A G E N D A
CITY OF SEASIDE REGULAR MEETING
CITY COUNCIL/SUCCESSOR 440 HARCOURT AVE (COUNCIL CHAMBER) AGENCY TO THE Thursday, June 20, 2024
REDEVELOPMENT AGENCY 5:00 PM
__________________________________________________________________________________ NOTICE: The City Council will hold its public meetings in person, with a virtual option for public participation based on availability. The City of Seaside utilizes Zoom tele-conferencing technology for virtual public participation; however, we make no representation or warranty of any kind, regarding the adequacy, reliability, or availability of the use of this platform in this manner. Participation by members of public through this means is at their own risk. ___________________________________________________________________________________ _________________________________________________________________________________
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Packet Page 1
City Council REGULAR Meeting June 20, 2024 5:00 PM Agenda Page 2
1. CALL TO ORDER
2. ROLL CALL – ESTABLISHMENT OF QUORUM
Ian N. Oglesby
David R. Pacheco
Alexis Garcia-Arrazola
Rita Burks
Alex Miller
Mayor/Chair
Mayor Pro Tem/Vice Chair
Council/Agency Member
Council/Agency Member
Council/Agency Member
3. INVOCATION AND PLEDGE OF ALLEGIANCE
4. REVIEW OF AGENDA
If there are any items that arose after the 72-hour posting deadline, this is the point in the meeting where a vote may be taken to add the item to the agenda. (A 2/3- majority vote is required).
5. PUBLIC COMMENT
Members of the public wishing to address the City Council on matters within the jurisdiction of the City of Seaside, but not on this agenda, may do so during the Public Comment period for up to three (3) minutes. Public Comments for "Presentations" on this agenda are also taken at this time; comments on specific agenda items are heard under that item. For the public record, please state your name.
6. PUBLIC AGENCY COMMUNICATIONS
This is a time specifically set aside for representatives of public agencies to make brief comments of general interest to the City Council and the community.
A. SEASIDE CITY NEWS BROADCAST OF UPCOMING CITYWIDE EVENTS AND COMMUNITY ANNOUNCEMENTS BETWEEN JUNE 22 THROUGH JULY 19 7. PRESENTATIONS
A. BROADWAY UPDATE (JOSE BAZUA, ECONOMIC DEVELOPMENT
DIRECTOR)
8. CONSENT AGENDA
A. APPROVE MINUTES FROM JUNE 6, 2024
RECOMMENDATION: Approve minutes from June 6, 2024 as presented in the Packet Page 2
City Council REGULAR Meeting June 20, 2024 5:00 PM Agenda Page 3 agenda packet.
B. APPROVE A PROCLAMATION DECLARING THE WEEK OF JUNE 17TH23RD, 2024 AS POLLINATOR WEEK RECOMMENDATION: Approve a proclamation declaring the week of June 17-23, 2024 as Pollinator Week in the City of Seaside.
C. APPROVE A PROCLAMATION DESIGNATING JULY 2024 AS PARKS AND
RECREATION MONTH
RECOMMENDATION: Proclaim July 2024 as Parks and Recreation Month in the City of Seaside.
D. APPROVE MAYOR'S YOUTH FUND CONTRIBUTION REQUEST FROM
SEASIDE POLICE ACTIVITIES LEAGUE
RECOMMENDATION: Approve a request from Seaside Police Activities League (P.A.L.) for a donation of $3,000.00 from the Mayor’s Youth Fund to help cover the costs of new equipment, basketball uniforms, and referees.
E. APPROVE A MAYOR'S YOUTH FUND CONTRIBUTION REQUEST FROM THE
BOYS & GIRLS CLUBS OF MONTEREY COUNTY
RECOMMENDATION: Approve a request from Boys & Girls Clubs of Monterey County for a donation of $3,000.00 from the Mayor’s Youth Fund to help cover the costs of supplies required for their eight-week youth Summer Academy.
F. ADOPT A RESOLUTION AUTHORIZING AMENDMENT NO. 2 TO THE
PROFESSIONAL SERVICE AGREEMENT WITH WHITSON ENGINEERS FOR
FINAL DESIGN SERVICES AND DESIGN SUPPORT DURING
CONSTRUCTION FOR THE POLICE DEPARTMENT PARKING LOT
IMPROVEMENTS PROJECT FOR AN AMOUNT NOT TO EXCEED $22,500.00 RECOMMENDATION: Adopt a resolution authorizing the City Manager to execute Amendment No. 2 to the professional services agreement with Whitson Engineers for final design services and design support during construction services for the Police Department Project for an amount not to exceed $22,500.00.
G. ADOPT A RESOLUTION CONFIRMING SOURCES OF FUTURE WATER
SUPPLY FOR THE KB BAKEWELL SEASIDE VENTURE II RESIDENTIAL
AND COMMERCIAL DEVELOPMENT LOCATED WITHIN THE CAMPUS
TOWN SPECIFIC PLANNING AREA
RECOMMENDATION: Adopt a Resolution confirming sources of future water supply for the KB Bakewell Seaside Venture II residential and commecrical development located within the Campus Town specific planning area.
H. APPROVE REQUEST TO MODIFY ITEM 7 OF THE SCHEDULE OF
PERFORMANCE EXTENDING THE DATE TO CLOSE A HOTEL
CONSTRUCTION LOAN FOR THE GRAND HYATT HOTEL TO JANUARY 31, 2025. THIS ITEM IS EXEMPT FROM CEQA PURSUANT TO 15061(C)(3).
Packet Page 3
City Council REGULAR Meeting June 20, 2024 5:00 PM Agenda Page 4 RECOMMENDATION: Consider request to extend the date to close a Hotel Construction loan to January 31, 2025
I. ADOPT A RESOLUTION AUTHORIZING A PROFESSIONAL SERVICE
AGREEMENT WITH WALLACE GROUP FOR AN AMOUNT NOT TO EXCEED $193,734.00 FOR CONSTRUCTION MANAGEMENT AND INSPECTION OF
THE GRAND HYATT SEASIDE RESORT HOTEL CONSTRUCTION TO BE
REIMBURSED BY THE DEVELOPER
RECOMMENDATION: Adopt a resolution authorizing a professional services agreement with Wallace Group for an amount not to exceed $193,734.00 for construction management and inspection of the Grand Hyatt Seaside Resort Hotel to be reimbursed by the developer.
9. PUBLIC HEARING
A. ZONING MAP AMENDMENT TO CHANGE THE ZONING OF 1020 AUTO CENTER PARKWAY (APN: 011-523-021) FROM AUTOMOTIVE REGIONAL COMMERCIAL (CA) TO REGIONAL COMMERCIAL (CRG). THE PROJECT IS CATEGORICALLY EXEMPT (CLASS 32) FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO SECTION 15332
OF THE CEQA GUIDELINES (SECOND READING)
RECOMMENDATION: Approve ZMA-24-01 to change the Zoning of 1020 Auto Center Parkway from Automotive Regional Commercial (CA) to Regional Commercial (CRG)
10. BUSINESS ITEMS
A. CONSIDER THE ADOPTION OF A RESOLUTION APPROVING A
DEVELOPMENT/OPERATING AGREEMENT FOR CCSEA, LLC., DBA
CANNACRUZ, A CANNABIS DISPENSARY AT 680 BROADWAY AVENUE RECOMMENDATION: Consider adoption of a Resolution approving a Development/Operating Agreement between the City of Seaside and CCSEA, LLC., DBA CANNACRUZ, governing the operations and community benefit requirements for an Adult Use and Medical Cannabis Dispensary located at 680 Broadway Avenue.
B. ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
A PROFESSIONAL SERVICE AGREEMENT WITH KIMLEY-HORN AND
ASSOCIATES, INC. FOR DEVELOPER PROJECT MANAGEMENT AND PLAN
REVIEW SERVICES FOR THE CAMPUS TOWN PROJECT IN AN AMOUNT NOT TO EXCEED $230,000.00 TO BE REIMBURSED BY THE DEVELOPER RECOMMENDATION: Adopt a resolution authorizing the City Manager to execute a professional services agreement with Kimley-Horn and Associates, Inc. for Developer Project Management and Plan Review Services for the Campus Town Project for an amount not to exceed $230,000.00 to be reimbursed by the Developer.
Packet Page 4
City Council REGULAR Meeting June 20, 2024 5:00 PM Agenda Page 5 C. ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
A PROFESSIONAL SERVICE AGREEMENT WITH KIMLEY-HORN AND
ASSOCIATES, INC. FOR CITY PROJECT MANAGEMENT FOR THE CAMPUS TOWN PROJECT FOR AN AMOUNT NOT TO EXCEED $90,000.00 TO BE
REIMBURSED BY THE FORA DEMOLITION BOND
RECOMMENDATION: Adopt a resolution authorizing the City Manager to execute a professional services agreement with Kimley-Horn and Associates, Inc. for City Project Management for the Campus Town Project for an amount not to exceed $90,000.00 to be reimbursed by the FORA Demolition Bond.
D. ADOPT A RESOLUTION APPROVING THE FISCAL YEAR 2024-25 GENERAL
AND OTHER FUNDS OPERATING BUDGET, CAPITAL OUTLAY BUDGET,
CAPITAL IMPROVEMENT BUDGET, FEE SCHEDULE, INVESTMENT POLICY,
POSITION CONTROL LIST, SALARY SCHEDULE, THE APPROPRIATIONS
LIMIT, THE CAPITAL IMPROVEMENT PLAN, AND SET RESERVE AMOUNTS RECOMMENDATION: Adopt a resolution approving the Fiscal Year 2024-2025 budget; or provide direction to staff for further revisions to the budget prior to adoption.
11. COUNCIL MEMBER REQUESTS
A. NEW COUNCIL MEMBER REQUESTS
B. FOLLOW UP ON PREVIOUS REQUESTS
12. CITY ATTORNEY, CITY MANAGER, CITY COUNCIL AND MAYOR
COMMENTS AND REPORTS ON COMMITTEE ASSIGNMENTS
This is a time specifically set aside for members of the City Council, the City Manager and City Attorney to make brief comments of general interest to the community and report on committee assignments.
13. CLOSED SESSION
Pursuant to Government Code Section 54956 et seq., the City Council and Successor Agency to Redevelopment Agency may adjourn to a Closed Session to consider specific matters dealing with litigation, certain personnel matters, property negotiations or to confer with the City Attorney. Public comments on these items are taken after being read by the City Attorney. For the public record, please state your name.
A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE 54956.8
Packet Page 5
City Council REGULAR Meeting June 20, 2024 5:00 PM Agenda Page 6 RECOMMENDATION: Property: The Property Commonly Referred to As Campus Town (Property bounded by Highway 1/1st Avenue, 7th Avenue, Lightfighter/Colonel Durham Street, and Gigling)
Agency Negotiators: City Manager, et. al
Negotiating Parties: KBB Seaside Venture, et. al. and City of Seaside Under Negotiation: Price, terms of payment or both
B. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE 54956.8
RECOMMENDATION: Property: 1 McClure Way, commonly known as the Blackhorse and Bayonet Golf Course and Grand Hyatt Hotel site Agency Negotiators: City Manager, et. al
Negotiating Parties: Seaside Acquisition Group et. al. and City of Seaside Under Negotiation: Price, terms of payment or both
C. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE 54956.8
RECOMMENDATION: Property: A portion of 1271 Canyon Del Rey Boulevard, Seaside California
Agency Negotiators: City Manager, et. al
Negotiating Parties: Palenke Arts by and through Juan Sanchez and City of Seaside Under Negotiation: Price, terms of payment or both
D. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE 54956.9 (D)(2)
(TWO MATTERS OF POTENTIAL LITIGATION)
Two Matters of Potential Litigation
14. ADJOURNMENT
Next Regularly Scheduled Meeting:
July 18, 2024
5:00 p.m.
The City of Seaside is committed to providing accessible facilities and accommodating people with disabilities in all of its services programs and activities. If special considerations are needed by any person to fully participate in this meeting, contact the City Clerk at 899-6707 no fewer than two business days prior to the meeting to allow reasonable arrangements. Agendas are posted at:
http://www.ci.seaside.ca.us/129/City-Council-Committee-Agendas Agenda-related writings or documents provided during public meetings are available for public inspection during the meeting or from the office of the City Clerk. This agenda is posted in compliance with California Governor Newsom's Executive Orders N-29-20 and N-33-20.
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DRAFT MINUTES
CITY OF SEASIDE REGULAR MEETING
CITY COUNCIL/ SUCCESSOR 440 HARCOURT AVE
AGENCY TO THE Thursday, June 6, 2024
REDEVELOPMENT AGENCY 5:00 PM
1. CALL TO ORDER
Mayor/Chair Oglesby called the meeting to order at 5:00 p.m.
2. ROLL CALL – ESTABLISHMENT OF QUORUM
PRESENT: Burks, Garcia-Arrazola, Miller, Oglesby, Pacheco ABSENT: None
3. INVOCATION AND PLEDGE OF ALLEGIANCE
A moment of silence was held. The pledge was led by Council/Agency Member Burks.
4. REVIEW OF AGENDA
No changes.
5. PUBLIC COMMENT
Barak Laub, Bobby Maxwell, Peter Kaiser, Ann Marie Pagan, Lynda Cunningham, Miriam Smith, no name given
6. PUBLIC AGENCY COMMUNICATIONS
A. SEASIDE CITY NEWS BROADCAST OF UPCOMING CITYWIDE EVENTS AND COMMUNITY ANNOUNCEMENTS BETWEEN JUNE 6 THROUGH JUNE 21 Citywide Events and Community Announcements Video reviewed the following upcoming events:
• This June, the Recreation Department is putting on a STEAM Summer Camp at Oldemeyer Center for all you budding scientists, Engineers, and Artists! The camp will run from 1-6pm the week of June 6th through the 14th, and again the week of the 17th and the 21st. The fee for residents is $41.75, and $52.25 for non-residents. To register, visit bit.ly/SeasideRecTrac. • The City of Seaside and Shea Homes are pleased to announce that The Enclave at Cypress Grove community in Seaside was awarded the Community of the Year award in February in Las Vegas at the National Association of Homebuilders Nationals Awards. This award was granted to The Enclave out of thousands of detached residential communities across North America. With over 1200 people in attendance at the show and awards ceremony, 5 communities were selected as finalists, and The Enclave was granted the awards. This is NAHB’s largest and most prestigious awards competition and Packet Page 7
Thursday, June 6, 2024 City Council REGULAR Meeting Page 2 the outstanding achievement for The City of Seaside, Shea Homes, and the redevelopment of the Bayonet and Black Horse Golf Course community. • This Saturday, June 8th, Monterey Bay FC is celebrating Pride night, while hosting West Coast rival, Sacramento Republic in a huge battle for conference supremacy. The Union will be looking to close out a long home stand with a victory, and a much needed 3 points in the books. No better time to don the Chrisp and Kelp and do your part to help lead MBFC to victory! Kick-off is at 7pm, so head over to On Saturday, June 15th, starting at 1pm, the Monterey County Black Caucus presents the 5th annual Juneteenth Monterey County event at Laguna Grande Park. This is a chance for the community to celebrate the longest-running African-American holiday with a fun and illuminating day out. Come out for the chance to meet local black businesses, food vendors, speakers, and take part in activities of all sorts MontereyBayFC.com for your tickets!
• Residents of lower socio-economic status can pick up Free Boxes of Produce Every Thursday, from 3-7pm at Laguna Grande Park during the Seaside Farmer’s Market. The boxes are handed out on a first come, first served basis, and quantity is limited. Be sure to bring proof of status in order to collect. • Congratulation to the Seaside Fire Department, in collaboration with neighboring Fire Departments, for joining forces to raise funds for the Muscular Dystrophy Association with over $7,000 – special thanks to Seaside Fire’s own Liliana Garcia, that spearheaded the event.
• On Saturday, June 15th, starting at 1pm, the Monterey County Black Caucus presents the 5th annual Juneteenth Monterey County event at Laguna Grande Park.
• CalFresh EBT and SUNBucks card holders…Now is the time to DOUBLE your purchasing power at local produce vendors. There are two ways to take advantage of this exciting deal: Visit a participating Farmer’s Market—Every time you spend 30 dollars or more, you will get an EXTRA 30 dollars worth of fruits and vegetables. Stop by any Monterey County La Princesa Market and receive up to 15 dollars a day with a 50% discount on your purchase of California-grown produce. For more information, and to see where to take advantage of these fantastic deals, text “FOOD” to (831) 215-3342, or visit www.calfresh.org.
• Thursday, June 20th marks the one-year anniversary of the Seaside Certified Farmers’ Market! From 3-7pm, join Everyone’s Harvest, and the City of Seaside in supporting local farmers and artisans. This is a family event filled with Local Vendors, Festive Foods, Live Performances, Kids’ Activities, and Nutritional Tastings of all sorts! Visit EveryonesHarvest.org for more details, and we’ll see you there!
• The City of Seaside is seeking proposals from muralists to submit a vibrant design welcoming visitors to Oldemeyer Center! This piece will be placed on a 9 foot high by 15 foot wide interior wall, and will serve as a constant reminder of the amazing work done by the Parks and Recreation Department. Visit the Bid Posting page on the City’s website for more information!
7. PRESENTATIONS
Packet Page 8
Thursday, June 6, 2024 City Council REGULAR Meeting Page 3 A. RECEIVE PRESENTATION FROM THE TRANSPORTATION AGENCY FOR
MONTEREY COUNTY (TAMC) ON THE ACTIVE TRANSPORTATION
PROGRAM GRANT APPLICATION (MICHAEL ZELLER, DIRECTOR OF
PROGRAMMING AND PROJECT DELIVERY)
Mr. Zeller provided the presentation and reviewed the project recommended the Mayor sign a letter of support on behalf of the City supporting the application by TAMC to the Active Transportation Program for the Fort Ord Trail Regional Trail & Greenway project (FORTAG) in conjunction with the north Fremont gap project.
B. 4TH OF JULY OPERATIONS PLAN (POLICE COMMANDER MATT DOZA) Commander Doza provided a presentation and reviewed the operations plan for 4 th of July that will be executed in collaboration with the fire department. The zero tolerance policy will be enforced, and an increase in public education on social media campaigns, PSA videos (in English & Spanish), and letters to prior violators.
The increased enforcement includes: Two dedicated firework enforcement teams, supplemented by private security company, Zero-Tolerance Enforcement, Admin & Criminal Citations, Joint Fire & Police Drone Team, Fire Department will have an Extra, Engine Company on duty, Enforcing new firework curfew ordinance., Education, and enforcement approach, No parking on General Jim Moore, Between Hilby Ave. and Coe Ave., Flock Safety – Firework Detection, City Attorney’s Office is working with the California Tax Franchise Board.
8. CONSENT AGENDA
Items pulled: 8D and 8P
On motion by Council/Agency Miller and second by Mayor Pro Tem/Vice Chair Pacheco and carried by the following vote, the City Council/Successor Agency moved to approve the consent agenda.
RESULT: 5-0-0-0
AYES: Burks, Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
ABSTAIN: None
ABSENT: None
A. APPROVE MINUTES FROM MAY 16, 2024
ACTION: APPROVED
B. APPROVE AND FILE CITY CHECKS
ACTION: APPROVED
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Thursday, June 6, 2024 City Council REGULAR Meeting Page 4 C. APPROVE AND FILE SUCCESSOR AGENCY CHECKS
ACTION: APPROVED
D. APPROVE A PROCLAMATION RECOGNIZING JUNE 2024 AS PRIDE
MONTH IN THE CITY OF SEASIDE
PUBLIC COMMENT: Peter Kaiser, Bobby Maxwell, Lynda Cunningham On motion by Council/Agency Miller and second by Mayor Pro Tem/Vice Chair Pacheco and carried by the following vote, the City Council/Successor Agency moved to approve a proclamation recognizing June 2024 as Pride Month.
RESULT: 5-0-0-0
AYES: Burks, Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
ABSTAIN: None
ABSENT: None
ACTION: APPROVED
E. APPROVE LETTER OF SUPPORT FOR AN ACTIVE TRANSPORTATION
PROGRAM GRANT APPLICATION FOR THE FORT ORD RECREATION
TRAIL AND GREENWAY (FORTAG) PROJECT
ACTION: APPROVED
F. APPROVE A FEE WAIVER FROM HINDU TEMPLE OF MONTEREY
PENINSULA FOR THE USE OF THE LAGUNA GRANDE HALL AND KITCHEN FOR THEIR COMMUNITY DINNER NIGHT EVENT ON NOVEMBER 16,
2024
ACTION: APPROVED
G. APPROVE A FEE WAIVER REQUEST FROM NARCOTICS ANONYMOUS FOR
THE USE OF LAGUNA GRANDE HALL FOR A WOMEN'S BRUNCH ON
MARCH 01, 2025
ACTION: APPROVED
H. APPROVE A REQUEST FROM BLACK LEADERS AND ALLIES
COLLABORATIVE FOR SPONSORSHIP IN THE AMOUNT OF TWO
THOUSAND ($2,000.00), AND USE THE CITY LOGO ON PROMOTIONAL Packet Page 10
Thursday, June 6, 2024 City Council REGULAR Meeting Page 5
MATERIALS FOR THE MONTEREY COUNTY RACE RELATIONS SUMMIT MEETING ON JULY 12, 2024, TO BE HELD AT EMBASSY SUITES HOTEL
IN SEASIDE
ACTION: APPROVED
I. ADOPT A RESOLUTION APPROVING A PROCLAMATION RECOGNIZING JUNE 19, 2024 AS JUNETEENTH INDEPENDENCE DAY AND TO RAISE THE JUNETEENTH FLAG FROM JUNE 15 THROUGH JUNE 21, 2024
ACTION: ADOPTED RESO
J. ADOPT A RESOLUTION APPROVING AN ON-CALL CONSULTANT LIST FOR
ENVIRONMENTAL SERVICES
ACTION: ADOPTED RESO
K. ADOPT A RESOLUTION AUTHORIZING THE ACTING CITY MANAGER TO
EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH WALLACE
GROUP FOR CONSTRUCTION MANAGEMENT AND INSPECTION
SERVICES FOR THE 2023 PAVEMENT REHABILITATION PROJECT FOR AN AMOUNT NOT TO EXCEED $184,261.00.
ACTION: ADOPTED RESO
L. ADOPT A RESOLUTION AUTHORIZING THE SUBMISSION OF THE ACTIVE TRANSPORTATION PROGRAM (ATP) CYCLE 7 GRANT APPLICATION AND
THE SIGNING OF A LETTER OF SUPPORT FOR THE SAN PABLO
PEDESTRIAN BRIDGE DEMOLITION AND RECONSTRUCTION PROJECT ACTION: ADOPTED RESO
M. ADOPT A RESOLUTION AUTHORIZING THE CLOSURE OF DEL MONTE
AVENUE TO THROUGH TRAFFIC FROM TIOGA AVENUE TO THE
BEGINNING OF THE GRANITE ROCK BUILDING FOR THE CLASSIC
PORSCHE EVENT ON AUGUST 12, 2024
ACTION: ADOPTED RESO
N. ADOPT A RESOLUTION AUTHORIZING AN AMENDMENT TO THE
PROFESSIONAL SERVICES CONTRACT WITH SCHAAF & WHEELER FOR
ADDITIONAL INVESTIGATION, SURVEYING, AND HYDROLOGIC AND HYDRAULIC MODELING FOR PREPARATION OF A STUDY OF THE 90-
INCH STORM DRAIN OUTFALL FOR AN AMOUNT NOT TO EXCEED
Packet Page 11
Thursday, June 6, 2024 City Council REGULAR Meeting Page 6 $37,182.00
ACTION: ADOPTED RESO
O. ADOPT A RESOLUTION APPROVING THE REMOTE MEETING
PARTICIPATION POLICY AND REINSTATING THE ACCEPTANCE OF
PUBLIC COMMENT VIA VIRTUAL TELE-CONFERNCING PLATFORM
(CURRENTLY ZOOM)
ACTION: ADOPTED RESO
P. REVIEW AND TAKE ACTION ON TRAFFIC ADVISORY COMMITTEE
RECOMMENDATIONS TO APPROVE THE INSTALLATION OF GREEN CURB AT 1121 ELM AVENUE AND APPROVE THE ADDITION OF A SECOND DRIVEWAY APPROACH AT 1486 SANTA CLARA AVENUE
PUBLIC COMMENT: Ann Marie Pagan, Richard Dansby
On motion by Mayor Pro Tem/Vice Chair Pacheco and second by Council/Agency Member Miller and carried by the following vote, the City Council/Successor Agency moved to approve the installation of green curb at 1121 Elm Avenue, and approve the addition of a second driveway approach at 1486 Santa Clara Avenue.
RESULT: 5-0-0-0
AYES: Burks, Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
ABSTAIN: None
ABSENT: None
ACTION: APPROVED
Q. ADOPT A RESOLUTION AUTHORIZING THE SUBMITTAL OF AN
APPLICATION FOR THE PROPOSITION 47 GRANT PROGRAM: SAFE
NEIGHBORHOODS AND SCHOOLS ACT THROUGH THE BOARD OF STATE
AND COMMUNITY CORRECTIONS
ACTION: ADOPTED RESO
9. BUSINESS ITEMS
A. CONFIRM SETTLEMENT AGREEMENT WITH PETROVICH DEVELOPMENT
AND AUTHORIZE THE ACTING FINANCE DIRECTOR TO REMIT
$850,000.00 FROM THE SPECIAL RESERVES FUND
City Attorney Sheri Damon provided a presentation and reviewed the settlement Packet Page 12
Thursday, June 6, 2024 City Council REGULAR Meeting Page 7 agreement and the request to allow the Acting Finance Director to make the payment for the settlement from the special reserves (“rainy day”) fund.
PUBLIC COMMENT: Ann Marie Pagan, Bobby Maxwell, Miriam Smith, Joe Cubbage, Karla Lobo, Dianne Nielson
On motion by Mayor Pro Tem/Vice Chair Pacheco and second by Council/Agency Member Burks and carried by the following vote, the City Council/Successor Agency moved to confirm the settlement agreement and allow for the payment of the settlement from the special reserves fund.
RESULT: 4-1-0-0
AYES: Burks, Garcia-Arrazola, Oglesby, Pacheco
NOES: Miller
ABSTAIN: None
ABSENT: None
ACTION: ADOPTED RESO
B. ADOPT A RESOLUTION APPROVING THE PLANS AND SPECIFICATIONS FOR THE 2023 PAVEMENT REHABILITATION PROJECT AND AWARDING
A CONSTRUCTION CONTRACT TO COASTAL PAVING AND EXCAVATING INC. FOR AN AMOUNT NOT TO EXCEED $2,341,712.40 AND TOTAL
PROJECT CONSTRUCTION COST INCLUDING CONTINGENCY OF
$2,575,883.64
Nisha Patel, Public Works Director/City Engineer provided a presentation that reviewed the project which includes the streets in varying sections that include Flores Pl, Flores St, Grandview St, Harding St, Lincoln St, and Waring St. The scope of work includes Base repairs and pavement overlay on 13 roadway segments (on 8 streets), 43 curb ramps, Sanitary sewer mainline repair on Flores Street, Storm drain headwall repair on Harding Street, Utility and roadway sign relocations, Preservation of benchmarks and monuments, and Pavement striping. 6 bids were received and the schedule after the construction contract is awarded will include the pre-construction meeting on July 17, a construction notice to proceed on August 12 and construction completion (weather permitting) on January 13, 2025.
PUBLIC COMMENT: Lynda Cunningham, Karla Lobo, Joe Cubbage On motion by Mayor Pro Tem/Vice Chair Pacheco and second by Council/Agency Member Garcia-Arrazola and carried by the following vote, the City Council/Successor Agency moved to approve approving the plans and specifications for the 2023 Pavement Rehabilitation Project; waiving minor bid irregularities, awarding a construction contract to Coastal Paving and Excavating Inc. for an amount not to exceed $2,341,712.40; establishing a 10% construction contingency for a total project construction amount not to exceed $2,575,883.64; authorizing the City Manager to execute the construction contract and approve Packet Page 13
Thursday, June 6, 2024 City Council REGULAR Meeting Page 8 any amendments, extensions, and change orders until completion of the project in accordance with the plans and specifications up to the total project construction amount.
RESULT: 5-0-0-0
AYES: Burks, Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
ABSTAIN: None
ABSENT: None
ACTION: ADOPTED RESO
C. ADOPT A RESOLUTION APPROVING THE CONTRACTUAL 2.7%
INCREASE IN THE COLLECTION OF SOLID WASTE, RECYCLING, AND ORGANICS RATE EFFECTIVE JULY 1, 2024, ACCORDING TO THE INDEXBASED RATE ADJUSTMENT CALCULATION OF THE FRANCHISE AGREEMENT WITH GREENWASTE RECOVERY, INC.
Nisha Patel, Public Works Director/City Engineer provided a presentation that reviewed the 2.7% rate increase that would be increase rates for residential curbside 32 gallon from $25.97 (FY 23-24) to $26.67 (FY 24-25), and residential curbside 64 gallon from $32.47 (FY 23-24) to $33.34 (FY 24-25).
PUBLIC COMMENT: Bobby Maxwell, Ann Marie Pagan
On motion by Council/Agency Member Burks and second by Mayor Pro Tem/Vice Chair Pacheco and carried by the following vote, the City Council/Successor Agency moved to approve the contractual 2.7% increase in the collection of solid waste, recycling, and organics rate effective July 1, 2024.
RESULT: 5-0-0-0
AYES: Burks, Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
ABSTAIN: None
ABSENT: None
ACTION: ADOPTED RESO
D. ADOPT A RESOLUTION AUTHORIZING AN AMENDMENT TO THE
MEMORANDUM OF UNDERSTANDING BETWEEN THE REGEN MONTEREY
AND ITS MEMBER AGENCIES REGARDING COSTS OF IMPLEMENTING
ORGANIC WASTE RECYCLING LAWS
Nisha Patel, Public Works Director/City Engineer provided a presentation reviewing the MOU and the activities and cost for fiscal year 2024-2025.
On motion by Mayor Pro Tem/Vice Chair Pacheco and second by Council/Agency Member Garcia-Arrazola and carried by the following vote, the City Packet Page 14
Thursday, June 6, 2024 City Council REGULAR Meeting Page 9 Council/Successor Agency moved to authorize an amendment to the MOU between the Regen Monterey and its member agencies regarding costs of implementing organic waste recycling laws.
PUBLIC COMMENT: None
RESULT: 5-0-0-0
AYES: Burks, Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
ABSTAIN: None
ABSENT: None
ACTION: ADOPTED RESO
10. PUBLIC HEARING
A. APPROVE A ZONING MAP AMENDMENT TO CHANGE THE ZONING OF 1020 AUTO CENTER PARKWAY (APN: 011-523-021) FROM AUTOMOTIVE REGIONAL COMMERCIAL (CA) TO REGIONAL COMMERCIAL (CRG). THE PROJECT IS CATEGORICALLY EXEMPT (CLASS 32) FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO SECTION 15332 OF THE CEQA GUIDELINES (FIRST READING)
Andy Myrick, Economic Development and Community Planning Manager provided a presentation reviewing the request to change the zoning of 1020 Auto Center Parkway. The Planning Commission heard the item on May 29 and recommended the City Council approve the zoning map amendment.
