/research-innovation-systeminformation/documents/caltrans-fact-booklets/caltransfacts2024-a11y.pdf California Crash Reporting System (CCRS)
https://data.ca.gov/dataset/ccrs/resource/f775df59-b89b-4f82-bd3d8807fa3a22a0?filters=County%20Code%3A27 SeeClickFix App Information
https://pria-academy.org/ICT/pdf/Primer_SeeClickFix.pdf Safewise Website Regarding 311 Service
https://www.safewise.com/blog/what-is-311/
Open311
https://www.open311.org/learn/
16 211 Service in Monterey County
https://211montereycounty.org/
Transportation Injury Mapping System (TIMS) fatalities by county https://tims.berkeley.edu/summary.php
TAMC Collision Data Map 2013-2018
https://www.tamcmonterey.org/collision-data-map
County and City Public Works Service Request Links
Referenced in the “Report a Problem” Table
County of Monterey
https://www.countyofmonterey.gov/government/departments-i-z/public-works-facilitiesparks Carmel
https://ci.carmel.ca.us/contact
Del Rey Oaks
https://www.delreyoaks.org/publicworks/page/public-works-service-request Gonzales
https://gonzalesca.gov/service-request-form
Greenfield
https://ci.greenfield.ca.us/FormCenter/Miscellaneous-8/Citizen-Request-Form-76 King City
https://www.citizenserve.com/Portal/PortalController?Action=showGeneral&ctzPagePref ix=Portal_&installationID=367
Marina
https://www.cityofmarina.org/requesttracker.aspx
Monterey
https://www.mymontereyportal.org/submit-service-request Pacific Grove
https://pacificgroveca.qscend.com/311/request/add
Salinas
https://salinasca.qscend.com/311/request/add
Sand City
https://www.sandcity.org/contact-us/public-complaint-form 17 Seaside
https://seeclickfix.com/web_portal/LzEcqTL3af2AJMmzXZWiVD28/report/category Soledad
https://www.cityofsoledad.com/report-issue/
18 City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-266, Version: 1
Investment Policy Adoption
Approve a Resolution adopting the City of Salinas Investment Policy.

City of Salinas Page 1 of 1 Printed on 6/26/2025
powered by Legistar™
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CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: JULY 1, 2025
DEPARTMENT: FINANCE
FROM: SELINA ANDREWS, FINANCE DIRECTOR
TITLE: FY 2025-26 INVESTMENT POLICY
RECOMMENDED MOTION:

A motion to approve resolution adopting the recommended updates to the City of Salinas Investment Policy.

EXECUTIVE SUMMARY:

City of Salinas Investment Policy (Policy) Section 11.C requires the City’s investment policy to be reviewed at least annually and, as necessary, recommended changes adopted by the City Council. Following review by staff and consultation with the City’s investment advisor, Chandler Asset Management, staff recommends adoption of the recommended changes to the Investment Policy as reflected in the attachment to this staff report.

BACKGROUND:

The Finance Director and investment manager evaluate the Investment Policy (Exhibit A) on an annual basis and recommend updates based on legislative changes, investment management practices, changes in the bond market and economy, or to conform to national and state investment policy statutes and standards, with underlying policy objective of safety, liquidity, and yield.

The Policy is based on State of California Government Code Sections 53600 through 53609 and 53630 through 53686. These statutes, as well as recommended guidelines set forth by the Association of Public Treasurers of the United States and Canada, the California Municipal Treasurers Association and the Government Finance Officers Association, have aided City staff in policy review and development. The State laws and established guidelines encompass a broad array of allowable investments and investment standards to suit the different needs of California’s local agencies.

The Policy applies to the City’s Pooled Investment Portfolio and Bond Proceeds Portfolio. These portfolios encompass all funds under the oversight of the Finance Director, including the General Fund, Reserve Funds, Special Revenue Funds, Capital Project Funds, Debt Service Funds, Proprietary Funds, Trust and Agency Funds, and other funds that may be created as needed.

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There were two amendments to the Government Code Section 53601. The amendments clarify that the public agency investment’s term or remaining maturity is to be measured from the settlement date to final maturity. This modification necessitates a change to the City of Salinas Investment Policy.

Local funds:

Chapter 427, Statutes of 2022 (SB 1489), the Local Government Omnibus Act, amended Government Code sections related to the investment of surplus funds by county treasurers. This bill amended Government Code Section 53601 to clarify that a public agency investment’s term or remaining maturity is to be measured from the settlement date to final maturity. In addition, this code section was amended to prohibit the purchase of a security with a forward settlement date exceeding 45 days from the time of investment.

A provision of this bill also amended 53646(b)(1) to increase the timeline that the treasurer or chief fiscal officer has for presenting a quarterly report to the chief executive officer, the internal auditor, and the legislative body of the local agency by 15 days, from 30- to 45 days following the end of the quarter.

State Funds:

Chapter 126, Statutes of 2022 (AB 2332) amended Government Code sections related to eligible securities of the Pooled Money Investment Board (PMIB). This bill amended Government Code Section 16430(c) to broaden the type of security issued by the State of California that can be purchased by the Pooled Money Investment Board (PMIB) from bonds, notes and warrants to bonds, notes, and other obligations.

In addition, this bill amended Government Code Section 16430(d) to add a security of “a city and county” to the type of local government securities in which the state can invest and added a requirement that an eligible local government security shall have a rating within the top three ratings of a nationally recognized statistical rating organization. For a security issued by a foreign country that the International Monetary Fund lists as an advanced economy, this bill amended Government Code Section 16430(f) to add a requirement that the government of a foreign country submits to the jurisdiction of a federal or state court in the United States when disputes arise related to the investments. Lastly, this bill amended Government Code Section 16430(m) to add the European Bank for Reconstruction and Development and the European Investment Bank, to the list of eligible investments under this subsection of code.

Amendments to section 53646(b)(1) increase the timeline that the treasurer or chief fiscal officer has for presenting a quarterly report to the chief executive officer, the internal auditor, and the legislative body of the local agency by 15 days, from 30 to 45 days following the end of the quarter.

The amendment for State Funds does not apply to the City of Salinas.

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).

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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.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No.

STRATEGIC PLAN INITIATIVE:

Adoption of the Investment Policy achieves the City Council 2025 Strategic Goal of City Services.

DEPARTMENTAL COORDINATION:

This staff report was coordinated with the City Manager, City Attorney, and Finance.

FISCAL AND SUSTAINABILITY IMPACT:

There is no fiscal impact associated with adopting the Investment Policy.

Fund Appropriation Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 25-26
Operating
Budget Page
Last Budget
Action (Date,
Resolution)

N/A N/A N/A N/A N/A N/A N/A
ATTACHMENTS:

Resolution
Exhibit A – Investment Policy
1 RESOLUTION NO. (N.C.S.)
A RESOLUTION ADOPTING THE CITY’S INVESTMENT POLICY
WHEREAS, City of Salinas Investment Policy Section 11.C requires the City’s Investment Policy be reviewed at least annually and, as necessary, adopted by the City Council; and
WHEREAS, following review by City staff and consultation with the City’s investment advisor, Chandler Asset Management, staff recommends amendment of various sections of the Investment Policy.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Salinas adopts the City of Salinas Investment Policy as reflected in the attachment hereto.

PASSED AND APPROVED this 1
st day of July 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
______________________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
Attachments: Exhibit A. Investment Policy
Exhibit A
1 CITY OF SALINAS

INVESTMENT POLICY
1) PURPOSE
The purpose of this document is to establish policies and procedures to ensure effective and judicious management of the investments of the City of Salinas (“City”).

The City’s investment program will conform to this Investment Policy and all applicable federal and state legal requirements, including California Government Code (“Government Code”) Sections 16429.1 et seq. and 53600 et seq.

This Investment Policy replaces any previous investment policy or investment procedures of the City.
2) SCOPE
This Investment Policy applies to all financial assets and investment activities of the City and the Successor Agency with the following exception(s):

Proceeds of debt issuance shall be invested in accordance with the City’s general investment philosophy as set forth in this policy; however, such proceeds are invested in accordance with permitted investment provisions of their specific bond indentures.

Pooling of funds: Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping, and administration.

Investment income will be allocated to the various funds of the City based on their respective invested assets and in accordance with generally accepted accounting principles. 3) OBJECTIVES
The City has a fiduciary responsibility to maximize the productive use of all assets entrusted to its care and to invest and manage those public funds wisely and prudently. Therefore, the City shall strive to maintain the level of investment of all idle funds as near 100% as possible through projected cash flow determinations, investing in those investment vehicles deemed prudent and allowable under the laws of the State of California and the ordinances of the City of Salinas.

The objectives of the City’s investment program are, in order, safety, liquidity, and return.

1. Safety: Preservation of principal is the foremost objective of the City’s investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.
2 2. Liquidity: The City's investment portfolio shall remain sufficiently liquid to allow the City to meet all operating requirements which may be reasonably anticipated.

3. Return: The City’s investment portfolio shall be managed with the objective of attaining a market average rate of return through budgetary and economic cycles, taking into account the City’s safety constraints and liquidity requirements and state and local law, ordinances, and resolutions that restrict the placement of short-term funds. 4) PRUDENT INVESTOR STANDARD
Prudent Investor Standard: Management of the City’s investments is governed by the Prudent Investor Standard as set forth in Government Code Section 53600.3:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.

Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.” 5) PERFORMANCE EVALUATION
Investment performance is to be continually monitored and evaluated by the Finance Director.

The City’s primary portfolio performance will be measured against an objective index with similar attributes to the City’s portfolio.
6) DELEGATION OF AUTHORITY
Authority to manage the City’s investment program is derived from Government Code Section 53600 et seq. The City Council is responsible for the administration of this Investment Policy.

Pursuant to Section 12-5.1 of the Salinas Municipal Code, the City Council has delegated investment authority to the Finance Director. The City Council may renew the delegation of authority each year.

No person may engage in an investment transaction except as provided under the terms of the policy and the procedures established by the Finance Director.

The City may engage the services of one or more external investment managers to assist in the management of the City’s investment portfolio in a manner consistent with this Investment Policy and the City’s objectives. Such external managers may be granted discretion to 3 purchase and sell investment securities in accordance with this Investment Policy. In accordance with the Investment Advisors Act of 1940, managers must be registered with the Securities & Exchange Commission (SEC) before they can offer their securities in the public market.

The Treasurer and the delegated investment officers, acting in accordance with written procedures and this Investment Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.
7) ETHICS AND CONFLICTS OF INTEREST
Officers and employees involved in the investment process shall refrain from personal business activity that conflicts with proper execution of the investment program or impairs their ability to make impartial investment decisions. In addition, Charter section 8.1 prohibits officers and employees from being directly or indirectly interested in any contract, work or business, the consideration, price or profits of which are payable in whole or in part by the City and from being financially interested, directly or indirectly, in the granting of any franchise, right, or privilege.
8) SAFEKEEPING/CUSTODY, DELIVERY, AND COMPETITIVE TRANSACTIONS A. Third-Party Safekeeping: To protect against potential losses by collapse of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all securities owned by the City will be held in safekeeping by a third-party bank custodian, acting as agent for the City under the terms of a custody agreement executed by the bank and the City.

B. Delivery versus Payment: Settlement of all investment transactions will be completed on a delivery-versus-payment basis. All securities purchased or acquired shall be delivered to the City of Salinas by book entry, physical delivery, or by third party custodial agreement as required by Government Code Section 53601.

The only exception to the foregoing shall be depository accounts and securities purchases made with: (i) State of California’s Local Agency Investment Fund and other local government investment pools; (ii) non-negotiable certificates of deposit; and, (iii) money market mutual funds, since the purchased securities are not deliverable. Evidence of each these investments will be held by the City.

C. Competitive Transactions: All investment transactions will be conducted on a competitive basis which can be executed through a bidding process involving at least three separate brokers/financial institutions where applicable, or through the use of a nationally recognized trading platform.
4 9) DIVERSIFICATION
The City of Salinas will diversify its investments by security type and institution. It is the policy of the City of Salinas to diversify its investment portfolio. Assets shall be diversified to reduce the risk of loss resulting from over concentration of assets in a specific maturity, a specific issuer, or a specific class of securities. Diversification strategies shall be determined and revised periodically and approved by the City Manager and the City Council. In establishing specific diversification strategies, the following general policies and constraints shall apply:

A. Maturities selected shall provide for stability of income and liquidity.

B. Disbursement and payroll dates shall be covered through maturity investments and marketable securities.
10) INTERNAL CONTROL
The Finance Director shall establish a system of written internal controls to regulate the City’s investment activities, including the activities of any subordinate officials acting on behalf of the City.

The investment portfolio and all related transactions shall be reviewed and balanced to the appropriate general ledger accounts by Department of Finance Staff on a monthly basis.

An independent analysis by the City’s external auditor shall be conducted annually as part of the annual audit to review internal control, account activity, and compliance with the Government Code and with policies and procedures and reported to City Council. 11) REPORTING
A. The Finance Director shall submit to City Council a quarterly report of investment transactions.

B. The Finance Director shall render a quarterly investment report to the City Manager and City Council.

1. Except as provided in subsection 2, the quarterly report shall include the following information for each individual investment:
▪ type of investment instrument;
▪ issuer name;
▪ maturity date;
▪ par value;
5 ▪ book value (purchase price);
▪ current market value and the source of the valuation.

2. For investments placed in the State of California’s Local Agency Investment Fund; in FDIC-insured or fully collateralized demand deposit accounts, savings accounts, market rate accounts, time certificates of deposits, and other types of bank deposits in financial institutions located in California; in a county investment pool; or any combination of these, the Finance Director may provide the City Manager and City Council the most recent statement or statements received from these institutions in lieu of the information required by subsection 1 regarding investments in these institutions.

3. The quarterly report also shall (a) state compliance of the portfolio to the statement of Investment Policy, or manner in which the portfolio is not in compliance; (b) include a description of any of the City's funds, investments, or programs that are under the management of contracted parties, including lending programs; and (c) include a statement denoting the ability of the City to meet its expenditure requirements for the next six months, or provide an explanation as to why sufficient money shall, or may, not be available.

C. The Investment Policy shall be reviewed at least annually and, as necessary, adopted by the City Council to ensure its consistency with the overall objectives of safety, liquidity, and return, as well as its relevance to current law and financial and economic trends. 12) QUALIFIED BROKER DEALERS
Whenever practical, a competitive bid process will be used for the purchase and sale of investments. It shall be the City’s policy to execute investment transactions only with broker/dealers and financial institutions deemed eligible by the Finance Director or the City's Investment Advisor if applicable, will be used to place all investment purchases. 13) AUTHORIZED INVESTMENTS
All investments shall be made in accordance with Government Code Sections 16429.1 et seq. and 53600 et seq. Within the investments permitted by the Government Code, the City seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this Investment Policy and the Government Code, the more restrictive parameters will take precedence.

Where this section specifies a percentage limitation for a particular category of investment, that percentage is applicable only at the date of purchase. Where this section does not specify a limitation on the term or remaining maturity at the time of the investment, no investment shall be made in any security, other than a security underlying a repurchase agreement authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five (5) years. Any investment held at the time this Investment Policy is adopted 6 which does not meet the new policy guidelines may be held until maturity and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy.

A. United States Treasury, notes, bonds, bills, or certificates of indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries.

B. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. No more than 30% of the City's portfolio may be invested in any one federal agency. The maximum percent of agency callable securities in the portfolio will be 20%.

C. Registered state warrants or treasury notes or bonds of the State of California, including bonds payable solely out of revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state. The securities must be rated in a rating category of “A” or its equivalent or higher by a nationally recognized statistical rating organization (NRSRO). No more than 30% may be invested in this category in combination with registered treasury notes or bonds of any of the other 49 states. No more than 5% of the portfolio may be invested in any single issuer.

D. Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California. The securities must be rated in a rating category of “A” or its equivalent or higher by a NRSRO. No more than 30% may be invested in this category in combination with obligations of the State of California, as well as its political subdivisions. No more than 5% of the portfolio may be invested in any single issuer.

E. Bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. The securities must be rated in a rating category of “A” or its equivalent or higher by a NRSRO. No more than 30% may be invested in this category in combination with obligations of the State of California, as well as its political subdivisions. No more than 5% of the portfolio may be invested in any single issuer.

F. Repurchase Agreements collateralized with securities authorized under Government Code, maintained at a level of at least 102% of the market value of the repurchase agreement.

There are no limits on the dollar amount or percentage that the City may invest, provided that:
7 ▪ securities used as collateral for repurchase agreements will be delivered to an acceptable third-party custodian;
▪ repurchase agreements are subject to a master repurchase agreement between the City and the provider of the repurchase agreement. The master repurchase agreement will be substantially in the form developed by the Securities Industry and Financial Markets Association (SIFMA);
▪ the maximum maturity does not exceed ninety-two days.

G. Reverse repurchase agreements or securities lending agreements may be utilized only when all the following conditions are met:

1. the security to be sold on reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the City for a minimum of 30 days prior to sale;

2. the total of all reverse repurchase agreements and securities lending agreements on investments owned by the City does not exceed 20 percent of the market value of the portfolio;

3. the agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security;

4. funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counterparty by way of a reverse repurchase agreement or securities lending agreement shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security.

Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the City sells securities prior to purchase with a simultaneous agreement to repurchase the security may only be made upon prior approval of the City Council and shall only be made with primary dealers of the Federal Reserve Bank of New York or with a nationally or state-chartered bank that has or has had a significant banking relationship with the City. The City may not invest more than 20% of its portfolio in reverse repurchase agreements and must always match its maturities to the reinvestment.

H. Bankers’ acceptances, otherwise known as bills of exchange or time drafts, that are drawn on and accepted by a commercial bank. Purchases of bankers' acceptances shall not exceed 180 days’ maturity or 40% of the City’s surplus moneys that may be invested pursuant to this section. However, no more than 30% of the City’s surplus moneys may be invested in the bankers’ acceptances of any one commercial bank. Eligible bankers' acceptances are 8 restricted to issuing financial institutions with short-term paper rated in a rating category of “A-1” or its equivalent or higher by a NRSRO or long-term debt obligations rated in a rating category of “A” or its equivalent or higher by a NRSRO.

I. Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all the following conditions in either paragraph (1) or paragraph (2) below:

1. The entity meets the following criteria: (a) is organized and operating in the United States as a general corporation, (b) has total assets in excess of five hundred million dollars ($500,000,000), and (c) has debt other than commercial paper, if any, rated in a rating category of “A” or its equivalent or higher by a NRSRO.

2. The entity meets the following criteria: (a) is organized within the United States as a special purpose corporation, trust, or limited liability company, (b) has programwide credit enhancements, including, but not limited to, overcollateralization, letters of credit, or surety bonds. (c) has commercial paper rated “A-1” or its equivalent or higher by a NRSRO.

Eligible commercial paper shall have a maximum maturity of 270 days or less. The City may invest no more than 25% of its surplus moneys that may be invested pursuant to this section in eligible commercial paper, and the City may invest no more than 10% of its total investment assets in the commercial paper and the medium-term notes of any single issuer.

Under a provision sunsetting on January 1, 2026, no more than 40% of the City’s surplus moneys may be invested in commercial paper if the City’s investment assets under management are greater than $100,000,000. The City may invest no more than 5% of its total investment assets in any single issuer.

J. Medium-term notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subsection must be rated in a rating category of “A” or its equivalent or higher by a NRSRO. Purchases of mediumterm notes shall not exceed 30% of the City’s surplus moneysthat may be invested pursuant to this section, and the City may invest no more than 5% of its total investment assets in the commercial paper and the medium-term notes of any single issuer.

K. FDIC-insured or fully collateralized demand deposit accounts, savings accounts, market rate accounts, time certificates of deposits (TCDs) and other types of bank deposits in financial institutions located in California. The amount on deposit in any financial institution shall not exceed the shareholder’s equity. To be eligible to receive City deposits, the financial institution must have received a minimum overall satisfactory rating, under the Community Redevelopment Act, for meeting the credit needs of California Communities in its most recent evaluation. Bank deposits are required to be collateralized as specified under Government Code Section 53630 et. seq. The Treasurer, at his/her discretion, may waive the collateralization requirements for any portion that is covered by federal deposit insurance. The City shall have a signed agreement with any depository accepting City funds per Government Code Section 53649. There is no limit on the 9 percentage of the portfolio that may be invested in bank deposits. However, a maximum of 30 percent of the portfolio may be invested in TCDs.

L. Negotiable Certificates of Deposit issued by a nationally- or state-chartered bank or a state or federal savings and loan association, a state or federal credit union, or by a federally- or state-licensed branch of a foreign bank. Amounts of negotiable certificates of deposit insured up to the FDIC limit do not require a credit rating. Any amount above the FDIC insured limit must be issued by institutions with short-term debt obligations rated in a rating category of “A-1” or its equivalent or higher by at least one NRSRO, or long-term obligations rated in a rating category of “A” or its equivalent or higher by a NRSRO.

Purchases of negotiable certificates of deposit shall not exceed 30% of the City's surplus moneys that may be invested pursuant to this section. No more than 5% of the portfolio may be invested in any single issuer.

M. Certificates of deposit placed through a deposit placement service that meet the requirements under Government Code Section 53601.8. The full amount of each deposit placed and the interest that may accrue on each such deposit shall at all times be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration.

Purchases of certificates of deposit placed through a deposit placement service shall not, in total, exceed 30 percent of the City’s surplus moneys that may be invested pursuant to this section.

N. State of California’s Local Agency Investment Fund (LAIF). Investment in LAIF may not exceed the amount permitted by LAIF.

O. Shares of beneficial interest issued by a joint powers authority organized pursuant to Government Code Section 6509.7 that invests in the securities and obligations authorized in this section. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:

1. The adviser is registered or exempt from registration with the Securities and Exchange Commission.

2. The adviser has not less than five years of experience investing in the securities and obligations authorized in this section.

3. The adviser has assets under management in excess of five hundred million dollars ($500,000,000)
The underlying pool of securities of which the shares are purchased must be rated in a rating category of “AAAm” or its equivalent or higher by a NRSRO.

P. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the SEC under the Investment Company Act of 1940 (15 USC Sec. 80a-1, et seq.). The purchase price of shares shall not exceed 20 percent of the 10 investment portfolio of the City. To be eligible for investment pursuant to this subdivision, these companies shall have either:

1. attained the highest-ranking letter or numerical rating provided by not less than two of the three largest NRSRO or

2. retained an investment advisor registered or exempt from registration with the SEC with not less than five years’ experience managing money market mutual funds and with assets under management in excess of $500,000,000.

Q. A mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond. Securities eligible for investment under this subsection shall be rated in a rating category of “AA” or its equivalent or higher by an NRSRO. Purchase of securities authorized by this subsection shall not exceed 20 % of the City’s surplus moneys that may be invested pursuant to this section. The City may invest no more than 5% of its total investment assets in the asset-backed or commercial mortgage security of any single issuer.

R. Supranational obligations. Issues must be United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank and eligible for purchase and sale within the United States. The securities must be rated in a rating category of “AA” or its equivalent or higher by a NRSRO. No more than 30% of the City’s surplus moneys that may be invested pursuant to this section may be invested in this category. The City may invest no more than 10% of its total investment assets in the supranational obligations of any single issuer.
14) PROHIBITED INVESTMENTS
Any security type or structure not specifically approved by this policy is hereby specifically prohibited. Security types which are thereby prohibited include, but are not limited to, inverse floaters, derivatives, range notes, interest only strips that are derived from a pool of mortgages, or in any investment that could result in zero interest accrual if held to maturity. Under a provision sunsetting on January 1, 2026, securities backed by the US Government that could result in a zero- or negative-interest accrual if held to maturity are permitted. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.

Purchasing or selling securities on margin is prohibited. The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited. The purchase of foreign currency denominated securities is prohibited. Local governments that are not Qualified Institutional Buyers (QIB) as defined by the SEC are prohibited from purchasing Private Placement Securities. The SEC defines a QIB as having at least $100,000,000 in securities owned and invested. The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited. 11 15) INVESTMENT OF BOND PROCEEDS
Bond proceeds shall be invested in the securities permitted by the applicable bond documents. If the bond documents are silent as to the permitted investments, bond proceeds will be invested in the securities permitted by this policy. Notwithstanding the other provisions of this policy, the percentage or dollar portfolio limitations listed in elsewhere in this policy do not apply to bond proceeds. In addition to the securities listed in this Policy, bond proceeds may be invested in a structured investment product if approved by the Finance Director.
16) LEGISLATIVE CHANGES
Any State of California legislative action that further restricts allowable maturities, investment type or percentage allocations will be deemed to be incorporated into the City of Salinas’s investment policy and will supersede any and all applicable language. 17) INTEREST EARNINGS
All moneys earned and collected from investments authorized in this policy shall be allocated monthly to various fund accounts based on the pooled cash balance in each fund as a percentage of the entire pooled portfolio.

Exhibit A
12 Glossary
Agency: Federal agency securities and /or
Government-sponsored enterprises.

Bankers’ Acceptance (BA): A draft or bill
or exchange accepted by a bank or trust
company. The accepting institution
guarantees payment of the bill, as well as the
issuer.

Broker: A broker brings buyers and sellers
together for a commission.

California Local Government Debt: Is
bonds, notes, warrants, or other evidences of
indebtedness of any local agency within
California. California local government
debt is a permitted investment under the
California Government Code. The
Government Code does not specify
minimum credit ratings for local
government debt in which local agencies
may invest.

Certificate of Deposit (CD): A time
deposit with a specific maturity evidenced
by a certificate. Large-denomination CD’s
are typically negotiable.

Collateral: Securities, evidence of deposit
of other property which a borrower pledges
to secure repayment of a loan. Also refers to
securities pledged by a bank to secure
deposits of public monies.

Annual Comprehensive Financial Report
(ACFR): The official annual report for the
City of Salinas. It includes five combine
statements for each individual fund and
account group prepared in conformity with
GAAP. It also includes supporting
schedules necessary to demonstrate
compliance with finance-related legal and
contractual provisions, extensive
introductory material, and a detailed
Statistical Section.

Coupon: (a) The annual rate of interest that
a bond’s issuer promises to pay the
bondholder on the bond’s face value. (b) A
certificate attached to a bond evidencing
interest due on a payment date.

Dealer: A dealer, as opposed to a broker,
acts as a principal in all transactions, buying
and selling for his own account.

Debenture: A bond secured only by the
general credit of the issuer.

Delivery versus Payment: There are two
methods of delivery of securities: delivery
versus payment and delivery versus receipt.

Delivery versus payment is delivery of
securities with an exchange of money for the
securities. Delivery versus receipt is
delivery of securities with an exchange of a
signed receipt for the securities.

Derivatives: (1) Financial instruments
whose return profile is linked to, or derived
from, the movement of one or more
underlying index or security, and may
include a leveraging factor, or (2) financial
contracts based upon notional amounts
whose value is derived from an underlying
index or security (interest rates, foreign
exchange rates, equities or commodities).

Discount: The difference between the cost
price of a security and its maturity when
quoted at lower than face value. A security
selling below original offering price shortly
after sale also is considered to be at a
discount.
13 Diversification: Dividing investment funds
among a variety of securities offering
independent returns.

Federal Credit Agencies: Agencies of the
Federal government set up to supply credit
to various classes of institutions and
individuals, e.g., S&L’s, small business
firms, students, farmers, farm cooperatives,
and exporters.

Federal Deposit Insurance Corporation
(FDIC): A federal agency that insures bank
deposits, currently up to $250,000 per
deposit.

Federal Funds Rate: The rate of interest at
which Fed funds are traded. This rate is
currently pegged by the Federal Reserve
through open-market operations.

Federal Home Loan Banks (FHLB):

Government sponsored wholesale banks
(currently 12 regional banks) which lend
funds and provide correspondent banking
services to member commercial banks, thrift
institutions, credit unions and insurance
companies. The mission of the FHLB is to
liquefy the housing related assets of its
members who must purchase stock in their
district Bank.

Federal National Mortgage Association
(FNMA): FNMA, like GNMA was
chartered under the Federal National
Mortgage Association Act in 1938. FNMA
is a federal corporation working under the
auspices of the Department of Housing and
Urban Development (HUD). It is the largest
single provider of residential mortgage
funds in the United States. Fannie Mae, as
the corporation is called, is a private
stockholder-owned corporation. The
corporation’s purchases include a variety of
adjustable mortgages and second loans, in
addition to fixed-rate mortgages. FNMA’s
securities are also highly liquid and are
widely accepted. FNMA assumes and
guarantees that all security holders will
receive timely payment of principal and
interest.

Federal Open Market Committee
(FOMC): Consists of seven members of
the Federal Reserve Board and five of the
twelve Federal Reserve and Presidents. The
President of the New York Federal Reserve
Bank is a permanent member, while the
other Presidents serve on a rotating basis.

The Committee periodically meets to set
Federal Reserve guidelines regarding
purchases and sales of Government
Securities in the open market as a means of
influencing the volume of bank credit and
money.

Federal Reserve System: The central bank
of the United States created by Congress and
consisting of a seven-member Board of
Governors in Washington, D.C., 12 regional
banks and about 5,700 commercial banks
that are members of the system.

Government National Mortgage
Association (GNMA or Ginnie Mae):

Securities influencing the volume of bank
credit guaranteed by GNMA and issued by
mortgage bankers, commercial banks,
savings and loan associations, and other
institutions. Security holder is protected by
full faith and credit of the US Government.

Ginnie Mae securities are backed by the
FHA, VA or FmHA mortgages. The term
“pass-throughs” is often used to describe
Ginnie Maes.

Issuer: Any corporation, government unit
or financial institution which borrows
money through the sale of securities.

Liquidity: A liquid asset is one that can be
converted easily and rapidly into cash
14 without a substantial loss of value. In the
money market, a security is said to be liquid
if the spread between bid and asked prices is
narrow and reasonable size can be done at
those quotes.

Local Agency Investment Fund (LAIF):

A special fund in the State Treasury which
local agencies may use to deposit funds for
investment. All interest is distributed to
those agencies participating on a
proportionate share determined by the
amounts deposited and the length of time
they are deposited. Interest is paid quarterly
via direct deposit to the LAIF account. The
State keeps an amount for reasonable costs
of making the investments, not to exceed
one-quarter of one per cent of the earnings.

Local Government Investment Pool
(LGIP): The aggregate of all funds from
political subdivisions that are pooled
together for investment and reinvestment.

Market Value: The price at which a
security is trading and could presumably be
purchased or sold.

Master Repurchase Agreement: A written
contract covering all future transactions
between the parties to repurchase – reverse
repurchase agreements that establishes each
party’s rights in the transactions. A master
agreement will often specify, among other
things, the right of the buyer-lender to
liquidate the underlying securities in the
event of default by the seller-borrower.

Maturity: The date upon which the
principal or stated value of an investment
becomes due and payable.

Money Market: The market in which
short-term debt instruments (bills,
commercial paper, bankers’ acceptances,
etc.) are issued and traded.

Mutual Funds: Referred to in the
Government Code, Section 53601(l) as
“shares of beneficial interest issued by
diversified management companies.” The
Mutual Fund must be restricted by its bylaws to the same investments as the local agency by the Government Code. These
investments are Treasury issues, Federal
Agency issues, State of California and City
(within California) debt obligations, Bankers
Acceptances, Commercial Paper,
Certificates of Deposit, Negotiable
Certificates of Deposit, Repurchase
Agreements, Reverse Repurchase
Agreements, and Medium-Term Corporate
Notes. The quality rating and percentage
restrictions in each investment category
applicable to the local agency also apply to
the Mutual Fund.

Negotiable: Term used to designate a
security, the title to which is transferable by
delivery.

Offer: The price asked by a seller of
securities. (When you are buying securities,
you ask for an offer). See Asked and Bid.

Open Market Operations: Purchases and
sales of government and certain other
securities in the open market by the New
York Federal Reserve Bank as directed by
the FOMC in order to influence the volume
of money and credit in the economy.

