Agenda packet — Soledad City Council, August 5, 2026 (part 2 of 2)

Soledad 2026 Slurry Seal Striping Proposal-Rev1.docx
City right-of-way (ROW) lines will not be shown on the base map, as this would require more time to research and include, and it would increase the design cost. The base map will then be used to prepare the striping plans.
• The striping plans will be prepared in accordance with the latest 2026 CA MUTCD and Caltrans Standard Plans & Specifications requirements and guidelines, as well as the Caltrans Standard Plans and Specifications (dated 2025). Roadway signage will also be adjusted/revised as necessary to match the new striping improvements.
• Only striping and signing improvements will be prepared with this design. No pavement rehabilitation improvements are included in the scope of work. • Slurry seal improvement plans are being prepared by Pavement Engineering Inc. (PEI). The signing & striping improvement plans to be prepared by TLE will be incorporated into the PEI planset. • No topographic survey work is included in our current scope of work. • No construction support services are included in our current scope of work. 131
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SCOPE OF SERVICES:

TASK 1: COORDINATION & PROJECT MANAGEMENT
As part of the project management and coordination, regular communication will be maintained with the Client and Pavement Engineering Inc. (PEI). TLE will participate in individual phone calls, team conference calls, and email correspondence as necessary to discuss and resolve project issues.

TASK 2: BASE MAP PREPARATION
TLE will import Google Earth images and size them to true scale, and then trace the linework using the Auto CAD software. The linework will include existing striping, curb, gutter, sidewalk, and medians. The existing conditions will extend far enough to show the new striping improvements and how they connect to the existing striping on either end of the corridors. The City has explained that several street segments are currently under design and/or construction, and they will provide TLE with the appropriate plans to aid in our preparation of the base map. Please note that existing City right-of-way (ROW) lines will not be shown on the base map.

TASK 3: FIELD VISIT
TLE staff will conduct a site visit to verify the existing conditions for the project street corridors.

Existing street signs and their conditions will be surveyed to determine if any signs may need to be removed or replaced due to the proposed striping improvements.

TASK 4: PREPARATION OF 90% STRIPING PLANS
Once the base map has been prepared, TLE will prepare signing & striping plans for the various project corridors. The plans will be prepared in accordance with the latest 2026 CA MUTCD requirements and guidelines, as well as the Caltrans Standard Plans and Specifications (dated 2025). Below is a list of the project corridors:

A. Barcelona Street: Mirada St to Verano St
B. Entrada Drive: West St to La Paz
C. Entrada Drive: Prado Dr to Vista Ave
D. Gabilan Drive: West St to Prado Dr
E. Gabilan Drive: Orchard Ln to end
F. Kidder Street: Front St to North St
G. Los Coches Drive: Nestles Rd to end
H. Market Street: West St to Dixi St
I. Oak Street: Monterey St to Palm Ave
J. Palm Avenue: Dixi St to 3rd St
K. Park Street: State St to Palm Ave
L. Pine Street: Monterey St to Palm Ave
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Soledad 2026 Slurry Seal Striping Proposal-Rev1.docx
M. Prado Drive: Gabilan Dr to Entrada Dr
N. Relleum Drive: Los Coches Drive to end
O. Soledad Street: Front St to Market St
P. Soledad Street: North St to Ticino St
Q. Vista Avenue: Estrella St to Entrada Dr
R. Vista De Soledad Street: Rockrose St to San Vicente Rd S. West Street: Gabilan Dr to Anderson St
Preparation of technical specifications and engineer's estimate of probable cost will also be prepared for the signing & striping improvements.

TASK 5: PREPARATION OF FINAL STRIPING PLANS
Upon receipt of City comments from the 90% submittal, TLE will make all appropriate revisions and prepare a set of Final signing & striping plans. The Final plans will be sent to the City for review and approval. Technical specifications and the engineer's estimate of probable cost will also be included in the resubmittal.
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REIMBURSABLE/ADDITIONAL SERVICES/EXCLUSIONS
Any reproduction work, other than that required for the Consultant’s in house use, and all mileage, and any package deliveries will be billed per the attached Rate and Expense Schedule as included in the fees shown in Exhibit B.

The services to be provided are those detailed in this Scope of Services (Exhibit A). All items not expressly described in this Scope of Services shall be deemed "additional services"/"extra work" and compensation shall be on a time and expense basis per the attached Rate and Expense Schedule. The following items are specifically excluded from this Scope of Work:

A. Exclusions

1. Collection of any traffic data

2. Preparation of any improvement plans other than striping and signing plans

3. Striping plans in addition to what is described in this proposal

4. Any topographic survey

5. Any site visits

6. Any in-person meetings

7. Any items of work not specifically identified in the scope of services

8. Any construction support services
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EXHIBIT B
COMPENSATION for

CITY OF SOLEDAD SLURRY SEAL PROJECT STRIPING IMPROVEMENTS Client shall compensate Consultant for the performance of the work previously described in Exhibit A, SCOPE OF SERVICES, and for such extras and additions as follows:
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Soledad 2026 Slurry Seal Striping Proposal-Rev1.docx
Pricipal Senior Associate Total Total
SCOPE OF SERVICE ITEM Engineer Engineer Engineer Hour Fee $260 $230 $210
1 Project Management & Coordination 8 8 $2,080
2 Exist Conditions Base Map Preparation
A. Barcelona St: Mirada to Verano 2 6 8 $1,900
B. Entrada Dr: West to La Paz 1 4 5 $1,180
C. Entrada Dr: Prado to Vista 1 4 5 $1,180
D. Gabilan Dr: West to Prado 2 6 8 $1,900
E. Gabilan Dr: Orchard to end 1 4 5 $1,180
F. Kidder St: Front to North 2 6 8 $1,900
G. Los Coches Dr: Nestles to end 1 4 5 $1,180
H. Market St: West to Dixi 2 6 8 $1,900
I. Oak St: Monterey to Palm 1 4 5 $1,180
J. Palm Ave: Dixi to 3rd 2 6 8 $1,900
K. Park St: State to Palm 1 4 5 $1,180
L. Pine St: Monterey to Palm 1 2 3 $720
M. Prado Dr: Gabilan to Entrada 4 16 20 $4,720
N. Relleum Dr: Los Coches to end 1 4 5 $1,180
O. Soledad St: Front to Market 1 4 5 $1,180
P. Soledad St: North to Ticino 1 2 3 $720
Q. Vista Ave: Estrella to Entrada 1 4 5 $1,180
R. Vista De Soledad St: Rockrose to San Vicente 4 12 16 $3,800 S. West St: Gabilan to Anderson 2 4 6 $1,440
3 Field Visit 12 12 24 $5,880
4 Prepare 90% Striping Plans
A. Barcelona St: Mirada to Verano 1 4 5 $1,180
B. Entrada Dr: West to La Paz 1 4 5 $1,180
C. Entrada Dr: Prado to Vista 1 4 5 $1,180
D. Gabilan Dr: West to Prado 2 8 10 $2,360
E. Gabilan Dr: Orchard to end 1 4 5 $1,180
F. Kidder St: Front to North 2 8 10 $2,360
G. Los Coches Dr: Nestles to end 2 8 10 $2,360
H. Market St: West to Dixi 4 12 16 $3,800
I. Oak St: Monterey to Palm 2 8 10 $2,360
J. Palm Ave: Dixi to 3rd 4 12 16 $3,800
K. Park St: State to Palm 2 8 10 $2,360
L. Pine St: Monterey to Palm 1 4 5 $1,180
M. Prado Dr: Gabilan to Entrada 4 16 20 $4,720
N. Relleum Dr: Los Coches to end 1 4 5 $1,180
O. Soledad St: Front to Market 2 8 10 $2,360
P. Soledad St: North to Ticino 1 4 5 $1,180
Q. Vista Ave: Estrella to Entrada 2 8 10 $2,360
R. Vista De Soledad St: Rockrose to San Vicente 8 20 28 $6,680 S. West St: Gabilan to Anderson 2 8 10 $2,360
Technical Specifications 10 10 $2,600
Cost Estimate 4 12 16 $3,800
5 Prepare Final Striping Plans 20 40 60 $14,400
Total Hours : 128 318 0 446
Staff Expenses : $33,280 $73,140 $0 $106,420
REIMBURSABLES Travel Expenses : $280
Printing, Shipping, etc. : $0
Total Cost : $106,700
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RATE AND EXPENSE SCHEDULE
(Effective through December 31, 2026. A 4%-5% rate increase will be applied at the beginning of every year.)

HOURLY RATE SCHEDULE FOR PROFESSIONAL SERVICES
Classification Rate
Principal Engineer .................................................................................................................................... $260 Senior Engineer........................................................................................................................................ $230 Associate Engineer................................................................................................................................... $210

EXPENSE SCHEDULE
Bond Copy (24"x36")..................................................................................................................... $1.50 each Color/mylar plot (small, medium)................................................................................................ $10.00 each Color/mylar plot (large) ............................................................................................................... $50.00 each Xerox copy...................................................................................................................................... $0.15 each Color xerox copy (8½ x 11 or 11 x 17)............................................................................................ $0.50 each Client-Requested Overtime........................................................................................... Hourly Rate plus 25% All other expenses, including: ...........................................................................Actual Cost plus 15% Delivery Service
Outside Printing & Reproduction (including hard-copy plans) Mileage - Auto
Outside Consultants
Filing or Permit Fees
Travel & Expenses
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SUBJECT: Receive Revised Soledad Police Department AB 481 Annual Report and Provide Direction
TO: Honorable Mayor Velazquez and City Council
FROM: Mike Rodriquez, City Attorney
MEETING DATE: August 5, 2026

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 1.

Recommendation
It is recommended that the City Council receive the Soledad Police Department’s revised AB 481 Annual Report and provide Staff with direction on publicizing the Report and bringing the same back for Council and public comment and consideration.

Executive Summary
Per Assembly Bill 481, as codified in Government Code Section 7070, et seq., in 2022 the City Council was compelled to adopt an ordinance approving policies applicable to the Police Department’s use of military equipment. After adoption of said ordinance, the City’s Police Department is required to provide the Council with an Annual Report concerning the previous year’s use of military equipment and make the report available for Council and public comment. The Report is then used by the Council as part of its annual review and renewal of the City’s Military Equipment Use Policy Ordinance (“Policy Ordinance”).

Staff submitted the Soledad Police Department’s AB 481 Annual Report 2025-2026 to the City Council on June 17, 2025, and set a public meeting for consideration and acceptance of the Report for June 17, 2026. However, subsequent to submission, Police Department Staff discovered additional equipment that had not been included in the Report, and in one case, that had not been purchased in compliance with the Department’s Policy Ordinance. A revised Report has now been prepared and is being submitted to the Council, with the expectation of setting a new public meeting date for Report consideration on September 16, 2026.

Background
Effective January 1, 2022, Assembly Bill 481 (codified in Government Code Section 7070, et seq.) requires legislative bodies to adopt ordinances approving military equipment use policies before law enforcement agencies can continue to engage in specified activities related to the use of what the state legislature has defined as “military equipment” in Government Code Section 7070. Ordinance No. 743 138
“Approving Soledad Police Department Policy Manual Policy 706-Military Equipment” was approved by the City Council on June 15, 2022. Government Code Section 7071(e)(1) states that a governing body shall review any ordinance it has adopted pursuant to this section approving the funding, acquisition, or use of military equipment at least annually and, subject to paragraph (e)(2), vote on whether to renew the ordinance at a regular meeting.

Government Code Section 7072 also provides that any law enforcement agency that receives approval for a military use policy pursuant to Section 7071 shall submit to the governing body an annual military equipment report for each type of military equipment approved. The Annual Report is meant to provide yearly information about each type of military equipment that was approved by Council. The report contains a summary of how the equipment is used (if at all), any complaints or concerns received about the equipment, and any associated costs related to the equipment’s use. The law enforcement agency shall also make each annual military equipment report required by this section publicly available on its internet website.

After submitting an annual military equipment report to its governing body and making said report and related documents available to the public for review for a minimum of 30 days, the law enforcement agency is required to hold at least one well-publicized meeting at which the general public may discuss and ask questions regarding the report and the law enforcement agency’s funding, acquisition or use of military equipment.

Review & Analysis
The Police Department submitted its AB 481 Annual Report 2025-2026 in accordance with the foregoing process on June 17, 2026. The public meeting for consideration and acceptance of the Report, as well as renewal of the City’s Policy Ordinance, was set for the regular City Council meeting on July 15, 2026.

However, subsequent to submission of its Report, the Police Department discovered that it was in the possession of two sets of equipment that had not been previously disclosed. The first set of equipment, six 870 magnum 12 gauge “less lethal” shotguns and 330 rounds of ammunition (beanbag like projectiles), has been stored in the police department’s armory for over 20 years and never deployed. With significant turnover in the Department over the last few decades, it appears that this equipment was forgotten. The equipment was purchased as a less lethal alternative to standard weapons when a subject poses an immediate threat of injury, is armed, is violently resisting, or is attempting to access a weapon. Department personnel have confirmed that all of the shotguns are in good condition and are in working order. This equipment, purchased prior to the adoption of AB 481, is grandfathered into the City’s inventory of military equipment and does not need specific council approval.

The second set of equipment, two FN Herstal 303 Less Lethal Launchers (“Launchers”) and 760 rounds of ammunition was purchased in December of 2025, without adherence to Police Department policy.

The Launchers, which can be used to deploy two different kinds of projectiles, are meant to be used in circumstances where lethal force is not authorized, necessary, or appropriate. The first type of projectile can be used to provide blunt force to specific body areas, similar to the beanbags referenced above, while a second alternative type of projectile bursts upon striking a subject and releases a synthetic form of pepper powder that causes immediate eye closure, respiratory distress, and mucous membrane irritation and burning. No explanation has been given for why provisions of the Department’s Policy Ordinance were not followed for the acquisition of this equipment. Since acquisition and use of this equipment was never approved, it has been sidelined until the Council retroactively considers and provides acceptance.
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Attachment 1 - AB 481 Annual Report 2025-2026
The City’s Police Department has now prepared a revised version of its 2025-2026 AB 481 Annual Report including the aforementioned equipment, a copy of which is attached hereto as Attachment 1.