PUBLIC COMMENT: None
On motion by Council/Agency Member Garcia-Arrazola, and second by Mayor Pro Tem/Vice Chair Pacheco and carried by the following roll call vote, the City Council/Successor Agency moved to approve the zoning map amendment.
RESULT: 5-0-0-0
AYES: Burks, Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
ABSTAIN: None
ABSENT: None
ACTION: 1ST READING APPROVED; 2ND READING ON JUNE 20, 2024 B. ADOPT A RESOLUTION APPROVING THE 2024-2025 ANNUAL ACTION
PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
Council/Agency Members Garcia-Arrazola and Miller recused themselves from the discussion and decision making of the item due to their seat on the board of a recipient.
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Thursday, June 6, 2024 City Council REGULAR Meeting Page 10 Haroon Noori, Administrative Analyst II, provided a presentation reviewing the CDBG program and the funding allocations requested for FY24-25.
PUBLIC COMMENT: None
On motion by Mayor Pro Tem Pacheco and second by Council/Agency Member Burks, and carried by the following vote, the City Council/Successor Agency moved to approve the 2024-2025 annual action plan for the CDBG program.
RESULT: 5-0-0-0
AYES: Burks, Garcia-Arrazola, Miller, Oglesby, Pacheco
NOES: None
ABSTAIN: None
ABSENT: None
ACTION: ADOPTED RESO
11. COUNCIL MEMBER REQUESTS
A. NEW COUNCIL MEMBER REQUESTS
None.
B. FOLLOW UP ON PREVIOUS REQUESTS
None.
12. CITY ATTORNEY, CITY MANAGER, CITY COUNCIL AND MAYOR COMMENTS
AND REPORTS ON COMMITTEE ASSIGNMENTS
Reports provided.
13. CLOSED SESSION
City Attorney Sheri Damon read the closed session items and anticipated a report out at the return to open session.
A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE 54956.8
Property: The Property Commonly Referred to As Campus Town (Property bounded by Highway 1/1st Avenue, 7th Avenue, Lightfighter/Colonel Durham Street, and Gigling)
Agency Negotiators: City Manager, et al.
Negotiating Parties: KBB Seaside Venture, et al. and City of Seaside Under Negotiation: price, terms of payment or both
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Thursday, June 6, 2024 City Council REGULAR Meeting Page 11 No report.
B. PUBLIC EMPLOYEE DISCIPLINE/DISMISSAL RELEASE PURSUANT TO GOVERNMENT CODE SECTION 54957
Title: City Manager
The City Council adopted a resolution that terminates an employment agreement with Jaime Fontes in accordance with paragraph 4 on a not-for-cause basis and directs the Acting Finance Director and other staff to make such severance payments and take all customary and necessary actions upon the termination of the contract.
RESULT: 4-1-0-0
AYES: Burks, Garcia-Arrazola, Oglesby, Pacheco
NOES: Miller
ABSTAIN: None
ABSENT: None
C. PUBLIC EMPLOYMENT PURSUANT TO GOVERNMENT CODE SECTION 54957
Title: City Manager
No report.
D. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE 54956.9 (d)(2)
Potential Litigation (2 matters)
No report.
14. ADJOURNMENT
With no further business, the meeting adjourned at 10:56 p.m.
Respectfully submitted,
_________________________ _________________________
Dominique L. Davis, City Clerk Ian N. Oglesby, Mayor
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City of Seaside
PROCLAMATION
Pollinator Week
June 17th-23rd, 2024
WHEREAS, in 2009 the U.S. Senate’s unanimous approval and designation of a week in June as “National Pollinator Week” marked a necessary step toward addressing the urgent issue of declining pollinator populations due to pesticide use, spread of invasive species, habitat loss, and climate change; and
WHEREAS, Pollinator Week has grown into an international celebration of the valuable ecosystem services provided by bees, birds, butterflies, bats and beetles; and WHEREAS, pollinator species are essential partners in producing much of our food supply, with one out of every three bites of our food created with their help; and WHEREAS, pollinator species provide significant environmental benefits that are necessary to maintain healthy, diverse urban and suburban ecosystems; and WHEREAS, pollination plays a vital role for trees and other plants in the community, enhancing quality of life and creating recreational and economic development opportunities; and
WHEREAS, the City of Seaside became a BEE CITY USA Affiliate on April 4, 2019 and committed to increase pollinator awareness and create supporting habitats; and WHEREAS, the first Seaside Pollinator Garden Parks tour of eight parks was held on Saturday October 2, 2021 and a subsequent Pollinator Celebration was held on June 24, 2023 at one of the City’s parks; and
WHEREAS, under the collaborative guidance of local California native plant experts, the Friends of Seaside Parks Association, Sustainable Seaside, and the city’s Environmental Commission, volunteers have been integral to the success of pollinator habitats in the City of Seaside, having established and maintained thousands of California native plants and more than 30 trees in public spaces since 2019; and
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WHEREAS, the City of Seaside provides recommendations to developers and residents regarding California native plant landscaping to promote conservation stewardship, and will continue to promote information regarding the protection of pollinators and maintenance of their habitats in urban and suburban environments;
NOW THEREFORE, BE IT PROCLAIMED, that, I, The Honorable Ian Oglesby, Mayor of the City of Seaside, California, on behalf of the City Council do hereby proclaim June 17 th
–
23 th
, 2024 as “Pollinator Week” in the City of Seaside, and I urge all citizens to celebrate Pollinator Week and to support efforts to enhance native pollinator habitats, and further, I urge all citizens to plant native species that support diverse, critical pollinator species to promote the well-being of this and future generations.
Ian N. Oglesby, Mayor
June 20, 2024
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CITY OF SEASIDE
STAFF REPORT
Item No.: 8.C.
TO: City Council
FROM: Nicholas Borges, Acting City Manager
BY: Dan Meewis, Recreation Director
DATE: June 20, 2024
SUBJECT: APPROVE A PROCLAMATION DESIGNATING JULY 2024 AS
PARKS AND RECREATION MONTH
RECOMMENDATION
Proclaim July 2024 as Parks and Recreation Month in the City of Seaside.
BACKGROUND
The request is to accept the proclamation designating July 2024 as Parks and Recreation Month.
FISCAL IMPACT
No fiscal impact
ATTACHMENTS
1. Parks and Recreation Month 2024
Reviewed for Submission to the City Council by:
________________________________________
Nicholas Borges, Acting City Manager
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City of Seaside
PROCLAMATION
Parks and Recreation Month
July 2024
WHEREAS, Parks and Recreation makes lives and communities better now and in the future; and
WHEREAS, it is established through statewide public opinion research, 98% of California households visit a local park at least once a year; two in three households visit a park once a month; 50% of households participate in an organized recreation program; and most park use is with family and friends; and
WHEREAS, residents value recreation as it provides positive alternatives for children and youth to reduce crime and mischief especially during non-school hours; it promotes the arts, it increases social connections; aids in therapy; and promotes lifelong learning; and
WHEREAS, residents value their parks for access to outdoor spaces for children and adults to play and be active; exercise and group sports; and WHEREAS, parks provide access to the serenity and the inspiration of nature and outdoor spaces as well as preserve and protect the historic, natural and cultural resources in our community; and
WHEREAS, the residents of the City of Seaside including children, youth, families, adults, seniors, businesses, community organizations, and visitors benefit from the wide range of parks, trails, open space, sports fields, tennis courts, facilities and programs including Soper Field, Cutino Park, Patchetti Park, Laguna Grande Park & Robert’s Lake Eco-Recreation Station provided by the City of Seaside; and WHEREAS, the City Council urges all its residents to recognize that parks and recreation enriches the lives of its residents and visitors as well as adding value to the community’s homes and neighborhoods; and
WHEREAS, July is celebrated across the nation as Parks and Recreation Month.
NOW THEREFORE, BE IT PROCLAIMED, that I, The Honorable Ian N. Oglesby, Mayor of the City of Seaside, on behalf of the City Council, do hereby proclaim July 2024, as “Parks and Recreation Month” and in doing so, urges all its citizens to use and enjoy its parks, trails, open space, facilities, and recreation opportunities. __________________
Ian N. Oglesby, Mayor
June 20, 2024
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CITY OF SEASIDE
STAFF REPORT
Item No.: 8.D.
TO: City Council
FROM: Nicholas Borges, Acting City Manager
BY: Dan Meewis, Recreation Director
DATE: June 20, 2024
SUBJECT: APPROVE MAYOR'S YOUTH FUND CONTRIBUTION REQUEST
FROM SEASIDE POLICE ACTIVITIES LEAGUE
RECOMMENDATION
Approve a request from Seaside Police Activities League (P.A.L.) for a donation of $3,000.00 from the Mayor’s Youth Fund to help cover the costs of new equipment, basketball uniforms, and referees.
BACKGROUND
The Seaside Police Activities League is requesting a donation of $3000.00 from the Mayor's Youth Fund to cover the costs associated with expenses related to their sports programs, including the purchase of new equipment, uniforms, tournament fees, insurance, and referees. The Seaside Police Activities League is a juvenile crime prevention program designed to provide athletic, recreational, and educational opportunities for at-risk youth. Seaside PAL was incorporated in February 2001. It is comprised of Police Officers, volunteers, Police Personnel, and Recreation Staff who serve as coaches, mentors, instructors, and role models.
All funds and donations for P.A.L. are used solely for the purpose of providing the resources needed to continue upholding P.A.L.'s mission. Seaside P.A.L.'s current activities include, JR Giants Baseball, Youth Basketball, Youth Soccer, and youth leadership experience. The Seaside Police Department CHAMP Program also assists with the program. In 2016, the Seaside P.A.L. merged with the City of Seaside's Recreation Department to strengthen existing and future sports programs for Seaside youth.
Currently, the Seaside P.A.L. provides organized sports and activities to 200 + local youth. P.A.L teaches the importance of recycling, and collects bottles and cans after games and practices and places them in the appropriate recycling containers at the Packet Page 22
Item No. 8.D. Page 2 of 2
location they are at.
Based on the information provided in the application, the request meets the criteria for the Mayor’s Youth Fund Policy. They received their last donation at the June 15, 2023, City Council meeting. They submitted their 2023 Mayor's Youth Fund Closing Report within the 60-day time frame.
FISCAL IMPACT
This request would be funded by a donation from the Green Waste Recovery's donation to the Mayor's Youth Fund. The current balance is the Mayor's Youth Fund account (601-2106) is $38,107.02. If the City Council approves this request, the balance will decrease to $35,107.02. This is for fiscal year 2023/24.
In the event that all of the funds in the Mayor's Youth Fund become exhausted, staff will keep a file of all applications. Once Green Waste issues the next round of funding, all applications on file will be processed at the next available City Council meeting.
ATTACHMENTS
1. MYF Seaside PAL 2024
2. Seaside PAL - W-9 - 2024
3. Seaside PAL 501(c)(3) information
4. Mayor's Youth Fund Closing Report - Seaside Police Activities League (PAL) 2023 Reviewed for Submission to the City Council by:
________________________________________
Nicholas Borges, Acting City Manager
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CITY OF SEASIDE
STAFF REPORT
Item No.: 8.E.
TO: City Council
FROM: Nicholas Borges, Acting City Manager
BY: Dan Meewis, Recreation Director
DATE: June 20, 2024
SUBJECT: APPROVE A MAYOR'S YOUTH FUND CONTRIBUTION REQUEST
FROM THE BOYS & GIRLS CLUBS OF MONTEREY COUNTY
RECOMMENDATION
Approve a request from Boys & Girls Clubs of Monterey County for a donation of $3,000.00 from the Mayor’s Youth Fund to help cover the costs of supplies required for their eight-week youth Summer Academy.
BACKGROUND
The Boys & Girls Clubs of Monterey County is requesting a donation of $3000.00 from the Mayor's Youth Fund to cover the costs associated with expenses related to their eight-week youth Summer Academy, including the purchase of art & craft supplies, lego, books, film-making software, healthy food, utensils, cookware, and small kitchen appliances. Their Summer Academy at the Seaside Clubhouse provides robust learning and hands-on projects for youth ages 6-18. Their overall goal is to serve 200 youth for the eight-week summer program from the hours of 8:00 a.m. to 12:00 p.m.
The Seaside Clubhouse engages in environmental sustainability through its EV fleet conversion. At least one field trip a week will be scheduled, ensuring the newest method of transportation will be utilized. Three meals a day will be provided for the youth and the remaining scraps and materials will be recycled or composted in their garden.
Based on the information provided in the application, the request meets the criteria for the Mayor’s Youth Fund Policy. They received their last donation at the June 20, 2019 City Council meeting. They submitted their 2019 Mayor's Youth Fund Closing Report within the 60-day time frame.
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Item No. 8.E. Page 2 of 2
FISCAL IMPACT
This request would be funded by a donation from the Green Waste Recovery's donation to the Mayor's Youth Fund. The current balance is the Mayor's Youth Fund account (601-2106) is $35,107.02. If the City Council approves this request, the balance will decrease to $32,107.02. This is for fiscal year 2023/24.
In the event that all of the funds in the Mayor's Youth Fund become exhausted, staff will keep a file of all applications. Once Green Waste issues the next round of funding, all applications on file will be processed at the next available City Council meeting.
ATTACHMENTS
1. Mayor's Youth Fund Request Boys & Girls Clubs of Monterey County 2024
2. W-9 - Boys & Girls Clubs of Monterey County 2024
3. Boys & Girls Clubs of Monterey County 501(c)(3)
4. Mayor's Youth Fund Closing Report - Boys & Girls Clubs of Monterey County 2019
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CITY OF SEASIDE
STAFF REPORT
Item No.: 8.F.
TO: City Council
FROM: Nicholas Borges, Acting City Manager
BY: Nisha Patel, Public Works Director/City Engineer
Patrick Grogan, Associate Engineer
DATE: June 20, 2024
SUBJECT: ADOPT A RESOLUTION AUTHORIZING AMENDMENT NO. 2 TO
THE PROFESSIONAL SERVICE AGREEMENT WITH WHITSON
ENGINEERS FOR FINAL DESIGN SERVICES AND DESIGN
SUPPORT DURING CONSTRUCTION FOR THE POLICE
DEPARTMENT PARKING LOT IMPROVEMENTS PROJECT FOR AN
AMOUNT NOT TO EXCEED $22,500.00
RECOMMENDATION
Adopt a resolution authorizing the City Manager to execute Amendment No. 2 to the professional services agreement with Whitson Engineers for final design services and design support during construction services for the Police Department Project for an amount not to exceed $22,500.00.
BACKGROUND
The Police Department Parking Lot Improvements project includes repaving the existing parking lot, providing a security fence and gates, new paving in a previously unpaved parking area, and constructing stormwater control and treatment devices. The project will also relocate the existing kennels and generator, and install lighting.
On August 10, 2022, the City entered into a professional services agreement (PSA) with Whitson Engineers, for project design services for the Police Parking Lot Improvements Project for the amount of $56,194.00. Whitson began developing plans for the project.
During the design phase, it was decided that it would be beneficial to add a sewer lateral for the staff trailers at City Hall. The lateral location is proposed to cut across the Police Department Parking Lot. Constructing the lateral with the Police Department Parking Lot rather than with a separate project prevents trenching through anewly Packet Page 48
Item No. 8.F. Page 2 of 2
paved parking lot. It was also discovered that additional structural engineering would need to be performed to relocate the generator from its current position in the parking lot, to a concrete pad behind a row of parking spaces. The City has requested Whitson be available to respond to questions, provide clarifications, and provide design updates as new conditions are uncovered in the field. Scope of work needs to be added to the Whitson PSA to complete the final design including design for the mentioned additional items. Design support during construction will also be needed. Whitson provided a proposal in the amount of $22,500.00 to perform the additional services. Staff reviewed the proposal and finds the scope and fee acceptable.
FISCAL IMPACT
Amendment No. 2 to the professional services agreement with Whitson Engineers to perform final design and design support during construction is for an amount not to exceed $22,500.00. The $22,500.00 amendment to the Whitson Engineers professional services agreement amends their agreement to a total amount of $78,694.00. In addition, the City Council previously approved a contingency on the contract of $5,619.40, or 10% of the original contract value. To date, that contingency has not been used. An additional contingency of approximately 13% of the new contract value, or $10,118.60, would bring the total contingency to $15,738.00. This amount is required for expenses for services for additional unforeseeable issues that may arise and approved on an as-needed basis by authorization of the City Manager, so that the total PSA amount including contingency does not exceed $94,432.
ATTACHMENTS
1. Resolution
2. PSA Amendment 2
Reviewed for Submission to the City Council by:
________________________________________
Nicholas Borges, Acting City Manager
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Meeting Date: 6/20/24
Item #: x.x.
RESOLUTION NO. 24-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASIDE AUTHORIZING AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICE
AGREEMENT WITH WHITSON ENGINEERS FOR FINAL DESIGN SERVICES AND
DESIGN SUPPORT DURING CONSTRUCTION FOR THE POLICE DEPARTMENT
PARKING LOT IMPROVEMENTS PROJECT FOR AN AMOUNT NOT TO EXCEED $22,500.00
WHEREAS, The Police Department Parking Lot Improvements Project is an approved project in the City of Seaside Capital Improvement Program; and WHEREAS, On August 10, 2022, the City entered into a professional service agreement with Whitson Engineers for project design services in the amount of $56,194.00; and
WHEREAS, Staff have added scope to the project which was not originally in the proposal, including the addition of sewer lateral for City facilities, structural engineering for the relocation of the generator, and design support during construction; and
WHEREAS, Whitson Engineers has expended $53,394.00 of the project budget to date in the development of the plan set; and
WHEREAS, Whitson Engineers is on the City approved list of design consultants to provide engineering services; and
WHEREAS, Staff has determined the proposed scope of work and budget are reasonable; and
WHEREAS, an amount of $5,619.40 contingency, 10% of the original contract value, was previously approved by the City Council; and WHEREAS, an additional amount of $10,118.60 contingency, approximately 13% of the new contract value to create a total contingency amount of $15,738.00, is appropriate for this project.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Seaside authorizes the City Manager to execute an Amendment No. 2 to the Professional Services Agreement with Whitson Engineers to provide final design and design support during construction services, for the Police Department Parking Lot Improvements Project for an amount not to exceed $22,500.00.
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-2
BE IT FURTHER RESOLVED that the City Council of the City of Seaside authorizes the City Manager to execute up $15,738.00 contingency for written amendments and extensions such that the total Professional Services Agreement does not exceed $94,432.00.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Seaside duly held on the 20th day of June, 2024, by the following vote:
AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
ABSTAIN: COUNCIL MEMBERS
APPROVED:
_______________________________
Ian N. Oglesby, Mayor
ATTEST:
______________________________
Dominique L. Davis, City Clerk
APPROVED TO FORM:
______________________________
Sheri L. Damon, City Attorney
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CONTRACT AMENDMENT #2
PROFESSIONAL SERVICES
City of Seaside
Date: June 4, 2024 Change Requested by: _ X_ City __ _ Consultant Contract Date Project Name
August 10, 2022 Police Department Parking Lot Improvements To (Consultant): Whitson Engineers, 6 Harris Court, Monterey, CA 93940 You are directed to make the following changes to the Contract Documents or amend the following described work not included in the contract documents for this project.
The purpose of this addendum is to provide additional professional services related to the project named above. The contract terms and conditions shall not be modified except for as stated herein.
MODIFY the following text in Section 1, “Term.”
This Agreement shall commence on the effective date stated above and shall remain and continue in effect until tasks described herein are completed, but in no event later than June 30, 2025, unless sooner terminated pursuant to the provisions of this Agreement.
MODIFY the following text in Section 2, “Services.”
Consultant shall perform the tasks described and set forth in Exhibit A and Exhibit A1 attached hereto and incorporated herein as though set forth in full. Consultant shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A and A1.
MODIFY the following text in Section 22, “Contents of Request for Proposal and Proposal.” Consultant is bound by the contents of City's Request for Proposal, Exhibit "C" hereto and incorporated herein by this reference, and the contents of the proposal submitted by the Consultant, Exhibit A and A1 attached hereto.
Original Contract
Amount
Previous CCO Total (Not
including this
Amendment)
This
Amendment
Total
Revised Contract
Amount
$56,194.00 $0.00 $22,500.00 $78,694.00
Original Contract
Time
Original Completion Date
Months to Add
(Including This
Amendment)
Revised Completion
Date
10 Months June 30, 2023 24 June 30, 2025
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2071.18 add 2r.doc
May 28, 2024 Project No.: 2071.18
Patrick Grogan
Associate Civil Engineer
City of Seaside, Public Works
440 Harcourt Ave.
Seaside, CA 93955
Re: Police Department Parking Lot Improvements
Additional Services Proposal (Amendment #2)
Dear Mr. Grogan:
Thank you for the opportunity to make this Additional Services Proposal. This proposal addresses additional surveying, utility locating, design and bid phase support for the project necessitated by a proposed expansion of project scope, as well as bid- and construction-phase support services.
SCOPE OF SERVICES
1. Incorporate the portable building sewer lateral into the project PS&E. As discussed, the sewer lateral may conflict with the existing public utilities within SR 218. It may be necessary to revise the design, or remove it from the scope, after potholing is performed by the construction contractor, during construction.
2. Incorporate the generator slab structural design and detailing into the project PS&E.
3. Provide design assistance during bidding as requested. We have included an allowance of 4 hours for this Task.
4. Provide design assistance during construction as requested. We have included the following in our allowance for this Task, assuming a total construction duration of 75 working days.
a. Pre-bid meeting – 2 hours
b. Weekly construction meetings – 20 hours.
c. Site visits – 8 hours
d. Written responses to Contractor’s Material Submittals – 12 hours e. Written responses to Requests for Information – 12 hours f. Drawing revisions – 8 hours
g. Final site walk and punch list – 4 hours
PAYMENT AND PROVISIONS:
We propose to do the above work on a Time and Materials basis. Our proposed Not to Exceed Fee is $22,500. A breakdown of this estimate is provided in the attached Time and Materials Estimate. Additional Services, if requested, will also be performed on a Time and Materials basis.
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May 28, 2024 | Job No. 2071.18
Police Department Parking Lot Improvements
t:\monterey projects\2071.18 - police station\docs\_contract\amend 2r\2071.18 add 2r.doc Page | 2 If you have any questions or need more information, please contact me at (831) 649- 5225.
Sincerely,
Nathaniel Milam, PE, QSD
Senior Civil Engineer
For Richard Weber PE, LS, QSD | Principal
RCE 55219, LS 8002, QSD 20534
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Police Department Parking Lot Improvements
Time and Materials Estimate
5/28/24 NDM T41
Additional Services (Amendment #2)
PE SCE LS AS AE2 1P 2P
Rate: $ 240 $ 195 $ 175 $ 150 $ 130 $ 210 $ 350 Hours Cost 1 Sewer Lateral Design and PS&E 8 16 24 $ 3,640
2 Generator Slab Design and PS&E (by subconsultant) 0 $ - 3 Bid Phase Design Assistance 4 4 $ 780
4 Construction Phase Design Assistance 0 $ -
a Pre-Bid Meeting 2 2 $ 390
b Weekly Meetings 20 20 $ 3,900
c Site Visits 8 8 $ 1,560
d Review Material Submittals 12 12 $ 2,340
e Respond to RFI's 12 12 $ 2,340
f Drawing Revisions 8 8 $ 1,560
g Final Site Walk / Punch List 4 4 $ 780
-- Project Management, QA/QC 8 8 $ 1,560
Subtotal: 0 86 0 0 16 0 0 102 $ 18,850
Construction Schedule: Professional Personnel Estimate: $ 18,850 60 WD's to Substantial Completion Structural Design and Detailing by RRM: $ 3,250 15 WD's to Final 10% Administrative Fee: $ 325
Assume 4 weeks rain delays Estimated Expenses: $ 75
Total Estimate, Construction Documents: $ 22,500
Total Estimate: $ 22,500
Totals
5/28/2024 Page 1 2071.18 Estimate Add 2R.xls
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3765 S. Higuera St., Ste. 102 • San Luis Obispo, CA 93401 p: (805) 543-1794 • f: (805) 543-4609
www.rrmdesign.com
a California corporation Lenny Grant, Architect C26973 Robert Camacho, PE 76597, Steve Webster LS 7561 Jeff Ferber, LA 2844 April 15, 2024
Transmitted via email: [email protected]
Nathaniel Milam, Senior Civil Engineer
Whitson Engineers
6 Harris Court
Monterey, CA 93940
RE: Seaside Police Station Generator Anchorage
Proposed Scope of Services
Dear Nathaniel,
RRM Design Group (RRM) is pleased to present this proposal for structural anchorage at the City of Seaside (City) Police Station. Below is a description of the proposed scope of services.
We appreciate the opportunity to provide you with a proposal and look forward to working with you on this project.
PROJECT UNDERSTANDING
This project is for the seismic anchorage of a new generator with a belly tank at the Seaside Police Station.
SCOPE OF SERVICES
Task ST.01: Structural Engineering Seismic Anchorage
This task includes the structural design and detailing of the site elements:
• Genset anchorage
Deliverables:
• Structural plans, details, and general notes
o Structural general notes
o Structural foundation plan
o Typical and element-specific details
o 24” x 36” plans/30” x 42” plans in AutoCAD/PDF format Packet Page 57
Seaside Police Station Generator Anchorage
Proposed Scope of Services
April 15, 2024
• Structural calculations
o Structural calculations will be provided to support structural construction documents for submission to City for building permit
o 8.5” x 11” in PDF format
• Construction Administration
o Limited to review of concrete mix design for conformance with approved plans Fixed Fee:
• $3,250 (see footnote A)
Reimbursable Expenses
All expenses incurred will be reimbursed pursuant to the rates, terms, and conditions in the attached Exhibit A-1.
SERVICES AND/OR INFORMATION TO BE PROVIDED BY CLIENT
• Generator cut sheets
• Geotechnical Report, if one is available
• Civil engineering sheets for equipment location and placement on-site
LIMITATIONS OF SCOPE AND EXCLUSIONS
Please note that the tasks to be performed by the RRM team are limited purely to those outlined above. Substantive changes requested by the Client or changes in the Client’s program or direction that are inconsistent with prior approvals are subject to additional services fees.
Any additional services that RRM Design Group is asked to perform over and beyond those described above will be billed on a negotiated and Client-approved, fixed-fee, or hourly basis per the terms of the attached Exhibit A-1.
The following services or tasks are specifically excluded from the scope:
• Temporary shoring and/or supports to facilitate construction, are assumed to be a means and methods construction item provided by the contractor
• MEP piping/supports including the following:
o Cable trays
o Trapeze systems
Fee Footnote
Fixed fee tasks will be billed as the work progresses until the task is completed and the total amount stated in the contract for the task is invoiced.
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Seaside Police Station Generator Anchorage
Proposed Scope of Services
April 15, 2024
EXHIBIT A-1: GENERAL PROVISIONS AND CONDITIONS
RRM Design Group and Client agree that Exhibit A-1 is hereby made part of this proposal.
If you have any questions or require clarification of the scope of services, Exhibit A-1, or fees outlined above, please do not hesitate to call us. If this scope of services is acceptable, please sign below indicating mutual agreement of the terms of this proposal; return one set to RRM and retain one set for your records. Thank you again for this opportunity.
Sincerely,
RRM DESIGN GROUP
Jessica Meadows, SE, PE Robert Camacho, PE, QSD
Project Manager Managing Partner
CA License No. S6488 CA License No. C76597
Attachment: Exhibit A-1
The person signing and executing this contract for the Client represents and warrants that he or she is duly authorized and has the legal capacity and actual authority to bind the Client to each and every term, condition, and obligation of this contract and that all requirements of the Client have been fulfilled to provide such authority.
AUTHORIZATION TO PROCEED BY CLIENT REPRESENTATIVE:
Sign Date
Print Name, Title
Billing Email (Please identify person’s name and email address to receive electronic invoices.)
Billing Address (if different from mailing address)
jmwN:\X-FILES\X-Files-3400\X3471-01-PS24-Seaside-Police-Station-Generator-Anchor\Proposal\Original-Docs\Proposal-Seaside-Police-Genset-jmw-04-15-24.docx Packet Page 59
www.rrmdesign.com
a California corporation Lenny Grant, Architect C26973 Jerry Michael, PE 36895, LS 6276 Jeff Ferber, LA 2844 www.rrmdesign.com
a California corporation Lenny Grant, Architect C26973 Robert Camacho, PE 76597 Steve Webster, LS 7561 Jeff Ferber, LA 2844 revised 07/17
EXHIBIT A-1
General Provisions and Conditions
The following are the terms and conditions under which
RRM Design Group agrees to provide professional
services to Client. This Exhibit is intended to supplement the Prime Agreement to which it is attached, and
together with any other attached exhibits and/or
schedules shall comprise the complete agreement (the
"Agreement"). Capitalized terms not defined herein shall have the meaning ascribed to them in the Agreement.
In the event of an inconsistency between this Exhibit
and the Agreement, the terms and conditions of this
Exhibit shall govern.
EMPLOYEE RATES (HOURLY). Unless otherwise
agreed in advance, the fees for professional services
performed by RRM Design Group shall be performed
on a time and materials basis at RRM Design Group's
then-current rates for such work. Schedule 1 attached
hereto and incorporated by this reference sets forth a
description of RRM Design Group's standard hourly
rates for its employees as of the date of this Agreement.
Hourly rates may vary according to employee
experience and proficiency. Hourly rates for expert
witness services or depositions shall be subject to a
premium of 2x the standard hourly rate. Overtime for
non-exempt employees, if requested by Client, shall be
charged at 1.25x the standard hourly rate.
SUBCONSULTANT EXPENSES. The fee for
subconsultants of RRM Design Group shall be actual
cost plus 10% to cover RRM Design Group's overhead
and administrative expenses. Typical subconsultants may include, but are not limited to:
Structural Engineer, Irrigation Consultant,
Geotechnical Consultant, Mechanical Engineer, Cost
Estimator, Archaeological Consultant, Electrical
Engineer, Soils Consultant, Traffic Consultant
RRM Design Group shall not be responsible or liable for subconsultants’ data, interpretations, and/or
recommendations.
REIMBURSABLE EXPENSES. Clients shall reimburse
RRM Design Group for all incidental expenses incurred
by RRM Design Group, or any subconsultant it may hire
to perform services for the Project, at actual cost plus 10% to cover its overhead and administrative expenses.
Reimbursable expenses shall include, but are not limited to, reproduction costs, postage, shipping and handling of drawings and documents, long distance communications,
fees paid to authorities having jurisdiction over the
Project, the expense of any additional insurance
requested by Client in excess of that normally carried
by RRM Design Group or by its subconsultants, travel
expenses (transportation/automobile/lodging/meals),
renderings, and models. Reimbursable automobile travel
mileage will be billed at the then-current IRS business standard mileage rate.
