Salinas City Council
June 2, 2026

Agreement for Services v. January 2026
Air Exchange, Inc.

June 2026

AGREEMENT FOR SERVICES BETWEEN
THE CITY OF SALINAS AND AIR EXCHANGE, INC.

Exhaust Removal Systems for Fire Stations 1-6
THIS AGREEMENT is executed this 3
rd day of June 2026, (“Agreement” or “Contract”)
between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”) and Air Exchange, Inc., a California Stock Corporation (hereinafter “Contractor”).

IT IS HEREBY MUTUALLY AGREED AS FOLLOWS:

1. Scope. Contractor hereby agrees to provide to the City, as the scope of services under this Agreement, the following services: Replace exhaust removal systems for fire stations 1-6.

Scope of work is further discussed in quotes provided by Air Exchange on Attachment B.

2. Timeliness. Contractor shall perform all tasks in a timely fashion, as set forth more specifically in Section 3 below. Failure to so perform is hereby deemed a material breach of this Agreement, and City may terminate this Agreement with no further liability hereunder, or the city may agree in writing with Contractor to an extension of time.

3. Term. The work under this Agreement shall commence June 3rd, 2026, and shall be completed by June 3rd, 2027, unless City grants a written extension of time as set forth in Section 2 above.

4. Payment. City agrees to pay and Contractor agrees to accept as full and fair consideration for the performance of this Agreement, an amount not to exceed three hundred fourteen thousand seven hundred ten dollars and two cents ($314,710.02), as more fully described in title of Contractor’s fee schedule, Attachment C. Contractor has no right of reimbursement for expenses under this Agreement. Compensation shall become due and payable 30 days after City’s approval of Contractor’s submission of monthly written invoices to the City.

The payment of any compensation shall be contingent upon performance of the terms and conditions of this Agreement to the satisfaction of the City. If City determines that the work set forth in the written invoice has not been performed in accordance with the terms of this Agreement, City shall not be responsible for payment until such time as the work has been satisfactorily performed.

5. Meet & Confer. Contractor 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 City to insure timely and adequate performance of this Agreement.

6. Insurance. Contractor shall procure and maintain for the duration of this Agreement insurance meeting the requirements specified in Attachment A hereto.

7. Indemnification. Contractor shall hold harmless, defend at its own expense, and indemnify City and its officers, officials, employees, agents, and volunteers from and against all Docusign Envelope ID: 4F6BD6F0-0A0C-8B20-822C-4DB87EAA84CC

Agreement for Services v. January 2026
Air Exchange, Inc.

June 2026
liability, claims, damages, losses, and/or expenses including reasonable City attorney fees arising from all acts or omissions of Contractor or its officers, agents, or employees arising out of the performance of the work under this Contract, caused in whole or in part by any negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, except where caused by the active negligence, sole negligence or willful misconduct of the City.

8. Licensing. Contractor warrants that it is properly licensed to perform the work specified under this Agreement, including but not limited to possession of a current City business license.

9. Termination. City may terminate this Agreement upon ten days’ written notice. The amount of damages, if any, as a result of such termination may be decided by negotiations between the parties or before a court of competent jurisdiction.

10. Agency. In performing the services specified under this Agreement, Contractor is hereby deemed to be an independent contractor and not an agent or employee of City.

11. Non-Assignability. The rights and obligations of Contractor hereunder are not assignable and cannot be delegated without written consent of City.

12. Entire Agreement. This Agreement constitutes the entire Agreement between the parties hereto and supersedes any and all prior agreements, whether oral or written, relating to the subject matter thereof. Any modification of the Agreement will be effective only if it is in writing signed by both parties hereto.

13. Validity. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will continue in full force without being impaired or invalidated in any way.

14. Counterparts. This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts.

15. Laws. Contractor agrees that in the performance of this Agreement it will comply with all applicable State, Federal and local laws and regulations. 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.

16. Subject to Availability of Funds. In the event that the City Council, or other governing body, fails to appropriate or budget sufficient funds for the continuation of this agreement, or should funds become unavailable for any other reason, the City reserves the right to terminate this agreement upon written notice. This termination shall be effective as of the last day of the fiscal year for which funds were appropriated. Upon such termination, the Contractor will be limited to compensation for satisfactory services rendered up to the termination date.

Docusign Envelope ID: 4F6BD6F0-0A0C-8B20-822C-4DB87EAA84CC

Agreement for Services v. January 2026
Air Exchange, Inc.

June 2026

17. Levine Act Disclosure Compliance (Cal Government Code Sec. 84308). Contractor hereby affirms and warrants that it has not contributed to the campaign of any elected or appointed City official an amount totaling more than $500 within twelve (12) months of the effective date of this Agreement, except as Contractor has disclosed within its Levine Act Disclosure Form submitted by Contractor to the City. Contractor agrees, that in the event it makes any contributions subject to the Levine Act’s disclosure requirements within twelve (12) months of the effective date of this Agreement, that it will file a Levine Act Disclosure Form (or Forms). Contractor acknowledges this duty of disclosure and that the City has made the Levine Act Disclosure Form(s) readily available on the City’s public internet site under Your Government / Transparency section for Contractor’s continuous compliance.

18. Electronic Execution of Agreement. The words “execution,” “signed,” “signature,” and words of like import in this Agreement and shall be deemed to include electronic signatures or electronic records (including, without limitation, DocuSign and AdobeSign), each of which shall be of the same legal effect, validity, enforceability, and admissibility as a handwritten signature.

IN WITNESS WHEREOF, this Agreement is entered into by the parties hereto on the day and year 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

CONTRACTOR
___________________________________
By (Printed Name): ___________________
Docusign Envelope ID: 4F6BD6F0-0A0C-8B20-822C-4DB87EAA84CC Chris Koss

Agreement for Services v. January 2026
Air Exchange, Inc.

June 2026
Its (Title): ___________________________
Docusign Envelope ID: 4F6BD6F0-0A0C-8B20-822C-4DB87EAA84CC Assistant Secretary

Agreement for Services v. January 2026
Air Exchange, Inc.

June 2026
Attachment A
Insurance Requirements
Contractor shall procure and maintain for the duration of the contract, and for three years thereafter, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his/her/its officers, agents, representatives, employees, and/or subcontractors.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

1. Commercial General Liability (“CGL”): Insurance Services Office (“ISO”) Form CG 00 01 covering CGL on an occurrence basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO Form CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: ISO Form CA 0001 covering Code 1 (any auto), with limits no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employers’ Liability insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease.

4. Contractors’ Pollution Legal Liability and/or Asbestos Legal Liability and/or Errors and Omissions (if project involves environmental hazards): with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate, on an annual basis.

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

Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. At the option of the City, either: the Contractor shall cause the insurer to reduce or eliminate such self-insured retentions as respects the City, its officers, officials, employees, and volunteers; or the Contractor shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, 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.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

1. The City, 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 Contractor including materials, parts, or equipment furnished in connection with such work or operations and automobiles owned, leased, hired, or borrowed by Docusign Envelope ID: 4F6BD6F0-0A0C-8B20-822C-4DB87EAA84CC

Agreement for Services v. January 2026
Air Exchange, Inc.

June 2026
or on behalf of the Contractor. General liability coverage can be provided in the form of an endorsement to the Contractor’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).

2. For any claims related to this project, the Contractor’s insurance coverage shall be primary and insurance coverage at least as broad as ISO 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 Contractor’s insurance and shall not contribute with it.

3. Each insurance policy required by this clause shall provide that coverage shall not be canceled, except with notice to the City.

4. A copy of the claims reporting requirements must be submitted by Contractor to the City.

5. If the services involve lead-based paint or asbestos identification/remediation, the Contractor’s Pollution Liability policy shall not contain lead-based paint or asbestos exclusions. If the services involve mold identification/remediation, the Contractor’s Pollution Liability policy shall not contain a mold exclusion, and the definition of Pollution shall include microbial matter, including mold.

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

Waiver of Subrogation
Contractor hereby agrees to waive rights of subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Contractor, its employees, agents and subcontractors.

Verification of Coverage
Contractor shall furnish the City with original Certificates of Insurance including an additional insured endorsement and all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to City before work begins.

However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’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
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors. For CGL coverage subcontractors shall provide coverage with a form at least as broad as CG 20 38 04 13.

Maintenance of Insurance
Maintenance of insurance by Contractor as specified shall in no way be interpreted as relieving Docusign Envelope ID: 4F6BD6F0-0A0C-8B20-822C-4DB87EAA84CC

Agreement for Services v. January 2026
Air Exchange, Inc.

June 2026
Contractor of its indemnification obligations or any responsibility whatsoever and the Contractor may carry, at its own expense, such additional insurance as it deems necessary.

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.

Surety Bonds
Contractor shall provide the following Surety Bonds:

1. Payment bond

2. Performance bond

3. Maintenance bond
The Payment Bond and the Performance Bond shall be in a sum equal to the contract price. If the Performance Bond provides for a one-year warranty, a separate Maintenance Bond is not necessary. If the warranty period specified in the contract is for longer than one year a Maintenance Bond equal to 10% of the contract price is required. Bonds shall be duly executed by a responsible corporate surety, authorized to issue such bonds in the State of California and secured through an authorized agent with an office in California.

Builder’s Risk (Course of Construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the project and no coinsurance penalty provisions.

Builder’s Risk (Course of Construction) Insurance
Contractor may submit evidence of Builder’s Risk insurance in the form of Course of Construction coverage. Such coverage shall name the City as a loss payee as their interest may appear.

If the project does not involve new or major reconstruction, at the option of the City, an Installation Floater may be acceptable. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the Work, including during transit, installation, and testing at the City’s site.

Docusign Envelope ID: 4F6BD6F0-0A0C-8B20-822C-4DB87EAA84CC

Agreement for Services v. January 2026
Air Exchange, Inc.

June 2026
[Attachment B]
Docusign Envelope ID: 4F6BD6F0-0A0C-8B20-822C-4DB87EAA84CC

Agreement for Services v. January 2026
Air Exchange, Inc.

June 2026
[Attachment C]
Docusign Envelope ID: 4F6BD6F0-0A0C-8B20-822C-4DB87EAA84CC Award Letter
U.S. Department of Homeland Security
Washington, D.C. 20472
Effective date: 09/23/2025
Estefania Vargas

CITY OF SALINAS
200 LINCOLN AVE
SALINAS, CA 93901
EMW-2024-FG-01700
Dear Estefania Vargas,
Congratulations on behalf of the Department of Homeland Security. Your application submitted for the Fiscal Year (FY) 2024 Assistance to Firefighters Grant (FG) Grant funding opportunity has been approved in the amount of $188,260.24 in Federal funding. As a condition of this grant, you are required to contribute non-Federal funds equal to or greater than 10.0% of the Federal funds awarded, or $18,826.02 for a total approved budget of $207,086.26. Please see the FY 2024 FG Notice of Funding Opportunity for information on how to meet this cost share requirement.

Before you request and receive any of the Federal funds awarded to you, you must establish acceptance of the award through the FEMA Grants Outcomes (FEMA GO) system. By accepting this award, you acknowledge that the terms of the following documents are incorporated into the terms of your award:

Summary Award Memo - included in this document
Agreement Articles - included in this document
Obligating Document - included in this document
2024 FG Notice of Funding Opportunity (NOFO) - incorporated by reference Please make sure you read, understand, and maintain a copy of these documents in your official file for this award.

Sincerely,
Stacey Street
Deputy Assistant Administrator
Grant Programs Directorate
Summary Award Memo
Program: Fiscal Year 2024 Assistance to Firefighters Grant Recipient: CITY OF SALINAS
UEI-EFT: CHDWBL29G9Z5
Award number: EMW-2024-FG-01700
Summary description of award
The purpose of the Assistance to Firefighters Grant program is to protect the health and safety of the public and firefighting personnel against fire and fire-related hazards. After careful consideration, FEMA has determined that the recipient's project or projects submitted as part of the recipient's application and detailed in the project narrative as well as the request details section of the application - including budget information - was consistent with the Assistance to Firefighters Grant Program's purpose and was worthy of award.

Except as otherwise approved as noted in this award, the information you provided in your application for Fiscal Year (FY) 2024 Assistance to Firefighters Grant funding is incorporated into the terms and conditions of this award. This includes any documents submitted as part of the application.

Amount awarded table
The amount of the award is detailed in the attached Obligating Document for Award.

The following are the budgeted estimates for object classes for this award (including Federal share plus your cost share, if applicable):

Approved scope of work
After review of your application, FEMA has approved the below scope of work. Justifications are provided for any differences between the scope of work in the original application and the approved scope of work under this award. You must submit scope or budget revision requests for FEMA's prior approval, via an amendment request, as appropriate per 2 C.F.R. § 200.308 and the FY2024 FG NOFO.

Approved request details:

Modify facilities
Object Class Total
Personnel $0.00
Fringe benefits $0.00
Travel $0.00
Equipment $207,086.26
Supplies $0.00
Contractual $0.00
Construction $0.00
Other $0.00
Indirect charges $0.00
Federal $188,260.24
Non-federal $18,826.02
Total $207,086.26
Program Income $0.00
Source Capture Exhaust System(s)

DESCRIPTION
Plymovent Diesel Exhaust Removal System

QUANTITY UNIT PRICE TOTAL
1 $68,000.00 $68,000.00

BUDGET CLASS
Equipment

CHANGE FROM APPLICATION
Unit price from $100,000.00 to $68,000.00

JUSTIFICATION
The award reflects a reduction from the amount requested in the application. Cost requested for Source Capture Exhaust System exceeds the average price range calculated from market research and prior awards for the same item.

Source Capture Exhaust System(s)

DESCRIPTION
Plymovent Diesel Exhaust Removal System

QUANTITY UNIT PRICE TOTAL
1 $19,298.34 $19,298.34

BUDGET CLASS
Equipment
Source Capture Exhaust System(s)

DESCRIPTION
Plymovent Diesel Exhaust System

QUANTITY UNIT PRICE TOTAL
1 $18,721.33 $18,721.33

BUDGET CLASS
Equipment
Source Capture Exhaust System(s)

DESCRIPTION
Plymovent Diesel Exhaust Removal System

QUANTITY UNIT PRICE TOTAL
1 $13,148.65 $13,148.65

BUDGET CLASS
Equipment
Source Capture Exhaust System(s)

DESCRIPTION
Plymovent Diesel Exhaust Removal System

QUANTITY UNIT PRICE TOTAL
1 $56,000.00 $56,000.00

BUDGET CLASS
Equipment

CHANGE FROM APPLICATION
Unit price from $81,341.94 to $56,000.00

JUSTIFICATION
The award reflects a reduction from the amount requested in the application. Cost requested for Source Capture Exhaust System exceeds the average price range calculated from market research and prior awards for the same item.

Source Capture Exhaust System(s)

DESCRIPTION
Plymovent Diesel Exhaust Removal System

QUANTITY UNIT PRICE TOTAL
1 $31,917.94 $31,917.94

BUDGET CLASS
Equipment
Agreement Articles
Program: Fiscal Year 2024 Assistance to Firefighters Grant Recipient: CITY OF SALINAS
UEI-EFT: CHDWBL29G9Z5
Award number: EMW-2024-FG-01700
Table of contents
Article
1 Assurance, Administrative Requirements, Cost Principles, Representations, and Certifications
Article
2 General Acknowledgements and Assurances
Article
3 Acknowledgement of Federal Funding from DHS
Article
4 Activities Conducted Abroad
Article
5 Age Discrimination Act of 1975
Article
6 Americans with Disabilities Act of 1990
Article
7 Best Practices for Collection and Use of Personally Identifiable Information Article
8 CHIPS and Science Act of 2022, Public Law 117-167 CHIPS Article
9 Civil Rights Act of 1964 – Title VI
Article
10 Civil Rights Act of 1968
Article
11 Communication and Cooperation with the Department of Homeland Security and Immigration Officials
Article
12 Copyright
Article
13 Debarment and Suspension
Article
14 Drug-Free Workplace Regulations
Article
15 Duplicative Costs
Article
16 Education Amendments of 1972 (Equal Opportunity in Education Act) – Title IX Article
17 Energy Policy and Conservation Act
Article
18 Equal Treatment of Faith-Based Organizations
Article
19 Anti-Discrimination
Article
20 False Claims Act and Program Fraud Civil Remedies
Article
21 Federal Debt Status
Article
22 Federal Leadership on Reducing Text Messaging while Driving Article
23 Fly America Act of 1974
Article
24 Hotel and Motel Fire Safety Act of 1990
Article
25 John S. McCain National Defense Authorization Act of Fiscal Year 2019 Article
26 Limited English Proficiency (Civil Rights Act of 1964, Title VI) Article
27 Lobbying Prohibitions
Article
28 National Environmental Policy Act
Article
29 National Security Presidential Memorandum-33 (NSPM-33) and provisions of the CHIPS and Science Act of 2022, Pub. L. 117-167, Section 10254 Article
30 Non-Supplanting Requirement
Article
31 Notice of Funding Opportunity Requirements
Article
32 Patents and Intellectual Property Rights
Article
33 Presidential Executive Orders
Article
34 Procurement of Recovered Materials
Article
35 Rehabilitation Act of 1973
Article
36 Reporting Recipient Integrity and Performance Matters Article
37 Reporting Subawards and Executive Compensation
Article
38 Required Use of American Iron, Steel, Manufactured Products, and Construction Materials
Article
39 SAFECOM
Article
40 Subrecipient Monitoring and Management
Article
41 System for Award Management and Unique Entity Identifier Requirements Article
42 Termination of a Federal Award
Article
43 Terrorist Financing
Article
44 Trafficking Victims Protection Act of 2000(TVPA)
Article
45 Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001, Pub. L. 107-56 Article
46 Use of DHS Seal, Logo and Flags
Article
47 Whistleblower Protection Act
Article
48 Environmental Planning and Historic Preservation (EHP) Review Article
49 Applicability of DHS Standard Terms and Conditions to Tribal Nations Article
50 Acceptance of Post Award Changes
Article
51 Disposition of Equipment Acquired Under the Federal Award Article
52 Prior Approval for Modification of Approved Budget
Article
53 Indirect Cost Rate
Article
54 Build America, Buy America Act (BABAA) Required Contract Provision & SelfCertification Article
55 Award Performance Goals
Article
56 EHP Compliance Review Required
Article
57 Non-Applicability of Specific Agreement Articles
Article
58 Payment Information (Updated)
Article
59 Termination of the Federal Award (Updated)
Article
60 Non-Applicability of Specific Agreement Articles
Article 1 Assurance, Administrative Requirements, Cost Principles, Representations, and Certifications
I. Recipients must complete either the Office of Management and Budget (OMB) Standard Form 424B Assurances – Non- Construction Programs, or OMB Standard Form 424D Assurances – Construction Programs, as applicable. Certain assurances in these documents may not be applicable to your program and the DHS financial assistance office (DHS FAO) may require applicants to certify additional assurances. Applicants are required to fill out the assurances, as instructed.

Article 2 General Acknowledgements and Assurances
Recipients are required to follow the applicable provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards in effect as of the federal award date and located in Title 2, Code of Federal Regulations, Part 200 and adopted by DHS at 2 C.F.R. § 3002.10. All recipients and subrecipients must acknowledge and agree to provide DHS access to records, accounts, documents, information, facilities, and staff pursuant to 2 C.F.R. § 200.337. I. Recipients must cooperate with any DHS compliance reviews or compliance investigations. II. Recipients must give DHS access to examine and copy records, accounts, and other documents and sources of information related to the federal award and permit access to facilities and personnel. III. Recipients must submit timely, complete, and accurate reports to the appropriate DHS officials and maintain appropriate backup documentation to support the reports. IV. Recipients must comply with all other special reporting, data collection, and evaluation requirements required by law, federal regulation, Notice of Funding Opportunity, federal award specific terms and conditions, and/or DHS Component program guidance. Organization costs related to data and evaluation are allowable. The definition of data and evaluation costs is in 2 C.F.R. § 200.455(c), the full text of which is incorporated by reference. V. Recipients must complete DHS Form 3095 within 60 days of receipt of the Notice of Award for the first award under which this term applies. For further instructions and to access the form, please visit: https://www.dhs.gov/civil-rightsresources-recipients-dhs-financialassistance.

Article 3 Acknowledgement of Federal Funding from DHS
Recipients must acknowledge their use of federal award funding when issuing statements, press releases, requests for proposal, bid invitations, and other documents describing projects or programs funded in whole or in part with federal award funds.

Article 4 Activities Conducted Abroad
Recipients must coordinate with appropriate government authorities when performing project activities outside the United States obtain all appropriate licenses, permits, or approvals.

Article 5 Age Discrimination Act of 1975
Recipients must comply with the requirements of the Age Discrimination Act of 1975, Pub. L. No. 94-135 (codified as amended at Title 42, U.S. Code § 6101 et seq.), which prohibits discrimination on the basis of age in any program or activity receiving federal financial assistance.

Article 6 Americans with Disabilities Act of 1990
Recipients must comply with the requirements of Titles I, II, and III of the Americans with Disabilities Act, Pub. L. No. 101-336 (1990) (codified as amended at 42 U.S.C. §§ 12101– 12213), which prohibits recipients from discriminating on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities.

Article 7 Best Practices for Collection and Use of Personally Identifiable Information
(1) Recipients who collect personally identifiable information (PII) as part of carrying out the scope of work under a federal award are required to have a publicly available privacy policy that describes standards on the usage and maintenance of the PII they collect. (2) Definition. DHS defines “PII” as any information that permits the identity of an individual to be directly or indirectly inferred, including any information that is linked or linkable to that individual.

Recipients may also find the DHS Privacy Impact Assessments: Privacy Guidance and Privacy Template as useful resources respectively.

Article 8 CHIPS and Science Act of 2022, Public Law 117-167 CHIPS (1) Recipients of DHS research and development (R&D) awards must report to the DHS Component research program office any finding or determination of sex based and sexual harassment and/or an administrative or disciplinary action taken against principal investigators or co-investigators to be completed by an authorized organizational representative (AOR) at the recipient institution. (2) Notification. An AOR must disclose the following information to agencies within 10 days of the date/the finding is made, or 10 days from when a recipient imposes an administrative action on the reported individual, whichever is sooner. Reports should include: (a) Award number, (b) Name of PI or Co-PI being reported, (c) Awardee name, (d) Awardee address, (e) AOR name, title, phone, and email address, (f) Indication of the report type: (i) Finding or determination has been made that the reported individual violated awardee policies or codes of conduct, statutes, or regulations related to sexual harassment, sexual assault, or other forms of harassment, including the date that the finding was made. (ii) Imposition of an administrative or disciplinary action by the recipient on the reporting individual related to a finding/determination or an investigation of an alleged violation of recipient policy or codes of conduct, statutes, or regulations, or other forms of harassment. (iii) The date and nature of the administrative/disciplinary action, including a basic explanation or description of the event, which should not disclose personally identifiable information regarding any complaints or individuals involved. Any description provided must be consistent with the Family Educational Rights in Privacy Act. (3) Definitions. (a) An “authorized organizational representative (AOR)” is an administrative official who, on behalf of the proposing institution, is empowered to make certifications and representations and can commit the institution to the conduct of a project that an agency is being asked to support as well as adhere to various agency policies and award requirements. (b) “Principal investigators and co-principal investigators” are award personnel supported by a grant, cooperative agreement, or contract under Federal law. (c) A “reported individual” refers to recipient personnel who have been reported to a federal agency for potential sexual harassment violations. (d) “Sex based harassment” means a form of sex discrimination and includes harassment based on sex, sex stereotypes, sex characteristics, pregnancy or related conditions, sexual orientation, and gender identity. (e) “Sexual harassment” means unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature when this conduct explicitly or implicitly affects an individual’s employment, unreasonably interferes with an individual’s work performance, or creates an intimidating, hostile, or offensive work environment, whether such activity is carried out by a supervisor or by a co-worker, volunteer, or contractor.

Article 9 Civil Rights Act of 1964 – Title VI
Recipients must comply with the requirements of Title VI of the Civil Rights Act of 1964, Pub. L. No. 88-352 (codified as amended at 42 U.S.C. § 2000d et seq.), which provides that no person in the United States will, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance. DHS implementing regulations for the Act are found at 6 C.F.R. Part 21. Recipients of a federal award from the Federal Emergency Management Agency (FEMA) must also comply with FEMA’s implementing regulations at 44 C.F.R. Part 7.

Article 10 Civil Rights Act of 1968
Recipients must comply with Title VIII of the Civil Rights Act of 1968, Pub. L.

No. 90284 (codified as amended at 42 U.S.C. § 3601 et seq.) which prohibits recipients from discriminating in the sale, rental, financing, and advertising of dwellings, or in the provision of services in connection. therewith, on the basis of race, color, national origin, religion, disability, familial status, and sex, as implemented by the U.S. Department of Housing and Urban Development at 24 C.F.R. Part 100. The prohibition on disability discrimination includes the requirement that new multifamily housing with four or more dwelling units— i.e., the public and common use areas and individual apartment units (all units in buildings with elevators and ground-floor units in buildings without elevators) —be designed and constructed with certain accessible features. (See 24 C.F.R. Part 100, Subpart D.)
Article 11 Communication and Cooperation with the Department of Homeland Security and Immigration Officials
(1) All recipients and other recipients of funds under this award must agree that they will comply with the following requirements related to coordination and cooperation with the Department of Homeland Security and immigration officials: (a) They must comply with the requirements of 8 U.S.C. §§ 1373 and 1644. These statutes prohibit restrictions on information sharing by state and local government entities with DHS regarding the citizenship or immigration status, lawful or unlawful, of any individual. Additionally, 8 U.S.C. § 1373 prohibits any person or agency from prohibiting, or in any way restricting, a Federal, State, or local government entity from doing any of the following with respect to information regarding the immigration status of any individual: 1) sending such information to, or requesting or receiving such information from, Federal immigration officials; 2) maintaining such information; or 3) exchanging such information with any other Federal, State, or local government entity; (b) They must comply with other relevant laws related to immigration, including prohibitions on encouraging or inducing an alien to come to, enter, or reside in the United States in violation of law, 8 U.S.C. § 1324(a)(1)(A)(iv), prohibitions on transporting or moving illegal aliens, 8 U.S.C. § 1324(a)(1)(A)(ii), prohibitions on harboring, concealing, or shielding from detection illegal aliens, 8 U.S.C. § 1324(a)(1)(A)(iii), and any applicable conspiracy, aiding or abetting, or attempt liability regarding these statutes; (c) That they will honor requests for cooperation, such as participation in joint operations, sharing of information, or requests for short term detention of an alien pursuant to a valid detainer. A jurisdiction does not fail to comply with this requirement merely because it lacks the necessary resources to assist in a particular instance; (d) That they will provide access to detainees, such as when an immigration officer seeks to interview a person who might be a removable alien; and (e) That they will not leak or otherwise publicize the existence of an immigration enforcement operation. (2) The recipient must certify under penalty of perjury pursuant to 28 U.S.C. § 1746 and using a form that is acceptable to DHS, that it will comply with the requirements of this term. Additionally, the recipient agrees that it will require any subrecipients or contractors to certify in the same manner that they will comply with this term prior to providing them with any funding under this award. (3) The recipient agrees that compliance with this term is material to the Government’s decision to make or continue with this award and that the Department of homeland Security may terminate this grant, or take any other allowable enforcement action, if the recipient fails to comply with this term.

Article 12 Copyright
Recipients must affix the applicable copyright notices of 17 U.S.C. §§ 401 or 402 to any work first produced under federal awards and also include an acknowledgement that the work was produced under a federal award (including the federal award number and federal awarding agency). As detailed in 2 C.F.R. § 200.315, a federal awarding agency reserves a royalty-free, nonexclusive, and irrevocable right to reproduce, publish, or otherwise use the work for federal purposes and to authorize others to do so.

Article 13 Debarment and Suspension
Recipients must comply with the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689 set forth at 2 C.F.R. Part 180 as implemented by DHS at 2 C.F.R. Part 3000. These regulations prohibit recipients from entering into covered transactions (such as subawards and contracts) with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities.

Article 14 Drug-Free Workplace Regulations
Recipients must comply with drug-free workplace requirements in Subpart B (or Subpart C, if the recipient is an individual) of 2 C.F.R. Part 3001, which adopts the Government- wide implementation (2 C.F.R. Part 182) of the DrugFree Workplace Act of 1988 (41 U.S.C. §§ 8101-8106).

Article 15 Duplicative Costs
Recipients are prohibited from charging any cost to this federal award that will be included as a cost or used to meet cost sharing requirements of any other federal award in either the current or a prior budget period. See 2 C.F.R. § 200.403(f). However, recipients may shift costs that are allowable under two or more federal awards where otherwise permitted by federal statutes, regulations, or the federal award terms and conditions.

Article 16 Education Amendments of 1972 (Equal Opportunity in Education Act) – Title IX
Recipients must comply with the requirements of Title IX of the Education Amendments of 1972, Pub. L. No. 92-318 (codified as amended at 20 U.S.C. § 1681 et seq.), which provide that no person in the United States will, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any educational program or activity receiving federal financial assistance. DHS implementing regulations are codified at 6 C.F.R. Part 17. Recipients of a federal award from the Federal Emergency Management Agency (FEMA) must also comply with FEMA’s implementing regulations at 44 C.F.R. Part 19.

Article 17 Energy Policy and Conservation Act
Recipients must comply with the requirements of the Energy Policy and Conservation Act, Pub. L. No. 94-163 (1975) (codified as amended at 42 U.S.C. § 6201 et seq.), which contain policies relating to energy efficiency that are defined in the state energy conservation plan issued in compliance with this Act.

Article 18 Equal Treatment of Faith-Based Organizations It is DHS policy to ensure the equal treatment of faith-based organizations in social service programs administered or supported by DHS or its component agencies, enabling those organizations to participate in providing important social services to beneficiaries. Recipients must comply with the equal treatment policies and requirements contained in 6 C.F.R. Part 19 and other applicable statutes, regulations, and guidance governing the participations of faith-based organizations in individual DHS programs.

Article 19 Anti-Discrimination
Recipients must comply with all applicable Federal anti-discrimination laws material to the government’s payment decisions for purposes of 31 U.S.C. § 372(b)(4). (1) Definitions. As used in this clause – (a) DEI means “diversity, equity, and inclusion.” (b) DEIA means “diversity, equity, inclusion, and accessibility.” (c) Discriminatory equity ideology has the meaning set forth in Section 2(b) of Executive Order 14190 of January 29, 2025. (d) Federal antidiscrimination laws mean Federal civil rights law that protect individual Americans from discrimination on the basis of race, color, sex, religion, and national origin. (e) Illegal immigrant means any alien, as defined in 8 U.S.C. § 1101(a)(3), who has no lawful immigration status in the United States.(2) Grant award certification. (a) By accepting the grant award, recipients are certifying that: (i) They do not, and will not during the term of this financial assistance award, operate any programs that advance or promote DEI, DEIA, or discriminatory equity ideology in violation of Federal anti-discrimination laws; and (ii) They do not engage in and will not during the term of this award engage in, a discriminatory prohibited boycott. (iii) They do not, and will not during the term of this award, operate any program that benefits illegal immigrants or incentivizes illegal immigration. (3) DHS reserves the right to suspend payments in whole or in part and/or terminate financial assistance awards if the Secretary of Homeland Security or her designee determines that the recipient has violated any provision of subsection (2). (4) Upon suspension or termination under subsection (3), all funds received by the recipient shall be deemed to be in excess of the amount that the recipient is determined to be entitled to under the Federal award for purposes of 2 C.F.R. § 200.346. As such, all amounts received will constitute a debt to the Federal Government that may be pursued to the maximum extent permitted by law.

Article 20 False Claims Act and Program Fraud Civil Remedies Recipients must comply with the requirements of the False Claims Act, 31 U.S.C. §§ 3729- 3733, which prohibit the submission of false or fraudulent claims for payment to the Federal Government. (See 31 U.S.C. §§ 3801-3812, which details the administrative remedies for false claims and statements made.)
Article 21 Federal Debt Status
All recipients are required to be non-delinquent in their repayment of any federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowances, and benefit overpayments. See OMB Circular A129.

Article 22 Federal Leadership on Reducing Text Messaging while Driving Recipients are encouraged to adopt and enforce policies that ban text messaging while driving recipient-owned, recipient-rented, or privately owned vehicles when on official government business or when performing any work for or on behalf of the Federal Government. Recipients are also encouraged to conduct the initiatives of the type described in Section 3(a) of Executive Order 13513.

Article 23 Fly America Act of 1974
Recipients must comply with Preference for U.S. Flag Air Carriers (a list of certified air carriers can be found at: Certificated Air Carriers List | US Department of Transportation, https://www.transportation.gov/policy/aviationpolicy/certificated-aircarriers-list)for international air transportation of people and property to the extent that such service is available, in accordance with the International Air Transportation Fair Competitive Practices Act of 1974, 49 U.S.C. § 40118, and the interpretative guidelines issued by the Comptroller General of the United States in the March 31, 1981, amendment to Comptroller General Decision B-138942.

Article 24 Hotel and Motel Fire Safety Act of 1990
Recipients must ensure that all conference, meeting, convention, or training space funded entirely or in part by federal award funds complies with the fire prevention and control guidelines of Section 6 of the Hotel and Motel Fire Safety Act of 1990, 15 U.S.C. § 2225a.

Article 25 John S. McCain National Defense Authorization Act of Fiscal Year 2019 Recipients, subrecipients, and their contractors and subcontractors are subject to the prohibitions described in section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, Pub. L. No. 115-232 (2018) and 2 C.F.R. §§ 200.216, 200.327, 200.471, and Appendix II to 2 C.F.R. Part 200. The statute – as it applies to DHS recipients, subrecipients, and their contractors and subcontractors – prohibits obligating or expending federal award funds on certain telecommunications and video surveillance products and contracting with certain entities for national security reasons.

Article 26 Limited English Proficiency (Civil Rights Act of 1964, Title VI) Recipients must comply with Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq.) prohibition against discrimination on the basis of national origin, which requires that recipients of federal financial assistance take reasonable steps to provide meaningful access to persons with limited English proficiency (LEP) to their programs and services. For additional assistance and information regarding language access obligations, please refer to the DHS Recipient Guidance: https://www.dhs.gov/guidance-published-helpdepartment-supported-organizationsprovide-meaningful-access-people-limited and additional resources on http://www.lep.gov.

Article 27 Lobbying Prohibitions
Recipients must comply with 31 U.S.C. § 1352 and 6 C.F.R. Part 9, which provide that none of the funds provided under a federal award may be expended by the recipient to pay any person to influence, or attempt to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with any federal action related to a federal award or contract, including any extension, continuation, renewal, amendment, or modification.

Per 6 C.F.R. Part 9, recipients must file a lobbying certification form as described in Appendix A to 6 C.F.R. Part 9 or available on Grants.gov as the Grants.gov Lobbying Form and file a lobbying disclosure form as described in Appendix B to 6 C.F.R. Part 9 or available on Grants.gov as the Disclosure of Lobbying Activities (SF-LLL).

Article 28 National Environmental Policy Act
Recipients must comply with the requirements of the National Environmental Policy Act of 1969, Pub. L. No. 91-190 (1970) (codified as amended at 42 U.S.C. § 4321 et seq.) (NEPA) and the Council on Environmental Quality (CEQ) Regulations for Implementing the Procedural Provisions of NEPA, which require recipients to use all practicable means within their authority, and consistent with other essential considerations of national policy, to create and maintain conditions under which people and nature can exist in productive harmony and fulfill the social, economic, and other needs of present and future generations of Americans.

Article 29 National Security Presidential Memorandum-33 (NSPM-33) and provisions of the CHIPS and Science Act of 2022, Pub. L. 117-167, Section 10254
(1) Recipient research institutions (“covered institutions”) must comply with the requirements in NSPM-33 and provisions of Pub. L.117-167, Section 10254 (codified at 42 U.S.C. § 18951) certifying that the institution has established and operates a research security program that includes elements relating to:
(a) cybersecurity; (b) foreign travel security; (c) research security training; and (d) export control training, as appropriate. (2) Definition. “Covered institutions” means recipient research institutions receiving federal Research and Development (R&D) science and engineering support “in excess of $50 million per year.”
Article 30 Non-Supplanting Requirement
Recipients of federal awards under programs that prohibit supplanting by law must ensure that federal funds supplement but do not supplant non-federal funds that, in the absence of such federal funds, would otherwise have been made available for the same purpose.

Article 31 Notice of Funding Opportunity Requirements
All the instructions, guidance, limitations, scope of work, and other conditions set forth in the Notice of Funding Opportunity (NOFO) for this federal award are incorporated by reference. All recipients must comply with any such requirements set forth in the NOFO. If a condition of the NOFO is inconsistent with these terms and conditions and any such terms of the federal award, the condition in the NOFO shall be invalid to the extent of the inconsistency. The remainder of that condition and all other conditions set forth in the NOFO shall remain in effect.

Article 32 Patents and Intellectual Property Rights
Recipients are subject to the Bayh-Dole Act, 35 U.S.C. § 200 et seq. and applicable regulations governing inventions and patents, including the regulations issued by the Department of Commerce at 37 C.F.R. Part 401 (Rights to Inventions Made by Nonprofit Organizations and Small Business Firms under Government Awards, Contracts, and Cooperative Agreements) and the standard patent rights clause set forth at 37 C.F.R. § 401.14.

Article 33 Presidential Executive Orders
Recipients must comply with the requirements of Presidential Executive Orders related to grants (also known as federal assistance and financial assistance), the full text of which are incorporated by reference.

Article 34 Procurement of Recovered Materials
States, political subdivisions of states, and their contractors must comply with Section 6002 of the Solid Waste Disposal Act, Pub. L. No. 89-272 (1965) (codified as amended by the Resource Conservation and Recovery Act at 42 U.S.C. § 6962) and 2 C.F.R. § 200.323. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. Part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition.

Article 35 Rehabilitation Act of 1973
Recipients must comply with the requirements of Section 504 of the Rehabilitation Act of 1973, Pub. L. No. 93-112 (codified as amended at 29 U.S.C. § 794), which provides that no otherwise qualified handicapped individuals in the United States will, solely by reason of the handicap, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance.

Article 36 Reporting Recipient Integrity and Performance Matters If the total value of any currently active grants, cooperative agreements, and procurement contracts from all federal awarding agencies exceeds $10,000,000 for any period of time during the period of performance of the federal award, then the recipient must comply with the requirements set forth in the government-wide federal award term and condition for Recipient Integrity and Performance Matters is in 2 C.F.R. Part 200, Appendix XII, the full text of which is incorporated by reference.

Article 37 Reporting Subawards and Executive Compensation For federal awards that total or exceed $30,000, recipients are required to comply with the requirements set forth in the government-wide federal award term and condition on Reporting Subawards and Executive Compensation set forth at 2 C.F.R. Part 170, Appendix A, the full text of which is incorporated by reference.

Article 38 Required Use of American Iron, Steel, Manufactured Products, and Construction Materials
(1) Recipients of a federal award from a financial assistance program that provides funding for infrastructure are hereby notified that none of the funds provided under this federal award may be used for a project for infrastructure unless: (a) all iron and steel used in the project are produced in the United States—this means all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States; (b) all manufactured products used in the project are produced in the United States— this means the manufactured product was manufactured in the United States; and the cost of the components of the manufactured product that are mined, produced, or manufactured in the United States is greater than 55 percent of the total cost of all components of the manufactured product, unless another standard for determining the minimum amount of domestic content of the manufactured product has been established under applicable law or regulation; and (c) all construction materials are manufactured in the United States—this means that all manufacturing processes for the construction material occurred in the United States. (2) The Buy America preference only applies to articles, materials, and supplies that are consumed in, incorporated into, or affixed to an infrastructure project. As such, it does not apply to tools, equipment, and supplies, such as temporary scaffolding, brought to the construction site and removed at or before the completion of the infrastructure project. Nor does a Buy America preference apply to equipment and furnishings, such as movable chairs, desks, and portable computer equipment, that are used at or within the finished infrastructure project but are not an integral part of the structure or permanently affixed to the infrastructure project. (3) Waivers When necessary, recipients may apply for, and the agency may grant, a waiver from these requirements. The agency should notify the recipient for information on the process for requesting a waiver from these requirements. (a) When the Federal agency has determined that one of the following exceptions applies, the federal awarding official may waive the application of the domestic content procurement preference in any case in which the agency determines that: (i) applying the domestic content procurement preference would be inconsistent with the public interest; (ii) the types of iron, steel, manufactured products, or construction materials are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality; or (iii) the inclusion of iron, steel, manufactured products, or construction materials produced in the United States will increase the cost of the overall project by more than 25 percent. (b) A request to waive the application of the domestic content procurement preference must be in writing. The agency will provide instructions on the format, contents, and supporting materials required for any waiver request. Waiver requests are subject to public comment periods of no less than 15 days and must be reviewed by the Made in America Office. (c) There may be instances where a federal award qualifies, in whole or in part, for an existing waiver described at “Buy America” Preference in FEMA Financial Assistance Programs for Infrastructure | FEMA.gov. (4) Definitions. The definitions applicable to this term are set forth at 2 C.F.R. § 184.3, the full text of which is incorporated by reference.

Article 39 SAFECOM
Recipients receiving federal awards made under programs that provide emergency communication equipment and its related activities must comply with the SAFECOM Guidance for Emergency Communication Grants, including provisions on technical standards that ensure and enhance interoperable communications. The SAFECOM Guidance is updated annually and can be found at Funding and Sustainment | CISA.

Article 40 Subrecipient Monitoring and Management
Pass-through entities must comply with the requirements for subrecipient monitoring and management as set forth in 2 C.F.R. §§ 200.331-333.

Article 41 System for Award Management and Unique Entity Identifier Requirements
Recipients are required to comply with the requirements set forth in the governmentwide federal award term and condition regarding the System for Award Management and Unique Entity Identifier Requirements in 2 C.F.R. Part 25, Appendix A, the full text of which is incorporated reference.

Article 42 Termination of a Federal Award
(1) By DHS. DHS may terminate a federal award, in whole or in part, for the following reasons: (a) If the recipient fails to comply with the terms and conditions of the federal award; (b) With the consent of the recipient, in which case the parties must agree upon the termination conditions, including the effective date, and in the case of partial termination, the portion to be terminated; or (c) Pursuant to the terms and conditions of the federal award, including, to the extent authorized by law, if the federal award no longer effectuates the program goals or agency priorities. (3) By the Recipient. The recipient may terminate the federal award, in whole or in part, by sending written notification to DHS stating the reasons for such termination, the effective date, and in the case of partial termination, the portion to be terminated. However, if DHS determines that the remaining portion of the federal award will not accomplish the purposes for which the federal award was made, DHS may terminate the federal award in its entirety. (4) Notice.

Either party will provide written notice of intent to terminate for any reason to the other party no less than 30 calendar days prior to the effective date of the termination. (5) Compliance with Closeout Requirements for Terminated Awards. The recipient must continue to comply with closeout requirements in 2 C.F.R. §§ 200.344200.345 after an award is terminated.

Article 43 Terrorist Financing
Recipients must comply with Executive Order 13224 and applicable statutory prohibitions on transactions with, and the provisions of resources and support to, individuals and organizations associated with terrorism. Recipients are legally responsible for ensuring compliance with the Executive Order and laws.

Article 44 Trafficking Victims Protection Act of 2000(TVPA) Recipients must comply with the requirements of the government-wide federal award term and condition which implements Trafficking Victims Protection Act of 2000, Pub. L. No. 106-386, § 106 (codified as amended at 22 U.S.C. § 7104). The federal award term and condition is in 2 C.F.R. § 175.105, the full text of which is incorporated by reference.

Article 45 Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001, Pub. L. 107-56
Recipients must comply with the requirements of Pub. L. 107-56, Section 817 of the USA PATRIOT Act, which amends 18 U.S.C. §§ 175–175c.

Article 46 Use of DHS Seal, Logo and Flags
Recipients must obtain written permission from DHS prior to using the DHS seals, logos, crests, or reproductions of flags, or likenesses of DHS agency officials. This includes use of DHS component (e.g., FEMA, CISA, etc.) seals, logos, crests, or reproductions of flags, or likenesses of component officials.

Article 47 Whistleblower Protection Act
Recipients must comply with the statutory requirements for whistleblower protections in 10 U.S.C § 470141 U.S.C. § 4712.

Article 48 Environmental Planning and Historic Preservation (EHP) Review DHS/FEMA funded activities that could have an impact on the environment are subject to the FEMA EHP review process. This review does not address all federal, state, and local requirements. Acceptance of federal funding requires the recipient to comply with all federal, state, and local laws. DHS/FEMA is required to consider the potential impacts to natural and cultural resources of all projects funded by DHS/FEMA grant funds, through its EHP review process, as mandated by: the National Environmental Policy Act; Endangered Species Act; National Historic Preservation Act of 1966, as amended; Clean Water Act; Clean Air Act; National Flood Insurance Program regulations; and any other applicable laws, regulations and executive orders. General guidance for FEMA’s EHP process is available on the DHS/FEMA Website. Specific applicant guidance on how to submit information for EHP review depends on the individual grant program. Applicants should contact their grant Program Officer to be put into contact with EHP staff responsible for assisting their specific grant program. The FEMA EHP review process must be completed before funds are released to carry out the proposed project, otherwise, DHS/FEMA may not be able to fund the project due to noncompliance with EHP laws, executive orders, regulations, and policies. DHS/FEMA may also need to perform a project closeout review to ensure the applicant complied with all required EHP conditions identified in the initial review. If ground disturbing activities occur during construction, the applicant will monitor the ground disturbance, and if any potential archaeological resources are discovered, the applicant will immediately cease work in that area and notify the pass-through entity, if applicable, and DHS/FEMA. EO 11988, Floodplain Management, and EO 11990, Protection of Wetlands, require that all federal actions in or affecting the floodplain or wetlands be reviewed for opportunities to relocate, and be evaluated for social, economic, historical, environmental, legal, and safety considerations. FEMA’s regulations at 44 C.F.R. Part 9 implement the EOs and require an eight-step review process if a proposed action is in a floodplain or wetland or has the potential to affect or be affected by a floodplain or wetland. The regulation also requires that the federal agency provide public notice of the proposed action at the earliest possible time to provide the opportunity for public involvement in the decision-making process (44 C.F.R. § 9.8). Where there is no opportunity to relocate the federal action, FEMA is required to undertake a detailed review to determine what measures can be taken to minimize future damages to the floodplain or wetland.

Article 49 Applicability of DHS Standard Terms and Conditions to Tribal Nations The DHS Standard Terms and Conditions are a restatement of general requirements imposed upon recipients and flow down to sub-recipients as a matter of law, regulation, or executive order. If the requirement does not apply to Tribal Nations, or there is a federal law or regulation exempting its application to Tribal Nations, then the acceptance by Tribal Nations, or acquiescence to DHS Standard Terms and Conditions does not change or alter its inapplicability to a Tribal Nation. The execution of grant documents is not intended to change, alter, amend, or impose additional liability or responsibility upon the Tribal Nations where it does not already exist.

Article 50 Acceptance of Post Award Changes
In the event FEMA determines that an error in the award package has been made, or if an administrative change must be made to the award package, recipients will be notified of the change in writing. Once the notification has been made, any subsequent requests for funds will indicate recipient acceptance of the changes to the award. Please email FEMA Grant Management Operations at: [email protected] for any questions.

Article 51 Disposition of Equipment Acquired Under the Federal Award When original or replacement equipment acquired under this award is no longer needed for the original project or program or for other activities currently or previously supported by a federal awarding agency, the non-state recipient or subrecipient (including subrecipients of a State or Tribal Nation), must request instructions from FEMA to make proper disposition of the equipment pursuant to 2 C.F.R. section 200.313(e). State recipients must follow the disposition requirements in accordance with State laws and procedures. 2 C.F.R. section 200.313(b). Tribal Nations must follow the disposition requirements in accordance with Tribal laws and procedures noted in 2 C.F.R. section 200.313(b); and if such laws and procedures do not exist, then Tribal Nations must follow the disposition instructions in 2 C.F.R. section 200.313(e).

Article 52 Prior Approval for Modification of Approved Budget Before making any change to the FEMA approved budget for this award, a written request must be submitted and approved by FEMA as required by 2 C.F.R. section 200.308. For purposes of non-construction projects, FEMA is utilizing its discretion to impose an additional restriction under 2 C.F.R. section 200.308(i) regarding the transfer of funds among direct cost categories, programs, functions, or activities. For awards with an approved budget where the federal share is greater than the simplified acquisition threshold (currently $250,000) and where the cumulative amount of such transfers exceeds or is expected to exceed ten percent (10%) of the total budget FEMA last approved, transferring funds among direct cost categories, programs, functions, or activities is unallowable without prior written approval from FEMA. For purposes of awards that support both construction and non-construction work, 2 C.F.R. section 200.308((f)(9) requires the recipient to obtain prior written approval from FEMA before making any fund or budget transfers between the two types of work. Any deviations from a FEMA approved budget must be reported in the first Federal Financial Report (SF-425) that is submitted following any budget deviation, regardless of whether the budget deviation requires prior written approval.

Article 53 Indirect Cost Rate
2 C.F.R. section 200.211(b)(16) requires the terms of the award to include the indirect cost rate for the federal award. If applicable, the indirect cost rate for the award is stated in the budget documents or other materials approved by FEMA and included in the award file.

Article 54 Build America, Buy America Act (BABAA) Required Contract Provision & Self-Certification
In addition to the DHS Standard Terms & Conditions regarding Required Use of American Iron, Steel, Manufactured Products, and Construction Materials, recipients and subrecipients of FEMA financial assistance for programs that are subject to BABAA must include a Buy America preference contract provision as noted in 2 C.F.R. section 184.4 and a self-certification as required by the FEMA Buy America Preference in FEMA Financial Assistance Programs for Infrastructure (FEMA Interim Policy #207-22-0001). This requirement applies to all subawards, contracts, and purchase orders for work performed, or products supplied under the FEMA award subject to BABAA.

Article 55 Award Performance Goals
FEMA will measure the recipient’s performance of the grant by comparing the number of items requested in its application, the numbers acquired (ordered, paid, and received) within the period of performance. In order to measure performance, FEMA may request information throughout the period of performance. In its final performance report submitted at closeout, the recipient is required to report on the recipients compliance with the applicable industry, local, state and national standards described in the NOFO.

Article 56 EHP Compliance Review Required
EHP Compliance Review Required Under the Modification to a Facility, Equipment, or a component in the Wellness and Fitness Activity, this award includes work, such as ground disturbance, that triggers an EHP compliance review. The recipient is prohibited from committing, obligating, expending, or drawing down FY24 Assistance to Firefighters Grant funds in support of the Modification to Facility, Equipment or a component in the Wellness and Fitness Activity that requires the EHP compliance review, with a limited exception for any approved costs associated with the preparation, conducting, and completion of required EHP reviews. See the FY24 Assistance to Firefighters Grant NOFO for further information on EHP requirements and other applicable program guidance, including FEMA Information Bulletin No. 404. The recipient is required to obtain the required DHS/FEMA EHP compliance approval for this project pursuant to the FY24 Assistance to Firefighters Grant NOFO prior to commencing work for this project. DHS/FEMA will notify you when the EHP compliance review is complete, and work may begin. If the recipient requests a payment for one of the activities requiring EHP compliance review, FEMA may not make a payment for that work while the EHP compliance review is still pending. If FEMA discovers that work has been commenced under one of those activities prematurely, FEMA may disallow costs incurred prior to completion of the EHP compliance review and the receipt of DHS/FEMA approval to begin the work. Please contact your DHS/FEMA AFG Help Desk at 1-866-274-0960 or [email protected] to receive specific guidance regarding EHP compliance. If you have questions about this term and condition or believe it was placed in error, please contact the relevant Preparedness Officer.

Article 57 Non-Applicability of Specific Agreement Articles Notwithstanding their inclusion in this award package, the following Agreement Articles do not apply to this grant award:

1. Communication and Cooperation with the Department of Homeland Security and Immigration Officials.

2. Paragraph (2)(a)(iii) of Anti-Discrimination.

Article 58 Payment Information (Updated)
Recipients will submit payment requests in FEMA GO for FY25 awards under this program.

Instructions to Grant Recipients Pursuing Payments
FEMA reviews all grant payments and obligations to ensure allowability in accordance with 2 C.F.R. § 200.305. These measures ensure funds are disbursed appropriately while continuing to support and prioritize communities who rely on FEMA for assistance. Once a recipient submits a payment request in FEMA GO, FEMA will review the request. If FEMA approves a payment, it will process the payment through FEMA GO and the payment will be delivered pursuant to the recipients SAM.gov financial information. If FEMA disapproves a payment, FEMA will inform the recipient.

Processing and Payment Timeline
FEMA must comply with regulations governing payments to grant recipients.

See 2 C.F.R. § 200.305. For grant recipients other than States, 2 C.F.R. § 200.305(b)(3) stipulates that FEMA is to make payments on a reimbursement basis within 30 days after receipt of the payment request, unless FEMA reasonably believes the request to be improper. For state recipients, 2 C.F.R. § 200.305(a) instructs that federal grant payments are governed by TreasuryState Cash Management Improvement Act (CMIA) agreements ("TreasuryState agreement") and default procedures codified at 31 C.F.R. part 205 and Treasury Financial Manual (TFM) 4A-2000, "Overall Disbursing Rules for All Federal Agencies." See 2 C.F.R. § 200.305(a).

Treasury-State agreements generally apply to "major federal assistance programs" that are governed by 31 C.F.R. part 205, subpart A and are identified in the Treasury-State agreement. 31 C.F.R. §§ 205.2, 205.6. Where a federal assistance (grant) program is not governed by subpart A, payment and funds transfers from FEMA to the state are subject to 31 C.F.R. part 205, subpart B. Subpart B requires FEMA to "limit a funds transfer to a state to the minimum amounts needed by the state and must time the disbursement to be in accord with the actual, immediate cash requirements of the state in carrying out a federal assistance program or project. The timing and amount of funds transfers must be as close as is administratively feasible to a state's actual cash outlay for direct program costs and the proportionate share of any allowable indirect costs." 31 C.F.R. § 205.33(a). Nearly all FEMA grants are not "major federal assistance programs." As a result, payments to states for those grants are subject to the "default" rules of 31 C.F.R. part 205, subpart B.

If additional information is needed, a request for information will be issued by FEMA to the recipient; recipients are strongly encouraged to respond to any additional FEMA request for information inquiries within three business days. If an adequate response is not received, the request may be denied, and the entity may need to submit a new reimbursement request; this will re-start the 30-day timeline.

Submission Process
All non-disaster grant program reimbursement requests must be reviewed and approved by FEMA prior to drawdowns.

For all non-disaster reimbursement requests (regardless of system), please ensure submittal of the following information:

1. Grant ID / Award Number

2. Total amount requested for drawdown

3. Purpose of drawdown and timeframe covered (must be within the award performance period)

4. Subrecipient Funding Details (if applicable).
• Is funding provided directly or indirectly to a subrecipient? • If no, include statement "This grant funding is not being directed to a subrecipient."
• If yes, provide the following details:
• The name, mission statement, and purpose of each subrecipient receiving funds, along with the amount allocated and the specific role or activity being reimbursed.
• Whether the subrecipient’s work or mission involves supporting aliens, regardless of whether FEMA funds support such activities. • Whether the payment request includes an activity involving support to aliens? • Whether the subrecipient has any diversity, equity, and inclusion practices.

5. Supporting documentation to demonstrate that expenses are allowable, allocable, reasonable, and necessary under 2 C.F.R. Part 200 and in compliance with the grant’s NOFO, award terms, and applicable federal regulations.

Article 59 Termination of the Federal Award (Updated)

1. Paragraph C.XL of the FY 2025 DHS Standard Terms and Conditions, v.3 sets forth a term and condition entitled “Termination of a Federal Award.” The termination provision condition listed below applies to the grant award and the term and condition in Paragraph C.XL of the FY 2025 DHS Standard Terms and Conditions, v.3 does not.

2. Termination of the Federal Award by FEMA
FEMA may terminate the federal award in whole or in part for one of the following reasons identified in 2 C.F.R. § 200.340:
a. If the recipient or subrecipient fails to comply with the terms and conditions of the federal award.
b. With the consent of the recipient, in which case FEMA and the recipient must agree upon the termination conditions. These conditions include the effective date and, in the case of partial termination, the portion to be terminated.
c. If the federal award no longer effectuates the program goals or agency priorities. Under this provision, FEMA may terminate the award for these purposes if any of the following reasons apply:
i. If DHS/FEMA, in its sole discretion, determines that a specific award objective is ineffective at achieving program goals as described in this NOFO; ii. If DHS/FEMA, in its sole discretion, determines that an objective of the award as described in this NOFO will be ineffective at achieving program goals or agency priorities;
iii. If DHS/FEMA, in its sole discretion, determines that the design of the grant program is flawed relative to program goals or agency priorities; iv. If DHS/FEMA, in its sole discretion, determines that the grant program is not aligned to either the DHS Strategic Plan, the FEMA Strategic Plan, or successor policies or documents;
v. If DHS/FEMA, in its sole discretion, changes or re-evaluates the goals or priorities of the grant program and determines that the award will be ineffective at achieving the updated program goals or agency priorities; or vi. For other reasons based on program goals or agency priorities described in the termination notice provided to the recipient pursuant to 2 C.F.R. § 200.341. vii. If the awardee falls out of compliance with the Agency’s statutory or regulatory authority, award terms and conditions, or other applicable laws.

3. Termination of a Subaward by the Pass-Through Entity The pass-through entity may terminate a subaward in whole or in part for one of the following reasons identified in 2 C.F.R. § 200.340:
a. If the subrecipient fails to comply with the terms and conditions of the federal award.
b. With the consent of the subrecipient, in which case the pass-through entity and the subrecipient must agree upon the termination conditions. These conditions include the effective date and, in the case of partial termination, the portion to be terminated.
c. If the pass-through entity’s award has been terminated, the pass-through recipient will terminate its subawards.

4. Termination by the Recipient or Subrecipient
The recipient or subrecipient may terminate the federal award in whole or in part for the following reasons identified in 2 C.F.R. § 200.340: Upon sending FEMA or the pass-through entity a written notification of the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. However, if FEMA or the pass-through entity determines that the remaining portion of the federal award will not accomplish the purposes for which the federal award was made, FEMA or the passthrough entity may terminate the federal award in its entirety.

