Professional Services Agreement with Kimley-Horn and Associate s Amendment No. 4
June 30, 2026
Version: July 2025
Exhibit A
AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF SALINAS AND KIMLEY-HORN ASSOCIATES
AMENDMENT NO. 4
(Downtown Parking Lots 8 and 12 and Chinatown)
This Amendment No. 4 to the Agreement for Professional Services (the "Amendment") is entered into this 30th day of June 2026, by and between the City of Salinas (the "City") and Kimley -Horn and Associates, a North Carolina Corporation, (the "Contractor"). City and Contractor may be individually referred to herein as a "Party" and collectively the City and Contractor may be referred to as the "Parties."
RECITALS
WHEREAS, the City and Contractor first entered into an Agreement for Professional Services effective July 14, 2025, pursuant to which Contractor agreed to act as and provide certain services to the City for compensation (the "Agreement"); and
WHEREAS, the two services to be performed include: Task 1 development in the Downtown Parking Lots 8 and 12 (Contractor account no. 197479010.1.100 ), and Task 2 developing various properties in Chinatown (Contractor account no. 197479010.1.200); and
WHEREAS, the City and Contractor executed Amendment No. 1 to the Scope of the Agreement December 12, 2025, amending the scope of work to address and resolve unforeseen complications related to the Parking Lots 8 and 12 (“the Properties”), funded additional appraisal updates and additional due diligence in Chinatown, established a new third task Property Demolition (C ontractor account number 197479010.1.300) and increased the total amount of compensation to be paid to the Contractor by the City from $68,000 by an additional $124,8 40, for a new total not to exceed $192,840; and
WHEREAS , the City and Contractor further agreed to Amendment No. 2 dated February 1, 2026, authorizing the Contractor to retain the professional services needed to complete a Phase 1 Environmental Site Assessment (“ESA”) study for the Properties plus additional hours of consultant time, adding $53,335 for a new total of $246,175 and extending the term until May 31, 2026; and
WHEREAS, effective March 31, 2026, the Contractor was advised of budget concerns and stopped work on Tasks 2 and 3 , focusing instead on Task 1 , and shifted all of funds remaining in Tasks 2 and 3 to Task 1, in the amount of $49,897 to pay for these costs without impacting the total cost of the Agreement ; and
WHEREAS, the Phase 1 ESA Study recommends that a Phase 2 ESA study be completed, and on April 21, 2026, the City and Contractor agreed to Amendment 3to the Agreement, adding $40,000 to the $246,175 for a new total of $286,175 ;
Docusign Envelope ID: B395410C-393C-887A-82FC-CBB1A194CD37
Professional Services Agreement with Kimley-Horn and Associate s Amendment No. 4
June 30, 2026
Version: July 2025
WHEREAS, the Phase 2 ESA confirmed the presence of hazardous materials at Tier 2 of the Environmental Screening Levels (ESL) , that requires action be taken to address these concerns, so the Contractor authorized a review by the State and County regulatory agencies, as well as the need to complete the re moval of obsolete title exceptions, and property boundary issues ; and
WHEREAS, the due diligence work including receipt of an updated appraisal for Task 1 Downtown Parking Lots 8 and 12 is nearing completion- waiting for the regulatory direction to take action to remediate the hazardous materials ; and
WHEREAS, the work completed in Task 2 Chinatown has prepared 3-properties (106 East Lake Street, 110 East Lake Street and 14 Soledad Street) for escrow pending acceptance of an offer based on updated appraisals, a purchase and sale agreement, then opening escrow to include ESA’s, and hazardous material testing and if needed and action plan for remediation, then following the close of esc row, demolition and lot consolidations; and
WHEREAS, Exhibit “A” attached to this Amendment summarize the remaining subtasks necessary to complete Task 1 and Task 2 of the original Agreement, and includes a small conting ency as Task 4, to account for minor unforeseen issues that need to be resolved in order to close the se Property sales and acquisitions, causing a need for the City and Contractor to amend the Agreement a 4th time adding Exhibit A to the Tasks to provide for additional services and additional compensation, and extending the term to August 30, 2026 .
NOW, THEREFORE, in mutual consideration of the terms and conditions set forth below, the Parties agree to further amend the Agreement as follows:
TERMS
1. Section 1 of the Agreement is hereby further amended to add the additional scope of services attached hereto as Exhibit A.
2. Section 2 of the Agreement is hereby amended extending the Term from May 31 st, 2026, to August 30 th, 2026.
3. Section 3 of the Agreement is hereby further amended to increase the total amount of compensation to be paid by the City under the Agreement by an additional Seventy-two Thousand, Four-hundred and Three dollars ($72,403) thereby bringing the total amount of compensation to be paid under the Agreement to a total amount not to exceed Three Hundred and Fifty -Eight Thousand, Five hundred and Seventy Eight dollars ( $358,578).
4. All other covenants, terms, and conditions set forth in the Agreement and not amended by this Amendment shall remain in full force and effect as if fully set forth herein.
IN WITNESS WHEREOF, the undersigned, as authorized representatives of the City and Contractor have entered into this Amendment No. 4 as of the date first written above.
Docusign Envelope ID: B395410C-393C-887A-82FC-CBB1A194CD37
Professional Services Agreement with Kimley-Horn and Associate s Amendment No. 4
June 30, 2026
Version: July 2025
CITY OF SALINAS
__________________________
Rene Mendez, City Manager
APPROVED AS TO FORM:
_________________________________
Christopher A. Callihan, City Attorney
Rhonda Combs, Assistant City Attorney
KIMLEY-HORN AND ASSOCIATES
____________________________________
Mark A. Falgout, PE No. 63394
Senior Vice Principal
Exhibit A- Summary of Tasks needed to be completed as Amendment 4 for Tasks 1, 2 and 4 of the original Agreement.