RRM DESIGN GROUP REPRODUCTIONS.
Photocopies shall be charged at a rate of $.20 per copy.
All other types of RRM Design Group reproductions
including, but not limited to, blueprinting, process
camera, typesetting, printing, and plotting, shall be billed at RRM Design Group's internal price sheet or, in the
case of work sent to outside vendors, at the local
vendor’s current rate plus 10% to cover RRM Design
Group's overhead and administrative expenses.
FEES AND PAYMENTS. Fees for employee rates,
subconsultant expenses, reimbursable expenses, and
RRM Design Group reproductions shall be billed to
Client on an "as-performed basis," unless otherwise
agreed by the parties in advance. PAYMENT SHALL BE
DUE AND PAYABLE UPON PRESENTATION. In
order to defray carrying charges resulting from delayed payments, a finance charge at 1.5% (or the maximum
rate allowed by law, whichever is less) per month shall be added to the unpaid balance after thirty (30) days
from the date of RRM Design Group’s invoice. RRM
Design Group, without any liability to Client, reserves the right to withhold services and work product
pending payment of Client's outstanding indebtedness or advance payment as required by RRM Design Group.
ADVANCE PAYMENT. RRM Design Group reserves
the right, from time to time, to require payment in
advance for work estimated to be done during a given
billing period.
COMMENCEMENT OF WORK. RRM Design Group’s
work will commence immediately upon receipt of
Client's retainer and/or a notice to proceed signed by
Client. If notice to proceed is delayed beyond thirty (30) days, it is understood that the terms and conditions of this Agreement are subject to revision.
TERMINATION OR SUSPENSION. Either party may
terminate or suspend this Agreement upon seven (7)
days prior written notice if the other party materially breaches or fails to perform any provision of this
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Exhibit A-1
www.rrmdesign.com
a California corporation Lenny Grant, Architect C26973 Robert Camacho, PE 76597 Steve Webster, LS 7561 Jeff Ferber, LA 2844 revised 07/17
Agreement and fails within seven (7) days after receipt of written notice from the non-breaching party to
commence, and continue, correction of such breach
with diligence and promptness. Failure of Client to make payments to RRM Design Group when due in
accordance with this Agreement shall constitute a
material breach of this Agreement and cause for
termination or, at RRM Design Group's option, cause
for suspension of performance of services. In the event of a suspension or termination of services as a result of Client's failure to pay, RRM Design Group shall have no further obligation or liability for loss or damage incurred by Client, including, but not limited to, damage caused by delay, loss of agency approvals, loss of financing, or interest expenses, because of such suspension or
termination of service. Before resuming services, RRM
Design Group shall be paid all sums due prior to
suspension and any expenses incurred in the
interruption and resumption of RRM Design Group's
services. RRM Design Group's fees for the remaining
services and the time schedules shall be adjusted
equitably by RRM Design Group.
Notwithstanding any provision to the contrary, RRM
Design Group shall be entitled to immediately, and
without notice, suspend the performance of any and all
its obligations pursuant to this Agreement if Client files a voluntary petition seeking relief under the United
States Bankruptcy Code or if there is an involuntary
petition filed against Client in the United States
Bankruptcy Court and that petition is not dismissed
within fifteen (15) days of its filing. Any suspension of services made pursuant to the provisions of this
paragraph shall continue until such time as this
Agreement had been fully and properly assumed in
accordance with the applicable provisions of the United States Bankruptcy Code and in compliance with the final order or judgment issued by the Bankruptcy Court. If
the suspension of services continues for a period in
excess of ninety (90) days, RRM Design Group shall
have the right to terminate all services pursuant to this Agreement.
ADDITIONAL SERVICES. Client agrees that if Client
requests services not specified in the scope of services described in this Agreement, Client will pay for all such additional services on a time and materials basis as extra services in accordance with the Employee Rates and
Subconsultant Expenses described above, and any other
provisions of this Agreement. Client agrees to
reimburse RRM Design Group at its then-current
standard rates for any unreimbursed costs it incurs to
comply with any request or subpoena by any attorney,
legal authority, agency, or court of law to provide
records, testimony, depositions, or any other form of
information related to any legal action involving Client in which RRM Design Group is not a named party.
ADDITIONAL DOCUMENTS. RRM Design Group
shall not be required to execute any document
subsequent to the signing of this Agreement that might
in any way, in the judgment of RRM Design Group,
breach RRM Design Group's contractual or legal
obligations or put at risk the availability or costs of its professional (if any) or general liability insurance.
LIMITATION OF LIABILITY. RRM Design Group’s
liability for damages arising from any claimed error,
omission or other professional negligence shall be
limited to $25,000 or the fee to be paid by Client for
the scope of work described in this agreement,
whichever is greater. At Client’s election, RRM Design
Group will waive this limitation of liability in
consideration of the payment by Client of the greater of $500.00 or 10% of the estimated (or agreed upon) cost
of the scope of work described in this Agreement. This
provision shall apply to all work performed by RRM
Design Group, and its employees, agents, retained
consultants, subconsultants, subcontractors, affiliates and representatives in connection with this Agreement,
whether or not the entire scope of such work is
described herein. Client’s fee for such waiver shall be payable in full within seven (7) days after execution of this agreement. Failure to remit payment within such
period shall render null and void Client’s election to
purchase such waiver of limitation. CLIENT’S
ELECTION TO PURCHASE A WAIVER OF
LIMITATION OF LIABILITY SHOULD BE INDICATED
BY INITIALING HERE: _______________.
THE PARTIES FURTHER AGREE THAT, TO THE
FULLEST EXTENT PERMITTED BY LAW, NEITHER
PARTY SHALL BE LIABLE TO THE OTHER FOR ANY
SPECIAL, INDIRECT, CONSEQUENTIAL OR
PUNITIVE DAMAGES.
INDEMNIFICATION. To the maximum extent
permissible by law, Client shall indemnify, defend, and hold harmless RRM Design Group and its officers,
directors, shareholders, partners, managers, members,
employees, agents, retained consultants, subconsultants, subcontractors, affiliates and representatives from and against any and all claims, demands, obligations, actions, suits, procedures, costs, expenses, damages, recoveries and deficiencies, injuries, liabilities or losses, including without limitation, interest, penalties, and reasonable attorneys' fees and costs, that arise from or relate to (i) the negligence, omissions, operations, or
misrepresentations of Client or Client's contractors or other consultants, their respective officers, directors, Packet Page 61
Exhibit A-1
www.rrmdesign.com
a California corporation Lenny Grant, Architect C26973 Robert Camacho, PE 76597 Steve Webster, LS 7561 Jeff Ferber, LA 2844 revised 07/17
shareholders, partners, managers, members, employees,
agents, affiliates and representatives with respect to the Project; or (ii) the default by Client hereunder excepting only those damages, liabilities or costs to the extent
caused by RRM Design Group’s negligent acts, errors or
omissions, or willful misconduct as determined by a
court of competent jurisdiction.
These indemnification provisions shall survive the
termination or expiration of this Agreement and shall
remain in full force and effect as long as permitted by applicable statutes of limitation.
INSURANCE. RRM Design Group shall obtain and
maintain until completion of the services liability,
property, and casualty insurance from a responsible
insurer having minimum limits of not less than
$1,000,000.00 for general liability and $1,000,000.00 for property and casualty losses for each occurrence and
workers' compensation insurance in the amount of the
statutory requirement. Client understands and
acknowledges that RRM Design Group is not obligated
to provide professional liability insurance.
TITLE. It is understood and agreed that all calculations, drawings, reports, specifications, documents, and data
developed for the Project, including drawings, reports, and data on any form of electronic media, developed for the Project (collectively, the "Project Materials") shall be and at all times remain the property of RRM Design
Group, who shall be deemed the author, and at all times shall retain all common law, statutory law, and other
rights, including copyrights, whether or not the Project is completed. Client agrees to not transfer to others,
use, or permit any other person to use the Project
Materials, in whole or in part, for any purpose or
project other than the Project, without the prior
written consent of RRM Design Group, which may be
withheld in RRM Design Group's discretion. Client
further agrees to waive all claims against RRM Design
Group resulting in any way from any unauthorized
changes or reuse of the Project Materials for any other project by anyone other than RRM Design Group. Upon
request and payment of all costs involved, Client is
entitled to a copy of all final plans and specifications for use in connection with the Project for which the plans
and specifications have been prepared. Client
acknowledges that its right to utilize final plans and
specifications and the services of RRM Design Group
pursuant to this Agreement will continue only so long as Client is not in default, pursuant to the terms and
conditions of this Agreement, and Client has performed
all of its obligations under this Agreement.
CLIENT RESPONSIBILITIES. Concurrent with the
execution of the Agreement, Client shall provide RRM
Design Group in writing with full information including a program setting forth Client’s design objectives,
constraints, and construction budget criteria as
applicable.
In addition, Client shall provide all information it has access to that relates to the site and the Project that may in any way bear upon the services of RRM Design
Group hereunder, including but not limited to, a legal
description of the site, a recent site survey, a site plan, the location of utilities and underground structures at the site, previous technical reports, and any previous
environmental assessments and/or audits.
At its sole expense, Client shall obtain all necessary
authorizations and permits to allow RRM Design Group
to have access to the site at reasonable times
throughout its performance of this Agreement. RRM
Design Group will take reasonable precautions to
minimize damage to the site, but unavoidable damage or
alteration may occur and Client agrees to assume sole
responsibility for the same. Client agrees to assume sole responsibility for damages due to RRM Design Group’s
interference with subterranean structures, such as
pipes, tanks, and utility lines, that are not correctly shown on the documents provided to RRM Design
Group by Client or any third party.
Client further agrees that to the extent work on an
existing site or facility requires RRM Design Group to
make certain assumptions regarding existing conditions, and because some of these assumptions may not be
verifiable without expending additional sums of money
or destroying otherwise adequate or serviceable
portion of the job site or facility, RRM Design Group
may not be able to obtain complete information about
existing conditions. To the maximum extent permissible
by law, Client shall indemnify, defend and hold harmless RRM Design Group and its officers, directors,
shareholders, partners, managers, members, employees,
agents, retained consultants, subconsultants,
subcontractors, affiliates and representatives from and against any and all claims, demands, obligations, actions, suits, procedures, costs, expenses, damages, recoveries and deficiencies, injuries, liabilities or losses, including without limitation, interest, penalties, and reasonable attorneys' fees and costs, that arise from or relate to site conditions of which RRM Design Group has not
been adequately informed.
Client shall furnish all legal, accounting, and insurance counseling services as may be necessary at any time for the Project, including auditing services Client may
Packet Page 62
Exhibit A-1
www.rrmdesign.com
a California corporation Lenny Grant, Architect C26973 Robert Camacho, PE 76597 Steve Webster, LS 7561 Jeff Ferber, LA 2844 revised 07/17
require to verify the contractor’s applications for
payment or to ascertain how or for what purposes the
contractor uses the moneys paid by Client. The
information above shall be furnished at Client’s expense and RRM Design Group shall be entitled to rely upon
the accuracy and completeness thereof.
If Client observes or otherwise becomes aware of any
fault or defect in the Project or nonconformance with
this Agreement, prompt written notice shall be given by Client to RRM Design Group.
Client shall furnish information and shall review RRM
Design Group work and provide decisions as
expeditiously as necessary for the orderly progress of
the Project and of RRM Design Group’s services.
Client understands and acknowledges that if the scope
of services includes RRM Design Group's assistance in
applying for governmental permits or approvals, RRM
Design Group's assistance shall not constitute a
representation, warranty, or guaranty that such permits or approvals will be acted upon favorably by any
governmental agency or be the only permits or
approvals required for the Project.
STANDARD OF PERFORMANCE. The standard of
care for all professional and related services performed or furnished by RRM Design Group under this
Agreement shall be in accordance with generally
accepted professional practice in the same or similar
localities at the time the services are performed. RRM
Design Group makes no warranties, express or implied,
under this Agreement or otherwise in connection with
RRM Design Group's services. Client acknowledges that
changes to this Project inevitably will be required as a result of minor omissions, ambiguities, or
inconsistencies in the plans and specifications, and
therefore Client agrees to make no claim against RRM
Design Group with respect to claims by the Project's
contractors or others as a result of such omissions,
ambiguities, or inconsistencies.
OPINION OF PROBABLE COST. Any evaluation of
Client's budget for the Project, preliminary estimates or updated estimates of probable cost prepared by RRM
Design Group represent RRM Design Group's opinion
as an experienced and qualified professional generally
familiar with the industry. It is recognized, however, that neither RRM Design Group nor Client has control over
the cost of labor, materials, equipment, or services
provided by others or over competitive bidding, market, or negotiating conditions. Accordingly, RRM Design
Group cannot and does not warrant or represent that
bids or negotiated prices will not vary from Client's
budget for the Project or any estimate or evaluation
prepared or agreed to by RRM Design Group.
HAZARDOUS ENVIRONMENTAL CONDITION.
Client acknowledges that RRM Design Group's scope of
services for this Project does not include any services related in any way to asbestos, PCB's, petroleum and/or hazardous or toxic materials (collectively, "Hazardous
Materials"). Should RRM Design Group or any other
party encounter any Hazardous Materials on the job
site, or should it in any other way become known that
Hazardous Materials are present or may be present on
the job site or any adjacent or nearby areas which may
affect RRM Design Group's services, RRM Design
Group may, at its option, suspend or terminate work on
the Project until Client: (i) retains a qualified contractor to abate and/or remove the Hazardous Materials; and
(ii) warrants that the job site is free from any Hazardous Materials and is in full compliance with applicable laws and regulations. If no such action is taken by Client,
RRM Design Group may terminate the Agreement. To
the maximum extent permissible by law, Client further
agrees to indemnify, defend and hold harmless RRM
Design Group, its officers, directors, shareholders,
partners, managers, members, employees, agents,
retained consultants, subconsultants, subcontractors,
affiliates and representatives from and against any and all claims, demands, obligations, actions, suits, procedures, costs, expenses, damages, recoveries and deficiencies,
injuries, liabilities or losses, including without limitation, interest, penalties, and reasonable attorneys' fees and costs, that arise from or relate to any Hazardous
Materials-related claims that may be brought by third
parties.
ARBITRATION. Any controversy arising out of or
pertaining to this contract, or its scope, interpretation, application, enforcement, or alleged breach, shall be
resolved through binding arbitration. Unless otherwise
agreed by the parties, the arbitration shall be conducted in the County of San Luis Obispo, California, before a
neutral arbitrator who is either a retired judge or an
attorney licensed in California with a minimum of ten
years’ litigation experience. The arbitration proceedings shall be conducted in accordance with the rules of
California Code of Civil Procedure §§ 1280 through
1294.2 and any successor provisions thereto, or any
other rules the parties mutually agreed upon in writing.
Any award of the arbitrator may be entered as a
judgment in any court having jurisdiction. The parties
understand that the results of the arbitration shall be binding upon them, and that they are waiving their rights to a trial by jury.
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Exhibit A-1
www.rrmdesign.com
a California corporation Lenny Grant, Architect C26973 Robert Camacho, PE 76597 Steve Webster, LS 7561 Jeff Ferber, LA 2844 revised 07/17
Either party may demand arbitration of any dispute by
providing the other party with written notice of the claim, the basis therefor, and the name of a proposed arbitrator.
Within ten (10) days of receipt of notice of a demand for arbitration, the recipient of said notice shall provide written notice to the other party of its response to said claim, the basis therefor, and either accepting the
proposed arbitrator or providing the name of an
alternative arbitrator. If the parties cannot mutually
agree on a proposed arbitrator, either party may apply to the superior court for appointment of an arbitrator.
The parties shall share equally all initial costs of
arbitration. The prevailing party shall be entitled to
reimbursement of attorneys’ fees, costs, and
expenses incurred in connection with the arbitration.
LIENS. This Agreement shall not be construed to alter,
affect, or waive any design professional's lien, mechanic's lien, or stop notice right which RRM Design Group may
have for the performance of services pursuant to this
Agreement. Concurrent with Client's execution of the
Agreement and from time to time thereafter as
appropriate, Client shall provide in writing to RRM
Design Group (i) the present name and address of the
record owner of the property upon which the Project is
located; (ii) the name and address of any and all lenders who may loan money on the Project and/or who are
entitled to receive a preliminary notice.
SUCCESSORS AND ASSIGNS. All of the terms,
conditions, and provisions of this Agreement shall inure to the benefit of and be binding upon Client, RRM
Design Group, and their respective successors and
assigns provided, however, that no assignment of this
Agreement shall be made without the written consent
of the parties to this Agreement.
FORCE MAJEURE. RRM Design Group is not
responsible, and shall not be deemed in default, for
delay caused by activities or factors beyond RRM Design Group's reasonable control, including, but not limited
to, delays by reason of strikes, lockouts, work
slowdowns or stoppages, accidents, acts of God, failure of Client to furnish timely information or to approve or disapprove of RRM Design Group's services promptly,
or faulty performance by Client or other contractors or governmental agencies. To the extent such delays cause
RRM Design Group to perform extra services, such
services shall be paid for solely by Client in accordance with the terms of this Agreement.
OTHER PROVISIONS. This Agreement together with
the Prime Agreement represents the entire agreement
between RRM Design Group and Client and supersedes
all prior negotiations, representations, or agreements, either written or oral. This Agreement may be amended
only by written instrument signed by both RRM Design
Group and Client. All rights and remedies conferred
under this Agreement or by any other instrument or
law shall be cumulative and may be exercised singularly or concurrently. Failure by either party to enforce any contract term shall not be deemed a waiver of future
enforcement of that or any other term. If any term,
provision, covenant or condition of this Agreement, or
the application thereof to any person, place or
circumstance, shall be held to be invalid, unenforceable or void, the remainder of this Agreement and such
term, provision, covenant or condition as applied to
other persons, places and circumstances shall remain in full force and effect. Any notice, request, authorization, direction, or other communication under this
Agreement shall be given in writing and delivered in
person or by certified or first-class United States mail, properly addressed and stamped with the required
postage to the intended recipient. The parties agree that they will execute such other instruments and
documents as are or may become necessary or
convenient to carry out the intent and purposes of this Agreement. All pronouns and any variations thereof
shall be deemed to refer to the masculine, feminine or
neuter, singular or plural, as the identity of the person, persons or entities may require. All headings in this
Agreement are inserted only for convenience and ease
of reference, and are not to be considered in the
construction or interpretation of any provision of this Agreement. Each individual executing this Agreement on
behalf of a party hereto, by his or her signature,
represents that he or she maintains full authority on
behalf of the applicable party to execute this
Agreement, and thereby bind the applicable party to all covenants, duties and obligations contained herein. This Agreement shall be construed as a whole, according to
its fair meaning, and not in favor of or against any party.
By way of example and not limitation, this Agreement
shall not be construed against the party responsible for any language in this Agreement. The failure of either
party, whether purposeful or otherwise, to exercise in
any instance any right, power or privilege under this
Agreement or under law shall not constitute a waiver of any other right, power or privilege, nor of the same
right, power or privilege in any other instance. Any
waiver by RRM Design Group must be in writing and
signed by an authorized representative of RRM Design
Group. Time is agreed to be of the essence with respect to this Agreement.
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EXHIBIT A-1 SCHEDULE 1
Bill Rate Ranges
Subject to change effective March 1st each year
ARCHITECTURE INTERIOR DESIGN
Intern 54 $ - $ Designer I 72 91 $ - $ 109
Designer I 81 $ - $ Designer II 88 109 $ - $ 133
Designer II 88 $ 130 $ Interior Designer I 95 $ - $ 140 Designer III 105 $ - $ Interior Designer II 105 167 $ - $ 168 Job Captain 105 $ - $ Interior Designer III 125 167 $ - $ 189 Architect 111 $ - $ Senior Interior Designe 170 r $ 135 - $ 210 Project Designer 123 $ - $ 193
Project Manager $ 128 - $ 207 LANDSCAPE ARCHITECTURE
Project Architect 123 $ - $ Intern 54 193 $ - $ 91
Senior Designer $ 150 - $ Assistant Designe 242 r $ 81 - $ 112 Senior Architect 150 $ - $ Associate Designe 256 r $ 89 - $ 137 Senior Project Manager $ 153 - $ Designe 263 r $ 102 - $ 150 Associate Manager of Architecture 159 $ - $ Senior Designe 245 r $ 116 - $ 175 Design Director $ 179 - $ Landscape Architect 105 301 $ - $ 158 Manager of Architecture 185 $ - $ Senior Landscape Architect 128 301 $ - $ 188 Director of Architecture 197 $ - $ Principal Landscape Architect 153 322 $ - $ 252 Principal 204 $ - $ Design Director (Landscape) 153 368 $ - $ 256 Managing Partner $ 220 - $ Manager of Landscape Architecture 162 442 $ - $ 259 Principal 204 $ - $ 368
ENGINEERING Managing Partner $ 220 - $ 442
CIVIL ENGINEERING
Construction Inspector $ 100 - $ 188 PLANNING
Designer I 75 $ - $ Intern 54 105 $ - $ 91
Designer II 85 $ - $ GIS Specialist 80 135 $ - $ 165
Associate Engineer $ 126 - $ Senior GIS Specialist 105 186 $ - $ 200 Senior Associate Engineer $ 143 - $ Assistant Planne 232 r $ 96 - $ 139 Engineer I 103 $ - $ Associate Planne 155 r $ 114 - $ 182 Engineer II 116 $ - $ Urban Designe 182 r $ 114 - $ 182 Project Engineer $ 139 - $ Senior Planne 205 r $ 145 - $ 222 Senior Project Engineer $ 156 - $ Senior Urban Designe 256 r $ 145 - $ 222 Project Manager $ 172 - $ Supervisor of Planning and Urban Design 152 271 $ - $ 229 Manager of Engineering Services 195 $ - $ Principal Planne 309 r $ 177 - $ 270 Principal 204 $ - $ Manager of Planning 190 368 $ - $ 284 Managing Partner $ 220 - $ Principal 204 442 $ - $ 368
STRUCTURAL ENGINEERING Managing Partner $ 220 - $ 442
Designer I 75 $ - $ 120
Designer II 87 $ - $ 136 CORPORATE SERVICES
Designer III 102 $ - $ File Clerk/Administrative Support 60 150 $ - $ 88 Senior Designer $ 122 - $ Receptionist 60 197 $ - $ 91
Engineer I 99 $ - $ Administrative Assistant 65 146 $ - $ 105 Engineer II 117 $ - $ Administrative Coordinato 182 r $ 81 - $ 140 Project Engineer $ 139 - $ Office Coordinato 205 r $ 81 - $ 140 Senior Project Engineer $ 156 - $ Office Manage 255 r $ 116 - $ 175 Project Manager $ 166 - $ Marketing Assistant 60 263 $ - $ 91 Manager of Engineering Services 189 $ - $ Marketing Coordinato 301 r $ 75 - $ 126 Principal 204 $ - $ Marketing Specialist 101 368 $ - $ 168 Managing Partner $ 220 - $ Senior Marketing Specialist 116 442 $ - $ 203 SURVEYING (Crew Rates) Business Development & Pursuits Supervisor $ 117 - $ 210 REGULAR Marketing Manager $ 137 - $ 256
One person w/ GPS or Robotic Workstation 170 $ - $ CEO 276 225 $ - $ 546 Two person 230 $ - $ 380
Three person 310 $ - $ 485
PREVAILING WAGE
One person w/ GPS or Robotic Workstation 260 $ - $ 360
Two person 325 $ - $ 370
Three person 410 $ - $ 595
Rev 3/1/2024
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CITY OF SEASIDE
STAFF REPORT
Item No.: 8.G.
TO: City Council
FROM: Sheri L. Damon, City Attorney
DATE: June 20, 2024
SUBJECT: ADOPT A RESOLUTION CONFIRMING SOURCES OF FUTURE
WATER SUPPLY FOR THE KB BAKEWELL SEASIDE VENTURE II
RESIDENTIAL AND COMMERCIAL DEVELOPMENT LOCATED
WITHIN THE CAMPUS TOWN SPECIFIC PLANNING AREA
RECOMMENDATION
Adopt a Resolution confirming sources of future water supply for the KB Bakewell Seaside Venture II residential and commecrical development located within the Campus Town specific planning area.
BACKGROUND
In 2017, the City of Seaside entered into a Purchase and Sale Agreement with KB Bakewell Seaside Venture II, LLC (Developer) to purchase the property within the Campus Town Specific Planning Area and to develop it with residential and commercial uses, including affordable housing units.
On or about March 5, 2020, the City approved the Campus Town Specific Plan, including a development agreement with the KB Bakewell Seaside VEnture II LLC for the development of a portion of the Campus Town Specific Planning area. The overall water demand for the Campus Town Specific Planning area is 441..6 acre feet of water per year. There is a condition of approval that requires water supplies to be available at the time of development. The City Council of the City of Seaside has already passed and adopted Resolutions 21-51, 22-87, 23-72 and 24-39 allocating 180.6 AFY of water (and 45.83 AFY of recycled water) for the Project for a non-revocable period of one year through June 18, 2025. The 180.6 AFY of potable water allocated pursuant to these previous resolutions is adequate to serve Phase 1 and to partially serve Phase 2 of the Project.
The Developer is seeking identification of the future water supplies to assure itself that adequate water supplies will be made available for the later phases of its portion of the Packet Page 66
Item No. 8.G. Page 2 of 3
Project, prior to proceeding with the acquisition of Phase 1A of the project. The amount of water the Developer has requested be identified is 130.2 acre feet of water.
Accordingly, the City has identified the following sources of water that may be used to supply the additional 130.2 acre feet of water. The future sources of water are as follows:
A. Thirty (30) acre feet of water from the remaining FORA water allocation currently assigned to the Main Gate property;
B. A priority position to take water from the In Lieu Water program at the Black Horse and Bayonet Golf Course, after the program has been verified; and C Additional or excess water supplies that might be made available by Marina Coast Water District.
A reallocation of a portion of the Main Gate water will affect the ultimate buildout of the Main Gate property. However, the Main Gate property is in the process of undergoing updated planning and it is unlikely there will be a demand for the 30-acre feet of water in the near term future. Additionally, there will remain on the property sufficient supplies to begin construction of the Courthouse project and any new development for the Main Gate site.
The City has begun to implement the water offset projects outlined in the Campus Town WSA and Mitigation Measure UTIL-1 and has obtained a Court judgment approving the Black Horse Bayonet In Lieu program which could supply up to 450 AFY as reclaimed water is applied to the golf course pursuant to that program. In October 2022, the City began taking delivery of advance treated water to irrigate the Blackhorse and Bayonet Golf Course. For water year 2022-23 (October 1, 2022-September 30, 2023), the City was able to accrue 385 AF of water credits and currently in water year 2023-24 (October 1, 2023-September 30, 2024), the golf course has utilized 150.51 acre feet through the end of May 2024. The total number of water credits available from the In Lieu program will vary based upon the demand and use of advanced treated water by the golf course Accordingly, the In Lieu program is in the process of verifying a safe amount of yearly water credits available from this program. The minimum amount of time for testing the system is estimated at three years and may take up to five years.
MCWD has asserted that it has excess supplies it would like to inject into the Seaside Basin. Additionally, MCWD has substantial reserves from the FORA water allocation, attributable and maintained currently as a result of potential water leakage that may potentially be made available to Projects. To the extent that any additional water is made available from MCWD, that water would also be available to the Project.
Ultimately, the KBBakewell Seaside Venture II is projected to deliver upon the acquisition of Phase 1A and ultimate build out of Phase 1A, 241 homes, 21 off-site veryPacket Page 67
Item No. 8.G. Page 3 of 3
low/low affordable apartments and hotel site and four potential commercial/restaurant pads together with attendant streets and infrastructure improvements.
FISCAL IMPACT
None
ATTACHMENTS
1. (Draft) Resolution-rev
Reviewed for Submission to the City Council by:
_________________________________________
Sheri L. Damon, City Attorney
Packet Page 68
1 RESOLUTION NO. 24-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASIDE CONFIRMING
FUTURE SOURCES OF WATER SUPPLY FOR THE KB BAKEWELL SEASIDE VENTURE II
RESIDENTIAL AND COMMERCIAL DEVELOPMENT LOCATED WITHIN THE CAMPUS
TOWN SPECIFIC PLANNING AREA
WHEREAS, the City of Seaside has entered into a Purchase and Sale Agreement with KB Bakewell Seaside Venture II, LLC (Developer) to purchase the property within the Campus Town Specific Planning Area and to develop it with residential and commercial uses, including affordable housing units pursuant to the City's Affordable Housing Ordinance (the Project).
WHEREAS, on March 5, 2020, the City adopted Resolution 20-05 certifying an Environmental Impact Report, including a water supply assessment (WSA) that explains the projected water demand of 441.6 AFY for the entire Campus Town Specific Planning area; identifies an existing available potable water allocation of 180.6 AFY; addresses mitigation measures; and describes additional long term water supply projects, confirming that the projected water demand of the entire Campus Town Specific Planning area will be met; and
WHEREAS, the water utility district, Marina Coast Water District (MCWD or the District), reviewed and confirmed the projections contained within the Water Supply Assessment (WSA) for the entire Campus Town Specific Planning area; and WHEREAS, as discussed in the Final EIR Water Master Response, Monterey County Water Resources Agency Agreement No. A-06404 allows the District to withdraw up to 6,600 AFY of potable water from the Salinas Valley Groundwater Basin for use in the District's Ord Community service area (also known as the FORA Allocation). The City of Seaside obtained 1,012.5 AFY of the FORA Allocation, of which it had previously sub-allocated 831.9 AFY to other projects, leaving 180.6 AFY of potable water unallocated; and
WHEREAS, the City Council of the City of Seaside passed and adopted Resolution 21-51, 22-87, 23- 72 and 24-39 ____allocating 180.6 AFY of water (and 45.83 AFY of recycled water) for the Project for a non-revocable period of one year through June 18, 2025; and WHEREAS, the 180.6 AFY of potable water allocated pursuant to these previous resolutions is adequate to serve Phase 1 and to partially serve Phase 2 of the Project, and a minimum of 130.2 AFY of potable water will be required to complete the Project, for a total demand of a minimum of 310.8 AFY of potable water; and
WHEREAS, on July 10, 2010, the City Council of the City of Seaside passed and adopted Resolution 10-43, certifying an Environmental Impact Report, including a water supply assessment for the Main Gate Specific Plan project, estimating water demand would range between 207.9 AFY to 213.1 AFY, which was incorporated into the projections contained in the Final Environmental Impact Report (EIR) for the Campus Town Specific Plan; and Packet Page 69
2 WHEREAS, some of the projects contemplated under the Main Gate Specific Plan are not currently proceeding within the next three years, resulting in available water supply; and WHEREAS, MCWD has signed agreements with Monterey One Water (M1 W) such that M1 W will provide MCWD with 600 AFY of advanced treatment water in Phase 1 of MCWD’s Recycled Water Project, of which 453 AFY of which has been allocated to the City of Seaside; and WHEREAS, the City has begun to implement the water offset projects outlined in the Campus Town WSA and Mitigation Measure UTIL-1 and has obtained a Court judgment approving the Black Horse Bayonet In Lieu program which could supply up to 450 AFY as reclaimed water is applied pursuant to that program; and
WHEREAS, in October 2022, the City began taking delivery of advance treated water to irrigate the Blackhorse and Bayonet Golf Course. For water year 2022-23 (October 1, 2022-September 30, 2023), the City was able to accrue 385 _____ AF of water credits and through May 31, 2024, 151 acre feet of water credits for Water Year 2023-24 thereby allowing the City to accumulate additional available water supplies; and
WHEREAS, the In Lieu program water credits will vary based upon wet years and dry years and is in the process of verifying a safe amount of yearly water credits available from this program.
