Santa Cruz City Council
June 9, 2026

18.02 Collective Wellbeing and Reputation. Tenant acknowledges and understands that maintaining the positive reputation of all businesses on the Municipal Wharf is essential to the success of the entire Wharf as a tourist destination and center of commerce. By executing this Lease, Tenant acknowledges their own duty to maintain a positive reputation and favorable customer reviews during the Term of the Lease. Tenant shall endeavor to maintain favorable customer reviews across popular online review platforms, such as, but not exclusively, Yelp, Tripadvisor, Google, Zagat, Open Table, etc. For the purposes of this Section, favorable reviews shall be considered as an average of three and one half (3.5) stars or above, or other equivalent rating, across at least two (2) platforms with a minimum of fifty (50) reviews each. In the event that Tenant’s ratings drop below this threshold, Tenant shall develop and implement an action plan that identifies and addresses issues that consistently and negatively impact reviews within forty-five (45) days of Landlord’s request. Landlord reserves the right to consider reviews in its decision to approve or deny any Extension Request, and shall provide Tenant a minimum of thirty days (30) days to contest any such decision on the premise of reviews.

18.03 Collective Responsibility for Wharf Safety and Experience. Tenant acknowledges that maintaining a safe and welcoming environment on the Wharf promotes the success of Tenant’s business and those of other Wharf tenants, as well as the sustainability of the Wharf itself. Tenant accepts its responsibility to comply with all Laws and permit conditions regarding the responsible sale of alcohol, including control of service, portion control, and the responsibilities of third-party liability, which are essential to protecting Tenant’s business, other tenants, the City, and visitors to the Wharf, if applicable.

In the event that Tenant is found to be in violation of alcohol laws or permit conditions, the City may require the Tenant to pay a fine of $1,000 per occurrence. This fine is cumulative and in addition to any other remedies the City or other public agency may take related to alcohol permit compliance.

18.04 Tenant Meeting Attendance. Tenant agrees to attend no fewer than fifty percent (50%) of Tenant coordination meetings held between the Landlord and Wharf tenants. Quarterly meetings are currently held between City staff and Wharf tenants to discuss issues and policies related to Wharf businesses, operations, and tenants. Tenant may designate an agent or employee to attend such meetings on behalf of Tenant.

ARTICLE 19. CONDEMNATION

19.01 Condemnation. If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of the exercise of said power (collectively "Condemnation"), this Lease shall terminate as to the part taken as of the date the condemning authority takes title or possession, whichever first occurs. If more than twenty-five percent (25%) of that portion of the Premises is taken by Condemnation, Tenant may, at Tenant’s option, to be exercised in writing within ten (10) days after Landlord shall have given Tenant written notice of such taking (or in the absence of such notice, within ten (10) days after the condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takes such possession. If Tenant does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the Minimum Base Rent shall be reduced in proportion to the reduction in utility of the Premises caused by such Condemnation. Except as provided herein, Landlord shall be entitled to receive all compensation and anything of value awarded, paid, or received in settlement or otherwise related to any Condemnation (“Award”) and Tenant irrevocably assigns and transfers to Landlord all rights to and interests in the Award, including, without limitation, any amount attributable to any excess of the market value of the Premises for the remainder of the Term over the present value as of the termination date of the Rent payable for the remainder of the Term (commonly referred

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to as the “bonus value” of the Lease). Notwithstanding the foregoing, Tenant shall have the right to make a separate claim in the Condemnation proceeding, as long as the Award payable to Landlord is not reduced thereby, for: (a) the taking of the unamortized or undepreciated value of any leasehold improvements owned by Tenant that Landlord has the right to remove at the end of the Term and that Tenant elects not to remove; (b) reasonable removal and relocation costs for any leasehold improvements that Tenant has the right to remove and elects to remove (if condemner approves of the removal); and (c) relocation costs under California Government Code section 7262, the claim for which Tenant may pursue by separate action independent of this Lease.

ARTICLE 20. MISCELLANEOUS

20.01 Attorneys’ Fees. In the event of any legal action, arbitration or proceeding between the Parties, the prevailing Party shall be entitled to reasonable attorneys’ fees and expenses as awarded by the court, arbitrator or other person deciding the legal action, arbitration or proceeding as a part of the judgment or award resulting therefrom.

20.02 Sale or Lease of the Premises by Landlord. Notwithstanding any provisions of this Lease, Landlord may assign in whole or in part Landlord’s interest in this Lease and may sell all or part of Landlord’s leasehold interest in the real estate of which the Premises are a part. In the event of any sale or exchange of the Premises by Landlord and assignment by Landlord of this Lease, Landlord shall be entirely freed and relieved of all liability under all covenants and obligations contained in or derived from this Lease or arising out of any act, occurrence or omission relating to the Premises which occurs after the consummation of such sale, exchange or assignment.

20.03 Liability to Successors. The covenants and conditions herein contained shall, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of the Parties hereto who shall be jointly and severally liable for the covenants contained herein. This Lease shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors, and assigns of the Parties hereto, but nothing in this Section shall be construed as a consent by Landlord to any assignment of this Lease or any interest in this Lease by Tenant except as provided in Article 14 (Assignment and Subletting) of this Lease.

20.04 Interpretation. Whenever the singular number is used in this Lease, the same shall include the plural. Reference to any gender shall include the masculine, feminine and neuter genders, and the word “person” shall include corporation, firm or association, when required by the content.

The headings or titles to the paragraphs of this Lease are for convenience only and do not in any way define, limit or construe the contents of such paragraphs.

This instrument contains all of the agreements and conditions made between the Parties with respect to the hiring of the Premises and may not be modified orally or in any manner except by a written instrument signed by all the Parties to this Lease.

The laws of the State of California shall govern the validity, performance and enforcement of this Lease. Any action or proceeding arising out of or relating to the Lease shall be brought in a state or federal court situated in the County of Santa Cruz, State of California. If any provision of this Agreement is determined to be void by any court of competent jurisdiction, such determination shall not affect any other provision of this Lease and such other provisions shall remain in full force and effect. If any provision of this Lease is capable of two constructions, one

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which would render the provision void and one which would render the provision valid, the provision shall be interpreted in the manner which would render it valid.

Except as may otherwise be expressly stated, each payment required to be made by Tenant shall be in addition to and not in substitution for other payments to be made by Tenant.

20.05 Time. Time is of the essence in this Lease.

20.06 Force Majeure. Any prevention, delay or stoppage due to strikes, lockouts, labor disputes, abnormal adverse weather conditions, acts of God, inability to obtain labor or materials or reasonable substitutes therefore, governmental restrictions, regulations or controls, enemy or hostile government action, civil commotion, fire or other casualty, and other causes beyond the reasonable control of and not caused by the fault or negligence of the Party obligated to perform, shall excuse the performance by such Party for a period equal to that resulting from such prevention, delay or stoppage. However, nothing contained in this Section shall excuse the prompt payment of Rent by Tenant as required by this Lease. Tenant's obligations to make payment for Rent and other charges pursuant to the terms of this Lease shall be excused or reduced only as elsewhere expressly and specifically provided in this Lease.

20.07 Notices. Any notice to be given by one Party to the other under this Lease or any options to be exercised under this Lease, shall be in writing. To the extent permitted by law, such notices shall be delivered via email to the addresses listed in Section 1.11 (Tenant’s Address for Notices) and Section 1.12 (Landlord’s Address for Notices).

If email is not permitted as sufficient written notice pursuant to California written law, the notice shall be delivered by: 1) personal delivery in writing to the address set forth in Section

1.11 (Tenant’s Address for Notices) and Section 1.12 (Landlord’s Address for Notices), in which case notice is effective upon delivery; 2) overnight courier (i.e. Federal Express) to the address set forth in Section 1.11 (Tenant’s Address for Notices) and Section 1.12 (Landlord’s Address for Notices) with postage and charges prepaid and return receipt requested, in which case notice is effective when delivered; 3) priority U.S. Mail to the address set forth in Section 1.11 (Tenant’s Address for Notices) and Section 1.12 (Landlord’s Address for Notices), in which case notice shall be deemed delivered on the second business day after the deposit thereof with the United States Postal Service; or 4) as otherwise required by law. Either Party may change its notification contact information set forth in Section 1.11 (Tenant’s Address for Notices), Section 1.12 (Landlord’s Address for Notices) and Section 1.13 (Landlord’s Address for Payment of Rent) by providing written notice of any such change in accordance with this paragraph.

Mailed notices shall be sent by United States Postal Service, certified or registered mail, postage prepaid, and shall be deemed to have been given on the date of posting in the United States Postal Service.

Either Party may, by proper written notice pursuant to this Lease, at any time designate a different address to which notices shall be sent.

20.08 Relationship of Parties. The relationship of the Parties hereto is that of Landlord and Tenant. Nothing in this Lease shall be construed to render Landlord in any way or for any purpose a partner, joint venturer, or associate in any relationship with Tenant other than that of Landlord and Tenant, nor shall this Lease be construed to authorize either to act as agent for the other.

20.09 Advertising and Promotion Fund. Landlord, upon acquiring approval from a majority of Wharf tenants and licensees, may establish a Wharf Marketing Association

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(“Association”) to market, advertise and promote the Municipal Wharf and its various businesses.

By executing this Lease, Tenant agrees to join the Association, if any, and to contribute funds to a Wharf Marketing and Promotion Fund (“Fund”) for the purpose of developing coordinated marketing plans which may include without limitation, media advertising, community-relations programs, special events and promotions of the Wharf and its businesses.

The Association members shall select a board of directors or other such advisory group as a majority of the members of the Association shall select which shall decide and approve all expenditures from the Fund. The activities of the Association shall be financed by the proceeds of the Fund and shall be based upon an annual budget based on an appropriate fiscal year.

If the Landlord elects to establish the Association, Landlord may impose a marketing fee on all members of the Association to implement the Fund. The marketing fee shall equal one-half percent (1/2%) of Gross Annual Sales as defined in this Lease. No such charge shall be imposed unless all members of the Association are similarly charged. This fee shall be in addition to any other Rent, payment or charge required under this Lease and shall be paid in monthly installments to the Landlord for remittance to the Association.

If a Business Improvement Area or Assessment District (as defined in the Santa Cruz Municipal Code) is established in the future which includes the Wharf and its tenants, the collection of marketing fees described above shall terminate if the assessments collected through said District equal or exceed the amounts collected by the Landlord for deposit into the Fund during the prior fiscal year.

20.10 Waiver. The waiver by Landlord of any breach of any provision, term, covenant or condition of this Lease shall not constitute a continuing waiver or a waiver of any subsequent breach by Tenant of either the same or a different provision, term, covenant, or condition of this Lease. The subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any provision, term, covenant or condition of this Lease, other than the failure of Tenant to pay the particular rental so accepted, regardless of Landlord’s knowledge of such preceding breach at the time of acceptance of such rent. No provision, covenant, term or condition of this Lease shall be deemed to have been waived by Landlord, unless such waiver is in writing by Landlord.

20.11 Accord and Satisfaction. No payment by Tenant or receipt by Landlord of a lesser amount than the Rent herein stipulated shall be deemed to be other than on account of the earliest stipulated Rent, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as Rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such Rent or pursue any other remedy in this Lease provided.

20.12 Joint and Several Liability. If more than one individual or entity comprises Tenant, the obligations and liabilities imposed on each individual or entity that comprises Tenant under this Lease will be joint and several.

20.13 Broker’s Commission. Each Party represents and warrants that there are no claims for brokerage commissions or finder’s fees arising from that Party’s activities in connection with this Lease, and each Party agrees to indemnify and hold the other Party harmless from all liability arising from any such claim.

20.14 Guaranty of Lease. This Lease shall not be effective until the Guarantor(s) named in Section 1.10 (Guaranty of Lease) has executed a written Guaranty in the form attached hereto as Exhibit C (Guaranty of Lease). If Section 1.11 (Guaranty of Lease) are blank or marked

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“Intentionally Omitted” then Tenant shall be solely responsible for all payments and performance required by this Lease.

20.15 Recycling Activities. Tenant agrees to participate, to the greatest extent possible, in all existing or future recycling activities initiated or arranged by Landlord with regard to the Wharf.

20.16 Assessment District Establishment. Tenant agrees not to unreasonably protest the establishment of an assessment district for purposes of parking, promotion, or maintenance.

20.17 MacBride Principles and the Peace Charter. The City Council of the City of Santa Cruz approved Resolution No. NS-19,378 on the 24th day of July 1990, endorsing the MacBride Principles and Peace Charter and encourages all companies doing business in Northern Ireland to abide by the MacBride Principles and Peace Charter.

20.18 Partial Invalidity; Severability. If any provision of this Lease is held by a court of competent jurisdiction to be invalid, void, or unenforceable, such determination shall not affect any other provision of this Lease and such remaining provisions of this Lease shall remain in full force and effect unimpaired by the holding.

20.19 Approval by City Council/City Attorney. This Agreement, and any amendment of its terms, except as under such authority delegated to the City Manager, or designee, is subject to the approval of the City Council of the City of Santa Cruz and the City Attorney, and shall not bind Landlord until such time as their approval and consent has been received in writing.

20.20 Subordination. This Lease is and shall be subordinate to any encumbrance now of record or recorded after the date of this Lease affecting the building, other improvements, and land of which the premises are a part.

Such subordination is effective without any further act of Tenant. Tenant shall from time to time, on request from Landlord, execute and deliver any documents or instruments that may be required by a lender to effectuate any subordination. If Tenant fails to execute and deliver any such documents or instruments, Tenant irrevocably constitutes and appoints Landlord as Tenant’s special attorney in fact to execute and deliver any such documents or instruments.

20.21 Permits and Approvals. Tenant is responsible for obtaining all applicable and required government permits or approvals. Approval by Landlord of any action requiring approval does not constitute approval by the City of Santa Cruz of any required permits or applications, and in no way limits the discretion of the City of Santa Cruz in the permit, regulatory, and approval process. Landlord and Tenant will render to each other reasonable assistance in obtaining necessary City of Santa Cruz and other governmental permits or approvals. Any consent or approval of the City of Santa Cruz for any permit, application, or regulatory matter does not constitute consent or approval by the Landlord under the terms of this Lease.

20.22 Prevailing Wage. It shall be the obligation of Tenant and/or any contractor or subcontractor under Tenant to comply with and conform to all State of California labor laws, rules and regulations and the Parties agree that the Landlord shall not be liable for any violation thereof.

To the extent that the construction of any Tenant Improvements or any other work performed pursuant to this Lease may be considered a “public work” (construction, alteration, demolition, or repair work) under and pursuant to the California Labor Code (see California Labor Code Sections 1720 et seq. and Title 8, California Code of Regulations, Chapter 8, Subchapter 3, commencing with Section 16000) and subject to labor compliance monitoring and enforcement by the Department of Industrial Relations, Tenant (and its contractor(s) and subcontractor(s) performing

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the work) shall conform to any and all prevailing wage requirements applicable to the work on the Premises under this Lease. Tenant (and its contractors and subcontractors) shall adhere to the prevailing wage determinations made by the Director of Industrial Relations pursuant to California Labor Code Part 7, Chapter 1, Article 2, applicable to the Tenant Improvements and associated work. All workers employed in the execution of a public works contract (as such term is defined California Labor Code Section 1720 et seq. and Section 1782(d)(1)) must be paid not less than the specified prevailing wage rates for the type of work performed. (Reference: California Labor Code Sections 1720, 1774 and 1782). Tenant shall ensure that its contractors and subcontractors also comply with and adhere to this prevailing wage provision. Tenant shall be responsible for any failure of Tenant’s contractors and/or subcontractors to comply with applicable prevailing wage and public works laws. If the Tenant is unsure whether the subject work is a “public work” as defined in the California Labor Code, it may wish to seek a timely determination from the California Department of Industrial Relations (“DIR”) or an appropriate court. Only the DIR and courts of competent jurisdiction have jurisdiction to issue legally binding determinations that a particular project is or is not a public work.

To the extent applicable to this Lease, Tenant agrees to be bound by the state prevailing wage requirements, including, but not limited to, the following:
(a) If a worker is paid less than the applicable prevailing wage rate owed for a calendar day (or any portion thereof), Tenant shall pay the worker the difference between the prevailing wage rate and the amount actually paid for each calendar day (or portion thereof) for which the worker(s) was paid less than the prevailing wage rate, as specified in California Labor Code section 1775; (b) Tenant shall maintain and make available payroll and worker records in accordance with California Labor Code sections 1776 and 1812; (c) If Tenant employs (and/or is legally required to employ) apprentices in performing any work and/or services on the Premises under this Lease, Tenant shall ensure compliance with California Labor Code section 1777.5; (d) Tenant is aware of the limitations imposed on overtime work by California Labor Code sections 1810 et seq. and shall be responsible for any penalties levied in accordance with California Labor Code section 1813 for failing to pay required overtime wages;
(e) Tenant shall post a copy of the applicable wage rates at each jobsite at a location readily available to its workers. (f) Any failure of Tenant and/or its subconsultant to comply with the above requirements relating to a public work project shall constitute a breach of this Lease that excuses the Landlord’s performance of this Lease at the Landlord’s sole and absolute option and shall be at the sole risk of Tenant. Tenant on behalf of itself and any subconsultant, agree to indemnify, defend and hold harmless the Landlord and its officials, officers, employees, and agents from and against any and all claims, liabilities, losses, costs, expenses, attorney’s fees, damages, expenses, fines, financial consequences, interest, and penalties, of any kind or nature, arising from or relating to any failure (or alleged failure) of Tenant and any subconsultant to pay prevailing wages or to otherwise comply with the requirements of prevailing wage law relating to a public work.
(g) Tenant acknowledges that it and/or any subconsultant may not engage in the performance of any contract for public work unless currently registered with the DIR and qualified to perform public work pursuant to California Labor Code

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section 1725.5 [with limited exceptions from this requirement for bid purposes only under California Labor Code section 1771.1(a)].

20.23 Limitation of Liability; Waiver of Consequential Damages; No Liability for Damages.
(a) The obligations of Landlord under this Lease shall not constitute personal obligations of Landlord or its City Council members, officials, directors, officers, employees, representatives, agents, or volunteers, and Tenant shall not seek recourse against Landlord’s City Council members, officials, directors, officers, employees, representatives, agents, or volunteers, or any of their personal assets for such satisfaction.
(b) In no event shall Landlord (or its City Council members, officials, officers, directors, employees, agents, representatives, or volunteers) be liable to Tenant for penalties or liquidated damages, or for special, indirect, consequential, or incidental losses or damages including, but not limited to, lost profits, loss or interruption of business, lost or damaged data, loss of use of facility or equipment, or the failure or increased expense of operations, regardless of whether any such losses or damages are characterized as arising from breach of contract, breach of warranty, tort, strict liability, or otherwise, even if Landlord is advised of the possibility of such losses or damages, or if such losses or damages are foreseeable.
(c) Tenant acknowledges that Landlord would not enter into this Lease if it were to be liable for damages (including, but not limited to, actual damages, economic damages, consequential damages, lost profits, loss of rents or other revenues, loss of business opportunity, loss of goodwill or loss of use) under, or relating to, this Lease or any of the matters referred to in this Lease. Accordingly, Tenant covenants and agrees on behalf of itself and its successors and assigns, not to sue Landlord (either in its capacity as landlord in this Lease or in its capacity as the City of Santa Cruz) or Landlord’s City Council members, officials, officers, directors, employees, agents, representatives, or volunteers for damages (including, but not limited to, actual damages, economic damages, consequential damages, lost profits, loss of rents or other revenues, loss of business opportunity, loss of goodwill or loss of use) or monetary relief for any breach of this Lease by Landlord or for any dispute, controversy, or issue between Landlord and Tenant arising out of or connected with this Lease or any of the matters referred to in this Lease (including, without limitation, any and all Wharf closures, Landlord obligations, and/or any and all plans, permits, licenses, regulatory approvals, California Environmental Quality Act (“CEQA”) documents, Transfers and/or any future amendments or enactments thereto), the Parties agreeing that declaratory relief, injunctive relief, mandate and specific performance shall be Tenant’s sole and exclusive judicial remedies.

20.24 Offer. Preparation of this Lease by either Party or their agent and submission of same to the other Party shall not be deemed an offer to lease to the other Party. This Lease is not intended to be binding until executed and delivered by all Parties hereto.

20.25 Compliance with City Departmental Rules and Regulations. Tenant agrees to comply with all rules and regulations imposed by the City's Fire, Police, Planning, Water, Public Works, Building, Finance, Economic Development and Housing and Sanitations departments and divisions, and any other departments and divisions in existence now or at any time in the future.

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20.26 Retention of Discretion. By its execution of this Lease, Landlord is not committing itself or agreeing to undertake any activity requiring the subsequent exercise of discretion by the City of Santa Cruz, or any department thereof, including but not limited to the approval of any Tenant Improvements, any CEQA documents, any development proposal or land use regulation governing the Premises, or any other approval. Tenant understands and agrees that Landlord in its capacity as the City of Santa Cruz reserves the right to exercise its discretion as to all matters which it is, by law, entitled or required to exercise its discretion, including, but not limited to, the consideration of Tenant Improvements, any CEQA documents, a final development or project, any and all plans, permits, licenses or regulatory approvals, and/or any other acts or activities requiring the subsequent independent exercise of discretion by the City of Santa Cruz or any agency or department thereof. Nothing in this Lease shall obligate the Landlord in its capacity as the City of Santa Cruz to exercise its discretion in any particular manner, and notwithstanding any provision of this Lease to the contrary any exercise of discretion required by law or permitted by this Lease shall not be deemed to constitute a breach of Landlord’s duties under this Lease.

20.27 Cumulative Remedies. The various rights, options, elections, powers and remedies contained in this Lease shall be construed as cumulative, and no one of them shall be exclusive of any of the others or of any other legal or equitable remedy which either party might otherwise have in the event of a breach or default in the terms of this Lease. The exercise of one right or remedy by such Party shall not impair its right to any other right or remedy until all obligations imposed on the other party have been fully performed.

20.28 Counterparts. This Lease may be executed in several counterparts and all such executed counterparts together shall constitute one agreement binding on all of the Parties. A scanned, electronic, facsimile or other copy of a Party’s signature shall be accepted and valid as an original.

20.29 Entire Agreement. This Lease and the attached Exhibits contain all of the agreements and conditions made between the Parties with respect to the hiring and leasing of the Premises and the subject matter of this Lease and supersede all prior agreements or understandings between the Parties related thereto. Any agreements or representations respecting the Premises, their leasing to Tenant by Landlord, or any other matter discussed in this Lease not expressly set forth in this instrument are null and void.

This Lease may not be modified or amended orally or in any manner except as provided in Section 20.32 (Amendments to Lease) below.

20.30 Construction of Agreement. Each Party acknowledges that it has reviewed this Lease and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting Party shall not apply in the interpretation or construction of this Lease.

20.31 Amendments to Lease. This Lease may not be amended in any respect except by way of a written instrument which expressly references and identifies this particular Lease, which expressly states that its purpose is to amend this particular Lease, and which is duly executed by the Parties.

20.32 Warranty of Authority. The signatories to this Lease warrant and represent that each is authorized to execute this Lease and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this Lease.

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SIGNATURE PAGE FOLLOWS

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The Parties have executed this Lease as of the Effective Date.

LANDLORD
City of Santa Cruz
A California municipal corporation
By: ________________________________ Date: _____________________ Matt Huffaker
Its: City Manager
TENANT
By: _____________________________ Date: _____________________ Eric Gil, President
By: _____________________________ Date: _____________________ Ellen Gil, Secretary
APPROVED AS TO FORM:
_____________________________ Date: _____________________ Office of the City Attorney
5/21/26

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Exhibit A
Location of Premises on Santa Cruz Municipal Wharf

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Exhibit B
Floor Plan of Premises
(This Floor Plan is from 2017; updates may have been made since then)

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Exhibit C
Guaranty of Lease

1. In consideration of the execution of the attached Lease dated ______________, by and between City of Santa Cruz, a municipal corporation (“Landlord”) and Socksmith Design, Inc., a California corporation, (“Tenant”) for the premises known as 17-E Municipal Wharf in Santa Cruz, California, the undersigned Guarantor(s) hereby unconditionally and irrevocably guarantee(s) to Landlord, its successors and assigns, the prompt payment by Tenant of the rent and all other sums required under the Lease, and the faithful performance by Tenant of all the terms, covenants, and conditions contained in the Lease. The lease is incorporated herein by reference.

2. This Guaranty shall not be affected by any deviation from or alteration of the terms, covenants, or conditions of the Lease or by any permitted assignment or subletting of all or any part of the interest of Tenant in the Lease. This Guaranty shall not be released, extinguished, modified, or in any way affected by failure on the part of Landlord to enforce any or all of its rights or remedies whether pursuant to the terms of the Lease or at law or in equity.

3. This Guaranty is a continuing one and shall terminate only on payment by Tenant of all the rent and other sums required under the Lease and on performance by Tenant of all duties and obligations contained in the Lease.

4. The undersigned waives notice: (a) of any default by Tenant (i) in payment by Tenant of any of the rent or other sums hereby guaranteed and (ii) in performance by Tenant of the terms, covenants, and conditions of the Lease, and (b) of acceptance by Landlord of this Guaranty. Landlord agrees to give written notice to the undersigned prior to commencing legal action against the Tenant or against the undersigned.

5. The undersigned consents that Landlord may from time to time extend the time for performance or otherwise modify, alter, or change the Lease and any or all of its provisions and may extend the time for payment of the rent and all other sums hereby guaranteed and may receive and accept notes, checks, and other instruments for the payment of money made by Tenant and extensions and renewals thereon without in any way releasing or discharging the undersigned from its obligations under this Guaranty. Notice of presentment of any such note or notes and/or notice of default in the payment thereof at maturity and/or protest or notice of protest thereof is expressly waived.

6. The undersigned further consents and agrees that Landlord shall not be required, in order to enforce this Guaranty, to first institute suit or exhaust its legal remedies against Tenant. This Guaranty of Lease shall not be extinguished as a result of any bankruptcy proceeding.

7. This Guaranty may be immediately enforced against the undersigned (jointly and/or severally if more than one guarantor) on any default by Tenant, and the insolvency of Tenant shall be deemed a default.

8. In the event any action should be commenced by Landlord against the undersigned to enforce any of the terms or conditions of this Guaranty, Landlord shall be entitled to recover from the undersigned hereunder in any action in which it shall prevail, reasonable attorneys’ fees and expenses.

9. If there is more than one Guarantor, the obligations and liabilities imposed on each individual that serves as a Guarantor under this Guaranty will be joint and several.

10. This Guaranty shall inure to the benefit of Landlord, its successors and assigns, and shall bind the successors and assigns of the undersigned.

11. The unenforceability, invalidity, or illegality of any provision(s) of this Guaranty shall not render the other provisions unenforceable, invalid, or illegal.

12. The undersigned Guarantor(s) acknowledge(s) that he/she has/have reviewed this Guaranty and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Guaranty.

13. The undersigned Guarantor(s) acknowledge(s) giving mature and careful thought to this Guaranty and has the legal capacity and standing to enter into this Guaranty. The

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undersigned Guarantor(s) acknowledges understanding the meaning and legal consequences of this Guaranty.

14. This Guaranty may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the undersigned has executed this Guaranty this ______ day of _____________, 20__.

Guarantor:
______________________
Ellen Gil, individually and as
partial owner of Socksmith Design, Inc.

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CERTIFICATE OF ACKNOWLEDGMENT OF NOTARY PUBLIC
State of California)
County of Santa Cruz)
On ______________________ before me,
, Notary Public, personally
appeared __________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
(This area for official notary seal)
Signature ______________________________
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

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Exhibit D
Statement of Gross Income and Rent
(form of begins next page)

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IN ACCOUNT WITH

CITY OF SANTA CRUZ
1200 PACIFIC AVENUE, SUITE 290
SANTA CRUZ, CALIFORNIA 95060
Socksmith Design, Inc.
17-E Municipal Wharf
Santa Cruz, CA 95060
This completed and signed form, together with the accompanying payment, must be received by the City no later than close of business on the fifteenth day of the month following the month for which you are reporting sales. Do not modify this form.

MONTHLY STATEMENT OF GROSS INCOME, RENT, AND

CAPITAL IMPROVEMENT CONTRIBUTIONS
FOR MONTH ENDING _________________ 20___

1. Gross quarterly income (all sales and business transactions): ..................................... $ ___________

2. Cash or credit refunds made upon sales from premises: ..................................................... $ ___________

3. The amount of any city, county, state or federal sales, luxury or excise taxes on sales from the premises where such taxes are both added to the selling price and paid to the taxing authorities by Tenant: ................................................................................. $ ___________

4. Total adjustments (Line 2 plus Line 3): ................................................................................ $ ___________

5. Adjusted gross income (Line 1 minus Line 4): ..................................................................... $ ___________

6. Percentage Rent:
a. Up to and including Breakpoint: $___________ x 8%: ................................................. $ ___________ b. Over Breakpoint: $___________ x 6%: ........................................................................ $ ___________

7. Percentage Rent (Line 6a plus 6b): ..................................................................................... $ ___________

8. Current minimum monthly rent: ............................................................................. $ _1,675.12__

9. RENT DUE (the greater of Line 7 or Line 8): ....................................................................... $ ___________

10. CAPITAL IMPROVEMENT CONTRIBUTION (1.0% of Line 5): ........................................... $ ___________

11. LATE FEE (10% of Line 9 plus Line 10 if paid after the due date): ...................................... $ ___________

12. INTEREST ON UNPAID RENT (1.5% monthly interest on Line 9 plus Line 10 if paid after the due date): ....................................................................................................................... $ ___________

13. CREDIT/TRUE UP (amount of any prior rent over/underpayments)*: .................................. $ ___________

14. TOTAL REMITTANCE (Sum of Line 9-13): .......................................................................... $ ___________

*Description of Credit/True Up
I hereby certify that “Gross Monthly Income” reported herein is equal to total gross sales which have been or will be reported on the State, Federal and District Sales and Use Tax Return submitted to the State Board of Equalization for the period ending _________________.
______________________________________________________
Signature of Tenant or Tenant’s Principal Agent
Executed at Santa Cruz, California on ______________________, 20_____ w511701
Capital Improvements

15.71

Exhibit E
Construction Work Best Management Practices and Regulations (attached)

15.72 CONSTRUCTION WORK
Best Management Practices
Chapter 4 of the Best Management Practices Manual for the City’s Storm Water Management Program
Planning Department
Public Works Department
809 Center Street, Santa Cruz, CA 95060
Revised: June 2014
Published: March 2007
Authorized by Municipal Code Chapter 16.19

15.73 ii

TABLE OF CONTENTS

1. PLANNING CONSTRUCTION PROJECTS ................................................................................................ 1

1.1. Site Planning to Minimize Project Impacts .............................................................................................. 1

1.2. Erosion Control Plan Requirements ......................................................................................................... 2

2. EROSION AND SEDIMENT CONTROL REQUIREMENTS..................................................................... 3

2.1. Erosion Control ........................................................................................................................................ 3

2.2. Sediment Control...................................................................................................................................... 4

3. SITE HOUSEKEEPING REQUIREMENTS ................................................................................................. 5

3.1. Equipment and Vehicle Maintenance and Cleaning ................................................................................ 5

3.2. Material Storage and Soil Stockpiles ....................................................................................................... 5

3.3. Dewatering Operations ............................................................................................................................. 6

3.4. Waste Management: Building Materials, Demolition Waste, and Vegetation ........................................ 6

3.5. Portable Toilet Facilities .......................................................................................................................... 7

3.6. Site Cleanup ............................................................................................................................................. 8

4. PAINTING AND MASONRY WORK .......................................................................................................... 8

4.1. Painting..................................................................................................................................................... 8

4.2. Masonry and Concrete Work ................................................................................................................... 9

5. SIDEWALK AND ROADWORK ............................................................................................................... 10

6. References & Credits .................................................................................................................................... 10

7. Contact .......................................................................................................................................................... 10

15.74 1
In the City of Santa Cruz, water in the streets, gutters, and storm drains flows to local creeks, the San Lorenzo River, or Monterey Bay without any treatment. Construction sites have the potential to generate wastewater and runoff that carry sediment, debris, paint, concrete, and other harmful pollutants. Thus, in order to reduce the amount of pollutants reaching the storm drain system and local waterways, the City developed “Best Management Practices (BMPs)” for construction work. All types of construction projects, whether large or small projects, must abide by these BMPs. Construction work includes, but is not limited to, clearing, grading, excavation, stockpiling, building, masonry and concrete work, and roadwork. These BMPs apply to commercial, retail, industrial, and residential projects, and to both new construction sites and remodeling projects.

1. PLANNING CONSTRUCTION PROJECTS

1.1. Site Planning to Minimize Project Impacts
Coordinating BMP implementation and construction activities is critical in preventing erosion and sediment loss. The site planning measures below shall be incorporated in project grading and erosion control plans to reduce the potential for soil erosion and storm water impacts:
 Site development shall closely match the existing
topography and soil in order to minimize the
potential for erosion. Minimize disturbed area and
protect natural features including soil, trees and
shrubs.
 Protect trees subject to the Heritage Tree
Ordinance and other trees designated for protection
by a development proposal through the use of
fencing, tree armoring, barricades or other
appropriate methods during the construction phases.
 Clearly mark the proposed limits of land
disturbance prior to commencing topsoil or
vegetation removal to ensure that only the required
land is cleared. Delineate clearing limits,
easements, setbacks, sensitive or critical areas,
trees, drainage courses, and buffer zones prior to
construction to prevent excessive or unnecessary
disturbances and exposure.
 Do not remove existing trees or tree stands located
on a site for which a discretionary permit is
required until such a permit is approved by the
Planning Department.
 Conduct grading operations in phases in order to
reduce the amount of disturbed areas and exposed
soil at any one time. Unless specifically approved
on the project’s Erosion Control Plan, no clearing,
excavation, or grading shall be conducted during rainy weather. All rainy season grading must be in accordance with Section 18.45.040 of Title 18 of the City’s Municipal Code. An exception may be granted by the Building Official for minor soil disturbance that does not present a hazard.  Plan to route construction traffic over areas that must be disturbed for other construction activities in order to reduce the amount of area that must be cleared.

HEADS UP!
SOIL DISTURBANCE OVER 1 ACRE
If your project will disturb one acre or more of soil
(or is less than one acre but part of a larger
development), you must file a Notice of Intent (NOI)
with the State Water Resource Control Board
(SWRCB) to obtain coverage under the General
Permit for Discharges of Storm Water Associated
with Construction Activity (Construction General
Permit) prior to commencing work.

As part of the submittal to the SWRCB, a Storm
Water Pollution Prevention Plan (SWPPP) must be
prepared for the proposed project by a Qualified
SWPPP Developer (QSD).When receiving coverage
under the Construction General Permit, the project
will be assigned a Waste Discharger Identification
(WDID) from the SWRCB. The City of Santa Cruz
will not issue a Building permit for the project
unless it has received a WDID. For more
information on the Construction General Permit,
visit
http://www.waterboards.ca.gov/water_issue
s/programs/stormwater/construction.shtml

15.75 2

1.2.Erosion Control Plan Requirements
Site grading and construction activities shall be implemented in accordance with an approved erosion control plan. Before designing an Erosion Control Plan, gather project background information, including soil type, drainage, topography, and surrounding site conditions. This information will help determine appropriate Construction BMPs. Erosion Control Plans shall be submitted with all building permit applications involving ground disturbance and shall include at a minimum:
 Site topography
 Nearby watercourses within 200 feet of the project area  Proposed grading contours
 Locations of existing utilities, including sewer, storm drain, curb and gutter, as applicable  Location of proposed erosion control measures and installation details (see section 2.1 for requirements)
 Location of proposed sediment control measures and installation details (see section 2.2 for requirements)
 Location of proposed construction waste control measures (see section 3.4 for requirements)  Stockpile and equipment staging areas
 Total area of disturbance (in acres)
 List of other required permits associated with the grading activity, such as State Construction General Permit, U.S. Army Corps of Engineers 404 permit, State Water Board 401 Water Quality Certification, California Department of Fish and Wildlife 1600 Agreement, as applicable. .

