Santa Cruz City Council
June 23, 2026

CITY COUNCIL AGENDA
Regular Meeting - June 23, 2026
Updated June 22, 2026 (item 18)
Council Chambers
809 Center Street
Santa Cruz
12:30 P.M. CLOSED SESSION
1:00 P.M. ORAL COMMUNICATIONS, CONSENT, CONSENT PUBLIC HEARING,

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

Correspondence to be included in the agenda packet must be received by 5:00 pm on Monday, June 22nd
PLEASE NOTE:
 Council may take a break(s) as needed.
 Requests for extra speaking time on items other than Oral Communications must be made by 5:00 p.m. on Sunday, June 21st by emailing the Mayor and the City Clerk.

Approval will be confirmed via email.
[email protected] [email protected]
June 23, 2026 City Council 2
The City of Santa Cruz does not discriminate against persons with disabilities. Out of consideration for people with chemical sensitivities we ask that you attend fragrance free. Upon request, the agenda can be provided in a format to accommodate special needs. Additionally, if you wish to attend this public meeting and will require assistance such as an interpreter for American Sign Language, Spanish, or other special equipment, please call the City Clerk’s Department at 420-5030 at least five days in advance so that we can arrange for such special assistance, or email [email protected]. The Cal-Relay system number: 1-800-735-2922.

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

Agenda and Agenda Packet Materials: The City Council agenda and the complete agenda packet containing public records, which are not exempt from disclosure pursuant to the California Public Records Act, are available for review on the City’s website: www.santacruzca.gov/councilmeetings and at the Office of the City Clerk located at 809 Center Street, Room 8, Santa Cruz, California, during normal business hours.

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

Need more information? Contact the City Clerk’s office at 831-420-5030. 12:30 PM
Statements of Disqualification
Public Comment on Closed Session Items
Closed Session

1. Conference With Legal Counsel – Liability Claims (Government Code §54956.95)
1) Claimant: James Edward Abbott
2) Claimant: Robert Ambrose Buchanan, IV
3) Claimant: Steven Raul Enriquez
4) Claimant: John Roskelley
5) Claimant: Glenn Wilson
6) Claimant: Lorraine Barnard
7) Claimant: Olivia Finestead
8) Claimant: Maeson Clevinger
Claims against the City of Santa Cruz
June 23, 2026 City Council 3
Closed Session (continued)

2. Real Property Negotiations (Government Code §54956.8) Property: 1070 River Street
APN: 008-661-17
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Arts Council Santa Cruz County
Under Negotiation: Price, terms of payment, or both
June 23, 2026 City Council 4
City Council
1:00 PM
Call to Order
Roll Call
Presentations

3. Mayoral Proclamation Declaring June as Elder Abuse Awareness Month

4. July is Parks and Recreation Month
Oral Communications - Members of the public may address Council on matters not on the agenda, but within the jurisdiction of the Council. 30 minutes is allocated for Oral Communications. No extra time for groups will be granted.

Presiding Officer's Announcements
Statements of Disqualification
Additions and Deletions
City Attorney Report on Closed Session
Council Meeting Calendar

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

June 23, 2026 City Council 5
Consent Agenda

6. Minutes of the June 9, 2026 City Council Meeting (CC) LOCATION: None
Motion to approve as submitted.

7. First Amendment to the Professional Services Agreement for the LongTerm Safe Parking Program Operations and Management (CM) LOCATION: District 1
Motion to authorize the City Manager to execute the First Amendment to the Professional Services Agreement, in a form approved by the City Attorney, with People First of Santa Cruz County for the operations and management of the Long-Term Safe Parking Program in the amount of $203,257. The Director of Homelessness Response and Community Programs is authorized to approve and execute change orders within the approved budget.

8. First Amendment to the Professional Services Agreement for the City Overlook Emergency Shelter Operations and Management (CM) LOCATION: District 1
Motion to authorize the City Manager to execute the First Amendment to the Professional Services Agreement, in a form approved by the City Attorney, with People First of Santa Cruz County for the operations and management of the City Overlook Emergency Shelter in the amount of $4,192,879. The Director of Homelessness Response and Community Programs is authorized to approve and execute change orders within the approved budget.

9. Second Amendment to the Professional Services Agreement for Downtown Outreach Worker Program (CM)
LOCATION: District 4
Motion to authorize the City Manager to execute the Second Amendment to the Professional Services Agreement, in a form approved by the City Attorney, with Encompass Community Services for the Downtown Outreach Worker Program in the amount of $539,016.

The Director of Homelessness Response and Community Programs is authorized to approve and execute change orders within the approved budget.

June 23, 2026 City Council 6
Consent Agenda (continued)

10. Professional Services Agreement with the Homeless Garden Project for Pathways to Employment Program Pilot (CM)
LOCATION: Citywide
Motion to authorize the City Manager to execute a Professional Services Agreement, in a form to be approved by the City Attorney, with the Homeless Garden Project for the Pathways to Employment Program pilot in the amount of $236,658. The Director of Homelessness Response and Community Programs is authorized to approve and execute change orders within the approved budget.

11. Kron House Lease Amendment with Arts Council Santa Cruz County (ED) LOCATION: District 5
Motion to:
1) Approve and authorize the City Manager to execute a Sixth Amendment to the Lease Agreement with Arts Council Santa Cruz County, in a form to be approved by the City Attorney, to extend the lease term for three years and increase the rental rate; and 2) Approve and authorize the City Manager to execute a Memorandum of Lease, in a form to be approved by the City Attorney, to be recorded in the Santa Cruz County Recorder’s Office.

12. Movie Theater Retention Incentive Pilot Program Extension (ED) LOCATION: District 4
Motion to authorize a one-year extension of the Movie Theater Retention Incentive Pilot Program.

June 23, 2026 City Council 7
Consent Agenda (continued)

13. School Street Staircase Renovation Contract (ED IIG Parks and Paseos c102711) (ED/PW)
LOCATION: District 5
Motion to:
1) Approve the Plans and Specifications for the School Street Staircase Renovation Project (c102711);
2) Authorize the Public Works Director to solicit bids and award the contract, in a form to be approved by the City Attorney; 3) Authorize the Public Works Director to, within the approved project budget, execute change orders and approve modifications of the design, plans, and specifications; and
4) Adopt a CEQA finding of categorical exemption pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and Section 15302 (Replacement or Reconstruction).

14. Third Amendment to the Agreement for Fire Protection and Emergency Response Services and Third Amendment of Lease of the UCSC Fire Station (FD)
LOCATION: District 5 and 6
Motion to authorize the City Manager to execute a Third Amendment to the Agreement for Fire Protection and Emergency Response Services (Third Amendment to Service Agreement) and a Third Amendment of Lease of the UCSC Fire Station (Third Amendment to Lease Agreement) between the City of Santa Cruz (City) and the Regents of the University of California, on behalf of its Santa Cruz Campus (UCSC), in a form approved by the City Attorney and extending the term for one (1) year, with minor modifications.

June 23, 2026 City Council 8
Consent Agenda (continued)

15. Authorize the Purchase of a Fire Boat for the Santa Cruz Fire Department with Fire Public Safety Impact Fee Funds – Budget Adjustment (FD)
LOCATION: District 2, 3, 4, and 6
Motion to adopt a resolution to amend the FY 2026 budget to add $27,437.50 as a transfer from the Public Safety Impact Fee, Fund 217, to the FY 2026 General Capital Investment Program, Fund 311, and to add $27,437.50 in revenue and expenditure budget to project c212608, Fire Boat Purchase for Fire Department.

16. Pass-Through Agreement with Community Bridges - TDA Claimant (FN) LOCATION: Citywide
Motion to authorize and direct the City Manager to execute an agreement with Community Bridges, allowing the City to act as claimant for funds obtained from the Santa Cruz County Regional Transportation Commission (SCCRTC) for Fiscal Year (FY) 2027.

17. Pass-Through Agreement with Volunteer Center of Santa Cruz County - TDA Claimant (FN)
LOCATION: Citywide
Motion to authorize and direct the City Manager to execute an agreement with Volunteer Center of Santa Cruz County, allowing the City to act as claimant for funds obtained from the Santa Cruz County Regional Transportation Commission (SCCRTC) for Fiscal Year (FY) 2027.

The agenda report for the below item was updated.

18. Liability Claims Filed Against the City of Santa Cruz (FN) Motion to reject the liability claims of 1) James Edward Abbott, 2) Robert Ambrose Buchanan, IV, 3) Steven Raul Enriquez, 4) John Roskelley, 5) Glenn Wilson, 6) Lorraine Barnard, 7) Olivia Finestead, and 8) Maeson Clevinger, based on staff recommendation.

June 23, 2026 City Council 9
Consent Agenda (continued)

19. Finance Department Temporary Staffing (FN)
LOCATION: Citywide
Motion to authorize the City Manager to execute a contract amendment to the City’s existing agreement with Robert Half, Inc., in a form to be approved by the City Attorney, for temporary staffing services in the Finance Department, increasing the contract amount by $60,000.00 for a revised total not-to-exceed amount of $140,000.00.

20. Service Employees International Union, Local 521, Memorandum of Understanding (HR)
LOCATION: Citywide
Motion to adopt a resolution adopting the successor Memorandum of Understanding between the Service Employees International Union, Local 521 (SEIU) and the City of Santa Cruz, effective October 11, 2025 through October 10, 2028.

21. FY 2027 Funding for Senate Bill 1 Road Maintenance and Rehabilitation Account (RMRA) (PW)
LOCATION: Citywide
Motion to adopt a resolution approving the FY 2027 allocation of SB 1 Road Maintenance and Rehabilitation funds and authorize the City Manager to submit the project list to the California Transportation Commission.

22. Santa Cruz Seaside Company Conditional Easement Agreement Located Adjacent to 400 Beach Street in the City of Santa Cruz (PW) LOCATION: District 4
Motion to adopt a resolution to approve a conditional easement agreement granted by the City to Santa Cruz Seaside Company (“Boardwalk”) for the installation of an electrical substation located adjacent to 400 Beach Street (APN No. 117-321-04), in a form acceptable to the City Attorney.

June 23, 2026 City Council 10
Consent Agenda (continued)

23. Wastewater Collections Division Lease Agreement - 195 Harvey West Boulevard (PW)
LOCATION: Citywide
Motion authorizing and directing the City Manager to execute a lease agreement, in a form approved by the City Attorney, and any amendments or documents necessary thereto of a non-substantive nature, with J3D Family Limited Partnership and Harvey West Mainini, LLC, collectively as landlord, for real property located at 195 Harvey West Boulevard.

24. Ratify Contract with Granite Construction for On-Call Paving Services (WT)
LOCATION: County (Water Service Area)
Motion to:
1) Ratify a contract with Granite Construction Company (Watsonville, CA) for on-call paving services in an amount not to exceed $200,000 per year, and authorizing the Water Director to execute future contract amendments, in a form approved by the City Attorney, that do not exceed the approved budget; and
2) Adopt a CEQA finding of categorical exemption pursuant to California Code of Regulations Title 14, § 15301, (Class 1 categorical exemption for existing facilities).

25. Contract Amendment to Professional Services Agreement to Errol L.

Montgomery & Associates, Inc. For Groundwater Modeling Services in the Santa Cruz Mid-County Groundwater Basin (WT)
LOCATION: County
Motion to authorize the City Manager to execute a contract amendment, in a form to be approved by the City Attorney, with Errol L. Montgomery & Associates (Oakland, CA) for groundwater modeling in the Mid-County groundwater basin, and authorize the Water Director to execute future contract amendments within the approved project budget.

June 23, 2026 City Council 11
Consent Agenda (continued)

26. Contract Amendment Service Order 12, Change Order 1 with HDR, Inc. for Capital Program Management Services (WT)
LOCATION: Citywide
Motion authorizing the City Manager to execute Contract Amendment Service Order 12, Change Order 1 with HDR, Inc. in the amount of $8,745,255 and in a form to be approved by the City Attorney.

End Consent Agenda
Consent Public Hearing

27. Cooperative Retail Management Business Real Property Improvement District Assessments for FY 2027 (ED)
LOCATION: District 4
Motion to adopt a resolution confirming the Cooperative Retail Management Business Real Property Improvement District FY 2026/2027 Annual Report/Plan and levying Cooperative Retail Management Business Real Property Improvement District Assessments for FY 2027.

June 23, 2026 City Council 12
Consent Public Hearing (continued)

28. 2nd Reading and Final Adoption of Ordinance No. 2026-12 and Ordinance No. 2026-13 Amending the Santa Cruz Municipal Code Title 24, Zoning, Related to Protections Against On-Shore Facilities Supporting Off-Shore Oil and Gas Drilling and Deep-Sea Mining and Exploration, and Corresponding Changes to the City’s Local Coastal Program Implementation Plan (CM/CD/CN)
LOCATION: Citywide
Motion to:
1) Adopt Ordinance No. 2026-12 adding Section 24.06.093 to Chapter

24.06 – Zoning Map and Text Amendments and amending Sections

24.06.090 and 24.10.1620 of the Santa Cruz Municipal Code (SCMC) related to adding protections against on-shore facilities supporting offshore oil and gas drilling and deep-sea mining exploration and development;
2) Adopt Ordinance No. 2026-13 amending the Local Coastal Program Implementation Plan (LCP IP) and amending Section 24.10.1525 of the SCMC to add protections against on-shore facilities supporting deep-sea mining exploration and development; and
3) Adopt a resolution directing staff to submit Ordinance No. 2026-13 to the California Coastal Commission.

General Business

29. Independent Police Auditor Report 2025 (CM)
LOCATION: Citywide
Receive the 2025 annual report from the City’s Independent Police Auditor, OIR Group.

June 23, 2026 City Council 13
General Business (continued)

30. Proposed Resolution Authorizing Application for the California Prohousing Designation Program (CD)
LOCATION: Citywide
Motion to:
1) Adopt a resolution to apply for a new Prohousing Designation from the California Department of Housing and Community Development (HCD); and
2) Authorize the Director of Community Development to execute and deliver the application and any related program documents required for participation in the Prohousing Designation Program.

31. Two Resolutions Ordering an Election on November 3, 2026: 1) To add Four Charter Amendment Ballot Measures, and 2) To add a Mayoral Election (CC)
LOCATION: Citywide
Motion to:
1) Adopt a resolution ordering an election to be held on November 3, 2026 for the purpose of submitting to the voters four measures to amend the City Charter; and
2) Adopt a resolution ordering an election to be held on November 3, 2026 for the purpose of submitting to the voters the two Mayoral candidates who received the most votes in the June 2, 2026 Primary election.

32. Ordinance Amending Santa Cruz Municipal Code Section 1.18.020 to Adjust the Salaries of the Mayor and Councilmembers (CN) LOCATION: Citywide
Motion to:
1) Introduce for publication the proposed ordinance to adjust the salaries of the Mayor and Councilmembers; and
2) Direct staff to annually, at or around the same time as the City Council’s budget hearings or budget adoption, prepare a proposed ordinance for City Council’s consideration that would adjust the salaries of the Mayor and Councilmembers.

June 23, 2026 City Council 14
Public Hearing

33. 201 Front Street: CP25-0116 (APN 007-031-04) Nonresidential Demolition Authorization Permit, Coastal Permit, Design Permit, Administrative Use Permit, Heritage Tree Removal Permit, and Downtown Density Bonus Request to Demolish a Commercial Building and Construct an Eight-Story Mixed-use Building Consisting of Approximately 12,000 Square Feet of Ground Floor Commercial Space, Live/Work Units on the Ground Floor, and 245 Rental Apartments on a Parcel Located in the CBD (Central Business District) Subdistrict E – Lower Pacific Avenue/CZ-O (Coastal Zone Overlay)/FP-O (Floodplain Overlay) Zone Districts and Within the South of Laurel Area District of the Downtown Plan. Environmental Review: Statutory Exemption Pursuant to Public Resources Code Section 21080.66. Applicant: Owen Lawlor, Lawlor Land Use Owner: 421 E 18th Street Property Partnership. (CD)
LOCATION: District 4
Motion to adopt a resolution acknowledging the environmental determination (Statutory Exemption pursuant to Public Resources Code Section 21080.66) and approval of the Nonresidential Demolition Authorization Permit, Coastal Permit, Design Permit, Administrative Use Permit, Heritage Tree Removal Permit, and Downtown Density Bonus request based on the findings listed in the draft Resolution and the Conditions of Approval attached as Exhibit “A.”
Adjournment
June 23, 2026 City Council 15

INFORMATION ITEMS PREVIOUSLY DISTRIBUTED TO CITY COUNCILMEMBERS ADDENDUM TO CITY COUNCIL AGENDA – JUNE 23, 2026

34. Finance Department: Update on Cost Recovery Percentages for Citywide Fees 6/15/26 (FNFYI 379)

MAYOR'S PROCLAMATIONS
ADDENDUM TO CITY COUNCIL AGENDA – JUNE 23, 2026

35. Proclaiming June 17, 2026 as “Truett Etzel Bobo Day” and encouraging all citizens to join in wishing him a Happy 80th Birthday and celebrating his lifetime of godly devotion.

36. Proclaiming the month of June 2026 as “Hot Car Awareness Month” and encouraging all citizens to practice the life-saving habit of looking before locking to help protect children and prevent needless loss of life.

37. Proclaiming Saturday, June 13, 2026 as “Juneteenth Celebration Day” and encouraging all residents, visitors, and members of our community to join in joyful celebration of this momentous occasion, honoring both the historic significance of Juneteenth and the proud thirty-five-year tradition through which Santa Cruz has uplifted and cherished this important holiday.

June 23, 2026 City Council 16
Advisory Body Appointments
The following positions are either currently vacant or the terms are due to expire.

Council will make appointments at a future meeting.

Board of Building and Fire Appeals Two openings – at-large nominations County Library Advisory
Commission
One opening – at-large nomination
Downtown Commission Two openings – to be appointed by
Councilmembers Golder and O’Hara
Sister Cities Committee One opening – at-large nomination Public Hearing
If, in the future, you wish to challenge in court any of the matters on this agenda for which a public hearing is to be conducted, you may be limited to raising only those issues which you (or someone else) raised orally at the public hearing or in written correspondence received by the City at or before the hearing.

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

July Is Parks and
Recreation Month

PARKS &RECREATION
Get outside, try something new,
connect with your community,
and make the most of everything
we have to offer—from exciting
classes to fun-filled events for all
ages. Let’s make this a month to
remember!

4.1 Celebrated Nationwide through NRPA
since 1985
1 Recognizes the importance of parks & recreation professionals in building strong, resilient communities 2 3 The 2026 theme is, “The power of”
What is Parks & Recreation Month?

PARKS &RECREATION

4.2 PC: Native Santa Cruz
“The Power of”
• The Power of Connection: Relationships grow,
cultures meet, communities bond.
• The Power of Play: Play sparks creativity, joy,
lifelong learning.
• The Power of Community: Spaces to gather,
celebrate, heal.
• The Power of Nature: Nature restores, inspires,
remains accessible.
• The Power of Belonging: Everyone feels welcomed
and valued.
• The Power of Well-Being: Supports health,
resilience, community strength.

PARKS &RECREATION

4.3 • The Parks Division serves as the steward of
the City’s physical landscape, ensuring natural and developed spaces are resilient and safe.

Department Fast Facts
• The Administration team ensures the
department remains fiscally responsible, strategically aligned, and ready to serve. • The Recreation Division manages the
"heartbeat" of the city, facilitating the events and programs that foster social connection and healthy living.

4.4 Some Events & Programs Throughout the Year
Clam Chowder Cook-Off
45 years strong & the largest
fundraiser for the Department
Pilates Sculpt
Dedicated to moving every
Wednesday at the Civic or LNCC
Aloha Outrigger Races
Fun in the sun and friendly
competition
Get outside, move our body, and
enjoy nature unfolding
Walking Adventure Group
Gain confidence in the beach and
ocean environment through beach
games, ocean activities, conditioning
workouts
Junior Guards
Super Camp, Junior Explorers, The
Spot & Camp Cruz
Summer Camps
Halloween at LNCC & Wharf
Thrill the World Flash Mob, film
competition, mask making & more!
Woodies on the Wharf
Celebrating 30 years this year! This
event brings out over 12,000 visitors
in a single day!

4.5 July 1st Civic
FOPAR Presents “Live at the Lane”
July 1st Lighthouse Pt.

Civic Backstage Tour
July 1st Civic
July is Events Hearts in the Parks Blood Drive
Wednesdays Civic/ LNCC
Weekly Pilates Sculpt

4.6 Varying Days HW Pool
Santa Cruz Archers Demo Day
July 12th DeLa Park
Day on the Beach- Share Adventures
July 11th Cowell Beach
July is Events Free Rec Swim
July 14th Wharf
Tuesday Night Live Concert

4.7 July 14th & 16th SLR Walk
London Nelson Open House
July 27th-31st LNCC
Downtown Significant Tree Walk
July 18th City Hall
July is Events Coastal Watershed Riverwalk
July 28th Wharf
Tuesday Night Live Concert
More Events Online!

4.8 Staff Highlights

4.9 Thanks for your Support!

PARKS &RECREATION

4.10 2026 City Council Meeting Calendar
July 3 - City Hall Closure - Independence Day
July 14 and 28 Meetings Cancelled
August 11 - Regular Meeting
August 25 - Regular Meeting
September 7 - City Hall Closure - Labor Day
September 8 - Regular Meeting
September 11/12 - Rosh Hashanah (City observed - sundown to sundown) October 20/21 - Yom Kippur (City observed - sundown to sundown) September 22 - Regular Meeting
October 13 - Regular Meeting
October 27 - Regular Meeting
November 11 - City Hall Closure - Veteran's Day (observed) November 17 - Regular Meeting
November 26 - City Hall Closure - Thanksgiving Day
November 27 - City Hall Closure - Day After Thanksgiving Day December 4/5 - Hanukkah (City observed - sundown to sundown) December 8 - Regular Meeting
December 22 Meeting Cancelled
December 25

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

MINUTES OF A CITY COUNCIL MEETING
June 9, 2026
Closed Session
12:30 PM
Mayor Keeley opened the City Council Closed Session at 12:31 p.m. in a public meeting via Zoom and in Council Chambers, for the purpose of announcing the agenda, and receiving public testimony.

Roll Call

Present: Councilmembers Trigueiro, Brunner, Newsome, Golder, O’Hara; Vice Mayor Kalantari-Johnson; Mayor Keeley.

Absent: None.

Staff: City Manager M. Huffaker, City Attorney C. Bronson, Deputy City Manager/Director of Economic Development B. Lipscomb, Director of Finance E. Cabell, Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush.

Statements of Disqualification – None.

Public Comment on Closed Session Items
Mayor Keeley opened the public comment period at 12:31 p.m. There were no speakers. Mayor Keeley closed the public comment period at 12:32 p.m., at which time the meeting was closed to the public and Council adjourned to the Courtyard Conference Room.

6.1 June 9, 2026 CITY COUNCIL MINUTES 8278
Closed Session

1. Conference With Legal Counsel – Liability Claims (Government Code §54956.95) 1) Claimant: David Allen Hill
2) Claimant: Rudolf Wories
3) Claimant: Sanders Yixuan Tan
4) Claimant: Bailey James Manoff
Claims against the City of Santa Cruz
Council received a status report, took up under agenda item 18, and no reportable action was taken.

2. Real Property Negotiations (Government Code §54956.8) Property: 17-E Municipal Wharf
APN: 007-331-09
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Socksmith Design, Inc.

Under Negotiation: Price, terms of payment, or both
Council received a status report from the City Negotiator, and no reportable action was taken.

3. Conference With Legal Counsel – Anticipated Litigation (Government Code §54956.9(d)(2))
Significant exposure to litigation (one potential case to be discussed) Council received a status report, and no reportable action was taken.

4. Conference With Legal Counsel – Anticipated Litigation (Government Code §54956.9(d)(4))
Initiation of litigation (one potential case to be discussed) By unanimous vote, Council gave contingent authorization for the City to participate in litigation by way of an amicus brief. The details of the matter are confidential until the matter is filed and served.

6.2 June 9, 2026 CITY COUNCIL MINUTES 8279
City of Santa Cruz
809 Center Street
Santa Cruz, California 95060

MINUTES OF A CITY COUNCIL MEETING
June 9, 2026
1:15 PM
Call to Order – Mayor Keeley called the meeting to order at 1:18 p.m. in Council Chambers.

Roll Call

Present: Councilmembers Trigueiro, Brunner, Newsome, Golder, O’Hara; Vice Mayor Kalantari-Johnson; Mayor Keeley.

Absent: None.

Staff: City Manager M. Huffaker, Assistant City Manager M. Templeton, City Attorney C. Bronson, Deputy City Manager/Director of Economic Development B. Lipscomb, Director of Community Development L.

Butler, Director of Finance E. Cabell, Chief of Fire R. Oatey, Chief People Officer S. De Leon, Director of Information Technology K.

Morgan, Director of Parks and Recreation T. Elliot (via Zoom), Director of Public Works N. Nguyen, Director of Water H. Luckenbach, Superintendent of Recreation T. Hedden-Jones, Principal Planner S.

Easley Perez, Sustainability and Resiliency Officer T. Wise-West, Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush.

Oral Communications
At 1:22 p.m. Mayor Keeley opened Oral Communications for members of the public who wished to speak regarding items not listed on the City Council agenda.

Unidentified person spoke regarding the movie Apocalypto and military frequency weapons.

Unidentified person spoke regarding the Pledge of Allegiance and placement of the United States flag.

6.3 June 9, 2026 CITY COUNCIL MINUTES 8280
Oral Communications (continued)
Roland Seyer spoke regarding the lawsuit Santa Cruz joined against several fossil fuel companies and requested Council send a letter to Congressman Panetta and Senators Padilla and Schiff to urge them to keep HB 8330 and SB 4340 from passing.

Anjali gave a presentation about drowning prevention and requested Council to approve the installation of “ring stations” at City beaches.

Gillian Greensite spoke regarding the lack of visibility at the intersection where Delaware Avenue and Liberty and Monterey Streets meet.

Unidentified person spoke regarding the remodel of the Santa Cruz Inn and asked for an audit of City funds being designated to Housing Matters.

At 1:37 p.m. Mayor Keeley closed Oral Communications.

Presentations

5. Mayoral Proclamation Declaring June 13, 2026 as Juneteenth Jubilation Day Superintendent of Recreation T. Hedden-Jones spoke. Councilmember Brunner read from a proclamation declaring June 13, 2026 as Juneteenth Jubilation Day. Ana Elizabeth, Juneteenth Organizer, spoke.

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

Unidentified person
James Ewing-Whitman
Mayor Keeley closed the public comment period.

6. Shingu Delegation Report Back
Superintendent of Recreation T. Hedden-Jones, Brian Shulman, parent of a Shingu Delegate, and Emily Burton, Shingu Sister Cities Subcommittee CoChair, spoke.

Mayor Keeley opened the public comment period. There were no speakers.

Mayor Keeley closed the public comment period.

6.4 June 9, 2026 CITY COUNCIL MINUTES 8281
Presentations (continued)

7. CityServe Volunteer Awards
Volunteer Coordinator J. Shamoun and Christina Thurston, Director of Volunteer Engagement of the Santa Cruz Volunteer Center, spoke and the awardees were recognized.

At this time Council heard item #35.

Presiding Officer's Announcements – Mayor Keeley announced the agenda was going to be rearranged to hear item #34 immediately following item #32.

Statements of Disqualification – Councilmember Brunner announced she will be recusing herself from items 13 and 30 as they relate to her employment.

Councilmember Trigueiro announced she will be recusing herself from item 12 as it relates to her employment.

Additions and Deletions – None.

City Attorney Report on Closed Session – See page 8278 for the report.

Council Meeting Calendar

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

6.5 June 9, 2026 CITY COUNCIL MINUTES 8282
Consent Agenda
City Manager M. Huffaker responded to Council questions regarding item 12.

Vice Mayor Kalantari-Johnson made a comment on items 12, 16, and 27.

Councilmember Newsome made a comment on item 9, requesting to amend the language of his friendly amendment on item 17 of the May 26, 2026 City Council meeting minutes as follows:

From:
6) Explore prioritizing the reinstated transfer from the General Fund to the Paving Fund for transportation safety projects.

To:
6) Explore prioritizing the reinstated transfer from the General Fund to the Street Maintenance and Rehabilitation Fund for transportation safety projects.

Councilmember Trigueiro made a comment on item 14.

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

James Ewing-Whitman made a comment on item 9.

Unidentified person made a comment on items 11, 14, 16, and 17.

Mayor Keeley closed the public comment period.

Mayor Keeley made a comment on item 14.

MOTION: Councilmember O’Hara moved, seconded by Councilmember Brunner, to approve the Consent Agenda as amended.

ACTION: The motion carried with the following vote.

AYES: Councilmembers Trigueiro (with the exception of item 12), Brunner (with the exception of item 13), Newsome, Golder, O’Hara; Vice Mayor Kalantari-Johnson; Mayor Keeley.

NOES: None.

ABSENT: None.

DISQUALIFIED: Councilmembers Trigueiro (item 12), Brunner (item 13).

6.6 June 9, 2026 CITY COUNCIL MINUTES 8283
Consent Agenda (continued)

9. Minutes of the May 26, 2026 City Council Meeting (CC) LOCATION: None
Motion carried to approve as amended.

10. Resolution Directing Staff to Submit Ordinance No. 2025-18 Related to Extending the Active Life of Permits to the Coastal Commission (CD/ED) LOCATION: 2, 3, 4, and 6
Resolution No. NS-30,659 was adopted directing staff to submit Ordinance No. 2025-18 to the California Coastal Commission for their certification.

11. First Amendment to the Professional Services Agreement for Emergency Shelter Transportation Program Operations and Management (CM) LOCATION: District 1
Motion carried to authorize the City Manager to execute the First Amendment to the Professional Services Agreement, in a form approved by the City Attorney and pending adoption of the FY 2027 budget with Community Bridges/Lift Line, for transportation operations with the Emergency Shelter Program in the amount of $465,125. The Director of Homelessness Response and Community Programs is authorized to approve and execute change orders.

12. Children’s Fund Oversight Committee Funding Recommendations for the Allocation of the FY 2027 and FY 2028 Funds (CM)
LOCATION: Citywide
Motion carried to approve the Children’s Fund Oversight Committee funding recommendations for the allocation of the FY 2027 and FY 2028 Funds.

6.7 June 9, 2026 CITY COUNCIL MINUTES 8284
Consent Agenda (continued)

13. Cooperative Retail Management Business Real Property Improvement District Assessments for FY 2027 (ED)
LOCATION: District 4
Motion carried to:
 Approve the FY 2026/27 Annual Report/Plan prepared by the Downtown Management Corporation; and
 Adopt Resolution No. NS-30, 660 as a Resolution of Intention to levy a Cooperative Retail Management Business Real Property Improvement District Assessment for FY 2027 and schedule a public hearing for June 23, 2026 on the levy of the assessments for FY 2027.

14. Ocean Street Beautification Project – Authorization to Bid and Award an Installation of Landscape Design Contract and Authorization to Execute a Public Art Contract Amendment with Idea Fabrication Labs Santa Cruz, LLC (ED) LOCATION: District 1
Motion carried to:
 Authorize the solicitation of bids and award a landscaping contract, in a form to be approved by the City Attorney, in an amount within Ocean Street Beautification Project budget (c512001) (an amount not to exceed $525,000);
 Approve the Ocean Street Beautification Project Concept Plans, and authorize the City Manager, or designee, to approve final landscaping improvement plans and specifications and execute a contract, in a form to be approved by the City Attorney, for landscaping improvements;  Authorize the City Manager, or designee, to execute an amendment with Idea Fabrication Labs Santa Cruz, LLC, in a form to be approved by the City Attorney, to produce the public art, in an amount of $32,405, for a total public art contract not to exceed $126,635; and
 Adopt a finding of Categorical Exemption pursuant to CEQA Guidelines Sections 15301 (Existing Facilities); 15302 (Replacement or Reconstruction), 15303 (New Construction or Conversation of Small Structures), and 15304 (Minor Alterations to Land).

6.8 June 9, 2026 CITY COUNCIL MINUTES 8285
Consent Agenda (continued)

15. Amended and Restated Municipal Wharf Lease Agreement with Socksmith Design, Inc. for City-Owned Commercial Space at 17-E Municipal Wharf (ED) LOCATION: District 4
Motion carried to:
 Approve and authorize the City Manager to execute an Assignment and Assumption of Lease Agreement whereby Sockshop & Shoe Company, Inc. (Assignor) agrees to assign all of Assignor’s rights, title, obligations and interest in the Wharf Lease Agreement dated February 1, 2017 to Socksmith Design, Inc. (Assignee), in a form approved by the City Attorney, for the commercial retail space located at 17-E Municipal Wharf;  Approve and authorize the City Manager to execute the Amended and Restated Municipal Wharf Lease Agreement with Socksmith Design, Inc., and any documents, amendments or extensions of a non-substantive nature, in a form approved by the City Attorney, for the commercial retail space located at 17-E Municipal Wharf;
 Approve and authorize the City Manager to execute a Memorandum of Lease, in a form approved by the City Attorney, to be recorded in the Santa Cruz County Recorder’s Office; and
 Adopt a finding of categorical exemption pursuant to the following CEQA guidelines: 14 CCR 15301 (Existing Facilities) and 14 CCR 15061(b)(3) (Common Sense Exemption).

16. Owners Representative Contract for the Coral Street Substance Use Disorder Navigation Center (ED)
LOCATION: District 5
Motion carried to:
 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
 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).

6.9 June 9, 2026 CITY COUNCIL MINUTES 8286
Consent Agenda (continued)

17. 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
Motion carried to:
 Adopt Resolution No. NS-30,661 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  Find that the actions are exempt under CEQA Guidelines Section 15305 - Minor Alterations in Land Use Limitations.

18. Liability Claims Filed Against the City of Santa Cruz (FN) Motion carried to reject the liability claims of 1) David Allen Hill, 2) Rudolf Wories, and 3) Sanders Yixuan Tan; and to return as late claim of 4) Bailey James Manoff based on staff recommendation.

19. General Obligation Refunding Bonds - Tax Rate Authorization (FN) LOCATION: Citywide
Resolution No. NS-30,662 was adopted setting the tax rate for FY 2027 with respect to the City's General Obligation Refunding Bonds.

6.10 June 9, 2026 CITY COUNCIL MINUTES 8287
Consent Agenda (continued)

20. Proposition 4 GANN Appropriations Limit Adjustment Factors (FN) LOCATION: Citywide
Motion carried to:
 Adopt Resolution No. NS-30,663 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. NS-30,524; and  Adopt Resolution No. NS-30,664 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.

21. Santa Cruz Firefighters, I.A.F.F. Local 1716 of the City of Santa Cruz Memorandum of Understanding (HR)
LOCATION: Citywide
Resolution No. NS-30,665 was adopted adopting 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.

22. Fire Management Association of the City of Santa Cruz Memorandum of Understanding (HR)
LOCATION: Citywide
Resolution No. NS-30,666 was adopted adopting 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.

23. Santa Cruz Police Officers’ Association of the City of Santa Cruz Memorandum of Understanding (HR)
LOCATION: Citywide
Resolution No. NS-30,667 was adopted adopting the successor Memorandum of Understanding for Santa Cruz Police Officers’ Association (POA) of the City of Santa Cruz effective March 14, 2026 through March 23, 2029.

6.11 June 9, 2026 CITY COUNCIL MINUTES 8288
Consent Agenda (continued)

24. 2025 Santa Cruz Wharf End Interim Repair Project (c302612) - Notice of Completion (PR)
LOCATION: District 4
Motion carried to:
 Accept the work of Jilk Heavy Construction (Brea, CA) as completed per plans and specifications;
 Authorize the filing of the Notice of Completion for the 2025 Santa Cruz Wharf End Interim Repair Project (c302612); and
 Authorize the Parks and Recreation Director to sign the Notice of Completion as the Owner’s Authorized Agent.

25. Depot Bike Park – Phase II of Bike Park Renovation (c302237) (PR) LOCATION: District 4
Motion carried to:
 Approve the design, plans, and specifications for the Depot Bike Park – Phase II of Bike Park Renovation Project (c302237). Authorize the Parks & Recreation Director, or designee, to act on the City’s behalf in approving modifications of the Council approved design;
 Award a contract to procure and install bike ramps at Depot Bike Park to the American Ramp Company in the amount of $261,000. The Director of Parks and Recreation is authorized to execute change orders within the approved project budget; and
 Approve of the California Environmental Quality Act (CEQA) determination contained in this agenda report. The Council’s action is exempt from CEQA review under (1) Common Sense Exemption (14 CCR 15061), (2) Class 1 Categorical Exemption (14 CCR 15301) for existing facilities, (3) Class 2 Categorical Exemption (14 CCR 15302) for Replacement or Reconstruction, and (4) Class 3 Categorical Exemption for New Construction or Conversion of Small Structures (14 CCR 15303).

6.12 June 9, 2026 CITY COUNCIL MINUTES 8289
Consent Agenda (continued)

26. Park Host Program License Agreement – Harvey West Park (PR) LOCATION: District 5
Motion carried to:
 Approve and authorize the City Manager to execute the Park Host Program License Agreement with Kenneth Castro for a one-year term at Harvey West Park; and
 Adopt a finding of categorical exemption pursuant to CEQA Guidelines Section 15301 (Existing Facilities).

27. Metro Rapid Corridors Project (c402615) – Agreement and Budget Adjustment (PW)
LOCATION: District 4
Motion carried to:
 Authorize the City Manager to enter into a reimbursement agreement, in a form acceptable to the City Attorney, with Santa Cruz Metropolitan Transit District, detailing the parties’ responsibilities with respect to the design, construction, and maintenance of the Metro Rapid Corridors Project. The Public Works Director is authorized to enter into amendments within the approved budget;
 Adopt Resolution No. NS-30,668 to amend the FY 2026 budget and appropriate funds in the amount of $1,875,000 for revenue and expenditures of the Metro Rapid Corridors Project (c402615); and  Authorize the City Manager to acquire necessary right-of-way at the southern corners of the Soquel Avenue and Front Street intersection in accordance with APO I28.