Purchases inject reserves into the bank
system and stimulate growth of money and
credit; sales have the opposite effect. Open
market operations are the Federal Reserve’s
most important and most flexible monetary
policy tool.

Portfolio: Collection of securities held by
an investor.

Primary Dealer: A group of government
securities dealers who submit daily reports
15 of market activity and positions and monthly
financial statements to the Federal Reserve
Bank of New York and are subject to its
informal oversight. Primary dealers
included Securities & Exchange
Commission (SEC) – registered securities
broker-dealers, banks, and a few unregulated
firms.

Principal: Describes the original cost of a
security. It represents the amount of capital
or money which the investor pays for the
investment.

Prudent Person Rule: An investment
standard. In some states the law requires
that a fiduciary, such as a trustee, may invest
money only in a list of securities selected by
the custody state – the so-called legal list. In
other states the trustee may invest in a
security if it is one which would be bought
by a prudent person of discretion and
intelligence who is seeking a reasonable
income and preservation of capital.

Qualified Public Depositories: A financial
institution which does not claim exemption
from the payment of any sales or
compensating use or ad valorem taxes under
the laws of this state, which has segregated
for the benefit of the commission eligible
collateral having a value of not less than its
maximum liability and which has been
approved by the State to hold public
deposits.

Rate of Return: The yield obtainable on a
security based on its purchase price or its
current market price. This may be the
amortized yield to maturity on a bond the
current income return.

Repurchase Agreement (RP or Repo): A
holder of securities sells these securities to
an investor with an agreement to repurchase
them at a fixed price on a fixed date. The
security “buyer” in effect lends the “seller”
money for the period of the agreement, and
the terms of the agreement are structured to
compensate him for this. Dealers use RP
extensively to finance their positions.

Exception: When the Fed is said to be doing
RP, it is lending money, that is, increasing
bank services.

Safekeeping: A service to customers
rendered by banks for a fee whereby
securities and valuables of all types and
descriptions are held in the bank’s vaults for
protection.

Secondary Market: A market made for the
purchase and sale of outstanding issues
following the initial distribution.

Security: An investment instrument, other
than an insurance policy or fixed annuity,
issued by a corporation, government, or
other organization which offers evidence of
debt or equity.

Securities & Exchange Commission:

Agency created by Congress to protect
investors in securities transactions by
administering securities legislation.

SEC Rule 15C3-1: See Uniform Net
Capital Rule.

Structured Notes: Notes issued by
Government Sponsored Enterprises (FHLB,
FNMA, SLMA, etc.) and Corporations
which have imbedded options (e.g., call
features, step-up coupons, floating rate
coupons, derivative-based returns) into their
debt structure. Their market performance is
impacted by the fluctuation of interest rates,
the volatility of the imbedded options and
shifts in the shape of the yield curve.

Treasury Bills: A non-interest-bearing
discount security issued by the US Treasury
16 to finance the national debt. Most bills are
issued to mature in three months, six
months, or one year.

Treasury Notes: Medium-term couponbearing US Treasury securities issued as direct obligations of the US Government and
having initial maturities from two to ten
years.

Uniform Net Capital Rule: Securities &
Exchange Commission (SEC) requirement
that member firms as well as nonmember
broker-dealers in securities maintain a
maximum ratio of indebtedness to liquid
capital of 15 to 1; also called net capital rule
and net capital ratio. Indebtedness covers all
money owed to a firm, including margin
loans and commitments to purchase
securities, one reason new public issues are
spread among member of underwriting
syndicates. Liquid capital includes cash and
assets easily converted into cash.

Yield: The rate of annual income return on
an investment, expressed as a percentage.
(a) Income Yield is obtained by dividing the
current dollar income by the current market
price for the security. (b) Net Yield or
Yield to Maturity is the current income
yield minus any premium above par or plus
any discount from par in purchase price,
with the adjustment spread over the period
from the date of purchase to the date of
maturity of the bond.
17 CITY OF SALINAS

INVESTMENT GUIDELINES AND STRATEGY
I. GUIDELINES - Guidelines are established to direct and control activities in such a manner that previously established goals are achieved.

1. Investment Transaction. Every investment transaction must be authorized and reviewed by the Finance Director or his/her designee.

2. Pooled Cash. Whenever practical, local agency cash is consolidated into one bank account and invested on a pooled concept basis. Interest earnings are allocated monthly according to month-end cash and investment balances for each fund.

3. Competitive Bids. Purchase and sales of securities are made on the basis of competitive offers and bids when practical.

4. Cash Forecast. The cash flow for the City is analyzed with the receipt of revenues and maturity of investments scheduled so that adequate cash will be available to meet disbursement requirements.

5. Investment Limitations. Security purchases and holdings are maintained within statutory limits imposed by the California Government Code. Current limits are:

Bankers’ Acceptances 40% Section 53601(f)
Commercial Paper 25% Section 53601(g)
Negotiable Certificates of Deposit 30% Section 53601(h) Medium Term Notes 30% Section 53601(j)
Money Market Mutual Funds 20% Section 53601(k)
Asset-Backed/Mortgage-Backed Securities 20% Section 53601(n) Federal Agency restriction 60% per Agency Section 14 of Policy Local Agency Investment Fund $50,000,000 per Section 14 of Policy CAMP no limit per Section 14 of Policy
Portfolio Maturing within one year 20% per Section 14 of Policy

6. Liquidity. The marketability of a security is considered at the time of purchase, as the security may have to be sold at a later date to meet unanticipated cash demands.

7. Diversification. The portfolio should consist of a mix of various types of securities, issuers, and maturities.
18 CITY OF SALINAS

INVESTMENT GUIDELINES AND STRATEGY
(Continued)
II. STRATEGY - Strategy refers to the ability to manage financial resources in the most advantageous manner.

1. Economic Forecasts. Economic Forecasts are obtained periodically from economists and financial experts through bankers and brokers to assist the Finance Director or his/her designee with the formulation of an investment strategy for the local agency.

2. Implementing Investment Strategy. Investment transactions are executed which conform with anticipated interest rate trends and the current investment strategy plan.

3. Rapport. A close working relationship is maintained with large vendors of the city. The objective is to pinpoint when large disbursements will clear the city's bank account. It is essential for good cash control that such large expenditures be anticipated, estimated as to dollar amount, and communicated to the Finance Director or his/her designee for liquidity planning purposes.

4. Preserve Portfolio Value. Field standards are developed in order to maintain earnings near the market and to preserve the value of the portfolio. 19 CITY OF SALINAS

INVESTMENT PROCEDURES

INTERNAL CONTROL - GUIDELINES

OBJECTIVES OF INTERNAL CONTROL
Internal control is the plan of organization and all the related systems established by the management's objective of ensuring, as far as practicable:
 The orderly and efficient conduct of its business, including adherence to management policies.  The safeguarding of assets.
 The prevention or detection of errors and fraud.
 The accuracy and completeness of the accounting records.  The timely preparation of reliable financial information.

LIMITATIONS OF INTERNAL CONTROL
No internal control system, however elaborate, can by itself guarantee the achievement of management's objectives. Internal control can provide only reasonable assurance that the objectives are met, because of its inherent limitations, including:
 Management's usual requirement that a control be cost-effective.  The direction of most controls at recurring, rather than unusual, types of transactions.  Human error due to misunderstanding, carelessness, fatigue, or distraction.  Potential for collusion that circumvents controls dependent on the segregation of functions.  Potential for a person responsible for exercising control abusing that responsibility; a responsible staff member could be in a position to override controls which management has set up.
20 CITY OF SALINAS

INVESTMENT PROCEDURES

INTERNAL CONTROL - GUIDELINES
(Continued)

ELEMENTS OF INTERNAL CONTROL
Elements of a system of internal control are the means by which an organization can satisfy the objectives of internal control. These elements are:

1. ORGANIZATION
Specific responsibility for the performance of duties should be assigned and lines of authority and reporting clearly identified and understood.

2. PERSONNEL
Personnel should have capabilities commensurate with their responsibilities. Personnel selection and training policies together with the quality and quantity of supervision are thus important.

3. SEGREGATION OF FUNCTIONS
Segregation of incompatible functions reduces the risk that a person is in a position both to perpetrate and conceal errors or fraud in the normal course of duty. If two parts of a transaction are handled by different people, collusion is necessary to conceal errors or fraud.

In particular, the functions that should be considered when evaluating segregation of functions are authorization, execution, recording, custody of assets, and performing reconciliations.

4. AUTHORIZATION
All transactions should be authorized by an appropriate responsible individual. The responsibilities and limits of authorization should be clearly delineated. The individual or group authorizing a specific transaction or granting general authority for transactions should be in a position commensurate with the nature and significance of the transactions. Delegation of authority to authorize transactions should be handled very carefully.

5. CONTROLS OVER AN ACCOUNTING SYSTEM
Controls over an accounting system include the procedures, both manual and computerized, carried out independently to ascertain that transactions are complete, valid, authorized, and properly recorded.
21 CITY OF SALINAS

CASH CONTROLS

PROCEDURES PERFORMED BY EXTERNAL AUDITORS WITH RESPECT TO CASH

RECEIPTS
A. City procedures and controls are reviewed. Some of the system strengths are:

1. Receipts are controlled upon receipt by proper registration devices.

2. Receipts are reconciled on a daily basis.

3. Amounts batched and deposited intact.

4. Bank reconciliations are reviewed.

5. Prompt posting of cash receipt entries in books.

6. Proper approval required for write-offs of customer accounts.

7. Checks are restrictively endorsed upon receipt or when run through cash register.

8. Adequate physical security over cash.

9. Individuals that handle cash do not post to customer account records or process billing statements.

10. Adequate supervision of Finance Department operations.

B. Significant revenues are confirmed directly with payer and compared with City books to make sure amounts are recorded properly.

C. Cash balances are substantiated by confirming all account balances recorded in books. Bank reconciliations are reviewed for propriety and recalculated by the auditor. All significant reconciling items on bank reconciliations are verified as valid reconciling items by proving to subsequent bank statements.
22 CITY OF SALINAS

SEGREGATION OF RESPONSIBILITIES OF

THE TREASURY FUNCTIONS
Function Responsibility

1. Formal Investment Policy should be:

Prepared By: Finance Director
Approved By: City Council

2. Develop Investment Strategy Finance Director or Registered Investment Advisor

3. Investment Strategy should be Finance Director
approved by

4. Execution of investment transactions:

Investments other than LAIF and Deposits Finance Director or Registered Investment Advisor
Execution of LAIF and Deposit transfers Finance Director

5. Timely recording of investment transactions:

Recording of investment transactions Finance Director
in the City's accounting records

6. Verification of investment, Finance Director
i.e., match broker confirmation
to City's records

7. Confirmation of LAIF and Bank Wires Finance Director

8. Safeguarding of Assets and Records:

Reconciliation of City's Finance Director
records to bank statements and
safekeeping records
23 CITY OF SALINAS

SEGREGATION OF RESPONSIBILITIES OF

THE TREASURY FUNCTIONS
(Continued)
Function Responsibility

8. Safeguarding of Assets and Records
(continued):

Annual review of (a) financial Finance Director or Registered institution's financial condition, Investment Advisor
(b) safety, liquidity, and potential
yields of investment instruments.

9. No less than an annual Independent Auditors
review of investment
portfolio as prepared by
Senior Accountant and reviewed by
Finance Director
1 RESOLUTION NO. 22451 (N.C.S.)

A RESOLUTION AUTHORIZING THE EXECUTION OF A TRANSFER AGREEMENT

WITH THE TRANSPORTATION AGENCY FOR MONTEREY COUNTY (TAMC) FOR

PROPERTY LOCATED AT THE SALINAS INTERMODAL TRANSPORTATION CENTER
WHEREAS, on February 7, 2017, the City of Salinas and the Transportation Agency for Monterey County (TAMC) entered into a Memorandum of Understanding (MOU, Exhibit C to the Transfer Agreement, or the “Agreement”) for the redevelopment of the Salinas Intermodal Transportation Center (the “ITC”) to accommodate new commuter passenger rail service outside of the region (the “Project”); and
WHEREAS, the MOU called for TAMC to acquire property and construct improvements, including removal of the existing Station Place right-of-way and construction of a new Lincoln Avenue extension, and a new 287-stall parking area to serve commuters making use of the anticipated commuter train service as Package 1 of the Monterey County Rail Extension Kick Start Project (Package 1); and
WHEREAS, TAMC prepared and certified an Environmental Impact Report for Package 1 improvements; and
WHEREAS, TAMC has completed Package 1 and now desires, pursuant to the MOU, to transfer to the City eleven (11) parcels of land totaling approximately 2.32 acres which were developed by TAMC (the “Property”) and are listed and shown on Exhibits A and B respectively of the attached Agreement; and
WHEREAS, the Package 1 was funded through a Traffic Congestion Relief Program (TCRP) grant provided by the California Department of Transportation, which included provisions requiring the operation and maintenance of the commuter parking funded by the grant; and WHEREAS, under the terms of the TCRP grant Master Agreement the California Transportation Commission (CTC) must approve any transfer of the Property and the City must agree to abide by the terms of the Master Agreement, provided as Exhibit D to the Transfer Agreement; and
WHEREAS, the City of Salinas has determined that the proposed action of approving the Transfer Agreement to accept the Property is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378) because the transfer of Property does not cause a direct or foreseeable indirect physical change on or in the environment.

NOW, THEREFORE, BE IT RESOLVED that the City Council hereby authorizes and directs the City Manager to execute the attached Transfer Agreement; and BE IT FURTHER RESOLVED that upon execution of the Transfer Agreement, the City Council hereby authorizes and directs the Mayor to accept the Property on behalf of the City, and DocuSign Envelope ID: 4FB4565F-CCD5-4AFD-B54A-D40FC6CA6E7D 2 to execute the Certificates of Acceptance attached to the Quitclaim Deeds under Exhibit E of the Agreement.

PASSED AND APPROVED this 9
th day of August 2022, by the following vote:

AYES: Councilmembers: Barrera, Cromeenes, Gonzalez, McShane, Osornio, Rocha and Mayor Craig
NOES:

ABSENT:

ABSTAIN:

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

Transfer Agreement, including the following Exhibits:

Exhibit A – Description of Properties
Exhibit B – Map of Properties
Exhibit C – Memorandum of Understanding Between City and TAMC Exhibit D – CalTrans Master Agreement
Exhibit E – Quitclaim Deeds
DocuSign Envelope ID: 4FB4565F-CCD5-4AFD-B54A-D40FC6CA6E7D 19 Station Place 002-171-008 0.278 12,110
17 Station Place 002-171-007 0.270 11,761
15 Station Place 002-171-006
54 W Market St 002-171-011
52 W Market St 002-171-010
42 W Market St 002-171-005 0.355 15,464
18 Station Place 002-171-023 0.328 14,288
30 W Market St 002-172-001 0.099 4,312
26 W Market St 002-172-002 0.148 6,447
20 W Market St 002-172-011 0.381 16,596
21 Happ Place 002-171-037 0.098 4,255
TOTAL 2.322 101,132
Lincoln Ave 1.270 55,269
Palmetto St 0.098 4,255
Parking 0.954 41,608
Exhibit A
Salinas Train Station - TAMC Parcels

0.365 15,899
Salinas Intermodal Transportation Project Transfer Agreement Approved by the Transportation Agency for Monterey County on __________ Approved by the Salinas City Council on ________________________

Page 1 of 4 ends

TAMC and City of Salinas

TRANSFER AGREEMENT
This agreement (hereinafter referred to as the “Transfer Agreement”) is made on this _______ day of ____________, 2022, between the Transportation Agency for Monterey County (“TAMC”) and the City of Salinas, a California Charter City and municipal corporation (“City”). TAMC and City are collectively referred to as the “Parties.” The Parties hereby agree as follows:

1. TRANSFER
(a) As part of the Salinas Intermodal Transportation Project, TAMC agrees to transfer and City agrees to accept pursuant to the terms and conditions set forth in this Transfer Agreement, the eleven (11) parcels of approximately

2.3 acres of real property located on West Market Street and Station Place in the City of Salinas, County of Monterey, State of California, described in Exhibit A and depicted in Exhibit B, hereinafter referred to as the “Property.”
(b) City agrees to take the property consistent with the terms of the Memorandum of Understanding regarding the Salinas Intermodal Transportation Center (“MOU”), attached as Exhibit C, and subject to the requirements of the California Department of Transportation (Caltrans) Master Agreement, attached as Exhibit D and incorporated by this reference, which governs the state funding sources used to purchase the properties in question and to construct the project improvements.
(c) City agrees that it will be acquiring the Property by way of Quitclaim Deed, in a form attached hereto as Exhibit E and incorporated by this reference. (d) City agrees it will be acquiring the Property, including any improvements thereon, in an “as-is” condition with all faults and conditions then existing, including any hazardous substances or hazardous wastes, whether known or unknown, and City assumes all responsibility for such faults and conditions.