No action needs to be taken this evening other than to accept the report, direct that it be posted on the Police Department and City’s websites, and direct that the “meeting” to allow public questions and input on the Report be scheduled for the August 16 Council meeting. The Council is also free to ask any questions it may have regarding the Annual Report.

Financial Considerations
There are no financial impacts associated with the submission of the Police Department’s AB 481 Annual Report.

Strategic Plan Alignment
Consideration and adoption of the revised AB 481 Annual Report and renewal of the adoption of the City’s Ordinance approving policies applicable to the Police Department’s use of military equipment is consistent with Soledad Strategic Plan Goal 6.1-Strengthen Community Trust and Public Safety through Partnership and Community Policing, and Objective 6.1.1-Strengthen relationships between police and residents, by increasing transparency with respect to the purchase and use of military equipment for law enforcement purposes. The involved annual review process allows the public to ascertain information about and provide input on the acquisition, use and maintenance costs associated with such equipment.

Alternatives
Accept the revised AB 481 Annual Report and provide direction to Staff concerning publicizing the report for public review and comment.

Do not accept the Report and provide alternative direction to Staff. This is not recommended as the acceptance of the Report is a prerequisite to subsequent action that must be taken by the City concerning the City’s Military Equipment Ordinance.

Planning/CEQA
Submission of the Police Department’s AB 481 Annual Report is exempt from the California Environmental Quality Act (“CEQA”). Said action is not a “project” within the meaning of Section 15378 of the State CEQA Guidelines since there is no potential for the action to result in direct or indirect physical change to the environment. In addition, the action is not subject to CEQA pursuant to State CEQA Guidelines Section 15061, as it can be seen with certainty that there is no possibility it may have a significant effect on the environment.

Public Notice Requirements
The City will provide notice regarding the public meeting to consider the Military Equipment Policy and Annual Military Report in accordance with applicable law.

Attachment(s):
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Soledad Police Department
AB 481 Annual Report 2025-2026
Annual Report
AB 481 requires the Police Department to provide the City Council and the public with a report outlining how the military equipment possessed and/or acquired by the City during the previous year was used in order to ensure the police department is adhering to its policy and the City ordinance concerning military equipment. This is the first year that the Department has listed its drones, acquired in 2022 and 2026, as military equipment. See New Sections 3 and 4 and Note at end of report, all marked with *.

1. M16A2 Commando 5.56 patrol carbine rifles
A. A summary of how the military equipment was used and the purpose of its use.

These weapons may be deployed in circumstances in which an officer can articulate a reasonable expectation that the rifle may be needed. (E.g., where an officer anticipates an armed encounter, need for long range fire, where an officer believes a suspect may be wearing body armor). Use of the ammunition for these weapons requires special training by POST certified trainers.

B. A summary of any complaints or concerns received concerning the military equipment. None.

C. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. None.

D. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the year following submission of the annual military equipment report. Minimal maintenance and training costs, paid for out of Police Department Budget.

E. The quantity possessed of each type of military equipment. Thirteen.

F. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment. None.

2. Ammunition for M16A2 Commando 5.56 patrol carbine rifles A. A summary of how the military equipment was used and the purpose of its use. Used for target practice only.

B. A summary of any complaints or concerns received concerning the military equipment. None.

C. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. None.

E. The quantity possessed of each type of military equipment. 7,559 +/- rounds. 141
F. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment. None.

3. *Unmanned Aerial System (UAS) (aka “drones”). The Soledad Police Department operates one Skydio X2 UAS. The UAS is an unmanned, remotely powered and piloted aerial system that can sustain direct flight, designed for gathering information via photograph, recording or other means. The UAS is equipped with a Forward Looking Infrared (FLIR) and optical zoom lenses.

A. A summary of how the military equipment was used and the purpose of its use. The Soledad Police Department uses the UAS for law enforcement operations to preserve and enhance public safety. The UAS can be deployed when an overhead view would assist officers or incident commanders with planning and responding to situations such as:
a. Public safety and life preservation missions including, but not limited to, barricaded suspects, hostage situations, active shooters, apprehension of armed and dangerous fleeing suspects, and during the execution of search warrants. b. Major traffic collision investigations.
c. Natural disaster management or disaster response and recovery. d. Mass casualty events.
e. Search for lost or missing persons or rescue events. f. Suspected explosive devices.
g. Post-incident crime scene preservation and documentation. h. Pursuant to a search warrant.
i. Anytime a UAS would enhance public safety and improve operational safety. j. Anti-UAV operations when a person is operating a UAV in a manner which impedes emergency personnel who, in the course of their duties, are coping with an emergency (refer to Penal Code 402(a)(2)).
k. Training missions.
l. Mutual aid support or training missions in support of Soledad CALFIRE when the underlying mission meets the uses outlined in policy. Unmanned aerial systems used by the Soledad Police Department are used in compliance with all federal, state, and local laws.
m. Special Events.

In Fiscal Year 2025/2026 the drone has a total of 13 flights, one of which was for training.

B. A summary of any complaints or concerns received concerning the military equipment.

None.

C. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. None.

D. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the year following submission of the annual military equipment report. There have been two pilots who have been sent to UAV certification training, which had a total one-time 142
cost of $350. This was done in order for both pilots to be in compliance to fly both department owned UAV(s).

E. The quantity possessed of each type of military equipment. One.

4. *Unmanned Aerial System (UAS) (aka “drones”). The Soledad Police Department operates one DJI Avata 2 FPV UAS. This UAS is an unmanned, remotely powered and piloted aerial system that can sustain direct flight, designed for gathering information via photograph, recording or other means. The Avata 2 UAS is a smaller drone that is flown remotely in FPV (First-Person View) mode. FPV is where the pilot wears FPV goggles that receive a live, real-time video feed transmitted directly from the drone's onboard camera.

A. A summary of how the military equipment was used and the purpose of its use. The Soledad Police Department uses this UAS for law enforcement operations to preserve and enhance public safety. The UAS is compact enough to be flown inside buildings and can be used to visually clear the interior of a building prior to sending in police personnel. The UAS can be deployed when an overhead view would assist officers or incident commanders with planning and responding to situations such as:
a. Public safety and life preservation missions including, but not limited to, barricaded suspects, hostage situations, active shooters, apprehension of armed and dangerous fleeing suspects, and during the execution of search warrants. b. Major traffic collision investigations.
c. Natural disaster management or disaster response and recovery. d. Mass casualty events.
e. Search for lost or missing persons or rescue events. f. Suspected explosive devices.
g. Post-incident crime scene preservation and documentation. h. Pursuant to a search warrant.
i. Anytime a UAS would enhance public safety and improve operational safety. j. Anti-UAV operations when a person is operating a UAV in a manner which impedes emergency personnel who, in the course of their duties, are coping with an emergency (refer to Penal Code 402(a)(2)).
k. Training missions.
l. Mutual aid support or training missions in support of Soledad CALFIRE Department when the underlying mission meets the uses outlined in policy.

Unmanned aerial systems used by the Soledad Police Department are used in compliance with all federal, state, and local laws.
m. Special Events.

The Avata 2 has not been deployed since its acquisition.

B. A summary of any complaints or concerns received concerning the military equipment.

None.

C. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. None.

E. The quantity possessed of each type of military equipment. One.

5. *FN Herstal 303 Less Lethal Launcher
A. A summary of how the military equipment was used and the purpose of its use. This launcher may be used to reduce the likelihood of further escalation in situations where lethal force is not authorized, necessary, or appropriate. The OC powder may be effective in controlling, deterring, or dispersing individuals engaged in violent or disruptive behavior. The FN Herstal 303 Less Lethal Launchers have not been deployed since acquisition.

B. A summary of any complaints or concerns received concerning the military equipment. None.

C. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. None.

D. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the year following submission of the annual military equipment report. The total cost for both Less Lethal Launchers was $3,677.21, paid for out of Police Department Budget.

E. The quantity possessed of each type of military equipment. Two.

F. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment. None.

6. *Ammunition for FN Herstal 303 Less Lethal Launcher
A. A summary of how the military equipment was used and the purpose of its use. The FN Herstal 303 Less Lethal Launcher has the ability to discharge two different types of projectiles. One being the PAVA/OC projectile which releases PAVA powder (0.5% PAVA being the active ingredient in this OC powder) and the other a clear impact projectile, intended for training, distraction, or pointspecific impact. These projectiles are a small .68 caliber plastic sphere that burst on impact.

B. A summary of any complaints or concerns received concerning the military equipment. None.

C. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. None.

D. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the year following submission of the annual military equipment report. The total cost for all ammunition was $4,423.05, paid for out of Police Department Budget.

E. The quantity possessed of each type of military equipment. 310 clear impact projectiles and 450 PAVA/OC projectiles.
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F. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment. None.

7. Remington 870 Police Magnum 12 gauge Less Lethal Shotguns A. A summary of how the military equipment was used and the purpose of its use. This equipment has been stored in the police department armory for over 20 years and never deployed. The police department’s Firearms Armeror has confirmed all shotguns are in good condition and are in working order. This shotgun may be used by trained officers when a subject poses an immediate threat of injury, is actively assaultive, armed, violently resisting, or attempting to access a weapon.

This shotgun is a specially designated shotgun that fires a bean bag round and contains a small fabric pouch filled with lead shot. Upon impact, the pouch transfers blunt force to the subject, creating pain and temporary physical disruption intended to stop dangerous behavior and gain compliance.

B. A summary of any complaints or concerns received concerning the military equipment. None.

C. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. None.

D. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the year following submission of the annual military equipment report. There is no record to indicate what the purchase price was for these items.

E. The quantity possessed of each type of military equipment. Six.

F. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment. None.

8. Ammunition for Remington 870 Police Magnum 12 gauge Less Lethal Shotguns A. A summary of how the military equipment was used and the purpose of its use. This item (bean bag ammunition) has not been used and will only be used for target practice only.

B. A summary of any complaints or concerns received concerning the military equipment. None.

C. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. None.

D. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the year following submission of the annual military equipment report. There is no record to indicate what the purchase price was for this item.

E. The quantity possessed of each type of military equipment. 330.

F. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment. None. 145
* This equipment was purchased and used by the Police Department without compliance with Soledad Police Department Policy Manual Policy 709-Military Equipment. The City is disclosing non-compliance in accordance with law, and describing the use of the equipment for the sake of transparency. Further use of the equipment is currently prohibited until the Department has achieved compliance with those portions of the City’s policy that require Council approval for the acquisition and use of military equipment. 146
SUBJECT: Ordinance No. 783, An Ordinance Of The City Council of the City of Soledad Retroactively Authorizing the Purchase and Use of Two FN Herstal 303 Less Lethal Launchers and Ammunition and Making Findings in Compliance With Soledad Police Department Policy Manual 709-Military Equipment
TO: Honorable Mayor Velazquez and City Council
FROM: Mike Rodriquez, City Attorney
MEETING DATE: August 5, 2026

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 2.

Recommendation
It is recommended that the City Council waive reading, introduce and read by title only “An Ordinance of the City Council of the City of Soledad Retroactively Authorizing the Purchase and Use of Two FN Herstal 303 Less Lethal Launchers and Ammunition and Making Findings in Compliance with Soledad Police Department Policy Manual 709-Military Equipment.” Executive Summary
On June 15, 2022, the Soledad City Council adopted Ordinance No. 743 approving Soledad Police Department Policy Manual Policy 709-Military Equipment which imposes a number of requirements on the City and Police Department with respect to the acquisition and use of military equipment.

Pursuant to Government Code Section 7071 and Soledad Police Department Policy Manual Policy 709, a law enforcement agency must obtain approval of the City Council by ordinance prior to acquiring military equipment. Notwithstanding, in December of 2025, the Police Department purchased two FN Herstal 303 Less Lethal Launchers and ammunition for the police department’s use without going through the mandatory purchase protocol established by law, ordinance and Policy 709. The launchers, used as an alternative to circumstances when the use of deadly force is not justified or desirable, fire projectiles which either deliver point specific impact or a synthetic form of pepper spray. In order to rectify this mistake, the City is now seeking retroactive approval of the acquisition and use of the launchers and ammunition by ordinance. Use of the launchers will be prohibited until it is approved by the City Council.

Background
On June 25, 2022, in accordance with AB 481, the Soledad City Council adopted Ordinance No. 743 approving Soledad Police Department Manual Policy 709-Military Equipment. Policy 709 establishes 147
a military equipment use protocol that is consistent with the Department’s current practices, complies with the requirements of the Government Code, ensures regulation and compliance with relevant law on an ongoing basis, and provides a means for community engagement and transparency regarding the use of military equipment. Annual reports concerning the Department’s military equipment have been prepared and approved at public meetings on an ongoing basis, and Ordinance No. 743 has been renewed by resolution every year since its adoption.

In preparing this year’s Annual Military Equipment Report, staff discovered that the City has several types of older military equipment that were omitted from previous reports as well as newly purchased equipment that was acquired without going through the proper process. The first grouping of such equipment, a Skydio X2 UAS drone purchased in 2022 and a DJI Avata 2 FPV UAS drone purchased in 2026, were the subject of a staff report brought before the Council on July 1. 2026. The second reading of an ordinance retroactively approving the purchase of the Avata 2 drone is pending. (The Skydio Drone is no longer working and is scheduled to be surplused so consent for use is unnecessary.) Subsequent to the July 1 meeting, the Police Department located a second grouping of undisclosed or unauthorized equipment - “less lethal” shotguns and launchers and ammunition for the same. The first set of equipment, six (6) 870 magnum 12 gauge “less lethal” shotguns and 330 rounds of projectiles (beanbags), has been stored in the police department armory for over 20 years and never deployed.

With significant turnover in the Department over the last few decades, it appears that this equipment was forgotten. The equipment was purchased as a less lethal alternative to standard weapons to be used when a subject poses an immediate threat of injury, is armed, is violently resisting, or is attempting to access a weapon. Department personnel have confirmed that all of the shotguns are in good condition and are in working order. This equipment, purchased prior to the adoption of AB 481, is grandfathered into the City’s inventory of military equipment and does not need specific council approval.

