Agenda Packet — Salinas City Council, September 23, 2025 (part 1 of 4)

Tuesday, September 23, 2025
4:00 PM
City of Salinas
200 Lincoln Ave., Salinas, CA 93901
www.cityofsalinas.org

SALINAS ROTUNDA
City Council
Mayor Dennis Donohue
Councilmembers:

Jose Luis Barajas, District 1 - Tony Barrera, District 2 Margaret D'Arrigo, District 3 - Gloria De La Rosa, District 4 Andrew Sandoval, District 5 - Aurelio Salazar, District 6 Rene Mendez, City Manager
Christopher A. Callihan, City Attorney
City Clerk’s Office: (831) 758-7381
Meeting Agenda - Final

September 23, 2025City Council Meeting Agenda - Final

TELECONFERENCE NOTICE
Pursuant to California Government Code Section §54953, this meeting will include teleconference participation by Councilmember Tony Barrera from Avenida Olas Altas 79 Sur Mazatlán, Sinaloa, Mexico. The teleconference location shall be accessible to the public in accordance with the law.

ZOOM WEBINAR PARTICIPATION
JOIN THE ZOOM WEBINAR TO PARTICIPATE LIVE AT:
https://cityofsalinas.zoom.us/j/87445314816
To participate telephonically, call any number below:
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If prompted to enter a participant ID, press #.

PLEDGE OF ALLEGIANCE

ROLL CALL

CLOSED SESSION
Receive public communications from the audience on Closed session items.

The City Council will recess to closed session pursuant to:

ID#25-410
a. Existing Litigation - California Government Code section 54956.9(a), conference with legal counsel regarding, Joshua Hostetter vs. City of Salinas, Workers’ Compensation Appeals Board Case Number(s):

Unassigned.
b.

Labor Negotiations - California Government Code Section 54957.6 with its designated labor representatives Rene Mendez, City Manager; Lisa Murphy, Assistant City Manager; Christopher A. Callihan, City Attorney; Katherine Hogan, Assistant City Attorney; Selina Andrews, Finance Director; Marina Horta-Gallegos, Human Resources Director; Sylvia Enriquez, Human Resources Manager; and Che Johnson, Liebert Cassidy Whitmore, regarding labor relations with Service Employees International Union (SEIU), SEIU Supervisors, Salinas Municipal Employees Association/SEIU, Association of Management Personnel, Police Officers Association, Police Management Association, International Association of Firefighters, Fire Supervisors Association, Confidential Non-Management Employees, Confidential Management

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September 23, 2025City Council Meeting Agenda - Final
Employees, and Department Directors.

THE CITY COUNCIL WILL RECONVENE IN THE ROTUNDA AT 5:00 P.M.

PROCLAMATIONS
Stormwater Awareness Week, September 22-26, 2025
Code Enforcement Officer Appreciation Week, October 5-11, 2025 National Fire Prevention Week, October 5-11, 2025

PUBLIC COMMENT PROCEDURES
If you wish to make a general public comment or comment on a specific agenda item, you are encouraged to attend the City Council meeting in person. Public comment may also be submitted via email at [email protected] and will be entered into the record. Public comments generally are limited to two minutes per speaker; the Mayor may further limit the time for public comments depending on the agenda schedule.

GENERAL PUBLIC COMMENTS
Receive public communications on items that are not on the agenda and that are in the City of Salinas’ subject matter jurisdiction. Comments on Consideration, Public Hearing items, and the Consent Agenda should be held until the items are reached.

CALIFORNIA GOVERNMENT CODE §84308 - LEVINE ACT
Government Code § 84308. Parties to any proceeding involving a license, permit or other entitlement for use pending before the City Council must disclose any campaign contributions over $500 (aggregated) within the preceding 12 months made by the party, their agent, and those required to be aggregated with their contributions under Government Code § 82015.5. The disclosure must include the amount contributed and the name(s) of the contributor(s).

ADMINISTRATIVE REPORTS
ID#25-383
Public meeting pursuant to Senate Bill 423 (SB 423) related to a proposed affordable housing project to be located at 467 and 479 East Market Street Recommendation: No action required. This is a public meeting pursuant to SB 423 to provide an opportunity for the public and City Council to comment on a proposed mixed-use development located at 467 and 479 East Market Street.

CONSIDERATION - 6:00 p.m.

ID#25-384
Referendum Against Ordinance No. 2687; City Council Action on the Referendum (Elections Code Section 9241)
Recommendation: This report presents the options available to the City Council as they relate to the Referendum Against Ordinance No. 2687.

Continued from September 9, 2025.

PUBLIC HEARINGS

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September 23, 2025City Council Meeting Agenda - Final
ID#25-404 Resolution To Levy Salinas United Business Association (SUBA) FY 2025-2026 Annual Assessment
Recommendation: Approve a Resolution to levy and collect the annual assessment in the Salinas United Business Association ("SUBA") Business Improvement Area ("BIA") for Fiscal Year (FY) 2025-2026.

ID#25-310
HUD Consolidated Annual Performance and Evaluation Report for FY 2024-25
Recommendation: Approve a Resolution affirming the Fiscal Year 2024-25 Consolidated Annual Performance and Evaluation Report (CAPER) and authorizing submittal to the United States Department of Housing and Urban Development (HUD).

ID#25-363
Public Hearing for Sanitary Sewer Rate Increase Adoption Recommendation: Approve a Resolution adopting the Sanitary Sewer Rates for 2025-2030 based on the Sewer Rate Schedule, provided there is no majority protest against the proposed sewer rates.

CONSIDERATION
ID#25-397
Residential Sewer Payment Assistance Program
Recommendation: Approve a Resolution establishing the City of Salinas Residential Sewer Payment Assistance Program.

ID#25-412
Award of FY 2025-26 Community Sponsorship
Recommendation: Approve a Resolution awarding community sponsorships for FY 2025-2026, pursuant to the City's Community Sponsorship Policy, to those Applicants recommended by the City's rating team.

CONSENT AGENDA
Matters listed under the Consent Agenda may be enacted by one motion unless a member of the Council requests a separate vote or discuss. Members of the public may comment on the Consent Agenda items collectively during their public comment.

ID#25-394
Minutes
Recommendation: Approve minutes of August 26, 2025.

ID#25-415 Minutes
Recommendation: Approve minutes of September 9, 2025.

ID#25-360 Amendment 1 to the Salinas Intermodal Transportation Center Memorandum of Understanding
Recommendation: Approve a Resolution approving Amendment 1 to the Salinas Intermodal Transportation Center Memorandum of Understanding with the Transportation Agency for the Monterey County and Monterey-Salinas Transit District.

ID#25-382
Surplus Vehicles and Equipment for Disposal
Recommendation: Approve a Resolution pursuant to Salinas Municipal Code section 12-15 declaring vehicles and equipment surplus and authorizing their disposal.

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September 23, 2025City Council Meeting Agenda - Final
ID#25-398 Acceptance of 2026 Office of Traffic Safety (OTS) Grant Awards Recommendation: Approve Resolutions authorizing the acceptance of 2026 OTS Grants - the Selective Traffic Enforcement Program (STEP) Grant in the amount of $85,000, the Selective Traffic Enforcement Program (STEP) Grant in the amount of $195,000; and establish the related grant appropriations and expense budgets to support grant activities.

ID#25-399
1ST Amendment to the Lease with LAZ Parking for 3 Station Place Recommendation: Approve a Resolution authorizing the Mayor to sign the 1st Amendment to the lease agreement between the City of Salinas and LAZ Parking California, LLC for the City-owned property located at 3 Station Place.

ID#25-405
Sale of City-Owned Property to the Monterey County Office of Education; Declaration of Exempt Surplus Land
Recommendation: 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.

ID#25-406
An Ordinance Amending Articles III and IIIA of Chapter 12 (Finance) of the Salinas Municipal Code Regarding Purchasing
Recommendation: Adopt an ordinance updating Article III and Article IIIA of Chapter 12 of the Salinas Municipal Code related to purchasing policies and procedures.

ID#25-407 Amendment to Memorandum of Understanding for Association of Management Personnel of Salinas
Recommendation: 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.

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

ADJOURNMENT
_____________________________
Patricia M. Barajas, City Clerk

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

Disability-related modification or accommodation, including auxiliary aids or services,

Page 5 ends

September 23, 2025City Council Meeting Agenda - Final
may be requested by any person with a disability who requires a modification or accommodation in order to participate in the meeting. Language interpretation may be requested as soon as possible but by no later than 5 p.m. of the last business day prior to the meeting. Requests should be referred to the City Clerk’s Office At 200 Lincoln Avenue, Salinas, 758-7381, as soon as possible but by no later than 5 p.m. of the last business day prior to the meeting. Hearing impaired or TTY/TDD text telephone users may contact the city by dialing 711 for the California Relay Service (CRS) or by telephoning any other service providers’ CRS telephone number.

PUBLIC NOTIFICATION
This agenda was posted on September 19, 2025 in the Salinas Rotunda and City's website.

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

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City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-410, Version: 1
a. Existing Litigation - California Government Code section 54956.9(a), conference with legal counsel regarding, Joshua Hostetter vs. City of Salinas, Workers’ Compensation Appeals Board Case Number (s): Unassigned.
b. Labor Negotiations - California Government Code Section 54957.6 with its designated labor representatives Rene Mendez, City Manager; Lisa Murphy, Assistant City Manager; Christopher A.

Callihan, City Attorney; Katherine Hogan, Assistant City Attorney; Selina Andrews, Finance Director; Marina Horta-Gallegos, Human Resources Director; Sylvia Enriquez, Human Resources Manager; and Che Johnson, Liebert Cassidy Whitmore, regarding labor relations with Service Employees International Union (SEIU), SEIU Supervisors, Salinas Municipal Employees Association/SEIU, Association of Management Personnel, Police Officers Association, Police Management Association, International Association of Firefighters, Fire Supervisors Association, Confidential Non-Management Employees, Confidential Management Employees, and Department Directors.

City of Salinas Printed on 9/19/2025Page 1 of 1
powered by Legistar™
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-383, Version: 1
Public meeting pursuant to Senate Bill 423 (SB 423) related to a proposed affordable housing project to be located at 467 and 479 East Market Street
No action required. This is a public meeting pursuant to SB 423 to provide an opportunity for the public and City Council to comment on a proposed mixed-use development located at 467 and 479 East Market Street.

City of Salinas Printed on 9/19/2025Page 1 of 1
powered by Legistar™

Page | 1

CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: SEPTEMBER 23, 2025
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: LISA BRINTON, DIRECTOR
THROUGH: COURTNEY GROSSMAN, PLANNING MANAGER

ORLANDO RODAS-REYES, ASSISTANT DIRECTOR

BY: THOMAS WILES, SENIOR PLANNER
TITLE: PUBLIC MEETING PURSUANT TO SENATE BILL 423 (SB 423)

RELATED TO A PROPOSED AFFORDABLE HOUSING PROJECT
TO BE LOCATED AT 467 AND 479 EAST MARKET STREET

RECOMMENDED MOTION:

No action required. This is a public meeting pursuant to SB 423 to provide an opportunity for the public and City Council to comment on a proposed mixed-use development located at 467 and 479 East Market Street.

EXECUTIVE SUMMARY:

On August 6, 2025, Envision II, LLC (Applicant) submitted a preliminary review application (PRE 2025-005) proposing to construct a 100% affordable, mixed-use residential development at 467 and 476 East Market Street. The Applicant also submitted a Notice of Intent to use Senate Bill 423 (SB 423) and Senate Bill 330 (SB 330) which streamline the approval of residential developments to facilitate the production of housing. A public meeting has been scheduled p ursuant to SB 423 and Government Code Section 65913.4(q)(1) to provide an opportunity for the public and the local government to comment on a future mixed-use development project located at the above referenced property.

On August 27, 2025 , the Applicant notified staff that the plans submitted with the preliminary review application would be revised due to financial feasibility concerns. Revised plans may be provided at the public meeting. Pursuant to Government Code Section 65941.1(d), after submittal of all the information required by Government Code Section 65941.1(a), if the development proponent revises the project such that the increase in number of residential units or square footage of construction is less than 20 percent than the original submittal, no additional review is required.

BACKGROUND:

Page | 2

The Applicant is proposing to demolish existing commercial buildings and construct a five (5) story, 59-foot high, 75-unit 100% affordable mixed -use building consisting of a north and south wing with 7,334 square-feet of ground floor retail space, 97 off-street parking spaces, murals, and alternative means of compliance for landscaping located on a 2.39 -acre site . The attached preliminary plans are generally similar to the previous mixed -use project known as Site Plan Review 2021-017 (SPR 2021-017) located at the same site, which was withdrawn by the Applicant on July 22, 2025. SPR 2021 -017 included the following five (5) concessions pursuant to Government Code Section 65915:

1. Reduction of usable open space;

2. Modifications to the Recycling and solid waste enclosure pedestrian access;

3. Reduction in the residential bedroom mix requirement of the Residential High Density (R-H-1.8) Zoning District;

4. Elimination of a solid wall along the north and east property lines; and

5. Reduction of ground floor commercial space.

Senate Bill 423 (SB 423)
Senate Bill 423 (SB 423), which took effect on January 1, 2024, extends the provisions of Senate Bill 35 (SB 35), and amended Government Code Section 65913.4 to create a streamlined ministerial approval process for urban in fill projects that are multifami ly or mixed-use where at least 2/3 of the square footage is for residential use subject to certain affordability requirements and are consistent with objective General Plan, Zoning, Subdivision, and design review standards.

The process for SB 423 starts with the submittal of a preliminary review application by the Applicant. As a part of the SB 423 process, a public meeting shall be scheduled within 45 days of the submittal of a Notice of Intent to submit a development application and payment of all applicable processing fees pursuant to Government Code Section 65913.4(q)(1) . SB 423 also requires tribal consultation. Pursuant to Government Code Section 65913.4(b)(1)(A)(i)(I) and (II), on August 7, 2025, the City provided a formal notice of the Applicant’s Notice of Intent to submit a future application to each California Native American tribe that is traditionally and culturally affiliated within the City of Salinas. The formal notice including a description and location of the proposed development and an invitation for a tribal consultation within 30 -days of receiving the notice. As of the drafting of this staff report, no consultation request has been received from any applicable California Native American tribe.

Public Meeting

The public meeting is to provide an opportunity for the public and the local government to comment on the development, which may be implemented into the future project submittal by the Applicant. At the meeting, the Applicant will present the proposed project. No determination will Page | 3
be made by the City Council at the meeting and the future project submittal is not subject to public review. Any future project will be required to comply with all applicable Zoning Code development regulations and State laws.

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).

Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No.

STRATEGIC PLAN INITIATIVE:

The proposed development advances the City Council’s 2025-2028 Strategic Plan Goals of Economic Development and Housing by revitalizing residential and commercial areas and facilitating the production of a variety of housing types for all income levels.

DEPARTMENTAL COORDINATION:

The Community Development Department is working closely with the City Attorney, Housing Division, Permit Center, Fire Department, and Public Works in the processing of this preliminary review.

FISCAL AND SUSTAINABILITY IMPACT:

There is no direct fiscal impact to the General Fund associated with this Preliminary Project Review as staff time for processing is already included in the FY 24-25 and FY 25-26 Operational Budget and offset by the application fee of $1,097.25.

Fund

Appropriation

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

ATTACHMENTS:

Project plans for 467/479 East Market Street
11/30/25
Scale
Project number
Print Date
Drawn by
Checked by
189 WALNUT AVE.

SANTA CRUZ, CA 95060
WORKBENCHBUILT.COM
P: 831.227.2217
All drawings and written material appering herin constitute original and unpublished work of Workbench, Inc. and may not be duplicated, used or disclosed without written consent of the Workbench, Inc.

ISSUES/ REVISIONS
APN
1/4" = 1'-0"
3/17/2025 12:45:25 PM
G0.00

COVER PAGE
20075
03/17/2025
MB
EB
467 & 479 East Market Street
Salinas, CA 93905
Envision Housing - Salinas
Envision Housing - Salinas
03/17/2025 - SB330
004-011-029 & 031
N.T.S
issue # description date
1 Planning Revisions 01 4/1/2022
2 Planning Revisions 02 2/3/2023
3 Planning Comments 03 7/14/2023
4 Planning Comments 04 01/17/2024
5 Planning Comments 05 10/29/2024
6 SB330 - Pre Application 03/17/2025
1 SB330 PREAPPLICATION 2025.0317

PROJECT TEAM

ARCHITECT

WORKBENCH
ARCHITECT: JAMILEH CANNON
CONTACT: JESSICA PRESLEY
189 WALNUT AVE.

SANTA CRUZ, CA 95060
P: 831.227.2217
E: [email protected]

CONTRACTOR

WORKBENCH
CONTACT: TIM GORDIN
189 WALNUT AVE.

SANTA CRUZ, CA 95060
P: 931.902.9734
E: [email protected]

ELECTRICAL
TBD

MECHANICAL
TBD

PLUMBING
TBD

JOINT TRENCH
TBD

STRUCTURAL
TBD

LANDSCAPE

BFS LANDSCAPE ARCHITECTS
CONTACT: BETH MATZ
425 PACIFIC STREET #201
MONTEREY, CA 93940
P: 831.646.1383
E: [email protected]

BUILDING MAINTENANCE
TBD
CIVIL
BKF
CONTACT: JEREMY MARELLO
1730 N. FIRST STREET, SUITE 600
SAN JOSE, CA 95112
P: 408.467.9137
E: [email protected]

LIGHTING
TBD

TRASH CONSULTANT
AMERICAN TRASH MGMT. INC.

CONTACT: CARLA SANCHEZ
1900 POWELL STREET
SUITE 220
EMERYVILLE, CA 94608
P: 510.607.7609
E: [email protected]

GREEN POINT RATER
TBD

LOW VOLTAGE / SECURITY
TBD

APPLICABLE CODES

1. 2022 CALIFORNIA BUILDING CODE

2. 2022 CALIFORNIA ELECTRICAL CODE

3. 2022 CALIFORNIA PLUMBING CODE

4. 2022 CALIFORNIA MECHANICAL CODE

5. 2022 CALIFORNIA FIRE CODE

6. 2022 CALIFORNIA GREEN BUILDING STANDARDS CODE

7. 2022 CALIFORNIA ENERGY EFFICIENCY STANDARDS CODE

CONCESSIONS

1. OPEN SPACE REDUCTION

2. DEVIATION FROM RECYCLING AND SOLID WASTE ENCLOSURE

STANDARDS

3. DEVIATION FROM RESIDENTIAL BEDROOMS PER DWELLING UNIT MIX REQUIREMENT OF THE R-H-1.8 DISTRICT FOR THE

PERCENTAGE OF THREE-AND FOUR-BEDROOM DWELLING UNITS

4. REPLACEMENT OF AN EIGHT (8) FOOT HIGH SOLID WALL WITH AN 8-FOOT-HIGH WOODEN FENCE

5. COMMERCIAL SPACE REDUCTION

DEFERRED SUBMITTALS

1. TENANT IMPROVEMENT

2. FIRE SPRINKLERS / AND ALARM

3. SOLAR

SCOPE OF WORK
DEMOLITION OF ALL EXISTING STRUCTURES. CONSTRUCTION OF A NEW MIXED USE,

PREDOMINANTLY MULTIFAMILY RESIDENTIAL, PROJECT WITH GROUND FLOOR COMMERCIAL IN NORTHERN PORTION OF DEVELOPMENT. PROPOSAL ALSO CONTAINS PARKING LOT, GROUND FLOOR RESIDENTIAL ENTRY COURTYARD, PLAY AREA, AND OPEN SPACES.

PUBLIC FUNDING IS TO BE USED ON THIS PROJECT, AND FINANCING FROM THE FEDERAL AND STATE LOW INCOME HOUSING TAX CREDIT PROGRAM WILL BE SOUGHT. TCAC REGULATIONS ARE APPLICABLE TO THE PROJECT.

THE PROJECT WILL BE UTILIZING THE STATE DENSITY BONUS
VICINITY MAP N.T.S
SUBJECT PROPERTY: 467 E. MARKET

PROJECT DATA
APN: 004-011-029, 004-011-031
ZONING DISTRICT: MAF (MIXED ARTERIAL FRONTAGE)
LOT SIZE: 104,010 SF
PROPOSED BUILDING AREA BY TYPE:

N. BUILDING (WING)
TYPE III-A 42,688 SQFT
S. BUILDING (WING)
TYPE I-A 7,334 SQFT
TYPE III-A 42,921 SQFT

BUILDING HEIGHT
N. BUILDING (WING)
59'
S. BUILDING (WING)
59'
BUILDING OCCUPANCIES:

N. BUILDING (WING)
R-2 (PRIMARY) WITH ACCESSORY OCCUPANCIES
(A-3, B, & S-2)
S. BUILDING (WING)
R-2 (PRIMARY) WITH ACCESSORY OCCUPANCIES
(A-3, B, F-1, & S-2)
VEHICLE PARKING SPACES: TOTAL
(SEE CHART PROJECT PARKING TOTAL COUNT BELOW

FOR BREAKDOWN)
REQUIRED BICYCLE PARKING SPACES:

CGC A4.106.9.2 CLASS I - LONG TERM BICYCLE PARKING
38 SPACES (1 SPOT FOR EVERY 2 DWELLING UNITS)
CGC A4.106.9.1 CLASS II - SHORT-TERM BICYCLE PARKING
5 SPACES (5% OF MOTORIZED VEHICLE PARKING)
37-50.400 SMC CLASS II - SHORT-TERM BICYCLE PARKING
10 SPACES (10% OF AUTOMOBILE PARKING SPACES)

COMMERCIAL, MIXED USE (MU), AND INDUSTRIAL
ZONING DISTRICTS USE CLASSIFICATIONS: 10%

OF THE REQUIREMENT FOR AUTOMOBILE

PARKING SPACES WHERE PARKING SPACE
REQUIREMENTS ARE TEN OR MORE SPACES. THE

MAXIMUM REQUIRED NUMBER OF BICYCLE PARKING

SPACES NEED NOT EXCEED FIFTY SPACES
PROVIDED BICYCLE PARKING SPACES:

CLASS I - LONG TERM BICYCLE PARKING
100 SPACES

CLASS II - SHORT TERM BICYCLE PARKING
12 SPACES

SPACE TYPE QUANTITY
ADA 3
VAN ADA 1
EV VAN ADA 1
EV 11
STANDARD 81
TOTAL 97
MOTORCYCLE 2
11/30/25
Scale
Project number
Print Date
Drawn by
Checked by
189 WALNUT AVE.

ISSUES/ REVISIONS
APN
1/4" = 1'-0"
3/17/2025 1:01:39 PM
G0.01

PROJECT

INFORMATION
20075
03/17/2025
JP/MB
EB
467 & 479 East Market Street
Salinas, CA 93905
Envision Housing - Salinas
004-011-029 & 031

LEVEL RESIDENTIAL CIRCULATION

CIRCULATION

EXTERIOR AMENITY MANAGEMENT

SERVICE /
MECH.

COMMERCIA

L TOTALS
LEVEL 1 0 SF 2,549 SF 0 SF 0 SF 0 SF 1,616 SF 7334 SF 11,499 SF LEVEL 2 7,194 SF 2,188 SF 0 SF 0 SF 0 SF 277 SF 0 SF 9,660 SF LEVEL 3 7,194 SF 2,188 SF 0 SF 0 SF 0 SF 277 SF 0 SF 9,660 SF LEVEL 4 7,194 SF 2,188 SF 0 SF 0 SF 0 SF 277 SF 0 SF 9,660 SF LEVEL 5 7,194 SF 2,188 SF 0 SF 0 SF 0 SF 277 SF 0 SF 9,660 SF ROOF 0 SF 117 SF 0 SF 0 SF 0 SF 0 SF 0 SF 117 SF
GRAND TOTALS 28,778 SF 11,419 SF 0 SF 0 SF 0 SF 2,724 SF 7334 SF 50,255 SF

SOUTH BUILDING WING GROSS AREA

GROSS AREA BY USE

NORTH BUILDING WING GROSS AREA

GROSS AREA BY USE

LEVEL RESIDENTIAL CIRCULATION

CIRCULATION

EXTERIOR AMENITY MANAGEMENT

SERVICE /
MECH.

COMMERCIA

L TOTALS
LEVEL 1 0 SF 2,118 SF 99 SF 4,297 SF 491 SF 800 SF 0 SF 7,805 SF LEVEL 2 6,140 SF 1,329 SF 587 SF 454 SF 0 SF 183 SF 0 SF 8,693 SF LEVEL 3 6,594 SF 1,329 SF 587 SF 0 SF 0 SF 183 SF 0 SF 8,693 SF LEVEL 4 6,594 SF 1,329 SF 587 SF 0 SF 0 SF 183 SF 0 SF 8,693 SF LEVEL 5 6,594 SF 1,329 SF 587 SF 0 SF 0 SF 183 SF 0 SF 8,693 SF ROOF 0 SF 112 SF 0 SF 0 SF 0 SF 0 SF 0 SF 112 SF
GRAND TOTALS 25,922 SF 7,546 SF 2,449 SF 4,751 SF 491 SF 1,532 SF 0 SF 42,691 SF

PROJECT - PARKING TOTAL COUNT

SOUTH BUILDING WING - UNIT COUNT

NORTH BUILDING WING - UNIT COUNT

PROJECT - UNIT TOTAL COUNT

SHEET LIST

GENERAL
G0.00 COVER PAGE
G0.01 PROJECT INFORMATION
G0.02 CODE INFORMATION
CIVIL
C1.0 EXISTING CONDITIONS

ARCHITECTURAL
A1.01 SITE PLAN
A3.00 ELEVATIONS
A3.01 ELEVATIONS
A3.02 ELEVATIONS
A3.03 ELEVATIONS
CIVIL
C7.1 EROSION CONTROL DETAILS
C7.2 EROSION CONTROL DETAILS

LANDSCAPE
L-1.0 CONCEPTUAL LANDSCAPE PLAN

LEVEL RESIDENTIAL CIRCULATION

CIRCULATION

EXTERIOR AMENITY MANAGEMENT

SERVICE /
MECH. COMMERCIAL TOTALS
LEVEL 1 0 SF 4,667 SF 99 SF 4,297 SF 491 SF 2,416 SF 7334 SF 19,304 SF LEVEL 2 13,334 SF 3,517 SF 587 SF 454 SF 0 SF 460 SF 0 SF 18,353 SF LEVEL 3 13,788 SF 3,517 SF 587 SF 0 SF 0 SF 460 SF 0 SF 18,353 SF LEVEL 4 13,788 SF 3,517 SF 587 SF 0 SF 0 SF 460 SF 0 SF 18,353 SF LEVEL 5 13,788 SF 3,517 SF 587 SF 0 SF 0 SF 460 SF 0 SF 18,353 SF ROOF 0 SF 229 SF 0 SF 0 SF 0 SF 0 SF 0 SF 229 SF
GRAND TOTALS 54,700 SF 18,965 SF 2,449 SF 4,751 SF 491 SF 4,256 SF 7334 SF 92,946 SF

TOTAL BUILDING GROSS AREA

GROSS AREA BY USE
Name Count PERCENTAGE
UNIT-1BR 20 50%
UNIT-2BR 8 20%
UNIT-3BR 12 30%
40 100%
Name Count PERCENTAGE
UNIT-1BR 15 43%
UNIT-2BR 12 34%
UNIT-3BR 8 23%
35 100%
Name Count PERCENTAGE
UNIT-1BR 35 47%
UNIT-2BR 20 27%
UNIT-3BR 20 27%
75 100%
N.T.S
issue # description dat e
1 Planning Revisions 01 4/1/2022
2 Planning Revisions 02 2/3/2023
3 Planning Comments 03 7/14/2023
4 Planning Comments 04 01/17/2024
5 Planning Comments 05 10/29/2024
6 SB330 - Pre Application 03/17/2025
1 SB330 PREAPPLICATION 2025.0317

BUILDING CODE NOTES
DEMOLITION:

CONSTRUCTION TYPE:

OCCUPANCY GROUPS:

OCCUPANCY

SEPARATIONS
(PER CBC 508.4):

HEIGHT AND NUMBER
OF STORIES:

AREA:

RESCUE WINDOWS:

FIRE PROTECTION:

FIRE BLDG. AREA MAX:

EXISTING STRUCTURES TO BE DEMOLISHED
TYPE I-A; SPRINKLERED & TYPE III-A; SPRINKLERED

BUILDING ELEMENT TYPE I-A TYPE III-A
PRIMARY STRUCTURAL FRAME 3 1
EXTERIOR BEARING WALLS 3 2
INTERIOR BEARING WALLS 3 1

NONBEARING WALLS AND
INTERIOR PARTITIONS (PER TABLE 602) 0 0

FLOOR CONSTRUCTION AND
ASSOC. SECONDARY MEMBERS 2 1

ROOF CONSTRUCTION AND
ASSOC. SECONDARY MEMBERS 1 1/2 1
PREDOMINANTLY R-2 (RESIDENTIAL), W/ SOME A-3, B, F-1, & S-2 SPACES TYPE I-A: NON-SEPARATED OCCUPANCIES ALLOWED PER 508.3, AS ALL OCCUPANCIES ALLOW UNLIMITED AREA PER TABLE 506
TYPE III-A: 1 HR SEPARATION BETWEEN ALL DIFFERENT OCCUPANCIES UNLESS

OTHERWISE NOTED
TYPE I-A: UL HEIGHT ALLOWED, 1-STORY PODIUM PROPOSED
TYPE III-A: 85'/5 STORIES ALLOWED, 59'/ 5 STORIES PROPOSED.

PROPOSED BUILDING MEETS THE REQUIREMENTS OF CBC 510.2 ALLOWING THE

TYPE I-A AND TYPE III-A PORTIONS TO BE CONSIDERED SEPARATE AND DISTINCT

BUILDINGS FOR THE PURPOSE OF DETERMINING AREA LIMITATIONS AND LIMITATIONS ON HEIGHT AND NUMBER OF STORIES. A 3-HR RATED HORIZONTAL ASSEMBLY IS PROVIDED BETWEEN THE TWO CONSTRUCTION TYPES.

TYPE IA AREA = UNLIMITED
TYPE IIIA AREA = SEE CALCULATIONS ON AREA CONTINUED

NOT REQUIRED
SPRINKLERED PER NFPA 13 AND CBC SECTION 903.2.8.
124,000 SF PER BUILDING
REQUIRED RATINGS:

MAXIMUM COMMON
PATH
OF EGRESS TRAVEL:

ACCESSIBLE MEANS OF
EGRESS INFO:

GENERAL ACCESSIBILITY:

REQUIRED STAIR WIDTH:

REQUIRED ROOF ACCESS:
(1011.12.2 EXCEPTION)
ERRCS SYSTEM:

TWO-WAY COMMS:

FIRE ALARM SYSTEM:

SMOKE DETECTION:

SMOKE CONTROL:

ELEVATOR NOTES:

SHAFTS: 2 HOURS
EXIT STAIR ENCLOSURES: 2 HOUR FIRE BARRIER
HORIZONTAL EXIT: 2 HOUR FIRE BARRIER
FIRE BARRIER: 3 HOUR FIRE
A: 75 FEET
B: 100 FEET
R-2: 125 FEET
F-1: 75 FEET
S-2: 100 FEET
PROVIDED VIA STAIRWAYS AND HORIZONTAL EXITS. NOTE THAT THE ELEVATOR

IS NOT PART OF THE ACCESSIBLE MEANS OF EGRESS PER EXCEPTION TO CBC 1009.2.1. STAIRWAYS ARE NOT REQUIRED TO HAVE 48" BETWEEN HANDRAILS, OR AN AREA OF REFUGE, PER EXCEPTIONS 2 AND 5 TO CBC 1009.3 THIS PROJECT DOES MEET THE DEFINITION OF "PUBLIC HOUSING" AND IS THEREFORE SUBJECT TO THE REQUIREMENTS OF CBC CHAPTER 11B FOR THE RESIDENTIAL UNITS. ALL COMMERCIAL AND COMMON RESIDENTIAL SPACES SHALL COMPLY WITH CHAPTER 11B
44" MINIMUM

ROOF IS UNOCCUPIED, THEREFORE ACCESS IS PROVIDED THROUGH A HATCH OF 16 SF FROM ONE STAIR ENCLOSURE PER EACH BUILDING WING.

ERRCS WILL COMPLY WITH 2022 CFC SECTION 510, 2015 NFPA 72, CHAPTER 24.

THE INFRASTRUCTURE (SHAFTS, EMPTY CONDUITS, STRUCTURAL BLOCK-OUTS, ETC.) ARE INCLUDED IN THE DRAWINGS, AND WILL BE INSTALLED AS PART OF THE BASE BUILDING CONTRACT. AFTER THE WALLS ARE BUILT AND THE

WINDOWS HAVE BEEN INSTALLED, THE CONTRACTOR WILL CONTACT THE FIRE DEPARTMENT TO TEST THE RADIO COVERAGE ON SITE. AT THAT TIME, A

DETERMINATION WILL BE MADE BY THE FD AS TO WHETHER A RADIO BOOSTER SYSTEM IS REQUIRED. IF IT IS REQUIRED, THEN IT WILL BE DESIGNED AND INSTALLED BY THE CONTRACTOR.

PROVIDED AT EACH SIDE OF THE HORIZONTAL EXIT.

PER NFPA 72 (2015 EDITION), TO BE INSTALLED THROUGHOUT THE BUILDING TO BE SUBMITTED BY THE DESIGN / BUILD FIRE ALARM CONTRACTOR.

SMOKE DETECTION TO BE AT FIRE ALARM CONTROL PANEL. SMOKE DETECTORS

AT ELEVATOR LOBBIES AND SHAFTS RETURN ELEVATOR TO A PRESELECTED FLOOR. HEAT DETECTOR AT ELEVATOR CONTROL ROOM SHUTS OFF ELEVATOR BEFORE SPRINKLER ACTIVATES. SMOKE DETECTORS SHALL SEND SIGNAL TO FIRE ALARM CONTROL PANEL.

NOT REQUIRED.

PASSENGER ELEVATOR(S), GEARLESS TRACTION MACHINE-ROOM-LESS TYPE.

ELEVATOR CABS CAN ACCOMMODATE AN AMBULANCE STRETCHER PER CBC 3002.4.3A. ELEVATORS CAR ENCLOSURE MATERIAL MEET THE REQUIREMENTS OF ASME A17.1, SAFETY CODE FOR ELEVATORS

ALLOWABLE AREA
CONT'D:

SOUTH BUILDING (WING) - ALLOWABLE AREA CALCULATIONS FOR III-A (R-2) PORTION PER 506.2.3
Aa = [At + (NS × If)] × Sa
At = 24,000 FOR TYPE III-A CONSTRUCTION
NS = 24,000 FOR TYPE III-A CONSTRUCTION
Sa = 2
If = [F/P - 0.25]W/30
VALUE IS GREATER THAN 30 SO BUILDING QUALIFIES FOR W=30 FULL PERIMETER (P) = 565
FRONTAGE (F) = 219 (49+64+15+91)
lf = 219/565 - 0.25 = 0.13
Aa = [24,000 + (24,000 × 0.13)] × 1 = 27,120 SF ALLOWED PER FLOOR

PLANNING CODE NOTES
ZONING DISTRICT:

HT. LIMIT:

SETBACKS:

FLOOD PLANE:

RIPARIAN:

MARKET STREET:

RESIDENTIAL:

USABLE OPEN SPACE:

PER SEC 37-30.250 (K)

DEVELOPMENT
STANDARDS FOR R-H-1.8
SHALL BE MET (SEC.
37-30.140)
UNIT COUNT & MIX:

PER SEC 37-30.250 (J)(3)

DEVELOPMENT
STANDARDS FOR R-H-1.8
SHALL BE MET (SEC.
37-30.140)
PARKING:

PER SEC 37-30.250 (J)(4)

DEVELOPMENT
STANDARDS FOR R-H-1.8

SHALL BE MET (ARTICLE
V DIVISION 2 SEC
37-50.360)

BICYCLE PARKING
(ARTICLE V DIVISION 2
SEC. 37-50.400 (b)(2))
STORMWATER:

FAR:
(SEC. 37-30.250)

CA GOVERMENT CODE
65915(f)(3)(D)(ii),

GROUND FLOOR
COMMERCIAL:

LANDSCAPE
REQUIREMENT:

MAF (MIXED-USE ARTERIAL FRONTAGE)
ALLOWED: 65'
PROVIDED: 59' EXCLUDING PARAPETS, ELEVATOR OVERRUNS AND OTHER

REQUIRED APPURTENANCES

VARIES - SEE PLANS
30' - SEE PLANS
0'
BUILDINGS CANNOT INTERSECT A 45º TILTED PLANE THAT STARTS 10’

ABOVE GRADE AT THE PROPERTY BOUNDARY BETWEEN OUR SITE AND THE RESIDENTIAL PROPERTIES THAT BOUND SITE ON EAST AND NORTH.

REQUIRED: PLAY AREA - MIN. 900 SF CHILDREN'S PLAY AREA
OPEN SPACE - MIN. 37,500 SF
500 SF OPEN SPACE PER UNIT = 500 SF X 75 UNITS
PROVIDED: CHILDREN'S PLAY AREA: 1,114 SF
OPEN SPACE: 30,231 SF
ALLOWED: PER STATE DENSITY BONUS &
PER SEC. 37-30.140:
3 BEDROOM UNITS = 20%
4 BEDROOM UNITS = 10%
PROVIDED: SEE PROJECT TOTAL CHART
QUALIFIES FOR AB2097
REQUIRED: RESIDENTIAL - 123 STALLS REQUIRED

1.5 STALLS PER EACH 1 BED = 52.5
2 STALLS PER EACH 2 BR = 40
2 STALLS PER EACH 2 BR = 30
REQUIRED: RESIDENTIAL - 7 EV CHARGING INSTALLED SPACES, OF WHICH 1 IS ACCESSIBLE
(5% OF 123 RESIDENTIAL SPACES THAT WOULD BE
REQUIRED WITHOUT AB 2097)
REQUIRED: RESIDENTIAL - 3 ACCESSIBLE PARKING STALLS, OF WHICH 1 IS VAN ACCESSIBLE AND 1 IS EV CHARGING
(2% OF 123 RESIDENTIAL SPACES THAT WOULD BE REQUIRED
WITHOUT AB 2097)
REQUIRED: COMMERCIAL - 19 STALLS REQUIRED
1 STALL PER 400 SF OF COMMERCIAL AREA =19 (7334/400)

NO LOADING SPACE REQUIRED
REQUIRED: COMMERCIAL - 1 VAN ACCESSIBLE PARKING STALL
(1 ADA STALL FOR 1-25 REQUIRED STALLS)
PROVIDED: 97 TOTAL PARKING SPACES PROVIDED
(SPACES SHARED BETWEEN

COMMERCIAL AND RESIDENTIAL USE, SEE BREAKDOWN ON
G0.01)
REQUIRED: 10 SPACES
10% OF CAR PARKING = 10 SPACES (97 X .10)

SEE CIVIL AND LANDSCAPE DRAWINGS
ALLOWED:
24 UNITS/ACRE = 24*2.38 = 57
PROJECT IS WITHIN 1/2 MILE OF A MAJOR TRANSIT STOP AND 100% AFFORDABLE. NO MAXIMUM DENSITY LIMITS ALLOWED.

PROVIDED:
.894 (92,943 TOTAL GSF / 104,010 LOT AREA SF = .894 FAR) REQUIRED: .25 FAR (104,010 SF X .25) = 26,002 SF
PROVIDED: CONCESSION SOUGHT (SEE SQ FTG. CHARTS)
REQUIRED: MIN. 5% OF SITE SHALL BE LANDSCAPED
PROVIDED: PROJECT COMPLIES, SEE CIVIL AND LANDSCAPE

DRAWINGS

ALLOWABLE AREA NORTH BUILDING (WING) - ALLOWABLE AREA CALCULATIONS FOR III-A (R-2) PORTION PER 506.2.3
Aa = [At + (NS × If)] × Sa
At = 24,000 FOR TYPE III-A CONSTRUCTION
NS = 24,000 FOR TYPE III-A CONSTRUCTION
Sa = 2
If = [F/P - 0.25]W/30
VALUE IS GREATER THAN 30 SO BUILDING QUALIFIES FOR W=30 FULL PERIMETER (P) = 574
FRONTAGE (F) = 574
lf = 574/574 - 0.25 = 0.75
Aa = [24,000 + (24,000 × 0.75)] × 1 = 42,000 SF ALLOWED PER FLOOR NOTES:

THE PROJECT WILL UTILIZE THE STATE DENSITY BONUS FOR JURISDICTIONAL RESPONSE TIMES, ETC.

AS THE UPPER STORIES OF THE PROJECT ARE CONNECTED AND REQUIRED AS A HORIZONTAL MEANS

OF EGRESS, THE PROJECT SHALL BE CONSIDERED ONE BUILDING FOR PURPOSES OF PLANNING AND ZONING.

NOTES:

THE PROJECT WILL UTILIZE THE STATE DENSITY BONUS FOR JURISDICTIONAL RESPONSE TIMES, ETC. SEE

PROJECT INFO FOR APPLICABLE CODE SECTIONS
11/30/25
Scale
Project number
Print Date
Drawn by
Checked by
189 WALNUT AVE.

ISSUES/ REVISIONS
APN
1/4" = 1'-0"
3/17/2025 12:45:28 PM
G0.02
CODE

INFORMATION
20075
03/17/2025
EB
EB
467 & 479 East Market Street
Salinas, CA 93905
Envision Housing - Salinas
004-011-029 & 031
N.T.S
issue # description date
1 Planning Revisions 01 4/1/2022
2 Planning Revisions 02 2/3/2023
3 Planning Comments 03 7/14/2023
4 Planning Comments 04 01/17/2024
5 Planning Comments 05 10/29/2024
6 SB330 - Pre Application 03/17/2025
1 SB330 PREAPPLICATION 2025.0317
12-31-23
Scale
Project number
Print Date
Drawn by
Checked by
189 WALNUT AVE.

ISSUES/ REVISIONS
APN
20181304
9-12-2024
BE
JM
004-011-029
issue #descriptiondate

AS SHOWN
STATE DENSITY BONUS & SB 330 PROJECT
467 & 479 East Market Street
Salinas, CA 93905
Envision Housing - Salinas
1Planning Revisions 014/1/2022
2Planning Revisions 022/03/2023
3Planning Comments 037/14/2023
5Planning Comments 059/12/2024
C1.0

EXISTING

CONDITIONS

ROLLED CURB
CURB CUTS - S.C.D.

CURB CUTS - S.C.D.

CLASS-II BIKE PARKING (6)

BRIDGE ABOVE CONNECTING

WINGS OF PROJECT
S.L.D. FOR COURTYARD
& PLANTER INFO.

S.C.D. FOR GRADING
HYDRANT LOCATION, S.C.D.

ADJ. PROPERTY: APN 004-011-014

MAF ZONING
ADJ. PROPERTY: APN 004-011-032

MAF ZONING
ADJ. PROPERTY:

APN 004-011-008
ADJ. PROPERTY:

APN 004-011-007
ADJ. PROPERTY:

APN 004-011-006
ADJ. PROPERTY:

APN 004-011-005
ADJ. PROPERTY:

APN 004-011-004
ADJ. PROPERTY:

APN 004-011-024
ADJ. PROPERTY:

APN 004-011-002
ADJ. PROPERTY:

APN 004-011-034
ADJ. PROPERTY:

APN 004-011-033
ADJ. PROPERTY: APN 004-011-027

MAF ZONING
ADJ. PROPERTY: APN 004-011-016

MAF ZONING
E. MARKET STREET
(80' PUBLIC STREET)

ALISAL CREEK

PRIVATE DRIVE
PROPERTY LINE 247.01'
PROPERTY LINE 102.76'
PROPERTY LINE 324.74'
PROPERTY LINE 135.03'
PROPERTY LINE 135.16'
P.L. 110.00'
P.L. 110.00'
P.L. 60.00'
P.L. 50.00' PROPERTY LINE 59.69'
PROPERTY LINE 267.20'
SUBJECT PROPERTY: 467 E. MARKET

MAF ZONING
APN 004-011-029
AREA: 104,010 SF

89.53°

90.47°
145
.47°
123.90° 89.53°

90.47°

89.53°

90.47°
30' - 0"

DUMPSTER STAGING
25' - 2"

42.5 @ LOWEST LEVEL

FLOOD PLANE SETBACK

ADA PARKING -
VAN

MOTORCYCLE PARKING
TRANSFORMER, S.L.D. FOR SCREENING

TRANSFORMER
6' - 6"

CLASS-II BIKE PARKING
(6)
OUTLINE OF BLDG. ABOVE
S.L.D. FOR PATH INFO
FDC
FDC

CHILDREN'S PLAY
AREA - 900 SF MIN

NORTH WING

SOUTH WING
COMMON OPEN SPACE -20,613 SF
(SHOWN W/ HATCH)

AWNING ABOVE

PRIMARY VEHICULAR

SITE ENTRY

TYPICAL PARKING SPACE
DIMENSIONS (8'-6" X 16'-0"+
3'-0" PLANTER OR SIDEWALK

OVERHANG)
S.C.D.
8' - 7 5/8"
S.C.D.
8' - 8"
R-M-2.9 ZONING
R-H-2.1 ZONING
MAF ZO
NING

COMMERCIAL ENTRY

PRIMARY PEDESTRIAN

SITE ENTRY
28' - 0"
24' - 0"
28' - 0"
28' - 0"
28' - 0"
TYP
8' - 6"
16' - 0" TYP
24' - 0"

OVERHANG TYP
3' - 0" PLANTER
TYP
8' - 6"

DASH INDICATES

VEHICLE OVERHANG, TYP
E.V.

E.V.

VAN
24' - 0" 12' - 0"
8'-0" TALL WOOD WALL PER
ZONING CODE 31-50.090(E)(3)
7' - 1"
7' - 7"
6' - 7"
1' - 4"
2' - 0"35' - 0" 2' - 0"

HATCH INDICATES

CLEAR VISABILITY AREAS
BETWEEN 3' AND 10' OF

DRIVEWAY GRADES PER
SECTION 37-50.460
15' - 0"
15' - 0"
E.V.
19' - 0" 19' - 0"
8' - 6"
16' - 0"

SIGNAGE INDICATING

RIGHT TURN ONLY AT EXIT
/1 G1.22
10' WIDE ENHANCED PAVING
15' - 0"
2 A3.25
Sim
2 A3.25
Sim

COMMUNITY GARDEN

BIORETENTION AREA,
TYP. S.C.D.

42.5 41.52

42.5 PLANTING AREAS, S.L.D.

PLANTER

PLAY AREA
CONC. WALKWAY, S.L.D.

CONCRETE WALKWAY,
S.L.D.
1 A3.30

CLASS-I BIKE

PARKING
(100)

FIRE DEPARTMENT NOTES

1. APPROVED ADDRESSED NUMBERS SHALL BE MIN. 6" TALL, LIGHTED, LEGIBLE

FROM STREET FRONTAGE & SHALL CONTRAST WITH/ THEIR BACKGROUND

2. PROVIDE AN EMERGENCY TELEPHONE ON THE JOB PRIOR TO ANY CONSTRUCTION.

3. FIRE DEPARTMENT ACCESS ROADWAYS SHALL BE MAINTAINED CLEAR & UNOBSTRUCTED. PROVIDE PROPER FIRE LANE SIGNAGE & CURB STRIPING PER THE VEHICLE CODE SECTION 22500.1. CONTACT THE FIRE DEPARTMENT FOR FIRE LANE PROGRAM GUIDELINES.

4. NO HAZARDOUS MATERIALS WHICH EXCEED THE QUANTITIES LISTED IN CBC TABLES 3-D & 3-E WILL BE STORED AND/OR USED WITHIN THE BUILDING.

5. PER SECTION 503.2.1 - FIRE APPARATUS ACCESS ROADS SHALL HAVE AN UNOBSTRUCTED WIDTH OF NOT LESS THAN 20 FEET (6096 MM), EXCLUSIVE

OF SHOULDERS, EXCEPT FOR APPROVED SECURITY GATES IN ACCORDANCE WITH SECTION 503.6, AND AN UNOBSTRUCTED VERTICAL CLEARANCE OF NOT LESS THAN 13 FEET 6 INCHES (4115 MM).

SITE NOTES

1. SEE CIVIL DRAWINGS FOR ALL GRADING, SITE

DIMENSIONS, SITE DEMO, DRAINAGE, AND SCP

2. SEE LANDSCAPE DRAWINGS FOR PLANTING AND

EXTERIOR PAVING/SURFACES

SITE LEGEND

PRIMARY BUILDING ENTRIES

OPEN SPACE

FLOOD-PROOFING NOTES

3. WET FLOODPROOFING IS REQUIRED TO

THE DESIGN FLOOD ELEVATION (DFE)
WHICH IS 1'-0" ABOVE THE BASE
FLOOD ELEVATION (BFE). THE DFE IS

47.6 FEET IN THIS AREA.

4. BASED ON THE ELEVATION OF THE
FIRST FLOOR AT 45.05 FEET AND THE
DFE AT 47.6 FEET, APPROXIMATELY THE
FIRST 2.6 FEET OF THE BUILDING
WILL NEED FLOODPROOFING.

5. ELECTRICAL TRANSFORMERS AND

ELECTRICAL OUTLETS MUST BE
ELEVATED ON THE FIRST FLOOR.

6. AREAS THAT REQUIRE WET
FLOODPROOFING:

6.1. STRUCTURES SHALL BE

ADEQUATELY ANCHORED TO

RESIST FLOTATION, COLLAPSE,

AND LATERAL MOVEMENT

6.2. MATERIALS BELOW THE DESIGN

FLOOD ELEVATION SHALL BE

FLOOD-DAMAGE RESISTANT

6.3 EXTERIOR WALLS SHALL HAVE

FLOOD OPENINGS TO

AUTOMATICALLY EQUALIZE

HYDROSTATIC FORCES

2.4. MECHANICAL AND UTILITY

EQUIPMENT SHALL BE PROTECTED

BY ELEVATING OR BY INSTALLING

AND CONFIGURING THE

EQUIPMENT COMPONENTS TO
MINIMIZE DAMAGE (E.G.,

ELEVATED WATER HEATER,

ELEVATED OUTLET)

6.5. FUEL TANKS SHALL BE ANCHORED

TO RESIST FLOTATION AND

LATERAL MOVEMENT

6.6. INSULATION SHALL BE RIGID,

CLOSED CELL INSULATON IN THE
FLOOD ZONE.

1. FL

OODPROOFING TO BE

IMPLEMENTED ALONG THE FIRST
FLOOR ELEVATIONS OF THE BUILDINGS.

2. NO RESIDENTIAL USE TO BE ALLOWED
ON THE FIRST FLOOR.
11/30/25
Scale
Project number
Print Date
Drawn by
Checked by
189 WALNUT AVE.

ISSUES/ REVISIONS
APN
As indicated
3/17/2025 12:44:37 PM
A1.01

SITE PLAN
20075
03/17/2025
OH
EB
467 & 479 East Market Street
Salinas, CA 93905
Envision Housing - Salinas
004-011-029 & 031
1" = 20'-0"1 SITE PLAN

PROJECT NORTH TRUE NORTH
issue # description date
1 Planning Revisions 01 4/1/2022
2 Planning Revisions 02 2/3/2023
3 Planning Comments 03 7/14/2023
4 Planning Comments 04 01/17/2024
5 Planning Comments 05 10/29/2024
6 SB330 - Pre Application 03/17/2025
1 SB330 PREAPPLICATION 2025.0317
S3
LEVEL 1
0' - 0"
LEVEL 2
15' - 0"
LEVEL 3
26' - 0"
LEVEL 4
37' - 0"
LEVEL 5
48' - 0"

PENTHOUSE
ELEV.
66' - 0"
S4
ROOF
59' - 0"
P.L.
59' - 0" - BUILDING HT. TO T.O. STRUCTURAL ROOF
11' - 0"11' - 0"11' - 0"11' - 0"15' - 0"
ADJ. BLDG.
+/- 17' - 0"
ADJ. PROPERTY - APN 004-011-016 (SUBJECT PROPERTY BEYOND)SUBJECT PROPERTYADJ. PROPERTY - APN 004-011-027 SUBJECT PROPERTY WD. SLAT & PTD. MTL.

AWNING AND SCREENING
OR SIM.

COMMERCIAL

SIGNAGE & ADDRESS
EXT. DISPLAY CASES
PER T.I.

ADJACENT PROPERTY:

APN 004-011-016
S9S8S7S6S5 S10S2S1
11' - 1"12' - 1"11' - 2"11' - 2"13' - 2"11' - 10 3/4"3' - 8 1/2"10' - 3 1/4"15' - 10 1/4"9' - 11 3/4" P.L. P.L.

T.O. ROOF STRUCTURE

BEHIND PARAPET, SHOWN
DASHED

MEP ROOF SCREEN BEYOND
T.O. ELEVATOR SHAFT BEYOND

VERTICAL RANDOM PATTERN

FIBER CEMENT SIDING

STUCCO, PAINTED

BOARD FORMED

CONCRETE
2' - 0"2' - 6"
7' - 0"
LEVEL 1
0' - 0"
LEVEL 2
15' - 0"
LEVEL 3
26' - 0"
LEVEL 4
37' - 0"
LEVEL 5
48' - 0"

PENTHOUSE
ELEV.
66' - 0"
ROOF
59' - 0"
P.L.

P.L.

ALUMINUM OR FIBERGLASS

WINDOWS W/ RECESSED FRAME

CONNECTING BRIDGES
BEYOND
PTD. WD. W/ PTD. MTL.

GUARDRAILS OR SIM.

ADJ. PROPERTY: APN 004-011-016
NORTH

BUILDING EAST

ELEVATION
WOOD SLAT AND PTD. MTL AWNING OR
SIM.

T.O. ROOF STRUCTURE BEHIND

PARAPET, SHOWN DASHED
11' - 0"11' - 0"11' - 0"11' - 0"15' - 0"
WOOD & ALUMINUM STOREFRONT OR SIM.

ADJ. PROPERTY - APN 004-011-016 (SUBJECT PROPERTY BEYOND) SUBJECT PROPERTYE. MARKET STREET

MEP ROOF SCREEN BEYOND
W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W13 W14 W15 W16
12' - 2" 11' - 2" 13' - 2" 15' - 7" 15' - 7" 15' - 7" 13' - 2" 11' - 2" 12' - 2" 4' - 11" 23' - 9 7/8" 11' - 2" 11' - 2" 13' - 2" 59' - 0" - BUILDING HT. TO T.O. STRUCTURAL ROOF
P.L.

W12 STUCCO, PAINTED

VERTICAL WOODEN OR WOOD-LOOK SIDING
OR SIM.

HORIZONTAL FIBER CEMENT PLANKS

STUCCO, PAINTED
7' - 0"
11/30/25
Scale
Project number
Print Date
Drawn by
Checked by
189 WALNUT AVE.

ISSUES/ REVISIONS
APN
1/8" = 1'-0"
3/17/2025 12:54:23 PM
A3.00

ELEVATIONS
20075
03/17/2025
DS
EB
467 & 479 East Market Street
Salinas, CA 93905
Envision Housing - Salinas
004-011-029 & 031
1/8" = 1'-0"2 SOUTH BUILDING WING - SOUTH ELEVATION
1/8" = 1'-0"1 SOUTH BUILDING WING - EAST ELEVATION
issue # description dat e
1 Planning Revisions 01 4/1/2022
2 Planning Revisions 02 2/3/2023
3 Planning Comments 03 7/14/2023
4 Planning Comments 04 01/17/2024
6 SB330 - Pre Application 03/17/2025
1 SB330 PREAPPLICATION 2025.0317
S3
LEVEL 1
0' - 0"
LEVEL 2
15' - 0"
LEVEL 3
26' - 0"
LEVEL 4
37' - 0"
LEVEL 5
48' - 0"

PENTHOUSE
ELEV.
66' - 0"
ROOF
59' - 0"
P.L.

ADJ. PROPERTY -
APN 004-011-027

ELEVATOR PENTHOUSE BEYOND
T.O. ROOF STRUCTURE BEHIND

PARAPET, SHOWN DASHED

BRIDGE CONNECTING UPPER

PORTIONS OF STRUCTURE

PARKING
11' - 0" 11' - 0" 11' - 0" 11' - 0"

MEP ROOF SCREEN BEYOND
S9 S8 S7 S6 S5S10 S2 S1

SUBJECT PROPERTY
12' - 1" 11' - 2" 11' - 2" 13' - 2" 11' - 10 3/4" 13' - 11 3/4" 15' - 10 1/4" 9' - 11 3/4"

STUCCO, PAINTED

VERTICAL RANDOM PATTERN

FIBER CEMENT SIDING

HORIZONTAL FIBER

CEMENT PLANKS

STUCCO,

PAINTED
15' - 0"
59' - 0" - BUILDING HT. TO T.O. STRUCTURAL ROOF

STUCCO,

PAINTED
7' - 0"
LEVEL 1
0' - 0"
LEVEL 2
15' - 0"
LEVEL 3
26' - 0"
LEVEL 4
37' - 0"
LEVEL 5
48' - 0"

PENTHOUSE
ELEV.
66' - 0"
ROOF
59' - 0"
P.L.
11' - 0"11' - 0"11' - 0"11' - 0"15' - 0"

NORTH BUILDING

WEST ELEVATION
E. MARKET
STREET

CONNECTING BRIDGES BEYOND
PTD. WD. W/ PTD. MTL. GUARDRAILS OR
SIM.

COURTYARD ENTRY
FENCE - S.L.D.

W1W2W3W4W5W6W7W8W9W10W11W13W14W15W16
13' - 2" 11' - 2" 11' - 2" 23' - 9 7/8" 4' - 11" 12' - 2" 11' - 2" 13' - 2" 15' - 7" 15' - 7" 15' - 7" 13' - 2" 11' - 2" 12' - 2" 59' - 0" - BUILDING HT. TO T.O. STRUCTURAL ROOF

SUBJECT PROPERTY
W12
T.O. ROOF STRUCTURE

BEHIND PARAPET, SHOWN
DASHED

MEP ROOF SCREEN BEYOND
T.O. ELEVATOR SHAFT BEYOND

VERTICAL RANDOM

PATTERN FIBER

CEMENT SIDING

STUCCO, PAINTED

POSSIBLE MURAL

LOCATION

METAL SUNSHADES,

PAINTED
7' - 0"
11/30/25
Scale
Project number
Print Date
Drawn by
Checked by
189 WALNUT AVE.

ISSUES/ REVISIONS
APN
1/8" = 1'-0"
3/17/2025 12:54:35 PM
A3.01

ELEVATIONS
20075
03/17/2025
DS
EB
467 & 479 East Market Street
Salinas, CA 93905
Envision Housing - Salinas
004-011-029 & 031
1/8" = 1'-0"1 SOUTH BUILDING WING - NORTH ELEVATION
1/8" = 1'-0"2 SOUTH BUILDING WING - WEST ELEVATION
issue # description dat e
1 Planning Revisions 01 4/1/2022
2 Planning Revisions 02 2/3/2023
3 Planning Comments 03 7/14/2023
4 Planning Comments 04 01/17/2024
6 SB330 - Pre Application 03/17/2025
1 SB330 PREAPPLICATION 2025.0317
LEVEL 1
0' - 0"
LEVEL 2
15' - 0"
LEVEL 3
26' - 0"
LEVEL 4
37' - 0"
LEVEL 5
48' - 0"
ROOF
59' - 0"
11' - 0"11' - 0"11' - 0"15' - 0"

SOUTH BUILDING EAST

ELEVATION

CONNECTING

BRIDGES BEYOND
PTD. WD. W/ PTD.

MTL. GUARDRAILS
MEP ROOF SCREEN BEYOND NW10NW9NW8NW7NW6NW5NW4NW3NW2NW1 NW11 NW12

PARKING AREA

SUBJECT PROPERTY
12' - 2" 11' - 2" 11' - 2" 13' - 2" 15' - 7" 13' - 2" 11' - 2" 12' - 2" 15' - 7" 25' - 0 1/4" 8' - 4 7/8" 59' - 0" - BUILDING HT. TO T.O. STRUCTURAL ROOF
T.O. ROOF STRUCTURE BEHIND

PARAPET, SHOWN DASHED

VERTICAL RANDOM

PATTERN FIBER CEMENT
SIDING

HORIZONTAL FIBER

CEMENT PLANKS

STUCCO, PAINTED

VERTICAL WOODEN BOARD
& BATTEN
11' - 0"
LEVEL 1
0' - 0"
LEVEL 2
15' - 0"
LEVEL 3
26' - 0"
LEVEL 4
37' - 0"
LEVEL 5
48' - 0"

PENTHOUSE
ELEV.
66' - 0"
ROOF
59' - 0"
11' - 0"11' - 0"11' - 0"11' - 0"15' - 0"

ALUMINUM
STOREFRONT OR SIM.
59' - 0" - BUILDING HT. TO T.O. STRUCTURAL ROOF

LANDSCAPE AREA PARKING AREA
T.O. ROOF STRUCTURE BEHIND

PARAPET, SHOWN DASHED

MEP ROOF SCREEN
BEYOND
N4 N3 N1N5 N2

SUBJECT PROPERTY
29' - 10" 5' - 0" 26' - 1 1/2" 3' - 8 1/2"

PAINTD METAL
SUNSHADES OR EQ.

ELEVATOR PENTHOUSE
BEYOND

STUCCO, PAINTED
7' - 0"
11/30/25
Scale
Project number
Print Date
Drawn by
Checked by
189 WALNUT AVE.

ISSUES/ REVISIONS
APN
1/8" = 1'-0"
3/17/2025 12:54:46 PM
A3.02

ELEVATIONS
20075
03/17/2025
DS
EB
467 & 479 East Market Street
Salinas, CA 93905
Envision Housing - Salinas
004-011-029 & 031
1/8" = 1'-0"1 NORTH BUILDING WING - EAST ELEVATION
1/8" = 1'-0"2 NORTH BUILDING WING - SOUTH ELEVATION
issue # description dat e
1 Planning Revisions 01 4/1/2022
2 Planning Revisions 02 2/3/2023
3 Planning Comments 03 7/14/2023
4 Planning Comments 04 01/17/2024
6 SB330 - Pre Application 03/17/2025
1 SB330 PREAPPLICATION 2025.0317
LEVEL 1
0' - 0"
LEVEL 2
15' - 0"
LEVEL 3
26' - 0"
LEVEL 4
37' - 0"
LEVEL 5
48' - 0"

PENTHOUSE
ELEV.
66' - 0"
ROOF
59' - 0"
11' - 0"11' - 0"11' - 0"11' - 0"15' - 0"

SOUTH BUILDING WEST

ELEVATION
59' - 0" - BUILDING HT. TO T.O. STRUCTURAL ROOF
MEP ROOF SCREEN BEYONDNW10 NW9 NW8 NW7 NW6 NW5 NW4 NW3 NW2 NW1NW11NW12 12' - 2"11' - 2"11' - 2"13' - 2"15' - 7"13' - 2"11' - 2"12' - 2"15' - 7"25' - 0 1/4"8' - 4 7/8"

SUBJECT PROPERTY
T.O. ROOF STRUCTURE BEHIND PARAPET,

SHOWN DASHED

HORIZONTAL FIBER

CEMENT SIDING

VERTICAL RANDOM

PATTERN FIBER CEMENT
SIDING

STUCCO, PAINTED

VERTICAL WOOD OR

WOOD LOOK SIDING OR
SIM.
7' - 0"
LEVEL 1
0' - 0"
LEVEL 2
15' - 0"
LEVEL 3
26' - 0"
LEVEL 4
37' - 0"
LEVEL 5
48' - 0"

PENTHOUSE
ELEV.
66' - 0"
ROOF
59' - 0"
11' - 0"11' - 0"11' - 0"15' - 0"
59' - 0" - BUILDING HT. TO T.O. STRUCTURAL ROOF

PARKING AREA
MEP ROOF SCREEN BEYONDN4N3N1 N5N2
11' - 0"
29' - 10"5' - 0"26' - 1 1/2"3' - 8 1/2"

SUBJECT PROPERTY

T.O. ROOF STRUCTURE BEHIND

PARAPET, SHOWN DASHED

HORIZONTAL FIBER CEMENT SIDING

VERTICAL RANDOM PATTERN

FIBER CEMENT SIDING

STUCCO, PAINTED

VERTICAL WOODEN BOARD &
BATTEN
7' - 0"
11/30/25
Scale
Project number
Print Date
Drawn by
Checked by
189 WALNUT AVE.

ISSUES/ REVISIONS
APN
1/8" = 1'-0"
3/17/2025 12:54:54 PM
A3.03

ELEVATIONS
20075
03/17/2025
DS
EB
467 & 479 East Market Street
Salinas, CA 93905
Envision Housing - Salinas
004-011-029 & 031
1/8" = 1'-0"1 NORTH BUILDING WING- WEST ELEVATION
1/8" = 1'-0"2 NORTH BUILDING WING - NORTH ELEVATION
issue # description dat e
1 Planning Revisions 01 4/1/2022
2 Planning Revisions 02 2/3/2023
3 Planning Comments 03 7/14/2023
4 Planning Comments 04 01/17/2024
6 SB330 - Pre Application 03/17/2025
1 SB330 PREAPPLICATION 2025.0317
The New Way Homes Fund
works to create affordable
housing in our region that
wouldn’t otherwise happen.

First Try – unsuccessful due to timing and costs

CLEANUP OF CONTAMINATED SOIL
New Way Homes has been
awarded >$2M from the state of
CA to remove/clean soil with
contamination from a formerly
underground tank removed
decades ago.

Phase I of soil removal completed
in 2023. The remaining phase is
being planned for 2026.

Meanwhile…
Working on New, Feasible Design, TBD

Potential site plan:

PROJECT WORKING TO INCLUDE:
• 75-85 rental units
• 100% affordable, ranging 30-80% AMI
• ~25% 3-bedrooms, ~25% 2-bedrooms
• Kitchen incubator & women’s business
center by El Pajaro CDC
• Large outdoor space for residents, including
restoration of riparian corridor
• At least one parking space per unit (more
than required)
• 5-6 story building
Potential Building Design
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-384, Version: 1
Referendum Against Ordinance No. 2687; City Council Action on the Referendum (Elections Code Section 9241)
This report presents the options available to the City Council as they relate to the Referendum Against Ordinance No. 2687.

City of Salinas Printed on 9/5/2025Page 1 of 1
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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: SEPTEMBER 9, 2025
DEPARTMENT: ADMINISTRATION
CITY ATTORNEY’S OFFICE

FROM: RENÉ MENDEZ, CITY MANAGER
CHRISTOPHER A. CALLIHAN, CITY ATTORNEY
PATRICIA M. BARAJAS, CITY CLERK

ALEXIS MEJIA, ASSISTANT CITY CLERK

TITLE: REFERENDUM AGAINST ORDINANCE NO. 2687;

CITY COUNCIL ACTION ON THE REFERENDUM
(ELECTIONS CODE SECTION 9241)

RECOMMENDED MOTION:

This Report presents the City Council with options to consider related to the Referendum Against Ordinance No. 2687:

1. Repeal Ordinance No. 2687 (the “Repeal Ordinance”);

2. Submit Ordinance No. 2687 to the voters, at the next regular municipal election occurring not less than 88 days after the order of the City Council;

3. Submit Ordinance 2687 to the voters at a special election occurring not less than 88 days after the order of the City Council; or

4. Provide other direction to City staff.

Should the City Council choose to repeal the Repeal Ordinance, an ordinance to that effect is attached as Exhibit A.. Pursuant to City Charter section 11.3, an ordinance can be passed on the day of its introduction only upon the unanimous vote of the City Council. If the ordinance receives less than unanimous support, it may be intro duced on September 9, 2025, and will return to the City Council on September 23, 2025, for adoption. In either case, the ordinance would become effective until thirty (30) days after the date of adoption.