2. TAXES/ASSESSMENTS
TAMC shall pay all real property taxes and assessments due, if any, up to the transfer of the Property.

Salinas Intermodal Transportation Project Transfer Agreement Approved by the Transportation Agency for Monterey County on __________ Approved by the Salinas City Council on ________________________

Page 2 of 4 ends

TAMC and City of Salinas

3. TAMC’S REPRESENTATIONS AND WARRANTIES
TAMC represents and warrants to City that on the date this Transfer Agreement is fully executed, the following conditions apply:
(a) TAMC has the full right, power and authority to enter into this Transfer Agreement and to perform the transactions contained in it. (b) TAMC has indefeasible fee simple title to the Property.

4. NOTICES
All notices and demands shall be given in writing either by personal service or by registered or certified mail, postage prepaid, and return-receipt requested.

To Transportation Agency for Monterey County To City
TAMC c/o Executive Director City of Salinas c/o City Manager 55 B Plaza Circle 200 Lincoln Ave.

Salinas, California 93901 Salinas, California 93931

5. BINDING ON SUCCESSORS
This Transfer Agreement shall be binding on the Parties, their heirs, personal representatives, assigns and other successors in interest.

6. ADDITIONAL DOCUMENTS
The parties agree to execute any additional documents reasonable and necessary to carry out the provisions of the Transfer Agreement. TAMC’s Executive Director shall be authorized to execute any documents needed to complete the transaction, including but not limited to any future amendments to this Transfer Agreement, notices, or related documents.

7. SEVERABILITY
If any provision of this Transfer Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall continue in full force and effect without being impaired.

Salinas Intermodal Transportation Project Transfer Agreement Approved by the Transportation Agency for Monterey County on __________ Approved by the Salinas City Council on ________________________

Page 3 of 4 ends

TAMC and City of Salinas

8. CAPTIONS
The captions heading the various paragraphs of this Transfer Agreement are for convenience and shall not be considered to limit, expand or define the contents of the respective paragraphs.

9. GOVERNING LAW
This Transfer Agreement shall be governed by and construed in accordance with the laws of the State of California.

10. ENTIRE AGREEMENT
This Transfer Agreement embodies the entire agreement and understanding between the parties relating to the subject matter hereof and may not be amended, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. This Transfer Agreement supersedes all prior discussions, negotiations, agreements and memoranda regarding this Transfer Agreement whether oral or written.

11. AUTHORITY AND EXECUTION
This Transfer Agreement, which is valid only when executed by both parties, constitutes the complete understanding and mutual agreement of the Parties hereto.

No oral representation in any manner shall vary the terms hereof or be binding. The individuals executing this Transfer Agreement and any other related written documentation certify that they have authority to bind their respective entities.

12. COUNTERPARTS
This Transfer Agreement may be executed in counterparts, which shall be considered an original and which together shall constitute one document.

Salinas Intermodal Transportation Project Transfer Agreement Approved by the Transportation Agency for Monterey County on __________ Approved by the Salinas City Council on ________________________

Page 4 of 4 ends

TAMC and City of Salinas
The parties have executed this Transfer Agreement as shown below by their duly authorized representatives:

Transportation Agency for Monterey County
Date: ____________________ By: ________________________ Todd Muck, Executive Director
Approved as to Form:

By: __________________________________
Susan Blitch, TAMC Counsel
City of Salinas
Date: ____________________ By: ________________________ Steven S. Carrigan, City Manager
Approved as to Form:

By: _______________________________
Christopher A. Callihan, City Attorney
Exhibit B
002-171-037
.098 ACRES
Property transfer include all 11 parcels identified
in gray.

P:\Work Program\Rail\SALINAS RAIL EXTENSION\Salinas\ITC MOU\MOU_Salinas ITC Expansion_FINAL_DRAFT.docx

Page 1 ends

MEMORANDUM OF UNDERSTANDING
AMONG

THE TRANSPORTATION AGENCY FOR MONTEREY COUNTY,

THE CITY OF SALINAS,
AND

MONTEREY-SALINAS TRANSIT DISTRICT,

REGARDING THE SALINAS INTERMODAL TRANSPORTATION CENTER
Effective Date: February 7, 2017
This Memorandum of Understanding (MOU) is among the Transportation Agency for Monterey County (TAMC), the City of Salinas (City), and Monterey-Salinas Transit District (MST), hereafter referred to as “Parties”, regarding the Salinas Intermodal Transportation Center (ITC) Project (“Project”).

WHEREAS, the Parties have a cooperative working relationship as members of the Steering Committee for planning, development, and implementation of improvements to and expansion of the Salinas ITC; and
WHEREAS, through previous transportation planning studies, TAMC and the State of California determined that they needed to invest in a system of premium transit services that could better compete with traveling by automobile and attract new riders from the automotive modes of travel in order to provide additional transportation capacity in the Highway 101 Corridor, thereby reducing congestion, improving air quality, and saving energy in the Monterey Bay Area and San Francisco Bay Area; and
WHEREAS, the Governor and the Legislature expressed their support and endorsement of this Project by providing funding for the Rail Extension to Salinas and Monterey County from the Traffic Congestion Relief Act of 2000, the Proposition 116 Rail Bond and the Public Transportation Account; and
WHEREAS, the former Salinas Redevelopment Agency and the City of Salinas acquired the Salinas Amtrak Train Station and surrounding property in 1998, established the ITC, and have made significant improvements to access, landscaping, lighting and parking facilities since that time; and
WHEREAS, the Transportation Concept Report for U.S. Route 101, prepared by Caltrans District 5, dated October 1, 2001 (updated December 22, 2014), identified the Rail Extension to Monterey County project as being an integral element for managing travel demand in the Highway 101 Corridor; and
WHEREAS, Caltrans included the project as an “Interregional Transportation Priority” for the Central Coast in the 2015 Interregional Transportation Strategic Plan; and P:\Work Program\Rail\SALINAS RAIL EXTENSION\Salinas\ITC MOU\MOU_Salinas ITC Expansion_FINAL_DRAFT.docx

Page 2 ends

WHEREAS, AMBAG adopted the Rail Extension to Monterey County project as an element of the regional Sustainable Communities Strategy, known as the “Moving Forward 2035 Monterey Bay” plan, on June 11, 2014; and
WHEREAS, MST adopted a resolution supporting the Rail Extension to Monterey County Project on December 13, 2004 (reaffirmed June 8, 2015); and WHEREAS, TAMC, as the Lead Agency under the California Environmental Quality Act (CEQA), certified the final Environmental Impact Report (EIR) on August 23, 2006, and adopted an Addendum to the EIR on August 28, 2013, which EIR and Addendum to the EIR contemplate the actions described herein; and
WHEREAS, the California Transportation Commission, as a responsible agency, approved TAMC’s Final EIR on September 7, 2006; and
WHEREAS, in order to provide safe, efficient and effective transportation alternatives to the automobile, TAMC adopted a resolution endorsing the Extension of Rail Service into Monterey County (formerly known as the “Caltrain Extension to Monterey County Project”), with stations in Salinas, Pajaro and Castroville as the Locally Preferred Alternative for the Highway 101 corridor on January 31, 2007; and
WHEREAS, the City of Salinas recognized the benefit and importance to the City of implementing new passenger rail service by adopting a resolution supporting the Rail Extension to Monterey County Project on October 2, 2007 (reaffirmed July 7, 2015); and WHEREAS, the Capitol Corridor Joint Powers Authority (CCJPA) and TAMC jointly adopted Principles of Agreement for the extension of Capitol Corridor trains to Salinas in February 2013; and
WHEREAS, it is recognized that, with respect to some of the provisions set forth herein, numerous actions must be taken pursuant to federal, state and local laws and regulations before such policies can be implemented; and
NOW, THEREFORE, the Parties hereby agree as follows:

Project Features and Limits

1. The Parties agree to collaborate on the continued development of the Project located in downtown Salinas along the Union Pacific Railroad Coast Main Line Track at Milepost (MP) 114.94, generally bordered by West Market Street (Route 183) to the south, North Main Street to the east, the railroad tracks to the north, and Villa Street to the west. Local access roadways include Station Place, Lincoln Avenue, Palmetto Street, Happ Place, Vale Street, and New Street. (See Exhibit A, site map)

2. The Parties agree that the Project is intended to facilitate transportation uses, potentially including, but not limited to: Amtrak intercity passenger trains, commuter rail trains, P:\Work Program\Rail\SALINAS RAIL EXTENSION\Salinas\ITC MOU\MOU_Salinas ITC Expansion_FINAL_DRAFT.docx

Page 3 ends

recreational trains, MST local and regional buses, paratransit vehicles and bus rapid transit vehicles, intercity bus services, and transit supportive land uses, which may include housing.

3. The Parties agree that the full buildout of the Project, as described in the EIR and EIR Addendum, includes, but is not limited to, the following capital improvement projects:
a. Surface parking;
b. Bicycle lockers, bicycle racks and/or a bicycle station; c. Reconstruction of a portion of the existing passenger loading platform and the addition of a second platform;
d. Platform shelters, canopies, lighting, furniture and fixtures, information displays and landscaping;
e. Modification and/or addition of site access and circulation roadways; f. Traffic signalization, signing, and striping;
g. Construction of a transit exchange with passenger waiting and operations support facilities;
h. Construction/relocation of track, turnouts, track removals, and railroad signaling, as may be required;
i. Construction of intercity bus loading berths;
j. Site drainage, lighting and landscaping;
k. Stormwater facilities per City of Salinas National Pollutant Discharge Elimination System (NPDES) Permit;
l. Real property acquisition;
m. Building demolition;
n. Train layover yard, including crew base and train servicing support facilities; and o. Adaptive reuse of a freight building.

4. The Parties agree that the “Kick-Start” first phase of the Project may defer some of the items listed under Paragraph 3, based on funding constraints, until additional funding may be secured, such as rail platform canopies and bus operations support facilities. The Parties agree to the scope, character and layout of the Kick-Start first phase of the Project, as defined by the 75% Design Plans dated March 22, 2016 (Exhibit B).

5. The Parties agree to the scope, character and layout of the full buildout of the Project as defined by the 60% Design Plans dated September 21, 2016 (Exhibit C).

6. The Parties agree that the precise limits, locations and/or alignments of Project features may be adjusted to accommodate design refinements, specifically:
a. Right-of-way limits;
b. Utilities and subsurface constraints, if any;
c. Americans with Disability Act requirements; and
d. Environmental impact mitigation, as may be required.

7. The Parties agree that the existing traffic signalized intersection of West Market Street (State Route [SR] 183) and Lincoln Avenue is intended to be modified to add a north leg extension P:\Work Program\Rail\SALINAS RAIL EXTENSION\Salinas\ITC MOU\MOU_Salinas ITC Expansion_FINAL_DRAFT.docx

Page 4 ends

to this intersection as depicted on Exhibit B, and as approved by Caltrans. The Parties additionally agree that West Market Street (SR 183) access to/from Station Place is intended to be converted into a limited access driveway. The Parties agree that the Project shall include pedestrian safety improvements at the intersection of West Market Street (SR 183) and North Main Street/ Salinas Street, and that these improvements are important whether included as part of the first phase or a future phase of the project, or whether constructed separately.

Design Standards and Coordination

8. The Parties agree that a Project Development Team, consisting of MOU Parties and California Department of Transportation (Caltrans) District 5, will be the vehicle for design coordination.

9. The Parties agree to collect input from Caltrans, Union Pacific, Amtrak, Capitol Corridor Joint Powers Authority, California Public Utilities Commission, Salinas Historic Resources Board, the Oldtown Salinas Association, the First Mayor's House, Greyhound, and ITC neighboring businesses, residents, property owners, and the general public and to reflect this input, consistent with the design framework described herein.

10. The Parties agree that the design of the Project shall be consistent with the most recent edition of the following documents, as appropriate:
a. MST's Designing for Transit Design Standards
b. Amtrak's Standard Stations Program
c. Greyhound Bus Slip Layout and Bus Turning Dimensions d. City of Salinas Standard Specifications Design Standards and Standard Plans and Stormwater Development Standards
e. Caltrans Highway Design Manual
f. California Manual on Uniform Traffic Control Devices

11. The Parties agree that the selection of station fixtures, furnishings and finishes will be generally consistent with TAMC's inventory of Commuter Rail Station Features, most recent edition.

Station Funding, Operation and Maintenance

12. The Parties agree that the Project is a cooperative venture of the City of Salinas, TAMC, and MST.

13. Parties agree to define the lead agencies as follows:
a. TAMC shall be the lead agency for project development, which includes the funding, planning, any further state and applicable federal environmental review, design, right-ofway acquisition, and construction of the intercity/intercounty and local transport related elements of the Project (e.g., items identified in Paragraph 3, (a)-(n)).

P:\Work Program\Rail\SALINAS RAIL EXTENSION\Salinas\ITC MOU\MOU_Salinas ITC Expansion_FINAL_DRAFT.docx

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b. The City of Salinas shall be the lead agency for funding and renovating, as needed, the existing Amtrak Station building, the freight building identified in Paragraph 3(o), the First Mayor’s House and the Railway Express Agency building within the Salinas ITC. c. The Parties agree that each Party shall be responsible for the maintenance and security of their property within the area of the Project, according to the land ownership as specified in Paragraph 14 below.
d. The Parties anticipate that separate instruments will govern the operations and maintenance of the Project.

14. The Parties agree to the right-of-way concepts described in the Project Study Report, Property Acquisition and Disposition Plan, dated October 2005, and Parties agree to coordinate in order to accomplish the right-of-way ownership reflected in the exhibits to this agreement: Exhibit D: “Salinas Commuter Rail Station and Layover Facility Existing Right Of Way Map” and Exhibit E: “Salinas Commuter Rail Station and Layover Facility Proposed Right Of Way Map”. TAMC may consider use of the real property acquisition process in full compliance with all applicable laws. However, nothing in this MOU commits TAMC to acquire any specific parcels or to use the power of eminent domain. Specifically:
a. Lincoln Avenue: If TAMC decides to acquire property for the Kick-Start phase of the project, TAMC shall convey to the City of Salinas approximately 1.27 acres of right-ofway (ROW) from private parties upon construction of the extension of Lincoln Avenue into the ITC. Of this ROW, approximately 0.53 acres is intended to be used for Lincoln Avenue and 0.59 acres for replacement parking. The Lincoln Avenue extension is needed to provide traffic signalized access to the transit exchange. (Land Owner: City of Salinas) b. Transit Exchange: The City of Salinas intends to provide approximately 0.97 acres of ROW for the construction of a transit exchange at the ITC. This exchange will displace the ITC's existing off-street parking supply. The City of Salinas will dedicate an easement for access to the transit exchange. (Land Owner: City of Salinas) c. Parking: If TAMC decides to acquire property, it shall convey to the City approximately

1.05 acres of private land to replace the off-street parking supply displaced by the transit exchange. (Land Owner: City of Salinas)
d. Railroad Avenue: Railroad Avenue runs between Station Place and Palmetto Street in front of the Amtrak Station and freight buildings. TAMC intends to reconfigure the use of this ROW for the Kick-Start phase of the Project to serve bus operations and ITC traffic circulation movements. (Land Owner: City of Salinas) e. Buildings and Platform: The ITC includes a passenger station building, freight building, and a Railroad Express Agency (REA) building. These buildings and an adjacent First Mayor’s House (also known as the Harvey-Baker House) all rest on property owned by the City of Salinas. The City of Salinas shall retain the responsibility for maintaining and P:\Work Program\Rail\SALINAS RAIL EXTENSION\Salinas\ITC MOU\MOU_Salinas ITC Expansion_FINAL_DRAFT.docx

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making improvements to these buildings. The City of Salinas intends to dedicate to TAMC an easement for the purpose of improving an operating rail platform. (Land Owner: City of Salinas)
f. Union Pacific: The Union Pacific Railroad owns the ROW adjacent to its Coast Main Line Track for a distance of 25 feet from the track centerline, in the direction of the Amtrak Station building. In both the Kick-Start phase and at full buildout of the Project, the Amtrak train boarding platform, the proposed dual use of Amtrak platform, the dedicated use of a second passenger rail platform, as well as a portion of the layover facility, rest on these UPRR lands. (Land Owner: Union Pacific Railroad) g. Layover Facility: TAMC intends to consider acquiring approximately 6.1 acres of privately owned land, located immediately west of the freight building, for a new platform, a Layover Facility yard and lead track (Land Owner: Transportation Agency for Monterey County)
h. Station Place: If TAMC utilizes the land acquisition process and after such process has been completed, the City of Salinas intends to abandon Station Place and the alley behind 20 West Market Street, at which time these public right-of-ways will revert to the adjacent property owner, which will be the City of Salinas, to be converted into parking for the ITC, in the Kick-Start phase. (Land Owner: City of Salinas) i. New Street: If TAMC utilizes the land acquisition process and after such process has been completed, the City of Salinas intends to abandon the portion of New Street within the layover facility area, at which time this public right-of-way will revert to the adjacent property owner, TAMC, to be used as parking or an access road, in the full buildout project. (Land Owner: Transportation Agency for Monterey County)

15. The Parties agree that MST intends to provide connecting bus service for trains at the ITC.

MST, in its sole discretion, shall schedule bus service according to demand.