5. Impacts of Termination
a. When FEMA terminates the federal award prior to the end of the period of performance due to the recipient’s material failure to comply with the terms and conditions of the federal award, FEMA will report the termination in SAM.gov in the manner described at 2 C.F.R. § 200.340(c).
b. When the federal award is terminated in part or its entirety, FEMA or the pass-through entity and the recipient or subrecipient remain responsible for compliance with the requirements in 2 C.F.R. §§ 200.344 and 200.345.

6. Notification Requirements
FEMA or the pass-through entity must provide written notice of the termination in a manner consistent with 2 C.F.R. § 200.341. The federal award will be terminated on the date of the notification unless stated otherwise in the notification.

7. Opportunities to Object and Appeals
Where applicable, when FEMA terminates the federal award, the written notification of termination will provide the opportunity, and describe the process, to object and provide information challenging the action, pursuant to 2 C.F.R. § 200.342.

8. Effects of Suspension and Termination
The allowability of costs to the recipient or subrecipient resulting from financial obligations incurred by the recipient or subrecipient during a suspension or after the termination of a federal award are subject to 2 C.F.R. § 200.343.

Article 60 Non-Applicability of Specific Agreement Articles Notwithstanding their inclusion in this award package, the following Agreement Article does not apply to this grant award:

Termination of a Federal Award
The intent of this provision is to clarify that Paragraph C.XL (Termination of a Federal Award) of the FY 2025 DHS Standard Terms and Conditions does not apply to this award. Instead, the Agreement Article titled “Termination of the Federal Award”, or “Termination of the Federal Award (Updated)” applies to this grant award.

Obligating document

1. Agreement
No.

EMW-2024-FG01700

2. Amendment
No.

N/A

3. Recipient
No.
946000412

4. Type of
Action
AWARD

5. Control No.

WX02143N2025T

6. Recipient Name and
Address

CITY OF SALINAS
200 LINCOLN AVE
SALINAS, CA 93901

7. Issuing FEMA Office and
Address
Grant Programs Directorate
500 C Street, S.W.

Washington DC, 20528-7000
1-866-927-5646

8. Payment Office and
Address
FEMA, Financial Services
Branch
500 C Street, S.W., Room
723
Washington DC, 20742

9. Name of Recipient
Project Officer
Estefania Vargas
9a. Phone
No.
831-
7587260

10. Name of FEMA Project
Coordinator
Assistance to Firefighters
Grant Program
10a. Phone
No.
1-866-274-
0960

11. Effective Date of
This Action
09/23/2025

12. Method of
Payment

OTHER - FEMA
GO

13. Assistance
Arrangement

COST SHARING

14. Performance
Period
09/30/2025 to
09/29/2027
Budget Period
09/30/2025 to
09/29/2027

15. Description of Action a. (Indicate funding data for awards or financial changes)
Program
Name
Abbreviation
Assistance
Listing No.

Accounting
Data
(ACCS
Code)
Prior
Total
Award
Amount
Awarded
This Action
+ or (-)
Current
Total
Award
Cumulative
Non-Federal
Commitment
FG 97.044
2025-FFGB01 -
P410-xxxx4101-D
$0.00 $188,260.24 $188,260.24 $18,826.02
Totals $0.00 $188,260.24 $188,260.24 $18,826.02
b. To describe changes other than funding data or financial changes, attach schedule and check here:

N/A

16.FOR NON-DISASTER PROGRAMS: RECIPIENT IS REQUIRED TO SIGN AND RETURN THREE (3) COPIES OF THIS DOCUMENT TO FEMA (See Block 7 for address)
This field is not applicable for digitally signed grant agreements

17. RECIPIENT SIGNATORY OFFICIAL (Name and Title)
Estefania Vargas
DATE
10/01/2025

18. FEMA SIGNATORY OFFICIAL (Name and Title)
Stacey Street, Deputy Assistant Administrator Grant Programs Directorate
DATE
09/23/2025

495-A Edison Ct. DIR# 1000011166 Phone: 800-300-2945
Fairfield, CA 94534 CA Contractors Lic. 664135 Email: [email protected] Proposal submitted to: Phone Date 2/23/2026
Street Application Engineer
City, State and Zip Code Job Location
Customer Representative Title: Cell:

SCOPE OF WORK: Plymovent Diesel Exhaust Removal System.

Three (3) MRP-70, Drive-Thru Rail Systems, 66' Rail, 2 Hoses. $ 43,845.00 One (1) TEV-585, 7.5HP, 208/230V, 1 Phase Fan, TEFC Motor. $ 6,039.00 One (1) OS-3, 7.5HP, 208/230V, 1 Phase Control Panel. $ 2,598.00 Lot Wireless Sensor System and Installation Materials. $ 5,806.00 Complete turn-key installation.

Materials: $ 58,288.00
(Est.) Shipping & Handling: $ 4,000.00
Lifts: $ 2,840.00
Notes: 9.25% Sales Tax: $ 6,024.34
Terms and Conditions are attached. (6) Tailpipes: $ 1,260.00 Sales tax based on current rates. Actual rates in effect at billing. Electrical: $ 4,200.00 Freight will be pre-paid and freight bills will accompany invoice. Labor: $ 46,388.00 Electrical cost based on breaker panel being sufficient. TOTAL: $123,000.34 Delivery of system will be within 12 weeks of proposal acceptance.

Payment to be made as follows:

Chris Koss
45 days.

SIGNATURE:

216 W. Alisal St
831-758-7260
Chris Koss
Thank you for allowing Air Exchange, Inc. the opportunity to provide the following quotation to you.

PROPOSAL
ACCEPTANCE OF PROPOSAL and TERMS AND
CONDITIONS. (Pages 1 and 2, inclusively.) The above
prices, specifications and Terms and Conditions are
satisfactory and are hereby accepted. You are authorized to do the work as specified. By signing where indicated, you, as agent for the organization proposed, hereby authorized Air Exchange, Inc. to perform the work as specified on Page 1 of 2 of this proposal and agree and accept the Terms and
Conditions (Page 2 of 2) of this proposal. Payment will be made as outlined above.

DATE OF
ACCEPTANCE:

Salinas #1
AIR EXCHANGE, INC.

The Clean Air Specialists
Equipment due net 30 after delivery, balance due net 30 after completion.

Estefania Vargas
Main Bays
All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado, and other necessary insurance. Our workers are fully covered by Workman's compensation Insurance.

Salinas, CA 93901
Authorized Signature:

Note: This proposal may be with-drawn by
us if not accepted within
495-A Edison Ct. DIR# 1000011166 Phone: 800-300-2945 Page 2 of 2 Fairfield, CA 94534 CA Contractors Lic. 664135 Email: [email protected] PROJECT PROPOSED:

EXCLUSIONS TO THE PROJECT PROPOSED:

TERMS AND CONDITIONS
AIR EXCHANGE, INC.

Salinas #1 Main Bays - Plymovent System

5. Freight is not included, unless indicated on Page 1 of 2 of the proposal. Please provide preferred carrier. If you authorize, Air Exchange, Inc. will pay for freight charges and invoice you, but you must include this provision in your purchase order to Air Exchange, Inc.

4. Payments terms are noted on the proposal. Should you require different terms than noted, an addendum to this contract will need to by fully executed before revised terms will be accepted.

1. Permits and fees of any kind are not included in this proposal; including but not limited to, any pertinent load calculations; technical drawings, submittals, shop drawings and permit drawings of any kind. Should any of these items be required, a separate quote will be required.

2. Outside services, not limited to but including, concrete work, exterior penetrations, fork or scissor lift rentals, etc. are not included, unless indicated on Page 1 of 2 of the proposal.

3. All work to be performed during normal business hours (M-F, 7:30 a.m. to 4:00 p.m.). Work done outside of normal business hours will be subject to additional charges (I.e., time and one-half, double time, etc.) unless indicated on Page 1 of 2 of the proposal.

495-A Edison Ct. DIR# 1000011166 Phone: 800-300-2945
Fairfield, CA 94534 CA Contractors Lic. 664135 Email: [email protected] Proposal submitted to: Phone Date 2/23/2026
Street Application Engineer
City, State and Zip Code Job Location
Customer Representative Title: Cell:

SCOPE OF WORK: Plymovent Diesel Exhaust Removal System.

System: Remove existing Fan, Hoses, Controls and Ducting. Install Plymovent System.

Two (2) MRP-35-1-MAG, MRP Rail Back-In System, 33' Rail, 1 Hose. $ 14,456.00 One (1) TEV-559, 5HP, 208/230V, 1 Phase Fan, TEFC Motor. $ 4,834.00 One (1) OS-3, 5HP, 208/230V, 1 Phase Control Panel. $ 2,598.00 Lot Ducting, Supports, Wireless Sensor System and Installation Materials. $ 2,810.00 Complete turn-key installation.

Materials: $ 24,698.00
(Est.) Shipping & Handling: $ 2,100.00
Lifts: $ 1,640.00
Notes: 9.25% Sales Tax: $ 2,630.52
Terms and Conditions are attached. (2) Tailpipes: $ 420.00 Sales tax based on current rates. Actual rates in effect at billing. Electrical: $ 4,200.00 Freight will be pre-paid and freight bills will accompany invoice. Labor: $ 16,148.00 Electrical cost based on breaker panel being sufficient. TOTAL: $ 51,836.52 Delivery of system will be within 12 weeks of proposal acceptance.

Payment to be made as follows:

Chris Koss
45 days.

SIGNATURE:

216 W. Alisal St.
831-758-7260
Chris Koss
Thank you for allowing Air Exchange, Inc. the opportunity to provide the following quotation to you.

PROPOSAL
ACCEPTANCE OF PROPOSAL and TERMS AND
CONDITIONS. (Pages 1 and 2, inclusively.) The above
prices, specifications and Terms and Conditions are
satisfactory and are hereby accepted. You are authorized to do the work as specified. By signing where indicated, you, as agent for the organization proposed, hereby authorized Air Exchange, Inc. to perform the work as specified on Page 1 of 2 of this proposal and agree and accept the Terms and
Conditions (Page 2 of 2) of this proposal. Payment will be made as outlined above.

DATE OF
ACCEPTANCE:

Salinas #1
AIR EXCHANGE, INC.

The Clean Air Specialists
Equipment due net 30 after delivery, balance due net 30 after completion.

Estefania Vargas
Right Bays
All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado, and other necessary insurance. Our workers are fully covered by Workman's compensation Insurance.

Salinas, CA 93901
Authorized Signature:

Note: This proposal may be with-drawn by
us if not accepted within
495-A Edison Ct. DIR# 1000011166 Phone: 800-300-2945 Page 2 of 2 Fairfield, CA 94534 CA Contractors Lic. 664135 Email: [email protected] PROJECT PROPOSED:

EXCLUSIONS TO THE PROJECT PROPOSED:

TERMS AND CONDITIONS
AIR EXCHANGE, INC.

Salinas #1 Right Bays - Plymovent System

5. Freight is not included, unless indicated on Page 1 of 2 of the proposal. Please provide preferred carrier. If you authorize, Air Exchange, Inc. will pay for freight charges and invoice you, but you must include this provision in your purchase order to Air Exchange, Inc.

4. Payments terms are noted on the proposal. Should you require different terms than noted, an addendum to this contract will need to by fully executed before revised terms will be accepted.

1. Permits and fees of any kind are not included in this proposal; including but not limited to, any pertinent load calculations; technical drawings, submittals, shop drawings and permit drawings of any kind. Should any of these items be required, a separate quote will be required.

2. Outside services, not limited to but including, concrete work, exterior penetrations, fork or scissor lift rentals, etc. are not included, unless indicated on Page 1 of 2 of the proposal.

3. All work to be performed during normal business hours (M-F, 7:30 a.m. to 4:00 p.m.). Work done outside of normal business hours will be subject to additional charges (I.e., time and one-half, double time, etc.) unless indicated on Page 1 of 2 of the proposal. , I I
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DEPARTMENT OF PUBLIC WORKS

CITY OF SALINAS

ENGINEERING DESIGN DIVISION
DIETERICH-POST REORDER NO.129308
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DESIGNED BY
.VIRGIL AMPO

DRAWN BY
.VIRGIL AMPO

CHECKED BY
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FIRE STATION NO. 2

CITY OF SALINAS

EXHAUST EXTRACTOR
FILE NO.
7492

495-A Edison Ct. DIR# 1000011166 Phone: 800-300-2945
Fairfield, CA 94534 CA Contractors Lic. 664135 Email: [email protected] Proposal submitted to: Phone Date 3/4/2026
Street Application Engineer
City, State and Zip Code Job Location
Customer Representative Title: Cell:

SCOPE OF WORK: Plymovent Diesel Exhaust Removal System.

Replace Nederman Hoses with Plymovent Hose Assemblies.

Two (2) 4" x 20' Hose Assemblies. $ 8,286.00
Lot Installation Materials. $ 284.00
Materials: $ 8,570.00
(Est.) Shipping & Handling: $ 500.00
Lifts: N/A
Notes: 9.25% Sales Tax: $ 838.98
Terms and Conditions are attached. (2) Tailpipes: $ 420.00 Sales tax based on current rates. Actual rates in effect at billing. Electrical: N/A Freight will be pre-paid and freight bills will accompany invoice. Labor: $ 1,586.00 Existing Control Panel/Auto Start System to remain in place. TOTAL: $ 11,914.98 Delivery of system will be within 12 weeks of proposal acceptance.

Payment to be made as follows:

Chris Koss
45 days.

SIGNATURE:
10 W. Laurel Dr.
831-758-7260
Chris Koss
Thank you for allowing Air Exchange, Inc. the opportunity to provide the following quotation to you.

PROPOSAL
ACCEPTANCE OF PROPOSAL and TERMS AND
CONDITIONS. (Pages 1 and 2, inclusively.) The above
prices, specifications and Terms and Conditions are
satisfactory and are hereby accepted. You are authorized to do the work as specified. By signing where indicated, you, as agent for the organization proposed, hereby authorized Air Exchange, Inc. to perform the work as specified on Page 1 of 2 of this proposal and agree and accept the Terms and
Conditions (Page 2 of 2) of this proposal. Payment will be made as outlined above.

DATE OF
ACCEPTANCE:

Salinas 2
AIR EXCHANGE, INC.

The Clean Air Specialists
Equipment due net 30 after delivery, balance due net 30 after completion.

Estefania Vargas
Same
All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado, and other necessary insurance. Our workers are fully covered by Workman's compensation Insurance.

Salinas, CA 93907
Authorized Signature:

Note: This proposal may be with-drawn by
us if not accepted within
495-A Edison Ct. DIR# 1000011166 Phone: 800-300-2945 Page 2 of 2 Fairfield, CA 94534 CA Contractors Lic. 664135 Email: [email protected] PROJECT PROPOSED:

EXCLUSIONS TO THE PROJECT PROPOSED:

TERMS AND CONDITIONS
AIR EXCHANGE, INC.

Salinas 2 - Plymovent System

5. Freight is not included, unless indicated on Page 1 of 2 of the proposal. Please provide preferred carrier. If you authorize, Air Exchange, Inc. will pay for freight charges and invoice you, but you must include this provision in your purchase order to Air Exchange, Inc.

4. Payments terms are noted on the proposal. Should you require different terms than noted, an addendum to this contract will need to by fully executed before revised terms will be accepted.

1. Permits and fees of any kind are not included in this proposal; including but not limited to, any pertinent load calculations; technical drawings, submittals, shop drawings and permit drawings of any kind. Should any of these items be required, a separate quote will be required.

2. Outside services, not limited to but including, concrete work, exterior penetrations, fork or scissor lift rentals, etc. are not included, unless indicated on Page 1 of 2 of the proposal.

3. All work to be performed during normal business hours (M-F, 7:30 a.m. to 4:00 p.m.). Work done outside of normal business hours will be subject to additional charges (I.e., time and one-half, double time, etc.) unless indicated on Page 1 of 2 of the proposal.

495-A Edison Ct. DIR# 1000011166 Phone: 800-300-2945
Fairfield, CA 94534 CA Contractors Lic. 664135 Email: [email protected] Proposal submitted to: Phone Date 3/4/2026
Street Application Engineer
City, State and Zip Code Job Location
Customer Representative Title: Cell:

SCOPE OF WORK: Plymovent Diesel Exhaust Removal System.

Replace Nederman Hoses with Plymovent Hose Assemblies.

Two (2) 4" x 20' Hose Assemblies. $ 8,097.00
Materials: $ 8,097.00
(Est.) Shipping & Handling: $ 500.00
Lifts: N/A
Notes: 9.25% Sales Tax: $ 795.22
Terms and Conditions are attached. (2) Tailpipes: $ 420.00 Sales tax based on current rates. Actual rates in effect at billing. Electrical: N/A Freight will be pre-paid and freight bills will accompany invoice. Labor: $ 1,586.00 Existing Control Panel/Auto Start System to remain in place. TOTAL: $ 11,398.22 Delivery of system will be within 12 weeks of proposal acceptance.

Payment to be made as follows:

Chris Koss
45 days.

SIGNATURE:

827 Abbott Pl.
831-758-7260
Chris Koss
Thank you for allowing Air Exchange, Inc. the opportunity to provide the following quotation to you.

PROPOSAL
ACCEPTANCE OF PROPOSAL and TERMS AND
CONDITIONS. (Pages 1 and 2, inclusively.) The above
prices, specifications and Terms and Conditions are
satisfactory and are hereby accepted. You are authorized to do the work as specified. By signing where indicated, you, as agent for the organization proposed, hereby authorized Air Exchange, Inc. to perform the work as specified on Page 1 of 2 of this proposal and agree and accept the Terms and
Conditions (Page 2 of 2) of this proposal. Payment will be made as outlined above.

DATE OF
ACCEPTANCE:

Salinas 3
AIR EXCHANGE, INC.

The Clean Air Specialists
Equipment due net 30 after delivery, balance due net 30 after completion.

Estefania Vargas
Same
All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado, and other necessary insurance. Our workers are fully covered by Workman's compensation Insurance.

Salinas, CA 93901
Authorized Signature:

Note: This proposal may be with-drawn by
us if not accepted within
495-A Edison Ct. DIR# 1000011166 Phone: 800-300-2945 Page 2 of 2 Fairfield, CA 94534 CA Contractors Lic. 664135 Email: [email protected] PROJECT PROPOSED:

EXCLUSIONS TO THE PROJECT PROPOSED:

TERMS AND CONDITIONS
AIR EXCHANGE, INC.

Salinas 3 - Plymovent System

5. Freight is not included, unless indicated on Page 1 of 2 of the proposal. Please provide preferred carrier. If you authorize, Air Exchange, Inc. will pay for freight charges and invoice you, but you must include this provision in your purchase order to Air Exchange, Inc.

4. Payments terms are noted on the proposal. Should you require different terms than noted, an addendum to this contract will need to by fully executed before revised terms will be accepted.

1. Permits and fees of any kind are not included in this proposal; including but not limited to, any pertinent load calculations; technical drawings, submittals, shop drawings and permit drawings of any kind. Should any of these items be required, a separate quote will be required.

2. Outside services, not limited to but including, concrete work, exterior penetrations, fork or scissor lift rentals, etc. are not included, unless indicated on Page 1 of 2 of the proposal.

3. All work to be performed during normal business hours (M-F, 7:30 a.m. to 4:00 p.m.). Work done outside of normal business hours will be subject to additional charges (I.e., time and one-half, double time, etc.) unless indicated on Page 1 of 2 of the proposal.

495-A Edison Ct. DIR# 1000011166 Phone: 800-300-2945
Fairfield, CA 94534 CA Contractors Lic. 664135 Email: [email protected] Proposal submitted to: Phone Date 3/4/2026
Street Application Engineer
City, State and Zip Code Job Location
Customer Representative Title: Cell:

SCOPE OF WORK: Plymovent Diesel Exhaust Removal System.

Replace Nederman Hoses with Plymovent Hose Assemblies.

Four (4) 4" x 20' Hose Assemblies. $ 16,973.00
Lot Installation Materials. $ 313.00
Materials: $ 17,286.00
(Est.) Shipping & Handling: $ 700.00
Lifts: $ 627.00
Notes: 9.25% Sales Tax: $ 1,721.70
Terms and Conditions are attached. (4) Tailpipes: $ 840.00 Sales tax based on current rates. Actual rates in effect at billing. Electrical: N/A Freight will be pre-paid and freight bills will accompany invoice. Labor: $ 2,606.00 Existing Control Panel/Auto Start System to remain in place. TOTAL: $ 23,780.70 Delivery of system will be within 12 weeks of proposal acceptance.

Payment to be made as follows:

Chris Koss
45 days.

SIGNATURE:

1400 Rider Ave.
831-758-7260
Chris Koss
Thank you for allowing Air Exchange, Inc. the opportunity to provide the following quotation to you.

PROPOSAL
ACCEPTANCE OF PROPOSAL and TERMS AND
CONDITIONS. (Pages 1 and 2, inclusively.) The above
prices, specifications and Terms and Conditions are
satisfactory and are hereby accepted. You are authorized to do the work as specified. By signing where indicated, you, as agent for the organization proposed, hereby authorized Air Exchange, Inc. to perform the work as specified on Page 1 of 2 of this proposal and agree and accept the Terms and
Conditions (Page 2 of 2) of this proposal. Payment will be made as outlined above.

DATE OF
ACCEPTANCE:

Salinas 5
AIR EXCHANGE, INC.

The Clean Air Specialists
Equipment due net 30 after delivery, balance due net 30 after completion.

Estefania Vargas
Same
All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado, and other necessary insurance. Our workers are fully covered by Workman's compensation Insurance.

Salinas, CA 93905
Authorized Signature:

Note: This proposal may be with-drawn by
us if not accepted within
495-A Edison Ct. DIR# 1000011166 Phone: 800-300-2945 Page 2 of 2 Fairfield, CA 94534 CA Contractors Lic. 664135 Email: [email protected] PROJECT PROPOSED:

EXCLUSIONS TO THE PROJECT PROPOSED:

TERMS AND CONDITIONS
AIR EXCHANGE, INC.

Salinas 5 - Plymovent System

5. Freight is not included, unless indicated on Page 1 of 2 of the proposal. Please provide preferred carrier. If you authorize, Air Exchange, Inc. will pay for freight charges and invoice you, but you must include this provision in your purchase order to Air Exchange, Inc.

4. Payments terms are noted on the proposal. Should you require different terms than noted, an addendum to this contract will need to by fully executed before revised terms will be accepted.

1. Permits and fees of any kind are not included in this proposal; including but not limited to, any pertinent load calculations; technical drawings, submittals, shop drawings and permit drawings of any kind. Should any of these items be required, a separate quote will be required.

2. Outside services, not limited to but including, concrete work, exterior penetrations, fork or scissor lift rentals, etc. are not included, unless indicated on Page 1 of 2 of the proposal.

3. All work to be performed during normal business hours (M-F, 7:30 a.m. to 4:00 p.m.). Work done outside of normal business hours will be subject to additional charges (I.e., time and one-half, double time, etc.) unless indicated on Page 1 of 2 of the proposal.

495-A Edison Ct. DIR# 1000011166 Phone: 800-300-2945
Fairfield, CA 94534 CA Contractors Lic. 664135 Email: [email protected] Proposal submitted to: Phone Date 3/4/2026
Street Application Engineer
City, State and Zip Code Job Location
Customer Representative Title: Cell:

SCOPE OF WORK: Plymovent Diesel Exhaust Removal System.

Replace Nederman Hoses with Plymovent Hose Assemblies.

One (1) 4" x 20' Hose Assemblies. $ 4,048.00
Materials: $ 4,048.00
(Est.) Shipping & Handling: $ 400.00
Lifts: N/A
Notes: 9.25% Sales Tax: $ 411.44
Terms and Conditions are attached. (1) Tailpipe: $ 210.00 Sales tax based on current rates. Actual rates in effect at billing. Electrical: N/A Freight will be pre-paid and freight bills will accompany invoice. Labor: $ 1,075.00 Existing Control Panel/Auto Start System to remain in place. TOTAL: $ 6,144.44 Delivery of system will be within 12 weeks of proposal acceptance.

Payment to be made as follows:

Chris Koss
45 days.

SIGNATURE:

Same
All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado, and other necessary insurance. Our workers are fully covered by Workman's compensation Insurance.

Salinas, CA 93906
Authorized Signature:

Note: This proposal may be with-drawn by
us if not accepted within

PROPOSAL
ACCEPTANCE OF PROPOSAL and TERMS AND
CONDITIONS. (Pages 1 and 2, inclusively.) The above
prices, specifications and Terms and Conditions are
satisfactory and are hereby accepted. You are authorized to do the work as specified. By signing where indicated, you, as agent for the organization proposed, hereby authorized Air Exchange, Inc. to perform the work as specified on Page 1 of 2 of this proposal and agree and accept the Terms and
Conditions (Page 2 of 2) of this proposal. Payment will be made as outlined above.

DATE OF
ACCEPTANCE:

Salinas 6
AIR EXCHANGE, INC.

The Clean Air Specialists
Equipment due net 30 after delivery, balance due net 30 after completion.

Estefania Vargas
45 E. Bolivar St.
831-758-7260
Chris Koss
Thank you for allowing Air Exchange, Inc. the opportunity to provide the following quotation to you. 495-A Edison Ct. DIR# 1000011166 Phone: 800-300-2945 Page 2 of 2 Fairfield, CA 94534 CA Contractors Lic. 664135 Email: [email protected] PROJECT PROPOSED:

EXCLUSIONS TO THE PROJECT PROPOSED:

1. Permits and fees of any kind are not included in this proposal; including but not limited to, any pertinent load calculations; technical drawings, submittals, shop drawings and permit drawings of any kind. Should any of these items be required, a separate quote will be required.

2. Outside services, not limited to but including, concrete work, exterior penetrations, fork or scissor lift rentals, etc. are not included, unless indicated on Page 1 of 2 of the proposal.

3. All work to be performed during normal business hours (M-F, 7:30 a.m. to 4:00 p.m.). Work done outside of normal business hours will be subject to additional charges (I.e., time and one-half, double time, etc.) unless indicated on Page 1 of 2 of the proposal.

5. Freight is not included, unless indicated on Page 1 of 2 of the proposal. Please provide preferred carrier. If you authorize, Air Exchange, Inc. will pay for freight charges and invoice you, but you must include this provision in your purchase order to Air Exchange, Inc.

4. Payments terms are noted on the proposal. Should you require different terms than noted, an addendum to this contract will need to by fully executed before revised terms will be accepted.

TERMS AND CONDITIONS
AIR EXCHANGE, INC.

Salinas 6 - Plymovent System
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#26-198, Version: 1
3-Year License Agreement for Nearmap Software Program
Approve a Resolution authorizing the Purchasing Agent to enter into a license agreement with Nearmap for an amount not to exceed $232,026.87 from February 23, 2027 to February 22, 2030.

City of Salinas Page 1 of 1 Printed on 5/29/2026
powered by Legistar™
Page | 1

CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: JUNE 2, 2026
DEPARTMENT: PUBLIC WORKS
FROM: DAVID JACOBS, PE, LS, PUBLIC WORKS DIRECTOR
BY: TELAT YALCIN, GIS ADMINISTRATOR
TITLE: 3-YEAR LICENSE AGREEMENT FOR NEARMAP SOFTWARE

PROGRAM
RECOMMENDED MOTION:

A motion to approve a resolution authorizing the Purchasing Agent to enter into a license agreement with Nearmap for an amount not to exceed $232,026.87 from February 23, 2027 to February 22, 2030.

EXECUTIVE SUMMARY:

The City of Salinas acquired high-resolution aerial imagery and web-based data layers in 2024 from Nearmap, a provider of frequently updated aerial imagery and location intelligence services.

The GIS Division has historically maintained annual licensing agreements with the vendor to support ongoing services. Transitioning to long-term licensing options, such as a three-year agreement, would provide a fixed annual cost over the term, reduce administrative overhead associated with annual renewals, and expand user access beyond what is available under the current licensing model.

BACKGROUND:

The City of Salinas has utilized services from Nearmap since 2024. Over the past two years, licensing costs have increased due to expanded use of web-based imagery layers across multiple departments, as well as standard market adjustments related to inflation.

In March 2026, the City paid a total of $70,984.34 for its annual Nearmap licensing renewal.

Nearmap has since offered a three-year licensing agreement that provides price protection and greater operational stability. This agreement ensures continued access to frequently updated, highresolution imagery and web-based data layers, while also reducing administrative effort associated with annual renewals and supporting uninterrupted service for mission-critical operations.

Page | 2
Under the proposed agreement, the City would make a total payment of $232,026.87 with annual payments of $73,113.87 in Year 1, $76,769.57 in Year 2, and $82,143.43 in Year 3 beginning in March 2027. The Nearmap licensing proposal includes two cost components. The first component is the annual base aerial imagery production service, totaling $210,106.17 over the next three fiscal years. The second component covers the 3D offline aerial imagery layers, totaling $21,920.70 over the same 3-year period. Combined, the total cost for the 3-year Nearmap licensing agreement is $232,026.87.

A three-year agreement would provide cost predictability, reduce administrative workload, and ensure uninterrupted access to essential imagery services relied upon by multiple departments. It also supports long-term planning efforts, mitigates the impact of future price increases, and enhances the City’s ability to deliver multi-year projects without service disruptions.

CEQA CONSIDERATION:

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

In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

Yes.

STRATEGIC PLAN INITIATIVE:

Approval of the proposed action supports the City Council’s 2025 Strategic Goal of City Services by promoting fiscal responsibility, sound financial management, and the delivery of high-quality customer service.

DEPARTMENTAL COORDINATION:

This staff report has been coordinated with the City Manager’s Office and City Attorney’s Office.

Page | 3
FISCAL AND SUSTAINABILITY IMPACT:

Funding will be included as part of the budget development process.

NEARMAP
Fund General Ledger
Number
(Operating/CIP)
General Ledger
Account Name
Remaining
Budget
Appropriation
Amount
Requested
(FY2026-27)
n/a n/a n/a n/a n/a
ATTACHMENTS:

Resolution
NearMap Quote for 3D Offline Layers 3-Year Renewal
NearMap Quote for Base 3-Year Renewal
Page | 1
RESOLUTION NO. (N.C.S.)

A RESOLUTION AUTHORIZING THE PURCHASING AGENT TO ENTER INTO A

THREE-YEAR TERM LICENSE AGREEMENT WITH NEARMAP
WHEREAS, the staff desires to replace the current annual license renewal with a three-year license agreement with Nearmap; and
WHEREAS, the three-year license agreement with Nearmap will have a not to exceed amount of $232,026.87, paid in annual payments.

NOW, THEREFORE, BE IT RESOLVED that pursuant to Salinas Municipal Code section 12-03.11 the City Council hereby authorizes the Purchasing Agent to enter into a threeyear license agreement with Nearmap in a total amount not to exceed $232,026.87 from February 23, 2027 to February 22, 2030
PASSED AND APPROVED this 2
th day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk

RENEWAL QUOTE
Nearmap US, Inc.
1850 W Ashton Blvd, Suite 500
Lehi, UT 84043, USA
Phone: +1 (801) 609 7250
Customer Name City of Salinas, CA Quote Number Q119024
Contract Commencement Contract commences upon
signing of quote.

Quote Expiry 02/23/2027
Subscription Term 36 Month Account Rep Sarah Walker
[email protected]
Subscription Start Date 02/23/2027 Payment Term Net 30
Public Facing URL https://www.cityofsalinas.org/ Payment Method Invoice Bill To City of Salinas, CA
Telat Yalcin
200 Lincoln Ave,
Salinas, California, 93901
8317587379
[email protected]
Ship To City of Salinas, CA
Telat Yalcin
200 Lincoln Ave,
Salinas, California, 93901
8317587379
[email protected]

PRODUCT ALLOWANCE COVERAGE SEATS
GeoData Link for Government NA Nationwide NA
Public Display License for Government NA Nationwide NA
Nearmap Vertical Offline Copy - Subscription NA Nationwide NA Delegated Authentication NA Nationwide NA
3D Viewer NA Nationwide NA
ArcGIS Integration NA NA NA
Nearmap Oblique for ArcGIS NA Nationwide NA
AI Pack: Solar Panels NA Nationwide NA
AI Pack: Building Characteristics NA Nationwide NA
AI Pack: Surfaces NA Nationwide NA
AI Pack: Vegetation NA Nationwide NA
AI Pack: Surface Permeability NA Nationwide NA
AI Pack: Debris NA Nationwide NA
Nearmap AI 30471 Parcels / Year Nationwide NA
AI Pack: Construction Sites NA Nationwide NA
AI Pack: Building Footprints NA Nationwide NA
AI Pack: Roof Characteristics NA Nationwide NA
AI Pack: Roof Condition NA Nationwide NA
AI Pack: Poles NA Nationwide NA
AI Pack: Trampolines NA Nationwide NA
AI Pack: Swimming Pool NA Nationwide NA
AI Offline Vector 30471 Credits/Year Nationwide NA
Nearmap Oblique for Government NA Nationwide Unlimited
Total USD $210,106.17
ACCEPTANCE OF Q119024 will constitute an Agreement with Nearmap By selecting “Yes” or signing below, you acknowledge that (a)(i) the Additional Terms and Conditions of the previous Agreement between the Licensee and Nearmap applies to this Renewal Quote, unless otherwise specified in Schedule 1 of this Renewal Quote, and (ii) the Product-Specific Terms set out in https://www.nearmap.com/us/en/legal/product-agreements applies to this Renewal Quote, (b) you have the authority to agree to this Renewal Quote, (c) you agree to pay the fees set forth herein plus any applicable tax(es) as set forth in the resultant invoice(s). You acknowledge that the Coverage Area by Nearmap is outlined at https://www.nearmap.com/us/en/current-aerial-maps-coverage.

Note: The terms of your Agreement remain the same unless varied by this Renewal Quote. The total in this Renewal Quote is only an estimate of your next invoice. Final credits and amendments to the subscription is dependent upon the date this Renewal Quote is accepted.

Signature / Digital Acceptance: \_1_QuoteAccepted Date: \d1\ Full Name: \tbx_1_Name\ Position: \tbx_1_Position\
PO Number (if required): \_1_PON
If printed, please sign, scan and email to: [email protected] Schedule 1
Additional Payment Terms
Amounts payable each year ( Excluding Tax)
Year 1: $66,206.45 Year 2: $69,516.78 Year 3: $74,382.94 Additional Terms and Conditions
1 PRODUCT ALLOWANCE COVERAGE SEATS
Offline DSM NA
Please refer to the
attached Survey
Specification for details
NA
Offline Textured Mesh NA
Please refer to the
attached Survey
Specification for details
NA
Offline Point Cloud NA
Please refer to the
attached Survey
Specification for details
NA
Offline TrueOrtho NA
Please refer to the
attached Survey
Specification for details
NA
Offline DEM NA
Please refer to the
attached Survey
Specification for details
NA
Total USD $21,920.70

NEW SUBSCRIPTION QUOTE
Nearmap US, Inc.
1850 W Ashton Blvd, Suite 500
Lehi, UT 84043, USA
Phone: +1 (801) 609 7250
Customer Name City of Salinas, CA Quote Number Q119025
Contract Commencement Contract commences upon
signing of quote.

Quote Expiry 02/27/2027
Subscription Term 36 Month Account Rep Sarah Walker
[email protected]
Subscription Start Date 05/11/2026 Payment Term Net 30
Payment Method Invoice
Bill To City of Salinas, CA
Telat Yalcin
200 Lincoln Ave,
Salinas, California, 93901
8317587379
[email protected]
Ship To City of Salinas, CA
Telat Yalcin
200 Lincoln Ave,
Salinas, California, 93901
8317587379
[email protected]
2 ACCEPTANCE OF Q119025 will constitute an Agreement with Nearmap By selecting “Yes” or signing below, you acknowledge that (a) you have read, understood and agree to the Master Subscription Agreement attached to this Quote,(b) the Product-Specific Terms which can be found at https://www.nearmap.com/us/en/legal/product-agreements, (c) you have the authority to agree to this New Subscription Quote and (d) you agree to pay the fees set forth herein plus any applicable tax(es) as set forth in the resultant invoice(s). This New Subscription Quote constitutes a binding commitment for the Contract Term stated above. You acknowledge that the Coverage Area by Nearmap is outlined at https://www.nearmap.com/us/en/current-aerial-maps-coverage.

Signature / Digital Acceptance: \_1_QuoteAccepted Date: \d1\ Full Name: \tbx_1_Name\ Position: \tbx_1_Position\
PO Number (if required): \_1_PON
If printed, please sign, scan and email to: [email protected] 3 Schedule 1
Additional Payment Terms
Amounts payable each year ( Excluding Tax)
Year 1: $6,907.42 Year 2: $7,252.79 Year 3: $7,760.49
Additional Terms and Conditions
4 MASTER SUBSCRIPTION AGREEMENT
THIS MASTER SUBSCRIPTION AGREEMENT IS ENTERED INTO BY AND BETWEEN NEARMAP AND CUSTOMER. BY

EXECUTING AN ORDER FORM ATTACHED TO THIS MASTER SUBSCRIPTION AGREEMENT OR INCORPORATING THIS

MASTER SUBSCRIPTION AGREEMENT BY REFERENCE, NEARMAP AND CUSTOMER AGREE TO BE BOUND BY THIS

MASTER SUBSCRIPTION AGREEMENT, THE ORDER FORM, AND ALL TERMS INCORPORATED BY REFERENCE (COLLECTIVELY, THE “AGREEMENT”). THIS AGREEMENT BECOMES EFFECTIVE UPON THE EARLIER OF CUSTOMER ACCESSING OR USING ANY NEARMAP PRODUCTS OR AS SET FORTH ON THE ORDER FORM (“EFFECTIVE DATE”). IF

CUSTOMER DOES NOT AGREE TO THIS MASTER SUBSCRIPTION AGREEMENT, CUSTOMER MUST NOT ACCESS OR USE ANY NEARMAP PRODUCTS. CAPITALIZED TERMS NOT DEFINED IN THIS MASTER SUBSCRIPTION AGREEMENT HAVE THE MEANINGS GIVEN TO THEM IN THE ORDER FORM.

1. DEFINITIONS

1.1. “Affiliate” means (a) if Customer contracts with Nearmap AU, a “Subsidiary” or “Related Party,” each as defined in the Corporations Act; or (b) if Customer contracts with Nearmap US, an entity that, directly or indirectly, controls, is controlled by, or is under common control with a party. As used herein, “control” means the power to direct the management or affairs of an entity or the beneficial ownership of fifty percent (50%) or more of the voting equity securities or other equivalent voting interests of an entity.

1.2. “APIs” means Nearmap’s application programming interfaces made available by Nearmap under the Agreement.

1.3. “Applicable Laws” means all existing and future federal, state, provincial, regional, territorial and local laws, international treaties, statutes, statutory instruments, ordinances, regulations, rules, executive orders, supervisory requirements, directives, circulars, opinions, interpretive letters and other office releases, guidelines, and policies with the force of law, of or by any government, or any governmental authority, department, or agency thereof (including all federal and state banking laws, regulations, guidance, and policies), or any court of competent jurisdiction that are applicable to the parties in their performance of their obligations or exercise of their rights under the Agreement.

1.4. “Authorized User” means Customer’s employees, agents, independent contractors, and consultants that use the Products on Customer’s behalf; provided that, to the extent Customer desires its agents, independent contractors, and consultants to be Authorized Users, it must receive Nearmap’s prior, written consent (email to suffice).

1.5. “Confidential Information” has the meaning set forth in Section 10.1.

1.6. “Corporations Act” means Corporations Act 2001 (Cth) of Australia, as amended.

1.7. “Customer” has the meaning set forth in the applicable Order Form.

1.8. “Customer Data” means information, data, and other content, in any form or medium, that is uploaded to, or otherwise received by, the Platform, directly (including via a third-party provider) from an Authorized User.

1.9. “De-identified Data” has the meaning set forth in Section 3.4.

1.10. “Derivative Works” means a work that is based upon another work, such as a revision, modification, or any other form in which the original work may be recast, transformed, or adapted and that if prepared without the authorization of the owner of the copyright in the original work, would constitute a copyright infringement.

1.11. “Documentation” means any end user technical documentation provided by Nearmap for the Products located at https://help.nearmap.com.

1.12. “Feedback” has the meaning set forth in Section 4.2.

1.13. “Fees” has the meaning set forth in Section 5.1.

1.14. “Nearmap” means (a) if Customer is located in Australia or New Zealand, as determined by Customer’s billing address set forth in an Order Form, then the Nearmap contracting entity is Nearmap Australia Pty Ltd (ABN 16 120 677 250) (NZCN 6603574) (“Nearmap AU”), with offices located at Level 4, Tower One, International Towers, 100 Barangaroo Avenue, Barangaroo NSW 2000; or (b) if Customer is located in the United States of America, Canada, or any other jurisdiction other than Australia or New Zealand, as determined by Customer’s billing address set forth in an Order Form, then the Nearmap contracting entity is Nearmap US, Inc. (“Nearmap US”), with offices located at 1850 Ashton Blvd, Ste 500, Lehi, UT 84043.

1.15. “Nearmap Data” means any data made available by or on behalf of Nearmap to the Customer in connection with the APIs or a Platform.

1.16. “Nearmap Policies” has the meaning set forth in Section 2.9.

1.17. “Order Form” means a written document or electronic form, including any order, statement of work, proposal, quote, schedule, or other such documentation, whether or not labeled “Order Form,” that details the Products, including quantities, specifications, pricing, payment terms, and any other pertinent terms and conditions agreed upon by both parties.

1.18. “Output” has the meaning set forth in Section 2.1.1. 5 1.19. “Personal Data” means any data or information that is linked or reasonably linkable to an identified or identifiable natural person.

1.20. “Platform” means Nearmap’s online web-based application provided by Nearmap, as further described in the “Products” section of an Order Form.

1.21. “Privacy Policy” has the meaning set forth in Section 13.

1.22. “Process” or “Processing” means any operation or set of operations performed, whether by manual or automated means, on information or on sets of information, such as the collection, use, storage, disclosure by transmission, dissemination or otherwise making available, alignment or combination, analysis, restriction, deletion, or modification of information.

1.23. “Products” means, collectively, the API and Platform.

1.24. “Product-Specific Terms” means the terms and conditions governing the use of specific then-current Products generally available to Nearmap customers via the Nearmap website at https://www.nearmap.com/us/en/legal/product-specific-terms.

1.25. “Service Level Agreement” means the service level agreement provided by Nearmap for the Platform, as further described at https://www.nearmap.com/legal/service-level-agreement.

1.26. “Subscription Term” means the term specified on the Order Form, including without limitation in the “License Term,” “Subscription Term,” or “Subscription Period” section of the Order Form, together with any renewal terms.

1.27. “Support Policy” has the meaning set forth in Section 2.6.

1.28. “Territory” means, as applicable, Australia, Canada, New Zealand, and/or the United States of America. Coverage by Nearmap within the Territory is outlined at https://www.nearmap.com/us/en/current-aerial-maps-coverage for Canada and the United States of America, at https://www.nearmap.com/au/coverage for Australia, and at https://www.nearmap.com/nz/coverage for New Zealand.

1.29. “Third-Party Services” has the meaning set forth in Section 3.5.

1.30. “Usage Data” has the meaning set forth in Section 3.4.

2. NEARMAP PRODUCTS AND SERVICES

2.1. Access to Products. Subject to and conditioned on Customer’s and its Authorized Users’ compliance with the terms and conditions of the Agreement:

2.1.1. Platform. To the extent Customer elects to use the Platform or the Platform is specified in an Order Form, Nearmap hereby grants Customer a non-exclusive, non-sublicensable (unless otherwise permitted in this Agreement), royalty-free, non-transferable (except in compliance with Section 14.1) right to access and use the Platform in the Territory during the Subscription Term to: (a) use the Platform and the Nearmap Data for Customer’s internal business purposes subject to any further limitations set forth in an Order Form; (b) create Derivative Works of the Nearmap Data (subject to Section 2.2), strictly in the form of reports, presentations, maps or other documents for internal purposes only that are fixed in a non-manipulable medium (the “Output”); and (c) use, and make a reasonable number of copies of, the Documentation solely in connection with the exercise of Customer’s rights under this Section 2.1.1, solely for use by Authorized Users in accordance with the Documentation and the terms and conditions herein.

2.1.2. API. To the extent Customer elects to use an API or an API is specified in an Order Form, Nearmap hereby grants to Customer a non-exclusive, non-sublicensable (unless otherwise permitted in this Agreement), royalty-free, and non-transferable (except in compliance with Section 14.1) right and license in the Territory during the Subscription Term to: (a) access and use the APIs to receive Nearmap Data; (b) use the Nearmap Data for Customer’s internal business purposes subject to any further limitations set forth in an Order Form; (c) create Output for internal purposes only; and (d) use, and make a reasonable number of copies of, the Documentation solely in connection with the exercise of Customer’s rights under this Section 2.1.2.

2.1.3. Other Rights Reserved. Other than as expressly set out in Sections 2.1.1 and 2.1.2, Customer may not use the Platform, an API, or Nearmap Data for any other purpose without Nearmap’s prior written consent, and all other rights therein and thereto are hereby reserved by Nearmap.

2.2. Nearmap Attribution. If Customer creates Output, Customer must expressly acknowledge Nearmap in a reasonably prominent manner on each Output (by displaying the Nearmap logo or such other attribution as reasonably requested by Nearmap), as the source of any data underlying the Output. Unless otherwise permitted in writing by Nearmap, Customer must not remove or cause to be removed any Nearmap logo, watermark, or other Nearmap attribution in any Output.

Customer must include all requisite legends indicating and preserving Nearmap’s rights in and to the Products. All Output must include the following copyright notice on the work: “Created with [TITLE OF PRODUCT]© [year] Nearmap US, Inc.”, if the Nearmap contracting entity is Nearmap US; or “Created with [TITLE OF PRODUCT]© [year] Nearmap Australia Pty Ltd”, if the Nearmap contracting entity is Nearmap AU.
6 2.3. Authorized Users. Authorized Users may use the Products on Customer’s behalf, provided Customer remains liable and responsible for the acts and omissions of each such Authorized User. Customer acknowledges and agrees that each Authorized User must have its own unique password and cannot share such password with any other users. If Customer is given passwords to access the Products on Nearmap’s systems, Customer shall require that all Authorized Users keep user ID and password information strictly confidential and not share such information with any unauthorized person.

Customer shall be responsible for any and all actions taken using Customer’s accounts and passwords.

2.4. Use by Affiliates. Each of Customer’s Affiliates will be entitled to access and use the Products in accordance with the terms and conditions of this Master Subscription Agreement, provided that such Affiliate executes a separate Order Form with Nearmap.

2.5. General Restrictions. Customer shall not, and shall not allow or induce any third party (including any Authorized User) to:
(a) sell, rent, lease, or use the Products for time sharing purposes; (b) use the Products to help develop, or help provide to any third party, any product or service similar to or competitive with the Products, or copy any ideas, features, functions, documentation, content, audio or visual material, images, graphics, photos, digital media, or other materials or content of any type that are provided by, derived from, or based on the Products; (c) reverse engineer, decompile, disassemble, or otherwise seek to obtain the source code of the Products; (d) copy, modify, or create Derivative Works from the Products or any Documentation (except as permitted in Section 2.1.1(b) or Section 2.1.2(c)); (e) remove or obscure any copyright or proprietary or other notice contained in the Products or Documentation; (f) create an internal or commercial imagery dataset or Derivative Works composed principally of the Nearmap Data; (g) unless otherwise stated in an Order Form, make the Products publicly accessible or viewable; (h) use the Products for the purpose of product development, tuning, training, or modification of internal models, generation of aggregated analysis, or creation of data elements related to the Products; (i) create any Derivative Works from the Products combined with any third party imagery or based on any third party imagery; (j) propagate any virus, Trojan horse, or other malware or programming routine intended to damage any system or data; (k) access or use the Products in a manner intended to circumvent or exceed service account limitations, contractual usage limits, or requirements; (l) disrupt, disable, interfere with, or disrupt the integrity or performance of the Products or the data contained therein, including through excessive use; (m) use any Products in a manner that violates any Applicable Law, regulation, or legal requirement or obligation; (n) use any Products in violation of any third-party rights of privacy or intellectual property rights; (o) use or permit the use of any tools in order to probe, scan, or attempt to penetrate or benchmark any Products; (p) post, upload, transmit, or provide any Customer Data that Nearmap reasonably deems to be unlawful, harmful, abusive, or otherwise objectionable; (q) attempt to gain unauthorized access to the Products or its related systems or networks; (r) utilize any machine learning products, including any open-source products, in connection with the use of the Products; or (s) use the Products except as expressly permitted by the Agreement.

2.6. Support; Improvements. Customer acknowledges that Nearmap may improve and modify the features and functionality of the Products during the Subscription Term. Nearmap will provide Customer with commercially reasonable notice of any changes made to a material feature or functionality of the Products and will provide support to Customer in accordance with its then-current support policies generally available to Nearmap customers via the Nearmap website:
https://support.nearmap.com (“Support Policy”). Notwithstanding the foregoing, Nearmap has no obligation to provide Customer with any additional support, but if Nearmap and Customer agree to do so, Nearmap may charge Customer reasonable additional fees for the additional support provided to Customer by Nearmap.

2.7. Product-Specific Terms. For any Products listed on an Order Form, the applicable Product-Specific Terms are hereby incorporated into the Agreement by reference.

2.8. Service Level Agreement. Nearmap’s uptimes, metrics, and provision of the Products are in accordance with the system status located at: https://www.nearmap.com/status (“Status”). Customer may subscribe to receive optional Status updates. Nearmap will provide the Platform in accordance with the availability obligations, service credits, and other terms set forth in the Service Level Agreement.

2.9. Nearmap Policies. Nearmap reserves the right to update its Product-Specific Terms, Support Policy, Documentation, and Privacy Policy (collectively “Nearmap Policies”) at any time in its sole discretion provided that any updates shall not materially diminish the level of privacy, support, or obligations set forth in such Nearmap Policies during the Subscription Term in which Nearmap updates such Nearmap Policies.

3. CUSTOMER’S OBLIGATIONS; CUSTOMER DATA

3.1. Customer Obligations. Customer is solely responsible for the accuracy, content, and legality of all Customer Data.

Customer represents and warrants to Nearmap that: (a) Customer’s use of the Products and all Customer Data is and will be at all times compliant with all Applicable Laws; (b) Customer has provided all required notices and obtained and will maintain (and acknowledges it is solely responsible for obtaining and maintaining) all necessary consents as may be required by Applicable Laws to grant the Customer Data rights granted to Nearmap in Section 3.3, and Process such Customer Data as contemplated by the Agreement; (c) Nearmap’s use of the Customer Data does not infringe or otherwise violate the rights of any third party, including any intellectual property rights, fiduciary duty, and/or privacy rights; (d) Customer will access the APIs using only the login credentials and API key(s) assigned to Customer and as provided by Nearmap; (e) Customer will comply with any limits placed on access to and use of the APIs in the Order Form or in the Documentation, including any rate or data limits on queries to the API; and (f) Customer is responsible for all activities that occur with respect to the Products, use of the Products, and compliance with the Agreement. Customer is responsible for, and will hold confidential, all login credentials, including usernames and passwords, for administrator accounts, as well as the accounts of the Authorized Users. Nearmap will not be responsible for any damages, losses, or liability to Customer, Authorized Users, or anyone else due to such information not being kept confidential by Customer or the Authorized Users, or if such information is correctly provided by an unauthorized third-party logging into and accessing the products.

3.2. Customer Restrictions. Unless otherwise agreed to in writing, Customer is prohibited from uploading, or otherwise 7 providing, directly or indirectly (including via a third-party provider or an Authorized User) by or through the Products, or provided by Customer to Nearmap to input into the Products, Customer Data that includes any sensitive information, including a social security number, passport number, driver’s license number, or similar identifier, credit card or debit card number, or any other similar information which may be subject to specific data privacy and security laws. Nearmap does not make any representations as to the adequacy of the Products to Process Customer Data or to satisfy any legal or compliance requirements which may apply to Customer Data, other than as described herein.

3.3. Rights in Customer Data. As between the parties, Customer shall retain all right, title and interest (including all patent, copyright, trade secret, and other intellectual property rights) in and to Customer Data. Customer hereby grants to Nearmap a non-exclusive, worldwide, irrevocable, transferable, sublicensable (through multiple tiers), fully paid-up, royalty-free right and license to use, copy, store, transmit, modify, and display Customer Data in order to: (a) provide the Products to Customer; (b) perform such other actions as authorized or instructed by Customer in writing (email to suffice); and (c) as otherwise permitted by Applicable Laws. Nearmap will not share Customer Data with any third parties, except with (i) Nearmap’s Affiliates, (ii) a subcontractor for a business purpose pursuant to a written agreement, provided that Nearmap shall be liable to Customer for the acts or omissions of any subcontractor to whom Nearmap has disclosed or permitted to access Customer Data as if they were the acts or omissions of Nearmap; and (iii) to third parties as necessary to comply with Applicable Laws.

3.4. Usage Data and De-identified Data. Customer acknowledges and agrees that Nearmap may create, collect, analyze, retain, and use data and other information that results or is derived from (a) Customer’s use of the Products (“Usage Data”); and (b) Customer Data that is used solely in a deidentified manner such that the information is no longer Personal Data under Applicable Laws (“De-identified Data”), for the purposes of developing, maintaining, operating, improving, or providing the Products. For clarity, Usage Data and De-identified Data, and all intellectual property and proprietary rights therein, shall be exclusively owned by Nearmap. In the event Customer gains or retains any interest in the Usage Data or De-identified Data, Customer hereby irrevocably assigns to Nearmap any and all right, title, and interest in and to any Usage Data or De-identified Data.

3.5. Third Party Application Service Providers. Customer may be able to access and use certain third-party services or products (e.g., a third-party service that integrates with Nearmap via opt-in or uses Nearmap’s APIs) through or with its use of the Products (“Third-Party Services”). IF CUSTOMER USES ANY THIRD-PARTY SERVICES, CUSTOMER AGREES TO SUCH THIRD-PARTY SERVICES’ TERMS AND CONDITIONS AND NEARMAP WILL NOT BE RESPONSIBLE FOR ANY ACT OR OMISSION OF ANY PROVIDER OF SUCH THIRD-PARTY SERVICES. NEARMAP DOES NOT WARRANT OR PROVIDE DIRECT SUPPORT FOR ANY THIRD-PARTY SERVICES. CUSTOMER

ACKNOWLEDGES AND AGREES THAT NEARMAP WILL HAVE NO RESPONSIBILITY OR LIABILITY FOR THE ACTS OR OMISSIONS OF ANY AUTHORIZED USERS IN CONNECTION WITH ANY THIRD-PARTY SERVICES.

4. IP OWNERSHIP

4.1. Ownership.

4.1.1. Nearmap Ownership. Customer agrees that Nearmap or the providers of Third-Party Services own and retain all right, title, and interest (including all patent, copyright, trade secret, and other intellectual property rights) in and to (a) the Products, Documentation, Nearmap Data, Usage Data, De-identified Data, and any and all related and underlying technology, documentation, content, audio or visual material, images, graphics, photos, digital media, or other materials or content of any type, trademarks, and other information and (b) any idea, discovery, design, method, material, formula, trade secret, invention (including any discovery of a new technology and any improvement to existing technology), know-how, innovation, writing, work of authorship, compilation, and other development or improvement, whether or not patented or patentable, copyrightable, or reduced to practice or writing and all intellectual property rights thereto.

4.1.2. Customer Ownership. Subject to Section 6.4, Customer may continue using the Output provided that Nearmap may, by written notice to Customer at any time, limit Customer’s use of certain Output or require Customer to cease using certain Output (and delete any copies of them) if Nearmap forms the view, in Nearmap’s sole and absolute discretion, that Customer’s use of the Output may infringe the rights of any third party. For the avoidance of doubt, Nearmap will continue to own all rights in and to any Nearmap Data embedded in any Output, but all other rights in and to the Output will belong to Customer.

4.1.3. Feedback. In the event Customer or its Authorized Users provide Nearmap with any suggestions, ideas, improvements, or other feedback with respect to any aspect of the Products (“Feedback”), Customer hereby irrevocably assigns to Nearmap any and all right, title, and interest in and to any Feedback.

5. FEES AND PAYMENT

5.1. Fees and Payment. All undisputed fees set forth in the Order Form (the “Fees”) shall be paid by Customer within thirty (30) days of Nearmap’s provision of an invoice to Customer. All Fees are due and payable in advance at the start of the applicable Subscription Term (and each renewal term), and except as set forth in an Order Form, all payments shall be made in the currency detailed in the invoice provided by Nearmap via ACH, credit card, or such other method as Nearmap communicates to Customer. Except as expressly set forth in Section 7.1, or 9.1(iii), all Fees are nonrefundable. Any late payments shall be subject to a service charge equal to the maximum amount allowed by law (plus the costs of collection and reasonable attorneys’ fees). Nearmap’s other contractual and/or statutory rights, claims, and remedies remain unaffected. Fees for the Products are based on units purchased during the Subscription Term and not actual usage. Customer acknowledges and agrees that the number of units purchased cannot be decreased during a Subscription Term and that the units purchased will not roll over to the next Renewal Subscription Term.

5.2. Excess Fees. Customer is responsible for paying all actual excess fees incurred by Nearmap based on: excess data, storage, processing, API calls, and access fees charged by Nearmap’s third-party cloud service providers as a result of Customer’s use in excess of the amount(s) permitted in the Agreement. 8 5.3. Fee Dispute. If Customer has a good faith belief that a particular invoice is incorrect, Customer must contact Nearmap in writing (email to suffice) within sixty (60) days of such invoice date detailing the basis of the dispute. Customer may only withhold payment on the timely disputed amount in accordance with this Section. Any payment not received by Nearmap by the due date and not subject to a good faith dispute may accrue late charges at the maximum rate permitted by law, from the date such payment was due until the date paid. Nearmap’s other contractual and/or statutory rights, claims, and remedies remain unaffected.

