LEASE AGREEMENT
Laz Parking California, LLC
Amendment No. 1
This Amendment No. 1 (“Amendment”) is made and entered into this 23rd day of September, 2025, by and between the City of Salinas, a California charter city and municipal corporation , hereinafter called the “City,” and Laz Parking California, LLC , a Connecticut Limited Liability Company, hereinafter called the “Tenant.” The City and the Tenant may sometimes be collectively referred to herein as the “Parties.”
RECITALS
WHEREAS, on August 10, 2021, the Parties first entered into a Lease Agreement for the real property and improvements (the “Premises”) located thereon at 5 Station Place , in the city of Salinas, County of Monterey (the “Lease Agreement,)” a copy of which is attached hereto as Exhibit A and incorporated herein by this reference); and WHEREAS, the Lease Agreement expired on August 31, 2025, and Tenant has continued to occupy the space lease to it under the Agreement on a month-to-month holdover basis; and WHEREAS, the Tenant d esires to move its offices from 5 Station Place to 3 Station Place (Formerly Greyhound Lines space) and to occupy 3 Station Place for an two -year period on the same terms and conditions as set forth in the Lease Agreement; and WHEREAS, the City desires to allow the Tenant to move its offices to 3 Station Place for the same use and occupancy of the Premises located at 5 Station Place (general office use) for an additional period of time beyond expiration of the Extended Term of the Lease Agreement, as defined therein, on the same terms and conditions as set forth therein; and WHEREAS, the Lease Agreement may be amended from time-to-time, as set forth in Section 20 thereof, provided such amendments are memorialized in writing and executed by both of the Parties.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in the Lease Agreement and in this Amendment, the Parties agree to amend the Lease Agreement, as follows:
AGREEMENT
1. The Premises identified in Section 1 of the Leas e Agreement and leased by the City to the Tenant pursuant to the Lease Agreement as amended herein are hereby identified as 3 Station Place, Salinas, California 93901 (the “Premises”) and more particularly described in Exhibit A, which is attached hereto and incorporated herein by this reference. The Tenant shall accept the Premises “as-is, where-is.”
2. The Extended Term of the Lease Agreement, as set forth in Section 2 thereof, is hereby extended for an additional two-year period from September 1, 2025, to August 31, 2027 (the
Amendment No. 1 to Lease Agreement
September 23, 2025
“Second Extended Term”). The Tenant may request a renewal of the Lease Agreement for an additional two (2) year period from September 1, 2027 to August 31, 2029 (the “Third Extended Term”) by submitting a written request to the City at least sixty (60) days prior to the expiration of the Initial Term. The terms and conditions of a renewed or extended lease shall be subject to the negotiation of the parties to this Lease.
3. Commencing on October 1, 2025, and continuing for a two-year period measured therefrom through the entire term of the Second Extended Term, Tenant shall pay to the City, as rent, the amount of nine hundred forty-five dollars and fifty cents ($945.50) per month (“Rent”) for the use and the possession of the Premises. If, pursuant to paragraph 2 of this Amendment, the Lease Agreement is further extended beyond the Second Extended Term, the Rent shall be increased to one thousand three dollars and twenty -eight cents ($1,003.28) per month, effective at the beginning of the Third Extended Term.
4. All other terms and conditions of the Lease Agreement not amended herein shall remain in full force and effect and shall be incorporated herein by this reference.
IN WITNESS WHEREOF, the undersigned, as authorized representatives of the City and of the Tenant, have entered into this Amendment as of the date first written above.
CITY OF SALINAS Laz Parking California LLC
_______________________________
___________________________________
Dennis Donohue, Mayor By:
Its:
APPROVED AS TO FORM:
______________________________
Christopher A. Callihan, City Attorney
Amendment No. 1 to Lease Agreement
September 23, 2025
Exhibit A: Lease Agreement
LEASE AGREEMENT BETWEEN
THE CITY OF SALINAS AND LAZ
PARKING CALIFORNIA, LLC
DocuSign Envelope ID: 9E277808-9FCB-4554-81D9-4EEADEB28851 City of Salinas Page 1 of 10
Lease Agreement—5 Station Place
August 10, 2021
TABLE OF CONTENTS
RECITALS .................................................................................................................................................................... 2 AGREEMENT .............................................................................................................................................................. 2
1. PREMISES. ...................................................................................................................................................... 2
2. TERM. .............................................................................................................................................................. 2
3. RENT................................................................................................................................................................ 2
4. USE. ................................................................................................................................................................. 2
5. COMPLIANCE WITH LAWS. ....................................................................................................................... 3
6. TAXES AND ASSESSMENTS. ...................................................................................................................... 3
7. UTILITIES. ...................................................................................................................................................... 3
8. ALTERATIONS AND IMPROVEMENTS. ................................................................................................... 3
9. MAINTENANCE AND REPAIRS. ................................................................................................................. 3
10. INDEMNIFICATION. ..................................................................................................................................... 3
11. INSURANCE. .................................................................................................................................................. 3
12. HAZARDOUS SUBSTANCES. ...................................................................................................................... 3
13. ENTRY AND INSPECTION. .......................................................................................................................... 4
14. REMOVAL OF PERSONAL PROPERTY; RESTORATION OF PROPERTY. ............................................ 4
15. ASSIGNMENT AND SUBLETTING. ............................................................................................................ 4
16. DEFAULT AND REENTRY. .......................................................................................................................... 4
17. FORCE MAJEURE. ......................................................................................................................................... 4
18. SUCCESSORS AND ASSIGNS. ..................................................................................................................... 4
19. ENTIRE AGREEMENT................................................................................................................................... 4
20. AMENDMENTS. ............................................................................................................................................. 4
21. NOTICES. ........................................................................................................................................................ 4
22. WARRANTY OF TITLE. ................................................................................................................................ 5
23. NON-DISCRIMINATION IN USE AND AVAILABILITY. .......................................................................... 5
24. ACCIDENT REPORTS. ................................................................................................................................... 5
25. AMERICANS WITH DISABILITIES ACT AND TITLE 24 COMPLIANCE. .............................................. 5
26. SIGNS AND ADVERTISING. ........................................................................................................................ 5
27. LIENS AND ENCUMBRANCES. ................................................................................................................... 5
28. JURISDICTION. .............................................................................................................................................. 5
29. COUNTERPARTS. .......................................................................................................................................... 5
30. FURTHER ASSURANCES. ............................................................................................................................ 5
31. RIGHTS AND OBLIGATIONS UNDER THIS LEASE. ................................................................................ 5
32. INVALIDITY. .................................................................................................................................................. 5
33. SURVIVAL. ..................................................................................................................................................... 6
34. EXHIBIT A ...................................................................................................................................................... 7
35. EXHIBIT B ....................................................................................................................................................... 8
36. EXHIBIT C ....................................................................................................................................................... 9
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Lease Agreement—5 Station Place
August 10, 2021
LEASE AGREEMENT
5 Station Place, Salinas, California
THIS LEASE AGREEMENT is made and entered into this 10th day of August 2021, by and between the City of Salinas, a California charter city and municipal corporation, hereinafter called the “City,” and LAZ Parking California, LLC, a Connecticut Limited Liability Corporation, hereinafter called “Tenant.”
RECITALS
WHEREAS, the City is the owner of that real property (the “Property”) in the City of Salinas, California, County of Monterey, said Property being Monterey County Assessor’s Parcel Number 002 -171-033-000; and
WHEREAS, Tenant desires to utilize a portion of the Property consisting of approximately 394 square feet of space at 5 Station Place, which is more particularly shown on Exhibit A, attached hereto and incorporated herein by reference (the “Premises”); and
WHEREAS, the City desires to lease the Premises to the Tenant for the term hereinafter pro vided and the Tenant desires to accept such Lease upon the terms and subject to the conditions contained herein .
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this Lease, the parties agree as follows:
AGREEMENT
1. PREMISES. The City hereby leases to the Tenant and the Tenant hereby leases from the City, upon the terms and conditions herein set forth, that certain real property and its appurtenances, situated at 5 Station Place, Salinas, CA 93901 and described more particularly in Exhibit A, which is attached and incorporated herein by reference. The Tenant shall accept the Premises “as -is, where -is” following an inspection of the premises and execution of the “Acceptance of the Leased Premises” provided in Exhibit B to this Agreement.
2. TERM. This Lease shall be for a term of two (2) years, commencing on August 10 , 2021, ("Commencement Date"), and ending on August 31, 2023 (the “Initial Term”), unless terminated earlier pursuant to the provision of this Lease. The Tenant may request a renewal of the Lease for an additional two (2) year period from September 1, 2023 to August 31, 2025 (the “Extended Term”) by submitting a written request to the City at least sixty (60) days prior to the expiration of the Initial Term. The terms and conditions of a renewed lease shall be subject to the negotiation of the parties to this Lease.
Upon the expiration or the earlier termination of this Lease, Tenant shall peaceably vacate the Premises and any and all improvements located thereon and deliver the same to the City in at least as good a condition as it was delivered to Tenant on the Commencement Date, reasonable wear and tear and casualty excepted.
Any holding over after the expiration of the term, or any renewal thereof, with the consent, express or implied, of the City, shall be construed to be a tenancy from month to month, and shall otherwise be on the terms and conditions herein specified, as far as applicable. This Lease may only be extended upon then mutual written agreement of the parties.
3. RENT. Commencing on the Commencement Date and continuing through the entire term of this Lease, Tenant shall pay to the City, as rent, the am ount of eight-hundred sixty-seven dollars ($867.00) per month (“Rent”) for the use and the possession of the Premises . If pursuant to Section 2 “Term” th is Lease is extended , this Rent shall be increased to nine hundred ten dollars ($910.00) per month, effective at the beginning of the Extended Term.
4. USE. Tenant shall use the Premises for general office use. Tenant may alter said use to any lawful purpose, upon the written consent of the City, which consent shall not be unreasonably withheld.
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5. COMPLIANCE WITH LAWS. Tenant shall comply with all statutes, ordinances, regulations, and requirements of all governmental entities, both federal and state and county or municipal relating to Tenant’s use and occupancy of the Premises whether those statutes, ordinances, regulations, and requirements are now in force or are subsequently enacted.
