Cities Index.
Agenda Packet

Salinas City Council
December 9, 2025

Document
Agenda Packet
Meeting
December 9, 2025
Body
Salinas City Council
Pages
45
Original file
37.3 MB
Text extracted from the city's file for reading and search. Open the original on salinas.legistar.com. That file is the official record.

Tuesday, December 9, 2025
3:00 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

December 9, 2025City Council Meeting Agenda - Final

ZOOM WEBINAR PARTICIPATION
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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#25-582
a. Existing Litigation - California Government Code Section 54956.9, conference with legal counsel regarding, Kenneth Schwenner vs. City of Salinas, Workers’ Compensation Appeals Board Case Number(s): ADJ15503438, ADJ16030593, and ADJ15263758.
b. Existing Litigation - California Government Code Section 54956.9, conference with legal counsel regarding, Derek Gibson vs. City of Salinas, Workers’ Compensation Appeals Board Case Number(s): ADJ18046725, ADJ18046726, and ADJ17423883.

THE CITY COUNCIL WILL RECONVENE IN THE ROTUNDA AT 3:30 P.M.

CITY OF CHAMPIONS
One Brotherhood Motorcycle Club

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

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December 9, 2025City Council Meeting Agenda - Final
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).

PUBLIC HEARINGS
ID#25-559
Public Hearing to Consider the Disestablishment of the Salinas United Business Association Business Improvement Area
Recommendation: Approve a Resolution to disestablish the Salinas United Business Association Business Improvement Area pursuant to Streets and Highways Code Sections 36550 and 36551 and directing an ordinance be prepared to repeal Salinas City Municipal Code Chapter 21B Article V.

ID#25-539
Zoning Code Amendment 2025-001; Rescind Section 37-50.250 (Accessory Dwelling Units) of Chapter 37 of the Salinas Municipal Code (Zoning Code), remove and modify applicable Zoning Code Accessory Dwelling Unit (ADU) definitions and development regulations and apply applicable State ADU law for the processing of ADU applications
Recommendation:

Consider finding Zoning Code Amendment 2025-001 categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15305; and adopt an Ordinance to comply amending Chapter 37 of the Salinas Municipal Code (Zoning Code) to rescind Section 37-50.250 (Accessory Dwelling Units), remove and modify Accessory Dwelling Unit (ADU) definitions of Section 37-10.250 ("A" definitions), modify the ADU development regulations of Sections 37-30.020, 37-30-060, 37-30-110, 37-30.160, 37-30.390, and 37-30.430, and apply applicable State ADU Law to process ADU applications.

CONSIDERATION
ID#25-580
City Manager Employment Agreement Amendment No. 1
Recommendation: Approve a Resolution authorizing the Mayor to sign an Amendment to the Employment Agreement with the Salinas City Manager Rene L. Mendez and adjust the Classification - Salary Schedule, effective December 22, 2025.

ID#25-581
Salinas Police Officers Association and Police Managers Association Memoranda of Understanding; Modification to Classification - Salary Schedule

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December 9, 2025City Council Meeting Agenda - Final
Recommendation: Approve a Resolution authorizing the City Manager to sign the Memoranda of Understanding (MOU) with the Salinas Police Officers Association (SPOA) and the Police Managers Association (PMA) for terms ending December 31, 2027, and December 31, 2028, respectively, and approving modification to the Classification - Salary Schedule.

ID#25-558
Establishment of 2026 Residential Rental Registration and Rent Stabilization Program Fees, Revenue and Expenditures
Recommendation: Approve Resolution(s) amending Rental Registry Fees established by Resolution No. 23170 (N.C.S.) to be $29.00 effective January 1, 2026, and integrating the new fee amount into the City's Schedule of Fees and Charges for City Services; amending Rent Program Fees established by Resolution No. 23169 (N.C.S.) to be $112.00 effective January 1, 2026, and integrating the new fee amount into the City's Schedule of Fees and Charges; and establishing the appropriation for 2026 Rental Registration and Rent Stabilization Program revenue and expenditures in the amount of one million one hundred twenty-eight thousand eight hundred fifty-one dollars ($1,128,851).

ADMINISTRATIVE REPORTS
ID#25-564
Housing Production Dashboard Update
Recommendation: No action is required. Receive an Administrative Report on Housing Production Dashboard development.

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#25-583
Minutes
Recommendation: Approve minutes of December 2, 2025.

ID#25-258 Master Service Agreements with Citiguard, Inc., Saferock, and 786 Hastraut Inc, dba 247 Private Security for Uniform Security Guard Services Recommendation: Approve a Resolution authorizing the City Manager to enter into master service agreements with Citiguard Inc; SafeRock; and 786 Hastrust Inc, dba 247 Private Security, to provide uniform security guard services at City facilities each with an initial term of two years, with up to three additional one-year renewal options, and in an amount to not exceed $400,000 annually.

ID#25-485
Fire Apparatus Purchase and Lease Financing
Recommendation: Approve a Resolution authorizing the direct purchase and/or lease financing of two (2) Type 1 Fire Engines, one (1) Tiller Ladder Truck, and one (1) BME Type 6 Wildland Engine from Golden State Fire Apparatus, Inc, including all associated equipment, installation, and performance bonds, in an amount of $5,404,476.31 and a 5% contingency ($270,223.82), excluding financing costs; authorizing the use of proceeds from a sale of City surplus property located at 342 Front Street and 323 California Street to fund a portion of the fire apparatus purchases; and authorizing the City Manager to execute agreements all related purchase agreements, lease-purchase or financing documents, and any necessary amendments to or change orders required to complete the purchase.

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December 9, 2025City Council Meeting Agenda - Final
ID#25-493 Treasurer’s Report - Quarter Ended September 30, 2025 Recommendation: Accept the Treasurer's Report for FY 2025-26 first quarter ended September 30, 2025.

ID#25-548 California Library Literacy Services Adult and Family Literacy Grant Award Recommendation: Approve a Resolution accepting the California Library Literacy Services (CLLS) block grant award in support of Adult Literacy and Family Literacy, for a total award of $231,508 and authorizing the establishment of the CLLS - Adult and Family Literacy fund appropriation totaling $231,508 and corresponding revenue budget to support grant activities; and authorizing the City Manager to execute all grant acceptance documents with the California State Library.

ID#25-551
Modifications to Biological Resource Mitigation Measures for West Area Specific Plan (WASP Mitigation Measures 3.2-1 through 3.2-4 and 3.2-7) Recommendation: Approve a Resolution amending the Mitigation Monitoring and Reporting Program ("MMRP") for the West Area Specific Plan ("WASP") to make modifications to mitigation measures for potential impacts to the California tiger salamander ("CTS"), the California red-legged frog ("CRLF"), and irrigation ditches and roadside ditches potentially subject to federal or state regulatory jurisdiction.

ID#25-552
Ratification of the Emergency Purchase of Demolition Services and Authorization to Execute an Agreement for Services with Randazzo Enterprises, Inc. for the Demolition of 34, 36, and 38 Soledad Street Recommendation:

Approve a Resolution ratifying the emergency purchase of demolition services from Randazzo Enterprises, Inc. for the demolition 34, 36, and 38 Soledad Street; and authorizing the City Manager to execute an Agreement for Services with Randazzo Enterprises, Inc. for emergency demolition of 34, 36, and 38 Soledad Street for a total compensation amount not to exceed $327,109 from October 17, 2025 to December 31, 2025.

ID#25-555
Agreement with Santa Clara Stadium Authority and the City of Santa Clara Recommendation: Approve a Resolution authorizing the City Manager to execute a Municipal Law Enforcement Services Agreement with Santa Clara Stadium Authority and the City of Santa Clara for the performance of supplemental special detail law enforcement services during periodic major events at the Santa Clara Stadium site.

ID#25-556
Annual Subscription with SoundThink, Inc. For ShotSpotter Service Recommendation: Approve a Resolution authorizing the Purchasing Agent to execute a renewal subscription with SoundThinking, Inc. for ShotSpotter annual service for the period December 14, 2025 through December 13, 2026, and increase the current Agreement total by $490,000 for a revised not to exceed total of $1,470,000.

ID#25-562
Project Acceptance of the North Main Street and Lamar Street Pedestrian Improvements, CIP No. 9362
Recommendation: Approve a Resolution accepting the North Main Street and Lamar Street Pedestrian Improvements, CIP No. 9362 for maintenance and responsibility.

ID#25-566 Hebbron Family Center Construction Contingency Increase

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December 9, 2025City Council Meeting Agenda - Final
Recommendation: Approve a Resolution increasing the construction contingency from $250,000 to $450,000 for the Hebbron Family Center Design-Build contract for a total contract not to exceed amount of $11,029,600 and authorizing the Public Works Director to execute any and all contract change orders related to this project.

ID#25-570
Acceptance of the Natividad Creek Park Restroom Rehabilitation Project, CIP No. 9346
Recommendation: Approve a Resolution accepting the Natividad Creek Park Restroom Rehabilitation Project, CIP No. 9346, for maintenance and responsibility.

ID#25-571 Award of Bids for the Sherwood Recreation Center Building Improvement, CIP 9535
Recommendation: Approve a Resolution approving the Plans and Specifications for the Sherwood Recreation Center Building Improvement, CIP 9535; awarding a contract to Precision Construction Services for the Sherwood Recreation Center Building Improvement, CIP 9535, in an amount not to exceed $2,230,401; approving construction contingencies allowance for contract change orders up to an additional $450,000; and appropriating $3,060,401 from Community Development Block Grants (CDBG) funds to CIP 9535.

ID#25-573
Amendment to Agreement for Services with Bear Electrical Solutions (BES) Recommendation: Approve a Resolution approving Amendment No. 3 to Agreement for Services between the City of Salinas and Bear Electrical Solutions (BES) extending the term of the agreement through to December 31, 2027, and including a "not to exceed" amount of $4,320,000 for the contract established in 2018.

ID#25-577
Side Letter Agreement with Association of Management Personnel of Salinas (AMPS) and the City of Salinas
Recommendation: Approve a Resolution authorizing the City Manager to execute and implement a Side Letter Agreement with the Association of Management Personnel of Salinas (AMPS) adding a provision to the Memorandum of Understanding to include a canine premium for a wellness dog handler of five percent (5%) to base pay effective November 12, 2025.

ID#25-578
Modification to the Classification - Salary Schedule and Workforce Allocation Adjustment
Recommendation: Approve a Resolution to amend the Classification-Salary Schedule to adjust the temporary employee hourly rates to comply with the state minimum wage pursuant to SB 3, approved April 4, 2016; approve previously authorized salary adjustments for Confidential Non-Management, Confidential Management, and Department Directors; add the classification and salary of Chief of Planning to the Classification - Salary Schedule; adjust the Classification - Salary Schedule to reflect the correct monthly rates for the Permit Services Technician and Plan Checker I classifications; and adjust the authorized workforce for the Library and Community Services Department by unfreezing the Recreation Assistant and adjusting the workforce to reflect one additional position effective January 1, 2026.

ID#25-579
Grievance Board Appointments
Recommendation: Approve a Resolution appointing Manuel (Manny) T. Gonzalez and Richard Soratos to the City of Salinas Grievance Board.

COUNCILMEMBERS’ REPORTS, APPOINTMENTS AND FUTURE AGENDA ITEMS

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December 9, 2025City Council Meeting Agenda - Final
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, 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 December 5, 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#25-582, Version: 1
a. Existing Litigation - California Government Code Section 54956.9, conference with legal counsel regarding, Kenneth Schwenner vs. City of Salinas, Workers’ Compensation Appeals Board Case Number(s):

ADJ15503438, ADJ16030593, and ADJ15263758.
b. Existing Litigation - California Government Code Section 54956.9, conference with legal counsel regarding, Derek Gibson vs. City of Salinas, Workers’ Compensation Appeals Board Case Number(s):

ADJ18046725, ADJ18046726, and ADJ17423883.

City of Salinas Printed on 12/5/2025Page 1 of 1
powered by Legistar™
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-559, Version: 1
Public Hearing to Consider the Disestablishment of the Salinas United Business Association Business Improvement Area
Approve a Resolution to disestablish the Salinas United Business Association Business Improvement Area pursuant to Streets and Highways Code Sections 36550 and 36551 and directing an ordinance be prepared to repeal Salinas City Municipal Code Chapter 21B Article V.

City of Salinas Printed on 12/5/2025Page 1 of 1
powered by Legistar™

Page | 1

CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: DECEMBER 9, 2025
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: LISA BRINTON, DIRECTOR
BY: CRYSTAL CASILLAS, BUSINESS NAVIGATOR
TITLE: PUBLIC HEARING TO CONSIDER THE DISESTABLISHMENT

OF THE SALINAS UNITED BUSINESS ASSOCIATION BUSINESS

IMPROVEMENT AREA

RECOMMENDED MOTION:

A motion to approve a resolution to disestablish the Salinas United Business Association Business Improvement Area pursuant to Streets and Highways Code Sections 36550 and 36551 and directing an ordinance be prepared to repeal Salinas City Municipal Code Chapter 21B Article V.

EXECUTIVE SUMMARY:

Under California Streets and Highway Code, (SHC) §36550 et seq. prior to considering approval of a resolution to disestablish the SUBA BIA, the City is to hold a public hearing to receive the testimony of all interested persons for or against the disestablishment. On November 18, 2025, the City Council approved Resolution No. 661, declaring its intention to disestablish the BIA and setting a public hearing for December 9, 2025. A copy of the approved Resolution of Intention (ROI) and a cover letter explaining the proposed disestablishment was mailed to each BIA member in English and Spanish within seven (7) days after the City Council’s adoption . The City Clerk also published a complete copy of the ROI in English and Spanish through the Monterey County Weekly, a local newspaper, on November 27, 2025, not less than seven (7) days prior to the public hearing. The published and mailed ROI notices are provided as Attachments 2 and 3 to this staff report.

BACKGROUND:

The November 18, 2025 agenda item ID#25-504 staff report includes background regarding the establishment of the SUBA BIA and its purpose, the appointment of SUBA as its Advisory Board, the SUBA Board’s reasons for requesting disestablishment and approach for disposing of assets acquired with assessments. Attachments include the BIA area map, SUBA’s disestablishment request letter, five years of Profit and Loss Statements, and documentation of the Loan identified on the 2025-26 Profit and Loss Statement.

Page | 2
Assessment Reimbursement

As outlined in SHC § 36551(a), upon disestablishment of the BIA any remaining revenues derived from the assessments, or assets acquired with the revenues, shall be refunded to the owners of the businesses then located and operating within the area who paid the levied assessments by applying the same method and basis th at was used to calculate the assessments levied in the fiscal year in which the area is disestablished. There was no levy of assessment in Fiscal Year 2025 -26 as the public hearing scheduled for September 23, 2025 , was continued when SUBA communicated to staff the SUBA Board’s intent to consider disestablishment.

SUBA is responsible for settling all outstanding debts and obligatio ns, and any remaining assets will be distributed to other nonprofit organizations, donated to charity or properly discarded if they cannot be donated. SUBA will coordinate these final steps of dissolving SUBA’s status as a 501(c)(6) nonprofit corporation with the California Secretary of State ’s Business Programs Division.

CEQA CONSIDERATION:

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

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No.

STRATEGIC PLAN INITIATIVE:

This action does not directly align with the City Council’s 2025-2028 Strategic Plan goals and objectives. The SUBA BIA aligned closely with the City Council’s goals (2025-2028) of Economic Development and Public Safety. SUBA utilized the BIA assessment to provide small businesses with access to the educational, technical assistance and financial resources they need to prosper and expand and engaging businesses in existing beautification efforts. SUBA also served as a liaison between SUBA businesses and city departments and divisions including Police and Code Enforcement to address health and public safety concerns in the BIA.

While this option does not align, it does not take away from the good work that SUBA did the past 20+ years and the continuing need for a business facing and centric organization for the Alisal area. Moving forward what this means is that structure needed for 2025 and beyond has evolved and shifted and it presents an opportunity for the City and Alisal Business Community to work together on a new framework and/or organization, as alluded to below.

DEPARTMENTAL COORDINATION:

Community Development Department staff prepared this item in coordination with the City Attorney. In response to SUBA’s disestablishment City staff will continue to coordinate across departments to ensure ongoing support for businesses in the East Salinas area. The Business Page | 3
Navigator position, which served as SUBA’s City liaison, will continue to lead coordination efforts with Finance, Public Works, and the Police Department to maintain services that support safety, cleanliness, and streetscape improvements. Existing City contracts and business assistance programs will be leveraged to concentrate resources in the district.

Staff will also explore strategies to fill the services SUBA provided. This includes leveraging existing City small business support contracts and partnerships to ensure small business services and resources continue to be provided to businesses located along Alisal commercial corridors. On November 19, there was a meeting held in the Alisal area to hear from the business community their perspective, questions and/or suggestions for moving forward. The meeting was hosted by Councilmember Barrera, Councilmember De La Rosa, and Mayor Donohue. A lot of good discussion occurred and there was a commitment to listen and work with the business community and other stakeholders to support continued economic vibrancy in the Alisal.

FISCAL AND SUSTAINABILITY IMPACT:

The disestablishment of SUBA will have no fiscal impact on the General Fund. On November 5, 2019, the City Council adopted Ordinance 2622 amending the Salinas Municipal Code by transferring the responsibility of remitting and collecting the BIA assessment from the City to SUBA. Since that time, SUBA has directly managed the collection and administration of assessment revenues to support district activities and programs. Designated City Liaison’s time, and review of the disestablishment is already allocated through staff time in the adopted 2025 - 2026 City budget. Existing City contracts and business assistance programs will be leveraged to concentrate resources in the district.

ATTACHMENTS:

1. Resolution to Disestablish SUBA

2. ROI published Notice

3. ROI mailed Notice (English and Spanish)
1 RESOLUTION NO. (N.C.S.)

A RESOLUTION OF THE SALINAS CITY COUNCIL TO DISESTABLISH THE

SALINAS UNITED BUSINESS ASSOCIATION BUSINESS IMPROVEMENT AREA

AND DIRECTING AN ORDINANCE BE PREPARED TO REPEAL SALINAS MUNICIPAL CODE CHAPTER 21B ARTICLE V

WHEREAS, Division 18, Part 6, of the California Streets and Highways 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 oc cupied 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 t he Salinas United Business Area Business Improvement Area (SUBA BIA) on August 24, 2004; and

WHEREAS, 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 SUBA BIA.

WHEREAS, said BIA method of assessment was revised in Ordinance No. 2455, adopted by Council on September 15, 2005; and

WHEREAS, on November 5, 2019, the Salinas City Council adopted Ordinance 2622 amending the Salinas Municipal Code to transfer the responsibility of remitting and collecting the SUBA BIA assessment from the City to SUBA; and

WHEREAS, at its September 29, 2025, SUBA’s Board of Directors voted to recommend that the City Council disestablish the SUBA BIA due to economic re alities and declining assessment collection rates, making continued operation of the district financially unsustainable; and

WHEREAS, on November 18, 2025, the City Council approved Resolution of Intention (ROI) No. 661, declaring its intention to disestablish the BIA and setting a public hearing for December 9, 2025; and

WHEREAS, as required by the Streets and Highways Code, a copy of the adopted ROI and a cover letter explaining the proposed disestablishment was mailed to each BIA member in English and Spanish within seven (7) days after the City Council’s adoption; and

WHEREAS, as required by the Streets and Highways Code, the City Clerk also published a complete copy of the ROI in English and Spanish through the Monterey County Weekly, a local newspaper, on November 27, 2025, not less than seven (7) days prior to the public hearing; and

WHEREAS, as set forth in ROI No. 661, a public hearing was held on December 9, 2025, 2 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 disestablishment of said BIA; and

WHEREAS, the City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378); and

WHEREAS, the City will work to ensure continuity of business support in the East Salinas area thro ugh internal coordination of City departments and leveraging existing contracts and programs, while exploring sustainable approaches, including a Property and Business Improvement District (PBID).

NOW, THEREFORE, BE IT RESOLVED by the Salinas City Council that:

1. The Salinas United Business Association Business Improvement Area is to be disestablished pursuant to Streets and Highways Code Sections 36550 and 36551.

2. City Council directs an ordinance be prepared to repeal Salinas City Municipal Code Chapter 21B Article V.

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

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

______________________________
Dennis Donohue, Mayor
ATTEST:

_________________________
Patricia M. Barajas, City Clerk
www.montereycountyweekly.com  AU GUST 14-20, 2025  MONTEREY COUNTY WEEKLY 5

PUBLIC NOTICE
ADOPTED ORDINANCE NO. 5432

SUMMARY
NOTICE is hereby given that at its regularly scheduled meeting on December 9, 2025, the Monterey County Board of Supervisors adopted Ordinance No. 5432, an ordinance of the County of Monterey, State of California.

SUMMARY OF ORDINANCE NO. 5432
County Counsel Summary
This ordinance amends the County’s zoning regulations for accessory and junior dwelling units in the unincorporated coastal zone of Monterey County.

The ordinance updates Section 20.64.030 and other sections of Title 20 of the Monterey County Code to conform to recently enacted state law concerning accessory and junior accessor dwelling units, as well as amending Part 6 of the Monterey County Coastal Implementation Plan to add a new Appendix 15 concerning accessory dwelling unit parking. Such changes include provisions allowed under California Government Code sections 66314 and 66333, including, but not limited to, restrictions on zoning locations, objective standards on parking, height, setback, landscape, and rental restrictions.

This ordinance will require certification by the California Coastal Commission because this ordinance would amend the County of Monterey’s certified Coastal Implementation Plan.

A certified copy of the full text of Ordinance No. 5432, along with names of the Supervisors voting for or against the Ordinance, is posted at the Office of the Clerk of the Board of Supervisors in the Monterey County Government Center, Board of Supervisors Chambers, First Floor, 168 West Alisal Street, Salinas, California.

For additional information, contact Edgar Sanchez, Associate Planner with Housing & Community Development at (831)
783‑7058 or at sancheze8@countyofmonter
ey.gov.

This Ordinance was adopted by the following vote:

AYES: Supervisors
Alejo, Church, Lopez, Root Askew and Daniels
NOES: None
ABSENT
: None
(Go
vernment Code 54953)
DATED: November 21, 2025
/s/ Valerie Ralph, Clerk of the Monterey County Board of Supervisors 30500
RESOLUTION OF INTENTION NO. 661 (N.C.S.)

A RESOLUTION OF THE CITY OF SALINAS DECLARING ITS INTENTION

TO DISESTABLISH THE SALINAS UNITED BUSINESS ASSOCIATION

BUSINESS IMPROVEMENT AREA
WHEREAS, Division 18, Part 6, of the California Streets and Highways Code authorizes the establishment of a Parking and Business Improvement Area pursuant to the provi‑ sions of section 36500, et seq.; and
WHEREAS, the former Sunset Avenue Redevelopment Area is occupied by businesses and retail stores which are underutilized and unable to attract customers due to inade‑ quate facilities, services and activities in the business district; and WHEREAS, the Salinas City Council adopted Ordinance No. 2437 establishing the Salinas United Business Area Business Improvement Area (SUBA BIA) on August 24, 2004; and WHEREAS, the Salinas United Business Association (SUBA) is a 501(c)(6) nonprofit cor‑ poration appointed by the City Council to serve as the advisory board of the SUBA BIA.

WHEREAS, said BIA method of assessment was revised in Ordinance No. 2455, adopted by Council on September 15, 2005; and
WHEREAS, on November 5, 2019, the Salinas City Council adopted Ordinance 2622 amending the Salinas Municipal Code to transfer the responsibility of remitting and collecting the SUBA BIA assessment from the City to SUBA; and WHEREAS, at its September 29, 2025, SUBA’s Board of Directors voted to recommend that the City Council dissolve the SUBA BIA due to economic realities and declining assessment collection rates, making continued operation of the district financially unsustainable; and
WHEREAS, in accordance with California Streets and Highway Code, (SHC) § 36650 et seq., the City Council is to adopt a Resolution of Intention to disestablish the district prior to holding a public hearing. This resolution shall state the reason for disestablishment, specify the time and place of the public hearing, a proposal to dispose of any assets acquired with the revenues of the assessments levied within the BIA; and WHEREAS, SUBA Board of Directors has submitted documentation of its physical assets and its intention to donate identified assets to nonprofit organizations, charity, or otherwise disposing of them in coordination with and direction of the California Secretary of State; and
WHEREAS, the City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378); and
WHEREAS, the City will work to ensure continuity of business support in the East Salinas area through internal coordination of City departments and leveraging existing contracts and programs, while exploring sustainable approaches, including a Property and Business Improvement District (PBID).

NOW, THEREFORE, BE IT RESOLVED by the Salinas City Council as follows:

1. It is
the intention of the City Council to disestablish the Salinas United Business Association Business Improvement Area pursuant to Streets and Highways Code Sections 36550 and 36551.

2. The City Council directs the City Clerk to sc
hedule a public hearing to consider
disestablishment of the BIA for the 5:00 pm session of the Council’ s regularly
scheduled meeting of December 9, 2025, at the Salinas Rotunda, 200 Lincoln Ave., and to give notice of this resolution as required by Section 36523 of the Streets and Highway Code.

3. Following the public hearing the Council intends to adopt an or dinance disestab‑
lishing SUBA BIA and repealing Salinas City Municipal Code Chapter 21B Article V.

PASSED AND APPROVED this 18th day of November, 2025, by the following vote:

AYES: Councilmembers Barrer
a, D’Arrigo, De La Rosa, Salazar, Sandoval,
and Mayor Donohue
NOES: None
ABSENT: Councilmember Barajas
ABST
AIN: None
APPROVED: Dennis Donohue,
Mayor
ATTEST: Patricia M. Barajas,
City Clerk

NOTICE OF PUBLIC HEARING

SALINAS CITY COUNCIL
DECEMBER 9, 2025

PATRICIA M. BARAJAS
City Clerk

Notice is hereby given that the Salinas City Council will conduct a public hearing to disestablish the Salinas United Business Association (SUBA) Business Improvement Area (BIA), on December 9th, 2025, at 5:00 p.m., in the City Council Rotunda located at 200 Lincoln Avenue, Salinas, California, 93901. The City Council will consider all objections or protests, if any, to the proposed disestablishment of the Salinas United Business Association Business Improvement Area.

Pursuant to the California Streets and Highways Code § 36550 and 36551, the City Council adopted a Resolution of Intention No. 661 on November 18th, 2025 to disestablish the SUBA BIA due to economic conditions, declining assessment collection rates, and the resulting financial unsustainability of continued district operations. In accordance with state law, the City Council will hear and consider all written and oral protests to the proposed disestablishment at the time and place mentioned above.

As part of the disestablishment process, the Salinas United Business Association Board of Directors has submitted documentation of physical assets acquired with assessment revenues and its intent to donate identified assets to nonprofit organizations, charities, or otherwise dispose of them in coordination with the California Secretary of State, as permitted by law. The City Council will also consider this proposal at the public hearing. At the conclusion of the public hearing, the City Council will consider adopting an ordinance disestablishing the SUBA BIA and repealing Chapter 21B, Article V of the Salinas Municipal Code.

Disabled persons requiring accommodation in order to participate in the public hearing may contact the City Clerk’s Office, City of Salinas, 200 Lincoln Avenue, Salinas, CA 93901, (831) 758-7381. 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 provider’s CRS telephone number.

CITY CLERK • 200 Lincoln Ave • Salinas, California 93901 City of Salinas
(831) 758-7383 • (831) 758-7368 • www.ci.salinas.ca.us

Por la presente se notifica que el Concejo Municipal de Salinas llevará a cabo una audiencia pública para desestablecer el Área de Mejoramiento Comercial (BIA) de la Asociación de Negocios Unidos de Salinas (SUBA), el 9 de diciembre de 2025, a las 5:00 p.m., en la Rotonda del Concejo Municipal ubicada en 200 Lincoln Avenue, Salinas, California, 93901. El Concejo Municipal considerará todas las objeciones o protestas, si las hubiera, a la disolución propuesta de la Asociación de Negocios Unidos de Salinas. Área de Mejora Empresarial.

De conformidad con el Código de Calles y Carreteras de California § 36550 y 36551, el Concejo Municipal adoptó una Resolución de Intención No. 661 el 18 de noviembre de 2025 para desestablecer la SUBA BIA debido a las condiciones económicas, la disminución de las tasas de recaudación de evaluaciones y la insostenibilidad financiera resultante de las operaciones continuas del distrito. De acuerdo con la ley estatal, el Concejo Municipal escuchará y considerará todas las protestas escritas y orales a la disolución propuesta en el momento y lugar mencionados anteriormente.

Como parte del proceso de disolución, la Junta Directiva de la Asociación Empresarial Unida de Salinas ha presentado documentación de los activos físicos adquiridos con ingresos de tasación y su intención de donar activos identificados a organizaciones sin fines de lucro, organizaciones benéficas o disponer de ellos de otro modo en coordinación con la Secretaría de Estado de California, según lo permite la ley. El Ayuntamiento también considerará esta propuesta en la audiencia pública. Al concluir la audiencia pública, el Concejo Municipal considerará adoptar una ordenanza que desestablezca la SUBA BIA y derogue el Capítulo 21B, Artículo V del Código Municipal de Salinas.

Las personas discapacitadas que requieran alojamiento para participar en la audiencia pública pueden comunicarse con la Oficina de la Secretaria Municipal, Ciudad de Salinas, 200 Lincoln Avenue, Salinas, CA 93901, (831) 758-7381. Los usuarios de teléfonos de texto con discapacidad auditiva o TTY/TDD pueden comunicarse con la Ciudad marcando 711 para el Servicio de Retransmisión de California (CRS) o llamando al número de teléfono CRS de cualquier otro proveedor de servicios.

PATRICIA M. BARAJAS
City Clerk

AVISO DE AUDENCIA PUBLICA

AYUNTAMIENTO DE SALINAS
9 DE DICIEMBRE DE 2025
CITY CLERK • 200 Lincoln Ave • Salinas, California 93901 City of Salinas
(831) 758-7383 • (831) 758-7368 • www.ci.salinas.ca.us
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-539, Version: 1
Zoning Code Amendment 2025-001; Rescind Section 37-50.250 (Accessory Dwelling Units) of Chapter 37 of the Salinas Municipal Code (Zoning Code), remove and modify applicable Zoning Code Accessory Dwelling Unit (ADU) definitions and development regulations and apply applicable State ADU law for the processing of ADU applications
Consider finding Zoning Code Amendment 2025-001 categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15305; and adopt an Ordinance to comply amending Chapter 37 of the Salinas Municipal Code (Zoning Code) to rescind Section 37-50.250 (Accessory Dwelling Units), remove and modify Accessory Dwelling Unit (ADU) definitions of Section 37-10.250 (“A” definitions), modify the ADU development regulations of Sections 37-30.020, 37-30-060, 37-30-110, 37-

30.160, 37-30.390, and 37-30.430, and apply applicable State ADU Law to process ADU applications.

City of Salinas Printed on 12/5/2025Page 1 of 1
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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: DECEMBER 9, 2025
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: LISA BRINTON, DIRECTOR
THROUGH: COURTNEY GROSSMAN, PLANNING MANAGER
BY: THOMAS WILES, SENIOR PLANNER
TITLE: ZONING CODE AMENDMENT 2025 -001; RESCIND SECTION 37 -

50.250 (ACCESSORY DWELLING UNITS) OF CHAPTER 37 OF

THE SALINAS MUNICIPAL CODE (ZONING CODE), REMOVE

AND MODIFY APPLICABLE ZONING CODE ACCESSORY

DWELLING UNIT (ADU) DEFINITIONS AND DEVELOPME NT

REGULATIONS AND APPLY APPLICABLE STATE ADU LAW

FOR THE PROCESSING OF ADU APPLICATIONS

RECOMMENDED MOTION:

A motion that the City Council 1) find Zoning Code Amendment 2025 -001 categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15305 and 2) adopt an Ordinance to amend Chapter 37 of the Salinas Municipal Code (Zoning Code) to rescind Section 37 -50.250 (Accessory Dwelling Units), remove and modify Accessory Dwelling Unit (ADU) definitions of Section 37 -10.250 (“A” definitions), modify the ADU development regulations of Sections 37-30.020, 37-30-060, 37-30-110, 37-30.160, 37-30.390, and 37-30.430, and apply applicable State ADU Law to process ADU applications.

EXECUTIVE SUMMARY:

The City’s ADU Ordinance is out of compliance with State ADU Law. Chapter 37, Article VI, Division 14 provides for a process whereby all Zoning Code Amendments are brought before the City Council for a final decision. The proposed Zoning Code Amendment amends Chapter 37 of the Salinas Municipal Code (Zoning Code) to rescind Section 37 -50.250 (Accessory Dwelling Units), remove and modify Accessory Dwelling Unit (ADU) definitions of Section 37-10.250 (“A” definitions), modify the ADU development regulations of Sections 37-30.020, 37-30-060, 37-30- 110, 37-30.160, 37-30.390, and 37-30.430, and apply applicable State standards for the processing of ADU applications. An updated ADU ordinance is being prepared as part of Phase One of the Zoning Code Update currently underway and scheduled for completion in spring 2026.

As the proposed action involves the adoption of an ordinance, should the City Council unanimously vote in favor of adoption the ordinance would be adopted on the same night as its introduction. (Salinas Charter section 11.3) If the City Council does not vote unanimously in favor Page | 2
of adoption, the ordinance would come back at the City Council’s next meeting for adoption.

BACKGROUND:

Zoning Code Amendment 2025 -001 (ZCA 2025 -001) rescinds Section 37 -50.250 [(Accessory Dwelling Units) (ADU)] of Chapter 37 of the Salinas Municipal Code (Zoning Code). Both Zoning Code Sections 37-10.250 and 37-50.250 were originally established pursuant to Ordinance No. 2463 (Zoning Code), which was adopted by the City Council on November 7, 2006. Zoning Code Section 37-10.250 was subsequently amended by the City Council pursuant to Ordinance s 2507 which was adopted on May 18, 2010, No. 2581 which was adopted on December 6, 2016, and No. 2605 on July 3, 2018. Zoning C ode Section 37 -50.250 was also amended by above referenced Ordinance No. 2581 and No. 2626 which was adopted by the Council on November 5, 2019.

State ADU Law:

On January 1, 2020, after the latest City revision to Zoning Code Section 37 -50.250, California Government Code Sections 65852.2 and 65852.22 became effective. Section 65852.2 allowed for the development of ADUs and Section 65852.22 allowed for the development of Junior Accessory Dwelling Units (JADUs). On March 25, 2024, these Government Code Sections were renamed to the following:

Government Code Sections 66314 – 66332 (ADUs)
Government Code Sections 66333 – 66339 (JADUs)
Government Code Sections 66340 – 66342 (ADU Home Sales)

Per State law, Junior Accessory Dwelling Units (JADUs) are allowed to be created within the walls of a proposed or existing single-family residence and shall contain no more than 500 square feet.

JADUs offer additional housing options. They may share central systems, contain a basic kitchen utilizing small plug-in appliances, may share a bathroom with the primary dwelling, all to reduce development costs. JADUs present no additional stress on utility services or infrastructure because they simply repurpose existing space within the residence and do not expand the dwellings planned occupancy. JADUs are only allowed for owner -occupied properties unless the owner is another governmental agency, land trust, or housing organization. ADUs have no owner -occupied requirements. Development of JADUs are governed by Government Code Section 66333 through 66339.