5.4. Taxes. If Customer contracts with (a) Nearmap AU, Customer will be responsible for the payment of any and all local, state, federal, or foreign taxes, levies, and duties of any nature, including value-added, sales, use, withholding taxes, and applicable goods and services tax (GST) under A New Tax System (Goods and Services Tax) Act 1999 (Cth) (GST Law) of Australia and its associated regulations, as amended; or (b) Nearmap US, Customer will be responsible for the payment of any and all local, state, federal, or foreign taxes, levies, and duties of any nature, including value-added, sales, use, and withholding taxes. If GST is payable on a supply made by Nearmap, Customer must pay as additional consideration an amount equal to the amount of GST payable on that supply. Customer is responsible for paying all taxes, excluding only taxes based on Nearmap's net income. If Nearmap has the legal obligation to pay or withhold taxes for which Customer is responsible under this Section 5.4, the appropriate amount shall be invoiced to and paid by Customer unless Customer is exempt from paying such taxes or subject to a reduced state of withholding tax and the Customer provides Nearmap with proof of a valid tax exemption certificate authorized by the appropriate taxing authority.

5.5. Audit. During the Subscription Term and for two (2) years after termination or expiration of the Agreement, Customer shall maintain accurate and complete records regarding its access and use of the Products. Customer shall permit Nearmap (or its auditors) access to such records, books, systems and Authorized Users to confirm compliance with the Agreement.

Nearmap will give at least thirty (30) days’ prior written notice of an audit and will not conduct an audit more than once per calendar year unless non-compliance findings are noted, in which case the audit period may be extended. If an audit results in findings of non-compliance, Nearmap may, at its discretion: (a) invoice any additional license fees due based on the Fees set forth in the applicable Order Form; (b) recover the reasonable cost of the audit if additional Fees exceed five percent (5%) of the Fees paid during the audit period; and (c) terminate the Agreement in accordance with Section 6.2.

Customer must pay all invoices issued under this Section 5.5 within thirty (30) days following the date of invoice.

6. TERM; TERMINATION; SUSPENSION

6.1. Subscription Term. The initial term of the Products shall begin on the Effective Date of the subscription specified in the Order Form and extend for the Subscription Term specified in the applicable Order Form. Upon the expiration of the initial term specified in the applicable Order Form, the term will automatically renew for successive terms of twelve (12) months each unless either party provides the other party at least thirty (30) days written notice prior to the expiration of the thencurrent Subscription Term of its intention not to renew the Subscription Term.

6.2. Termination. Either party may terminate the Agreement if the other party (a) fails to cure any material breach of the Agreement (including a failure to pay Fees) within thirty (30) days after written notice (such notice must contain sufficient detail as to the nature of the breach and state the intent to terminate and email notice is valid only in the case of termination for non-payment of Fees); (b) ceases operation without a successor; (c) seeks protection under any bankruptcy, receivership, trust deed, creditors’ arrangement, composition, or comparable proceeding, or if any such proceeding is instituted against that party (and not dismissed within sixty (60) days thereafter); or (d) if applicable, a party suspends payment of its debts generally, or is or becomes unable to pay its debts when they are due, or is or becomes unable to pay its debts within the meaning of the Corporations Act.

6.3. Suspension of Products. Upon written notice (email to suffice) to Customer, in addition to any of its other rights or remedies, Nearmap may immediately suspend Customer’s access to the Products if (a) except as provided in Section

5.1, Customer’s account is ten (10) days or more overdue until such amounts are paid in full; (b) Customer is in material breach of any term in this Agreement, provided that such suspension will be narrowly tailored to address the cause of suspension for only the duration needed for Customer to cure such breach; (c) there is an attack on the Products, the Products are accessed or manipulated by a third party, or there is another event for which Nearmap reasonably believes that the suspension of Customer’s access to the Products is necessary to protect Nearmap’s network or its other customers; (d) Nearmap is required to do so by law (e.g., where providing access to Customer or an Authorized User may be, or become, unlawful); or (e) a licensor, supplier, or provider of Third-Party Services offering its products or services to Nearmap has terminated its relationship with Nearmap or ceased to offer such products or services.

6.4. Effect of Termination. Upon termination or expiration, Customer agrees to: (a) stop all uses of the Products, Nearmap Data, and any Output; (b) permanently delete the Products, Nearmap Data, and any Output from all devices and systems of all Authorized Users (provided that, however, Customer may retain one copy of the Output and Nearmap Data included therein for compliance, regulatory, and archival purposes as required by Applicable Laws provided that such Output and Nearmap Data included therein shall remain subject to the confidentiality and non-use obligations set forth herein for so long as such Output and the Nearmap Data included therein is retained); and (c) within five (5) days of such termination, ensure that an officer of Customer certifies in writing that all applicable copies of the Products, Nearmap Data, and Output have been permanently deleted or destroyed. Except as otherwise set forth herein, termination of the Agreement is not an exclusive remedy and the exercise by either party of any remedy under the Agreement will be without prejudice to any other remedies it may have under the Agreement, by law, or otherwise. Except in the case of Customer’s termination for Nearmap’s material breach pursuant to Section 6.2, Customer shall pay to Nearmap all Fees accrued or payable to Nearmap upon the effective date of termination in accordance with Section 5.

6.5. Customer Data. Customer acknowledges that if Customer or an Authorized User deletes or modifies Customer Data from the Products, Customer Data may still reside in Nearmap’s systems, applications, databases, and servers (including as backups and/or archives). Customer acknowledges that Customer’s deletion or modification of Customer Data during any Subscription Term may have an adverse impact on Customer’s use of the Products (and Nearmap is not liable with respect thereto).

6.6. Survival. The following Sections shall survive any expiration or termination of the Agreement: 2.2, 3, 4, 5, 6.4, 6.5, 7.2, 8, 9, 10, 12, and 14.
9 7. LIMITED WARRANTY; DISCLAIMER

7.1. Limited Warranty. Nearmap warrants that (a) it will provide the Products in a manner consistent with general industry standards reasonably applicable to the provision thereof; and (b) Nearmap will not materially decrease the overall functionality of the Products. Nearmap’s sole liability (and Customer’s sole and exclusive remedy) for any breach of the warranties set forth in Section 7.1(a) and 7.1(b) shall be, in Nearmap’s sole discretion and at no additional charge to Customer, to use commercially reasonable efforts to offer Customer an error correction or work-around so that the Product(s) materially conform(s) to the warranty, or if Nearmap determines such remedies to be impracticable, Nearmap may terminate the remaining Subscription Term and Customer shall receive as its sole remedy and Nearmap’s entire liability shall be, a refund of any prepaid Fees for Products not used as of the date of the warranty claim. The limited warranty set forth in this Section 7.1 shall not apply: (a) unless Customer makes a written claim in accordance with Section 14.7 within thirty (30) days of the date on which the condition giving rise to the claim first appeared, (b) if the error was caused by misuse, unauthorized modifications or third-party hardware, software, or services, (c) if the decrease in functionality is caused by the combination of the Products with any services, hardware, connection, interface, data, or business processes not provided by Nearmap, or (d) to the Products provided on a no- charge or evaluation basis.

7.2. Warranty Disclaimer. EXCEPT FOR THE WARRANTIES SET FORTH IN THIS SECTION 7, THE PRODUCTS, AND

ANY AND ALL RELATED AND UNDERLYING TECHNOLOGY, CONTENT, AUDIO OR VISUAL MATERIAL, IMAGES,

GRAPHICS, PHOTOS, DIGITAL MEDIA OR OTHER MATERIALS OR CONTENT OF ANY TYPE, TRADEMARKS, AND OTHER INFORMATION ARE PROVIDED “AS IS” AND NEARMAP AND ITS THIRD-PARTY PROVIDERS, AGENTS,

MANDATARIES, AND AFFILIATES HEREBY DISCLAIM, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE

LAW, ALL WARRANTIES, WHETHER EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE, OF MERCHANTABILITY,

OR THAT THE PRODUCTS AND ANY AND ALL RELATED AND UNDERLYING TECHNOLOGY, CONTENT, AUDIO

OR VISUAL MATERIAL, IMAGES, GRAPHICS, PHOTOS, DIGITAL MEDIA OR OTHER MATERIALS OR CONTENT OF

ANY TYPE, TRADEMARKS, AND OTHER INFORMATION, OR ANY RESULTS OF OR THE USE THEREOF, WILL MEET CUSTOMER’S OR ANY OTHER PERSON’S REQUIREMENTS, OPERATE WITHOUT INTERRUPTION, BE

COMPATIBLE OR WORK WITH ANY PRODUCTS, SYSTEM OR OTHER SERVICES, OR BE SECURE, ACCURATE, CORRECT, RELIABLE, COMPLETE, FREE OF HARMFUL CODE, OR ERROR-FREE. ADDITIONALLY, NEARMAP STRICTLY DISCLAIMS ALL WARRANTIES WITH RESPECT TO ANY THIRD-PARTY PRODUCTS. CUSTOMER IS SOLELY RESPONSIBLE FOR ITS AND ITS AUTHORIZED USERS’ INTERACTIONS AND SHARING OF INFORMATION WITH OTHER USERS.

7.3. Notwithstanding any other provision, the rights of a party under this Agreement are in addition to and do not exclude or limit any other rights or remedies under the Australian Consumer Law in the Competition and Consumer Act 2010 (Cth), to the extent the Customer contracts with Nearmap AU.

8. LIMITATION OF LIABILITY.

8.1. NEITHER PARTY SHALL BE LIABLE, UNDER ANY LEGAL OR EQUITABLE THEORY OF LAW, WITH RESPECT TO

ANY SUBJECT MATTER OF THE AGREEMENT FOR ANY INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR

PUNITIVE DAMAGES OF ANY KIND, INCLUDING LOST PROFITS, BUSINESS, CONTRACTS, REVENUE, GOODWILL,

PRODUCTION, AND ANTICIPATED SAVINGS OR DATA, EVEN IF INFORMED OF THE POSSIBILITY OF SUCH DAMAGES IN ADVANCE.

8.2. EXCEPT WITH RESPECT TO (A) EITHER PARTY’S OBLIGATIONS UNDER SECTION 9 (INDEMNIFICATION) (WHICH SHALL BE LIMITED IN THE AGGREGATE TO TWO TIMES (2X) THE FEES PAID BY CUSTOMER TO NEARMAP UNDER THE APPLICABLE ORDER FORM DURING THE TWELVE (12) MONTH PERIOD PRIOR TO WHEN THE CLAIM AROSE); (B) EITHER PARTY’S OBLIGATIONS UNDER SECTION 10 (CONFIDENTIAL INFORMATION) (WHICH SHALL BE LIMITED IN THE AGGREGATE TO TWO TIMES (2X) THE FEES PAID BY CUSTOMER TO NEARMAP UNDER THE APPLICABLE ORDER FORM DURING THE TWELVE (12) MONTH PERIOD PRIOR TO WHEN THE CLAIM AROSE); (C) CUSTOMER’S PAYMENT OBLIGATIONS UNDER THE AGREEMENT; (D) CUSTOMER’S BREACH OF SECTION 2.5 (GENERAL RESTRICTIONS); OR (E) EITHER PARTY’S GROSS

NEGLIGENCE, WILLFUL MISCONDUCT, OR FRAUD AS DETERMINED BY A COURT OF FINAL AND COMPETANT JURISDICTION: EACH PARTY’S AGGREGATE LIABILITY SHALL IN NO EVENT EXCEED THE FEES PAID BY CUSTOMER TO NEARMAP UNDER THE APPLICABLE ORDER FORM DURING THE TWELVE (12) MONTH PERIOD PRIOR TO WHEN THE CLAIM AROSE.

8.3. THE LIMITATIONS UNDER THIS SECTION 8 APPLY WITH RESPECT TO ALL LEGAL THEORIES, WHETHER IN CONTRACT, TORT OR OTHERWISE, AND TO THE EXTENT PERMITTED BY LAW. THE PROVISIONS OF THIS SECTION 8 ALLOCATE THE RISKS UNDER THE AGREEMENT BETWEEN THE PARTIES, AND THE PARTIES

HAVE RELIED ON THESE LIMITATIONS IN DETERMINING WHETHER TO ENTER INTO THE AGREEMENT AND THE PRICING FOR THE PRODUCTS.

9. INDEMNIFICATION.

9.1. Nearmap Indemnification. Nearmap shall defend Customer at Nearmap’s expense against any claims, costs, damages, losses, liabilities and expenses (including reasonable attorneys’ fees and costs) arising from the direct infringement of a U.S. and Australia registered intellectual property rights asserted against Customer by a third party based upon Customer’s use of the Products as delivered by Nearmap in accordance with the terms of the Agreement and Nearmap shall indemnify and hold Customer harmless against all reasonable costs (including attorneys’ fees) finally awarded against Customer by a court of competent jurisdiction, or agreed in a written settlement agreement signed by Nearmap, provided that Nearmap shall have received from Customer: (a) prompt written notice of such claim (but in any event notice in sufficient time for Nearmap to respond without prejudice); (b) the exclusive right to control and direct the investigation, defense, or settlement (if applicable) of such claim (as long as such settlement releases Customer from any and all liability); and (c) all reasonable necessary cooperation of Customer. If Customer’s use of any Products is, or in Nearmap’s opinion is likely to be, enjoined due to the type of infringement specified above, or if required by settlement, or Nearmap exercises its right to require Customer to limit or cease using Output under Section 4.1.2, Nearmap may, in its sole and reasonable discretion: (i) substitute substantially functionally similar products or services; (ii) procure for Customer the right to continue using the Products; or if (i) and (ii) are commercially impracticable, (iii) terminate the Agreement and refund to Customer any unused, prepaid Fees paid by Customer for the terminated period. The foregoing 10 indemnification obligation of Nearmap shall not apply to the extent that the alleged infringement arises from: (1) any modification of the Products by any other party other than Nearmap; (2) access to or use of any Products in combination with any hardware, system, software, network, or other products, materials, or services not provided by Nearmap; (3) use of the Products in breach of the Agreement; or (4) Customer Data. THIS SECTION 9.1 SETS FORTH NEARMAP’S SOLE LIABILITY AND CUSTOMER’S SOLE AND EXCLUSIVE REMEDY WITH RESPECT TO ANY CLAIM OF INTELLECTUAL PROPERTY INFRINGEMENT.

9.2. Customer Indemnification. Customer agrees to defend, indemnify and hold harmless Nearmap and its affiliates, licensors, and suppliers, and Nearmap’s and their respective employees, contractors, agents, officers, and directors, from and against any and all claims, damages, obligations, losses, liabilities, costs or debt, and expenses (including reasonable attorneys’ fees and costs) arising from: (a) Customer’s and any Authorized User’s use of the Products; and (b) Customer’s violation of Section 2.5 (General Restrictions).

10. CONFIDENTIALITY.

10.1. Confidential Information. Each party, as a receiving party, agrees to retain in confidence the non-public information and know-how disclosed to it pursuant to the Agreement which is either designated in writing as proprietary and/or confidential, if disclosed in writing, or if disclosed orally, is designated in writing (which may be via email) as confidential within thirty (30) days of the oral disclosure or should reasonably be understood to be confidential by the recipient (the “Confidential Information”). Notwithstanding any failure to so designate them, the Products, the Documentation, the Usage Data, the De-identified Data, the Nearmap Data, the Feedback, and the commercial terms of the Agreement as set forth in any Order Form shall be Nearmap’s Confidential Information. Each party agrees to: (a) preserve and protect the confidentiality of the other party’s Confidential Information, using at least the same degree of care which it uses to prevent the disclosure of its own confidential information of like importance, but in no event less than reasonable care; (b) refrain from using the other party’s Confidential Information except as contemplated herein; and (c) not disclose such Confidential Information to any third party except to employees, officers, affiliates, controlling stockholders, agents, advisors, subcontractors, and other representatives as is reasonably required in connection with the exercise of its rights and obligations under the Agreement (and only subject to binding use and disclosure restrictions at least as protective as those set forth herein). Each party agrees to promptly notify the other party of any unauthorized disclosure or use of any Confidential Information and to assist the other party in remedying such unauthorized use or disclosure by taking such steps as are reasonably requested.

10.2. Exceptions. Notwithstanding the foregoing, Confidential Information shall not include information which is: (a) already publicly known without breach of the Agreement; (b) discovered, created or independently developed by the receiving party without use of, reliance upon, or reference to, the Confidential Information of the disclosing party, as shown in records of the receiving party; (c) otherwise known to the receiving party through no wrongful conduct of the receiving party, or (d) required to be disclosed by law or court order or by the listing rules of any stock exchange where the recipient's securities are listed or quoted; provided that the receiving party shall provide prompt notice thereof and commercially reasonable assistance to the disclosing party to enable the disclosing party to seek a protective order or otherwise prevent or restrict such disclosure. Moreover, either party hereto may disclose any Confidential Information hereunder to such party’s agents, attorneys and other representatives (and only subject to confidentiality obligations at least as protective as those set forth herein) or any court of competent jurisdiction as reasonably required to resolve any dispute between the parties hereto. Each party agrees and acknowledges that any breach or threatened breach of this Section 10 may cause irreparable injury to the disclosing party and that, in addition to any other remedies that may be available, in law, in equity or otherwise, the disclosing party shall be entitled to seek injunctive relief against the threatened breach of the Agreement or the continuation of any such breach by the receiving party, without the necessity of proving actual damages or posting any bond, in addition to any other rights or remedies provided by law.

11. SECURITY. Each party shall comply with all Applicable Laws. Nearmap shall use reasonable physical, technical, and administrative procedures, which procedures may include SOC 2 certification or the equivalent thereof depending on the Product, designed to protect, safeguard and help prevent loss, misuse, and unauthorized access, disclosure, alteration or destruction of Customer Data, and will choose these safeguards based on the sensitivity of the information that is collected, Processed, and stored and the current state of applicable technology. Upon Customer’s written request, Nearmap shall, not more than once per rolling twelve (12) months, respond to a reasonable security questionnaire provided by Customer regarding Nearmap’s compliance with the obligations set forth in this Section 11. All Nearmap’s responses and information provided in response to Customer’s security questionnaires are Confidential Information under this Agreement. In lieu of completing Customer’s security questionnaire, Nearmap may make available to Customer information regarding Nearmap’s compliance with the obligations set forth in this Section 11 in the form of a copy of the summary of Nearmap’s the then- current applicable security audit report.

12. PUBLICITY. Except as otherwise agreed in writing (email to suffice), neither party may use the other party’s name, logos, or marks without such party’s written pre-approval in each case.

13. DATA PROCESSING. Nearmap’s data security and privacy practices form an integral part of Nearmap's product engineering and service delivery principles. Customer understands and acknowledges that to the extent Nearmap Processes any Personal Data, Nearmap shall do so in accordance with its privacy notice, which is available at https://www.nearmap.com/us/en/legal/privacy-policy (if contracting with Nearmap US) or https://www.nearmap.com/au/en/legal/privacy-policy (if contracting with Nearmap AU) (“Privacy Policy”); provided, however, that to the extent Customer Data includes any information which is defined as “personal data,” “personal information,” “personal identifiable information,” or similarly defined data or information under Applicable Laws, Nearmap will Process such information as a data “processor” or “service provider” (each term, as applicable) and a list of Nearmap’s sub-processors will be made available upon Customer’s written request (email to suffice).

14. GENERAL TERMS

14.1. Assignment. The Agreement will bind and inure to the benefit of each party’s permitted successors and assigns. Neither party may assign the Agreement except upon the advance written consent of the other party, except that either party may assign the Agreement without such consent in connection with a merger, reorganization, acquisition, or other transfer of all or substantially all of such party’s assets or voting securities (other than, in the case of Customer, to an entity that is 11 reasonably deemed to be a direct competitor of Nearmap). Any attempt to transfer or assign the Agreement except as expressly authorized under this Section 14.1 will be null and void.

14.2. Force Majeure. Neither party shall be liable to the other for any delay or failure to perform any obligation under the Agreement if the delay or failure is due to unforeseen events which occur after the signing of the Agreement and which are beyond the reasonable control of such party, such as a strike, blockade, war, act of terrorism, riot, natural disaster, or failure or diminishment of power or telecommunications or data networks or services.

14.3. Subcontractors. Nearmap may use the services of subcontractors for performance of services under the Agreement, provided that Nearmap remains responsible for such subcontractors’ compliance with the terms of the Agreement.

14.4. Independent Contractors. The parties to the Agreement are independent contractors. There is no relationship of partnership, joint venture, employment, franchise, or agency created hereby between the parties. Neither party will have the power to bind the other or incur obligations on the other party’s behalf without the other party’s prior written consent.

14.5. Severability. If any provision of the Agreement shall be adjudged by any court of competent jurisdiction to be unenforceable or invalid, that provision shall be limited to the minimum extent necessary so that the Agreement shall otherwise remain in effect.

14.6. Governing Law and Venue; Waiver of Jury Trial.

14.6.1. If Customer contracts with Nearmap AU, then the Agreement and any disputes arising out of or related hereto shall be governed by and construed in accordance with the laws of the State of New South Wales, Australia, without giving effect to its conflicts of laws rules, the United Nations Convention on the International Sale of Goods, or the Uniform Computer Information Transactions Act. Except for claims for injunctive or equitable relief or claims regarding intellectual property rights (which may be brought in any competent court in New South Wales). The jurisdiction and venue for actions related to the subject matter hereof shall be the state and federal courts located in New South Wales, Australia and both parties hereby submit to the personal jurisdiction of such courts. Each party also hereby waives any right to jury trial in connection with any action or litigation in any way arising out of or related to the Agreement.

14.6.2. If Customer contracts with Nearmap US, then the Agreement and any disputes arising out of or related hereto shall be governed by and construed in accordance with the laws of the State of Utah, United States of America, without giving effect to its conflicts of laws rules, the United Nations Convention on the International Sale of Goods, or the Uniform Computer Information Transactions Act. The jurisdiction and venue for actions related to the subject matter hereof shall be the state and United States federal courts located in Salt Lake County, Utah except for claims for injunctive or equitable relief or claims regarding intellectual property rights (which may be brought in any competent court in Salt Lake County) and both parties hereby submit to the personal jurisdiction of such courts. Each party also hereby waives any right to jury trial in connection with any action or litigation in any way arising out of or related to the Agreement.

14.7. Notice. Notwithstanding anything to the contrary herein, any notice or communication required or permitted under the Agreement shall be in writing to the parties at the addresses set forth in the applicable Order Form or at such other address as may be given in writing by either party to the other in accordance with this Section. A notice shall be deemed to have been received by the addressee (a) if given by hand, immediately upon receipt; (b) if given by overnight courier service, immediately upon receipt; or (c) if given by registered or certified mail, postage prepaid and return receipt requested, the fourth day (excluding holidays) after such notice is deposited in the mail. In addition, any legal notices to Nearmap must be delivered to the following email address: [email protected] but, notwithstanding earlier receipt via email, legal notices will be deemed received when the physical notice is received as set forth in the preceding sentence.

14.8. Order of Precedence. In the event of any conflict between this Master Subscription Agreement, an Order Form, and the Product-Specific Term, the order of precedence shall be (a) Order Form; (b) this Master Subscription Agreement; and (c) the Product-Specific Terms (unless expressly stated otherwise in the Product-Specific Terms), in order of appearance.

14.9. Amendments; Waivers. All supplements, modifications, or amendments of the Agreement shall be executed in writing by a duly authorized representative of each party to the Agreement. No waiver will be implied from conduct or failure to enforce or exercise rights under the Agreement, nor will any waiver be effective unless in writing signed by a duly authorized representative on behalf of the party claimed to have waived. Purchase orders (and similar documents) issued by Customer are for administrative purposes only (e.g., setting forth products and services ordered and associated fees) and any additional or different terms or conditions contained in any such order shall not apply (even if the order is accepted, or performed on by Nearmap).

14.10. Interpretation. The words “hereof,” “herein,” and “hereunder” and words of similar import, when used in the Agreement, will refer to the Agreement as a whole and not to any particular provision of the Agreement. Terms defined in the singular will have correlative meanings when used in the plural, and vice versa. The headings herein are for convenience of reference only, do not constitute part of the Agreement and will not be deemed to limit or otherwise affect any of the provisions hereof. Where a reference in the Agreement is made to a section, exhibit, or schedule, such reference will be to a section, exhibit, or schedule to the Agreement unless otherwise indicated. Whenever the words “include,” “includes” or “including” are used in the Agreement, they will be deemed to be followed by the words “without limitation,” unless preceded by the word “not.” If a link herein redirects to a geographic-specific link, including but not limited to geographicspecific sites for Australia, New Zealand, and Canada, that geographic-specific link shall be given the same effect as if it were explicitly included in the Agreement in lieu of the link from which the redirect occurred that is set forth in the Agreement.

14.11. No Third-Party Rights. There are no third-party beneficiaries to the Agreement.

14.12. Export Compliance. Each party shall comply with all applicable export and re-export control and trade and economic sanctions laws, including the Export Administration Regulations maintained by the U.S. Department of Commerce, trade and economic sanctions maintained by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), and the International Traffic in Arms Regulations maintained by the U.S. State Department. Neither party, nor any of its 12 subsidiaries or any person acting on its behalf or owning fifty percent (50%) or more of its equity securities or other equivalent voting interests, is (a) a person on the List of Specially Designated Nationals and Blocked Persons or any other list of sanctioned persons administered by OFAC or any other governmental entity, or (b) a national or resident of, or a segment of the government of, any country or territory for which the United States of America has embargoed goods or imposed trade sanctions.

14.13. Compliance with Anti-corruption Laws. Each party shall comply with the U.S. Foreign Corrupt Practices Act and any Applicable Laws related to anti-corruption of other countries, to the extent applicable. Each party shall not, at any time, directly or indirectly (through a subcontractor or other third party), pay, offer, give, or promise to pay or give, or authorize the payment of, any monies or any other thing of value to influence the improper performance of any individual government officials and employees of state-owned enterprises.

14.14. Entire Agreement. The Agreement is the complete and exclusive statement of the mutual understanding of the parties and supersedes and cancels all previous written and oral agreements and communications, relating to the subject matter of the Agreement. Unless expressly agreed between the parties in writing in an Order Form, the terms, conditions, or provisions of any purchase order, invoice, or other administrative document issued by Customer in connection with the Agreement will not modify, alter, or expand the rights, duties, or obligations of the parties under, or will not otherwise modify, the Agreement, irrespective of the timing of its issuance or any failure of Nearmap to object to such terms, conditions, or provisions. 13 ADDENDUM TO MASTER SUBSCRIPTION AGREEMENT
(GOVERNMENT CUSTOMERS)

1. Section 1.1 (Affiliate) of the Agreement is deleted in its entirety and replaced with the following:
“ “Affiliate” means an entity that, directly or indirectly, controls, is controlled by, or is under common control with a party. As used herein, “control” means the power to direct the management or affairs of an entity or the beneficial ownership of fifty percent (50%) or more of the voting equity securities or other equivalent voting interests of an entity.”

2. Section 1.6 (Corporations Act) of the Agreement is deleted in its entirety and replaced with “Intentionally Omitted”.

3. Section 1.14 (Nearmap) of the Agreement is deleted in its entirety and replaced with the following:
“ “Nearmap” means Nearmap US, Inc. (“Nearmap US”), with offices located at 1850 Ashton Blvd, Ste 500, Lehi, UT 84043.”

4. Section 1.28 (Territory) of the Agreement is deleted in its entirety and replaced with the following:
“ “Territory” means the United States of America. Coverage by Nearmap within the Territory is outlined at https://www.nearmap.com/us/en/current-aerial-maps-coverage.”

5. Section 2.2 (Nearmap Attribution) of the Agreement is deleted in its entirety and replaced with the following:
“2.2 Nearmap Attribution. If Customer creates Output, Customer must expressly acknowledge Nearmap in a reasonably prominent manner on each Output (by displaying the Nearmap logo or such other attribution as reasonably requested by Nearmap), as the source of any data underlying the Output. Unless otherwise permitted in writing by Nearmap, Customer must not remove or cause to be removed any Nearmap logo, watermark, or other Nearmap attribution in any Output.

Customer must include all requisite legends indicating and preserving Nearmap’s rights in and to the Products. All Output must include the following copyright notice on the work: “Created with [TITLE OF PRODUCT]©[year] Nearmap US, Inc.”.

6. A new section 2.10 (Data Use for Government Customers) is inserted into the Agreement as follows:
“2.10 Government Products. Where the Customer purchases unlimited allowance Products, if set forth in the applicable Order Form, that are exclusively offered to government customers (“Government Products”), these Government Products will be subject to Nearmap’s Fair Use Policy, which is available at https://www.nearmap.com/legal/fair-use-policy. The following conditions will apply to the Customer's use of Government Products: (a) the amount of Nearmap Data used by Customer when accessing the Government Products will be monitored and then calculated at the end of every Subscription Term based on the total data of all Authorized Users who access and use Customer's Nearmap account during the Subscription Term; and (b) if the Customer elects to download and/or export Government Products available to Customer through the Platform, this will be applied to the calculation of the Licensee’s use of the Government Products.”

7. Section 5.1 (Fees and Payment) is deleted in its entirety and replaced with the following:
“5.1 Fees and Payment. All undisputed fees set forth in the Order Form (the “Fees”) shall be paid in accordance with the payment terms outlined in the Order Form. All Fees are due and payable in advance at the start of the applicable Subscription Term (and each renewal term), and except as set forth in an Order Form, all payments shall be made in the currency detailed in the invoice provided by Nearmap via ACH, credit card, or such other method as Nearmap communicates to Customer. Except as expressly set forth in Section 7.1, or 9.1(iii), all Fees are nonrefundable. Fees for the Products are based on units purchased during the Subscription Term and not actual usage. Customer acknowledges and agrees that the number of units purchased cannot be decreased during a Subscription Term and that the units purchased will not roll over to the next Renewal Subscription Term.

8. Section 5.2 (Excess Fees) of the Agreement is deleted in its entirety and replaced with the following:
“5.2 Excess Fees. With the exception of Government Products, Customer is responsible for paying all actual excess fees incurred by Nearmap based on: excess data, storage, processing, API calls, and access fees charged by Nearmap’s thirdparty cloud service providers as a result of Customer’s use in excess of the amount(s) permitted in the Agreement.”

9. Section 5.4 (Taxes) of the Agreement is deleted in its entirety and replaced with the following:
“5.4 Taxes. Customer will be responsible for the payment of any and all local, state, federal, levies, and duties of any nature, including value-added, sales, use, and withholding taxes. Customer is responsible for paying all taxes, excluding only taxes based on Nearmap's net income. If Nearmap has the legal obligation to pay or withhold taxes for which Customer is responsible under this Section 5.4, the appropriate amount shall be invoiced to and paid by Customer unless Customer is exempt from paying such taxes or subject to a reduced state of withholding tax and the Customer provides Nearmap with proof of a valid tax exemption certificate authorized by the appropriate taxing authority.”

10. Section 5.5 (Audit) of the Agreement is deleted in its entirety and replaced with “Intentionally Omitted”.

11. Section 6.2 (Termination) of the Agreement is deleted in its entirety and replaced with the following:
“6.2 Termination. Either party may terminate the Agreement if the other party (a) fails to cure any material breach of the Agreement (including a failure to pay Fees) within thirty (30) days after written notice (such notice must contain sufficient detail as to the nature of the breach and state the intent to terminate and email notice is valid only in the case of termination 14 for non-payment of Fees); (b) ceases operation without a successor; (c) seeks protection under any bankruptcy, receivership, trust deed, creditors’ arrangement, composition, or comparable proceeding, or if any such proceeding is instituted against that party (and not dismissed within sixty (60) days thereafter); or (d) if applicable, a party suspends payment of its debts generally, or is or becomes unable to pay its debts when they are due.

6.2.1. Non Appropriation of Funding. Nearmap acknowledges that the terms of the Agreement are contingent upon appropriation of Federal, State, or other sources of funding being provided to Customer, and that funding is on a fiscal year basis and subject to annual appropriations. Should Customer not receive funding during the Subscription Term, Customer shall be permitted to terminate the remaining Subscription Term of the Agreement at the end of the current appropriation period without further obligation or penalty, upon no less than thirty (30) days written notice before the end of the current appropriation period. Customer agrees to submit certified evidence to Nearmap of such non-appropriation of funding. Such termination will not affect Customer’s obligation with Fees during the current fiscal year for which funding is received and any termination of the Agreement will not entitle Customer to a refund of any prepaid Fees. Customer agrees that it will use best efforts to obtain sufficient funds, including but not limited to, requesting in its budget for each fiscal period during the Subscription Term sufficient funds to meet its obligations under the Agreement.”

12. Section 7.3 (Limited Warranty, Disclaimer) is deleted in its entirety and replaced with “Intentionally Omitted”.

13. Section 9.2 (Customer Indemnification) of the Agreement is deleted in its entirety and replaced with “Intentionally Omitted”.

14. Section 13 (Data Processing) of the Agreement is deleted in its entirety and replaced with the following:
“13. DATA PROCESSING. Nearmap’s data security and privacy practices form an integral part of Nearmap's product engineering and service delivery principles. Customer understands and acknowledges that to the extent Nearmap Processes any Personal Data, Nearmap shall do so in accordance with its privacy notice, which is available at https://www.nearmap.com/us/en/legal/privacy-policy (“Privacy Policy”); provided, however, that to the extent Customer Data includes any information which is defined as “personal data,” “personal information,” “personal identifiable information,” or similarly defined data or information under Applicable Laws, Nearmap will Process such information as a data “processor” or “service provider” (each term, as applicable) and a list of Nearmap’s sub-processors will be made available upon Customer’s written request (email to suffice).”

15. Section 14.6 (Governing Law and Venue; Waiver of Jury Trial) is deleted in its entirety and replaced with the following:
“14.6 Governing Law and Venue; Waiver of Jury Trial. The Agreement and any disputes arising out of or related hereto shall be governed by and construed in accordance with the laws of the State of Utah, United States of America, without giving effect to its conflicts of laws rules, the United Nations Convention on the International Sale of Goods, or the Uniform Computer Information Transactions Act. The jurisdiction and venue for actions related to the subject matter hereof shall be the state and United States federal courts located in Salt Lake County, Utah except for claims for injunctive or equitable relief or claims regarding intellectual property rights (which may be brought in any competent court in Salt Lake County) and both parties hereby submit to the personal jurisdiction of such courts. Each party also hereby waives any right to jury trial in connection with any action or litigation in any way arising out of or related to the Agreement.”

16. Section 14.8 (Order of Precedence) is amended to insert the following language at the end of the section:
“If Customer purchases the Products through a reseller, the terms and conditions under this Agreement will apply. This Agreement between Nearmap and Customer supersedes all terms and conditions attached to Customer’s and/or reseller’s purchase order.”
15 FAIR USE POLICY
General

1. It is important to Nearmap that all customers are able to access the Products and Services. Accordingly, we have devised a Fair Use Policy that applies to the data usage of the Products and Services.

2. In this Fair Use Policy:
a. Excessive Use has the meaning given to that term in section 7 of this Fair Use Policy; b. Fair Use Policy means this policy;
c. Nearmap, we, us or our means Nearmap US, Inc.;
d. Products has the meaning given to that term in Your Nearmap Agreement; e. Services has the meaning given to that term in Your Nearmap Agreement; f. You or Your means any customer of Nearmap;
g. Your Nearmap Agreement means the agreement pursuant to which Nearmap provides You with various products and services; and h. Unreasonable Use has the meaning given to that term in section 5 of this Fair Use Policy.

3. We reserve the right to vary the terms of this Fair Use Policy from time to time.

4. This Fair Use Policy is in addition to Your Nearmap Agreement and in the event of any inconsistency between the terms of this Fair Use Policy and the terms and conditions of Your Nearmap Agreement, Your Nearmap Agreement prevails.

Unreasonable Use

5. We consider Your use of the Products and Services unreasonable where You use it in a manner which is reasonably considered by Nearmap to be fraudulent use, to be contrary to Your Nearmap Agreement or to adversely affect other Nearmap customers’ use of or access to the Products and Services.

6. Among other things, “fraudulent use” includes resupply of the Products and Services without Nearmap’s consent so that someone else may access or use the Products and Services or take advantage of the Products and Services.

Excessive Use

7. Excessive Use is a continuing and unreasonably disproportionate use of the Products and Services when compared to other average individual named users.

Nearmap’s Rights

8. Where Your use of the Products and Services constitutes Unreasonable Use and/or Excessive Use, Nearmap may contact You to discuss changing Your usage pattern so that it conforms with this Fair Use Policy, or to upgrade to a more suitable Product or Service (ifapplicable).

9. If, after Nearmap has contacted You, Your Unreasonable Use and/or Excessive Use continues, Nearmap may, without further notice to You:
a. restrict Your access to low resolution imagery for the remainder of the month; and/or b. restrict Your access to low resolution imagery for the remainder of the month until Your data allowance is reset at the beginning of the next month (if applicable); and/or
c. restrict Your access for the remainder of the month; and/or d. restrict Your access to Nearmap until Your data allowance is reset at the beginning of the next month (if applicable); and/or e. immediately cease Your access to Nearmap; and/or
f. exercise any other right available to Nearmap under the terms of Your Nearmap Agreement.

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#26-202, Version: 1
Sanitary Sewer Spot Repair and Improvements; CIP No. 9010 Approve a Resolution authorizing the transfer of $217,100 from Sewer Fund Balance (Fund 6400) to CIP No. 9010 (Sanitary Sewer Spot Repair and Improvements); and increasing the project contingency in the amount of $217,100 for the Sanitary Sewer Spot Repair and Improvements; CIP No. 9010 for a total construction contingency of $719,926 (21.5%).

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CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: MAY 26, 2026
DEPARTMENT: PUBLIC WORKS
FROM: DAVID JACOBS, PE, LS, DIRECTOR
BY: JOSIE LANTACA, ASSISTANT ENGINEER

ADRIANA ROBLES, PE, CFM, CITY ENGINEER
TITLE: SANITARY SEWER SPOT REPAIR AND IMPROVEMENTS
CIP NO. 9010
RECOMMENDED MOTION:

A motion to approve a Resolution:
1) Transferring $217,100 from Sewer Fund Balance (Fund 6400) to CIP No. 9010 (Sanitary Sewer Spot Repair and Improvements); and
2) Increasing the project contingency in the amount of $217,100 for the Sanitary Sewer Spot Repair and Improvements; CIP No. 9010 for a total construction contingency of $719,926 (21.5%).

EXECUTIVE SUMMARY:

The Sanitary Sewer Spot Repair and Improvements; CIP No. 9010 is one of the identified projects listed as part of the “Investments in Water and Sewer” funded with the American Rescue Plan Act (ARPA) of 2021 Funds. The project was awarded to Sierra Construction & Excavation, Inc. on August 20, 2024 in the amount of $3,352,170. Construction started on December 2, 2024, and will be completed this month.

Three contract change orders (CCOs) have been issued for the project and additional CCOs are pending for an estimated total CCOs amount of $719,926. The approved contingency for this project is $502,826 (Resolution No. 23073). Therefore, staff recommend an increase to the project contingency in the amount of $217,100 for a total construction contingency of $719,926 (21.48%).

BACKGROUND:

The Sanitary Sewer Spot Repair and Improvements; CIP No. 9010 is one of the identified projects listed as part of the “Investments in Water and Sewer” funded with the American Rescue Plan Act (ARPA) of 2021 Funds. The list of projects included in this Sanitary Sewer Spot Repair and Improvements project is from the 2023 Sanitary Sewer Master Plan (SSMP). The list is a result of findings from the 2017 Closed Circuit Television (CCTV) for pipeline video inspection, and CCTV inspections performed by maintenance staff. Staff prioritized the CIP list according to the Page | 2
pipe and sanitary sewer facility conditions. Table 1 provides the CIP number from the SSMP and locations included in this Sanitary Sewer Spot Repair and Improvements Project:

Table 1. CIP No. – Street Name and Location
Base Bid:

CIP 7 – Davis Rd/Market St Overpass Bunker Repair
CIP 13 – Riker Street Sewer Main Repair
CIP 14B – Villa Street Sewer Main Repair
CIP 14C – Capitol Street Sewer Main Repair
CIP 17 – Donner Way Sewer Main Repair
CIP 18 – San Miguel Avenue Sewer Main Repair
Additive Bid Item A:

CIP 12B – Mae Avenue Sewer Main Repair (not awarded due to insufficient funds) Additive Bid Item B:

CIP 12A – Del Monte Avenue Sewer Main Repair
Additive Bid Item C:

CIP 16 – Highway 101/N. Main Street Overpass Bunker Repair The scope of work included: traffic control; asphalt concrete and/or concrete pavement removal and disposal; removal of existing sanitary sewer main; abandonment of existing sanitary sewer main; installation of sanitary sewer main; removal, abandonment, replacement and/or installation of sanitary sewer manholes (standard and drop); reconnection of existing sanitary sewer laterals to new sanitary sewer main; sewer bypassing; replacement of vault doors; trench restorations; and all other related work required to provide sanitary sewer repairs and improvements as described and specified on the plans and project specifications.

On August 20, 2024, the project was awarded to Sierra Construction & Excavation, Inc. in the amount of $3,352,170.00 (Resolution No. 23073). Construction started on December 2, 2024, and will be completed this month.

Several issues have been encountered after the start of construction that resulted in Contract Change Orders (CCOs). Table 2 is a summary of these CCOs.

Table 2. Change Order Summary
CCO
Number
Description Amount
1 Clarification to the sewer lateral reconnection requirement. $0 2 Removal/replacement of additional 160 LF of deteriorated pipe along Riker St (south towards Lang St), and removal/replacement of brick manholes (2 each), including reconnection of existing sewer laterals (8 each) to the new sewer pipe.
$245,800.00
3 Extra work due to cave-ins while trenching at Donner Way and Villa St, utility conflicts at Capitol St, sink holes at Donner Way and Villa St, and emergency work at Park St.
$194,057.13
Total $439,857.13
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In addition to CCOs 1-3, additional extra work was authorized pursuant to Salinas Municipal Code Section 12-03.08. – Emergency Purchases, “In the case of emergency affecting the public's health and safety, the Purchasing Agent and City Manager are authorized to purchase supplies, materials, equipment, or contractual services required for such emergency, without regard to amount limitation or prior approval of the City Council”. The extra work included the removal/replacement of additional 310 linear feet of deteriorated pipe with sag at Riker Street (north towards Clay Street), including reconnection of existing sewer laterals (10 each) to the new sewer pipe; repair of a broken 10-inch pipe at the intersection of Clay Street and Lincoln Avenue; and repair of a sinkhole at Eisenhower Street. The extra work was authorized to avoid potential health and safety hazards and potential liability for the City if immediate action was not taken.

Sierra Construction was selected based on their immediate availability and expertise, and current contract with the City.

Overages of quantities for Bid Item #6 (Concrete Pavement Removal and Disposal) and Bid Item #D1 (Concrete Pavement Replacement) are also still outstanding. Final invoices for all extra work have not been received yet but the total extra work including the overages is estimated at $280,000.

The approved contingency for this project is $502,826 (15%). With the payment of CCOs 2 and 3, the remaining project contingency is currently $62,968. Therefore, staff is requesting an increase to the project contingency in the amount of $217,100 for a total construction contingency of $719,926 (21.48%).

CEQA CONSIDERATION:

This project has been reviewed in accordance with the California Environmental Quality Act (CEQA) Guidelines and has been determined to be Categorically Exempt in accordance with Section 15301 (Class 1) because the project involves the maintenance of existing public facilities/utilities with no expansion of use.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No. This project was advertised and competitively bid.

STRATEGIC PLAN INITIATIVE:

The project addresses the City Council’s Strategic Goals of Infrastructure, Public Safety, and Economic Development by repairing/improving segments of the sanitary sewer pipeline system at various locations throughout the city.

DEPARTMENTAL COORDINATION:

The process of administering this project involves Public Works, Finance, and Legal Departments.

Public Works Department coordinated the preparation of the project plans, specifications, and estimates, and also administered the bidding/advertisement process, and manages/performs contract administration, and inspection of this project during construction. Finance Department manages the proper disbursement of funds, and Legal Department reviews pertinent documents/contracts to ensure compliance with applicable laws and regulations. Thus, staff from these Departments are involved with the development and execution of this project.

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FISCAL AND SUSTAINABILITY IMPACT:

There is no impact to the General Fund for this project. The additional fund requested is from Sewer Fund Balance (Fund 6400).

Fund General Ledger Number
(Operating/CIP)
General Ledger Account
Name
Remaining Budget
Appropriation
Amount Requested
6400 50.9010-66.4000 Sewer $0 $217,100
ATTACHMENT:

Resolution

RESOLUTION NO. (N.C.S.)

A RESOLUTION TO INCREASE PROJECT CONTIGENCY FOR SANITARY SEWER SPOT REPAIR AND IMPROVEMENTS; CIP 9010
WHEREAS, on August 20, 2024, the Sanitary Sewer Spot Repair and Improvements project was awarded to Sierra Construction & Excavation, Inc. through Resolution No. 23073; and WHEREAS, several issues have been encountered after the project start of construction that resulted in three Contract Change Orders (CCOs); and WHEREAS, additional extra work were authorized pursuant to Salinas Municipal Code Section 12-03.08. – Emergency Purchases, “In the case of emergency affecting the public's health and safety, the Purchasing Agent and City Manager are authorized to purchase supplies, materials, equipment, or contractual services required for such emergency, without regard to amount limitation or prior approval of the City Council”; and
WHEREAS, extra work was authorized to avoid potential health and safety hazards and potential liability for the City if immediate action was not taken; and WHEREAS, Sierra Construction was selected based on their immediate availability and expertise, and current contract with the City, and the necessary repair work was beyond the capabilities of City staff.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council approves a transfers of $217,100 from Sewer Fund (Fund 6400) to the CIP No. 9010 (Sanitary Sewer Spot Repair and Improvements) is hereby approved; and
BE IT FURTHER RESOLVED that the Salinas City Council approves an increase to the project contingency in the amount of $217,100 for a total project contingency of $719,926 (21.48%) for the Sanitary Sewer Spot Repair and Improvements; CIP 9010.

PASSED AND APPROVED this 26th day of May 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
________________________
Dennis Donohue, Mayor

ATTEST:
_________________________
Patricia M. Soratos, City Clerk
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#26-207, Version: 1
CalRecycle Rubberized Asphalt Grant Acceptance
Approve a Resolution authorizing the acceptance of CalRecycle funds in the amount of $216,120; the adoption of a new CIP account named “Bike Path Improvements” and the adoption of the 2025-26 Appropriation and Funding Sources in the Capital Improvement Program.

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CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: JUNE 2, 2026
DEPARTMENT: PUBLIC WORKS DEPARTMENT
FROM: DAVID JACOBS, P.E, P.L.S, PUBLIC WORKS DIRECTOR
BY: VICTORIA GUTIERREZ, JUNIOR ENGINEER
ADRIANA ROBLES, P.E, CFM, CITY ENGINEER
TITLE: CALRECYCLE RUBBERIZED ASPHALT GRANT

ACCEPTANCE
RECOMMENDED MOTION:

A motion to approve a Resolution authorizing:

1. The acceptance of CalRecycle funds in the amount of $216,120;

2. The establishment of a new CIP project: “Bike Path Improvements”;

3. The adoption of the following 2025-26 Appropriation and Funding Sources in the Capital Improvement Program:
a. Increase the estimated revenue from State Government appropriation by $216,120; and
b. Establish the expenditure appropriation by $216,120 for a Bike Path Improvements CIP.

EXECUTIVE SUMMARY:

On December 11, 2025, the California Department of Resources Recycling and Recovery (CalRecycle) awarded the City of Salinas a Rubberized Pavement Grant in the amount of $216,120. The grant funds will be allocated to provide financial assistance for the upcoming Bike Path Improvements Project. City staff recommends acceptance of the CalRecycle grant funds in the amount of $216,120, establishment of a new CIP, increase the estimated revenue by $216,120, and increase funding for CIP.

BACKGROUND:

On December 13, 2022, City Council approved Resolution No. 22544 authorizing the submission of applications to the California Department of Resources Recycling and Recovery (CalRecycle) grants/payment programs and authorized the City Manager or designee as the signature authority to execute all documents necessary to implement and secure funding.

Page | 2
CalRecycle administers various grants and payment programs in an effort to reduce, recycle, and reuse solid waste generated in the state. On September 9, 2025, City staff applied to CalRecycle’s Rubberized Asphalt Grant Program. The program goal is to decrease the adverse environmental impacts created by unlawful disposal and stockpiling of waste rubber tires by reimbursing local agencies to incorporate rubberized asphalt concrete in paving projects.

Rubberized asphalt concrete is a proven road paving material that is created by blending ground rubber from tires with asphalt binder and other conventional aggregate materials. Rubberized asphalt concrete is a durable/flexible material that is low maintenance and resilient.

On December 11, 2025, CalRecycle approved funding for the City in the amount of $216,120. The grant funds will be allocated to provide financial assistance for the upcoming Bike Path Improvements Project which will include bike paths throughout the City as well as parks that have asphalt walkways. A map of the locations is provided in Attachment A.

City staff recommends approving a resolution to accept the CalRecycle funds in the amount of $216,120; Adoption of a new CIP, Increase the estimated revenue from State Government appropriation by $216,120; and Increase funding, by the grant amount, for the CIP.

CEQA CONSIDERATION:

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

In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No, Government Code §84308/Levine Act does not apply to this item.

STRATEGIC PLAN INITIATIVE:

This item relates to the Council’s Goal of Infrastructure by investing in the condition of bike paths and parks.

DEPARTMENTAL COORDINATION:

Public Works staff and the City Manager have worked together to receive this grant as the City Manager or designee is authorized to execute documents for this grant.

Page | 3
FISCAL AND SUSTAINABILITY IMPACT:

The proposed funding from the CalRecycle Rubberized Asphalt Grant is $216,120 and will be utilized to fund improvements as described in this report. No matching funds are required to receive these grant funds and there is no anticipated impact to the City’s General Fund budget.

Fund General Ledger Number
(Operating/CIP)
General Ledger Account
Name
Remaining Budget
Appropriation
Amount Requested
5201 New Bike Path Improvements $0 $216,120
5201 55.5322 Intergovernmental Other
State Grant & Reimb
$0 $216,120
ATTACHMENTS:

Resolution
Grant Agreement Cover Sheet
Attachment A
Page | 1
RESOLUTION NO. _____ (N.C.S.)

A RESOLUTION ACCEPTING FUNDS FROM THE CALRECYCLE RUBBERIZED

PAVEMENT GRANT PROGRAM
WHEREAS, on December 13, 2022, the City Council approved Resolution No. 22544 authorizing the submission of applications to CalRecycle for grants and payment programs; and WHEREAS, CalRecycle administers various grants and payment programs in their efforts to reduce, recycle, and reuse solid waste generated in the state; and WHEREAS, on September 9, 2025, City staff applied to CalRecycle’s Rubberized Pavement Grant Program; and
WHEREAS, on December 11, 2025, CalRecycle approved funding for the City in the amount of $216,120.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council accepts grant funds from CalRecycle in the amount of $216,120; and
BE IT FURTHER RESOLVED that a new CIP project called “Bike Path Improvements” is hereby established; and
BE IT FURTHER RESOLVED that the Salinas City Council adopts the following 2025- 26 Appropriation and Funding Sources in the Capital Improvement Program:
a. Increase the estimated revenue from State Government appropriation by $216,120; and
b. Establish the expenditure appropriation by $216,120 for a Bike Path Improvements CIP.

PASSED AND APPROVED this 2
nd day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:

Page | 2
_________________________
Patricia M. Soratos, City Clerk

TRP18-25-0066
City of Salinas

State of California - California Environmental
Protection Agency
CalRecycle 110 (Rev 10/19)

Department of Resources Recycling and
Recovery (CalRecycle)

Grant Agreement Cover Sheet

Grant Number

TRP18-25-0066

Name of Grant Program

2025-26 Rubberized Pavement Grant Program

Grantee Name

City of Salinas

Taxpayer's Federal Employer Identification Number

94-6000442

Total Grant not to Exceed

$216,120.00

Start of Grant Term

Notice to Proceed Email Date

End of Grant Term

April 01, 2028

The Department of Resources Recycling and Recovery (CalRecycle) and City of Salinas (the “Grantee”), in mutual consideration of the promises made herein, agree to comply with the provisions of this Agreement, which consists of this Grant Agreement Cover Sheet and the following Exhibits, which are incorporated by this reference and made a part of this Agreement as if attached hereto:

Exhibit A – Terms and Conditions
Exhibit B – Procedures and Requirements
Exhibit C – Application with revisions, if any, and any amendments

This Agreement is of no force or effect until signed by both parties. Grantee shall not commence performance until it receives written approval from CalRecycle. In witness whereof, the parties hereto have executed this Agreement as of the dates entered below.

TRP18-25-0066
City of Salinas

Department/Grantor Name Grantee Name
CalRecycle City of Salinas
Signature of CalRecycle’s Authorized
Signatory
Signature of Grantee’s Authorized Signatory
(as authorized in Resolution, Letter of
Commitment, or Letter of Designation)
X
Printed Name of CalRecycle’s Authorized
Signatory
Printed Name of Grantee’s Authorized
Signatory
Lu Saephanh
Title Title
Deputy Director, CalRecycle
Date Date

Grantee Payment Address
City of Salinas
200 Lincoln Ave
Salinas, CA 93901

Revised Grantee Payment Address (if needed)

03/06/2026 03/02/2026
City Manager
Rene Mendez
Rene Mendez Digitally signed by Rene Mendez Lu Saephanh Date: 2026.03.02 10:24:52 -08'00' Digitally signed by Lu Saephanh
Date: 2026.03.06 12:03:36 -08'00'

TRP18-25-0066
City of Salinas
Certification of Funding
Amount Encumbered by
this Agreement
Prior Amount Encumbered for
this Agreement
Total Amount
Encumbered to Date
$216,120.00 $216,120.00

Grant Year/Program Chapter Statute Year
2025-26 Rubberized
Pavement Grant Program
4 2025
Org Code Reference Fund
3970 0011 0226

Enactment Year Fiscal Year Fund Title
2025 2025-26 TIRE

Fi$Cal Expenditure Information

Reporting Structure Program (PGM-SUB-TSK) Account/Alt Account 39705330 3700000213 5340580

I hereby certify upon my own personal knowledge that budgeted funds are available for the period and purpose of the expenditure stated above.

Signature of CalRecycle Budget Office Date
Jacqueline Fulkerson  Digitally signed by Jacqueline Fulkerson Date: 2026.01.16 13:48:56 -08'00'

L OJECT
======~~OCATION MAP

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0 NATIVIDAD CREEK PARK
8 BARDIN RD TRAIL
0 EL GABILAN PARK
0 MAPLE PLAYGROUND
0 MISSION PARK
® WOODSIDE PARK

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0 LAUREL HEIGHTS PARK
0 Q ROSSI RICO PARKWAY
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@ NORTHGATE TOT LOT
@ EL DORODO PARK
@ NATIVIDAD PARK
@ SANTA LUCIA PARK
@ CASTLETON ST TO SARATOGA DR
'13 NANTUCKET

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City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#26-211, Version: 1
3-Year License Agreement for ESRI Software Program
Approve a Resolution authorizing the Purchasing Agent to enter into a three-year license agreement with Environmental Systems Research Institute, Inc. (ESRI) in a total amount not to exceed $476,952.

City of Salinas Page 1 of 1 Printed on 5/29/2026
powered by Legistar™
Page | 1

CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: JUNE 2, 2026
DEPARTMENT: PUBLIC WORKS
FROM: DAVID JACOBS, PE, LS, PUBLIC WORKS DIRECTOR
BY: TELAT YALCIN, GIS ADMINISTRATOR
TITLE: 3-YEAR LICENSE AGREEMENT FOR ESRI SOFTWARE

PROGRAM
RECOMMENDED MOTION:

A motion to approve a resolution authorizing the Purchasing Agent to enter into a three-year license agreement with Environmental Systems Research Institute, Inc. (ESRI) in a total amount not to exceed $476,952, from September 15, 2026 to September 15, 2029.

EXECUTIVE SUMMARY:

The City implemented GIS software from ESRI in the early 2000s to support its Geographic Information Systems (GIS) operations.

The GIS Division has historically maintained annual licensing agreements with ESRI to support ongoing services. Transitioning to long-term licensing options, such as a three-year agreement, would provide a fixed annual cost over the term, reduce administrative overhead associated with annual renewals, and expand user access beyond what is available under the current licensing model.

BACKGROUND:

The City of Salinas has operated under an “à la carte” licensing model with ESRI for its Geographic Information Systems (GIS) since the early 2000s. While this model historically provided flexibility, recent changes to ESRI’s licensing structure, combined with the City’s expanding operational needs, have made it increasingly cost-volatile and difficult to sustain.

The proposed 3-Year License Agreement provides a significantly expanded quantity of software licenses, extensions, and enterprise services that would otherwise require separate purchases under the current annual subscription model. These include ArcGIS Enterprise software extension services such as ArcGIS Geostatistical Analyst, ArcGIS Network Analyst, and ArcGIS Image Server.

Page | 2
Under the current yearly subscription agreement, these services must be budgeted and purchased individually as standalone extension add-ons for each user, typically ranging from approximately $1,500 to $3,000 per license. In contrast, the proposed 3-Year License Agreement provides these services in uncapped and unlimited quantities.

Additionally, the proposed 3-Year License Agreement includes uncapped and unlimited licensing for ArcGIS Online and ArcGIS Enterprise user types, Esri application templates, and additional software extensions that currently require separate individual purchases under the existing annual licensing structure.

Table A – List of Products and Services itemizes and compares the products, licensing levels, and services included in both the current yearly subscription agreement and the proposed 3-Year License Agreement option. In September 2025, the City paid $114,641 for its annual ESRI licensing renewal. Staff recommend transitioning to ESRI’s three-year licensing option, known as the Small Government Enterprise Agreement (SGEA), to support a more predictable and costcontrolled approach.

Although the SGEA represents an initial increase over current maintenance costs, it is a strategic investment intended to avoid significantly higher future expenses. ESRI is phasing out legacy “Concurrent Use” licenses in favor of a subscription based “Named User” model. Based on internal projections, converting the City’s existing licenses individually to this new model could increase annual costs to approximately $202,300 by 2029.

