Salinas City Council
March 17, 2026

37. Disadvantaged Business Enterprises.The sponsor shall not discriminate on the basis of race, color, national origin, sex, in the award and performance of any DOT-assisted contract covered by 49 CFR Part 26, or in the award and performance of any concession activity contract covered by 49 CFR Part 23. In addition, the sponsor shall not discriminate on the basis of race, color, national origin or sex in the administration of its Disadvantaged Business Enterprise (DBE) and Airport Concessions Disadvantaged Business Enterprise (ACDBE) programs or the requirements of 49 CFR Parts 23 and 26. The sponsor shall take all necessary and reasonable steps under 49 CFR Parts 23 and 26 to ensure nondiscrimination in the award and administration of DOT-assisted contracts, and/or concession contracts. The sponsor’s DBE and ACDBE programs, as required by 49 CFR Parts 26 and 23, and as approved by DOT, are incorporated by reference in this agreement. Implementation of these programs is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the sponsor of its failure to carry out its approved program, the Department may impose sanctions as provided for under Parts 26 and 23 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. § 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. §§ 3801-3809, 3812). 38. Hangar Construction. If the airport owner or operator and a person who owns an aircraft agree that a hangar is to be constructed at the airport for the aircraft at the aircraft owner’s expense, the airport owner or operator will grant to the aircraft owner for the hangar a long term lease that is subject to such terms and conditions on the hangar as the airport owner or operator may impose. 39. Competitive Access. a. If the airport owner or operator of a medium or large hub airport (as defined in 49 U.S.C. § 47102) has been unable to accommodate one or more requests by an air carrier for access to gates or other facilities at that airport in order to allow the air carrier to provide service to the airport or to expand service at the airport, the airport owner or operator shall transmit a report to the Secretary that: 1. Describes the requests; 2. Provides an explanation as to why the requests could not be accommodated; and 3. Provides a time frame within which, if any, the airport will be able to accommodate the requests. b. Such report shall be due on either February 1 or August 1 of each year if the airport has been unable to accommodate the request(s) in the six month period prior to the applicable due date. 250
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Planning Agency Sponsors Assurances 5/2022 Page 1 of 7 ASSURANCESPLANNING AGENCY SPONSORS A. General.1. These assurances shall be complied with in the performance of grant agreements for airport development, airport planning, and noise compatibility program grants for airport sponsors. 2. These assurances are required to be submitted as part of the project application by sponsors requesting funds under the provisions of Title 49, U.S.C., subtitle VII, as amended. As used herein, the term "public agency sponsor" means a public agency with control of a public-use airport; the term "private sponsor" means a private owner of a public-use airport; and the term "sponsor" includes both public agency sponsors and private sponsors. 3. Upon acceptance of this grant offer by the sponsor, these assurances are incorporated in and become part of this Grant Agreement. B. Duration and Applicability. The terms, conditions and assurances of this Grant Agreement shall remain in full force and effect during the life of the project. C. Sponsor Certification. The sponsor hereby assures and certifies, with respect to this grant that: 1. General Federal Requirements It will comply with all applicable Federal laws, regulations, executive orders, policies, guidelines, and requirements as they relate to the application, acceptance and use of Federal funds for this project including but not limited to the following: FEDERAL LEGISLATION a. 49, U.S.C., subtitle VII, as amended.b. Federal Fair Labor Standards Act - 29 U.S.C. § 201, et seq. c. Hatch Act – 5 U.S.C. § 1501, et seq.1d. Rehabilitation Act of 1973 – 29 U.S.C. § 794 e. Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252) (prohibits discrimination on the basis of race, color, national origin). f. Americans with Disabilities Act of 1990, as amended, (42 U.S.C. § 12101 et seq.) (prohibits discrimination on the basis of disability). g. Age Discrimination Act of 1975 - 42 U.S.C. § 6101, et seq. h. Single Audit Act of 1984 - 31 U.S.C. § 7501, et seq.1 i. Drug-Free Workplace Act of 1988 - 41 U.S.C. § 8101 through 8105. 251
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Planning Agency Sponsors Assurances 5/2022 Page 2 of 7 j. The Federal Funding Accountability and Transparency Act of 2006, as amended (Pub. L. 109-282, as amended by section 6202 of Public Law 110-252). k. Build America, Buy America Act, P.L. 117-58, Title IX. EXECUTIVE ORDERSa. Executive Order 12372 - Intergovernmental Review of Federal Programs b. Executive Order 13166 – Improving Access to Services for Persons with Limited English Proficiency c. Executive Order 13985 – Executive Order on Advancing Racial Equity and Support for Underserved Communities Through the Federal Government d. Executive Order 13988 – Preventing and Combating Discrimination on the Basis of Gender Identity or Sexual Orientation e. Executive Order 14005 – Ensuring the Future is Made in all of America by All of America’s Workers f. Executive Order 14008 - Tackling the Climate Crisis at Home and Abroad FEDERAL REGULATIONSa. 2 CFR Part 180 – OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement). b. 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.3, 4 c. 2 CFR Part 1200 – Nonprocurement Suspension and Debarment. d. 14 CFR Part 13 – Investigative and Enforcement Procedures. e. 14 CFR Part 16 – Rules of Practice for Federally-Assisted Airport Enforcement Proceedings. f. 28 CFR Part 35 – Nondiscrimination on the Basis of Disability in State and Local Government Services. g. 28 CFR § 50.3 – U.S. Department of Justice Guidelines for the Enforcement of Title VI of the Civil Rights Act of 1964. h. 49 CFR Part 20 – New Restrictions on Lobbying. i. 49 CFR Part 21 – Nondiscrimination in Federally-Assisted Programs of the Department of Transportation – Effectuation of Title VI of the Civil Rights Act of 1964. j. 49 CFR Part 26 – Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs. k. 49 CFR Part 28 – Enforcement of Nondiscrimination on the Basis of Handicap in Programs or Activities Conducted by the Department of Transportation. l. 49 CFR Part 30 – Denial of Public Works Contracts to Suppliers of Goods and Services of Countries That Deny Procurement Market Access to U.S. Contractors. m. 49 CFR Part 32 – Governmentwide Requirements for Drug-Free Workplace (Financial Assistance) 252
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Planning Agency Sponsors Assurances 5/2022 Page 3 of 7 FOOTNOTES TO ASSURANCE C.1.1These laws do not apply to private sponsors. 22 CFR Part 200 contain requirements for State and Local Governments receiving Federal assistance. Any requirement levied upon State and Local Governments by this regulation shall apply where applicable to private sponsors receiving Federal assistance under Title 49, United States Code. 3Cost principles established in 2 CFR part 200 subpart E must be used as guidelines for determining the eligibility of specific types of expenses. 4Audit requirements established in 2 CFR part 200 subpart F are the guidelines for audits. SPECIFIC ASSURANCESSpecific assurances required to be included in grant agreements by any of the above laws, regulations or circulars are incorporated by reference in this Grant Agreement.2. Responsibility and Authority of the Sponsor. It has legal authority to apply for this grant, and to finance and carry out the proposed project; that a resolution, motion or similar action has been duly adopted or passed as an official act of the applicant’s governing body authorizing the filing of the application, including all understandings and assurances contained therein, and directing and authorizing the person identified as the official representative of the applicant to act in connection with the application and to provide such additional information as may be required. 3. Sponsor Fund Availability. It has sufficient funds available for that portion of the project costs which are not to be paid by the United States. 4. Preserving Rights and Powers It will not take or permit any action which would operate to deprive it of any of the rights and powers necessary to perform any or all of the terms, conditions, and assurances in this Grant Agreement without the written approval of the Secretary. 5. Consistency with Local Plans. The project is reasonably consistent with plans (existing at the time of submission of this application) of public agencies in the planning area. 6. Accounting System, Audit, and Record Keeping Requirements a. It shall keep all project accounts and records which fully disclose the amount and disposition by the recipient of the proceeds of this Grant, the total cost of the project in connection with which this Grant is given or used, and the amount or nature of that portion of the cost of the project supplied by other sources, and such other financial records pertinent to the project. The accounts and records shall be kept in accordance with an accounting system that will facilitate an effective audit in accordance with the Single Audit Act of 1984. b. It shall make available to the Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, for the purpose of audit and examination, any books, documents, papers, and records of the recipient that are pertinent to this Grant. The Secretary may require that an appropriate audit be 253
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Planning Agency Sponsors Assurances 5/2022 Page 4 of 7 conducted by a recipient. In any case in which an independent audit is made of the accounts of a sponsor relating to the disposition of the proceeds of a grant or relating to the project in connection with which this Grant was given or used, it shall file a certified copy of such audit with the Comptroller General of the United States not later than six (6) months following the close of the fiscal year for which the audit was made. 7. Planning Projects In carrying out planning projects: a. It will execute the project in accordance with the approved program narrative contained in the project application or with modifications similarly approved. b. It will furnish the Secretary with such periodic reports as required pertaining to the planning project and planning work activities. c. It will include in all published material prepared in connection with the planning project a notice that the material was prepared under a grant provided by the United States. d. It will make such material available for examination by the public, and agrees that no material prepared with funds under this project shall be subject to copyright in the United States or any other country. e. It will give the Secretary unrestricted authority to publish, disclose, distribute, and otherwise use any of the material prepared in connection with this grant. f. It will grant the Secretary the right to disapprove the Sponsor’s employment of specific consultants and their subcontractors to do all or any part of this project as well as the right to disapprove the proposed scope and cost of professional services. g. It will grant the Secretary the right to disapprove the use of the Sponsor’s employees to do all or any part of the project. h. It understands and agrees that the Secretary’s approval of this project grant or the Secretary’s approval of any planning material developed as part of this grant does not mean constitute or imply any assurance or commitment on the part of the Secretary to approve any pending or future application for a Federal airport grant. 8. Reports and Inspections. It will submit to the Secretary such annual or special financial and operations reports as the Secretary may reasonably request. 9. Civil Rights. It will promptly take any measures necessary to ensure that no person in the United States shall, on the grounds of race, creed, color, and national origin (including limited English proficiency) in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. §§ 2000d to 2000d-4; creed and sex (including sexual orientation and gender identity) per 49 U.S.C. § 47123 and related requirements; age per the Age Discrimination Act of 1975 and related requirements; or disability per the Americans with Disabilities Act of 1990 and related requirements, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination in any program and activity conducted with, or benefiting from, funds received from this grant. 254
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Planning Agency Sponsors Assurances 5/2022 Page 5 of 7 a. Using the definitions of activity, facility, and program as found and defined in 49 CFR §§ 21.23(b) and 21.23(e), the sponsor will facilitate all programs, operate all facilities, or conduct all programs in compliance with all non-discrimination requirements imposed by or pursuant to these assurances. b. Applicability 1. Programs and Activities. If the sponsor has received a grant (or other federal assistance) for any of the sponsor’s program or activities, these requirements extend to all of the sponsor’s programs and activities. 2. Facilities. Where it receives a grant or other federal financial assistance to construct, expand, renovate, remodel, alter, or acquire a facility, or part of a facility, the assurance extends to the entire facility and facilities operated in connection therewith. 3. Real Property. Where the sponsor receives a grant or other Federal financial assistance in the form of, or for the acquisition of real property or an interest in real property, the assurance will extend to rights to space on, over, or under such property. c. Duration. The sponsor agrees that it is obligated to this assurance for the period during which Federal financial assistance is extended to the program, except where the Federal financial assistance is to provide, or is in the form of, personal property, or real property, or interest therein, or structures or improvements thereon, in which case the assurance obligates the sponsor, or any transferee for the longer of the following periods: 1. So long as the airport is used as an airport, or for another purpose involving the provision of similar services or benefits; or 2. So long as the sponsor retains ownership or possession of the property. d. Required Solicitation Language. It will include the following notification in all solicitations for bids, Requests For Proposals for work, or material under this grant agreement and in all proposals for agreements, including airport concessions, regardless of funding source: “The (City of Salinas), in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. §§ 2000d to 2000d-4) and the Regulations, hereby notifies all bidders or offerors that it will affirmatively ensure that for any contract entered into pursuant to this advertisement, [select businesses, or disadvantaged business enterprises or airport concession disadvantaged business enterprises] will be afforded full and fair opportunity to submit bids in response to this invitation and no businesses will be discriminated against on the grounds of race, color, national origin (including limited English proficiency), creed, sex (including sexual orientation and gender identity), age, or disability in consideration for an award.” e. Required Contract Provisions. 1. It will insert the non-discrimination contract clauses requiring compliance with the acts and regulations relative to non-discrimination in Federally-assisted 255
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Planning Agency Sponsors Assurances 5/2022 Page 6 of 7 programs of the DOT, and incorporating the acts and regulations into the contracts by reference in every contract or agreement subject to the non-discrimination in Federally-assisted programs of the DOT acts and regulations. 2. It will include a list of the pertinent non-discrimination authorities in every contract that is subject to the non-discrimination acts and regulations. 3. It will insert non-discrimination contract clauses as a covenant running with the land, in any deed from the United States effecting or recording a transfer of real property, structures, use, or improvements thereon or interest therein to a sponsor. 4. It will insert non-discrimination contract clauses prohibiting discrimination on the basis of race, color, national origin (including limited English proficiency), creed, sex (including sexual orientation and gender identity), age, or disability as a covenant running with the land, in any future deeds, leases, license, permits, or similar instruments entered into by the sponsor with other parties: a. For the subsequent transfer of real property acquired or improved under the applicable activity, project, or program; and b. For the construction or use of, or access to, space on, over, or under real property acquired or improved under the applicable activity, project, or program. f. It will provide for such methods of administration for the program as are found by the Secretary to give reasonable guarantee that it, other recipients, sub-recipients, sub-grantees, contractors, subcontractors, consultants, transferees, successors in interest, and other participants of Federal financial assistance under such program will comply with all requirements imposed or pursuant to the acts, the regulations, and this assurance. g. It agrees that the United States has a right to seek judicial enforcement with regard to any matter arising under the acts, the regulations, and this assurance. 10. Engineering and Design Services. If any phase of such project has received Federal funds under Chapter 471 subchapter 1 of Title 49 U.S.C., it will award each contract, or sub-contract for program management, construction management, planning studies, feasibility studies, architectural services, preliminary engineering, design, engineering, surveying, mapping or related services in the same manner as a contract for architectural and engineering services is negotiated under Chapter 11 of Title 40 U S.C., or an equivalent qualifications-based requirement prescribed for or by the sponsor of the airport. 11. Foreign Market Restrictions. It will not allow funds provided under this Grant to be used to fund any project which uses any product or service of a foreign country during the period in which such foreign country is listed by the United States Trade Representative as denying fair and equitable market opportunities for products and suppliers of the United States in procurement and construction. 256
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Planning Agency Sponsors Assurances 5/2022 Page 7 of 7