6.13 June 9, 2026 CITY COUNCIL MINUTES 8290
Consent Agenda (continued)

28. Second Amendment to the Professional Services Agreement with Miller Maxfield, Inc. for Communications and Planning in Support of the Water Department and its Capital Investment Program (WT)
LOCATION: Water Service Area
Motion carried to:
 Authorize the City Manager to execute the Second Amendment to the Professional Services Agreement, in the form accepted by the City Attorney, with Miller Maxfield, Inc. of Santa Cruz, CA for Communications and Planning in support of the Water Department and its Capital Investment Program; and
 Authorize the Water Director to revise the Second Amendment Scope of Work and execute resulting future Amendments that are within the approved budget.

End Consent Agenda
At 2:11 p.m. Council took a break and returned at 2:29 p.m.

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

Bruce Van Allen made a comment on item 29.

Gillian Greensite made a comment on item 29.

John Hall made a comment on item 29.

Lisa Eckstrom made a comment on item 29.

Adrienne Pearson made a comment on item 29.

Mayor Keeley closed the public comment period.

Councilmember O’Hara pulled item 29 for further discussion.

6.14 June 9, 2026 CITY COUNCIL MINUTES 8291
Consent Public Hearings (continued)
MOTION: Councilmember O’Hara moved, seconded by Vice Mayor KalantariJohnson, to approve the remaining Consent Public Hearing Agenda.

ACTION: The motion carried with the following vote.

AYES: Councilmembers Trigueiro, Brunner (with the exception of item 30), Newsome, Golder, O’Hara; Vice Mayor Kalantari-Johnson; Mayor Keeley.

NOES: None.

ABSENT: None.

DISQUALIFIED: Councilmember Brunner (item 30).

29. 2nd Reading and Final Adoption of Ordinance No. 2026-11 Amending Santa Cruz Municipal Code Section 24.16.045 and Adding Part 5 to Chapter 24.16 Related to the City’s Local Preference Policy (ED/CD)
LOCATION: Citywide
Director of Community Development L. Butler responded to Council questions.

MOTION: Councilmember O’Hara moved, seconded by Vice Mayor Kalantari-Johnson, to:
 Adopt Ordinance No. 2026-11 amending Santa Cruz Municipal Code Section

24.16.045 and adding a new Part 5 to Chapter 24.16 “Local Preference Policy;”
 Direct staff to incorporate the following language into the Local Preference Guidelines as a mandatory requirement going forward:
“Tenant selection plans shall require the owner to obtain and verify the qualifications of prospective residents seeking local preference; such prospective residents must demonstrate their qualification for local preference under the purposes of Chapter 24.16 of the Santa Cruz Municipal Code by providing verifiable evidence of their local residence, current or offered employment, or actual or potential displacement.”  Direct staff to bring a progress report to Council as part of or at the same time as the next annual General Plan Housing Element update that documents compliance of affordable units as provided by the owners, consistent with the Local Preference Guidelines.

6.15 June 9, 2026 CITY COUNCIL MINUTES 8292
Consent Public Hearings (continued)

29. 2nd Reading and Final Adoption of Ordinance No. 2026-11 LOCATION: Citywide (continued)
ACTION: The motion carried unanimously with the following vote.

AYES: Councilmembers Trigueiro, Brunner, Newsome, Golder, O’Hara; Vice Mayor Kalantari-Johnson; Mayor Keeley.

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

30. Downtown Association: Parking and Business Improvement Area Assessments for FY 2027 (ED)
LOCATION: District 4
Resolution No. NS-30,669 was adopted confirming the Parking and Business Improvement Area FY 2027 Plan prepared by the Downtown Association and levying the Parking and Business Improvement Area Assessments for FY 2027.

31. Acceptance of Proposed Modifications to Local Coastal Program Beaches and Bluffs Hazards Adaptation Chapter as Requested by the California Coastal Commission (CD)
LOCATION: Districts 2, 3, 4, and 6
Motion carried to:
 Adopt Resolution No. NS-30,670 acknowledging receipt of Coastal Commission action letter from the California Coastal Commission including the suggested modifications, approving the suggested modifications, and directing staff to submit the approval to the California Coastal Commission Executive Director, and
 Acknowledge the determination that the suggested modifications are exempt from environmental review under California Environmental Quality Act (CEQA) Guidelines Section 15265 and Public Resources Code Section 21080.9.

6.16 June 9, 2026 CITY COUNCIL MINUTES 8293
Public Hearing

32. Public Hearing on 2025 Urban Water Management Plan (WT) LOCATION: Water Service Area
Principal Planner S. Easley Perez gave a presentation and responded to Council questions.

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

Garrett
Mayor Keeley closed the public comment period.

MOTION: Councilmember O’Hara moved, seconded by Councilmember Trigueiro, to receive the 2025 Urban Water Management Plan and Water Shortage Contingency Plan.

ACTION: The motion carried unanimously with the following vote.

AYES: Councilmembers Trigueiro, Brunner, Newsome, Golder, O’Hara; Vice Mayor Kalantari-Johnson; Mayor Keeley.

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

At this time, Council heard item #34.

6.17 June 9, 2026 CITY COUNCIL MINUTES 8294
General Business

33. Amendments to Municipal Code Title 24, Zoning, Related to Protections Against On-Shore Facilities Supporting Off-Shore Oil and Gas Drilling and Deep-Sea Mining and Exploration, and Corresponding Changes to the City’s Local Coastal Program Implementation Plan (CM/CD/CN)
LOCATION: Citywide
Vice Mayor Kalantari-Johnson introduced the item.

Sustainability and Resiliency Officer T. Wise-West gave a presentation.

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

Josie Lester
Katie Thompson
George Leonard
Susan Cavalieri
Shaun Burns
Gwynn Benner
Mayor Keeley closed the public comment period.

MOTION: Vice Mayor Kalantari-Johnson moved, seconded by Councilmember Golder, to:
 Introduce for publication Ordinance No. 2026-12 adding Section 24.06.093 to Chapter 24.06 – Zoning Map and Text Amendments and amending Sections 24.06.090 and 24.10.1620 of the Santa Cruz Municipal Code (SCMC) related to adding protections against on-shore facilities supporting offshore oil & gas drilling and deep-sea mining and exploration;  Introduce for publication Ordinance No. 2026-13 amending the Local Coastal Program Implementation Plan (LCP IP) and amending Section

24.10.1525 of the SCMC to add protections against on-shore facilities supporting deep-sea mining and exploration; and
 Find that the proposed amendments are categorically exempt from California Environmental Quality Act (CEQA) review, pursuant to: Class 7 Exemption (14 CCR § 15307); Class 8 Exemption (14 CCR § 15308); and the Common Sense Exemption (14 CCR § 15061(b)(3)).

6.18 June 9, 2026 CITY COUNCIL MINUTES 8295
General Business (continued)

33. Amendments to Municipal Code Title 24, Zoning, Related to Protections Against On-Shore Facilities Supporting Off-Shore Oil and Gas Drilling and Deep-Sea Mining and Exploration, and Corresponding Changes to the City’s Local Coastal Program Implementation Plan (CM/CD/CN) LOCATION: Citywide (continued) ACTION: The motion carried unanimously with the following vote.

AYES: Councilmembers Trigueiro, Brunner, Newsome, Golder, O’Hara; Vice Mayor Kalantari-Johnson; Mayor Keeley.

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

At this time, Council heard Presentation item #7.

34. Adoption of 2025 Urban Water Management Plan and Water Shortage Contingency Plan (WT)
LOCATION: Water Service Area
Mayor Keeley opened the public comment period. There were no speakers.

Mayor Keeley closed the public comment period.

MOTION: Councilmember Brunner moved, seconded by Councilmember Trigueiro, to:
 Adopt Resolution No. NS-30,671 adopting the 2025 Urban Water Management Plan and authorizing the Water Director to file a copy of the plan with the California Department of Water Resources; and  Adopt Resolution No. NS-30,672 adopting the Water Shortage Contingency Plan and authorizing the Water Director to file a copy of the Water Shortage Contingency Plan, as a component of the 2025 Urban Water Management Plan, with the California Department of Water Resources.

ACTION: The motion carried with the following vote.

AYES: Councilmembers Trigueiro, Brunner, Newsome, Golder, O’Hara; Mayor Keeley.

NOES: None.

ABSENT: Vice Mayor Kalantari-Johnson.

DISQUALIFIED: None.

At 3:34 p.m. Council took a break and returned at 3:45 p.m. to hear item #33.

6.19 June 9, 2026 CITY COUNCIL MINUTES 8296
General Business (continued)

35. Budget Adoption

35.1. Fiscal Year 2027 Proposed Budget Adoption (FN) LOCATION: Citywide

35.2. Resolution Amending the City of Santa Cruz Personnel Complement and Classification and Compensation Plans for Various Departments (HR) LOCATION: Citywide
Director of Finance E. Cabell gave a presentation.

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

Garrett
Mayor Keeley closed the public comment period.

MOTION: Councilmember O’Hara moved, seconded by Councilmember Golder, to:
 Adopt Resolution No. NS-30,673 adopting the Fiscal Year (FY) 2027 Budget, including the Capital Investment Program (CIP), effective July 1, 2026; authorize the City Manager to allocate within the applicable funds the FY 2027 changes to the Proposed Budget to the appropriate accounting classification; and approve related and applicable transfers in/out between funds; and authorize the Finance Director to create additional appropriations to provide for commitments carried over from the prior fiscal year, including contract and purchase order encumbrances and unexpended project balances, so long as there is a sufficient fund balance to finance these commitments;
 Approve the CIP project exclusions from the Public Art transfer calculation for FY 2027;
 Accept the Water Commission’s recommendations regarding the Water Department’s FY 2027 Operating and Capital Investment Program;  Adopt Resolution No. NS-30,674 amending the City of Santa Cruz Personnel Complement and Classification and Compensation Plans for - City Manager’s Office, Finance, Human Resources, Information Technology, Economic Development, Parks and Recreation, Police, Public Works, and Water; and  Allocate $20,000 to offset permit fees for the Homeless Garden Project.

6.20 June 9, 2026 CITY COUNCIL MINUTES 8297
General Business (continued)

35. Budget Adoption (continued)
ACTION: The motion carried unanimously with the following vote.

AYES: Councilmembers Trigueiro, Brunner, Newsome, Golder, O’Hara; Vice Mayor Kalantari-Johnson; Mayor Keeley.

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

Adjournment – Councilmember O’Hara moved, seconded by Councilmember Golder, to adjourn. By consensus City Council adjourned at 5:09 p.m.

Respectfully Submitted:

Julia Wood, Deputy City Clerk Administrator
Attest:

Bonnie Bush, City Clerk Administrator
Approved:

Fred Keeley, Mayor

6.21 City Council

AGENDA REPORT
DATE: 06/04/2026
AGENDA OF: 06/23/2026
DEPARTMENT: City Manager
SUBJECT: First Amendment to the Professional Services Agreement for the LongTerm Safe Parking Program Operations and Management (CM) LOCATION: District 1
RECOMMENDATION: Motion to authorize the City Manager to execute the First Amendment to the Professional Services Agreement, in a form approved by the City Attorney, with People First of Santa Cruz County for the operations and management of the Long-Term Safe Parking Program in the amount of $203,257. The Director of Homelessness Response and Community Programs is authorized to approve and execute change orders within the approved budget.

BACKGROUND: With the adoption of the Oversized Vehicle Ordinance (OVO) in October 2021, the City Council (Council) directed staff to open a three-tiered safe parking program. In August of 2022, the City of Santa Cruz (City) opened the Long-Term (Tier 3) Safe Parking Program in the front parking lot of the National Guard Armory building. A contract was awarded to the Association of Faith Communities (AFC), the fiscal sponsor of The Free Guide, to operate this program based upon proposals received for safe-parking programs in response to the City’s Request for Qualifications for an array of homelessness services. This 24/7 Safe Parking Program for oversized vehicles provides free parking and wraparound supportive services including case management and housing navigation for participants with a capacity of up to 20 oversized vehicles. This program has continued to operate at capacity since it opened in August 2022. This program was the first and remains the only 24/7 safe parking program for oversized vehicles in Santa Cruz County.

On May 11, 2023, the Coastal Commission approved the City’s Coastal Development Permit related to the OVO for a one-year period. The conditions of the approved permit required the continuation of the safe parking program, including the Long-Term (Tier 3) 24/7 program. On May 9, 2024, a new longer term Coastal Development Permit related to the OVO was approved by the Coastal Commission. This permit also includes the provision of a long-term 24/7 safe parking program as a condition of approval.

In early 2024, AFC and The Free Guide communicated to the City a mutual desire to shift contractual responsibility for operation of the Long-Term Safe Parking Program to The Free Guide as an independent entity, rather than under the fiscal sponsorship of AFC. Given

7.1 timing of the contract term, the City determined that the appropriate approach was to issue a Request for Proposals (RFP), to ensure a competitive bid process consistent with procurement policies.

On March 8, 2024, the City issued an RFP for the Operation and Management of the Long-Term Safe Parking for FY 2025. The scope of services called for prospective vendors to provide safe parking services utilizing Housing First, Trauma Informed Care principles. Services include healthy, safe, and secure safe parking spaces for oversized vehicles, access to bathroom and shower amenities, wraparound supportive services, Homeless Management Information System (HMIS) and other data entry, and permanent housing exit-focused case management and referral services.

The City received a proposal from one organization, People First of Santa Cruz County (formerly The Free Guide), which has been operating the Long-Term Safe Parking Program under the fiscal sponsorship of AFC since the inception of this program in August 2022. Based upon the evaluation criteria provided in the RFP, People First of Santa Cruz County provided a highly qualified proposal, and a program design that demonstrated significant results in exits from programs to housing and was awarded the contract for FY 2025.

DISCUSSION: On June 24, 2025, the City Council approved a contract with People First of Santa Cruz County for FY 2026 in the amount of $489,732. This approved budget included $397,028 in personnel costs to support approximately 4.2 full-time equivalent positions, $48,982 in operating costs and $44,521 in indirect costs (10%). The FY 2026 contract represented a continuation of services at the same funding level as FY 2025.

In the past several months, there have been significant impacts to programs and services supporting people experiencing homelessness in Santa Cruz. This includes the dissolution of Downtown Streets Team, the closure of Mental Health Client Action Network, and the cessation of day services at Housing Matters. In the context of these changes, coupled with the continued community need for emergency shelter and interim housing, the City is examining its current array of programs and seeking the most appropriate investments to work towards reducing homelessness. As part of this process, the City is exploring alternative approaches to implementation of a long-term safe-parking program that may be both efficacious and more costeffective. Examples of alternative approaches being explored include the City of Berkeley’s “RV Buyback Program” which combines offers of purchase of RV’s from individuals and placement in interim housing and supportive services; and the potential expansion of overnight safe-parking spaces in the City along with connection to case management and/or housing navigation.

The City provided an informational report to the California Coastal Commission (CCC) regarding the implementation of the Coastal Development Permit related to the Oversized Vehicle Ordinance on April 12, 2026. In this report, staff requested feedback from the CCC on such potential changes to the long-term safe parking program and continued compliance with the Coastal Development Permit. CCC members provided meaningful feedback, indicated receptivity to these kinds of potential changes within a minor modification to the Coastal Development Permit. Staff plans to return to Council with recommended options for modified safe parking programming with supportive services (Tier 3) for consideration in the fall of 2026.

Staff will also continue to be in communication with the CCC and the OVO Stakeholder group as we contemplate potential changes in the coming months.

7.2 At this time, staff recommends approving the first amendment to the professional services agreement with People First of Santa Cruz County to operate and manage the Long-Term Safe Parking Program at its current participant capacity from July 1 through December 31, 2026, while the City continues to evaluate alternative approaches to this work. The proposed first amendment to the professional services agreement with People First of Santa Cruz County for the 6-month period is $203,257. This includes a reduction in personnel costs associated with 1.0 FTE case manager position ($41,500 for the 6-month period). The staffing plan for the program continues to include a program manager, program coordinator, housing navigator, and administrative support (3.2 FTE total) to support the 17 participants.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed Council action is not a “project” under CEQA because it does not have the potential to cause a physical change in the environment directly or indirectly.

HEALTH IN ALL POLICIES (HiAP): HiAP is a collaborative framework designed to improve population health by integrating health considerations into decision-making processes across sectors and policy areas. HiAP is built on three core pillars: equity, public health, and sustainability. Its primary goal is to ensure that policymakers fully consider the health, equity, and sustainability impacts of various policy options during development. The proposed program aligns HiAP principles by promoting public health and equity, ensuring that lower income vehicular dwellers have access to a place where they may park their oversized vehicles. By prioritizing the welfare of vulnerable populations, this initiative reinforces commitment to a healthier, more resilient community.

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: No FISCAL IMPACT DESCRIPTION: FY 2027 funding to support the operations and management of the Long- Term Safe Parking program will come from the General Fund, Safe Parking Program – Tier 3 (p102211) project, in the amount of $203,257. The funding request to support this first amendment to the professional services agreement with People First of Santa Cruz County was included in the FY 2027 budget approved by the City Council.

Prepared By:

Larry Imwalle
Director of Homelessness
Response and Community
Programs
Submitted By:

Bonnie Lipscomb
Deputy City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. DRAFT FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT RVSP.DOCX

2. FY26 PEOPLE FIRST CONTRACT FOR LONG TERM SAFE PARKING..PDF

7.3 Draft First Amendment to Professional Services Agreement with People First June 2026 Page 1

FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH PEOPLE FIRST OF SANTA CRUZ COUNTY
THIS FIRST AMENDMENT (“First Amendment”), effective as of _________, (the “Effective Date”) to the PROFESSIONAL SERVICES AGREEMENT dated July 1, 2025, is made by and between the CITY OF SANTA CRUZ (“City”) and People First of Santa Cruz County (“Consultant”). City and Consultant may be referred to individually as a “Party” and collectively, as the “Parties.”

RECITALS
WHEREAS, City and Consultant have previously entered into that certain Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program dated July 1, 2025 (the “Agreement”), incorporated herein by this reference; and WHEREAS, City and Consultant desire to enter into this First Amendment to the Agreement to extend the term of the Agreement and to amend Section 4: Fees and Payment and Exhibit B: Fee Schedule, as specified herein.

AGREEMENT
NOW, THEREFORE, it is agreed between the Parties to incorporate the above Recitals hereto, and that the Parties agree to the following:

1. Section 4 of the Agreement is hereby amended to decrease the total fee charged for the Scope of Work set forth in Exhibit A from $489.732.00 to a new not to exceed amount of $203,257.00.

2. Section 7 of the Agreement is hereby amended to extend the term of the Agreement by six (6) months with the term of the Agreement now terminating on December 31, 2026 instead of June 30, 2026.

3. Exhibit B: Fee Schedule of the Agreement is hereby amended to replace the prior budget amount in Exhibit B of the Agreement with the amended Fee Schedule as specified in Exhibit B-1, attached hereto and incorporated herein.

4. Except as amended by this First Amendment, all other applicable terms and conditions of the Agreement and attachments shall remain in full force and effect. The terms of this First Amendment shall control if any conflict exists.

5. Each party acknowledges that it has reviewed this First Amendment 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 First Amendment.

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

7. The Parties may execute this First Amendment 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.

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

IN WITNESS WHEREOF, the City and the Consultant have executed this First Amendment effective as of the Effective Date first written above.

Approved As To Form:

By: ______________________________ Date: ___________
Office of the City Attorney

CONSULTANT
By: ______________________________ Date: __________________ Printed: __________________________ Title: _________________________ By: ______________________________ Date: __________________ Printed: __________________________ Title: __________________ a. Corporation – 2 officer signatures required (one from each group, unless person signing holds officer positions in both Group 1 and 2):

Group 1: Chief Executive Officer, Chairman of the Board, President, or Vice President Group 2: Secretary, Assistant Secretary, Chief Financial Officer, Treasurer, Assistant Treasurer b. Partnership - Signature of General Partner, or signature of partner who is authorized to execute documents per the Certificate of Partnership. If authorized partner is a corporation, follow Corporation signature requirement. c. LLC- For a member-managed LLC, signature of any member. For a manager-managed LLC, signature of the manager. If the LLC has corporate officer designations, follow Corporation signature requirement.

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

7.5 Draft First Amendment to Professional Services Agreement with People First June 2026 Page 3
EXHIBIT B-1

7.6 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 1
Professional Services Agreement With

PEOPLE FIRST OF SANTA CRUZ COUNTY (PEOPLE FIRST)
For OPERATION AND MANAGEMENT OF THE TIER 3 SAFE PARKING PROGARM THIS AGREEMENT for professional services is made by and between the City of Santa Cruz (“City”) and People First of Santa Cruz County (“People First” or “Consultant”), a not for profit corporation, (each is referred to individually as a “Party” and collectively, as the “Parties”) as of July 1, 2025 (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 work 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 proper manner, in accordance with the requirements of this Agreement.

Consultant shall not undertake any work beyond the Scope of Work set forth in Exhibit A unless such additional work is approved in advance and in writing by City. The cost of such additional work shall be reimbursed to Consultant by City on the same basis as provided for in Section 4.

If, in performing the work, 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.

Consultant shall meet with Larry Imwalle, Director Homelessness Response & Community Programs, hereinafter called "Director", or other designated and authorized City personnel, or third parties as necessary, on all matters connected with carrying out of Consultant’s services described in Exhibit A. Such meetings shall be held at the request of either Party. Review and City approval of completed work shall be obtained monthly, or at other intervals as may be mutually agreed upon during this Agreement. Review, approval, or acceptance of Consultant’s work by City or others 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 necessary data and information in the City's possession 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 staff person to serve as his or her representative. The work in progress 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 delayed. If the work is not acceptable, City will inform Consultant of the changes or revisions necessary to secure approval.

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7.7 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 2
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 and in accordance 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.

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 exceed the budget of $489,732.00 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. 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 an authorized representative of Consultant (if Consultant is an entity):
“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 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
The term of this Agreement shall be on the effective date of this Agreement and terminating on June 30, 2026.

At the option of the City, this Agreement may be renewed annually under the same contractual terms and conditions by letter agreement for up to five additional years.

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7.8 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 3
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 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 Docusign Envelope ID: 0EA04023-1AF1-4DA3-AAAF-08CE712F4FD6

7.9 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 4
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 extentsuch 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 http://www.cityofsantacruz.com/home/showdocument?id=59192.

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 itsterms, as well asthe rights and obligations of Consultant and theCity.

SECTION 13: AMENDMENTS
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.

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7.10 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 5
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.

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.

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7.11 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 6

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’sfinal 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 rightsin 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 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, Consultantshall 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.

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7.12 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 7
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 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 Docusign Envelope ID: 0EA04023-1AF1-4DA3-AAAF-08CE712F4FD6

7.13 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 8
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 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 Docusign Envelope ID: 0EA04023-1AF1-4DA3-AAAF-08CE712F4FD6

7.14 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 9
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.cityofsantacruz.com/government/city-departments/public-works/stormwater/best-managementpractices

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.

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 Docusign Envelope ID: 0EA04023-1AF1-4DA3-AAAF-08CE712F4FD6

7.15 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 10
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:

City Manager’s Office
Larry Imwalle
809 Center St., Rm 10
Santa Cruz, CA 95062
[email protected]
831-420-5405
To CONSULTANT:

People First of Santa Cruz County
Evan Morrison
PO Box 7120
Santa Cruz, CA 95061
[email protected]
831-761-9930
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.

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]
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7.16 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 11
Approved As To Form:

By: _____________________________ Date: __________________ Office of the City Attorney, Ashley Wheelock

CITY OF SANTA CRUZ
By: _____________________________ Date: _________________ Matt Huffaker
City Manager

CONSULTANT
By: _____________________________ Date: __________________ Printed: ___________________________ Title: __________________ By: _____________________________ Date: __________________ Printed: ___________________________ Title: __________________ July 2, 2025
Docusign Envelope ID: 0EA04023-1AF1-4DA3-AAAF-08CE712F4FD6 Katayun Salehi
7/7/2025
Director of Administration
7/7/2025
Evan Morrison Executive Director
7/8/2025

7.17 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 12
EXHIBIT A: SCOPE OF WORK
Purpose and Strategic Objectives
The City of Santa Cruz is committed to advancing a housing-focused emergency shelter system that provides shortterm stabilization, supports dignified living conditions, and serves as a critical step in the crisis response to homelessness. The primary purpose of the Long-Term Safe Parking Program is to help individuals experiencing homelessness transition from living in vehicles into permanent housing or stable reunification with supportive networks, in alignment with the City’s strategic goals and emerging State and regional expectations.

This contract reflects the City’s desire to move toward a more accountable and outcome-oriented sheltering model by:
• Emphasizing individualized housing planning and active case management; • Establishing performance expectations tied to housing exits, length of stay, and participant engagement; • Encouraging collaboration with County and nonprofit partners to provide wraparound supports; • Promoting continuous quality improvement informed by participant feedback and data monitoring.

The Consultant will provide services in alignment with these objectives and will be expected to contribute to the City’s broader homelessness response strategy, including efforts to ensure regional coordination, operational efficiency, and measurable housing outcomes.

SCOPE OF WORK OVERVIEW
The City of Santa Cruz (CITY) is entering into a contract with People First of Santa Cruz, a California Non-Profit Corporation (“Consultant”), to operate a Safe Parking Program for unsheltered individuals living in their vehicles.

CONSULTANT shall operate a 24-hour emergency safe parking program, 7 days per week, located at 301 Armory Road in Santa Cruz. The safe parking program will be sited at the Armory north parking lot (within the fenced area) for up to 20 oversized vehicles. Services will include safe and secure parking spots; access to bathroom and shower amenities; and case management aimed at permanent housing exit-focused linkages and referralservices.

PERFORMANCE MEASUREMENTS
How Many Services
Will Be Provided? How Well Will Services Be Provided? Is Anyone Better Off? A minimum of 15
unduplicated
individuals will
receive program
services per night
during the contract
period.
100% of enrolled participants will have a
completed assessment and entry into HMIS
within 14 days of program enrollment.

Data Collection Tools: Monthly client
reports & Homelessness Management
Information System (HMIS)
20% of program participants will exit
homelessness to a permanent housing
destination within 12 months.
60% of program participants will have
become housing ready within 12 months.
70% of program participants will have a
documented instance of overcoming a
housing barrier within 4 months of
entering the program.

Data Collection Tool: HMIS

SERVICE PRINCIPLES
CONSULTANT shall ensure the program adheres to Housing First, Trauma Informed Care, and Harm Reduction principles:

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7.18 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 13

HOUSING FIRST
➢ CONSULTANT shall conduct all emergency sheltering activities in adherence with the Core Components of Housing First, pursuant to State Welfare and Institution Code Section 8255(b). ➢ There are no requirements for sobriety, income, adherence to substance use treatment, mental health treatment, and/or participation in case management in order to receive shelter services. The focus is on shelter as a step towards permanent housing. CONSULTANT shall work to ensure addiction and mental health issues do not become barriers to participation in the program, and that referrals are given to recovery providers for those that wish to seek help in confronting their behavioral health challenges.

TRAUMA INFORMED CARE (TIC)
➢ TIC in a shelter is important because individuals currently experiencing homelessness are more likely to have experienced traumatic incidents in their lifetime than people in the general population.

CONSULTANT response to behavioral incidents shall be guided by TIC principles and practice.

HARM REDUCTION
➢ CONSULTANT shall not mandate abstinence from drugs and alcohol or require treatment for mental health symptoms or substance use as a requirement for program eligibility. Responses to participant situations focus on behaviors related to the health and safety of the individual, other participants and staff in the shelter, and the intent is to keep someone in shelter safely while also ensuring the safety of staff and other shelter participants. Exits due to behavior are reserved for only the most severe incidents or when there are multiple incidents that continue to jeopardize the health and safety of participants and staff.

CITY RESPONSIBILITIES

1. CITY shall be responsible for the requisite infrastructure at the Armory north parking lot site for CONSULTANT to provide the services described in this scope of work including sanitation and hygiene facilities.

2. CITY will provide maintenance of the site/structures as well as cover utility costs and responsibilities for the site, including refuse service.

CONSULTANT RESPONSIBILITIES

1. CONSULTANT shall:
a. Ensure the safe parking program operates on a 24 hours/day, 7 days/week basis. b. Provide all shelter participants with case management services including housing navigation and connection to County services
c. Not allow participants to congregate in a group or be outside between 10:00 pm. and 6:00 am. d. Provide each shelter participant a space of at least 6 feet between guests and minimize personal belongings to allow for ingress and egress of guests and staff.

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7.19 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 14

2. CONSULTANT shall ensure that all participants with physical limitations receive the personal assistance needed for personal care needs, such as cleaning, bathing, moving into or out of wheelchairs, or changing clothes, as well as getting into/out of transportation vehicles.

3. CONSULTANT shall ensure that all shelter participants are able to safely access and use all amenities at or brought to the site, such as portable toilets, hand washing stations and showers.

4. CONSULTANT shall maintain a comprehensive set of shelter policies and procedures that align with the City’s housing-focused strategic direction and the performance expectations defined in this agreement. These policies shall support the consistent, safe, and equitable operation of the safe parking program, while also ensuring accountability, trauma-informed service delivery, and measurable progress toward permanent housing outcomes.

CONSULTANT shall ensure its staff can readily access Shelter Program Policies and Procedures for consistency and clarity in conducting contracted services.
a. Policies and procedures must:
• Be reviewed and updated at least annually, or as directed by the City; • Be accessible to all staff, supported by regular training; • Where applicable, be available in participant-accessible formats and languages; • Be used as a foundation for monitoring program performance, safety, and participant experience. • Be provided to the City for review as update and upon request. b. Required categories include:
• Shelter Operations and Site Safety
• Shelter layout plan meeting all applicable zoning, ADA, occupancy, and fire/life-safety codes; • Safety procedures, including incident de-escalation, staff emergency roles, and site lockdown protocols;
• Emergency evacuation plans for fire, earthquake, flood, or severe weather; • Parking, pet, and visitor policies that balance participant access with community safety; • Sanitation, hygiene, and shower access protocols;
• Daily facility and maintenance checklists.

5. CONSULTANT shall maintain a healthy environment.
c. CONSULTANT shall refer any participant with a suspected or known infectious disease to the Homeless Persons Health Project (866-731-HPHP).
d. CONSULTANT shall immediately notify City of any incidents that resulted in a call to 911, including the nature of the call and the outcome of the incident by contacting Megan Bunch – [email protected] or (831) 420-5093.

6. CONSULTANT shall utilize identified systems for data collection and reporting, as well as participant and program assessment and evaluation. Systems shall be approved by the Director, and reports from the system shall be provided to the CITY upon request.

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7.20 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 15

7. CONSULTANT shall take necessary steps to ensure participants do not create or their conduct constitute a nuisance in the immediate vicinity of the site.

8. CONSULTANT shall ensure that pets of participants adhere to the established shelter pet policy.

9. Upon expiration or termination of this AGREEMENT, CONSULTANT shall remove all decorations, display, signs, or equipment from the site.

PERSONNEL & SITE SUPERVISION

1. CONSULTANT shall recruit, hire, and maintain minimum staffing levels as specified in “Exhibit B– Budget” at a skill set sufficient to perform all the duties required to work with referred or identify potentially eligible participants and ensure the following are accomplished:
➢ Assessment of all safe parking applicants
➢ Safe parking participants’ entrance to and exit from the program happen in a coordinated manner ➢ Appropriate oversight of safe parking operations to ensure the health and safety of participants and staff

2. CONSULTANT shall ensure all paid and volunteer staff are instructed on CONSULTANT’s shelter policies and procedures, and that a policy and procedures manual is available on site.

CONNECTION TO ADDITIONAL SERVICES

1. CONSULTANT shall ensure all participants receive an intake assessment, and that information on participants is entered into HMIS.

2. CONSULTANT shall refer and link participants with appropriate community-based resources and programs to meet needs identified during the intake and assessment process. CONSULTANT shall work to ensure participants attain resources to which they were referred by program staff.

3. CONSULTANT shall ensure that participants receive transportation linkage and referral assistance when necessary to obtain appropriate community resources and support. ➢ To assist participants with disabilities to access transportation assistance, CONSULTANT shall contact The Lift Line (https://communitybridges.org/liftline/) for disabled transportation assistance services or a similar free transportation service.

SYSTEMS FOR DATA COLLECTION
CONSULTANT shall utilize the following approved systems for data collection and reporting, as well as participant and program assessment and evaluation.

HOMELESS MANAGEMENT INFORMATION SYSTEM (HMIS)

1. CONSULTANT shall utilize HMIS as the agreed upon collaborative system for program and participant data collection and reporting.

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7.21 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 16

2. CONSULTANT shall complete HMIS data entry for each participant that includes information sharing authorization, new client entry if needed, program intake assessment, participant update information, participant referral information, and participant exit information.

REFERRALS, ELIGIBILITY AND PRIORITY CRITERIA

BASIC REFERRAL CRITERIA

1. CONSULTANT shall accept referrals of participants from the City. With consent from the City, Consultant may also accept referrals from the Coordinated Entry System (CES) or from County agencies in the event there are available beds.

2. CONSULTANT shall ensure that all participants are provided information about the Homeward Bound program and offered Homeward Bound as a diversion option at program intake.

BASIC ELIGIBILITY CRITERIA FOR SHELTER SERVICES
The basic eligibility for entry into the program, as established by City, is that participants are living in their vehicles while experiencing homelessness (literally homeless, unsheltered other than vehicle).

REPORTING AND COORDINATION REQUIREMENTS

1. CONSULTANT shall immediately notify CITY of any significant issues with program participants; time is of the essence. Significant issues include but are not limited to disciplinary or safety issues that impact participants’ shelter stay.

2. Training: CONSULTANT shall ensure that personnel listed under “Exhibit B – Budget” are appropriately trained in Housing First, HMIS, Coordinated Entry, Trauma Informed Care, Harm Reduction, to facilitate their ability to utilize evidence-based Housing First and other best practices.

INVOICES

1. CONSULTANT shall provide monthly invoices, using a template provided by the CITY, to document services costs based on the budget detailed in this scope of work and the attached Exhibit B - Budget document.

2. Monthly invoices shall be submitted via email to CITY authorized staff (Larry Imwalle, [email protected]) within 10 calendar days following the end of the month in which the services were provided.

BACK UP DOCUMENTATION AND REPORTING

1. CONSULTANT shall provide required backup documentation on monthly contracted activities along with monthly invoices when submitted.

2. CONSULTANT shall utilize the HMIS to enter, track and measure data on each participating individual, based on the Performance Measurement outcomes stated in this scope of work.

3. CONSULTANT shall utilize monthly reports and other reports as needed, to enter, track and measure data not already captured within HMIS, based on the Performance Measurement outcomes stated in this scope of work.

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7.22 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 17

SCOPE OF WORK OR BUDGET MODIFICATION

1. Changes to the budget, including transfers between budget categories within a specific fiscal year may be made only through a budget modification, which must be requested to the CITY in writing by the CONSULTANT in advance of the modification, providing the transfer is less than 30% (cumulative), is within a single budget suffix of the approved budget, and is within the total original fiscal year budget.

2. Budget modification requests must be received no later than May 15th of the fiscal year in which the budget modification is applicable and must have prior approval by CITY authorized staff to be approved.

ADDITIONAL TERMS AND CONDITIONS

1. Corrective Action: CONSULTANT shall perform the agreed upon services detailed in this scope of work, submit timely invoices and reports, and work to meet agreed upon outcomes as detailed herein.

CONSULTANT failure to provide any of these agreed upon terms may result in a Corrective Action request.

Corrective Action requests will specify ongoing problems in the performance of these contract terms and a deadline by which to rectify problems and will also require the CONSULTANT to submit a briefCorrective Action Plan detailing how ongoing problems will be resolved. Failure to adequately address steps outlined in the Corrective Action Plan may ·result in the withholding of payment on invoices and/or termination of the contract.

2. Federal Funding: CONSULTANT certifies they are not suspended, debarred, or proposed for debarment from receiving federal funds; declared ineligible to receive federal funds; or voluntarily excluded from participation in covered transactions by any federal department or agency.

3. Uninterrupted Provision of Services: In order to maintain uninterrupted services under this agreement, the CONSULTANT shall ensure that the budgeted staffing for the contracted services is maintained, which includes providing coverage for staff vacancies or leaves of more than two weeks. Additionally, CONSULTANT program and direct service staff must be replaced within 90 days of the start of staffing vacancies.

4. Notification of Personnel Changes: In the event of key personnel changes or leaves of more than two weeks for positions funded by this agreement (e.g., program manager or assistant program manager), the CONSULTANT shall report changes to the CITY within 10 business days of occurrence.

5. Instruction: The CONSULTANT shall provide this Scope of Work to all of its employees who conduct activities under this contract, so that CONSULTANT staff clearly understands expected activities per this agreement. The CONSULTANT will train any new employees who work in any capacities related to the provisions of this contract, in the requirements of this contract.

6. Publicity and Outreach: The CONSULTANT agrees to obtain CITY approval prior to use for all contracted program marketing materials, including but not limited to flyers, brochures, written success stories, social media posts, and website information. The CONSULTANT shall ensure that the CITY logo and name are included on all contracted program marketing materials and will obtain these directly from CITY authorized staff for approved uses.

7. Media Inquiries: Should the CONSULTANT receive press/media inquiries regarding the services provided through this contract, the CONSULTANT shall notify the Homelessness Communication Specialist of the inquiry, at [email protected] or at 831-420-5059. Press/media must also be referred directly to the Communications Specialist for additional information.

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7.23 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 18
EXHIBIT B: FEE SCHEDULE
The total amount payable under this agreement shall not exceed $489,732.20.

Safe Parking Program (“Program”) participants will vary due to a number of factors. This variation in Program participation will impact the costs associated with Program operations. The approved Program budget (below) is based on maximum participation of 20 vehicles. Should participation be lower, the Program costs, and therefore, Consultant invoices, will also be lower. It is therefore necessary that the Consultant provide accurate monthly reports and invoice monthly based on the associated costs incurred.

Consultant will invoice the City on or before the 15th of each month. Monthly invoices should include the following information and costs:
• Average number of Program participants for the invoicing month • Payroll costs with staff levels/house for the invoicing month • Supply costs with list of supplies purchased to support the Program during the invoicing month Budget
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7.24 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 19
EXHIBIT C: WORK SCHEDULE
Consultant shall operate a 24-hour emergency safe parking program, 7 days per week, located at 301 Armory Road in Santa Cruz. The safe parking program will be sited at the Armory north parking lot (within the fenced area) for up to 20 oversized vehicles.