The second set of equipment, two FN Herstal 303 Less Lethal Launchers (“Launchers”) and 760 rounds of ammunition (projectiles) was purchased in December of 2025, without adherence to Police Department Policy. No explanation has been offered for why the Department’s military equipment policy was not used for the acquisition of this equipment.

Both forms of less lethal launchers have been added to the Soledad Police Department AB 481 Annual Report for 2025-26 for transparency purposes. The Department is prohibited from using the Herstal Launchers until the City Council has retroactively approved acquisition and use of the same.

Review & Analysis
Pursuant to Government Code Section 7071 and Policy 709, a law enforcement agency must obtain the City Council’s approval, by ordinance, prior to acquiring military equipment. Notwithstanding, in December of 2025, the Soledad Police Department purchased two launchers and 760 projectiles without going through the required approval process. Although there is no clear explanation for this mistake, it appears that there may have been some confusion about the timing of Council approval.

The Launchers, which can be used to deploy two different kinds of projectiles, are meant to be used in circumstances where lethal force is not authorized, necessary, or appropriate. Of the two types of projectiles that can be used with the Launchers, the first type provide the delivery of specific blunt force while the second type bursts upon striking a subject and releases a synthetic form of pepper powder that causes immediate eye closure, respiratory distress, and mucous membrane irritation and burning.

Taken as a whole, this less lethal system allows officers to address violent, assaultive or actively 148
resistant behavior from a safer distance, minimizing the need for close physical contact and reducing the risk of injury to officers, the involved subjects, and bystanders.

The total cost of the Launchers and projectiles was $8,100.26. This price falls well below the City’s threshold requiring purchases by bids. See Soledad Municipal Code Section 3.24.040.

Use of the Launchers will be subject to Soledad Police Department Policies 300-Use of Force and 308- Control Devices and Techniques, copies of which are attached hereto as Attachments A and B, to gauge the amount of force to be used under specific circumstances and utilize control devices such as nonlethal projectiles to control violent or potentially violent subjects. All use must comply with all Soledad Police Department Policies and relevant laws concerning use of force.

Staff has prepared an Ordinance for Council’s consideration that after incorporating the facts set forth above, retroactively authorizes the purchase of the FN Herstal 303 Less Lethal Launchers and 760 projectiles. The Ordinance also directs the Police Department’s Military Equipment Coordinator to incorporate this purchase, information concerning the use of the equipment, and other relevant data into the Police Department’s Fiscal Year 2025-2026 Annual Military Equipment Use Report. (This information has already been incorporated into the 2025-2026 Report.) As was noted above, until the Council retroactively approves the acquisition of the Launchers and ammunition, they may not be used by the Department.

Ordinance No. 2026-156 is before the Council this evening for waiver of reading, introduction and reading by title only. If introduced, a public hearing concerning adoption of the Ordinance will be scheduled for August 16, 2026, the same date that the Police Department’s Annual Military Equipment Report and the Ordinance retroactively approving the purchase of Avata 2 FPV UAS drone will come before the Council.

Financial Considerations
The FN Herstal 303 Less Lethal Launchers and ammunition have already been purchased at a cost of $8,100.26. No further expenditures are authorized by the action before the Council.

Strategic Plan Alignment
Approval of acquisition of the Herstal Less Lethal Launchers and ammunition is consistent with Soledad Strategic Plan Objective Goal 6.2.2-Modernize technology to enhance department capacity.

The Launchers provide the Department with two new force options to respond to violent and dangerous conduct when the use of deadly force may not be justified or desirable. Said tools provide for greater safety to officers, citizens, and the subjects of police force.

Additionally, compliance with procurement procedures associated with military equipment is consistent with Soledad Strategic Plan Goal 6.1-Strengthen Community Trust and Public Safety through Partnership and Community Policing, and Objective 6.1.1-Strengthen relationships between police and residents, by increasing transparency with respect to the purchase and use of military equipment for law enforcement purposes. Retroactive application of the City’s rules and procedures provides assurance to the community that the City is committed to its policies and willing to disclose and correct mistakes when possible.

Alternatives
Introduce Ordinance No. 783.
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Ordinance No. 783
Policy 300 - Use of Force
Policy 308 - Control Devices and Techniques
Do not introduce Ordinance No. 783. This is not recommended as the launchers have already been purchased and are in use by many other police departments as an effective tool in responding to violent, assaultive and resistant behavior.

Planning/CEQA
Approval of the Ordinance is exempt from environmental review under the general rule in California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3) that CEQA only applies to projects that have the potential for causing a significant effect on the environment. As a purchase of equipment for law enforcement purposes, it can be seen with certainty that there is no possibility that this Ordinance will have a significant effect on the environment.

Public Notice Requirements
A public notice for the second reading of Ordinance No. 783 will be scheduled if the ordinance is introduced this evening.

Attachment(s):
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ORDINANCE NO. 2026-783

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOLEDAD

RETROACTIVELY AUTHORIZING THE PURCHASE AND USE OF TWO FN HERSTAL 303 LESS LETHAL LAUNCHERS AND AMMUNITION AND MAKING

FINDINGS IN COMPLIANCE WITH SOLEDAD POLICE DEPARTMENT POLICY MANUAL POLICY 709-MILITARY EQUIPMENT
WHEREAS, Government Code Section 7071 et seq. codifies Assembly Bill 481 and requires legislative bodies to adopt ordinances approving the purchase and use of military equipment; and
WHEREAS, on June 15, 2022, the Soledad City Council adopted Ordinance No. 743 approving Soledad Police Department Policy Manual Policy 709- Military Equipment which included an inventory of the Police Department’s limited amount of military equipment and procedures for use and maintenance of the same; and
WHEREAS, Soledad Police Department Policy Manual Policy 709 establishes a military equipment use policy that is consistent with the Police Department’s current practices, complies with the requirements of the Government Code, ensures ongoing regulation and compliance with AB 481, and continues to provide a means of community engagement and transparency regarding the use of military equipment by the Department; and
WHEREAS, since 2023, the City has reviewed and approved by resolution yearly Military Equipment Use Reports prepared by the Police Department, and has renewed Ordinance No. 743 on an annual basis; and
WHEREAS, pursuant to Government Code Section 7071, a law enforcement agency must obtain approval of the City Council by ordinance prior to acquiring military equipment; and WHEREAS, notwithstanding the foregoing, on December 11, 2025, the City purchased two FN Herstal 303 Less Lethal Launchers and ammunition (760 projectiles) for the police department’s use without going through the mandatory purchase protocol established by law, ordinance, and Policy 709; and
WHEREAS, the Launchers, which can be used to deploy two different kinds of projectiles, are meant to be used in circumstances where lethal force is not authorized, necessary, or appropriate. The first set of projectiles provide specific blunt force upon impact, while a second alternative form of projectiles bursts upon striking a subject and releases a synthetic form of pepper powder that causes immediate eye closure, respiratory distress, and mucous membrane irritation and burning; and
WHEREAS, despite the fact that the Launchers and ammunition were purchased in December of 2025, they have yet to be deployed by the Soledad Police Department; and 151
WHEREAS, Staff is now seeking retroactive approval of the purchase and subsequent use of the Launchers and ammunition.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SOLEDAD DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Findings. All of the recitals set forth above are true and correct and by this reference are adopted as findings of the City Council as though set forth in full within the body of this ordinance.

SECTION 2. Acceptance of Police Department Representations. The City Council acknowledges receipt of and accepts the following representations from the Soledad Police Department concerning the Department’s acquisition and use of the FN Herstal 303 Less Lethal Launchers

1. The Police Department has previously established its desire to utilize less lethal means of responding to violent, assaultive or actively resistant conduct.

2. The Department is committed to using the Herstal Launchers and projectiles in accordance with Soledad Police Department Policies 300 and 308 as an additional force option when verbal de-escalation and other control techniques are ineffective and where the use of deadly force is not justified or desirable. Proposed uses include when officers wish to respond to violent conduct or behavior from a safe distance, lowering the risk of harm to officers, bystanders and involved subjects, and for other high-risk incidents, such as civil disturbances or situations involving multiple subjects.

3. The cost of the Launchers and ammunition was $8,100.26

4. In using the Launchers, the City will comply with all Soledad Police Department Policies and relevant laws.

5. The Launchers will only be deployed by officers who have received proper training in the use of such equipment.

SECTION 3. Retroactive Approval of Purchase. After due consideration of the Police Department’s Request, any public comment provided on the matter, and the representations set forth in this ordinance, the City Council hereby retroactively approves the purchase of two FN Herstal 303 Less Lethal Launchers and ammunition (760 projectiles) for a cost of Eight Thousand, One Hundred Dollars and Twenty-Six Cents ($8,100.26). Section 3.24.040 of the Soledad Municipal Code exempts this purchase from bid procedures since the cost is below the established $50,000 bid threshold.

SECTION 4. Post Purchase Responsibilities. The Military Equipment Coordinator and Staff are directed to incorporate this purchase, information concerning the use of the equipment, and other relevant data in the Police Department’s Fiscal Year 2025-2026 Annual Military Equipment Use Report.

SECTION 5. Severability. Every section, paragraph, clause, and phrase of this Ordinance is hereby declared severable. If, for any reason, any section, paragraph, clause, or phrase is held to 152
be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining section, paragraphs, clauses, or phrases.

SECTION 6. CEQA. Approval of this ordinance is exempt from environmental review under the general rule in California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3) that CEQA only applies to projects that have the potential for causing a significant effect on the environment. As a purchase of equipment for law enforcement purposes, it can be seen with certainty that there is no possibility that this Ordinance will have a significant effect on the environment.

SECTION 5. Effective Date. This Ordinance shall take effect thirty (30) days following its final passage. The City Clerk is directed to cause copies of this Ordinance to be posted or published as required by Government Code Section 36933.

This Ordinance was introduced and first read by the City Council of the City of Soledad at a regular meeting on the 5th day of August, 2026 and PASSED AND ADOPTED by the City Council of the City of Soledad at a regular meeting on August ___ by the following vote:

AYES, and in favor thereof, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

Anna Velazquez, The Honorable Mayor
ATTEST:
_______________________________
Megan Hunter, City Clerk
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SUBJECT: Resolution No. 6401 , A Resolution of the City Council of the City of Soledad Authorizing the City Manager to Execute an Exclusive Negotiating Agreement with Sharad Patel and Porus Ahir for the Potential Development of City-Owned Property Generally Located Between Front Street and the HWY 146 Off-Ramp
TO: Honorable Mayor Velazquez and City Council
FROM: Beatriz Trujillo, Community Development Director, and Ariana Mora, Senior Planner
MEETING DATE: August 5, 2026

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 3.

Recommendation
It is recommended that the City Council of the City of Soledad consider and approve Resolution No. 6401, "Authorizing the City Manager to Execute an Exclusive Negotiating Agreement with Sharad Patel and Porus Ahir for the Potential Development of City-Owned Property Generally Located Between Front Street and the HWY 146 Off-Ramp."
Executive Summary
The City Council is being asked to authorize the City Manager to execute an Exclusive Negotiating Agreement (ENA) with Sharad Patel and Porus Ahir (Developers) for the potential sale of approximately 0.91 acres of City-owned property located between Front Street and the Highway 146 off-ramp (Property), adjacent to the Santa Elena Mobile Home Park. The proposed agreement would create an exclusive negotiating period for the City and the Developers to evaluate project feasibility and negotiate potential development terms. It would not commit the City to sell the Property or approve any project. The Property has attracted interest as part of a broader economic development opportunity involving an adjacent privately owned parcel controlled by the Developers. The City has completed the requirements of the California Surplus Land Act, allowing it to proceed with negotiations regarding the potential disposition and redevelopment of the Property.

Background
The City owns approximately 0.91 acres of vacant and undeveloped property generally located between Front Street and the Highway 146 off-ramp, immediately adjacent to the Santa Elena Mobile Home Park. The Property is identified as Parcel A in Attachment 1. It has remained undeveloped since it was conveyed to the City on July 10, 2010, following Caltrans' relinquishment of excess right-of-way 169
associated with the construction of Highway 146 and the southbound U.S. Highway 101 interchange improvements. The Property is adjacent to a privately owned two-acre parcel owned by Sharad Patel and Porus Ahir for a potential development project. The Developer has expressed interest in acquiring the City's property to create a larger and more cohesive development site. Due to the City's parcel having a narrow configuration and limited independent access, coordinated development with the adjoining property presents a practical opportunity to maximize the site's development potential.

The Property is zoned H-C (Highway Commercial) and is designated within the 2012 Downtown Specific Plan as part of the Gateway Zone, an area intended to accommodate highway-oriented retail, restaurants, lodging, office, personal services, and residential uses. Its location at one of the City's primary gateways makes it well suited for future commercial development that supports the City's economic development goals. Because the Property is no longer necessary for municipal purposes, the City Council previously declared it surplus land pursuant to the California Surplus Land Act (Government Code Section 54220 et seq.) through Resolution No. 6048. Following that action, the City finalized all required Surplus Land Act procedures with the California Department of Housing and Community Development (HCD), as required by State law. The required notice period and statutory negotiation process have concluded, satisfying the City's obligations under the Surplus Land Act. With those requirements complete, the City is now positioned to evaluate redevelopment opportunities for the Property through an Exclusive Negotiating Agreement (ENA).

Review & Analysis
The proposed ENA represents the next step toward facilitating the potential redevelopment of the Property following the City's completion of the California Surplus Land Act process. The purpose of the ENA is to establish an exclusive period during which the City and Developers may collaboratively evaluate the feasibility of redeveloping the Property and negotiate the terms of a potential Purchase and Sale Agreement. The ENA provides both parties with sufficient time to conduct due diligence, evaluate project feasibility, and determine whether mutually acceptable business terms can be reached before either party commits to a final agreement.

During the term of the ENA, the developer is expected to:

Conduct site due diligence and technical investigations; Prepare conceptual development plans and site layouts;
Evaluate infrastructure improvements, utilities, circulation, and access requirements; Coordinate access, reciprocal easements, and integrated site planning; Analyze project financing, market conditions, and economic feasibility; Coordinate with City staff regarding zoning, permitting, environmental review, and development standards; and
Negotiate the terms of a potential Purchase and Sale Agreement for future City Council consideration.