The minimum amount of time for testing the system is estimated at three years and may take up to five years; and
WHEREAS, MCWD currently has sufficient water supply to meet the projected water demands associated with the entire Project and will be entering into a water infrastructure and service agreement with the Developer requiring both the construction of new infrastructure and the payment of water and sewer service fees; and
WHEREAS, the City has identified supplies of water from the following sources that may be made available to serve the Project:
30 AFY of water, previously identified from the FORA allocation for projects that are not currently proceeding within the Main Gate Specific Plan, and that would be made available for the Project;
Water from the Black Horse Bayonet In Lieu program, of which the Project will be given first priority water reservation, after the In Lieu program has been fully tested on capacity and as supply is made available;
To the extent that any additional water is made available from MCWD, that water would also be available to the Project; and
WHEREAS, the Project was approved on March 5, 2020, and its impacts were analyzed in the Campus Town EIR, which also incorporated the impacts analyzed in the Main Gate Specific Plan EIR, and this resolution is an additional implementing action consistent with CEQA Guidelines Commented [VEN1]: Specific amount to be provided
by City
Packet Page 70
3 Section 15378(c); and
WHEREAS, there has been no change to the Project or substantial changes in circumstances or new information that would warrant subsequent or supplemental environmental analysis under CEQA.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Seaside hereby confirms that a a minimum of 310.8 AFY of potable water will be made available to serve the Project, consisting of the 180.6 AFY previously allocated by resolution 24-39 and an additional 130.2 acre feet to be allocated prior to the completion of plans for Phase 2 of the project comprised of ____, an additional 30 AFY from the City’s FORA allocation, the water made available from the Black Horse Bayonet In Lieu program which will be allocated to the Project on a first priority basis after the system has been tested, and any additional water that is made available from MCWD to the City of Seaside as needed. The City may recall and re-allocate potable water allocated herein, except as otherwise provided for by resolution, , upon the earlier of June 18, 2030, the termination of the Development Agreement with KB Bakewell Seaside Venture II, LLC, or the completion of the Project by KBB Seaside Venture II, LLC.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Seaside duly held on the ____ day of June, 2024______, 202_, by the following vote:
AYES: _ COUNCIL MEMBERS _______
NOES: _ COUNCIL MEMBERS _______
ABSENT: _ COUNCIL MEMBERS _______
ABSTAIN: _ COUNCIL MEMBERS _______
Packet Page 71
CITY OF SEASIDE
STAFF REPORT
Item No.: 8.H.
TO: City Council
FROM: Nicholas Borges, Acting City Manager
BY: Sheri Damon, City Attorney
DATE: June 20, 2024
SUBJECT: APPROVE REQUEST TO MODIFY ITEM 7 OF THE SCHEDULE OF
PERFORMANCE EXTENDING THE DATE TO CLOSE A HOTEL
CONSTRUCTION LOAN FOR THE GRAND HYATT HOTEL TO
JANUARY 31, 2025. THIS ITEM IS EXEMPT FROM CEQA
PURSUANT TO 15061(C)(3).
RECOMMENDATION
Consider request to extend the date to close a Hotel Construction loan to January 31, 2025
BACKGROUND
This is a request by SKDG to extend the date for the Closing of a Hotel Construction loan, currently set for July 12, 2024 to January 31, 2025. The Owner has already begun performing under the Schedule of Performance established for the hotel portion and timeshare portion of the Seaside Resort development. SKDG acquired the hotel parcel on or about December 2021 (and assumed the golf course lease) and its attendant subsidiary acquired the remaining timeshare parcels on or about May 2023.
In July 2023, the Owner submitted a Hotel Management Agreement for the operation of a Grand Hyatt Hotel and has already submitted schematic design drawings.
Additionally, the prerequisite work to improve McClure Way and to pull power across General Jim Moore Blvd to supply the project has begun. In preparation for the rough grading, the previously identified trees have been removed and the parking lot area and storm drainage basin area improvements have begun. The rough grading plans have been completed, the finish grading plans are almost completed and the hotel's building plans are almost completed. The Owner has started these items utilizing its own capital and intends material commencement of Hotel Improvements by September 11, 2024 all using its own capital and in accordance with the Schedule of Performance. The Owner Packet Page 72
Item No. 8.H. Page 2 of 2
estimates that it will not need to begin to draw on its construction loan for the project until February 2025 and is accordingly asking that the date be extended to January 31, 2025. Thus, for business reasons and in order to keep costs at a minimum, it has requested an extension of the date by which a hotel construction loan must be obtained.
FISCAL IMPACT
None to Positive.
ATTACHMENTS
1. Reso 24-xx re Item 7 Performance Schedule -rev
2. Exhibit A Performance Schedule-rev
3. Seaside City Letter - DDA modification request 6-11
Reviewed for Submission to the City Council by:
________________________________________
Nicholas Borges, Acting City Manager
Packet Page 73
RESOLUTION NO. 24-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASIDE
AUTHORIZING THE CITY TO ENTER INTO AN AMENDMENT TO THE
SECOND AMENDED AND RESTATED DISPOSITION AND DEVELOPMENT AGREEMENT WHICH MODIFIES ITEM 7 OF THE SCHEDULE OF
PERFORMANCE FOR THE SEASIDE RESORT DEVELOPMENT FOR THE
HOTEL AND TIMESHARE COMPONENTS ADJACENT TO THE BLACK
HORSE AND BAYONENT GOLF COURSE
RECITALS:
A. In 1996, the City of Seaside (''City'1 purchased the approximately 400- acre Black Horse and Bayonet Golf Courses (''Golf Courses'1 from the US Army with City funds.
On January 15, 1997, the City and BSL Golf of California, Inc. (''BSL'1 entered into a 75- year ground lease (''Original Lease'1 for the operation and maintenance of the Golf Courses.
B. Over the course of years from 2005 through 2019, the City Council, the Redevelopment Agency and the Successor Agency pursued multiple actions to advance the development of the Seaside Resort Project. On June 11, 2019, the City Council acting on its own behalf and in its role as Successor to the Redevelopment Agency, approved the Second Amended and Restated Disposition and Development Agreement, conveyed the property to the City and then the City sold the property to the developer Cypress Seaside Resort. The proceeds from that sale were distributed in accordance with the provisions of a Master Taxing Agreement which resulted in the majority of the revenues being transferred to the Monterey County Office of Education. In accordance with Redevelopment Law, Seaside retained approximately 20% of the net sales price. That sale transaction was completed on or about September 30, 2020.
C. The City negotiated extensions to the timelines to the Performance Schedule by adopting Resolution 20-72 and 21-81 which modified the Performance Schedule based upon the state of emergency and impact on tourism during 2020 and other business reasons in 2021.
D. On or about June 5, 2024, the City received a written request from the owner/representative SDKG requesting a modification to the Closing of a Hotel Construction Loan (Item 7 of the Performance Schedule) from July 12, 2024 to January 31, 2025. The Owner has asserted that they will not need to drawn on the construction loan until February 2025 and that they have been using their own capital to meet the other obligations set forth in the Performance Schedule.
E. Developer has begun compliance on elements of the Performance Scehdule, including but not limited to providing a hotel management agreement for the operation of a Grand Hyatt Hotel, construction improvements to McClure Way, initial granding of storm drainage facilities and parking areas and pulling power from the east side of General Jim Moore Boulevard to the west side in order to provide power for the Packet Page 74
hotel construction and operation. It has delivered schematic design drawings and technical building plans for the hotel construction which are in process.
F. The Owner’s representative has stated that he intends to commence hotel improvements by September 11, 2024 in accordance with the Performance Schedule, using its own capital to begin such improvements.
G. The City has agreed to extend the time for acquiring the construction loan to January 31, 2025 in order to accommodate the request of the Developer. The remainder of the Performance requirements are not being requested to be modified.
Packet Page 75
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEASIDE HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:
Section 1. The above recitals are true and correct and are a substantive part of this Resolution.
Section 2. The City Council certified a Final Environmental Impact Report for the Project on July 7, 2005, and thereafter, on August 17, 2005, adopted Addendum No. 1, on February 5, 2014, adopted Addendum No. 2, on December 10, 2014, adopted Addendum No. 3, and on December 7, 2017, adopted Addendum No. 4 and on or about October 26, 2022 adopted Addendum No. 5. The City Council hereby finds that although the extension for the closing of the sale of the hotel/resort land, timeshare land and residential land, as set forth in the Second Amended DDA are within the scope of the Final Environmental Impact Report and Addendum Nos. 1 through 5, and given the Developer’s statement of fact, it can also be seen with certainty that there is no possibility that the activity in question will not have a significant effect on the environment, and therefor modification of the timing of obtaining a construction loan is not subject to CEQA. [State CEQA Guidelines Section 15061(b)(3)]. No review under the California Environmental Quality Act is required in connection with the extension of Item 7 to the performance schedule to the Second Amended DDA.
Section 3. The Mayor, (or, in the Mayor's absence, the Mayor Pro Tern) is hereby authorized and directed to execute and deliver, for and in the name of the City, the amendment to the Performance Schedule to the Second Amended DDA in substantially such form as attached Exhibit A, with changes therein as the Mayor (or the Mayor Pro Tern, as the case may be) may approve in consultation with the City's attorney (such approval to be conclusively evidenced by the execution and delivery thereof).
Section 4. The officers and staff of the City are hereby authorized and directed, jointly and severally, to execute such instruments and do any and all things which they may deem necessary or advisable to effectuate this Resolution and any such actions previously taken by such officers and staff are hereby ratified and confirmed.
Section 5. This Resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Seaside duly held on the _____th day of June, 2024, by the following vote:
AYES:
NO:
ABSENT:
COUNCILMEMBERS:
COUNCILMEMBERS:
COUNCILMEMBERS:
- 2 -
Packet Page 76
Ian N. Oglesby, Mayor
ATTEST:
Dominique Davis, City Clerk
APPROVED AS TO FORM:
______________________________
Sheri L. Damon, City Attorney
Packet Page 77
- 3
-
Packet Page 78
Packet Page 79
AMENDMENT TO SECOND AMENDED AND RESTATED
DISPOSITION AND DEVELOPMENT AGREEMENT
THIS AMENDMENT TO SECOND AMENDED AND RESTATED DISPOSITION AND DEVELOPMENT AGREEMENT (“Amendment”) is dated as of ________________, 2024, by and among CITY OF SEASIDE, a California municipal corporation (“City”), and SKDG, a Florida limited liability company (“SKDG”).
RECITALS
A. The City and Cypress Seaside are parties to a Second Amended and Restated Disposition and Development Agreement dated as of June 12, 2019 (the “DDA”). Terms described in the DDA shall have the same meaning when used in this Amendment unless otherwise specifically defined in this Amendment.
B. On October 1, 2019, pursuant to the DDA, the Seaside Entities purchased the property from the City. In particular, the City conveyed the Hotel Phase Land to Seaside Hotel Investors.
C. On May 27, 2020, the Seaside Hotel Investors sent a written request for extension due the Covid-19 pandemic and making representations that they were poised to comply with the hotel management agreement and schematic design drawings. The City Council adopted Resolution 20-72 which extended the dates.
D. In 2021, the City modified the Performance Schedule again to accommodate the anticipated sale of the hotel site to SKDG. The City extended the Performance Schedule via Resolution 21-81.
E. SKDG (and its subsidiary, Seaside Peninsula Acquisition Group LLC a Delaware limited liability company) purchased the hotel parcels in late 2021 and its subsidiary acquired the remaining timeshare parcels on or about May 2023 and accordingly is subject to the DDA and its amendments.
F. The City, and the SKDG and it subsidiary, desire to amend the DDA as provided in this Amendment.
NOW THEREFORE, the City and SKDG agree as follows:
1. The recitals are incorporated into this agreement and are the fundamental basis upon which the City enters this agreement.
2. Modification of Schedule of Performance
a. The deadlines in the Schedule of Performance (DDA Attachment No. 3) for item 7 is amended to extend the date to January 31, 2025. The updated Schedule of Performance is as provided below:
Packet Page 80
4. Execution of Hotel Management Agreement with a
management company listed on Attachment No. 4 and
consistent with this Restated DDA and delivery of
copy to City (fees and other proprietary provisions
may be redacted)
July 31, 2023*
5. Schematic Design Drawings for the Hotel, containing
the elements described below, delivered to the City October 31, 2023
6. Delivery of final plans and specifications for the
Hotel that are reasonably acceptable to City June 11, 2024*
7. Closing of Hotel construction loan in amount
sufficient to pay all costs not paid with committed
equity funds, and consistent with the Budget (City not
being obligated to subordinate its right of reversion
unless it provides for City’s repurchase price of
$800,000 to be paid to lender in exchange for
reconveyance of lender’s deed of trust and other
documents/interests)
January 31, 2025*
8. Developer obtains all permits required for Hotel
development/construction (and pays all fees) September 10, 2024*
9. Material commencement of Hotel improvements September 11, 2024*
10. Completion of Hotel July 12, 2026*
11. Issuance of grading or building permits and
commencement of construction of the permitted
improvement on a Residential Parcel. [PC 9(b)]
December 31, 2028 (not
extended by this
Amendment)
12. Issuance of grading or building permits and
commencement of construction of the permitted
improvement on a Timeshare Parcel. [PC 9(b)]
December 31, 2028 (not
extended by this
Amendment)
2. Ratification. Except as specifically modified in this Amendment, all applicable terms of the DDA remain unmodified and in full force and effect.
3. Execution in Counterparts. This Amendment may be executed in counterparts, each of which, and all of which together, shall constitute one and the same Agreement. [Signatures begin on the next page.]
Packet Page 81
IN WITNESS WHEREOF, the Parties hereto have executed this Amendment as of the day and year first written above.
CITY OF SEASIDE
By:
Print Name:
Title:
ATTEST:
______________________________
Dominique Davis, City Clerk
APPROVED AS TO FORM:
_______________________________
Sheri L. Damon,
City Attorney
[Signatures continue on the next page.]
Packet Page 82
By: Seaside Peninsula Acquisition Group LLC, a Delaware limited liability company
By Seaside Peninsula Acquisition Manager, LLC, a Delaware limited liability company, its Manager,
By SKDG Investments, LLC, a Florida limited liability
company, its Manager
By:
Kiran C. Patel, its manager
[Signatures continue on the next page.]
Packet Page 83
Packet Page 84
June 11, 2024
Sent via Email
Sheri L. Damon
City Attorney
City of Seaside California
Re: Seaside Resort Development Loan Closing Date
As you are aware, we have commenced the utilities and road improvement project for McClure Way are making great progress while spending millions of dollars in preparation for the commencement of hotel construction.
Per the DDA Schedule of Performance #7, we are required to close the construction loan for the hotel on or before July 12th, 2024. I am requesting that requirement #7 be extended until January of 2025 as our construction draw schedule doesn’t actually have any loan draws until February 2025 while we are spending equity to reach the threshold for the loan to commence funding. We will still meet requirements 8 and 9 (picking up permits and commencement of construction) prior to September 10th and 11th, 2024 respectively.
Additionally, we were tracking to receive our building permit in May 2024 after our GMP Permit submittal on 1/10/2024, which met the DDA Schedule of Performance #6: “Delivery of final plans and specifications for the Hotel that are reasonably acceptable to City”. Our first set of City plan review comments (dated 4/26/2024) were delivered to us on 5/10/2024 – 5 months after submitting final plans. This delay has caused our construction lender to ‘put on hold’ the loan closing process until they have the proof we have an approved building permit and are fully able to complete the project.
SKDG INVESTMENTS, LLC
By: __________________________
Name: Gregory T. Ogle
Title: Manager
Packet Page 85
CITY OF SEASIDE
STAFF REPORT
Item No.: 8.I.
TO: City Council
FROM: Nicholas Borges, Acting City Manager
BY: Nisha Patel, Public Works Director/City Engineer
DATE: June 20, 2024
SUBJECT: ADOPT A RESOLUTION AUTHORIZING A PROFESSIONAL
SERVICE AGREEMENT WITH WALLACE GROUP FOR AN
AMOUNT NOT TO EXCEED $193,734.00 FOR CONSTRUCTION
MANAGEMENT AND INSPECTION OF THE GRAND HYATT
SEASIDE RESORT HOTEL CONSTRUCTION TO BE REIMBURSED
BY THE DEVELOPER
RECOMMENDATION
Adopt a resolution authorizing a professional services agreement with Wallace Group for an amount not to exceed $193,734.00 for construction management and inspection of the Grand Hyatt Seaside Resort Hotel to be reimbursed by the developer.
BACKGROUND
The Grand Hyatt Seaside Resort Hotel is being developed by Seaside Acquisition Group.
The project will construct an eight level, 307,200 square feet single building hotel with 330 guest rooms, conference center with meeting rooms, restaurant, lobby bar, service kitchen, administrative offices, spa and fitness, and service and circulation areas. The outdoor area proposes an outdoor swimming pool adjacent to the south level of the hotel building. Surface parking for the proposed hotel property and golf course will be located largely between the hotel and the golf clubhouse to the west. Additional parking will be available within an overflow parking lot located along General Jim Moore to the east as originally approved and valet parking on Level one below the event center.
McClure Way, a two-way road, will also be improved, and it will provide access to the surface parking lot and valet parking on the west side of the hotel and the overflow parking on General Jim Moore Boulevard. Some other associated improvements include water, sewer, and storm drain lines, and storm water treatment devices. Installation of water and sewer utilities, to be owned and maintained by MCWD, in McClure Way has Packet Page 86
Item No. 8.I. Page 2 of 3
already started. Grading for the hotel portion of the project is expected to start in July 2024.
The project will require construction management and inspection services, and the level of effort required to perform inspection for a project of this size exceeds the current resources of the Engineering Division. Staff requested a proposal from Wallace Group, a firm on our pre-qualified on-call list for engineering services review, to perform construction management and inspection services for grading, and the public roadway, parking lot, new storm drain systems, detention/ water quality basins, and permanent storm water treatment device construction.
Staff selected Wallace Group to perform the inspections because they have successfully managed and inspected construction of large projects for the City in the recent past and the scope of their proposal. The Wallace Group proposal for construction management and inspection is in the amount of $193,734.00. Services are to be paid on a time and materials basis according to the Wallace Group rate schedule.
Staff recommends adopting a resolution (Attachment 1) authorizing the City Manager to execute a professional services agreement (Attachment 2) with Wallace in the amount of $193,734.00 for construction management and inspection services for the Grand Hyatt Seaside Resort Hotel.
FISCAL IMPACT
A professional services agreement with Wallace Group will have no fiscal impact on the General Fund. The City's adopted fee schedule requires the Developer to pay actual costs for inspection for commercial and multifamily developments greater than 1 acre in size. Expenses associated with the professional services agreement with Wallace Group will be charged to a deposit account no. 601-2313 funded by the Developer.
Projects of this size and complexity have the potential to encounter unforeseen conditions requiring specialized review. Staff recommends the City Council authorize the City Manager to execute amendments to a professional services agreement in the amount of $10,000.00 to be funded by Developer deposits.
ATTACHMENTS
1. Resolution
2. PSA with Wallace Group
Reviewed for Submission to the City Council by:
Packet Page 87
Item No. 8.I. Page 3 of 3
________________________________________
Nicholas Borges, Acting City Manager
Packet Page 88
Meeting Date: 6/20/24
Item #: X.X.
RESOLUTION NO. 24-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASIDE
AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH WALLACE GROUP IN THE AMOUNT OF $193,734.00 TO
PROVIDE CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR
THE GRAND HYATT SEASIDE RESORT HOTEL
WHEREAS, the Grand Hyatt Seaside Resort Hotel is being developed by Seaside Acquisition Group (Developer); and
WHEREAS, the Developer is planning to start grading for the hotel portion of the project is expected to start in July 2024.; and
WHEREAS, the level of effort required to perform inspection for a project of this size exceeds the current resources of the City Engineering Division; and WHEREAS, on June 2, 2022, the City approved an on-call list for engineering services for a period of 3 years with optional two one year extensions; and WHEREAS, the Wallace Group (Consultant) is included on the on-call engineering services list; and
WHEREAS, on June 14, 2024, Wallace Group submitted a proposal to provide construction and inspection for the Grand Hyatt Seaside Resort Hotel Project; and WHEREAS, staff have reviewed the proposal and determined the scope services and fees are reasonable; and
WHEREAS, in accordance with the City’s adopted fee schedule, the Developer is responsible for the actual costs incurred by the City for the inspection of grading and improvements; and
WHEREAS, deposit account no. 601-2313 has been established for the tracking of costs incurred by the City to process the Project, and the Professional Services Agreement will be funded from said deposit account; and WHEREAS, a development of this size and complexity has the potential to encounter unforeseen conditions requiring the specialized services of the Consultant; and
Packet Page 89
-2
WHEREAS, an amount of $10,000 contingency, approximately 5.2% of the professional services agreement, should be authorized on an as needed basis; and WHEREAS, a total contract amount of $203,734.00, to be funded by Developer deposits, is estimated to be sufficient to address unforeseen conditions requiring construction management and inspection.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Seaside does hereby authorizes the City Manager to execute a professional services agreement with the Wallace Group in the amount of $193,734.00 and any future amendments to the agreement such that the total contract value does not exceed $203,734.00.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Seaside duly held on the 20th day of June 2024, by the following vote:
AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
ABSTAIN: COUNCIL MEMBERS
APPROVED:
_______________________________
Ian N. Oglesby, Mayor
ATTEST:
______________________________
Dominique L. Davis, City Clerk
APPROVED TO FORM:
______________________________
Sheri L. Damon, City Attorney
Packet Page 90
CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR GRAND HYATT
DEVELOPMENT PROJECT
Rev. 1/18 Page 1 COS Design PSA
CITY OF SEASIDE
DESIGN PROFESSIONAL SERVICE AGREEMENT
FOR CONSTRUCTION MANAGEMENT AND INSPECTION
SERVICES FOR GRAND HYATT DEVELOPMENT PROJECT
THIS AGREEMENT, is made and effective June 20, 2024 between the City of Seaside, a municipal corporation ("Agency") and Wallace Group, a California Corporation (“Consultant”). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. TERM
This Agreement shall commence on the effective date above and shall remain and continue in effect until tasks described herein are completed, but in no event later than June 30, 2025, unless sooner terminated pursuant to the provisions of this Agreement.
2. SERVICES
Consultant shall perform the tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. Consultant shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A.
3. PERFORMANCE
Consultant shall at all times faithfully, competently and to the best of his/her ability, experience, and talent, perform all tasks described herein. Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement.
4. AGENCY MANAGEMENT
Agency’s City Engineer shall represent Agency in all matters pertaining to the administration of this Agreement, review and approval of all products submitted by Consultant, but not including the authority to enlarge the Tasks to Be Performed or change the compensation due to Consultant. Agency’s City Manager shall be authorized to act on Agency's behalf and to execute all necessary documents which enlarge the Tasks to Be Performed or change Consultant's compensation, subject to Section 5 hereof.
Packet Page 91
CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR GRAND HYATT
DEVELOPMENT PROJECT
Rev. 1/18 Page 2 COS Design PSA
5. PAYMENT
(a) The Agency agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. This amount shall not exceed ONE HUNDRED NINETY THREE THOUSAND SEVEN HUNDRED
THIRTY FOUR dollars ($193,734.00) for the total term of the Agreement unless additional payment is approved as provided in this Agreement. (b) Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the Agency City Manager. Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by Agency City Manager and Consultant at the time Agency's written authorization is given to Consultant for the performance of said services.
(c) Consultant will submit invoices monthly for actual services performed.
Invoices shall be submitted on or about the first business day of each month, or as soon thereafter as practical, for services provided in the previous month.
Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the Agency disputes any of Consultant's fees it shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice.
6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE (a) The Agency may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the consultant at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the Agency suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement.
(b) In the event this Agreement is terminated pursuant to this Section, the Agency shall pay to Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of value to the Agency.
Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the Agency pursuant to Section 3.
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DEVELOPMENT PROJECT
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7. DEFAULT OF CONSULTANT
(a) The Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, Agency shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of the Consultant, it shall not be considered a default.
(b) If the Agency Manager or his/her delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Consultant a written notice of the default. The Consultant shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance.
In the event that the Consultant fails to cure its default within such period of time, the Agency shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.
8. OWNERSHIP OF DOCUMENTS
(a) Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by Agency that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of Agency or its designees at reasonable times to such books and records; shall give Agency the right to examine and audit said books and records; shall permit Agency to make transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement.
Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. (b) Upon completion of, or in the event of termination or suspension of this Agreement, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, computer discs, and reports prepared by the Contractor under this Agreement shall become the sole property of City and may be used, reused, or otherwise disposed of by City without the permission of Packet Page 93
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Contractor. With respect to computer files, Contractor shall make available to City, at City's office and upon reasonable written request by City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files.
9. INDEMNITY AND DEFENSE
(a) Indemnification and Defense for Professional Services To the fullest extent permitted by law, Consultant shall indemnify, defend and hold harmless Agency and any and all of its officials, employees and agents (“Indemnified Parties”) from and against any and all claims, losses, liabilities, damages, costs and expenses, including attorney’s fees and costs, to the extent they arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.
Consultant’s duty to defend shall consist of reimbursement of defense costs incurred by Agency in direct proportion to the Consultant’s proportionate percentage of fault. Consultant’s percentage of fault shall be determined, as applicable, by a court of law, jury or arbitrator. In the event any loss, liability or damage is incurred by way of settlement or resolution without a court, jury or arbitrator having made a determination of the Consultant’s percentage of fault, the parties agree to mediation with a third party neutral to determine the Consultant’s proportionate percentage of fault for purposes of determining the amount of indemnity and defense cost reimbursement owed to the Agency.
(b) For All Other Liabilities
Notwithstanding the foregoing and without diminishing any rights of Agency under Section 9.A, for any liability, claim, demand, allegation against Agency arising out of, related to, or pertaining to any act or omission of Consultant, but which is not a design professional service, Consultant shall defend, indemnify, and hold harmless Agency, its officials, employees, and agents (“Indemnified Parties”) from and against any and all damages, costs, expenses (including reasonable attorney fees and expert witness fees), judgments, settlements, and/or arbitration awards, whether for personal or bodily injury, property damage, or economic injury, and arising out of, related to, any concurrent or contributory negligence on the part of the Agency, except for the sole or active negligence of, or willful misconduct of the Agency.
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DEVELOPMENT PROJECT
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10. INSURANCE
Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit C attached to and part of this Agreement.
11. INDEPENDENT CONSULTANT
(a) Consultant is and shall at all times remain as to the Agency a wholly independent Consultant. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither Agency nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the Agency. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatever against Agency, or bind Agency in any manner.
(b) No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, Agency shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for Agency.
Agency shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder.
12. LEGAL RESPONSIBILITIES
The Consultant shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such laws and regulations. The Agency, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this Section.
13. UNDUE INFLUENCE
Consultant declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of the Agency in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement.
No officer or employee of the Agency will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, Packet Page 95
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in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity.
14. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES
No member, officer, or employee of Agency, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the Project during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the Project performed under this Agreement.
15. RELEASE OF INFORMATION/CONFLICTS OF INTEREST
(a) All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without Agency's prior written authorization. Consultant, its officers, employees, agents, or subconsultants, shall not without written authorization from the Agency Manager or unless requested by the Agency Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the Agency.
Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives Agency notice of such court order or subpoena. (b) Consultant shall promptly notify Agency should Consultant, its officers, employees, agents, or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, court order, or subpoena from any person or party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the Agency. Agency retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing, or similar proceeding. Consultant agrees to cooperate fully with Agency and to provide the opportunity to review any response to discovery requests provided by Consultant. However, Agency's right to review any such response does not imply or mean the right by Agency to control, direct, or rewrite said response.
16. NOTICES
Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Packet Page 96
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Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice:
To Agency: __City of Seaside__________
__440 Harcourt Ave________
__Seaside, CA 93955_______
Attention: City Clerk
To Consultant: Wallace Group
612 Clarion Court
San Luis Obispo, CA 939401
Attention: Kari E. Wagner. PE
17. ASSIGNMENT
The Consultant shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the Agency. Because of the personal nature of the services to be rendered pursuant to this Agreement, Zack Teske shall be the Project Manager and Engineer of Record for the services described in this Agreement.
Zack Teske may use assistants, under its direct supervision, to perform some of the services under this Agreement. Consultant shall provide Agency fourteen (14) days' notice prior to the departure of Zack Teske from Consultant's employ.
Should he/she leave Consultant's employ, the Agency shall have the option to immediately terminate this Agreement, within three (3) days of the close of said notice period. Upon termination of this Agreement, Consultant's sole compensation shall be payment for actual services performed up to, and including, the date of termination or as may be otherwise agreed to in writing between the Governing Board and the Consultant.
18. LICENSES
At all times during the term of this Agreement, Consultant shall have in full force and effect, all licenses required of it by law for the performance of the services described in this Agreement.
19. GOVERNING LAW
The Agency and Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties Packet Page 97
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to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior, or federal district court with jurisdiction over the Agency.
20. ENTIRE AGREEMENT
This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material.
21. WORK SCHEDULED/TIME OF COMPLETION
Consultant shall complete the outlined scope of work in a timely manner within the time frame per “Section 1. Term” of this contract.
22. CONTENTS OF REQUEST FOR PROPOSAL AND PROPOSAL
Consultant is bound by the contents of Agency's Request for Proposal, Exhibit D hereto and incorporated herein by this reference, and the contents of the proposal submitted by the Consultant, Exhibit A hereto. In the event of conflict, the requirements of Agency's Request for Proposals and this Agreement shall take precedence over those contained in the Consultant's proposals.
23. AUTHORITY TO EXECUTE THIS AGREEMENT
The person or persons executing this Agreement on behalf of Consultant warrants and represents that he/she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written.