Figure 1: Example Erosion Control Plan

15.76 3

2. EROSION AND SEDIMENT CONTROL REQUIREMENTS
Erosion and sediment control BMPs shall be in place and implemented, as appropriate, prior to commencing grading or vegetation removal. These measures shall be maintained on all disturbed areas in order to minimize the release of sediment in a site’s storm water discharge.

2.1. Erosion Control
Any project that involves ground disturbance shall include the following minimum erosion control measures on the erosion control plan. Note erosion control measures on the plan and provide installation details.
 Protect and preserve topsoil to minimize erosion and retain infiltration capacity.
 Minimize land disturbance such as cuts and fills. Stabilize slopes and all disturbed areas as soon as grading is finished or cut-and-fills are made.
 Cover bare soils and slopes as soon as possible. Use one or more of the following to reduce the erosion potential from bare, exposed, or disturbed soil: rolled erosion control products (e.g. filter fabric, erosion control blankets, geotextiles), hydraulic mulch or hydroseeding, straw or wood mulch, seeding,
vegetation planting, or other appropriate cover material.  Do not use seeding or loose mulch on slopes greater than 3:1 (H:V) without additional erosion protection such as geotextiles or hydroseeding. If vegetative cover is used, establish a uniform vegetative cover with a minimum of 70 percent coverage.  Protect vegetated buffer zones and riparian corridors by using silt fences, that are properly staked in (on flat land or moderate slopes), or use other appropriate sediment controls.  Properly install and maintain all on-site erosion control measures and structural devices, both temporary and
permanent. Promptly repair or reinstall any erosion control measures and structural devices that were damaged during construction and maintain them so that they do not become nuisances with stagnant water, odors, insect breeding, heavy algae growth, debris, and/or safety hazards.
 A qualified person should conduct inspections of all on-site BMPs during each rainstorm, if possible, and after a storm is over to ensure that the BMPs are functioning properly. For sites greater than one-acre, on-site inspections are required in accordance with the State Water Quality Control Board
Construction Activities Storm Water General Permit.

Figure 2: Types of Erosion
Figure 3: Protect Vegetated Buffers &
Riparian Corridors

15.77 4

2.2. Sediment Control
Any project that involves ground disturbance shall include the following minimum sediment control measures on the erosion control plan. Note sediment control measures on the plan and provide installation details. Installation standard details can be downloaded from the California Department of Transportation (Caltrans) website at http://www.dot.ca.gov/hq/construc/stormwater/details.htm or on the California Stormwater Quality Association (CASQA) website.  Perimeter control. Use one or more sediment control measures, such as fiber rolls and silt fences, to prevent sediment from leaving the site during the winter season. The measure(s) used will depend upon site conditions and topography.

Fiber rolls can be used around the perimeter of the soil disturbance area on flat sites to prevent or limit
sediment from leaving the site. In urban areas or sites directly adjacent to streets, place fiber rolls at the back of the curb or sidewalk. Fiber rolls are also appropriate in combination with erosion control cover on slopes to
shorten slope length and spread runoff as sheet flow.

Silt fences can be used for perimeter control and/or as interior controls down-slope of disturbed areas on sites where slopes do not exceed 4:1 (H:V). Silt fences are
not appropriate in concentrated runoff flow areas, in
areas where flooding is a concern, or along slopes.

Silt fences must be properly staked in to be effective. Install silt fences so that the drainage around each fence does not create erosion and rills down-slope of the fence. Turn the ends of the silt fence uphill to prevent storm water from flowing around the fence. If not installed at the same elevation throughout, silt fences will create erosion.
 Storm Drain Inlet Protection. Projects that include storm drain inlets or projects that drain into storm drains shall include measures on the Erosion Control Plan to protect the inlets so silt and other pollutants do not enter the storm drain system. Effective methods to protect storm drain inlets include rock/sand bag barriers, fiber rolls, heavy rubber mats to cover and seal the inlet, and geotextile blankets inserted into the catch basin.

Do not use sand bags or straw wattles around storm drain inlets exposed to vehicular traffic in streets or parking lots.

Train employees and contractors to not drive over or park on sand bags, fiber rolls or berms protecting storm drain inlets. If protective barriers are broken or damaged, cleanup and remove any particles entering the storm drain inlet, and replace them immediately.  Stabilized construction access/exit. All projects that include ground disturbance must include a stabilized construction access/exit, unless construction vehicles and equipment will remain on paved surfaces at all times during construction. Show the location of the stabilized construction access/exit on the Figure 6: Stabilized construction access Erosion Control Plan as well as construction details and notes.

Figure 4: Perimeter silt fence
Figure 5: Storm drain inlet
protection

15.78 5
 Sediment Control on Slopes. Additional measures will be required to reduce runoff velocity and to trap sediments on slopes.

The following measures may be applied individually or in combination: erosion control blankets, fiber rolls, terracing, check dams and energy dissipaters, and/or diversion structures to reduce runoff velocity and trap sediments.
 Long-term sediment control. Measures are required to ensure that erosion and sedimentation do not become an issue once the project is completed. The following measures can be effective for long term sediment control once the plantings and roots have grown to sufficient size:
o Seeding slopes by hydro-seeding or with seeded blankets; preferably using native seeds
o Landscaping with plant species that grow rapidly and have root systems that are effective at “holding” soil

3. SITE HOUSEKEEPING REQUIREMENTS
Include the following housekeeping practices on the Erosion Control Plan as applicable. Implement during construction in order to minimize the potential for storm water impacts.

3.1. Equipment and Vehicle Maintenance and Cleaning
 Inspect equipment and vehicles frequently and repair any leaks as soon as possible. Contain and clean up leaks, spills, and drips of hazardous materials and chemicals as quickly as possible to minimize run-off or soak in. This includes fuel and motor oil, hydraulic fluid, and glycol based anti-freeze from vehicles. Use dry cleanup methods if possible. Perform major maintenance and repairs off-site.  Remove encountered abandoned fuel/oil tanks (and their contents) in a manner consistent with methodology approved by both the City and the Santa Cruz County Environmental Health Department.  If repair or refueling of vehicles and equipment must be done on-site, use a designated location away from storm drain inlets, water bodies, and other sensitive areas.  If equipment is washed on-site, wash water may not be discharged to the storm drain system. If possible, wash vehicles at an appropriate off-site facility.  Recycle used motor oil, other vehicle fluids, and vehicle parts whenever possible.

3.2. Material Storage and Soil Stockpiles
 Locate material and soil stockpiles away from gutters, storm drain inlets, and water bodies. In addition, keep stockpiles away from steep slopes and unstable soil in order to minimize the chance of an accidental release to the environment. Stockpiles may never be stored on a street or in an alley unless specifically approved by the Public Works Department.
 Store materials, including stockpiles and excavation spoils, under cover and protected from wind, rain, and runoff. Cover piles of soil, construction materials and wastes with plastic sheeting or tarps.

Figure 7: Fiber roll installation

15.79 6
 During the rainy season, after October 1st or sooner if rain is forecast, implement control measures for the items listed below if stored outside in order to prevent sediment, litter, and other pollutants from leaving the site and/or being discharged into the storm drain system. o Material stockpiles
o Soil stockpiles
o Excavation spoils
o Construction materials
 Store open bags of particulate, granular, or powder materials (such as plaster or concrete) indoors if possible. If stored outside, they must be covered or closed, and during the rainy season they must be kept within secondary containment.
 Store paints, chemicals, solvents, and other hazardous materials inside or within a shed with double containment.
 Keep dumpster lids closed and secured. For dumpsters or bins that don’t have a lid, cover them with plastic sheeting or a tarp during rainy or windy weather.

3.3.Dewatering Operations
Proper procedures must be followed before starting construction and during construction to manage the discharge of groundwater or storm water accumulated in construction site excavations or other non-storm water discharges.
 When it is expected that water encountered during site construction will need to be discharged offsite, make
arrangements ahead of time to properly manage and
dispose of this water. Identify the location of
dewatering activities and the nearest sanitary sewer
connection where the water will be discharged on the
Erosion Control Plan.
 Direct groundwater or storm water that must be
pumped out of an excavation to a settling tank to
allow sediments to settle out of the water.
 Retain water from fire sprinkler system dewatering
onsite for landscape irrigation or direct it towards the sanitary sewer.
 Apply for a wastewater discharge permit from the City’s Wastewater Treatment Facility before connecting to the sanitary sewer. Contact an Environmental Compliance Inspector, at 420-6050 to request a permit.

3.4.Waste Management: Building Materials, Demolition Waste, and Vegetation  Onsite storage of construction materials. Store wastes in containers or a dumpster whenever possible.

Cover piles of uncontained wastes and wastes stored in open containers during windy conditions and prior to significant forecasted rain (0.25 inches in a 24-hour period). Do not hose dumpsters out on the construction site.

Use construction products made from or packaged in polystyrene/plastic foam in a manner preventing the polystyrene/plastic foam from being released into the environment.

HEADS UP!

DEWATERING OPERATIONS
Water from fire sprinkler and excavation
dewatering that cannot be managed onsite
shall be directed towards the sanitary
sewer. A permit must be obtained from
the City’s Wastewater Treatment Facility
before connecting to the sanitary sewer.

15.80 7
 Building materials and demolition waste. All residential and nonresidential construction projects must comply with the mandatory 50% recycle rate for all construction and demolition waste, per City’s Construction Waste Management Plan (CWMP). If contractors, and/or subcontractors haul their own material as part of the scope of work, they shall not be excluded from complying with the CWMP.

All contractors, and/or subcontractors shall provide the City of Santa Cruz with all required documentation of weight and waste diversion data for the materials hauled. Contact the Green Building coordinator at 420-5120 for more information.

Never leave or abandon materials or excavation spoils at a project site. At the end of a construction project, collect all unused or waste materials and dispose of properly. Do not leave discarded building materials, demolition wastes and waste vegetation in a street, gully, or waterway.  Construction and demolition waste recycling. Recyclable waste includes broken concrete, green waste, lumber and wood, scrap metal and appliances. Call the City’s Customer Service Division, at telephone (831) 420-5220, for information about what may be recycled and to make arrangements to have recycling bins or dumpsters brought to the work site.

Construction projects at commercial or industrial sites must obtain any detached roll-off boxes, dumpsters, debris-boxes or other containers for collection of waste materials (to be disposed of or recycled) from the City’s Sanitation Services at (831) 420-5220. A private hauling service may be used only if all roll-off boxes or containers are left attached to the service’s vehicle the entire time the box is at the site.

There are reduced rates available for certain waste materials separated according to type. These waste types are: 1) green waste, lumber and wood; 2) mixed construction and demolition debris; 3) dirt; and 4) broken brick, asphalt, and concrete. When calling Customer Service, please ask about the “Other Materials” box rates and tonnage fees for separated materials. The same tonnage fees are also available at the landfill for self-hauled separated loads.
 Waste vegetation. Dispose of waste vegetation and unpainted or untreated lumber through the City’s GreenCycle! program.

The program accepts many types of vegetation including brush, plants, branches, untreated boards, and tree trunks (not exceeding 24 inches in diameter and four feet in length).

Vegetation may be dropped off at the City’s Resource Recovery Facility or placed in a City GreenCycle! container for pickup by the City. For more details, call the City’s Customer Service Division at (831) 420-5220.

Never dump or leave soil, mulch, vegetation, and other
landscape products into the street, gutter, or storm drain system.  Hazardous materials. Asbestos and other debris containing hazardous materials must be disposed of as hazardous waste. For more information about hazardous waste disposal, please contact the County Environmental Health Department at (831) 454-2022.

3.5. Portable Toilet Facilities
All sanitary wastes shall be collected and managed through the use of portable toilet facilities, serviced with disposal in the sanitary sewer system, or permanent toilet facilities plumbed to the sanitary sewer.  If portable toilets are used, ensure that the leasing company properly maintains the toilets and promptly makes repairs as needed. Conduct visual inspections for leaks.

15.81 8
 Place portable toilets on a level surface and at a safe distance away from paved areas and, to the extent practical, storm drain inlets. Secure them to prevent blowing over.  Provide secondary containment for portable toilets located within 20 feet of a stream, storm drain, or street.
 During pump-out, take appropriate measures to avoid spillage. If spillage occurs it shall be cleaned up immediately.

3.6. Site Cleanup
 When cleaning up, sweep whenever possible. Litter and debris must be picked up and disposed of properly.
 Road or sidewalk work. In the roadway or on the
sidewalk, material stockpiles must be removed and
cleaned up by the end of each day.
 Landscaping work. Sweep up soil and other landscape
products that remain on pavement, such as the sidewalk, driveway, or street by the end of each day.
 Sediment Control Devices. Sweep and remove any solid
waste that accumulates at erosion and sediment control
devices as soon as possible.

4. PAINTING AND MASONRY WORK

4.1. Painting
 Paint, paint thinner, and rinse water containing either of these may never be discharged into the storm drain system.
 When there is a risk of a spill reaching storm drains, protect nearby storm drain inlets prior to starting painting.
 Clean up spills immediately.
 When work is conducted on a bridge, take precautions to prevent runoff from reaching the water body beneath the bridge.  When cleaning brushes and rollers after painting, brush out excess paint onto newspaper or cardboard. Never clean or rinse paintbrushes, rollers, and containers into a street gutter or storm drain inlet.

If using latex paints, the brush or roller can be rinsed in a sink that is plumbed to the sanitary sewer. If using oil-based paints, the brush or roller needs to be cleaned with paint thinner. Do not discharge paint thinners to the sanitary sewer. Paint thinner must be disposed of as hazardous waste.
 Drain leftover paint in the roller pan back into the paint can. If using paint hoses and guns, spray out the paint residue into the paint can.

HEADS UP!

SITE CLEANUP
Do not clean the street, sidewalk, or
other paved areas by washing or by
directing sediment, concrete, asphalt, or
other particles into the storm drain
system. If using water, direct it to a
landscaped or grassy area large enough
to absorb all the water.

Figure 8: Do not let paint, paint thinner,
or water containing either flow to the
gutter or storm drain system

15.82 9
 Leftover water-based (latex) paint should be
recycled, returned to the supplier or donated to
someone who will use it. Dried latex paint and empty
paint cans may be disposed of in the garbage.
 Leftover oil-based paint may be recycled or disposed
of as hazardous waste. For more information about
hazardous waste disposal, please contact the County
Environmental Health Department at (831) 454-2022.
 Non-hazardous paint chips and dust from dry
stripping and sand blasting may be swept up or
collected in plastic drop cloths and disposed of as
trash. Residue from chemical paint stripping and chips
and dust from marine paints or paints containing lead
or tributyl tin must be disposed of as a hazardous
waste.
 If grinding or blasting is used to remove old paint,
protect nearby storm drain inlets with some type of a
protective cover such as a heavy rubber mat. Paint
dust, particles, and other debris must be completely
cleaned up, preferably by sweeping, after the job is
done.

4.2. Masonry and Concrete Work
 Concrete, cement, and masonry products may never be discharged into the storm drain system.

Concrete, cement, and masonry mixing containers may not be washed or rinsed into the street or storm drain system. If a concrete transit mixer is used, a suitable washout box, excavation or self-washing mixer able to contain the waste material shall be provided on-site.  Do not mix fresh concrete or cement mortar in a gutter, over a storm drain inlet, or immediately adjacent to a water body.
 During tile or concrete cutting, ensure that the slurry water does not run off into the street or storm drain system. Also, dried slurry must be cleaned up and properly disposed so that it will not be carried into the storm drain system by wind, traffic, or rain.
 Store materials under cover and protected from wind, rain, and runoff.  Small amounts of excess concrete, grout, and mortar may be disposed of in the trash.  Wash out from concrete mixers may never be disposed of in the street or storm drain system. If possible, pump the washout back into the mixer for reuse.

HEADS UP!

BUILDING EXTERIOR CLEANING
When using high-pressure water to strip
or clean building exteriors prior to
painting, cover or berm nearby storm
drain inlets to prevent discharge into the
storm drain system. The wastewater must
be collected and discharged to the
sanitary sewer if the paint does not
contain lead (usually buildings painted
after 1978) or mercury. If paint
containing lead or mercury was used,
contact an Environmental Compliance
Inspector, at (831) 420-6050, for
information about the appropriate
discharge or disposal options prior to
commencing the work.

15.83 10

5. SIDEWALK AND ROADWORK
 Protect nearby storm drain inlets (preferably with heavy rubber mats) and adjacent water bodies prior to breaking up asphalt or concrete.
 If it rains unexpectedly, take appropriate action to prevent pollution of storm water runoff (e.g., divert runoff around work areas, cover materials).
 Saw-cut slurry. The discharge of saw-cut slurry to the storm drain system is prohibited. Take measures to contain the slurry and, if necessary, protect nearby catch basins or gutters. If slurry enters the storm drain system, remove material immediately.

Dried saw cut slurry must be cleaned up and properly disposed so that it will not be carried into the storm drain system by wind, traffic, or rainfall.
 Oil sealants. Cover and seal nearby storm drain inlets and manholes before applying seal coat, slurry seal, etc. Leave covers in place until the oil sealant is dry or the end of the day.  Park paving machines over drip pans or absorbent materials if they have a drip or leak.  Waste and material management. After breaking up old pavement, sweep up materials and recycle as much material as possible. Properly dispose of non-recyclable materials.

Never wash sweepings from exposed aggregate concrete into a street or a storm drain inlet. Collect and return to aggregate base stockpile or dispose of in the trash.

Remove and clean up material stockpiles (i.e. asphalt and sand) by the end of each week or, if during the rainy season, the end of the day. Stockpiles must be removed by the end of each day if they are located in a public right-of-way.

6. References & Credits
Erosion and sediment control illustrations from: U.S. Environmental Protection Agency (EPA), National Pollutant Discharge Elimination System (NPDES), “Developing Your Stormwater Pollution Prevention Plan: A Guide for Construction Sites”, available online at http://water.epa.gov/polwaste/npdes/stormwater/Stormwater-Pollution-Prevention-Plans-for-ConstructionActivities.cfm

7. Contact
For more information, please call the City of Santa Cruz:

Public Works Department: 420-5160
Environmental Compliance Inspector: 420-6050
Planning Department: Building Inspection Services at 420-5120 Planning Department: Green Building at 420-5120
Figure 9: Do not discharge saw cut slurry
to the gutter or storm drain system

15.84

Exhibit F
Municipal Wharf Sign Guidelines

1.01. Purpose.
a. These Guidelines are intended to provide Wharf Tenants with general criteria regarding appropriate business signage.
b. All advertising devices and signs shall comply with the regulations set forth at Santa Cruz Municipal Code (“SCMC”) Chapter 24.12 Part 4 entitled “Advertising Devices, Signs and Billboards” made part hereof by reference.
c. In the event of conflict or inconsistency between these Guidelines and SCMC Chapter 24 Part 4, SCMC Chapter 24.12 Part 4 shall prevail.

2.01. City Approval. AII exterior signs must be approved in writing by the City Wharf Staff Committee. Certain types and sizes of signs require zoning and building or electrical permits.

3.01. Sign Application Process.
a. Tenants shall submit an application for all new signage to the City’s Wharf Property Manager. The application shall consist of:
i. Dimensioned drawings of the sign;
ii. Type of material, color, lighting, and other sign characteristics; iii. Sketch or photograph showing proposed location with approximate dimensions to ground, roof, doors, and windows.
b. The Wharf Property Manager will forward the application to the City Staff Wharf Committee for review and action.
c. Upon City Staff Wharf Committee action, the Wharf Property Manager shall inform the Tenant of the decision. If the application is approved, the Tenant will be notified of any other City approvals required.

4.01. Sign Criteria.
a. Types. The following types of signs are appropriate for use on the Wharf:
i. Signs painted directly on buildings.
ii. Signs mounted directly on building walls.
iii. Individual letters and numerals mounted directly on building walls. iv. Neon signs.
v. Iconic signs.
vi. Window signs.

15.85

vii. Hanging Signs.
b. Size. Each Wharf business is allowed thirty (30) square feet of total sign area. The following configurations are acceptable:
i. One 6’x5’ sign;
ii. Three 2’x5’ signs;
iii. One 4’x5’ sign, one 2x2’ sign, and one 3’x2’ sign; iv. Other configurations as approved by City Staff Wharf Committee. c. Location.
i. Signs should normally be located at or near pedestrian eye level. ii. Signs shall not project above the roof line or project over the sidewalk unless there is an 8’ high clearance over the sidewalk.
iii. Neon signs are permitted on building exteriors and in windows. iv. Other types of signs positioned in windows are discouraged in order to allow views into and through business spaces.

5.01. Sign Design Considerations.
a. Given the nature of the Wharf and its environs, marine-oriented themes are most appropriate.
b. Signs Painted Directly on Buildings - This type of sign lends itself well to buildings on the Wharf and could develop an overall visual theme. The size of such signs is dependent on the section of the building where they are proposed. Large wall sections could appropriately contain larger signs.
c. Signs Mounted on Building Walls - Useful for locations where painting directly on building walls is not desirable. Carved wooden or composite material signs with a marine-related theme can work well. Wall-mounted signs are to be flush with the building surface.
d. Individual Letters Mounted on the Building - Letters should not exceed 12” in height and should not project more than 2” from the building wall. Plastic letters are not allowed, nor are self-illuminated letters. Letters in colors that appropriately contrast with the background are most effective.
e. Neon Signs - Neon signs provide light, color, and vibrancy, and are especially effective after dark. Neon signs are appropriate for display in windows, provided that they are in scale with the window size and do not completely obscure views through the window. Neon signs may also be mounted directly on the building wall to supplement a painted sign. Flashing or blinking neon signs are not permitted. f. Iconic Signs - Iconic signs are hanging or projecting signs which depict a physical object such as an anchor or a boat, as contrasted with signs which utilize lettering to convey the sign’s message. Iconic signs that are in scale with the structure and use of

15.86

the building are most effective. Iconic signs may not present obstructions to pedestrian traffic, and an 8’ overhead clearance is required for any iconic sign overhanging a pedestrian walkway.
g. Window Signs - Painted signs or decals on glass should be designed so that views into and through the business are maintained.
h. Hanging Signs - Small hanging signs beneath an overhang or canopy may be approved if they are incidental and purposeful (e.g., advertising an “Annual Sale”). i. Sign Lighting - Flood lighting of signs is allowed provided that lights are directed away from pedestrians.
j. Banners and Flags - Banners, flags and pennants may be used for specific and limited purposes, but when used to excess may actually detract from the desired result. These advertising devices must be approved on a case-by-case basis. k. Temporary Signs and Posters - These advertising devices are generally discouraged but may be used for no longer than fourteen days at a time with prior approval. They may not obstruct views into and through buildings.
l. Menus - Food establishments may display menus securely fixed to the wall or in an enclosed display case. A display case may be lighted.
m. Addresses - All businesses should display clearly legible address numbers. They may be incorporated into signage as appropriate.
n. Sandwich Board and Movable Freestanding Signs - Are not permitted.

15.87

EXHIBIT G
Insurance Requirements
Tenant shall procure and maintain for the duration of the Lease, insurance against claims for injuries to persons or damages to property which may arise from or in connection with Tenant’s operation on, access to, and/or use of the Premises. The cost of such insurance shall be borne by Tenant.

A. Insurance Certificate Requirements.

Landlord will be issued 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, • Coverage and policy limits will meet, or exceed, requirements below, • The Certificate Holder will be City of Santa Cruz, Risk Management, 1200 Pacific Ave., Suite 290, Santa Cruz, CA 95060,
• Certificate will be signed by an authorized representative, • An endorsement, if required below, will be provided to show the Landlord, its officers, officials, employees, and volunteers as additional insureds, and • Coverages must be maintained during the Term of the Lease with the Landlord, unless a longer duration is required.

B. Minimum Scope and Limit of Insurance.

Tenant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. If Tenant maintains broader insurance coverage and/or higher limits than the minimums shown below, Landlord shall be entitled to the broader insurance coverage and/or higher limits maintained by Tenant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to Landlord.

Tenant shall maintain limits no less than the following:

1. Commercial General Liability (CGL): $2,000,000.00 per occurrence; $2,000,000 in the aggregate, including products and completed operations, property damage, bodily injury and personal & advertising injury insuring against all liability of Tenant and its employees, agents, representatives, subtenants, assignees and concessionaires arising out of and in connection with Tenant's use or occupancy of the Premises; and, if applicable, liability for the sale and distribution of liquor and alcoholic beverages.

2. “All Risk” Property Insurance Coverage. Tenant shall, at Tenant's sole expense, obtain and keep in full force and effect an insurance policy covering all of Tenant's personal property, trade fixtures, equipment and merchandise located in or upon the Premises in an amount sufficient to cover not less than one hundred percent (100%) of the replacement value thereof, providing protection against any peril included within including sprinkler damage, vandalism and malicious mischief endorsements ordinarily included in extended coverage casualty insurance policies. Tenant shall be solely responsible for any uninsured loss or damage caused to Tenant's personal property, trade fixtures, equipment and merchandise located in or upon the Premises for any reason.

3. Fire Insurance\Legal Liability Coverage. Tenant, at its sole cost, shall procure and maintain in full force and effect at all times during the Term of this Lease, fire and extended coverage insurance satisfactory to Landlord covering the Premises to keep all leased property or rented space, Tenant Improvements therein in an amount not less than one hundred percent (100%) of the full replacement cost against loss or destruction by fire and all perils, including vandalism, malicious mischief, special extended perils (“special form”). The property insurance is to be endorsed to include Legal Liability Coverage (ISO Form CP 00 40 04 02 or equivalent) with a limit equal to the replacement cost of the leased property. Landlord shall be named as an additional insured and loss payee on the policies. Any loss payable under any policy described in this section shall be paid by the insurance company to Landlord or as

15.88

otherwise agreed by the Parties to be used to fund the repair or replacement of the damaged Premises or improvement pursuant to this Lease. “Full replacement cost,” as used in this section, shall mean the actual cost of replacement for the building and other improvements on the Premises, as determined from time to time.

4. Business Interruption Insurance. Policy with adequate limits to cover the Term of this Lease and shall contain an inflation endorsement if the Premises or Tenant Improvements are destroyed or rendered inaccessible by a risk insured against by a policy of standard fire and extended coverage insurance, with vandalism and malicious mischief endorsements.

Insurance proceeds thereunder shall be payable to Landlord for loss of rents.

5. Workers’ Compensation and Employer’s Liability Insurance. Tenant shall obtain policies as required by applicable law against liability arising on account of injuries or death to workers or employees on the Premises or any Tenant Improvement. Such workers’ compensation insurance shall be in amounts at least equal to the maximum liability of Tenant, its agents, and contractors under the Workers’ Compensation Insurance and Safety Act of the State of California and the Federal Longshore and Harbor Workers’ Compensation Act, as applicable.

Tenant shall also maintain Employer’s Liability insurance with limits no less than One Million Dollars ($1,000,000) per accident for bodily injury or disease, $1,000,000 disease – policy limit, $1,000,000 disease – each employee. Such insurance shall include a waiver of subrogation in favor of Landlord.

C. Other Insurance Provisions.

ADDITIONAL INSURED STATUS
Landlord, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Tenant, including materials, parts, or equipment furnished in connection with such work or operations, products and completed operations.

General liability coverage will be provided in the form of an endorsement to Tenant’s insurance at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 (if a later edition is used).

PRIMARY COVERAGE
For any claims related to this Lease, Tenant’s insurance coverage will be primary and non-contributory as respects Landlord, its officers, officials, and employees. Any insurance or self-insurance maintained by Landlord, its officers, officials, and employees will be excess of Tenant’s insurance and will not contribute with it.

NOTICE OF CANCELLATION
Each insurance policy required above shall state that the coverage shall not be canceled, except with notice to Landlord.

WAIVER OF SUBROGATION
Tenant hereby grants to Landlord a waiver of any right to subrogation, except as otherwise not applicable, which any insurer of said Tenant may acquire against Landlord by virtue of the payment of any loss, including attorney’s fees under such insurance. Tenant agrees to obtain any endorsement that may be necessary to effectuate this waiver of subrogation, but this provision applies regardless of whether or not Landlord has received a waiver of subrogation endorsement from the insurer.

EXCESS LIABILITY/UMBRELLA INSURANCE POLICIES
Tenant may use excess liability/umbrella policies to meet the required liability limits on the condition that they provide all of the insurance coverages required herein, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The excess liability/umbrella insurance policies shall be provided on a true “following form” or broader coverage basis, with

15.89

coverage at least as broad as provided on the underlying CGL insurance. No insurance policies maintained by the additional insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until Tenant’s primary and excess liability policies are exhausted.

SELF-INSURED RETENTIONS (SIR)
Self-insured retentions must be declared to and approved by Landlord. Landlord may require Tenant to purchase coverage with a lower retention or provide proof of ability to pay losses and related expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or Landlord.

ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:

VII, unless otherwise acceptable to Landlord.

VERIFICATION OF COVERAGE
Tenant will furnish Landlord with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL, and any Excess Liability/Umbrella policies, as applicable, listing all policy endorsements to be approved by the Landlord before the Lease begins. However, failure to obtain the required documents prior to the Lease beginning will not waive Tenant’s obligation to provide them. Landlord reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

SUBCONTRACTORS
Tenant shall include their subcontractor(s) as additional insured(s) under the policies or shall furnish separate certificates and endorsements for each contractor and subcontractor for any work related to the Premises. Tenant shall require and verify that all contractors and subcontractors maintain insurance meeting all the requirements stated herein, and Tenant shall ensure that Landlord, its officers, officials, employees, agents, and volunteers are named as additional insureds on insurance required from its contractor(s) and subcontractor(s).

SPECIAL RISKS/CIRCUMSTANCES
Landlord reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances and provide notice to Tenant.

15.90

EXHIBIT H
Description of Landlord and Tenant Work
Intentionally Omitted

15.91 1

MEMORANDUM OF LEASE

RECORDING REQUESTED BY )
AND WHEN RECORDED MAIL TO: )
)
City of Santa Cruz )
337 Locust Street )
Santa Cruz, CA 95060 )
Attn: Director of Economic Development )
)
Exempt from Recording Fees Pursuant to Government Code Section 27383

MEMORANDUM OF LEASE
This Memorandum of Lease (“Memorandum”) is hereby entered into as of ____________, 2026, by and between the City of Santa Cruz, a California municipal corporation and charter city, (“Landlord”), and Socksmith Design, Inc. (“Tenant”) (collectively the “Parties”).

RECITALS
A. Landlord and Tenant have entered into that certain Lease (the “Lease”) dated _____________, for the building designated as 17-E Municipal Wharf, Santa Cruz, California (the “Premises”). A copy of the Lease is available for public inspection upon request at Landlord's office at 337 Locust Street, Santa Cruz, California. The Lease is for a term of five (5) years terminating on June 30, 2031, with the option to extend the term for two (2) additional five (5) year periods.

B. Pursuant to Government Code section 37393, this Memorandum shall be executed and recorded in the Official Records of Santa Cruz County, California.

NOW, THEREFORE, the Parties hereto certify as follows:

Landlord, pursuant to the Lease, hereby leases the Premises to the Tenant upon the terms and conditions provided for therein. The Lease imposes certain obligations, requirements on the Tenant, and limitations on the use of the Premises. This Memorandum is not a complete summary of the Lease and shall not be used to interpret the provisions of the Lease. [SIGNATURES ON FOLLOWING PAGE]

15.92 2
IN WITNESS WHEREOF, the Parties have caused this Memorandum to be executed by their lawfully authorized representatives.

LANDLORD:

CITY OF SANTA CRUZ, a California municipal corporation and charter city By:____________________________________ Date:___________ Matt Huffaker
City Manager
TENANT:

Socksmith Design, Inc.

By: ________ Date:__________
Eric Gil, President

By:________________________ Date:__________
Ellen Gil, Secretary
APPROVED AS TO FORM:

By: ___________________
Office of the City Attorney

15.93 3

CERTIFICATE OF ACKNOWLEDGMENT OF NOTARY PUBLIC
State of California)
County of Santa Cruz)
On ______________________ before me, , Notary
Public, personally appeared __________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
(This area for official notary seal)
Signature ______________________________
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

15.94 4

CERTIFICATE OF ACKNOWLEDGMENT OF NOTARY PUBLIC
State of California)
County of Santa Cruz)
On ______________________ before me, , Notary
Public, personally appeared __________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
(This area for official notary seal)
Signature ______________________________
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

15.95 5

CERTIFICATE OF ACKNOWLEDGMENT OF NOTARY PUBLIC
State of California)
County of Santa Cruz)
On ______________________ before me, , Notary
Public, personally appeared __________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
(This area for official notary seal)
Signature ______________________________
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

15.96 City Council

AGENDA REPORT
DATE: 05/20/2026
AGENDA OF: 06/09/2026
DEPARTMENT: Economic Development
SUBJECT: Owners Representative Contract for the Coral Street Substance Use Disorder Navigation Center (ED)
LOCATION: District 5
RECOMMENDATION: Motion to:
1) Authorize the City Manager, or designee, to execute a contract with Ausonio Incorporated for Owners Representative services, in an amount not to exceed $405,593, and any related documents in a form to be approved by the City Attorney; and 2) Authorize the Deputy City Manager, or designee, to execute amendments or change orders with Ausonio Incorporated within the approved budget of the Navigation Center BHCIP Project (c512602).

BACKGROUND: The California Department of Health Care Services (DCHS) launched the Behavioral Health Continuum Infrastructure Program (BHCIP), a bond funded program, to address historic gaps in the behavioral health care continuum and meet the growing demand for services and support across the life span of vulnerable individuals in need. Proposition 1, the Behavioral Health Infrastructure Bond Act of 2024, created a new source of infrastructure funding in the State of California (State).

In December 2024, City Council authorized the submission of a BHCIP grant application, in an amount not to exceed $30,000,000, and the execution of a Program Funding Agreement. In May 2025, the DCHS Bond BHCIP notified the City it was awarded the grant, in the amount of $30,000,000, to fund the proposed 50 bed residential substance use disorder (SUD) facility. The project will be known as the Coral Street SUD Navigation Center. The Program Funding Agreement was fully executed on January 27, 2026.

In February 2026, City Council authorized execution of a contract with NJA Architecture for design services. That work was initiated and is ongoing.

DISCUSSION: In March 2026, a request for proposals (RFP) was released for owner’s representative services to support the Coral Street SUD Navigation Center Project. Seven

16.1 proposals were received. The California Government Code Section 4526 qualifications-based selection model for procurement of owner’s representative services by state and local agencies mandates selection on the basis of demonstrated competence and professional qualifications, with fees to be negotiated later with the most highly qualified firm.

Proposals were evaluated based on the criteria in the RFP. The most qualified proposal was submitted by Ausonio Incorporated, an award-winning commercial construction company, general contractor & design-build specialist. They collaborate with owners and architects to provide single-source services, with an effort to reduce delays and increase cost savings. The firm is based out of Castroville and has firsthand experience with BHCIP funded projects, including their most recently completed project, Encompass-Si Se Puede, in Watsonville. Their client roster ranges from Santa Cruz, Monterey and San Benito counties, with projects that also include schools, community centers, shopping centers, and public libraries.

