CITY OF SALINAS COUNCIL STAFF REPORT
DATE: APRIL 21, 2026
DEPARTMENT: ADMINISTRATION
FROM: NATHAN KIEU, DEPUTY DIRECTOR OF ECONOMIC DEVELOPMENT TITLE: AMENDMENT NO. 3 TO PROFESSIONAL SERVICES AGREEMENT WITH KIMLEY-HORN AND ASSOCIATES, INC. FOR ENVIRONMENTAL CONSULTING SERVICES RELATED TO DOWNTOWN PARKING LOTS 8 AND 12 RECOMMENDED MOTION:
A motion to approve a resolution:
Approving Amendment No. 3 to the Professional Services Agreement with Kimley-Horn and Associates, Inc. for consulting services including Phase II Environmental Site Assessment activities related to Downtown Parking Lots 8 and 12 to amend the scope of services and increase the not-to-exceed compensation amount by $40,000, for a revised total not-to-exceed amount of $286,175; and Authorizing the City Manager to execute Amendment No. 3 on behalf of the City.
EXECUTIVE SUMMARY:
The City retained Kimley-Horn and Associates, Inc. in July 2025 to provide specialized consulting services advancing two Council economic development priorities: the disposition of Downtown Parking Lots 8 and 12 for mixed-use redevelopment and implementation of the Chinatown Revitalization Plan.
As part of the Parking Lots 8 and 12 scope specifically, Kimley-Horn coordinated a Phase I Environmental Site Assessment (ESA) for those properties, which identified conditions requiring further subsurface investigation. Amendment No. 3 authorizes a Phase II ESA by subconsultant CapRock Geology, Inc., increasing the contract by $40,000 to a total not-to-exceed amount of $286,175. The costs associated with this amendment will be reimbursed to the City, resulting in no net fiscal impact.
BACKGROUND:
Downtown Parking Lots 8 and 12 are City-owned surface parking lots located near the intersection of West Gabilan Street and Lincoln Avenue. The City has been actively pursuing their disposition and development for mixed uses as a Council-identified economic development priority. In July 2025, the City engaged Kimley-Horn and Associates, Inc. to provide the specialized technical and transactional expertise needed to advance this effort and to support the continued implementation of the Chinatown Revitalization Plan. The scope of work across these two priority areas, encompassing land use policy research, environmental consulting coordination, due diligence management, property acquisition support, buyer negotiations, and title transfer preparation, required a level of specialized capacity and real estate development expertise that the City contracted externally to ensure both priorities moved forward concurrently and without delay. The total contract value of $286,175 across three amendments reflects the complexity and breadth of that engagement over the life of the agreement.
The City entered into a Professional Services Agreement (the “Agreement”) with Kimley-Horn and Associates, Inc., effective July 14, 2025, with an initial not-to-exceed amount of $68,000. Amendment No. 1, executed December 12, 2025, expanded the scope of work and increased total compensation by $124,838, for a revised not-to-exceed amount of $192,838. Amendment No. 2, executed February 1, 2026, added a subconsultant agreement for Phase I ESA services, added 100 hours to the existing scope, increased compensation by $53,335 to a total not-to-exceed amount of $246,175, and extended the term of the Agreement to May 31, 2026.
The Phase I ESA identified recognized environmental conditions warranting further subsurface investigation. Amendment No. 3, the subject of this staff report, would authorize CapRock Geology, Inc. to conduct a Phase II ESA as environmental subconsultant under Kimley-Horn's oversight, increasing the contract by $40,000 for a revised total not-to-exceed amount of $286,175. The Phase II investigation will include soil borings, soil and groundwater sampling, laboratory analysis, and preparation of a technical report summarizing the findings. The costs associated with this amendment are be reimbursed to the City, resulting in no net fiscal impact.
CEQA CONSIDERATION:
This action is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 because it involves administrative activities that will not result in a direct or indirect physical change in the environment.
CALIFORNIA GOVERNMENT CODE §84308 APPLIES:
Yes, The Government Code §84308/ Levine Act does apply to this Amendment.
STRATEGIC PLAN INITIATIVE:
This action supports the City Council’s Strategic Plan goals related to Economic Development and Downtown Revitalization by advancing the environmental due diligence necessary to facilitate potential mixed-use redevelopment of Downtown Parking Lots 8 and 12.
DEPARTMENTAL COORDINATION:
The City Manager’s office coordinated on the Amendment and this report with the City Attorney’s office.
FISCAL AND SUSTAINABILITY IMPACT:
The costs associated with the Phase II Environmental Site Assessment will be reimbursed to the City pursuant to Section 4.3 of the Land Disposition and Development Agreement between the City of Salinas and Taylor Fresh Foods, Inc., dated January 1, 2026, which requires the Developer to fully reimburse the City for environmental consulting costs. As a result, this amendment is not expected to result in a net cost to the City.
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ATTACHMENTS:
Resolution, including the following Exhibits:
Exhibit A: Amendment No. 3 to Professional Services Agreement with Kimley-Horn and Associates, Inc.
Exhibit B: CapRock Geology, Inc. Phase II Environmental Site Assessment Proposal (February 25, 2026) Page | 1Page | 1
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