12. Policies, Standards, and Specifications.It will carry out the project in accordance with policies, standards, and specifications approved by the Secretary. 13. Disadvantaged Business Enterprises. The recipient shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any DOT-assisted contract covered by 49 CFR Part 26. The recipient shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure nondiscrimination in the award and administration of DOT-assisted contracts. The recipient’s DBE program, as required by 49 CFR Part 26, and as approved by DOT, is incorporated by reference in this agreement. Implementation of these programs is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the recipient of its failure to carry out its approved program, the Department may impose sanctions as provided for under Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. § 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. §§ 3801-3809, 3812). 257
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#26-071, Version: 1
Award of Family Homeless Challenge Grant Funds to the Housing Authority of the County of Monterey for Acquisition of Permanent Supportive Housing Properties Approve a Resolution awarding $1,450,000 in State of California Housing and Community Development (HCD) Family Homelessness Challenge (FHC) Round 2 grant funds to the Housing Authority of the County of Monterey (HACM) to acquire up to two (2) single family homes to serve families experiencing homelessness within the City of Salinas; and authorizing the City Manager to increase the award by up to an additional 25% should additional FHC funds become available; and authorizing the City Manager to execute a Subrecipient Agreement with HACM and all documents, including amendments, necessary to implement the project consistent with FHC program requirements.

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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: MARCH 17, 2026
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: LISA BRINTON, DIRECTOR
THROUGH: ORLANDO REYES, ASSISTANT DIRECTOR
BY: KAYSHLA LOPEZ, HOMELESS SERVICES MANAGER

VINCENT MONTGOMERY, PLANNING MANAGER

KARINA VASQUEZ, COMMUNITY DEVELOPMENT ANALYST

TITLE: AWARD OF FAMILY HOMELESS CHALLENGE GRANT FUNDS

TO THE HOUSING AUTHORITY OF THE COUNTY OF

MONTEREY FOR ACQUISITION OF PERMANENT

SUPPORTIVE HOUSING PROPERTIES

RECOMMENDED MOTION:

It is recommended that the City Council approve a Resolution:

1. Awarding $1,450,000 in State of California Housing and Community Development (HCD) Family Homelessness Challenge (FHC) Round 2 grant funds to the Housing Authority of the County of Monterey (HACM) to acquire up to two (2) single family homes to serve families experiencing homelessness within the City of Salinas;

2. Authorizing the City Manager to increase the award by up to an additional 25% should additional FHC funds become available; and

3. Authorizing the City Manager to execute a Subrecipient Agreement with HACM and all documents, including amendments, necessary to implement the project consistent with FHC program requirements.

EXECUTIVE SUMMARY:

In January 2026, the Community Development Department (CDD) released a Notice of Funding Availability (NOFA)/Letter of Interest (LOI) soliciting interest from qualified organizations with the capacity to acquire single family homes and operate them as permanent supportive housing serving families experiencing homelessness. Of the four proposals received, s taff recommend HACM for the full $1,450,000 award amount based on demonstrated organizational capacity, proposed service model, staffing, housing strategy, budget reasonab leness, partnerships, and readiness to acquire property by the state deadline of June 30, 2026. 259
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BACKGROUND:

Family homelessness remain s one of the most urgent and complex components of California’s homelessness crisis. Families with children experience heightened vulnerability, including educational disruption, increased health disparities, and long -term economic instability.

Recognizing the need for targeted intervention, the State of California established the Family Homelessness Challenge (FHC) Grant Program.

In June 2022, the State of California (the “State”), Business, Consumer Services and Housing Agency (“Department”) issued a Notice of Funding Availability (NOFA) dated March 1, 2022 under the California Interagency Council on Homelessness’ Famil y Homelessness Challenge Grant (FHC) Program (“Program”) and awarded $17 million in FHC Round 1 (FHC-1) funding to ten communities statewide. The City of Salinas received $2,668,383 under Round 1 to implement a demonstration project supporting the acquisit ion and operation of scattered housing sites as permanent supportive housing for families with dependent minor children who are experiencing unsheltered homelessness or are at imminent risk of homelessness. To date using FHC-1 funds, the City has acquired a total of four (4) properties and housed three (3) families experiencing homelessness. These families were referred through the Salinas Outreach and Response Team in collaboration with the SHARE Center, and the program has maintained a 100% housing retention rate.

Building upon that initial investment, the FHC program was transferred to HCD, who released Round 2 (FHC-2) funding through a Request for Applications dated December 29, 2023. Round 2 funding was made available exclusively to eligible FHC-1 grantees who demonstrated compliance and progress toward their prioritized objectives. As an FHC-1 recipient in good standing, the City of Salinas was awarded $2,838,211 under FHC-2 to expand and strengthen its existing strategy of acquiring and operating scattered sites as permanent supportive housing. FHC-2 grant funds are restricted to capital acquisition costs with all activities to be completed by the HCD’s mandatory expenditure deadline of June 30, 2026.

Notice of Funding Availability (NOFA)/Letter of Interest (LOI) Process Given limited capacity to manage additional sites, t he City released a N otice of Funding Availability (NOFA)/Letter of Interest (LOI) to identify qualified organizations with the capacity to acquire single family homes and operate them as Permanent Supportive Housing for families experiencing homelessness. The NOFA/LOI process is an allowable competitive procurement method for selecting subrecipients under state funded housing programs. A NOFA/LOI was publicly released, open to all eligible organizations, and provided clear evaluation criteria consistent with federal and state procurement standards. The NOFA/LOI required applicants to demonstrate:
 Experience operating Housing First–aligned programs
 Participation in Homeless Services Management Information System (HMIS) and Coordinated Assessment and Referral Systems (CARS)
 Capacity to acquire and operate units within the required expenditure timeline  Partnerships with behavioral health, housing authorities, and other systems of care  A feasible acquisition strategy and budget aligned with FHC requirements 260
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The City received four (4) complete LOIs by the January 20, 2026, deadline. Table 1 provides a summary of LOIs received.

Table 1
Summary of Letter of Interests
Applicant
PSH
Experience Proposal
HMIS
Experience Population Amount
Requested
Housing
Units
Housing
Authority of
the County of
Monterey
70 years Acquire single family
home designed to
house one family per
unit following
housing first
principles.

Some
Experience
Families with
dependent minor
children who are
experiencing
unsheltered
homelessness or
are at imminent
risk
$1,450,000 1-2
YWCA
Monterey
County
No experience Program will support
families who are
experiencing
homelessness as a
result of domestic
violence.

Uses
Alternative
program
Families
experiencing
domestic
violence.
$1,450,000 1
Health
Advocacy
Team Support
(HATS)
No experience Acquire one to two
single-family homes
within the City of
Salinas to serve
families with
dependent minor
children through
Permanent
Supportive Housing.

No
experience
Families with
dependent minor
children who are
unsheltered or at
imminent risk of
homelessness
$1,450,000 1-2
CalLINKS No experience Capital costs
associated with the
acquisition of one (1)
single-family home
to be operated as
Permanent
Supportive Housing
within the City of
Salinas, in full
compliance with
program
requirements.

No
experience
Salinas Residents $1,450,000 1
Evaluation and Recommendation of Award
City staff evaluated all proposals using a rating and ranking system that considered organizational capacity, service model, staffing, housing strategy, budget reasonableness, partnerships, and readiness to implement. HACM’s LOI demonstrated:
 Extensive experience operating PSH units and administering Housing Choice Vouchers.  Strong partnerships with behavioral health and supportive service providers. 261
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 A feasible acquisition strategy aligned with the FHC expenditure timeline.  The ability to begin property identification and due diligence immediately upon Council approval.