CONSULTANT: __Wallace Group_______________
By: ______________________________ Date:_________________ Kari E. Wagner, Principal, PE 66026
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DEVELOPMENT PROJECT
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City of Seaside
A Municipal Corporation
______________________________ Date:_________________
Nicholas Borges, Acting City Manager
Attachments: Exhibit A Scope of Work/Consultant’s Proposal Exhibit B Fee Schedule
Exhibit C Insurance Requirements
Exhibit D Request for Engineering Services
Exhibit E Resolution 22-62 On-Call Engineering Services Packet Page 99
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DEVELOPMENT PROJECT
EXHIBIT A
EXHIBIT A
SCOPE OF WORK/CONSULTANT’S PROPOSAL
Packet Page 100
June 14, 2024 (Revision 2)
Nisha Patel, PE
City of Seaside
440 Harcourt Ave
Seaside, CA 93955
Subject: Construction Management and Inspection Services for Grand Hyatt Development Project
Dear Ms. Patel,
Wallace Group appreciates the opportunity to provide you with our proposal for construction management and inspection services for the Grand Hyatt Development Project. Based on our discussion, the following Scope of Services has been prepared for your consideration.
PROJECT UNDERSTANDING
The project includes the construction of new hotel and event center adjacent the Bayonett/Blackhorse Golf Course off McClure Way in the City of Seaside. The project will include the private development of the new hotel, but shared improvements will be performed to reconstruct McClure Way and reconstruct and expand the existing parking lot located at the golf course. As part of these improvements, new stormwater quality basins will be constructed on south of the structures. A new base rock access road will be constructed to provide access to the basins and other storm drain infrastructure.
Wallace Group will also be performing construction management and inspection services of the water and sewer infrastructure for this project on behalf of Marina Coast Water District. By providing a single point of contact for “public inspections” for the site improvement phase will provide a large efficiency to both agencies.
We have reviewed the following provided draft plans as part of our proposal:
1. Rough Grading Permit Set dated 02/22/24 by Rick Engineering
2. Precise Grading Permit Set dated 12/29/23 by Rick Engineering
3. Phase 1 Improvement Plans dated 3/1/24 by Rick Engineering
4. Phase II Improvement Plans – MCWD Utilities dated 01/02/24 by Rick Engineering Additional project documentation was provided for our review, which includes:
1. Soils Management Plan for Seaside Grand Hyatt by Sundt (no date)
2. Stormwater Pollution Prevention Plan (SWPPP) – Amendment #01 dated 6/12/2024 by Rick
3. Geotechnical Investigation Update by Haro, Kasunich, and Associates Inc dated May 2022
PROJECT TEAM
Jorge Avila is located in our Salinas office and will be the main assigned inspector. Zach Teske will serve as the main project manager and assist with scheduling, report preparation, and as-built reviews, and may serve as an alternate inspector as needed. Tony Scalise or Anthony Lehman may also serve as an alternate project manager or inspector. Please see below for additional detailed team member information.
Jorge Avila - Construction Inspector
Jorge has 20 years of experience in construction and specializes in underground construction. Jorge’s experience includes managing a broad range of projects with emphasis on installation of storm drain, sanitary sewer, and domestic/recycled water systems. Jorge’s prior field construction experience makes him a strong asset to his projects.
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City of Seaside – Grand Hyatt Development
PP24-8090
June 14, 2024
Zach Teske, PE, QSD/P – Project Manager
Zachary brings extensive experience in project management and civil engineering. Prior to joining Wallace Group, he worked in the heavy civil construction field where he spent time as a civil project engineer performing environmental compliance and constructing utilities and temporary roadway detours for a large bridge replacement project. He has also been the project manager on many roadway and utility infrastructure construction and planning projects. Zach has a demonstrated record of delivering projects from conception through completion and excels at managing and coordinating projects with many moving parts.
ANTHONY LEHMAN, QSD/P – Assistant Project Manager
Anthony Lehman is an Assistant Resident Engineer his background includes inspections, construction management, and design work in the field during construction. His experience includes inspecting public works projects, including but not limited to roadways, utilities, retaining walls, and other structures. Anthony has extensive experience working in the Monterey Bay Area, specifically in the City’s of Seaside and Marina.
Tony Scalise – Alternate Inspector / Project Manager
Tony Scalise brings over 35 years of construction experience to Wallace Group. Prior to joining our team, Tony has worked as an operating engineer and foreman on many public and private development projects. He specializes in horizontal construction including grading and excavation, roadway paving and rehabilitation, and underground utilities.
SCOPE OF WORK
Based on the provided plans, we have assumed the following scopes will need to be inspected and observed on behalf of the City as part of our scope of services. We have assumed all material testing will be performed by the Contractors 3rd Party Materials Testing Consultant:
Public Roadway + Parking Lot Improvements
For the new surface improvements, we will observe the construction to confirm the roadway grades and new construction, including review of the grading, concrete curb/gutter/v-gutter and flatwork, asphalt paving, and signage/striping. We will observe to ensure these are constructed in accordance with the project plans and specifications. Our observations will include the Phase 1 reconstruction of McClure Rd, the replacement of the golf course parking lot, and the construction of the North Parking Lot Rd and North Access Road.
We have assumed the base rock access road behind the hotel is private and will not be inspected under this contract.
Storm Drain Systems
For the new proposed storm drain systems, we will observe the construction to confirm the structures are constructed in accordance with the plans and specifications. The new storm drain systems will be located in the reconstructed parking lot and across a small portion of McClure Rd at General Jim Moore.
We have assumed other storm drain installations within the Staff Parking Lot and within the Hotel Area are private and will not be inspected under this contract.
Packet Page 102
City of Seaside – Grand Hyatt Development
PP24-8090
June 14, 2024
Detention/Water Quality Basins
For the new proposed stormwater basins, we will observe the construction and verify the basins have been constructed according to plan (correct elevations/volume) and in accordance with the project drainage report. Four basins exist on the south side of new proposed hotel site and one basin is located to the south of the new staff parking lot. These basins will be constructed in accordance with Detail 17 on Sheet C35 and the elevations shown in the Bioretention Basin Table on Sheet C35.
We will also review the bioretention or rain garden sections within the hotel limits and will be inspected to confirm compliance with the approved Drainage Management Plan/Post-Construction Requirements.
Soil Management Plan + Site Grading
The project will require the import of approximately 50,000 cubic yards of soil material. We will observe the import and grading of this material to verify that the Contractors means and methods are in accordance with the project Geotechnical Report and Soil Management Plan. Following completion of this work, we will make a recommendation to the City on the acceptance of the fill, including a review of the summary geotechnical testing report provided the Contractors 3rd party testing firm.
Stormwater Pollution Prevention (SWPPP) Verification
Stormwater inspections and reporting will be performed by a QSP from Whitson Engineers. As part of our on-site observations, we will perform review of the inspection reports provided by the QSP and document any failures to remedy by the Contractor in our Inspector Daily Log reports. Note, our review of the project stormwater protection measures will be ancillary only to ensure general compliance with the project SWPPP and City Issued Engineering/Building Permit.
Task 1: Pre-Construction Phase Services
Project Communication and Coordination
• Facilitate project communication and coordination with the City, the design team, and the Contractor
• Attend kick off meeting with the City to introduce project team members, establish working relationships, and discuss key project components Procore: Construction Management Software
• Utilize Procore software for the project to handle all project documentation (RFIs, Submittals, Inspector Logs, Progress Payments, Photos, etc.) in a single, easy to use location
• Provide introduction to City staff if unfamiliar with the software • Distribute project information via Procore to the Project Team Pre-Construction Meeting
• Thoroughly review plans, specifications, environmental documents, Engineer’s Estimate, and the Contractor’s completed bid form
• Pre-Construction Conference – Attend pre-construction meeting on behalf of the City to review project with Developer and Contractors
• Review Contractor’s baseline project schedule
• Review existing conditions and site constraints
Pre-Construction Photo and Video Documentation
• Collect pre-construction photos and videos of project site and adjacent areas just prior to the start of construction
• Each photo will record the date and time
• Photos will be collected and maintained in Procore, available to the project team throughout construction, and included in the project close out documentation Packet Page 103
City of Seaside – Grand Hyatt Development
PP24-8090
June 14, 2024
Submittal and Request for Information (RFI) Management
• Track and review submittals and RFI’s from Contractor in coordination with the City • Assist contractor and design engineer in establishment of list of required submittals based on the plans and specifications
• Process RFIs and submittals in a timely manner and make available to project team • Develop and maintain Submittal and RFI logs for easy reference and tracking to assure Task 2: Construction Phase
In the absence of a defined construction schedule from the developer, we have assumed approximately 180 working days for the construction period. We have assumed an average of 4 hours/day of field construction inspection time and 5 hours/week for project management. Note, our time will be dependent on construction activity and adjusted as required, with any unused project budget returned to the City.
Project Schedule & Weekly Construction Meeting
• Review Contractors 3-Week Look Ahead Schedule and assist with forecasting and coordinate scheduling inspections
• Attend Weekly Progress Meetings as scheduled by Developer, Contractor, Design Team, and other necessary entities
Quantity Calculations
• Maintain quantity calculations throughout the project • Photo documentation of delivery and materials tickets for project record Construction Observation
• Provide onsite observation and oversight during construction, hours/level of inspection to depend on construction activity phase
• Prepare inspection reports, including tracking labor, equipment, weather, observations/notes, quantities, and photos. Daily reports to be made available to the City’s Designated Representative via Procore or in PDF format • Wallace Group Inspections and oversight include:
o Golf Course/Hotel Parking Lot Construction
o McClure Way Reconstruction
o Storm Drain System + Drainage Basins
o Site Grading + Soil Import
o Materials and Material Delivery
• Assist with coordination of the following:
o Contractors material testing consultant
o City Staff for select inspection items as requested
• Report to the City when work is performed that is unsatisfactory, faulty, or does not conform to the Contract documents and advise on how the work should be remedied • Inspector will help to coordinate notification of local agencies or other City Departments • Review compliance with contract documents
• Record and report design modifications
• Review Contractor’s survey work and layout for general conformance Site Documentation
• Maintain photographic and written documentation throughout the project in Procore and available to the entire team at all times
Stormwater Compliance and Permits
• Monitor stormwater protection measures throughout the project to assure Contractors general compliance with the Contract and SWPPP
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City of Seaside – Grand Hyatt Development
PP24-8090
June 14, 2024
Task 3: Post-Construction Phase Services
Final Inspection and Punch List
• Observe complete and near complete work for deficiencies • Establish and maintain punch list and track items to resolution • Assist with the preparation and signing of the Acknowledgement of Construction Closeout and Release of Claims form
• Prepare Recommendation to Accept Work and send to City’s Designated Representative As-Built Drawings
• Review as-built drawings with the Contractor throughout the project Assist City and Design Engineer in review and completion of final certified record drawings
Project Closeout
• Assemble and deliver all records, reports, certificates, pictures upon project completion • Files can be delivered in hard copy and/or electronic format (PDF), as requested
TO BE PROVIDED BY THE CLIENT
Client shall provide the DIR Project Number for this project. To do so, the Client will need to complete the PWC-100 form and submit to the DIR prior to the commencement of the field survey. This is required to be in compliance with State of California Prevailing Wage laws.
ITEMS NOT INCLUDED IN SCOPE OF SERVICES
Only services and deliverables specifically detailed and listed are to be considered as included in this proposal. Project schedule extensions and requests for additional mobilizations may require additional work authorization. Wallace Group can provide additional project management and inspection support for this project depending on need from the City. Additional services could include:
• Survey
• Materials Testing
• Labor Compliance
PROJECT BUDGET
Our time and material budget will not exceed $193,734 without receiving written authorization from the City. Wallace Group’s required level of effort will be largely dependent upon the Contractor, their schedule, and their efficiency in completing the scope of work. Wallace Group will perform the services denoted in Scope of Services in accordance with the attached Standard Billing Rates (Exhibit B). These services will be invoiced monthly and invoices will be formatted to match the formatting style contained within this budget proposal. Reimbursables are included in the time and materials estimated budget amount stated above.
The estimated fees denoted above are based on prevailing wage rates. If the Client and the California Department of Labor determines that prevailing wage payments are not required, our budget for the tasks above will be adjusted and billed according to the per hour rate of the Standard Wage column on the Standard Billing Rates provided.
TERMS AND CONDITIONS
In order to convey a clear understanding of the matters related to our mutual responsibilities regarding this proposal, our master services agreement is considered a part of our proposal agreement. If this proposal meets with your approval, please sign where indicated and return to our office, which will serve as our notice-to-proceed.
Packet Page 105
City of Seaside – Grand Hyatt Development
PP24-8090
June 14, 2024
We want to thank you for this opportunity to present our proposal for construction management services. If you would like to discuss this proposal in greater detail, please feel free to contact Zach Teske at [email protected] or at 831-226-9132.
Sincerely,
WALLACE GROUP, a California Corporation TERMS AND CONDITIONS ACCEPTED:
Kari Wagner ____________________________________
Principal Signature
612 Clarion Court ____________________________________
San Luis Obispo Printed Name
California 93401 ____________________________________
T 805 544-4011 Title
F 805 544-4294 ____________________________________
www.wallacegroup.us Date
Attachments
Exhibit A – Budget Estimate
Exhibit B – 2024 Standard Billing Rates
THIS PROPOSAL IS VALID FOR 60 DAYS FROM THE DATE OF THIS DOCUMENT Packet Page 106
EXHIBIT B
FEE SCHEDULE
Packet Page 107
Wallace Group Team Resource Estimate for the
City of Seaside - Grand Hyatt CM & Inspection Director of Construction Management (Zach Teske, PE) ASSISTANT RESIDENT ENGINEER II(Jorge Avila) PREVAILING WAGE CONSTRUCTION INSPECTOR (Jorge Avila) Misc. Direct Costs TOTAL LABOR HOURS
TOTAL
TASK DESCRIPTION HRS HRS HRS Cost Cost HRS LABOR COST
RATE $220 $170 $180 $ $
1 Pre-Construction 24 40 $402 64 $12,080 $12,482
2 Construction 180 720 $3,618 900 $169,200 $172,818
3 Post-Construction 16 24 $201 40 7600 $7,801
SUB-TOTALS 220 64 720 $4,221 1,004 #REF! $193,101
WALLACE GROUP LABOR COSTS $48,400 $10,880 $129,600 $188,880 WALLACE GROUP DIRECT COSTS $4,221
SUBCONSULTANT DIRECT COSTS
DIRECT COSTS OVERHEAD @ 15% $633
TOTAL $193,734
Task Budgets may fluctuate within Overall Budget PHASE/TASK PP24-8090 Budget Sheet - Seaside - Grand Hyatt Summary Page 1 6/14/2024 Packet Page 108
Exhibit A
Standard Billing Rates
Construction Management / Field Inspection Services:
Construction Inspector I - II ............................................ $140/$155 Senior Construction Inspector ......................................... $160 Construction Inspector (*Prevailing Wage) .......................... $180 Construction Office Tech I-III .......................................... $115/$125/$135 Assistant Resident Engineer I - II...................................... $165/$170 Resident Engineer I - III ................................................ $175/$180/$185 Senior Resident Engineer .............................................. $195 Director .................................................................. $220 Principal Construction Manager ....................................... $245 Principal .................................................................. $270 Public Works Administration Services:
Project Analyst I - IV ................................................... $120/$130/$140/$150 Senior Project Analyst I - III ........................................... $155/$160/$165 Senior Environmental Compliance Specialist I - III ................. $170/$175/$185 Support Services:
Office Assistant ......................................................... $110 Project Assistant I – III .................................................. $120/$125/$135 *Prevailing Wage:
State established prevailing wage rates will apply to some services based on state law, prevailing wage rates are subject to change over time and geographic location.
Right to Revisions:
Wallace Group reserves the right to revise our standard billing rates on an annual basis, personnel classifications may be added as necessary.
Additional Professional Services:
Fees for expert witness preparation, testimony, court appearances, or depositions will be billed at the rate of $400 an hour. If required to meet schedule requests, overtime on a project will be billed at 1.5 times the employee’s typical hourly rate.
Direct Expenses:
Direct expenses will be invoiced to the client and a handling charge of 15% may be added.
Sample direct expenses include, but are not limited to the following:
• travel expenses • sub-consultant services • agency fees • delivery/copy services • mileage (per IRS rates) • other direct expenses Invoicing and Interest Charges:
Invoices are submitted monthly on an accrued cost basis. A finance charge of 1.5% per month may be assessed on all balances that are thirty days past due.
WALLACE GROUP
2024 Standard Billing Rates
Packet Page 109
EXHIBIT C
INSURANCE REQUIREMENTS
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DEVELOPMENT PROJECT
EXHIBIT C
EXHIBIT C
INSURANCE REQUIREMENTS
Without limiting Consultant’s indemnification of Agency, and prior to commencement of Work, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to Agency.
Note: Verify minimum limit for each coverage with Risk Manager.
General liability insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
Automobile liability insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
Professional liability (errors & omissions) insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement.
Note: May need to delete workers' compensation and employer's liability insurance requirements for certain sole proprietorships, partnerships, or corporations without employees.
Workers’ compensation insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).
Consultant shall submit to Agency, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of Agency, its officers, agents, employees and volunteers.
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CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR GRAND HYATT
DEVELOPMENT PROJECT
EXHIBIT C
Note: If the required limits for general liability, auto and employer’s liability are $1 million or less, the following paragraph may be omitted.
Umbrella or excess liability insurance. [Optional depending on limits required].
Consultant shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:
• A drop down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason;
• Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; • Policies shall “follow form” to the underlying primary policies; and • Insureds under primary policies shall also be insureds under the umbrella or excess policies.
Other provisions or requirements
Proof of insurance. Consultant shall provide certificates of insurance to Agency as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by Agency’s Risk Manager prior to commencement of performance.
Current certification of insurance shall be kept on file with Agency at all times during the term of this contract. Agency reserves the right to require complete, certified copies of all required insurance policies, at any time.
Duration of coverage. Consultant shall procure and maintain for the duration of the contract 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 Consultant, his agents, representatives, employees or subconsultants.
Primary/noncontributing. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by Agency shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of Agency before the Agency’s own insurance or self-insurance shall be called upon to protect it as a named insured.
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CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR GRAND HYATT
DEVELOPMENT PROJECT
EXHIBIT C
Agency’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, Agency has the right but not the duty to obtain the insurance it deems necessary and any premium paid by Agency will be promptly reimbursed by Consultant or Agency will withhold amounts sufficient to pay premium from Consultant payments.
In the alternative, Agency may cancel this Agreement.
Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the Agency’s Risk Manager.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against Agency, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against Agency, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
Enforcement of contract provisions (non estoppel). Consultant acknowledges and agrees that any actual or alleged failure on the part of the Agency to inform Consultant of non-compliance with any requirement imposes no additional obligations on the Agency nor does it waive any rights hereunder.
Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the Agency requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Agency.
Notice of cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide to Agency with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
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CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR GRAND HYATT
DEVELOPMENT PROJECT
EXHIBIT C
Additional insured status. General liability policies shall provide or be endorsed to provide that Agency and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.
Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to Agency and approved of in writing.
Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.
Pass through clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to Agency for review.
Agency’s right to revise specifications. The Agency reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the Agency and Consultant may renegotiate Consultant’s compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by Agency. Agency reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by Agency.
Timely notice of claims. Consultant shall give Agency prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this AGREEMENT, and that involve or may involve coverage under any of the required liability policies.
Additional insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.
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EXHIBIT D
REQUEST FOR ENGINEERING SERVICES
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REQUEST FOR QUALIFICATIONS
ON-CALL CONSULTANTS - ENGINEERING
FOR CITY OF SEASIDE
Table of Contents
Introduction............................................................................................................................................................ 1 Proposal Requirements........................................................................................................................................... 1 Statement of Qualifications Submittal Requirements........................................................................................... 2 Schedule for Selection Process ............................................................................................................................... 2 Questions Regarding This Project ........................................................................................................................... 3 Form of Agreement ................................................................................................................................................ 3 Evaluation and Rating Criteria................................................................................................................................ 3 PRELIMINARY SCOPE OF SERVICES............................................................................................................... 3 General Provisions ................................................................................................................................................. 4 Non-Discrimination & Non-Preferential Treatment ............................................................................................. 6 Grounds for Disqualification............................................................................................................................... 6 Records and Financial Data ................................................................................................................................ 6 Introduction
The City of Seaside (City) seeks Request for Qualifications (RFQs) from qualified consulting firms or individuals to provide On-Call Engineering Services for miscellaneous undetermined projects.
The selected engineering firms may be requested to help with the design of federal, state and locally funded capital improvement projects. The City intends to select multiple consultants for a three-year period, with the option of two (2) one-year extensions through mutual consent between the City and the chosen Consultant(s). Consultants do not need to be able to provide all services described in the “Preliminary Scope of Services,” below. Selection will be based on demonstrated expertise in providing support to the City of Seaside Public Works and Engineering Department.
Proposal Requirements
Statement of Qualifications (SOQ) must be received by 5:00 PM Friday, April 22, 2022 at the following address:
City of Seaside
440 Harcourt Avenue
Seaside, CA 93955
SOQ received after this deadline will not be accepted. Incomplete responses that do not conform to the requirements specified herein will not be considered. The SOQ and any accompanying documents shall be submitted in a sealed envelope with the words “On-Call ConsultantsEngineering” clearly marked in the lower left-hand corner of the envelope. Three bound copies, plus one electronic copy submitted on CD, USB flash drive, or by email to [email protected], containing an Adobe pdf copy, should be submitted.
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City of Seaside-Statement of Qualifications
On-Call Consultants - Engineering
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The SOQ should include the following information:
1. Name of proposer and principal contact person, including office location, address, telephone number, fax numbers and e-mail address.
2. Brief description and history of the proposed project team and experience of the principal contact. Clearly describe project team member’s experience in work described under “Preliminary Scope of Services". Describe the average project size and scope of the team member’s past projects.
3. Provide as exhibits, listings of your firm’s and its principals’ and project teams experience demonstrating their capabilities and qualifications to perform the assigned task as described in the “Preliminary Scope of Services”. For each individual, provide current professional registrations, related experience, educational background and years of experience with the team.
4. Enclosed is a copy of the City’s standard contract, which stipulates, among other things, insurance requirements. Please confirm that the project team can accept the terms of the contract and has the required insurance, or can acquire insurance, that meets the minimum standards.
5. Please provide at least three professional references. Indicate which references are public agencies for which the project team, or its principals, have provided services for within the past five years.
6. Standard Hourly Fees: Provide your standard hourly fees by job classification and billing criteria for providing the services described in this RFQ in a separate sealed envelope. Do not provide in the response to this request as an exhibit or in the body of the response The SOQ will be limited to 10 numbered pages including title sheet and cover letter if provided.
Minimum font size is 12. Page size is limited to letter size with no fold-outs. Submittals must be printed on both sides of the paper. A clear front and back cover shall be provided and the front and back clear cover will not count towards the 10 page limit.
Schedule for Selection Process
The proposed consultant selection schedule is as follows.
Release RFQ
Questions Due
Thursday, March 24, 2022
Friday, April 8, 2022
Proposal due
Proposal Ranking
Friday, April 22, 2022
April 24, 2022 – May 20, 2022
Consultant Award (if applicable) Friday, May 27, 2022
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City of Seaside-Statement of Qualifications
On-Call Consultants - Engineering
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All questions and/or contacts regarding this Request should be directed to:
Patrick Grogan
City of Seaside-Engineering Division
440 Harcourt Avenue
Seaside, CA 93955
E-mail: [email protected] or [email protected] Phone (831) 899-6885
Form of Agreement
A copy of the City of Seaside Consultant Contract is included herewith.
Evaluation and Rating Criteria
City staff will review each SOQ for completeness and content. Each SOQ will be evaluated based upon the relevant qualifications and experience of the consultant. Consultants do not need to be able to provide all services described in the “Preliminary Scope of Services,” below. Staff may conduct interviews if necessary. References may also be verified. The SOQ review will focus upon the following criteria:
1. Experience and demonstrated ability of the team. – 25 points
2. Appropriate relevant experience and skills of personnel (principals, project managers and other key personnel). – 30 points
3. Prime consultant and sub-consultants experience in providing similar projects. – 15 points
4. Client References. – 10 points
5. Overall quality of the response and conformance with SOQ requirements for content (reference Proposal and Submittal Requirements). – 20 points
SOQs will be ranked on the basis of qualifications. The City of Seaside may conduct interviews with some or all of the firms/individuals who submit proposals, or it may complete its evaluation based on the proposals alone. If interviews are conducted, firms/individuals selected for interview will be contacted at that time to arrange the date and time for their interview.
PRELIMINARY SCOPE OF SERVICES
Consultant is required to provide engineering design and professional services for various projects to be implemented throughout the City. The scope of work under this contract may include but not be limited to the following:
A. Engineering Services
Design, Survey and Geometrics
Pavement Evaluation, Design and Testing
Pavement Management Program Evaluation and Report
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City of Seaside-Statement of Qualifications
On-Call Consultants - Engineering
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Structural Analysis and Design
Well Design and Rehabilitation
Water System Design and Rehabilitation
Storm Drain System Design and Rehabilitation
Value Engineering
Seismic Evaluations
Construction Phase Services
B. Professional Services
Disabled Accessibility Evaluations and Mitigation
Preliminary Engineering Studies
Technical Studies and Reports
Peer Reviews
Coordination with Other Agencies and Utilities
Constructability and Bidability Reviews
On-Call Services
Staff Augmentation
All materials submitted to the City will become the exclusive property of the City of Seaside.
The consultant will not be allowed to provide services when the City determines a potential conflict of interest may exist.
Consultant services will be on an as-needed, on-call basis. Consultant services will be authorized by separate contract(s). The Consultant is responsible for acknowledging receipt of requests for services within two (2) working days. Contracts may vary significantly in size and scope and will be determined in greater detail as each is assigned. The Consultant will be responsible for preparing a detailed scope and fee estimate for each contract request and shall identify the number of hours to be worked and position of each person performing work on a particular proposal. If during actual work the number of hours is increased by more than 20% of the estimate, the consultant shall notify the Project Manager as soon as possible before exceeding the estimated time. The City may elect to reduce the scope of work or may require a revised scope of work to cover the excess time. Work authorization will be issued for each work request. The City shall authorize all consultant quotes for tasks prior to the consultant commencing work. The City may accept the Consultant’s scope and fee or negotiate with the Consultant, as appropriate. The City reserves the right to not accept the Consultant’s scope and fee.
General Provisions
1. The City will assume no responsibility for any understandings or representations concerning conditions made by any of its officers or employees prior to execution of a final agreement unless they are included in this Request for Qualifications.
2. Any reasonable inquiry to determine the responsibility of a prospective Consultant(s) may be conducted. The submission of Qualifications shall constitute permission by the Packet Page 119
City of Seaside-Statement of Qualifications
On-Call Consultants - Engineering
J:\08_PUBLIC WORKS\Personnel\Engineering Services\EngSrvcs_2022 (with PMP)\RFQ\RFQ_Eng Srv with PMP.docx - 5 - prospective Consultant(s) for the City to verify all information contained therein. If the City deems it necessary, additional information may be requested from the prospective Consultant(s) for further consideration.
3. A prospective Consultant(s) may withdraw their Qualifications at any time prior to the date and time which is set forth herein as the deadline for acceptance of Qualifications.
4. Each prospective Consultant(s) submitting Qualifications in response to this Request agrees the preparation of all materials for submittal to the City and all presentations are at the prospective entities sole cost and expense, and the City will not, under any circumstances, be responsible for any costs or expenses incurred by a prospective Consultant(s). In addition, each prospective Consultant(s) agrees that all documentation and materials submitted with Qualifications will remain the property of the City and will become a public document.
5. The City reserves the right to request additional information from any and all prospective entities as deemed necessary by the City in order to evaluate the Qualifications. This process may not be used as an opportunity to submit missing documentation or to make substantive revisions to the original Qualifications.
6. The City reserves the right to reject any and all Qualifications and, in the event the Consultant selected, it may attempt to negotiate an agreement with the Consultant that, in the sole judgment of the City, is the best qualified to provide the services requested.
7. The City shall not enter into an agreement with any prospective Consultant(s) that has previously had an agreement with the City terminated, or that has previously been found to have violated any provision of the Seaside City Code, or related resolutions or ordinances, or any provision of federal law, state, or other local law.
8. The City reserves the right to enter into an agreement with an Consultant(s) at any time, deviate from this Request, reject any or all SOQs, continue to advertise for new Qualifications, negotiate with multiple entities simultaneously, waive any defects in Qualifications, or to proceed otherwise. The Request and the selection process will in no way be deemed to create a binding contract or agreement of any kind between the City and any prospective Consultant(s). The submission of Qualifications does not in any way commit the City to enter into an agreement with any prospective Consultant(s).
9. Each prospective Consultant(s) shall agree to abide by all federal, state, and local laws, rules, and regulations and to secure all necessary licenses, permits, and other forms of identification as may be required in connection with the resulting agreement, all at no additional cost to the City.
10. All Qualifications, charge rates or representations will remain in effect and be legally binding for at least one hundred twenty (120) days from the date of submission.
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City of Seaside-Statement of Qualifications
On-Call Consultants - Engineering
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11. This Request for Qualifications shall be governed in accordance with the laws of the State of California and the jurisdiction of any disputes hereunder shall be had in Monterey County.
Non-Discrimination & Non-Preferential Treatment
The successful Consultant shall not discriminate, in any way, against any person on the basis of race, sex, color, age, religion, sexual orientation, actual or perceived gender identity, disability, ethnicity, or national origin, in connection with or related to the performance of City of Seaside contracts.
Grounds for Disqualification
All prospective entities are expected to conduct themselves with the utmost integrity and responsibility throughout the Request process. Any prospective Consultant(s) that violates these expectations, as determined in the sole discretion of the City, will be subject to disqualification.
Generally, the grounds for disqualification include:
1. Contact regarding this procurement with any City official or employee, other than the contact person designated in this Request, from the time of issuance of this Request until the consideration and approval of a professional services agreement.
2. Evidence of collusion, directly or indirectly, among prospective entities in regard to the amount, or the terms and conditions of this Request and the prospective agreement.
3. Influencing, or attempting to influence, any City staff member or official throughout the solicitation process, including the development of specifications beyond those included here, if any.
4. Evidence of submitting incorrect or inaccurate information in response to this Request or misrepresentation or failing to disclose facts during the evaluation or negotiation process.
5. Existence of any lawsuit, claim, or dispute between the prospective Consultant(s) and the City.
6. Evidence of the prospective Consultant(s)’s inability to successfully complete the responsibilities and obligations of the Request process.
7. The prospective Consultant(s)’s default under any City agreement or termination of a previous agreement.
Records and Financial Data
All correspondence with the City, including responses to this Request, will become the exclusive property of the City and will become public records under the California Public Records Act. All documents submitted in response to this Request will be subject to disclosure if requested by a member of the public. There are a very limited number of narrow exceptions to this disclosure requirement.