A fee in the amount not to exceed $405,593 was determined to be mutually acceptable by both parties to compensate for services through Phase One of Design & Procurement including Reimbursable Expenses.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: This specific Council action is not a “project” under CEQA, as the City will simply be contracting for owner’s representative support services through Phase One of Design and Procurement. With that said, the proposed facility will likely qualify for a CEQA exemption under 1 or more categories, including: the class 32 Categorical Exemption (applies to infill projects that are consistent with all applicable general plan policies and zoning criteria under 14 CCR Section 15332); statutory exemption under Welfare and Institutions Code section 5960.3(b) (Projects funded by Behavioral Health Continuum Infrastructure Program grants); and Gov. Code Section 65662 (CEQA does not apply to the approval of a “low barrier navigation center” to provide transitional housing for the homeless. Such centers are allowed by right in mixed use and nonresidential zones permitting multifamily uses).

HEALTH IN ALL POLICIES (HiAP): The proposed project is consistent with the Health in All Policies pillars of equity, public health, and sustainability. The proposed Coral Street residential facility would serve some of the most challenged unhoused individuals in the City, providing on site substance use disorder treatment for multiple levels of care per the American Society of Addiction Medicine (ASAM). The proposed project would permit individuals to stay within the community for treatment and receive wrap-around services instead of having to wait for a treatment bed to become available someplace else.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: No

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: Funds are available and budgeted in the Economic Development Capital Investment Program (CIP): Navigation Center BHCIP Project (c512602).

16.2 Prepared By:

Kathryn Mintz
Development Manager
Submitted By:

Bonnie Lipscomb
Deputy City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. AUSONIO INCORPORATED DRAFT CONTRACT AGREEMENT.DOCX

16.3 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0277 May 2026 (Form Rev.03/25 ) Page 1
Professional Services Agreement With

AUSONIO INCORPORATED
For

CORAL STREET RESIDENTIAL SUBSTANCE USE DISORDER NAVIGATION CENTER THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) for professional services is made by and between the City of Santa Cruz (“City”) and Ausonio Incorporated (“Consultant”) (each is referred to individually as a “Party” and collectively, as the “Parties”) as of ____________, 20__ (the “Effective Date”).

NOW, THEREFORE, in consideration of each other’s mutual promises, the Parties hereto agree as follows:

SECTION 1: SCOPE OF WORK
Consultant will furnish services as defined and described in the Scope of Work, attached hereto as Exhibit A and incorporated herein.

SECTION 2: RESPONSIBILITIES OF CONSULTANT
All services performed by Consultant, or under Consultant’s direction, shall be rendered in accordance with the generally accepted practices, and to the standards of, Consultant's profession. Consultant represents and agrees that Consultant: (i) is fully experienced and properly qualified to perform the work and services provided for herein, (ii) has the financial capability required for the performance of the work and services, and (iii) is properly equipped and organized to perform the work and services in a competent, timely, and workmanlike/professional manner, in accordance with the requirements of this Agreement.

Consultant shall not undertake any work beyond the Scope of Work Phase One Pre-Development: Design and Procurement set forth in Exhibit A unless such additional work is approved in advance and in writing by City. City shall compensate Consultant for such additional work on the same basis as provided for in Section 4.

If, in performing the services, it is necessary to conduct field operations, security and safety of the job site will be the Consultant's responsibility excluding, the security and safety of any facility of City within the job site which is not under the Consultant’s control or authority.

Consultant shall meet with Bonnie Lipscomb, Deputy City Manager, hereinafter called "Director", or other designated and authorized City personnel, and/ or third parties as necessary, on all matters connected with carrying out Consultant’s services described in Exhibit A. Such meetings shall be held at the request of either Party.

Consultant shall obtain City’s review and acceptance of completed work monthly, or at other intervals as may be mutually agreed upon during the term of this Agreement. Review or acceptance of Consultant’s work by City or its designee shall not relieve Consultant from responsibility for errors and omissions in Consultant’s work.

SECTION 3: RESPONSIBILITIES OF THE CITY
City shall make available to Consultant all data and information in the City’s possession necessary to carrying out and completing the services and shall actively assist Consultant in obtaining such information from other agencies and individuals as needed. Consultant is entitled to reasonably rely upon the accuracy and completeness of such data and information, and Consultant shall provide City prompt written notice of any known defects in such data and information.

The Director may authorize a City staff person to serve as their representative with respect to this Agreement.

Consultant’s work shall be reviewed at such intervals as may be mutually agreed upon between the Parties. The City will be the sole judge of acceptable work, provided that such approval will not be unreasonably withheld or

16.4 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0277 May 2026 (Form Rev.03/25 ) Page 2
delayed. If the work is not acceptable, City will inform Consultant of the changes or revisions necessary to secure acceptance.

SECTION 4: FEES AND PAYMENT
For services actually performed, the City will compensate Consultant at the rates set forth in the Fee Schedule detailed in Exhibit B with the terms set forth therein. Payment for Consultant's services in carrying out the entire Scope of Work shall be made within the budget limit, or limits shown, upon Exhibit B for Phase One Design & Procurement and Reimbursable Expenses.

Consultant agrees that the payments to Consultant specified in this Section 4 will constitute full and complete compensation for all obligations assumed by Consultant under this Agreement. Such payments shall be considered the full compensation for all personnel, materials, supplies, and equipment used by Consultant in the Scope of Work. Where conflicts regarding compensation may occur, the provisions of this section shall apply.

Variations from the budget for each task which are justified by statements indicating personnel time expended and submittal of a revised budget are only allowed with prior City approval; however, in no event shall the total fee charged for the Scope of Work set forth in Exhibit A for the Phase One Design & Procurement and Reimbursable Expenses exceed the contract budget of $405,593 without advance written City authorization in the form of an amendment or change order.

Invoices shall detail the time worked by each class of employee on each task and the expenses incurred for which billing is made. Invoices shall indicate the percentage completion of each work task as identified in the Scope of Work in Exhibit A and the overall percentage of completion of the total required services. Unless otherwise specified in the fee schedule, payments shall be made monthly by the City within 30 days based on itemized invoices from the Consultant which list the actual costs and expenses.

All invoices shall contain the following affidavit signed by Consultant (if individual) or by an authorized representative of Consultant (if Consultant is an entity):
“[I] or [As an authorized representative of Consultant, I] hereby certify that the charge of (Insert invoice amount) as summarized above and shown in detail on the attachments is in accordance with the terms of the Agreement by and between the City of Santa Cruz and (Insert Party Name) dated (Insert Agreement Date), and has not been previously paid." This Agreement is contingent upon the appropriation of sufficient funding by the City and state for the Scope of Work covered by this Agreement. If funding is reduced or deleted for the Scope of Work covered by this Agreement, the City has the option without penalty or liability to either terminate this Agreement or to offer an amendment to this Agreement indicating any reduced amount.

SECTION 5: TRAVEL REIMBURSEMENT POLICY
The City shall not be responsible for any travel, meal, or lodging reimbursements to Consultant and/or Consultant’s employees.

SECTION 6: CHANGES IN WORK
City may negotiate changes to the Scope of Work. No changes to the Scope of Work shall be made without the prior written agreement between City and Consultant. Any change requiring compensation in excess of the sum specified in Exhibit B shall be approved in advance in writing by the City. Only City’s authorized representative(s) is authorized to approve changes to this Agreement on behalf of City.

SECTION 7: TERM AND SCHEDULE

16.5 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0277 May 2026 (Form Rev.03/25 ) Page 3
The term of this Agreement shall commence on the effective date of this Agreement and terminate on or upon completion of the Scope of Work.

Consultant shall begin the Scope of Work as specified in a written authorization (e.g., Notice to Proceed) to perform services issued by the City. The written authorization to perform work shall not be issued until after this Agreement has been approved and executed by the City.

The Work Schedule for completion of the work shall be as shown upon Exhibit C. In the event there are major changes to the Scope of Work, the schedule for completion as stated in Exhibit C may be adjusted with the City’s approval to allow Consultant a reasonable period of time within which to complete any additional work which may be required as a result of the changes to the Scope of Work.

Neither party shall be held responsible for delay or default caused by declared emergencies, natural disasters, or any Force Majeure event which is beyond the party's reasonable control. Consultant will, however, make all reasonable efforts to remove or eliminate such a cause of delay or default and will, upon the cessation of the cause, diligently pursue performance of its obligations under this Agreement.

The City reserves the right to obtain the item(s) and/or services covered by this Agreement from another source during any on-going suspension of service due to the circumstances outlined above.

Consultant acknowledges that it is necessary for Consultant to complete its work on or before the completion date set forth in Exhibit C in order to allow the City to achieve its objectives for entering into this Agreement. The Parties therefore agree that time is of the essence in the performance of this Agreement.

SECTION 8: TERMINATION
The City may terminate the Agreement for any reason by providing written notice to Consultant not less than 10 calendar days prior to an effective termination date.

The City may, at its option, allow Consultant to cure its failure to perform within 10 business days (or longer period authorized in writing by the City) from the date of the City’s termination notice. The termination shall be become effective if Consultant has not cured within the specified time period to the City’s satisfaction.

Consultant may terminate this Agreement for cause if the City fails to cure a material default in performance of its obligations under this Agreement within a period of 30 calendar days (or such longer period agreed to by the Consultant), from the date of the Consultant’s written termination notice specifying the default in performance.

Consultant must provide a written notice of termination to the City not less than 60 calendar days of the effective termination date.

Upon notice of termination by either the City or Consultant, the Consultant will immediately act to not incur any additional obligations, costs or expenses, except as may be reasonably necessary to terminate its activities. The City’s only obligation to the Consultant will be just and equitable payment for services authorized by, and received to the satisfaction of, the City up to and including the effective date of termination less any amounts withheld. All finished or unfinished work or documents procured or produced under the Agreement will become property of the City upon the termination date. In the event of Consultant’s failure to perform pursuant to the Agreement, the City reserves the right to obtain services elsewhere and Consultant will be liable for the difference between the prices set forth in the terminated Agreement and the actual cost to the City. Termination of the Agreement pursuant to this paragraph shall not relieve the Consultant of any liability to City for additional costs, expenses, or damages sustained by City due to failure of the Consultant to perform pursuant to the Agreement. City may withhold any payments to Consultant for the purpose of set-off until such time as the exact amount of damages due City from Consultant is

16.6 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0277 May 2026 (Form Rev.03/25 ) Page 4
determined. After the effective date of termination, Consultant will have no further claims against the City under the Agreement. No other compensation will be payable for anticipated profit on unperformed services.

SECTION 9: INSURANCE
Prior to the beginning of and throughout the duration of the Agreement, Consultant will maintain and comply with the Insurance Requirements as set forth in Exhibit D. Consultant will insure the City against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder. The insurance coverages required shall not in any way limit the liability of the Consultant.

SECTION 10: INDEMNIFICATION
Consultant agrees, to the fullest extent permitted by law, to indemnify, defend, and hold harmless the City, its officials, officers, employees, agents, and volunteers (collectively, “Indemnitees”) from and against any and all liability, claim, action, loss, injury, damage, judgment, or expense, including attorneys’ fees and costs (“Losses”) caused by or resulting from the negligence, recklessness, or willful misconduct of Consultant, Consultant’s officers, employees, agents, or subcontractors in any way related to this Agreement. Consultant’s duty to indemnify and hold harmless Indemnitees shall not apply to the extent such Losses are caused by the sole or active negligence or willful misconduct of Indemnitees. Consultant’s obligation to defend shall arise regardless of any claim or assertion that Indemnitees caused or contributed to the Losses.

In the event this Agreement involves the performance of design professional services by Consultant, Consultant’s officers, employees, agents, or subcontractors, Consultant’s costs to defend Indemnitees shall not exceed the Consultant’s proportionate percentage of fault per Civil Code §2782.8. This section shall survive the termination or expiration of this Agreement.

SECTION 11: EQUAL EMPLOYMENT OPPORTUNITY/NON-DISCRIMINATION POLICIES City’s policies promote a working environment free from abusive conduct, discrimination, harassment, and retaliation; and require equal opportunity in employment for all regardless of race, religious creed (including religious dress and grooming practices), color, national origin (including language use restrictions), ancestry, religion, disability (mental and physical), medical condition, sex, gender (including gender identity and gender expression), physical characteristics, marital status, age, sexual orientation, genetic information (including family health history and genetic test results), organizational affiliation, and military or veteran status, or any other consideration made unlawful by local, State or Federal law. City requires Consultant to comply with all applicable Federal and State and local equal employment opportunity laws and regulations, and Consultant is responsible for ensuring that effective policies and procedures concerning the prevention of abusive conduct, discrimination, harassment, and retaliation exist in Consultant’s business organization. The City’s current Equal Employment Opportunity and Non-Discrimination policies to which this Section applies may be viewed at http://www.codepublishing.com/CA/SantaCruz/?SantaCruz09/SantaCruz0983.html and https://www.santacruzca.gov/Government/City-Departments/Human-Resources/Equal-Employment-OpportunityEEO.

SECTION 12: LEGAL ACTION/ATTORNEYS’ FEES
If any action at law or in equity is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief. The laws of the State of California, with jurisdiction in the Santa Cruz County Superior Court, shall govern all matters relating to the validity, interpretation, and effect of this Agreement and any authorized or alleged changes, the performance of any of its terms, as well as the rights and obligations of Consultant and the City.

SECTION 13: AMENDMENTS

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This Agreement may not be amended in any respect except by way of a written instrument which expressly references and identifies this particular Agreement, which expressly states that its purpose is to amend this particular Agreement, and which is duly executed by the City and Consultant. Consultant acknowledges that no such amendment shall be effective until approved and authorized by the City’s authorized representative. No representative of the City is authorized to obligate the City to pay the cost or value of services beyond the scope of services set forth in Exhibit A.

Such authority is retained solely by the City Manager, Director, or their designee. Unless expressly authorized by the City Manager or Director, Consultant’s compensation shall be limited to that set forth in Exhibit B, Fee Schedule.

SECTION 14: MISCELLANEOUS PROVISIONS

1. Project Manager/Key Staff. Director reserves the right to evaluate and confer with Consultant regarding the project manager or other key staff assigned by Consultant to perform the work under this Agreement. Consultant shall replace the project manager or key staff upon Director’s request due to Director’s concern about their performance.

Otherwise, no change in assignment by the Consultant may occur without prior written approval of the City.

2. Consultant Services Only. Consultant is employed to render professional services only and any payments made to Consultant are compensation solely for such professional services.

3. Independent Contractor. In the performance of this Agreement, it is expressly understood that Consultant, including each of Consultant’s employees, agents, subcontractors or others under Consultant’s supervision or control, is an independent contractor solely responsible for its own acts and omissions, and shall not be considered an employee of the City for any purpose. Consultant agrees to indemnify, defend and hold harmless the City, its officials, officers, employees, and agents against any claim or liability, including attorneys’ fees and costs, arising in any manner related to this Agreement that an employee, agent or others under Consultant’s supervision or control was misclassified.

In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

4. Consultant Not an Agent. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.

5. Subcontractors. Consultant shall obtain prior approval of the City prior to subcontracting of any work pursuant to this Agreement. If at any time, the City determines any subcontractor is incompetent or unqualified, Consultant will be notified and will be expected to immediately cancel the subcontract. Consultant shall require and verify that all subcontractors maintain insurance meeting all of the requirements stated herein, including naming the City of Santa Cruz, its officers, officials, employees, agents, and volunteers as additional insureds. Any modification to the insurance requirements for subcontractors must be agreed to by the City in writing.

Consultant shall be as fully responsible to the City for the negligent acts and omissions of its contractors and subcontractors or subconsultants, and of persons either directly or indirectly employed by them, or acting on Consultant’s behalf pursuant to this Agreement, as it is for the acts and omissions of persons directly employed by Consultant. Consultant’s obligation to pay its subconsultants is an independent obligation from the City’s obligation to make payments to the Consultant.

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6. Assignment. This Agreement shall not be assigned without first obtaining the express written consent of the Director or after approval of the City Council. Neither party may assign this Agreement unless this Agreement is amended in accordance with its terms.

7. Conflicts of Interest. Consultant agrees to comply with conflict of interest laws in performing the work and services under this Agreement. Consultant covenants (on behalf of Consultant and Consultant’s employees, agents, representatives, and subcontractors) that there is no direct or indirect interest, financial or otherwise, which would conflict in any manner or degree with the performance of services required under this Agreement. Consultant acknowledges and agrees to comply with applicable provisions of conflict of interest law and regulations, including the CA Political Reform Act, (Gov’t. Code §§1090, 87100), Levine Act (Gov’t. Code §84308), and the City’s conflict of interest code. Consultant will immediately advise City if Consultant learns of a conflicting financial interest of Consultant during the term of this Agreement.

8. City Property. The work, or any portion, of Consultant in performing this Agreement shall become the property of City. The Consultant may be permitted to retain copies of such work for information and reference in connection only with the provision of services for the City. All materials and work product, whether finished or unfinished, shall be delivered to City upon completion of contract services or termination of this Agreement for any reason.

Consultant acknowledges and agrees that the work product shall be considered a work made for hire within the meaning of the patent and copyright laws of the United States; and Consultant agrees that all copyrights which arise from creation of project-related documents and materials pursuant to this Agreement shall be vested in the City and Consultant waives and relinquishes all claims to copyright or other intellectual property rights in favor of City. Any work product related to this Agreement shall be confidential, not to be used by the Consultant on other projects or disclosed to any third party, except by agreement in writing by the City, or except as otherwise provided herein.

Consultant’s final deliverables shall comply with Section 508 (29 U.S.C. Section 794d) accessibility requirements, as applicable. Notwithstanding any other provision of this Agreement to the contrary, Consultant shall retain the rights in any pre-existing standard drawing details, designs, specifications, databases, computer software, proprietary information, documents, templates, and any other property owned by Consultant on the date of this Agreement or developed outside of this Agreement.

9. Intellectual Property and Indemnity.
a. Consultant represents to City that, to the best of Consultant’s knowledge, any Intellectual Property (including but not limited to: patent, patent application, trade secret, copyright and any applications or right to apply for registration, computer software programs or applications, tangible or intangible proprietary information, or any other intellectual property right) in connection with any services and/or products related to this Agreement does not violate or infringe upon any Intellectual Property rights of any other person or entity. b. To the fullest extent permitted by law, Consultant agrees to indemnify, defend, and hold harmless City, its officials, officers, employees, and agents, from any and all claims, demands, actions, liabilities, damages, or expenses (including reasonable attorneys’ fees and costs) arising out of a claim of infringement, actual or alleged, direct or contributory, of any Intellectual Property rights in any way related to Consultant’s performance under this Agreement or to the City’s authorized intended or actual use of Consultant’s product or service under this Agreement. This provision shall survive termination or expiration of this Agreement. c. If any product or service becomes, or in the Consultant’s opinion is likely to become, the subject of a claim of infringement, the Consultant shall, at its sole expense: (i) provide the City the right to continue using the product or service; or (ii) replace or modify the product or service so that it becomes non-infringing; or (iii) if none of the foregoing alternatives are possible even after Consultant’s commercially reasonable efforts, in addition to other available legal remedies, City will have the right to return the product or service and receive a full or

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partial refund of an amount equal to the value of the returned product or service, less the unpaid portion of the purchase price and any other amounts, which may be due to the Consultant. City shall have the right to retrieve its data and proprietary information at no charge prior to any return of the product or termination of service.

10. Confidentiality.
a. Consultant shall not acquire any ownership interest in data and information (“City Data”) received by Consultant from City, which shall remain the property of the City. Certain information may be considered confidential (“Confidential Information”). Confidential Information shall mean all information or proprietary materials (in every form and media) not generally known to the public and which has been or is hereafter disclosed or made available directly or indirectly to Consultant through any means of communication, either verbally or in writing even if it has not been designated in writing as “Confidential” to Consultant in connection with this Agreement. Unless otherwise required by law, Consultant shall not, without City’s written permission, use or disclose City Data and/or Confidential Information other than in the performance of the obligations under this Agreement. As between Consultant and City, all City Confidential Information shall remain the property of the City. Consultant shall not acquire ownership interest in the City’s Confidential Information. b. Consultant shall be responsible for ensuring and maintaining the security and confidentiality of City Data and Confidential Information, protect against any anticipated threats or hazards to the security or integrity of City Data and Confidential Information, protect against unauthorized access to or use of City Data and Confidential Information that could result in substantial harm or inconvenience to City or any end users; and ensure the proper return and/or disposal of City Data and Confidential Information upon termination of this Agreement with notice to the City.
c. Consultant shall take appropriate action to address any incident of unauthorized access to City Data and Confidential Information, including addressing and/or remedying the issue that resulted in such unauthorized access, notifying City as soon as possible of any incident of unauthorized access to City Data and Confidential Information, or any other breach in Consultant’s security that materially affects City or end users; and be responsible for ensuring compliance by its officers, employees, agents, and subcontractors with the confidentiality provisions hereof. Should confidential and/or legally protected City Data be divulged to unauthorized third parties, Consultant shall comply with all applicable federal and state laws and regulations, including but not limited to California Civil Code sections 1798.29 and 1798.82 at Consultant’s sole expense.

Consultant shall not charge City for any expenses associated with Consultant’s compliance with these obligations.
d. Consultant shall defend, indemnify and hold harmless City, its officials, officers, employees and agents against any claim, liability, loss, injury or damage (including attorneys’ fee and costs) arising out of, or in connection with, the unauthorized use, access, and/or disclosure of City Data and/or Confidential Information by Consultant and/or its agents, employees or subcontractors, excepting only loss, injury or damage caused by the sole negligence or willful misconduct of the City. This provision shall survive the termination or expiration of this Agreement.

11. Consultant's Records/Audits. Consultant shall maintain accurate accounting records and other written documentation pertaining to the costs incurred relating to this Agreement for examination and audit by the City, State, or federal government, as applicable, in compliance with Gov. Code §8546.7 for a contract in excess of $10,000, or in compliance with other applicable federal laws (e.g. 48 CFR 31) or regulations for a period of three (3) years from: the date of the final City payment for Consultant's services, or from the date of final disposition of real property or equipment acquired with federal funds, or date of the termination of this Agreement, whichever is later. If Consultant engages a subcontractor to perform work related to this Agreement with a cost of $10,000 or

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more over a 12-month period, such subcontract shall contain these same requirements. This provision shall survive the termination of this Agreement.

12. California Public Records Act. City is a public agency subject to the disclosure requirements of the California Public Records Act (“CPRA”). If Consultant’s proprietary information is contained in documents or information submitted to City, and Consultant claims that such information falls within one or more CPRA exemptions, Consultant must clearly mark such information “Confidential and Proprietary,” and identify the specific lines containing the information. In the event of a request for such information, City will make best efforts to provide notice to Consultant prior to such disclosure. If Consultant contends that any documents are exempt from the CPRA and wishes to prevent disclosure, it is required to obtain a protective order, injunctive relief, or other appropriate remedy from a court of law in Santa Cruz County before the City is required to respond to the CPRA request. If Consultant fails to obtain such remedy within the time the City is required to respond to the CPRA request, City may disclose the requested information without any liability. Consultant further agrees that it shall defend, indemnify and hold City harmless against any claim, action or litigation (including but not limited to all judgments, costs, and attorney’s fees) that may result from denial by City of a CPRA request for information arising from any representation, or any action (or inaction), by the Consultant.

13. Compliance with Laws. All activities of Consultant, its employees, subcontractors and/or agents will be carried out in compliance with all applicable federal, state, and local laws and regulations. Consultant further agrees to comply with the covenant of good faith and fair dealing and other provisions of Santa Cruz Municipal Ordinance chapter 3.09, or otherwise Consultant may be subject to penalties including being declared an irresponsible contractor.

14. Licensure. Consultant agrees that Consultant, its subcontractors and/or agents (if any) has/have complied with all applicable federal, state, and local licensing requirements and agrees to provide proof of a current City of Santa Cruz Business Tax Certificate if:
 Consultant, its subcontractor(s) and agent(s) or its business is/are located in the City of Santa Cruz;  Will perform actual work in the City of Santa Cruz for 6 or more days annually; or  Will use company vehicles to deliver within the City of Santa Cruz for 6 or more days annually.

For additional information and licensing requirements, view the City’s Business Licenses and Permits webpage or call the Revenue and Taxation division at 831/420-5070.

15. Living Wage. Every contract for services to the City for $10,000 or more, is subject to City of Santa Cruz Living Wage Ordinance number 2000-25. If applicable, Consultant agrees to comply with the requirements of the Living Wage ordinance as provided in Santa Cruz Municipal Code Chapter 5.10.

16. Prevailing Wages for Public Work. To the extent that the work or services to be performed under this Agreement may be considered a “public work” (construction, alteration, demolition, or repair work) pursuant and subject to Labor Code section 1720 et seq., Consultant (and any subconsultant performing the work or services) shall conform to any and all prevailing wage requirements applicable to such work/and or services under this Agreement. Consultant (and any subconsultant) shall adhere to the prevailing wage determinations made by the Director of Industrial Relations (DIR) pursuant to California Labor Code Part 7, Chapter 1, Article 2, applicable to the work, if any. All workers employed in the execution of a public works contract (as such term is defined California Labor Code section 1720 et seq. and section 1782(d)(1)) must be paid not less than the specified prevailing wage rates for the type of work performed. (CA Labor Code sections 1720, 1774 and 1782.) To the extent applicable to the scope of work and services under this Agreement, Consultant agrees to be bound by the state prevailing wage requirements, including, but not limited to, the following:
a. If a worker is paid less than the applicable prevailing wage rate owed for a calendar day (or any portion thereof), Consultant shall pay the worker the difference between the prevailing wage rate and the amount

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actually paid for each calendar day (or portion thereof) for which the worker(s) was paid less than the prevailing wage rate, as specified in Labor Code section 1775; b. Consultant shall maintain and make available payroll and worker records in accordance with Labor Code sections 1776 and 1812;
c. If Consultant employs (and/or is legally required to employ) apprentices in performing the work and/or services under this Agreement, Consultant shall ensure compliance with Labor Code section 1777.5; d. Consultant is aware of the limitations imposed on overtime work by Labor Code sections 1810 et seq. and shall be responsible for any penalties levied in accordance with Labor Code section 1813 for failing to pay required overtime wages;
e. Consultant shall post a copy of the applicable wage rates at each jobsite at a location readily available to its workers.
f. Any failure of Consultant and/or its subconsultant to comply with the above requirements relating to a public work project shall constitute a breach of this Agreement that excuses the City’s performance of this Agreement at the City’s sole and absolute option and shall be at the sole risk of Consultant. Consultant on behalf of itself and any subconsultant, agree to indemnify, defend and hold harmless the City and its officials, officers, employees, and agents from and against any and all claims, liabilities, losses, costs, expenses, attorney’s fees, damages, expenses, fines, financial consequences, interest, and penalties, of any kind or nature, arising from or relating to any failure (or alleged failure) of the Consultant and any subconsultant to pay prevailing wages or to otherwise comply with the requirements of prevailing wage law relating to a public work.
g. Consultant acknowledges that it and/or any subconsultant may not engage in the performance of any contract for public work unless currently registered with the DIR and qualified to perform public work pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].

17. Storm Water Requirements. To the extent applicable to the Scope of Work under this Agreement, Consultant, Consultant’s employees, subcontractors, and agents are required to abide by the applicable City of Santa Cruz Storm Water Best Management Practices (BMPs) for the duration of the work. The City’s mandatory Storm Water BMPs, which are listed according to the type of work, operations, or business, are located on the City website at: https://www.santacruzca.gov/Government/City-Departments/Public-Works/Stormwater/City-ofSanta-Cruz-Storm-Water-Management-Plan

18. Dispute Resolution. The Parties agree to attempt in good faith to resolve through negotiation any dispute, claim or controversy arising out of or relating to this Agreement. Either party may initiate negotiations by providing written notice in letter form to the other party, setting forth the subject of the dispute and the relief requested.

Promptly upon such notification, the Parties shall meet at a mutually agreeable time and place in order to exchange relevant information and perspective, and to attempt to resolve the dispute. In the event that no resolution is achieved, and if, but only if, the parties mutually agree, then prior to pursuing formal legal action, the parties shall make a good faith effort to resolve the dispute by non-binding mediation or negotiations between representatives with decision-making power, who, to the extent possible, shall not have had substantive involvement in the matters of the dispute. To the extent that the dispute involves or relates to a public works project, the Parties agree to attempt to resolve the dispute by complying with the claims process as set forth in Public Contract Code sections 9204(e), 20104-20104.6, but without waiving the requirements of the California Tort Claims Act, Gov’t Code section 800 et seq. unless otherwise agreed to by the Parties.

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19. Force Majeure. Neither party hereto shall be considered in default in the performance of its obligation hereunder to the extent that the performance of any such obligation is prevented or delayed by an act of God, natural disaster, pandemic, acts of terrorism, war, a strike, lockout or other labor difficulty, or other peril, which is beyond the reasonable control of the affected party and without the negligence of the respective Parties. Each party hereto shall give notice promptly to the other of the nature and extent of any Force Majeure claimed to delay, hinder or prevent performance of the services under this Agreement. Each Party will, however, make all reasonable efforts to remove or eliminate such a cause of delay or default and will, upon the cessation of the cause, diligently pursue performance of its obligations in this Agreement. In the event either party is prevented or delayed in the performance of its respective obligation by reason of such Force Majeure, the only remedy is that there may be an equitable adjustment of the schedule based on City’s sole discretion.

20. Complete Agreement. This Agreement, along with any attachments, is the full and complete integration of the Parties’ agreement with respect to the matters addressed herein, and that this Agreement supersedes any previous written or oral agreements between the Parties with respect to the matters addressed herein. Unless otherwise stated, to the extent there is any conflict between this Agreement and any other agreement (written or oral), the terms of this Agreement shall control.

21. Severability. The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the other provisions unenforceable, invalid or illegal.

22. Waiver. Waiver by any party of any portion of this Agreement shall not constitute a waiver of the same or any other portion hereof.

23. Governing Law. This Agreement shall be governed by and interpreted in accordance with California law.

24. Contract Interpretation. Each party acknowledges that it has reviewed this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement.

25. MacBride Principles/Peace Charter. City of Santa Cruz Resolution NS-19,378 (7/24/90) encourages all companies doing business in Northern Ireland to abide by the MacBride Principles and Peace Charter.

26. Notices. If either party shall desire or is required to give notice to the other, such notice shall be given in writing, via email, and concurrently delivered by: (a) personal delivery, in which case notice is effective upon delivery; (b) overnight courier (i.e., Federal Express) with charges prepaid or charged to the sender’s account, in which case notice is effective when delivered; (c) priority U.S. Mail, in which case notice shall be deemed delivered on the second business day after the deposit thereof with the U.S. Postal Service. Notices shall be addressed to recipient as follows:

To CITY:

Economic Development Office
Jessie Bristow
337 Locust St., SC 95060
[email protected]/
831-420-5126
To CONSULTANT:

Ausonio Incorporated
Brian Tracy
11420 A Commercial Parkway, Castroville, CA
95012
[email protected]/831-633-3371
The Parties must provide notice of any changes to the above information in writing at least ten (10) business days before the change is effective.

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27. Counterparts. The Parties may execute this Agreement in two or more counterparts, which shall, in the aggregate, be deemed an original but all of which, together, shall constitute one and the same instrument. A scanned, electronic, facsimile or other copy of a party’s signature shall be accepted and valid as an original.

28. Warranty of Authority. The signatories to this Agreement warrant and represent that each is authorized to execute this Agreement and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this Agreement. [SIGNATURES ON FOLLOWING PAGE]
Approved As To Form:

By: ______________________________ Date: __________________ Office of the City Attorney

CITY OF SANTA CRUZ
By: ______________________________ Date: __________________ Matt Huffaker
City Manager

CONSULTANT
By: ______________________________ Date: __________________ Printed: ___________________________ Title: __________________ By: ______________________________ Date: __________________ Printed: ___________________________ Title: __________________

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EXHIBIT A: SCOPE OF WORK

PROJECT SANTA CRUZ SUBSTANCE USE DISORDER NAVIGATION CENTER RFP NO. EDH-0277

SUBJECT PRELIMINARY WORK PLAN

INTRODUCTION
Ausonio Incorporated understands the importance of aligning with Substance Use Disorder Navigation Center and the City of Santa Cruz’s mission to deliver accessible, dignified, and community-integrated behavioral health and residential treatment facilities. Ausonio Incorporated brings highly relevant, directly applicable experience delivering complex behavioral health facilities, previous behavioral health care projects closely aligns with the Coral Street SUD Navigation Center in scope, funding structure, and stakeholder complexity.

PROJECT MANAGEMENT
Ausonio Incorporated is structured to serve as a seamless extension of City staff, providing both strategic leadership and hands-on project management from pre-development through construction. Their team-based approach leverages in-house expertise across construction management, estimating, field oversight, and stakeholder coordination to deliver consistent, accountable results. An Ausonio Incorporated team member will serve as City of Santa Cruz’s dedicated point of contact.

The Owner’s Representative will lead all internal and consultant coordination, maintain schedule and budget alignment, track deliverables, and facilitate consistent communication through structured meetings, milestone reviews, and digital collaboration platforms. Their goal is a clear, predictable, and highly responsive design process from kickoff through construction administration.

The following work plan reflects the City of Santa Cruz’s stated goals, service requirements, and project parameters— including the need for design and procurement, construction and closeout, and overall owner’s representation and project management.

Additional project-specific considerations integrated into our approach:

PHASE ONE- PRE-DEVELOPMENT- DESIGN & PROCUREMENT:
 Developing and maintaining the master project schedule, including milestones and accountability measures  Coordinating with City staff, service providers, and stakeholders to align facility programming and operational needs. Work with City staff to manage the Design-Bid-Build Team for the Navigation Center Project.  Supporting community outreach efforts, particularly for projects with sensitive uses and neighborhood impacts

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 Reviewing design documents for constructability, completeness, and cost alignment Providing independent cost estimating and value engineering to maintain budget targets Coordinating permit submission and responses to reviewer comments. Review Invoices for percent of work completion in order to authorize the release of funds.  Under the direction of City staff, represent the City by leading the bid process, including bid packaging, contractor outreach, and bid evaluation Managing onboarding of the selected Design-Bid-Build team and facilitating structured preconstruction and weekly coordination meetings.
 Work with Design-Bid-Build Team to develop and initiate a neighborhood outreach process focused on construction impacts.
 Alignment in coordination with BHCIP funding requirements and budget realism.  Integration of SUD treatment needs across ASAM Levels 3.1, 3.2-WM, and 3.5.

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Santa Cruz Review:

Our organizational approach is designed to deliver consistent, transparent, and effective project management services.

Through defined roles, integrated team coordination, and proactive oversight, Ausonio Incorporated is well-positioned to support the City in successfully delivering the Navigation Center project in accordance with scope, schedule, and budget requirements.

Deliverables:
 Subconsultants and Subcontractors summary
 Cost estimating assessment
 Technical approach and work plan
 Master schedule
 BHCIP Certification and compliance tracking
Cost Estimate:

Ausonio Incorporated will produce estimation of costs for services to ensure the design aligns with budgetary constraints.

Estimated values and subject to negotiations as project moves forward.

Work Plan:

AUSONIO INCORPORATED will provide the below anticipated level of effort by key personnel across each phase of the project, reflecting our current understanding of scope, schedule, and delivery approach. As the project advances, they will

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continue to refine this staffing model in close coordination with the City.

BHCIP Certification and compliance tracking:

AUSONIO INCORPORATED will track and provide regular updates to the City on the BHCIP Certification compliance items and schedule.

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EXHIBIT B: FEE SCHEDULE

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EXHIBIT C: WORK SCHEDULE
EXHIBIT D: INSURANCE REQUIREMENTS
Consultant shall procure and maintain insurance against claims for injuries to persons or damages to property and otherwise which may arise from or in connection with the performance of the work under this Agreement and the results of that work by Consultant, its agents, representatives, employees, or subcontractors.