EXECUTIVE SUMMARY:

On August 15, 2025, the Monterey County Registrar of Voters issued a Certificate of Signature Verification related to a Referendum Against Ordinance No. 2687 (the “Referendum”). With the Page | 2
Referendum having met the minimum criteria established by Salinas Cha ter section 4.2 and California Elections Code, on August 15, 2025, the City Clerk certified the results, pursuant to Elections Code section 9114 and 9115, and presented to the City Council following receipt of the Registrar’s Certificate of Signature Verification. Following receipt of a report from the City Clerk, on August 26, 2025, the City Council approved a Resolution accepting the Certificate of Signature Verification related to the Repeal Ordinance.

Following the City Council’s approval of Resolution 23324 accepting the Certificate of Signature Verification and as required by Elections Code section 9241, the City Council must now consider and select from between two options: (1) adopt an ordinance repealing the Repeal Ordinance, or (2) submit the Repe al Ordinance to the voters of Salinas, either at the next regular municipal election on November or at a special election called for that purpose. The Elections Code does not provide a time frame by which the City Council must make its determination on those two options; however, the Council should not unnecessarily delay its consideration of this matter. The City Council could also provide additional direction to staff.

BACKGROUND:

Referendum Petition

On May 13, 2025, the City Council introduced an ordinance to repeal four rent-related ordinances previously adopted by the City Council (the Repeal Ordinance): Ordinance No. 2663 (Residential Rental Registration Program), Ordinance No. 2681 (Rent Stabilization), Ordinance No. 2682 (Tenant Protection and Just Cause Eviction), and Ordinance No. 2683 (Tenant Anti-Harassment).

These four ordinances are collectively referred to in this Report as the “Ordinances.” On June 3, 2025, the City Council adopted the Repeal Ordinance (Ordinance No. 2687) and it was attested to by the City Clerk on that same date.

The Repeal Ordinance was due to become effective thirty (30) days after its adoption on July 3, 2025, pursuant to Government Code section 36937. Within the thirty (30) day period prescribed in Elections Code section 9237, “Protect Salinas Renters 2026” (the “Proponents”) submitted a referendum of the Repeal Ordinance to the City Clerk. Consistent with the obligations imposed by Elections Code sections 9239 and 9210, on July 3, 2025, the City Clerk determined that, based solely on a raw count, that the number of signatures affixed to the Referendum petition was in excess of the minimum number of signatures required and accepted the Referendum petition for filing. Upon the City Clerk’s acceptance of the Referend um petition for filing, the effective date of Ordinance No. 2687 was automatically suspended by operation of law. (Elections Code section 9237)

On July 3, 2025, the City Clerk delivered the Referendum petition to the Monterey County Registrar of Voters (“Registrar”) for a full check and examination of signatures ; to verify the signatures affixed to the Referendum petition were from registered voters of Salinas and otherwise met the requirements of the Elections Code. The City’s instructions to the Registr ar requested examination of signatures and certification be accomplished by full check pursuant to Elections Code section 9114. Based on the Registrar’s determination that valid signatures of more than 10% of the City’s voter registration were present on the Referendum petition, on August 15, 2025 (thirty Page | 3
(30) days after the date of filing, excluding weekends and holidays) , the Registrar issued a Certificate of Signature Verification and was received by the City Clerk on that same day . On August 15, 2025, the City Clerk forwarded the Certificate of Sufficiency to the Proponents; the City Council was also informed of the results of the Registrar’s signature verification.

In accordance with Elections Code sections 9114 and 9115, certification of the qualified Referendum petition was presented to the City Council for acceptance on August 26, 2025.

Following receipt of a report from the City Clerk, on August 26, 2025, the City Council approved Resolution 23324 accepting the Certificate of Signature Verification related to the Repeal Ordinance.

With the City Council’s acceptance of the Certificate of Signature Verification related to the Repeal Ordinance, pursuant to Elections Code section 9241 the City Council is thus presented with options:

1. Repeal the Repeal Ordinance; or

2. Submit the Repeal Ordinance to the voters, e ither at the next regular municipal election occurring not less than 88 days after the order of the City Council, or at a special election called for that purpose, not less than 88 days after order of the City Council.

Repealing the Repeal Ordinance.

The City Council may choose to repeal the Repeal Ordinance. A draft ordinance to that effect is attached to this Report should the City Council choose that option. The ordinance may be introduced and passed at the September 9, 2025, meeting only upon the u nanimous vote of the City Council, otherwise it may be introduced on September, 9, 2025, and may be adopted on September 23, 2025. In either case, the ordinance would not become effective until thirty (30) days after its adoption. (Charter Section 11.3).

Choosing to repeal the Repeal Ordinance would leave the four rent-related ordinances in place and effective thereby ending the referendum process. The City Council would be prohibited by Elections Code section 9241 from reconsidering the Repeal Ordinance for a period of twelve (12) months after adoption of the ordinance. During that period the City Council could, however, make amendments to the four rent-related ordinances.1

Election Options.

Should the City Council not choose to repeal Ordinance No. 2687, as outlined above, the City Council must submit Ordinance No. 2687 to the voters, either at the next regular municipal election occurring not less than 88 days after the order of the City Cou ncil, or at a special election called for the purpose, not less than 88 days after the order of the City Council.

1 Amendments to one or more of the four rent-related ordinances may be necessary to address issues with enforceability or implementation.

Page | 4
The election on the Referendum could be held on the following dates:

November 3, 2026 General Municipal Election

The City Council may choose to present the Repeal Ordinance to the voters at the next regular municipal election occurring on November 3, 2026, within no less than 88 days after the order of the City Council. The City Council will also need to request cons olidation of said election as required by California Elections Code Division 10 which outlines the general provisions and procedures for the conduct of local and consolidated elections. Council will also be asked to consider ordering the election pursuant to California Elections Code section 10002, Salinas City Charter section 3.3, and request that it be consolidated with the regularly scheduled November 3, 2026, General Municipal Election.

June 2, 2026 Statewide Primary Election – Consolidated Special Municipal Election

The City may also submit the Repeal Ordinance to the voters at a special election called for that purpose not less than 88 days after the order of the legislative body. The County of Monterey is conducting a Statewide Primary Election on Tuesday, June 2, 2026. If the City Council decides to submit the Referendum to the voters during the Statewide Primary, the City Council will also need to request for consolidation of said election as required by California Elections Code Division 10.

April 16, 2026 Special Municipal Election – Standalone

The City Council may also submit the Repeal Ordinance to the voters at a special standalone election, called for that purpose not less than 88 days after the date of the order of election in accordance with Elections Code section 1410 and 1000(c). Election Code 1000(c) establishes the second Tuesday of April in each even -numbered year as a potential election date. An election in April is considered a special standalone election as there are no other elections scheduled for April 16, 2026.

Other Tuesday

Election Code section 1003(e) allows elections related to referendum and initiative petitions may be held on a date other than what is provided in Election Code 1000(c), provided that the requirements of Election Code 1100 are met which states that elections cannot be held on a Tuesday before, on or after a state holiday. As such, a standalone election may be held on any Tuesday not earlier than December 6, 2025 (88th day from September 9, 2025).

Should the City Council determine to present Ordinance No. 2687 to the voters, a Resolution to that effect is attached to this Report. City staff will need to return to the City Council with additional action items for consideration related to the election at a later date.

Projected Election Costs.

The City will incur costs associated with submitting Ordinance No. 2687 to the voters, whether that be at the next regular election (November 2026) or at a special election for that purpose.

Page | 5
Election costs are estimated based on historical average election costs including all districts in the county across all election types.

The estimated cost for a general municipal election can range between $494,445 and $706,350; $7 to $10 per registered voter for a total of 70,635 voters as of September 3, 2025.

The estimated cost for a special election can range between $1,130,160 and $1,695,240; $16 to $24 per registered voter for a total 70,635 voters as of September 3, 2025.

Attached to this report is guide prepared by the Monterey County Elections Department “Election Cost Estimates” to better understand how election cost range based on historical election costs are calculated and the variables impacting actual cost.

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 15061(b)(3)). 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.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No.

STRATEGIC PLAN INITIATIVE:

While not directly aligned with any of the goals or objectives of the City Council’s 2025 Strategic Plan, the City Council’s consideration of options related to the Referendum on the Repeal Ordinance may implicate the City Services goal as it relates to ensuring fiscal responsibility and financial management.

DEPARTMENTAL COORDINATION:

The City’s Administration Department—City Manager and City Clerk—coordinated with the City Attorney on this Report.

Page | 6
FISCAL AND SUSTAINABILITY IMPACT:

Fund

Appropriation

Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 25-26
Operating
Budget Page
Last Budget
Action (Date,
Resolution)
1000 80.8002-

63.6010- Other
Outside Services
0 Unknown N/A

There is no immediate impact to the City’s General Fund associated with the Cit y Council’s determination between the two options; however, should the City Council choose to put the Repeal Ordinance to the voters at either the next regular municipal election or a special election, there will be an impact on the City’s General Fund as outlined above.

As outlined above, it is important to summarize that the costs would range from $494,445 to $1,695,240. It is also important to understand that if the election is scheduled and held before June 30, 2026, a future item would be brought back to the Council to amend the budget to cover the costs. At a minimum, it would use up all the remaining resources available in the Budget Stabilization Contingency Fund (of $605,714) and would require additional fund balance and/or use of reserves. Should the election be scheduled after July 1, 2026, the costs would be programmed in the FY 2026/27 City Budget.

ATTACHMENTS:

Ordinance
Resolution
Election Cost Estimates

Page | 7
ORDINANCE NO. _______ (N.C.S.)

AN ORDINANCE REPEALING ORDINANCE NO. 2687

WHEREAS, on June 3, 2025, the City Council adopted and the City Clerk attested to the adoption of Ordinance No. 2687 which was to have the effect of repealing Ordinance No. 2663, Ordinance No. 2681, Ordinance No. 2682, and Ordinance No. 2683; and

WHEREAS, prior to Ordinance No. 2687 becoming effective pursuant to Government Code section 36937, within the thirty (30) day period prescribed in Elections Code section 9237, on July 3, 2025, “Protect Salinas Renters 2026” submitted a referendum of Ordinance No. 2687 to the City Clerk; and

WHEREAS, consistent with the obligations imposed upon the City Clerk by Elections Code sections 9239 and 9210, on July 3, 2025, the City Clerk determined that, based solely on a raw count, the number of signatures affixed to the Referendum petition was in excess of the minimum number of signatures required and accepted the Referendum petition for filing; and

WHEREAS, upon the City Clerk’s acceptance of the Referendum petition for filing, the effective date of Ordinance No. 2687 was automatically suspended by operation of law pursuant to Elections Code section 9237; and

WHEREAS, on July 3, 2025, the City Clerk delivered the Referendum petition to the Monterey County Registrar of Voters for a full check and examination of the signatures affixed to the Referendum petition. Based on the Registrar’s determination that valid signatures of more th an 10% of the City’s voter registration were present on the Referendum petition, on August 15, 2025, the Registrar issued a Certificate of Signature verification which was received by the City Clerk on that same date. On August 15, 2025, the City Clerk forwarded the Certificate of Sufficiency to the proponents of the referendum and informed the City Council of the results; and

WHEREAS, on A ugust 26, 2025, in accordance with Elections Code sections 9114 and 9115, certification of the qualified Referendum petition was presented to the City Council for acceptance and following receipt of a report from the City Clerk, the City Council approved a Resolution accepting the Certificate of Signature Verification related to the Repeal Ordinance; and

NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF SALINAS, AS FOLLOWS:

SECTION 1. Ordinance No. 2687 is hereby repealed in its entirety.

SECTION 2. All ordinances and parts of ordinances and all resolutions and parts of resolutions in conflict herewith are hereby repealed as of the effective date of this ordinance.

Page | 8

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

SECTION 4. CEQA Compliance. The City Council’s adoption of this ordinance is not a project subject to environmental review under the California Environmental Quality Act (CEQA Guidelines Section 15061(b)(3) 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 woul d be subsequently declared invalid or unconstitutional.

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

INTRODUCED on the 9th day of September, 2025, and ADOPTED the ____ day of September, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

_________________________________
Dennis Donohue, Mayor

APPROVED AS TO FORM:

___________________________________
Christopher A. Callihan, City Attorney

ATTEST:

Page | 9

___________________________________
Patricia M. Barajas, City Clerk

Page | 10
RESOLUTION NO. _______ (N.C.S.)

A RESOLUTION OF THE SALINAS CITY COUNCIL DIRECTING THE CITY CLERK TO SUBMIT ORDINANCE NO. 2687 TO THE VOTERS OF SALINAS

WHEREAS, on July 3, 2025, the City Clerk delivered the Referendum petition to the Monterey County Registrar of Voters for a full check and examination of the sig natures affixed to the Referendum petition. Based on the Registrar’s determination that valid signatures of more than 10% of the City’s voter registration were present on the Referendum petition, on August 15, 2025, the Registrar issued a Certificate of Si gnature verification which was received by the City Clerk on that same date. On August 15, 2025, the City Clerk forwarded the Certificate of Sufficiency to the proponents of the referendum and informed the City Council of the results; and

WHEREAS, on Augu st 26, 2025, in accordance with Elections Code sections 9114 and 9115, certification of the qualified Referendum petition was presented to the City Council for acceptance and following receipt of a report from the City Clerk, the City Council approved a Re solution accepting the Certificate of Signature Verification related to the Repeal Ordinance; and

WHEREAS, on September 6, 2025, having accepted the Certificate of Verification related to the referendum of Ordinance No. 2687, the City Council considered t he options available to it under Elections Code section 9241 and determined to submit Ordinance No. 2687 to the voters of Salinas at a special election for that purpose (DATE TBD)/the next regular election (November 2026).

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF SALINAS that the City Clerk is hereby directed to submit Ordinance No. 2687 to the voters of Salinas at a special election for that purpose (DATE TBD)/the next regular election (November 2026) and to return to return to the City Council, as needed, for additional action required to meet the intent of this Resolution and to take whatever additional actions may necessary to meet the intent of this Resolution.

Page | 11

PASSED AND APPROVED this 9th day of September, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

________________________________________
Dennis Donohue, Mayor

ATTEST:

___________________________________
Patricia M. Barajas, City Clerk
A Guide for Districts

MONTEREY COUNTY ELECTIONS
1441 SCHILLING PLACE - NORTH BUILDING
SALINAS, CA 93901
PHONE : (831) 796-1499
FAX: (831) 755-5485
COUNTYOFMONTEREY.GOV/ELECTIONS

ELECTION COST ESTIMATES
Table of Contents
Election Cost Estimates..................................................................................................................... 2 Variables Impacting Actual Costs ....................................................................................................... 2 Calculating Election Cost Estimates ................................................................................................... 3 Election Invoices ............................................................................................................................... 3 Election Disclaimer ........................................................................................................................... 3 Election Cost Estimates
Local districts can calculate an estimated cost range based on historical election costs. These cost estimates are calculated to provide districts with the information they need to budget for an election.

These estimates are based on historical averaged election costs including all districts in the county across all election types. The estimates are provided in the following categories:
• Consolidated Election: an election in which other districts are also holding an election and costs are shared. Typically includes polling places and mail ballot. • Standalone Election, Polling Places: a special election in which no other districts share the cost of the election. This estimate includes polling places and mail ballot. • Standalone Election, All-Mail: a special election in which no other districts share the cost of the election. This estimate does not include polling places.

Variables Impacting Actual Costs
The estimated range is not a ﬁxed fee and will differ from the actual rate billed based on variables that impact the actual cost. These variables include but are not limited to the size of the district (district registration varies from 18 voters to over 218,000 voters); the number of districts sharing the cost of the election; the number of contests and candidates the district has on the ballot; the length of candidate statements and the party responsible for candidate statements; printing full measure text, the addition of arguments, rebuttals and additional pages in the voter information guide related to the measure, the actual number of registered voters at the time of the election; as well as changes in legislation will all impact the actual cost of any election.

A district consolidating with a primary election, with fewer districts sharing the cost, will experience a higher per registered voter cost than if they consolidate with a general election in which all districts are now participating, reducing the individual district’s share of the election. Both of these scenarios are considered consolidated elections. The average cost of consolidating in these scenarios is reﬂected in the range.

The estimated cost range is based on historical costs inclusive of all variables and all districts.

Considering the various scenarios, a district may experience election costs well below the range, within the range, or slightly above the range for any given election. Given the number of variables, the estimated range is provided to districts to ensure the district is prepared for their potential proportional share of the election.

When calculating cost estimates, the range is based on all districts and all scenarios. The estimated range is inclusive of varying numbers of contests. The range for a district will not double in a single election with the addition of a contest.

Example: If District A is scheduled to have their board member election in the November General Election, their estimated range for that election will be the standard range for consolidated elections. If District A then adds a measure on the ballot, the estimated range for District A remains unchanged. District A will still use the standard estimated range for their district in budgeting for the election.

Calculating Election Cost Estimates
To calculate cost estimates, the district will multiply the number of registered voters in the area going to election by the dollar amount representing the average “low” of election costs and then separately for the average “high” of election costs. (Again, these are historical averages based on all districts and scenarios). For the categories of elections, these include:
• Consolidated Election: $7 to $10
• Standalone Election, Polling Places: $16 to $24
• Standalone Election, All-Mail: $14 to $22
Amounts on the range have recently been adjusted to reﬂect increases in costs related to staffing, printing, mailing, etc. Medium to large-sized districts may experience actual costs below the estimated range for consolidated elections during a regular scheduled general election. Each district will have record of their actual election costs.

The number of registered voters as of the last report of registration to the Secretary of State is available at Voter Registration Counts. For current registration counts, please contact [email protected].

Election Invoices
Election billing takes 4 to 5 months on average. This timeframe is needed to ensure all invoices related to the election and any potential funding sources that would off-set election costs are received and processed.

Election Disclaimer
Please note that calculating an estimate using the formula provided in this material is not consent or agreement to hold, consolidate or provide support services for an election. Requests from districts for any election scenario must be received in the form of an adopted resolution and considered by the Elections Department and brought to the Board of Supervisors. For more information, please contact [email protected].

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-404, Version: 1
Resolution To Levy Salinas United Business Association (SUBA) FY 2025-2026 Annual Assessment Approve a Resolution to levy and collect the annual assessment in the Salinas United Business Association (“SUBA”) Business Improvement Area (“BIA”) for Fiscal Year (FY) 2025-2026.

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: COMMUNITY DEVELOPMENT

FROM: LISA BRINTON, DIRECTOR

BY: CRYSTAL CASILLAS, BUSINESS NAVIGATOR

TITLE: RESOLUTION TO LEVY SALINAS U NITED BUSINESS
ASSOCIATION (SUBA) FY 2025-2026 ANNUAL ASSESSMENT

RECOMMENDED MOTION:

A motion to approve a Resolution to levy and collect the annual assessment in the Salinas United Business Association (“SUBA”) Business Improvement Area (“BIA”) for Fiscal Year (FY) 2025- 2026.

EXECUTIVE SUMMARY:

As required by California Streets and Highways Code Section 36535, “Parking and Business Improvement Area Law of 1989”, prior to considering approval of a resolution to levy the annual assessment in the SUBA BIA, the City is to hold a public hearing to rec eive the testimony of all interested persons for or against the levy of an assessment for FY 202 5-2026. Pr ovided that protests received represent less than 50% of the assessments proposed to be levied, the Council can confirm the Annual Report for FY 202 5-2026 and its proposed budget for FY 202 5-2026, which shall constitute the levy of assessment for this fiscal year.

BACKGROUND:

The Salinas United Business Association (SUBA) is a 501(c)(6) nonprofit corporation appointed by the City Council to serve as the Advisory Board of the Business Improvement Area formed in 2004 under the Parking and Business Improvement Area Law of 1989. Through the levying of assessments, SUBA provides district members with benefit services - support and resources they need to be successful business owners including business training, marketing, and streetscape beautification and maintenance. The SUBA BIA is located in East Salinas, its boundaries include the major commercial corridors of E. Market and E. Alisal Streets and N. Sanborn Road. A boundary map is provided as an attachment to this report. No boundary changes are proposed.

On August 12, 2025, the City Council received SUBA’s 2024-2025 Annual Report and approved a Resolution of Intention (R.O.I.) to hold a public hearing on September 23, 2025, to consider the levy and collection of assessment for 202 5-2026. As required by the Streets and Highways Code, Page | 2
R.O. I. 660 was noticed in the Monterey County Weekly, a local newspaper, on August 21, 2025, not less than seven (7) days prior to the public hearing.

Consideration of Annual Levy of Assessment

At the hearing, Council will hear the testimony of all interested persons for or against the levy. If protests of BIA members are less than 50% of the assessments proposed, the Council can duly overrule protests and deny all said protests and objections. Following the hearing, the Council may confirm the FY 2024-2025 Annual Report as filed by SUBA or the Council may modify the Annual Report and conf irm it as modified. Adoption of the resolution confirming the FY 2024-2025 Annual Report shall constitute the levy of assessment for FY 2025-2026.

If written protests are received from the owners of businesses in the SUBA BIA which will pay 50% or more of the assessments proposed to be levied in FY 20 25-2026 and protests are not withdrawn so as to reduce the protests to less than that 50%, no further proceeding to levy an assessment for FY 2025-2026 shall be taken for a period of one year from the date of the finding of a majority protest. If the majority protest is only against the furnishing of a specified type of improvement or activity in the Business Improvement Area, specific improvement(s) or activity(ies) will be eliminated.

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).

Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

Yes.

STRATEGIC PLAN INITIATIVE:

This action aligns with the City Council’s goals (2025-2028) of Economic Development in supporting new and established businesses to drive economic growth and job creation . SUBA utilizes the BIA assessment to provide small businesses with access to the educational, technical assistance and financial resources they need to prosper, expand, and engage businesses in existing beautification efforts.

DEPARTMENTAL COORDINATION:

Community Development staff acts as SUBA’s City liaison. The Finance Department assisted Community Development with verifying the assessment projections for FY 2025-2026. As highlighted in the Annual Report, Community Development, Public Works, and Police Department staff have collaborated with SUBA to support its goals of improving the safety, cleanliness, and appearance of the BIA.

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FISCAL AND SUSTAINABILITY IMPACT:

The levy of assessment for FY 2025 -2026 will have no direct fiscal impact on the General Fund.

Under the Ordinance No. 2622 (NCS), § 2, 11 -5-2019, SUBA is to remit and collect the annual assessment. The City SUBA liaison’s time for coordination, participation in Board Meetings, and review of the annual report and processing of the annual levy of assessment is allocated through staff salaries in the adopted FY 2025-2026 City budget. The Salinas Municipal Code Section 21B-

40. Collection of assessments; delinquencies. states that assessments will be due and payable in advance on November 1st.

Fund

Appropriation

Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 25-26
Operating
Budget Page
Last Budget
Action
n/a n/a n/a n/a n/a n/a n/a

ATTACHMENTS:

1. Resolution to Levy Assessment

2. 2024-2025 SUBA Annual Report

3. SUBA BIA 2025-2026 Assessment Calculations

4. SUBA Proposed Budget 2025-2026

5. Map – SUBA Boundaries
RESOLUTION NO. (N.C.S.)

RESOLUTION LEVYING FISCAL YEAR 2025-2026 ASSESSMENTS FOR THE

SALINAS UNITED BUSINESS ASSOCIATION BUSINESS IMPROVEMENT AREA

WHEREAS, Division 18, Part 6, of the California Streets and Highway Code authorizes the establishment of a Parking and Business Improvement Area pursuant to the provisions of section 36500, et seq; and

WHEREAS, the former Sunset Avenue Redevelopment Area is occu pied by businesses and retail stores which are underutilized and unable to attract customers due to inadequate facilities, services, and activities in the business district; and

WHEREAS, the Salinas City Council adopted Ordinance No. 2437 establishing th e Salinas United Business Association Business Improvement Area (“SUBA BIA”) on August 23, 2004; and

WHEREAS, Ordinance No. 2455 adopted by Council on September 20, 2005, revised said BIA’s method of assessment; and

WHEREAS, under Ordinance 2622, adop ted by Council on November 5, 2019 SUBA is to remit and collect the annual assessment; and

WHEREAS, at its August 12, 2025 meeting, the City Council approved Resolution No. 660 (R.O.I.) entitled “Resolution of Intention to Levy an Annual Assessment in t he SUBA Business Area for Fiscal Year 202 5-2026,” R.O.I. No. 6 60 accepted the Advisory Board’s FY 2024-2025 Annual Report and set a public hearing date of on September 23, 2025, to consider the levy of assessment; and

WHEREAS, as required by the Streets and Highways Code, R.O. I. 6 60 was noticed in the Monterey County Weekly, a local newspaper, on August 21, 2025, not less than seven (7) days prior to the public hearing; and

WHEREAS, since the City Council meeting on August 12, 2025, the City’s Finance Department has provided a calculation of assessments for 2025-2026 for a total of $109,078; and

WHEREAS, , a public hearing w as held on September 23, 20 25, in the City Council Chambers of the City Council at 200 Lincoln Avenue, Salinas. At the hearing the City Council heard and duly considered protests and objections, both oral and written, to the levy of an assessment for FY 2025-2026 within said BIA; and

WHEREAS, the protests and objections, both written and oral, to the levy that were received and dul y considered during said hearing comprised less than 50% of the assessments proposed to be levied; and

WHEREAS, The City of Salinas has determined that the proposed action confirming SUBA’s annual report and considering SUBA’s annual levy of assessment is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).

Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

NOW, THEREFORE, BE IT RESOLVED BY T HE SALINAS CITY
COUNCIL that the Council duly overrules protests of businesses , which will pay less than 50% of the assessments proposed to be levied and denies all said protests and objections.

BE IT FURTHER RESOLVED that the SUBA Business Improvement A rea FY 2024-2025 Annual Assessment District Report and Budget for FY 2025-2026 is confirmed as originally filed, which shall constitute the levy of assessments for the SUBA Business Improvement Area for FY 2025-2026.

PASSED AND ADOPTED this 23rd day of September 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Dennis Donohue, Mayor

ATTEST:

Patricia M. Barajas, City Clerk

2024-2025 ANNUAL REPORT

Table of Contents

About the Salinas United Business Association 2
Area Map 3
Board 4
Staff 4
Vision and Mission 5
Events 6
2024/2025 Budget 8
Proposed 2025/2026 Budget 9
Assessments 2025/2026 11
Annual Plan 11
Annual Summary 19
2025/2026 Goals 23

Ribbon Cutting and Grand Opening of A Jeweler’s on E. Alisal Street on September 29, 2024 .

About the Salinas United Business
Association

The Salinas United Business
Association (SUBA). In 2003, East
Salinas businesses began having a
conversation about how to improve
the Alisal area. The conversation
led to the question of how to get
more resources from the City of
Salinas into the area. The idea was
that East Salinas businesses were
contributing a large portion of sales
tax to the City of Salinas.

The small business owners felt that there was not enough investment from the City of Salinas in return. A group of 7 business owners came together and had a meeting with the Redevelopment Agency to brainstorm on how to create more opportunities for the small businesses. The Salinas United Business Association was formed in 2004 after these businesses along with City staff and volunteers gathered signatures to start a BIA (Business Improvement Area). SUBA serves as the Advisory Board of the Business Improvement Area (BIA) formed in 2004 under the Parking and Business Improvement Area Law of 1989. Through the levying of assessments, SUBA provides area members with benefit services, support, and resources they need to be successful business owners including business training, marketing and streetscape beautification and maintenance.

SUBA collaborates closely with the City of Salinas and the Alisal Vibrancy Plan to enhance opportunities for beautification, district identity, and the integration of additional art within Alisal.

Establishing a safe, vibrant, and clean community is essential for supporting small businesses and attracting new customers. SUBA is committed to honoring the region's rich land, culture, and history, which collectively define the Alisal community.

Salinas United Business Association Map

Board of Directors 2024/2025

President
Natalie Angulo-Galaxy Party Supply 382 E. Market Street, Salinas, CA 93905

Vice-President
Angie Ramos-Salinas Pizza 988 Acosta Plaza, Salinas, CA 93905

Treasurer
Sylvia Agamao-Leal Bakery 805 E. Alisal Street, Salinas, CA 93905

Secretary-Vacant

Past President
Jose Juan Mancera-Mercadito Alegria 727 E. Alisal Street, Salinas, CA 93905

Board of Directors

Rodolfo Rodriguez-La Plaza Bakery 20 N. Sanborn Road, Salinas, CA 93905

Griselda Rodriguez-Electronics Plus 646 E. Alisal Street, Salinas, CA 93905

Lupe Covarrubias-Martinez- County of Monterey 632 E. Alisal Street, Salinas, CA 93905

Tony Valencia-Radio Lazer 600 E. Market Street, Salinas, CA 93905

City of Salinas Liaisons
Orlando Osornio, District 4 City Council Member / Gloria De La Rosa, District 4 City Council Member* Carla Gonzalez, District 1 City Council Member (Alternate) / Tony Barrera, District 2 City Council Member* Crystal Casillas-City of Salinas Small Business Navigator

STAFF

Executive Director
Alejandro Chavez

Outreach-Part-Time
Jose Barajas

VISION

Salinas United Business Association
600 East Market Street, Ste. 205, Salinas, CA 93905 [email protected] subasalinas.org
(831) 796-0896

*City of Salinas has eliminated the liaison city council member to the board

“The New Alisal is the jewel of the Salinas Valley, an economic powerhouse and a thriving community where everyone is welcomed”

MISSION
“We are a community driven business association rising to improve East Salinas business district”

Events

The Salinas United Business Association hosts a variety of large events yearly.

Thousands of people flock to the SUBA area each year to experience cultural, walkable and unique events.

Events include:

● Día del Niño*
● El Grito*
● Ciclovía
● Horse Parade on E. Alisal Street*
● Small Business Saturday
● Posada de Navidad
● Los Reyes Magos
● Día del Los Muertos

*These events occurred in the SUBA area but were not organized by SUBA or sponsored by SUBA

Salinas United Business Association BUDGET

BUDGET: 2024/2025

Salinas United Business Association
Budget 2024-2025

Income Approved Actual % of Budget
SUBA BID Assessments & Associated Membership (*projected) $ 100,440 40,550 40% Contracts $ 85,000 90,000 106% Grants $ 5,000 0 0% Donations $ 5,000 8,620 172%
Events (Sponorships) $ 10,000 3,500 35% Fund Balance from FY 2022/23 $ 8,527_ 1,835 Total Income $213,967 $144,505 68% Expense Approved Actual % of Budget Operations $ 213,967 $144,505 68% Accounting $ 4,500 3,742 83% Conferences/Staff Development $ 3,500 2,219 63% Insurance $ 4,550 2,153 47% Permits $ 1,000 1,014 101% Dues and Subscriptions $ 300 358 119% Office Furniture & Equipment $ 2,250 277 12% Office Supplies $ 4,750 2,198 46% Postage* $ 2,250 0.00 0%
Telephone, Website & Internet $ 3,900 2,856 73% Rent* $ 12,000 9,360 78% Personnel Costs $ 145,500 90,142 62% Miscellaneous/Special Events $ 2,000 390 20% Beautification and Landscaping $ 4,000 980 25% Marketing & Promotion $ 8,500 3,820 45% Safety $ 2,400 1,135 47% Business Resources $ 7,500 9,769 130% Total Expenses $ 208,900 $ 130,413 62%

Fund Balance for 2024/2025 $ 5,067 $ 14,092

*Included in office supplies

Assessments for the Salinas United
Business Association

(Assessment Documents must be inserted once we receive from City of Salinas or HDL)

Annual Plan

2024-2025 Goals-Accomplishments:

COLLABORATE Worked throughout the year with the City of Salinas, including the Community Development and Police Departments, on public events, safety meetings, and development reviews. Also collaborated with organizations such as the Salinas Valley Chamber of Commerce, Negozee, Monterey County Workforce Development Council, El Pajaro CDC, Mission Services Corporation, Central Coast SBDC, MCBC, and See Monterey. Formed a partnership with UC Santa Cruz's Get Virtual program to support businesses with website and social media needs.

Our partnerships, particularly with MCBC, Central Coast SBDC, and Arranque Empresarial, have made it possible for SUBA to provide workshops, webinars, outreach, and resources to businesses. Without their support, SUBA would have difficulty offering these services and maintaining business participation in assessments.

WORK Worked throughout the year with the County Health Department, Code Enforcement, Salinas City Police, Monterey County Workforce Development, SUBA members, and Cal Trans to improve health and safety monitoring.

Organized two cleanups during the year. Coordinated with Police and Public Works to address issues affecting SUBA and small businesses, particularly those related to unhoused individuals. Collaborated with restaurants and mobile food vendors to manage the rise in unpermitted vendors citywide. With crime, especially burglaries, increasing in the SUBA area, SUBA held two safety meetings and multiple one-on-one sessions with businesses to address concerns.

We helped SUBA small businesses find loans, secure short-term funding, research grants, and apply for them—including grants from Verizon, Alice, and others. Our partner MCBC supported us with Refrigeration Grants and various outreach initiatives.

OFFER SUBA promoted and collaborated on business workshops and classes with El Pajaro CDC, Negozee, Mission Services Corporation, Central Coast SBDC, Monterey County Business Council, Monterey County Works, and the City of Salinas to support small business growth. A total of 214 businesses participated in these events. Notably, partnerships with Negozee, Monterey County Business Council, and Arranque Empresial helped deliver webinars and workshops in which approximately 119 SUBA member businesses took part.

IMPLEMENT We aimed to beautify the SUBA business corridor with eight planned clean-ups; three were completed. Some businesses joined as Clean Up Ambassadors, conducting regular clean-ups around their premises. Our primary focus was encouraging over nine small businesses to clean in front of their shops biweekly.

2024/2025 Goals

This year, SUBA focused on strengthening member relationships and offering useful resources. Over the past few years, resource support for our businesses has improved significantly.

The recent economic shifts have become increasingly apparent, as evidenced by widespread vacancies and the closure of numerous small businesses throughout the SUBA area. Additionally, there has been a

noticeable decline in foot traffic and consumer activity, with anecdotal reports indicating that sales have decreased by 30% to as much as 80% compared to last year. Most businesses are experiencing a 30% reduction in sales, while several have provided concrete financial data substantiating this downward trend.

SUBA has expanded its partnerships, focusing on marketing to better support members and help businesses develop an online presence. Key collaborations include the Salinas Valley Chamber of Commerce, Monterey County Business Council, SEE Monterey, and Get Virtual from UC Santa Cruz.

SUBA continues to assist local businesses and strengthen its ties within the business community. A large focus was on really pushing for shopping local and our focus on our social media posts were to highlight our small businesses and to emphasize shopping local. In addition we connected many of our small businesses to work with MCBC, APEX and the Central Coast SBDC in order to maximize their connectivity to becoming aware of contracting with local government, state government and the federal government to further making small businesses viable.

Over the past year, SUBA hosted one business mixer and organized three ribbon-cutting ceremonies.

The organization continues to work collaboratively with the City of Salinas Community Development and Public Works Departments, as well as the Salinas Police Department, to promote and improve the SUBA business area. Furthermore, partnerships with both non-profit and for-profit entities have contributed to the development of enhanced training and workshop opportunities.

SUBA has strengthened its partnership with the City of Salinas, collaborating to boost organizational capacity. As part of both the Alisal Vibrancy Plan and Vision Salinas General Plan steering committees, SUBA helps guide regional development. The Alisal area continues to do well, contributing to Salinas' well-being. SUBA has also worked with the Chamber of Commerce and SPARC to form an Economic Development Shareholders Committee, providing input on updating the city's Economic Development Element.

Marketing and Promotions
Over the past year, SUBA enhanced
communication with its membership by
conducting several formal and informal
surveys and analyzing the resulting data to
improve member services. SUBA will
continue collaborating with other
stakeholder groups, expanding electronic
communication and social media outreach
through webinars and workshops.

Throughout the last five fiscal years, we
have consistently promoted our businesses
and industries via various channels,
including holiday and event promotions, as
well as social media and radio campaigns.

These efforts will remain a priority in the
upcoming fiscal year.

Additionally, SUBA representatives
conducted door-to-door outreach, visiting
more than 1,729 businesses—many of
them multiple times throughout the year. SUBA remains committed to strengthening relationships with other business organizations such as Negozee, El Pajaro CDC, Central Coast SBDC, Salinas Valley Chamber of Commerce, and others, to support small businesses and cultural events within and beyond the SUBA area. We will also continue to develop additional advertising opportunities for members in good standing, allowing them to promote their businesses through SUBA-sponsored social media marketing and other platforms. This past year we offered several opportunities with our media partners and huge discounts as well as special promotions exclusive for our SUBA members.

Our partnership with Get Virtual from UC Santa Cruz will continue, enabling us to facilitate website creation and expand social media presence for our businesses. Staff time allocated to this program is accounted for within the current budget. Our goals for the upcoming fiscal year in Marketing and Promotions are as follows:

Goal 1A- Provide 40 Social Media Posts for business spotlights

SUBA provided Social Media posts spotlighting 117 businesses during the fiscal year. SUBA plans to continue efforts to increase this objective. Additionally, focus was maintained on adding businesses to the SEE Monterey Website and assisting businesses with the creation of new websites.

Goal 2A- Provide 20 Social Media Posts for the SUBA area promoting shopping campaigns and or events

SUBA published 38 social media posts promoting shopping campaigns and/or events.

Goal 3A- Provide 15 Interviews on the Television/Radio regarding promoting the SUBA area and/or services SUBA provides its members for 24/25 Fiscal Year

Provided 10 radio interviews and 6 television interviews promoting the SUBA area, services, grants, shopping experience and promoting events in the SUBA area.

Goal 4A- Provide 4 Ribbon
Cutting Ceremonies
for SUBA businesses
for 24/25 Fiscal
Year.

SUBA provided 3
Ribbon Cutting
Ceremonies for
SUBA businesses in
the fiscal year.

SUBA reached out
to 6 businesses and
only 3 had ribbon
cuttings. Two more are scheduled for the upcoming fiscal year. Along with 1 year Anniversary celebrations.

Business Resources
SUBA will work directly with lenders, business organizations, non-profit groups, businesses, and governmental agencies to provide SUBA members with information and training on financing opportunities to improve their businesses. We partnered with organizations such as the El Pajaro CDC, Negozee, Mission Community Services Corporation, Salinas Valley Chamber of Commerce, Arranque Empresial, Monterey County Workforce Development Board, and Cal Coastal SBDC as well as others to make certain we offer members opportunities for training and gathering of information. In addition, we have begun conversations with TMC Community Capital to look at another partnership. We offered business workshops and webinars for small business growth and development through these partnerships. Over 179 of our SUBA businesses took advantage of these free workshops and webinars this past year. However, we had a total of 248 participants join us for the various webinars and workshops. Within the budget includes the allocation of time utilized by staff in this program. Our goals for the upcoming Fiscal Year for our members under Business Resources is as follows:

Goal 1B- Provide 4 classes/webinars for SUBA members on Business Development for 2023/2024 Fiscal Year.

We provided 4 workshops/classes/webinars for SUBA members on Business Development for Fiscal Year 2024/2025.

Names of Workshops/Webinars-Nombres de Talleres

1. Bases para tu Plan de Negocio, el Manejo de
Tu Credito (2 times)

2. Plan de Mercadeo y Redes Sociales, Impuesto
de Negocio (2 times)

Goal 2B- Provide 20 workshops/webinars regarding business related topics Managing Credit*, Social Media Marketing*, Insurance Needs for Business*, Retirement Plans for Owners*, Growing your Net Worth, Utilizing Google for Marketing*, Utilizing Google Ads, Fundamentals of Commercial Leases*, Employee vs. Contractor*, Using Radio and Television Ads* and Exit Strategy for Business Owners*. *They will be repeated in Spanish.

We provided 15 workshops/classes/webinars for SUBA
members on Business Development for Fiscal Year
2023/2024. Below is the list of webinars and workshops.

1. Insurance Needs for small Businesses-
Necesidades de Seguro para Negocios Pequeños (2 times)

2. Planes de Retiro para Negocios-Retirement Plans for
Small Businesses (2 times)

3. Unlock your Mortgage Options and Grow your Net Worth (2 times)

4. Contracting Opportunities with the local and state
government (Oportunidades de Contratación con
gobiernos locales y estatales) (2 times)

5. Licensed to Build: Workshop for Aspiring
La Ciberseguridad y Tu Pequena Empresa)

6. Commerical Leases Basics for Small Businesses Fundamentos de arrendamiento commercial para duen@ de pequenos negocios)

7. Life Insurance and Retirement (2 times)

8. Microloans for Small Businesses/ Microcréditos para Pequeños Negocios (2 times)

9. What does El Pajaro CDC offer small businesses?/ ¿Qué ofrece El Pájaro CDC a los pequeñas negocios?

Goal 3B- Provide 300 one-on-one meetings with SUBA members in 23/24 Fiscal Year.

We provided 279 one-on-one meetings with businesses in their place of business.

We provided 104 one-on one meetings in our SUBA office. We provided 1,729 visits to businesses doing outreach.

The range of one-on-ones included permits, questions on permits and issues of violations along grant opportunities, workshops, invitations to events and clean- ups and assistance with business licenses, planning issues, financial information and ADA issues, etc.

Safety
SUBA collaborated with City Code Enforcement, the County Health Department, and local businesses to improve monitoring of health and safety codes in our area. We organized three community meetings with business owners and Salinas Police, and addressed safety issues and code violations with Code Enforcement. Staff time for this program is included in the budget. Additionally, we held three meetings focused on unpermitted vendors and small business concerns. Our Safety goals for the next Fiscal Year are:

Goal 1C- Provide 4 Public Safety
Meetings throughout the SUBA area. To
discuss issues and ongoing problems
that arise due to burglaries, theft,
unhoused issues, garbage, abandoned
vehicles, and/or other similar issues.

Three public safety meetings were held
during the past fiscal year. Topics
discussed included safety concerns,
burglary, theft, homelessness, garbage,
and other related matters.

Goal 2C- Coordinate and Develop business area safety plans with our businesses and the Salinas Police Department as necessary. These safety plans pertain to suggestions and or comments given to businesses from the police department regarding signage in windows, lighting in and out of the business, video surveillance suggestions and business layout in regard to visibility and safety.

We provided safety suggestions to small businesses during meetings and offered tailored advice in one-on-one sessions. When necessary, we collaborated with the

police department to address concerns. Most recommendations focused on lighting, window signage, and installing and positioning surveillance cameras.

Goal 3C- Monitor and Contact City, County and State agencies regarding Health, Safety and Sanitary Issues.

SUBA collaborated with New Republic Services to address garbage-related concerns in the SUBA area. The organization also coordinated with environmental health to manage health issues related to restaurants, parking lots, and unpermitted food sales. SUBA contacted CalWater regarding street parking matters, the blocking of business parking areas, and provided timeline updates for businesses about construction on E. Alisal Street. Two meetings were held with small businesses to discuss unpermitted vendors and other concerns raised by business owners. SUBA partnered with code enforcement to address health concerns, the presence of unpermitted vendors, and various violations.

Engagement with the police department was undertaken to respond to noise complaints, trash accumulation, abandoned vehicles, and public nuisance reports.

In addition, SUBA utilized the City of Salinas’ Salinas Connect App to report and manage parking, graffiti, and trash issues.

Beautification & Cleaning
SUBA has implemented projects focused on
improving the business corridor within the SUBA
area. Efforts have continued to monitor and
develop plans for more consistent clean-up
activities, working with city staff to identify
further opportunities for maintaining cleanliness
in the business area. The objective for the
coming year is to schedule regular clean-ups to
align with those organized by the City of Salinas
through the Alisal Vibrancy Plan and Clean
California Grant project. The previous year's
Ambassador Program did not proceed as initially
intended, and former ambassadors are now
being engaged to continue work independently
on a bi-weekly schedule. Currently,
approximately nine small businesses participate
as ambassadors in their respective areas, though program management and incentive distribution have presented challenges. The budget accounts for staff time dedicated to this program. The following goals are set for Beautification and Clean-Ups in the 24/25 Fiscal Year:

Goal 1D- Further develop an Ambassador Cleanup program and a Beautification Program in Coordination with the City of Salinas that aligns with the Alisal Vibrancy Plan. This plan will include meeting with the Ambassadors 4 times per year and having monthly small

cleanups in the immediate area where the ambassadors have their business. Train all the ambassadors to utilize the Salinas Connect App for them to utilize the app to inform the city of graffiti, excess garbage and abandoned vehicles.

Work with the city community development department to do outreach and implement phases of the Alisal Vibrancy Plan including grants, public art and beautification projects

SUBA collaborated with the City of Salinas on the Alisal Vibrancy Plan this fiscal year, but progress was limited. New garbage cans and some artwork were added; other initiatives remain in planning. The City's façade improvement program for the Alisal is still pending after more than three years, with businesses waiting for its release.

Goal 2D Schedule and Implement 4 Cleanups throughout the SUBA BIA for 23/24 Fiscal

SUBA organized two large cleanups, while the other planned events were either cancelled or carried out on a smaller scale by our ambassadors in their respective areas or near their affiliated businesses.

ANNUAL SUMMARY

SUBA promoted small business participation in training and educational programs offered by various partners. Last year, approximately 214 businesses attended classes and webinars from SUBA, BBB, and Arranque Empresial, as well as in-person workshops. Additional partners such as Monterey County Works, El Pajaro CDC, Central Coast SBDC, Mission Community Services Corporation, and others also provided opportunities, though some participation was not tracked.

SUBA assisted directly with filling out applications, gathering needed financial information, preparing financial information, scanning needed information, and aiding throughout the grant and loan application and loan applications.

Many of our businesses received
information from SUBA, both
directly and indirectly, regarding
various available grants and
loans. They either applied
themselves and contacted SUBA
with any questions or engaged
their Accountants to complete
the application process on their
behalf.

SUBA acknowledges that the
local government has addressed

needs over the past two years and expresses hope for continued support as economic conditions evolve.

With ongoing inflation and increased online competition, continued grants and loans may help businesses remain operational. Despite these efforts, many businesses have reported a slow spring, with some indicating they may need to close. There are currently more vacancies in the SUBA area than in previous years, and the last fiscal year saw an increase in business closures. Anecdotal reports suggest that many businesses experienced a 30% decrease in sales during the first two quarters of this year.

SUBA held meetings with City Staff throughout the year to address code enforcement, unpermitted vendors, trash, unhoused concerns, catering trucks, and crime. We will continue supporting these efforts.

SUBA collaborated with a range of agencies and non-profit organizations, including Building Healthy Communities, the Center for Community Advocacy, Blue Zones, SVMH, Salinas Valley Chamber of Commerce, Negozee, Arranque Empresial, Mission Community Services Corporation, Central Coast SBDC, El Pajaro CDC, Monterey County Business Council, and the Monterey County Visitors and Convention Bureau (SEE Monterey), among others, to address community barriers affecting the quality of life for East Salinas residents, particularly local businesses. SUBA remains committed to ongoing partnership with these organizations to further enhance the quality of life for both businesses and residents in East Salinas.

SUBA conducted two safety meetings with business members and the Salinas Police Department to discuss ongoing concerns related to crime, safety, homelessness, and code enforcement. During these sessions, SUBA welcomed the new Chief of Police, who was introduced to the Board of Directors and provided a brief presentation on the Salinas Police Department. Additionally, SUBA and local businesses utilized the Salinas Connect App to report issues such as graffiti, litter, and parking violations.

SUBA and its Board contributed to the organization and promotion of special events, including Holiday Sales, Valentine’s Day Sales, and Small Business Saturday. Over the past year, we collaborated with the Salinas Valley Chamber of Commerce to foster greater synergy among small businesses. We hosted a joint mixer that saw participation from numerous businesses. We anticipate the continuation and growth of this partnership in the coming years.

SUBA facilitated the processing of Temporary Land Use Permits for business owners in good standing throughout the year, representing an estimated value of $4,600 in benefits to SUBA members.

Additionally, SUBA contributed partially to fees paid directly to the City of Salinas during the Mother’s Day Sale. We extend our gratitude to the Community Development Department for their support. These permits covered Valentine's Day, Mother's Day, and several other occasions during the year.

SUBA actively promoted Small Shop Saturday and holiday sales within the SUBA area. A total of 29 businesses participated directly in Small Shop Saturday, with numerous additional businesses involved indirectly. SUBA employed various promotional channels, including radio, social media, and live video broadcasts, to publicize the event.

SUBA has further advanced its branding campaign to enhance visibility and name recognition both within and beyond the SUBA District through targeted social media initiatives. The organization will continue to refine and develop this branding strategy moving forward.

SUBA sent out twenty-two newsletter updates through emails for an approximate total of 8,600. In addition, there were direct emails sent to businesses related to information related to workshops, meetings and events and community updates. Lastly, there were 7 robocalls made throughout the year related to workshops, events, meetings or special promotions.

SUBA provided information to members regarding the City's graffiti abatement program, code enforcement services, and concerns related to unpermitted vendors that were brought to SUBA's attention. SUBA collaborated with the City of Salinas Finance Department and Community Development Department to update the BIA roster and support the maintenance of the City's assessment procedures.

These tasks involved several challenges, as the information provided sometimes does not correspond with existing businesses or fails to include newly established businesses in the BIA.

SUBA held several events promoting the SUBA area this year including the following:

6th Annual Small Business Saturday, where over 29 businesses participated in. The event drew hundreds of people to the Alisal. The event was promoted through radio and through social media.

We organized and participated in several ribbon cuttings during the year, including events at A Jewelers and Goodwill of the Central Coast. In addition, SUBA hosted multiple mixers, such as the one held at Salinas Pizza, and collaborated with the Salinas Valley Chamber of Commerce to promote and coordinate these activities. We anticipate conducting at least five ribbon cuttings in the coming year.

Challenges

SUBA 's primary challenge continues to be accomplishing a work plan with few staff, trying to encompass all that is needed within the SUBA Area with declining financial resources. This is further exasperated by the end of the contract with the Monterey County Business Council. Due to federal cuts and a change in funding for MCBC this past year, our financial partnership has ended. With the amount of assessments collected at only 40% we are unable to continue as we have in the past and are having to cut all personnel costs. This means the work plan must be reduced and in turn that could mean the organization looks to change its model. It could also mean that the organization dissolves.

The method of assessment collection has been an important factor for SUBA. Five years ago, the City of Salinas shifted responsibility for collecting assessments to SUBA. Since that transition, both the amounts and percentages collected have declined. In Fiscal Year 2018-2019, SUBA collected $70,819 in assessments; in 2019/2020, $67,440 was collected. For Fiscal Year 2023/2024, the amount collected was $42,448, and in the most recent fiscal year, it was $40,550. These figures indicate a downward trend in assessments collected. The organization is evaluating future operational options, including possible dissolution and reorganization as a PBID, due to challenges posed by the absence of the MCBC contract

and the City of Salinas' previous role in assessment collection. Under current conditions, SUBA reports that it will not be able to meet all financial obligations in its current format and may consider restructuring as a new entity.

Despite gaining trust from many SUBA Members, payment issues persist.

Low collection rate of assessments is a large challenge.

Approximately 60 percent of assessment amounts were uncollected for FY 24/25.

Of the 420 businesses billed for a total assessment value of $100,441- $59,891 was not collected.

Of those businesses, none were sent to collections.

In total SUBA collected approximately 40% of the businesses total assessed value. SUBA received a total of $40,550 in assessments for the year. In other words, $1,898 less than last year received.

(We will continue sending out billing in the hopes we collect a bit more assessments.)

Grant and Fundraising opportunities for SUBA have not transpired.

SUBA will continue to focus on looking for grant opportunities for SUBA and focus on creating donation and sponsorship opportunities for the organization.

There were multiple challenges, including supporting businesses in maintaining operations. Factors such as inflation and shifts in the economy, along with increased consumer activity on platforms like Amazon and other online retailers, have contributed to changes affecting small businesses. Over the past year, billing was conducted four times for all SUBA businesses. Moving forward, the plan is to continue billing quarterly, delivering invoices both electronically and in paper format.

2025/2026 Goals and Objectives

Marketing and Promotions

Goal 1A-Provide 40 Social Media Posts on business spotlights

Goal 2A-Provide 18 Social Media Posts for the SUBA area promoting shopping campaigns and/or events

Goal 3A-Provide 12 interviews on radio or television promoting or regarding the SUBA area and/or businesses pertaining to services provided by SUBA and/or partners and informing members of upcoming webinars/workshops and events

Goal 4A-Provide 3 ribbon cutting ceremonies or mixers for SUBA businesses

We will monitor the metrics of engagement and add those metrics to next years report in our updated goals and objectives for 2025/2026.

Business Resources

Goal 1B-Provide 3 classes/workshops/webinars to SUBA Members on Business Basics Business Plan, Financial Plan, Marketing Plan, Taxes for Businesses

Goal 2B-Provide 5 workshops/webinars regarding business related topics Managing Credit*, Social Media Marketing*, Insurance Needs for Business*, Retirement Plans for Owners*, Growing your Net Worth, Utilizing Google for Marketing*, Utilizing Google Ads, Fundamentals of Commercial Leases*, Employee vs. Contractor*, Using Radio and Television Ads* and Exit Strategy for Business Owners*. *They will be repeated in Spanish.

Goal 3B-Provide 100 one-on-one meetings/consultations with SUBA members

We will monitor the metrics of outreach, engagement and attendance and add those metrics to next year’s report in our updated goals and objectives for 2025/2026.

Safety

Goal 1C-Provide 1 Public Safety Meetings throughout the SUBA area. To discuss issues and ongoing problems that arise due to burglaries, theft, unhoused issues, garbage, abandoned vehicles, and/or other similar issues.

Goal 2C-Coordinate and Develop business area safety plans individually with our businesses and the Salinas Police Department as necessary. These safety plans pertain to suggestions and or comments given to businesses from the police department regarding signage in windows, lighting in and out of the business, video surveillance suggestions and business layout in regard to visibility and safety.

Goal 3C-Monitor and Contact City, County and State agencies regarding Health, Safety and Sanitary Issues

We will include a brief report of the public safety meetings and outline the safety plans put together for businesses in next year’s report of Fiscal Year 2025/2026.

Beautification and Cleaning

Goal 1D-Further explore an Ambassador Cleanup program and a Beautification Program in coordination with the City of Salinas that aligns with the Alisal Vibrancy Plan. This plan will include meeting with the Ambassadors 2 times per year and having monthly small cleanups in the immediate area where the ambassadors have their business rather than bi-weekly cleanups on their own.

Training all the ambassadors to utilize the Salinas Connect App for them to utilize the app to inform the city of graffiti, excess garbage and abandoned vehicles.

SUBA will help in the promotion of City grants and projects related to beautification, including the Alisal Facade Improvement Program, adding more receptacles and artwork for the Alisal.

Goal 2D-Schedule and Implement 1 large scale cleanups throughout the SUBA Area

We will document the number of garbage bags collected through the Ambassador program and organized cleanups, as well as provide detailed records of volunteer participation. This will enable us to establish clear metrics and facilitate future measurement and evaluation.

As illustrated above, SUBA is reducing the goals and objectives in the number of services being provided to account for the loss of services to continue services at a lower level due to the low volume of assessments collected within the BIA. Sadly, directly due to the adjustment in the manner of how collections were made by the City Council that took place 5 years ago, and with the loss of our sole contract we are not able to continue to provide the same level of service as we once did.