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City of Seaside-Statement of Qualifications
On-Call Consultants - Engineering
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If an Consultant(s) is selected, the City may retain any submitted information and disclose it to the City Council, and any subcommittees thereof, and the public in connection with consideration of an agreement with the City as evidence of the entities ability to carry out the development. Given the nature of the applicable law under the California Public Records Act, the City cannot guarantee or warrant that it will be able to keep submitted information, including personal financial records, confidential. The successful Consultant(s) agrees to indemnify, defend, and hold the City harmless from and against any suit brought under the California Public Records Act to obtain the records; otherwise, the City shall not be obligated to defend such suit and may release the records.
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EXHIBIT E
RESOLUTION 22-62 On-Call Engineering Services
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CITY OF SEASIDE
STAFF REPORT
Item No.: 9.A.
TO: City Council
FROM: Nicholas Borges, Acting City Manager
BY: Andrew Myrick, Economic Development & Community Planning Manager DATE: June 20, 2024
SUBJECT: ZONING MAP AMENDMENT TO CHANGE THE ZONING OF 1020 AUTO CENTER PARKWAY (APN: 011-523-021) FROM
AUTOMOTIVE REGIONAL COMMERCIAL (CA) TO REGIONAL
COMMERCIAL (CRG). THE PROJECT IS CATEGORICALLY
EXEMPT (CLASS 32) FROM THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT (CEQA) PURSUANT TO SECTION 15332 OF THE
CEQA GUIDELINES (SECOND READING)
RECOMMENDATION
Approve ZMA-24-01 to change the Zoning of 1020 Auto Center Parkway from Automotive Regional Commercial (CA) to Regional Commercial (CRG)
BACKGROUND
1020 Auto Center Parkway (Monterey County Assessor's Parcel Number 011-523-021) (hereafter referred to as the "Property") is an approximately 0.61 acre parcel located at the corner of Del Monte Boulevard and La Salle Avenue. The site includes an existing building and a parking lot (although a portion of the parking lot is located on the adjoining property to the east).
The Property is located within the Automotive Regional Commercial (CA) Zoning District. The properties located immediately across Del Monte Blvd as well as the adjacent property located south of the Property are also located in the CA Zoning District, and are occupied by vehicle sales and repair uses. In contrast, the properties located across La Salle Avenue, as well as the adjacent property located east of the Property, are located in the Regional Commercial (CRG) Zoning District and are occupied by motels and a restaurant. The Property and all surrounding properties are located within the Employment land use designation in the current General Plan Packet Page 127
Item No. 9.A. Page 2 of 2
(adopted May 16, 2024), and were located in the Regional Commercial land use designation under the previous General Plan adopted in 2004.
The Property was previously occupied by Monterey Peninsula Power Sports, which sold motorcycles and All-Terrain Vehicles (ATVs). The Property is currently vacant. The CA Zoning District is highly restrictive, allowing only the sale, rental, or repair of automobiles and similar automotive-related uses. General retail uses are not permitted.
The applicant, Jason Zaremba, has an option to purchase the property and desires to change it into an Ace Hardware store. He has submitted an application to change the zoning of the property from CA to CRG. A hardware store would be a Permitted use in the CRG zoning district.
Staff believes that the proposed Zoning Map Amendment is appropriate. Staff notes that the Property sits on the boundary of the CA and CRG districts (see Attachment 2).
Therefore, changing the Zoning would not result in any uses incompatible with the surrounding area. Further, both Zoning Districts would be consistent with the current and previous General Plan, which envision both automotive and non-automotive commercial uses.
On May 29, 2024, the Planning Commission held a Special Meeting to consider this item. The Planning Commission unanimously recommended that the City Council approve the proposed Zoning Map Amendment. The Ordinance was introduced at the June 6, 2024 meeting of the City Council.
FISCAL IMPACT
This item is not expected to have any fiscal impact.
ATTACHMENTS
1. Attachment 1 Draft Ordinance Zoning Map
2. Attachment 2 Proposed Zoning Map Amendment
Reviewed for Submission to the City Council by:
________________________________________
Nicholas Borges, Acting City Manager
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1 ORDINANCE NO. _________
AN ORDINANCE OF THE CITY OF SEASIDE APPROVING A ZONING MAP AMENDMENT TO CHANGE THE ZONING OF 1020 AUTO CENTER PARKWAY (ASSESSOR’S PARCEL NUMBER 011-523-021-000) FROM AUTOMOTIVE
REGIONAL COMMERCIAL (CA) TO REGIONAL COMMERCIAL (CRG)
WHEREAS, Monterey County Assessor’s Parcel Number (APN) 011-523-021-000, also known as 1020 Auto Center Parkway, is a parcel of land approximately 0.61 acres in size located at the northwest corner of Del Monte Boulevard and La Salle Avenue (hereafter referred to as the “Property”); and
WHEREAS, the Property is presently identified in the Seaside General Plan, adopted May 16, 2024, as being within the Employment land use designation, and is identified in the Zoning Map as being within the Automotive Regional Commercial (CA) Zoning District; and
WHEREAS, Jason Zaremba has submitted an application for a Zoning Map Amendment to change the Zoning District from the CA District to the Regional Commercial (CRG) Zoning District; and
WHEREAS, the Property is located immediately adjacent to and directly across the street from other parcels located in the CRG Zoning District, and therefore would be compatible with the surrounding uses; and
WHEREAS, both the CA and CRG Zoning Districts are consistent with the current Employment land use designation; and
WHEREAS, the Zoning Map Amendment is Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15332 (In-Fill Development Projects) of the CEQA Guidelines; and
WHEREAS, on May 29, 2024, the Seaside Planning Commission reviewed the proposed Zoning Map Amendment and recommended that the City Council approve the proposed amendment.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SEASIDE:
SECTION 1. The City Council hereby finds and determines the foregoing recitals, which are incorporated herein by reference, are true and correct.
SECTION 2. The Seaside Zoning Map is hereby amended to change the Zoning District of the Property from Automotive Regional Commercial (CA) to Regional Commercial (CRG).
SECTION 3. The City Council hereby finds the proposed Zoning Map Amendment Categorically Exempt from CEQA pursuant to Section 15332 of the CEQA Guidelines (InFill Development Projects).
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2 SECTION 4. If any provision, section, paragraph, sentence, clause or phrase of this Ordinance, or any part thereof, or the application thereof to any person or circumstance is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance, or any part thereof, or its application to other persons or circumstances. The City Council hereby declares that it would have passed and adopted each provision, section, paragraph, subparagraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, paragraphs, subparagraphs, sentences, clauses or phrases, or the application thereof to any person or circumstance, be declared invalid or unconstitutional.
SECTION 5. This Ordinance shall become effective thirty days following adoption.
INTRODUCED at a regular meeting of the City Council of the City of Seaside, State of California, held on the 6th day of June 2024.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Seaside, State of California, held on the 20th day of June 2024 by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
APPROVED:
Ian N. Oglesby, Mayor
ATTEST:
Dominique L. Davis, City Clerk
APPROVED AS TO FORM:
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3 Sheri L. Damon,
City Attorney
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Zoning Map Amendment ZMA-24-01
Existing Zoning Districts and Proposed Change
Sand City
Commercial
Mixed Use
(CMX)
Automotive
Regional
Commercial (CA)
Regional
Commercial (CRG)
Change from
CA to CRG
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CITY OF SEASIDE
STAFF REPORT
Item No.: 10.A.
TO: City Council
FROM: Nicholas Borges, Acting City Manager
BY: Beth Rocha, Senior Planner
Andrew Myrick, Economic Development & Community Planning Manager DATE: June 20, 2024
SUBJECT: CONSIDER THE ADOPTION OF A RESOLUTION APPROVING A DEVELOPMENT/OPERATING AGREEMENT FOR CCSEA, LLC.,
DBA CANNACRUZ, A CANNABIS DISPENSARY AT 680
BROADWAY AVENUE
RECOMMENDATION
Consider adoption of a Resolution approving a Development/Operating Agreement between the City of Seaside and CCSEA, LLC., DBA CANNACRUZ, governing the operations and community benefit requirements for an Adult Use and Medical Cannabis Dispensary located at 680 Broadway Avenue.
BACKGROUND
On December 28, 2017 the City Council approved a Use Permit for Medical/Adult Recreational Cannabis to Cannatopia LLC (operating under the business name Urbn Leaf) at 680 Broadway Avenue. In addition to the requirement that cannabis dispensaries have a valid Use Permit, the Municipal Code requires that they must also enter into a Development/Operating Agreement with the City of Seaside. The Agreement governs the operations of the dispensary and other elements of the application, and provide the City with a vital enforcement tool should a dispensary not comply with their Community Benefit and Investment Plan and to close a dispensary that violates the terms of this agreement or of the Use Permit. A Development/Operating Agreement with Cannatopia LLC was approved by the City Council on March 15, 2018. Urbn Leaf closed in August of 2023, leaving the site vacant.
On February 28, 2024, the City received an application for a new cannabis business Packet Page 133
Item No. 10.A. Page 2 of 3
(operating under the business name Canna Cruz). Canna Cruz currently operates dispensaries in Santa Cruz and Salinas. At this time, the Use Permit (which is a land use entitlement/permit) on the property is still in force, meaning that a dispensary has the necessary permits to operate at the location. However, all dispensaries are also required to enter into a Development/Operating Agreement, which is a contract between the City and the business specifying how the business will operate. It also provides an outline for and a commitment to comply with the business's Community Benefits Plan.
In accordance with Council Resolution No. 22-15 (Attachment 2), which sets forth cannabis dispensary selection criteria, Phase I: Determination of Eligibility was verified by staff on April 10, 2024. Phase II: Evaluation and Review was reviewed by two City employees; this review resulted in a score beyond the minimum of 90% with a 92% or 2,300 points out of 2,500 possible points (Attachment 3), qualifying the application as eligible to move forward to Phase III: Selection. Staff shared the scoring with the applicant, noting the lowest score received was the Community Benefit and Investment Plan, with 200 out of 400 possible points. The applicant agreed to meet with staff to discuss their current proposal, then submitted a revised Community Benefit and Investment Plan with strengthened language regarding working, hiring, and collaborating with people and businesses in the city of Seaside. Phase III: Selection involves the applicant providing a brief presentation to the Council and answering questions of the Council.
If Council approves this Agreement, this dispensary would have all of its approvals and would be allowed to open for operation as soon as any desired tenant improvements to the building are complete and any necessary inspections are complete. Inspections will include an inspection of the security plan by the Police Chief or designee, and of the safety plan by the Fire Chief or designee.
FISCAL IMPACT
Adopting this agreement will allow the dispensary to open, which should result in revenues to the City of Seaside, plus local hiring practices.
ATTACHMENTS
1. Attachment 1: Draft Resolution
2. Exhibit A to Attachment 1: Draft Development Operating Agreement
3. Exhibit A to Draft Development Operating Agreement: Location Map
4. Exhibit B to Draft Development Operating Agreement: Resolution 17-100 Cannabis Use Permit
5. Exhibit C to Draft Development Operating Agreement: Labor Equity Diversity and Inclusion
6. Exhibit D to Draft Development Operating Agreement: Community Benefits and Packet Page 134
Item No. 10.A. Page 3 of 3
Investment Plan
7. Attachment 2: Resolution 22-15
8. Attachment 3: Scores
9. Attachment 4: Complete CannaCruz Submittal
Reviewed for Submission to the City Council by:
________________________________________
Nicholas Borges, Acting City Manager
Packet Page 135
RESOLUTION NO. 24-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASIDE
APPROVING A DEVELOPMENT/OPERATING AGREEMENT BETWEEN
THE CITY OF SEASIDE AND CCSEA, LLC., DBA CANNACRUZ, TO GOVERN
OPERATIONS AND COMMUNITY BENEFITS FOR A CANNABIS
DISPENSARY
WHEREAS, the City of Seaside has taken steps to establish regulated cannabis activities in the City subject to an application process that includes a ranking process; and
WHEREAS, the ordinance governing Cannabis Related Uses requires that all operators of dispensaries must obtain a Use Permit and also enter into a Development/Operating Agreement with the City of Seaside which governs the operations and community benefit requirements associated with the approval of the dispensary; and
WHEREAS, on December 28, 2017, the City Council approved the issuance of a Use Permit to operate a medical/adult recreational cannabis dispensary at 680 Broadway Avenue; and
WHEREAS, on March 15, 2018, the City Council approved a Development/Operating Agreement with Cannatopia LLC for the operation of a cannabis dispensary at 680 Broadway Avenue; and
WHEREAS, a cannabis dispensary was operated at 680 Broadway Avenue under the business name Urbn Leaf until August of 2023, when the business closed; and
WHEREAS, on February 28, 2024, the City received an application from CCSEA LLC to obtain a Development/Operating Agreement to open and operate a new dispensary within the same space that was previously occupied by Urbn Leaf; and
WHEREAS, on January 20, 2022, the City Council adopted Resolution 22- 15 establishing procedures for the consideration of applications to operate a cannabis dispensary; and
WHEREAS, City staff reviewed and scored the application pursuant to the criteria specified in Resolution 22-15, and determined that the application received a sufficient score to be forwarded to the City Council for consideration. .
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NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Seaside authorizes the City Manager to execute the attached Development/Operating Agreement, including any non-substantive changes that may be required.
PASSED AND ADOPTED at a meeting of the City Council of the City of Seaside held on June 20th, 2024 by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
APPROVED:
________________________
Ian N. Oglesby, Mayor
ATTEST:
____________________________
Dominique L. Davis, City Clerk
APPROVED TO FORM:
____________________________
Sheri L. Damon, City Attorney
ATTACHMENTS:
Exhibit A – Proposed Development/Operating Agreement, including the following Exhibits:
Exhibit A - Map showing Property and its location.
Exhibit B - Resolution of City Granting a Use Permit at 680 Broadway Avenue Exhibit C – Labor Equity, Diversity and Inclusion Plan
Exhibit D - Community Benefits and Investment Plan
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DEVELOPMENT/OPERATING AGREEMENT
BY AND BETWEEN
THE CITY OF SEASIDE
AND
CCSEA, LLC.
ARTICLE 1. PARTIES AND DATE.
This Development/Operating Agreement (“Agreement”) is dated June 20, 2024, for execution purposes only and is entered into between (i) the City of Seaside (“City”), a California municipal corporation, and CCSEA, LLC.(“Owner”), a California Limited Liability Company. This Agreement shall become effective on the Effective date defined in section 3.1.6.
ARTICLE 2. RECITALS.
2.1 WHEREAS, City is authorized to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property; and
2.2 WHEREAS, this Agreement and the Project are consistent with the City’s General Plan and Zoning Code and applicable provisions of the City’s Zoning Map as of the Effective Date; and
2.3 WHEREAS, all actions taken and approvals given by the City have been duly taken or approved in accordance with all applicable legal requirements for notice, public hearings, findings, votes, and other procedural matters; and
2.4 WHEREAS, Owner intends to develop a Cannabis Dispensary or Facility, with Commercial Cannabis Activities at the Dispensary or Facility , to the extent contemplated by the Seaside Municipal Code Chapter 19 and all applicable state laws, rules, and regulations.
2.5 WHEREAS, this Agreement, in the future, shall be read consistent with any statewide regulation passed by voter initiative or the state legislature, which decriminalizes or legalizes marijuana for medical or recreational use, also known as Adult Cannabis. This Agreement shall govern the conduct of this business to cultivate and distribute marijuana under such statewide regulation, consistent with any City regulations not preempted by any such statewide regulations.
2.6 WHEREAS, The Owner and City agree for mutual consideration as set forth in this agreement.
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ARTICLE 3. GENERAL TERMS.
3.1 Definitions and Exhibits. The following terms when used in this Agreement shall be defined as follows:
3.1.1 “Agreement” means this Development/Operating Agreement. [This is not a development agreement as defined in Government Code Section 65864 et seq.]
3.1.2 “City” means the City of Seaside, a California municipal corporation.
3.1.3 “Days” mean calendar days unless otherwise specified.
3.1.4 “Development” includes the right to maintain, repair or reconstruct any private building, structure, improvement or facility after the construction and completion thereof; provided, however, that such maintenance, repair, or reconstruction take place within the term of this Agreement on parcels subject to it.
3.1.5 “SMC” means the City of Seaside Municipal Code.
3.1.6 “Effective Date” means the date on which all of the following are true: (i) the City Council adopted a resolution adopting and approving the Development/Operating Agreement and (ii) all Exhibits to this Agreement are finalized, executed by all affected parties (if applicable) and attached hereto; provided, however, that if these conditions have not been fully satisfied by the Owner the Effective Date may not thereafter occur and this Agreement may not thereafter become effective.
3.1.7 “Existing Land Use Regulations” means all Land Use Regulations in effect on the date of execution. Existing Land Use Regulations include all provisions in the SMC Chapter 17, Zoning, and other regulations that are a matter of public record on the date of execution as they may be modified from time to time. Notwithstanding by the Existing Development Approvals.
Notwithstanding the foregoing, Existing Land Use Regulations include the regulations set forth in AB 266 and AB 243.
3.1.8 “Owner” means the Business or Dispensary Owner (s).
3.1.9 “Processing Fees” means the normal and customary
application, filing, plan check, permit fees for Cannabis activity approvals, design review, building permits, demolition permits, grading permits, and other similar permits and entitlements, and inspection fees, which fees are charged to reimburse the City’s expenses attributable to such applications, processing, Packet Page 139
permitting, review and inspection and which are in force and effect on a general basis at such time as said approvals, permits, review, inspection or entitlements are granted or conducted by the City.
3.1.10 “Project” means the Commercial Cannabis Activity as set forth in SMC Chapter 19, located on Assessor Parcel Number (APN) 011-291-019 that will be state licensed and issued a Dispensary Permit in full accordance with SMC Chapter 19.02.010 as may be amended, as well as in full compliance with all state laws, including but not limited to the Medical Marijuana Regulation and Safety Act adopted by the State of California (also known as AB 266 and AB 243).
This Project shall include the cultivation, manufacturing, testing, and distribution, of Cannabis as approved by state and local law. The Project will include construction and development of a [type of facility] Dispensary that will be issued a Dispensary Permit in full accordance with SMC Chapter 19.02.010 as amended as well as in full compliance with all state laws, including but not limited to the Medical Marijuana Regulation and Safety Act and the Adult Use of Marijuana Act.
3.1.11 “Property” means the real property where the Cannabis Dispensary or Facility is to be located as described on Exhibit A and shown on Exhibit B, as set forth in 3.2 below, both attached hereto and incorporated herein by this reference.
3.2 Exhibits. The following documents are attached to and, by this reference, made part of this Agreement:
Exhibit A - Map showing Property and its location.
Exhibit B - Resolution of City Granting a Use Permit at 680 Broadway Avenue
Exhibit C – Labor Equity, Diversity and Inclusion Plan
Exhibit D - Community Benefits and Investment Plan
3.3 Binding Effect of Agreement. The Property and Project are hereby made subject to this Agreement. Subject to the Owner’s receipt of all Development/Operating Approvals relative thereto, the Development of the Property is hereby authorized and shall, except as otherwise provided in this Agreement, be carried out only in accordance with the terms of this Agreement, the Development/Operating Plan, and the Dispensary Permit. In the event of conflict or uncertainty between this Agreement, the Dispensary Permit, and the Development Plan, the provisions of the Development/Operating Plan shall control.
3.4 Notices.
3.4.1 Notice Defined. As used in this Agreement, notice includes, without limitation, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other Packet Page 140
communication required or permitted hereunder.
3.4.2 Written Notice and Delivery. All notices shall be in writing and shall be considered given:
(i) when delivered in person to the recipient named below; or (ii) three days after deposit in the United States mail, postage prepaid, addressed to the recipient named below; or
(iii) on the date of delivery shown in the records of the delivery company after delivery to the recipient named below; or (iv) on the date of delivery by facsimile transmission to the recipient named below if a hard copy of the notice is deposited in the United States mail, postage prepaid, addressed to the recipient named below. All notices shall be addressed as follows:
If to the City:
City Manager
440 Harcourt Avenue
Seaside, CA 93955
If to the Owner:
CCSEA, LLC.
680 Broadway Avenue
Seaside, CA 93955
With Copies to:
City Attorney
440 Harcourt Avenue
Seaside, CA 93955
3.4.3 Address Changes. Either party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party or to a different address, or both.
Notices given before actual receipt of notice of change shall not be invalidated by the change.
3.5 Validity of this Agreement. The Owner and the City each acknowledge that neither party has made any representations to the other concerning the enforceability or validity of any one or more provisions of this Agreement, and that this Agreement has been drafted jointly and not by one party Packet Page 141
alone.
ARTICLE 4. PUBLIC BENEFITS
4.1 Intent. The parties acknowledge and agree that development of the Project on the Property will result in substantial public needs which will not be fully met by the Development/Operating Plan and further acknowledge and agree that this Agreement confers substantial private benefits on Owner which should be balanced by commensurate public benefits. Accordingly, the parties intend to provide consideration to the public to balance the private benefits conferred on Owner by providing more fully for the satisfaction of the public needs resulting from the Project.
4.2 Developer Fee. Applicant agrees to pay all established fees, charges, City costs, taxes, or other similar forms of expenses applicable to all Commercial Cannabis establishments and Dispensary Permits.
4.3 Jobs and Wage Creation.
4.3.1 Local Hiring. Owner agrees to use its reasonable
efforts to hire qualified City residents for jobs at the Project. Owner shall abide by all local hiring commitments provided in the Labor Equity, Diversity and Inclusion and Community Benefits and Investments Plans in Exhibits C and D, respectively.
4.3.2 Mandatory Payment of Wage. Owner agrees to pay
all employees wages in accordance with the wage rate provided in the Labor Equity, Diversity and Inclusion and Community Benefits and Investments Plans in Exhibits C and D, respectively.
4.5 Payment of Marijuana Business Operation Tax.
4.5.1 Amount of Tax. Pursuant to Chapter SMC Chapter
5.04.320, Owner shall pay City the annual business operations tax based on a percentage of gross receipts as set by the City Council by Ordinance in accordance with prior voter approval of up to ten percent (10%) annually. Such taxes shall be remitted in accordance with regulations adopted by City.
4.5.2 All other taxes established by Ordinance shall be paid in accordance with the SMC and State law, as both may be amended from time to time.
ARTICLE 5. REVIEW FOR COMPLIANCE.
5.1 Periodic Review. The City Manager or designee may review Packet Page 142
this Agreement annually, on or before each anniversary of the Effective Date or upon receipt of a request by Owner to extend the term, in order to ascertain Owner's good faith compliance with this Agreement including the Dispensary Permit. During the periodic review Owner shall be required to demonstrate good faith compliance with the terms of the Agreement, through submitting an annual monitoring report, records, or equivalent written materials to the City Manager or designee. The City may elect to extend the permits without review. Owner shall be entitled to a review hearing pursuant to 6.3 below in the event the City Manager or designee determines Owner is not in compliance with this Agreement, Use Permit or Dispensary Permit.
5.2 Special Review. The City Council may order a special review of compliance with this Agreement at any time. The City Manager or his or her designee shall conduct such special review. During a special review, the Owner shall be required to demonstrate good faith compliance with the terms of the Agreement. The burden of proof on this issue shall be on the Owner.
5.3 Review Hearing. At the time and place set for the review hearing, the Owner shall be given an opportunity to be heard. If the City Manager finds, based upon substantial evidence, that the Owner has not complied in good faith with the terms or conditions of this Agreement, the City Manager may recommend that the City Council terminate this Agreement notwithstanding any other provision of this Agreement to the contrary, or modify this Agreement and impose such conditions as are reasonably necessary to protect the interests of the City. The decision of the City Council shall be final, subject only to judicial review pursuant to Code of Civil Procedure Section 1094.5.
5.4 Failure to Conduct Review. The City’s failure to conduct a periodic review of this Agreement shall not constitute a breach of this Agreement or a waiver of future periodic reviews.
5.5 Cost of Review. The costs incurred by City in connection with the periodic reviews shall be borne by Owner.
ARTICLE 6. ANNEXATION INTO DISTRICTS
6.1 Owner agrees to the Subject Property being annexed into any current or future Community Facilities District, Community Services District, or any other tax district which would pertain to the Property.
ARTICLE 7. DEFAULTS AND REMEDIES.
7.1 Remedies in General. It is acknowledged by the parties that the City would not have entered into this Agreement if it were to be liable in damages under this Agreement, or with respect to this Agreement or the application thereof, except as hereinafter expressly provided. Subject to Packet Page 143
extensions of time by mutual consent in writing, failure or delay by either party to perform any term or provision of this Agreement shall constitute a default. In the event of alleged default or breach of any terms or conditions of this Agreement, the party alleging such default or breach shall give the other party not less than thirty (30) days’ notice in writing specifying the nature of the alleged default and the manner in which said default may be satisfactorily cured during any such thirty (30) day period, the party charged shall not be considered in default for purposes of termination or institution of legal proceedings. Notwithstanding the foregoing to the contrary, if the alleged default is of such a nature that it cannot be cured within thirty (30) days, the alleged defaulting party shall not be deemed in default as long as such party commences to cure such default within such thirty (30) day period and thereafter diligently prosecutes such cure to completion.
7. 2 After notice and expiration of the thirty (30) day period, the other party to this Agreement, at its option, may institute legal proceedings pursuant to this Agreement.
7.3 In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Agreement, except that the City shall not be liable in monetary damages, unless expressly provided for in this Agreement, to the Owner or to any successors in interest of the Owner, or to any other person, and the Owner covenants on behalf of itself and all successors in interest to the Property or any portion thereof, not to sue for damages or claim any damages:
(i) For any breach of this Agreement or for any cause of action which arises out of this Agreement: or
(ii) For the impairment or restriction of any right or interest conveyed or provided under, with, or pursuant to this Agreement, including, without limitation, any impairment or restriction which the Owner characterizes as a regulatory taking or inverse condemnation; or
(iii) Arising out of or connected with any dispute, controversy or issue regarding the application or interpretation or effect of the provisions of this Agreement.
7.4 Nothing contained herein shall modify or abridge the Owner’s rights or remedies (including its rights for damages, if any) resulting from the exercise by the City of its power of eminent domain. Nothing contained herein shall modify or abridge the Owner’s rights or remedies (including its rights for damages, if any) resulting from the grossly negligent or malicious acts of the City and its officials, officers, agents and employees. Nothing herein shall modify or abridge any defenses or immunities available to the City and its employees pursuant to the Government Claims Act and all other applicable statutes and Packet Page 144
decisional law.
7.5 Release. Except for those remedies set forth in Sections
8.1and 8.4, the Owner, for itself, its successors and assignees, hereby releases the City, its officers, agents and employees from any and all claims, demands, actions, or suits of any kind or nature arising out of any liability, known or unknown, present or future, based or asserted, pursuant to Article 1, Section 19 of the California Constitution, the Fifth Amendment of the United States Constitution, or any other law or ordinance which seeks to impose any other liability or damage, whatsoever, upon the City because it entered into this Agreement or because of the terms of this Agreement.
The Owner acknowledges that it may have suffered, or may suffer, damages and other injuries that are unknown to it, or unknowable to it, at the time of execution of this Agreement. Such fact notwithstanding, the Owner agrees that the release provided in this Section 7.2 shall apply to such unknown or unknowable claims or damages. Without limiting the generality of the forgoing, the owner acknowledges the provisions of California Civil Code Section 1542, which provide:
“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release which if know by him or her must have materially affected his or her settlement with the debtor.”
The owner hereby waves, to the maximum legal extent, the provisions of California Civil Code Section 1542 and all other statutes and judicial decisions of similar effect.
Initial_____
7.6 Attorneys’ Fees and Costs. In any action or proceeding between the City and the Owner brought to interpret or enforce this Agreement, or which in any way arises out of the existence of this Agreement or is based upon any term or provision contained herein, the “prevailing party” in such action or proceeding shall be entitled to recover from the non-prevailing party, in addition to all other relief to which the prevailing party may be entitled pursuant to this Agreement, the prevailing party’s reasonable attorneys’ fees and litigation costs, in an amount to be determined by the court. The prevailing party shall be determined by the court in accordance with California Code of Civil Procedure Section 1032. Fees and costs recoverable pursuant to this Section 8.5 include those incurred during any appeal from an underlying judgment and in the Packet Page 145
enforcement of any judgment rendered in any such action or proceeding. The parties agree that each contributed to the drafting of this Agreement, and that neither party is responsible for its drafting in determining whether any ambiguities exist as a result of drafting. Ambiguities shall not automatically be ruled against either party.
ARTICLE 8. THIRD PARTY LITIGATION.
8.1 General Plan Litigation. The City has determined that this Agreement is consistent with its General Plan. The Owner has reviewed the General Plan and concurs with the City’s determination.
8.1 Hold Harmless Agreement. Owner hereby agrees to, and shall hold City, its elective and appointive boards, commissions, officers, agents, and employees harmless from any liability for damage or claims for damage for personal injury, including death, as well as from claims for property damage which may arise from Owner or Owner’s contractors, subcontractors, agents, or employees operations under this Agreement, whether such operations be by Owner, or by any of Owner’s contractors, subcontractors, agents, or employees operations under this Agreement, whether such operations be by Owner, or by any of Owner’s contractors, subcontractors, or by any one or more persons directly or indirectly employed by, or acting as agent for Owner or any of Owner’s contractors or subcontractors. Owner agrees to and shall defend City and its elective and appointive boards, commissions, officers, agents and employees from any suits or actions at law or in equity for damage caused, or alleged to have been caused, by reason of any of the aforesaid operations.
8.2 Indemnification. Owner shall defend, indemnify and hold harmless City and its agents, officers and employees against and from any and all liabilities, demands, claims, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and reasonable attorneys' fees), which any or all of them may suffer, incur, be responsible for or pay out as a result of or in connection with any challenge to the legality, validity or adequacy of any of the following: (i) this Agreement and the concurrent and subsequent permits, licenses and entitlements approved for the Project or Property; (ii) the environmental impact report, mitigated negative declaration or negative declaration, as the case may be, prepared in connection with the development of the Property; and (iii) the proceedings undertaken in connection with the adoption or approval of any of the above. In the event of any legal or equitable action or other proceeding instituted by any third party (including a governmental entity or official) challenging the validity of any provision of this Agreement or any portion thereof as set forth herein, the parties shall mutually cooperate with each other in defense of said action or proceeding.
Notwithstanding the above, the City, at is sole option, may tender the complete defense of any third party challenge as described herein. In the event the City Packet Page 146
elects to contract with special counsel to provide for such a defense, the City shall meet and confer with Owner regarding the selection of counsel, and Owner shall pay all costs related to retention of such counsel.
8.3 Accept Reasonable Good Faith Settlement. With respect to Article 10, the City shall not reject any reasonable good faith settlement. If the City does reject a reasonable, good faith settlement that is acceptable to the Owner, the Owner may enter into a settlement of the action, as it relates to the Owner, and the City shall thereafter defend such action (including appeals) at its own cost and be solely responsible for any judgments rendered in connection with such action. This Section 9.3 applies exclusively to settlements pertaining to monetary damages or damages which are remedial by the payment of monetary compensation. The Owner and the City expressly agree that this Section 10.6 does not apply to any settlement that requires an exercise of the City’s police powers, limits the City’s exercise of its police powers, or affects the conduct of the City’s municipal operations.