A. CERTIFICATE REQUIREMENTS

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The City will be issued 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,  Coverage and policy limits will meet, or exceed, requirements below,  The Certificate Holder will be City of Santa Cruz, Risk Management, 1200 Pacific Ave., Suite 290, Santa Cruz, CA 95060,
 Certificate will be signed by an authorized representative,  An endorsement, if required below, will be provided to show the City, its officers, officials, employees, and volunteers as additional insureds, and
 Coverages must be maintained during the term of the Agreement with the City, unless a longer duration is required as specified below.

B. MINIMUM SCOPE AND LIMITS OF INSURANCE
Consultant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. If Consultant maintains broader insurance coverage and/or higher limits than the minimums shown below, the City of Santa Cruz requires and shall be entitled to the broader insurance coverage and/or higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Cruz.

Coverage will be at least as broad as:
 COMMERCIAL GENERAL LIABILITY (CGL): $1,000,000 PER OCCURRENCE; $2,000,000 AGGREGATE Proof of coverage for $1 Million per occurrence and $2 Million in the aggregate including products and completed operations, property damage, bodily injury, personal and advertising injury will be provided on Insurance Services Office (ISO) Form CG 00 01 covering CGL.  PROFESSIONAL LIABILITY (ERRORS AND OMISSIONS): $2,000,000 PER OCCURRENCE OR CLAIM, $2,000,000 AGGREGATE.

Consultant will maintain insurance appropriate to Consultant’s profession; with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after date of completion of the services under this Agreement. If coverage is canceled or non-renewed and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date or start of work date, Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of the contract of work.
 AUTOMOBILE LIABILITY:

Proof of coverage for $1,000,000 provided on ISO Form Number CA 00 01 covering any auto (Code 1), or if Consultant has no owned autos, hired, (Code 8) and non-owned autos (Code 9), per accident for bodily injury and property damage.
 WORKERS’ COMPENSATION AS REQUIRED BY THE STATE OF CALIFORNIA, WITH STATUTORY LIMITS, AND EMPLOYER’S LIABILITY INSURANCE: $1,000,000 per accident for bodily injury or disease.

The Worker’s Compensation policy must be endorsed with a waiver of subrogation in favor of the City for all work performed by the Consultant and its employees. (Not required if Consultant provides written verification it has no employees) - If Consultant has no employees, Consultant shall complete and sign a Workers’ Compensation Exemption Declaration and Release of Liability.

C. OTHER INSURANCE PROVISIONS

16.21 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0277 May 2026 (Form Rev.03/25 ) Page 19
The insurance policies are to comply with the following provisions:
 ADDITIONAL INSURED STATUS
The City, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Consultant including materials, parts, or equipment furnished in connection with such work or operations, products and completed operations. General liability coverage will be provided in the form of an endorsement to Consultant’s insurance at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 (if a later edition is used).
 PRIMARY COVERAGE
For any claims related to this Agreement, Consultant’s and all subcontractor’s insurance coverage will be primary and non-contributory as respects the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents, or volunteers will be excess of Consultant’s and all subcontractor’s insurance and will not contribute with it.
 NOTICE OF CANCELLATION
Each insurance policy required above shall state that the coverage shall not be canceled, except with notice to the City.
 WAIVER OF SUBROGATION
Consultant hereby grants to the City a waiver of any right to subrogation, except as otherwise not applicable, which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss, including attorney’s fees under such insurance. Consultant agrees to obtain any endorsement that may be necessary to effectuate this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.  EXCESS LIABILITY/UMBRELLA INSURANCE POLICIES
Consultant may use excess liability/umbrella policies to meet the required liability limits on the condition that they provide all of the insurance coverages required herein, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The excess liability/umbrella insurance policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying CGL insurance. No insurance policies maintained by the additional insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Consultant’s primary and excess liability policies are exhausted.  DURATION OF COVERAGE
CGL & Excess Liability/Umbrella policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained, and evidence of insurance must be provided, for at least five (5) years after completion of the contract of work.]  SELF-INSURED RETENTIONS (SIR)
Self-insured retentions must be declared to and approved by the City. City may require Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related expenses.

The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.

16.22 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0277 May 2026 (Form Rev.03/25 ) Page 20
 ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A: VII, unless otherwise acceptable to the City.
 CLAIMS MADE POLICIES
If any of the required policies provide coverage on a claims-made basis:

1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work.  VERIFICATION OF COVERAGE
Consultant will furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to be approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning will not waive the Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

D. SUBCONTRACTORS
Consultant shall include their subcontractor(s) as additional insured(s) under the policies or shall furnish separate certificates and endorsements for each contractor and subcontractor. Consultant shall require and verify that all contractors and subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure that City, its officers, officials, employees, agents, and volunteers are named as additional insureds on insurance required from its contractor(s) and subcontractor(s).

E. SPECIAL RISKS/CIRCUMSTANCES
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances and provide notice to Consultant.

16.23 City Council

AGENDA REPORT
DATE: 05/28/2026
AGENDA OF: 06/09/2026
DEPARTMENT: Economic Development
SUBJECT: Harvey West Studios (119 Coral Street) and Future Residential Substance Use Disorder Navigation Center Site (125 Coral Street) – Easements Modifications and Removals (ED)
LOCATION: District 5
RECOMMENDATION: Motion to:
1) Adopt a resolution to: (a) Authorize the City Manager to approve proposed new utility, emergency access, and ingress egress easements and property rights modifications necessary for the development and operation of Harvey West Studios (119 Coral Street) and the City’s future Residential Substance Use Disorder Navigation Center (125 Coral Street), in a form to be approved by City Attorney, including the execution of separate instruments, agreements, a reciprocal easement agreement, and any other such documents related to easements needed to facilitate development and operation of the above project sites, and (b) Authorize the City Manager to approve and execute the reconveyance of existing parking, utility, emergency access and ingress egress easement agreements that are in conflict with the proposed new easements and execution of new easement agreements needed to facilitate development and operation on the above project sites, in a form to be approved by City Attorney; and 2) Find that the actions are exempt under CEQA Guidelines Section 15305 - Minor Alterations in Land Use Limitations.

BACKGROUND: 180 Supportive Housing, LLC is the owner of Harvey West Studios (HWS) located at 119 Coral Street. Housing Matters (HM) is the owner’s representative for 180 Supportive Housing, LLC and is working with MidPen Housing, a non-profit developer (Project Manager), to construct HWS at the former Page Smith Housing site (119 Coral Street). HWS has replaced the original 40-bedroom transitional housing complex with 120 Single Room Occupancy (SRO) rental units for income eligible households at 20-50% Area Median Income (AMI). The five-story new construction contains 4-floors of supportive housing above ground level community amenities and services.

During the building permit process, MidPen Housing and Housing Matters (collectively, the Developer) conducted a comprehensive property title review and survey, known as an ALTA or NSPS Survey, prepared for much of the Coral Street Campus including both the HWS property

17.1 (APN 008-171-31) and the adjacent City owned property (APN 008-171-33) located northeast from the HWS property. The City’s future Residential Substance Use Disorder (RSUD) Navigation Center site (APNs 008-171-24, & - 25) was not included in the survey referenced above.

Based on the ALTA Survey, the Developer has made a request to the City to grant a utility easement, including but not limited to a PG&E easement, on the City owned land at the Coral Street Campus to allow for PG&E to access the power vault labeled as the “Existing subsurface box” in the diagram below. PG&E has provided a draft Easement Deed that is required to be signed by the City, so the building can be energized and maintain the current construction completion and leasing timeline. The below diagram further illustrates the PG&E request with the existing HWS building footprint. The diagram is not to scale and should only be used for orienting the PG&E infrastructure to the HWS parcel.

There is an existing easement between the City of Santa Cruz and PG&E that covers the existing PG&E subsurface box (i.e., vault) on the City’s property (APN 008-171-33). This easement covers roughly 1,169 square feet of area on the southern corner of the Coral Street Campus adjacent to the Hwy 1/River Street intersection. The shape of the easement indicates the power to the vault is coming from Hwy 1/River Street, which is validated on the ALTA survey.

In the process of reviewing the HM proposal, City staff identified a potential need for reciprocal easements on the HWS site that would allow an approximately 25-foot drive isle for utilities, ingress egress, and emergency vehicle (EV) access to facilitate the HWS and the future RSUD Navigation Center operations. These easements will provide access to EV and utility vehicles, will address safety issues due to pedestrian activity on the HWS site, and will improve EV and utility vehicle circulation. The anticipated placement of the utility, emergency, and access easements are exhibited in attachment - Proposed Easement for 125 Coral Street Future Residential Substance Use Disorder Navigation Center site. The exact easement specifications are subject to change to accommodate possible design changes. Additional proposed easements required for site development and operation are exhibited in attachment – Coral Street Campus Map Proposal.

DISCUSSION: On behalf of the owner, HM is requesting utility, emergency access, and ingress egress easements on the adjacent City owned property, including but not limited to a PG&E easement, to facilitate the HWS development and operation. Similarly, for the benefit of the future RSUD Navigation Center and its development and operation, the City desires utility, emergency access, and ingress egress easements on the HWS property.

17.2 Staff recommends approval and execution of these easements in the form of a reciprocal easement agreement, separate instruments, agreements and any other related documents required for the easements necessary to develop and operate these two sites.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed easements are exempt from CEQA under CEQA Guidelines Section 15305 Minor Alterations in Land use Limitations in that the action only establishes or modifies easements on existing sites with a slope of less than 20% and which do not result in changes in land use or density.

HEALTH IN ALL POLICIES (HiAP): The recommendation is consistent with the Health in All Policies pillars of equity, public health, and sustainability. The proposed motions will support the creation of the HWS, 121 studios of permanent supportive housing, with on site case management available for members of the unhoused population of Santa Cruz. The future RSUD Navigation Center will serve some of the most challenged unhoused individuals in the City, providing on site substance use disorder treatment for multiple levels of care. This will permit folks to stay within the community for treatment and receive wraparound services instead of having to wait for treatment beds to become available.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: No

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: The City does not expect a fiscal impact resulting in the approval of the staff recommendation above. Funds are available and budgeted in the Economic Development capital investment program (CIP) project, Navigation Center BHCIP (c512602).

Any cost to draft and execute the agreements and instruments, will be borne by the Developer and/or through the use of already budgeted funds.

Prepared By:

Andrea Inouye
Principal Management
Analyst
Jessica de Wit
Housing and Community
Development Manager
Submitted By:

Bonnie Lipscomb
Deputy City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

2. PROPOSED EASEMENT FOR 125 CORAL ST. FUTURE RESIDENTIAL SUBSTANCE USE DISORDER NAVIGATION CENTER SITE.PDF

3. CORAL STREET CAMPUS MAP PROPOSAL.PDF

17.3 RESOLUTION NO. NS-XX,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ AUTHORIZING

THE CITY MANAGER TO APPROVE EASEMENT AGREEMENTS AND

RECONVEYANCE AND AMENDMENTS OF EXISTING EASEMENT AGREEMENTS

NECESSARY FOR THE DEVELOPMENT AND OPERATION OF HARVEY WEST STUDIOS (119 CORAL STREET) AND THE FUTURE RESIDENTIAL SUBSTANCE USE DISORDER NAVIGATION CENTER (125 CORAL STREET), IN A FORM TO BE

APPROVED BY THE CITY ATTORNEY
WHEREAS, the City of Santa Cruz (“City”) is developing a future Residential Substance Use Disorder Navigation Center at its property located at 125 Coral Street, Santa Cruz, California to house fifty residential treatment beds for unhoused individuals; and WHEREAS, Housing Matters in collaboration with MidPen Housing, a non-profit developer, is constructing Harvey West Studios, a 121 Single Room Occupancy housing complex for income eligible households at 20-50% Area Median Income at 119 Coral Street, Santa Cruz, California; and
WHEREAS, as Harvey West Studios’ owner, 180 Supportive Housing, LLC, has requested the City grant utility, emergency and access easements, including but not limited to an easement to Pacific Gas and Electric Company, to access a power vault on City property and facilitate electric service to Harvey West Studios; and
WHEREAS, the City’s future Residential Substance Use Disorder Navigation Center requires easements for utilities, emergency and access on Harvey West Studios property; and WHEREAS, reciprocal easement agreements and related instruments and agreements between the City and 180 Supportive Housing, LLC, are necessary to facilitate the development and operation of Harvey West Studios and the future Residential Substance Use Disorder Navigation Center; and
WHEREAS, new utility, emergency and access easements as well as the reconveyance of existing easements in conflict with proposed easements are necessary to facilitate the development and operation of Harvey West Studios and the future Residential Substance Use Disorder Navigation Center.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that the City Manager is hereby authorized to approve and execute new easement agreements, including reciprocal easement agreements, as well as reconveyances or amendments of any conflicting existing easement agreements, and other documents related to the easement agreements necessary for utilities, emergency and access, or otherwise for the development and operation of Harvey West Studios (119 Coral Street) and the City’s future Residential Substance Use Disorder Navigation Center (125 Coral Street), in a form to be approved by the City Attorney.

17.4 RESOLUTION NO. NS-XX,XXX
PASSED AND ADOPTED this 9th day of June, 2026 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

17.5 C A B R I L L O
H W Y

R I V E R S T

C O R A L S T
10'-0"
32'-0"
20'-0"
2 3
1 1
1 4
5 6
7 8
9 25'-0"
20'-0"
7 10
11 12
13 13
A100 1" = 40'-0"
1 SITE PLAN
1 (P) EMERGENCY & UTILITY ACCESS2 (P) TRASH SERVICE PAD APPROACH3 (P) TRASH COMPACTOR4 (P) SECURED PARKING (20 APPROXIMATELY) 5 (P) SANTA CRUZ NAVIGATION SUD CENTER6 (P) EXTERIOR PATH OF TRAVEL TO PUBLIC WAY7 (P) SECURED ACCESS GATE8 (E) 10'-0" DRAINAGE EASEMENT9 RECENTLY CONSTRUCTION HAVERY WEST STUDIOS N
0 10' 30' 60' 90'
10 LOFT SHELTER & DAY SERVICES11 COUNTY HEALTH CLINIC12 REBELE FAMILY SHELTER13 (P) UTILITY EASEMENT

17.6 G
(N) IEE
(N) PUBLIC SERVICE EASEMENTExtend to include existing utilities.(N) INGRESS & EGRESS EASEMENTTo benefit adjoining parcels and provide access to trash enclosure.(N) EMERGENCY VEHICLE ACCESS EASEMENT

PROPOSED EASEMENTS
1 CITY AS GRANTOR
23 45
7 HOUSING MATTERS AS GRANTOR
(N) INGRESS & EGRESS EASEMENTTo benefit adjoining parcels and provide access to future Navigation Centerand redevelopment of Day Services Bldg.(N) PUBLIC SERVICE EASEMENTExtend to include existing utilities and sidewalk along easTside and downpedestrian way to Highway 9.(N) INGRESS & EGRESS EASEMENTTo benefit adjoining parcels and provide access to trash enclosure.(N) EMERGENCY VEHICLE ACCESS EASEMENT(N) PARKING EASEMENT Addresses non-conforming parking issues on site with all parking sharedamong the parcels. May be modified in the future with project.s 6 RECIPROCAL EASEMENT (ALL PARCELS)
NP

CORAL STREET CAMPUS - PROPOSED PARCEL MAP
i. REMOVE UNSPECIFIED 20’ INGRESS EGRESS EASEMENT (RED) ii. REPLACE UTILITY, I&E EASEMENT 9iii. REMOVE DRIVEWAY EASEMENT 10 MODIFICATIONS TO EXISTING(see attached ALTA survey)
iv. REMOVE ELECTRICAL EASEMENT 18
1 2
5 4
3 6
Lorem ipsum
3 1
2 7
Walkway not included.

17.7 City Council

AGENDA REPORT
DATE: 05/21/2026
AGENDA OF: 06/09/2026
DEPARTMENT: Finance
SUBJECT: Liability Claims Filed Against the City of Santa Cruz (FN) RECOMMENDATION: Motion to reject the liability claims of 1) David Allen Hill, 2) Rudolf Wories, 3) Sanders Yixuan Tan; and to return as late claim of 4) Bailey James Manoff based on staff recommendation.

BACKGROUND: N/A
DISCUSSION: Claims to be rejected:

1. Claimant: David Allen Hill
Date of occurrence: 4/21/2026
Date of claim: 5/5/2026
Amount of claim: $ 4,509.28
Claimant is seeking reimbursement for vehicle damage that he alleges was caused by a bollard protecting a fire hydrant.

Self-Represented

2. Claimant: Rudolf Wories
Date of occurrence: 11/30/2025
Date of claim: 5/7/2026
Amount of claim: Unspecified
Claimant seeks damages for injuries allegedly sustained in a bicycle accident.

Represented by Legal Counsel

18.1 3. Claimant: Sanders Yixuan Tan
Date of occurrence: 5/3/2026
Date of claim: 5/8/2026
Amount of claim: $ 1,227.69
Claimant seeks reimbursement for vehicle damage allegedly caused by a pothole.

Self-Represented
II. Claim to be Returned as Late

4. Claimant: Bailey James Manoff
Date of occurrence: 8/20/2025
Date of claim: 4/30/2026
Amount of claim: $1,168.36
Claimant alleges that he was driving his motorcycle when it slid on sand, causing damage to his bike and injuring him.

Self-Represented
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: N/A HEALTH IN ALL POLICIES (HiAP): N/A
FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: No

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: No fiscal impact.

Prepared By:

Ross Brandon
Risk & Safety Manager
Submitted By:

Elizabeth Cabell
Finance Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

18.2 City Council

AGENDA REPORT
DATE: 05/21/2026
AGENDA OF: 06/09/2026
DEPARTMENT: Finance
SUBJECT: General Obligation Refunding Bonds - Tax Rate Authorization (FN) LOCATION: Citywide
RECOMMENDATION: Motion to adopt a resolution setting the tax rate for FY 2027 with respect to the City's General Obligation Refunding Bonds.

BACKGROUND: In November 1998, voters in the City of Santa Cruz approved the issuance of General Obligation Refunding Bonds (Bonds) in the amount of $7,000,000 for the purchase of greenbelt property, the renovation of the City's fire stations and the purchase/improvement of a City park adjacent to the depot site. Resources to repay the Bonds come from property tax levies within the City of Santa Cruz. The tax rate is established by the City Council each year and then forwarded to the County of Santa Cruz for inclusion on the property tax bills. The Bonds were refunded in December 2009 to reduce the overall cost of debt service and, thereby, realize financial savings for the taxpayers.

DISCUSSION: For the upcoming property tax billing, the City directs the County of Santa Cruz to levy on all taxable property in the City, in addition to all other taxes, a continuing direct and ad valorem tax in the amount of $501,366.94 to be used toward the payment of principal and interest coming due on the Bonds. Because the County of Santa Cruz is on the "Teeter Plan" the City will receive 100% of the assessment. There is no need to factor in an amount for delinquencies.

The attached resolution establishes the appropriate tax rate and instructs the Director of Finance to forward a copy to the County of Santa Cruz and take whatever action is necessary to have the assessment placed on the 2026-2027 property tax bills.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The annual General Obligation Refunding Bonds - Tax Rate Authorization is not a CEQA “project” pursuant to 14 CCR 15378(b)(4), which specifies that the term “project” does not include “government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact to the environment.” HEALTH IN ALL POLICIES (HiAP): Providing the County of Santa Cruz with the required information to levy ad valorem taxes upon all property within the City allows the City of Santa

19.1 Cruz to be following the California State Constitution and continue its current operations, which includes funding broader public safety, public health, equity, and sustainability efforts. The City's General Obligation Bonds assessment communicates to all that the City is actively maintaining fiscal sustainability.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: No

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: If the City does not provide the County of Santa Cruz with the required information to levy ad valorem taxes upon all property within the City, the City would still be required to make the Bond payment. Thus, it is recommended that the Resolution be approved, so that there will be no fiscal impact to the City of Santa Cruz.

Prepared By:

Noah Otts
Accountant I
Submitted By:

Elizabeth Cabell
Director of Finance
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION FOR GO BOND LEVY FY27.DOCX

19.2 RESOLUTION NO. NSRESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ SETTING THE TAX RATE FOR FY 2026 WITH RESPECT TO GENERAL

OBLIGATION REFUNDING BONDS
WHEREAS, more than two-thirds of the electors voting at a special municipal election held on November 3, 1998, voted for a proposition authorizing the issuance by the City of general obligation bonds in the aggregate principal of $7,000,000 (the "1998 /1999 Bonds") for the purpose of providing funds for certain municipal improvements, including fire station improvements, community park improvements, and the acquisition of property to be used for open space purposes; and
WHEREAS, pursuant to such authorization the City has previously issued the 1998 /1999 Bonds in the form of $4,500,000 principal amount of current interest bonds and $2,498,473.25 principal amount of capital appreciation bonds; and WHEREAS, the City Council has issued and sold its City of Santa Cruz 2009 General Obligation Refunding Bonds (the "Refunding Bonds") in the aggregate principal amount not to exceed $8,000,000 for the purpose of refunding all of the outstanding 1999 current interest bonds and all of the outstanding 1998 capital appreciation bonds and thereby realizing financial savings to the property tax payers of the City; and
WHEREAS, pursuant to Section 43632 of the California Government Code, the City Council is required annually to levy and collect until the bonds are paid, or until there is a sufficient amount in the treasury set apart to meet all payments of principal and interest coming due, a tax sufficient to pay the principal of and interest on the Refunding Bonds coming due and payable before the proceeds of a tax levied at the next general tax levy will be available; and WHEREAS, the City has determined that it is necessary to levy and collect an amount of $501,366.94 toward the payment of principal and interest coming due on the Refunding Bonds on March 1 and September 1, 2027, and thereby directs the County of Santa Cruz to levy on all taxable property in the City, in addition to all other taxes, a continuing direct and ad valorem tax in the amount of $501,366.94 based on the estimated assessed values for all rolls (secured, unsecured and utility) for FY 2027.

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

Section 1 . Levy of Tax. The City Council hereby determines that the tax rate necessary to pay the principal of and interest on the Refunding Bonds coming due and payable on March 1 and September 1, 2027, is equal to a continuing direct and ad valorem tax in the amount of $501,366.94, and such tax rate shall be and is hereby levied in accordance with all applicable requirements of law.

19.3 Section 2. Collection of Tax. The Director of Finance is hereby directed to forward a copy of this Resolution to the Auditor-Controller of the County of Santa Cruz and to the Board of Supervisors of the County of Santa Cruz, and to take such actions and execute such documents as may be required to cause the tax rate set forth in Section 1 to be placed on the 2026-2027 property tax bills and collected by the County of Santa Cruz.

Section 3 . Application of Tax. As provided in Section 43634 of the California Government Code, all taxes levied pursuant to this Resolution shall be used only for payment of the Refunding Bonds and the interest thereon.

Section 4. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption.

PASSED AND ADOPTED this 9th day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

19.4 City Council

AGENDA REPORT
DATE: 05/21/2026
AGENDA OF: 06/09/2026
DEPARTMENT: Finance
SUBJECT: Proposition 4 GANN Appropriations Limit Adjustment Factors (FN) LOCATION: Citywide
RECOMMENDATION: Motion to:
1) Adopt a resolution amending the calculation of the City’s Proposition 4 Appropriations Limit (GANN Limit) based on the adopted budget for FY 2026 and rescinding Resolution No. NS30,524; and 2) Adopt a resolution approving the selection of the annual adjustment factors to be utilized in the calculation of the City’s Proposition 4 Appropriations Limit (GANN Limit) based on the adopted budget for FY 2027, with amendments thereto, if any.

BACKGROUND: In 1979, the voters of California approved Proposition 4, also known as the GANN Initiative (more commonly referred to as the GANN Limit). This initiative, now Article XIIIB of the State Constitution, was drafted as a companion measure to Proposition 13, which is Article XIIIA of the Constitution. Article XIIIB establishes a limit on annual appropriations, or spending limit, for all governmental entities in the State of California. To comply with Article XIIIB, the City Council is required to select the adjustment factors in both price and population to be used in making the actual calculation of the appropriations limit. The appropriation limit is determined by multiplying the limit for the prior year by either the percentage change in (a) per capita personal income or (b) non-residential new construction assessed value, and then multiplying the figure resulting from this step by either the percentage change in (a) City population or (b) County population. That figure then becomes the appropriations limit for the new fiscal year. The appropriations subject to the limit are those General Fund expenditures that are funded by general taxes. Pursuant to government Code Section 37200, the GANN Limit and the total appropriations subject to limitation must be published in the annual budget.

DISCUSSION: On June 24, 2025, the City Council adopted Resolution No. NS-30,524, approving the selection of the annual adjustment factors to be utilized in the calculation of the City’s GANN Limit based on the adopted budget for FY 2026. One of the factors utilized in the calculation was the change in City population (0.2%). During the City’s annual financial audit, it was discovered that this figure had been rounded up from 0.18%. The difference of 0.02% would not have changed the previous staff recommendation of which factors were selected. A

20.1 recalculation of the appropriations limit for FY 2026 using the correct number of significant digits is calculated to be $219,625,063. The total appropriations subject to the limit in FY 2026 remains unchanged and still falls under the recalculated limit.

The City Council is also being asked at this time to approve the selection of the adjustment factors that will be used to prepare the appropriations limit calculation based on the FY 2027 budget. As noted above, the two factors to be selected fall into the categories of price and population. Staff recommends the selection of the change in California per capita personal income (4.95%) for the price category and the selection of the change in City population (0.10%) for the population category as the adjustment factors, as these selections will maximize the appropriations limit and provide the City with a higher ceiling for adopting future City budgets.

Using these factors, and as shown on the attached schedule, the appropriations limit is calculated to be $230,727,000. The City’s anticipated spending level in the FY 2027 budget is well below this limit.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The GANN Limit not a CEQA “project” per 14 CCR 15378(b)(4), which specifies that the CEQA term “project” does not include “government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact to the environment.”
HEALTH IN ALL POLICIES (HiAP): Remaining below the appropriations limit allows the City of Santa Cruz follow the California State Constitution and continue its current operations, which includes funding broader public safety, public health, equity, and sustainability efforts.

The City’s expenditures being below the appropriations limit communicates to all that the City is actively maintaining fiscal sustainability.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: No

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: No impact.

Prepared By:

Joseph Balasabas
Management Analyst
Submitted By:

Elizabeth Cabell
Finance Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. PROPOSITION 4 GANN LIMIT RESOLUTION FOR FY 2026.DOCX

2. FY 2026 PROP 4 GANN COMPUTATION OF APPROPRIATIONS LIMIT.PDF

3. FY 2026 PROP 4 GANN DETERMINATION OF PROCEEDS OF TAXES.PDF

4. PROPOSITION 4 GANN LIMIT RESOLUTION FOR FY 2027.DOCX

5. FY 2027 PROP 4 GANN COMPUTATION OF APPROPRIATIONS LIMIT.PDF

6. FY 2027 PROP 4 GANN DETERMINATION OF PROCEEDS OF TAXES.PDF

20.2 RESOLUTION NO. NS-XX,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ RESCINDING RESOLUTION NO. NS-30,524 AND APPROVING AN AMENDED SELECTION OF THE ANNUAL ADJUSTMENT FACTORS USED IN THE CALCULATION OF THE CITY’S PROPOSITION 4 APPROPRIATIONS LIMIT FOR FISCAL YEAR 2026 WHEREAS, Proposition 111 requires a recorded vote by the Council regarding which annual adjustment factors will be used in the City’s calculation of the Proposition 4 limitation beginning with budget year 1990-91; and
WHEREAS, it is in the City’s best interest to select the factors with the largest increase; and
WHEREAS, the previous calculation of the City’s Proposition 4 Appropriations Limit for Fiscal Year 2027 used an insufficient number of significant digits for the change in City population growth; and
WHEREAS, on June 24, 2025, the City Council adopted resolution No. NS 30,524 approving the selecting of the annual adjustment factors used in the calculation of the City’s Proposition 4 Appropriations Limit for Fiscal Year 2026; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that: (1) Resolution No. NS-30,524 is hereby rescinded, (2) and the calculation of the City’s Proposition 4 Appropriations Limit for Fiscal Year 2026 is hereby amended to select the following annual adjustment factors: The 6.44% increase in California per capita personal income for the price factor and the City of Santa Cruz population growth of 0.18% for the population factor.

PASSED AND ADOPTED this 9th day of June, 2026 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

20.3 Calculation of Spending Limit
Last Year's Appropriations Limit (FY 2025) $ 205,966,223 Adjustment Factors:

A. Change in Population - City 1.001800
B. Change in California per Capita Personal Income 1.064400 A times B 1.06632
Total Adjustment Percentage (A times B) 6.6316%
Total Adjustment Dollars 13,658,840
New Appropriations Limit For Fiscal Year 2026 219,625,063 $ Appropriations Compared To Limit
Projected Proceeds From Taxes $ 110,449,643
Less: Federal Mandates 1,479,993 $
Qualified Capital Outlays -
Debt Service Appropriations 1,156,080
Total Exclusions 2,636,073
Appropriations Subject to Limit For Fiscal Year 2026 107,813,570 Appropriations Limit For Fiscal Year 2026 219,625,063
Amount Over / (Under) Appropriations Limit (111,811,493) $

CITY OF SANTA CRUZ

APPROPRIATIONS SPENDING LIMIT
PROP 4 - GANN LIMIT
BASED ON 2026 ADOPTED BUDGET

20.4 Proceeds Non-Proceeds
of Taxes of Taxes Total
General Fund Taxes
Property Taxes $ 30,194,856 $ - $ 30,194,856
Sales and Use Taxes 33,413,092 - 33,413,092
Business License Taxes 755,910 - 755,910
Franchise Taxes 4,865,325 - 4,865,325
Utility Users' Tax 15,060,178 - 15,060,178
Transient Occupancy Tax 15,897,678 - 15,897,678
Admissions Tax 3,102,190 - 3,102,190
Cannabis Tax 1,135,350 - 1,135,350
Property Transfer Tax 287,099 - 287,099
Parking Lot Tax 694,105 - 694,105
Sugar-Sweetened Beverage Tax 1,000,000 - 1,000,000
CRM Assessment 454,310 - 454,310
General Fund License & Permits
Construction Permits - 1,576,000 1,576,000
Other Licenses and Permits - 466,300 466,300
General Fund Intergovernmental
Federal - 27,020 27,020
State - Homeowner's Property Tax Relief 80,000 - 80,000 State - Measure D SCCRTC - 34,000 34,000
State - Motor Vehicle In-Lieu 75,000 - 75,000
State - Operating Grants and Contributions - 25,000 25,000 State - POST Training Program - 50,000 50,000
State - AVA Funds - 80,000 80,000
Local - 90,495 90,495
General Fund Charges for Services
General Government - 2,206,537 2,206,537
Public Safety - 7,323,760 7,323,760
Culture and Recreation - 4,628,500 4,628,500
Public Works - 2,433,850 2,433,850
Community and Economic Development - 35,989 35,989
Library - 605,170 605,170
Interfund Charges - 24,078,470 24,078,470
Miscellaneous Charges for Services - 475 475
General Fund Other Revenues:

Fines and Forfeits - 1,220,947 1,220,947
Rents and Royalties - 7,200,188 7,200,188
Contributions and Donations - 61,350 61,350
Other Miscellaneous Revenues - 660,702 660,702
Interfund Transfers In - 92,500 92,500
Proceeds of Asset Dispositions - 1,500 1,500
Loan Principal Receipts - 339,359 339,359
Other Funds Revenue
Police Special Revenue Funds - 545,000 545,000
State Highway Funds - Gas Tax - 8,831,009 8,831,009
State Highway Funds - Measure D City 1,760,000 - 1,760,000 Parks and Recreation Funds 515,000 - 515,000
Housing and Community Development Funds - 3,306,862 3,306,862 Other Special Revenue Funds 635,000 1,428,400 2,063,400 Capital Projects Funds - 86,122,600 86,122,600
Debt Service Funds - 1,156,080 1,156,080
SUB-TOTAL 109,925,093 154,628,063 264,553,156
Interest Earnings 524,550 769,039 1,293,589
GRAND TOTAL $ 110,449,643 $ 155,397,102 $ 265,846,745

CITY OF SANTA CRUZ

CALCULATION OF PROCEEDS OF TAXES
PROP 4 - GANN LIMIT
BASED ON 2026 ADOPTED BUDGET
Determination of Proceeds of Taxes

20.5 RESOLUTION NO. NS-XX,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ APPROVING

THE SELECTION OF THE ANNUAL ADJUSTMENT FACTORS USED IN THE CALCULATION OF THE CITY’S PROPOSITION 4 APPROPRIATIONS LIMIT FOR FISCAL YEAR 2027
WHEREAS, Proposition 111 requires a recorded vote by the Council regarding which annual adjustment factors will be used in the City’s calculation of the Proposition 4 limitation beginning with budget year 1990-91; and
WHEREAS, it is in the City’s best interest to select the factors with the largest increase; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz as follows:

The 4.95% increase in California per capita personal income for the price factor and the City of Santa Cruz population growth of 0.10% for the population factor are selected to be used as the annual adjustment factors in the calculation of the City’s Proposition 4 Appropriations Limit for Fiscal Year 2027.

PASSED AND ADOPTED this 9th day of June, 2026 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

20.6 Calculation of Spending Limit
Last Year's Appropriations Limit (FY 2026) $ 219,625,063 Adjustment Factors:

A. Change in Population - City 1.001000
B. Change in California per Capita Personal Income 1.049500 A times B 1.05055
Total Adjustment Percentage (A times B) 5.0550%
Total Adjustment Dollars 11,101,937
New Appropriations Limit For Fiscal Year 2027 230,727,000 $ Appropriations Compared To Limit
Projected Proceeds From Taxes $ 117,660,320
Less: Federal Mandates 950,492 $
Qualified Capital Outlays -
Debt Service Appropriations 1,165,272
Total Exclusions 2,115,764
Appropriations Subject to Limit For Fiscal Year 2027 115,544,556 Appropriations Limit For Fiscal Year 2027 230,727,000
Amount Over / (Under) Appropriations Limit (115,182,444) $

CITY OF SANTA CRUZ

APPROPRIATIONS SPENDING LIMIT
PROP 4 - GANN LIMIT
BASED ON 2027 ADOPTED BUDGET

20.7 Proceeds Non-Proceeds
of Taxes of Taxes Total
General Fund Taxes
Property Taxes $ 32,432,911 $ - $ 32,432,911
Sales and Use Taxes 35,249,697 - 35,249,697
Business License Taxes 818,428 - 818,428
Franchise Taxes 5,745,039 - 5,745,039
Utility Users' Tax 17,516,817 - 17,516,817
Transient Occupancy Tax 16,191,435 - 16,191,435
Admissions Tax 3,164,234 - 3,164,234
Cannabis Tax 1,324,848 - 1,324,848
Property Transfer Tax 393,886 - 393,886
Parking Lot Tax 1,086,995 - 1,086,995
Sugar-Sweetened Beverage Tax - - -
CRM Assessment - - -
General Fund License & Permits
Construction Permits - 2,432,000 2,432,000
Other Licenses and Permits - 461,200 461,200
General Fund Intergovernmental
Federal - 221,647 221,647
State - Homeowner's Property Tax Relief 80,000 - 80,000 State - Measure D SCCRTC - 83,000 83,000
State - Motor Vehicle In-Lieu 82,771 - 82,771
State - Operating Grants and Contributions - 185,000 185,000 State - POST Training Program - 52,000 52,000
State - AVA Funds - 165,929 165,929
Local - 60,000 60,000
General Fund Charges for Services
General Government - 2,884,885 2,884,885
Public Safety - 8,143,945 8,143,945
Culture and Recreation - 4,672,500 4,672,500
Public Works - 2,266,387 2,266,387
Community and Economic Development - - -
Library - 874,967 874,967
Interfund Charges - 23,432,306 23,432,306
Miscellaneous Charges for Services - 140 140
General Fund Other Revenues:

Fines and Forfeits - 1,546,997 1,546,997
Rents and Royalties - 8,540,537 8,540,537
Contributions and Donations - 30,000 30,000
Other Miscellaneous Revenues - 450,463 450,463
Interfund Transfers In - 2,692,545 2,692,545
Proceeds of Asset Dispositions - 1,500 1,500
Loan Principal Receipts - - -
Other Funds Revenue
Police Special Revenue Funds - 880,000 880,000
State Highway Funds - Gas Tax - 5,723,790 5,723,790
State Highway Funds - Measure D City 1,744,000 - 1,744,000 Parks and Recreation Funds 500,000 - 500,000
Housing and Community Development Funds - 4,097,252 4,097,252 Other Special Revenue Funds 650,000 1,441,400 2,091,400 Capital Projects Funds - 30,382,519 30,382,519
Debt Service Funds - 1,165,272 1,165,272
SUB-TOTAL 116,981,061 103,032,288 220,013,350
Interest Earnings 679,259 621,754 1,301,013
GRAND TOTAL $ 117,660,320 $ 103,654,043 $ 221,314,363

CITY OF SANTA CRUZ

CALCULATION OF PROCEEDS OF TAXES
PROP 4 - GANN LIMIT
BASED ON 2027 ADOPTED BUDGET
Determination of Proceeds of Taxes

20.8 City Council

AGENDA REPORT
DATE: 05/21/2026
AGENDA OF: 06/09/2026
DEPARTMENT: Human Resources
SUBJECT: Santa Cruz Firefighters, I.A.F.F. Local 1716 of the City of Santa Cruz Memorandum of Understanding (HR)
LOCATION: Citywide
RECOMMENDATION: Motion to adopt the successor Memorandum of Understanding (MOU) for the International Association of Firefighters Local 1716 (Local 1716) of the City of Santa Cruz effective September 27, 2025 through June 30, 2028.