6. TAXES AND ASSESSMENTS. This Lease may create a taxable possessory interest, the timely payment of whic h, together with any other taxes or assessments imposed against Tenant or the activities of Tenant shall be paid by Tenant before they become delinquent. The City shall be responsible for the payment of all real property assessments imposed on the Premise s by any improvement district or special taxing authority. During the lease term, all real estate taxes for the Premises shall be paid by the City.
7. UTILITIES. City shall be responsible for all charges for the furnishing of gas, water, electrici ty, telephone service, garbage pickup and disposal, and other public utilities to the Premises during the term of this Lease.
8. ALTERATIONS AND IMPROVEMENTS. Prior to occupancy, Tenant acknowledges personal inspection of the Premises and of the surrounding areas and evaluation of the extent to which the physical condition of the Premises and of the surrounding area will or may affect the operation of the Premises. By signing the “Acceptance” provided in Exhibit B and attached hereto, the Tenant has completed its evaluation, and accepts the Leased Premises in “As-is, Where-is” condition, provided that the City shall clean and refurbish the interior of the Premises to reasonable standards prior to the Commencement Date. Tenant shall, at its sole cost and expense, make any and all alterations necessary to use the Premises for Tenant’s business purposes. The City has made no other representations or warranties as to the condition of the Pre mises or to its fitness for the uses intended by the Tenant.
Tenant shall make no demand upon the City for any improvements, rehabilitation, repairs or alterations of the Premises.
Any alterations, remodeling or utility installations by Tenant during the term of the Lease shall be performed only upon the City’s written approval and shall be done in a good and workmanlike manner, with good and sufficient materials, and in compliance with all applicable laws, regulations, and building codes. All improvements, alterations and fixtures (including, but not limited to, trade fixtures as that term is defined in Civil Code Section 1019) made or placed in or on the Premises by Tenant during the term of this Lease shall be owned and insured by Tenant, and such improvements, alterations, and fixtures may be depreciated for income tax purposes by Tenant, provided that Tenant removes, at its sole expense, such improvements, alterations , and fixtures at or prior to the expiration or sooner termination of this Lease and restores the Premises to their original condition as nearly as practicable. In the event that Tenant does not so remove such improvements, alterations , and fixtures, they shall become the property of the City for no further consideration of any kind, and Tenant shall execute any documents that may be required to convey its interest in such improvements, alterations and fixtures to the City.
9. MAINTENANCE AND REPAIRS. The City shall keep in good repair the exterior walls, roofs, parking lot, sidewalks, and heating and cooling system, excluding all windows, doors, glazing, and landscaping of the building. Except as provided in the preceding sentence, Tenant, at its sole cost, shall keep and maintain the Premises and every part thereof, both in side and outside, including all windows, doors, glazing, and landscaping clean and in good repair, and including, but not limited to, the repair of all appurtenances to the same condition or better as when received, damages by fire, act of God, or by the e lements excepted, and to remove all of Tenant's signs from the Premises upon termination or expiration of this agreement. Further, Tenant shall provide its own custodial services for said Premises.
10. INDEMNIFICATION. Tenant shall defend, hold harmless, and indemnify City and its officers, officials, employees, and volunteers from and against any and all liability, loss, damage, expense, and costs (including without limitation costs and fees of litigation) of every nature arising out of or in connection with this Lease, Tenant’s performance of work hereunder, or Tenant’s failure to comply with any of its obligations contained in this Lease, except such loss or damage which was caused by the sole negligence or willful misconduct of the City.
11. INSURANCE. Tenant shall, at its own cost and expense, maintain the insurance specified and required at Exhibit C hereto.
12. HAZARDOUS SUBSTANCES. Tenant shall not use any portion of the building or parking lot for DocuSign Envelope ID: 9E277808-9FCB-4554-81D9-4EEADEB28851 City of Salinas Page 4 of 10
Lease Agreement—5 Station Place
August 10, 2021
the storage or use of flammable or hazardous substances. The City understands and acknowledges that vehicles parked at the parking spaces will use hazardous substances in order to operate, including gasoline and oil. Tenant shall be solely responsible for the clean-up and remediation of any spill or discharge or any hazardous substances including, but not limited to, gasoline and oil from such vehicles. As required by law, Tenant shall immediately notify the City in writing of any material release of haz ardous substances and of any hazardous substances that have come to be located on or beneath the Premises.
13. ENTRY AND INSPECTION. The City shall have the right to enter the Premises at all reasonable times for the purpose of inspection, posting notices, or other lawful purposes.
14. REMOVAL OF PERSONAL PROPERTY; RESTORATION OF PROPERTY. At the expiration or the earlier termination of this Lease, Tenant shall at its sole cost and expense remove all items of personal property and all improvements placed in the Premises by Tenant and shall clean the Premises such that the same is restored to at least as good as condition as it was at the time of commencement of this Lease.
15. ASSIGNMENT AND SUBLETTING. Tenant shall not encumber, assign, or otherwise transfer this Lease, any right or interest in this Lease, or any right or interest in the Premises or any improvements that may now or hereafter be constructed or installed on the Premises to any other person or entity without first obtaining the express written consent of the City. The Tenant shall ensure that the terms and the conditions of this Lease are incorporated into the terms and the conditions of any sublease or assignment, including the sublease from the Tenant.
16. DEFAULT AND REENTRY. In the event of any breach of any obligation to be performed by Tenant hereunder, including non-payment of rent, which is not cured within thirty (30) days of the date upon which notice of such breach is given to Tenant, or upon the abandonment or vacation of the Premises by Tenant, the City, in addition to any other rights or remedies as may be provided by law, shall have the right to terminate this Lease, immediately reenter the Premises, without notice, and remove all persons and property from the Premises.
17. FORCE MAJEURE. If either party is unable to perform its duties under this Lease due to acts of God, strikes, lockouts, labor disputes, inability to obtain labor, governmental restrictions, regulations or controls, civil commotion, fire or other casualty, emergency , or any other cause beyond the reasonable contr ol of the party, such non-performing party shall be excused from performance by the other party, and shall not be in breach of this Lease, for a period equal to any such prevention, delay or stoppage.
18. SUCCESSORS AND ASSIGNS. Except as otherwise provided for herein, the parties expressly agree that, subject to the terms of this Lease, all terms and conditions of this Lease shall extend to and be binding upon or inure to the benefit of the heirs, executors, administrators, personal repr esentative, assigns and successors in interest of both the respective parties hereto.
19. ENTIRE AGREEMENT. This Lease expresses the whole contract between the parties, there being no representations, warranties, or other understandings not here exp ressly set forth or provided. This Lease may be executed in duplicate, each of which when so executed and delivered shall be deemed an original, but such duplicate together shall constitute but one and the same instrument.
20. AMENDMENTS. This Lease may be amended at any time and from time to time, provided that no amendment to this Lease shall be legally enforceable against the City or Tenant unless it is in writing, executed and acknowledged by both parties.
21. NOTICES. All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been given fully, when made in writing and personally delivered as shown below, or deposited in the United States mail, certified, return receipt requested, postage prepaid, and addressed as follows:
City: City of Salinas Tenant: Rod Howery, RVP 200 Lincoln Avenue 5901 Christie Ave, Ste. 202 Salinas, CA 93901 Emeryville, CA 94608 Attn: City Manager (510) 250-2052
w/copy to: City Attorney [email protected] DocuSign Envelope ID: 9E277808-9FCB-4554-81D9-4EEADEB28851 City of Salinas Page 5 of 10
Lease Agreement—5 Station Place
August 10, 2021
22. WARRANTY OF TITLE. The City warrants and represents that it has the sole and the exclusive title to the Premises such that it may enter into this Lease. The City further warrants and represents that the execution, delivery, or performance of this Lease will not conflict wit h or violation any other agreements by which the City is bound, or any law, rules, regulation, or ordinance by which the City is bound.
23. NON-DISCRIMINATION IN USE AND AVAILABILITY. Tenant shall not discriminate on the basis of a person’s place of res idence, their race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex , or sexual orientation, against any participant in, recipient of, or applicant for any services or programs provide d by at the Premises. Tenant shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and non -discrimination in the provision of any services or programs offered at the Premises.
24. ACCIDENT REPORTS. Tenant shall immediately report to the City in writing any accident causing or reasonably estimated to have caused more than one thousand dollars ($1,000) worth of property damage or any serious injury to person or to property that occurs on or in connection with the Premises. This written report shall contain the names and addresses of the parties involved, a statement of the circumstances, the date and the hour, the names and the addresses of any witnesses, and any other pertinent information.
25. AMERICANS WITH DISABILITIES ACT AND TITLE 24 COMPLIANCE. Prior to occupancy, City shall ensure and shall be responsible for ensuring that all building improvements and other improvements on the Premises are compliant with the Americans with Disabilities Act and Title 24 of the California Code of Regulations and Tenant shall be solely responsible for making any repairs or improvements n ecessary to bring such buildings, structures, and other facilities into compliance. Consistent with the provisions of Section 8 of this agreement, (Alterations and Improvements), the Tenant shall be responsible for compliance with the Americans with Disabilities Act and Title 24 of the California Code of Regulations for those changes to the premises o ccurring after occupancy by the Tenant.
26. SIGNS AND ADVERTISING. Tenant shall not place or erect any temporary or permanent signs or advertising upon the Premises which will cause damage or which will otherwise alter the physical structure of any structure or building located on the Premises. The placement or erection of any sign or advertising upon the Premises shall be in accordance with the requirements of the Salinas City Code in effect at the time such sign is proposed to be placed or erected.
27. LIENS AND ENCUMBRANCES. Tenant shall keep the Premises free and clear of any liens or encumbrances of any kind whatsoever created by Tenant or any of its acts or omissions.
28. JURISDICTION. This Lease shall be administered and interpreted under the laws of the State of California. Jurisdiction of litigation arising from this Lease shall be in the State of California, in the County of Monterey, or in the appropriate federal court with jurisdiction over the matter. In case suit shall be brought to interpret or to enforce this Lease, or because of the breach of any other covenant or provision herein contained, the prevailing party in such action shall b e entitled to recover their reasonable attorney fees in addition to such costs as may be allowed by the court. City’s attorney fees, if awarded, shall be calculated at the market rate.
29. COUNTERPARTS. This Lease may be executed in one or more counter parts, each of which shall be deemed an original, but all of which together shall constitute a single agreement.
30. FURTHER ASSURANCES. Both parties agree to take whatever action may be necessary to perform their respective and their mutual obligations under this Lease.
