Santa Cruz City Council
February 13, 2024

CITY OF SANTA CRUZ
809 Center Street
Santa Cruz, California 95060

CITY COUNCIL AGENDA
Regular Meeting - February 13, 2024
Updated February 9, 2024 – Item 19.2
11:00 A.M. CLOSED SESSION, ZOOM/COURTYARD CONFERENCE ROOM 12:30 P.M. ORAL COMMUNICATIONS, CONSENT, GENERAL BUSINESS AND PUBLIC

HEARINGS, ZOOM/COUNCIL CHAMBERS
The meeting may be viewed remotely, using any of the following sources:
 Click on Zoom link (no time delay): https://zoom.us/j/94684401344  Online at http://www.cityofsantacruz.com/government/city-council/council-meetings  Online at Watch – Community Television of Santa Cruz County  Comcast Channel 25
Or: Call any of the numbers below. If one is busy, try the next one.  1-833-548-0276 (Toll Free)
 1-833-548-0282 (Toll Free)
 1-877-853-5247 (Toll Free)
 1-669-900-9128
 Enter the meeting ID number: 946 8440 1344
 When prompted for a Participant ID, press #.
 Press *9 on your phone to “raise your hand” when the Mayor calls for public comment.  It will be your turn to speak when the Mayor calls on you. Press *6 to unmute yourself. The timer will then be set.

Correspondence to be included in the agenda packet must be received by 5:00 pm on Monday, February 12th
PLEASE NOTE:
 Council may take a break(s) as needed.
 Requests for extra speaking time on items other than Oral Communications must be made by 5:00 p.m. on Sunday, February 11th by emailing the Mayor and the City Clerk.

Approval will be confirmed via email.
[email protected] [email protected]
February 13, 2024 City Council 2
The City of Santa Cruz does not discriminate against persons with disabilities. Out of consideration for people with chemical sensitivities we ask that you attend fragrance free. Upon request, the agenda can be provided in a format to accommodate special needs. Additionally, if you wish to attend this public meeting and will require assistance such as an interpreter for American Sign Language, Spanish, or other special equipment, please call the City Clerk’s Department at 420-5030 at least five days in advance so that we can arrange for such special assistance, or email [email protected]. The CalRelay system number: 1-800-735-2922.

Si desea asistir a esta reunión pública y necesita ayuda - como un intérprete de lenguaje de señas americano, español u otro equipo especial - favor de llamar al Departamento de la Secretaría de la Ciudad al 420-5030 al menos cinco días antes para que podamos coordinar dicha asistencia especial o envié un correo electrónico a [email protected]. El número del sistema Cal-Relay es: 1-800-735-2922.

Agenda and Agenda Packet Materials: The City Council agenda and the complete agenda packet containing public records, which are not exempt from disclosure pursuant to the California Public Records Act, are available for review on the City’s website:
www.cityofsantacruz.com/councilmeetings and at the Office of the City Clerk located at 809 Center Street, Room 9, Santa Cruz, California, during normal business hours.

Agenda Materials Submitted after Publication of the Agenda Packet: Pursuant to Government Code §54957.5, public records related to an open session agenda item submitted after distribution of the agenda packet are available at the same time they are distributed or made available to the legislative body on the City’s website at: www.cityofsantacruz.com/councilmeetings and are also available for public inspection at the Office of the City Clerk, 809 Center Street Room 8, Santa Cruz, California, during normal business hours, and at the Council meeting.

Need more information? Contact the City Clerk’s office at 831-420-5030. 11:00 AM
Closed Session

1. Conference with Legal Counsel - Existing Litigation (Government Code §54956.9(d)(1))
1) Alicia Lopez v. Mary McCoy, et al.
(Santa Cruz Superior Court Case No. 18CV03301)
2) Don’t Morph the Wharf! v. City of Santa Cruz et al.
(Santa Cruz County Superior Court Case No. 20CV02731)
February 13, 2024 City Council 3
Closed Session (continued)

2. Real Property Negotiations (Government Code §54956.8) 1) Property: 1126 Pacific Avenue
APN: 005-153-10
Owner: Frederick Meng
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Frederick Meng dba Café Delmarette
Under Negotiation: Price, terms of payment, or both
2) Property: 1016 Cedar Street
APN: 005-042-36
Owner: Farouk Algosaibi
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Farouk Algosaibi dba Café Limelight
Under Negotiation: Price, terms of payment, or both
3) Property: 1520 K2 Pacific Avenue
APN: No APN / Public Right of Way (Portion)
Owner: Sunny Kavil
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Sunny Kavil dba Opulence Under Negotiation: Price, terms of payment, or both
4) Property: 37 Municipal Wharf
APN: 007-341-03
Owner: Stagnaro Fish Corporation (c/o Dino Stagnaro) dba Gilda's City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Stagnaro Fish Corporation Under Negotiation: Price, terms of payment, or both
5) Property: 59 Municipal Wharf
APN: 007-351-04
Owner: Stagnaro Bros. Seafood, Inc.

City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Stagnaro Bros. Seafood, Inc.

Under Negotiation: Price, terms of payment, or both
February 13, 2024 City Council 4
City Council
12:30 PM
Call to Order
Roll Call
Oral Communications Announcement – Members of the public may address Council on matters not on the agenda, but within the jurisdiction of the Council. 30 minutes is allocated for Oral Communications. No extra time for groups will be granted.

Oral Communications
Presentation

3. Mayoral Proclamation Declaring February 13, 2024 as Leslie Conner Day Presiding Officer's Announcements
Statements of Disqualification
Additions and Deletions
City Attorney Report on Closed Session
Council Meeting Calendar

4. The City Council will review the meeting calendar attached to the agenda and revise it as necessary.

February 13, 2024 City Council 5
Consent Agenda

5. Resolution Declaring the Existence of a State of Emergency Arising from December 2023 and January and February 2024 Winter Storms (CA/CM)
Resolution declaring the existence of a state of emergency arising from December 2023 and January and February 2024 winter storms.

6. Minutes of the January 23, 2024 City Council Meeting (CC) Motion to approve as submitted.

7. Integrated Regional Water Management – Memorandum of Agreement Renewal, Local Project Sponsorship Agreement Authorization, DecisionSupport Tool Approval of Professional Services Agreement (CM/PW/WT) Motion to authorize the City Manager to:
1) Execute the Memorandum of Agreement for the Santa Cruz Integrated Regional Water Management Program and Complementary Efforts in a form approved by the City Attorney;
2) Execute a Local Project Sponsor Agreement between the Regional Water Management Foundation and the City of Santa Cruz, in a form approved by the City Attorney; accept the funds; and execute all standard agreements for such funds and any amendments thereto and any other documents necessary to secure the Proposition 1 Integrated Regional Water Management Round 2 Implementation Grant Agreement funds for the Projects Entitled Project 3: Decision-Support Tool – Understanding Climate Influenced River Flooding and Project 4:

Recreational Vehicle Sewage Dump Station in a form approved by the City Attorney; and
3) Execute an agreement in a form to be approved by the City Attorney with Environmental Science Associates (ESA) for consulting services for Project 3: Decision-Support Tool and to authorize the City Manager to execute future contract amendments within the approved project budget.

February 13, 2024 City Council 6
Consent Agenda (continued)

8. Resolution Establishing the 2024 Security Deposit Interest Rate for Residential Rental Property (ED)
Resolution establishing the 2024 interest rate for the residential security deposits at 0.03% and rescinding Resolution No. NS-30,096.

9. City Participation in County-wide Landlord Incentive Program – Contract Amendment and Budget Adjustment (ED)
Motion to:
1) Approve an amendment to the Agreement between the City of Santa Cruz and the Housing Authority of Santa Cruz County for the Countywide Landlord Incentive Program, authorizing and directing the City Manager to modify the existing Agreement in a form approved by the City Attorney; and
2) Adopt a resolution amending the FY 2024 budget to increase the allocation to the Landlord Incentive Program by $15,000 for the 2023- 2024 Program Year.

10. Annual Comprehensive Financial Report (ACFR) and Popular Annual Financial Report (PAFR) for the Fiscal Year Ended June 30, 2023 (FN) Receive and file the Annual Comprehensive Financial Report (ACFR), and related reports, for the fiscal year ended June 30, 2023.

11. Neary Street Sewer Rehabilitation (c401511) – Authorization to Advertise and Award (PW)
Motion to approve the plans and specifications for the Neary Street Sewer Rehabilitation (c401511), authorize staff to advertise for bids, and award the contract. The City Manager is hereby authorized and directed to execute the contract as authorized by Resolution No. NS27,563. The Director of Public Works is authorized to execute changes orders within the approved project budget.

February 13, 2024 City Council 7
Consent Agenda (continued)

12. HSIP10: Unsignalized Crossing Improvement Project (c402215) – Notice of Completion (PW)
Motion to accept the work of Kraemer Engineering, Inc. (Salinas, CA) as completed per the plans and specifications and authorize the filing of the Notice of Completion for HSIP10: Unsignalized Crossing Improvement Project (c402215).

13. Resource Recovery Facility Public Tipping Area Concrete Project 2024 (c401811) – Authorization to Advertise for Bids and Award Contract (PW)
Motion to approve the plans and specifications for the Resource Recovery Facility Public Tipping Area Concrete Project (c401811) and authorize staff to advertise for bids and award the contract. The City Manager is hereby authorized and directed to execute the contract as authorized by Resolution No. NS-27,563. The Director of Public Works is authorized to execute change orders within the approved project budget.

14. Newell Creek Pipeline Replacement Project: Felton/Graham Hill – Award of Professional Engineering Services During Construction to Carollo Engineers (WT)
Motion authorizing the City Manager to execute an agreement in a form to be approved by the City Attorney with Carollo Engineers (Walnut Creek, CA) for professional engineering services during construction for the Newell Creek Pipeline Replacement Project: Felton/Graham Hill Water Treatment Plant section in the amount of $797,742 and to authorize the Water Director to execute future contract amendments within the approved project budget.

End Consent Agenda
February 13, 2024 City Council 8
Consent Public Hearings

15. 2nd Reading and Final Adoption of Ordinance No. 2024-01 Implementing the CalPERS Contract Amendment (CC)
Motion to:
1) Rescind prior action of the adoption of Ordinance No. 2024-01 implementing the CalPERS contract amendment from the January 23, 2024 City Council meeting; and
2) Adopt Ordinance No. 2024-01 implementing the CalPERS contract amendment.

16. 2nd Reading and Final Adoption of Ordinance Number 2024-03 Municipal Code Amendments Relating to Objective Design Standards and Permit Processing Responding to Modifications Requested by the California Coastal Commission (PL)
Motion to adopt Ordinance No. 2024-03 amending various parts Chapter

24.04 of the Santa Cruz Municipal Code related to permit processing in response to action by the California Coastal Commission.

17. 2nd Reading and Final Adoption of Ordinance No. 2024-05 Military Equipment Purchase Request and Policy Update per Assembly Bill 481 (PD)
Motion to:
1) Adopt Ordinance No. 2024-05 amending City of Santa Cruz Municipal Code (“SCMC”) Chapter 9.90 “AB 481 Military Equipment Use,” adopting an amended Military Equipment Use Policy (Policy) and incorporating the acquisition of unmanned aerial systems (UAS); 2) Adopt a resolution amending the FY 2024 budget in the amount of $170,942 from the Police Asset Seizure 214 Fund, and
3) Approve a five-year purchase with Axon, Inc. for a drone program, with Year 1 totaling $114,844, and authorize the City Manager to execute a contract in a form approved by the City Attorney.

February 13, 2024 City Council 9
Public Hearing
Please note the below process for item 18:
 Staff presentation
 Appellant presentation (maximum twenty minutes)
 Opponents/applicant or representative presentation (maximum twenty minutes)
 Public Comment (maximum one hour)
 Appellant rebuttal (maximum five minutes)
 Council deliberation and action

18. 900 High Street: CP23-0164 (APN 001-022-40). Appeal of the Planning Commission Approval of the Development Proposal at 900 High Street Involving a Minor Land Division, Design Permit, Slope Development Permit, Density Bonus Request, and Heritage Tree Removal Permit to Divide a Parcel Into Two Lots and Construct a 40 Unit, Four-Story Apartment Building Within 20 Feet of a 30-Percent Slope and to Remove 14 Heritage Trees on a Site With an Existing Church in the R-1- 10 (Single Family Residence) Zone District. (Environmental Determination: Exempt Under PRC Section 21083.3/CEQA Guidelines Section 15183), Applicant: Diana Alfaro, Workbench, Filed 11/30/22 (PL)
Resolution denying the appeal of Norman Tardif, representing Springtree Homeowner’s Association (HOA) and Westlake Neighbors Association, thereby upholding the Planning Commission’s acknowledgment of the environmental determination and approval of the Minor Land Division, Design Permit, Slope Development Permit, Density Bonus Request, and Heritage Tree Removal Permit based on the findings listed below and the Conditions of Approval attached as “Exhibit A.”
February 13, 2024 City Council 10
General Business

19. Mid-Year Budget Update

19.1. FY 2024 Budget Adjustments and Information on City’s Financial Status (FN)
Motion to:
1) Adopt a resolution amending the fiscal year (FY) 2024 budget appropriation of expenditures to all funds as listed in Exhibit A, in the amount of $14,274,517, including an increase of $721,206 to the General Fund, and a total appropriation decrease of revenues as listed in Exhibit A in the amount of $10,782,600 to all funds, including a net addition of $358,844 to the General Fund,
2) Authorize the City Manager to allocate budgetary changes within the applicable funds and departments, and
3) Receive an update on the City of Santa Cruz’s financial status.

The below item was updated to correct the affected departments on agenda as well as the draft resolution.

19.2. Resolution Amending the City of Santa Cruz Personnel Complement and Classification and Compensation Plans for the Public Works, Planning, Parks and Recreation, Police, Economic Development, Fire, and Water Departments (HR)
Resolution amending the Classification and Compensation Plans and the Mid-Year 2024 Budget Personnel Complement by approving
classification and position changes in certain departments.

General Business

20. First Reading of an Ordinance Amending Uncodified Ordinance No. 2022-16 Extending Temporary Use of Certain Adjacent Public Street and Outdoor Areas for Eligible Businesses (ED)
Introduce for publication an ordinance amending uncodified Ordinance No. 2022-16 extending temporary use of certain adjacent public street and outdoor areas for eligible businesses that extends the temporary period for commercial use on private property from March 31, 2024 to May 31, 2025.

February 13, 2024 City Council 11
General Business (continued)

21. Review of Recent State of California Legislation Impacting Local Control and 2023 Land Use and Housing Legislation Update (PL) Motion to accept the review of recent state of California legislation impacting local control and 2023 land use and housing legislation update.

Adjournment
February 13, 2024 City Council 12

INFORMATION ITEMS PREVIOUSLY DISTRIBUTED TO CITY COUNCILMEMBERS None issued.

MAYOR'S PROCLAMATIONS
ADDENDUM TO CITY COUNCIL AGENDA – FEBRUARY 13, 2024

22. Proclaiming February 2, 2024 as “Rosemary Menard Day” and encouraging all citizens to join in honoring her; recognizing the contributions of her work to ensure public health and safety by providing a clean, safe, reliable supply of water to our community; and wishing her well in her retirement.

Advisory Body Appointments
The following positions are either currently vacant or the terms are due to expire.

Council will make the appointments at a future meeting.

Commission for the Prevention of
Violence Against Women
One opening, to be appointed by Councilmember
Watkins.

County Latino Affairs Commission One opening – at-large nomination Public Hearing
If, in the future, you wish to challenge in court any of the matters on this agenda for which a public hearing is to be conducted, you may be limited to raising only those issues which you (or someone else) raised orally at the public hearing or in written correspondence received by the City at or before the hearing.

Any person seeking to challenge a City Council decision made as a result of a proceeding in which, by law, a hearing is required to be given, evidence is required to be taken, and the discretion in the determination of facts is vested in the City Council, shall be required to commence that action either 60 days or 90 days following the date on which the decision becomes final as provided in Code of Civil Procedure Section 1094.6 Please refer to code of Civil Procedure 1094.6 to determine how to calculate when a decision becomes “final.” The 60-day rule applies to all public hearings conducted pursuant to the City’s Zoning Ordinance, Title 24, Santa Cruz Municipal Code. The 90-day rule applies to all other public hearings.

Meeting Type
Holiday
Jewish Holiday
Regular Meeting
Special Meeting (will be added as scheduled)
Study Session (will be added as scheduled)
Budget Hearing
DATE Location Meeting Type
February 19
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public April 22/23
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public May 27
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public May 29 Council Chambers Budget Hearing
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public June 19
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public July 4
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public September 2
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public October 2/3
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public October 11/12
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public November 11
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public City Council Meeting Calendar for 2024
June 25
September 10
September 24
City Hall Closure - Presidents' Day
February 27
City Hall Closure - Juneteenth
Please note: Meeting times are not final and are likely to change Passover (City observed - sundown to sundown)
August 13
March 12
March 26
May 14
April 9
April 30
June 11
May 28
City Hall Closure - Labor Day
August 27
July 9 and 23 Meetings Cancelled - CITY COUNCIL DARK
City Hall Closure - Independence Day
City Hall Closure - Memorial Day
Rosh Hashanah (City observed - sundown to sundown)
November 12
October 8
October 22
City Hall Closure - Veteran's Day (observed)
Yom Kippur (City observed - sundown to sundown)

4.1 Meeting Type
Holiday
Jewish Holiday
Regular Meeting
Special Meeting (will be added as scheduled)
Study Session (will be added as scheduled)
Budget Hearing
DATE Location Meeting Type
City Council Meeting Calendar for 2024

Please note: Meeting times are not final and are likely to change Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public November 28
November 29
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public December 25/26
December 25
November 26
December 10
City Hall Closure - Thanksgiving Day
City Hall Closure - Day After Thanksgiving Day
December 24 Meeting Cancelled - CITY COUNCIL DARK
City Hall Closure - Christmas Day
Hanukkah (City observed - sundown to sundown)

4.2 City Council

AGENDA REPORT
DATE: 02/01/2024
AGENDA OF: 02/13/2024
DEPARTMENT: City Attorney/City Manager
SUBJECT: Resolution Declaring the Existence of a State of Emergency Arising from December 2023 and January and February 2024 Winter Storms (CA/CM) RECOMMENDATION: Resolution declaring the existence of a state of emergency arising from December 2023 and January and February 2024 winter storms.

BACKGROUND: Storms in December 2023 and January and February 2024 have caused significant flooding and other storm impacts, including damage to property within the City of Santa Cruz, and impacts to persons experiencing homelessness. On February 6, 2024, the City Manager issued a “Proclamation of Existence of Local Emergency.” DISCUSSION: Government Code section 8630 authorizes a governing body of a city or an official designated by ordinance to proclaim the existence of a local emergency. Santa Cruz Municipal Code section 2.20.030 empowers the Director of Emergency Services to proclaim the existence or threatened existence of a local emergency when the City is affected or likely to be affected by a public calamity or disaster, subject to confirmation by the City Council at the “earliest practicable time.” During the existence of such emergency, the Director of Emergency Services is also authorized, pursuant to Section 2.20.040(1), to “[m]ake and issue rules and regulations on matters reasonably related to the protection of life and property as affected by such emergency,” also subject to confirmation by the City Council “at the earliest practicable time.”
The attached resolution, if adopted by the City Council, would again formally declare the existence of an emergency, facilitating the City Manager’s exercise of emergency powers to respond to the December 2023 and January and February 2024 Winter Storm Emergency.

During a declared emergency, the City is empowered to:
• More effectively respond to the emergency;
• Seek and utilize mutual aid;
• Potentially obtain reimbursement from Cal OES and FEMA; and • Ensure that the City of Santa Cruz staff have all the necessary tools and powers at their disposal to respond to the emergency.

5.1 FISCAL IMPACT: Actions taken by the City during a declared emergency are potentially recoverable from Cal OES (California Governor’s Office of Emergency Services) and FEMA (Federal Emergency Management Agency).

Prepared By:

Stephanie Duck
Deputy City Attorney
Submitted By:

Tony Condotti
City Attorney
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

5.2 RESOLUTION NO. NS-XX,XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ DECLARING THE EXISTENCE OF A LOCAL EMERGENCY ARISING FROM DECEMBER 2023 AND JANUARY AND FEBRUARY 2024 WINTER STORMS
WHEREAS, Government Code section 8630 authorizes the City Council or an official designated by ordinance to proclaim the existence of a local emergency; and WHEREAS, Santa Cruz Municipal Code section 2.20.030 empowers the City Manager, as the director of emergency services, to proclaim the existence or threatened existence of a local emergency when the City is affected or likely to be affected by a public calamity, subject to confirmation by the City Council at the earliest practicable time; and WHEREAS, on December 28 and 30th, 2023, the City of Santa Cruz experienced a large winter swell event involving significant rain and hazardous ocean conditions, causing an estimate of $2.5 million in damage along West Cliff Drive and the Santa Cruz Wharf (the “December 2023 Winter Storm”); and
WHEREAS, the Santa Cruz region has continued to experience heavy rainfall characterized as atmospheric river storms throughout January and February 2024 (January and February 2024 Winter Storms); and
WHEREAS, the January 2024 Winter Storms included significant rainfall on January 22, 2024 that contributed to flooding within the City of Santa Cruz and specifically to Cypress Point Apartments; and
WHEREAS, soil conditions in the City of Santa Cruz remain saturated as a result of the December 2023 Winter Storm and January and February 2024 Winter Storms, with rainfall expected to continue, increasing the potential for flooding and other storm impacts, including downed trees, power outages, mudslides, erosion, and impacts to persons experiencing homelessness; and
WHEREAS, on January 30, 2024, the County of Santa Cruz Board of Supervisors ratified Local Emergency for the December 2023 Coastal Storms, as proclaimed by the County Administrative Officer as the Director of Emergency Services on January 3, 2024.

WHEREAS, in light of the foregoing and pursuant to his authority as Emergency Services Director, on February 6, 2024, the City Manager declared the existence of a local emergency (the "Emergency Proclamation").

5.3 RESOLUTION NO. NS-XX,XXX
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz (City Council) as follows:

A. The City Council hereby declares that a local emergency, as defined in Government Section 8558(c), Public Contract Code Section 1102 and City of Santa Cruz Municipal Code Section 2.20.020, now exists in the City of Santa Cruz and has existed since on or around December 28, 2023 at 12:00 AM.

B. This Resolution shall remain in full force and effect and shall thereafter terminate on the sixtieth (60th) day after its adoption, unless earlier terminated or further extended by subsequent City Council action.

PASSED AND ADOPTED this 13th day of February 2024 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: __________________________
Fred Keeley, Mayor
ATTEST: ___________________________
Bonnie Bush, City Clerk Administrator

5.4 MINUTES ARE UNOFFICIAL UNTIL APPROVED BY COUNCIL
City of Santa Cruz
809 Center Street
Santa Cruz, California 95060

MINUTES OF A CITY COUNCIL MEETING
January 23, 2024
10:00 AM
Mayor Keeley opened the City Council Closed Session at 10:01 a.m. in a public meeting via Zoom and in Council Chambers, for the purpose of announcing the agenda, and receiving public testimony.

Roll Call

Present: Councilmembers Newsome, Brown (arrived at 10:04 a.m.), Brunner, Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.

Absent: Councilmember Watkins.

Staff: City Manager M. Huffaker, Assistant City Manager L. Schmidt, City Attorney T. Condotti, Finance Director E. Cabell, Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush.

Public Comment
Mayor Keeley opened the public comment period at 10:03 a.m. There were no speakers. Mayor Keeley closed the public comment period at 10:03 a.m., at which time the meeting was closed to the public and Council adjourned to the Courtyard Conference Room.

Closed Session

1. Real Property Negotiations (Government Code §54956.8) 1) Property: 6000 La Madrona Drive, Scotts Valley
APN: 021-141-20
Owner: Scotts Valley Fire Protection District (SVFPD)
City Negotiator: Heidi Luckenbach
Negotiating Parties: City of Santa Cruz and SVFPD
Under Negotiation: Price, terms of payment, or both

6.1 January 23, 2024 CITY COUNCIL MINUTES 6702
Closed Session (continued)

1. Real Property Negotiations (Government Code §54956.8) (continued) 2) Property: 175 Sims Road
APN: 067-202-66
Owner: Yates Family Trust
City Negotiator: Heidi Luckenbach
Negotiating Parties: City of Santa Cruz and Yates Family Trust Under Negotiation: Price, terms of payment, or both
3) Property: 17-D Municipal Wharf (Santa Cruz Bay Company) APN: 007-351-02
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City and Santa Cruz Bay Company
Under Negotiation: Price, terms of payment, or both
4) Property: 17-A Municipal Wharf (Surf Life)
APN: 007-331-06
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City and Surf Life
Under Negotiation: Price, terms of payment, or both
5) Property: 501 Upper Park Road (Santa Cruz Shakespeare) APN: 009-471-02
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City and Santa Cruz Shakespeare
Under Negotiation: Price, terms of payment, or both
6) Property: 307 Church Street (Civic Auditorium)
APN: 005-071-06
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City and Santa Cruz Symphony
Under Negotiation: Price, terms of payment, or both

6.2 January 23, 2024 CITY COUNCIL MINUTES 6703
Closed Session (continued)

1. Real Property Negotiations (Government Code §54956.8) (continued) 7) Property: 1020 Cedar Street (Atlantis Fantasy World) APN: 005-042-36
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City and Atlantis Fantasy World
Under Negotiation: Price, terms of payment, or both
Items 1.1 and 1.2 involve potential acquisition by the Water Department in relation to water infrastructure projects.

Items 1.3—1.7 involve properties owned by the City of Santa Cruz, and specifically negotiations between the City as landlord and different commercial enterprises as tenants.

Council received a status report from the City Negotiators, gave direction, and no reportable action was taken.

2. Conference with Legal Counsel - Anticipated Litigation (Government Code §54956.9(d)(4))
Initiation of litigation (two potential cases to be discussed) Council received a status report on one potential anticipated litigation, gave direction, and took no reportable action.

Councilmember Brown recused herself from one potential anticipated litigation due to her work with the County of Santa Cruz. The remaining Council received a status report, gave direction, and took no reportable action.

6.3 January 23, 2024 CITY COUNCIL MINUTES 6704
City of Santa Cruz
809 Center Street
Santa Cruz, California 95060

MINUTES OF A CITY COUNCIL MEETING
January 23, 2024
12:30 PM
Call to Order – Mayor Keeley called the meeting to order at 12:32 p.m. in Council Chambers.

Roll Call

Present: Councilmembers Newsome, Brown, Watkins (arrived at 2:35 p.m.), Brunner, Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.

Absent: None.

Staff: City Manager M. Huffaker, Assistant City Manager L. Schmidt, City Attorney T. Condotti, Deputy City Manager L. Murphy, Director of Parks and Recreation T. Elliot, Water Director R. Menard, Chief People Officer S. De Leon, Director of Economic Development and Housing B. Lipscomb, Director of Information Technology K. Morgan, Chief of Fire R. Oatey, Chief of Police B. Escalante, Director of Public Works N. Nguyen, Director of Planning and Community Development L. Butler, Finance Director E. Cabell (via Zoom), Recreation Coordinator K. Mercer-Lebov, Urban Forester L. Keedy, Superintendent of Parks T. Beck, Sustainability and Resiliency Officer T. Wise-West, Transportation Planner C. Gallogly, Economic Development Manager R. Unitt, Police Sergeant J. Trog, Police Sergeant B. Burruel, Principal Management Analyst C. Brothers, Principal Planner M. VanHua, Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush.

Oral Communications Announcement - The Mayor provided a brief announcement about Oral Communications.

Oral Communications
At 12:33 p.m. Mayor Keeley opened Oral Communications for members of the public who wished to speak regarding items not listed on the City Council agenda.

Sibley Simon spoke regarding expediting the inspection process for new builds.

6.4 January 23, 2024 CITY COUNCIL MINUTES 6705
Oral Communications (continued)
Garrett spoke regarding the previous meeting, commending Council on their actions, their patience, holding an open forum, and the promotion of peace.

Unidentified person spoke regarding SafeHealthySantaCruz.com, the combined campaign between the City of Santa Cruz and the County of Santa Cruz, and the ballot measures K and L and asking each Councilmember to support and promote the measures ahead of the March election.

Unidentified person spoke regarding Assembly Bill 873 with concerns for a potentially problematic curriculum in media literacy, and misinformation that may be included as factual.

Richard Lewis spoke regarding services for veterans and asking Council to consider forming a youth commission.

At 12:43 p.m. Mayor Keeley closed Oral Communications.

Presentations

3. Age-friendly City Designation
Recreation Coordinator K. Mercer-Lebov gave a presentation on Age-Friendly City Designation and the program process.

4. Mayoral Proclamation Declaring February 2, 2024 as Rosemary Menard Day Vice Mayor Golder read from and presented a proclamation to Rosemary Menard declaring February 2, 2024 as Rosemary Menard Day.