LICENSE_NO COMPANY MAIL_ADDRESS1 MAIL_CITY MAIL_STATE MAIL_ZIP SUBA Ass Fee 31203 $10 Store 1031 Harding St Salinas CA 93906 174.00$ 19817 1 2 3 Laundromat 1248 San Angelo Dr Salinas CA 93901 261.00$ 57018 127 Market 1000 N Sanborn Rd Salinas CA 93905 435.00$ 32646 7-Eleven Store 2233-17327e P.O Box 219088 Dallas TX 75221-9088 750.00$ 67096 A C Mobile Repair 610 Roosevelt St Salinas CA 93905 87.00$ FINBL24-00624 A Jewelers Inc. 168 Williams Rd Salinas CA 93905 43.50$ 55752 A. Cordova Insurance Services, Inc. PO Box 2057 Salinas CA 93902 182.70$ 08302 A-1 Sweeping Service 281 Commission St #A Salinas CA 93901 174.00$ 42752 Abarrote's Challo 607 East Alisal Street Suite A Salinas CA 93905 21.75$ 37174 Adriana S. Garcia P.O. Box 9389 Salinas CA 93915 43.50$ 67736 Alan's Auto Sales, Inc 365 E Market St Salinas CA 93901 435.00$ 33288 Alexis Flore's & Regalo's 629 East Alisal Street Salinas CA 93905 21.75$ 29219 Alicia's Boutique 649 E. Alisal Street Salinas CA 93905 261.00$ 34578 Alisal 99 Cent Bargain 626 East Alisal Street Suite F Salinas CA 93905 43.50$ 65642 Alisal Commercial Partners LL 1205 Freedom Blvd Ste 2 Watsonville CA 95076 130.50$ 65889 Alisal Laundry Fluff & Fold 605 E Alisal St Salinas CA 93905 21.75$ 69708 Alisal Pharmacy 37323 fremont Blvd Fremont CA 94536 750.00$ 15301 Alisal Pizzeria Restaurant 706 E. Alisal St Salinas CA 93905 130.50$ 34904 All Purpose Mini Storage P.O. Box 657 Watsonville CA 95077 87.00$ 67436 Aloha Inn 235 Kern St Salinas CA 93905 87.00$
57865 Alta Tax & Immigration Services 911 E Alisal St Salinas CA 93905 174.00$ 45746 Alteraciones Mary 860 E Alisal St #B Salinas CA 93905 95.70$ 61899 Alvarez Automotive 109 E Bolivar St Salinas CA 93906 95.70$ 25267 AMD Recycling 324 Kings Street Salinas CA 93905 750.00$ 33434 America Tax Service 635 E Alisal St Salinas CA 93905 200.10$ 25612 America Travel 635 East Alisal Street Salinas CA 93905 174.00$ 49898 American Medical Response 2511 Garden Rd SUite # A140 Monterey CA 93940 435.00$ 67591 Amigas Para Siempre 1019 Garner St Salinas CA 93905 87.00$ 14893 Anaya Produce 1011 Eagle Drive Salinas CA 93905 87.00$ 31219 Andrews Blueprint 269 Griffin St Salinas CA 93901 113.10$ 60883 Andrews Blueprint, Inc 11 La Miranda Ct Salinas CA 93901 21.75$ 63964 Andy's Store 716 Elkington Ave Apt #2 Salinas CA 93905 21.75$ 52803 Angel De La Salud 114 Oregon St Salinas CA 93905 87.00$ 71403 Aqualight Company 454 E Alisal St #A Salinas CA 93905 113.10$ 50500 Aqualight Water Stores Inc 454 E Alisal St #B Salinas CA 93905 21.75$ 70815 Arco Iris del Sabor 515 E Alisal St #B Salinas CA 93905 43.50$ 53400 Armando Jumpers 529 Crescent Way Salinas CA 93906 87.00$ 24161 Armando's Machine Shop, Inc. 55 Tarp Cir Salinas CA 93901 113.10$ 66985 Athena Medical Group, Inc PO Box 10627 Salinas CA 93912 191.40$ 08457 Autozone #5512 P.O. Box 2198 Memphis TN 38101-9842 750.00$ FINBL24-00092 Ayy Me Encanta 727 E ALISAL ST SALINAS CA 93905 21.75$ 55835 Azteca Cosmos Insurance Income Tax Svc 1184 Monroe St, Suite 1 Salinas CA 93906 174.00$ 65491 B&G Auto Repair & Transmission 17519 Castroville Blvd Salinas CA 93907 174.00$ 40491 Bar Rio 1537 N First St Salinas CA 93906 87.00$
FINBL23-00230 Barajas Fresh Fruits 707 Stanford Ave SALINAS CA 93901 21.75$ FINBL19-00550 Berenice Ice Cream 1131 E. Laurel Dr. Salinas CA 93905 87.00$ 69382 Best Water 20 N Sanborn Rd #G Salinas CA 93905 21.75$ 48230 Best Western Salinas Monterey 175 Kern St Salinas CA 93905 217.50$ 37128 Best Western Salinas Valley Inn & Suit 187 Kern Street Salinas CA 93905 217.50$ 69585 Betty Beauty Style 8 Newlyn St Salinas CA 93906 87.00$ 65944 Bill and Wanda Martin 1122 Montecito Cir Salinas CA 93901 21.75$ 65894 Bill Winchester 520 Crocker Ave Pacific Grove CA 93950 87.00$ FINBL24-00174 BKM Healthy Foods 611 E ALISAL ST SALINAS CA 93905 87.00$ 61774 Boost Mobile 10717 Country Meadows Rd Salinas CA 93907 87.00$ 39935 Botanica Misxteca P.O. Box 3663 Salinas CA 93912 87.00$ 44451 Boys and Girls Clothes 676 Saint Edwards Salinas CA 93905 87.00$ 68983 Burger King # 6813 25 E Airway Blvd Livermore CA 94551 750.00$ 05916 Burke's Upholstery 266 East Market Street Salinas CA 93901 87.00$ 63959 CA Distribution Resources LLC 4352 SE 95th St Ocala Fl 34480 21.75$ 69732 Cabanas Lawn Service 603 LA MESA DR SALINAS CA 93901 87.00$ 51524 Calderon Brothers Tires LLC 115 Ivy St Salinas CA 93905 669.90$ 48810 Calderon Tire & General Auto Repair In 642 E Market St #A Salinas CA 93905 574.20$ 67028 Calidad Market Y Carneceria 949 N Sanborn Rd Salinas CA 93905 348.00$ 11785 California Check Cashing Stores, LLC 2312 E Trinity Mills Rd, Ste 100 Carrollton TX 75006 435.00$ 23507 California Del Sur Commissary 467 E. Market Street #D Salinas CA 93905 43.50$ 36692 Cardenas #205 2501 E Guasti Rd Ontario CA 91761 750.00$ 59700 Carla Mattress Company 285 E Alisal St #E Salinas CA 93905 21.75$ 60853 Carlos Auto Repair 301 E Laurel Dr Salinas CA 93906 95.70$ 18613 Carmelitas Kid's P.O. Box 10254 Salinas CA 93912 130.50$ 42665 Casa De Lavanderia 730 East Alisal Street Suite A Salinas CA 93905 750.00$ 23900 Casa De Telas 626 E Alisal St Salinas CA 93905 43.50$ 12921 Casablanca Travel Agency 915 East Alisal Street Salinas CA 93905 174.00$ 69463 Catracha's Fashion 727 E Alisal St Salinas CA 93905 43.50$ 11185 Central Coast System 312 Kings St Salinas CA 93905 113.10$ 17629 Centro De La Gente P.O. Box 4485 Salinas CA 93912 87.00$ 54763 Centro Jewelry 1546 Military Ave Seaside CA 93955 174.00$ 61288 Cha Cha Real Estate Holdings, LLC P.O. Box 361945 Milpitas CA 95035 261.00$ 25405 Changing Faces Beauty Studio 813 East Alisal Street Salinas CA 93905 43.50$ 33574 Chicali Hot Dogs 211 Kings Street #2 Salinas CA 93905 87.00$ 67219 China House 848 E Alisal St Salinas CA 93905 696.00$ 45416 Clasico Shoes 3070 Sunset Ave #13 Marina CA 93933 130.50$ 06958 Classic Weddings 650 Alisal St. Salinas CA 93905 130.50$ 66895 Claudia Hevia 901 S Main St Salinas CA 93901 87.00$ 33220 Clinica De Salud Del Valle De Salinas 55 Plaza Circle Suite A Salinas CA 93901 50.00$ 18500 Clothing & Things Thrift Shop 32 Hebert Rd Salinas CA 93906 130.50$ 68799 CM Tax & Services 930 N Sanborn Rd Salinas CA 93905 87.00$ 02928 Comfort Control 263 E Market Street Salinas CA 93901 130.50$ 52782 Comida Economica 113 Primrose Dr Salinas CA 93906 87.00$ 58773 Conectate Media 915 E Alisal St Salinas CA 93905 87.00$ 67116 Corona Market 695 E Alisal St Salinas CA 93905 522.00$ FINBL24-00284 Cose Felici 3119 Marina Dr. Apt 17 Marina Ca 93933 21.75$ 40472 Costa Central Medical Group 323 N Sanborn Rd #E Salinas CA 93905 191.40$ 34551 Country Motors, Inc. 435 East Alisal Street Salinas CA 93905 750.00$ 63947 Creaciones de Angel 119 Orange Dr Salinas CA 93901 130.50$ 35542 Cuevas Tire I I, Inc. 601 East Alisal Street Salinas CA 93905 87.00$ 59111 Cuevas Tires Inc 619 N Sanborn Rd #A Salinas CA 93905 156.60$ 65788 Culturas Hidalgo & Oaxaca 473 E Market St Salinas CA 93905 609.00$ 62138 Curiosidades Saga 795 Mimbrera Way Salinas CA 93905 87.00$ 23785 Curiosidades Saga 623 E Alisal Street Salinas CA 93905 21.75$ 00763 CVS Pharmacy #9349 One CVS Dr MC1160 Woonsocket RI 02895 750.00$ 17712 Cyndi's Lace & Craft 732 East Market Street Suite F Salinas CA 93905 21.75$ 55708 Cynthia Hair Salon 674 Saint Augustine Dr Salinas CA 93905 43.50$ 54876 Daisy's Hair Salon 625 E Alisal St Salinas CA 93905 43.50$ 60902 Dale's Glass Shop 275 Griffin St Salinas CA 93901 121.80$ 53314 Damian's Jewelry 60 N Sanborn Rd Salinas CA 93905 87.00$ 20178 Decoraciones Bertha 238 E. Wilson St Rialto CA 92376 43.50$ 69066 Deli-Cafe 3 Hermanos, Inc. 545 E Alisal St #E Salinas CA 93905 750.00$ 60954 Dem Enterprises LLC 548 E Alisal St #C/A Salinas CA 93905 87.00$ 67194 Diana Beauty Salon 908 E Market St Salinas CA 93905 43.50$ 18678 Discoteca La Mexicana Plus 38 Oregon St Salinas CA 93905 87.00$ 67012 Discoteca Rincon de los Exitos 1942 Oxford Court Salinas CA 93906 21.75$ 67452 Divas Closett 630 E MARKET ST A SALINAS CA 93905 21.75$ 47259 Domino's Pizza 1101 N Main St Salinas CA 93906 750.00$ 20385 Don Roberto Jewelers #46 205 Avenida Fabricante San Clemente CA 92672 750.00$ 32462 Dulceria El Guero 834 N Sanborn Rd #B Salinas CA 93905 750.00$ 64902 Dulceria Vargas, LLC 60 N Sanborn Rd #a Salinas CA 93905 750.00$ 69001 E & R Investments, LLC 19652 Woodcrest Dr Salinas CA 93908 43.50$ 54831 E.Z. Autosales 739 E Alisal St Salinas CA 93905 47.85$ 33579 East Market Shell 458 East Market Street Salinas CA 93905 750.00$ 18685 East Market Store 701 E Market St Salinas CA 93905 261.00$ 57311 East Salinas Family Center 995 N Madeira Ave Salinas CA 93905 50.00$ 18841 Eduardos Department Store 1033 E Alisal St Suite C Salinas CA 93905 130.50$ 35327 El Compita Mariscos 1478 Tecopa Way Salinas CA 93905 87.00$ 67580 El Faro Tax Service Y Envios Inc 607 E Alisal St #b Salinas CA 93905 95.70$ 40577 El Kiosko #2 1759 Great Island St Salinas CA 93905 87.00$ 61830 El Kora Restaurant 153 Griffin St Salinas CA 93905 435.00$ 68836 El Milagro #2 1118 E Alisal St Salinas CA 93905 130.50$ 18573 El Nuevo Rancho Grande 720 E Alisal St Salinas CA 93905 522.00$ 45598 El Pollo Dorado 701 E Alisal St Salinas CA 93905 261.00$ 46122 El Pollo Loco #3592 400 Santa Clara St Ste 206 Vallejo CA 94590 750.00$ 45272 El Potocino Western Wear 372 Mendocino Dr Salinas CA 93906 130.50$ 65026 El Primo 503 James St #A Salinas CA 93905 21.75$
61442 El Primo Express Inc 345 Williams Rd #101 Salinas CA 93905 95.70$ 17883 El Primo Western Wear 645 E Alisal St Salinas CA 93905 750.00$ 69818 El Primo Western Wear 489 Arcadia Way Salinas CA 93906 750.00$ 48754 El Sol Motors Inc 16250 Blackie Rd Salinas CA 93907 348.00$ 50947 El Taco Rico de Salinas 753 Meyers Ct Salinas CA 93905 87.00$ 21400 El Tapatio Snack Bar 856 Mescal Ct Salinas CA 93905 87.00$ 55577 El Volcan # 1 1729 First Ave Salinas CA 93905 87.00$ 32547 El Zacatecano Restaurant, Inc. 655 E. Alisal St Salinas CA 93905 750.00$ 29016 Electronics Plus 646 E. Alisal St Salinas CA 93905 522.00$ 46307 Elenas Day Care 770 Elton Pl Salinas CA 93905 174.00$ 67202 Emilio & Rosa Rossi 750 Sierra Madre Salinas CA 93901 43.50$ 54716 Encanto Beauty Salon 622 E Market St Salinas CA 93905 43.50$ 63455 ES Car Wash #1 186 4th St Greenfield CA 93927 261.00$ 63457 ES Car Wash #2 186 4th St Greenfield CA 93927 174.00$ 63456 ES Car Wash #3 186 4th St Greenfield CA 93927 130.50$ FINBL24-00013 Espinosa Men's Wear 1769 Yosemite Cir Salinas CA 93906 87.00$ 18068 Espinoza's Furniture 607 E MARKET ST SALINAS CA 93905 87.00$ 43934 Estetica Unisex Lety's 7 S Wood St Salinas CA 93905 43.50$ 56812 European Auto 276 E Market St Salinas CA 93901 287.10$ 65793 Eva's Ice Cream 740 Saratoga Dr Salinas CA 93906 87.00$ 53204 Everyone's Harvest 31 Upper Ragsdale Dr. Ste 4 Monterey CA 93940 50.00$ 57851 Exclusive Auto Body 518 E Alisal St Salinas CA 93905 95.70$ 14566 Exitos Latinos 1116 E Alisal Salinas CA 93905 522.00$ FINBL25-00331 Exitos Latinos Entreprises, Inc. 19652 Woodcrest Drive Salinas CA 93908 43.50$ 57546 E-Z Wash and Dry 975 N Sanborn Rd #A Salinas CA 93905 174.00$ 01409 F. Tofield Auto Repair 231 Kern St Salinas CA 93901 52.20$ 70683 Factory 2 U 15001 S Figueroa Ave Gardena CA 90248 750.00$ 33643 Family Awareness Consulting 1116 Jean Avenue Salinas CA 93905 174.00$ 49938 Family Outlet 10717 Country Meadows Rd Salinas CA 93907 87.00$ 28803 Fans' Soccer Shop 624 Roosevelt St Salinas CA 93905 43.50$ 56832 Ferguson Waterworks 251 Little Falls Drive Wilmington DE 19808 287.10$ 21555 Fernando Auto Repair 268 E Alisal Street Salinas CA 93901 87.00$ 23368 Fernando Luque D.C. 622 E Alisal St #1 Salinas CA 93905 208.80$ 56914 Fiesta Auto Insurance 554 E Alisal St Salinas CA 93905 191.40$ 26070 Foods, Co. #769 P.O. Box 54143 Los Angeles CA 90054 750.00$ 18857 Fountain Of Beauty/Fuente De B 776 Saratoga Dr Salinas CA 93906 43.50$ 61184 Franci & Mike Weaver 52 Corral De Tierra Salinas CA 93908 43.50$ 67244 Francisca C Leal 849 N Madeira Ave Salinas CA 93905 21.75$ 45508 Franks Video Production 530 Roosevelt St #E Salinas CA 93905 21.75$ 39778 Fruteria Quiroz 76 Saint Brendan Way Salinas CA 93906 21.75$ 69674 Frutti Rana 630 E Market St #b Salinas CA 93905 43.50$ 67951 G L Liquor 606 E Alisal St Salinas CA 93905 609.00$ 08122 Gabilan TV Sales 470 Market Suite #A Salinas CA 93905 87.00$ 67387 Galaxy Party Supply 426 E Alisal St Salinas CA 93905 87.00$ 63166 Gali & Co 545 E Alisal St #a Salinas CA 93905 348.00$ 18229 Galvez Tires & Wheels 678 E. Market St Salinas CA 93905 87.00$ 53531 Garcia Chiropractic Clinic 909 E Alisal St Salinas CA 93905 200.10$ 61467 Gary R Waller 23 Via Contenta Carmel Valley CA 93924 87.00$ 25712 Gate's Decorating Supplies 602 East Alisal Street Salinas CA 93905 21.75$ 15621 Gemini T-Shirt 626 E. Alisal St Salinas CA 93905 43.50$ 68966 General Auto Repair 1839 Redondo Way Salinas CA 93906 174.00$ 61861 Gifts & Etc Outlet 43 S Sanborn Rd #B Salinas CA 93905 130.50$ 65712 GIS Plumbing Inc 30 Bardin Cir Salinas CA 93905 348.00$ 16118 Gladys Immigracion Y Servicios 509 East Alisal Street Salinas CA 93905 130.50$ 65676 Gomez Adan & Maria Lucrecia 710 E Market St Salinas CA 93905 87.00$ 29584 Gomez Auto Repair 710 East Market Street Salinas CA 93905 139.20$ 64949 Goodwill Central Coast 1566 Moffett St Salinas CA 93905-3342 50.00$ 71348 Gorditas Maria Dulceria 1718 Beacon Hill Drive Salinas CA 93906 750.00$ 57582 Goyitos Auto Repair 770 N Sanborn Rd Salinas CA 93905 87.00$ 01431 Graniterock P.O. Box 50001 Watsonville CA 95077-5001 750.00$ 63967 Green Cellular Inc/Digicom Wireless 801 E Market St Salinas CA 93905 348.00$ 69854 Green Lite Auto Glass 245 Commission St Salinas CA 93901 95.70$ 64809 Griffin Wash House 1336 N Central Avenue San Jose CA 95128 435.00$ 69315 GrowGeneration 1000 West Mississippi Ave Denver CO 80223 750.00$ 18165 GTO Printing 526 E Alisal St Salinas CA 93905 174.00$ 63130 Guadalajara Bakery Central Coast 699 E Market St Salinas CA 93905 174.00$ 29500 Hair 2000 20 North Sanborn Road Suite F Salinas CA 93905 43.50$ 51324 Hair By Patricia Magallon 715 Jersey Dr Gonzales CA 93926 43.50$ 63303 Haircuts In Shape 326 E Alisal St #F Salinas CA 93901 21.75$ 65057 Haydee Beauty Salon 819 E Alisal St Salinas CA 93905 43.50$ 69194 Healey Mortuary & Crematory 369 N New York Ave Ste 300 Winter Park FL 32789 217.50$ 59773 Hector's Meat 549 E Market St Salinas CA 93905 261.00$ 60838 Heriberto Alba 1951 Chelsea Ct Salinas CA 93906 21.75$ 18317 Hernandez Produce 65 Kings Street Salinas CA 93905 87.00$ 52627 Hojas Para Medicina 2 Inc. 811 E Alisal St Salinas CA 93905 435.00$ 48860 Holiday Inn Express & Suites 195 Kern St Salinas CA 93905 261.00$ 15995 Horacios Auto Repair 704 Madeira Cr Salinas CA 93905 43.50$ 56796 Imperiouz Autobody, Inc. 297 E Market St Salinas CA 93901 87.00$ 16417 In-N-Out Burgers #99 4199 Campus Drive, 9th Floor Irvine CA 92612 750.00$ 42922 Interactive Sound & Wireless 728 East Alisal Street Salinas CA 93905 87.00$ 61484 Isabela Fashion 1427 Tecopa Way Salinas CA 93905 43.50$ 57213 Isabella's Flowers And Gifts 510 Fremont St Salinas CA 93905 21.75$ 63693 Islas Lawn Service 61 N Pearl St #B Salinas CA 93905 87.00$ 56752 Ivonne Beauty Salon 1576 Verona Ct Salinas CA 93905 43.50$ 63049 J & M Appliance Repair 86 Ragsdale Ct Salinas CA 93905 87.00$ 36826 J J's Auto Sales 349 East Market Street Salinas CA 93901 750.00$ 05636 J L Williams Janitorial Services P.O. Box 482 Salinas CA 93902 43.50$ 55870 J&N Collision 327 Commission St Salinas CA 93901 87.00$ 46406 J.J.R. Gardening Services P.O. Box 2592 Salinas CA 93902 87.00$ 48333 Jaquez Fast Food Service 433 Navajo Dr Salinas CA 93906 87.00$ 52727 Jax Pacific West Insurance 1674 Story Rd San Jose CA 95122 182.70$ 59362 Jim Russo State Farm 921 E Alisal St Salinas CA 93905 121.80$ 61188 Jim Vaninetti 4100 Dark Hollow Rd Medford OR 97501 21.75$ 26146 Joemary Am/Pm 385 East Alisal Street Salinas CA 93901 750.00$ 60963 Jorge Haro 7816 Luxor St Downey CA 90241 43.50$
67388 Jorge's Auto Detail's 63 Kings St #B Salinas CA 93905 104.40$ 13974 Jose Luis Sandoval Attorney At Law 428 Tudor Way Salinas CA 93906 174.00$ 32714 Jose's Auto Repair 382 E Market St #B Salinas CA 93901 95.70$ 35510 Joyeria y Botanica 1775 Massachusetts Drive Salinas CA 93905 348.00$ 59646 Juan M. Covarrubias Shoes 545 E Alisal St #G Salinas CA 93905 21.75$ 48505 Jugeria La Tropical 822 E Alisal St Salinas CA 93905 130.50$ 32734 July's Underwear 1515 Del Monte Ave Salinas CA 93905 43.50$ 38511 JV Construction 749 Elton Pl Salinas CA 93905 87.00$ 47241 K & K Laundromat 1921 Lavender Way Gilroy CA 95020 130.50$ 01623 Kentucky Fried Chicken #152 P.O. Box 572530 Salt Lake City UT 84123 750.00$ 67894 Kids R 545 E Alisal St #g Salinas CA 93905 130.50$ 05180 Kimmies Cork N Bottle 210 North Sanborn Road Salinas CA 93905 750.00$ 59229 Kol Electric Inc P.O. Box 910 Gonzales CA 93926 382.80$ 30947 KTGE 548 E Alisal St A Salinas CA 93905 200.10$
38526 La Barata Tienda 836 East Alisal Street Salinas CA 93905 609.00$ 69675 La Chilindrina Ice Cream Truck 18478 Northridge Dr Salinas CA 93906 87.00$ 68895 La Esperanza Market 490 E Market St Salinas CA 93905 522.00$ 56792 La Malucada 5 Randall Rd Salinas CA 93907 87.00$
59983 La Michoacana Commisary 2185 N Main St #4 Salinas CA 93906 21.75$ 67224 LA MICHOACANA ES ARTESANAL RP 1504 Cougar Dr Salinas CA 93905 87.00$ 71362 La Michoacana Love Inc PO Box 1588 Salinas CA 93902 435.00$ 65537 La Movida 1537 N First St Salinas CA 93906 130.50$ 67958 La Oaxaquena 1145 Hamilton Ave #B Seaside CA 93955 21.75$ 48644 La Paz Dental Care 559 E Alisal St Salinas CA 93905 208.80$ 67949 La Perla Mexican Food #2 PO Box 1775 Salinas CA 93901 87.00$ 15276 La Plaza Bakery 20 N Sanborn Rd Suite #A Salinas CA 93905 750.00$ 69415 La Plazita Market 617 N Sanborn Rd Salinas CA 93905 696.00$ 32796 La Popular #3 719 East St #A Salinas CA 93905 87.00$ 32793 La Popular c/o Rogelio Monroy Vargas 902 E MARKET ST SALINAS CA 93905 21.75$ 20396 La Princesa #1 516 E Alisal St Salinas CA 93905 750.00$ 50309 Laboratory Corporation Of America 231 Maple Ave Burlington NC 27215 95.70$ 38762 L'Amour Shoppe 1157 Sweetwater Road Spring Valley CA 91977 750.00$ 61437 Larry Mak 200 Estate Dr San Bruno CA 94066 87.00$ FINBL21-00548 Las Palmas Furniture Inc 335 E Alisal St Salinas CA 93901 750.00$ 31055 Latino Beauty Salon 548 E Alisal St #D Salinas CA 93905 52.20$ 63843 Laurel Heights Shell 346 Greenpark Way San Jose CA 95136 750.00$ 66860 LDR Properties T.I.C. 131 Abby Ct Santa Cruz CA 95062 87.00$ 01050 Leal Bakery 805 E Alisal St Salinas CA 93905 261.00$ 62017 Lemus Insurance PO Box 11152 Salinas CA 93915 95.70$ 52707 Leon Motors 615 E Market St Salinas CA 93905 750.00$ FINBL22-00324 Lianna Avila, Marriage & Family 1522 Constitution Blvd #409 Salinas CA 93905 174.00$ 18724 Libreria Alicias 856 Mescal Ct Salinas CA 93905 130.50$ 61345 Lim Family Enterprises LLC 31240 Pudding Creek Rd Fort Bragg CA 95437 43.50$ 25380 Little Caesar Pizza #5055 2125 Woodward Ave Detroit MI 48201 750.00$ 16233 Lopez Photography Productions 823 East Alisal Street Salinas CA 93905 87.00$ 29332 Los Altos Restaurant #2 107 Kern Street Salinas CA 93905 750.00$ 09784 Los Arcos Del Alisal 52 Oregon St Salinas CA 93905 261.00$ 68790 Los Dos Potrillos Restaurant 88 Webb Rd Watsonville CA 95076 750.00$ FINBL23-00745 Los Primos Market 825 E ALISAL ST SALINAS CA 93905 130.50$ 71108 Lucy's Auto Registration 212 Merced St #1 Salinas CA 93901 174.00$ 70662 M & M Cars 10 Sherwood Dr #21 Salinas CA 93901 95.70$ 33130 M & R Auto Repair 424 East Alisal Street Salinas CA 93905 95.70$ 14148 Maas Accessories 922 North Sanborn Road Salinas CA 93905 174.00$ 70971 Magda's Flowers 1178 Cobblestone St Salinas CA 93905 130.50$ 50917 Maria A Silva 58 Mirtle Ct Salinas CA 93905 52.20$ 32452 Maria's Used Stuff 822 N Sanborn Rd Salinas CA 93905 43.50$ 40675 Maribel Hair Studio 600 East Alisal Street Salinas CA 93905 43.50$ 29707 Marion's Place, Inc. 487 East Market Street Salinas CA 93905 348.00$ 68991 Mari's Closet 626 E Alisal St Salinas CA 93905 43.50$ 28948 Mariscos Costa Azul 658 E Market St Salinas CA 93905 152.25$ 22142 Maritza Market 549 E Market St Salinas CA 93905 609.00$ 61036 Market Auto Service 288 E Market St Salinas CA 93901 43.50$ 50937 Marquez Handyman Services 841 Meadow Dr Salinas CA 93905 43.50$ 64786 Mary's El Rinconsito Mex Art 626 E Alisal St Salinas CA 93905 43.50$ 61508 Maya Productions 470 E Market St #B Salinas CA 93905 104.40$ 16176 Mayra's Bridal Shop 621 East Alisal Street Salinas CA 93905 130.50$ 59774 McDonald's #36262 P.O. Box 10130 Salinas CA 93912 750.00$ 42795 McDonalds #690 P.O. Box 10130 Salinas CA 93912 750.00$ 33192 Medina's Bridal Shop 30295 Chualar Canyon Road Chualar CA 93925 43.50$ 65055 Mercadito Alegria 727 E Alisal St Salinas CA 93905 87.00$ 71005 Mercado Mi Rancho 495 E Market St Salinas CA 93905 750.00$ 48857 Mesina Key 63 N Madeira Ave #B Salinas CA 93905 87.00$ 37468 Mexico Lindo Deli 443 Victoria Avenue Salinas CA 93906 87.00$ 64841 Mi Fiesta Smoke Shop 1033 E Alisal St #G Salinas CA 93905 348.00$ 68015 Midway Engine Rebuilders & Auto 482 E Market St Salinas CA 93905 95.70$ 65536 Miguel Gutierrez PO Box 335 Soledad CA 93960 130.50$ 65674 Mina's Cleaning Services 516 Roosevelt St #A Salinas CA 93905 87.00$ 69799 Miranda Envios Inc 528 E Alisal St Salinas CA 93905 104.40$ 59765 Miranda Envios Inc 913 E Alisal St Salinas CA 93905 104.40$ 55189 Miranda Envios Inc 648 E Alisal St Salinas CA 93905 95.70$ 54705 Miranda Envios Inc 920 N Sanborn Rd Salinas CA 93905 104.40$ 61999 Mireya's Vanity Beauty Salon 824 E Alisal St Salinas CA 93905 21.75$ 10781 Mirsa's 288 E Market St Salinas CA 93901 87.00$
00975 Mission Linen Supply, Inc. P.0. Box 1299 Santa Barbara CA 93102-1299 87.00$ 25336 Mj Collection 626 East Alisal Street #D-3 Salinas CA 93905 120.06$ 45650 Mon's Auto Repair 227 Commission St Salinas CA 93901 95.70$ 61599 Monterey County Soccer League 443 E Alisal St Ste A1 Salinas CA 93905 50.00$ FINBL23-00349 Morales Auto/Regalos Toys 626 E ALISAL ST SALINAS CA 93905 43.50$ 67434 Morales Gardening PO Box 3815 Salinas CA 93912 87.00$ 16223 Morelia's .99 Store and Up 669 East Market Street Salinas CA 93905 57.42$ FINBL25-00377 Mori 500 Rutherford Ave Suite 105 Boston MA 02129 208.80$ 57836 Motel 6 #1370 P.O. Box 8000 Monsey NY 10952 95.70$ 10806 Mountain Mike's Pizza 315 E Alisal St Salinas CA 93901 750.00$ 57812 Mundo Saludable 1138 Acosta ST Apt 5 Salinas CA 93905 87.00$ 59839 Nancy Moreno Insurance Services P.O. Box 9528 Salinas CA 93915 452.40$ 67422 Nancy's Shoewear 1942 Oxford Ct Salinas CA 93906 21.75$ 17925 Nature Sunshine Health Center #2 626 E Alisal St C-1 Salinas CA 93905 87.00$ 21634 Navarro Income Tax and Service 14 S Wood Street Salinas CA 93905 234.90$ 48836 Navarros Furniture 440 E Alisal St Salinas CA 93905 130.50$ 62085 Navarro's Wedding Decorations 440 E Alisal St Salinas CA 93905 87.00$ 63945 Neighborhood Market & Taqueria 505 E Market St Salinas CA 93905 783.00$ 63123 Nelida M Torres 716 E Alisal St Salinas CA 93906 43.50$ 15977 Nelly's Beauty Salon 322 Addington Lane Salinas CA 93907 43.50$ 23559 New Image Hair Salon 972 Acosta Plaza Salinas CA 93905 69.60$ 50317 Nicky Fruteria 1729 Cambrian Dr Salinas CA 93906 43.50$ 57090 Nikys 578 Los Coches Ave Salinas CA 93906 174.00$ 65051 Novedades Rubi 1151 Alma Ave Salinas CA 93905 21.75$ 15409 Novia's Rossy's 645 Alisal St Suite #E Salinas CA 93905 82.65$ 49932 Number 1 Sox 1116 Woodside Cir Salinas CA 93901 87.00$ 60894 Nutricion Y Vitalidad 1305 Firehaven Salinas CA 93905 21.75$ 37677 Obhet Auto Repair Shop 205 Maryal Drive Salinas CA 93906 95.70$ 25732 One Stop Auto Care 324 East Alisal Street Salinas CA 93905 156.60$ 65398 One Stop Market 980 Acosta Plaza Salinas CA 93905 696.00$ 12729 O'Reilly Auto Parts #2702 P.O. Box 9167 Springfield MO 65801 750.00$ 18886 Ortiz Asuntos Migratorios, Inc 10 Sherwood Dr #27 Salinas CA 93901 104.40$ 61287 Pablo Espinoza 607 E Market St Salinas CA 93905 87.00$ 06627 Pacific Coast Battery Service, Inc. 311 East Alisal Street Salinas CA 93901-4302 750.00$ 71091 Paleta Payaso 255 E Bolivar St # 246 Salinas CA 93906 87.00$ 63580 Paleteria Mathew 730 Mae Ave #A Salinas CA 93905 87.00$ 69085 Paleteria Rosi 639 Fremont St #A Salinas CA 93905 87.00$ 57618 Paleteria Vanilla 730 Mae Ave #A Salinas CA 93905 87.00$ 35019 Paleteria Wendy #1 1014 Pacific Avenue Salinas CA 93905 87.00$ 45316 Panaderia Ortega 916 N Sanborn Rd Salinas CA 93905 174.00$ 64748 Panaderia Pasteleria Deli La Estrella 613 N Sanborn Rd Salinas CA 93905 130.50$ 30827 Panaderia Tres Hermanos 545 E Alisal St #D Salinas CA 93905 750.00$ 02781 Patania Masonry Inc 1176 Loyola Dr Salinas CA 93901 696.00$ 60984 Patricia Mendez 75 San Benancio Rd Salinas CA 93908 43.50$ 09687 Paul Faro Automotive 56 Echo Valley Rd Salinas CA 93907 348.00$ 60986 Peninsula Petroleum LLC 7615 Zionzville Road Indianapolis IN 46268 130.50$ 60874 Peter C Miller 10295 Hawley Rd El Cajon CA 92021 43.50$ 42471 Pina's Crafts 613 East Alisal Street Salinas CA 93905 21.75$ 71342 Platt Electric Supply 251 Little Falls Dr Wilmington DE 19808 287.10$ 71341 Platt Electric Supply PO Box 9085 Addison TX 75001 750.00$ 70958 Prestige Roofing LLC 44 N Pearl St Salinas CA 93905 156.60$ 30742 Prime Time Nutrition 19315 East San Jose Avenue La Puente CA 91748 750.00$ 23329 Prime Time Nutrition 19315 E. San Jose Ave La Puente CA 91748 750.00$ 67786 Primo Auto Sales 714 E Market St Salinas CA 93905 750.00$ 69357 Primo Wireless 10 S Filice St #4 Salinas CA 93905 130.50$ 31327 Productos Mexicanos 372 Mendocino Dr Salinas CA 93906 130.50$ 59804 Pronto Dollars 559 E Alisal St Suite #108 Salinas CA 93905 191.40$ 48155 Pronto Income Tax Service 600 E Market St #100 Salinas CA 93905 182.70$ 47354 Quality Inn Salinas 144 Kern St Salinas CA 93905 217.50$ 22033 R D H Enterprises 1405 Branham Lane San Jose CA 95118 750.00$ 50024 Radio Lazer P.O. Box 6940 Oxnard CA 93031 182.70$ 15222 Rainbow Wash & Dry 273 River Rd Salinas CA 93908 87.00$ 31412 Ramirez Auto Service 222 Ivy St Salinas CA 93901 87.00$ 61848 Ramirez Ice Cream Truck 1130 D Street Salinas CA 93905 87.00$ 18582 Ramirez Insurance Services 600 E Market St Suite 105 Salinas CA 93905 104.40$ 61439 Raygoza Lorenzo Et Al 2975 E Clinton Ave Fresno CA 93703 43.50$ 61511 Realty Income Properties 16, LLC 11995 El Camino Real San Diego CA 92130 261.00$ 52945 Redbox Automated Retail LLC 1 Tower Lane Suite 900 Villa Park IL 60181 21.75$ 51207 Redbox Automated Retail LLC 1 Tower Lane Ste 900 Villa Park IL 60181 21.75$ 55856 Redbox Automated Retail, LLC 1 Tower Lane Ste 900 Villa Park IL 60181 21.75$ 66909 Regalos Happy Face 467 E Market St Salinas CA 93905 21.75$ 61382 Rex Motel 305 Kern St Salinas CA 93905 130.50$
46014 Ria Money Transfer 7000 Village Dr # 200 Buena Park CA 90621 548.10$ 70801 Right Way Auto 212 MERCED ST 6 Salinas CA 93901 478.50$ 63007 Rock Boxing Gym 1277 Nogal Dr #D Salinas CA 93905 130.50$ 53248 Rossi Bros Tire And Auto Service 81 N Sanborn Rd Salinas CA 93905 750.00$ 51632 Rubio's Auto Care 241 E Market St Salinas CA 93901 191.40$ 25466 Ruperta G. Garcia Diaz 1017A Mohar Street Salinas CA 93905 43.50$ 44018 Ruth Ruiz Tax & Services 24 N Sanborn Rd Salinas CA 93905 174.00$ 69841 Saba's Car Upholstery Mobile 526 Fremont St #C Salinas CA 93905 87.00$ 69495 Salinas Auto Transmission 249 Griffin St Salinas CA 93901 95.70$ 61171 Salinas Cellular 549 E Market St Salinas CA 93905 21.75$ 59082 Salinas Collision Center 382 E Market St #A Salinas CA 93901 87.00$ 48219 Salinas Discount Plus 648 E Alisal St Salinas CA 93905 174.00$ 63440 Salinas Furniture Gallery 801 E Alisal St Salinas CA 93905 750.00$ 25673 Salinas Furniture Gallery 656 East Alisal Street Salinas CA 93905 750.00$ 65613 Salinas Insurance Agency LLC 443 E Alisal St Ste B4 Salinas CA 93905 174.00$ 45991 Salinas Market Inc 315 Riesling Way Salinas CA 93906 750.00$ 55100 Salinas Meat 229 N Sanborn Rd Salinas CA 93905 121.80$ 21426 Salinas Pawn 431 E Market St Salinas CA 93905 435.00$ 63522 Salinas Pizza 988 Acosta Plaza Salinas CA 93905 87.00$ 32899 Salinas Premium Pure Water 335 Kings St Salinas CA 93905 87.00$ 34699 Salinas Radiator Shop 231 East Market Street Salinas CA 93901 104.40$ 65563 Salinas Smog, Inc 297 E Market St Salinas CA 93905 113.10$ 67157 Salinas Valley Pro Squad 1134 S MAIN ST Salinas CA 93901 522.00$ 68813 Sanborn & Market Gas 1000 E Market St Salinas CA 93905 348.00$ 28620 Sanborn Launderland 706 Nacional Ct Salinas CA 93901 348.00$ 62135 Sanborn Medical Center 1034 Baywood Place Salinas CA 93901 130.50$ FINBL22-00699 Sanborn Pharmacy, Inc 323 N Sanborn Rd Salinas CA 93905 750.00$ 69260 Scarbrough Prop. Maint. 285 E Market St #2 Salinas CA 93901 87.00$ 55734 Seon Esther 626 E Alisal St Salinas CA 93905 87.00$ 55507 Seraph Rates 15570 Weather Rock Way Salinas CA 93908 182.70$ 55248 Sergio Studio's Beauty Salon 45 S Sanborn Rd #C Salinas CA 93905 43.50$ 67660 Sierra's Cleaning Po Box 9751 Salinas CA 93915 95.70$ 08633 Smart & Final #431 PO Box 512377 Los Angeles CA 90051-0377 750.00$ 59762 Smart Computer Repair 1851 Cherokee Dr Apt #2 Salinas CA 93906 95.70$ 64893 Smart Komm Inc. 4720 W Jennifer Ave #107 Fresno CA 93722 261.00$ 67835 Sobadora Janeth 530 Roosevelt St #e Salinas CA 93905 87.00$ 13470 Sowder Tax Service 24 North Sanborn Road Salinas CA 93905 21.75$ 33035 Stage 1 Auto Care And Tire 231 Commission St Salinas CA 93901 87.00$ FINBL23-00269 Starbucks Coffee #66772 PO Box 34442 STAX2 Seattle WA 98124 750.00$ 42582 Subway #5062 1114 E Alisal St Salinas CA 93905 174.00$ FINBL24-00421 Subway #5062 1876 Stratford Court Salinas Ca 93905 435.00$ 70978 Super 8 - Salinas 251 El Camino Real San Carlos CA 94070 217.50$ 54856 Taco Bell #25510 7888 Wren Ave Gilroy CA 95020 957.00$ 57280 Tacos El Jaliscience II 441 N Sanborn Rd Salinas CA 93905 130.50$ FINBL25-00221 Tacos El Jalisciense 6601 Lopez Way Gilroy CA 95020 87.00$ 50865 Tacos Pacheco #2 1250 Old Stage Rd Salinas CA 93908 87.00$ 67600 Tacos Pacheco #3 1250 Old Stage Rd Salinas CA 93908 87.00$ 61609 Tala V. Gredinberg DDS, Inc 323 N Sanborn Rd #F Salinas CA 93905 278.40$ 36979 Taqueria & Dulceria El Guero 834 North Sanborn Road Suite A Salinas CA 93905 87.00$ 40667 Taqueria El Grullense 976 Acosta Plaza Salinas CA 93905 348.00$ 70719 Taqueria el Tarasco 910 N Sanborn Rd Salinas CA 93905 261.00$ 37592 Taqueria Mi Ranchito 45 South Sanborn Road Suite D Salinas CA 93905 750.00$ 02206 Target Pest Control 235 Griffin St Salinas CA 93901 522.00$ 20066 Tax Refunds & Services PO Box 3505 Salinas CA 93912-3505 348.00$ 55961 Teamsters Local Union No.890 207 N Sanborn Rd Salinas CA 93905 50.00$ 60896 Thiel E Fritz 13615 Paseo Terrano Salinas CA 93908 87.00$ 04284 Thomassin Used Cars 275 E Market St Salinas CA 93901 174.00$ 03664 Tiffany's Body Shop 248 Merced Street Salinas CA 93901 174.00$ 62081 Tina's Beauty Salon 1611 Piazza Dr Salinas CA 93905 21.75$ 36737 Tire & Wheel World 328 E. Alisal St Salinas CA 93901 750.00$ 30582 Tolo's Body Shop 18 Murphy Street Salinas CA 93901 95.70$ 30726 Tommy's Glass Service, Inc. 21 South Pearl Street Salinas CA 93905 435.00$ 42868 Top Bluejean 654 East Alisal Street Salinas CA 93905 348.00$ 49904 Torres Auto Service 369 E Market St #G Salinas CA 93905 87.00$ 55838 Total Knockout Sounds, Inc 326 E Alisal St #G Salinas CA 93901 87.00$ 18599 Toys And Cosmetics 1733 Lennox Way Salinas CA 93906 261.00$ 67723 T-Peino Beauty Salon & Nails 1252 Trazado Ave Salinas CA 93906 43.50$ 23865 Transmission Center P.O. Box 9013 Salinas CA 93915 95.70$ 15671 Tres Marias #2 5 Randall Rd Salinas CA 93907 87.00$ 03785 Tri County Fire Protection Inc. 260 Rianda Circle, Suite A Salinas CA 93901 78.30$ 13888 Trini's Hair Shop 1280 Los Olivos Drive Salinas CA 93901 95.70$ 63956 Trujillo Tax Service & Bookkeeping 901 E Alisal St Salinas CA 93905 243.60$ 26374 United Rentals (North America), Inc 251 Little Falls Dr Wilmington DE 19808 750.00$ 45964 USA Station 19100 Ridgewood Pkwy San Antonio TX 78259 750.00$ 56915 Valley Auto Insurance Brokers 58 Ragsdale Ct Salinas CA 93905 182.70$ 63488 Variedades Y Regalos Anai 1269 Decunha Ct Salinas CA 93906 261.00$ 20062 Villaltas Furniture 668 E Market St Salinas CA 93905 147.90$ 43734 Viva Lingerie 626 East Alisal Street #B5 Salinas CA 93905 43.50$ 61072 Vizza Investments, LLC 409 Washington St Ste 201 Monterey CA 93940 87.00$ 18733 Walgreens #03446 P.O. Box 901 Deerfield IL 60015-4600 750.00$ 25475 Watermill Express 958 Goodwin Dr Ripon CA 95366 95.70$ 21660 West Coast Commercial Inc 260 Rianda Circle Suite #D Salinas CA 93901 217.50$ 45547 West Market Auto Body & Detailing 1356 Palmera Ave Salinas CA 93905 65.25$ 59424 Western Exterminator Company 1125 Berkshire Blvd Ste #150 Reading PA 19610 95.70$ 46016 Western Motel 6 S Wood St Salinas CA 93905 130.50$ 50779 Wienerschnitzel 1200 W Yosemite Ave #193 Manteca CA 95337 957.00$ 51335 WINCHELL'S DONUT HOUSE FRANCHISE9866-A 969 E Alisal St Salinas CA 93905 609.00$ 59710 Wireless Tech Shop 454 E Alisal St #A Salinas CA 93905 87.00$ 69408 Works Auto Body 10 JD Alvarado Cir Salinas CA 93901 87.00$ 61032 York F. Gin Family Partnership 556 Thomson Ln Copperopolis CA 95228 43.50$ 06500 Young's Market 660 East Market Street Salinas CA 93905 261.00$ FINBL23-00826 Zapateria Y Mas G&A 1769 Yosemite Cir Salinas CA 93906 87.00$ 53843 Zavala's Transmission 369 E Market St #H Salinas CA 93901 174.00$ 04544 Zig Auto Parts Distributing, Inc 276 E Market St Salinas CA 93901 113.10$ 109,078.08$
Proposed Budget 2025/2026
Salinas United Business Association
Proposed Budget 2025/2026
Income 202S/2026 Budget
SUBA BIO Assessments & Associated Membership {projected) Contracts
Grants
Donations
Events (Sponsorships)
Current Balance from FY 2024/2025
Total Income
Expense
Operations
Accounting
Conferences/Staff Development
Insurance
Permits
Dues and Subscriptions
Office Furniture & Equipment
Office Supplies
Postage
Telephone & Internet
Rent
Staff
Miscellaneous
Beautification and landscaping
Marketing & Promotion
Safety
Business Resources
Total Expenses
Estimated Fund Balance
$ 100,440·
s o••
$ 5,000
$ 7,500
$ 5,000
S 14,092
$132,032
$132,032
$ 3,250
$ 500
$ 2,550
$ 1,000
$ 300
S 500
S 2,250
$ 1,750
$ 3,900
$ 12,000
$ 32,000
$ 1,000
$ 1,000
$ 4,000
S 800
$ 5 000
�
$ 60,232
•Projected Estimated Figure from the City of Salinas Finance Department of 2024/2025-Have not received updated numbers they have been requHted arld are being adjusted. ••contract has ended whh Monterey County Business Councll

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-310, Version: 1
HUD Consolidated Annual Performance and Evaluation Report for FY 2024-25 Approve a Resolution affirming the Fiscal Year 2024-25 Consolidated Annual Performance and Evaluation Report (CAPER) and authorizing submittal to the United States Department of Housing and Urban Development (HUD).

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: COMMUNITY DEVELOPMENT
FROM: LISA BRINTON, DIRECTOR

THROUGH: ORLANDO REYES, ASSISTANT DIRECTOR

BY: VINCENT MONTGOMERY, PLANNING MANAGER

FRANCISCO BRAMBILA, MANAGEMENT ANALYST

ERIC SOTELO, COMMUNITY DEVELOPMENT ANALYST

TITLE: HUD CONSOLIDATED ANNUAL PERFORMANCE AND
EVALUATION REPORT FOR FY 2024-25

RECOMMENDED MOTION:

It is recommended that City Council approve a resolution affirming the Fiscal Year 202 4-25 Consolidated Annual Performance and Evaluation Report (CAPER) and authorizing submittal to the United States Department of Housing and Urban Development (HUD).

EXECUTIVE SUMMARY:

The CAPER provides a comprehensive summary of expenditures, activities, and accomplishments for each of the City’s HUD programs for the past fiscal year. This document also serves as a mechanism and opportunity for public evaluation regarding the City’s progress in carrying out goals and objectives a s stated in its FY 2020 -24 Consolidated Plan (Con Plan) and FY 202 4-25 Annual Action Plan (AAP).

BACKGROUND:

The City of Salinas (City), as a designated entitlement jurisdiction, is a direct funding recipient of the United States Department of Housing a nd Urban Development’s (HUD) Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), HOME American Rescue Plan (HOME-ARP), and Emergency Solutions Grants (ESG) Programs. As a requirement of the continued receipt of entitlement funding, the City must compile and submit a Consolidated Annual Performance and Evaluation Report (CAPER) to the United States Department of Housing and Urban Development (HUD) each year. This CAPER would be the last Report for the FY 2020- 24 Con Plan period. The CAPER is due to HUD no later than ninety (90) days after the end of the City’s FY 2024-25. This year, the CAPER is due to HUD no later than September 28, 2025.

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The CAPER is a one -year evaluative summary document that describes all eligible projects, programs and activities funded through CDBG, CDBG-CV, HOME, HOME-ARP, and ESG funds and their relationship to the City’s housing, homelessness, and community development priorities and needs. In accordance with the City’s adopted Citizen Participation Plan (CPP), HUD requires a minimum fifteen (15) day public comment period for the CAPER. In compliance with this mandate, public notices in English and Spanish were published in The Monterey Herald on or before September 8, 2025. Along with the public notices, the draft CAPER was also made available to the public on the City’s website; at City libraries, City Hall, and the Community Development Department (Permit Center); and by request through mail or email. Additionally, the public notices and draft CAPER were emailed to the Community Development Department’s Housing Distribution List.

The public comment period for the FY 2024 -25 CAPER began on or before September 8, 2 025, and will conclude with the scheduled City Council hearing on September 23, 2025. The City Council public hearing provides an additional opportunity for the public to provide City Council feedback regarding the draft CAPER and provide input on community development needs within the City. The City’s final CAPER submission to HUD will include a summary of all public comments received during the public comment period.

Entitlement Funding & Program Income (PI)
The City is an entitlement jurisdiction for CDBG, CDBG-CV, HOME, HOME -ARP, and ESG programs. HUD provides annual grants on a formula basis to cities and counties entitled to develop viable urban communities by providing decent housing and a suitable living environment and by expanding economic opportunities, principally for low - and moderate-income persons. The City also utilizes program income (PI) related to its various entitlement funds to further fund certain eligible activities on an annual basis. PI is the gross income received by the City that is generated from the use of CDBG and HOME funds. The table below represents total entitlement funding and PI available for FY 2024-25 for CDBG, CDBG-CV, HOME, HOME-ARP, and ESG.

Funding Source Entitlement
Amount
Program
Income
Total Funding
Available
Total
Expenditures
CDBG $7,326,348* $37,225 $7,363,573 $2,997,946
CDBG-CV $226,432** $0 $226,432 $214,977
HOME $3,872,688* $173,970 $4,046,658 $233,199
HOME-ARP $2,918,774** $0 $2,918,774 $180,239
ESG $397,942* $0 $397,942 $373,026
Total $14,742,184 $211,195 $14,953,379 $3,999,387 *Includes remaining funds from prior years.
**Remaining funds from one time allocation.

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Community Development Block Grant (CDBG)
CDBG Entitlement Funds may be used to provide decent housing, support suitable living conditions, and expand economic opportunities, principally for low - and moderate -income persons. CDBG funds may be used for activities which include, but are not limited to:

 Acquisition of real property
 Relocation and demolition
 Rehabilitation of residential and non-residential structures  Construction of public facilities and improvements, such as water and sewer facilities, streets, neighborhood centers, and the conversion of school buildings for eligible purposes
 Public services (up to 15% of CDBG allocation)
 Activities relating to energy conservation and renewable energy resources  Provision of assistance to profit -motivated businesses to carry out economic development and job creation/retention activities
In FY 2024-25, the City utilized CDBG funds to support public services, and public facilities. The following tables show the activities performed with CDBG Entitlement and CDBG-CV funds and their accomplishments for FY 2024-25.

CDBG Program
Agency Activity Name Funding
Category
Available
Funding Expenditures Outcome
City of Salinas
Program
Administration
(20% Grant & PI)
Administration $436,170 $428,108 N/A
City of Salinas
Chinatown
Neighborhood
Improvements -
Soft Costs
Public
Facility $369,507 $1,675 N/A
Alisal Union
School District
Buckhorn Early
Childhood
Development
Center
Public
Facility $141,526 $141,526
One
Public Facility
Completed
ECHO
Fair Housing and
Tenant/Landlord
Services
Public Service $86,663 $86,663 180
Households
City of Salinas Hebbron Family
Center
Public
Facility $2,015,734 $1,683,414
One
Public Facility
Ongoing
City of Salinas
Natividad Creek
and Closter Park
Restroom
Renovation
Public
Facility $131,993 $22,176
One
Public Facility
Ongoing
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City of Salinas
Salinas Outreach
and Response Team
(SORT)
Public Service $388,170 $355,217 46
Households
City of Salinas
Sherwood
Recreation Center –
Phase 4
Public
Facility $3,664,360 $279,167
One
Public Facility
Ongoing

CDBG-CV Program
Agency Activity Name Funding
Category
Available
Funding Expenditures Outcome
City of Salinas
Program
Administration
(20% of Grant)
Administration $38,768 $34,446 N/A
City of Salinas
Housing
Information,
Referral Services
& Fair Housing
Public Service $27,664 $27,664 54
Households
City of Salinas
Economic
Development and
Technical
Assistance
Public Service $160,000 $152,867 166
Businesses

HOME Investment Partnerships Program
The HOME Investment Partnerships Program supports local housing strategies intended to increase home ownership and affordable housing opportunities for low - and very low -income households. Eligible uses of funds include tenant -based rental assistance, housing rehabilitation, assistance to homebuyers, and new housing co nstruction. HOME funding may also be used for site acquisition, site improvements, demolition, relocation, and other necessary and reasonable activities related to developing non-luxury housing.

The HOME housing development funds have not yet been allocate d to a specific development project, but the City’s does have several potential projects moving forward and intends to commit these funds as soon as an appropriate development timelines and other committed source funding is in place. The City issued a Notice of Funding Availability on June 24, 2025, which included the available HOME funds, and received five applications requesting funds for multi-family projects.

The City is evaluating all five proposed projects and will bring recommendations to the HLUC and City Council by end of October 2025.

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HOME Program
Agency Activity Name Funding
Category
Available
Funding* Expenditures Outcome
City of Salinas Program
Administration Administration $327,656 $233,199 N/A
To be committed
in the future
To be committed
in the future Housing $3,719,002 $0 TBD
* Includes funding from previous fiscal years.

HOME American Rescue Plan
The Allocation Plan for the HOME ARP was developed and submitted to HUD on March 21, 2023, and approved on May 26, 2023. In its Plan, the City recommended that 15% of its HOME- ARP allocation ($437,816.10) be used for allowable program administration and planning (AP) activities and that the remaining allocation of $2,480,957.90 (85%) be directed toward supportive service funding associated with two of three Homekey permanent supportive housing sites (Step Up on Sanborn and Step Up on Fairview) and other emerging “bed generating” projects. It is estimated that up to ninety-nine (99) Homekey units for qualifying populations could be supported with the recommended HOME-ARP AP. This recommendation is strongly supported by the robust input provided by local service providers, stakeholders, and other community organizations during the required consultation process. Expenditure of HOME ARP funds is not projected to occur until FY 2025-26.

HOME-ARP Program
Agency Activity Name Funding
Category
Available
Funding Expenditures Outcome
City of Salinas Program
Administration Administration $437,816 $180,239 N/A
TBD TBD Supportive
Services $2,480,958 $0 TBD
Emergency Solutions Grant (ESG)
The ESG programs utilize federal funds to support communities in providing street outreach, emergency shelter, rental assistance, and related services. These programs provide resources for adults and families with children experiencing or are at-risk of homelessness. The street outreach and emergency shelter program components are capped at 60% of the ESG total funding.

Additional uses of the ESG are to provide homelessness prevention assistance to households at risk of homelessness, and assistance to rapidly re-house persons experiencing homelessness. ESG funds also provide short-term or medium -term rental assistance, housing navigation and placement, and housing stability case management.

The City’s ESG allocation for FY 2024 -25 was $177,152, however the City had $220,790 of unexpended funds from prior years for a total of $397,942 of available funds for FY 2024-25. The following tables show the agency name, program funded, total number of undu plicated persons served, budgeted amount, and total FY 2024-25 expenditures.

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ESG Program
Agency Activity Name Funding
Category
Available
Funding* Expenditures Outcome
City of Salinas Program
Administration Administration $29,073 $16,923 N/A
City of Salinas SORT Public Service $231,753 $218,987 125 Persons Community
Homeless
Solutions (CHS)
Rapid Re-
Housing Public Service $137,116 $137,116 72 Persons
*Includes funding from previous fiscal years.

CEQA CONSIDERATION:

The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). Any subsequent discretionary projects resulting from this action will be assessed fo r CEQA applicability.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No.

STRATEGIC PLAN INITIATIVE:

HUD funded activities and projects are supportive of the 2025 City of Salinas Strategic Plan Goals and Strategies relative to Economic Development, Housing, Infrastructure, Youth and Seniors.

DEPARTMENTAL COORDINATION:

This agenda item originates from the City’s CDD Housing & Community Development Division with coordination and consultation of o ther City departments including the City Attorney , and Finance, Public Works, and Library and Community Services Departments.

FISCAL AND SUSTAINABILITY IMPACT:

There is no direct fiscal impact to the General Fund. HUD entitlement fund allocations are provided directly to the City by HUD and require no commitment of matching City funds.

Fund Appropriation

Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 24-25
Operating
Budget Page
Last Budget
Action (Date,
Resolution)
n/a n/a n/a n/a n/a n/a n/a
ATTACHMENTS:

Resolution – FY 2024-25 CAPER
Page | 7
FY 2024-25 CAPER – Draft
Presentation – FY 2024-25 CAPER
1 RESOLUTION NO. (N.C.S.)

A RESOLUTION OF THE SALINAS CITY COUNCIL APPROVING THE FY 2024-25

CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT AND

AUTHORIZING SUBMITTAL TO THE UNITED STATES DEPARTMENT OF

HOUSING AND URBAN DEVELOPMENT

WHEREAS, the FY 2024-25 Consolidated Annual Performance and Evaluation Report (CAPER) is an annual report describing eligible projects, programs and activities that were undertaken with United States Department of Housing and Urban Development (HUD) Community Developme nt Block Grant (CDBG) Program, CDBG CARES Act COVID -19 (CDBG-CV), Home Investment Partnerships Program (HOME), HOME American Rescue Plan (HOME-ARP), Emergency Solutions Grants (ESG) Program funds for the period of July 1, 2024 through June 30, 2025; and

WHEREAS, the FY 2024-25 CAPER summarizes the City of Salinas’ (City) progress in meeting the public service, community development, and affordable housing needs in relation to the 2020 -24 Consolidated Plan (Con Plan) and FY 2024 -25 Annual Action Plan (AAP) for activities carried out under CDBG, CDBG-CV, HOME, HOME-ARP, and ESG programs; and

WHEREAS, in accordance with 24 CFR Part 91.105, the City is required to conduct a public hearing each year to obtain citizens’ views on housing and community development needs; and

WHEREAS, HUD regulations, in accordance with the City’s adopted Citizen Participation Plan (CPP), require a minimum fifteen (15) day CAPER public comment period; and

WHEREAS, the FY 2024-25 CAPER must be submitted to HUD no later than September 28, 2025; and

WHEREAS, a notice was published in The Monterey Herald on September 7, 202 5, announcing the minimum fifteen (15) day CAPER public comment period beginning September 8, 2025 through September 23, 2025 and advised the public of an upcoming public hearing at the City Council meeting scheduled for September 23, 2025; and

WHEREAS, on September 17, 2025, the Housing and Land Use Committee received the draft CAPER and provided its recommendation to the City Council regarding affirmation of the report; and

WHEREAS, the City has determined that that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). Any subsequent discretionary projects resulting from this act ion will be assessed for CEQA applicability.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby approves the FY 202 4-25 CAPER and authorizes the submission to HUD and has accepted 2 comments on housing and community development needs in a public hearing announced for that purpose; and

BE IT FURTHER RESOLVED that the Salinas City Council hereby authorizes the City Manager or designee, for and on behalf of the City, to submit the FY 2024-25 CAPER to HUD by September 28, 2025.

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

City of Salinas
FY 2024-2025
Consolidated Annual Performance Evaluation Report
(CAPER - July 1, 2024, through June 30, 2025)

City of Salinas
Community Development Department, Housing Division
65 W. Alisal St.

Salinas, CA 93901
(831) 758-7334

CAPER i
OMB Control No: 2506-0117 (exp. 07/31/2015)
Table of Contents

CR-05 - Goals and Outcomes.................................................................................................................................... 1 CR-10 - Racial and Ethnic composition of families assisted ...................................................................................... 7 CR-15 - Resources and Investments 91.520(a) ........................................................................................................ 8 CR-20 - Affordable Housing 91.520(b) .................................................................................................................... 14 CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c)................................................ 16 CR-30 - Public Housing 91.220(h); 91.320(j) ........................................................................................................... 18 CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j) .................................................................................................... 19 CR-40 - Monitoring 91.220 and 91.230 .................................................................................................................... 23 CR-45 - CDBG 91.520(c) ......................................................................................................................................... 24 CR-50 - HOME 91.520(d) ........................................................................................................................................ 25 CR-58 – Section 3 ................................................................................................................................................... 28 CR-60 - ESG 91.520(g) (ESG Recipients only) ....................................................................................................... 30 CR-65 - Persons Assisted ....................................................................................................................................... 32 CR-70 – ESG 91.520(g) - Assistance Provided and Outcomes ............................................................................... 35 CR-75 – Expenditures ............................................................................................................................................. 36 Attachment A: Public Participation ......................................................................................................................... A-1 Attachment B: Monitoring Procedures ................................................................................................................... B-1 Attachment C: IDIS Report – PR 26 ...................................................................................................................... C-1 Attachment D: CAPER Resolution ......................................................................................................................... D-1 Attachment E: SAGE Report Overview .................................................................................................................. E-1

CAPER 1
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan. 91.520(a) This is an overview that includes major initiatives and highlights those that were proposed and executed throughout the program year. The City of Salinas (City) is designated as an entitlement community for three funding programs administered by HUD: Community Development Block Grant (CDBG); HOME Investment Partnerships; and Emergency Solutions Grants (ESG). The FY 2024-25 Consolidated Annual Performance Evaluation Report (CAPER) describes the City’s affordable housing and community development activities between July 1, 2024, through June 30, 2025. The CAPER also provides an evaluation of the City’s progress in carrying out the goals and objectives as stated in the Five-Year Consolidated Plan FY 2020–24 and the FY 2024–25 Action Plan.

Affordable Housing Multi-Famil y and Single-Family:

Housing Services Program : T he Housing Services Program , which previously p rovided Housing Rehabilitation Direct and Deferred Loans, Housing Accessibility Assistance (HAA) Grants, and Lead Based Paint (LBP) Grants, was suspended due to staffing shortage and no allocation of funds during the past few years (including FY 2024- 2025). The Program is currently being re- evaluated, and the City intends to re - instate this program in the future.

HOME American Rescue Plan: The
Allocation Plan (AP) for the HOME American Rescue Plan (ARP) was submitted to HUD for final review and approval in October of 2022. By January 2023, HUD granted its final approval and awarded a total of $ 2,918,774. The City is proposing to fund supportive services at two Home key sites. These sites will collectively create 101 affordable rental housing units to house persons experiencing homelessness. The supportive services for participants of the program will include , but are not limited to case management, housing services, counseling, transportation, financial assistance , and substance abuse treatment . It is anticipated that the financial allocation for supportive services will be sustained for a minimum duration of four year s with an estimated annual budget of $620,000 . In FY 2023 -24, there was a change in ownership in both Homekey projects and the City collaborated with the new owners to keep these projects within the intended use and purpose.

Homeless Facilities and Services: The Ci ty continued to fund homeless services and facilities using ESG funds. The following services have been provided through ESG to date:
 Salinas Outreach and Response Team (SOR T): SORT was d eveloped during FY 2021 -22, to provide outreach and engagement services to unsheltered encampments. Their outreach model includes effective engagement by actively locating, identifying, and building relationships with unsheltered residents. The SORT team provides linkage and referrals to supportive programs. A total of 232 persons were served in FY 24-25.

A total of 15 people were placed in Emergency Shelter, 8 people were placed in transitional housing, and 36 people were placed in permanent housing. Of those, a total of 125 persons were enrolled and engaged in street outreach services through ESG in FY 24-25. . In addition, the SORT team engaged 46 persons using CDBG funds
 Community Homeless Solutions:

Rapid Rehousing – Enrolled 72 persons in the rapid rehousing program, including 2 veterans. The CNC permanently housed 27 individuals.

Neighborhood Conditions: Durin g FY 2024-25, one public service program was funded with CDBG funds.  Fair Housing and Tenant/Landlord Services Program : Eden Council for Hope and Opportunity (ECHO) provides fair housing counseling and investigation and tenant/landlord counseling and conciliation regarding rental housing rights and responsibilities and the protections available regarding laws and ordinances. ECHO assisted 180 households during this fiscal year.

Public Facilities and Improvements:

CAPER 2
OMB Control No: 2506-0117 (exp. 07/31/2015)
 Hebbron Family Center Project: The Hebbron Family Center Project , located at 683 Fremont Street , is under construction and managed by the City’s Public Works and Library and Community Services Departments. The project was awarded $1,306,613 in CDBG Entitlement Funds from FY 2020-21 and FY 2021-22 CDBG program funds for the soft cost activities of the project and $100,000 for Activity Delivery. On May 16, 2023, the City Council approved the FY 2023-24 Annual Action Plan (AAP) and allocated $240,502 in CDBG program funds. Through a substantial amendment approved by City Council on December 5, 2023 to FY 2017-18, FY 2019-20, FY 2020-21, and FY 2021-22, the City allocated an additional $759,498 to the project, including $50,502 for Activity Delivery. Additionally, on December 5, 2023, the City Council also approved a substantial amendment to FY 2017-18, FY 2019-20, FY 2020-21, FY 2021-22, FY 2022-23, and FY 2023-24 to allocate an additional $600,000 in CDBG program funds. In total, the project has been allocated $3,057,115. in CDBG funds. The funds are earmarked for the soft costs of the project which include design, development, and project/construction management. In FY 2022-23, the Environmental Assessment for the project was completed and submitted to HUD in November 2022. Subsequently in December 2022, the demolition permit for the center was approved and in April of 2023, the existing Hebbron Family Center was demolished. The City amended the NEPA Environmental Assessment ( EA) for the project on September of 2023 and the City received the Authority to Use Grant Funds ( AUGF) from HUD in November of 2023. The project continued into FY 2023 -24 as a Design -Build project and the general contractor has been selected and awarded the project. Construction completion is expected by December of 2025.

 Sherwood Recreation Center Project – Phase IV: The Sherwood Recreation Center Phase IV is a retrofit project located at 920 N. Main St., Salinas, CA, on a City owned parcel. The project involves converting the former Municipal Swimming Pool Building (approximately 12,895 sq ft) into a functional recreation center focused on youth sports programs. The scope of work includes exterior improvements like hazardous material remediation, roof repairs, façade repairs, installation of new windows and doors, improved accessibility features, parking area upgrades, landscaping, and interior improvements. The City will utilize allocated CDBG program funds to finance administra tive functions, construction activities, and other contingencies arising during implementation.

Through its Fiscal Years 2021-2022, 2022-2023, 2023-2024 & 2024-2025 Annual Action Plans (AAP) the City allocated a total of $3,951,795.20 of CDBG program for preliminary design, soft costs, and construction costs of the Sherwood Recreation Center Phase IV project. Following the bid opening for the construction of the project, and updated construction cost estimates it was determined that the project had a funding shortfall of approximately $595,000. To help close the project funding gap, the City identified $550,000 in unspent CDBG funds from the Republic Café project and $45,000 from the Housing Referrals and Tenant/Landlord Services project, both previously allocated through the FY 2023-2024 Annual Action Plan.

The design process was completed and submitted to the City for plan review in July 2024. The environmental review phase of the project was completed in March 2025. Construction is expected to begin February 2026 and be completed by October 2026.

 Chinatown Neighborhood Improvements: The Chinatown Neighborhood Improvements is not a one parcel project, but instead the revitalization of an entire neighborhood as identified in the City’s Chinatown Revitalization Plan. The City’s Community Development Department manages this project. This neighborhood project received a total of $577,980 in CDBG entitlement funds towards construction activities with an additional $30,000 earmarked for A ctivity Delivery. In FY 202 2-23, City staff collaborated with the Salinas Downtown Community Board, that includes local stakeholders from the business sector, nonprofits, and neighborhood residents. Feedback from the community board indicated strong support for projects focused on infrastructure, sanitation, and beautification . In August 2022 , City staff completed an Exempt Environmental Review Record (ERR) for the soft cost activities of the project and began with the design phase of the project In FY 2023-24, the Community Development Department started collaborating with the Public Works Department to refine the project scope. This project will focus on ADA curb cuts, sidewalk repairs,

CAPER 3
OMB Control No: 2506-0117 (exp. 07/31/2015)
street repairs, and lighting improvements throughout the neighborhood. The project will be broken down into multiple phases. ERR Phase I will be completed in FY 2025 -26, and it will focus on sidewalk and ADA curb cut improvements.

 First United Methodist Church Kitchen Rehabilitation: The First United Methodist Church (FUMC) is located at 404 Lincoln Avenue. The Salinas FUMC managed the project. The project was awarded $561,182 of CDBG funds to rehabilitate its existing kitchen and bring the parking lot to ADA standards. FUMC has provided meals prepared in their kitchen and other essential services to the unhoused population. All construction activities were completed on June 10, 2024. Following the completion of all construction activities, the project was officially finalized and closed in HUD’s Integrated Disbursement and Information System (IDIS) in September 2024.

 Early Childhood Development Center (ECDC): The ECDC project is located at 1018 Buckhorn Drive. The Alisal Union School District (AUSD) managed this project and received $880,000 of CDBG funds for the construction of the project for a center that will accommodate up to 90 preschool children and employ 15 staff and faculty members. The project was completed in January 2025 and had a grand opening ceremony on February 3, 2025. The facility will be fully occupied and operational at the beginning of the next school year in August 2025.

 Natividad Creek and Closter Park Restroom Rehabilitation Projects: Initially this project was going to include two parks, the Natividad Creek Park and the C loster Park, however due to budget constraints and cost, City staff determined to advance only one project, the Natividad Creek Park Restroom Rehabilitation.

This project is located at 1395 Nogal Drive. The City’s Community Development Department is managing this project in collaboration with the Public Works and the Library and Community Services Departments . The rehabilitation activities of this project included ADA upgrades inside and outside the restroom as well as new ADA parking stalls. The City awarded $442,070 in CDBG Entitlement funds through its FY 2019-20 AAP. In FY 2022-23, City staff released two Request for Proposals (RFP), in December 2022 and April 2023, but was unable to award contract. After the two unsuccessful RPFs, staff directly requested proposals from contractors and awarded the construction contract to HA Construction on June 20, 2023. During FY2023-24, City staff approved change orders 1 -5 & 7 -13 in the amount of $78,674.96. Mobilization and construction activities began following the authorized Notice to Proceed issued on November 20, 2023. Due to underperformance, HA Construction was removed from the project. Th e City released a new RFP and selected a David Construction as the new contractor on the project. As of the end of FY 20 24-25, construction progress is at 74% with a projected completion of late December 2025.

 The Republic Cafe: The Republic Café is a two-story building with approximately 6,490 square feet of usable space, currently in poor condition due to fire damage and decades of deferred maintenance. Origina lly constructed in 1942, it is the only structure in Chinatown listed on the National Register of Historic Places (July 2011). In the FY 23-24 AAP, the project was allocated $500,000 in CDBG funding. However, it has faced several setbacks, particularly related to the acquisition. The project was undergoing court proceedings to allow the owners and the City to close escrow. In August 2023, the Environmental Review Record ( ERR) for soft costs and emergency repairs was completed. However, because the City did not yet have site control, the Environmental Assessment (EA) was placed on hold. Court proceedings and public notices regarding the sale of the property provided an opportunity for any parties to contest the transaction. An evidentiary hearing was held on July 2, 2024, after which the court issued a Quiet Title to the City of Salinas. Unfortunately, the manner in which the Quiet Title was granted raised concerns with the title company, which declined to insure the site due to the possibility that the ruling could still be contested. As of September 2025, the City is pursuing a Substantial Amendment to the FY 2023-2024 Action Plan to de-obligate the funding for this project in order to close the funding gap for Phase IV of the Sherwood Recreation Center . As the project approaches the construction phase, the City plans to allocate funding from future grant sources, including the Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), Housing Successor

CAPER 4
OMB Control No: 2506-0117 (exp. 07/31/2015)
Agency (HSA), Local Housing Trust Fund, and Permanent Local Housing Allocation (PLHA). A dditionally, funding will be pursued from the California Department of Housing and Community Development (HCD), and other sources to support the museum’s construction. As a result, shifting these funds as proposed will not impact this project. To keep the community informed, public meetings will be held throughout the project’s development, with regular updates provided at the monthly Downtown Community Board meetings.

CDBG-CV
The City received $1,190,782 as CDBG -CV1 funds and $1,209,375 in CDBG-CV3 funds, for a total of $2,400,157 in CDBG-CV funds through a Substantial Amendment to the FY 2019- 20 AAP. The City continued to expend the CV funds over the FY 2024-25 period. Specifically, the following activities were underway:
 City of Salinas Housing Information and Referral Services: The City of Salinas has been providing housing information, education, and referral services to Salinas residents through the Emergency Rental Assistance Program (ERAP), created in response to the COVID-19 Pandemic. As of end of October 2024, the City of Salinas has assisted 54 households with rental assistance through the United Way Community Impact Grant funds.
 The Grow Salinas Fund (GSF) / Economic Development Technical Assistance: Through this activity, the City of Salinas Business Navigator provided technical support to 166 clients, addressing 53 cases requiring in-person assistance. Businesses both within and outside the ANSRA are currently receiving help through the City's Outdoor Dining Forgivable Loan Program and other small business support efforts. Ongoing guidance has been offered to help businesses understand program requirements, navigate the application process, and prepare for future funding opportunities. In addition, the City hosted two workshops and one networking mixer covering key topics such as the City’s procurement process, marketing strategies, micro-kitchen permits, and business networking. Significant progress was done for the Alisal Façade Program, including the development of draft program guidelines, internal processes, maintenance agreements, and the creation of an online application portal. The program is set to launch in Fall 2025, with the Business Navigator managing the application process. Support was also provided to the City Manager’s Office in the development of a Financial Empowerment Center (FEC ). This included compiling a stakeholder interest list and assisting with the preparation of a Request for Proposals (RFP) to engage potential providers and funders. An FEC, will offer free, one-on-one financial counseling to residents in areas such as banking, savings growth , debt reduction and legacy planning. Collectively, these efforts aim to expand economic opportunities and improve access to essential resources for Salinas residents and businesses.

CAPER 5
OMB Control No: 2506-0117 (exp. 07/31/2015)
Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g) Categories, priority levels, funding sources and amounts, outcomes/objectives, goal outcome indicators, units of measure, targets, actual outcomes/outputs, and percentage completed for each of the grantee’s program year goals.

Table 1 - Accomplishments – Program Year & Strategic Plan to Date Goal Category Source / Amount Indicator
Unit of
Measure
Expected –
Strategic
Plan
Actual –
Strategic
Plan
Percent
Complete
Expected –
Program
Year
Actual –
Program
Year
Percent
Complete
Increased
Decent and
Affordable
Housing
Affordable
Housing
CDBG: $602,860
HOME: $4,289,745
Rental units
constructed
Household
Housing
Unit
25 17 68.00% 5 0 0%
Homeowner
Housing
Rehabilitated
Household
Housing
Unit
25 3 8.00% 0 0 NA
Enhanced
Homeless
Facilities and
Services
Homeless
CDBG: $535,800
CDBG-CV: $238,000
ESG: $670,915.00
ESG-CV: $5,788,953
HOME-ARP: $2,480,958
TBRA/Rapid Re-
Housing
Persons
Assisted 50 206 412% 15 72 480%
Public Service
activities other than
Low/Moderate
Income Housing
Benefit
Persons
Assisted 500 471 94.2% 50 171 291%
Homeless Person
Overnight Shelter
Persons
Assisted 1,300 221 17% 0 0 0.00%
Homelessness
Prevention
Persons
Assisted 25 1 4.00% 0 0 0.00%

CAPER 6
OMB Control No: 2506-0117 (exp. 07/31/2015)
Goal Category Source / Amount Indicator
Unit of
Measure
Expected –
Strategic
Plan
Actual –
Strategic
Plan
Percent
Complete
Expected –
Program
Year
Actual –
Program
Year
Percent
Complete
Enhanced
Neighborhood
Conditions
Non-
Homeless
Special
Needs
Non-Housing
Community
Development
CDBG: $7,363,573
CDBG-CV: $1,682,126
Public Facility or
Infrastructure
Activities other than
Low/Moderate
Income Housing
Benefit
Persons
Assisted 100,000 227 0.00% 50,000 77 0.00%
Public Service
activities other than
Low/Moderate
Income Housing
Benefit
Persons
Assisted 4,000 987 24.68% 350 180 51.43%
Businesses Assisted Businesses
Assisted 20 337 0.00% 0 0.00%

Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan, giving special attention to the highest priority activities identified.

During FY 2024-25, the City continued to implement the priority needs established in the City’s current FY 2020-24 Consolidated Plan. All High Priority Needs identified in the Consolidated Plan received funding from CDBG, HOME, and/or ESG programs. The City successfully achieved or remained on track to achieve the majority of its goals and objectives. Notably, it advanced the following affordable housing projects, described earlier:

 First United Methodist Church (FUMC) Kitchen R ehabilitation: On March 29, 2019, the FUMC and the City entered into a CDBG Grant Funding Agreement for a project that includes but is not limited to the reconstruction of the existing kitchen facility, lead and asbestos remediation, sewer line repairs, modification of existing bathrooms and ADA improvements. In FY 2022 -23, the City disbursed $326,814.54. The City may increase the project’s funding by less than 25% of the original project as identified in the City’s Citizens Participation Plan, without triggering a substantial amendment. In February 2024, the City and FUMC entered into Amendment No. 1 which increased the project funding $66,520, well under 25% of the original project CDBG funding.

Before the end of FY 2023- 24, all construction activities for the project were formally completed, and the building permit was finalized on June 10, 2024.

During FY 2024-2025, City staff collaborated with FUMC staff to collect all required closeout documents.

CAPER 7
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted). 91.520(a) CDBG CDBG-CV HOME* ESG HOME-
ARP
White 230 204 0 46 0
Black or African American 14 5 0 12 0
Asian 1 6 0 3 0
American Indian or Naïve American 10 2 0 3 0
Asian and White 1 1 0 1 0
Native Hawaiian or Other Pacific Islander 1 2 0 2 0
Other 46 0 0 130 0
Total 303 220 0 197 0
Hispanic 177 158 0 130 0
Non-Hispanic 126 62 0 67 0
* No HOME or HOME-ARP projects were completed in FY 2024-25

Narrative
The City provided public services to 720 r esidents and households across Salinas. This table also identifies 220 persons assisted with CDBG-CV funds. While demographic data was collected, some residents chose not to disclose their ethnicity, and therefore those responses are not reflected in the table above . Of those who did respond, approximately 65 percent of CDBG-assisted individuals identified as Hispanic.

Additionally, the table includes 197 persons assisted with ES G funds. Only those enrolled in the Homeless Management Information System (HMIS) are represented. For further details on ESG-funded homeless prevention and intervention services, please refer to the SAGE – HMIS database and accompanying report.

CAPER 8
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-15 - Resources and Investments 91.520(a)
Identify the resources made available
Source of Funds Source Resources Made
Available
Amount Expended
During Program Year
CDBG Public $7,363,572.56 $2,997,945.67
CDBG-CV Public $226,432.16 $214,977.71
HOME Public $4,046,657.95 $233,198.85
HOME-ARP Public $2,918,774.00 $180,238.94
ESG Public $397,942.24 $373,025.97
Table 2 - Resources Made Available
Narrative
The CDBG allocation for FY 2024-25 was $2,143,629 and the City also received $37,224.84 in Program Income (PI).