31. RIGHTS AND OBLIGATIONS UNDER THIS LEASE. By entering into this Lease, the Parties do not intend to create any obligations express or implied other than those set out herein; further, this Lease shall not create any rights in any party not a signatory hereto.
32. INVALIDITY. The invalidity or unenforceability of any provisions of this Lease shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.
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33. SURVIVAL. In no way shall the insurance requirements herein limit Tenant’s indemnification obligations hereunder, and Tenant’s indemnification obligations shall survive termination of this Lease.
IN WITNESS WHEREOF, the undersigned, as authorized representatives of the parties, have entered into this Lease as of the date first written above.
CITY OF SALINAS LAZ PARKING CALIFORNIA, LLC
_______________________________ _______________________________ Kimbley Craig, Mayor Michael Harth
Chief Cultural Officer
APPROVED AS FORM:
_________________________________
□ Christopher A. Callihan, City Attorney or
□ Rhonda Combs, Assistant City Attorney
ATTEST:
_______________________________
Patricia Barajas, City Clerk
DocuSign Envelope ID: 9E277808-9FCB-4554-81D9-4EEADEB28851
EXHIBIT A
The Premises, located at 5 Station Place, being a portion of Monterey County Assessor’s Parcel Number 002-171-033-000
DocuSign Envelope ID: 9E277808-9FCB-4554-81D9-4EEADEB28851
EXHIBIT B
ACCEPTANCE OF THE LEASED PREMISES
I, Michael Harper , Operations Manager , representing LAZ Parking California, LLC , have inspected the offices and common grounds at 5 Station Place , Salinas California, owned by the City of Salinas. I have determined that this building and property will be suitable for my business practices, and I hereby accept the Leased Premises in “as-is, where-is” condition.
Signature: __________________________________ Date________________
DocuSign Envelope ID: 9E277808-9FCB-4554-81D9-4EEADEB28851 8/26/2021 | 8:22 AM PDT
EXHIBIT C
INSURANCE REQUIREMENTS
Tenant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Tenant, his agents, representatives, employees or subcontractors.
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 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.
2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Tenant has no owned autos, hired, (Code 8) and non -owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage.
3. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.
4. Property insurance: against all risks of loss to any tenant personal property, improvements, or betterments at full replacement cost with no coinsurance penalty provision.
If the Tenant maintains broader coverage and/or higher limits than the minimums shown above, the Entity requires and shall be ent itled to the broader coverage and/or the higher limits maintained by the Tenant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Entity.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The Entity, 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 Tenant 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 Tenant’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).
Primary Coverage
For any claims related to this contract, the Tenant’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 as respects the Entity, its officers, officials, employees, and volunteers. Any insurance or self - insurance maintained by the Entity, its officers, officials, employees, or volunteers shall be excess of the Tenant’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 Entity.
Waiver of Subrogation
Tenant hereby grants to Entity a waiver of any right to subrogation which any insurer of said Tenant may acquire against the Entity by virtue of the payment of any loss under such insurance. Tenant 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 Entity has received a waiver of subrogation endorsement from the insurer.
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Self-Insured Retentions
Self-insured retentions must be declared to and approved by the Entity. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or Entity.
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 Entity.
Verification of Coverage
Tenant shall furnish the Entity with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the Entity before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Tenant’s obligation to provide them. The Entity reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
DocuSign Envelope ID: 9E277808-9FCB-4554-81D9-4EEADEB28851 City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-405, Version: 1
Sale of City-Owned Property to the Monterey County Office of Education; Declaration of Exempt Surplus Land
Approve a Resolution declaring 342 Front St. and 323 California St. exempt surplus land no longer needed by the City, approving a Purchase and Sale Agreement to sell the properties to the Monterey County Office of Education in the amount of $2,500,000, and authorizing the Mayor to execute the agreement.
City of Salinas Printed on 9/19/2025Page 1 of 1
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CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: SEPTEMBER 23, 2025
DEPARTMENT: OFFICE OF THE CITY MANAGER
FROM: LISA MURPHY, ASSISTANT CITY MANAGER
CHRISTOPHER CALLIHAN, CITY ATTORNEY
TITLE: SALE OF CITY -OWNED PROPERTY TO THE MONTEREY
COUNTY OFFICE OF EDUCATION ; DECLARATION OF
EXEMPT SURPLUS LAND
RECOMMENDED MOTION:
A motion to approve a Resolution declaring 342 Front St. and 323 California St. exempt surplus land no longer needed by the City, approving a Purchase and Sale Agreement to sell the properties to the Monterey County Office of Education in the amount of $2,500,000 , and authorizing the Mayor to execute the agreement.
EXECUTIVE SUMMARY:
The City has been leasing a building and associated parking lot to the Monterey County Office of Education (MCOE) since 2003. They have been using the location as a child development center.
The MCOE would like to purchase the properties for the same use.
BACKGROUND:
The City is the owner of the real property located at 342 Front St. identified as Monterey County Assessor’s Parcel Number 002 -213-028, which is improved with a building, and 323 California St., identified as Monterey County Assessor’s Parcel Number 002 -213-017, which is improved with a parking lot. The City has been leasing the properties to MCOE since 2003. MCOE utilizes the building as a Child Development Center.
This summer, the MCOE approached the City about purchasing the properties. Staff engaged the services of a local appraiser to determine the market value of the properties. The appraised value was $2,570,000. The City Council authorized staff to enter into negotiations with MCOE for the sale of the properties. MCOE has offered to purchase both properties for $2,500,000. While this is slightly below the appraised value, staff believes this is reasonable and recommends authorizing the sale of the properties for the offered amount.
The properties are exempt from the Surplus Land Act (Government Code section 54221(f)(1)(D)) because they are being transferred by the City to another local agency (MCOE) for their use.
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Section 12-16 of the Salinas Municipal Code provides that the sale of City owned land to other government agencies is exempt from the City’s normal requirements for public auction and purchasing if the City Council approves a resolution finding the public convenience, necessity, or welfare requires such sale.
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 possibil ity 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:
Government Code §84308/Levine Act does not apply to this item.
STRATEGIC PLAN INITIATIVE:
The sale of the Front St. and California St. properties is in alignment with the City Council’s Strategic Plan of City Services to ensure fiscal responsibility and financial management. The properties are no longer needed by the City, and the proceeds of the sale will benefit the General Fund.
DEPARTMENTAL COORDINATION:
The City Attorney’s office coordinated with the City Manager’s office on this item.
FISCAL AND SUSTAINABILITY IMPACT:
The sale of the properties will result in an additional $2.5 million in one-time revenue. This sale is not included in the FY 2025-26 Adopted Budget and therefore will remain in the General Fund.
Fund
Appropriation
Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 24-25
Operating
Budget Page
Last Budget
Action (Date,
Resolution)
1000 00.0000-
57.8030
Other Revenue
Land & Bldg. Sale
n/a $2,500,000 n/a n/a
Page | 3
ATTACHMENTS:
Resolution
Purchase and Sale Agreement
RESOLUTION NO. _______ (N.C.S.)
A RESOLUTION DECLARING PROPERTY OWNED BY THE CITY OF SALINAS AND LOCATED AT 342 FRONT STREET AND 323 CALIFORNIA STREET IN THE CITY OF
SALINAS, COUNTY OF MONTEREY, TO BE EXEMPT SURPLUS LAND PURSUANT TO GOVERNMENT CODE SECTION 54221 AND NOT NECESSARY FOR THE CITY’S USE AND AUHTORIZING THE MAYOR TO ENTER INTO A PURCHASE AND
SALE AGREEMENT WITH MONTEREY COUNTY OFFICE OF EDUCATION, EARLY LEARNING PROGRAM FOR 342 FRONT STREET AND 323 CALIFORNIA STREET WHEREAS, the Surplus Land Act, codified at Government Code section 54220 et seq.(“Surplus Land Act”) requires the City of Salinas to formall y declare City-owned properties as “surplus land” or “exempt surplus land ” prior to taking actions to dispose of such properties; and
WHEREAS, the City of Salinas (“City”) is the owner of real property located at 342 Front Street and 323 California Street in the city of Salinas, County of Monterey, State of California, more particularly described in Exhibit A, attached hereto and incorporated herein by this reference (the “Properties”); and
WHEREAS, the property located at 34 2 Front Street (APN 002 -213-028-000) is approximately 46,625 square feet in size (inclusive of a building consisting of approximately 12,786 square feet, and other improvements ) and the property located at 323 California Street (APN 002-213-028-000) is approximately 6,500 square feet in size (consisting of an improved parking lot); and
WHEREAS, the Properties proposed to be sold to the Monterey County Office of Education, Early Learning Program (“MCOE”) pursuant to Government Code section 54221(f)(1)(D) as “Surplus land that a local agency is transferring to another local, state, or federal agency…for the receiving agency’s use”; and
WHEREAS, the City Council finds and determines that (1) the Properties are no longer necessary for City purposes; (2) the Properties have been leased to MCOE since February 11, 2003 and MCOE has continuously occupied and used the Properties since that time; and (3) that MCOE is a governmental agency and, consequently, the Properties may be directly sold by the City to MCOE pursuant to Salinas Municipal Code section 12-11; and WHEREAS, the City Council desires to declare that the Properties are exempt surplus land; and
WHEREAS, the Staff Report presented to the City Council on September 23, 2025, together with this Resolution, contain the fact ual background and supporting information upon which the declaration and findings set forth herein are based; and WHEREAS, the City Council finds that the proposed transfer of the Properties to MCOE and the City Council’s declaration of the Properties as exempt surplus land pursuant to the Surplus Land Act (Government Code section 54220 et seq.) is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15060(c)(3), because neither action i s a project as defined by CEQA Guidelines section 15378.
Furthermore, approval of this Resolution does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF SALINAS as follows:
Section 1. The foregoing recitals are true and correct and are incorporated herein by this reference.
Section 2. The City Council finds that the Properties are not necessary for the City’s use.
Section 3. The City Council hereby declares that the Properties are exempt surplus land pursuant to Government Code section 54221(f)(1)(D) because it is surplus land that the City is transferring to another local, state, or federal agency for the receiving agency’s use.
Section 4. The Mayor of Salinas is hereby authorized to execute a Purchase and Sale Agreement to transfer the Properties to MCOE, in the form approved by the City Attorney, no less than thirty (30) days following the City’s submission of this Resolution (Notice of Exemption Determination) to the State of California ’s Department of Housing and Community Development , per HCD Guidelines.