The above referenced California Government Code Sections are not consistent with the City’s current ADU Ordinance (Zoning Code Sections 37-50.250). Because of this inconsistency, since 2020, staff has processed both ADUs and JADUs pursuant to State ADU Law and the administrative building permit process. To avoid confusion, the State Housing and Community Development Department (HCD) recommends that the City rescind the current ADU Ordinance and follow the State ADU Law and guidelines until a compliant ADU ordinance is adopted.

Analysis:

The rescinding of the ADU Ordinance requires that the existing ADU definitions and development Page | 3
regulations be modified to comply with State ADU Law. Currently, ADUs are defined in Zoning Code Section 37-10.250 as either “Interior” or “Other” as stated below. The revisions in the ADU definitions would remove the “Interior” and “Other” definitions and modify the ADU definitio n so that it is consistent with State ADU Law. In addition, the use classifications of Agricultural, Residential, Public/Semipublic, and New Urbanism Zoning District would be modified to be consistent with the new ADU definitions and State ADU Law.

The Amendment would modify and remove the following “Accessory Dwelling Unit” definitions from Section 37-10.250 (“A” definitions) as follows (changes in strikethrough/underline format):

“Sec. 37-10.250. – “A” definitions.

Accessory Dwelling Unit. An attached or a detached residential dwelling unit defined as either an Accessory Dwelling Unit (ADU) or a Junior Accessory Dwelling (JADU) that is constructed in compliance with State ADU Law. which provides complete independent living facilities for one or more p ersons, including permanent provisions for living, sleeping, eating, cooking, and sanitation, which is located on the same parcel as a single -family detached dwelling unit. An accessory dwelling unit must contain at least one hundred fifty square feet of f loor area and may consist of an efficiency unit, as defined in Section 17958.1 of Health and Safety Code; or a manufactured home, as defined in Section 18007 of the Health and Safety Code.

Accessory Dwelling Unit, Interior. An accessory dwelling unit which is constructed in the R -L district entirely within the existing and legally created space of a single-family detached dwelling unit or accessory structure.

Accessory Dwelling Unit, Other. An accessory dwelling unit which is constructed either as a new detached accessory structure; as an addition to an existing single-family detached dwelling unit or an existing accessory structure; or entirely within the existing and legally created space of a single- family detached dwelling unit or accessory structure but not in the R-L district.

The Amendment would modify Zoning Code Section 37-30-020, Table 37-30.10, and Footnote 6 [Agricultural (A) Zoning District] as follows (changes in strikethrough/underline format):

Table 37-30.10

Agricultural (A) District Use Classifications

Land Use A Additional Use Regulations

Residential Uses
Accessory Dwelling Units, Other P (6)

(6) See Section 37-50.250, Accessory dwelling units,. An accessory dwelling unit shall only be permitted on a lot with a single-family detached dwelling shall be permitted pursuant to State ADU Law.

Page | 4
The Amendment would modify Zoning Code Section 37-30-060, Table 37-30.30, and Footnote 5 [Residential Low Density (R -L-5.5) Zoning District] as follows (changes in strikethrough/underline format):

Table 37-30.30

Residential Low District (R-L) Use Classifications

Land Use R-L-5.5 Additional Use Regulations

Residential Uses
Accessory Dwelling Units, Interior P (5)
Accessory Dwelling Units, Other P (5)

(5) See Section 37-50.250, Accessory dwelling units,. An accessory dwelling unit shall only be permitted on a lot with a single-family detached dwelling shall be permitted pursuant to State ADU Law.

The Amendment would modify Zoning Code Section 37-30-110, Table 37-30.50, and Footnote 7 [Residential Medium Density (R -M) Zoning District] as follows (changes in strikethrough/underline format):

Table 37-30.50

Residential Medium Density (R-M) Districts Use Classifications

Land Use R-M-3.6 R-M-2.9 Additional Use
Regulations
Residential Uses
Accessory Dwelling Units, Other P P (7)

(7) See Section 37-50.250, Accessory dwelling units,. An accessory dwelling unit shall only be permitted on a lot with a single-family detached dwelling shall be permitted pursuant to State ADU Law.

The Amendment would modify Zoning Code Section 37-30-160, Table 37-30.70, and Footnote 8 [Residential High Density (R-H) Zoning District] as follows (changes in strikethrough/underline format):

Table 37-30.70

Residential High Density (R-H) Districts Use Classifications

Land Use R-H-2.1 R-H-1.8 Additional Use
Page | 5
Regulations
Residential Uses
Accessory Dwelling Units, Other P P (8)

(8) See Section 37-50.250, Accessory dwelling units,. An accessory dwelling unit shall only be permitted on a lot with a single-family detached dwelling shall be permitted pursuant to State ADU Law.

The Amendment would modify Zoning Code Section 37-30-390, Table 37-30.170, delete Footnote 12 applicability to Accessory Dwelling Units and add Footnote 15 [Public/Semipublic (PS) Zoning District] as follows (changes in strikethrough/underline format):

Table 37-30.170

Public/Semipublic (PS) Use Classifications

Land Use PS Additional Use Regulations

Residential Uses
Accessory Dwelling Units, Other CUP P (12)(13)(15)

(15) Accessory dwelling units shall be permitted pursuant to State ADU Law.

The Amendment would modify Zoning Code Section 37 -30-430, Table 37-30.190, and Footnote 6 [New Urbanism (NU) Zoning Districts] as follows (changes in strikethrough/underline format):

Table 37-30.190

New Urbanism (NU) Districts Use Classifications

Land Use NE (Low) NG-1
(Medium)
NG-2
(High)
VC Additional
Use
Regulations

Residential Uses
Accessory Dwelling
Units, Other
P P P NP (6)

(6) See Section 37-50.250, Accessory dwelling units,. An accessory dwelling unit shall only be permitted on a lot with a single-family detached dwelling shall be permitted pursuant to State ADU Law.

The Amendment would also rescind Section 37-50.250 (Accessory Dwelling Units) of Chapter 37 of the Salinas Municipal Code (Zoning Code) as follows (changes in strikethrough/underline Page | 6
format):

“Sec. 37-50.250. - Accessory dwelling units.
(a) Purpose. The purpose of this section is to comply with the requirements of the California Government Code relating to accessory dwelling units. In the event of any conflict between this section and the California Government Code, the California Government Code shall prevail. An accessory dwelling unit conforming to the provisions of this section shall be approved minister ially within the time limits specified by Government Code Section 65852.2 or any successor provisions. (b) Where Permitted.
(1) Accessory dwelling units, interior are allowed as a permitted use in the R -L district.
(2) Accessory dwelling units, other are allowed as a permitted use in an A, R, or NU district, subject to subsection (d) below. All accessory dwelling units are permitted only on lots with one single-family detached dwelling unit and no other dwelling units.
(3) No accessory dwelling units shall be permitted in a development subject to a planned unit development permit approved under Article IV, Division 13 of Chapter 37, or any applicable predecessor or successor sections of this Code, unless accessory dwelling units are expressly authorized by such planned unit development permit.
(4) A maximum of one accessory dwelling unit shall be permitted per lot or parcel. An accessory dwelling unit shall not be sold separately from the principal dwelling unit.
(c) Development Regulations and Design Standards —Accessory dwelling uni t, interior.
(1) The accessory dwelling unit must have exterior access independent from the existing single-family detached dwelling unit.
(2) Side and rear setbacks must be determined to be sufficient for fire safety by the building official.
(3) No new or separate utility connection directly between the accessory dwelling unit and the utility may be required.
(4) Sprinklers may not be required for the accessory dwelling unit unless they are required for the existing single-family detached dwelling unit. (5) The total floor area of an accessory dwelling unit, interior, shall not exceed the greater of one-thousand two-hundred square feet or fifty percent of the existing living area of the primary residence.
(d) Development Regulations and Design Standards - Accessory dwelling unit, other.
(1) Floor Area.
(A) The total floor area of a detached accessory dwelling unit shall not exceed a maximum of one -thousand two -hundred square feet of gross floor area.
(B) The total floor area of an attached accessory dwelling unit shall not exceed a maximum of fifty-percent of the existing living area of the Page | 7
primary residence, not to exceed a maximum of one -thousand two- hundred square feet.
(C) Accessory dwelling units that require additional floor area for the unit are prohibited on the second floor of a single -family detached dwelling unit. Accessory dwelling units may be located within an existing second floor of a single -family detached dwelling unit subject to the requirements of subsection (c) of this section. (2) Design. The exterior design of the accessory dwelling unit shall be in harmony with the principal dwelling unit. This shall be accomplished through the use of building materials, architectural design, height, scale, exterior colors, and finishes that are compatible with the principal dwelling unit. Accessory dwelling units shall be designed so as not to adversely affect the character of the surrounding neighborhood. The design standards of the base zoning distr ict shall apply. No passageway shall be required in conjunction with the construction of an accessory dwelling unit. (3) Sprinklers. Sprinklers may not be required for the accessory dwelling unit unless they are required for the existing single -family detached dwelling unit.
(e) Other Development Standards. Except as modified by this section, the accessory dwelling unit shall conform to all applicable development regulations established for single -family detached dwelling units in the underlying zoning dist rict, including without limitation, the maximum height, required yards, minimum usable open space requirements for single-family detached dwelling units in the applicable zoning district, and distance between structures.
(f) Parking. One off-street parking space shall be provided for each bedroom in the accessory dwelling unit, and parking required for the single -family dwelling units shall be provided on the same site in accordance with Section 37-50.360, off-street parking and loading spaces regulations. A minimum of one off-street parking space shall be provided for an efficiency unit off -street parking for accessory dwelling units may be provided as tandem parking on an existing legal driveway or in setbacks, excluding the front or side -corner setbacks of a site; however off -street parking spaces for accessory dwelling units are not required in any of the following instances:
(1) The accessory dwelling unit is located within one -half mile of a public transit stop.
(2) The accessory dwelling unit is located within an architecturally and historically significant historic district.
(3) The accessory dwelling unit is an "accessory dwelling unit, interior" as defined in this Chapter 37.
(4) When on-street parking permits are required but not offered to the occupant of the accessory dwelling unit.
(5) When there is a car share vehicle pickup location located within one block of the accessory dwelling unit.

Notwithstanding the above, if the acc essory dwelling unit replaces an existing garage, carport, or covered parking structure, replacement spaces must be provided Page | 8
to meet the requirements of Division 2 of this Chapter 37 . Such replacement spaces may be provided as garaged spaces, covered spaces, uncovered spaces on a legal driveway, tandem spaces, or mechanical parking lifts on the same lot as the primary residence. As used in this subsection (f), "driveway" shall mean a private roadway or travel way and its access point from a public street for the exclusive use of the occupants of a property and their guests.
(g) Density. An accessory dwelling unit which conforms to the requirements of this section shall not be considered to exceed the allowable density for the lot upon which it is located, and shall be deemed to be a residential use, consistent with the Salinas general plan and zoning designation for the lot. (h) Deed Restriction. The owner of the parcel of land upon which the accessory dwelling unit is proposed to be located shall execute a deed restriction, running with the land, in a form satisfactory to and approved by the city, which states that the second dwelling unit shall not be rented for terms less than thirty days, that the lot shall be developed and maintained in conformance with this section, and that the requirements of this section are binding upon any successor in ownership of the property. Such deed restriction shall be filed by the city planner for recordation by the Monterey County recorder's office prior to issuance of any building permits for the accessory dwelling unit.
(i) Administrative Fee. The city may charge an administrative fee for monitoring compliance with the provisions of this section as determined by the city council.”

The rescinding of Zoning Code Section 37 -50.250 requires the City to continue to process applications for ADUs and JADUs pursuant to State law as per Government Code Section 66316 until a City Ordinance for the processing of ADUs is approved by the State.

Findings:

Findings in support of the Amendment are incorporated in the attached draft Ordinance. The City Council may approve Zoning Code Amendment 2025 if the findings set forth in the proposed Ordinance are established.

November 19, 2025, Planning Commission Meeting:

On November 19, 2025, the Planning Commission recommended that the City Council find Zoning Code Amendment 2025-001 exempt from the California Environmental Quality Act (CEQA) and recommended that the Council approve the Amendment (see attached Planning Commission Resolution 2025-12).

Noticing:

On November 27, 2025, a Notice of Public Hearing was published in the Monterey County Weekly, a newspaper of general circulat ion. As per Zoning Code Section 37 -60.400(c), it was published as a 1/8 th page notice. On November 20, 2025, a Notice of Public Hearing was also posted at City Hall and the Permit Center.

Page | 9
Time Consideration:

The proposed project is a Zoning Code Amendment, which is a legislative act and is not subject to the Permit Streamlining Act (PSA).

Alternatives Available to the Council:

The City Council has the following alternatives:

1. Affirm the findings set forth in the attached Ordinance, find the Amendment exempt from CEQA and introduce and then adopt the Ordinance with modifications; or

2. Find that the Amendment is not appropriate and establish findings at the public hearing denying the Amendment.

CEQA CONSIDERATION:

The environmental impacts of the project have been analyzed in accordance with the California Environmental Quality Act (CEQA). The proposed Zoning Code Amendment is categorically exempt (Class 5) from further environmental analysis per CEQA Guidelines Section 15305 (Minor Alterations in Land Use Limitations).

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

Yes.

STRATEGIC PLAN INITIATIVE:

This action supports the Council’s Strategic Goal of Housing/Affordable Housing by clarifying guidelines for processing the entitlement and construction of Accessory Dwelling Units (ADUs).

DEPARTMENTAL COORDINATION:

The Community Development Department and the City Attorney’s Office coordinated on the preparation of the proposed Zoning Code Amendment.

FISCAL AND SUSTABILITY IMPACT:

There is no direct impact to the General Fund associated with this Amendment.

ATTACHMENTS:

Draft City Council Ordinance
Planning Commission Resolution No. 2025-12
Planning Commission Staff Report dated November 19, 2025 without attachments

Page | 10

Page 1 of 10 ends

ORDINANCE NO. ________ (N.C.S)

AN ORDINANCE AMENDING CHAPTER 37 OF THE SALINAS MUNICIPAL CODE (ZONING CODE) TO RESCIND SECTION 37-50.250 (ACCESSORY DWELLING

UNITS), REMOVE AND MODIFY ACCESSORY DWELLING UNIT (ADU) DEFINITIONS OF SECTION 37-10.250 (“A” DEFINITIONS), AND MODIFY THE ADU DEVELOPMENT REGULATIONS OF SECTIONS 37-30.020, 37-30-060, 37-30-110, 37-

30.160, 37-30.390, AND 37-30.430, AND APPLY APPLICABLE STATE ADU LAW FOR

THE PROCESSING OF ADU APPLICATIONS
(ZCA 2025-001)

City Attorney Impartial Analysis
The proposed ordinance amends the Salinas Zoning Code to delete the provisions applicable to Accessory Dwelling Units (ADUs). The deletions are necessary to bring the Salinas Zoning Code’s regulations of ADUs into compliance with State law. By deleting the provisions applicable to ADUs, the City would apply the State’s regulations related to ADUs.

WHEREAS, on November 7, 2006, the Salinas City Council, adopted Ordinance Number 2463 replacing the then existing Zoning Code; and

WHEREAS, the Salinas City Council has amended various provisions of Chapter 37 of the Salinas Municipal Code (“Zoning Code”) to allow for general changes, language clarification, and minor corrections; and

WHEREAS, On January 1, 2020, after the latest City revision to Zoning Code Section 37-

50.250, California Government Code Sections 65852.2 and 65852.22 became effective; and

WHEREAS, Section 65852.2 allowed for the development of ADUs and Section 65852.22 allowed for the development of Junior Accessory Dwelling Units (JADUs). On March 25, 2024, these Government Code Sections were renamed Government Code Sections 66314 – 66332 (ADUs), Government Code Sections 66333 – 66339 (JADUs), and Government Code Sect ions 66340 – 66342 (ADU Home Sales); and

WHEREAS, the City’s ADU Ordinance has not been updated to be compliant with State ADU Law; and

WHEREAS, to avoid confusion, the State Housing and Community Development Department (HCD) recommends that the City rescind the current ADU Ordinance and follow the State ADU Law and guidelines until a compliant ADU ordinance is adopted; and

WHEREAS, an updated ADU ordinance is being prepared as part of Phase One of the Zoning Code Update currently underway and scheduled for completion in spring 2026; and

WHEREAS, on November 19, 2025, at a duly noticed public hearing, the Salinas Planning Commission recommended that the City Council introduce and adopt Zoning Code Amendment 2025-001, to amend Chapter 37 of the Salinas Mu nicipal Code (Zoning Code) to rescind Section

Page 2 of 10 ends

37-50.250 ( Accessory Dwelling Units), remove and modify Accessory Dwelling Unit (ADU) definitions of Section 37-10.250 (“A” definitions), modify development regulations of Sections 37-30.020, 37 -30-060, 37-30-110, 37 -30.160, 37 -30.390, and 37 -30.430, and apply applicable State standards for the processing of Accessory Dwelling Unit (ADU) applications; and

WHEREAS, on December 9, 2025, at a duly noticed public hearing, the City Council weighed the evidence, including the Staff Report which is on file at the Community Development Department together with the record of environmental review and hereby finds that the following amendment will not have the effect of reversing policies of the Salinas General Plan or other plans and policies previously adopted by the City Council and the City Council finds the project to be categorically exempt from the California Environmental Quality Act (CEQA), as follows:

Categorical Exemption:

1. The project has been found to be a Class 5 Categorical Exemption pursuant to Guidelines Section 15305 of the Guidelines to the California Environmental Quality Act (CEQA);

The proposed Zoning Code Amendment is a response to a request from the State of California to amend Chapter 37 of the Salinas Municipal Code (Zoning Code) to rescind Section 37-50.250 (Accessory Dwelling Units), remove and modify Accessory Dwelling Unit (ADU) definitions of Section 37 -10.250 (“ A” definitions), modify development regulations of Sections 37-30.020, 37-30-060, 37-30-110, 37-30.160, 37-30.390, and 37-

30.430, and apply applicable State standards for the processing of Accessory Dwelling Unit (ADU) applications.

WHEREAS, the Salinas City Council adopts the following findings, as set forth in Zoning Code Section 37 -60.1120, as the basis for its introduction and adoption of the proposed Zoning Code Amendment:

Zoning Code Amendment 2025-001:

1. The Amendment is consistent with the Salinas General Plan and other plans and policies adopted by the Salinas City Council.

The proposed Zoning Code Amendment amends Chapter 37 of the Salinas Municipal Code (Zoning Code) to rescind Section 37 -50.250 ( Accessory Dwelling Units), remove and modify Accessory Dwelling Unit (ADU) definitions of Section 37 -10.250 (“ A” definitions), modify development regulations of S ections 37 -30.020, 37 -30-060, 37 -30- 110, 37 -30.160, 37 -30.390, and 37 -30.430, and apply applicable State ADU Law and guidelines for the processing of Accessory Dwelling Unit (ADU) applications.

The proposed Zoning Code Amendment would remove the existing Accessory Dwelling Unit (ADU) Ordinance along with removal and modification of ADU definitions and the modification of Zoning Code development regulations for ADU so that the Zoning Code is in consistent with applicable State ADU law . As a result, ZCA 2025-001 would be consistent with the General Plan and Zoning Code.

Page 3 of 10 ends

2. The Amendment will not have the effect of reversing the policies of the Salinas General Plan, any applicable Specific Plan, and other plans and policies adopted by the Salinas City Council.

The proposed Zoning Code Amendment amends Chapter 37 of the Salinas Municipal Code (Zoning Code) to rescind Section 37 -50.250 ( Accessory Dwelling Units), remove and modify Accessor y Dwelling Unit (ADU) definitions of Section 37 -10.250 (“ A” definitions), modify development regulations of S ections 37 -30.020, 37 -30-060, 37 -30- 110, 37 -30.160, 37 -30.390, and 37 -30.430, and apply applicable State ADU Law and guidelines for the processing of Accessory Dwelling Unit (ADU) applications.

The Zoning Code Amendment would be consistent with Goal H -1 of the General Plan Housing Element by providing a range of housing types and a variety of affordability levels to address existing and projected housing construction needs in Salinas. It would also be consistent with Goal H -3 of the General Plan Housing Element by assisting in ensuring that all segments of the community have access to safe and decent housing that meets their diverse needs. The Zoning Code Amendment would allow for the continued processing of ADU applications pursuant to applicable State ADU Law. In addition, the City is currently drafting a new ADU Ordinance which would be consistent with State ADU Law.

3. The Amendment would not create an isolated district unrelated to adjacent zoning districts.

The Zoning Code Amendment is an amendment to the text of the Zoning Code and would not rezone or create new zoning districts. Therefore, the Zoning Code Amendment would not create any isolated districts unrelated to adjacent zoning districts.

4. The City has the capability to provide public utilities, roads, and services to serve the uses allowed by the proposed amendment.

Salinas is an urbanized area and public infrastru cture is presently in place to serve most uses. The proposed Amendment would not create the need for additional infrastructure.

NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF SALINAS AS FOLLOWS: (Revisions are shown in underline/strikethrough text)

SECTION 1. Remove the following definitions from Zoning Code Section 37-10.250 as follows:

“Sec. 37-10.250. – “A” definitions.

Accessory Dwelling Unit. An attached or a detached residential dwelling unit defined as either an Accessory Dwelling Unit (ADU) or a Junior Accessory Dwelling (JADU) that is constructed in compliance with State ADU law. which provides complete independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and sanitation, which is located on the same parcel as a single - family detached dwelling unit. An accessory dwelling unit must contain at least one hundred fifty square feet of floor area and may consist of an efficiency unit, as defined in

Page 4 of 10 ends

Section 17958.1 of Health and Safety Code; or a manufactured home, as defined in Section 18007 of the Health and Safety Code.

Accessory Dwelling Unit, Interior. An accessory dwelling unit which is constructed in the R-L district entirely within the existing and legally created space of a single -family detached dwelling unit or accessory structure.

Accessory Dwelling Unit, Other. An accessory dwelling unit which is constructed either as a new detached accessory structure; as an addition to an existing single-family detached dwelling unit or an existing accessory structure; or entirely within the existing and legally created space of a single -family detached dwelling unit or accessory structure but not in the R-L district.

SECTION 2. Modify Zoning Code Section 37 -30-020, Table 37-30.10, and Footnote 6 [Agricultural (A) Zoning District] as follows:

Table 37-30.10

Agricultural (A) District Use Classifications

Land Use A Additional Use Regulations

Residential Uses
Accessory Dwelling Units ,
Other
P (6)

(6) See Section 37-50.250, Accessory dwelling units,. An accessory dwelling unit shall only be permitted on a lot with a single-family detached dwelling shall be permitted pursuant to State ADU law.

SECTION 3. Modify Zoning Code Section 37 -30-060, Table 37-30.30, and Footnote 6 [Residential Low Density (R-L-5.5) Zoning District] as follows:

Table 37-30.30

Residential Low District (R-L) Use Classifications

Land Use R-L-5.5 Additional Use Regulations

Residential Uses
Accessory Dwelling Units ,
Interior
P (5)
Accessory Dwelling Units,
Other
P (5)

Page 5 of 10 ends

(5) See Section 37-50.250, Accessory dwelling units,. An accessory dwelling unit shall only be permitted on a lot with a single-family detached dwelling shall be permitted pursuant to State ADU law.

SECTION 4. Modify Zoning Code Section 37 -30-110, Table 37-30.50, and Footnote 7 [Residential Medium Density (R-M) Zoning District] as follows:

Table 37-30.50

Residential Medium Density (R-M) Districts Use Classifications

Land Use R-M-3.6 R-M-2.9 Additional Use
Regulations
Residential Uses
Accessory Dwelling Units,
Other
P P (7)

(7) See Section 37-50.250, Accessory dwelling units,. An accessory dwelling unit shall only be permitted on a lot with a single-family detached dwelling shall be permitted pursuant to State ADU law.

SECTION 5. Modify Zoning Code Section 37 -30-160, Table 37-30.70, and Footnote 8 [Residential High Density (R-H) Zoning District] as follows:

Table 37-30.70

Residential High Density (R-H) Districts Use Classifications

Land Use R-H-2.1 R-H-1.8 Additional Use
Regulations
Residential Uses
Accessory Dwelling Units,
Other
P P (8)

(8) See Section 37-50.250, Accessory dwelling units,. An accessory dwelling unit shall only be permitted on a lot w ith a single -family detached dwelling shall be permitted pursuant to State ADU law.

SECTION 6. Modify Zoning Code Section 37-30-390, Table 37-30.170, delete Footnote 12 applicability to Accessory Dwelling Units and add Footnote 15 [Public/Semipublic (PS) Zoning District] as follows:

Table 37-30.170

Public/Semipublic (PS) Use Classifications

Land Use PS Additional Use Regulations

Page 6 of 10 ends

Residential Uses
Accessory Dwelling Units ,
Other
CUP P (12)(13)(15)

(15) Accessory dwelling units shall be permitted pursuant to State ADU law.

SECTION 7. Modify Zoning Code Section 37-30-430, Table 37-30.190, and Footnote 6 [New Urbanism (NU) Zoning Districts] as follows:

Table 37-30.190

New Urbanism (NU) Districts Use Classifications

Land Use NE (Low) NG-1
(Medium)
NG-2
(High)
VC Additional
Use
Regulations

Residential Uses
Accessory
Dwelling Units ,
Other
P P P NP (6)

(6) See Section 37-50.250, Accessory dwelling units,. An accessory dwelling unit shall only be permitted on a lot with a single-family detached dwelling shall be permitted pursuant to State ADU law.

SECTION 8. Rescind Section 37 -50.250 (Accessory Dwelling Units) of Chapter 37 of the Salinas Municipal Code (Zoning Code) as follows:

“Sec. 37-50.250. - Accessory dwelling units.
(a) Purpose. The purpose of this section is to comply with the requirements of the California Government Code relating to accessory dwelling units. In the event of any conflict between this section and the California Government Code, the California Government Code shall prevail. An accessory dwelling unit conforming to the provisions of this section shall be approved ministerially within the time limits specified by Government Code Section 65852.2 or any successor provisions. (b) Where Permitted.
(1) Accessory dwelling units, interior are allowed as a permitted use in the R - L district.
(2) Accessory dwelling units, other are allowed as a permitted use in an A, R, or NU district, subject to subsection (d) below. All accessory dwelling units are permitted only on lots with one single -family detached dwelling unit and no other dwelling units.
(3) No accessory dwelling units shall be permitted in a development subject to a planned unit development permit approved under Article IV, Division

Page 7 of 10 ends

13 of Chapter 37, or any applicable predecessor or successor sections of this Code, unless accessory dwelling units are expressly authorized by such planned unit development permit.
(4) A maximum of one accessory dwelling unit shall be permitted per lot or parcel. An accessory dwelling un it shall not be sold separately from the principal dwelling unit.
(c) Development Regulations and Design Standards —Accessory dwelling unit, interior.
(1) The accessory dwelling unit must have exterior access independent from the existing single-family detached dwelling unit.
(2) Side and rear setbacks must be determined to be sufficient for fire safety by the building official.
(3) No new or separate utility connection directly between the accessory dwelling unit and the utility may be required.
(4) Sprinklers may not be required for the accessory dwelling unit unless they are required for the existing single-family detached dwelling unit. (5) The total floor area of an accessory dwelling unit, interior, shall not exceed the greater of one-thousand two-hundred square feet or fifty percent of the existing living area of the primary residence.
(d) Development Regulations and Design Standards - Accessory dwelling unit, other.
(1) Floor Area.
(A) The total floor area of a detached accessory dwelling unit shall not exceed a maximum of one -thousand two -hundred square feet of gross floor area.
(B) The total floor area of an attached accessory dwelling unit shall not exceed a maximum of fifty-percent of the existing living area of the primary residence, not to exceed a maximum of one-thousand two- hundred square feet.
(C) Accessory dwelling units that require additional floor area for the unit are prohibited on the second floor of a single -family detached dwelling unit. Accessory dwelling units may be located within a n existing second floor of a single -family detached dwelling unit subject to the requirements of subsection (c) of this section. (2) Design. The exterior design of the accessory dwelling unit shall be in harmony with the principal dwelling unit. This shall be accomplished through the use of building materials, architectural design, height, scale, exterior colors, and finishes that are compatible with the principal dwelling unit. Accessory dwelling units shall be designed so as not to adversely affect the character of the surrounding neighborhood. The design standards of the base zoning district shall apply. No passageway shall be required in conjunction with the construction of an accessory dwelling unit. (3) Sprinklers. Sprinklers may not be required for th e accessory dwelling unit unless they are required for the existing single -family detached dwelling unit.
(e) Other Development Standards. Except as modified by this section, the accessory dwelling unit shall conform to all applicable development regulatio ns established for single -family detached dwelling units in the underlying zoning district,

Page 8 of 10 ends

including without limitation, the maximum height, required yards, minimum usable open space requirements for single-family detached dwelling units in the applicable zoning district, and distance between structures.
(f) Parking. One off-street parking space shall be provided for each bedroom in the accessory dwelling unit, and parking required for the single -family dwelling units shall be provided on the same site in accordance with Section 37-50.360, off-street parking and loading spaces regulations. A minimum of one off-street parking space shall be provided for an efficiency unit off -street parking for accessory dwelling units may be provided as tandem parking on an existing legal driveway or in setbacks, excluding the front or side -corner setbacks of a site; howeve r off-street parking spaces for accessory dwelling units are not required in any of the following instances:
(1) The accessory dwelling unit is located within one -half mile of a public transit stop.
(2) The accessory dwelling unit is located within an arch itecturally and historically significant historic district.
(3) The accessory dwelling unit is an "accessory dwelling unit, interior" as defined in this Chapter 37.
(4) When on-street parking permits are required but not offered to the occupant of the accessory dwelling unit.
(5) When there is a car share vehicle pickup location located within one block of the accessory dwelling unit.

Notwithstanding the above, if the accessory dwelling unit replaces an existing garage, carport, or covered parking structure, replacement spaces must be provided to meet the requirements of Division 2 of this Chapter 37 . Such replacement spaces may be provided as garaged spaces, covered spaces, uncovered spaces on a legal driveway, tandem spaces, or mechanical parking lifts on the same lot as the primary residence. As used in this subsection (f), "driveway" shall mean a private roadway or travel way and its access point from a public street for the exclusive use of the occupants of a property and their guests.
(g) Density. An accessory dwelling unit which conforms to the re quirements of this section shall not be considered to exceed the allowable density for the lot upon which it is located, and shall be deemed to be a residential use, consistent with the Salinas general plan and zoning designation for the lot. (h) Deed Rest riction. The owner of the parcel of land upon which the accessory dwelling unit is proposed to be located shall execute a deed restriction, running with the land, in a form satisfactory to and approved by the city, which states that the second dwelling unit shall not be rented for terms less than thirty days, that the lot shall be developed and maintained in conformance with this section, and that the requirements of this section are binding upon any successor in ownership of the property. Such deed restriction shall be filed by the city planner for recordation by the Monterey County recorder's office prior to issuance of any building permits for the accessory dwelling unit.
(i) Administrative Fee. The city may charge an administrative fee for monitoring compliance with the provisions of this section as determined by the city council.”

Page 9 of 10 ends

SECTION 9. This Ordinance shall take effect and be in force thirty days from and after its adoption.

SECTION 10. The Salinas City Clerk is hereby directed to cause the following summary of this ordinance to be published by one (1) insertion in The Monterey Herald , a newspaper of general circulation published and circulated in the City of Salinas and hereby designated for that purpose by the Salinas City Council:

“An Ordinance amending Chapter 37 of the Salinas Municipal Code (Zoning Code) to comply with a State request to rescind Section 37 -50.250 (Accessory Dwelling Units), remove and modify Accessory Dwelling Unit (ADU) definitions of Section 37 -10.250 (“A” definitions), modify the ADU development regulations of Sections 37-30.020, 37-30- 060, 37 -30-110, 37 -30.160, 37 -30.390, and 37 -30.430, and apply applicable State standards for the processing of ADU applications. (ZCA 2025-001).”

SECTION 11. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance.

The Salinas City Council hereby declares that it would have passed this ordinance, and each and every section, subsection, clause and phrase thereof not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

This Ordinance was introduced and read on the 9 th of December 2025, and passed and adopted on December 9, 2025, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED

_________________________________
Dennis Donohue, Mayor
ATTEST

________________________
Patricia M. Barajas, City Clerk

Page 10 of 10 ends

APPROVED AS TO FORM

___________________________
Christopher A. Callihan, City Attorney

Page | 1

CITY OF SALINAS

PLANNING COMMISSION REPORT

DATE: NOVEMBER 19, 2025

TO: PLANNING COMMISSION

FROM: LISA BRINTON, DIRECTOR

COURTNEY GROSSMAN, PLANNING MANAGER

BY: THOMAS WILES, SENIOR PLANNER

TITLE: ZONING CODE AMENDMENT 202 5-001; RESCIND SECTION 37-50.250 (ACCESSORY DWELLING UNITS) OF CHAPTER 37 OF THE SALINAS

MUNICIPAL CODE (ZONING CODE) , REMOVE AND MODIFY

APPLICABLE ZONING CODE ACCESSORY DWELLING UNIT (ADU)

DEFINITIONS AND DEVELOPMENT REGULATIONS AND APPLY

APPLICABLE STATE ADU LAW FOR THE PROCESSING OF ADU

APPLICATIONS

RECOMMENDED MOTION:

A motion to recommend that the City Council 1) find Zoning Code Amendment 2025 -001 categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15305 and 2) adopt an Ordinance to comply amending Chapter 37 of the Salinas Municipal Code (Zoning Code) to rescind Section 37-50.250 (Accessory Dwelling Units), remove and modify Accessory Dwelling Unit (ADU) definitions of Section 37 -10.250 (“A” definitions), modify the ADU development regulations of Sections 37-30.020, 37-30-060, 37-30- 110, 37-30.160, 37-30.390, and 37-30.430, and apply applicable State ADU Law to process ADU applications.

EXECUTIVE SUMMARY:

The City’s ADU Ordinance is out of compliance with State ADU Law. Chapter 37, Article VI, Division 14 provides for a process whereby all Zoning Code Amendments are brought before the City Council for a final decision. The proposed Zoning Code Amendment amends Chapter 37 of the Salinas Municipal Code (Zoning Code) to rescind Section 37 -50.250 (Accessory Dwelling Units), remove and modify Accessory Dwelling Unit (ADU) definitions of Section 37-10.250 (“A” definitions), modify the ADU development regulations of Sections 37-30.020, 37-30-060, 37-30- 110, 37-30.160, 37-30.390, and 37-30.430, and apply applicable State standards for the processing Page | 2

of ADU applications. An updated ADU ordinance is being prepared as part of Phase One of the Zoning Code Update currently underway and scheduled for completion in spring 2026.

DISCUSSION:

Background:

Zoning Code Amendment 2025 -001 (ZCA 2025 -001) rescinds Section 37 -50.250 [(Accessory Dwelling Units) (ADU)] of Chapter 37 of the Salinas Municipal Code (Zoning Code). Both Zoning Code Sections 37-10.250 and 37-50.250 were originally established pursuant to Ordinance No. 2463 (Zoning Code), which was approved by the City Council on November 7, 2006. Zoning Code Section 37-10.250 was subsequently amended by the City Council pursuant to Ordinances 2507 which was approved on May 18, 2010, No. 2581 which was approved on December 6, 2016, and No. 2605 on July 3, 2018. Zoning Code Section 37 -50.250 was also amended by above referenced Ordinance No. 2581 and No. 2626 which was approved by the Council on November 5, 2019.