Combining the FY 2024-25 funds with previous unexpended program funds in the amount of $5,182,718.72 collectively totals $7,363,572.56 of available resources. Of the $2,997,945.67 CDBG funds expended during FY 202 4-25, $1,705,590.24 (56.9%) benefitted the Alisal NRSA with the rehabilitation of the Hebbron Family Center and Natividad Creek Park.

The City was allocated a total of $2,400,157 in CDBG-CV program funds in FY 2020-21. Overall, as of the end of FY 2024, the City expended $214,977.71 on public services in r esponse to COVID, along with administration of these activities. There is a total of $11,454.45 remaining to be expended by August 2026.

The City’s HOME allocation for FY 2024-25 was $729,681.15 and received a total of $173,969.04 of PI. The City had an unexpended amount of $3,143,007.76 from prior fiscal years, which collectively totals $4,046,657.95 of available HOME funding for FY 2024-25. Of the available funds, $233,198.85 were expended during this period.

The Allocation Plan (AP) for the HOME American Rescue Plan (ARP) was submitted to HUD for final review and approval in October of 2022. By May 26, 2023, HUD granted its final approval and was awarded a total of $2,918,774.

There was a total of $180,238.94 in expenditures during FY 2024-25.

The City’s ESG allocation for FY 2024-25 was $177,152, however the City had $220,790.24 of unexpended funds from prior years for a total of $397,942.24 of available funds for FY 2024-25. There were $373,025.97 of expenditures during this period.

In summary, of all funds expended during FY 202 4-25 (CDBG, CDBG -CV, ESG, and HOME ) which totals $3,999,387.14the funds benefitted the following areas:
• Alisal NRSA - $1,705,590.24 (CDBG);
• Chinatown Revitalization Area - $138,791.00 (ESG & CDBG)

Identify the geographic distribution and location of investments Target Area
Planned
Percentage of
Allocation
Actual
Percentage of
Allocation
Narrative Description
Alisal Neighborhood Revitalization
Strategy Area 1% 43% One CDBG Public Facility
Chinatown Revitalization Area 4% 3% One CDBG Public Facility

Table 3 – Identify the geographic distribution and location of investments

CAPER 9
OMB Control No: 2506-0117 (exp. 07/31/2015)
Narrative
Alisal Neighborhood Revitalization Strategy Area (NRSA) The Alisal NRSA is one of the most economically distressed neighborhoods in the City , with some of the highest concentrations of poverty and substandard living conditions . The area faces persistent challenges , including inadequate public infrastructure, high unemployment, and elevated levels of violent crime. Within the Alisal NRSA, 23% of all households live in poverty, significantly higher than the Citywide rate of 14%.

For the FY 2024-2025 Action Plan, the City did not allocate new funds specifically designated for the Alisal NRSA.

However, residents will benefit from services provided by the City’s Outreach and Response Team. Additionally, projects funded in prior years such as the Hebbron Family Center and Natividad Creek Park Restroom Rehabilitation are located within the Alisal NRSA. A third initiative, the Early Childhood Development Center , while not physically situated in the Alisal NRSA, serves children residing in the Alisal NRSA.

Chinatown Slum and Blight Designation
On May 16, 2019, Kimberly Nash, the Director of the Community Planning and Development Division, accepted the Chinatown Slum and Blight Designation Report. With the designation of Chinatown as a Slum and Blight Area, the City has a greater opportunity to revitalize it. Chinatown is at the heart of Salinas and it’s an integral part of the City’s rich history. Established by Chinese merchants on Soledad Street in 1893, Chinatown is one of the oldest and historically and culturally rich neighborhoods in the City of Salinas. An important crossroads in California immigrant history, it is the largest, active Chinatown between San Francisco and Los Angeles. The Slum and Blight designation was effective July 1, 2017 , and will continue for a period of 10 years after. The designation covers an area of six- blocks that are physically separated from the surrounding Downtown and the Intermodal Transit Center by the Union Pacific railroad tracks and by the main arterials such as East Market Street, Sherwood Drive, East Rossi Street, Monterey Street and North Main Street. The neighborhood includes the following minor streets: East Lake Street, California Street, Soledad Street, Market Way, Bridge Street. Within the neighborhood, there are three (3) alleys: Bridge, Rossi, and Lake. The six blocks that form the Chinatown Slum and Blight area are located primarily within Census Tract 18.02 BG 2. This BG has a population of about 2,193, with 69.8 percent being low and moderate income.

During FY 2024-25, the City did not allocate funds specifically designated for the Chinatown area. However, CDBG funds were awarded to the Salinas Outreach and Response Team (SORT) to provide services such as engagement, linkages and referrals to supportive programs. These services will benefit residents in the Chinatown as well as those throughout the City. Additionally, ESG funds were provided to Community Housing Solutions to operate the Rapid Re- Housing Program, which also serves individuals in the Chinatown area .

Leveraging
Explain how federal funds leveraged addit ional resources (private, state, and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan.

ESG funding is often an essential funding source for Public Service subrecipients, often serving as a gateway to additional funding opportunities. None of the subrecipients’ essential safety net programs rely solely on ESG, instead they leverage a mix of funding sources. Local community foundations, for example, typically require matching funds – an obligation that has frequently been met through City of Salinas CDBG allocations.

Beyond direct financial leverage, public investment in neighborhood infrastructure – such as upgraded water mains, traffic signals or street lighting, can serve as a catalyst for private investment . These improvements often encourage area property owners to invest in their own properties, amplifying the impact of public funds.

In addition, the City is working on establishing several new public/community facilities on City-owned properties:

CAPER 10
OMB Control No: 2506-0117 (exp. 07/31/2015)
1081 Buckhorn Drive: The City purchased 1081 Buckhorn Drive with HUD Economic Development Initiatives (EDI) funds with the specific objective to develop a childcare center. The Alisal Union School District (AUSD) managed this project and received $880,000 of CDBG funds for the construction of a center that will accommodate up to 90 preschool children and employ 15 staff and faculty members. The project was completed in January 2025 and had a grand opening ceremony on February 3, 2025. The facility will be f ully occupied and operational in August 2025 at the beginning of the school year.

HOME Match Contribution: For FY 2024-2025, the City of Salinas was eligible for a 50 -percent reduction in HOME match requirements based on the City’s poverty index of 14.25 percent. The ex cess match carried over from the previous program year 2023 is $6,372,712. There was no match contribution for program year 2024.

Fiscal Year Summary – HOME Match

1. Excess match from prior Federal fiscal year $6,372,712

2. Match contributed during current Federal fiscal year $0

3. Total match available for current Federal fiscal year (Line 1 plus Line 2) $6,372,712

4. Match liability for current Federal fiscal year $0

5. Excess match carried over to next Federal fiscal year (Line 3 minus Line 4) $6,372,712 Table 4 – Fiscal Year Summary - HOME Match Report

CAPER 11
OMB Control No: 2506-0117 (exp. 07/31/2015)
Match Contribution for the Federal Fiscal Year
Project No. or
Other ID
Date of
Contribution
Cash
(non-Federal
sources)
Foregone
Taxes, Fees,
Charges
Appraised
Land/Real
Property
Required
Infrastructure
Site
Preparation,
Construction
Materials,
Donated labor
Bond
Financing Total Match

N/A N/A N/A N/A N/A N/A N/A N/A N/A
Table 5 – Match Contribution for the Federal Fiscal Year

HOME MBE/WBE report
Program Income – Enter the program amounts for the reporting period Balance on hand at
beginning of reporting
period
Amount received during
reporting period
Total amount expended
during reporting period
Amount expended for
TBRA
Balance on hand at end of
reporting period
$598,003.03 $173,969.04 $17,396.90 $0 $754,572.17
Table 6 – Program Income

CAPER
OMB Control No: 2506-0117 (exp. 07/31/2015)
Minority Business Enterprises and Women Business Enterprises – Indicate the number and dollar value of contracts for HOME projects completed during the reporting period Total
Minority Business Enterprises
White Non-
Hispanic
Alaskan
Native or
American
Indian
Asian or
Pacific
Islander
Black Non-
Hispanic Hispanic
Contracts
Number 0 0 0 0 0
Dollar
Amount 0 0 0 0 0
Sub-Contracts
Number 0 0 0 0 0
Dollar
Amount 0 0 0 0 0
Total
Women
Business
Enterprises Male
Contracts
Number 0 0 0
Dollar Amount $0.0 $0.0 $0.0
Sub-Contracts
Number 0 0 0
Dollar Amount $0.0 $0.0 $0.0
Table 7 – Minority Business and Women Business Enterprises

Minority Owners of Rental Property – Indicate the number of HOME assisted rental property owners and the total amount of HOME funds in these rental properties assisted Total
Minority Property Owners
White Non-
Hispanic
Alaskan
Native or
American
Indian
Asian or
Pacific
Islander
Black Non-
Hispanic Hispanic
Number 0 0 0 0 0 0
Dollar
Amount
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Table 8 – Minority Owners of Rental Property

CAPER
OMB Control No: 2506-0117 (exp. 07/31/2015)
Relocation and Real Property Acquisition – Indicate the number of persons displaced, the cost of relocation payments, the number of parcels acquired, and the cost of acquisition Parcels Acquired 0 $0
Businesses Displaced 0 $0
Nonprofit Organizations Displaced 0 $0
Households Temporarily
Relocated, not Displaced 0 $0
Households
Displaced Total
Minority Property Enterprises
White Non-
Hispanic
Alaskan
Native or
American
Indian
Asian or
Pacific
Islander
Black Non-
Hispanic Hispanic
Number 0 0 0 0 0 0
Cost $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Table 9 – Relocation and Real Property Acquisition

CAPER 14
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low-income, low-income, moderate-income, and middle-income persons served.

One-Year Goal Actual
Number of homeless households to be
provided affordable housing units
0 0
Number of non-homeless households to be
provided affordable housing units
5 0
Number of special-needs households to be
provided affordable housing units
0 0
Total 5 0
Table 10 – Number of Households

One-Year Goal Actual
Number of households supported through
rental assistance
0 0
Number of households supported through
the production of new units
5 0
Number of households supported through
the rehab of existing units
0 0
Number of households supported through
the acquisition of existing units
0 0
Total 5 0
Table 11 – Number of Households Supported

Discuss the difference between goals and outcomes and problems encountered in meeting these goals.

Under the City's Affordable Housing Goal for FY 2024-25, the City proposed reserv ing 90 percent of the available HOME funds for an affordable housing project to be determined in the future. During the fiscal year 2024 -25, the City held several meetings with both non-profit and for-profit developers to better understand the affordable housing projects currently in the pipeline within the City of Salinas limits. Although the City did not contribute any HOME or CDBG funds toward affordable housing projects in FY 2024-25, it anticipates funding potential projects in FY 2025-26. Several local developers have projects underway, including: CHISPA, a local non-profit developer, with one senior housing project in the pipeline. The Housing Authority of the County of Monterey, a non-profit developer, with two multi-family affordable housing projects. Eden Housing Inc., another non-profit developer, with one multi-family affordable housing project. A new, for-profit developer, Workbench, is collaborat ing with a local non -profit developer to develop one multi-family affordable housing project within the City. With these known developments, there are at least eight affordable housing projects in the pipeline within City limits. The City anticipates contributing HOME and CDBG funds to support these efforts in upcoming fiscal years.

CAPER 15
OMB Control No: 2506-0117 (exp. 07/31/2015)
Discuss how these outcomes will impact future annual action plans.

Housing rehabilitation activities within the City were suspended during FY 2024-25 and are currently under evaluation for reinstatement. This program will be further assessed during the development of the City’s upcoming Consolidated Plan.

Include the number of extremely low-income, low-income, and moderate-income persons served by each activity where information on income by family size is required to determine the eligibility of the activity.

Number of Persons Served CDBG Actual HOME Actual
Extremely Low-income 0 0
Low-income 0 0
Moderate-income 0 0
Total 0 0
Table 12 – Number of Persons Served
Narrative Information
The City utilizes its CDBG and HOME funds to provide affordable housing for the low-income population.

The new FY 2025-2029 Consolidated Plan contemplates the reinstatement of a housing rehabilitation program in the upcoming years.

CAPER 16
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending homelessness through:

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The Salinas Outreach and Response Team (SORT) actively participates in planning and facilitating homeless outreach meetings in partnership with the Coalition of Homeless Service Providers. These meetings bring together a wide range of service providers, including: Interim Inc, Junipero Franciscan Workers (Dorothys), Community Human Services (SVSOP), Valley Health Associates, St. Vincent PFC, Health and Advocacy Team Support, The Epicenter, Downtown Streets Team, Monterey County Department of Social Services , Helping Empower Residency Services, City of Seaside, Access Support Network, and Community Homeless Solutions. The purpose of these meetings is to improve system processes and coordination of outreach services to address the complex needs of the unsheltered population across the region. Examples of coordinated efforts include resource tabling events and joint outreach through Outreach Committee, which supports regional efforts and provides direct services in Salinas encampments such as Industrial, Chinatown, Carr Lake, and Creekbridge. Additional coordination and resources have also been extended to the Pajaro Levee through collabor ation between outreach committees and the Continuum of Care. In FY 2024-25, the City of Salinas fund ed both the Chinatown Navigation Center Rapid Rehousing Program and The Salinas Outreach and Response Team (SORT) through CDBG and ESG. Both programs demonstrated increased success, as outlined in the ESG narrative.

City of Salinas:

The City collaborates with the Coalition of Homeless Services Providers through several committees, including the HMIS/CARS Oversight Committee, and the Monitoring and Evaluations Committee. These groups focus on improving policies and strengthening the systematic homeless response to homelessness with the Continuum of Care. The City’s Mayor serves on the Leadership Council for the Regional Continuum of Care (Co C), a collective body of homeless service stakeholders that coordinates policies, strategies, and activities aimed at ending homelessness in Monterey and San Benito Counties. Additionally, leaders from Monterey County, including City Managers, key municipal staff, and non-profit organizations have convened to explore solutions for improving conditions in China town, with a focus on housing and supportive resources.

City staff also actively participate in the Salinas Downtown Community Board, a group that meets monthly to develop a vision for Chinatown. This board includes service providers, City and County representatives, and other neighborhood stakeholders.

Addressing the emergency shelter and transitional housing needs of homeless persons Homeless Funding: In 2016 the City became the Administrative Entity (AE) responsible for administering State ESG and California Emergency Solutions and Housing (CESH) programs for San Benito and Monterey Counties. This collaboration has expanded emergency homeless funding and increased capacity to serve individuals experiencing homelessness within our Continuum of Care ( CoC). In 2022, the City and County partnered to launch a program modeled after P roject Room Key, now known as the Emergency Motel Program (EMP). In FY 2024-25, the City of Salinas solely funded the operations using Encampment Resolution Funding and California Emergency Solutions and Housing (CESH) Funds. The Emergency Motel Program currently offers 37 rooms, 11 with double beds, 26 single beds.

The City utilized mul tiple funding streams to support operations of the Share Cente r, Chinatown Navigation Center , and the EMP. These included CAL ICH Encampment Resolution Funding, Capital Improvement Projects (CIP) and American Rescue Plan (ARPA) Funding. The Chinatown Navigation Center (CNC) operated by Community Homeless Solutions, provides sanitation services and on- site case management services for individuals experiencing homelessness in Chinatown. To complement these services, the City purchased, installed, and furnish ed a Sprung

CAPER 17
OMB Control No: 2506-0117 (exp. 07/31/2015)
Structure that can temporarily house up to 51 individuals. This facility is also managed and operated by Community Homeless Solutions. In FY 2022-23, leveraging additional funds, the City and County partnered to expand the Project Room Key model in Salinas through the EMP, which offers 37 rooms, 11 with double beds, 26 single beds. Case management services at the EMP are provided by University Corporation of Monterey Bay and are partially funded through ESG-CV.

Emergency Shelter : Com munity Homeless Solutions (CHS) and Victory Mission provide alternative emergency shelters tohomeless population in Salinas . Community Homeless Solutions operates a domestic violence shelter serving single women, women with children, and men who are victims of domestic violence, at a confidential location in the City of Salinas. Victory Mission operates a 7-days a week overnight Men's Shelter with bed, clean bedding, hot shower, bath towel, soap, shampoo, toothbrush, toothpaste, razor, shaving cream, lotion, hair gel, clean socks, undergarments and clean clothes. Laundry service available for $2.00 a night Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs Discharge Policies: On May 8, 2007, the City of Salinas adopted a Discharge Coordination Policy addressing the release of individuals from publicly funded institutions and systems of care. Since the City neither owns nor operates such facilities, the policy’s adoption served primarily as a symbolic gesture – demonstrating the City’s commitment to regional collaboration and its support for coordinated discharge planning efforts. The Countywide Continuum of Care (CoC) continues to lead efforts to align discharge policies across publicly funded institutions and systems of care. As part of this initiative, the “Lead Me Home: The Game Plan for Housing Homeless People in Monterey and San Benito Counties” established the Discharge Planning Committee as Action Teams focused for Foster Youth, Health and Criminal Justice. These groups aim to develop a comprehensive, county-wide discharge planning policy that reduces the risk of homelessness following institutional release.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
In the City of Salinas, h omeless service agencies actively strive to transition individuals experiencing homelessness into stable permanent housing as swiftly and compassionately as possible – reflecting a community-wide commitment to dignity, recovery, and long-term solutions.

Community Housing Solutions: CHS provided rapid re-hous ing to 72 persons.

CAPER 18
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-30 - Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
The Housing Authority of the County of Monterey (HACM) serves as the designated housing authority for the County.

HACM has converted all public housing units countywide to Project -Based Rental Assistance. To date, the City has completed a total of 27 California Tax Credit Allocation Committee (CTCAC) Local Review Agency (LRA) Project Evaluation Forms for HACM in connection with proposed Residential Assistance Demonstration (RAD) projects.

The City of Salinas also owns and manages three (3) properties, comprising a total of four residential units. These units are not classified as HUD “public housing” and were acquired through grants awarded by various departments within the State of California.

Actions taken to encourage public housing residents to become more involved in management and participate in homeownership
HACM has taken the lead in developing innovative models to enable the homeless and other low -income families to achieve economic independence and self -sufficiency. Their multi- faceted plan to improve the operation of public housing units and assist clients toward self-sufficiency is detailed in their periodically updated Five Year Action Plan.

Actions taken to provide assistance to troubled PHAs
HACM has not been designated by HUD as “troubled.”

CAPER 19
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i)
The most critical barrier to affordable housing in Salinas is that the overwhelming demand for decent, affordable housing compared to the City's limited resources. The elimination of redevelopment funds significantly compromised the City's ability to meet its affordable housing goals. Additionally, rising housing costs and declining public funds have led to the suspension of the City’s First-Time Homebuyer Program. Despite these challenges, the City continues to aggressively pursue funding opportunities at the local, state, and federal levels to supplement its constrained resources.

The City values its partnerships with nonprofit housing developers such as CHISPA, MidPen Housing, HACM, Eden Housing Inc., and others in implementing innovative strategies to expand permanent housing options for homeless and low-income residents.

To support developers, the City offers fee deferrals for certain eligible impact fees. These deferrals are typically structured the as a low-interest loans over a fifty-five-year period, repaid through residual receipts.

In June 2017, the City updated its Inclusionary Housing Ordinance to provide more flexible options for developers to produce affordable units on-site. Projects that are 100% affordable are exempt from the ordinance’s requirements.

On September 13, 2022, Community Development Department staff presented an Administrative Report to the City Council regarding the Inclusionary Housing Ordinance and the Downtown Area Exemption (“Downtown Exemption”) .

Recognizing barriers to adaptive reuse, the City had previously adopted an Adaptive Reuse Ordinance in 2018 to relax or eliminate certain development standards and incentivize the conversion of older, underutilized commercial buildings.

However, the additional costs associated with implementing the Inclusionary Housing Ordinance can make such conversion economically infeasible. On October 18, 2022, following extensive discussion, the City Council recommended amending the Downtown Exemption to apply only to adaptive reuse projects , acknowledging the financial and logistical challenges of converting historic or aging buildings that might otherwise remain vacant.

The City also maintains a Density Bonus Ordinance , which offers incentives and concessions to developers who include a designated percentage of affordable housing in their projects. The City continues to align its polices with the latest updates from State of California. Under current law, 100% affordable housing projects may qualify for up to five concessions and unlimited number of waivers.

To encourage the development of accessory dwelling units (ADUs), the City has updated its Zoning Ordinance to allow greater has flexibility. In recent years, ADUs have become the most significant source of new housing units within City limits. .

The City ’s Housing Element was updated for the 2023 -2031 planning period, establishing housing programs and activities to guide development and preservation efforts over the next eight –year s. The approved Housing Element includes actions to mitigate constraints to housing development, such as Zoning Code amendments to support housing for special needs populations. The Housing Element was adopted by City Council on December 5, 2023, and was found to be in substantial compliance by the State of California on February 8, 2024.

Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) Homeless individuals remain among the most underserved groups in Salinas, with ESG funding falling far short of what is needed to adequately address the City's homelessness challenges. In response, the City has leveraged its CDBG allocation to support public facilities and services that benefit this vulnerable group. In FY 2024-25, the City is also utilizing its remaining CDBG-CV funds to h elp finance services and projects that serve this underrepresented population.

CAPER 20
OMB Control No: 2506-0117 (exp. 07/31/2015)
Additionally, the City has partnered with the Continuum of Care for Monterey and San Benito Counties to implement homeless programs and services funded through the State ESG programs. As the lead agency for administering these funds, t he City directs resources toward homeless prevention , emergency shelter, rapid rehousing, and outreach services.

The following agencies were approved for FY 2024-25 State ESG funding:
• City of Salinas – Program Administration and The Salinas Outreach and Response Team • Community Homeless Solutions – Rapid Rehousing Program Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) As a condition for receiving HUD funds, the City of Salinas complies with HUD's Lead Safe Housing Regulation (Title 24, Part 35). Potential project sites with housing units constructed prior to 1978 are tested by a certified lead inspection firm for lead -paint and, where applicable, other materials containing lead, such as ceramic tiles. If lead is detected , remediation is performed by a certified Lead-Based Paint (LBP) contractor before the General Contractor is permitted to begin construction activities.

In FY 2024-25, there was no housing projects or public facilities under construction.

Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) The City’s anti-poverty strategy is outlined below, with specific FY 2024-25 actions noted under each category:

1. The City continues to support housing developers that provide affordable rental and multifamily housing opportunities in Salinas. While no affordable housing projects are currently under construction , eight (8) projects are in the pipeline within City limits. The City anticipates contributing HOME and CDBG funds to these developments in upcoming fiscal y ears. These projects aim to deliver both permanent and permanent supportive housing for low-income households and individuals experiencing homelessness.

2. As of FY 2024-25, the Housing Services Program, which previously offered Housing Rehabilitation Loans, Housing Accessibility Assistance (HAA) Grants, and Lead-Based Paint (LBP) Grants is being re-evaluated. It has been included in the 2025-2029 Consolidated Plan for potential to reinstatement.

3. The City continues to support fair housing services that help seniors to remain in their homes and to addresses basic needs.

4. The City remains committed to supporting homeless service providers in Salinas and the broader community.

In FY 2024-2025, Community Homeless Solutions served 72 individuals with rental financial assistance for housing stability, while the City’s Salinas Outreach and Response Team provided street outreach and housing navigation services to 197 individuals.

5. The Hebbron Family Center (HFC) will offer a safe, engaging environment for youth and residents to participate in enrichment activities. Programs will include a Youth Homework Center, Drop -in After School program, Summer Program, Girl Scout Troop 541, Karate Classes, Read Grow Play, Citizenship Classes, Food Bank services and other recreation offerings. The original HFC facility was demolished, and the new center is currently in the building permit phase. Construction is expected to begin in the coming months and be completed by the end of 2025.

6. The City continues to promote Section 3 Employment and Economic Opportunities for low -income residents and business concerns through its housing and public improvement projects. The Section 3 Clause is included in all bid package for public works and federally funded affordable housing projects. Section 3 data is collected annually and reported to HUD via IDIS. The City has transitioned to the new HUD Section 3 Rule and is working with developers, consultants, and general contractors to ensure compliance.

Actions taken to develop institutional structure. 91.220(k); 91.320(j) The City will continue to pursue other sources of funds to leverage HUD funding and entice housing developers to create affordable housing developments. The City is in the process of engaging local affordable housing developers

CAPER 21
OMB Control No: 2506-0117 (exp. 07/31/2015)
and learn the future housing development plans and offer existing and future sources of funds from the State of California and HUD.

The City is committed to continue funding the SHARE Center, CNC, and SORT using HUD, State and local funds, to alleviate homelessness using HUD, state and local funds.

The City has also established a Housing and Land Use Committee to oversee the use of HUD funds. This committee provides an additional forum for nonprofits and stakeholders to communicate with the City and community members regarding housing and community development needs and plans for future projects. The committee is tasked with the objective of enhancing coordination and improving the effectiveness and efficiency in using HUD funds. Specifically, the committee evaluated the planned projects and funding, with input from the service providers and stakeholders, made changes to the criteria for allocating funds, and established a minimum grant amount for each agency before final awards are approved by City Council through the approval of the City’s Annual Action Plan.

The City utilizes City Data Services for efficient and accurate management of the grant funds.

Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j)
The City of Salinas partners with its strong network of public and private housing and social service agencies to provide housing and community development programs in the City. Coordination efforts are ongoing. In addition, the City is working with the Counties of Monterey and San Benito Continuum of Care to implement homeless programs and services using State ESG funds. This funding source available to the region allow s the City to provide an increased level of services for the homeless and at-risk homeless. The City serves as the lead agency for this funding program.

The City is also in constant contact and collaboration with the Housing Authority of the County of Monterey (HACM) in the development of affordable housing projects and the provision of housing vouchers for projects funded with federal, state and local funds.

Identify actions taken to overcome the effects of any impediments identified in the jurisdiction’s analysis of impediments to fair housing choice. 91.520(a) The 2023-2031 Housing Element was adopted by City Council on December 5, 2023. The State found this document to be in substantial compliance on February 8, 2024. A major focus of this update is the new State requirement to identify impediments to fair housing choice. The newly adopted and approved Housing Element contains a range of meaningful actions to address five fair housing themes, including:
• Fair housing outreach and enforcement
o Target outreach to areas with underserved populations o Target code enforcement activities in Alisal Neighborhood Revitalization Strategy Area ( NRSA) where substandard housing units are more common
• Housing mobility
o Proactively pursue and leverage governmental and non -governmental funds to increase the inventory of affordable housing
o Pursued P rohousing Incentive Program ( PIP) funding and the City maintains a P rohousing Designation
o Amend the Zoning Code to facilitate the development of affordable housing and a variety of housing types, including emergency shelters, supportive housing, low barrier navigation centers, etc. • New opportunities in high resource areas
o Acquire and assemble sites to develop affordable housing particularly in high opportunity areas o Promote the establishment of Affordable Housing Overlay Zones in ‘High Opportunity Areas’ that include a bundle of effective and flexible incentives to encourage developers to build affordable housing

CAPER 22
OMB Control No: 2506-0117 (exp. 07/31/2015)
o Facilitate ADU/JADU construction through promotion on the City website, subsidies for owners providing affordable ADUs, and extension of elimination of development impact fees for ADUs between 800-1,200 sq. ft.
o Implement the Family Homeless Challenge Grant by purchasing single family homes and construction of ADUs for unhoused families
o Reassess and reinstate the First Time Homebuyer Program • Place-based strategies for neighborhood improvement
o Explore the creation of a Community Revitalization Investment Authority for Downtown, Chinatown, and Alisal
o Develop and adopt the East Area Specific Plan
o Reassess and reinstate the Housing Services Program
o Increase public services through the establishment of a CBDO focused on youth services, fair housing services and tenant/landlord counseling, and/or small business counseling, education, and technical assistance services
• Tenant protection and anti-displacement
o Adopted a Residential Rental Registration Ordinance which will allow the City to broaden the tenant- landlord services
o Adopted a rent stabilization ordinance, tenant relocation assistance ordinance, and just cause for eviction ordinance

CAPER 23
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements During FY 2024-25, the City performed a desk review monitoring of all CDBG, ESG, and HOME subrecipients through its on-line grant management system, City Data Services (CDS). The City conducted virtual monitoring's of programs and case files of its subrecipients.

The City’s monitoring procedures for the implementation of its CDBG, HOME, and ESG programs are summarized in Attachment B.

Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports.

Citizen participation is one of the most important components of the Consolidated Plan (CP) process.

Publicity: Public notices for a public hearing we re released in The Monterey County Herald to inform the public that a draft CAPER was available for review and public comment. The public notices were also posted at the City’s website, the City’s Libraries, City Hall, City Council Chambers and Community Development Department; and were distributed to the City’s NOFA distribution list.

Public Review of Draft Documents: The Ci ty conducted a minimum of 15-day public review period from September 8, 2025, through September 23, 2025. The Draft CAPER was made available at the following locations:
• the City website: https://www.cityofsalinas.org/Residents/Community/Housing-Community-Development • in-person at the Community Development Department, City Clerk’s office at City Hall, John Steinbeck Library, Cesar Chavez Library, and El Gabilan Library
• and through mail when requested.

The Consolidated Plan, amendments, annual Action Plans, and performance reports will be available for five years at Salinas Community Development Department.

CAPER 24
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences.

Not applicable.
[BEDI grantees] Describe acc omplishments and program outcomes during the last year.

Not applicable.

CAPER 25
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-50 - HOME 91.520(d)
Include the results of on-site inspections of affordable rental housing assisted under the program to determine compliance with housing codes and other applicable regulations Please list those projects that should have been inspected on -site this program year based upon the schedule in §92.504(d). Indicate which of these were inspected and a summary of issues that were detected during the inspection.

For those that were not inspected, please indicate the reason and how you will remedy the situation.

The following list below represents all of the City's HOME-assisted affordable multi-family rental housing projects and shows the total number of HOME assisted units in each project:
• California House (436 California Street) – 5 units
• Gateway Apartments (25 Lincoln Avenue) – 20 units
• Haciendas Phase I (233 Calle Cebu) – 6 units
• Haciendas Phase II (241 Calle Cebú) – 4 units
• Haciendas Phase III (Hikari) – 9 units
• Haciendas Phase IV (34 E. Rossi Street) – 3 units
• Jardines Del Monte (1253 Del Monte Avenue) – 5 units
• La Gloria Apartments (539 E. Market Street) – 10 units • Salinas Pointe Apartments (1260 John Street) - 5 units • Lupine Gardens (300 Casentini Street) – 20 units
• Parkside Manor Phase I (1112 Parkside Street) - 6 units • Sherwood Village (808 N. Main Street) – 43 units
• Sun Rose Apartments (439 Soledad Street) – 8 units
• Tresor Apartments (1041 Buckhorn Drive) – 8 units
• Tynan Village (323 Front Street) – 41 units
• Wesley Oaks (138 Carr Avenue) – 6 units
• Vista de la Terraza (165-177 Carr Avenue)- 8 units
• Moon Gate Plaza – 12 Units
City staff could not complete any on- site inspection of affordable units in FY 2024-25. However, the City request s inspection reports from at least 10% of all affordable multi-family rental housing projects. It is the City’s goal to physically inspect all of the above listed HOME units during 2025-26. City staff will conduct an on- site HOME site visit which includes an internal unit inspection for each HOME-assisted unit, common area and external property inspection. City staff will use HOME checklist to cross reference the property conditions. The Housing and Community Development Division will keep a list of when the HOME units were inspected and what was the outcome of these inspections.

For the years that a HOME onsite inspection is not required and in accordance with the HOME final rule and §92.504(d), the City uses its customized online grant management software system (City Data Services), which allows all property owners/managers to annually submit unit i nspection reports and data as part of the City’s Annual Compliance Monitoring. The desk monitoring review consist s of developer property unit inspection reports, annual income recertification reports, insurance documentation in which the developer submits annually to the City through CDS.

City staff has established a HOME spreadsheet which informs staff when the inspections are due on each property and will continue to use this spreadsheet. In accordance with the HOME final rule and §92.504(d), the City will ensure that on-site inspections will occur within 12 months after project completion and at least once every 3 years thereafter during the period of affordability. In addition, the property owner/manager must annually certify to the City that each building and all HOME -assisted units in the project are suitable for occupancy, considering State and local health, safety, and other applicable codes, ordinances, and requirements, and the ongoing property standards established by the City to meet the requirements of §92.251. The City will ensure that inspections will be based on a statistically valid sample of units appropriate for the size of the HOME-assisted project, as set forth by HUD.

CAPER 26
OMB Control No: 2506-0117 (exp. 07/31/2015)
Provide an assessment of the jurisdiction's affirmative marketing actions for HOME units. 92.351(b) There are three components to the City’s “affirmative marketing” of activities funded by the HUD entitlement grants: 1) Outreach regarding program design and administration; 2) Marketing of programs operated by the City; and 3) Marketing of activities operated by sub-recipients and sub-grantees.

Language barriers can be an impediment to accessing housing of choice. Reflective of the demographics in the City,

73.5 percent of all Salinas residents spoke languages other than English at home, according to the American Community Survey (ACS). Over half of these residents spoke English “less than very well.” Linguistic isolation is more severe among Hispanics than among Asians, with approximately 69.3 percent of Salinas residents speaking “Spanish or Spanish Creole
1” at home compared to only 3. 2 percent speaking “Asian and Pacific Islander languages.” Among “Spanish or Spanish Creole” speaking households approximately 51.0percent spoke English “less than very well”.

The City’s Citizen Participation Plan (CPP) includes guidelines for Limited English Proficiency (LEP).

The City also had hard copies and electronic brochures (English and Spanish) for the Housing Services Program when it was available.

Outreach Regarding Program Design and Administration: In keeping with the updated CPP, notices for Acti on Plan, CAPER, and community development needs hearings and annual Request for Proposals are typically published in Spanish and English in the local newspaper s, City’s websites, libraries, City Hall and Community Development Department. The City also subscribes to the California Relay Service to accommodate TDD (telecommunication devices for the deaf) users; published public notices provide a TDD number. The City also provides notice to local agencies that serve groups that may need notice in a different format. Spanish/English translation is typically made available during City Council meetings and at every public hearing regarding Action Plans and other HUD -funded topics.

Marketing of Programs Operated by City: The Cit
y’s HUD-funded activities are administered by the Housing and Community Development Division of the Community Development Department. Of the current full-time positions allocated to the Division, at least five are certified by the City as bilingual English/Spanish, including the first point of contact for telephone and walk- in inquiries. Promotional materials are produced in both English and Spanish as well as marketing when published in newspapers. From time to time, targeted outreach for housing rehabilitation and first- time homebuyer activities is focused upon Spanish-speaking residents, including information to bilingual realtors and mortgage loan packagers, and Spanish language Public Service Announcements to the local news media.

Marketing of Programs Operated by Subrecipients: All Ci ty funding agreements employing funds from HUD grants require affirmative marketing activities. The City’s monitoring plan includes verification that affirmative marketing is being employed. Many of the funded non -profit agencies routinely provide their services in a bilingual format. City housing activities that are not HUD-funded (e.g., inclusionary housing and density bonus programs) routinely require affirmative marketing to the community.

Refer to IDIS reports to describe the amount and use of program income for projects, including the number of projects and owner and tenant characteristics The City receive d $173,969.04 in HOME program income. Program income has primarily been used to augment funding for the City’s multi-family housing projects underway.

Describe other actions taken to foster and maintain affordable housing. 91.220(k) (STATES ONLY:

Including the coordination of LIHTC with the development of affordable housing). 91.320(j)

1 American Community Survey offers the following sub-categories for members of the population that “Speak a language other than English”:
“Spanish or Spanish Creole”; “Other Indo-European languages”; “Asian or Pacific Island languages”; and “Other languages”

CAPER 27
OMB Control No: 2506-0117 (exp. 07/31/2015)
In addition to using HOME funds to create affordable housing units, the City of Salinas enforces an Inclusionary Housing Ordinance that requires a designated percentage of affordable units in new housing developments within City limits. This ordinance was updated in 2017 to enhance its effectiveness in promoting affordable housing production.

The City also actively pursues state funding to support affordable housing development. Key funding sources include the Permanent Local Housing Allocation (PLHA), Prohousing Incentive Program (PIP), Local housing Trust Fund (LHTF), and the Family Homeless Challenge Grant (FHC).

In support of density -driven development, the City maintains a Density Bonus Ordinance that allows developers to increase project density in exchange for including a specified percentage of affordable housing units.

Additionally, City staff assist with the completion of the California Tax Credit Allocation Committee ( CTCAC) Local Review Agency (LRA) Evaluation Forms for all affordable housing projects seeking CTCAC funding within the jurisdiction.

CAPER 28
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-58 – Section 3
Identify the number of individuals assisted and the types of assistance provided During FY 202 4-25, the City’s expended funds primarily on public and homeless services, as well as program administration. These programs are not subject to Section 3 requirements. Projects subject to Section 3 requirements include:
 Hebbron Family Center
 Sherwood Recreation Center IV
 Chinatown Neighborhood Improvements
 Buckhorn Early Childhood Development Center
 Natividad Creek Park Restroom Rehabilitation

Total Labor Hours CDBG HOME ESG HOPWA HTF
Total Number of Activities 5 0 0 0 0
Total Labor Hours 20,897
Total Section 3 Worker Hours 0
Total Targeted Section 3 Worker Hours 0
Table 13 – Total Labor Hours

Qualitative Efforts - Number of Activities by Program CDBG HOME ESG HOPWA HTF Outreach efforts to generate job applicants who are Public Housing Targeted Workers
Outreach efforts to generate job applicants who are Other Funding Targeted Workers.

Direct, on-the job training (including apprenticeships). 1 Indirect training such as arranging for, contracting for, or paying tuition for, off-site training.

Technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching).

Outreach efforts to identify and secure bids from Section 3 business concerns. 2
Technical assistance to help Section 3 business concerns understand and bid on contracts. 2
Division of contracts into smaller jobs to facilitate participation by Section 3 business concerns. 1
Provided or connected residents with assistance in seeking employment including: drafting resumes, preparing for interviews, finding job opportunities, connecting residents to job placement services.

Held one or more job fairs. 1
Provided or connected residents with supportive services that can provide direct services or referrals.

CAPER 29
OMB Control No: 2506-0117 (exp. 07/31/2015)
Provided or connected residents with supportive services that provide one or more of the following: work readiness health screenings, interview clothing, uniforms, test fees, transportation.

Assisted residents with finding childcare.

Assisted residents to apply for, or attend community college or a four year educational institution.

Assisted residents to apply for, or attend vocational/technical training.

Assisted residents to obtain financial literacy training and/or coaching.

Bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns. 1
Provided or connected residents with training on computer use or online technologies.

Promoting the use of a business registry designed to create opportunities for disadvantaged and small businesses. 2 Outreach, engagement, or referrals with the state one-stop system, as designed in Section 121(e)(2) of the Workforce Innovation and Opportunity Act.

Other. Hebbron Rec Center & Buckhorn Early Childhood Dev Center – Submitted DAS 140 & 142 forms, Hire Union Carpenters

2 Table 14 – Qualitative Efforts - Number of Activities by Program

CAPER 30
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-60 - ESG 91.520(g) (ESG Recipients only)
ESG Supplement to the CAPER in e-snaps
For Paperwork Reduction Act

1. Recipient Information—All Recipients Complete
Basic Grant Information
Recipient Name SALINAS
Organizational DUNS Number 010919447
EIN/TIN Number 946000412
Identify the Field Office San Francisco
Identify CoC(s) in which the recipient or
subrecipient(s) will provide ESG assistance
Monterey County

ESG Contact Name
Prefix Ms.

First Name Lisa
Middle Name
Last Name Brinton
Suffix
Title Community Development Director

ESG Contact Address
Street Address 1 200 Lincoln Ave
Street Address 2
City Salinas
State CA
ZIP Code 93901-
Phone Number (831)758-4239
Extension
Fax Number
Email Address [email protected]

CAPER 31
OMB Control No: 2506-0117 (exp. 07/31/2015)
ESG Secondary Contact
Prefix Mr.

First Name Francisco
Last Name Brambilla
Suffix
Title Management Analyst
Phone Number (831) 758-7334
Extension
Email Address [email protected]

2. Reporting Period—All Recipients Complete
Program Year Start Date 07/01/2024
Program Year End Date 06/30/2025

3a. Subrecipient Form – Complete one form for each subrecipient Subrecipient or Contractor Name Community Homeless Solutions City Marina
State CA
Zip Code 93933
UEI FNS8C7JNC7H6
Is subrecipient a victim services provider No
Subrecipient Organization Type Other Non-Profit Organization ESG Subgrant or Contract Award Amount $68,558

Subrecipient or Contractor Name Salinas Outreach and Response Team (SORT) City Salinas
State CA
Zip Code 93901
UEI
Is subrecipient a victim services provider No
Subrecipient Organization Type Government
ESG Subgrant or Contract Award Amount $95,308

CAPER 32
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-65 - Persons Assisted
Reporting for ESG funding is now completed in a separate system SAGE. An overview of the SAGE report will be found in Attachment E: SAGE Report Overview of this document.

4. Persons Served
4a. Complete for Homelessness Prevention Activities
Number of Persons in
Households Total
Adults 0
Children 0
Don’t Know/Refused/Other 0
Missing Information 0
Total 0
Table 15 – Household Information for Homeless Prevention Activities

4b. Complete for Rapid Re-Housing Activities
Number of Persons in
Households Total
Adults 72
Children 0
Don’t Know/Refused/Other 0
Missing Information 0
Total 72
Table 16 – Household Information for Rapid Re-Housing Activities

4c. Complete for Shelter
Number of Persons in
Households Total
Adults 0
Children 0
Don’t Know/Refused/Other 0
Missing Information 0
Total 0
Table 17 – Shelter Information

CAPER 33
OMB Control No: 2506-0117 (exp. 07/31/2015)

4d. Street Outreach
Number of Persons in
Households Total
Adults 112
Children 13
Don’t Know/Refused/Other 0
Missing Information 0
Total 125
Table 18 – Household Information for Street Outreach

4e. Totals for all Persons Served with ESG
Number of Persons in
Households Total
Adults 184
Children 13
Don’t Know/Refused/Other 0
Missing Information 0
Total 197
Table 19 – Household Information for Persons Served with ESG

5. Gender—Complete for All Activities
Total
Male 0
Female 0
Don't Know/Refused/Other 0
Missing Information 0
Total 0
Table 20 – Gender Information

CAPER 34
OMB Control No: 2506-0117 (exp. 07/31/2015)

6. Age—Complete for All Activities
Total
Under 18 13
18-24 10
25 and over 174
Don’t Know/Refused/Other 0
Missing Information 0
Total 197
Table 21 – Age Information

7. Special Populations Served—Complete for All Activities Number of Persons in Households
Subpopulation Total
Total Persons
Served –
Prevention
Total Persons
Served – RRH
Total Persons
Served in Street
Outreach
Veterans 2 0 2 0
Victims of
Domestic
Violence
77 0 27 50

Elderly 19 0 12 7
HIV/AIDS 0 0 0 2
Chronically
Homeless 93 0 14 79
Persons with Disabilities:

Severely Mentally Ill 96 0 27 69
Chronic
Substance Abuse 51
0 9 42
Other Disability 132 0 39 93
Total (unduplicated if
possible) 197 0 0 0
Table 22 – Special Population Served

CAPER 35
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-70 – ESG 91.520(g) - Assistance Provided and Outcomes

8. Shelter Utilization
Number of New Units – Rehabbed 0
Number of New Units – Conversion 0
Total Number of bed - nights available 0
Total Number of bed - nights provided 0
Capacity Utilization 0
Table 23 – Shelter Capacity

9. Project Outcomes Data measured under the performance standards developed in consultation with the CoC(s)
The City’s ESG program is designed to complement the Monterey County Continuum of Care system, focusing on homeless prevention, rapid re-housing, and providing emergency shelters and essential services.

To further enhance the City’s ability to meeting the outcome and performance goals in the Continuum of Care Strategy, the City is taking the lead in the implementation of State ESG funds.

CAPER 36
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-75 – Expenditures

11. Expenditures
11a. ESG Expenditures for Homelessness Prevention
Dollar Amount of Expenditures in Program Year
2022 2023 2024
Expenditures for Rental Assistance 0 0 0
Expenditures for Housing Relocation and
Stabilization Services - Financial Assistance 0 0 0
Expenditures for Housing Relocation & Stabilization
Services - Services 0 0 0
Expenditures for Homeless Prevention under
Emergency Shelter Grants Program 0 0 0
Subtotal Homelessness Prevention 0 0 0
Table 24 – ESG Expenditures for Homelessness Prevention

11b. ESG Expenditures for Rapid Re-Housing
Dollar Amount of Expenditures in Program Year
2022 2023 2024
Expenditures for Rental Assistance 0 0 0
Expenditures for Housing Relocation and
Stabilization Services - Financial Assistance 0 0 0
Expenditures for Housing Relocation & Stabilization
Services - Services 0 0 0
Expenditures for Homeless Assistance under
Emergency Shelter Grants Program 0 0 0
Subtotal Rapid Re-Housing 0 0 0
Table 25 – ESG Expenditures for Rapid Re-Housing

11c. ESG Expenditures for Emergency Shelter
Dollar Amount of Expenditures in Program Year
2022 2023 2024
Essential Services 0 0 0
Operations 0 0 0
Renovation 0 0 0
Major Rehab 0 0 0
Conversion 0 0 0
Subtotal 0 0 0
Table 26 – ESG Expenditures for Emergency Shelter

CAPER 37
OMB Control No: 2506-0117 (exp. 07/31/2015)

11d. Other Grant Expenditures
Dollar Amount of Expenditures in Program Year
2022 2023 2024
Street Outreach 0 0 0
HMIS 0 0 0
Administration 0 0 0
Subtotal 0 0 0
Table 27 - Other Grant Expenditures

11e. Total ESG Grant Funds
Total ESG Funds Expended 2022 2023 2024
0 0 0
Table 28 - Total ESG Funds Expended

11f. Match Source
2022 2023 2024
Other Non-ESG HUD Funds 0 0 0
Other Federal Funds 0 0 0
State Government 0 0 0
Local Government 0 0 0
Private Funds 0 0 0
Other 0 0 0
Fees 0 0 0
Program Income 0 0 0
Total Match Amount 0 0 0
Table 29 - Other Funds Expended on Eligible ESG Activities

11g. Total
Total Amount of Funds
Expended on ESG
Activities
2022 2023 2024
0 0 0
Table 30 - Total Amount of Funds Expended on ESG Activities

CAPER A-1
OMB Control No: 2506-0117 (exp. 07/31/2015)
Attachment A: Public Participation
Public Hearing and Summary of Comments

Public Hearing- September 9, 2025, at 4:00PM

CAPER B-1
OMB Control No: 2506-0117
Attachment B: Monitoring Procedures

Program Monitoring and Compliance Overview
The City Housing Division maintains accurate program and financial records for all community development activities, including housing and Emergency Solutions Grant (ESG) initiatives. ESG and CDBG -funded public service activities are continuously monitored. Documentation, including activity reports, must accompany all payment requests. All loan servicing functions- such as pay-offs, partial payments, subordinations, annual affidavits – related to the City’s loan portfolio are managed in-house using City Data Services (CDS) interactive software system. CDS is also used for monitoring and servicing functions including monthly, quarterly, annually activity reports, invoices, inspections, progress payments, loan payoffs and audit confirmations.

Labor Standards Compliance
The City’s Labor Compliance Officer, along with contracted consultants, oversee compliance with federal labor standards requirements (e.g., Davis-Bacon) for all Capital Improvement Projects (CIPs) funded with CDBG. Division staff also monitor labor compliance for all other CDBG and HOME-assisted projects, from contract drafting and pre - construction meetings through contractor submittals and project close-out. In some cases, qualified subrecipients such as HACM and CHISPA manage labor compliance internally or through contracted consultants.

Memorandum of Record (MOR) Process
To ensure program compliance for federally assisted Capital Improvement Projects (CIPs), the City executes a Memorandum of Record (MOR) with other departments receiving CDBG allocations. The MOR serves as an alternate to a formal funding agreement. Since its implementation, compliance issues have decreased, and successful compliance outcomes have increased. Departments such as Public Works are required to submit reports via CDS, and the Housing Division conducts monthly and quarterly desk reviews and attends construction meetings throughout the project lifecycle.

The MOR has been enhanced to include language requiring timely report submission, aiding in early detection of project impediments that could adversely affect the CDBG Timeliness Ratio. Additional provisions address compliance with 24 CFR Part 570.505 regarding real property acquired or improved by the City with CDBG funds in excess of $25,000 and Change of Use requirements for all Public Facilities & Improvements under §570.201(c). Monitoring efforts focus on alignment with the Consolidated Plan, Housing Element, and City Council Goals. Data collected informs performance evaluation, policy revisions, and required reports.

Monitoring Consolidated Plan and HUD Program C omplia
nce: Program compliance is analyzed and evaluated
during the Annual Action Plan development and any proposed amendments. In FY 2024-25, the City self-directed the allocation of CDBG, HOME, and ESG funds. Amendments to current or prior Action Plans are reviewed for compliance before proceeding with a substantial amendment. All funding agreements include deadlines for timely fund usage.

Subrecipient funding agreements are drafted to ensure alignment with federal regulations , OMB guidance, and the approved Action Plan. Division staff continue to monitor departmental performance using the MOR process.

Compliance with Housing Standa rds: Housing Division staff conduct site visits following construction or rehabilitation to ensure compliance with housing standards. Recipients of deferred payment rehabilitation loans are evaluated every five years to assess continued eligibility and determine whether loans should remain deferred or convert to amortized payments. This includes site inspections and financial eligibility reviews. Desk monitoring helps determine appropriate intervals for future site visits. Most major projects also undergo rigorous monitoring due to financing from other sources such as federal tax credits and state funds.

The transitioning to CDS for mul
ti-family project reporting was completed in FY 2013-14. CDS tracks CDBG and HOME funded projects from award through construction and into annual reporting. Projects remain active in the system until the affordability period expires. This centralized system improves data collection and compliance review. City continue working with CDS database programmers to ensure accurate tracking of income and rent restrictions, which can be complex due to overlapping requirements from programs like the Inclusionary Housing Program and Housing

CAPER B-2
OMB Control No: 2506-0117
Successor Agency (HSA). In FY 2023 -24, system updates were implemented to improve compliance across all affordable housing projects.

Reporting Requirements
City staff enforce revised reporting policies for all CDBG and HOME projects. Reporting is conducted through CDS on an annual, quarterly, or monthly basis. Grantees submit Quarterly Progress Reports (QPR) for the following periods:

Period 1- July 1 to September 30; Period 2-October 1 to December 31; Period 3- January 1 to March 31; and Period 4-April 1 to June 30. At the end of the fiscal year, grantees must also submit an Annual Project Narrative.

First-Time Homebuyer Program Monitoring
Although the City is not currently offering new assistance through the First-Time Homebuyer Program (FTHB) , active participants are monitored to ensure properties are used as primary residence, hazard insurance is maintained, and property taxes are current. Additional monitoring occurs during homeowners’ consultation regarding refinancing, subordination, or loan payoff. Staff verify that provided information matches project file.

Deferred Rehabilitation Loan Monitoring
The City has developed a plan to monitor deferred rehabilitation loans every five years, as stipulated in loan agreement.

Monitoring includes verification of continued eligibility, primary residence status, insurance coverage, and property tax payments. CDS is used to notify staff when loans are due for review.

Public Services: Staff p repare an Annual Monitoring Plan to track progress, accomplishments, and compliance with HUD regulations. Monitoring of program rules is an ongoing activity conducted through detailed reviews of monthly and quarterly reimbursement requests, activity reports, and expenditure rates.

Each year, staff compl ete a Risk Assessment for every subrecipient. In most cases, this followed by a Desk Review Monitoring using two purpose-built checklists. The Desk Review draws on documentation in the agency’s file as well as materials submitted during the application process (e.g., annual agency audit), since most subrecipients apply for funding for the following fiscal year. Staff also requests copies of outreach materials and application forms to assess compliance with accommodations for Persons with Limited English Proficiency.

Monitoring standards are based on HUD’s CDBG forms, including the “Checklist for On -site Monitoring of a Subrecipient” found in the “Managing CDBG, A Guidebook for Grantees on Subrecipient Oversight”, as well as the City of Salinas' CDBG Desk Guide and ESG Manual. Forms used during monitoring visit are drawn from the “CPD Grantee Monitoring Handbook” under CDBG Entitlement , depending on the type of activity being reviewed. Prior to site visit, staff notify the agency of potential dates and request access to program documentation, which may include (but is not limited to): payroll ledger s, employee timecards, receipts for claimed expenses, the most recent financial audit, personnel policies, equal opportunity policies, case files, and client files supporting reported data for Salinas clients (as reflected in Monthly and Quarterly Activity Data Reports). Following the monitoring visit, staff issue a follow -up letter summarizing the results. If any issues or signs of noncompliance are identified, they are discussed in detail with the program manager or executive director during the exit conference to support corrective action and ensure compliance.

Currently, there have been no findings for any agency. Staff are presently in the follow-up phase of the onsite monitoring process.

CDBG - Public Facilities: Pu blic Facility Improvement Projects, once completed, are required to annually submit an “Annual Data Collection Form” designed to capture service data such as the total number of direct beneficiaries, the race and ethnicity of each beneficiary, and all data required under HUD’s Community Planning and Development Performance Measurement System. The City’s Housing staff has transitioned all active projects to the CDS website, streamlining the reporting process and enhancing the database of funded projects. As in previous reporting cycles, data continues to be collected on a monthly , quarterly and annual basis. Upon receipt , staff review submissions to ensure compliance with applicable national objectives.

CDBG - Capital Improvement Projects: Staf f continues to monitor projects throughout the design phase, bid opening, construction, completion phase to ensure compliance with all applicable federal provisions , including Davis-Bacon, Minority Business Enterprise/Women Business Enterprise, Section 3, Executive Order 11246, Executive Order 11063,

CAPER B-3
OMB Control No: 2506-0117
and Title 24 CFR Part 85. The City of Salinas regularly revises and enhances its monitoring tools to support compliance during these phases. These tools include the Federal Labor Compliance Checklist , Contractor and Subcontractor Compliance Worksheet , Quarterly Progress Report, and consistent monthly or bi -weekly correspondence with subrecipient or the assigned City Construction Inspector. Additionally, the City continues to review and update its standard CDBG Bid Specification Package to ensure all applicable federal forms and provisions remain to current. The City is committed to evaluating existing processes and exploring improved methods for maintaining compliance with federal requirements. The current system has significantly reduced the amount of staff time previously needed to achieve compliance. As noted earlier, labor compliance in Capital Improvement Projects remains a top priority for the City.

CAPER C-1
OMB Control No: 2506-0117
Attachment C: IDIS Report – PR 26
The City’s PR 26 – CDBG Financial Summary Report is attached on the following pages.

CAPER D-1
OMB Control No: 2506-0117 (exp. 07/31/2015)
Attachment D: CAPER Resolution
CAPER City resolution approved by City Council on September 23, 2025, copy is attached on the following pages.

CAPER E-1
OMB Control No: 2506-0117 (exp. 07/31/2015)
Attachment E: SAGE Report Overview
SAGE Report overview is attached on the following pages.

HUD Consolidated
Annual Performance
Report for FY 2024-25
September 23,2025
City Council
Vincent Montgomery,
Planning Manager
Community Development
Department – Housing
Division
Executive Summary
City is a HUD entitlement jurisdiction:
◦ Community Development Block Grant (CDBG and CDBG-CV)
◦ HOME Investment Partnerships Program (HOME)
◦ HOME American Rescue Plan (HOME-ARP)
◦ Emergency Solutions Grants (ESG)
CAPER is an annual assessment of all activities and accomplishments ◦ FY 2024-25 Annual Action Plan (AAP)
◦ FY 2020-24 Consolidated Plan (Con Plan)
HUD Submission Deadline: September 28, 2025
Background
HUD Citizen Participation Plan
◦ Minimum 15-day public comment period September 8, 2025 – September 23, 2025 ◦ Notices published in The Monterey Herald on September 7, 2025 ◦ Draft CAPER available for public view
◦ City website
◦ Housing Distribution Group Email List
◦ In-person at CDD offices, City Hall, City Libraries
◦ Email request
◦ Public Hearing: City Council Meeting - 4:00 p.m. September 23, 2025 FY 2024-25 HUD FUNDING AND EXPENDITURES
Program Total Available
Funding* Expenditures
CDBG $7,363,573 $2,997,946
CDBG-CV $226,432 $214,977
HOME $4,046,658 $233,199
HOME-ARP $2,918,774 $180,239
ESG $397,942 $373,026
Total $14,953,379 $3,999,387
* Includes funding from previous Fiscal Years
Sherwood Recreation Center
Early Childhood Development Center

FY 2024-25 CDBG Program
Agency Funding Category Funding Amount Expenditures Outcomes City of Salinas
Program
Administration
(20% Grant & PI)
$436,170 $428,108 N/A
City of Salinas **
Alisal Union School District Public Facility $6,323,120* $2,127,958 Public Facilit y
1 Complete
4 Ongoing
Salinas Outreach and Response
Team (SORT)
Eden Council for Hope and
Opportunity (ECHO)
Public Service $474,833 $441,880 226 Households
* Includes funding from previous fiscal years / ** Five Public Facility Projects managed by the City FY 2024-25 CDBG-CV
Agency Funding
Category
Funding
Amount * Expenditures Outcomes
City of Salinas
Program
Administration
(20% )
$38,768 $34,446 N/A
City of Salinas -
Housing Information, Referral
Services & Fair Housing
Economic Development
Technical Assistance
Public Service $187,664
$180,531 54 Households
166 Businesses
*Includes funding from prior fiscal years
FY 2024-25 HOME
Agency Funding Category Funding
Amount* Expenditures Outcomes
City of Salinas Program
Administration $327,656 $233,198 N/A
To be committed in the
future Housing $3,719,002
$0 TBD
*Includes funding from prior fiscal years
FY 2024-25 HOME-ARP
Agency Funding Category Available Funding Expenditures Outcome City of Salinas* Program
Administration $437,816 $180,239 N/A
TBD TBD $2,480,958 $0 TBD
* HOME-ARP Allocation Plan was approved by HUD on May 2023 FY 2024-25 ESG Program
Agency Funding
Category
Funding
Amount * Expenditures Outcomes
City of Salinas
Program
Administration
(7.5% of Grant)
$29,073 $16,923 N/A
City of Salinas (SORT)
Community Homeless
Solutions (Rapid Re-Housing)
Public Service $368,869 $356,103 197 Households
*Includes funding from prior fiscal years
CEQA Consideration
The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).

Strategic Plan Initiative
o Economic Development
o Housing
o Infrastructure
o Youth and Seniors
Fiscal and Sustainability Impact
HUD provides Federal Funds directly to the City, therefore there is no impact to the General Fund.

Recommendation
It is recommended that City
Council approve a resolution
affirming the Fiscal Year 2024-25
Consolidated Annual Performance
and Evaluation Report and
authorize its submittal to the
United States Department of
Housing and Urban Development.

Questions?
For more information, contact Housing Division
(831) 758-7334
https://www.cityofsalinas.org/Your-Government/Departments/Community-Development City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-363, Version: 1
Public Hearing for Sanitary Sewer Rate Increase Adoption Approve a Resolution adopting the Sanitary Sewer Rates for 2025-2030 based on the Sewer Rate Schedule, provided there is no majority protest against the proposed sewer rates.

City of Salinas Printed on 9/19/2025Page 1 of 1
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CITY OF SALINAS

CITY COUNCIL STAFF REPORT

DATE: SEPTEMBER 23, 2025
DEPARTMENT: PUBLIC WORKS DEPARTMENT
FROM: DAVID JACOBS, PUBLIC WORKS DIRECTOR

SELINA ANDREWS, FINANCE DIRECTOR
BY: ADRIANA ROBLES, CITY ENGINEER
TITLE: PUBLIC HEARING FOR SANITARY SEWER RATE INCREASE

ADOPTION

RECOMMENDED MOTION:

A motion to approve a Resolution adopting the Sanitary Sewer Rates for 2025-2030 based on the Sewer Rate Schedule, provided there is no majority protest against the proposed sewer rates.

EXECUTIVE SUMMARY:

On July 1, 2025, City Council received an updated Sewer Rate Study and Sewer Rate Schedule and public hearing notices were distributed in accordance with Proposition 218. A public hearing was set for the proposed sewer rate increase for September 23, 2025. A total of 34,537 public hearing notices were mailed to property owners and ratepayers. Monterey One Water reports a total of 31,903 Salinas ratepayers1. If a majority of the City’s sewer ratepayers (50%+1) or 15,952 Salinas ratepayers provide written protests to the City Clerk by the end of the Public Hearing, the City Council cannot move forward with the recommended motion. Otherwise, if approved the new sewer rates will go into effect on October 1, 2025.

BACKGROUND:

The City of Salinas owns and operates a municipal sanitary sewer system (“sewer system”) that services residents and businesses within its service area. The sanitary sewer system has a service area of approximately 12,430 acres, with over 280 miles of gravity sewer mains and eleven (11) lift stations2 that convey sewage flows to the Regional Wastewater Trea tment Plant, operated by Monterey One Water (“M1W”). M1W collects fees for the treatment of the sanitary sewage and their fees are adjusted annually. M1W fees are separate from the rates collected for the City through M1W. M1W currently collects $50.95 for their wastewater treatment and $5.45 for the City of Salinas’ sanitary sewer rate.

In 2011, a Sanitary Sewer Master Plan was developed and the following year, a rate study was prepared that increased sewer rates to $5.45 per month for residential users or equivalent dwelling

1 Ratepayers include property owners and ratepaying tenants. 2 Lift Station. In sanitary sewer systems, lift stations pump sewage from lower elevations to higher elevations.

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unit (EDU). Sewer rates are used by the City of Salinas to provide the service required to maintain the City’s sanitary sewer system (pipes, manholes, lift stations, and equipment). Sewer rates fund the entirety of the wastewater enterprise fund, with the exception of payments of impact fees for new development as summarized in this staff report. The wastewater enterprise fund pays for the sanitary sewer system, staff, supplies, electricity and everything needed to keep the sanitary sewer system within the City of Salinas operational. The City’s sanitary sewer rate has not changed since 2012. Over several years, the wastewater enterprise fund has had a funding shortfall. This has meant that necessary infra structure repairs and upgrades have not been financially possible, leading to system failures and costly emergency repairs. Investment is required to meet regulatory mandates and to prevent additional untreated sewage discharges.

In February 2021, staff retained Wallace Group to update the Sanitary Sewer Master Plan (Resolution No. 22051). The proposed scope of work for the Sanitary Sewer Master Plan Update (SSMP) included document review , data collection, field surveys, comprehensive lift station assessment, in -line sewer flow monitoring, wastewater flow project ions, development and calibration of a hydraulic sewer model to identify collection system deficiencies for existing, and future build-out conditions and development of a Sanitary Sewer Capital Improvement Program.

On May 2, 2023, through Resolution No. 22648, City Council adopted the Salinas Sanitary Sewer Master Plan Update. The SSMP identified existing hydraulic deficiencies, operation and maintenance repairs, and lift station upgrades required to keep the existing sanitary sewer system operational. The SSMP estimates sewage flows at 10.46 million gallons per day from the existing sanitary sewer system. Required maintenance repairs and existing hydraulic deficiencies were ranked based on priority. Costs for maintenance repairs and fixing existing hydraulic deficiencies are funded by the City’s rate payer fees. The SSMP estimates an additional 2.33 million gallons per day of sewage flows from the North of Boronda Future Growth Area (FGA) will be added to the existing system at build-out conditions. This will require upsizing the existing system to meet the additional demand. Costs to upsize the sewer system are the developers’ responsibility. Several sanitary sewer mains require both repairs and upsizing to meet the anticipated future conditions.

In these cases, the cost responsibilities are shared between the ra te payers and the developers at varying percentages depending on the condition of the sewer system.

On September 24, 2024, City Council approved an amendment to the sanitary sewer impact fee (Resolution No. 23100) . Impact fees are paid by developers to o ffset the impacts from development to the existing system . A nexus study prepared by Wallace’s consultant, DTA, provided the justification for the adjustment to the impact fee to ensure that developers were covering the full cost of their fair share responsibilities to upsize sanitary sewer mains as identified in SSMP.

On April 23, 2024, an amendment to Wallace Group’s contract was approved by City Council (Resolution No. 22947) allowing for the commencement of a sewer rate study (“Study”). Wallace Group partnered with DTA to evaluate potential rate structures and provide recommendations on how to address funding gaps for sanitary sewer system repairs, upgrades and future needs.

The City’s current sanitary sewer rate of $5.45 per residential unit or equivalent dwelling unit (EDU) is intended to cover the City’s annual operation and maintenance (O&M) costs, as well as servicing existing debt obligations , but it does not. The City’s sanitary sewer enterprise fund ’s expected revenue and annual budget is projected to experience a shortfall of approximately Page | 3
$335,000 for FY 2024-25 and will not meet the required 125% debt service coverage requirement on the existing bonds . In addition, the current budget does not include capital improvements required for system replacements and upgrades. The Study estimates a total of $114 .8 million is required to make the necessary high priority improvements to the sewer system over the next ten years. The Study incorporated the revenue requirements and calculated the new sewer rates in compliance with Proposition 218 requirements. An increase to $16.35 per EDU per month with a 2% annual escalation rate is recommended for the next five years.

The financial model3, prepared by DTA, looks at the financial needs to keep the system operational (repairs, staffing and equipment) along with capital improvements outlined in the SSMP and debt obligations. Bonding is anticipated during years 2, 5, and 8 of the ten-year study period totaling $77.6 million of bond proceeds to be used along with the estimated $3 7.1 million of rate fees to cover the required $114.8 million for capital improvement projects.

At the March 11, 2025 City Council meeting and preceding Finance Committee meeting, staff shared that the City received a credit rating downgrade for its outstanding sanitary sewer system revenue debt. The downgrade was a function of decreasing financial health of the sanitary sewer enterprise fund primarily because of revenue increases not keeping up with the operating costs of the sewer collection system. Without increased sewer service rates, the City will not be able to fund scheduled repairs, identified capital improvement projects or meet the outstanding bond debt service covenants after FY 2024-25. If this happens, this may result in the bonds being called which may require the City having to pay off the remaining balance of $12,180,000.

Past Actions

On March 11, 2025, the City Council, following the recommendation of the Finance Committee, accepted the findings of the Study and recommended an increase to the sewer rate to $16.35 with a 2% annual escalation rate.

On April 8, 2025, staff presented the draft Study and Ra te Schedule to the Finance Committee.

The Finance Committee unanimously recommended approval of the Study and Rate Schedule by the City Council.

On April 22, 2025 , the City Council approved a resolution accepting the Sewer Rate Study and approving the Rate Schedule and directed staff to distribute Public Notices for the public hearing set for June 17, 2025. Following distribution of the public hearing notices , inaccuracies were identified in some rates and rate categories.

On June 17, 2025 staff identified the inaccuracies in the Rate Schedule to the City Council and set a new date to present the updated Sewer Rate Study (see Attachment 1) and Rate Schedule. At that same meeting, the City Council approved a resolution establishing the procedures the City will follow for considering and responding to “objections” to the proposed rates in accordance with new law known as AB 2257 (Government Code sections 53759.1 and 53759.2). These procedures are in addition to the requirements under Proposition 218 for the City to also consider “protests” to the proposed rates.

3 A financial model is a tool that is used to forecast future financial performance.

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On July 1, 2025, City Council directed staff to distribute Proposition 218 Public Hearing Notices (see Attachment 2) and set a hearing date of September 23, 2025. Notices were mailed on July 11, 2025. Allowing sufficient time for in excess of the required 45-day notice outlined in Proposition 218. A total of 34,537 Public Hearing N otices were mailed to property owners and sewer ratepayers.