Docusign Envelope ID: B395410C-393C-887A-82FC-CBB1A194CD37 6/15/2026 | 9:55 AM PDT
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Additional Scope of Services
Amendment No. 4
Salinas Amendment 4- v3 06.02.2026
TASK 1 – Updated Scope for Downtown Parking Lots
Complete LDA Article 4
“Article 4” of the LDA describes the “developer’s predisposition requirements for purchase of the property”
1.2 Agree on price- based on appraisal
Review appraisal, render an opinion of its completeness/acceptance by the City from Appraiser, take the City’s Phase 2 final recommendations into consideration, (Section 4.3 below), and provide to the Developer which shall have 30-days to accept or retain a second opinion (prepare another appraisal). Follow the proposed process in Section 4.1
This assumes credit for cleanup will be offered.
2.2 Developer needs to move towards “Acceptance of Title Exceptions” Two letters have been exchanged regarding objections to the title- City and Developer have to narrow this list of concerns (“cure any disapproved exceptions”) to the lowest number of possible “exceptions” and negotiate the rest (RDA for example). Understand if the developer is willing to waive its objection of any remaining title items the City is unable to remove, and proceed with the Agreement, or will developer terminate the Agreement?
Docusign Envelope ID: B395410C-393C-887A-82FC-CBB1A194CD37 .
This discussion may require a meeting between attorneys and the Title Officer.
Boundary issues have to be resolved on both lots and final legal descriptions can then be drafted. Need Legal’s help with a plan for Lot 12. City will request new Title Reports, and present them for final acceptance. Written notice of disapproval is required per the details in this Section 4- or attach legal descriptions to new deeds and record.
Determine cost of remediation and deduct from appraisal. 2 to 3 weeks to hear back from the State, then plan action accordingly. State most likely needs to approve the clean-up plan, inspect and approve it.
TASK 2 Chinatown
Sub Task Detail SubTask hrs
Task 2Chinatown Acquire Properties
106 E Lake Street
Suey Yip (no longer exists) Title Transfer to Suey Sing- agree to front legal costs- this is not City's role - support only
Confim tenancy- issue 30 day notice?
New Appraisal w/new data (title report)
Purchase and Sale Agreement/Open Escrow
Close Escrow- transfer to City
Clean and secure property/no tenant
110 E Lake StreetDiscuss value with Appaiser-
Agree to appraise property
Send Offer to owner (Central Valley)
Come to terms with owners- P&S Agmt
Open Escrow- 30 days/complete appriasal
Close Escrow- transfer to City
Consolidate Bridge Street/Lake Properties
Include in Advanced Planning
14 Soledad StreetFollow-up on May Letter to owners (Bing Kong) Execute Right of Entry Agreement
Update 2025 Appraisal
Send Offer to owner (Central Valley)
Come to terms with owners- P&S Agmt
Open Escrow- 30 days
Close Escrow- transfer to City
Consildate 10-14 Soledad Street
Demo and Secure property
Implement Haz Mat Remediation Plan
Work with Advance Planning - future use
Docusign Envelope ID: B395410C-393C-887A-82FC-CBB1A194CD37 .
Docusign Envelope ID: B395410C-393C-887A-82FC-CBB1A194CD37 .
106 E Lake Street
Agree to escrow conditions for 106 E Lake with the Suey Sing to include advance for attorney fees to remove Suey Yip from title and transfer it to Suey Sing.
Attempt to get Suey Sing Board approval of a draft Purchase and Sale Agreement.
Assist with the Suey Sing ownership/transfer of title if necessary. Determine tenancy- is the property subject to a lease/tenant? (one-two months?) Appraise the property (one month)
Take the Purchase and Sale Agreement with the Suey Sing to City Council for approval. (one month)
Open escrow, order PTR
Analyze data from requested reports, identify any title issues. Execute Right of Entry Agreement.
110 E Lake Street
Send Conditional Offer based on value of appraisal at 106 E Lake Street (value per square foot) Take the Purchase and Sale Agreement to City Council for approval. (one month) Open escrow, order PTR
Analyze data from requested reports, identify any title issues, order Phase 2 ESA (most likely). (reports will take two months)
Execute Right of Entry Agreement, perform additional testing of site Consolidate Lots on Bridge Street/Lake Street
14 Soledad
Follow-up on the letter sent to Bing Kong. Revised appraisal March 20, 2026 to be used for price estimate- agree to price.
P&S Agreement taken to City Council Open
escrow, order PTR
Analyze data from requested reports, identify any title issues,
Execute Right of Entry Agreement, perform additional testing of site (6 weeks to get report) Demo and Secure property
Consolidate 10-14 Soledad Street/Coordinate with Advanced Planning TASK 4 – Maintain Property Acquisition List and Update as Necessary Assure City compliance with Government Code 65402. Follow-up on drafted Resolution fo the Docusign Envelope ID: B395410C-393C-887A-82FC-CBB1A194CD37 .
Planning Commission (02.18.2026)
Cost Estimate and Schedule
The City exhausted the current amount of budgeted funds in mid-May. The estimated amount of time needed to complete the amended tasks adds 167 hours to complete Tasks 1, 2 and 3, at 10-15 hours per week, between June 1 and August 30, 2026.
We appreciate the opportunity to provide these services! If you have any questions or concerns, please don’t hesitate to contact me at [email protected] (831) 316-1428, or Mark Falgout mark.falgout@kimley- horn.com (925) 965-7701
Sincerely,
KIMLEY-HORN AND ASSOCIATES, INC.
By: Mark Falgout, PE Don Reynolds. MPA
Sr. Vice President Sr. Project Manager
P.E. No. 63394
Docusign Envelope ID: B395410C-393C-887A-82FC-CBB1A194CD37