The proposed SGEA provides a structured three-year cost schedule totaling $476,952, with annual payments of $137,800 in Year 1, $158,752 in Year 2, and $180,400 in Year 3, thereby mitigating the projected escalation to $202,300 annually under a standard renewal approach. In addition to cost containment, the SGEA allows for scalable access, including expanded usage for Public Safety personnel at no additional per-user cost capabilities that are not achievable under the current licensing model.

Note: The 3-year license agreement includes a one-time $2,500 Developer Bundle Subscription fee. This amount will be added to the first-year scheduled payment of $135,300, bringing the total first year cost to $137,800.

CEQA CONSIDERATION:

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

In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect Page | 3
physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

Yes.

STRATEGIC PLAN INITIATIVE:

Approval of the proposed action supports the City Council’s 2025-2028 Strategic Goal of City Services by promoting fiscal responsibility, sound financial management, and the delivery of highquality customer service.

DEPARTMENTAL COORDINATION:

This staff report has been coordinated with the City Manager’s Office and City Attorney’s Office.

FISCAL AND SUSTAINABILITY IMPACT:

Funding for ESRI software will be included as part of the budget development process.

ESRI
Fund General Ledger
Number
(Operating/CIP)
General Ledger
Account Name
Remaining
Budget
Appropriation
Amount
Requested
(FY2026-27)
n/a n/a n/a n/a n/a
ATTACHMENTS:

Resolution
ESRI Quote
Table A - List of Products and Services
Page | 1
RESOLUTION NO. (N.C.S.)

A RESOLUTION AUTHORIZING THE PURCHASING AGENT TO ENTER INTO A

THREE-YEAR TERM LICENSE AGREEMENT WITH ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC.

WHEREAS, the staff desires to replace the current annual license renewal with a 3-Year license agreement with Environmental Systems Research Institute, INC (ESRI) software.

WHEREAS, the proposed three (3) year License Agreement provides ArcGIS Enterprise extension services such as ArcGIS Geostatistical Analyst, ArcGIS Network Analyst, and ArcGIS Image Server, which currently require separate purchases and annual budgeting allocations.

WHEREAS, the proposed three (3) year License Agreement also substantially expands software licensing capacity across the ArcGIS Online and ArcGIS Enterprise platforms, providing scalable GIS capabilities, improved operational efficiency, and long-term cost savings.

WHEREAS, the three (3) year License Agreement with ESRI Software will have a not to exceed amount of $479,952, paid in annual payments from September 15, 2026 to September 15, 2029.

NOW, THEREFORE, BE IT RESOLVED that pursuant to Salinas Municipal Code section 12-27 the Salinas City Council hereby authorizes the Purchasing Agent to complete the purchase of ESRI Software for a three-year term, paid in annual payments, in a total amount not to exceed $476,952, from September 15, 2026, to September 15, 2029.

PASSED AND APPROVED this 2
th day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Page | 2
Patricia M. Soratos, City Clerk
Quotation # Q-574173
Date: May 12, 2026
Environmental Systems Research Institute, Inc.
380 New York St
Redlands, CA 92373-8100
Phone: (909) 793-2853
DUNS Number: 06-313-4175 CAGE Code: 0AMS3
Customer # 8985 Contract # ENTERPRISE

AGREEMENT
City of Salinas
Public Works
200 Lincoln Ave
Salinas, CA 93901-2639
To expedite your order, please attach a copy of ATTENTION: Telat Yalcin this quotation to your purchase order. PHONE: (831) 758-7379 Quote is valid from: 5/12/2026 To: 12/8/2026 EMAIL: [email protected] Material Qty Term Unit Price Total
193209 1 Year 1 $135,300.00 $135,300.00
Populations of 150,001 to 250,000 Small Government Enterprise Agreement Annual Subscription 193209 1 Year 2 $158,752.00 $158,752.00
Populations of 150,001 to 250,000 Small Government Enterprise Agreement Annual Subscription 193209 1 Year 3 $180,400.00 $180,400.00
Populations of 150,001 to 250,000 Small Government Enterprise Agreement Annual Subscription 165598 1 $2,500.00 $2,500.00
ArcGIS Developer Bundle Annual Subscription
Subtotal: $476,952.00
Sales Tax: $0.00
Estimated Shipping and Handling (2 Day Delivery): $0.00 Contract Price Adjust: $0.00
Total: $476,952.00
Esri may charge a fee to cover expenses related to any customer requirement to use a proprietary vendor management, procurement, or invoice program.

For questions contact:

Michael Arias
Email:
[email protected]
Phone:
(909) 793-2853
The items on this quotation are subject to and governed by the terms of this quotation, the most current product specific scope of use document found at https://assets.esri.com/content/dam/esrisites/media/legal/product-specific-terms-of-use/e300.pdf, and your applicable signed agreement with Esri. If no such agreement covers any item quoted, then Esri’s standard terms and conditions found at https://go.esri.com/MAPS apply to your purchase of that item. If any item is quoted with a multi-year payment schedule, Esri may invoice at least 30 days in advance of each anniversary date without the issuance or a Purchase Order, and Customer is required to make all payments without right of cancellation. Third-party data sets included in a quotation as separately licensed items will only be provided and invoiced if Esri is able to provide such data and will be subject to the applicable third-party's terms and conditions. If Esri is unable to provide any such data set, Customer will not be responsible for any further payments for the data set. US Federal government entities and US government prime contractors authorized under FAR 51.1 may purchase under the terms of Esri’s GSA Federal Supply Schedule. Supplemental terms and conditions found at https://www.esri.com/en-us/legal/terms/state-supplemental apply to some US state and local government purchases. All terms of this quotation will be incorporated into and become part of any additional agreement regarding Esri’s offerings. Acceptance of this quotation is limited to the terms of this quotation. Esri objects to and expressly rejects any different or additional terms contained in any purchase order, offer, or confirmation sent to or to be sent by buyer. Unless prohibited by law, the quotation information is confidential and may not be copied or released other than for the express purpose of system selection and purchase/license. The information may not be given to outside parties or used for any other purpose without consent from Esri. Delivery is FOB Origin for customers located in the USA.

ARIASM This offer is limited to the terms and conditions incorporated and attached herein.

Quotation # Q-574173
Date: May 12, 2026
Environmental Systems Research Institute, Inc.
380 New York St
Redlands, CA 92373-8100
Phone: (909) 793-2853
DUNS Number: 06-313-4175 CAGE Code: 0AMS3
Customer # 8985 Contract # ENTERPRISE

AGREEMENT
City of Salinas
Public Works
200 Lincoln Ave
Salinas, CA 93901-2639
To expedite your order, please attach a copy of ATTENTION: Telat Yalcin this quotation to your purchase order. PHONE: (831) 758-7379 Quote is valid from: 5/12/2026 To: 12/8/2026 EMAIL: [email protected] Esri may charge a fee to cover expenses related to any customer requirement to use a proprietary vendor management, procurement, or invoice program.

For questions contact:

Michael Arias
Email:
[email protected]
Phone:
(909) 793-2853
The items on this quotation are subject to and governed by the terms of this quotation, the most current product specific scope of use document found at https://assets.esri.com/content/dam/esrisites/media/legal/product-specific-terms-of-use/e300.pdf, and your applicable signed agreement with Esri. If no such agreement covers any item quoted, then Esri’s standard terms and conditions found at https://go.esri.com/MAPS apply to your purchase of that item. If any item is quoted with a multi-year payment schedule, Esri may invoice at least 30 days in advance of each anniversary date without the issuance or a Purchase Order, and Customer is required to make all payments without right of cancellation. Third-party data sets included in a quotation as separately licensed items will only be provided and invoiced if Esri is able to provide such data and will be subject to the applicable third-party's terms and conditions. If Esri is unable to provide any such data set, Customer will not be responsible for any further payments for the data set. US Federal government entities and US government prime contractors authorized under FAR 51.1 may purchase under the terms of Esri’s GSA Federal Supply Schedule. Supplemental terms and conditions found at https://www.esri.com/en-us/legal/terms/state-supplemental apply to some US state and local government purchases. All terms of this quotation will be incorporated into and become part of any additional agreement regarding Esri’s offerings. Acceptance of this quotation is limited to the terms of this quotation. Esri objects to and expressly rejects any different or additional terms contained in any purchase order, offer, or confirmation sent to or to be sent by buyer. Unless prohibited by law, the quotation information is confidential and may not be copied or released other than for the express purpose of system selection and purchase/license. The information may not be given to outside parties or used for any other purpose without consent from Esri. Delivery is FOB Origin for customers located in the USA.

ARIASM This offer is limited to the terms and conditions incorporated and attached herein.

Quotation # Q-574173
Date: May 12, 2026
Environmental Systems Research Institute, Inc.
380 New York St
Redlands, CA 92373-8100
Phone: (909) 793-2853
DUNS Number: 06-313-4175 CAGE Code: 0AMS3
Customer # 8985 Contract # ENTERPRISE

AGREEMENT
City of Salinas
Public Works
200 Lincoln Ave
Salinas, CA 93901-2639
To expedite your order, please attach a copy of ATTENTION: Telat Yalcin this quotation to your purchase order. PHONE: (831) 758-7379 Quote is valid from: 5/12/2026 To: 12/8/2026 EMAIL: [email protected] _________________________________________________________________________________________________________________________________ If you have made ANY alterations to the line items included in this quote and have chosen to sign the quote to indicate your acceptance, you must fax Esri the signed quote in its entirety in order for the quote to be accepted. You will be contacted by your Customer Service Representative if additional information is required to complete your request.

If your organization is a US Federal, state, or local government agency; an educational facility; or a company that will not pay an invoice without having issued a formal purchase order, a signed quotation will not be accepted unless it is accompanied by your purchase order.

In order to expedite processing, please reference the quotation number and any/all applicable Esri contract number(s) (e.g. MPA, ELA, SmartBuy, GSA, BPA) on your ordering document.

BY SIGNING BELOW, YOU CONFIRM THAT YOU ARE AUTHORIZED TO OBLIGATE FUNDS FOR YOUR ORGANIZATION, AND YOU ARE AUTHORIZING ESRI TO ISSUE AN INVOICE FOR THE ITEMS INCLUDED IN THE ABOVE QUOTE IN THE AMOUNT OF $___________, PLUS SALES TAXES IF APPLICABLE. DO NOT USE THIS FORM IF YOUR ORGANIZATION WILL NOT HONOR AND PAY ESRI'S INVOICE WITHOUT ADDITIONAL AUTHORIZING PAPERWORK.

Please check one of the following:
___ I agree to pay any applicable sales tax.
___ I am tax exempt, please contact me if exempt information is not currently on file with Esri. ___________________________________________ ________________________ Signature of Authorized Representative Date
___________________________________________
Name (Please Print)
___________________________________________
Title
_________________________________________________________________________________________________________________________________ The quotation information is proprietary and may not be copied or released other than for the express purpose of system selection and purchase/license. This information may not be given to outside parties or used for any other purpose without consent from Environmental Systems Research Institute, Inc. (Esri).

Any estimated sales and/or use tax reflected on this quote has been calculated as of the date of this quotation and is merely provided as a convenience for your organization's budgetary purposes. Esri reserves the right to adjust and collect sales and/or use tax at the actual date of invoicing. If your organization is tax exempt or pays state tax directly, then prior to invoicing, your organization must provide Esri with a copy of a current tax exemption certificate issued by your state's taxing authority for the given jurisdiction.

Esri may charge a fee to cover expenses related to any customer requirement to use a proprietary vendor management, procurement, or invoice program.

For questions contact:

Michael Arias
Email:
[email protected]
Phone:
(909) 793-2853
The items on this quotation are subject to and governed by the terms of this quotation, the most current product specific scope of use document found at https://assets.esri.com/content/dam/esrisites/media/legal/product-specific-terms-of-use/e300.pdf, and your applicable signed agreement with Esri. If no such agreement covers any item quoted, then Esri’s standard terms and conditions found at https://go.esri.com/MAPS apply to your purchase of that item. If any item is quoted with a multi-year payment schedule, Esri may invoice at least 30 days in advance of each anniversary date without the issuance or a Purchase Order, and Customer is required to make all payments without right of cancellation. Third-party data sets included in a quotation as separately licensed items will only be provided and invoiced if Esri is able to provide such data and will be subject to the applicable third-party's terms and conditions. If Esri is unable to provide any such data set, Customer will not be responsible for any further payments for the data set. US Federal government entities and US government prime contractors authorized under FAR 51.1 may purchase under the terms of Esri’s GSA Federal Supply Schedule. Supplemental terms and conditions found at https://www.esri.com/en-us/legal/terms/state-supplemental apply to some US state and local government purchases. All terms of this quotation will be incorporated into and become part of any additional agreement regarding Esri’s offerings. Acceptance of this quotation is limited to the terms of this quotation. Esri objects to and expressly rejects any different or additional terms contained in any purchase order, offer, or confirmation sent to or to be sent by buyer. Unless prohibited by law, the quotation information is confidential and may not be copied or released other than for the express purpose of system selection and purchase/license. The information may not be given to outside parties or used for any other purpose without consent from Esri. Delivery is FOB Origin for customers located in the USA.

ARIASM This offer is limited to the terms and conditions incorporated and attached herein.

Esri Use Only:

Cust. Name
Cust. #
PO #
Esri Agreement #

SMALL ENTERPRISE AGREEMENT

COUNTY AND MUNICIPALITY GOVERNMENT
(E214-6)
This Agreement is by and between the organization identified in the Quotation (“Customer”) and Environmental Systems Research Institute, Inc. (“Esri”).

This Agreement sets forth the terms for Customer’s use of Products and incorporates by reference (i) the Quotation and (ii) the Master Agreement. Should there be any conflict between the terms and conditions of the documents that comprise this Agreement, the order of precedence for the documents shall be as follows: (i) the Quotation, (ii) this Agreement, and (iii) the Master Agreement. This Agreement shall be governed by and construed in accordance with the laws of the state in which Customer is located without reference to conflict of laws principles, and the United States of America federal law shall govern in matters of intellectual property. The modifications and additional rights granted in this Agreement apply only to the Products listed in Table A.

Table A
List of Products
Uncapped Quantities (annual subscription)
ArcGIS Enterprise Software and Extensions
ArcGIS Enterprise (Advanced and Standard)
ArcGIS Monitor
ArcGIS Enterprise Extensions: ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Geostatistical Analyst, ArcGIS
Network Analyst, ArcGIS Data Reviewer
ArcGIS Enterprise Additional Capability Servers
ArcGIS Image Server
ArcGIS Online User Types
ArcGIS Online Viewer User Type
ArcGIS Enterprise User Types
ArcGIS Enterprise Viewer User Type
Capped Quantities (annual subscription)
ArcGIS Online User Types ArcGIS Enterprise User Types
ArcGIS Online Contributor User Type 100 ArcGIS Enterprise Contributor User Type 100 ArcGIS Online Mobile Worker User Type 300 ArcGIS Enterprise Mobile Worker User Type 300 ArcGIS Online Creator User Type 300 ArcGIS Enterprise Creator User Type 300 ArcGIS Online Professional User Type 70 ArcGIS Enterprise Professional User Type 70 ArcGIS Online Professional Plus User Type 70 ArcGIS Enterprise Professional Plus User Type 70 ArcGIS Pro (Add-on Apps) for ArcGIS Online Creator or
Professional User Type
ArcGIS Pro (Add-on Apps) for ArcGIS Enterprise
Creator or Professional User Type
ArcGIS 3D Analyst, ArcGIS Data Reviewer,
ArcGIS Geostatistical Analyst, ArcGIS Network
Analyst, ArcGIS Publisher, ArcGIS Spatial
Analyst, ArcGIS Workflow Manager, ArcGIS
Image Analyst
70 each
ArcGIS 3D Analyst, ArcGIS Data Reviewer,
ArcGIS Geostatistical Analyst, ArcGIS Network
Analyst, ArcGIS Publisher, ArcGIS Spatial
Analyst, ArcGIS Workflow Manager, ArcGIS
Image Analyst
70 each
ArcGIS Online Apps and Other ArcGIS Enterprise Apps and Other ArcGIS Location Sharing for ArcGIS Online 70 ArcGIS Location Sharing for ArcGIS Enterprise 70 ArcGIS Online Service Credits 175,000 ArcGIS Advanced Editing User Type Extension for ArcGIS Enterprise 100
Other Benefits
Number of Esri User Conference registrations provided annually 5 Number of Tier 1 Help Desk individuals authorized to call Esri 5 Five percent (5%) discount on all individual commercially available instructor-led training classes at Esri facilities purchased outside this Agreement

Customer may accept this Agreement by signing and returning the whole Agreement with (i) the Quotation attached, (ii) a purchase order, or (iii) another document that matches the Quotation and references this Agreement (“Ordering Document”). ADDITIONAL OR CONFLICTING TERMS IN CUSTOMER’S PURCHASE

ORDER OR OTHER DOCUMENT WILL NOT APPLY, AND THE TERMS OF THIS AGREEMENT WILL GOVERN. This Agreement is effective as of the date of Esri’s receipt of an Ordering Document, unless otherwise agreed to by the parties (“Effective Date”).

Term of Agreement: Three (3) years
This Agreement supersedes any previous agreements, proposals, presentations, understandings, and arrangements between the parties relating to the licensing of the Products. Except as provided in Article 4— Product Updates, no modifications can be made to this Agreement.

Accepted and Agreed:

(Customer)
By:

Authorized Signature
Printed Name:

Title:

Date:

CUSTOMER CONTACT INFORMATION
Contact: Telephone:

Address: Fax:

City, State, Postal Code: E-mail:

Country:

Quotation Number (if applicable):

1.0—ADDITIONAL DEFINITIONS
In addition to the definitions provided in the Master
Agreement, the following definitions apply to this
Agreement:
“Case” means a failure of the Software or Online
Services to operate according to the Documentation
where such failure substantially impacts operational
or functional performance.
“Deploy”, “Deployed” and “Deployment” mean to
redistribute and install the Products and related
Authorization Codes within Customer’s
organization(s).
“Fee” means the fee set forth in the Quotation.
“Maintenance” means Tier 2 Support, Product
updates, and Product patches provided to Customer
during the Term of Agreement.
“Master Agreement” means the applicable master
agreement for Esri Products incorporated by this
reference that is (i) found at https://www.esri.com/enus/legal/terms/full-master-agreement and available in the installation process requiring acceptance by
electronic acknowledgment or (ii) a signed Esri
master agreement or license agreement that
supersedes such electronically acknowledged
master agreement.
“Product(s)” means the products identified in
Table A—List of Products and any updates to the list
Esri provides in writing.
“Quotation” means the offer letter and quotation
provided separately to Customer.
“Technical Support” means the technical
assistance for attempting resolution of a reported
Case through error correction, patches, hot fixes,
workarounds, replacement deliveries, or any other
type of Product corrections or modifications.
“Tier 1 Help Desk” means Customer’s point of
contact(s) to provide all Tier 1 Support within
Customer’s organization(s).
“Tier 1 Support” means the Technical Support
provided by the Tier 1 Help Desk.
“Tier 2 Support” means the Esri Technical Support
provided to the Tier 1 Help Desk when a Case
cannot be resolved through Tier 1 Support.

2.0—ADDITIONAL GRANT OF LICENSE

2.1 Grant of License. Subject to the terms and
conditions of this Agreement, Esri grants to
Customer a personal, nonexclusive,
nontransferable license solely to use, copy, and
Deploy quantities of the Products listed in
Table A—List of Products for the Term of
Agreement (i) for the applicable Fee and (ii) in
accordance with the Master Agreement.

2.2 Consultant Access. Esri grants Customer the
right to permit Customer’s consultants or
contractors to use the Products exclusively for
Customer’s benefit. Customer will be solely
responsible for compliance by consultants and
contractors with this Agreement and will ensure
that the consultant or contractor discontinues
use of Products upon completion of work for
Customer. Access to or use of Products by
consultants or contractors not exclusively for
Customer’s benefit is prohibited. Customer may
not permit its consultants or contractors to install
Software or Data on consultant, contractor, or
third-party computers or remove Software or
Data from Customer locations, except for the
purpose of hosting the Software or Data on
Contractor servers for the benefit of Customer.

3.0—TERM, TERMINATION, AND EXPIRATION

3.1 Term. This Agreement and all licenses
hereunder will commence on the Effective Date
and continue for the duration identified in the
Term of Agreement, unless this Agreement is
terminated earlier as provided herein. Customer
is only authorized to use Products during the
Term of Agreement. For an Agreement with a
limited term, Esri does not grant Customer an
indefinite or a perpetual license to Products.

3.2 No Use upon Agreement Expiration or
Termination. All Product licenses, all
Maintenance, and Esri User Conference
registrations terminate upon expiration or
termination of this Agreement.

3.3 Termination for a Material Breach. Either party
may terminate this Agreement for a material
breach by the other party. The breaching party
will have thirty (30) days from the date of written
notice to cure any material breach.

3.4 Termination for Lack of Funds. For an
Agreement with government or government-

owned entities, either party may terminate this
Agreement before any subsequent year if
Customer is unable to secure funding through
the legislative or governing body’s approval
process.

3.5 Follow-on Term. If the parties enter into
another agreement substantially similar to this
Agreement for an additional term, the effective
date of the follow-on agreement will be the day
after the expiration date of this Agreement.

4.0—PRODUCT UPDATES

4.1 Future Updates. Esri reserves the right to
update the list of Products in Table A—List of
Products by providing written notice to
Customer. Customer may continue to use all
Products that have been Deployed, but support
and upgrades for deleted items may not be
available. As new Products are incorporated into
the standard program, they will be offered to
Customer via written notice for incorporation into
the Products schedule at no additional charge.

Customer’s use of new or updated Products
requires Customer to adhere to applicable
additional or revised terms and conditions in the
Master Agreement.

4.2 Product Life Cycle. During the Term of
Agreement, some Products may be retired or
may no longer be available to Deploy in the
identified quantities. Maintenance will be subject
to the individual Product Life Cycle Support
Status and Product Life Cycle Support Policy,
which can be found at
https://support.esri.com/en/otherresources/product-life-cycle. Updates for Products in the mature and retired phases may
not be available. Customer may continue to use
Products already Deployed, but Customer will
not be able to Deploy retired Products.

5.0—MAINTENANCE
The Fee includes standard maintenance benefits
during the Term of Agreement as specified in the
most current applicable Esri Maintenance and
Support Program document (found at
https://www.esri.com/enus/legal/terms/maintenance). At Esri’s sole discretion, Esri may make patches, hot fixes, or
updates available for download. No Software other
than the defined Products will receive Maintenance.

Customer may acquire maintenance for other
Software outside this Agreement.
a. Tier 1 Support

1. Customer will provide Tier 1 Support
through the Tier 1 Help Desk to all
Customer’s authorized users.

2. The Tier 1 Help Desk will be fully trained in
the Products.

3. At a minimum, Tier 1 Support will include
those activities that assist the user in
resolving how-to and operational questions
as well as questions on installation and
troubleshooting procedures.

4. The Tier 1 Help Desk will be the initial point
of contact for all questions and reporting of a
Case. The Tier 1 Help Desk will obtain a full
description of each reported Case and the
system configuration from the user. This
may include obtaining any customizations,
code samples, or data involved in the Case.

5. If the Tier 1 Help Desk cannot resolve the
Case, an authorized Tier 1 Help Desk
individual may contact Tier 2 Support. The
Tier 1 Help Desk will provide support in such
a way as to minimize repeat calls and make
solutions to problems available to
Customer’s organization.

6. Tier 1 Help Desk individuals are the only
individuals authorized to contact Tier 2
Support. Customer may change the Tier 1
Help Desk individuals by written notice to
Esri.
b. Tier 2 Support

1. Tier 2 Support will log the calls received
from Tier 1 Help Desk.

2. Tier 2 Support will review all information
collected by and received from the Tier 1
Help Desk including preliminary documented
troubleshooting provided by the Tier 1 Help
Desk when Tier 2 Support is required.

3. Tier 2 Support may request that Tier 1 Help
Desk individuals provide verification of
information, additional information, or
answers to additional questions to

supplement any preliminary information
gathering or troubleshooting performed by
Tier 1 Help Desk.

4. Tier 2 Support will attempt to resolve the
Case submitted by Tier 1 Help Desk.

5. When the Case is resolved, Tier 2 Support
will communicate the information to Tier 1
Help Desk, and Tier 1 Help Desk will
disseminate the resolution to the user(s).

6.0—ENDORSEMENT AND PUBLICITY
This Agreement will not be construed or interpreted
as an exclusive dealings agreement or Customer’s
endorsement of Products. Either party may publicize
the existence of this Agreement.

7.0—ADMINISTRATIVE REQUIREMENTS

7.1 OEM Licenses. Under Esri’s OEM or Solution
OEM programs, OEM partners are authorized to
embed or bundle portions of Esri products and
services with their application or service. OEM
partners’ business model, licensing terms and
conditions, and pricing are independent of this
Agreement. Customer will not seek any discount
from the OEM partner or Esri based on the
availability of Products under this Agreement.

Customer will not decouple Esri products or
services from the OEM partners’ application or
service.

7.2 Annual Report of Deployments. At each
anniversary date and ninety (90) calendar days
prior to the expiration of this Agreement,
Customer will provide Esri with a written report
detailing all Deployments. Upon request,
Customer will provide records sufficient to verify
the accuracy of the annual report.

8.0—ORDERING, ADMINISTRATIVE

PROCEDURES, DELIVERY, AND

DEPLOYMENT

8.1 Orders, Delivery, and Deployment
a. Upon the Effective Date, Esri will invoice
Customer and provide Authorization Codes to
activate the nondestructive copy protection
program that enables Customer to download,
operate, or allow access to the Products. If this
is a multi-year Agreement, Esri may invoice the
Fee up to thirty (30) calendar days before the
annual anniversary date for each year.
b. Undisputed invoices will be due and payable
within thirty (30) calendar days from the date of
invoice. Esri reserves the right to suspend
Customer’s access to and use of Products if
Customer fails to pay any undisputed amount
owed on or before its due date. Esri may charge
Customer interest at a monthly rate equal to the
lesser of one percent (1.0%) per month or the
maximum rate permitted by applicable law on
any overdue fees plus all expenses of collection
for any overdue balance that remains unpaid
ten (10) days after Esri has notified Customer of
the past-due balance.
c. Esri’s federal ID number is 95-2775-732.
d. If requested, Esri will ship backup media to the
ship-to address identified on the Ordering
Document, FOB Destination, with shipping
charges prepaid. Customer acknowledges that
should sales or use taxes become due as a
result of any shipments of tangible media, Esri
has a right to invoice and Customer will pay any
such sales or use tax associated with the receipt
of tangible media.

8.2 Order Requirements. Esri does not require
Customer to issue a purchase order. Customer
may submit a purchase order in accordance with
its own process requirements, provided that if
Customer issues a purchase order, Customer
will submit its initial purchase order on the
Effective Date. If this is a multi-year Agreement,
Customer will submit subsequent purchase
orders to Esri at least thirty (30) calendar days
before the annual anniversary date for each
year.
a. All orders pertaining to this Agreement will be
processed through Customer’s centralized point
of contact.
b. The following information will be included in
each Ordering Document:
(1) Customer name; Esri customer number, if
known; and bill-to and ship-to addresses
(2) Order number
(3) Applicable annual payment due

9.0—MERGERS, ACQUISITIONS, OR

DIVESTITURES
If Customer is a commercial entity, Customer will
notify Esri in writing in the event of (i) a
consolidation, merger, or reorganization of Customer
with or into another corporation or entity;
(ii) Customer’s acquisition of another entity; or (iii) a transfer or sale of all or part of Customer’s
organization (subsections i, ii, and iii, collectively
referred to as “Ownership Change”). There will be
no decrease in Fee as a result of any Ownership
Change.

9.1 If an Ownership Change increases the
cumulative program count beyond the maximum
level for this Agreement, Esri reserves the right
to increase the Fee or terminate this Agreement
and the parties will negotiate a new agreement.

9.2 If an Ownership Change results in transfer or
sale of a portion of Customer’s organization, that
portion of Customer’s organization will transfer
the Products to Customer or uninstall, remove,
and destroy all copies of the Products.

9.3 This Agreement may not be assigned to a
successor entity as a result of an Ownership
Change unless approved by Esri in writing in
advance. If the assignment to the new entity is
not approved, Customer will require any
successor entity to uninstall, remove, and
destroy the Products. This Agreement will
terminate upon such Ownership Change.

Section Subsection Product and Services
Uncapped Quantities ArcGIS Enterprise Software and Extensions ArcGIS 3D Analyst ArcGIS Data Reviewer
ArcGIS Enterprise (Advanced and Standard)
ArcGIS Geostatistical Analyst
ArcGIS Monitor
ArcGIS Network Analyst
ArcGIS Spatial Analyst
ArcGIS Enterprise Additional Capability Servers ArcGIS Image Server ArcGIS Online User Types ArcGIS Online Viewer User Type ArcGIS Enterprise User Types ArcGIS Enterprise Viewer User Type Capped Quantities ArcGIS Online User Types ArcGIS Online Contributor User Type ArcGIS Online Creator User Type
ArcGIS Online Mobile Worker User Type
ArcGIS Online Professional Plus User Type
ArcGIS Online Professional User Type
ArcGIS Enterprise User Types ArcGIS Enterprise Contributor User Type ArcGIS Enterprise Creator User Type
ArcGIS Enterprise Mobile Worker User Type
ArcGIS Enterprise Professional Plus User Type
ArcGIS Enterprise Professional User Type
ArcGIS Online Apps and Other ArcGIS Location Sharing for ArcGIS Online ArcGIS Online Service Credits
ArcGIS Enterprise Apps and Other ArcGIS Advanced Editing User Type Extension for ArcGIS Enterprise ArcGIS Location Sharing for ArcGIS Enterprise
ArcGIS Pro Add-on Apps for ArcGIS Online Creator or Professional User Type ArcGIS 3D Analyst
ArcGIS Data Reviewer
ArcGIS Geostatistical Analyst
ArcGIS Image Analyst
ArcGIS Network Analyst
ArcGIS Publisher
ArcGIS Spatial Analyst
ArcGIS Workflow Manager
ArcGIS Pro Add-on Apps for ArcGIS Enterprise Creator or Professional User Type ArcGIS 3D Analyst
ArcGIS Data Reviewer
ArcGIS Geostatistical Analyst
ArcGIS Image Analyst
ArcGIS Network Analyst
ArcGIS Publisher
ArcGIS Spatial Analyst
ArcGIS Workflow Manager
Other Benefits Esri User Conference registrations provided annually Tier 1 Help Desk individuals authorized to call Esri
5% discount on individual instructor-led Esri classes
Proposed Quantity Existing Quantity
Unlimited 0
Unlimited 0
Unlimited 3
Unlimited 0
Unlimited 0
Unlimited 1
Unlimited 2
Unlimited 1
Unlimited 0
Unlimited Unlimited
100 0
30 20
300 22
70 1
70 19
100 60
300 10
300 0
70 10
70 9
70 0
175000 20300
100 36
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
5 5
5 0
(blank)
Section
Uncapped Quantities
Uncapped Quantities
Uncapped Quantities
Uncapped Quantities
Uncapped Quantities
Uncapped Quantities
Uncapped Quantities
Uncapped Quantities
Uncapped Quantities
Uncapped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Capped Quantities
Other Benefits
Other Benefits
Other Benefits
Subsection
ArcGIS Enterprise Software and Extensions
ArcGIS Enterprise Software and Extensions
ArcGIS Enterprise Software and Extensions
ArcGIS Enterprise Software and Extensions
ArcGIS Enterprise Software and Extensions
ArcGIS Enterprise Software and Extensions
ArcGIS Enterprise Software and Extensions
ArcGIS Enterprise Additional Capability Servers
ArcGIS Online User Types
ArcGIS Enterprise User Types
ArcGIS Online User Types
ArcGIS Online User Types
ArcGIS Online User Types
ArcGIS Online User Types
ArcGIS Online User Types
ArcGIS Enterprise User Types
ArcGIS Enterprise User Types
ArcGIS Enterprise User Types
ArcGIS Enterprise User Types
ArcGIS Enterprise User Types
ArcGIS Pro Add-on Apps for ArcGIS Online Creator or Professional User Type ArcGIS Pro Add-on Apps for ArcGIS Online Creator or Professional User Type ArcGIS Pro Add-on Apps for ArcGIS Online Creator or Professional User Type ArcGIS Pro Add-on Apps for ArcGIS Online Creator or Professional User Type ArcGIS Pro Add-on Apps for ArcGIS Online Creator or Professional User Type ArcGIS Pro Add-on Apps for ArcGIS Online Creator or Professional User Type ArcGIS Pro Add-on Apps for ArcGIS Online Creator or Professional User Type ArcGIS Pro Add-on Apps for ArcGIS Online Creator or Professional User Type ArcGIS Pro Add-on Apps for ArcGIS Enterprise Creator or Professional User Type ArcGIS Pro Add-on Apps for ArcGIS Enterprise Creator or Professional User Type ArcGIS Pro Add-on Apps for ArcGIS Enterprise Creator or Professional User Type ArcGIS Pro Add-on Apps for ArcGIS Enterprise Creator or Professional User Type ArcGIS Pro Add-on Apps for ArcGIS Enterprise Creator or Professional User Type ArcGIS Pro Add-on Apps for ArcGIS Enterprise Creator or Professional User Type ArcGIS Pro Add-on Apps for ArcGIS Enterprise Creator or Professional User Type ArcGIS Pro Add-on Apps for ArcGIS Enterprise Creator or Professional User Type ArcGIS Online Apps and Other
ArcGIS Online Apps and Other
ArcGIS Enterprise Apps and Other
ArcGIS Enterprise Apps and Other
Products and Services
ArcGIS Enterprise (Advanced and Standard)
ArcGIS Monitor
ArcGIS 3D Analyst
ArcGIS Spatial Analyst
ArcGIS Geostatistical Analyst
ArcGIS Network Analyst
ArcGIS Data Reviewer
ArcGIS Image Server
ArcGIS Online Viewer User Type
ArcGIS Enterprise Viewer User Type
ArcGIS Online Contributor User Type
ArcGIS Online Mobile Worker User Type
ArcGIS Online Creator User Type
ArcGIS Online Professional User Type
ArcGIS Online Professional Plus User Type
ArcGIS Enterprise Contributor User Type
ArcGIS Enterprise Mobile Worker User Type
ArcGIS Enterprise Creator User Type
ArcGIS Enterprise Professional User Type
ArcGIS Enterprise Professional Plus User Type
ArcGIS 3D Analyst
ArcGIS Data Reviewer
ArcGIS Geostatistical Analyst
ArcGIS Network Analyst
ArcGIS Publisher
ArcGIS Spatial Analyst
ArcGIS Workflow Manager
ArcGIS Image Analyst
ArcGIS 3D Analyst
ArcGIS Data Reviewer
ArcGIS Geostatistical Analyst
ArcGIS Network Analyst
ArcGIS Publisher
ArcGIS Spatial Analyst
ArcGIS Workflow Manager
ArcGIS Image Analyst
ArcGIS Location Sharing for ArcGIS Online
ArcGIS Online Service Credits
ArcGIS Location Sharing for ArcGIS Enterprise
ArcGIS Advanced Editing User Type Extension for ArcGIS Enterprise Esri User Conference registrations provided annually
Tier 1 Help Desk individuals authorized to call Esri
5% discount on individual instructor-led Esri classes
Proposed Quantity Existing Quantity
Unlimited 3
Unlimited 0
Unlimited 0
Unlimited 2
Unlimited 0
Unlimited 1
Unlimited 0
Unlimited 1
Unlimited 0
Unlimited Unlimited
100 0
300 22
30 20
70 19
70 1
100 60
300 0
300 10
70 9
70 10
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
70 0
175000 20,300
70 0
100 36
5 5
5 0
Notes
We are on "Standard" tier and have 5 authorized callers City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#26-216, Version: 1
Master Agreement for the use of Regional Transportation Funds Approve a Resolution authorizing the City Manager to execute an agreement with the Transportation Agency for Monterey County (TAMC) for the use of TAMC-administered transportation funds.

City of Salinas Page 1 of 1 Printed on 5/29/2026
powered by Legistar™
Page | 1

CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: JUNE 2, 2026
DEPARTMENT: PUBLIC WORKS DEPARTMENT
FROM: DAVID JACOBS, P.E., L.S., PUBLIC WORKS DIRECTOR
FROM: ADRIANA ROBLES, P.E., C.F.M., CITY ENGINEER

GERARDO RODRIGUEZ, ASSISTANT ENGINEER
TITLE: MASTER AGREEMENT FOR THE USE OF REGIONAL

TRANSPORATION FUNDS
RECOMMENDED MOTION:

A motion authorizing the City Manager to execute an agreement with the Transportation Agency for Monterey County (TAMC) for the use of TAMC-administered transportation funds.

EXECUTIVE SUMMARY:

The Transportation Agency for Monterey County (TAMC) administers several transportation funding programs including the Regional Surface Transportation Program (RSTP), Transportation Development Act funds (TDA), and funding from the Regional Development Impact Fee Program (RDIF). These programs provide funding for various transportation projects for TAMC’s member agencies. The Master Agreement between TAMC and the City of Salinas for the use of these regional funds is expiring. In order to continue to receive reimbursement of City costs, it is recommended the attached Master Agreement be executed by the City.

BACKGROUND:

The Transportation Agency for Monterey County (TAMC) administers several transportation funding programs including the Regional Surface Transportation Program (RSTP), Transportation Development Act funds (TDA), and funding from the Regional Development Impact Fee Program (RDIF). These programs provide funding for various transportation projects for TAMC’s member agencies. Currently, the City is working on projects that have received RSTP funding. The City receives a fair share portion of RSTP funds according to population and lane miles of city streets.

The remainder of available RSTP funds are made available through a competitive grant process.

As listed in Attachment 2 (Exhibit A of the TAMC Master Funding Agreement), RSTP Competitive funds have been awarded for the Downtown Complete Streets Improvements, Bardin Safe Routes to School Enhancement Project, Pedestrian Crossing Enhancement Project, and, most recently, Harden Parkway Path and SRTS Project. An RSTP Quick-build was awarded for the East Market Street Cycle Track Quick Build. RSTP fair share funds have been used to fund the Garner Page | 2
Avenue Bus Bulb Out. The Boronda Road Congestion Relief Project (Phase 1) has received RSTP fair share, RSTP competitive and RSTP mid-cycle funds. These various RSTP funds provided approximately $6.7 million for the Boronda Road Congestion Relief Project and over $14 million for all projects listed above.

RSTP funds are distributed by the State to regional transportation agencies. TAMC, in support of member agencies, makes portions of the fund available to member agencies for their use in local projects that support regional travel goals. The State therefore has oversight over the use of RSTP funds which are administered by TAMC. The State requires TAMC to enter into agreements with each member agency for the use of the RSTP funds. TAMC reimburses local agencies for their costs for TAMC-approved local projects. The attached list shows the Salinas Projects that have received funding from RSTP.

To continue receiving reimbursement of City costs, the Master Agreement (attached to this report) must be executed by the City. The agreement details State requirements for the use of these regional funds distributed by TAMC and includes provisions required to comply with State and Federal regulations. Existing and future projects funded by the RSTP program and other TAMCadministered funds are covered under the agreement for a three-year term.

CEQA CONSIDERATION:

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

In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No.

STRATEGIC PLAN INITIATIVE:

Funding local projects and securing funding for them supports the Council’s goals of “Public Safety” and “Infrastructure”.

DEPARTMENTAL COORDINATION:

The Public Works Department and Finance Department coordinate the use and reimbursement of RSTP funds, and other TAMC-administered funds.

Page | 3
FISCAL AND SUSTAINABILITY IMPACT:

There is no impact on the General Fund. Executing the agreement will allow the City to be reimbursed for work on eligible projects and maintain the City’s eligibility to use TAMCadministered funds.

Fund General Ledger Number
(Operating/CIP)
General Ledger Account
Name
Remaining Budget
Appropriation
Amount Requested

N/A N/A N/A N/A N/A
ATTACHMENTS:

Resolution
Attachment 1: TAMC Master Funding Agreement
Attachment 2: Exhibit A for TAMC Master Funding Agreement Page | 1
RESOLUTION NO. ______ (N.C.S.)

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN

AGREEMENT WITH THE TRANSPORTATION AGENCY FOR MONTEREY

COUNTY (TAMC) FOR THE USE OF REGIONAL TRANSPORTATION FUNDS WHEREAS, TAMC administers regional transportation funds in Monterey County including funds from the Regional Surface Transportation Program (RSTP), Transportation Development Act (TDA), Regional Development Impact Fee Program (RDIF); and WHEREAS, the City of Salinas relies on regional transportation funding for City transportation projects, including current construction projects funded by RSTP funds; and WHEREAS, each agency receiving TAMC-administered transportation funds is required to enter into a Master Agreement with TAMC in order to use said funds as required by the State of California; and
WHEREAS, the Master Agreement details State requirements for use of said transportation funds and other fiscal provisions required to comply with state and federal regulations; and
WHEREAS, the term of the Master Agreement is three years.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council authorizes the City Manager to execute a Master Agreement with TAMC and future updates of said agreement for the use of said TAMC administered funds.

PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk

AGREEMENT BETWEEN THE

TRANSPORTATION AGENCY FOR MONTEREY COUNTY

AND THE CITY OF SALINAS

FOR THE ALLOCATION OF FUNDING APPROVED BY

THE TRANSPORTATION AGENCY BOARD OF DIRECTORS
This agreement is made on _____________ by and between the City of Salinas, a public body, hereinafter referred to as “Recipient,” and the Transportation Agency for Monterey County, hereinafter referred to as “TAMC.”
WHEREAS, TAMC is the state-designated Regional Transportation Planning Agency for Monterey County; and
WHEREAS, as authorized by section 182.6(g) of the Streets and Highways Code, TAMC has entered into a separate agreement with the State of California, through the Department of Transportation (Caltrans), to assign a defined portion of its annual federal Surface Transportation Block Grant Program (STBGP) apportionment to Caltrans in exchange for state funds for specified fiscal year(s); and
WHEREAS, TAMC is authorized to use these exchanged funds (hereinafter referred to as “RSTP Exchange Funds”) to assist local agencies to promote projects which otherwise qualify for STBGP funds; and
WHEREAS, as authorized by Chapter 2, Title 21, Rule 6640 of the Transportation Development Act, one of the duties of TAMC is to administer the provisions of the Transportation Development Act in apportioning Local Transportation Funds (LTF) for the Transportation Development Act 2% (TDA 2%) program for bicycle and pedestrian projects pursuant to Article 3 of that law, and to the Cities, County, and Monterey-Salinas Transit; WHEREAS, as authorized by the Joint Powers Agreement for the Monterey County Regional Development Impact Fee Agency, TAMC is designated to administer and allocate regional development impact fee revenues (RDIF) to projects identified in the approved Strategic Expenditure Plan; and
WHEREAS, the TAMC Board of Directors has approved the allocation of funds toward the projects listed in Exhibit A; and
WHEREAS, it is contemplated by TAMC and the Recipient that the amount of funding and the projects designated in Exhibit A may change from time to time as set forth below; and WHEREAS, TAMC has requested the Monterey County Auditor-Controller to establish a separate fund for the Federal Apportionment Exchange Program and such a separate fund has been established.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, THE PARTIES HERETO AGREE AS FOLLOWS:

1. RULES FOR RSTP EXCHANGE FUNDS
A. TAMC agrees to allocate RSTP Exchange Funds paid by Caltrans under the Federal Apportionment Exchange Program only for projects as authorized under sections 133(b) and 133 (c) of Title 23, United States Code and Article XIX of the California State Constitution.

B. The Recipient agrees to use RSTP Exchange Funds only for the RSTP Exchange eligible project(s) described in Exhibit A, as approved by the TAMC Board of Directors, for the amounts awarded for each project.

2. RULES FOR TDA 2%
A. TAMC agrees to allocate TDA 2% funds under the Transportation Development Act only for projects as authorized under the Transportation Development Act Section 99234 Claims for Pedestrian and Bicycle Facilities.

B. The Recipient agrees to use TDA 2% funds only for TDA 2% eligible project(s) described in Exhibit A, as approved by the TAMC Board of Directors, for the amounts awarded for each project.

3. RULES FOR RDIF
A. TAMC agrees to allocate RDIF funds under the Joint Powers Agreement only for projects as authorized by the TAMC Board of Directors in the approved Strategic Expenditure Plan.

B. The Recipient agrees to use RDIF funds only for RDIF eligible project(s) described in Exhibit A, as approved by the TAMC Board of Directors, for the amounts awarded for each project.

4. ADMINISTRATIVE POLICIES
A. The projects described in Exhibit A, and the amounts allocated therefore, may be amended from time to time without changing the rest of this Master Agreement, by means of approval by the TAMC Board of Directors of a revised Exhibit A, which shall be designated by a date and number (e.g., “Exhibit A-1 (DATE)”).

B. The Recipient agrees to submit an annual report to TAMC by April 30 describing the progress towards completion for all projects listed in Exhibit A.

C. The Recipient agrees to mention TAMC’s role in funding the project in any press releases or media events held by the Recipient to promote a funded project.

D. TAMC agrees to reimburse the Recipient within 30 days of receipt of a completed claim form (Exhibit B) from the Recipient.

E. The Recipient agrees to cause the completion of the project(s) within three years from the date funds were awarded by the TAMC Board of Directors, as recorded in Exhibit A. Failure to complete the project(s) in a timely basis shall allow TAMC to refuse reimbursement and to reprogram such funds for other purposes.

5. COST PRINCIPLES
A. Recipient agrees to comply with Office of Management and Budget Circular A-87, Cost Principles for State and Local Government, and 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements.

B. Recipient agrees to:
(a) use Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., to determine the allowability of individual project cost items; and
(b) comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Costs Principles and Audit Requirements.

Every sub-recipient receiving funds as a contractor or sub-contractor under this AGREEMENT shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Costs Principles and Audit Requirements.

6. THIRD PARTY CONTRACTING
A. Recipient shall not award a construction contract over $10,000 or other contracts over $25,000 on the basis of a noncompetitive negotiation for work to be performed using Funds without the prior written approval of Caltrans. This provision shall not apply to professional service contracts of the type which are required to be procured in accordance with Government Code Sections 4525 (d), (e), and (f).

B. Recipient agrees that travel and per diem reimbursements and third-party contract reimbursements to subcontractors will be allowable as project costs only after those costs are incurred and paid for by the subcontractors and only if consistent with Paragraph 10, below.

C. In addition to the above, the pre-award requirements of third party contractor/ consultants with Recipient shall be consistent with Local Program Procedures as published by Caltrans.

7. ACCOUNTING SYSTEM
Recipient, its contractors and subcontractors, shall establish and maintain an accounting system and records that properly accumulate and segregate expenditures by line item.

The accounting system of Recipient, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment claims.

8. RIGHT TO AUDIT
For the purpose of determining compliance with Public Contract Code 10115, et seq. and Title 21, California Code of Regulations, Chapter 21, Section 2500 et seq., when applicable and other matters connected with the performance of the Agreement pursuant to Government Code 8546.7, Recipient shall maintain and make available for inspection all books, documents, papers, accounting records, and other evidence pertaining to the performance of the Agreement, including but not limited to, the costs of administering the Agreement. All parties shall make such materials available at their respective offices at all reasonable times during the Agreement period and for three years from the date of final payment under the Agreement. The state, State Auditor, TAMC, FHWA, or any duly authorized representative of the Federal Government shall have access to any books, records, and documents of Consultant and its certified public accountants (CPA) work papers that are pertinent to the Agreement and indirect cost rates (ICR) for audit, examinations, excerpts, and transactions, and copies thereof shall be furnished if requested. Subcontracts in excess of $25,000 shall contain this provision.

9. TRAVEL AND SUBSISTENCE
Payments to Recipient for travel and subsistence expenses of Recipient forces and/or its contractors or subcontractors, claimed for reimbursement or applied as local match credit, shall not exceed rates authorized to be paid exempt non-represented State employees under current State Department of Personnel Administration (DPA) rules. If the rates invoiced are in excess of those authorized DPA rates, then Recipient is responsible for the cost difference and any overpayments shall be reimbursed to the TAMC on demand.

10. PROJECT COMPLETION
Recipient agrees to provide to the TAMC a short report summarizing total project costs and milestones, including before and after photos of the project, for each project within sixty (60) days of completion.

11. GOVERNING LAWS
This Agreement shall be construed and enforced according to the laws of the State of California, and the parties hereby agree that the County of Monterey shall be the proper venue for any dispute arising hereunder.

12. CONFLICT OF INTEREST
Recipient warrants that it presently has no interest and shall not acquire any interest during the term of this Agreement, which would directly or indirectly conflict in any manner or to any degree with its full and complete performance of all services under this Agreement.

13. CONSTRUCTION OF AGREEMENT
The parties agree that each party has fully participated in the review and revision of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any exhibit or amendment. To that end, it is understood and agreed that this Agreement has been arrived at through negotiation, and that neither party is to be deemed the party which prepared this Agreement within the meaning of Civil Code Section 1654. Section and paragraph headings appearing herein are for convenience only and shall not be used to interpret the terms of this Agreement.

14. WAIVER
Any waiver of any term or condition hereof must be in writing. No such waiver shall be construed as a waiver of any other term or condition herein.

15. SUCCESSORS AND ASSIGNS
This Agreement and all rights, privileges, duties and obligations hereunder, to the extent assignable or delegable, shall be binding upon and inure to the benefit of the parties and their respective successors, permitted assigns and heirs.

16. TIME IS OF THE ESSENCE
The parties mutually acknowledge and agree that time is of the essence with respect to every provision hereof in which time is an element. No extension of time for performance of any obligation or act shall be deemed an extension of time for performance of any other obligation or act, nor shall any such extension create a precedent for any further or future extension.

17. EXECUTION OF AGREEMENT
Any individual executing this Agreement on behalf of an entity represents and warrants that he or she has the requisite authority to enter into this Agreement on behalf of such entity and to bind the entity to the terms and conditions hereof. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement.

18. ENTIRE AGREEMENT
This document, including all exhibits hereto, constitutes the entire agreement between the parties, and supersedes any and all prior written or oral negotiations and representations between the parties concerning all matters relating to the subject of this Agreement.

19. TERMINATION DATE
This Agreement shall remain in effect for a period of three (3) years from the date of this Agreement.
____________________________
____________________________
IN WITNESS WHEREOF, TAMC and Recipient execute this Agreement as follows:

TRANSPORTATION AGENCY FOR MONTEREY COUNTY
_____________________________
Todd Muck
Executive Director
Recipient:

CITY OF SALINAS
Date
René Mendez, City Manager Date
Approved as to Form:

Robert Brayer
TAMC Counsel
Christopher A. Callihan, City Attorney
City of Salinas
Date
Date
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#26-219, Version: 1
An Ordinance amending sections 5-05.16 and 5-05.17 of the Salinas Municipal Code to allow for an increase in the number of gambling tables operated within a licensed card room Consider adopting an ordinance amending Salinas Municipal Code sections 5-05.16 and 5-05.017 to allow for an increase in the number of gambling tables operated within a licensed card room.

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CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: JUNE 2, 2026
DEPARTMENT: ADMINISTRATION
CITY ATTORNEY’S OFFICE
FROM: RENÉ MENDEZ, CITY MANAGER
CHRISTOPHER A. CALLIHAN, CITY ATTORNEY
TITLE: AN ORDINANCE AMENDING SECTIONS 5-05.16 AND 5-05.17 OF

THE SALINAS MUNICIPAL CODE TO ALLOW FOR AN

INCREASE IN THE NUMBER OF GAMBLING TABLES

OPERATED WITHIN A LICENSED CARD ROOM
RECOMMENDED MOTION:

Consider adopting an ordinance amending Salinas Municipal Code sections 5-05.16 and 5-05.017 to allow for an increase in the number of gambling tables operated within a licensed card room.

EXECUTIVE SUMMARY:

Bankers Casino, the only cardroom currently operating within the city, has requested an amendment to the City’s cardroom ordinance to allow for an increase in the maximum number of gambling tables as authorized by a recent change in State law.

BACKGROUND:

Salinas Municipal Code section 5-06.16 limits the maximum number of allowable gambling tables per cardroom to eleven (11). Effective January 1, 2024, the California State Legislature enacted Section 19961.07 of the California Business and Professions Code through Assembly Bill 341 (AB 341). AB 341 authorizes local jurisdictions to amend an ordinance that applies only to cardrooms that operate fewer than twenty (20) tables. These cardrooms may increase their maximum number of tables by up to ten (10) additional tables above the number of tables operated by the cardroom on January 1, 2023, but only by up to two (2) tables in the first year after the ordinance takes effect and by up to two additional tables every four years thereafter.

The proposed ordinance presented for the City Council’s consideration applies to Bankers Casino as it currently operates only eleven (11) gambling tables and, if adopted, would provide for an expansion of allowable tables by two additional tables the first year following enactment (2026) and by up to two additional tables every four years thereafter, not to exceed ten additional tables Page | 2
above the number operated at the establishment on January 1, 2023. Ultimately, the proposed ordinance would provide for a total of twenty-one gambling tables.

California Business and Professions Code section 19961.1 requires that any amendment to a City ordinance related to gambling establishments be submitted to the California Department of Justice, Bureau of Gambling Control (“Bureau”) for approval prior to adoption. The proposed ordinance was submitted to the Bureau and in a letter dated May 11, 2026, the Bureau approved the proposed ordinance to move forward to the City Council for consideration. A copy of the Bureau’s letter is attached to this Report.

CEQA CONSIDERATION:

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

In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No.

STRATEGIC PLAN INITIATIVE:

Adoption of the proposed ordinance would be consistent with the CityCouncil’s goal ofsupporting and engaging an established business to improve economic growth and job creation. (City of Salinas Strategic Plan 2025-2025, Goal 1.)
DEPARTMENTAL COORDINATION:

The City Manager’s Office, City Attorney’s Office, and Police Department coordinated on this Report and proposed ordinance.

FISCAL AND SUSTAINABILITY IMPACT:

The City levies an annual Card Room Permit fee of $7,382.50 (adjusted annually), as well as an annual per-table monitoring fee of $1,000 per table. Increasing the allowed maximum gambling tables will result in increased revenues.

Additionally, amending the Municipal Code as set out in the proposed ordinance would allow for mor gambling tables which presents an opportunity for cardrooms to experience growth and Page | 3
provide job creation within the city. The City will also benefit from increased revenues and economic activity as a result of the increase in the number of gambling tables.

Fund General Ledger Number
(Operating/CIP)
General Ledger Account
Name
Remaining Budget
Appropriation
Amount Requested

N/A N/A N/A N/A N/A
ATTACHMENTS:

Proposed Ordinance
Letter from Bureau of Gambling Control dated May 11, 2026 1 of 3
ORDINANCE NO. _____ (N.C.S.)
AN ORDINANCE AMENDING SECTION 5-05.16 AND 5-05.17 OF THE SALINAS

MUNICIPAL CODE TO ALLOW FOR AN INCREASE IN THE NUMBER OF

GAMBLING TABLES OPERATED WITHIN A LICENSED CARD ROOM
City Attorney Impartial Analysis
Current Municipal Code provisions limit the maximum number of allowable gambling tables per licensed card room to eleven (11). This ordinance would allow licensed card rooms to periodically increase the number of gambling tables up to an additional ten (10) tables as set forth in state law, for up to a total of twenty-one (21) tables.

WHEREAS, effective January 1, 2024, California Business and Professions Code section 19961.07 provides that a city may allow existing card rooms operating fewer than twenty (20) tables to increase the number of tables by two (2) within the first year, and up to two (2) additional tables every four years thereafter, not to exceed ten (10) additional tables; and WHEREAS, in accordance with Business and Professions Code section 19961.1, the City submitted the proposed amendment to the California Department of Justice, Bureau of Gambling Control for review and comment. The Bureau indicated in a letter dated May 11, 2026, that the proposed amendment is permissible.

NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF SALINAS as follows:

SECTION 1. Section 5-15.16 of the Salinas Municipal Code is amended as follows (with additions in underline text and deletions in strikethrough text):

Sec. 5-05.16 - Number of card room permits and card tables limited. (a) A maximum of one card room shall be allowed to operate in the city. (b) A maximum of eleven card tables, with one dealer per table, shall be allowed to operate in the City. On or after the effective date of this ordinance, a licensed card room shall be allowed to increase the number of gaming tables operated in the card room by up to two (2) additional tables above the number of tables operated in the card room on January 1, 2023. With this increase, no more than thirteen (13) tables shall be permitted in any one card room. Thereafter, on or after each four (4) year anniversary of the effective date of this ordinance, a licensed card room shall be allowed to further increase the number of gaming tables operated in the card room by up to two (2) additional tables, not to exceed ten (10) additional tables above the number of tables operated at the licensed card room on January 1, 2023. With these subsequent increases, no more than twenty-one (21) gaming tables shall be permitted in any one card room.
2 of 3
SECTION 2. Section 5-05.17(a)(2) of the Salinas Municipal Code is amended in its entirety to read as follows:
(2) Not more than eleven tables shall be permitted in any card room. Not more than the maximum number of gaming tables permitted by Section 5-05.16(b) shall be permitted in any card room.

SECTION 3. All ordinances and parts of ordinances and all resolutions and parts of resolutions in conflict herewith are hereby repealed as of the effective date of this ordinance.

SECTION 4. Publication. The City Clerk shall cause a summary of this ordinance to be published once in a newspaper published and circulated in Salinas within fifteen (15) days after adoption. (Salinas Charter Section 11.9)
SECTION 5. CEQA Compliance. The City Council’s adoption of this ordinance is not a project subject to environmental review under the California Environmental Quality Act (CEQA Guidelines Section 15061(b)(3) because it would not have a significant effect on the environment.

Additionally, the City Council’s adoption of this ordinance is exempt because it does not meet the definition of a “project” under CEQA, pursuant to CEQA Guidelines sections 15060(c)(1) and 15378(a), because it has no potential to result in a direct or reasonably foreseeable physical change in the environment.

SECTION 6. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The Salinas City Council hereby declares that it would have passed this ordinance and each and every section, subsection, clause, and phrase thereof not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

SECTION 7. Effective Date. This ordinance will take effect thirty (30) days from and after its adoption.