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7.25 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 20
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
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): $2,000,000 PER OCCURRENCE; $2,000,000 AGGREGATE Proof of coverage for $2 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.
• SEXUAL ABUSE OR MOLESTATION (SAM) LIABILITY: If the work will include contact with minors, and the CGL policy referenced above is not endorsed to include affirmative coverage for sexual abuse or molestation, Contractor shall obtain and maintain a policy covering Sexual Abuse and Molestation with a limit no less than $1,000,000 per occurrence or claim. • 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.

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7.26 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 21
• 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
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 noncontributory, 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.
• 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.

Docusign Envelope ID: 0EA04023-1AF1-4DA3-AAAF-08CE712F4FD6

7.27 City of Santa Cruz Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program July 2025 (Form Rev.03/25) Page 22
• 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.

Docusign Envelope ID: 0EA04023-1AF1-4DA3-AAAF-08CE712F4FD6

7.28 Brittany Inclan
From: Judi Grunstra <[email protected]>
Sent: Sunday, June 21, 2026 6:09 PM
To: City Council
Subject: Consent agenda items 7, 8 and 9
Dear Mayor and Council: I have a few questions.

Item 7: Overnight Parking $203K from General Fund
Performance Measurement table
20% of program participants will exit homelessness to a permanent housing destination within 12 months. (Only 20%????)
60% of program participants will have become housing ready within 12 months. (What about the other 40%?)
70% of program participants will have a documented instance of overcoming a housing barrier within 4 months of entering the program.

What does "housing ready" mean? Agreeing to comply with requirements of sobriety, pay a share of rent from disability checks, etc.?
What is an instance of overcoming a "housing barrier"? (landlord not wanting to rent to them? Failure to pay rent? Eviction?)
Item 8: Can someone explain this seeming discrepancy?
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: For FY 2027, funding to support the operations and management of the City Overlook will come from the General Fund, Safe Sleeping and Shelter – Armory (p102202), in the amount of $4,192,879. The funding request to support this first amendment to the professional services agreement with People First of Santa Cruz County was included in the FY 2027 budget for consideration by the City Council.

Item 7: Overnight Parking $203K from General Fund
Performance Measurement table
20% of program participants will exit homelessness to a permanent housing destination within 12 months. 60% of program participants will have become housing ready within 12 months. 70% of program participants will have a documented instance of overcoming a housing barrier within 4 months of entering the program.

Item 9: Downtown Outreach Worker - This money does come from the General Fund ($539K)

7.29 These three items total approximately $5 million. Is this really what taxpayers want their tax dollars spent on, year after year after year? I hope People First achieves results.

Judi Grunstra

7.30 City Council

AGENDA REPORT
DATE: 06/04/2026
AGENDA OF: 06/23/2026
DEPARTMENT: City Manager
SUBJECT: First Amendment to the Professional Services Agreement for the City Overlook Emergency Shelter Operations and Management (CM) LOCATION: District 1
RECOMMENDATION: Motion to authorize the City Manager to execute the First Amendment to the Professional Services Agreement, in a form approved by the City Attorney, with People First of Santa Cruz County for the operations and management of the City Overlook Emergency Shelter in the amount of $4,192,879. The Director of Homelessness Response and Community Programs is authorized to approve and execute change orders within the approved budget.

BACKGROUND: In June of 2021, the City Council approved the Camping Standards and Service Ordinance (CSSO), which directed staff to ensure at least 150 safe sleeping spots were created and maintained. Shortly thereafter, the City of Santa Cruz (City) issued a Request for Qualifications (RFQ) to solicit competitive proposals for a variety of homelessness services, including operation of an emergency shelter. At that time, the City received two competitive bids for operating large shelter programs. The Salvation Army (TSA) scored the highest due to their experience both locally and nationally in shelter operations.

The initial contract with TSA for the City Overlook program operation was approved by the City Council in December 2021 for a 75-space emergency shelter program located on the south lawn of the National Guard Armory building in upper DeLaveaga Park. In June of 2022, the contract was amended to include operating inside the Armory building after the County of Santa Cruz (County) program ceased operations. This allowed for an additional 60 spaces, for a total capacity of 135 spaces. The City Overlook shelter operated continuously at this capacity from 2022-2023.

On February 23, 2024, the City issued a Request for Proposals (RFP) specifically for the Operation and Management of the City Overlook Emergency Shelter for FY 2025. The scope of services called for prospective vendors to provide 24-hour emergency shelter services, 7 days per week, 365 days a year, with a capacity for up to 135 spaces at the shelter. The onsite services include healthy, safe, and secure sleeping quarters, nutritious meals, access to bathroom and shower amenities, and permanent housing exit-focused linkages and referral services. A separate

8.1 vendor, Community Bridges/Lift Line, provides shuttle services on and off site to program participants daily from 6:00 a.m. to 9:00 p.m.

The City received responsive proposals from two organizations: TSA and People First of Santa Cruz County (formerly The Free Guide). Based upon the evaluation criteria provided in the RFP, People First of Santa Cruz County was determined to be the highest scoring proposal and was awarded the contract for FY 2025.

DISCUSSION: People First of Santa Cruz County has been operating and managing the City Overlook emergency shelter since August 1, 2025. In the transition process, People First hired many of the staff members who had been working at the shelter with the previous operator which provided for continuity in operations and familiarity for program participants. One of the notable changes to the staffing plan under People First has been the addition of five full-time case managers that work intensively with program participants to identify needs, set goals, coordinate services, and support them on their pathway to housing. Case management staff have extensive knowledge about county services and receive robust staff training including Housing First, Trauma-Informed Care, and Harm Reduction principles, all of which ensure staff provide quality care to all residents and supports progress towards housing outcomes.

On June 24, 2025, the City Council approved a contract with People First of Santa Cruz County for FY 2026 in the amount of $4,292,879. This approved budget included personnel costs of $3,017,391 for approximately 34 full-time equivalent positions, $885,910 in operating costs, including $542,000 for food service, and $390,000 in indirect costs (10%). The FY 2026 contract represented a continuation of services at the same funding level as FY 2025.

Staff recommends approving the first amendment to the professional services agreement with People First of Santa Cruz County to operate and manage the City Overlook Emergency Shelter for FY 2027. The proposed first amendment to the professional services agreement with People First of Santa Cruz County for the 12-month period is $4,192,879 and includes a $100,000 cost savings in food service.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed Council action is not a “project” under CEQA because it does not have the potential to cause a physical change in the environment directly or indirectly.

HEALTH IN ALL POLICIES (HiAP): HiAP is a collaborative framework designed to improve population health by integrating health considerations into decision-making processes across sectors and policy areas. HiAP is built on three core pillars: equity, public health, and sustainability. Its primary goal is to ensure that policymakers fully consider the health, equity, and sustainability impacts of various policy options during development. The proposed program aligns HiAP principles by promoting public health and equity, ensuring that lower-income individuals have access to life-saving shelter. By prioritizing the welfare of vulnerable populations, this initiative reinforces commitment to a healthier, more resilient community.

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

8.2 FISCAL IMPACT DESCRIPTION: For FY 2027, funding to support the operations and management of the City Overlook will come from the General Fund, Safe Sleeping and Shelter – Armory (p102202), in the amount of $4,192,879. The funding request to support this first amendment to the professional services agreement with People First of Santa Cruz County was included in the FY 2027 budget for consideration by the City Council.

Prepared By:

Larry Imwalle
Director of Homelessness
Response and Community
Programs
Submitted By:

Bonnie Lipscomb
Deputy City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. FIRST AMENDMENT TO PSA – PEOPLE FIRST OVERLOOK EMERGENCY SHELTER.DOCX

2. FIRST AMENDMENT TO PSA - PEOPLE FIRST SAFE PARKING.DOCX

8.3 First Amendment to Professional Services Agreement with People First for City Overlook June 2026 Page 1

FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH PEOPLE FIRST OF SANTA CRUZ

COUNTY FOR OPERATIONS AND MANAGEMENT OF THE CITY OVERLOOK EMERGENCY SHELTER THIS FIRST AMENDMENT (“First Amendment”), effective as of _________, (the “Effective Date”) to the PROFESSIONAL SERVICES AGREEMENT dated July 1, 2025, is made by and between the CITY OF SANTA CRUZ (“City”) and People First of Santa Cruz County (“Consultant”). City and Consultant may be referred to individually as a “Party” and collectively, as the “Parties.”

RECITALS
WHEREAS, City and Consultant have previously entered into that certain Professional Services Agreement for Operations and Management of the City Overlook Emergency Shelter dated July 1, 2025 (the “Agreement”), incorporated herein by this reference; and WHEREAS, City and Consultant desire to enter into this First Amendment to the Agreement to extend the term of the Agreement and to amend Section 4: Fees and Payment and Exhibit B: Fee Schedule, as specified herein.

AGREEMENT
NOW, THEREFORE, it is agreed between the Parties to incorporate the above Recitals hereto, and that the Parties agree to the following:

1. Section 4: Fees and Payment of the Agreement is hereby amended to decrease the Maximum Fee Amount for the total fee charged for the Scope of Work set forth in Exhibit A from $4,292,879.54 to a new Maximum Fee Amount of $4,192,879.00.

2. Section 4: Fees and Payment of the Agreement is hereby further amended as follows:

The following sentence in Section 4 of the Agreement is hereby deleted: “The “true-up” must include labor costs (by category and employee) detailing the time worked by each class of employee with separate totals for overtime and benefit costs, food total costs, miscellaneous total supply costs, other permitted costs (per Exhibit B) and the percentage of the agency fee.”
The sentence above shall be replaced with the following: “The ‘true-ups’ shall specify the actual costs and shall specify the direct and indirect costs Consultant is billing for using a form substantially similar to the sample attached as Exhibit E, the sample Statement of Revenues and Expenditures. Indirect costs shall not exceed those as authorized by the Fee Schedule. Should City request, Consultant will provide the underlying documentation to support the charges. Such documentation, if requested, shall detail the time worked by each class of employee on each task and the expenses incurred for which billing is made.”

8.4 First Amendment to Professional Services Agreement with People First for City Overlook June 2026 Page 2

3. Section 7: Term and Schedule of the Agreement is hereby amended to extend the term of the Agreement by one (1) year with the term of the Agreement now terminating on June 30, 2027 instead of June 30, 2026.

4. Exhibit B: Fee Schedule of the Agreement is hereby amended to replace the prior budget amount in Exhibit B of the Agreement with the amended Fee Schedule as specified in Exhibit B-1, attached hereto and incorporated herein.

5. The Agreement is hereby amended to add Exhibit E: Sample Statement of Revenues and Expenditures, as provide in Exhibit E-1, attached hereto and incorporated herein.

6. Except as amended by this First Amendment, all other applicable terms and conditions of the Agreement and attachments shall remain in full force and effect. The terms of this First Amendment shall control if any conflict exists.

7. Each party acknowledges that it has reviewed this First Amendment 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 First Amendment.

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

9. The Parties may execute this First Amendment 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.

10. The signatories to this First Amendment warrant and represent that each is authorized to execute this First Amendment and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this First Amendment.
[SIGNATURES ON THE FOLLOWING PAGE]

8.5 First Amendment to Professional Services Agreement with People First for City Overlook June 2026 Page 3
IN WITNESS WHEREOF, the City and the Consultant have executed this First Amendment effective as of the Effective Date first written above.

Approved As To Form:

By: ______________________________ Date: ___________
Office of the City Attorney

CONSULTANT
By: ______________________________ Date: __________________ Printed: __________________________ Title: _________________________ By: ______________________________ Date: __________________ Printed: __________________________ Title: __________________ a. Corporation – 2 officer signatures required (one from each group, unless person signing holds officer positions in both Group 1 and 2):

Group 1: Chief Executive Officer, Chairman of the Board, President, or Vice President Group 2: Secretary, Assistant Secretary, Chief Financial Officer, Treasurer, Assistant Treasurer b. Partnership - Signature of General Partner, or signature of partner who is authorized to execute documents per the Certificate of Partnership. If authorized partner is a corporation, follow Corporation signature requirement. c. LLC- For a member-managed LLC, signature of any member. For a manager-managed LLC, signature of the manager. If the LLC has corporate officer designations, follow Corporation signature requirement.

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

8.6 First Amendment to Professional Services Agreement with People First for City Overlook June 2026 Page 4
EXHIBIT B-1: FEE SCHEDULE

8.7 First Amendment to Professional Services Agreement with People First for City Overlook June 2026 Page 5
Quantity Price/Unit Total
Blankets 155 20.00 3,100.00
Hygiene 49275 1.00 13,000.00
Breakfast 12 3,500.00 42,000.00
Lunch & Dinner 12 55,445.85 565,350.20
Emergency Taxi Transport 4,000.00
Cleaning/Disinfecting/PPE 1,500.00
Kitchen Fee 365 50.00 18,250.00
Office Supplies 12 150.00 1,800.00
Emergency Clothing 150 25.00 1,500.00
Staff Training 30,000.00
Staff Shirts 120 25.00 3,000.00
Staff Hats 60 20.00 1,200.00
Laundry per month 12 8,000.00 96,000.00
Technology for intakes 6,000.00
Security Cameras 5,000.00
Supplies (Tents, cots,
bins) 74,400.00
Employee Cell Phones 13,000.00
Pest Control 4,500.00
Office Rent 1,743.47 [2]
Retirement Flat cost 1,412.52 [3]
Additional Insurance 58,518.48
Facilities Subtotal 945,274.67
Misc. Supplies
Contingency 15,225.83
Facilities Total 960,500.50
Discretionary Fund
15,343.5
7 Subtotal 3,797,273.65
Agency Fee 395,605.90
FY 2027 Grand Total 4,192,879.55
Monthly Total 349,406.63
Per active household 31,058.37
Per active household per
day 11,487.34
Active Households at
one time 135

8.8 First Amendment to Professional Services Agreement with People First for City Overlook June 2026 Page 6

8.9 First Amendment to Professional Services Agreement with People First for City Overlook June 2026 Page 7
EXHIBIT E-1

SAMPLE STATEMENT OF REVENUES AND EXPENDITURES

8.10 First Amendment to Professional Services Agreement with People First Safe Parking June 2026 Page 1

FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH PEOPLE FIRST OF SANTA CRUZ COUNTY
THIS FIRST AMENDMENT (“First Amendment”), effective as of _________, (the “Effective Date”) to the PROFESSIONAL SERVICES AGREEMENT dated July 1, 2025, is made by and between the CITY OF SANTA CRUZ (“City”) and People First of Santa Cruz County (“Consultant”). City and Consultant may be referred to individually as a “Party” and collectively, as the “Parties.”

RECITALS
WHEREAS, City and Consultant have previously entered into that certain Professional Services Agreement for Operation and Management of the Tier 3 Safe Parking Program dated July 1, 2025 (the “Agreement”), incorporated herein by this reference; and WHEREAS, City and Consultant desire to enter into this First Amendment to the Agreement to extend the term of the Agreement and to amend Section 4: Fees and Payment and Exhibit B: Fee Schedule, as specified herein.

AGREEMENT
NOW, THEREFORE, it is agreed between the Parties to incorporate the above Recitals hereto, and that the Parties agree to the following:

1. Section 4 of the Agreement is hereby amended to decrease the total fee charged for the Scope of Work set forth in Exhibit A from $489.732.00 to a new not to exceed amount of $203,257.00.

2. Section 4: Fees and Payment, of the Agreement is hereby further amended as follows:

The following sentence in Section 4 of the Agreement is deleted: “Invoices shall detail the time worked by each class of employee on each task and the expenses incurred for which billing is made.”
The sentence above shall be replaced with: “Invoices shall specify the actual costs and shall specify the direct and indirect costs Consultant is billing for using a form substantially similar to the sample attached as Exhibit E, the sample Statement of Revenues and Expenditures. Indirect costs shall not exceed those as authorized by the Fee Schedule. Should City request, Consultant will provide the underlying documentation to support the charges.

Such documentation, if requested, shall detail the time worked by each class of employee on each task and the expenses incurred for which billing is made.”

8.11 First Amendment to Professional Services Agreement with People First Safe Parking June 2026 Page 2

3. Section 7 of the Agreement is hereby amended to extend the term of the Agreement by six (6) months with the term of the Agreement now terminating on December 31, 2026 instead of June 30, 2026.

4. Exhibit B: Fee Schedule of the Agreement is hereby amended to replace the prior budget amount in Exhibit B of the Agreement with the amended Fee Schedule as specified in Exhibit B-1, attached hereto and incorporated herein.

5. The Agreement is hereby amended to add Exhibit E: Sample Statement of Revenues and Expenditures, as provided in Exhibit E-1 attached hereto and incorporated herein.

6. Except as amended by this First Amendment, all other applicable terms and conditions of the Agreement and attachments shall remain in full force and effect. The terms of this First Amendment shall control if any conflict exists.

7. Each party acknowledges that it has reviewed this First Amendment 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 First Amendment.

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

9. The Parties may execute this First Amendment 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.

10. The signatories to this First Amendment warrant and represent that each is authorized to execute this First Amendment and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this First Amendment.
[SIGNATURES ON THE FOLLOWING PAGE]

8.12 First Amendment to Professional Services Agreement with People First Safe Parking June 2026 Page 3
IN WITNESS WHEREOF, the City and the Consultant have executed this First Amendment effective as of the Effective Date first written above.

Approved As To Form:

By: ______________________________ Date: ___________
Office of the City Attorney

CONSULTANT
By: ______________________________ Date: __________________ Printed: __________________________ Title: _________________________ By: ______________________________ Date: __________________ Printed: __________________________ Title: __________________ a. Corporation – 2 officer signatures required (one from each group, unless person signing holds officer positions in both Group 1 and 2):

Group 1: Chief Executive Officer, Chairman of the Board, President, or Vice President Group 2: Secretary, Assistant Secretary, Chief Financial Officer, Treasurer, Assistant Treasurer b. Partnership - Signature of General Partner, or signature of partner who is authorized to execute documents per the Certificate of Partnership. If authorized partner is a corporation, follow Corporation signature requirement. c. LLC- For a member-managed LLC, signature of any member. For a manager-managed LLC, signature of the manager. If the LLC has corporate officer designations, follow Corporation signature requirement.

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

8.13 First Amendment to Professional Services Agreement with People First Safe Parking June 2026 Page 4
EXHIBIT B-1

8.14 First Amendment to Professional Services Agreement with People First Safe Parking June 2026 Page 5
EXHIBIT E-1

SAMPLE STATEMENT OF REVENUES AND EXPENDITURES

8.15 Brittany Inclan
From: Judi Grunstra <[email protected]>
Sent: Sunday, June 21, 2026 6:09 PM
To: City Council
Subject: Consent agenda items 7, 8 and 9
Dear Mayor and Council: I have a few questions.

Item 7: Overnight Parking $203K from General Fund
Performance Measurement table
20% of program participants will exit homelessness to a permanent housing destination within 12 months. (Only 20%????)
60% of program participants will have become housing ready within 12 months. (What about the other 40%?)
70% of program participants will have a documented instance of overcoming a housing barrier within 4 months of entering the program.

What does "housing ready" mean? Agreeing to comply with requirements of sobriety, pay a share of rent from disability checks, etc.?
What is an instance of overcoming a "housing barrier"? (landlord not wanting to rent to them? Failure to pay rent? Eviction?)
Item 8: Can someone explain this seeming discrepancy?
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: For FY 2027, funding to support the operations and management of the City Overlook will come from the General Fund, Safe Sleeping and Shelter – Armory (p102202), in the amount of $4,192,879. The funding request to support this first amendment to the professional services agreement with People First of Santa Cruz County was included in the FY 2027 budget for consideration by the City Council.

Item 7: Overnight Parking $203K from General Fund
Performance Measurement table
20% of program participants will exit homelessness to a permanent housing destination within 12 months. 60% of program participants will have become housing ready within 12 months. 70% of program participants will have a documented instance of overcoming a housing barrier within 4 months of entering the program.

Item 9: Downtown Outreach Worker - This money does come from the General Fund ($539K)

8.16 These three items total approximately $5 million. Is this really what taxpayers want their tax dollars spent on, year after year after year? I hope People First achieves results.

Judi Grunstra

8.17 City Council

AGENDA REPORT
DATE: 06/04/2026
AGENDA OF: 06/23/2026
DEPARTMENT: City Manager
SUBJECT: Second Amendment to the Professional Services Agreement for Downtown Outreach Worker Program (CM)
LOCATION: District 4
RECOMMENDATION: Motion to authorize the City Manager to execute the Second Amendment to the Professional Services Agreement, in a form approved by the City Attorney, with Encompass Community Services for the Downtown Outreach Worker Program in the amount of $539,016. The Director of Homelessness Response and Community Programs is authorized to approve and execute change orders within the approved budget.

BACKGROUND: The purpose of the Downtown Outreach Worker (DOW) program is to have outreach workers operating in the downtown area to provide services to people in need of social services, outreach, evaluation, and linkage to health agencies and other organizations that can be used to improve overall quality of life and to reduce the potential need for emergency room visits, inpatient psychiatric hospitalization and/or the criminal justice system. In particular, DOW outreach workers seek to identify the public benefits and service needs of people experiencing homelessness and other at-risk individuals who congregate in the downtown area. This work is conducted through direct client contact, as well as interface with law enforcement and the business community. Once a need is identified, resources are offered and, when necessary, the outreach person will bring the case to a multi-disciplinary team to develop realistic short- and long-range solutions to address the unique needs and problems of each client.

The City of Santa Cruz has an ongoing need for this type of onsite outreach support in the downtown area. From 1994 through 2012, the City’s Redevelopment Agency contracted with various partners, including Encompass, to provide these services. After the Agency’s dissolution in 2012, the City continued to support this service in collaboration with the County of Santa Cruz, which served as the administrative entity for the DOW contract annually through FY 2025.

DISCUSSION: The City and the County have jointly provided consistent financial support for the DOW services for many years and anticipated continuing joint support of the DOW program in FY 2026. However, due to significant health and human services funding reductions at the federal and state levels, the County of Santa Cruz made the difficult decision late in the budget process to discontinue supporting the DOW program in FY 2026. Despite the County’s decision, the community need addressed by DOW remains critically important and impactful to the City.

9.1 On August 12, 2025, the City Council passed a motion authorizing the City to enter into an initial 6-month agreement with Encompass Community Services, utilizing $175,928 in funds that were already budgeted, to enable the DOW program to continue to provide the same level and scope of service that had been in place for the past year with the addition of metrics on program performance included in the new contract scope. This scope supported three full-time outreach workers who provided service in the downtown area five days-a-week (Monday-Friday). At the same City Council meeting, staff was further directed to return to Council with potential options for consideration that would increase the downtown coverage into the weekends and/or evening hours.

On December 9, 2025, the City Council passed a motion authorizing the City to amend the existing agreement with Encompass for the DOW Program by extending the term through June 30, 2026, and increasing the amount of the contract by $202,948, for a total not to exceed $378,876, to enable the DOW program to continue to provide the same level and scope of service that had been in place for the FY 2026 year with the addition of metrics on program performance included in the new contract scope. This scope supported three full-time outreach workers who provided service in the downtown area five days-a-week (Monday-Friday). At the same City Council meeting, staff was further directed to return to Council with potential options for consideration that would increase the downtown coverage into the weekends and/or evening hours.

Encompass and City staff mutually agreed to pilot test weekend and evening service to better understand what is needed during those shifts in order to work through some anticipated operational challenges. This pilot testing occurred in March 2026 and provided a foundation of operational experience and time to plan implementing expanded services for FY 2027. Staff recommends approving the second amendment to the professional services agreement with Encompass to operate the DOW program with Encompass and increasing the program operations from 9:00 am to 5:30 pm Monday-Friday to 8:00 am to 6:30 pm Monday-Sunday. The proposed second amendment to the professional services agreement with Encompass for the 12-month period is $539,016.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed Council action is not a “project” under CEQA because it does not have the potential to cause a physical change in the environment directly or indirectly.

HEALTH IN ALL POLICIES (HiAP): HiAP is a collaborative framework designed to improve population health by integrating health considerations into decision-making processes across sectors and policy areas. HiAP is built on three core pillars: equity, public health, and sustainability. Its primary goal is to ensure that policymakers fully consider the health, equity, and sustainability impacts of various policy options during development. The proposed program aligns HiAP principles by promoting public health and equity, ensuring that lower-income individuals have access to outreach support. By prioritizing the welfare of vulnerable populations, this initiative reinforces commitment to a healthier, more resilient community.

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: No

9.2 FISCAL IMPACT DESCRIPTION: For FY 2027, funding to support the DOW program will come from the General Fund, Program Services (101-10-00-6103-52152), in the amount of $539,016. The funding request to support this second amendment with Encompass was included in the approved FY 2027 budget.

Prepared By:

Larry Imwalle
Director Homelessness
Response and Community
Programs
Submitted By:

Bonnie Lipscomb
Deputy City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. SECOND AMENDMENT TO PSA WITH ENCOMPASS.PDF

2. FIRST AMENDMENT TO PSA WITH ENCOMPASS.PDF

3. PROFESSIONAL SERVICES AGREEMENT DATED JULY 1, 2025.PDF

9.3 Second Amendment to Professional Services Agreement with Encompass Community Services June 2026 Page 1

SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH Encompass Community Services
THIS SECOND AMENDMENT (“Second Amendment”), effective as of _________, (the “Effective Date”) to the PROFESSIONAL SERVICES AGREEMENT dated July 1, 2025, is made by and between the CITY OF SANTA CRUZ (“City”) and Encompass Community Services (“Consultant”). City and Consultant may be referred to individually as a “Party” and collectively, as the “Parties.”

RECITALS
WHEREAS, City and Consultant have previously entered into that certain Professional Services Agreement for City of Santa Cruz Downtown Outreach Worker Program dated July 1, 2025 (the “Agreement”), incorporated herein by this reference; and WHEREAS, City and Consultant previously entered into a First Amendment to the Agreement on December 31, 2025 to extend the term of the Agreement and to amend Exhibit B: Fee Schedule of the Agreement and Section 4 of the Agreement;
WHEREAS, City and Consultant desire to enter into this Second Amendment to the Agreement to extend the term of the Agreement and to increase the budget and amend Exhibit B: Fee Schedule of the Agreement, as specified herein.

AGREEMENT
NOW, THEREFORE, it is agreed between the Parties to incorporate the above Recitals hereto, and that the Parties agree to the following:

1. Section 4: Fees and Payment of the Agreement is hereby amended to increase the total fee charged for the Scope of Work set forth in Exhibit A from $378,876 to a new not to exceed budget of $539,016.

2. Section 7: Term and Schedule of the Agreement is hereby amended to extend the term of the Agreement for one (1) year and change the termination date from June 30, 2026 to June 30, 2027.

3. Exhibit B: Fee Schedule of the Agreement is hereby amended to revise the prior budget amount and to revise the Fee Schedule for the 7-day outreach service plan for DOW from July 1, 2026 through June 30, 2027, as provided in the revised Fee Schedule, which is attached hereto as Exhibit B-2 and incorporated herein. The new not to exceed budget amount is in the amount of $539,016. This new amount is within the council approved project budget.

4. Except as amended by this Second Amendment, all other applicable terms and conditions of the original Agreement and attachments, and other prior amendment, shall remain in full force and effect.

The terms of this Second Amendment shall control if any conflict exists.

5. Each party acknowledges that it has reviewed this Second Amendment 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 Second Amendment.

9.4 Second Amendment to Professional Services Agreement with Encompass Community Services June 2026 Page 2

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

7. The Parties may execute this Second Amendment 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.

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

IN WITNESS WHEREOF, the City and the Consultant have executed this Second Amendment effective as of the Effective Date written above.

Approved As To Form:

By: _____________________________ Date: _________________ Office of the City Attorney

CONSULTANT
By: _____________________________ Date: __________________ Printed: _________________________ Title: _________________________ By: _____________________________ Date: __________________ Printed: _________________________ Title: _ _________________ a. Corporation – 2 officer signatures required (one from each group, unless person signing holds officer positions in both Group 1 and 2):

Group 1: Chief Executive Officer, Chairman of the Board, President, or Vice President Group 2: Secretary, Assistant Secretary, Chief Financial Officer, Treasurer, Assistant Treasurer b. Partnership - Signature of General Partner, or signature of partner who is authorized to execute documents per the Certificate of Partnership. If authorized partner is a corporation, follow Corporation signature requirement. c. LLC- For a member-managed LLC, signature of any member. For a manager-managed LLC, signature of the manager. If the LLC has corporate officer designations, follow Corporation signature requirement.

CITY OF SANTA CRUZ
By: _____________________________ Date: __________________ Matt Huffaker, City Manager
6/4/2026

9.5 Second Amendment to Professional Services Agreement with Encompass Community Services June 2026 Page 3
EXHIBIT B-2
The total amount payable under this agreement shall not exceed $539,016 which includes $12,500 in Homeward Bound funds. The total cost of the 7-day outreach service plan for DOW from July 1, 2026, through June 30, 2027, is anticipated to be $526,516. Encompass will directly administer Homeward Bound funds ($12,500) to support people who have housing solutions with family and/or friends outside of Santa Cruz County.

Program Operations- 8-6:30 M-Sunday
Services 7 Day model Notes
Paired outreach 4 person team
7 days/10-hour
shifts/160 hours
expands paired street outreach
to 125 hours of coverage per
week. Provides 20 hours of
weekend coverage.

Library Drop-In M & F 1-3 p.m. could expand if needed
Monthly Unduplicated client contacts 75 Increased by 15 Intensive Case Management caseload 15-20 Increased by 5 Community Events/De-escalation
Trainings 4 events annually
Allows for greater manager
participation in community
events, trainings average 4 x
annually.

9.6 First Amendment to Professional Services Agreement for Downtown Outreach Worker Program December 2025 Page 1

FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH

ENCOMPASS COMMUNITY SERVICES
THIS FIRST AMENDMENT (“First Amendment”), effective as of December 31, 2025, (“effective date”) to the PROFESSIONAL SERVICES AGREEMENT dated July 1, 2025, is made by and between the CITY OF SANTA CRUZ (“City”) Encompass Community Services (“Consultant” or “Encompass”). City and Consultant may be referred to individually as a “Party” and collectively, as the “Parties.”

RECITALS
WHEREAS, on August 12, 2025, City Council authorized the City Manager to execute a contract for services for the Downtown Outwork Worker Program and authorized the Director of Homeless Response and Community Programs to execute future contract amendments within the approved project budget;
WHEREAS, City and Consultant have previously entered into that certain Professional Services Agreement (“Agreement”) dated July 1, 2025, incorporated herein by this reference; and WHEREAS, on December 9, 2025, City Council authorized the City Manager to execute an Amendment to the Agreement to increase the budget and change the term and authorized the Director of Homeless Response and Community Programs to execute this First Amendment future contract amendments within the approved project budget;
WHEREAS, City and Consultant desire to enter into this First Amendment to the Agreement to extend the term, increase the budget to cover the extended term, and change the method for submitting invoices, as specified herein.

AGREEMENT
NOW, THEREFORE, it is agreed between the Parties to incorporate the above Recitals hereto, and that the Parties agree to the following:

1. Section 4, Fees and Payment, of the Agreement is hereby amended to change the not to exceed budget from $175,928 and increase it by $202,948, making the new not to exceed budget $378,876 which includes $12,500 in Homeward Bound funds to cover the extended term of the Agreement. This new amount is within the council approved project budget.

2. Section 4, Fees and Payment, of the Agreement is hereby further amended as follows:

The following sentence is removed: “Invoices shall detail the time worked by each class of employee on each task and the expenses incurred for which billing is made.” Docusign Envelope ID: F2DEDFEC-4458-4431-A5EE-8F0BCBA6A221

9.7 First Amendment to Professional Services Agreement for Downtown Outreach Worker Program December 2025 Page 2
It is replaced with: “Invoices shall specify the actual costs and shall specify the direct and indirect costs Consultant is billing for using a form substantially similar to the sample attached as Exhibit E, the sample Statement of Revenues and Expenditures. Indirect costs shall not exceed those as authorized by the Fee Schedule. Should City request, Consultant will provide the underlying documentation to support the charges. Such documentation, if requested, shall detail the time worked by each class of employee on each task and the expenses incurred for which billing is made.”

3. Section 7, Term, of the Agreement, is hereby amended to change the termination date from December 31, 2025, to June 30, 2026, to make the total term of the contract one year.

4. Exhibit B: Fee Schedule of the Agreement is hereby amended to revises the prior budget amount in Exhibit B of the Agreement with the amended Fee Schedule, which included the work for the extended time period, January 1, 2026, to June 30, 2026. which is attached hereto as Exhibit B-1 and incorporated herein.

5. Except as amended by this First Amendment, all other applicable terms and conditions of the original Agreement and attachments shall remain in full force and effect. The terms of this First Amendment shall control if any conflict exists.

6. Each party acknowledges that it has reviewed this First Amendment 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 First Amendment.

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

8. The Parties may execute this First Amendment 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.

9. The signatories to this First Amendment warrant and represent that each is authorized to execute this First Amendment and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this First Amendment.
[SIGNATURES ON FOLLOWING PAGE]
Docusign Envelope ID: F2DEDFEC-4458-4431-A5EE-8F0BCBA6A221

9.8 First Amendment to Professional Services Agreement for Downtown Outreach Worker Program December 2025 Page 3
IN WITNESS WHEREOF, the City and the Consultant have executed this First Amendment effective as of the date first written above.

Approved As To Form:

By: _____________________________ Date: ___________
Office of the City Attorney, Ashley Wheelock

CONSULTANT
By: _____________________________ Date: __________________ Printed: _________________________ Title: _________________________ By: _____________________________ Date: __________________ Printed: _________________________ Title: __________________

CITY OF SANTA CRUZ
By: _____________________________ Date: __________________ Matt Huffaker, City Manager
March 2, 2026
Docusign Envelope ID: F2DEDFEC-4458-4431-A5EE-8F0BCBA6A221 CEO
3/5/2026
Kim Morrison
3/6/2026

9.9 First Amendment to Professional Services Agreement for Downtown Outreach Worker Program December 2025 Page 4
EXHIBIT B-1
The total amount payable under this agreement shall not exceed $378,876, which includes $12,500 in Homeward Bound funds. The total cost of the 5-day outreach service plan for DOW from July 1, 2025, through June 30, 2026, is anticipated to be $366,375.92. The City had an agreement with Encompass Community Services for July 1, 2025 through December 31, 2025 in the amount of $175,928. This First Amendment covers the balance ($190,448) for the extended term, and, in addition, Encompass will directly administer Homeward Bound funds ($12,500) to support people who have housing solutions with family and/or friends outside of Santa Cruz County.

Docusign Envelope ID: F2DEDFEC-4458-4431-A5EE-8F0BCBA6A221

9.10 First Amendment to Professional Services Agreement for Downtown Outreach Worker Program December 2025 Page 5
Exhibit E: Sample Statement of Revenues and Expenditures Current Period Current Year
Actual Actual
Revenue
City Cost Reimbursement
Total Revenue
Total Revenue
Expenses
Direct Expenses
Personnel
Regular Wages
On call Wages
Employee Benefits
Workers Compensation
Payroll Taxes
Unemployment Insurance
Total Personal:

Operating
Supplies
Phone-Land
Phone-Mobile
Internet
Postage And Shipping
Rent ( company not client)
Storage Rent
Util-Electric
Util-Water/Sewer
Util-Gas
Util-Garbage/Shredding
Facility Janitorial Contracts
Facility Repair/Supplies
Facility License & Permit
Equipment Rental
Printing/Copying/Publishing
Books & Subscriptions
Staff Travel
Co Vehicle-Gas/Mtce/License
Client Food
Therapeutic Behavioral Incentives
Client Rec/Education
Staff Recruitment & Employment Cost
Staff Development
Client Outreach
Insurance (Prop & Liability)
Insurance (Vehicle)
Computer/Cell/ Accessories/Soft ...

Real Estate Tax
Total Operating
Total Direct Expenses
Indirect Expenses
Indirect Rate
Total Indirect
Total Expenses
Balance Remaining in Contract
Docusign Envelope ID: F2DEDFEC-4458-4431-A5EE-8F0BCBA6A221

9.11 City of Santa Cruz
Professional Services Agreement for
City of Santa Cruz Downtown Outreach Worker Program with Encompass Community Services
July 2025 (Form Rev.03/25) Page 1
Professional Services Agreement With

CITY OF SANTA CRUZ DOWNTOWN OUTREACH WORKER PROGRAM
with ENCOMPASS COMMUNITY SERVICES
THIS AGREEMENT for professional services is made by and between the City of Santa Cruz (“City”) and Encompass Community Services (“Encompass” or “Consultant”), a not-for-profit corporation, (each is referred to individually as a “Party” and collectively, as the “Parties”) as of July 1, 2025 (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 work 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 proper manner, in accordance with the requirements of this Agreement.

Consultant shall not undertake any work beyond the Scope of Work set forth in Exhibit A unless such additional work is approved in advance and in writing by City. The cost of such additional work shall be reimbursed to Consultant by City on the same basis as provided for in Section 4.

If, in performing the work, 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.

Consultant shall meet with Larry Imwalle, Director Homelessness Response & Community Programs, hereinafter called "Director", or other designated and authorized City personnel, or third parties as necessary, on all matters connected with carrying out of Consultant’s services described in Exhibit A. Such meetings shall be held at the request of either Party. Review and City approval of completed work shall be obtained monthly, or at other intervals as may be mutually agreed upon during this Agreement. Review, approval, or acceptance of Consultant’s work by City or others 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 necessary data and information in the City's possession 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 staff person to serve as his or her representative. The work in progress 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 delayed. If the work is not acceptable, City will inform Consultant of the changes or revisions necessary to secure approval.

Docusign Envelope ID: AF3BBBFC-EB61-44B4-B1B0-24D946D38F88

9.12 City of Santa Cruz
Professional Services Agreement for
City of Santa Cruz Downtown Outreach Worker Program with Encompass Community Services
July 2025 (Form Rev.03/25) Page 2
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 and in accordance 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.

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 exceed the budget of $175,928.00 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. 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 an authorized representative of Consultant (if Consultant is an entity):
“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 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
The term of this Agreement shall be on the effective date of this Agreement and terminating on December 31, 2025.

At the option of the City, this Agreement may be renewed annually under the same contractual terms and conditions by letter agreement for up to five additional years.