BACKGROUND: On November 18, 2025 a Tentative Agreement on the successor MOU was brought to the City Council (Council). The 2025 - 2028 Successor MOU in its entirety including the changes as agreed is now being provided to Council as a final administrative action.

The Memorandum of Understanding (MOU) with the International Association of Firefighters Local 1716 (Local 1716) expired on September 26, 2025. Local 1716 and the City met and conferred in good faith in accordance with the Meyers-Milias-Brown Act regarding wages, hours, and other terms and conditions of employment. As a result, Local 1716 and the City have reached a Tentative Agreement on a successor MOU.

As with other labor contracts, the approach to determining successor Local 1716 compensation is dependent upon: (1) market status or the latest market study; (2) the Consumer Price Index, San Francisco Bay Area (CPI-U); and (3) available funding. Based on the 2025 Compensation study the median average market standing of total compensation for Firefighter Paramedic, Fire Engineer, and Fire Captain is 2.9% below market. The City considers classifications within 5% of the market as competitive.

Local 1716 and the City have been meeting and conferring on a successor MOU and have reached a Tentative Agreement. In summary, the major terms of the new MOU include changes to the following sections:
 Section 10- Pay Rates and Practices
 Section 11- Sick Leave
 Section 13- Bereavement Leave
 Section 14- Leaves of Absence
 Section 19- Disciplinary Appeals Procedure

21.1 DISCUSSION: The 2025 - 2028 Successor MOU in its entirety including the changes as agreed is now being provided to Council as a final administrative action.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: Not applicable.

HEALTH IN ALL POLICIES (HiAP): Approval of the successor agreements for Santa Cruz Firefighters, I.A.F.F. Local 1716 addresses the public health pillar of HiAP by supporting operational continuity, ensuring stable leadership in managing essential City services and programs that directly affect community well-being.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: Yes

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: Yes FISCAL IMPACT DESCRIPTION: Additional appropriations to account for the cost of these compensation and benefit changes were brought to City Council in the FY 2026 midyear budget adjustment and are incorporated into the FY 2027 Proposed Budget.

Prepared and Submitted By:

Sara De Leon
HR Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION APPROVING SUCCESSOR MEMORANDUM OF UNDERSTANDING FOR FIRE.DOCX

2. FIRE MOU 22025-2028 REDLINE.DOCX

21.2 RESOLUTION NO. NS-XX,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ APPROVING A

SUCCESSOR MEMORANDUM OF UNDERSTANDING WITH THE INTERNATIONAL ASSOCIATION OF FIREFIGHTERS LOCAL 1716
WHEREAS, representatives of the City of Santa Cruz and the International Association of Firefighters Local 1716 (Local 1716) met and conferred in good faith to bargain for a successor agreement; and
WHEREAS, the Tentative Agreement with the Local 1716 has been entered into by the respective parties on September 27, 2025 and duly ratified by the Local 1716 members; and WHEREAS, the terms of the successor Memorandum of Understanding are attached as Exhibit A;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz as follows: The City Council hereby approves the successor Memorandum of Understanding for the International Association of Firefighters Local 1716 effective September 27, 2025 and expiring June 30, 2028
PASSED AND ADOPTED this 9th day of June, 2026 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

21.3 MEMORANDUM OF UNDERSTANDING

CITY OF SANTA CRUZ
AND
SANTA CRUZ FIREFIGHTERS, I.A.F.F. LOCAL 1716
September 17, 2022 – September 26, 2025September 27, 2025-June 30June 30, 2028

21.4 MEMORANDUM OF UNDERSTANDING

CITY OF SANTA CRUZ AND
SANTA CRUZ FIREFIGHTERS, I.A.F.F. LOCAL 1716
September 2717, 20252 – JuneSeptember 3026, 20285
Contents
SECTION 1.00 - TERM........................................................................................................................................1 SECTION 2.00 - PREAMBLE................................................................................................................................1 SECTION 3.00 - NO ABROGATION OF RIGHTS...................................................................................................1 SECTION 4.00 - UNION/MANAGEMENT RELATIONS.........................................................................................1

4.01 Association Use of City E-Mail System ............................................................................................1 SECTION 5.00 - UNION RECOGNITION/AGENCY SHOP ....................................................................................2

5.01 Recognition......................................................................................................................................2

5.02 Payroll Deduction ............................................................................................................................2

5.02.01 Payroll Deductions .................................................................................................................2

5.02.02 Union’s Certification ..............................................................................................................2

5.03 Indemnification ...............................................................................................................................3

5.04 Union Notification ...........................................................................................................................3 SECTION 6.00 - FULL UNDERSTANDING, MODIFICATION, WAIVER ..................................................................3 SECTION 7.00 - NO DISCRIMINATION ...............................................................................................................4 SECTION 8.00 - WORK WEEK/SHIFTS/ASSIGNMENTS.......................................................................................4

8.01 56 Hour/Week Schedule .................................................................................................................4

8.01.01 Work Week ............................................................................................................................4

8.01.02 Shifts ......................................................................................................................................4

8.01.03 Time Released........................................................................................................................4

8.02 40 Hour/Week Schedule .................................................................................................................4

8.02.01 Work Week ............................................................................................................................4

8.02.02 Schedule.................................................................................................................................5

8.03 Job Assignment................................................................................................................................5

8.03.01 Fire Prevention Assignment...................................................................................................5

8.03.02 Marine Rescue Captain Assignment ......................................................................................5

8.04 Staffing ............................................................................................................................................5

8.05 Shift and Station Bidding .................................................................................................................5

21.5 8.06 Vacancy Bidding ..............................................................................................................................5

8.07 Marine Safety Officer Lunch Period ................................................................................................5

8.08 Marine Safety Officer Shift Differential...........................................................................................5 SECTION 9.00 - PERSONNEL ACTION ................................................................................................................6

9.01 Performance Evaluations ................................................................................................................6

9.02 Probation.........................................................................................................................................6

9.02.01 Probationary Period...............................................................................................................6

9.02.02 Objective of Probationary Period ..........................................................................................7

9.02.03 Rejection of Probationary Employee .....................................................................................7

9.02.04 Extension of Probation...........................................................................................................7

9.03 Personnel Files.................................................................................................................................7 SECTION 10.00 - PAY RATES AND PRACTICES ...................................................................................................7

10.01 Salary Steps .................................................................................................................................7

10.01.01 Salary Rates Upon Appointment .......................................................................................7

10.01.02 Advancement Within the Range........................................................................................8

10.02 Salary...........................................................................................................................................8

10.03 P.E.R.S. ........................................................................................................................................9

10.03.01 Employees Hired on or Before September 2, 2011 (Tier I)................................................9

10.03.02 Employees Hired On or After September 3, 2011 (Tier II)...............................................10

10.03.03 Employees Hired On or After January 1, 2013 (Tier III) ...................................................10

10.03.04 Retirement, All Employees ..............................................................................................11

10.03.05 Sick Leave Conversion .....................................................................................................11

10.04 Overtime ...................................................................................................................................11

10.04.01 56-Hour Work Week........................................................................................................11

10.04.02 40-Hour Work Week........................................................................................................12

10.05 Marine Safety Officer CalPERS ..................................................................................................12

10.06 Call Back ....................................................................................................................................12

10.06.01 Marine Safety Officer Call-Back .......................................................................................13

10.06.01.01 Callback by Phone or Computer..................................................................................13

10.06.01.02 Callback to Worksite...................................................................................................13

10.07 Holidays.....................................................................................................................................14

21.6 10.07.01 56-Hour per Week Employees.........................................................................................14

10.07.02 40-Hour per Week Employees.........................................................................................14

10.07.03. Fixed Holidays..................................................................................................................15

10.08 Working Out of Classification....................................................................................................16

10.09 Special Project Pay ....................................................................................................................16

10.10 Special Detail.............................................................................................................................17

10.11 Bilingual Pay ..............................................................................................................................17

10.12 Education Incentive...................................................................................................................17

10.13 Longevity...................................................................................................................................18

10.14 Paramedic Program...................................................................................................................19

10.15 Emergency Medical Technician.................................................................................................19

10.16 Paramedic Premium Pay for Marine Safety Administrative Captain ........................................19

10.17 Rescue Swimmer Assignment and Compensation ....................................................................19

10.18 Haz-Mat Technician Assignment and Compensation................................................................20

10.19 On-Call Fire Investigator Assignment and Compensation.........................................................20 SECTION 11.00 - SICK LEAVE ...........................................................................................................................20

11.01 Definition ..................................................................................................................................20

11.02 Accrual ......................................................................................................................................20

11.02.01 24-Hour Shift Personnel ..................................................................................................20

11.02.02 40-Hour per Week Personnel ..........................................................................................21

11.02.03 Paid Status .......................................................................................................................21

11.03 Limitations.................................................................................................................................21

11.04 Sick Leave Incentive ..................................................................................................................21

11.04.01 56-Hour per Week Employees.........................................................................................21

11.04.02 40-Hour per Week Employees.........................................................................................22 SECTION 12.00 - VACATION ............................................................................................................................22

12.01 Accrual ......................................................................................................................................22

12.01.01 40-hour/week schedules .................................................................................................22

12.01.02 56-hours/week schedules................................................................................................22

12.02 Illness During Vacation..............................................................................................................22

12.03 Union Leave Bank......................................................................................................................23

21.7 SECTION 13.00 - BEREAVEMENT LEAVE..........................................................................................................24

13.01 Marine Safety Officer Bereavement Leave ..............................................................................25 SECTION 14.00 - LEAVES OF ABSENCE ............................................................................................................26

14.01 Unpaid Leaves of Absence ........................................................................................................26

14.01.01 Medical or Personal Leave...............................................................................................26

14.01.02 Pregnancy Disability Leave ..............................................................................................26

14.01.03 Family Leave ....................................................................................................................26

14.01.04 Continuation of Insurance Benefits During Unpaid Leaves of Absence ..........................28

14.02 Paid Leaves of Absence .............................................................................................................29

14.02.01 Paid Birth/Adoptive Leave...............................................................................................29

14.02.02 Military Leave ..................................................................................................................29 SECTION 15.00 - UNIFORMS, LINENS, AND PERSONAL PROPERTY.................................................................29

15.01 Uniforms ...................................................................................................................................29

15.02 Linens ........................................................................................................................................30

15.03 Personal Property .....................................................................................................................30 SECTION 16.00 - MISCELLANEOUS PROVISIONS.............................................................................................30

16.01 Additional Duties.......................................................................................................................30

16.02 Miscellaneous Employment ......................................................................................................30

16.03 Promotions................................................................................................................................30

16.04 Layoff Policy & Procedure .........................................................................................................31

16.04.01 Layoffs .............................................................................................................................31

16.04.02 Bumping ..........................................................................................................................31

16.04.03 Notification......................................................................................................................31

16.04.04 Reinstatement .................................................................................................................31

16.05 Consolidation Merger ...............................................................................................................31

16.06 Tuition Reimbursement ............................................................................................................32

16.07 Captain/Engineer Promotional Exam........................................................................................32 SECTION 17.00 - BENEFITS..............................................................................................................................32

17.01 Medical Plan/Flexible Benefits..................................................................................................32

17.01.01 Medical Waiver Benefit ...................................................................................................33

17.01.02 Optional Benefits.............................................................................................................33

21.8 17.02 Dental Plan................................................................................................................................33

17.03 Vision Insurance ........................................................................................................................34

17.04 Retired Health Program ............................................................................................................34

17.04.01 Retiree Medical/CalPERS Medical Plan ...........................................................................34

17.04.02 Retiree Medical Incentive................................................................................................34

17.04.03 Disability Retirement before Eligible Age for Service Retirement...................................35

17.05 Life Insurance ............................................................................................................................35

17.06 Long-Term Disability .................................................................................................................35

17.07 Principal Domestic Partners......................................................................................................35

17.08 Retiree Medical Trust................................................................................................................36 SECTION 18.00 - GRIEVANCE PROCEDURE......................................................................................................37

18.01 Purpose .....................................................................................................................................37

18.02 Definitions.................................................................................................................................37

18.03 Limitations.................................................................................................................................37

18.04 Consolidation ............................................................................................................................38

18.05 Procedures ................................................................................................................................38

18.05.01 Step I................................................................................................................................38

18.05.02 Step II...............................................................................................................................38

18.05.03 Step III..............................................................................................................................39

18.05.04 Step IV.............................................................................................................................39 SECTION 19.00 - DISCIPLINARY APPEALS PROCEDURE ...................................................................................40

19.01 Definition ..................................................................................................................................40

19.02 Pre-Action Procedure................................................................................................................40

19.02.01 Step I................................................................................................................................40

19.02.02 Step II...............................................................................................................................40

19.03 Post-Action Appeal....................................................................................................................40

19.03.01 Step III..............................................................................................................................40

19.03.02 Step IV .............................................................................................................................41

19.04 Firefighters Procedural Bill of Rights Act...................................................................................42 SECTION 20.00 - WRITTEN REPRIMANDS .......................................................................................................42 SECTION 21.00 - SEVERABILITY .......................................................................................................................42

21.9 SECTION 22.00 - RENEGOTIATIONS ................................................................................................................42 SECTION 1.00 - TERM...................................................................................................................................1 SECTION 2.00 - PREAMBLE.........................................................................................................................1 SECTION 3.00 - NO ABROGATION OF RIGHTS........................................................................................1 SECTION 4.00 - UNION/MANAGEMENT RELATIONS.............................................................................1

4.01 Association Use of City E-Mail System..........................................................................................1 SECTION 5.00 - UNION RECOGNITION/AGENCY SHOP........................................................................2

5.01 Recognition .....................................................................................................................................2

5.02 Payroll Deduction............................................................................................................................2

5.02.01 Payroll Deductions.................................................................................................................2

5.02.02 Union’s Certification .............................................................................................................2

5.03 Indemnification.....................................................................................................................................3

5.04 Union Notification...........................................................................................................................3 SECTION 6.00 - FULL UNDERSTANDING, MODIFICATION, WAIVER ................................................3 SECTION 7.00 - NO DISCRIMINATION ......................................................................................................4 SECTION 8.00 - WORK WEEK/SHIFTS/ASSIGNMENTS ..........................................................................4

8.01 56 Hour/Week Schedule..................................................................................................................4

8.01.01 Work Week............................................................................................................................4

8.01.02 Shifts......................................................................................................................................4

8.01.03 Time Released .......................................................................................................................4

8.02 40 Hour/Week Schedule..................................................................................................................4

8.02.01 Work Week............................................................................................................................4

8.02.02 Schedule.................................................................................................................................5

8.03 Job Assignment ...............................................................................................................................5

8.03.01 Fire Prevention Assignment...................................................................................................5

8.03.02 Marine Rescue Captain Assignment......................................................................................5

8.04 Staffing............................................................................................................................................5

8.05 Shift and Station Bidding ................................................................................................................5

8.06 Vacancy Bidding .............................................................................................................................5

8.08 Marine Safety Officer Shift Differential..........................................................................................5 SECTION 9.00 - PERSONNEL ACTION .......................................................................................................6

9.01 Performance Evaluations.................................................................................................................6

9.02 Probation .........................................................................................................................................6

21.10 9.02.01 Probationary Period ...............................................................................................................6

9.02.02 Objective of Probationary Period...........................................................................................7

9.02.03 Rejection of Probationary Employee .....................................................................................7

9.02.04 Extension of Probation...........................................................................................................7

9.03 Personnel Files ................................................................................................................................7 SECTION 10.00 - PAY RATES AND PRACTICES.......................................................................................7

10.01 Salary Steps.................................................................................................................................7

10.01.01 Salary Rates Upon Appointment .......................................................................................7

10.01.02 Advancement Within the Range........................................................................................8

10.02 Salary ..........................................................................................................................................8

10.03 P.E.R.S........................................................................................................................................9

10.03.01 Employees Hired on or Before September 2, 2011 (Tier I)...............................................9

10.03.02 Employees Hired On or After September 3, 2011 (Tier II).............................................10

10.03.03 Employees Hired On or After January 1, 2013 (Tier III) ................................................10

10.03.04 Retirement, All Employees..............................................................................................11

10.03.05 Sick Leave Conversion....................................................................................................11

10.04 Overtime ...................................................................................................................................12

10.04.01 56-Hour Work Week .......................................................................................................12

10.04.02 40-Hour Work Week .......................................................................................................12

10.05 Marine Safety Officer CalPERS ...............................................................................................13

10.06 Call Back...................................................................................................................................13

10.06.01 Marine Safety Officer Call-Back.....................................................................................13

10.06.01.01 Callback by Phone or Computer .................................................................................13

10.06.01.02 Callback to Worksite..................................................................................................14

10.07 Holidays....................................................................................................................................14

10.07.01 56-Hour per Week Employees.........................................................................................14

10.07.02 40-Hour per Week Employees.........................................................................................15

10.07.03 Marine Safety Officer Holidays.......................................................................................16

10.07.03.01 Fixed Holidays............................................................................................................16

10.08 Working Out of Classification ..................................................................................................17

10.09 Special Project Pay....................................................................................................................17

10.10 Special Detail ............................................................................................................................18

10.11 Bilingual Pay.............................................................................................................................18

21.11 10.12 Education Incentive...................................................................................................................18

10.13 Longevity ..................................................................................................................................19

10.14 Paramedic Program...................................................................................................................20

10.15 Emergency Medical Technician................................................................................................20

10.16 Paramedic Premium Pay for Marine Safety Administrative Captain ........................................20

10.17 Rescue Swimmer Assignment and Compensation ....................................................................20

10.18 Haz-Mat Technician Assignment and Compensation ...............................................................20

10.19 On-Call Fire Investigator Assignment and Compensation........................................................20 SECTION 11.00 - SICK LEAVE...................................................................................................................21

11.01 Definition ..................................................................................................................................21

11.02 Accrual......................................................................................................................................21

11.02.01 24-Hour Shift Personnel ..................................................................................................21

11.02.02 40-Hour per Week Personnel ..........................................................................................21

11.02.03 Paid Status.......................................................................................................................21

11.03 Limitations................................................................................................................................22

11.04 Sick Leave Incentive .................................................................................................................22

11.04.01 56-Hour per Week Employees.........................................................................................22

11.04.02 40-Hour per Week Employees.........................................................................................22 SECTION 12.00 - VACATION .....................................................................................................................23

12.01 Accrual......................................................................................................................................23

12.01.01 40-hour/week schedules ..................................................................................................23

12.01.02 56-hours/week schedules.................................................................................................23

12.02 Illness During Vacation.............................................................................................................23

12.03 Union Leave Bank.....................................................................................................................23 SECTION 13.00 - BEREAVEMENT LEAVE...............................................................................................25

13.01 Marine Safety Officer Bereavement Leave..............................................................................26 SECTION 14.00 - LEAVES OF ABSENCE..................................................................................................26

14.01 Unpaid Leaves of Absence........................................................................................................26

14.01.01 Medical or Personal Leave ..............................................................................................27

14.01.02 Pregnancy Disability Leave.............................................................................................27

14.01.03 Family Leave...................................................................................................................27

14.01.04 Continuation of Insurance Benefits During Unpaid Leaves of Absence .........................29

14.02 Paid Leaves of Absence ............................................................................................................30

21.12 14.02.01 Paid Birth/Adoptive Leave ..............................................................................................30

14.02.02 Military Leave .................................................................................................................30 SECTION 15.00 - UNIFORMS, LINENS, AND PERSONAL PROPERTY ................................................30

15.01 Uniforms...................................................................................................................................30

15.02 Linens........................................................................................................................................31

15.03 Personal Property ......................................................................................................................31 SECTION 16.00 - MISCELLANEOUS PROVISIONS.................................................................................31

16.01 Additional Duties......................................................................................................................31

16.02 Miscellaneous Employment ......................................................................................................31

16.03 Promotions................................................................................................................................31

16.04 Layoff Policy & Procedure .......................................................................................................32

16.04.01 Layoffs ............................................................................................................................32

16.04.02 Bumping ..........................................................................................................................32

16.04.03 Notification......................................................................................................................32

16.04.04 Reinstatement ..................................................................................................................32

16.05 Consolidation Merger................................................................................................................32

16.06 Tuition Reimbursement.............................................................................................................33

16.07 Captain/Engineer Promotional Exam........................................................................................33 SECTION 17.00 - BENEFITS........................................................................................................................33

17.01 Medical Plan/Flexible Benefits.................................................................................................33

17.01.01 Medical Waiver Benefit...................................................................................................34

17.01.02 Optional Benefits.............................................................................................................34

17.02 Dental Plan................................................................................................................................34

17.03 Vision Insurance .......................................................................................................................35

17.04 Retired Health Program.............................................................................................................35

17.04.01 Retiree Medical/CalPERS Medical Plan .........................................................................35

17.04.02 Retiree Medical Incentive................................................................................................35

17.04.03 Disability Retirement before Eligible Age for Service Retirement .................................36

17.05 Life Insurance ...........................................................................................................................36

17.06 Long-Term Disability................................................................................................................36

17.07 Principal Domestic Partners......................................................................................................36

17.08 Retiree Medical Trust................................................................................................................37 SECTION 18.00 - GRIEVANCE PROCEDURE...........................................................................................38

21.13 18.01 Purpose......................................................................................................................................38

18.02 Definitions.................................................................................................................................38

18.03 Limitations................................................................................................................................38

18.04 Consolidation ............................................................................................................................39

18.05 Procedures.................................................................................................................................39

18.05.01 Step I ...............................................................................................................................39

18.05.02 Step II..............................................................................................................................39

18.05.03 Step III.............................................................................................................................40

18.05.04 Step IV............................................................................................................................40 SECTION 19.00 - DISCIPLINARY APPEALS PROCEDURE....................................................................41

19.01 Definition ..................................................................................................................................41

19.02 Pre-Action Procedure ................................................................................................................41

19.02.01 Step I ...............................................................................................................................41

19.02.02 Step II..............................................................................................................................41

19.03 Post-Action Appeal ...................................................................................................................41

19.03.01 Step III.............................................................................................................................41

19.03.02 Step IV.............................................................................................................................42

19.04 Firefighters Procedural Bill of Rights Act.................................................................................43 SECTION 20.00 - WRITTEN REPRIMANDS..............................................................................................43 SECTION 21.00 - SEVERABILITY..............................................................................................................43 SECTION 22.00 - RENEGOTIATIONS........................................................................................................43 SECTION 1.00 - TERM...................................................................................................................................1 SECTION 2.00 - PREAMBLE.........................................................................................................................1 SECTION 3.00 - NO ABROGATION OF RIGHTS........................................................................................1 SECTION 4.00 - UNION/MANAGEMENT RELATIONS.............................................................................1

4.01 Association Use of City E-Mail System..........................................................................................1 SECTION 5.00 - UNION RECOGNITION/AGENCY SHOP........................................................................2

5.01 Recognition .....................................................................................................................................2

5.02 Payroll Deduction............................................................................................................................2

5.02.01 Payroll Deductions.................................................................................................................2

5.02.02 Union’s Certification .............................................................................................................2

5.03 Indemnification.....................................................................................................................................3

5.04 Union Notification...........................................................................................................................3

21.14 SECTION 6.00 - FULL UNDERSTANDING, MODIFICATION, WAIVER ................................................3 SECTION 7.00 - NO DISCRIMINATION ......................................................................................................4 SECTION 8.00 - WORK WEEK/SHIFTS/ASSIGNMENTS ..........................................................................4

8.01 56 Hour/Week Schedule..................................................................................................................4

8.01.01 Work Week............................................................................................................................4

8.01.02 Shifts......................................................................................................................................4

8.01.03 Time Released .......................................................................................................................4

8.02 40 Hour/Week Schedule..................................................................................................................4

8.02.01 Work Week............................................................................................................................4

8.02.02 Schedule.................................................................................................................................5

8.03 Job Assignment ...............................................................................................................................5

8.03.01 Fire Prevention Assignment...................................................................................................5

8.03.02 Marine Rescue Captain Assignment......................................................................................5

8.04 Staffing............................................................................................................................................5

8.05 Shift and Station Bidding ................................................................................................................5

8.06 Vacancy Bidding .............................................................................................................................5

8.08 Marine Safety Officer Shift Differential..........................................................................................5 SECTION 9.00 - PERSONNEL ACTION .......................................................................................................6

9.01 Performance Evaluations.................................................................................................................6

9.02 Probation .........................................................................................................................................6

9.02.01 Probationary Period ...............................................................................................................6

9.02.02 Objective of Probationary Period...........................................................................................6

9.02.03 Rejection of Probationary Employee .....................................................................................7

9.02.04 Extension of Probation...........................................................................................................7

9.03 Personnel Files ................................................................................................................................7 SECTION 10.00 - PAY RATES AND PRACTICES.......................................................................................7

10.01 Salary Steps.................................................................................................................................7

10.01.01 Salary Rates Upon Appointment .......................................................................................7

10.01.02 Advancement Within the Range........................................................................................7

10.02 Salary ..........................................................................................................................................8

10.03 P.E.R.S........................................................................................................................................9

10.03.01 Employees Hired on or Before September 2, 2011 (Tier I)...............................................9

10.03.02 Employees Hired On or After September 3, 2011 (Tier II).............................................10

21.15 10.03.03 Employees Hired On or After January 1, 2013 (Tier III) ................................................10

10.03.04 Retirement, All Employees..............................................................................................11

10.03.05 Sick Leave Conversion....................................................................................................11

10.04 Overtime ...................................................................................................................................12

10.04.01 56-Hour Work Week .......................................................................................................12

10.04.02 40-Hour Work Week .......................................................................................................12

10.05 Marine Safety Officer CalPERS ...............................................................................................13

10.06 Call Back...................................................................................................................................13

10.06.01 Marine Safety Officer Call-Back.....................................................................................13

10.06.01.01 Callback by Phone or Computer .................................................................................13

10.06.01.02 Callback to Worksite..................................................................................................14

10.07 Holidays....................................................................................................................................14

10.07.01 56-Hour per Week Employees.........................................................................................14

10.07.02 40-Hour per Week Employees.........................................................................................15

10.07.03 Marine Safety Officer Holidays.......................................................................................16

10.07.03.01 Fixed Holidays............................................................................................................16

10.08 Working Out of Classification ..................................................................................................16

10.09 Special Project Pay....................................................................................................................17

10.10 Special Detail ............................................................................................................................17

10.11 Bilingual Pay.............................................................................................................................18

10.12 Education Incentive...................................................................................................................18

10.13 Longevity ..................................................................................................................................19

10.14 Paramedic Program...................................................................................................................20

10.15 Emergency Medical Technician................................................................................................20

10.16 Paramedic Premium Pay for Marine Safety Administrative Captain ........................................20

10.17 Rescue Swimmer Assignment and Compensation ....................................................................20

10.18 Haz-Mat Technician Assignment and Compensation ...............................................................20

10.19 On-Call Fire Investigator Assignment and Compensation........................................................20 SECTION 11.00 - SICK LEAVE...................................................................................................................21

11.01 Definition ..................................................................................................................................21

11.02 Accrual......................................................................................................................................21

11.02.01 24-Hour Shift Personnel ..................................................................................................21

11.02.02 40-Hour per Week Personnel ..........................................................................................21

21.16 11.02.03 Paid Status.......................................................................................................................21

11.03 Limitations................................................................................................................................22

11.04 Sick Leave Incentive .................................................................................................................22

11.04.01 56-Hour per Week Employees.........................................................................................22

11.04.02 40-Hour per Week Employees.........................................................................................22 SECTION 12.00 - VACATION .....................................................................................................................23

12.01 Accrual......................................................................................................................................23

12.01.01 40-hour/week schedules ..................................................................................................23

12.01.02 56-hours/week schedules.................................................................................................23

12.02 Illness During Vacation.............................................................................................................23

12.03 Union Leave Bank.....................................................................................................................23 SECTION 13.00 - BEREAVEMENT LEAVE...............................................................................................25

13.01 Marine Safety Officer Bereavement Leave..............................................................................26 SECTION 14.00 - LEAVES OF ABSENCE..................................................................................................26

14.01 Unpaid Leaves of Absence........................................................................................................26

14.01.01 Medical or Personal Leave ..............................................................................................26

14.01.02 Pregnancy Disability Leave.............................................................................................27

14.01.03 Family Leave...................................................................................................................27

14.01.04 Continuation of Insurance Benefits During Unpaid Leaves of Absence .........................29

14.02 Paid Leaves of Absence ............................................................................................................30

14.02.01 Paid Birth/Adoptive Leave ..............................................................................................30

14.02.02 Military Leave .................................................................................................................30 SECTION 15.00 - UNIFORMS, LINENS, AND PERSONAL PROPERTY ................................................30

15.01 Uniforms...................................................................................................................................30

15.02 Linens........................................................................................................................................31

15.03 Personal Property ......................................................................................................................31 SECTION 16.00 - MISCELLANEOUS PROVISIONS.................................................................................31

16.01 Additional Duties......................................................................................................................31

16.02 Miscellaneous Employment ......................................................................................................31

16.03 Promotions................................................................................................................................31

16.04 Layoff Policy & Procedure .......................................................................................................32

16.04.01 Layoffs ............................................................................................................................32

16.04.02 Bumping ..........................................................................................................................32

21.17 16.04.03 Notification......................................................................................................................32

16.04.04 Reinstatement ..................................................................................................................32

16.05 Consolidation Merger................................................................................................................32

16.06 Tuition Reimbursement.............................................................................................................33

16.07 Captain/Engineer Promotional Exam........................................................................................33 SECTION 17.00 - BENEFITS........................................................................................................................33

17.01 Medical Plan/Flexible Benefits.................................................................................................33

17.01.01 Medical Waiver Benefit...................................................................................................33

17.01.02 Optional Benefits.............................................................................................................34

17.02 Dental Plan................................................................................................................................34

17.03 Vision Insurance .......................................................................................................................35

17.04 Retired Health Program.............................................................................................................35

17.04.01 Retiree Medical/CalPERS Medical Plan .........................................................................35

17.04.02 Retiree Medical Incentive................................................................................................35

17.04.03 Disability Retirement before Eligible Age for Service Retirement .................................35

17.05 Life Insurance ...........................................................................................................................36

17.06 Long-Term Disability................................................................................................................36

17.07 Principal Domestic Partners......................................................................................................36

17.08 Retiree Medical Trust................................................................................................................37 SECTION 18.00 - GRIEVANCE PROCEDURE...........................................................................................38

18.01 Purpose......................................................................................................................................38

18.02 Definitions.................................................................................................................................38

18.03 Limitations................................................................................................................................38

18.04 Consolidation ............................................................................................................................38

18.05 Procedures.................................................................................................................................39

18.05.01 Step I ...............................................................................................................................39

18.05.02 Step II..............................................................................................................................39

18.05.03 Step III.............................................................................................................................39

18.05.04 Step IV............................................................................................................................40 SECTION 19.00 - DISCIPLINARY APPEALS PROCEDURE....................................................................40

19.01 Definition ..................................................................................................................................40

19.02 Pre-Action Procedure ................................................................................................................41

19.02.01 Step I ...............................................................................................................................41

21.18 19.02.02 Step II..............................................................................................................................41

19.03 Post-Action Appeal ...................................................................................................................41

19.03.01 Step III.............................................................................................................................41

19.03.02 Step IV.............................................................................................................................42

19.04 Firefighters Procedural Bill of Rights Act.................................................................................42 SECTION 20.00 - WRITTEN REPRIMANDS..............................................................................................42 SECTION 21.00 - SEVERABILITY..............................................................................................................43 SECTION 22.00 - RENEGOTIATIONS........................................................................................................43

21.19 EXHIBIT A: Statement of Equal Employment Opportunity and Non-Discrimination Policy EXHIBIT B: Discrimination/Harassment Policy Implementation and Complaint Procedure EXHIBIT C: Section 7k Work Periods and Maximum Non-Overtime Hours EXHIBIT D: Santa Cruz Fire Department Policy & Procedures Manual Section 4-13 Vacation Selection Process for Shift Personnel (September 21, 2015) EXHIBIT E: Salary Schedule
EXHIBIT F: Respectful Workplace Conduct Policy
EXHIBIT G: California Firefighters Benefit Trust Joinder Agreement for Association

21.20 1

MEMORANDUM OF UNDERSTANDING

CITY OF SANTA CRUZ AND
SANTA CRUZ FIREFIGHTERS, I.A.F.F. LOCAL 1716
September 217, 20225 – September June 3026, 20285
SECTION 1.00 - TERM
The term of this Memorandum of Understanding (Memorandum) shall commence September 217, 20252, or the pay period when Council approves the successor MOU in open session, whichever is later, and expire the pay period ending on September June 3026, 20285.

SECTION 2.00 - PREAMBLE
This Memorandum is entered into by the City of Santa Cruz (hereinafter referred to as the City) and the Santa Cruz Firefighters, I.A.F.F. Local 1716 (hereinafter referred to as the Union). For the purpose of this Memorandum, employee shall mean a regular, full-time Firefighter, Fire Engineer, Fire Captain, Deputy Fire Marshal, or Fire Prevention Inspector(s) and Marine Safety Officer(s). This Memorandum is subject to Sections 3500-3510 of the Government Code of the State of California, the City of Santa Cruz Charter and Municipal Code, and the Santa Cruz Personnel Rules and Regulations.

SECTION 3.00 - NO ABROGATION OF RIGHTS
The parties acknowledge that the City’s responsibilities and rights as indicated in a) Article XI of the Charter, b) current Article 1, Section 1, (Appendix A) of the City’s Personnel Rules and Regulations, and c) all applicable State or Municipal laws are neither abrogated nor made subject to the meet and confer process by approval of the terms of this Memorandum. The parties further acknowledge the rights of employees are neither abrogated nor diminished by the adoption of this Memorandum.