PASSED AND ADOPTED this _____ day of ____________________, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
3 of 3
_________________________________
Dennis Donohue, Mayor
APPROVED AS TO FORM:
___________________________________
Christopher A. Callihan, City Attorney
ATTEST:
___________________________________
Patricia M. Soratos, City Clerk
Rob Bonta
Attorney General

BUREAU OF GAMBLING CONTROL
2450 DEL PASO ROAD, SUITE 100
SACRAMENTO, CA 95834
May 11, 2026
Via e-mail only
Christopher A. Callihan
City Attorney
City of Salinas
200 Lincoln Avenue
Salinas, CA 93901
[email protected]
Re: City of Salinas – Ordinance Amendments
Dear Mr. Callihan:

On April 6, 2026, the Department of Justice (Department), Bureau of Gambling Control (Bureau) received your email regarding the City of Salinas’s (City) proposed amendments to its Municipal Code. These proposed amendments were submitted to the Bureau for review in compliance with Business and Professions Code section 19961.1, and for the Bureau to evaluate the proposed amendments to the City’s Municipal Code in light of the restrictions and limitations contained in the Gambling Control Act (Act).0F 1 The City proposes amending sections 5-15.16 and 5-15.17 of the Municipal Code, which govern, among other things, the number of tables allowed within a gambling establishment located within the City. The Bureau offers the following comments.

1. Section 5-15.16 – Number of card room permits and card tables limited.

Section 5-15.16,1F
2 subdivision (b) currently specifies, among other things, that a maximum of eleven card tables, with one dealer per table, shall be allowed to operate in the city. The City proposes amending section 5-15.16 to allow for increases to the maximum table limit pursuant to Business and Professions Code section 19961.07. The amendment proposes the following language:
1 The Bureau previously provided a comment letter to the City on March 24, 2026, addressing a similar proposed amendment to section 5-15.16.
2 Section references are to the City’s Municipal Code unless otherwise indicated.

Christopher A. Callihan, City Attorney, City of Salinas May 11, 2026

On or after the effective date of this ordinance, a licensed card room shall be allowed to increase the number of gaming tables operated in the card room by up to two (2) additional tables above the number of tables operated in the card room on January 1, 2023. With this increase, no more than thirteen (13) tables shall be permitted in any one card room. Thereafter, on or after each four (4) year anniversary of the effective date of this ordinance, a licensed card room shall be allowed to further increase the number of gaming tables operated in the card room by up to two (2) additional tables, not to exceed ten (10) additional tables above the number of tables operated at the licensed card room on January 1, 2023. With these subsequent increases, no more than twenty-one (21) gaming tables shall be permitted in any one card room, as follows.

The City also proposes amending section 5-15.17, subdivision (a)(2) to specify that the maximum number of tables allowed shall not exceed the number allowed under section 5-

15.16, subdivision (b).

As drafted, the proposed amendment to section 5-15.16 appears to comply with the Act with respect to Business and Professions Code section 19961.07, subdivision (a)(2), and the timing of additional tables. And, the proposed amendment to section 5-15.17, subdivision (a)(2), addresses the concerns described in the Bureau’s March 24, 2026 comment letter.

While the Bureau is required to review and comment upon proposed ordinance amendments, nothing contained herein shall be construed to authorize the operation of a gambling establishment in any manner that is inconsistent with the Act or any other applicable provision of law.

If you have any questions, or wish to submit further revisions to these ordinances, please contact Analyst Vanessa Jimenez at (916) 830-9045, or by email at [email protected]. Thank you for your cooperation regarding this matter.

Sincerely,
BRENT Y. JO
Deputy Attorney General
For ROB BONTA
Attorney General
Brent Y. Jo
Digitally signed by Brent Y.

Jo
Date: 2026.05.11 14:38:56
-07'00'
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#26-220, Version: 1
Acceptance of Internet Crimes Against Children (ICAC) Grant Approve a Resolution authorizing the acceptance of the $100,000 Internet Crimes Against Children (ICAC) Grant administered by the City of San José; delegating authority to the City Manager to execute all necessary documents to effectuate the grant; and establishing the ICAC Grant expense appropriation and corresponding revenue budget up to $100,000 to support grant activities.

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CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: JUNE 2, 2026
DEPARTMENT: SALINAS POLICE DEPARTMENT
FROM: CARLOS ACOSTA, CHIEF OF POLICE
BY: VICKIE RAHMAN, MANAGEMENT ANALYST
TITLE: ACCEPTANCE OF INTERNET CRIMES AGAINST CHILDREN
(ICAC) GRANT
RECOMMENDED MOTION:

A motion to approve a Resolution:

1. Authorizing the acceptance of the $100,000 Internet Crimes Against Children (ICAC) Grant administered by the City of San José;

2. Delegating authority to the City Manager to execute all necessary documents to effectuate the grant; and

3. Establishing the ICAC Grant expense appropriation and corresponding revenue budget up to $100,000 to support grant activities.

EXECUTIVE SUMMARY:

In May 2026, the Salinas Police Department was notified by the City of San Jose of the intent to award $100,000 for training, supplies, and equipment to support the Salinas Police Department’s participation in the ICAC Task Force. The Department is requesting authorization to accept this grant funding and establish an appropriation and corresponding revenue budget to support grant activities.

BACKGROUND:

The Silicon Valley Internet Crimes Against Children (ICAC) Task Force, whose fiscal agent is San Jose Police Department, is a task force organized under the aegis of the National ICAC Task Force Program. The national program is composed of 61 regional Task Force agencies representing over 5,000 federal, state, and local law enforcement agencies dedicated to investigating, prosecuting, and developing effective responses to internet crimes against children.

The (ICAC) Task Force helps state and local law enforcement agencies develop an effective response to technology-facilitated child sexual exploitation and internet crimes against children.

This help encompasses forensic and investigative components, training and technical assistance, victim services, and community education. The ICAC program was developed in response to the Page | 2
increasing number of children and teenagers using the Internet and other technology, the proliferation of child sexual abuse images available electronically, and the heightened online activity by predators seeking unsupervised contact with potential underage victims. Because ICAC members understand that arrests alone cannot resolve the problem of technology-facilitated child sexual exploitation, the ICAC program is also dedicated to training law enforcement officers and prosecutors, as well as educating parents and youth about the potential dangers of online activity.

The California Governor’s Office of Emergency Services (Cal OES) has awarded Internet Crimes Against Children grant funds to the City of San Jose to support the Silicon Valley ICAC Task Force.

The City of San Jose has agreed to allocate a grant subaward to the City of Salinas in the amount of $100,000 to provide eligible training, supplies, and equipment in support of Salinas Police Department’s participation in the ICAC Task Force. The grant period runs from January 1, 2026, through February 28, 2027. The Resolution will authorize the acceptance of this ICAC grant and establish an appropriation and corresponding revenue budget for grant activities.

Upon approval of grant acceptance, members of the Salinas Police Department ICAC Team will evaluate needs and make decisions related to how to allocate funds for eligible training, equipment, and supplies.

CEQA CONSIDERATION:

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

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No.

STRATEGIC PLAN INITIATIVE:

Approving the proposed Resolution will support the City Council’s Strategic Plan Goal of Public Safety.

DEPARTMENTAL COORDINATION:

The Police Department will work with the Legal Department during approval, and with the Finance Department and Information Technology Department during implementation.

FISCAL AND SUSTAINABILITY IMPACT:

Fund General Ledger Number General Ledger Account Name Remaining Budget Appropriation
Amount
Requested
3183 40.7101 Training supplies and equipment $0 $100,000 3183 40.7101 55.4212 Revenue from State Office of
Emergency Svs $0 $100,000
ATTACHMENTS:

Resolution – ICAC Grant Acceptance
ICAC Grant Agreement/MOU
RESOLUTION NO. ______________ (N.C.S.)

A RESOLUTION AUTHORIZING ACCEPTANCE OF THE INTERNET

CRIMES AGAINST CHILDREN (ICAC) GRANT
WHEREAS, the Salinas Police Department (SPD) has been awarded California Office of Emergency Services (Cal OES) funds via an Internet Crimes Against Children (ICAC) grant to be administered by the City of San Jose in the amount of $100,000; and WHEREAS, the grant will fund eligible training, supplies, and equipment to support the Salinas Police Department’s participation in the Silicon Valley ICAC Task Force.

NOW THEREFORE BE IT RESOLVED that the Salinas City Council authorizes the following:

1. Acceptance of the $100,000 Internet Crimes Against Children (ICAC) Grant administered by the City of San Jose;

2. Execution of all grant-related documents by City Manager; and

3. Establishment of the ICAC Grant appropriation of up to $100,000 and corresponding revenue budget to support grant activities.

PASSED AND APPROVED this 2
nd day of June 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

____________________________
Dennis Donohue, Mayor
ATTEST:
__________________________________
Patricia M. Soratos, City Clerk
City of Salinas - Internet Crimes Against Children
1 CITY OF SAN JOSE

POLICE DEPARTMENT

GRANT AGREEMENT

SUMMARY PAGES
Grantee Name: City of Salinas
Project Name: Internet Crimes Against Children Grant Program Project Description:

The California Governor’s Office of Emergency
Services (“Cal OES”) has awarded Fiscal Year 2025
Internet Crimes Against Children grant funds to the
CITY. The purpose of the project is to ensure local law enforcement agencies in the Silicon Valley Task Force
are adequately equipped to investigate computer
crimes that target youth. This AGREEMENT will
allocate a Subaward in an amount not to exceed
$100,000 to the City of Salinas for training, supplies, and equipment.

Funding Source: Cal OES State Funds
Grant Award for Grant
Year 2025 Not to
Exceed:
$100,000
Resolution/Authority: RES2025-433
Payment Terms: See EXHIBIT D
Agreement Term: Start Date: 1/1/2026 End Date: 2/28/2027 PARTIES TO AGREEMENT:

GRANTEE CITY OF SAN JOSE
Name: City of Salinas San José Police Department
Address for Legal
Notice:
200 Lincoln Avenue
Salinas, CA 93901
201 W. Mission Street
San José, CA 95110
Attention: Carlos Acosta Paul Joseph
Email Address: [email protected] [email protected] Telephone No: (831) 758-7286 (408) 277-4212
City of Salinas - Internet Crimes Against Children
2 Taxpayer ID: 94-6000412
DUNS/UEI No.:

Type of Entity: Government
State of Incorporation
or Residency: California
CONTACT INFORMATION:

GRANTEE Contract Manager: Vickie Rahman
Title: Management Analyst
Telephone No: 831-758-7946
Email: [email protected]
CITY Representative: Joanna Zywno
Title: Administrative Officer
Telephone No: 408-537-1625
Email: [email protected]
EXHIBIT LIST:

YES N/A
Exhibit A: Scope of Services
Exhibit B: Monitoring, Evaluation, and Reporting Requirements Exhibit C: Budget Summary
Exhibit D: Payments to Grantee and Reporting Schedule
Exhibit E: General Service Requirements
Exhibit F: Federal Funding Provisions
Exhibit G: Insurance Requirements
Exhibit H: Employee/Volunteer Clearance Verification and Compliance with the Child Abuse and Neglect Reporting Act *
Exhibit I: Retroactive Services
* Applicable if GRANTEE employees or volunteers perform services in a position i) having supervisory or disciplinary authority over minors; or ii) requiring contact with children, or as a food concessionaire or other similar licensed concessionaire.

City of Salinas - Internet Crimes Against Children
3 To the extent applicable, the following grant provisions are required for this AGREEMENT:

REQUIRED LANGUAGE ATTACHMENT:

YES N/A
City of San José Funding
Federal
State
County
Other Public Agency
Private Funding Agency
City of Salinas - Internet Crimes Against Children
4 The Exhibits marked above are attached hereto and incorporated herein. I certify that I have read and hereby consent to all the terms and provisions contained in the attached AGREEMENT, including without limitation, all exhibits. Said AGREEMENT is hereby incorporated.

WITNESS THE EXECUTION HEREOF the day and year first hereinabove written.

CITY OF SALINAS, a municipal corporation of the State of California GRANTEE Signature: Date:

Print Name: Rene Mendez
Title: City Manager
City of Salinas - Internet Crimes Against Children
5 CITY OF SAN JOSE, a California municipal corporation
Emily Lam
Director of Administration,
Policy & Intergovernmental
Relations
Date:

OR:

Form Approved by the Office of the
City Attorney
(Total Grant Award is $100,000 or
less, and standard provisions of the
form are not altered.)
City of Salinas - Internet Crimes Against Children
6 CITY OF SAN JOSE

POLICE DEPARTMENT

GRANT AGREEMENT
Internet Crimes Against Children Grant Program
This GRANT AGREEMENT (“AGREEMENT”) is made and entered into upon execution by CITY, and is by and between the CITY OF SAN JOSE, a California municipal corporation (“CITY”), and CITY OF SALINAS, a municipal corporation of the State of California (“GRANTEE”). CITY and GRANTEE are sometimes collectively referred to as “Parties” and individually as “Party”.

RECITALS
WHEREAS, CITY desires to fund grant services to be provided by GRANTEE; and WHEREAS, GRANTEE has the necessary professional expertise and skill to perform such services; and
WHEREAS, these Recitals are incorporated and made a part of this AGREEMENT; NOW, THEREFORE, the purpose of this AGREEMENT is to retain GRANTEE to perform those services specified in EXHIBIT A of this AGREEMENT as follows:

THE PARTIES HEREBY AGREE AS FOLLOWS:

SECTION 1: PROGRAM COORDINATION
A. CITY: The CITY’S DIRECTOR, or his or her designee, also identified on the Summary Pages, shall be the CITY official responsible for the Program and shall render overall supervision of the progress and performance of this AGREEMENT by CITY. All services agreed to be performed by CITY shall be under the overall direction of the DIRECTOR.

B. GRANTEE: GRANTEE shall identify a single project director who shall have overall responsibility for the progress and execution of this AGREEMENT (“GRANTEE Contract Manager”) as also identified on the Summary Pages.

Additionally, GRANTEE shall immediately notify CITY in writing should circumstances or conditions subsequent to the execution of this AGREEMENT require a substitute GRANTEE Contract Manager. GRANTEE Contract Manager and GRANTEE staff will fully cooperate with the DIRECTOR relating to the work or services provided hereunder.

City of Salinas - Internet Crimes Against Children
7 SECTION 2: TERM OF AGREEMENT
A. The term of this AGREEMENT (“Term”) shall commence on the Start Date and shall expire on the End Date, as set forth in the Summary Pages, unless extended or sooner terminated in accordance with the terms of this AGREEMENT.

Regardless of the date of execution of this AGREEMENT, this AGREEMENT is effective as of the Start Date. GRANTEE shall not receive payment for work performed prior to the Start Date.

B. If this AGREEMENT is extended, a request to extend this AGREEMENT along with a description of the revised Scope of Services (attached hereto as EXHIBIT A) should be submitted by GRANTEE to the CITY no less than forty-five (45) days prior to the End Date. An extension must be set forth in a written amendment to this AGREEMENT, signed by authorized representatives of CITY and GRANTEE.

Nothing herein commits or binds the CITY to extend this AGREEMENT which shall be at the sole discretion of CITY, and if additional funds are required, shall be subject to appropriation of funds by the City Council.

SECTION 3: GRANT SERVICES AND GRANT AWARD
A. GRANTEE shall perform those services as specified in detail on EXHIBIT A, “Scope of Services” (“Grant Services”), which is attached hereto and incorporated herein, and shall comply with the terms and conditions of this AGREEMENT.

B. The maximum amount the CITY will pay the GRANTEE for the Grant Services is set forth on the Summary Pages (“Grant Award”).

SECTION 4: PAYMENTS
A. CITY agrees to pay GRANTEE an amount not to exceed the amount set forth on the Summary Pages (“Grant Award”), for the services described in EXHIBIT A, “Scope of Services,” and which payment is subject to the terms and conditions set forth in EXHIBIT C, “Budget Summary,” and EXHIBIT D, “Payments to GRANTEE and Reporting Schedule.” Any costs incurred by GRANTEE above the Grant Award shall be at GRANTEE’s sole cost and expense.

B. GRANTEE will provide CITY with invoices or financial reports signed by the GRANTEE Contract Manager or other authorized GRANTEE representative with authority to confirm the accuracy of reported expenditures on a form approved by CITY, with applicable invoices and/or financial reports in sufficient detail to determine actual costs incurred, hours, services provided, and any indirect, overhead or administrative costs charged to the CITY.

C. CITY will review invoices or financial reports for adherence to AGREEMENT requirements and services, and authorize and release payment to GRANTEE based upon claims submitted and within thirty (30) calendar days from receipt of City of Salinas - Internet Crimes Against Children
8 invoice or financial reports and complete supporting documentation which includes but is not limited to signed timecards, personnel activity reports, paid invoices, receipts, executed contracts, signed leases, payroll records, or any other documentation to prove the costs claimed for reimbursement, provided that GRANTEE is not in default under any provisions of this AGREEMENT.

D. CITY will not pay for unauthorized services rendered by GRANTEE or for claimed services which GRANTEE has not provided as required by this AGREEMENT.

GRANTEE shall in no event be reimbursed for costs incurred prior to Start Date.

E. City’s Manager or designee may, without prior notice to GRANTEE, at any time in his or her absolute discretion, elect to suspend or terminate payment to GRANTEE, in whole or in part, terminate work or expenditures by GRANTEE under this AGREEMENT, or not to make any particular payment under this AGREEMENT or take any other action available in the event of any of the following occurrences:

1. If GRANTEE (with or without knowledge) shall have made any material misrepresentation of any nature with respect to any information or statements furnished to CITY in connection with this AGREEMENT;

2. If there is pending litigation with respect to the performance by GRANTEE of any of its duties or obligations under this AGREEMENT which may materially jeopardize or adversely affect the undertaking of or the carrying out of the Grant Services;

3. If GRANTEE, without having obtained CITY approval, has taken any action pertaining to the Grant Services which requires CITY approval;

4. If GRANTEE makes improper use of the Grant Award;

5. If GRANTEE fails to comply with any of the terms and conditions of this AGREEMENT including without limitation, GRANTEE’s failure to carry out the Grant Services or other obligations as described in any Exhibit to this AGREEMENT; or

6. If GRANTEE submits to CITY any report which is incorrect or incomplete in any material respect, or is untimely.

SECTION 5: DEFAULT AND TERMINATION OF AGREEMENT
A. Termination for Convenience. CITY may, through its DIRECTOR, terminate this AGREEMENT without cause by giving GRANTEE thirty (30) calendar days’ written notice.

B. Termination for Cause. Each of GRANTEE’s obligations under this AGREEMENT shall be deemed material. If GRANTEE fails to perform any of its obligations under City of Salinas - Internet Crimes Against Children
9 this AGREEMENT, or any other agreement with the CITY, CITY may terminate this AGREEMENT upon ten (10) days advance notice (“Notice Period”) to GRANTEE, specifying GRANTEE’s breach and providing GRANTEE with the opportunity to cure the specified breach within the Notice Period or in those instances where the specified breach cannot reasonably be cured within the Notice Period, the opportunity to commence to cure the specified breach. In the event GRANTEE fails to cure or to commence to cure the specified breach within the Notice Period, this AGREEMENT shall be terminated. Without limiting the generality of the foregoing, the occurrence of any one of the following events shall constitute a default of this AGREEMENT for which CITY may exercise its right of termination:

1. GRANTEE’s breach of any of the representations or warranties contained in this AGREEMENT;

2. The occurrence of any of the events set forth in Section 4 for suspension or termination of CITY’s payment of the Grant Award.

C. Termination for Unavailability of Funds. In the event of reduction, suspension, discontinuance or other unavailability of funds, CITY unilaterally may take appropriate action(s) including, but not limited to, immediately canceling or reducing existing service authorization, stopping or reducing further referrals of individuals, and/or reducing the maximum dollar amount of this AGREEMENT.

CITY shall give GRANTEE no less than sixty (60) business days’ advance written notice of the action(s) CITY intends to take as a result of the unavailability of funds.

CITY shall not be liable for start-up costs, or lost profits in the event of early termination.

D. In the event of termination under this Section 5, GRANTEE shall have the following obligations:

1. No later than thirty (30) days following the date of termination, GRANTEE shall refund to CITY any unused portion of the Grant Award, included interest accrued, except that GRANTEE shall have no obligation to refund to CITY any portion of the Grant Award that was distributed in accordance with the terms of the AGREEMENT. GRANTEE shall also provide CITY with a written report detailing the expenditures, if any, from the Grant Award, including an accounting of its administrative expenses to the date of termination. GRANTEE shall refund to CITY any portion of the Grant Award designated for GRANTEE’s administrative expenses which was not expended as of the date of termination.

Nothing in this AGREEMENT shall be deemed to be a waiver of CITY’s right to recover from GRANTEE any portion of the Grant Award that has not been spent in accordance with this AGREEMENT. Upon receipt, GRANTEE will City of Salinas - Internet Crimes Against Children
10 be paid for services performed and reimbursable expenses incurred in compliance with the terms of this AGREEMENT to date of termination.

2. Upon termination, GRANTEE shall immediately deliver to CITY any and all copies of materials used or developed for this grant including, but not limited to, all data collection forms, reports, studies and other work performed, whether or not completed by GRANTEE or GRANTEE’s subcontractor, if any, under this AGREEMENT.

E. Nothing in this AGREEMENT shall be construed so as to deprive CITY of its rights and remedies at law or in equity against GRANTEE.

F. The DIRECTOR is authorized to terminate this AGREEMENT on CITY’s behalf.

G. If the term of this AGREEMENT is more than three hundred and sixty-five (365) days, the funding in any year after the first year may be contingent upon past and pending performance as well as future appropriation by the City Council, in its sole discretion. If the funding required to pay for Grant Services for the next fiscal year has not been appropriated by June 30 of any year, this AGREEMENT will automatically terminate, effective June 30.

H. CITY may, at its sole option, pursue a course correction process with GRANTEE to address issues with GRANTEE’s performance under this AGREEMENT.

However, CITY is under no obligation to pursue a course correction prior to exercising its rights to suspend payment to GRANTEE or to terminate this AGREEMENT.

SECTION 6: ACCOUNTING AND FINANCIAL RECORDS
GRANTEE shall establish and maintain at all times, on a current basis in connection with the provision of Grant Services, an adequate accounting system in accordance with generally accepted accounting principles and standards and acceptable to the DIRECTOR covering all revenues, costs, and expenditures with respect to GRANTEE’s performance under this AGREEMENT. GRANTEE shall maintain its accounting system and shall provide CITY with reports that separate costs and expenses incurred by GRANTEE with CITY funds as distinguished from costs and expenses paid for from other funding sources.

SECTION 7: REPORTING REQUIREMENTS
GRANTEE shall submit reports related to GRANTEE’s performance under this AGREEMENT prepared in accordance with EXHIBIT B and, to the extent applicable, on the schedule specified in EXHIBIT D. The format of the reports shall be as provided in this AGREEMENT unless otherwise directed by the DIRECTOR. A final report shall be delivered to CITY prior to expiration of this AGREEMENT, as may be further described in EXHIBIT B.

City of Salinas - Internet Crimes Against Children
11 SECTION 8: RIGHT OF EXAMINATION AND AUDIT AND PRESERVATION OF

RECORDS
A. GRANTEE agrees that the CITY’s Manager, Auditor, Attorney or the DIRECTOR, or any of their duly authorized representatives, shall have access to and the right to examine all facilities and activities of GRANTEE related to GRANTEE’s performance of this AGREEMENT, including the right to audit, examine and make excerpts or transcripts of all contracts, subcontracts, invoices, payroll records, personnel records, and all other data or financial records relating to matters covered by this AGREEMENT at any time during the term of this AGREEMENT.

GRANTEE shall cooperate with CITY in such audit, examination, further review and shall provide CITY with access to GRANTEE’s staff and to all relevant records, documents, and data, including but not limited to, management letters, board minutes, and payroll.

B. GRANTEE shall comply with any audits by appropriate monitoring agencies at GRANTEE’s sole expense. GRANTEE shall submit an audit report within thirty (30) days in the event the AGREEMENT is terminated, voluntarily or involuntarily, before the end of the term. GRANTEE shall pay to CITY, from neither CITY nor federal funds, the full amount of liability resulting from disallowances or other audit or monitoring exceptions which are attributed to GRANTEE’s error, omission, or violation of any provision of this AGREEMENT.

C. EXHIBIT B, “Monitoring, Evaluation, and Reporting Requirements,” may set forth additional standards regarding the CITY’s right to audit, and GRANTEE’s obligation to deliver to the CITY reports which may include audited financial reports. GRANTEE further agrees that GRANTEE shall preserve all records related to the performance of this AGREEMENT and that CITY’s right to examine or audit the GRANTEE’s records, facilities or activities shall continue as specified in EXHIBIT B.

SECTION 9: CITY ACKNOWLEDGMENT
GRANTEE shall acknowledge the support of CITY, where appropriate, in written documents and informational materials regarding Grant Services, the Grant Award or this AGREEMENT.

SECTION 10: INSURANCE
GRANTEE agrees to have the policies set forth in the attached EXHIBIT G, “Insurance Requirements,” which is attached and incorporated herein, not later than the date of execution of this AGREEMENT and to maintain such policies throughout the term of this AGREEMENT. All policies, endorsements, certificates and/or binders shall be subject to approval by the Risk Manager of the CITY as to form and content. These requirements may not be amended or waived unless approved in writing by the CITY’s Risk Manager.

City of Salinas - Internet Crimes Against Children
12 GRANTEE agrees to provide CITY with a copy of said policies, certificates and/or endorsements upon execution of this AGREEMENT.

SECTION 11: INDEMNIFICATION AND HOLD HARMLESS
A. GRANTEE shall defend, indemnify and hold harmless the CITY, its officers, employees and agents from and against any and all claims, loss, demands, causes of action, or liabilities arising from, in whole or in part, directly or indirectly, GRANTEE’s acts or omissions under this AGREEMENT. In any action or claim against CITY in which GRANTEE is defending CITY, CITY shall have the right to approve legal counsel providing CITY’s defense and such approval shall not be unreasonably withheld. GRANTEE further agrees to release CITY from any and all claims for any damages, including property damage, injury or death occurring or arising out of use of CITY’s property, except as may be caused by the CITY’s sole, active negligence or willful misconduct.

B. The GRANTEE’s obligations under this indemnification provision shall survive the expiration or termination of this AGREEMENT.

SECTION 12: NOTICES
A. Any communication or notice to either Party shall be in writing and shall be either personally delivered or mailed in the United States mail, postage prepaid, or by facsimile, or electronic mail, to the respective Parties addressed as referenced on the Summary Pages of this AGREEMENT. Notice shall be deemed effective on the date personally delivered or, if mailed, three (3) days after deposit in the mail.

B. Either Party may change its address by sending written notice of the new address to the other Party pursuant to this Section 12.

SECTION 13: AMENDMENTS
Unless otherwise authorized by this AGREEMENT, amendments to the terms and conditions of this AGREEMENT and any such adjustment to this AGREEMENT shall be effective only upon the mutual AGREEMENT in writing of the authorized representatives of the Parties.

SECTION 14: COMPLIANCE WITH LAWS/NONDISCRIMINATION
A. GRANTEE shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local governments and with applicable CITY policies.

B. GRANTEE shall not discriminate, in any way, against any person on the basis of race, sex, color, age, religion, actual or perceived gender identity, sexual City of Salinas - Internet Crimes Against Children
13 orientation, disability, ethnicity or national origin in connection with or related to the performance of this AGREEMENT.

C. GRANTEE shall fully implement and comply with its CITY-approved Language Access Plan to ensure that Limited English Proficient clients have equal access to community programs and services.

D. GRANTEE will also obtain and maintain all licenses and permits appropriate to its proper and effective performance of this AGREEMENT prior to the date of commencement, including, but not limited to a City of San José business tax certificate or exemption, if applicable, with the CITY's Finance Department to operate in the CITY. GRANTEE is responsible for contacting the appropriate offices and filing the necessary documents to comply with these requirements.

E. GRANTEE shall comply with the provisions of CITY’s Business Tax Ordinance in Chapter 4.76 of the San José Municipal Code. Moreover, nether CITY nor GRANTEE shall make any payments that would be in violation of any law existing during the term of this AGREEMENT, including but not limited to any maximum amount of administrative fee(s).

F. In the event there are conflicting terms in this AGREEMENT or if the terms of this AGREEMENT conflict with laws existing during the term of this AGREEMENT the stricter terms shall take precedent over the more lenient, unless otherwise stated.

The following examples are intended to provide clarity on this point: (i) if the maximum administrative fee allowed under the agreement is ten (10%), but federal law allows for only seven (7%), then the stricter seven (7%) maximum under federal law would govern; or, (ii) if the agreement provides GRANTEE retain records for five (5) years, but the federal regulations are amended during the term to be seven (7) years, then the stricter seven (7) year retention requirement governs.

SECTION 15: RELATIONSHIP OF PARTIES/INDEPENDENT CONTRACTOR A. It is understood and agreed that GRANTEE in the performance of this AGREEMENT, shall not act nor is it at any time authorized to act, as the agent or representative of CITY in any matter. GRANTEE further agrees that it will not in any manner hold itself out as the agent or representative of CITY or act in such a fashion as would give the impression to a reasonable person that GRANTEE is acting in such a capacity.

B. The Parties agree that GRANTEE and GRANTEE’s employees, in the performance of this AGREEMENT, shall be at all times independent contractors and not agents or employees of the CITY, and that GRANTEE and GRANTEE’s employees shall not be entitled to any salary, fringe benefits, pension, Workers’ Compensation, sick leave, insurance or any other benefit or right connected with employment by the CITY, or any compensation other than as prescribed herein, City of Salinas - Internet Crimes Against Children
14 and GRANTEE and GRANTEE’s employees expressly waive any claim it/they may have to any such rights.

C. Under no circumstances shall this AGREEMENT be construed as one of partnership, joint venture, or employment between GRANTEE and CITY. Each Party acknowledges and agrees that it neither has, nor will give the appearance or impression of having, any legal authority to bind or commit the other Party in any way.

SECTION 16: WAIVER
A. In no event shall any payment by CITY or any acceptance of payment by GRANTEE hereunder constitute or be construed to be a waiver by CITY of any breach of covenants or conditions of this AGREEMENT or any default which may then exist on the part of GRANTEE, and the making of any such payment or the acceptance of any such payment while any such breach or default exists, shall in no way impair or prejudice any right or remedy available to CITY with respect to such breach or default.

B. The waiver by any Party of a breach of any provision of this AGREEMENT shall not be deemed a continuing waiver or a waiver of any subsequent breach of that or any other provision of this AGREEMENT.

SECTION 17: CORPORATE AUTHORITY/AUTHORIZED REPRESENTATIVES GRANTEE represents and warrants that it has the authority to enter into this AGREEMENT. GRANTEE further represents and warrants that its signatory to this AGREEMENT is authorized to execute this AGREEMENT on GRANTEE’s behalf.

SECTION 18: INTEGRATED DOCUMENT
This AGREEMENT, including the Summary Pages and any exhibits, are incorporated herein and embody the entire AGREEMENT between CITY and GRANTEE. No oral agreements or conversations with any officer, agent or employee of CITY shall affect or modify any of the terms or obligations contained in any documents comprising this AGREEMENT. Any such oral agreement shall be considered as unofficial information and in no way binding upon CITY. In the event that the terms specified in the Summary Pages or any of the Exhibits and Certifications attached hereto conflict with any of the terms specified in the body of this AGREEMENT, the terms specified in the body of this AGREEMENT shall control.

SECTION 19: SEVERABILITY OF PROVISIONS
If any part of this AGREEMENT is for any reason found to be unenforceable by a court of competent jurisdiction, all other parts nevertheless remain enforceable. CITY and GRANTEE agree that to the extent that the exclusion of any unenforceable provisions City of Salinas - Internet Crimes Against Children
15 from this AGREEMENT affects the purpose of this AGREEMENT, then the Parties shall negotiate an adjustment to this AGREEMENT in order to give full effect to the purpose of this AGREEMENT or either Party may terminate this AGREEMENT. In the event of termination, the provisions of Section 5 as related to repayment of the Grant Award shall apply.

SECTION 20: VENUE
The Parties agree that this AGREEMENT shall be governed and construed in accordance with the laws of the State of California. In the event that suit shall be brought by either Party to this AGREEMENT, the Parties agree that venue shall be exclusively vested in the state courts of the County of Santa Clara, or if federal jurisdiction is appropriate, exclusively in the United States District Court, Northern District of California, San José, California.

SECTION 21: CONFLICT OF INTEREST
GRANTEE shall avoid all conflict of interest or appearance of conflict of interest in performance of this AGREEMENT. GRANTEE shall comply with the applicable provisions of the Political Reform Act of 1974, as amended, relating to conflicts of interest (codified in California Government Code Section 87000, et seq.), with the conflict of interest provisions of Government Code Section 1090 et seq. and with the CITY’s Code of Ethics, set forth in City Council policy 0-15. GRANTEE shall promptly advise CITY of the facts and circumstances concerning any disclosure made to it or any information obtained by it relating to conflicts of interest.

SECTION 22: RELIGIOUS/POLITICAL ACTIVITIES
A. GRANTEE shall not expend any portion of the Grant Award to inhibit or promote religion and the Grant Services funded by the Grant Award must not be used to convey a religious message. Any portion of the Grant Award used in contradiction to the provisions of this Section 22, shall be deemed a disallowed cost.

B. GRANTEE shall not expend any portion of the Grant Award for political advocacy efforts, whether for or against a political candidate, ballot measure or bill.

SECTION 23: ASSIGNABILITY
The Parties agree that the expertise and experience of GRANTEE are material considerations for this AGREEMENT. Unless specifically authorized by this AGREEMENT, GRANTEE may not assign the performance of any obligation or interest under this AGREEMENT, including subcontracting, without the prior written consent of CITY. Any attempt by GRANTEE to assign this AGREEMENT, in violation of this Section 23, will be voidable at CITY's sole option. In the event CITY determines that any of the rights, duties or obligations under this AGREEMENT have been subcontracted or assigned to another vendor or grantee by GRANTEE, without the written consent of CITY, City of Salinas - Internet Crimes Against Children
16 then CITY may exercise its right to take any appropriate remedy identified in Section 5, “Default and Termination of Agreement,” including without limitation, termination of the entire AGREEMENT.

SECTION 24: SUBCONTRACTS
A. No subcontract will alter in any way any legal responsibility of GRANTEE to provide services under this AGREEMENT.

B. GRANTEE will monitor the subcontractor(s) to ensure compliance with the terms and conditions of this AGREEMENT and provide records of their compliance as requested.

C. GRANTEE will assure that the subcontractor(s) maintain(s) current licensure and indemnity insurance appropriate for obligations undertaken by subcontractor(s) and will provide copies of such to CITY.

D. GRANTEE will provide CITY with records of reimbursement to subcontractor(s) for obligations incurred under subcontract.

E. CITY has the right to refuse reimbursement for obligations incurred under any subcontract that does not comply with the terms of this AGREEMENT.

SECTION 25: EMPLOYEES/VOLUNTEERS
A. Any and all personnel employed or volunteers retained by GRANTEE in conducting the operations of GRANTEE’s Program shall be qualified to perform the duties assigned to them by GRANTEE.

B. GRANTEE shall not hire employees or volunteers who will have supervisory or disciplinary authority over minors who have been convicted of any offense identified in California Public Resources Code Sections 5164. GRANTEE shall fully indemnify, defend, and hold harmless CITY for any such hiring. GRANTEE shall notify CITY in writing of any violation of this provision as soon as is reasonably practicable.

C. GRANTEE shall also not employ any person who is permitted to provide services requiring contact with children or providing food concessionaire services or other licensed concessionaire services in that area, unless GRANTEE has complied with the tuberculosis (TB) testing requirements set forth in Section 5163 of the California Public Resources Code.

D. Regardless of whether services have been provided prior to full execution of this AGREEMENT, GRANTEE certifies to the CITY that all services were provided in full compliance with the terms and provisions of this AGREEMENT.

City of Salinas - Internet Crimes Against Children
17 E. To give effect to California Public Resources Code Sections 5163 and 5164, GRANTEE shall follow the procedures contained in EXHIBIT H attached hereto.

In the event GRANTEE chooses a different national criminal database for complying with the Federal Bureau of Investigation (FBI) requirement for background checks, then such alternative database shall be subject to the CITY’s prior written approval.

SECTION 26: GRANTEE’S FINANCIALS
A. City Council requires that each non-profit organization receiving Three Hundred Fifty Thousand Dollars ($350,000) or more in funds from the CITY (in the aggregate) during any fiscal year which is either (i) grant funding other than construction funding and/or (ii) operating subsidy funding for operation of CITY facilities, must prepare and make available for public view on the internet, annual audited financial statements. The audited financial statements must be made available for view within one hundred fifty (150) days from the end of the nonprofit’s fiscal year (which period may be extended by the CITY’s Manager based upon a showing of hardship or other good cause) and must be submitted to the CITY’s Police Department and posted at the GRANTEE’s website at an easily accessible location. All audits must be performed by a certified public accountant currently licensed to practice in the State of California, must conform to generally accepted auditing standards and otherwise be in a form acceptable to the CITY.

B. Non-profits shall be required to comply with this requirement at the time that the non-profit has entered into one or more grant agreements or subsidy agreements with the CITY, which provide for the payment of an aggregate amount that equals or exceeds Three Hundred Fifty Thousand Dollars ($350,000) in grant and/or subsidy funds in any one fiscal year. Non-profits covered by this requirement must exert due diligence in determining when they have reached the aggregate funding threshold of Three Hundred Fifty Thousand Dollars ($350,000). The provisions of the financial posting requirements shall be interpreted broadly to effectuate the purpose of making available to the public information on recipients of substantial CITY funds. These provisions shall apply not only to grant agreements or operating agreements but shall also apply, without limitation, if any amendments to such agreements brings the total annual funding to equal or exceed Three Hundred Fifty Thousand Dollars ($350,000), and also to any other agreements with the CITY that are equivalent in purpose to a grant agreement or an operating subsidy agreement, regardless of the title of the agreement.

C. This posting requirement shall remain in effect until an entire fiscal year passes in which the non-profit does not have contracts with the CITY which provide for grants and/or subsidies from the CITY in an aggregate amount equaling or exceeding Three Hundred Fifty Thousand Dollars ($350,000). Without limitation of any other remedy, GRANTEE’s failure to comply with this requirement may be taken into consideration when evaluating GRANTEE’s request for future grant funds or subsidies.

City of Salinas - Internet Crimes Against Children
18 D. Organizations receiving an aggregate amount of Twenty-Five Thousand Dollars ($25,000) or more in funds from the CITY during any fiscal year which is either (i) grant funding other than construction funding and/or (ii) operating subsidy funding for operation of CITY facilities, must prepare and submit via the CITY's WebGrants grant management system, ("WebGrants"), a completed Financial Dashboard.

CITY's project director will provide a CITY approved Financial Dashboard template upon request. The Financial Dashboard must be submitted via WebGrants within six (6) months from the end of GRANTEE'S fiscal year. This includes the GRANTEE’s previous fiscal year, if that year ended within six (6) months of the commencement of this AGREEMENT.

SECTION 27: ENVIRONMENTALLY PREFERABLE PROCUREMENT POLICY A. GRANTEE agrees that, in the performance of this AGREEMENT, GRANTEE shall perform its obligations under the AGREEMENT in conformance with City Council Policy 4-6, Environmentally Preferable Procurement Policy. A description for environmentally preferable procurement and the policy can be found on the CITY’s website at the following link:
https://www.sanjoseca.gov/home/showdocument?id=12833.

B. Environmental procurement policies and activities related to the completion of work will include wherever practicable, but are not limited to:

1. Use of recycled and/or recyclable products in daily operations (i.e. 30, 50, 100% PCW paper, chlorine process free; triclosan free hand cleaner, etc.).

2. Use of Energy Star Compliant equipment.

3. Vehicles and vehicle operations (i.e. Alternative Fuel, Hybrid, etc.).

4. Internal waste reduction and reuse protocol(s).

5. Water and resource conservation activities within facilities, including bans on individual serving bottled water and the use of compostable food service products, etc.

SECTION 28: GIFTS
A. GRANTEE is familiar with CITY’s prohibition against the acceptance of any gift by a CITY officer or designated employee, which prohibition is found in Chapter 12.08 of the CITY Municipal Code.

B. GRANTEE agrees not to offer any CITY officer or designated employee any gift prohibited by said Chapter.

C. The offer or giving of any gift prohibited by Chapter 12.08 shall constitute a material breach of this AGREEMENT by GRANTEE. In addition to any other remedies CITY may have in law or equity, CITY may terminate this AGREEMENT for such breach as provided in Section 5 of this AGREEMENT.

City of Salinas - Internet Crimes Against Children
19 SECTION 29: DISQUALIFICATION OF FORMER EMPLOYEES
GRANTEE is familiar with the provisions relating to the disqualification of former officers and employees of CITY in matters which are connected with former duties or official responsibilities as set forth in Chapter 12.10 of the CITY Municipal Code (“Revolving Door Ordinance”). GRANTEE shall not utilize either directly or indirectly any officer, employee or agent of GRANTEE to perform services under this AGREEMENT, if in the performance of such services, the officer, employee, or agent would be in violation of the Revolving Door Ordinance.

SECTION 30: NO THIRD PARTY RIGHTS
This AGREEMENT does not constitute a binding commitment to any client or agency except CITY and GRANTEE. No third party rights are created for clients or other individuals.

SECTION 31: OWNERSHIP OF MATERIALS; APPLICANT/CLIENT REPORTS GRANTEE agrees that it shall provide to CITY information regarding applicants or clients who applied for or received services under this AGREEMENT as needed for reporting and tracking required by applicable federal and state laws. Such information shall be reported in a format that does not identify the individual applicant or client. Training information or reports assembled by CITY from information provided by GRANTEE including, but not limited to, the number of clients enrolled; the number of clients that have completed training; and the number of clients who have entered employment in the area in which they have been trained is the property of CITY without restriction or limitation upon their use including the publication of such information.

SECTION 32: RECORDS
GRANTEE shall be solely responsible to implement internal controls and record keeping procedures that comply with this AGREEMENT and all applicable laws. GRANTEE’s administrative, programmatic and financial records pertaining to the Program, or the AGREEMENT collectively, must sufficiently support the determination that expenditures are allowable. GRANTEE shall retain all records pertinent to this AGREEMENT for a period of five (5) years from the date of final payment for each fiscal year. GRANTEE shall retain such records beyond five (5) years so long as any litigation, audit, dispute or claim is pending.

SECTION 33: MISCELLANEOUS
A. The headings of the sections and subsections of this AGREEMENT are inserted for convenience only.

City of Salinas - Internet Crimes Against Children
20 B. Where this AGREEMENT refers to CITY and no officer of the CITY is named, CITY’s Manager shall have the authority to act on CITY’s behalf.

C. This AGREEMENT may be executed in any number of counterparts and by each Party in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which together shall constitute one and the same instrument.

D. Unless otherwise prohibited by law or CITY policy, the Parties agree that an electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature.

The term “electronic copy of a signed contract” refers to a writing as set forth in Evidence Code Section 1550. The term “electronically signed contract” means a contract that is executed by applying an electronic signature using technology approved by the CITY.

Form approved by CAO: 12/05/2023
T-32629 / 2032958_4 A-1

EXHIBIT A

SCOPE OF SERVICES
GRANTEE will provide the services as described in this EXHIBIT.

In the event GRANTEE desires to modify the Scope of Services, GRANTEE shall apply to CITY in writing setting forth the requested modifications. CITY shall have the authority to approve the following categories of modifications, by letter signed by the CITY, without the necessity of a formal written amendment to this AGREEMENT:

1. Modifications to the times and dates of Scope of Services which do not affect the total units of services (“UOS”) to be provided; or

2. Modifications to the location of the services provided so long as the proposed location will serve the same target population and is consistent with the Grant Allocation Plan, if applicable; or

3. The total number of UOS is reduced by an amount not to exceed ten percent (10%) of the UOS specified in the UOS Workbook.

A. Period of Service.

The Grant Services will commence on January 1, 2026, and continue through December 31, 2026.

B. Description of Services
In accordance with the provisions of the AGREEMENT and all rules and regulations pertaining thereto, GRANTEE shall use the Grant Program funds to procure training, supplies and equipment for the Silicon Valley Internet Crimes Against Children Task Force (SVICAC). The purpose of the SVICAC Task Force is to identify, apprehend, and prosecute Internet sexual predators who exploit children using computers, and to sponsor community education efforts regarding the prevention of internet crimes against children. The SVICAC Task Force expands across 11 different counties within the peninsula. All participating agencies acknowledge that the SVICAC Task Force is a joint operation in which all agencies act as partners in a joint effort to address internet crimes against children. The purchases under this agreement will consist of, but not limited to, training, evidence processing equipment, and operational equipment that will support in assisting jurisdictions in the southern part of the task force region with investigations.

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EXHIBIT B

PROCUREMENT, MONITORING, AND REPORTING REQUIREMENTS
A. Fiscal Responsibilities of GRANTEE:

GRANTEE shall:

1. Appoint and submit to CITY the name of a fiscal contact who shall be responsible for the financial and accounting activities of the GRANTEE, including the receipt and disbursement of GRANTEE funds.

2. Establish and maintain a system of accounts that shall conform to generally accepted principles of accounting for budgeted funds. Such system of accounts shall be subject to review and approval of CITY.

3. Document all costs by maintaining complete and accurate records of all financial transactions, including but not limited to, contracts, invoices, timecards, cash receipts, vouchers, canceled checks, bank statements and/or other official documentation, evidencing in proper detail the nature and propriety of all charges.

4. Submit quarterly financial reports at the end of each quarter as outlined in EXHIBIT D in such form as CITY shall require.

5. Complete all purchases no later than December 31, 2026 and submit final financial reports to CITY no later than January 31, 2027.

6. Certify insurability subject to CITY approval as outlined in EXHIBIT G.

7. Submit to CITY at such times and in such forms as CITY may require, such statements, records, reports, data, and information pertaining to matters covered by this AGREEMENT.

B. Records, Reports and Audits of GRANTEE:

1. Establishment and Maintenance of Records. GRANTEE shall maintain records, including but not limited to, books, financial records, supporting documents, statistical records, personnel, property, and all other pertinent records sufficient to reflect properly:
a. All direct and indirect costs of whatever nature claimed to have been incurred and anticipated to be incurred in the performance of this AGREEMENT; and
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b. All other matters covered by this AGREEMENT. Such records shall be maintained in accordance with requirements now or hereafter prescribed by the CITY.

2. Preservation of Records. GRANTEE shall preserve and make available its records:
a. for the period of five (5) years from the date of final payment to GRANTEE under this AGREEMENT; or
b. for such longer period, if any, as may be required by applicable law; or
c. if this AGREEMENT is completely or partially terminated, for a period of five (5) years from the date of any resulting final settlement.

3. Examination of Records and Facilities. At any time during normal business hours, upon advance written notice and as often as may be deemed necessary, GRANTEE agrees that CITY, and/or any of its respective authorized representatives shall have access to and the right to examine any of its plants, offices and/or facilities engaged in performance of this AGREEMENT and all its records with respect to all matters covered by this AGREEMENT. GRANTEE also agrees that the CITY, or any of its authorized representatives shall have the right to audit, examine, and make excerpts or transcripts of and from such records, and to make audits of all contracts and subcontracts, invoices, payrolls, records of personnel, conditions of employment, materials, and all other data relating to matters covered by this AGREEMENT. CITY may examine records or facilities pursuant to this Section throughout the term of this AGREEMENT and a. for a period of five (5) years after final payment under this AGREEMENT; or,
b. for such longer period as may be required by applicable law; or c. if this AGREEMENT is completely or partially terminated, for a period of five (5) years from the date of any resulting settlement.

4. Audits.
a. Independent Audits.
(1) If required by CITY’s Grant Manager, GRANTEE shall submit an agency audit that conforms to generally accepted auditing standards and that includes the following components:

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A. Balance Sheet or Statement of Financial Position;
B. Statement of Support, Revenue and Expenses and
Changes in Fund Balances or Statement of Activities;
C. Statement of Functional Expenses;
D. Independent Auditor’s Report. If the audit includes a Management Letter, this must also be submitted to the
CITY.

E. Schedule of Government Financial Assistance which
identifies the gross amounts of grants obtained from
the CITY and other governmental sources and shows
the amount received and disbursed under each grant
during the audited fiscal year; and
F. Report on Compliance and on Internal Control over
Financial Reporting based on an Audit of Financial
Statements performed in Accordance with Government
Auditing Standards indicating that a review of internal controls was performed and identifying material
weaknesses and/or reportable conditions, if any.

Funds may be set aside in GRANTEE's budget in an amount equal to CITY's fair share of the GRANTEE's cost of the audit, if required.

(2) If GRANTEE expends $750,000 or more in a year in Federal awards, GRANTEE shall submit an audit report that conforms to the requirements of 2 C.F.R. Part 200, Subpart F, “Audit Requirements”. Funds may be set aside in GRANTEE's
budget in an amount equal to CITY's fair share of the
GRANTEE's cost of a 2 C.F.R. Part 200, Subpart F
independent audit, if required.
(3) The GRANTEE’s contract with its independent auditor shall require that the audit ascertains and determines that no services provided by the GRANTEE under this AGREEMENT
are duplicative of services provided to another agency from which GRANTEE receives funding and are not being
reimbursed from funding received from another agency.
(4) GRANTEE shall also submit a written agency management response to the findings of the Internal Control Report, if required.

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(5) GRANTEE shall obtain three (3) bids for an outside auditor to conduct the agency audit. The AGREEMENT with an outside auditor can span a term of multiple years but it is highly recommended that the GRANTEE rotate independent
auditors every three years.
(6) GRANTEE shall enter into an AGREEMENT with an outside auditor no later than sixty (60) days before the end of each Fiscal Year calling for a financial and compliance audit of GRANTEE's Fiscal Years that are covered by this
AGREEMENT. The written AGREEMENT may be in the form
of an engagement letter prepared by the auditor and approved by GRANTEE.
(7) An audit report must be completed and posted in PDF format on WebGrants within six months of the end of each of the GRANTEE's Fiscal Years covered by this AGREEMENT. If
this AGREEMENT expires or is terminated on a date that
occurs after the period covered by the foregoing audit, GRANTEE shall deliver an audit report within two hundred and fifty (250) days after the expiration or termination of this AGREEMENT auditing the period not covered by the prior
audit.
(8) Should GRANTEE not enter into an AGREEMENT with an
outside auditor or should an audit not be done on a timely basis, the CITY, at its discretion, may enter into an
AGREEMENT with an independent auditor to do the audit at GRANTEE’s expense.
(9) The GRANTEE shall submit to the CITY copies of
management letters the auditor prepares for the GRANTEE as part of the audit engagement.
(10) All audits must be performed by Certified Public Accountants currently certified and licensed to practice in the State of California. GRANTEE must have Auditor’s proof of current licensing on file in GRANTEE’s office. GRANTEE must submit to the CITY's Police Department, Administrative Services Division a copy of Auditor’s certification to practice in California with the audit.
b. CITY Audits. The CITY may perform an independent audit. Such audits may cover programmatic as well as fiscal matters. GRANTEE will be afforded an opportunity to respond to any audit findings, and B-5
have the responses included in the final audit report. Costs of such audits will be borne by the CITY.
c. Disallowed Costs. GRANTEE is liable for repayment of disallowed costs as determined by CITY. Disallowed costs may be identified through audits, monitoring or other sources. GRANTEE shall be afforded the opportunity to respond to any adverse findings that may lead to disallowed costs. CITY shall make the final determination of disallowed costs.
d. GRANTEE shall not adjust any line item expenditures in the Budget Summary (EXHIBIT C) by more than ten percent (10%) without the prior approval of the CITY. GRANTEE shall make such requests for the line item adjustments in writing to the CITY. Failure to do so, may at CITY’s option, result in disallowed costs.

C. Monitoring and Evaluation

1. GRANTEE agrees to cooperate with CITY on the implementation, monitoring and evaluation of this Program and to comply with any and all reporting, data collection, and evaluation requirements established by CITY, including but not limited to; submission of reports as outlined in this AGREEMENT.

2. Desk Reviews/ Site Visits: GRANTEE shall cooperate with desk reviews and visits from the CITY for the purpose of verifying the implementation of funded projects, interviewing staff, and/or verifying supporting documentation.

3. Data Collection: GRANTEE agrees to perform ongoing data collection that includes but not limited to, training records, training certificates, equipment invoices, supplies, and sharing in accordance with CITY process to ensure effective service delivery in compliance with this AGREEMENT.

4. Equipment Identification and Records: GRANTEE shall maintain a readily identifiable inventory of the procured equipment and supplies.

Supplies and equipment must be noted in a log containing the following information for as long as they are owned by the Subrecipient. Equipment records must contain the following information:
 A description of the property.
 Serial number, or other identification number.
 Source of the property.
 Identification of the title holder.

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D. Reporting

1. Quarterly Performance and Fiscal Reports: GRANTEE shall submit quarterly reports or other specific fiscal or reporting requirements regarding GRANTEE’s performance of the Grant Services in accordance with the schedule set forth in EXHIBIT D. The quarterly reports must be on a form approved by CITY.

Form approved by CAO: 12/05/2023
T-32629 / 2032958_4 C-1

EXHIBIT C

BUDGET SUMMARY
A. Personnel Costs
Description CITY
Funding
Other
Funding for
Program
Budget Narrative
Explanation (Include a brief
description of the position)
Total Salaries $-
Fringe Benefits $-

TOTAL PERSONNEL
COSTS
$ -
B. Operating Costs
Description CITY
Funding
Other
Funding for
Program
Budget Narrative
Explanation (Include a brief
description of the expense)
Equipment/Supplies
and Training
$100,000 Funds will be used to procure
equipment/supplies for evidence
processing and operations, and
ICAC related training to support
the program.

Total Operating
Costs
$100,000

TOTAL PROGRAM
COSTS
$100,000
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EXHIBIT D

PAYMENTS TO GRANTEE AND REPORTING SCHEDULE
Payment shall be made as stated in the following schedule, subject to GRANTEE's satisfactory performance of this AGREEMENT.

A. GRANTEE shall submit invoices to the CITY no later than thirty days (30) days following the end of each month. GRANTEE shall provide quarterly activity reports and other suitable documentation acceptable by the CITY that may include, but not limited to, invoices, packing slips, copy of purchase orders, equipment asset list, travel request form, transaction general ledger, and proof of payment. Failure to submit the quarterly invoice by the due date could result in declining the reimbursement request for payment.

Quarterly Reporting Invoice due date
April-Jun 2026 July 30, 2026
July-September 2026 October, 2026
October-December 2026 January 30, 2027
B. Payment of the Grant Award shall be made quarterly, subject to GRANTEE's satisfactory performance of this AGREEMENT.

C. Upon receipt of a quarterly invoice and supporting documentation acceptable to CITY, payments shall be made in accordance with the approved project budget.

City of Salinas - Internet Crimes Against Children
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EXHIBIT E
GENERAL SERVICE REQUIREMENTS (Special Grant Requirements) This Grant Award is subject to the Cal OES Subrecipient Handbook, which can be found at
https://www.caloes.ca.gov/ and is incorporated by reference herein.

I. Federal Grant Funds
Subrecipients expending $1,000,000 or more in federal grant funds annually are required to
secure an audit pursuant to OMB Uniform Guidance 2 CFR Part 200, Subpart F and are allowed to utilize federal grant funds to budget for the audit costs. See Section 8000 of the Subrecipient Handbook for more detail.

II. Equal Employment Opportunity – (Subrecipient Handbook Section 2151) III. Drug-Free Workplace Act of 1990 – (Subrecipient Handbook, Section 2152) IV. California Environmental Quality Act (CEQA) – (Subrecipient Handbook, Section 2153)
V. Lobbying – (Subrecipient Handbook Section 2154)
VI. Debarment and Suspension – (Subrecipient Handbook Section 2155) It is the policy of the Federal Government to conduct business only with responsible persons, and a system for debarment and suspension from programs and activities involving federal financial and non-financial assistance and benefits assist agencies in carrying out this policy. Debarment or suspension of a participant by one agency has government-wide effect. Applicants receiving federal funds must certify that they will adhere to Federal Executive Order 12549, Debarment and Suspension. By signing the Certification of Assurance of Compliance forms (Cal OES Form 2-104), the applicant certifies that neither the applicant nor its principals have been suspended or debarred from participation in federal grants. The applicant also agrees that it will not make any award, subaward, or enter into any contract greater than $35,000 with parties that are debarred, suspended, or otherwise excluded or ineligible for participation in Federal programs or activities. The Cal OES Form 2-104 outlines the grounds for debarment and suspension.

VII. Proof of Authority from City Council/Governing Board VIII. Civil Rights Compliance – (Subrecipient Handbook Section 2151.1) VIIII. Procurement: GRANTEE shall be subject to the following procurement requirements:

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1. Procurement: The GRANTEE will submit purchase requisition requests with cost estimates to the CITY prior to any procurement process in order to confirm the cost is allowable and within budget.

2. Contracts and Procurements: The GRANTEE is the responsible entity, without recourse to the CITY or Cal OES, regarding the settlement and satisfaction of all contractual and administrative issues arising from contracts of the Subrecipient and Grant
Subaward procurements. This responsibility includes, but is not limited to, disputes, claims, and protests of awards. Governmental entities must comply with applicable procurement laws and policies for their jurisdiction when contracting for goods or procuring services. Matters concerning violation of laws must be referred to the local, state, or federal authority having jurisdiction.

3. Contracts and Procurements Over $50,000: GRANTEE must use the formal method of contracting in which a bidder is selected based on material submitted in response to an
Invitation for Bid (“IFB”) or a Request for Proposal (“RFP”). IFBs/RFPs must clearly define all requirements the bidder must fulfill for the bid or offer to be evaluated by the project. The bid or proposal must include a clear and accurate description of the technical
requirements for the services or materials/goods to be produced and must not contain any
features that unduly restrict competition. Bidders are not allowed to discuss or clarify any
points after their bids have been submitted, and face-to-face negotiations are not allowed.
o Invitation for Bid (IFB) is used to solicit prices for services or goods based on definitive specifications. It must include a clear and accurate description of the technical requirements for the services (Contracts) to be produced, or the material or product (Goods) to be procured. The description must not contain features that unduly restrict competition. The basic reason for establishing specifications for technical details for use in formal advertising is to convey to all bidders a complete, unvarying understanding of what is required. This calls for a clear and precise description not subject to varying interpretations. Ensure that all costs are accounted for including any timelines, and all programmatic requirements. a) Cost or Price Analysis: All procurements and/or contracts funded by federal Grant Subawards must have a cost or price analysis performed and submitted to the CITY for the file. The cost or price analysis is written documentation demonstrating the reasonableness of the proposed price of the contract or procured item. Specifically: Price Analysis is the process of examining and evaluating a proposed price without evaluating its separate elements of cost to determine the price is reasonable. It is generally used for simple procurements for which there is adequate catalog pricing and market competition.