16. The Parties agree that the Project shall include all mitigations identified or to be identified through CEQA and any applicable NEPA environmental documents, per the adopted Mitigation Monitoring and Reporting Program and each Party shall cooperate in achieving this goal.

17. Parties agree that the City shall authorize TAMC to effect necessary utility relocations in accordance with the City's utility franchise agreement with utility owners.

18. Parties agree that off-site improvements shall be limited to Project mitigations identified for the intersection of Market Street (SR 183) and Lincoln Avenue and its approaches, as described in the EIR and Addendum to the EIR, and as depicted on Exhibit B; and utility connections as may be required. Parties agree that TAMC will be the lead agency to apply for encroachment permits for Project work to be performed on the State-owned right-of-way.

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19. Parties agree that the Project will not be assessed impact fees or exactions as a condition of permit approvals for the Project. The Project will be subject to standard City of Salinas water/fire line connections fees, building permits, and plan check fees.

20. Parties agree that Project implementation is contingent on funding availability.

General Provisions

21. This MOU shall be governed by and interpreted under the laws of the State of California.

22. This MOU may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Memorandum.

23. Any individual executing this MOU on behalf of a party represents and warrants hereby that he or she has the requisite authority to enter into this MOU on behalf of such party and bind the party to the terms and conditions of this MOU.

24. If any of the provisions contained in the MOU are held illegal, invalid, or unenforceable, the enforceability of the remaining provisions shall not be impaired thereby. If a part of this MOU is valid, all valid parts that are severable from the invalid part remain in effect. If a part of this MOU is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

25. Parties agree that any work within the State right-of-way will require an encroachment permit issued from Caltrans. Detailed information such as complete drawings, biological and cultural resource findings, hydraulic calculations, environmental reports, traffic study, etc., may need to be submitted as part of the encroachment permit process.

26. This MOU is effective on February 7, 2017, and shall remain in force until December 31, 2025, unless extended or sooner terminated by mutual consent of the Parties. The period of performance may be extended or shortened by written agreement of the Parties. Any Party hereto may terminate this MOU at any time by giving 180 days written notice to the other Parties as specified in Paragraph 31.

27. This MOU, together with the documents referenced herein, including the Project EIR and Addendum to the EIR, constitutes the entire agreement and understanding between the Parties and their successor agencies, and supersedes any prior or contemporaneous agreement, or understandings, if any, with regard to the purposes of this MOU. Any changes or modifications shall be accomplished by a written amendment to this MOU executed by the duly authorized representatives of the Parties.

28. In the event of a dispute arising out of the performance of this MOU, each of the Parties shall send a written notice of dispute to the other Parties. Within fifteen working days of receipt of such notice, the notified Party shall respond and agree to a meeting for the purpose of negotiating a settlement or procedure for settlement of the dispute.

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29. The Parties shall defend, indemnify and hold each other and their respective officers, employees, and agents harmless from and against any and all liability, loss, expense, including reasonable attorney’s fees, or claims for injury or damages arising out of the performance of this MOU, but only in proportion to and to the extent such liability, loss, expense, attorney’s fees, or claims for injury or damages are caused by or result from the negligent acts or omissions or willful misconduct of their respective officers, agents, or employees.

30. Each Party to this Memorandum shall maintain books, accounts, records and data related to this Memorandum in accordance with federal and/or state requirements and shall maintain those books, accounts, records and data for three (3) years after termination of this Memorandum. For the duration of this Memorandum, and for a period of three (3) years thereafter, each Party’s representatives and representatives of the California Department of Transportation, the Auditor General of the State of California shall have the right to examine these books, accounts, records, data and other information relevant to this Memorandum for the purpose of auditing and verifying statements, invoices, bills and revenues pursuant to this Memorandum.

31. Any notice to be given to the parties hereunder shall be addressed as follows (until notice of a different address is given to the parties):
a. TRANSPORTATION AGENCY FOR MONTEREY COUNTY
Executive Director
55 B Plaza Circle
Salinas, CA 93901
b. CITY OF SALINAS
City Manager
200 Lincoln Avenue
Salinas, CA 93901
(with a copy to the Public Works Director)
c. MONTEREY-SALINAS TRANSIT
General Manager/CEO
One Ryan Ranch Road
Monterey, CA 93940-5795
Attachments:
 Exhibit A: Site Map
 Exhibit B: Kick-Start first phase of the Project, dated March 22, 2016  Exhibit C: Full buildout station design, dated September 21, 2016  Exhibit D: Salinas Commuter Rail Station and Layover Facility Existing Right Of Way Map  Exhibit E: Salinas Commuter Rail Station and Layover Facility Proposed Right Of Way Map

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Exhibit A: Site Map
TAMC TRANSPORTATION AGENCY 55-B Plaza Circle Salinas, CA 93901 FOR MONTEREY COUNTY 100 Pringle Avenue Suite 400 Walnut Creek, CA 94596 925-974-2500 TAMC TRANSPORTATION AGENCY 55-B Plaza Circle Salinas, CA 93901 FOR MONTEREY COUNTY 100 Pringle Avenue Suite 400 Walnut Creek, CA 94596 925-974-2500 TAMC TRANSPORTATION AGENCY 55-B Plaza Circle Salinas, CA 93901 FOR MONTEREY COUNTY 100 Pringle Avenue Suite 400 Walnut Creek, CA 94596 925-974-2500 TAMC TRANSPORTATION AGENCY 55-B Plaza Circle Salinas, CA 93901 FOR MONTEREY COUNTY 100 Pringle Avenue Suite 400 Walnut Creek, CA 94596 925-974-2500 TAMC TRANSPORTATION AGENCY 55-B Plaza Circle Salinas, CA 93901 FOR MONTEREY COUNTY 100 Pringle Avenue Suite 400 Walnut Creek, CA 94596 925-974-2500 TAMC TRANSPORTATION AGENCY 55-B Plaza Circle Salinas, CA 93901 FOR MONTEREY COUNTY 100 Pringle Avenue Suite 400 Walnut Creek, CA 94596 925-974-2500 TAMC TRANSPORTATION AGENCY 55-B Plaza Circle Salinas, CA 93901 FOR MONTEREY COUNTY 100 Pringle Avenue Suite 400 Walnut Creek, CA 94596 925-974-2500 TAMC TRANSPORTATION AGENCY 55-B Plaza Circle Salinas, CA 93901 FOR MONTEREY COUNTY 100 Pringle Avenue Suite 400 Walnut Creek, CA 94596 925-974-2500 TAMC TRANSPORTATION AGENCY 55-B Plaza Circle Salinas, CA 93901 FOR MONTEREY COUNTY 100 Pringle Avenue Suite 400 Walnut Creek, CA 94596 925-974-2500 TAMC TRANSPORTATION AGENCY 55-B Plaza Circle Salinas, CA 93901 FOR MONTEREY COUNTY 100 Pringle Avenue Suite 400 Walnut Creek, CA 94596 925-974-2500 TAMC TRANSPORTATION AGENCY 55-B Plaza Circle Salinas, CA 93901 FOR MONTEREY COUNTY 100 Pringle Avenue Suite 400 Walnut Creek, CA 94596 925-974-2500 TAMC TRANSPORTATION AGENCY 55-B Plaza Circle Salinas, CA 93901 FOR MONTEREY COUNTY 100 Pringle Avenue Suite 400 Walnut Creek, CA 94596 925-974-2500 Transportation Agency for Monterey County
Master Agreement No. 64A0078 A02
Revised December 23,2020
Master Agreement
State Funded Transit Projects
California Department of Transportation

DIVISION OF RAIL AND MASS TRANSPORTATION
1120 N STREET, ROOM 3300
P. O. BOX 942874, MS-39
SACRAMENTO, CA 94274-0001
PHONE (916) 654-8012
Transportation Agency for Monterey County
Master Agreement No. 64A0078 A02
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STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION

DIVISION OF RAIL AND MASS TRANSPORTATION

TABLE OF CONTENTS
FUNDING SOURCES COVERED BY THIS AGREEMENT as identified in each Program Supplement __________________________________________________________________ 1 ARTICLE I - PROJECT ADMINISTRATION _____________________________________ 1 Section 1. Program Supplement _____________________________________________________ 1 A. General ___________________________________________________________________________ 1 B. Project Overrun_____________________________________________________________________4 C. Scope of Work _____________________________________________________________________4 D. Program Supplement Amendments______________________________________________________4 Section 2. Allowable Costs and Payments _____________________________________________ 4 A. Allowable Costs and Progress Payment Vouchers __________________________________________4 B. Advance Payments (TCR Projects Only) _________________________________________________5 C. Expedited Payments (Excludes TCR Projects) _____________________________________________6 D. Advance Expenditure of Local Funds____________________________________________________6 E. Travel Reimbursement _______________________________________________________________7 F. Final Invoice _______________________________________________________________________7 ARTICLE II – GENERAL PROVISIONS _________________________________________ 7 Section 1. Funding ________________________________________________________________ 7 A. Local Match Funds __________________________________________________________________7 B. Funding Contingencies _______________________________________________________________8 C. Funds Movement ___________________________________________________________________8 Section 2. Audits and Reports ______________________________________________________ 8 A. Cost Principles _____________________________________________________________________8 B. Record Retention ___________________________________________________________________9 C. Quarterly Review __________________________________________________________________10 Section 3. Special Requirements ____________________________________________________ 10 A. California Transportation Commission (CTC) Resolutions __________________________________10 B. Recipient Resolution________________________________________________________________11 C. Termination_______________________________________________________________________11 D. Third Party Contracting _____________________________________________________________12 E. Change in Terms/Amendments________________________________________________________13 F. Project Ownership__________________________________________________________________13 G. Disputes _________________________________________________________________________15 H. Hold Harmless and Indemnification ____________________________________________________15 I. Labor Code Compliance _____________________________________________________________16 J. Non-Discrimination ________________________________________________________________16 K. State Fire Marshal Building Standards __________________________________________________17 L. Americans with Disabilities Act _______________________________________________________17 M. Access for Persons with Disabilities ____________________________________________________17 N. Disabled Veterans Program Requirements _______________________________________________17 O. Environmental Process ______________________________________________________________18 Transportation Agency for Monterey County
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ARTICLE III – SPECIAL PROVISIONS ________________________________________ 18 Section 1. Bond Provisions ________________________________________________________ 19 A. General Bond Provisions ____________________________________________________________18 Section 2. TCRP PROJECTS ______________________________________________________ 21 Section 3. PROJECT MANAGEMENT _____________________________________________ 21 Attachment I -- CTC Resolution G-91-2 __________________________________________ 22 Attachment II -- Recipient Agency Board Resolution _______________________________ 25 Transportation Agency for Monterey County
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STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION

DIVISION OF RAIL AND MASS TRANSPORTATION

MASTER AGREEMENT

STATE FUNDED TRANSIT PROJECTS
Effective Date of this Agreement: July 12, 2021
Termination Date of this Agreement: July 12, 2031
Recipient: Transportation Agency for Monterey County

APPLICABLE FUNDING SOURCES COVERED BY THIS AGREEMENT WILL BE

IDENTIFIED IN EACH SPECIFIC PROGRAM SUPPLEMENT

ADOPTING THE TERMS OF THIS AGREEMENT
♦ General Fund
♦ State Highway Account
♦ Public Transportation Account
♦ Clean Air and Transportation Improvement Act of 1990 (PROP. 116) Bond Fund ♦ Traffic Congestion Relief Fund (TCR), GC 14556.40
♦ Proposition 1A, the Safe, Reliable High-Speed Passenger Train Bond Act ♦ Road Repair and Accountability Act of 2017, Senate Bill 1 ♦ Other State Funding Sources (Existing and Future), except the Transit and Intercity Rail Program (TIRCP)
This AGREEMENT, entered into effective as of the date set forth above, is between the signatory public entity identified hereinabove, hereinafter referred to as RECIPIENT, and the STATE OF CALIFORNIA, acting by and through its Department of Transportation, hereinafter referred to as STATE.

ARTICLE I - PROJECT ADMINISTRATION
Section 1. Program Supplement
A. General
(1) This AGREEMENT shall have no force and effect with respect to any PROJECT unless and until a separate PROJECT specific “PROGRAM SUPPLEMENT – STATE FUNDED TRANSIT PROJECT(S),” hereinafter referred to as “PROGRAM SUPPLEMENT,” adopting all of the terms and conditions of this AGREEMENT has been fully executed by both STATE and RECIPIENT.