SECTION 4.00 - UNION/MANAGEMENT RELATIONS
A. The Union and management recognize their obligation to provide services of the highest quality and efficiency. To this end, the City and the Union affirm their joint responsibility to endeavor to promote harmonious labor/management relations.

B. The City intends to meet its obligation under the California Occupational Safety and Health Act and shall adopt and use safeguards, devices and practices, reasonably adequate to render employment safe. The Union agrees to assist the City by working in concert with management to encourage employees to work safely.

4.01 ASSOCIATION USE OF CITY E-MAIL SYSTEM
The Union may be permitted to use City e-mail for the following purposes:
o Notice of Union meetings and agendas
o Notice of Union sponsored events

21.21 2
o Notice of Union elections
o Reports from Union committees
o Rulings and discussion of Union policies
o Union newsletters
o Other official Union business as may be necessary and which conforms to the guidelines outlined below.

No notice or announcement which contains defamatory statements about the City, including any City department, any City official, or any City employee(s) shall be transmitted by City email. The City reserves the right to refuse to allow notices to be sent through the City’s e-mail system that interfere with the Department’s operational needs, workflow, or mission.

Any violation of this section shall entitle the City to cancel its provisions and revoke the Union’s privilege to use the City’s e-mail system pursuant to this section.

The parties agree to discuss any conflicts that may arise.

SECTION 5.00 - UNION RECOGNITION/AGENCY SHOP

5.01 RECOGNITION
Pursuant to the Meyer-Milias-Brown Act and the City’s Personnel Rules and Regulations, the Union is certified as the recognized employee organization representing regular, full-time Firefighters, Fire Engineers, Fire Captains, Deputy Fire Marshal, and Fire Prevention Inspector(s), and Marine Safety Officer(s).

5.02 PAYROLL DEDUCTION

5.02.01 PAYROLL DEDUCTIONS
The City shall deduct Union membership dues and any other mutually agreed upon payroll deductions, to the extent permitted by law, from the monthly pay of each member employee. The Union will provide the City with information regarding the amount of dues deductions and the list of Union member employees who have affirmatively consented to or authorized dues deductions.

The City shall remit the deducted dues and any other mutually agreed payroll deduction, to the extent permitted by law, to the Union as soon as possible after the deduction.

The City agrees to direct each member employee to the Union with regard to any questions or concerns related to membership dues or any other mutually agreed payroll deduction, to the extent permitted by law.

The Union is responsible for providing the City with timely information regarding changes to member employees’ dues and any other lawful union-related payroll deduction.

5.02.02 UNION’S CERTIFICATION

21.22 3
The City shall make payroll deductions in reliance on the Union’s certification certifying that the Union has and will maintain an authorization, signed by each member employee who affirmatively consents to pay Union membership dues. Similarly, The City shall only cancel or modify any membership dues or any other mutually agreed payroll deduction, to the extent permitted by law, for any member employees in reliance on the information provided by the Union.

The City shall not request the Union to provide a copy of any member employees’ authorization unless a dispute arises about the existence or terms of the authorization.

5.03 INDEMNIFICATION
The Union shall indemnify, defend, protect and hold harmless the City and its elected and appointed officials, officers, employees, officers and agents (collectively hereafter the “Indemnitees”) from and against any and all claims, liabilities, losses, damages, fines, penalties, claims, demands, suits, actions, causes of action, judgments, costs and expenses (including, but not limited to, reasonable attorneys’ fees and court costs) arising from the application of any provisions under Section 5.02, including, but not limited to, any claims made by any member employees for the membership dues deductions the City made in reliance on the Union’s certification, and any claims made by any member employees for any deduction cancellation or modification the City made in reliance on the information provided by the Union.

In the event any such action or proceeding is brought against the City by reason of any such claim, the Union, upon notice from the City, covenants to defend such action or proceeding by counsel reasonably satisfactory to the City. Further, the Union agrees to indemnify and hold harmless the Indemnitees for any loss or damage arising from the Union’s actions or inactions under Section 5.02.

5.04 UNION NOTIFICATION
Except in cases of bona fide emergencies, the Union shall be given seven (7) working days advance written notification of any ordinance, rule, resolution, or regulation relating to matters within the scope of representation proposed to be adopted by the City Council, or management, and shall be given the opportunity to meet and confer with the City representative prior to its adoption.

SECTION 6.00 - FULL UNDERSTANDING, MODIFICATION, WAIVER This agreement, plus any written departmental rules or regulations sets forth the full and entire understanding of the parties regarding the matters set forth herein and any other prior or existing understanding or agreements by the parties, whether formal or informal, regarding any such matters are hereby superseded or terminated in their entirety.

It is agreed and understood that each party hereto voluntarily and unqualifiedly waives its right to

21.23 4
negotiate and agrees that the other party shall not be required to negotiate, with respect to any matter covered herein.

It is further agreed and understood that, except in cases of emergency, the City shall not implement any changes to any matter within scope, as defined by the Meyers-Milias-Brown Act, as amended, not covered herein without first having met and conferred with the Union. For purposes of this Agreement, emergency means any sudden and unforeseeable incident or occurrence. Changes implemented pursuant to this paragraph shall only be in effect for the duration of the emergency causing the change.

No agreement, alteration, understanding, variation, waiver, or modification of any of the terms or provisions contained herein shall in any manner be binding upon the parties hereto unless made and executed in writing by all parties hereto and, if required, approved by the City and ratified by the membership of the Union.

The waiver of any breach of any term or condition of this Agreement by either party shall not constitute a precedent in the future enforcement of all its terms and provisions.

SECTION 7.00 - NO DISCRIMINATION
The City and the Union agree to adhere to the City Council policies pertaining to equal employment opportunity and discriminatory harassment as listed in Exhibits A & B, as well as applicable Federal and State discrimination laws.

SECTION 8.00 - WORK WEEK/SHIFTS/ASSIGNMENTS

8.01 56 HOUR/WEEK SCHEDULE

8.01.01 WORK WEEK
The work week shall average 56 hours.

8.01.02 SHIFTS
On-duty shifts shall commence at the hour of 7:00 a.m. and shall be completed at 7:00 a.m. the following day.

8.01.03 TIME RELEASED
Employees shall not be released from duty at the end of a shift until the employee is relieved by a shift-employee replacing the position then held by such employee unless otherwise directed by management personnel.

8.02 40 HOUR/WEEK SCHEDULE

8.02.01 WORK WEEK
The work week for employees assigned to a 40-hour/week schedule shall typically consist of five consecutive days totaling 40 hours. An alternate work schedule (such as a 4-10 plan) may be assigned by the Fire Chief.

21.24 5

8.02.02 SCHEDULE
The Fire Chief shall assign starting and quitting times to these employees to meet operational needs. Affected employees will be notified five (5) working days in advance of changes in work schedules. This shall not preclude the City from effecting schedule changes due to operational needs, overtime or emergency work.

8.03 JOB ASSIGNMENT

8.03.01 FIRE PREVENTION ASSIGNMENT
An employee may be temporarily assigned from a fire suppression position to a fire prevention position. Such a temporary assignment may be no longer than six (6) months in duration and an assignment may not occur more than once in a two (2) year period.

Assignment duration may exceed a six (6) month period in cases of bona fide medical/disability condition of employee or upon mutual consent.

8.03.02 MARINE RESCUE CAPTAIN ASSIGNMENT
A Captain may be temporarily assigned from a fire suppression position to the Marine Rescue Division. Captains assigned to the Marine Rescue Program will be allowed to work an alternate 40 hour per week work schedule. This assignment will not exclude this employee from overtime shift work in accordance with Fire Department policies, procedures, and practices. The Marine Rescue Captain Assignment will be in accordance with the parameters set forth in the Santa Cruz City Fire Department Shift and Station Bidding Procedure.

8.04 STAFFING
Staffing will be in accordance with Policy and Procedure Manual, Article 6, Section #6-5 Equipment Staffing.

8.05 SHIFT AND STATION BIDDING
Shift and Station bidding will be in accordance with the Department’s “Shift and Station Bidding Procedure.”

8.06 VACANCY BIDDING
Vacancy bidding will be in accordance with Policy and Procedure Manual, Article 4, Section #4-12 Vacancy Bidding.

8.07 Marine Safety Officer Lunch Period
The Marine Safety Officer shall be entitled to and expected to take an uninterrupted, unpaid lunch period of a minimum of thirty (30) minutes at or about the mid-point of their workday.

Supervisors may occasionally approve flexible scheduling of lunch periods for individual employees. Regular schedules that do not provide the required lunch period at or about the mid-point of the workday will not be allowed.

8.08 MARINE SAFETY OFFICER SHIFT DIFFERENTIAL
The Marine Safety Officer who is required and authorized by management to work, and

21.25 6
actually works, a regularly scheduled shift at least four hours or more of which fall between the hours of 6:00 p.m. and 6:00 a.m. shall be paid a shift differential of ninety cents ($.90) per hour or five percent (5%), whichever is greater, for each hour worked within the shift differential period of 6:00 p.m. and 6:00 a.m.

Shift differential shall not apply to:
a. Paid leave hours, including vacation, sick leave, holidays, and other paid leaves provided in Section 17.01.

Hours that are worked between 6:00pm and 6:00am as a result of call-back, duty assignment, or overtime.

SECTION 9.00 - PERSONNEL ACTION

9.01 PERFORMANCE EVALUATIONS
It is compulsory that all regular employees receive an annual written performance evaluation from their supervisor. All original appointments and newly hired employees will be evaluated as follows:

Regular employees will be evaluated annually on their merit review date.

Employees Hired on or after 12/1/18
 First (1st) evaluation: at completion of six (6) months of regular service following completion of Academy
 Second (2nd) evaluation: at completion of probation, twelve (12) months of regular service following completion of Academy
 Third (3rd) evaluation: at completion of 18 months of regular service following completion of Academy.

Subsequently, a performance evaluation will be conducted twelve (12) months after the date of the third (3rd) evaluation; this date becomes the employee’s annual evaluation date.

9.02 PROBATION

9.02.01 PROBATIONARY PERIOD
A. All original appointments (newly hired Firefighters) shall be subject to a probationary period that begins on the first day of regular City employment and ends twelve (12) months after the successful completion of the Fire Academy. All Fire Inspectors and Marine Safety Officers shall be subject to a twelve (12) month probationary period that begins on the first day of regular City employment.

B. All promotional and re-hire appointments shall be subject to a probationary period of twelve (12) months from the date of promotion or the date of re-hire.

Any time spent by a probationary employee on unpaid status shall not be counted as

21.26 7
qualifying service toward completion of the probationary period.

9.02.02 OBJECTIVE OF PROBATIONARY PERIOD
The probationary period shall be regarded as part of the selection process and shall be utilized for training the new employee on work assignments and standards, and observing and evaluating the employee’s performance.

9.02.03 REJECTION OF PROBATIONARY EMPLOYEE
During the probation period, an employee may be rejected at any time by the appointing authority without the right of appeal. Notification of rejection shall be served to the probationary employee in writing. Any promoted employee who is rejected during the probationary period shall be reinstated to the position from which promotion occurred; unless the rejection is due to discharge in which case no reinstatement shall occur.

9.02.04 EXTENSION OF PROBATION
All efforts will be made to sufficiently evaluate the probationary employee during the assigned period, which includes time spent in the Fire Academy. An extension of the probationary period may, however, be recommended by the appointing authority when good cause exists. Such extensions shall be for a specific period of time not to exceed three (3) months.

9.03 PERSONNEL FILES
There shall be only one official personnel file which shall be maintained in the City’s Human Resources Department. Employees shall have the right to review their personnel files or authorize, in writing, review by their representatives. No adverse material will be placed in an employee’s personnel file without prior notice and a copy given to the employee. Employees may, within thirty (30) days of receipt of these, cause to be placed in their personnel files responses to adverse material inserted therein.

SECTION 10.00 - PAY RATES AND PRACTICES

10.01 SALARY STEPS
The classifications in the unit shall be assigned salary ranges that increase by 6% between steps.

10.01.01 SALARY RATES UPON APPOINTMENT
New employees shall be hired at the first step of the classification’s salary range; unless a higher starting step is recommended by the Fire Chief, based on the employee’s advanced qualifications for the position and such recommendation is approved by the Chief People Officer (Director of Human Resources) and City Manager.

Promoted employees shall receive a minimum six percent (6%) increase. If such increase does not result in them being placed at least at the first step of the new classification’s salary range they will be placed at the first step of the new classification’s salary range. If such increase results in them being placed within the salary range of the new classification but between existing steps, they will be placed at the next higher step in the new range.

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10.01.02 ADVANCEMENT WITHIN THE RANGE
A. Advancement within a classification’s salary range shall normally be granted on the employee’s scheduled merit review date. Such advancements shall be based solely on meritorious job performance as documented by a satisfactory performance evaluation and successful completion of department required training standards.

B. Merit increase dates are aligned with evaluation dates. Newly hired Firefighters are eligible for their first merit increase at the end of their first (6) months of regular employment with the City following completion of the Academy. Newly hired Firefighters are eligible for their second merit increase after completion of 18 months of regular employment with the City following completion of the Academy.

The employee shall be eligible for subsequent merit increases after each full year on paid status from the last merit review date, continuing until the employee is promoted or the top of the salary range is attained.

Newly hired Fire Inspectors and Marine Safety Officers are eligible for their first merit increase at the end of their first six (6) months of regular employment with the City. Newly hired Fire Inspectors and Marine Safety Officers are eligible for their second merit increase after completion of eighteen (18) months of regular employment with the City. The employee shall be eligible for subsequent merit increases after each full year on paid status from the last merit review date, continuing until the employee is promoted or the top of the salary range is attained.

C. Merit increases shall normally be from one pay step to the next higher pay step.

Increases of greater than one (1) step may, however, be recommended by the Fire Chief when exceptional performance has been demonstrated by the employee. Such step increases must be approved by the City Manager.

D. A merit increase may be denied by the Fire Chief when an employee’s job performance falls below the acceptable work standards for the duties assigned. The Fire Chief may, in such a case, recommend that the employee’s work performance be reviewed again at a specific time before the next review date. If a merit increase is granted at that time, the employee’s original review date shall not change and she/he shall be eligible for the next merit increase after one (1) year on a paid status from the original review date.

E. An employee’s scheduled merit review date shall be adjusted for any time spent by the employee on unpaid status.

F. Upon receipt of satisfactory annual evaluation, the effective date for a merit increase shall be the first day of the pay period which includes the employee’s merit review date.

10.02 SALARY
 Effective the pay period that begins on September 17, 2022, the salary for all bargaining unit members shall be increased by an additional three-point forty-three percent (3.43%).

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 Effective the pay period that begins on September 16, 2023, the salary for all bargaining unit members shall be increased by an additional three percent (3%).  Effective the pay period that begins on September 14, 2024, the salary for all bargaining unit members shall be increased by an additional five percent (5%).  Effective September 17, 2022, the salary for the Marine Safety Officer shall be adjusted to be reduced from 10 steps (A-J) to 8 steps (A-H), with 6% between each step. The previous step I in the Supervisory Unit, will now become Step G of the Firefighters Unit.
 Effective the pay period that begins on September 27, 2025, or the pay period when Council approves the successor MOU in open session, whichever is later, the salary for all bargaining unit members shall be increased by an additional three percent (3%).  Effective the pay period that begins on July 4, 2026, the salary for all bargaining unit members shall be increased by an additional three percent (3%).  Effective the pay period that begins on July 3, 2027, the salary for all bargaining unit members shall be increased by an additional three percent (3%).

10.03 P.E.R.S.

10.03.01 EMPLOYEES HIRED ON OR BEFORE SEPTEMBER 2, 2011 (TIER I) This section 10.03.01 shall apply to employees hired on or before September 2, 2011, who are contributing members of CalPERS.

A. Final Compensation Based on the Single Highest Year
For purposes of determining a retirement benefit, final compensation for employees covered by this section 10.03.01 shall be based on the single highest year, defined by CalPERS as any consecutive one-year period with the highest average pay rate and special compensation.

B. 3.0% @ 50 Pension Formula
The 3.0% @ 50 pension formula shall be available to all employees covered by this section 10.03.01 who are contributing members of CalPERS. Additionally, the City provides the Pre-Retirement Optional Settlement 2W Death Benefit to employees covered by this section 10.03.01.

C. Required Employee Contribution
Members covered by this section 10.03.01 will contribute the employee contribution amount established by CalPERS for the 3.0% @ 50 pension formula. The required contribution amount was 9.0% as of the date of this MOU.

D. Additional Required Employee Contribution
In addition to the required employee contribution, starting with the pay period

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beginning September 26, 2015 members covered by this section 10.03.01 will contribute an additional 3.0% (total 12.00%).

10.03.02 EMPLOYEES HIRED ON OR AFTER SEPTEMBER 3, 2011 (TIER II) This section 10.03.02 shall apply to employees hired on or after September 3, 2011 and prior to January 1, 2013 who are contributing members of CalPERS.

A. Final Compensation Based on Three Year Average
For purposes of determining a retirement benefit, final compensation for employees covered by this section 10.03.02 shall be based on the employee’s highest three year average, defined by CalPERS as any consecutive three-year period with the highest average pay rate and special compensation.

B. 3.0% @ 55 Pension Formula
The 3.0% @ 55 pension formula shall be available to all employees covered by this section 10.03.02 who are contributing members of CalPERS. Additionally, the City provides the Pre-Retirement Optional Settlement 2W Death Benefit to employees covered by this section 10.03.02.

C. Required Employee Contribution
Members covered by this section 10.03.02 will contribute the employee contribution amount established by CalPERS for the 3.0% @ 55 pension formula. The required contribution amount was 9.0% as of the date of this MOU.

D. Additional Required Employee Contribution
In addition to the required employee contribution, starting with the pay period beginning September 26, 2015 members covered by this section 10.03.02 will contribute an additional 3.0% (total 12.00%).

10.03.03 EMPLOYEES HIRED ON OR AFTER JANUARY 1, 2013 (TIER III) This section 10.03.03 shall apply to employees hired on or after January 1, 2013 who are contributing members of CalPERS.

A. Final Compensation Based on Three Year Average
For purposes of determining a retirement benefit, final compensation for employees covered by this section 10.03.03 shall be based on the employee’s highest three year average, defined by CalPERS as any consecutive three-year period with the highest average pay rate and special compensation.

B. 2.7% @ 57 Pension Formula
The 2.7% @ 57 pension formula shall be available to all employees covered by this section 10.03.03 who are contributing new members of CalPERS. Additionally, the City provides the Pre-Retirement Optional Settlement 2W Death Benefit to employees covered by this section 10.03.03.

Employees covered by this section 10.03.03 who are classic members as defined by CalPERS may be eligible for a different pension formula.

C. Required Employee Contribution

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Members covered by this section 10.03.03 will contribute the employee contribution amount established by CalPERS for their 2.7% at 57 pension formula. The required contribution amount for the 2.7% @ 57 was 12.75% as of the date of this MOU is

12.75%.

In the event employee contribution rates are adjusted by CalPERS during the term of this MOU, the employee contribution will be recalculated based upon the updated required employee contribution rate established by CalPERS.

D. Additional Required Employee Contribution
In addition to the required employee contribution, starting with the pay period beginning July 6, 2013 members covered by this section 10.03.03 will contribute an additional 3.0% (total 15.75%).

10.03.04 RETIREMENT, ALL EMPLOYEES
The City will maintain the IRS 414(h)(2) provision (for tax purposes only) allowing the employee to defer State and Federal income taxes on their CalPERS contributions.

10.03.05 SICK LEAVE CONVERSION
The City’s contract with CalPERS includes the service credit for unused sick leave (Section 20965).

The Parties agree that the City and Local 1716 will share the cost of will take all administrative steps necessary to of conducting an actuarial study to allow employees the choice of selecting the CalPERS service credit option for employees retiring with at least twenty years of regular service and the ability to also elect to convert a maximum of 1,500 hours of their accrued sick leave (banked and unbanked) in 100 hour increments to an additional 1% contribution by the City towards the cost of their retiree medical benefits as defined by Sections 17.04.01 (Retiree Medical Plan) and 17.04.02 (Retiree Medical Incentive) of this memorandum. For example, the maximum conversion of 1,500 hours would equal a 15% increase in the City’s contribution towards a retiree medical plan for a maximum 90% contribution. All restrictions and requirements of sections 17.04.01 and 17.04.02 apply to this sick leave incentive option including, but not limited to eligibility and plan availability.

10.04 OVERTIME

10.04.01 56-HOUR WORK WEEK
Overtime is additional time worked in excess of an employee’s regular work shift. Overtime shall be paid at one and one-half (1 1/2) times the base rate of pay.

FLSA overtime is defined as all hours required by Management and actually worked by the employee, in excess of the maximum non-overtime hours allowed in the work period. (See Exhibit C for a listing of work periods and the maximum non-overtime hours for each work period.)
FLSA overtime shall be compensated in money at one and one-half (1½) times the employee’s regular rate. The regular rate shall be as defined in the FLSA.

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The City has the right to decide whether or not the Section 7 (k) exemption, as provided by the FLSA, shall apply. The City also has the right to select the work period, as defined by the FLSA.

Firefighters, Fire Engineers, Fire Captains, Fire Inspectors and Marine Safety Officers may choose, in lieu of overtime payment, to have overtime hours worked converted to a compensatory time bank at the rate of one and one-half time the hours worked. Employees’ compensatory time bank shall not exceed one-hundred-twenty (120) hours.

The use of compensatory time off shall be in accordance with Fire department policy 4-13 Vacation Selection Process for Shift Personnel (see attached Exhibit D).

Employees may receive payment for all accrued and unused compensatory time at the time of employment separation or promotion from a job classification represented by IAFF Local 1716.

10.04.02 40-HOUR WORK WEEK
Overtime shall be defined as all management authorized hours in a paid status in excess of forty (40) hours per week, which are contiguous with the employee’s regular work schedule, excluding voluntary training. Overtime shall be computed at the rate of one a one-half (1½) times the base hourly rate or may be converted to compensatory time off at the rate of one and one-half (1½) times the hours worked.

Employees covered by the Fair Labor Standards Act shall be entitled to FLSA overtime which is defined as all hours required by management and actually worked by the employee in excess of forty (40) hours in a work period as defined by the City. FLSA overtime is compensated in pay or compensatory time off at one and one-half (1½) times the employee’s regular rate of pay. The regular rate shall be defined in the FLSA.

A forty (40) hour employee with accrued compensatory time off shall be permitted to use such time within a reasonable period after making the request unless such time off will unduly disrupt the operations of the department. Compensatory time off shall not be allowed to accumulate beyond one hundred fifty (150) hours at any given time.

Employees may receive payment for all accrued and unused compensatory time at the time of employment separation or promotion from a job classification represented by IAFF Local 1716.

10.05 MARINE SAFETY OFFICER CALPERS
The City plans for a re-opener to negotiate regarding safety retirement during the term of the MOU after an actuarial analysis from Cal-PERS is received by the City.

10.06 CALL BACK
Call back is defined as any time an employee is directed to work and actually works for a period not contiguous with their regular shift. Employees so directed shall be compensated at their applicable overtime rate of pay for a minimum of two (2) hours (see Section 10.04 to determine applicable overtime rate). Up to one-half (½) hour will be paid for travel on emergency

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callbacks. With the exclusion of Marine Safety Officer, who will be compensated at their applicable overtime rate of pay for a minimum of two (2) hours (see Section 10.04 to determine applicable overtime rate). No compensation will be made for travel on emergency callbacks.

Notwithstanding the foregoing, any employee called back to work by reason of a shifttrade between employees within the bargaining unit shall not receive the premium set forth herein.

10.06.01 MARINE SAFETY OFFICER CALL-BACK
Call-back work is defined as work required by management of an employee who, following completion of the employee’s work day or work week and departure from the employee’s work site, is unexpectedly ordered to report back to duty to perform necessary work.

10.06.01.01 CALLBACK BY PHONE OR COMPUTER
If the Marine Safety Officer is able to respond by phone or computer and is not required to report to the worksite, then:

A. For the first response of the day, a minimum of thirty (30) minutes (0.5 hours) of overtime will be paid for actual overtime worked of less than thirty (30) minutes.

Thereafter, a minimum of fifteen (15) minutes (0.25 hours) of overtime will be paid for actual overtime worked of less than fifteen (15) minutes.

B. An additional minimum will not be paid if an employee is required to respond to additional call(s) and the time and duration of the response is within the previous minimum.

10.06.01.02 CALLBACK TO WORKSITE
A. All call-back hours shall be paid at the overtime rate. A minimum of two (2) hours of overtime compensation shall be paid for all call-back periods of less than two (2) hours.

B. Hours worked shall include reasonable travel time to work. Return travel time shall not be included within time worked.

C. If a Marine Safety Officer who was called back to work and has completed their assignment and left work is again called back to work, they will not receive another minimum if the time of return is within the previous call-back minimum.

D. Marine Safety Officers who are required to respond to the worksite will be provided mileage compensation, at the federal rate, for the use of their personal vehicles.

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10.07 HOLIDAYS

10.07.01 56-HOUR PER WEEK EMPLOYEES
This is additional compensation for employees who are normally required to work on an approved holiday because they work in positions that require scheduled staffing without regard to holidays as identified in Section 10.07.03, e. Employees shall accrue holiday pay up to a maximum of two-hundred and eighty-eight (288) hours per calendar year, at a rate of

11.08 hours per pay period. receive a bank of two-hundred (200) hours of holiday pay on the first day of the pay period that includes July 1 of each year. This amount will be pro- rated for new hires.

Pursuant to Fire Department policy 4-13 Vacation Selection Process for Shift Personnel (see attached Exhibit D), employees may use accrued holiday leave. Alternately, holidays shall be paid at a straight time ratethe employee’s base hourly rate. Any accrued and unused holiday pay shall be issued on the first pay period in June and again for all accrued and unused hours on the first pay period in December. If paid, a separate check shall be issued for 96 hours (less any hours used to date in the fiscal year) on the first pay date in December and again for the remaining balance of hours on the second pay date in June.

Upon separation, employees shall receive the value of their unused accrued holiday leave.

Accumulation of holidays shall not exceed two-hundred and eighty-eight (28800) hours.

10.07.02 40-HOUR PER WEEK EMPLOYEES
This is additional compensation for employees who are normally required to work on approved holiday because they work in positions that require scheduled staffing without regard to holidays as identified in Section 10.07.03. eEmployees shall receive a bank ofaccrue holiday pay up to a maximum of ninety-six (96) hours per calendar year, at a rate of 3.69 hours per pay period. of holiday pay on the first day of the pay period that includes July 1 of each year. During fiscal years when Christmas and New Year’s Day are on or between Tuesday through Saturday, employees shall be credited with ninety-six (96) hours. In fiscal years where Christmas and New Year’s Day are on a Sunday or Monday, employees shall be credited with eighty-eight (88) hours. This amount will be prorated for new hires.

Pursuant to City policy, employees may use accrued holiday leave. Alternately, holidays shall be paid at the employees base hourly rate. Any accrued and unused holiday pay shall be issued on the first pay period in June and again for all accrued and unused hours on the first pay period in December. if paid, a separate check shall be issued for up to 40 hours in years we do not have the Christmas Eve or New Year’s Eve half day holidays, or 44 hours in the years with the half-day holidays (less any hours used to-date in the fiscal year) on the first pay date in December and again for the remaining balance of hours on the second pay date in June.

Upon separation, employees shall receive the value of their unused accrued holiday leave.

Accumulation of holidays shall not exceed ninety-six (96) hours.

In addition, 40-hour per week employees shall accrue up to twenty-four (24) hours of floating

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holiday per fiscal year. Floating Holiday accrual will be on a monthly basis. Full-time employees shall accrue floating holiday at the rate of two (2) hours per month. Part-time employees shall accrue floating holiday on a pro-rated basis, given the ratio of their budgeted work schedule to full-time (e.g., all employees working in a 20 hour/week position shall receive one (1) hour of floating holiday each month).

Floating holidays may only be taken with prior approval. Upon separation, employees shall receive the value of their unused accrued floating holiday.

Accumulation of floating holidays shall not exceed twenty-four (24) hours.

10.07.03 MARINE SAFETY OFFICER HOLIDAYS
Part-time employees shall receive the following holiday benefits on a prorated basis, given the ratio of their budgeted work schedule to full time.

Marine Safety Officers will accrue paid holiday time the pay period before the pay period with the holiday. The accrual will be in the amount listed for the holidays listed in Section

10.07.03.01 (Fixed Holidays) of this MOU. Employees must be in paid status for at least fifty percent (50%) of the pay period to accrue paid holiday time.

Marine Safety Officers are required to use holiday leave on holidays they do not work, even if they are on leave or are sick. The use of vacation, compensatory time, excess holiday, or other leave time on holidays is only allowed to make up the difference between the hours of holiday granted and the amount of hours the employee is scheduled to work.

Marine Safety Officers are not allowed to use unpaid closure time on holidays during the City’s holiday closure.

10.07.03.01 FIXED HOLIDAYS
Employees within the unit shall have the following specific holidays with pay:

Eight (8) 8 Hour Holidays
Twelve (12) 24 Hour Holidays for 56-Hour per Week Employees Twelve (12) 8 Hour Holidays for 40-Hour per Week Employees  New Year’s Day
 Martin Luther King’s Birthday
 Cesar Chavez
 Presidents’ Day
 Memorial Day
 Juneteenth
 Independence Day
 Labor Day
 Veterans’ Day
 Thanksgiving Day
 Friday after Thanksgiving
 Christmas Day

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Four (4) 4 Hour Holidays
The last four (4) hours of the work shift are Holiday hours for Christmas Eve (if Christmas is on a Tuesday–Saturday)
The last four (4) hours of the work shift are Holiday hours for New Year’s Eve (if New Year’s Day is on a Tuesday–Saturday)
Except as provided for on Christmas Eve and New Year’s Eve, when a holiday falls on Sunday, the following Monday shall be observed. When a holiday falls on Saturday, the proceeding Friday shall be observed.

10.08 WORKING OUT OF CLASSIFICATION
The term “working out of classification” is defined as a management-authorized assignment on a temporary basis of an employee in a lower classification to a b u d g e t e d higher classification. Pay for working “out of classification” shall be as follows:

1. Employees so assigned will receive acting pay beginning the first day or shift of the assignment.

2. Acting Battalion Chief, Acting Fire Engineer, and Acting Captain shall be made for a minimum of six hours.

3. Acting Battalion Chief, Acting Fire Engineer, and Acting Captain, shall at a minimum, be paid a rate equal to a formal promotional assignment or 6% above the base rate.

In accordance with the Public Employees’ Pension Reform Act (PEPRA), working out of classification pay is not pensionable compensation for employees who are “New Members” of CalPERS, as defined by California Government Code Section 7522.04(f).

10.09 SPECIAL PROJECT PAY
A special project is a specific and unique assignment which exceeds the normally assigned duties and responsibilities of the employee’s job classification. Special projects typically require specialized knowledge, skills, education, training, abilities and/or responsibilities outside the scope of those normally required of the respective job classification.

Special projects may be employee initiated, or developed by the department. When appropriate, the department will post available special project assignments. All qualified employees may request an available special project. The Fire Chief or their designee shall select the most qualified and/or appropriate candidate from amongst those requesting the assignment.

Employees proposing a particular special project may be given preferential consideration during the selection process for that respective special project.

The Fire Chief may assign up to ten (10) employees to special projects. Such assignments shall be made in writing and shall specifically state the expected outcome. The Fire Chief and the assigned employee shall discuss the project and mutually decide progress milestones and objectives. If mutual agreement cannot be reached, then the progress milestones and objectives shall be determined by the Fire Chief. Special projects may be terminated at the discretion of the Fire Chief.

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An employee, so assigned by the Chief, shall receive 2.5% of their base pay while actually working on such project.

Special project pay does not affect, nor is it included in sick and vacation or other leaves of absence. These assignments will be included in PERS computations.

A listing of all current special projects and the respective employee(s) assigned each project, shall be maintained in the Fire Administration office. Said listing shall be made available to the Union and any employee upon request.

10.10 SPECIAL DETAIL
Special detail is defined as an assignment in which the City is reimbursed by an event’s sponsor, through the Finance Department, for fire services. Firefighters, Fire Engineers, Fire Captains, Fire Inspectors and Marine Safety Officers assigned to cover special detail will be paid a minimum of four (4) hours overtime at one and one-half (1½) times their hourly rate.

10.11 BILINGUAL PAY
The City shall provide payment of five percent (5%) of base salary when the City certifies an employee as qualified and the position requires the use of bilingual language skills with the exception of the Marine Safety Officer who will receive .30/hour. This provision does not apply to the City translator.

10.12 EDUCATION INCENTIVE
Employees will be eligible for one of the following education incentives when the listed requirements have been met for that level and a request for the incentive has been sent to the Fire Chief for review and approval:

I. Two percent (2%) of base salary (one of the following):
a. AA/AS Degree
b. Sixty (60) units of college credit and actively pursuing job related college work c. State Fire Marshal’s Company Officer Certification or Fire Officer Certification d. Successful completion of the following courses:
i. Company Officer 2a: Human Resource Management
ii. Company Officer 2b: General Administrative Functions iii. Company Officer 2c: Fire Inspections and Investigations iv. Company Officer 2d: All Risk Command Operations
v. Company Officer 2e: Wildland Incident Operations
vi. Instructor I: Instructor Methodology
vii. Instructor II: Instructor Development
viii. Instructor III: Instructor Program Management
ix. S-290: Intermediate Fire Behavior (classroom version) x. S-231: Engine Boss
II. Four percent (4%) of base salary (one of the following):
a. BA/BS Degree

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b. State Fire Marshal’s Chief Fire Officer Certification or Chief Officer Certification c. Successful completion of the following courses:
i. Chief Fire Officer 3a: Human Resource Management
ii. Chief Fire Officer 3b: Budget & Fiscal Responsibilities iii. Chief Fire Officer 3c: General Administration Functions iv. Chief Fire Officer 3d: Emergency Service Delivery Responsibilities v. ICS-300: Intermediate ICS for Expanding Incidents (classroom version) vi. S-404: Safety Officer
vii. S-330: Strike Team Leader
viii. S-234: Ignition Operations
ix. S-270: Basic Air Operations
x. L-380: Fireline Leadership
xi. L-336: Tactical Decision Making in Wildland Firefighting Course equivalencies for required courses are acceptable from recognized training organizations like, but not limited to, State Fire Marshal, CalFire, National Fire Academy, Federal Emergency Management Agency, Emergency Management Institute, US Forest Service, California Specialized Training Institute, National Wildfire Coordinating Group, and the International Association of Firefighters.

If the above listed courses are no longer offered, an equivalent course will be substituted upon mutual agreement of the Fire Chief and Local 1716 President.

10.13 LONGEVITY
Upon completion of six (6) years of continuous regular service, employees shall receive a two-and-one-half percent (2½%) longevity pay increase.

Upon completion of ten (10) years of continuous regular service, employees shall receive an additional two percent (2%) longevity pay increase for a total of four-and-one-half percent (4.5%).

Upon completion of fifteen (15) years of continuous regular service, employees shall receive an additional two percent (2%) longevity pay increase for a total of six-and-one-half percent (6.5%).

Upon completion of seventeen (17) years of continuous regular service, employees shall receive an additional two percent (2%) longevity pay increase for a total of eight-and-onehalf percent (8.5%).

Upon completion of twenty (20) years of continuous regular service, employees shall receive an additional two percent (2%) longevity pay increase for a total of ten-and-onehalf percent (10.5%).

Upon completion of twenty-two (22) years of continuous regular service, employees shall receive an additional two percent (2%) longevity pay increase for total of twelve-and-onehalf percent (12.5%) Effective July 3, 2027, longevity pay will be based on the employee’s years of service from the date of hire. Longevity pay will be part of the employee's base pay.