Section 5. The City Manager , the City Attorney, and their designees are hereby authorized and directed to take whatever additional actions as may be necessary or proper to effectuate the intent of this Resolution, including disposition of the Properties as provided herein, and any such actions previously taken are hereby ratified and confirmed.
Section 6. If any section, subsection, paragraph, sentence, clause, or phrase of this Resolution is declared by a court of competent jurisdiction to be unconstitutional or otherwise invalid, such decision shall not affect the remaining portions of this Resolution.
Section 7. This Resolution shall take effect immediately upon its approval by the City Council.
PASSED AND APPROVED this 23rd day of September, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
_________________________________
Dennis Donohue, Mayor
ATTEST:
_______________________________
Patricia M. Barajas, City Clerk
Attachment: Exhibit A
1 PURCHASE AND SALE AGREEMENT
(342 Front Street and 323 California Street)
This Purchase and Sale Agreement (“Agreement”) is dated as of September 23, 2025 (“Effective Date”), and is being entered into by and between the City of Salinas, a California charter City and municipal corporation, hereinafter referred to as “Seller”, and Monterey County Office of Education, a local educational agency, hereinafter referred to as “ Buyer”, for the acquisition by Buyer of certain real property described below. The Seller and Buyer may sometimes individually be referred to herein as a “party” and may collectively be referred to herein as the “parties.”
RECITALS
A. The Seller is the owner in fee of that certain real property consisting of approximately 46,625 square feet of land (inclusive of a building consisting of approximately 12,786 square feet) generally located at 342 Front Street (Assessor’s Parcel Number [APN] 002-213-028-000) and that other certain real property consisting of approximately 6,500 square feet of land (consisting of an improved parking lot) generally located at 323 California Street (Assessor’s Parcel Number [APN] 002-213-017-000) in the City of Salinas, County of Monterey, State of California (collectively, the “Properties”) as more particularly described and shown in the attached “Exhibit A”.
B. The Properties are in good condition and have been continuously used by the Buyer as a child development center pursuant to a lease agreement entered into on February 11, 2003, by and between the Seller and the Buyer (“Lease Agreement”).
C. Seller has authority to convey the Properties to the Buyer pursuant to the Salinas Charter section 1.1, Article 2 of Chapter 12 of the Salinas Municipal Code, and Resolution No. ______ (N.C.S.) approved by the Salinas City Council on September 23, 2025.
D. The Salinas City Council, in approving this Agreement, finds and determines, among other things, that
1. the Properties are no longer necessary for municipal purposes;
2. Buyer is a governmental agency and, consequently, the Properties may be directly sold by Seller to Buyer pursuant to Salinas Municipal Code section 12-11; and
3. the Properties are “exempt surplu s land” under the Surplus Land Act (Government Code section 54221(f)(1)(D)) because the Properties are being transferred by Seller to a state agency for the Buyer’s agency use. The Salinas City Council took formal action during a regular public meeting held on September 23, 2025, through the approval of Resolution No. ____ (N.C.S.), declaring that the Properties are surplus and no longer necessary for the Seller’s use or municipal purposes.
2 E. The Salinas City Council finds and determines that the sale of the Properties, as set forth in this Agreement, is in the best interests of the City and will promote the health, safety, and welfare of the City and its residents by allowing for the continued use of the Properties by Buyer to support its educational purposes.
NOW, THEREFORE, Seller and Buyer agree as follows;
1. Agreement to Sell and to Purchase. Buyer agrees to buy the Properties from Seller and Seller agrees to sell the Properties to Buyer upon the terms and for the consideration set forth in this Agreement.
2. Purchase Price. The purchase price of the Propert ies is two million five hundred thousand dollars ($2,500,000) to be paid in cash to the Seller by the Buyer at the Close of Escrow (the “Purchase Price”).
3. Opening Escrow. To accomplish the purchase and the transfer of the Properties from the Seller to the Buyer, the Seller has established escrow numbers _#7315137 for 342 Front St. and escrow #7315130 for 323 California St. with the Salinas, California escrow office of First American Title Company (the “Escrow Holder”). The Buyer and the Seller shall execute and deliver written instructions to the Escrow Holder to accomplish the terms hereof, which instructions may be joint and shall be consistent with this Agreement.
4. Close of Escrow. The Close of Escrow shall occur no later than the date fifteen (15) days after all of the following conditions shall be established , prior to or concurrently with, and as conditions of, the Close of Escrow:
4.1. Seller and Buyer shall have executed and delivered to the Escrow Holder all documents and instruments required to be executed and delivered, all in form and substance satisfactory to Seller, Buyer, and the Escrow Holder, and Buyer shall have submitted full payment of the Purchase Price.
4.2. There shall exist no condition, event or act which would constitute a breach or default under this Agreement which upon the giving of notice or the passage of time, or both, would constitute such a breach or default.
4.3. All representations and warranties of the parties contained herein shall be true and correct as of the Close of Escrow.
4.4. Any and all expenses incurred relating to inspecting the Property by Buyer shall be borne by Buyer.
4.5. Ad valorem taxes, if any, shall be prorated as of the date of conveyance of the Property from the Seller to the Buyer. Seller and the Buyer shall each pay half of the cost of title
3 insurance, transfer tax, Escrow Holder document preparation, recordation fees, premiums of owners and lenders title insurance and the escrow fees of the Escrow Holder, if any, and any additional costs to close the escrow. The costs borne by Buyer are in addition to the Purchase Price for the Property.
5. Conveyance of Title and Possession. Seller agrees to convey by Grant Deed (in substantially the form shown on the attached (Exhibit B) to Buyer all of Seller’s title and interest in and to the Propert ies. Notwithstanding anything to the contrary set forth herein, t he Seller makes no representation or warranty regarding title to the Properties or the removal of any Exceptions from title to the Property. Further, Seller has no obligation to provide title to the Properties clear of encumbrances and shall not incur any liability for title defects unless Seller expressly agrees to remove one or more encumbrances pursuant to this Section; however, Buyer shall not be obligated to accept title to the Propert ies unless it is conv eyed free and clear of all recorded and unrecorded liens, encumbrances, assessments, easements, leases, taxes and other title or survey matters (“ Exceptions”) except such matters which are acceptable to the Buyer, in Buyer’s sole discretion, following Buyer’s review of a title report to be provided by the Seller or Escrow Holder.
6. Title Insurance Policy. Escrow Holder shall, following recording of the Deed, provide Buyer with a standard owner’s CLTA (or extended coverage ALTA, at the request of Buyer) policy of title insurance in the amount of the Purchase Price, issued by the Escrow Holder, together with any endorsements and additional coverage reasonably requested by Buyer, showing fee simple title to the Propert ies vested in Buyer, subject only to the Exceptions set forth in Section 5 approved by Buyer and the printed exceptions and stipulations in the policy. Title charges shall be paid by the Buyer.
7. Condition of Property.
7.1. Buyer recognizes that Seller, along with any licensed real estate agent(s) involved in this transaction, make no claims as to the validity of any property disclosure information.
Buyer is required to perform their own inspections, tests, and investigations to verify information provided by the Seller.
7.2 Buyer specifically acknowledges and agrees that the Seller is selling and the Buyer is buying the Properties on an “AS IS WITH ALL FAULTS” basis and that the Buyer is not relying on any representations or warranties of any kind whatsoever, express or implied, from the Seller as to any matters concerning the Properties, including without limitation (1) the quality, nature, adequacy, and physical condition of the Properties (including, without limitation, topography, climate, air, water rights, water, gas electricity, utility services, grading, drainage, sewers, access to public roads and related conditions); (2) the quality, nature, adequacy, and physical condition of so ils, geology, and groundwater; (3) the existence, quality, nature, adequacy, and physical condition of utilities serving the Properties; (4) the development potential of the Properties, and its use, habitability, merchantability, or fitness, suitability, value or adequacy of the Properties for
4 any particular purpose; (5) the zoning or other legal status of the Properties or any other public or private restrictions on the use of the Properties; (6) the compliance of the Properties or its operation with any a pplicable codes, laws, regulations, statutes, ordinances, covenants, conditions, and restrictions of any governmental or quasi -governmental entity or of any other person or entity; (7) the presence or absence of hazardous materials on, under or about the Properties or the adjoining and neighboring properties; and (8) the condition of title to the Properties.
The Buyer affirms that it has not relied on the skill or the judgment of the Seller or any of its respective agents, employees or contractors to selec t or furnish the Propert ies for any particular purpose, and that the Seller makes no warranty that the Propert ies are fit for any particular purpose. The Buyer acknowledges that it shall use its independent judgment and make its own determination as to the scope and the breadth of its due diligence investigation which investigation of the physical, environmental, economic, and legal condition of the Propert ies (including, without limitation, whether the Properties are located in an area which is designated as a special flood hazard area, dam failure inundation area, earthquake fault zone, seismic hazard zone, high fire severity area or wildland fire area, by any federal, state or local entity). The Buyer undertakes and assumes all risks associated with all matters pertaining to the Properties location in any area designated as a special flood hazard area, dam inundation area, earthquake fault zone, seismic hazard zone, high fire severity area or wildland fire area, by any federal, state or local entity.
7.3. Survival. The terms and the conditions of this section 7 shall expressly survive the Close of Escrow, shall not merge with the provisions of the Grant Deed, or any other closing documents and shall be deemed to be incorporated by reference into the Grant Deed. The Seller is not liable or bound in any manner by any oral or written statements, representations or information pertaining to the Properties furnished by any contractor, agent, employee, servant or other person. The Buyer acknowledges that the Purchase Price reflects the “as is” nature of this sale and any faults, liabilities, defects or other adverse matters that may be associated with the Properties. The Buyer has fully reviewed the disclaimers and waivers set forth in this Agreement with the Buyer’s counsel and understands the significance and effect thereof.
7.4. Acknowledgement. The Buyer acknowledges and agrees that (i) to the extent required to be operative, the disclaimers of warranties contained in this section are “conspicuous” disclaimers for purposes of all applicable laws and other legal requirements, and (ii) the disclaimers and other agreements set forth in such sections are an integral part of this Agreement, that the Purchase Price has been adjusted to reflect the same and that the Seller would not have agreed to sell the Properties to the Buyer for the Purchase Price without the disclaimers and other agreements set forth in this section.