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(2) RECIPIENT agrees to complete each defined PROJECT, or the identified PROJECT Phase/Component thereof, described in the PROGRAM SUPPLEMENT adopting all of the terms and conditions of this AGREEMENT.
(3) A financial commitment of actual PROJECT funds will only occur in each detailed and separate PROGRAM SUPPLEMENT. No funds are obligated by the prior execution of this AGREEMENT alone.
(4) RECIPIENT further agrees, as a condition to the release and payment of the funds encumbered for the PROJECT described in each PROGRAM SUPPLEMENT, to comply with the terms and conditions of this AGREEMENT and all the agreed-upon Special Covenants and Conditions attached to or made a part of the PROGRAM SUPPLEMENT identifying and defining the nature of that specific PROJECT. (5) The PROGRAM SUPPLEMENT shall include: a detailed Scope of Work conforming to the included Project Description, a Project Schedule, an Overall Funding Plan, and a Project Financial Plan as required by the applicable Program Guidelines. a. The Scope of Work shall include a detailed description of the PROJECT and will itemize the major tasks and their estimated costs.
b. The Project Schedule shall include major tasks and/or milestones and their associated beginning and ending dates and duration.
c. The Overall Funding Plan shall itemize the various PROJECT Components, the committed funding program(s) or source(s), and the matching funds to be provided by RECIPIENT and/or other funding sources, if any [these Components include Environmental and Permits; Plans, Specifications and Estimates (PS&E); Right-ofWay (ROW); and Construction (including transit vehicle acquisition)]. d. The Project Financial Plan shall identify estimated expenditures for each PROJECT Component by funding source.
(6) Adoption and execution of the PROGRAM SUPPLEMENT by RECIPIENT and STATE, incorporating the terms and conditions of this AGREEMENT into the PROGRAM SUPPLEMENT as though fully set forth therein, shall be sufficient to bind RECIPIENT to these terms and conditions when performing the PROJECT. Unless otherwise expressly delegated to a third-party in a resolution by RECIPIENT’s governing body, which delegation must be expressly assented to and concurred in by STATE, the PROGRAM SUPPLEMENT shall be managed by RECIPIENT. (7) The estimated cost and scope of each PROJECT will be as described in the applicable PROGRAM SUPPLEMENT. STATE funding participation for each PROJECT is limited to those amounts actually encumbered by STATE as evidenced in that applicable PROGRAM SUPPLEMENT. A contract awarded by RECIPIENT for PROJECT work in an amount in excess of said approved estimate or the PROGRAM SUPPLEMENT funding limit may exceed any said PROGRAM SUPPLEMENT cost estimate and the limits of STATE’s participation provided:

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a. RECIPIENT provides the necessary additional funding, or b. A cost increase in STATE’s share of PROJECT funding is first requested by RECIPIENT (before the cost overrun occurs) and that increase is approved by STATE in the form of an Allocation Letter comprising the encumbrance document for that increased STATE funding level.
(8) State programmed fund amounts may be increased to cover PROJECT cost increases only if:
a. Such funds are available;
b. STATE concurs with that proposed increase; and
c. STATE issues an approved Allocation Letter, Fund Shift Letter, or a Time Extension Letter with additional funding as stated in an executed amendment to that PROGRAM SUPPLEMENT.
(9) When additional State programmed funds are not available, RECIPIENT agrees that reimbursements of invoiced PROJECT costs paid to RECIPIENT will be limited to, and shall not exceed, the amounts already approved in the PROGRAM SUPPLEMENT containing the STATE approved encumbrance documents and that any increases in PROJECT costs above that STATE supported funding level must be defrayed by RECIPIENT with non-State funds.
(10) For each approved PROGRAM SUPPLEMENT, RECIPIENT agrees to contribute at least the statutorily or other required local contribution of appropriate matching funds (other than State funds) if any matching funds are specified within the PROGRAM SUPPLEMENT, or any attachment thereto, toward the actual cost of the PROJECT or the amount, if any, specified in an executed SB 2800 (Streets and Highways Code section 164.53) Agreement for local match fund credit, whichever is greater.

RECIPIENT shall contribute not less than the required match amount toward the cost of the PROJECT in accordance with a schedule of payments as shown in a Project Financial Plan prepared by RECIPIENT as part of a PROGRAM SUPPLEMENT. (11) Upon the stated expiration date of this AGREEMENT, any PROGRAM SUPPLEMENTS executed under this AGREEMENT for a PROJECT with work yet to be completed pursuant to the approved Project Schedule shall be deemed to extend the term of this AGREEMENT only to conform to the specific PROJECT termination or completion date contemplated by the applicable PROGRAM SUPPLEMENT to allow that uncompleted PROJECT to be administered under the extended terms and conditions of this AGREEMENT.
(12)Total project cost includes the cost of a project for all phases (Plans, Specifications, and Estimates (PS&E), Project Approval and Environmental Document (PA&ED) Right-ofWay (ROW), and Construction (CON) including rolling stock) of a Project from start to finish.

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B. Project Overrun
(1) If RECIPIENT and STATE determine, at any time during the performance of a PROJECT, that the PROJECT budget may be exceeded, RECIPIENT shall take the following steps:
a. Notify the designated STATE representative of the nature and projected extent of the overrun and, within a reasonable period thereafter, identify and quantify potential cost savings or other measures which RECIPIENT will institute to bring the Project Budget into balance; and
b. Schedule the projected overrun for discussion at the next Quarterly Review meeting; and
c. Identify the source of additional RECIPIENT or other third party funds that can be made available to complete PROJECT.

C. Scope of Work
(1) RECIPIENT shall be responsible for complete performance of the work described in the approved PROGRAM SUPPLEMENT for the PROJECT related to the commitment of encumbered funds. All work shall be accomplished in accordance with the applicable provisions of the Public Utilities Code, the Streets and Highways Code, the Government Code, and other applicable statutes and regulations. (2) RECIPIENT acknowledges and agrees that RECIPIENT is the sole control and manager of each PROJECT and its subsequent employment, operation, repair and maintenance for the benefit of the public. RECIPIENT shall be solely responsible for complying with the funding and use restrictions established by (a) the statutes from which these funds are derived, (b) the California Transportation Commission (CTC), (c) the State Treasurer, (d) the Internal Revenue Service, (e) the applicable PROGRAM SUPPLEMENT, and (f) this AGREEMENT.

D. Program Supplement Amendments
PROGRAM SUPPLEMENT amendments will be required whenever there are CTC-approved changes to the cost, scope of work, or delivery schedule of a PROJECT from those specified in the original PROJECT Application and the original PROGRAM SUPPLEMENT. Those changes shall be mutually binding upon the Parties only following the execution of a PROGRAM SUPPLEMENT amendment.

Section 2. Allowable Costs and Payments
A. Allowable Costs and Progress Payment Vouchers
(1) Not more frequently than once a month, but at least quarterly, RECIPIENT will prepare and submit to STATE (directed to the attention of the appropriate State District Transportation Agency for Monterey County
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Transit Representative) signed Progress Payment Vouchers for actual PROJECT costs incurred and paid for by RECIPIENT consistent with the Scope of Work document in the PROGRAM SUPPLEMENT and STATE shall pay those uncontested allowable costs once the voucher is approved. If no costs were incurred during any given quarter, RECIPIENT is exempt from submitting a signed Progress Payment Voucher; but is still required to present a progress report at each Quarterly Review. (2) STATE shall not be required to reimburse more funds, cumulatively, per quarter of any fiscal year greater than the sums identified and included in the PROJECT Financial Plan. However, accelerated reimbursement of PROJECT funds in excess of the amounts indicated in the Project Financial Plan, cumulatively by fiscal year, may be allowed at the sole discretion of STATE if such funds are available for encumbrance to fulfill that need.
(3) Each such voucher will report the total of PROJECT expenditures from all sources (including those of RECIPIENT and third parties) and will specify the percent of State reimbursement requested and the fund source. The voucher should also summarize State money requested by PROJECT component (environmental and permits, plans specifications, and estimates (PS&E); right of way; construction; rolling stock; or--if bond funded--private activity usage) and phase, and shall be accompanied by a report describing the overall work status and progress on PROJECT tasks. If applicable, the first voucher shall also be accompanied by a report describing any tasks specified in the PROGRAM SUPPLEMENT which were accomplished prior to the Effective Date of this AGREEMENT or the PROGRAM SUPPLEMENT with costs to be credited toward any required local contribution described in Article II, Section 1 of this Agreement (but only if expended pursuant to any applicable prior executed Agreement for Local Match Fund Credit between RECIPIENT and STATE). (4) An Indirect Cost Rate Proposal and/or Central Service Cost Allocation plan and related documentation approved under cognizant agency regulations are to be provided to STATE (Caltrans Audits & Investigations) annually for their review, and approval and filing prior to ADMINISTERING AGENCY seeking reimbursement of indirect costs incurred within each fiscal year being claimed for reimbursement.

B. Advance Payments (TCR Projects Only)
(1) Advance reimbursements or payments by STATE are not allowed except in the case of TCR funded Projects, and only then when expressly authorized by the CTC. (2) In order to receive a CTC approved TCR payment advance, RECIPIENT must provide duplicate signed invoices to STATE requesting payment of that authorized advance. (3) For TCR Projects approved for advanced payment allocation by the CTC, said advance payment shall be deposited by RECIPIENT in an interest bearing account held by institutions with long-term credit ratings of “AA” or better from at least two nationally recognized credit rating agencies, or in instruments issued by and secured by the full faith and credit of the U.S. Government or by an agency of the U.S. Government. No Transportation Agency for Monterey County
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TCR interest earnings may be spent on the PROJECT. Interest earned shall be recorded and documented from the time the TCR funds are first deposited in RECIPIENT’s account until all the approved TCR advance funds have been expended or returned to STATE together with all accrued interest. Interest earned shall be reported to STATE’s Project Coordinator on an annual basis and upon the final PROJECT payment when interest earnings, overpayments, and unexpended advanced TCR funds shall be returned to STATE no later than thirty (30) days after PROJECT completion or termination of the PROGRAM SUPPLEMENT, whichever is first in time. (4) Advanced funds are to be expended only as indicated in the approved TCR Application.

RECIPIENT must be able to document the expenditures/disbursement of funds advanced to only pay for actual allowable PROJECT costs incurred. (5) Except as expressly allowed hereinbelow, non-TCR funds and TCR project funds not authorized for advance payment can only be released by STATE as reimbursement of actual allowable PROJECT costs already incurred and paid for by RECIPIENT no earlier than the effective date of this AGREEMENT and not incurred beyond the AGREEMENT/PROGRAM SUPPLEMENT Termination Date.
(6) Where advance payments are authorized in a PROGRAM SUPPLEMENT, RECIPIENT must report and document the expenditure/disbursement of funds advanced to pay for actual eligible PROJECT costs incurred, at least quarterly, using a Progress Payment Voucher to be approved by STATE’s District Project Administrator.

C. Expedited Payments
Should RECIPIENT have a valid Memorandum of Understanding (MOU) for “Expedited Payment” on file with STATE’s Accounting Service Center, RECIPIENT will, not more frequently than as authorized by that MOU, prepare and submit to STATE an Expedited Payment Invoice for reimbursements that are consistent with that MOU, this AGREEMENT, and the applicable PROGRAM SUPPLEMENT. Expedited Payments are subject to policies established in the Caltrans Accounting Manual. One time payments and final payments eligible for expedited pay pursuant to this Section will have ten percent (10%) of each invoice amount withheld until PROJECT completion and STATE has evaluated RECIPIENT’s performance and made a determination that all requirements assumed under this AGREEMENT and the relevant PROGRAM SUPPLEMENT have been satisfactorily fulfilled by RECIPIENT.

D. Advance Expenditure of Local Funds
Government Code section 14529.17 (AB 872) allows public agencies to expend their own funds on certain programmed projects prior to the CTC’s allocation of funds, and, upon receipt of CTC approval, to then seek reimbursement for those allowable prior expenditures following execution of a PROGRAM SUPPLEMENT wherein STATE acknowledges and accepts those statutorily authorized prior expenditures as a credit towards a required RECIPIENT match, (if any) or as eligible PROJECT expenditures for reimbursement.

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E. Travel Reimbursement
Payments to RECIPIENT for PROJECT related travel and subsistence expenses of RECIPIENT forces and its subcontractors claimed for reimbursement or applied as local match credit shall not exceed rates authorized to be paid rank and file State employees under current State Department of Personnel Administration (DPA) rules. If the rates invoiced by RECIPIENT are in excess of those authorized DPA rates, then RECIPIENT is responsible for the cost difference, and any overpayments inadvertently paid by STATE shall be reimbursed to STATE by RECIPIENT on demand.

F. Final Invoice
The PROGRAM SUPPLEMENT Termination Date refers to the last date for RECIPIENT to incur valid PROJECT costs or credits and is the date that the PROGRAM SUPPLEMENT expires. RECIPIENT has one hundred and eighty (180) days after that Termination Date to make already incurred final allowable payments to PROJECT contractors or vendors, prepare the PROJECT Closeout Report, and submit the final invoice to STATE for reimbursement of allowable PROJECT costs before those remaining State funds are unencumbered and those funds are reverted as no longer available to pay any PROJECT costs. RECIPIENT expressly waives any right to allowable reimbursements from STATE pursuant to this AGREEMENT for costs incurred after that termination date and for costs invoiced to RECIPIENT for payment after that one hundred and eightieth (180th) day following the PROJECT Termination Date.

ARTICLE II – GENERAL PROVISIONS
Section 1. Funding
A. Local Match Funds
Subparagraphs “(1) and (2)” within this Section 1.A. apply only to those PROJECTS where the PROJECT funding is programmed to require a local match. (See individual Program Guidelines for specific funding requirements).
(1) Except where specifically allowed by the applicable PROGRAM SUPPLEMENT, reimbursement of and credits for local matching funds will be made or allowed only for work performed after the Effective Date of a PROGRAM SUPPLEMENT and prior to the Termination Date unless permitted as local match PROJECT expenditures made prior to the effective date of the PROGRAM SUPPLEMENT pursuant to Government Code section 14529.17 or by an executed SB 2800 Agreement for Local Match Fund Credit. (2) RECIPIENT agrees to contribute at least the statutorily or other required local contribution of matching funds (other than State or federal funds), if any is specified within the PROGRAM SUPPLEMENT or any attachment thereto, toward the actual cost of the PROJECT or the amount, if any, specified in any executed SB 2800 (Streets and Highways Code Section 164.53) Agreement for local match fund credit, whichever is greater.

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RECIPIENT shall contribute not less than its required match amount toward the PROJECT cost in accordance with a schedule of payments as shown in the Project Financial Plan prepared by RECIPIENT and approved by STATE as part of a PROGRAM SUPPLEMENT.

B. Funding Contingencies
Delivery by STATE of all funds encumbered to reimburse allowable PROJECT costs pursuant to this AGREEMENT is contingent upon prior budget action by the Legislature, fund allocation by the CTC or the United States Department of Transportation, and submittal by RECIPIENT and approval by STATE of all PROJECT documentation, including, without limitation, that required by Government Code section 14085. In the event of the imposition of additional conditions, delays, or a cancellation or reduction in funding, as approved by the Legislature, the CTC or the United States Department of Transportation, RECIPIENT shall be excused from meeting the time and expenditure constraints set forth in the Project Financial Plan and the Project Schedule to the extent of such delay, cancellation or reduction and the PROGRAM SUPPLEMENT will be amended to reflect the resultant necessary changes in PROJECT funding, scope, or scheduling.

C. Funds Movement
RECIPIENT shall not make any proposed changes in any of the four PROJECT expenditure Components (Environmental and Permits, PS&E, Right-of-Way and Construction), including major equipment acquisitions without prior written STATE approval. STATE will also determine whether those proposed changes are significant enough to warrant CTC review.

Specific rules and guidelines regarding this process may be detailed in the applicable CTC Resolutions, including, but not limited to, numbers G-06-04 and G-06-20 or their successors.

Section 2. Audits and Reports
A. Cost Principles
(1) RECIPIENT agrees to comply with Title 2 Code of Federal Regulations 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards.
(2) RECIPIENT agrees, and will assure that its contractors and subcontractors will be obligated to agree to follow 2 CFR 200 and it shall be used to determine the allowability of individual Project cost items. Every sub-recipient receiving Project funds as a contractor or sub-contractor under this agreement shall comply with 2 CFR 200.
(3) Any PROJECT costs for which RECIPIENT has received payment or credit that are determined by subsequent audit to be unallowable under 2 CFR 200, are subject to repayment by RECIPIENT to STATE. Should RECIPIENT fail to reimburse moneys due STATE within thirty (30) days of demand, or within such other period as Transportation Agency for Monterey County
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may be agreed in writing between the Parties hereto, STATE is authorized to intercept and withhold future payments due RECIPIENT from STATE or any third-party source, including but not limited to, the State Treasurer, the State Controller and the CTC.

B. Record Retention
(1) RECIPIENT agrees, and will assure that its contractors and subcontractors shall establish and maintain an accounting system and records that properly accumulate and segregate incurred PROJECT costs and matching funds by line item for the PROJECT.

The accounting system of RECIPIENT, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices. All accounting records and other supporting papers of RECIPIENT, its contractors and subcontractors connected with PROJECT performance under this AGREEMENT and each PROGRAM SUPPLEMENT shall be maintained for a minimum of three (3) years from the date of final payment to RECIPIENT under a PROGRAM SUPPLEMENT and shall be held open to inspection, copying, and audit by representatives of STATE, the California State Auditor, and auditors representing the federal government. Copies thereof will be furnished by RECIPIENT, its contractors, and subcontractors upon receipt of any request made by STATE or its agents. In conducting an audit of the costs and match credits claimed under this AGREEMENT, STATE will rely to the maximum extent possible on any prior audit of RECIPIENT pursuant to the provisions of federal and State law. In the absence of such an audit, any acceptable audit work performed by RECIPIENT’s external and internal auditors may be relied upon and used by STATE when planning and conducting additional audits.
(2) For the purpose of determining compliance with Title 21, California Code of Regulations, Section 2500 et seq., when applicable, and other matters connected with the performance of RECIPIENT’s contracts with third parties pursuant to Government Code section 8546.7, RECIPIENT, RECIPIENT’s contractors and subcontractors and STATE shall each maintain and make available for inspection all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts. All of the above referenced parties shall make such AGREEMENT and PROGRAM SUPPLEMENT materials available at their respective offices at all reasonable times during the entire PROJECT period and for three (3) years from the date of final payment to RECIPIENT under any PROGRAM SUPPLEMENT.