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Upon completion of six (6) years of continuous regular service, employees shall receive a two-and-one-half percent (2.5%) longevity pay increase.

Upon completion of ten (10) years of continuous regular service, employees shall receive an additional four percent (4%) longevity pay increase for a total of six-and-one-half percent (6.5%).

Upon completion of fifteen (15) years of continuous regular service, employees shall receive an additional two percent (2%) longevity pay increase for a total of eight-and-onehalf percent (8.5%).

Upon completion of twenty (20) years of continuous regular service, employees shall receive an additional four percent (4%) longevity pay increase for a total of twelve-andone-half percent (12.5%).

10.14 PARAMEDIC PROGRAM
A. Each employee who is licensed by the State of California, accredited by the County of Santa Cruz as a paramedic, and assigned to front-line or support duty shall be eligible for paramedic pay with the exception of the Marine Safety Officer.

B. Paramedic pay shall be an amount equal to 10% of top step Firefighter salary.

C. The department will make every effort to ensure continuing education will be provided on duty. However, subject to approval of the Fire Chief, continuing education may be provided off duty, compensated by approved overtime or compensatory time off.

D. Support medic pay shall be an amount equal to seven percent (7%) of base salary.

10.15 EMERGENCY MEDICAL TECHNICIAN
Each employee who is certified in the County of Santa Cruz as an Emergency Medical Technician-D, with the exception of the Marine Safety Officer, shall be compensated an additional 3% of employee’s base salary. (EMT-D pay will not be payable to those employees receiving paramedic pay.)

10.16 PARAMEDIC PREMIUM PAY FOR MARINE SAFETY ADMINISTRATIVE CAPTAIN Paramedic premium pay for the Marine Safety Administrative Fire Captain will be ten percent (10%) of the top-step pay of the firefighter position.

10.17 RESCUE SWIMMER ASSIGNMENT AND COMPENSATION
The Rescue Swimmer program will be administered in accordance with Santa Cruz Fire Department policies and procedures.

Employees designated as Rescue Swimmers, with the exception of the Marine Safety Officer, in accordance with departmental policies and procedures will receive an incentive equal to five percent (5%) of their base salary.

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10.18 HAZ-MAT TECHNICIAN ASSIGNMENT AND COMPENSATION
Employees designated as haz-mat technicians in accordance with departmental policies and procedures, with the exception of the Marine Safety officer, will receive an incentive equal to five percent (5%) of their base salary.

10.19 ON-CALL FIRE INVESTIGATOR ASSIGNMENT AND COMPENSATION On-call Fire Investigator assignments will be made in accordance with Santa Cruz Fire Department Policy and Procedure Manual Article #2, #B2-4 (On-Call Fire Investigator Assignment).

Compensation for on-call Fire Investigator assignments is as follows:

A. For every weekday covered, a stipend equal to 1 ½ hours of “C” step Deputy Fire Marshal pay shall be provided.

B. For every weekend day covered (24 hour period) a stipend equal to 2 hours of “C” step Deputy Fire Marshal pay shall be provided.

C. For every City designated 8-hour holiday covered (24 hour period), a stipend equal to 4 hours of “C” step Deputy Fire Marshal pay shall be provided and an additional 4 hours will be credited to the employee’s accrued compensatory time balance.

D. For every City designated 4-hour holiday covered (24 hour period), a stipend equal to 2 hours of “C” step Deputy Fire Marshal pay shall be provided and an additional 2 hours will be credited to the employee’s accrued compensatory time balance.

E. When an on-call Fire Investigator is dispatched or activated, the pay rate will revert to 1 ½ the employee’s base pay rate as “emergency call back”.

SECTION 11.00 - SICK LEAVE

11.01 DEFINITION
The purpose of this section is to provide paid leave time to be used by employees in the event of a non-work related illness, injury, preventive healthcare, care of an existing health condition, as victims of domestic violence, sexual assault or stalking, or the medical necessity of others as specified below. Sick leave shall not be construed to be a privilege, which an employee may use at their discretion, but shall be allowed only in case of necessity herein set forth.

11.02 ACCRUAL

11.02.01 24-HOUR SHIFT PERSONNEL
All 24-hour shift personnel shall accrue sick leave at the rate of 162 hours for each full month of continuous regular service in which the employee has worked or has been in on authorized leave of absence with pay.

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11.02.02 40-HOUR PER WEEK PERSONNEL
All 40-hour per week personnel shall accrue such leave at the rate of 8 hours of each full month of continuous regular service in which the employee has worked or has been in authorized leave of absence with pay.

11.02.03 PAID STATUS
An employee must be on paid status at least 50% of the working hours of a pay period to earn sick leave for that period.

11.03 LIMITATIONS
A. To receive compensation while absent on sick leave, the employee shall notify their immediate supervisor in the manner provided in the departmental rules and regulations.

B. Where absence is for more than two 24-hour shifts, the employee shall furnish proof of illness as may be required by the Fire Chief.

For 40-hour week employees, the Fire Chief may require an employee to submit verification of an illness or injury from a licensed medical practitioner prior to any use of sick leave being authorized.

In cases of chronic absenteeism or medical work restrictions, the Director of Human Resources may have an employee examined by a City-selected physician. The City shall pay the cost of any such medical exam.

C. Up to 72 hours for 24-hour shift personnel and 48 hours for 40-hour week personnel of accrued sick leave per fiscal year may be used when the employee’s personal attendance is required to care for an immediate family member who is ill or injured, or for preventive care, care of an existing health condition, or if they are a victim of domestic violence, sexual assault or stalking. Immediate family is defined as parent, spouse, child, father, mother, brother, sister, registered principal domestic partner, step-father, step-mother, grandparent, grandchild, or close relation residing in the employee’s household. This seventy-two (72) or forty-eight (48) hour limitation may be extended by the City Manager with good cause.

11.04 SICK LEAVE INCENTIVE

11.04.01 56-HOUR PER WEEK EMPLOYEES
56-hour per week employees who have accumulated sick leave above 900 hours as of December 31 of each calendar year, will bank all hours in excess of 900.be able to choose among the following options:

1. To receive a cash pay-off of all hours in excess of 900 at the rate of 33% of their current rate of pay.

2. To “bank” all hours in excess of 900. Banked hours may not later be converted to cash, and will be used as sick leave only when all other sick leave is exhausted and/or converted to service credit upon

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adoption of the credit for unused sick leave option.

11.04.02 40-HOUR PER WEEK EMPLOYEES
40-hour per week employees who, as of December 31 of each year, have accumulated more than 400 hours of sick leave will “bank” be asked to choose among the following options:

1. To receive a cash pay-off of all hours in excess of 400 at the rate of 33% of their current rate of pay.

2. To “bank” all hours in excess of 400. Banked hours may not later be converted to cash and will be used as sick leave only when all other sick leave is exhausted and/or converted to service credit upon adoption of the credit for unused sick leave option.

Employees who have an excess of 400 hours of unbanked sick leave at the time of separation from the City will be paid-off for these excess hours at the rate of 33% of the employee’s current rate of pay.

SECTION 12.00 - VACATION
Vacation accrual will be on a monthly basis beginning at date of hire. Accumulated vacation time may not exceed twice the annual rate of accrual unless prior written authorization for a specified amount is received from the City Manager or Director of Human Resources. Upon authorization by a Battalion Chief, a probationary employee may use accrued vacation leave.

The Vacation Selection Process for Shift Personnel will follow Article #4-13, revised September 21, 2015, of the Santa Cruz Fire Department Policy and Procedure Manual (see attached Exhibit D).

12.01 ACCRUAL
An employee must be in paid status at least 50% of the working hours of a pay period to earn vacation for that period. Annual vacation accrual shall be based on continuous regular service, as follows:

12.01.01 40-HOUR/WEEK SCHEDULES
Up to 5 years (inclusive): 80 hours for each year of continuous regular service 6 to 10 years (inclusive): 120 hours for each year of continuous regular service 11 or more years: 120 hours for each year of continuous regular service, plus 8 hours for each additional year of continuous regular service after ten (10) years to a maximum of 160 hours per year.

12.01.02 56-HOURS/WEEK SCHEDULES
Up to 5 years (inclusive): 12 hours for each month of continuous regular service 6 to 10 years (inclusive): 18 hours for each month of continuous regular service 11 or more years: 18 hours for each month of continuous regular service, plus one hour for each additional year of continuous regular service after ten (10) years to a maximum of twenty-four (24) hours per month.

12.02 ILLNESS DURING VACATION

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An employee who becomes ill or is hospitalized while on vacation and provides a written statement from a licensed medical practitioner to this effect, shall have the period of illness charged against sick leave and not vacation leave.

12.03 UNION LEAVE BANK

1. Transfer of Accrued Vacation to Union Leave Bank
In the first full pay period of January of each year, each active bargaining unit employee will contribute to the Union Leave Bank by donating six (6) hours of their accrued vacation leave (four (4) hours for forty (40) hour per week employees).

The contribution will be deducted from each employee’s accrued vacation leave, and the total dollar value of those hours, using the employee’s actual hourly rate, will be credited to the Union Leave Bank.

Unless an employee has at least six (6) vacation hours available (four (4) hours for forty (40) hour per week employees), no deduction will occur nor will a deduction occur at any time prior to the next calendar year leave bank transfer. In addition, employees hired during the year will have no deduction until the following calendar year’s leave bank transfer. Employees separating employment during the year will receive no credit for or return of the hours contributed to the Union Leave Bank.

The number of hours deducted from each employee’s accrued vacation leave may be adjusted from year to year as necessary with written notification from the Union to the City.

2. Carry Over of U nused F unds
If there are any unused amounts in the Fire Union Leave Bank at the end of the fiscal year, these amounts will carry over to the following year.

3. Usage of the Union Leave Bank
When a bargaining unit employee has received the appropriate approval to be absent from their scheduled shift(s) to attend conferences related to a union-related function, payment of the employee(s) wages covering for the shift(s) will be made from the Union Leave Bank. The employee will be paid at an FLSA adjusted overtime rate. No ‘acting pay’ will be added to the union coverage overtime rate. There will be no compensatory time bank established for this purpose.

Coverage time will be paid time. The employee absent from work on union business shall receive pay for their regularly scheduled shifts.

4. Authorization for use of the Union Leave Bank
An employee seeking to be absent from work pursuant to this section must receive written approval from a union officer and present the request seven (7) days in advance to the Deputy Chief who shall confirm that there are sufficient funds in the Union Leave Bank to cover the absence. Approval for use of the leave will be denied if there are insufficient funds in the Leave Bank to pay for the coverage of shifts during the proposed absence.

5. Shift Coverage
The Battalion Chief shall ensure a replacement is secured to cover the shifts resulting from an approved Union Leave absence, pursuant to the current

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practice for obtaining shift replacements. In the event Union Leave is sought at a time when there are inadequate funds in the leave bank to cover the leave, employees may seek a shift-trade in accordance with current policy and practice, or the Union may deposit an amount sufficient to cover the inadequacy into the Leave Bank account.

6. Time Card Coding
Employees absent on Union Leave and employees covering for employees absent on Union Leave shall code their time cards accordingly. The employee absent from work shall code their time card using a pay code edit, 166 – Union Business and number of duration hours. He/she must delete the pre-populated schedule for the expected duration of the union business. The employees covering for employees absent on union leave shall transfer their time to a “021 - Overtime Union Coverage” work rule.

7. Quarterly Reports
The Fire Department shall provide a report to the Union on a quarterly basis indicating the amounts used during the calendar year as well as the remaining balance of the Union Leave Bank.

8. Disclaimer of Liability
The City assumes no responsibility for how the leave time is used. Time spent on Union Leave is not considered time worked for purposes of worker’s compensation.

9. Overtime
Time spent on Union Leave is not counted as time worked for purposes of calculating overtime. Time spent by employees covering for those on Union Leave is counted as time worked for purposes of overtime.
1 0 . No Waiver of Rights
Nothing in this section shall supersede the Fire Chief’s duty to maintain management control over shifts to ensure that the daily operation of the Fire Department and emergency situations are adequately covered.

SECTION 13.00 - BEREAVEMENT LEAVE
The purpose of this section is to provide paid leave for employees when they are bereaved at the death of a family member and this loss has had a temporary effect on the employee’s ability to continue daily work performance.

A leave of absence with pay of up to twenty-four (24) hours per incident is available to an employee in the event of a death in the employee’s immediate family which shall, for the purpose of this article, include spouse, parent, son, daughter, grandparent, sibling, mother or father-in-law, registered Principal Domestic Partner, grandchild of the employee or spouse, son-in-law, daughter- in-law, grandparent-inlaw, brother-in-law, sister-in-law, or a close relation residing in the employee’s household. In rare cases when the employee and the deceased have no legal relationship other than a foster or stepparent the Human Resources Director or City Manager has the discretion to approve that leave upon application.

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Employees who have been employed for at least thirty (30) days are entitled to bereavement leave in the event of the death of an employee’s spouse, domestic partner, child (including stepchild & foster care child), parent, grandparent, grandchild, sibling, aunt, uncle, first cousin, and the spouse/domestic partner’s child, parent, grandparent, grandchild, brother, sister, sibling or a close relation residing in the employee’s household.

In rare cases when the employee and the deceased have no legal relationship other than a foster or step-parent the Human Resources Director or their designee has the discretion to approve that leave upon application.
56-Hour Work Week Employees
56-hour employees shall receive up to forty-eight (48) hours of paid bereavement leave per incident. 40-Hour Work Week Employees
40-hour employees shall receive up to forty (40) hours of paid bereavement leave per incident. 56-Hour and 40-Hour Employees
The use of paid bereavement leave shall not be charged against any of the employees leave banks. If the employee wishes to take additional days off in addition to the paid bereavement leave provided, as outlined above, to attend to the loss of a family member, the employee may take unpaid leave or use vacation, sick leave or compensatory time off that is otherwise available to the employee.

Days of bereavement leave used need not be consecutive but must be completed within ninety (90) days of the date of the death of the employee’s family member.

As soon as practicable, an employee who needs to use bereavement leave shall notify the Human Resources Director or their designee in the format defined by the Human Resources Department, such as electronic transmittal.

The HR Director or their designee may, within thirty days of the first day of the leave, require that an employee provide documentation of the death of the family member. Documentation includes but is not limited to a death certificate, a published obituary, or written verification of death, burial, or memorial service from a mortuary, funeral home, burial society, crematorium, religious institution, or governmental agency.

13.01 MARINE SAFETY OFFICER BEREAVEMENT LEAVE
A leave of absence with pay of up to forty (40) hours per incident may be granted a Marine Safety Officer by the department head in the event of a death in the employee’s family which shall, for the purpose of this article, include spouse, parent, child, grandparent,sibling, parentin-law, registered principal domestic partner, grandchild of the employee or spouse, siblingin-law, child-in-law, grandparent-in-law, or a close relation residing in the employee’s household. In rare cases when the individual has no other legal relationship other than a foster or step parent, the HR Director or City Manager has the discretion to approve that leave upon application.

An additional forty (40) hours of leave chargeable to accrued sick leave, may be taken by an employee who needs additional time off in connection with a death in the family (as defined

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in this article).

SECTION 14.00 - LEAVES OF ABSENCE

14.01 UNPAID LEAVES OF ABSENCE

14.01.01 MEDICAL OR PERSONAL LEAVE
A leave of absence without pay may be granted to an employee in a case of extended illness or disability, personal emergency or other situation where such absence would not be contrary to the best interests of the City. Approval of all such leaves of absence is at the sole discretion of management. Such unpaid leave will only be granted after an employee has depleted all appropriate paid leaves. The department head may grant a leave of absence of up to thirty (30) consecutive calendar days; additional leave may only be granted by the City Manager and may not exceed a total of twelve months. No vacation, holidays, sick leave, or any other paid benefit shall be accrued or earned during such leave. All requests for unpaid leaves of absence must be made in writing and include specific begin and end dates for the leave. Employees on Military Leave pursuant to Section 14.02.02 are not subject to the leave depletion requirement.

14.01.02 PREGNANCY DISABILITY LEAVE
An employee may take a leave of absence up to four (4) months in length for the purpose of pregnancy disability leave. The City may request a licensed medical practitioner’s opinion regarding any work restrictions that may exist prior to or after delivery.

Requests for pregnancy disability leave must be made in writing to the Fire Chief at least thirty (30) days in advance of the anticipated starting date. Such requests must include specific begin and end dates for the leave. Starting dates should be as accurate as possible, barring any unforeseen medical issues related to the pregnancy or earlier or later birth than expected. Any requests for extension of pregnancy disability leave must be made in writing to the Fire Chief at least ten (10) calendar days prior to the scheduled end of the existing leave.

The employee may elect to use any appropriate paid leave either before or after an approved pregnancy disability leave, within the use limitations of those leave provisions. No combination of pregnancy disability leave, family leave, sick leave or vacation may exceed one year total or seven (7) months post-partum.

Any additional post-partum leave, not to exceed one (1) year total, may be approved by the City ManagerHuman Resources Director or their designee after consideration of the nature of the request and the operational needs of the department.

Upon return to work, the employee shall be assigned to the same classification and like assignment whenever possible and in accordance with applicable leave laws.

Upon conclusion of an approved Pregnancy Disability Leave, the employee shall be reinstated to the “same” position held prior to the leave, or to a “comparable” position with equivalent pay benefits, and duties, in accordance with State and Federal laws.

14.01.03 FAMILY LEAVE

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In accordance with the Federal Family and Medical Leave Act and the California Family Rights Act, the City will grant job protected unpaid family and medical leave to eligible employees for up to twelve (12) weeks, (continuous or cumulative). Effective January 1, 2016, the City will begin using a “rolling” twelve (12) month period measured backward to establish the 12-month period. Family leave may be taken for any one or more of the following reasons:

A. The birth of a child and in order to care for such child or the placement of a child with the employee for adoption or foster care including the child of a domestic partner (leave for this reason must be taken within the twelve (12) month period following the child’s birth or placement with the employee). In any case in which both parents are employed by the City of Santa Cruz and are entitled to leave, the aggregate number of workweeks of leave to which both may be entitled is limited to twenty-four (24) workweeks during any twelve (12) month period if leave is taken for the birth or placement for adoption or foster care of the employees’ child or child of the employee’s domestic partner.

B. In order to care for a spouse, domestic partner, child, parent, parent-in-law, grandparent, grandchild or sibling of the employee who has a serious health condition.

C. The employee's own serious health condition that makes the employee unable to perform any one or more of the essential functions of their position.

D. Military family leave, which includes:

1. “Qualifying Exigency Leave” may be taken if the employee’s spouse, son, daughter, or parent is on covered active duty or called to covered active duty status in the Regular Armed Forces during deployment to a foreign country or in the National Guard and Reserves during deployment to a foreign country under a call or order in support of a contingency operation; qualifying exigencies may include short-notice deployment, attending certain military events, arranging for alternative childcare and school activities, addressing certain financial and legal arrangements, attending certain counseling sessions, rest and recuperations, and attending post-deployment reintegration briefings.

2. “Military Caregiver Leave” of up to twenty-six (26) workweeks in a twelve (12) month period may be taken by an eligible employee who is the spouse, son, daughter, parent, or next of kin of a “covered servicemember”, in order to care for the covered servicemember with a serious illness or injury incurred or aggravated in the line of duty while on active military duty.
a. In any case in which both parents are employed by the City of Santa Cruz and are entitled to leave to care for a covered servicemember, the aggregate number of workweeks of leave to which both may be entitled is limited to twenty-six (26) workweeks during any twelve (12) month period.

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Conditions covering the leave shall include the following:

A. Eligible employee means having been employed by the City for twelve (12) months and has worked for at least 1,250 hours during the twelve-month period immediately preceding the commencement of the leave.

B. Medical verification is required for employee or ill family member for medical leave period.

C. Employees are required to give at least thirty (30) days written notice in the event of a foreseeable leave. In unexpected or unforeseeable situations, an employee should provide as much written notice as is practicable.

D. Employees are required to use accrued vacation as a part of the family leave period.

Use of sick leave is not required, but may be used pursuant to the applicable provisions of the Memorandum of Understanding.

E. Pregnancy disability is not covered under this section and is covered by the California Fair Employment and Housing Act which allows up to four (4) months of leave depending on the actual disability (see Section 14.01.02).

F. Employees retain “employee” status while on family care leave. The leave does not constitute a break in service for purpose of longevity, and/or seniority. Upon return to work, employee will be reinstated to an equivalent position (same classification) with equivalent pay and benefits.

G. Any request for additional leave may be made pursuant to Section 14.01. Requests for leave time using multiple time off provisions may not exceed the total amount allowed pursuant to Section 14.01.

H. Benefit premiums shall be made in accordance with the Federal Family and Medical Leave Act and the California Family Rights Act. Under the current law, the City will continue to maintain coverage under the same conditions as coverage would have been provided if the employee had been continuously employed during the leave period.

I. Any other conditions or interpretations of the leave shall be based upon the Federal Family and Medical Leave Act and the California Family Rights Act.

14.01.04 CONTINUATION OF INSURANCE BENEFITS DURING UNPAID LEAVES OF ABSENCE City-sponsored insurance benefits may be continued during unpaid leaves of absence under the following conditions:

A. Personal Leave
The City shall continue to pay benefit premiums during a personal leave of less than thirty (30) calendar days. For leaves of more than thirty (30) calendar days, employees may continue premium payments at their own cost, in accordance with appropriate PERS medical plan provisions.

B. Medical Leave
The City shall continue to pay benefit premiums during the entire length of a medical

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leave of absence.

C. Family Leave
Benefit premiums shall be made in accordance with the Federal Family and Medical Leave Act and the California Family Rights Act. Under current law, the City will continue to maintain coverage under the same conditions as coverage would have been provided if the employee had been continuously employed during the leave period.

14.02 PAID LEAVES OF ABSENCE

14.02.01 PAID BIRTH/ADOPTIVE LEAVE
An employee is entitled to forty-eight (48) hours leave with pay at or about the time of the birth of the employee’s child or at the time of adopting a child. The paid leave shall be within two (2) months of the birth or adoption. This leave will be considered a part of the time allotted to family leave as authorized in Section 14.01.03.

14.02.02 MILITARY LEAVE
An employee who is a member of the National Guard or any reserve component of the armed services of the U.S. shall be granted up to thirty (30) days per year of paid leave for any active duty scheduled during the employee’s regular work hours (or 10 shifts per year for 24 hour personnel). The employee must give their supervisor forty-eight (48) hours advance notification of the need for such leave and must present a copy of the “notice” for such duty.

All other military leaves shall be granted pursuant to relevant state and federal statutes.

Employees who exhaust the paid leave benefits described above may take unpaid leave pursuant to Section 14.01.01and are not required to use vacation or other similar leave.

SECTION 15.00 - UNIFORMS, LINENS, AND PERSONAL PROPERTY

15.01 UNIFORMS
A. The City and Union agree unit employees will comply with departmental standards with regard to appearance and cleanliness. To this end, the City agrees to pay the cost of cleaning department authorized uniforms. For this purpose, the City will establish an account at a dry cleaning establishment located within the city of Santa Cruz. For its part, the Union agrees its members will a) deliver and retrieve uniforms from the dry cleaning establishment, and b) do so during non-working hours. However, under exceptional circumstances, subject to the approval of the Fire Chief or their representative, uniforms may be delivered or retrieved during working hours.

The City and Union believe it is counterproductive at this time to establish minimum or maximum number of cleanings authorized by this section. It is understood, however, the Fire Chief and/or Union will monitor this program and advise the other party if any problems materialize.

B. The City agrees to replace uniforms on an as-needed basis, as determined by the Fire Chief. It shall be the responsibility of each unit employee to arrange for purchasing, fitting, pick up, delivery, return, repair and control of uniform items.

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C. The parties agree that, for PERS reporting purposes, the value of the cleaning service is four hundred and sixty-eight dollars ($468.00) per year. Employees shall pay the employee PERS cost of the value of cleaning service. Such payment shall be made through a payroll deduction out of their paycheck each pay period. The amount of the deduction shall be determined by multiplying the employee’s PERS contribution rate by eighteen dollars ($18.00).

15.02 LINENS
The City agrees to provide clean sheets, pillow cases, and towels for use by unit employees every two shifts. The City agrees to retain a linen service to clean the aforementioned items.

15.03 PERSONAL PROPERTY
Employees will be reimbursed for the loss, repair or replacement of personal property damaged in the course of employment and performance of their assigned duties.

The option to repair or replace damaged items, and to determine whether replaced property will be returned to the employee, rests with the City.

The intent of this regulation is to permit reimbursement for the repair or replacement of such items as eyeglasses, hearing aids, dentures, watches or personal professional equipment if necessarily worn or carried by the employee in the course of their employment. Reimbursement shall be authorized only when the damage is caused by extraordinary circumstances, which arise out of employment, and not from normal hazards or ordinary wear and tear. This policy extends to both field and office personnel. A maximum of $75.00 per incident shall be paid for this purpose.

SECTION 16.00 - MISCELLANEOUS PROVISIONS

16.01 ADDITIONAL DUTIES
All Firefighters shall be expected to perform work as assigned by the Fire Chief or their designated representative in connection with or related to firefighting, its equipment, apparatus and attendant facilities; fire prevention duties; station housekeeping, maintenance and repair; and, such other duties which are reasonably related to the above.

16.02 MISCELLANEOUS EMPLOYMENT
No outside employment in conflict with firefighting duties or ordinances, Council resolutions or orders shall be allowed without the express permission of the Fire Chief or their designated representative. Notification of outside employment shall be made pursuant to Fire Department administrative directive.

16.03 PROMOTIONS
The City and the Union agree that it is desirable that a highly trained professional fire prevention, fire suppression and Marine Safety force should be developed and maintained. To that end, it is agreed that the Fire Chief or their designated representative shall assist personnel

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in the development and fulfillment of a training plan which helps them prepare for promotional positions as they become vacant.

16.04 LAYOFF POLICY & PROCEDURE
All Fire Department employees shall be subject to the layoff policy and procedure provided in this section.

16.04.01 LAYOFFS
The City reserves the right to reduce its workforce by layoff of employees for reasons of economy or changes in departmental operations. When one or more employees assigned to the same classification within a department are to be laid off, the order of layoff shall be as follows:

1. Casual, On-call

2. Temporary

3. Casual - Less-than-half-time

4. Probationary

5. Regular
The order of layoffs shall be governed by seniority in classification from the date of hire in the classified position.

16.04.02 BUMPING
Bumping is defined as a voluntary movement of an employee to be laid off from their current classification to a previously held lower classification or reclassified position held by an employee with less seniority. Bumping privileges may be exercised within the Fire Department. An employee with sufficient seniority to bump an employee in a lower classification shall bump the least senior person in that classification.

For bumping purposes, seniority shall be defined as time in the affected classification added to time in a directly related higher classification.

16.04.03 NOTIFICATION
Employees to be laid off shall be given not less than fifteen (15) working days written notice prior to the reduction in force. An employee wishing to bump to a lower classification shall provide written notice to the City within ten (10) days of receiving their layoff notice.

16.04.04 REINSTATEMENT
Should there be a vacancy in the classification from which an employee was laid off within thirty-six (36) months, the employee shall be eligible for reinstatement. It shall be the employee’s responsibility to notify the Human Resources Department of their current address.

Every effort shall be made to notify the affected individual of any reinstatement opportunity.

Reinstatement shall be in the reverse order of layoff.

16.05 CONSOLIDATION MERGER

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The City agrees that it will give advance notice and provide the opportunity for the Union to meet and confer on the impact of any consolidation/and or merger which involves unit employees.

This section shall not restrict the rights of the department to relocate units, realign districts or to alter organization objectives of the merged departments. The Union will be involved in discussions authorized by the involved agencies concerning the merger as it relates to this agreement.

16.06 TUITION REIMBURSEMENT
The City shall reimburse employees up to $350 per fiscal year for tuition and books upon successful completion of City-approved college or university courses.

To be eligible for reimbursement, employees must receive approval of the Fire Chief prior to attending classes and comply with applicable department and City regulations.

16.07 CAPTAIN/ENGINEER PROMOTIONAL EXAM
When a promotional eligible list (as defined in the Personnel Rules and Regulations) is used to fill a Captain’s or Engineer’s position and that promotional list includes employees represented by this agreement, the Director of Human Resources shall certify the top five (5) eligibles, in alphabetical order, if there be that number, on the relevant promotional list to the Fire Chief. If there be more than one vacancy in the same class, the Director of Human Resources shall certify one additional eligible for each additional vacancy, if there be candidates available on the eligible list.

SECTION 17.00 - BENEFITS

17.01 MEDICAL PLAN/FLEXIBLE BENEFITS
The City will provide medical insurance through the California Public Employees’ Retirement System (CalPERS). The City will contribute a monthly amount to CalPERS pursuant to Government Code Section 22892 of the Public Employees Medical and Hospital Care Act (PEMHCA). The City will provide a flexible benefits plan (“cafeteria plan”) to all eligible employees. If an employee elects to participate in a medical plan, the maximum monthly City contribution to the cafeteria plan is the cost of the Blue Shield Access+ HMO Plan (for the Bay Area/Sacramento region) less the following employee contribution amounts:

Employee Only: $96.00
Employee & One: $118.04
Family: $121.50
In no event will the maximum monthly City contribution exceed the premium for the plan in which the employee is enrolled. In no event will employees be credited with and receive cash back based on the plan chosen.

Each employee participating in a medical plan will make an additional $48.00 contribution per pay period towards the cost of health care benefits. This pre-tax contribution is made

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during pay periods where employee deductions for health care benefits are taken (24 pay periods).

17.01.01 MEDICAL WAIVER BENEFIT
Employees may elect to waive City medical coverage and receive a cash benefit. In order to receive the medical waiver benefit, the employee must provide proof to the City of other current medical coverage. Full-time employees who waive medical coverage are eligible to receive $200 per month; part-time employees shall receive a pro-rated amount, based upon their fulltime equivalency (FTE). The medical waiver amount may be applied toward the purchase of any pre-tax or post-tax optional benefits, or paid as a taxable cash benefit.

Employees receiving the medical waiver benefit must notify the Human Resources Department if they cease to be covered by any other medical plan, thereby making them ineligible for the medical waiver benefit.

17.01.02 OPTIONAL BENEFITS
Through the cafeteria plan, employees may also enroll in the following optional benefits and elect to pay premiums on a pre-tax basis:

1. Medical reimbursement account (MRA)

2. Dependent care assistance plan (DCAP)

3. Cancer and Critical Illness Protection Insurance
Employees may also enroll in the following optional benefits and elect to pay premiums on a post-tax basis:

1. Additional life insurance

2. Accident protection insurance

3. Long Term Care Insurance

17.02 DENTAL PLAN
The City shall provide a dental plan for employees and their eligible dependents at no premium cost to employees and with the following minimum benefit levels.

In-PPO Network Out-of-PPO Network (fees
charged are usually higher)
Annual Deductible $25 per person/$75 per
family per calendar year
$25 per person/$75 per
family per calendar year
Annual Benefit
Maximum
$1,500 per person $1,500 per person
Preventive 100% 80% of contract allowance
Basic Restoration
(Fillings, root canals)
80% 80% of contract allowance
Major Restoration
(crowns)
50% 50% of contract
allowance

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Orthodontia 50% up to $2,000 lifetime
maximum per person, up to
age 23
50% of contract allowance,
up to $2,000 lifetime
maximum per person, up to
age 23

17.03 VISION INSURANCE
The City shall provide a vision plan for employees and their eligible dependents at no premium cost to employees and with the following minimum benefit levels.

Co-pays $15.00 (does not apply to contacts)
Exam: 100% every 12 months
Prescription Lenses 100% every 12 months
Frames 100% up to $115 plus 20% off any out-of- pocket
costs ($65 at Walmart/Costco), every 24 months
Contacts 100% (in lieu of glasses) up to $100, every
12 months

17.04 RETIRED HEALTH PROGRAM

17.04.01 RETIREE MEDICAL/CALPERS MEDICAL PLAN
Covered employees who retire under the provisions of the City’s contract with CalPERS, are currently eligible to continue CalPERS medical coverage. The City will continue a monthly contribution to CalPERS pursuant to Government Code Section 22892 of the Public Employees Medical and Hospital Care Act (PEMHCA), adjusted annually by CalPERS by the medical care component of the Consumer Price Index-Urban.

17.04.02 RETIREE MEDICAL INCENTIVE
In addition to the PEMHCA minimum monthly contribution that the City contributes for all employees in a CalPERS medical plan, employees currently on the City’s retiree medical plan and future covered employees who receive a retirement from CalPERS and have at least five (5) years of continued service with the City and are at least fifty (50) years of age will receive a retiree medical benefit in the amount of $112.04, per month. This benefit will continue as long as the employee continues CalPERS medical coverage through the City of Santa Cruz and until such time as the retiree is eligible for Medicare or other Federal or State health programs, solely on account of age.

Marine Safety Officers currently on the City’s retiree medical plan and future covered employees who receive a retirement from CalPERS and have at least five (5) years of continued service with the City and are at least fifty-five (55) years of age will receive a retiree medical benefit in the amount of one-hundred dollars ($100), per month. This benefit will continue as long as the employee continues CalPERS medical coverage through the City of Santa Cruz and until such time as the retiree is eligible for Medicare or other Federal or State health programs, solely on account of age.

Employees who retire with more than twenty (20) years of City service will have their medical

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incentive increased to 75% of the cost of the employee-only coverage of the highest CalPERS HMO plan from only among those plans available in Santa Cruz County at the time of ratification of this agreement (less the contribution listed in 17.04.01 (Retiree Medical/CalPERS Medical Plan).

17.04.03 DISABILITY RETIREMENT BEFORE ELIGIBLE AGE FOR SERVICE RETIREMENT With the exclusion of the Marine Safety Officer, upon disability retirement before attaining the minimum age to be eligible for service retirement, an employee shall be reimbursed for unused sick leave through the provision of the City’s retired health care plan for the employee only to the following limits, whichever occurs first: (1) up to the current value of the employee’s sick leave accrual; or (2) until such time as the employee obtains primary health care coverage under another plan; or (3) until the employee is eligible for Federal or State medical programs.

Once any of these limits are reached, the employee is no longer eligible for coverage under this plan.

The retiree shall notify the City in writing at such time as he/she is receiving primary coverage under another plan.

Two years after the date of retirement, if a retiree is still covered under the City’s plan, he/she must provide the City with an affidavit stating that he/she is not receiving primary coverage under another plan. If the retiree fails to provide such an affidavit, the City has the right to cancel coverage with 30 days written notice.

To be eligible for this Retired Health Care Plan, the employee must have an accrued sick leave balance of 144 hours as of the effective date of disability retirement.

If an employee is medically declared to be totally disabled, the City shall provide the retired health plan to that employee until he/she is eligible for Federal or State medical programs, regardless of the employee’s sick leave balance.

In all cases, retired employees may purchase coverage for their dependents under this plan as long as they, themselves, remain eligible and are insured under the plan.

17.05 LIFE INSURANCE
The City shall contribute the full cost toward the City-sponsored $30,000.00 basic term life insurance program.

17.06 LONG-TERM DISABILITY
The City shall contribute 80% of the premium cost of the Union-sponsored long-term disability program, provided said program offered through California Association of Professional Firefighters Plan A, requires a sixty-day elimination period prior to receipt of benefits by employee. These contributions shall be reported as income to the employee.

The City shall continue its 80% contribution for the term of this agreement; except that it shall not be obligated to pay in excess of $16.00 per month.

17.07 PRINCIPAL DOMESTIC PARTNERS

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The City will provide medical, dental, and vision benefits to employees with Principal Domestic Partners equivalent to those provided to an employee’s spouse. Employees may enroll their eligible Principal Domestic Partners and the eligible dependents of their Principal Domestic Partners subject to eligibility requirements established either by CalPERS or the City and subject to tax regulations of the State of California and the Internal Revenue Service of the United States government.