Docusign Envelope ID: AF3BBBFC-EB61-44B4-B1B0-24D946D38F88

9.13 City of Santa Cruz
Professional Services Agreement for
City of Santa Cruz Downtown Outreach Worker Program with Encompass Community Services
July 2025 (Form Rev.03/25) Page 3
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 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 Docusign Envelope ID: AF3BBBFC-EB61-44B4-B1B0-24D946D38F88

9.14 City of Santa Cruz
Professional Services Agreement for
City of Santa Cruz Downtown Outreach Worker Program with Encompass Community Services
July 2025 (Form Rev.03/25) Page 4
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 extentsuch 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 http://www.cityofsantacruz.com/home/showdocument?id=59192.

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 itsterms, as well asthe rights and obligations of Consultant and theCity.

SECTION 13: AMENDMENTS
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.

Docusign Envelope ID: AF3BBBFC-EB61-44B4-B1B0-24D946D38F88

9.15 City of Santa Cruz
Professional Services Agreement for
City of Santa Cruz Downtown Outreach Worker Program with Encompass Community Services
July 2025 (Form Rev.03/25) Page 5
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 orsubconsultants, 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.

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.

Docusign Envelope ID: AF3BBBFC-EB61-44B4-B1B0-24D946D38F88

9.16 City of Santa Cruz
Professional Services Agreement for
City of Santa Cruz Downtown Outreach Worker Program with Encompass Community Services
July 2025 (Form Rev.03/25) Page 6

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’sfinal 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 rightsin 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 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, Consultantshall 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.

Docusign Envelope ID: AF3BBBFC-EB61-44B4-B1B0-24D946D38F88

9.17 City of Santa Cruz
Professional Services Agreement for
City of Santa Cruz Downtown Outreach Worker Program with Encompass Community Services
July 2025 (Form Rev.03/25) Page 7
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 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 the current City of Santa Docusign Envelope ID: AF3BBBFC-EB61-44B4-B1B0-24D946D38F88

9.18 City of Santa Cruz
Professional Services Agreement for
City of Santa Cruz Downtown Outreach Worker Program with Encompass Community Services
July 2025 (Form Rev.03/25) Page 8
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 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 Docusign Envelope ID: AF3BBBFC-EB61-44B4-B1B0-24D946D38F88

9.19 City of Santa Cruz
Professional Services Agreement for
City of Santa Cruz Downtown Outreach Worker Program with Encompass Community Services
July 2025 (Form Rev.03/25) Page 9
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.cityofsantacruz.com/government/city-departments/public-works/stormwater/best-managementpractices

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.

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 Docusign Envelope ID: AF3BBBFC-EB61-44B4-B1B0-24D946D38F88

9.20 City of Santa Cruz
Professional Services Agreement for
City of Santa Cruz Downtown Outreach Worker Program with Encompass Community Services
July 2025 (Form Rev.03/25) Page 10
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:

City Manager’s Office
Larry Imwalle
809 Center St., Rm 10
Santa Cruz, CA 95062
[email protected]
831-420-5405
To CONSULTANT:

Encompass Community Services
Shellee Stopera
380 Encinal St, Suite 200
Santa Cruz, CA 95060
[email protected]
831-469-1700
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.

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]
Docusign Envelope ID: AF3BBBFC-EB61-44B4-B1B0-24D946D38F88

9.21 City of Santa Cruz
Professional Services Agreement for
City of Santa Cruz Downtown Outreach Worker Program with Encompass Community Services
July 2025 (Form Rev.03/25) Page 11
Approved As To Form:

By: _____________________________ Date: __________________ Office of the City Attorney, Ashley Wheelock

CITY OF SANTA CRUZ
By: _____________________________ Date: _________________ Matt Huffaker
City Manager

CONSULTANT
By: _____________________________ Date: __________________ Shellee Stopera
Chief Executive Officer, Encompass Community Services
Sept 8, 2025
By: _____________________________ Date: __________________ Kim Morrison
Chief Financial Officer, Encompass Community Services
Docusign Envelope ID: AF3BBBFC-EB61-44B4-B1B0-24D946D38F88 9/9/2025
9/9/2025

9.22 City of Santa Cruz
Professional Services Agreement for
City of Santa Cruz Downtown Outreach Worker Program with Encompass Community Services
July 2025 (Form Rev.03/25) Page 12
EXHIBIT A: SCOPE OF WORK
Downtown Outreach Worker (DOW) Program
The Downtown Outreach Worker (DOW) Program provides homeless outreach and case management services in the downtown area of the City of Santa Cruz. The program has a dual purpose:

1. Supporting individuals experiencing homelessness through connection to services and case management.

2. Assisting downtown employees, businesses, and patrons by addressing quality-of-life concerns.

Program Functions
• DOWs engage directly with unhoused and at-risk individuals in the downtown area, identifying their needs through client contact, collaboration with law enforcements, and communication with the business community.
• When needs are identified, DOWs provide referrals, immediate resources, and when appropriate bring cases to a multi-disciplinary team to create short- and long-term solutions. • DOWs deliver intensive, targeted case management services with a focus on treatment, recovery, and stabilization.
• Participation in homeless service coordination team meetings ensures consistency and collaboration across providers.
• Services include outreach, evaluation, and linkage to health agencies, housing resources, and social service providers with the goal of reducing reliance on emergency departments, inpatient psychiatric hospitalization, and/or the criminal justice system.

Partnership with Businesses
A central feature of the program is strengthening the partnership between social services and the downtown business community. This collaboration promotes understanding of challenges, identifies potential solutions, and highlights both existing system resources and service gaps.

Evaluation and Reporting
The Contractor shall provide regular evaluations to assess program effectiveness and efficiency, as well as submit monthly service and contact reports.

Area of Focus

1. Integrated Behavioral Health, Adult
Services, and Health & Housing

1.1 Downtown Outreach Worker (DOW)
Access
Will outreach a minimum of sixty 60 unduplicated individuals per month. CONTRACTOR will report total number of
unduplicated individuals to COUNTY.

Referral Outputs 1,000 service referrals annually.

Care Coordination 75% of individuals will receive housing/shelter resources.

Targeted Case Management Number of individuals who receive targeted case management. a. 80% of the case managed individuals will be linked with housing/shelter resources.
b. 80% of individual with a self-identified need for BH services (MH and/or SUD) will receive resource coordination and linkage to services.
c. 65% of the case managed individuals are enrolled with MediCal benefits.

Docusign Envelope ID: AF3BBBFC-EB61-44B4-B1B0-24D946D38F88

9.23 City of Santa Cruz
Professional Services Agreement for
City of Santa Cruz Downtown Outreach Worker Program with Encompass Community Services
July 2025 (Form Rev.03/25) Page 13
d. 65% of case managed individuals are established with a medical home or linked a medical alternative including mobile medical or HPHP.

Final Report – Submitted within thirty (30) calendar days of contract completion, including:
o Total activity and participant data.
o Outcomes achieved compared to program goals.
o Recommendations for program improvement or continuation.

Docusign Envelope ID: AF3BBBFC-EB61-44B4-B1B0-24D946D38F88

9.24 City of Santa Cruz
Professional Services Agreement for
City of Santa Cruz Downtown Outreach Worker Program with Encompass Community Services
July 2025 (Form Rev.03/25) Page 14
EXHIBIT B: FEE SCHEDULE
The total amount payable under this agreement shall not exceed $175,928.00. 5 Day Street Outreach DOW 25-26 (Paired Outreach)
Salaries and benefits prorated for 6 month contract term FTE Hourly
Wage
Annual
Salary
Annual
Benefits
Manager 5, Director $3,164 0.04 $60.84 $5,062 $1,266
Case Manager $36,823 1.00 $28.33 $58,916 $14,729
Case Manager $36,823 1.00 $28.33 $58,916 $14,729
Case Manager $36,823 1.00 $28.33 $58,916 $14,729
Manager 3, Program Manager $17,219 0.31 $42.73 $27,550.89 $6,888 Client Food $2,600.00
Client Clothing $510.00
Client Transportation $1,500.00
Occupancy $8,056
Equipment & Supplies $2,475
Staff Development $560.00
Staff Travel $1,600
Indirect $21,244
Total $175,928
Docusign Envelope ID: AF3BBBFC-EB61-44B4-B1B0-24D946D38F88

9.25 City of Santa Cruz
Professional Services Agreement for
City of Santa Cruz Downtown Outreach Worker Program with Encompass Community Services
July 2025 (Form Rev.03/25) Page 15
EXHIBIT C: WORK SCHEDULE
Consultant shall operate a five day per week (paired outreach) Downtown Outreach Worker Program from July 1, 2025 through December 31, 2025.

Docusign Envelope ID: AF3BBBFC-EB61-44B4-B1B0-24D946D38F88

9.26 City of Santa Cruz
Professional Services Agreement for
City of Santa Cruz Downtown Outreach Worker Program with Encompass Community Services
July 2025 (Form Rev.03/25) Page 16
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
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): $2,000,000 PER OCCURRENCE; $2,000,000 AGGREGATE Proof of coverage for $2 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.
• SEXUAL ABUSE OR MOLESTATION (SAM) LIABILITY: If the work will include contact with minors, and the CGL policy referenced above is not endorsed to include affirmative coverage for sexual abuse or molestation, Contractor shall obtain and maintain a policy covering Sexual Abuse and Molestation with a limit no less than $1,000,000 per occurrence or claim. • 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.

Docusign Envelope ID: AF3BBBFC-EB61-44B4-B1B0-24D946D38F88

9.27 City of Santa Cruz
Professional Services Agreement for
City of Santa Cruz Downtown Outreach Worker Program with Encompass Community Services
July 2025 (Form Rev.03/25) Page 17
• 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
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 claimsrelated 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 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 noncontributory, 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.
• 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 Docusign Envelope ID: AF3BBBFC-EB61-44B4-B1B0-24D946D38F88

9.28 City of Santa Cruz
Professional Services Agreement for
City of Santa Cruz Downtown Outreach Worker Program with Encompass Community Services
July 2025 (Form Rev.03/25) Page 18
shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.
• 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 beginning of work 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.

Docusign Envelope ID: AF3BBBFC-EB61-44B4-B1B0-24D946D38F88

9.29 Brittany Inclan
From: Judi Grunstra <[email protected]>
Sent: Sunday, June 21, 2026 6:09 PM
To: City Council
Subject: Consent agenda items 7, 8 and 9
Dear Mayor and Council: I have a few questions.

Item 7: Overnight Parking $203K from General Fund
Performance Measurement table
20% of program participants will exit homelessness to a permanent housing destination within 12 months. (Only 20%????)
60% of program participants will have become housing ready within 12 months. (What about the other 40%?)
70% of program participants will have a documented instance of overcoming a housing barrier within 4 months of entering the program.

What does "housing ready" mean? Agreeing to comply with requirements of sobriety, pay a share of rent from disability checks, etc.?
What is an instance of overcoming a "housing barrier"? (landlord not wanting to rent to them? Failure to pay rent? Eviction?)
Item 8: Can someone explain this seeming discrepancy?
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: For FY 2027, funding to support the operations and management of the City Overlook will come from the General Fund, Safe Sleeping and Shelter – Armory (p102202), in the amount of $4,192,879. The funding request to support this first amendment to the professional services agreement with People First of Santa Cruz County was included in the FY 2027 budget for consideration by the City Council.

Item 7: Overnight Parking $203K from General Fund
Performance Measurement table
20% of program participants will exit homelessness to a permanent housing destination within 12 months. 60% of program participants will have become housing ready within 12 months. 70% of program participants will have a documented instance of overcoming a housing barrier within 4 months of entering the program.

Item 9: Downtown Outreach Worker - This money does come from the General Fund ($539K)

9.30 These three items total approximately $5 million. Is this really what taxpayers want their tax dollars spent on, year after year after year? I hope People First achieves results.

Judi Grunstra

9.31 City Council

AGENDA REPORT
DATE: 06/04/2026
AGENDA OF: 06/23/2026
DEPARTMENT: City Manager
SUBJECT: Professional Services Agreement with the Homeless Garden Project for Pathways to Employment Program Pilot (CM)
LOCATION: Citywide
RECOMMENDATION: Motion to authorize the City Manager to execute a Professional Services Agreement, in a form to be approved by the City Attorney, with the Homeless Garden Project for the Pathways to Employment Program pilot in the amount of $236,658. The Director of Homelessness Response and Community Programs is authorized to approve and execute change orders within the approved budget.

BACKGROUND: On August 29, 2025, the Downtown Streets Team (DST) announced that the organization would be ceasing operations at all its program sites (14 communities throughout Northern California), including the City of Santa Cruz, effective October 31, 2025. The City had been contracting continuously with DST to provide litter collection, clean-up of open spaces, and other beautification efforts since 2017. In addition to the direct environmental benefits of this clean-up work, the DST program design also supported the City’s homelessness response efforts by providing homeless and at-risk individuals with opportunities to gain valuable employment skills development and case management support as DST team members. In the most recent contract, encompassing the last three fiscal years, the City contracted with DST to support 5 teams conducting litter collection and beautification work across the City including: downtown (including parking garages), San Lorenzo River levee/riverbanks, Main and Cowell beaches, Harvey West neighborhood, and Sycamore Grove. The total cost of this program was approximately $500,000 per year and was funded through a combination of Measure E, refuse, parking, water, and general funds.

DISCUSSION: The dissolution of DST has left a noticeable gap in the City’s efforts to maintain clean public spaces in critical areas, as well as in the City’s programming to support people experiencing homelessness. In late 2025, the Homeless Garden Project reached out to City staff to engage in preliminary discussions about the possibility of starting a new program as a successor to DST’s work in Santa Cruz. The Homeless Garden Project is uniquely suited to implement programming similar to what DST offered given its current programs that provide readiness skill development, case management, and community building amongst people experiencing homelessness. Importantly, the Homeless Garden Project also has a significant history of working with many people who have also been DST participants.

10.1 The Homeless Garden Project is proposing a low-barrier job readiness program that focuses on beautifying the City through street cleaning and operating across multiple sites drawing from experience gained over their 36+ year history. Their approach is to start small with this pilot, learn from experience, and build intentionally on early successes. The program integrates proven methods and best practices from both DST and the Homeless Garden Project. From DST, they draw on strategies that support participants in preparing for work, building self-confidence and self-esteem, and developing a sense of pride through participation. From the Homeless Garden Project, they emphasize cultivating job readiness skills, supporting overall well-being, and fostering community.

The weekly structure of the 16-week program includes 4 days of city beautification, including trash pickup and garden maintenance in public spaces, as well as one day a week (Wednesday) of learning and community building - focused on job skills and general workforce development.

Participants meet with a case manager at least once per week for 30 minutes to one hour. These meetings provide support with employment preparation, connection to state and federal benefits, and tracking progress toward key program milestones throughout the program. Additional support is offered as needed to promote overall stability and well-being.

The pilot program will consist of cohorts of two teams consisting of 5-10 members. There will be three 16-week program cohorts per year. Initially, the team’s beautification and litter removal work will focus in the downtown and levee/riverbank areas 3-days a week, with the flexibility to serve Midtown on the fourth day of the week, and potentially other areas, as needed.

The program goals for the participants include:
 Taking steps in preparing for employment; including resume building, boosting self confidence and self-esteem, and acquiring hard and soft skills–communication, team work, time management, conflict resolution, professionalism  Work as part of a team and build a supportive peer community  Identify and work towards goals with a supportive staff member, including next steps after the 16-week program
 Strengthen relationships with community members and Downtown merchants  Connect to and meet requirements for State and Federal benefits  Document volunteer hours needed for CalFresh
 Build a bridge between Pathway to Work and Homeless Garden Project participants and programs
 Instill a sense of pride and dignity.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed Council action is not a “project” under CEQA because it will not cause a negative change to the physical environment, directly or indirectly.

HEALTH IN ALL POLICIES (HiAP): HiAP is a collaborative framework designed to improve population health by integrating health considerations into decision-making processes across sectors and policy areas. HiAP is built on three core pillars: equity, public health, and sustainability. Its primary goal is to ensure that policymakers fully consider the health, equity, and sustainability impacts of various policy options during development. The proposed program aligns HiAP principles by promoting public health and equity, ensuring that lower-income individuals have access to supportive services and employment skills development. By

10.2 prioritizing the welfare of vulnerable populations, this initiative reinforces commitment to a healthier, more resilient community.

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: There is no new fiscal impact associated with the recommended action at this time. The proposed action recommended by staff uses funds currently budgeted in the City Manager’s Office.

Prepared By:

Larry Imwalle
Director Homelessness
Response and Community
Programs
Submitted By:

Bonnie Lipscomb
Deputy City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. DRAFT PSA WITH HOMELESS GARDEN PROJECT.DOCX

10.3 City of Santa Cruz
July 2025 (Form Rev.03/25) Page 1
DRAFT Professional Services Agreement for
Homeless Garden Project Pathways to Work Program
Professional Services Agreement With

HOMELESS GARDEN PROJECT
For PATHWAYS TO WORK PROGRAM (JULY 1, 2026-JUNE 30, 2027) THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) for professional services is made by and between the City of Santa Cruz (“City”) and HOMELESS GARDEN PROJECT a nonprofit corporation (“Consultant”) (each is referred to individually as a “Party” and collectively, as the “Parties”) as of July 1, 2026. (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 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 Larry Imwalle, Director of Homelessness Response & Community Programs, 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

10.4 City of Santa Cruz
July 2025 (Form Rev.03/25) Page 2
DRAFT Professional Services Agreement for
Homeless Garden Project Pathways to Work Program
City will be the sole judge of acceptable work, provided that such approval will not be unreasonably withheld or 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 and in accordance 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.

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 exceed the budget of $236,658 without advance written City authorization in the form of an amendment or change order.

Invoices shall specify the actual costs and shall specify the direct and indirect costs. Consultant is billing for using a form substantially similar to the sample attached as Exhibit E, the sample Statement of Revenues and Expenditures. Indirect costs shall not exceed those authorized by the Fee Schedule. Should City request, Consultant will provide the underlying documentation to support the charges. Such documentation, if requested, shall detail the time worked by each class of employee on each task and the expenses incurred for which billing is made. 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 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

10.5 City of Santa Cruz
July 2025 (Form Rev.03/25) Page 3
DRAFT Professional Services Agreement for
Homeless Garden Project Pathways to Work Program
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
The term of this Agreement shall be on the effective date of this Agreement and terminating on June 30, 2027. At the option of the City, this Agreement may be renewed annually under the same contractual terms and conditions by letter agreement for up to five additional years. 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

10.6 City of Santa Cruz
July 2025 (Form Rev.03/25) Page 4
DRAFT Professional Services Agreement for
Homeless Garden Project Pathways to Work Program
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 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 http://www.cityofsantacruz.com/home/showdocument?id=59192.

SECTION 12: LEGAL ACTION/ATTORNEYS’ FEES

10.7 City of Santa Cruz
July 2025 (Form Rev.03/25) Page 5
DRAFT Professional Services Agreement for
Homeless Garden Project Pathways to Work Program
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
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

10.8 City of Santa Cruz
July 2025 (Form Rev.03/25) Page 6
DRAFT Professional Services Agreement for
Homeless Garden Project Pathways to Work Program
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.

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,

10.9 City of Santa Cruz
July 2025 (Form Rev.03/25) Page 7
DRAFT Professional Services Agreement for
Homeless Garden Project Pathways to Work Program
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 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

10.10 City of Santa Cruz
July 2025 (Form Rev.03/25) Page 8
DRAFT Professional Services Agreement for
Homeless Garden Project Pathways to Work Program
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 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.

10.11 City of Santa Cruz
July 2025 (Form Rev.03/25) Page 9
DRAFT Professional Services Agreement for
Homeless Garden Project Pathways to Work Program

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 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

10.12 City of Santa Cruz
July 2025 (Form Rev.03/25) Page 10
DRAFT Professional Services Agreement for
Homeless Garden Project Pathways to Work Program
located on the City website at: https://www.cityofsantacruz.com/government/city-departments/publicworks/stormwater/best-management-practices

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.

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.

10.13 City of Santa Cruz
July 2025 (Form Rev.03/25) Page 11
DRAFT Professional Services Agreement for
Homeless Garden Project Pathways to Work Program

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:

City Manager’s Office
Larry Imwalle
809 Center St., Rm 10 Santa Cruz,
CA 95062
[email protected]
831-420-5405
To CONSULTANT:

Homeless Garden Project
Darrie Ganzhorn
PO Box 617
Santa Cruz, CA 95061
[email protected]
831.713.9355
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.

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]

10.14 City of Santa Cruz
July 2025 (Form Rev.03/25) Page 12
DRAFT Professional Services Agreement for
Homeless Garden Project Pathways to Work Program
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: __________________

10.15 City of Santa Cruz
July 2025 (Form Rev.03/25) Page 13
DRAFT Professional Services Agreement for
Homeless Garden Project Pathways to Work Program
EXHIBIT A: SCOPE OF WORK
Homeless Garden Project Program Proposal: Pathways to Work Clean Streets, Strong Futures
Executive Summary
The Homeless Garden Project is proposing a low-barrier Job Readiness program that focuses on beautifying the City through street cleaning and operates across multiple downtown sites. In this proposal we are drawing from experience gained over our 36+ year history. Our approach is to start small, learn from experience, and build intentionally on early successes.

The program integrates proven methods and best practices from both Downtown Streets Team and the Homeless Garden Project. From the Downtown Streets Team, we draw on strategies that support participants in preparing for work, building self-confidence and self-esteem, and developing a sense of pride through participation. From the Homeless Garden Project, we emphasize cultivating job readiness skills, supporting overall well-being, and fostering community.

We recognize that potential participants already possess strong survival skills. This program aims to build on those strengths by cultivating adaptability, resilience, a sense of oneself as an employee, effective communication skills, and the ability to identify and address barriers to employment.

The weekly structure of the 16-week program includes 4 days of city beautification, including trash pickup and gardening public spaces, as well as one day a week (Wednesday) of learning and community building - focused on job skills and general workforce development. Participants meet with a case manager at least once per week for 30 minutes to one hour. These meetings provide support with employment preparation, connection to state and federal benefits, and tracking progress toward key program milestones throughout the program. Additional support is offered as needed to promote overall stability and well-being.

10.16 City of Santa Cruz DRAFT Professional Services Agreement for

HOMELESS GARDEN PROJECT PATHWAYS TO WORK
June 2026 (Form Rev.03/25 ) Page 14
Program Structure:
● Program Goals
● Schedule
● Recruitment
● Payment terms
Program Goals
The goals of the program are for participants to:
● Take steps into preparing for employment; for example, resume building, boosting self-confidence and self-esteem, and acquiring hard and soft skills–communication, team work, time management, conflict resolution, professionalism ● Work as part of a team and build a supportive peer community ● Identify and work towards goals with a supportive staff member, including next steps after the 16 week program
● Strengthen relationships with community members and Downtown merchants, ● Connect to and meet requirements for State and Federal benefits ● Document volunteer hours needed for CalFresh
● Build a bridge between Pathway to Work and Homeless Garden Project participants and programs
● Instill a sense of pride and dignity.

The goals of the program for the City are:
● Street beautification projects for:
○ Downtown Area
○ River Levee
○ Midtown or other keys areas
Circle Meeting Goals
● Community building, listening, positive psychology, sharing accomplishments and goals
● Announcements—community resources, providers’ visits
● Class–focusing on job readiness, Cognitive Behavioral Interventions (CBI), resumes, subjects requested by participants
● Participant accomplishments and successes

10.17 City of Santa Cruz DRAFT Professional Services Agreement for

HOMELESS GARDEN PROJECT PATHWAYS TO WORK
June 2026 (Form Rev.03/25 ) Page 15
Staffing:

Program Manager, full time position. The
Program Manager is responsible for:
● Case management
● Recruitment/Intake
● Overall supervision
● Employment specialist
● Mentoring for Crew Leads
● Incident reports
● Relationships with Downtown Stores
● CalFresh verification
● Problem solving
Payment Terms for Participants
Participants will be paid with stipends and will complete a W9 at intake and be issued a 1099 at the end of their cohort/EOY
Stipends in job training programs are fixed, periodic, non-wage payments intended to cover living, travel, or material expenses, allowing participants to focus on developing skills without needing immediate, full-time employment. They are often used in internships, apprenticeships, or workforce development programs (e.g., $625–$775 per course in some California programs).

Stipends are often used to bridge the gap for participants in workforce programs to ensure they do not leave to seek lower-skilled, paid work.

PROGRAMMATIC AND OPERATIONAL EXPENSES
Stipends For Budget
1 participant 16 weeks x $50/week = $800 16
participants/session
$800/participant x 16 participants = $12,800 X 3 times/year = 12,800 x 3 = $38,400 12,800 x 2 = 25,600
Flexible session timing
$50/participant/week x 16 participants = $800/week
Assuming Three 16 week sessions in year 1, (4 weeks not in session):
● Re-enrollment could be considered on a case-by-case basis when it supports employment readiness goals and program capacity allows. ● During the weeks between cohorts: recruitment, new participant intake and

10.18 City of Santa Cruz DRAFT Professional Services Agreement for

HOMELESS GARDEN PROJECT PATHWAYS TO WORK
June 2026 (Form Rev.03/25 ) Page 16
onboarding, staff and program development
● Desired outcomes:
○ Employment–participants who completed the cohort start working with local employers.
○ Participants who completed the cohort transition to volunteer roles to meet SNAP/CalFresh requirements.
○ Participants who completed the cohort transition tother job training programs ○ We will gauge job readiness using REDF metrics, best practice assessment tools

10.19 City of Santa Cruz DRAFT Professional Services Agreement for

HOMELESS GARDEN PROJECT PATHWAYS TO WORK
June 2026 (Form Rev.03/25 ) Page 17
EXHIBIT B: FEE SCHEDULE

10.20 City of Santa Cruz DRAFT Professional Services Agreement for

HOMELESS GARDEN PROJECT PATHWAYS TO WORK
June 2026 (Form Rev.03/25 ) Page 18
EXHIBIT C: WORK SCHEDULE
Schedule:
● 4 days/week work, Mon/Tues, Thurs/Fri 9-12
● Revised: 4 days/week work, Mon/Tues, Thurs/Fri 9-1
● 1 day/week Circle, job skills sessions and other related classes ○ Wednesday, 9:00-12:00 Circle
○ Wednesday, 12:00-12:30: lunch
○ Participants would receive stipends at this meeting, meeting is open to anyone interested (not eligible for stipend)
● Monday and Friday, 1:30 - 4:30, Wednesday, 12:30-4:30–Case management (10 hours total) In the future, we could include River Stewards programming 2x/month, in partnership with the Coastal Watershed Council.

Location: TBD
Lunch: would like to provide lunch at Circle on Wednesday–the class, meeting and community building day; goal to provide lunch 5 days/week (Phase 2 or 3)
Recruitment:

HGP Waiting list and recruitment methods
SNAP participants that need to record volunteer hours Past DST members
Individuals staying at the Armory
People who need to do court referral hours
5-10 participants for each crew–using 8 for budget 2 crews/3 locations
M, Tu, Th, F 5 hours/day (9 am - 1 pm) 20 hours of work each week Wednesday = 3 hours of group activities, community building, resources, job readiness skills (9 am - noon) Lunch, noon-12:30, 1 on 1 case management follows

10.21 City of Santa Cruz DRAFT Professional Services Agreement for

HOMELESS GARDEN PROJECT PATHWAYS TO WORK
June 2026 (Form Rev.03/25 ) Page 19
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
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.

10.22 City of Santa Cruz DRAFT Professional Services Agreement for

HOMELESS GARDEN PROJECT PATHWAYS TO WORK
June 2026 (Form Rev.03/25 ) Page 20
 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
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.  SELF-INSURED RETENTIONS (SIR)

10.23 City of Santa Cruz DRAFT Professional Services Agreement for

HOMELESS GARDEN PROJECT PATHWAYS TO WORK
June 2026 (Form Rev.03/25 ) Page 21
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.
 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.

10.24 City of Santa Cruz DRAFT Professional Services Agreement for

HOMELESS GARDEN PROJECT PATHWAYS TO WORK
June 2026 (Form Rev.03/25 ) Page 22
EXHIBIT E: SAMPLE STATEMENT OF REVENUES AND EXPENDITURES

10.25 Brittany Inclan
From: Darrie Ganzhorn <[email protected]> Sent: Monday, June 22, 2026 10:06 AM
To: City Council
Subject: Thank you for Homeless Garden Project item on Consent Agenda | 6.23.2026 Attachments: HGP.PTW letter of support.102sig.pdf
Dear Mayor Keeley and City Councilmembers,
Thank you for considering the item on the 6.23.2026 Consent Agenda to authorize the City Manager to execute a PSA with Homeless Garden Project for our pilot Pathways to Work program. We are thrilled by the prospect of operating this program and grateful for your consideration.

I'm attaching a letter signed by 102 individuals in support of this item. Please don't hesitate to contact me if you have any questions.

Sincerely,
Darrie
--
Darrie Ganzhorn
[email protected]
Executive Director
Homeless Garden Project
PO Box 617
Santa Cruz, CA 95061
cell: 831.713.9355
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10.31 10.32
City Council

AGENDA REPORT
DATE: 06/04/2026
AGENDA OF: 06/23/2026
DEPARTMENT: Economic Development
SUBJECT: Kron House Lease Amendment with Arts Council Santa Cruz County (ED) LOCATION: District 5
RECOMMENDATION: Motion to:
1) Approve and authorize the City Manager to execute a Sixth Amendment to the Lease Agreement with Arts Council Santa Cruz County, in a form to be approved by the City Attorney, to extend the lease term for three years and increase the rental rate; and 2) Approve and authorize the City Manager to execute a Memorandum of Lease, in a form to be approved by the City Attorney, to be recorded in the Santa Cruz County Recorder’s Office.

BACKGROUND: Since its renovation in 2013, Arts Council Santa Cruz County (ACSCC) has been the tenant of the Kron House at the Tannery Arts Center. At that time, a 30-year lease was executed. The building is used primarily for office space. During the COVID-19 pandemic ACSCC learned to accommodate remote work, reducing the square footage space needed for operations. Also during that time, one of the building subtenants, Indexical, did not renew their sublease, increasing the overall financial responsibility for ACSCC. In fiscal year 2024, ACSCC provided the City with required notice to terminate their lease because they did not need the entire square footage of the building and the rent combined with the operating costs were too great for the ACSCC budget. To ensure ACSCC maintained a presence at the Tannery Arts Center that positively contributes to the arts community, the City negotiated with ACSCC to modify lease terms by reducing the square footage of the building that it occupies in conjunction with adjusted rent and executed two short term amendments. Throughout this period, ACSCC has shouldered full responsibility for the building operating costs. The current rent is $712/month, and the term ends on June 30, 2026.

DISCUSSION: The Tannery Arts Center Common Area Maintenance (CAM) costs include but are not limited to utilities, landscaping, and security, and are allocated to the tenants of the Tannery Arts Center. CAM costs are shouldered by the Tannery Artists Lofts, the Arts Studios, the Colligan Theater and the Kron House. The allocation to the Kron House, approximately $18,000 in 2026, is a major component of the operating costs that the tenant must bear to operate.

11.1 The nature of the permitted use of the Kron House is that it maintains its art focus, aligning with the original City redevelopment objectives for the Tannery Arts Center. Keeping ACSCC as a tenant in the building is crucial in terms of the attention and activity it brings to the Tannery Arts Center and the esteem it provides the tenants of the Arts Studios. If ACSCC were to vacate the premises, then the City would be liable for the CAM costs of the facility and for operating the building.

ACSCC and staff have been collaboratively working to create an operating model for the Kron House that will provide sufficient rent to the City for long-term maintenance of the building and will cover the operating costs of the building with no charge to the City. This involved calculating the target sublease rental rates of each of the leasable spaces within the building. In the meantime, ACSCC reached out to arts organizations that might sublease space in the building. The Santa Cruz Symphony (Symphony) has outgrown its leased space at the Civic Auditorium and there is no additional space available for expansion. The Symphony is interested in a multi-year sublease of space from the ACSCC. With the Symphony as a secure subtenant, there would be two spaces within the building still available for additional subtenants.

ACSCC and City staff will continue to collaboratively work on finding subtenants. With the Symphony sublease rent to offset its costs, ACSCC has agreed to the terms below. The other original lease terms will remain in effect, including the ability of ACSCC to sublease portions of the building with City approval.

New Lease Amendment Terms
Term – Three-year lease through June 30, 2029
Rent - $20,000/annually, $1,667/monthly
Annual CPI rent adjustment
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed recommendations is not a “project” under CEQA because no direct or indirect physical change to the environment is anticipated.

HEALTH IN ALL POLICIES (HiAP): The Tannery Arts Center was developed by the City to provide affordable housing, studios and theater space for artists. It was recognized that arts and cultural activities support the mental and economic well-being of the community and that artists risk being priced out of our community. The ACSCC headquarters within the City activates the campus and promotes its identity as an arts destination that is open and welcoming to everyone.

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 Tannery Arts Center is an asset of the Housing Successor Fund 281. The revenues from the property are deposited in that fund to be used for property expenses on the mixed-use affordable housing campus.

11.2 Prepared By:

Kathryn Mintz
Development Manager
Submitted By:

Bonnie Lipscomb
Deputy City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

11.3 City Council

AGENDA REPORT
DATE: 06/03/2026
AGENDA OF: 06/23/2026
DEPARTMENT: Economic Development
SUBJECT: Movie Theater Retention Incentive Pilot Program Extension (ED) LOCATION: District 4
RECOMMENDATION: Motion to authorize a one-year extension of the Movie Theater Retention Incentive Pilot Program.

BACKGROUND: At the April 22, 2025 City Council meeting, Economic Development provided an Economic Development Strategy update and received approval for the creation of several new programs to support business growth and retention, including several programs in Downtown Santa Cruz. The City Council authorized the creation of a Movie Theater Retention Incentive Pilot Program (Program) to provide customer parking validation offsets of up to $50,000 for one year for Downtown movie theater operators.

The Program was designed to address the need to retain large entertainment hubs like movie theaters which serve as an anchor for overall business attraction and support for existing retail and restaurant businesses. Santa Cruz Cinema is in direct competition with other theaters in the County that provide free parking, and the cinema has made significant capital investments to their theater including improvements to the lobby, restrooms, snack bar, and some exterior improvements to improve the overall patron experience and to be more competitive with other theaters within the county.

DISCUSSION: The Program began operation in July 2025 and Santa Cruz Cinema was authorized to advertise 2-hour parking validations at Downtown garages with proof of same-day movie theater tickets. From July 2025 to May 2026, the Program provided movie theater patrons 2,418 parking validations valued at $9,046. The Program was designed to expire the earlier of the date on which the City has provided $50,000 in total parking discounts under the Program, or July 31, 2026, unless the City decided to terminate at an earlier time, with or without cause.

The Program’s intent is to encourage customers to spend more time Downtown with the validation enabling additional trips beyond a visit to the movies. Santa Cruz Cinema reports that customer feedback has been very positive and movie theater patrons value the opportunity to have 2-hour validation. The City and Santa Cruz Cinema have found mutual benefit from the Program and would like to extend the Program for an additional one-year term, expiring July 31, 2027, or until budgeted funds are exhausted. Economic Development budgeted $41,470.00 for

12.1 the Program continuation during the Fiscal Year 2027 budget process. It will reduce the FY 2027 Program budget dependent on funds used during FY 2026 to stay within the overall $50,000 Program budget.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed recommendations is not a “project” under CEQA because no direct or indirect physical change to the environment is anticipated.

HEALTH IN ALL POLICIES (HiAP): The Movie Theater Retention Incentive Program supports the HiAP goals of enhancing quality of life for residents and equity by creating opportunities for community members to enjoy Downtown’s entertainment hubs while reducing their costs for parking. The Program encourages residents to visit Downtown and contribute to the community’s economic growth and prosperity.

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: There is no impact to the General Fund. The Movie Theater Retention Pilot Program has remaining funds for the current FY and additional funding is budgeted in the Office of Economic Development’s FY 2027 budget. The $50,000 Program is funded by the Economic Development Trust Fund (Fund 136).

Prepared By:

Rebecca Unitt
Economic Development
Manager
Submitted By:

Bonnie Lipscomb
Deputy City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

12.2 Brittany Inclan
From: Judi Grunstra <[email protected]>
Sent: Sunday, June 21, 2026 6:19 PM
To: City Council
Subject: Consent Agenda 12
Dear Mayor and Council:

I strongly encourage continuing the Movie Theater Retention Incentive Pilot Program. I am definitely motivated by the 2 hour free parking in the Locust St. garage to go to a Tuesday movie at the Santa Cruz Cinema. I do other errands downtown, try a new restaurant, check out new shops, etc. after the afternoon movie. It is certainly true that free parking at the Capitola Cine-Lux (or Scotts Valley Cine-Lux) is a reason to see the same film there, and not have to pay to park.

I wish the Del Mar participated in this parking validation program.

Thanks.

Judi Grunstra
P.S. I was just in Los Gatos, and really appreciate their FREE 3-Hour PARKING downtown!

12.3 City Council

AGENDA REPORT
DATE: 06/03/2026
AGENDA OF: 06/23/2026
DEPARTMENT: Economic Development/Public Works
SUBJECT: School Street Staircase Renovation Contract (ED IIG Parks and Paseos c102711) (ED/PW)
LOCATION: District 5
RECOMMENDATION: Motion to:
1) Approve the Plans and Specifications for the School Street Staircase Renovation Project (c102711);
2) Authorize the Public Works Director to solicit bids and award the contract, in a form to be approved by the City Attorney;
3) Authorize the Public Works Director to, within the approved project budget, execute change orders and approve modifications of the design, plans, and specifications; and 4) Adopt a CEQA finding of categorical exemption pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and Section 15302 (Replacement or Reconstruction).

BACKGROUND: In January 2021, the Arts Commission approved the creation of the City Arts Recovery Design (CARD) Pilot Grant Program which was subsequently approved by the City Council. As part of the program development, City staff identified priority locations for proposed projects which were subsequently included in the call for artists. It was launched in close collaboration with the Arts Council Santa Cruz County (ACSCC) and included the themes of health and safety, economic recovery, and restorative justice.

One priority project location identified by Parks and Recreation was the School Street Staircase which connects the Mission Plaza area to the Downtown. Artist Julia Barzizza proposed the project “Awakening Nourishing Fires,” a mosaic artwork inspired by the Amah Mutsun creation story that would depict the indigenous population using fire to promote regeneration of ecology.

The mosaics would be installed on the risers of the staircase. In November 2022, the Arts Commission approved the project and funding.

13.1 The staircase connects patrons of the many activities programmed at the Mission to the available parking below. It is also an important transportation route for residents of the Mission neighborhood. Both State Parks staff and residents are supportive of the project.