STATE, the California State Auditor, or any duly authorized representative of STATE or the United States Department of Transportation, shall each have access to any books, records, and documents that are pertinent to a PROJECT for audits, examinations, excerpts, and transactions, and RECIPIENT shall furnish copies thereof if requested. (3) RECIPIENT, its contractors and subcontractors will permit access to all records of employment, employment advertisements, employment application forms, and other Transportation Agency for Monterey County
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pertinent data and records by the State Fair Employment Practices and Housing Commission, or any other agency of the State of California designated by STATE, for the purpose of any investigation to ascertain compliance with this AGREEMENT.

C. Quarterly Review
(1) Subject to the discretion of STATE, RECIPIENT and STATE agree to conduct, on a quarterly basis, on-site reviews of all aspects of the progress of each PROJECT.

RECIPIENT agrees, during each quarterly progress review, to inform STATE regarding:
a. Whether the PROJECT is proceeding on schedule and within budget; b. Any requested changes to the Project Description, Scope of Work, Project Schedule, Overall Funding Plan, or Project Financial Plan contained in a PROGRAM SUPPLEMENT;
c. Major construction accomplishments during the quarter; d. Any actual or anticipated problems which could lead to delays in schedule, increased costs or other difficulties;
e. The status of the PROJECT budget; and
f. The status of critical elements of PROJECT.
(2) Quarterly reviews of RECIPIENT progress will include consideration of whether reported implementation activities are within the scope of the PROJECT PROGRAM SUPPLEMENT and in compliance with State laws, regulations, and administrative requirements.

Section 3. Special Requirements
A. California Transportation Commission (CTC) Resolutions (1) RECIPIENT shall adhere to applicable CTC policies, as may be adopted or amended from time to time, governing eligibility, project management, use of funds including, but not limited to the “Timely Use of Funds” as stated in Resolution G-06-04, adopted April 26, 2006, addressing the expenditure and reimbursement of TCR funds and Resolution G-09-11, adopted October 14, 2009, to provide guidance for the use of Proposition 116 and STIP funds. All CTC resolutions, and/or successor resolutions in place at the time a PROGRAM SUPPLEMENT is executed, shall be applicable to all state funded projects including, but not limited to Prop 116, STIP, TCR funds, Proposition 1A, and the Road Repair and Accountability Act of 2017, respectively. (2) RECIPIENT shall be bound to the terms and conditions of this AGREEMENT; the PROJECT application contained in the PROGRAM SUPPLEMENT (as applicable); and CTC Resolutions G-06-04, G-09-11 and/or their respective successors in place at the time the PROGRAM SUPPLEMENT is signed (as applicable) and all restrictions, rights, duties and obligations established therein on behalf of STATE and CTC shall Transportation Agency for Monterey County
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accrue to the benefit of the CTC and shall thereafter be subject to any necessary enforcement action by CTC or STATE. All terms and conditions stated in the aforesaid CTC Resolutions and CTC-approved Guidelines in place at the time the PROGRAM SUPPLEMENT is signed (if applicable) shall also be considered to be binding provisions of this AGREEMENT.
(3) RECIPIENT shall conform to any and all permit and mitigation duties associated with PROJECT as well as all environmental obligations established in CTC Resolution G91-2 and/or its successors in place at the time a PROGRAM SUPPLEMENT is signed, as applicable, at the expense of RECIPIENT and/or the responsible party and without any further financial contributions or obligations on the part of STATE unless a separate PROGRAM SUPPLEMENT expressly provides funding for the specific purpose of hazardous materials remediation.
(4) RECIPIENT acknowledges when the PROGRAM SUPPLEMENT is executed the RECIPIENT is to comply with all CTC resolutions as adopted or currently amended as well as the guidelines, and policies applicable to state funded programs (or projects) including, but not limited to, Prop 116, STIP, TCR, Proposition 1A, and the Road Repair and Accountability Act of 2017.

B. RECIPIENT Resolution
(1) RECIPIENT has executed this AGREEMENT pursuant to the authorizing RECIPIENT resolution, attached as Attachment II to this AGREEMENT, which empowers RECIPIENT to enter into this AGREEMENT and which may also empower RECIPIENT to enter into all subsequent PROGRAM SUPPLEMENTS adopting the provisions of this AGREEMENT.
(2) If RECIPIENT or STATE determines that a separate Resolution is needed for each PROGRAM SUPPLEMENT, RECIPIENT will provide information as to who the authorized designee is to act on behalf of the RECIPIENT to bind RECIPIENT with regard to the terms and conditions of any said PROGRAM SUPPLEMENT or amendment and will provide a copy of that additional Resolution to STATE with the PROGRAM SUPPLEMENT or any amendment to that document.

C. Termination
(1) STATE reserves the right to terminate funding for any PROGRAM SUPPLEMENT upon written notice to RECIPIENT in the event that RECIPIENT fails to proceed with PROJECT work in accordance with the PROGRAM SUPPLEMENT, the bonding requirements, if applicable, or otherwise violates the conditions of this AGREEMENT and/or the PROGRAM SUPPLEMENT or the funding allocation such that substantial performance is significantly endangered.

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(2) No such termination shall become effective if, within thirty (30) days after receipt of a Notice of Termination, RECIPIENT either cures the default involved or, if not reasonably susceptible of cure within said thirty (30)-day period, RECIPIENT proceeds thereafter to complete the cure in a manner and time line acceptable to STATE. Any such termination shall be accomplished by delivery to RECIPIENT of a Notice of Termination, which notice shall become effective not less than thirty (30) days after receipt, specifying the reason for the termination, the extent to which funding of work under this AGREEMENT is terminated and the date upon which such termination becomes effective, if beyond thirty (30) days after receipt. During the period before the effective termination date, RECIPIENT and STATE shall meet to attempt to resolve any dispute.
(3) Following a fund encumbrance made pursuant to a PROGRAM SUPPLEMENT, if RECIPIENT fails to expend TCR/GENERAL FUND monies by June 30 of any applicable Fiscal Year that those funds would revert, those funds will be deemed withdrawn and will no longer be available to reimburse PROJECT work unless those funds are specifically made available beyond the end of that Fiscal Year through reappropriation or other equivalent action of the Legislature and written notice of that action is provided to RECIPIENT by STATE.
(4) In the event STATE terminates a PROGRAM SUPPLEMENT for convenience and not for a default on the part of RECIPIENT as is contemplated in C (1) and (2) above of this Section 3, RECIPIENT shall be reimbursed its authorized costs up to STATE’s proportionate and maximum share of allowable PROJECT costs incurred to the date of RECIPIENT’s receipt of that notice of termination, including any unavoidable costs reasonably and necessarily incurred up to and following that termination date by RECIPIENT to effect such termination following receipt of that termination notice.

D. Third Party Contracting
(1) RECIPIENT shall not award a construction contract over $10,000 or other contracts over $25,000 [excluding professional service contracts of the type which are required to be procured in accordance with Government Code Sections 4525 (d), (e) and (f)] on the basis of a noncompetitive negotiation for work to be performed under this AGREEMENT without the prior written approval of STATE. Contracts awarded by RECIPIENT, if intended as local match credit, must meet the requirements set forth in this AGREEMENT regarding local match funds.
(2) Any subcontract entered into by RECIPIENT as a result of this AGREEMENT shall contain the provisions of ARTICLE II – GENERAL PROVISIONS, Section 2. Audits and Reports and shall mandate that travel and per diem reimbursements and third-party contract reimbursements to subcontractors will be allowable as PROJECT costs only after those costs are incurred and paid for by the subcontractors.

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(3) To be eligible for local match credit, RECIPIENT must ensure that local match funds used for the PROJECT meet the General Provisions requirements outlined in this ARTICLE II in the same manner as required of all other PROJECT expenditures. (4) In addition to the above, the preaward requirements of third party contractor/consultants with local transit agencies should be consistent with Local Program Procedures (LPP-00-05).

E. Change in Funds and Terms/Amendments
This AGREEMENT and the resultant PROGRAM SUPPLEMENTS may be modified, altered, or revised only with the joint written consent of RECIPIENT and STATE.

F. Project Ownership
(1) Unless expressly provided to the contrary in a PROGRAM SUPPLEMENT, subject to the terms and provisions of this AGREEMENT, RECIPIENT, or a designated subrecipient acceptable to STATE, as applicable, shall be the sole owner of all improvements and property included in the PROJECT constructed, installed or acquired by RECIPIENT or subrecipient with funding provided to RECIPIENT under this AGREEMENT. RECIPIENT, or subrecipient, as applicable, is obligated to continue operation and maintenance of the physical aspects of the PROJECT dedicated to the public transportation purposes for which PROJECT was initially approved unless RECIPIENT, or subrecipient, as applicable, ceases ownership of such PROJECT property; ceases to utilize the PROJECT property for the intended public transportation purposes; or sells or transfers title to or control over PROJECT and STATE is refunded the Credits due STATE as provided in paragraph (4) herein below. (2) Should State bond funds be encumbered to fund any part of a PROJECT under this AGREEMENT, then, at STATE’s option, before RECIPIENT will be permitted to make any proposed change in use, RECIPIENT shall be required to first obtain a determination by Bond Counsel acceptable to the State Treasurer’s Office and STATE that a change in the operation, proportion, or scope of PROJECT as originally proposed by RECIPIENT will not adversely affect the tax exempt status of those bonds. (3) PROJECT right-of-way, PROJECT facilities constructed or reconstructed on a PROJECT site and/or PROJECT property (including vehicles and vessels) purchased by RECIPIENT (excluding temporary construction easements and excess property whose proportionate resale proceeds are distributed pursuant to this AGREEMENT) shall remain permanently dedicated to the described public transit use in the same proportion and scope, and to the same extent as mandated in the PROGRAM SUPPLEMENT and related Bond Fund Certification documents, if applicable, unless STATE agrees otherwise in writing. Vehicles acquired as part of PROJECT, including, but not limited to, buses, vans, rail passenger equipment and ferry vessels, shall be dedicated to that public transportation use for their full economic life cycle, which, for the purpose of this AGREEMENT, will be determined in accordance with Transportation Agency for Monterey County
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standard national transit practices and applicable rules and guidelines, including any extensions of that life cycle achievable by reconstruction, rehabilitation or enhancements.
(4) (a) Except as otherwise set forth in this Section 4, STATE, or any other STATEassignee public body acting on behalf of the CTC, shall be entitled to a refund or credit (collectively the Credit), at STATE’s sole option, equivalent to the proportionate PROJECT funding participation received by RECIPIENT from STATE if RECIPIENT, or a sub-recipient, as applicable, (i) ceases to utilize PROJECT for the original intended public transportation purposes or (ii) sells or transfers title to or control over PROJECT. If federal funds (meaning only those federal funds received directly by RECIPIENT and not federal funds derived through or from the State) have contributed to the PROJECT, RECIPIENT shall notify both STATE and the original federal source of those funds of the disposition of the PROJECT assets or the intended use of those sale or transfer receipts. (b) STATE shall also be entitled to an acquisition Credit for any future purchase or condemnation of all or portions of PROJECT by STATE or a designated representative or agent of STATE.
(c) The Credit due STATE will be determined by the ratio of STATE’s funding when measured against the RECIPIENT’s funding participation (the Ratio). For purposes of this Section 4, the State’s funding participation includes federal funds derived through or from STATE. That Ratio is to be applied to the then present fair market value of PROJECT property acquired or constructed as provided in (d) and (e) below.
(d) For Mass Transit vehicles, this Credit [to be deducted from the then remaining equipment value] shall be equivalent to the percentage of the full extendable vehicle economic life cycle remaining, multiplied by the Ratio of funds provided for that equipment acquisition. For real property, this same funding Ratio shall be applied to the then present fair market value, as determined by STATE, of the PROJECT property acquired or improved under this AGREEMENT.
(e) Such Credit due STATE as a refund shall not be required if RECIPIENT dedicates the proceeds of such sale or transfer exclusively to a new or replacement STATE approved public transit purpose, which replacement facility or vehicles will then also be subject to the identical use restrictions for that new public purpose and the Credit ratio due STATE should that replacement project or those replacement vehicles cease to be used for that intended described pre-approved public transit purpose.
(1) In determining the present fair market value of property for purposes of calculating STATE’s Credit under this AGREEMENT, any real property portions of a PROJECT site contributed by RECIPIENT shall not be included.

In determining STATE’s proportionate funding participation, STATE’s Transportation Agency for Monterey County
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contributions to third parties (other than RECIPIENT) shall be included if those contributions are incorporated into the PROJECT.
(2) Once STATE has received the Credit as provided for above because RECIPIENT, or a sub-recipient, as applicable, has (a) ceased to utilize the PROJECT for the described intended public transportation purpose(s) for which STATE funding was provided and STATE has not consented to that cessation of services or (b) sold or transferred title to or control over PROJECT to another party (absent STATE approval for the continued transit operation of the PROJECT by that successor party under an assignment of RECIPIENT’s duties and obligations), neither RECIPIENT, subrecipient, nor any party to whom RECIPIENT or subrecipient, as applicable, has transferred said title or control shall have any further obligation under this AGREEMENT to continue operation of PROJECT and/or PROJECT facilities for those described public transportation purposes, but may then use PROJECT and/or any of its facilities for any lawful purpose.
(3) To the extent that RECIPIENT operates and maintains Intermodal Transfer Stations as any integral part of PROJECT, RECIPIENT shall maintain each station and all its appurtenances, including, but not limited to, restroom facilities, in good condition and repair in accordance with high standards of cleanliness (Public Utilities Code section 99317.8). Upon request of STATE, RECIPIENT shall also authorize State-funded bus services to use those stations and appurtenances without any charge to STATE or the bus operator.

This permitted use will include the placement of signs and informational material designed to alert the public to the availability of the State-funded bus service (for the purpose of this paragraph, "State-funded bus service" means any bus service funded pursuant to Public Utilities Code section 99316). (4) Special conditions apply to any proposed sale or transfer or change of use as respects PROJECT property, facilities or equipment acquired with tax free State bond funds and RECIPIENT shall conform to those restrictions as set forth herein and in said bonds.

G. Disputes
STATE and RECIPIENT shall deal in good faith and attempt to resolve potential disputes informally. If the dispute persists, RECIPIENT shall submit to the STATE’s District Contract Manager or designee a written demand for a decision regarding the disposition of any dispute arising under this agreement. The District Contract Manager shall make a written decision regarding the dispute and will provide it to the fund RECIPIENT. The fund RECIPIENT shall have an opportunity to challenge the District Contract Manager’s determination but must make that challenge in writing within ten (10) working days to the Mass Transportation Program Manager or his/her designee. [If the fund RECIPIENT challenge is not made within the ten (10) day period, the District Contract Manager’s decision shall become the final decision of the STATE.] STATE and RECIPIENT shall submit written, factual information and supporting Transportation Agency for Monterey County
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data in support their respective positions. The decision of the Mass Transportation Program Manager or his/her designee shall be final, conclusive and binding regarding the dispute, unless RECIPIENT commences an action in court of competent jurisdiction to contest the decision in accordance with Division 3.6 of the California Government Code.