State ADU Law:

On January 1, 2020, after the latest City revision to Zoning Code Section 37 -50.250, California Government Code Sections 65852.2 and 65852.22 became effective. Section 65852.2 allowed for the development of ADUs and Section 65852.22 allowed for the development of Junior Accessory Dwelling Units (JADUs). On March 25, 2024, these Government Code Sections were renamed to the following:

Government Code Sections 66314 – 66332 (ADUs)
Government Code Sections 66333 – 66339 (JADUs)
Government Code Sections 66340 – 66342 (ADU Home Sales)

Per State law, Junior Accessory Dwelling Units (JADUs) are allowed to be created within the walls of a proposed or existing single-family residence and shall contain no more than 500 square feet.

JADUs offer additional housing options. They may share central systems, contain a basic kitchen utilizing small plug-in appliances, may share a bathroom with the primary dwelling, all to reduce development costs. JADUs present no additional stress on utility services or infrastructure because they simply repurpose existing space within the residence and do not expand the dwellings planned occupancy. JADUs are only allowed for owner -occupied properties unless the owner is another governmental agency, land trust, or housing o rganization. ADUs have no owner -occupied requirements. Development of JADUs are governed by Government Code Section 66333 through 66339.

The above referenced California Government Code Sections are not consistent with the City’s current ADU Ordinance (Zoning Code Sections 37-50.250). Because of this inconsistency, since 2020, staff has processed both of ADUs and JADUs pursuant to State ADU Law and the administrative building permit process. To avoid confusion, the State Housing and Community Development Department (HCD) recommends that the City rescind the current ADU Ordinance and follow the State ADU Law and guidelines until a compliant ADU ordinance is adopted.

Page | 3

Analysis:

The rescinding of the ADU Ordinance requires that the existing ADU definitions and development regulations be modified so that they comply with State ADU Law. Currently, ADU’s in the City are defined in Zoning Code Section 37-10.250 as either “Interior” or “Other” as stated below. The revisions in the ADU definitions would remove the “Interior” and “Other” definitions and modify the ADU definition so that it is consistent with State ADU Law. In addition, the classifications of Agricultural, Residential, Public/Semipublic, and New Urbanism Zoning District use classifications have been modified so that they are consistent with the new ADU definitions and State ADU Law.

The Amendment would modify and remove the following “Accessory Dwelling Unit” definitions from Section 37-10.250 (“A” definitions) as follows (changes in strikethrough/underline format):

“Sec. 37-10.250. – “A” definitions.

Accessory Dwelling Unit. An attached or a detached residential dwelling unit defined as either an Accessory Dwelling Unit (ADU) or a Junior Accessory Dwelling (JADU) that is constructed in compliance with State ADU Law. which provides complete independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and sanitation, which is located on the same parcel as a single -family detached dwelling unit. An accessory dwelling unit must contain at least one hundred fifty square feet of floor area and may consist of an efficiency unit, as defined in Section 17958.1 of Health and Safety Code; or a manufactured home, as defined in Section 18007 of the Health and Safety Code.

Accessory Dwelling Unit, Interior. An accessory dwelling unit which is constructed in the R -L district entirely within the existing and legally created space of a single-family detached dwelling unit or accessory structure.

Accessory Dwelling Unit, Other. An accessory dwelling unit which is constructed either as a new detached accessory structure; as an addition to an existing single-family detached dwelling unit or an existing accessory structure; or entirely within the existing and legally created space of a single- family detached dwelling unit or accessory structure but not in the R-L district.

The Amendment would modify Zoning Code Section 37-30-020, Table 37-30.10, and Footnote 6 [Agricultural (A) Zoning District] as follows (changes in strikethrough/underline format):

Table 37-30.10

Agricultural (A) District Use Classifications

Land Use A Additional Use Regulations

Page | 4

Residential Uses
Accessory Dwelling Units, Other P (6)

(6) See Section 37-50.250, Accessory dwelling units,. An accessory dwelling unit shall only be permitted on a lot with a single-family detached dwelling shall be permitted pursuant to State ADU Law.

The Amendment would modify Zoning Code Section 37-30-060, Table 37-30.30, and Footnote 6 [Residential Low Density (R -L-5.5) Zoning District] as follows (changes in strikethrough/underline format):

Table 37-30.30

Residential Low District (R-L) Use Classifications

Land Use R-L-5.5 Additional Use Regulations

Residential Uses
Accessory Dwelling Units, Interior P (5)
Accessory Dwelling Units, Other P (5)

(5) See Section 37-50.250, Accessory dwelling units,. An accessory dwelling unit shall only be permitted on a lot with a single-family detached dwelling shall be permitted pursuant to State ADU Law.

The Amendment would modify Zoning Code Section 37-30-110, Table 37-30.50, and Footnote 7 [Residential Medium Density (R -M) Zoning District] as follows (changes in strikethrough/underline format):

Table 37-30.50

Residential Medium Density (R-M) Districts Use Classifications

Land Use R-M-3.6 R-M-2.9 Additional Use
Regulations
Residential Uses
Accessory Dwelling Units, Other P P (7)

(7) See Section 37-50.250, Accessory dwelling units,. An accessory dwelling unit shall only be permitted on a lot with a single-family detached dwelling shall be permitted pursuant to State ADU Law.

The Amendment would modify Zoning Code Section 37-30-160, Table 37-30.70, and Footnote 8 [Residential High Density (R-H) Zoning District] as follows (changes in striketh rough/underline Page | 5

format):

Table 37-30.70

Residential High Density (R-H) Districts Use Classifications

Land Use R-H-2.1 R-H-1.8 Additional Use
Regulations
Residential Uses
Accessory Dwelling Units, Other P P (8)

(8) See Section 37-50.250, Accessory dwelling units,. An accessory dwelling unit shall only be permitted on a lot with a single-family detached dwelling shall be permitted pursuant to State ADU Law.

The Amendment would modify Zoning Code Section 37-30-390, Table 37-30.170, delete Footnote 12 applicability to Accessory Dwelling Units and add Footnote 15 [Public/Semipublic (PS) Zoning District] as follows (changes in strikethrough/underline format):

Table 37-30.170

Public/Semipublic (PS) Use Classifications

Land Use PS Additional Use Regulations

Residential Uses
Accessory Dwelling Units, Other CUP P (12)(13)(15)

(15) Accessory dwelling units shall be permitted pursuant to State ADU Law.

The Amendment would modify Zoning Code Section 37-30-430, Table 37-30.190, and Footnote 6 [New Urbanism (NU) Zoning Districts] as follows (changes in strikethrough/underline format):

Table 37-30.190

New Urbanism (NU) Districts Use Classifications

Land Use NE (Low) NG-1
(Medium)
NG-2
(High)
VC Additional
Use
Regulations

Residential Uses
Accessory Dwelling P P P NP (6)
Page | 6

Units, Other

(6) See Section 37-50.250, Accessory dwelling units,. An accessory dwelling unit shall only be permitted on a lot with a single-family detached dwelling shall be permitted pursuant to State ADU Law.

The Amendment would also rescind Section 37-50.250 (Accessory Dwelling Units) of Chapter 37 of the Salinas Municipal Code (Zoning Code) as follows (changes in strikethrough/underline format):

“Sec. 37-50.250. - Accessory dwelling units.
(a) Purpose. The purpose of this section is to comply with the requirements of the California Government Code relating to accessory dwelling units. In the event of any conflict between this section and the California Government Code, the California Government Code shall prevail. An accessory dwelling unit conforming to the provisions of this section shall be approved ministerially within the time limits specified by Government Code Section 65852.2 or any successor provisions. (b) Where Permitted.
(1) Accessory dwelling units, interior are allowed as a permitted use in the R - L district.
(2) Accessory dwelling units, other are allowed as a permitted use in an A, R, or NU district, subject to subsection (d) below. All accessory dwelling units are permitted only on lots with one single -family detached dwelling unit and no other dwelling units.
(3) No accessory dwelling units shall be permitted in a development subject to a planned unit development permit approved under Article IV, Division 13 of Chapter 37, or any applicable predecessor or successor sections of this Code, unless accessory dwelling units are expressly authorized by such planned unit development permit.
(4) A maximum of one accessory dwelling unit shall be permitted per lot or parcel. An accessory dwelling unit shall not be sold separately from the principal dwelling unit.
(c) Development Regulations and Design Standards —Accessory dwelling unit, interior.
(1) The accessory dwelling unit must have e xterior access independent from the existing single-family detached dwelling unit.
(2) Side and rear setbacks must be determined to be sufficient for fire safety by the building official.
(3) No new or separate utility connection directly between the acces sory dwelling unit and the utility may be required.
(4) Sprinklers may not be required for the accessory dwelling unit unless they are required for the existing single-family detached dwelling unit.

Page | 7

(5) The total floor area of an accessory dwelling unit, interior, shall not exceed the greater of one-thousand two-hundred square feet or fifty percent of the existing living area of the primary residence.
(d) Development Regulations and Design Standards - Accessory dwelling unit, other.
(1) Floor Area.
(A) The total floor area of a detached accessory dwelling unit shall not exceed a maximum of one -thousand two -hundred square feet of gross floor area.
(B) The total floor area of an attached accessory dwelling unit shall not exceed a maximum of fifty-percent of the existing living area of the primary residence, not to exceed a maximum of one -thousand two- hundred square feet.
(C) Accessory dwelling units that require additional floor area for the unit are prohibited on the second floor of a single -family detached dwelling unit. Accessory dwelling units may be located within an existing second floor of a single -family detached dwelling unit subject to the requirements of subsection (c) of this section. (2) Design. The exterior design of the accessory dwelling unit sha ll be in harmony with the principal dwelling unit. This shall be accomplished through the use of building materials, architectural design, height, scale, exterior colors, and finishes that are compatible with the principal dwelling unit. Accessory dwelling units shall be designed so as not to adversely affect the character of the surrounding neighborhood. The design standards of the base zoning district shall apply. No passageway shall be required in conjunction with the construction of an accessory dwelling unit. (3) Sprinklers. Sprinklers may not be required for the accessory dwelling unit unless they are required for the existing single -family detached dwelling unit.
(e) Other Development Standards. Except as modified by this section, the accessory dwelling unit shall conform to all applicable development regulations established for single -family detached dwelling units in the underlying zoning district, including without limitation, the maximum height, required yards, minimum usable open space requirements for single-family detached dwelling units in the applicable zoning district, and distance between structures.
(f) Parking. One off-street parking space shall be provided for each bedroom in the accessory dwelling unit, and parking required for the single -family dwelling units shall be provided on the same site in accordance with Section 37-50.360, off-street parking and loading spaces regulations. A minimum of one off-street parking space shall be provided for an efficiency unit off -street parking for accessory dwelling units may be provided as tandem parking on an existing legal driveway or in setbacks, excluding the front or side -corner setbacks of a site; however off -street parking spaces for accessory dwelling units are not required in any of the following instances:

Page | 8

(1) The accessory dwelling unit is located within one -half mile of a public transit stop.
(2) The accessory dwelling unit is located within an architecturally and historically significant historic district.
(3) The accessory dwelling unit is an "accessory dwelling unit, interior" as defined in this Chapter 37.
(4) When on-street parking permits are required but not offered to the occupant of the accessory dwelling unit.
(5) When there is a car share vehicle pickup location located within o ne block of the accessory dwelling unit.

Notwithstanding the above, if the accessory dwelling unit replaces an existing garage, carport, or covered parking structure, replacement spaces must be provided to meet the requirements of Division 2 of this Chapter 37 . Such replacement spaces may be provided as garaged spaces, covered spaces, uncovered spaces on a legal driveway, tandem spaces, or mechanical parking lifts on the same lot as the primary residence. As used in this subsection (f), "driveway" shall mean a private roadway or travel way and its access point from a public street for the exclusive use of the occupants of a property and their guests.
(g) Density. An accessory dwelling unit which conforms to the requirements of this section shall not be considered to exceed the allowable density for the lot upon which it is located, and shall be deemed to be a residential use, consistent with the Salinas general plan and zoning designation for the lot. (h) Deed Restriction. The owner of the parcel of land upon which the accessory dwelling unit is proposed to be located shall execute a deed restriction, running with the land, in a form satisfactory to and approved by the city, which states that the second dwelling unit shall not be rented for terms less than thirty days, that the lot shall be developed and maintained in conformance with this section, and that the requirements of this section are binding upon any successor in ownership of the property. Such deed restriction shall be filed by the city planner for recordation by the Monterey County recorder's office prior to issuance of any building permits for the accessory dwelling unit.
(i) Administrative F ee. The city may charge an administrative fee for monitoring compliance with the provisions of this section as determined by the city council.”

The r escinding of Zoning Code Section 37 -50.250 requires the City to continue to process applications for ADUs and JADUs pursuant to State law as per Government Code Section 66316 until a City Ordinance for the processing of ADUs is approved by the State.

The revision of the “Accessory Dwelling Unit” (ADU) definitions from Zoning Code Section 37-

10.250 are proposed because they are not consistent with the State definitions of “Accessory Dwelling Unit” and “Junior Accessory Dwelling Unit”. The revisions to Zoning Code Sections 37-30.020, 37 -30-060, 37 -30-110, 37 -30.160, 37 -30.390, and 37 -30.430 are also required for Zoning Code consistency with the modified definitions and State ADU Law.

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CONCLUSION:

The proposed Zoning Code Amendment would modify “Accessory Dwelling Unit” definitions of Section 37 -10.250 (“A” definitions), modify Sections 37-30.020, 37 -30-060, 37 -30-110, 37 -

30.160, 37-30.390, and 37-30.430, rescind Section 37 -50.250 (Accessory Dwelling Units), and apply applicable State standards for the processing of Accessory Dwelling Unit ( ADU) applications. Findings in support of the Amendment are incorporated in the attached Planning Commission Resolution.

CEQA CONSIDERATION:

The environmental impacts of the project have been analyzed in accordance with the California Environmental Quality Act (CEQA). The proposed Zoning Code Amendment is categorically exempt (Class 5) from further environmental analysis per CEQA Guidelines Section 15305 (Minor Alterations in Land Use Limitations).

TIME CONSIDERATION:

The proposed project is a request for a Zoning Code Amendment, which is a legislative act and not subject to the Permit Streamlining Act (PSA).

ALTERNATIVES AVAILABLE TO THE COMMISSION:

The Planning Commission has the following alternatives:

1) Affirm the findings set forth in the attached Resolution, recommending that the City Council find the Amendment exempt from CEQA and introduce and then adopt the Amendment with modifications; or

2) Find that the Amendment is not appropriate and establish findings at the public hearing recommending that the City Council deny the Amendment.

ATTACHMENTS:

Draft Planning Commission Resolution
Draft City Council Ordinance

I:\ComDev\Planning Share Space\Zoning Code Amendments\ZCA 2025-001 - Rescind ADU Ordinance (Sec. 37-50.250)\PC Staff Report - TW edits.docx
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-580, Version: 1
City Manager Employment Agreement Amendment No. 1
Approve a Resolution authorizing the Mayor to sign an Amendment to the Employment Agreement with the Salinas City Manager Rene L. Mendez and adjust the Classification - Salary Schedule, effective December 22, 2025.

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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: DECEMBER 9, 2025
FROM: MAYOR DENNIS DONOHUE
TITLE: CITY MANAGER EMPLOYMENT AGREEMENT AMENDMENT NO. 1

RECOMMENDED MOTION:

It is recommended that the City Council approve the attached resolution authorizing the Mayor to sign an Amendment to the Employment Agreement with the Salinas City Manager René L.

Mendez and adjust the Classification – Salary Schedule, effective December 22, 2025.

EXECUTIVE SUMMARY:

On March 19, 2024, the City Council approved an Employment Agreement between t he City of Salinas and City Manager Rene L. Mendez . The Agreement provides for an annual review of performance and compensation. The City Council completed the annual review of the City Manager and now moves to adjust the annual compensation and adjust the Classification – Salary Schedule with the corresponding increase.

BACKGROUND:

Rene Mendez was hired in May 2024 as the Salinas City Manager after the City Council conducted a nationwide search. Mr. Mendez and the City of Salinas entered into an Employment Agreement in March 2024 that includes an annual compensation of $300,000 with the term expiring in May 2027.

The City Council met in Closed Session on November 4, November 18 , and on December 2 at which time Mr. Mendez’s performance review was completed. The parties now wish to amend the compensation to reflect an annual salary of $3 15,000, effective December 22, 2025 . This reflects an annual increase of $15,000. All other terms of the Employment Agreement remain in place.

CEQA CONSIDERATION:

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

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CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No, Government Code §84308 does not apply.

STRATEGIC PLAN INITIATIVE:

The proposed action supports the City Council 2025 Strategic Goal of City Services ensuring fiscal responsibility and finance management.

FISCAL AND SUSTAINABILITY IMPACT:

The annual fiscal impact to the General Fund is estimated to be approximately $15,000 in base salary with a prorated amount of approximately $8,125 for the remainder of this fiscal year. The cost will be absorbed in the City’s operating budget.

Fund

General Ledger Number
(Operating/CIP)
General Ledger Account
Name

Remaining Budget
Appropriation
Amount Requested
1000 12.1111-61.1100 Salaries & Benefits Regular
Pay
$351,714 $8,125

ATTACHMENTS:

Resolution
Employment Agreement
Amendment No. 1

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RESOLUTION NO. (N.C.S.)

A RESOLUTION OF THE SALINAS CITY COUNCIL AUTHORIZING THE MAYOR TO EXECUTE AN EMPLOYMENT AGREEMENT AMENDMENT NO. 1 BETWEEN THE CITY OF SALINAS AND RENE L. MENDEZ AND APPROVING

MODIFICATION OF THE CLASSIFICATION-SALARY SCHEDULE

WHEREAS, on March 19, 2024 , the Salinas City Council approved the Employment Agreement between the City of Salinas and City Manager Rene L. Mendez; and WHEREAS, the City Council and City Manager have completed the annual employment performance evaluation process; and
WHEREAS, the City of Salinas desires to make changes to the Employment Agreement; and
NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council authorizes the Mayor to execute an Amendment to the Employment Agreement to reflect an annual compensation of $315,000 in base wages of the City Manager, effective December 22, 2025. It is further resolved that the City Classification-Salary Schedule shall be modified consistent with such increase.

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

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

_______________________
Dennis Donohue, Mayor

ATTEST:
_________________________
Patricia M. Soratos, City Clerk

1 AMENDMENT NO. 1 TO THE EMPLOYMENT AGREEMENT

BETWEEN THE CITY OF SALINAS
AND RENÉ L. MENDEZ, CITY MANAGER

The Employment Agreement between the City of Salinas and City Manager Ren é L.

Mendez, approved by the City Council on March 19, 2024, is hereby amended as follows.

Section 7.1 of the Employment Agreement is amended to reflect annual compensation of Three Hundred Fifteen Thousand Dollars ($3 15,000), effective December 22, 2025 , and payable on a bi-weekly basis.

CITY OF SALINAS

Date: By: ___________________________
Dennis Donohue

RENE L. MENDEZ

Date: By: ___________________________
René L. Mendez

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-581, Version: 1
Salinas Police Officers Association and Police Managers Association Memoranda of Understanding; Modification to Classification - Salary Schedule
Approve a Resolution authorizing the City Manager to sign the Memoranda of Understanding (MOU) with the Salinas Police Officers Association (SPOA) and the Police Managers Association (PMA) for terms ending December 31, 2027, and December 31, 2028, respectively, and approving modification to the Classification - Salary Schedule.

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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: DECEMBER 9, 2025
DEPARTMENT: ADMINISTRATION
FROM: RENE MENDEZ, CITY MANAGER
BY: MARINA HORTA -GALLEGOS, HUMAN RESOURCES DIRECTOR

TITLE: SALINAS POLICE OFFICERS ASSOCIATION AND POLICE
MANAGERS ASSOCIATION MEMORANDA OF UNDERSTANDING;
MODIFICATION TO CLASSIFICATION – SALARY SCHEDULE

RECOMMENDED MOTION:

A motion to approve a Resolution authorizing the City Manager to sign the Memoranda of Understanding (MOU) with the Salinas Police Officers Association (SPOA) and the Police Managers Association (PMA) for terms ending December 31, 2027, and December 31, 2028, respectively, and approving modification to the Classification – Salary Schedule.

EXECUTIVE SUMMARY:

It is recommended that the City Council approve a Resolution authorizing the City Manager to sign new Memoranda of Understanding with the Salinas Police Officers Association and with the Police Managers Association and authorizing modification to the Classification – Salary Schedule.

BACKGROUND:

The Memoranda of Understanding between the City and the SPOA and SPMA expire on December 31, 2025. Representatives of the City and the two units met and conferred in good faith through the collective bargaining process and have reached tentative agreements on the terms of new Memoranda of Understanding consistent with City Council direction.

The attached Memoranda of Understanding are a result of several weeks of good faith negotiations between the parties and expect this will assist recruitment and retention efforts.

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Salinas Police Officers Association:
 Term: January 1, 2026 – December 31, 2027
 Wages: 3% salary increase effective January 2026; 2% market adjustment January 2026; 2% salary increase January 2027; 2% market adjustment July 2027  Premium for special assignment – 5% for Drone pilot and SWAT  Master officer pay: add SWAT
 Night shift differential: increase from $23.45 to $25.00 per shift  Other Terms: Language/process clean-up

Police Managers Association
 Term: January 1, 2026 – December 31, 2028
 Wages: One step (5%) salary adjustment on the Salary Schedule, effective January 2026; 3% increase January 2027; 3% increase January 2028
 Bilingual premium: maintain 5%
 Night shift differential: increase from $23.45 to $25.00 per shift  Compensatory time off: increase cap from 120 to 160 hours  Other Terms: Language/process clean-up

CEQA CONSIDERATION:

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

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No.

STRATEGIC PLAN INITIATIVE:

This proposed action meets the City Services Council goal ensuring fiscal responsibility and financial management.

DEPARTMENTAL COORDINATION:

Administration, Finance, Human Resources, and Legal collaborated in this process.

FISCAL AND SUSTAINABILITY IMPACT:

The projected cumulative cost of the SPOA adjustments over the term of the MOU is approximately $662,546 in FY 2025-26 (6 months), $1,692,202 in FY 2026 -27, and $1,029,656 in FY 2027 -28 (6 months) for a total of $3,384,404.

The projected cumulative cost of the PMA adjustments over the term of the MOU is approximate ly $203,950 in FY 2025 -26 (6 months) , $534,967 in FY 2026 -27, $792,913 in FY 2027 -28, and $461,896 in FY 2028-29 (6 months) for a total of $1,993,727.

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Fund

General Ledger Number
(Operating/CIP)
General Ledger Account
Name

Remaining Budget
Appropriation
Amount Requested
1000-
1200
Police Department (SPOA) Salaries & Benefits $0 $662,546 1000-
1200
Police Department (PMA) Salaries & Benefits $0 $203,950

ATTACHMENTS:

Resolution
Salinas Police Officer Associations – MOU
Police Managers Association – MOU

Page | 4
RESOLUTION NO. _________ (N.C.S.)

A RESOLUTION APPROVING THE MEMORANDA OF UNDERSTANDING FOR THE

SALINAS POLICE OFFICERS ASSOCIATION AND POLICE MANAGERS

ASSOCIATION AND AUTHORIZING THE CITY MANAGER TO SIGN THE

MEMORANDA OF UNDERSTANDING AND AUTHORIZING MODIFICATION TO THE

CLASSIFICATION - SALARY SCHEDULE

BE IT RESOLVED BY THE CITY COUNCIL OF SALINAS that the City Manager is hereby authorized and directed for and on behalf of the City of Salinas to sign the Memoranda of Understanding for the Salinas Police Officers Association and for the Police Managers Association and authorizing the corresponding modification to the Classification-Salary Schedule.

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

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
____________________________________
Dennis Donohue, Mayor

ATTEST:
______________________________
Patricia M. Soratos, City Clerk

1 PMA Tentative Agreement

The City of Salinas and the Salinas Police Managers Association (PMA) tentatively agree to the following tracked changes to their Memorandum of Understanding (MOU), subject to ratification of PMA membership and approval of City Council.

SECTION 1 – PREAMBLE

This Memorandum of Understanding is entered into by the City of Salinas (“City”) and the Police Managers Association (“Association”). This Memorandum of Understanding applies to all regular personnel in Job Classifications found in Appendix A attached hereto. This Memorandum of Understanding is subject to Sections 3500 -3510 of the Government Code of the State of California otherwise known as the Meyers -Milias-Brown Act (“MMBA”), and the City of Salinas Charter and Municipal Code.

SECTION 2 – NO ABROGATION OF RIGHTS

The parties acknowledge that the City rights and employee rights as indicated under Chapter 25, Sections 31 and 32, and all applicable State or Municipal laws, the City Personnel Rules and Regulations, the City Personnel Manual, and the Salinas Police Department Policy Manual, and the rights of the City Council are neither abrogated nor made subject to the meet and confer process by the adoption of this Memorandum of Understanding.

The City agrees to act in accordance with the provisions of the Public Safety Officers Procedural Bill of Rights as currently provided in Government Code Sections 3300 et seq.

SECTION 3 – PAST PRACTICES

The parties agree that this Memorandum of Understanding supersedes any past practice covered by this Memorandum of Understanding and any other prior written agreement agreed to by the parties not addressed in this Memorandum of Understanding.

SECTION 4 – NO DISCRIMINATION

The City and the Association will cooperate in pursuing a policy of no discrimination. Unit employees shall have the right to form, join and participate in the activities of employee organizations of their own choosing for the purpose of representation on all matters of employer -employee relations including wages, hours, and other terms and conditions of employment. No such employee shall be interfered with, restrained, coerced or discriminated against by the City or the Association because of his/her exercise of the rights established by law.

SECTION 5 – RECOGNITION MATTERS

A. Recognition

2 Pursuant to Sections 3500 -3510 of the Government Code of the State of California, and Chapter 25, Section 34 of the Salinas Municipal Code, the City has certified the Association as the recognized employee organization for full -time regular employees assig ned to certain classifications designated in Appendix A (“Unit”).

B. Dues Checkoff

The City agrees to continue to allow dues and other mutually agreed upon payroll deductions to be deducted from the pay of employees who voluntarily authorized such deductions in writing on a form provided by the Association. Such deductions shall be made in a lump sum on a monthly basis and shall be so remitted to the Association. The City shall not deny consent for reasonable payroll deductions, nor shall the Association unreasonably request payroll deductions.

The Association shall indemnify and defend and hold the City of Salinas harmless against any claims made and against any suit instituted against the City of Salinas on account of collection of Association dues and other mutually agreed upon payroll deducti ons. In addition, the Association shall refund to the City of Salinas any amounts paid to it in error.

SECTION 6 – PAY RATES AND PRACTICES

A. Wages

1. Effective in the f irst full pay period of January 20, 20265 following ratification and approval of this Memorandum of Understanding (“MOU”) , wages for eligible Unit members will be adjusted as reflected in the receive a 4% salary schedule attached as Appendix Aadjustment.

2. Effective in the first full pay period of January 2027, Unit members will receive a 3% salary adjustment.

1.3.Effective in the first full pay period of January 2028, Unit members will receive a 3% salary adjustment.

B. Bilingual Premium

A premium of five percent (5%) of base salary shall be paid to Police Sergeants and Police Commanders in recognition that they are assigned by management to routinely and consistently speak and use Spanisha language other than English in the course of the employee's duties. This 5% premium is grandfathered for employees receiving this premium before January 1, 20 25. An employee will be paid $75 per pay period for any bilingual premium awarded on or after January 1, 20 25. This section is subject to admini strative discretiondirection.

One hundred dollars ($100) per month shall be paid to Deputy Police Chiefs who routinely and consistently speak and use Spanisha language other than English in the course of his/her job duties, subject to administrative direction.

3 C. Special Assignment Pay

The City has established two (2) categories of special assignment pay.

1. Temporary Upgrade Pay (Special Assignment Pay While Working Out of Class). An employee who is assigned by the Chief of Police to all the duties of a higher classification, while relieved of the duties of the employee’s current position, shall receive a ten percent (10%) Temporary Upgrade Pay. Such pay shall be based on the employee’s established base salary.

2. Special Assignment Pay While Performing Additional Responsibilities. An employee who is assigned by the Police Chief a significant increase in duties and responsibility in his/her classification may receive a ten percent (10%) special assignment pay. Such pay is authorized on recommendation of the Chief of Police with approval of the Human Resources Director. It may be paid for special assignments of not less than two (2) weeks nor more than three (3) months duration. The City Manager may approve additional special assignment pay beyond three (3) months for exceptionally difficult long-range assignments.

Consistent with Government Code section 20480, an out-of-class appointment to an upgraded position or higher classification during recruitment for a vacant position shall not exceed a total of 960 hours in each fiscal year.

D. Overtime

1. Consistent with current practice, employees in the rank of Sergeant who work beyond their normal shift schedule shall be compensated at time and one-half (1½) for the excess hours worked.

2. Pursuant to 29 USC section 207(k), for purposes of FLSA overtime, the work period is 28 days.

E. Court Pay for Sergeants

1. Off-duty court pay for Sergeants will be four (4) hours pay or comp time at time and one half (1½) or time and one half (1½) for actual hours in court, whichever is greater, except as modified in 2 and 3 below.

2. If one (1) officer makes two (2) or more court appearances in one (1) day and these appearances are:
a. Scheduled at least four (4) hours apart, the officer shall receive not less than four (4) hours pay at time and one half (1½) for each appearance.

b. Scheduled less than four (4) hours apart, the officer shall be compensated for a minimum of four (4) hours pay at time and one half ( 1½) or time and one half (1½) for all hours in court, whichever is greater. This includes all subpoenas

4 within the four (4) hour time period with the overtime period commencing at the appearance time of the earliest subpoena. Court compensation will be no more than eight (8) hours per day (two (2)-four (4) hour minimums) unless more hours are actually worke d. In no case will there be double compensation for overlapping hours.

3. If a court appearance is scheduled within two (2) hours of the beginning of the officer’s shift, compensation shall be as follows:

a. Time and one half for hours from end of shift through the completion of the court appearance, (example: If the officer ends his/her shift at 0800 hours (8:00 a.m.) and has court from 0830 hours (8:30 a.m.) to 0900 hours (9:00 a.m.) = 1 hour, 1000 hours (10:00 a.m.) to 1045 hours (10:45 a.m.) = four (4) hours)

OR,

b. Time and one half ( 1½) for hours from time of subpoena until beginning of shift, (example: 1445 hours (2:45 p.m.) to 1700 hours (5:00 p.m.) = four (4) hours; 1500 hours (3:00 p.m.) to 1700 hours (5:00 p.m.) = two (2) hours, if the officer starts his/her shift at 1700 hours).

4. The Department shall by 1800 hours (6:00 p.m.) of the preceding court day have available in the Watch Commander ’s office a list of those officers whose court appearances have been canceled for the next court day. It is the responsibility of the subpoenaed officer to check the status of any subpoena, as provided in the Salinas Police Department Policy Manual, after 1800 hours (6:00 p.m.) on the prior court day to ascertain if a court appearance has been canceled.

No compensation shall be given for a properly canceled court appearance.

In the event of a court cancellation entered into the City notification systems after 6:00 p.m. on the preceding day but before 5:00 a.m. on the court day, the officer shall receive a two (2) hour minimum at straight time.

In the event of a court cancellation entered into the City notification systems at or after 5:00 a.m. on the court day, the officer shall receive the four (4) hour minimum set forth in Paragraph 1, above, if not otherwise scheduled to work during the time of the cancelled appearance. The applicable court pay is determined by when the cancellation is entered into the City notification system, not the time the officer checks the system.

5. At their option, employees may choose to work in the Police Department during court lunch breaks if they are required to return to court after the court lunch break. This is contingent on the Watch Commander having a work assignment for the officer. If this be the case, the officer must have the Watch Commander sign the subpoena forms indicating such assignment.

5 F. Night Shift Differential

Night shift differential at the rate of $2 53.0045 per shift shall be paid to employees who are routinely and consistently scheduled to be on duty at midnight. Being on duty at midnight includes employees whose assigned shift either ends or begins at midnight. No night shift differential will be paid for overtime hours worked.

G. Emergency Callback

Police Commanders shall be eligible for emergency callback overtime. Emergency callback overtime is not paid for attendance at training, meetings, or scheduled events. Emergency callback overtime shall be compensated at time and one -half (1½), up to a maximum of ten (10) hours or ten (10) hours and forty (40) minutes (depending on assigned schedule) per incident, subject to a minimum overtime callback of two (2) hours (three hours compensation).

H. Compensatory Time Accrual

The maximum compensatory time accrual for employees represented by the Police Management Association shall be 1 620 hours. Comp time accrual is limited to overtime worked covering regular shifts; it does not accrue for working special events or grant -funded activities or other situations for which the City may seek reimbursement and does not accrue for holiday pay.

I. Investigations Supervisor On-Call Pay

On-call pay of $ 5.00 per hour shall be provided to the Investigations Supervisor as assigned by the Division Commander. The on-call compensation shall commence at the conclusion of the employee’s work shift.

SECTION 7 – BENEFITS

A. Health, Dental, and Vision Plan Benefit

The City shall contribute toward the health premiums for coverage under the Peace Officers Research Association of California (PORAC) plan or another City -sponsored PERS plan of the employee’s choice, for which the employee is eligible, as described below.

Continuing through December 20 25, the City shall contribute an amount toward monthly health benefit premiums for Unit employees equal to 95% of the PORAC premium for the level of coverage the employee has selected, up to a maximum of 95% of the cost of the premium for the PERS Platinum plan.

Effective in January 2026, the City shall contribute an amount toward monthly health benefit premiums for Unit employees equal to 94% of the premium for the level of coverage the employee has selected, up to a maximum of 94% of the cost of the premium for the PORAC plan.

6 The employee shall pay for premium costs above the City’s contribution through payroll deductions.

The City will continue with the full amount of premiums for current supplementary dental and vision plans available to City employees and eligible dependents throughout the term of this MOU.

Employees enrolled in the City’s medical program under the California Public Employees’ Medical and Hospital Care Act (“PEMHCA”) receive a contribution by the City equal to the statutory minimum monthly contribution under PEMHCA. The City contribution amo unts described above shall include the PEMHCA statutory minimum contribution.

In the event that new legal requirements of the Affordable Care Act (ACA) are effective during the term of this MOU, the parties agree to re -open on the limited subject of achieving legal compliance with the ACA.

An employee may elect to waive the City’s health insurance coverage, if the employee complies with the following conditions:

1. The employee and all individuals in the employee’s tax family have alternative Minimum Essential Coverage as defined by the ACA through a provider other than Covered California; and

2. The employee provides affirmation or proof to Human Resources of the alternative Minimum Essential Coverage at hire, if applicable, and annually during the City’s health insurance open enrollment period.

B. Retiree Medical Benefit

Unit members who retire from the City and qualify as “annuitants” under PEMHCA are enrolled by CalPERS in the applicable group health plan as a retiree. As required by applicable law, annuitants must enroll in Medicare at age 65 or as soon as they become eligible.