The Property's narrow configuration and limited direct access present development challenges if developed independently. However, when considered together with the adjoining property, the site presents a unique opportunity for a coordinated commercial development consistent with the Highway Commercial zoning designation and the Downtown Specific Plan's Gateway Zone vision. A coordinated project would allow for improved site planning, shared access, enhanced circulation, and more efficient utilization of both properties.

Execution of the ENA allows the City and the developer to work collaboratively while preserving the 170
City's discretion over the future disposition of the Property. The agreement provides the developer with the certainty necessary to invest in engineering studies, environmental analysis, market evaluations, and preliminary design work without requiring the City to commit to a final transaction.

Approval of the ENA does not:

Convey ownership or any legal interest in the Property; Grant vested development rights;
Commit the City to sell or lease the Property;
Approve a development project or land use entitlement;
Commit City financial resources; or
Guarantee that a final development agreement will be reached.

If negotiations result in a mutually acceptable proposal, staff will return to the City Council with a proposed Purchase and Sale Agreement or other implementing agreement for consideration at a future public meeting. Any proposed development will remain subject to CEQA, applicable zoning regulations, public hearings, and all required discretionary approvals. If negotiations are unsuccessful, the Exclusive Negotiating Agreement will expire without further obligation to either party.

Financial Considerations
Approval of the ENA will have no fiscal impact on the City’s General Fund. The developer has established and funded a Developer Account which will be used to reimburse the City for all projectrelated expenses incurred in connection with the negotiation and implementation of the ENA. These expenses may include due diligence, technical studies, consultant services, legal review, and other costs associated with the proposed development.

The ENA does not obligate the City to sell the property, provide financial assistance, or expend public funds. Any future Purchase and Sale Agreement, Disposition and Development Agreement, or other implementing agreement with financial implications will be presented to the City Council for separate consideration and approval.

Strategic Plan Alignment
Approval of the Exclusive Negotiating Agreement advances the City Council's Strategic Plan by facilitating the potential redevelopment of an underutilized City-owned property. The proposed action supports Goal 1.1.3, Redevelop underutilized sites to support light industrial, office, and retail growth, by creating an opportunity for new commercial investment and economic development. The ENA also supports Goal 1.2.2, Redevelop underutilized properties to construct a major hotel to strengthen tourism, by providing a framework to evaluate a potential hotel or mixed-use development that could enhance tourism, generate transient occupancy tax (TOT) revenue, create jobs, and strengthen the City's economic base. While the ENA does not approve a specific development project, it represents an important first step toward achieving these long-term strategic objectives.

Alternatives
Approve Resolution No. 6401, Authorizing the City Manager to Execute an Exclusive Negotiating Agreement; or
Deny Resolution No. 6401 and provide direction to staff. 171
Resolution No. 6401
Exhibit A - ENA HWY 146 Property
Attachment 1 - Map of City Property Off HWY 146
Planning/CEQA
Approval of the Exclusive Negotiating Agreement is not a project subject to the California Environmental Quality Act pursuant to CEQA Guidelines Section 15378 because it is an organizational and administrative activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment. The action is also exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption), because it can be seen with certainty that execution of the ENA has no possibility of causing a significant effect on the environment. Any future development proposal resulting from the ENA will be subject to separate environmental review under CEQA before any discretionary approvals are granted.

Public Notice Requirements
Not Applicable.

Attachment(s):
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RESOLUTION NO. 6401

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLEDAD

AUTHORIZING THE CITY MANAGER TO EXECUTE AN EXCLUSIVE

NEGOTIATING AGREEMENT WITH SHARAD PATEL AND PORUS AHIR FOR THE

POTENTIAL DEVELOPMENT OF CITY-OWNED PROPERTY GENERALLY
LOCATED BETWEEN FRONT STREET AND THE HIGHWAY 146 OFF-RAMP WHEREAS, the City of Soledad ("City") owns approximately 0.91 acres of vacant property generally located between Front Street and the Highway 146 off-ramp, adjacent to the Santa Elena Mobile Home Park ("Property"); and
WHEREAS, the Property has been identified as a potential economic development opportunity due to its strategic location and proximity to privately owned property currently under escrow for a potential development project; and
WHEREAS, the City previously declared the Property as surplus land pursuant to the California Surplus Land Act (Government Code Section 54220 et seq.) through Resolution No. 6048 and has completed all applicable statutory notice and negotiation requirements; and WHEREAS, the City desires to evaluate the feasibility of redeveloping the Property in partnership with a qualified developer through an Exclusive Negotiating Agreement ("ENA"); and WHEREAS, the proposed ENA establishes an exclusive period for the City and Sharad Patel and Porus Ahir (“Developers”) to negotiate the potential terms of a Purchase and Sale Agreement or other implementing agreement, while allowing the developer to complete due diligence and preliminary planning; and
WHEREAS, execution of the ENA does not approve any development project, convey any interest in real property, commit the City to the sale or lease of the Property, grant any development rights, or obligate the City to approve any future entitlement; and WHEREAS, any future development proposal will be subject to separate review and approval by the City Council, compliance with the California Environmental Quality Act (CEQA), and all other applicable local, state, and federal laws.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Soledad as follows:

Section 1. The foregoing recitals are true and correct and are incorporated herein by this reference.

Section 2. The City Council finds that approval of the Exclusive Negotiating Agreement is not a project subject to the California Environmental Quality Act pursuant to CEQA Guidelines Section 15378 because it is an organizational and administrative activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment. 173
The City Council also finds that the action is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption), because it can be seen with certainty that execution of the ENA has no possibility of causing a significant effect on the environment. Any future development proposal resulting from the ENA will be subject to separate environmental review under CEQA before any discretionary approvals are granted.

Section 3. The City Council hereby approves the Exclusive Negotiating Agreement between the City of Soledad and Sharad Patel and Porus Ahir as presented in Exhibit A.

Section 4. The City Manager is hereby authorized to execute the Exclusive Negotiating Agreement and any revisions approved by the City Attorney that do not materially alter the intent of the Agreement.

Section 5. The adoption of this Resolution and execution of the Exclusive Negotiating Agreement do not constitute approval of any development project, convey any legal or equitable interest in the Property, obligate the City to enter into any subsequent agreement, or commit the City to approve any future discretionary action. Any future development proposal shall be subject to all applicable City approvals, environmental review, and other legal requirements.

Section 6. This Resolution shall become effective immediately upon its adoption by the City Council.

PASSED AND ADOPTED by the CityCouncil of the City of Soledad, at a regular meeting duly held on the 5th day of August 2026, by the following vote:

AYES, and in favor thereof Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ANNA M. VELAZQUEZ, Mayor
ATTEST:

MEGAN HUNTER, City Clerk
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EXCLUSIVE NEGOTIATION AGREEMENT
This Exclusive Negotiation Agreement (“Agreement”) is made and entered into this 19th day of August 2026 (“Effective Date”), by and between THE CITY OF SOLEDAD, a municipal corporation of the State of California (“City”), and Sharad Patel and Porus Ahir (“Developers”).

City and Developers are sometimes referred to herein as a “Party” or collectively as the “Parties.”

RECITALS
A. City, as a municipal corporation, owns or controls real property generally located on the corner of Off-ramp of HWY 146 and Front Street in the City of Soledad, which is more particularly described on Exhibit A, attached hereto and incorporated herein by this reference (“Property”).

B. The City desires to facilitate the orderly development and productive use of the Property in a manner that is consistent with the City's General Plan, Municipal Code, Housing Element, economic development objectives, and other applicable policies and regulations.

C. The Developer has expressed an interest in acquiring, leasing, or otherwise developing the Property for a project that is generally consistent with the City's planning and development objectives ("Project").

D. The City desires to provide the Developer with an exclusive period to conduct due diligence and negotiate the terms and conditions of a potential agreement governing the acquisition, lease, and/or development of the Property, while preserving the City's full legislative and discretionary authority.

NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter set forth, the parties hereby agree as follows:

1. Good Faith Negotiations. Subject to all terms and conditions of this Agreement, the City and Developer agree for the time period set forth below to negotiate diligently and in good faith towards the preparation of one or more purchase and sale agreements and any other Project agreement (collectively, “Project Agreement”) which will involve the acquisition of the Property by the Developer for the Project. It is expressly understood and agreed by the Parties that this is a contract regarding negotiations only and does not convey any interest in the Property or a potential agreement or constitute any approval whatsoever of any proposed project. By its execution of this Agreement, the City is not committing to (a) any disposition of land to Developer; (b) the ability to obtain any approvals required from the City to use the Property for the Project or (c) any other acts requiring the subsequent independent exercise of discretion by the City, or its departments. It is further agreed and understood that this Agreement does not imply any obligation on the part of the City or the Developer to enter into any agreement that may result from the negotiations contemplated herein.

Exhibit A
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City agrees, for the Initial Term and any Extended Term (defined below), not to negotiate with, solicit offers or proposals regarding, or respond to inquiries from (other than to notify the inquiring party, person or entity that City is subject to an exclusive negotiation agreement) any other person or entity regarding development, sale, or lease of the Property or any portion thereof.

2. Term of Agreement.

A. The term of this Agreement shall be for a period of one (1) year from the date of final execution by the Parties (“Initial Term”) unless earlier terminated or extended as provided in this Section 2 or Section 13.

B. The City Manager (“Manager”) or her designee acting on behalf of the City, shall have the right to extend the Initial Term of this Agreement for up to an additional one (1) year (“Extended Term”). The decision to extend the Initial Term shall be at the sole and reasonable discretion of the Manager. If the Manager elects to extend the Initial Term, the Manager shall notify Developer in writing not less than thirty (30) days prior to expiration of the Initial Term (“Notice of Extension”).

C. If a Project Agreement is executed by the Parties relating to all or part of the Property during the Initial Term or any Extended Term, then this Agreement shall terminate upon execution of said Project Agreement with regard to the portion of the Property subject to said Project Agreement.

3. Project Milestones. Within the time periods set forth in the Schedule of Performance attached hereto as Exhibit B (“Schedule of Performance”), the Parties shall have completed the milestones set forth therein. The City Manager is authorized to agree to extend the date of any task listed in Exhibit B on behalf of the City.

4. Right of Entry. During the Initial Term or any extension thereof, Developer, its representatives, consultants, contractors, agents and employees shall have the right to enter the Property at all reasonable times for the purpose of conducting any tests, studies, analysis or other work necessary to perform the milestones set forth above. The Developer shall provide the City with written notice prior to entry on the Property. The Developer shall have access to all data and information on the Property available to the City, but without warranty or representation by the City as to the completeness, correctness or validity of such data and information. Copies of any tests, studies or analysis obtained or made by the Developer on the Property shall be provided to the City. Any preliminary work by the Developer shall be undertaken only after securing any necessary permits from the appropriate governmental agencies.

5. Negotiation of Project Agreement. During the term of this Agreement, the Parties shall negotiate the terms and conditions of one or more Project Agreements, which may include, without limitation, a Purchase and Sale Agreement, Disposition and Development Agreement, Ground Lease, Option Agreement, Development Agreement, or other implementing agreement deemed appropriate by the City.
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The Parties acknowledge that no Project Agreement shall become effective unless and until approved by the City Council in accordance with applicable law. Neither this Agreement nor any negotiations, draft documents, correspondence, or discussions shall create any legally binding obligation upon either Party to execute a Project Agreement.

6. Disposition of Property. Within the time period set forth in the Schedule of Performance, Developer and the City shall negotiate the terms and conditions of a proposed Project Agreement. It is expressly acknowledged and agreed by the Parties that, until and unless a Project Agreement is signed by Developer and approved by the City Council, in its sole and absolute sole discretion, any drafts or other communications resulting from performance of this Agreement shall not be used to impose any legally binding obligation on the City or the Developer or as evidence of any oral or implied agreement by the City or the Developer to enter into a legally binding document.

7. Disclosure of Confidential Information. Developer acknowledges that the City is subject to the California Public Records Act (“Act”). The Act generally provides that written documents retained by the City are subject to disclosure upon the request of any third party except for specific limited exceptions provided for in the Act. Developer shall designate as “Confidential” any information which Developer provides to the City which Developer desires to keep confidential. If a request for disclosure of any information designated as “Confidential” by Developer is made under the Act, the City shall notify Developer in writing and Developer shall have the opportunity to object to the release of such information.

8. Conflict of Interest.

A. Developer shall at all times avoid conflict of interest or appearance of conflict of interest under any applicable state, federal or local laws, rules and regulations in the performance of this Agreement. Developer shall disclose any conflict of interest, or potential conflict of interest, which exists or arises at any time during the Term of this Agreement. For purposes of this Section, any conflict of interest of a principal, officer, partner, joint-venturer, or employee of Developer shall be conclusively deemed to be a conflict of interest of Developer.

B. City shall have the right to treat any violation of this Section as a material breach of this Agreement and shall have the right to terminate the Agreement and pursue any and all legal or equitable remedies for said breach of this Agreement.

9. Developer Responsibilities.

A. Development Costs. Developer expressly acknowledges that all expenses and costs it may incur during the Initial Term of or as a result of this Agreement are its sole obligation and responsibility and done at its sole risk, including, but not limited to, any costs associated with any proposed project and any costs incurred to prepare the necessary studies and analysis required for any proposed project. All City fees for processing a development 177
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application or any CEQA review are due upon submittal of each and every development application to the City and will be memorialized in a separate reimbursement agreement.

B. Entitlement Applications. Developer shall cooperate with City in the preparation, processing and submittal of the Project planning and zoning approvals and related environmental documents by supplying necessary information and/or development plans concerning the Project.

C. California Environmental Quality Act. The California Environmental Quality Act (CEQA) is applicable to any Project contemplated by this Agreement. Environmental clearance must be obtained prior to obtaining City Council approval for the Project. All studies prepared on behalf of the Developer in support of any CEQA clearance for the Project shall be prepared under the direction of the City and City’s independent judgment.

D. Progress Reports. Developer shall keep City appraised as to the status of all work to be undertaken by or on behalf of Developer as described in the Schedule of Performance.