17.08 RETIREE MEDICAL TRUST
The City acknowledges that the Union has entered into an agreement with the Medical Expense Reimbursement Plan of the California Firefighters Benefit Trust (hereafter, the “Trust”). The purpose of the Trust shall be to provide for retiree health expense reimbursement benefits. The Trust shall be, and remain separate and apart from any City health insurance funding program, unless changed by mutual agreement of the parties to this agreement.

A. DEFINED CLASS OF EMPLOYEES RECEIVING CONTRIBUTIONS. The “Defined Class” of employees receiving contributions to the Trust as set forth below, consists of all members of Santa Cruz City Fire Department, Local 1716 B. EMPLOYEE CONTRIBUTION AMOUNT. The City and the Union agree that the City shall withhold a mandatory contribution of $50.00 per pay period on a pre-tax basis from the pay of every employee in the Defined Class who is a member of the bargaining unit represented by the Union and shall transmit such contributions to the Trust pursuant to the requirements in Section D below. No employee in the Defined Class shall be permitted to opt-out of the mandatory contributions or receive any portion of the contribution in cash
C. EMPLOYER CONTRIBUTION AMOUNT. The Employer shall make a mandatory contribution of $50.00 per pay period on a pre-tax basis for every employee in the Defined Class. No employee in the Defined Class shall be permitted to opt-out of the mandatory contributions or receive any portion of the contribution in cash.

D. REMITTANCE OF CONTRIBUTIONS. The City shall remit the above contributions directly to the Trust for the duration of the Memorandum of Understanding. Those contributions shall be remitted on a “per pay period” basis in one aggregate ACH or wire transfer directly to the custodian of the Trust within 30 days of the date the payment would have been payable to the employee.

The Employer hereby acknowledges receipt of the Trust Agreement governing the Trust and will comply with rules set by the Trust Office in regard to reporting and depositing the required contributions set forth herein.

E. REPORTING TO TRUST OFFICE. The City shall electronically submit to the Trust a monthly report of contributing employees for each contribution sent to the Trust, in the format requested by the Trust, and received by the Trust Office within five (5) days of receipt of the contribution funds.

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The City shall also provide an initial report of information for all contributing employees, as reasonably requested by the Trust; and shall send updates to this information to the Trust Office whenever the City has notice of changes to the information.

F. MODIFICATION OF EMPLOYEE CONTRIBUTION AND LEAVE
AMOUNTS. The City and the Union agree that the Union has the right, subject to approval of its members according to the Union’s internal rules, to prospectively modify the amount of the mandatory employee monthly contribution (Section B), or to include the mandatory transfer of employee leave where an employee is eligible to receive a monetary payout of accrued leave during the course of this Agreement, so long as the modification is mandatory for all employees covered by this Agreement.

G. LIMITATION OF LIABILITY. The City and Union agree that the Union shall hold the City harmless for the City's actions related to this section and indemnify the City against any liability the City incurs as a result of this section, including but not limited to, its agreement to allow the Union to participate in a post-retirement healthcare trust and/or the City's processing of payroll deductions as set forth in this section.

SECTION 18.00 - GRIEVANCE PROCEDURE

18.01 PURPOSE
To assure prompt and fair treatment of employee grievances related to employment. Any employee covered by this Memorandum of Understanding may file a grievance.

18.02 DEFINITIONS
A grievance is defined as an alleged violation, misinterpretation or misapplication of the provisions of this Memorandum of Understanding or, the City’s Personnel Rules and Regulations.

18.03 LIMITATIONS
A. A grievant may be represented by any representative of their choosing in preparing and presenting a grievance.

B. No reprisal shall result against any employee who presents a bona fide grievance under this procedure.

C. Time limits may be extended by written mutual agreement of the parties. Absent such agreement, grievances may be advanced to the next step if time limits are not met.

D. A grievance shall be considered settled in favor of the other party if, at any step, a decision is not rendered or appealed within the specified time limit.

E. Only upon mutual written agreement between the parties may Step I of the grievance procedure be waived.

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F. Grievances may, by mutual agreement in writing, be referred back for further consideration or discussion to a prior Step, or advanced to a higher Step of the grievance procedure. If a grievance is moved either forward or backward to another Step, the time limits at that Step shall be controlling shall begin on the date the parties agree to the move.

18.04 CONSOLIDATION
Concurrent grievances alleging violation of the same provisions shall be consolidated for the purpose of this procedure as a single grievance.

18.05 PROCEDURES

18.05.01 STEP I
The grievant will first attempt to resolve the grievance through informal discussions with their immediate supervisor or other appropriate department personnel. These discussions must be initiated within ten (10) working days of when the employee knew, or reasonably should have known of the incident upon which the grievance is based. Meetings shall be scheduled in advance and the nature of the grievance stated when the appointment is made. Every attempt will be made by the parties to settle the issue at this level.

18.05.02 STEP II
If the grievance is not resolved through the informal discussions, the employee or their representative may within ten (10) workdays after the informal meeting, submit a written grievance to their department head.

The written grievance must contain in clear, factual and concise language:

1. Name of the grievant.

2. A brief statement as to the date, time and place of the occurrence on which the grievance is based and the facts as the grievant see them.

3. The specific provision of the M.O.U. or Personnel Rules and Regulations which the grievant alleges has been misinterpreted, misapplied or violated.

4. Steps taken toward informal resolution.

5. The action the grievant believes will resolve the grievance.

6. The name of any representative chosen by the grievant.

7. A copy of the written grievance, signed by the grievant, shall be presented at the time of the department head conference.

The Fire Chief or their designee shall hold a conference with the grievant within ten (10) workdays following receipt of the formal grievance. He/she shall prepare a written response within five (5) working days after the conference. Copies shall go to the parties involved including the employee’s representative and the Human Resources Department.

21.58 39

18.05.03 STEP III
If the grievance is not resolved, the grievant may, within five (5) workdays following receipt of the Fire Chief’s or designee’s response, appeal to the City Manager or their representative, stating in writing the basis for the appeal. The grievance may also be appealed if the department head fails to respond within fifteen (15) workdays after submission of the formal grievance.

The City Manager or their representative shall set a hearing within ten (10) workdays of receiving the appeal. The grievant, their representative and other parties summoned by the City Manager or representative shall attend the hearing and present testimony or evidence concerning the grievance. The parties may bring a reasonable number of witnesses to the hearing.

The City manager or their representative shall render a written decision to all parties directly involved with fifteen (15) workdays following the hearing.

18.05.04 STEP IV
If the grievance is not resolved to the satisfaction of the employee at the conclusion of Step III, the employee may appeal the decision of the City Manager to a neutral arbitrator, provided s/he so informs the City in writing within ten (10) working days following receipt of the City Manager’s decision.

Within ten (10) working days from the date of receipt of the appeal, the parties may mutually agree on a neutral party from an independent source to serve as an arbitrator. In the event the parties fail to agree on the neutral party, they shall immediately thereafter jointly request the California State Mediation and Conciliation Service to submit to them a list of five (5) persons qualified and available to act as arbitrator.

If such a list is requested from the State Mediation and Conciliation Service, the parties within five (5) working days of receipt of the list, shall mutually agree upon the person on the list who shall be the Arbitrator. If one person is not mutually agreed upon, the parties shall within five (5) days after receipt of the list of names alternately strike two (2) names from such list with the last remaining name to be the person serving as Arbitrator. The party having first choice to strike a name from the list shall be determined by lot.

The Arbitrator shall have no authority to add to, detract from, alter, amend or modify any provision of this Agreement, or impose on any party hereto a limitation or obligation not explicitly provided for in this Agreement, or to alter any wage rate or wage structure. The decision of the Arbitrator shall be rendered after the evidence and arguments are presented to him/her by the parties in the presence of each other and in post hearing briefs if necessary. The decision of the Arbitrator shall be final and binding upon the parties.

The Arbitrator is requested to expedite the decision as the parties normally expect a decision to be issued within fifteen (15) days after the conclusion of the hearing.

The Arbitrator’s expenses, if any, shall be borne equally by the parties. Each party shall bear the cost of its own representation.

21.59 40
SECTION 19.00 - DISCIPLINARY APPEALS PROCEDURE

19.01 DEFINITION
For the purposes of this article, disciplinary action shall mean suspension, demotion, disciplinary reduction in salary or discharge.

The appeal procedure described herein shall apply to cases of disciplinary action affecting regular employees. It shall not be applicable to probationary employees. Employees have the right to representation at any or all stages of the appeal process.

19.02 PRE-ACTION PROCEDURE

19.02.01 STEP I
Prior to imposing disciplinary action, the supervisor shall first provide the employee a preliminary written notice of the proposed action stating the effective date and the specific grounds and particular facts upon which the action will be taken. The employee shall have access to any known written materials, reports or documents upon which the action is based.

The employee shall have the right to respond to the charges within five (5) workdays from receipt of the notice either orally, in writing, or both, to the Fire Chief. If the Fire Chief is personally involved in the initial investigation and notice process, the City Manager or Director of Human Resources shall appoint a designee to hear the response.

The employee may request an extension of the time to respond for justifiable reasons. Failure to respond within the time specified will result in the employee’s waiver of their procedural rights and final action will be taken.

19.02.02 STEP II
Following a review of a proposed disciplinary action, the Fire Chief, within five (5) workdays of receiving employee’s response, shall render a written decision and send it by registered mail or personal delivery to the employee. A copy shall also be mailed to the employee’s representative.

The employee has the right, within five (5) workdays after receiving the decision, to file a request for appeal with the City Manager. The appeal shall be a written statement, signed by the appellant, explaining the matter appealed from, stating the action desired by the appellant, with their reasons therefore, and stating that the pre-action procedures have been exhausted.

19.03 POST-ACTION APPEAL

19.03.01 STEP III
If the employee files a timely appeal, the City Manager shall, within five (5) workdays after receiving the appeal, designate a hearing officer who shall schedule a hearing not less than five (5) workdays from the date the appeal was received.

The hearing officer may conduct such independent investigation of the matter as he/shethey deems necessary . to evaluate claims raised by the employee during the hearing. However,

21.60 41
the hearing officer shall not initiate an investigation or introduce new factual findings that were not previously disclosed to the employee as part of the basis for their discipline, unless those facts were introduced by the employee during the hearing. In such cases, the hearing officer may include those facts solely to supplement the findings related to the employee’s claims. The appellant shall be given the opportunity to answer or present evidence in opposition to the findings of this independent investigation.

The appellant shall appear personally at the scheduled hearing unless physically unable to do so. The appellant or their representative may produce relevant oral or documentary evidence at the hearing.

Within fifteen (15) workdays following the hearing, the hearing officer shall render a written decision to all parties involved. The hearing officer has the authority to affirm, repeal or modify the disciplinary action.

19.03.02 STEP IV
If the appeal is not resolved to the satisfaction of the appellant at the conclusion of Step III, the employee may appeal the decision of the City Manager to a neutral arbitrator, provided it so informs the City Manager in writing within ten (10) working days following receipt of the City Manager’s decision.

Within ten (10) working days from the date of receipt of the appeal, the parties may mutually agree on a neutral party from an independent source to serve as an arbitrator. In the event the parties fail to agree on the neutral party, they shall immediately, thereafter, jointly request the California State Mediation and Conciliation Service to submit to them a list of five (5) persons qualified and available to act as arbitrator.

If such a list is requested from the State Mediation and Conciliation Service, the parties within five (5) working days of receipt of the list, shall mutually agree upon the person on the list who shall be the arbitrator. If one person is not mutually agreed upon, the parties shall within five (5) days after receipt of the list of names alternately strike two (2)one (1) names from such list with the last remaining name to be the person serving as arbitrator. The party having first choice to strike a name from the list shall be determined by lot.

The arbitrator shall have no authority to add to, detract from, alter, amend, or modify any provision of this agreement, or impose on any party hereto a limitation or obligation not explicitly provided for in this agreement, or to alter any wage rate or wage structure. The decision of the arbitrator shall be rendered after the evidence and arguments are presented to him/her by the parties in the presence of each other and in post hearing briefs, if necessary.

The decision of the arbitrator shall be final and binding upon the parties.

The arbitrator is requested to expedite the decision as the parties normally expect a decision to be issued within fifteen (15) days after the conclusion of the hearing.

For disciplinary action which results in a suspension of greater than three (3) days or less, the losing party shall pay for the cost of the arbitrator. For disciplinary action which results in a suspension of greater than three (3) days or demotion, reduction in salary or discharge, the arbitrator’s expenses shall be borne equally by the parties. In either case, each party shall bear the cost of its own representation.

21.61 42

19.04 FIREFIGHTERS PROCEDURAL BILL OF RIGHTS ACT
During the period of this Memorandum of Understanding, the City and Union agree to adopt and comply with the Firefighter Procedural Bill of Rights Act, codified as California Government Code §§ 3250-3262, effective January 1, 2008.

SECTION 20.00 - WRITTEN REPRIMANDS
A written reprimand may be issued by an employee’s supervisor if an employee has violated a City rule, provision of the M.O.U., or if their performance is in need of improvement. Written reprimands shall be placed in the employee’s personnel file. An employee shall have the right to prepare a written response to the reprimand and have said response placed in their personnel file. An employee may appeal the supervisor’s decision to issue a written reprimand to the Fire Chief by filing an appeal to the Fire Chief within five (5) working days of receipt of the reprimand. The Fire Chief’s decision regarding the written reprimand shall be final.

SECTION 21.00 - SEVERABILITY
This Memorandum is subject to all current and future applicable Federal and State laws, State regulations, California Constitution, and City of Santa Cruz, Charter, Resolutions, or Ordinances.

Should any of the provisions herein contained be rendered or declared invalid by reason of any State or Federal legislation or court action, such invalidations of such part or portions of this Memorandum shall not invalidate the remaining portions hereof and they shall remain in full force and effect insofar as such remaining portions are severable.

SECTION 22.00 - RENEGOTIATIONS
If the Union desires to negotiate a successor M.O.U., then the Union shall serve upon the City during April of the final year of the M.O.U., its written request to begin negotiations as well as its written proposals modifying the M.O.U. Negotiations shall begin within thirty (30) days from the date of receipt by the City of such notice and proposals.

21.62 43

SANTA CRUZ FIREFIGHTERS CITY OF SANTA CRUZ
I.A.F.F., LOCAL 1716
DATED: DATED:

Cody MuhlyEric Azarvand Lisa MurphySara De Leon
Nick HannaEddie Carlson Tim Davis
Ed Carlson

21.63 City Council

AGENDA REPORT
DATE: 05/21/2026
AGENDA OF: 06/09/2026
DEPARTMENT: Human Resources
SUBJECT: Fire Management Association of the City of Santa Cruz Memorandum of Understanding (HR)
LOCATION: Citywide
RECOMMENDATION: Motion to adopt the successor Memorandum of Understanding (MOU) for the Fire Management Association (FMA) of the City of Santa Cruz effective October 11, 2025 through June 30, 2028.

BACKGROUND: On February 10, 2026 a Tentative Agreement on the successor MOU was brought to the City Council (Council). The 2025 - 2028 Successor MOU in its entirety including the changes as agreed is now being provided to Council as a final administrative action.

The Memorandum of Understanding (MOU) with the Fire Management Association (FMA) expired on October 10, 2025. The FMA and the City met and conferred in good faith in accordance with the Meyers-Milias-Brown Act regarding wages, hours, and other terms and conditions of employment. As a result, the FMA and the City have reached a Tentative Agreement on a successor MOU.

As with other labor contracts, the approach to determining successor Fire Management compensation is dependent upon: (1) market status or the latest market study; (2) the Consumer Price Index, San Francisco Bay Area (CPI-U); and (3) available funding. Based on the 2025 Compensation study, the median average of total compensation for fire management classifications is 0.50% above market. The City considers classifications within 5% of the market as competitive. The 2025 compensation study includes the benchmark classification for Fire Battalion Chief.

The FMA and the City have been meeting and conferring on a successor MOU and have reached a Tentative Agreement. In summary, the major terms of the new MOU include changes to the following sections:
 Section 12- Pay Rates and Practices
 Section 13- Holidays
 Section 14- Sick Leave
 Section 16- Bereavement Leave
 Section 24- Disciplinary Appeals Procedure

22.1 DISCUSSION: The 2025 - 2028 Successor MOU in its entirety including the changes as agreed is now being provided to Council as a final administrative action.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: Not applicable.

HEALTH IN ALL POLICIES (HiAP): Approval of the successor agreements for the Fire Management Association addresses the public health pillar of HiAP by supporting operational continuity, ensuring stable leadership in managing essential City services and programs that directly affect community well-being.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: Yes

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: Yes FISCAL IMPACT DESCRIPTION: Additional appropriations to account for the cost of these compensation and benefit changes were approved by City Council in the FY 2026 midyear budget adjustment and are incorporated into the FY 2027 Proposed Budget.

Prepared and Submitted By:

Sara De Leon
HR Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION APPROVING SUCCESSOR MEMORANDUM OF UNDERSTANDING FOR FMA.DOCX

2. EXHIBIT A – FIRE MANAGEMENT MOU – TRACK CHANGES.DOCX

22.2 RESOLUTION NO. NS-XX,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ APPROVING

SUCCESOR MEMORANDUM OF UNDERSTANDING WITH THE FIRE MANAGEMENT

ASSOCIATION
WHEREAS, representatives of the City of Santa Cruz and Santa Cruz Fire Management Association (FMA) have met and conferred in good faith to bargain for a successor agreement; and
WHEREAS, the Tentative Agreement with the FMA has been entered into by the respective parties on October 11, 2025 and duly ratified by the FMA members; and WHEREAS, the terms of the successor Memorandum of Understanding are attached as Exhibit A;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz as follows: The City Council hereby approves the successor Memorandum of Understanding for the Fire Management Association effective October 11, 2025 and expiring June 30, 2028 PASSED AND ADOPTED this 9th day of June, 2026 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

22.3 20252 - 20285

MEMORANDUM OF UNDERSTANDING BETWEEN

THE CITY OF SANTA CRUZ
AND

THE FIRE MANAGEMENT ASSOCIATION OF THE CITY OF SANTA CRUZ

MEMORANDUM OF UNDERSTANDING

CITY OF SANTA CRUZ AND

SANTA CRUZ FIRE MANAGEMENT ASSOCIATION
20252 – 20285

22.4 iv

TABLE OF CONTENTS
SECTION 1.00 – TERM ....................................................................................................................................1 SECTION 2.00 – PREAMBLE ..........................................................................................................................1 SECTION 3.00 – NO ABROGATION OF RIGHTS.........................................................................................1 SECTION 4.00 – EMPLOYEE RIGHTS...........................................................................................................1 SECTION 5.00 – RECOGNITION ....................................................................................................................2

5.01 Payroll Deductions............................................................................................................................2

5.02 Association’s Certification ...............................................................................................................2

5.03 Indemnification.................................................................................................................................2 SECTION 6.00 – JOB ACTIONS ......................................................................................................................3 SECTION 7.00 – NO DISCRIMINATION/RESPECTFUL WORKPLACE CONDUCT ...............................3 SECTION 8.00 – SAFETY ................................................................................................................................3 SECTION 9.00 – NOTIFICATION TO ASSOCIATION .................................................................................3 SECTION 10.00 – WORK SCHEDULE ...........................................................................................................3

10.01 Back-Up Duty Chief Assignment.................................................................................................4 SECTION 11.00 – PERSONNEL ACTION ......................................................................................................4

11.01 Performance Evaluations..............................................................................................................4

11.02 Probation ......................................................................................................................................4

11.02.01 Probationary Period ............................................................................................................4

11.02.02 Objective of Probationary Period........................................................................................5

11.02.03 Rejection of Probationary Employee ..................................................................................5

11.02.04 Extension of Probation........................................................................................................5 SECTION 12.00 – PAY RATES AND PRACTICES........................................................................................5

12.01 Salary Steps ..................................................................................................................................5

12.01.01 Salary Rates Upon Appointment.........................................................................................5

12.01.02 Advancement within the Range ..........................................................................................5

12.02 Working Out of Classification......................................................................................................6

12.03 Salary............................................................................................................................................7

12.04 CalPERS.......................................................................................................................................7

12.04.01 Employees Hired on or Before September 2, 2011 (Tier I) ...............................................7

12.04.02 Employees Hired On or After September 3, 2011 (Tier II)................................................8

12.04.03 Employees Hired On or After January 1, 2013 (Tier III) ...................................................9

22.5 iv

12.04.04 Retirement, All Employees.................................................................................................9

12.05 Operational Compensation/Emergency Callback.......................................................................10

12.06 Longevity....................................................................................................................................11

12.07 On-Call Fire Investigator............................................................................................................11

12.08 Educational Incentive .................................................................................................................11

12.09 Emergency Medical Technician (EMT) Incentive .....................................................................12

12.10 Hazardous Materials (Haz-Mat) Technician Incentive ...............................................................12

12.11 Special Event Compensation ......................................................................................................12

12.12 Bilingual Pay ..............................................................................................................................12 SECTION 13.00 – HOLIDAYS.......................................................................................................................12

13.01 56-Hour Per Week Employees ...................................................................................................12

13.02 40-Hour Per Week Employees ...................................................................................................13 SECTION 14.00 – SICK LEAVE ....................................................................................................................13

14.01 Definition....................................................................................................................................13

14.02 Accrual .......................................................................................................................................14

14.02.01 24-Hour Shift Personnel ....................................................................................................14

14.02.02 40-Hours per Week Personnel ...........................................................................................14

14.02.03 Eligibility ...........................................................................................................................14

14.03 Limitations..................................................................................................................................14

14.04 Sick Leave Incentive Program....................................................................................................15

14.04.01 40-Hour and 56-Hour Per Week Employees .......................................................................15

14.04.02 Vacation Conversion .........................................................................................................15

14.04.03 Retirement Conversion ......................................................................................................16 SECTION 15.00 – VACATION ......................................................................................................................16

15.01 40-hour per Week schedules.......................................................................................................16

15.02 56-hour per Week Schedules ......................................................................................................17 SECTION 16.00 – BEREAVEMENT LEAVE................................................................................................17 SECTION 17.00 – LEAVES OF ABSENCE...................................................................................................17

17.01 Paid Leaves of Absence..............................................................................................................17

17.01.01 Paid Birth/Adoptive Leave ................................................................................................17

17.01.02 Military Duty .....................................................................................................................18

17.02 Unpaid Leaves of Absence...........................................................................................................18

17.02.01 Medical or Personal Leave.................................................................................................18

17.02.02 Pregnancy Disability Leave ...............................................................................................18

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17.02.03 Family Leave .....................................................................................................................19

17.02.04 Conditions Covering Family Leave ...................................................................................20

17.03 Continuation of Benefits During Unpaid Leaves of Absence.....................................................21

17.03.01 Personal Leave...................................................................................................................21

17.03.02 Medical Leave....................................................................................................................21

17.03.03 Family Leave .....................................................................................................................21 SECTION 18.00 – BENEFITS.........................................................................................................................22

18.01 Medical Plan/Flexible Benefits...................................................................................................22

18.01.01 Pre-Tax Optional Benefits .................................................................................................22

18.01.02 Post-Tax Optional Benefits................................................................................................22

18.02 Principal Domestic Partners .......................................................................................................23

18.03 Dental and Vision Benefits.........................................................................................................23

18.04 Retired Health Plan.....................................................................................................................24

18.05 Retiree Medical Incentive...........................................................................................................24

18.06 Disability Retirement Before Age 50 .........................................................................................24

18.07 Life Insurance.............................................................................................................................25

18.08 Long Term Disability Insurance.................................................................................................25

18.09 Medicare Buy Back ....................................................................................................................25

18.10 Health Savings Account .............................................................................................................25 SECTION 19.00 – UNIFORM ALLOWANCE AND REPLACEMENT .......................................................25 SECTION 20.00 – MANAGEMENT BENEFITS...........................................................................................26

20.01 Management Vacation................................................................................................................26

20.02 Optional Management Benefit....................................................................................................27 SECTION 21.00 – CITY PROVIDED VEHICLE...........................................................................................27 SECTION 22.00 – REDUCTION IN FORCE .................................................................................................27

22.01 Lay-Offs .....................................................................................................................................27

22.02 Bumping .....................................................................................................................................28

22.03 Notification.................................................................................................................................28

22.04 Reinstatement .............................................................................................................................28 SECTION 23.00 – GRIEVANCE PROCEDURE............................................................................................28

23.01 Purpose .......................................................................................................................................28

23.02 Definitions ..................................................................................................................................28

23.03 Limitations..................................................................................................................................29

23.04 Procedures ..................................................................................................................................29

22.7 iv

23.04.01 Step I ..................................................................................................................................29

23.04.02 Step II.................................................................................................................................29

23.04.03 Step III ...............................................................................................................................30

23.04.04 Step IV ...............................................................................................................................30 SECTION 24.00 – DISCIPLINARY APPEALS PROCEDURE.....................................................................31

24.01 Definition....................................................................................................................................31

24.02 Pre-Action Procedure .................................................................................................................31

24.02.01 Step I ..................................................................................................................................31

24.02.02 Step II.................................................................................................................................31

24.03 Post-Action Appeal.....................................................................................................................31

24.03.01 Step III ...............................................................................................................................31

24.03.02 Step IV ...............................................................................................................................32

24.04 Firefighter Procedural Bill of Rights Act....................................................................................33 SECTION 25.00 – WRITTEN REPRIMANDS...............................................................................................33 SECTION 26.00 – SEVERABILITY...............................................................................................................33 EXHIBIT A – DISCRIMINATION, HARASSMENT, RETALIATION, AND RESPECTFUL WORKPLACE CONDUCT POLICY .............................................................................................................34 EXHIBIT B – DISCRIMINATION/HARASSMENT/RETALIATION POLICY IMPLEMENTATION AND COMPLAINT PROCEDURE ..............................................................................................................38 EXHIBIT C – RESPECTFUL WORKPLACE CONDUCT POLICY............................................................43 SECTION 1.00 – TERM ....................................................................................................................................1 SECTION 2.00 – PREAMBLE ..........................................................................................................................1 SECTION 3.00 – NO ABROGATION OF RIGHTS.........................................................................................1 SECTION 4.00 – EMPLOYEE RIGHTS...........................................................................................................1 SECTION 5.00 – RECOGNITION ....................................................................................................................2

5.01 Payroll Deductions .................................................................................................................................2

5.02 Association’s Certification.....................................................................................................................2

5.03 Indemnification ......................................................................................................................................2 SECTION 6.00 – JOB ACTIONS ......................................................................................................................3 SECTION 7.00 – NO DISCRIMINATION/RESPECTFUL WORKPLACE CONDUCT ...............................3 SECTION 8.00 – SAFETY ................................................................................................................................3 SECTION 9.00 – NOTIFICATION TO ASSOCIATION .................................................................................3 SECTION 10.00 – WORK SCHEDULE ...........................................................................................................3

10.01 Back-Up Duty Chief Assignment.................................................................................................4

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SECTION 11.00 – PERSONNEL ACTION ......................................................................................................4

11.01 Performance Evaluations..............................................................................................................4

11.02 Probation ......................................................................................................................................4

11.02.01 Probationary Period ............................................................................................................4

11.02.02 Objective of Probationary Period........................................................................................5

11.02.03 Rejection of Probationary Employee ..................................................................................5

11.02.04 Extension of Probation........................................................................................................5 SECTION 12.00 – PAY RATES AND PRACTICES........................................................................................5

12.01 Salary Steps ..................................................................................................................................5

12.01.01 Salary Rates Upon Appointment.........................................................................................5

12.01.02 Advancement within the Range ..........................................................................................5

12.02 Working Out of Classification......................................................................................................6

12.03 Salary............................................................................................................................................7

12.04 CalPERS.......................................................................................................................................7

12.04.01 Employees Hired on or Before September 2, 2011 (Tier I) ...............................................7

12.04.02 Employees Hired On or After September 3, 2011 (Tier II)................................................8

12.04.03 Employees Hired On or After January 1, 2013 (Tier III) ...................................................9

12.04.04 Retirement, All Employees.................................................................................................9

12.05 Operational Compensation/Emergency Callback.........................................................................9

12.06 Longevity....................................................................................................................................10

12.07 On-Call Fire Investigator............................................................................................................11

12.08 Educational Incentive .................................................................................................................11

12.09 Emergency Medical Technician (EMT) Incentive .....................................................................12

12.10 Hazardous Materials (Haz-Mat) Technician Incentive ...............................................................12

12.11 Special Event Compensation ......................................................................................................12

12.12 Bilingual Pay ..............................................................................................................................12 SECTION 13.00 – HOLIDAYS.......................................................................................................................12

13.01 56-Hour Per Week Employees ...................................................................................................12

13.02 40-Hour Per Week Employees ...................................................................................................12 SECTION 14.00 – SICK LEAVE ....................................................................................................................13

14.01 Definition....................................................................................................................................13

14.02 Accrual .......................................................................................................................................13

14.03 Limitations..................................................................................................................................14

14.04 Sick Leave Incentive Program....................................................................................................14

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14.04.01 40-Hour and 56-Hour Per Week Employees .......................................................................14

14.04.02 Vacation Conversion .........................................................................................................14

14.04.03 Retirement Conversion ......................................................................................................15 SECTION 15.00 – VACATION ......................................................................................................................15

15.01 40-hour per Week schedules.......................................................................................................15

15.02 56-hour per Week Schedules ......................................................................................................15 SECTION 16.00 – BEREAVEMENT LEAVE................................................................................................16 SECTION 17.00 – LEAVES OF ABSENCE...................................................................................................16

17.01 Paid Leaves of Absence..............................................................................................................16

17.01.01 Paid Birth/Adoptive Leave ................................................................................................16

17.01.02 Military Duty .....................................................................................................................16

17.02 Unpaid Leaves of Absence...........................................................................................................17

17.02.01 Medical or Personal Leave.................................................................................................17

17.02.02 Pregnancy Disability Leave ...............................................................................................17

17.02.03 Family Leave .....................................................................................................................18

17.02.04 Conditions Covering Family Leave ...................................................................................19

17.03 Continuation of Benefits During Unpaid Leaves of Absence.....................................................20

17.03.01 Personal Leave...................................................................................................................20

17.03.02 Medical Leave....................................................................................................................20

17.03.03 Family Leave .....................................................................................................................20 SECTION 18.00 – BENEFITS.........................................................................................................................20

18.01 Medical Plan/Flexible Benefits...................................................................................................20

18.01.01 Pre-Tax Optional Benefits .................................................................................................21

18.01.02 Post-Tax Optional Benefits................................................................................................21

18.02 Principal Domestic Partners .......................................................................................................21

18.03 Dental and Vision Benefits.........................................................................................................22

18.04 Retired Health Plan.....................................................................................................................22

18.05 Retiree Medical Incentive...........................................................................................................22

18.06 Disability Retirement Before Age 50 .........................................................................................23

18.07 Life Insurance.............................................................................................................................24

18.08 Long Term Disability Insurance.................................................................................................24

18.09 Medicare Buy Back ....................................................................................................................24

18.10 Health Savings Account .............................................................................................................24 SECTION 19.00 – UNIFORM ALLOWANCE AND REPLACEMENT .......................................................24

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SECTION 20.00 – MANAGEMENT BENEFITS...........................................................................................25

20.01 Management Vacation................................................................................................................25

20.02 Optional Management Benefit....................................................................................................25 SECTION 21.00 – CITY PROVIDED VEHICLE...........................................................................................26 SECTION 22.00 – REDUCTION IN FORCE .................................................................................................26

22.01 Lay-Offs .....................................................................................................................................26

22.02 Bumping .....................................................................................................................................26

22.03 Notification.................................................................................................................................27

22.04 Reinstatement .............................................................................................................................27 SECTION 23.00 – GRIEVANCE PROCEDURE............................................................................................27

23.01 Purpose .......................................................................................................................................27

23.02 Definitions ..................................................................................................................................27

23.03 Limitations..................................................................................................................................27

23.04 Procedures ..................................................................................................................................28

23.04.01 Step I ..................................................................................................................................28

23.04.02 Step II.................................................................................................................................28

23.04.03 Step III ...............................................................................................................................28

23.04.04 Step IV ...............................................................................................................................28 SECTION 24.00 – DISCIPLINARY APPEALS PROCEDURE.....................................................................29

24.01 Definition....................................................................................................................................29

24.02 Pre-Action Procedure .................................................................................................................29

24.02.01 Step I ..................................................................................................................................30

24.02.02 Step II.................................................................................................................................30

24.03 Post-Action Appeal.....................................................................................................................30

24.03.01 Step III ...............................................................................................................................30

24.03.02 Step IV ...............................................................................................................................31

24.04 Firefighter Procedural Bill of Rights Act....................................................................................31 SECTION 25.00 – WRITTEN REPRIMANDS...............................................................................................32 SECTION 26.00 – SEVERABILITY...............................................................................................................32 EXHIBIT A – DISCRIMINATION, HARASSMENT, RETALIATION, AND RESPECTFUL WORKPLACE CONDUCT POLICY .............................................................................................................33 EXHIBIT B – DISCRIMINATION/HARASSMENT/RETALIATION POLICY IMPLEMENTATION AND COMPLAINT PROCEDURE ..............................................................................................................37 EXHIBIT C – RESPECTFUL WORKPLACE CONDUCT POLICY............................................................42

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SECTION 1.00 – TERM....................................................................................................................................1 SECTION 2.00 – PREAMBLE .........................................................................................................................1 SECTION 3.00 – NO ABROGATION OF RIGHTS........................................................................................1 SECTION 4.00 – EMPLOYEE RIGHTS..........................................................................................................1 SECTION 5.00 – RECOGNITION ...................................................................................................................2 SECTION 6.00 – JOB ACTIONS .....................................................................................................................3 SECTION 7.00 – NO DISCRIMINATION/RESPECTFUL WORKPLACE CONDUCT ..............................3 SECTION 8.00 – SAFETY ...............................................................................................................................3 SECTION 9.00 – NOTIFICATION TO ASSOCIATION ................................................................................3 SECTION 10.00 – WORK SCHEDULE...........................................................................................................3 SECTION 11.00 – PERSONNEL ACTION .....................................................................................................4 SECTION 12.00 – PAY RATES AND PRACTICES.......................................................................................5 SECTION 13.00 – HOLIDAYS ......................................................................................................................12 SECTION 14.00 – SICK LEAVE ...................................................................................................................13 SECTION 15.00 – VACATION......................................................................................................................16 SECTION 16.00 – BEREAVEMENT LEAVE...............................................................................................16 SECTION 17.00 – LEAVES OF ABSENCE..................................................................................................16 SECTION 18.00 – BENEFITS........................................................................................................................21 SECTION 19.00 – UNIFORM ALLOWANCE AND REPLACEMENT ......................................................25 SECTION 20.00 – MANAGEMENT BENEFITS ..........................................................................................25 SECTION 21.00 – CITY PROVIDED VEHICLE..........................................................................................26 SECTION 22.00 – REDUCTION IN FORCE ................................................................................................26 SECTION 23.00 – GRIEVANCE PROCEDURE...........................................................................................27 SECTION 24.00 – DISCIPLINARY APPEALS PROCEDURE....................................................................30 SECTION 25.00 – WRITTEN REPRIMANDS..............................................................................................32 SECTION 26.00 – SEVERABILITY..............................................................................................................32 EXHIBIT A – DISCRIMINATION, HARASSMENT, RETALIATION, AND

RESPECTFUL WORKPLACE CONDUCT POLICY
EXHIBIT B – DISCRIMINATION/HARASSMENT/RETALIATION POLICY

IMPLEMENTATION AND COMPLAINT PROCEDURE
EXHIBIT C – RESPECTFUL WORKPLACE CONDUCT POLICY

22.12 iv

22.13