Presiding Officer's Announcements
Statements of Disqualification – None.

Additions and Deletions – None.

City Attorney Report on Closed Session – See pages 6701—6703 for the report.

Council Meeting Calendar

5. The City Council reviewed and did not revise the meeting calendar attached to the agenda.

6.5 January 23, 2024 CITY COUNCIL MINUTES 6706
Consent Agenda
Councilmember Brunner made a comment on items 9, 10, and 17.

Councilmember Kalantari-Johnson made a comment on items 9, 10, 11, 15, and 18.

Councilmember Brown made a comment on items 11 and 18.

Councilmember Newsome made a comment on items 11 and 12.

Mayor Keeley opened the public comment period. The following people spoke:

Garrett spoke regarding item 9.

Meryl Craig spoke regarding a piece of property the City owns that he believes he was heir to. This issue was not related to an item on the Consent Agenda.

Mayor Keeley closed the public comment period.

MOTION: Councilmember Newsome moved, seconded by Vice Mayor Golder, to approve the Consent Agenda.

ACTION: The motion carried with the following vote.

AYES: Councilmembers Newsome, Brown, Brunner, Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.

NOES: None.

ABSENT: Councilmember Watkins.

DISQUALIFIED: None.

6. Resolution Extending the Emergency Declaration in Connection with the December 2022 and January 2023 Winter Storms (CA/CM)
Resolution No. NS-30,274 was adopted extending by sixty days the Local Emergency Declaration in connection with the December 2022 and January 2023 winter storms.

7. Minutes of the January 9, 2024 City Council Meeting (CC) Motion carried to approve as submitted.

6.6 January 23, 2024 CITY COUNCIL MINUTES 6707
Consent Agenda (continued)

8. Farallon Strategies – Change Order (CM)
Motion carried authorizing the City Manager to approve a change order in the amount of $103,000 with Farallon Strategies to facilitate the completion of the 50-year vision for West Cliff.

9. Authorization for Application and Acceptance of California Interagency Council on Homelessness Grant Funds for Encampment Resolution Funding Program Round 3 (ERF-3-R) (CM)
Resolution No. NS-30,275 was adopted authorizing the City Manager to apply for, accept, and appropriate funds the California Interagency Council on Homelessness Grant Funds for Encampment Resolution Funding Program Round 3 (ERF-3-R).

10. Severe Weather Shelter Pilot Program (CM)
Motion carried to approve a Memorandum of Understanding with the County of Santa Cruz in the amount of $100,271.70 to facilitate the operation of a Severe Weather Shelter Pilot Program during the period of December 1, 2023 and March 31, 2024.

11. State Legislation on Rental Applications (CN)
Motion carried to direct the Mayor to send a letter urging State Legislators to address disproportionately high fees imposed on renters during the application process, as outlined in this agenda report.

6.7 January 23, 2024 CITY COUNCIL MINUTES 6708
Consent Agenda (continued)

12. Pacific Station North Affordable Housing and METRO Project Administrative Approvals (ED)
Motion carried to:
 Authorize the City Manager to approve necessary easements including but not limited to ingress/egress, public access, utilities, and stormwater easements in Maple Alley, Pacific Station, and the Project as specified in the City building permit(s) for the benefit of Pacific Station and the Project and terminate outdated easements that were left over from prior development and do not benefit the City or the Project. Easement termination and easement agreements will be in a form to be approved by City Attorney, on behalf of the City;
 Authorize the City Manager to approve modification of the Project Conditions of Approval to allow recording of the Project’s Lot Line Adjustment (already approved by Council), before demolition and construction start;
 Authorize the City Manager to execute funding documents including agreements, amendments, and related documents in a form to be approved by City Attorney, on behalf of the City for the $2 million Federal set-aside awarded previously to the project as a construction loan; and  Authorize the City Manager to approve up to $1 million from the already awarded State Infill and Infrastructure Grant funding to be allocated for METRO’s transit station improvements and to execute funding documents including agreements, amendments, and related documents in a form to be approved by City Attorney, on behalf of the City.

13. Living Wage Rate Annual Prescription for Fiscal Year 2025 (FN) Resolution No. NS-30,276 was adopted upwardly indexing the prescribed minimum living wage rate by 2.5%, the amount which corresponds to San Francisco-Oakland-Hayward Area Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers, for the period ending October 31, 2023, to become effective July 1, 2024; and rescinding Resolution No. NS-30,111.

6.8 January 23, 2024 CITY COUNCIL MINUTES 6709
Consent Agenda (continued)

14. Application and Project Management Support for Information Technology Systems (IT)
Motion carried to:
 Approve a professional services agreement and scope of work with 3Nineteen, LLC for application and project management support of critical information technology systems. The City Manager is hereby authorized and directed to execute a contract in a form approved by the City Attorney.

The Information Technology Director is hereby authorized to execute change orders within the approved project budget; and
 Authorize the Information Technology Director to renew for an additional two years under identical contractual terms and conditions at the end of the first contract term.

15. Fiscal Year 2024 California Department of Justice, Office of Attorney General, Tobacco Program Grant Award (PD)
Motion carried to:
 Adopt Resolution No. NS-30,277 authorizing the acceptance of the California Department of Justice, Office of Attorney General, Tobacco Program Grant pursuant to the California Healthcare, Research, and Prevention Tobacco Tax Act of 2016, and authorizing and directing the City Manager to execute the contract and agreements associated with acceptance of this grant, and
 Adopt Resolution No. NS-30,278 amending the FY 2024 budget in the amount of $256,568 for the FY 2024 Tobacco Program Grant.

16. Digester Gas Piping Rehabilitation Project (m409659) – Approval of Plans and Specifications, and Authorization to Award (PW)
Motion carried to approve the plan and specifications for the Digester Gas Piping Rehabilitation Project (m409659) and authorize the City Manager to award the construction contract to MBS Engineering, Inc. in the amount of $116,270.00 in a form acceptable to the City Attorney and authorize the Director of Public Works to execute change orders within the approved project budget.

6.9 January 23, 2024 CITY COUNCIL MINUTES 6710
Consent Agenda (continued)

17. Murray Street Bridge Seismic Retrofit and Barrier Replacement (c409321) – Reject All Bids (PW)
Motion carried to:
 Reject all bids for the Murray Street Bridge Seismic Retrofit and Barrier Replacement Project (c409321), and
 Authorize staff to re-advertise for bids and award the contract. The City Manager is hereby authorized and directed to execute the contract as authorized by Resolution No. NS-27,563. The Director of Public Works is authorized to execute change orders within the approved project budget.

18. Anadromous Salmonid Habitat Conservation Plan – Adoption of a Final Mitigated Negative Declaration and a Mitigation Monitoring and Reporting Program (WT) Resolution No. NS-30,279 was adopted adopting the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the Anadromous Salmonid Habitat Conservation Plan.

19. Purchase of Real Property Necessary for Newell Creek Pipeline ReplacementFelton to Graham Hill Water Treatment Plant Project: Multiple Properties, Assessor’s Parcel Numbers 066-211-09, 066-211-10, 066-212-04 Owned by Wood VMS Family Limited Partnership and DK Felton Management, LLC (WT) Motion carried to:
 Adopt Resolution No. NS-30,280 authorizing and directing the City Manager or his designee to execute a purchase sale agreement between the City of Santa Cruz and David Wood for a permanent easement on APN 066-211-09 located in Felton, CA near Graham Hill Road and Zayante Road for the Newell Creek Pipeline Replacement-Felton to Graham Hill Water Treatment Plant Project;
 Adopt Resolution No. NS-30,281 authorizing and directing the City Manager or his designee to execute a purchase sale agreement between the City of Santa Cruz and David Wood for a permanent easement on APN 066-211-10 located in Felton, CA near Graham Hill Road and Zayante Road for the Newell Creek Pipeline Replacement-Felton to Graham Hill Water Treatment Plant Project; and

6.10 January 23, 2024 CITY COUNCIL MINUTES 6711
Consent Agenda (continued)

19. Purchase of Real Property Necessary for Newell Creek Pipeline ReplacementFelton to Graham Hill Water Treatment Plant Project: Multiple Properties, Assessor’s Parcel Numbers 066-211-09, 066-211-10, 066-212-04 Owned by Wood VMS Family Limited Partnership and DK Felton Management, LLC (WT) (continued)
 Adopt Resolution No. NS-30,282 authorizing and directing the City Manager or his designee to execute a purchase sale agreement between the City of Santa Cruz and David Wood for a permanent easement on APN 066-212-04 located in Felton, CA near Graham Hill Road and Zayante Road for the Newell Creek Pipeline Replacement-Felton to Graham Hill Water Treatment Plant Project.

20. Felton Diversion Pipeline Emergency Repair Project (e702301) – Notice of Completion (WT)
Motion carried to accept the work of Anderson Pacific Engineering Construction, Inc. (Santa Clara, CA) as complete per the Agreement, authorize the filing of a Notice of Completion for the Felton Diversion Pipeline Emergency Repair Project (e702301), and authorize the Water Director to sign the Notice of Completion as the Owner’s Authorized Agent.

End Consent Agenda
Consent Public Hearings
Mayor Keeley opened the public comment period. The following person spoke:

Kersten Paulsen spoke regarding item 24.

Mayor Keeley closed the public comment period.

MOTION: Vice Mayor Golder moved, seconded by Councilmember Brown, to approve the Consent Public Hearing Agenda.

ACTION: The motion carried with the following vote.

AYES: Councilmembers Newsome, Brown, Brunner, Kalantari-Johnson; Vice Mayor Golder (with the exception of item 22); Mayor Keeley.

NOES: Vice Mayor Golder (item 22).

ABSENT: Councilmember Watkins.

DISQUALIFIED: None.

6.11 January 23, 2024 CITY COUNCIL MINUTES 6712
Consent Public Hearings (continued)

21. 2nd Reading and Final Adoption of Ordinance No. 2024-01 Implementing the CalPERS Contract Amendment (HR)
Motion carried to adopt Ordinance No. 2024-01 implementing the CalPERS contract amendment.

22. 2nd Reading and Final Adoption of Ordinance No. 2024-02 Amending Chapter

5.11 – Delivery Driver Tipping at Section 5.11.030 - Exceptions (CA) Motion carried to adopt Ordinance 2024-02 amending Chapter 5.11 – Delivery Driver Tipping at Section 5.11.020 “Tipping Option Requirement” and 5.11.030 “Exceptions” pertaining to delivery driver tipping.

23. Municipal Code Amendments Relating to Objective Design Standards and Permit Processing Responding to Modifications Requested by the California Coastal Commission (PL)
Motion carried to:
 Adopt Resolution No. NS-30,283 acknowledging receipt of the resolution of certification from the California Coastal Commission, including the suggested modifications, and
 Introduce for publication Ordinance No. 2024-03 amending various parts Chapter 24.04 of the Santa Cruz Municipal Code related to permit processing in response to action by the California Coastal Commission.

6.12 January 23, 2024 CITY COUNCIL MINUTES 6713
Consent Public Hearings (continued)

24. A23-0001: Downtown Plan Amendments and Local Coastal Program Implementation Plan Amendments Responding to Modifications Requested by the California Coastal Commission on Previously Adopted Downtown Plan Amendments Related to Removing Public Hearing Requirements for Day Care and Supportive Housing, Consistent with State Law; Expanding Hotel, Residential, and Recreational Use Allowances; Revising Additional Height Criteria; Adding Language to Encourage Activated Roof Top Amenities; and Amending Landscape Requirements to Allow More Flexibility with Landscaping and Tree Selection (PL)
Motion carried to adopt Resolution No. NS-30,284:
 Acknowledging receipt of the resolution of certification from the California Coastal Commission, including the suggested modifications,  Amending the Downtown Plan and Local Coastal Program Implementation Plan to match the minor changes related to contributions to the Affordable Housing Trust Fund in response to action by the California Coastal Commission, and
 Directing the Director of Planning and Community Development to submit the accepted changes to the Coastal Commission.

25. Extension of Urgency Ordinance Relating to Accessory Dwelling Units (ADUs), Junior ADUs, and Associated Changes to Permitting Required by State Law (PL) Motion carried to:
 Adopt urgency Ordinance No. 2024-04 to extend the term of the previously adopted urgency ordinance for a term of twelve months in accordance with the allowances in State Law, and
 Direct staff to proceed with developing a regular ordinance that addresses the same state code changes.

6.13 January 23, 2024 CITY COUNCIL MINUTES 6714
Public Hearing

26. Tree Appeal 339 Walnut Avenue (PR)
City Attorney T. Condotti introduced the item and responded to Council questions.

Urban Forester L. Keedy gave a presentation and responded to Council questions.

Appellant Keelan Franzen and Structural Engineer Dave Bolger spoke.

Property Owner/Applicant Mary Barter spoke.

Mayor Keeley opened the public comment period. The following people spoke.

Unidentified person
Shalom Dreampeace Compost
Annika
Unidentified person
Laura Tate
Jacob Pollock
Joseph Schultz
Garrett
Andrea
Council took a break at 3:03 p.m. and returned at 3:09 p.m.

Public Comment (continued):

Emily Love
Veronica Elsea
Connel Wilson
Mayor Keeley closed the public comment period.

6.14 January 23, 2024 CITY COUNCIL MINUTES 6715
Public Hearing (continued)

26. Tree Appeal 339 Walnut Avenue (PR) (continued)
MOTION: Councilmember Newsome moved, seconded by Vice Mayor Golder, to:
 Adopt Resolution No. NS-30,285 to deny the appeal and uphold the Parks and Recreation Commission’s approval of tree removal permit application TR23-0089 submitted by Santa Cruz Property Management to remove one coast redwood tree located at 339 Walnut Avenue;
 In addition to the planting of three required mitigation trees, direct staff to plant an additional six trees in the City by the end of 2024 and, if necessary, make the budget adjustments to do so. The appellant may work with the Parks and Recreation Department Director and Urban Forester to help choose the six additional mitigation trees; and
 Direct staff to bring forward a budget item providing an additional full-time Assistant Urban Forester in the Parks and Recreation Department during FY 2025 budget hearings for Council consideration.

Superintendent of Parks T. Beck responded to Council questions.

FRIENDLY AMENDMENT: Mayor Keeley requested to amend the motion language as follows:
 Direct staff to bring forward a proposed budget item providing an additional full-time Assistant Urban Forester in the Parks and Recreation Department during FY 2024/2025 budget hearings for Council consideration.

Councilmember Newsome and Vice Mayor Golder accepted.

ACTION: The motion carried with the following vote.

AYES: Councilmembers Newsome, Watkins, Brunner, KalantariJohnson; Vice Mayor Golder; Mayor Keeley.

NOES: Councilmember Brown.

ABSENT: None.

DISQUALIFIED: None.

Council took a break at 3:35 p.m. and returned at 3:50 p.m.

6.15 January 23, 2024 CITY COUNCIL MINUTES 6716
General Business

27. Communitywide Climate Action Plan 2030 – Year 1 Progress Report Update (CM) Sustainability and Resiliency Officer T. Wise-West gave a presentation and responded to Council questions.

Transportation Planner C. Gallogly responded to Council questions.

Director of Planning and Community Development L. Butler responded to Council questions.

Mayor Keeley opened the public comment period. The following people spoke.

Ayo Banjo
Garrett
Cosmo
Mayor Keeley closed the public comment period.

MOTION: Councilmember Watkins moved, seconded by Councilmember Newsome, to accept the progress report update for the first year of the City’s Communitywide Climate Action Plan 2030.

ACTION: The motion carried unanimously with the following vote.

AYES: Councilmembers Newsome, Brown, Watkins, Brunner,
Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

6.16 January 23, 2024 CITY COUNCIL MINUTES 6717
General Business (continued)

28. 2023 Health in All Policies Progress Update and 2024 Health in All Policies Committee Workplan (CN)
Sustainability and Resiliency Officer T. Wise-West gave a presentation.

Councilmembers Kalantari-Johnson, Brunner, and Watkins spoke.

Mayor Keeley opened the public comment period. The following people spoke.

Maria Cadenas
Reggie Meisler
Mayor Keeley closed the public comment period.

MOTION: Councilmember Watkins moved, seconded by Councilmember Kalantari-Johnson, to:
 Accept the 2023 Health in All Policies (HiAP) progress update;  Adopt the 2024 HiAP Committee workplan and targets for increasing diversity in City committees and commissions;
 Direct staff to prepare a commissioner/committee member compensation policy and process and provide an update to HiAP Committee;  Direct staff to include the HiAP Committee recommended budget in FY 2025 budget proposals and provide an update to the HiAP Committee on integrating HiAP into budget decision making for FY 2025 prior to budget hearings; and
 Transfer work on a gas-powered leaf blower ordinance from the ad hoc committee that, to date, has worked to explore an ordinance, to the HiAP Committee, which will work with staff on developing the ordinance and conducting associated outreach.

ACTION: The motion carried unanimously with the following vote.

AYES: Councilmembers Newsome, Brown, Watkins, Brunner,
Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

6.17 January 23, 2024 CITY COUNCIL MINUTES 6718
General Business (continued)

29. Economic Development Strategy Update: Downtown and Eastside/Midtown District Activation and Direction (CN/ED)
Councilmembers Watkins and Kalantari-Johnson spoke.

Director of Economic Development and Housing B. Lipscomb and Economic Development Manager R. Unitt gave a presentation and responded to Council questions.

Mayor Keeley opened the public comment period. The following people spoke.

Unidentified person
Judi Grunstra
Sonia McMoran
Unidentified person
Mayor Keeley closed the public comment period.

MOTION: Councilmember Watkins moved, seconded by Councilmember Newsome, to:
1) Accept the Economic Development Strategy Update regarding downtown and Eastside/Midtown actions and direct staff to move forward on the following additional recommended action areas to further activate the two districts during the current fiscal year:
a) Placemaking and activation;
b) Assessment of remaining empty storefronts and the development of potential incentives for property owners;
c) Planning for future use of the existing library space including a permanent home for the downtown Farmers’ Market;
d) Integration of new downtown housing projects into the downtown business, retail and shopping environment;
e) Pursue establishment of an Eastside/Midtown Business or PropertyBased Improvement District; f) Amend the Economic Development Strategy to include these additional strategies and actions.
2) Return to Council with an update on progress during the current fiscal year.

6.18 January 23, 2024 CITY COUNCIL MINUTES 6719
General Business (continued)

29. Economic Development Strategy Update: Downtown and Eastside/Midtown District Activation and Direction (CN/ED) (continued)
FRIENDLY AMENDMENT: Vice Mayor Golder requested to amend the motion language as follows:
1) Accept the Economic Development Strategy Update regarding downtown and Eastside/Midtown and Westside actions and direct staff to move forward on the following additional recommended action areas to further activate the three districts during the current fiscal year:
a) Placemaking and activation;
b) Assessment of remaining empty storefronts and the development of potential incentives for property owners;
c) Planning for future use of the existing library space including a permanent home for the downtown Farmers’ Market;
d) Integration of new downtown housing projects into the downtown business, retail and shopping environment;
e) Pursue establishment of an Eastside/Midtown and Westside Business or Property-Based Improvement Districts; and
f) Amend the Economic Development Strategy to include these additional strategies and actions.
2) Return to Council with an update on progress during the current fiscal year.

Councilmembers Watkins and Newsome accepted.

ACTION: The motion carried unanimously with the following vote.

AYES: Councilmembers Newsome, Brown, Watkins, Brunner,
Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

6.19 January 23, 2024 CITY COUNCIL MINUTES 6720
General Business (continued)

30. Military Equipment Purchase Request and Policy Update per Assembly Bill 481 (PD)
Chief of Police B. Escalante introduced the item and responded to Council questions.

Police Sergeants J. Trog and B. Burruel gave a presentation and responded to Council questions.

Principal Management Analyst C. Brothers responded to Council questions.

Mayor Keeley opened the public comment period. The following people spoke.

Megan Goltz
Liz Fitzgerald
Unintelligible name
Unidentified person
Irene O’Connell
Ani
James Ewing Whitman
Unidentified person
Stacey Garcia
Victor
Unidentified person
Isabel
Douglas Fino
Mayor Keeley closed the public comment period.

6.20 January 23, 2024 CITY COUNCIL MINUTES 6721
General Business (continued)

30. Military Equipment Purchase Request and Policy Update per Assembly Bill 481 (PD) (continued)
MOTION: Vice Mayor Golder moved, seconded by Councilmember Kalantari-Johnson, to:
 Introduce for publication Ordinance No. 2024-05 amending City of Santa Cruz Municipal Code (“SCMC”) Chapter 9.90 “AB 481 Military Equipment Use,” adopting an amended Military Equipment Use Policy (Policy) and incorporating the acquisition of unmanned aerial systems (UAS), and  Should the Council adopt the amended Policy and upon ordinance adoption:
a) Adopt a resolution amending the FY 2024 budget in the amount of $170,942 from the Police Asset Seizure 214 Fund, and
b) Approve a five-year purchase with Axon, Inc. for a drone program, with Year 1 totaling $114,844, and authorize the City Manager to execute a contract in a form approved by the City Attorney.

FRIENDLY AMENDMENT: Councilmember Brown requested to add the following to Policy 607, Section 607.4, of the SCPD Policy Manual:
 Coordinating with the department’s military equipment coordinator to provide an annual report summarizing the department’s use of the UAS consistent with section 7072(a) of the Government Code and Policy 705 (Military Equipment). The report shall include whether and how often data acquired through the use of the UAS was shared with outside entities and the names of those entities, as well as a breakdown of where the surveillance technology was deployed geographically in the relevant year.

Vice Mayor Golder accepted.

ACTION: The motion carried unanimously with the following vote.

AYES: Councilmembers Newsome, Brown, Watkins, Brunner,
Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

Council took a break at 7:12 p.m. and returned at 7:28 p.m.

6.21 January 23, 2024 CITY COUNCIL MINUTES 6722
Advisory Body Appointments
Mayor Keeley opened the public comment period. The following people spoke:

Rebecca Acosta
Lola Quiroga
Bodie Shargel
Zennon Ulyate-Crow
Elizabeth Madrigal
Ryan Meckel
Keith Diggs
Mayor Keeley closed the public comment period.

31. Arts Commission (CC)
Councilmember Brunner nominated Linda Cover and Rebeca Escobedo Guzman.

By consensus Linda Cover and Rebecca Escobedo Guzman were appointed to the Arts Commission with terms ending on January 31, 2025.

32. County Library Advisory Commission (CC)
Councilmember Kalantari-Johnson nominated Rena Dubin and Vivian Rogers.

By consensus Rena Dubin and Vivian Rogers were appointed to the County Library Advisory Commission with terms ending on January 31, 2028.

33. Downtown Commission (CC)
Mayor Keeley nominated Joe Ferrara.

Vice Mayor Golder nominated Rebecca Acosta.

By consensus Joe Ferrara was appointed to the Downtown Commission with a term ending on January 31, 2027, and Rebecca Acosta was appointed to the Downtown Commission with a term ending on January 31, 2025.

6.22 January 23, 2024 CITY COUNCIL MINUTES 6723
Advisory Body Appointments (continued)

34. Historic Preservation Commission (CC)
Vice Mayor Golder nominated William Schultz.

Mayor Keeley nominated Sean Wilson.

By consensus, William Schultz and Sean Wilson were appointed to the Historic Preservation Commission, both with terms ending on January 31, 2027.

35. Parks and Recreation Commission (CC)
Vice Mayor Golder nominated Jorge Leonardo Cruz.

By consensus Jorge Leonardo Cruz was appointed to the Parks and Recreation Commission with a term ending on January 31, 2027.

36. Planning Commission (CC)
Councilmember Newsome nominated Rachel Dann.

Mayor Keeley nominated Matthew Thompson.

Councilmember Brunner nominated Rafa Sonnenfeld.

Voting for Rafa Sonnenfeld: Councilmember Brunner.

Voting for Matthew Thompson: Councilmembers Newsome, Brown, Watkins, Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.

Rachel Dann was appointed with a term ending on January 31, 2027, and Matthew Thompson was appointed with a term ending on January 31, 2025.

37. Sister Cities Committee (CC)
Councilmember Watkins nominated Carola Barton and Andrea Riordan.

By consensus Carola Barton and Andrea Riordan were appointed to the Sister Cities Committee with terms ending on January 31, 2028.

6.23 January 23, 2024 CITY COUNCIL MINUTES 6724
Advisory Body Appointments (continued)

38. Transportation and Public Works Commission (CC)
Vice Mayor Golder nominated Scott Harriman.

Councilmember Newsome nominated Ryan Meckel.

Councilmember Brown nominated Candace Brown and Lola Quiroga.

Councilmember Brunner nominated Ron Goodman.

Vice Mayor Golder nominated Detlef Adam.

Voting for Detlef Adam: Councilmembers Watkins, Kalantari-Johnson; Vice Mayor Golder.

Voting for Candace Brown: None.

Voting for Ron Goodman: Councilmembers Newsome, Brown, Watkins, Brunner, Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.

Voting for Lola Quiroga: Councilmembers Newsome, Brown, Brunner; Mayor Keeley.

Scott Harriman was appointed with a term ending on January 31, 2027, Ryan Meckel was appointed with a term ending on January 31, 2027, and Ron Goodman and Lola Quiroga were appointed with terms ending January 31, 2025.

39. Water Commission (CC)
Vice Mayor Golder nominated Julianne Rhodes.

Councilmember Newsome nominated David Green Baskin.

By consensus Julianne Rhodes was appointed with a term ending on January 31, 2027, and David Green Baskin was appointed with a term ending on January 31, 2025.

6.24 January 23, 2024 CITY COUNCIL MINUTES 6725
General Business

40. Impact Report on the Effect of the Proposed Housing for People Initiative (Measure M) (PL/ED)
Director of Planning and Community Development L. Butler, Director of Economic Development and Housing B. Lipscomb, and Kathy Head, President of Keyser Marston Associates, Inc., gave a presentation and responded to Council questions.

Principal Planner M. VanHua responded to Council questions.

Mayor Keeley opened the public comment period. The following people spoke.

Zennon Ulyate-Crow
Eric Cromer
Elizabeth Madrigal
Rafa Sonnenfeld
Lola Quiroga
Ryan Meckel
Unidentified person
Mike Polhamus
Mayor Keeley closed the public comment period.

MOTION: Vice Mayor Golder moved, seconded by Councilmember Newsome, to accept the impact report on the effect of the proposed Housing for People initiative (Measure M) and, take a formal position to oppose the measure.

ACTION: The motion carried with the following vote.

AYES: Councilmembers Newsome, Watkins, Brunner, KalantariJohnson; Vice Mayor Golder; Mayor Keeley.

NOES: Councilmember Brown.

ABSENT: None.

DISQUALIFIED: None.

Adjournment – Vice Mayor Golder moved, seconded by Councilmember Watkins, to adjourn. By consensus City Council adjourned at 9:50 p.m.

6.25 January 23, 2024 CITY COUNCIL MINUTES 6726
Respectfully Submitted:

Julia Wood, Deputy City Clerk Administrator
Attest:

Bonnie Bush, City Clerk Administrator
Approved:

Fred Keeley, Mayor

6.26 City Council

AGENDA REPORT
DATE: 01/24/2024
AGENDA OF: 02/13/2024
DEPARTMENT: City Manager/Public Works/Water
SUBJECT: Integrated Regional Water Management – Memorandum of Agreement Renewal, Local Project Sponsorship Agreement Authorization, DecisionSupport Tool Approval of Professional Services Agreement (CM/PW/WT) RECOMMENDATION: Motion to authorize the City Manager to:
1) Execute the Memorandum of Agreement for the Santa Cruz Integrated Regional Water Management Program and Complementary Efforts in a form approved by the City Attorney; 2) Execute a Local Project Sponsor Agreement between the Regional Water Management Foundation and the City of Santa Cruz, in a form approved by the City Attorney; accept the funds; and execute all standard agreements for such funds and any amendments thereto and any other documents necessary to secure the Proposition 1 Integrated Regional Water Management Round 2 Implementation Grant Agreement funds for the Projects Entitled Project 3: DecisionSupport Tool – Understanding Climate Influenced River Flooding and Project 4: Recreational Vehicle Sewage Dump Station in a form approved by the City Attorney; and 3) Execute an agreement in a form to be approved by the City Attorney with Environmental Science Associates (ESA) for consulting services for Project 3: Decision-Support Tool and to authorize the City Manager to execute future contract amendments within the approved project budget.

BACKGROUND: The Santa Cruz Integrated Regional Water Management (IRWM) Program was developed in response to California’s 2002 IRWM planning initiative to promote an informed, locally driven, and consensus-based approach to water resources management. IRWM Regions are self-organized; the Central Coast Region, now referred to as the Regional Water Management Group (RWMG), consists of 12 local agencies including the City of Santa Cruz.