On August 12, 2025, the staff presented the S&P Global Ratings Update to the Finance Committee indicating the City’s downgrades (December 23, 2024 from AA- to BBB+ and March 21, 2025 from BBB+ to BBB -) were a result of weak financial performance in the sanitary sewer (wastewater) enterprise fund. It was also reported that S&P revised its outlook to negative from stable due to the City’s inadequate sewer rate and potential sunset of Measure G.

Public Outreach

Staff is committed to helping the public understand the proposed sewer rate increases. Information is available on the City’s Public 2025 Sewer Rate Study website and at City-owned facilities including City Hall, Permit Center, Public Works Yard, Steinbeck Library, Cesar Chavez Library, El Gabilan Library , Steinbeck Recreation Center, Breadbox Re creation Center. Other facilities, not owned by the City which were provided informational flyers include . These facilities include Hartnell College (various facilities), Martin Luther King Jr Family Resource Center , and various coffee shops and restaurants. The topic of the sewer rate increases was included in the SalinasNOW podcast.

Staff has responded to numerous questions in person, by phone and email. A community meeting focusing on the sanitary sewer system and proposed rat e increases was held on July 31, at the Breadbox Recreation Center. Staff also provided information at the District 1 Community Meeting on August 21, City Council meetings on August 26 and September 9, Community Composting Workshop on September 13, El Grito Festival on September 14 and a Community Meeting on September 16. Various targeted emails were sent to community members including: the Salinas Chamber of Commerce, SUBA, Building Healthy Communities, MILPA, Center for Community Advocacy, Centro Binacional Para El Desarrollo Indígena Oaxaqueño, AVP Steering Committee Members, Clean California Sidewalk Art Steering Committee Members, various community groups, and other prominent community members.

Public service announcements were sent to various English and Spanish radio stations that service Salinas.

Proposition 218 and AB 2257

Proposition 218 requires a public hearing to be held for the proposed rate increase. Upon receiving direction from City Council at the July 1 meeting, public hearing notices were mailed on July 11, 2025, for a public hearing proposed to be held on September 23, 2025, City Council meeting.

At the public hearing, the City Council will consider any written objections that are received by the City Clerk by September 23, 2025, at 4:00 P.M. (45 days after the public hearing notice) in accordance with AB 2257. Under this process, property owners have the right to submit a written objection identifying a substantive reason that the proposed rates do not comply with Proposition 218, and for each timely written objection, City staff will prepare a substantive written response.

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All written objections and responses will be presented to City Council for consideration prior to taking action on the proposed rates.

This public hearing will also allow rate payers who oppose the rate increase to submit a written “protest” under Proposition 218. If rate payers representing less than 50% of the parcels served by the City’s sewer system submit written protests, then the City Council will b e authorized to approve the proposed sewer rate increases to take effect on October 1, 2025 (See Public Hearing Notice, Exhibit C to the Resolution).

Written Protests and Written Objections

The City mailed 34,537 Public Hearing N otices in July 2025 to property owners and sewer ratepayers in compliance with Prop osition 218. Under Prop osition 218, property owners and/or ratepayers directly responsible for the payment of the fee subject to the proposed rate increase may submit a written protest or written objection against the proposed rate increases. The protest must be submitted in writing to the City Clerk on or before the September 23, 2025 public hearing, identifying what is being protested, and contain ing the service address. The party signing the protest must be listed on the account as the person responsible for payment of the sewer bill or the property owner. In the event that a protest is submitted by the owner and by the tenant responsible for payment of the sewer bill, then one valid protest is counted for the account. If written protests are filed by a majority (50% + 1), the proposed sewer rates may not be imposed. A majority of the City’s 31,903 sewer ratepayers is 15,952.

As of September 18, 2025, at 10:00 AM, a total of 24 written protests or written objections were received by the Office of the City Clerk. Of these, two were duplicates and three were unverifiable.

Where one protest identifying the multiple parcels was submitted, the single protest will be counted for each of the identified parcels. All protests will need to be validated regarding property ownership and duplicate addresses. The City Clerk will provide an updated summary of the protests received at the conclusion of the public hearing on September 23, 2025

A total of 24 written protests and “written objections ” were received ; however, most of the submissions are not “written objections” meeting the requirements of AB 2257 . Seven written objections were determined to identify a substantive issue consistent with AB 2257 for which the City is providing supplemental information . Each of the s even written objections is listed in Attachment 2 to this Report, followed by the City’s response s which are included as Attachment 3 to this Report. Attachments 2 and 3, attached hereto, are incorporated herein by this reference.

Though not specifically identified as written objections several letters received identified a financial hardship for ratepayers. The City will be presenting a Sanitary Sewer Payment Assistance Program to be considered by City Council that will provide financial assistance to qualifying ratepayers. Confusion is also indicated in the amount charged by Monterey One Water and the City sewer charge. Although billing is provided by Monterey One Water, of the $118.90 bimonthly residential bill, only $10.90 (or $5.45 per month) is currently collected by the City of Salinas.

CEQA CONSIDERATION:

This action is n ot subject to the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code Section 21080(b)(8), and California Code of Regulations Section 15273 Page | 6
(of the “CEQA Regulations”) because it establishes, modifies, structures, or restructure s, and approves rates and charges for the purposes of: (1) meeting operating expenses; (2) purchasing supplies, equipment and materials; (3) meeting financial requirements; and (4) obtaining funds for capital projects necessary to maintain service within existing service area.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

STRATEGIC PLAN INITIATIVE:

Updating sewer rates is consistent with the Council values of Fiscal Responsibility, Service and Responsiveness and Council Goals and Strategies of Economic Development, Housing, Infrastructure, and Public Safety by investing in existing facilities and infrastructure and by providing adequate funding for improvement needed to allow for growth.

DEPARTMENTAL COORDINATION:

Public Works staff have consulted w ith other firms including DTA as sewer rate consultant, Wallace Group as facilities engineer, and NHA Advisors as municipal advisor. Public Works has worked closely with the Finance Department through review of the financial model . Staff from various branches of Public Works (CIP, Development, GIS, and Administration) have assistance in the review and verification of addresses, development, printing and delivery of the public. The City Clerk’s office has received protests and published the notice in the newspaper. Outreach has been a wider team effort which has included Public Works, the PIO team , and Library and Community Services. Review of the public hearing notice and written objection responses was provide by the Legal Department.

FISCAL AND SUSTAINABILITY IMPACT:

There is no direct fiscal impact associated with accepting the updated Sewer Rate Study, approving the revised Sewer Rate Schedule, and directing staff to distribute Proposition 218 Public Hearing Notices for proposed sanitary sewer rate increases.

Imposing and updating sewer service rates allows the City to be fiscally responsible and sustainable while addressing immediate critical infrastructure and future growth needs.

ATTACHMENTS:

Resolution (with Exhibits A, B, and C)
Exhibit A: City of Salinas Rate Study, Appendix E (Sewer Rate Schedule) Exhibit B: Salinas Sanitary Sewer Service Area
Exhibit C: Public Hearing Notice
Attachment 1 – Sewer Rate Study
Attachment 2 – Written Objections
Attachment 3 - City of Salinas Responses to Written Objections Page | 7
Attachment 4 – Monterey One Water 2021 Wastewater Treatment Rate Update to 2017 Comprehensive Rate & Fee Study

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

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

ESTABLISHING SEWER SERVICE CHARGES FOR SEWER COLLECTION

SERVICES, WITH ANNUAL UPDATES

WHEREAS, the City of Sa linas (“City”) provides sewer collection service to property owners (who may also be referred to as “owners”) within the City’s service area (as described on Exhibit “B,” attached hereto and incorporated by reference ). As described in the City’s Sanitary Sewer Master Plan Update (“SSMP”), approved by City Council on May 2, 2023 (Resolution No. 22648), these sewer collection services include collection pipelines , force mains, and sewer lift stations that convey wastewater to the Monterey One Water (“M1W” ) for treatment. M1W is a joint powers authority formerly known as Monterey Regional Pollution Control Agency with member agencies that include the City of Salinas, the County of Monterey, and other incorporated municipalities and special districts; and

WHEREAS, the Cit y is authorized to establish fees, rates, and charges for the sewer services provided to each property owner in accordance with Health and Safety Code Sections 5470-5474.10, and “Proposition 218” (California Constitution Article XIII D, Section 6; as it is implemented by the Legislature at Government Code sections 53750 – 53759.2; and as it has been interpreted by judicial decisions).The City refers to those fees, rates, and charges as sewer service charges or sewer rates (as used herein, the phrases “sewer service charges” or and “sewer rates” may be used interchangeably); and

WHEREAS, the purpose of the sewer rates is to ensure that adequate funding is provided to protect the public health, safety and general welfare through the provision of a reliable an d adequate sewer system that meets current and anticipated demands to serve the owners and customers of the City; and

WHEREAS, the City undertook an analysis of previously established sewer rates, as documented in the City of Salinas Sewer Rate Study prepared by the City’s rate consultant, DTA, dated June 24, 2025 (“Rate Study”), and determined that proposed changes to the City’s sewer rates are warranted in order to offset the City’s ongoing costs of providing sewer services to owners and customers. The Rate Study has been posted on the City’s website (www.salinas.gov/Your- Government/Departments/Public-Works/2025-Sanitary-Rate-Study) since July 2, 2025, and it is available for public review upon request; and

WHEREAS, On July 1 , 2025, the City of Sa linas City Council (“City Council” or “Council”) approved Resolution No. 23296, by which the Council directed City staff to provide notice of a public hearing to consider the approval of sewe r rates in accordance with the requirements of Proposition 218, including implementation of the administrative remedies for owners to submit written objections to the sewer rates (in accordance with “AB 2257” codified at Government Code Sections 53759.1 and 53759.2); and

WHEREAS, on July 11, 2025, the City mailed the notice of public hearing (to be held on September 23, 2025) to all property owners receiving sewer service from the City, and posted the notice on its website at (www.salinas.gov/Your-Government/Departments/Public-Works/2025-

Sanitary-Rate-Study). The public hearing notice was also published in accordance with Government Code Sections 6062a, 54354.5, and 66016; and

WHEREAS, consistent with the notice of public hear ing, the public hearing was held on September 23, 2025, the City Council provided an opportunity for every interested person to comment on the proposed sewer rates, the Council considered all timely written protests from property owners and written respons es from City staff, and the Council determined that the proposed sewer rates comply with the requirements of Proposition 218 and proceeded to conduct the public hearing to consider timely written protests submitted prior to the close of public hearing; and

WHEREAS, the City Council determines, after having duly received and considered oral and documentary evidence concerning the necessity for the proposed sewer rates, that it is warranted and necessary to establish the sewer rates as set forth in this Resolution; and

WHEREAS, this Resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code Section 21080(b)(8), and California Code of Regulations Section 15273 (of the “CEQA Regulations”) because it establi shes, modifies, structures, or restructures, and approves rates and charges for the purposes of: (1) meeting operating expenses; (2) purchasing supplies, equipment and materials; (3) meeting financial requirements; and (4) obtaining funds for capital proj ects necessary to maintain service within existing service area.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Salinas does hereby find, determine, and resolve as follows:

SECTION 1. The City Council hereby approves the sewer rates set forth on “Exhibit A,” which is attached and incorporated by this reference. The sewer rates approved by this Resolution shall be implemented in accordance with Resolution Sections 2 and 3 . The sewer rate s are approved based on the following findings and determinations by the City Council:

A. After considering all timely written objections and written responses, the Rate Study and all evidence identified in this Resolution document the bases on which these sewer rates are approved, and there is no need to reduce, alter, or clarify the proposed sewer rates.

B. At the close of the public hearing on September 23, 2025, the City Council considered all timely written protests and determined that, from the total number of 31,903 parcels served by City sewer service, the owners of a majority of those parcels did not submit a written protest. Therefore, the City Council overruled all written protests against the proposed sewer rates, and the City may approve the sewer rates in accordance with California Constitution Article XIII D, Section 6(a)(2).

C. The Rate Study and all evidence identified in this Resolution document that the sewer rates comply with the substantive requirements of Proposition 218, as set forth at California Constitution Article XIII D, Section 6(b):

1. The revenues derived from the rates do not exceed the cost of providing sewer service to property owners or customers served by the City’s sewer service.

2. The revenues derived from rates are not, and shall not be, used for any other purpose other than meeting the costs of providing sewer service.

3. The amount of the rate imposed upon any parcel does not exceed the proportional cost of the sewer service provided to that parcel.

4. The revenues derived from rates are used for sewer services actually used by, or immediately available to, the person or owner of the property responsible for the payment of the rate.

5. No rate is imposed for general governmental services, such as police or fire, that is available to the public at large.

SECTION 2. Review of Sewer Rates. The City Manager, or designee, shall periodically, but not less than annually, review the sewer rates to determine whether revenues from such rates are meeting the actual cost of services and facilities necessary to deliver sewer service to the residential and non -residential parcels w ithin the City’s service area . If the City Manager determines that revenues are not adequate to meet costs, the City Manager shall recommend to the City Council a revised schedule of sewer rates in accordance with Proposition 218 and the processes described in this Resolution.

SECTION 3. Effective Date of Sewer Rates . The sewer rates per Equivalent Dwelling Unit (“EDU”) per month set forth on Table 1 of “Exhibit A” shall be effective October 1, 2025, for the rates identified in the column labeled “ 25-26.” Thereafter, the sewer rates shall be automatically updated on an annual basis each July 1, subject to the City providing a 30-day prior written notice in accordance with Government Code Section 53756, such that : (a) the rates in column “26-27” will be effective July 1, 2026; (b) the rates in column “ 27-28” will be effective July 1, 2027; (c) the rates in column “FY 2028-29” will be effective July 1, 2028; and (d) the rates in column “FY 29-30” will be effective July 1, 2029, and each July 1 thereafter.

A. The sewer rates are charged per “Equivalent Dwelling Unit” (“EDU”) allocated to each parcel.

B. The number of EDUs for each parcel is determined by the City Manager, or designee, based on: (1) the number of EDU’s per Billing Unit for each category of user identified on Appendix D of Exhibit “A” (with the resulting calculations of sewer rates per month set forth on Appendix E of Exhibit “A”) ; provided, however (2) for any category of user that is identified as a “special user,” the number of EDU’s shall be based on the actual flow per billing unit based on data from M1W. Since the City’s sewer collection system discharges to the M1W sewer conveyance and treatment system, the City intends to establish the number of EDU’s per parcel in a manner that is consistent with the analysis and approach taken by M1W. Since a single-family home user, with a flow of 150 gallons per day, is assigned one EDU, the number of EDU’s assigned to each other user shall be based on that proportion of one EDU per a flow of 150 gallons per day.

To the extent a particular user category is not identified on Appendixes D and E of Exhibit “A,”

the City Manager shall determine the number of EDUs based on the estimated amount of flow from similar users identified on Appendixes D and E of Exhibit “A” or information regarding the determination of flow by M1W.

SECTION 4: If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Resolution is for any reason held to be invalid or unconstitutional by the decis ion of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The Council hereby declares that it would have adopted this Resolution, and each section, subsection, subdivision, senten ce, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

PASSED AND APPROVED this 23rd day of September, 2025.

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

__________________________
Dennis Donohue, Mayor

ATTEST:

__________________________________
Patricia M. Barajas, City Clerk

Attachments:

Exhibit A: City of Salinas Rate Study, Appendix E (Sewer Rate Schedule) Exhibit B: Salinas Sanitary Sewer Service Area
Exhibit C: Public Hearing Notice

Exhibit A: City of Salinas Rate Study, Appendix E (Sewer Rate Schedule)

County Boronda
Bolsa Knolls
North
Boronda FGA
East FGA

North
Boronda FGA
East FGA
West Boronda
FGA
Southeast FGA

Ag-Industrial
CenterLegend
City Boundary
SSMPU Study Area
Salinas Ag-Industrial Center
Target Areas
Existing Sewer Service Area
Future Growth Area
Bolsa Knolls
County Boronda Area
NOTES:

ESRI BASEMAP.

WALLACE GROUP DID

NOT PERFORM BOUNDARY

SURVEY SERVICES FOR THIS
MAP. NOT A LEGAL DOCUMENT.

MAP PRODUCED FEBRUARY 2023.

SALINAS SEWER MASTER PLAN UPDATE
FIGURE 2-1

EXISTING SEWER SERVICE AREA

CIVIL ENGINEERING

CONSTRUCTION MANAGEMENT

LANDSCAPE ARCHITECTURE

MECHANICAL ENGINEERING

PLANNING

PUBLIC WORKS ADMINISTRATION

SURVEYING/GIS SOLUTIONS

WATER RESOURCES
612 CLARION COURT
SAN LUIS OBISPO, CA 93401
T 805 544-4011 F 805 544-4294
www.wallacegroup.us
1 inch = 5,000 feet
Exhibit B: Sanitary Sewer Service Area

Notice of Public Hearing to Consider Proposed Sanitary Sewer Rate Adoption Tuesday, September 23, 2025, at 4:00 p.m.

City Hall Rotunda at 200 Lincoln Ave, Salinas, CA 93901 In person or on Zoom.

NOTICE TO PROPERTY OWNERS AND RATEPAYERS
The City of Salinas (City) hereby notifies property owners and ratepayers of the proposed adjustments to sewer rates, and their right to object, protest, or provide comments to the City . This Notice is provided in accordance with California Constitution Article XIII D, Section 6 (Proposition 218). The Salinas City Council will consider the proposed rate adjustment at a Public Hearing at 4:00 p.m., Tuesday, September 23, 2025, in the City Hall Rotunda at 200 Lincoln Ave, Salinas, CA 93901.

Hearing impaired or TTY/TDD text telephone users may contact the City by dialing 711 for the California Relay Service (CRS) or by telephoning any other service providers’ CRS telephone number.

All those interested are invited to appear at the time and place of the Public Hearing on September 23, 2025, to give oral or written comments regarding the proposed rate adjustments. The City Council will hear and consider oral testimony and written materials submitted regarding proposed rate adjustments at the Public Hearing. The City Council has the authority to adjust the proposed sewer rate changes in response to oral testimony and written materials submitted for consideration, provided any adjustments cannot increase rates beyond those proposed in this Notice.

If adopted by City Council, the proposed sewer rates described in this Notice will become effective on October 1, 2025, with annual adjustments each July 1st through 2029. The City will provide notice of any authorized annual adjustment to rates, not less than 30 days before the effective date of the adjustment, per Government Code Section 53756.

Maintaining Salinas’ Sanitary Sewer System

The City of Salinas must continually invest in its sanitary sewer system to maintain safe and reliable service.

The City’s source of revenue to cover the cost of providing those sewer services is through sewer rates, with every dollar from those rates going toward the operation, maintenance, repair, and improvement of the sewer system. Periodic evaluations and adjustments to the rates are necessary to address infrastructure needs, inflation and regulatory mandates. Responsible financial planning and appropriate funding are essential to maintaining and improving our sewer system.

The City’s Maintenance Division maintains approximately 280 miles of gravity pipelines in the sanitary sewer collection system and 11 sanitary sewer lift stations. The sewer system plays a vital role in safeguarding water quality and public health. The sewer system consists of underground pipes, manholes, lift stations, and other infrastructure that transport sewage from homes, businesses, and industries to the regional wastewater treatment plant, where it is treated and safely released back into the environment.

Exhibit C: Public Hearing Notice

R E V E N U E S A R E R E Q U I R E D TO M A I N T A I N AN D R E P A I R T H E S A N I T A R Y S E W E R

S Y S T E M
To ensure adequate revenue for maintaining, operating and improving the sanitary sewer system, the City commissioned a Rate Study. The Rate Study documents support for the proposed rates for each customer category, the basis upon which the rates were calculated, and the reasons for the rates to cover the cost of providing sewer services. The study estimates a total of $114.8 million is required to fund capital improvements. Funds will be provided through increased sewer rates and bonds.

The Rate Study is available online at https://www.cityofsalinas.org/Your-Government/Departments/Public- Works/Sanitary-Rate-Study-2025.

PROPOSED SEWER RATE INCREASES
The City is proposing five years of sewer rate increases, as set forth in Table 1 and Table 2:

Table 1: Proposed **Sewer Rate per Unit per Month
City
Code
Land Use Class (other
than Special Users) Unit
Sewer Rate per Unit per Month
FY
2025-26
FY
2026-27
FY
2027-28
FY
2028-29
FY
2029-30
001 Business/Government Location/Each Business ($ for
every 10 employees) $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 102 Residence Each Living Unit $ 16.35 $ 16.68 $ 17.01 $ 17.35 $ 17.70 105 Multi Residence - Apts Each Living Unit $ 16.35 $ 16.68 $ 17.01 $ 17.35 $ 17.70 107 Condominium Each Living Unit $ 16.35 $ 16.68 $ 17.01 $ 17.35 $ 17.70 109 Retirement Complex Each Living Unit $ 16.35 $ 16.68 $ 17.01 $ 17.35 $ 17.70 221 Hotel/Motel Each Room $ 7.19 $ 7.34 $ 7.48 $ 7.63 $ 7.79 222 Bed & Breakfast Each Room $ 4.69 $ 4.78 $ 4.88 $ 4.97 $ 5.07 231 Supermarket Location $ 69.54 $ 70.93 $ 72.35 $ 73.80 $ 75.27 241 Medical Each Licensed Physician $ 17.00 $ 17.34 $ 17.69 $ 18.04 $ 18.41 242 Dental Each Licensed Dentist $ 23.44 $ 23.90 $ 24.38 $ 24.87 $ 25.37 243 Rest Home/ Convalescent Each Bed of Licensed Capacity $ 4.69 $ 4.78 $ 4.88 $ 4.97 $ 5.07 244 Surgery Center/ General
Hospital Each Bed of Licensed Capacity $ 27.90 $ 28.46 $ 29.03 $ 29.61 $ 30.20 245 Animal Hospital Location/Each Licensed
Business $ 31.83 $ 32.46 $ 33.11 $ 33.78 $ 34.45
261 Restaurant - 1 Meal Each Restaurant Seat $ 0.65 $ 0.67 $ 0.68 $ 0.69 $ 0.71 262 Restaurant - 2 Meals Each Restaurant Seat $ 0.98 $ 1.00 $ 1.02 $ 1.04 $ 1.06 263 Restaurant - 3 Meals Each Restaurant Seat $ 1.85 $ 1.89 $ 1.93 $ 1.97 $ 2.01 264 Restaurant w/ Bar Each Restaurant Seat $ 1.85 $ 1.89 $ 1.93 $ 1.97 $ 2.01 265 Bar Location/Each Business $ 27.69 $ 28.24 $ 28.80 $ 29.38 $ 29.97 266 Night Club Location/Each Business $ 82.84 $ 84.50 $ 86.19 $ 87.91 $ 89.67 267 Take-Out Small 1 Cash Register or Checkout Line $ 30.85 $ 31.46 $ 32.09 $ 32.74 $ 33.39 268 Take-Out Medium 2 or 3 Cash Registers or
Checkout Lines $ 75.97 $ 77.49 $ 79.04 $ 80.62 $ 82.24
269 Take-Out Large 4 or More Cash Registers or
Checkout Lines $ 138.43 $ 141.20 $ 144.02 $ 146.90 $ 149.84 270 Bakery Location/Each Business $ 25.07 $ 25.57 $ 26.08 $ 26.60 $ 27.14 281 Theater Per Screen at Each Location $ 41.09 $ 41.91 $ 42.75 $ 43.61 $ 44.48 282 Bowling Center Location/Each Business $ 124.91 $ 127.41 $ 129.96 $ 132.56 $ 135.21 283 Gym - 500 Members $ for every 500 members $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 City
Code
Land Use Class (other
than Special Users) Unit
Sewer Rate per Unit per Month
FY
2025-26
FY
2026-27
FY
2027-28
FY
2028-29
FY
2029-30
292 School - Pre Grade 6 School Population $ 0.22 $ 0.22 $ 0.23 $ 0.23 $ 0.24 293 School - Grade 7 -College School Population $ 0.44 $ 0.44 $ 0.45 $ 0.46 $ 0.47 294 School - Boarding School Population $ 4.36 $ 4.45 $ 4.54 $ 4.63 $ 4.72 295 Instructional Facility Location/Each Business $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 296 Church - Small (1-100
Members) Per 100 members $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 297 Church - Large (> 100
Members) Per 100 members $ 25.51 $ 26.02 $ 26.54 $ 27.07 $ 27.61 301 Photo Developer / Printer $ for every 10 employees $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 311 Laboratory - 10 employees $ for every 10 employees $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 331 Garage Repair $ for every 10 employees $ 12.21 $ 12.45 $ 12.70 $ 12.96 $ 13.21 341 Paint Shop – 10 employees $ for every 10 employees $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 353 Dry Cleaner Location/Each Business $ 42.07 $ 42.92 $ 43.77 $ 44.65 $ 45.54 354 Laundromat Each Washing Machine $ 11.12 $ 11.34 $ 11.57 $ 11.80 $ 12.03

Table 2: Proposed **Sewer Rate per Month for Special Users City
Code
Land Use Class
(Special Users) Unit
Sewer Rate per Month
FY
2025-26
FY
2026-27
FY
2027-28
FY
2028-29
FY
2029-30
351 Industrial Laundry *Based on Flow (GPD x Sewer Rate) $0.109 $0.111 $0.113 $0.116 $0.118 352 Commercial Laundry *Based on Flow (GPD x Sewer Rate) $0.109 $0.111 $0.113 $0.116 $0.118 366 Car Wash *Based on Flow (GPD x Sewer Rate) $0.109 $0.111 $0.113 $0.116 $0.118 367 Truck/Bus Wash *Based on Flow (GPD x Sewer Rate) $0.109 $0.111 $0.113 $0.116 $0.118 401 Special User *Based on Flow (GPD x Sewer Rate) $0.109 $0.111 $0.113 $0.116 $0.118 403 Chemical Pesticides *Based on Flow (GPD x Sewer Rate) $0.109 $0.111 $0.113 $0.116 $0.118 405 Water Softener *Based on Flow (GPD x Sewer Rate) $0.109 $0.111 $0.113 $0.116 $0.118 406 Food Processor *Based on Flow (GPD x Sewer Rate) $0.109 $0.111 $0.113 $0.116 $0.118 407 Rec/Sports Facility *Based on Flow (GPD x Sewer Rate) $0.109 $0.111 $0.113 $0.116 $0.118 408 Inedible Renderer *Based on Flow (GPD x Sewer Rate) $0.109 $0.111 $0.113 $0.116 $0.118 410 Groundwater
Discharger *Based on Flow (GPD x Sewer Rate) $0.109 $0.111 $0.113 $0.116 $0.118 * The flow in gallons per day (“GPD”) is based on information provided by Monterey One Water (“M1W”), the public agency that treats the sewer that is collected by the City of Salinas.
** “Sewer Rate” equals the dollar rate in the relevant year for on Residential Living Unit, which is one equivalent dwelling unit (“EDU”).

SUBMITTING A PROTEST OR AN OBJECTION
A property owner has a right to submit to the City a written protest or a written objection to the proposed adjustment to sewer rates based on laws that are commonly referred to as “Proposition 218” (including California Constitution Article XIII D, Section 6; implementing legislation at Government Code sections 53750 through 53759.2, and judicial decisions interpreting those laws). The proposed increases in sewer rates are considered fees for “property-related services” under those laws.

HOW TO SUBMIT A WRITTEN PROTEST
Any property owner or rate-paying tenant has the right to protest the proposed sewer rates. The protest must be in writing, it must include the property service address and/or the assessor’s parcel number, the eligible individual’s name (property owner or tenant), a statement to the effect of “I protest the proposed sewer rate adjustments,” and an original signature. Written protests must only be submitted to the City by mail or personal delivery to: City of Salinas, City Clerk, 200 Lincoln Ave. Salinas, CA 93901. Telephone, e- mail, and fax protests will not be accepted.

All protests must be received by the City Council in writing before the conclusion of the Public Hearing .

Any protest received after the conclusion of the Public Hearing will not be accepted or considered. Any oral comments will not be counted as a protest. Only one written protest per affected property will be counted.

At the conclusion of the Public Hearing, the City Council will consider adopting the proposed rates and charges only if the City does not receive a “majority protest.” There is a “majority protest” if the City receives timely written protests from property owners or ratepayers representing a majority (50% +1) of the properties served by the City. If there is a majority protest, the City is prohibited by law from approving the updated sewer rates at that time.

EXHAUSTION OF ADMINISTRATIVE REMEDIES – HOW TO SUBMIT A WRITTEN OBJECTION Any property owner or rate-paying tenant has the right to submit a written objection to the proposed sewer rates. In order for a written objection to be timely and effective, it must comply with all of the following requirements:
• Written objections must be in writing and mailed or hand delivered to the City at: City of Salinas, City Clerk, 200 Lincoln Ave, Salinas CA, 93901. • The City Clerk must receive the written objections by no later than September 23, 2025, at 4:00 p.m.
• Written objections must include the following information:
o Objectors name, parcel number and/or service address. o A statement that the communication constitutes a written objection to the City’s proposed sewer rates.
o A description of the substance of the objection, with sufficient specificity to allow the City to respond in writing. The objection must state the specific grounds for concerns with the proposed sewer rates, and why they do not comply with Proposition 218 or other relevant law. The objection should include the desired resolution or outcome. A statement that the proposed sewer rates violate Proposition 218 without an explanation as to the basis of the claim are not sufficient to constitute a timely written objection.

At the Public Hearing, after considering all timely written objections and written responses prepared by City staff, the City Council will determine whether clarifications or further review or reduction or abandonment of the proposed sewer rates is warranted.

Limitations for Challenging Proposed Rates
You are hereby notified that, in order to file a judicial action or legal proceeding to challenge the proposed rates described in this Notice, you must file a timely written legal objection, and you must commence the action or proceeding within 120 days of the City’s approval of the rates.

Failure to submit a timely written legal objection bars any right to challenge the proposed rates through a judicial action or legal proceeding. (Government Code Section 53759.1(b).) There is a 120-day statute of limitations for judicially challenging the rates set forth in this Notice that runs from the date of the City action to approve the rates, and any legal action is limited to the issues raised in a timely legal objection. (Government Code Section 53759.) FO R MORE I N F O R M A T I O N:

Visit: https://www.cityofsalinas.org/Your-Government/Departments/Public-Works/Sanitary-Rate-Study-2025; or call (831) 758-7241; or email [email protected].

www.FinanceDTA.com
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds

CITY OF SALINAS

SEWER RATE STUDY
June 24, 2025
Attachment 1: City of Salinas Sewer Rate Study

www.FinanceDTA.com 18201 Von Karman Avenue, Suite 220
Irvine, CA 92612

CITY OF SALINAS

SEWER RATE STUDY
Prepared for:

City of Salinas
200 Lincoln Avenue
Salinas, CA 93901

TABLE

OF CONTENTS

SECTION PAGE
I EXECUTIVE SUMMARY ............................................ 1 II INTRODUCTION ..................................................... 3 A Purpose .................................................................. 3 B Proposition 218 .................................................... 3 C Approach ............................................................... 5 D Current Sewer System ........................................ 5 E Sewer Master Plan Update and CIP ................. 5
F Rate Study Organization .................................... 6 III REVENUE REQUIREMENTS ................................... 7 A Operations and Maintenance ........................... 7 B Capital Expenditures ........................................... 7 C Debt Service .......................................................... 8 D Reserve Requirements ........................................ 9 IV SEWER RATE ANALYSIS ....................................... 10 A Current Rate Structure ..................................... 10 B Proposed Rate Structure .................................. 10 C Equivalent Dwelling Units ............................... 10 D Model Considerations ....................................... 10 V IMPLEMENTATION OF RATES ........................... 12 VI CONCLUSION ........................................................ 13

APPENDICES

APPENDIX A SEWER RATE MODEL

APPENDIX B RATE MODEL ASSUMPTIONS

APPENDIX C HIGH PRIORITY PROJECT COST TABLES

APPENDIX D EDU SUMMARY
APPENDIX E 1O-YEAR RATE SUMMARY BY LAND USE

1 SECTION I

EXECUTIVE SUMMARY

City of Salinas June 24, 2025
Sewer Rate Study

www.FinanceDTA.com

I EXECUTIVE SUMMARY
The City of Salinas (the “City”) Wastewater Division of the Public Works Department, hereinafter referred to as the “Sewer Department,” owns and operates a municipal sanitary sewer system made up of over 280 miles of gravity sewer mains, 11 lift stations and hundreds of manholes which collects wastewater generated within the City as well as certain areas outside of the City and transports it to an independent agency, Monterey One Water (“M1W”) for treatment and disposal. The City and M1W impose separate wastewater rates for their services and this study looks only at the City’s own wastewater collection charges. M1W, the regional treatment system, is a separate governmental entity that sets its own rates which apply to the City and other regional participants including the Cities of Pacific Grove, Del Rey Oaks, Seaside, Sand City, Fort Ord, Marina, Castroville, Monterey, Moss Landing, and some unincorporated areas in northern Monterey County. The regional treatment rates levied by M1W are not a part of this study.

In 2011, a sewer rate study was prepared that increased sewer rates to $5.45 per month for residential users or equivalent dwelling unit (“EDU”). The sewer rate has not changed since 2012. Over a number of years, the sewer enterprise fund, which funds ongoing maintenance of the sewer system has had a funding shortfall. This has meant that necessary infrastructure repairs and upgrades have not been financially possible, leading to system failures and costly emergency repairs. Investment is required to meet State mandates and to prevent additional untreated sewage discharges as occurred in April 2022 which led to a Notice of Violation and fine from the Regional Board.

In 2024, DTA was engaged by the City to evaluate potential rate structures and provide recommendations on how best to address funding gaps for sewer infrastructure upgrades and long-term sewer system needs. DTA prepared various sewer rate scenarios based on the costs provided by City staff for operation and maintenance costs and debt service, plus required capital improvements for improvements needed over the 10-year study period.

The City’s current sewer rate of $5.45 per residential user or EDU is intended to cover the City’s annual operation and maintenance (“O&M”) costs, as well as servicing existing debt obligations, but currently experiences a shortfall. The City’s sewer enterprise fund’s expected revenue and annual budget is projected to experience a shortfall of approximately $400,000 for FY 2024-25 and will not meet the required 125% debt service coverage requirement on the existing bonds. In addition, the current budget does not include capital improvements required for system replacements and upgrades.

The City has identified key infrastructure costs of approximately $114.8 million (escalated value) of capital improvement projects over a ten-year period to upgrade the system to maintain current levels of service. The study herein incorporates the revenue requirements and calculates new sewer rates in compliance with Proposition 218 requirements.

2 SECTION I

EXECUTIVE SUMMARY

City of Salinas June 24, 2025
Sewer Rate Study

www.FinanceDTA.com
As described in this study, the rates are proposed to be increased and phased in over a five (5) year period as shown in Table 1 below. In order to fully fund the costs as described in this study, the sewer rates will need to continue to increase beyond the five (5) year period.

Table 1: Proposed Rate per EDU

Fiscal Year 25/26 26/27 27/28 28/29 29/30
Rate per
EDU per
month
$16.35 $16.68 $17.01 $17.35 $17.70

Based on the proposed sewer rates presented herein, a single-family customer (i.e., one EDU) would see their monthly sewer rate increase from the current $5.45 to $16.35 in the first year (a 200% increase) and increase to $17.70 by the end of the five-year period. The sewer rate per month for other land use classes will be based on the applicable EDU factor as shown in Appendix D herein. The sewer rates by land use category for the full ten-year study period is included in Appendix E herein.

The new sewer rates presented in this study were based on the best information available at the time. Regular updates of the financing and rate projections should be performed as accurate and more complete information becomes available.

3 SECTION II

INTRODUCTION

City of Salinas June 24, 2025
Sewer Rate Study

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II INTRODUCTION
The City Sewer Department owns and operates a municipal sanitary sewer system made up of over 280 miles of gravity sewer mains, 11 lift stations and hundreds of manholes which collects wastewater generated within the City as well as certain areas outside of the City and transports it to an independent agency, M1W for treatment and disposal. The City and M1W impose separate wastewater rates for their services and this study looks only at the City’s own wastewater collection charges. M1W, the regional treatment system, is a separate governmental entity that sets its own rates which apply to the City and other regional participants including the Cities of Pacific Grove, Del Rey Oaks, Seaside, Sand City, Fort Ord, Marina, Castroville, Monterey, Moss Landing, and some unincorporated areas in northern Monterey County. The regional treatment rates levied by M1W are not a part of this study.

The City has engaged DTA to prepare an updated rate study to analyze the current revenue requirements of the Sewer Department and develop a rate structure that will result in sufficient stable revenues to pay for O&M, annual debt service requirements, capital improvements and replacement, as well as fund an operating reserve.

In November 2011, the City approved an updated rate study which increased sewer rates from $4.46 per EDU per month to $5.45 per EDU per month effective February 1, 2012.

Although the City Council adopted the General Plan in 2002, the 2011 rate study did not incorporate capital improvement projects to address upsizing for future conditions.

The City’s current sewer rate of $5.45 per residential user or equivalent dwelling unit (EDU) is intended to cover the City’s annual O&M costs, as well as servicing existing debt obligations, but is currently experiencing a shortfall. The City’s sewer enterprise fund’s expected revenue and annual budget is projected to experience a shortfall of approximately $400,000 for FY 2024-25 and will not meet the required 125% debt service coverage requirement on the existing bonds. In addition, as mentioned above, the current budget does not include capital improvements required for system replacements and upgrades.

A. Purpose
The purpose of this study is to present an updated sewer rate that is in compliance with Proposition 218 requirements as described further in Section II.B below while fully funding revenue requirements for the sewer system as outlined in Section III below.

All numbers used in this sewer rate study were either a) provided by the City or Sewer Department, ii) assumed and agreed upon with the City or Sewer Department, or iii) calculated by DTA using data provided and/or agreed to by the City or Sewer Department.

B. Proposition 218
Ongoing fees for sewer service are commonly called rates. These sewer rates must be supported by a cost-of-service study, or rate study, showing the revenue requirement will be met through the collection of sewer rates as well as a method of reasonably 4 SECTION II

INTRODUCTION

City of Salinas June 24, 2025
Sewer Rate Study

www.FinanceDTA.com
apportioning the costs of service to the various customer classes. Sewer rates for ongoing sewer service have a direct relationship to land ownership, hence are considered property-related fees subject to the limitations of Article XIII D, Section 6 of the California Constitution (“Proposition 218”).

In November 1996, the California voters approved Proposition 218, the “Right to Vote on Taxes Act”, which added Article XIII D to the California Constitution. Proposition 218 imposes certain requirements relative to the imposition of certain assessments, fees and charges by local agencies, including the following:

Revenues derived from the fee or charge shall not exceed the funds required to provide the property related service;
Revenues derived from the fee or charge shall not be used for any purpose other than that for which the fee or charge was imposed; The amount of fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to that parcel; and
No fee or charge may be imposed for a service unless that service is actually used by, or immediately available to, the owner of the property in question.

The rate structure recommended in this study will meet all of the limitations of Proposition 218 in both revenue requirements and proportionality.

In addition, before a local agency can levy new or increased sewer rates, the following procedures are required pursuant to Proposition 218:

Preparation of a rate justification study, prepared by a qualified individual or firm, and the study must justify the proposed rate increase.

The record owner of each parcel subject to the proposed increase must be provided with a written notice of the proposed increase. As industry practice, DTA will also coordinate with the City to mail such notices to the billing address of the sewer customer.

Notice to the record owner must specify the time, date, and location of the public hearing at which the proposed increased fee will be considered. Such notice will also be sent to the billing address of the sewer customer as mentioned above.

A public hearing shall be conducted, held not less than 45 days after mailing the notice, to consider protests to the proposed increased fee.

The increased fee can be approved if a majority of the property owners do not file written protests against the proposed increase.

5 SECTION II

INTRODUCTION

City of Salinas June 24, 2025
Sewer Rate Study

www.FinanceDTA.com
C. Approach
The methodology used in this study to determine proposed rate structures will follow the guidelines provided in AWWA, Principles of Water Rates, Fees, and Charges, Manual of Water Supply Practices (M1 Manual) as they may apply to sewer collection services.

These guidelines were incorporated in the development of a cost-of-service analysis and a rate model that is used to evaluate Sewer Department specific conditions, criteria, and goals.

D. Current Sewer System
The City of Salinas owns and operates a municipal sanitary sewer collection system (“Sewer System”) that services residents and businesses within its service area. The Sewer System has a service area of approximately 12,430 acres, with over 280 miles of gravity sewer mains and 11 lift stations that convey sewage flows to the Regional Wastewater Treatment Plant, operated by M1W.

E. Sewer Master Plan Update and CIP
On May 2, 2023, through Resolution No. 22648, City Council adopted the Salinas Sanitary Sewer Master Plan Update (“SSMP”). The SSMP identified existing hydraulic deficiencies, operation and maintenance repairs, and lift station upgrades required to keep the existing sanitary sewer system operational. The SSMP estimates sewage flows at 10.46 million gallons per day from the existing sanitary sewer system. Required maintenance repairs and existing hydraulic deficiencies were ranked based on priority. Costs for maintenance repairs and to fix existing hydraulic deficiencies are the sole responsibility of the City rate payers.

The SSMP developed a Sanitary Sewer Capital Improvement Program (“CIP”) that identified capital improvement projects to address both the existing maintenance repairs and deficiencies and upsizing for future conditions. Capital improvement projects were ranked based on priority. Ranking for existing system capital improvement projects was based on the following criteria to prioritize them: impacts to water bodies, design standards, maintenance requirements, impact to the community and proximity to a monitoring manholes. For lift stations, the criteria used to prioritize them were:
impacts to water bodies, inspection frequency, pumping capacity deficiency, peak hour emergency response time, bypass requirement, generator requirement, control or electronic update requirement, and impacts to the community. Possible impacts from future development were also analyzed for maintenance and lift station projects. Future capital improvement projects required exclusively to upsize the sewer system to accommodate future development were not ranked in the SSMP as these improvements must be coordinated and timed with development.

As mentioned earlier, the City’s current sewer rate does not fund capital improvements required for system replacements and upgrades. Of the facilities and costs identified in the CIP, the City has identified only the highest priority projects (“High Priority Projects”) 6 SECTION II

INTRODUCTION

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that would need to be funded from future rate revenue.

F. Rate Study Organization
In order to fully fund the necessary revenue requirements as identified in the following sections of the rate study, the City’s sewer rates must be increased.

Below is a description of the remaining sections of the rate study:

Section III: Revenue Requirements – This section describes the cost categories that the sewer rate revenue and other revenue sources will need to fund including, operations and maintenance costs (“O&M”), capital expenditures, debt service, and contributions to the operating reserve.

Section IV: Sewer Rate Analysis – This section describes the proposed rates to be charged to sewer customers in the City and the calculations used in determining a sewer rate structure that can fully fund the revenue requirements described in Section III.

Section V: Implementation of Rates – This section includes the proposed updated sewer rates for the various land uses over the next five years.

Section VI: Conclusion – This section includes the overall conclusions. 7 SECTION III

RATE REVENUE

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III REVENUE REQUIREMENTS
The Revenue Requirements, or cost categories, that rate revenue and other revenue sources will need to pay for include, operations and maintenance costs (“O&M”), capital expenditures, debt service, and contributions to an operating reserve. These cost categories are described in greater detail below.

A. Operations and Maintenance
The Sewer Department’s O&M costs include salaries and benefits, supplies and materials, outside services, and other charges as identified on pages 379 and 383 of the City’s fiscal year 24/25 Operating Budget, adopted by Resolution No. 22979. The O&M cost projections use the baseline costs from the City’s adopted operating budget for fiscal year 24/25, as shown in the section, “Enterprise Operations, 5442 Sanitary Sewer Division.” The City’s costs are escalated by a factor of 7.5% annually as a reasonable estimate of future costs based on several factors identified by the City including labor costs, contributions for pension liabilities, and utility costs (i.e., electricity for pump stations, etc.) which are escalating at much higher rates than inflation.

B. Capital Expenditures
Capital costs are based on Tables 7-4, 7-5, and 7-6 of the Sanitary Sewer Master Plan Update dated May 2023, approved by Resolution No. 22648. Of the total capital costs, the City identified certain High Priority Projects as shown in Appendix C to be funded by the proposed sewer rate. The total cost of the sewer system capital upgrades assigned to existing development, adjusted for inflation, is equal to approximately $114.8 million. The listing of capital improvement projects are divided into three categories; i) Maintenance and repairs to the existing sewer system; ii) Sewer upsizing costs allocated to existing development; and iii) Lift Stations. Maintenance and repair projects address hydraulic and maintenance deficiencies of the existing sewer system.

These improvements were identified as pipelines without the required velocities, with sags or failures, or with blockages that constrain flows. In addition, sewer upsizing projects will correct existing capacity deficiencies to upsize pipelines to allow sewers to flow more efficiently. Lift station projects will address upgrades to outdated systems and will provide uniformity and redundancy to the overall system.

These High Priority
Projects are described in further detail below:

B.1. Existing Sewer Collection
The SSMP identified thirty-one (31) sewer collection system projects and eleven (11) lift station projects that have hydraulic deficiencies and maintenance concerns under existing conditions. The Wallace Group recommended that these projects be completed over a five to 15-year period. The City then adjusted the timing of the expenditures to more closely match the City’s capacity to implement the appropriate level of projects on an annual basis. The City identified thirteen (13) projects from the 8 SECTION III

RATE REVENUE

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Sewer Rate Study

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list of projects identified in the SSMP that would be expected to be implemented within the next ten years. The total costs for these projects, adjusted for inflation at 3% per annum, is $70.7 million. See Table C-1 in Appendix C herein for project costs and timeline, adjusted for 3% inflation.

B.2. Sewer Upsizing
The SSMP identified nine (9) projects that will need existing sewer lines to be upsized due to existing deficiencies and the need to provide additional capacity for new development. Wallace Group provided allocations of costs to new and existing development based on existing and future flow and pipe sizes. The City then provided updated cost projections and project timing for seven of the nine projects listed in the SSMP. The total projected costs for these projects, adjusted for inflation at 3% per annum, is estimated to be $20.6 million as shown in Table C-2 in Appendix C herein.

B.3 Lift Stations
The City owns and operates eleven (11) sewer lift stations throughout the City and also maintains one lift station funded through an existing assessment district. All lift stations are integral with the City’s sewer collection system. The SSMP evaluated each of the lift stations and force mains for hydraulic performance and emergency response times in the event of sanitary sewer overflow conditions. The SSMP provided present value costs for the lift station upgrades recommended by the analysis. The City provided the timing and costs for seven (7) of the eleven lift stations mentioned in the SSMP that are expected to be completed within the next seven (7) years. The total projected costs for these projects, adjusted for inflation at 3% per annum, is estimated to be $23.5 million as shown in Table C-3 in Appendix C herein.

B.4 Total Costs for High Priority Projects
Table 2 below is a summary of the total costs for the High Priority Projects as described above, adjusted for inflation, used for setting the updated sewer rates. Table C-4 in Appendix C herein summarizes the total costs by year.

Table 2
Costs for High Priority Projects
Description Cost
Sewer Collection $70.7 million
Sewer Upsizing $20.6 million
Lift Stations $23.5 million
Total $114.8 million

9 SECTION III

RATE REVENUE

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C. Debt Service
Debt service includes the annual principal and interest payments on bonds issued by the City whose proceeds are used to pay for capital improvements to the City-wide sewer system. The debt service for both existing bonds issued and bonds that are proposed to be issued in the future are intended to be paid for from rate revenue.

Existing Debt Service - The existing annual bond debt service to be paid by sewer rates consist of annual principal and interest payments for Wastewater Revenue Refunding Bonds Series 2020A. First issued in 2020, the annual debt service on these bonds is indicated in the rate model herein over the next ten (10) years.

Proposed Debt Service – The timing of capital improvements and the acceptable levels of pay-as-you-go financing of such improvements suggest that funding a portion of the capital improvements by debt in the form of revenue bonds would not only reduce the annual revenue requirement of the capital facilities program, but also reduce the annual sewer rates required to cover the costs of operations and maintenance, reserves and total debt service as compared to a complete pay-as-you- go alternative.

The timing of issuance and the amounts of the bonds are dependent upon the timing and costs of the capital projects in accordance with the goals of the City, as identified in Section B above. For purposes of this analysis, three separate bond issuances were considered, issued in years 2, 5 and 8 during the ten (10) year study period. Please refer to Appendix B for additional bond assumptions.

D. O&M Reserve Requirements
Starting in fiscal year 26/27 of this study, it is assumed that 50% of the total annual operating expenses (i.e., 180 days of operating reserves which is based on industry practice for similar utilities) from the net operating income after debt service will be transferred to a newly established operating reserve fund. The City expects to adopt a formal reserve policy following the adoption of this rate study.

10 SECTION IV

SEWER RATE ANALYSIS

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IV SEWER RATE ANALYSIS
A. Current Rate Structure
The City currently funds the majority of its operational and capital improvement costs through sewer rate revenue. For reference, M1W is the sewer treatment provider in northern Monterey County. M1W is responsible for the treatment of wastewater while the City is responsible for collecting and transporting wastewater to M1W. This shared responsibility is reflected on the monthly bill to property owners.

The City’s current sewer rates included on the monthly bills sent by M1W are charged on a per EDU basis. The current Fiscal Year 24/25 sewer rate is equal to $5.45 per EDU per month. For Fiscal Year 24/25, the activities of which consisted of routine operation and maintenance as well as debt service payments on existing bonds, the revenues were less than the expenditures. The deficit in expenses versus revenues demonstrates that the current rates are not sufficient to maintain the existing system.

B. Proposed Rate Structure
The proposed rate structure utilizes both pay-as-you-go rate collections as well as bond issuances to fund the annual O&M costs and a minimum level of capital facilities.

Projections under this rate structure suggest that the City will have sufficient reserves to continue meeting debt service and capital needs by the end of FY 2034-35. Please see below for a summary of the findings:
 Year 1 Monthly Rate per EDU (2025) - $16.35
 Sewer Rate escalates annually by 2%
 Estimated Year 10 Capital Replacement Fund Balance: $7.5 million  Estimated Total Facilities Funded through Bonds and Pay-Go: $114.8 million C. Equivalent Dwelling Units
As mentioned earlier, this study uses an EDU methodology to allocate costs to the various land uses for the City’s billing purposes. The flow per land use unit is divided by the flow per single family land use unit to determine the flow relative to a single family unit (EDU per Billing Unit). Note that the flow per land use unit factors are averages provided by M1W. The number of customer connections and the flow per connection for each land use as of July 2024 was provided to the City by M1W. The total City-wide EDUs were then determined by multiplying the EDU per Billing Unit by the number of connections for that land use category. Since the City’s sewer infrastructure consists of City-wide collection and not treatment, the EDUs are based only on flow. The tabulation for total City-wide EDUs (61,745) is shown in Appendix D.

For the purposes of projecting growth in EDUs over the ten-year study period, a 1% 11 SECTION IV

SEWER RATE ANALYSIS

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Sewer Rate Study

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per year growth factor is assumed.

D. Model Considerations
It is evident that there are many combinations of assumptions that affect the determination of a rate structure calculation that can potentially meet the revenue requirements on an annual basis. Factors including inflation, annual rate escalations, debt service and customer growth play into the determination of such a rate structure.

12 SECTION V

IMPLEMENTATION OF RATES

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V IMPLEMENTATION OF RATES
As described in this study, the rates are proposed to be increased and phased in over a five (5) year period as shown in Table 3 below. In order to fully fund the costs as described in this study, the sewer rates will need to continue to increase beyond the five (5) year period.

Rates for all land uses will see a 200% increase in year 1 and an annual increase of 2% each year thereafter during the five (5) year period. The annual increase is necessary in order to fully fund all revenue requirements.

Table 3: Proposed Rate per EDU per month
Fiscal Year 25/26 26/27 27/28 28/29 29/30
Rate per
EDU per
month
$16.35 $16.68 $17.01 $17.35 $17.70

It is strongly suggested that in Year 5 (FY 2029-30), the City review their annual operation and maintenance costs, capital facilities costs and timing, demographics information, as well as the various modelling assumptions and update the sewer rates, if needed.

The full 10-year rate model is included in Appendix A herein. The sewer rates by land use category for the 10-year study period is included in Appendix E herein.

13 SECTION VI

CONCLUSION

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VI CONCLUSION
The final sewer rates contained in this study are a result of an extensive public process with input received from City staff and the City Council and are based on the best information available at the time. Regular review and evaluation of the financing and rate projections should be performed as accurate and more complete information becomes available. The rates should be reviewed annually to take into account the results of local project construction bids, actual O&M and capital facilities costs, actual financing received for the projects, and adjustment to the rates may be considered, as necessary.

The new sewer rates, as shown in Table 3 herein, are designed to produce revenues to fund operations and maintenance, new capital improvement projects, debt service and an operating reserve over the next five years.

Based on the new sewer rates presented herein, a single-family customer would see their monthly sewer rate increase from the current $5.45 to $16.35 in the first year (a 200% increase), and increase to $17.70 by the end of the five-year period.

APPENDIX A
City of Salinas
Sewer Rate Study

SEWER RATE MODEL

Study Year Number Current
Budget1 1 2 3 4 5 6 7 8 9 10
Calendar Year 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 Rate ($ per EDU -Monthly) 5.45$ 16.35$ 16.68$ 17.01$ 17.35$ 17.70$ 18.05$ 18.41$ 18.78$ 19.16$ 19.54$ 200.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% EDUs 61,745 61,745 62,362 62,986 63,616 64,252 64,895 65,544 66,199 66,861 67,530 Operations
Operating Revenue
City of Salinas Rate Revenue 4,038,123$ 12,114,370$ 12,480,224$ 12,857,127$ 13,245,412$ 13,645,424$ 14,057,516$ 14,482,053$ 14,919,411$ 15,369,977$ 15,834,150$ Investment Interest
Net Income Carry Forward from Prior Year 0 0 0 0 0 0 0 0 0 0 0 Inspection Fees
Total Operating Revenue 4,038,123$ 12,114,370$ 12,480,224$ 12,857,127$ 13,245,412$ 13,645,424$ 14,057,516$ 14,482,053$ 14,919,411$ 15,369,977$ 15,834,150$ 139,005,663$ Operational Expenses
Salaries and Benefits 1,954,090$ 2,100,647$ 2,258,195$ 2,427,560$ 2,609,627$ 2,805,349$ 3,015,750$ 3,241,931$ 3,485,076$ 3,746,457$ 4,027,441$ Supplies and Materials 241,000$ 259,075$ 278,506$ 299,394$ 321,848$ 345,987$ 371,936$ 399,831$ 429,818$ 462,055$ 496,709$ Outside Services 388,000$ 417,100$ 448,383$ 482,011$ 518,162$ 557,024$ 598,801$ 643,711$ 691,989$ 743,889$ 799,680$ Other Charges 397,500$ 427,313$ 459,361$ 493,813$ 530,849$ 570,663$ 613,462$ 659,472$ 708,932$ 762,102$ 819,260$ NPDES Allocation 536,920$ 577,189$ 620,478$ 667,014$ 717,040$ 770,818$ 828,629$ 890,777$ 957,585$ 1,029,404$ 1,106,609$ Total Operational Expenses 3,517,510$ 3,781,323$ 4,064,922$ 4,369,792$ 4,697,526$ 5,049,841$ 5,428,579$ 5,835,722$ 6,273,401$ 6,743,906$ 7,249,699$ 53,494,711$ Net Operating Income before Debt Service 520,613$ 8,333,047$ 8,415,302$ 8,487,335$ 8,547,886$ 8,595,583$ 8,628,937$ 8,646,331$ 8,646,009$ 8,626,071$ 8,584,451$ 85,510,952$ Debt Service
Current Debt Service 856,080$ 865,385$ 863,002$ 859,384$ 863,658$ 862,054$ 864,951$ 861,608$ 862,093$ 856,582$ 860,170$ 8,618,887$ First Issuance -$ - $ 2,780,298$ 2,780,298$ 2,780,298$ 2,780,298$ 2,780,298$ 2,780,298$ 2,780,298$ 2,780,298$ Second Issuance -$ - $ -$ -$ - $ 981,951$ 981,951$ 981,951$ 981,951$ 981,951$ Third Issuance -$ - $ -$ -$ - $ -$ -$ -$ 1,850,063$ 1,850,063$ Total Debt Service 856,080$ 865,385$ 863,002$ 3,639,683$ 3,643,957$ 3,642,353$ 4,627,201$ 4,623,858$ 4,624,342$ 6,468,895$ 6,472,483$ Debt Service Ratio (1.25 Minimum) 0.61 9.63 9.75 2.33 2.35 2.36 1.86 1.87 1.87 1.33 1.33 Net Operating Income After Debt Service (335,467)$ 7,467,662$ 7,552,300$ 4,847,653$ 4,903,930$ 4,953,231$ 4,001,736$ 4,022,473$ 4,021,667$ 2,157,176$ 2,111,968$ 46,039,796$ .

Transfer to Operating Reserve (2,032,461)$ (152,435)$ (82,569)$ (127,785)$ (139,775)$ (149,526)$ (160,677)$ (172,742)$ (185,699)$ Transfer to Capital Replacement Program (7,467,662)$ (5,519,839)$ (4,695,218)$ (4,821,361)$ (4,825,446)$ (3,861,961)$ (3,872,947)$ (3,860,990)$ (1,984,434)$ (1,926,270)$ (42,836,128)$ Net Year End Balance in Operating Account -$ -$ 0$ -$ 0$ -$ -$ -$ -$ -$ Fiscal Year 1 2 3 4 5 6 7 8 9 10
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 Operating Reserve Fund Balance
Carry Forward from Prior Year - $ -$ 2,032,461$ 2,032,461$ 2,225,545$ 2,352,625$ 2,527,462$ 2,717,786$ 2,921,667$ 3,140,778$ 3,376,335$ Maintain 50% of Annual Operational Expenses (180 days) 152,435$ 82,569$ 127,785$ 139,775$ 149,526$ 160,677$ 172,742$ 185,699$ Interest Earnings on Fund Balance 40,649$ 44,511$ 47,052$ 50,549$ 54,356$ 58,433$ 62,816$ 67,527$ Less: Transfer Interest Earnings to Capital Fund -$ -$ - $ -$ -$ -$ -$ -$ Less: Outlay - $ -$ - $ -$ -$ - $ -$ -$ -$ -$ -$ Year End Balance -$ 2,032,461$ 2,225,545$ 2,352,625$ 2,527,462$ 2,717,786$ 2,921,667$ 3,140,778$ 3,376,335$ 3,629,561$ Fiscal Year 1 2 3 4 5 6 7 8 9 10
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 Capital Replacement Fund Balances
Carry Forward from Prior Year 0 -$ 1,304,540$ 31,924,450$ 16,395,620$ 50,605$ 8,561,773$ 3,340,430$ 52,842$ 19,213,479$ 11,385,420$ Transfer In from Operating Account 0 7,467,662$ 5,519,839$ 4,695,218$ 4,821,361$ 4,825,446$ 3,861,961$ 3,872,947$ 3,860,990$ 1,984,434$ 1,926,270$ 42,836,128$ Interest Earnings on Fund Balance 0 26,091$ 638,489$ 327,912$ 1,012$ 171,235$ 66,809$ 1,057$ 384,270$ 227,708$ 1,844,583$ Interest Earnings from Operating Reserve - $ -$ -$ - $ -$ -$ -$ -$ -$ -$ Bond Issuance -$ 38,463,802$ -$ -$ 13,584,724$ -$ -$ 25,594,537$ -$ -$ Less: Capital Outlay for Projects -$ 6,163,122$ 13,389,822$ 20,862,537$ 21,494,288$ 9,900,014$ 9,254,539$ 7,227,344$ 10,295,947$ 10,196,763$ 6,037,883$ 114,822,258$ Year End Balance -$ 1,304,540$ 31,924,450$ 16,395,620$ 50,605$ 8,561,773$ 3,340,430$ 52,842$ 19,213,479$ 11,385,420$ 7,501,515$ Notes:

1. The current monthly rate per EDU of $5.45 is insufficient to meet operating expenses and debt service requirements.

5.00% 5.00% 5.00%
30 30 30

3.50% 3.50% 3.50%

0.00% 0.00% 0.00%

6.51% 6.51% 6.51%
$42,740,000 $15,095,000 $28,440,000
Uniform Series Factor 0.065051 Uniform Series Factor 0.065051 Uniform Series Factor 0.065051 2,780,298$ 981,951$ 1,850,063$
BOND PROCEEDS 38,463,802$ BOND PROCEEDS 13,584,724$ BOND PROCEEDS 25,594,537$ 2 5 8Assumptions: Criteria:

O&M Inflation Factor = 7.5% 1. Minimal year end balance at 10th year Total CIP Bond Proceeds PayGo Annual Rate Escalation= 2% 2. CIP funded through 31% rates and 69% bonds 114,822,258$ 77,643,062$ 37,179,196$ Annual EDU Growth Rate= 1% 3. Bonds Issued in Years 2,5 and 8 100.00% 67.62% 32.38% Minimum Debt Service Ratio= 1.25% 4. CIP based on costs and timeline provided by Wallace and adjusted by City Rate Stabilization Fund not required 5. Transfer to O&M reserve fund based on 50% of annual operating expenses CIP Allocation

ANNUAL PAYMENT ANNUAL PAYMENT ANNUAL PAYMENT

ISSUANCE IN STUDY YEAR ISSUANCE IN STUDY YEAR ISSUANCE IN STUDY YEAR

RESERVE FUND RESERVE FUND RESERVE FUND

BOND AMOUNT BOND AMOUNT BOND AMOUNT
COST OF ISSUANCE (%) COST OF ISSUANCE (%) COST OF ISSUANCE (%)

BOND PREMIUM BOND PREMIUM BOND PREMIUM

AVERAGE COUPON AVERAGE COUPON AVERAGE COUPON

BOND TERM (YEARS) BOND TERM (YEARS) BOND TERM (YEARS)
City of Salinas - Sewer Rates/Max Bonding Capacity with minimum 125% coverage (32% PayGo with 68% Bonds) Calendar Years 2025-2034
Totals
Years 1-10
Totals

FIRST ISSUANACE SECOND ISSUANACE THIRD ISSUANACE

APPENDIX B
City of Salinas
Sewer Rate Study

RATE MODEL

ASSUMPTIONS

The rate model included in Appendix A herein was designed to allow for sufficient sewer rate revenues to pay for operations and maintenance, annual debt service requirements, capital improvements and replacement, as well as fund an operating reserve. The assumptions used in this model include the following:
 Key assumptions related to the rate model are listed below:

The number of customers, and the corresponding EDUs, is provided by M1W.

Positive net operating income after debt service (i.e., net operating income is rate revenue less O&M and debt service)
O&M and capital improvement projects and costs were provided by the City.

Fund O&M reserve fund equal to 50% of the total annual operating expenses Positive net operating income after debt service in any given year will be transferred to the Capital Replacement Fund
The beginning Capital Replacement Fund balance is $0 (i.e., Capital Replacement Fund consists of net operating income deposited to fund plus interest earnings plus bond proceeds less costs for capital facilities) Capital Replacement Fund expenditures over 10 years will be in accordance with the timeline provided by City
 Key assumptions related to inflation and rate escalation are listed below:

7.5% Estimated Annual O&M Cost Inflation

3.0% Estimated Annual Capital Facilities Cost Inflation

2.0% Estimated Annual Rate Escalation

2.0% Estimated Investment Return on Reserve Balances

1.0% Annual Development Growth: The City and Wallace Group expects a modest increase in the number of EDUs over the next decade as the population grows.
 Key assumptions related to the bonds are listed below:

Bonds to be issued in Years 2, 5, and 8
Bond interest rate is equal to 5.00%
Construction proceeds equal to 90% of the bond issue amount Bond Term of 30 years
Minimum 125% debt service coverage

Please note that all numbers used in this sewer rate study were either i) provided by the City or their consultants, ii) assumed and agreed upon with the City, or iii) calculated by DTA using data provided and/or agreed to by the City or their consultants.