7.5. Buyer’s Release of the Seller. The Buyer, on behalf of itself and anyone claiming by, through or under the Buyer, hereby waives its right to recover from and fully and irrevocably releases the Seller and its City Council members, officers, employees, representatives, legal
5 counsel, and agents (“Released Parties”) from any and all claims, responsibility and/or liability that the Buyer may have or hereafter acquire against any of the Released Parties for any costs, loss, liability, damage, expenses, demand, action or cause of action a rising from or related to (i) the condition (including any construction defects, errors, omissions or other conditions, latent or otherwise), valuation, salability or utility of the Properties, or their suitability for any purpose whatsoever, (ii) any pres ence of Hazardous Materials (as hereinafter defined), and (iii) any information furnished by the Released Parties under or in connection with this Agreement.
7.6. Scope of Release. The release set forth in section 7.6 hereof includes claims of which the Buyer is presently unaware or which the Buyer does not presently suspect to exist which, if known by the Buyer, would materially affect the Buyer’s release of the Released Parties.
The Buyer specifically waives the pro vision of any statute or principle of law that provides otherwise. In this connection and to the extent permitted by law, the Buyer agrees, represents and warrants that the Buyer realizes and acknowledges that factual matters now unknown to the Buyer may have given or may hereafter give rise to causes of action, claims, demands, debts, controversies, damages, costs, losses, and expenses which are presently unknown, unanticipated and unsuspected, and the Buyer further agrees, represents, and warrants that t he waivers and releases herein have been negotiated and agreed upon in light of that realization and that the Buyer nevertheless hereby intends to release, discharge, and acquit the Sellers from any such unknown causes of action, claims, demands, debts, co ntroversies, damages, costs, losses, and expenses. Accordingly, the Buyer, on behalf of itself and anyone claiming by, through or under the Buyer, hereby assumes the above-mentioned risks and hereby expressly waives any right the Buyer or anyone claiming by, through or under the Buyer, may have under Section 1542 of the California Civil Code, which reads as follows:
“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with debtor.”
Notwithstanding the foregoing, this release shall not apply to, nor shall the Seller be released from, the Seller’s actual fraud or misrepresentation.
8. Hazardous Materials. As used in this Agreement, the term “Hazardous Materials” shall mean any chemical, compound, material, mixture, or substance that is now or may in the future be defined or listed in, or ortherwise classified pursuant to any environmental law as a “hazardous substance,” “hazardous material,” “hazardous waste,” “extremely hazardo us waste,” “infectious waste,” “toxic substance,” “toxic pollutant,” or any other formulation intended to define, list, or classify substances by reason of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, or toxicity, under: the California Hazardous Waste Control Law (California Health and Safety Code, Division 20, Chapter 6.5); the Safe Drinking Water and Toxic Enforcement Act of 1986 (California Health and Safety Code, Division 20, Chapter 6.6); Underground Storage of Hazardous Substances (California Health and Safety
6 Code Division 20, Chapter 6.7); Hazardous Substance Account Act (California Health and Safety Code , Division 45); the Hazardous Release Response Plans and Inventory (California Health and Safety Code, Di vision 20, Chapter 6.95); the Clean Water Act (33 U.S.C. 1251, et. seq.); the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. 9601, et. seq.); the Emergency Planning and Community Right to Know Act of 1986 (42 U.S.C. 1100, e t. seq.); Control of Radioactive Contamination of the Environment (California Health and Safety Code, Division 104, Part 9, Chapter 5); the Clean Air Act (42 U.S.C. 7401, et. seq.); 40 Code of Federal Regulations Section 302.4; or any federal, state, or lo cal statute, ordinance, regulation, administrative order or decision, or judicial decision interpreting or applying any of these provisions, as well as any amendments of any of these provisions, or any subsequently enacted statutes, ordinances, regulations, or orders, which refer to or relate to “Hazardous Substances” as used in this Agreement (“Environmental Laws”); provided, however, that specifically included under this Agreement as asbestos, PCBs, mercury, sulphur, dioxide, vinyl chloride, urea formaldehyde, natural gas, or synthetic gas useable for fuel (or mixtures of natural gas and such synthetics gas), all petroleum products or byproducts, hydrocarbons, and any components or derivatives thereof, any per- and polyfluoroalkyl substances known as “PFAS.”
The term “hazardous materials” shall not include: (i) construction materials, gardening materials, household products, office supply products, or janitorial supply products customarily used in the construction, maintenance, or management of commercial properties, or typically used in office activities, or (ii) certain substances which may contain chemicals listed by the State of California pursuant to Health and Safety Code section 25249.8, et. seq., which substances are commonly used by a significant p ortion of the population living within the region of the Properties, including, but not limited to, alcoholic beverages, aspirin, tobacco products, nutrasweet, and saccharine.
The term “hazardous materials laws” means all federal, state, and local laws, o rdinances, regulations, orders, and directives pertaining to Hazardous Materials in, on, or under the Properties or any portion thereof.
8.1. Compliance with Laws. The Buyer hereby covenants and agrees to comply with all Hazardous Materials laws applicable to it.
8.2. Indemnity. Without limiting the generality of the indemnification set forth elsewhere in this Agreement, the Buyer hereby agrees to indemnify, protect , and hold harmless the Seller and its City Council, officers, employees, legal counsel, representatives, and agents from and against any and all claims, losses, damages, liabilities, fines, penalties, charges, administrative and judicial proceedings and orders, judgments, remedial action requirements, enforcement actions of any kind, and all costs and expenses incurred in connection therewith (including, but not limited to, reasonable attorney fees and expenses), arising directly or indirectly, in whole or in part, out of the failure of Buyer or any other person or entity to comply with the Hazardous Materials laws. The foregoing indemnity shall further apply to any residual contamination on or under the Properties, including but not limited to the presence of lead-based
7 paint or asbestos, or affecting any natural resources, and to any contamination of any property or natural resources arising in connection with the generation, use, handling, treatment, storage, transport or disposal or any such Hazardous Materials, and irrespective of whether any of such activities were or will be undertaken in accordance with Hazardous Materials laws. The provisions of this subsection shall survive expiration or termination of this Agreement and shall remain in full force and effect.
8.3. No Limitation. The Buyer hereby acknowledges and agrees that the Buyer’s duties, obligations, and liabilities under this Agreement, including, without limitation, under sections 8.1 and 8.2 above, are in no way limited or otherwise affect ed by any information the Seller may have concerning the Properties and/or the presence within the Properties of any Hazardous Materials, whether the Seller obtained such information from the Buyer or from its own investigations.
9. Provision Not Merged with Deeds. Unless otherwise specifically set forth herein, none of the provisions of this Agreement are intended to or shall be merged by any grant deed transferring title to any real property which is the subject of this Agreement from Seller to Buyer or any successor in interest, and any such grant deed shall not be deemed to affect or to impair the provisions and the covenants of this Agreement.
10. Brokers. Seller and Buyer each represent to the other that no brokerage commission, finder’s fee or other compensation of any kind is due or owing to any person or entity in connection with this Agreement. Each party agrees to and does hereby indemnify and hold the other free and harmless from any against any and al l costs, liabilities or causes of action or proceedings which may be instituted by any broker, agent or finder, licensed or otherwise, claiming through, under or by reason of the conduct of the indemnifying party in connection with this Agreement.
11. Waiver, Consent, and Remedies. Each provision of this Agreement to be performed by Buyer and Seller shall be deemed both a covenant and a condition and shall be a material consideration for Seller’s and Buyer’s performance hereunder, as appropriate, and any brea ch thereof by Buyer or Seller shall be deemed a material default hereunder by such breaching party.
Either party may specifically and expressly waive in writing any portion of this Agreement or any breach thereof, but no such waiver shall constitute a fur ther or continuing waiver of a preceding or succeeding breach of the same or any other provision. A waiving party may at any time thereafter require further compliance by the other party with any breach or provision so waived. The consent by one party to any act by the other for which such consent was required shall not be deemed to imply consent or waiver of the necessity of obtaining such consent for the same or any similar acts in the future. No waiver or consent shall be implied from silence or any failure of a party to act, except as otherwise specified in this Agreement. All rights, remedies, undertakings, obligations, options, covenants, conditions and agreements contained in this Agreement shall be cumulative and no one of them shall be exclusive of any other.
8 12. Attorney’s Fees. In the event any declaratory or other legal or equitable action is instituted between Seller, Buyer and/or Escrow Holder in connection with this Agreement then, as between Buyer and Seller, the prevailing party shall be entitled to recover from the losing party all of its costs and expenses, including court costs, reasonable attorneys’ fees, expert witness fees, and all fees, costs and expenses incurred on any appeal or in collection of any judgment.
13. Notices. Any notice , request, demand, consent, approval or other communication required or permitted hereunder or by law shall be validly given or made only if in writing and delivered in person to an officer or duly authorized representative of the other party, or deposited in the United States mail, duly certified or registered (return receipt requested), postage prepaid, or delivered through another reasonably acceptable method, and addressed to the party for whom intended, as follows:
If to Buyer:
With a Copy to:
If to Seller: City of Salinas
Attn: Assistant City Manager
200 Lincoln Avenue
Salinas, California 93901
With a Copy to: City of Salinas
Attn: City Attorney
200 Lincoln Avenue
Salinas, California 93901
14. Gender and Number. In this Agr eement (unless the context requires otherwise), the masculine, feminine and neuter genders and the singular and the plural shall be deemed to include one another, as appropriate.
15. Entire Agreement. This Agreement and its attachments constitute the entire agreement between the parties hereto pertaining to the subject matter hereof, and the final, complete and exclusive expression of the terms and conditions thereof. All prior agreements, representations, negotiations and understandin g of the parties hereto, oral or written, express or implied, are hereby superseded and merged herein.
16. Captions. The captions used herein are for convenience only and are not a part of this Agreement and do not in any way limit or amplify the terms and provisions hereof.
9 17. Governing Law. This Agreement and the exhibits attached hereto have been negotiated and executed in the State of California and shall be governed by and construed under the laws of the State of California. Jurisdiction of any disputes hereunder shall be had in Monterey County or in the appropriate federal court with jurisdiction over the matter.
18. Counterparts. This Agreement may be executed in counterparts, each of which when executed shall, regardless of the date of its execution and delivery, be deemed an original, and all counterparts together shall constitute one and the same instrument.