The Regional Water Management Foundation (RWMF) was created in 2007 by the Community Foundation of Santa Cruz County in cooperation with local agencies to manage the Santa Cruz IRWM Plan (IRWMP). The RWMG operates under a Memorandum of Agreement (MOA); previous MOAs include 2006, 2011, and 2016. Updates to the MOA occur on an approximate 5- year cycle. The Memorandum of Agreement for Santa Cruz Integrated Regional Water Management Program and Complementary Efforts is attached.

The RWMF takes the lead in pursuing funding for high-priority water resource projects in Santa Cruz County on behalf of the RWMG. The City of Santa Cruz has applied for and received

7.1 several grants through the IRWM Program. For example the Water Department received $611,000 for the Evaluation of Subsurface Intake for Desalination Facility (2008 – 2011) and $203,343 for the Tait Wells Replacement Project (2015 – 2017).

In November 2023, the RWMF executed a grant agreement with the State of California that includes two Public Works projects as described above. As grant administrator, the RWMF will implement Local Project Sponsor sub-grantee agreements with each lead project proponent including the City of Santa Cruz. The Local Project Sponsor Agreement is attached.

Finally, to better understand climate-influenced riverine flooding in the lower SLR, the City will conduct technical analyses of climate change vulnerabilities on watershed hydrology and river hydraulics to develop a grant-funded Decision-Support Tool that utilizes an adaptation pathways approach. Adaptation pathways utilize triggers and thresholds to proactively signal when infrastructure and programming should be implemented to mitigate impacts. The first of several Professional Services Agreements to support this work is attached.

This agenda item authorizes the execution of an updated MOA, a Local Project Sponsor agreement between the City and RWMF, and the first of several professional services agreements between the City and subject matter experts for one of the grant-funded projects, Project 3: Decision-Support Tool.

DISCUSSION:

Memorandum of Agreement
Staff seeks approval to reaffirm the City’s commitment to the Central Coast's IRWM work that is led though the RWMF via renewal of the MOA with the RWMF. Participating in the IRWMP process allows the City to remain eligible for grant funding through IRWM funding solicitations and demonstrates a commitment toward regional collaboration that may also better position the agencies for other regional grants.

The 2024 MOA is updated to reflect activities since 2016 and the new statewide programs including the Sustainable Groundwater Management Act and Groundwater Sustainability Agencies. It is further updated to include references to forthcoming state programs to advance and incentivize regional planning via new watershed resilience and climate resiliency programs outlined in the State Water Plan Update 2023. The City’s current fiscal year budget for RWMF coordination services described in the MOA includes $15,000 from the Water Department and $5,000 from the Public Works Department.

Local Project Sponsor Agreement
Public Works received Proposition 1 Round 2 IRWM funding for two projects: development of a Decision-Support Tool for understanding climate influenced flooding in the lower San Lorenzo River (grant award $179,375; local cost share $25,625) and a recreational vehicle sewage dump station (grant award $85,000; local cost share $85,000). Both projects are scheduled to be completed in 2025. As grant administrator, the RWMF will implement Local Project Sponsor sub-grantee agreements with each lead project proponent including the City of Santa Cruz.

Professional Services Agreement Environmental Science Associates

7.2 To better understand climate-influenced riverine flooding in the lower SLR, the City will conduct technical analyses of climate change vulnerabilities on watershed hydrology and river hydraulics to develop a Decision-Support Tool that utilizes an adaptation pathways approach.

Adaptation pathways utilize triggers and thresholds to proactively signal when infrastructure and programming should be implemented to mitigate impacts.

Based on (1) their long history of flood control modeling, mapping and analysis of the San Lorenzo River and (2) their work in scoping the grant project, the City will sole source a professional services agreement to Environmental Science Associates (ESA). ESA will utilize sediment delivery modeling, lagoon hydrologic modeling and flood hydraulics analysis of the San Lorenzo River conducted for the City over 25 years. For this project, ESA, in collaboration with Dr. Shawn Chartrand of Simon Fraser University, will compile and review existing hydrologic, hydraulic and sediment data, develop hydroclimate scenarios, characterize extreme stream flows, conduct two-dimensional hydrodynamic modeling, develop floodplain mapping, prepare technical documentation, and perform project management and coordination for the project.

FISCAL IMPACT: The estimated total cost for the Decision-Support Tool is $200,842 with $179,375 from the IRWM grant and the remainder from Public Works general funds. The estimated total cost for the recreational vehicle sewage dump station is $170,000 with $85,000 from the IRWM grant and the remainder from Public Works wastewater/stormwater funds.

ESA’s fee for consulting services is $141,192 and will be funded through the Proposition 1 Integrated Regional Water Management Round 2 Implementation Grant accepted as part of this agenda item.

Prepared By:

Heidi Luckenbach
Water Director
Tiffany Wise-West, P.E.

Sustainability and Resiliency
Officer
Submitted By:

Heidi Luckenbach
Water Director
Nathan Nguyen
Public Works Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. MEMORANDUM OF AGREEMENT FOR SANTA CRUZ INTEGRATED REGIONAL WATER MANAGEMENT PROGRAM AND COMPLEMENTARY EFFORTS.PDF

2. LOCAL PROJECT SPONSOR AGREEMENT FOR PROPOSITION 1 IRWM ROUND 2 IMPLEMENTATION GRANT.PDF

3. PROFESSIONAL SERVICE AGREEMENT.PDF

7.3 Memorandum of Agreement 2024 Page 1

MEMORANDUM OF AGREEMENT

FOR THE SANTA CRUZ INTEGRATED REGIONAL WATER

MANAGEMENT PROGRAM AND COMPLEMENTARY EFFORTS

1. PURPOSE
The purpose of this interagency cooperative memorandum of agreement (MOA) is to reaffirm the joint efforts of the participating organizations in participating in the Integrated Regional Water Management (IRWM) Program that supports coordination, collaboration and communication in addressing the region’s water resources issues. The signatories hereby commit to the common and specific purpose of maintaining and implementing the Santa Cruz IRWM Plan (IRWMP) and efforts consistent with the IRWM Program. This MOA updates and continues the efforts initiated under the initial MOA completed in 2006 and subsequent updates completed in 2010/2011, and 2016.

2. IRWMP GOALS AND OBJECTIVES
The Santa Cruz IRWMP goals are intended to be a summary of the desired objectives that the agencies in the region are collectively working to achieve:
• Provide safe, reliable, and affordable water supply to meet current and projected demand without causing undesirable environmental impacts. • Maintain and improve surface and groundwater quality to protect beneficial uses. • Improve the condition of upland riparian and aquatic ecosystems to support the native species, watershed functions, and water needs.
• Reduce flood hazards and manage stormwater runoff through policies and projects that enhance natural hydrologic function and protect communities.

More specific objectives for the Santa Cruz IRWMP are listed below, according to the four functional areas.

Water Supply
• Ensure reliable and sustainable water supply through strategies that diversify the supply portfolio, develop alternative/supplemental sources, protect and enhance surface water and groundwater, protect against seawater intrusion, maximize efficient delivery, and address the projected impacts of climate change. • Reduce water demand as technically and economically feasible, particularly in relation to the cost of additional sources.

Water Quality
• Reduce the sources of harmful pollutants (e.g., sediment, bacteria, nitrate, persistent organics and other toxic constituents) and their impacts on aquatic resources.

Watershed Resources
• Improve and protect watershed ecosystems to support healthy watershed function. • Increase the habitat quality and quantity of critical aquatic ecosystems (i.e., streams,

7.4 Memorandum of Agreement 2024 Page 2
tidal wetlands, and freshwater wetlands).

Flood/Stormwater
• Implement integrated flood management strategies that reduce hazards and impacts from floods and provide diverse benefits (e.g., improve stormwater quality, protect ecosystems, increase groundwater recharge).

3. DEFINITIONS

3.1. Integrated Regional Water Management Plan (IRWMP). The California Water Code defines IRWMP as "a comprehensive plan for a defined geographic area, the specific development, content, and adoption of which shall satisfy requirements developed pursuant to this part. At a minimum, an Integrated Regional Water Management Plan describes the major water-related objectives and conflicts within a region, considers a broad variety of resource management strategies, identifies the appropriate mix of water demand and supply management alternatives, water quality protection, and environmental stewardship actions to provide long-term, reliable, and high-quality water supply and protect the environment, and identifies disadvantaged communities in the region and takes the water-related needs of those communities into consideration." (CWC §10530 et seq.)

3.2. IRWM Planning Region also known as the IRWM Region. The geographic area in which consolidated planning and coordination efforts including stakeholders, agencies and projects are conducted. Regions are self-forming and organizing. Regions are to be geographically contiguous and determined with regard to shared water management issues, stakeholders, and water-related conflicts. In March 2009, the California Department of Water Resources' (DWR) established a Region Acceptance Process to evaluate and approve an IRWM region. Approval of an IRWM region by DWR is required before a region can submit an application for IRWM grant funds. There are 48 IRWM regions statewide, six IRWM regions in the Central Coast Funding Area. In September 2009, DWR formally approved the Santa Cruz IRWM Region. The Santa Cruz region encompasses all of the watersheds of Santa Cruz County, excluding the Pajaro watershed, but including the Watsonville Sloughs watershed.

The Pajaro watershed is within the adjacent Pajaro IRWM Region, which also addresses flood and water supply issues in the Watsonville Sloughs watershed.

3.3. Central Coast Funding Area (CCFA). The Central Coast Funding Area (CCFA) is one of 12 funding areas statewide allocated a specific amount of funding to support IRWM activities (Water Code section 79744 (a)). The CCFA includes six IRWM Regions and incorporates lands in portions of the counties of Santa Clara (south of Morgan Hill), San Mateo (small portions), Santa Cruz, San Benito, Monterey, Kern (small portions), San Luis Obispo, Santa Barbara, Ventura (northern portion).

3.4. Regional Water Management Group (RWMG). State guidelines define the RWMG as a group of three or more agencies, at least two ofwhich have a statutory authority over water supply or water management, as well as those persons who may be necessary for the development and implementation of an IRWM Plan, pursuant to the requirements in CWC

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§10540and §10541.

For the Santa Cruz IRWM program, the RWMG consists of the local Agencies with statutory authority over water management and related resources, and the Regional Water Management Foundation (RWMF) which serves as the administrative and coordinating entity.

RWMG members that are signatories to the 2016 MOA includes:
• Central Water District
• City of Capitola
• City of Santa Cruz
• City of Scotts Valley
• City of Watsonville
• County of Santa Cruz
• Santa Cruz County Sanitation District
• Davenport County Sanitation District
• Resource Conservation District of Santa Cruz County
• San Lorenzo Valley Water District
• Scotts Valley Water District
• Soquel Creek Water District

3.5. Steering Committee. The Santa Cruz IRWM Steering Committee is an active, decision-making entity of the RWMG that is designed to comprise a broad representation of the RWMG to effectively make decisions on behalf of the group in a timely manner. The Steering Committee meets on a regular basis to oversee IRWM implementation and coordinate efforts as needed. The Steering Committee currently consists of the County Water Resources Program Manager, the Executive Director of the Resource Conservation District, and the General Manager/Director of a water supply agency. These individuals continue to serve as the Steering Committee unless a majority vote of the RWMG (based on one vote per agency) replaces all or some of the Steering Committee members or a replacement is necessary due to an individual's resignation. The Steering Committee provides direction and expertise in the four functional planning areas – water supply, water quality, watershed resources, and flood/stormwater management. The RWMF Program Director participates as a non-voting member of the Steering Committee and provides staff support. All Steering Committee decisions with material financial implications are ratified by the RWMG.

The Steering Committee provides information and consults with the RWMG, and performs the following functions on behalf of the RWMG
• guides IRWM Plan development and implementation;
• acts as a liaison to the Regional Water Management Foundation (see below) and all stakeholders, including state agencies, elected officials, non-governmental organizations, and the public;
• coordinates funding proposals;
• promotes project integration of multi-benefit projects; • ensures stakeholder participation; and,

7.6 Memorandum of Agreement 2024 Page 4
• tends to administrative matters concerning IRWM efforts.

3.6. Regional Water Management Foundation (RWMF). The RWMF was established in 2007 to provide organizational support for the implementation of the Santa Cruz IRWMP. The RWMF is a subsidiary of the Community Foundation Santa Cruz County (CFSCC). The RWMF is a separate 501(c)(3) tax-exempt nonprofit organization. It has its own Board of Directors and staff, with an office located at the CFSCC. The RWMF Board, includes directors appointed by the Community Foundation and three directors representing public agencies; currently, the Public Agency director seats are filled by the Steering Committee members. The primary objectives of the RWMF are to (1) protect communities in Santa Cruz County from water shortages and floods; (2) improve water supply reliability in Santa Cruz County (3) protect and improve water quality and the natural environment in Santa Cruz County; and,; and (4) improve preparedness, adaption, mitigation, and resiliency to climate change related impacts to water resources. The RWMF aims to support regional planning and implementation efforts via the IRWM program and complementary efforts such as the Sustainable Groundwater Management Act Groundwater Sustainability Plans, Watershed Resilience and Climate Resiliency programs.

The RWMF served as the grantee on prior IRWM grants awarded to the Santa Cruz region, including: a 2007 IRWM Implementation grant, a 2011 IRWM Planning grant; a 2013 Disadvantaged Communities Engagement Pilot Project; a 2016 IRWM Implementation grant; a 2018 IRWM Disadvantaged Communities Involvement Grant; and IRWM Implementation grants awarded in 2020 and 2023. The RWMF provided management and administration of these grants and served as the central hub for reporting, invoicing, and inter-agency coordination. The RWMF also assists with the preparation of grant applications and provides administrative services to agencies’ awarded grants that are complementary to IRWM efforts.

The RWMF also provides administrative and planning support to two Groundwater Sustainability Agencies that formed in response to the Sustainable Groundwater Management Act. The RWMF has provided administrative and planning support to the Santa Cruz MidCounty Groundwater Agency since 2016. The RWMF has supported the Santa Margarita Groundwater Agency with grants since 2018 and with administrative and planning support since 2022.

3.7. IRWM Stakeholders. Stakeholder group includes a diverse range of resource agencies, municipalities, local districts, non-governmental organizations, interest groups, and residents with an interest in water resources planning and management. Efforts to engage, inform and provide opportunities for stakeholders to actively participate in IRWM have occurred from the program’s inception. The stakeholder engagement seeks to ensure that diverse interests and perspectives are considered in establishing the region’s water management goals, objectives, strategies and priorities. Local agencies, organizations, and stakeholders have opportunities for input on the IRWM Plan development and specific projects through meetings and workshops and the broader community informed through boards, advisory groups, meetings and events.

7.7 Memorandum of Agreement 2024 Page 5

3.8. IRWM Projects. The California Water Code (§10537) establishes that IRWM projectsand programs are those that accomplishanyofthe followingobjectives; a) Reduce water demand through agricultural and urban water use efficiency. b) Increase water supplies for any beneficial use through the use of any of the following, or other, means:

1. Groundwater storage and conjunctive water management

2. Desalination

3. Precipitation enhancement

4. Water recycling

5. Regional and local surface storage

6. Water use efficiency

7. Stormwater management
c) Improve operational efficiency and water supply reliability, including conveyance facilities, system reoperation, and water transfers.
d) Improve water quality, including drinking water treatment and distribution, groundwater and aquifer remediation, matching water quality to water use, wastewater treatment, water pollution prevention, and management of urban and agricultural runoff. e) Improve resource stewardship, including agricultural lands stewardship, ecosystem restoration, flood plain management; recharge area protection, urban land use management, groundwater management, water-dependent recreation, fishery restoration, including fish passage improvement, and watershed management. f) Improve flood management through structural and non-structural means, or by any other means.

4. SUMMARY OF SANTA CRUZ IRWM EFFORTS TO DATE
2005 – A Preliminary IRWMP was developed and a Proposition 50 IRWM grant proposal submitted to the DWR and the State Water Resources Control Board (SWRCB), with the CFSCC serving as applicant at the behest of the Partner Agencies. 2006 – The Partner Agencies (presently referred to as the Regional Water Management Group) entered into a Memorandum of Agreement (MOA) to establish an institutional framework to implement the IRWMP under the context of a single, regional grant agreement.

The MOA describes the Partner Agencies' and CFSCC's responsibilities to fulfill the terms of the Prop 50 IRWM Implementation grant agreement. Signatories to the 2006 MOA include:
o Soquel Creek Water District
o Scotts Valley Water District
o County of Santa Cruz
o Resource Conservation District of Santa Cruz County

7.8 Memorandum of Agreement 2024 Page 6
o Santa Cruz County Sanitation District
o Davenport County Sanitation District
o City of Santa Cruz
o City of Watsonville
o Watsonville Wetlands Watch
o Community Foundation of Santa Cruz County
2007 – The SWRCB awarded a $12.5 million grant to the CFSCC to fund the implementation of high priority IRWM projects in the region. In 2007, the CFSCC created a subsidiary organization, the RWMF, to support the IRWMP efforts and the Prop 50 administrative duties. 2008 – The RWMF and SWRCB executed a Proposition 50 IRWM Implementation Grant that awarded $12.5m for local agencies to implement 15 high priority components addressing water supply, water quality, and watershed/habitat condition. Many of components feature multi-benefit projects with on-the ground improvements in multiple locations. In total, over 50 projects were completed at more than 80 sites in the County from 2008 - 2013. The total cost of the implementation, including local match contribution, was over $30m. The RWMF served as grantee and provided the administration and coordination of this grant. 2009 – The Santa Cruz Region successfully completed the state’s IRWM Regional Acceptance Process, through which the region was formally evaluated and approved by the Dept. of Water Resources. Approval is a requirement to be eligible for IRWM grant funding.

This effort was coordinated by the Santa Cruz IRWM Steering Committee with the RWMF and consultant support.
2010 – The Santa Cruz Region conducted an open solicitation for partners, affiliates, and stakeholders to submit planning and implementation projects for inclusion in the IRWMP. Also, local agencies initiated the renewal and update of the 2006 IRWM Memorandum of Agreement. Central Water District joined as new signatory. 2011 – The RWMF and DWR executed a Proposition 84 IRWM Planning Grant that awarded approximately $1m for IRWM planning efforts in the region. The grant funded an update of the 2005 IRWM Plan and key technical studies to inform water resources management. The technical studies included: Aromas and Purisima Groundwater Basin Management; Santa Margarita Groundwater Basin Model Update; Conjunctive Use and Water Transfers (Phase II); and Watsonville Sloughs hydrology study.
2013 – The Santa Cruz Region was one of seven regions selected statewide to participate in a pilot project to identify methods and strategies to enhance economically disadvantaged community participation in the IRWM planning process. The RWMF served as grantee and supported this work that targeted efforts in Watsonville and Davenport. 2014 – A comprehensive update of the Santa Cruz IRWM Plan was completed. The Plan was reviewed and approved by the Department of Water Resources. Each of the Santa Cruz RWMG agencies formally approved the Plan through a publicly noticed process.

7.9 Memorandum of Agreement 2024 Page 7
2015 – The City of Capitola and the City of Scotts Valley formally join the RWMG. With these additions, all municipalities within the IRWM region are members of the RWMG and have approved the 2014 IRWM Plan.
2016 – The DWR recommended the Santa Cruz IRWM region receive a $1.2m grant to implement three projects to enhance water supply reliability, improve drinking water quality, and provide recycled water. The participating local agencies approved updates to and renewal of the IRWM Memorandum of Agreement.
2016 – Establishment of the Santa Cruz Mid-County Groundwater Agency (MGA), a Groundwater Sustainability Agency (GSA) under the Sustainable Groundwater Management Act (SGMA). The agency has four member agencies: Soquel Creek Water District, City of Santa Cruz, Central Water District and the County of Santa Cruz. The MGA is governed by an 11-member Board of Directors comprising of two representatives from each member agency and three private well owner representatives tasked with overseeing the groundwater management activities of the Santa Cruz Mid-County Groundwater Basin. 2017 – Establishment of the Santa Margarita Groundwater Agency (SMGWA), a GSA that oversees the groundwater management activities of the Santa Margarita Groundwater Basin. The agency has three member agencies: Scotts Valley Water District, San Lorenzo Valley Water District, and County of Santa Cruz and is governed by an 11-member Board of Directors comprising of two representatives from each member agency, one representative from the City of Scotts Valley, one from the City of Santa Cruz, one from Mount Hermon Association, and two well owner representatives.
2018 – The Santa Cruz Region received approximately $472,000 to assess the water-related needs of economically disadvantaged communities, to conduct involvement activities, and to advance projects to address needs. The six IRWM regions in the Central Coast Funding Area (Santa Cruz to Santa Barbara) coordinated efforts through DWR’s statewide disadvantaged communities involvement program. Work was conducted from 2018 to 2022. 2019 – The RWMF led the coordination and completion of an addendum to the 2014 IRWM Plan to meet the state’s updated Plan standards. The addendum included a climate change vulnerability assessment and additional requirements added by the state after 2014. The addendum was approved by DWR, thus maintaining eligibility to apply for IRWM grants. 2020 – The DWR awarded the Santa Cruz IRWM region $2.3m to implement multiple projects.

The Resource Conservation District (RCD) will implement improvements at approximately 15 sites to reduce sediment loads in the San Lorenzo River watershed and other impaired waterbodies. Davenport County Sanitation District will improve water supply storage infrastructure. The RCD and partner organizations will implement watershed restoration in the Watsonville Sloughs to improve habitat and reduce flood hazard. 2023 – The RWMF successfully applied for the final round of Proposition 1 funding and was

7.10 Memorandum of Agreement 2024 Page 8
awarded a $2.5m IRWM grant to fund six projects to improve water supply reliability, wastewater infrastructure improvements, water quality, and climate change resiliency.

Implementing agencies include: San Lorenzo Valley Water District, County of Santa Cruz, cities of Santa Cruz and Watsonville, and Watsonville Wetlands Watch. Projects will be implemented from 2023 to 2028.

5. PROPOSITION 1 FUNDING FOR IRWM AND CENTRAL COAST FUNDING AREA

COOPERATIVE AGREEMENT
Proposition 1 (Water Code §79744) authorized $510 million for projects that are included in an adopted IRWM plan that is consistent with Water Code §10530, et seq., and respond to climate change and contribute to regional water security. Funding is administered by the DWR which awards funding through competitive grants for IRWM planning and projects. $510 million is allocated across 12 hydrologic region-based Funding Areas; $43 million is allocated to the Central Coast Funding Area.

Since 2005, the six CCFA IRWM regions have worked to improve the IRWM planning process, to coordinate planning across region boundaries, and to facilitate the distribution of funding for IRWM projects by DWR. In May 2016, the CCFA IRWM regions entered into a Memorandum of Agreement (CCFA MOA) (incorporated herein by this reference). The primary intent of the CCFA MOA is to share Proposition 1 IRWM funding allocated to the CCFA among the six IRWM regions in a fair and equitable manner. The CCFA MOA will enhance the potential to improve inter-regional cooperation and efficiency. The CCFA MOA is also intended to reduce the need for the regions to compete against each other for grant funds, which creates unnecessary economic inefficiencies in implementing each region’s IRWM Plan. Each region will retain autonomous control over how funds are allocated within their respective IRWM regions. Each IRWM region will independently determine and prioritize projects to be funded within its IRWM region consistent with the IRWM program guidelines.

The CCFA is allocated $43 million through Proposition 1 for the IRWM program. This funding allocation includes the following breakdown:

IRWM Central Coast Funding Area allocation $ 43,000,000 State Administration Fee1 - 7% of Funding Area Total $ 3,010,000 DAC Specific Funding Allocations - 20% of Funding Area Total DAC involvement funding2 (10%) $ 4,300,000
DAC project implementation2 (10%) $ 4,300,000
Implementation and Planning Grants $ 31,390,000
1 State of California administrative fees (7%) consisting of 5% for DWR program administration and 2% for statewide bond costs.
2 Per Proposition 1, 20% of the Funding Area allocation is to be award for projects and planning efforts that directly benefit economically Disadvantaged Communities (DAC) with 10% directed towards Involvement and 10% towards project implementation.

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Per the CCFA MOA, the formula for sharing funds is based on the following: one-half (50%) of funds are equally split among the six IRWM regions; one-quarter (25%) of funds are split based on population percentage of each region based on 2009-2013 American Census Data; and one-quarter (25%) of funds are split based on the percentage of area in square miles of each region. As mandated under Proposition 1 IRWM guidelines, not less than $8.6M, or 20%, shall be allocated to projects that directly benefit Disadvantaged Communities (DAC); these funds may be awarded on a competitive or non-competitive basis. The CCFA regions will coordinate on grant funding requests by each of the regions to ensure that the sum of the total grant requests from the Funding Area does not exceed the amount allocated to the Funding Area. The division of funding shall be consistent terms of the CCFA MOA.

Santa Cruz Pajaro
Greater
Monterey
Monterey
Peninsula
San Luis
Obispo
Santa
Barbara Total CCFA
Description ALLOCATIONS
DAC support $1,109,810 $1,340,107 $1,775,034 $931,966 $1,712,669 $1,730,414 $8,600,000 Implementation $4,050,805 $4,891,390 $6,478,875 $3,401,677 $6,251,243 $6,316,010 $31,390,000 Subtotal $5,160,615 $6,231,497 $8,253,910 $4,333,643 $7,963,912 $8,046,424 $39,990,000 State Admin Fee $3,010,000
Total $43,000,000

6. IRWM COLLABORATION
In addressing the region's water resources challenges, the participating agencies are committed to:

6.1 Establish and foster relationships with regional, state, and local governments, individuals, and other interested organizations to develop and implement management practices to preserve and protect Santa Cruz County water resources. a. Undertake cooperative research and resource management initiatives that are regional in scope and disseminate information resulting from these activities. b. Produce and share relevant informational materials among the RWMG. c. Recommend to the respective governing boards actions necessary to successfully develop and implement the IRWMP.

6.2 All parties to this agreement wish to join in a common effort to develop and implement an IRWMP which shall include, but not be limited to establishing water quality, water supply, watershed stewardship, and stormwater and flood management objectives for the Santa Cruz IRWM Region.

6.3 As with IRWM efforts to date, the RWMG will contribute the personnel and financial resources necessary to develop and implement the IRWMP proportional to their potential benefit.

7.12 Memorandum of Agreement 2024 Page 10

6.4 As new partners elect to participate, they shall approve and execute this Memorandum of Agreement which establishes the understanding among participating agencies with regard to the purposes, development, and implementation of the Santa Cruz lRWMP.

6.5 In the event of future IRWM-related grant awards, sub-grantee agreements, referred to as Local Project Sponsor agreements, are anticipated to be developed that establish the specific roles and responsibilities of the grantee and sub-grantee based upon the terms and conditions of the grant award.

7. IRWMP AMENDMENTS, FORMAL UPDATES, AND PROJECT LIST UPDATES The Santa Cruz IRWMP is intended to be a dynamic document that changes over time in response to changing conditions and priorities in order to remain current in identifying strategies to address the region's water resource needs. The updates serve to keep the document up to date with the state's IRWM Plan Standards including amendments, formal updates, and updates to the IRWMP Project List.

7.1 Amendments. Amendments to the IRWMP may include informal changes that reflect minor process or organizational changes that occur relatively frequently and do not necessitate a decision by the governing bodies of the individual RWMG entities.

Amendments may also include new content in response to state legislation (e.g., SB985, AB1249) to ensure the state’s Plan Standards for state funding eligibility. The IRWM Steering Committee will provide guidance and coordination of amendments. A RWMG member agency may present an amendment for consideration to the Steering Committee.

The RWMG will be informed of and provided opportunity for input on proposed interim amendments. The Steering Committee will ratify amendments by consensus. An amendment to the IRWMP was completed in 2019 to maintain consistency with the state’s IRWM Plan Standards. As necessary, amendments will be incorporated into the IRWMP during the subsequent formal update.

7.2 Formal updates. Formal updates will reflect any significant changes to the IRWMP including processes, organizational structure and governance, water management conditions, or goals and objectives. The Steering Committee will provide a leadership role in guiding and coordinating the formal updates, as necessary, to ensure an inclusive and transparent decision-making process. Formal updates will include stakeholder outreach, including disadvantaged communities, to ensure that interested entities have an opportunity to participate.

7.3 Project list updates. The IRWMP includes a list of projects, submitted by proponents, such as a RWMG member agencies or stakeholder organizations, which were evaluated and included based upon each project's anticipated contribution towards meeting the goals and objectives of the IRWMP. The list of projects will be periodically updated as projects are completed and as new priorities arise. The Steering Committee is tasked with coordinating updates. The Steering Committee conducts a review of the project list no less frequently than every five years, and as needed, initiate and coordinate a publicly

7.13 Memorandum of Agreement 2024 Page 11
announced solicitation for projects. Projects may also be submitted for addition to the list during interim periods. Projects submitted will be vetted for eligibility by the Steering Committee; eligible projects will be added to the list of IRWMP Projects and incorporated into future IRWMP updates.