Based on this evaluation, staff issued a Notice of Intent to Award on February 2, 2026, recommending HACM for the full $1,450,0 00 allocation and appropriation , subject to City Council approval. Additionally, the City is requesting authorization to increase the award and allocation amount by up to an additional 25% should additional unspent FHC funds be available.

CEQA CONSIDERATION:

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

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

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

Yes.

STRATEGIC PLAN INITIATIVE:

The award of $1,450,000 in Family Homelessness Challenge funds to the HACM advances the City’s Housing strategic plan goals by accelerating the creation of permanent supportive housing.

This investment expands the City’s affordable housing inventory while leveraging cross agency partnerships to deliver safe, sustainable, and service- connected- homes for families experiencing homelessness.

DEPARTMENTAL COORDINATION:

This agenda item was prepared by the Community Development Department in Coordination with the City Attorney and Finance Department.

FISCAL AND SUSTAINABILITY IMPACT:

There is no impact on the City’s General Fund. The award is fully funded by the State of California HCD Family Homelessness Challenge Grant Program. Funds will be disbursed to HACM on a reimbursement basis consistent with State requirements.

Fund

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

Remaining Budget
Appropriation
Amount Requested
2956 30.3240-66.3500 Capital Outlays Acquisition/Predev. $1,467,275 $(1,450,000) 2956 30.3240-69.1680 Financial Assistance- Housing Authority $0 $1,450,000

ATTACHMENTS:

1. Resolution Authorizing the appropriation of FHC Funds to HACM

2. Draft Agreement
262
1 RESOLUTION NO. (N.C.S.)

A RESOLUTION AUTHORIZING AWARD AND APPROPRIATION OF $1,450,000 OF FAMILY HOMELESS CHALLENGE ROUND 2 FUNDS TO THE HOUSING

AUTHORITY OF MONTEREY COUNTY FOR ACQUISITION OF PERMANANT

SUPPORTIVE HOUSING PROPERTIES

WHEREAS, the State of California (the “State”), Business, Consumer Services and Housing Agency (“Department”) issued a Notice of Funding Availability (NOFA) dated March 1, 2022 under the California Interagency Council on Homelessness’ Family Homelessness Challenge Grant (FHC) Program (“Program”); and

WHEREAS, in June 2022 the City of Salinas was awarded $2,668,383 in FHC Round 1 funds to acquire permanent housing assets and provide supportive services to families with dependent minor children experiencing homelessness; and WHEREAS, in December 2023 the State released FHC Round 2 funding exclusively to eligible Round 1 grantees demonstrating compliance and progress; and WHEREAS, the City of Salinas was awarded $2,838,211 under FHC Round 2 to expand and strengthen its strategy to make family homelessness rare, brief, and one-time; and WHEREAS, the Community Development Department issued a competitive Notice of Funding Availability/Letter of Interest (NOFA/LOI) in January 2026 to identify a qualified organization with capacity to acquire and operate scattered sites as p ermanent supportive housing (PSH) units serving families experiencing homelessness; and WHEREAS, following evaluation by a City staff review panel, the Housing Authority of the County of Monterey (HACM) was determined to be the most qualified organization based on experience, operational capacity, partnerships, and readiness to meet State expenditure deadlines; and
WHEREAS, on February 2, 2026 , the City issued a Notice of Intent to Award recommending HACM for the full allocation of $1,450,000 in FHC funds, subject to City Council approval; and
WHEREAS, the FHC funds are restricted to eligible capital acquisition costs and must be fully expended by June 30, 2026, consistent with State requirements; and WHEREAS, the City Council finds that the proposed action is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378; NOW, THEREFORE, BE IT RESOLVED as follows:

1. $1,450,000 of Family Homeless Challenge (FHC) Round 2 Funds are hereby awarded to the Housing Authority of the County of Monterey (HACM) for acquisition of up two single family homes to serve families experiencing homelessness; 263
2 2. The City Manager is hereby authorized to increase the award by up to 25% should additional FHC funds become available; and

3. The City Manager is hereby authorized to execute a Subrecipient Agreement with HACM and all documents, including amendments, necessary to implement the pro ject consistent with FHC program requirements.

PASSED AND APPROVED this 17th day of March 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

_____________________________
Dennis Donohue, Mayor

ATTEST:

_________________________
Patricia M. Soratos, City Clerk
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City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#26-088, Version: 1
Amendment No. 1 to Professional Services Agreement with Municipal Resource Group, LLC For Supervisor and Leadership Training Program
Approve a Resolution authorizing the City Manager to execute Amendment No. 1 to the Agreement for Professional Services with Municipal Resource Group, LLC to increase the amount by $59,850 for a new not to exceed amount of $284,850 over the term of three years.

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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: MARCH 17, 2026
DEPARTMENT: ADMINISTRATION
FROM: LISA MURPHY, ASSISTANT CITY MANAGER
TITLE: AMENDMENT NO. 1 TO PROFESSIONAL SERVICES

AGREEMENT WITH MUNICIPAL RESOURCE GROUP, LLC

FOR SUPERVISOR & LEADERSHIP TRAINING PROGRAM

RECOMMENDED MOTION:

A motion to a pprove a Resolution authorizing the City Manager to execute Amendment No. 1 to the Agreement for Professional Services with Municipal Resource Group, LLC to increase the amount by $59,850 for a new not to exceed amount of $284,850 over the term of three years.

EXECUTIVE SUMMARY:

The City seeks to strengthen supervisory capacity, leadership effectiveness, and organizational consistency through a structured Supervisor & Leadership Training program. Following a competitive solicitation process, Municipal Resource Group, LLC (MRG) was identified as the most qualified firm to deliver a comprehensive, practical training curriculum aligned with the City’s values and operational needs.

Approval of this Amendment No. 1 agreement will allow the City to implement standardized training for current and emerging supervisors, improve employee engagement and performance.

BACKGROUND:

Effective supervision and leadership are critical to service delivery, employee morale, and building a culture of excellence . The City has identified a need for consis tent, high -quality training for supervisors and managers across departments, including foundational supervisory skills, communication, performance management, and leadership development.

Last June the City issued a Request for Proposals (RFP) for Superviso r & Leadership Training services.

Proposals were evaluated based on experience with public agencies, curriculum relevance, instructional approach, references, and cost. MRG demonstrated extensive experience with California public -sector organizations and proposed a curriculum tailored to the City’s workforce and operational environment. A Professional Service Agreement was entered into for a term of three years for an amount not to exceed $225,000.

Each year a cohort of 35 employees will participate in nine classes . Classes are held once a month and participants must attend all classes, complete a capstone project and graduate. The program is open to all employees whether they are supervisors or hoping to become supervisors one day. For those who are “Aspiring Supervisors”, if they complete the program, they will earn one year of Supervisory credit when applying for a position that requires supervisor experience. 266
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The first cohort application period opened in February, and the City received an overwhelming number of interested employees. There were 94 applicants for just 35 spots. To try to accommodate the number of employees who wanted to participate, a second cohort of 35 employees were added to the program for this first year. The additional cohort required a contract amendment to increase the amount, which now requires City Council approval due to the new not to exceed amount.

The types of classes and training employees will receive include:
 Instruction on advanced leadership skills, performance management, communication, conflict resolution, and accountability;
 Interactive workshops, practical tools, and applied learning exercises; and  Program coordination, materials, and evaluation support.

Approval of the Professional Services Agreement Amendment No. 1 with MRG Leadership Training will provide the City with a structured, high -quality Supervisor & Leadership Training program that supports effective management, employee development, and organizational excellence.

CEQA CONSIDERATION:

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

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

Yes, Government Code §84308/Levine Act applies to this item.

STRATEGIC PLAN INITIATIVE:

This proposed Amendment supports the City of Salinas Strategic Plan 2025–2028, specifically Goal No. 4:

City Services, by strengthening the City’s ability to provide high -quality customer service. Achieving the goals outlined in the Strategic Plan requires supervisors who are equipped with the leadership, management, and communication skills necessary to effectively guide their teams and deliver services to the community.

The Supervisor & Leadership Academy directly invests in developing these competencies, ensuring the City’s workforce is prepared to implement strategic priorities and maintain excellence in service delivery.

DEPARTMENTAL COORDINATION:

This item was prepared by the City Administration Department, in collaboration with the Human Resources Department.

FISCAL AND SUSTAINABILITY IMPACT:

Funding for this agreement is available in the General Fund for Fiscal Year 2025/26. The total cost of the agreement will not exceed $134,850 in year 1, and $75,000 each in years 2 and 3 for a new not to exceed amount of $284,850. Funding for future years will be included in the upcoming budget development process.

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Fund

General Ledger Number
(Operating/CIP)

General Ledger
Account Name

Remaining Budget
Appropriation
Amount
Requested
1000.16.1140 64.2500 Other Charges Training $25,643 $59,850

ATTACHMENTS:

Resolution
MRG Agreement
Amendment No. 1
268
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RESOLUTION NO. (N.C.S.)

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
AMENDMENT NO. 1 TO THE SUPERVISOR & LEADERSHIP TRAINING PROGRAM WITH MUNICIPAL RESOURCE GROUP, LLC.

WHEREAS, In June 2025, the City issued a Request for Proposal (RFP) for a Supervisor and Leadership Training Program for City of Salinas employees; and

WHEREAS, The City selected Municipal Resource Group LLC as the most qualified and responsive consultant to provide the city training and the City entered into a three year agreement with an annual cost of $75,000 for a total amount not to exceed $225,000 for the term of the agreement; and

WHEREAS, effective supervision and leadership are critical to service delivery, employee morale, and building a culture of excellence; and

WHEREAS, each cohort can accommodate 35 employees, however when the first cohort application period opened, the city received 94 applications to attend the program. To accommodate as many people as possible, the city opened a second cohort of 35 employees for the first year; and

WHEREAS, adding the additional cohort to the first year will necessitate a contract amendment for an additional $59,850 for a new not to exceed amount of $ 284,850 over the term of three years.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council authorizes the City Manager to execute Amendment No. 1 to the Supervisor and Leadership Training Program Agreement with Municipal Resource Group LLC, increasing the not-to-exceed amount by $59,850 for a revised not-to-exceed among of $284,850 over the term of three years.

PASSED AND APPROVED this 14th day of March 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

_______________________
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Dennis Donohue, Mayor

ATTEST:

_________________________
Patricia M. Barajas, City Clerk
270

Municipal Resource Group, LLC
January 2026

AGREEMENT

FOR PROFESSIONAL SERVICES

BETWEEN

THE CITY OF SALINAS AND

MUNICIPAL RESOURCE GROUP, LLC

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Contents
RECITALS ..................................................................................................................................... 4 TERMS ........................................................................................................................................... 4

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

31. Counterparts. ...................................................................................................................... 10 Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 272308

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

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

34. Warranty of Authority........................................................................................................ 11

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

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December 2025

AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN

THE CITY OF SALINAS AND MUNICIPAL RESOURCE GROUP, LLC

This Agreement for Professional Services (the “Agreement” and/or “Contract”) is made and entered into this 15th of January, 2026, between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”), and Municipal Resource Group, LLC, a California Limited Liability Company (hereinafter “Consultant”).