The City will pay (1) the PEMHCA minimum contribution for annuitants, and (2) twenty-five (25%) percent or $100 per month (whichever is less) for reimbursement of the medical insurance premium for employees retiring from the City who qualify as annuitants and who have been employed with the Salinas Police Department since before July 1, 2019 , subject to proof of premium payment by annuitants. The City payment of the additional benefit beyond the PEMHCA minimum contribution shall be discontinued when the em ployee becomes eligible for Medicare coverage or after ten (10) years, whichever is sooner.

During the term of this MOU, the City will administer employee contributions to the PORAC Retiree Medical Trust at the request of the Association. The parties agree that this will be an employee-funded benefit at no expense to the City.

C. Long Term Disability

7 The City shall contribute to the City sponsored Long Term Disability Plan the full cost of the 60% - no maximum monthly benefit program.

D. Life Insurance

The City shall provide term life insurance in an amount equal to the employee ’s base salary, up to $150,000, for each regular employee represented in the Unit.

E. Tuition Reimbursement

An employee shall be allowed up to five hundred dollars ($500) per fiscal year for eligible educational expenses upon successful completion of an approved academic course of study and/or individual course of study approved by the Chief of Police and the Hu man Resources Director. Eligible expenses are defined as costs for classes which meet the following criteria:

• Approval is obtained prior to attending class

• Are directly related to an employee's job duties

• Receive college units, POST training credit, CEU credit, or are offered/presented by a bona fide, recognized firm or institution with direct knowledge of an experience in the curriculum offered

• For which class and study time is outside of the employee’s work hours

• For which successful completion (academic grade of C or better or a certificate of completion) is provided. Reimbursement will not be made without such documentation.

• Reimbursement for training classes, seminars and workshops which are not part of an academic course of study is limited to the cost of registration only. Expenses for lodging, meals, travel and other related expenses are not reimbursable under this program.

• Expenses for books, class fees, and/or class supplies for college classes which are part of an academic course of study will be eligible for reimbursement under this program.

F. Uniform Allowance

The City shall pay twelve hundred dollars ($1200) per calendar year for uniform replacement and maintenance. The uniform allowance shall be paid at the rate of one hundred ($100) per month.

G. Educational Incentive

8 1. An educational incentive in the amount of two and a half percent (2.5%) of base pay will be paid to a Unit member with an associate’s degree (AA/AS) from an accredited college or university . The AA/AS educational incentive does not stack or carry forward; it is not paid in addition to the educational incentives described below.

2. An educational incentive in the amount of five percent (5%) of base pay will be paid to a Unit member with a bachelor’s degree (BA/BS) from an accredited college or university. The BA/BS educational incentive does not stack or carry forward; it is not paid in addition to the educational incentive described below.

3. An educational incentive in the amount of seven and a half percent (7.5%) of base pay will be paid to a Unit member who holds a graduate degree (MA/MS/JD) from an accredited college or university. The total amount of educational incentive is capped at seven and a half percent (7.5%).

To qualify for educational incentives, employees must submit proof of degree to the Human Resources Director. These incentives are effective upon approval by the Human Resources Director, no sooner than the first full pay period following approval of this MOU; no retroactive educational increases will be paid.

H. Residency Stipend

Employees who maintain their legal residence within the corporate limits of the City of Salinas shall receive a monthly residency stipend payable on a biweekly basis. The stipend shall be $200 per month.

I. PERS Retirement Program

1. Classic Employees

The City shall provide the PERS Police Public Safety Retirement Program 3% @ 50 benefit for employees hired before July 1, 2011. The City provides the 3% @ 55 formula for employees hired on or after July 1, 2011. Employees shall pay the employee share of nine (9%) percent.

PERS contributions contained in this paragraph shall be provided consistent with Government Code section 20516(f). Effective in the first full pay period followin g approval of this MOU or as soon as administratively feasible thereafter, each classic employee in the classifications of Police Sergeant and Police Commander shall contribute an additional two percent (2%) toward the employer contribution to his/her pension benefit. Effective January 2018, each classic employee in the classifications of Police Sergeant and Police Commander shall contribute an additional one percent (1%) toward the employer contribution to his/her pension benefit. Effective in the first full pay period of July 2018, classic employees in the classification of Deputy Chief shall contribute an additional three percent (3%) toward the employer contribution to his/her pension benefit.

9 2. New Members

The formulas above do not apply to persons who are defined as “new members” under the Public Employees’ Pension Reform Act of 2013 (“PEPRA”).

“New members” under PEPRA are subject to all applicable PEPRA provisions, including the 2.7% @ 57 formula. Each new member will contribute 50% of the normal cost of his/her benefit as determined by CalPERS.

J. Longevity Pay

Effective January 20, 2025, employees who have attained ten (10) years of regular service with the City of Salinas Police Department shall receive a three percent (3%) longevity pay incentive.

Employees who have attained twenty (20) years of regular service with the City of Salinas Police Department shall receive a longevity pay incentive of an additional five (5%) percent base salary in recognition of their time in service for a total of eight percent (8%) in longevity pay.

No employee shall receive more than eight percent (8%) in longevity pay. Longevity pay is effective in the first full pay period following the employee’s anniversary date.

K. Blood Donation

An employee may be granted paid release time of up to a maximum of one (1) hour for donating blood during scheduled hours of work. The length of the leave must be approved in advance by the supervisor. Approval or denial of this leave shall be within the sole discretion of the Department.

SECTION 8 – LEAVE PROVISIONS

A. Holidays

1. Fixed Holidays Date

New Year’s Day January 1
Martin Luther King Birthday Third Monday in January
Lincoln’s Birthday February 12
Presidents’Washington's DBirthday Third Monday in February Cesar Chavez Day March 31
Memorial Day Last Monday in May
Juneteenth June 19
Independence Day July 4th
Labor Day First Monday in September
Veteran's Day November 11

10 Thanksgiving Day Fourth Thursday in November
Friday after Thanksgiving Day after Thanksgiving
Christmas Eve December 24
Christmas Day December 25

2. Effective June 18, 2024, Cesar Chavez Day and Juneteenth are recognized holidays for this Unit.

3. Every day appointed by the President or Governor for a public day of mourning, Thanksgiving, or holiday, when ratified by the Mayor or the Salinas City Council.

4. All holidays are calculated as eight (8) hours.

5. Holiday Pay: In recognition of the fact that employees assigned to patrol with rotating schedules are normally required to work on a fixed holiday because they work in positions that require scheduled staffing without regard to holidays, in lieu of receiving time off for fixed holidays, employees with rotating schedules will be paid 4.31eight (8) hours of pay in each biweekly paycheck (1 12 hours per year)for each of the fixed holidays listed above, as additional pay during the pay period in which the holiday falls.

This pay consists of base pay plus any applicable bilingual premium, temporary upgrade pay, special assignment pay (additional duties) , educational incentive , and longevity pay. If an employee was scheduled to work on a holiday, the employee must use accrued annual leave or compensatory time off for any approved leave on the holiday.

6. Holiday Leave: Unit employees who are not normally required to work on a holiday (generally employees with non-patrol assignments, such as to the Detective Division, Personnel & Training, or Internal Affairs) are paid eight (8) hours of holiday leave at straight time for time off on each holiday listed above.

B. Annual Leave

Annual Leave shall be as provided in the Personnel Manual. Annual Leave accrues over the course of a year as follows:

1st through 5th year 176 hours per year
6th through 10th year 216 hours per year
11th through 15th year 232 hours per year
16th through 17th year 240 hours per year
18th through 19th year 248 hours per year
20th through 24th year 256 hours per year
25th year and later 264 hours per year

C. Bereavement Leave

An employee represented by the Association shall be entitled to four (4) days of leave with

11 pay, plus one unpaid day (which may be compensated using annual leave) , for the death of a family member. All provisions of the Personnel Manual regarding Bereavement Leave shall apply.

Family member includes:

Husband Mother-in-Law
Wife Father-in-Law
Father Sister-in-Law
Mother Brother-in-Law
Child Legal Guardian
Brother Step-Child
Sister Step-Father
Grandparent Step-Mother
Grandchild Step-Mother-in-Law
Step-Father-in-Law Registered Domestic Partner

D. Family & Medical Leave

In accordance with the California Family Rights Act and the federal Family and Medical Leave Act, the City of Salinas Family & Medical Leave Policy is detailed in the Administrative Memorandum 94-1, as revised.

SECTION 9 – WORKING CONDITIONS

A. Grievance/Disciplinary Action Appeal Procedure

The Grievance/Disciplinary Action Appeal Procedure for employees in this Unit is set forth in the Personnel Manual. No employee shall suffer retaliation resultant from use of this procedure.

B. Schedules

Personnel assigned to patrol are normally scheduled to work 10-hour and 40-minute shifts. The Chief of Police may authorize other schedules as appropriate, including a four -ten plan with four 10-hour days each week. The Police Chief has the right to change and implement work schedules for all unit personnel, consistent with the needs of the Salinas Police Department and the community subject to completing any legally required bargaining under the MMBA.

SECTION 10 – COMMITTEES

A. Safety Committee

The City and the Association shall cooperate in pursuing safe working practices. In the interest of increasing safety within City operations and consistent with existing City policy, the Association may appoint one (1) member to serve on any safety commit tee within the scope of Association representation. The rotation policy (six -month rotation, 1 -year term) shall

12 apply. Recommendations of the Safety Committee shall be referred to the City Manager for review and action if deemed appropriate by the City Manager.

B. Deferred Compensation Committee

The City's Deferred Compensation Committee may include one (1) employee designated by the Association. The designated employee must be a participant in the City's Deferred Compensation Program with Trust Deed Program investments.

SECTION 11 – TERM

The term of this Memorandum of Understanding shall commence January 1, 20 265, and shall expire December 31, 20285, except as otherwise provided in this Memorandum of Understanding. Proposals for change and/or renewal shall be submitted by October 1, 20285.

Dated __________________________ Dated _________________________

CITY OF SALINAS SALINAS POLICE MANAGERS ASSOCIATION

_____________________________ ____________________________ By: René Mendez By: Ruben Sanchez
City Manager President

13 APPENDIX A
[update salary schedule]

1 POA Tentative Agreement

The City of Salinas and the Salinas Police Officers Association (POA) tentatively agree to the following tracked changes to their Memorandum of Understanding (MOU), subject to ratification of POA membership and approval of City Council.

SECTION 1 – PREAMBLE

This Memorandum of Understanding is entered into by the City of Salinas (“City”) and the Salinas Police Officers Association (“Association”). “Employee” for the purpose of this Memorandum of Understanding means all regular personnel in Job Classifications found in Appendix A attached hereto. This Memorandum of Understanding is subject to Sections 3500 -3510 of the Government Code of the State of California, otherwise known as the Meyers-Milias-Brown ("MMB") Act, and the City of Salinas Charter and Municipal Code.

SECTION 2 – NO ABROGATION OF RIGHTS

The parties acknowledge that the City rights and employee rights as indicated under Chapter 25, Sections 31 and 32, of the Salinas Municipal Code, and all applicable state or municipal laws, the City Personnel Manual, the Salinas Police Department Policy M anual, and the rights of the City Council are neither abrogated nor made subject to the meet and confer process by the adoption of this Memorandum of Understanding.

The City also agrees to act in accordance with the provisions of the Public Safety Officers Procedural Bill of Rights as provided in Government Code Sections 3300, et seq.

SECTION 3 – PAST PRACTICES

The parties agree that this Memorandum of Understanding supersedes any past practice covered by this Memorandum of Understanding but does not affect any other written agreements agreed to by the parties not addressed in this Memorandum of Understanding. S uch prior written agreements shall continue in full force unless they no longer apply.

SECTION 4 – NO DISCRIMINATION

The City and the Association will cooperate in pursuing a policy of no discrimination. Unit employees shall have the right to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation o n all matters of employer -employee relations including wages, hours, and other terms and conditions of employment. No such employee shall be interfered with, restrained, coerced, or discriminated against by the City or the Association because of his/her exercise of the rights established by law.

Employees electing not to join the Association may not be represented by the Association or its affiliated representative. An employee not joining the Association is exercising his or her rights to self-representation.

2 Nothing in this section prevents the Association and its representative from representing its members in accordance with the Memorandum of Understanding, state and federal law, and the City of Salinas Personnel Manual.

SECTION 5 – RECOGNITION MATTERS

A. Recognition

Pursuant to Sections 3500 -3510 of the Government Code of the State of California, and Chapter 25, Section 37, of the Salinas Municipal Code, the City has certified the Association as the recognized employee organization consisting of regular employees fill ing classes designated in Appendix A.

B. Dues Collection

The City shall deduct Association membership dues in an amount designated by the Association, and any other mutually agreed upon payroll deduction from the pay of member employees.

The Association shall indemnify and defend and hold the City of Salinas harmless against any claims made and against any suit instituted against the City of Salinas on account of collection of Association dues and other mutually agreed upon payroll deductions. In addition, the Association shall refund to the City of Salinas any amounts paid to it in error upon presentation of supporting evidence.

SECTION 6 – PAY RATES AND PRACTICES

A. Wages

1. Effective in the first full pay period of January 2026 following ratification and approval of this Memorandum of Understanding (“MOU”), bargaining unit members will receive a 3.0% cost-of-living adjustment plus 2.0% market adjustment, for a total of 5.0%4.0% increase to the salary schedule.

2. Effective in the first full pay period of January 20275, bargaining unit members will receive a 2.0% increase to the salary schedule.

3. Effective in the first full pay period of July 2027, bargaining unit members will receive a

2.0% increase to the salary schedule. The Job Classification/Salary Schedule is attached as Appendix A. Effective in the first full pay period following ratification and approval of this MOU, the Salary Schedule removes the lower bottom step for employees hired after July 1, 2011, and adds a top step (eligibility for Step 7 is limited to members who have been at Step 6 for at least 12 months).

B. Bilingual Premiumay

3 A premium pay of five percent (5%) of base salary shall be paid to an employee assigned by management to speak and use Spanisha language other than English in the course of the employee's duties , effective in the first full pay period following approval by Human Resources. This section is subject to administrative direction.

C. Special Assignment Pay

The City has established the following categories of special assignment pay.

1. Temporary Upgrade Pay (Special Assignment Pay While Working Out of Class). An employee who is assigned by the Chief of Police to perform all the duties of a higher vacant position and classification for more than eighty (80) consecutive regular work hours, and for a limited duration (up to 960 hours each fiscal year), during recruitment for a regular appointment to the vacant position , without maintaining the duties of his/her current position, shall receive a five percent (5%) Temporary Upgrade Pay beginning on the eighty-first (81st) consecutive hour of work while so assigned. Such pay shall be based on the employee's established base salary.

2. Special Assignment Pay While Performing Additional Responsibilities. An employee who is assigned by the Chief of Police a significant increase in duties and responsibility in his/her classification may receive a ten percent (10%) special assignment pay. Such pay is authorized on recommendation of the Chief of Police with approval of the Human Resources Director City Manager. It may be paid for special assignments of not less than two (2) weeks nor more than three (3) months duration. The City Manager may approve additional special assignment pay beyond three (3) months for exceptionally difficult long-range assignments.

D. Differentials/Premiums

The Police Chief may make special assignments in his/her discretion. The following premiums are effective in the first full pay period following notice to Human Resources of an assignment; no retroactive payment of premiums is owed. Premiums are calculated at 5% of base pay.

1. Motorcycle Patrol Premium – 5%

A unit employee routinely and consistently assigned by management to operate and/or patrol on motorcycle duty shall receive a Motorcycle Patrol Premium of five percent (5%) above current step subject to administrative direction.

Employees so assigned shall be reimbursed for the purchase of motorcycle boots and helmets as needed. Need shall be defined by management. The City will provide reasonably required material for cleaning and maintenance of the motorcycle as defined by the City. All cleaning and maintenance must be performed during normal work hours.

4 2. Canine Officer Premium – 5%

A unit employee routinely and consistently assigned by management to handle, train, and board a canine shall receive a Canine Officer Premium of five percent (5%) above current step, in the first full pay period following training and assignment with a canine in the field, subject to administrative direction.

The City and the Association reasonably approximate that canine officers spend four (4) hours per workweek, while otherwise off duty, walking, grooming/cleaning, feeding, training, and otherwise caring for and maintaining the canine. Four (4) hours per workweek at one and a half (1½) times the employee’s hourly rate is paid for such time, in addition to the 5% premium described above. This additional compensation is intended to compensate for all off-duty care of the canine and related activity; payment will be processed automatically during the assignment, without a need for overtime slips. In the event of a medical emergency or other unusual circumstance requiring extraordinary care for the canine, the canine officer must notify a supervisor as soon as possible of any additional time required.

In addition, veterinarian fees, food costs, and other reasonable expenses for the upkeep of the canine are reimbursed upon proper request for reimbursement.

3. Detective Division Premium – 5%

Police Officers who are routinely and consistently assigned to the Detective Division may receive a Detective Division Premium of five percent (5%) above current step subject to administrative direction.

4. Police Liaison Premium (Community Relations/SRO) – 5%

Police Officers who are routinely and consistently assigned to function as a liaison between special persons, groups, or courts and the Police Department (while assigned to Community Relations or as a School Resource Officer) may receive a Police Liaison Premium of five percent (5%) above current step subject to administrative direction.

5. Crime Scene Investigator Premium – 5%

A unit employee routinely and consistently assigned by management to analyze and explore a crime scenes on Crime Scene Investigation (CSI) duty shall receive a CSI Premium of five percent (5%) above current step subject to administrative direction.

6. Field Training Officer Training Premium – 5%

A unit employee routinely and consistently assigned by management to train employees on field training officer (FTO) duty shall receive a Training Premium of five percent (5%) above current step subject to administrative direction , effective in the first full

5 pay period following notice to Human Resources of the assignment of a trainee to the FTO.

7. Gang Detail (Violence Suppression Task Force) Assignment Premium – 5%

A unit employee routinely and consistently assigned by management to the Gang Detail (Violence Suppression Task Force) Assignment, to enforce laws relating to a group of individuals banded together for unlawful activities, shall receive a Gang Detail Assignment Premium of five percent (5%) above current step subject to administrative direction.

8. Police Administrative Officer Premium (Personnel & Training/Internal Affairs) – 5%

A unit employee routinely and consistently assigned to police administration to provide support for the Police Chief and command staff in the operation of the Police Department, while serving in the Personnel and Training Unit or in Internal Affairs, receives a Police Administrative Officer Premium of five percent (5%) above current step subject to administrative direction.

9. Drone Operator Premium – 5%

A unit employee licensed and assigned as a Drone Operator receives a premium of five percent (5%) above current step subject to administrative direction.

10. SWAT Premium – 5%

A unit employee assigned to Special Weapons and Tactics (SWAT) receives a premium of five percent (5%) above current step subject to administrative direction.

E. On-Call Pay for Detectives

A detective who is assigned to be on-call shall receive on-call compensation in the amount of $5.00 per hour of assignment, unless called in to work (in which case the employee is paid for time worked instead). On-call pay shall begin at the conclusion of the employee's regular shift.

F. Court Pay

1. Off-duty court pay shall be a minimum of four (4) hours pay or comp time (Officer's option) at time and one half (1-1/2) based on the employee’s regular rate.

2. a. If an officer is required to be available for a court appearance for more than four (4) hours of otherwise off-duty time, court pay will be calculated from subpoena appearance time until the officer is released from court duty for the day, minus one hour for a lunch break (if not required to work during the break).

b. If there is a break of at least four (4) hours between the time the officer is

6 released to the time the officer is required to return on the same day, the officer will receive four (4) hours pay at time and one half (1-1/2) for each appearance.

c. Court compensation will be no more than eight (8) hours per day, unless more hours are actually worked.

3. If a court appearance is scheduled within two (2) hours of the beginning of an officer's shift, compensation shall be time and one half (1 -1/2) from time of subpoena until beginning of shift.

4. It is the responsibility of the subpoenaed officer to check the status of any subpoena, as provided in the Salinas Police Department Policy Manual , after 1800 (6:00 p.m.) hours on the prior court day to ascertain if a court appearance has been canceled. In the event of a court cancellation entered into the City notification systems after 6:00 p.m. on the preceding day but before 5:00 a.m. on the court day, the officer shall receive a two (2) hour minimum at straight time. In the event of a court cancellation entered into the City notification systems at or after 5:00 a.m. on the court day, the officer shall receive the four (4) hour minimum set forth in Paragraph 1, above, if not otherwise scheduled to work during the time of the cancelled appearance . The applicable court pay is determined by when the cancellation is entered into the City notification system, not the time the officer checks the system.

G. Overtime

A unit employee required to work beyond his/her regularly scheduled work shift shall be compensated at a premium of one and a half (1½) times the employee’s regular rate (as defined under the Fair Labor Standards Act (FLSA)) for the excess hours worked.

Overtime calculations shall include paid leave time (including, but not limited to, annual leave, bereavement leave and compensatory time off) and shall be considered time worked.

Pursuant to 29 USC section 207(k), for purposes of FLSA overtime, the work period is 28 days with 171 hours.

H. Night Shift Differential

$253.0045 per shift differential payment will be paid to unit employees who are routinely and consistently scheduled to work shifts at midnight. Being on duty at midnight includes those employees whose assigned shift either ends or begins at midnight. No night shift differential will be paid for overtime hours worked.

I. Master Police Officer Incentive PayProgram

The City will establish a Master Police Officer Incentive Pay Program effective in the first full pay period of January 2017 for employees that satisfy all of the following criteria:

7 a. An overall performance evaluation rating of meets standards or better for the period most recently evaluated.
b. At least 8 years of law enforcement experience as a sworn peace officer. c. Possession of an Advanced POST Certificate.
d. Completion of at least 40 hours of Crisis Intervention Training (CIT) within five years or, if CIT training is older than five years, completion of approved refresher training within five years.
e. Current performance of at least one (1) of the following collateral duties/special assignments with the Salinas Police Department: Canine Officer, Community Relations Officer (Police Liaison), Violence Suppression Unit/Gang Task Force (Gang Detail Assignment), Detective Division/Police Investigator, Training Instructor (e.g., defensive tactics, less lethal, EVOC, use of force, etc.), Range Master, School Resource Officer or Police Activities League (Police Liaison/Drug Abuse Resistance Education), Traffic D etail/Motorcycle Patrol, Crime Scene Investigator, Field Training Officer, SWAT, or Personnel & Training/Internal Affairs (Police Administrative Officer).

Employees who satisfy the criteria set forth above shall receive a three percent (3%) Master Police Officer pay incentive , effective in the first full pay period of ratification and approval of this MOU and following verification of criteria by Human Resources.

Effective in the first full pay period of January 2025 and following verification of criteria by Human Resources, employees who satisfy the criteria set forth above and have a total of twelve years of law enforcement experience as a sworn peace officer shall receive an additional two percent (2%) for a total incentive pay of five percent (5%).

SECTION 7 - BENEFITS

A. Health, Dental, and Vision
The City shall contribute amounts toward the premiums for Peace Officers Research Association of California (PORAC) coverage or other City sponsored PERS plan of the employee’s choice, for which the employee is eligible, for the employee and eligible dependents as follows. The City will continue with the full amount of premiums for current supplementary dental and vision plans available to City employees and eligible dependents.

The City will contribute an amount toward monthly health benefits premiums for eligible bargaining unit employees as follows.

Effective with the start of the 2024 plan year, the City contribution shall be adjusted as follows:

1. Single/Employee Only: 95% of the plan premium, not to exceed 95% of the PERS Platinum plan premium.

2. Two Party/Employee +1 dependent: 94.5% of the plan premium, not to exceed 94.5% of the PERS Platinum plan premium.

8 3. Family/Employee +2 or more dependents: 94% of the plan premium, not to exceed 94% of the PERS Platinum plan premium.

Effective with the start of the 2025 plan year, the City will contribute toward monthly health benefits premiums in an amount equal to 94% of the premium for the plan and level of coverage the employee has selected, up to a maximum of 94% of the cost of the premium for the PORAC plan.

The employee shall share in the cost of health coverage and pay for premium costs above the City’s contribution through payroll deductions.

Employees enrolled in the City’s medical program under the California Public Employees’ Medical and Hospital Care Act (“PEMHCA”) receive a contribution by the City equal to the statutory minimum monthly contribution under PEMHCA. The City contribution amo unts described above shall include the PEMHCA statutory minimum contribution.

In the event that new legal requirements of the Affordable Care Act (ACA) are effective during the term of this Memorandum of Understanding, the parties agree to re -open on the limited subject of achieving legal compliance with the ACA.

An employee may elect to waive the City’s health insurance coverage, if the employee complies with the following conditions:

1. The employee and all individuals in the employee’s tax family have alternative Minimum Essential Coverage as defined by the ACA through a provider other than Covered California; and

2. The employee provides affirmation or proof to Human Resources of the alternative Minimum Essential Coverage at hire, if applicable, and annually during the City’s health insurance open enrollment period.

B. Retiree Medical Benefit

Employees who retire from the City and qualify as “annuitants” under PEMHCA are enrolled by CalPERS in the applicable group health plan as a retiree. As required by applicable statutes or regulations, annuitants must enroll in Medicare at age 65 or as soon as they become eligible.

The City will pay (1) the PEMHCA minimum contribution for annuitants, and (2) twenty-five (25%) percent or $100 per month (whichever is less) of the employee and spouse medical insurance premium for employees retiring from the City who qualify as annuitant s and who were hired with the Salinas Police Department before July 1, 2019. The City payment of the additional benefit beyond the PEMHCA minimum contribution shall be provided for no more than ten (10) years for each employee, and shall be discontinued when the employee or spouse becomes eligible for Medicare coverage, whichever is earlier.

Upon request from the Association, the City will enter into a Side Letter Agreement allowing all employees covered by this Agreement to participate in a retiree medical expense reimbursement plan administered by the PORAC Retiree Medical Trust. The trust shall be and

9 remain separate and apart from any employer health insurance funding program. The City and the Association acknowledge that the Side Letter Agreement shall specify that the program shall be implemented in a manner that is cost -neutral for the City. The Association shall pay for the administrative costs arising from the enrollment of the Association in the PORAC Retiree Medical Trust and the City shall not be required to pay any fees or make any contributions on behalf of individual employees.

C. Long Term Disability

The Association shall maintain a separate account for City contributions to the Association-sponsored Long Term Disability Plan and shall apply such contributions solely to the Association-sponsored plan. The City contribution per Association employee sha ll not exceed the City's per employee rate for the City ’s Long Term Disability Plan, or the per employee rate of the PORAC Premier Plus Long Term Disability Plan, whichever is less.

D. Tuition Assistance

An employee shall be allowed up to five hundred dollars ($500) per fiscal year for reimbursement for eligible educational expenses upon successful completion of a voluntary academic course of study and/or individual course approved by the Chief of Police and the Human Resources Director. Eligible expenses are defined as costs for classes which meet the following criteria:

• Approval is obtained prior to attending class

• Are directly related to an employee's job duties

• Receive college units, POST training credit, CEU credit, or are offered/presented by a bona fide, recognized firm or institution with direct knowledge of and experience in the curriculum offered

• For which class and study time are outside of the employee's work hours

• For which successful completion (academic grade of C or better or a certificate of completion) is provided. Reimbursement will not be made without such documentation.

Reimbursement for training classes, seminars and workshops which are not part of an academic course of study is limited to the cost of registration only. Expenses for lodging, meals, travel, and other related expenses are not reimbursable under this program. Expenses for books, class fees, and/or class supplies for college classes which are part of an academic course of study will be eligible for reimbursement under this program.

E. Uniform Allowance

The Police Department issues to each employeelateral or academy graduate police officer

10 uniform clothing and items for personal health and safety, as listed in Attachment B, through a vendor selected by the Department.

Such employees receive a monthly payment of $100 beginning with the first month of employment to cover expenses of uniform replacement and maintenance. The monthly amount is prorated in the first month for newly hired employees.

F. POST Certificate Pay

1. Intermediate Certificate: An employee who has a POST Intermediate Certificate shall receive a premium pay of three and a half percent (3.5%) of base salary.

2. Advanced Certificate: An employee who has a POST Advanced Certificate shall receive a premium pay of three and a half percent (3.5%) of base salary, in addition to POST Intermediate Certificate Pay (3.5%), for a total of seven percent (7%) of base salary.

An employee who becomes eligible for the POST Certificate Pay shall retain that eligibility while employed in a classification represented by the Association. POST Certificate Pay is effective in the first full pay period following the employee’s submission of an Immediate or Advanced Certificate to Human Resources.

G. Fitness Exam for SWAT Assignment

Assignment and reassignment to the Special Weapons and Tactics (SWAT) unit is conditioned on successful completion of a SWAT fitness exam. The exam will be the SWAT Physical Fitness Test Agility Course. The exam may be amended from time to time upon mutu al agreement of the Police Chief and the Association. Changes in assignment/reassignment from the SWAT unit are solely a management right and not subject to approval or grievance.

H. PERS Retirement Program

1. Classic Employees

The City shall provide the PERS Police Public Safety Retirement Program 3% @ 50 benefit for employees hired before July 1, 2011. The City provides the 3% @ 55 formula for employees hired on or after July 1, 2011.

Employees contribute nine (9%) percent of the employee’s compensation toward the cost of this retirement benefit as cost sharing. Each classic employee shall contribute an additional one percent (1%) toward the employer contribution to his/her pension benefit (for a total 10% employee pension contribution). Effective in the first full pay period in January 2017, each classic employe e shall contribute an additional one percent (1%) toward the employer contribution to his/her pension benefit (for a total 11 % employee pension contribution).

Effective in the first full pay period in January 2018, each classic employee shall contribute an additional one percent (1%) toward the employer contribution to his/her pension benefit (for a total 12% employee pension contribution).

11 2. New Members

The formulas above do not apply to persons who are defined as “new members” under the Public Employees’ Pension Reform Act of 2013 (“PEPRA”).

“New members” under PEPRA are subject to all applicable PEPRA provisions, including the

2.7% @ 57 formula. Each new member will contribute 50% of the normal cost of his/her benefit as determined by CalPERS.

I. Longevity Pay

Effective September 12, 2016, employees who have attained ten (10) years of regular service with the City of Salinas Police Department shall receive a three percent (3%) longevity pay incentive. Employees who have attained twenty (20) years of regular service with the City of Salinas Police Department shall receive a longevity pay incentive of an additional five (5%) percent base salary in recognition of their time in service for a total of eight percent (8%) in longevity pay. No employee shall receive more than eight percent (8%) in longevity pay incentives. Longevity pay is effective in the first full pay period following the employee’s anniversary date.

J. Blood Donation

An employee may be granted paid release time of up to a maximum of one (1) hour for donating blood during scheduled hours of work. The length of the leave must be approved in advance by the supervisor. Approval or denial of this leave shall be within the sole discretion of the Department.

SECTION 8 - LEAVE PROVISIONS

A. Holidays

1. Fixed Holidays Date
New Year's Day January 1
Martin Luther King Third Monday in January
Lincoln’s Birthday February 12
Presidents’ Day Third Monday in February
Cesar Chavez Day March 31
Memorial Day Last Monday in May
Juneteenth June 19
Independence Day July 4th
Labor Day First Monday in September
Veteran's Day November 11
Thanksgiving Day Fourth Thursday in November
Friday after Thanksgiving Day after Thanksgiving
Christmas Eve December 24
Christmas Day December 25

12 2. Every day appointed by the President or Governor for a public day of mourning, thanksgiving, or holiday, when ratified by the Mayor or the Salinas City Council.

3. All holidays are calculated as eight (8) hours.

4. Holiday Leave: Unit employees who are not normally required to work on a holiday (generally officers with non-patrol assignments, such as to the Detective Division, Personnel & Training, or Internal Affairs) are paid eight (8) hours of holiday leave at straight time for time off on each holiday listed above.

5. Holiday Pay: In recognition of the fact that other bargaining unit employees (including patrol officers) are normally required to work on an approved holiday because they work in positions that require scheduled staffing without regard to holidays, in lieu of receiving time off for holidays, such unit employees will be paid 4.31 hours of pay at straight time in each biweekly paycheck (i.e., 112 hours per year). This pay consists of base pay plus any applicable bilingual premium, temporary upgrade pay, special assignment pay (additional duties), motor patrol /premiums, canine officer premium, detective division premium, police liaison premiu m, CSI premium, FTO premium, VSTF premium, administrative officer premium, master officer incentive pay, POST certificate pay, and longevity pay. Usual wages are paid for time worked; no premium is paid for working on a holiday. If an employee was scheduled to work on a holiday, the employee must use accrued annual leave or compensatory time off for any approved leave on the holiday.

B. Annual Leave

Annual Leave shall be as provided in Section 11.4 of the Personnel Manual. Annual Leave accrues over the course of a year as follows:

1st through 5th year 176 hours per year
6th through 10th year 216 hours per year
11th through 15th year 232 hours per year
16th through 17th year 240 hours per year
18th through 19th year 248 hours per year
20th through 24th year 256 hours per year
25th year and later 264 hours per year

C. Bereavement Leave

An employee represented by the Association shall be entitled to four (4) days of leave with pay for the death of a family member, plus one unpaid day, based on the number of hours regularly scheduled. All provisions of the Personnel Manual regarding Bereavement Leave (Section 11.9) shall apply.

Family member includes:

13 Husband Mother-in-Law
Wife Father-in-Law
Father Sister-in-Law
Mother Brother-in-Law
Child Legal Guardian
Brother Step-Child
Sister Step-Father
Grandparent Step-Mother
Grandchild Step-Sister
Step-Mother-in-Law Step-Brother
Step-Father-in-Law Registered Domestic Partner

D. Family & Medical Leave

Family and medical leave is provided in accordance with the California Family Rights Act and the Federal Family and Medical Leave Act, as detailed in the Administrative Memorandum 94-1, as revised.

SECTION 9 - WORKING CONDITIONS

A. Grievance/Disciplinary Action Appeals Procedure

The purpose of this Grievance Procedure is to promote communication and improve employer- employee relations by establishing a process to encourage settlement of disputes. The parties recognize that it is in their mutual interest to resolve problems expeditiously at the lowest possible administrative level. Any resolution of dispute at this level must be consistent with the terms of this Memorandum of Understanding.

1. Grievance Definition
A grievance shall be defined as an alleged violation of the Meyers -Milias-Brown Act (“MMBA”), or a dispute arising from the application or interpretation of any section of this Memorandum of Understanding; the City of Salinas Municipal Code; Department policies, procedures, rules or regulations; or the City Personnel Rules.

2. Procedure for Grievances
Step 1 – Informal Resolution
In the event an individual employee wishes to lodge a grievance, he or she will, within 14 calendar days of the incident being grieved, discuss the grievance with his/her immediate supervisor, notifying the supervisor that this discussion is the first step in the grievance procedure. There is no requirement for the employee to submit the grievance in writing at this point. If the grievance is not resolved to the Grievant’s satisfaction, the Grievant must advance the grievance to Step 2 of this Grievance Procedure within 45 calendar days from the date the Grievant knew or reasonably should have become aware of the alleged violation. Grievances filed by the Association on behalf of one or more members may be

14 filed at Step 2 within 45 calendar days from the date the Association knew or reasonably should have become aware of the alleged violation.

Step 2 – Police Chief
A Step 2 grievance shall be submitted to the Chief of Police in writing with a copy to the Human Resources Director. The written grievance shall contain the following information:
a) a statement of the grievance, the facts upon which it is based, and the person(s) involved;
b) the specific section(s) of the MMBA, this Memorandum of Understanding, the City Personnel Rules, the City of Salinas Municipal Code, or Department policies, procedures, rules, or regulations alleged to have been violated; c) a summary of informal resolution efforts; and
d) the remedy requested.