8. COMPLEMENTARY PROGRAMS

8.1 SUSTAINABLE GROUNDWATER MANAGEMENT ACT (SGMA)
The State of California enacted the Sustainable Groundwater Management Act (SGMA), effective January 1, 2015, as the first legislation in the state’s history to mandate comprehensive sustainable groundwater resources management. In response, two Groundwater Sustainability Agencies (GSAs) formed in the Santa Cruz IRWM Region.

The Santa Cruz Mid-County Groundwater Agency (MGA) formed in 2016 under SGMA to develop this Groundwater Sustainability Plan (GSP or Plan) for the Santa Cruz MidCounty Groundwater Basin. The MGA is Joint Powers Agreement (JPA), with four member agencies: Central Water District, City of Santa Cruz, County of Santa Cruz, and Soquel Creek Water District. The Board of Directors includes two representatives from each member agency and three private well owner representatives.

The Santa Margarita Groundwater Agency (SMGWA) formed in 2017 under SGMA to develop the GSP for the Santa Margarita Groundwater Basin. The SMGWA is a JPA among the Scotts Valley Water District, the San Lorenzo Valley Water District, and the County of Santa Cruz. The SMGWA is governed by a Board of Directors comprising two representatives from each member agency, single representatives from the City of Scotts Valley, City of Santa Cruz, and Mount Hermon Association (MHA), and two private well owners.

The respective GSPs describe how both GSAs intend to manage groundwater in their respective Basins to achieve groundwater sustainability and meet the requirements of SGMA. Both Basin Plans provide the basis for ongoing management to both achieve sustainability in the State’s required 20-year planning horizon and to maintain sustainability over the 50-year implementation horizon. By following their GSPs, the MGA and SMGWA, and their cooperating agencies, and other local stakeholders will collaboratively manage the respective Basins to maintain a safe and reliable groundwater supply for all beneficial groundwater uses and users.

The RWMF has provided administrative and planning support to the MGA since 2016 and to the SMGWA on grant related support since 2018. In 2022, following a County issued Request for Qualifications, the RWMF was awarded a contract to provide administrative and planning services to both MGA and SMGWA from 2022 - 2025.

Many of goals and objectives in the IRWMP and the GSPs in both Basins are complementary and aligned. Funding awards in IRWM grants have supported planning and technical studies that have advanced the work of member agencies participating in both Basins. The same GSA member agencies are also participating in IRWM. There are

7.14 Memorandum of Agreement 2024 Page 12
potential mutual benefits and efficiencies to be gained in the cooperation and collaboration of the agencies participating in IRWM and SGMA.

8.2 WATERSHED RESILIENCE
California’s 2023 Water Plan Update (September 2023 draft) presents a statewide vision for Watershed Resilience to be achieved via partnerships between state agencies, local agencies, organizations and stakeholders. The Plan describes the need for climate resilience planning at the watershed scale and broadly outlines a new framework for the State’s efforts to promote local collaboration at regional scales to respond to climate change risks. The Plan introduces a new Watershed Resilience program to be administered by DWR. The forthcoming program will build on existing collaborative relationships, planning, and investments to improve regional climate resilience and invest in natural and built backbone infrastructure.

The Santa Cruz Regional Water Management Group is well positioned to build upon existing collaborative programs, such as the IRWM Program and Sustainable Groundwater Management Program, to pursue funding to support multi-sector collaborations and solutions at the watershed- and regional-scale.

8.3 CLIMATE RESILIENCY
Climate change is increasingly impacting the state’s and the region’s water resources and watersheds, as evidenced by greater weather extremes, changes in rainfall and runoff patterns, sea level rise, wildfire intensity, and impacts related to water resources and watersheds. Multiple state and federal programs provide guidance, technical support, planning and assessment tools, and/or funding to public agencies and organizations to improve local adaptation and resiliency to climate change impacts.

Municipalities (County and cities), agencies and organizations in Santa Cruz County have conducted extensive planning to respond to climate change. Multiple local plans document the vulnerability, impacts, adaptations, mitigations and/or responses (e.g., municipal Climate Action Plans; County Climate Action and Adaptation Plan (CAAP); IRWM Plan; Groundwater Sustainability Plans; other).

As noted by DWR, as the impacts of climate change intensify, local water managers will need better tools to identify the adaptation strategies for their watersheds and diverse hydrology to make more-informed infrastructure investment decisions. Two steps identified by DWR to fulfill key the goals of the Governor's Water Resilience Portfolio are:

1. Develop data, tools, and guidance for watershed-based climate vulnerability and adaptation analyses.

2. Explore the formation of a California-based network of climate scientists and water management practitioners.

Regional coordination and collaboration may provide opportunities to pursue funding and other resources for studies/projects to generate better climate change information for decision-making or develop systems that are more resilient to climate change and natural

7.15 Memorandum of Agreement 2024 Page 13
disasters.

8.4 STORM WATER RESOURCE PLAN (SWRP)
The SWRP is a comprehensive document outlining regional stormwater project priorities, as well as regional stormwater permit compliance. A SWRP was completed in December 2016. Development of the SWRP was led by the County of Santa Cruz Environmental Health with contributions by staff and representatives from the City of Santa Cruz, the City of Scotts Valley, the City of Watsonville, the City of Capitola, Ecology Action, the Resource Conservation District of Santa Cruz County, and the University of California Santa Cruz. The SWRP is incorporated into the IRWM Plan as an appendix. In June 2017, the State Water Resources Control Board issued its letter of concurrence that the SWRP met the requirements of the California Water Code and the SWRP Guidelines. IRWM and SWRP efforts are aligned. The coordination of these programs offers the potential benefit of identifying and pursing funding opportunities to support planning and implementation.

9. MUTUAL UNDERSTANDINGS

9.1 Purpose of the MOA. This MOA pertains to the joint efforts of the agencies participating in the IRWM Program to increase coordination, collaboration and communication in addressing the region's water resources issues. This MOA updates and continues the efforts initiated under the prior MOA executed in 2006 and renewed in 2010/2011 and 2016.

9.2 Subject matter scope of the IRWMP. The IRWMP includes, but may not necessarily be limited to, water supply, water quality, wastewater, recycled water, water conservation, stormwater and flood management, watershed planning and habitat protection and restoration, and climate change resiliency related to water and watersheds.

9.3 Decision-making. Consensus is sought in decision-making. The Steering Committee provides a lead role in the decision-making process and coordinating input from the participating agencies. As needed, the Steering Committee ratifies decisions by majority vote. Amendments resulting in material financial implications are ratified by the RWMG.

Votes are recorded as one vote per signatory agency.

9.4 Approval of the IRWMP. IRWMP adoption occurs by adopting a resolution by each RWMG agency’s governing body. The 2014 IRWMP was adopted by all the RWMG members.

9.5 Relation to local planning efforts. The Santa Cruz IRWMP is intended to be complementary to the participating agencies’ individual plans and programs and does not supersede such plans and programs.

9.6 Termination. An agency may terminate their participation in the IRWMP effort by providing 90 calendar days written notice to the Regional Water Management Foundation.

7.16 Memorandum of Agreement 2024 Page 14

9.7 Personnel and financial resources. It is expected that agencies contribute the personnel and financial resources necessary to develop, implement and update the IRWMP and pursue complementary efforts.

9.8 Reports and communications. The Steering Committee reports regularly on IRWMP progress to the participating agencies and stakeholders. The SantaCruzlRWMP.org website is used for disseminating news, reports and updates to the participating agencies and the public.

9.9 Futureawards. In the event of future grant awards, it is expected that agreement(s) are entered into by the applicable participating agencies that establish the terms and conditions applicable to the specific grant award.

9.10 Term. This updated MOA commences as of January 1, 2024 and continues until terminated by action of a majority of the participating agencies or is superseded by a future MOA. This agreement is evaluated and reviewed no later than five years after its implementation, at which time, recommendations for improvements and modifications are considered by all parties. Any amendment or modification to this agreement must be in writing, agreed upon by a majority of all signatories, executed by the duly authorized representatives of the parties hereto, and incorporated into this agreement by reference.

10. SIGNATORIES TO THE MEMORANDUM OF AGREEMENT
We, the undersigned representatives of our respective agencies, acknowledge the above as our understanding of how the Santa Cruz Integrated Regional Water Management Plan and complementary efforts will be developed and implemented.

Each party has full power and authority to enter into and perform this MOA and the person signing this MOA on behalf of each party is authorized and empowered to enter into this MOA.

Each party further acknowledges that it has read this MOA, understands it and agrees to it.

7.17 Memorandum of Agreement 2024 Page 15

MEMORANDUM OF AGREEMENT

FOR THE SANTA CRUZ INTEGRATED REGIONAL WATER MANAGEMENT Central Water District
Signature:

Ralph Bracamonte, General Manager
Date:

City of Capitola
Signature:

Jamie Goldstein, City Manager
Date:

City of Santa Cruz
Signature:

Matt Huffaker, City Manager
Date:

7.18 Memorandum of Agreement 2024 Page 16

MEMORANDUM OF AGREEMENT

FOR THE SANTA CRUZ INTEGRATED REGIONAL WATER MANAGEMENT City of Scotts Valley
Signature:

Mali LaGoe, City Manager
Date:

City of Watsonville
Signature:

René Mendez, City Manager
Date:

County of Santa Cruz
Signature:

Carlos Palacios, County Administrative Officer
Date:

7.19 Memorandum of Agreement 2024 Page 17

MEMORANDUM OF AGREEMENT

FOR THE SANTA CRUZ INTEGRATED REGIONAL WATER MANAGEMENT County of Santa Cruz Sanitation
District
Signature:

Matt Machado, Director of Public Works
Date:

Davenport County Sanitation District
(County of Santa Cruz)
Signature:

Matt Machado, Director of Public Works
Date:

Resource Conservation District of
Santa Cruz County
Signature:

Lisa Lurie, Executive Director
Date:

7.20 Memorandum of Agreement 2024 Page 18

MEMORANDUM OF AGREEMENT

FOR THE SANTA CRUZ INTEGRATED REGIONAL WATER MANAGEMENT San Lorenzo Valley Water District
Signature:

Brian Frus, Interim General Manager
Date:

Scotts Valley Water District
Signature:

David McNair, General Manager
Date:

Soquel Creek Water District
Signature:

Ron Duncan, General Manager
Date:

7.21 Memorandum of Agreement 2024 Page 19

MEMORANDUM OF AGREEMENT

FOR THE SANTA CRUZ INTEGRATED REGIONAL WATER MANAGEMENT Santa Cruz Mid-County
Groundwater Agency
Signature:

Board Chair
Date:

Santa Margarita Groundwater
Agency
Signature:

Board Chair
Date:

Regional Water Management
Foundation
Signature:

John Ricker, Board President
Date:

7.22

Local Project Sponsor Agreement Between
Regional Water Management Foundation (referred to herein as “RWMF” or “Grantee”) and City of Santa Cruz (referred to herein as “Local Project Sponsor”) for the Proposition 1 Round 2 Integrated Regional Water Management (IRWM) Implementation Grant for the Projects Entitled:

Project 3: Decision-Support Tool - Understanding Climate Influenced River Flooding Project 4: Recreational Vehicle Sewage Dump Station
Recitals
A. Regional Water Management Foundation (referred to herein as Grantee), a subsidiary of Community Foundation Santa Cruz County, is to enter an agreement with the Department of Water Resources of the State of California (referred to herein as “DWR” or “State”) to receive grant funding from the Water Quality, Supply and Infrastructure Improvement Act of 2014 (Proposition 1) pursuant to that certain Integrated Regional Water Management Round 2 Implementation Grant Agreement (4600015400) (referred to herein as “Grant Agreement”). The State funding will assist in financing the projects identified in the Grant Agreement which are included in and implemented in an adopted Integrated Regional Water Management Plan (IRWM Plan), pursuant to Chapter 7. Regional Water Security, Climate, and Drought Preparedness (Wat. Code, § 79740 et seq.). The Grant Agreement (Attachment A), and any subsequent amendments thereto, are incorporated herein by reference.

B. The term Local Project Sponsor refers to the proponent of the Project specific Task(s) in the IRWM Grant Agreement. Local Project Sponsor is one of multiple local project sponsors intended to receive grant funding from Grantee pursuant to said Grant Agreement for work to be completed by Local Project Sponsor as set forth in said Grant Agreement. Local Project Sponsors shall be assigned in accordance with the participating agencies identified in the Grant Agreement. All the work to be completed by Local Project Sponsor is referred to in this Agreement as “Project” and is defined as a group of activities as set forth in the Grant Agreement Exhibit A (Work Plan).

C. The parties acknowledge that Grantee will administer the distribution of grant funds to each local project sponsor pursuant to the Grant Agreement. The Local Project Sponsor agrees to act on behalf of Grantee for the purposes of its individual Project management, oversight, compliance, and operations and maintenance. Local Project Sponsor is responsible for all other aspects of its Project in a manner to ensure Grantee’s compliance with the Grant Agreement. Local Project Sponsor is solely responsible for design, construction, and operation and maintenance of projects within Exhibit A, Work Plan. Review or approval of plans, specifications, bid documents, or other construction documents by the Grantee and the State is solely for the purpose of proper administration of funds by the Grantee or the State and shall not be deemed to relieve or restrict responsibilities of the Local Project Sponsor under this Agreement.

D. The term of this Grant Agreement begins on May 6, 2023, and extends through final payment to the Grantee plus three (3) years unless otherwise terminated or amended as provided in the Grant Agreement. All work shall be completed by December 31, 2027, in accordance with the Schedule as set forth in Exhibit C and no funds may be requested after March 31, 2028, unless otherwise amended as provided in the Grant Agreement.

7.23 Local Project Sponsor Agreement
IRWM Proposition 1 Round 2 Implementation Grant #4600015400

E. The parties desire to set forth the terms and conditions under which Local Project Sponsor is to receive grant funds from Grantee and pursuant to which Local Project Sponsor shall reimburse Grantee for Local Project Sponsor’s share of the Administrative Fees.

Agreement

1. The above recitals are incorporated herein by reference.

2. Local Project Sponsor agrees to:
a) Faithfully and expeditiously perform or cause to be performed all work associated with the following project(s) as described in the Grant Agreement Exhibit A (Work Plan) in accordance with Exhibit B (Budget) and Exhibit C (Schedule): Project 3: DecisionSupport Tool - Understanding Climate Influenced River Flooding. b) Accept and agree to comply with all terms, provisions, conditions, and written commitments of this Grant Agreement, including all incorporated documents, and to fulfill all assurances, declarations, representations, and statements made by Grantee in the application, documents, amendments, and communications filed in support of this Grant Agreement.
c) Comply with all applicable California laws and regulations. d) Implement its specific project(s) in accordance with applicable provisions of the law. e) Fulfill its obligations under the Grant Agreement and be responsible for the performance of its specific project(s).
f) Obtain all permits, licenses, and approvals required for performing any work under this Grant agreement, including those necessary to perform design, construction, or operation and maintenance of the Project.
g) Be solely responsible for design, construction, and operation and maintenance of projects within the work plan. Review or approval of plans, specifications, bid documents, or other construction documents by State and Grantee is solely for the purpose of proper administration of funds by State and shall not be deemed to relieve or restrict responsibilities of Local Project Sponsor under this Agreement. h) Be solely responsible for all work and for persons or entities engaged in work performed pursuant to this Agreement, including, but not limited to, contractors, subcontractors, suppliers, and providers of services. The Local Project Sponsor shall be responsible for any and all disputes arising out of its contracts for work on the Project, including but not limited to payment disputes with contractors and subcontractors. The State nor Grantee will not mediate disputes between the Local Project Sponsor and any other entity concerning responsibility for performance of work.

3. Local Project Sponsor shall perform the work and provide the documentation required of Grantee or Local Project Sponsors pertinent to Local Project Sponsor’s Project in a timely manner as set forth, without limitation, in the Grant Agreement. Notwithstanding the foregoing, documents or information required to be submitted to the State shall be submitted to Grantee for submittal by Grantee to the appropriate party designated in the Grant Agreement.

4. Local Project Sponsor acknowledges that Grant Agreement Item 5 (BASIC CONDITIONS) establishes the State shall have no obligation to disburse money for project(s) under this

7.24 Local Project Sponsor Agreement
IRWM Proposition 1 Round 2 Implementation Grant #4600015400

Grant Agreement until Grantee, and as applicable the Local Project Sponsor, has satisfied all the applicable conditions specified in Item 5.

5. Subject to receipt of grant funds from the Department of Water Resources as a result of a particular request for disbursement of grant funds by Local Project Sponsor and subject to the other terms and conditions set forth herein, Grantee shall remit to Local Project Sponsor such disbursement it receives from Department of Water Resources as a result of such request, up to a total amount not to exceed the Local Project Sponsor’s Project(s) as specified in the Work Plan in the Grant Agreement and referenced in the table below.

Project Name Grant
Award
Required
Cost Share
Project 3. Decision-Support Tool - Understanding Climate Influenced River Flooding $179,375 $25,625
Project 4. Recreational Vehicle Sewage Dump Station $85,000 $85,000

6. In order to receive disbursement of grant funds, Local Project Sponsor shall submit to the Grantee, within 30 days past the end of the calendar quarter, quarterly invoices for eligible project costs as defined in the Grant Agreement Item 7 (ELIGIBLE PROJECT COST) in a form required by Grantee. Supporting documentation as described in the Grant Agreement Item 8 (METHOD OF PAYMENT) shall accompany each invoice. The documentation required by this paragraph shall be sent to:

Tim Carson, Program Director
Regional Water Management Foundation (RWMF)
c/o Community Foundation of Santa Cruz County
7807 Soquel Drive
Aptos, CA 95003
or such other address as Grantee may provide.

7. The Local Project Sponsor shall apply State funds only to Eligible Project Costs in accordance with applicable provisions of the law. Local Cost Share may include Eligible Project Costs directly related to Exhibit A incurred after January 1, 2015. Local Project Sponsor acknowledges that Eligible Project Costs related to its Project(s) are limited to those set forth in Item 7 of the Grant Agreement.

8. Notwithstanding any other provision of this Agreement, no disbursement shall be required to be made by Grantee at any time or in any manner which is in violation of, or in conflict with, federal or state laws, rules, or regulations, or which may require any rebates to the Federal Government, or any loss of tax-free status on state bonds, pursuant to any Federal statute or regulation.

9. Local Project Sponsor acknowledges the requirements and processes defined in the Grant Agreement Item 8 (Method of Payment) pertaining to reimbursement requests for costs incurred for work performed. If the Local Project Sponsor requests advanced payment, the required information must be provided as set forth in Grant Agreement Item 9 (Advanced Payment).

7.25 Local Project Sponsor Agreement
IRWM Proposition 1 Round 2 Implementation Grant #4600015400

10. Local Project Sponsor shall not be entitled to, and Grantee shall have no obligation to make any, disbursement of grant funds as set forth herein if Grantee does not receive grant funds from the Department of Water Resources in connection with Local Project Sponsor’s request for disbursement. Further, if Grantee is required to refund any disbursement made to Local Project Sponsor to the Department of Water Resources due to a violation of the Grant Agreement by Local Project Sponsor, Local Project Sponsor shall refund to Grantee such disbursement amount plus any interest or penalties required to be paid by Grantee to the Department of Water Resources, as well as for any expenses incurred by the Grantee (e.g., personnel time, postage) due in connection with the coordination of such refund.

11. Local Project Sponsor agrees to provide all required reports as specified in Grant Agreement Item 14 (Submission of Reports) and Exhibit F, according to a format and schedule as specified by the Grantee. This pertains to the quarterly Progress Report, Final Report, and Post-Performance Reports. The Local Project Sponsor agrees to prepare and submit Post-Performance Reports, if applicable to its project. Post-Performance Reports shall be submitted to State within ninety (90) calendar days after the first operational year of a project has elapsed. This record keeping and reporting process shall be repeated annually for a total of three (3) years after the completed project(s) begins operation.

The Local Project Sponsor shall provide annual written notification to the Grantee of the Post-Performance Report submittal.

12. The Grantee agrees to provide grant administrative services for the term specified in the Grant Agreement. In the event the term of the Grant Agreement is extended by the Grantee to accommodate the Local Project Sponsor, the Grantee shall be reimbursed for any additional administrative costs that are solely attributable to grant administration occurring beyond the end date of the initial term. Any such costs, beyond those reimbursable by the grant, shall be shared with the other remaining local project sponsors that have not completed their respective project-specific requirements and reporting. In the event a specific local project sponsor has completed its project-specific requirements and completed its final reporting and invoicing prior to the end date of the initial term, that specific local project sponsor would not be responsible for any administrative costs incurred as a result of extending the Grant Agreement beyond the end date of the initial term.

13. Local Project Sponsor acknowledges the provisions of Grant Agreement Exhibit D. Item D.36 (Retention) of the Grant Agreement and that disbursement of grant funds may be withheld by Grantee to satisfy the retention requirements set forth therein.

Notwithstanding any other provision of this Grant Agreement, State may, for each project, withhold ten percent (10.0%) of the funds requested by Grantee for reimbursement of Eligible Costs. Each project in this Grant Agreement will be eligible to release its respective retention when that project is completed and Grantee has met requirements of Grant Agreement Item 14 (Submission of Reports), except in the case of the last project to be completed under this Grant Agreement, in which case retention for such project will not be disbursed until the “Final Report” is submitted to and approved by State. State shall disburse retained funds to the Grantee.

14. Local Project Sponsor agrees to be bound, perform and abide by all of the provisions applicable to Grantee or any Local Project Sponsor set forth in the Grant Agreement as

7.26 Local Project Sponsor Agreement
IRWM Proposition 1 Round 2 Implementation Grant #4600015400

if Local Project Sponsor had signed the IRWM Agreement in the place and stead of Grantee, and with respect to Local Project Sponsor, Grantee shall have all rights of the Department of Water Resources, “State,” or “Division” conferred thereunder.

Local Project Sponsor agrees to indemnify, defend, and hold harmless the State of California, Grantee and their officers, directors, agents, employees and volunteers (each, an “Indemnified Person”) from and against any and all judgments, losses, claims, damages or liabilities, joint or several, to which any Indemnified Person may become subject which relate to or arise out of the Project or the Grant Agreement, including, but not limited to any claims or damages arising from planning, design, construction, maintenance and/or operation of levee rehabilitation measures for the Project; the negligence or wrongful acts of the Local Project Sponsor or its officers, directors, employees, contractors or subcontractors (each a “LPS Party”); a breach of this Agreement by a LPS Party; or a breach of the Grant Agreement by a LPS Party. Except as otherwise approved by Grantee.

15. Local Project Sponsor shall procure and maintain for the duration of the Project, and for 4 years thereafter, insurance against claims which may arise from or in connection with the performance of the work or services relating to the Grant or the Project by the Local Project Sponsor, its agents, representatives, employees, consultants, contractors or subcontractors. Coverage shall be at least as broad as:
a) Commercial General Liability (CGL) CGL insurance claims on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal liability with limits no less than $1,000,000 per occurrence. b) Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employers’ Liability insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease.
c) Professional Liability with limits no less than $1,000,000 per occurrence or claim, when applicable.
d) The State, and the Grantee, and their officers, officials, employees, agents and volunteers shall be covered as additional insureds on the CGL policy, by separate endorsement.
e) For any claims related to the Grant or the Project, the Local Project Sponsor’s insurance coverage shall be primary coverage as respects the Grantee, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the State or Grantee or their officers, officials, employees, agents or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.
f) The Local Project Sponsor hereby agrees to waive rights of subrogation which any insurer of Local Project Sponsor may acquire from Local Project Sponsor by virtue of the payment of any loss. Local Project Sponsor agrees to obtain an endorsement that may be necessary to affect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the State and Grantee for all work performed by the Local Project Sponsor, its employees, agents and subcontractors.
g) Local Project Sponsor shall require and verify that all contractors and subcontractors maintain insurance meeting all the requirements stated herein, and Local Project Sponsor shall ensure that the State and Grantee and their officers, officials,

7.27 Local Project Sponsor Agreement
IRWM Proposition 1 Round 2 Implementation Grant #4600015400

employees, agents and volunteers are additional insureds on insurance required from contractors or subcontractors by separate endorsement.

The Local Project Sponsor shall issue a Certificate of Insurance (a Memorandum of Understanding will not be accepted) with the following minimum requirements:
• Certificate(s) will show current policy number(s) and effective dates with minimum coverage to be approved by Grantee;
• The Certificate Holders will be:
i. Regional Water Management Foundation, 7807 Soquel Drive, Aptos, CA 95073
ii. The State of California, P.O. Box 942836, Sacramento, CA 94236-0001 Certificate will be signed by an authorized representative; • Endorsements to show:
i. 1. RWMF, its officers, officials, employees, and volunteers and ii. 2. The State, its officers, agents, and employees as additional insureds. • Waiver of Subrogation by separate endorsement.

Grantee reserves the right to modify these minimum requirements, based on the nature of the risk, prior experience, insurer, coverage, or other circumstances.

For any Public Works of Improvement Project in excess of $25,000, Local Project Sponsor shall require its contractors to provide, payment and performance bonds in a sum equal to 100% of the contract price. Bonds shall be on a form approved by Local Project Sponsor, duly executed by a responsible corporate surety, authorized to issue such bonds in the State of California and secured through an authorized agent with an office in California.

The Local Project Sponsor shall not authorize construction to begin until each contractor has furnished a payment and a performance bond in favor of the Local Project Sponsor (Pub. Contract Code, § 7103; Code Civ. Proc., § 995.311.)

16. In the event Local Project Sponsor violates any provision of this Agreement that, in Grantee’s judgment, could result in a violation of the Grant Agreement, Grantee may take any and all appropriate measures to attempt to prevent any such violation or to mitigate any damages Grantee would incur as a result thereof, including but not limited to performing any work required of Local Project Sponsor hereunder, and in such case, Local Project Sponsor shall be liable for any costs of Grantee incurred in connection with such measures.

17. To enable Grantee to confirm Local Project Sponsor’s compliance with this Agreement, upon request by Grantee, Local Project Sponsor shall provide Grantee with: (i) any requested documentation; and (ii) access to any work sites or other areas associated with Local Project Sponsor’s Project for the purpose of making observations or conducting any necessary tests or studies.

18. The State reserves the right to conduct an audit during the term of the grant and for a period of three years after final payment with respect to all matters connected with this Grant Agreement as specified in the Grant Agreement Exhibit D 5 (Audits). All records of

7.28 Local Project Sponsor Agreement
IRWM Proposition 1 Round 2 Implementation Grant #4600015400

Grantee, Local Project Sponsor, or its contractor or subcontractors shall be preserved for this purpose for at least three (3) years after project completion or final billing, whichever comes later; based upon the term of the Grant Agreement this estimated to be March 31, 2031. The Local Project Sponsor agrees to compensate the Grantee for any costs incurred in complying with this provision related to the Local Project Sponsor’s Project.

19. The parties may, pursuant to mutual agreement, expand the scope of work to be performed by Local Project Sponsor hereunder, but in any event modifications to the terms of this Agreement shall be valid only if made in writing and executed by Grantee and Local Project Sponsor.

20. Local Project Sponsor shall not assign, delegate or otherwise transfer any of its duties, obligations, rights or interest under this Agreement without prior written consent of Grantee, which consent may be given or withheld by Grantee in its reasonable discretion. Any attempted assignment or transfer without such consent shall be void.

21. Subject to the provisions of paragraph immediately below, all terms and conditions of this Agreement shall be binding upon, inure to the benefit of, and be enforceable by, Grantee and Local Project Sponsor and their respective legal representatives, successors and permitted assigns.

22. A waiver of any provision of this Agreement in any given instance shall not constitute a waiver of (i) such provision in future instances or (ii) any other provision of this Agreement.

23. This Agreement, together with the other agreement specifically referred to herein, constitutes the entire understanding of Grantee and Local Project Sponsor concerning the subject matter hereof and supersedes all prior and contemporaneous agreements, correspondence, representations or understandings between Grantee and Local Project Sponsor relating to the subject matter hereof, whether written or oral.

24. This Agreement may be executed in counterparts, each of which when taken together shall constitute the entire Agreement.

25. This Agreement shall be governed by and construed in accordance with the laws of the State of California. In the event any dispute arises between the parties to this agreement concerning the matters contained in this agreement, the parties agree to pursue mediation as a means to settle the dispute.

26. Whenever it is provided in this Agreement that Grantee or Local Project Sponsor shall give notice to the other, said notice shall be given by delivering a copy of said notice to the other party personally, or by mailing first class mail, postage prepaid, through the U.S.

Postal Service, or by a nationally-recognized overnight courier, a copy of said notice at the following addresses:

A. Address for Local Project Sponsor:

7.29 Local Project Sponsor Agreement
IRWM Proposition 1 Round 2 Implementation Grant #4600015400

City of Santa Cruz, Public Works
809 Center Street, Room 201
Santa Cruz, CA 95060
B. Address for Grantee:

Regional Water Management Foundation
c/o Community Foundation of Santa Cruz County
7807 Soquel Drive
Aptos, CA 95003
IN WITNESS WHEREOF Grantee and Local Project Sponsor have executed this Agreement the day and year first written below by their duly authorized representatives, having full authority to so act for and on behalf of the parties hereto.