ARTICLE 9. MISCELLANEOUS PROVISIONS.
9.1 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements that are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement, provided, however, City at its option may rely on statements by Owner’s agents at the public hearings leading to the City’s approval of the project or on written documents by Owner or Owner’s agents that are a part of the public record.
9.2 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, by a court of competent jurisdiction, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform taking into consideration the purposes of this Agreement. The foregoing notwithstanding, the provision of the public benefits set forth in Article 4, including the payment of the fees set forth therein, are essential elements of this Agreement and the City would not have entered into this Agreement but for such provisions, and therefore in the event that any portion of such provisions are determined to be invalid, void or unenforceable, at the City’s option this entire Agreement shall terminate and from that point on be null and void and of no force and effect whatsoever.
9.3 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole Packet Page 147
according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement, all parties having been represented by counsel in the negotiation and preparation hereof.
9.4 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement.
9.5 Singular and Plural; Gender, and Person. Except where the context requires otherwise, the singular of any word shall include the plural and vice versa, and pronouns inferring the masculine gender shall include the feminine gender and neuter, and vice versa, and a reference to “person” shall include, in addition to a natural person, any governmental entity and any partnership, corporation, joint venture or any other form of business entity.
9.6 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element.
9.7 Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party’s right to insist and demand strict compliance by the other party with the terms of this Agreement thereafter.
9.8 No Third Party Beneficiaries. The only parties to this Agreement are Owner and the City. This Agreement is made and entered into for the sole protection and benefit of the parties and their successors and assigns. There are no third party beneficiaries and this Agreement is not intended, and shall not be construed, to benefit, or be enforceable by any other person whatsoever.
9.9 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party.
9.10 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes.
The burdens of the Agreement shall be binding upon, and the benefits of the Agreement shall inure to all successors in interest to the parties to this Agreement.
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9.11 Counterparts. This Agreement may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument.
9.12 Jurisdiction and Venue. Any action at law or in equity arising under this Agreement or brought by a party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and prosecuted in the Superior Court of the County of Monterey, State of California, and the parties hereto waive all provisions of federal or state law or judicial decision providing for the filing, removal or change of venue to any other state or federal court, including, without limitation, Code of Civil Procedure Section 394.
9.13 Agent for Service of Process. In the event the Owner is not a resident of the State of California or it is an association, partnership or joint venture without a member, partner or joint venturer, resident of the State of California, or if it is a foreign corporation, then the Owner shall file, upon its execution of this Agreement, with the City Manager the name of a natural person acting as the agent of owner residing in the State of California, giving his or her name, residence and business addresses, as its agent for the purpose of service of process in any court action arising out of or based upon this Agreement, and the delivery to such agent of a copy of any process in any such action shall constitute valid service upon the Owner. If for any reason service of such process upon such agent is not feasible, then in such event the Owner may be personally served with such process out of this County and such service shall constitute valid service upon the Owner. The Owner is amenable to the process so described, submits to the jurisdiction of the Court so obtained, and waives any and all objections and protests thereto.
9.14 Authority to Execute. The person or persons executing this Agreement on behalf of the Owner warrants and represents that he/she/they have the authority to execute this Agreement on behalf of his/her/their corporation, partnership or business entity and warrants and represents that he/she/they has/have the authority to bind the Owner to the performance of its obligations hereunder.
Each individual executing this Agreement on behalf of his or her respective company or entity shall represent and warrant that:
9.14.1 The individual is authorized to execute and deliver this Agreement on behalf of that company or entity in accordance with a duly adopted resolution of the company’s board of directors or appropriate governing body and in accordance with that company’s or entity’s articles of incorporation or charter and bylaws or applicable formation documents; and
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9.14.2 This Agreement is binding on that company or entity in accordance with its terms; and
9.14.3 The company or entity is a duly organized and legally existing company or entity in good standing; and
9.14.4 The execution and delivery of this Agreement by that company or entity shall not result in any breach of or constitute a default under any mortgage, deed of trust, loan agreement, credit agreement, partnership agreement, or other contract or instrument to which that company or entity is party or by which that company or entity may be bound.
9.15 Nexus/Reasonable Relationship Challenges. Owner
consents to, and waives any rights it may have now or in the future to challenge the legal validity of, the conditions, requirements, payment of any kind of fee whatsoever, policies or programs set forth in this Agreement including, without limitation, any claim that they constitute an abuse of the police power, violate substantive due process, deny equal protection of the laws, effect a taking of property without payment of just compensation, or impose an unlawful tax.
9.16 Owner Compliance with Laws. Owner hereby agrees to comply with all applicable state, federal and local laws, regulations, rules and policies.
9.17 No Damages Relief Against City. The parties acknowledge that the City would not have entered into this Agreement had it been exposed to damage claims from Owner, or Owners successors in interest, assigns, partners, or anyone acting on behalf of the Owner for any breach thereof. As such, the parties agree that in no event shall Owner, or Owners successors in interest, assigns, partners, or anyone acting on behalf of the Owner be entitled to recover damages against City for breach of this Agreement.
9.18 Laws. Owner agrees to comply with all applicable state, regional, and local laws, regulations, polices and rules.
9.19 Compliance with Conditions of Approval. Owner agrees to comply with and fulfill all conditions of approval for any and all entitlement, permits, and/or licenses it receives form the City. All conditions of approval for all entitlements, permits and/or licenses are hereto incorporated.
9.20 Owner agrees to comply with all applicable provisions of any current or future applicable federal, state, or local marijuana/Cannabis laws, including AB 266 and AB 243, as duly adopted, including any and all development standards, license and revocation procedures, and the like. Should there be anything in federal or state law, including but not limited to AB 266 or AB 243 which contradicts any provision in this Agreement.
Packet Page 150
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the dates written above.
CITY OF SEASIDE OWNERS
By:_________________________ ___________________________ Ian N. Oglesby, Mayor Brad Palmer
ATTEST:
___________________________
Grant Palmer
By:_________________________
Dominique L. Davis, City Clerk
APPROVED AS TO FORM:
By:__________________________
Sheri Damon, City Attorney
Packet Page 151
Exhibit A to Draft Development Operating Agreement: Location Map 680 Broadway Avenue
APN: 011-291-019
Packet Page 152
RESOLUTION NO. 17-100
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASTOE
GRANTING THE APPROVAL OF A DISCRETIONARY USE PERMIT TO ALLOW A MEDICAL/ADULT RECREATIONAL CANNABIS FACILn'Y LOCATED AT 680 BROADWAY (APN# 011-291-019) IN THE MDOED USE (MX) ZONING DISTMCT.
WHEREAS, Baird Family Trus^Peter Baiid, property owner and CannEdge LLC, dba Cannatopia, applicant, have applied for a Discretionary Use Permit to allow:
A. The establishment of a MedicaVAdult Recreation Cannabis facility.
WHEREAS, the proposed project requires discretionary use permit approval, and it is the responsibility of the Planning Commission in the Seaside Municipal Code to have considered and weighed the merits of the application and public input in relation to the policies, standards and intent of the Seaside General Plan and Seaside Municipal Code in making a recommendation on fhe proposed cannabis facility to the City Council; and
WHEREAS, the Seaside Plamung Uonunission considered oral comments and written information concerning the proposed amendment at fhree duly noticed special public meetings held on December 4, 2017, December 5, 2017, and December 20, 2017; and WHEREAS, the Seaside Planning Commission acted to declare the application as being a qualified applicant on December 20, 2017 and made a recommendation (hat fhe City Council consider the application for the issuance a cannabis facility; and
WHEREAS, the Seaside Municipal Code requires the approval of a discretionary use permit by fhe City Council for a Medical/Adult Recreation Caimabis facUity, and it is the responsibility offhe City Council to have considered and weighed the merits of the appUcation and public input in relation to the policies, standards and intent of the Seaside General Plan and Seaside Municipal Code in review of the application; and
WHEREAS, the Seaside City Council considered oral comments and written information concerning the proposed amendment at a duly noticed special public meeting held on December 28, 2017; and
WHEREAS, the project is a Categorically Exempt, Class 1, Section 15301 meeting the following conditions:
a) The proposed development will consist of converting an existing commercial building into a retail medieal/adult recreation eannabis facility which will not change the intensity of the project site or the City's infrastructure ofF-site in order to accommodate the proposed use. It can be seen with certainty that the proposed use wiU not create any significant environmental impact on the community and neighboring properties.
Packet Page 153
NOW, THEREFORE, BE IT RESOLVED, that the City Council adopts the following findings for (he MedicaI/Adult Recreation Cannabis facility Discretionary Use Permit 1) The proposed use is aUowed within (he applicable zone and complies with all other applicable provisions of this Zoning Ordinance and the Municipal Code.
Evidence: This project is located within the Mixed use Zoning District in which a MedicaVAdult Recreation Cannabis facility may be established with use permit approval.
Evidence: The applicant will provide sufficient security measures to both deter and prevent unauthorized entrance into the facility, eliminate any unauthorized loitering inside and outside of the facility, and minimize excessive calls for service by the City's public safety resources.
Evidence: There are no existing cannabis dispensary facilities operating within 1,000 feet of the project site.
Evidence: Cannatopia scored full points for location of business, which will serve as a catalyst project for the City of Seaside within the West Broadway Urban Village Specific Plan.
Evidence: Cannatopia scored well for business plan points by demonstrating revenue and capitalization, achievable within the City of Seaside based on the project location being located within an established retail area and the project location having access from the City's entrances on Fremont Boulevard to the north and south and the entrance on Broadway Avenue to the east.
Evidence: Cannatopia scored well for local enterprise and community benefits points, which fosters economic and community development within the City of Seaside and provides financial contributions to local non-profit community organizations within the City of Seaside.
Evidence; Cannatopia scored full points for neighborhood compatibility with commitments to exemplary security and facade improvement upgrades, which promotes neighborhood unity and land use compatibility/vitality within the City of Seaside.
Evidence: Cannatopia scored well for safety and security, which helps to provide public safety wifhin the City of Seaside by not creating any type of nuisance which would be detrimental to the overall general health, safety and welfare of the community and/or cause a financial burden on public safety resources for unnecessary calls for service. 2) The proposed use is consistent with the General Plan and any applicable specific plan.
Seaside General Plan Confoimance
Evidence: Per the General Plan Land Use Element, the site is designated as Mixed use (MX) West Broadway Urban Village Specific Plan. The following Goals and Policies would apply:
Land Use Element Goal LU-1: Promote a mixture of land uses and a balance of jobs and housing to support a community in which people can live, work, and play.
Packet Page 154
Land \Use Element Policy LU- 1.1
Land Use Element Policy LU-1.2:
Land Use Element Goal LU-1. 3:
Evidence: The project site will be contained wifhin an existing commercial building which has demonstrated that it can contain the necessary capacity to operate a cannabis dispensaiy without overburdening existing roadways and City infrastructure.
The proposed use would serve to implement and diversify the land uses within the West Broadway Urban Vfllage Specific Plan and improve the City's job housing balance.
Evidence: The project would occupy a vacant tenant space, increase pedestrian activity, have the potential for increased pass by trips for adjoining businesses, and wUl employ Seaside residents.
The proposed use will serve to provide additional jobs to improve the City's job housing balance.
Evidence: The project will employ Seaside residents.
Encourage regional commercial and visitor-serving commercial development that will enhance the identity of Seaside and attract visitors to the community.
Evidence: The project would occupy a vacant tenant space, increase pedestrian activity, and complete a commercial fayade upgrade.
Land Use Element Goal LU-2:
Element Policy -LU-2.1:
Revitalize existing commercial areas.
Evidence: The cannabis facility will serve to establish a regional commodity within the City of Seaside that will provide a substantial investment within the commimity that will serve to improve the character offhe West Broadway Spedfic Plan area and attract customers both from the Monterey Bay area and tourism.
The proposed project will serve to revitalize an existing commercial area of the community that is targeted as a specific plan area to provide new jobs and services as the downtown core of the community.
Evidence: The proposed use will serve to fill a vacant commercial site and remove a blighted condition through the extended vacancy of the site since it was consh-ucted.
Packet Page 155
3) The design, location, size, and operating characteristics of the proposed activity are compatible with the existing and planned future land uses in (he vicinity.
Evidence: The proposed Medical/Adult Recreation Cannabis facility will meet <fae needs of the community consistent within the West Broadway Urban Village Specific Plan design goals and improve the overall business character with the infusion of new facade treatments and monetary investment in the infi-astructure of the site.
4) The site is physically suitable for the type, density and intensity of discretionary use being proposed, including access, utilities, and the absence of physical constraints.
Evidence: The project site is served by existing water, wastewater, and electrical infrastructure and facilities with adequate capacity to serve the proposed project. The proposed conversion of a retail commercial building to a Medical/Adult Recreation Caimabis facility with interior changes and exterior fayade changes conforms to Land Discretionary use Element of the Seaside General Plan. 5) Granting the permit would not be detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to persons, property, or improvements in the vicimty and zone district in which the property is located.
Evidence: The proposed Medical/Adult Recreation Cannabis facility will provide for a community facility that is safe and attractive for a Cannabis dispensary use.
Evidence: The proposed conversion of a commercial retail bmlding to a Medical/Adult Recreation Cannabis facility would not be detrimental to the public health, safety and general welfare of the people of the City and surrounding neighborhood. The proposed use is located on an in-fill site and would help maintain a compact city form consistent with the scale and character of the surrounding commercial neighborhood.
BE IT FURTHER RESOLVED, that fhe City Council approves (he Discretionary Use Permit Application for "Caimatopia" subject to the following conditions:
Project Specific
Plamung;
1. Except as modified by required conditions of approval, the permittee shall have the right to operate a Medical/Adult Recreation Retail Cannabis Facility substantially in accordance with the project material stamped "Received by the City of Seaside November 21, 2017" and subject to the floor plan and exterior facade being modified to comply with the general Cannabis and conditions listed. The aerial site plan is provided as Exhibit "A".
Cannabis
1. Cannabis may not be inhaled, smoked, eaten, ingested, or otherwise consumed within the Business, on the Property, in the parking areas of the Property, or in those areas restricted under the provisions of Health and Safety Code §11362. 79.
Packet Page 156
2. All storage, display, sales or other distribution ofcannabis shall occur only within an enclosed area of a medical cannabis business and shall not be visible from the exterior of the business.
Delivery shall be as approved by fhe Seaside Police Department.
3. The cannabis facility shall have an odor-absorbing ventilation and exhaust system to ensure that odor generated inside the premises is not detected outside the premises.
4. A sign shall be posted in a conspicuous location inside the property advising that use of cannabis may impair a person's ability to drive a motor vehicle or operate heavy machinery.
5. No person, other than a patient, caregiver, licensee, employee, or a contractor shall be in the medical carmabis dispensary room.
6. Medical/Adult Caimabis Dispensary hours of operation shall be as regulated by State and City law.
7. Adults 21 and over can buy cannabis at retail dispensaries with an "A" adult use license as of Jan 1, 2018 as regulated by State Law.
8. No Caimabis Dispensary, Management Employee or employee shall cause or permit the sale, dispensing, or consumption of alcoholic beverages on the Property or in the parking area of the property.
Testing. Packaemg, Labeline
9. All cannabis product labels shall also include the following information, prominently displayed and in a clear and legible font: For packages containing only dried flower, the net weight of medical cannabis in the package; A warning if nuts or other known allergens are discretionary used; List ofpharmacologically active ingredients, including, but not limited to, tetrahydrocannabmol (THC), cannabidiol (CBD), and other cannabinoid content, the THC and other cannabinoid amount in milligrams per serving, servings per package, and the THC and other cannabinoid amount in milligrams for the package total; Clear indication, in bold type, that the product contains medical cannabis; Identification of the source and date of cultivation and manufacture.
10. Only generic food names may be used to describe edible medical cannabis products. Businesses should refer to State and local law to determine what activities are permitted or prohibited for licensed dispensaries in the City of Seaside. Failure to comply may result in penalties, suspension or revocation of the dispensary business license.
Transportation
11. All caimabis-infused products must be hand packaged, sealed and labeled, and the products stored in closed containers that are labeled. All medical cannabis m a usable form for medicinal use must be packaged and stored in closed containers that are labeled.
Packet Page 157
12. Each container used to transport or deliver cannabis must be labeled as regulated by State law.
The label shall be shown to any law enforcement ofBcer who requests to see the label.
Community Relations
13. Each Cannabis Business shall designate a Community Relations Liaison, who shall be at least twenty-one (21) years of age; and shall provide the Liaison's name to the City Manager. The Liaison shall receive all complaints received by the City Manager regarding the MedicaVAdult Cannabis Dispensary, and make good faith attempts to promptly resolve all complaints.
Inspections
14. State and Local representatives (Health, Fire and Building inspectors) may enter and inspect the Property of each Cannabis Business between fhe hours of nine (9) am and eight (8) pm or during normal business hours.
15. Licensing authorities and State and Local agencies may, at any time, inspect shipments and request documentation for current inventory.
16. Every Cannabis Business shall implement sufficient security measures, as approved by the Seaside Police Dqiartment to both deter and prevent unauthorized entrance into areas containmg cannabis or cannabis products and theft ofcannabis or cannabis products. These security measures, as appropriate, shall include, but not be limited to, the following: (a) Preventing individuals from remaining on the premises if they are not engaging in activity expressly related to the operations of the business; (b) Establishing limited access areas accessible only to authorized personnel; (c) Storing all finished cannabis and cannabis products in a secured and locked room, safe, or vault, and in a manner as to prevent diversion, theft, and loss.
17. Each Camiabis Business shall install and maintain a fully operational digital video surveillance and camera recording system that monitors no less than the front and rear of the Property, all points ofingress and egress at the business, all points of sale within the business, all areas within the business where medical cannabis products are displayed for sale, and all limited access areas within the facility as approved by the Seaside Police Department.
18. The video and surveillance system shall, at a minimum, meet the following requirements: (a) Capture a fall view of the public right-of-ways and any parking lot under the control of the medical cannabis business; (b) Record and maintain video 24/7 for a minimum of ninety (90) days, or as otherwise determined by the Seaside Police Dqiartment.
19. The cannabis busiuess shall install and use a safe for storage of any processed caimabis and cash on the property when the business is closed to the public. The safe shall be incorporated into the building as a secure recqrtacle.
20. The cannabis business shall install and discretionary use a fire and burglar alarm system that is monitored by a company that is staffed twenty-four hours (24) a day, seven (7) days a week.
Packet Page 158
The security plan submitted to the City shall identify the company monitoring the alarm, including contact information. Changes in the security plan shall be approved by the Seaside Police Dq)artment prior to implementation.
21. A cannabis business engaged in retail sales shall retain and maintain a security guard or patrol, licensed by the State of California, generally located at an indoor guard station, to an extent sufGcient to ensure safety and approved by the Seaside Police Dq>artment.
22. No dried caimabis shall be stored at the property in structures that are not completely enclosed, in an unlocked vault or safe, or in any other unsecured storage structure.
23. Windows and roof hatches at the Cannabis Business shall be secured so as to prevent unauthorized entry.
Accountine/Record Keemna
24. The Caimabis Business shall maintain an inventory management system. The point of sale software shall be, upon regulatory implementation of the MMRSA, compliant with the State Unique Identifier and Track and Trace Program.
25. The records of the business shall clearly track cannabis product inventory purchased and/or grown and sales and disposal thereof to clearly track revenue fi-om sales of any medical cannabis from other paraphernalia or services offered by the Cannabis Business.
26. The records shall clearly show the source, amount, price and dates of all caimabis received or purchased, and the amount, price, dates and business, patient or caregiver for all cannabis sold.
27. Each Cannabis Business shall keep a complete set of books of account, invoices, copies of orders and sales, shipping instructions, bills of lading, weigh bills, bank statements including cancelled checks and deposit slips and all other records necessary to show fully the business transactions of such licensee.
28. Each business shall maintain an inventory record documenting the dates and amounts of camiabis sold at the Property, and the daily amounts ofcannabis stored on the Property.
29. Receipts shall be maintained via a computer program or by pre-numbered receipts and discretionary used for each sale.
30. Each business shall maintain on-site proof of a valid Business License Permit issued by the City of Seaside.
31. All records kept and maintained by the licensee shall at all times protect the confidential information of the patient or caregiver. All records must be identified as confidential and any disclosure shall be limited in a manner that maintains the confidentiality of the information contained therein.
Packet Page 159
32. A Cannabis Dispensary holding a Business License Permit shall report to the City Manager each of the following within the time specified; provided that if no time is specified, such a report shall be provided within fifteen (15) days of the triggering event: (1) The transfer or change of ownership interest, business manager, or m the permit application at least thirty days before the transfer or change; (2) Sales and taxable transactions and file sales and discretionary use tax reports to fhe City quarterly; (3) A conviction of any disqualifying crime by any applicant of a Cannabis Business.
City Standards
33. Discretionary Use Permit approval is subject to revocation procedures contained in S.M.C.S.
17. 80.060 in the event any of the conditions of this approval are violated, this discredonary pennit was granted on (he basis of false or misleading information, written or oral, given willingly or negligently by the applicant or property owner, and/or (here has been a discontinuance of the discretionary use, or purposed for which the permit was issued, for a period of 1 80 days or more.
34. This Discretionary Use Permit is subject to procedures and requirements of Chapter 17.64 (Permit Implementation, Time Limits, and Extensions), and those related to appeals and revocation in Article 6 (Zoning Ordinance Administration) of Title 17 of the Municipal Code.
35. The applicant agrees as a condition and in consideration of the approval of this discretionary permit that it will defend, indemnify and hold harmless the City of Seaside or its agents, ofGcers and employees from any claim, action or proceeding against the City or its agents, ofBcers or employees to attack, set aside, void or annul this approval. The applicant will reimburse the City for any court costs and attorney's fees, which the City may be required by a court to pay as a result of such action. City may, at its sole discretion, participate in the defense of such action; but such participation shall not relieve applicant of his obligations under this condition. The City shall promptly notify the applicant of any such claim, action, or proceeding, and the City shall cooperate fully in the defense thereof.
36. Any proposed future development shall comply with the requirements of the applicable City and County agencies and must be in compliance with State Law.
37. The project shall comply with the requirements and the applicable ordinances of the Monterey Peninsula Water Management District (MPWMD) and Monterey Regional Water Pollution Control Agency (MRWPCA).
38. The project shall be responsible for all applicable local and/or regional development and/or impact fees including, but not limited to, sewer, water, and traffic fees, which shall be paid prior to building permit issuance.
39. This Discretionary Use Permit will expire 12 months from the date of approval. In accordance with Section 17.54.080.B. l.a of the Zoning Code, the applicant must file request for time extension at least 30 days prior to expiration date in order to receive consideration of time extension by the City CouncU.
Packet Page 160
40. For purposes of assuring compliance, the applicant, agents, representatives or their assignees agree not to deny or impede access to the subject property by City employees in the performance of their duties.
PASSED AND ADOPTED at the special meeting of the City Council of the City of Seaside, State of California, on the 28fh of December, 2017, by fhe following vote:
AYES: 4 COUNCILMEMBERS: Alexander, Campbell, Pacheco, Rubio NOES: 0 COUNCILMEMBERS: None
ABSENT: 1 COUNCILMEMBERS: Jones
ABSTAIN: 0 COUNCILMEMBERS: None
ATTEST:
APPROVED:
Ralph Rubio, Mayor
Lesley Milton-Rerig, City Clerk
Packet Page 161
Resolution No. 17-100
These permits are hereby accepted upon the express terms and conditions hereof, and shall have no force or effect unless and until agreed to, in writing, by the applicant and property owner(s).
The undersigned hereby acknowledge the approved terms and conditions and agree to fully conform to, and comply with, said terms and conditions within the time frames approved by the City of Seaside City Council.
, 3- ^-°r - / -7
Applicant's Signature Date
/.i. - -2- 9 -^ "7
Property O^nei^Slgnature (if different from above) Date Packet Page 162
12 SECTION B: LABOR EQUITY, DIVERSITY AND
INCLUSION
Labor and Employment
In addition to creating full-time, permanent positions, CannaCruz will make every effort to use city of Seaside contractors and businesses and to give preference to city of Seaside contractors and businesses who also hire other city of Seaside contractors and businesses.
Number of Employees
The number of employees at opening and at full capacity is approximately 20.
Positions and Responsibilities
The job titles and wage scale are as follows:
POSITION DESCRIPTION
General Manager The General Manager is responsible for all of the day-to-day activities required to operate the facility. These include, but are not limited to: HR and personnel management, management of inventory, production / processing and packing, reception activities, POS system operation, customer database, and employee training, and security. The Manager will assume the duties and responsibilities of any vacant position.
Quality Control Specialist /
Packaging & Labeling
Labeling all packages in accordance with CannaCruz and state procedures. Record keeping for all phases of packaging.
Management of quality control programs including but not limited to: Conduct internal audits and submit summary reports to management for review and the development of improvement strategies, batch packet review and final ‘positive release’, daily monitoring of operational procedures for compliance to all applicable regulations, guidelines and policies.
Information Specialist Meet with qualifying customers to discuss various aspects of their cannabis needs. Enter pertinent information into the customer database. Educate customers about various strains of cannabis, methods of administration, and recent medical studies on the effects of cannabis. Discuss other CannaCruz services that may enhance the customers experience such as treatment studies, Packet Page 163
13 support groups, seminars, reading material, community outreach programs, discount promotions, volunteer days, etc.
Inventory Manager Prepare and maintain documents that account for all cannabis received, stored, packaged, dispensed and destroyed.
Conduct
routine physical inventory counts and cycle counts.
Investigate
discrepancies in inventory and off target yields.
Maintain
accurate inventory in POS and parallel paper systems.
Receptionist Receive customers. Distribute and collect all required paperwork.
Verify eligibility of customers and compliance to rules governing ‘qualifying customers’. Maintain organized workspace. Data entry and additional clerical work as needed. Answer phones and email inquiries.
Register Clerk/Bud-Tender Convey cannabis packages from dispensing area to counter / POS register. Operate Point of Sale (POS) cash register and record purchase of cannabis products. Work with customers for
seamless service.
Security Chief Implement and maintain a security program. Manage security staff. Write routine reports. Monitor surveillance equipment for activities outside the normal CannaCruz activities. Actively solicit an open relationship with local law enforcement.
Review Safety
and Security Plan annually for updates. Monitor new laws and regulations that require security improvements. Train staff on security SOP’s.
Security Screen individuals requesting entrance to the facility. Monitor premises for activities outside the normal and acceptable activities. Monitor separate areas of the facility for the purpose of controlling access to those areas. Proactively identify safety concerns. Usher customers to the appropriate area. Write reports.
Bookkeeper Accounting and payroll for CannaCruz.
Janitor Facilities cleaning and maintenance. Daily disposal of trash.
Monitor CannaCruz facilities inside and outside to ensure a clean and organized facility.
Packet Page 164
14 Wages and Benefits
CannaCruz supports the concept of paying its employees a competitive living wage for their work.
Employee compensation will be commensurate with experience and qualifications and will be in line with the industry.
Heightened Pay and Living Wage
CannaCruz currently offers employees a competitive compensation package and living wage.
Minimum wage in California is currently $15.50, and we offer a starting wage of $18, plus benefits, which equates to $23 to $25. CannaCruz is committed to providing a living wage and fair compensation to all employees.
Employee Benefits
HEALTH
CannaCruz offers 50 percent paid health insurance to eligible employees, including spouse and dependent coverage. To be eligible, employees must work an average of 20 or more hours per week and successfully complete the 90-day probation period.
TIME OFF
CannaCruz offers all Employees the opportunity for a healthy work–life balance by encouraging planned time off, as long as workflow is maintained to CannaCruz standards. CannaCruz offers eligible Employees Paid Time Off (PTO) as paid sick leave and vacation/personal time off.
CannaCruz offers ineligible Employees various unpaid leaves and allowances that do not impact one’s attendance record. PTO for required sick leave will be accrued in keeping with state and federal law.
Employee Training and Continuing Education
In addition, CannaCruz is committed to providing employee training and support for the continuing education of its employees.
Through training outlined in its employee handbook, CannaCruz plans to provide job training and professional development for all of its employees.
We will have regular meetings to make sure that staff is updated on the evolving regulatory environment of cannabis whether it be new products, laws and regulations and anything else that maybe pertinent to the industry (local and state).
We will make every effort to train, promote and fill open positions from within our qualified staff before recruiting externally. Employees be provided paid training on the following topics:
Packet Page 165
15 x Inventory control
x Product storage and handling
x Track and trace software
x Packaging and labeling
x Security measures and procedures
x Safety handling procedures
City of Seaside Recruitment and Hiring
CannaCruz intends to provide economic benefits to the city of Seaside in the form of providing competitive wages and benefits, providing employee training and development, recruiting and hiring city of Seaside residents, and employing city of Seaside contractors.
Local hiring is a benefit for any business for many reasons. The city of Seaside is an ideal location for the proposed business due to its vibrant, diverse workforce. Recruitment efforts and hiring preference will be designed to give preference to city of Seaside residents. We anticipate that 100 percent of the employees who work for CannaCruz will be city of Seaside hires.
To enhance our city of Seaside recruitment efforts, we may consider a number of strategies such as participating in city of Seaside job fairs, participating in city of Seaside business organizations, and providing incentives for relocation. Some strategies that we may employ to recruit city of Seaside employees are as follows:
x Local connections of principals
x Outreach to city of Seaside organizations such as Chamber of Commerce x Outreach to city of Seaside education centers
x Advertising in city of Seaside media outlets
x Signage at the proposed business
Partnerships With City of Seaside Vendors, Contractors, Service Providers
In addition, CannaCruz will make every effort to use city of Seaside contractors and businesses and to give preference to city of Seaside contractors and businesses who also hire city of Seaside residents and work with other city of Seaside businesses.
Packet Page 166
16 We intend to use as many city of Seaside professionals as possible because it makes good business sense, results in efficiency as locals have better knowledge of local regulations, is convenient, and benefits the city in which we do business.
Supplies that will be needed for the startup and operation of the proposed CannaCruz business will be purchased from city of Seaside. In addition, CannaCruz plans to employ a city of Seaside accounting firm, janitorial services and other city of Seaside services.
Locally Owned Enterprise
In order to become a locally managed enterprise, CannaCruz is fully committed to hiring employees and managers from city of Seaside, training employees for all positions including management, and providing opportunities for advancement rather than hiring outside of the city of Seaside workforce.
Labor Organization
If applicable, CannaCruz will have a labor peace agreement or plan to negotiate one.
Diversity, Equity and Inclusion
Prioritizing diversity and inclusivity in hiring practices is key to success for any business. We believe that a culture of diversity, equity and inclusion (DEI) contributes to collaboration, productivity, innovation, and longevity. We aspire to build a team whose diversity reflects the community of Seaside and surrounding areas. Not only does a diverse staff respectfully represent the surrounding neighborhood, but it also strengthens our business. Inclusion of all origins, beliefs, and preferences, will bring a variety of perspectives to discussions about problem solving and new ideas.