APPENDIX C
City of Salinas
Sewer Rate Study

HIGH PRIORITY PROJECT

COST TABLES

Table C-1
Sewer Collection System Repair, Rehabilitation and Replacement

0 1 2 3 4 5 6 7 8 9 10
2024-2025 2025-2026 2026 2027 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 1 Cesar Chavez Park - 300,000 4,164,681 4,289,622 4,418,310 - - - - - - - - - - - 2 Upper Carr Lake Repairs - 1,157,205 - - - - - - - - - 3 Upstream TP2 Diversion - - - 66,837 - - - - - - - 4 Northridge Mall - 300,000 2,453,872 - - - - - - - - 5 East Market and Upstream of Lake Street - - 309,000 1,648,511 - - - - - - - 6 Louise and Van Buren Street Repair - - - - - - - - 365,887 - - 7 West Market at Davis Overcrossing - - - - - - - - - - - 8 Cherokee Drive - - 309,000 2,533,429 - - - - - - - 9 Malarin St and Wilgart Way Repairs - - - - - - - - - - - 10 Romie Lane Repairs and Reconfig Analysis - - - - - - 119,405 - - 134,392 11 King Street Repairs - - - - - 225,102 717,591 - - - - 12 Del Monte and Mae Repairs - - - - - - - - - 654,866 674,512 13 Riker Street Repairs - - - - - - - - - - 15,052 14 West Market Street Repairs - - 863,929 889,847 15 Joohnson Place Repairs - - - - - - - - - - - 16 N Main St Hwy 101 Underpass Bunkder Repair - - - - - - - - - - - 17 Donner Way - - - - 204,496 - - - - 18 San Miguel Ave Repair - - - - - - - - - - - 19 Noice Dr/ Tyler Street - - - - - - - 358,216 5,485,237 - - 20 Natividad Rd - - - - - - - - - - - CIPs 21 thru 27 - - - - - - - - - - CCTV Sewers - 1,120,150 1,153,755 1,188,367 1,224,018 1,260,739 1,298,561 1,337,518 1,377,643 1,418,973 1,461,542 CCTV Inspection Program 153,897 158,514 163,269 168,167 173,212 178,409 183,761 189,274 194,952 200,801 CIPP Line Sewers - 2,060,000 2,060,000 2,121,800 2,185,454 2,251,018 2,318,548 2,388,105 2,459,748 2,533,540 2,609,546 Full Replacement Sewers - - - - - - - - - - - Root Removal - 41,200 41,200 42,436 43,709 45,020 46,371 47,762 49,195 50,671 52,191 Sewer Manhole Replacement - - - - - - - - - - - Sewer Manhole Lining - - - - - - - - - - - total 0 5,132,452 10,650,022 12,054,271 8,244,155 3,955,091 4,559,479 4,434,766 9,926,985 5,716,931 6,037,883 Cumulative -$ 5,132,452$ 15,782,474$ 27,836,745$ 36,080,900$ 40,035,991$ 44,595,471$ 49,030,237$ 58,957,222$ 64,674,152$ 70,712,035$ Project
Number
………………………….…………Project.Year………
………………….…….…... Fiscal.Year..Project
Name…………………...…

Table C-2
Sewer Collection System Upsizing

0 1 2 3 4 5 6 7 8 9 10
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 1 San Juan Grade - 309,000 1,257,827 1,295,562 - - - - - - 2 North Davis Road - 257,500 2,548,268 2,624,716 2,703,458 - - - - - 3 West Laurel Drive - - - - - - - - - - 4 Victor Street - - - - - - - - - - 5 Freedom Parkway - - - 237,122 - - - - - - 6 Natividad Creek Park 250,000 1,967,300 - - - - - - - - 7 East Alisal Street - - 265,225 1,695,912 - - - - - - 8 Abbot Street 380,670 - - - - - - - - - 9 South Sanborn Road - - - - - - - 368,962 4,479,832 - Totals 630,670$ 2,533,800$ 4,071,320$ 5,853,312$ 2,703,458$ -$ -$ 368,962$ 4,479,832$ -$ Cumulative -$ 630,670$ 3,164,470$ 7,235,790$ 13,089,103$ 15,792,560$ 15,792,560$ 15,792,560$ 16,161,523$ 20,641,355$ 20,641,355$ Project
Number
………………………….…………Project.Year………
………………….…….…... Fiscal.Year..Project
Name…………………...…

Table C-3
Sewer Lift Stations

0 1 2 3 4 5 6 7
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 1 Lake Street Lift Station 400,000 - 4,524,765 4,660,508 - - - 2 Santa Rita Lift Station - 206,000 - 2,736,313 - - - 3 Spicer Lift Station - - 212,180 - 3,241,465 - - 4 Mill Lake Lift Station - - - - - 4,463,205 - 5 Carpenter Hall Lift Station - - - - - 231,855 1,430,923 6 De Ls Torre Lift Station - - - - - - 24,315 7 Vista Nueva Lift Station - - - - - - - 8 Harkins Road Lift Stataion - - - - - - - 9 Las Casitas Lift Station - - - - - - - 10 TP 2 Lift Station - - - - - - - 11 Airport Lift Station - - - - - - 1,337,339 total -$ 400,000$ 206,000$ 4,736,945$ 7,396,821$ 3,241,465$ 4,695,060$ 2,792,577$ Cumulative -$ 400,000$ 606,000$ 5,342,945$ 12,739,766$ 15,981,231$ 20,676,291$ 23,468,869$ Project
Number
………………………….…………Project.Year………
………………….…….…... Fiscal.Year..Project
Name…………………...…

Table C-4
Total Costs for High Priority Projects by Year

Description FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 Sewer Collection $5,132,452 $10,650,022 $12,054,271 $8,244,155 $3,955,091 $4,559,479 $4,434,766 $9,926,985 $5,716,931 $6,037,883 Sewer Upsizing $630,670 $2,533,800 $4,071,320 $5,853,312 $2,703,458 $0 $0 $368,962 $4,479,832 $0 Lift Stations $400,000 $206,000 $4,736,945 $7,396,821 $3,241,465 $4,695,060 $2,792,577 $0 $0 $0 Total $6,163,122 $13,389,822 $20,862,536 $21,494,288 $9,900,014 $9,254,539 $7,227,343 $10,295,947 $10,196,763 $6,037,883 Cumulative $6,163,122 $19,552,944 $40,415,481 $61,909,769 $71,809,783 $81,064,322 $88,291,666 $98,587,613 $108,784,376 $114,822,258

APPENDIX D
City of Salinas
Sewer Rate Study

EDU SUMMARY

City Code Description Billing Units Flow per
Unit
EDU per
Billing
Unit
EDUs
001 Business/Government (for every 10 employees) 3,809 117 0.78 2,971 102 Residence 23,311 150 1.00 23,311 105 Multi Residence - Apts 17,630 150 1.00 17,630 107 Condominium 2,438 150 1.00 2,438 109 Retirement Complex 136 150 1.00 136 221 Hotel/Motel 1,896 66 0.44 834 231 Supermarket 34 638 4.25 145 241 Medical 323 156 1.04 336 242 Dental 114 215 1.43 163 243 Rest Home/ Convalescent 950 43 0.29 272 244 Surgery Center/ General Hospital 11 256 1.71 19 245 Animal Hospital 6 292 1.95 12 261 Restaurant - 1 Meal 389 6 0.04 16 262 Restaurant - 2 Meals. 4,422 9 0.06 265 263 Restaurant - 3 Meals. 1,761 17 0.11 200 264 Restaurant w/ Bar 737 17 0.11 84 265 Bar 3,372 254 1.69 5,710 266 Night Club 2 760 5.07 10 267 Take-Out Small 180 283 1.89 340 268 Take-Out Medium 39 697 4.65 181 269 Take-Out Large 20 1,270 8.47 169 270 Bakery 54 230 1.53 83 281 Theater 4 377 2.51 10 282 Bowling Center 2 1,146 7.64 15 283 Gym - 500 Members 8 117 0.78 6 285 Gym - 1500 Members 1 351 2.34 2 286 Gym - 2000 Members 1 468 3.12 3 292 School - Pre Grade 6 22,272 2 0.01 297 293 School - Grade 7 -College 18,493 4 0.03 493 294 School - Boarding 2,688 40 0.27 717 295 Instructional Facility 7 117 0.78 5 296 Church - Small 51 117 0.78 40 297 Church - Large 30 234 1.56 47 301 Photo Developer 11 117 0.78 9 311 Laboratory - 10 employees 21 117 0.78 16 331 Garage Repair 134 112 0.75 100 332 Garage 11-20 employees 3 112 0.75 2 341 Paint Shop - 10 employees 61 117 0.78 48 342 Paint Shop - 20 employees 5 234 1.56 8 351 * Industrial Laundry 2 76,885 512.57 1,025 352 * Commercial Laundry 1 1,845 12.30 12 353 Dry Cleaner 5 386 2.57 13 354 Laundromat 1,162 102 0.68 790 366 * Car Wash 17 2,424 16.16 275 367 * Truck/ Bus Wash 4 1,538 10.25 41 401 * Special User 23 9,611 64.07 1,474 403 * Chemical Pesticides 1 2,768 18.45 18 405 * Water Softener 1 18,299 121.99 122 406 * Food Processor 6 9,611 64.07 384 407 * Rec/Sports Facility 4 2,307 15.38 62 408 * Inedible Renderer 1 49,206 328.04 328 410 * Groundwater Discharger 2 4,357 29.05 58 Totals 61,745
* Land use category is classified as a special user for purposes of charging the sewer rate.

APPENDIX E
City of Salinas
Sewer Rate Study

FIVE-YEAR RATE SUMMARY

BY LAND USE

City Code Land Use Class (other than Special Users) Units FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 001 Business/Government Location/Each Business ($ for every 10 employees) 12.75$ 13.01$ 13.27$ 13.53$ 13.80$ 102 Residence Each Living Unit 16.35$ 16.68$ 17.01$ 17.35$ 17.70$ 105 Multi Residence - Apts Each Living Unit 16.35$ 16.68$ 17.01$ 17.35$ 17.70$ 107 Condominium Each Living Unit 16.35$ 16.68$ 17.01$ 17.35$ 17.70$ 109 Retirement Complex Each Living Unit 16.35$ 16.68$ 17.01$ 17.35$ 17.70$ 221 Hotel/Motel Each Room 7.19$ 7.34$ 7.48$ 7.63$ 7.79$ 222 Bed & Breakfast Each Room 4.69$ 4.78$ 4.88$ 4.97$ 5.07$ 231 Supermarket Location 69.54$ 70.93$ 72.35$ 73.80$ 75.27$ 241 Medical Each Licensed Physician 17.00$ 17.34$ 17.69$ 18.04$ 18.41$ 242 Dental Each Licensed Dentist 23.44$ 23.90$ 24.38$ 24.87$ 25.37$ 243 Rest Home/ Convalescent Each Bed of Licensed Capacity 4.69$ 4.78$ 4.88$ 4.97$ 5.07$ 244 Surgery Center/ General Hospital Each Bed of Licensed Capacity 27.90$ 28.46$ 29.03$ 29.61$ 30.20$ 245 Animal Hospital Location/Each Licensed Business 31.83$ 32.46$ 33.11$ 33.78$ 34.45$ 261 Restaurant - 1 Meal Each Restaurant Seat 0.65$ 0.67$ 0.68$ 0.69$ 0.71$ 262 Restaurant - 2 Meals Each Restaurant Seat 0.98$ 1.00$ 1.02$ 1.04$ 1.06$ 263 Restaurant - 3 Meals Each Restaurant Seat 1.85$ 1.89$ 1.93$ 1.97$ 2.01$ 264 Restaurant w/ Bar Each Restaurant Seat 1.85$ 1.89$ 1.93$ 1.97$ 2.01$ 265 Bar Location/Each Business 27.69$ 28.24$ 28.80$ 29.38$ 29.97$ 266 Night Club Location/Each Business 82.84$ 84.50$ 86.19$ 87.91$ 89.67$ 267 Take-Out Small 1 Cash Register or Checkout Line 30.85$ 31.46$ 32.09$ 32.74$ 33.39$ 268 Take-Out Medium 2 or 3 Cash Registers or Checkout Lines 75.97$ 77.49$ 79.04$ 80.62$ 82.24$ 269 Take-Out Large 4 or More Cash Registers or Checkout Lines 138.43$ 141.20$ 144.02$ 146.90$ 149.84$ 270 Bakery Location/Each Business 25.07$ 25.57$ 26.08$ 26.60$ 27.14$ 281 Theater Per Screen @ Each Location 41.09$ 41.91$ 42.75$ 43.61$ 44.48$ 282 Bowling Center Location/Each Business 124.91$ 127.41$ 129.96$ 132.56$ 135.21$ 283 Gym - 500 Members $ for every 500 members 12.75$ 13.01$ 13.27$ 13.53$ 13.80$ 292 School - Pre Grade 6 School Population 0.22$ 0.22$ 0.23$ 0.23$ 0.24$ 293 School - Grade 7 -College School Population 0.44$ 0.44$ 0.45$ 0.46$ 0.47$ 294 School - Boarding School Population 4.36$ 4.45$ 4.54$ 4.63$ 4.72$ 295 Instructional Facility Location/Each Business 12.75$ 13.01$ 13.27$ 13.53$ 13.80$ 296 Church - Small (1-100 Members) Per 100 members 12.75$ 13.01$ 13.27$ 13.53$ 13.80$ 297 Church - Large (> 100 Members) Per 100 members 25.51$ 26.02$ 26.54$ 27.07$ 27.61$ 301 Photo Developer / Printer $ for every 10 employees 12.75$ 13.01$ 13.27$ 13.53$ 13.80$ 311 Laboratory - 10 employees $ for every 10 employees 12.75$ 13.01$ 13.27$ 13.53$ 13.80$ 331 Garage Repair $ for every 10 employees 12.21$ 12.45$ 12.70$ 12.96$ 13.21$ 341 Paint Shop - 10 employees $ for every 10 employees 12.75$ 13.01$ 13.27$ 13.53$ 13.80$ 353 Dry Cleaner Location/Each Business 42.07$ 42.92$ 43.77$ 44.65$ 45.54$ 354 Laundromat Each Washing Machine 11.12$ 11.34$ 11.57$ 11.80$ 12.03$ Sewer Rate per Month

City Code Land Use Class (Special Users) * Units FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 351 Industrial Laundry Based on actual flow GPD x sewer rate for applicable year 0.109$ 0.111$ 0.113$ 0.116$ 0.118$ 352 Commercial Laundry Based on actual flow GPD x sewer rate for applicable year 0.109$ 0.111$ 0.113$ 0.116$ 0.118$ 366 Car Wash Based on actual flow GPD x sewer rate for applicable year 0.109$ 0.111$ 0.113$ 0.116$ 0.118$ 367 Truck/ Bus Wash Based on actual flow GPD x sewer rate for applicable year 0.109$ 0.111$ 0.113$ 0.116$ 0.118$ 401 Special User Based on actual flow GPD x sewer rate for applicable year 0.109$ 0.111$ 0.113$ 0.116$ 0.118$ 403 Chemical Pesticides Based on actual flow GPD x sewer rate for applicable year 0.109$ 0.111$ 0.113$ 0.116$ 0.118$ 405 Water Softener Based on actual flow GPD x sewer rate for applicable year 0.109$ 0.111$ 0.113$ 0.116$ 0.118$ 406 Food Processor Based on actual flow GPD x sewer rate for applicable year 0.109$ 0.111$ 0.113$ 0.116$ 0.118$ 407 Rec/Sports Facility Based on actual flow GPD x sewer rate for applicable year 0.109$ 0.111$ 0.113$ 0.116$ 0.118$ 408 Inedible Renderer Based on actual flow GPD x sewer rate for applicable year 0.109$ 0.111$ 0.113$ 0.116$ 0.118$ 410 Groundwater Discharger Based on actual flow GPD x sewer rate for applicable year 0.109$ 0.111$ 0.113$ 0.116$ 0.118$ * There may be other special user categories in the future as designated by M1W which would also be charged at the sewer rate shown in the table above.

Sewer Rate per Month

18201 VON KARMAN AVENUE, SUITE 220
IRVINE, CA 92612
PHONE: (800) 969-4DTA
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds
www.FinanceDTA.com

www.FinanceDTA.com
Attachment 2: Written Objections
Objection APN 261-634-036

Parcel number 0
Date 9/10/2025
Signature

RECEIVED

CITY OF SALINAS
SEP 1 7 2025

ADMINJSTRATION
I object to the City's proposed sewer rate increase. The proposed increase in sewer rates fails to comply with Proposition 218 in California because the increase violates certain fundamental requirements designed to protect taxpayers and property owners.
• Failure to Demonstrate Proportionality: Under Proposition 218, a sewer rate increase must not exceed the proportional cost of providing the service to a particular property or customer. This means that the amount charged for sewer services should reasonably reflect the actual costs associated with serving that specific parcel or customer, and not be disproportionately higher to subsidize other customers or unrelated services.

According to the site map, no improvements are recommended for the above address area. Therefore the rate increase is in is in violation of Proposition 218, because it does not reasonably reflect the actual costs associated with serving that specific parcel or area.

Therefore, It should not be responsible for costs of the elsewhere Improvements and extensions recommended.

Any relevant planned costs should be paid by the respective areas in need. As well as through municipal bonds that will be the responsibility of developers to repay, to be addressed at the time of planned development.
• According to Figure 7-1 The Recommended Sanitary Sewer System Improvements Salinas Sewer System Master Plan
• The property listed above is in Existing Gravity Line with a existing pump station that are not in need of improvements and should have the maintenance funds existing from current rates Objection APN 004-321-040

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ATTACHMENT 3
City of Salinas Responses to Written Objections

1. Written Objection from APN 153-464-018 and 002-923-008, dated August 25, 2025 I protest the proposed sewer rate adjustments. Reference (a) is not a detailed report as required by Referenc e (b), SEC 4, (b). The subject report fails to provide any data to support project (Capital) costs, the main driver of the proposed increase in rates. Examples from Reference (a), Table C-1: the Cesar Chavez Park project is $13,172,613; the CIPP Line Sewers project is $22,987,759; the CCTV Sewers project is $12,841,286. Tables C-2 and C-3 in Reference (a) have additional projects listed with costs. Table C-4 in Reference (a) shows the cumulative costs of High Priority Projects to be $114,822, 258. How was each project cost developed/established? Reference (a) focuses primarily on how overall costs breakdown to rate payers over a 10-year period in great detail. However, the main driver and heart of the proposed rate increase, project (Capital) costs, are completely ignored. This is unacceptable and not a detailed report in compliance to Reference (b) as it fails to address and provide how project costs were developed , the main driver of this rate increase. Furthermore, where is justification for the "reasonable estimate of future O&M costs" shown as 7.5% per year; page 7 of Reference (a). This 7.5% increase is on top of the 2% annual escalation included. Why the need for a newly established $2,000,000 O&M reserve? Reference (a) totally fails to justify how costs were developed and, in many cases, needed.

Reference (b), SEC 4, (b), further states the report is to be prepared by a registered professional engineer certified by the State of California. Reference (a) has no signature nor are there any references to individuals that prepared the report and their qualifications.

Until parcel owners/rate pay ers can review a rate increase supported by data to justify project (Capital) costs, the main cost driver, no rate increase should be allowed or approved.

Response:

A. The proposed update to sewer rates is subject to the “property related fee” requirements Proposition 218 (California Constitution Article XIII D, Section 6). The proposed update to sewer rates is not subject to the “special assessment” requirements Proposition 218 (California Constitution Article XIII D, Section 4).

B. Capital improvement costs. The City has documented the estimated costs of providing the capital facilities funded by rate revenue based on CIP projects and costs identified in the Sanitary Sewer Master Plan Update and timing prepared by staff. CIP costs and timing are included in the Appendix C of the Rate Study which reflects escalated future.

C. O&M 7.5% escalation factor. The City’s O&M costs are escalated by a factor of 7.5% annually as a reasonable estimate of future costs based on several factors identified by the City including labor costs, contributions for pension liabilities, and utility costs (i.e., electricity for lift stations, etc.) which are escalating at much higher rates than inflation. (see Section III.A. of Rate Study)
D. O&M costs and 2% annual increase. The O&M costs are included in the 2% annual increase in rates over the 5-year term of the rate schedule. There are several variables that impact the net operating income after funding the CIP and Reserve Fund, including rate increases and inflation related to costs. The rates are structured to pay for O&M cost inflation and funding the reserve fund and capital improvement fund. The capital improvement fund also depends on timing of improvements needed that are not necessarily the same in any given year. (see Appendix A of Rate Study – rate model shows the various components funded each year by the sewer rate) E. $2M reserve fund. As shown in the rate model, the City will fund an operating reserve fund equal to 50% of the total annual operating expenses. The purpose of the reserve fund is to ensure that there is adequate funds to pay for annual operating expenses and capital improvements. Best practices for working ca pital target for enterprise funds is a reserve fund equal to a minimum of three months of operating expenses. The City is estimating six months of reserves due to the severe deficiencies in the existing sewer system and potential future costs. (see Appendix A of Rate Study – line item in section called “Operating Reserve Fund Balance”)

2. Written Objection from APN 261-634-036, dated August 8, 2025 This communication constitutes a written objection to the City's proposed sewer rates. I formally protest the proposed sewer rate increase for residential customers-from $5.45 to $16.35 per month-as part of the new fee structure. The magnitude and inequity of this increase are deeply concerning, especially when compared to the significantly lower rates proposed for commercial entities.

Residential Burden vs. Commercial Rates
This structure appears inconsistent with principles of proportional usage and environmental impact. It defies logic that a single household is expected to bear higher costs than businesses with far greater operational activity.

- Residents: $16.35 monthly (a nearly 200% increase)

- Businesses such as a gym with 500 members, instructional facilities, photo developers, laboratories, garage repair shops, and paint shops--each with multiple employees and far greater wastewater output (for every 10 employees)-are slated to pay just $12.75.

Lack of Transparency and Public Input
- The methodology behind this rate distribution has not been clearly presented to the public. - Have usage data and output volumes been properly studied to inform this decision? - No meeting details for the Zoom meeting mentioned in the May 2025 and Jul 2025 notices.

Cost vs. Usage Disparity
- Please provide detailed wastewater volume comparisons between household and commercial sources.
- Clarify how the proposed rates reflect actual system strain.

Socioeconomic Inequity
- This increase is especially harsh for low- and fixed-income households. - A uniform residential rate ignores differences in household size and income. - Consider implementing income-based rate adjustments, or a tiered structure for equity.

Community Impact
- Higher living costs may dissuade new residents, reduce property values, and overburden longtime citizens.
- There's concern about affordability, especially among seniors, families with children, and disabled citizens.

Alternative Solutions
- Has the City explored state or federal grants to fund infrastructure? - Have audits been performed to identify cost -saving measures before imposing steep rates?
- Could commercial rates be more accurately scaled to reflect business size and usage? Respectful Resolution
I urge the City Council to:
- Delay implementation until full data and justification are transparently shared - Consider a fairer, usage-based rate schedule
- Provide the meeting details for the Zoom meeting mentioned in the May 2025 and Jul 2025 notices.

Residents are not opposed to supporting necessary infrastructure. But fairness, transparency, and affordability must guide decisions that impact ou r daily lives. I appreciate your attention and hope you will reconsider the proposed structure in pursuit of a more equitable solution.

Response:

A. Proportionality of rates. The rates have been structured based on an equivalent dwelling unit (EDU) methodolo gy using average daily flow rates provided by Monterey One Water. The flow per unit for a particular land use is divided by the flow per unit for a single-family home to determine the flow relative to a single-family unit (EDU per Billing Unit). For insta nce, the flow per residential unit is 150 GPD, or 1 EDU. The flow for one medical office is 156 GPD, or 1.04 EDUs (156/150). Therefore, the sewer rate for a medical office is equal to $17.00 ($16.35 x

1.04). Average daily flows by land use are provided by Monterey One Water (See p. 4 of 182 of the Monterey One Water 2021 Wastewater Treatment Rate Update to 2017 Comprehensive Rate & Fee Study (Attachment 4 of this report) (See Section IV.C of the Rate Study for a discussion of the EDU methodology) (See Appendix D of the Rate Study for flow rates by land use).

B. Rate structure. The rates have been structured to incorporate business size based on various factors such as number of employees, number of hotel rooms, number of restaurant seats, etc. (See Appendix E of the Rate Study for business size units).

Monterey One Water assesses and maintains records of business sizes. As identified in the Rate Schedule, Monterey One Water assesses “special users” based on flow. Fees for “specials users” vary based on actual usage. Determination of which businesses are classifying as “special users” is made by the City based on information provided by Monterey One Water.

C. Varying residential unit types. Equivalent dwelling unit methodology is the standard used by Monterey One Water for all residential uses. This methodology consolidates the various unit types (single family homes, apartments, accessory dwellings units, etc.) into a single residential uni t. In order for the residential units to be distinguished by flow which more clearly identify usage, the City would need to conduct a comprehensive study analyzing the 44,711 residential units currently being serviced and take responsibility for assessing units and billing from Monterey One Water.

Unfortunately, given the financial strain of the Wasterwater Enterprise Fund, there is insufficient funding to conduct the study nor hire the required resources to manage billing of sewer services.

D. Financial assistance for sewer increase. On September 9, 2025 the Finance Committee recommended approval of a Residential Sewer Assistance Program for City Council consideration. The Residential Sewer Assistance Program will be presented to the City Council on September 23, 2025 and will provide qualifying ratepayers an annual discount.

E. Funding options. Currently, no state or federal funds are available for maintenance of a sewer system. Research into available grants identified a federal grant for improvements to stormwater systems due to sanitary sewer overflows (US EPA) and a state grant for connecting septic systems to sewer systems (CA State Water Resources Control Board).

F. Public notice and public outreach. As identified in this report, a total of 34,537 public hearing notices were mailed to property owners and non -owner ratepayers. Since delivery of the public notices in July, the City has maintained a sewer rate study specific website which provides all records provided all City Council and Finance Committee meetings and informational flyers and FAQs provided at in-person events. A summary of the extensive public outreach is provided in this report and includes in-person events, posted notices and flyers, newspaper notifications, radio public service announcements, social media and a podcast.

3. Written Objection from APN 253-182-003, dated August 4, 2025

1. I Protest the new proposed increase for Salinas Sewer rate.

2. Increases should be based on Flow Rate of a residence. That would be more fair to all residents.

3. Recommend the City work with CA Water and Alco to do this properly now.

Response:

A. Proportionality of rates. The rates have been structured based on an equivalent dwelling unit (EDU) methodology using average daily flow rates provided by Monterey One Water. The flow is based on 150 gallons per day estimate for a single- family unit (EDU per Billing Unit). (See Monterey One Water 2021 Wastewater Treatment Rate Update to 2017 Comprehensive Rate & Fee Study).

B. Varying residential unit types. Equivalent dwelling unit met hodology is the standard used by Monterey One Water for all residential uses. This methodology consolidates the various unit types (single family homes, apartments, accessory dwellings units, etc.) into a single residential unit. In order for the residenti al units to be distinguished by flow which more clearly identify usage, the City would need to conduct a comprehensive study analyzing the 44,711 residential units currently being serviced and take responsibility for assessing units and billing from Monter ey One Water.

Unfortunately, given the financial strain of the Wasterwater Enterprise Fund, there is insufficient funding to conduct the study nor hire the required resources to manage billing of sewer services.

4. Written Objection from 004-434-015 and 261-453-011, dated 7/22/2025 I am writing to formally protest the City of Salinas' proposed increase of the Equivalent Dwelling Unit (EDU) rate from $5.45 to $16.35, along with the proposed 2% annual escalation.

As a resident of Salinas and a ratepayer directly affected by this change, I believe this proposal is both excessive and inequitable. The increase represents a nearly 200% jump in the base rate, which is particularly burdensome for working families, small property owners, and fixed - income residents who are already grappling with rising costs across all sectors-utilities, fuel, housing, and groceries.

Key concerns include:

1. Lack of clear justification: There is insufficient transparency regarding what specifically necessitates such a steep rate increase. Ratepayers deserve a detailed and itemized breakdown of infrastructure projects, maintenance plans, or regulatory requirements that would justify this shift.

2. Economic pressure on residents: The city's proposal does not appear to account for the socioeconomic reality of many Salinas residents. According to recent census data, over 15% of Salinas residents live below the poverty line, and housing costs already place a heavy burden on the majority of households.

3. Uncapped escalations over time: While a 2% annual increase may sound modest, when compounded over a decade, this means residents will be paying over 50% more than the already-inflated $16.35 rate without any accountability built in to reassess or adjust based on changing circumstances or cost efficiencies.

4. Disproportionate impact on multifamily and rental properties: The EDU model already oversimplifies water usage and stormwater impact, and this sharp increase will unfairly impact high -density residential buildings, further fueling rent hik es and housing insecurity.

I urge the city to reconsider this increase and instead:

• Explore more gradual rate adjustments tied to actual project milestones. • Pursue state and federal infrastructure grants to reduce the financial burden on residents.
• Offer greater transparency through public meetings, impact assessments, and stakeholder feedback sessions before any final decision is made.

Until these concerns are addressed, I must firmly oppose the proposed rate increase and escalation clause.

Response:

A. Need for rate increase. The rate was calculated in order to generate revenue on an annual basis that would cover operating costs, debt service, and the necessary funding for the capital improvements and operating reserve. (See Appendix A of the Rate Study which shows the various components being funded by the annual rate revenue.) B. Financial assistance for sewer increase. On September 9, 2025 the Finance Committee recommended approval of a Residential Sewer Assistance Program for City Council consideration. The Residential Sewer Assistance Program will be presented to the City Council on September 23, 2025 and will provide qualifying ratepayers an annual discount.

C. Costs and 2% annual increase. There are several variables that impact the net operating income after funding the capital improvements and Reserve Fund, including rate increases and inflation related to costs. The rates are structured to pay for O&M cost inflation and funding the reserve fund and capital improvement fund. The capital improvement fun d also depends on timing of improvements needed that are not necessarily the same in any given year. (see Appendix A of Rate Study – rate model shows the various components funded each year by the sewer rate) D. Proportionality of rates. The rates have been s tructured based on an equivalent dwelling unit (EDU) methodology using average daily flow rates provided by Monterey One Water. The flow is based on 150 gallons per day estimate for a single- family unit (EDU per Billing Unit). (See Monterey One Water 2021 Wastewater Treatment Rate Update to 2017 Comprehensive Rate & Fee Study).

E. Varying residential unit types. Equivalent dwelling unit methodology is the standard used by Monterey One Water for all residential uses. This methodology consolidates the various unit types (single family homes, apartments, accessory dwellings units, etc.) into a single residential unit. In order for the residential units to be distinguished by flow which more clearly identify usage, the City would need to conduct a comprehensive study analyzing the 44,711 residential units currently being serviced and take responsibility for assessing units and billing from Monterey One Water.

Unfortunately, given the financial strain of the Wasterwater Enterprise Fund, there is insufficient funding to conduct the study nor hire the required resources to manage billing of sewer services.

5. Written Objection from APN 261-637-007, dated July 28, 2025 I object to the proposed Increased sewer rates. Like all Salinas residents, the current bimonthly fee is $115.85 which is $57.92 each month.

As indicated in your proposal of $16.35 added to $57.92 each month for FY 2025-26, the monthly cost would be $74.27.

When $16.35 divided by $57.92 X 100 = 28.23% increase for FY 2025-26.

There is no explanation for expenditure for such a high percentage of increase.

The $16.68 increase for FY 2026-27 to $74.27 which makes the cost of $90.95 for each month.

When $16.68 is divided by $74.27 X 100 = 22.45% of increase.

If approved by the city council, and by FY 2026-27, we would be paying nearly twice the cost of what we are paying today.

The percentage of the proposed increase is so rapid and aggressive with no accountability and no oversight.

There is no Sunset clause. How much longer that we continue to pay? When will it end? It is like sending a blank check with no date and to no end.

I have a small household with two occupants. It is unfair that I am paying the same amount as the other household of twelve people.

I sincerely hope that the City Council will navigate the hard facts and disapprove the proposed rate of increase.

Response:

A. Proportionality of rates. The rates have been structured based on an equivalent dwelling unit (EDU) methodology using average daily flow rates provided by Monterey One Water. The flow is based on 150 gallons per day estimate for a single- family unit (EDU per Billing Unit). (See Monterey One Water 2021 Wastewater Treatment Rate Update to 2017 Comprehensive Rate & Fee Study).

B. Varying residential unit types. Equivalent dwelling unit methodology is the standard used by Monterey One Water for all residential uses. This methodology consolidates the various unit types (single family homes, apartments, accessory dwellings units, etc.) into a single residential unit. In order for the residential units to be distinguished by flow which more clearly identify usage, the City would need to conduct a comprehensive study analyzing the 44,711 residential units currently being serviced and take responsibility for assessing un its and billing from Monterey One Water.

Unfortunately, given the financial strain of the Wasterwater Enterprise Fund, there is insufficient funding to conduct the study nor hire the required resources to manage billing of sewer services.

6. Written Objection from APN 004-321-040, dated 8/12/2025 and 9/10/2025 I object to the City's proposed sewer rate increase. The proposed increase in sewer rates fails to comply with Proposition 218 in California because the increase violates certain fundamental requirements designed to protect taxpayers and property owners. • Failure to Demonstrate Proportionality: Under Proposition 218, a sewer rate increase must not exceed the proportional cost of providing the service to a particular property or customer. This means that the amount charged for sewer services should reasonably reflect the actual costs associated with serving that specific parcel or customer, and not be disproportionately higher to subsidize other customers or unrelated services.

Therefore, It should not be responsible for costs of the elsewhere Improvements and extensions recommended.

Response:

A. Proportionality of rates. The rates have been structured based on an equivalent dwelling unit (EDU) methodology using average daily flow rates provided by Monterey One Water. The flow is based on 150 gallons per day estimate for a single- family unit (EDU per Billing Unit). (See Monterey One Water 2021 Wastewater Treatment Rate Update to 2017 Comprehensive Rate & Fee Study).

B. Capital improvement costs. The City has documented the estimated costs of providing the capital facilities funded by rate revenue based on CIP projects and costs identified in the Sanitary Sewer Master Plan Update and timing prepared by staff. Costs fo r improvement are based on analysis of the entire system . CIP costs and timing are included in the Appendix C of the Rate Study which reflects escalated future.

Monterey
One Water

2021
Wastewater Treatment Rate Update

to 2017
Com
prehensive Rate & Fee Study

Attachment 4:

Monterey One Water 2021 Wastewater
Treatment Rate Update
Backgrou
nd
During Fiscal
Year 2016-17, Monterey One Water (“M1W”), which was then known as the Monterey Regional Water Pollution Control Agency, engaged Bartel Wells Associates (“BWA”) to undertake a comprehensive analysis of M1W’s revenues and budget to make recommendations regarding M1W’s wastewater treatment rates and all of M1W’s other rates and charges. As part of its work, BWA delivered to M1W a detailed report entitled “Monterey Regional Water Pollution Control Agency, Comprehensive Rate & Fee Study” (the “BWA Study”).

In 2017, M1W adopted a three-year schedule (FY 2017-18 through 2019-20) of wastewater treatment rates that was based on the analysis and recommendations in the BWA Study. For FY 2020-21, which began during the height of the COVID-19 pandemic, rather than proposing a multi-year rate schedule, M1W adopted a one-time rate increase that was based on BWA’s work.

The purpose of this Update is to recommend a five-year schedule of wastewater treatment rates proposed to begin July 1, 2021, that will meet M1W’s current projections of the expenses necessary to provide wastewater treatment services, as well as build operating and capital reserves that meet the reserve policies adopted by the M1W Board. Because much of M1W’s infrastructure is aging, M1W has adopted a 10-year Capital Improvement Plan that is designed to replace and improve much of M1W’s infrastructure so that M1W can continue to provide reliable, high-quality, and environmentally sensitive wastewater treatment services to its existing customers. M1W intends to undertake its capital improvement projects on a pay-as-you-go basis, and make at most limited use of the new debt. Therefore, the, the expense budgets described in this Update for each year include debt service payable during that year on outstanding debt, as well as current expenses for capital improvement projects.

Methodology
This Update
was prepared by M1W staff.

The BWA Study, which is not even five years old, contained BWA’s expert analysis regarding the proportional burden different types of users and system use put on the M1W system. That analysis and the resulting calculations are unlikely to change significantly over a few years, and it would be unnecessary and prohibitively expensive to redo this analysis every time M1W considers rate increases.

Therefore, this update limits itself to setting forth budget projections for each of the next five fiscal years, determining the total wastewater treatment rate revenue necessary each year to cover the costs of providing wastewater treatment services, determining the percentage increase in revenue between prior year wastewater treatment rate revenue and the revenue requirement for that year, and then increasing, each wastewater rates by that percentage. In that way, the proportionality of the rates for different users types is maintained, and the rates will continue to meet the requirements of Article XIII D, Section 6(b) of the California Constitution. This update incorporates the BWA Study.

M1W’s wastewater treatment rates fund the costs of the services used by the customers who are charged these rates. The rates do not fund costs associated with the Castroville Seawater Intrusion Project or the Pure Water Monterey Groundwater Replenishment Project, which are projects that produce usable water that is sold to customers.

Budget
The following is a c
ash flow and expenses analysis that projects the wastewater treatment rates necessary to fund wastewater treatment expenses
over the next five fiscal years:

Increase in
Revenue Requirement
The following sho
ws the percentage increase in wastewater treatment rate revenue that is necessary to meet the expenses each year of providing wastewater treatment services to customers who are subject to wastewater treatment rates:

Projected Rate Revenue I
ncreases
Fiscal Year 21-22 22-23 23-24 25-26 26-27
Projected Rate
Increases 46.84% 19.69% 9.62% 7.72% 6.87%

Proposed Rate
s
The table on
the next page shows the rate schedule for the wastewater treatment rate that is proposed for each of the next five fiscal years. Each year’s proposed rates are calculated by increasing the prior year’s rates by the percentage shown in the revenue requirement table.

Wast
ewater Fund Five Year Projections
Projected Projected Projected Projected Projected
with with with with with
Proposed Proposed Proposed Proposed Proposed
Actual Projected Increase Increase Increase Increase Increase 19-20 20-21 21-22 22-23 23-24 24-25 25-26
Wastewater Treatment Charges 28,952,230 31,786,190 42,626,771 50,943,683 55,661,367 59,811,390 63,788,768 Military Wastewater Charges 380,778 383,155 383,155 383,155 383,155 383,155 383,155 Other Fees 1,108,872 1,049,438 1,081,000 1,113,000 1,146,000 1,180,000 1,215,000 Other Revenues 4,110,229 4,812,632 2,399,126 2,838,000 2,838,000 2,838,000 2,838,000 Total Projected Wastewater Revenues 34,552,137 38,031,443 46,490,100 55,277,888 60,028,574 64,212,600 68,224,981 Prefunding PERS Obligation - - 400,000 400,000 400,000 400,000 400,000 Administration 6,041,569 6,410,850 7,521,518 8,311,277 9,183,961 10,148,277 11,213,846 Plant Operations 17,308,734 20,955,111 23,908,716 26,735,131 29,762,320 32,887,364 36,340,537 Debt Service 2,095,514 2,129,507 2,129,507 2,129,507 2,129,507 2,129,507 2,129,507 10 Year CIP 5,706,755 4,780,000 4,065,000 14,185,000 16,280,000 13,551,000 14,530,000 Total Projected Expenses 31,152,572 34,275,468 38,024,741 51,760,915 57,755,788 59,116,148 64,613,890 Total Projected Additions to Reserves 3,399,565 3,755,975 8,465,359 3,516,973 2,272,786 5,096,452 3,611,091 Ending Reserves 10,307,144 14,063,119 22,528,478 26,045,451 28,318,237 33,414,689 37,025,780 Operating Reserves 6,307,144 8,063,119 9,361,778 12,878,751 15,151,537 20,247,989 23,859,080 % of Debt / Operating Budget 25% 27% 28% 35% 37% 45% 50% Capital Reserves 4,000,000 6,000,000 13,166,700 13,166,700 13,166,700 13,166,700 13,166,700 % of Ten Year CIP 3% 5% 10% 10% 10% 10% 10%
Monterey One Water
Adopted Sewer Serv
ice Charges and Rates - Appendix A
Code Category
Avg. Flow
(gpd)
BOD
(mg/l)
SS
(mg/l)
Monthly Rate
FY 19-20
Proposed
Monthly Rate
Effective 8/6/21
Proposed
Monthly Rate
Effective 7/1/22
Proposed
Monthly Rate
Effective 7/1/23
Proposed
Monthly Rate
Effective 7/1/24
Proposed
Monthly Rate
Effective 7/1/25 Billing Unit
245 Animal Hospital 292 250 100 40.70 53.10 63.10 73.10 84.65 89.75 Location/each business 341-346 Auto/Paint/Body Shops and Stores 117 150 150 15.45 20.15 23.95 27.75 32.15 34.10 Every 10 employees 270 Bakery 230 1000 600 63.35 82.60 98.10 113.60 131.55 139.45 Location / each business 265 Bar 254 200 200 36.20 47.20 56.05 64.95 75.25 79.80 Location / each business 222 Bed & Breakfast Inn - Per Unit 43 310 120 6.35 8.30 9.90 11.50 13.35 14.15 Each room 282 Bowling Center 1146 150 150 151.15 197.05 234.00 270.95 313.80 332.60 Location / each business 211 Business - Vacant 117 150 150 9.25 12.10 14.40 16.70 19.35 20.55 Location / each business 001-099 Business/Government 117 150 150 15.45 20.15 23.95 27.75 32.15 34.10 Every 10 employees 296 Church 1-100 Members 117 150 150 15.45 20.15 23.95 27.75 32.15 34.10 Location / each business 297 Church Over 100 Members 117 150 150 30.90 40.30 47.90 55.50 64.30 68.20 Location / each business 205 Demolished 117 150 150 - - - - - - Each living unit 242 Dental Office (Per Dentist) 215 130 80 26.50 34.55 41.05 47.55 55.10 58.45 Each licen sed dentist
353 Dry Cleaner 386 150 150 50.90 66.35 78.80 91.25 105.70 112.05 Location / each business 244 General Hospital - (per Bed) 256 250 100 35.70 46.55 55.30 64.05 74.20 78.65 Each bed of licen sed capacity
283-289 Gym 117 150 150 15.45 20.15 23.95 27.75 32.15 34.10 Every 500 members 295 Instructional Facility (per student
) 117 150 150 15.45 20.15 23.95 27.75 32.15 34.10 Each busin ess
311-312 Laboratory 117 150 150 15.45 20.15 23.95 27.75 32.15 34.10 Every 10 employees 354 Laundromat (per washing
machine) 102 150 110 13.05 17.05 20.25 23.45 27.20 28.85 Each washin g machine
241 Medical Office - (per physic
ian) 156 130 80 19.20 25.05 29.75 34.45 39.90 42.30 Each Licensed Ph ysician
416 Mobile Washers (Annual) 34 20 150 40.70 53.10 63.10 73.10 84.65 89.75 Each business 290 Mortuary 310 800 800 83.60 109.00 129.45 149.90 173.60 184.00 Location / each business 221 Motel / Hotel - (per room) 66 310 120 9.80 12.80 15.20 17.60 20.40 21.65 Each room 266 Nightcl
ub 760 200 200 108.30 141.20 167.70 194.20 224.90 238.40 Location / each business 301 Photo Developer 117 150 150 15.45 20.15 23.95 27.75 32.15 34.10 Location / each business 321-326 Printer 117 150 150 15.45 20.15 23.95 27.75 32.15 34.10 Every 10 employees 101,106 Residential - Vacant 117 150 150 14.75 19.25 22.90 26.55 30.75 32.60 Each living unit 102,105,107,109 Residential/Apartments/Condos (per unit) 150 300 300 24.55 32.00 38.00 44.00 50.95 54.00 Each livi ng unit
243 Rest Home/Convalescent - (per bed) 43 250 100 6.00 7.85 9.35 10.85 12.60 13.40 Each bed of licen sed capacity
261 Restaurant (1 meal/
day per seat) 6 1000 600 1.65 2.15 2.60 3.05 3.55 3.80 Each restaurant seat 262 Restau
rant (2 meals/da
y per seat) 9 1000 600 2.45 3.20 3.80 4.40 5.10 5.45 Each restaurant seat 263 Restau
rant (3 meals/da
y per seat) 17 1000 600 4.65 6.10 7.25 8.40 9.75 10.35 Each restaurant seat 264 Restau
rant with Bar (per seat) 17 1000 600 4.65 6.10 7.25 8.40 9.75 10.35 Each restaurant seat 107,109 Reti
rement Community 50 300 300 24.55 32.00 38.00 44.00 50.95 54.00 Each living unit 291 School (Minimum) 117 150 150 15.45 20.15 23.95 27.75 32.15 34.10 Each business 292 School (Grades 0-6) (per student) 2 130 100 0.25 0.33 0.40 0.47 0.55 0.59 School Popul ation
293 School (Grades 7-College) (per student
) 4 130 100 0.50 0.66 0.79 0.92 1.07 1.14 School Popul ation
294 School (Boarding) (per student) 40 233 165 5.70 7.45 8.85 10.25 11.90 12.65 School Popul ation
331-332 Service Station/Garage (per 10 em
ployees) 112 180 280 16.50 21.55 25.60 29.65 34.35 36.40 Every 10 employees 231 Supermarkets 638 800
800 172.15 224.40 266.50 308.60 357.40 378.80 Location 267 Takeout Food - Small 283 500 300 53.10 69.25 82.25 95.25 110.30 116.90 1 cash register / checkout line 268 Takeout Food – Medium 697 500 300 130.85 170.60 202.60 234.60 271.70 288.00 2-3 cash registers / checkout lines 269 Takeout Food – Large 1270 500 300 238.40 310.75 369.05 427.35 494.90 524.55 4 or more cash registers / checkout lines 281 Theater (per screen) 377 150 150 49.75 64.85 77.05 89.25 103.35 109.55 Per screen at each locati on
Special User Charge Formula Accounts
351 Laundry: Industrial Usage * * Based on "Special User Charge Formula" * 352 Laundry: Commercial Usage
450 240 Based on "Special User Charge Formula" *
366 Car Wash Usage 20 150 Based on "Special User Charge Formula" * 361 Major Hotel Usage 500 600 Based on "Special User Charge Formula" * 367 Truck Wash Usage 180
270 Based on "Special User Charge Formula" *
401 Misc. Special User Usage
* * Based on "Special User Charge Formula" *
402 Plastics Usage *
* Based on "Special User Charge Formula" *
403 Chemicals Usage
* * Based on "Special User Charge Formula" *
404 Etching Usage
* * Based on "Special User Charge Formula" *
405 Water Softener Usage *
* Based on "Special User Charge Formula" *
406 Food Processing Usage *
* Based on "Special User Charge Formula" *
407 Rec/Sports Center Usage 150 150 Based on "Special User Charge Formula" * 408 Inedible Ren
der Usage * * Based on "Special User Charge Formula" *
409 Electronics Usage
* * Based on "Special User Charge Formula" *
410 Groundwater Usage *
* Based on "Special User Charge Formula" *
Note: The above rates do not in
clude additional collection/conveyance fees assessed by the member entities * These are set through samples taken by Source Control.

Wastewater
Strength

Special U
ser Formulas
In addition, the special charge formulas for the special users mentioned on the schedule of fees for each of the five years are as follows:

PROPOSED SPECIAL USER FORMULA: Effective August 5, 2021 K = (1,564,293.45 x V) + (1877.05 x V x B) + (1442.65 x V x S)

PROPOSED SPECIAL USER FORMULA: Effective July 1, 2022
K = (1,857,598.47x V) + (2,229.00 x V x B) + (1,713.15 x V x S)

PROPOSED SPECIAL USER FORMULA: Effective July 1, 2023
K = (2,150,913.27 x V) + (2,580.96 x V x B) + (1983.66 x V x S)

PROPOSED SPECIAL USER FORMULA: Effective July 1, 2024
K = (2,490,757.57 x V) + (2,988.75 x V x B) + (2297.08 x V x S)

PROPOSED SPECIAL USER FORMULA: Effective July 1, 2025
K = (2,639,953,95 x V) + (3,167.78 x V x B) + (2,434.68 x V x S)

Whereas fo
r all formulas:

K = Ann
ual User Charge for Each User
V = Average Daily Sewage Flow in Million Gallons per Day (MGD) B = Average Sewage BOD Concentration in mg/l
S = Average Sewage SS Concentration in mg/l

May 30, 2017
Pollution Control Agency
Monterey Regional Water
Comprehensive Rate & Fee Study

May 30, 2017

Monterey Regional Water Pollution Control Agency
5 Harris Court, Building D
Monterey, CA 93940

Attn: Tori Hannah, Chief Financial Officer

Re: Comprehensive Rate & Fee Study

Bartle Wells Associates is pleased to submit the attached Comprehensive Rate & Fee Study.

The study develops long‐term financial projections, calculates wastewater rates designed to fund operating and capital needs over the next three years, and includes updates to MRWPCA’s Capacity Charges and Additional Fees and Charges. Recommended rates, fees and charges were developed with substantial input from MRWPCA and are designed to reflect the cost of providing service, comply with legal requirements, and be fair and equitable to all customers.

I enjoyed working with MRWPCA on this assignment and appreciate the ongoing collaboration, assistance, and input received throughout the project. Please contact me anytime if you have questions about the recommendations presented in this report or any related issues.

Sincerely,

BARTLE WELLS ASSOCIATES

Alex Handlers, CIPMA
Principal/Vice‐President
1889 Alcatraz Avenue
Berkeley, CA 94703
Tel: 510 653 3399
www.bartlewells.com

BARTLE WELLS ASSOCIATES
MRWPCA Comprehensive Rate & Fee Study
TABLE OF CONTENTS
1 Background & Summary of Recommendation ................................................ 1

1.1 Background ...................................................................................................................... 1

1.2 Wastewater System Overview ......................................................................................... 1

1.3 Study Objectives .............................................................................................................. 2

1.4 Process ............................................................................................................................. 3

1.5 Summary of Recommendations ...................................................................................... 3 2 Wastewater Financial Plan & Rate Study ........................................................ 7

2.1 Historical Rates ................................................................................................................ 7

2.2 Sewer Rate Surveys ........................................................................................................ 11

2.3 Constitutional Rate Requirements................................................................................. 13

2.4 Rate‐Setting Methodology ............................................................................................. 13

2.5 Sewer Financial Overview & Financial Challenges ......................................................... 15

2.6 Financial Challenges / Key Drivers of Rate Increases .................................................... 15

2.6.1 Capital Improvements / Aging Infrastructure ..................................................... 15

2.6.2 Increased Operating Costs .................................................................................. 16

2.7 10‐Year Cash Flow Projections ....................................................................................... 17

2.8 Debt Service Coverage Projections ................................................................................ 19

2.9 Rate Revenue Increases ................................................................................................. 21

2.10 Sewer Rate Increase Alternatives .................................................................................. 21

2.11 Cost Recovery Allocations .............................................................................................. 21

2.12 Unit Cost Derivation ....................................................................................................... 22

2.13 Proposed Wastewater Treatment Rates ....................................................................... 23

2.14 Rate Impacts .................................................................................................................. 25 3 Capacity Charge Update ............................................................................... 27

3.1 Capacity Charges ............................................................................................................ 27

3.2 Capacity Charge Surveys ................................................................................................ 28

3.3 Government Code .......................................................................................................... 30

3.4 Fee Methodology: Average Cost Approach ................................................................... 30

3.5 Cost Recovery Allocation ............................................................................................... 31

3.6 Unit Rate Derivation & Capacity Charge per EDU ......................................................... 33

3.7 Capacity Charge Ordinance: Purpose of Charge ........................................................... 36

3.8 Capacity Charge Credits for Redevelopment ................................................................. 36

3.9 Future Fee Adjustments & Updates .............................................................................. 36 4 Additional Fee & Charge Update .................................................................. 37

4.1 Additional Fees & Charges ............................................................................................. 37

4.2 Legal Requirements ....................................................................................................... 37

4.3 Fee Update Methodology .............................................................................................. 38

4.4 Updated Fee Recommendations ................................................................................... 39

4.5 Future Fee Adjustments & Updates .............................................................................. 39

BARTLE WELLS ASSOCIATES
MRWPCA Comprehensive Rate & Fee Study

LIST OF TABLES
Table 1 – Accounts & Monthly Rates ............................................................................................ 10 Table 2 ‐ 10‐Year Cash Flow Projections ....................................................................................... 18 Table 3 ‐ 10‐Year Debt Service Coverage Projections ................................................................... 20 Table 4 – Projected Rate Revenue Increases ................................................................................ 21 Table 5 – Cost Allocations ............................................................................................................. 22 Table 6 – Projected Rate Revenue Increases ................................................................................ 22 Table 7 – Unit Rates for Wastewater Flow & Strength ................................................................. 23 Table 8 – Proposed Wastewater Treatment Rates ....................................................................... 24 Table 9 – Residential Rate Impact................................................................................................. 26 Table 10 – Costs Allocation of Facilities & Assets ......................................................................... 32 Table 11 – Capacity Charge Components ..................................................................................... 33 Table 12 – Capacity Charge per EDU ............................................................................................ 34 Table 13 – Proposed Capacity Charges ......................................................................................... 35 Table 14 – Updated Fees & Charges ............................................................................................. 40

LIST OF FIGURES
Figure 1 – Historical Monthly Residential Charges ......................................................................... 7 Figure 2 – Historical Monthly Residential Charges vs. Inflation ..................................................... 8 Figure 3 – Regional Sewer Rate Survey......................................................................................... 11 Figure 4 – Benchmark Agency Sewer Rate Survey ....................................................................... 12 Figure 5 –Projected Revenues & Expenses ................................................................................... 19 Figure 6 – Historical & Projected Sewer Charges ......................................................................... 25 Figure 7 – Historical Capacity Charges per EDU............................................................................ 27 Figure 8 – Regional Sewer Capacity Charge Survey ...................................................................... 28 Figure 9 –Sewer Capacity Charge Survey of Benchmark Agencies ............................................... 29

APPENDICES
Appendix A – MRWPCA Financial Plan & Rate Study Tables
Appendix B – Capacity Charge Update Tables
Appendix C – Interruptible Rate Update Tables
Appendix D – Additional Fee & Charge Updates – Tables & Worksheets BARTLE WELLS ASSOCIATES 1
MRWPCA Comprehensive Rate & Fee Study
1 BACKGROUND & SUMMARY OF RECOMMENDATION

1.1 Background
The Monterey Regional Water Pollution
Control Agency (MRWPCA or Agency) is a
Joint Powers Authority that provides
wastewater conveyance, treatment and
effluent disposal services to a population
of roughly 250,000 and businesses in
northern Monterey County. Member
agencies include the Cities of Monterey,
Pacific Grove, Seaside, Sand City, Salinas,
Del Rey Oaks, and the Marina Coast
Water District, Fort Ord Military
Reservation, Castroville Community
Services District, Moss Landing County
Sanitation District, Boronda County Sanitation District, and th e County of Monterey. MRWPCA was originally formed in 1972 and expanded in subsequent years as additional agencies joined. MRWPCA is governed by an 11‐member Board of Directors with one Directo r representing each member agency.

1.2 Wastewater System Overview
MRWPCA owns and operates a regional wastewater treatment plant with treatment capacity of approximately 29.6 million gallons per day (average dry weather flow), a 60‐inch diameter outfall pipeline extending 2 miles into the Monterey Bay, 25 wastewater pump stations, 35 pressure‐vacuum stations, and approximately 30 miles of pipelines that convey wastewater from each of the member agencies to the regional treatment plant, and water recycling facilities. Each of the agencies operates its own local wastewater collection system.

MRWPCA’s aging wastewater conveyance and treatment facilities are in need of a substantial amount o f c a p i t a l i m p r o v e m e n t s t o a d d r e s s c u r r e n t d e f i c i e n c i e s a n d r e habilitate and replace aging infrastructure. A 10‐year capita l improvement program develope d by the MRWPCA’s Engineering Services Department identifies over $92 million of capital impr ovements with future funding needs averaging approximately $10 millio n per year. MRWPCA is curren tly working with an engineering consulting firm on a comprehensive evaluation of its wastewater conveyance system to identify and prioritize capital improvements, and plans on subsequently cond ucting a similar analysis for the wastewater treatment plant. These studies may identify additio nal infrastructure improvement needs.

BARTLE WELLS ASSOCIATES 2
MRWPCA Comprehensive Rate & Fee Study
MRWPCA is a leader in water recycling. MRWPCA participates in a partnership with Monterey County Water Resources Agency to provide recycled water for agricultur al purposes and to help minimize groundwater overdraft and seawater intrusion into underground aquifers. Roughly 60% of MRWPCA’s treated wastewater effluent is currently recycled each year. Additionally, MRWPCA is in the process of moving forward with Pure Water Monterey, an advanced water recycling project being developed in partnership with the Monterey Peninsula Water Management District and other regional agencies. Pure Water Monterey will provide highly‐treated recycled water for irrigation and groundwater replenishment to augment regional water supplies an d provide a sustainable solution for the region’s water supply chal lenges. With Pure Water Monterey, MRWPCA anticipates that approaching 100% of its treated wastewater will be recycled for beneficial purposes.

1.3 Study Objectives
In 2016, MRWPCA retained Bartle Wells Associates (BWA) to develop a comprehensive rate and fee study. Key goals and objectives of the study include:

Wastewater Financial Plan & Rate Study
 Develop a 10‐year financial plan to identify future revenue requirements, evaluate financial scenarios, and determine rate increases needed to fund MRWPCA’s operating and capital programs while maintaining long‐term financial stability.  Develop wastewater treatment rates that:
o Recover the costs of providing service,
o Are fair and equitable to all customer classes,
o Comply with the legal requirements of the California Constitution, Article 13D, Section 6 (established by Proposition 218) and other California law; o Provide adequate funding for projected capital improvement needs, o Maintain a prudent level of fund reserves.
 Aim for steady, gradual annual rate increases, to the extent possible, to help minimize the annual impact on customers and mitigate the need for larger, periodic rate spikes.

Capacity Charge Update
 Review current capacity charges and evaluate approaches for developing updated charges.  Develop updated capacity charges designed to:
o Recover the cost of wastewater system infrastructure and assets benefitting new development,
o Are consistent with industry standards and practices, and o Comply with Government Code 66013.

BARTLE WELLS ASSOCIATES 3
MRWPCA Comprehensive Rate & Fee Study
Additional Fee & Charge Update
 Review and update MRWPCA’s additional fees and charges to reflect the current cost of providing service for each type of fee or charge and comply with Proposition 26.  Work with MRWPCA to identify the staffing needs, time, and materials associated with each type of fee. Evaluate overhead allocation alternatives, calculate billable rates for staff time including salary and benefits, and calculate appropriate levels of facility cost recovery when applicable.

This report summarizes key findings and recommendations. Final recommendations were developed with substantial input from MRWPCA staff and input from the Bud get/Personnel Committee (BPC) and Board of Directors.

1.4 Process
BWA worked closely with MRWPCA during development of the financial plan and rate study, capacity charge update, and fee update. In addition to a number of meet ings and phone conferences with staff, the process included a number of public meetings with the BPC and Board to review findings, discuss draft recommendations and alternatives, and receive input from Board Members and the community. A schedule of public meetings is listed below:

1.5 Summary of Recommendations
The tables on the following pages show recommended rates, capac ity charges, and additional fees and charges. To keep future charges aligned with the costs of providing service, capacity charges can be adjusted annually by the change in the Engineering News‐Record (ENR) Construction Cost Index, a widely‐used measure of construction cost inflation; and Additio nal Fees & Charges can be adjusted annually by the Consumer Price Index (CPI).

Date Meeting Purpose
January 13 BPC Meeting Study introduction; present preliminary f indings January 30 Board Meeting Study introduction; present preliminary findings February 10 BPC Meeting Receive preliminary input on rates & fin ances February 27 Board Meeting Review draft financial & rate scenario s & receive input March 10 BPC Meeting Receive additional input on rates March 27 Board Meeting Present final rate recommendations April 7 BPC Meeting Review preliminary updates of capacity charg es & interruptible rates April 24 Board Meeting Review draft recommendations for capacity charges & interruptible rates May 12 BPC Meeting Review preliminary update of additional fees & charges May 22 Board Meeting Review draft recommendations for update of additional fees & charges June 5 Board Meeting Hold Proposition 218 Public Hearing for pro posed rate increases; Consider adoption of proposed rates, capacity charges, & fee updates BARTLE WELLS ASSOCIATES 4
MRWPCA Comprehensive Rate & Fee Study

Average Current
User Category Flow BOD SS Monthly July 1 July 1 July 1 Billing Unit (gpd) (mg/l) (mg/l) Rate 2017 2018 2019

RESIDENTIAL
B. 102/105
107/109 Residential 150 300 300 $15.85 $17.40 $19.15 $21.05 Each living unit

COMMERCIAL/INSTITUTIONAL
A. 001 Business/Government 117 150 150 $10.75 $11.50 $12.35 $13.25 Location /each business C. 102 Transient Occupancy (Resid) 150 300 300 15.85 17.40 19.15 21.05 Each living unit D. 221 Hotel/Motel 66 310 120 6.70 7.20 7.80 8.40 Each room E. 222 Bed & Breakfast Inn 43 310 120 4.45 4.75 5.10 5.45 Each room F. 231 Supermarket 638 800 800 107.00 119.10 132.60 147.60 Location G. 241 Medical Office 156 130 80 13.75 14.60 15.50 16.45 Each licensed phys ician H. 242 Dental Office 215 130 80 18.80 20.00 21.30 22.70 Each licensed denti st I. 243 Rest Home/Convalescent 43 250 100 4.20 4.50 4.80 5.15 Each bed of li censed capacity J. 244 General Hospital 256 250 100 24.70 26.50 28.50 30.60 Each bed of lic ensed capacity K. 245 Animal Hospital 292 250 100 28.55 30.50 32.65 34.90 Location/each business L. 261 Restaurant–One Meal 6 1000 600 1.05 1.15 1.30 1.40 Each restaurant seat 262 Restaurant–Two Meals 9 1000 600 1.55 1.70 1.90 2.10 Each restaurant seat 263 Restaurant–Three Meals 17 1000 600 3.00 3.30 3.65 4.00 Each restaurant seat M. 264 Restaurant w/Bar 17 1000 600 3.00 3.30 3.65 4.00 Each restaurant seat N. 265 Bar 254 200 200 24.60 26.60 28.70 31.05 Location/each business O. 266 Nightclub 760 200 200 73.05 79.15 85.75 92.85 Location/each business P. 267 Takeout Food–Small 283 500 300 35.65 38.70 41.95 45.55 Location/each business 268 Takeout Food–Medium 697 500 300 87.20 94.85 103.15 112.20 Location/each business 269 Takeout Food–Large 1,270 500 300 159.00 172.90 188.00 204.40 Location/each business Q. 270 Bakery 230 1000 600 41.20 45.15 49.50 54.30 Location/each business R. 281 Theater 377 150 150 33.85 36.55 39.50 42.65 Per screen at each location S. 282 Bowling Center 1,146 150 150 103.00 111.20 120.05 129.60 Location/each business T. 290 Mortuary 310 800 800 52.25 58.05 64.55 71.70 Location/each business U. 291 School (Minimum) 117 150 150 10.75 11.50 12.35 13.25 Each business 292 School (Grades 0‐6) 21 3 0 1 0 0 0.13 0.15 0.18 0.21 School population 293 School (Grade 7‐College) 41 3 0 1 0 0 0.28 0.32 0.37 0.43 School population 294 Boarding School 40 233 165 3.25 3.75 4.30 4.90 School population V. 331 Service Station/Repair 112 180 280 11.20 12.10 13.10 14.15 Location/each business 332 Svc Station/Repair (11‐20) 112 180 28 0 11.20 12.10 13.10 14.15 Location/each business W. 353 Dry Cleaners 386 150 150 35.05 37.70 40.55 43.65 Location/each business X. 354 Laundromats 102 150 110 9.00 9.70 10.40 11.20 Each washing machine CC. 101 Vacant Residence ‐‐‐ ‐‐‐ ‐‐‐ 9.15 10.45 11.50 12.65 Each living unit 211 Vacant Business ‐‐‐ ‐‐‐ ‐‐‐ 7.90 6.90 7.40 7.95 Each location/each business 416 Mobile Washers (per year) 34 20 150 25.00 29.40 34.60 40.70 Each mobile washer per year SPECIAL USER CHARGE FORMULA ACCOUNTS
Y. 351 Laundry: Industrial U s a g eS a m p l eS a m p l e 352 Laundry: Commercial Usage 450 240
Z. 366 Car Wash Usage 20 150
AA. 361 Major Hotel Usage 500 600
BB. 367 Truck Wash Usage 180 270
407 Rec/Sports Center Usage 150 150
401‐410 Other U s a g eS a m p l eS a m p l e
SPECIAL USER CHARGE FORMULA RATES
Flow Charge $687,000 $786,093 $899,480 $1,029,221 $ per mgd BOD Charge 815 936 1,075 1,235 $ per mgd x BOD strength SS Charge 337 476 672 950 $ per mgd x SS strength
Fixed Charge 2.84 ‐‐‐ ‐‐‐ ‐‐‐
SPECIAL USER CHARGE FORMULA
Charge = (Flow Charge x V) + (BOD Charge x V x B) + (SS Charge x V x S) Where: V = Average Daily Sewage Flow in Million Gallons per Day (mgd) B = Average Sewage Biological Oxygen Demand (BOD) Concentration in mg/l C = Average Sewage Suspended Solids (SS) Concentration in mg/l "Special User" means any establishment, which cannot be classif ied in any other category, based on individual flow and strengt h characteristics. The special user charge is determined based on applying the formula shown b elow. Actual water usage is ordinarily the basis for the speci al user's average daily flow.

Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Proposed MRWPCA Wastewater Treatment Rates
Wastewater Strength Monthly Rate per Unit Effective
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MRWPCA Comprehensive Rate & Fee Study
EDUs Capacity
Customer Class Flow/Unit Flow BOD SS Strength Flow Factor x Charge gpd Factor1 mg/l mg/l Factor2 Strength Factor per Unit

RESIDENTIAL
102/105
107/109 Residential Each living unit 150 1.00 300 300 1.00 1.000 $3,389.13

COMMERCIAL/INSTITUTIONAL
A. 001 Business/Government Location/each business 117 0.78 150 150 0.79 0.613 2,076.75 D. 221 Hotel/Motel Each room 66 0.44 310 120 0.86 0.380 1,287.00 E. 222 Bed & Breakfast Inn Each room 43 0.29 310 120 0.86 0.247 838.50 F. 231 Supermarket Location 638 4.25 800 800 1.71 7.293 24,717.09 G. 241 Medical Office Each licensed physician 156 1.04 130 80 0.72 0.746 2,527.96 H. 242 Dental Office Each licensed dentist 215 1.43 130 80 0.72 1.028 3,484.05 I. 243 Rest Home/Convalescent Each bed of licensed capacit y 43 0.29 250 100 0.81 0.232 786.11 J. 244 General Hospital Each bed of licensed capacit y 256 1.71 250 100 0.81 1.381 4,680.12 K. 245 Animal Hospital Location/each business 292 1.95 250 100 0.81 1.575 5,338.26 L. 261 Restaurant–One Meal Each restaurant seat 6 0.04 1,000 600 1.68 0.067 228.04 262 Restaurant–Two Meals Each restaurant seat 9 0.06 1,000 600 1.68 0.101 342.06 263 Restaurant–Three Meals Each restaurant seat 17 0.11 1,000 600 1.68 0.191 646.11 M. 264 Restaurant w/Bar Each restaurant seat 17 0.11 1,000 600 1.68 0.191 646.11 N. 265 Bar Location/each business 254 1.69 200 200 0.86 1.451 4,918.64 O. 266 Nightclub Location/each business 760 5.07 200 200 0.86 4.342 14,717.20 P. 267 Takeout Food–Small Location/each business 283 1.89 500 300 1.13 2.126 7,204.09 268 Takeout Food–Medium Location/each business 697 4.65 500 300 1.13 5.235 17,742.92 269 Takeout Food–Large Location/each business 1,270 8.47 500 300 1.13 9.539 32,329.29 Q. 270 Bakery Location/each business 230 1.53 1,000 600 1.68 2.579 8,741.49 R. 281 Theater Per screen at each location 377 2.51 150 150 0.79 1.974 6,691.75 S. 282 Bowling Center Location/each business 1,146 7.64 150 150 0.79 6.002 20,341.50 T. 290 Mortuary Location/each business 310 2.07 800 800 1.71 3.544 12,009.87 U. 291 School (Minimum) Each business 117 0.78 150 150 0.79 0.613 2,076.75 292 School (0‐6) School population 2 0.01 130 100 0.73 0.010 33.13 293 School (7‐College) School population 4 0.03 130 100 0.73 0.020 66.26 294 Boarding School School population 40 0.27 233 165 0.85 0.227 768.30 V. 331 Service Station/Repair Location/each business 112 0.75 180 280 0.91 0.678 2,297.94 332 Service Station/Repair (11‐20) Location/each business 112 0.75 180 280 0.91 0.678 2,297.94 W. 353 Dry Cleaners Location/each business 386 2.57 150 150 0.79 2.022 6,851.50 X. 354 Laundromats Each washing machine 102 0.68 150 110 0.75 0.513 1,737.12 Mobile washers 34 0.23 20 150 0.70 0.159 540.25
SPECIAL USERS (Billed Individually)
Separate Billed Industrial/Commercial
Flow ($ per gpd) 1,935.73
BOD ($ per lb / year) 643.94
SS ($ per lb / year) 809.46
1 Flow Factor = Wastewater Flow in gallons per day (gpd) / 150 2 Strength Factor = 0.5712 + [0.1900 x BOD strength / 300] + [0.2388 x SS strength / 300] With BOD and SS strengths in milligrams per liter (mg/l) Proposed Capacity Charges
Wastewater Flow Wastewater Strength
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MRWPCA Comprehensive Rate & Fee Study

Fee Description Current Fees Updated Fees
Interruptible Rates
Agricultural Wash Water $203.83 / Acre foot $242.40  / Acre Foot Blanco Drain $76.34 / Acre foot $94.22  / Acre Foot
Reclamation Ditch $94.02 / Acre foot $96.58  / Acre Foot Salinas Storm Water $70.78 / Acre foot $91.26  / Acre Foot Lake El Estero $70.57 / Acre foot $90.88  / Acre Foot
Pond Water (Ag Wash & Stormwater) n/a $95.88  / Acre Foot Tembladero Slough n/a $112.63  / Acre Foot
Fee for Outside Services Cost of service Cost of service Salinas Pond
(User fees are assessed by the City of Salinas)
Cost of service Cost of service
Return Item Fee $10 / $15 $27.40
+ bank return item fee (currently $17)
Lien Filing Fee 30 $30 per lien
Service Charge Billing Fee: Member Agencies $0.20 per account $0.44 per bill Service Charge Billing Ree: Monterey County $0.93 per account $1.23 per bill Lift Station Maintenance Cost of service Cost of service Industrial Discharge Permit Non‐Compliance Fee Cost of service Cost of service Liquid Waste Discharge Fees
Liquid Waste (Septage) $0.04 / gallon $0.085 / gallon
Grease $0.11 / gallon $0.11 / gallon
Biocell $0.11 / gallon $0.07 / gallon
Special $0.11 / gallon $0.05 / gallon
Annual Source Control Permit & Inspection Fees Current Classes & Permit Fees ORIU Class A:  $25 $1,865
SIU Class C:  $600 $4,125
CIU $4,125
Annual Liquid Waste Hauler Permit Fee $100 $200
Liquid Waste Deposit $1,000 $1,000 minimum
With discretion to set a higher deposit, such as
for larger customers or accts with delinquencies
Brine (1)
Brine w/Chemicals $0.05 / gallon
All Other Brine Varies from $0.025 to $0.11 $0.035 / gallon Additional fees to the standard fees listed above may apply on a cost of service basis when additional services are provided, such as for dealing with issues, violations, and non‐compliance.
1 Some brine costs are based on an Agreement between MRWPCA and other entities.