RECITALS

WHEREAS, Consultant represents that it is specially trained, experienced, and competent to perform the special services which will be required by this Agreement; and

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

NOW, THEREFORE, City and Consultant agree as follows:

TERMS

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

2. Term; Completion Schedule. This Agreement shall be deemed to have commenced on January 1, 2026, and shall terminate on December 31, 2028, unless extended upon the mutual written consent of the parties. This Agreement may only be terminated pursuant to the terms of this Agreement.

3. Compensation. City hereby agrees to pay Consultant for services rendered the City pursuant to this Agreement on a time and materials basis in a total amount not to exceed two hundred twenty-five thousand dollars ($225,000), according to the rates of compensation as set forth in Exhibit B. The total amount of compensation to be paid under this Agreement shall not exceed $75,000 in Year 1 (January – December 2026), $75,000 in Year 2 (January – December 2027) and $75,000 in Year 3 (January – December 2028).

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

Except as specifically authorized by City, Consultant shall not bill City for duplicate services performed by more than one person. Consultant’s bills shall include the following information to which such services cost or pertain:

(A
) A brief description of services performed;
(B) The date the services were performed;

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December 2025

(C) The number of hours spent and by whom;
(D) A brief description of any costs incurred; and
(E) The Consultant’s signature.

Any such invoices shall be in full accord with any and all applicable provisions of this Agreement.

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

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

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

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

8. Responsibility of City. To the extent appropriate to the projects to be completed by Consultant pursuant to this Agreement, City shall:

(A) Assist Consultant by placing at its disposal all available information pertinent to the projects, including but not limited to, previous reports and any other data relative to the projects. Nothing contained herein shall obligate City to incur any expense in connection with completion of studies or acquisition of information not otherwise in the possession of City.

(B) Examine all studies, reports, sketches, drawings, specifications, proposals, and other documents presented by Consultant, and render verbally or in writing as may be Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 275311

Municipal Resource Group, LLC
December 2025

appropriate, decisions pertaining thereto within a reasonable time so as not to delay the services of Consultant.

(C) City Manager, or his designee, shall act as City’s representative with respect to the work to be performed under this Agreement. Such person shall have the complete authority to transmit instructions, receive information, interpret and define City’s policies and decisions with respect to materials, equipment, elements, and systems pertinent to Consultant’s services.

City may unilaterally change its representative upon notice to the Consultant.

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

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

10. Indemnification and Hold Harmless.

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

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

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

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

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

14. Changes to Scope of Work. City may at any time, and upon a minimum of ten (10) days written notice, seek to modify the scope of services to be provided for any project to be completed under this Agreement. Consultant shall, upon receipt of said notice, determine the Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 276312

Municipal Resource Group, LLC
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impact on both time and compensation of such change in scope and notify City in writing. Upon agreement between City and Consultant as to the extent of said impacts to time and compensation, an amendment to this Agreement shall be prepared describing such changes.

Execution of the amendment by City and Consultant shall constitute the Consultant’s notice to proceed with the changed scope.

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

16. Termination.

(A) City shall have the authority to terminate this Agreement, upon ten days written notice to Consultant, as follows:

(1) If in the City’s opinion the conduct of the Consultant is such that the interest of the City may be impaired or prejudiced, or

(2) For any reason whatsoever.

(B) Upon termination, Consultant shall be entitled to payment of such amount as fairly compensates Consultant for all work satisfactorily performed up to the date of termination based upon the Consultant’s rates shown in Exhibit B and/or Section 3 of this Agreement, except that:

(1) In the event of termination by the City for Consultant’s default, City shall deduct from the amount due Consultant the total amount of additional expenses incurred by City as a result of such default. Such deduction from amounts due Consultant are made to compensate City for its actual additional costs incurred in securing satisfactory performance of the terms of this Agreement, including but not limited to, costs of engaging another consultant(s) for such purposes. In the event that such additional expenses shall exceed amounts otherwise due and payable to Consultant hereunder, Consultant shall pay City the full amount of such expense.

(C) In the event that this Agreement is terminated by City for any reason, Consultant shall:

(1) Upon receipt of written notice of such termination promptly cease all services on this project, unless otherwise directed by City; and

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(2) Deliver to City all documents, data, reports, summaries, correspondence, photographs, computer software output, video and audio tapes, and any other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement. Such material is to be delivered to City in completed form; however, notwithstanding the provisions of Section 15 herein, City may condition payment for services rendered to the date of termination upon Consultant’s delivery to the City of such material.

(D) In the event that this Agreement is terminated by City for any reason, City is hereby expressly permitted to assume the projects and complete them by any means, including but not limited to, an agreement with another party.

(E) The rights and remedy of the City and Consultant provided under this Section are not exclusive and are in addition to any other rights and remedies provided by law or appearing in any other section of this Agreement.

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

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

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

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

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

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

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

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23. Notices.

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

Lisa Murphy, Assistant City Manager
City of Salinas
200 Lincoln Avenue
Salinas, California 93901

With a copy to:

City Attorney
City of Salinas
200 Lincoln Avenue
Salinas, California 93901

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

Jess Deakyne, Chief Operating Officer
Municipal Resources Group, LLC
PO Box 561
Wilton, CA 95693
866-774-3222
[email protected]

(C) The execution of any such notices by the Assistant City Manager shall be effective as to Consultant as if it were by resolution or order of the City Council, and Consultant shall not question the authority of the City Manager to execute any such notice.

(D) All such notices shall either be delivered personally to the other party’s designee named above, or shall be deposited in the United States Mail, properly addressed as aforesaid, postage fully prepaid, and shall be effective the day following such deposit in the mail.

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

25. Conflict of Interest. Consultant warrants and declares that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, in any manner or Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 279315

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degree which will render the services required under the provisions of this Agreement a violation of any applicable local, state or federal law. Consultant further declares that, in the performance of this Agreement, no subcontractor or person having such an interest shall be employed. In the event that any conflict of interest should nevertheless hereinafter arise, Consultant shall promptly notify City of the existence of such conflict of interest so that City may determine whether to terminate this Agreement. Consultant further warrants its compliance with the Political Reform Act (Government Code section 81000 et seq.) and Salinas City Code Chapter 2A that apply to Consultant as the result of Consultant’s performance of the work or services pursuant to the terms of this Agreement.

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

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

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

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

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

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

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

33. Joint Representation. The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any party. No Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 280316

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presumptions or rules of interpretation based upon the identity of the party preparing or drafting the Agreement, or any part thereof, shall be applicable or invoked.

34. Warranty of Authority. Each party represents and warrants that it has the right, power, and authority to enter into this Agreement. Each party further represents and warrants that it has given any and all notices, and obtained any and all consents, powers, and authorities, necessary to permit it, and the persons entering into this Agreement for it, to enter into this Agreement.

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

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

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

CITY OF SALINAS

____________________________
René Mendez, City Manager

APPROVED AS TO FORM:

_________________________
Christopher A. Callihan, City Attorney, or
Rhonda Combs, Assistant City Attorney

MUNICIPAL RESOURCE GROUP, LLC

___________________________________
Mary Egan
Chief Executive Officer

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Exhibit A- Insurance Requirements

Insurance Requirements
Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Consultant, his agents, representatives, employees, or subcontractors. With respect to General Liability and Professional Liability, coverage should be maintained for a minimum of five (5) years after Agreement completion.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Verification of Coverage
Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 283319

Municipal Resource Group, LLC
December 2025

Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable insurance language effecting coverage required by this Agreement. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

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

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

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

Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 284320

Municipal Resource Group, LLC
December 2025

Exhibit B- Scope of Service

City of Salinas
The People Leadership Academy

Recommended Approach: Focus on Managers & Supervisors First Prioritize existing managers and supervisors in the first cohorts, while still inviting a sub-set of aspiring supervisors.

Here's WHY this approach is critical:

When aspiring supervisors develop new leadership skills but then work under managers who don't share that same foundation, those skills often don't take root. They face resistance rather than reinforcement.

By ensuring all current managers and supervisors build the same knowledge, skills, tools, and vocabulary first, you create an environment where new leaders can thrive. This is how you achieve the sustained culture and behavior change the City is seeking.

Think of it as building from the top down—not because hierarchy matters most, but because managers model what effective leadership looks like. When aspiring supervisors step into their roles, they'll land in departments that embrace and nurture their skills rather than unintentionally undermining them.

With this approach, a strong foundation will be built in the first few years, and an increasing number of aspiring supervisors will attend.

The Messaging to Staff
"This program builds a strong foundation for people leadership. We're providing this training to all managers, supervisors, and even aspiring supervisors. You don't need to be in a leadership role yet to attend—and completing all 8 classes and the capstone project counts toward one year of supervisory experience when you apply for future positions."

Suggested Course Curriculum (to be clarified by the needs assessment)

Skills to Build Personal Effectiveness
• Building Emotional Intelligence and Self-Awareness
• Communication Essentials
• Being a High-Trust Leader

Skills for Leading One-to-One
• Coaching for Results
• Managing Performance

Skills for Leading Teams
• Building a Learning Culture
• Creating a High Performing Team
• Setting and Achieving Goals

Timeline

December
Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 285321

Municipal Resource Group, LLC
December 2025

• Secure alignment around approach and calendar
• Informational kick off to Executives in Team Meeting (12/16)

January
• Week of Jan 5th – Conduct three virtual 1hr interviews (CM, ACM, HR Director) • Week of Jan 12th – Online survey out to Directors and Managers • Ongoing – Outreach to Managers, Supervisors and aspiring Supervisors to get them enrolled • Jan 20th or 21st – Enablement Session for Executives, 4hrs, In-Person

February – November
• 9 class Academy runs
• Capstone Project
• Graduation in November

Tentative Class Schedule

Wednesday, Feb 25
th
Class 1, 9am-12pm

Wednesday, March 25
th
Class 2, 9am-12pm
Management Extension 12:30-1:30pm

Wednesday, April 21st
Class 3, 9am-12pm

Wednesday, May 20th
Class 4, 9am-12pm
Management Extension 12:30-1:30pm

Wednesday, June 17th
Class 5, 9am-12pm

Wednesday, August 26th
Class 6, 9am-12pm
Management Extension 12:30-1:30pm

Wednesday, September 23rd
Class 7, 9am-12pm

Wednesday, October 21st
Class 8, 9am-12pm
Management Extension 12:30-1:30pm

Wednesday, November 18
th
Class 9, 9am-12pm
Graduation

Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 286322

Municipal Resource Group, LLC
December 2025

*Management extension classes will be determined based on topic of the day but here is a proposed flow

Compensation

Year 1:

1. Needs assessment and curriculum development (MRG will limit these hours accordingly): $300 x18 hours = $5400

2. Virtual Enablement Session for Sr Leaders In-Person (4hrs, 1 trainer): $6460

3. Program Delivery of 9 Classes Live: $6460 x 9 = $58,140

4. Contingency $5000
Total: $75,000

Year 2:

1. Executive Engagement/Development Session: Half day of training = $6783

2. Program Delivery of 9 Classes Live: $6783 x 9 = $61,047

3. Contingency $7170
Total: $75,00

Year 3:

1. Executive Engagement/Development Session: Half day of training = $7122

2. Program Delivery of 9 Classes Live: $7122 x 9 = $64,098

3. Contingency $3780
Total: $75,000

Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 287323

Agreement with Municipal Resources Group, LLC
Amendment No. 1
February 2026

AGREEMENT —AMENDMENT NO. 1 TO

FOR PROFESSIONAL SERVICES

BETWEEN CITY OF SALINAS AND MUNICIPAL RESOURCE GROUP, LLC

This Amendment No. [1] to the Agreement (the “Amendment”) is entered into this 10th day of March 2026, by and between the City of Salinas, a California charter city and municipal corporation (the “City”) and Municipal Resource Group, LLC, a California Limited Liability Company (the “Consultant”). City and Consultant may be individually referred to herein as a “Party” and collectively the City and Consultant may be referred to as the “Parties.”