During the Initial Term or any Extended Term, Developer shall submit to City within ten (10) days following City’s request, via email or other reasonable method, a progress update advising City of the status of all work being undertaken by or on behalf of Developer.

10. City Responsibilities.

A. City Assistance and Cooperation. City shall cooperate with Developer by providing information regarding the development potential of the Property.

B. Entitlement Processing. City shall cooperate with Developer in the preparation, processing and submittal of the Project planning and zoning approvals and related environmental documents by supplying necessary technical data and other related information and/or development plans concerning the Project.

C. Progress Reports. City shall keep Developer apprised as to the status of all work to be undertaken by or on behalf of City as described in the Schedule of Performance. Within ten (10) days following Developer’s request, which may be made from time to time during the Initial Term or any Extended Term, City shall submit to Developer, via email or other reasonable method, a progress update advising Developer of the status of all work being undertaken by or on behalf of City.

11. Distinction from Regulatory Authority of the City. Developer understands and agrees that this Agreement does not and shall not be construed to indicate or imply that the City, acting as a regulatory or permitting authority, has hereby granted or is obligated to grant any approval or permit required by law for the development of the Project on the Property as contemplated by this Agreement.

12. Public Hearing. If the negotiations contemplated herein culminate in the execution of a Project Agreement, the Project Agreement will be brought forward for consideration by the City Council, provided, however, such Project Agreement shall become effective only after having 178
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been considered and approved by the City Council in its sole and absolute discretion following any public hearing or other actions required by law.

13. Non-discrimination. Developer shall not discriminate, in any way, against any person on the basis of age, sex, race, color, religion, sexual orientation, actual or perceived gender identity, disability, ethnicity or national origin in connection with or related to the performance of this Agreement.

14. Termination. If Developer does not comply in a timely and diligent manner with any material obligation of Developer under this Agreement, City, at its option, may terminate this Agreement at any time by written notice to Developer and failure of Developer to cure the breach within a reasonable period of time following receipt of such notice. The Manager may terminate this Agreement on behalf of the City. The termination shall be effective upon Developer’s receipt of City’s written notice. If, during the Initial Term or any Extended Term, Developer determines that it is not commercially feasible for Developer to develop the Project, Developer shall have the right to terminate this Agreement upon providing written notice to City.

15. Indemnification. Subject to the limitations of Section 22 below, Developer shall defend, indemnify and hold harmless the City of Soledad, and its officers, employees and agents against any claim, loss or liability arising out of this Agreement or resulting in any way from work performed under this Agreement, including any work performed on the Property pursuant to the provisions of Section 4 above, by Developer, its representatives, consultants, contractors, agents or employees. This indemnification shall survive the expiration or other termination of this Agreement.

16. Notices. All notices and other communications required or permitted to be given under this Agreement shall be in writing and may be delivered by hand, by facsimile transmission with verification of receipt, or by United States mail, postage prepaid and return receipt requested, addressed to the respective Parties as follows:

To City: City of Soledad
Attention: Megan Hunter, City Manager
248 Main Street
Soledad, CA 93960
To Developer:

Sharad Patel and Porus Ahir
8455 Telegraph Rd
Pico Rivera, CA 90660
or to such other addresses as any party may designate by notice in accordance with this Section.

A copy of any notice of a legal nature, including, but not limited to, any claims against City, its officers or employees shall also be served in the manner specified above to the following address:
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6 165.220/693713
City of Soledad
248 Main Street
Soledad, CA 93960

17. Waiver of Lis Pendens. It is expressly understood and agreed by the Parties that no lis pendens shall be filed with respect to this Agreement or any dispute or act arising from it.

18. Time of Essence. It is understood and agreed by the Parties that time is of the essence in the performance of the obligations of this Agreement.

19. Assignment. Developer may not transfer or assign any or all of its rights or obligations hereunder except with the prior written consent of City which may be granted or withheld in City’s sole and absolute discretion, and any such attempted assignment without the prior written consent of City shall be wholly void and of no effect.

20. No Third-Party Beneficiaries. This Agreement is made and entered into solely for the benefit of the City and Developer and no other person shall have any right of action under this Agreement.

21. Limitation of Liability. Notwithstanding anything to the contrary at law or equity, in the event of any breach of this Agreement by the City, the sole and exclusive remedy of Developer hereunder shall be the recovery of Developer’s actual out of pocket costs incurred by Developer to third parties to satisfy its obligations under this Agreement. In no event shall Developer be entitled to “expectation damages” i.e., any amounts that Developer would expect to gain were an agreement ever executed, including, without limitation, any amount for potential lost profits.

Neither Party shall be allowed to recover any damages for lost business opportunity, or for any indirect or consequential damages from the other Party.

22. Waiver. Developer agrees that waiver by City of any breach or violation of any term or condition of this Agreement shall not be deemed to be a waiver of any other term or condition contained herein or a waiver of any subsequent breach or violation of the same or any other term or condition. The acceptance by City of the performance of any work or services by Developer shall not be deemed to be a waiver of any term or condition of this Agreement.

23. Governing Law. The law governing this Agreement shall be that of the State of California.

24. Venue. In the event that suit shall be brought by either party hereunder, the Parties agree that trial of such action shall be exclusively vested in a state court in the County of Monterey, or where appropriate, in the United States District Court for the Northern District of California, San Jose, California.

25. Prior Agreements and Amendments. This Agreement, including all Exhibits listed below and attached hereto, represents the entire understanding of the parties as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with 180
7 165.220/693713
respect to those matters covered hereunder. This Agreement may only be modified by a written amendment duly executed by the Parties.

Exhibit A Description of Property
Exhibit B Schedule of Performance
WITNESS THE EXECUTION HEREOF on the day and year first hereinabove written. “City”

CITY OF SOLEDAD
“Developer”
Sharad Patel and Porus Ahir.

By: _______________________________
Name: Megan Hunter
Title: City Manager
By: _______________________________
Name: Sharad Patel
Title: Property Owner
APPROVED AS TO FORM:

By: _______________________________
Name: Mike Rodriquez
Title: City Attorney
By: _______________________________
Name: Porus Ahir
Title: Property Owner
181
182
183
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9 165.220/693713

EXHIBIT B

SCHEDULE OF PERFORMANCE
Item Action Target Date for Completion
1 Meet with City Staff to establish the project
schedule, communication protocols, and identify
Within 45 days
2 Complete preliminary site due diligence, including
title review, survey, utility investigation, and
access evaluation
Within 60 days
3 Submit a preliminary development concept,
including proposed land uses, site layout, parking,
Within 90 days
4 Conduct meetings with City staff to review the
conceptual plan and identify regulatory,
Within 120 days
5 Submit an updated conceptual site plan
incorporating City comments and identify
anticipated public improvements, utility needs, and
Within 150 days
6 Provide evidence of project financing strategy,
market feasibility, and development schedule.

Begin negotiations on the business terms and of a
Purchase and Sale Agreement and/or Disposition
Within 200 days
7 Complete negotiations and present a DRAFT
Purchase and Sale Agreement, or other
implementing agreement for City consideration, or
request an extension if additional time is necessary.

Within 230 days
All timeframes identified in this Schedule of Performance shall be measured from the Effective Date of the ENA and are cumulative. Completion of a preceding task does not restart or extend the timeframe for any subsequent task.
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SUBJECT: Resolution No. 6402, A Resolution of the City Council of the City of Soledad Accepting a $310,000 Grant Award from the California Department of Transportation Sustainable Transportation Planning Grant Program and Authorizing the City Manager to Execute the Grant Agreement for the Vehicle Miles Traveled and Greenhouse Gas Reduction Project
TO: Honorable Mayor Velazquez and City Council
FROM: Beatriz Trujillo, Community and Economic Development Director and Ariana Mora, Senior Planner
MEETING DATE: August 5, 2026

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 4.

Recommendation
It is recommended that the City Council of the City of Soledad consider and adopt Resolution No.6402,

1. Accepting a $310,000 grant award from the California Department of Transportation Sustainable Transportation Planning Grant Program to support the City’s Vehicle Miles Traveled and Greenhouse Gas Reduction Project; and

2. Authorize the City Manager to execute the Restricted Grant Agreement, attached as Exhibit A, including any amendments and related documents necessary to implement and administer the grant-funded project.

Executive Summary
The City of Soledad has been awarded a $310,000 Sustainable Transportation Planning Grant from Caltrans to develop strategies and policies aimed at reducing Vehicle Miles Traveled (VMT) and greenhouse gas (GHG) emissions within the community. The grant will fund the preparation of the City’s first Climate Action Plan (CAP) and the development of Transportation Demand Management (TDM) policies to support sustainable transportation options and long-term environmental resiliency. The project will provide the City with a comprehensive framework to address State climate goals, support sustainable growth, and implement policies consistent with the City’s 2045 General Plan Update and Housing Element requirements. Acceptance of this grant will allow the City to collaborate with regional partners, including Monterey-Salinas Transit, Soledad Unified School District, local businesses, community stakeholders, and residents, to identify and implement strategies that reduce transportation-related emissions while improving mobility options throughout the City. 187
Background
The California Department of Transportation (Caltrans) established the Sustainable Transportation Planning (STP) Grant Program to support local and regional planning efforts that advance sustainable transportation, reduce greenhouse gas emissions, improve mobility, and support California’s climate goals. The City of Soledad submitted a grant application requesting funding to develop a comprehensive approach to reducing VMT and GHG emissions through planning, community engagement, and policy development. In May 2026, Caltrans awarded the City of Soledad a $310,000 grant to implement the VMT and GHG Reduction Project. The project will include preparation of the City’s first Climate Action Plan (CAP), development of TDM policies, community outreach and stakeholder engagement, identification of strategies to reduce vehicle dependency and transportationrelated emissions, and integration of sustainability policies into future City planning efforts.

Review & Analysis
Transportation is a significant contributor to GHG emissions throughout California. Through State legislation, regional planning efforts, and climate initiatives, local jurisdictions are encouraged to develop policies and programs that reduce reliance on single-occupancy vehicles, promote alternative transportation options, improve mobility, and support sustainable community development. The preparation of a CAP and development of TDM policies will provide the City with a framework to identify emission reduction strategies, establish measurable sustainability goals, and implement programs consistent with State climate objectives. The CAP will evaluate opportunities to reduce VMT through strategies such as expanded transit use, active transportation improvements, mobility partnerships, and other transportation initiatives that support a more sustainable and resilient community.

The City is currently undertaking the 2045 Siempre Soledad General Plan Update, which provides a unique opportunity to align the development of the CAP and TDM policies with the City’s long-term vision for growth, land use, transportation, housing, and environmental sustainability. Coordination between these planning efforts will ensure that the recommendations and policies developed through the grant-funded project complement the General Plan Update and support implementation of the City’s future goals, including compliance with State housing requirements, reduction of VMT impacts, and promotion of sustainable infrastructure and community resiliency.

Following acceptance of the grant award, the City will be required to conduct a competitive Request for Proposals (RFP) process to select a qualified consultant team to assist with preparation of the CAP, development of TDM policies, community engagement, technical analysis, and preparation of final project deliverables. City staff will coordinate the consultant selection process and ongoing project efforts to ensure consistency with the General Plan Update schedule, technical studies, community outreach efforts, and other related planning initiatives currently underway. The project will incorporate a community-driven planning process by engaging residents, businesses, schools, transportation agencies, and regional partners. Collaboration with organizations such as Monterey-Salinas Transit, the Soledad Unified School District, local stakeholders, and community members will help identify transportation challenges, opportunities, and practical strategies tailored to the needs of the Soledad community.

The grant agreement is anticipated to start on September 14, 2026, and remain in effect through June 30, 2029. All eligible project costs must be incurred by August 29, 2029, with reimbursement requests submitted to Caltrans on a quarterly basis. Acceptance of the grant will allow the City to advance this important planning effort while leveraging outside funding to support sustainability initiatives and 188
reduce the financial impact on the General Fund. While the grant provides a defined implementation period, the City remains committed to pursuing additional funding opportunities, regional partnerships, and future implementation measures to continue advancing the goals identified through the CAP and TDM planning process.

Financial Considerations
The STP Grant Program requires the City to provide an 11.47% local match, valued at $35,557, as a condition of receiving the grant award. The City will satisfy this requirement through in-kind services funded by existing General Fund resources, consisting of staff time dedicated to project administration, grant management, coordination, outreach, and implementation activities. No additional General Fund appropriation is requested, as the local match will be accounted for through staff time allocation during the grant period. The remaining $274,443 in Caltrans grant funding will support eligible project costs, including consultant services, preparation of project deliverables, stakeholder engagement, meeting materials, and development of the final Climate Action Plan and Transportation Demand Management policies. The total project budget is $310,000, consisting of the Caltrans grant award and the City’s required local match. Acceptance of the grant will allow the City to complete this important planning effort while leveraging outside funding to advance sustainability and climate resiliency goals.

Strategic Plan Alignment
The project supports the City’s Strategic Plan by advancing Goal 3.4 – Promote Sustainable Infrastructure and Environmental Resiliency, specifically Objective 3.4.3 – Develop and Implement a Comprehensive Climate Action Plan Integrated into All City Operations. The development of a CAP and TDM policies will provide the City with strategies and tools to promote sustainability, reduce greenhouse gas emissions, improve transportation efficiency, and support long-term environmental resiliency throughout the community.

Alternatives
Adopt the resolution; or
Adopt the resolution with modifications; or
Reject the resolution and provide other direction to staff. This option is not recommended, as the City would not be able to accept the $310,000 Caltrans grant award to support the development of a Climate Action Plan and Transportation Demand Management policies. Rejecting the grant would limit the City’s ability to advance State climate goals, reduce VMT and GHG emissions, and coordinate these efforts with the ongoing 2045 General Plan Update.

Planning/CEQA
The proposed project is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378, because the action consists solely of administrative and planning activities that will not result in a direct or reasonably foreseeable indirect physical change to the environment. Alternatively, the action is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3), the Common Sense Exemption, because there is no possibility that the activity may have a significant effect on the environment. Future projects or actions identified through the Climate Action Plan may require separate environmental review, as applicable.