Note: Cost of service includes billable wages and benefits, ov erhead, materials, vehicle usage, mileage, lab fees, on‐call costs, and other costs directly or indirectly incurred for providing the service for which a fee is charged.

Standard fees and charges are shown above. Different fees or c harges may be levied on case‐by‐case basis to better reflect the actual cost for providing a service, as determined by MRWPCA.

Updated Additional Fees & Charges
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MRWPCA Comprehensive Rate & Fee Study
2 WASTEWATER FINANCIAL PLAN & RATE STUDY

2.1 Historical Rates
MRWPCA has provided good financial stewardship by gradually raising sewer rates in 9 of the past 10 years to keep rates in line with escalating costs of providing service and maintain financial stability.

The following chart shows a long‐term history of monthly residential wastewater treatment charges.

MRWPCA did not adjust rates for over 10 years from 1992/93 to 2 003/04 and subsequently began adopting small, gradual rate increases most years including each of the past 7 years. Since 1992, rates have risen at an average rate of approximately 2.2%. Since 200 3/04, rates have risen by an average of approximately 4.2% per year.

Figure 1 – Historical Monthly Residential Charges

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MRWPCA Comprehensive Rate & Fee Study
The following chart compares MRWPCA’s historical residential ra tes to two measures of inflation including a) the Consumer Price Index (CPI), US City Average fo r Urban Consumers, and b) the Engineering News‐Record Construction Cost Index (20‐Cities Average), a widely‐used measure of construction cost inflation. Cost inflation for utility agenci es tends to be higher than CPI as utility agencies expenses are labor and capital intensive.

Figure 2 – Historical Monthly Residential Charges vs. Inflation

BARTLE WELLS ASSOCIATES 9
MRWPCA Comprehensive Rate & Fee Study
The table on the following page shows a breakdown of accounts b y customer class along with rates from the past 3 years. MRWPCA levies fixed monthly charges that vary by customer type. Residential customers are billed per dwelling unit. Charges for commercial and institutional customers vary by type of business, and major industrial customers are billed on an individual basis based on wastewater flow and strength.

MRWPCA bills most customers on a monthly basis for wastewater treatment services via a combined bill that also includes the local wastewater collection system charges levied by its member agencies.

Revenues collected on behalf of member agencies are maintained in a separate account and passed through to each member agency.

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MRWPCA Comprehensive Rate & Fee Study
Table 1 – Accounts & Monthly Rates
Accounts Billing
Customer Class (Est) Units 2014/15 2015/16 2016/17

RESIDENTIAL
102/105
107/109 Residential 51,778 86,971 Each living unit $14.85 $15.35 $15.85 SUBTOTAL 51,778 86,971

COMMERCIAL/INSTITUTIONAL
A. 001 Business/Government 6,100 8,348 Location/each business 10.05 10.40 10.75 D. 221 Hotel/Motel 156 6,402 Each room 6.30 6.50 6.70
E. 222 Bed & Breakfast Inn 13 201 Each room 4.15 4.30 4.45 F. 231 Supermarket 53 53 Location 100.00 104.00 107.00
G. 241 Medical Office 660 660 Each licensed physician 12.85 13.30 13.75 H. 242 Dental Office 231 231 Each licensed dentist 17.60 18.20 18.80 I. 243 Rest Home/Convalescent 46 1,852 Each bed of licensed capacity 3.90 4.05 4.20 J. 244 General Hospital 55 Each bed of licensed capacity 23.15 23.95 24.70 K. 245 Animal Hospital 20 20 Location/each business 26.70 27.65 28.55 L. 261 Restaurant–One Meal 37 2,237 Each restaurant seat 0.95 1.00 1.05 262 Restaurant–Two Meals 203 12,183 Each restaurant seat 1.45 1.50 1.55 263 Restaurant–Three Meals 48 3,366 Each restaurant seat 2.80 2.90 3.00 M. 264 Restaurant w/Bar 80 11,895 Each restaurant seat 2.80 2.90 3.00 N. 265 Bar 37 37 Location/each business 23.05 23.85 24.60 O. 266 Nightclub 22 Location/each business 68.40 70.80 73.05 P. 267 Takeout Food–Small 308 308 Location/each business 33.40 34.55 35.6 5 268 Takeout Food–Medium 62 62 Location/each business 81.65 84.50 87.20 269 Takeout Food–Large 30 30 Location/each business 149.00 154.00 159.00 Q. 270 Bakery 98 98 Location/each business 38.55 39.90 41.20 R. 281 Theater 11 56 Per screen at each location 31.70 32.80 33.85 S. 282 Bowling Center 22 Location/each business 97.00 100.00 103.00 T. 290 Mortuary 77 Location/each business 48.95 50.65 52.25 U. 291 School (Minimum) 121 121 Each business 10.05 10.40 10.75 292 School (0‐6) 72 30,446 School population 0.13 0.13 0.13 293 School (7‐College) 42 30,016 School population 0.26 0.27 0.28 294 Boarding School 71 , 3 8 7 School population 3.05 3.15 3.25 V. 331 Service Station/Repair 236 236 Location/each business 10.50 10.85 11.20 332 Service Station/Repair (11‐20) 44 Location/each business 10.50 10.85 11.20 W. 353 Dry Cleaners 18 18 Loca tion/each business 32.80 33.95 35.05 X. 354 Laundromats 17 1,888 Each washing machine 8.40 8.70 9.00 SUBTOTAL 8,726
SPECIAL USERS (Billed Individually)
Separate Billed Ind/Comm 120 120
Special Unit Rates
Flow ($ per mgd) 644,000 666,000 687,000
BOD ($ per BOD x mgd) 763 789 815
SS ($ per SS x mgd) 315 326 337
Cust Svc ($ per account) 2.66 2.75 2.84
SUBTOTAL 120 120
TOTAL ACCOUNTS 60,624
Historical Rates Effective
BARTLE WELLS ASSOCIATES 11
MRWPCA Comprehensive Rate & Fee Study

2.2 Sewer Rate Surveys
The following chart shows a survey of regional sewer rates. Ra tes for MRWPCA member agencies include two components as shown on the charge, including a) MRWPCA’s wastewater treatment charge plus b) each agency’s local charge for wastewater collection.

Figure 3 – Regional Sewer Rate Survey

The chart on the following page shows a survey of monthly residential sewer rates for a number of larger benchmark agencies in California. For agencies with mul tiple service area areas, the survey shows the mid‐point rate (half way between the lowest and highest rate) as a representation of each agency’s rates.

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MRWPCA Comprehensive Rate & Fee Study
Figure 4 – Benchmark Agency Sewer Rate Survey

MRWPCA member agency sewer rates are in the low to middle range compared to the other regional and benchmark agencies. Rates can vary widely from agency to agency due to a wide range of factors.

With the proposed rate increases, MRWPCA member agency rates ar e expected to remain in the lower to middle range in future years. Many of the other agencies on the surveys are also anticipating sewer rate increases in upcoming years.

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MRWPCA Comprehensive Rate & Fee Study

2.3 Constitutional Rate Requirements
The wastewater treatment rates developed in this study were designed to comply with provisions of Article 13D, Section 6 of the California Constitution, establis hed by Proposition 218. In accordance with these requirements, the pro posed rates are designed to a) not exceed the cost of providing service, b) recover revenues in proportion to the cost for serving each customer.

Proposition 218 was adopted by California voters in 1996 and ad ded Articles 13C and 13D to the California Constitution. Article 13D, Section 6 governs property‐related charges, which the California Supreme Court subsequently ruled includes ongoing utility system charges such as water, sewer, and garbage rates. Article 13D, Section 6 establishes a) procedural requirements for imposing or increasing property‐related charges, and b) substantive requirements for those charges. Article 13D also requires voter approval for new or increased property‐rela ted charges but exempts rates for water, sewer, and garbage service from this voting requirement i f t h e r a t e s c o m p l y w i t h t h e substantive and procedural requirements established by Proposition 218.

The substantive requirements of Article 13D, Section 6 require MRWPCA’s wastewater treatment rates to meet the following conditions:
1) Revenues derived from the fee or charge shall not exceed the fu nds required to provide the property related service.
2) Revenues derived from the fee or charge shall not be used for any purpose other than that for which the fee or charge was imposed.
3) The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to the parcel. 4) No fee or charge may be imposed for a service unless that servi ce is actually used by, or immediately available to, the owner of the property in question. 5) No fee or charge may be imposed for general governmental servic es, such as police or fire services, where the service is available to the public at large in substantially the same manner as it is to property owners.

2.4 Rate‐Setting Methodology
The rates developed in this report use a straightforward method ology to develop rates that reflect the cost of providing service and fairly apportion costs to each customer. The general methodology used in this study is summarized on the diagram on the following page.

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MRWPCA Comprehensive Rate & Fee Study

Revenue Requirements
Determine future funding
requirements from rates
Cost Allocation
Equitably apportion costs
to rate components
Rate Design
Develop rates that
recover revenues in
proportion to the cost
of providing service
Identify near‐term &
long‐term operating and
capital funding needs
Evaluate financing
alternatives for capital
improvements
Establish fund reserve
targets for financial
planning
Develop financial
projections and evaluate
financial & rate scenarios
Identify number of
accounts/billing units;
estimate wastewater
flow & strength by
customer class
Allocate costs for
recovery from
wastewater flow and
strength (BOD & SS)
Develop underlying unit
costs for wastewater
flow and strength
Apply unit costs to the
wastewater flow and
strength characteristics
of each customer class
Review existing rate
structure
Evaluate rate structure
alternatives or
modifications
Develop rates that
recover costs
apportioned to each
customer class
Phase in rate increases
over time, to the extent
possible, to help
minimize annual impacts
Cost of Service Rate‐Setting Methodology
BARTLE WELLS ASSOCIATES 15
MRWPCA Comprehensive Rate & Fee Study

2.5 Sewer Financial Overview & Financial Challenges
Bartle Wells Associates conducted an independent evaluation of MRWPCA finances. Key observations include:
 MRWPCA’s wastewater utility is a self‐supporting enterprise funded primarily from wastewater service charges and other fees for service. The Agency does not receive property taxes. As such, rates and fees need to be set at levels adequate to support the costs of providing service.  MRWPCA has provided good financial stewardship by adopting small annual sewer rate increases in 9 of the past 10 years to keep rates aligned with escalating costs of service.  MRWPCA’s fund reserves are on the low side based on standard financial metrics and compared to other benchmark agencies. However, the wastewater enterprise anticipates receiving reimbursement from an anticipated Clean Water State Revolving F und Loan for prior expenses incurred for Pure Water Monterey. This reimbursement is roughl y estimated at $4 million for financial planning purposes and is expected to restore available fund reserves/working capital to a prudent minimal level.
 MRWPCA capital improvement expenditures have averaged about $4. 3 million over the 5 prior fiscal years (2011/12 – 2015/16) including about $3.8 million per year of infrastructure improvements and $500,000 of annual funding for capital equipme nt. Current rates generate roughly $4.0 million per year for capital needs. However, MRWPCA’s facilities are aging and will require substantial increased investment for repair, maintenance, rehabilitation and replacement in upcoming years as described below.
 MRWPCA has a relatively low level of outstanding wastewater deb t and does not anticipate issuing additional debt for wastewater system capital improvements in the foreseeable future.

2.6 Financial Challenges / Key Drivers of Rate Increases Going forward, MRWPCA is facing a number of financial challenges that will require rate increases in upcoming years. Key drivers of rate increases include:

2.6.1 Capital Improvements / Aging Infrastructure
MRWPCA’s wastewater system faces a substantial amount of capita l improvements needed to address current deficiencies and rehabilitate and replace aging infrastructure. The wastewater treatment plant is now 27 years old and MRWPCA’s pump stations are substantially older. A 10‐year capital improvement program developed by MRWPCA’s Engineering D epartment identifies over $92 million of infrastructure funding needs with future improvements averaging approximately $10 million per year. Additional capital funding needs may be identified by a comprehensive BARTLE WELLS ASSOCIATES 16
MRWPCA Comprehensive Rate & Fee Study
evaluation of MRWPCA’s conveyance system that is currently unde rway, and a subsequent planned evaluation of the wastewater treatment plant.

MRWPCA plans to fund its wastewater system capital improvement needs on a pay‐as‐you‐go basis, without reliance on debt financing. The proposed rate increases over the next 3 years will gradually phase‐in increases in annual funding for capital improvements from the current level of approximately $4 million, generated by current rates, to almost $8 million per year when the rate increases are fully phased‐in. The proposed rate increases ove r the next 3 years are gradual and significant steps in the right direction, however, the financial projections indicated additional rate increases will be needed in future years to continue the phase‐in of capital funding to required levels.

2.6.2 Increased Operating Costs
MRWPCA also faces annual increases in operating costs due to in flation – including rising costs for utilities, staffing, insurance, supplies, etc. – and other fact ors. Cost inflation for wastewater utility agencies has historically been h igher than the Consumer Price I ndex (CPI). MRWPCA may face additional funding needs in future years for maintenance of the wastewater treatment plant, which is now 27 years old, and conveyance system, which is even older.

MRWPCA is also facing increases in annual funding requirements for the California Public Employee Retirement System (PERS). Based on information provided by PERS, annual payments are projected to roughly triple over the next 6 years from approximately $800,000 per year in 2016/17 to over $2.3 million by 2022/23, largely due to a reduction in the projected earnings rate of future investments.

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MRWPCA Comprehensive Rate & Fee Study

2.7 10‐Year Cash Flow Projections
BWA developed 10‐year cash flow projections to identify annual revenue requirements, evaluate financial scenarios, and determine future rate increases.  The table on the next page shows 10‐year wastewater cash flow projections. The projections incorporate the latest information available as well as a number of reasonable and slightly conservative assumptions.  Key assumptions include:
 Operating and maintenance costs are based on the 2016/17 budget and generally escalate at the annual rate of 4.0% to account for future cost inflation.  Growth from new development and/or redevelopment is projected at the equivalent of 150 new single family homes per year for financial planning purposes.  Capital improvement funding phases in corresponding with projected rate increases to levels that support MRWPCA’s future annual CIP funding needs.  The projections assume capital projects are funded on a pay‐as‐you‐go basis with no debt financing.  The projections include costs for new approved staff positions for public relations and administrative assistant.
 The projections account for future anticipated changes in operating costs and revenue reimbursements related to Pure Water Monterey.
 Other revenues and expenses are projected as shown on the table.  The projections include a minimum fund reserve target for financial planning purposes set at 25% (3 months) of operating and maintenance expenses, plus $2 million for emergency CIP funding.  The total minimum fund reserve target escalated over time from roughly $6 .7 million in the current fiscal year 2016/17 to $8.2 million in 5 years.

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Table 2 ‐ 10‐Year Cash Flow Projections

Esc % 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 20 24/25 2025/26 2026/27 Rate Adjustment % 3.26% 10.0% 10.0% 10.0% 8.0% 8.0% 8.0% 2.0% 2.0% 2.0% 2.0% Projected Monthly Residential Charge $15.85 $17.42 $19.15 $21.06 $22.74 $24.56 $26.52 $27.05 $27.59 $28.14 $28.70 Rate Adjustment $ (to Residential Charge) $0.50 $1.57 $1.73 $1.91 $1.68 $1.82 $1.96 $0.53 $0.54 $0.55 $0.56 Residential Billing Equivalents 111,761 111,961 112,111 112,261 112,411 112,561 112,711 112,861 113,011 113,111 113,211 Growth (Residential Equivalents) 200 150 150 150 150 150 150 150 100 100 100 Interest Earnings Rate 0.7% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% Capacity Charge per Residential Equivalent +2% $3,506 $3,389 $3,457 $3,526 $3,597 $3,669 $3,742 $3,817 $3,893 $3,971 $4, 050 Beginning Unrestricted Fund Reserves $3,690,000 $6,845,000 $6,833,000 $6,784,000 $6,797,000 $6,897,000 $7,219,000 $7,595,000 $7,965,000 $8,197,000 $8,421,000

REVENUES
Wastewater Treatment Charges ‐ 21,257,000 23,447,000 25,821,000 28,444,000 30,763,000 33,264,000 35,974,000 36,740,000 37,514,000 38,294,000 39,089,000 Military Wastewater Charges ‐ 374,000 374,000 374,000 374,000 374,000 374,000 374,000 374,000 374,000 374,000 374,000 Liquid Waste & Grease Haulers 2% 630,000 643,000 656,000 669,000 682,000 696,000 710,000 724,000 738,000 753,000 768,000 Brine 0% 183,000 183,000 183,000 183,000 183,000 183,000 183,000 183,000 183,000 183,000 183,000 Interruptible Rates
(rate may change) 0% 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 User Penalties/Lien Penals & Trans 0% 425,000 425,000 425,000 425,00 0 425,000 425,000 425,000 425,000 425,000 425,000 425,000 NSD Agency Billing Fees 0% 86,000 86,000 86,000 86,000 86,000 86,000 86,000 86,000 86,000 86,000 86,000 Fee for Services ‐ Outside Entities 2% 189,000 193,000 197,000 201,000 205,000 209,000 213,000 217,000 221,000 225,000 230,000 Lift Station Maintenance 2% 150,000 153,000 156,000 159,000 162,000 165,000 168,000 171,000 174,000 177,000 181,000 WRA Reclamation Indirect Charges 4% 426,000 443,000 461,000 479,000 498,000 518,000 539,000 561,000 583,000 606,000 630,000 Pure Water Monterey Indirect Charges 4% 0 0 300,000 312,000 324,000 337,000 350,000 364,000 379,000 394,000 410,000 Interest Earnings ‐ 30,000 68,000 68,000 68,000 68,000 69,000 72,000 76 ,000 80,000 82,000 84,000 Capacity Charges ‐ 700,000 508,000 519,000 529,000 540,000 550,000 561,000 573,000 389,000 397,000 405,000 Miscellaneous Income 0% 181,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000__________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total Revenues 24,996,000 27,038,000 29,761,000 32,444,000 34,825,000 37,391,000 40,170,000 41,009,000 41,661,000 42,511,000 43,380,000 SRF Reimbursement to WW 4,000,000

EXPENSES
Operating & Maintenance
Salaries & Benefits 4% 11,158,000 11,604,000 12,068,000 12,551,000 13,053,000 13,575,000 14,118,000 14,683,000 15,270,000 15,881,000 16,516,000 CalPERS Payments ‐ 790,000 947,000 1,219,000 1,516,000 1,809,000 2,109,000 2,369,000 2,464,000 2,563,000 2,666,000 2,773,000 Less Sals/Bens Charged to WRA & CIP 4% (1,361,000) (1,415,000) (1,4 72,000) (1,351,000) (1,405,000) (1,461,000) (1,519,000) (1,580,000) (1,643,000) (1,709,000) (1,777,000) New Positions: Adm Asst/Public Outreach 4% 0 208,000 216,000 225,000 234,000 243,000 253,000 263,000 274,000 285, 000 296,000 New Positions: Back from GWR 4% 0 0 0 300,000 312,000 324,000 337,000 350,000 364,000 379,000 394,000 Professional/Contract Svcs/Op Supplie 4% 1,778,000 1,849,000 1,923,000 2,000,000 2,080,000 2,163,000 2,250,000 2,340,000 2,434,000 2,531,000 2,632,000 Chemicals 4% 1,454,000 1,512,000 1,572,000 1,635,000 1,700,000 1,768,000 1,839,000 1,913,000 1,990,000 2,070,000 2,153,000 Utilities 4% 2,274,000 2,365,000 2,460,000 2,558,000 2,660,000 2,766,0 00 2,877,000 2,992,000 3,112,000 3,236,000 3,365,000 Maintenance & Repairs 4% 1,213,000 1,262,000 1,312,000 1,364,000 1,419,000 1,476,000 1,535,000 1,596,000 1,660,000 1,726,000 1,795,000 Office Expense/Info Systems/Other 4% 1,092,000 1,136,000 1,181,000 1,228,000 1,277,000 1,328,000 1,381,000 1,436,000 1,493,000 1,553,000 1,615,000 Major O&M 4% 460,000 500,000 520,000 541,000 563,000 586,000 609,000 633,000 658,000 684,000 711,000__________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Subtotal 18,858,000 19,968,000 20,999,000 22,567,000 23,702,000 24,877,000 26,049,000 27,090,000 28,175,000 29,302,000 30,473,000 Debt Service
2006 Wastewater Rev Bonds 127,000 1,024,000 0 0 0000000 2012 Wastewater Rev Refi Bonds 811,000 843,000 871,000 905,000 941,000 974,000 1,009,000 1,047,000 1,086,000 1,125,000 0 2013 Pension Obligation Bonds 1,313,000 315,000 1,225,000 1,129,000 1,136,000 1,156,000 1,157,000 1,106,000 1,054,000 1,028,000 0__________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Subtotal 2,251,000 2,182,000 2,096,000 2,034,000 2,077,000 2,130,000 2,166,000 2,153,000 2,140,000 2,153,000 0 Capital Improvements
Capital Improvement Projects 3% 2,710,000 4,400,000 6,200,000 7,300,000 8,400,000 9,500,000 11,000,000 10,800,000 10,500,000 10,200,000 11,500,000 CIP Carry‐Forward & GWR Contribution 1 ,522,0000000000000 Capitalized Equipment 3% 500,000 500,000 515,000 530,000 546,000 562,000 579,000 596,000 614,000 632,000 651,000__________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Subtotal 4,732,000 4,900,000 6,715,000 7,830,000 8,946,000 10,062,000 11,579,000 11,396,000 11,114,000 10,832,000 12,151,000 Total Expenses 25,841,000 27,050,000 29,810,000 32,431,000 34,725,000 37,069,000 39,794,000 40,639,000 41,429,000 42,287,000 42,624,000 Revenues Less Expenses 3,155,000 (12,000) (49,000) 13,000 100,000 322,000 376,000 370,000 232,000 224,000 756,000 Ending Fund Reserves/Working Capital 6,845,000 6,833,000 6,784,000 6,797,000 6,897,000 7,219,000 7,595,000 7,965,000 8,197,000 8,421,000 9,177,000 Fund Rsrv Target
(25% O&M +$2M CIP) 6,710,000 6,990,000 7,250,000 7,640,000 7,930,000 8,220,000 8,510,000 8,770,000 9,040,000 9,330,000 9,620,000 Debt Service Coverage: Wastewater Only 2.73 3.24 4.18 4.86 5.36 5.88 6.52 6.46 6.30 6.14 ‐ Debt Service Coverage: All Debt 1.95 2.19 2.13 2.34 2.54 2.75 3.00 3.00 2.96 2.93 4.37 MRWPCA Wastewater Cash Flow Projections
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The chart below graphically shows a 10‐year breakdown of projected expenses and revenues.

Figure 5 –Projected Revenues & Expenses

2.8 Debt Service Coverage Projections
The table on the next page shows 10‐year debt service coverage projections for debt secured by the wastewater agency, the Water Reclamation Authority, and Pure Water Monterey. As required by the State Revolving Fund (SRF) Financing Program, MRWPCA’s SRF loan f o r f i n a n c i n g P u r e W a t e r Monterey facilities is secured by net revenues from Pure Water Monterey and MRWPCA’s wastewater system.

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Table 3 ‐ 10‐Year Debt Service Coverage Projections

Esc % 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27

2.9 Rate Revenue Increases
The cash flow projections indicate the need for rate increases over the next 3 years and beyond in order to fund MRWPCA’s future revenue requirements and maintain financial stability. The proposed increases are designed to increase revenues from rates by 10% e ach year for the next 3 years as shown on the table below. However, while the overall level of increase is projected at 10% each year, the impacts to the rates for each customer class may vary as th e proposed rates also account for adjustments due to updated cost allocations and a realignment of rates with the cost of service.

Table 4 – Projected Rate Revenue Increases

In future years, MRWPCA can re‐evaluate its finances and revenue requirements and adjust rates as needed based on future updated projections. While MRWPCA always has the flexibility to implement rate adjustments that are lower than adopted pursuant to the Proposition 218 process, future rates cannot exceed adopted increases without going through the Proposition 218 process again. As such, rates adopted pursuant to Proposition 218 are essentially future rate caps.

2.10 Sewer Rate Increase Alternatives
As part of the rate study process, BWA worked with MRWPCA to evaluate a number of financial and rate scenarios, including scenarios with both lower and higher levels of rate increases. Lower levels of rate increases would have generated inadequate funding or re quired debt financing to help fund capital improvement needs, and would have resulted in the need for higher rate increases after the next 3 years. Higher levels of rate increases would have phased‐in additional capital funding quicker, and would have resulted in the need for lower future rate incre ases. Ultimately, MRWPCA is proposing to move forward with a balanced approach that attempt s to minimize the near‐term and long‐term impact on ratepayers while prudently phasing in higher levels funding for capital improvement needs.

2.11 Cost Recovery Allocations
BWA worked closely with MRWPCA staff to develop rates that equi tably apportion costs to each of the Agency’s customer classes.  Costs were allocated to wastewater flow, BOD and SS for purposes of developing underlying rates for each of these parameters that are subsequently applied to the wastewater flow and strength characteristics of each customer class to determine a rate that reflects the costs of providing service to each customer class.   For development of rates, costs were allocated for fiscal year 2019/20, the third and final year of the proposed rate increases. 2017/18 2018/19 2019/20
Projected Rate Increases 10% 10% 10%
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 Future anticipated increases in CalPERS contribution requirements are allocated to each department based on each department’s share of budgeted CalPERS funding requirements.  Operating and maintenance expenses and capital improvement prog ram costs are allocated for recovery from wastewater flow, BOD and SS based on input from MRWPCA’s Engineering Department.  These allocations reflect engineering estimates of the share of costs related to wastewater flow and strength for each expense item.  For example, costs for MRWPCA’s conveyance system are predominant ly allocated to wastewater flo w, while costs for the wastewater treatment plant are allocated to mix of flow, BOD an d SS based on a reasonable estimate of the share of costs associated with each parameter.  For purposes of rate recovery, net costs are allocated for recovery as follows:

Table 5 – Cost Allocations

2.12 Unit Cost Derivation
Unit costs for wastewater flow, BOD and SS were developed based on a) the total amount of costs allocated to each parameter, divided by b) the estimated billab le volume of wastewater flow or pounds of BOD and SS generated by MRWPCA’s customer base. These unit costs are then applied to the wastewater flow and strength characteristics of each customer class.  Wastewater flow per residential dwelling unit has declined over the past decade, including a significant decrease in recent years as customers have cut back w a t e r u s e , a n d correspondingly sewer discharge, in response to California’s re cent drought. As flows have decreased, wastewater strength c oncentrations have increased. Residential wastewater discharge is estimated as follows:

Table 6 – Projected Rate Revenue Increases

 Flows from commercial and institutional customers were estimated at 80% of historical flow factors to account for reductions in water use and wastewater discharge over the past 5‐10 years as customers have reduced water and sewer use due to cons ervation and improved efficiency.

Cust Svc/Accts Flow BOD SS

3.27% 57.84% 22.49% 16.40%
Flow (gpd) BOD (mg/l) SS (mg/l)
Prior Estimates 189 265 265
Updated Estimates 150 300 300
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 Wastewater flow and strength loading from major industrial customers was estimated based on metered flow from calendar year 2016 and estimated wastewate r strength for each customer based on industry type or actual wastewater sampling data.

The following table shows the derivation of underlying unit rat es for fiscal year 2019/20, which are subsequently applied to the wastewater flow and strength characteristics of each customer class to derive rates that reflect the cost of providing service to each type of customer. These unit rates are designed to support the revenue requirements for 2019/20 as det ermined based on the financial projections. Unit rates are calc ulated by dividing the costs a llocated to wastewater flow, BOD, SS, and customer service by the volume of annual billable flow, BOD and SS.

Table 7 – Unit Rates for Wastewater Flow & Strength

2.13 Proposed Wastewater Treatment Rates
The table on the next page shows estimated wastewater flows and loadings for each customer class along with proposed rates for the next 3 fiscal years. To help minimize the annual impact on ratepayers and facilitate a gradual transition, rates are phased in over 3 years from current levels to rates derived for 2019/20.

Cust Svc/Accts Flow BOD SS Total
2019/20 Rate Recovery $930,241 $16,452,983 $6,397,224 $4,663,553 $28,444,000

3.27% 57.84% 22.49% 16.40% 100.00%
Billing Units for Cost Recovery
Residential 13,045,650 13,045,650 11,913,679 11,913,679 Commercial 2,771,609 2,771,609 2,796,949 1,845,673
Special Users 1,004,928 1,004,928 996,986 1,130,695
Growth (Res Equivs) 67,500 67,500 56,506 56,506__________ __________ __________ __________ Total 16,889,687 16,889,687 15,764,121 14,946,554
gpd gpd lbs lbs
Cost per Unit $0.0551 $0.9741 $0.4058 $0.3120
per gpd per gpd per lb per lb
Cost per Unit for Special User Formula
Included> $1,029,221 $1,235 $950
per mgd per BOD x mgd per SS x mgd
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Table 8 – Proposed Wastewater Treatment Rates

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2.14 Rate Impacts
With MRWPCA’s proposed wastewater treatment rate increases, the total sewer service charges of MRWPCA member agencies are projected to remain in the lower to middle range compared to other regional agencies.

The following chart shows historical and projected monthly residential wastewater treatment rates.

From a long‐term pers pective, res idential rat es with the full 3 ‐year phase‐in of proposed rate increases will equal the 1992 rate adjusted at the annual rate of 3.1%.

Figure 6 – Historical & Projected Sewer Charges

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The dollar impact of the proposed rate increases on residential customers is summarized below. With full implementation of proposed rate increases over the next 3 years, residential rates will increase by a total of $5.20 per month.

Table 9 – Residential Rate Impact

MRWPCA’s proposed rate increases only apply to a portion of the total combined sewer service charge for each member agency. Currently, MRWPCA’s charges acc ount for anywhere from about 35% of total sewer charges (for Pacific Grove and Fort Ord) to as high as 75% of the total charge in Salinas (which has the lowest regional rates for wastewater collection based on the survey).

Current 2017/18 2018/19 2019/20
Monthly Residential Rate $15.85 $17.40 $19.15 $21.05
Increase 1.55 1.75 1.90
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3 CAPACITY CHARGE UPDATE

3.1 Capacity Charges
MRWPCA levies capacity charges on new or expanded connections to MRWPCA’s wastewater system.

Capacity charges are levied as a condition of development or ch ange in use, and are designed to recover the cost of capacity in infrastructure and assets benef itting new development. MRWPCA’s capacity charges have not been independently reviewed or updated in many years. Since the early 2000s, MRWPCA has adjusted its capacity charges most years by the change in the Engineering News‐ Record (ENR) Construction Cost Index, a widely‐used measure of construction cost inflation.

The following chart shows a history of MRWPCA’s capacity charge s per Equivalent Dwelling Unit (EDU). One EDU represents the wastewater demand of a typical residential dwelling unit. MRWPCA’s current capacity charge of $3,505 per EDU is equivalent to the charge per EDU levied in 1992 adjusted by roughly 2.8% per year for the past 25 years. This level of escalation falls between CPI and the ENR Construction Cost Index.

Figure 7 – Historical Capacity Charges per EDU

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3.2 Capacity Charge Surveys
The following chart shows a survey of regional sewer capacity c harges. Charges for agencies served by MRWPCA include both MRWPCA’s capacity charge for wastewater treatment facilities as well as each member agency’s capacity charge for local wastewater collection facilities.

Figure 8 – Regional Sewer Capacity Charge Survey

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The following chart shows a survey of residential sewer capacit y charges of a number of MRWPCA benchmark agencies. A midpoint or average charge is shown for agencies with multiple service areas to provide an overall estimate of the charge for a typical new home.

Figure 9 –Sewer Capacity Charge Survey of Benchmark Agencies

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3.3 Government Code
Development impact fees are governed by California Government C ode Section 66000 et. seq This section of the Code was initially established by Assembly Bill 1600 (AB 1600) and is commonly referred to as the Mitigation Fee Act. Pursuant to the Code, a development impact fee is not a tax or special assessment, but is instead voluntary charge levied to defray the cost of public facilities needed to serve a new development.

Section 66013 of the Code specifically governs water and wastewater capacity charges. This section of the Code defines a “capacity charge” to mean “a charge for public facilities in existence at the time a charge is imposed or charges for new public facilities to be acquired or constructed in the future that are of proportional benefit to the person or property being charged.” The Code distinguishes “capacity charges” from “connect ion fees” which are defined as fees for the physical facilities necessary to make a water or sewer connection, such as costs re lated to installation of meters and pipelines from a new building to a water or sewer main.

According to the Section 66013, a water or wastewater capacity charge “shall not exceed the estimated reasonable cost of providing the service for which th e fee or charge is imposed” unless approved by a two‐thirds vote. Section 66013 does not detail any specific methodology for calculating capacity charges.

Section 66016 of the Code identi fies the procedural requirements for adopting or increasing water and wastewater capacity charges and Section 66022 summarizes th e general process by which the charges can be legally challenged

3.4 Fee Methodology: Average Cost Approach
Based on evaluation of alternatives, BWA recommends use of an average cost approach to calculate updated capacity charges. Under this approach, new connections buy in for a proportionate share of capacity needs in existing and planned wastewater conveyance an d treatment facilities and assets.

The charges are calculated based on the total cost of facilitie s including planned upgrades and expansions, divided by the total service capacity of MRWPCA’s facilities with completion of the improvements. The average cost approach is a widely used and a ccepted approach for calculating capacity charges, particularly for service areas that are large ly built out but require some additional infrastructure improvements to meet the demands of anticipated growth or redevelopment.

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The general methodology used to calculate updated water and sewer capacity charges is summarized below.

There are a number of widely‐used methods for valuing infrastructure and assets for cost recovery.

The capacity charges calculated in this report are designed to recover the estimated replacement cost of existing MRWPCA facilities as estimated based on acquisition cost escalated into current dollars (as of January 2017) based on the change in the ENR Construction Cost Index.

3.5 Cost Recovery Allocation
BWA worked with staff from MRWPCA’s Engineering Department to allocate costs for recovery from capacity charge components for wastewater flow and strength, as measured by BOD and SS.  Costs of existing wastewater system facilities were first broke n down into various functional components. Subsequently, costs for each component were allocated for recovery from flow, BOD and SS based on input from MRWPCA staff.

Capacity Charge Methodology
Step 1 ‐ Determine Cost of Facilities & Assets for Fee Recovery Determine the recoverable cost of facilities and assets benefiting new development to be recovered by the capacity charge.

Step 2 ‐ Identify Capacity of Facilities
Identify the corresponding capacity of facilities and assets identified in Step 1; capacity may be limited by the amount of development facilities can serve without substantial additional expansion or improvements.

Step 3 ‐ Calculate Cost per Unit of Capacity
Calculate the cost per unit of capacity by dividing the costs identified for fee recovery in Step 1 by the capacity of those facilities identified in Step 2.

Step 4 ‐ Apply Cost per Unit to the Capacity Needs of Customer Classes Apply the unit cost for capacity to the infrastructure capacity needs for each customer class to determine an equitable capacity charge per new connection.

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 Capital improvement program costs were first allocated to a) re hab & replacement, and b) upgrade & expansion. Costs allocated to upgrade and expansi on were subsequently allocated for cost recovery from flow, BOD and SS based on input from MRWPCA staff. Costs allocated to rehab & replacement were excluded from fee recover y to ensure the updated capacity charge does not double‐count by including both an asset as well as its replacement.  Costs included for fee recovery are adjusted to a) include prior interest payments and issuance costs incurred for debt used to finance MRWPCA facilities, and b) exclude outstanding debt principal. This ensures that the updated charge recovers financing costs incurred for funding facilities but excludes unpaid principal, which represents cost s of existing facilities that have not yet been funded.
 The updated fee calculation also includes a buy‐in for unrestricted operating fund reserves to ensure new connection buy‐in on parity with existing customers.

As shown on the following table, $470 million of costs are iden tified for recovery from the updated capacity charges.

Table 10 – Costs Allocation of Facilities & Assets

Flow BOD SS
Existing Wastewater System Assets (Jan‐2017 Cost)
Acquisition Cost Adjusted by ENR Construction Cost Index $444,074,555 49.3% 23.2% 27.5% 100.0% Allocation $218,839,512 $102,909,796 $122,325,247 $444,074,555 10‐Year Capital Improvement Projects (Current $)
Upgrades/Expansions 15,760,000
Rehab/Replacement Excluded
Subtotal 15,760,000 53.4% 18.1% 28.5% 100.0%
Allocation 8,420,000 2,853,250 4,486,750 15,760,000
Additional Capital Improvements Needed to Serve Growth Excluded Debt Adjustment (Excludes Pension Obligation Bonds)
Plus Prior Interest Pymts & Issuance Costs Through 06/30/17 18,897,937 Less Outstanding Principal as of 06/30/17 (12,439,840)
Net Debt Adjustment 6,458,097 49.3% 23.2% 27.5% 100.0%
Allocation 3,182,544 1,496,599 1,778,954 6,458,097
Unrestricted Operating Fund Reserves 06/30/16 3,690,569 50.0% 25.0% 25.0% 100.0% Allocation 1,845,285 922,642 922,642 3,690,569
Total 469,983,221 232,287,340 108,182,287 129,513,594 469,983,221 % of Total 49.4% 23.0% 27.6% 100.0%
Cost Allocation
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3.6 Unit Rate Derivation & Capacity Charge per EDU
The costs allocated to flow, BOD and SS in the prior table, are subsequently divided by the total capacity of each fee component resulting in unit cost for flow, BOD and SS.

Table 11 – Capacity Charge Components

Flow BOD SS
Cost Recovery
Existing Wastewater System Assets $218,839,512 $102,909,796 $122,3 25,247 10‐Year Capital Improvement Projects (Current $) 8,420,000 2,853,250 4,486,750 Debt Adjustment (Excludes Pension Obligation Bonds) 3,182,544 1,496,599 1,778,954 Unrestricted Operating Fund Reserves 06/30/16 1,845,285 922,642 92 2,642____________ ____________ __________ Total 232,287,340 108,182,287 129,513,594
Projected Service Capacity of Customer Base 18.0                               420                           400 mgd mg/l mg/l
Wastewater Loadings 18,000,000                  23,013,396             21,917,520 gpd lbs / year lbs / year
Unit Charges $12.90 $4.70 $5.91
per gpd per lb / year per lb / year
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These unit costs are applied to the wastewater system capacity requirement of an EDU resulting in an updated capacity charge of a pproximately $3,389 per EDU.  Th is charge is slightly lower than MRWPCA’s current charge of about $3,505 per EDU.

Table 12 – Capacity Charge per EDU

The table on the following page shows updated capacity charges for all customer classes. Capacity charges for major new industrial connections are calculated on a case‐by‐case basis according to the estimated wastewater flow and strength of each connection.

Flow BOD SS TOTAL
Capacity Charge per Unit $12.9049 $4.70 $5.91
per gpd per lbs / year per lbs / year
CAPACITY CHARGE PER EDU
Residential Flow & Strength 150               300                       300 gpd mg/l mg/l
Residential Wastewater Loadings 150                137                       137 gpd lbs / year lbs / year
Capacity Charge per EDU $1,935.73 $643.94 $809.46 $3,389.13 % of Capacity Charge per EDU 57.12% 19.00% 23.88%
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Table 13 – Proposed Capacity Charges

EDUs Capacity
Customer Class Flow/Unit Flow BOD SS Strength Flow Factor x Charge gpd Factor1 mg/l mg/l Factor2 Strength Factor per Unit

RESIDENTIAL
102/105
107/109 Residential Each living unit 150 1.00 300 300 1.00 1.000 $3,389.13

3.7 Capacity Charge Ordinance: Purpose of Charge
Pursuant to Government Code, revenues derived from MRWPCA’s capacity charges can only be used for the purpose for which the charges are collected. In order to maximize flexibility for use of capacity charge revenues, BWA recommends that the ordinance or resolution adopting the updated charges broadly define the purpose of the capacity charge.

3.8 Capacity Charge Credits for Redevelopment
Capacity charges for redevelopment projects and/or expansions should be based on the incremental demand generated from each project. Under this approach, future redevelopment projects would get credited for the capacity purchased by the prior development.

3.9 Future Fee Adjustments & Updates
In future years, BWA recommends that MRWPCA continue to adjust its capacity charges annually by the change in the ENR Construction Cost Index to keep the charg es aligned with future construction cost inflation. The capacity charge ordinance or resolution sh ould allow for implementation of a m u l t i ‐ y e a r a d j u s t m e n t i f M R W P C A e v e r o p t s t o t e m p o r a r i l y d e f e r any annual adjustments.

Additionally, BWA recommends that capacity charges be independently reviewed and/or updated approximately once every three to five years.

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4 ADDITIONAL FEE & CHARGE UPDATE

4.1 Additional Fees & Charges
In addition to rates and capacity charges, MRWPCA levies a number of additional fees and charges to help recover the cost of providing various services. Some of t hese fees have not been updated in many years while others have been periodically adjusted, but ha ve not been recently reviewed or recalculated. Many of MRWPCA’s additional fees no longer reflect the cost of providing service.

BWA worked with MRWPCA to develop updated fees and charges designed to reflect the current cost of providing service for which each fee is levied. Updated fee recommendations were developed with substantial input from MRWPCA staff.

4.2 Legal Requirements
Fees and charges levied by state and local governmental agencie s must meet the requirements of Proposition 26, a Constitutional Amendment that was narrowly approved by California voters on the November 2010 ballot. Proposition 26 redefines fees and charges levied by local agencies as “taxes”, which are subject to voter approval. However, Proposition 26 included seven exceptions under which local fees are not considered taxes and are therefore not subje ct to voter approval. All of the fees imposed by the District meet one or more of these criteria to be exempted from voter approval as a tax. These exceptions include:
 A fee that is imposed for a special benefit or privilege provid ed to an individual, does not exceed the reasonable cost of service, and does not provide broad, general benefits to others in the community;
 A fee imposed for a specific government service or product prov ided directly to the person paying the fee, that does not exceed the reasonable cost of providing service;  A charge imposed for reasonable regulatory costs (i.e. licenses , audits, inspections, permits) that does not exceed the reasonable cost of service;
 Rental or lease fees charged for the use of or entrance to governmental property;  Fines or penalties imposed for violations of the law;  A charge imposed as a condition of property development (such c harges are governed by California Government Code Section 66000 et. seq. with Water and Sewer Capacity Charges governed specifically by Section 66013);
 Assessments and property‐related fees imposed under the provisions of Proposition 218, such as the District’s water and sewer service charges.

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4.3 Fee Update Methodology
Updated fees and charges were developed based on a detailed evaluation of the amount of staff time and materials required to provide each type of service.  Most o f the updated fees include cost recovery for:
 Staff Time & Billable Rates – MRWPCA staff identified the staff positions and amount of time required for providing each type of service. Billable rates per position includes a fully‐ burdened hourly rate that includes cost recovery for salary and benefits for each position.  In cases where MRWPCA employs multiple people for the same positio n, the average rate per position was used in the fee update.
 Overhead Allocation – MRWPCA provides a number of administrative and internal supp ort s e r v i c e s t h r o u g h v a r i o u s d e p a r t m e n t s ( e . g . A d m i n i s t r a t i o n , H u m an Resources, Finance, Information Technology, etc.)  BWA worked with MRWPCA staff to evaluate a number of alternative approaches for allocating these internal overhead co s t s .   T h e u p d a t e d f e e s calculated in this report incorporate a conservative overhead allocation of 16.9% based on the overhead departments share of total budgeted expenses. The allocation excludes cost recovery for expenses incurred on behalf of the Water Reclamation Authority or other entities.  Materials/Vehicles/Other Costs – A number of fees include recovery for external costs incurred for providing each type of service such as materials, vehicles, equipment, printing, postage, and/or fees charged by other entities.  The updated fe es include cost recovery for these expenses, without markup.
 Facility Cost Recovery – Some fees include a component for facility cost recovery.  F or example, fees for liquid waste haulers include cost recovery for the share of specific facilities required for receiving and processing septage, grease, brine and other types of hauled waste.

These customers were not required to pay capacity charges to bu y‐in to MRWPCA facilities.

When applicable, facility cost recovery is based on the current (ENR‐adjusted) cost for the share of each type of facility identified by MRWPCA staff as re quired for providing each service.

Some fees were updated based on an alternative approach including:
 Interruptible Rates – MRWPCA provides conveyance and treatment for various types o f source waters (e.g. Ag Wash). This service is mutually benefic ial to both MRWPCA and the source water dischargers. The dischargers benefit via a cost‐effective means for disposal and treatment, while MRWPCA benefits from access to additional wate r supply for Pure Water Monterey. These interruptible rates are calculated to recover the marginal (or incremental) BARTLE WELLS ASSOCIATES 39
MRWPCA Comprehensive Rate & Fee Study
cost of collection and treatment of various source waters, esse ntially a break‐even rate for MRWPCA.
 Cost of Service Fees ‐ For some fees, the cost of providing service can vary widely each time the service is provided (e.g. Lift Station Maintenance). These fees do not have a standard charge and are instead billed on a cost‐of‐service basis each time the service is provided. For these types of fees, MRWPCA tracks staff time and expenses incu rred to ensure the fee accurately recovers the cost of service to each customer.

4.4 Updated Fee Recommendations
The table on the following page shows a schedule of current and updates fees and charges. The proposed fees represent standard fees that would apply in most situations. In situations requiring additional staff time and costs, MRWPCA should reserve the right to collect additional fees to reflect the actual cost of service on a time and materials basis.

4.5 Future Fee Adjustments & Updates
In future years, BWA recommends that MRWPCA adjust its addition al fees and charges annually by the change in the CPI to keep the fees aligned with future cost inflation. The ordinance or resolution should allow for implementation of a multi‐year adjustment if MRWPCA ever opts to temporarily defer any annual adjustments. Additionally, BWA recommends tha t MRWPCA’s additional fees and charged be independently reviewed and/or updated approximately once every three to five years.

However, MRWPCA can revise specific fees on a case‐by‐case in between comprehensive fee updates basis when warranted.

BARTLE WELLS ASSOCIATES 40
MRWPCA Comprehensive Rate & Fee Study
Table 14 – Updated Fees & Charges

Standard fees and charges are shown above. Different fees or c harges may be levied on case‐by‐case basis to better reflect the actual cost for providing a service, as determined by MRWPCA.

Updated Additional Fees & Charges

APPENDIX A

MRWPCA Financial Plan & Rate Study Tables
Pollution Control Agency
Monterey Regional Water
MRWPCA Financial Plan
& Rate Study Tables

Esc % 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 Rate Adjustment % 3.26% 10.0% 10.0% 10.0% 8.0% 8.0% 8.0% 2.0% 2.0% 2.0% 2.0% Projected Monthly Residential Charge $15.85 $17.42 $19.15 $21.06 $22 .74 $24.56 $26.52 $27.05 $27.59 $28.14 $28.70 Rate Adjustment $ (to Residential Charge) $0.50 $1.57 $1.73 $1.91 $1.68 $1.82 $1.96 $0.53 $0.54 $0.55 $0.56 Residential Billing Equivalents 111,761 111,961 112,111 112,261 112, 411 112,561 112,711 112,861 113,011 113,111 113,211 Growth (Residential Equivalents) 200 150 150 150 150 150 150 150 100 100 100 Interest Earnings Rate 0.7% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% Capacity Charge per Residential Equivalent +2% $3,506 $3,389 $3,457 $3,526 $3,597 $3,669 $3,742 $3,817 $3,893 $3,971 $4,050 Beginning Unrestricted Fund Reserves $3,690,000 $6,845,000 $6,833,000 $6,784,000 $6,797,000 $6,897,000 $7,219,000 $7,595,000 $7,965,000 $8,197,000 $8,421,000

REVENUES
Wastewater Treatment Charges ‐ 21,257,000 23,447,000 25,821,000 28, 444,000 30,763,000 33,264,000 35,974,000 36,740,000 37,514,000 38,294,000 39,089,000 Military Wastewater Charges ‐ 374,000 374,000 374,000 374,000 374,00 0 374,000 374,000 374,000 374,000 374,000 374,000 Liquid Waste & Grease Haulers 2% 630,000 643,000 656,000 669,000 682, 000 696,000 710,000 724,000 738,000 753,000 768,000 Brine 0% 183,000 183,000 183,000 183,000 183,000 183,000 183,000 183,000 183,000 183,000 183,000 Interruptible Rates (rate may change) 0% 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 User Penalties/Lien Penals & Trans 0% 425,000 425,000 425,000 425,00 0 425,000 425,000 425,000 425,000 425,000 425,000 425,000 NSD Agency Billing Fees 0% 86,000 86,000 86,000 86,000 86,000 86,000 86 ,000 86,000 86,000 86,000 86,000 Fee for Services ‐ Outside Entities 2% 189,000 193,000 197,000 201,0 00 205,000 209,000 213,000 217,000 221,000 225,000 230,000 Lift Station Maintenance 2% 150,000 153,000 156,000 159,000 162,000 165,000 168,000 171,000 174,000 177,000 181,000 WRA Reclamation Indirect Charges 4% 426,000 443,000 461,000 479,000 4 98,000 518,000 539,000 561,000 583,000 606,000 630,000 Pure Water Monterey Indirect Charges 4% 0 0 300,000 312,000 324,000 33 7,000 350,000 364,000 379,000 394,000 410,000 Interest Earnings ‐ 30,000 68,000 68,000 68,000 68,000 69,000 72,000 76,000 80,000 82,000 84,000 Capacity Charges ‐ 700,000 508,000 519,000 529,000 540,000 550,000 561,000 573,000 389,000 397,000 405,000 Miscellaneous Income 0% 181,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000__________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total Revenues 24,996,000 27,038,000 29,761,000 32,444,000 34,825,00 0 37,391,000 40,170,000 41,009,000 41,661,000 42,511,000 43,380,000 SRF Reimbursement to WW 4,000,000

EXPENSES
Operating & Maintenance
Salaries & Benefits 4% 11,158,000 11,604,000 12,068,000 12,551,000 13 ,053,000 13,575,000 14,118,000 14,683,000 15,270,000 15,881,000 16,516,000 CalPERS Payments ‐ 790,000 947,000 1,219,000 1,516,000 1,809,000 2,10 9,000 2,369,000 2,464,000 2,563,000 2,666,000 2,773,000 Less Sals/Bens Charged to WRA & CIP 4% (1,361,000) (1,415,000) (1,4 72,000) (1,351,000) (1,405,000) (1,461,000) (1,519,000) (1,580,000) (1,643,000) (1,709,000) (1,777,000) New Positions: Adm Asst/Public Outreach 4% 0 208,000 216,000 225,000 234,000 243,000 253,000 263,000 274,000 285,000 296,000 New Positions: Back from GWR 4% 0 0 0 300,000 312,000 324,000 337,000 350,000 364,000 379,000 394,000 Professional/Contract Svcs/Op Supplies 4% 1,778,000 1,849,000 1,923,000 2,000,000 2,080,000 2,163,000 2,250,000 2,340,000 2,434,000 2,531,000 2,632,000 Chemicals 4% 1,454,000 1,512,000 1,572,000 1,635,000 1,700,000 1,768,0 00 1,839,000 1,913,000 1,990,000 2,070,000 2,153,000 Utilities 4% 2,274,000 2,365,000 2,460,000 2,558,000 2,660,000 2,766,0 00 2,877,000 2,992,000 3,112,000 3,236,000 3,365,000 Maintenance & Repairs 4% 1,213,000 1,262,000 1,312,000 1,364,000 1,419,000 1,476,000 1,535,000 1,596,000 1,660,000 1,726,000 1,795,000 Office Expense/Info Systems/Other 4% 1,092,000 1,136,000 1,181,000 1,228,000 1,277,000 1,328,000 1,381,000 1,436,000 1,493,000 1,553,000 1,615,000 Major O&M 4% 460,000 500,000 520,000 541,000 563,000 586,000 609,000 633,000 658,000 684,000 711,000 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Subtotal 18,858,000 19,968,000 20,999,000 22,567,000 23,702,000 24,877,000 26,049,000 27,090,000 28,175,000 29,302,000 30,473,000 Debt Service
2006 Wastewater Rev Bonds 127,000 1,024,000 0 0 0 0 0 0 0 0 0 2012 Wastewater Rev Refi Bonds 811,000 843,000 871,000 905,000 941,0 00 974,000 1,009,000 1,047,000 1,086,000 1,125,000 0 2013 Pension Obligation Bonds 1,313,000 315,000 1,225,000 1,129,000 1,136,000 1,156,000 1,157,000 1,106,000 1,054,000 1,028,000 0__________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Subtotal 2,251,000 2,182,000 2,096,000 2,034,000 2,077,000 2,130,000 2,166,000 2,153,000 2,140,000 2,153,000 0 Capital Improvements
Capital Improvement Projects 3% 2,710,000 4,400,000 6,200,000 7,300, 000 8,400,000 9,500,000 11,000,000 10,800,000 10,500,000 10,200,000 11,500,000 CIP Carry‐Forward & GWR Contribution 1,522,000 0 0 0 0 0 0 0 0 0 0 Capitalized Equipment 3% 500,000 500,000 515,000 530,000 546,000 562,000 579,000 596,000 614,000 632,000 651,000__________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Subtotal 4,732,000 4,900,000 6,715,000 7,830,000 8,946,000 10,062,000 11,579,000 11,396,000 11,114,000 10,832,000 12,151,000 Total Expenses 25,841,000 27,050,000 29,810,000 32,431,000 34,725,000 37,069,000 39,794,000 40,639,000 41,429,000 42,287,000 42,624,000 Revenues Less Expenses 3,155,000 (12,000) (49,000) 13,000 100,000 322,000 376,000 370,000 232,000 224,000 756,000 Ending Fund Reserves/Working Capital 6,845,000 6,833,000 6,784,000 6,797,000 6,897,000 7,219,000 7,595,000 7,965,000 8,197,000 8,421,000 9,177,000 Fund Rsrv Target (25% O&M +$2M CIP) 6,710,000 6,990,000 7,250,000 7,640,000 7,930,000 8,220,000 8,510,000 8,770,000 9,040,000 9,330,000 9,620,000 Debt Service Coverage: Wastewater Only 2.73 3.24 4.18 4.86 5.36 5.88 6.52 6.46 6.30 6.14 ‐ Debt Service Coverage: All Debt 1.95 2.19 2.13 2.34 2.54 2.75 3.00 3.00 2.96 2.93 4.37 Table 1 ‐ MRWPCA Wastewater Cash Flow Projections
A-1
Esc % 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 20 24/25 2025/26 2026/27

REVENUES
Wastewater Revenues
Wastewater Treatment Charges 21,257, 000 23,447,000 25,821,000 28,444,000 30,763,000 33,264,000 35,974,000 36,740,000 37,514,000 38,294,000 39,089,000 Other Wastewater Revenues 3,739,000 3,591,000 3,940,000 4,000,000 4,062,000 4,127,000 4,196,000 4,269,000 4,147,000 4,217,000 4,291,000 Subtotal 24,996,000 27,038,000 29,761,000 32,444,000 34,825,000 37,391,000 40,170,000 41,009,000 41,661,000 42,511,000 43,380,000 Reclamation Reimbursements
Operating Reimbursements 4,365,000 4,496,000 4,631,000 4,770,000 4,913,000 5,060,000 5,212,000 5,368,000 5,529,000 5,695,000 5,866,000 Debt Service Reimbursements 1,767,000 1,752,000 1,105,000 1,090,000 1,075,000 1,060,000 1,045,000 1,030,000 1,015,000 1,000,000 985,000 Subtotal 6,132,000 6,248,000 5, 736,000 5,860,000 5,988,000 6,120,0 00 6,257,000 6,398,000 6,544,000 6,695,000 6,851,000 Pure Water Monterey Revenues
Water Sales (Cal‐Am) 2% ‐ ‐ 6,020,000 6, 140,000 6,263,000 6,388,000 6,516,000 6,646,000 6,779,000 6,915,000 7,053,000 Other Revenues 2% ‐ ‐ 1,368,000
1,395,000 1,423,000 1,451,000 1,480,000 1,510,000 1,540,000 1,571,000 1,602,000 Subtotal ‐ ‐ 7,388,000 7,535, 000 7,686,000 7,839,000 7,996,000 8,156,000 8,319,000 8,486,000 8,655,000 Total Revenues 31,128,000 33,286,000 42,885,000 45,839,000 48,499,000 51,350,000 54,423,000 55,563,000 56,524,000 57,692,000 58,886,000 OPERATING EXPENSES
Wastewater O&M 18,858,000 19,968,000 20,999,000 22,567,000 23,702,000 24,877,000 26,049,000 27,090,000 28,175,000 29,302,000 30,473,000 Reclamation O&M 3% 4,365,000 4,496,000 4,631,000 4,770,000 4,913,000 5,060,000 5,212,000 5,368,000 5,529,000 5,695,000 5,866,000 Pure Water Monterey O&M 1.5% ‐ ‐ 3,400,000 3,451,000 3,503,000 3,5 56,000 3,609,000 3,663,000 3,718,000 3,774,000 3,831,000__________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total Operating Expenses 23,223,000 24,464,000 29,030,000 30,788,000 32,118,000 33,493,000 34,870,000 36,121,000 37,422,000 38,771,000 40,170,000 NET REVENUES 7,905,000 8,822,000 13,855,000 15,051,000 16,381,000 17,857,000 19,553,000 19,442,000 19,102,000 18,921,000 18,716,000 DEBT SERVICE
2006 Bonds (MRWPCA) 127,000 1,024,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2012 Bonds (MRWPCA) 811,000 843,000 871,000 905,000 941,000 974,000 1,009,000 1,047,000 1,086,000 1,125,000 ‐ 2013 Bonds (MRWPCA) 1,313,000 315,000 1,225,000 1,129,000 1,136,000 1,156,000 1,157,000 1,106,000 1,054,000 1,028,000 ‐ Future Bonds/Loans (MRWPCA) 00000000000
1999 SRF Loan (SVRP) 632,000 632,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2003 USBR Loan (SVRP) 1,135,000 1,120,000 1,105,000 1,090,000 1,075,000 1,060,000 1,045,000 1,030,000 1,015,000 1,000,000 985,000 2017 SRF Loan (PWM) ‐ ‐ 3,300,000 3,300,000 3,300,000 3,300,000 3,300,000 3,300,000 3,300,000 3,300,000 3,300,000 Line of Credit Payments (PWM) 30,000 100,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total Debt Service 4,048,000 4,034,000 6,501,000 6,424,000 6,452,0 00 6,490,000 6,511,000 6,483,000 6,455,000 6,453,000 4,285,000 DEBT SERVICE COVERAGE
Wastewater Agency 2.73 3.24 4.18 4.86 5.36 5.88 6.52 6.46 6.30 6.14 ‐ Water Reclamation Authority 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1. 00 1.00 1.00 Pure Water Monterey ‐ ‐ 1.21 1.24 1.27 1.30 1.33 1.36 1.39 1.43 1.46__________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total Debt Service Coverage 1.95 2.19 2.13 2.34 2.54 2.75 3.00 3.00 2.96 2.93 4.37 REMAINING NET REVENUES
Wastewater Agency 3,887,000 4,888,000 6,666,000 7,843,000 9,046,00 0 10,384,000 11,955,000 11,766,000 11,346,000 11,056,000 12,907,000 Water Reclamation Authority 00000000000
Pure Water Monterey (30,000) (100,000) 688,000 784,000 883,000 983, 000 1,087,000 1,193,000 1,301,000 1,412,000 1,524,000__________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total Remaining Net Revenues 3,857,000 4,788,000 7,354,000 8,627,000 9,929,000 11,367,000 13,042,000 12,959,000 12,647,000 12,468,000 1 4,431,000 Table 2 ‐ MRWPCA Debt Service Coverage Projections
A-2
Table 3
MRWPCA
Wastewater Accounts & Loadings
Accounts Billing Flow Flow BOD SS BOD SS
Customer Class (est) Units Units Historical Updated gpd mgd mg/l mg/l lbs lbs RESIDENTIAL 80%
102 Residential 51,778 86,971 189 150 13,045,650 13.05 300 300 11,913,679 11,913,679 Vacant/Minimum Chg 7.7 6.1
COMMERCIAL 80%
001 Business 6,100 8,348 Location/each business 146 117 976,716 0.98 150 150 445,983 445,983 221 Hotel/Motel 156 6,402 Each room 82 66 422,532 0.42 310 120 398,731 154, 348 222 Bed & Breakfast 13 201 Each room 54 43 8,643 0.01 310 120 8,156 3,157 231 Supermarket 53 53 Location 797 638 33,814 0.03 800 800 82,347 82,347 241 Medical office 660 660 Each licensed physician 195 156 102,960 0.10 130 80 40,745 25,074 242 Dental Office 231 231 Each licensed dentist 269 215 49,665 0.05 130 8 0 19,654 12,095 243 Rest Home 46 1,852 Each bed of licensed capacity 54 43 79,636 0.08 2 50 100 60,605 24,242 244 Hospital 5 5 Each bed of licensed capacity 320 256 1,280 0.00 250 100 974 390 245 Animal Hospital 20 20 Location/each business 365 292 5,840 0.01 250 100 4,444 1,778 261 Restaurant 1 meals 37 2,237 Each restaurant seat 7 6 13,422 0.01 100 0 600 40,858 24,515 262 Restaurant 2 meals 203 12,183 Each restaurant seat 11 9 109,647 0.11 1000 600 333,776 200,266 263 Restaurant 3 meals 48 3,366 Each restaurant seat 21 17 57,222 0.06 1 000 600 174,189 104,514 264 Restaurant w/bar 80 11,895 Each restaurant seat 21 17 202,215 0.20 1 000 600 615,563 369,338 265 Bar 37 37 Location/each business 317 254 9,398 0.01 200 200 5,722 5,722 266 Night Club 2 2 Location/each business 950 760 1,520 0.00 200 200 925 925 267 Take‐Out small 308 308 Location/each business 354 283 87,164 0.09 50 0 300 132,668 79,601 268 Take‐Out medium 62 62 Location/each business 871 697 43,214 0.04 500 300 65,774 39,464 269 Take‐Out large 30 30 Location/each business 1,588 1,270 38,100 0.04 500 300 57,990 34,794 270 Bakery 98 98 Location/each business 287 230 22,540 0.02 1000 600 68,61 4 41,168 281 Theatre 11 56 Per screen at each location 471 377 21,112 0.02 150 150 9,640 9,640 282 Bowling Center 2 2 Location/each business 1,433 1,146 2,292 0.00 150 150 1,047 1,047 290 Mortuary 7 7 Location/each business 387 310 2,170 0.00 800 800 5,285 5, 285 School, Minimum 121 121 Location/each business 146 117 14,157 0.01 150 1 50 6,464 6,464 292 School K‐5 72 30,446 School population 2 2 60,892 0.06 130 100 24,097 1 8,536 293 School 6‐college 42 30,016 School population 4 4 120,064 0.12 130 100 47,513 36,549 294 Boarding School 7 1,387 School population 40 40 55,480 0.06 233 165 39 ,351 27,866 331 Garage Repair 236 236 Location/each business 140 112 26,432 0.03 180 280 14,483 22,529 332 Garage Repair (11‐20) 4 4 Location/each business 140 112 448 0.00 18 0 280 245 382 353 Dry Cleaners 18 18 Location/each business 483 386 6,948 0.01 150 150 3 ,173 3,173 354 Laundromat 17 1,888 Each washing machine 127 102 192,576 0.19 150 110 87,933 64,484 211 Vacant/Minimum Chg 853 Location/each business
Subtotal Commercial 8,756 2,771,609 2.77 332 219 2,796,949 1,845,673 TOTAL 15,817,259 15.82 306 286 14,710,628 13,759,352
Flow per Unit (gpd)
A-3
Table 4
MRWPCA
Special Wastewater Users & Loadings (Billed Individually)

BOD SS BOD SS
Customer Class Account Accts gpd mgd mg/l mg/l lbs lbs Special Commercial & Industrial Users
Chevron Ground Water 410 001683013/03‐12087 1 146 0.0001 0 0 0 0 Community Hospital 401 008132011/03‐7346 1 21,589 0.0216 250 100 16,430 6,572 CSUMB 401 031101001/13‐322 1 59,643 0.0596 233 165 42,303 29,957 Del Monte Meat Company 406 033281024/12‐4304 1 3,224 0.0032 800 800 7,851 7,851 Fairgrounds 407 013221001/03‐9325 1 5,603 0.0056 233 165 3,974 2,814 Golds Gym 407 013312008/03‐9871 1 1,925 0.0019 150 150 879 879 Hospice House 401 001771041/03‐585 1 3,065 0.0031 250 100 2,333 933 In N Out 011401023/10‐001545 1 5,995 0.0060 0 0 In Shape Fitness 013161028/03‐009173 1 5,609 0.0056 150 150 2,561 2,561 Lula Chocolate 259031018/03‐010823 1 343 0.0003 0 0 Marina Civic Center 407 032311002/12‐1627 1 414 0.0004 150 150 189 189 Meadowbrook 407 012414040/10‐4929 1 598 0.0006 150 150 273 273 Monterey Airport 401 013221020/03‐10915 1 14,717 0.0147 336 251 15,053 11,245 Monterey Aquarium 407 001011001/03‐11814 1 18,150 0.0182 211 198 11,658 10,940 Monterey Aquarium 407 001011001/03‐11815 1 11,036 0.0110 150 150 5,039 5,039 Monterey Aquarium 407 001011001/3‐12110 1 579 0.0006 0 0 0 0 Monterey Aquarium 032421012/12‐4605 1 273 0.0003 0 0 0 0 Monterey Conference Cntr 401 001567016/03‐4136 1 3,513 0.0035 1000 600 10,694 6,416 Monterey Fish ‐ Wharf 406 001702001/03‐10703 1 1,039 0.0010 1884 212 5,959 671 Monterey Pen Dialysis 401 013191018/3‐9300 1 5,679 0.0057 130 80 2,247 1,383 Monterey Peninsula Surgery 259‐222‐007/03‐12349 1 2,247 0.0022 0 0 Monterey Salinas Transit 367 259011067/03‐8174 1 968 0.0010 180 270 530 796 Monterey Sports Cntr 407 001707005/3‐5324 1 11,501 0.0115 150 150 5,252 5,252 Monterey Youth Center 407 001994001/03‐7304 1 713 0.0007 150 150 326 326 National Custom Packing 406 133491034/99‐1435 1 8,534 0.0085 1371 1901 35,616 49,385 Ocean Mist Farms 406 030301009/99‐1619 1 45,148 0.0451 30 249 4,123 34,221 Oldemeyer Center 407 012371058/10‐4498 1 2,054 0.0021 150 150 938 938 Pattulo Swim Center 407 012381018/10‐4507 1 3,219 0.0032 150 150 1,470 1,470 Petsmart 401 011011045/11‐877 1 1,469 0.0015 150 150 671 671 Rayne Monterey 012182005/10‐002795 1 1,121 0.0011 0 0 0 Sea Harvest 406 133241018/98‐1278 1 1,631 0.0016 1884 212 9,354 1,053 Steinbeck Plaza 401 001023017/3‐11813 1 222 0.0002 0 0 0 0 YMCA 407 001728003/03‐5517 1 203 0.0002 150 150 93 93 A‐1 Moving 401 177141063/15‐13344 1 1,571 0.0016 0 0 0 0 Boys And Girls Club 407 003231002/5‐16756 1 2,162 0.0022 130 100 856 658 Bread Box Rec Center 407 004611004/5‐16577 1 234 0.0002 150 150 107 107 Broadway Bingo 407 003631027/5‐12344 1 761 0.0008 150 150 347 347 Cammachos Food Processing 406 177141071/15‐10286 1 300 0.0003 2231 1453 2,037 1,327 Coca‐Cola 410 002155025/05‐16573 1 1,856 0.0019 0 1624 0 9,175 Culligan 405 002061027/5‐16578 1 14,572 0.0146 3 55 133 2,440 Davita Corp 261716015/15017238 1 6,454 0.0065 130 80 2,554 1,572 Dayton Street Cooling 401 177141059/15‐017947 1 146 0.0001 0 0 0 0 Easton 401 177181023/15‐15998 1 500 0.0005 30 249 46 379 Go Kids Inc 407 003861014/5‐10234 1 1,138 0.0011 150 150 520 520 Golds Gym 153621005/15‐17592 1 1,207 0.0012 150 150 551 551 Hartnell College 401 002281099/05‐1838 1 12,778 0.0128 130 100 5,057 3,890 Hibino Farms 406 003161018/05‐6740 1 2,073 0.0021 143 324 902 2,045 Jack & The Bean Stalk Tofu 003171025/05‐16846 1 251 0.0003 0 0 0 0 Jack & The Bean Stalk Sprout 003171025/05‐16851 1 9,414 0.0094 0 0 0 0 In‐N‐Out Burger 401 003‐092‐002/05‐6384 1 5,435 0.0054 500 300 8,272 4,963 In Shape Fitness 401 261711032/15‐006462 1 7,413 0.0074 150 150 3,385 3,385 Natividad 401 003851018/05‐10222 1 64,933 0.0649 250 100 49,416 19,766 NH3 410 002751009/05‐5462 1 5,641 0.0056 0 0 0 0 Petsmart 401 261‐146‐004/15‐15048 1 1,261 0.0013 150 150 576 576 Flow
A-4
Table 4
MRWPCA
Special Wastewater Users & Loadings (Billed Individually)

BOD SS BOD SS
Customer Class Account Accts gpd mgd mg/l mg/l lbs lbs Flow
Pilot Center 401 003461010/5‐16680 1 15,360           0.0154 150 150 7,014 7,014 Quinn Company 367 002‐952‐001/5‐16649 1 3,030             0.0030 180 270 1,660 2,490 Rodeo Grounds 407 003‐231‐002/05‐16651 1 2,567             0.0026 150 150 1,172 1,172 Salinas Airport 401 003863036/05‐10248 1 4,171             0.0042 483 326 6,133 4,139 Salinas Tallow 408 003011045/05‐6082 1 8,282             0.0083 3186 341 80,323 8,597 Salinas Valley Aquatics 407 002231002/05‐16650 1 5,921             0.0059 150 150 2,704 2,704 Salinas Valley Cooling 410 003461006/05‐16684 1 6,415             0.0064 47 51 918 996 Salinas Valley Dialysis 401 016233001/15‐9193 1 6,204             0.0062 130 80 2,455 1,511 Salinas Valley Memorial 401 002711002/05‐5323 1 48,295           0.0483 250 100 36,754 14,701 Semco 401 177191010/15‐12969 1 2,873             0.0029 47 71 411 621 Shell (GW) 401 003084040/05‐16748 1 ‐                ‐        0 0 0 0 Soilserv 403 002821009/05‐5520 1 6,394             0.0064 36 44 701 856 Sabor Farms LLC 406 003581013/05‐016958 1 33,546           0.0335 438 2523 44,727 257,642 Tosca 177181001/15‐10919 1 10,309           0.0103 0 0
Valley Weigh & Wash 367 003591019/5‐16702 1 4,915             0.0049 180 270 2,693 4,040 West Valley 367 261031014/15‐10465 1 146                0.0001 180 270 80 120 Western Farm Service 410 003471030/05‐16239 1 120                0.0001 0 0 0 0 Ymca 407 002401014/05‐2836 1 5,829             0.0058 56 51 994 905 Arco Car Wash 366 253331019/15‐14229 1 3,605             0.0036 20 150 219 1,646 Arco Car Wash/Work St 366 003461014/05‐16774 1 5,763             0.0058 20 150 351 2,631 Castroville 366 030253006/99‐954 1 867                0.0009 20 150 53 396 Circle K (Alco) 153481021/15‐11680 1 2,248             0.0022 20 150 137 1,026 Chevron 366 032171009/12‐861 1 5,445             0.0054 20 150 332 2,486 Chevron/Salinas 366 253062002/15‐835 1 7,675             0.0077 20 150 467 3,505 Chevron 366 261145043/15‐12795 1 10,312           0.0103 20 150 628 4,709 Del Rey Car Wash 366 012471017/09‐833 1 3,207             0.0032 20 150 195 1,464 Ebbs 366 013171008/03‐9177 1 1,257             0.0013 20 150 77 574 El Estero 366 001733008/03‐5592 1 6,327             0.0063 20 150 385 2,889 King Klean 366 003381006/05‐15925 1 1,664             0.0017 20 150 101 760 Marina Car Wash 366 032312033/12‐1654 1 1,008             0.0010 20 150 61 460 Oasis Car Wash 366 030166001/99‐1438 1 168                0.0002 20 150 10 77 Oil Can Henry'S 366 261711065/15‐10898 1 1,892             0.0019 20 150 115 864 Salinas Car Wash 366 003143011/05‐6608 1 4,358             0.0044 20 150 265 1,990 Shell ‐ Marina 032421001/12‐002524 1 2,003             0.0020 20 150 122 915 Shell ‐ Salinas (E) 366 004611017/05‐14363 1 2,646             0.0026 20 150 161 1,208 Shell ‐ Salinas (S) 366 207101026/15‐11874 1 4,950             0.0050 20 150 301 2,260 Shell ‐ Salinas (N) 366 211232023/15‐11632 1 4,111             0.0041 20 150 250 1,877 Shell ‐ Salinas N Main 003201013/05‐016972 1 1,780             0.0018 20 150 108 813 Shell ‐ Seaside 366 011561026/10‐2031 1 5,387             0.0054 20 150 328 2,460 Sofa Spray 366 003041031/05‐6167 1 1,533             0.0015 20 150 93 700 Soft Spray 366 003891019/05‐10409 1 2,284             0.0023 20 150 139 1,043 Splash Car Wash 366 002‐761012/05‐5484 1 12,649           0.0126 20 50 770 1,925 Star 366 004601031/05‐14295 1 1,670             0.0017 20 150 102 763 35 Cents 366 011555003/10‐1967 1 1,848             0.0018 20 150 113 844 Ultra 366 011011038/11‐893 1 2,627             0.0026 20 150 160 1,200 Villa Hand Car Wash 366 207091018/15‐326 1 4,439             0.0044 20 150 270 2,027 Asilomar 361 006601001/04‐4256 1 20,319           0.0203 500 600 30,927 37,112 Bay Park 361 001761050/03‐5890 1 6,901             0.0069 500 600 10,504 12,604 Casa Munras 361 001681038/03‐5090 1 13,696           0.0137 500 600 20,846 25,015 Clement The 001‐012‐017/03‐00071 1 24,032           0.0240 500 600 36,578 43,893 Embassy Suites 361
011401031/10‐7343 1 32,646           0.0326 500 600 49,689 59,627 Hilton Inn 361 001781021/03‐6042 1 21,176           0.0212 500 600 32,231 38,677 Hyatt Del Monte 361 013211015/03‐9313 1 17,240           0.0172 500 600 26,240 31,488 Monterey Beach Hotel 361 011422017/03‐7445 1 26,330           0.0263 500 600 40,076 48,091 Monterey Marriott 361 001384003/03‐3245 1 18,912           0.0189 489 487 28,152 28,037 A-5
Table 4
MRWPCA
Special Wastewater Users & Loadings (Billed Individually)

BOD SS BOD SS
Customer Class Account Accts gpd mgd mg/l mg/l lbs lbs Flow
Monterey Plaza 361 001031011/03‐272 1 33,733 0.0337 500 600 51,343 61,612 Portola Plaza 361 001567019/03‐4139 1 40,339 0.0403 500 600 61,398 73,678 Del Mar French 351 001704002/03‐5309 1 6,853 0.0069 133 143 2,775 2,983 Mission Linen 351 002051002/05‐104 1 57,836 0.0578 713 365 125,530 64,261 Mission Uniform 351 003083017/05‐6355 1 27,616 0.0276 207 177 17,402 14,880 Di Maggio'S Classic 006234008/04001621 1 1,329 0.0013 0 0 Economy 352 011011029/11‐839 1 1,141 0.0011 450 240 1,563 834 Ideal 352 002914005/05‐5761 1 779 0.0008 450 240 1,067 569 Market 352 002164008/05‐826 1 996 0.0010 450 240 1,364 728 Quality Drive Thru 352 207101038/15‐335 1 1,017 0.0010 450 240 1,393 743 Vapor 352 001852016/3‐6591 1 1,667 0.0017 450 240 2,284 1,218 Total 120 1,004,928 1.0049 326 370 996,986 1,130,695 Source: Flow data from calendary year 2016.