DISCUSSION: Although the art project is funded to move forward, it is not possible to install the mosaics until the concrete staircase can be repaired. City staff have worked to get proposals for repair, but there has not been sufficient funding to date available for the work.

The School Street Staircase is located within the designated area for the State Funded Infill Infrastructure Grant (IIG) Program. Funding for the proposed renovation of the staircase is available from the grant funded project, ED IIG Parks and Paseos (c102711). Public Works has been working with a local contractor and consultant on a technique for renovation of the staircase which will involve installation of aluminum, slip resistant nosings on the staircase treads that will improve pedestrian safety and provide a protected vertical space for the tile.

In May 2026, two of the nosings were successfully installed on the staircase as a trial for the renovation project. Staff now recommends moving forward with the full renovation and City Council approval of the plans and specifications for the School Street Staircase Renovation project, authorization to solicit bids, award the contract, and execute change orders within the project budget. The project includes installation of the mosaic artwork on the risers of the staircase.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The staff recommendation relates to repair and safety improvements for an existing staircase, involving negligible or no expansion of existing use. The improved staircase will have substantially the same purpose and capacity as the existing staircase. The proposed Council action is therefore exempt from CEQA under CEQA Guidelines Section 15301 (Existing Facilities) and Section 15302 (Replacement or Reconstruction).

HEALTH IN ALL POLICIES (HiAP): The project aligns with the City’s HiAP Core Condition - A Safe and Just Community by increasing safety for pedestrians. In addition, the project aligns with the General Plan, Climate Action Plan, and Active Transportation Plan. The General Plan calls for a “citywide interconnected system of safe, inviting, and accessible pedestrian ways and bikeways” (Goal M4). The Climate Action Plan includes the transportation objective to meet an 80% reduction in greenhouse gas (GHG) emissions by 2050, which will be primarily accomplished by providing low-carbon transportation options that rival the efficiency and safety of the automobile.

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 School Street Staircase Renovation is funded by ED IIG Parks and Paseos (c102711) at an estimated cost of $165,000. The artwork cost of $50,000 will be funded separately through the City Arts Initiative project (a511401).

13.2 Prepared By:

Christophe Schneiter
Technical and Management
Assistant
Kathryn Mintz
Development Manager
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Bonnie Lipscomb
Deputy City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. ED IIG PARKS AND PASEOS SCHOOL ST STAIRCASE RENOVATION.PDF

2. SCHOOL STREET STAIRCASE SPECIFICATIONS 6.2.26.DOCX

13.3 13.4

ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
1 PUBLIC WORKS DEPARTMENT

INVITATION FOR BIDS,

SPECIFICATIONS, AND CONTRACT DOCUMENTS
FOR

ED IIG PARKS AND PASEOS, SCHOOL STREET STAIRS RENOVATION CITY PROJECT NO. c102711

SANTA CRUZ CITY COUNCIL
Fred Keeley, Mayor
Shebreh Kalantari-Johnson, Vice Mayor
Gabriela Trigueiro
Sonja Brunner
Scott Newsome
Susie O’Hara
Renee Golder
Matt Huffaker, City Manager
Bonnie Bush, City Clerk Administrator
Cassie Bronson, City Attorney
Nathan Nguyen, Public Works Department Director
Kevin Crossley, Assistant Public Works Department Director BID OPENING JULY 23, 2026 @ 2:00 PM PACIFIC STANDARD TIME Closing time to receive bids will be verified by the on-line clock maintained by the found at: www.time.gov

13.5 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
2 NOTICE INVITING SEALED PROPOSALS OR BIDS
NOTICE IS HEREBY GIVEN that the City of Santa Cruz, California (the “City”), invites sealed Bids for the following “Project”:

ED IIG PARKS AND PASEOS, SCHOOL STREET STAIRS RENOVATION City Project #c102711

1. Date and Place of Opening Bids. Sealed bids for the construction of the Project will be received at the Public Works Department, 809 Center Street, Room 201, Santa Cruz, California 95060, until July 23, 2026, at 2:00PM local time in a sealed envelope plainly endorsed with the Project Name and Number, listed above. At that time, the Bids received will be publicly opened and read. Attendees will be required to wear face masks, social distance, and follow any other safety measures currently recommended by the County Public Health Officer. Bids received after the date and time stated above will be rejected as nonresponsive.

2. Location of Project. The Project is to be performed at the following location: North Pacific Avenue, between 2017 and 2027 North Pacific Avenue.

3. Description of Work. The Project to be performed consists of furnishing all labor, materials, tools, equipment, and transportation required to complete the Project, with a scope of work to generally include, but is not limited to, the following:

Repair and seal concrete stairs, install aluminum stair nosings, grout and tile.

For additional information, please access the City of Santa Cruz bidding portal listed in Paragraph 18, below.

4. Time for Completion. The Project shall be completed in forty five (45) working days. All time limits stated herein are of the essence

5. Bidding Documents. The “Bidding Documents” shall include this Notice Inviting Bids, the Bid Form including all attachments included herein, General Requirements, Technical Specifications (including all plans, drawings, and reports), Addenda, draft Agreement, the City’s Standard Specifications (dated 2002), as amended1, the State of California’s Department of Transportation Standard Specifications (dated 2022), as amended, and all other documents identified herein.

6. Obtaining the Bidding Documents. Bidding Documents may be downloaded, without charge, from the following designated website: http://cityofsantacruz.com/business/bidding1 The City’s Standard Specifications (dated 2002) are located via the City Website at:
https://www.cityofsantacruz.com/home/showpublisheddocument?id=2467.

13.6 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
3 information. Paper Bidding Documents may be examined and copies secured from the office of the Public Works Department, 809 Center Street, Room 201, Santa Cruz, California 95060.

Prospective bidders are urged to register with the designated website as a Bidding Documents holder, even if Bidding Documents are obtained from a source other than the designated website or City in either electronic or paper format. The designated website will be updated periodically with Addenda, reports, and other information relevant to submitting a bid for the Project. All official notifications, Addenda, and other Bidding Documents will be offered only through the designated website. Neither City nor any City official, employee, or agent will be responsible for Bidding Documents, including Addenda, if any, obtained from sources other than the designated website or the City.

7. Submitted Bid. Each sealed Bid shall comply with the Bidding Documents and be submitted on the Bid Form, including all attachments. Contractor must clearly and legibly set forth all information requested in the manner and form indicated.

By submitting a Bid, the Bidder represents that it has carefully examined and investigated the Project site and all Bidding Documents.

Each Bid shall include a bid security in the form of a certified check, cashier's check, or bidder's bond made payable to the order of the City of Santa Cruz, California, for an amount not less than (10) percent of the amount of the Proposal. The bid security shall be given as a guarantee that the successful bidder will enter into the contract and will be declared forfeited if the successful bidder refuses or fails to enter into said contract.

All bidders shall submit with its Bid the included sworn statement of its financial responsibility, technical ability, and experience.

8. Addenda. All submitted Bids shall verify if the City has issued any addenda for this Project.

It is the bidder’s sole responsibility to ensure that all addenda requirements are included in the submitted Bid. All addenda shall be posted on the City’s designated website.

9. Pre-Bid Conference. A pre-bid conference will be held at the Project site, listed in Section 2, above, on July 13, 2026 at 1:30 PM local time. All attendees will be required to wear face masks, social distance, and follow any other safety measures currently recommended by the County Public Health Officer.

10. Withdrawing Submitted Bid. A bidder may withdraw a submitted Bid at any time prior to the time of bid opening only by written request to the City. Unless otherwise required by law, no bidder may withdraw its Bid for a period of sixty (60) days after the bid opening.

11. Award of Contract. The City will award the Project to the lowest responsible and responsive bidder. The City reserves the right to reject any and all Bids, including but not limited to for any minor irregularities, or waive any informalities or minor defects in proposals received.

13.7 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
4 The City may reject a Bid if it determines that any of the bid prices are materially unbalanced to the potential detriment of the City.

Within ten (10) calendar days after receiving written notice that the contract has been awarded, the successful bidder shall return to the City the signed agreement, together with the completed Labor and Material Bond and Faithful Performance Bond each in an amount equal to one hundred percent (100%) of the contract price (issued by a corporate surety company approved by the City Attorney), insurance certificates, and all other documents as required by the Bidding Documents.

12. Department of Industrial Relations Monitoring. This Project is subject to compliance monitoring and enforcement by the Department of Industrial Relations (DIR). Prevailing wages as published by the DIR are required for all workers, including those employed by subcontractors, for all non-federally funded projects.

No contractor or subcontractor may be listed on a Bid or awarded the contract for the Project unless registered with the DIR pursuant to Labor Code section 1725.5 and 1771.1.

Refer to the DIR website, http://www.dir.ca.gov, to register and to find the correct wage rates and answers to questions related to prevailing wage requirements.

13. Section intentionally omitted.

14. Licenses. Bidders and their proposed subcontractors shall hold such licenses as may be required by the laws of the State of California for the performance of the Work. The Contractor is required to ensure that all subcontractors listed in the Bid Form and working on this Project hold valid licenses and certifications suitable for their trade. Bidder is required to provide with its Bid satisfactory proof of licensure to the City.

Bidders bidding as the Prime Contractor shall possess a valid California Contractor’s Class A license at the time of bid submittal, and all listed subcontractors shall hold valid licenses suitable for their trade at the time of bid submittal. Failure to possess required licenses at the time of bid submittal may render the bid non-responsive and shall act as a bar to award of the contract to the bidder and shall result in a forfeiture of the bid security.

Bidder and all subcontractors shall maintain the required licenses throughout the entire Project until the City issues a Notice of Completion.

15. Retention. Progress payments are subject to 10% retention withholding until thirty-five (35) calendar days after recording the notice of completion. Pursuant to California Public Contract Code Section 22300, for monies earned by the General Contractor and withheld by the City to ensure the performance of the Contract. The General Contractor, at its option, may choose to substitute securities meeting the requirements of California Public Contract Code Section 22300, or have the retained, earned monies deposited in an escrow account at a federal or state-chartered bank.

13.8 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
5 16. Business License. All Contractors and subcontractors working in the City must have a valid City of Santa Cruz business license at the time the contract is awarded, pursuant to Santa Cruz Municipal Code (SCMC) Chapter 5.04.

17. Good Faith Local Hiring and Apprenticeships. Section intentionally omitted.

18. Questions for City. All questions relative to this Project prior to the opening of Bids shall be submitted to the following designated website: City of Santa Cruz Procurement Portal (https://procurement.opengov.com/portal/santacruzca). Questions shall be received a minimum of five (5) working days prior to the above-stated Bid opening date.

This Advertisement is issued by the City of Santa Cruz, California.

Dated: June 24, 2026 ______________________________
Kevin Crossley
Assistant Director/City Engineer
Public Works Department
809 Center Street, Rm. 201
Santa Cruz, CA 95060

13.9 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
6 BID FORM
For

ED IIG PARKS AND PASEOS, SCHOOL STREET STAIRS RENOVATION City Project #c102711
TO: The Council of the City of Santa Cruz
PROPOSAL OF:

Business Address:

Business Telephone:

The undersigned Bidder proposes and agrees, if this Bid is accepted, to enter into an Agreement, in the form specified in the Contract Documents, with the City of Santa Cruz (“City”) to perform all work as specified or indicated in the Bidding Documents for the prices and within the times indicated in this Bid and in accordance with the Bidding Documents.

The undersigned Bidder understands that any or all quantities of work shown herein are approximate only and are subject to increase or decrease and offers to do the work whether the quantities are increased or decreased at the unit prices as stated in the following tabulation. The undersigned Bidder agrees to take in full payment for the work, including all applicable state and local taxes, the amount shown on the bid sheet.

Please note closing time to receive bids will be verified according to www.time.gov.

IT IS UNDERSTOOD THAT THIS BID IS BASED UPON COMPLETION OF THE WORK AS SPECIFIED IN THE SPECIAL PROVISIONS WITHIN FORTY-FIVE (45)

WORKING DAYS, AND THE PRICES INCLUDE ALL STATE, FEDERAL, AND OTHER TAXES APPLICABLE TO THE PROJECT.

The undersigned Bidder agrees to do any extra work, not covered by the above schedule of price, which may be ordered by the City, and to accept as full compensation therefore, such prices as may be agreed upon in writing by the City and the Contractor in accordance with the “Measurement and Payment” Section of the Standard Specifications.

If awarded the contract, the undersigned Bidder hereby agrees to submit the following documents to the City within ten (10) business days of the Notice of Award: a signed Agreement, executed bonds (including Faithful Performance Bond and Payment Bond), proper evidence of insurance, and any other forms or documents identified in the Bidding Documents and Notice of Award. The undersigned Bidder further agrees to begin work within ten (10) days after receiving the Notice to Proceed.

13.10 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
7 The undersigned Bidder has carefully examined the form of the Agreement, the Standard Specifications, the Plans and Special Provisions for the project hereinbefore described and referred to in the “Invitation to Bidders” inviting proposals for the ED IG Parks and Paseos, School Street Stairs Renovation and also the site of the work and will provide all necessary machinery, tools apparatus and other means of construction, and do all the work and furnish all materials required by said Specifications and Plans and Special Provisions in the manner described therein.

No bid will be considered for less than all items of this schedule and one contract will be awarded for the entire Project.

The undersigned has carefully checked the bid prices, and all computations involved in the preparation of this bid and understands that the City of Santa Cruz will not be responsible for any errors or omissions on the part of the undersigned in making up this bid.

This Bid is made with a full knowledge of the kind, quantities, and quality of the work and of materials, equipment, and plans required. This proposal is also made after a complete, careful, and independent examination and investigation of the site of the work, local conditions affecting the same, and materials to be encountered.

The undersigned Bidder hereby acknowledges receipt of the following Addenda:

Addendum Number Addendum Date
The Bidder furthermore agrees that in case of its default in executing said Agreement with necessary bonds, the check or bond accompanying this Bid and money payable will become and remain the property of the City of Santa Cruz.

Enclosed is Bidder’s bond, certified check, or cashier’s check no. of the Bank for $ which is not less than 10 percent of the Bid submitted by the undersigned, payable to the City of Santa Cruz, California, and which is given as a guarantee that the undersigned will enter into the contract if awarded the work.

It is understood and agreed that the City may reject any or all proposals, or waive any informalities or minor defects in proposals received.

It is agreed that this bid may not be withdrawn over a period of sixty (60) days from the opening thereof.

13.11 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
8 Bidder submits the following complete and executed documents herewith to form a complete Bid:

1. Bid Form

2. Basis of Bid

3. Bid Bond (if used as security)

4. List of Subcontractors Form

5. DIR Compliance Affidavit

6. Contractor Reference Information

7. Non-Collusion Declaration

8. Bidder’s Financial Qualification
Note: Bidders should not add any conditions or qualifying statement to this bid as otherwise the bid may be declared irregular as being not responsive to the Advertisement for Bids.

The undersigned declares under penalty of perjury that the information contained in this Bid and all accompanying documents are true and correct. A notary acknowledgment is required.

Dated: Firm Name:

Official Address: Phone:

Email Address:

By: Title:

State Contractor’s License No.:

DIR Registration No.:

Signature of Bidder:

13.12 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
9 Basis of Bid
Name of Bidder:

Project Name/Number: ED IIG PARKS AND PASEOS, SCHOOL STREET STAIRS RENOVATION Item
No. Item Description Unit
Estimated
Quantity
Unit Price
($)
Unit Price
Extension ($)
1 Traffic Control LS 1
2 Repair Concrete Stairs LS 1
3 Concrete Stair Sealer LS 1
4 Cast Aluminum Stair Nosings Installation LS 1
5 Mosaic Tile Installation LS 1

SUBTOTAL
10% CONTINGENCY
TOTAL
Total Basis of Bid Plus Contingency in Words:

13.13 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
10 Bid Bond
(If Bond Posted as Security)
KNOW ALL PERSONS BY THESE PRESENT:

THAT WE, , AS PRINCIPAL,
AND , AS SURETY, are held and firmly
bound unto the City of Santa Cruz in the penal sum of 10 PERCENT OF THE TOTAL AMOUNT OF THE BID of the Principal above named, submitted by said Principal to the City of Santa Cruz for the work described below, for the payment of which sum in lawful money of the United States, well and truly to be made to the City of Santa Cruz to which said bid was submitted, we bind ourselves, our heirs, executors, administrators, and successors, jointly and severally, firmly by these presents. In no case shall the liability of the surety hereunder exceed the sum of $___________________________________.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT, WHEREAS, the Principal has submitted the above-mentioned bid to the City of Santa Cruz, aforesaid, for certain construction specifically described as follows, for which the bids are to be opened at:
2:00 PM/ July 23, 2026
809 Center Street, Room 201, Santa Cruz, CA 95060
For: ED IIG PARKS AND PASEOS, SCHOOL STREET STAIRS RENOVATION City Project #c102711
NOW, THEREFORE, if the aforesaid Principal is awarded the contract and, within the time and manner required under the specifications, after the prescribed forms are presented to him/her for signature enters into a written contract, in the prescribed form, in accordance with the bid, and files the certificate of insurance and two bonds with the City, one to guarantee faithful performance, and the other to guarantee payment for labor and materials as required by law, then this obligation shall be null and void; otherwise, it shall be and remain in full force and virtue.

IN WITNESS WHEREOF, we have hereunto set our hands and seals on this _________day of____________, 20 ___.

PRINCIPAL SURETY
__________________________________ (Seal) (Seal)
__________________________________
Signature Signature
__________________________________
Title Title
__________________________________
Address Address
(Note: Signatures of those executing for the surety as an Attorney-in-Fact must include a Notary Acknowledgement.)

13.14 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
11 List of Subcontractors Form
Name of Bidder:

Project Name/Number: ED IIG PARKS AND PASEOS, SCHOOL STREET STAIRS RENOVATION Bidder will use Subcontractors for the Work: □ YES □ NO For each subcontractor to whom the Bidder proposes to subcontract portions of the work in an amount in excess of one-half of one percent, Bidder shall indicate on this form each proposed subcontractor’s legal/contracting entity name, business address and phone number, the Contractor’s State Licensing Board license number, the public works contractor registration number issued pursuant to California Labor Code Section 1725.5, the dollar amount and proportion (in percent) of the Work of each Subcontractor (of any tier) to whom a portion of the Work will be awarded via one or more subcontracts, and the work to be performed by the subcontractor.

Subcontractor’s
Legal Name
Business
Address and
Phone
Number
CSLB
License
Number
Public
Works
Contractor
DIR
Number
Subcontract
Amount and
Proportion
of Total Bid
Price
Work to Be
Performed
(Attach additional sheets, if necessary)

13.15 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
12 DIR COMPLIANCE AFFIDAVIT
Name of Bidder:

Project Name/Number: ED IIG PARKS AND PASEOS, SCHOOL STREET STAIRS RENOVATION California Labor Code requires private contractors, and their subcontractors, to pay prevailing wages to their workers when working on a project funded by a public entity. Prevailing wages are due if the project costs more than $1,000, and involves the following construction work: new construction, alteration, demolition, installation, repair and maintenance. Contractors must also make an attempt to hire apprentices when the total project costs exceed $30,000.

Prior to commencement of the Contract, all Contractors and subcontractors are required to register, and maintain active registration throughout the duration of the contract with the California Department of Industrial Relations (DIR). For information regarding registration, please go to https://www.dir.ca.gov/Public-Works/PublicWorks.html.
• No contractor or subcontractor may be listed on a bid proposal for a public works project (effective March 1, 2015) unless registered with the DIR pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)]. • No contractor or subcontractor may be awarded a contract for public work on a public works project (effective April 1, 2015) unless registered with the DIR pursuant to Labor Code section 1725.5.
• DIR registration is required each fiscal year (July 1 – June 30).

I, the Bidder, certify that:

I acknowledge that this project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. I am aware of the provisions of Senate Bill SB 854 and Labor Code sections 1725.5, 1771.1(a), 1774-1776, 1777.5, 1813, and 1815 which require Contractors to comply with all labor compliance requirements, including but not limited to, prevailing wage requirements, Public Works Contractor Registration Program, Electronic Certified Payroll Reporting, and other requirements described in the DIR website. I will comply with such provisions before commencing the performance of the work of this contract, and maintain compliance throughout the completion of said contract.

Signature Date
Print Name Title

13.16 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
13 Contractor Reference Information
Name of Bidder:

Project Name/Number: ED IIG PARKS AND PASEOS, SCHOOL STREET STAIRS RENOVATION Failure to provide this information may constitute grounds for rejection of the bid.

The Bidder has been engaged in the contracting business under State License No.(s) for a period of years.

The following are five owners for whom the Bidder has constructed projects of similar scope to the Project. Such projects will have been completed within the past five years.

1. Name, Address, Phone No:

Project Description:

Date Completed:

2. Name, Address, Phone No:

Project Description:

Date Completed:

3. Name, Address, Phone No:

Project Description:

Date Completed:

4. Name, Address, Phone No:

Project Description:

Date Completed:

5. Name, Address, Phone No:

Project Description:

Date Completed:

13.17 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
14 Non-Collusion Declaration
(Pursuant to Section 7106 of the Public Contract Code)
Name of Bidder:

Project Name/Number: ED IIG PARKS AND PASEOS, SCHOOL STREET STAIRS RENOVATION The undersigned declares:

I am the of , the party making the foregoing bid.

The bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The bid is genuine and not collusive or sham.

The bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid. The bidder has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or to refrain from bidding. The bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder. All statements contained in the bid are true.

The bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof, to effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose.

Any person executing this declaration on behalf of a bidder that is a corporation, partnership, joint venture, limited liability company, limited liability partnership, or any other entity, hereby represents that he or she has full power to execute, and does execute, this declaration on behalf of the bidder.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on , 20__, at [City], , [State].
(Signature)

13.18 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
15 Bidder’s Financial Qualification
Name of Bidder:

Project Name/Number: ED IIG PARKS AND PASEOS, SCHOOL STREET STAIRS RENOVATION Reference is hereby made to the following bank or banks as to the financial responsibility of the Bidder:

Name of Bank Address/Phone Number/Contact Name & Title
Reference is hereby made to the following surety companies as to the financial responsibility and general reliability of the Bidder:

Company:

Address:

Company:

Address:

I certify that Bidder is financially and technically capable of performing and has the necessary experience to perform the work of the contract.

I declare under penalty of perjury that the foregoing is true and correct. This certificate is executed on ______________[date], at ______________[city], ______________[state].

BIDDER
Name:

Title:

13.19 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
16 AGREEMENT
THIS AGREEMENT, made and entered into this ________day of ______________, 20___ (“Effective Date”), by and between the CITY OF SANTA CRUZ, a municipal corporation, hereinafter called “City,” and _________________________________, hereinafter called “Contractor;”
WITNESSETH, that the parties hereto do mutually agree as follows:

ARTICLE I
That for and in consideration of the covenants and agreements herein contained and the payments at the prices stated in the bid proposal attached hereto, and by this reference made a part hereof, the Contractor hereby covenants and agrees to furnish any and all required supervision, labor, equipment, material, services, and transportation, as set forth in the Contract Documents as hereinafter defined, and will bear any and all other expense necessary or incidental to the performance of certain work hereinafter specified, and to build, construct, reconstruct, pave or repave and complete improvements for:

ED IIG PARKS AND PASEOS, SCHOOL STREET STAIRS RENOVATION City Project #c107711
(the “Project”) in strict conformity and compliance with the Contract Documents, and to do everything required by this Agreement, and by said Contract Documents as hereinafter defined (the “Work”).

ARTICLE II
It is expressly agreed and understood by each and every party to this Agreement that the following documents are hereby incorporated and made a part of this Agreement (hereinafter the “Contract Documents”):

A. All applicable Laws and Regulations
B. Duly issued Agreement modifications, and allowance authorization(s) signed by the City, in chronological order by effective date of each.

C. This Agreement, including:
a. Exhibit A – Contractor’s Bid Proposal, including all attachments D. Labor and Material Bond (Payment Bond)
E. Faithful Performance Bond
F. Insurance Certificates, including Contractor’s Certificate Relating to Worker’s Compensation G. Invitation For Bids for ED IIG Parks and Paseos School Street Stairs Renovation, c102711, including the Project Specifications, drawings, and plans, all Exhibits, and all Addenda in the reverse order of date of issuance
H. General Conditions
I. Standard Specifications, including the City Specifications and all applicable State Specifications and/or Drawings

13.20 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
17 The parties to this Agreement do hereby expressly acknowledge that they have read, understand, and promise to comply with each and every provision of Contract Documents. There are no Contract Documents other than those indicated above. In the event inconsistencies, conflicts, or ambiguities between and among the Contract Documents are discovered, the parties shall attempt to resolve any ambiguity, conflict, or inconsistency informally, recognizing that the Contract Documents shall take precedence in the order in which they are listed above. Inclusion of an order of precedence herein does not in any way negate or reduce Contractor’s obligation to report conflicts, discrepancies, apparent omissions, and similar matters to the City.

ARTICLE III
It is expressly agreed and understood by the Contractor that the “Standard Specifications” consists of the documents on file at the Public Works Department of the City of Santa Cruz, entitled:

1. City of Santa Cruz Department of Public Works, Department of Parks and Recreation, and Water Department 2002 Standard Specifications (“City Specifications”);

2. Standard Specifications of the State of California, Department of Transportation, dated 2022 (“State Specifications”); and

3. State of California /Caltrans: California Manual on Uniform Traffic Control Devices (CA MUTCD) (2014 Revision 6).

Where conflicts arise between the City’s Standard Specifications and the State Specifications, the City’s Standard Specifications shall control and apply.

ARTICLE IV
Contractor shall conform to all laws and regulations of the United States and the State of California, as well as laws of Santa Cruz, as may be applicable to the Project. In addition, the City Council of the City of Santa Cruz endorses the MacBride Principles and the Peace Charter and encourages all companies doing business in Northern Ireland to abide by the MacBride Principles.

ARTICLE V
The City hereby contracts to pay said Contractor the prices provided for in the Bid Proposal in the manner, to the extent, and at the times set forth in the Contract Documents.

ARTICLE VI
It is agreed by the parties hereto that the acceptance of the Contractor's performance will be made only by an affirmative action of the City of Santa Cruz City Council in session, evidenced by resolution, and upon the filing by the Contractor of a Release of all Claims of every nature on account of work done under this Agreement, together with an affidavit that all claims have been fully paid.

The acceptance by the Contractor of said final payment shall constitute a waiver of all claims against the City arising out of or in connection with this Agreement.

13.21 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
18 ARTICLE VII
To the fullest extent permitted by law, Contractor shall defend, indemnify, and hold harmless the City and CA Housing $ Community Development and its respective officials, officers, directors, partners, employees, and authorized agents (“Indemnitees”) from and against any and all claims, suits, actions, judgments, demands, liabilities, losses, damages, expenses, including attorneys’ fees and costs of litigation (collectively, “Losses”), arising from personal or bodily injuries, death, property damage, or otherwise in any way related to, connected with, or resulting from the obligations or performance of the Work under this Agreement by Contractor, subcontractors, and their respective officers, directors, employees, agents, or other third parties directly or indirectly employed by or under the authority or control of Contractor or subcontractors. This provision shall not be deemed to require the Contractor to indemnify or hold harmless an Indemnitee for any Loss proximately caused by the sole or active negligence or willful misconduct of the Indemnitee, as determined by a court or other adjudicatory body of competent jurisdiction.

Contractor acknowledges and agrees that Contractor’s obligation to defend the City and the other Indemnitees arises at the time such Losses is tendered to Contractor by the Indemnitees and continues at all times until finally resolved, and/or decided by an adjudicatory body or a court of competent jurisdiction. This provision shall survive the termination of the Agreement or the completion of the Work.

This indemnification clause supersedes any other indemnification clauses contained in any other Contract Documents.

ARTICLE VIII
Article intentionally deleted.

ARTICLE IX
General Terms

1. Complete Agreement. This Agreement, along with the terms and conditions in the Contract Documents and 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.

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

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

13.22 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
19 4. Governing Law. This Agreement shall be governed by and interpreted in accordance with California law.

5. 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.

6. 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.

7. 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.

Signature Page to Follow

13.23 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
20 IN WITNESS WHEREOF, this Agreement is executed by the City Manager of the City of Santa Cruz, under and pursuant to a resolution of the City Council authorizing such execution, and the Contractor has affixed his/her signature hereto the day and year first hereinabove written.

Technical Review by:

Date:

Kevin Crossley, Assistant Director/City Engineer
Approved as to Form by:

Date:

Cassie Bronson, City Attorney
For Contractor Name:

Signature: Date:
(Name, Title)
For CITY OF SANTA CRUZ, a municipal corporation
Date:

Matt Huffaker, City Manager

13.24 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
21 LABOR AND MATERIAL BOND
WHEREAS, as the City Council of the City of Santa Cruz, a municipal corporation in the County of Santa Cruz, State of California (the “City”), has awarded to , hereinafter designated as the “Principal”, a contract for constructing the work or improvement described in the contract documents entitled:

ED IIGPARKS AND PASEOS, SCHOOL STREET STAIRS RENOVATION City Project #c107711
adopted by the City Council of the City on ___________, 20___ and WHEREAS, said Principal is required under the terms of said contract to furnish a Labor and Material Bond, the surety of this bond will pay the same to the extent hereinafter set forth; and WHEREAS, the said Principal is about to enter into the annexed contract with the City to complete the work or improvement referred to above for the City, all as more particularly and in detail shown upon the Contract Documents filed in the Office of the City Clerk of the City:

NOW, THEREFORE, we, the Principal, and , a
corporation organized and existing under and by virtue of the laws of the State of as “Surety”, are held and firmly bound unto the City of Santa Cruz in the sum of dollars ($ ), such sum being not less than one
hundred percent (100%) of the estimated contract cost of the work, lawful money of the United States of America, to be paid to the City of Santa Cruz, for payment of which sum, well and truly to be made, we hereby bind ourselves, our heirs, administrators, executors, successors and assign jointly and severally.

THE CONDITION OF THIS OBLIGATION IS SUCH, that if said Principal or its heirs, executors, administrators, successors or assigns, shall fail to pay for any materials, provisions, vendor supplies, or equipment as provided in the contract documents, upon, for, or about the performance of the work contracted to be done, or for any work or waiver thereon of any kind, or for amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, or fails to pay any of the persons authorized under Civil Code Section 9100 to assert a claim against a payment bond, or fails to pay for any amounts required to be deducted, withheld, and paid over to the Franchise Tax Board for the wages of employees of the Principal or his/her subcontractor pursuant to Section 18806 of the Revenue and Taxation Code, or fails to pay for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the principal and all subcontractors with respect to such work and labor that the surety or sureties will pay for the same, in an amount not exceeding the sum specified in this bond, and also, in case suit is brought upon the bond, will pay, in addition to the face amount hereof, a reasonable attorney's fee, to be fixed by the Court.

The condition of this obligation is such that its terms inure to the benefit of any of the persons and entities authorized in Civil Code Section 9100 to assert a claim against a payment bond so as to

13.25 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
22 give a right of action to such persons or entities or their assigns in any suit brought upon or action to enforce liability on the bond.

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the contract or to the work to be performed thereunder shall in any manner affect its obligation upon this bond, and it does hereby explicitly waive notice of any such change, extension of time, alteration or addition to the terms of the contract or to the work to be performed thereunder, and further explicitly hereby waives its rights under Civil Code Section 2819.

IN WITNESS WHEREOF, the above parties have executed this instrument under their seals this day of , 20_____, and duly signed by its undersigned
representative, pursuant to the authority of its governing body.

PRINCIPAL:

Firm name:

Printed name:

Signature: Date:

Title:

SURETY:

Firm name:

Printed name:

Signature: Date:

Title:

I hereby approve the form of the within bond.

City Attorney Date:
(Note: Signatures of those executing for the surety as an Attorney-in-Fact must include a Notary Acknowledgement.)

13.26 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
23 FAITHFUL PERFORMANCE BOND
WHEREAS, the City Council of the City of Santa Cruz, a municipal corporation in the County of Santa Cruz, State of California (the “City”), and
hereinafter designated as “Principal” have entered into an agreement whereby Principal agrees to install and complete the work or improvement described in the contract documents entitled:

ED IIG PARKS AND PASEOS, SCHOOL STREET STAIRS RENOVATION City Project #c107711
adopted by the City Council of the City on ____________, 20__; and WHEREAS, said Principal is about to enter into the annexed agreement with the City as is required to furnish security for the faithful performance of said Agreement.

NOW, THEREFORE, we, the Principal, and , a
corporation organized and existing under and by virtue of the laws of the State of , as “Surety”, are held and firmly bound unto the City, in the sum of ($ ), such sum being not less than one
hundred percent (100%) of the estimated contract cost of the work, lawful money of the United States of America, to be paid to the City, for payment of which sum, well and truly to be paid, we hereby jointly and severally bind ourselves, our heirs, administrators, executors, successors and assigns, by these presents;
NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the above bound Principal, its heirs, executors, administrators, successors, or assigns will in all things abide by and well and truly keep and perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as therein provided, on his or her part, to be kept and performed at the time and in the manner therein specified, and in all respects according to the true intent and meaning, and will indemnify and save harmless the City, its officers and agents, and employees, as therein stipulated, then this obligation will become null and void, otherwise it will be and remain in full force and effect.

As a part of the obligation secured hereby and in addition to the face amount specified therefore, there will be included costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by the City.

As a condition precedent to the satisfactory completion of the said contract, an obligation in the amount of ($ ), being not less than ten
percent (10%) of the estimated contract cost, will remain in force for a period of one (1) year after the official acceptance of said work, during which time if the Principal, its heirs, executors, administrators, successors or assigns will fail to make full, complete and satisfactory repairs and replacements or totally protect the City of Santa Cruz from loss or damage made evident during said period of one (1) year from the date of official acceptance of said work and resulting from or caused by defective materials or faulty workmanship in the prosecution of the work done, the

13.27 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
24 above obligation in the sum of ($ ), will remain in full force and effect, otherwise the obligation will be discharged. However, notwithstanding any other provisions of this paragraph, the obligation for the surety hereunder will continue so long as any obligation of the Principal remains.

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the contract or to the work to be performed thereunder or the specifications will in any manner affect this obligation upon this bond, and it does hereby explicitly waive notice of any such changes, extensions of time, alterations, or additions to the terms of the contract or to the work to be performed thereunder, or to the specifications, and it further explicitly hereby waives its rights under California Civil Code § 2819.

IN WITNESS WHEREOF, the parties have executed this instrument under their seals this day of , 20___, and duly signed by its undersigned representative, pursuant to the authority of its governing body.

PRINCIPAL:

Firm name:

Printed name:

Signature: Date:

Title:

SURETY:

Firm name:

Printed name:

Signature: Date:

Title:

I hereby approve the form of the within bond:

City Attorney Date
(Note: Signatures of those executing for the surety as an Attorney-in-Fact must include a Notary Acknowledgement.)

13.28 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
25 Contractor’s Certificate Relating to Worker’s Compensation I, THE UNDERSIGNED, HEREBY CERTIFY that at all times during the performance of any work under contract with the City of Santa Cruz (check one of the following) for the

ED IIG PARKS AND PASEOS, SCHOOL STREET STAIRS RENOVATION City Project #c107711
□ I have and will maintain in full force and effect Workers’ Compensation Insurance, as required by Section 3700 of the Labor Code, for the performance of the Work. My Workers’ Compensation insurance carrier and policy number are:

Insurance Carrier:

Policy Number:
□ I have and will maintain in full force and effect and have attached hereto a Certificate of Consent to Self-Insure issued by the Director of Industrial Relations, as provided for by Section 3700 of the Labor Code, for the performance of the Work.

I declare under penalty of perjury that the foregoing is true and correct and executed on , 20 at , California.

CONTRACTOR
Name:

Title:

13.29 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
26 GENERAL CONDITIONS

1. Failure to Execute Contract
Failure of the lowest responsible and responsive bidder to execute the Contract and provide all acceptable bonds and documents as required by the Contract Documents as provided herein within ten (10) calendar days after such bidder has received the Contract for execution shall be just cause for the annulment of the award and the forfeiture of the bid security. This period of time shall be subject to extension for such further period as may be agreed upon in writing between the City and Bidder concerned.

2. Contractor's Insurance
Contractor will procure and maintain for the duration of the contract, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, its/his agents, representatives, employees or subcontractors.

A. CERTIFICATE REQUIREMENTS
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 Avenue, Suite 290, Santa Cruz, CA 95060
 Certificate will be signed by an authorized representative,  An endorsement will be provided to show the City and State of California, its officers, officials, employees, agents, and volunteers as additional insureds.

B. MINIMUM SCOPE AND LIMITS OF INSURANCE
Contractor acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. If Contractor 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 Contractor. 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): $2,000,000 PER OCCURRENCE; $2,000,000 AGGREGATE. Proof of coverage for $2 Million per occurrence 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. If a

13.30 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
27 general aggregate limit applies, either the general aggregate limit will apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit will be at least twice the required occurrence limit.
 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 Contractor has no employees, Contractor shall complete and sign a Workers’ Compensation Exemption Declaration and Release of Liability  CONTRACTORS’ POLLUTION LIABILITY and/or ASBESTOS POLLUTION LIABILITY (CPL) (if project involves environmental hazards) with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate.

1. If the services involve lead-based paint or asbestos identification / remediation, the Pollution Liability shall not contain lead-based paint or asbestos exclusions. If the services involve mold identification / remediation, the Pollution Liability shall not contain a mold exclusion and the definition of “Pollution” shall include microbial matter including mold.

2. The Automobile Liability policy shall be endorsed to include Transportation Pollution Liability insurance, covering hazardous materials to be transported by Contractor pursuant to the Agreement. This coverage may also be provided on the Contractors Pollution Liability policy.
 BUILDER’S RISK: (Course of Construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the project and no coinsurance penalty provisions.
 SURETY BONDS as described below.

C. OTHER INSURANCE PROVISIONS
The insurance policies are to comply with the following provisions:
 ADDITIONAL INSURED STATUS
The City and the CA Housing and Community Development, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds on the CGL, and automobile insurance (if transporting hazardous materials) policies with respect to

13.31 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
28 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. 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 insurance coverage will be primary insurance 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 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 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 affect 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
The excess/liability policies will provide similar coverage as the primary CGL policy with no new exclusions - Excess liability insurance must follow form the terms, conditions, definitions, and exclusions of the underlying CGL insurance. The excess/umbrella policy must also be written on a primary and noncontributory basis for an additional insured, and that it will apply before any other insurance that is available to such additional insured which covers that person or organization as a named insured, and we will not share with that other insurance.