19. Conflict of Interest.
19.1. Except for approved eligible administrative costs, no person described in section 19.2, below , who exercised or has exercised any functions or responsibilities with respect to this Agreement or who is in a position to participate in a decision -making process or gain inside information, including confidential closed session or privileged informatio n, with regard to such Agreement, may obtain a personal or financial interest or benefit, or have any interest in any contract, subcontract, or agreement, or the proceeds thereunder, either for themselves or those with whom they have family or business tie s, during, or at any time after, such person’s tenure.
19.2. The conflict of interest provisions of Section 19.1, above, apply to any person who is an employee, agent, consultant, officer, or any immediate family member of such person, or any elected or appointed official of the Seller.
19.3. In accordance with the Political Reform Act, California Government Code Section 87100 et seq., no person who is a director, officer, partner, trustee or employee or consultant of the Seller or Buyer, or immediate family member of any of the preceding, shall make or participate in a decision, if it is reasonably foreseeable that the decision will have a material effect on any source of income, investment or interest in real property of that person. Interpretation of this Section shall be governed by the definitions and provisions used in the Political Reform Act, California Government Code Section 87100 et seq., its implementing regulations, manual, and codes.
19.4. In accordance with the Levine Act, Government Code section 84308, et. seq., no person who is a director, officer, partner, trustee, or employee or consultant of the Buyer has contributed over five hundred dollars ($500), as that amount may be amended, over the past twelve (12) months, and any such person will not contribute for twelve (12) months following a final decision on this Agreement, to any public official of the Seller.
10 20. Invalidity of Provision. If any provision of this Agreement as applied to any party or to any circumstance shall be adjudged by a court of compete nt jurisdiction to be void or unenforceable for any reason, the same shall in no way affect (to the maximum extent permissible by law) any other provision of this Agreement, the application of any such provision under circumstances different from those adj udicated by the court, or the validity or enforceability of this Agreement as a whole.
21. Amendments. No addition to or modification of any provision contained in this Agreement shall be effective unless fully set forth in writing by Buyer and Seller.
22. Time of Essence. Time is of the essence of each provision of this Agreement.
23. Survival. All agreements, representations and warranties contained herein shall survive the Closing.
24. Binding Upon Successors. The terms and conditions, covenants, and agreements set forth herein shall apply to and bind the heirs, executors, administrators, assigns and successors of the parties hereof.
25. Parties no Co-Venturers. Nothing in this Agreement is intended to or does establish the parties as partners, co-venturers or principal and agent with one another.
26. Action by the Seller. Except as may be otherwise specifically provided in this Agreement, whenever any approval, notice, direction, finding, consent, request, waiver or other action by the Seller is required or permitted under this Agreement, such action may be given, made or taken by the City Manager or by any person who shall have been designated in writing to the Buyer by the City Manager without further approval by the City Council. Any such action shall be in writing.
27. Lease Agreement. The Lease Agreement entered into by and between Seller and Buyer dated February 2, 2021, shall be terminated and no longer of any force or effect as of the Close of Escrow, defined herein.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth above.
SELLER
City of Salinas
__________________________
Dennis Donohue, Mayor
11 APPROVED AS TO FORM:
___________________________
Christopher A. Callihan, City Attorney
BUYER
Monterey County Office of Education
____________________________
12 EXHIBIT A
Legal Description
To Be Included
Real property in the City of Salinas, County of Monterey, State of California, described as follows:
…
APN: 002-213-028-000
Real property in the City of Salinas, County of Monterey, State of California, described as follows:
…
APN: 002-213-017-000
13 EXHIBIT B
RECORDING REQUESTED BY AND WHEN
RECORDED MAIL TO:
City of Salinas
200 Lincoln Avenue
Salinas, California 93901
Attn: Assistant City Manager
(ABOVE SPACE FOR RECORDER’S USE ONLY)
EXEMPT FROM RECORDER’S FEES pursuant to Government Code section 27383 This instrument is exempt from payment of Documentary Transfer Tax pursuant to Section 11922 of the Revenue and Taxation Code, as amended.
GRANT DEED
For valuable consideration, the receipt and adequacy of which are hereby acknowledged, City of Salinas, a California charter city and municipal corporation (“Grantor”) does hereby grant and convey to Monterey County Office of Education, a local education agency, (“Grantee”) all of the right, title and interest of Grantor in and to that certain real property situated in the City of Salinas, County of Monterey, State of California, more particularly described on Attachment No. 1, attached hereto and incorporated herein by this reference.
Dated this ____ day of ______________, 2025
CITY OF SALINAS,
A California charter city and municipal corporation
____________________________
Dennis Donohue, Mayor
14 City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-406, Version: 1
An Ordinance Amending Articles III and IIIA of Chapter 12 (Finance) of the Salinas Municipal Code Regarding Purchasing
Adopt an ordinance updating Article III and Article IIIA of Chapter 12 of the Salinas Municipal Code related to purchasing policies and procedures.
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CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: SEPTEMBER 23, 2025
DEPARTMENT: FINANCE
FROM: SELINA ANDREWS, FINANCE DIRECTOR
CHRISTOPHER A. CALLAHAN, CITY ATTORNEY
TITLE: AN ORDINANCE AMENDING ARTICLES III AND IIIA OF
CHAPTER 12 (FINANCE) OF THE SALINAS MUNICIPAL CODE
REGARDING PURCHASING
RECOMMENDED MOTION:
Consider adopting an ordinance updating Article III and Article IIIA of Chapter 12 of the Salinas Municipal Code related to purchasing policies and procedures.
EXECUTIVE SUMMARY:
The proposed amendments to Article III (Purchasing Ordinance) and Article IIIA provide revisions pertaining to the City’s procurement methods. These revisions are intended to clean -up certain outdated language to align with the revised purchasing policy, which includes updates intended to bring the City into compliance with evolving procurement regulations.
BACKGROUND:
On August 16, 2016, City Council adopted an ordinance amending Sections 12-21, 12-22, 12-27, and 12 -28.020 of the City’s Municipal Code t o (1) add a public works formal bid purchasing threshold automatically adjusted by the consumer cost index on an annual basis, (2) include a definition for public works purchases, (3) adopt a best interest exception/alternative; and (4) adjust the general purpose purchasing threshold.
On November 12, 2024, staff presented the proposed Ordinance revisions regarding purchasing authority for general purchases and public works purchases to the Finance Committee and the Committee provided direction to bring staff’s recommended changes to the full City Council.
On November 19, 202 4, City Council adopted an ordinance revising the City Manager’s purchasing authority.
Concurrent with the last purchasing ordinance update, staff also revised the purchasing policy to bring the City into compliance with evolving regulations while incorporating best practices without compromising important values underlying City Council decision-making processes, such as transparency and competitiveness for contracts. The proposed amendments to Article III and Page | 2
Article IIIA provide for non -substantive revisions intended to ensure the provisions of the Municipal Code are consistent with the up dated purchasing policy and current practices as they relate to purchasing practices and policies. The proposed revisions are reflected in the attached ordinance in underline/strikethrough format.
The City Council may adopt this ordinance at the September 23, 2025, meeting upon its unanimous consent; otherwise, the ordinance may be introduced on September 23, 2025, and will return for adoption on October 14, 2025. (Salinas Charter Section 11.3) The ordinance would become effective thirty (30) days after its adoption.
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 pur suant 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:
Cleaning up the Purchasing Ordinance meets the City Council 2025 Strategic Goal of City Services ensuring fiscal responsibility and finance management.
DEPARTMENTAL COORDINATION:
This staff report was coordinated with the Finance Department, City Attorney’s Office, and the City Manager’s Office.
FISCAL AND SUSTAINABILITY IMPACT:
There is no direct fiscal impact directly associated with approving Salinas Municipal Code Chapter 12 (Purchasing) clean-up.
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
Page | 3
ATTACHMENTS:
Ordinance
1 ORDINANCE NO. _______ (N.C.S.)
AN ORDINANCE AMENDING ARTICLE III AND ARTICLE III-A OF CHAPTER 12 OF
THE SALINAS MUNICIPAL CODE RELATED TO PURCHASING POLICIES AND
PROCEDURES
City Attorney Impartial Analysis
This ordinance renumbers Article III and makes non-substantive updates to Article III and Article III-A of Chapter 12 of the Salinas Municipal Code to align Article III with current purchasing policies and practices.
WHEREAS, establishing local policies and proc edures governing the purchase or services, supplies, materials, and equipment for municipal purposes, and that do not conflict with applicable state or federal law, is within the police power of the City of Salinas; and
WHEREAS, it is desirable and appropriate to ha ve adopted purchasing pol icies and procedures that provide for efficiency consistency, accountability, and responsibility, and for those policies and procedures to be reviewed and updated as needed;
NOW, THEREFORE BE IT ORDAINED BY THE COUNCIL OF SALINAS AS FOLLOWS:
SECTION 1. Article III of Chapter 12 of the Salinas Municipal Code is hereby renumbered and amended as follows:
Article III. Purchasing
Sec. 12-1803.01. Title and Purpose.
This article shall be known as the City of Salinas purchasing ordinance. Except as otherwise specifically provided in this Code, It it shall govern all purchasing activity of the City, except real property acquisition and disposition, public works construction projects, and as may otherwise be specifically provided in this Code.
Sec. 12-03.02. Definitions.
(a) “Professional Services” are services which re quire the exercise of professional discretion and independent judgment, based on advanced or specialized knowledge, expertise, or training gained by formal studies or experience.
(b) “Public Works Purchases” means, for purposes of this article, purchases for public works projects. “Public Works Projects” means constr uction, alteration, demolition, or repair work done under contract and paid for in whole or in part out of public funds. Public Works Project does not include maintenance work, which includes routine, recurring, and usual work for the preservation or protection of any publicly owned or operated facility for its intended purpose.
Formatted: Indent: Left: 0.5", No bullets or numbering Formatted: List Paragraph, Numbered + Level: 1 +
Numbering Style: a, b, c, … + Start at: 1 + Alignment:
Left + Aligned at: 0.25" + Indent at: 0.5"
Formatted: Font: (Default) Times New Roman
2 Sec. 12-1903.03. Purchasing Agent—Appointment.
The Purchasing Agent shall be appointed by the City Manager.
Sec. 12-2003.04. Same—Powers and Duties.