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b) Cost Analysis is the review and evaluation of separate elements of cost and profit or fee in an offerors or contractor’s proposal. A cost analysis is required when a bidder is required to submit the elements of his estimated cost, e.g., on consulting contracts for professional services.
o A cost analysis is necessary whenever competition is lacking, and for non-bid procurements, contract modifications and change orders. The method and degree of cost/price analysis is dependent on the facts surrounding the procurement situation.

In addition to price, examples of factors that can be taken into consideration include items such as:
a) The ability, capacity and skill of the bidder to perform the contract or provide the service required.
b) Whether the bidder can perform the contract or provide the service promptly or within the time specified.
c) The warranty, product life expectancy and/or the ability of the bidder to provide future maintenance and service of the item being procured.

City of Salinas - Internet Crimes Against Children
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Attachment 1
Certification Regarding Lobbying

CERTIFICATION FOR CONTRACTS, GRANTS, LOANS, AND COOPERATIVE

AGREEMENTS
The undersigned certifies, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code.

Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

The undersigned states, to the best of his or her knowledge and belief, that:

If any funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this commitment providing for the United States to insure or guarantee a loan, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.

Submission of this statement is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the City of Salinas - Internet Crimes Against Children
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required statement shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

The Contractor, _____________________, certifies or affirms the truthfulness and accuracy of each statement of its certification and disclosure, if any. In addition, the Contractor understands and agrees that the provisions of 31 U.S.C. Chap. 38, Administrative Remedies for False Claims and Statements, apply to this certification and disclosure, if any.
_____________________________________________
Signature of Contractor’s Authorized Official
_____________________________________________
Name and Title of Contractor’s Authorized Official
_____________________________________________
Date
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EXHIBIT G

INSURANCE REQUIREMENTS
GRANTEE, at GRANTEE's sole cost and expense, shall procure and maintain for the duration of this AGREEMENT insurance against claims for injuries to persons or damages to property which may arise from, or in connection with, the performance of the services hereunder by GRANTEE, its agents, representatives, employees or subcontractors.

A. Minimum Scope of Insurance
Coverage shall be at least as broad as:

1. The coverage provided by Insurance Services Office Commercial General Liability coverage (“occurrence”) Form Number CG 0001; and

2. The coverage provided by Insurance Services Office Form Number CA 0001 covering Automobile Liability. Coverage shall be included for all owned, non-owned and hired automobiles; and

3. Workers' Compensation insurance as required by the California Labor Code and Employers Liability insurance; and

4. Professional Liability Errors & Omissions for all professional services.

There shall be no endorsement reducing the scope of coverage required above unless approved by the CITY’s Risk Manager.

B. Minimum Limits of Insurance
GRANTEE shall maintain limits no less than:

1. Commercial General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit; and

2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage; and

3. Workers' Compensation and Employers Liability: Workers' Compensation limits as required by the applicable statute and Employers Liability limits of $1,000,000 per accident; and
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4. Professional Liability Errors & Omissions $1,000,000 per occurrence/ aggregate limit.

Any limits requirement may be met with any combination of primary and excess coverage so long as the excess coverage is written on a "follow form" or umbrella basis.

C. Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to the CITY's Risk Manager.

D. Other Insurance Provisions
The policies are to contain, or be endorsed to contain, the following provisions:

1. Commercial General Liability and Automobile Liability Coverages a. The City of San José, its officers, employees, agents and contractors are to be covered as additional insureds as respects: Liability arising out of activities performed by or on behalf of, GRANTEE; products and completed operations of GRANTEE; premises owned, leased or used by GRANTEE; and automobiles owned, leased, hired or borrowed by GRANTEE.
b. GRANTEE's insurance coverage shall be primary insurance as respects CITY, its officers, employees, agents and contractors. Any insurance or self-insurance maintained by CITY, its officers, employees, agents or contractors shall be excess of GRANTEE's insurance and shall not contribute with it.
c. Any failure to comply with reporting provisions of the policies by GRANTEE shall not affect coverage provided CITY, its officers, employees, agents, or contractors.
d. Coverage shall state that GRANTEE’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. e. Coverage shall contain a waiver of subrogation in favor of the CITY, its officers, employees, agents and contractors.

2. Workers’ Compensation and Employers’ Liability
Coverage shall contain waiver of subrogation in favor of the City of San José, its officers, employees, agents and contractors.

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3. All Coverages
Each insurance policy required by this AGREEMENT shall be endorsed to state that coverage shall not be suspended, voided, cancelled, or reduced in limits except after thirty (10) days' prior written notice has been given to CITY.

E. Acceptability of Insurers
Insurance is to be placed with insurers acceptable to CITY's Risk Manager.

F. Verification of Coverage
GRANTEE shall furnish CITY with certificates of insurance and copies of endorsements affecting coverage required by this AGREEMENT. The certificates and copies of endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf.

Proof of insurance shall be emailed in pdf format to: [email protected]:

Certificate Holder
City of San José—Finance
Risk Management
200 East Santa Clara Street, 13th Floor Tower
San José, CA 95113-1905
G. Subcontractors
GRANTEE shall include all subcontractors as insureds under its policies or shall obtain separate certificates and endorsements for each subcontractor.

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EXHIBIT H

EMPLOYEE/VOLUNTEER CLEARANCE VERIFICATION AND COMPLIANCE WITH

CHILD ABUSE AND NEGLECT REPORTING ACT
If GRANTEE provides services involving minors, and as a CITY-approved method of complying with the provisions contained in this AGREEMENT, GRANTEE shall conduct a criminal background check through the database of the California Department of Justice and an FBI criminal database or equivalent national database as approved in writing by GRANTEE’s liability insurance provider, on each of its employees and volunteers who have supervisory or disciplinary authority over minors.

GRANTEE shall also comply with the provisions of the Child Abuse and Neglect Reporting Act, California Penal Code Section 11164 et. seq. Additionally, GRANTEE certifies to the following:

1. Any and all personnel employed or retained by GRANTEE in conducting the operations of GRANTEE’s program shall be qualified to perform the duties assigned to them by GRANTEE. GRANTEE agrees that GRANTEE shall not at any time allow its employees or volunteers to be in any position with supervisory or disciplinary authority over minors, if they have been convicted of any offense identified in California Public Resources Code Section 5164 (copy attached).

CITY and GRANTEE understand that results of background checks on minors may be confidential under state law. Therefore, all employees or volunteers must be at least 18 years of age if they are to be in a position having supervisory or disciplinary authority over any minor.

If GRANTEE intends to have employees or volunteers under the age of 18 providing services under this AGREEMENT, GRANTEE shall maintain and make available to CITY, if requested, guidelines, procedures or policies, that safeguard and ensure that no employees or volunteers under the age of 18 will be providing services under this AGREEMENT unsupervised and further GRANTEE shall ensure that none of its employees or volunteers under 18 years of age have any supervisory or disciplinary authority over any minor, as such term is used in California Public Resources Code Section 5164.

2. GRANTEE shall be responsible for ensuring that no person who has supervisory or disciplinary authority over minors, who is paid or unpaid by GRANTEE shall be permitted to provide services unless appropriate background checks, including fingerprints, have been performed prior to the beginning of services under this AGREEMENT, and the person meets the standards set forth above. If requested by CITY, and to the extent allowed by law, GRANTEE shall promptly provide documentation listing each person that has provided or is providing services hereunder involving supervision or disciplinary authority over minors, and certifying that the GRANTEE has conducted the proper background check on such person or persons, and each of the named persons is legally permitted to perform the services described in this AGREEMENT. Regardless of whether such documentation is requested or delivered by GRANTEE, GRANTEE shall be solely responsible for compliance with the provisions of this Section 2.

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3. That no person paid or unpaid by GRANTEE shall be permitted to provide services requiring contact with children or providing food concessionaire services or other licensed concessionaire services in that area, unless GRANTEE has complied with the TB testing requirements set forth in Section 5163 of the California Public Resources Code (copy attached), verifying that the person or persons has provided evidence/verification of a negative TB skin test reading less than two (2) years old (if newly hired) or within four (4) years (if current employee) of the date of execution of this AGREEMENT and every four (4) years thereafter, if the term of this AGREEMENT exceeds four (4) years. For persons with a positive TB skin test reading, a physician’s medical clearance must be obtained prior to services being provided as specified above. GRANTEE shall keep on file each certificate of clearance (“Certificate”) for the persons described above, and shall also make available a copy of each Certificate to CITY, if requested and allowed by law. “Certificate” means a document signed by a licensed examining physician and surgeon or a notice from a public health agency or unit of the tuberculosis association which indicates freedom from active tuberculosis.

4. GRANTEE understands that if services are rendered on a school site, there may be additional requirements that may apply including without limitation, requirements under the California Education Code. GRANTEE acknowledges that it is GRANTEE’s sole responsibility to comply with all applicable laws, regulations and licensing requirements in GRANTEE’s provision of services hereunder.

I, the GRANTEE by signing below verify that I have read and agree to the above:

Signature Date
Please Print or Type Name of Organization
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CALIFORNIA PUBLIC RESOURCES CODE SECTION 5164
5164. (a)(1) A county, city, city and county, or special district shall not hire a person for employment, or hire a volunteer to perform services, at a county, city, city and county, or special district operated park, playground, recreational center, or beach used for recreational purposes, in a position having supervisory or disciplinary authority over a minor, if that person has been convicted of an offense specified in paragraph (2). (2)(A) Violations or attempted violation of Section 220, 261.5, former Section 262, 273a, 273d, or 273.5 of the Penal Code, or a sex offense listed in Section 290 of the Penal Code, except for the offense specified in subdivision (d) of Section 243.4 of the Penal Code.
(B) A felony or misdemeanor conviction specified in subparagraph (C) within 10 years of the date of the employer’s request.
(C) A felony conviction that is over 10 years old, if the subject of the request was incarcerated within 10 years of the employer’s request, for a violation or attempted violation of an offense specified in Chapter 3 (commencing with Section 207) of Title 8 of Part 1 of the Penal Code, Section 211 or 215 of the Penal Code, wherein it is charged and proved that the defendant personally used a deadly or dangerous weapon, as provided in subdivision (b) of Section 12022 of the Penal Code, in the commission of that offense, Section 217.1 of the Penal Code, Section 236 of the Penal Code, an offense specified in Chapter 9 (commencing with Section 240) of Title 8 of Part 1 of the Penal Code, or an offense specified in subdivision (c) of Section 667.5 of the Penal Code, provided that a record of a misdemeanor conviction shall not be transmitted to the requester unless the subject of the request has a total of three (3) or more misdemeanor convictions, or a combined total of three or more misdemeanor and felony convictions, for violations listed in this Section within the 10-year period immediately preceding the employer’s request or has been incarcerated for any of those convictions within the preceding 10 years.
(b)(1) To give effect to this Section, a county, city, city and county, or special district shall require each such prospective employee or volunteer to complete an application that inquires as to whether or not that individual has been convicted of an offense specified in subdivision (a). The county, city, city and county, or special district shall screen, pursuant to Section 11105.3 of the Penal Code, any such prospective employee or volunteer, having supervisory or disciplinary authority over a minor, for that person’s criminal background.
(2) A local agency request for Department of Justice records pursuant to this subdivision shall include the prospective employee’s or volunteer’s fingerprints, which may be taken by the local agency, and any other data specified by the Department of Justice. The request shall be made on a form approved by the Department of Justice. A fee shall not be charged to the local agency for requesting the records of a prospective volunteer pursuant to this subdivision.
(3) A county, city, city and county, or special district may charge a prospective employee or volunteer described in subdivision (a) a fee to cover all of the county, city, city and county, or special district’s costs attributable to the requirements imposed by this section.

H-4
CALIFORNIA PUBLIC RESOURCES CODE SECTION 5163
5163. (a) No person shall initially be employed in connection with a park, playground, recreational center, or beach used for recreational purposes by a city or county in a position requiring contact with children, or as a food concessionaire or other licensed concessionaire in that area, unless the person produces or has on file with the city or county a certificate showing that within the last two (2) years the person has been examined and has been found to be free of communicable tuberculosis. (b) Thereafter, those employees who are skin test negative shall be required to undergo the foregoing examination at least once each four (4) years for so long as the employee remains skin test negative. Once an employee has a documented positive skin test which has been followed by an X-ray, the foregoing examination is no longer required and a referral shall be made within thirty (30) days of the examination to the local health officer to determine the need for follow-up care.
“Certificate” means a document signed by the examining physician and surgeon who is licensed under Chapter 5 (commencing with Section 2000) of Division 2 of the Business and Professions Code, or a notice from a public health agency or unit of the tuberculosis association which indicates freedom from active tuberculosis. 5163.1. The examination shall consist of an approved intradermal tuberculosis test, which, if positive, shall be followed by an X-ray of the lungs.

Nothing in Sections 5163 to 5163.2, inclusive, shall prevent the governing body of any city or county, upon recommendation of the local health officer, from establishing a rule requiring a more extensive or more frequent examination than required by Section 5163 and this Section.
5163.2. The X-ray film may be taken by a competent and qualified X-ray technician if the X-ray file is subsequently interpreted by a licensed physician and surgeon. 5163.3. The city or county shall maintain a file containing an up-to-date certificate for each person covered by Section 5163.
5163.4. Nothing in Section 5163 to 5163.3, inclusive, shall prevent the city or county from requiring more extensive or more frequent examinations.

I-1

EXHIBIT I

RETROACTIVE SERVICES
The term of this AGREEMENT shall be retroactive from January 1, 2026 and shall continue through December 31, 2026. It is understood and agreed that GRANTEE has commenced work and incurred costs prior to execution of this AGREEMENT in anticipation of its execution.

CITY agrees to reimburse GRANTEE for those costs in accordance with the terms of the AGREEMENT. However, in no event shall GRANTEE be reimbursed for costs incurred prior to January 1, 2026.

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#26-222, Version: 1
Setting Public Hearing Date for the Landscape and Maintenance Assessment District’s Annual Levy Approve Resolution(s) initiating the proceedings for the annual levy of assessments, declaring the City’s intention to levy and collect an assessment, setting a public hearing date for June 30, 2026, and preliminary approving the Engineer’s Reports for the Landscape and Maintenance Districts.

City of Salinas Page 1 of 1 Printed on 5/29/2026
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CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: JUNE 2, 2026
DEPARTMENT: PUBLIC WORKS DEPARTMENT
FROM: DAVID JACOBS, PUBLIC WORKS DIRECTOR
BY: CRISTINA GONZALEZ, PUBLIC WORKS ADMINISTRATIVE

SUPERVISOR
TITLE: SETTING PUBLIC HEARING DATES FOR THE LANDSCAPE & MAINTENANCE ASSESSMENT DISTRICT’S ANNUAL LEVY
RECOMMENDED MOTION:

A motion to approve Resolutions initiating the proceedings for the annual levy of assessments, declaring the City’s intention to levy and collect an assessment, setting a public hearing date for June 30, 2026, and preliminary approving the Engineer’s Reports for the Landscape and Maintenance Districts.

EXECUTIVE SUMMARY:

There are six (6) landscape maintenance assessment districts (LMADs) within the City of Salinas created under the Landscaping and Lighting Act of 1972 (the Act) and adopted locally. The Act allows property owners to assess themselves within a specific area, or “district” to generate funds for various improvements within the district. Assessments are renewed annually, but prior to levying, an Engineer’s Report must be ordered, prepared, and presented at a public hearing. Based on the currently established maintenance district formulas, the FY 26-27 rates are expected to be increased only in the North/East Area and Mira Monte Districts BACKGROUND:

The City of Salinas contains six Landscaping and Maintenance Assessment Districts (LMADs), which were established under the Landscaping and Lighting Act of 1972 and locally adopted via Article II, Chapter 21C of the Salinas City Code. These districts allow property owners within defined areas to voluntarily assess themselves, raising funds for public lighting, landscaping, and other improvements in their neighborhoods. Each year, assessments must be reviewed and renewed before submission to the County of Monterey. This process includes commissioning and preparing an Engineer’s Report, which is then presented at a public hearing.

Districts formed before Proposition 218 was enacted in 1996 are "grandfathered" and exempt from its legal requirements, as long as assessment rates remain at or below those set in 1996. Currently, staff do not recommend changes to the assessment levy formulas for any maintenance district, Page | 2
therefore ballot mailings are unnecessary. Although direct notices are not required, public hearing announcements will appear on the City’s website after Council approval of the schedule. To strengthen public outreach, each District’s budget and Engineer’s Report will also be published on the website annually.

Airport Business Center Maintenance District
Upon formation in 1987, the following services were approved to be funded by the Airport Business Center District within its boundaries:

Maintenance, repair, replacement and operations for walkways, crosswalks, masonry walls or fences, parkways, embankments, sprinkler systems, and landscaping that lie within the right of way of Moffett St, La Guardia St and Vandenburg St.

A total of 39 parcels are currently assessed at $217.49 per acre, a rate that was originally set to cover maintenance costs at the time of formation. However, the assessment rate has not been adjusted for inflation, leading to a reduction in service levels as maintenance costs have risen.

Since the Airport Business Center District is “grandfathered”, it is not subject to Proposition 218 requirements as long as the assessments remain at or below the 1996 rates. However, any increase in the assessment rate or changes to the formula, such as including City-owned parcels or altering the acreage-based method would require full compliance with Proposition 218. This has prevented adjustments that would help keep pace with rising expenses, further contributing to service reductions.

In 2019, staff met with property owners to discuss fiscal sustainability. There was support for including City-owned parcels along Moffett Street in the assessment district and revising the current formula, which is based solely on acreage and exempts government-owned parcels. No changes are proposed.

North/East Area District
Upon formation, the following services were approved to be funded by the North/East Area District within its boundaries:

Maintenance, operation of any and all public landscaping and irrigation improvements on landscaped medians islands, including the 30-foot-wide park strips of land between the curb and right-of-way, cul-de-sac median landscaping, jogging paths, planter walls public lighting.

In 1999, the District underwent the Proposition 218 process, and property owners approved an assessment rate change to include an annual inflation factor tied to the average Engineer’s News Record (ENR) cost index increase for the prior year.

From April 2025 to March 2026, the ENR Construction Cost Index increased by 2.61%. Consistent with the approved assessment formula, staff recommends increasing the Fiscal Year 2026-27 maximum assessment rate by 2.61%.

Page | 3
Mira Monte Maintenance District
Upon formation in 2000, the following services were approved to be funded by the Mira Monte Maintenance District within its boundaries:

Maintenance, repair, reconstruction, and operation of the landscaping, irrigation systems, and public improvements within said district. Public improvements include curbs, gutters, asphalt street improvements, sidewalks, masonry walls, concrete-paver driveway clusters, parkway strips adjacent to curbs, landscape easements, tot lots, landscaped open space parcels, appurtenant water mains, irrigation systems, public lighting fixtures on all streets and driveway clusters.

A total of 203 parcels are assessed annually within the District. For Fiscal Year 2026-27, the maximum assessment rate will increase by 0.62%, consistent with the inflationary factor tied to the ENR Construction Cost Index and authorized by the District’s assessment formula. Staff recommends approving the increase for the Mira Monte District to support the cost of ongoing maintenance services.

Harden Ranch Maintenance District
Upon formation in 1991, the following services were approved to be funded by the Harden Ranch Maintenance District within its boundaries:

Maintenance and operation of and the furnishing of services and materials for street lighting facilities, masonry walls, detention basins, open space areas, landscaping, irrigation systems, bike paths, pedestrian pathways, slope maintenance, graffiti abatement, entry monuments, landscaping which includes trees, shrubs, grass, and other ornamental vegetation, and appurtenant facilities, including irrigation systems and drainage devices Annual assessments in the Harden Ranch Maintenance District are as follows:

Single Family Residence Parcels $66.72 per unit
Non-Single-Family Residence $353 per acre
The Harden Ranch Maintenance District's assessment was initially set at a rate based on 1991 prices and did not account for inflation. In 1999, the City conducted a property owner assessment ballot in accordance with Proposition 218 to introduce an annual escalator based on the Consumer Price Index (CPI). However, the proposal was met with a majority protest, and the inflation adjustment was not approved.

As a result, maintenance services have gradually declined, with the District now able to provide only about 13% of the maintenance it could do in 1999. Despite rising costs for labor, materials, and services, the assessment revenue has remained unchanged. To address this, further reductions in services are likely unless a new Proposition 218 ballot measure is approved, allowing for annual rate increases to keep pace with inflation and fully fund maintenance needs. Therefore, no changes will be made to the current amount.

Page | 4
Vista Nueva Maintenance District
Upon formation, the following services were approved to be funded by the Vista Nueva Maintenance District within its boundaries:

Installing and maintaining the telephone/alarm system for the Sanitary Sewer Pump Station; monitoring and maintaining a sanitary sewer pump station twice a week, and a sanitary sewer main four times a year with City forces, or as needed; maintaining street pavement; providing maintenance and power for a new street light system; and maintaining subdivision fence.

When the Vista Nueva District was created, a flat $12 annual increase was built into the assessment formula, with a maximum cap of $600 per year. By 2011, the assessment had reached this cap, rising from $592 to $600. As a result, there will be no further increase in the assessment this year, as the maximum allowable rate has already been met.

Monte Bella Maintenance District
Established in 2004, the Monte Bella Maintenance District funds five types of improvements:

Street landscaping, street lighting, parks, open space, and detention basin landscaping; street maintenance; and public improvements. Each improvement is budgeted and assessed by District benefit zone.

The assessment formula includes an inflationary factor that increases assessments annually by the greater of 3% or the CPI increase (3.8% from April 2025 to April 2026). A decrease (10%) was approved 14 years ago because of the slow build-out. Since then, construction has been completed, and Phase 6 was accepted in 2022, adding new maintenance and operational costs. It is proposed that the assessment rates remain unchanged from last year, as there are sufficient reserves available to cover capital improvements and address ongoing maintenance.

CEQA CONSIDERATION:

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

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No
STRATEGIC PLAN INITIATIVE:

Approving the proposed Resolutions will support the Council’s Strategic Goal of Infrastructure and City Services.

Page | 5
DEPARTMENTAL COORDINATION:

The Public Works Department’s Administration Division and Maintenance Division contribute staff time and resources to the day-to-day maintenance and administration of the Districts. Every year in August, Finance and Public Works Departments work cooperatively to prepare and submit the levy to the County for bi-annual collections.

FISCAL AND SUSTAINABILITY IMPACT:

There is no direct fiscal impact by adopting the proposed resolutions. Staff will continue to seek out cost saving measures in order to sustain low maintenance costs.

ATTACHMENTS:

Resolutions
Preliminary Engineer’s Reports
Page | 1
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL INITIATING PROCEEDINGS FOR ANNUAL

LEVY OF ASSESSMENTS FOR THE AIRPORT BUSINESS CENTER MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council has, by previous Resolutions, formed the Airport Business Center Maintenance District, (hereafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”) that provides for levy and collection of assessments by the County of Monterey for the City of Salinas to pay the maintenance and services of lighting facilities, landscaping, and all appurtenant facilities and operations related thereto; and
WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Articles XIIIC and XIIID; and WHEREAS, the City Council has ordered the City Engineer to prepare and file an Engineer’s Annual Levy Report with the City Clerk in accordance with the Act.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby initiates the proceedings for the annual levy of assessments for the Airport Business Center Maintenance District for fiscal year 2026-2027, and preliminarily approves the Engineer’s Annual Levy Report concerning the levy of assessments for the District, as prepared in accordance with Chapter 3, Section 22622 of the Landscaping and Lighting Act of 1972.

PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk
Page | 2
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL DECLARING ITS INTENTION TO LEVY

ANNUAL ASSESSMENTS FOR THE AIRPORT BUSINESS CENTER MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council has, by previous Resolutions, formed the Airport Business Center Maintenance District, (hereafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”) that provides for levy and collection of assessments by the County of Monterey for the City of Salinas to pay the maintenance and services of lighting facilities, landscaping, and all appurtenant facilities and operations related thereto; and
WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Articles XIIIC and XIIID; and WHEREAS, the City Council has ordered the City Engineer to prepare and file an Engineer’s Annual Levy Report with the City Clerk in accordance with the Act.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council, pursuant to Chapter 3, Section 22624 of the Act, orders as follows:

1. Intention: The City Council hereby declares that its intention to seek the Annual Levy of the District pursuant to the Act, over and including the land within the District boundary, and to levy, increase, and collect assessments pursuant to the method of distributing cost as provided in the Engineer’s Report on all such land to pay the costs of the following: the operation, maintenance, and servicing of lighting, landscaping, and all appurtenant facilities and operations related thereto.

2. Description of Improvements and Any Substantial Changes Proposed: The improvements within the District include the maintenance, repair, and operation of all walkways, crosswalks, masonry walls or fences, parkways, embankments, sprinkler systems, and landscaping that lie within the right of way of Moffett Street, La Guardia Street, and Vandenburg Street. The Engineer's Annual Levy Report on file with the City Engineer describes all new improvements or substantial changes in existing improvements. All interested persons are referred to that report for a detailed description of the improvements, boundaries of the District and the proposed assessments.

3. Boundaries and Designation: The boundaries of the District are described as the boundaries previously defined in the formation documents of the original District.

4. Public Hearing: The City Council hereby declares its intention to conduct a Public Hearing annually concerning the levy of assessments for the District in accordance with Chapter 3, Section 22626 of the Act.

Page | 3

5. Notice: The City Clerk shall give notice of the time and place of the Public Hearing to all property owners within the District by causing a summary of this Resolution to be published once in a newspaper of general circulation within the City of Salinas, twenty (20) days before the date of the public meeting and by posting a copy of this Resolution on the official bulletin board customarily used by the City Council for the posting of notices.

6. Time of Public Hearing: Notice is hereby given that a public hearing will be held by the City Council of the City of Salinas on Tuesday, June 30, 2026, at 4:00 p.m. and/or as soon thereafter as feasible in the Regular Meeting Chambers located within the City Hall Rotunda, at 200 Lincoln Avenue, Salinas.

PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk
Page | 4
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL PRELIMINARILY APPROVING THE ANNUAL ENGINEER’S LEVY REPORT FOR THE AIRPORT BUSINESS CENTER MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council has, by previous Resolutions, ordered the preparation of an Engineer’s Annual Levy Report (hereafter referred to as the “Report”) for the Airport Business Center Maintenance District, (hereafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”); and WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Articles XIIIC and XIIID; and WHEREAS, the City Council has now been presented with the Report as required by Chapter 1, Article 4, Section 22566 of the Act; and
WHEREAS, the City Council has carefully examined and reviewed the Report as presented and is preliminarily satisfied with it and all of the budget items and documents as set forth therein and is satisfied on a preliminary basis that the assessments have been spread in accordance with the benefits received from the improvements, operation, maintenance and services to be performed within each benefit zone as set forth in said Report.

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

1. The above recitals are all true and correct.

2. The presented Report consists of the following elements: a description of the improvements; the annual budget; the method of apportionment that details the method of calculating each parcel’s proportional special benefit and annual assessment; a statement of the method of parcel assessment determination; a list of names and addresses of the owners of real property within the District; a diagram showing all of the parcels of real property within the District.

3. The report is hereby approved on a preliminary basis and ordered to be filed in the Office of the City Engineer as a permanent record and to remain open to public inspection.

4. That the City Clerk shall certify the passage and adoption of this Resolution, and the minutes of the meeting shall so reflect the presentation of the Report.

PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:

AYES:

NOES:

Page | 5
ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk
Page | 6
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL INITIATING PROCEEDINGS FOR ANNUAL

LEVY OF ASSESSMENTS FOR THE MIRA MONTE MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council has, by previous Resolutions, formed the Mira Monte Maintenance District, (hereafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”) that provides for levy and collection of assessments by the County of Monterey for the City of Salinas to pay the maintenance and services of lighting facilities, landscaping, and all appurtenant facilities and operations related thereto; and
WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Articles XIIIC and XIIID; and WHEREAS, the City Council has ordered the City Engineer to prepare and file an Engineer’s Annual Levy Report with the City Clerk in accordance with the Act.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby initiates the proceedings for the annual levy of assessments for the Mira Monte Maintenance District for fiscal year 2026-2027, and preliminarily approves the Engineer’s Annual Levy Report concerning the levy of assessments for the District, as prepared in accordance with Chapter 3, Section 22622 of the Landscaping and Lighting Act of 1972.

PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk
Page | 7
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL DECLARING ITS INTENTION TO LEVY

ANNUAL ASSESSMENTS FOR THE MIRA MONTE MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council has, by previous Resolutions, formed the Mira Monte Maintenance District, (hereafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”) that provides for levy and collection of assessments by the County of Monterey for the City of Salinas to pay the maintenance and services of lighting facilities, landscaping, and all appurtenant facilities and operations related thereto; and
WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Articles XIIIC and XIIID; and WHEREAS, the City Council has ordered the City Engineer to prepare and file an Engineer’s Annual Levy Report with the City Clerk in accordance with the Act.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council, pursuant to Chapter 3, Section 22624 of the Act, orders as follows:

1. Intention: The City Council hereby declares that its intention to seek the Annual Levy of the District pursuant to the Act, over and including the land within the District boundary, and to levy, increase, and collect assessments pursuant to the method of distributing cost as provided in the Engineer’s Report on all such land to pay the costs of the following: the operation, maintenance, and servicing of lighting, landscaping, and all appurtenant facilities and operations related thereto. \

2. Description of Improvements and Any Substantial Changes Proposed: The assessments provide for the maintenance, repair, reconstruction, and operation of and the furnishing of services and materials for the landscaping, irrigation systems, and public improvements. Landscaping includes trees, shrubs, grass, and other ornamental vegetation. Public improvements include curbs, gutters, asphalt street improvements, sidewalks, masonry walls, concrete-paver driveway clusters, parkway strips adjacent to curbs, landscape easements, appurtenant water mains, irrigation systems, public lighting fixtures on all streets and driveway clusters listed below.The Engineer's Annual Levy Report on file with the City Engineer describes all new improvements or substantial changes in existing improvements. All interested persons are referred to that report for a detailed description of the improvements, boundaries of the District and the proposed assessments.

3. Boundaries and Designation: The boundaries of the District are described as the boundaries previously defined in the formation documents of the original District.

4. Public Hearing: The City Council hereby declares its intention to conduct a Public Page | 8
Hearing annually concerning the levy of assessments for the District in accordance with Chapter 3, Section 22626 of the Act.

5. Notice: The City Clerk shall give notice of the time and place of the Public Hearing to all property owners within the District by causing a summary of this Resolution to be published once in a newspaper of general circulation within the City of Salinas, twenty (20) days before the date of the public meeting and by posting a copy of this Resolution on the official bulletin board customarily used by the City Council for the posting of notices.

6. Time of Public Hearing: Notice is hereby given that a public hearing will be held by the City Council of the City of Salinas on Tuesday, June 30, 2026, at 4:00 p.m. and/or as soon thereafter as feasible in the Regular Meeting Chambers located within the City Hall Rotunda, at 200 Lincoln Avenue, Salinas.

PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk
Page | 9
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL PRELIMINARILY APPROVING THE ANNUAL ENGINEER’S LEVY REPORT FOR THE MIRA MONTE MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council has, by previous Resolutions, ordered the preparation of an Engineer’s Annual Levy Report (hereafter referred to as the “Report”) for the Mira Monte Maintenance District, (hereafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”); and WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Articles XIIIC and XIIID; and WHEREAS, the City Council has now been presented with the Report as required by Chapter 1, Article 4, Section 22566 of the Act; and
WHEREAS, the City Council has carefully examined and reviewed the Report as presented and is preliminarily satisfied with it and all of the budget items and documents as set forth therein and is satisfied on a preliminary basis that the assessments have been spread in accordance with the benefits received from the improvements, operation, maintenance and services to be performed within each benefit zone as set forth in said Report.

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

1. The above recitals are all true and correct.

2. The presented Report consists of the following elements: a description of the improvements; the annual budget; the method of apportionment that details the method of calculating each parcel’s proportional special benefit and annual assessment; a statement of the method of parcel assessment determination; a list of names and addresses of the owners of real property within the District; a diagram showing all of the parcels of real property within the District.

3. The report is hereby approved on a preliminary basis and ordered to be filed in the Office of the City Engineer as a permanent record and to remain open to public inspection.

4. That the City Clerk shall certify the passage and adoption of this Resolution, and the minutes of the meeting shall so reflect the presentation of the Report.

PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:

AYES:

NOES:

Page | 10
ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk
Page | 11
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL INITIATING PROCEEDINGS FOR ANNUAL

LEVY OF ASSESSMENTS FOR THE HARDEN RANCH MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council has, by previous Resolutions, formed the Harden Ranch Maintenance District, (hereafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”) that provides for levy and collection of assessments by the County of Monterey for the City of Salinas to pay the maintenance and services of lighting facilities, landscaping, and all appurtenant facilities and operations related thereto; and
WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Articles XIIIC and XIIID; and WHEREAS, the City Council has ordered the City Engineer to prepare and file an Engineer’s Annual Levy Report with the City Clerk in accordance with the Act.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby initiates the proceedings for the annual levy of assessments for the Harden Ranch Maintenance District for fiscal year 2026-2027, and preliminarily approves the Engineer’s Annual Levy Report concerning the levy of assessments for the District, as prepared in accordance with Chapter 3, Section 22622 of the Landscaping and Lighting Act of 1972.

PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk
Page | 12
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL DECLARINGITS INTENTION TO LEVY

ANNUAL ASSESSMENTS FOR THE HARDEN RANCH MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council has, by previous Resolutions, formed the Harden Ranch Maintenance District, (hereafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”) that provides for levy and collection of assessments by the County of Monterey for the City of Salinas to pay the maintenance and services of lighting facilities, landscaping, and all appurtenant facilities and operations related thereto; and
WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Articles XIIIC and XIIID; and WHEREAS, the City Council has ordered the City Engineer to prepare and file an Engineer’s Annual Levy Report with the City Clerk in accordance with the Act.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council, pursuant to Chapter 3, Section 22624 of the Act, orders as follows:

1. Intention: The City Council hereby declares that its intention to seek the Annual Levy of the District pursuant to the Act, over and including the land within the District boundary, and to levy, increase, and collect assessments pursuant to the method of distributing cost as provided in the Engineer’s Report on all such land to pay the costs of the following: the operation, maintenance, and servicing of lighting, landscaping, and all appurtenant facilities and operations related thereto.

2. Description of Improvements and Any Substantial Changes Proposed: The assessments provide for the maintenance and operation of and the furnishing of services and materials for, masonry walls, detention basins, landscaping, irrigation systems, landscaping which includes trees, shrubs, grass, and other ornamental vegetation, and appurtenant facilities, including irrigation systems and drainage devices within the District. The Engineer's Annual Levy Report on file with the City Engineer describes all new improvements or substantial changes in existing improvements. All interested persons are referred to that report for a detailed description of the improvements, boundaries of the District and the proposed assessments.

3. Boundaries and Designation: The boundaries of the District are described as the boundaries previously defined in the formation documents of the original District.

4. Public Hearing: The City Council hereby declares its intention to conduct a Public Hearing annually concerning the levy of assessments for the District in accordance with Chapter 3, Section 22626 of the Act.

Page | 13

5. Notice: The City Clerk shall give notice of the time and place of the Public Hearing to all property owners within the District by causing a summary of this Resolution to be published once in a newspaper of general circulation within the City of Salinas, twenty (20) days before the date of the public meeting and by posting a copy of this Resolution on the official bulletin board customarily used by the City Council for the posting of notices.

6. Time of Public Hearing: Notice is hereby given that a public hearing will be held by the City Council of the City of Salinas on Tuesday, June 30, 2026, at 4:00 p.m. and/or as soon thereafter as feasible in the Regular Meeting Chambers located within the City Hall Rotunda, at 200 Lincoln Avenue, Salinas.

PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk
Page | 14
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL PRELIMINARILY APPROVING THE ANNUAL ENGINEER’S LEVY REPORT FOR THE HARDEN RANCH
MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council has, by previous Resolutions, ordered the preparation of an Engineer’s Annual Levy Report (hereafter referred to as the “Report”) for the Harden Ranch Maintenance District, (hereafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”); and WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Articles XIIIC and XIIID; and WHEREAS, the City Council has now been presented with the Report as required by Chapter 1, Article 4, Section 22566 of the Act; and
WHEREAS, the City Council has carefully examined and reviewed the Report as presented and is preliminarily satisfied with it and all of the budget items and documents as set forth therein and is satisfied on a preliminary basis that the assessments have been spread in accordance with the benefits received from the improvements, operation, maintenance and services to be performed within each benefit zone as set forth in said Report.

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

1. The above recitals are all true and correct.

2. The presented Report consists of the following elements: a description of the improvements; the annual budget; the method of apportionment that details the method of calculating each parcel’s proportional special benefit and annual assessment; a statement of the method of parcel assessment determination; a list of names and addresses of the owners of real property within the District; a diagram showing all of the parcels of real property within the District.

3. The report is hereby approved on a preliminary basis and ordered to be filed in the Office of the City Engineer as a permanent record and to remain open to public inspection.

4. That the City Clerk shall certify the passage and adoption of this Resolution, and the minutes of the meeting shall so reflect the presentation of the Report.

PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:

AYES:

NOES:

Page | 15
ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk
Page | 16
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL INITIATING PROCEEDINGS FOR ANNUAL

LEVY OF ASSESSMENTS FOR THE MONTE BELLA MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council has, by previous Resolutions, formed the Monte Bella Maintenance District, (hereafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”) that provides for levy and collection of assessments by the County of Monterey for the City of Salinas to pay the maintenance and services of lighting facilities, landscaping, and all appurtenant facilities and operations related thereto; and
WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Articles XIIIC and XIIID; and WHEREAS, the City Council has ordered the City Engineer to prepare and file an Engineer’s Annual Levy Report with the City Clerk in accordance with the Act.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby initiates the proceedings for the annual levy of assessments for the Monte Bella Maintenance District for fiscal year 2026-2027, and preliminarily approves the Engineer’s Annual Levy Report concerning the levy of assessments for the District, as prepared in accordance with Chapter 3, Section 22622 of the Landscaping and Lighting Act of 1972.

PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk
Page | 17
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL DECLARING ITS INTENTION TO LEVY

ANNUAL ASSESSMENTS FOR THE MONTE BELLA MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council has, by previous Resolutions, formed the Monte Bella Maintenance District, (hereafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”) that provides for levy and collection of assessments by the County of Monterey for the City of Salinas to pay the maintenance and services of lighting facilities, landscaping, and all appurtenant facilities and operations related thereto; and
WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Articles XIIIC and XIIID; and WHEREAS, the City Council has ordered the City Engineer to prepare and file an Engineer’s Annual Levy Report with the City Clerk in accordance with the Act.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council, pursuant to Chapter 3, Section 22624 of the Act, orders as follows:

1. Intention: The City Council hereby declares that its intention to seek the Annual Levy of the District pursuant to the Act, over and including the land within the District boundary, and to levy, increase, and collect assessments pursuant to the method of distributing cost as provided in the Engineer’s Report on all such land to pay the costs of the following: the operation, maintenance, and servicing of lighting, landscaping, and all appurtenant facilities and operations related thereto.

2. Description of Improvements and Any Substantial Changes Proposed: The district provides maintenance, servicing and operations of street lighting, drainage facilities, street maintenance, and landscaping which include, but are not limited to ground cover, trees, shrubs, and irrigation systems within the street right of ways and designated park area. Maintenance servicing and operation includes the costs of necessary repairs, replacements, water, electrical current trimming and pruning, scheduled slurry sealing and overlays, and any and all other items necessary for the proper maintenance and operation of the improvements.

The Engineer's Annual Levy Report on file with the City Engineer describes all new improvements or substantial changes in existing improvements. All interested persons are referred to that report for a detailed description of the improvements, boundaries of the District and the proposed assessments.

3. Boundaries and Designation: The boundaries of the District are described as the boundaries previously defined in the formation documents of the original District.

4. Public Hearing: The City Council hereby declares its intention to conduct a Public Page | 18
Hearing annually concerning the levy of assessments for the District in accordance with Chapter 3, Section 22626 of the Act.

5. Notice: The City Clerk shall give notice of the time and place of the Public Hearing to all property owners within the District by causing a summary of this Resolution to be published once in a newspaper of general circulation within the City of Salinas, twenty (20) days before the date of the public meeting and by posting a copy of this Resolution on the official bulletin board customarily used by the City Council for the posting of notices.

6. Time of Public Hearing: Notice is hereby given that a public hearing will be held by the City Council of the City of Salinas on Tuesday, June 30, 2026, at 4:00 p.m. and/or as soon thereafter as feasible in the Regular Meeting Chambers located within the City Hall Rotunda, at 200 Lincoln Avenue, Salinas.

PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk
Page | 19
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL PRELIMINARILY APPROVING THE ANNUAL ENGINEER’S LEVY REPORT FOR THE MONTE BELLA MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council has, by previous Resolutions, ordered the preparation of an Engineer’s Annual Levy Report (hereafter referred to as the “Report”) for the Monte Bella Maintenance District, (hereafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”); and WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Articles XIIIC and XIIID; and WHEREAS, the City Council has now been presented with the Report as required by Chapter 1, Article 4, Section 22566 of the Act; and
WHEREAS, the City Council has carefully examined and reviewed the Report as presented and is preliminarily satisfied with it and all of the budget items and documents as set forth therein and is satisfied on a preliminary basis that the assessments have been spread in accordance with the benefits received from the improvements, operation, maintenance and services to be performed within each benefit zone as set forth in said Report.

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

1. The above recitals are all true and correct.

2. The presented Report consists of the following elements: a description of the improvements; the annual budget; the method of apportionment that details the method of calculating each parcel’s proportional special benefit and annual assessment; a statement of the method of parcel assessment determination; a list of names and addresses of the owners of real property within the District; a diagram showing all of the parcels of real property within the District.

3. The report is hereby approved on a preliminary basis and ordered to be filed in the Office of the City Engineer as a permanent record and to remain open to public inspection.

4. That the City Clerk shall certify the passage and adoption of this Resolution, and the minutes of the meeting shall so reflect the presentation of the Report.

PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:

AYES:

NOES:

Page | 20
ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk
Page | 21
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL INITIATING PROCEEDINGS FOR ANNUAL

LEVY OF ASSESSMENTS FOR THE NORTH/EAST AREA MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council has, by previous Resolutions, formed the North/East Area Maintenance District, (hereafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”) that provides for levy and collection of assessments by the County of Monterey for the City of Salinas to pay the maintenance and services of lighting facilities, landscaping, and all appurtenant facilities and operations related thereto; and
WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Articles XIIIC and XIIID; and WHEREAS, the City Council has ordered the City Engineer to prepare and file an Engineer’s Annual Levy Report with the City Clerk in accordance with the Act.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby initiates the proceedings for the annual levy of assessments for the North/East Area Maintenance District for fiscal year 2026-2027, and preliminarily approves the Engineer’s Annual Levy Report concerning the levy of assessments for the District, as prepared in accordance with Chapter 3, Section 22622 of the Landscaping and Lighting Act of 1972.

PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk
Page | 22
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL DECLARING ITS INTENTION TO LEVY

ANNUAL ASSESSMENTS FOR THE NORTH/EAST AREA MAINTENANCE
DISTRICT FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council has, by previous Resolutions, formed the North/East Area Maintenance District, (hereafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”) that provides for levy and collection of assessments by the County of Monterey for the City of Salinas to pay the maintenance and services of lighting facilities, landscaping, and all appurtenant facilities and operations related thereto; and
WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Articles XIIIC and XIIID; and WHEREAS, the City Council has ordered the City Engineer to prepare and file an Engineer’s Annual Levy Report with the City Clerk in accordance with the Act.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council, pursuant to Chapter 3, Section 22624 of the Act, orders as follows:

1. Intention: The City Council hereby declares that its intention to seek the Annual Levy of the District pursuant to the Act, over and including the land within the District boundary, and to levy, increase, and collect assessments pursuant to the method of distributing cost as provided in the Engineer’s Report on all such land to pay the costs of the following: the operation, maintenance, and servicing of lighting, landscaping, and all appurtenant facilities and operations related thereto.

2. Description of Improvements and Any Substantial Changes Proposed: the maintenance and operation of and the furnishing of services and materials for the District improvements including any and all public landscaping and irrigation improvements on landscaped medians islands within the District, including the 30-foot wide park strips of land between the curb and right-of-way, cul-de-sac median landscaping, jogging paths, planter walls, public lighting and associated improvements.

The Engineer's Annual Levy Report on file with the City Engineer describes all new improvements or substantial changes in existing improvements. All interested persons are referred to that report for a detailed description of the improvements, boundaries of the District and the proposed assessments.

3. Boundaries and Designation: The boundaries of the District are described as the boundaries previously defined in the formation documents of the original District.

4. Public Hearing: The City Council hereby declares its intention to conduct a Public Hearing annually concerning the levy of assessments for the District in accordance with Chapter 3, Section 22626 of the Act.

Page | 23

5. Notice: The City Clerk shall give notice of the time and place of the Public Hearing to all property owners within the District by causing a summary of this Resolution to be published once in a newspaper of general circulation within the City of Salinas, twenty (20) days before the date of the public meeting and by posting a copy of this Resolution on the official bulletin board customarily used by the City Council for the posting of notices.

6. Time of Public Hearing: Notice is hereby given that a public hearing will be held by the City Council of the City of Salinas on Tuesday, June 30, 2026, at 4:00 p.m. and/or as soon thereafter as feasible in the Regular Meeting Chambers located within the City Hall Rotunda, at 200 Lincoln Avenue, Salinas.

PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk
Page | 24
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL PRELIMINARILY APPROVING THE ANNUAL ENGINEER’S LEVY REPORT FOR THE NORTH/EAST AREA
MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council has, by previous Resolutions, ordered the preparation of an Engineer’s Annual Levy Report (hereafter referred to as the “Report”) for the North/East Area Maintenance District, (hereafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”); and WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Articles XIIIC and XIIID; and WHEREAS, the City Council has now been presented with the Report as required by Chapter 1, Article 4, Section 22566 of the Act; and
WHEREAS, the City Council has carefully examined and reviewed the Report as presented and is preliminarily satisfied with it and all of the budget items and documents as set forth therein and is satisfied on a preliminary basis that the assessments have been spread in accordance with the benefits received from the improvements, operation, maintenance and services to be performed within each benefit zone as set forth in said Report.

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

1. The above recitals are all true and correct.

2. The presented Report consists of the following elements: a description of the improvements; the annual budget; the method of apportionment that details the method of calculating each parcel’s proportional special benefit and annual assessment; a statement of the method of parcel assessment determination; a list of names and addresses of the owners of real property within the District; a diagram showing all of the parcels of real property within the District.

3. The report is hereby approved on a preliminary basis and ordered to be filed in the Office of the City Engineer as a permanent record and to remain open to public inspection.

4. That the City Clerk shall certify the passage and adoption of this Resolution, and the minutes of the meeting shall so reflect the presentation of the Report.

PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:

AYES:

NOES:

Page | 25
ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk
Page | 26
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL INITIATING PROCEEDINGS FOR ANNUAL

LEVY OF ASSESSMENTS FOR THE VISTA NUEVA MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council has, by previous Resolutions, formed the Vista Nueva Maintenance District, (hereafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”) that provides for levy and collection of assessments by the County of Monterey for the City of Salinas to pay the maintenance and services of lighting facilities, landscaping, and all appurtenant facilities and operations related thereto; and
WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Articles XIIIC and XIIID; and WHEREAS, the City Council has ordered the City Engineer to prepare and file an Engineer’s Annual Levy Report with the City Clerk in accordance with the Act.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby initiates the proceedings for the annual levy of assessments for the Vista Nueva Maintenance District for fiscal year 2026-2027, and preliminarily approves the Engineer’s Annual Levy Report concerning the levy of assessments for the District, as prepared in accordance with Chapter 3, Section 22622 of the Landscaping and Lighting Act of 1972.

PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk
Page | 27
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL DECLARING ITS INTENTION TO LEVY

ANNUAL ASSESSMENTS FOR THE VISTA NUEVA MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council has, by previous Resolutions, formed the Vista Nueva Maintenance District, (hereafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”) that provides for levy and collection of assessments by the County of Monterey for the City of Salinas to pay the maintenance and services of lighting facilities, landscaping, and all appurtenant facilities and operations related thereto; and
WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Articles XIIIC and XIIID; and WHEREAS, the City Council has ordered the City Engineer to prepare and file an Engineer’s Annual Levy Report with the City Clerk in accordance with the Act.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council, pursuant to Chapter 3, Section 22624 of the Act, orders as follows:

1. Intention: The City Council hereby declares that its intention to seek the Annual Levy of the District pursuant to the Act, over and including the land within the District boundary, and to levy, increase, and collect assessments pursuant to the method of distributing cost as provided in the Engineer’s Report on all such land to pay the costs of the following: the operation, maintenance, and servicing of lighting, landscaping, and all appurtenant facilities and operations related thereto.

2. Description of Improvements and Any Substantial Changes Proposed: the installation and maintenance of a telephone/alarm system for the sanitary sewer pump station; monitor and maintain a sanitary sewer pump station, a sanitary sewer main, manhole and flushing inlet and maintain street pavement; provide for maintenance and power for street light system; and maintain subdivision fence. The Engineer's Annual Levy Report on file with the City Engineer describes all new improvements or substantial changes in existing improvements. All interested persons are referred to that report for a detailed description of the improvements, boundaries of the District and the proposed assessments.

3. Boundaries and Designation: The boundaries of the District are described as the boundaries previously defined in the formation documents of the original District.

4. Public Hearing: The City Council hereby declares its intention to conduct a Public Hearing annually concerning the levy of assessments for the District in accordance with Chapter 3, Section 22626 of the Act.

Page | 28

5. Notice: The City Clerk shall give notice of the time and place of the Public Hearing to all property owners within the District by causing a summary of this Resolution to be published once in a newspaper of general circulation within the City of Salinas, twenty (20) days before the date of the public meeting and by posting a copy of this Resolution on the official bulletin board customarily used by the City Council for the posting of notices.

6. Time of Public Hearing: Notice is hereby given that a public hearing will be held by the City Council of the City of Salinas on Tuesday, June 30, 2026, at 4:00 p.m. and/or as soon thereafter as feasible in the Regular Meeting Chambers located within the City Hall Rotunda, at 200 Lincoln Avenue, Salinas.

PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk
Page | 29
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL PRELIMINARILY APPROVING THE ANNUAL ENGINEER’S LEVY REPORT FOR THE VISTA NUEVA MAINTENANCE DISTRICT FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council has, by previous Resolutions, ordered the preparation of an Engineer’s Annual Levy Report (hereafter referred to as the “Report”) for the Vista Nueva Maintenance District, (hereafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”); and WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Articles XIIIC and XIIID; and WHEREAS, the City Council has now been presented with the Report as required by Chapter 1, Article 4, Section 22566 of the Act; and
WHEREAS, the City Council has carefully examined and reviewed the Report as presented and is preliminarily satisfied with it and all of the budget items and documents as set forth therein and is satisfied on a preliminary basis that the assessments have been spread in accordance with the benefits received from the improvements, operation, maintenance and services to be performed within each benefit zone as set forth in said Report.

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

1. The above recitals are all true and correct.

2. The presented Report consists of the following elements: a description of the improvements; the annual budget; the method of apportionment that details the method of calculating each parcel’s proportional special benefit and annual assessment; a statement of the method of parcel assessment determination; a list of names and addresses of the owners of real property within the District; a diagram showing all of the parcels of real property within the District.

3. The report is hereby approved on a preliminary basis and ordered to be filed in the Office of the City Engineer as a permanent record and to remain open to public inspection.

4. That the City Clerk shall certify the passage and adoption of this Resolution, and the minutes of the meeting shall so reflect the presentation of the Report.

PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:

AYES:

NOES:

Page | 30
ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Soratos, City Clerk

CITY OF SALINAS
PRELIMINARY ENGINEER’S REPORT

AIRPORT BUSINESS CENTER LANDSCAPING
ASSESSMENT DISTRICT NO. 87-1
FISCAL YEAR 2026-27

MONTEREY COUNTY, CALIFORNIA
May 2026

PREPARED BY
101 Progress, Suite 250
Irvine, CA 92618
www.weareharris.com
DRAFT
Engineer’s Report
Airport Business Center Landscaping Assessment District No. 87-1 City of Salinas
Fiscal Year 2026-27

TABLE OF CONTENTS
Engineer’s Certification ................................................................................................. 1 Part I - Overview ........................................................................................................... 4 Part II - Plans and Specifications ................................................................................... 6 Part III – Cost Estimate .................................................................................................. 7 Part IV – District Benefits ............................................................................................ 11 Part V – Method of Apportionment............................................................................ 14 Part VI – Assessment Diagram .................................................................................... 15 Part VII – Assessment Roll........................................................................................... 16 Appendix A - District Boundaries and Improvements ................................................ 17 Appendix B - Assessment Roll ..................................................................................... 19 DRAFT
Engineer’s Report
Airport Business Center Landscaping Assessment District No. 87-1 City of Salinas
Fiscal Year 2026-27
1 ENGINEER’S CERTIFICATION
AGENCY: THE CITY OF SALINAS
PROJECT: AIRPORT BUSINESS CENTER LANDSCAPING ASSESSMENT DISTRICT NO. 87-1 TO: THE CITY COUNCIL OF THE

CITY OF SALINAS

STATE OF CALIFORNIA
ENGINEER’S REPORT FOR FISCAL YEAR 2026-27
Pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, Article XIIID of the California Constitution (Proposition 218), and the Proposition 218 Omnibus Implementation Act and in accordance with the Resolution of Initiation, adopted by the City Council of the City of Salinas, State of California, in connection with the proceedings for:

AIRPORT BUSINESS CENTER LANDSCAPING ASSESSMENT DISTRICT NO. 87-1 (Hereinafter referred to as the “District”),
I, Tamorah Bryant, authorized representative of the District, the duly appointed Assessment Engineer submit the following Report which consists of the following seven (7) parts and Appendices:

PART I
Overview: Provides the background and reason for the District.

PART II
Plans and Specifications: Plans and specifications for the improvements are as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Engineer and are incorporated herein by reference.

PART III
Cost Estimate: An estimate of the costs of the proposed improvements, including incidental costs and expenses in connection therewith, is as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Clerk and incorporated herein by reference.

DRAFT
Engineer’s Report
Airport Business Center Landscaping Assessment District No. 87-1 City of Salinas
Fiscal Year 2026-27
2 PART IV
District Benefits: A discussion of the benefits provided by the District identifies, separates, and quantifies the general and special benefits received by each parcel in the District, for the services received and the improvements provided.

PART V
Method of Apportionment: The method of apportionment of assessments, indicating the proposed assessment of the net amount of the costs and expenses of the improvements to be assessed upon the several lots and parcels of land within the District, in proportion to the estimated benefits to be received by such lots and parcels.

PART VI
Assessment Diagram: The Diagram of the District Boundaries showing the exterior boundaries of the Assessment District and the lines and dimensions of each lot or parcel of land within the Assessment District. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of Monterey for the fiscal year to which this Report applies. The Assessor's maps and records are incorporated by reference herein and made part of this Report.

PART VII
Assessment Roll: An assessment of the estimated cost of the improvements on each benefited lot or parcel of land within the District.

Appendices
Appendix A District Boundaries and Improvements
Appendix B Assessment Roll
DRAFT
Engineer’s Report
Airport Business Center Landscaping Assessment District No. 87-1 City of Salinas
Fiscal Year 2026-27
3 In conclusion, it is my opinion that the costs and expenses of the District have been assessed to the lots and parcels within the boundaries of the District in proportion to the estimated benefits to be received by each lot or parcel from the services provided and in conformance with the assessment methodology adopted by the City Council for the levying of assessments.

DATED: May 15, 2026
Tamorah Bryant, P.E., Assessment Engineer
R.C.E. No. C67205
Engineer of Work
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment Diagram thereto attached, was filed with me on the ______day of _____ 2026.

Patricia M. Barajas, City Clerk
City of Salinas
Monterey County, California
By
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of Salinas, California, on the ______day of _____ 2026.

Patricia M. Barajas, City Clerk
City of Salinas
Monterey County, California
By
DRAFT
Engineer’s Report
Airport Business Center Landscaping Assessment District No. 87-1 City of Salinas
Fiscal Year 2026-27

4 PART I – OVERVIEW
The City of Salinas (the “City”) established the Salinas Airport Business Center Landscaping Assessment District No. 87-1 to provide a source of funding for the on-going maintenance of the amenities that were installed for the benefit of the parcels within the District. Part II of this Report describes the improvements that are maintained by the District.

The District was created under Article II, Chapter 21C of the City of Salinas Municipal Code and the Landscaping and Lighting Act of 1972 of the State of California (the “1972 Act”). As required, the City prepares an Engineer’s Report annually and holds a public hearing to allow property owners within the District to address the City Council prior to the annual levy of the assessments. This Engineer’s Report (the “Report”) sets forth the proposed assessments for Fiscal Year 2026-27 for the Salinas Airport Business Center Landscaping Assessment District No. 87-1 (the “District”).

Since the District was created prior to the passage of Proposition 218 in 1996, which established Article XIIID of the State Constitution, the District is a “grandfathered” assessment district by Section 5(a). As such it is not subject to the legal requirements of Proposition 218 so long as the assessments remain at rates that are equal to or less than the maximum assessment rates that were in place in 1996. As a result, the District does not have a built-in escalation factor to account for increasing maintenance costs resulting from inflation. Since the revenue generated through the levy of assessments has remained static while maintenance costs have increased annually, the District has had to draw upon assessment reserves to fund annual maintenance services.

The estimated cost of maintenance services for Fiscal Year 2026-27 are detailed in Part III of this Report.