The policy regarding Limits of Insurance regarding Aggregates must provide that the aggregate limits if applicable shall apply in the same manner as the aggregate limits shown in the Schedule of the Underlying Insurance.
 SELF-INSURED RETENTIONS
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.  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.

13.32 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
29  BUILDER’S RISK (COURSE OF CONSTRUCTION) INSURANCE
Contractor may submit evidence of Builder’s Risk insurance in the form of Course of Construction coverage. Such coverage shall name the City as a loss payee as their interest may appear.

If the project does not involve new or major reconstruction, at the option of the City, an Installation Floater may be acceptable. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the Work, including during transit, installation, and testing at the City’s site.
 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,CPL, and Automobile Policies 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
The Contractor shall include all Subcontractors as additional insured under the policies or shall furnish separate certificates and endorsements for each Subcontractor. Contractor shall require and verify that all Subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from Subcontractors.

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30 E. SURETY BONDS
Contractor shall provide the following Surety Bonds:

1. Bid Bond

2. Performance Bond

3. Payment Bond
The Payment Bond and the Performance Bond shall be in a sum equal to the contract price.

If the Performance Bond provides for a one-year warranty a separate Maintenance Bond is not necessary. If the warranty period specified in the contract is for longer than one year a Maintenance Bond equal to 10% of the contract price is required. Bonds shall be duly executed by a responsible corporate surety, authorized to issue such bonds in the State of California and secured through an authorized agent with an office in California.

F. 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 Contractor.

3. Claims
A. Definition of “Claim”.

All provisions of California Public Contract Code Section 9204 are incorporated into and form an integral part of the Contract Documents for this Project. The City and Contractor shall comply with California Public Contract Code Section 9204 when applicable.

As used herein, the term “Claim” means a separate written demand or assertion by Contractor sent by registered mail or certified mail, with return receipt requested, for one or more of the following arising out of or related to the Contract Documents or the performance of the Work: (A) a time extension, including, without limitation, for relief from damages or penalties for delay assessed by the City under the Contract; (B) payment by the City of money or damages arising from work done by, or on behalf of, the Contractor pursuant to the Contract and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled; (C) payment of an amount that is disputed by the City, as defined in Public Contract Code Section 9204(c).

A Claim does not include, and the procedures for processing of Contractor Claims do not apply to the following:
(i) Claims respecting penalties for forfeitures prescribed by statute or regulation which a government agency is specifically authorized to administer, settle, or determine (other than penalties for delay assessed by the City under the Contract).

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31 (ii) Claims respecting personal injury, death, reimbursement, or other compensation arising out of or resulting from liability for personal injury or death. (iii) False claims liability under California Government Code Section 12650, et seq. (iv) Defects in the Work first discovered by City after final payment by City to Contractor. (v) Claims respecting stop notices.
(vi) The right of City to specific performance or injunctive relief to compel performance of any provision of the Contract Documents or for other City claims against the Contractor.

B. Time Period for Submission of Claim.

If a Claim involves an adjustment to the Contract Sum or to the Contract Time due to Extra Work, then the Claim arises upon issuance of a decision denying, in whole or in part, Contractor’s Change Order Request. All other Claims arise when Contractor discovers, or should have discovered, the circumstances giving rise to the Claim (even if Contractor has not yet been damaged or delayed).

A Claim that does not involve an adjustment to the Contract Sum or Contract Time for Extra Work may be asserted if, and only if, Contractor gives written notice of intent to file the Claim to the City within five (5) calendar days of the date the Claim arises. A written notice of intent to file a Claim shall be valid if, and only if, it identifies the event or condition giving rise to the Claim, states its probable effect, if any, with respect to Contractor’s entitlement to an adjustment of the Contract Sum or Contract Time, and complies with the requirements of Section 3(C), below.

All Claims and supporting documentation and certifications must be filed as soon as possible, but no later than thirty (30) calendar days after the Claim arises. No Claims shall be filed after the final payment has been issued unless otherwise permitted by law.

C. Reasonable Documentation.

The Claim must include the following:
(i) A statement that it is a Claim and a request for a decision on the Claim; (ii) A detailed factual narrative of events fully describing the nature and circumstances giving rise to the Claim, including but not limited to, necessary dates, locations, and items of Work effected and reasonable documentation to support the Claim; (iii) A certification, executed by each Subcontractor claiming not less than 5% of the total monetary amount sought by the Claim, that the Subcontractor’s portion of the Claim is filed in good faith.
(iv) If the Claim involves an adjustment to the Contract Sum or Contract Time for Extra Work, a statement demonstrating that a Change Order Request was submitted in a timely manner as required by the Contract Documents. If the Claim does not involve an adjustment to the Contract Sum or Contract Time for Extra Work, a statement demonstrating that a notice of intent to file the Claim was submitted in a timely manner as required by the Contract Documents.

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32 (v) A detailed justification for any remedy or relief sought by the Claim, including, without limitation:
a. A detailed cost breakdown in the form required for submittal of Change Order Requests, including an estimate of the costs incurred or to be incurred. To the extent costs have been incurred when the Claim is submitted, the Claim must include actual cost records (including, without limitation, payroll records, material and rental invoices, and the like) demonstrating that costs claimed have been incurred.

To the extent costs have not yet been incurred at the time of Claim submittal, actual cost records must be submitted on a current basis not less than once a month during any periods costs are incurred.
b. Copies of actual job cost records demonstrating that the costs have been incurred. c. If the Claim is based on an error, omission, conflict, or ambiguity in the Contract Documents: (1) a sworn statement by Contractor and any Subcontractors or Subsubcontractors involved in the Claim, to the effect that the error, omission, conflict, or ambiguity was not discovered prior to submission of the Bid, or (2) if not discovered, a statement demonstrating that the error, omission, conflict, or ambiguity could not have been discovered by Contractor, its Subcontractors or Subsubcontractors in exercise of the degree of care required of them under the Contract Documents for review of the Bid Documents prior to submission of the Bid. (vi) If the Claim involves a request for adjustment of the Contract Time, written documentation demonstrating that Contractor has complied with the requirements of the Contract Documents pertaining to proving the right to an extension of time and demonstrating that Contractor is entitled to an extension of time under the Contract Documents.
(vii) A written certification signed by a responsible managing officer of Contractor’s organization, who has the authority to sign subcontracts and purchase orders on behalf of Contractor and who has personally investigated and confirmed the truth and accuracy of the matters set forth in such certification, in the following form:
“I hereby certify under penalty of perjury under the laws of the State of California that I am a managing officer of (Contractor’s name) and that I have reviewed the Claim presented herewith on Contractor’s behalf and/or on behalf of (Subcontractor's/Subsubcontractor’s name(s)) and that the following statements are true and correct. a. The facts alleged in or that form the basis for the Claim are true and accurate. b. The Claim is submitted in good faith.
c. The Change Order Request was timely submitted, as required by the Contract Documents.
d. Contractor does not know of any facts or circumstances, not alleged in the Claim, that by reason of their not being alleged render any fact or statement alleged in the Claim materially misleading.
e. Contractor has, with respect to any request for money or damages alleged in or that forms the basis for the Claim, reviewed the job cost records (including those maintained by Contractor and by any Subcontractor or Sub-subcontractor, of any Tier, that is asserting all or any portion of the Claim) and confirmed with reasonable

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33 certainty that the Losses or damages suffered by Contractor and/or such Subcontractor or Sub-subcontractor were in fact suffered in the amounts and for the reasons alleged in the Claim.
f. Contractor has, with respect to any request for extension of time or claim of Delay, disruption, hindrance or interference alleged in or that forms the basis for the Claim, reviewed the job schedules (including those maintained by Contractor and by any Subcontractor or Sub-subcontractor, of any Tier, that is asserting all or any portion of the Claim) and confirmed on an event-by-event basis that the delays or disruption suffered by Contractor and /or such Subcontractor or Sub-subcontractor were in fact experienced for the durations, in the manner, and with the consequent effects on the time and/or sequence of performance of the Work, as alleged in the Claim; and.
g. Contractor has not received payment from City for, nor has Contractor previously released City from, any portion of the Claim.

Signature: ___________________________
Name: ______________________________
Title: _______________________________
Company: ___________________________
Date: _______________________________
D. Assertion of Claims.
(i) Notwithstanding the making of any Claim or the existence of any dispute regarding any Claim, unless otherwise directed by City, Contractor shall not delay, slow, or stop performance of the Work, but shall diligently proceed with performance in accordance with the Contract Documents and City will continue to make payments as required by the Contract Documents.
(ii) All Claims and supporting documentation must be sent to the City by registered mail or certified mail with return receipt requested.
(iii) Strict compliance with these requirements is conditions precedent to Contractor’s right to an informal conference to meet and confer to resolve a Claim, mediate a Claim, or arbitrate or litigate a Claim. The failure of Contractor to strictly comply with the requirements of this Section constitutes a failure by Contractor to exhaust its administrative remedies with the City, thereby denying any court or arbitration panel of jurisdiction to adjudicate the Claim.
(iv) There shall be no waiver of any of the rights set forth in California Public Contract Code Section 9204; provided, however, that (i) upon receipt of a Claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (ii) the City may prescribe reasonable Change Order, Claim, and Dispute Resolution Procedures and requirements in addition to the provisions of this section, so long as the contractual

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34 provisions do not conflict with or otherwise the timeframes and procedures set forth in Public Contract Code Section 9204.
(v) The City’s right to commence the Contract dispute resolution process shall arise at any time following the City’s actual discovery of the circumstances giving rise to the dispute. Nothing herein shall preclude the City from asserting disputes in response to a Claim asserted by Contractor.

E. Decision of City on Claims.
(i) Pursuant to Public Contracting Code section 9204(d), upon receipt of a Claim, the City shall conduct a reasonable review of the claim and, within 45 days, shall provide the Contractor a written statement identifying what portion of the Claim is disputed and what portion is undisputed. Upon receipt of the Claim, the Owner’s Representative, City, and Contractor may, by mutual agreement, extend the time period provided in this Section. If City determines that additional supporting data are necessary to fully evaluate a Claim, City will request such additional supporting data in writing. Such data shall be furnished by Contractor to City no later than 10 days after the date of such request. Any payment due to Contractor by City on an undisputed portion of the Claim shall be processed and made within 60 days after the written statement is issued. (ii) If the City needs approval from its governing body to provide the Contractor with a written statement identifying the disputed portion and the undisputed portion of the Claim, and the governing body does not meet within the forty-five (45) days or within the mutually agreed to extension of time following receipt of a Claim sent by registered mail or certified mail, return receipt requested, the City shall have up to three (3) days following the next duly publicly noticed meeting of the governing body after the forty-five (45) day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.
(iii)Failure by the City to respond to a Claim from Contractor within the time periods described in this Section 3 and California Public Contract Code Section 9204 or to otherwise meet the time requirements shall result in the Claim being deemed rejected in its entirety. A Claim that is denied by reason of the City's failure to have responded to a Claim, or its failure to otherwise meet the time requirements of this Article 4.2 and California Public Contract Code Section 9204, shall not constitute an adverse finding with regard to the merits of the Claim or the responsibility or qualifications of the Contractor. (iv)Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement. (v) Amounts not paid in a timely manner as required by this Section shall bear interest at 7 percent per annum, pursuant to Public Contracting Code section 9204(d)(4).

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35 (vi)If a subcontractor or a lower tier subcontractor lacks standing to assert a Claim against the City because privity of contract does not exist, the Contractor may present to the City a Claim on behalf of a subcontractor or a lower tier subcontractor. A subcontractor may request in writing, either on its own behalf or on behalf of a lower tier subcontractor, that the Contractor present a Claim for work which has been performed by the subcontractor or lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting the Claim be presented to the City shall furnish reasonable documentation supporting the Claim. Within 45 days of receipt of this written request, the Contractor shall notify the subcontractor in writing as to whether the Contractor presented the Claim to the City and, if the Contractor did not present the Claim, provide the subcontractor with a statement of the reasons for not having done so.

F. Meet and Confer Conference.

If the Contractor disputes the City's written response, or if the City fails to respond to a Claim issued pursuant to Section 3(E) within the time prescribed, the Contractor may demand in writing an informal conference to meet and confer for settlement of the issue in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the City shall schedule a meet and confer conference within 30 days for settlement of the dispute.

G. Mediation.
(i) Within ten (10) business days following the conclusion of the meet and confer conference, specified in Section 3(F), if the Claim or any portion of the Claim remains in dispute, the City shall provide the Contractor a written statement identifying the portion of the Claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the Claim shall be processed and made within sixty (60) days after the City issues its written statement. Any disputed portion of the Claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and the Contractor shall mutually agree to a mediator within ten (10) business days after the disputed portion of the Claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the Claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the Claim remaining in dispute shall be subject to applicable procedures outside this section.
(ii) For purposes of this Section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation, or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.

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36 (iii)Unless otherwise agreed to by the City and the Contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Public Contract Code Section 20104.4 to mediate after litigation has been commenced.

H. Arbitration and Litigation.
(i) In the event mediation does not resolve the parties' dispute, the parties shall comply with the Arbitration provisions set forth in Public Contract Code Sections 10240 – 1024.13. (ii) Unless the City and Contractor otherwise agree in writing, the arbitration decision shall be binding upon the parties, made under and in accordance with the laws of the State of California, supported by substantial evidence, and in writing. If the total of all Claims or cross Claims submitted to arbitration is in excess of $50,000, the award shall contain the basis for the decision, findings of fact, and conclusions of law. Any arbitration award shall be subject to confirmation, vacation, or correction under the procedures and on the grounds specified in the California Code of Civil Procedure including, without limitation Section 1296. The expenses and fees of the arbitrators and the administrative fees of the AAA shall be divided among the parties equally. Each party shall pay its own counsel fees, witness fees, and other expenses incurred for its own benefit. (iii)The City may, but is not required, to assert as a counterclaim any matter arising out of the claims asserted by Contractor in the arbitration. City’s failure to assert any such counterclaim in an arbitration shall be without prejudice to the City’s right to assert the counterclaim in litigation or other proceeding.
(iv)Any litigation shall be filed in the Superior Court of the State of California for the County of Santa Cruz.

I. Waiver.

A waiver of or failure by the City to enforce any requirement in this Section 3 in connection with any Claim shall not constitute a waiver of and shall not preclude the City from enforcing such requirements in connection with any other Claims.

The Contractor agrees and understands that no oral approval, either express or implied, of any Claim shall be binding upon the City unless and until such approval is ratified by execution of a written Change Order.

4. Time of Completion
Attention is directed to the provisions in Section 8 (Commencement of Work, Time of Completion and Liquidated Damages) of the Standard Specifications and these General Conditions.

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37 The Contractor shall promptly start the work and diligently prosecute the work to completion before the expiration of Forty-five (45) working days after the date of the Notice to Proceed.

Full compensation for any additional costs occasioned by compliance with the provisions in this section shall be considered as included in the prices paid for the various contract items of work and no additional compensation will be allowed therefore.

5. Failure to Complete the Work on Time (Liquidated Damages) All time limits stated in the Contract Documents are of the essence. If the work is not completed by Contractor in the time specified in the Contract Documents, or within any period of extension authorized in writing by the City, it is understood that City will suffer damage; and it being impracticable and infeasible to determine the amount of actual damage, it is agreed that Contractor will pay the City, as fixed and liquidated damages, and not as a penalty, the sum of Five Hundred ($500) dollars for each calendar day of delay until the work is completed and accepted, and Contractor and his/her surety will be liable for the amount thereof; provided, however, that Contractor shall not be charged liquidated damages because of any delays in the completion of the work due to unforeseeable causes beyond the control and without the fault or negligence of Contractor.

Contractor shall, within ten (10) days from the beginning of any such delay, notify City in writing of the cause of the delay; whereupon City shall ascertain the facts and the extent of the delay and extend the time for completing the work when, in its judgment, the findings of fact justify such an extension. City's finding of fact thereon shall be final and conclusive on the parties hereto.

6. Existing Facilities
Prospective bidders shall visit the work site and determine for themselves the existing conditions at the Project site, including location of utilities. The Contractor shall take precaution so as to avoid damaging existing public facilities and private improvements.

In accordance with California Government Code Section 4215, the City assumes the responsibility for the timely removal, relocation, or protection of existing main or trunk line utility facilities located on the Project site if such utilities are not identified in the plans and specifications made a part of the invitation for bids. The City will compensate the Contractor for the costs of locating, repairing damage not due to the Contractor’s failure to exercise reasonable care, and removing or relocating existing main or trunk line utility facilities located at the Project site and not identified with reasonable accuracy in plans and specifications made a part of the invitation for bids. The City will also compensate the Contractor for the cost of equipment on the Project necessarily idled during such work. The Contractor will not be assessed liquidated damages for delay in completion of the project, when such delay was caused by the City’s or utility owner’s failure to provide for removal or relocation of such main or trunk line utility facilities.

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38 Nothing in this provision or the Contract Documents will be deemed to require the City to indicate the presence of existing service laterals or appurtenances whenever the presence of such utilities on the Work site can be inferred from the presence of other visible facilities, such as buildings, meter, and junction boxes, on or adjacent to the Project site; provided, however, that nothing in this provision or the Contract Documents shall relieve the City from identifying main or trunk lines in the plans and specifications made a part of the invitation for bids.

Nothing in this provision or the Contract Documents will preclude the City from pursuing any appropriate remedy against the utility for delays which are the responsibility of the utility.

Nothing in this provision or the Contract Documents will be construed to relieve the utility from any obligation as required either by law or by contract to pay the cost of removal or relocation of existing utility facilities.

If the Contractor while performing the Work discovers utility facilities not identified by the City in the plans and specifications made a part of the invitation for bids, the Contractor must immediately notify the City and utility in writing.

Either the City or the utility, whichever owns existing main or trunk line utility facilities located on the Work site, shall have sole discretion to effect repairs or relocation work or to permit the Contractor to perform such repairs or relocation work at a reasonable price The Contractor will be required to work around public utility facilities that are to remain in place within the construction area or that are to be relocated and relocation operations have not been completed, and (s)he will be held liable to the owners of such facilities for any damage or interference with service resulting from his/her operations.

The exact locations of underground facilities and improvements within the construction area shall be ascertained by the Contractor before using equipment that may damage or interfere with service resulting from his/her operations. It shall be the Contractor’s responsibility to notify public utilities that (s)he is working in the vicinity of their facilities.

Other forces may be engaged in moving or reconstructing utility facilities or maintaining service of utility facilities, and the Contractor shall cooperate with such forces and conduct his/her operation in such a manner as to avoid unnecessary delay or hindrance to the work being performed by such other forces.

The City owns, operates, and maintains its own water distribution and sewer collection systems and will cooperate with the Contractor insofar as it is reasonable and practicable. Water, as required for City projects, may be obtained at City-owned fire hydrants provided that application is made to the Water Department and permission obtained with provision for payment.

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39 Full compensation for conforming to the requirements of this article, not otherwise provided for, shall be considered as included in the prices paid for the various contract items of work and no additional allowance will be made therefor.

All underground utilities including but not limited to water service, sewer laterals, electrical service, and gas service broken or disturbed by the Contractor’s crew will be replaced or repaired by the Contractor or Utility Company at the Contractor’s expense.

The Contractor shall consult with utilities and notify them of any relocation or protection in sufficient time to allow the utilities to perform the work in a complete and orderly manner.

7. Water Pollution Control Program (WPCP) and/or Storm Water Pollution Prevention Program (SWPPP)
Water pollution control work and storm water pollution prevention work shall conform to Chapter 4 of the Best Management Practices Manual for the City’s Storm Water Management Program available on the City of Santa Cruz website at:
http://www.cityofsantacruz.com/government/city-departments/public-works/stormwater/bestmanagement-practices.

The Contractor shall take all necessary precautions to prevent any leakage or sewage spills of any kind onto adjacent property, public or private roadway, drainage systems, and waterways. The Contractor shall be liable for any and all clean-up costs or any fines that may be levied including those by the Regional Water Quality Control Board (RWCQB) against the City, in the event that such leakage or spill occurs. The Contractor shall also be responsible for reporting any and all spill to the appropriate regulatory agencies, including the RWCQB and the Santa Cruz County Health Department.

Full compensation for conforming to the requirements of “WATER POLLUTION CONTROL” including furnishing all labor, materials, equipment, tools, and incidentals shall be included in the various bid item prices and no additional compensation will be allowed.

8. Maintenance and Clean-Up
Throughout the construction period, the Contractor shall keep the Project site in a neat and clean condition, shall dispose of any surplus materials in an approved manner off the site, and maintain proper housekeeping practices to the satisfaction of the Engineer.

When any material is to be disposed of outside of the easement or street or highway right-of-way, the Contractor shall first obtain written permission from the owner on whose property the disposal is to be made. Disposal must conform to grading ordinance of the jurisdiction in which the Work is performed. Location of disposal sites shall be submitted to the Engineer for review and subject to his/her approval.

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40 Upon completion of the Work, and prior to requesting final inspection, the Contractor shall thoroughly clean the site of the Work of all rubbish, excess materials, falsework, temporary structures, and equipment, and all portions of the Work shall be left in a neat and orderly condition.

The final inspection, acceptance, and final payment will not be made until this has been accomplished.

9. State of California Department of Transportation Standard Specifications All Work under the Contract shall conform to the applicable requirements of the most recent published State of California Department of Transportation Standard Specifications. Said State Specifications are to be considered an integral part of the specifications for all purposes related to this Contract.

Definitions of terms not defined in City Standard Specifications shall be as defined in the 2022 State Standard Specifications, available at:
https://dot.ca.gov/-/media/dot-media/programs/design/documents/2022_stdspecs-a11y.pdf

10. Notification of Project Commencement
The Contractor shall notify the City Engineer at least five (5) business days prior to mobilizing to the Project site.

11. Progress Schedule
Progress schedules will be required for this project. The Contractor shall prepare a project schedule and submit it to the Engineer for his/her review and approval within five (5) working days of the beginning of Work or at the preconstruction meeting (whichever comes first). Contractor will not be allowed to begin work until the progress schedule has been approved by the Engineer. Work performed without and approved schedule will be considered unauthorized work as specified in Section 5-1.30, “Noncompliant and Unauthorized Work,” of the State Standard Specifications. Work shall be conducted between the hours of 8 AM and 5 PM, Monday to Friday, except with the permission of the Director, except in case of any emergency. The Contractor may request a 7 AM start and/or weekend work in writing.

12. Progress and Final Payment
Progress and final payments will be made in accordance with Section 9 of the Standard Specifications, except as herein modified.

Payments are made every two weeks by the City Finance Department. The Contractor may receive partial payments only once for any month. A listing of payment cut-off dates is available upon request.

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41 13. Extra Work
Extra work shall conform to the provisions in Section 9 of the California Standard Specifications and to these General Provisions.

Any alleged extra work or delays shall be given in writing within 24 hours of any occurrence to the Project Engineer or Inspector. The Contractor shall submit to the Project Engineer or Inspector an extra work report for each day the extra work is performed. The report shall be submitted prior to the start of work the following day. The report shall include: (1) a description of the extra work; (2) the quantity, classification, and working hours of the extra work labor force; (3) the type of equipment, code number, and hours of operation of the equipment towards extra work; and (4) the quantity and type of materials used for extra work.

14. Local Hiring Compliance Forms
Section intentionally omitted.

15. Third Party Claims
Both parties shall timely notify the other of the receipt of any third-party claim relating to the Contract or Project. The City shall be entitled to recover its reasonable costs incurred in providing such notice.

16. 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, 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 Contract.

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

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42 18. Conflicts of Interest
Contractor owes City a duty of undivided loyalty in performing the Work and services under this Contract. Contractor covenants (on behalf of Contractor and its 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 Contract.

Contractor acknowledges and agrees to comply with applicable provisions of conflict-of-interest law and regulations, including the Political Reform Act, Section 1090 of the Government Code, and the City’s conflict of interest code. Contractor will immediately advise City if Contractor learns of a conflicting financial interest of Contractor during the term of this Contract.

19. City Property
Unless otherwise provided herein, Contractor 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 Contractor waives and relinquishes all claims to copyright or other intellectual property rights in favor of City. Any work product related to this Contract shall be confidential, not to be used by the Contractor on other projects or disclosed to any third party, except by agreement in writing by the City, or except as otherwise provided herein.

20. 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. Contractor must comply with all applicable Federal and State and local equal employment opportunity laws and regulations, and Contractor is responsible for ensuring that effective policies and procedures concerning the prevention of abusive conduct, discrimination, harassment, and retaliation exist in Contractor’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 https://www.santacruzca.gov/Government/City-Departments/Human-Resources/EqualEmployment-Opportunity-EEO.

21. Termination
A. City May Terminate for Cause
The occurrence of any one or more of the following events will constitute a default by Contractor and justify termination for cause:

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SCHOOL STREET STAIRS RENOVATION
Project #c102711
43 - Contractor’s persistent failure to perform the Work in accordance with the Contract Documents (including, but not limited to, failure to supply sufficient skilled workers or suitable materials or equipment, or failure to adhere to the Progress Schedule); - Failure of Contractor to perform or otherwise comply with a term of the Contract Documents;
- Contractor’s disregard of Laws or Regulations of any public body having jurisdiction; or Contractor’s repeated disregard of the authority of City or Engineer.

If one or more of the events identified above occurs, then after giving Contractor (and any surety) at least fourteen (14) calendar days’ written notice of City’s intent to terminate the Contract, City may proceed to:
- declare Contractor to be in default, and give Contractor (and any surety) written notice that the Contract is terminated; and
- enforce the rights available to City under any applicable performance bond.

Subject to the terms and operation of any applicable performance bond, if City has terminated the Contract for cause, City may exclude Contractor from the Site, take possession of the Work and all materials and equipment stored at the Site for which City has paid Contractor, including materials and equipment stored elsewhere, and complete the Work as City may deem expedient.

City may proceed with termination of the Contract under this Section, unless Contractor within seven (7) days of the date of the notice of intent to terminate begins to correct Contractor’s failure to perform and proceeds diligently to cure such failure.

If the contract is terminated as provided herein, Contractor shall not be entitled to receive any further payment. If the unpaid balance of the Contract Price exceeds the cost to complete the Work, including all related claims, costs, losses, and damages (including but not limited to all fees and charges of engineers, architects, attorneys, and other professionals) sustained by City, such excess will be paid to Contractor. If the cost to complete the Work including such related claims, costs, losses, and damages exceeds such unpaid balance, Contractor shall pay the difference to City within thirty (30) calendar days of City’s invoice to Contractor. Such claims, costs, losses, and damages incurred by City will be reviewed as to reasonableness. When exercising any rights or remedies under this paragraph, City shall not be required to obtain the lowest price for the Work performed.

Where Contractor’s services have been so terminated by City, the termination will not affect any rights or remedies of City against Contractor then existing or which may thereafter accrue, or any rights or remedies of City against Contractor or any surety under any payment bond or performance bond. Any retention or payment of money due Contractor by City will not release Contractor from liability.

B. City May Terminate for Convenience
Upon fourteen (14) calendar days’ written notice to Contractor, the City may, without cause and without prejudice to any other right or remedy of City, terminate the Contract. In such case,

13.47 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
44 Contractor shall submit a claim for payment including required certifications as required in the Contract Documents within six (6) months of the effective date of termination. Subject to verification to City’s satisfaction, Contractor will be eligible to be paid for (without duplication of any items):
- completed and acceptable Work executed in accordance with the Contract Documents prior to the effective date of termination;
- expenses sustained prior to the effective date of termination in performing services and furnishing labor, materials, or equipment as required by the Contract Documents in connection with uncompleted Work; and
- other reasonable expenses directly attributable to termination, including costs incurred to prepare a termination for convenience cost proposal.

City shall not be liable for costs incurred by Contractor, or any Subcontractor or supplier, after receipt of a notice of termination.

City shall deduct from Contractor any advance payments made to Contractor related to the terminated portion of the Contract Documents, any claim which City may have against Contractor in connection with the Contract Documents, and any other applicable costs.

C. Contractor May Stop Work or Terminate
If, through no act or fault of Contractor, or Subcontractor, or any employee or agent of Contractor or any Subcontractor, (1) the Work is suspended for more than 180 consecutive days by City or under an order of court or other public authority, or (2) the City fails to act on an application for payment within 30 days after it is submitted by Contractor, or (3) City fails for sixty (60) calendar days to pay Contractor any undisputed sum finally determined to be due, then Contractor may, upon thirty (30) days’ written notice to City, and provided City does not remedy such suspension or failure to cure within fourteen (14) days of the default, terminate the contract and recover payment for Work actually performed.

In lieu of terminating the Contract and without prejudice to any other right or remedy, if City has failed to act on an application for payment by Contractor within thirty (30) days after it is submitted, or City has failed for sixty (60) days to pay Contractor any undisputed sum finally determined to be due, Contractor may, fourteen (14) days after written notice to City, stop the Work until payment is made of all such amounts due Contractor, including interest thereon. The provisions of this paragraph are not intended to preclude Contractor from submitting a Change Proposal for an adjustment in Contract Price or Contract Times or otherwise for expenses or damage directly attributable to Contractor’s stopping the Work as permitted by this paragraph. [End of Section]

13.48 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
45 TECHNICAL SPECIFICATIONS

1. Scope of Works
The work to be done consists, in general, of:

Repair (including grinding and patching) and seal concrete stairs, purchase and mechanically fasten cast aluminum stair nosings, install mosaic tile (provided by others), and grout stair nosings and tile.

There are 53 each of approximately 6-foot long and 20 each of approximately 5- long stairs.

The stairs are not uniform vertically and horizontally.

The site must always be secured from pedestrian access until the work is fully accepted.

The Contractor shall submit a construction schedule for the work. The City shall have review authority over said schedule.

The contractor shall provide all labor, materials, tools, equipment, and services required for the complete and proper execution of all the work as shown on the drawings and/or outlined in these specifications. Work shall include items not specifically mentioned herein or noted on the plans but necessary to make a complete working installation of all systems shown or described herein.

2. Notification of Construction and Coordination
The Contractor shall notify the engineer at least five (5) working days prior to commencing work. The Contractor shall notify immediately adjacent residents and businesses on both sides of the stairs (1) week and forty-eight (48) hours prior to work. Notification letters shall include a description of work, date and time of work, expected disturbances (noise, dust, etc.), contact information for Contractor and City Project Engineer..

Advance notice signs for the proposed work shall be furnished and installed on barricades at the top and bottom of the stairs by the Contractor at least five (5) working days prior to any construction activity, advising them of the scheduled dates for the proposed work.

Businesses/residents should be advised as soon as possible of any changes in proposed work schedules to minimize any unnecessary inconvenience.

The Contractor shall notify all emergency and refuse services of the pending work, at least five (5) working days prior to the day the Contractor’s forces move on the project site, unless otherwise approved in writing by the Engineer.

13.49 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
46 Contractor shall provide the Engineer with written confirmation of notices being sent prior to commencing the work covered by the notice.
 Santa Cruz Police Department
 City of Santa Cruz Fire Department
 Santa Cruz Resource Recovery Services

3. Water Pollution Control
Water pollution control work shall conform to Chapter 4 of the Best Management Practices Manual for the City’s Storm Water Management Program available on the City of Santa Cruz website at:
http://www.cityofsantacruz.com/government/city-departments/public-works/stormwater/bestmanagement-practices Payment for Water Pollution Control and all costs therefore shall be included in the various contract unit prices and no additional allowance will be made therefore.

4. Mobilization and Demobilization
This section governs the mobilization and demobilization of personnel, equipment, and materials at the work site for contract items that will be performed by the Contractor. Mobilization and demobilization shall include but not be limited to the movement and staging of equipment, personnel, materials, supplies, etc. to and from the work site.

It is the Contractor’s responsibility to secure a staging area for contract work, and any associated costs are included in the various contract prices paid, with no additional compensation allowed therefor. The Contractor is required to obtain and show proof of all permits required by the State and/or local agencies for use of the staging area. City property may not be used as a staging area.

The Contractor’s proposed staging site(s) shall be approved by the Engineer. The staging area(s) shall be maintained throughout the duration of the project such that it is not construed as visual blight in the opinion of the Engineer. All adjoining streets, sidewalks and gutters shall be swept free of construction materials tracked onto them at the end of each day. Failure to do so will result in City forces cleaning the area at the Contractor’s expense. The City of Santa Cruz labor rate to be used shall be $150 per hour per person.

Full compensation for conforming to the requirements of this section shall be considered as included in the prices paid for the various contract items of work and no additional compensation will be allowed therefore.

13.50 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
47 5. Dust and Sound Control
Dust Control:

The Contractor's attention is directed to Section 14-9, "Air Quality,” and Section 14-11.04 “Dust Control,” of the Caltrans Standard Specifications. The Contractor shall be responsible for dust control within the project limits. The Contractor shall diligently control dust resulting from his/her operations and from public traffic passing through the work area by the application of water and/or dust palliative. Dust palliative shall conform to Section 18, "Dust Palliative," of the Caltrans Standard Specifications.

The Contractor shall use equipment that will generate the least amount of dust.

The Contractor shall provide dust control at all times including Saturdays, Sundays, and holidays as ordered by the Engineer. Whenever the Contractor, in the opinion of the Engineer, shall appear negligent in controlling dust, the Engineer may direct attention to the existence of a dust hazard and instruct the Contractor to immediately alleviate the dust hazard. The Contractor shall be responsible for any damage caused by dust generated as a result of his/her operations.

Full compensation for complying with the above provisions shall be considered as included in the contract prices paid for the various items of work and no separate payment will be made therefore.

Sound Control:

Sound control shall conform to the provisions in Section 14-8.02, “Noise Control”, of the Caltrans Specifications and these Contract Specifications. No construction is permitted outside the hours stated in Section 23-1.08 of these Contract Specifications, or on any observed City holiday. Exception to this provision shall be “Emergency construction and repair that is necessary for protection of life and property” and “Operation to construct and maintain facilities within the public right-of-way as deemed necessary by the Engineer”.

No engines of construction equipment shall be started prior to 8:00 A.M. unless specifically permitted by the Engineer in writing. All equipment on the job or related to the job, including but not limited to trucks, transit mixers or transient equipment that may or may not be owned by the Contractor shall be properly maintained. The use of loud sound signals shall be avoided in favor of light warnings except those required by safety laws or regulations for the protection of personnel. The Director of Public Works may determine that the project has the potential to disrupt traffic and that this disruption could be alleviated by authorizing construction work to commence at 7:00 a.m. or that due to time constraints on project completion it is necessary to allow the contractor to begin work at 7:00 a.m.

Full compensation for conforming to the requirements of this section shall be considered as included in the prices paid for the various contract items of work and no additional compensation will be allowed therefore.

13.51 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
48 6. Traffic Control
The Contractor’s attention is directed to Article 7.16 of the City of Santa Cruz Department of Public Works Standard Specifications. The Contractor shall not begin work prior to 8:00 AM unless written approval is received by the City Engineer. The Contractor shall provide for the safe movement of traffic with as little inconvenience to the public as possible. The Contractor shall have sidewalks completely open to two-way traffic by 5:00 PM daily. The streets shall remain open for two-way traffic unless temporary closing and detouring is specifically authorized in writing by the engineer.

When it is necessary to close the sidewalk, the Contractor shall install signs informing pedestrians that the sidewalk is closed. The Contractor shall assist in directing pedestrians to a safe alternate pedestrian route around the work area and shall provide. “Sidewalk Closed and “Cross Here” signs shall be installed at River Street, Bulkhead and Water Street.

The Contractor shall clean the street and sidewalk, and keep all lanes, parking lanes, open for traffic for weekends and evenings throughout the construction period. The Contractor shall furnish and place temporary construction area signs required for the direction of public traffic through or around the work during construction.

During construction operations, the Contractor shall meet the following conditions:

1. Personal vehicles of the Contractor’s employees shall not be parked within the right-of-way at any time, including any section closed to public traffic.

2. Access for emergency vehicles to adjoining properties shall be always maintained during construction.

3. Vehicular and pedestrian access to businesses and homes shall be maintained.

At locations where parking will be prohibited for staging, the Contractor shall place “No Parking” signs on parking meters at least 72 hours prior to parking restrictions and shall be setup as approved by the Engineer. The “No Parking” signs shall clearly show the dates and times of proposed parking restrictions.

Contractor shall notify, in writing, businesses, residents, and the engineer, 24 hours in advance, whenever s/he must obstruct access to businesses or homes, and s/he shall, through thoughtful planning, restore that access as soon as possible. Contractor shall consult with the inspector on the project and with affected business operators in advance of his/her obstructing of vehicular or foot traffic to the properties to be affected, so that the best time for this obstruction can be determined by all concerned.

Payment for Traffic Control and all costs therefore shall be included in the contract unit price paid per LUMP SUM for “Traffic Control.”

13.52 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
49 7. Existing Utilities
The work performed in connection with various existing highway facilities shall conform to the provisions of Section 5.67 “Coordination with Utilities,” Section 5.27 “Laws to be Observed,” and Section 5.40 “Preservation of Property” of the General Conditions; and Section 17-2 “Clearing and Grubbing,” Section 15 “Existing Facilities,” of the Caltrans Standard Specifications, these Contract Specifications, and as directed by the Engineer.

The Contractor shall document pre-construction conditions at all points around the work area.

This documentation shall consist of notes, still photographs, and video, a digital copy of such data shall be submitted to the Engineer. Special efforts shall be made to document the existing conditions at all buildings and private improvements not to be disturbed.

The Contractor shall reference, preserve and protect all utilities, manholes, valve covers, survey monuments and recorded survey points including but not limited to curb drains and metal pins prior to construction. Upon completion of the work, all manholes, survey monuments and water valve covers shall be thoroughly cleaned of any construction debris resulting from the Contractor’s operations.

At the end of every work day, construction debris of any kind shall be swept from all surfaces within the areas affected by the Contractor’s operations.

The Contractor shall cooperate with and allow representatives and/or contractors of the various agencies and companies that are impacted by the work, to have access to their facilities. Any delays caused shall not count towards the Contractors’ “working days”, unless a written Change Order has been approved by the Engineer.

Full compensation for conforming to the requirements of this section shall be considered as included in the prices paid for the various contract items of work and no additional compensation will be allowed therefore.