Regional Water Management Foundation (Grantee)

By: ______________________________________ Date: ___________________ John Ricker
President
Approved as to Form: __________________________ Date: ___________________ Teresa Rein
Counsel
City of Santa Cruz (Local Project Sponsor)
By: ______________________________________ Date: ___________________ Matt Huffaker
City Manager
Approved as to Form: __________________________ Date: ___________________ Counsel

7.30

Attachment A

GRANT AGREEMENT BETWEEN THE STATE OF CALIFORNIA (DEPARTMENT OF WATER RESOURCES)

AND REGIONAL WATER MANAGEMENT FOUNDATION
AGREEMENT NUMBER 4600015400

7.31 GRANT AGREEMENT BETWEEN THE STATE OF CALIFORNIA
(DEPARTMENT OF WATER RESOURCES) AND

REGIONAL WATER MANAGEMENT FOUNDATION
AGREEMENT NUMBER 4600015400
PROPOSITION 1 ROUND 2 INTEGRATED REGIONAL WATER MANAGEMENT (IRWM)

IMPLEMENTATION GRANT
THIS GRANT AGREEMENT is entered into by and between the Department of Water Resources of the State of California, herein referred to as the "State" or “DWR,” and the Regional Water Management Foundation, a non-profit in the State of California, duly organized, existing, and acting pursuant to the laws thereof, herein referred to as the "Grantee," which parties do hereby agree as follows:
1) PURPOSE. The State shall provide funding from the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Proposition 1) to the Grantee to assist in financing the projects, which are included in and implemented in an adopted Integrated Regional Water Management Plan (IRWM Plan), pursuant to Chapter 7. Regional Water Security, Climate, and Drought Preparedness (Wat. Code, § 79740 et seq.). The provision of State funds pursuant to this Agreement shall be construed or interpreted to mean that the IRWM Plan, or any components of the IRWM Plan, implemented in accordance with the Work Plan as set forth in Exhibit A, has been adopted through the IRWM Plan Review Process, and is/are consistent with Water Code section 10530 et seq.
2) TERM OF GRANT AGREEMENT. The term of this Grant Agreement begins on May 6, 2023, through final payment plus three (3) years unless otherwise terminated or amended as provided in this Grant Agreement. However, all work shall be completed by December 31, 2027, in accordance with the Schedule as set forth in Exhibit C and no funds may be requested after March 31, 2028. 3) GRANT AMOUNT. The maximum amount payable by the State under this Grant Agreement shall not exceed $2,557,275.
4) GRANTEE COST SHARE. The Grantee is required to provide a Local Cost Share (non-state funds) as set forth in Exhibit B (Budget). Local Cost Share may include Eligible Project Costs directly related to Exhibit A incurred after January 1, 2015.
5) BASIC CONDITIONS. The State shall have no obligation to disburse money for the Project(s) under this Grant Agreement until the Grantee has satisfied the following conditions (if applicable):

A. The Grantee shall demonstrate compliance with all eligibility criteria as set forth on pages 9-11, inclusive, of the 2022 IRWM Grant Program Guidelines (2022 Guidelines).

B. For the term of this Agreement, the Grantee shall submit Quarterly Progress Reports which must accompany an invoice ($0 Invoices are acceptable) and all invoice backup documentation. The Quarterly Progress Report shall be submitted within 60 days following the end of the calendar quarter (i.e., reports due May 30, August 29, November 29, and March 1) and all other deliverables as required by Paragraph 14, “Submission of Reports” and Exhibit A, “Work Plan”.

C. Prior to the commencement of construction or implementation activities, if applicable, the Grantee shall submit the following to the State.
i. Final plans and specifications certified, signed and stamped by a California Registered Civil Engineer (or equivalent registered professional as appropriate) to certify compliance for each approved project as listed in Exhibit A of this Grant Agreement. ii. Work that is subject to the California Environmental Quality Act (CEQA) (including final land purchases) shall not proceed under this Grant Agreement until the following actions are performed:
a) The Grantee submits to the State all applicable permits, as indicated on the Environmental Information Form to the State,
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b) All documents that satisfy the CEQA process are received by the State, c) The State has completed its CEQA process as a Responsible Agency, and d) The Grantee receives written notification from the State of concurrence with the Lead Agency’s CEQA documents (s) and State’s notice of verification of permit submittal.

The State’s concurrence of Lead Agency’s CEQA documents is fully discretionary and shall constitute a condition precedent to any work (i.e., construction or implementation activities) for which it is required. Once CEQA documentation has been completed, the State will consider the environmental documents and decide whether to continue to fund the project, or to require changes, alterations, or other mitigation. Proceeding with work subject to CEQA prior to the State’s concurrence shall constitute a material breach of this Agreement. The Grantee or Local Project Sponsor (LPS) shall also demonstrate that it has complied with all applicable requirements of the National Environmental Policy Act (NEPA) by submitting copies of any environmental documents, including Environmental Impact Statements, Finding of No Significant Impact, mitigation monitoring programs, and environmental permits as may be required prior to beginning construction/ implementation. iii. A monitoring plan as required by Paragraph 16, “Monitoring Plan Requirements,” if applicable. 6) DISBURSEMENT OF FUNDS. The State will disburse to the Grantee the amount approved, subject to the availability of funds through normal State processes. Notwithstanding any other provision of this Grant Agreement, no disbursement shall be required at any time or in any manner which is in violation of, or in conflict with, federal or state laws, rules, or regulations, or which may require any rebates to the federal government, or any loss of tax-free status on state bonds, pursuant to any federal statute or regulation.

Any and all money disbursed to the Grantee under this Grant Agreement shall be deposited in a noninterest-bearing account and shall be used solely to pay Eligible Project Costs. 7) ELIGIBLE PROJECT COST. The Grantee shall apply State funds received only to Eligible Project Costs in accordance with applicable provisions of the law and Exhibit B, “Budget”. Eligible Project Costs include the reasonable costs of studies, engineering, design, land and easement acquisition and associated legal fees, preparation of environmental documentation, environmental mitigations, monitoring, and project construction. Reimbursable administrative expenses are the necessary costs incidental but directly related to the Project included in this Agreement. Costs incurred after May 5, 2023, may be eligible for reimbursement.

Costs that are not eligible for reimbursement include, but are not limited to, the following items:

A. Costs, other than those noted above, incurred prior to the award date of this Grant.

B. Costs for preparing and filing a grant application.

C. Operation and maintenance costs, including post construction performance and monitoring costs.

D. Purchase of equipment that is not an integral part of a project.

E. Establishing a reserve fund.

F. Purchase of water supply.

G. Replacement of existing funding sources (e.g., bridge loans).

H. Meals, food items, or refreshments.

I. Payment of any punitive regulatory agency requirement, federal or state taxes.

J. Purchase of land in excess of the minimum required acreage necessary to operate as an integral part of a project, as set forth and detailed by engineering and feasibility studies, or acquisition of land by eminent domain.

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K. Indirect Costs. “Indirect Costs” means those costs that are incurred for a common or joint purpose benefiting more than one cost objective and are not readily assignable to the funded project (i.e., costs that are not directly related to the funded project). Examples of Indirect Costs include, but are not limited to: central service costs; general administration of the Grantee or LPSs; non-project-specific accounting and personnel services performed within the Grantee’s or LPS’ organization; depreciation or use allowances on buildings and equipment; the costs of operating and maintaining non-projectspecific facilities; tuition and conference fees; forums, trainings, and seminars; and, generic overhead or markup. This prohibition applies to the Grantee, LPSs, and any subcontract or sub-agreement for work on the Project that will be reimbursed pursuant to this Agreement.

L. Mitigation for environmental impacts not resulting from implementation of the Project funded by this program.

M. Costs incurred as part of any necessary response and cleanup activities required under the Comprehensive Environmental Response, Compensation, and Liability Act; Resource Conservation and Recovery Act; Hazardous Substances Account Act; or other applicable law. 8) METHOD OF PAYMENT. After the disbursement requirements in Paragraph 5, “Basic Conditions” are met, the State will disburse the whole or portions of State funding to the Grantee, following receipt from the Grantee of an electronic invoice certified and transmitted via electronic/digital signature system (e.g., DocuSign) or via US mail or Express mail delivery of a “wet signature” for costs incurred, including Local Cost Share, and timely Quarterly Progress Reports as required by Paragraph 14, “Submission of Reports.” Payment will be made no more frequently than quarterly, in arrears, upon receipt of an invoice bearing the Grant Agreement number. Quarterly Progress Report must accompany an invoice ($0 Invoices are acceptable) and shall be submitted within 60 days following the end of the calendar quarter (i.e. invoices due May 30, August 29, November 29, and March 1). The State will notify the Grantee, in a timely manner, whenever, upon review of an invoice, the State determines that any portion or portions of the costs claimed are not eligible costs or is not supported by documentation or receipts acceptable to the State. The Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional documentation to the State to cure such deficiency(ies). If the Grantee fails to submit adequate documentation curing the deficiency(ies), the State will adjust the pending invoice by the amount of ineligible or unapproved costs.

Invoices submitted by the Grantee shall include the following information:

A. Costs incurred for work performed in implementing the Project during the period identified in the particular invoice.

B. Costs incurred for any interests in real property (land or easements) that have been necessarily acquired for a project during the period identified in the particular invoice for the implementation of a project.

C. Invoices shall be submitted on forms provided by the State and shall meet the following format requirements:
i. Invoices shall contain the date of the invoice, either the time period covered by the invoice or the invoice date received within the time period covered, and the total amount due. ii. Invoices shall be itemized based on the categories (i.e., tasks) specified in Exhibit B, “Budget.” The amount claimed for salaries/wages/consultant fees shall include a calculation formula (i.e., hours or days worked times the hourly or daily rate = the total amount claimed). iii. One set of sufficient evidence (i.e., receipts, copies of checks, personnel hours’ summary table, time sheets) shall be provided for all costs included in the invoice. iv. Each invoice shall clearly delineate those costs claimed for reimbursement from the State’s funding amount, as depicted in Paragraph 3, “Grant Amount” and those costs that represent the Grantee’s costs, as applicable, in Paragraph 4, “Grantee Cost Share.” DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

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v. Original signature and date of the Grantee’s Project Representative. Submit an electronic invoice, certified and transmitted via electronic/digital signature system (e.g., DocuSign), from authorized representative to the Project Manager or the original “wet signature” copy of the invoice form to the Project Manager at the following address: P.O. Box 942836 Sacramento, CA 94236.

All invoices submitted shall be accurate and signed under penalty of law. Any and all costs submitted pursuant to this Agreement shall only be for the tasks set forth herein. The Grantee shall not submit any invoice containing costs that are ineligible or have been reimbursed from other funding sources unless required and specifically noted as such (i.e., cost share). Any eligible costs for which the Grantee is seeking reimbursement shall not be reimbursed from any other source. Double or multiple billing for time, services, or any other eligible cost is illegal and constitutes fraud. Any suspected occurrences of fraud, forgery, embezzlement, theft, or any other misuse of public funds may result in suspension of disbursements of grant funds and/or termination of this Agreement requiring the repayment of all funds disbursed hereunder plus interest. Additionally, the State may request an audit pursuant to Standard Condition D.5 and refer the matter to the Attorney General’s Office or the appropriate district attorney’s office for criminal prosecution or the imposition of civil liability. (Civ. Code, §§ 1572-1573; Pen. Code, §§ 470, 487-489.)
9) ADVANCED PAYMENT. Water Code section 10551 authorizes advanced payment by the State for projects included and implemented in an applicable Integrated Regional Water Management Plan, and when the project proponent is a nonprofit organization; a disadvantaged community (DAC); or the project benefits a DAC. If a project is awarded less than $1,000,000 in grant funds, the project proponent may receive an advanced payment of fifty (50) percent of the grant award; the remaining fifty (50) percent of the grant award will be reimbursed in arrears after the advanced funds of a budget category have been fully expended. Within ninety (90) calendar days of execution of the Grant Agreement, the Grantee may provide the State an Advanced Payment Request. Advanced Payment Requests received ninety-one (91) calendar days after the execution of this Agreement will not be eligible to receive an advanced payment.

The Advanced Payment Request shall contain the following:

A. Documentation demonstrating that each Local Project Sponsor (if different from the Grantee, as listed in Exhibit I) was notified about their eligibility to receive an advanced payment and a response from the Local Project Sponsor stating whether it wishes to receive the advanced payment or not.

B. If the Grantee is requesting the advanced payment, the request(s) shall include:
i. Descriptive information of each project with an update on project status. ii. The names of the entities that will receive the funding for each project, including, but not limited to, an identification as to whether the project proponent or proponents are nonprofit organizations or a DAC, or whether the project benefits a DAC.
iii. A detailed Funding Plan which includes how the advanced payment will be expended (in terms of workplan, budget, and schedule) within the timeframe agreed upon by DWR and the Grantee. The Funding Plan must clearly identify the total budget (at Budget Category Level) for each project clearly showing the portion of advanced payment and reimbursement funds. iv. Any other information that DWR may deem necessary.

C. Upon review and approval of the Advanced Payment Request, DWR will authorize payment of the fully requested amount for the qualified project(s). Based on the project’s Funding Plan and other considerations, DWR may determine it is not prudent to advance the full request in a single disbursement. In such a case, DWR will develop a “Disbursement Schedule,” to disburse funds in installments. This Disbursement Schedule may change based on the project’s ongoing compliance with the Advanced Payment requirements and the project’s cash flow needs.

D. Once DWR authorizes the Advanced Payment Request, the Grantee shall submit Advanced Payment Invoice(s) for the initial amount based on the “Disbursement Schedule” on behalf of the LPS(s), DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.35 Grant Agreement No. 4600015400

containing the request for each qualified project, to the State with signature and date of the Grantee’s Project Representative, as indicated in Paragraph 21, “Project Representative.” The Grantee shall be responsible for the timely distribution of the advanced funds to the respective LPS(s). The Advanced Payment Invoice(s) shall be submitted on forms provided by the State and shall meet the following format requirements:
i. Invoice shall contain the date of the invoice, the time period covered by the invoice, and the total amount due.
ii. Invoice shall be itemized based on the budget categories specified in Exhibit B, “Budget.” iii. The State Project Manager will notify the Grantee, in a timely manner, when, upon review of an Advance Payment Invoice, the State determines that any portion or portions of the costs claimed are not eligible costs. The Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional documentation to cure such deficiency(ies). iv. On a quarterly basis, the Grantee will submit an Accountability Report to the State that demonstrates how actual expenditures compare with the scheduled budget. The Accountability Report shall include the following information:

1. An itemization of how advanced funds have been spent to-date (Expenditure Report), including documentation that supports the disbursements (e.g., contractor invoices, receipts, personnel hours, etc.). Accountability Reports shall be itemized based on the budget categories (i.e., tasks) specified in Exhibit B.

2. An updated Accountability Report including an updated Funding Plan that depicts how the remaining advanced funds will be expended and the activities and deliverables associated with the advanced funds within the timeframe agreed upon by DWR and the Grantee when the advanced payment request was approved.

3. Documentation that the funds were placed in a non-interest bearing account, including the dates of deposits and withdrawals from that account.

4. Proof of distribution of advanced funds to LPS(s), if applicable. v. The State’s Project Manager will notify the Grantee, in a timely manner, when, upon review of the Accountability Report, the State determines that any portion of the expenditures claimed are not eligible costs. The Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional documentation to cure such deficiency(ies). If costs are not consistent with the tasks in Exhibit A, the State will reject the claim and remove them from the Accountability Report.

E. Once the Grantee has spent all advanced funds in a budget category, then the method of payment will revert to the reimbursement process for that budget category specified in Paragraph 8, “Method of Payment for Reimbursement.”
10) REPAYMENT OF ADVANCES. The State may demand repayment from the Grantee of all or any portion of the advanced State funding along with interest at the California general obligation bond interest rate at the time the State notifies the Grantee, as directed by the State, and take any other action that it deems necessary to protect its interests for the following conditions:

A. A project is not being implemented in accordance with the provisions of the Grant Agreement.

B. The Grantee has failed in any other respect to comply with the provisions of this Grant Agreement, and if the Grantee does not remedy any such failure to the State’s satisfaction.

C. Failure by the Grantee to submit complete and accurate quarterly Accountability Reports by the required due dates, unless otherwise approved by DWR.

D. Failure to deposit funds in a non-interest-bearing account.

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E. Use of Advance Payment funds for ineligible expenses and/or activities not consistent with this Agreement.

F. Inappropriate use of funds, as deemed by DWR.

G. Repayment amounts may also include:
i. Actual costs incurred which are not consistent with the activities presented in Exhibit A, not supported, or are ineligible.
ii. Advanced funds which are not fully expended by project completion, notwithstanding Water Code section 10551(c)(4). Unused grant funds shall be returned to DWR within sixty (60) calendar days.

Any repayment of advanced funds may consist of reducing the amount from future reimbursement invoices. The State may consider the Grantee’s refusal to repay the requested advanced amount a material breach of this Agreement subject to the default provisions in Paragraph 12, “Default Provisions.” If the State notifies the Grantee of its decision to demand repayment or withhold the entire funding amount from the Grantee pursuant to this Paragraph, this Grant Agreement shall terminate upon receipt of such notice by the Grantee and the State shall no longer be required to provide funds under this Agreement. 11) WITHHOLDING OF DISBURSEMENTS BY THE STATE. If the State determines that a project is not being implemented in accordance with the provisions of this Grant Agreement, or that the Grantee has failed in any other respect to comply with the provisions of this Grant Agreement, and if the Grantee does not remedy any such failure to the State’s satisfaction, the State may withhold from the Grantee all or any portion of the State funding and take any other action that it deems necessary to protect its interests.

Where a portion of the State funding has been disbursed to the Grantee and the State notifies the Grantee of its decision not to release funds that have been withheld pursuant to Paragraph 12, “Default Provisions,” the portion that has been disbursed shall thereafter be repaid immediately with interest at the California general obligation bond interest rate at the time the State notifies the Grantee, as directed by the State. The State may consider the Grantee’s refusal to repay the requested disbursed amount a material breach subject to the default provisions in Paragraph 12, “Default Provisions.” If the State notifies the Grantee of its decision to withhold the entire funding amount from the Grantee pursuant to this Paragraph, this Grant Agreement shall terminate upon receipt of such notice by the Grantee and the State shall no longer be required to provide funds under this Grant Agreement and the Grant Agreement shall no longer be binding on either party.
12) DEFAULT PROVISIONS. The Grantee shall be in default under this Grant Agreement if any of the following occur:

A. Substantial breaches of this Grant Agreement, or any supplement or amendment to it, or any other Agreement between the Grantee and the State evidencing or securing the Grantee’s obligations.

B. Making any false warranty, representation, or statement with respect to this Grant Agreement or the application filed to obtain this Grant Agreement.

C. Failure to operate or maintain the Project in accordance with this Grant Agreement.

D. Failure to make any remittance required by this Grant Agreement, including any remittance recommended as the result of an audit conducted pursuant to Standard Condition D.5.

E. Failure to submit quarterly progress reports pursuant to Paragraph 5.

F. Failure to routinely invoice the State pursuant to Paragraph 8.

G. Failure to meet any of the requirements set forth in Paragraph 13, “Continuing Eligibility.” Should an event of default occur, the State shall provide a notice of default to the Grantee and shall give the Grantee at least ten (10) calendar days to cure the default from the date the notice is sent via firstclass mail to the Grantee. If the Grantee fails to cure the default within the time prescribed by the State, the State may do any of the following:

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A. Declare the funding be immediately repaid, with interest, which shall be equal to State of California general obligation bond interest rate in effect at the time of the default.

B. Terminate any obligation to make future payments to the Grantee.

C. Terminate the Grant Agreement.

D. Take any other action that it deems necessary to protect its interests.

In the event the State finds it necessary to enforce this provision of this Grant Agreement in the manner provided by law, the Grantee agrees to pay all costs incurred by the State including, but not limited to, reasonable attorneys' fees, legal expenses, and costs.
13) CONTINUING ELIGIBILITY. The Grantee shall meet the following ongoing requirement(s) and all eligibility criteria outlined in the 2022 Guidelines to remain eligible to receive State funds:

A. An urban water supplier that receives grant funds pursuant to this Agreement shall maintain compliance with the Urban Water Management Planning Act (UWMP; Wat. Code, § 10610 et seq.) and Sustainable Water Use and Demand Reduction (Wat. Code, § 10608 et seq.) as set forth on page 11 of the 2022 Guidelines and as stated on page 24 of the 2022 IRWM Implementation Grant Proposal Solicitation Package.

B. An agricultural water supplier receiving grant funds shall comply with Sustainable Water Use and Demand Reduction requirements outlined in Water Code section 10608, et seq. and have their Agricultural Water Management Plan (AWMP) deemed consistent by DWR. To maintain eligibility and continue funding disbursements, an agricultural water supply shall have their 2015 AWMP identified on the State’s website. For more information, visit the website listed in Appendix A in the 2022 Guidelines.

C. A surface water diverter receiving grant funds shall maintain compliance with diversion reporting requirements as outlined in Water Code section 5100 et. seq.

D. If applicable, the Grantee shall demonstrate compliance with the Sustainable Groundwater Management Act (SGMA) set forth on page 10 of the 2022 Guidelines.

E. If the Grantee has been designated as a monitoring entity under the California Statewide Groundwater Elevation Monitoring (CASGEM) Program, the Grantee shall maintain reporting compliance, as required by Water Code section 10932 and the CASGEM Program.

F. The Grantee shall adhere to the protocols developed pursuant to The Open and Transparent Water Data Act (Wat. Code, § 12406, et seq.) for data sharing, transparency, documentation, and quality control.

G. On March 4, 2022, the Governor issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. The EO may be found at:
https://www.gov.ca.gov/wp-content/uploads/2022/03/3.4.22-Russia-Ukraine-Executive-Order.pdf. “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. The EO directs DWR to terminate funding agreements with, and to refrain from entering any new agreements with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the State determine that the Grantee 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 the Grantee advance written notice of such termination, allowing the Grantee at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State.
14) SUBMISSION OF REPORTS. The submittal and approval of all reports is a requirement for the successful completion of this Grant Agreement. Reports shall meet generally accepted professional standards for technical reporting and shall be proofread for content, numerical accuracy, spelling, and grammar prior to DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.38 Grant Agreement No. 4600015400

submittal to the State. All reports shall be submitted to the State’s Project Manager and shall be submitted via the DWR “Grant Review and Tracking System” (GRanTS). If requested, the Grantee shall promptly provide any additional information deemed necessary by the State for the approval of reports. Reports shall be presented in the formats described in the applicable portion of Exhibit F, “Report Formats and Requirements.” The timely submittal of reports is a requirement for initial and continued disbursement of State funds. Submittal and subsequent approval by the State of a Project Completion Report is a requirement for the release of any funds retained for such project.

A. Quarterly Progress Reports: The Grantee shall submit quarterly Progress Reports to meet the State’s requirement for disbursement of funds. Progress Reports shall be uploaded via GRanTS, and the State’s Project Manager notified of upload. Progress Reports shall, in part, provide a brief description of the work performed, the Grantee’s activities, milestones achieved, any accomplishments and any problems encountered in the performance of the work under this Grant Agreement during the reporting period. The first Progress Report must accompany an invoice ($0 Invoices are acceptable) and shall be submitted within 60 days following the end of the calendar quarter (i.e. invoices due May 30, August 29, November 29, and March 1).

B. Accountability Report: The Grantee shall prepare and submit to the State an Accountability Report on a quarterly basis if the Grantee received an advanced payment, consistent with the provisions in Paragraph 9, “Advanced Payment.”
C. Project Completion Report: The Grantee shall prepare and submit to the State a separate Project Completion Report for each project included in Exhibit A. The Grantee shall submit a Project Completion Report (or a Component Completion Report, if a Project has multiple Components) within ninety (90) calendar days of Project/Component completion as outlined in Exhibit F.

D. Grant Completion Report: Upon completion of all the Projects included in Exhibit A, the Grantee shall submit to the State a Grant Completion Report. The Grant Completion Report shall be submitted within ninety (90) calendar days of submitting the Completion Report for the final project to be completed under this Grant Agreement, as outlined in Exhibits A, and F. Retention for any grant administration line items in the Budget of this Grant Agreement will not be disbursed until the Grant Completion Report is approved by the State.

E. Post-Performance Reports: The Grantee shall prepare and submit to the State Post-Performance Reports for the applicable project(s). Post-Performance Reports shall be submitted to the State within ninety (90) calendar days after the first operational year of a project has elapsed. This record keeping and reporting process shall be repeated annually for a total of three (3) years after the project begins operation.
15) OPERATION AND MAINTENANCE OF PROJECT. For the useful life of construction and implementation projects and in consideration of the funding made by the State, the Grantee agrees to ensure or cause to be performed the commencement and continued operation of the project, and shall ensure or cause the project to be operated in an efficient and economical manner; shall ensure all repairs, renewals, and replacements necessary to the efficient operation of the same are provided; and shall ensure or cause the same to be maintained in as good and efficient condition as upon its construction, ordinary and reasonable wear and depreciation excepted. The State shall not be liable for any cost of such maintenance, management, or operation. The Grantee or their successors may, with the written approval of the State, transfer this responsibility to use, manage, and maintain the property. For purposes of this Grant Agreement, “useful life” means period during which an asset, property, or activity is expected to be usable for the purpose it was acquired or implemented; “operation costs” include direct costs incurred for material and labor needed for operations, utilities, insurance, and similar expenses, and “maintenance costs” include ordinary repairs and replacements of a recurring nature necessary for capital assets and basic structures and the expenditure of funds necessary to replace or reconstruct capital assets or basic structures. Refusal by the Grantee to ensure operation and maintenance of the projects in accordance with this provision may, at the option of the State, be considered a breach of this Grant Agreement and may be treated as default under Paragraph 12, “Default Provisions.” DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

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16) MONITORING PLAN REQUIREMENTS. A Monitoring Plan shall be submitted to the State prior to disbursement of State funds for construction or monitoring activities. The Monitoring Plan should incorporate Post-Performance Monitoring Report requirements as defined and listed in Exhibit F, and follow the guidance provided in Exhibit L, “Project Monitoring Plan Guidance.” 17) STATEWIDE MONITORING REQUIREMENTS. The Grantee shall ensure that all groundwater projects and projects that include groundwater monitoring requirements are consistent with the Groundwater Quality Monitoring Act of 2001 (Water Code § 10780 et seq.) and, where applicable, that projects that affect water quality shall include a monitoring component that allows the integration of data into statewide monitoring efforts, including where applicable, the Surface Water Ambient Monitoring Program carried out by the State Water Resources Control Board. See Exhibit G for web links and information regarding other State monitoring and data reporting requirements.
18) NOTIFICATION OF STATE. The Grantee shall promptly notify the State, in writing, of the following items:

A. Events or proposed changes that could affect the scope, budget, or work performed under this Grant Agreement. The Grantee agrees that no substantial change in the scope of a project will be undertaken until written notice of the proposed change has been provided to the State and the State has given written approval for such change. Substantial changes generally include changes to the scope of work, schedule or term, and budget.

B. Any public or media event publicizing the accomplishments and/or results of this Grant Agreement and provide the opportunity for attendance and participation by the State’s representatives. The Grantee shall make such notification at least fourteen (14) calendar days prior to the event.

C. Discovery of any potential archaeological or historical resource. Should a potential archaeological or historical resource be discovered during construction, the Grantee agrees that all work in the area of the find shall cease until a qualified archaeologist has evaluated the situation and made recommendations regarding preservation of the resource, and the State has determined what actions should be taken to protect and preserve the resource. The Grantee agrees to implement appropriate actions as directed by the State.

D. The initiation of any litigation or the threat of litigation against the Grantee or an LPS regarding the Project or which may affect the Project in any way.

E. Applicable to construction projects only: Final inspection of the completed work on a project by a Registered Professional (Civil Engineer, Engineering Geologist, or other State approved certified/licensed Professional), in accordance with Exhibit D. The Grantee shall notify the State’s Project Manager of the inspection date at least fourteen (14) calendar days prior to the inspection in order to provide the State the opportunity to participate in the inspection. 19) NOTICES. Any notice, demand, request, consent, or approval that either party desires or is required to give to the other party under this Grant Agreement shall be in writing. Notices may be transmitted by any of the following means:

A. By delivery in person.

B. By certified U.S. mail, return receipt requested, postage prepaid.

C. By “overnight” delivery service, provided that next-business-day delivery is requested by the sender.

D. By electronic means.

E. Notices delivered in person will be deemed effective immediately on receipt (or refusal of delivery or receipt). Notices sent by certified mail will be deemed effective given ten (10) calendar days after the date deposited with the U.S. Postal Service. Notices sent by overnight delivery service will be deemed effective one business day after the date deposited with the delivery service. Notices sent electronically will be effective on the date of transmission, which is documented in writing. Notices DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.40 Grant Agreement No. 4600015400

shall be sent to the addresses listed below. Either party may, by written notice to the other, designate a different address that shall be substituted for the one below. 20) PERFORMANCE EVALUATION. Upon completion of this Grant Agreement, the Grantee’s performance will be evaluated by the State and a copy of the evaluation will be placed in the State file and a copy sent to the Grantee.
21) PROJECT REPRESENTATIVES. The Project Representatives during the term of this Grant Agreement are as follows:

Department of Water Resources Regional Water Management Foundation Arthur Hinojosa
Manager, Division of Regional Assistance
P.O. Box 942836
Sacramento, CA 94236
Phone: (916) 902-6713
Email: [email protected]
John Ricker
President
7807 Soquel Dr.