Subject to specific limitations stated in this ar ticle, and except as may otherwise be specifically provided in this article, the Purchasing Agent shall have the following powers and duties:
(a) He or she shall be theTo act as the sole agent for the City in contracting for supplies, materials, equipment, and contractual services , except with respect to the procurement of legal services in which case the Purchasing Agent shall be the City Attorney. This authority may be delegated in writing where necessary with the approval of the City Manager.
(b) He or she shallTo prepare an maintain a current purchasing manual to provide for the implementation of this article and for the direction and information of users and the public.
(c) He or she shallTo prepare or supervise preparation of written specifications and advertising.
(d) He or she shallTo advertise and award bids as authorized.
(e) He or she shallTo execute purchase orders and changes thereto.
(f) He or she shallTo inspect or supervise the inspection of delivered items to ensure adherence to specifications and standards.
(g) He or she shall maintain and control a central stores inventory on a revolving fund arrangement.
(h)(g) He or she shallTo purchase only when funds are available.
(h) He or she shallTo edit and issue specifications for all bids or quotations.
(i) To prescribe and maintain such forms as are reasonably necessary to fulfill the duties described in this section.
Sec. 12-2103.05. General Purchases or Public Works Pu rchases in excess of two hundred-fifty thousand dollars.
(a) General Purchases. Except as otherwise direct ed by the City Council or pursuant to subsection (b) of this section, whenever th e amount to be expende d for any purchase in excess of two hundred-fifty thousand dollars the Purchasing Agent shall advertise for sealed bids and the contract of purchase shall be awarded to the lowest responsible bidder.
Formatted: Normal, No bullets or numbering
3 (b) Public Works Purchases. For public works purchases, except as otherwise directed by the City Council, whenever the amount to be expe nded for any purchase is in excess of two hundred-fifty thousand dollars, the Purchasing Agent shall advertise for sealed bids and the contract of purchase shall be awarded to the lowest responsible bidder. The two hundred- fifty thousand dollar limit set forth above shall automatically adjust annually to reflect the construction cost index percentage change as published by the Engineering News Record.
In no event shall the adjusted limit be less than one two hundred-fifty thousand dollars.
(c) Bid Solicitation. Bid solicitation requests made pursuant to subsection (a) or (b) shall be published in a local newspaper of general circulation describing the goods and services required, stating the date time, and place a ssigned for the public opening of the bids. No bids will be received at any time subsequent to the time indicated in the announcement.
The Purchasing Agent shall submit a tabulation of bids to the City Council together with recommendations for award to the lowest responsible bidder.
(d) Rejection of Bids. The council, City Manage r, and/or the Purchasing Agent shall have authority to reject any and all bids.
Sec. 12-2203.06. General Purchases or Public Works Purchases for Less Than Two Hundred-Fifty Thousand Dollars.
All purchase orders or contracts for services, materials, equipment, or supplies involving general purchases or public works purchase of two hundred-fifty thousand dollars or less, may be approved by the City Manager. The two hundred-fifty thousand dollars limit set forth in this section shall automatically adjust annually, with respect to general purchases to reflect the change in the April Consumer Price Index for Urban Consumers (C PI-U) for the San Francisco-Oakland-Hayward areas, and with respect to public works purchases to reflect the construct cost index percentage change as published by the Engineering News Record. In no event shall the adjusted limit be less than two hundred-fifty thousand dollars. These contracts shall be let in the open market in the manner calculated to ensure the best interests of the public, after solicitation for quotations by mail, telephone, or competitive negotiation by the Purchasing Agent. In the solicitation for competitive quotations, the Purchasing Agent shall contact as many local sources of supply as reasonable for the solicitation.
Sec. 12-2303.07. Determination of Lowest Responsible Bid.
In determining the lowest responsible bid, criteria will include, but not be limited to, the following:
(a) The extent to which the offer meets the requirements and specifications of the City;
(b) Long-term and short-term costs to the City, including maintenance;
(c) Impact on operational efficiency, which includes delivery requirements;
(d) Reliability of the suppliers to provide and warranty the items procured; and
4 (e) Financial stability of the bidder.
Sec. 12-2403.08. Emergency Purchases.
In the case of emergency affecting the public’s he alth and safety, the Purchasing Agent and City Manager are authorized to purchase supplies, materials, equipment, or contractual services required for such emergency, without regard to amount limitation or prior approval of the City Council.
Sec. 12-2503.09. Exceptions.
Exceptions to the competitive bidding requirements are goods or professional services pertaining to, but not limited to, physicians, attorneys, ap praisers, architects, engineers, auctioneers, consultants, arbitrators, designers, and auditors, or goods or services pertaining to, but not limited to, insurance, copyrighted materials, sole source items, gas, electricity water, telephones, and cooperative purchasing with other governmental agenci es, such as school districts, local, county, state, or federal agencies, when it is to the advantage of the City to purchase from such other governmental agencies.
Sec. 12-2603.10. Purchases by Purchasing Agent and City Manager Only.
All purchases whatsoever shall be made only by the Purchasing Agent or, where specifically provided for in this article, by the City Manager, and no such purchase for the use of the City or any department thereof shall be valid or bindi ng upon the City unless made by the Purchasing Agent or where authorized by the City Manager.
Sec. 12-2703.11. Exceptions.
Whether For those general purchases or public works purchases subject to approval by the City Council, except where competitive bidding is required by federal law or by reason of the source of funding for the project, the goods, materials, equipment, supplies, and/or services may be procured by negotiated contract and without exclusive low-bid based competition when the City Council determines that, due to the nature of the purchase, low-bid based competition is not likely to serve the best interests of the City, yield the best value to the City, or result in the lower price.
Sec. 12-27.1. Reserved.
SECTION 2. Section 12-28.020 of Chapter 12 of the Salinas Municipal Code is hereby amended as follows:
(a) "Bid" or "bids" shall include any competitive bid submitted at the invitation of the city.mean a formal written offer, in response to a solicitation, to furnish goods including, but not limited to, supplies, equipment, vehicl es, and/or services in conformity with the specifications, delivery terms, and conditions required at a guaranteed maximum cost.
5 (b) "Bidder" shall mean any person, including any corporation or other business entity, who submits a response to a competitive invitation from the city.
(c) "City" shall mean the city of Salinas acting through the city council, the city manager, the purchasing agent or such other person who is authorized under the city Code or otherwise duly designated to procure and execute contracts on behalf of the city.
(d) "Local business enterprise" means a business enterprise, including but not limited to, a sole proprietorship, partnership or corpora tion, which has a legitimate business presence in the city of Salinas. Evidence of a legitimate business presence in the city of Salinas shall include:
(1) Having a current city of Salinas business license;
(2) Having a business office within the city of Salinas and employing at least one full-time employee within the city of Salinas;
(3) Being current on all city of Salinas taxes, fees, assessments, and fines; (4) Not subject to enforcement action by the city or in litigation with the city; (5) Began doing business within the city of Salinas at least one year prior to the city's inviting bids or quotations for the respective purchases or is a newly established business enterprise which is owned by an individual(s) formerly employed by a local business enterprise, as defined in this subsection, for at least two years immediately prior to the issuance of either a request for competitive bids or request for qualifications from the city; and
(6) Submitting a declaration of local business enterprise on a form provided by the city.
(e) "Public work(s) purchases" shall include any construction, reconstruction, structure or infrastructure improvement , for purposes of this article, mean purchases for public works projects. “Public Works Projects” means constr uction, alteration, demolition, or repair work done under contract and paid for in whole or in part out of public funds. Public Works Project does not include maintenance work, which includes routine, recurring, and usual work for the preservation or protection of any publicly owned or operated facility for its intended purpose.building, alteration, demolition, excavation, refuse hauling, installation, maintenance, or repair of any public work, including the supplying of materials, supplies, and labor.
(f) "“Purchase"” shall mean the acquisition of those supplies, materials, equipment, or service bought in a single transaction from a single vendor.
(g) "“Responsible"” shall, for purposes of this article, mean a bidder's quality, fitness, and capacity to perform or otherwise meet the particular requirements of the proposed work or service.
(h) "Responsive" shall mean a bidder's compliance with the solicitation instructions.
Formatted: Left
6 SECTION 2. All ordinances and parts of ordinances an d all resolutions and parts of resolutions in conflict herewith are hereby repealed as of the effective date of this ordinance.
SECTION 3. Publication. The City Clerk shall cause a summary of this ordinance to be published once in a newspaper published and circulated in Sa linas within fifteen (15) days after adoption. (Salinas Charter Section 11.9)
SECTION 4. CEQA Compliance. The City Council’s adoption of this ordinance is not a project subject to environmental review under the California Environmental Quality Act (CEQA Guidelines Section 15061(b)(3) because it would not have a significant effect on the environment.
Additionally, the City Council’s adoption of this ordinance is exempt because it does not meet the definition of a “project” under CEQA, pursuant to CEQA Guidelines sections 15060(c)(1) and 15378(a), because it has no potential to result in a direct or reasonably foreseeable physical change in the environment.
SECTION 5. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance.
The Salinas City Council hereby declares that it would have passed this ordinance and each and every section, subsection, clause, and phrase thereof not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.
SECTION 6. Effective Date. This ordinance will take effect thirty (30) days from and after its adoption.
PASSED AND ADOPTED this _____ day of ____________________, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
_________________________________
Dennis Donohue, Mayor
APPROVED AS TO FORM:
___________________________________
Christopher A. Callihan, City Attorney
ATTEST:
7 ___________________________________
Patricia M. Barajas, City Clerk
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-407, Version: 1
Amendment to Memorandum of Understanding for Association of Management Personnel of Salinas Approve a Resolution amending the Association of Management Personnel of Salinas (AMPS) Memorandum of Understanding (MOU) to extend the current City contribution for health premiums through December 31, 2026; and authorizing an increase in the corresponding health benefit appropriations within the respective funds in an amount up to $43,000.
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CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: SEPTEMBER 23, 2025
DEPARTMENT: HUMAN RESOURCES
FROM: MARINA HORTA-GALLEGOS, HUMAN RESOURCES DIRECTOR TITLE: AMENDMENT TO MEMORANDUM OF UNDERSTANDING FOR
ASSOCIATION OF MANAGEMENT PERSONNEL OF SALINAS
RECOMMENDED MOTION:
It is recommended that the City Council approve a resolution:
1. Amending the Association of Management Personnel of Salinas (AMPS) Memorandum of Understanding (MOU) to extend the current City contribution for health premiums through December 31, 2026; and
2. Authorizing an increase in the corresponding health benefit appropriations within the respective funds in an amount up to $43,000.