8.Tree Protection
This project includes work relatively adjacent to street trees on North Pacific Ave. It is the responsibility of the Contractor to conduct his/her operations around said trees and canopy such that the work is accomplished without damage to trees. The Contractor may, with the Engineer’s approval, trim trees in order to better facilitate his/her construction operations if needed. No trimming of trees is allowed without specific written permission from the Engineer AND/OR THE City’s Urban Forester. Any trimming that may be required must be approved at least two (2) working days in advance.

13.53 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
50 9. Final Payment
Payment for all items of work at the unit or lump sum price shall be considered as full compensation for furnishing all labor, materials, tools, equipment, and incidentals necessary to complete work, and no additional allowance will be made therefore.

10. Submittals
Shop drawings shall be submitted for review in the following areas of work:

1. Project Schedule

2. Staging Plan

3. Notifications to Residences and Businesses

4. Storm Water Pollution Prevention Plan

6. Concrete Stair Repair material

7. Concrete Stair Sealer

8. Cast Aluminum Stair Nosings

9. Stair Nosing Fasteners

10. Mortar for Stair Nosings

11. Mortar for Tile
The Contractor shall provide Certificates of Compliance from its material suppliers, in advance of the work, certifying that all materials to be used on the project conform to the requirements of these specifications. The Certificates shall be signed by the manufacturers of the materials. The City reserves the right to refuse to permit the use of material based on a Certificate of Compliance alone.

All submittals shall be reviewed and checked by the Contractor prior to submittal to Engineer for review. The Engineer’s review of Contractor shop drawing submittals shall not relieve the Contractor of the entire responsibility for the correctness of details and dimension. The Contractor shall assume all responsibility and risk for any misfits due to any errors in Contractor submittals. The Contractor shall be responsible for the dimensions and the design of adequate connections and details. Acceptance by the Engineer of a substitute item proposed by the Contractor shall not relieve the Contractor of the responsibility for full compliance with the Contract Documents and for adequacy of the substitute item.

12.Concrete Stair Repair
The concrete stairs were constructed many years ago and are in various conditions that must be repaired prior to applying sealant and installing cast aluminum nosings and tile. Materials to be used in the concrete repair work shall be compatible with the materials of the existing stairs.

The contractor shall chip, grind and patch concrete stairs to improve uniformity and restore stairs using an appropriate grout material. Remove loose concrete, oil and grease contaminated concrete,

13.54 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
51 laitance, dust, dirt, and efflorescence by pressure washing. Saturate cleaned concrete before application of repair material. Apply grout in accordance with manufacturer’s instructions. Wet cure or use curing compound as recommended by the grout manufacturer.

Grout shall be non-shrink cementitious as manufactured by Sika or approved equal.

Remove existing joint caulk as indicated in the field. Clean thoroughly to base material. Install new crack repair medium per manufacturers requirements. Quikcrete concrete repair for cracks up to ¼” Xypex Patch’n Plug for hairline cracks up to 1/8” wide or approved equals..

Protect repairs from foot traffic, water exposure and construction damage and contamination.

Payment for “Concrete Stair Repair” and all costs therefore shall be included in the contract unit price paid per LUMP SUM.

13.Concrete Stair Sealer
Provide labor materials, equipment, and supervision necessary to clean, prepare and seal the concrete stairs. The repair of the stairs must be accepted by the City prior to application of the sealer. Remove dirt, oils, curing compounds, laitance and contaminants by pressure washing as needed. The surface must be dry and free of standing water before sealer is applied.

Sealer shall be XYPEX Concentrate or approved equal. Apply sealer in accordance with the manufacturer’s instructions. Apply uniformly and completely without puddling, runs or lap marks.

Protect sealed surfaces from foot traffic, water exposure and construction damage and contamination.

Payment for “Concrete Stair Sealer” and all costs therefore shall be included in the contract unit price paid per LUMP SUM.

14. Cast Aluminum Stair Nosing Installation
Provide all labor, materials, equipment, supervision, and incidentals required for complete installation of cast aluminum stair nosings, including fasteners, setting material, grout, and cleaning. The repair and sealing of the stairs must be accepted by the City prior to installing nosings. See plan details for installation and finishing.

The cast stair aluminum nosings shall be “American Stair Treads - Cast Aluminum Stair Nosings” or approved equal. Widths of 72” (63 each) and 60” (20 each), 6” deep, ¼” thick surface and ¼” long angles nose are required. Cutting will be needed to accommodate field variations in the steps. Drilling of countersunk holes is required. Screwheads shall be flush with tread surfac.

13.55 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
52 Fasteners shall be Loss Prevention Fasteners – Security Sleeve Anchor Ultra 6 Lobe, 3/8” diameter or approved equal, 4 each per nosing. See manufacturers installation instructions for nosings and fasteners.

Non-shrink grout shall be placed behind the nosings to provide a level walking surface flush with the tread walking surface. Use a concrete grinder or scarifier to create a textured surface in the existing step; clean surface prior to applying non-shrink grout. Non-shrink grout shall be FastSet Repair Mortar mixed with 70 mesh sand as an aggregate or an approved equal. Supply a representative sample for approval. approved equal.

Nosing placement is critical to a successful mosaic tile installation, such that the nosing overhang provides adequate space for the mosaic tile installation. Finished surfaces shall be true, level, plumb and aligned. Clean finished nosings after installation and protect installation from traffic and damage during cure period.

Payment for “Cast Stair Aluminum Nosings” and all costs therefore shall be included in the contract unit price paid per LUMP SUM.

15.Mosaic Tile Installation
Provide all labor, materials (other than mosaic tile), equipment, supervision, and incidentals required for complete installation of tile finishes, including substrate preparation, setting material, grout, sealants and cleaning.

The mosaic tile will be supplied by the City’s representative and placed under supervision of said representative. The mosaic tile is installed on all the stair risers within the cast Aluminum Stair Nosing overhang.

Remove dirt, oils, curing compounds, laitance and contaminants by pressure washing as needed.

The surface must be dry before mosaic tile is applied.

The risers shall be coated with watertight Xpex or approved equal. A layer of mortar VersaBond HP or approved equal is to be applied and screeded to provide a true and straight setting bed, and the netted mosaic tile shall be set into wet thinset. Netted tile can be cut into manageable sections as needed. Grout tile with care and seal edges with grout and apply grout impregnator over the tile. Tile joint against the aluminum tread shall be sanded caulk to allow for differential movement.

Three small weep holes, equally spaced, shall be provided below the tile at the grout lines.

Finished surfaces shall be true and aligned with consistent grout lines. Clean finished mosaic tile surface after installation and protect installation from traffic and damage during cure period.

Replace cracked, chipped or defective tile as needed.

13.56 ED IIG PARKS AND PASEOS

SCHOOL STREET STAIRS RENOVATION
Project #c102711
53 Payment for “Mosaic Tile Installation” and all costs therefore shall be included in the contract unit price paid per LUMP SUM.

13.57 City Council

AGENDA REPORT
DATE: 06/04/2026
AGENDA OF: 06/23/2026
DEPARTMENT: Fire
SUBJECT: Third Amendment to the Agreement for Fire Protection and Emergency Response Services and Third Amendment of Lease of the UCSC Fire Station (FD)
LOCATION: District 5 and 6
RECOMMENDATION: Motion to authorize the City Manager to execute a Third Amendment to the Agreement for Fire Protection and Emergency Response Services (Third Amendment to Service Agreement) and a Third Amendment of Lease of the UCSC Fire Station (Third Amendment to Lease Agreement) between the City of Santa Cruz (City) and the Regents of the University of California, on behalf of its Santa Cruz Campus (UCSC), in a form approved by the City Attorney and extending the term for one (1) year, with minor modifications.

BACKGROUND: In 2014, the City entered into a 10-year agreement with UCSC to provide fire protection and emergency response services to the campus through a Service Agreement. At that time, a Lease Agreement was also executed for the UCSC Fire Station.

The City of Santa Cruz Fire Department (SCFD) occupies the UCSC Fire Station with a fire crew and apparatus to provide fire protection and emergency response services to the campus. In 2024, the City executed a First Amendment to the Service Agreement and a First Amendment to the Lease - extending the terms of those agreements for one (1) year with minor modifications.

In 2025, the City executed a Second Amendment to the Service Agreement and a Second Amendment to the lease - extending the terms of those agreements for one (1) more year with minor modifications.

DISCUSSION: City and UCSC staff have entered into negotiations for a longer term agreement.

However, those negotiations are on-going, and the parties have not yet reached a longer-term agreement.

The City and UCSC wish continue their negotiations for a longer term agreement and at the same time enter into a Third Amendment to the Service Agreement and a Third Amendment to the lease – again extending the term for an additional one (1) year with minor modifications.

The proposed updates include amendments to SCFD’s reporting requirements provided in Section 4.2.2 D of the Service Agreement. Additionally, the Third Amendment to Service

14.1 Agreement includes a provision intended to aid in the parties’ long-term negotiations; the City and UCSC would agree to a joint independent fiscal analysis of the costs of the services provided by the City, with the City and UCSC agreeing to split the cost of the consultant at 50 % each.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed City Council action is not a “Project” under CEQA. CEQA applies to activities that may result in direct or reasonably foreseeable indirect physical changes to the environment.

Since the staff recommendation authorizes executing amendments to service and lease agreements without directly proposing or approving any land use or construction projects, this action falls outside CEQA’s scope. However, if it were considered a project, it would be exempt from review under the CEQA Guidelines Section 15061(b)(3) (known as the “Common Sense” exemption) in that it would not reasonably be seen to create a significant impact on the environment.

HEALTH IN ALL POLICIES (HiAP): The staff recommendation directly supports the City’s HiAP pillar of public health through sustained fire protection and emergency response services provided to the UCSC campus by the City.

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: The proposed recommendation will maintain current levels of General Fund revenue from UCSC. UCSC pays 17% of the Fire Department’s Fire Administration operating expenses, Fire/EMS Operations operating expenses, and an amortization schedule for Capital Improvement Project expenses, with an additional 2.5% administrative fee. The revenue received in FY 2026 from the Service Agreement to the General Fund was $4,969,200. The lease payment from the Lease Agreement is an operating expense in the Fire/EMS Operations budget. For the period commencing July 1, 2026 through June 30, 2027, the Bi-Annual Rent paid by the City will be 3% more than $66,532.00 (the amount paid by the City for July 1, 2025 through June 30, 2026). This is included in the FY 2027 budget.

Prepared By:

Megan Nutt
Principal Management
Analyst
Submitted By:

Rob Oatey
Fire Chief
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. THIRD AMENDMENT TO LEASE.DOC

2. THIRD AMENDMENT TO SERVICE AGREEMENT.DOC

3. SERVICE AGREEMENT.PDF

4. LEASE AGREEMENT.PDF

5. FIRST AMENDMENT TO LEASE.PDF

6. FIRST AMENDMENT TO SERVICE AGREEMENT.PDF

7. SECOND AMENDMENT TO LEASE.PDF

8. SECOND AMENDMENT TO SERVICE AGREEMENT.PDF

14.2 Third Amendment to Lease
June 2026 Page 1

THIRD AMENDMENT TO THE LEASE AGREEMENT BETWEEN THE CITY OF SANTA CRUZ AND THE REGENTS OF

THE UNIVERSITY OF CALIFORNIA
THIS THIRD AMENDMENT of the Lease (the “Third Lease Amendment”), is made by and between THE CITY OF SANTA CRUZ (“City or Tenant”) AND THE REGENTS OF THE UNIVERSITY OF CALIFORNIA, ON BEHALF OF ITS SANTA CRUZ CAMPUS (“University” or “Landlord”), effective as of July 1st, 2026 (the “Effective Date”). City and University may be referred to individually as a “Party” and collectively, as the “Parties.”

RECITALS
WHEREAS, the University and the City entered into that certain lease effective September 23, 2014 for the lease of the UCSC Fire Station (CAAN 7404) (the “Lease”) as more particularly described in the Lease, including the Lease’s Exhibit A;
WHEREAS, the University and the City further entered into a First Amendment of the Lease on July 1, 2024 to extend the term of the Lease for one year and to amend Article 9.4(b) and Article 9.4 (c) regarding “Tenant Request for Maintenance, Repair, or Service”; WHEREAS, the University and the City further entered into a Second Amendment to the Lease on July 1, 2025 to extend the term of the Lease for an additional one year and to amend Article 4 “Rent” of the Lease, as specified herein.

WHEREAS, the University and the City desire to enter into this Third Amendment to the Lease to extend the term of the Lease for an additional one year and to amend Article 4 “Rent” of the Lease, as specified herein.

AGREEMENT
NOW, THEREFORE, it is agreed between the Parties to incorporate the above Recitals hereto, and that the Parties agree to the following:

1. Article 3.1 “Term” of the Lease is hereby amended to replace the prior Article 3.1 of the Lease with the following:

The term of this Lease (the “Lease Term”) shall commence on the Operative Date as set forth in the Fire Services Agreement (“Lease Commencement Date”) and end as of the earlier of June 30, 2027 or the termination of the Fire Services Agreement (“Lease Termination Date”), unless sooner terminated pursuant to any provision hereof. The Lease Termination Date may be extended by mutual written agreement of the Parties.

2. Article 4 “Rent” of the Lease is hereby amended to replace the prior Article 4, subsection (a) of the Lease with the following:
a. For the Period commencing July 1, 2026 through June 30, 2027, the Bi-Annual Rent (“Base Rent”) paid by the City shall be 3% more than $66,532.00 (the amount paid by the City for July 1, 2025 through June 30, 2026).

14.3 Third Amendment to Lease
June 2026 Page 2

3. Except as amended by this Third Lease Amendment, all other applicable terms and conditions of the Lease, and other prior amendment(s), shall remain in full force and effect. The terms of this Third Lease Amendment shall control if any conflict exists.

4. Each party acknowledges that it has reviewed this Third Lease Amendment 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 Third Lease Amendment.

5. The unenforceability, invalidity or illegality of any provision(s) of this Third Lease Amendment shall not render the other provisions unenforceable, invalid or illegal.

6. The Parties may execute this Third Lease Amendment 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.

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

IN WITNESS WHEREOF, the University and the City have executed this Third Lease Amendment effective as of the Effective Date.

UNIVERSITY
By: Date:

Printed: Nikki Vamosi Title: Executive Director of RECS

CITY OF SANTA CRUZ
By:

Matt Huffaker, City Manager
Date:

Approved As To Form:

By:

Office of the City Attorney
Date:

14.4 THIRD AMENDMENT TO THE AGREEMENT FOR FIRE PROTECTION AND EMERGENCY RESPONSE

SERVICES BETWEEN THE CITY OF SANTA CRUZ AND THE REGENTS OF THE UNIVERSITY OF

CALIFORNIA
THIS THIRD AMENDMENT of the Agreement for Fire Protection and Emergency Response Services (the “Third Services Amendment”), is made by and between THE CITY OF SANTA CRUZ (“City”) AND THE REGENTS OF THE UNIVERSITY OF CALIFORNIA, ON BEHALF OF ITS SANTA CRUZ CAMPUS (“University” or “Landlord”), effective as of July 1st, 2026 (the “Effective Date”). City and University may be referred to individually as a “Party” and collectively, as the “Parties.”

RECITALS
WHEREAS, the University and the City entered into that certain Agreement for Fire Protection and Emergency Response Services, effective July 1, 2014 (the “Services Agreement”), incorporated herein by this reference;
WHEREAS, the University and the City further entered into a First Amendment to the Services Agreement on July 1, 2024 to extend the term of the Services Agreement for one year and to add subsections to Article 4.2.2 (B) regarding “Response Services”; WHEREAS, the University and the City further entered into a Second Amendment to the Services Agreement on July 1, 2025 to extend the term of the Services Agreement for one year and to amend Section 5.2.4 “Use of University Facilities”.

WHEREAS, the University and the City desire to enter into this Third Services Amendment to extend the term of the Services Agreement for one year.

AGREEMENT
NOW, THEREFORE, it is agreed between the Parties to incorporate the above Recitals hereto, and that the Parties agree to the following:

1. Article 1.2 “Term” of the Services Agreement is hereby amended to replace the prior Article 1.2 with the following:

This term of this Agreement shall commence on the Operative Date and shall end on June 30, 2027 (the “Term End Date”), unless sooner terminated pursuant to the terms of this Agreement. The Term End Date may be extended by mutual written agreement of the parties hereto.

2. Section 4.2.2 D of the Services Agreement is hereby amended to replace the prior Section 4.2.2 D with the following:

D. Performance Requirements and Reporting. As stated in Section 4.2.2 above, City must provide Fire Services at a level of services not less than that currently being provided to the Campus Area by the University (in cooperation with other providers and with the City as set forth in the Management Agreement, Firefighter Agreement and Equipment Agreement). To ensure compliance with this service level requirement, City 14.5 shall monitor the Response Time for incidents occurring within the Campus Area. City shall provide reports to the University as described below. (i) On a monthly basis, the City will report the following information to the University Contract Administrator:
a. Unique incident identifier
b. Incident type (e.g., NIFRS category)
c. Incident subtype (per SCFD classification)
d. Date and time of call
e. Date and time of unit dispatch
f. Date and time of unit en route
g. Date and time of unit on scene of incident
h. Unit number
i. Address of incident
j. Incident disposition
(ii) At least quarterly at the quarterly meetings described in Section 4.3 below, or on a different schedule agreed to by the Parties, the Parties will meet to discuss significant incidents and any follow up questions on the data presented in the monthly reports.

3. The City and University agree to a joint independent fiscal analysis of the costs of the services provided by the City. The City will hire, with approval from the University, an independent consultant to do a cost of service study. The Parties agree to split the cost of the consultant 50/50; University will reimburse the City for fifty percent (50%) of the total costs of hiring the consultant.

4. Except as amended by this Third Services Amendment, all other applicable terms and conditions of the Services Agreement, and other prior amendment(s), shall remain in full force and effect. The terms of this Third Services Amendment shall control if any conflict exists.

5. Each party acknowledges that it has reviewed this Third Services Amendment 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 Third Services Amendment.

6. The unenforceability, invalidity or illegality of any provision(s) of this Third Services Amendment shall not render the other provisions unenforceable, invalid or illegal.

7. The Parties may execute this Third Services Amendment 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.

8. The signatories to this Third Services Amendment warrant and represent that each is authorized to execute this Third Services Amendment and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this Third Services Amendment.

14.6 [SIGNATURES ON FOLLOWING PAGE]

14.7 IN WITNESS WHEREOF, the University and the City have executed this Third Services Amendment effective as of the Effective Date.

Approved As To Form:

By:

Office of the City Attorney
Date:

UNIVERSITY
By: Date:

Printed: Nikki Vamosi Title: Executive Director of RECS

CITY OF SANTA CRUZ
By:

Matt Huffaker, City Manager
Date:

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FIRST AMENDMENT OF LEASE BETWEEN THE CITY

OF SANTA CRUZ AND THE REGENTS OF THE

UNIVERSITY OF CALIFORNIA, ON BEHALF OF ITS

SANTA CRUZ CAMPUS
THIS FIRST AMENDMENT OF the LEASE BETWEEN THE CITY OF SANTA CRUZ (“City” or “Tenant”) AND THE REGENTS OF THE UNIVERSITY OF CALIFORNIA, ON BEHALF OF ITS SANTA CRUZ CAMPUS (“University” or “Landlord”), (the “Lease Amendment”), is effective as of July 1, 2024 (“Amendment Effective Date”).

RECITALS
A. University and City entered into that certain Lease (“Lease”) effective September 23, 2014 for lease of the UCSC Fire Station (CAAN 7404), as more particularly described in the Lease, including the Lease’s Exhibit A;
B. Landlord and Tenant (collectively “Parties”) now wish to extend the Lease for one year and amend the Lease as agreed below;
NOW, THEREFORE, in consideration of the mutual covenants and promises set forth in this Lease Amendment and other valuable consideration, receipt of which is hereby acknowledged, Landlord and Tenant, hereby agree that the Lease is amended as follows:

1. Definitions and Recitals. Except as expressly modified herein, terms defined in the Lease shall have the same meanings when used in the Amendment. The Parties agree to incorporate the above recitals.

2. Term. The existing language in the Lease’s Article 3.1 titled, “Term,” is deleted in its entirety and replaced with the following:
“The term of this Lease (the “Lease Term”) shall commence on the Operative Date as set forth in the Fire Services Agreement (“Lease Commencement Date”) and end as of the earlier of June 30, 2025 or the termination of the Fire Services Agreement (“Lease Termination Date”), unless sooner terminated pursuant to any provision hereof. The Lease Termination Date may be extended by mutual written agreement of the Parties.”

3. Tenant Request for Maintenance, Repair, or Service. The existing language in the Lease’s Article 9.4(b) and 9.4(c) is deleted in its entirety and replaced with the following:
“9.4 (b) - Service Requests received from the Tenant for maintenance, repair or services, will be addressed in the following manner:
i. Emergency (Priority 1): University shall confirm receipt and respond in a timeframe appropriate for the emergency, and in no event later than 12 hours after receiving the emergency service request. Off-hours emergencies should be reported to UCSC Police Department Dispatch for immediate attention. Emergencies shall be remedied in a timeframe appropriate to the emergency, and always initially addressed within 24 hours after receiving the service request, with any non-emergency follow-on actions to be addressed via one of the lower priority timelines discussed later in this Docusign Envelope ID: 9CA7E6C5-4F36-4243-91CD-05F4C25B0D05

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paragraph. Emergencies are those for which immediate action is needed to prevent harm or significant damage; examples of emergencies include: Flooding, fire hazards, biological hazards, gas leaks, electrical failures to critical areas, and structural damage. Life safety emergencies should be directed to emergency services by calling 911.
ii. Urgent / High (Priority 2): University shall confirm receipt and respond within two business days and shall create a work plan that is shared with SCFD within three days after receiving the Urgent / High Priority Service request. Off-hours urgent / high priorities should be reported to UCSC Police Department Dispatch for prompt attention. Urgent / high priority requests shall be remedied within seven days after receiving the Urgent / High Priority Service request, with any follow-on non-urgent / non-high priority actions to be addressed via 9.4 (b)(iii). below. Urgent / high priorities are those for which prompt resolution is needed to maintain habitability and/or avoid disruptions to operations; examples of urgent / high priority work include: HVAC failures affecting critical areas, plumbing issues, malfunctioning security systems, electrical failures in non-critical areas, carbon monoxide monitor replacement, and health hazards not deemed to be an emergency.
iii. Medium (Priority 3): University to confirm receipt within five business days, respond within fourteen days, and shall create a work plan that is shared with SCFD within thirty days. Medium priority requests should be remedied within thirty days; however, completion of medium priority requests may be delayed no longer than 60 days after receiving the Priority 3 Service request due to higher priority tasks or scheduling constraints.
iv. The Parties acknowledge and agree that the living quarters on the Premises must be fit for human habitation, and the implied warranty of habitability applies as to those areas.
v. Regular Reporting Related to Service Requests: For Priority 1 Service Requests, University shall provide daily written status update reports to SCFD until the Priority 1 issue is resolved. For Priority 2 Service Requests, University shall provide weekly written status update reports to SCFD until the Priority 2 issue is resolved. For Priority 3 Service Requests, University shall provide monthly written status update reports to SCFD until the Priority 3 issue is resolved.
vi. As provided in Paragraph 9.4(a), University shall designate a single point of contact to communicate with SCFD about Service Requests.
(c) If the Parties disagree as to the best course of action for a Service Request, the Parties agree to promptly communicate with each other and attempt to negotiate a resolution in good faith. If Landlord decides that a Service Request requires immediate attention to preserve Landlord’s property, Landlord may elect to repair the issue pending the resolution of the dispute by providing notice to Tenant that Landlord will complete the repair.”

4. Rent. To Article 4, the following new subsection is added:
a) For the Period commencing July 1, 2024 through June 30, 2025, the rental amounts paid by the City shall be 3% more than what the City paid July 1, 2023 through June 30, 2024.

5. Except as expressly amended above, the Lease remains in full force and effect. [Signatures on following page]
Docusign Envelope ID: 9CA7E6C5-4F36-4243-91CD-05F4C25B0D05

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IN WITNESS WHEREOF, the Parties have executed this Lease Amendment on the dates specified adjacent to their respective signatures.

LANDLORD TENANT

THE REGENTS OF THE UNIVERSITY THE CITY OF

CALIFORNIA SANTA CRUZ
By: By:

Name:____________________________ Matthew Huffaker
Director Real Estate and Contracts City Manager
Date: Date:

APPROVED AS TO FORM:

Office of the City Attorney Date
Docusign Envelope ID: 9CA7E6C5-4F36-4243-91CD-05F4C25B0D05 9/18/2024
9/18/2024 9/18/2024
Nikki Vamosi

14.150

FIRST AMENDMENT OF THE AGREEMENT FOR FIRE

PROTECTION AND EMERGENCY RESPONSE

SERVICES BETWEEN THE CITY OF SANTA CRUZ

AND THE REGENTS OF THE UNIVERSITY OF

CALIFORNIA, ON BEHALF OF ITS SANTA CRUZ
CAMPUS

THIS FIRST AMENDMENT OF THE AGREEMENT FOR FIRE PROTECTION AND EMERGENCY RESPONSE SERVICES BETWEEN THE CITY OF SANTA CRUZ (“City”) and the

REGENTS OF THE UNIVERSITY OF CALIFORNIA, ON BEHALF OF ITS SANTA CRUZ CAMPUS (“University”), (the “Amendment”), is effective as of July 1, 2024 (“Amendment Effective Date”)).

RECITALS
A. City and University entered into the Agreement for Fire Protection and Emergency Services effective July 1, 2014, (the “Services Agreement”) for certain services at the “University Fire Service Area” or “Campus Area”, as more particularly described in the Services Agreement, including Exhibit B to the Services Agreement;
B. City and University now wish to extend the Services Agreement for one year and amend the Service Agreement as set forth below;
NOW, THEREFORE, in consideration of mutual covenants and promises set forth in this Amendment and other valuable consideration, receipt of which is hereby acknowledged, City and University hereby agree that the Services Agreement is amended as follows:

1. The Parties agree to incorporate the above recitals. Except as expressly modified herein, terms defined in the Services Agreement shall have the same meanings when used in this Amendment.

2. Term. The existing language in the Services Agreement’s Article 1.2 titled, “Term,” is deleted in its entirety and replaced with the following:
“The term of this Agreement shall commence on the Operative Date and shall end on June 30, 2025 (the “Term End Date”, unless sooner terminated pursuant to the terms of this Agreement. The Term End Date may be extended by mutual written agreement of the Parties.”

3. Response Services. The following new subsections are added to Article 4.2.2 (B):
(viii) City crews to attend training walkthroughs with University related to field training and newly constructed/renovated or newly occupied campus buildings at timely and mutually agreeable times to ensure knowledge of familiarity with the following:
● Site security, access, fire protection, location of fire hydrants, additional operational needs (pre-Construction at a construction site). Requirements covered in NFPA 241.
● The building during the construction phase, once fire sprinklers and alarms are online and in operating condition.
● Pre-Occupancy certification of the building.

Docusign Envelope ID: 9CA7E6C5-4F36-4243-91CD-05F4C25B0D05

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(ix) Add-on EMS deployment. If mutually agreed upon by the Parties and if staffing and equipment allows, City will provide additional EMS deployment for stand-by for planned campus events at a mutually pre-agreed upon service fee per each scheduled planned event.

4. Designated Campus Fire Marshall Program. The following new subsection is added to 4.2:

4.2 (E) Designated Campus Fire Marshal Program. UCSC to include the following in its Campus Fire Marshall Program:
● Plan review and construction inspections for Title 24; ● Fire and life safety inspections in existing state-regulated occupancies and compulsory annual inspections in existing state mandated occupancies for Title 19; ● Special events as defined by the MOU between the UC Regents and California Office of the State Fire Marshal;
● Fires, explosions, and other emergency notifications to UCSC Lead Designated Campus Fire Marshal; and
● Post Incident Re-Occupancy Plans.

5. Except as expressly amended above, the Services Agreement remains in full force and effect.

IN WITNESS WHEREOF, the parties have executed this First Amendment of the Services Agreement on the dates specified adjacent to their respective signatures.

RECIPIENT SERVICER

THE REGENTS OF THE UNIVERSITY THE CITY OF

CALIFORNIA SANTA CRUZ
By: By:

Name:____________________________ Matthew Huffaker
Director Real Estate and Contracts City Manager
Date: Date:

APPROVED AS TO FORM:

Office of the City Attorney Date
Docusign Envelope ID: 9CA7E6C5-4F36-4243-91CD-05F4C25B0D05 9/18/2024
9/18/2024
Nikki Vamosi
9/18/2024

14.152
Second Amendment to Lease
June 2025 Page 1

SECOND AMENDMENT TO THE LEASE AGREEMENT BETWEEN THE CITY OF SANTA CRUZ AND THE REGENTS

OF THE UNIVERSITY OF CALIFORNIA
THIS SECOND AMENDMENT of the Lease (the “Second Lease Amendment”), is made by and between THE CITY OF SANTA CRUZ (“City or Tenant”) AND THE REGENTS OF THE UNIVERSITY OF CALIFORNIA, ON BEHALF OF ITS SANTA CRUZ CAMPUS (“University” or “Landlord”), effective as of July 1st, 2025 (the “Effective Date”). City and University may be referred to individually as a “Party” and collectively, as the “Parties.”

RECITALS
WHEREAS, the University and the City entered into that certain lease effective September 23, 2014 for the lease of the UCSC Fire Station (CAAN 7404) (the “Lease”) as more particularly described in the Lease, including the Lease’s Exhibit A;
WHEREAS, the University and the City further entered into a First Amendment of the Lease on July 1, 2024 to extend the term of the Lease for one year and to amend Article 9.4(b) and Article 9.4 (c) regarding “Tenant Request for Maintenance, Repair, or Service”; WHEREAS, the University and the City desire to enter into this Second Amendment to the Lease to extend the term of the Lease for an additional one year and to amend Article 4 “Rent” of the Lease, as specified herein.

AGREEMENT
NOW, THEREFORE, it is agreed between the Parties to incorporate the above Recitals hereto, and that the Parties agree to the following:

1. Article 3.1 “Term” of the Lease is hereby amended to replace the prior Article 3.1 of the Lease with the following:

The term of this Lease (the “Lease Term”) shall commence on the Operative Date as set forth in the Fire Services Agreement (“Lease Commencement Date”) and end as of the earlier of June 30, 2026 or the termination of the Fire Services Agreement (“Lease Termination Date”), unless sooner terminated pursuant to any provision hereof. The Lease Termination Date may be extended by mutual written agreement of the Parties.

2. Article 4 “Rent” of the Lease is hereby amended to replace the prior Article 4 of the Lease with the following:
a. For the Period commencing July 1, 2025 through June 30, 2026, the Bi-Annual Rent (“Base Rent”) paid by the City shall be 3% more than $64, 564 (the amount paid by the City for July 1, 2024 through June 30, 2025).
b. Tenant shall pay to Landlord the Base Rent for the Premises, consistent with subdivision 4(a) above. After Tenant has exhausted Tenant’s Capital Reserve Fund in association with Section 9 Docusign Envelope ID: 44BF50E3-F433-468C-BEDF-69192C1FB2F9

14.153
Second Amendment to Lease
June 2025 Page 2
of the Work Agreement between Landlord and Tenant dated June 20th, 2025 (the “Work Agreement”), Landlord agrees to provide Tenant with a credit against the Base Rent for Excess Costs, as defined in the Work Agreement, whereby the Tenant shall not be responsible for the payment of any Base Rent. This credit against the Base Rent shall continue until all costs and expenses for the kitchen and living room alterations project as further described and defined in the Work Agreement (the “Alterations”) have been credited to Tenant. After all costs and expenses for the Alterations have been credited to Tenant, the Parties agree to resume the Base Rent. Rent shall be payable to Landlord at the address stated herein or at such other address as Landlord may from time to time designate in writing.

3. Except as amended by this Second Lease Amendment, all other applicable terms and conditions of the Lease, and other prior amendment(s), shall remain in full force and effect. The terms of this Second Lease Amendment shall control if any conflict exists.

4. Each party acknowledges that it has reviewed this Second Lease Amendment 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 Second Lease Amendment.

5. The unenforceability, invalidity or illegality of any provision(s) of this Second Lease Amendment shall not render the other provisions unenforceable, invalid or illegal.

6. The Parties may execute this Second Lease Amendment 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.

7. The signatories to this Second Lease Amendment warrant and represent that each is authorized to execute this Second Lease Amendment and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this Second Lease Amendment.
[SIGNATURES ON FOLLOWING PAGE]
Docusign Envelope ID: 44BF50E3-F433-468C-BEDF-69192C1FB2F9

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Second Amendment to Lease
June 2025 Page 3
IN WITNESS WHEREOF, the University and the City have executed this Second Lease Amendment effective as of the Effective Date.

Approved As To Form:

By: _____________________________ Date: ___________
Office of the City Attorney

UNIVERSITY
By: _____________________________ Date: __________________ Printed: _________________________ Title: _________________________

CITY OF SANTA CRUZ
By: _____________________________ Date: _________________ Matt Huffaker, City Manager
Docusign Envelope ID: 44BF50E3-F433-468C-BEDF-69192C1FB2F9 7/8/2025
7/8/2025
Nikki Vamosi
7/7/2025
Executive Director of RECS

14.155

SECOND AMENDMENT TO THE AGREEMENT FOR FIRE PROTECTION AND EMERGENCY RESPONSE

SERVICES BETWEEN THE CITY OF SANTA CRUZ AND THE REGENTS OF THE UNIVERSITY OF

CALIFORNIA
THIS SECOND AMENDMENT of the Agreement for Fire Protection and Emergency Response Services (the “Second Services Amendment”), is made by and between THE CITY OF SANTA CRUZ (“City”) AND THE REGENTS OF THE UNIVERSITY OF CALIFORNIA, ON BEHALF OF ITS SANTA CRUZ CAMPUS (“University” or “Landlord”), effective as of July 1st, 2025 (the “Effective Date”). City and University may be referred to individually as a “Party” and collectively, as the “Parties.”

RECITALS
WHEREAS, the University and the City entered into that certain Agreement for Fire Protection and Emergency Response Services, effective July 1, 2014 (the “Services Agreement”), incorporated herein by this reference;
WHEREAS, the University and the City further entered into a First Amendment to the Services Agreement on July 1, 2024 to extend the term of the Services Agreement for one year and to add subsections to Article 4.2.2 (B) regarding “Response Services”; WHEREAS, the University and the City desire to enter into this Second Services Amendment to extend the term of the Services Agreement for one year and to amend Section 5.2.4 “Use of University Facilities”.

AGREEMENT
NOW, THEREFORE, it is agreed between the Parties to incorporate the above Recitals hereto, and that the Parties agree to the following:

1. Article 1.2 “Term” of the Services Agreement is hereby amended to replace the prior Article 1.2 with the following:

This term of this Agreement shall commence on the Operative Date and shall end on June 30, 2026 (the “Term End Date”), unless sooner terminated pursuant to the terms of this Agreement. The Term End Date may be extended by mutual written agreement of the parties.

2. Section 5.2.4 “Use of University Facilities” of the Services Agreement is hereby amended to replace the prior Section 5.2.4 with the following:

Use of University Facilities. In addition to use of the UCSC Fire Station (the use of which is governed by the Lease), University will allow City fire personnel to use the University facilities specified in (A) and (B) below, as set forth below. All such facility use shall be subject to University policies and procedures applicable to internal University users of such facilities, except for the payment terms specified below:

Docusign Envelope ID: 44BF50E3-F433-468C-BEDF-69192C1FB2F9

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A. University Wellness Center. University will provide three (3) passes for access to the University Wellness/Fitness Center (the “Center”), for use by on-duty firefighters only, at no cost to the City or employee (other than as included in rent due under the Lease),

B. Parking. University will provide three (3) designated parking spaces with appropriate signage and striping, as provided in the Lease, for the exclusive use of the City for onduty firefighters assigned to the UCSC Fire Station at no charge to the City or employee (other than as included in rent due under the Lease). Additional spaces requested by the City will be paid for by the City at the University's parking rates prevailing at the time of the request and may be adjusted in accordance with University policy.

University designates Blanca Cassidy, Project Support Specialist to Associate Vice Chancellor Clement O. Stokes (“University Representative”), as the contact person for City to contact for any issues that may arise with the City’s use of the three passes to access the Center or if any issues arise with use of the designated parking spaces. The Parties agree that the University Representative will have ten (10) days after receiving notice from the City of any issues, to ensure City’s access to the Center and exclusive use of the three (3) designated parking spaces as required by this Section.

3. Except as amended by this Second Services Amendment, all other applicable terms and conditions of the Services Agreement, and other prior amendment(s), shall remain in full force and effect. The terms of this Second Services Amendment shall control if any conflict exists.

4. Each party acknowledges that it has reviewed this Second Services Amendment 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 Second Services Amendment.

5. The unenforceability, invalidity or illegality of any provision(s) of this Second Services Amendment shall not render the other provisions unenforceable, invalid or illegal.

6. The Parties may execute this Second Services Amendment 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.

7. The signatories to this Second Services Amendment warrant and represent that each is authorized to execute this Second Services Amendment and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this Second Services Amendment.
[SIGNATURES ON FOLLOWING PAGE]
Docusign Envelope ID: 44BF50E3-F433-468C-BEDF-69192C1FB2F9

14.157
IN WITNESS WHEREOF, the University and the City have executed this Second Services Amendment effective as of the Effective Date.

Approved As To Form:

By: _____________________________ Date: ___________
Office of the City Attorney

UNIVERSITY
By: _____________________________ Date: _________________ Printed: __________________________ Title: ________________________

CITY OF SANTA CRUZ
By: _____________________________ Date: __________________ Matt Huffaker, City Manager
Docusign Envelope ID: 44BF50E3-F433-468C-BEDF-69192C1FB2F9 7/8/2025
7/8/2025
Nikki Vamosi Executive Director of RECS
7/7/2025

14.158
City Council

AGENDA REPORT
DATE: 06/04/2026
AGENDA OF: 06/23/2026
DEPARTMENT: Fire
SUBJECT: Authorize the Purchase of a Fire Boat for the Santa Cruz Fire Department with Fire Public Safety Impact Fee Funds – Budget Adjustment (FD) LOCATION: District 2, 3, 4, and 6
RECOMMENDATION: Motion to adopt a resolution to amend the FY 2026 budget to add $27,437.50 as a transfer from the Public Safety Impact Fee, Fund 217, to the FY 2026 General Capital Investment Program, Fund 311, and to add $27,437.50 in revenue and expenditure budget to project c212608, Fire Boat Purchase for Fire Department.