Aptos, CA 95003
Phone: (831) 662-2000
Email: [email protected]
Direct all inquiries to the Project Manager:

Department of Water Resources Regional Water Management Foundation Charles Polc
Environmental Scientist
P.O. Box 942836
Sacramento, CA 94236
Phone: (916) 326-9137
Email: [email protected]
Tim Carson
Program Director
7807 Soquel Dr.

Aptos, CA 95003
Phone: (831)) 662-2050
Email: [email protected]
Either party may change its Project Representative or Project Manager upon written notice to the other party.
22) STANDARD PROVISIONS. This Grant Agreement is complete and is the final Agreement between the parties. The following Exhibits are attached and made a part of this Grant Agreement by this reference:

Exhibit A – Work Plan
Exhibit B – Budget
Exhibit C – Schedule
Exhibit D – Standard Conditions
Exhibit E – Authorizing Resolution
Exhibit F – Report Formats and Requirements
Exhibit G – Requirements for Data Submittal
Exhibit H – State Audit Document Requirements and Cost Share Guidelines for the Grantee Exhibit I – Local Project Sponsors and Project Locations Exhibit J – Appraisal Specifications
Exhibit K – Information Needed for Escrow Processing and Closure Exhibit L – Project Monitoring Plan Guidance
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7.41 Grant Agreement No. 4600015400

Exhibit M – Invoice Guidance for Administrative and Overhead Charges IN WITNESS WHEREOF, the parties hereto have executed this Grant Agreement.

STATE OF CALIFORNIA

DEPARTMENT OF WATER RESOURCES

REGIONAL WATER MANAGEMENT

FOUNDATION
Arthur Hinojosa
Manager, Division of Regional Assistance
John Ricker
President
Date Date
Approved as to Legal Form and Sufficiency
_____________________________
Robin Brewer
Assistant General Counsel,
Office of the General Counsel
Date___________________________
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F 11/27/2023
For
11/28/2023
11/28/2023

7.42 Grant Agreement No. 4600015400

EXHIBIT A

WORK PLAN
PROPOSITION 1 ROUND 2 SANTA CRUZ IRWM IMPLEMENTATION GRANT Grant Administration
IMPLEMENTING AGENCY: Regional Water Management Foundation (Grantee) PROJECT DESCRIPTION: The Grantee will administer these funds and respond to DWR’s reporting and compliance requirements associated with the grant administration. This Grantee will act in a coordination role: disseminating grant compliance information to the project managers responsible for implementing the projects contained in this Agreement, obtaining and retaining evidence of compliance (e.g., CEQA/NEPA documents, reports, monitoring compliance documents, labor requirements, etc.), obtaining data for progress reports from individual project managers, assembling and submitting progress reports to the State, and coordinating all invoicing and payment of invoices.

Budget Category (a): Project Administration
Task 1: Agreement Administration
The Grantee will respond to DWR’s reporting and compliance requirements associated with the grant administration. The Grantee will complete Local Project Sponsor Agreements and will coordinate with the project managers and staff of the Local Project Sponsor responsible for implementing the projects contained in this agreement.

Task 2: Invoicing
The Grantee will be responsible for compiling invoices for submittal to DWR. This includes collecting invoice documentation from each of the Local Project Sponsors and compiling the information into a DWR Invoice Packet.

Deliverables:
• Quarterly Invoices and associated backup documentation Task 3: Reporting
The Grantee will be responsible for compiling progress reports for submittal to DWR. The Grantee will coordinate with Local Project Sponsor staff to retain consultants as needed to prepare and submit progress reports and final project completion reports for each project, as well as the grant completion report.

Reports will meet generally accepted professional standards for technical reporting and the requirements terms of the contract with DWR outlined in Exhibit F of this Agreement.

Deliverables:
• Quarterly Progress Reports
• Grant Completion Report
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.43 Grant Agreement No. 4600015400

PROJECT 1: Fire-Hardening of Critical Water Supply Infrastructure IMPLEMENTING AGENCY: San Lorenzo Valley Water District (SLVWD) PROJECT DESCRIPTION: The project will fire-harden up to 13 structures that house critical water supply distribution system infrastructure, specifically the facilities that house booster pumps, which are integral to the operation of the water supply system. These booster pump stations provide potable and fire suppression water to 2,918 connections and a population of about 9,500. The project will ensure public water security and will improve water supply reliability for the community by protecting 651 acre-feet per year (AFY) of water from potential impacts of wildfire.

Budget Category (a): Project Administration
Task 1: Project Management
Complete a Local Project Sponsor Agreement with Grantee, provide grant compliance documents as needed and coordinate with Grantee on matters related to project and grant requirements. Prepare invoices including relevant supporting documentation for submittal to DWR via the Grantee. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors.

Deliverables:
• Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during the reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR via Grantee.

Prepare Project Completion Report and submit to DWR no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.

Deliverables:
• Quarterly Project Progress Reports
• Project Completion Report
• Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
No land purchase or easement acquisition is required for this project.

Deliverables: N/A
Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
Not applicable.

Deliverables: N/A
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.44 Grant Agreement No. 4600015400

Task 5: CEQA Documentation
Complete environmental review pursuant to CEQA. Prepare all necessary environmental documentation.

Prepare letter stating no legal challenges (or addressing legal challenges).

Deliverables:
• All completed CEQA documents as required
• Legal Challenges Letter
Task 6: Permitting
SLVWD conducted a preliminary assessment of the work to be performed, no permits were identified as needed to proceed.

Deliverables: N/A
Task 7: Design
SLVWD has completed a standard design for pump house structures. This task will include application of the standard design to each specific site; to include any required demolition of existing facilities, grading, stormwater control, fire protection/clearing of site, evaluation of and possible revisions to electrical and communications facilities, and any required access improvements. Each of the individual pump stations have site specific conditions, where applicable, site-specific design features not included in the standard design, may be incorporated into final designs concurrent with Construction (Task 11) as construction at multiple sites may be overlapping and/or occurring simultaneously.

Deliverables:
• Final Site-specific Design Plans
• Final Standard Pump House Design Plans
• Final Project Specifications
Task 8: Project Monitoring Plan
Develop and submit a Project Monitoring Plan per Paragraph 16 for DWR’s review and approval.

Deliverables:
• Project Monitoring Plan
Budget Category (d): Construction/Implementation
Task 9: Contract Services
This task must comply with the Standard Condition D.11 – Competitive Bidding and Procurements. Activities necessary (as applicable) to secure a contractor and award the contract, including: develop bid documents, prepare advertisement and contract documents for construction contract bidding, conduct pre-bid meeting, bid opening and evaluation, selection of the contractor, award of contract, and issuance of notice to proceed.

Deliverables:
• Bid Documents
• Proof of Advertisement
• Award of Contract
• Notice to Proceed
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.45 Grant Agreement No. 4600015400

Task 10: Construction Administration
This task includes managing contractor submittal review, answering requests for information, and issuing work directives. An engineering construction observer will be on site for the duration of the project.

Construction observer duties include documenting of pre-construction conditions, daily construction diary, preparing change orders, addressing questions of contractors on site, reviewing/updating project schedule, reviewing contractor log submittals and pay requests, forecasting cash flow, notifying contractor if work is not acceptable. Upon completing the project, the DWR Certificate of Project Completion and record drawings will be provided to DWR.

Deliverables:
• DWR Certificate of Project Completion
• Record Drawings
Task 11: Construction
Construction activities will occur at up to 13 critical water infrastructure facilities that house water distribution booster pump stations.

For pump houses with wood roofs and concrete walls, fire-hardening will involve removal/demolition of the existing pump house wood roof and replacement with corrugated steel roofs and sheathing.

For pump houses with both wooden roofs and walls, fire-hardening treatments will involve a full retrofit to include steel roofs, steel framing, galvanized corrugated sheathing for roof and wall paneling, and concrete masonry unit walls. Activities at these locations will include: setting up temporary bypass pump facilities; removal/demolition of old facility piping; removal and protection of existing pumps and controls; site work, including preparation of slab, parking/access improvements, and retaining of hillsides; construction of the new pump house structure; installation of new plumbing and reinstalling existing pumps; and bringing the facility online.

Deliverables:
• Photographic Documentation of Progress
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.46 Grant Agreement No. 4600015400

PROJECT 2: Equalization Tank Replacement Project
IMPLEMENTING AGENCY: County of Santa Cruz, County Service Area 7 - Boulder Creek Sanitation PROJECT DESCRIPTION: The project will install a 110,000-gallon equalization tank at the County Service Area 7’s wastewater treatment plant to replace its current 50,000-gallon tank. The equalization tank is used as a holding basin for sewer influent leaving the grinder. It allows for optimization of the wastewater treatment plant processes during variations of flows. The project will increase water storage by 60,000 gallons, decrease emergency hauling during seasonal rain events, and provide the community with 0.26 AFY of water savings and improved operational efficiency.

Budget Category (a): Project Administration
Task 1: Project Management
Complete Local Project Sponsor Agreement with Grantee, provide grant compliance documents as needed and coordinate with Grantee on matters related to project and grant requirements. Prepare invoices including relevant supporting documentation for submittal to DWR via the Grantee. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors.

Deliverables:
• Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during the reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR via the Grantee.

Prepare Project Completion Report and submit to DWR via the Grantee no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.

Deliverables:
• Quarterly Project Progress Reports
• Project Completion Report
• Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
No land purchase or easement acquisition is required for this project.

Deliverables: N/A
Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
Not applicable.

Deliverables: N/A
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.47 Grant Agreement No. 4600015400

Task 5: CEQA Documentation
Complete environmental review pursuant to CEQA. Prepare all necessary environmental documentation.

Prepare letter stating no legal challenges (or addressing legal challenges).

Deliverables:
• All completed CEQA documents as required
• Legal Challenges Letter
Task 6: Permitting
Not applicable. Permits are not anticipated to be required for this project.

Deliverables:
• N/A
Task 7: Design
Complete the Basis of Design Report, perform topography surveys, develop surface elevations, complete necessary plan sheets (grading, drainage, electrical, tank foundation, etc.) for the equalization tank and its appurtenances. Develop bid items and estimates of quantities, complete detailed special provisions for the construction contract, complete internal constructability review of final plans, specifications, and estimates package.

Deliverables:
• Basis of Design Report
• 100% Design Plans and Specifications
Task 8: Project Monitoring Plan
Develop and submit a Project Monitoring Plan per Paragraph 16 for DWR’s review and approval.

Deliverables:
• Project Monitoring Plan
Budget Category (d): Construction/Implementation
Task 9: Contract Services
This task must comply with the Standard Condition D.11 – Competitive Bidding and Procurements. Activities necessary (as applicable) to secure a contractor and award the contract, including: develop bid documents, prepare advertisement and contract documents for construction contract bidding, conduct pre-bid meeting (if necessary), bid opening and evaluation, selection of the contractor, award of contract, contract execution and issuance of notice to Contract Execution.

Deliverables:
• Bid Documents
• Proof of Advertisement
• Award of Contract
• Notice to Proceed
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.48 Grant Agreement No. 4600015400

Task 10: Construction Administration
This task includes managing the construction contract from execution through the Notice of Completion. A construction inspector will be on site for the duration of the project. Construction inspector duties include documenting of pre-construction conditions, daily construction diary addressing questions of contractors on site, schedule material testing, ensuring compliance with the project plans and specifications, tracking bid item quantiles, and tracking changes for record (as-builts) drawings. A resident engineer will be assigned to the project for reviewing conducting progress meetings, contractor submittals, reviewing/updating project schedules, ensuring labor compliance, preparing change orders, reviewing pay requests, and completing progress payments, forecasting budget. Upon completing the project, the DWR Certificate of Project Completion and record drawings will be provided to DWR.

Deliverables:
• DWR Certificate of Project Completion
• Record Drawings
Task 11: Construction
Construction activities are outlined below.

Site preparation will include clearing and grubbing, implementing Best Management Practices (BMPs), installing fencing, and environmental measures and/or work area flagging/fencing. Existing tank and foundation demolition, including removing all waste and temporary holding and hauling of wastewater during construction as necessary. The new tank foundation includes site grading, foundation excavation and subgrade preparation, reinforcement placement, and foundation pour and cure.

Construct equalization tank and appurtenances: Modify/extend conveyance piping and install control valves between equalization tank and the treatment plant.

Electrical/Controls/Instrumentation includes installation of conduit and wiring associated with appurtenances and instrumentation for flow/level monitoring through SCADA.

Site Restoration to establish erosion control and permanent BMPs and restore site to pre-construction conditions.

Deliverables:
• Photographic Documentation of Progress
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.49 Grant Agreement No. 4600015400

PROJECT 3: Decision-Support Tool - Understanding Climate Influenced River Flooding IMPLEMENTING AGENCY: City of Santa Cruz (City)
PROJECT DESCRIPTION: The City will develop a decision-support tool (DST) to improve the understanding of climate influenced river flooding on the San Lorenzo River (SLR) and inform future City management actions. The City will conduct technical analyses of climate change vulnerabilities on watershed hydrology and river hydraulics to develop a decision support tool that utilizes an adaptation pathways approach.

Adaptation pathways utilize triggers and thresholds to proactively signal when infrastructure and programming should be implemented to mitigate impacts.

Budget Category (a): Project Administration
Task 1: Project Management
Complete a Local Project Sponsor Agreement with Grantee, provide grant compliance documents as needed and coordinate with Grantee on matters related to project and grant requirements. Prepare invoices including relevant supporting documentation for submittal to DWR via the Grantee. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors. The project team will meet monthly in virtual meetings.

Deliverables:
• Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR via Grantee.

Prepare Project Completion Report and submit to DWR no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.

Deliverables:
• Quarterly Project Progress Reports
• Project Completion Report
• Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
No land purchase or easement acquisition is required for this project.

Deliverables: N/A
Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
Not applicable.

Deliverables: N/A
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.50 Grant Agreement No. 4600015400

Task 5: CEQA Documentation
Not applicable.

Deliverables: N/A
Task 6: Permitting
Not applicable.

Deliverables: N/A
Task 7: Design
The Design Task includes the following:

Mobilize Stakeholders – Mobilize key departments, consultants, and agencies to inform the project design.

Data Compilation – Compile and review existing hydrologic, hydraulic and sediment data.

Developing hydroclimate scenarios – Scenarios will include up to three future time periods, two emissions scenarios and two formulations of climate model ensembles to characterize the range of future climate conditions over time and reflect the uncertainty in projected climate data.

Hydrologic modeling – Characterize extreme streamflow conditions using a combination of existing downscaled climate products of surface and subsurface flow, adapting the results from an existing hydrologic model of the system to investigate peak flow increases, and developing a hydrologic model of the watershed capable of simulating extreme flood events and using downscaled rainfall data to drive the model. By applying all three approaches, we will test the hypothesis that they will provide similar results, explore the degree of concurrence between the methods, and provide valuable insight to others that may want to undertake similar work in the region.

Hydrodynamic modeling – Conduct two dimensional (2D) hydrodynamic modeling utilizing the existing U.S.

Army Corps of Engineers (USACE) 1-D HEC-6T and HEC-RAS models of the in-channel portion of the SLR expanded model to include the overbank areas as 2D floodplain elements utilizing HEC-RAS 5. The suitability of the HEC-6T and HEC-RAS models will be evaluated, and a determination made of which model to use for characterizing sediment transport conditions for the riverbed.

Deliverables:
• Draft and final technical documentation of the analysis assumptions, tools, and results.

Task 8: Project Monitoring Plan
Not applicable.

Deliverables: N/A
Budget Category (d): Construction/Implementation
Task 9: Contract Services
Not applicable.

Deliverables: N/A
Task 10: Construction Administration
Not applicable.

DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.51 Grant Agreement No. 4600015400

Deliverables: N/A
Task 11: Implementation
Implementation activities are described below:

Future flood hazard visualizations – Develop flood plain mapping from hydrodynamic modeling to illustrate flood hazards and floodplain extents for future time periods and climate horizons.

DST Development – City staff will utilize flood thresholds, new hazard mapping, relative costs and benefits of flood mitigation, and strategies to develop a DST to guide timing and sequencing of adaptation strategies to mitigate flood risk. The DST will consist of adaptation pathways visualizations and flood hazard mapping with sequenced adaptation strategies and will become part of the upcoming 2018 Climate Adaptation Plan Update and Local Hazard Mitigation Plan Updates.

Community Outreach – City staff will perform outreach to community members and frontline groups in economically Disadvantaged Community (DAC) census tracts within the SLR floodplain to guide flood control management and bolster resilience of the flood control systems.

Findings – Preparing draft and final report with technical documentation of the analysis assumptions, tools, results, and final flood hazard mapping.

Deliverables:
• Decision Support Tool Outputs: adaptation pathways visualizations and flood hazard mapping with sequenced adaptation strategies
• Final report with technical documentation of the analysis assumptions, tools, results, and final flood hazard mapping
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.52 Grant Agreement No. 4600015400

PROJECT 4: Recreational Vehicle Sewage Dump Station
IMPLEMENTING AGENCY: City of Santa Cruz Public Works (SCPW) PROJECT DESCRIPTION: The project will construct a recreational vehicle (RV) dump station so wastewater from RVs can be safely emptied into the City’s sanitary sewer system. The dump station will provide a readily accessible location where people can safely dispose of RV wastewater with the goal of reducing the number of illicit RV dumping incidents which discharge wastewater into the City's storm drain system. The dump station will be offered as a free public service. The project will reduce bacteria contamination to the City’s main water source, the SLR, and will result in an estimated 0.16 AFY of sewage being properly disposed of at the new RV sewer dump station.

Budget Category (a): Project Administration
Task 1: Project Management
Complete a Local Project Sponsor Agreement with Grantee, provide grant compliance documents as needed and coordinate with Grantee on matters related to project and grant requirements. Prepare invoices including relevant supporting documentation for submittal to DWR via the Grantee. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors.

Deliverables:
• Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR via Grantee.

Prepare Project Completion Report and submit to DWR no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.

Deliverables:
• Quarterly Project Progress Reports
• Project Completion Report
• Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
No land purchase or easement acquisition is required for this project.

Deliverables: N/A
Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
Not applicable.

Deliverables: N/A
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.53 Grant Agreement No. 4600015400

Task 5: CEQA Documentation
Complete environmental review pursuant to CEQA. Prepare all necessary environmental documentation.

Prepare letter stating no legal challenges (or addressing legal challenges).

Deliverables:
• All completed CEQA documents as required
• Legal Challenges Letter
Task 6: Permitting
The following permits are anticipated to be acquired for this project: City of Santa Cruz, Public Works Department - Encroachment Permit, Street Opening Permit; City of Santa Cruz, Parks and Recreation Department - Tree Removal Permit; and Santa Cruz County Environmental Health - Sewage Disposal Permit.

Deliverables:
• Permits as required
Task 7: Design
SCPW staff will prepare the design of the dump station. The design will emphasize durability, ease of use for patrons and ease of maintenance. The system will be designed to minimize the efforts required by staff to address spill overflow, vandalism, clogging, and general repair work.

Deliverables:
• Basis of Design Report
• 100% Design Plans and Specifications
Task 8: Project Monitoring Plan
Develop and submit a Project Monitoring Plan per Paragraph 16 for DWR’s review and approval.

Deliverables:
• Project Monitoring Plan
Budget Category (d): Construction/Implementation
Task 9: Contract Services
This task must comply with the Standard Condition D.11 – Competitive Bidding and Procurements. Activities necessary (as applicable) to secure a contractor and award the contract, including: develop bid documents, prepare advertisement and contract documents for construction contract bidding, conduct pre-bid meeting, bid opening and evaluation, selection of the contractor, award of contract, and issuance of notice to proceed.

Deliverables:
• Bid Documents
• Proof of Advertisement
• Award of Contract
• Notice to Proceed
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.54 Grant Agreement No. 4600015400

Task 10: Construction Administration
This task includes managing contractor submittal review, answering requests for information, and issuing work directives. An engineering construction observer will be on site for the duration of the project.

Construction observer duties include documenting of pre-construction conditions, daily construction diary, preparing change orders, addressing questions of contractors on site, reviewing/ updating project schedule, reviewing contractor log submittals and pay requests, forecasting cash flow, notifying contractor if work is not acceptable. Upon completing the project, the DWR Certificate of Project Completion and record drawings will be provided to DWR.

Deliverables:
• DWR Certificate of Project Completion
• Record Drawings
Task 11: Construction
Construction activities are outlined below.
11(a): Mobilization and Demobilization construction staging areas, construction fencing, sediment and erosion control BMPs, materials and equipment storage.
11(b): Site preparation will include tree removal, demolition, clearing/grubbing, and grading. 11(c): The single dump station will be constructed around a concrete pad. The concrete pad will also have a garbage can and potable water supply hose. The water supply hose will be equipped with a timed shutoff and will allow users to flush hoses and connections. The concrete pad will be sloped towards the sanitary sewer connection port and will include speed bumps/berms for additional spill containment. The dump station will also include an asphalt access lane/turnout located in the City street and lighting. The access lane will be sloped towards the gutter, utilities (sewer/water/lighting), paving/grading/striping and signage installation.
11(d): Project commissioning will include system testing and final inspections.

Deliverables:
• Photographic Documentation of Progress
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.55 Grant Agreement No. 4600015400

PROJECT 5: Atkinson Lane Integrated Flood Management and Watershed Restoration Project IMPLEMENTING AGENCY: City of Watsonville
PROJECT DESCRIPTION: The project will design and implement BMPs to reduce sediment inputs into the Atkinson wetland, thereby implementing integrated flood control measures and providing flood risk reduction benefits for approximately 391 acres of surrounding and downstream DACs within the City of Watsonville.

The project will also restore and enhance native habitat within the approximately 8-acre Atkinson wetland complex and will engage and educate local community volunteers and school-aged groups throughout the project.

Budget Category (a): Project Administration
Task 1: Project Management
Activities will include completing a Local Project Sponsor Agreement with Grantee, providing grant compliance documents as needed and coordinating with Grantee on matters related to project and grant requirements. Manage Grant Agreement including compliance with grant requirements, and preparation and submission of supporting grant documents. Prepare invoices including relevant supporting documentation for submittal to DWR via the Grantee. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors.

Deliverables:
• Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR.

Prepare Project Completion Report and submit to DWR no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.

Deliverables:
• Quarterly Project Progress Reports
• Project Completion Report
• Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
No land purchase or easement acquisition is required for this project.

Deliverables: N/A
Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
Not applicable.

Deliverables: N/A
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.56 Grant Agreement No. 4600015400

Task 5: CEQA Documentation
Complete environmental review pursuant to CEQA. Prepare all necessary environmental documentation.

Prepare letter stating no legal challenges (or addressing legal challenges).

Deliverables:
• All completed CEQA documents as required
• Legal Challenges Letter
Task 6: Permitting
The following permits are anticipated to be acquired for this project: CA Department of Fish and Wildlife - Streambed Alternation Agreement (1600); Regional Water Quality Control Board - 401 Water Quality Certification; U.S. Army Corps of Engineers - Section 404 Permit; U.S. Fish and Wildlife Service - Section 7 Consultation; and Santa Cruz County - Grading Permit.

The project may also enroll in the Resource Conservation District of Santa Cruz County’s Partners In Restoration Permit Coordination Program.

Deliverables:
• Permits as required
Task 7: Design
A qualified technical consultant will be selected to develop project designs for 1 - 3 stormwater best management practices that will be designed to reduce sediment deposition into the Atkinson wetland and improve water quality within the wetland complex associated with urban run-off into the wetland complex. A multi-phase habitat restoration plan has been developed for the wetland complex. As a part of this project, a detailed habitat restoration for the first phase (Phase 1) work that will be implemented as a part of this project will be developed that will be aligned with the planned water quality and flood risk reduction work.

Deliverables:
• Request for Qualifications or Request for Proposal for Design • 100% Design Plans and Specifications for Stormwater Improvements • 100% Habitat restoration plans, Phase 1 Atkinson Wetland Complex Task 8: Project Monitoring Plan
Develop and submit a Project Monitoring Plan per Paragraph 16 for DWR’s review and approval.

Deliverables:
• Project Monitoring Plan
Budget Category (d): Construction/Implementation
Task 9: Contract Services
This task must comply with the Standard Condition D.11 – Competitive Bidding and Procurements. Activities necessary (as applicable) to secure a contractor and award the contract, including: develop bid documents, prepare advertisement and contract documents for construction contract bidding, conduct pre-bid meeting, bid opening and evaluation, selection of the contractor, award of contract, and issuance of notice to proceed.

DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.57 Grant Agreement No. 4600015400

Deliverables:
• Bid Documents
• Proof of Advertisement
• Award of Contract
• Notice to Proceed
Task 10: Construction Administration
This task includes managing contractor submittal review, answering requests for information, and issuing work directives. An engineering construction observer will be on site for the duration of the project.

Construction observer duties include documenting of pre-construction conditions, daily construction diary, preparing change orders, addressing questions of contractors on site, reviewing/ updating project schedule, reviewing contractor log submittals and pay requests, forecasting cash flow, notifying contractor if work is not acceptable. Upon completing the project, the DWR Certificate of Project Completion and record drawings will be provided to DWR.

Deliverables:
• DWR Certificate of Project Completion
• Record Drawings
Task 11: Construction
Construction activities are outlined below.
11(a): Site preparation includes clearing and grubbing of non-native vegetation, grading in proposed areas, excavation, and habitat restoration/enhancement work. 11(b): Create BMPs for stormwater benefits and implement associated erosion control measures.

Implement phase I habitat restoration project activity, including installation of native plants and erosion and sediment control measures.
11(c): Engage youth and local community members in the implementation of habitat restoration work, such as during invasive plant removal activities, habitat restoration plantings, and related community engagement to inform residents about the project. Engagement activities will be designed to be bilingual and effective for the local community audience.
11(d): Assess baseline conditions and pre- and post- construction habitat conditions with photographic monitoring and California Rapid Assessment methodology. Complete California Rapid Assessment report.

Deliverables:
• Photographic Documentation of Progress
• California Rapid Assessment report and pre- and post-construction habitat conditions DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.58 Grant Agreement No. 4600015400

PROJECT 6: Drinking Water Treatment System & Secondary Water Source Rountree Facility IMPLEMENTING AGENCY: Santa Cruz County General Services Department (County) PROJECT DESCRIPTION: The project includes 1) installing an ion exchange water treatment system to reduce hexavalent chromium [Cr(VI)] to less than the proposed California drinking water maximum contaminant level (MCL) of 10 parts per billion and reduce per- and polyfluoroalkyl substances (PFAS) to the greatest extent feasible in anticipation of future PFAS MCLs, and 2) conducting a feasibility study of the Rountree Facility water system to consider the most appropriate approaches to add reliability and redundancy. The project will improve drinking water quality and will aid in the development of secondary water sources for the community.

Budget Category (a): Project Administration
Task 1: Project Management
County staff will complete a Local Project Sponsor Agreement with Grantee, provide grant compliance documents as needed and coordinate with Grantee on matters related to project and grant requirements.

County staff will prepare invoices including relevant supporting documentation for submittal to DWR via the Grantee. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors.

Deliverables:
• Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR via grantee.

Prepare Project Completion Report and submit to DWR no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.

Deliverables:
• Quarterly Project Progress Reports
• Project Completion Report
• Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
No land purchase or easement acquisition is required for this project.

Deliverables: N/A
Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
The County recently completed studies to evaluate potential water treatment approaches for the Rountree Facility drinking water system. The study examined potential approaches to address Cr(VI) and also PFAS contaminants. A recent (December 2022) County sponsored study by Corona Environmental Consulting, LLC.

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recommended a Single Use Strong Base Ion Exchange (IX) for the Rountree Correctional Facility Water Treatment Facility.