The Chief of Police or designee shall respond in writing within fifteen (15) working days of receipt of the written grievance. The written response at this step (and all management responses at all steps hereafter) shall contain the following information:
a) a response to the facts upon which the grievance is based; b) an analysis of the alleged violation; and
c) a response to the remedy requested;
If the grievance is not resolved to the Grievant’s satisfaction, the Grievant shall advance the grievance to Step 3 of this Grievance Procedure within ten (10) working days from the date of receiving the written response from the Chief of Police or designee.

Step 3 – City Manager
A Step 3 grievance shall be submitted to the City Manager in writing. The written grievance shall contain the following information:
a) a copy of the Step 2 grievance;
b) a copy of the Chief’s response to the Step 2 grievance; and c) a response by the Grievant to the Chief’s Step 2 response.

The City Manager or City Manager’s designee shall meet with the Grievant or the Grievant’s representative within thirty (30) calendar days of receipt of the written grievance. The City Manager or City Manager’s designee shall provide a written response within ten (10) working days of the date of discussion with the Grievant or the Grievant’s representative.

15 If the grievance is not resolved to the Grievant’s satisfaction, the Grievant shall advance the grievance to Step 4 of this Grievance Procedure within ten (10) working days from the date of receiving the written response from the City Manager or City Manager’s designee.

Step 4 – Grievance Board
The Grievance Board is composed of three members and one alternate. The first two members are appointed by City Council as described in Section 25 -43 of the Salinas Municipal Code, with one member nominated by City management and a second member selected from a list of nominations by the employee organizations.

For each appeal, a third member shall be selected by the City and the Association to serve temporarily on the Grievance Board, as follows. If the parties are unable to mutually agree on the selection of an arbitrator, the names of seven (7) arbitrators shall be obtained from the California State Mediation and Conciliation Service. By coin toss, the losing party shall strike one (1) name from the panel list. The other party shall strike one (1) name alternately until only one (1) name remains, who shall serve as the third member arbitrator.

The City and the Association agree to divide equally the cost of the arbitrator and any court reporter. Each party shall bear their own respective costs of making their presentation to the arbitrator, including but not limited to, their own attorney fees, expert witness fees, regular witness fees, and related costs.

The Grievance Board decision shall be advisory to the City Council. The Grievance Board shall issue a written decision within forty-five (45) calendar days of the close of the hearing.

The City Council shall maintain the authority to affirm, reverse, or modify the Grievance Board’s award. Absent a stipulation between the parties, any failure of the City Council to take action within 45 calendar days of the Grievance Board’s award shall serve to affirm the award.

3. Procedure for Disciplinary Appeals
An appeal from disciplinary action shall be in writing and subject to the following procedure. Written reprimands are not appealable, but an employee may submit written comments in rebuttal.

The employee may appeal disciplinary action (post -Skelly) by submitting a written notice of appeal within ten (10) working days of receipt of notification of disciplinary action from the City Manager or his/her designee. The written notice shall be directed to the Director of Human Resources.

The appeal shall be heard by the Grievance Board as described in Step 4 above. The City Council shall maintain the authority to affirm, reverse, or modify the Grievance Board’s award, as stated in Step 4 above.

4. Time Limits
Any time limits specified in this Grievance Procedure / Disciplinary Appeal Procedure may

16 be extended by mutual agreement. Requests for an agreement to extend any deadline shall be confirmed in writing.

B. Comp Time

Accumulation of comp time, in lieu of overtime compensation, shall be limited to 160 hours with an option of full buy -out at the appropriate rate of pay upon separation subject to administrative direction. Comp time accrual is limited to overtime worked c overing regular shifts; it does not accrue for working special events or grant -funded activities or other situations for which the City may seek reimbursement (where employees will be paid out for any overtime) and does not accrue for holiday pay.

C. Pre-scheduled Overtime

If a change in scheduling requires an officer to work two (2) hours or less during his/her off-duty hours, he/she shall receive a minimum of two (2) hours pay at one and a half (1 -1/2) times the employee’s regular rate. This minimum does not include hours contiguous with his/her scheduled shift.

D. Field Operations

1. Shift Assignments

Officers sign up for shifts by seniority.

Officers may request shift preference for reasons of personal hardships, etc.

2. Holidays

Police Officers assigned to duty on a holiday may request and be allowed to take the day off if the shift is adequately staffed as determined by the Watch Commander.

Priority for granting Officers’ requests for holidays off is on a first -come first-served basis.

3. Vacations

Vacation time will normally be scheduled in weekly increments by watch. For employees with less than sixteen (16) years tenure with the City, vacation time may not exceed three (3) consecutive weeks in any calendar year. For employees with sixteen (16) y ears or more tenure with the City, vacation time may not exceed four (4) consecutive weeks in any calendar year. Vacation time is generally limited to no more than thirty (30) working days in any calendar year. Vacation time off is limited to two (2) officers per watch, with generally no more than 12 officers scheduled to be out per day (using either annual leave or compensatory time off). Vacation scheduling will be determined by seniority. The Police Chief may grant exceptions to the vacation

17 scheduling rules based on the needs of the City and the requests of the employees and as required by law.

Any of the vacation periods having an unassigned slot may be applied for by seniority with the Division Commander’s approval.

Police Officers may exchange vacation slots with each other with the Division Commander’s approval.

Police Officers may take vacations out of their assigned time period, if staffing permits and with Division Commander’s approval.

Field Training Officers (FTOs) will be provided a separate vacation schedule in which they may sign up by seniority.

When the Field Training Officers’ vacation schedule is completed and compared against the supervisory schedule, no conflicts shall be allowed, such as a Field Training Officer (FTO) and his/her Sergeant being off in the same vacation slot. In the event of a conflict, the Division Commander will make the decision if the parties cannot resolve the conflict between themselves.

4. Schedules

The Chief of Police has the right to change and implement work schedules for all unit personnel, consistent with the needs of the Salinas Police Department. In the event that the Chief changes work schedules during the term of the MOU, the Chief has the right to implement such changes following the completion of any legally required meet and confer and impasse requirements.

E. Investigation Shift Assignments

Detectives are assigned shifts based on departmental needs, individual experience and capabilities as determined by the Division Commander.

F. Scheduling Coverage

A unit employee shall not have his/her regularly scheduled days off changed except in the event of an emergency or in accordance with Departmental policy. Nothing in this section shall be interpreted to limit the Department’s authority to require an emplo yee to work on his or her regularly scheduled days off and compensate the employee at his or her applicable rate of pay.

Supplemental Law Enforcement: The parties agree that public safety is of paramount concern to both parties as well as the community we serve. Therefore, the City and the Association agree to meet following approval of this Memorandum of Understanding to work together to address iss ues related to law enforcement staffing for special events, and staffing options

18 related to emergency situations. How supplemental law enforcement may be used shall also be considered in these meetings.

G. Training Activities

The City shall implement training activities to provide each employee with a minimum of forty (40) hours every two (2) years of POST-certified training. These POST-certified training hours shall be provided only if POST provides reimbursement consistent with the POST reimbursement program in effect.

SECTION 10 – COMMITTEES

A. Safety Committee

The City and the Association shall cooperate in pursuing safe working practices. In the interest of increasing safety within City operations and consistent with existing City policy, the Association may appoint one (1) member to serve on any safety commit tee within the scope of Association representation. The rotation policy (six -month rotation, 1 -year term) shall apply. Recommendations of the Safety Committee shall be referred to the City Manager for review and action if deemed appropriate by the City Manager.

B. Deferred Compensation Committee

The City's Deferred Compensation Committee may include one (1) employee designated by the Association. The designated employee must be a participant in the City ’s Deferred Compensation Program with Trust Deed Program investments.

SECTION 11 – MISCELLANEOUS

A. Accommodations for Employees with Disabilities

The City grants reasonable accommodations to employees with disabilities as required under the Americans with Disabilities Act (ADA) and the Fair Employment and Housing Act (FEHA). To avoid disability discrimination, the City may modify provisions of this Memorandum of Understanding and its Personnel Manual and other policies relative to hiring, promotion, transfer, layoff, reassignment, termination, rehire, rates of pay, job classification and duties, seniority, leaves of absence, benefits, training opportunities, hours of work, or other terms and privileges of employment. Any accommodation provided to an individual protected by the ADA or FEHA shall not establish a past practice or be used or cited as past practice in any grievance procedure.

SECTION 12 – TERM

The term of this Memorandum of Understanding shall commence upon January 1, 2026 Council approval and shall expire on December 31 , 20275. Proposals for change and/or renewal shall be submitted by October 1, 20275.

19 Dated __________________________ Dated _________________________

CITY OF SALINAS SALINAS POLICE OFFICERS ASSOCIATION

_____________________________ ____________________________ By: René MendezJim Pia By: A. Christopher Avila
Interim City Manager President

20 APPENDIX A
[update salary schedule]

Position
Step 1
Hourly
Step 1
Monthly
Step 2
Hourly
Step 2
Monthly
Step 3
Hourly
Step 3
Monthly
Step 4
Hourly
Step 4
Monthly
Step 5
Hourly
Step 5
Monthly
Step 6
Hourly
Step 6
Monthly
Step 7
Hourly
Step 7
Monthly

21 APPENDIX B

UNIFORM CLOTHING & EQUIPMENT – LATERAL / ACADEMY GRAD
SUMMIT UNIFORM CORP.

QTY. ITEM*
2 Navy Wool Pants
2 Navy Wool Shirts
1 Duty Jacket
1 w/ Cloth Name Tag
1 Rain Jacket
1 Rain Hood
1 Rain Pants
1 Black Tie
1 Tie Bar
1 Velcro Duty Belt
1 Velcro Pant Belt (Under Belt)
4 Keepers – Hidden Snap
1 Double Cuff Case – Hidden Snap
1 Key Silencer
1 26” ASP Baton
1 26” ASP Holder
1 Closed OC Holder
1 Holster (Level 3 / P320)
1 Mag Pouch (Triple P320 .45 / Dbl P320
9mm)
1 Light Holder
2 Handcuffs
1 Badge holder

22 1 Blackington Name Tag
1 Class A Hat
1 Rain Cover for Hat
1 Class A Hat Piece
1 Florescent Traffic Vest
1 Flashlight ($120 allowance)
1 Boots ($100 allowance)
1 Ballistic Vest

*Items provided are subject to change.

1 MEMORANDUM OF UNDERSTANDING

BETWEEN

THE CITY OF SALINAS
AND

THE POLICE MANAGERS ASSOCIATION

SECTION 1 – PREAMBLE

This Memorandum of Understanding is entered into by the City of Salinas (“City”) and the Police Managers Association (“Association”). This Memorandum of Understanding applies to all regular personnel in Job Classifications found in Appendix A attached hereto. This Memorandum of Understanding is subject to Sections 3500 -3510 of the Government Code of the State of California otherwise known as the Meyers -Milias-Brown Act (“MMBA”), and the City of Salinas Charter and Municipal Code.

SECTION 2 – NO ABROGATION OF RIGHTS

The parties acknowledge that the City rights and employee rights as indicated under Chapter 25, Sections 31 and 32, and all applicable State or Municipal laws, the City Personnel Rules and Regulations, the City Personnel Manual, and the Salinas Police Department Policy Manual, and the rights of the City Council are neither abrogated nor made subject to the meet and confer process by the adoption of this Memorandum of Understanding.

The City agrees to act in accordance with the provisions of the Public Safety Officers Procedural Bill of Rights as currently provided in Government Code Sections 3300 et seq.

SECTION 3 – PAST PRACTICES

The parties agree that this Memorandum of Understanding supersedes any past practice covered by this Memorandum of Understanding and any other prior written agreement agreed to by the parties not addressed in this Memorandum of Understanding.

SECTION 4 – NO DISCRIMINATION

The City and the Association will cooperate in pursuing a policy of no discrimination. Unit employees shall have the right to form, join and participate in the activities of employee organizations of their own choosing for the purpose of representation on all matters of employer -employee relations including wages, hours, and other terms and conditions of employment. No such employee shall be interfered with, restrained, coerced or discriminated against by the City or the Association because of his/her exercise of the rights established by law.

2 SECTION 5 – RECOGNITION MATTERS

A. Recognition

Pursuant to Sections 3500 -3510 of the Government Code of the State of California, and Chapter 25, Section 34 of the Salinas Municipal Code, the City has certified the Association as the recognized employee organization for full -time regular employees assig ned to certain classifications designated in Appendix A (“Unit”).

B. Dues Checkoff

The City agrees to continue to allow dues and other mutually agreed upon payroll deductions to be deducted from the pay of employees who voluntarily authorized such deductions in writing on a form provided by the Association. Such deductions shall be made in a lump sum on a monthly basis and shall be so remitted to the Association. The City shall not deny consent for reasonable payroll deductions, nor shall the Association unreasonably request payroll deductions.

The Association shall indemnify and defend and hold the City of Salinas harmless against any claims made and against any suit instituted against the City of Salinas on account of collection of Association dues and other mutually agreed upon payroll deducti ons. In addition, the Association shall refund to the City of Salinas any amounts paid to it in error.

SECTION 6 – PAY RATES AND PRACTICES

A. Wages

1. Effective January 5, 2026, wages for Unit members will be adjusted as reflected in the salary schedule attached as Appendix A.

2. Effective in the first full pay period of January 2027, Unit members will receive a 3% salary adjustment.

3. Effective in the first full pay period of January 2028, Unit members will receive a 3% salary adjustment.

B. Bilingual Premium

A premium of five percent (5%) of base salary shall be paid to Police Sergeants and Police Commanders in recognition that they are assigned by management to routinely and consistently speak and use Spanish in the course of the employee's duties. This section is subject to administrative direction.

One hundred dollars ($100) per month shall be paid to Deputy Police Chiefs who routinely and consistently speak and use Spanish in the course of his/her job duties, subject to administrative direction.

3 C. Special Assignment Pay

The City has established two (2) categories of special assignment pay.

1. Temporary Upgrade Pay (Special Assignment Pay While Working Out of Class). An employee who is assigned by the Chief of Police to all the duties of a higher classification, while relieved of the duties of the employee’s current position, shall receive a ten percent (10%) Temporary Upgrade Pay. Such pay shall be based on the employee’s established base salary.

2. Special Assignment Pay While Performing Additional Responsibilities. An employee who is assigned by the Police Chief a significant increase in duties and responsibility in his/her classification may receive a ten percent (10%) special assignment pay. Such pay is authorized on recommendation of the Chief of Police with approval of the Human Resources Director. It may be paid for special assignments of not less than two (2) weeks nor more than three (3) months duration. The City Manager may approve additional special assignment pay beyond three (3) months for exceptionally difficult long-range assignments.

Consistent with Government Code section 20480, an out-of-class appointment to an upgraded position or higher classification during recruitment for a vacant position shall not exceed a total of 960 hours in each fiscal year.

D. Overtime

1. Consistent with current practice, employees in the rank of Sergeant who work beyond their normal shift schedule shall be compensated at time and one-half (1½) for the excess hours worked.

2. Pursuant to 29 USC section 207(k), for purposes of FLSA overtime, the work period is 28 days.

E. Court Pay for Sergeants

1. Off-duty court pay for Sergeants will be four (4) hours pay or comp time at time and one half (1½) or time and one half (1½) for actual hours in court, whichever is greater, except as modified in 2 and 3 below.

2. If one (1) officer makes two (2) or more court appearances in one (1) day and these appearances are:
a. Scheduled at least four (4) hours apart, the officer shall receive not less than four (4) hours pay at time and one half (1½) for each appearance.

b. Scheduled less than four (4) hours apart, the officer shall be compensated for a minimum of four (4) hours pay at time and one half ( 1½) or time and one half (1½) for all hours in court, whichever is greater. This includes all subpoenas

4 within the four (4) hour time period with the overtime period commencing at the appearance time of the earliest subpoena. Court compensation will be no more than eight (8) hours per day (two (2)-four (4) hour minimums) unless more hours are actually worke d. In no case will there be double compensation for overlapping hours.

3. If a court appearance is scheduled within two (2) hours of the beginning of the officer’s shift, compensation shall be as follows:

a. Time and one half for hours from end of shift through the completion of the court appearance, (example: If the officer ends his/her shift at 0800 hours (8:00 a.m.) and has court from 0830 hours (8:30 a.m.) to 0900 hours (9:00 a.m.) = 1 hour, 1000 hours (10:00 a.m.) to 1045 hours (10:45 a.m.) = four (4) hours)

OR,

b. Time and one half ( 1½) for hours from time of subpoena until beginning of shift, (example: 1445 hours (2:45 p.m.) to 1700 hours (5:00 p.m.) = four (4) hours; 1500 hours (3:00 p.m.) to 1700 hours (5:00 p.m.) = two (2) hours, if the officer starts his/her shift at 1700 hours).

4. The Department shall by 1800 hours (6:00 p.m.) of the preceding court day have available in the Watch Commander ’s office a list of those officers whose court appearances have been canceled for the next court day. It is the responsibility of the subpoenaed officer to check the status of any subpoena, as provided in the Salinas Police Department Policy Manual, after 1800 hours (6:00 p.m.) on the prior court day to ascertain if a court appearance has been canceled.

No compensation shall be given for a properly canceled court appearance.

In the event of a court cancellation entered into the City notification systems after 6:00 p.m. on the preceding day but before 5:00 a.m. on the court day, the officer shall receive a two (2) hour minimum at straight time.

In the event of a court cancellation entered into the City notification systems at or after 5:00 a.m. on the court day, the officer shall receive the four (4) hour minimum set forth in Paragraph 1, above, if not otherwise scheduled to work during the time of the cancelled appearance. The applicable court pay is determined by when the cancellation is entered into the City notification system, not the time the officer checks the system.

5. At their option, employees may choose to work in the Police Department during court lunch breaks if they are required to return to court after the court lunch break. This is contingent on the Watch Commander having a work assignment for the officer. If this be the case, the officer must have the Watch Commander sign the subpoena forms indicating such assignment.

5 F. Night Shift Differential

Night shift differential at the rate of $2 5.00 per shift shall be paid to employees who are routinely and consistently scheduled to be on duty at midnight. Being on duty at midnight includes employees whose assigned shift either ends or begins at midnight. No night shift differential will be paid for overtime hours worked.

G. Emergency Callback

Police Commanders shall be eligible for emergency callback overtime. Emergency callback overtime is not paid for attendance at training, meetings, or scheduled events. Emergency callback overtime shall be compensated at time and one -half (1½), up to a maximum of ten (10) hours or ten (10) hours and forty (40) minutes (depending on assigned schedule) per incident, subject to a minimum overtime callback of two (2) hours (three hours compensation).

H. Compensatory Time Accrual

The maximum compensatory time accrual for employees represented by the Police Management Association shall be 160 hours. Comp time accrual is limited to overtime worked covering regular shifts; it does not accrue for working special events or grant-funded activities or other situations for which the City may seek reimbursement and does not accrue for holiday pay.

I. Investigations Supervisor On-Call Pay

On-call pay of $ 5.00 per hour shall be provided to the Investigations Supervisor as assigned by the Division Commander. The on-call compensation shall commence at the conclusion of the employee’s work shift.

SECTION 7 – BENEFITS

A. Health, Dental, and Vision Plan Benefit

The City shall contribute toward the health premiums for coverage under the Peace Officers Research Association of California (PORAC) plan or another City -sponsored PERS plan of the employee’s choice, for which the employee is eligible, as described below.

Effective in January 2026, the City shall contribute an amount toward monthly health benefit premiums for Unit employees equal to 94% of the premium for the level of coverage the employee has selected, up to a maximum of 94% of the cost of the premium for the PORAC plan.

The employee shall pay for premium costs above the City’s contribution through payroll deductions.

6 The City will continue with the full amount of premiums for current supplementary dental and vision plans available to City employees and eligible dependents throughout the term of this MOU.

Employees enrolled in the City’s medical program under the California Public Employees’ Medical and Hospital Care Act (“PEMHCA”) receive a contribution by the City equal to the statutory minimum monthly contribution under PEMHCA. The City contribution amo unts described above shall include the PEMHCA statutory minimum contribution.

In the event that new legal requirements of the Affordable Care Act (ACA) are effective during the term of this MOU, the parties agree to re -open on the limited subject of achieving legal compliance with the ACA.

An employee may elect to waive the City’s health insurance coverage, if the employee complies with the following conditions:

1. The employee and all individuals in the employee’s tax family have alternative Minimum Essential Coverage as defined by the ACA through a provider other than Covered California; and

2. The employee provides affirmation or proof to Human Resources of the alternative Minimum Essential Coverage at hire, if applicable, and annually during the City’s health insurance open enrollment period.

B. Retiree Medical Benefit

Unit members who retire from the City and qualify as “annuitants” under PEMHCA are enrolled by CalPERS in the applicable group health plan as a retiree. As required by applicable law, annuitants must enroll in Medicare at age 65 or as soon as they become eligible.

The City will pay (1) the PEMHCA minimum contribution for annuitants, and (2) twenty-five (25%) percent or $100 per month (whichever is less) for reimbursement of the medical insurance premium for employees retiring from the City who qualify as annuitants and who have been employed with the Salinas Police Department since before July 1, 2019 , subject to proof of premium payment by annuitants. The City payment of the additional benefit beyond the PEMHCA minimum contribution shall be discontinued when the em ployee becomes eligible for Medicare coverage or after ten (10) years, whichever is sooner.

During the term of this MOU, the City will administer employee contributions to the PORAC Retiree Medical Trust at the request of the Association. The parties agree that this will be an employee-funded benefit at no expense to the City.

C. Long Term Disability

The City shall contribute to the City sponsored Long Term Disability Plan the full cost of the 60% - no maximum monthly benefit program.

7 D. Life Insurance

The City shall provide term life insurance in an amount equal to the employee ’s base salary, up to $150,000, for each regular employee represented in the Unit.

E. Tuition Reimbursement

An employee shall be allowed up to five hundred dollars ($500) per fiscal year for eligible educational expenses upon successful completion of an approved academic course of study and/or individual course of study approved by the Chief of Police and the Hu man Resources Director. Eligible expenses are defined as costs for classes which meet the following criteria:

• Approval is obtained prior to attending class

• Are directly related to an employee's job duties

• Receive college units, POST training credit, CEU credit, or are offered/presented by a bona fide, recognized firm or institution with direct knowledge of an experience in the curriculum offered

• For which class and study time is outside of the employee’s work hours

• For which successful completion (academic grade of C or better or a certificate of completion) is provided. Reimbursement will not be made without such documentation.

• Reimbursement for training classes, seminars and workshops which are not part of an academic course of study is limited to the cost of registration only. Expenses for lodging, meals, travel and other related expenses are not reimbursable under this program.

• Expenses for books, class fees, and/or class supplies for college classes which are part of an academic course of study will be eligible for reimbursement under this program.

F. Uniform Allowance

The City shall pay twelve hundred dollars ($1200) per calendar year for uniform replacement and maintenance. The uniform allowance shall be paid at the rate of one hundred ($100) per month.

G. Educational Incentive

1. An educational incentive in the amount of two and a half percent (2.5%) of base pay will be paid to a Unit member with an associate’s degree (AA/AS) from an accredited college or university . The AA/AS educational incentive does not stack or carry forward; it is not paid in addition to the educational incentives described below.

8 2. An educational incentive in the amount of five percent (5%) of base pay will be paid to a Unit member with a bachelor’s degree (BA/BS) from an accredited college or university. The BA/BS educational incentive does not stack or carry forward; it is not paid in addition to the educational incentive described below.

3. An educational incentive in the amount of seven and a half percent (7.5%) of base pay will be paid to a Unit member who holds a graduate degree (MA/MS/JD) from an accredited college or university. The total amount of educational incentive is capped at seven and a half percent (7.5%).

To qualify for educational incentives, employees must submit proof of degree to the Human Resources Director. These incentives are effective upon approval by the Human Resources Director, no sooner than the first full pay period following approval of this MOU; no retroactive educational increases will be paid.

H. Residency Stipend

Employees who maintain their legal residence within the corporate limits of the City of Salinas shall receive a monthly residency stipend payable on a biweekly basis. The stipend shall be $200 per month.

I. PERS Retirement Program

1. Classic Employees

The City shall provide the PERS Police Public Safety Retirement Program 3% @ 50 benefit for employees hired before July 1, 2011. The City provides the 3% @ 55 formula for employees hired on or after July 1, 2011. Employees shall pay the employee share of nine (9%) percent.

PERS contributions contained in this paragraph shall be provided consistent with Government Code section 20516(f). Effective in the first full pay period followin g approval of this MOU or as soon as administratively feasible thereafter, each classic employee in the classifications of Police Sergeant and Police Commander shall contribute an additional two percent (2%) toward the employer contribution to his/her pension benefit. Effective January 2018, each classic employee in the classifications of Police Sergeant and Police Commander shall contribute an additional one percent (1%) toward the employer contribution to his/her pension benefit. Effective in the first full pay period of July 2018, classic employees in the classification of Deputy Chief shall contribute an addit ional three percent (3%) toward the employer contribution to his/her pension benefit.

2. New Members

The formulas above do not apply to persons who are defined as “new members” under the Public Employees’ Pension Reform Act of 2013 (“PEPRA”).

9 “New members” under PEPRA are subject to all applicable PEPRA provisions, including the 2.7% @ 57 formula. Each new member will contribute 50% of the normal cost of his/her benefit as determined by CalPERS.

J. Longevity Pay

Effective January 20, 2025, employees who have attained ten (10) years of regular service with the City of Salinas Police Department shall receive a three percent (3%) longevity pay incentive.

Employees who have attained twenty (20) years of regular service with the City of Salinas Police Department shall receive a longevity pay incentive of an additional five (5%) percent base salary in recognition of their time in service for a total of eight percent (8%) in longevity pay.

No employee shall receive more than eight percent (8%) in longevity pay. Longevity pay is effective in the first full pay period following the employee’s anniversary date.

K. Blood Donation

An employee may be granted paid release time of up to a maximum of one (1) hour for donating blood during scheduled hours of work. The length of the leave must be approved in advance by the supervisor. Approval or denial of this leave shall be within the sole discretion of the Department.

SECTION 8 – LEAVE PROVISIONS

A. Holidays

1. Fixed Holidays Date

New Year’s Day January 1
Martin Luther King Birthday Third Monday in January
Lincoln’s Birthday February 12
Presidents’ Day Third Monday in February
Cesar Chavez Day March 31
Memorial Day Last Monday in May
Juneteenth June 19
Independence Day July 4th
Labor Day First Monday in September
Veterans Day November 11
Thanksgiving Day Fourth Thursday in November
Friday after Thanksgiving Day after Thanksgiving
Christmas Eve December 24
Christmas Day December 25

10 2. Effective June 18, 2024, Cesar Chavez Day and Juneteenth are recognized holidays for this Unit.

3. Every day appointed by the President or Governor for a public day of mourning, Thanksgiving, or holiday, when ratified by the Mayor or the Salinas City Council.

4. All holidays are calculated as eight (8) hours.

5. Holiday Pay: In recognition of the fact that employees assigned to patrol with rotating schedules are normally required to work on a fixed holiday because they work in positions that require scheduled staffing without regard to holidays, in lieu of receiving time off for fixed holidays, employees with rotating schedules will be paid 4.31 hours of pay in each biweekly paycheck (112 hours per year). This pay consists of base pay plus any applicable bilingual premium, temporary upgrade pay, special assignment pay (additional duties) , educational incentive , and longevity pay . If an employee was scheduled to work on a holiday, the employee must use accrued annual leave or compensatory time off for any approved leave on the holiday.

6. Holiday Leave: Unit employees who are not normally required to work on a holiday (generally employees with non-patrol assignments, such as to the Detective Division, Personnel & Training, or Internal Affairs) are paid eight (8) hours of holiday leave at straight time for time off on each holiday listed above.

B. Annual Leave

Annual Leave shall be as provided in the Personnel Manual. Annual Leave accrues over the course of a year as follows:

1st through 5th year 176 hours per year
6th through 10th year 216 hours per year
11th through 15th year 232 hours per year
16th through 17th year 240 hours per year
18th through 19th year 248 hours per year
20th through 24th year 256 hours per year
25th year and later 264 hours per year

C. Bereavement Leave

An employee represented by the Association shall be entitled to four (4) days of leave with pay, plus one unpaid day (which may be compensated using annual leave) , for the death of a family member. All provisions of the Personnel Manual regarding Bereavement Leave shall apply.

Family member includes:

Husband Mother-in-Law

11 Wife Father-in-Law
Father Sister-in-Law
Mother Brother-in-Law
Child Legal Guardian
Brother Step-Child
Sister Step-Father
Grandparent Step-Mother
Grandchild Step-Mother-in-Law
Step-Father-in-Law Registered Domestic Partner

D. Family & Medical Leave

In accordance with the California Family Rights Act and the federal Family and Medical Leave Act, the City of Salinas Family & Medical Leave Policy is detailed in the Administrative Memorandum 94-1, as revised.

SECTION 9 – WORKING CONDITIONS

A. Grievance/Disciplinary Action Appeal Procedure

The Grievance/Disciplinary Action Appeal Procedure for employees in this Unit is set forth in the Personnel Manual. No employee shall suffer retaliation resultant from use of this procedure.

B. Schedules

Personnel assigned to patrol are normally scheduled to work 10-hour and 40-minute shifts. The Chief of Police may authorize other schedules as appropriate, including a four -ten plan with four 10-hour days each week. The Police Chief has the right to change and implement work schedules for all unit personnel, consistent with the needs of the Salinas Police Department and the community subject to completing any legally required bargaining under the MMBA.

SECTION 10 – COMMITTEES

A. Safety Committee

The City and the Association shall cooperate in pursuing safe working practices. In the interest of increasing safety within City operations and consistent with existing City policy, the Association may appoint one (1) member to serve on any safety commit tee within the scope of Association representation. The rotation policy (six -month rotation, 1 -year term) shall apply. Recommendations of the Safety Committee shall be referred to the City Manager for review and action if deemed appropriate by the City Manager.

B. Deferred Compensation Committee

The City's Deferred Compensation Committee may include one (1) employee designated by 12 the Association. The designated employee must be a participant in the City's Deferred Compensation Program with Trust Deed Program investments.

SECTION 11 – TERM
The term of this Memorandum of Understanding shall commence January 1, 20 26, and shall expire December 31, 2028, except as otherwise provided in this Memorandum of Understanding. Proposals for change and/or renewal shall be submitted by October 1, 2028.

Dated __________________________ Dated _________________________

CITY OF SALINAS SALINAS POLICE MANAGERS ASSOCIATION
_____________________________ ____________________________ By: René Mendez By: Ruben Sanchez
City Manager President
Appendix A
Position
Step 1
Hourly
Step 1
Monthly
Step 2
Hourly
Step 2
Monthly
Step 3
Hourly
Step 3
Monthly
Step 4
Hourly
Step 4
Monthly
Step 5
Hourly
Step 5
Monthly
Step 6
Hourly
Step 6
Monthly
Deputy Chief of
Police 89.0945 15,443 93.5551 16,216 98.2346 17,027 103.1467 17,879 108.3052 18,773 113.7205 19,712 Police Commander 82.7753 14,348 86.9178 15,066 91.2589 15,818 95.8210 16,609 100.6180 17,440 105.6489 18,312 Police Sergeant 70.1054 12,152 73.6150 12,760 77.2938 13,398 81.1640 14,068 85.2253 14,772 89.4866 15,511

1 MEMORANDUM OF UNDERSTANDING

BETWEEN

THE CITY OF SALINAS
AND

THE SALINAS POLICE OFFICERS ASSOCIATION

SECTION 1 – PREAMBLE

This Memorandum of Understanding is entered into by the City of Salinas (“City”) and the Salinas Police Officers Association (“Association”). “Employee” for the purpose of this Memorandum of Understanding means all regular personnel in Job Classifications found in Appendix A attached hereto. This Memorandum of Understanding is subject to Sections 3500 -3510 of the Government Code of the State of California, otherwise known as the Meyers-Milias-Brown ("MMB") Act, and the City of Salinas Charter and Municipal Code.

SECTION 2 – NO ABROGATION OF RIGHTS

The parties acknowledge that the City rights and employee rights as indicated under Chapter 25, Sections 31 and 32, of the Salinas Municipal Code, and all applicable state or municipal laws, the City Personnel Manual, the Salinas Police Department Policy Manual, and the rights of the City Council are nei ther abrogated nor made subject to the meet and confer process by the adoption of this Memorandum of Understanding.

The City also agrees to act in accordance with the provisions of the Public Safety Officers Procedural Bill of Rights as provided in Government Code Sections 3300, et seq.

SECTION 3 – PAST PRACTICES

The parties agree that this Memorandum of Understanding supersedes any past practice covered by this Memorandum of Understanding but does not affect any other written agreements agreed to by the parties not addressed in this Memorandum of Understanding. S uch prior written agreements shall continue in full force unless they no longer apply.

SECTION 4 – NO DISCRIMINATION

The City and the Association will cooperate in pursuing a policy of no discrimination. Unit employees shall have the right to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation o n all matters of employer -employee relations including wages, hours, and other terms and conditions of employment. No such employee shall be interfered with, restrained, coerced, or discriminated against by the City or the Association because of his/her exercise of the rights established by law.

Employees electing not to join the Association may not be represented by the Association or its affiliated representative. An employee not joining the Association is exercising his or her rights to self-representation.

2 Nothing in this section prevents the Association and its representative from representing its members in accordance with the Memorandum of Understanding, state and federal law, and the City of Salinas Personnel Manual.

SECTION 5 – RECOGNITION MATTERS

A. Recognition

Pursuant to Sections 3500 -3510 of the Government Code of the State of California, and Chapter 25, Section 37, of the Salinas Municipal Code, the City has certified the Association as the recognized employee organization consisting of regular employees fill ing classes designated in Appendix A.

B. Dues Collection

The City shall deduct Association membership dues in an amount designated by the Association, and any other mutually agreed upon payroll deduction from the pay of member employees.

The Association shall indemnify and defend and hold the City of Salinas harmless against any claims made and against any suit instituted against the City of Salinas on account of collection of Association dues and other mutually agreed upon payroll deductions. In addition, the Association shall refund to the City of Salinas any amounts paid to it in error upon presentation of supporting evidence.

SECTION 6 – PAY RATES AND PRACTICES

A. Wages

1. Effective January 5, 2026, bargaining unit members will receive a 3.0% cost -of-living adjustment plus 2.0% market adjustment, for a total of 5.0% increase to the salary schedule.

2. Effective in the first full pay period of January 2027, bargaining unit members will receive a 2.0% increase to the salary schedule.

3. Effective in the first full pay period of July 2027, bargaining unit members will receive a

2.0% increase to the salary schedule.

B. Bilingual Premium

A premium pay of five percent (5%) of base salary shall be paid to an employee assigned by management to speak and use Spanish in the course of the employee’s duties, effective in the first full pay period following approval by Human Resources . This section is subject to administrative direction.

3 C. Special Assignment Pay

The City has established the following categories of special assignment pay.

1. Temporary Upgrade Pay (Special Assignment Pay While Working Out of Class). An employee who is assigned by the Chief of Police to perform all the duties of a higher position and classification for a limited duration (up to 960 hours each fiscal year), without maintaining the duties of his/her current position, shall receive a five percent (5%) Temporary Upgrade Pay while so assigned. Such pay shall be based on the employee's established base salary.