RECITALS

WHEREAS, the City and Consultant first entered into a Professional Services Agreement effective January 15, 2026, pursuant to which Consultant agreed to act as and provide certain services to the City for compensation (the “Agreement”); and

WHEREAS, the City and Consultant desire to amend the Agreement to allow for additional program participants and to provide for additional compensation.

NOW, THEREFORE, in mutual consideration of the terms and conditions set forth below, the Parties agree to amend the Agreement as follows:

TERMS

1. Section 1 of the Agreement is amended to add one additional Supervisor and Leadership Training cohort for 2026 to the scope of Consultant’s services described in Exhibit B of the Agreement.

2. Section 3 of the Agreement is amended to increase the total amount of compensation to be paid during Year 1 (January – December 2026) to one hundred thirty-four thousand eight hundred fifty dollars ($134,850) thereby increasing total amount of compensation to be paid under the Agreement to two hundred eighty-four thousand eight hundred fifty dollars ($284,850).

3. All other covenants, terms, and conditions set forth in the Agreement and not amended by this Amendment shall remain in full force and effect as if fully set forth herein.

IN WITNESS WHEREOF, the undersigned, as authorized representatives of the City and Consultant have entered into this Agreement as of the date first written above.

CITY OF SALINAS

___________________________________
René Mendez, City Manager

Docusign Envelope ID: FBAF6979-43F9-443E-B9C1-14A71AFF3C61 288

Agreement with Municipal Resources Group, LLC
Amendment No. 1
February 2026

APPROVED AS TO FORM:

___________________________________
□ Christopher A. Callihan, City Attorney
□ Rhonda Combs, Assistant City Attorney

Municipal Resource Group, LLC

____________________________________
Mary Egan
Chief Executive Officer
Docusign Envelope ID: FBAF6979-43F9-443E-B9C1-14A71AFF3C61 289
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#26-102, Version: 1
Modifications to Biological Resource Mitigation Measures for Central Area Specific Plan (CASP Mitigation Measures 3.2-1 through 3.2-8)
Approve a Resolution amending the Mitigation Monitoring and Reporting Program (MMRP) for the Central Area Specific Plan (CASP) to make modifications to mitigation measures for potential impacts to certain biological resources.

City of Salinas Printed on 3/12/2026Page 1 of 1
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1 CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: MARCH 17, 2026
DEPARTMENT: CITY ATTORNEY’S OFFICE
FROM: CHRISTOPHER A. CALLIHAN, CITY ATTORNEY

TITLE: MODIFICATIONS TO BIOLOGICAL RESOURCE MITIGATION

MEASURES FOR CENTRAL AREA SPECIFIC PLAN
(CASP Mitigation Measures 3.2-1 through 3.2-8)

RECOMMENDED MOTION:

A motion to approve a Resolution amending the Mitigation Monitoring and Reporting Program (“MMRP”) for the Central Area Specific Plan ( “CASP”) to make modifications to mitigation measures for potential impacts to certain biological resources.

EXECUTIVE SUMMARY:

The proposed Resolution amends the MMRP for the CASP by making modifications to Mitigation Measures 3.2 -1 through 3.2 -8. Mitigation Measures 3.2 -1 through 3.2 -4 relate to the process required for addressing potential impacts to the California tiger salamander and California red - legged frog and their habitats. Mitigation Measure 3.2 -4 relates to the process req uired for addressing potential impacts to the Western Pond Turtle. Mitigation Measure 3.2 -6 relates to the process required for addressing potential impacts to special -status nesting birds. Mitigation Measure 3.2 -7 relates to the process required for addre ssing potential impacts to the Monterey Dusky-Footed Woodrat and special -status bats. Mitigation Measu re 3.2 -8 relates to the process required for addressing potential impacts to irrigation ditches and Gabilan Creek, Natividad Creek, and their tributaries. The recommended changes to the affected mitigation measures would benefit the City as a whole because the mitigation measures as modified could facilitate the prompter development of housing within the CASP.

BACKGROUND:

In November 2020, when the City Council approved the CASP, the Council also approved an MMRP committing the CASP developers to carry out various mitigation measures developed in the Environmental Impact Report ( “EIR”) for the CASP. The mitigation measures for the CTS assumed the need for formal inter-agency consultation and permitting under both the federal Endangered Species Act ( “ESA”)1 and the California Endangered Species Act ( “CESA”)2; and

1 16 U.S.C. § 1531 et seq.
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2 the mitigation measures for CRLF assumed the need for consultation and permitti ng under the ESA. The mitigation measures for the Western Pond Turtle and nesting birds include a reporting obligation to the state . The mitigation for impacts to irrigation ditches and Gabilan Creek and Natividad Creek and their tributaries called for inter-agency consultation and (possibly) permitting under the federal Clean Water Act (“CWA”) and under California Fish and Game Code provisions governing the alteration of the bed, channel, or bank s of rivers, stream s, and lakes.

City staff have recently learned that it is not certain that the assumed ESA and CE SA consultations for CTS and CRLF will be necessary, as City staff and the City’s environmental consultants had assumed in 2019 . It now appears that, at least in some areas within the CASP, development can occur without any adverse effects on CTS, CRLF, or their habitats. The City Attorney is therefore recommending that the relevant mitigation measures be modified to require such consultation only if CTS and CRLF are determined to be actually present within the CASP.

The proposed changes would allow the approval of discrete “development projects” within the larger CASP area to proceed without the need for ESA and/or CESA consultations on the entire CASP, so that areas free of CTS and CRLF and their habitats can proceed without such consultations. The changes might also allow the entire CASP to avoid consultations if future surveys show an absence of any suitable habitat for the two species.

City staff have also reviewed the mitigation measure dealing with the “irrigation ditches” and Gabilan Creek, Natividad Creek (and their tributaries) within the CASP area. The adopted mitigation language requires the CASP developers to obtain “jurisdictional determinations” from both the United States Army Corps of Engineers (“USACE”) and the California Department of Fish and Wildlife (“CDFW”) . These determinations would address whether USACE has authority over the ditches under the CWA and whether CDFW has au thority over them under the Fish and Game Code.

Obtaining such jurisdictional determinations from these two agencies would likely be quite time- consuming, even if the agencies were to ultimately determine they do not have any regulatory jurisdiction over the ditches. Proposed new language would save the CASP developers time by assigning the initial task of assessing possible USACE and CDFW jurisdiction over the ditches and creeks to a “qualified wetland consultant,” who would also consider the possible ju risdiction of the Regional Water Quality Control Board (“RWQCB”), which also participates in wetland permitting. If such a qualified wetland consultant f inds that these three agencies ha ve no jurisdiction over the ditches, the CASP developers could save su bstantial amounts of time and money in their efforts to build new housing in the City.

2 Fish & G. Code, § 2050 et seq.

292

3 The authors of the CASP mitigation measures assumed that the two species were present within the CASP and thus wrote the measures in a way that requires the CASP applicants to consult with the USFWS and CDFW “to obtain the appropriate regulatory approvals and authorizations regarding” both CTS and CRLF. In retrospect, this language was unnecessary , as was the implicit requirement that consultation be completed for the CASP as a whole before any portion of the CASP could be developed . The language was not needed because, r egardless of any mitigation measures adopted by the City of Salinas, private property owners such as the CASP developers are subject to all relevant federal and state environmental laws governing their property and thus will be required to comply with ESA and CESA if their proposed projects would result in the incidental take of species protected by those two statutes.

The Cit y has recently learned that, contrary to what was assumed in the 20 20 CASP EIR and MMRP, it is by no means certain that CTS and CRLF are present within the CASP or within all discrete existing or future legal parcels within the CASP. The mitigation measure s at issue, therefore, could be modified without loss of environmental protection if the City modifies them to substitute conditional language for the current language. The new language would stop short of demanding the acquisition of incidental take permi ts under ESA and CESA in the event that those species are determined, by qualified biologists, not to be present on CASP properties on which development approvals are sought. The new language would also dispense with the implicit requirement of consultatio n for the entire CASP before development could proceed anywhere within the CASP.

The proposed changes to the single approved mitigation measure dealing with the irrigation ditches and Gabilan Creek and Natividad Creek (and their tributaries) would give a “qualified wetlands consultant” a role similar to that of the above -referenced qualified biologist with respect to CTS and CRLF . The current language in the mitigation measure dealing with the ditches requires the CASP developers to get formal determinatio ns from USACE and CDFW on the question of whether those agencies exercise any legal jurisdiction over the ditches. Because these agencies already have heavy workloads, they cannot be relied upon to make such determinations expeditiously – even where their ultimate conclusions are that they have no permitting authority to exercise.

The proposed new language would authorize qualified wetlands consultant to assess these jurisdictional issues, saving the CASP developers the need to impose unnecessarily on USACE and CDFW. Formal permits from USACE and CDFW would only be required if the qualified wetlands consultant concludes that these two agencies do (or one of them does) in fact have legal authority over t he ditches. The new language also adds a new agency to the mix – the RWQCB.

Its jurisdiction over wetlands can differ from that of either USACE or CDFW.

Attachment A shows the proposed changes to the mitigation measures at issue. Proposed new language is shown with underlining. Proposed deletions are shown in strikethrough.

293

4 The proposed modifications would not sacrifice environmental protection in the name of increased flexibility. If qualified biologists , after surveying properties within the CASP, find the presence of suitable CTS or CRLF habitat, then the City will require that the loss of any such habitat from development shall be mitigated in a manner that results in “no net loss of habitat values and functions (though not necessarily acreage).” This mitigation “performance standard” will ensure that development within the CASP will avoid any significant adverse effects on CTS or CRLF habitat. An option for satisfying the standard – if the most efficient way to go – will be through the issuance of incidental take authorizations under ESA and/or CESA.

The changes to the mitigation measure addressing the ditches and creeks also maintain the existing level of environmental protection. If the ditches and creeks (and their tributaries) within the CASP are subject to USACE, CDFW, or RWQCB jurisdiction, then the laws administered by those agencies will have to be satisfied. What will change will be that the time frame for determining the existence of such jurisdiction should be substantially accelerated.

The expectation, in proposing the MMRP modifications set forth above, is that , under scenarios in which CTS habitat, CRLF habitat, and features subject to USACE, CDFW, or RWQCB jurisdiction are not found to be present within areas proposed for develo pment, the actual development of such areas, including new housing, would proceed more expeditiously than it would otherwise.