The proposed feasibility study will consider potential secondary water sources for the Rountree Facility. The feasibility study will evaluate potential options, such as: 1) the use of a new water source; or 2) an intertie to a well located at the nearby Buena Vista Landfill; or 3) an intertie to a well located at the Buena Vista Migrant Center (Migrant Center). The Migrant Center, a migrant labor housing complex, is located on the same parcel as the Rountree Facility and is owned by the County of Santa Cruz but is served by a separate water system (CA 4400763). The Migrant Center houses up to 450 seasonal agricultural workers/families (May to November) and 145 year-round residents. The Migrant Center includes housing units, a laundry facility, day care and three school buildings. The Migrant Center is also designated “at risk” due to reliance upon a single water source. An intertie, if determined to be feasible, could improve the redundancy of the water systems serving both the Rountree Facility and the Migrant Center.

Key to the proposed feasibility study is to determine if the recommended treatment system for the Rountree Facility could effectively treat water for both systems (Rountree and Migrant Center) or if it is preferrable to keep the two treatment systems separate. The feasibility study will also assess if the physical consolidation of these systems is a beneficial alternative for the County to pursue.

Deliverables:
• Relevant Feasibility Studies
Task 5: CEQA Documentation
Complete environmental review pursuant to CEQA. Prepare all necessary environmental documentation.

Prepare letter stating no legal challenges (or addressing legal challenges).

Deliverables:
• All completed CEQA documents as required
• Legal Challenges Letter
Task 6: Permitting
The following permits are anticipated to be acquired for this project: Domestic Water System Permit amendment; County and/or state permits as applicable.

Deliverables:
• Permits as required
Task 7: Design
The County will issue a Request for Qualifications or Request for Proposal to select a consultant to complete the project designs. The project designs will be informed by the findings and recommendations of Task 4 Feasibility Studies pertaining to the water treatment approaches and potential secondary water sources. The County will determine the preferred approach to contract for the design and may elect to utilize a design-bidbuild or design-build approach that is consistent with the County’s procurement policy and the Grant Standard Conditions.

Deliverables:
• Basis of Design Report
• 100% Design Plans and Specifications
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7.60 Grant Agreement No. 4600015400

Task 8: Project Monitoring Plan
Develop and submit a Project Monitoring Plan per Paragraph 16 for DWR’s review and approval.

Deliverables:
• Project Monitoring Plan
Budget Category (d): Construction/Implementation
Task 9: Contract Services
This task must comply with the Standard Condition D.11 – Competitive Bidding and Procurements. Activities necessary (as applicable) to secure a contractor and award the contract, including: develop bid documents, prepare advertisement and contract documents for construction contract bidding, conduct pre-bid meeting, bid opening and evaluation, selection of the contractor, award of contract, and issuance of notice to proceed.

Deliverables:
• Bid Documents
• Proof of Advertisement
• Award of Contract
• Notice to Proceed
Task 10: Construction Administration
This task includes managing contractor submittal review, answering requests for information, and issuing work directives. An engineering construction observer will be on site for the duration of the project.

Construction observer duties include documenting of pre-construction conditions, daily construction diary, preparing change orders, addressing questions of contractors on site, reviewing/ updating project schedule, reviewing contractor log submittals and pay requests, forecasting cash flow, notifying contractor if work is not acceptable. Upon completing the project, the DWR Certificate of Project Completion and record drawings will be provided to DWR.

Deliverables:
• DWR Certificate of Project Completion
• Record Drawings
Task 11: Construction
Drinking water treatment system improvements to address drinking water contaminants at the Rountree Water Treatment Facility will be based upon the findings of the feasibility studies (Task 4) and the project designs (Task 7) and may allow for additional future improvements consistent with the findings of the feasibility studies.

Construction activities are outlined below.
11(a): Mobilization and Demobilization of equipment, materials, and machinery to construct the water system improvements.
11(b): Site preparation will include, as applicable, clearing and grubbing, implementation of construction BMPs, installation of fencing, and installation of environmental measures and/or work area flagging/fencing.

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7.61 Grant Agreement No. 4600015400

11(c): Install/construct the new water treatment facility, new foundation/concrete pad to house treatment systems, treatment system and appurtenances (such as, new filters, pipelines, hoses, etc.), electrical and engineering improvements, and any related improvements or controls necessary to integrate the new treatment system into the existing water system(s).
11(d): Site Restoration, as applicable, to establish erosion control and BMPs and restore site to preconstruction conditions.

Deliverables:
• Photographic Documentation of Progress
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7.62 Grant Agreement No. 4600015400

EXHIBIT B
BUDGET
PROPOSITION 1 ROUND 2 SANTA CRUZ IRWM IMPLEMENTATION GRANT

AGREEMENT BUDGET SUMMARY
PROJECTS Grant Amount
Required
Cost Share:

Non-State
Fund Source
Other Cost
Share
Total Cost
% Cost
Share
Required
Grant Administration $237,588 $0 $0 $237,588 N/A
1 Project 1: Fire Hardening of Critical
Water Supply Infrastructure
$305,000 $305,000 $0 $610,000 50%
2 Project 2: Equalization Tank
Replacement Project
$405,312 $405,312 $0 $810,624 50%
3 Project 3: Decision-Support Tool -
Understanding Climate Influenced
River Flooding
$179,375 $25,625 $0 $205,000 12.5%
4 Project 4: Recreational Vehicle
Sewage Dump Station
$85,000 $85,000 $0 $170,000 50%
5 Project 5: Atkinson Lane
Integrated Flood Management and
Watershed Restoration Project
$545,000 $0 $0 $545,000 0%
6 Project 6: Drinking Water
Treatment System & Secondary
Water Source Rountree Facility
$800,000 $0 $0 $800,000 0%
GRAND TOTAL $2,557,275 $820,937 $0 $3,378,212
Grant Administration
Implementing Agency: Regional Water Management Foundation (Grantee) BUDGET CATEGORY Grant Amount
Required
Cost Share:

Non-State
Fund Source
Other Cost Share Total Cost
(a) Project Administration $237,588 $0 $0 $237,588
TOTAL COSTS $237,588 $0 $0 $237,588
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PROJECT 1: Fire Hardening of Critical Water Supply Infrastructure Implementing Agency: San Lorenzo Valley Water District (SLVWD) BUDGET CATEGORY Grant Amount
Required
Cost Share:

Non-State
Fund Source*
Other Cost Share Total Cost
(a) Project Administration $0 $0 $0 $0
(b) Land Purchase / Easement $0 $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation $0 $10,000 $0 $10,000
(d) Construction / Implementation $305,000 $295,000 $0 $600,000 TOTAL COSTS $305,000 $305,000 $0 $610,000
NOTES:
*Required Cost Share fund source(s): San Lorenzo Valley Water District PROJECT 2: Equalization Tank Replacement Project
Implementing Agency: County of Santa Cruz, County Service Area 7 - Boulder Creek Sanitation BUDGET CATEGORY Grant Amount
Required
Cost Share:

Non-State
Fund Source*
Other Cost Share Total Cost
(a) Project Administration $0 $0 $0 $0
(b) Land Purchase / Easement $0 $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation $0 $0 $0 $0
(d) Construction / Implementation $405,312 $405,312 $0 $810,624 TOTAL COSTS $405,312 $405,312 $0 $810,624
NOTES:
*Required Cost Share fund source(s): Santa Cruz County Service Area 7 - Boulder Creek Sanitation DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.64 Grant Agreement No. 4600015400

PROJECT 3: Decision-Support Tool - Understanding Climate Influenced River Flooding Implementing Agency: City of Santa Cruz (The City)
BUDGET CATEGORY Grant Amount
Required
Cost Share:

Non-State
Fund Source*
Other Cost Share Total Cost
(a) Project Administration $0 $5,625 $0 $5,625
(b) Land Purchase / Easement $0 $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation $131,866 $20,000 $0 $151,866 (d) Construction / Implementation $47,509 N/A N/A $47,509 TOTAL COSTS $179,375 $25,625 $0 $205,000
NOTES:
*The project received a 75% cost share waiver. Required Cost Share fund source(s): City of Santa Cruz.

PROJECT 4: Recreational Vehicle Sewage Dump Station
Implementing Agency: City of Santa Cruz Public Works
BUDGET CATEGORY Grant Amount
Required
Cost Share:

Non-State
Fund Source*
Other Cost Share Total Cost
(a) Project Administration $0 $0 $0 $0
(b) Land Purchase / Easement $0 $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation $0 $0 $0 $0
(d) Construction / Implementation $85,000 $85,000 $0 $170,000 TOTAL COSTS $85,000 $85,000 $0 $170,000
NOTES:
*Required Cost Share fund source(s): City of Santa Cruz Public Works.

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7.65 Grant Agreement No. 4600015400

PROJECT 5: Atkinson Lane Integrated Flood Management and Watershed Restoration Project Implementing Agency: City of Watsonville
BUDGET CATEGORY Grant Amount
Required
Cost Share:

Non-State
Fund Source*
Other Cost Share Total Cost
(a) Project Administration $20,000 $0 $0 $20,000
(b) Land Purchase / Easement $0 $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation $140,000 $0 $0 $140,000
(d) Construction / Implementation $385,000 $0 $0 $385,000 TOTAL COSTS $545,000 $0 $0 $545,000
NOTES:
*The project received a 100% cost share waiver.

PROJECT 6: Drinking Water Treatment System & Secondary Water Source Rountree Facility Implementing Agency: Santa Cruz County General Services Department (County) BUDGET CATEGORY Grant Amount
Required
Cost Share:

Non-State
Fund Source*
Other Cost Share Total Cost
(a) Project Administration
$0 $0 $0 $0
(b) Land Purchase / Easement $0 $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation
$100,000
$0 $0
$100,000
(d) Construction / Implementation $700,000 $0 $0 $700,000 TOTAL COSTS $ 800,000 $0 $0 $ 800,000
NOTES:
*The project received a 100% cost share waiver.

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7.66 Grant Agreement No. 4600015400

EXHIBIT C

SCHEDULE
PROPOSITION 1 ROUND 2 SANTA CRUZ IRWM IMPLEMENTATION GRANT Grant Administration
BUDGET CATEGORY Start Date End Date
a Project Administration 07/01/2023 12/31/2027
PROJECT 1: Fire Hardening of Critical Water Supply Infrastructure BUDGET CATEGORY Start Date End Date
a Project Administration 08/01/2023 04/30/2027
b Land Purchase / Easement N/A N/A
c Planning / Design / Engineering / Environmental Documentation 08/01/2023 6/31/2024 d Construction / Implementation 02/01/2024 01/31/2027
Bidding and award of contract (Task 9. Contract Services) can occur concurrently with CEQA review (Task 5). The Contract Services task will not be paid for using grant funds or cost share. Construction (Tasks 10 and 11) will begin only after CEQA has been completed.

Task 7 (Design) extends into the Construction/ Implementation (Tasks 10 and 11) schedule because some of the 13 pump stations have site specific features that may require design features be incorporated into final designs concurrent with Construction (Task 11) since construction may be overlapping or occurring at multiple individual sites simultaneously.

PROJECT 2: Equalization Tank Replacement Project
BUDGET CATEGORY Start Date End Date
a Project Administration 10/01/2023 3/31/2026
b Land Purchase / Easement N/A N/A
c Planning / Design / Engineering / Environmental Documentation 01/01/2023 12/31/2024 d Construction / Implementation 01/01/2025 11/30/2025
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PROJECT 3: Decision-Support Tool - Understanding Climate Influenced River Flooding BUDGET CATEGORY Start Date End Date
a Project Administration 9/1/2023 6/30/2025
b Land Purchase / Easement N/A N/A
c Planning / Design / Engineering / Environmental Documentation 9/1/2023 8/31/2024 d Construction / Implementation 9/1/2024 3/31/2025
PROJECT 4: Recreational Vehicle Sewage Dump Station
BUDGET CATEGORY Start Date End Date
a Project Administration 9/1/2023 3/31/2026
b Land Purchase / Easement N/A N/A
c Planning / Design / Engineering / Environmental Documentation 9/1/2023 9/30/2024 d Construction / Implementation 3/1/2024 12/31/2025
There is overlap in the schedules for Categories (c) Planning/ Design / Engineering / Environmental Documentation and (d) Construction/ Implementation overlap because it is anticipated that some initial work on Task 9 (Contract Services) related to contractor/consultant procurement may start prior to the completion of the Tasks being performed under Category C.

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PROJECT 5: Atkinson Lane Integrated Flood Management and Watershed Restoration Project BUDGET CATEGORY Start Date End Date
a Project Administration 09/01/2023 09/30/2027
b Land Purchase / Easement N/A N/A
c Planning / Design / Engineering / Environmental Documentation 01/01/2024 05/31/2025 d Construction / Implementation 06/01/2025 06/30/2027
PROJECT 6: Drinking Water Treatment System & Secondary Water Source Rountree Facility BUDGET CATEGORY Start Date End Date
a Project Administration 7/1/2023 12/31/2026
b Land Purchase / Easement N/A N/A
c Planning / Design / Engineering / Environmental Documentation 7/1/2023 9/30/2025 d Construction / Implementation 7/1/2024 9/30/2026
There is overlap in the schedules for Categories (c) Planning/ Design / Engineering / Environmental Documentation and (d) Construction/ Implementation overlap because it is anticipated that some initial work on Task 9 (Contract Services) related to contractor/consultant procurement may start prior to the completion of the Tasks being performed under Category C.

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7.69 Grant Agreement No. 4600015400

EXHIBIT D

STANDARD CONDITIONS
D.1. ACCOUNTING AND DEPOSIT OF FUNDING DISBURSEMENT:

A. Separate Accounting of Funding Disbursements: Grantee shall account for the money disbursed pursuant to this Grant Agreement separately from all other Grantee funds. Grantee shall maintain audit and accounting procedures that are in accordance with generally accepted accounting principles and practices, consistently applied. Grantee shall keep complete and accurate records of all receipts and disbursements on expenditures of such funds. Grantee shall require its contractors or subcontractors to maintain books, records, and other documents pertinent to their work in accordance with generally accepted accounting principles and practices. Records are subject to inspection by State at any and all reasonable times.

B. Disposition of Money Disbursed: All money disbursed pursuant to this Grant Agreement shall be deposited in a non-interest bearing account, administered, and accounted for pursuant to the provisions of applicable law.

C. Remittance of Unexpended Funds: Grantee shall remit to State any unexpended funds that were disbursed to Grantee under this Grant Agreement and were not used to pay Eligible Project Costs within a period of sixty (60) calendar days from the final disbursement from State to Grantee of funds or, within thirty (30) calendar days of the expiration of the Grant Agreement, whichever comes first.

D.2. ACKNOWLEDGEMENT OF CREDIT AND SIGNAGE: Grantee shall include appropriate acknowledgement of credit to the State for its support when promoting the Project or using any data and/or information developed under this Grant Agreement. Signage shall be posted in a prominent location at Project site(s) (if applicable) or at the Grantee’s headquarters and shall include the Department of Water Resources color logo and the following disclosure statement: “Funding for this project has been provided in full or in part from the Water Quality, Supply, and Infrastructure Improvement Act of 2014 and through an agreement with the State Department of Water Resources.” The Grantee shall also include in each of its contracts for work under this Agreement a provision that incorporates the requirements stated within this Paragraph.

D.3. AMENDMENT: This Grant Agreement may be amended at any time by mutual agreement of the Parties, except insofar as any proposed amendments are in any way contrary to applicable law.

Requests by the Grantee for amendments must be in writing stating the amendment request and the reason for the request. Requests solely for a time extension must be submitted at least 90 days prior to the work completion date set forth in Paragraph 2. Any other request for an amendment must be submitted at least 180 days prior to the work completion date set forth in Paragraph 2. State shall have no obligation to agree to an amendment.

D.4. AMERICANS WITH DISABILITIES ACT: By signing this Grant Agreement, Grantee assures State that it complies with the Americans with Disabilities Act (ADA) of 1990, (42 U.S.C. § 12101 et seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA.

D.5. AUDITS: State reserves the right to conduct an audit at any time between the execution of this Grant Agreement and the completion of the Project, with the costs of such audit borne by State. After completion of the Project, State may require Grantee to conduct a final audit to State’s specifications, at Grantee’s expense, such audit to be conducted by and a report prepared by an independent Certified Public Accountant. Failure or refusal by Grantee to comply with this provision shall be considered a breach of this Grant Agreement, and State may elect to pursue any remedies provided in Paragraph 12 or take any other action it deems necessary to protect its interests. The Grantee agrees it shall return any audit disallowances to the State.

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7.70 Grant Agreement No. 4600015400

Pursuant to Government Code section 8546.7, the Grantee shall be subject to the examination and audit by the State for a period of three (3) years after final payment under this Grant Agreement with respect of all matters connected with this Grant Agreement, including but not limited to, the cost of administering this Grant Agreement. All records of Grantee or its contractor or subcontractors shall be preserved for this purpose for at least three (3) years after receipt of the final disbursement under this Agreement. If an audit reveals any impropriety, the Bureau of State Audits or the State Controller’s Office may conduct a full audit of any or all of the Grantee’s activities. Code, § 79708, subd. (b) D.6. BUDGET CONTINGENCY: If the Budget Act of the current year covered under this Grant Agreement does not appropriate sufficient funds for this program, this Grant Agreement shall be of no force and effect. This provision shall be construed as a condition precedent to the obligation of State to make any payments under this Grant Agreement. In this event, State shall have no liability to pay any funds whatsoever to Grantee or to furnish any other considerations under this Grant Agreement and Grantee shall not be obligated to perform any provisions of this Grant Agreement. Nothing in this Grant Agreement shall be construed to provide Grantee with a right of priority for payment over any other Grantee. If funding for any fiscal year after the current year covered by this Grant Agreement is reduced or deleted by the Budget Act, by Executive Order, or by order of the Department of Finance, the State shall have the option to either cancel this Grant Agreement with no liability occurring to State, or offer a Grant Agreement amendment to Grantee to reflect the reduced amount.

D.7. CALIFORNIA CONSERVATION CORPS: Grantee may use the services of the California Conservation Corps or other community conservation corps as defined in Public Resources Code section 14507.5.

D.8. CEQA: Activities funded under this Grant Agreement, regardless of funding source, must be in compliance with the California Environmental Quality Act (CEQA). (Pub. Resources Code, § 21000 et seq.) Any work that is subject to CEQA and funded under this Agreement shall not proceed until documents that satisfy the CEQA process are received by the State’s Project Manager and the State has completed its CEQA compliance. Work funded under this Agreement that is subject to a CEQA document shall not proceed until and unless approved by the Department of Water Resources. Such approval is fully discretionary and shall constitute a condition precedent to any work for which it is required. If CEQA compliance by the Grantee is not complete at the time the State signs this Agreement, once State has considered the environmental documents, it may decide to require changes, alterations, or other mitigation to the Project; or to not fund the Project. Should the State decide to not fund the Project, this Agreement shall be terminated in accordance with Paragraph 12, “Default Provisions.”
D.9. CHILD SUPPORT COMPLIANCE ACT: The Grantee acknowledges in accordance with Public Contract Code section 7110, that:

A. The Grantee recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Family Code section 5200 et seq.; and B. The Grantee, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.

D.10. CLAIMS DISPUTE: Any claim that the Grantee may have regarding performance of this Agreement including, but not limited to, claims for additional compensation or extension of time, shall be submitted to the DWR Project Representative, within thirty (30) days of the Grantee’s knowledge of the claim.

State and Grantee shall then attempt to negotiate a resolution of such claim and process an amendment to this Agreement to implement the terms of any such resolution.

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7.71 Grant Agreement No. 4600015400

D.11. COMPETITIVE BIDDING AND PROCUREMENTS: Grantee’s contracts with other entities for the acquisition of goods and services and construction of public works with funds provided by State under this Grant Agreement must be in writing and shall comply with all applicable laws and regulations regarding the securing of competitive bids and undertaking competitive negotiations. If the Grantee does not have a written policy to award contracts through a competitive bidding or sole source process, the Department of General Services’ State Contracting Manual rules must be followed and are available at: https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-ServicesResources-List-Folder/State-Contracting.

D.12. COMPUTER SOFTWARE: Grantee certifies that it has appropriate systems and controls in place to ensure that state funds will not be used in the performance of this Grant Agreement for the acquisition, operation, or maintenance of computer software in violation of copyright laws.

D.13. CONFLICT OF INTEREST: All participants are subject to State and Federal conflict of interest laws.

Failure to comply with these laws, including business and financial disclosure provisions, will result in the application being rejected and any subsequent contract being declared void. Other legal action may also be taken. Applicable statutes include, but are not limited to, Government Code section 1090 and Public Contract Code sections 10410 and 10411, for State conflict of interest requirements.

A. Current State Employees: No State officer or employee shall engage in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any State agency, unless the employment, activity, or enterprise is required as a condition of regular State employment. No State officer or employee shall contract on his or her own behalf as an independent contractor with any State agency to provide goods or services.

B. Former State Employees: For the two-year period from the date he or she left State employment, no former State officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to the contract while employed in any capacity by any State agency. For the twelvemonth period from the date he or she left State employment, no former State officer or employee may enter into a contract with any State agency if he or she was employed by that State agency in a policy-making position in the same general subject area as the proposed contract within the twelve-month period prior to his or her leaving State service.

C. Employees of the Grantee: Employees of the Grantee shall comply with all applicable provisions of law pertaining to conflicts of interest, including but not limited to any applicable conflict of interest provisions of the California Political Reform Act. (Gov. Code, § 87100 et seq.) D. Employees and Consultants to the Grantee: Individuals working on behalf of a Grantee may be required by the Department to file a Statement of Economic Interests (Fair Political Practices Commission Form 700) if it is determined that an individual is a consultant for Political Reform Act purposes.

D.14. DELIVERY OF INFORMATION, REPORTS, AND DATA: Grantee agrees to expeditiously provide throughout the term of this Grant Agreement, such reports, data, information, and certifications as may be reasonably required by State.

D.15. DISPOSITION OF EQUIPMENT: Grantee shall provide to State, not less than thirty (30) calendar days prior to submission of the final invoice, an itemized inventory of equipment purchased with funds provided by State. The inventory shall include all items with a current estimated fair market value of more than $5,000.00 per item. Within sixty (60) calendar days of receipt of such inventory State shall provide Grantee with a list of the items on the inventory that State will take title to. All other items shall become the property of Grantee. State shall arrange for delivery from Grantee of items that it takes title to. Cost of transportation, if any, shall be borne by State.

D.16. DRUG-FREE WORKPLACE CERTIFICATION: Certification of Compliance: By signing this Grant Agreement, Grantee, its contractors or subcontractors hereby certify, under penalty of perjury under DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.72 Grant Agreement No. 4600015400

the laws of State of California, compliance with the requirements of the Drug-Free Workplace Act of 1990 (Gov. Code, § 8350 et seq.) and have or will provide a drug-free workplace by taking the following actions:

A. Publish a statement notifying employees, contractors, and subcontractors that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees, contractors, or subcontractors for violations, as required by Government Code section 8355.

B. Establish a Drug-Free Awareness Program, as required by Government Code section 8355 to inform employees, contractors, or subcontractors about all of the following:
i. The dangers of drug abuse in the workplace,
ii. Grantee’s policy of maintaining a drug-free workplace, iii. Any available counseling, rehabilitation, and employee assistance programs, and iv. Penalties that may be imposed upon employees, contractors, and subcontractors for drug abuse violations.

C. Provide, as required by Government Code section 8355, that every employee, contractor, and/or subcontractor who works under this Grant Agreement:
i. Will receive a copy of Grantee’s drug-free policy statement, and ii. Will agree to abide by terms of Grantee’s condition of employment, contract or subcontract.

D.17. EASEMENTS: Where the Grantee acquires property in fee title or funds improvements to real property using State funds provided through this Grant Agreement, an appropriate easement or other title restriction providing for floodplain preservation and agricultural and/or wildlife habitat conservation for the subject property in perpetuity, approved by the State, shall be conveyed to a regulatory or trustee agency or conservation group acceptable to the State. The easement or other title restriction must be in first position ahead of any recorded mortgage or lien on the property unless this requirement is waived by the State.

Where the Grantee acquires an easement under this Agreement, the Grantee agrees to monitor and enforce the terms of the easement, unless the easement is subsequently transferred to another land management or conservation organization or entity with State permission, at which time monitoring and enforcement responsibilities will transfer to the new easement owner.

Failure to provide an easement or other title restriction acceptable to the State may result in termination of this Agreement.

D.18. FINAL INSPECTIONS AND CERTIFICATION OF REGISTERED PROFESSIONAL: Upon completion of the Project, Grantee shall provide for a final inspection and certification by a California Registered Professional (i.e., Professional Civil Engineer, Engineering Geologist), that the Project has been completed in accordance with submitted final plans and specifications and any modifications thereto and in accordance with this Grant Agreement.

D.19. GRANTEE'S RESPONSIBILITIES: Grantee and its representatives shall:

A. Faithfully and expeditiously perform or cause to be performed all project work as described in Exhibit A and in accordance with Exhibits B and C.

B. Accept and agree to comply with all terms, provisions, conditions, and written commitments of this Grant Agreement, including all incorporated documents, and to fulfill all assurances, declarations, representations, and statements made by Grantee in the application, documents, amendments, and communications filed in support of its request for funding.

C. Comply with all applicable California, federal, and local laws and regulations.

D. Implement the Project in accordance with applicable provisions of the law.

E. Fulfill its obligations under the Grant Agreement and be responsible for the performance of the Project.

F. Obtain any and all permits, licenses, and approvals required for performing any work under this Grant Agreement, including those necessary to perform design, construction, or operation and maintenance of the Project. Grantee shall provide copies of permits and approvals to State.

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7.73 Grant Agreement No. 4600015400

G. Be solely responsible for design, construction, and operation and maintenance of projects within the work plan. Review or approval of plans, specifications, bid documents, or other construction documents by State is solely for the purpose of proper administration of funds by State and shall not be deemed to relieve or restrict responsibilities of Grantee under this Agreement.

H. Be solely responsible for all work and for persons or entities engaged in work performed pursuant to this Agreement, including, but not limited to, contractors, subcontractors, suppliers, and providers of services. The Grantee shall be responsible for any and all disputes arising out of its contracts for work on the Project, including but not limited to payment disputes with contractors and subcontractors. The State will not mediate disputes between the Grantee and any other entity concerning responsibility for performance of work.

D.20. GOVERNING LAW: This Grant Agreement is governed by and shall be interpreted in accordance with the laws of the State of California.

D.21. INCOME RESTRICTIONS: The Grantee agrees that any refunds, rebates, credits, or other amounts (including any interest thereon) accruing to or received by the Grantee under this Agreement shall be paid by the Grantee to the State, to the extent that they are properly allocable to costs for which the Grantee has been reimbursed by the State under this Agreement. The Grantee shall also include in each of its contracts for work under this Agreement a provision that incorporates the requirements stated within this Paragraph.

D.22. INDEMNIFICATION: Grantee shall indemnify and hold and save the State, its officers, agents, and employees, free and harmless from any and all liabilities for any claims and damages (including inverse condemnation) that may arise out of the Project and this Agreement, including, but not limited to any claims or damages arising from planning, design, construction, maintenance and/or operation of levee rehabilitation measures for this Project and any breach of this Agreement. Grantee shall require its contractors or subcontractors to name the State, its officers, agents and employees as additional insureds on their liability insurance for activities undertaken pursuant to this Agreement.

D.23. INDEPENDENT CAPACITY: Grantee, and the agents and employees of Grantees, in the performance of the Grant Agreement, shall act in an independent capacity and not as officers, employees, or agents of the State.

D.24. INSPECTION OF BOOKS, RECORDS, AND REPORTS: During regular office hours, each of the parties hereto and their duly authorized representatives shall have the right to inspect and to make copies of any books, records, or reports of either party pertaining to this Grant Agreement or matters related hereto. Each of the parties hereto shall maintain and shall make available at all times for such inspection accurate records of all its costs, disbursements, and receipts with respect to its activities under this Grant Agreement. Failure or refusal by Grantee to comply with this provision shall be considered a breach of this Grant Agreement, and State may withhold disbursements to Grantee or take any other action it deems necessary to protect its interests.

D.25. INSPECTIONS OF PROJECT BY STATE: State shall have the right to inspect the work being performed at any and all reasonable times during the term of the Grant Agreement. This right shall extend to any subcontracts, and Grantee shall include provisions ensuring such access in all its contracts or subcontracts entered into pursuant to its Grant Agreement with State.

D.26. LABOR CODE COMPLIANCE: The Grantee agrees to be bound by all the provisions of the Labor Code regarding prevailing wages and shall monitor all contracts subject to reimbursement from this Agreement to assure that the prevailing wage provisions of the Labor Code are being met. Current Department of Industrial Relations (DIR) requirements may be found at: http://www.dir.ca.gov/ lcp.asp.

For more information, please refer to DIR’s Public Works Manual at: https://www.dir.ca.gov/ dlse/PWManualCombined.pdf. The Grantee affirms that it is aware of the provisions of section 3700 of the Labor Code, which requires every employer to be insured against liability for workers’ DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

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compensation or to undertake self-insurance, and the Grantee affirms that it will comply with such provisions before commencing the performance of the work under this Agreement and will make its contractors and subcontractors aware of this provision.