All assessable parcels identified as being within the District share in both the cost and the benefits of the improvements. The costs and expenses associated with the improvements in the District are equitably spread among all benefiting parcels within the District and only parcels that receive special benefit from the improvements are assessed in proportion to benefit received. The funds collected from the assessments are dispersed and used for the services and operation provided within the District.

A discussion of District benefits is provided in Part IV of this Report and the method of apportioning District costs to the parcels of land within the District is provided in Part V of this Report. Appendix B lists the assessment amount for each parcel in the District for Fiscal Year 2026-27. It is important to note that since the District assessments do not include a built-in inflationary factor, the revenue from assessments has remained at approximately $14,470 annually. However, maintenance costs have steadily risen each year.

Annual maintenance costs within the District have been greater than assessment revenues for the last several years. The District has used reserves to offset the insufficiency of assessment revenues to pay for maintenance costs, however the District’s reserves are depleted. Furthermore, maintenance service levels have been reduced to keep costs in line with revenue.

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Engineer’s Report
Airport Business Center Landscaping Assessment District No. 87-1 City of Salinas
Fiscal Year 2026-27

5 For Fiscal Year 2026-27, there would be a shortfall of approximately $3,562 between annual assessment revenues and estimated maintenance expenditures if desired services levels were to be maintained. Since District assessment revenue will not be sufficient to maintain desired service levels, maintenance levels will continue to be provided at a reduced level as needed to balance available revenues and expenditures.

This includes a reduction in the watering of landscaped areas, as shown in Appendix A, and a reduction in the frequency of other maintenance activities. The landscaping maintenance contract agreement with Brightview Landscape Services for a reduced level of service was awarded June 18, 2024.

Maintenance levels will continue to decrease as costs increase as a result of inflation in coming years. The City has initiated discussions with District property owners regarding an assessment increase in order to increase services to the desired levels. It would require a mailed ballot property owner voting process to gain approval for the assessment increase, which would include a built-in annual inflation adjustment so that assessment rates could maintain pace with cost inflation in the future. The City expects to continue discussions with property owners as resources permit.

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Engineer’s Report
Airport Business Center Landscaping Assessment District No. 87-1 City of Salinas
Fiscal Year 2026-27

6 PART II – PLANS AND SPECIFICATIONS
The facilities, which have been constructed within the City of Salinas, and those which may be subsequently constructed, will be operated, serviced and maintained as generally described as follows:

The District assessments provide a dedicated source of funding for the maintenance and operation of and the furnishing of services and materials for the District improvements including maintenance, repair, and operation of all parkways, embankments, sprinkler systems, and landscaping, including curb and gutter damage from landscaping facilities that lie within the right-of-way of Moffett Street, La Guardia Street, and Vandenburg Street and associated improvements as allowed under the Salinas Municipal Code and the Lighting and Landscape Act of 1982 (the “Act”).

The maintenance, servicing and operation is in accordance with NPDES requirements of the City of Salinas stormwater permit, as allowed under the Salinas Municipal Code. The continued maintenance of these improvements shall be budgeted and reviewed each fiscal year and fully or partially funded through the annual assessments.

The improvements are located in three areas within the District with specific types of improvements in each area. Appendix A shows the location of all of the improvements in addition to the District boundaries, and the areas that will be maintained following a reduction in maintenance service levels.

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Engineer’s Report
Airport Business Center Landscaping Assessment District No. 87-1 City of Salinas
Fiscal Year 2026-27

7 PART III – COST ESTIMATE
Estimated costs for Fiscal Year 2026-27 for the construction, operation, servicing and maintenance of the facilities described in Part II are shown in the following table.

Adopted Amended Proposed Forecasted Forecasted
Budget Budget Budget Budget Budget FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 c Maintenance
Landscaping and Other Maintenance 2
$5,500 $5,500 $5,500 $5,500 $5,500
In-House Inspection $3,010 $3,010 $3,100 $3,193 $3,289
Supplies, Printing, Postage $0 $0 $0 $0 $0
Subtotal Maintenance: $8,510 $8,510 $8,600 $8,693 $8,789 Utilities Water $2,700 $2,700 $2,781 $2,864 $2,950 Electricity $812 $812 $836 $861 $887
Subtotal Utilities: $3,512 $3,512 $3,617 $3,726 $3,838
Administrative Expenses
Agency Administration $1,300 $1,300 $1,339 $1,379 $1,421 Professional Fees 3 $4,100 $4,100 $4,223 $4,350 $4,480
City Collection Fee 4
$0 $0 $390 $390 $390
Subtotal Administrative Expenses: $5,400 $5,400 $5,952 $6,119 $6,291 Capital Improvements $0 $0 $0 $0 $0
TOTAL EXPENDITURES: $17,422 $17,422 $18,170 $18,538 $18,917 Balance to Levy $14,468 $14,468 $14,468 $14,468 $14,468 Reserve From/(To) $2,522 $2,522 $3,562 $4,070 $4,449
Estimated Interest Earnings $432 $432 $140 $0 $0
TOTAL REVENUE AND LEVY ADJUSTMENTS $17,422 $17,422 $18,170 $18,538 $18,917 Total Parcels 39 39 39 39 39
Total Parcels Levied 39 39 39 39 39 Assessment Rate Per Acre $217.49 $217.49 $217.49 $217.49 $217.49 Maximum Rate Per Acre 5 $217.49 $217.49 $217.49 $217.49 $217.49
Total Assessments Levied $14,468 $14,468 $14,468 $14,468 $14,468 Assessment Revenue at Maximum Rates $14,468 $14,468 $14,468 $14,468 $14,468 Capacity for Additional Revenue $0 $0 $0 $0 $0 Reserve Fund Beginning Reserve Fund Balance $11,461 $11,461 $9,339 $5,918 $1,847 Surplus/(Deficit) ($2,522) ($2,522) ($3,562) ($4,070) ($4,449) Interest (1.5%) $400 $400 $140 $0 $0
Projected Ending Reserve Fund Balance: $9,339 $9,339 $5,918 $1,847 ($2,602) 1 Estimated expenditures for FY 26-27 through FY 28-29 are equal to the prior years' budgeted amount, increased by 3% unless noted otherwise. 2 Landscaping and Other Maintenance costs include Brightview Landscape Services, Inc. agreement awarded on June 18, 2024 for a reduced level of service, and other anticipated maintenance costs.
3 Professional Fees are based on Harris & Associates district administration contract. 4 City Collection Fee is based on fee of $10 per assessed parcel. 5 Maximum Rate Per Acre can't be increased unless approved by a property owner vote in compliance with Proposition 218.

ASSESSMENT REVENUE

FUND BALANCE INFORMATION
EXPENDITURES 1

REVENUE AND LEVY ADJUSTMENTS DISTRICT STATISTICS ASSESSMENT RATES DRAFT
Engineer’s Report
Airport Business Center Landscaping Assessment District No. 87-1 City of Salinas
Fiscal Year 2026-27

8 Glossary of Budget Items
A glossary of definitions for the multi-year budget table is provided below.

Expenditures
Maintenance
 Landscaping and Other Maintenance. Includes all contracted labor, material and equipment required to properly maintain the landscaping and other improvements, such as parkways, embankments, and sprinkler systems within the District. Also included are curb and gutter related to damage from landscaping facilities.
 In-House Inspection. Costs related to Inspectors on City staff who provide services such as maintenance work monitoring, documentation, and inspection.

Utilities
 Water. The cost of water required for the operation and maintenance of landscaping facilities.  Electricity. The cost of electricity required for the operation and maintenance ornamental lighting and irrigation facilities.

Administrative Expenses
 Agency Administration. The cost to the City for providing the coordination for District service, operations and maintenance, responding to public concerns and education, and administering the annual levy including, but not limited to the costs associated with City staff salaries and for time utilized for District purposes, the costs of resource materials or any other administrative expenses or fees associated with the District.
 Professional Fees. The costs of contracting with professionals to provide services specific to the levy administration and any additional administrative, legal or engineering services specific to the District.
 City Collection Fee. The cost to collect District assessments, including the fee the County charges to collect the assessments on the property tax bills. The charge is $10 per levied parcel.

Revenue and Levy Adjustments
Balance to Levy. The total assessment amount that is levied in a Benefit Zone or in the District.

Reserve From/(To). The amount transferred from the Reserve Fund to make up for all or part of a funding deficit in the District or the amount of the funding surplus in the District that is transferred to the Reserve Fund.

Estimated Interest Earnings. The combined estimated annual interest to be earned on funds held in the Operating Reserve Fund and the Capital Reserve Fund.

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Engineer’s Report
Airport Business Center Landscaping Assessment District No. 87-1 City of Salinas
Fiscal Year 2026-27

9 District Statistics
Total Parcels. The total number of parcels within the boundaries of the District.

Total Parcels Levied. The total number of parcels that are assessed.

Assessment Rates
Assessment Rate per Acre. The rate per acre levied on Non-Single Family Residence Parcels.

Maximum Rate per Acre. The maximum rate per acre that can be levied on Non-Single Family Residence Parcels.

Assessment Revenue
Total Assessments Levied. The total amount levied on all assessed parcels in the District.

Assessment Revenue at Maximum Rates. The total amount that can be levied on all assessed parcels in the District.

Capacity for Additional Revenue. If the total assessments levied are less than assessment revenue at maximum rates, this is the additional amount of revenue can be generated if the assessments are increased up to the maximum rates.

Fund Balance Information
Reserve Fund. Pursuant to Section 22569 of the 1972 Act, the operating reserve fund is utilized to operate the District from the time period of July 1 (beginning of the fiscal year) through December when the County provides the City with the first installment of assessments collected from the property tax bills, thereby eliminating the need for the City to transfer funds from non-district accounts to pay for District charges during the first six (6) months of the fiscal year. The reserve fund is also utilized for capital replacement.

Level of Maintenance Service Provided
At the time of formation of the District, assessment rates were set so that assessment revenues were sufficient to fund the maintenance services required for the maintenance of the improvements within the District that provide a special benefit to parcels within the District. However, since 2003 when a provision for adjusting the assessment rates annually for inflation was not approved by property owners, the frequency and level of maintenance services which the District has been able to provide has gradually been reduced. While the cost of labor, materials, utilities, and other services have continued to increase annually, the assessment revenues have not increased.

The table and graph below reflect the estimated decline in purchasing power since the District was formed based on the increase in the Engineering News Record Construction Cost Index for the San Francisco Area (CCI) since 1987. Common labor costs and wages in dollars per hour are primary components of CCI and are reflections of the cost of providing services in the District.

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Engineer’s Report
Airport Business Center Landscaping Assessment District No. 87-1 City of Salinas
Fiscal Year 2026-27

10 The graph illustrates the fact that the level of maintenance services that the District can currently provide from assessment revenue funding only, is less than the level that could be provided in 1987. Maintenance levels have been significantly reduced to keep District costs in alignment with District revenue.

There are various methods which may be used to address this issue including continued reductions in maintenance service levels or submitting a Proposition 218 ballot measure to the property owners in order to adjust assessment rates to fully fund District expenditures which would include a provision for annual escalation of rates to account for inflation.

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Engineer’s Report
Airport Business Center Landscaping Assessment District No. 87-1 City of Salinas
Fiscal Year 2026-27

11 PART IV – DISTRICT BENEFITS
Authorizing Legislation
The Salinas Municipal Code and the Landscape and Lighting Act (the “Act”) allows the City to establish maintenance districts for the purpose of providing certain public improvements which provide a special benefit to the parcels, including the construction, maintenance, and servicing of street lights, traffic signals, and landscaping facilities. The Salinas Municipal Code expands the types of improvements to be maintained to include “sanitary sewer system facilities, storm drainage facilities and any other works, utility or appliances necessary or convenient for providing any other public service”.

Section 22573 of the Act requires that maintenance assessments be levied according to benefit rather than according to the assessed value of property. This section states:
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.”
— Streets and Highways Code Section 22573
Furthermore, Section 22574 of the Act permits the designation of zones of benefit within any individual assessment district if “by reason of variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvements.” The amount to be assessed may be apportioned by any formula or method which fairly distributes the amount among all assessable lots or parcels.

Proposition 218 – The Grandfather Clause
The District was established prior to the adoption of Proposition 218 which established July 1, 1997 as the effective date for assessments to meet all of the requirements of Article XIII D of the California State Constitution. As a result the Airport Business Center Landscaping Assessment District No. 87-1 is “grandfathered” under Section 5 of Article XIIID which states:
“Beginning July 1, 1997, all existing, new, or increased assessments shall comply with this article… …the following assessments existing on the effective date of this article shall be exempt from the procedures and approval process set fort… …any assessment… … sidewalks, streets, sewers, water, flood control, drainage systems or vector control…” — Article XIID, Section 5
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Engineer’s Report
Airport Business Center Landscaping Assessment District No. 87-1 City of Salinas
Fiscal Year 2026-27

12 Section 5 further states that “subsequent increases in such assessments shall be subject to the procedures and approval process…” required by Proposition 218. In 2003, a proposed assessment rate increase was presented to the property owners in the District, and a majority protest was received for any increase in the assessment. Any proposed increase to the existing assessment rate will require that the District be brought into compliance with the requirements of Article XIII D and the approval of a majority of the property owners who return their assessment ballot weighted by assessment amount.

General Benefits
When the existing District assessments were established, the requirement that general benefits be separated from special benefits did not yet exist and the quantification of general benefits is not considered as it relates to the assessments. Any proposed increase in the assessment rates will require the separation of general benefits from special benefits and the quantification of general benefits.

Special Benefits
The method of apportionment (assessment methodology) approved at the time the District was formed is based on the premise that each of the assessed parcels within the District receives a special benefit from the improvements maintained and funded by annual assessments. Specifically, the assessments are for the maintenance of improvements installed as part of the original development to serve the parcels within the District. The desirability of properties within the District are enhanced by the presence of wellmaintained landscaping in close proximity to those properties. The special benefits associated with the local landscaping improvements are specifically:
 Enhanced desirability of properties through association with the improvements within the area.  Improved aesthetic appeal of properties providing a positive representation of the area.  Enhanced adaptation of the urban environment within the natural environment from adequate green space and well-maintained landscaping.
 Environmental enhancement through improved erosion resistance, dust and debris control and reduced noise and air pollution.
 Reduced vandalism and criminal activity resulting from well-maintained surroundings and amenities.
 The special enhancements of the properties that results from the above benefits.

All of the preceding special benefits contribute to a specific enhancement and desirability of each of the assessed parcels within the District.

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Engineer’s Report
Airport Business Center Landscaping Assessment District No. 87-1 City of Salinas
Fiscal Year 2026-27

13 Non-Assessed Parcels
Within the boundaries of the District, there are several types of properties that are not assessed based upon the assessment methodology that was adopted when the District was formed. These parcels include:
 Publicly owned parcels that are reserved as Public Open Space or are developed for active recreation are maintained and serviced by the District.  Publicly owned wetland parcels.
 Certain Public Utility parcels.
 Privately owned open space parcels.

Any proposed assessment rate increase in the future will require consideration of whether the nonassessed parcels receive special benefits or not, and assessments must be levied on any parcel that is deemed to receive special benefits.

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Engineer’s Report
Airport Business Center Landscaping Assessment District No. 87-1 City of Salinas
Fiscal Year 2026-27

14 PART V – METHOD OF APPORTIONMENT
The Method of Assessment outlines the formula by which property that receives special benefit from the improvements and services provided will be assessed annually. The Method of Assessment for the District follows:

The cost of maintenance, repair and operation for the District are distributed in proportion to the area properties within the District benefit. The area of each parcel is used to determine how much a property benefits from this District. The total assessable area of the District is 64.73 acres. This does not include acreage owned by governmental agencies.

The costs have been distributed to the properties within the District accordingly. All of the costs will be paid by the properties within the District, except property owned by the public agencies. APN 003-863- 002, currently owned by the City of Salinas, and APN 003-863-009, currently owned by the County of Monterey, are assessed zero $0.00.

Assessments
The maximum allowed assessment rate is $217.49 per acre. Applying the maximum allowed assessment rates and adding the City Collection Fee determines the maximum assessment levy for the District:

Total Assessable Acreage 64.73 Acres x $217.49 per Acre = $14,078.13 City Collection Fee 39 Parcels x $10.00 per Parcel = $390.00 Total Maximum Assessment Levy for the District: = $14,468.19 Each parcel may be levied up to the maximum assessment rate. The actual amount levied may be less than the maximum assessment rate.

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Engineer’s Report
Airport Business Center Landscaping Assessment District No. 87-1 City of Salinas
Fiscal Year 2026-27

15 PART VI – ASSESSMENT DIAGRAM
The District assessment diagram is on file with the City’s Office of the City Clerk and is available for public inspection.

The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County of Monterey for the fiscal year to which this Report applies.

The Assessor's maps and records are incorporated by reference herein and made part of this Report.

Airport Business Center Landscaping Assessment District No. 87-1 Boundaries Appendix A contains reduced copies of the Assessment Diagram, showing reduced maintenance area (A1) and the full improvements (A-2).

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Engineer’s Report
Airport Business Center Landscaping Assessment District No. 87-1 City of Salinas
Fiscal Year 2026-27

16 PART VII – ASSESSMENT ROLL
The assessment set forth for each parcel is shown on the Assessment Roll for the District is provided on the following pages and submitted separately, as "Assessment Roll for City of Salinas, Airport Business Center Landscaping Assessment District No. 87-1, Fiscal Year 2026-27”, which is under separate cover, and is on file in the Office of the City Clerk.

The Assessment Roll, shown in Appendix B, lists all assessed parcels within the boundaries of the District.

A list of names and addresses of the owners of all parcels within this District is shown on the last equalized Property Tax Roll of the Assessor of the County of Monterey, which by reference is hereby made a part of this report. This list is keyed to the Assessor's Parcel Numbers as shown on the Assessment Roll on file in the office of the City Clerk of the City of Salinas.

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Engineer’s Report
Airport Business Center Landscaping Assessment District No.87-1 City of Salinas
Fiscal Year 2026-27

17 APPENDIX A – A-1 REDUCED MAINTENANCE SERVICE AREAS
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Engineer’s Report
Airport Business Center Landscaping Assessment District No.87-1 City of Salinas
Fiscal Year 2026-27

18 APPENDIX A – A-2 BOUNDARY AND ALL IMPROVEMENT AREAS
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Engineer’s Report
Airport Business Center Landscaping Assessment District No. 87-1 City of Salinas
Fiscal Year 2026-27
19 APPENDIX B – ASSESSMENT ROLL
Assessor's Parcel Rate Assessment City Fee Total
Parcel Number Acreage Per Acre Amount Amount Levy Amount* 003-863-003-000 2.06 $217.49 $448.03 $10.00 $458.02
003-863-004-000 2.51 $217.49 545.90 10.00 555.90
003-863-006-000 2.57 $217.49 558.95 10.00 568.94
003-863-007-000 7.88 $217.49 1,713.83 10.00 1,723.82
003-863-013-000 1.00 $217.49 217.49 10.00 227.48
003-863-014-000 1.00 $217.49 217.49 10.00 227.48
003-863-019-000 3.15 $217.49 685.10 10.00 695.10
003-863-022-000 2.07 $217.49 450.21 10.00 460.20
003-863-024-000 2.41 $217.49 524.15 10.00 534.14
003-863-025-000 2.07 $217.49 450.21 10.00 460.20
003-863-026-000 2.06 $217.49 448.03 10.00 458.02
003-863-027-000 2.41 $217.49 524.15 10.00 534.14
003-863-028-000 8.71 $217.49 1,894.34 10.00 1,904.34
003-863-032-000 2.78 $217.49 604.62 10.00 614.62
003-863-038-000 2.10 $217.49 456.73 10.00 466.72
003-863-040-000 10.82 $217.49 2,353.19 10.00 2,363.18
003-863-041-000 2.41 $217.49 524.15 10.00 534.14
003-863-043-000 2.16 $217.49 469.78 10.00 479.78
003-864-003-000 1.76 $217.49 382.78 10.00 392.78
003-866-001-000 0.14 $217.49 30.45 10.00 40.44
003-866-002-000 0.14 $217.49 30.45 10.00 40.44
003-866-003-000 0.14 $217.49 30.45 10.00 40.44
003-866-004-000 0.14 $217.49 30.45 10.00 40.44
003-866-005-000 0.14 $217.49 30.45 10.00 40.44
003-866-006-000 0.14 $217.49 30.45 10.00 40.44
003-866-007-000 0.14 $217.49 30.45 10.00 40.44
003-866-008-000 0.14 $217.49 30.45 10.00 40.44
003-866-009-000 0.14 $217.49 30.45 10.00 40.44
003-867-001-000 0.14 $217.49 30.45 10.00 40.44
003-867-002-000 0.14 $217.49 30.45 10.00 40.44
003-867-003-000 0.14 $217.49 30.45 10.00 40.44
003-867-004-000 0.14 $217.49 30.45 10.00 40.44
003-867-005-000 0.14 $217.49 30.45 10.00 40.44
003-867-006-000 0.14 $217.49 30.45 10.00 40.44
003-867-007-000 0.14 $217.49 30.45 10.00 40.44
003-867-008-000 0.14 $217.49 30.45 10.00 40.44
003-867-009-000 0.14 $217.49 30.45 10.00 40.44
003-867-010-000 0.14 $217.49 30.45 10.00 40.44
003-867-011-000 0.14 $217.49 30.45 10.00 40.44
Totals for 39 Parcels: 64.73 $14,078.13 $390.00 $14,467.80 *Total levy amounts have been rounded down to meet the County requirement for enrollment amounts to be in even penny increments.

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CITY OF SALINAS
PRELIMINARY ENGINEER’S REPORT

MIRA MONTE MAINTENANCE DISTRICT
LANDSCAPE & LIGHTING DISTRICT NO. 2
ASSESSMENT DISTRICT NO. 2000-1
FISCAL YEAR 2026-27

MONTEREY COUNTY, CALIFORNIA
May 2026

PREPARED BY
101 Progress, Suite 250
Irvine, CA 92618
www.weareharris.com
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Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27

TABLE OF CONTENTS
Engineer’s Certification ................................................................................................. 1 Part I - Overview ........................................................................................................... 4 Part II - Plans and Specifications ................................................................................... 5 Part III – Cost Estimate .................................................................................................. 7 Part IV – District Benefits ............................................................................................ 10 Part V – Method of Apportionment............................................................................ 13 Part VI – Assessment Diagram .................................................................................... 14 Part VII – Assessment Roll........................................................................................... 15 Appendix A – Planned Capital Improvements ............................................................ 16 Appendix B - District Boundary Map .......................................................................... 17 Appendix C - Assessment Roll ..................................................................................... 18 DRAFT
Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27
1 ENGINEER’S CERTIFICATION
AGENCY: THE CITY OF SALINAS
PROJECT: MIRA MONTE MAINTENANCE DISTRICT
LANDSCAPE & LIGHTING DISTRICT NO. 2
ASSESSMENT DISTRICT NO. 2OOO-1
TO: THE CITY COUNCIL OF THE

CITY OF SALINAS

STATE OF CALIFORNIA
ENGINEER’S REPORT FOR FISCAL YEAR 2026-27
Pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, Article XIIID of the California Constitution (Proposition 218), and the Proposition 218 Omnibus Implementation Act and in accordance with the Resolution of Initiation, adopted by the City Council of the City of Salinas, State of California, in connection with the proceedings for:

MIRA MONTE MAINTENANCE DISTRICT
LANDSCAPE & LIGHTING DISTRICT NO.2
ASSESSMENT DISTRICT NO. 2OOO-1
(Hereinafter referred to as the “District”),
I, Tamorah Bryant, authorized representative of the District, the duly appointed Assessment Engineer submit the following Report which consists of the following seven (7) parts and Appendices:

PART I
Overview: Provides the background and reason for the District.

PART II
Plans and Specifications: Plans and specifications for the improvements are as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Engineer and are incorporated herein by reference.

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Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27
2 PART III
Cost Estimate: An estimate of the costs of the proposed improvements, including incidental costs and expenses in connection therewith, is as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Clerk and incorporated herein by reference.

PART IV
District Benefits: A discussion of the benefits provided by the District identifies, separates and quantifies the general and special benefits received by each parcel in the District, for the services received and the improvements provided.

PART V
Method of Apportionment: The method of apportionment of assessments, indicating the proposed assessment of the net amount of the costs and expenses of the improvements to be assessed upon the several lots and parcels of land within the District, in proportion to the estimated benefits to be received by such lots and parcels.

PART VI
Assessment Diagram: The Diagram of the District Boundaries showing the exterior boundaries of the Assessment District and the lines and dimensions of each lot or parcel of land within the Assessment District. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of Monterey for the fiscal year to which this Report applies. The Assessor's maps and records are incorporated by reference herein and made part of this Report.

PART VII
Assessment Roll: An assessment of the estimated cost of the improvements on each benefited lot or parcel of land within the District.

Appendices
Appendix A Planned Capital Improvements
Appendix B District Boundaries and Improvements
Appendix C Assessment Roll
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Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27
3 In conclusion, it is my opinion that the costs and expenses of the District have been assessed to the lots and parcels within the boundaries of the District in proportion to the estimated benefits to be received by each lot or parcel from the services provided and in conformance with the assessment methodology adopted by the City Council for the levying of assessments.

DATED: May 15 , 2026
Tamorah Bryant, P.E., Assessment Engineer
R.C.E. No. C67205
Engineer of Work
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment Diagram thereto attached, was filed with me on the ___ day of ______, 2026.

Patricia M. Barajas, City Clerk
City of Salinas
Monterey County, California
By
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of Salinas, California, on the ___ day of ______, 2026.

Patricia M. Barajas, City Clerk
City of Salinas
Monterey County, California
By
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Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27

4 PART I – OVERVIEW
The City of Salinas (the “City”) established the Mira Monte Maintenance District to provide a source of funding for the installation and the on-going maintenance of the amenities that were installed for the benefit of the parcels within the District. The District was created under Article II, Chapter 21C of the City of Salinas Municipal Code and the Landscaping and Lighting Act of 1972 of the State of California (the “1972 Act”). As required, the City prepares an Engineer’s Report annually and holds a public hearing to allow property owners within the District to address the City Council prior to the annual levy of the assessments.

This Engineer’s Report (the “Report”) sets forth the proposed assessments for Fiscal Year 2026-27 for the Mira Monte Maintenance District (the “District”). The District was created in 2000, after the passage of Proposition 218 in 1996, which established Article XIIID of the State Constitution and the District is subject to the legal requirements of Proposition 218.

The estimated cost of maintenance services for Fiscal Year 2026-27 are detailed in Part III of this Report.

All assessable parcels identified as being within the District share in both the cost and the benefits of the improvements. The costs and expenses associated with the improvements in the District are equitably spread among all benefiting parcels within the District and only parcels that receive special benefit from the improvements are assessed in proportion to benefit received. The funds collected from the assessments are dispersed and used for the services and operation provided within the District.

In any year beyond Fiscal Year 2005-06, the assessment on each parcel can increase based on the amount of the increase in the Engineering News Record Construction Cost Index 20-City Average from the previous calendar year. For Fiscal Year 2026-27, the maximum assessment rates are increasing from Fiscal Year 2025-26 maximum assessment rates by the inflation factor of 0.62%.

The City will be developing a capital improvement plan (CIP) to identify specific projects and timing of replacement of improvements within the District. Appendix A contains estimates of probable costs for replacement of authorized improvements at the end of their useful life. Although the current assessment allows for an annual increase in the Capital Reserve Fund, the City will first develop a detailed Capital Improvement Program based on assessed needs.

A discussion of District benefits is provided in Part IV of this Report and the method of apportioning District costs to the parcels of land within the District is provided in Part V of this Report and Appendix C lists the assessment amount for each parcel in the District for Fiscal Year 2026-27.

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Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27

5 PART II – PLANS AND SPECIFICATIONS
The facilities, which have been constructed within the City of Salinas, and those which may be subsequently constructed, will be operated, serviced and maintained as generally described as follows:

The assessments provide for the maintenance, repair, reconstruction, and operation of and the furnishing of services and materials for the landscaping, irrigation systems, and public improvements. Landscaping includes trees, shrubs, grass, and other ornamental vegetation. Public improvements include curbs, gutters, asphalt street improvements, sidewalks, masonry walls, concrete-paver driveway clusters, parkway strips adjacent to curbs, landscape easements, appurtenant water mains, irrigation systems, public lighting fixtures on all streets and driveway clusters listed below. This maintenance, servicing, and operation is in accordance with NPDES requirements of the City of Salinas storm water permit. The continued maintenance of these improvements shall be budgeted and reviewed each fiscal year and fully or partially funded through the annual assessments.
 Fitzgerald Street –4 cluster driveways (approx. 13,103 SF), street improvements from Hemmingway Drive to 150 feet more or less west of Bradbury, including curbs, gutters, and sidewalks (approx. 33,100 SF), and street frontage landscaping (approx. 4,250 SF); and  Southerly Portion of Hemingway Drive –3 cluster driveways (approx. 7,352 SF), and street frontage landscaping (approx. 8,336 SF) from Fitzgerald Street northerly 1,010 feet more or less to Nantucket Boulevard; and
 Southerly Portion of Bradbury Drive –11 cluster driveways (approx. 45,958 SF) and street frontage landscaping (approx. 9,435 SF) from Fitzgerald Street northerly 870 feet more or less to Nantucket Boulevard, and 1,900 feet more or less northerly to Boronda Road; and  Northerly Portion of Bradbury Drive 10 cluster driveways (approx. 58,941 SF) and street frontage landscaping (approx. 12,745 SF) from Nantucket Boulevard northerly 900 feet more or less to a cul-de-sac near Boronda Road, including “emergency access-turf block”; and  Longfellow Drive – 1 cluster driveway, and street frontage landscaping from Hemingway Drive to Bradbury Street.

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Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27

6 Maintenance, repair, reconstruction, and operation may include, but are not limited to spraying pesticides, manicure care of landscaped areas, debris removal, removal and replacement of concrete sidewalks and pavers, street resurfacing and/or reconstruction, and any and all other items of work necessary and incidentals, such as utilities, engineering, inspection, contract administration, etc., for the proper maintenance, repair, reconstruction, and operation thereof. Other incidental costs such as contingencies, assessment collection costs, legal fees, and administration are assessed to and paid by the District on the same basis as the improvements specified above.

The public improvements along Nantucket Boulevard and Parcels A, B, C, and C1, (P.G. & E.'s Tower Line right-of-way) of the Vesting Tentative Map for the Cottages of Mira Monte, a Planned Unit Development, are not included in this maintenance assessment district; they are included in the existing North/East Area Maintenance District (Landscape Maintenance District No. 1).

Appendix B shows the location of all of the improvements in addition to the District boundaries.

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Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27

7 PART III – COST ESTIMATE
Estimated costs for Fiscal Year 2026-27 for the construction, operation, servicing and maintenance of the facilities described in Part II are shown in the following table.

Adopted Amended Proposed Forecasted Forecasted
Budget Budget Budget Budget Budget
FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
c Maintenance
Landscaping Contracted Services 5
$50,000 $50,000 $51,145 $51,145 $51,145
Landscaping Extra Services $4,000 $4,000 $4,120 $4,244 $4,371 In-House Inspection $39,900 $39,900 $39,700 $40,891 $42,118 Special Supplies $1,000 $1,000 $500 $515 $530
Subtotal Maintenance: $94,900 $94,900 $95,465 $96,795 $98,164 Utilities
Water $41,200 $55,000 $42,436 $43,709 $45,020
Electricity $3,000 $2,000 $3,090 $3,183 $3,278
Subtotal Utilities: $44,200 $57,000 $45,526 $46,892 $48,299 Administrative Expenses
Agency Administration $15,800 $15,800 $16,274 $16,762 $17,265 Professional Fees 2
$4,450 $4,450 $4,584 $4,721 $4,863
Other Charges-Taxes $0 $0 $0 $0 $0
Subtotal Administrative Expenses: $20,250 $20,250 $20,858 $21,483 $22,128 Capital Improvements $0 $0 $0 $0 $0
TOTAL EXPENDITURES: $159,350 $172,150 $161,849 $165,170 $168,590 Balance to Levy $123,846 $123,846 $125,700 $125,700 $125,700 Operating Reserve From/(To) 33,504 44,050 32,222 36,027 39,988 Estimated Interest Earnings 2,000 4,254 3,927 3,443 2,903 TOTAL REVENUE AND LEVY ADJUSTMENTS: $159,350 $172,150 $161,849 $165,170 $168,590 Total Parcels 203 203 203 203 203
Total Parcels Levied 203 203 203 203 203
Assessment Rate Per Parcel $615.39 $615.39 $619.21 $619.21 $619.21 Current Rate Per Parcel $615.39 $615.39 $619.21 $619.21 $619.21 Total Assessments Levied $123,846 $123,846 $125,700 $125,700 $125,700 Assessment Revenue at Current Rates $123,846 $123,846 $125,700 $125,700 $125,700 Capacity for Additional Revenue $0 $0 $0 $0 $0
Operating Reserve Fund
Estimated Beginning Operating Reserve Fund Balance $305,817 $305,817 $261,767 $229,545 $193,518 Operating Surplus/(Deficit) ($33,504) ($44,050) ($32,222) ($36,027) ($39,988) Interest (1.5%) $7,100 $7,100 $3,927 $3,443 $2,903
Projected Ending Reserve Fund Balance: $272,313 $261,767 $229,545 $193,518 $153,529 ASSESSMENT REVENUE 6
FUND BALANCE INFORMATION7
EXPENDITURES 1

REVENUE AND LEVY ADJUSTMENTS

DISTRICT STATISTICS
ASSESSMENT RATES 3, 4
DRAFT
Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27

8 Table footnotes
Glossary of Budget Items
A glossary of definitions for the multi-year budget table is provided below.

Expenditures
Maintenance
 Landscaping Contracted and Extra Services. Includes all contracted labor, material and equipment required to properly maintain the landscaping improvements within the District.  Tree Trimming. Includes all labor, material and equipment required to provide routine tree pruning services within the landscaping improvements within the District  In-House Inspection. Costs related to Inspectors on City staff who provide services such as construction work monitoring, project documentation, inspection and testing during the construction phase of a project.
 Special Supplies. Includes the unforeseen costs of supplies and repairs that are not included in the yearly maintenance contracts.

Utilities
 Water. The cost of water required for the operation and maintenance of landscaping facilities.  Electricity. The cost of electricity required for the operation and maintenance ornamental lighting and irrigation facilities.

Administration Expenses
 Agency Administration. The cost to the City for providing the coordination for District service, operations and maintenance, responding to public concerns and education, and administering the annual levy including, but not limited to the costs associated with City staff salaries and for time utilized for District purposes, the costs of resource materials or any other administrative expenses or fees associated with the District.
1 Estimated expenditures for FY 2026-27 are equal to the greater of the prior years' adopted or amended budgeted amount increased by 3% unless noted otherwise. Estimated expenditures for FY 2027-28 and FY 2028-29 are equal to the previous year's amount increased by 3% unless noted otherwise. 2 Professional Fees are based on Harris & Associates district administration contract. 3 Assessment Rates do not include the City Collection Fee which is $10 per assessed parcel and in addition to the assessment rate. 4 In any year beyond FY 2005-06, the asssessment on each parcel can increase based on the amount of the increase in the Engineering News Record Construction Cost Index 20-City Average from the previous calendar year, which was 0.62% for December 2024 through December 2025. 5 Landscaping Contracted Services are based on the Brightview Landscape Service, Inc. agreement approved by Council June 18, 2024, and other expenditures. 6 Assessment Revenue includes the City Collection Fee which is $10 per assessed parcel in addition to the assessment rate. 7 A Capital Reserve Fund will be established for future capital improvements.

DRAFT
Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27

9  Professional Fees. The costs of contracting with professionals to provide services specific to the levy administration and any additional administrative, legal or engineering services specific to the District.
 City Collection Fee. The cost to collect District assessments, including the fee the County charges to collect the assessments on the property tax bills. The charge is $10 per levied parcel.  Other Charges-Taxes. The amount budgeted to pay for tax costs.

Revenue and Levy Adjustments
Balance to Levy. The total assessment amount that is levied in a Benefit Zone or in the District.

Operating Reserve From/(To). The amount transferred from the Operating Reserve Fund to make up for all or part of a funding deficit in the District or the amount of the funding surplus in the District that is transferred to the Operating Reserve Fund.

Estimated Interest Earnings. The combined estimated annual interest to be earned on funds held in the Operating Reserve Fund and the Capital Reserve Fund.

District Statistics
Total Parcels. The total number of parcels within the boundaries of the District.

Total Parcels Levied. The total number of parcels that are assessed.

Assessment Rates
Assessment Rate per Parcel. The rate per parcel levied on Parcels.

Current Rate per Parcel. The rate per parcel that can be levied on Parcels.

Assessment Revenue
Total Assessments Levied. The total amount levied on all assessed parcels in the District.

Assessment Revenue at Current Rates. The total amount that can be levied on all assessed parcels in the District.

Capacity for Additional Revenue. If the total assessments levied are less than assessment revenue at current rates, this is the additional amount of revenue can be generated if the assessments are increased up to the current rates.

Fund Balance Information
Operating Reserve Fund. Pursuant to Section 22569 of the 1972 Act, the operating reserve fund is utilized to operate the District from the time period of July 1 (beginning of the fiscal year) through December when the County provides the City with the first installment of assessments collected from the DRAFT
Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27

10 property tax bills, thereby eliminating the need for the City to transfer funds from non-district accounts to pay for District charges during the first six (6) months of the fiscal year.

DRAFT
Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27

11 PART IV – DISTRICT BENEFITS
Authorizing Legislation
The Salinas Municipal Code and the Landscape and Lighting Act (the “Act”) allows the City to establish maintenance districts for the purpose of providing certain public improvements which provide a special benefit to the parcels, including the construction, maintenance, and servicing of street lights, traffic signals, and landscaping facilities. The Salinas Municipal Code expands the types of improvements to be maintained to include “sanitary sewer system facilities, storm drainage facilities and any other works, utility or appliances necessary or convenient for providing any other public service”.

Section 22573 of the Act requires that maintenance assessments be levied according to benefit rather than according to the assessed value of property. This section states:
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.”
— Streets and Highways Code Section 22573
Furthermore, Section 22574 of the Act permits the designation of zones of benefit within any individual assessment district if “by reason of variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvements.” The amount to be assessed may be apportioned by any formula or method which fairly distributes the amount among all assessable lots or parcels.

Proposition 218 – The Grandfather Clause
The District was established prior to the adoption of Proposition 218 which established July 1, 1997 as the effective date for assessments to meet all of the requirements of Article XIII D of the California State Constitution. As a result, the District is “grandfathered” under Section 5 of Article XIIID which states:
“Beginning July 1, 1997, all existing, new, or increased assessments shall comply with this article… …the following assessments existing on the effective date of this article shall be exempt from the procedures and approval process set fort… …any assessment… … sidewalks, streets, sewers, water, flood control, drainage systems or vector control…” — Article XIID, Section 5
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Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27

12 Section 5 further states that “subsequent increases in such assessments shall be subject to the procedures and approval process…” required by Proposition 218.

General Benefits
Since the District improvements are entirely located within the Development or immediately adjacent to the benefited parcels, it has been determined that there is little or no general benefit to the public at large.

Special Benefits
The method of apportionment (assessment methodology) approved at the time the District was formed is based on the premise that each of the assessed parcels within the District receives a special benefit from the improvements maintained and funded by annual assessments. Specifically, the assessments are for the maintenance of improvements installed as part of the original development to serve the parcels within the District. The special benefits associated with the maintenance of landscaping, irrigation systems, and public improvements are specifically:
 Enhanced desirability of properties through association with the improvements within the area.  Improved aesthetic appeal of properties providing a positive representation of the area.  Property enhancement through improved erosion resistance, dust and debris control and reduced noise and air pollution.
 Increased sense of pride in ownership of property resulting from well-maintained improvements in proximity to the properties subject to the assessments.  Reduced vandalism and criminal activity resulting from well-maintained surroundings and amenities.
 The special enhancements of the properties that results from the above benefits.

All of the preceding special benefits contribute to a specific enhancement and desirability of each of the assessed parcels within the District.

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Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27

13 Non-Assessed Parcels
Within the boundaries of the District, there are several types of properties that are not assessed based upon the assessment methodology that was adopted when the District was formed. These parcels include:
 Publicly owned parcels that are reserved as Public Open Space or are developed as City Parks for active recreation and are maintained and serviced by the District.  Publicly owned wetland parcels.
 Certain Public Utility parcels.
 Privately owned open space parcels.
 Privately owned "sliver" parcels that have resulted from a lot line adjustment with an adjacent larger parcel. The adjacent larger parcel, of which these "sliver" parcels are a part, are assessed at the Single-Family Unit rate.
 Common area parcels within the Development.

Any proposed assessment rate increase in the future will require consideration of whether the nonassessed parcels receive special benefits or not, and assessments must be levied on any parcel that is deemed to receive special benefits.

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Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27

14 PART V – METHOD OF APPORTIONMENT
The Method of Assessment outlines the formula by which property that receives special benefit from the improvements and services provided will be assessed annually. The Method of Assessment for the District follows:

Assessments
The assessment will be spread equally among the total number of single family units (SFU) within the District boundaries, or approved SFU pursuant to Vesting Tentative Map No. 99-1 which is within the District boundaries.

In any year beyond Fiscal Year 2005-06, the assessment on each parcel can increase based on the amount of the increase in the Engineering News Record Construction Cost Index 20-City Average from the previous calendar year. For Fiscal Year 2026-27, the maximum assessment rates are increasing from Fiscal Year 2025-26 maximum assessment rates by the inflation factor of 0.62%.

The annual assessment for Single Family Unit Parcels is $619.21 per parcel (unit). All assessed parcels (units) shall be assessed an additional $10.00 for the City's collection fee.

Applying the assessment rate and adding the City Collection Fee determines the assessment levy for the District:

Single Family Unit Parcels 203 Units x $609.21 per Unit = $123,669.63 City Collection Fee 203 Parcels x $10.00 per Parcel = $2,030.00 Total Assessment Levy for the District = $125,699.63
Each parcel may be levied up to the current assessment rate.

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Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27

15 PART VI – ASSESSMENT DIAGRAM
The District assessment diagram is on file with the City’s Office of the City Clerk and is available for public inspection.

The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County of Monterey for the fiscal year to which this Report applies.

The Assessor's maps and records are incorporated by reference herein and made part of this Report.

Mira Monte Maintenance District Boundaries
A reduced copy of the Assessment Diagram is provided as Appendix B.

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Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27

16 PART VII – ASSESSMENT ROLL
The assessment set forth for each parcel shown on the Assessment Roll for the District is provided on the following pages and is submitted separately, as "Assessment Roll for City of Salinas, Mira Monte Maintenance District, Fiscal Year 2026-27”, which is under separate cover, and on file in the Office of the City Clerk.

The Assessment Roll, shown in Appendix C, lists all assessed parcels within the boundaries of the District.

A list of names and addresses of the owners of all parcels within this District is shown on the last equalized Property Tax Roll of the Assessor of the County of Monterey, which by reference is hereby made a part of this report. This list is keyed to the Assessor's Parcel Numbers as shown on the Assessment Roll on file in the office of the City Clerk of the City of Salinas.

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Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27

17 APPENDIX A – PLANNED CAPITAL IMPROVEMENTS
The following capital replacement needs for the Mira Monte Maintenance District have been identified for future implementation:

Annual Capital
Replacement Costs
Curb & Gutter 7,663 LF $ 34.30 $ 262,840.90 40 $ 6,571.02 Handicap Ramp 69 EA $ 4,900.00 $ 338,100.00 40 $ 8,452.50 Sidewalk 31,892 SF $ 9.10 $ 290,217.20 40 $ 7,255.43
Concrete Paver DW Clusters 128,970 SF $ 24.50 $ 3,159,765.00 40 $ 78,994.13 Asphalt Paving (4"AC/6"AB) 113,252 SF $ 7.70 $ 872,036.55 40 $ 21,800.91 Striping 480 SF $ 11.76 $ 5,644.80 8 $ 705.60
Landscaping (Including Irrigation System) 50,789 SF $ 11.76 $ 597,278.64 40 $ 14,931.97 Street Lighting 19 EA $ 4,830.00 $ 91,770.00 40 $ 2,294.25 Landscape Lot Amenities 0.345 AC 152,880.00 $ $ 52,743.60 30 $ 1,758.12 Total District Improvements Estimated Capital Replacement Cost $ 5,670,396.69 $ 142,763.93 Notes:
1 Capital Replacement Costs include costs reasonably and necessarily related to the planning, engineering and construction of Capital Replacement. 2 Capital Replacement Costs include 20% construction contingency, 20% Planning/Design/Administration.

Improvement Quantity
Unit of
Measure
Capital
Replacement
Unit Cost
(In $2022)1,2
Total Cost
(in $2022)
Useful
Life
(years)
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Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27

18 APPENDIX B – DISTRICT BOUNDARY MAP
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Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27
19 APPENDIX C – ASSESSMENT ROLL
The Assessment Roll is shown on the following pages.

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Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27
Assessor's Land Use Assessment City Fee Total
Parcel Number Classifcation Amount Amount Levy Amount
153-261-035 SFU $609.21 $10.00 $619.21
153-261-036 SFU 609.21 10.00 619.21
153-261-037 SFU 609.21 10.00 619.21
153-261-038 SFU 609.21 10.00 619.21
153-261-039 SFU 609.21 10.00 619.21
153-261-041 SFU 609.21 10.00 619.21
153-261-042 SFU 609.21 10.00 619.21
153-261-043 SFU 609.21 10.00 619.21
153-261-044 SFU 609.21 10.00 619.21
153-262-001 SFU 609.21 10.00 619.21
153-262-002 SFU 609.21 10.00 619.21
153-262-003 SFU 609.21 10.00 619.21
153-262-004 SFU 609.21 10.00 619.21
153-262-005 SFU 609.21 10.00 619.21
153-262-006 SFU 609.21 10.00 619.21
153-262-007 SFU 609.21 10.00 619.21
153-262-008 SFU 609.21 10.00 619.21
153-262-009 SFU 609.21 10.00 619.21
153-262-010 SFU 609.21 10.00 619.21
153-262-011 SFU 609.21 10.00 619.21
153-262-012 SFU 609.21 10.00 619.21
153-262-013 SFU 609.21 10.00 619.21
153-262-014 SFU 609.21 10.00 619.21
153-262-015 SFU 609.21 10.00 619.21
153-262-016 SFU 609.21 10.00 619.21
153-262-017 SFU 609.21 10.00 619.21
153-262-018 SFU 609.21 10.00 619.21
153-262-019 SFU 609.21 10.00 619.21
153-262-020 SFU 609.21 10.00 619.21
153-262-021 SFU 609.21 10.00 619.21
153-262-022 SFU 609.21 10.00 619.21
153-262-023 SFU 609.21 10.00 619.21
153-262-024 SFU 609.21 10.00 619.21
153-262-025 SFU 609.21 10.00 619.21
153-262-026 SFU 609.21 10.00 619.21
153-262-027 SFU 609.21 10.00 619.21
153-262-028 SFU 609.21 10.00 619.21
153-262-029 SFU 609.21 10.00 619.21
153-262-030 SFU 609.21 10.00 619.21
153-262-031 SFU 609.21 10.00 619.21
153-262-032 SFU 609.21 10.00 619.21
153-262-033 SFU 609.21 10.00 619.21
153-262-034 SFU 609.21 10.00 619.21
153-262-035 SFU 609.21 10.00 619.21
153-262-036 SFU 609.21 10.00 619.21
153-262-037 SFU 609.21 10.00 619.21
153-262-038 SFU 609.21 10.00 619.21
153-262-039 SFU 609.21 10.00 619.21
153-262-040 SFU 609.21 10.00 619.21
153-262-041 SFU 609.21 10.00 619.21
153-262-042 SFU 609.21 10.00 619.21
Appendix B
Fiscal Year 2026-27
Assessment Roll
19 DRAFT
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Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27
Assessor's Land Use Assessment City Fee Total
Parcel Number Classifcation Amount Amount Levy Amount
Appendix B
Fiscal Year 2026-27
Assessment Roll
153-262-043 SFU 609.21 10.00 619.21
153-262-044 SFU 609.21 10.00 619.21
153-262-045 SFU 609.21 10.00 619.21
153-262-046 SFU 609.21 10.00 619.21
153-262-047 SFU 609.21 10.00 619.21
153-262-048 SFU 609.21 10.00 619.21
153-262-049 SFU 609.21 10.00 619.21
153-262-050 SFU 609.21 10.00 619.21
153-262-051 SFU 609.21 10.00 619.21
153-262-052 SFU 609.21 10.00 619.21
153-262-053 SFU 609.21 10.00 619.21
153-262-054 SFU 609.21 10.00 619.21
153-262-055 SFU 609.21 10.00 619.21
153-262-056 SFU 609.21 10.00 619.21
153-262-057 SFU 609.21 10.00 619.21
153-262-058 SFU 609.21 10.00 619.21
153-262-059 SFU 609.21 10.00 619.21
153-262-060 SFU 609.21 10.00 619.21
153-262-061 SFU 609.21 10.00 619.21
153-262-062 SFU 609.21 10.00 619.21
153-262-063 SFU 609.21 10.00 619.21
153-262-064 SFU 609.21 10.00 619.21
153-262-065 SFU 609.21 10.00 619.21
153-262-066 SFU 609.21 10.00 619.21
153-262-067 SFU 609.21 10.00 619.21
153-262-068 SFU 609.21 10.00 619.21
153-262-069 SFU 609.21 10.00 619.21
153-262-070 SFU 609.21 10.00 619.21
153-262-071 SFU 609.21 10.00 619.21
153-262-072 SFU 609.21 10.00 619.21
153-262-073 SFU 609.21 10.00 619.21
153-262-074 SFU 609.21 10.00 619.21
153-262-075 SFU 609.21 10.00 619.21
153-262-076 SFU 609.21 10.00 619.21
153-262-077 SFU 609.21 10.00 619.21
153-262-078 SFU 609.21 10.00 619.21
153-262-079 SFU 609.21 10.00 619.21
153-611-001 SFU 609.21 10.00 619.21
153-611-002 SFU 609.21 10.00 619.21
153-611-003 SFU 609.21 10.00 619.21
153-611-004 SFU 609.21 10.00 619.21
153-611-005 SFU 609.21 10.00 619.21
153-611-006 SFU 609.21 10.00 619.21
153-611-007 SFU 609.21 10.00 619.21
153-611-008 SFU 609.21 10.00 619.21
153-611-009 SFU 609.21 10.00 619.21
153-611-010 SFU 609.21 10.00 619.21
153-611-011 SFU 609.21 10.00 619.21
153-611-012 SFU 609.21 10.00 619.21
153-611-013 SFU 609.21 10.00 619.21
153-611-014 SFU 609.21 10.00 619.21
20 DRAFT
Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27
Assessor's Land Use Assessment City Fee Total
Parcel Number Classifcation Amount Amount Levy Amount
Appendix B
Fiscal Year 2026-27
Assessment Roll
153-611-015 SFU 609.21 10.00 619.21
153-611-016 SFU 609.21 10.00 619.21
153-611-017 SFU 609.21 10.00 619.21
153-611-018 SFU 609.21 10.00 619.21
153-611-019 SFU 609.21 10.00 619.21
153-611-020 SFU 609.21 10.00 619.21
153-611-027 SFU 609.21 10.00 619.21
153-611-028 SFU 609.21 10.00 619.21
153-611-029 SFU 609.21 10.00 619.21
153-611-030 SFU 609.21 10.00 619.21
153-611-031 SFU 609.21 10.00 619.21
153-611-032 SFU 609.21 10.00 619.21
153-611-033 SFU 609.21 10.00 619.21
153-611-034 SFU 609.21 10.00 619.21
153-611-035 SFU 609.21 10.00 619.21
153-611-036 SFU 609.21 10.00 619.21
153-611-037 SFU 609.21 10.00 619.21
153-611-038 SFU 609.21 10.00 619.21
153-611-039 SFU 609.21 10.00 619.21
153-611-040 SFU 609.21 10.00 619.21
153-611-041 SFU 609.21 10.00 619.21
153-611-042 SFU 609.21 10.00 619.21
153-611-043 SFU 609.21 10.00 619.21
153-611-044 SFU 609.21 10.00 619.21
153-611-045 SFU 609.21 10.00 619.21
153-611-046 SFU 609.21 10.00 619.21
153-611-047 SFU 609.21 10.00 619.21
153-611-048 SFU 609.21 10.00 619.21
153-611-049 SFU 609.21 10.00 619.21
153-611-050 SFU 609.21 10.00 619.21
153-611-051 SFU 609.21 10.00 619.21
153-611-052 SFU 609.21 10.00 619.21
153-611-053 SFU 609.21 10.00 619.21
153-611-054 SFU 609.21 10.00 619.21
153-611-055 SFU 609.21 10.00 619.21
153-611-056 SFU 609.21 10.00 619.21
153-611-057 SFU 609.21 10.00 619.21
153-611-058 SFU 609.21 10.00 619.21
153-611-059 SFU 609.21 10.00 619.21
153-611-060 SFU 609.21 10.00 619.21
153-611-061 SFU 609.21 10.00 619.21
153-611-062 SFU 609.21 10.00 619.21
153-611-063 SFU 609.21 10.00 619.21
153-611-064 SFU 609.21 10.00 619.21
153-611-065 SFU 609.21 10.00 619.21
153-611-066 SFU 609.21 10.00 619.21
153-611-067 SFU 609.21 10.00 619.21
153-611-068 SFU 609.21 10.00 619.21
153-611-069 SFU 609.21 10.00 619.21
153-611-070 SFU 609.21 10.00 619.21
153-611-071 SFU 609.21 10.00 619.21
21 DRAFT
Engineer’s Report
Mira Monte Maintenance District
City of Salinas
Fiscal Year 2026-27
Assessor's Land Use Assessment City Fee Total
Parcel Number Classifcation Amount Amount Levy Amount
Appendix B
Fiscal Year 2026-27
Assessment Roll
153-612-015 SFU 609.21 10.00 619.21
153-612-016 SFU 609.21 10.00 619.21
153-612-017 SFU 609.21 10.00 619.21
153-612-018 SFU 609.21 10.00 619.21
153-612-019 SFU 609.21 10.00 619.21
153-612-020 SFU 609.21 10.00 619.21
153-612-021 SFU 609.21 10.00 619.21
153-612-022 SFU 609.21 10.00 619.21
153-612-023 SFU 609.21 10.00 619.21
153-612-024 SFU 609.21 10.00 619.21
153-612-025 SFU 609.21 10.00 619.21
153-612-026 SFU 609.21 10.00 619.21
153-612-027 SFU 609.21 10.00 619.21
153-612-028 SFU 609.21 10.00 619.21
153-613-001 SFU 609.21 10.00 619.21
153-613-002 SFU 609.21 10.00 619.21
153-613-003 SFU 609.21 10.00 619.21
153-613-004 SFU 609.21 10.00 619.21
153-613-005 SFU 609.21 10.00 619.21
153-613-006 SFU 609.21 10.00 619.21
153-613-007 SFU 609.21 10.00 619.21
153-613-008 SFU 609.21 10.00 619.21
153-613-009 SFU 609.21 10.00 619.21
153-613-010 SFU 609.21 10.00 619.21
153-613-011 SFU 609.21 10.00 619.21
153-613-012 SFU 609.21 10.00 619.21
153-613-013 SFU 609.21 10.00 619.21
153-613-014 SFU 609.21 10.00 619.21
153-613-015 SFU 609.21 10.00 619.21
153-613-016 SFU 609.21 10.00 619.21
153-613-017 SFU 609.21 10.00 619.21
153-613-018 SFU 609.21 10.00 619.21
153-613-019 SFU 609.21 10.00 619.21
153-613-020 SFU 609.21 10.00 619.21
153-613-021 SFU 609.21 10.00 619.21
153-613-022 SFU 609.21 10.00 619.21
153-613-023 SFU 609.21 10.00 619.21
153-613-024 SFU 609.21 10.00 619.21
153-613-025 SFU 609.21 10.00 619.21
153-613-026 SFU 609.21 10.00 619.21
153-613-027 SFU 609.21 10.00 619.21
153-613-028 SFU 609.21 10.00 619.21
153-613-029 SFU 609.21 10.00 619.21
153-613-030 SFU 609.21 10.00 619.21
153-613-031 SFU 609.21 10.00 619.21
153-613-032 SFU 609.21 10.00 619.21
153-613-033 SFU 609.21 10.00 619.21
153-613-034 SFU 609.21 10.00 619.21
153-613-035 SFU 609.21 10.00 619.21
153-613-036 SFU 609.21 10.00 619.21
Totals: 203 Parcels $123,669.63 $2,030.00 $125,699.63
22 DRAFT

CITY OF SALINAS
PRELIMINARY ENGINEER’S REPORT

VISTA NUEVA MAINTENANCE
ASSESSMENT DISTRICT NO. 97-2
FISCAL YEAR 2026-27

MONTEREY COUNTY, CALIFORNIA
May 2026

PREPARED BY
101 Progress, Suite 250
Irvine, CA 92618
www.weareharris.com
DRAFT
Engineer’s Report
Vista Nueva Maintenance Assessment District No. 97-2
City of Salinas
Fiscal Year 2026-27

TABLE OF CONTENTS
Engineer’s Certification ................................................................................................. 1 Part I - Overview ........................................................................................................... 4 Part II - Plans and Specifications ................................................................................... 5 Part III – Cost Estimate .................................................................................................. 6 Part IV – District Benefits .............................................................................................. 9 Part V – Method of Apportionment............................................................................ 12 Part VI – Assessment Diagram .................................................................................... 13 Part VII – Assessment Roll........................................................................................... 14 Appendix A - Planned Capital Improvements ............................................................. 15 Appendix B - District Boundaries and Improvements................................................. 16 Appendix C - Assessment Roll ..................................................................................... 17 DRAFT
1 ENGINEER’S CERTIFICATION
AGENCY: THE CITY OF SALINAS
PROJECT: VISTA NUEVA MAINTENANCE ASSESSMENT DISTRICT NO. 97-2 TO: THE CITY COUNCIL OF THE

CITY OF SALINAS

STATE OF CALIFORNIA
ENGINEER’S REPORT FOR FISCAL YEAR 2024-2
Pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, Article XIIID of the California Constitution (Proposition 218), and the Proposition 218 Omnibus Implementation Act, and provisions of the Landscaping and Lighting Act of 1972 (the "Act"), and in accordance with the Resolution of Initiation, adopted by the City Council of the City of Salinas, State of California, in connection with the proceedings for:

VISTA NUEVA MAINTENANCE ASSESSMENT DISTRICT NO. 97-2
(Hereinafter referred to as the “District”),
I, Tamorah Bryant, authorized representative of the District, the duly appointed Assessment Engineer submit the following Report which consists of the following seven (7) parts and Appendices:

PART I
Overview: Provides the background and reason for the District.