CEQA CONSIDERATION:

Covered by the CASP Final EIR. The City of Salinas has determined that the proposed actions modifying CASP Mitigation Measures 3.2 -1 through 3.2-8 are within the scope of the CASP EIR as certified by the Council in November 2020. The modifications to the mitigation measures for CTS, CRLF, and wetland features have been carefully drafted to ensure that they are as environmentally protective and stringent as the originally adopted measures being modified.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No.

STRATEGIC PLAN INITIATIVE:

This item supports the City Council’s goal of Housing (Facilitate the addition of the overall production of market rate, workforce, low-income, farm worker housing, and ADU development while minimizing impacts to neighborhoods). (2025 Strategic Plan)

DEPARTMENTAL COORDINATION

The City Attorney’s Office and Community Development Department coordinated on the preparation of the modified mitigation measures.

294

5 FISCAL AND SUSTAINABILITY IMPACT:

The proposed actions will have no effect on the City’s General Fund, as the costs of mitigation for CTS, CLRF, and wetlands will be borne by the CASP developers as costs of doing business in the development of their properties.

ATTACHMENTS:

Resolution
Attachment A: Modified Mitigation Measures

295
1 RESOLUTION NO. (N.C.S.)

RESOLUTION AMENDING MITIGATION MONITORING AND

REPORTING PROGRAM FOR CENTRAL AREA SPECIFIC PLAN
(CASP Mitigation Measures 3.2-1 through 3.2-8)

WHEREAS, in November 2020, the City Council of the City of Salinas (“City Council”) certified a Final Environmental Impact Report ( “Final EIR”) for, and approved, the Central Area Specific Plan (“CASP” or “the Project”); and
WHEREAS, in doing so, the City Council also adopted a Mitigation Monitoring and Reporting Program (“MMRP”) for the CASP via Resolution No. 21998 (N.C.S.) (see Exhibit C thereto); and
WHEREAS, the MMRP included mitigation measures addressed to the Project’s potential adverse effects on the California tiger salamander (“CTS”) and the California red -legged frog (“CRLF”) and their habitats (see Mitigation Measures 3.2 -1 through 3.2 -4), as well as the Western Pond Turtle (see Mitigation Measure 3.2 -5), birds (see Mitigation Measure 3.2 -6), the Monterey Dusky-Footed Woodrat (see Mitigation Measure 3.2-7) and bats (see Mitigation Measure 3.2-7); and WHEREAS, the MMRP also included a mitigation measure addressing the anticipated disturbance of Gabilan Creek, Natividad Creek (and their tributaries) and “irrigation ditches,” which might possibly be subject to the regulatory jurisdiction of the United States Army Corps of Engineers (“USACE”) or the California Department of Fish and Wildlife (“CDFW”); and WHEREAS, the CTS is listed as “threatened” under both the federal Endangered Species Act (“ESA”) (16 U.S.C. § 1531 et seq.) and the California Endangered Species Act (“CESA”) (Fish & G.

Code, § 2050 et seq.); and
WHEREAS, the CRLF is listed as threatened under ESA but is not listed under CESA; and WHEREAS, in their final form as set forth in the MMRP, the mitigation measures directed at the CTS assumed the need for formal consultation and permitting under both the ESA and CESA; and
WHEREAS, the mitigation measures directed at the CRLF assumed the need for consultation and permitting under the ESA; and
WHEREAS, the relevant federal agency for ESA consultation and permitting is the United 296
2 States Fish and Wildlife Service (“USFWS”), and the relevant state agency under CESA is the CDFW; and
WHEREAS, the City of Salinas (“City”) staff has recently learned that it is not certain that such ESA and CE SA consultations will actually be necessary, as the City staff and the City’s environmental consultants had assumed in 2020; and
WHEREAS, this new information suggests that there are at least some areas within the CASP in which development could occur without adverse effects on either CTS or CRLF or viable habitat for the species; and
WHEREAS, City staff has therefore recommended that the relevant mitigation measures be modified to require such ESA and/or CESA consultation only if a qualified biologist determines that habitat for CTS and CRLF is actually present, or potentially present, within areas subject to discrete proposed “development projects” within the overall CASP; and WHEREAS, City staff has also identified possible improvements to the mitigation measures directed at the Western Pond Turtle, birds, bats, and the Monterey Dusky-Footed Woodrat; and WHEREAS, City staff has also ide ntified possible improvements to the sole mitigation measure directed at Gabilan Creek and Natividad Creek (and their tributaries) and the irrigation ditches and/or roadside ditches within the CASP; and
WHEREAS, this measure currently requires the CASP developers to impose on USACE and CDFW by seeking from them formal determinations as to whether the two agencies exercise any regulatory authority over the filling or destruction of the ditches; and WHEREAS, the CASP developers would likely save substantial amounts of time and money if such determinations could initially be made by a qualified wetland consultant; and WHEREAS, the mitigation measure dealing with the ditches would also be improved if the qualified wetland consultant also reached a determination regarding the possible regulatory authority of the Regional Water Quality Control Board over the ditches; and WHEREAS, t he recommended changes to Mitigation Measures 3.2 -1 through 3.2 -8 could facilitate the development of housing within the CASP; and WHEREAS, the City Council is interested in taking reasonable actions to assist the CASP developers in their efforts to bring new housing to the market, thereby benefiting City residents who 297
3 are interested in purchasing, renting, or leasing such new housing; and WHEREAS, the City Council, as a legislative body, has the inherent authority to modify its legislative action approving the MMRP for the CASP; and WHEREAS, CEQA case law recognizes that adopted mitigation measures may be modified, and even deleted entirely, where an agency’s decision -making body has a “legitimate reason” for taking such action (see , e.g., Napa Citizens for Honest Government v. Napa County Bd. of Supervisors (2001) 91 Cal.App.4th 342, 358-360); and
WHEREAS, the City Council believes it has a legitimate reason for modifying CASP mitigation measures identified herein in a manner that does not weaken them from an environmental standpoint, in that such changes , by possibly avoiding unnecessary consultations under ESA , the Clean Water Act (“CWA”), CESA, and other provisions of the Fish and Game Code could result in bringing much-needed new housing to the market Salinas sooner than might otherwise be the case ; and
WHEREAS, the changes to CASP Mitigation Measures 3.2 -1 through 3.2 -8 do not represent a weakening of the measures, in that the measures as modified will:
(i) include a performance standard by which, if qualified biologists, after surveying properties within the CASP, find the presence of suitable CTS habitat or CRLF habitat, devel opment must be mitigated in a manner resulting in “no net loss of habitat values and functions (though not necessarily acreage)”;
(ii) leave in place all avoidance and minimization measures previously required to address potential impacts to CTS or CRLF, provided that suitable habitat is identified; and (iii) require a qualified wetland biologist to ascertain whether the filling and/or destruction of the irrigation and/or roadside ditches within the CASP are subject to the regulatory jurisdiction of USACE, CDFW, or RWQCB under the CWA or the Fish and Game Code; and WHEREAS, such changes to CASP Mitigation Measures 3.2 -1 through 3.2 -8 would not result in any new significant environmental effects or a substantial increase in the severity of previously identified significant effects within the meaning of section 15162, subdivision (a)(1), of the CEQA Guidelines, found in Title 14 of the California Code of Regulations; and WHEREAS, such changes to CASP Mitigation Measures 3.2-1 through 3.2-8 are “within the 298
4 scope” of the CASP EIR (see CEQA Guidelines section 15168, subdivision (c)(2) and Draft EIR, pp.

1.0-2 through 1.0-4) and thus may be approved without additional documentation under CEQA; NOW, THEREFORE, BE IT RESOLVED that the City of Salinas City Council finds and determines the following:

1. The foregoing recitals are true and correct and are included herein by reference as findings.

2. The residents of the City of Salinas will benefit from changes to CASP Mitigation Measures 3.2 -1 through 3.2 -8 in that, without weakening them from an environmental standpoint, such changes may contribute to facilitating the earlier development of new housing for thos e citizens in need of new housing.

3. The CASP EIR, without any need for augmentation, provides sufficient support for the changes to CASP Mitigation Measures 3.2-1 through 3.2-8, as set forth below.

NOW, THEREFORE, BE IT FURTHER RESOLVED that the Salinas City Council hereby:
a. Authorizes the amendment of the CASP MMRP, as approved by Resolution No. 21998 (N.C.S.) on November 17, 2020 , so that Mitigation Measures 3.2 -1 through 3.2 -8 will now read as shown on the attached (with additions shown in underlining and deletions shown in strikethrough).

b. Directs the City Community Development Department , at her discretion, within five (5) days of the enactment of this Resolution, to file with the Clerk of the County of Monterey and the Governor’s Office of Land Use and Climate Innovation , pursuant to Public Resources Code section 21152, subdivision (a), a Notice of Determin ation indicating that, in approving the Resolution, the City Council relied on the CASP EIR, as originally certified on December 19, 2019. c. Directs City Community Development Department to prepare a modified official version of the CASP MMRP reflecting t he wording changes set forth above and to make said document readily available to the CASP developers and any interested members of the public.

PASSED AND APPROVED this 17th day of March 2026, by the following vote:

AYES:

NOES:

ABSENT:
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5 ABSTAIN:

APPROVED:

Dennis Donohue, Mayor

ATTEST:

Patricia M. Barajas, City Clerk

Attachment A: Modified Mitigation Measures 3.2 -1 through 3.2 -8 (with additions shown in underlining and deletions shown in strikethrough).

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ATTACHMENT A

PROPOSED AMENDED MITIGATION MEASURES AS ADOPTED
Mitigation Measure 3.2 -1: Prior to commencement of initial grading activities for any individual development project in the Specific Plan area, the project applicant shall retain a qualified biologist to conduct pr e-construction surveys for the presence of CTS and suitable habitat for CTS. The surveys, assessments, and genetic testing that has already been performed, in addition to any additional survey needs, will be reported to the City’s Community Development Director.

If these surveys, assessments, and genetic testing indicate the presence of suitable CTS habitat, impacts to this habitat shall be mitigated in a ma nner that results in no net loss of habitat value and functions (though not necessarily acreage), as determined by the Community Development Director wit h input from the applicant’s qualified biologist and any other knowledgeab le individual whose advice the Commu nity Development Director seeks . This performanc e standard can be achieved through a combination of conservation, enhancement, restoration, or re -creation of habitat, either on -site, off-site, or a combination of both, or through the purchase of mitigation credits at a USFWS and/or CDFW approved conservation bank, and m ust be satisfied prior to any grading within the impacted portion of the property. One means of achieving this “no net loss” performance standard is to demonstrate to the Community Development Director that a sufficient mitigation program has already been required by an approved incidental take authorization issued by the USFWS pursuant to the End angered Species Act and/or by the CDFW pursuant to the California Endangered Species Act. .