Public Notice Requirements
Not required.
189
Resolution No. 6402
Exhibit A - Calgrant STP Grant Agreement
Attachment(s):
190
RESOLUTION NO. 6402

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLEDAD ACCEPTING A $310,000 GRANT AWARD FROM THE CALIFORNIA DEPARTMENT

OF TRANSPORTATION SUSTAINABLE TRANSPORTATION PLANNING GRANT

AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT FOR

THE VEHICLE MILES TRAVELED AND GREENHOUSE GAS REDUCTION

PROJECT
WHEREAS, the California Department of Transportation (Caltrans) established the Sustainable Transportation Planning Grant (STP); and
WHEREAS, the City of Soledad submitted an application for funding under the STP Grant Program to implement a Climate Action Plan (CAP) and help reduce Vehicle Miles Traveled (VMT) and Greenhouse Gas Reduction (GHG) to meet the State goals; and WHEREAS, in May 2026, Caltrans awarded the City of Soledad a grant in the amount of $310,000 to support VMT and GHG reduction; and
WHEREAS, the proposed project includes the creation of the first CAP and Transportation Demand Management (TDM) Policies focused on supporting California’s climate goals, guiding long-term sustainable growth, and helping implement the City’s 2045 General Plan Update and HCD Compliant Housing Element; and
WHEREAS, the City will partner with Monterey-Salinas Transit, the Soledad Unified School Union, local stakeholders, businesses, and residents to develop strategies that reduce VMT and GHG emissions; and
WHEREAS, the project supports the City’s Strategic Plan, including Goal 3.4- Promote Sustainable Infrastructure and Environmental Resiliency under Objective 3.4.3 – Develop and Implement a Comprehensive Climate Action Plan integrated into all City Operations; and WHEREAS, the grant agreement is anticipated to be effective September 14, 2026, and remain in effect through June 30, 2029, with all eligible costs required to be incurred by August 29, 2029, and invoices for reimbursement required to be submitted at least quarterly; and WHEREAS, the $310,000 grant award requires an 11.47% local cash match of $35,557, which will be provided through in-kind services funded by existing General Fund resources, consisting of staff time dedicated to project administration, grant management, coordination, outreach, and implementation activities; and
WHEREAS, the City Council finds that acceptance of the STP Grant and preparation of a CAP do not constitute a project subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378, as the action consists solely of administrative and planning activities that will not result in a direct or reasonably foreseeable indirect physical change to the environment; and, in the alternative, the action is exempt from CEQA pursuant to CEQA 191
Guidelines Section 15061(b)(3), the Common Sense Exemption, because there is no possibility that the activity may have a significant effect on the environment; and WHEREAS, acceptance of the grant and execution of the associated agreements will enable the City to implement a comprehensive, community-driven approach to reducing VMT and GHG and meet State requirements.

NOW, THEREFORE BE IT HEREBY RESOLVED, by the City Council of the City of Soledad that

1. The City Council hereby accepts the $310,00 grant award from the California Department of Transportation Sustainable Transportation Planning Grant

2. The City Manager is hereby authorized to execute the Restricted Grant Agreement, a copy attached hereto as “Exhibit A”, any amendments thereto, and all related documents necessary to implement and administer the grant-funded project.

3. The City Manager, or designee, is authorized to take all actions necessary to carry out the intent of this Resolution and ensure compliance with all applicable grant requirements.

PASSED AND ADOPTED by the CityCouncil of the City of Soledad, at a regular meeting duly held on the 5th day of August 2026, by the following vote:

AYES, and in favor thereof Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ANNA M. VELAZQUEZ, Mayor
ATTEST:

MEGAN HUNTER, City Clerk
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City of Soledad
Agreement Number XXAXXXX

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Sustainable Communities Grants
(Federal)
Restricted Grant Agreement
This Restricted Grant Agreement (RGA), between the State of California acting by and through its Department of Transportation, referred to herein as CALTRANS, and the City of Soledad, hereinafter referred to as AGENCY, will commence on September 14th, 2026, or upon approval by CALTRANS, whichever occurs later. This RGA is of no effect unless approved by CALTRANS. AGENCY shall not receive payment for work performed prior to approval of the RGA and before receipt of Notice to Proceed by the CALTRANS Contract Manager. This RGA shall expire on February 28, 2029.

Recitals
Under this RGA, and pursuant to 49 USC 5304 (Federal funds only) and as authorized by Budget Act Line Item 2660-102F-0890, CALTRANS intends to convey Federal Transit Administration (FTA) restricted grant funds to AGENCY, who will conduct transportation studies and planning within the regional area under the jurisdiction of AGENCY under the terms, covenants and conditions of this RGA.

Now, Therefore, based upon the terms, covenants, and conditions, the parties agree as follows:

Section I
AGENCY Responsibility:

To timely and satisfactorily complete all Project Work described in Attachment II within the project budget and in accordance with the Paragraphs of this RGA.

Section ll
CALTRANS Responsibility:

That when conducting an audit of the costs claimed by AGENCY under the provisions of this RGA, to conduct the audit in accordance with applicable laws and regulations.

Section lll
Parties’ Mutual Responsibilities:

1. Under this RGA, and pursuant to Budget Act Line Item 2660-102F-0890, CALTRANS will convey federal grant restricted funds to AGENCY, and AGENCY will conduct transportation studies and planning within the regional area described in Attachment II. The funds subject to this RGA must be (a) identified as available for a grant in CALTRANS’ budget and (b) for the purpose of conducting transportation studies or planning and (c) to a public entity that is responsible for conducting transportation studies or planning.

2. Details of Grant Program, Funds, Project, and Program Guidelines and governing State and Federal law are fully described in Attachment III which is attached to and made a part of this RGA.

3. Under this restricted grant, funds may be only used for the purpose set forth in RGA, Resolution (Attachment I), Scope of Work and Project timeline (Attachment II), and the applicable Grant Application Guide (Attachment III), and funds may only be used for costs and expenses that are directly related to such purpose.

4. AGENCY shall perform all duties and obligations described in the Vehicle Miles Traveled and Greenhouse Gas Reduction Project hereinafter “Project”, subject to the terms and conditions of this RGA and Approved Project Grant Application (Scope of Work and Project timeline), which are attached hereto as Attachment II.

EXHIBIT A

DRAFT AGREEMENT
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Agreement Number XXAXXXX

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5. The resolution authorizing AGENCY to execute this RGA pertaining to the above described Project is attached hereto as Attachment I.

6. All services performed by AGENCY pursuant to this RGA shall be performed in accordance with all applicable Federal, State, and Local laws, regulations, and ordinances, all applicable CALTRANS policies and procedures, and all applicable CALTRANS published manuals, including, but not limited to, the applicable Grant Application Guide (Attachment III).

In case of conflict between Federal, State, and Local laws, regulations, and ordinances, and/or any applicable policies, procedures, or published manuals of either CALTRANS or AGENCY, the order of precedence of the applicability of same to this RGA shall be established in this order: 1) Federal laws and regulations; 2) California laws and regulations; 3) CALTRANS policies, procedures, and published manuals; 4) Local ordinances; and 5) AGENCY policies, procedures, and published manuals.

7. Project funding is as follows:

Fund Title Fund Source Dollar Amount
Federal Trust Funds XXXXX $ 274,443.00
Local Match Agency Provided $ 35,557.00
Total Project Costs $ 310,000.00
No in-kind contributions may be made unless amount and type of the contribution is identified above.

8. This RGA is exempt from legal review and approval by the Department of General Services, pursuant to applicable law.

9. Notification of Parties
a. AGENCY’s Project Manager for Project is Ariana Mora, 831-223-5020. b. CALTRANS’ Contract Manager is Beatriz Trujillo, 831- 529-6934. “Contract Manager” as used herein includes his/her designee.
c. All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when made in writing and received by the parties at their respective addresses:

City of Soledad
Attention: Ariana Mora, Senior Planner
Phone Number: 831-223-5020
Email: [email protected]
Address: 248 Main Street
City, State Zip: Soledad, CA 93960
California Department of Transportation
(District/Division)
Attention: Insert Name (Contract Manager), (Contract Manager Title) Phone Number: (XXX) XXX-XXXX
Email:

Address
City, State Zip
194
City of Soledad
Agreement Number XXAXXXX

Page 3 of 16 ends

10. Period of Performance
a. Reimbursable work under this RGA shall begin no earlier than on September 14, 2026, following the written approval of CALTRANS and AGENCY’s receipt of the Notice to Proceed letter of this RGA by the CALTRANS Contract Manager. This RGA will expire on June 30, 2029. b. AGENCY will attend a kickoff meeting with CALTRANS to be scheduled within one (1) week from receipt of Notice to Proceed letter by the CALTRANS Contract Manager.

11. Changes in Terms/Amendments
This Agreement may only be amended or modified during the period of performance by mutual written agreement of the parties.

12. Cost Limitation
a. The maximum total amount granted and reimbursable to AGENCY pursuant to this RGA by CALTRANS shall not exceed $274,443.00.
b. It is agreed and understood that this RGA fund limit is an estimate and that CALTRANS will only reimburse the cost of services actually rendered in accordance with the provisions of this RGA and as authorized by the CALTRANS Contract Manager at or below the fund limitation established herein.

13. Termination
a. If the applicable law and the Grant Program guidelines provide for such termination, CALTRANS reserves the right to terminate this RGA upon written notice to AGENCY at least 30 days in advance of the effective date of such termination in the event CALTRANS determines (at its sole discretion) that AGENCY fails to proceed with Project Work in accordance with the terms of this RGA. In the event of termination for convenience, CALTRANS will reimburse AGENCY for all allowable, authorized, and non-cancelled costs up to the date of termination.
b. This RGA may be terminated by either party for any reason by giving written notice to the other party at least 30 days in advance of the effective date of such termination. In the event of termination for convenience, CALTRANS will reimburse AGENCY for all allowable, authorized, and non-cancelled costs up to the date of termination.
c. AGENCY has 60 days after the Termination Date to submit accurate invoices to CALTRANS to make final allowable payments for Project costs in accordance to the terms of this RGA. Failure to submit accurate invoices within this period of time will result in a waiver by AGENCY of its right to reimbursement of expended costs.

14. Budget Contingency Clause
a. It is mutually agreed that if the US Congress or the State Legislature fail to appropriate or allocate funds during the current year and/or any subsequent years covered under this RGA do not appropriate sufficient funds for the program, this RGA shall be of no further force and effect.

In this event, CALTRANS shall have no liability to pay any funds whatsoever to AGENCY or to furnish any other considerations under this RGA and AGENCY shall not be obligated to perform any provisions of this RGA.
b. If funding for any fiscal year is reduced or deleted by US Congress or State Legislature for purposes of this program, CALTRANS shall have the option to either terminate this RGA with no liability occurring to CALTRANS, or offer an RGA Amendment to AGENCY to reflect the reduced amount.
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Agreement Number XXAXXXX

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15. Payment and Invoicing
a. The method of payment for this RGA will be based on the actual allowable costs that are incurred in accordance with the provisions of this RGA and in the performance of the Project Work. CALTRANS will reimburse AGENCY for expended actual allowable direct costs including, but not limited to, labor costs, travel, and contracted consultant services costs incurred by AGENCY in performance of the Project Work. Indirect costs are reimbursable only if the AGENCY has identified the estimated indirect cost rate in Attachment II and an approved Indirect Cost Allocation Plan or an Indirect Cost Rate Proposal as set forth in Section III – Cost Principles, Paragraph 17e. The total cost shall not exceed the cost reimbursement limitation set forth in Section III – Cost Limitation, Paragraph 12a. Actual costs shall not exceed the estimated wage rates, labor costs, travel, and other estimated costs and fees set forth in Attachment II without an amendment to this RGA, as agreed between CALTRANS and AGENCY.
b. Reimbursement of AGENCY expenditures will be authorized only for those allowable costs actually incurred by AGENCY in accordance with the provisions of this RGA and in the performance of the Project Work. AGENCY must not only have incurred the expenditures on or after the start date and the issuance of the Notice to Proceed letter for this RGA and before the Expiration Date but must have also paid for those costs to claim any reimbursement. c. Travel expenses and per diem rates are not to exceed the rate specified by the State of California Department of Human Resources for similar employees (i.e. non-represented employees) unless written verification is supplied that government hotel rates were not then commercially available to AGENCY, its sub-recipients, contractors, and/or subcontractors, at the time and location required as specified in the Caltrans Travel Guide Exception Process at the following link:https://travelpocketguide.dot.ca.gov/.

Also see website for summary of travel reimbursement rules. d. AGENCY shall submit invoices to CALTRANS at least quarterly, but no more frequently than monthly, in arrears for completion of milestones in accordance with the Project Timeline in Attachment II to the satisfaction of the CALTRANS Contract Manager. Invoices shall reference this RGA Number and shall be signed and submitted to the CALTRANS Contract Manager at the address stated in Section III, Paragraph 9c, Notification of Parties. e. Invoices shall include the following information:
1) Names of the AGENCY personnel performing work
2) Dates and times of Project Work
3) Locations of Project Work
4) Itemized costs as set forth in Attachment II, including identification of each employee contractor, sub-recipient, or subcontractor staff who provided services during the period of the invoice, the number of hours and hourly rates for each such employee contractor or subcontractor staff member, authorized travel expenses with receipts, receipts for authorized materials or supplies, and contractor, sub-recipient, and subcontractor invoices. 5) AGENCY shall submit written progress reports with each set of invoices to allow CALTRANS Contract Manager to determine if AGENCY is performing to expectations, is on schedule, is within funding cost limitations, as well as to communicate interim findings, and to afford occasions for airing difficulties respecting special problems encountered so that remedies can be developed.
6) AGENCY shall complete and submit a completed Disadvantaged Business Enterprises 196
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Utilization Report (ADM-3069) as described in Section III, Paragraph 19, Disadvantaged Business Enterprises.
f. Incomplete or inaccurate invoices shall be returned to the AGENCY unapproved for correction.