2. Special Assignment Pay While Performing Additional Responsibilities. An employee who is assigned by the Chief of Police a significant increase in duties and responsibility in his/her classification may receive a ten percent (10%) special assignment pay. Such pay is authorized on recommendation of the Chief of Police with approval of the Human Resources Director It may be paid for special assignments of not less than two (2) weeks nor more than three (3) months duration. The City Manager may approve additional special assignment pay beyond three (3) months for exceptionally difficult long-range assignments.

D. Differentials/Premiums

The Police Chief may make special assignments in his/her discretion. The following premiums are effective in the first full pay period following notice to Human Resources of an assignment; no retroactive payment of premiums is owed. Premiums are calculated at 5% of base pay.

1. Motorcycle Patrol Premium – 5%

A unit employee routinely and consistently assigned by management to operate and/or patrol on motorcycle duty shall receive a Motorcycle Patrol Premium of five percent (5%) above current step subject to administrative direction.

Employees so assigned shall be reimbursed for the purchase of motorcycle boots and helmets as needed. Need shall be defined by management. The City will provide reasonably required material for cleaning and maintenance of the motorcycle as defined by the City. All cleaning and maintenance must be performed during normal work hours.

2. Canine Officer Premium – 5%

A unit employee routinely and consistently assigned by management to handle, train, and board a canine shall receive a Canine Officer Premium of five percent (5%) above current step, in the first full pay period following assignment with a canine, subject to administrative direction.

4 The City and the Association reasonably approximate that canine officers spend four (4) hours per workweek, while otherwise off duty, walking, grooming/cleaning, feeding, training, and otherwise caring for and maintaining the canine. Four (4) hours per workweek at one and a half (1½) times the employee’s hourly rate is paid for such time, in addition to the 5% premium described above. This additional compensation is intended to compensate for all off-duty care of the canine and related activity; payment will be processed automatically during the assignment, without a need for overtime slips. In the event of a medical emergency or other unusual circumstance requiring extraordinary care for the canine, the canine officer must notify a supervisor as soon as possible of any additional time required.

In addition, veterinarian fees, food costs, and other reasonable expenses for the upkeep of the canine are reimbursed upon proper request for reimbursement.

3. Detective Division Premium – 5%

Police Officers who are routinely and consistently assigned to the Detective Division may receive a Detective Division Premium of five percent (5%) above current step subject to administrative direction.

4. Police Liaison Premium (Community Relations/SRO) – 5%

Police Officers who are routinely and consistently assigned to function as a liaison between special persons, groups, or courts and the Police Department (while assigned to Community Relations or as a School Resource Officer) may receive a Police Liaison Premium of five percent (5%) above current step subject to administrative direction.

5. Crime Scene Investigator Premium – 5%

A unit employee routinely and consistently assigned by management to analyze and explore crime scene s on Crime Scene Investigation (CSI) duty shall receive a CSI Premium of five percent (5%) above current step subject to administrative direction.

6. Field Training Officer Training Premium – 5%

A unit employee routinely and consistently assigned by management to train employees on field training officer (FTO) duty shall receive a Training Premium of five percent (5%) above current step subject to administrative direction , effective in the first full pay period following notice to Human Resources of the assignment of a trainee to the FTO.

7. Gang Detail (Violence Suppression Task Force) Assignment Premium – 5%

A unit employee routinely and consistently assigned by management to the Gang Detail (Violence Suppression Task Force) Assignment, to enforce laws relating to a group of individuals banded together for unlawful activities, shall receive a Gang Detail

5 Assignment Premium of five percent (5%) above current step subject to administrative direction.

8. Police Administrative Officer Premium (Personnel & Training/Internal Affairs) – 5%

A unit employee routinely and consistently assigned to police administration to provide support for the Police Chief and command staff in the operation of the Police Department, while serving in the Personnel and Training Unit or in Internal Affairs, receives a Police Administrative Officer Premium of five percent (5%) above current step subject to administrative direction.

9. Drone Operator Premium – 5%

A unit employee licensed and assigned as a Drone Operator receives a premium of five percent (5%) above current step subject to administrative direction.

10. SWAT Premium – 5%

A unit employee assigned to Special Weapons and Tactics (SWAT) receives a premium of five percent (5%) above current step subject to administrative direction.

E. On-Call Pay for Detectives

A detective who is assigned to be on-call shall receive on-call compensation in the amount of $5.00 per hour of assignment, unless called in to work (in which case the employee is paid for time worked instead). On-call pay shall begin at the conclusion of the employee's regular shift.

F. Court Pay

1. Off-duty court pay shall be a minimum of four (4) hours pay or comp time (Officer's option) at time and one half (1-1/2) based on the employee’s regular rate.

2. a. If an officer is required to be available for a court appearance for more than four (4) hours of otherwise off-duty time, court pay will be calculated from subpoena appearance time until the officer is released from court duty for the day.

b. If there is a break of at least four (4) hours between the time the officer is released to the time the officer is required to return on the same day, the officer will receive four (4) hours pay at time and one half (1-1/2) for each appearance.

c. Court compensation will be no more than eight (8) hours per day, unless more hours are actually worked.

3. If a court appearance is scheduled within two (2) hours of the beginning of an officer's shift, compensation shall be time and one half (1 -1/2) from time of subpoena until beginning of shift.

6 4. It is the responsibility of the subpoenaed officer to check the status of any subpoena, as provided in the Salinas Police Department Policy Manual , after 1800 (6:00 p.m.) hours on the prior court day to ascertain if a court appearance has been canceled. In the event of a court cancellation entered into the City notification systems after 6:00 p.m. on the preceding day but before 5:00 a.m. on the court day, the officer shall receive a two (2) hour minimum at straight time. In the event of a court cancellation entered into the City notification systems at or after 5:00 a.m. on the court day, the officer shall receive the four (4) hour minimum set forth in Paragraph 1, above, if not otherwise scheduled to work during the time of the cancelled appearance . The applicable court pay is determined by when the cancellation is entered into the City notification system, not the time the officer checks the system.

G. Overtime

A unit employee required to work beyond his/her regularly scheduled work shift shall be compensated at a premium of one and a half (1½) times the employee’s regular rate (as defined under the Fair Labor Standards Act (FLSA)) for the excess hours worked.

Overtime calculations shall include paid leave time (including, but not limited to, annual leave, bereavement leave and compensatory time off) and shall be considered time worked.

Pursuant to 29 USC section 207(k), for purposes of FLSA overtime, the work period is 28 days with 171 hours.

H. Night Shift Differential

$25.00 per shift differential payment will be paid to unit employees who are routinely and consistently scheduled to work shifts at midnight. Being on duty at midnight includes those employees whose assigned shift either ends or begins at midnight. No night shift differential will be paid for overtime hours worked.

I. Master Police Officer Incentive Pay

The City will establish a Master Police Officer Incentive Pay Program effective in the first full pay period of January 2017 for employees that satisfy all of the following criteria:

a. An overall performance evaluation rating of meets standards or better for the period most recently evaluated.
b. At least 8 years of law enforcement experience as a sworn peace officer. c. Possession of an Advanced POST Certificate.
d. Completion of at least 40 hours of Crisis Intervention Training (CIT) within five years or, if CIT training is older than five years, completion of approved refresher training within five years.
e. Current performance of at least one (1) of the following collateral duties/special assignments with the Salinas Police Department: Canine Officer, Community Relations

7 Officer (Police Liaison), Violence Suppression Unit/Gang Task Force (Gang Detail Assignment), Detective Division/Police Investigator, Training Instructor (e.g., defensive tactics, less lethal, EVOC, use of force, etc.), Range Master, School Resource Officer or Police Activities League (Police Liaison/Drug Abuse Resistance Education), Traffic Detail/Motorcycle Patrol, Crime Scene Investigator, Field Training Officer, SWAT, or Personnel & Training/Internal Affairs (Police Administrative Officer).

Employees who satisfy the criteria set forth above shall receive a three percent (3%) Master Police Officer pay incentive , effective in the first full pay period of ratification and approval of this MOU and following verification of criteria by Human Resources.

Effective in the first full pay period of January 2025 and following verification of criteria by Human Resources, employees who satisfy the criteria set forth above and have a total of twelve years of law enforcement experience as a sworn peace officer shall receive an additional two percent (2%) for a total incentive pay of five percent (5%).

SECTION 7 - BENEFITS

A. Health, Dental, and Vision
The City shall contribute amounts toward the premiums for Peace Officers Research Association of California (PORAC) coverage or other City sponsored PERS plan of the employee’s choice, for which the employee is eligible, for the employee and eligible dependents as follows. The City will continue with the full amount of premiums for current supplementary dental and vision plans available to City employees and eligible dependents.

The City will contribute an amount toward monthly health benefits premiums for eligible bargaining unit employees as follows.

Effective with the start of the 2025 plan year, the City will contribute toward monthly health benefits premiums in an amount equal to 94% of the premium for the plan and level of coverage the employee has selected, up to a maximum of 94% of the cost of the premium for the PORAC plan.

The employee shall share in the cost of health coverage and pay for premium costs above the City’s contribution through payroll deductions.

Employees enrolled in the City’s medical program under the California Public Employees’ Medical and Hospital Care Act (“PEMHCA”) receive a contribution by the City equal to the statutory minimum monthly contribution under PEMHCA. The City contribution amo unts described above shall include the PEMHCA statutory minimum contribution.

In the event that new legal requirements of the Affordable Care Act (ACA) are effective during the term of this Memorandum of Understanding, the parties agree to re -open on the limited subject of achieving legal compliance with the ACA.

8 An employee may elect to waive the City’s health insurance coverage, if the employee complies with the following conditions:

1. The employee and all individuals in the employee’s tax family have alternative Minimum Essential Coverage as defined by the ACA through a provider other than Covered California; and

2. The employee provides affirmation or proof to Human Resources of the alternative Minimum Essential Coverage at hire, if applicable, and annually during the City’s health insurance open enrollment period.

B. Retiree Medical Benefit

Employees who retire from the City and qualify as “annuitants” under PEMHCA are enrolled by CalPERS in the applicable group health plan as a retiree. As required by applicable statutes or regulations, annuitants must enroll in Medicare at age 65 or as soon as they become eligible.

The City will pay (1) the PEMHCA minimum contribution for annuitants, and (2) twenty-five (25%) percent or $100 per month (whichever is less) of the employee and spouse medical insurance premium for employees retiring from the City who qualify as annuitant s and who were hired with the Salinas Police Department before July 1, 2019. The City payment of the additional benefit beyond the PEMHCA minimum contribution shall be provided for no more than ten (10) years for each employee, and shall be discontinued when the employee or spouse becomes eligible for Medicare coverage, whichever is earlier.

Upon request from the Association, the City will enter into a Side Letter Agreement allowing all employees covered by this Agreement to participate in a retiree medical expense reimbursement plan administered by the PORAC Retiree Medical Trust. The trust shall be and remain separate and apart from any employer health insurance funding program. The City and the Association acknowledge that the Side Letter Agreement shall specify that the program shall be implemented in a manner that is cost -neutral for the City. The Association shall pay for the administrative costs arising from the enrollment of the Association in the PORAC Retiree Medical Trust and the City shall not be required to pay any fees or make any contributions on behalf of individual employees.

C. Long Term Disability

The Association shall maintain a separate account for City contributions to the Association-sponsored Long Term Disability Plan and shall apply such contributions solely to the Association-sponsored plan. The City contribution per Association employee sha ll not exceed the City's per employee rate for the City ’s Long Term Disability Plan, or the per employee rate of the PORAC Premier Plus Long Term Disability Plan, whichever is less.

D. Tuition Assistance

An employee shall be allowed up to five hundred dollars ($500) per fiscal year for reimbursement for eligible educational expenses upon successful completion of a voluntary

9 academic course of study and/or individual course approved by the Chief of Police and the Human Resources Director. Eligible expenses are defined as costs for classes which meet the following criteria:

• Approval is obtained prior to attending class

• Are directly related to an employee's job duties

• Receive college units, POST training credit, CEU credit, or are offered/presented by a bona fide, recognized firm or institution with direct knowledge of and experience in the curriculum offered

• For which class and study time are outside of the employee's work hours

• For which successful completion (academic grade of C or better or a certificate of completion) is provided. Reimbursement will not be made without such documentation.

Reimbursement for training classes, seminars and workshops which are not part of an academic course of study is limited to the cost of registration only. Expenses for lodging, meals, travel, and other related expenses are not reimbursable under this program. Expenses for books, class fees, and/or class supplies for college classes which are part of an academic course of study will be eligible for reimbursement under this program.

E. Uniform Allowance

The Police Department issues to each employee uniform clothing and items for personal health and safety, as listed in Attachment B, through a vendor selected by the Department.

Such employees receive a monthly payment of $100 beginning with the first month of employment to cover expenses of uniform replacement and maintenance. The monthly amount is prorated in the first month for newly hired employees.

F. POST Certificate Pay

1. Intermediate Certificate: An employee who has a POST Intermediate Certificate shall receive a premium pay of three and a half percent (3.5%) of base salary.

2. Advanced Certificate: An employee who has a POST Advanced Certificate shall receive a premium pay of three and a half percent (3.5%) of base salary, in addition to POST Intermediate Certificate Pay (3.5%), for a total of seven percent (7%) of base salary.

An employee who becomes eligible for the POST Certificate Pay shall retain that eligibility while employed in a classification represented by the Association. POST Certificate Pay is effective in the first full pay period following the employee’s submission of an Immediate or Advanced Certificate to Human Resources.

10 G. Fitness Exam for SWAT Assignment

Assignment and reassignment to the Special Weapons and Tactics (SWAT) unit is conditioned on successful completion of a SWAT fitness exam. The exam will be the SWAT Physical Fitness Test Agility Course. The exam may be amended from time to time upon mutu al agreement of the Police Chief and the Association. Changes in assignment/reassignment from the SWAT unit are solely a management right and not subject to approval or grievance.

H. PERS Retirement Program

1. Classic Employees

The City shall provide the PERS Police Public Safety Retirement Program 3% @ 50 benefit for employees hired before July 1, 2011. The City provides the 3% @ 55 formula for employees hired on or after July 1, 2011.

Employees contribute nine (9%) percent of the employee’s compensation toward the cost of this retirement benefit as cost sharing. Each classic employee shall contribute an additional one percent (1%) toward the employer contribution to his/her pension benefit (for a total 10% employee pension contribution). Effective in the first full pay period in January 2017, each classic employe e shall contribute an additional one percent (1%) toward the employer contribution to his/her pension benefit (for a total 11 % employee pension contribution).

Effective in the first full pay period in January 2018, each classic employee shall contribute an additional one percent (1%) toward the employer contribution to his/her pension benefit (for a total 12% employee pension contribution).

2. New Members

The formulas above do not apply to persons who are defined as “new members” under the Public Employees’ Pension Reform Act of 2013 (“PEPRA”).

“New members” under PEPRA are subject to all applicable PEPRA provisions, including the

2.7% @ 57 formula. Each new member will contribute 50% of the normal cost of his/her benefit as determined by CalPERS.

I. Longevity Pay

Effective September 12, 2016, employees who have attained ten (10) years of regular service with the City of Salinas Police Department shall receive a three percent (3%) longevity pay incentive. Employees who have attained twenty (20) years of regular service with the City of Salinas Police Department shall receive a longevity pay incentive of an additional five (5%) percent base salary in recognition of their time in service for a total of eight percent (8%) in longevity pay. No employee shall receive more than eight percent (8%) in longevity pay incentives. Longevity pay is effective in the first full pay period following the employee’s anniversary date.

11 J. Blood Donation

An employee may be granted paid release time of up to a maximum of one (1) hour for donating blood during scheduled hours of work. The length of the leave must be approved in advance by the supervisor. Approval or denial of this leave shall be within the sole discretion of the Department.

SECTION 8 - LEAVE PROVISIONS

A. Holidays

1. Fixed Holidays Date
New Year's Day January 1
Martin Luther King Third Monday in January
Lincoln’s Birthday February 12
Presidents’ Day Third Monday in February
Cesar Chavez Day March 31
Memorial Day Last Monday in May
Juneteenth June 19
Independence Day July 4th
Labor Day First Monday in September
Veterans Day November 11
Thanksgiving Day Fourth Thursday in November
Friday after Thanksgiving Day after Thanksgiving
Christmas Eve December 24
Christmas Day December 25

2. Every day appointed by the President or Governor for a public day of mourning, thanksgiving, or holiday, when ratified by the Mayor or the Salinas City Council.

3. All holidays are calculated as eight (8) hours.

4. Holiday Leave: Unit employees who are not normally required to work on a holiday (generally officers with non-patrol assignments, such as to the Detective Division, Personnel & Training, or Internal Affairs) are paid eight (8) hours of holiday leave at straight time for time off on each holiday listed above.

5. Holiday Pay: In recognition of the fact that other bargaining unit employees (including patrol officers) are normally required to work on an approved holiday because they work in positions that require scheduled staffing without regard to holidays, in lieu of receiving time off for holidays, such unit employees will be paid 4.31 hours of pay n each biweekly paycheck (i.e., 112 hours per year). This pay consists of base pay plus any applicable bilingual premium, temporary upgrade pay, special assignment pay (additional duties), motor patrol premium, canine officer premium, detective division premium, police liaison premium, CSI premium, FTO premium, VSTF premium, administrative officer premium, master officer incentive pay, POST certificate pay, and

12 longevity pay. Usual wages are paid for time worked; no premium is paid for working on a holiday. If an employee was scheduled to work on a holiday, the employee must use accrued annual leave or compensatory time off for any approved leave on the holiday.

B. Annual Leave

Annual Leave shall be as provided in Section 11.4 of the Personnel Manual. Annual Leave accrues over the course of a year as follows:

1st through 5th year 176 hours per year
6th through 10th year 216 hours per year
11th through 15th year 232 hours per year
16th through 17th year 240 hours per year
18th through 19th year 248 hours per year
20th through 24th year 256 hours per year
25th year and later 264 hours per year

C. Bereavement Leave

An employee represented by the Association shall be entitled to four (4) days of leave with pay for the death of a family member, plus one unpaid day, based on the number of hours regularly scheduled. All provisions of the Personnel Manual regarding Bereavement Leave shall apply.

Family member includes:

Husband Mother-in-Law
Wife Father-in-Law
Father Sister-in-Law
Mother Brother-in-Law
Child Legal Guardian
Brother Step-Child
Sister Step-Father
Grandparent Step-Mother
Grandchild Step-Sister
Step-Mother-in-Law Step-Brother
Step-Father-in-Law Registered Domestic Partner

D. Family & Medical Leave

Family and medical leave is provided in accordance with the California Family Rights Act and the Federal Family and Medical Leave Act, as detailed in the Administrative Memorandum 94-1, as revised.

13 SECTION 9 - WORKING CONDITIONS

A. Grievance/Disciplinary Action Appeals Procedure

The purpose of this Grievance Procedure is to promote communication and improve employer- employee relations by establishing a process to encourage settlement of disputes. The parties recognize that it is in their mutual interest to resolve problems expedi tiously at the lowest possible administrative level. Any resolution of dispute at this level must be consistent with the terms of this Memorandum of Understanding.

1. Grievance Definition
A grievance shall be defined as an alleged violation of the Meyers -Milias-Brown Act (“MMBA”), or a dispute arising from the application or interpretation of any section of this Memorandum of Understanding; the City of Salinas Municipal Code; Department policies, procedures, rules or regulations; or the City Personnel Rules.

2. Procedure for Grievances
Step 1 – Informal Resolution
In the event an individual employee wishes to lodge a grievance, he or she will, within 14 calendar days of the incident being grieved, discuss the grievance with his/her immediate supervisor, notifying the supervisor that this discussion is the first step in the grievance procedure. There is no requirement for the employee to submit the grievance in writing at this point. If the grievance is not resolved to the Grievant’s satisfaction, the Grievant must advance the grievance to Step 2 of this Grievance Procedure within 45 calendar days from the date the Grievant knew or reasonably should have become aware of the alleged violation. Grievances filed by the Association on behalf of one or more members may be filed at Step 2 within 45 calendar days from the date the Association knew or reasonably should have become aware of the alleged violation.

Step 2 – Police Chief
A Step 2 grievance shall be submitted to the Chief of Police in writing with a copy to the Human Resources Director. The written grievance shall contain the following information:
a) a statement of the grievance, the facts upon which it is based, and the person(s) involved;
b) the specific section(s) of the MMBA, this Memorandum of Understanding, the City Personnel Rules, the City of Salinas Municipal Code, or Department policies, procedures, rules, or regulations alleged to have been violated; c) a summary of informal resolution efforts; and
d) the remedy requested.

14 The Chief of Police or designee shall respond in writing within fifteen (15) working days of receipt of the written grievance. The written response at this step (and all management responses at all steps hereafter) shall contain the following information:
a) a response to the facts upon which the grievance is based; b) an analysis of the alleged violation; and
c) a response to the remedy requested;
If the grievance is not resolved to the Grievant’s satisfaction, the Grievant shall advance the grievance to Step 3 of this Grievance Procedure within ten (10) working days from the date of receiving the written response from the Chief of Police or designee.

Step 3 – City Manager
A Step 3 grievance shall be submitted to the City Manager in writing. The written grievance shall contain the following information:
a) a copy of the Step 2 grievance;
b) a copy of the Chief’s response to the Step 2 grievance; and c) a response by the Grievant to the Chief’s Step 2 response.

The City Manager or City Manager’s designee shall meet with the Grievant or the Grievant’s representative within thirty (30) calendar days of receipt of the written grievance. The City Manager or City Manager’s designee shall provide a written response within ten (10) working days of the date of discussion with the Grievant or the Grievant’s representative.

If the grievance is not resolved to the Grievant’s satisfaction, the Grievant shall advance the grievance to Step 4 of this Grievance Procedure within ten (10) working days from the date of receiving the written response from the City Manager or City Manager’s designee.

Step 4 – Grievance Board
The Grievance Board is composed of three members and one alternate. The first two members are appointed by City Council as described in Section 25 -43 of the Salinas Municipal Code, with one member nominated by City management and a second member selected from a list of nominations by the employee organizations.

For each appeal, a third member shall be selected by the City and the Association to serve temporarily on the Grievance Board, as follows. If the parties are unable to mutually agree on the selection of an arbitrator, the names of seven (7) arbitrators shall be obtained from the California State Mediation and Conciliation Service. By coin toss, the losing party shall strike one (1) name from the panel list. The other party shall strike one (1) name alternately until only one (1) name remains, who shall serve as the third member arbitrator.

15 The City and the Association agree to divide equally the cost of the arbitrator and any court reporter. Each party shall bear their own respective costs of making their presentation to the arbitrator, including but not limited to, their own attorney fees, expert witness fees, regular witness fees, and related costs.

The Grievance Board decision shall be advisory to the City Council. The Grievance Board shall issue a written decision within forty-five (45) calendar days of the close of the hearing.

The City Council shall maintain the authority to affirm, reverse, or modify the Grievance Board’s award. Absent a stipulation between the parties, any failure of the City Council to take action within 45 calendar days of the Grievance Board’s award shall serve to affirm the award.

3. Procedure for Disciplinary Appeals
An appeal from disciplinary action shall be in writing and subject to the following procedure. Written reprimands are not appealable, but an employee may submit written comments in rebuttal.

The employee may appeal disciplinary action (post -Skelly) by submitting a written notice of appeal within ten (10) working days of receipt of notification of disciplinary action from the City Manager or his/her designee. The written notice shall be directed to the Director of Human Resources.

The appeal shall be heard by the Grievance Board as described in Step 4 above. The City Council shall maintain the authority to affirm, reverse, or modify the Grievance Board’s award, as stated in Step 4 above.

4. Time Limits
Any time limits specified in this Grievance Procedure / Disciplinary Appeal Procedure may be extended by mutual agreement. Requests for an agreement to extend any deadline shall be confirmed in writing.

B. Comp Time

Accumulation of comp time, in lieu of overtime compensation, shall be limited to 160 hours with an option of full buy -out at the appropriate rate of pay upon separation subject to administrative direction. Comp time accrual is limited to overtime worked c overing regular shifts; it does not accrue for working special events or grant -funded activities or other situations for which the City may seek reimbursement (where employees will be paid out for any overtime) and does not accrue for holiday pay.

C. Pre-scheduled Overtime

If a change in scheduling requires an officer to work two (2) hours or less during his/her off-duty hours, he/she shall receive a minimum of two (2) hours pay at one and a half (1 -1/2) times the employee’s regular rate. This minimum does not include hours contiguous with

16 his/her scheduled shift.

D. Field Operations

1. Shift Assignments

Officers sign up for shifts by seniority.

Officers may request shift preference for reasons of personal hardships, etc.

2. Holidays

Police Officers assigned to duty on a holiday may request and be allowed to take the day off if the shift is adequately staffed as determined by the Watch Commander.

Priority for granting Officers’ requests for holidays off is on a first -come first-served basis.

3. Vacations

Vacation time will normally be scheduled in weekly increments by watch. For employees with less than sixteen (16) years tenure with the City, vacation time may not exceed three (3) consecutive weeks in any calendar year. For employees with sixteen (16) years or more tenure with the City, vacation time may not exceed four (4) consecutive weeks in any calendar year. Vacation time is generally limited to no more than thirty (30) working days in any calendar year. Vacation time off is limited to two (2) officers per watch, with generally no more than 12 officers scheduled to be out per day (using either annual leave or compensatory time off). Vacation scheduling will be determined by seniority. The Police Chief may grant exceptions to the vacation scheduling rules based on the needs of the City and the requests of the employees and as required by law.

Any of the vacation periods having an unassigned slot may be applied for by seniority with the Division Commander’s approval.

Police Officers may exchange vacation slots with each other with the Division Commander’s approval.

Police Officers may take vacations out of their assigned time period, if staffing permits and with Division Commander’s approval.

Field Training Officers (FTOs) will be provided a separate vacation schedule in which they may sign up by seniority.

When the Field Training Officers’ vacation schedule is completed and compared against the supervisory schedule, no conflicts shall be allowed, such as a Field Training

17 Officer (FTO) and his/her Sergeant being off in the same vacation slot. In the event of a conflict, the Division Commander will make the decision if the parties cannot resolve the conflict between themselves.

4. Schedules

The Chief of Police has the right to change and implement work schedules for all unit personnel, consistent with the needs of the Salinas Police Department. In the event that the Chief changes work schedules during the term of the MOU, the Chief has the right to implement such changes following the completion of any legally required meet and confer and impasse requirements.

E. Investigation Shift Assignments

Detectives are assigned shifts based on departmental needs, individual experience and capabilities as determined by the Division Commander.

F. Scheduling Coverage

A unit employee shall not have his/her regularly scheduled days off changed except in the event of an emergency or in accordance with Departmental policy. Nothing in this section shall be interpreted to limit the Department’s authority to require an emplo yee to work on his or her regularly scheduled days off and compensate the employee at his or her applicable rate of pay.

Supplemental Law Enforcement: The parties agree that public safety is of paramount concern to both parties as well as the community we serve. Therefore, the City and the Association agree to meet following approval of this Memorandum of Understanding to work together to address iss ues related to law enforcement staffing for special events, and staffing options related to emergency situations. How supplemental law enforcement may be used shall also be considered in these meetings.

G. Training Activities

The City shall implement training activities to provide each employee with a minimum of forty (40) hours every two (2) years of POST-certified training. These POST-certified training hours shall be provided only if POST provides reimbursement consistent w ith the POST reimbursement program in effect.

SECTION 10 – COMMITTEES

A. Safety Committee

The City and the Association shall cooperate in pursuing safe working practices. In the interest of increasing safety within City operations and consistent with existing City policy, the Association may appoint one (1) member to serve on any safety commit tee within the scope

18 of Association representation. The rotation policy (six -month rotation, 1 -year term) shall apply. Recommendations of the Safety Committee shall be referred to the City Manager for review and action if deemed appropriate by the City Manager.

B. Deferred Compensation Committee

The City's Deferred Compensation Committee may include one (1) employee designated by the Association. The designated employee must be a participant in the City ’s Deferred Compensation Program with Trust Deed Program investments.

SECTION 11 – MISCELLANEOUS

A. Accommodations for Employees with Disabilities

The City grants reasonable accommodations to employees with disabilities as required under the Americans with Disabilities Act (ADA) and the Fair Employment and Housing Act (FEHA). To avoid disability discrimination, the City may modify provisions of this Memorandum of Understanding and its Personnel Manual and other policies relative to hiring, promotion, transfer, layoff, reassignment, termination, rehire, rates of pay, job classification and duties, seniority, leaves of absence, benefits, training opportunities, hours of work, or other terms and privileges of employment. Any accommodation provided to an individual protected by the ADA or FEHA shall not establish a past practice or be used or cited as past practice in any grievance procedure.

SECTION 12 – TERM

The term of this Memorandum of Understanding shall commence upon January 1, 2026 and shall expire on December 31, 2027. Proposals for change and/or renewal shall be submitted by October 1, 2027.

Dated __________________________ Dated _________________________

CITY OF SALINAS SALINAS POLICE OFFICERS ASSOCIATION

_____________________________ ____________________________ By: René Mendez By: A. Christopher Avila
City Manager President
Appendix A
Position
Step 1
Hourly
Step 1
Monthly
Step 2
Hourly
Step 2
Monthly
Step 3
Hourly
Step 3
Monthly
Step 4
Hourly
Step 4
Monthly
Step 5
Hourly
Step 5
Monthly
Step 6
Hourly
Step 6
Monthly
Step 7
Hourly
Step 7
Monthly
Police Officer-New Hire 49.5918 8,596 52.0715 9,026 54.6735 9,477 57.4054 9,950 60.2755 10,448 63.2906 10,970 66.4551 11,519 Police Officer 49.5918 8,596 52.0715 9,026 54.6735 9,477 57.4054 9,950 60.2755 10,448 63.2906 10,970 66.4551 11,519 Police Recruit 44.6326 7,736

20 APPENDIX B

UNIFORM CLOTHING & EQUIPMENT – LATERAL / ACADEMY GRAD
SUMMIT UNIFORM CORP.

QTY. ITEM*
2 Navy Wool Pants
2 Navy Wool Shirts
1 Duty Jacket
1 w/ Cloth Name Tag
1 Rain Jacket
1 Rain Hood
1 Rain Pants
1 Black Tie
1 Tie Bar
1 Velcro Duty Belt
1 Velcro Pant Belt (Under Belt)
4 Keepers – Hidden Snap
1 Double Cuff Case – Hidden Snap
1 Key Silencer
1 26” ASP Baton
1 26” ASP Holder
1 Closed OC Holder
1 Holster (Level 3 / P320)
1 Mag Pouch (Triple P320 .45 / Dbl P320
9mm)
1 Light Holder
2 Handcuffs
1 Badge holder

21 1 Blackington Name Tag
1 Class A Hat
1 Rain Cover for Hat
1 Class A Hat Piece
1 Florescent Traffic Vest
1 Flashlight
1 Boots
1 Ballistic Vest

*Items provided are subject to change.

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-558, Version: 1
Establishment of 2026 Residential Rental Registration and Rent Stabilization Program Fees, Revenue and Expenditures
Approve Resolution(s) amending Rental Registry Fees established by Resolution No. 23170 (N.C.S.) to be $29.00 effective January 1, 2026, and integrating the new fee amount into the City’s Schedule of Fees and Charges for City Services; amending Rent Program Fees established by Resolution No. 23169 (N.C.S.) to be $112.00 effective January 1, 2026, and integrating the new fee amount into the City’s Schedule of Fees and Charges; and establishing the appropriation for 2026 Rental Registration and Rent Stabilization Program revenue and expenditures in the amount of one million one hundred twenty-eight thousand eight hundred fifty- one dollars ($1,128,851).

City of Salinas Printed on 12/5/2025Page 1 of 1
powered by Legistar™

Page | 1

CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: DECEMBER 9, 2025
DEPARTMENT: COMMUNITY DEVELOPMENT

CITY ATTORNEY

FINANCE

FROM: LISA BRINTON, DIRECTOR
CHRISTOPHER A. CALLIHAN, CITY ATTORNEY

SELINA ANDREWS, DIRECTOR

THROUGH: ORLANDO REYES, ASSISTANT DIRECTOR
BY: VINCENT MONTGOMERY, PLANNING MANAGER

LAURA GAMA, ADMINISTRATIVE ANALYST

AQUONTIS GARLINGTON, ADMINISTRATIVE AIDE

TITLE: ESTABLISHMENT OF 2026 RESIDENTAL RENTAL

REGISTRATION AND RENT STABILIZATION PROGRAM

FEES, REVENUE AND EXPENDITURES

RECOMMENDED MOTION:

A motion to approve Resolutions:

1. Amending Rental Registry Fees established by Resolution No. 23170 (N.C.S.) to be $29.00 effective January 1, 2026, and integrating the new fee amount into the City’s Schedule of Fees and Charges for City Services;

2. Amending Rent Program Fees established by Resolution No. 23169 (N.C.S.) to be $112.00 effective January 1, 2026, and integrating the new fee amount into the City’s Schedule of Fees and Charges; and

3. Establishing the appropriation for 2026 Rental Registration and Rent Stabilization Program revenue and expenditures in the amount of one million one hundred twenty-eight thousand eight hundred fifty-one dollars ($1,128,851).

Page | 2
EXECUTIVE SUMMARY:

The C ommunity Development Department began implementation of the Residential Rental Registration and Rent Stabilization Program (Program) on January 1, 2025. To continue Program implementation in 2026, City Council action is needed to establish updated Program registration fees to align with P rogram budget expenditures. This report outlines 2026 Program staffing , budget and Rental Registry and Rent Program Fee adjustments.

DISCUSSION:

2026 Program Staffing and Budget
The Program will continue to be staffed with a Planning Manager (partial), one Community Development Analyst, one limited term Administrative Analyst, and one limited term Administrative Aide to support the administration, enforcement, and public-facing components of the ordinances. Program staff are responsible for assisting landlords and tenants with registration, responding to inquiries, monitoring compliance, processing petitions and fair rate of return requests and conducting outreach and education efforts as discussed in more detail below.

0.20 FTE Planning Manager

0.75 FTE Community Development Analyst (Limited Term)

1.00 FTE Admin Analyst (Limited Term)

1.00 FTE Admin Aide (Limited Term)

2.95 FTE

The proposed 2026 calendar year Program expenses of $1,128,851 is provided in Table 1 below.

Program expenses include staffing costs, software platform renewal , a hearing officer , and education and tenant supportive services. In accordance with policy published in the FY 2025-26 Operating Bud get, indirect/overhead costs are fifteen percent (15%). Following best practices, twenty-five percent (25%) of program cost has also been incorporated as a reserve to cover Program expenses should participation be lower than projected. The reserve allocation is based on the standard percentage the City applies to all enterprise funds.