Mitigation Measure 3.2-2: The following actions shall be taken to minimize or avoid any adverse effects on suitable CTS habitat that may be id entified through pre-construction surveys required by Mitigation Measure 3.2 -1: 1) conducting environmental education training for all construction personnel, 2) having a biologist with an incidental take permit (ITP) for CTS to be responsible for overseeing any hand excav ation of burrows using hand -trowels and spades per the regulatory agency protocols, 3) erecting drift fencing around the work areas if occurring during the migration/breeding season, 4) inspection of drift fencing by biologist with an ITP every 72 hours du ring the migration/breeding season 5) installation of pit traps to capture CTS migrating during 301

the rain events with a check twice daily (morning prior to construction start and evening after construction ends), 6) relocation of any CTS found immediately to a site designated by the USFWS and CDFW per protocol; and 7) post construction report. Any disturbance/decommissioning of the basin that is a known breeding site, shall be performed under the direction of the USFWS and/or CDFW. The decommissioning of this basin shall be performed during the non-breeding season.

Mitigation Measure 3.2 -3: Prior to commencement of initial grading activities for any individual development project in the Specific Plan area, the project applicantshall retain a qualified biologist to conduct pre-construction surveys for the presence of CRLF and suitable ha bitat for CRLF . The project applican t’s qualified biologist shall report its conclusions to the City’s Community Development Director. If these surveys indicate the presence of suitable CRLF habitat, impacts to this habitat shall be mitigated in a manner that results in no net loss of habitat values and functions (though not necessarily acreage), as determined by the Community Development Director with input from the applicant’s qualified biologist and any other knowled geable individual whose advice the Community Development Director seeks . This performance standard can be achieved through a combination of conservation, enhancement, restoratio n, or re-creation of habitat, either on -site, off -site, or a combination of both, or through the purchase of mitigation credits at a USFWS-approved conservation bank, and must be satisfied prior to any grading within the impacted portion of the property. One means of achieving this “no net loss” performance standard is to demonstrate to the Community Development Director that a sufficient mitigation p rogram has already been required by an approved incidental take authorization issued by the USFWS pursuant to the Endangered Species act. Mitigation Measure 3.2-4: The following actions shall be taken to minimize or avoid any adverse effects on suitable CRLF habitat that may be identified through the pre- construction surveys required by Mitigation Measure 3.2-3: 1) conducting environmental education training for all construction personnel, 2) having a biologist with a scientific collecting permit for CRLF to be responsible for overseeing any hand excavation of burrows using hand-trowels and spades per the regulatory agency protocols, 3) erecting drift fencing around the work areas if occurring during the migration/breeding season, 4) inspection of drift fencing by biologist with a scientific collecting permit every 72 hours during the migration/breeding season 5) installation of pit traps to capture CRLF migrating during the rain events with a check twice daily (morning prior to construction start and evening after construction ends), 6) relocation of any CRLF found immediately 302

to a site designated by the USFWS and CDFW per protocol; and 7) post construction report.

Mitigation Measure 3.2-5: Prior to issuance of grading and/or building permits, in order to avoid and minimize impacts to WPT to the extent feasible, the proposed project activities shall be compliant with the following Avoidance and Minimization Measures:
1) conduct environmental educ ation training for all construction personnel, 2) conduct western pond turtle surveys within creek corridors, ponded/basin areas, and irrigation ditches by a qualified biologist, 3) survey upland areas within 0.5 miles of the aquatic features for evidence of nests as well as individual turtles, 4) make a reasonable effort to capture and relocate as many western pond turtles as possible to minimize take, 5) if a nest is observed, move eggs to a suitable location or facility for incubation, and release hatchlings into the creek corridor the following autumn, 6) design habitat elements within the creek corridor to benefit western pond turtle (i.e. include logs or rafts for emergent basking sites, and upland areas adjacent to ponds in a relatively open condition), and 7) post construction report. All survey and/or handling of WPT shall be performed by a qualified biologist who shall report its conclusions to the City’s Community Development Director.

Mitigation Measure 3.2 -6: Buildin g and grading permits and plans issued for development in the project area shall note the following: If construction activities occur during the avian breeding season (February 1 – September 15) then the project proponent shall conduct pre-construction surveys to prevent impacts to special status nesting birds protected by the federal and state ESA, MBTA, and CFGC . No more than 15 days prior to the start of construction a bird survey shall be conducted by a qualified biologist to identify any active nests within the Specific Plan Area, and shall be submitted to the City’s Community Development Director. If construction stops for a period of 15 days or more during the avian breeding season than an additional bird survey shall be conducted. The qualified biologist will conduct a survey in the Specific Plan Area for all special -status birds protected by the federal and state ESA, MBTA and CFGC. The biologist shall map all nests that are within, and visible from, the Specific Plan Area. If nest s are identified, the biologist shall map the location and establish a minimum 300-foot buffer zone around active special-status nests. Construction activity shall be prohibited within the buffer zones until the young have fledged. Active special-status nests shall be monitored at least 303

twice per week during the nesting season and a report submitted to the City ’s Community Development Director monthly.

Mitigation Measure 3.2 -7: Grading and/or building permits and plans issued for development in the project area shall note the following:
• Monterey Dusky -Footed Woodrat: Any vegetation/ground disturbance to Gabilan Creek associated with the crossings or restoration should be conducted when woodrats are least likely to breed in October through November. No more than 30 days prior to construction within 50-feet of Gabilan Creek, a qualified biologist shall conduct a preconstruction survey for Monterey dusky-footed woodrat middens. At the discretion of a qualified biologist, an exclusion buffer shall be established around any woodrat middens that can be avoided, and these exclusion zones shall be fenced as Environmentally Sensitive Areas to protect the nest. If a woodrat midden cannot be avoided, potential dismantling and relocation strategies shall be developed and presented to the City ’s Community Development Director by a qualified biologist for review and/or approval. Potential dismantling and relo cation strategies may include hiring a qualified biologist to dismantle the middens by hand for relocation within the restored/created habitat along Gabilan and Natividad Creeks, or outside of the project site as appropriate. If approved by the City, a qua lified wildlife biologist may dismantle only middens within the project site that would be disturbed by construction activities.

If young are encountered during dismantling of the midden, any removed material will be replaced and a 50 -foot no -disturbance buffer will be established around the active midden. The buffer will remain until young are weaned and are able to disperse on their own accord (typically for a period of 14 days). Following dispersal of the young, all removed midden substrate will be collected and relocated to suitable woodland habitat outside of the project footprint. Appropriate personal protective equipment (e.g., respirator, gloves, and Tyvek suit) shall be used while dismantling and reloca ting woodrat nest material to protect against disease carried by rodents (e.g. hantavirus). • Bats: Fifteen days prior to construction activities within 200 feet of potential bat roosting habitat, the project applicant shall retain a qualified biologist fa miliar with bat biology to perform a preconstruction survey for roosting special-status bats, which shall be submitted to the City ’s Community Development Director . The areas with potential bat roosting habitat include: 1) the three residential complexes l ocated between Natividad Road and Gabilan Creek, 2) the outbuildings/structures located throughout 304

the Specific Plan Area, and 3) Gabilan Creek. The survey shall include a minimum of one daytime and one evening survey. The survey shall cover the trees, structures, and debris located within these complexes. If active roosting is observed, removal of the tree or building shall be avoided until the special-status bats can be excluded. All active non - maternity special-status roosting sites shall be fitted with passive exclusion devices, such as one-way flaps or doors, and all bats shall be allowed to leave voluntarily. Once it is confirmed that all special-status bats have left the roost (minimum of five days), crews shall be allowed to continue work in the area. If a special-status maternity roosting site is discovered, a minimum 50-foot buffer shall be established around the roost. The project applicant shall consult with the qualified biologist in order to determine if a greater buffer is warranted based on the bat species, roost location, and specific construction activities to be performed in the vicinity. The buffer shall stay in effect until all young are determined to be volant (i.e., able to fly and feed independently) by a qualified biologist.

Once it is determined that all young are volant (generally by August 1st), passive exclusion devices shall be installed and all bats shall be allowed to leave voluntarily. Once it is determined by the qualified biologist that all special-status bats have left the roost (minimum of five days), crews shall be allowed to work within the buffer zone. Project Improvement Plans will include this measure as a note in the plans.

Mitigation Measure 3.2 -8: Prior to grading/building permit is suance in an area that would disturb the Gabilan Creek, Natividad Creek (and its tributaries), the project applicant shall obtain jurisdictional determinations from the USACE, RWQCB, and CDFW for the creeks that are proposed to be disturbed. Th e creeks are confirmed jurisdictional and authorization for fill from the regulatory agencies (USACE-404 permit, RWQCB-Procedures for the Discharge of Dredged or Fill Material to Waters of the State and 401 certification, CDFW -1600 Streambed Alteration Agr eement) will be necessary.

The irrigation ditches are anticipated to be exempt. Prior to the commencement of initial grading activities for any individual development project in the Specific Plan area and in an area that would disturb the irrigation ditche s, the project applicant shall retain a qualified w etland consultant to evaluate whether such ditches may be subject to the regulatory authority of either the USACE, RWQCB, or CDFW. If the qualified wetland consultant determines that any or all of these agencies are likely to have regulatory authority over these ditches, then the project applicant shall obtain a jurisdictional determination from the appropriate agencies for the ditc hes that ar e proposed to be disturbed. If it is determined that these ditches are subject to such regulatory authority 305

and will be impacted, then authorization for fill from the regulatory agencies for example, USACE-404 permit, RWQCB-401 certification, or-1600 Streambed Alteration Agreement) will be necessary and shall be adhered to throughout the construction phase. If such authorization is required, then ata minimum, the project applicant shall replace on a “no net loss” basis (minimum 1:1 ratio) the acreage and function of all wetland s and other waters that would be removed, lost, or degraded as a result of project implementation or operations,required by the USACE, RWQCB, and CDFW through their permitting processes. It is anticipated that t he restoration of Gabilan and Natividad Creeks will result in up to 104 acres of wetland and riparian habitat creation (net of any recreational amenities and public facilities required to facilitate the project), which will serve as onsite mitigation; however, a mitigation plan must be submitted and approved by the USACE, RWQCB, and CDFW through the permitting processes conducted pursuant to Clean Water Act Sections 401 and 404, Fish and Game Code Section 1600, and State Water Board Procedures for the Disch arge of Dredged or Fill Material to Waters of the State.

Alternatively, if authorized pursuant to any such permitting processes, the applicant may satisfy these mitiga tion requirements by purchasing credits at an approved USACE, RWQCB, and/or CDFW mitigation bank, as applicable.
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January 2026

AGREEMENT

FOR PROFESSIONAL SERVICES

BETWEEN

THE CITY OF SALINAS AND

MUNICIPAL RESOURCE GROUP, LLC

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Contents
RECITALS ..................................................................................................................................... 4 TERMS ........................................................................................................................................... 4

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

31. Counterparts. ...................................................................................................................... 10 Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 272308

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

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

34. Warranty of Authority........................................................................................................ 11

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

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December 2025

AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN

THE CITY OF SALINAS AND MUNICIPAL RESOURCE GROUP, LLC

This Agreement for Professional Services (the “Agreement” and/or “Contract”) is made and entered into this 15th of January, 2026, between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”), and Municipal Resource Group, LLC, a California Limited Liability Company (hereinafter “Consultant”).

RECITALS

WHEREAS, Consultant represents that it is specially trained, experienced, and competent to perform the special services which will be required by this Agreement; and

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

NOW, THEREFORE, City and Consultant agree as follows:

TERMS

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

2. Term; Completion Schedule. This Agreement shall be deemed to have commenced on January 1, 2026, and shall terminate on December 31, 2028, unless extended upon the mutual written consent of the parties. This Agreement may only be terminated pursuant to the terms of this Agreement.