H. Hold Harmless and Indemnification
(1) Neither STATE nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by RECIPIENT, its agents and contractors under or in connection with any work, authority, or jurisdiction delegated to RECIPIENT under this AGREEMENT or any PROGRAM SUPPLEMENT or as respects environmental clean-up obligations or duties of RECIPIENT relative to PROJECT. It is also understood and agreed that, RECIPIENT shall fully defend, indemnify and hold the CTC and STATE and their officers and employees harmless from any liability imposed for injury and damages or environmental obligations or duties arising or created by reason of anything done or imposed by operation of law or assumed by, or omitted to be done by RECIPIENT under or in connection with any work, authority, or jurisdiction delegated to RECIPIENT under this AGREEMENT and all PROGRAM SUPPLEMENTS. (2) RECIPIENT shall indemnify, defend and hold harmless STATE, the CTC and the State Treasurer relative to any misuse by RECIPIENT of State funds, PROJECT property, PROJECT generated income or other fiscal acts or omissions of RECIPIENT.

I. Labor Code Compliance
RECIPIENT shall include in all subcontracts awarded using PROJECT funds, when applicable, a clause that requires each subcontractor to comply with California Labor Code requirements that all workers employed on public works aspects of any project (as defined in California Labor Code §§ 1720-1815) be paid not less than the general prevailing wage rates predetermined by the Department of Industrial Relations as effective the date of Contract award by the RECIPIENT.

J. Non-Discrimination
(1) In the performance of work under this AGREEMENT, RECIPIENT, its contractor(s) and all subcontractors, shall not unlawfully discriminate, harass or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age, marital status, family and medical care leave, pregnancy leave, and disability leave. RECIPIENT, its contractor(s) and all subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment.

RECIPIENT, its contractor(s) and all subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code section 12900 et seq.), and the applicable regulations promulgated thereunder (California Code of Regulations, Transportation Agency for Monterey County
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Title 2, section 11000 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this AGREEMENT by reference and made a part hereof as if set forth in full. Each of RECIPIENT’s contractors and all subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreements, as appropriate. (2) Should federal funds be constituted as part of PROJECT funding or compensation received by RECIPIENT under a separate Contract during the performance of this AGREEMENT, RECIPIENT shall comply with this AGREEMENT and with all federal mandated contract provisions as set forth in that applicable federal funding agreement.
(3) RECIPIENT shall include the non-discrimination and compliance provisions of this clause in all contracts and subcontracts to perform work under this AGREEMENT.

K. State Fire Marshal Building Standards Code
The State Fire Marshal adopts building standards for fire safety and panic prevention. Such regulations pertain to fire protection design and construction, means of egress and adequacy of exits, installation of fire alarms, and fire extinguishment systems for any State-owned or Stateoccupied buildings per section 13108 of the Health and Safety Code. When applicable, RECIPIENT shall request that the State Fire Marshal review PROJECT PS&E to ensure PROJECT consistency with State fire protection standards.

L. Americans with Disabilities Act
By signing this Master Agreement, RECIPIENT assures STATE that RECIPIENT shall comply with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA (42 U.S.C. 12101 et seq.).

M. Access for Persons with Disabilities
Disabled access review by the Department of General Services (Division of the State Architect) is required for all publicly funded construction of buildings, structures, sidewalks, curbs and related facilities. RECIPIENT will award no construction contract unless RECIPIENT’s plans and specifications for such facilities conform to the provisions of sections 4450 and 4454 of the California Government Code, if applicable. Further requirements and guidance are provided in Title 24 of the California Code of Regulations.

N. Disabled Veterans Program Requirements
(1) Should Military and Veterans Code sections 999 et seq. be applicable to RECIPIENT, RECIPIENT will meet, or make good faith efforts to meet, the 3% Disabled Veterans Transportation Agency for Monterey County
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Business Enterprises goals (or RECIPIENT’s applicable higher goals) in the award of every contract for PROJECT work to be performed under these this AGREEMENT. (2) RECIPIENT shall have the sole duty and authority under this AGREEMENT and each PROGRAM SUPPLEMENT to determine whether these referenced code sections are applicable to RECIPIENT and, if so, whether good faith efforts asserted by those contractors of RECIPIENT were sufficient as outlined in Military and Veterans Code sections 999 et seq.

O. Environmental Process
Completion of the PROJECT environmental process (“clearance”) by RECIPIENT (and/or STATE if it affects a State facility within the meaning of the applicable statutes) is required prior to requesting PROJECT funds for right-of-way purchase or construction. No State agency may request funds nor shall any State agency, board or commission authorize expenditures of funds for any PROJECT effort, except for feasibility or planning studies, which may have a significant effect on the environment unless such a request is accompanied with all appropriate documentation of compliance with or exemption from the California Environmental Quality Act (CEQA) (including, if as appropriate, an environmental impact report, negative declaration, or notice of exemption) under California Public Resources Code section 21080(b) (10), (11), and (12) provides an exemption for a passenger rail project that institutes or increases passenger or commuter services on rail or highway rights-of-way already in use.

P. Force Majeure
Each party will be excused from performance of its obligations where such non-performance is caused by any extraordinary event beyond its reasonable control, such as any non-appealable order, rule or regulation of any federal or state governmental body, fire, flood, earthquake, storm, hurricane or other natural disaster, epidemic, pandemic, war, invasion, act of foreign enemies, hostilities (regardless of whether war is declared), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation, terrorist activities, nationalization, government sanction, blockage, embargo, labor dispute, strike, lockout or interruption, provided that the party excused hereunder shall use all reasonable efforts to minimize its non-performance and to overcome, remedy or remove such event in the shortest practical time.

Should a force majeure event occur which renders it impossible for a period of forty-five (45) or more consecutive days for either party to perform its obligations hereunder, the Parties agree to negotiate in good faith to amend the existing Master Agreement or Supplemental Agreement to deal with such event and to seek additional sources of funding to continue the operation of the Service.

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ARTICLE III – SPECIAL PROVISIONS
Section 1. Bond Provisions (Applicable only to State Bond Funding encumbered against a specific Program Supplement).

A. General Bond Provisions
(1) If RECIPIENT enters into a management contract with a private party (including AMTRAK) for operation of rail, ferry or other transportation services in connection with PROJECT, RECIPIENT will obtain prior approval from Bond Counsel acceptable to STATE that the terms of that management contract meet the requirements of Internal Revenue Service Revenue Procedure 97-13 (as supplemented or amended) or any successor thereto (dealing generally with guidelines for when management contracts may be deemed not to create a "private use" of bond-financed property) or are otherwise acceptable. RECIPIENT must also be prepared to certify, upon request of STATE, that the revenues which RECIPIENT (or its manager) will receive directly from the operation of transportation services in connection with PROJECT (but not including any subsidy of the transportation operation from taxes or other outside fund sources) are, for any fiscal year, less than the ordinary and necessary expenses directly attributable to the operation and maintenance of the transportation system (excluding any overhead or administrative costs of RECIPIENT). (2) Except as provided in this Article III, A (1), STATE and RECIPIENT agree that any costs of PROJECT acquired or constructed by RECIPIENT allocable to portions of PROJECT which are subject to any property interests held by a non-governmental person(s) in connection with business activities, such as easements, leases, or fee interests, not generally enjoyed by the public (hereinafter referred to as “NonGovernmentally Used Property” or “NUP”) shall require the prior approval of STATE and the State Treasurer, as applicable. If RECIPIENT receives any revenues or profits from any NUP activities allowed pursuant to this Article (whether approved at this time or hereafter approved by STATE), RECIPIENT agrees that such revenues or profits shall be used exclusively for the public transportation services for which PROJECT was initially approved, either for capital improvements or operating costs. If RECIPIENT does not so dedicate those revenues or profits, a proportionate share shall (unless disapproved by Bond Counsel) be paid to STATE equivalent to the Ratio of STATE’s percentage of participation in PROJECT.
(3) Notwithstanding the foregoing, RECIPIENT may be authorized to receive an allocation of bond proceeds for NUP activity, in an amount not to exceed the amount specified in the PROGRAM SUPPLEMENT, if RECIPIENT submits a certified bond certification questionnaire to the STATE, and both the STATE and the State Treasurer approve the private activities contained therein.
(4) RECIPIENT shall not loan any portion of bond proceeds funding PROJECT to any private (including nonprofit) person or business. For this purpose, a “loan” includes Transportation Agency for Monterey County
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any arrangement that is the economic equivalent of a loan, regardless of how it is named.
(5) Delivery by STATE of any bond funds is contingent on the sale of bonds by the State Treasurer. STATE shall not be held liable for any resulting damage or penalty to RECIPIENT in the event bond sales are delayed, canceled, or downsized or other AGREEMENT funds are restricted, limited or otherwise conditioned by acts of Congress, the Internal Revenue Service, the United States Department of Transportation, the Legislature, or the CTC.
(6) RECIPIENT shall, for the purposes of any State bond funded right of way acquisition which will become a permanent part of PROJECT (such acquisitions exclude temporary construction easements, property allocated to matching funds, and excess property purchased with State funds whose resale proceeds are returned or credited to STATE), maintain ownership of such PROJECT property for a minimum of twenty years or until the bonds have matured, whichever occurs first, before transferring or selling such property (subject to all refunds or Credits due STATE as provided hereinabove).
(7) Where RECIPIENT’s PROJECT includes a commuter rail PROJECT within the meaning of Proposition 116, RECIPIENT shall coordinate and share with other public transit operators any rail rights-of-way, common maintenance services and station facilities used for intercity and commuter rail. Intercity and commuter rail services shall be coordinated with each other, with other providers and with freight traffic to provide integrated rail passenger and freight services with minimal conflict. (8) RECIPIENT agrees that all passenger vehicles, rail, and water borne ferry equipment, and all facilities acquired or constructed with Proposition 116 bond funds shall be accessible to persons with physical disabilities, including wheelchair users, at all stops, stations and terminals, whether or not staffed.
(9) NUP shall, for accounting and bookkeeping purposes, first be allocated to funding sources other than the State bond funds. For purposes of making such allocations, the costs attributable to NUP involving a sale, easement, lease or similar arrangement shall be determined on the basis of a fair allocation of value, which may include determinations based upon square meters/feet of the area encumbered by the NUP lease or easement relative to the total area acquired or constructed if all such area is of approximately equal value.
(10) NUP will include, but is not limited to, property which is sold (including sales of air and subsurface rights), and property subject to easements, leases or similar rights. A rail right of way will not be treated as NUP solely as a result of a Freight Use Easement retained by the seller of the right of way to RECIPIENT, provided that the sales agreement appropriately excludes the Freight Use Easement from the property or rights being acquired. Further, notwithstanding anything in this Article III to the contrary, RECIPIENT may allocate grant funds to the cost of any NUP if (a) neither RECIPIENT nor any other governmental entity will receive, directly or indirectly, any Transportation Agency for Monterey County
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payments from or on behalf of the non-governmental user of the NUP, or (b) the payment from such user does not exceed the operation and maintenance costs fairly attributable or allocable to the non-governmental use of the NUP. (11) RECIPIENT shall request, in writing, STATE’s advance approval if PROJECT funds are to be allocated to any NUP except "incidental use" property described below. If property, the costs of which have previously been allocated to PROJECT funds, is to become NUP before the State bond funds are fully paid or redeemed, then RECIPIENT may allocate the costs of such property to another funding source as provided or obtain STATE’s approval that the allocation of the costs of such property to the bond funds may remain. It is anticipated that STATE’s approval will be granted if, taking into account the existing and expected uses of the proceeds of the State bonds, STATE determines that the continued tax-exempt status of the State bonds will not be adversely affected and that the use of the property is consistent with PROJECT and its described purpose.
(12) For purposes of these fund source allocations, RECIPIENT does not have to consider NUP as including those "incidental uses" of PROJECT (for example, advertising billboards, vending machines, telephones, etc.) which meet the applicable requirements of federal tax regulations (IRS Notice 87-69 or any successor thereto). In general, such Notice requires that the incidental use not be physically separated from the rest of PROJECT and not comprise, in the aggregate, more than 2-1/2% of the total costs of PROJECT.

Section 2. TCRP PROJECTS
The TRAFFIC CONGESTION RELIEF (TCR) ACT OF 2000 (the “ACT”), was added (in Chapter 4.5, commencing with section 14556) to part 5.3 of Division 3 of Title 2 of the Government Code by AB 2928 and SB 406, as amended by SB 1662 and AB 1705. As directed by the ACT and the CTC established Guidelines (as set out in CTC Resolution G-06-04), and as those Guidelines may be amended prior to the execution of a future PROGRAM SUPPLEMENT, said Guidelines shall apply to each TCRP funded PROJECT. By this reference, those Guidelines are made an express part of this AGREEMENT and shall apply to each TCRP funded PROJECT. RECIPIENT will cause its specific TCRP mandated Resolution to be attached as part of any TCRP funded PROGRAM SUPPLEMENT as a condition precedent to the acceptance of TCR ACT funds for that PROJECT.

Section 3. PROJECT MANAGEMENT
(1) STATE’s PROJECT administrator for this AGREEMENT shall be the chief of the State Transit Grants Branch of the Division of Rail and Mass Transportation. RECIPIENT’s General Manager, Executive Director or a Designee as named in writing to STATE following execution of this AGREEMENT shall be the administrator acting for RECIPIENT.

Transportation Agency for Monterey County
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(2) PROGRAM SUPPLEMENT administrators for STATE shall be the applicable District Division Chief for Planning and for RECIPIENT, the designee named in the applicable PROGRAM SUPPLEMENT.

IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT by their duly authorized officers.

STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION TRANSPORTATION AGENCY

DIVISION OF RAIL AND MASS FOR MONTEREY COUNTY

TRANSPORTATION
BY: BY:

W. KYLE GRADINGER, Chief
Division of Rail and Mass Transportation
DEBRA L. HALE,
Executive Director

APPROVED AS TO FORM AND PROCEDURE

STATE OF CALIFORNIA
DEPARTMENT OF TRANSPORTATION APPROVED AS TO FORM:

BY: BY:

Attorney, California Department of
Transportation

TAMC COUNSEL
DATED:
__________________________ June 9, 2021
Transportation Agency for Monterey County
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ATTACHMENT I
CTC RESOLUTION G-91-2
Passed by the CTC on February 21, 1991

CALIFORNIA TRANSPORTATION COMMISSION
RESOLUTION G-9l-2
Commission Policy Resolution for Hazardous Waste Identification and Cleanup for Rail Right-of-Way
WHEREAS, the Commission has programmed funding for rail right-of-way acquisition in the 1990 State Transportation Improvement Program and may allocate funds for rail right-of-way acquisition from the Clean Air and Transportation Improvement Act; and
WHEREAS, hazardous wastes, based upon federal and state statutes and regulations, include but are not limited to such categories as heavy metals, (e.g., lead), inorganic (e.g., excessive mineral levels) and organic compounds (e.g., petroleum products), and can occur on a property's surface and subsurface; and WHEREAS, rail properties often have hazardous wastes exceeding State of California and federal hazardous waste standards; and
WHEREAS, such properties contaminated with hazardous wastes require mitigation prior to using them for rail purposes; and
WHEREAS, hazardous wastes discovered on rail property may significantly impact property value, project scheduling and future liability for the grant applicant; and WHEREAS, the Commission must be assured that acquisition of rail properties have been fully reviewed by the grant applicant, and if warranted, the grant applicant has tested for hazardous wastes; and WHEREAS, if hazardous wastes exist, the Commission must be assured that the hazardous wastes identified has either been cleaned up, or financial responsibility for the cleanup has been determined prior to title transfer to the grant applicant, or easement has been secured in lieu of purchasing the property, and the subsurface rights and liability for hazardous wastes remain with the property seller; and WHEREAS, hazardous wastes identified subsequent to title transfer to the grant applicant will be cleaned up by the seller or a mechanism to recover clean-up-costs is established and executed as a condition prior to title transfer; and
WHEREAS, full due diligence is necessary in discovering hazardous waste and is an essential element in acquiring rail right-of-way properties by the grant applicant; and NOW THEREFORE BE IT RESOLVED, that acquisition of all rail right-of-way properties will be fully investigated by the grant applicant to determine the absence/presence of hazardous wastes. Investigations shall be conducted in accordance to the standards and practices of the local, state and/or federal regulatory agencies having jurisdiction and by personnel adequately trained in hazardous waste investigation; and Transportation Agency for Monterey County
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Salinas City CouncilJuly 1, 2025

Salinas City Council
July 1, 2025