Table 1 – 2026 Program Calendar Year Budget
Salaries & Benefits $351,252
Software $131,000
Supportive Services $300,515
Indirect Costs / Overhead $117,415
Subtotal $900,182
25% Reserve $228,669
Total Program Budget $1,128,851
Page | 3
Program Fees
As discussed in the 2025 Program Update (ID #25-318), the amount of Rental Registry and Rent Program Fees resulted in higher revenue than needed to operate the Program. As the Program is to be cost neutral, and to avoid future shortage or over collection of fees, staff worked with Economic & Planning Systems (EPS) to revisit and update Table 4-13 of their Fee Study, which was the basis for the establishment of 2025 F ees. EPS updated Table 4-13 of the Fee Study with the proposed 2026 budget of $1,128,851 and adjusted formulas to assume a forty-five percent (45%) compliance ( participation) rate. Table 4-13 of the Updated Fee Study, provided as an attachment to this staff report, re duces both Rental Registry and Rent Program Fees by approximately thirty-five (35%) percent. The recommended Rental Registry Fee per unit is $29.00 and $112.00 per unit for Rent Program Fees.

CEQA CONSIDERATION:

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

In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No.

STRATEGIC PLAN INITIATIVE:

The Residential Rental Registration and Rent Stabilization Program does not directly align with objectives under the City Council’s 2025-2028 Strategic Plan Goal of Housing. Examination of a Rent Stabilization Program was an identified objective under the 2022 -2025 Goal of promoting Housing/Affordable Housing.

DEPARTMENTAL COORDINATION:

The Program is administered by the City’s Community Development Department in coordination with the City Attorney and Finance Department. These three departments worked collaboratively to prepare this report.

FISCAL AND SUSTAINABILITY IMPACT:

There is no direct impact to the General Fund as Program cost is intended to be neutral. Table 4- 13 of the Updated Fee Study illustrates that a Rental Registry Fee per unit of $29.00 and Rent Page | 4
Program Fees of $112.00 will cover Program expenses at a 45% compliance rate, including a 25% reserve of $228,669. Should 2026 Program participation be higher than projected, excess revenues collected over Program expenses would be returned to paid registrants following the same methodology as used for Program Year 2025. Appropriation of the proposed 2026 Program revenues and expenses totaling $1,128,851 including salaries and benefit, software, support services, administrative indirect and overhead costs, and reserves is shown below.

Fund

General Ledger Number
(Operating/CIP)
General Ledger Account
Name

Amount Requested
2530 30.3220-56.3530 (revenue) Charges for Rental Registry Fees
$114,985
2530 30.3220-56.3540 (revenue) Charges for Rent Program Fees
$989,408
2530 TBD Estimated Late Fees $24,458
2530 30.3220-various Various $1,083,036
2530 30.3240-various Education and Outreach $45,815

ATTACHMENTS:

Resolution establishing 2026 Rental Registry Fees
Resolution establishing Rent Program Fees
Resolution appropriating 2026 Program revenue and expenditures Updated Fee Study Table 4-13
Updated Fee Study
Page | 1

RESOLUTION NO. (N.C.S.)

A RESOLUTION AMENDING RENTAL REGISTRY FEES ESTABLISHED BY RESOLUTION NO. 23170 (N.C.S.) AND INTEGRATED INTO THE CITY’S SCHEDULE OF FEES AND CHARGES FOR CITY SERVICES BY RESOLUTION NO. 23239 (N.C.S.)

WHEREAS, on April 4, 2023, the City Council adopted Ordinance No. 2663 establishing a Residential Rental Registration Program, which Ordinance is codified at Article I of Chapter 17 of the Salinas Municipal Code; and

WHEREAS, on September 24, 2024, the City Council adopted Ordinance No. 2681 establishing the Rent Stabilization Program to protect tenants from rapidly increasing rental costs, which Ordinance is codified at Article IIA of Chapter 17 of the Salinas Municipal Code; and

WHEREAS, on November 19, 2024, the City Council app roved Resolution No. 23170 (N.C.S.) amended Rental Registry Fees established under Resolution No. 22622 (N.C.S) to $45.00 per Rental Unit in the City of Salinas subject to Ordinance No. 2663; and WHEREAS, also on November 19, 2024 , the City Council approved Resolution No. 23169 (N.C.S.) establishing the Rent Program Fee pursuant to Salinas Municipal Code section 17-02.13 in the amount of $170.00 on every Controlled Rental Unit owned and offered for rent in the City of Salinas subject to Ordinance No. 2681; and
WHEREAS, also on November 19, 2024, the City Council approved Resolution No. 23171 (N.C.S.) establishing the 2025 Residential Rental Registration and Rent Stabilization Program Revenue and Expense Budget of $655,250 under Fund 2530; and WHEREAS, the Community Development Department began implementation of the Rental Registration and Rent Stabilization Program (Program) on January 1, 2025; and WHEREAS, on May 6, 2025, Program fees established under Resolutions Nos. 23169 and 23170 (N.C.S.) were incorporated into the City’s Schedule of Fees and Charges by Resolution No. 23239 (N.C.S.); and
WHEREAS, 2025 Program Fee revenue exceed Program expenses due to higher-than-expected participation and lower-than-projected operational costs; and WHEREAS, the Program is to be cost neutral, and to avoid future shortage or over collection of fees, staff worked with Economic & Planning Systems (EPS) to revisit and update Table 4 -13 of their Fee Study, which was the basis for the establishment of 2025 Program Fees; and WHEREAS, the 2026 Program budget estimates total Program expenses to be $1,128,851 for the 2026 calendar year, including salaries and benefits, software, supportive services, administrative Page | 2

indirect and overhead costs, and a 25% reserve; and
WHEREAS, EPS updated Table 4 -13 of the Fee Study with the proposed 2026 budget of $1,128,851 and adjusted formulas to assume a forty-five percent (45%) compliance (participation) rate. The Updated Fee Study is attached hereto and incorporated herein by this reference; and WHEREAS, the updated Table 4-13 reduces both Rental Registry and Rent Program Fees by approximately thirty-five (35%) percent; and
WHEREAS, the recommended Rental Registry fee per unit is $29.00 and $1 12.00 per unit for Rent Program Fees; and
WHEREAS, the City Council desires to amend the Rent al Registry Fee to ensure that fees collected do not exceed the reasonable cost of providing services necessary to administer the Rental Registration Ordinance, pursuant to Article XI, §7 of the California Constitution.

WHEREAS, the City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment.

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

1. The Rent al Re gistry Fee (as referenced in Salinas Municipal Code section 17-01.04) established by Resolution No. 231 70 (N.C.S.) and integrated into the City’s Schedule of Fees and Charges for City Services by Resolution No. 23239 is hereby amended as set forth in this Resolution.

2. Effective January 1, 2026, the Rental Registry Fee shall be set at $29.00 per Rental Unit in the City of Salinas subject to Ordinance No. 2663 and is hereby integrated into the City's Schedule of Fees and Charges for City Services by this Resolution, as required by Chapter 11B of the Salinas Municipal Code.

3. The Rent Registry Fee shall be billed annually by the City.

4. Revenues collected from the Rental Registry Program shall be appropriated to Fund 2530.This Resolution shall take effect immediately upon its approval.

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

AYES:

NOES:

ABSENT:

ABSTAIN:

Page | 3

APPROVED:

_______________________
Dennis Donohue, Mayor

ATTEST:

_________________________
Patricia M. Barajas, City Clerk
Page | 1

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

A RESOLUTION AMENDING RENT PROGRAM FEES ESTABLISHED BY
RESOLUTION NO. 23169 (N.C.S.) AND INTEGRATED INTO THE CITY’S SCHEDULE OF FEES AND CHARGES FOR CITY SERVICES BY RESOLUTION NO. 23239 (N.C.S.)

WHEREAS, on April 4, 2023, the City Council adopted Ordinance No. 2663 establishing a Residential Rental Registration Program, which Ordinance is codified at Article I of Chapter 17 of the Salinas Municipal Code; and

WHEREAS, on September 24, 2024, the City Council adopted Ordinance No. 2681 establishing the Rent Stabilization Program to protect tenants from rapidly increasing rental costs , which Ordinance is codified at Article IIA of Chapter 17 of the Salinas Municipal Code; and

WHEREAS, on November 19, 2024, the City Council approved Resolution No. 23170 (N.C.S.) amending Rental Registry Fees established under Resolution No. 22622 (N.C.S) to $45.00 per Rental Unit in the City of Salinas subject to Ordinance No. 2663; and WHEREAS, also on November 19, 2024 , t he City Council approved Resolution No. 23169 (N.C.S.) establishing the Rent Program Fee pursuant to Salinas Municipal Code section 17-02.13 in the amount of $170.00 on every Controlled Rental Unit owned and offered for rent in the city of Salinas subject to Ordinance No. 2681; and
WHEREAS, also on November 19, 2024, the City Council approved Resolution No. 23171 (N.C.S.) establishing the 2025 Residential Rental Registration and Rent Stabilization Program Revenue and Expense Budget of $655,250 under Fund 2530; and WHEREAS, the Community Development Department began implementation of the Rental Registration and Rent Stabilization Program (Program) on January 1, 2025; and WHEREAS, on May 6, 2025, Program fees established under Resolution Nos. 23169 and 23170 (N.C.S.) were incorporated into the City’s Schedule of Fees and Charges by Resolution No. 23239 (N.C.S.); and
WHEREAS, in 2025 Program Fee revenue exceeded Program expenses due to higher-than- expected participation and lower-than-projected operational costs; and WHEREAS, the Program is to be cost neutral, and to avoid future shortage or over collection of fees, staff worked with Economic & Planning Systems (EPS) to revisit and update Table 4 -13 of their Fee Study, which was the basis for the establishment of 2025 Program Fees. The Fee Study is attached hereto and incorporated herein by this reference; and WHEREAS, the 2026 Program budget estimates total Program expenses to be $1,128,851 for the 2026 calendar year, including salaries and benefits, software, supportive services, administrative Page | 2

indirect and overhead costs, and a 25% reserve; and
WHEREAS, EPS updated Table 4 -13 of the Fee Study with the proposed 2026 budget of $1,128,851 and adjusted formulas to assume a forty-five percent (45%) compliance (participation) rate. The Updated Fee Study is attached hereto and incorporated herein by this reference; and WHEREAS, Table 4-13 of the Updated Fee Study, provided as Exhibit A, reduces both Rental Registry and Rent Program Fees by approximately thirty-five (35%) percent; and WHEREAS, the recommended Rental Registry fee per unit is $29.00 and $1 12.00 per unit for Rent Program Fees; and
WHEREAS, the City Council desires to amend the Rent Program Fee to ensure that fees collected do not exceed the reasonable cost of providing services necessary to administer the Rent Stabilization Ordinance, pursuant to Article XI, §7 of the California Constitution; and WHEREAS, the City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment.

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

1. The Rent Program Fee (as referenced in Salinas Municipal Code section 17-02.13) established by Resolution No. 23169 (N.C.S.) and integrated into the City’s Schedule of Fees and Charges for City Services by Resolution No. 23239 is hereby amended as set forth in this Resolution.

2. Effective January 1, 2026, the Rent Program Fee shall be set at $112.00 per Controlled Rental Unit subject to Ordinance No. 2681 and is hereby integrated into the City's Schedule of Fees and Charges for City Services by this Resolution, as required by Chapter 11B of the Salinas Municipal Code.

3. The Rent Program Fee shall be billed annually by the City.

4. Revenues collected from the Rent Stabilization Program shall be appropriated to Fund 2530.

5. This Resolution shall take effect immediately upon its approval.

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

AYES:

NOES:

ABSENT:

Page | 3

ABSTAIN:

APPROVED:

_______________________
Dennis Donohue, Mayor

ATTEST:

_________________________
Patricia M. Barajas, City Clerk
Page | 1

RESOLUTION NO. (N.C.S.)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SALINAS ESTABLISHING THE APPROPRIATION FOR 2026 RESIDENTIAL RENTAL

REGISTRATION AND RENT STABILIZATION PROGRAM REVENUE AND EXPENDITURES IN THE AMOUNT OF $1,128,851

WHEREAS, on April 4, 2023, the City Council adopted Ordinance No. 2663 establishing the Residential Rental Registration Program, which Ordinance is codified at Article I of Chapter 17 of the Salinas Municipal Code; and

WHEREAS, on September 24, 2024, the City Council adopted Ordinance No. 2681 establishing the Rent Stabilization Program to protect tenants from rapidly increasing rental costs , which Ordinance is codified at Article IIA of Chapter 17 of the Salinas Municipal Code; and

WHEREAS, on November 19, 2024, the City Council approved Resolution No. 23171 (N.C.S.) establishing the 2025 Residential Rental Registration and Rent Stabilization Program Revenue and Expense Budget of $655,250 under Fund 2530; and
WHEREAS, the Commu nity Development Department began implementation of the Rental Registration and Rent Stabilization Program (Program) on January 1, 2025; and WHEREAS, the establishment of a 2026 Program Revenue and Expense Budget is required to continue Program implementation; and
WHEREAS, on December 9, 2025, the City Council considered and approved Resolution No. __________(N.C.S.) amending Rent Program fees established under Resolution No. 23169 (N.C.S.) to be $112.00 imposed on every Controlled Rental Unit owned and offered for rent in the City of Salinas subject to Ordinance No. 2681; and

WHEREAS, also on December 9, 2025 , the Salinas City Council considered and adopted Resolution No. _________(N.C.S.) amending Rental Registry fees established under Resolution No. 23170 (N.C.S.) to be $29.00 imposed on every Unit owned and offered for rent in the City of Salinas subject to Ordinance No. 2663; and
WHEREAS, Resolutions Nos __________(N.C.S.) and __________(N.C.S.) also integrated amended fees into the City's Schedule of Fees and Charges for City as required by Chapter 11B of the Salinas Municipal Code; and
WHEREAS, the 2026 Program Budget estimates total program expenses of $1,128,851 including salaries and benefits, software, supportive services, administrative indirect and overhead costs and a 25% reserve and
WHEREAS, the City of Salinas has determined that the proposed action is not a project as defined Page | 2

by the California Environment al Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SALINAS THAT:

1. Establish an appropriation for revenues collected from Residential Rental Registration Program (Fund 2530) in the amount of one million one hundred twenty eight thousand eight hundred fifty one dollars ($1,128,851).

2. Establish an appropriation for expenditures of the Residential Rental Registration Program (Fund 2530) in the amount of one million one hundred twenty-eight thousand eight hundred fifty one dollars ($1,128,851).

3. Effective January 1, 2026, the Rental Registry Fee shall be set at $29.00 per Rental Unit in the City of Salinas subject to Ordinance No. 2663 and is hereby integrated into the City's Schedule of Fees and Charges for City Services by this Resolution, as required by Chapter 11B of the Salinas Municipal Code. (Resolution No. __________(N.C.S.)).

4. Effective January 1, 2026, the Rent Program Fee shall be set at $ 112.00 per Controlled Rental Unit subject to Ordinance No. 2681 and is hereby integrated into the City's Schedule of Fees and Charges for City Services by this Resolution, as required by Chapter 11B of the Salinas Municipal Code. (Resolution No. __________(N.C.S.))

5. The Community Development Department, in coordination with the City Attorney and Finance Department, is authorized to administer the program, enforce compliance, and implement outreach and education efforts.

6. This Resolution shall take effect immediately upon adoption.

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

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

_______________________
Dennis Donohue, Mayor

Page | 3

ATTEST:

_________________________
Patricia M. Barajas, City Clerk

UPDATED DRAFT
Table 4-13
City of Salinas
Rent Stabilization Analysis
Estimated Fee Based on Percentage of Compliance
Item 45% Amount
Residential Units
Fully Covered Units (Qualify for Rent Stabilization) 8,330 Units 8,834 - - 8,834 Partially Covered Units (Qualify for Just Cause Protections) 14,464 Units 3,965 - - 3,965 12,799 - - 12,799
Fee Amount based on Level of Staff and Third Party
Services + Software
Rent Stabilization Program + Rent Program $170 per unit/per year $1,501,780 $112 34.1% $989,408 Rent Program $45 per unit/per year $178,425 $29 35.6% $114,985 Late Fees (2% of Revenue) - 2% $37,210 - - $24,458
Adjustments and Refunds - ($2,068) - - $0
Total Annual Revenue - $1,715,347 - - $1,128,851
Estimated Costs [2]
Staffing Costs - - - - $351,252
Software & Systems Supporters - - - - $131,000
Tenant/Landlord Services and Resources - - - - $300,515 Indirect Costs / Overhead - - - - $117,415
Subtotal - $720,750 - - $900,182
Loan Repayment to General Fund - $205,203 - - $0
Grant Funding - ($122,321) - - $0
Total Annual Estimated Costs - $803,632 - - $900,182
Program Surplus/Deficit - $911,715 - - $228,669
Contingency % - NA - - 25.4%
Source: City of Salinas; EPS.
[1] Actual compliance percentage, revenues, and costs for 2025 per the City of Salinas. [2] Estimated costs for 2026 per the City of Salinas.

Assumption
2025 Actual
Compliance,
Revenues, and
Costs [1]
2026 Estimated Compliance
45%
Original Updated
Fee
Proportional
Reduction
Prepared by EPS 12/1/2025 C:\Users\orlandor\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\THF8BDFI\242128_m2_Salinas_RR_RSO_Fee_12-1-25 Final Report
Proposed Rent Stabilization
Ordinance Analysis
Prepa
red for:

City of Salinas
Prepa
red by:

Economic & Planning Systems, Inc. (EPS)
November 2024 Updated 2025
EPS
#242050

Table of Contents
Introduction and Summary of Findings .............................................. 1 Introduction ....................................................................................... 1 Study Overview .................................................................................. 2 Background ....................................................................................... 3 California Rent Stabilization .................................................................. 4 Rent Stabilization Concepts and Discussion ............................................. 5 Key Findings and Considerations ........................................................... 7 Overall Conclusions ........................................................................... 12 Recommendations ............................................................................ 13 Regulatory Context ....................................................................... 16 California Rent Stabilization ................................................................ 16 Summary of Salinas’ Proposed Ordinance ............................................. 17 Additional Renter Protections .............................................................. 18 Literature Review and Case Study ................................................... 20 Impacts on Renter Displacement ......................................................... 21 Impacts on Rental Supply .................................................................. 22 Impacts on Economic Inequality .......................................................... 24 Impacts on Property Values ................................................................ 25 Impacts on Building Quality ................................................................ 26 Other Potential Impacts ..................................................................... 27 Case-Study Research ........................................................................ 28 Literature Review and Case-Study Conclusions ...................................... 32

Economic and Fiscal Impacts of Rent Stabilization ............................ 34 Housing Supply ................................................................................ 34 Affordable Housing Supply ................................................................. 36 Residential Property Tax .................................................................... 36 Rent Pressures and Displacement ........................................................ 39 Renter Household Socioeconomics ....................................................... 42 Economic Impact on Property Owner ................................................... 45 Program Implementation Costs to the City ........................................... 54 Conclusions and Recommendations ................................................. 60 Conclusions ...................................................................................... 60 Recommendations ............................................................................ 61

Appendices
Appendix A: Demographic and Socioeconomic Analysis Support Tables Appendix B: Financial Analysis Support Tables

List of Tables
Table 1-1. California Cities with Rent Stabilization ........................................... 6 Table 3-1. Comparison of Rent Stabilization Ordinance (3 pages) .................... 29 Table 4-1. Summary of Housing Inventory as it Relates to Rent Stabilization: City of Salinas ....................................................................... 35 Table 4-2. Affordable Housing Inventory: City of Salinas ................................ 36 Table 4-3. Real Estate Assessed Values: City of Salinas .................................. 38 Table 4-4. Rent-Burdened Households: City of Salinas ................................... 41 Table 4-5. Renter Movement by City............................................................ 42 Table 4-6. City Salinas Median Income, Average Household Size, and Income per Capita by Household Tenure: City of Salinas ................................ 42 Table 4-7. Householder Race: City of Salinas ................................................ 43 Table 4-8. Householder Age: City of Salinas ................................................. 44 Table 4-9. Median Renter Household Income compared to
Average Monthly Rent ............................................................................... 45 Table 4-10. IRR and Property Value Growth Sensitivity Analysis ...................... 51 Table 4-11. Estimate Range of Required Staff ............................................... 55 Table 4-12. Estimated Staffing and Annual Costs Rental Registry and Rent Stabilization Program ......................................................................... 56 Table 4-13. Rental Registry and Rent Stabilization Program Estimated Annual Cost Variations: Minimum Number of Employees ................................ 58 Table 4-14. Current Rental Registry Fee Comparison ..................................... 59

List of Figures
Figure 1. CPI Comparison .......................................................................... 14 Figure 2. Housing Inventory as it Relates to Rent Stabilization:

City of Salinas .......................................................................................... 35 Figure 3. Breakdown of the City of Salinas Assessed Value by Land Use ............ 38 Figure 4. Year-Over-Year Percentage Change in Median Renter-Occupied Household Income versus Average MFR Rent for Apartments Built Before 1995: City of Salinas: 2012-2022/2024 ............................................. 40 Figure 5. Rental Revenue Differential: Market Rate vs
Stabilization Alternatives ........................................................................... 47 Figure 6. Effective Rent Roll Growth with Vacancy Decontrol by Rent Stabilization Rate .............................................................................. 48 Figure 7. Inflation and Corresponding Allowable Rental Increases .................... 48 Figure 8. Internal Rate of Return Differential: Market-Rate Base Case vs.

Alternative Rent Stabilization Scenarios ....................................................... 50 Figure 9. Internal Rate of Return Differential: Impact of 5 Percent Annual Operating Expense Growth ......................................................................... 52 Figure 10. Peer Cities Hypothetical IRR Comparison ....................................... 53

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Introduction and Summary of Findings
Introduction
At the request of the City of Salinas’ (City) City Council (Council), Economic & Planning Systems, Inc. (EPS) was retained to provide due diligence by analyzing the potential economic effects of establishing a rent stabilization policy (Study).1 Please note that rent stabilization ONLY applies to residential land uses with the following characteristics:
• Multifamily rental dwelling units (including duplexes and triplexes, unless one unit is occupied by the property owner).
• Built before February 1, 1995.
• Remodeled residential units converted from space long dedicated to residential.2
The following residential land uses are EXEMPT:
• Single-family dwelling units.
• Single-family rentals.
• Condominium units.
• Condominium rentals.
• Multifamily dwelling units built after February 1, 1995. • Newly constructed dwelling units.3

1 The City Attorney retained the services of EPS to serve as an outside expert by conducting a Consultant’s study of the proposed rent stabilization ordinance intended to inform and support the City Attorney’s legal evaluation. As such, this Study is subject to evidentiary protections under the attorney work product doctrine or attorney-client privilege, and all written communications should be appropriately marked to preserve those protections. 2 California Legislative Information Civil Code—CIV DIVISION 3. OBLIGATIONS [1427 - 3273.69] (Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14.) PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.69] (Part 4 enacted 1872.) TITLE 5.

HIRING [1925 - 1997.270] (Title 5 enacted 1872.) CHAPTER 2.7. Residential Rent Control [1954.50 - 1954.535] (Title 5 added by Stats. 1995, Ch. 331, Sec. 1.) https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=CIV&division=3.&title =5.&part=4.&chapter=2.7.&article (accessed May 20 24).
3 Ibid.

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NOTE: Rent stabilization provides landlords with the ability to increase rent by a fixed percentage year over year. This differs from rent control, which is defined as when a municipality locks in rental rates at a specific amount. Please note that while the distinction between these methods of regulating rent is important, the terms may sometimes be used interchangeably within the literature review and other parts of this analysis.

This Study was prepared to answer the following key questions related to a potential rent stabilization ordinance on multifamily residential rental units in the City:
• What socioeconomic and real estate trends led City officials to consider implementing a rent stabilization policy?
• How can the experiences of cities with existing rent stabilization policies inform the elements of the proposed policy requirements in Salinas? • What are the potential fiscal implications of a proposed rent stabilization ordinance on the City’s General Fund?
• What are the estimated impacts of different rent stabilization ordinance scenarios on housing supply in the City?
It is important to note that local rental markets are complex and influenced by a variety of factors that are external to the proposed ordinance, including regional growth trends, federal and State of California (State) policies and regulations, and business cycle considerations, among others. Thus, the identified economic and fiscal impacts of the proposed ordinance are informed by available evidence and are not intended to be precise predictions but are to support discussion of potential policies and recommendations.

Study Overview
This Study includes various research methods to help examine the economic and fiscal effects of rent stabilization, including a literature review on rent stabilization, case studies of rent stabilization regulations implemented in jurisdictions in California, and a technical socioeconomic and financial analysis.

The technical analysis component of this Study comprises the following key analytic elements and addresses how they relate to and could be affected by rent stabilization:

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• Demographic and Socioeconomic Profile. Identifies trends in population and households, age, race & ethnicity, and household income. • Residential Market Profile. Examines the housing inventory and residential market trends in the City.
• Economic and Fiscal Impacts. Estimates the economic impacts of rent stabilization on housing supply and pricing, the City’s General Fund, and on landlord returns.

The purpose of this evaluation is to develop an understanding of the dynamics of socioeconomic and residential market trends in Salinas to examine the economic and fiscal impacts of rent stabilization and address the key questions to help the City develop a rent stabilization ordinance that considers and balances the economic implications for both the tenants and building owners.

Supporting data tables underlying the findings and figures presented herein are included in appendices at the end of this Study.

Sources
This Study relies on publicly available data sources (e.g., 2012 and 2022 U.S. Census American Community Survey, California Department of Finance, Housing and Urban Development, RedFin, Zillow, Nolo) and subscription-based data (e.g., CoStar, ParcelQuest) to document and evaluate trends in the City, the State, and other jurisdictions.

Background
As the county seat, the City is both a center of agricultural production and an affordable residential center for service economy employees serving the Monterey Peninsula. The City has been making gains in its downtown, which has become a compelling and livable district. Recent years have shown Salinas’ economic base growing at a modest pace, with agriculture making up the largest portion of economic activity.

Salinas’ labor force is young, with a large proportion of workers lacking a high school or college education. Salinas also has a shortage of both agricultural production workers, as well as health care and educational workers.

The labor force also has a sizable number of professionals and construction workers who commute to jobs outside of the City and Monterey County. The role of Salinas as a bedroom community for those workers has put upward pressure on housing prices, and the regional shortage of agricultural workers, as well as the tourist-serving hospitality workers, is an outcome of that trend.

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Salinas has a rare if not unfortunate status as an area of lower wage labor subject to very expensive land and development costs (similar to the greater Bay Area).

With very little new market supply added despite several major Specific Plans on the books, these forces have combined to create a high cost of living in the City. Communities to the south of Salinas on U.S. Highway 101 are actively seeking to compete for this labor force as part of their own economic development ambitions. While every effort is being made to diversify and train the local labor force and enable citizens to gain additional skills and command higher wages, these efforts take time. In the interim, the rising costs of living, including the cost of housing, are important to understand, and efforts to help must center on stabilizing housing costs through various policies, including but not limited to rent stabilization.

California Rent Stabilization
The California Tenant Protection Act established a statewide maximum allowable rent increase and just-cause eviction protections. The statewide policy caps rent increases at the lesser of 5 percent plus the increase in the regional consumer price index (CPI) or 10 percent of the lowest rent charged over the 12 months before the increase.
4 Cities and counties may also enact their own rent stabilization with a lower rent cap than the statewide provision. However, any local ordinance is limited by the Costa-Hawkins Rental Act, which exempts single-family homes, condominiums, and all housing built after 1995 from rent stabilization (but not just-cause eviction). State law also dictates that all units covered by rent stabilization are subject to vacancy decontrol, which allows landlords to establish market-rate rents for new tenants.
5 There is a statewide ballot initiative set for the November 2024 ballot that would repeal Costa-Hawkins.6 If the initiative passes, any local ordinance not explicitly written to exempt single-family homes or provide vacancy decontrol will take effect. Therefore, if Costa-Hawkins is repealed, the City’s proposed rent stabilization ordinance, if approved, would apply to all rental housing, including single-family units, and rents would not reset to market rate for new tenants if these elements are not specified in the ordinance.

4 Rent Control Is Here: California’s Tenant Protection Act of 2019 | Nolo 5 Costa-Hawkins Act • California Apartment Association (caanet.org) 6 California Prohibit State Limitations on Local Rent Control Initiative (2024) - Ballotpedia Proposed Rent Stabilization Ordinance Analysis
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Various studies on rent stabilization in California suggest that approximately 30 cities in the State have some form of rent stabilization program, or about 7 percent of the total cities (accounting for 22 percent of the State’s population).7 As illustrated in Table 1-1 most of these cities tie rent caps to a percentage of the CPI. A smaller number of cities cap rent at an annual percentage increase, ranging from 2 percent to 10 percent, regardless of the CPI.

Rent Stabilization Concepts and
Discussion
Rent stabilization and control are a controversial concept, subject to divisive opinions and concerns.

These are some of the common concerns with this regulatory policy:
• Reduced rental unit supply.
• Reduced residential mobility.
• Reduced property value.
• Decreased revenue leading to property disinvestment.
• Inflated rent as an effect of vacancy decontrol.

Conversely, these are some of the positive expectations from rent stabilization:
• Housing stability:
‒ Reduced worker turnover.
‒ Improved educational outcomes.
‒ Reduced demand for social services.
• Increased discretionary income potentially to help boost the local economy. • Protecting communities of color from historical housing cost burdens. • Increase in income equality.

Many of the concerns can be alleviated through education of the proposed rent stabilization policy. For example, making sure the community understands which residential units qualify for rent stabilization and specifically clarifying it does not affect new development, as discussed in Chapter 2, and refuting some common misconceptions, as discussed in Chapter 3.

7 California Rent Control Law | Nolo
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Table 1-1. California Cities with Rent Stabilization

City City
Bell Gardens 50% Gardena 5%
Antioch 60% Hayward 5%
Concord 60% Larkspur 7%
Oakland 60% Mountain View 2% - 5%
Richmond 60% Oxnard 4%
San Francisco 60% Sacramento 10%
Berkeley 65% San Jose 5%
Alameda 70% Average 6%
Los Gatos 70%
Fairfax 75%
Palm Springs 75%
Pasadena 75%
Santa Monica 75%
West Hollywood 75%
East Palo Alto 80%
Santa Ana 80%
Baldwin Park 100%
Beverly Hills 100%
Cudahy 100%
Culver City 100%
Inglewood 100%
Los Angeles 100%
Pomona 100%
Average 78%
Source: Nolo; EPS.

Allowable Annual
Rent Increase
(% of CPI)
Allowable Annual
Rent Increase
Flat %
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Key Findings and Considerations
Key Question 1: What socioeconomic and real estate trends led City officials to consider implementing a rent stabilization policy? For decades, California has faced a housing crisis related to its significant unhoused population and housing affordability related to rising housing costs and lack of supply. For renters, especially those living in poverty, high rental rates have translated into large proportions of their income allocated to housing costs, leaving little remaining for basic living expenses, let alone bolstering savings accounts to build wealth.8 Disparities in cost burdens persist among renters, particularly affecting households from a diverse racial background. These disparities are attributed to long-standing discrimination in housing,9 employment, and education.10 Black, Hispanic, and multiracial households face higher rates of cost burdens compared to White renters by 5 to 10 percent.11 Among the renters experiencing housing hardships, 4 in 10 renter households are Black and Latinx.12 This housing crisis is exacerbated for people of color, who often face additional barriers such as lower wages and fewer housing options in desirable neighborhoods. These communities are more likely to experience housing instability and are at greater risk of eviction. The socioeconomic factors and real estate trends discussed below have prompted the City Council to consider a rent stabilization policy in the City to help protect the vulnerable renter communities by helping to alleviate the pressures of increasingly high rents.

8 Kimberlin, Sara and Esi Hutchful, 2019. New Census Figures Show More Than 1 in 6 Californians Struggle to Afford Basic Necessities. California Budget and Policy Center. [online] https://calbudgetcenter.org/resources/number-of-ca lifornians-living-in-poverty-has-been- declining-but-more-than-1-in-6-residents-still-struggle-to-afford-basic- necessities/#:~:text=Approximately%207.1%20million%20Californians%20lived,Supplemental% 20Poverty%20Measure%20(SPM) [Accessed January 2021].
9 CBPC, Who is Experiencing Housing Hardship in California? May 2022; 5. 10 JCHS of Harvard University, America’s Rental Housing, 2024; 34-36. 11 Ibid.
12 CBPC, Who is Experiencing Housing Hardship in California? May 2022.

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These are characteristics of renter-occupied households in Salinas:
• Overcrowding in renter-occupied households has increased by more than 24 percent over the last decade, compared to only 6 percent statewide.13 • About 53 percent of City renter-occupied households have 4 or more occupants, compared to 27 percent statewide.
• Mirroring a trend negatively affecting all of California, more than half of renter-occupied households in the City are considered rent-burdened and 26 percent are considered severely cost-burdened:
‒ Median renter household income: $64,509/year.
‒ 30 percent of median income: $1,612/month.
‒ Median multifamily residential rent for units built before 1995:
$1,994/month.
• Approximately 18 percent of families that are renters fall below the poverty level, compared to 6 percent of owner-occupied families in Salinas, and statewide, 16 percent of renters fall below the poverty level, compared to 4 percent of owner-occupied.14
• More than half (53 percent) of the City’s households are renter occupied, in comparison to 44 percent statewide.
• Latinx population comprises 81 percent of the renter-occupied units in Salinas, compared to 30 percent countywide and 37 percent statewide. • About 57 percent of renter-occupied households comprise householders ages 44 or younger, compared to 37 percent countywide and 53 percent statewide.

The multifamily rental rate increase of 86 percent over the past decade greatly exceeds the increase in renter-household incomes, which only increased by a total of 33 percent (in 2022 dollars) over the same period.15

13 An overcrowded household is defined by the U.S. Census as having 1 or more persons per room (excluding bathrooms and kitchens).
14 The US Department of Housing and Urban Development defines a household spending more than 30 percent of their income on housing as “rent burdened.” Households spending more than 50 percent of their income on housing are considered “severely rent burdened.” 15 This is based on the difference between 2012 and 2024 for multifamily rental units built before 1995.

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In addition, the housing market in Salinas has become much more expensive.

Home prices have increased 203 percent since 2012 (2023 average median sales price is $675,000 for for-sale units), and rents in multifamily units built before 1995 have increased by 86 percent since 2012 (2023 average asking rent was about $1,980 for all unit sizes).

The housing market is considered tight, with little room for movement.

Overall low vacancy of about 3 percent, compared to Monterey County’s 8 percent average, indicates the need for increased housing supply.

The City’s current overall vacancy rate of 3 percent falls below the 5 percent threshold that many housing experts believe to be an ideal vacancy rate.16 Higher vacancy rates provide prospective buyers and renters with more options when searching for homes, helping to stabilize prices. Below this 5 percent rate, those looking for housing have fewer options, allowing landlords or sellers to charge higher prices. Research consistently has found that a vacancy rate below this 5 percent threshold leads to increasing rents and sales prices.

The undersupply of housing most prominently affects underserved populations— including students, teachers, young families, low-income families and individuals, seniors, people with disabilities, and the unhoused population—indicating the need for focused strategies to increase access to a variety of housing types at various levels of affordability.

Key Question 2: How can the experiences of cities with existing rent stabilization policies inform the elements of the proposed policy requirements in Salinas?
A survey of rent stabilization ordinances in comparable jurisdictions was completed to examine established policy structures, as well as program fee amounts. The full survey can be found in Chapter 3 Table 3-1.

The rent-stabilized jurisdictions analyzed in the case study implemented varying levels of rent increase percentages, as well as different fee amounts. One of the key takeaways is the emphasis on the importance of educating the community, property owners, and developers on the types of units subject to rent stabilization, as well as the elements within the ordinance that can help both renters and landlords.