3. Compensation. City hereby agrees to pay Consultant for services rendered the City pursuant to this Agreement on a time and materials basis in a total amount not to exceed two hundred twenty-five thousand dollars ($225,000), according to the rates of compensation as set forth in Exhibit B. The total amount of compensation to be paid under this Agreement shall not exceed $75,000 in Year 1 (January – December 2026), $75,000 in Year 2 (January – December 2027) and $75,000 in Year 3 (January – December 2028).

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

Except as specifically authorized by City, Consultant shall not bill City for duplicate services performed by more than one person. Consultant’s bills shall include the following information to which such services cost or pertain:

(A
) A brief description of services performed;
(B) The date the services were performed;

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(C) The number of hours spent and by whom;
(D) A brief description of any costs incurred; and
(E) The Consultant’s signature.

Any such invoices shall be in full accord with any and all applicable provisions of this Agreement.

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

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

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

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

8. Responsibility of City. To the extent appropriate to the projects to be completed by Consultant pursuant to this Agreement, City shall:

(A) Assist Consultant by placing at its disposal all available information pertinent to the projects, including but not limited to, previous reports and any other data relative to the projects. Nothing contained herein shall obligate City to incur any expense in connection with completion of studies or acquisition of information not otherwise in the possession of City.

(B) Examine all studies, reports, sketches, drawings, specifications, proposals, and other documents presented by Consultant, and render verbally or in writing as may be Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 275311

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appropriate, decisions pertaining thereto within a reasonable time so as not to delay the services of Consultant.

(C) City Manager, or his designee, shall act as City’s representative with respect to the work to be performed under this Agreement. Such person shall have the complete authority to transmit instructions, receive information, interpret and define City’s policies and decisions with respect to materials, equipment, elements, and systems pertinent to Consultant’s services.

City may unilaterally change its representative upon notice to the Consultant.

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

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

10. Indemnification and Hold Harmless.

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

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

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

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

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

14. Changes to Scope of Work. City may at any time, and upon a minimum of ten (10) days written notice, seek to modify the scope of services to be provided for any project to be completed under this Agreement. Consultant shall, upon receipt of said notice, determine the Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 276312

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impact on both time and compensation of such change in scope and notify City in writing. Upon agreement between City and Consultant as to the extent of said impacts to time and compensation, an amendment to this Agreement shall be prepared describing such changes.

Execution of the amendment by City and Consultant shall constitute the Consultant’s notice to proceed with the changed scope.

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

16. Termination.

(A) City shall have the authority to terminate this Agreement, upon ten days written notice to Consultant, as follows:

(1) If in the City’s opinion the conduct of the Consultant is such that the interest of the City may be impaired or prejudiced, or

(2) For any reason whatsoever.

(B) Upon termination, Consultant shall be entitled to payment of such amount as fairly compensates Consultant for all work satisfactorily performed up to the date of termination based upon the Consultant’s rates shown in Exhibit B and/or Section 3 of this Agreement, except that:

(1) In the event of termination by the City for Consultant’s default, City shall deduct from the amount due Consultant the total amount of additional expenses incurred by City as a result of such default. Such deduction from amounts due Consultant are made to compensate City for its actual additional costs incurred in securing satisfactory performance of the terms of this Agreement, including but not limited to, costs of engaging another consultant(s) for such purposes. In the event that such additional expenses shall exceed amounts otherwise due and payable to Consultant hereunder, Consultant shall pay City the full amount of such expense.

(C) In the event that this Agreement is terminated by City for any reason, Consultant shall:

(1) Upon receipt of written notice of such termination promptly cease all services on this project, unless otherwise directed by City; and

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(2) Deliver to City all documents, data, reports, summaries, correspondence, photographs, computer software output, video and audio tapes, and any other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement. Such material is to be delivered to City in completed form; however, notwithstanding the provisions of Section 15 herein, City may condition payment for services rendered to the date of termination upon Consultant’s delivery to the City of such material.

(D) In the event that this Agreement is terminated by City for any reason, City is hereby expressly permitted to assume the projects and complete them by any means, including but not limited to, an agreement with another party.

(E) The rights and remedy of the City and Consultant provided under this Section are not exclusive and are in addition to any other rights and remedies provided by law or appearing in any other section of this Agreement.

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

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

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

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

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

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

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

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23. Notices.

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

Lisa Murphy, Assistant City Manager
City of Salinas
200 Lincoln Avenue
Salinas, California 93901

With a copy to:

City Attorney
City of Salinas
200 Lincoln Avenue
Salinas, California 93901

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

Jess Deakyne, Chief Operating Officer
Municipal Resources Group, LLC
PO Box 561
Wilton, CA 95693
866-774-3222
[email protected]

(C) The execution of any such notices by the Assistant City Manager shall be effective as to Consultant as if it were by resolution or order of the City Council, and Consultant shall not question the authority of the City Manager to execute any such notice.

(D) All such notices shall either be delivered personally to the other party’s designee named above, or shall be deposited in the United States Mail, properly addressed as aforesaid, postage fully prepaid, and shall be effective the day following such deposit in the mail.

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

25. Conflict of Interest. Consultant warrants and declares that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, in any manner or Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 279315

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degree which will render the services required under the provisions of this Agreement a violation of any applicable local, state or federal law. Consultant further declares that, in the performance of this Agreement, no subcontractor or person having such an interest shall be employed. In the event that any conflict of interest should nevertheless hereinafter arise, Consultant shall promptly notify City of the existence of such conflict of interest so that City may determine whether to terminate this Agreement. Consultant further warrants its compliance with the Political Reform Act (Government Code section 81000 et seq.) and Salinas City Code Chapter 2A that apply to Consultant as the result of Consultant’s performance of the work or services pursuant to the terms of this Agreement.

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

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

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

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

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

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

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

33. Joint Representation. The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any party. No Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 280316

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presumptions or rules of interpretation based upon the identity of the party preparing or drafting the Agreement, or any part thereof, shall be applicable or invoked.

34. Warranty of Authority. Each party represents and warrants that it has the right, power, and authority to enter into this Agreement. Each party further represents and warrants that it has given any and all notices, and obtained any and all consents, powers, and authorities, necessary to permit it, and the persons entering into this Agreement for it, to enter into this Agreement.

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

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

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

CITY OF SALINAS

____________________________
René Mendez, City Manager

APPROVED AS TO FORM:

_________________________
Christopher A. Callihan, City Attorney, or
Rhonda Combs, Assistant City Attorney

MUNICIPAL RESOURCE GROUP, LLC

___________________________________
Mary Egan
Chief Executive Officer

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Exhibit A- Insurance Requirements

Insurance Requirements
Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Consultant, his agents, representatives, employees, or subcontractors. With respect to General Liability and Professional Liability, coverage should be maintained for a minimum of five (5) years after Agreement completion.

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

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

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

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

Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 282318

Municipal Resource Group, LLC
December 2025

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

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

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

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

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

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

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

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

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

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

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

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

Verification of Coverage
Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 283319

Municipal Resource Group, LLC
December 2025

Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable insurance language effecting coverage required by this Agreement. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

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

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

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

Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 284320

Municipal Resource Group, LLC
December 2025

Exhibit B- Scope of Service

City of Salinas
The People Leadership Academy

Recommended Approach: Focus on Managers & Supervisors First Prioritize existing managers and supervisors in the first cohorts, while still inviting a sub-set of aspiring supervisors.

Here's WHY this approach is critical:

When aspiring supervisors develop new leadership skills but then work under managers who don't share that same foundation, those skills often don't take root. They face resistance rather than reinforcement.

By ensuring all current managers and supervisors build the same knowledge, skills, tools, and vocabulary first, you create an environment where new leaders can thrive. This is how you achieve the sustained culture and behavior change the City is seeking.

Think of it as building from the top down—not because hierarchy matters most, but because managers model what effective leadership looks like. When aspiring supervisors step into their roles, they'll land in departments that embrace and nurture their skills rather than unintentionally undermining them.

With this approach, a strong foundation will be built in the first few years, and an increasing number of aspiring supervisors will attend.

The Messaging to Staff
"This program builds a strong foundation for people leadership. We're providing this training to all managers, supervisors, and even aspiring supervisors. You don't need to be in a leadership role yet to attend—and completing all 8 classes and the capstone project counts toward one year of supervisory experience when you apply for future positions."

Suggested Course Curriculum (to be clarified by the needs assessment)

Skills to Build Personal Effectiveness
• Building Emotional Intelligence and Self-Awareness
• Communication Essentials
• Being a High-Trust Leader

Skills for Leading One-to-One
• Coaching for Results
• Managing Performance

Skills for Leading Teams
• Building a Learning Culture
• Creating a High Performing Team
• Setting and Achieving Goals

Timeline

December
Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 285321

Municipal Resource Group, LLC
December 2025

• Secure alignment around approach and calendar
• Informational kick off to Executives in Team Meeting (12/16)

January
• Week of Jan 5th – Conduct three virtual 1hr interviews (CM, ACM, HR Director) • Week of Jan 12th – Online survey out to Directors and Managers • Ongoing – Outreach to Managers, Supervisors and aspiring Supervisors to get them enrolled • Jan 20th or 21st – Enablement Session for Executives, 4hrs, In-Person

February – November
• 9 class Academy runs
• Capstone Project
• Graduation in November

Tentative Class Schedule

Wednesday, Feb 25
th
Class 1, 9am-12pm

Wednesday, March 25
th
Class 2, 9am-12pm
Management Extension 12:30-1:30pm

Wednesday, April 21st
Class 3, 9am-12pm

Wednesday, May 20th
Class 4, 9am-12pm
Management Extension 12:30-1:30pm

Wednesday, June 17th
Class 5, 9am-12pm

Wednesday, August 26th
Class 6, 9am-12pm
Management Extension 12:30-1:30pm

Wednesday, September 23rd
Class 7, 9am-12pm

Wednesday, October 21st
Class 8, 9am-12pm
Management Extension 12:30-1:30pm

Wednesday, November 18
th
Class 9, 9am-12pm
Graduation

Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 286322

Municipal Resource Group, LLC
December 2025

*Management extension classes will be determined based on topic of the day but here is a proposed flow

Compensation

Year 1:

1. Needs assessment and curriculum development (MRG will limit these hours accordingly): $300 x18 hours = $5400

2. Virtual Enablement Session for Sr Leaders In-Person (4hrs, 1 trainer): $6460

3. Program Delivery of 9 Classes Live: $6460 x 9 = $58,140

4. Contingency $5000
Total: $75,000

Year 2:

1. Executive Engagement/Development Session: Half day of training = $6783

2. Program Delivery of 9 Classes Live: $6783 x 9 = $61,047

3. Contingency $7170
Total: $75,00

Year 3:

1. Executive Engagement/Development Session: Half day of training = $7122

2. Program Delivery of 9 Classes Live: $7122 x 9 = $64,098

3. Contingency $3780
Total: $75,000

Docusign Envelope ID: 982C0A2D-8EF1-455B-B189-7FDFDE1924B2 287323