D.27. MODIFICATION OF OVERALL WORK PLAN: At the request of the Grantee, the State may at its sole discretion approve non-material changes to the portions of Exhibits A, B, and C which concern the budget and schedule without formally amending this Grant Agreement. Non-material changes with respect to the budget are changes that only result in reallocation of the budget and will not result in an increase in the amount of the State Grant Agreement. Non-material changes with respect to the Project schedule are changes that will not extend the term of this Grant Agreement. Requests for nonmaterial changes to the budget and schedule must be submitted by the Grantee to the State in writing and are not effective unless and until specifically approved by the State’s Program Manager in writing.

D.28. NONDISCRIMINATION: During the performance of this Grant Agreement, Grantee and its contractors or subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex (gender), sexual orientation, gender identity, race, color, ancestry, religion, creed, national origin (including language use restriction), pregnancy, physical disability (including HIV and AIDS), mental disability, medical condition (cancer/genetic characteristics), age (over 40), marital/domestic partner status, and denial of medical and family care leave or pregnancy disability leave. Grantee and its contractors or subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Grantee and its contractors or subcontractors shall comply with the provisions of the California Fair Employment and Housing Act (Gov. Code, § 12990.) and the applicable regulations promulgated there under (Cal. Code Regs., tit. 2, § 11000 et seq.). The applicable regulations of the Fair Employment and Housing are incorporated into this Agreement by reference. Grantee and its contractors or subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other Agreement.

Grantee shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Grant Agreement.

D.29. OPINIONS AND DETERMINATIONS: Where the terms of this Grant Agreement provide for action to be based upon, judgment, approval, review, or determination of either party hereto, such terms are not intended to be and shall never be construed as permitting such opinion, judgment, approval, review, or determination to be arbitrary, capricious, or unreasonable.

D.30. PERFORMANCE BOND: Where contractors are used, the Grantee or Local Project Sponsor shall not authorize construction to begin until each contractor has furnished a performance bond in favor of the Grantee or the Local Project Sponsor in the following amounts: faithful performance (100%) of contract value, and labor and materials (100%) of contract value. This requirement shall not apply to any contract for less than $25,000.00. Any bond issued pursuant to this paragraph must be issued by a California-admitted surety. (Pub. Contract Code, § 7103; Code Civ. Proc., § 995.311.) D.31. PRIORITY HIRING CONSIDERATIONS: If this Grant Agreement includes services in excess of $200,000, the Grantee shall give priority consideration in filling vacancies in positions funded by the Grant Agreement to qualified recipients of aid under Welfare and Institutions Code section 11200 in accordance with Public Contract Code section 10353.

D.32. PROHIBITION AGAINST DISPOSAL OF PROJECT WITHOUT STATE PERMISSION: The Grantee shall not sell, abandon, lease, transfer, exchange, mortgage, hypothecate, or encumber in any manner whatsoever all or any portion of any real or other property necessarily connected or used in conjunction with the Project, or with Grantee’s service of water, without prior permission of State.

Grantee shall not take any action, including but not limited to actions relating to user fees, charges, and assessments that could adversely affect the ability of Grantee meet its obligations under this DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

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Grant Agreement, without prior written permission of State. State may require that the proceeds from the disposition of any real or personal property be remitted to State.

D.33. PROJECT ACCESS: The Grantee shall ensure that the State, the Governor of the State, or any authorized representative of the foregoing, will have safe and suitable access to the Project site at all reasonable times during Project construction and thereafter for the term of this Agreement.

D.34. REMAINING BALANCE: In the event the Grantee does not submit invoices requesting all of the funds encumbered under this Grant Agreement, any remaining funds revert to the State. The State will notify the Grantee stating that the Project file is closed and any remaining balance will be disencumbered and unavailable for further use under this Grant Agreement.

D.35. REMEDIES NOT EXCLUSIVE: The use by either party of any remedy specified herein for the enforcement of this Grant Agreement is not exclusive and shall not deprive the party using such remedy of, or limit the application of, any other remedy provided by law.

D.36. RETENTION: The State shall withhold ten percent (10%) of the funds, for each project, until the project is complete, and a Final Project Report is approved and accepted by DWR. If a project has multiple components (within a project), at the State's discretion and upon a written request by the Grantee, any retained amount attributable to a single component may be released when that component is complete and the Final Component Completion Report is approved. Upon approval of the Final Project Report and/or Final Component Completion Report, any retained amounts due to the Grantee will be promptly disbursed to the Grantee, without interest.

D.37. RIGHTS IN DATA: Grantee agrees that all data, plans, drawings, specifications, reports, computer programs, operating manuals, notes and other written or graphic work produced in the performance of this Grant Agreement shall be made available to the State and shall be in the public domain to the extent to which release of such materials is required under the California Public Records Act. (Gov.

Code, § 6250 et seq.) Grantee may disclose, disseminate and use in whole or in part, any final form data and information received, collected and developed under this Grant Agreement, subject to appropriate acknowledgement of credit to State for financial support. Grantee shall not utilize the materials for any profit-making venture or sell or grant rights to a third party who intends to do so. The State shall have the right to use any data described in this paragraph for any public purpose.

D.38. SEVERABILITY: Should any portion of this Grant Agreement be determined to be void or unenforceable, such shall be severed from the whole and the Grant Agreement shall continue as modified.

D.39. SUSPENSION OF PAYMENTS: This Grant Agreement may be subject to suspension of payments or termination, or both if the State determines that:

A. Grantee, its contractors, or subcontractors have made a false certification, or B. Grantee, its contractors, or subcontractors violates the certification by failing to carry out the requirements noted in this Grant Agreement.

D.40. SUCCESSORS AND ASSIGNS: This Grant Agreement and all of its provisions shall apply to and bind the successors and assigns of the parties. No assignment or transfer of this Grant Agreement or any part thereof, rights hereunder, or interest herein by the Grantee shall be valid unless and until it is approved by State and made subject to such reasonable terms and conditions as State may impose.

D.41. TERMINATION BY GRANTEE: Subject to State approval which may be reasonably withheld, Grantee may terminate this Agreement and be relieved of contractual obligations. In doing so, Grantee must provide a reason(s) for termination. Grantee must submit all progress reports summarizing accomplishments up until termination date.

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D.42. TERMINATION FOR CAUSE: Subject to the right to cure under Paragraph 12, “Default Provisions,” the State may terminate this Grant Agreement and be relieved of any payments should Grantee fail to perform the requirements of this Grant Agreement at the time and in the manner herein, provided including but not limited to reasons of default under Paragraph 12, “Default Provisions.” D.43. TERMINATION WITHOUT CAUSE: The State may terminate this Agreement without cause on 30 days’ advance written notice. The Grantee shall be reimbursed for all reasonable expenses incurred up to the date of termination.

D.44. THIRD PARTY BENEFICIARIES: The parties to this Agreement do not intend to create rights in, or grant remedies to, any third party as a beneficiary of this Agreement, or any duty, covenant, obligation or understanding established herein.

D.45. TIMELINESS: Time is of the essence in this Grant Agreement.

D.46. TRAVEL – DAC, EDA, TRIBES PROJECT: Travel is only an eligible reimbursable expense for projects providing at least 75% of benefits to DACs, EDAs, and/or Tribes (based on population or geographic area). Only ground transportation and lodging are eligible for grant reimbursement. Per diem costs will not be eligible for grant reimbursement. Any reimbursement for necessary travel shall be at rates not to exceed those set by the California Department of Human Resources. These rates may be found at: http://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx. Reimbursement will be at the State travel amounts that are current as of the date costs are incurred. No travel outside of the IRWM region shall be reimbursed unless prior written authorization is obtained from the State.

D.47. UNION ORGANIZING: Grantee, by signing this Grant Agreement, hereby acknowledges the applicability of Government Code sections 16645 through 16649 to this Grant Agreement.

Furthermore, Grantee, by signing this Grant Agreement, hereby certifies that:

A. No State funds disbursed by this Grant Agreement will be used to assist, promote, or deter union organizing.

B. Grantee shall account for State funds disbursed for a specific expenditure by this Grant Agreement to show those funds were allocated to that expenditure.

C. Grantee shall, where State funds are not designated as described in (b) above, allocate, on a pro rata basis, all disbursements that support the program.

D. If Grantee makes expenditures to assist, promote, or deter union organizing, Grantee will maintain records sufficient to show that no State funds were used for those expenditures and that Grantee shall provide those records to the Attorney General upon request.

D.48. VENUE: The State and the Grantee hereby agree that any action arising out of this Agreement shall be filed and maintained in the Superior Court in and for the County of Sacramento, California, or in the United States District Court in and for the Eastern District of California. The Grantee hereby waives any existing sovereign immunity for the purposes of this Agreement.

D.49. WAIVER OF RIGHTS: None of the provisions of this Grant Agreement shall be deemed waived unless expressly waived in writing. It is the intention of the parties here to that from time to time either party may waive any of its rights under this Grant Agreement unless contrary to law. Any waiver by either party of rights arising in connection with the Grant Agreement shall not be deemed to be a waiver with respect to any other rights or matters, and such provisions shall continue in full force and effect.

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EXHIBIT E

AUTHORIZING RESOLUTION
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EXHIBIT F

REPORT FORMATS AND REQUIREMENTS
The following reporting formats should be utilized. Please obtain State approval prior to submitting a report in an alternative format.

PROGRESS REPORTS
Progress reports shall generally use the following format. This format may be modified as necessary to effectively communicate information. For each project, discuss the following at the task level, as organized in Exhibit A:
• Percent complete (by work)
• Discussion of work accomplished during the reporting period. • Milestones or deliverables completed/submitted during the reporting period. • Meetings held or attended.
• Scheduling concerns and issues encountered that may delay completion of the task.

For each project, discuss the following at the project level, as organized in Exhibit A:
• Work anticipated for the next reporting period.
• Photo documentation, as appropriate.
• Budget projections for grant share for the next two quarters • Any schedule or budget modifications approved by DWR during the reporting period.

PROJECT COMPLETION REPORT
The Project Completion Report (or a Component Completion Report, if a Project has multiple Components) shall generally use the following format provided below for each project after completion.

Executive Summary
The Executive Summary should include a brief summary of project information and include the following items:
• Brief description of work proposed to be done in the original Grant application. • List any official amendments to this Grant Agreement, with a short description of the amendment.

Reports and/or Products
The following items should be provided, unless already submitted as a deliverable:
• A copy of any final technical report or study, produced for or utilized in this Project as described in the Exhibit A
• Electronic copies of any data collected, not previously submitted • Discussion of problems that occurred during the work and how those problems were resolved • Final project schedule showing actual progress versus planned progress as shown in Exhibit C Additional information that may be applicable for implementation projects includes the following:
• Record drawings
• Final geodetic survey information
• Project photos
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Cost & Disposition of Funds
A list showing:
• Summary of Project costs including the following items:
o Accounting of the cost of project expenditure;
o Include all internal and external costs not previously disclosed (i.e., additional cost share); and o A discussion of factors that positively or negatively affected the project cost and any deviation from the original Project cost estimate.

Additional Information
• Benefits derived from the Project, with quantification of such benefits provided. • If applicable, Certification from a California Registered Professional (Civil Engineer or Geologist, as appropriate), consistent with Exhibit D, that the project was conducted in accordance with the approved Work Plan in Exhibit A and any approved amendments thereto. • Submittal schedule for the Post-Performance Report.

GRANT COMPLETION REPORT
The Grant Completion Report shall generally use the following format. This format may be modified as necessary to effectively communicate information on the various projects funded by this Grant Agreement, and includes the following:
• Executive Summary: consisting of a maximum of ten (10) pages summarizing information for the grant as well as the individual projects.
• Brief discussion of: each project completed and how they achieved IRWM Plan objectives and/or Regional goals and whether the level, type, or magnitude of benefits of the project are comparable to the original project proposal; any remaining work to be completed and mechanism for their implementation; the benefits to DAC and/or EDA as part of this Grant Agreement if a DAC or EDA Cost Share Waiver was approved for a project; and a summary of final funds disbursement for each project.

Additional Information: Summary of the submittal schedule for the Post-Performance Reports applicable for the projects in this Grant Agreement.

POST-PERFORMANCE REPORT
The Post-Performance Report (PPR) should be concise and focus on how each project is performing compared to its expected performance; whether the project is being operated and maintained and providing intended benefits as proposed. A PPR template may be provided by the assigned DWR Grant Manager upon request. The PPR should follow the general format of the template and provide requested information as applicable. The following information, at a minimum, shall be provided:

Reports and/or products
• Header including the following:
o Grantee Name
o Implementing Agency (if different from Grantee)
o Grant Agreement Number
o Project Name
o Funding grant source (i.e., 2022 Proposition 1 IRWM Implementation Grant) o Report number
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• Post-Performance Report schedule
• Time period of the annual report (e.g., January 2024 through December 2024) • Project Description Summary
• Discussion of the project benefits
• An assessment of any differences between the expected versus actual project benefits as stated in the original application. Where applicable, the reporting should include quantitative metrics (e.g., new acrefeet of water produced that year, etc.). • Summary of any additional costs and/or benefits deriving from the project since its completion, if applicable.
• Any additional information relevant to or generated by the continued operation of the project.

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EXHIBIT G

REQUIREMENTS FOR DATA SUBMITTAL
Surface and Groundwater Quality Data:

Groundwater quality and ambient surface water quality monitoring data that include chemical, physical, or biological data shall be submitted to the State as described below, with a narrative description of data submittal activities included in project reports.

Surface water quality monitoring data shall be prepared for submission to the California Environmental Data Exchange Network (CEDEN). The CEDEN data templates are available on the CEDEN website.

Inclusion of additional data elements described on the data templates is desirable. Data ready for submission should be uploaded to your CEDEN Regional Data Center via the CEDEN website. CEDEN website: http://www.ceden.org.

If a project’s Work Plan contains a groundwater ambient monitoring element, groundwater quality monitoring data shall be submitted to the State for inclusion in the State Water Resources Control Board’s Groundwater Ambient Monitoring and Assessment (GAMA) Program Information on the GAMA Program can be obtained at: https://www.waterboards.ca.gov/water_issues/programs/gama/. If further information is required, the Grantee can contact the State Water Resources Control Board (SWRCB) GAMA Program.

A listing of SWRCB staff involved in the GAMA program can be found at:
https://www.waterboards.ca.gov/water_issues/programs/gama/contact.shtml.

Groundwater Level Data
For each project that collects groundwater level data, the Grantee will need to submit this data to DWR’s Water Data Library (WDL), with a narrative description of data submittal activities included in project reports, as described in Exhibit F, “Report Formats and Requirements.” Information regarding the WDL and in what format to submit data in can be found at: http://www.water.ca.gov/waterdatalibrary/.

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EXHIBIT H

STATE AUDIT DOCUMENT REQUIREMENTS AND COST SHARE GUIDELINES FOR THE GRANTEE The following provides a list of documents typically required by State Auditors and general guidelines for the Grantee. List of documents pertains to both State funding and the Grantee’s Local Cost Share and details the documents/records that State Auditors would need to review in the event of this Grant Agreement is audited.

The Grantee should ensure that such records are maintained for each funded project.

State Audit Document Requirements
Internal Controls

1. Organization chart (e.g., Agency’s overall organization chart and organization chart for the State funded Program/Project).

2. Written internal procedures and flowcharts for the following:
a) Receipts and deposits
b) Disbursements
c) State reimbursement requests
d) Expenditure tracking of State funds
e) Guidelines, policy, and procedures on State funded Program/Project

3. Audit reports of the Agency internal control structure and/or financial statements within the last two years.

4. Prior audit reports on the State funded Program/Project.

State Funding:

1. Original Grant Agreement, any amendment(s) and budget modification documents.

2. A listing of all bond-funded grants, loans, or subventions received from the State.

3. A listing of all other funding sources for each Program/Project.

Contracts:

1. All subcontractor and consultant contracts and related or partners’ documents, if applicable.

2. Contracts between the Agency and member agencies as related to the State funded Program/Project.

Invoices:

1. Invoices from vendors and subcontractors for expenditures submitted to the State for payments under the Grant Agreement.

2. Documentation linking subcontractor invoices to State reimbursement, requests and related Grant Agreement budget line items.

3. Reimbursement requests submitted to the State for the Grant Agreement.

Cash Documents:

1. Receipts (copies of warrants) showing payments received from the State.

2. Deposit slips (or bank statements) showing deposit of the payments received from the State.

3. Cancelled checks or disbursement documents showing payments made to vendors, subcontractors, consultants, and/or agents under the grants or loans.

4. Bank statements showing the deposit of the receipts.

Accounting Records:

1. Ledgers showing entries for funding receipts and cash disbursements.

2. Ledgers showing receipts and cash disbursement entries of other funding sources.

3. Bridging documents that tie the general ledger to requests for Grant Agreement reimbursement.

Administration Costs:

1. Supporting documents showing the calculation of administration costs.

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Personnel:

1. List of all contractors and Agency staff that worked on the State funded Program/Project.

2. Payroll records including timesheets for contractor staff and the Agency personnel who provided services charged to the program
Project Files:

1. All supporting documentation maintained in the project files.

2. All Grant Agreement related correspondence.

Cost Share Guidelines
Cost Share consists of non-State funds, including in-kind services. In-kind services are defined as work performed (i.e., dollar value of non-cash contributions) by the Grantee (and potentially other parties) directly related to the execution of the funded project. Examples include volunteer services, equipment use, and use of facilities. The cost if in-kind service can be counted as cost share in-lieu of actual funds (or revenue) provided by the Grantee. Other cost share and in-kind service eligibility conditions may apply. Provided below is guidance for documenting cost share with and without in-kind services.

1. Although tracked separately, in-kind services shall be documented and, to the extent feasible, supported by the same methods used by the Grantee for its own employees. Such documentation should include the following:
a. Detailed description of the contributed item(s) or service(s) b. Purpose for which the contribution was made (tied to project work plan) c. Name of contributing organization and date of contribution d. Real or approximate value of contribution. Who valued the contribution and how was the value determined? (e.g., actual, appraisal, fair market, etc.). Justification of rate. (See item #2, below) e. Person’s name and the function of the contributing person f. Number of hours contributed
g. If multiple sources exist, these should be summarized on a table with summed charges h. Source of contribution if it was provided by, obtained with, or supported by government funds

2. Rates for volunteer or in-kind services shall be consistent with those paid for similar work in the Grantee’s organization. For example, volunteer service of clearing vegetation performed by an attorney shall be valued at fair market value for this service, not the rate for professional legal services. In those instances, in which the required skills are not found in the recipient organization, rates shall be consistent with those paid for similar work in the labor market. Paid fringe benefits that are reasonable, allowable, and allocable may be included in the valuation.

3. Cost share contribution (including in-kind services) shall be for costs and services directly attributed to activities included in the Grant Agreement. These services, furnished by professional and technical personnel, consultants, and other skilled labor may be counted as in-kind if the activities are an integral and necessary part of the project funded by the Grant Agreement.

4. Cash contributions made to a project shall be documented as revenue and in-kind services as expenditures. These costs should be tracked separately in the Grantee’s accounting system.

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EXHIBIT I

LOCAL PROJECT SPONSORS AND PROJECT LOCATIONS
The Grantee has assigned, for each project, a Local Project Sponsor (LPS) according to the roles of the participating agencies identified in the IRWM Plan. LPSs may act on behalf of the Grantee for the purposes of individual project management, oversight, compliance, and operations and maintenance. LPSs are identified for each sponsored Project below:

Local Project Sponsor Agency Designation
Sponsored Project: Project 1: Fire Hardening of Critical Water Supply Infrastructure Sponsor Agency: San Lorenzo Valley Water District
Agency Address: 13060 CA-9, Boulder Creek, CA 95006
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Local Project Sponsor Agency Designation
Sponsored Project: Project 2: Equalization Tank Replacement Project Sponsor Agency: County of Santa Cruz, County Service Area 7 - Boulder Creek Sanitation Agency Address: 701 Ocean Street, Room 410
Project Location: Boulder Creek, California (37.151639,-122.162167)

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Local Project Sponsor Agency Designation
Sponsored Project: Project 3: Decision-Support Tool - Understanding Climate Influenced River Flooding Sponsor Agency: City of Santa Cruz
Agency Address: 809 Center St, Santa Cruz, CA 95060
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Local Project Sponsor Agency Designation
Sponsored Project: Project 4: Recreational Vehicle Sewage Dump Station Sponsor Agency: City of Santa Cruz Public Works
Agency Address: 809 Center St, Santa Cruz, CA 95060
Project Location: Santa Cruz, California (36.9742891,-122.0296430)

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Local Project Sponsor Agency Designation
Sponsored Project: Project 5: Atkinson Lane Integrated Flood Management and Watershed Restoration Project Sponsor Agency: City of Watsonville
Agency Address: 250 Main Street Watsonville, CA 95076
Project Location: Atkinson Lane, Watsonville, California (36.932161, -121.764346) DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

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Local Project Sponsor Agency Designation
Sponsored Project: Project 6: Drinking Water Treatment System & Secondary Water Source Rountree Facility Sponsor Agency: Santa Cruz County General Services Department (County) Agency Address: 701 Ocean Street, Room 330, Santa Cruz, CA 95060-4073 Project Location: 90 Rountree Lane, Watsonville, California (36.913919, -121.810569) DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

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EXHIBIT J

APPRAISAL SPECIFICATIONS
For implementation projects that include Land Acquisition Only:

For property acquisitions funded by this Grant Agreement, the Grantee shall submit an appraisal for review and approval by the Department of General Services or DWR’s Real Estate Branch prior to reimbursement or depositing State funds into an escrow account. This information should be submitted at least 90 days prior to a reimbursement request to account for review time. All appraisal reports, regardless of report format, shall include all applicable Appraisal Specifications below. Appraisals for a total compensation of $150,000 or more shall be reported as a Self-Contained Appraisal Report. Appraisals for a total compensation of less than $150,000 may be reported as a Summary Appraisal Report, which includes all information necessary to arrive at the appraiser’s conclusion. Appraisal Specifications 14, 16, 21, 23-25, and 28 shall be a narrative analysis regardless of the reporting format.

1. Title page with sufficient identification of appraisal assignment.

2. Letter of transmittal summarizing important assumptions and conclusions, value estimate, date of value and date of report.

3. Table of contents.

4. Assumptions and Limiting Conditions, Extraordinary Assumptions, and Hypothetical Conditions as needed.

5. Description of the scope of work, including the extent of data collection and limitations, if any, in obtaining relevant data.

6. Definition of Fair Market Value, as defined by California Code of Civil Procedure, § 1263.320.

7. Photographs of subject property and comparable data, including significant physical features and the interior of structural improvements, if applicable.

8. Copies of Tax Assessor’s plat map with the subject marked along with all contiguous assessor’s parcels that depict the ownership.

9. A legal description of the subject property, if available.

10. For large, remote or inaccessible parcels, provide aerial photographs or topographical maps depicting the subject boundaries.

11. Three (3) year subject property history, including sales, listings, leases, options, zoning, applications for permits, or other documents or facts that might indicate or affect use or value.

12. Discussion of any current Agreement of Sale, option, or listing of subject property. This issue required increased diligence since state agencies often utilize non-profit organizations to quickly acquire sensitive habitat parcels using Option Agreements. However, due to confidentiality clauses, the terms of the Option are often not disclosed to the State. If the appraiser discovers evidence of an Option or the possible existence of an Option, and the terms cannot be disclosed due to a confidentiality clause, then the appraiser is to cease work and contact the client.

13. Regional, area, and neighborhood analyses. This information may be presented in a summary format.

14. Market conditions and trends including identification of the relevant market area, a discussion of supply and demand within the relevant market area, and a discussion of the relevant market factors impacting demand for site acquisition and leasing within the relevant market area. This information may be presented in a summary format.

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7.91 Grant Agreement No. 4600015400

15. Discussion of subject land/site characteristics (size, topography, current use, elevations, zoning and land use issues, development entitlements, General Plan designation, utilities, offsite improvements, access, land features such as levees and creeks, offsite improvements, easements and encumbrances, covenants, conditions and restrictions, flood and earthquake information, toxic hazards, water rights, mineral rights, toxic hazards, taxes and assessments, etc.).

16. Description of subject improvements including all structures, square footage, physical age, type of construction, quality of construction, condition of improvements and/or identification of any permanent plantings. Discussion of construction cost methodology, costs included and excluded, accrued depreciation from all causes, remaining economic life, items of deferred maintenance and cost to cure, and incurable items. Construction cost data shall include cost data source, date of estimate or date of publication of cost manual, section and page reference of cost manual, copies of cost estimate if provided from another source, replacement or reproduction cost method used, and supporting calculations including worksheets or spreadsheets.

17. Subject property leasing and operating cost history, including all items of income and expense.

18. Analysis and conclusion of the larger parcel for partial taking appraisals. For partial taking appraisals, Appraisal Specifications generally apply to the larger parcel rather than an ownership where the larger parcel is not the entire ownership.

19. Include a copy of a recent preliminary title report (within the past year) as an appraisal exhibit.

Discuss the title exceptions and analyze the effect of title exceptions on fair market value.

20. For appraisals of partial takings or easements, a detailed description of the taking or easement area including surface features and topography, easements, encumbrances or improvements including levees within the subject partial take or easement, and whether the take area is characteristic of the larger parcel. Any characteristics of the taking area, including existing pre-project levees that render the take area different from the larger parcel shall be addressed in the valuation.

21. Opinion of highest and best use for the subject property, based on an in-depth analysis supporting the concluded use which includes the detail required by the complexity of the analysis. Such support typically requires a discussion of the four criteria of tests utilized to determine the highest and best use of a property. If alternative feasible uses exist, explain and support market, development, cash flow, and risk factors leading to an ultimate highest and best use decision.

22. All approaches to market value applicable to the property type and in the subject market. Explain and support the exclusion of any usual approaches to value.

23. Map(s) showing all comparable properties in relation to the subject property.

24. Photographs and plat maps of comparable properties.

25. In-depth discussion of comparable properties, similarities and differences compared to the subject property, adjustments to the comparable data, and discussion of the reliability and credibility of the data as it relates to the indicated subject property value. Improved comparable sales which are used to compare to vacant land subject properties shall include an allocation between land and improvements, using methodology similar to methodology used in item 16 above to estimate improvement value when possible, with an explanation of the methodology used.

26. Comparable data sheets.
a. For sales, include information on grantor/Grantee, sale/recordation dates, listed or asking price as of the date of sale, highest and best use, financing, conditions of sale, buyer motivation, sufficient location information (street address, post mile, and/or distance from local landmarks such as bridges, road intersections, structures, etc.), land/site characteristics, improvements, source of any allocation of sale price between land and improvements, and confirming source.

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7.92 Grant Agreement No. 4600015400

b. For listings, also include marketing time from list date to effective date of the appraisal, original list price, changes in list price, broker feedback, if available. c. For leases, include significant information such as lessor/lessee, lease date and term, type of lease, rent and escalation, expenses, size of space leased, tenant improvement allowance, concessions, use restrictions, options, and confirming source. When comparing improved sales to a vacant land subject, the contributory value of the improvements shall be segregated from the land value.

27. For appraisals of easements, a before and after analysis of the burden of the easement on the fee, with attention to how the easement affects highest and best use in the after condition. An Easement Valuation Matrix or generalized easement valuation references may be used ONLY as a reference for a secondary basis of value.

28. For partial taking and easement appraisals, valuation of the remainder in the after condition and analysis and identification of any change in highest and best use or other characteristics in the after condition, to establish severance damages to the remainder in the after condition, and a discussion of special and general benefits, and cost to cure damages or construction contract work.

29. There are occasions where properties involve water rights, minerals, or salable timber that require separate valuations. If an appraisal assignment includes water rights, minerals, or merchantable timber that requires separate valuation, the valuation of the water rights, minerals, or merchantable timber shall be completed by a credentialed subject matter specialist.

30. For partial taking and easement appraisals, presentation of the valuation in California partial taking acquisition required format.

31. Implied dedication statement.

32. Reconciliation and final value estimate. Include analysis and comparison of the comparable sales to the subject, and explain and support conclusions reached.

33. Discussion of any departures taken in the development of the appraisal.

34. Signed Certification consistent with the language found in Uniform Standards of Professional Appraisal Practice.

35. If applicable, in addition to the above, appraisals of telecommunication sites shall also provide:
a. A discussion of market conditions and trends including identification of the relevant market, a discussion of supply and demand within the relevant market area and a discussion of the relevant market factors impacting demand for site acquisition and leasing within the relevant market area. b. An analysis of other leases comparable to subject property. Factors to be discussed in the analysis include the latitude, longitude, type of tower, tower height, number of rack spaces, number of racks occupied, placement of racks, power source and adequacy, back-up power, vault and site improvements description and location on site, other utilities; access, and road maintenance costs.

DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.93 Grant Agreement No. 4600015400