CannaCruz is committed to providing a positive, respectful, accepting and supportive workplace. We embrace a rich and diverse workforce with diverse perspectives, work and live experiences, religious and cultural differences, all of which provide opportunities for employee development. To foster DEI, we embrace the following practices –
x Strive for a diverse workforce in hiring and recruiting. x Model DEI through management.
x Educate staff in DEI.
Non-Discrimination
CannaCruz will have a non-discrimination policy and will adhere to all applicable guidelines regarding discrimination. CannaCruz is committed to providing equal benefits.
Packet Page 167
33 SECTION G: COMMUNITY BENEFITS AND
INVESTMENTS PLAN
Economic Development
CannaCruz is a member of the Salinas Valley Chamber of Commerce and welcomes the opportunity to develop meaningful connections with city of Seaside business owners and community members.
In addition, CannaCruz supports many charitable programs. CannaCruz has contributed to Heroes of Salinas over the years and is committed to identifying other high-quality city of Seaside causes to support.
It is anticipated that CannaCruz will provide economic benefits to the city by providing permanent jobs with competitive wages and benefits, recruiting and hiring from city of Seaside, providing employee training and development.
Tax Revenue Generation
CannaCruz will benefit the city of Seaside through tax revenue generation. CannaCruz currently generates approximately $500,000 in tax revenue annually for the City of Salinas. In addition, CannaCruz generates approximately $400,000 annually for City of Santa Cruz.
City of Seaside Recruitment and Hiring
CannaCruz intends to provide economic benefits to the city of Seaside in the form of providing competitive wages and benefits, providing employee training and development, recruiting and hiring city of Seaside residents, and employing city of Seaside contractors.
Local hiring is a benefit for any business for many reasons. The city of Seaside is an ideal location for the proposed business due to its vibrant, diverse workforce. Recruitment efforts and hiring preference will be designed to give preference to city of Seaside residents. We anticipate that 100 percent of the employees who work for CannaCruz will be city of Seaside hires.
To enhance our city of Seaside recruitment efforts, we may consider a number of strategies such as participating in city of Seaside job fairs, participating in city of Seaside business organizations, and providing incentives for relocation. Some strategies that we may employ to recruit city of Seaside employees are as follows:
Local connections of principals
Outreach to city of Seaside organizations such as Chamber of Commerce Outreach to city of Seaside education centers
Packet Page 168
34 Advertising in city of Seaside media outlets
Signage at the proposed business
Partnerships With City of Seaside Vendors, Contractors, Service Providers
In addition, CannaCruz will make every effort to use city of Seaside contractors and businesses and to give preference to city of Seaside contractors and businesses who also hire city of Seaside residents and work with other city of Seaside businesses.
We intend to use as many city of Seaside professionals as possible because it makes good business sense, results in efficiency as locals have better knowledge of local regulations, is convenient, and benefits the city in which we do business.
Supplies that will be needed for the startup and operation of the proposed CannaCruz business will be purchased from city of Seaside. In addition, CannaCruz plans to employ a city of Seaside accounting firm, janitorial services and other city of Seaside services.
Locally Owned Enterprise
In order to become a locally managed enterprise, CannaCruz is fully committed to hiring employees and managers from city of Seaside, training employees for all positions including management, and providing opportunities for advancement rather than hiring outside of the city of Seaside workforce.
Employee Training and Continuing Education
In addition, CannaCruz is committed to providing employee training and support for the continuing education of its employees.
Through training outlined in its employee handbook, CannaCruz plans to provide job training and professional development for all of its employees.
We will have regular meetings to make sure that staff is updated on the evolving regulatory environment of cannabis whether it be new products, laws and regulations and anything else that maybe pertinent to the industry (local and state).
We will make every effort to train, promote and fill open positions from within our qualified staff before recruiting externally. Employees be provided paid training on the following topics:
Inventory control
Product storage and handling
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35 Track and trace software
Packaging and labeling
Security measures and procedures
Safety handling procedures
Community Support
CannaCruz currently offers discounts to all active and retired military service personnel.
CannaCruz support efforts are intended to express our intent and interest in bettering our community. We have gained insight into the ideals and concerns of our neighbors. Through mindful planning, we have devised a rich community giving program and will utilize diverse and inclusive hiring practices. We have also considered the impact our operation will have on our surroundings and practice a good neighbor policy.
Community Relations
The team knows that creating a positive relationship with our city of Seaside community is paramount to the health of our business and the community. In order to create those important ties to our neighborhood and beyond, CannaCruz will collaborate with locals and invest time in bilingual staffing to serve our diverse customer base.
Collaboration with Neighbors
CannaCruz works hard to create meaningful relationships and build community rapport. We listen to our neighbors and will work to ensure their concerns are addressed as we move forward. We will continue to check-in with the members of our community to make certain we are putting the health of our neighborhood first.
Bilingual Access
The CannaCruz team knows that many of our potential customers are Spanish speaking. In order to honor this, we have been developing ways to reach out to our bilingual community. Part of that outreach includes providing materials about CannaCruz which are printed in both English and Spanish. CannaCruz will have a Spanish speaking staff member available to ensure clear communication with our customers and neighbors.
Community Giving Program
At CannaCruz, we fully acknowledge that the legal cannabis industry has the ability to work to make positive changes in the communities in which we all operate. While our industry supplies much Packet Page 170
36 needed tax revenues, sales, excise, local business taxes, we also go the extra mile and give of our time. CannaCruz brings our staff members to critical volunteer days to make a difference.
Discounts for Veterans and Seniors
Two groups that benefit from cannabis the most are Veterans and Seniors. For those who have regular relief 49 of 70 from our topical products that reduce pain. Cannabis helps with a myriad of issues, and discounts are a way to make it easier to provide access to those who need it most. We are proud to offer discounts to these two groups. We also work hard to showcase products that are grown and manufactured by Veterans themselves, closing the loop on medicine creation to provision. Over the past three years, we have offered community discount days to our medical, elderly, and veteran customers resulting in a total of 279,666 transactions from those demographics.
Please see Table 1 for a visual analysis of these transactions.
Environmental Support
In the past, we have volunteered to assist in cleaning up our park areas. One of our favorite activities was a very successful beach-cleanup in our flagship city of Santa Cruz. We look forward to similar opportunities in Seaside.
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Rater 1 Rater 2
Business Plan (300 points) 300 300
Labor and DEI (400 pts) 400 400
Safety Plan (200 pts) 200 200
Security Plan (300 pts) 300 300
Qualifications of Owners (300pts) 300 300
Neighborhood Compatibility (300pts) 300 300
Community Benefit and Investment Plan (400pts) 200 200
Proposed Location (300pts) 300 300
TOTALS 2,300 (92%) 2,300 (92%)
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CITY OF SEASIDE
STAFF REPORT
Item No.: 10.B.
TO: City Council
FROM: Nicholas Borges, Acting City Manager
BY: Nisha Patel, Public Works Director/City Engineer
Kirstin van Gend, Administrative Analyst II
DATE: June 20, 2024
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE A PROFESSIONAL SERVICE AGREEMENT WITH
KIMLEY-HORN AND ASSOCIATES, INC. FOR DEVELOPER
PROJECT MANAGEMENT AND PLAN REVIEW SERVICES FOR
THE CAMPUS TOWN PROJECT IN AN AMOUNT NOT TO EXCEED
$230,000.00 TO BE REIMBURSED BY THE DEVELOPER
RECOMMENDATION
Adopt a resolution authorizing the City Manager to execute a professional services agreement with Kimley-Horn and Associates, Inc. for Developer Project Management and Plan Review Services for the Campus Town Project for an amount not to exceed $230,000.00 to be reimbursed by the Developer.
BACKGROUND
The Campus Town Project will construct and operate residential and commercial property as well as recreational space and roadway improvements near the freeway interchange at Lightfighter Avenue and Highway 1, bounded by Lightfighter to the north, Gigling Road to the South, 1st Avenue to the West and 8th Avenue to the East.
Due to a shortage of personnel resources, the City has had a Consultant supporting the Project Management and Plan Review aspects of the project since 2022 and continues to require these consultant services.
Kimley-Horn and Associates (Kimley-Horn) is on the City’s list of On-Call Engineering Consultants. Since 2022, Kimley-Horn has provided project management and plan review services to support the Campus Town Project for both City efforts and developer project management services. The developer project management and plan review Packet Page 181
Item No. 10.B. Page 2 of 3
services are reimbursed by the developer, KB Homes and the Bakewell Development Company (KB-B). Kimley-Horn’s contract term was from February 28, 2022, through June 30, 2024. The City Engineering staff requested a new proposal from Kimley-Horn staff to provide developer program management and plan review services related for Developer Project Management efforts only, to be reimbursed by the developer. On June 5, 2024, Kimley-Horn provided a proposal to provide the requested services in an amount not to exceed $230,000.00. Services are to be paid on a time and materials basis according to the Kimley-Horn rate schedule. The services in the proposal include Project Management, MCWD Coordination on Recycled Water, Affordable Housing Coordination, Purchase and Sale Agreement Amendment Support, Planning Support for the Implementation of Campus Town Development, Final Map(s) for Subsequent Phases for the Development of Campus Town, Improvement Plans Review, Building/Grading Permit Review, Review and Coordination of Army and Campus Town Drainage, Jurisdictional Acquisition and Coordination, and Travel and Reimbursable Expenses. The staff reviewed the proposal and found the scope and fee acceptable.
Staff recommends authorizing a professional services agreement (PSA) for Kimley-Horn to provide Developer Project Management and Plan Review services for the Campus Town Project for an amount not to exceed $230,000.00 and reimbursed by the Developer. A 10% contingency adds $23,000.00 for a total PSA amount of $253,000.00 to be charged to deposit account no. 601-2214 funded by the Developer.
FISCAL IMPACT
The professional services agreement with Kimley-Horn will have no fiscal impact on the General Fund. The City's adopted fee schedule requires the Developer to pay actual costs for plan review for commercial and multifamily developments greater than 1 acre in size. Expenses associated with the professional services agreement with Kimley-Horn will be charged to deposit account no. 601-2214 funded by the Developer.
Projects of this size and complexity have the potential to encounter unforeseen conditions requiring specialized review. Staff recommends the City Council authorize the City Manager to execute amendments to a professional services agreement in the amount of $23,000.00 to be funded by Developer deposits.
ATTACHMENTS
1. Resolution
2. Professional Services Agreement
Reviewed for Submission to the City Council by:
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Item No. 10.B. Page 3 of 3
________________________________________
Nicholas Borges, Acting City Manager
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Meeting Date: 6/20/24
Item #: X.X.
RESOLUTION NO. 24-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEASIDE
AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICE AGREEMENT WITH KIMLEY-HORN AND ASSOCIATES, INC. FOR DEVELOPER
PROJECT MANAGEMENT AND PLAN REVIEW SERVICES FOR THE CAMPUS TOWN PROJECT IN AN AMOUNT NOT TO EXCEED $230,000.00 TO BE
REIMBURSED BY THE DEVELOPER
WHEREAS, the Campus Town Project will construct and operate residential and commercial property as well as recreational space and roadway improvements near the freeway interchange at Lightfighter Avenue and Highway 1, bounded by Lightfighter to the north, Gigling road to the South, 1st Avenue to the West and 8th Avenue to the East; and
WHEREAS, due to shortage of personnel resources, the City has had a Consultant supporting the Project Management and Plan Review aspects of the project since 2022 and continues to require these consultant services; and WHEREAS, Kimley-Horn and Associates (Kimley-Horn) is on the City’s list of OnCall Engineering Consultants; and WHEREAS, since 2022, Kimley-Horn has provided project management and other services to support the Campus Town Project, including plan review and project management support to the developer, KB Homes and the Bakewall Development Company (KB-B), which was reimbursed by the developer; and WHEREAS, at the request of the City, Kimley-Horn submitted a new proposal to provide developer project management and plan review services; and WHEREAS, the staff have reviewed the proposal and finds the scope and fee acceptable.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Seaside does hereby authorize the City Manager to execute a professional services agreement with Kimley-Horn and Associates, Inc. for Developer Project Management and Plan Review Services for the Campus Town Project for an amount not to exceed $230,000.00 and written amendments such that the total agreement does not exceed $253,000.00, all to be reimbursed from the Developer deposit account (No. 601-2214).
PASSED AND ADOPTED at a Regular meeting of the City Council of the City of Seaside duly held on the 20th day of June 2024, by the following vote:
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-2
AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
ABSTAIN: COUNCIL MEMBERS
APPROVED:
_______________________________
Ian N. Oglesby, Mayor
ATTEST:
______________________________
Dominique L. Davis, City Clerk
APPROVED TO FORM:
______________________________
Sheri L. Damon, City Attorney
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CITY OF SEASIDE
PROFESSIONAL SERVICE AGREEMENT FOR
DEVELOPER PROJECT MANAGEMENT AND PLAN REVIEW
FOR THE CAMPUS TOWN PROJECT
This PROFESSIONAL SERVICE AGREEMENT (PSA) FOR NON-CONSTRUCTION PROJECT (“AGREEMENT”), is made and effective as of July 1, 2024, between the City of Seaside ("AGENCY"), a municipal corporation and Kimley-Horn and Associates, Inc., a corporation ("CONSULTANT"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
I. TERM
This AGREEMENT shall commence on July 1, 2024 and shall remain and continue in effect until tasks described herein are completed, but in no event later than June 30, 2025 unless sooner terminated pursuant to the provisions of this AGREEMENT.
II. SERVICES
CONSULTANT shall perform the tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. CONSULTANT shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A. To the extent that Exhibit A is a proposal from CONSULTANT, such proposal is incorporated only for the description of the scope of services and no other terms and conditions from any such proposal shall apply to this AGREEMENT unless specifically agreed to in writing.
III. PERFORMANCE
CONSULTANT shall at all times faithfully, competently and to the best of his/her ability, experience, and talent, perform all tasks described herein. CONSULTANT shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of CONSULTANT hereunder in meeting its obligations under this AGREEMENT.
IV. AGENCY MANAGEMENT
Agency’s Public Works Director/City Engineer and/or Project Manager shall represent the AGENCY in all matters pertaining to the administration of this AGREEMENT, review and approval of all products submitted by CONSULTANT, but not including the authority to enlarge the Tasks to Be Performed or change the compensation due to CONSULTANT. Agency’s Manager shall be authorized to act on AGENCY's behalf and to execute all necessary documents which enlarge the Packet Page 186
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Tasks to Be Performed or change CONSULTANT's compensation, subject to Section V. hereof.
V. PAYMENT
A. The AGENCY agrees to pay CONSULTANT monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit A, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks.
This amount shall not exceed Two Hundred Thirty Thousand dollars ($230,000.00) for the total term of the AGREEMENT unless additional payment is approved as provided in this AGREEMENT.
B. CONSULTANT shall not be compensated for any services rendered in connection with its performance of this AGREEMENT which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the Agency Manager. CONSULTANT shall be compensated for any additional services in the amounts and in the manner as agreed to by Agency Manager and CONSULTANT at the time AGENCY's written authorization is given to CONSULTANT for the performance of said services.
C. CONSULTANT will submit invoices monthly for actual services performed.
Invoices shall be submitted on or about the first business day of each month, or as soon thereafter as practical, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the AGENCY disputes any of CONSULTANT's fees it shall give written notice to CONSULTANT within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice. Any final payment under this AGREEMENT shall be made within forty-five (45) days of receipt of an invoice therefore.
VI. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE A. The AGENCY may at any time, for any reason, with or without cause, suspend or terminate this AGREEMENT, or any portion hereof, by serving upon the CONSULTANT at least ten (10) days prior written notice. Upon receipt of said notice, the CONSULTANT shall immediately cease all work under this AGREEMENT, unless the notice provides otherwise. If the AGENCY suspends or terminates a portion of this AGREEMENT such suspension or termination shall not make void or invalidate the remainder of this AGREEMENT.
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B. In the event this AGREEMENT is terminated pursuant to this Section, the AGENCY shall pay to CONSULTANT the actual value of the work performed up to the time of termination, provided that the work performed is of value to the AGENCY. Upon termination of the AGREEMENT pursuant to this Section, the CONSULTANT will submit an invoice to the AGENCY pursuant to Section V.
VII. DEFAULT OF CONSULTANT
A. The CONSULTANT's failure to comply with the provisions of this AGREEMENT shall constitute a default. In the event that CONSULTANT is in default for cause under the terms of this AGREEMENT, AGENCY shall have no obligation or duty to continue compensating CONSULTANT for any work performed after the date of default and can terminate this AGREEMENT immediately by written notice to the CONSULTANT. If such failure by the CONSULTANT to make progress in the performance of work hereunder arises out causes beyond the CONSULTANT's control, and without fault or negligence of the CONSULTANT, it shall not be considered a default.
B. If the Agency Manager or his/her designee determines that the CONSULTANT is in default in the performance of any of the terms or conditions of this AGREEMENT, he/she shall cause to be served upon the CONSULTANT a written notice of the default. The CONSULTANT shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the CONSULTANT fails to cure its default within such period of time or fails to present the AGENCY with a written plan for the cure of the default, the AGENCY shall have the right, notwithstanding any other provision of this AGREEMENT, to terminate this AGREEMENT without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this AGREEMENT.
VIII. OWNERSHIP OF DOCUMENTS
A. CONSULTANT shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by AGENCY that relate to the performance of services under this AGREEMENT.
CONSULTANT shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. CONSULTANT shall provide free access to the representatives of AGENCY or its designees at reasonable times to such books and records; shall give AGENCY the right to examine and audit said books and records; shall permit AGENCY to make transcripts or copies therefrom as necessary; and shall allow inspection of Packet Page 188
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all work, data, documents, proceedings, and activities related to this AGREEMENT. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment.
B. Upon completion of, or in the event of termination or suspension of this Agreement, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, computer discs, and reports prepared by the Contractor under this Agreement shall become the sole property of City and may be used, reused, or otherwise disposed of by City without the permission of Contractor. With respect to computer files, Contractor shall make available to City, at City's office and upon reasonable written request by City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files.
IX. INDEMNIFICATION AND DEFENSE
A. Indemnity
To the fullest extent permitted by law, CONSULTANT shall indemnify and hold harmless AGENCY and any and all of its officials, employees and agents (“Indemnified Parties”) from and against any and all losses, liabilities, damages, costs and expenses, including legal counsel’s fees and costs, caused in whole or in part by the negligent or wrongful act, error or omission of CONSULTANT, its officers, agents, employees or subconsultants (or any agency or individual that CONSULTANT shall bear the legal liability thereof) in the performance of services under this AGREEMENT.
CONSULTANT’s duty to indemnify and hold harmless AGENCY shall not extend to the AGENCY’s sole or active negligence.
B. Duty to defend
In the event the AGENCY, its officers, employees, agents and/or volunteers are made a party to any action, lawsuit, or other adversarial proceeding arising from the performance of the services encompassed by this AGREEMENT, and upon demand by AGENCY, CONSULTANT shall defend the AGENCY at CONSULTANT’s cost or at AGENCY’s option, to reimburse AGENCY for its costs of defense, including reasonable attorney’s fees and costs incurred in the defense of such matters to the extent the matters arise from, relate to or are caused by CONSULTANT’s negligent acts, errors or omissions. Payment by AGENCY is not a condition precedent to enforcement of this indemnity. In the event of any dispute between CONSULTANT and AGENCY, as to whether liability arises from the sole or active negligence of the AGENCY or its officers, employees, or agents, CONSULTANT will be obligated to pay for AGENCY’s defense until such time as a final judgment has been entered adjudicating the AGENCY as solely or Packet Page 189
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actively negligent. CONSULTANT will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees and costs of litigation.
X. INSURANCE
CONSULTANT shall maintain prior to the beginning of and for the duration of this AGREEMENT insurance coverage as specified in Exhibit B attached to and part of this AGREEMENT.
XI. INDEPENDENT CONSULTANT
A. CONSULTANT is and shall at all times remain as to the AGENCY a wholly independent consultant and/or independent contractor. The personnel performing the services under this AGREEMENT on behalf of CONSULTANT shall at all times be under CONSULTANT's exclusive direction and control.
Neither AGENCY nor any of its officers, employees, or agents shall have control over the conduct of CONSULTANT or any of CONSULTANT's officers, employees, or agents, except as set forth in this AGREEMENT.
CONSULTANT shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the AGENCY. CONSULTANT shall not incur or have the power to incur any debt, obligation, or liability whatever against AGENCY, or bind AGENCY in any manner.
B. No employee benefits shall be available to CONSULTANT in connection with the performance of this AGREEMENT. Except for the fees paid to CONSULTANT as provided in the AGREEMENT, AGENCY shall not pay salaries, wages, or other compensation to CONSULTANT for performing services hereunder for AGENCY. AGENCY shall not be liable for compensation or indemnification to CONSULTANT for injury or sickness arising out of performing services hereunder.
XII. LEGAL RESPONSIBILITIES
The CONSULTANT shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this AGREEMENT. The CONSULTANT shall at all times observe and comply with all such laws and regulations. The AGENCY, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the CONSULTANT to comply with this Section.
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XIII. UNDUE INFLUENCE
CONSULTANT declares and warrants that no undue influence or pressure was used against or in concert with any officer or employee of the AGENCY in connection with the award, terms or implementation of this AGREEMENT, including any method of coercion, confidential financial arrangement, or financial inducement.
No officer or employee of the AGENCY has or will receive compensation, directly or indirectly, from CONSULTANT, or from any officer, employee or agent of CONSULTANT, in connection with the award of this AGREEMENT or any work to be conducted as a result of this AGREEMENT. Violation of this Section shall be a material breach of this AGREEMENT entitling the AGENCY to any and all remedies at law or in equity.
XIV. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES
No member, officer, or employee of AGENCY, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the Project during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the Project performed under this AGREEMENT.
XV. RELEASE OF INFORMATION/CONFLICTS OF INTEREST
A. All information gained by CONSULTANT in performance of this AGREEMENT shall be considered confidential and shall not be released by CONSULTANT without AGENCY's prior written authorization. CONSULTANT, its officers, employees, agents, or subconsultants, shall not without written authorization from the Agency Manager or unless requested by the Agency Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this AGREEMENT or relating to any project or property located within the AGENCY. Response to a subpoena or court order shall not be considered "voluntary" provided CONSULTANT gives AGENCY notice of such court order or subpoena.
B. CONSULTANT shall promptly notify AGENCY should CONSULTANT, its officers, employees, agents, or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request (“Discovery”), court order, or subpoena from any person or party regarding this AGREEMENT and the work performed there under or with respect to any project or property located within the AGENCY, unless the AGENCY is a party to any lawsuit, arbitration, or administrative proceeding connected to such Discovery, or unless CONSULTANT is prohibited by law Packet Page 191
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from informing the AGENCY of such Discovery. AGENCY retains the right, but has no obligation, to represent CONSULTANT and/or be present at any deposition, hearing, or similar proceeding as allowed by law. Unless AGENCY is a party to the lawsuit, arbitration, or administrative proceeding and is adverse to CONSULTANT in such proceeding, CONSULTANT agrees to cooperate fully with AGENCY and to provide the opportunity to review any response to discovery requests provided by CONSULTANT. However, AGENCY's right to review any such response does not imply or mean the right by AGENCY to control, direct, or rewrite said response.
XVI. NOTICES
Any notices which either party may desire to give to the other party under this AGREEMENT must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice:
To AGENCY: City of Seaside_____________
_440 Harcourt Ave._________
__Seaside, CA 93955________
__Attention: City Clerk_______
To CONSULTANT: __Kimley-Horn and Associates_____________ __1100 W. Town & Country Road, Suite 700__
__Orange, CA 92868_____________________
XVII. ASSIGNMENT
The CONSULTANT shall not assign the performance of this AGREEMENT, nor any part thereof, nor any monies due hereunder, without prior written consent of the AGENCY. Because of the personal nature of the services to be rendered pursuant to this AGREEMENT, only CONSULTANT shall perform the services described in this AGREEMENT. Elizabeth A. Cobb may use assistants, under her direct supervision, to perform some of the services under this AGREEMENT.
CONSULTANT shall provide AGENCY fourteen (14) days' notice prior to the departure of Elizabeth A. Cobb from CONSULTANT's employ. Should she leave CONSULTANT's employ, the AGENCY shall have the option to immediately terminate this AGREEMENT, within three (3) days of the close of said notice period.
Upon termination of this Agreement, CONSULTANT's sole compensation shall be payment for actual services performed up to, and including, the date of termination Packet Page 192
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or as may be otherwise agreed to in writing between the Governing Board and the CONSULTANT. Before retaining or contracting with any CONSULTANT for any services under this AGREEMENT, CONSULTANT shall provide AGENCY with the identity of the proposed CONSULTANT, a copy of the proposed written contract between CONSULTANT and such sub-consultant which shall include and indemnity provision similar to the one provided herein and identifying AGENCY as an indemnified party, or an incorporation of the indemnity provision provided herein, and proof that such proposed sub-consultant carries insurance at least equal to that required by this AGREEMENT or obtain a written waiver from AGENCY for such insurance.
XVIII. LICENSES
At all times during the term of this AGREEMENT, CONSULTANT shall have in full force and effect, all licenses required of it by law for the performance of the services described in this AGREEMENT.
XIX. GOVERNING LAW
The AGENCY and CONSULTANT understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this AGREEMENT and also govern the interpretation of this Agreement. Any litigation concerning this AGREEMENT shall take place in the municipal, superior, or federal district court with jurisdiction over the AGENCY.
XX. ENTIRE AGREEMENT
This AGREEMENT contains the entire understanding between the parties relating to the obligations of the parties described in this AGREEMENT. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written and pertaining to the subject of this AGREEMENT or with respect to the terms and conditions of this AGREEMENT, are merged into this AGREEMENT and shall be of no further force or effect. Each party is entering into this AGREEMENT based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material.
XXI. CONTENTS OF REQUEST FOR PROPOSAL AND PROPOSAL
CONSULTANT is bound by the contents of AGENCY's Request for Qualifications, Exhibit C hereto and incorporated herein by this reference, and the contents of the proposal submitted by the CONSULTANT, Exhibit A hereto. In the event of conflict, the requirements of AGENCY's Request for Proposals and this AGREEMENT shall take precedence over those contained in the CONSULTANT's proposals. The Packet Page 193
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incorporation of the CONSULTANT’s proposal shall be for the scope of services to be provided only, and any other terms and conditions included in such proposal shall have no force and effect on this AGREEMENT or the relationship between CONSULTANT and/or AGENCY, unless expressly agreed to in writing.
XXII. AUTHORITY TO EXECUTE THIS AGREEMENT
The person or persons executing this AGREEMENT on behalf of CONSULTANT warrants and represents that he/she has the authority to execute this AGREEMENT on behalf of the CONSULTANT and has the authority to bind CONSULTANT to the performance of its obligations hereunder.
IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed the day and year first above written.
CONSULTANT
By:___________________ Date:___________________
Nikki Kerry, PE (CA 58449)
Principal
______________________ Date:___________________
Nicholas Borges
Acting City Manager
City of Seaside
Attachments: Exhibit A Scope of Work/Consultant Proposal Exhibit B Insurance Requirements
Exhibit C RFQ: On-Call Consultants – Engineering Services Exhibit D Resolution 22-62 Approving On-Call Engineering Services
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EXHIBIT A
SCOPE OF WORK/CONSULTANT PROPOSAL
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City of Seaside Planning & Engineering Campus Town Planning and Public Works Contract Services June 5, 2024
Submitted Electronically
Ms. Nisha Patel
City Engineer
Project Manager
CITY OF SEASIDE
440 Harcourt Avenue
Seaside, CA 93955
RE: “Campus Town – Developer Reimbursable” Contract Services, Dear Ms. Patel:
Kimley-Horn and Associates, Inc. (“Kimley-Horn” or “Consultant”) is pleased to submit to the City of Seaside (“Client”) for providing project management and general civil, planning and landscape oversight for the processing of subdivision, improvement plans, building plans and associated agreements specific to the Campus Town Redevelopment Project (“Project”) and related project efforts, located on the former Fort Ord Reuse Authority (FORA) property. This redevelopment project is understood to be undertaken by KB-Bakewell (“Applicant”) through separate agreement(s) previously negotiated and executed with the Client.
In coordination with you and staff, the scope of services fee is attached for Campus Town – “Developer Reimbursable” (Attachment 1) As directed, we have included travel as a cost under the Developer Reimbursable since the Applicant will be reimbursing these costs. Also attached is Kimley-Horn rate schedule. These scopes and fees will be set up as new contracts for all efforts and compensation going forward starting on July 1, 2024, for a 12-month period.
We appreciate the opportunity to continue efforts on Campus Town implementation and look forward to working with staff toward Phase I closing and future efforts.
Sincerely,
Elizabeth A. Cobb
Associate, Project Manager
C: Adolfo Gonzalez, City of Seaside
Kirstin van Gend, Administrative Analyst II
ATTACHMENTS:
1. Campus Town – Developer Reimbursable
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City of Seaside Planning & Engineering Campus Town Planning and Public Works Contract Services ATTACHMENT 1
Campus Town – Developer Reimbursable
SCOPE OF SERVICES
1. Project Management
a. Meeting Coordination
i. Assumes the following standing meetings:
1. Civil Meeting
2. General City Meeting
3. Army Meeting
4. Other Agencies Meetings (as required)
ii. Prepare Meeting Agendas and Notes
iii. Prepare Action Item List
b. Project Schedule
i. In coordination with City staff and Developer prepare Master schedules
1. Update Phase 1A bi-monthly.
2. Prepare schedule for Phase 1B and update bi-monthly
3. Prepare schedule for Phase 2A/B and update bi-monthly ii. Provide bi-monthly check-in updates with developer
iii. Provide bi-monthly check-in updates with City
iv. Monthly Project Tracking Report of Action that Occurred, Projected Actions for following Month and Critical Milestone Status
c. Project correspondence and documentation
i. Document city directives/decisions
ii. Document interpretations of Specific Plan.
d. Campus Town CFD Coordination
i. Provide support and required documentation needed for the city to process Campus Town CFD Annexation.
ii. Project Management and coordination
2. MCWD Coordination on recycled water
3. Affordable Housing
a. Coordinate with Builder in identifying compatible sites for off-site affordable housing. b. Coordinate with MCWD on Water Allocation
4. Purchase and Sale Agreement Amendment
a. Review and coordination with City Attorney.
b. Confirm against project development plan and assumptions. c. Title review and prepare supporting documents for requested items to be removed from title. d. Property Closing Support
i. Coordinate with city and developer the required documents needed for closing.
Developer is assumed to take lead with title and escrow company.
Packet Page 197
City of Seaside Planning & Engineering Campus Town Planning and Public Works Contract Services ATTACHMENT 1
Campus Town – Developer Reimbursable