EXECUTIVE SUMMARY:
The proposed amendment to the AMPS MOU is to extend the current City contribution for health premiums through December 31, 2026.
BACKGROUND:
The City offers several different health benefit plans to employees, each with different premium amounts. The Cit y currently contributes toward the monthly health benefits premiums an amount equal to 95% of the premium for the plan selected, up to a maximum of 90% of the cost of the premium for the PERS Platinum Health Plan (one of the plans offered by PERS). In November 2023, the City Council approved a resolution approving the AMPS MOU which included a provision for a City’s health premium contribution in an amount equal to 95% of the premium for the plan selected and decreased of up to 90% of the California Public Employees’ Retirement System (PERS) Platinum plan premium effective January 1, 2025; a contribution of 95% of the premium for the plan selected and a further decrease of up to 85% of the PERS Platinum plan premium, effective January 1, 2026.
Staff recommends maintaining the City’s current 2025 premium contribution of 95% of the plan selected, up to 90% of the PERS Platinum plan premium through December 31, 2026 to maintain parity with other employee groups and support recruitment and retention.
Page | 2
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.
STRATEGIC PLAN INITIATIVE:
The proposed action supports the City Council 2025 Strategic Goal of City Services City Services, ensuring fiscal responsibility and finance management.
DEPARTMENTAL COORDINATION:
The Human Resources Department collaborated with the Administration and Finance departments in this effort.
FISCAL AND SUSTAINABILITY IMPACT:
The projected cumulative total for the proposed action represents a cost of approximately $43,000 in the current fiscal year. While some or most of the additional expenditures may be absorbed through salary savings, staff is requesting authority to increase the salary & benefits appropriations in the event that there is no savings within a department.
Fund
Appropriation
Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 25-
26Operating
Budget Page
Last Budget
Action (Date,
Resolution)
Various 61.1100-61.9950 Salaries &
Benefits
$0 Up to $43,000 N/A N/A
ATTACHMENTS:
Resolution
CalPERS 2026 Health Premiums
Page | 3
RESOLUTION NO. _________ (N.C.S.)
A RESOLUTION OF THE SALINAS CITY COUNCIL APPOVING AN AMENDMENT TO
THE MEMORANDUM OF UNDERSTANDING FOR THE ASSOCIATION OF
MANAGEMENT PERSONNEL OF SALINAS RELATED TO CITY CONTRIBUTION TO
HEALTH PREMIUMS
BE IT RESOLVED BY THE CITY COUNCIL OF SALINAS that Section 6 – Health, Dental, and Vision Plan of the Association of Management Personnel of Salinas Memorandum of Understanding is amended to reflect a City premium contribution of 95% of the premium for the plan selected up to 90% of the PERS Platinum Plan through December 31, 2026.
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF SALINAS that an increase in the corresponding health benefit appropriations within the respective funds in an amount up to $43,000 is hereby approved.
PASSED AND APPROVED this 23rd day of September 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN: APPROVED:
____________________________________
Dennis Donohue, Mayor
ATTEST:
______________________________
Patricia M. Barajas, City Clerk
Attachment 1, Page 3 of 8
July Board of Administration Offsite
2026 Regional Premiums Per Subscriber Per Month (PSPM)
Public Agency and School Members
Region 1
2025 2026
Single 2-Party Family Single 2-Party Family
HMO
Anthem Blue Cross Select HMO $1,256.65 $2,513.30 $3,267.29 $1,336.29 $2,672.58 $3,474.35 6.34% Anthem Blue Cross Traditional HMO $1,500.40 $3,000.80 $3,901.04 $1,612.08 $3,224.16 $4,191.41 7.44% Blue Shield Access+ HMO $1,170.17 $2, 340.34 $3,042.44 $1,301.95 $2,603.90 $3,385.07 11.26% Blue Shield Access+ EPO $1,170.17 $2,340.34 $3,042.44 $1,301.95 $2,603.90 $3,385.07 11.26% Blue Shield Trio HMO $1,134.79 $2,269. 58 $2,950.45 $1,166.58 $2,333.16 $3,033.11 2.80% Kaiser Permanente $1,112.90 $2,225.80 $2,893.54 $1,168.86 $2,337.72 $3,039.04 5.03% Kaiser Permanente Out of State $1,422.26 $2, 844.52 $3,697.88 $1,398.96 $2,797.92 $3,637.30 (1.64%) UnitedHealthcare SignatureValue Alliance $1,184.58 $2,369.16 $3,079.91 $1,290.06 $2,580.12 $3,354.16 8.90% UnitedHealthcare SignatureValue Harmony $1,005.02 $2,010.04 $2,613.05 $1,133.09 $2,266.18 $2,946.03 12.74% Western Health Advantage HMO $914.27 $1,828.54 $2,377.10 $969.58 $1,939.16 $2,520.91 6.05% PPO
PERS Gold $1,013.70 $2,027.40 $2,635. 62 $1,120.58 $2,241.16 $2,913.51 10.54% PERS Platinum $1,476.10 $2,952.20 $3, 837.86 $1,670.14 $3,340.28 $4,342.36 13.15% PERS Platinum Out of State $1,244.55 $2,489.10 $3,235.83 $1,410.29 $2,820.58 $3,666.75 13.32% 2025 2026
Single 2-Party Family Single 2-Party Family
Medicare Advantage Plans
Anthem Medicare Preferred PPO $487.56 $975.12 $1,462.68 $571.70 $1,143.40 $1,715.10 17.26% Blue Shield Medicare PPO (Nationwide) $448.28 $896.56 $1,344.84 $539.43 $1,078.86 $1,618.29 20.33% Kaiser Permanente Senior Advantage $343.08 $686.16 $1,029.24 $356.83 $713.66 $1,070.49 4.01% Kaiser Permanente Senior Advantage Out of State $336.72 $673.44 $1,010.16 $350.16 $700.32 $1,050.48 3.99% Kaiser Permanente Senior Advantage Summit $408.31 $816.62 $1,224.93 $426.31 $852.62 $1,278.93 4.41% Kaiser Permanente Senior Advantage Summit Out of State $401.97 $803.94 $1,205.91 $419.67 $839.34 $1,259.01 4.40% Sharp Direct Advantage HMO $272.44 $544.88 $817.32 $291.38 $582.76 $874.14 6.95% UnitedHealthcare Group Medicare Advantage PPO (Nationwide) $442.25 $884.50 $1,326.75 $481.29 $962.58 $1,443.87 8.83% Medicare Supplement Plans
PERS Gold Medicare Supplement $546.13 $1,092.26 $1,638.39 $597.57 $1,195.14 $1,792.71 9.42% PERS Platinum Medicare Supplement (Nationwide) $584.70 $1,169.40 $1,754.10 $665.50 $1,331.00 $1,996.50 13.82% Medicare Plans (M) Percent Change
Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Glenn, Humboldt, Lake, Lassen, Marin, Mariposa, Mendocino, Merced, Modoc, Mono, Monterey, Napa, Nevada, Placer, Plumas, Sacramento, San Benito, San Francisco, San Joaquin, San Mateo, Santa Clara, Santa Cruz, Shasta, Sierra, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Tuolumne, Yolo and Yuba
Basic Plans (B) Percent Change
Attachment 1, Page 4 of 8
July Board of Administration Offsite
2026 Regional Premiums Per Subscriber Per Month (PSPM)
Public Agency and School Members
Region 1
2026
Combination Plans
Subscriber in M &
1 Dependent in B
Subscriber in M &
2+ Dependents in B
Subscriber in M,
1 Dependent in B &
1 Dependent in M
Subscriber in B &
1 Dependent in M
Subscriber in B &
2+ Dependents in M
Subscriber in B,
1 Dependent in B &
1 Dependent in M
Basic HMO and Medicare Advantage
Anthem Blue Cross Select and Medicare Supplement $1,907.99 $2,709.76 $1,945.17 $1,907.99 $2,479.69 $2,709.76 Anthem Blue Cross Traditional and Medicare Supplement $2,183.78 $3,151.03 $2,110.65 $2,183.78 $2,755.48 $3,151.03 Blue Shield Access+ HMO and Medicare $1,841.38 $2,622.55 $1,860.03 $1,841.38 $2,380.81 $2,622.55 Blue Shield Access+ EPO and Medicare $1,841.38 $2,622.55 $1,860.03 $1,841.38 $2,380.81 $2,622.55 Blue Shield Trio and Medicare $1,706.01 $2,405.96 $1,778.81 $1,706.01 $2,245.44 $2,405.96 Kaiser Permanente and Senior Advantage $1,525.69 $2,227.01 $1,414.98 $1,525.69 $1,882.52 $2,227.01 Kaiser Permanente and Senior Advantage Out of State $1,749.12 $2,588.50 $1,539.70 $1,749.12 $2,099.28 $2,588.50 Kaiser Permanente and Senior Advantage Summit $1,595.17 $2,296.49 $1,553.94 $1,595.17 $2,021.48 $2,296.49 Kaiser Permanente and Senior Advantage Summit Out of State $1,818.63 $2,658.01 $1,678.72 $1,818.63 $2,238.30 $2,658.01 UnitedHealthcare Alliance and Medicare Advantage $1,771.35 $2,545.39 $1,736.62 $1,771.35 $2,252.64 $2,545.39 UnitedHealthcare Harmony and Medicare Advantage $1,614.38 $2,294.23 $1,642.43 $1,614.38 $2,095.67 $2,294.23 Basic PPO and Medicare Supplement
PERS Gold and Medicare Supplement $1,718.15 $2,390.50 $1,867.49 $1,718.15 $2,315.72 $2,390.50 PERS Platinum and Medicare Supplement $2,335.64 $3,337.72 $2,333.08 $2,335.64 $3,001.14 $3,337.72 PERS Platinum and Medicare Supplement Out of State $2,075.79 $2,921.96 $2,177.17 $2,075.79 $2,741.29 $2,921.96 Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Glenn, Humboldt, Lake, Lassen, Marin, Mariposa, Mendocino, Merced, Modoc, Mono, Monterey, Napa, Nevada, Placer, Plumas, Sacramento, San Benito, San Francisco, San Joaquin, San Mateo, Santa Clara, Santa Cruz, Shasta, Sierra, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Tuolumne, Yolo and Yuba