Failure to submit invoices on a timely basis may be grounds for termination of this RGA for material breach per Section III - Termination, Paragraph 13. g. CALTRANS will reimburse AGENCY for all allowable Project costs at least quarterly, but no more frequently than monthly, in arrears as promptly as CALTRANS fiscal procedures permit upon receipt of an itemized signed invoice.
h. RGA Expiration Date refers to the last date for AGENCY to incur valid Project costs or credits and is the date RGA expires. AGENCY has 60 days after Expiration Date to make final allowable payments to Project contractors or vendors and submit Project’s final product(s) as described in Attachment II and a final accurate invoice to CALTRANS for reimbursement for allowable Project costs. Any unexpended Project funds not invoiced by the 60th day will be reverted and will no longer be accessible to reimburse late Project invoices.

16. Local Match Funds
a. AGENCY shall contribute not less than a proportional cash amount toward the services described herein on a monthly or quarterly basis. The frequency of the payments shall be agreed upon by the parties in a document signed by both parties. Notwithstanding the foregoing, to the extent that in-kind contributions are permitted and identified under this RGA, Section III, Project Funding, Paragraph 7, the contributions may be counted as cash when they are actually received by CALTRANS. Except where expressly allowed in writing herein, reimbursement of credits for local matching funds will be made or allowed only for work performed on and after the date of issuance of the Notice to Proceed and prior to the Expiration Date of this RGA.
b. AGENCY agrees to contribute the statutorily required local contribution of matching funds if any is specified within this RGA or in any Attachment hereto, toward the actual cost of the services described in Attachment II. AGENCY shall contribute not less than its required match amount toward the services described herein. Local cash and in-kind match requirements can be found in the applicable Grant Application Guide (Attachment III) have been identified in Section III, Paragraph 7.

17. Cost Principles
a. AGENCY agrees to comply with Title 2, Code of Federal Regulations (CFR), Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. b. AGENCY agrees, and will assure that its contractors, sub-recipients, and subcontractors will be obligated to agree, that (a) Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allowability of individual Project cost items, and (b) all parties shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Every subrecipient receiving Project funds as a sub-recipient, contractor, or subcontractor under this RGA shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards to the extent applicable.
c. AGENCY agrees to include Project in the schedule of projects to be examined in AGENCY’s annual audit and in the schedule of projects to be examined under any single audit prepared, if applicable, in accordance with 2 CFR, Part 200.
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d. Prior to AGENCY seeking reimbursement of indirect costs, AGENCY must have identified the estimated indirect cost rate in Attachment II, prepare and submit annually to CALTRANS for review and approval an indirect cost rate proposal and a central service cost allocation plan (if any) in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and Chapter 5 of the Local Assistance Procedures Manual which may be accessed at: https://dot.ca.gov/-/media/dotmedia/programs/local-assistance/documents/lapm/ch05.pdf. e. AGENCY agrees and shall require that all its agreements with contractors and subrecipients contain provisions requiring adherence to this Paragraph in its entirety except for section c, above.

18. Repayment of Unallowable Costs
Any Project costs for which AGENCY has received payment or credit that are determined by subsequent audit to be unallowable under 2 CFR, Part 200, and/or Part 48, Chapter 1, Part 31, are subject to repayment by AGENCY to CALTRANS. Should AGENCY fail to reimburse moneys due CALTRANS within 30 days of discovery or demand, or within such other period as may be agreed in writing between the parties hereto, CALTRANS is authorized to intercept and withhold future payments due AGENCY from CALTRANS or any third-party source, including, but not limited to, the State Treasurer, the State Controller, or any other fund source.

19. Disadvantaged Business Enterprise (DBE) Program Changes On September 30, 2025, the U.S. Department of Transportation (U.S.DOT) issued an interim final rule (IFR) which, among other things, implemented changes to the Disadvantaged Business Enterprise (DBE) Program via modifications to 49 Code of Federal Regulations Part 26. (Docket Number DOT-OST-2025-0897.) The IFR was published in the Federal Register on October 3, 2025, and took immediate effect. (90 FR 47969 (Oct. 3, 2025). In the event of any ambiguity or discrepancy between the existing law, including the IFR, guidance, including U.S. DOT IFR Frequently Asked Questions (FAQ), and this RGA, existing law controls. • Interim Final Rule in Federal Register: Federal Register :: Disadvantaged Business Enterprise Program and Disadvantaged Business Enterprise in Airport Concessions Program Implementation Modifications
• U.S. DOT DBE Interim Final Rule Guidance: DBE IFR Guidance.9-30-2025.pdf • DBE IFR FAQ US DOT

20. Disadvantaged Business Enterprises
A. AGENCY agrees to carry out the applicable requirements of Title 49 CFR, Part 26, of the Code of Federal Regulations, entitled “Participation by Disadvantaged Business Enterprises (DBEs) in Department of Transportation Financial Assistance Programs” in the award and administration of federally assisted Contracts for work performed under this RGA. AGENCY, in the administration of its contracts, shall adopt practices that are consistent with the CALTRANS DBE Program Plan.

B. There is no specific contract goal for DBE participation in this Agreement.

C. If subcontracting is allowed in this solicitation, any subcontract entered into between Contractor and Subcontractor(s) as a result of this Agreement shall contain all of the provisions of this section.

D. When required, AGENCY agrees to complete semi-annual DBE reporting as required twice a year: April 1 and October 1. For details about DBE forms and requirements, visit the Office of 198
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Regional Planning website at https://dot.ca.gov/programs/transportation-planning/regionalplanning/federal-state-planning-program.

21. Americans with Disabilities Act
By signing this Agreement, LOCAL AGENCY assures CALTRANS that in the course of performing Project Work, it will fully comply with the applicable provisions of the Americans with Disabilities Act (ADA) of 1990, as amended, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA (42 USC Section 12101 et seq.).

22. Indemnification
Neither CALTRANS nor any officer or employee thereof is responsible for any injury, damage, or liability occurring by reason of anything done or omitted to be done by AGENCY, its officers, employees, agents, its contractors, its sub-recipients, or its subcontractors under or in connection with any work, authority, or jurisdiction conferred upon AGENCY under this RGA. It is understood and agreed that AGENCY, shall fully defend, indemnify, and save harmless CALTRANS and all of CALTRANS’ officers and employees from all claims, suits, or actions of every name, kind, and description brought forth under, including, but not limited to, tortuous, contractual, inverse condemnation, or other theories or assertions of liability occurring by reason of anything done or omitted to be done by AGENCY, its officers, employees, agents, contractors, subrecipients, or subcontractors under this RGA.

23. Nondiscrimination Clause (2 CCR 11105 Clause b)
a. During the performance of this RGA, the AGENCY, its contractors, its subrecipients, and its subcontractors shall not deny the contract's benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. AGENCY shall ensure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. b. AGENCY shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code Sections 12900 et seq.), the regulations promulgated thereunder (California Code of Regulations, Title 2, Sections 11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code Sections 11135-11139.5), and the regulations or standards adopted by CALTRANS to implement such article. c. AGENCY shall permit access by representatives of the Department of Fair Employment and Housing and CALTRANS upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or CALTRANS shall require to ascertain compliance with this clause.
d. AGENCY and its contractors, its sub-recipients, and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
e. AGENCY shall include the nondiscrimination and compliance provisions of this clause in all agreements with its sub-recipients, contractors, and subcontractors, and shall include a requirement in all agreements with all of same that each of them in turn include the 199
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nondiscrimination and compliance provisions of this clause in all contracts and subcontracts they enter into to perform work under the RGA.

24. Retention of Records/Audits
a. AGENCY, its contractors, subcontractors, and sub-recipients, agree to comply with Title 2, CFR, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
b. AGENCY, its contractors, subcontractors, and sub-recipients shall establish and maintain an accounting system and records that properly accumulate and segregate incurred Project costs and matching funds by line. The accounting system of AGENCY, its contractors, all subcontractors, and sub-recipients shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices. All accounting records and other supporting papers of AGENCY, its contractors, subcontractors, and sub-recipients connected with Project performance under this RGA shall be maintained for a minimum of three (3) years from the date of final payment to AGENCY and shall be held open to inspection, copying, and audit by representatives of CALTRANS, the California State Auditor, and auditors representing the Federal government. Copies thereof will be furnished by AGENCY, its contractors, its subcontractors, and sub-recipients upon receipt of any request made by CALTRANS or its agents. In conducting an audit of the costs and match credits claimed under this RGA, CALTRANS will rely to the maximum extent possible on any prior audit of AGENCY pursuant to the provisions of State and AGENCY law. In the absence of such an audit, any acceptable audit work performed by AGENCY’s external and internal auditors may be relied upon and used by CALTRANS when planning and conducting additional audits. c. For the purpose of determining compliance with applicable State and AGENCY law in connection with the performance of AGENCY’s contracts with third parties pursuant to Government Code Sections 8546.7, AGENCY, AGENCY’s sub-recipients, contractors, subcontractors, and CALTRANS, shall each maintain and make available for inspection all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts. All of the above referenced parties shall make such materials available at their respective offices at all reasonable times during the entire Project period and for three (3) years from the date of final payment to AGENCY under this RGA. CALTRANS, the California State Auditor, or any duly authorized representative of CALTRANS or the United States Department of Transportation, shall each have access to any books, records, and documents that are pertinent to a Project for audits, examinations, excerpts, and transactions, and AGENCY shall furnish copies thereof if requested.
d. AGENCY, its sub-recipients, contractors, and subcontractors, will permit access to all records of employment, employment advertisements, employment application forms, and other pertinent data and records by the State Fair Employment Practices and Housing Commission, or any other agency of the State of California designated by CALTRANS, for the purpose of any investigation to ascertain compliance with this RGA.
e. Additionally, all grants may be subject to a pre-award audit prior to execution of the RGA to ensure AGENCY has an adequate financial management system in place to accumulate and segregate reasonable, allowable, and allocable costs.
f. Any contract with a contractor, subcontractor or sub-recipient entered into as a result of this RGA shall contain all the provisions of this Paragraph. 200
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25. Adjudication of Facts in Disputes
a. Any dispute concerning a question of fact arising under this RGA that is not disposed of by agreement shall be decided by the CALTRANS Contract Officer, who may consider any written or verbal evidence submitted by AGENCY. The CALTRANS Contract Officer shall issue a written decision within 30 days of receipt of the dispute. If AGENCY rejects the decision of the CALTRANS Contract Officer, AGENCY can pursue any and all remedies authorized by law.

Neither party waives any rights to pursue remedies authorized by law. b. Neither the pendency of a dispute nor its consideration by CALTRANS Contract Officer will excuse AGENCY from full and timely performance in accordance with the terms of the RGA. c. Voluntary Resolution: Reference to Other Means of Resolution. In recognition of the government-to-government relationship of the AGENCY and CALTRANS, the parties shall make their best efforts to resolve disputes that occur under this RGA by good faith negotiations whenever possible. Therefore, without prejudice to the right of either party to seek injunctive relief against the other when circumstances are deemed to require immediate relief, the parties hereby establish a threshold requirement that disputes between the AGENCY and CALTRANS first be subjected to a process of meeting and conferring in good faith in order to foster a spirit of cooperation and efficiency in the administration and monitoring of performance and compliance by each other with the terms, provisions, and conditions of this RGA, as follows:
1) Either party shall give the other, as soon as possible after the event giving rise to the concern, a written notice setting forth, with specificity, the issues to be resolved. 2) The parties shall meet and confer in a good faith attempt to resolve the dispute through negotiation not later than 10 days after receipt of the notice, unless both parties agree in writing to an extension of time.
3) If the dispute is not resolved to the satisfaction of the parties within 30 working days after the first meeting, then either party may seek to have the dispute resolved by alternative dispute resolution methods, including, but not limited to, non-binding arbitration, mediation, or the use of a technical advisor.
4) Disagreements that are not otherwise resolved by mutually acceptable means as provided herein may be resolved in the Superior Court of the State of California located within the same county where a Project is located. The disputes to be submitted to the court include claims of breach or violation of this RGA. This RGA shall be interpreted under the laws of the State of California without regard to any conflict of laws’ provisions. In no event may AGENCY be precluded from pursuing any arbitration or judicial award or remedy against CALTRANS on the grounds that AGENCY has failed to exhaust its state administrative remedies. The parties agree that, except in the case of imminent threat to public health or safety, reasonable efforts will be made to explore alternative dispute resolution avenues prior to initiating judicial proceedings.

26. Third-Party Contracts
a. All State-government-funded procurements must be conducted using a fair and competitive procurement process. AGENCY may use its own procurement procedures as long as the procedures comply with the local AGENCY’s laws, rules, and ordinances governing procurement and all applicable provisions of State law, including, without limitation, the requirement that the AGENCY endeavor to obtain at least three (3) competitive bids for solicitation of goods, services, and consulting services (see Part 2, Chapter 2, Articles 3 and 4 of the Public Contract Code); a qualifications-based solicitation process, for which statements of qualifications are obtained from at least three (3) qualified firms for architectural and engineering 201
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services (see Title 1, Division 5, Chapter 10 of the Government Code); and, the provisions of the State Contracting Manual (SCM), Chapter 5, and Local Assistance Procedures Manual (LAPM), Chapter 10, which are not inconsistent with this Paragraph 25, Third Party Contracts.

The SCM can be found and the following link: https://www.dgs.ca.gov/OLS/Resources/PageContent/Office-of-Legal-Services-Resources-List-Folder/State-Contracting. The LAPM can be found on the following link: https://dot.ca.gov/programs/local-assistance/guidelines-andprocedures/local-assistance-procedures-manual-lapm. b. Any contract entered into as a result of this RGA shall contain all the provisions stipulated in this RGA to be applicable to AGENCY’s subrecipients, contractors, and subcontractors. Copies of all agreements with subrecipients, contractors, and subcontractors must be submitted to the CALTRANS Contract Manager.
c. CALTRANS does not have a contractual relationship with the AGENCY’s subrecipients, contractors, or subcontractors and the AGENCY shall be fully responsible for all work performed by its subrecipients, contractors, or subcontractors.
d. Prior authorization in writing by the CALTRANS Contract Manager shall be required before AGENCY enters into any non-budgeted purchase order or sub-agreement for supplies, or consultant services. AGENCY shall provide an evaluation of the necessity or desirability of incurring such costs. AGENCY shall retain all receipts for such purchases or services and shall submit them with invoices per Section III–Payment and Invoicing, Paragraph 15(e)(4), above.
e. Any contract entered into by AGENCY as a result of this RGA shall mandate that travel and per diem reimbursements and third-party contract reimbursements to subrecipients, contractors, or subcontractors will be allowable as Project costs only after those costs are incurred and paid for by the subrecipients, contractors, and subcontractors. Travel expenses and per diem rates for subcontractors shall be reimbursed pursuant to Section III–Payment and Invoicing, Paragraph 15c, above.