A-6
Table 5
MRWPCA
Projected Expenses by Department
Cost Budget
Department Escalation 2016/17 2017/18 2018/19 2019/20 Operating & Maintenance
10 Administration 4% $1,188,000 $1,236,000 $1 ,285,000 $1,336,000 New: Admin Asst/Public Outreach 4% 0 208,000 216,000 225,000 New Positions: Back from GWR 4% 0 0 0 70,000
11 Human Resources 4% 412,000 428,000 445,000 463,000
12 Customer Service 4% 909,000 945,000 983,000 1,022,000 13 Finance 4% 1,046,000 1,088,000 1,132,000 1,177,000
14 Engineering  Services 4% 990,000 1,030,000 1,071,000 1,114,000 New Positions: Back from GWR 4% 0 0 0 230,000
Reduction in Sal/Bens from WRA 0 0 0 180,000
15 Information Services 4% 423,000 440,000 458,000 476,000 16 Safety 4% 305,000 317,000 330,000 343,000
20 Boad of Directors 4% 56,000 58,000 60,000 62,000
25 Environmental Services 4% 1,223,000 1,272,000 1,323,000 1,376,000 30 RTP Administration 4% 388,000 404,000 420,000 437,000 32 Field Maintenance 4% 3,295,000 3,427,000 3,564,000 3,707,000 35 Plant Maintenance 4% 2,292,000 2,384,000 2,479,000 2,578,000 37 Cogen 4% 1,029,000 1,070,000 1,113,000 1,158,000
39 Utilities 4% 848,000 882,000 917,000 954,000
40 Operations 4% 3,994,000 4,154,000 4,320,000 4,493,000 Add'l CalPERS Payments 0 125,000 363,000 625,000
Major O&M 4% 460,000 500,000 520,000 541,000__________ __________ __________ __________ Subtotal 18,858,000 19,968,000 20 ,999,000 22,567,000
Debt Service
2006 Wastewater Rev Bonds 127,000 1,024,000 0 0
2012 Wastewater Rev Refi Bonds 811,000 843,000 871,000 905,000 2013 Pension Obligation Bonds 1,313,000 315,000 1,225,000 1,129,000__________ __________ __________ __________ Subtotal 2,251,000 2,182,000 2,096,000 2,034,000
Capital Improvements
Capital Improvement Projects 4,232,000 4,400,000 6,200,000 7,300,00 0 Capitalized Equipment 500,000 500,000 515,000 530,000__________ __________ __________ __________ Subtotal 4,732,000 4,900,000 6,715,000 7,830,000
Total Expenses 25,841,000 27,050,000 29 ,810,000 32,431,000 Projected Expenses
A-7
Table 6
MRWPCA
Allocation of CalPERS Contributions by Department
Budget % of
2016/17 Total 2017/18 2018/19 2019/20
Add'l CalPERS Funding Needs 125,000 363,000 625,000
Allocation of CalPERS Contribution by Department
10 Administration 35,800 4.8% 6,062 17,605 30,312
11 Human Resources 17,200 2.3% 2,913 8,458 14,563
12 Customer Service 43,800 5.9% 7,417 21,539 37,085
13 Finance 51,200 6.9% 8,670 25,178 43,351
14 Engineering  Services 76,200 10.3% 12,904 37,472 64,518 15 Information Services 13,400 1.8% 2,269 6,590 11,346
16 Safety 12,800 1.7% 2,168 6,295 10,838
20 Boad of Directors 0 0.0% 0 0 0
25 Environmental Services 73,300 9.9% 12,413 36,046 62,063 30 RTP Administration 18,800 2.5% 3,184 9,245 15,918
32 Field Maintenance 36,800 5.0% 6,232 18,097 31,158
35 Plant Maintenance 109,500 14.8% 18,543 53,848 92,713 37 Cogen 22,400 3.0% 3,793 11,015 18,966
39 Utilities 36,400 4.9% 6,164 17,900 30,820
40 Operations 190,563 25.8% 32,270 93,712 161,349
Total 738,163 100.0% 125,000 363,000 625,000
Allocation of CalPERS Increase
A-8
Table 7
MRWPCA
Operating Expense Allocation by Department
Projected Additional Total
2019/20 CalPERS 2019/20
Expenses Contribution Expenses
Operating & Maintenance Expenses by Department
Administration $1,336,000 $30,000 $1,366,000
New: Admin Asst/Public Outreach 225,000 0 225,000
New Positions: Back from GWR 70,000 0 70,000
Human Resources 463,000 15,000 478,000
Customer Service 1,022,000 37,000 1,059,000
Finance 1,177,000 43,000 1,220,000
Engineering  Services 1,114,000 65,000 1,179,000
New Positions: Back from GWR 230,000 0 230,000
Reduction in Sal/Bens from WRA 180,000 0 180,000
Information Services 476,000 11,000 487,000
Safety 343,000 11,000 354,000
Boad of Directors 62,000 0 62,000
Environmental Services 1,376,000 62,000 1,438,000
RTP Administration 437,000 16,000 453,000
Field Maintenance 3,707,000 31,000 3,738,000
Plant Maintenance 2,578,000 93,000 2,671,000
Cogen 1,158,000 19,000 1,177,000
Utilities 954,000 31,000 985,000
Operations 4,493,000 161,000 4,654,000
Major O&M 541,000 0 541,000__________ __________ __________ Total 21,942,000 625,000 22,567,000
A-9
Table 8
MRWPCA
Cost Allocation 2019/20
Dept Title 2019/20 Cust Svc Flow BOD SS Cust Svc Flow BOD SS Operating & Maintenance
Administration $1,366,000 0% 60% 20% 20% $0 $819,600 $273,200 $273,200 New: Admin Asst/Public Outreach 225,000 0% 60% 20% 20% 0 135,000 45,000 45,000 New Positions: Back from GWR 70,000 0% 60% 20% 20% 0 42,000 14,000 14,000 Human Resources 478,000 5% 60% 15% 20% 23,900 286,800 71,700 95,600 Customer Service 1,059,000 100% 0% 0% 0% 1,059,00 0000
Finance 1,220,000 5% 60% 15% 20% 61,000 732,000 183,000 244,000 Engineering  Services 1,179,000 0% 53% 34% 13% 0 624,870 400,860 153,270 New Positions: Back from GWR 230,000 0% 53% 34% 13% 0 121,900 78,200 29,900 Reduction in Sal/Bens from WRA 180,000 0% 40% 30% 30% 0 72,000 54,000 54,000 Information Services 487,000 5% 35% 30% 30% 24,350 170,450 146,100 146,100 Safety 354,000 0% 40% 30% 30% 0 141,600 106,200 106,200 Boad of Directors 62,000 0% 60% 20% 20% 0 37,200 12,400 12,400 Environmental Services 1,438,000 0% 10% 40% 50% 0 143,800 575,200 719,000 RTP Administration 453,000 0% 60% 20% 20% 0 271,800 90,600 90,600 Field Maintenance 3,738,000 0% 100% 0% 0% 0 3,738,000 0 0 Plant Maintenance 2,671,000 0% 55% 25% 20% 0 1,469,050 667,750 534,200 Cogen (net allocation) 1,177,000 0% 50% 25% 25% 0 588,500 294,250 294,250 Utilities 985,000 0% 40% 25% 35% 0 394,000 246,250 344,750 Operations 4,654,000 0% 55% 25% 20% 0 2,559,700 1,163,500 930,800 Major O&M 541,000 0% 50% 25% 25% 0 270,500 135,250 135,250__________ _____ _____ _____ _____ __________ __________ __________ __________ Subtotal 22,567,000 5.2% 55.9% 20.2% 18.7% 1,168,250 12,618,770 4,557,460 4,222,520 Debt Service
2006 Wastewater Rev Bonds 0 0 % 6 0 % 2 5 % 1 5 % 0000
2012 Wastewater Rev Refi Bonds 905,000 0% 60% 25% 15% 0 543,000 226,250 135,750 2013 Pension Obligation Bonds 1,129,000 5% 55% 20% 20% 56,450 620,950 225,800 225,800 __________ _____ _____ _____ _____ __________ __________ __________ __________ Subtotal 2,034,000 2.8% 57.2% 22.2% 17.8% 56,450 1,163,950 452,050 361 ,550 Capital Improvements
Capital Improvement Projects 7,300,000 0% 53% 34% 13% 0 3,869,000 2,482,000 949,000 Capitalized Equipment 530,000 0% 88% 5% 7% 0 466,400 26,500 37,100 __________ _____ _____ _____ _____ __________ __________ __________ __________ Subtotal 7,830,000 0.0% 55.4% 32.0% 12.6% 0 4,335,400 2,508,500 986,100 Total Expenses 32,431,000 3.8% 55.9% 23.2% 17.2% 1,224,700 18,118,120 7,518,010 5,570,170 Revenue Offsets
Liquid Waste & Grease Haulers 669,000 0% 5% 75% 20% 0 33,450 501,750 133 ,800 Military Wastewater 374,000 0% 50% 20% 30% 0 187,000 74,800 112,200 Brine 183,000 0% 100% 0% 0% 0 183,000 0 0
Interruptible Rates 365,000 0% 50% 20% 30% 0 182,500 73,000 109,500 User Penalties/Lien Penals & Trans 425,000 0% 50% 25% 25% 0 212,500 106 ,250 106,250 NSD Agency Billing Fees 86,000 100% 0% 0% 0% 86,00 0000 Fee for Services ‐ Outside Entities 201,000 100% 0% 0% 0% 201,00 0000 Lift Station Maintenance 159,000 5% 95% 0% 0% 7,950 151,050 0 0 WRA Reclamation Indirect Charges 479,000 0% 50% 20% 30% 0 239,500 95,80 0 143,700 Pure Water Monterey Indirect Charges 312,000 0% 50% 20% 30% 0 156,000 6 2,400 93,600 Interest 68,000 0% 60% 20% 20% 0 40,800 13,600 13,600
Capacity Charges 529,000 0% 40% 30% 30% 0 211,600 158,700 158,700 Miscellaneous Income 150,000 0% 50% 25% 25% 0 75,000 37,500 37,500 __________ _____ _____ _____ _____ __________ __________ __________ __________ Total 4,000,000 7.4% 41.8% 28.1% 22.7% 294,950 1,672,400 1,123,800 908,8 50 Total Expenses 32,431,000 3.8% 55.9% 23.2% 17.2% 1,224,700 18,118,120 7 ,518,010 5,570,170 Revenue Offsets (4,000,000) 7.4% 41.8% 28.1% 22.7% (294,950) (1,672,40 0) (1,123,800) (908,850) Fund Reserve/Contingency 13,000 3.8% 55.9% 23.2% 17.2% 491 7,263 3,014 2 ,233__________ _____ _____ _____ _____ __________ __________ __________ __________ Total 28,444,000 3.3% 57.8% 22.5% 16.4% 930,241 16,452,983 6,397,224 4,663,55 3 Cost Allocation % Cost Allocation $
Table 9
MRWPCA
Cost Allocation 2019/20
Cust Svc/Accts Flow BOD SS Total
2019/20 Rate Recovery $930,241 $16,452,983 $6,397,224 $4,663,553 $28,444,000

3.27% 57.84% 22.49% 16.40% 100.00%
Billing Units for Cost Recovery
Residential 13,045,650 13,045,650 11,913,679 11,913,679 Commercial 2,771,609 2, 771,609 2,796,949 1,845,673
Special Users 1,004,928 1,004,928 996,986 1,130,695
Growth (Res Equivs) 67,500 67,500 56,506 56,506__________ __________ __________ __________ Total 16,889,687 16,889, 687 15,764,121 14,946,554
gpd gpd lbs lbs
Cost per Unit $0.0551 $0.9741 $0.4058 $0.3120
per gpd per gpd per lb per lb
Cost per Unit for Special User Formula
Included> $1,029,221 $1,235 $950
per mgd per BOD x mgd per SS x mgd
Table 10 ‐ Rate Deriviation 2019/20
Accounts Billing Flow/Unit BOD SS Flow BOD SS
Customer Class (Est) Units gpd mg/l mg/l gpd lbs lbs

RESIDENTIAL
102/105
107/109 Residential (with Growth) 52,228 87,421 Each living unit 150 300 300 1 3,045,650 137 137 SUBTOTAL 52,228 87,421 13,045,650 11,913,679 11,913,679

COMMERCIAL/INSTITUTIONAL
A. 001 Business/Government 6,100 8,348 Location/each business 117 150 150 976,716 53 53 D. 221 Hotel/Motel 156 6,402 Each room 66 310 120 422,532 62 24 E. 222 Bed & Breakfast Inn 13 201 Each room 43 310 120 8,643 41 16 F. 231 Supermarket 53 53 Location 638 800 800 33,814 1,554 1,554 G. 241 Medical Office 660 660 Each licensed physician 156 130 80 102,960 62 38 H. 242 Dental Office 231 231 Each licensed dentist 215 130 80 49,665 85 52 I. 243 Rest Home/Convalescent 46 1,852 Each bed of licensed capacity 43 250 100 79,636 33 13 J. 244 General Hospital 55 Each bed of licensed capacity 256 250 100 1,280 195 78 K. 245 Animal Hospital 20 20 Location/each business 292 250 100 5,840 222 89 L. 261 Restaurant–One Meal 37 2,237 Each restaurant seat 6 1,000 600 13,422 18 11 262 Restaurant–Two Meals 203 12,183 Each restaurant seat 9 1,000 600 109,647 27 16 263 Restaurant–Three Meals 48 3,366 Each restaurant seat 17 1,000 600 57,222 52 31 M. 264 Restaurant w/Bar 80 11,895 Each restaurant seat 17 1,000 600 202,215 52 31 N. 265 Bar 37 37 Location/each business 254 200 200 9,398 155 155 O. 266 Nightclub 22 Location/each business 760 200 200 1,520 463 463 P. 267 Takeout Food–Small 308 308 Location/each business 283 500 300 87,164 431 258 268 Takeout Food–Medium 62 62 Location/each business 697 500 300 43,214 1,061 637 269 Takeout Food–Large 30 30 Location/each business 1,270 500 300 38,100 1,933 1,160 Q. 270 Bakery 98 98 Location/each business 230 1,000 600 22,540 700 420 R. 281 Theater 11 56 Per screen at each location 377 150 150 21,112 172 172 S. 282 Bowling Center 22 Location/each business 1,146 150 150 2,292 523 523 T. 290 Mortuary 77 Locat ion/each business 310 800 800 2,170 755 755 U. 291 School (Minimum) 121 121 Each business 117 150 150 14,157 53 53 292 School (0‐6) 72 30,446 School population 2 130 100 60,892 1 1 293 School (7‐College) 42 30,016 School population 4 130 100 120,064 2 1 294 Boarding School 7 1,387 School population 40 233 165 55,480 28 20 V. 331 Service Station/Repair 236 236 Location/each business 112 180 280 26,432 61 95 332 Service Station/Repair (11‐20) 44 Location/each business 112 180 280 448 61 95 W. 353 Dry Cleaners 18 18 Location/each business 386 150 150 6,948 176 176 X. 354 Laundromats 17 1,888 Each washing machine 102 150 110 192,576 47 34 Mobile washers Mobile washers 34 20 150 34 2 16
SUBTOTAL 8,726 332 219 2, 771,609 2,796,949 1,845,673
SPECIAL USERS (Billed Individually)
Separate Billed Ind/Comm 120 120 2,753 326 370 1,004,928 996,986 1,130,695 Special Unit Rates
Flow ($ per mgd) 1.005
BOD ($ per BOD x mgd) 326
SS ($ per SS x mgd) 370
Cust Svc ($ per account)
SUBTOTAL 120 120 329 326 370 1,004,928 996,986 1,130,695 TOTAL 61,074 16,822,187 15,707,614 14,890,048
Table 10 ‐ Rate Deriviation 2019/20
Customer Class

RESIDENTIAL
102/105
107/109 Residential (with Growth)

SUBTOTAL

COMMERCIAL/INSTITUTIONAL
A. 001 Business/Government
D. 221 Hotel/Motel
E. 222 Bed & Breakfast Inn
F. 231 Supermarket
G. 241 Medical Office
H. 242 Dental Office
I. 243 Rest Home/Convalescent
J. 244 General Hospital
K. 245 Animal Hospital
L. 261 Restaurant–One Meal
262 Restaurant–Two Meals
263 Restaurant–Three Meals
M. 264 Restaurant w/Bar
N. 265 Bar
O. 266 Nightclub
P. 267 Takeout Food–Small
268 Takeout Food–Medium
269 Takeout Food–Large
Q. 270 Bakery
R. 281 Theater
S. 282 Bowling Center
T. 290 Mortuary
U. 291 School (Minimum)
292 School (0‐6)
293 School (7‐College)
294 Boarding School
V. 331 Service Station/Repair
332 Service Station/Repair (11‐20)
W. 353 Dry Cleaners
X. 354 Laundromats
Mobile washers

SUBTOTAL
SPECIAL USERS (Billed Individually)
Separate Billed Ind/Comm
Special Unit Rates
Flow ($ per mgd)
BOD ($ per BOD x mgd)
SS ($ per SS x mgd)
Cust Svc ($ per account)

SUBTOTAL
TOTAL
Flow BOD SS Cust Svc Projected
$0.9741 $0.4058 $0.3120 $0.0551 Annual Monthly 2019/20
per gpd per lb per lb per gpd Charge Charge Revenues $146.12 $55.59 $42.74 $8.27 $252.71 $21.06 $22,093,035
12,707,768 4,834,571 3,717,068 718,815 22,091,940 1,840,995 22,093,03 5 113.97 21.68 16.67 6.45 158.76 13.23 1,325,328

64.29 25.27 7.52 3.64 100.72 8.39 644,553

41.89 16.47 4.90 2.37 65.62 5.47 13,194
621.48 630.49 484.76 35.15 1,771.88 147.66 93,912
151.96 25.05 11.85 8.60 197.46 16.45 130,284
209.43 34.53 16.34 11.85 272.14 22.68 62,869

41.89 13.28 4.08 2.37 61.62 5.13 114,009
249.37 79.06 24.31 14.11 366.85 30.57 1,834
284.44 90.18 27.73 16.09 418.44 34.87 8,369

5.84 7.41 3.42 0.33 17.01 1.42 38,118

8.77 11.12 5.13 0.50 25.51 2.13 311,397

16.56 21.00 9.69 0.94 48.18 4.02 162,376

16.56 21.00 9.69 0.94 48.18 4.02 573,815
247.42 62.75 48.25 14.00 372.42 31.03 13,777
740.32 187.76 144.36 41.88 1,114.32 92.86 2,229
275.67 174.79 80.63 15.59 546.69 45.56 168,390
678.95 430.50 198.59 38.40 1,346.45 112.20 83,477
1,237.11 784.41 361.86 69.98 2,453.36 204.45 73,602
224.04 284.12 131.07 12.67 651.90 54.33 63,892
367.24 69.86 53.71 20.77 511.57 42.63 28,647
1,116.32 212.35 163.26 63.14 1,555.07 129.59 3,110
301.97 306.35 235.54 17.08 860.95 71.75 6,027
113.97 21.68 16.67 6.45 158.76 13.23 19,210

1.95 0.32 0.19 0.11 2.57 0.21 76,724

3.90 0.64 0.38 0.22 5.14 0.43 154,883

38.96 11.51 6.27 2.20 58.95 4.91 81,722
109.10 24.90 29.78 6.17 169.96 14.16 40,101
109.10 24.90 29.78 6.17 169.96 14.16 680
376.00 71.52 54.99 21.27 523.79 43.65 9,428

99.36 18.90 10.66 5.62 134.53 11.21 253,974

33.12 0.84 4.84 1.87 40.68
2,699,824 1,135,002 575,850 152,716 4,563,392 380,282.68 4,559,931 978,900 404,577 352,777 4,614 1,740,869 145,072 1,740,869 978,900 404,577 352,777 1,740,869 varies 1,740,869
28,396,201 varies 28,393,835
Projected 2019/20 Charges
Table 11 ‐ Projected Rates
Accounts Billing
Customer Class (Est) Units Current July 1 July 1 July 1 Rates 2017 2018 2019 $ Annual %

RESIDENTIAL
102/105
107/109 Residential (with Growth) 52,228 87,421 Each living unit $15.85 $17.42 $19.15 $21.06 $5.21 9.9% SUBTOTAL 52,228 87,421 1.57 1.73 1.91

COMMERCIAL/INSTITUTIONAL
A. 001 Business/Government 6,100 8,348 Location/each business 10.75 11.52 12.35 13.23 2.48 7.2% D. 221 Hotel/Motel 156 6,402 Each room 6.70 7.22 7.78 8.39 1.69 7.8% E. 222 Bed & Breakfast Inn 13 201 Each room 4.45 4.77 5.11 5.47 1.02 7.1% F. 231 Supermarket 53 53 Location 107.00 119.13 132.63 147.66 40.66 11.3% G. 241 Medical Office 660 660 Each licensed physician 13.75 14.60 15.50 16.45 2.70 6.2% H. 242 Dental Office 231 231 Each licensed dentist 18.80 20.01 21.30 22.68 3.88 6.5% I. 243 Rest Home/Convalescent 46 1,852 Each bed of licensed capa 4.20 4.49 4.80 5.13 0.93 6.9% J. 244 General Hospital 55 Each bed of licensed capa 24.70 26.52 28.47 30.57 5.87 7.4% K. 245 Animal Hospital 20 20 Location/each business 28.55 30.52 32.62 34.87 6.32 6.9% L. 261 Restaurant–One Meal 37 2,237 Each restaurant seat 1.05 1.16 1.28 1.42 0.37 10.6% 262 Restaurant–Two Meals 203 12,183 Each restaurant seat 1.55 1.72 1.91 2.13 0.58 11.2% 263 Restaurant–Three Meals 48 3,366 Each restaurant seat 3.00 3.31 3.65 4.02 1.02 10.2% M. 264 Restaurant w/Bar 80 11,895 Each restaurant seat 3.00 3.31 3.65 4.02 1.02 10.2% N. 265 Bar 37 37 Location/each business 24.60 26.58 28.72 31.03 6.43 8.0% O. 266 Nightclub 22 Location/each business 73.05 79.13 85.72 92.86 19.81 8.3% P. 267 Takeout Food–Small 308 308 Location/each business 35.65 38.69 41.99 45.56 9.91 8.5% 268 Takeout Food–Medium 62 62 Location/each business 87.20 94.84 103.15 112.20 25.00 8.8% 269 Takeout Food–Large 30 30 Location/each business 159.00 172.90 188.01 204.45 45.45 8.7% Q. 270 Bakery 98 98 Location/each business 41.20 45.18 49.54 54.33 13.13 9.7% R. 281 Theater 11 56 Per screen at each locatio 33.85 36.55 39.47 42.63 8.78 8.0% S. 282 Bowling Center 22 Location/each business 103.00 111.19 120.04 129.59 26.59 8.0% T. 290 Mortuary 77 Locat ion/each business 52.25 58.08 64.56 71.75 19.50 11.2% U. 291 School (Minimum) 121 121 Each business 10.75 11.52 12.35 13.23 2.48 7.2% 292 School (0‐6) 72 30,446 School population 0.13 0.15 0.18 0.21 0.08 17.3% 293 School (7‐College) 42 30,016 School population 0.28 0.32 0.37 0.43 0.15 15.4% 294 Boarding School 7 1,387 School population 3.25 3.73 4.28 4.91 1.66 14.7% V. 331 Service Station/Repair 236 236 Location/each business 11.20 12.11 13.09 14.16 2.96 8.1% 332 Service Station/Repair (11‐20) 44 Location/each business 11.20 12.11 13.09 14.16 2.96 8.1% W. 353 Dry Cleaners 18 18 Location/each business 35.05 37.71 40.57 43.65 8.60 7.6% X. 354 Laundromats 17 1,888 Each washing machine 9.00 9.68 10.42 11.21 2.21 7.6% 416 Mobile Washers Each mobile washer/year 25.00 29.40 34.58 40.68 15.68 17.6% SUBTOTAL 8,726
SPECIAL USERS (Billed Individually)
Separate Billed Ind/Comm 120 120
Special User Unit Rates
Flow ($ per mgd) 687,000 786,093 899,480 1,029,221 342,221 14.4% BOD ($ per BOD x mgd) 815 936 1,075 1,235 420 14.9%
SS ($ per SS x mgd) 337 476 672 950 613 41.3%
Cust Svc ($ per account) 2.84
SUBTOTAL 120 120
TOTAL 61,074
Proposed Rates Effective
3‐Year Rate Increase
With Equal % Increases
Table 12 ‐ Projected Rates (Rounded)
Average Current
User Category Flow BOD SS Monthly July 1 July 1 July 1 Billing Unit (gpd) (mg/l) (mg/l) Rate 2017 2018 2019

RESIDENTIAL
B. 102/105
107/109 Residential 150 300 300 $15.85 $17.40 $19.15 $21.05 Each living unit

COMMERCIAL/INSTITUTIONAL
A. 001 Business/Government 117 150 150 $10.75 $11.50 $12.35 $13.25 Location /each business C. 102 Transient Occupancy (Resid) 150 300 300 15.85 17.40 19.15 21.05 Each living unit D. 221 Hotel/Motel 66 310 120 6.70 7.20 7.80 8.40 Each room E. 222 Bed & Breakfast Inn 43 310 120 4.45 4.75 5.10 5.45 Each room F. 231 Supermarket 638 800 800 107.00 119.10 132.60 147.60 Location G. 241 Medical Office 156 130 80 13.75 14.60 15.50 16.45 Each licensed phys ician H. 242 Dental Office 215 130 80 18.80 20.00 21.30 22.70 Each licensed denti st I. 243 Rest Home/Convalescent 43 250 100 4.20 4.50 4.80 5.15 Each bed of li censed capacity J. 244 General Hospital 256 250 100 24.70 26.50 28.50 30.60 Each bed of licensed capacity K. 245 Animal Hospital 292 250 100 28.55 30.50 32.65 34.90 Location/each business L. 261 Restaurant–One Meal 6 1000 600 1.05 1.15 1.30 1.40 Each restaurant seat 262 Restaurant–Two Meals 9 1000 600 1.55 1.70 1.90 2.10 Each restaurant seat 263 Restaurant–Three Meals 17 1000 600 3.00 3.30 3.65 4.00 Each restaurant seat M. 264 Restaurant w/Bar 17 1000 600 3.00 3.30 3.65 4.00 Each restaurant seat N. 265 Bar 254 200 200 24.60 26.60 28.70 31.05 Location/each business O. 266 Nightclub 760 200 200 73.05 79.15 85.75 92.85 Location/each business P. 267 Takeout Food–Small 283 500 300 35.65 38.70 41.95 45.55 Location/each business 268 Takeout Food–Medium 697 500 300 87.20 94.85 103.15 112.20 Location/each business 269 Takeout Food–Large 1,270 500 300 159.00 172.90 188.00 204.40 Location/each business Q. 270 Bakery 230 1000 600 41.20 45.15 49.50 54.30 Location/each business R. 281 Theater 377 150 150 33.85 36.55 39.50 42.65 Per screen at each location S. 282 Bowling Center 1,146 150 150 103.00 111.20 120.05 129.60 Location/each business T. 290 Mortuary 310 800 800 52.25 58.05 64.55 71.70 Location/each business U. 291 School (Minimum) 117 150 150 10.75 11.50 12.35 13.25 Each business 292 School (Grades 0‐6) 2 130 100 0.13 0.15 0.18 0.21 School population 293 School (Grade 7‐College) 4 130 100 0.28 0.32 0.37 0.43 School population 294 Boarding School 40 233 165 3.25 3.75 4.30 4.90 School population V. 331 Service Station/Repair 112 180 280 11.20 12.10 13.10 14.15 Location/each business 332 Svc Station/Repair (11‐20) 112 180 280 11.20 12.10 13.10 14.15 Location/each business W. 353 Dry Cleaners 386 150 150 35.05 37.70 40.55 43.65 Location/each business X. 354 Laundromats 102 150 110 9.00 9.70 10.40 11.20 Each washing machine CC. 101 Vacant Residence ‐‐‐ ‐‐‐ ‐‐‐ 9.15 10.45 11.50 12.65 Each living unit 211 Vacant Business ‐‐‐ ‐‐‐ ‐‐‐ 7.90 6.90 7.40 7.95 Each location/each business 416 Mobile Washers (per year) 34 20 150 25.00 29.40 34.60 40.70 Each mobile washer per year SPECIAL USER CHARGE FORMULA ACCOUNTS
Y. 351 Laundry: Industrial Usage Sample Sample
352 Laundry: Commercial Usage 450 240
Z. 366 Car Wash Usage 20 150
AA. 361 Major Hotel Usage 500 600
BB. 367 Truck Wash Usage 180 270
407 Rec/Sports Center Usage 150 150
401‐410 Other Usage Sample Sample
SPECIAL USER CHARGE FORMULA RATES
Flow Charge $687,000 $786,093 $899,480 $1,029,221 $ per mgd BOD Charge 815 936 1,075 1,235 $ per mgd x BOD strength SS Charge 337 476 672 950 $ per mgd x SS strength
Fixed Charge 2.84 ‐‐‐ ‐‐‐ ‐‐‐
SPECIAL USER CHARGE FORMULA
Charge = (Flow Charge x V) + (BOD Charge x V x B) + (SS Charge x V x S) Where: V = Average Daily Sewage Flow in Million Gallons per Day (mgd) B = Average Sewage Biological Oxygen Demand (BOD) Concentration in mg/l C = Average Sewage Suspended Solids (SS) Concentration in mg/l Based on "Special User Charge Formula" *
Proposed MRWPCA Wastewater Treatment Rates
Wastewater Strength Monthly Rate per Unit Effective
"Special User" means any establishment, which cannot be classified in any other category, based on individual flow and strength characteristics. The special user charge is determined based on applying the formula shown below. Actual water usage is ordinarily the basis for the special user's average daily flow.

Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Average Annual CIP Next 9 years $9, 989,292
Table 13
MRWPCA
10‐Year Capital Improvement Program
Project Description Process Area Current $ 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 Total Energy Management Study RTP $400,000 $0 $0 $424,360 $0 $0 $0 $0 $0 $0 $0 $424,360 Master Plan‐ RTP RTP 600,000 0 600,000 0 0 0 0 0 0 0 0 600,000 Master Plan‐ Cogen RTP 250,000 0 250,000 0 0 0 0 0 0 0 0 250,000 Master Plan‐ Pump Stations & Conveyance System Pump Stations 750,000 750,000 0 0 0 0 0 0 0 0 0 750,000 3rd Screw and cover for screws Screwpress 1,250,000 0 0 0 0 0 0 0 1,537,342 0 0 1,537,342 Food Waste & FOG Facility Digesters tbd 0 0 0 0 0 0 0 0 0 0 0 Odor Scrubbers Sta 15 & 13 750,000 0 750,000 0 0 0 0 0 0 0 0 750, 000 Low Pressure Gas System Digester Gas 650,000 0 0 0 710,273 0 0 0 0 0 0 710,273 Liquid Waste Automated Check In Liquid Waste 100,000 0 0 106,090 0 0 0 0 0 0 0 106,090 ‐ GIS General‐ SCADA 50,000 50,000 0 0 0 0 0 0 0 0 0 50,000 ‐ Ops Logging Software (Proj #26) General‐ SCADA 50,000 0 50,000 0 0 0 0 0 0 0 0 50,000 ‐ Online O&M Ph 3 of 3 (Proj 30) General‐ SCADA 75,000 75,000 0 0 0 0 0 0 0 0 0 75,000 ‐ Pump Station Uniform Asset Tagging Project (Proj #4) General‐ SCADA 100,000 0 100,000 0 0 0 0 0 0 0 0 100,000 Scrubber Retrofit to Bioscrubber Thickeners 125,000 0 0 0 136,591 0 0 0 0 0 0 136,591 Headworks Screenings Compactor and Bin Cover Headworks 210,000 0 0 222,789 0 0 0 0 0 0 0 222,789 RTP Screwpress Manhole for Process Control Monitoring Screwpress 150,000 0 0 159,135 0 0 0 0 0 0 0 159,135 Biosolids Storage Hopper Screwpress 800,000 0 0 0 874,182 0 0 0 0 0 0 874,182 Reeside PS Flow Meter Sta 7 25,000 0 0 26,523 0 0 0 0 0 0 0 26,523 Backup Generator Harris Court 30,000 0 0 31,827 0 0 0 0 0 0 0 31, 827 Salinas Pump Station PLC Upgrades (Construction) SAPS 200,000 200 ,000 0 0 0 0 0 0 0 0 0 200,000 ‐ CMMS Implementation (Proj #27) General‐ SCADA 400,000 200,000 2 00,000 0 0 0 0 0 0 0 0 400,000 Moss Landing Pump Station Upgrades MLPS 800,000 50,000 750,000 0 0 0 0 0 0 0 0 800,000 Station Valve Replacement and Additions Sta 13 600,000 600,000 0 0 0 0 0 0 0 0 0 600,000 Monterey PS Drives (Design) MOPS 1,050,000 250,000 800,000 0 0 0 0 0 0 0 0 1,050,000 Land Outfall Permanent Stabilization Outfall 1,560,000 60,000 1, 500,000 0 0 0 0 0 0 0 0 1,560,000 Trickling Filter Area Rehab (Design) Trickling Filter 1,850,000 3 50,000 1,500,000 0 0 0 0 0 0 0 0 1,850,000 Plant Electrical Distribution‐ transfer switch, generators Cogen/RTP 5,267,184 0 0 424,360 5,318,503 0 0 0 0 0 0 5,742,863 Primary Clarifier 5 Influent gates and actuators Primary 5 150,00 0 0 0 159,135 0 0 0 0 0 0 0 159,135 Primary 5 Sludge Lines Cleanouts Primary 5 125,000 125,000 0 0 0 0 0 0 0 0 0 125,000 Access Ramp Rehab, Liner Repair Storm Pond 340,000 0 0 360,706 0 0 0 0 0 0 0 360,706 Headworks Bypass Upgrades Headworks 200,000 0 0 212,180 0 0 0 0 0 0 0 212,180 FOPS Pump Replacement (Low Flow) FOPS 870,000 0 0 922,983 0 0 0 0 0 0 0 922,983 SEPS Pump Replacement SEPS 1,000,000 0 0 0 0 0 0 1,194,052 0 0 0 1,194,052 Grit Removal‐ stop logs Grit Removal 350,000 0 0 371,315 0 0 0 0 0 0 0 371,315 FOPS Backup Controls FOPS 50,000 0 50,000 0 0 0 0 0 0 0 0 50,000 CAPS/FOPS Door Replacement CAPS/FOPS 100,000 0 0 106,090 0 0 0 0 0 0 0 106,090 Pavement Rehab‐ whole facility + repairs at lagoons General 275,0 00 0 0 291,748 0 0 0 0 0 0 0 291,748 Station Valve Replacement and Additions Sta 15 500,000 0 500,000 0 0 0 0 0 0 0 0 500,000 ‐ Control Room Remodel (Proj #8) General ‐ SCADA 120,000 0 120,00 0 0 0 0 0 0 0 0 0 120,000 Trickling Filter Odor Scrubber Demo Trickling Filter 50,000 0 50, 000 0 0 0 0 0 0 0 0 50,000 Marina Drives MAPS 130,000 0 0 137,917 0 0 0 0 0 0 0 137,917 Ceiling Cogen Bldg 100,000 0 0 106,090 0 0 0 0 0 0 0 106,090 Seaside Pump Station Electrical Upgrades SEPS 2,000,000 0 0 0 2,1 85,454 0 0 0 0 0 0 2,185,454 Fort Ord Pump Station Electrical Upgrades FOPS 2,000,000 0 0 2,121,800 0 0 0 0 0 0 0 2,121,800 DAFT Center Column & VFD Thickeners 200,000 0 200,000 0 0 0 0 0 0 0 0 200,000 Headworks Influent Sluice Gate Actuators & Gates Headworks 60,000 0 60,000 0 0 0 0 0 0 0 0 60,000 Projected Cost with 3% Cost Escalation
A-16
Average Annual CIP Next 9 years $9, 989,292
Table 13
MRWPCA
10‐Year Capital Improvement Program
Project Description Process Area Current $ 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 Total Projected Cost with 3% Cost Escalation
SEPS Concrete Corrosion Rehab SEPS 225,000 0 0 0 245,864 0 0 0 0 0 0 245,864 Headworks Area Rehab‐ Electrical Headworks 1,000,000 0 0 1,060,90 0 0 0 0 0 0 0 0 1,060,900 Digester Area Rehab‐ Electrical & Digester #1 Rehab Digesters 750 ,000 0 0 795,675 0 0 0 0 0 0 0 795,675 FOPS Roof Replacement FOPS 50,000 0 50,000 0 0 0 0 0 0 0 0 50,000 Primary Clarifiers‐ scum pumps Primaries 152,000 0 0 161,257 0 0 0 0 0 0 0 161,257 Cogen Compressor Cogen 1,000,000 0 0 0 0 0 0 1,194,052 0 0 0 1,19 4,052 Coral St Dry Side Pump Replacement Sta 15 100,000 0 100,000 0 0 0 0 0 0 0 0 100,000 Marina Pump Station‐ Generator with AST & UST Removal MAPS 255,000 0 0 0 0 287,005 0 0 0 0 0 287,005 Relocation of Station 15 Sta 15 24,000,000 0 0 0 0 0 0 0 9,838,99 1 10,134,161 10,438,185 30,411,337 Mixed Liquor Distribution Structure Gates and Valves Secondaries 119,000 0 0 0 130,035 0 0 0 0 0 0 130,035 Monterey PS Pumps MOPS 1,500,000 0 0 0 0 1,688,263 0 0 0 0 0 1,688,263 Seismic Upgrades RTP 475,000 0 200,000 291,748 0 0 0 0 0 0 0 491, 748 Headworks Grit Bin Drain Headworks 50,000 0 50,000 0 0 0 0 0 0 0 0 50,000 Class C Pump Station Redesign Class C PS 2,000,000 0 2,000,000 0 0 0 0 0 0 0 0 2,000,000 Trickling Filter Mechanisms & Domes #1 & 2 Trickling Filter 6,620 ,000 0 0 0 0 7,450,868 0 0 0 0 0 7,450,868 Trickling Filter Mechanisms & Domes #3 & 4 Trickling Filter 6,620 ,000 0 0 0 0 0 0 7,904,626 0 0 0 7,904,626 Trickling Filter Mechanisms & Domes #5 & 6 Trickling Filter 6,620 ,000 0 0 0 0 0 7,674,394 0 0 0 0 7,674,394 Liquid Waste Facility Upgrades (design) Liquid Waste 250,000 0 0 265,225 0 0 0 0 0 0 0 265,225 Lighting Retrofit Harris Court 50,000 0 0 53,045 0 0 0 0 0 0 0 53 ,045 Trickling Filter Influent and Effluent Gates Trickling Filter 1,2 50,000 0 0 0 0 0 1,449,093 0 0 0 0 1,449,093 furnishings, carpet Harris Court 125,000 0 0 132,613 0 0 0 0 0 0 0 132,613 Carpets, Lab Layout, furnishings RTP Admin 250,000 0 0 265,225 0 0 0 0 0 0 0 265,225 Belt Press Building Replacement Belt Press 80,000 0 0 84,872 0 0 0 0 0 0 0 84,872 Shop Upgrades Maint Bldg 100,000 0 0 106,090 0 0 0 0 0 0 0 106,09 0 Primary Launders Concrete Repairs Primaries 150,000 0 150,000 0 0 0 0 0 0 0 0 150,000 Digesters Concrete Repairs Digesters 80,000 0 80,000 0 0 0 0 0 0 0 0 80,000 Total 80,583,184 2,710,000 10,110,000 9,401,696 9,600,900 9,426,136 9,123,487 10,292,731 11,376,333 10,134,161 10,438,185 92,613,630 A-17
APPENDIX B
Capacity Charge Update Tables
Monterey Regional Water
Pollution Control Agency
Capacity Charge Update

Table 1
MRWPCA Capacity Charge Update
Fixed Asset Cost Allocation
ENR‐Adjusted
Location 1 Location 2 Cost Basis Admin/Gen'l Flow BOD SS Total Admin/G en'l Flow BOD SS Total Administration 90 8,456,404 100% 0% 0% 0% 100% 8,456,40 4000 8 , 4 5 6 , 4 0 4 Pump Stations 1 ‐ 30 133,934,531 0% 100% 0% 0% 100% 0 133,934,531 0 0 133,934,531 Regional Treatment Plant 80
Control Room 80009 3,117 5% 35% 25% 35% 100% 156 1,091 779 1,091 3,117 Administration 80010 5,534,145 85% 5% 5% 5% 100% 4,704,024 276,707 276,707 276,707 5,534,145 New RTP Admin Bldg 80011 6,097,478 25% 40% 10% 25% 100% 1,524, 370 2,438,991 609,748 1,524,370 6,09 7,478 Lab 80012 446,472 5% 0% 60% 35% 100% 22,324 0 267,883 156,265 446,472 RTP Main Phone Room 80013 79,819 25% 25% 25% 25% 100% 19,955 19,955 19,955 19,955 79,819 RTP Lunch Room 80015 438,350 25% 25% 25% 25% 100% 109,588 109,588 109,588 109,588 438,350 Maintenance 80020 3,485,285 5% 45% 20% 30% 100% 174,264 1, 568,378 697,057 1,045,585 3,485,2 85 Modular Office Trailer 80025 29,166 25% 25% 25% 25% 100% 7,292 7,292 7,292 7,292 29,166 Old Vehicle Storage/Auto Shop 80030 1,447,010 5% 30% 25% 40% 100% 72,351 434,103 361,753 578,804 1,447,010 Cogen Building 80039 734,150 5% 0% 40% 55% 100% 36,708 0 293,660 403,783 734,150 Power Generation 80040 17,359,905 5% 0% 40% 55% 100% 867,995 0 6,943,962 9,547,948 17,359,905 Fire Pump Building (near Cogen) 80041 3,298 70% 0% 15% 15% 100% 2,309 0 495 495 3,298 Chemical 80050 3,148,813 0% 5% 5% 90% 100% 0 157,441 157,441 2,833,932 3,148,813 GWR Demonstration Facility 80051 360,254 100% 0% 0% 0% 100% 360,25 4000 3 6 0 , 2 5 4 Trickling Filter Pump Station 80060 7,464,020 0% 0% 100% 0% 100% 0 0 7,464,020 0 7,464,020 Trickling Filter Electrical Building 80061 53,118 0% 0% 100% 0% 100% 0 0 53,118 0 53,118 Digester Control Building 80070 7,689,281 0% 0% 10% 90% 100% 0 0 7 68,928 6,920,353 7,689,281 Digester Electrical Building 80071 333,945 0% 0% 10% 90% 100% 0 0 33,395 300,551 333,945 Digesters 80072 499,703 0% 0% 10% 90% 100% 0 0 49,970 449,733 499,703 Brine Pond 80075 237,260 0% 100% 0% 0% 100% 0 237,260 0 0 237,260 Headworks Electrical 80080 872,478 5% 15% 15% 65% 100% 43,624 130,872 130,872 567,111 872,478 Bioflocculation Area 80089 6,043 0% 0% 55% 45% 100% 0 0 3,324 2,719 6,043 Bioflocculation Blower 80090 3,712,457 0% 0% 55% 45% 100% 0 0 2,0 41,851 1,670,606 3,712,457 Headworks 80100 11,850,924 0% 50% 5% 45% 100% 0 5,925,462 592,546 5,332,916 11,850,924 Headworks Bypass 80101 1,092,489 0% 100% 0% 0% 100% 0 1,092,489 0 0 1,092,489 Primary Clarifiers Pump Pit 80110 383,725 0% 0% 20% 80% 100% 0 0 76,745 306,980 383,725 Primary Clarifier #1 80111 1,858,135 0% 0% 20% 80% 100% 0 0 3 71,627 1,486,508 1,858,135 Primary Clarifier #2 80112 1,824,069 0% 0% 20% 80% 100% 0 0 3 64,814 1,459,255 1,824,069 Primary Clarifier #3 80113 1,709,912 0% 0% 20% 80% 100% 0 0 3 41,982 1,367,930 1,709,912 Primary Clarifier #4 80114 1,715,313 0% 0% 20% 80% 100% 0 0 3 43,063 1,372,250 1,715,313 Primary Clarifier #5 80115 2,075,643 0% 0% 20% 80% 100% 0 0 4 15,129 1,660,514 2,075,643 Scum Hopper/Dewater 80116 144,307 0% 0% 0% 100% 100% 0 0 0 144,307 144,307 Belt Press Building 80117 76,341 0% 34% 33% 33% 100% 0 25,956 25,193 25,193 76,341 Screw Press Building 80118 7,284,139 0% 0% 10% 90% 100% 0 0 7 28,414 6,555,725 7,284,139 SCADA 80119 4,849 15% 45% 20% 20% 100% 727 2,182 970 970 4,849 Primary Sludge Pump Station 80120 6,005,167 0% 0% 20% 80% 100% 0 0 1,2 01,033 4,804,134 6,005,167 Class C Water Pump Station 80121 40,889 0% 0% 34% 66% 100% 0 0 13,902 26,987 40,889 Trickling Filter Tower 1,2,3 80131 12,982,198 0% 0% 100% 0% 100% 0 0 12,982,198 0 12,982,198 Trickling Filter Tower 4,5,6 80132 12,901,979 0% 0% 100% 0% 100% 0 0 12,901,979 0 12,901,979 Secondary Clarifiers Pump Pit 80140 13,139 0% 0% 34% 66% 100% 0 0 4,467 8,672 13,139 Secondary Clarifier #1 80141 1,513,320 0% 5% 35% 60% 100% 0 75,666 529,662 907,992 1,513,320 Secondary Clarifier #2 80142 1,513,320 0% 5% 35% 60% 100% 0 75,666 529,662 907,992 1,513,320 Secondary Clarifier #3 80143 1,521,404 0% 5% 35% 60% 100% 0 76,070 532,491 912,842 1,521,404 Secondary Clarifier #4 80144 1,513,318 0% 5% 35% 60% 100% 0 75,666 529,661 907,991 1,513,318 Secondary Clarifier #5 80145 1,513,318 0% 5% 35% 60% 100% 0 75,666 529,661 907,991 1,513,318 Secondary Clarifier #6 80146 1,498,178 0% 5% 35% 60% 100% 0 74,909 524,362 898,907 1,498,178 Secondary Flow Distribution 80150 6,136,395 0% 50% 15% 35% 100% 0 3,068,197 920,459 2,147,738 6,136,395 Secondary Effluent Rapid Mix 80160 1,287,188 0% 80% 10% 10% 100% 0 1,029,750 128,719 128,719 1,287,188 CL2 Injection Water Pump Station 80170 825,908 0% 0% 50% 50% 100% 0 0 412,954 412,954 825,908 Outfall Junction 80180 2,081 0% 100% 0% 0% 100% 0 2,081 0 0 2,081 Recycle Sump #2 ‐ East 80191 231,095 0% 10% 20% 70% 100% 0 23,110 46,219 161,767 231,095 Recycle Sump #2 ‐ West 80192 236,197 0% 20% 40% 40% 100% 0 47,239 94,479 94,479 236,197 Daft Area 80200 29,468 0% 5% 40% 55% 100% 0 1,473 11,787 16,207 29,468 Gravity Thickener/Daft #2 80201 1,823,920 0% 5% 30% 65% 100% 0 91,196 547,176 1,185,548 1,823,920 Daft Thickener #3 80202 1,928,605 0% 5% 55% 40% 100% 0 96,430 1,060,733 771,442 1,928,605 Anaerobic Digester #1 80203 398,556 0% 5% 40% 55% 100% 0 19,928 159,422 219,206 398,556 Anaerobic Digester #2 80211 2,828,177 0% 5% 40% 55% 100% 0 141,409 1,131,271 1,555,498 2,828,177 Anaerobic Digester #3 80212 3,865,511 0% 5% 40% 55% 100% 0 193,276 1,546,204 2,126,031 3,865,511 Anaerobic Digester #4 80213 4,200,937 0% 5% 40% 55% 100% 0 210,047 1,680,375 2,310,515 4,200,937 Anaerobic Digester #1 80214 2,848,188 0% 5% 40% 55% 100% 0 142,409 1,139,275 1,566,504 2,848,188 Sludge Lagoons 80220 2,682,387 0% 0% 40% 60% 100% 0 0 1,0 72,955 1,609,432 2,682,387 Drying Beds 80221 11,276,083 0% 0% 40% 60% 100% 0 0 4,510,433 6,765,650 11,276,083 Odor Control Systems 80230 1,422,209 10% 0% 80% 10% 100% 142,221 0 1,137,767 142,221 1,422,209 Chlorine Contact Tank 80240 00000
Bioflocculation Basin #1 80251 3,017,877 5% 10% 45% 40% 100% 150,894 301 ,788 1,358,045 1,207,151 3,017,8 77 Bioflocculation Basin #2 80252 3,017,877 5% 10% 45% 40% 100% 150,894 301 ,788 1,358,045 1,207,151 3,017,8 77 Bioflocculation Basin #3 80253 3,017,872 5% 10% 45% 40% 100% 150,894 301 ,787 1,358,043 1,207,149 3,017,8 72 Influent Junction 80260 84,222 0% 100% 0% 0% 100% 0 84,222 0 0 84,222 Thickened Sludge Pump Station 80280 2,972,791 0% 5% 40% 55% 100% 0 148,640 1,189,117 1,635,035 2,972,791 Storm Retention Pond 80290 596,683 0% 100% 0% 0% 100% 0 596,683 0 0 596,683 Low Pressure Gas Storage Tank 80301 66,922 0% 0% 45% 55% 100% 0 0 30,115 36,807 66,922 High Pressure Gas Storage Tank 80302 674,853 0% 0% 45% 55% 100% 0 0 303,684 371,169 674,853 Truck Scale 80310 12,439 0% 40% 25% 35% 100% 0 4,975 3,110 4,353 12,439 Liquid Waste Receiving 80315 257,760 0% 40% 25% 35% 100% 0 103,104 64,440 90,216 257,760 Primary Influent Structure 80320 5,386,560 0% 40% 25% 35% 100% 0 2,154,6 24 1,346,640 1,885,296 5,386,560 New Veh Steel ‐ OPS Storage 80330 630,253 5% 30% 25% 40% 100% 31,513 189,076 157,563 252,101 630,253 Gasoline Fuel Tank/Pump Dispenser 80340 605,019 0% 80% 10% 10% 100% 0 484,015 60,502 60,502 605,019 Diesel Fuel Tank/Pump Dispenser 80341 174,406 15% 50% 15% 20% 100% 26,161 87,203 26,161 34,881 174,406 Waste Gas Burner 80350 40,445 0% 5% 45% 50% 100% 0 2,022 18,200 20,223 40,445 Site Throughout 80990 97,798,661 0% 40% 25% 35% 100% 0 39,119 ,464 24,449,665 34,229,531 97,798, 661 Other Treatment Plant Assets 7,019,518 0% 40% 25% 35% 100% 0 2,807,807 1 ,754,880 2,456,831 7,019,518 Outfall Diffuser Port Works 80999 2,335,831 0% 100% 0% 0% 100% 0 2,335,831 0 0 2,335,831____________ _______ _______ _______ _______ _______ ____________ ____________ ____________ ____________ ____________ Subtotal 300,804,539 2.9% 22.3% 34.2% 40.7% 100% 8,598,513 66,970,982 10 2,909,796 122,325,247 300,804,539 Portible Equipment 888 879,082 0.0% 100.0% 0.0% 0.0% 100.0% 0 879,082 0 0 879,082 Total 444,074,555 3.8% 45.4% 23.2% 27.5% 100.0% 17,054,917 201,784,594 102,90 9,796 122,325,247 444,074,555 Facility Cost Allocation % Facility Cost Allocation %
B-1
Table 2
MRWPCA Capacity Charge Update
10‐Year CIP Cost Allocation
10‐Year CIP
Project Description Process Area
FY17‐26
(Current $)
Rehab &
Replacement
Upgrade &
Expansion
Rehab &
Replacement
Upgrade &
Expansion
Energy Management Study RTP $400,000 0% 100% $0 $400,000 Master Plan‐ RTP RTP 600,000 0% 100% 0 600,000
Master Plan‐ Cogen RTP 250,000 0% 100% 0 250,000
Master Plan‐ Pump Stations & Conveyance System Pump Stations 750,000 0% 100% 0 750,000 3rd Screw and cover for screws Screwpress 1,250,000 0% 100% 0 1,250,000 Food Waste & FOG Facility Digesters 0 0% 100% 0 0
Odor Scrubbers Sta 15 & 13 750,000 0% 100% 0 750,000
Low Pressure Gas System Digester Gas 650,000 0% 100% 0 650,000 Liquid Waste Automated Check In Liquid Waste 100,000 0% 100% 0 100,000 ‐ GIS General‐ SCADA 50,000 0% 100% 0 50,000
‐ Ops Logging Software (Proj #26) General‐ SCADA 50,000 0% 100% 0 50,000 ‐ Online O&M Ph 3 of 3 (Proj 30) General‐ SCADA 75,000 0% 100% 0 75,000 ‐ Pump Station Uniform Asset Tagging Project (Proj #4) General‐ SCADA 100,000 0% 100% 0 100,000 Scrubber Retrofit to Bioscrubber Thickeners 125,000 0% 100% 0 125,000 Headworks Screenings Compactor and Bin Cover Headworks 210,000 0% 100% 0 210,000 RTP Screwpress Manhole for Process Control Monitoring Screwpress 150,000 0% 100% 0 150,000 Biosolids Storage Hopper Screwpress 800,000 0% 100% 0 800,000 Reeside PS Flow Meter Sta 7 25,000 0% 100% 0 25,000
Backup Generator Harris Court 30,000 0% 100% 0 30,000 Salinas Pump Station PLC Upgrades (Construction) SAPS 200,000 0% 100% 0 200,000 ‐ CMMS Implementation (Proj #27) General‐ SCADA 400,000 0% 100% 0 400,000 Moss Landing Pump Station Upgrades MLPS 800,000 0% 100% 0 800,000 Station Valve Replacement and Additions Sta 13 600,000 40% 60% 240,000 360,000 Monterey PS Drives (Design) MOPS 1,050,000 100% 0% 1,050,000 0 Land Outfall Permanent Stabilization Outfall 1,560,000 0% 100% 0 1,560,000 Trickling Filter Area Rehab (Design) Trickling Filter 1,850,000 1 00% 0% 1,850,000 0 Plant Electrical Distribution‐ transfer switch, generators Cogen/RTP 5,267,184 100% 0% 5,267,184 0 Primary Clarifier 5 Influent gates and actuators Primary 5 150,000 100% 0% 150,000 0 Primary 5 Sludge Lines Cleanouts Primary 5 125,000 0% 100% 0 125,000 Access Ramp Rehab, Liner Repair Storm Pond 340,000 100% 0% 340,000 0 Cost Allocation % Cost Allocation $
B-2
Table 2
MRWPCA Capacity Charge Update
10‐Year CIP Cost Allocation
10‐Year CIP
Project Description Process Area
FY17‐26
(Current $)
Rehab &
Replacement
Upgrade &
Expansion
Rehab &
Replacement
Upgrade &
Expansion
Cost Allocation % Cost Allocation $
Headworks Bypass Upgrades Headworks 200,000 0% 100% 0 200,000 FOPS Pump Replacement (Low Flow) FOPS 870,000 100% 0% 870,000 0 SEPS Pump Replacement SEPS 1,000,000 100% 0% 1,000,000 0 Grit Removal‐ stop logs Grit Removal 350,000 100% 0% 350,000 0 FOPS Backup Controls FOPS 50,000 0% 100% 0 50,000
CAPS/FOPS Door Replacement CAPS/FOPS 100,000 100% 0% 100,000 0 Pavement Rehab‐ whole facility + repairs at lagoons General 275,0 00 100% 0% 275,000 0 Station Valve Replacement and Additions Sta 15 500,000 40% 60% 200,000 300,000 ‐ Control Room Remodel (Proj #8) General ‐ SCADA 120,000 0% 100% 0 120,000 Trickling Filter Odor Scrubber Demo Trickling Filter 50,000 0% 100% 0 50,000 Marina Drives MAPS 130,000 100% 0% 130,000 0
Ceiling Cogen Bldg 100,000 100% 0% 100,000 0
Seaside Pump Station Electrical Upgrades SEPS 2,000,000 50% 50% 1,000,000 1,000,000 Fort Ord Pump Station Electrical Upgrades FOPS 2,000,000 50% 50% 1,000,000 1,000,000 DAFT Center Column & VFD Thickeners 200,000 50% 50% 100,000 100,000 Headworks Influent Sluice Gate Actuators & Gates Headworks 60,000 100% 0% 60,000 0 SEPS Concrete Corrosion Rehab SEPS 225,000 100% 0% 225,000 0 Headworks Area Rehab‐ Electrical Headworks 1,000,000 100% 0% 1,000,000 0 Digester Area Rehab‐ Electrical & Digester #1 Rehab Digesters 750 ,000 100% 0% 750,000 0 FOPS Roof Replacement FOPS 50,000 100% 0% 50,000 0
Primary Clarifiers‐ scum pumps Primaries 152,000 100% 0% 152,000 0 Cogen Compressor Cogen 1,000,000 100% 0% 1,000,000 0
Coral St Dry Side Pump Replacement Sta 15 100,000 100% 0% 100,000 0 Marina Pump Station‐ Generator with AST & UST Removal MAPS 255,000 0% 100% 0 255,000 Relocation of Station 15 Sta 15 24,000,000 100% 0% 24,000,000 0 Mixed Liquor Distribution Structure Gates and Valves Secondaries 119,000 100% 0% 119,000 0 Monterey PS Pumps MOPS 1,500,000 100% 0% 1,500,000 0
Seismic Upgrades RTP 475,000 0% 100% 0 475,000
Headworks Grit Bin Drain Headworks 50,000 100% 0% 50,000 0 Class C Pump Station Redesign Class C PS 2,000,000 0% 100% 0 2,000,000 B-3
Table 2
MRWPCA Capacity Charge Update
10‐Year CIP Cost Allocation
10‐Year CIP
Project Description Process Area
FY17‐26
(Current $)
Rehab &
Replacement
Upgrade &
Expansion
Rehab &
Replacement
Upgrade &
Expansion
Cost Allocation % Cost Allocation $
Trickling Filter Mechanisms & Domes #1 & 2 Trickling Filter 6,620 ,000 100% 0% 6,620,000 0 Trickling Filter Mechanisms & Domes #3 & 4 Trickling Filter 6,620 ,000 100% 0% 6,620,000 0 Trickling Filter Mechanisms & Domes #5 & 6 Trickling Filter 6,620 ,000 100% 0% 6,620,000 0 Liquid Waste Facility Upgrades (design) Liquid Waste 250,000 0% 100% 0 250,000 Lighting Retrofit Harris Court 50,000 0% 100% 0 50,000 Trickling Filter Influent and Effluent Gates Trickling Filter 1,250,000 100% 0% 1,250,000 0 furnishings, carpet Harris Court 125,000 100% 0% 125,000 0 Carpets, Lab Layout, furnishings RTP Admin 250,000 100% 0% 250,000 0 Belt Press Building Replacement Belt Press 80,000 100% 0% 80,000 0 Shop Upgrades Maint Bldg 100,000 0% 100% 0 100,000
Primary Launders Concrete Repairs Primaries 150,000 100% 0% 150,000 0 Digesters Concrete Repairs Digesters 80,000 100% 0% 80,000 0 Total 80,583,184 80.4% 19.6% 64,823,184 15,760,000
Cost allocation by MRWPCA Engineering Supervisor.

Salinas City CouncilSeptember 23, 2025

Salinas City Council
September 23, 2025