In addition, it is important to acknowledge that rent stabilization does not serve as a single “silver bullet” solution to such a pervasive problem. For it to alleviate some of the housing pressure, it must be combined with other policies that protect renters and encourage additional supply such as providing incentives

16 Phillips, Shane. 2020. Does the Los Angeles Region Have Too Many Vacant Homes? UCLA Lewis Center for Regional Policy Studies Working Paper Series. https://escholarship.org/uc/item/87r4543q [Accessed October 2021].

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to support the development of missing housing types in the City, encouraging infill development, streamlining the permitting process, creating supportive housing-related programs for underserved populations, etc.

Key Question 3: What are the potential fiscal implications of a proposed rent stabilization ordinance on the City’s General Fund? Property Tax
There may be positive fiscal impacts on property taxes and property transfer taxes if rental units are sold in response to a rent stabilization ordinance.

However, these fiscal impacts will be minor under current conditions as the ordinance only applies to multifamily units. The building would either be sold and continued to be occupied as rental units, or the property owner would have to go through the detailed process of converting to condominiums, which could then reduce the rental supply.

There is also the potential that limiting rent increases could reduce the assessed value of a rent-stabilized property. However, because of the impact of Proposition 13 on assessed values, only properties that have been sold would be eligible for a reassessment in their taxable value. In these circumstances, some new property owners ultimately may file assessment appeals if the values of their properties do not keep pace with inflation because the real rental revenue is declining over time. The impact of this effect on property taxes will depend on the portion of multifamily rental housing that was recently transacted. In the last 5 years, only 5.5 percent of the City’s rental inventory that would qualify for the ordinance was sold.

In addition to property tax payments, any change in property values would impact the City’s property tax in-lieu of vehicle license fee revenue received from the State. Therefore, if the proposed ordinance were to result in a decrease (or increase) in assessed values, the City would receive lower (or higher) revenue from the State.

Program Costs to the City’s General Fund
Salinas will incur both one-time and ongoing costs to implement and administer a Rent Stabilization Program—costs that potentially could be covered through a per-unit fee program specified in the ordinance. Based on discussions with rent stabilization program staff in other jurisdictions, Salinas would likely need 1.1 to

11.4 full-time equivalent employees (FTEs) to manage the proposed ordinance (excluding the Rental Registry FTEs). Preliminary EPS estimates suggest ongoing program administration costs ranging from about $927,000 to $2.6 million per year, as detailed in Chapter 4 Table 4-12.

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A combined annual per-unit fee for the Rental Registry and Rent Stabilization programs should be designed to recover the costs of the fully burdened costs of staff. An illustrative example using the estimated annual costs of $927,000 reflects a $45 fee per unit for partially covered units and a $170 fee per unit for fully covered units. The actual fees will depend on the level of staffing and will decrease over time if not escalated to keep pace with inflation. This fee does not include the initial costs to implement the program, and it provides an estimated cost of hiring third-party sources that may help with services such as legal counsel, tenant relocation assistance, and renter helpline. Actual costs of third- party services will depend on what elements are included from each service type.

Key Question 4: What are the estimated impacts of different rent stabilization ordinance scenarios on housing supply in the City? Under current State law, the impact of the proposed ordinance on City finances and economic trajectory is likely to be relatively modest.

Because of the statewide exemptions for single-family homes and multifamily units built after 1995, the rent stabilization provisions of the ordinance would only impact about 19 percent of the City's total housing stock. The most significant economic impacts are likely to be distributional, with existing renters experiencing direct financial benefits at the expense of property owners. The rent and eviction protections also may limit displacement among lower income communities who tend to disproportionately occupy rental housing.

Vacancy decontrol, which allows the rent for vacated units to be brought up to market rate, helps stabilize the potential financial effects for property owners, reflecting only a slightly decreased Internal Rate of Return (IRR) depending on the rent cap. A financial sensitivity analysis shows that a prototypical rent-stabilized building would appreciate at a slower rate compared to a market-rate building not subject to rent stabilization. In addition, rent-stabilized buildings are considered low-risk investments, requiring a stable IRR from about 8 percent to 12 percent compared to new construction, which would need to range about 2 percentage points higher. See Chapter 4.

Operating expenses for multifamily buildings have been somewhat volatile in recent years, largely because of increases in utility costs and particularly insurance costs. Increases in operating costs impact the net operating income for owners of multifamily rental units that are unable to pass along the total increased cost to tenants. Correspondingly, the return on investment for landlords can be negatively impacted. At the most restrictive rent control rates, the rates of investor return can potentially dip close to levels that can be achieved with far less risk and effort through an investment account. Under such a scenario, there would be increased incentive for some landlords to exit the market. The inclusion of provisions for landlords to petition for rent increases Proposed Rent Stabilization Ordinance Analysis
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to accommodate additional operating expenses is an important safety valve to prevent undue burden and potential loss of rental units.

Overall Conclusions
Rent regulations are increasingly prevalent in California. In cities like Salinas, where apartments account for about 36 percent of the housing stock, the policy could have a range of potential impacts. As discussed previously, current State law limits the impact of rent stabilization by exempting single-family units, condominiums, and properties built after February 1995 and allowing for vacancy decontrol (the ability to raise rent back to market rate after a tenant leaves).

For applicable units (19 percent of the City’s housing), the proposed ordinance is likely to stabilize rents and decrease displacement risk, which is an important equity concern in the City. Thus, existing City renters would be the direct beneficiaries of the ordinance, accruing long-term financial benefits and reduced risk of eviction. This benefit would come at a cost to existing Salinas landlords who could experience reduced rental income and limitations on removing unwanted tenants. However, the effects on income appear to be relatively modest, particularly as the ordinance has policies to help protect hardships by allowing a landlord to petition for rent increase beyond the allowed rent-stabilized increase to obtain a fair and reasonable return, as well as petition to pass through to the tenant specific capital improvements. Conversely, there is a policy that allows a tenant to petition for a rent reduction if they believe that the landlord has demanded, accepted, or retained any rent in excess of the rent permitted.

However, despite the clear and direct redistribution effects of the proposed ordinance, the broader economic implications are likely to be modest absent the repeal of Costa-Hawkins, which would expand the incidence of rent control beyond the above-referenced 19 percent of the City’s housing.

While 19 percent of the City’s housing is not immaterial, the renter protections included in the ordinance are likely to have both positive and negative impacts on the local economy and the City’s fiscal health. The positive impacts include reduced displacement, as well as increased economic stability and disposable income for renters. The negative impacts may include reduced labor mobility and housing availability for new residents, as rent stabilization is shown to decrease turnover by about 20 percent, and with vacancy in the City experiencing an extremely tight market, this exacerbates the limited housing options for new residents and the ability for existing residents to move, as discussed in Chapter 3.

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Rent stabilization is part of a toolkit that, along with other policies and incentives, can help alleviate some housing cost pressures. Taken in combination with other policies that encourage renter protections and additional supply, it can be part of a multi-pronged effort to improve the outlook for residents struggling to afford housing.

Recommendations
Based on the findings from the literature review, a survey of comparable cities, and the technical fiscal and economic impacts analysis, EPS recommends the City consider adopting a rent stabilization ordinance, limiting the maximum increase of rent between the following ranges to help stabilize rents and prevent displacement for the City’s most vulnerable populations:
• The lesser of 2.5 percent or 65 percent of the CPI for All Urban Consumers in the Urban West (CPI-U West)
OR
• The lesser of 2.75 percent or 75 percent of the CPI-U West Using a percentage of CPI to calculate allowed annual rent increases maintains a logical basis because the CPI itself includes changes in housing prices to measure inflation. As of December 2023, rent of primary residences of relative importance to the CPI-U West was 9.7 percent, while owners’ equivalent rent’s relative importance was 27.1 percent.17 Thus, using CPI to calculate allowable rent increases risks of “double-counting” rent, in that exogenous rent increases in non-rent stabilized units could drive higher allowable rent increases that are larger than the increased costs of maintenance services captured in the CPI. Using either 65 percent or 75 percent of CPI to benchmark allowable rent increases helps to mitigate this potential issue.

The Bureau of Labor Statistics (BLS) does publish inflation measures that exclude housing costs, titled “CPI-Less Shelter.” However, this measure can be extremely volatile, as the large relative importance of shelter costs and their relative stability year-over-year mitigates more volatile consumer goods and services costs in unstable inflationary environments. For example, during the inflationary spikes of 2021 and 2022, which were driven by COVID-related supply chain issues

17 Owners’ equivalent rent is the amount that an owner-occupied home would rent for on the open market. Relative importance indicates the relative contribution of one category of items to the overall inflation measure. For example, with 9.7 percent relative importance, a 10 percent increase in rent of primary residences would increase the overall CPI by 0.97 percent, assuming all other items’ prices do not change.

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for consumer goods, the CPI-Less Shelter was 26 percent and 12 percent higher than the overall CPI-U West, respectively. See Appendix A Table A-14.

The allowed rent increases strike a balance to benefit both the tenant and the property owner, preventing exorbitant increases in rent, while still providing a reasonable rate of return for the property owner.

Figure 1. CPI Comparison

The Rent Stabilization Ordinance should include strong tenant protections. Strong tenant protections include Just-Cause eviction protections, as well as No-Fault eviction protections such as requiring landlords to pay fair relocation costs. See Appendix A Table A-1 for no-fault eviction protections in the California cities that have rent stabilization ordinances. An additional protection the City could consider is setting a cap on the number of units that can convert to condominiums within a year and providing current tenants the right of first refusal to purchase condominium conversions.

The City should consider merging the Rent Stabilization Fee into the Rental Registry Fee and charge this fee on a per-unit basis. The fee amount should differ based on unit type: fully covered units (rental registry, tenant protections, and rent stabilization) should be higher than partially covered units (rental registry and tenant protections). The fee is to help the City recover the costs to run the program, including costs for staffing, third-party services and software, community education, and program enforcement, and should provide financial neutrality.
-2%
0%
2%
4%
6%
8%
10%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 [2]
60% CPI
80% CPI
CPI - Less Shelter
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Based on data from other cities, the additional staffing needed to establish, operate, and maintain the Rent Stabilization Ordinance ranges from the equivalent of 4.2 to 11.4 net new hires (excluding the rental registry staff) or a percentage of existing employees’ time. With the minimum level of only 4.2 new staff members, or 5.1 FTEs total, Salinas would likely need to contract third-party services for legal counsel, tenant relocation services, and mediation and dispute resolution. As staffing increases beyond 5.1 FTEs, the number of third-party source contracts will decrease.

The City should consider including language in the ordinance establishing periodic review elements such as the rent increase caps, the number of petitions, staffing levels, fee amounts, etc., to ensure the program operates effectively for property owners, tenants, and the City.

In addition, the City should take careful consideration to explicitly include any elements they would like to retain from Costa-Hawkins, such as exempting single-family homes, exempting new development, and providing vacancy decontrol. If these are not included in the City’s ordinance and the statewide ballot initiative set for the November 2024 ballot to repeal Costa- Hawkins passes, the local ordinance would apply to all rental housing, including single-family units, and rents would not reset to market for new tenants.

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Regulatory Context
This chapter summarizes the existing California legal context relevant to evaluating the fiscal and economic impact of the proposed ordinance and the specific provisions of the proposed ordinance in this context.

California Rent Stabilization
The California Tenant Protection Act established a statewide maximum allowable rent increase and just-cause eviction protections. The statewide policy caps rent increases at the lesser of 5 percent plus the increase in the regional CPI, or 10 percent of the lowest rent charged over the 12 months before the increase. 18 Cities and counties also may enact their own rent stabilization with a lower rent cap than the statewide provision. However, any local ordinance is limited by the Costa-Hawkins Rental Act, which exempts single-family homes, condominiums, and all housing built after 1995 from rent stabilization (but not just-cause eviction). State law also dictates that all units covered by rent stabilization are subject to vacancy decontrol, allowing landlords to establish market-rate rents for new tenants.
19 There is a statewide ballot initiative set for the November 2024 ballot that would repeal Costa-Hawkins.20 If the initiative passes, any local ordinance not explicitly written to exempt single-family homes or provide vacancy decontrol will take effect, as would be the case for Salinas, as described further below. Therefore, if Costa-Hawkins is repealed, the City’s proposed rent stabilization ordinance, if approved, would apply to all rental housing, including single-family units, and rents would not reset to market for new tenants.

Assorted studies on rent stabilization in California suggest that approximately 30 cities in the State currently have some form of a program, or about 7 percent of the total cities (accounting for 22 percent of the State’s population).21

18 Rent Control Is Here: California’s Tenant Protection Act of 2019 | Nolo 19 Costa-Hawkins Act • California Apartment Association (caanet.org) 20 California Prohibit State Limitations on Local Rent Control Initiative (2024) - Ballotpedia 21 California Rent Control Law | Nolo
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As illustrated in Table 1-1, most of these cities tie rent caps to a percentage of the CPI, similar to the approach in the proposed Salinas Ordinance. A smaller number of cities cap rent at an annual percentage increase, ranging from 2 percent to 10 percent, regardless of the CPI.

Summary of Salinas’ Proposed
Ordinance
The “City of Salinas Rent Stabilization and Tenant Protection Ordinance” (Ordinance) proposes to establish an annual rent increase cap of the lesser of a specified percentage or a percentage of the CPI (percentage amounts to be determined later) and establish just-cause eviction protections. As illustrated in Table 1-1, 60 percent of CPI threshold is the lower end (e.g., more favorable for existing tenants) than other California cities that have such ordinances (the average is 78 percent of CPI).

Like most rent stabilization programs, the proposed Ordinance applies to all covered units irrespective of household income (e.g., it is not means tested).

As in Costa-Hawkins, the Ordinance exempts the following properties:
• Any residential real property with a certificate of occupancy issued after February 1, 1995.
• Rental units in hotels, motels, and inns (for a period of fewer than 30 days). • Dormitories.
• Rental units in any hospital, convent, monastery, or extended care facility. • A rental unit that has been the primary residence of the landlord since the beginning of the tenancy, and where the landlord shares a bathroom or kitchen with the tenant.
• Rental units fully owned, operated, and managed by a county government unit, agency, or authority, if applicable. Federal, State, or administrative regulations specifically exempt the units from local rent stabilization. • Mobile homes located in mobile home parks.

Notably, the Ordinance does not exempt single-family or vacated units. While these units are exempt from rent stabilization under Costa-Hawkins, if voters repeal this law (as proposed in a statewide ballot measure), both single-family and vacated units would thereafter be covered by the proposed Ordinance.

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In addition, the Ordinance provides the following policy stipulations to protect both tenants and property owners:
• Reasonable rate of return.
• Tenant protection for rent reduction.
• Landlord petition for rent increase.
• Petition for pass through for specific capital improvements. • Rent increase ineffective (e.g., landlord fails to comply with the provisions of the Ordinance).
• Notice requirements.
• Violations and remedies.

If passed, the City would fund the administration of the Ordinance through the Rent Program Fee charged to landlords per non-exempt unit per year. The amount of the fee has yet to be determined. Other complaint-driven enforcement jurisdictions charge fees that range from $59 to $144 per unit.

Additional Renter Protections
Rent stabilization is a single policy tool designed to protect renters, and other rental protections and aid should be considered as well. For example, from March 2021 through the end of 2023, the City partnered with United Way to establish a funding agreement, providing the City with $15 million to assist with more than 3,800 rental payments. The program serves low-income residents throughout Monterey County who are at risk of becoming homeless. During this time, the City was able to help:
• 2,031 Rental Cases.
• 1,705 Utility Cases.
• 61 Motel Payments.

The City is working with United Way to develop a Homeless Housing Navigation and Stabilization Program (HHNSP), which includes partnering with the Housing Authority of Monterey County as a subgrantee. Funding will be used by the City’s housing case navigators to provide case management, housing navigation referrals, and financial assistance with application fees, deposits, move-in fees, and storage fees to help residents obtain stable housing. These services are provided to individuals that are already a part of the City’s Emergency Motel Program (EMP) or the Salinas Outreach and Response Team (SORT).

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The City is not assisting with rental or utility services but helps provide referrals to outside services using the Smart Referral Network (SRN). The City is working on partnering with Monterey College of Law to assist tenants with tenant/landlord mediation services.

Potential Options for Additional Renter Protection
In addition to or in place of a rent stabilization ordinance, the following renter protection methods can be considered:
• Assembly Bill (AB) 1482: The California Tenant Protection Act of 2019.

This law went into effect January 1, 2020, and expires on January 1, 2030.

These are the two main aspects of this law:
‒ Requires a landlord to have a “just cause” to terminate a tenancy. ‒ Limits annual rent increases to more than 5 percent + local CPI, or 10 percent, whichever is lower.

This law applies to units that were constructed 15 years ago or more, which differs from Costa-Hawkins, in that unit age is on a rolling basis. Another difference is it can apply to single-family homes and condominiums if those units are owned by a real estate trust, a corporation, or an LLC with at least one corporate member.
• Additional renter protection programs provided by other cities:
‒ Just-cause eviction ordinances.
‒ Tenant protection ordinances.
‒ Legal assistance.
‒ Fair housing services.
‒ Emergency assistance programs.
‒ Housing stability assistance program.

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Literature Review and Case Study
The impact of rent stabilization ordinances on communities largely depends on the framework of the policy and the context of the local housing market. That said, there are common themes that can be gleaned from empirical and academic studies on the topic. Traditional economic analyses often focused on negative aspects of rent control, a much stricter form of rent regulation originating from World War II-era price controls that are now only applicable to approximately 24,000 rental units located exclusively in New York City.22 Under the rent control regime that was in place between 1943 and 1968 in New York City, landlords were required to apply to a rent commission for rental increases, with no allowances for automatic inflationary increases of rent.23 Although economic theory predicts that such a hard price ceiling, coupled with no exemptions for new construction, would significantly depress new construction of rental housing and investment in maintenance and upkeep of current units, such strict policies were only in place temporarily and are not reflective of the more nuanced policies in place in most jurisdictions.24
Nearly all rent stabilization policies currently in place include significant allowances for automatic inflationary adjustments of rent, increases for capital improvements, vacancy decontrol, and exemptions for new construction, mitigating harmful effects on new construction and maintenance investment from the price control aspect of the policies. Most empirical studies on more moderate rent stabilization policies indicate that the policy is effective in its intended goal of reducing rent for existing tenants. However, rent stabilization policies have also been found to cause a range of other impacts on the housing market, including increased rent for new residents and reduced housing mobility/displacement.

Impacts on other factors are more ambiguous. A summary of the salient findings from a variety of empirical rent stabilization studies is provided below.

22 New York City Rent Guidelines Board, 2024. Frequently Asked Questions. https://rentguidelinesboard.cityofnewyork.us/resources/faqs/. Accessed June 18, 2024. 23 Cavadias, M., 2017. A Brief History of Rent Regulation in New York. Hypocrite Reader. https://hypocritereader.com/81/rent-regulation-nyc. Accessed June 18, 2024. 24 Jenkins, B., 2009. Rent Control: Do Economists Agree? Econ Journal Watch. Vol. 6, Issue 1.

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Impacts on Renter Displacement
Almost all academic research indicates that tenants in rent-stabilized apartments have longer tenures and are less likely to move than renters in non-rent-stabilized units.25 In other words, households that are protected from rapid rent increases appear less likely to move. In a 2019 Stanford research paper, authors Diamond, McQuade, and Qian (DMQ) examined the impacts of San Francisco’s rent stabilization after a 1994 law removed an exemption for small multifamily units in the city. The paper concluded that San Francisco’s rent stabilization lowered renter displacement by about 20 percent.26 The authors note that rent stabilization had an especially significant impact in preventing the displacement of racial minorities. A summary of stabilization’s impacts by PolicyLink noted that tenants living in rent-stabilized units move less frequently and are less likely to experience forced moves.27
The “strictness,” as measured by the magnitude of rent increases allowed and the burden of proof necessary to raise rents beyond the standard allowable increases, of rent control policies is strongly correlated with longer tenancies.28 Under extremely strict rent control regimes, such as those that existed in New York City before 1968, the impacts on tenant mobility can be extreme, with a 1992 study finding that the typical tenant in a rent-controlled unit would remain in the same unit for 18 years longer than a similar tenant in a non-rent-controlled unit. 29 Although economic analyses of strict rent control policies have often focused on the misallocation of rent control’s benefits (i.e., that most benefits accrue to upper income households), recent analysis of rapidly gentrifying neighborhoods in the San Francisco Bay Area finds that rent stabilization is uniquely effective in preventing displacement of extremely low-income households. 30 25 Pastor, M.; Carter, V.; Abood, M. 2018. Rent Matters: What are the Impacts of Rent Stabilization Measures? https://dornsife.usc.edu/eri/wp- content/uploads/sites/41/2023/01/2018RentMattersPERE.pdf 26 DMQ.pdf (stanford.edu)
27 OurHomesOurFuture_Web_08-02-19.pdf (policylink.org)
28 Crispell, M., 2016. Rent Control Policy Brief. University of California Berkeley Urban Displacement Project.
29 Ault, R.l Jackson, J.; & Saba, R. 1992. The Effect of Long-Term Rent Control on Tenant Mobility.
30 Hwang, J., et al., 2022. Who Benefits from Tenant Protections? The Effects of Rent Stabilization and Just Cause for Evictions on Residential Mobility in the Bay Area. University of California Berkeley Institute of Governmental Studies Policy Brief.

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In Salinas, increasing housing stability for the City’s rental community, specifically the 81 percent of renter-occupied units comprising Latinx residents, and other vulnerable residents such as farmworkers, the elderly, and low-income households, is key to ensuring quality of life for these communities and the City as a whole. Research from San Mateo County shows that displacement, whether from formal eviction or an inability to afford rent, has disastrous impacts on families’ well-being. Renters displaced from their homes experienced extremely high rates of homelessness compared to other families and, on average, were forced to move to communities with worse environmental health outcomes and longer commutes.31 Additional research from Michigan conducted during the Great Recession shows that people who move because of an inability to afford rent or mortgage are more than twice as likely to report anxiety attacks or severe depression than people who move for other reasons.

Impacts on Rental Supply
Much of the economic literature critical of rent control policies’ depressive impact on new housing development examines strict rent control policies present in New York City and many European cities immediately following World War II.32 33 However, empirical evidence from more moderate rent stabilization policies with exemptions for new construction find little to no effect on the supply of new housing. An examination of the end of rent stabilization policies in Boston, where new construction was exempted, found that being in a zone of Boston exempt from rent stabilization led to an increase of only

0.2 percentage points in the quantity of new housing.34 Similarly, analysis comparing 76 cities in New Jersey both with and without rent stabilization policies found that moderate price control policies had no statistically significant effect on new construction.35

31 Marcus, J.; Zuk, M., 2017. Displacement in San Mateo County, California: Consequences for Housing, Neighborhoods, Quality of Life, and Health. University of California Berkeley Institute of Governmental Studies Policy Brief.
32 Glaeser, Edward L. 2002. Does Rent Control Reduce Segregation? Harvard Institute of Economic Research Discussion Paper No. 1985.
33 Arnott, Richard. 1995. "Time for Revisionism on Rent Control?" Journal of Economic Perspectives, 9 (1): 99–120.
34 Sims, David P. 2007. Out of Control: What Can We Learn from the End of Massachusetts Rent Control? Journal of Urban Economics 61(1).
35 Gilderbloom, John I., and Lin Ye. 2007. “Thirty Years of Rent Control: A Survey of New Jersey Cities.” Journal of Urban Affairs 29(2).

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While moderate rent stabilization policies with exemptions for new construction may not depress new housing development, they may lead to the conversion of existing rental units to condominiums, generating a shift toward for-sale housing. Over the 36-year study period, DMQ found that impacted landlords reduced the supply of available rental housing by 15 percent by selling to owner- occupants and redeveloping buildings. As a result, rental properties made up a smaller portion of the City’s housing over time, which increased the cost of rental housing. The shift toward for-sale housing and the increased price of rental housing together directed the City’s housing stock toward higher income households.

Because the Ordinance would apply only to multifamily buildings, the property owners of apartment buildings that qualify for rent stabilization in Salinas would have to go through the legal process to convert the rental units to condominiums.

The conversion process is complex, with many detailed steps:

1. Consult with a real estate attorney.

2. Conduct a market assessment.

3. Retain a licensed professional to examine the property.

4. Talk to a mortgage broker.

5. Understand the role of the title company.

6. Tenant notice or vacancy exemption.

7. Application process:
‒ Application.
‒ Tenant history and provisions.
‒ Inspection.
‒ CC&Rs.
‒ Site plan and floor plans.
‒ Utility plan.
‒ Tentative parcel map.
‒ Subdivision map.
‒ Preliminary title report.
‒ Affordable housing proposal, if applicable.

8. Recordation of applicable paperwork.

9. Post-conversion refinance and sales transactions.36

36 Old Republic Title, “Understanding the Condo Conversion Process,” December 14, 2022, https://www.linkedin.com/pulse/understanding-condo-conversion-process-oldrepublictitle/ (accessed May 2024).

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While apartment-to-condominium conversions would reduce rental inventory, several policies exist to mitigate the threat of these conversions, including the prohibition of condominium conversions for buildings over a certain number of units, requiring that landlords pay fair relocation costs, or providing current tenants the right of first refusal to purchase condominium units in the converted building.

Impacts on Economic Inequality
Economists have made varying conclusions on how rent stabilization impacts inequality.

While rent control does not directly decrease income inequality, the benefits of housing, rental expenditure, and neighborhood stability are much more impactful for low-income households. Because rent stabilization is a broadly targeted policy, benefitting tenants regardless of their income levels, many economists have noted that the majority of the aggregate benefits of cheaper rent accrue to middle- and upper-income households.37 However, analysis of the aggregate benefits of lower rent does not consider the relative effect of stabilized rents on households of different incomes. Lower income families spend a much larger proportion of their incomes on rent— in 2017, 80 percent of low-income households spent more than 30 percent of their income on rent, compared to only 16 percent of high-income households.38 39 Thus, the income-saving aspect of rent stabilization policies is much more impactful for low-income households than for higher income households, even if the nominal dollar benefit is the same.

However, rent stabilization (along with the robust tenant protections that often accompany these policies) allow lower income families to remain in neighborhoods even as rental prices and neighborhood incomes rise. As noted in the DMQ study of San Francisco rent stabilization, allowing low-income families to remain in place while the average income of in-migrants rises actually increases income inequality on a citywide scale as the incomes of existing tenants and new residents diverge.

However, these families, and especially young children, strongly benefit from housing stability in an improving neighborhood. As noted above, low-income families displaced from gentrifying neighborhoods are often forced to move to neighborhoods with lower opportunity and higher environmental health risks.

37 Ault, R. & Saba, R., 1990. The economic effects of long-term rent control: The case of New York City. The Journal of Real Estate Finance and Economics. Volume 3. 38 Kimberlin, S., 2019. California’s Housing Affordability Crisis Hits Renters and Households With the Lowest Incomes the Hardest. California Budget & Policy Center. 39 Low-income is less than 200 percent of the federal poverty line, while high-income is 400 percent or more of the federal poverty line.

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In addition, as average neighborhood incomes rise, children raised in these higher income, higher opportunity neighborhoods grow up to have significantly lower incarceration rates, much higher employment rates, and higher incomes, regardless of the household income of the family in which they were raised.40 In an economy such as Salinas, where many workers cannot afford to live and may struggle to afford rent and price increases and with elevated levels of overcrowding in residential units and high percentages of households that are cost burdened, rent stabilization can allow low-income households to remain in their neighborhoods even as the housing prices and average incomes rise.

Impacts on Property Values
Classical economics holds that rent stabilization potentially impacts property values by limiting the income earning potential of rental properties and potentially by reducing investment on building maintenance, leading to building deterioration. Although studies of strict rent control policies do show that such policies lead to significantly lower property values compared to uncontrolled rental properties, moderate rent stabilization policies, allowing for vacancy decontrol and providing allowances for capital improvements, have been shown to have little to no effect on property values.

The unanticipated elimination of rent stabilization in Massachusetts in 1995 provided economists with an opportunity to study the price effects on decontrolled properties. MIT researchers analyzed the elimination of rent stabilization in Cambridge and found that previously rent-controlled properties rose in assessed value by approximately 13 percent to 25 percent over the 10 years following rent decontrol. However, Cambridge’s rent control policy and implementation was extremely strict, with very limited annual allowable rent increases for inflation and no vacancy decontrol.

Alameda County’s experience with rent stabilization in the 1970s and 1980s also allowed for studying the effects of varying degrees of strictness. Of the 13 incorporated cities in Alameda County, 1 (Berkeley) had strict rent control, with minimal allowed rent increases and no rent control, 2 (Hayward and Oakland) had more moderate rent stabilization policies, and the remaining 10 cities had no rent control or stabilization policies during the study period (1970-88). Although property values in Berkeley were approximately 50 percent lower than would have been expected during the study period, property values in Oakland and Hayward were unaffected by their more moderate policies. 41 40 Kramer, M. How the neighborhood you grow up in affects your future. https://projects.publicsource.org/pittsburgh-neighborhood-success/ 41 St. John, M., 1990. The Impact of Rent Controls on Property Value. UC Berkeley Fisher Center Working Papers. https://escholarship.org/uc/item/8c9648s1 Proposed Rent Stabilization Ordinance Analysis
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A similar study in New Jersey examined property values in 74 cities with moderate rent stabilization polices and 87 cities without rent stabilization policies.

With more than 40 years of data captured, the study found that the rent stabilization policies had no significant impact on property values, with property appreciation rates amongst the cities driven much more strongly by median household income and other demographic factors.
42 Impacts on Building Quality
Research on rent stabilization and building quality is ambiguous, largely because of the difficulty in measuring building quality and levels of maintenance on a large scale. However, empirical research has found that moderate rent stabilization policies, which allow landlords a return on investments in building improvements, do not depress the amount of building maintenance. In Boston, rent stabilization regulations were found to lead to a decline in cosmetic maintenance, although the author notes that such regulations did not appear to lead to “catastrophic failures” and that the end of such policies did not lead to an increase in “functional maintenance” of building systems such as windows, plumbing, and climate control.
43 Similarly, experience in Cambridge
showed that the strict rent control regime there, combined with the low likelihood that the city would approve rent increases for property improvements, reduced property owners’ incentive to maintain or improve their units.44 Conversely, several researchers have found that the increased length of tenure allowed by rent stabilization policies increases tenants’ willingness to maintain their own units.
45 46 Importantly, a study of moderate rent stabilization policies in North American cities finds that such policies that allow for capitalization of building improvements or increase enforcement of housing codes finds that these policies do not negatively impact owner investments in property upkeep and improvements. A key finding from that study is that “allow[ing] increases in the level of housing services [i.e., building improvements] to be valued at their market price,” is critical to ensuring that the price control aspect of rent

42 Ambrosius, J., et al., 2015. Forty years of rent control: Reexamining New Jersey’s moderate local policies after the great recession. Cities. Vol. 49. 43 2007 Sims MA rent control study - DocumentCloud
44 Autor, D.; Palmer, C.; and Pathak, P., 2014.
45 Gyourko, J., and Linneman, P. 1990. Rent Controls and Rental Housing Quality: A Note on the Effects of New York City’s Old Controls. Journal of Urban Economics Vol. 27, Issue 3. 46 Moon, Choon-Geol, and Janet G. Stotsky. 1993. The Effect of Rent Control on Housing Quality Change: A Longitudinal Analysis. The Journal of Political Economy Vol. 101, Issue 6.

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stabilization policies does not depress investment in building upkeep and improvement.47
However, when coupled with strong just-cause protections, rent stabilization has been found to provide leverage to tenants to advocate for improved conditions.

A study in Washington, D.C. found that the share of physically deficient units decreased after rent stabilization because most tenants said they were more willing to insist on repairs.48
This discrepancy may be explained by the type of investments being examined.

While tenants may have added leverage to request repairs related to basic building functionality and health and safety requirements, landlords may have less of an incentive to make more cosmetic investments or add amenities designed to appeal to new tenants.

If Salinas does implement a rent stabilization ordinance, it will be important to include strong just-cause protections and support for tenants to advocate for the health and safety of their living conditions.

Other Potential Impacts
There are many potential impacts of rent stabilization that have not been significantly studied. A few impacts have been noted by researchers but have less empirical support. One example is listed below:
• Sales tax impacts. Sales taxes may be impacted both positively and negatively by rent stabilization. Rent stabilization increases the discretionary income of renters, allowing households to spend money and boost the local economy.

Conversely, if rent stabilization were to limit the influx of higher income residents, it may reduce the number of households that spend the most money on local services:
• Workforce impacts. A lack of available housing can be a barrier to attracting and retaining employees. While the proposed Ordinance would help existing renters remain in place, it may reduce the availability of housing for people moving to Salinas. A potential spatial mismatch between employment and worker populations can limit access to jobs.
49 On the other hand, rent
stabilization and subsequent housing stability may provide economic benefits

47 Kutty, N. 2007. The impact of rent control on housing maintenance: A dynamic analysis incorporating European and North American rent regulations. Housing Studies. Vol. 11, Issue 1. 48 OurHomesOurFuture_Web_08-02-19.pdf
49 Four Reasons Why Employers Should Care about Housing | Housing Matters (urban.org) Proposed Rent Stabilization Ordinance Analysis
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through reduced worker turnover. Displacement and housing instability lead to absenteeism from work, reduced productivity, and higher turnover—people who experience eviction are up to 22 percent more likely to be laid off.50 • Improved educational outcomes. Children who move frequently have more absences and a lower likelihood of finishing school. Reduced displacement can lead to fewer moves for students and, as a result, improved overall educational outcomes. In addition, rent stabilization may help teachers who are rent burdened to continue in their profession at their local school. • Demand for social services. The benefits of improving financial stability for renters can be significant.51 All else equal, financially stable households are less likely to need public benefits. As a result, increased housing stability can potentially decrease the need for government spending on food and housing assistance. This has the potential to reduce a city’s expenditures.

Case -Study Research
A survey of the rent stabilization programs in comparative jurisdictions was completed to help examine the current requirements and fee amounts in cities with a similarly sized population or socioeconomic elements. The communities surveyed include the cities of Oxnard, Antioch, Mountain View, Oakland, and San Diego. Examining the rent stabilization elements in these communities provides insight into ordinance elements that are working well in other communities, as well as concerns from the community. Table 3-1 provides a summary of the survey of the rent stabilization ordinances in the comparative jurisdictions.

Both Oxnard and Antioch only recently adopted their rent stabilization ordinances in 2022, and while Oxnard established a straight percentage limit of 4 percent, Antioch limits rent increases to the lesser of 3 percent or 60 percent of CPI.

Oakland adopted an amendment in 2022 to their rent stabilization ordinance, which was originally passed in 1980, to the same limits as Antioch. Mountain View limits rent increases to no less than 2 percent and no more than 5 percent.

As shown in Table 1-1, cities in California with rent stabilization ordinances have allowed increases ranging from a low of 50 percent of CPI up to a maximum 10 percent increase, which is the maximum increase per State law. The City of San Diego chose to adopt the AB 1482 rent cap, discussed in Chapter 1, which limits the rent increase to 5 percent plus the percentage change in CPI or 10 percent, whichever is lower.

50 Housing and Employment Insecurity among the Working Poor | Social Problems | Oxford Academic (oup.com)
51 Thriving Residents, Thriving Cities: Family Financial Security Matters for Cities (urban.org)

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