27. Drug-Free Workplace Certification
By signing this RGA, AGENCY certifies under penalty of perjury under the laws of California that AGENCY will comply with the requirements of the Drug-Free Workplace Act of 1990 (Gov. Code Sections 8350 et seq.) and will provide a Drug-Free workplace by doing all the following:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required by Government Code Section 8355(a)(1). b. Establish a Drug-Free Awareness Program as required by Government Code Section 8355(a)(2) to inform employees about all the following:
1) The dangers of drug abuse in the workplace;
2) The person's or organization's policy of maintaining a Drug-Free workplace; 3) Any available counseling, rehabilitation, and employee assistance programs; and 4) Penalties that may be imposed upon employees for drug abuse violations. c. Provide, as required by Government Code Section 8355(a)(3), that every employee who works on the proposed contract or grant:
1) Will receive a copy of the company's Drug-Free Policy Statement; and 2) Will agree to abide by the terms of the company's statement as a condition of employment on the contract or grant.
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d. Failure to comply with these requirements may result in suspension of payments under this RGA or termination of this RGA or both, and AGENCY may be ineligible for the award of any future state contracts if CALTRANS determines that any of the following has occurred: (1) AGENCY has made a false certification or, (2) AGENCY violates the certification by failing to carry out the requirements as noted above.

28. Relationship of Parties
It is expressly understood that this RGA is an agreement executed by and between two (2) independent governmental entities and is not intended to, and shall not be construed to, create the relationship of agent, servant, employee, partnership, joint venture or association, or any other relationship whatsoever other than as provided in Paragraph 25 above.

29. State-Owned Data
a. AGENCY agrees to comply with the following requirements to ensure the preservation, security, and integrity of State-owned data on portable computing devices and portable electronic storage media:
1) Encrypt all State-owned data stored on portable computing devices and portable electronic storage media using government-certified Advanced Encryption Standard (AES) cipher algorithm with a 256-bit or 128-bit encryption key to protect CALTRANS data stored on every sector of a hard drive, including temp files, cached data, hibernation files, and even unused disk space.
2) Data encryption shall use cryptographic technology that has been tested and approved against exacting standards, such as FIPS 140-2 Security Requirements for Cryptographic Modules.
3) Encrypt, as described above, all State-owned data transmitted from one computing device or storage medium to another.
4) Maintain confidentiality of all State-owned data by limiting data sharing to those individuals contracted to provide services on behalf of the State, and limit use of State information assets for State purposes only.
5) Install and maintain current anti-virus software, security patches, and upgrades on all computing devices used during the course of the RGA.
6) Notify CALTRANS Contract Manager immediately of any actual or attempted violations of security of State-owned data, including lost or stolen computing devices, files, or portable electronic storage media containing State-owned data.
7) Advise the owner of the State-owned data, AGENCY Information Security Officer, and AGENCY Chief Information Officer of vulnerabilities that may present a threat to the security of State-owned data and of specific means of protecting that State-owned data. b. AGENCY agrees to use the State-owned data only for State purposes under this RGA. c. AGENCY agrees to not transfer State-owned data to any computing system, mobile device, or desktop computer without first establishing the specifications for information integrity and security as established for the original data file(s) (State Administrative Manual (SAM) Section 5335.1).

30. Assumption of Risk and Indemnification Regarding Exposure to Environmental Health Hazards
In addition to, and not a limitation of, Contractor’s indemnification obligations contained elsewhere in this Agreement, Contractor hereby assumes all risks of the consequences of exposure of 203
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Contractor’s employees, agents, Subcontractors, Subcontractors’ employees, and any other person, firm, or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, to any and all environmental health hazards, local and otherwise, in connection with the performance of this Agreement. Such hazards include, but are not limited to, bodily injury and/or death resulting in whole or in part from exposure to infectious agents and/or pathogens of any type, kind or origin. Contractor also agrees to take all appropriate safety precautions to prevent any such exposure to Contractor’s employees, agents, Subcontractors, Subcontractors’ employees, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement. Contractor also agrees to indemnify and hold harmless Caltrans, the State of California, and each and all of their officers, agents and employees, from any and all claims and/or losses accruing or resulting from such exposure. Except as provided by law, Contractor also agrees that the provisions of this paragraph shall apply regardless of the existence or degree of negligence or fault on the part of Caltrans, the State of California, and/or any of their officers, agents and/or employees.

31. Mandatory Organic Waste Recycling
It is understood and agreed that pursuant to Public Resources Code Sections 42649.8 et seq., if Contractor generates two (2) cubic yards or more of organic waste or commercial solid waste per week, Contractor shall arrange for organic waste recycling services or commercial waste recycling services that separate/source organic waste recycling. Contractor shall provide proof of compliance, i.e. organic waste recycling services or commercial waste recycling services that separate/source organic waste recycling, upon request from CALTRANS Contract Manager.

32. Project Close Out/Final Product
a. AGENCY will provide an ADA accessible electronic version of the final product(s) to the CALTRANS Contract Manager. The Final Product shall credit the Caltrans Sustainable Transportation Planning Grant Program’s financial participation on the cover or title page. b. CALTRANS reserves the right to withhold final payment to AGENCY pending receipt of final product(s) from AGENCY to CALTRANS Contract Manager.

33. Certification and Assurances
AGENCY will complete and sign a "Certification and Assurances for FTA Assistance" every year until the Project is closed out in accordance with Section III, Paragraph 31, Project Close Out/Final Product, above.

34. Federal Funding Requirements
Disadvantaged Business Enterprise Assurances
a. The recipient shall not discriminate on the basis of race, color, national origin, or sex, in the award and performance of any USDOT-assisted contract or in the administration of its DBE Program or the requirements of 49 CFR, Part 26. The recipient shall take all necessary and reasonable steps under 49 CFR, Part 26, to ensure nondiscrimination in the award and administration of USDOT-assisted contracts. The recipient’s DBE Program, as required by 49 CFR, Part 26, and as approved by USDOT, is incorporated by reference in this RGA.

Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this RGA.

Upon notification by the applicable USDOT agency to the recipient of its failure to carry out its approved program, the USDOT may impose sanctions as provided for under 49 CFR, Part 26.

They may also, in appropriate cases, refer the matter for enforcement under 18 USC 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 USC 3801 et seq.). 204
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b. The AGENCY, subrecipient, contractor, or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The AGENCY shall carry out applicable requirements of 49 CFR, Part 26, in the award and administration of USDOT Federally-assisted contracts. Failure by the AGENCY to carry out these requirements is a material breach of this contract, which may result in the termination of the contract or such other remedy as the recipient deems appropriate, which may include, but is not limited to:
(1) Withholding monthly progress payments
(2) Assessing sanctions
(3) Liquidated damages
(4) Disqualifying the Contractor from future bidding as non-responsible Each subcontract signed by the bidder must include this assurance.

Title VI Assurances
A. Appendix A
During the performance of this RGA, AGENCY, for itself, its assignees, and successors in interest (hereinafter referred to as “AGENCY”) agrees as follows:

1. Compliance with Regulations: AGENCY (hereinafter includes consultants) will comply with the Acts and the Regulations relative to Non-discrimination in Federally-assisted programs of the US Department of Transportation, FTA, as they may be amended from time to time, which are herein incorporated by reference and made part of this RGA.

2. Non-discrimination: AGENCY, with regard to the work performed by it during the RGA, will not discriminate on the grounds of race, color, national origin, age, sex, or disability in the selection and retention of subcontractors, including procurement of materials and leases of equipment. AGENCY will not participate directly or indirectly in the discrimination prohibited by the Acts and the Regulations, including employment practices when the RGA covers any activity, project, or program set forth in Appendix B of 49 CFR, Part 21.

3. Solicitations for Contracts or Subcontracts, Including Procurements of Materials and Equipment: In all solicitations, either by competitive bidding or negotiation made by the AGENCY for work to be performed under a subcontract, including procurements of materials or leases of equipment, each potential subcontractor or supplier will be notified by the AGENCY of AGENCY’s obligations under this RGA and the Acts and the Regulations relative to Non-discrimination on the grounds of race, color, national origin, age, sex, or disability.

4. Information and Reports: Contractor will provide all information and reports required by the Acts, Regulations, and directives issued pursuant thereto and will permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by Caltrans or the FHWA to be pertinent to ascertain compliance with such Acts, Regulations, and instructions. Where any information required of a Contractor is in the exclusive possession of another who fails or refuses to furnish the information, Contractor will so certify to Caltrans or the FHWA, as appropriate, and will set forth what efforts it has made to obtain the information.

5. Sanctions for Noncompliance: In the event of Contractor’s noncompliance with the nondiscrimination provisions of this Agreement, Caltrans will impose such Agreement sanctions as it or the FHWA may determine to be appropriate, including, but not limited to:
a) Withholding of payments to Contractor under the Agreement until Contractor complies, and/or
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b) Cancelling, terminating, or suspending an Agreement, in whole or in part.

6. Incorporation of Provisions: AGENCY will include the provisions of paragraphs (A) through (F) in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Acts, the Regulations, and directives issued pursuant thereto. AGENCY will take action with respect to any subcontract or procurement as CALTRANS or the FTA may direct as a means of enforcing such provisions, including sanctions for noncompliance. Provided, that if AGENCY becomes involved in, or threatened with litigation by a subcontractor, or supplier because of such direction, AGENCY may request CALTRANS to enter into such litigation to protect the interest of the State. In addition, AGENCY may request the United States to enter into the litigation to protect the interests of the United States.

B. Appendix E (Pertinent Non-Discrimination Authorities) During the performance of this contract, the Contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the "Contractor") agrees to comply with the following nondiscrimination statutes and authorities, including, but not limited to:

1. Title VI of the Civil Rights Act of 1964 (42 USC Sections 2000d et seq., 78 Stat. 252) prohibits discrimination on the basis of race, color, national origin; and 49 CFR, Part 21.

2. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 USC Sections 4601) prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects;

3. Federal-Aid Highway Act of 1973 (23 USC Sections 324 et seq.) prohibits discrimination on the basis of sex;

4. Section 504 of the Rehabilitation Act of 1973 (29 USC Sections 794 et seq.), as amended, prohibits discrimination on the basis of disability; and 49 CFR, Part 27;

5. The Age Discrimination Act of 1975 (42 USC Sections 6101 et seq.), as amended, prohibits discrimination on the basis of age;

6. Airport and Airway Improvement Act of 1982 (49 USC Sections 471 and 47123), as amended, prohibits discrimination based on race, creed, color, national origin, or sex;

7. The Civil Rights Restoration Act of 1987 (PL 100-209) broadened the scope, coverage, and applicability of Title VI of the Civil Right Act of 1964, the Age Discrimination Act of 1975, and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms "programs or activities" to include all of the programs or activities of the Federal-aid recipients, subrecipients, and contractors, whether such programs or activities are Federally funded or not;

8. Titles II and III of the Americans with Disabilities Act, which prohibit discrimination of the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 USC Sections 12131-12189) as implemented by Department of Transportation regulations 49 CFR, Parts 37 and 38;

9. The Federal Aviation Administration's Non-discrimination statute (49 USC Section 47123) prohibits discrimination on the basis of race, color, national origin, and sex;

10. Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-income Populations, which requires each Federal agency to conduct its programs, policies, and activities that substantially affect human health or the environment in a manner that ensures that such programs, policies, and activities do not 206
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have the effect of excluding persons (including populations) from participation in, denying persons (including populations) the benefits of, or subjecting persons (including populations) to discrimination under, such programs, policies, and activities, because of their race, color, or national origin, and requires each Federal agency to make achieving environmental justice part of its mission by identifying and addressing, as appropriate, disproportionately high and adverse human health or environmental effects of its programs, policies, and activities on minority and low-income populations;

11. Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency (LEP), and resulting agency guidance, national origin discrimination includes discrimination because of LEP. To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100);

12. Title IX of the Education Amendments of 1972 (20 USC 1681 et seq.), as amended, which prohibits you from discriminating because of sex in education programs or activities.

35.Avoidance of Infringement:

In performing services under this RGA, AGENCY and its employees agree to avoid designing or developing any items that infringe one (1) or more patents or other intellectual property rights of any third party. If AGENCY or its employees become aware of any such possible infringement in the course of performing any Work under this RGA, AGENCY or its employees shall immediately notify CALTRANS in writing.

36.ADA Compliance
All entities that provide electronic or information technology or related services that will be posted online by CALTRANS must be in compliance with Government Code Sections 7405 and 11135 and the Web Content Accessibility Guidelines (WCAG) 2.0 or subsequent version, published by the Web Accessibility Initiative of the World Wide Web Consortium at a minimum Level AA success. All entities will respond to and resolve any complaints/deficiencies regarding accessibility brought to their attention.

37. Electronic Signatures
Each party agrees that the electronic signatures, whether digital or encrypted, of the parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures for this Agreement. Documents that are referenced by this Agreement may still require manual signatures.

38. Executive Order N-6-22 – Russia Sanctions
On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law unless the contract has been Federalized (i.e. there is federal participation in any phase). The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the State determine Contractor is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement. The State shall provide Contractor advance written notice of such termination, allowing Contractor at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State. 207
City of Soledad
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Section IV
Attachments:

The following attachments are incorporated into and are made a part of this RGA by this reference and attachment.

I. AGENCY Resolution
ll. Scope of Work and Project Timeline
III. Grant Application Guide
In Witness Whereof, the parties hereto have executed this RGA on the day and year first herein above written:

STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION

CITY OF SOLEDAD
By: By:

Printed Name: Printed Name: MEGAN HUNTER
Title: Contract Officer Title: CITY MANAGER
Date: Date:

By:

Printed Name:

Title:

Date:

By:

Printed Name:

Title:

Date:
208

Soledad City CouncilAugust 5, 2026

Soledad City Council
August 5, 2026