PART II
Plans and Specifications: Plans and specifications for the improvements are as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Engineer and are incorporated herein by reference.

PART III
Cost Estimate: An estimate of the costs of the proposed improvements, including incidental costs and expenses in connection therewith, is as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Clerk and incorporated herein by reference.

DRAFT
2 PART IV
District Benefits: A discussion of the benefits provided by the District identifies, separates and quantifies the general and special benefits received by each parcel in the District, for the services received and the improvements provided.

PART V
Method of Apportionment: The method of apportionment of assessments, indicating the proposed assessment of the net amount of the costs and expenses of the improvements to be assessed upon the several lots and parcels of land within the District, in proportion to the estimated benefits to be received by such lots and parcels.

PART VI
Assessment Diagram: The Diagram of the District Boundaries showing the exterior boundaries of the Assessment District and the lines and dimensions of each lot or parcel of land within the Assessment District. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of Monterey for the fiscal year to which this Report applies. The Assessor's maps and records are incorporated by reference herein and made part of this Report.

PART VII
Assessment Roll: An assessment of the estimated cost of the improvements on each benefited lot or parcel of land within the District.

Appendices
Appendix A Planned Capital Improvements
Appendix B District Boundaries and Improvements
Appendix C Assessment Roll
DRAFT
3 In conclusion, it is my opinion that the costs and expenses of the District have been assessed to the lots and parcels within the boundaries of the District in proportion to the estimated benefits to be received by each lot or parcel from the services provided and in conformance with the assessment methodology adopted by the City Council for the levying of assessments.

DATED: May 15, 2026
Tamorah Bryant, P.E., Assessment Engineer
R.C.E. No. C67205
Engineer of Work
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment Diagram thereto attached, was filed with me on the _______day of _______, 2026.

Patricia M. Barajas, City Clerk
City of Salinas
Monterey County, California
By
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of Salinas, California, on the _______day of _______, 2026.

Patricia M. Barajas, City Clerk
City of Salinas
Monterey County, California
DRAFT
By
Engineer’s Report
Vista Nueva Maintenance Assessment District No. 97-2
City of Salinas
Fiscal Year 2026-27

4 PART I – OVERVIEW
The City of Salinas (the “City”) established the Vista Nueva Maintenance District to provide a source of funding for the on-going maintenance of the amenities that were installed for the benefit of the parcels within the District. The district was created under Article II, Chapter 21C of the City of Salinas Municipal Code and the Landscaping and Lighting Act of 1972 of the State of California (the “1972 Act”). As required, the City prepares an Engineer’s Report annually and holds a public hearing to allow property owners within the District to address the City Council prior to the annual levy of the assessments.

This Engineer’s Report (the “Report”) sets forth the proposed assessments for Fiscal Year 2026-27 for the Vista Nueva Maintenance District (the “District”). Since the District was created prior to the passage of Proposition 218 in 1996, which established Article XIIID of the State Constitution, the District is a “grandfathered” assessment district by Section 5(a). As such it is not subject to the legal requirements of Proposition 218 so long as the assessments remain at rates that are equal to or less than the maximum assessment rates that were in place in 1996.

At the time the Vista Nueva District was created, a flat $12 increase per year (not to exceed a maximum total assessment of $600 per year) was incorporated in the assessment formula. The maximum assessment of $600 per year was reached in 2011 when the rate increased from $592 to $600 per year.

Therefore, the assessment rate will not increase this year as the annual assessment has reached its cap.

The estimated cost of maintenance services for Fiscal Year 2026-27 are detailed in Part III of this Report.

As shown in the proposed Fiscal Year 2026-27 budget, assessment revenues will be approximately $4,445 less than budgeted expenses, which will be drawn from the reserve fund. With this draw, the reserve fund will decrease to be approximately $109,048. The City has prepared a capital improvement plan for Fiscal Year 2026-27 and beyond, which is anticipated to further reduce the reserve fund balance.

All assessable parcels identified as being within the District share in both the cost and the benefits of the improvements. The costs and expenses associated with the improvements in the District are equitably spread among all benefiting parcels within the District and only parcels that receive special benefit from the improvements are assessed in proportion to benefit received. The funds collected from the assessments are dispersed and used for the services and operation provided within the District. A discussion of District benefits is provided in Part IV of this Report and the method of apportioning District costs to the parcels of land within the District is provided in Part V of this Report and Appendix C lists the assessment amount for each parcel in the District for Fiscal Year 2026-27.

DRAFT
Engineer’s Report
Vista Nueva Maintenance Assessment District No. 97-2
City of Salinas
Fiscal Year 2026-27

5 PART II – PLANS AND SPECIFICATIONS
The facilities, which have been constructed within the City of Salinas, and those which may be subsequently constructed, will be operated, serviced and maintained are generally described as follows:

The assessments provide for the installation and maintenance of a telephone/alarm system for the Sanitary Sewer Pump Station; monitor and maintain a sanitary sewer pump station twice a week, and a sanitary sewer main four times a year with City forces, or as needed; adjust manhole and flushing inlet covers to existing street grade; maintain street pavement by public works contract; provide maintenance and power for a new street light system; and maintain subdivision fence.

In addition, the District also funds all maintenance, servicing and operation in accordance with NPDES requirements of the City of Salinas storm water permit. The continued maintenance of these improvements shall be budgeted and reviewed each fiscal year and fully or partially funded through the annual assessments.

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Engineer’s Report
Vista Nueva Maintenance Assessment District No. 97-2
City of Salinas
Fiscal Year 2026-27

6 PART III – COST ESTIMATE
Estimated costs for Fiscal Year 2026-27 for the construction, operation, servicing and maintenance of the facilities described in Part II are shown in Table 1.

Table 1: Multi-Year Budget
Adopted Amended Proposed Forecasted Forecasted
Budget Budget Budget Budget Budget
FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
EXPENDITURES 1 Maintenance
Equipment and Other Maintenance $6,500 $6,500 $6,695 $6,896 $7,103 Other Outside Services $1,000 $1,000 $1,030 $1,061 $1,093 Equipment Rental $5,000 $5,000 $5,150 $5,305 $5,464
Supplies, Printing, Postage $0 $0 $0 $0 $0
Subtotal Maintenance: $12,500 $12,500 $12,875 $13,261 $13,659 Utilities
Electricity - Street Lights $1,000 $1,000 $1,030 $1,061 $1,093 Electricity $1,200 $1,200 $1,236 $1,273 $1,311
Subtotal Utilities: $2,200 $2,200 $2,266 $2,334 $2,404
Administrative Expenses
Agency Administration $3,000 $3,000 $3,090 $3,183 $3,278 Professional Fees 2
$5,450 $5,450 $5,614 $5,782 $5,955
Subtotal Administrative Expenses: $8,450 $8,450 $8,704 $8,965 $9,234 Capital Improvements $15,000 $15,000 $10,000 $10,000 $10,000 TOTAL EXPENDITURES: $38,150 $38,150 $33,845 $34,560 $35,297

REVENUE AND LEVY ADJUSTMENTS
Balance to Levy $29,890 $29,890 $29,890 $29,890 $29,890 Reserve From/(To) $1,560 $1,560 $2,129 $3,027 $4,034
Estimated Interest Earnings $6,700 $6,700 $1,825 $1,643 $1,373 TOTAL REVENUE AND LEVY ADJUSTMENTS: $38,150 $38,150 $33,845 $34,560 $35,297

DISTRICT STATISTICS
Total Parcels 49 49 49 49 49
Total Parcels Levied 49 49 49 49 49
ASSESSMENT RATES 3 Assessment Rate per Parcel $610.00 $610.00 $610.00 $610.00 $610.00 Maximum Rate per Parcel 4 $610.00 $610.00 $610.00 $610.00 $610.00 ASSESSMENT REVENUE 5
Total Assessments Levied $29,890 $29,890 $29,890 $29,890 $29,890 Assessment Revenue at Maximum Rates $29,890 $29,890 $29,890 $29,890 $29,890 Capacity for Additional Revenue $0 $0 $0 $0 $0

FUND BALANCE INFORMATION
Reserve Fund
Estimated Beginning Reserve Fund Balance $193,117 $193,117 $121,667 $109,538 $91,511 Transfers In/(Out) ($11,150) ($69,890) ($10,000) ($15,000) ($15,000) Surplus/(Deficit) (1,560) (1,560) (2,129) (3,027) (4,034) Projected Ending Reserve Fund Balance: $180,407 $121,667 $109,538 $91,511 $72,477 1 Estimated expenditures for FY 26-27 are equal to the greater of the prior years' budgeted amount or amended amount, increased by 3% unless noted otherwise. Estimated expenditures for FY 27-28 and 28-29 are equal to the previous years' amount, increased by 3% unless noted otherwise. 2 Professional Fees are based on Harris & Associates district administration contract. 3 Assessment Rates do not include the City Collection Fee which is $10 per assessed parcel and in addition to the assessment rate. 4 Maximum Rate Per Parcel can't be increased unless approved by a property owner vote in compliance with Proposition 218. 5 Assessment Revenue includes the City Collection Fee which is $10 per assessed parcel in addition to the assessment rate.

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Engineer’s Report
Vista Nueva Maintenance Assessment District No. 97-2
City of Salinas
Fiscal Year 2026-27

7 Glossary of Budget Items
A glossary of definitions for the multi-year budget table is provided below.

Expenditures
Maintenance
 Equipment and Other Maintenance. Includes all contracted labor, material and equipment required to properly maintain the Sanitary Sewer Pump Station within the District.  Other Outside Services. Costs related to additional services in addition to City staff who provide services such as monitoring, project documentation, inspection and testing of the Sewer Pump Station.
 Equipment Rental. Includes costs related to the rental of equipment to maintain the Sanitary Sewer Pump Station.
 Contingencies. This item is to allow for unforeseen expenses related to facilities and improvements needing additional services or replacement.

Utilities
 Leased Lines. The cost of leased lines for the telephone/alarm system that monitors the Pump station.
 Electricity – Street Lights. The cost of electricity required for the operation and maintenance of the streetlights.
 Electricity. The cost of electricity for the equipment that monitors the Pump Station.

Administrative Expenses
 Agency Administration. The cost to the City for providing the coordination for District service, operations and maintenance, responding to public concerns and education, and administering the annual levy including, but not limited to the costs associated with City staff salaries and for time utilized for District purposes, the costs of resource materials or any other administrative expenses or fees associated with the District.
 Professional Fees. The costs of contracting with professionals to provide services specific to the levy administration and any additional administrative, legal or engineering services specific to the District.
 City Collection Fee. The cost to collect District assessments, including the fee the County charges to collect the assessments on the property tax bills. The charge is $10 per levied parcel.  Capital Improvements. The amount planned for constructing, repairing or replacing capital items in the District based on the City’s FY 2023-24 Adopted CIP Budget Document, which is included in Appendix A.

DRAFT
Engineer’s Report
Vista Nueva Maintenance Assessment District No. 97-2
City of Salinas
Fiscal Year 2026-27

8 Revenue and Levy Adjustments
Balance to Levy. The total assessment amount that is levied in the District.

Reserve From/(To). The amount transferred from the Reserve Fund to make up for all or part of a funding deficit in the District or the amount of the funding surplus in the District that is transferred to the Reserve Fund.

Estimated Interest Earnings. The combined estimated annual interest to be earned on funds held in the Reserve Fund.

District Statistics
Total Parcels. The total number of parcels within the boundaries of the District.

Total Parcels Levied. The total number of parcels that are assessed.

Assessment Rates
Assessment Rate per Single Family Unit. The rate per residential unit levied on Single Family Residence Parcels.

Maximum Rate per Single Family Unit. The maximum rate per residential unit that can be levied on Single Family Residence Parcels.

Assessment Revenue
Total Assessments Levied. The total amount levied on all assessed parcels in the District.

Assessment Revenue at Maximum Rates. The total amount that can be levied on all assessed parcels in the District.

Capacity for Additional Revenue. If the total assessments levied are less than assessment revenue at maximum rates, this is the additional amount of revenue can be generated if the assessments are increased up to the maximum rates.

Fund Balance Information
Reserve Fund. Pursuant to Section 22569 of the 1972 Act, the operating reserve fund is utilized to operate the District from the time period of July 1 (beginning of the fiscal year) through December when the County provides the City with the first installment of assessments collected from the property tax bills, thereby eliminating the need for the City to transfer funds from non-district accounts to pay for District charges during the first six (6) months of the fiscal year.

DRAFT
Engineer’s Report
Vista Nueva Maintenance Assessment District No. 97-2
City of Salinas
Fiscal Year 2026-27

9 PART IV – DISTRICT BENEFITS
Authorizing Legislation
The Salinas Municipal Code and the Landscape and Lighting Act (the “Act”) allows the City to establish maintenance districts for the purpose of providing certain public improvements which provide a special benefit to the parcels, including the construction, maintenance, and servicing of street lights, traffic signals, and landscaping facilities. The Salinas Municipal Code expands the types of improvements to be maintained to include “sanitary sewer system facilities, storm drainage facilities and any other works, utility or appliances necessary or convenient for providing any other public service.” Section 22573 of the Act requires that maintenance assessments be levied according to benefit rather than according to the assessed value of property. This section states:
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.”
— Streets and Highways Code Section 22573
Furthermore, Section 22574 of the Act permits the designation of zones of benefit within any individual assessment district if “by reason of variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvements.” The amount to be assessed may be apportioned by any formula or method which fairly distributes the amount among all assessable lots or parcels.

Proposition 218 – The Grandfather Clause
The Vista Nueva Maintenance District was established prior to the adoption of Proposition 218 which established July 1, 1997 as the effective date for assessments to meet all of the requirements of Article XIII D of the California State Constitution. As a result, the Vista Nueva Maintenance District is “grandfathered” under Section 5 of Article XIIID which states:
“Beginning July 1, 1997, all existing, new, or increased assessments shall comply with this article… …the following assessments existing on the effective date of this article shall be exempt from the procedures and approval process set fort… …any assessment… … sidewalks, streets, sewers, water, flood control, drainage systems or vector control…” — Article XIID, Section 5
DRAFT
Engineer’s Report
Vista Nueva Maintenance Assessment District No. 97-2
City of Salinas
Fiscal Year 2026-27

10 Section 5 further states that “subsequent increases in such assessments shall be subject to the procedures and approval process…” required by Proposition 218.

General Benefits
Since the District improvements are entirely located within the Vista Nueva Subdivision or immediately adjacent to the benefited parcels, it has been determined that there is little or no general benefit to the public at large.

Special Benefits
The method of apportionment (assessment methodology) approved at the time the District was formed is based on the premise that each of the assessed parcels within the District receives a special benefit from the improvements maintained and funded by annual assessments. Specifically, the assessments are for the maintenance of improvements installed as part of the original development to serve the parcels within the District. The special benefits associated with the improvements are:
 Increased sewer reliability to the properties due to minimized disruption in sewer disposal.  Increased functioning, minimized disruption, and early detection of issues through the pump station alarm system.
 Enhanced desirability of properties through association with the improvements within the area.  Improved aesthetic appeal of properties providing a positive representation of the area.  Increased sense of pride in ownership of property resulting from well-maintained improvements associated with the properties.
 Reduced vandalism and criminal activity resulting from well-maintained surroundings and amenities.

Property enhancement through improved erosion resistance, dust and debris control and reduced noise and air pollution. All of the preceding special benefits contribute to a specific enhancement and desirability of each of the assessed parcels within the District.

DRAFT
Engineer’s Report
Vista Nueva Maintenance Assessment District No. 97-2
City of Salinas
Fiscal Year 2026-27

11 Non-Assessed Parcels
Within the boundaries of the District, there are types of properties that are not assessed based upon the assessment methodology that was adopted when the District was formed. These parcels include:
 Common areas owned by the Home-Owners Association
Any proposed assessment rate increase in the future will require consideration of whether the nonassessed parcels receive special benefits or not, and assessments must be levied on any parcel that is deemed to receive special benefits.

DRAFT
Engineer’s Report
Vista Nueva Maintenance Assessment District No. 97-2
City of Salinas
Fiscal Year 2026-27

12 PART V – METHOD OF APPORTIONMENT
The Method of Assessment outlines the formula by which property that receives special benefit from the improvements and services provided will be assessed annually. The Method of Assessment for the District based on the methodology established when the district was formed is as follows:

Assessments
The assessment will be spread equally to each parcel. Beginning with fiscal Year 1997/98, each parcel's assessment was $480 per year ($40 per month) and escalated $12 each year to the maximum allowed payment of $600 per year ($50/month), including administrative fees. Each parcel may be levied up to the maximum assessment rate.

DRAFT
Engineer’s Report
Vista Nueva Maintenance Assessment District No. 97-2
City of Salinas
Fiscal Year 2026-27

13 PART VI – ASSESSMENT DIAGRAM
The District assessment diagram is on file with the City’s Office of the City Clerk and is available for public inspection.

The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County of Monterey for the fiscal year to which this Report applies.

The Assessor's maps and records are incorporated by reference herein and made part of this Report.

Vista Nueva Maintenance Assessment District No. 97-2 Boundaries A reduced copy of the Assessment Diagram is provided as Appendix B.

DRAFT
Engineer’s Report
Vista Nueva Maintenance Assessment District No. 97-2
City of Salinas
Fiscal Year 2026-27

14 PART VII – ASSESSMENT ROLL
The assessment set forth for each parcel is shown on the Assessment Roll for the District is provided on the following pages, and is submitted separately, as "Assessment Roll for City of Salinas, Vista Nueva Maintenance Assessment District No. 97-2, Fiscal Year 2026-27”, which is under separate cover, and on file in the Office of the City Clerk.

The Assessment Roll, shown in Appendix C, lists all assessed parcels within the boundaries of the District.

A list of names and addresses of the owners of all parcels within the District is shown on the last equalized Property Tax Roll of the Assessor of the County of Monterey, which by reference is hereby made a part of this report. This list is keyed to the Assessor's Parcel Numbers as shown on the Assessment Roll on file in the office of the City Clerk of the City of Salinas.

DRAFT
Engineer’s Report
Vista Nueva Maintenance Assessment District No. 97-2
City of Salinas
Fiscal Year 2026-27

15 APPENDIX A – PLANNED CAPITAL IMPROVEMENTS
Note: The funding of $150,000 for Capital Improvement Project 9056 was applied as an expenditure in FY23-24, and the FY24-25 expenditure has been revised to $10,000.

DRAFT
Engineer’s Report
Vista Nueva Maintenance Assessment District No. 97-2
City of Salinas
Fiscal Year 2026-27

16 APPENDIX B – DISTRICT BOUNDARIES & IMPROVEMENTS
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Engineer’s Report
Vista Nueva Maintenance Assessment District No. 97-2
City of Salinas
Fiscal Year 2026-27
17 APPENDIX C – ASSESSMENT ROLL
The Assessment Roll is shown on the following pages.

Assessor's Rate Assessment City Fee Total
Parcel Number Per Parcel Amount Amount Levy Amount 004-342-001-000 $600.00 $600.00 $10.00 $610.00 004-342-002-000 $600.00 $600.00 $10.00 $610.00
004-342-003-000 $600.00 $600.00 $10.00 $610.00
004-342-004-000 $600.00 $600.00 $10.00 $610.00
004-342-005-000 $600.00 $600.00 $10.00 $610.00
004-342-006-000 $600.00 $600.00 $10.00 $610.00
004-342-007-000 $600.00 $600.00 $10.00 $610.00
004-342-008-000 $600.00 $600.00 $10.00 $610.00
004-342-009-000 $600.00 $600.00 $10.00 $610.00
004-342-010-000 $600.00 $600.00 $10.00 $610.00
004-342-011-000 $600.00 $600.00 $10.00 $610.00
004-342-012-000 $600.00 $600.00 $10.00 $610.00
004-342-013-000 $600.00 $600.00 $10.00 $610.00
004-342-014-000 $600.00 $600.00 $10.00 $610.00
004-342-015-000 $600.00 $600.00 $10.00 $610.00
004-342-016-000 $600.00 $600.00 $10.00 $610.00
004-342-017-000 $600.00 $600.00 $10.00 $610.00
004-342-018-000 $600.00 $600.00 $10.00 $610.00
004-342-019-000 $600.00 $600.00 $10.00 $610.00
004-342-020-000 $600.00 $600.00 $10.00 $610.00
004-342-021-000 $600.00 $600.00 $10.00 $610.00
004-342-022-000 $600.00 $600.00 $10.00 $610.00
004-342-023-000 $600.00 $600.00 $10.00 $610.00
004-342-024-000 $600.00 $600.00 $10.00 $610.00
004-342-029-000 $600.00 $600.00 $10.00 $610.00
004-342-030-000 $600.00 $600.00 $10.00 $610.00
004-342-031-000 $600.00 $600.00 $10.00 $610.00
004-342-032-000 $600.00 $600.00 $10.00 $610.00
004-342-033-000 $600.00 $600.00 $10.00 $610.00
004-342-034-000 $600.00 $600.00 $10.00 $610.00
004-342-035-000 $600.00 $600.00 $10.00 $610.00
004-342-036-000 $600.00 $600.00 $10.00 $610.00
004-342-037-000 $600.00 $600.00 $10.00 $610.00
004-342-038-000 $600.00 $600.00 $10.00 $610.00
004-342-039-000 $600.00 $600.00 $10.00 $610.00
004-342-040-000 $600.00 $600.00 $10.00 $610.00
004-342-041-000 $600.00 $600.00 $10.00 $610.00
004-342-042-000 $600.00 $600.00 $10.00 $610.00
004-342-043-000 $600.00 $600.00 $10.00 $610.00
004-342-044-000 $600.00 $600.00 $10.00 $610.00
004-342-045-000 $600.00 $600.00 $10.00 $610.00
004-342-046-000 $600.00 $600.00 $10.00 $610.00
004-342-047-000 $600.00 $600.00 $10.00 $610.00
004-342-048-000 $600.00 $600.00 $10.00 $610.00
004-342-049-000 $600.00 $600.00 $10.00 $610.00
004-342-052-000 $600.00 $600.00 $10.00 $610.00
004-342-053-000 $600.00 $600.00 $10.00 $610.00
004-342-054-000 $600.00 $600.00 $10.00 $610.00
004-342-055-000 $600.00 $600.00 $10.00 $610.00
Totals for 49 Parcels: $29,400.00 $490.00 $29,890.00
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CITY OF SALINAS
PRELIMINARY ENGINEER’S REPORT

MONTE BELLA MAINTENANCE DISTRICT
FISCAL YEAR 2026-27

MONTEREY COUNTY, CALIFORNIA
May 2026

PREPARED BY
101 Progress, Suite 250
Irvine, CA 92618
www.weareharris.com
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Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27

TABLE OF CONTENTS
Engineer’s Certification ................................................................................................. 1 Part I - Overview ........................................................................................................... 4 Part II - Plans and Specifications ................................................................................... 5 Part III – Cost Estimate ................................................................................................ 10 Part IV – District Benefits ............................................................................................ 16 Part V – Method of Apportionment............................................................................ 20 Part VI – Assessment Diagram .................................................................................... 24 Part VII – Assessment Roll........................................................................................... 25 Appendix A – Monte Bella Capital Improvement Plan ............................................... 26 Appendix B – District Boundary .................................................................................. 27 Appendix C – Park Service Area .................................................................................. 28 Appendix D – Assessment Roll .................................................................................... 29 DRAFT
Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27
1 ENGINEER’S CERTIFICATION
AGENCY: THE CITY OF SALINAS
PROJECT: MONTE BELLA MAINTENANCE DISTRICT
TO: THE CITY COUNCIL OF THE

CITY OF SALINAS

STATE OF CALIFORNIA
ENGINEER’S REPORT FOR FISCAL YEAR 2026-27
Pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, Article XIIID of the California Constitution (Proposition 218), and the Proposition 218 Omnibus Implementation Act and in accordance with the Resolution of Initiation, adopted by the City Council of the City of Salinas, State of California, in connection with the proceedings for:

MONTE BELLA MAINTENANCE DISTRICT
(Hereinafter referred to as the “District”),
I, Tamorah Bryant, authorized representative of the District, the duly appointed Assessment Engineer submit the following Report which consists of the following seven (7) parts and Appendices:

PART I
Overview: Provides the background and reason for the District.

PART II
Plans and Specifications: Plans and specifications for the improvements are as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Engineer and are incorporated herein by reference.

PART III
Cost Estimate: An estimate of the costs of the proposed improvements, including incidental costs and expenses in connection therewith, is as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Clerk and incorporated herein by reference.

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Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27
2 PART IV
District Benefits: A discussion of the benefits provided by the District identifies, separates and quantifies the general and special benefits received by each parcel in the District, for the services received and the improvements provided.

PART V
Method of Apportionment: The method of apportionment of assessments, indicating the proposed assessment of the net amount of the costs and expenses of the improvements to be assessed upon the several lots and parcels of land within the District, in proportion to the estimated benefits to be received by such lots and parcels.

PART VI
Assessment Diagram: The Diagram of the District Boundaries showing the exterior boundaries of the Assessment District and the lines and dimensions of each lot or parcel of land within the Assessment District. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of Monterey for the fiscal year to which this Report applies. The Assessor's maps and records are incorporated by reference herein and made part of this Report.

PART VII
Assessment Roll: An assessment of the estimated cost of the improvements on each benefited lot or parcel of land within the District.

Appendices
Appendix A Monte Bella Capital Improvement Plan
Appendix B District Boundary
Appendix C Park Service Area
Appendix D Assessment Roll
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Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27
3 In conclusion, it is my opinion that the costs and expenses of the District have been assessed to the lots and parcels within the boundaries of the District in proportion to the estimated benefits to be received by each lot or parcel from the services provided and in conformance with the assessment methodology adopted by the City Council for the levying of assessments.

DATED: May 15, 2026
_____________________________________________
Tamorah Bryant, P.E., Assessment Engineer
R.C.E. No. C67205
Engineer of Work
State of California
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment Diagram thereto attached, was filed with me on the ____ day of ______ 2026.

Patricia M. Barajas, City Clerk
City of Salinas
Monterey County, California
By
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of Salinas, California, on the ____ day of ______ 2026.

Patricia M. Barajas, City Clerk
City of Salinas
Monterey County, California
By
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Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27

4 PART I – OVERVIEW
The City of Salinas (the “City”) established the Monte Bella Maintenance District to provide a source of funding for the on-going maintenance of the amenities that were installed for the benefit of the parcels located in the Monte Bella development (the “Development”) and within the District. The District was created under Article II, Chapter 21C of the City of Salinas Municipal Code, the Landscaping and Lighting Act of 1972 of the State of California (the “1972 Act”), and the Benefit Assessment Act of 1982 (the “1982 Act”). As required, the City prepares an Engineer’s Report annually and holds a public hearing to allow property owners within the District to address the City Council prior to the annual levy of the assessments.

This Engineer’s Report (the “Report”) sets forth the proposed assessments for Fiscal Year 2026-27 for the Monte Bella Maintenance District (the “District”). The District was created in 2004, after the passage of Proposition 218 in 1996, which established Article XIIID of the State Constitution and the District is subject to the legal requirements of Proposition 218. The District assessments include built-in inflationary factor based on the annual change in the Consumer Price Index (“CPI”). The assessment may be levied each year up to the maximum assessment rates. Proposed assessments that are greater than the maximum assessment rates require a property-owner vote approving of the new rates before being levied. For Fiscal Year 2026-27, the assessment rate remains the same as it was in FY 2025-2026 while the maximum assessment rates are increasing by the inflation factor of 3.8%. Part V of this Report provides a discussion of the inflation factor in more detail.

The estimated cost of maintenance services for Fiscal Year 2026-27 are detailed in Part III of this Report.

All assessable parcels identified as being within the District share in both the cost and the benefits of the improvements. The costs and expenses associated with the improvements in the District are equitably spread among all benefiting parcels within the District and only parcels that receive special benefit from the improvements are assessed in proportion to benefit received. The funds collected from the assessments are dispersed and used for the services and operation provided within the District. A discussion of District benefits is provided in Part IV of this Report, the method of apportioning District costs to the parcels of land within the District is provided in Part V of this Report and Appendix D lists the assessment amount for each parcel in the District for Fiscal Year 2026-27.

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Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27

5 PART II – PLANS AND SPECIFICATIONS
All of the improvements are allowed under the Salinas Municipal Code and the Lighting and Landscape Act of 1972 (the “Act”). The continued maintenance of these improvements shall be budgeted and reviewed each fiscal year and fully or partially funded through the annual assessments.

The assessments provide a dedicated source of funding for the maintenance and operation of the District improvements, including landscaping along the street corridors within the Development and along portions of Sconberg Parkway, Freedom Parkway and Williams Road that are directly adjacent to the Development.

Other improvements maintained by the District include local street lighting (including energy costs), routine street maintenance and associated appurtenances located within the public right-of-ways.

There are five distinct types of improvements in the District which are: street landscaping; street lighting; parks, open space and detention basin landscaping; street maintenance; and public improvements. Each type of improvement is budgeted and assessed as a District benefit zone (“Benefit Zone”).

Street Landscaping
The District provides maintenance, servicing and operation of approximately 458,075 square feet of landscaping along the street corridors within the Monte Bella Development and along portions of Sconberg Parkway, Freedom Parkway and Williams Road that are directly adjacent to the Development.

The street landscaping improvements include, but are not limited to, ground cover, trees and shrubs, and irrigation systems within the street right of ways. Maintenance, servicing and operation includes the costs of necessary repairs, replacements, water, electrical current, trimming and pruning, care supervision and any and all other items necessary for the proper maintenance and operation of the improvements. Table 1 includes street landscaping improvements that are maintained by the District.

Table 1: Street Landscaping Improvements
Street Landscaping Area
Monte Bella Boulevard Both sides of the roadway from Sconberg Parkway to Williams Road Tuscany Boulevard Both sides of the entire length of the roadway Padova Drive Both sides of the entire length of the roadway Pavia Way Both sides of the entire length of the roadway Palermo Drive Both sides of the entire length of the roadway Williams Drive
The southeast side of the roadway from Freedom Parkway to the southwestern corner boundary of the District
Freedom Parkway
The southwest side of the roadway and the center island from Williams Road to Sconberg Parkway
Sconberg Parkway
The northwest side of the roadway and the center island from Freedom Parkway to Alisal Road
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Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27

6 The District also provides routine tree pruning services within the landscaped areas of the boulevards and local streets of the District and within the Park. The improvement costs associated with tree trimming will be assessed to the benefited District parcels and reserved for over an anticipated five year pruning cycle.

Street Lighting
The District currently provides maintenance, servicing and operation of 359 street lights. Maintenance, servicing and operation includes the costs of necessary repairs, replacements, care supervision and any and all other items necessary for the proper maintenance and operation of the improvements. The following Table 2 shows the number of street lights by lumens that is in operation in the District:

Table 2: Street Lights in Operation
Street Light Type No. of Lights
6,300 Lumens 327
9,500 Lumens 30
22,000 Lumens 2
Total Lights: 359
A map containing the location of the street lighting and traffic signal facilities is on file in the office of the Director of Development and Engineering Services for the City and is made part of this Report by reference.

Park, Open Space, Detention Basin and Bioswale Landscaping The District provides maintenance, servicing and operation of 8.2 acres of park landscaping, 6,816 square feet of local open space landscaping and 65,190 square feet of detention basin landscaping that will also serve as a local park. This maintenance, servicing and operation is in accordance with NPDES requirements of the City of Salinas stormwater permit. Maintenance, servicing and operation includes the costs of necessary repairs, replacements, water, electrical current, trimming and pruning, care supervision and any and all other items necessary for the proper maintenance and operation of the improvements. Tabe 3 on the following page outlines the location of park, open space and detention basin landscaping improvements.

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Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27

7 Table 3: Parks, Open Space and Detention Basin Landscaping Improvements Amenity Landscape Area Location
Community Park 8.20 Acres The community park is located east of Monte Bella Boulevard between Tuscany Boulevard and Palermo Drive
Open Space 0.16 Acres
Three open space areas are located at the southeast end of Del Monte Avenue, the east end of Courtside Drive and the east end of Argentine Drive
Detention Basins 1.50 Acres
One on-site detention basin is located on the southwest corner of Monte Bella Boulevard and Sconberg Parkway. There are two off-site detention basins. One is located adjacent to the on-site detention basin across Sconberg Parkway and the other is located at the southeasterly corner of Williams Road and Freedom Parkway A map containing the location of the park, open space and retention basin landscaping is on file in the office of the Director of Development and Engineering Services for the City and is made part of this Report by reference.

On June 4, 2019 City Council accepted the Monte Bella Subdivision Phase 5A improvements for maintenance and responsibility. The development requires continuous landscape maintenance of bioswales at several locations that are now maintained by the Monte Bella Maintenance District. The approximate locations of the bioswales are shown in the following illustration:

Approximate locations of bioswales that are
maintained by the Monte Bella Maintenance District
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Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27

8 Street Maintenance
The District provides maintenance, servicing and operation of 1,876,255 square feet of street improvements within the Development. Maintenance, servicing and operation include the costs of necessary repairs, replacements, scheduled slurry sealing and overlays, care supervision and any and all other items necessary for the proper maintenance and operation of the improvements. The collector streets and the local streets within the District are listed below.

Table 4: Collector and Local Streets Maintained by the District Collector Streets  Freedom Parkway
 Monte Bella Boulevard
 Padova Drive
 Palermo Drive
 Sconberg Parkway
 Tuscany Boulevard
 Williams Road
Local Streets  Arezzo Circle
 Bellagio Way
 Bologna Court
 Bologna Way
 Campania Circle
 Campania Way
 Canelli Court
 Capri Way
 Cassino Circle
 Cassino Way
 Etna Circle
 Genoa Circle
 Genoa Way
 Marsala Circle
 Marsala Way
 Modena Street
 Modena Way
 Napoli Circle
 Palermo Court
 Pavia Place
 Pavia Way
 Piazza Circle
 Piazza Drive
 Pisa Circle
 Rossano Circle
 Rossano Court
 Rossano Way
 Sardinia Drive
 Siena Way
 Spoleto Circle
 Spoleto Street
 Spoleto Way
 Trivoli Way
 Tuscany Circle
 Tuscany Way
 Venice Way
 Verona Court
 Venice Circle
 Verona Way
Slurry sealing and overlay schedules are largely dependent on the extent of use and deterioration of the streets and the composition of the street material used. It has been determined that the slurry sealing of the streets will be required after the first five years and every eight years thereafter. The street overlay has been determined to be required on a twenty year cycle. A reserve has been established for the cost of these major maintenance and repair projects and funded through the annual assessments.

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Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27

9 Public Improvements
On December 7, 2021, City Council accepted the Monte Bella Subdivision Phase 5B public improvements for maintenance and responsibility and accepted the following streets into the City’s street system: Etna Circle, Napoli Circle, Marsala Circle, Palermo Drive and Palermo Court. The subdivision is located north of Sconberg Parkway between Monte Bella Boulevard and Freedom Parkway and consists of 71 residential lots on 11.1 acres of land. The final map for Monte Bella Subdivision Phase 5B is on file in the Office of the Recorder of Monterey County and incorporated herein by reference.

The required public improvements for this subdivision consisted of the following:
 Installation of public utilities, including water, sanitary sewer, gas, electricity, cable, and telephone services accessible to each designated lot;
 All necessary storm drain facilities and stormwater mitigation facilities in accordance with the City’s National Pollution Discharge Elimination System (NPDES Permit);  Fire hydrants;
 Construction of curbs and gutters, sidewalks, curb ramps, pavement, street/traffic signs, pavement markings and street lighting;
 Installation of street monumentation, survey monuments for legal lot lines, street trees and landscaping.

Construction on the required public improvements above began in May 2018 and was satisfactorily completed on November 10, 2021.

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Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27

10 PART III – COST ESTIMATE
Estimated costs for Fiscal Year 2026-27 for the construction, operation, servicing and maintenance of the facilities described in Part III are shown in the following Table 5:

Table footnotes:

Adopted Amended Proposed Forecasted Forecasted Budget Budget Budget Budget Budget FY 2025-26 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Maintenance Landscaping 2
$161,000 $155,445 $149,325 $153,805 $158,419
Tree Pruning $0 $0 $50,000 $51,500 $53,045 Other Equipment Rentals $20,000 $27,159 $20,600 $21,218 $21,855 Other Maintenance, Repairs, and Equipment $20,000 $21,125 $20,600 $21,218 $21,855 In-House Inspection - Street Light Maintenance $66,750 $66,750 $68,753 $70,815 $72,940 Supplies and Contingencies $6,500 $20,555 $6,695 $6,896 $7,103 Engineering Services $0 $13,875 $0 $0 $0
Subtotal Maintenance: $274,250 $304,909 $315,973 $325,452 $335,215 Utilities Landscape Water $30,000 $25,000 $30,900 $31,827 $32,782 Electricity - Street Lighting/Landscape Lighting Controllers $10,000 $15,000 $10,300 $10,609 $10,927 Subtotal Utilities: $40,000 $40,000 $41,200 $42,436 $43,709 Administrative Expenses Agency Administrative Expenses $35,000 $35,000 $36,050 $37,132 $38,245 Professional Fees 3 $20,000 $6,000 $7,674 $7,904 $8,141 Other Charges and Contingencies $41,450 $24,791 $24,791 City's Collection Fee 4 $8,550 $8,550 $8,550 $8,550 $8,550
Subtotal Administrative Expenses: $105,000 $74,341 $77,065 $53,585 $54,936 Capital Improvements 5 $0 $0 $561,000 $561,000 $0 TOTAL EXPENDITURES: $419,250 $419,250 $995,237 $982,473 $433,861 Balance to Levy $583,673 $583,673 $583,673 $583,673 $583,673 Operating Reserve From/(To) ($4,349) ($5,921) $9,639 ($3,033) $26,569 Capital Reserve From/(To) ($231,948) ($228,804) $206,261 $204,562 ($375,555) Debt Service Transfer Out $0 $0 $0 $0 $0 General Fund Contribution to Parks $0 $0 $127,333 $131,153 $135,087 Estimated Interest Earnings $71,874 $70,302 $68,331 $66,118 $64,086 TOTAL REVENUE AND LEVY ADJUSTMENTS: $419,250 $419,250 $995,237 $982,473 $433,861 Total Parcels 868 868 868 868 868
Total Parcels Levied 855 855 855 855 855
Total EBU 921.66 921.66 921.66 921.66 921.66
Levied Rate Per EBU $645.50 $645.50 $645.50 $645.50 $645.50 Maximum Rate Per EBU $1,433.10 $1,433.10 $1,487.55 $1,532.17 $1,578.13 Total Assessments Levied $583,673 $583,673 $583,673 $583,673 $583,673 Assessment Revenue at Maximum Rates $1,312,318 $1,312,318 $1,351,688 $1,392,238 $1,434,005 Capacity for Additional Revenue $728,645 $728,645 $768,014 $808,565 $850,332 Operating Reserve Fund Beginning Operating Reserve Fund Balance 7 $209,625 $209,625 $217,119 $210,736 $216,930 Operating Surplus/(Deficit) $4,349 $5,921 ($9,639) $3,033 ($26,569) Interest (1.5%) $3,144 $1,572 $3,257 $3,161 $3,254 Projected Year Ending Operating Reserve Fund Balance: $217,119 $217,119 $210,736 $216,930 $193,615 Capital Reserve Fund Beginning Capital Reserve Fund Balance $4,581,980 $4,581,980 $4,338,286 $4,197,100 $4,055,494 Capital Reserve Fund Adjustment ($312,423) ($312,423) ($206,261) ($204,562) $375,555 Interest (1.5%) 8
$68,730 $68,730 $65,074 $62,956 $60,832 Projected Year Ending Capital Reserve Fund Balance: $4,338,286 $4,338,286 $4,197,100 $4,055,494 $4,491,881 Projected Year Ending Combined Fund Balance: $4,555,405 $4,555,405 $4,407,836 $4,272,424 $4,685,497 1 DISTRICT STATISTICS ASSESSMENT RATES 6 ASSESSMENT REVENUE

FUND BALANCE INFORMATION
EXPENDITURES 1

REVENUE AND LEVY ADJUSTMENTS
1 Estimated expenditures for FY 26-27 are equal to the greater of the prior years' budgeted amount or projected amount increased by 3% unless noted otherwise.

Estimated expenditures for FY 27-28 and FY 28-29 are equal to the previous year's amount increased by 3% unless noted otherwise. 2 Landscaping and other maintenance costs are based on the Smith & Enright agreement approved by Council on June 25, 2024, and 0.5 FTE Park Maintenance Worker. 3 Professional Fees are based on Harris & Associates district administration contract. 4 The budgeted city collection fee amount for FY 26-27 through FY 28-29 is based on the current number of assessed parcels in the district at a rate of $10 per assessed parcel. 5 Source: City Council Adopted Capital Improvement Plan for FY 22-23 to FY 27-28 for the District. 6 FY 26-27 maximum assessment rates are increased by 3.8%, which is the greater of 3.0% or the increase in CPI for the San Francisco region from April 2025 to April 2026 of 3.8% For FY 27-28 and FY 28-29, maximum assessment rates are increased by 3% from the previous year. 7 In any fiscal year, the operating reserve adjustment is calculated so that the resulting year ending balance in the operating reserve fund equals 50% of projected expenditures for the following fiscal year. 8 FY 26-27 budgeted and projected interest earnings for the capital reserve fund and the operating reserve fund are combined and reported in the capital reserve fund.

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Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27

11 Benefit Zones
Table 6 below presents proposed Fiscal Year 2026-27 expenditures for each Benefit Zone and totals for the District. Parks and Total Street Street Open Space Street Budget Landscaping Lighting Landscaping Maintenance FY 2026-27 Maintenance Landscaping $66,957 $0 $82,368 $0 $149,325
Tree Pruning $50,000 $0 $0 $0 $50,000
Other Equipment Rentals 0 0 0 20,600 20,600
Other Maintenance and Repairs 6,867 6,867 0 6,867 20,600 In-House Inspection - Street Light Maintenance 0 68,753 0 0 68,753 Supplies and Contingencies 4,677 0 2,018 0 6,695
Subtotal Maintenance: $128,501 $75,619 $84,386 $27,467 $315,973 Utilities Landscape Water $21,588 $0 $9,312 $0 $30,900 Electricity - Street Lighting/Landscape Lighting Controllers 4,120 6,180 0 0 10,300 Subtotal Utilities: $25,708 $6,180 $9,312 $0 $41,200
Administrative Expenses
Agency Administration $9,165 $8,554 $9,165 $9,165 $36,050 Professional Fees 1,951 1,821 1,951 1,951 7,674 Other Charges and Contingencies 6,303 5,882 6,303 6,303 24,791 City Collection Fee 2,174 2,029 2,174 2,174 8,550
Subtotal Administrative Expenses: $19,593 $18,286 $19,593 $19,593 $77,065 Capital Improvements $140,250 $140,250 $140,250 $140,250 $561,000 TOTAL EXPENDITURES: $314,052 $240,335 $253,540 $187,310 $995,237 Balance to Levy $157,917 $55,742 $148,137 $221,877 $583,673 Operating Reserve From/(To) 3,858 2,222 2,515 1,045 9,639 Capital Reserve From/(To) 99,358 151,601 (59,227) (50,545) 206,261 Additional City Contribution 0 131,153 127,333 135,087 127,333 Estimated Interest Earnings 52,920 30,770 34,783 14,933 68,331 TOTAL REVENUE AND LEVY ADJUSTMENTS: $314,052 $371,487 $253,540 $322,397 $995,237 Total Parcels 868 868 868 868 868
Total Parcels Levied 855 855 854 855 855
Total EBU 921.66 921.66 860.16 921.66 921.66
Levied Rate Per EBU $171.34 $60.48 $172.22 $241.46 $645.50 Maximum Rate Per EBU $1,487.55 Total Assessments Levied $157,917 $55,742 $148,137 $221,877 $583,673 Assessment Revenue at Maximum Rates $1,351,688 Capacity for Additional Revenue $768,014
Operating Reserve Fund
Beginning Operating Reserve Fund Balance $86,901.21 $50,042 $56,645 $23,530 $217,119 Operating Surplus/(Deficit) (3,858) (2,222) (2,515) (1,045) (9,639) Interest (3%) 828 773 828 828 3,257
Projected Ending Operating Reserve Fund Balance: $83,871 $48,594 $54,958 $23,313 $210,736 Capital Reserve Fund
Beginning Capital Reserve Fund Balance $1,736,390 $999,906 $1,131,837 $470,154 $4,338,286 Capital Reserve Fund Adjustment (99,358) (151,601) 59,227 50,545 (206,261) Interest (3%) 52,092 29,997 33,955 14,105 65,074
Projected Ending Capital Reserve Fund Balance: $1,689,124 $878,302 $1,225,019 $534,804 $4,197,100 Projected Year Ending Combined Fund Balance: $1,772,995 $926,896 $1,279,977 $558,117 $4,407,836

ASSESSMENT RATES ASSESSMENT REVENUE

FUND BALANCE INFORMATION

EXPENDITURES

REVENUE AND LEVY ADJUSTMENTS DISTRICT STATISTICS
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Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27

12 Glossary of Budget Items
A glossary of definitions for the multi-year budget table is provided below.

Expenditures
Maintenance
 Landscaping. Includes all contracted labor, material and equipment required to properly maintain the landscaping improvements within the District. The District also provides routine tree pruning services within the landscaped areas of the boulevards and local streets of the District and within the Park. The improvement costs associated with tree trimming will be assessed to the benefited District parcels and reserved for over an anticipated five year pruning cycle.
 Tree Trimming. Includes all labor, material and equipment required to provide routine tree pruning services within the landscaping improvements within the District.  Street Sweeping. Includes all contracted labor, material and equipment required to properly maintain the streets within the District.
 Other Maintenance and Repairs. Includes unforeseen maintenance and repair costs that are not included in the yearly maintenance contracts. This may include repair of damaged amenities due to vandalism, storms, frost and planned upgrades of the improvements including all renovation costs. Examples of upgrades are replacement of plant materials and/or renovation of irrigation or ornamental lighting systems.
 In-House Inspection - Street Light Maintenance. Includes all repair and replacement costs required to operate the local street lighting, including costs related to City staff who provide services such as work monitoring, project documentation, and inspection.  Supplies and Contingencies. Includes cost of supplies and contingency for any additional unforeseen costs not included above.

Utilities
 Landscape Water. The cost of water required for the operation and maintenance of landscaping facilities.
 Electricity – Street Lighting/ Landscape Lighting Controllers. The cost of electricity required for the operation and maintenance of ornamental lighting, irrigation facilities and street lights.

Administrative Expenses
 Agency Administration. General administration expenses.  Professional Fees. The costs of contracting with professionals to provide services specific to the DRAFT
Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27

13 levy administration and any additional administrative, legal or engineering services specific to the District.
 City Collection Fee. The cost to collect District assessments, including the fee the County charges to collect the assessments on the property tax bills. The charge is $10 per levied parcel.  Capital Improvements. The amount planned for constructing, repairing or replacing capital items in the District based on the City’s FY 2026-27 Adopted CIP Budget Document, which is available online at https://www.cityofsalinas.org/files/sharedassets/city/v/1/finance/ documents/fy-24-25-adopted-cip-budget.pdf, which are summarized in Appendix A of this Report.

Revenue and Levy Adjustments
Balance to Levy. The total assessment amount that is levied in a Benefit Zone or in the District.

Operating Reserve From/(To). The amount transferred from the Operating Reserve Fund to make up for all or part of a funding deficit in the District or the amount of the funding surplus in the District that is transferred to the Operating Reserve Fund.

Capital Reserve From/(To). The amount transferred from the Capital Reserve Fund to pay current year capital expenditures or the amount transferred to the Capital Reserve Fund to pay for future planned capital expenditures.

Additional City Contribution. The amount, if any, that the City contributes to the District to help cover the cost of services in the District.

Estimated Interest Earnings. The combined estimated annual interest to be earned on funds held in the Operating Reserve Fund and the Capital Reserve Fund.

General Fund Contribution for Parks: This item accounts for the general benefit portion of the maintenance costs for parks and the special benefit to parcels outside the District boundary.

The General Fund Contribution for Parks, shown on the District budget pages, accounts for the portion of special benefit conferred to parcels outside the District and within a half mile radius of the parks, as well as the general benefit portion.

District Statistics
Total Parcels. The total number of parcels within the boundaries of the District.

Total Parcels Levied. The total number of parcels that are in a Benefit Zone or in the District.

Total EBU. The total number of equivalent benefit units that are in a Benefit Zone or in the District.

Assessment Rates
Levied Rate per EBU. The rate per equivalent benefit unit levied in a Benefit Zone or in the District.

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Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27

14 Maximum Rate per EBU. The maximum rate per equivalent benefit unit that can be levied in the District.

Assessment Revenue
Total Assessments Levied. The total amount levied on all assessed parcels in a Benefit Zone or in the District.

Assessment Revenue at Maximum Rates. The total amount that can be levied on all assessed parcels in a Benefit Zone or in the District.

Capacity for Additional Revenue. If the total assessments levied are less than assessment revenue at maximum rates, this is the additional amount of revenue can be generated if the assessments are increased up to the maximum rates.

Fund Balance Information
Operating Reserve Fund. Pursuant to Section 22569 of the 1972 Act, the operating reserve fund is utilized to operate the District from the time period of July 1 (beginning of the fiscal year) through December when the County provides the City with the first installment of assessments collected from the property tax bills, thereby eliminating the need for the City to transfer funds from non-district accounts to pay for District charges during the first six (6) months of the fiscal year.

Capital Reserve Fund. The fund used to collect a portion of the total cost of a major improvement over several years, thereby reducing the short-term financial impact to the property owners.

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Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27

15 PART IV – DISTRICT BENEFITS
Authorizing Legislation
The Salinas Municipal Code and the Landscape and Lighting Act (the “Act”) allows the City to establish maintenance districts for the purpose of providing certain public improvements which provide a special benefit to the parcels, including the construction, maintenance, and servicing of street lights, traffic signals, and landscaping facilities. The Salinas Municipal Code expands the types of improvements to be maintained to include “sanitary sewer system facilities, storm drainage facilities and any other works, utility or appliances necessary or convenient for providing any other public service”.

Section 22573 of the Act requires that maintenance assessments be levied according to benefit rather than according to the assessed value of property. This section states:
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.”
— Streets and Highways Code Section 22573
Furthermore, Section 22574 of the Act permits the designation of zones of benefit within any individual assessment district if “by reason of variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvements.” Proposition 218
On November 5, 1996, Proposition 218, the “Right to Vote on Taxes Act,” was approved by California voters on the statewide ballot, which added Article XIIID to the California Constitution requiring that a parcel’s assessment must not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Proposition 218 provides that only special benefits are assessable and the City must separate the general benefits from the special benefits. In addition, Proposition 218 also requires that publicly owned property which benefits from the improvements be assessed, unless there is clear and definite evidence that those properties receive no special benefit. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways.

The amount to be assessed may be apportioned by any formula or method which fairly distributes the amount among all assessable lots or parcels. Additionally, it is required that the City separate the general benefits from the special benefits, because only special benefits may be assessed. The quantification and separation of general benefit from special benefits follows.

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Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27

16 General Benefits
Although the improvements may be visible to passersby or to the public at large, the improvements were installed as a requirement of the development and are designed for the benefit of those properties. Since the District improvements related to street landscaping, street lighting, and street maintenance are entirely located within the District or immediately adjacent to the benefited parcels, it has been determined that there is little or no general benefit to the public at large.

As mentioned above, the City will contribute funds from the general fund to account for park usage by residents living outside the District. This contribution was determined by identifying and separating the special and general benefit portions of the costs to maintain the parks.

Previous public outreach efforts by agencies in California1 have reported that in general, the most-used park is also the closest, typically a 15 minute walk which equates to an approximately half-mile radius. A general benefit from use of the park is received by the public and parcels located beyond the special benefit area. Surveys and studies provide insights into park usage, however specific percentages can vary.

In general, it has been suggested that 20 to 40% of park visitors may travel from greater than a half-mile (15 minute walk or 5 minute car ride). This general benefit must be identified and funded by a revenue source outside of the assessment. As shown in Part III, the City will contribute funds from the general fund to account for park usage by residents living outside the District. This contribution was determined by identifying and separating the special and general benefit portions of the costs to maintain the parks.

The parks were installed as a condition of development and as a part of the specific developments surrounding the parks. It could be inferred that the parcels could not exist had the condition not been met and receive a special benefit from the construction of the park.

The proximity and access to parks serve as an extension of the useable land area for property within the service radius, and the parcels within the service area clearly receive a direct advantage and special benefit from the improvements. The Parks confer a special benefit to the parcels within a half-mile radius, of which those developments are located and can be assessed. There are also parcels outside the District boundary that receive special benefit from the park improvements. The parcels within the District may only be assessed for their share of special benefit from the park improvements. The share of special benefit received by parcels outside the District must be funded by sources other than District assessments, they cannot be assessed to the parcels within the District.

Special Benefits
The method of apportionment (assessment methodology) approved at the time the District was formed is based on the premise that each of the assessed parcels within the District receives benefit from the improvements maintained and financed by annual assessments. Specifically, the assessments are for the maintenance of improvements installed as part of the original improvement. The desirability of properties within the District are enhanced by the presence of street lights and well-maintained streets and landscaping in close proximity to those properties.

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Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27

17 Landscaping. The special benefits associated with the open space and street landscaping improvements are specifically:
 Enhanced desirability of properties through association with the improvements within the area.
 Improved aesthetic appeal of properties providing a positive representation of the area.  Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping.
 Environmental enhancement through improved erosion resistance, dust and debris control and reduced noise and air pollution.
 Increased sense of pride in ownership of property resulting from well-maintained improvements associated with the properties.
 Reduced vandalism and criminal activity resulting from well-maintained surroundings and amenities.
 The special enhancements of the properties that results from the above benefits.

Street Lighting. The special benefits associated with the street lighting improvements are specifically:
 Enhanced deterrence of crime and the aid to police protection.  Increased nighttime safety on roads and streets.
 Improved ability of pedestrians and motorists to see.  Improved ingress and egress to property.
 Reduced vandalism and other criminal act and damage to improvements or property.  Improved traffic circulation and reduced nighttime accidents and personal property loss.  Improved aesthetic appeal of properties providing a positive representation of the area.

Street Maintenance. The special benefits associated with the street maintenance improvements are specifically:
 Improved traffic safety within the community.
 Improved ingress and egress to property.
 Improved protection of property and life that accompanies well maintained streets.  Improved aesthetic appeal of the streets providing a positive representation of the area and desirability of the property.

Parks. The special benefits associated with the park maintenance improvements are specifically:

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Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27

18  Condition of development.
 Proximity and access to Park amenities.

All of the preceding special benefits contribute to a specific enhancement and desirability of each of the assessed parcels within the District.

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Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27

19 PART V – METHOD OF APPORTIONMENT
The Method of Assessment outlines the formula by which property that receives special benefit from the improvements and services provided will be assessed annually. The costs associated with the maintenance and operation of the landscaping and irrigation improvements including the Engineer’s Report, printing and mailing legal assessment notices, County collection fees and legal fees and appurtenances are spread to all developed and undeveloped parcels on a pro-rata area development unit.

Equivalent Benefit Units
The single family detached residential property type has been selected as the basic unit for calculation of special taxes and is defined as one Equivalent Benefit Unit (EBU) as this is common practice in developing special tax methodologies.

Every land-use is converted to EBU's. Government-owned parcels are assigned EBU's based on lot size.

Undeveloped parcels are assigned EBU’s based on lot size unless a final map showing the approved number of residential units for the parcel has been approved, in which Since the average single family lot is .12 acres, the conversion factor for the parcels is 8.33 EBU per acre.

The EBU method is seen as the most appropriate and equitable method of spread of benefit to each parcel from the improvements since it is based on land-use type and parcel size. A methodology has been developed to calculate the EBU's for non-residential parcels. Property within the District is assigned to one of the following categories and assigned EBU’s as follows:

Single Family Residential (SFR). Parcels zoned, or approved for single family detached home residential uses are assigned 1 EBU per dwelling unit, including vacant parcels.

Government Owned (GOV). Parcels owned by a government entity, such as public schools and utilities, area assessed in the same manner as privately owned parcels. In converting government owned properties to EBU's, the EBU Factor used is equal to the residential dwelling unit density 8.33 dwelling units per acre.

Undeveloped/Vacant (GOV). For parcels that are undeveloped or vacant, are assigned EBU’s based on lot size at a rate of 8.33 equivalent benefit units per acre unless a final map with lots approved for single family residential units, in which case the assigned EBU’s are equal to the number of approved single family units shown on the final map.

In the case of APN 153-671-010-000, assessable acreage has been reduced from 13.48 to 7.38, to exclude the open space acreage associated with this parcel. Additionally, this parcel will not be assessed for the maintenance, servicing and operation of District’s park and open space landscaping improvements.

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Engineer’s Report
Monte Bella Maintenance District
City of Salinas
Fiscal Year 2026-27

20 Exempt (EXE). Exempt property is determined to receive no direct and special benefit from the District improvements and is therefore not assessed. Public Parks and Open Space parcels within the District, although not exempt under Article XIIID Section 4, will not be assessed since the landscape benefit contributed by Public Park and Open Space parcels is considered to be equal to or greater than the benefit received by the parcels from other District Improvements.

There total number of EBU for each type of District improvement is shown in Table 7 below.

Table 7: EBUs for each Improvement Type
Improvement Type EBUs
Street Landscaping 922.58
Street Lighting 922.58
Park and Open Space Landscaping 861.08
Street Maintenance 922.58
Parks and Open Spaces Landscaping
For Parks and Open Space Landscaping, the apportionment of General versus Specific Benefit requires further consideration. As discussed in the previous section, it can be inferred that parks and open space landscaping provide benefits as presented in Table 8.