BACKGROUND: On April 27, 2021, the City Council adopted the Public Safety Impact Fee (PSIF) Ordinance No. 2021-11, establishing Santa Cruz Municipal Code, Chapter 18.49 - Public Safety Impact Fee.

Fire and Police contracted with DTA, a public finance, development economics, and clean energy bond consulting firm, in 2024 to review the City of Santa Cruz’s (City) PSIFs. DTA produced a comprehensive 2025 Public Safety Development Impact Fee Nexus Study that evaluates the adequacy of existing fees, identifies future infrastructure requirements, calculates the cost of maintaining acceptable levels of public safety services, and offers actionable recommendations to update the PSIF fee schedule to close funding gaps. The 2025 Public Safety Development Impact Fee Nexus Study was brought to City Council in 2025.

The SCFD purchase of a fire boat addresses an important need in coastal and maritime emergency response for the City. The nearest fireboat capable of reaching the Santa Cruz coastline and critical coastal City infrastructure, sits 45 to 60 minutes away.

The SCFD continues to identify responsible, cost-effective ways to deploy public funds such as PSIF’s in an environment that faces increasingly complex coastal threats. This fire boat acquisition advances the City’s longstanding commitment to public safety, particularly in our coastal environment. Development within the City of Santa Cruz directly impacts marine safety response access and capabilities along the coastline This purchase will enable the SCFD to continue to serve existing and new residents, City employees, and visitors in a more dynamic way.

15.1 DISCUSSION: The SCFD’s use of PSIF funds for the purchase of a fire boat begins to address a critical emergency response strategy and represents one piece of a broader effort underway to improve the City’s emergency response capacity. Over the past two years, the City and its partners established the Coastal Coordination Working Group (CCWG), initiated development of Coastal Incident Response Plan, conducted joint exercises with regional partners focused on coastal emergencies, and advanced mutual-aid agreements with state, local, private, and nonprofit partners. The City joined the Area Maritime Security Commission (AMSC) two years ago. Through that body, SCFD identified a low-cost locally available fireboat that could provide an immediate step toward filling the coastal emergency response need.

Each effort builds response capacity that matches the area's risks. A prior federal funding request through FEMA's Pre-Disaster Mitigation program did not receive funding, which reinforces the need to pursue local and alternative funding pathways.

SCFD plans to operate the vessel as a shared regional asset and is exploring establishing a Joint Powers Authority (JPA) to distribute financial and operational responsibility across partner agencies. Capitola, Central Fire, and the Santa Cruz Harbor have expressed interest in jointly funding the vessel's annual operations and maintenance. SCFD continues to coordinate with the City Attorney's Office to draft a contract that reduces the City's ongoing expenditure commitment.

As of June 2, 2026, Fund 217 (Fire Public Safety Impact Fee) holds a balance of $241,865.60 and fully covers the $27,437.50 purchase price.

Staff recommends that the City Council authorize the purchase of the fireboat using Fire PSIF funds. This investment strengthens staff safety, public protection, and long-term coastal resilience.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed procurement of a fire boat for the SCFD is not a “Project” under CEQA. (See 14 CCR § 15378(b)(2) “Project does not include: . . . (2) Continuing administrative or maintenance activities, such as purchases for supplies”.)
HEALTH IN ALL POLICIES (HiAP): The purchase of a fire boat for the SCFD using public safety impact fee funds supports the City’s HiAP pillar of public health through dedicated City funding towards a key piece of equipment to deliver and enhance fire suppression and lifesaving capabilities along the coastline in order to adequately serve existing and new residents, City employees, and visitors.

FISCAL IMPACT:

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

2. This recommendation requires a budget adjustment: Yes

3. The recommendation creates an on-going expenditure commitment: Yes FISCAL IMPACT DESCRIPTION: The fire boat for the Fire Department will be purchased with $27,437.50 of Fire Public Safety Impact Fees, in Fund 217, which will be transferred into the General Fund CIP Fund and purchased out of the Fire Department CIP project, c212608, Fire Boat Purchase for Fire Department.

15.2 The net fiscal impact to the General Fund for FY 2027 is planned to be $65,000, which includes $30,000 for upgrades, $10,000 for outfitting, and $25,000 for operations and maintenance. The Fire Department will return to Council in August 2026 with a budget adjustment to move funds from its operating budget in Fund 101 to the CIP fund to cover the upgrade and outfitting costs for the boat for FY 2027. The department will cover the operations and maintenance costs through its operating budget. This ongoing expenditure commitment, anticipated to continue to be $25,000 annually, will be funded through the Fire Department’s operating budget for FY 2028 and subsequent years.

Prepared By:

Megan Nutt
Principal Management
Analyst
Submitted By:

Rob Oatey
Fire Chief
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. BUDGET ADJUSTMENT.PDF

2. QUOTE.PDF

15.3 City of Santa Cruz

BUDGET ADJUSTMENT REQUEST
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NET: $

REQUESTED BY DEPARTMENT HEAD

APPROVAL

BUDGET/ACCOUNTING
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APPROVAL

CITYMANAGER

APPROVAL
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TOTAL EXPENDITURE

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 Clear Form
FY26
06/04/2026
Transfer funds $27,437.50 from the Fire Department's Public Safety Impact Fee Fund 217-21-31-2207-46348 into the General Fund CIP budget 311-21-31-2202-57402 (Vehicle equipment) for the Fire Department's purchase of a Fire Boat. 311-00-00-0000-49183 c212608-993-0-0 Fire Public Safety Impact Fee Fund 27,438 27,438
311-21-31-2202-57402 c212608-100-2020-0 Vehicle Equipment 27,438 217-00-00-0000-59103 To General Fund CIP from Fire Public Safety Impact Fee Fund 27,438 54,875
-27,438
Megan
Nutt
Digitally signed
by Megan Nutt
Date: 2026.06.04
12:36:58 -07'00'
Rob
Oatey
Digitally signed
by Rob Oatey
Date: 2026.06.08
13:09:49 -07'00'
Emily
Burton
Digitally signed
by Emily Burton
Date: 2026.06.08
13:21:13 -07'00'
Elizabet
h Cabell
Digitally signed by
Elizabeth Cabell
Date: 2026.06.08
13:28:12 -07'00' 15.4
Date
06/04/26
Cost
25,000.00
Please let me know if you have any questions - Thank you Total $25,000.00 Alameda Fire Department
Cody Moxley
1300 Park St
Alameda, CA 94501
Description
1). 2014 Harbor Guard Firehawk 32 boat and trailer
Name/ Address
Todd Meyer
230 Walnut Ave.

Santa Cruz, CA 95060
Quote

15.5 City Council

AGENDA REPORT
DATE: 06/04/2026
AGENDA OF: 06/23/2026
DEPARTMENT: Finance
SUBJECT: Pass-Through Agreement with Community Bridges - TDA Claimant (FN) LOCATION: Citywide
RECOMMENDATION: Motion to authorize and direct the City Manager to execute an agreement with Community Bridges, allowing the City to act as claimant for funds obtained from the Santa Cruz County Regional Transportation Commission (SCCRTC) for Fiscal Year (FY) 2027.

BACKGROUND: Community Bridges relies on funding from the SCCRTC to support its programs. The City annually serves as a pass-through agent between Community Bridges and the SCCRTC. Accordingly, Community Bridges is again requesting that the City act as claimant for funds for the coming FY 2027. Since Community Bridges is unable to act as claimant for itself, it must request that an outside entity perform this service.

DISCUSSION: The SCCRTC has budgeted $914,735 for CTSA operations which will each be disbursed in four installments during the fiscal year. Please see Community Bridges’ Letter of Request and Exhibits A, Operating and Capital Budget; B, CTSA Five Year Capital Improvement Plan; C, Operating Plan; D, Schedule of Payments; E, Statement of Role and Responsibility; F, Reporting Period; G, Operating Statistics; H, Community Bridges Agency Board Resolution; and I, SCCRTC Apportionment Schedule.

The City contract stipulates in Item 3 that the City will make payments to Community Bridges for the amount received from the SCCRTC in each fiscal year. In addition, SCCRTC’s bylaws stipulate that changes may occur in funding amounts, as needed, during the course of a fiscal year.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: This is not a project under CEQA.

HEALTH IN ALL POLICIES (HiAP): This action promotes community connectedness. By acting as a pass-through agent, the City supports Community Bridges’ continued outreach within the community. This specific program provides rides for non-emergency health and medical transportation for low-income seniors and disabled residents, ensuring access to care to those who may not have easily accessible transportation.

16.1 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 of Santa Cruz will serve as a pass-through agent.

The only impact on the City is staff time to serve as the pass-through agent and to submit an Annual State Controllers Transit Report in regards to acting as the pass-through agent.

Prepared By:

Nicholas Gong
Finance Manager
Submitted By:

Elizabeth Cabell
Director of Finance
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. COMMUNITY BRIDGES AGREEMENT FOR FY27.PDF

2. COMMUNITY BRIDGES FY27 EXHIBITS A-I.PDF

16.2 16.3

16.4 16.5

16.6 16.7

16.8 16.9

16.10 16.11

16.12 16.13

16.14 16.15

16.16 16.17

16.18 16.19

16.20 City Council

AGENDA REPORT
DATE: 06/04/2026
AGENDA OF: 06/23/2026
DEPARTMENT: Finance
SUBJECT: Pass-Through Agreement with Volunteer Center of Santa Cruz County - TDA Claimant (FN)
LOCATION: Citywide
RECOMMENDATION: Motion to authorize and direct the City Manager to execute an agreement with Volunteer Center of Santa Cruz County, allowing the City to act as claimant for funds obtained from the Santa Cruz County Regional Transportation Commission (SCCRTC) for Fiscal Year (FY) 2027.

BACKGROUND: The Volunteer Center of Santa Cruz County relies on funding from the SCCRTC to support its programs. The City annually serves as a pass-through agent between the Volunteer Center and the SCCRTC. Accordingly, the Volunteer Center is again requesting that the City act as claimant for funds for the coming Fiscal Year (FY) 2027. Since the Volunteer Center is unable to act as claimant for itself, it must request that an outside entity perform this service.

DISCUSSION: The Santa Cruz County Regional Transportation Commission has budgeted $108,897 for fiscal year 2027, which is typically disbursed in one lump-sum payment. See Exhibits A, Program Description/Scope of Work; B, TDA FY 2027 Budget; C, Volunteer Center Letter of Request; D, SCCRTC Volunteer Center Resolution; and E, SCCRTC Apportionment Schedule.

As noted in the SCCRTC Apportionment Schedule, the SCCRTC has granted funding to Volunteer Center for $108,897 for FY 2027.

The City contract stipulates in Item 3 that the City will make the payment to the Volunteer Center based on the amount received from the SCCRTC in each fiscal year. In addition, SCCRTC’s bylaws stipulate that changes may occur in funding amounts, as needed, during the course of a fiscal year.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: This is not a project under CEQA.

17.1 HEALTH IN ALL POLICIES (HiAP): This action promotes community connectedness. By acting as a pass-through agent, the City supports the Volunteer Center’s continued outreach within the community. This specific program prioritizes providing rides for medical requests, ensuring access to care for those who may not have easily accessible transportation.

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 of Santa Cruz will serve as a pass-through agent.

The only impact to the City is staff time to act as the pass-through agent.

Prepared By:

Nicholas Gong
Finance Manager
Submitted By:

Elizabeth Cabell
Director of Finance
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. VOLUNTEER CENTERS OF SC COUNTY FY27 AGREEMENT.PDF

2. VOLUNTEER CENTERS OF SC COUNTY FY27 EXHIBITS A-E.PDF

17.2 17.3

17.4 17.5

17.6 17.7

17.8 17.9

17.10 17.11

17.12 17.13
City Council

AGENDA REPORT
DATE: 06/04/2026
AGENDA OF: 06/23/2026
DEPARTMENT: Finance
SUBJECT: Liability Claims Filed Against the City of Santa Cruz (FN) RECOMMENDATION: Motion to reject the liability claims of 1) James Edward Abbott, 2) Robert Ambrose Buchanan, IV, 3) Steven Raul Enriquez, 4) John Roskelley, 5) Glenn Wilson, 6) Lorraine Barnard, 7) Olivia Finestead, and 8) Maeson Clevinger, based on staff recommendation.

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

1. Claimant: James Edward Abbott
Date of occurrence: 11/22/2025
Date of claim: 5/21/2026
Amount of claim: Unspecified
Claimant seeks compensation for damages allegedly resulting from police action.

Self-Represented

2. Claimant: Robert Ambrose Buchanan, IV
Date of occurrence: 11/26/2025
Date of claim: 5/22/2026
Amount of claim: Unspecified
Claimant seeks damages for injuries allegedly sustained in a bicycle accident involving a thirdparty vehicle in the unincorporated area of Santa Cruz County.

Represented by Legal Counsel

18.1 3. Claimant: Steven Raul Enriquez
Date of occurrence: 3/19/2026
Date of claim: 5/28/2026
Amount of claim: Unspecified
Claimant seeks damages for injuries allegedly caused by a Santa Cruz Metropolitan Transit District bus.

Represented by Legal Counsel

4. Claimant: John Roskelley
Date of occurrence: 12/18/2025
Date of claim: 5/28/2026
Amount of claim: Unspecified
Claimant seeks compensation for damages allegedly caused by a poor work environment.

Represented by Legal Counsel

5. Claimant: Glenn Wilson
Date of occurrence: 12/5/2025
Date of claim: 6/3/2026
Amount of claim: $1,000,000.00
Claimant seeks compensation for injuries allegedly sustained during an incident that occurred while visiting Natural Bridges State Beach.

Represented by Legal Counsel

6. Claimant: Lorraine Barnard
Date of occurrence: 3/12/2026
Date of claim: 6/2/2026
Amount of claim: $150,000.00
Claimant seeks reimbursement for damages to her vehicle and personal injuries allegedly caused by a manhole cover.

Represented by Legal Counsel

7. Claimant: Olivia Finestead
Date of occurrence: 3/12/2026
Date of claim: 6/2/2026
Amount of claim: $150,000.00
Claimant seeks reimbursement for personal injuries allegedly caused by a vehicle colliding with a loose manhole cover.

Represented by Legal Counsel

18.2 8. Claimant: Maeson Clevinger
Date of occurrence: 3/12/2026
Date of claim: 6/2/2026
Amount of claim: $50,000.00
Claimant seeks reimbursement for personal injuries allegedly caused by a vehicle colliding with a loose manhole cover
Represented by Legal Counsel
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.

18.3 City Council

AGENDA REPORT
DATE: 06/03/2026
AGENDA OF: 06/23/2026
DEPARTMENT: Finance
SUBJECT: Finance Department Temporary Staffing (FN)
LOCATION: Citywide
RECOMMENDATION: Motion to authorize the City Manager to execute a contract amendment to the City’s existing agreement with Robert Half, Inc., in a form to be approved by the City Attorney, for temporary staffing services in the Finance Department, increasing the contract amount by $60,000.00 for a revised total not-to-exceed amount of $140,000.00.

BACKGROUND: On February 10, 2026, the City of Santa Cruz entered into an agreement with Robert Half, Inc. to provide temporary professional staffing services on an as-needed basis. The Finance Department has utilized these services to provide coverage during employee leaves and to support time-sensitive financial operations. Due to workload demands and operational needs within the Finance Department, the originally approved contract amount is projected to be fully expended prior to the end of the fiscal year.

DISCUSSION: The Finance Department continues to experience staffing impacts related to increased workload associated with the implementation of the City’s new Enterprise Resource Planning (ERP) system, budget preparation, extended leaves, and vacancies. Temporary staffing support has allowed the Department to maintain continuity of operations, meet statutory deadlines, and ensure timely processing of payroll, accounts payable, and financial reporting requirements.

Robert Half has provided qualified accounting and finance professionals who are able to perform assigned duties with minimal on-boarding and in compliance with City policies and procedures.

Continued temporary staffing support is necessary to maintain service levels, meet regulatory deadlines, and ensure uninterrupted financial operations. It is anticipated that this staffing support will end by November 2026 at the latest.

Approval of this change order will ensure uninterrupted financial operations and compliance with regulatory and reporting requirements during the one of the most intensive phases of the City’s ERP system transition that will modernize how the City does business.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed Council action is not a “project” under CEQA. (Public Resources Code § 21065.)

19.1 HEALTH IN ALL POLICIES (HiAP): The proposed Council action is consistent with the HiAP pillar of sustainability because it will help to ensure that the City maintains fiscal stability and uninterrupted core services.

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 proposed increase of $60,000 will be funded through the Finance Department’s FY 2026 operational budget. Sufficient appropriations are available within existing personnel and contractual services accounts to cover the additional costs. No General Fund budget amendment is required.

Prepared By:

Rachel Rodriguez
Buyer I
Submitted By:

Elizabeth Cabell
Finance Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

19.2 City Council

AGENDA REPORT
DATE: 06/04/2026
AGENDA OF: 06/23/2026
DEPARTMENT: Human Resources
SUBJECT: Service Employees International Union, Local 521, Memorandum of Understanding (HR)
LOCATION: Citywide
RECOMMENDATION: Motion to adopt a resolution adopting the successor Memorandum of Understanding between the Service Employees International Union, Local 521 (SEIU) and the City of Santa Cruz, effective October 11, 2025 through October 10, 2028.

BACKGROUND: On November 18, 2025 a Tentative Agreement on the successor MOU was brought to 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 SEIU expired on October 10, 2025. The SEIU 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 SEIU and the City have reached a Tentative Agreement on a successor MOU.

As with other labor contracts, the approach to determining successor Service Employees’ 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 is 9.6% below market. The City considers classifications within 5% of the market as competitive. The 2025 compensation study includes approximately 44 service classifications across varying city services such as administration, purchasing, accounting, code compliance, building inspection, library services, building maintenance, wastewater and water operations, plan review, and more.

The SEIU 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 7- Union Rights
 Section 8- Personnel Actions
 Section 9- Work Assignments
 Section 10- Pay Rates and Practices

20.1  Section 11- Holidays
 Section 12- Vacation
 Section 13- Sick Leave
 Section 14- Leaves of Absence
 Section 15- Benefits
 Section 16- Safety
 Section 19- Career Advancement
 Section 21- Grievance Procedure
 Section 22- Disciplinary Appeals Procedure
 Section 23- Discipline
 Section 21- Temporary Employees
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 POA 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 wellbeing.

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 adopted budget.

Prepared and Submitted By:

Sara De Leon
HR Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION APPROVING SUCCESSOR MOU FOR SEIU.DOCX

2. SEIU MOU_2025-2028_CLEAN.DOCX

3. SEIU MOU_2025-2028_REDLINED.DOCX

20.2 RESOLUTION NO. NS-XX,XXX

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

SUCCESOR MEMORANDUM OF UNDERSTANDING WITH THE SERVICE EMPLOYEES INTERNATIONAL UNION, LOCAL 521
WHEREAS, representatives of the City of Santa Cruz and Service Employees International Union, Local 521 (SEIU) have met and conferred in good faith to bargain for a successor agreement; and
WHEREAS, the Tentative Agreement with the SEIU has been entered into by the respective parties effective October 11, 2025 and duly ratified by the SEIU 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 Service Employees International Union, Local 521, effective October 11, 2025 and expiring October 10, 2028
PASSED AND ADOPTED this 23rd day of June, 2026 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

20.3 2025-2028

MEMORANDUM OF UNDERSTANDING

CITY OF SANTA CRUZ AND

CITY OF SANTA CRUZ SERVICE EMPLOYEES
Service Employees International Union, Local 521
October 11, 2025 – October 10, 2028

20.4 2
2025-2028

MEMORANDUM OF UNDERSTANDING

CITY OF SANTA CRUZ AND
CITY OF SANTA CRUZ SERVICE EMPLOYEES, S.E.I.U., LOCAL 521

TABLE OF CONTENTS
SECTION 1.00 – PREAMBLE .........................................................................................................................20 SECTION 2.00 – TERM (Regular and Temporary Employees)......................................................................20 SECTION 3.00 - NO ABROGATION OF RIGHTS (Regular and Temporary Employees)....................................20 SECTION 4.00 - PAST PRACTICES (Regular and Temporary Employees)......................................................21 SECTION 5.00 – RECOGNITION (Regular and Temporary Employees) ........................................................21 SECTION 6.00 - NO DISCRIMINATION (Regular and Temporary Employees)...............................................21 SECTION 7.00 - UNION RIGHTS (Regular and Temporary Employees)........................................................22

7.01 Payroll Deductions ....................................................................................................................22

7.01.01 Confidential Employees ....................................................................................................23

7.02 Memorandum of Understanding - Printing and Distribution .....................................................23

7.03 Union Notification ....................................................................................................................23

7.04 Display Space and Department Mail .........................................................................................23

7.05 Time Off for Union Officials.......................................................................................................23

7.05.01 Meet and Confer or Consult Sessions...............................................................................23

7.05.02 Union Stewards .................................................................................................................24

7.05.03 Chief Stewards...................................................................................................................24

7.05.04 Union Leave ....................................................................................................................24

7.06 Access to City Facilities ..............................................................................................................25

7.07 Bargaining Unit Employee Information.....................................................................................26

7.08 Area Meetings ...........................................................................................................................26

7.09 C.O.P.E. Deduction .....................................................................................................................27

7.10 New Employee Orientation.......................................................................................................27

7.11 Weingarten Rights.....................................................................................................................27

7.12 Labor Management Meeting ....................................................................................................27 SECTION 8.00 - PERSONNEL ACTIONS (Regular and Temporary)................................................................28

8.01 Personnel Files (Regular Employees).........................................................................................28

8.01.01 Performance Evaluations.................................................................................................29

8.01.02 Late Evaluations...............................................................................................................29

8.02 Probation (Regular Employees).................................................................................................30

20.5 3

8.02.01 Probationary Period.........................................................................................................30

8.02.02 Objective of Probationary Period.....................................................................................30

8.02.03 Rejection of Probationary Employee ...............................................................................30

8.02.04 Extension of Probation.....................................................................................................31

8.03 Salary Steps, Personnel Files and Performance Evaluations (Temporary Employees)..............31

8.03.01 Personnel Files .................................................................................................................31

8.03.02 Performance Evaluations .................................................................................................31

8.03.03 Late Evaluations ...............................................................................................................32

8.03.04 Salary Rates Upon Appointment ......................................................................................32

8.03.05 Advancement within the Salary Range.............................................................................32 SECTION 9.00 - WORK ASSIGNMENTS (Regular Employees).......................................................................33

9.01 Work Shifts ................................................................................................................................33

9.02 Alternate Schedules/Flex Time, Telework, VTO and Developmental Assignments...................33

9.02.01 Voluntary Time Off...........................................................................................................33

9.02.02 Developmental Assignments ...........................................................................................33

9.03 Sanitation Work Hours...............................................................................................................33

9.04 Part-Time Employees.................................................................................................................34

9.05 Seniority.....................................................................................................................................34

9.06 Lunch Period .............................................................................................................................34

9.07 Rest Periods ..............................................................................................................................34

9.08 Clean-Up Time ...........................................................................................................................34

9.08.01 Dress Time ........................................................................................................................35

9.09 Emergency Meals ......................................................................................................................35

9.10 Light Duty Assignments..............................................................................................................35

9.11 Parks Work Schedule ................................................................................................................35

9.12 Employment of “Regular, Limited Term” Employees.................................................................36

9.12.01 Definition .........................................................................................................................36

9.12.02 Notification to Employee..................................................................................................36

9.12.03 Terms and Conditions......................................................................................................36

9.13 Water Treatment Plant Operator Shift Selection......................................................................37 SECTION 10.00 - PAY RATES AND PRACTICES (Regular and Temporary).....................................................37

10.01 Salary Steps (regular) ............................................................................................................38

10.01.01 Salary Rates Upon Appointment ..................................................................................38

10.01.02 Advancement within the Range ...................................................................................38

10.02 Salary/Retirement (Regular Employees)...............................................................................39

20.6 4

10.02.01 Employees Hired On or Before May 11, 2012 (Tier I)...................................................39

10.02.02 Employees Hired on or After May 12, 2012 but before January 1, 2013 (Tier II).........40

10.02.03 Employees Hired on or After January 1, 2013 (Tier III) ................................................41

10.02.04 Retirement, All Regular Employees..............................................................................41

10.02.05 Sick Leave Conversion ..................................................................................................42

10.03 Longevity ...............................................................................................................................42

10.04 Working Out of Classification (Regular Employees) ..............................................................42

10.05 Shift Differential (Regular Employees) ..................................................................................43

10.05.01 Evenings .......................................................................................................................43

10.05.02 Weekends.....................................................................................................................43

10.06 Lone Operator Differential ....................................................................................................43

10.06.01 Water Plant Lone Operator ..........................................................................................44

10.06.02 Wastewater Plant Lone Operator.................................................................................44

10.07 Overtime (Regular Employees) .............................................................................................44

10.08 Callback (Regular Employees) ...............................................................................................45

10.08.01 Callback by Phone or Computer...................................................................................45

10.08.02 Callback to Worksite.....................................................................................................45

10.09 Duty Assignment (Regular Employees) .................................................................................46

10.09.01 Definition......................................................................................................................46

10.09.02 Assignment...................................................................................................................46

10.09.03 Compensation ..............................................................................................................46

10.09.04 Fatigue Pay ...................................................................................................................47

10.10 Bilingual Pay .........................................................................................................................48

10.11 City Translator (Regular Employees) .....................................................................................48

10.12 Overpayments and Repayment of Funds .............................................................................48

10.13 Reimbursement for Licenses and Certificates (Regular Employees) .....................................49

10.14 Departmental Technology Coordinator Differential (Regular Employees) ...........................49

10.15 Leak Detection (Regular Employees) ....................................................................................49

10.16 Water Department SCADA System Coordinator (Regular Employees) .................................49

10.17 Water Department Store Keeper (Regular Employees).........................................................49

10.18 Scuba Diving Premium Pay (Regular Employees)..................................................................50

10.19 Confined Space Rescue Premium Pay (Regular Employees).................................................50

10.20 Alternative Transportation Incentive Program (Regular Employees) ...................................50

10.21 Planning Department Certification Compensation Incentive Premium Pay (Regular Employees) .............................................................................................................................................51

20.7 5

10.22 Hazardous Materials Premium Pay (Regular Employees).....................................................52 SECTION 11.00 – HOLIDAYS (Regular Employees) ......................................................................................52

11.01 Fixed Holidays........................................................................................................................52

11.02 Floating Holidays ...................................................................................................................53

11.03 Holiday Work.........................................................................................................................53

11.04 Holiday on Regular Day Off ...................................................................................................53

11.05 Holidays During Vacation ......................................................................................................54

11.06 Holiday Pay-off......................................................................................................................54 SECTION 12.00 – VACATION (Regular Employees)......................................................................................54

12.01 Accrual ..................................................................................................................................54

12.02 Scheduling of Vacation ..........................................................................................................54

12.03 Illness During Vacation...........................................................................................................54

12.04 Rate of Maximum Vacation Accrual ......................................................................................54 SECTION 13.00 - SICK LEAVE (Regular Employees)......................................................................................55

13.01 Definition ..............................................................................................................................55

13.02 Accrual and Use.....................................................................................................................55

13.02.01 Family Sick Leave ..............................................................................................................55

13.03 Limitations ............................................................................................................................55

13.04 Sick Leave Incentive Program ................................................................................................56 SECTION 14.00 - LEAVES OF ABSENCE (Regular Employees).......................................................................56

14.01 Paid Leaves of Absence .........................................................................................................56

14.01.01 Personal Business Leave ...............................................................................................56

14.01.02 Bereavement Leave......................................................................................................56

14.01.03 Jury Duty.......................................................................................................................56

14.01.04 Absence for Examination...............................................................................................57

14.01.05 Blood Donations ...........................................................................................................57

14.01.06 Military Duty.................................................................................................................57

14.01.07 Workers’ Compensation...............................................................................................57

14.01.08 Paid Birth/Adoptive Leave ............................................................................................58

14.01.09 Critical Incident/Recovery Leave..................................................................................58

14.02 Unpaid Leaves of Absence.....................................................................................................58

14.02.01 Medical or Personal Leave ...........................................................................................58

14.02.02 Pregnancy Disability Leave ...........................................................................................58

14.02.03 Family Leave..................................................................................................................59

14.03 Continuation of Insurance Benefits During Unpaid Leaves of Absence.................................60

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14.03.01 Personal Leave..............................................................................................................61

14.03.02 Medical Leave...............................................................................................................61

14.03.03 Family Leave..................................................................................................................61 SECTION 15.00 – BENEFITS (Regular Employees) .......................................................................................61

15.01 Medical Benefits ...................................................................................................................61

15.02 Dental Insurance ...................................................................................................................62

15.03 Vision.....................................................................................................................................62

15.04 Long Term Disability..............................................................................................................62

15.04.01 Short Term Disability....................................................................................................62

15.05 Part-Time Employees - Benefits Proration .............................................................................63

15.06 Medical Plan..........................................................................................................................63

15.07 Retiree Health Program.........................................................................................................63

15.08 Life Insurance ........................................................................................................................63

15.09 Uniform Allowance................................................................................................................64

15.10 Equipment Mechanic Tools...................................................................................................64

15.11 Principal Domestic Partners...................................................................................................64 SECTION 16.00 – SAFETY (Regular and Temporary Employees) .................................................................64

16.01 Intent ....................................................................................................................................64

16.02 Safety Committee .................................................................................................................65

16.03 Safety Boots...........................................................................................................................65 SECTION 17.00 - REDUCTION IN FORCE (Regular and Temporary Employees)...........................................65

17.01 Layoffs...................................................................................................................................65

17.02 Bumping................................................................................................................................66

17.03 Notification ...........................................................................................................................67

17.04 Reassignment........................................................................................................................67

17.05 Reinstatement.......................................................................................................................67

17.06 Continuation of Insurance Benefits.......................................................................................67

17.07 Retirement in Lieu of Layoff ..................................................................................................67

17.08 Improper Layoff.....................................................................................................................67

17.09 Transition Training .................................................................................................................67 SECTION 18.00 - CONTRACTING OUT..........................................................................................................68 SECTION 19.00 - CAREER ADVANCEMENT (Regular and Temporary Employees).......................................68

19.01 Career Ladders ......................................................................................................................68

19.02 Job Opening Announcements................................................................................................68

19.03 Training ................................................................................................................................69

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19.04 Cross Training .......................................................................................................................69

19.05 Certification of Eligibles for Promotional Examinations (Regular Employees) ......................69

19.06 Reimbursement for License and Certificates (Temporary Employees).................................69

19.07 Absence for Examination (Temporary Employees)...............................................................69 SECTION 20.00 - TUITION REIMBURSEMENT(Regular employees) .............................................................69 SECTION 21.00 - GRIEVANCE PROCEDURE (Regular Employees)................................................................70

21.01 Purpose .................................................................................................................................70

21.02 Definition ..............................................................................................................................70

21.03 Limitations ............................................................................................................................70

21.04 Procedures ............................................................................................................................70 Step I:.................................................................................................................................................70 Step II:.................................................................................................................................................71 Step III:................................................................................................................................................71 Step IV:................................................................................................................................................71 SECTION 22.00 - DISCIPLINARY APPEALS PROCEDURE (Regular Employees)..............................................72

22.01 Definition ..............................................................................................................................72

22.02 Pre-Action Procedure............................................................................................................72

22.03 Post-Action Appeal................................................................................................................73 SECTION 23.00 – DISCIPLINE (Regular Employees) .....................................................................................74

23.01 Disciplinary Procedures.........................................................................................................74

23.02 Notice of Proposed Disciplinary Action.................................................................................74

23.03 Written Reprimands..............................................................................................................74 SECTION 24.00 – COMPENSATION STUDY ..................................................................................................75 SECTION 25.00 - AUTHORIZED AGENTS ......................................................................................................75 SECTION 26.00 - RENEGOTIATIONS ............................................................................................................76 SECTION 27.00 - SEVERABILITY ...................................................................................................................76 SECTION 28.00 - HOLIDAY CLOSURE (Regular Employees) .........................................................................76 SECTION 29.00 - AUTOMATIC DEPOSIT-NEW HIRES (Regular Employees).................................................76 SECTION 30.00 - ELECTRONIC PAY STUBS (Regular Employees).................................................................76 SECTION 31.00 – TEMPORARY EMPLOYEES................................................................................................77

31.01 Work Assignments ................................................................................................................78

31.01.01 Work Shifts ...................................................................................................................78

31.01.02 Lunch Period.................................................................................................................78

31.01.03 Rest Periods..................................................................................................................78

31.02 Salary.....................................................................................................................................78

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31.02.01. Salary Upon Return to Temporary Employment ..........................................................78

31.02.02 Salary Step When Hired Into a Regular Position ..........................................................79

31.02.03 EMT Differential ...........................................................................................................79

31.02.04 Beach Lifeguard II Duty Officer Stipend ......................................................................79

31.02.05 Call Back .......................................................................................................................79

31.02.06 Duty Assignment – Marine Rescue Unit Members Only ..............................................80

31.02.07 Duty Assignment – All Other Temporary Service Employees.......................................80

31.02.08 Holiday Premium Pay ...................................................................................................81

31.03 Seniority................................................................................................................................81

31.04 Overtime ...............................................................................................................................81

31.05 Leaves of Absence................................................................................................................82

31.05.01 Bereavement Leave......................................................................................................82

31.05.02 Jury Duty.......................................................................................................................82

31.05.03 Blood Donations...........................................................................................................83

31.05.04 Worker’s Compensation...............................................................................................83

31.06 In-Lieu Paid Time...................................................................................................................83

31.07 Sick Leave..............................................................................................................................83

31.08 Benefits .................................................................................................................................85

31.08.01 Health Care Reimbursement ........................................................................................85

31.08.02 Bus Passes ....................................................................................................................85

31.08.03 CalPERS Long Term Care...............................................................................................85

31.08.04 Medicare ......................................................................................................................85

31.08.05 Alternative Transportation Incentive Program ............................................................85

31.09 Grievance Procedure ............................................................................................................85

31.09.01 Purpose ........................................................................................................................85

31.09.02 Definition......................................................................................................................85

31.09.03 Limitations....................................................................................................................85

31.09.04 Procedures ...................................................................................................................86

31.10 Discipline...............................................................................................................................87

31.11 Written Reprimands..............................................................................................................87

31.12 Labor/Management Committee ...........................................................................................87

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EXHIBIT A - SERVICE CLASSIFICATIONS AND SALARY
COMPENSATION PLAN ....................................................................55

EXHIBIT B - STATEMENT OF EQUAL EMPLOYMENT
OPPORTUNITY AND NON-DISCRIMINATION POLICY ...........66

EXHIBIT C - DISCRIMINATION/HARASSMENT POLICY
AND COMPLAINT PROCEDURE.....................................................70 EXHIBIT D - DIVISION STEWARDS .......................................................................75 EXHIBIT E - CLASSIFICATIONS REQUIRING SAFETY BOOTS.....................76

TABLE OF CONTENTS

SECTION TITLE PAGE

EXHIBIT F - AGREEMENT REGARDING ASSISTANT TO LANDFILL
OPERATIONS ASSIGNMENT ................................................................78 EXHIBIT G –RESPECTFUL WORKPLACE CONDUCT …………………………..80
EXHIBIT H – CONFIDENTIAL CLASSIFICATIONS ………………………............89 EXHIBIT I – CLASSIFICATIONS ELIGIBLE TO RECEIVE HAZARDOUS MATERIALS PREMIUM PAY ................................................................90

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2022-2025

MEMORANDUM OF UNDERSTANDING

CITY OF SANTA CRUZ
AND
CITY OF SANTA CRUZ SERVICE EMPLOYEES, S.E.I.U., LOCAL 521 SECTION 1.00 – PREAMBLE
This Memorandum of Understanding is entered into by the City of Santa Cruz (hereinafter referred to as the City) and the City of Santa Cruz Service Employees, Service Employees International Union, Local 521 and the City of Santa Cruz Temporary Service Employees, Service Employees’ International Union, SEIU Local 521, (hereinafter referred to as the Union), and, upon ratification by the Union membership and a determination is made by the City Council, is binding under Section 3505.1 of the Government Code.

The City and the Union have met and conferred in good faith and have arrived at an understanding concerning wages, hours, working conditions and other terms of employment.

The City and the Union recognize their obligation to provide services of the highest quality and efficiency to the community.

The City and the Union affirm the principal that harmonious labor/management relations are to be promoted and furthered.

SECTION 2.00 – TERM (REGULAR AND TEMPORARY EMPLOYEES)
The term of this agreement shall begin on October 11, 2025, or when Council approves the successor MOU in open session, whichever is later, and shall fully terminate on October 10, 2028.

Unless otherwise stated herein, all payroll related changes identified in this agreement will commence with the pay period beginning October 11, 2025, or the pay period when Council approves the successor MOU in open session, whichever is later. .

SECTION 3.00 - NO ABROGATION OF RIGHTS (REGULAR AND

TEMPORARY EMPLOYEES)
The parties acknowledge that City responsibilities and rights as indicated in current Article 1, Section 1, (Appendix A) of the City Personnel Rules and Regulations and all applicable State or Municipal laws are neither abrogated nor made subject to the meet and confer process by adoption of this Memorandum of Understanding.

Pursuant to Article 1, Section 1, (Appendix A), the City’s rights include, but are not limited to the exclusive right to determine the mission of its constituent departments, commissions, and boards; to determine the procedures and standards of selection for employment and promotion; to direct its employees; to assign work to employees in accordance with the requirements determined by the City; to establish and change work schedules and assignments; to determine the content of job classifications; to hire, transfer and promote or to lay-off employees for lack of work; to suspend, discipline and discharge employees for proper cause; to expand or to diminish services; and to determine the methods, means and personnel by which government operations are to be conducted, except as specifically modified by the terms of the Memorandum of Understanding.

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The parties further acknowledge that the rights of employees are neither abrogated nor diminished by the adoption of this Memorandum of Understanding.

SECTION 4.00 - PAST PRACTICES (REGULAR AND TEMPORARY

EMPLOYEES)
The parties agree that they shall adhere to established labor relation’s principles in handling past practices. The parties agree that a past practice may be established if the practice meets all of the following:
1) The practice is unequivocal and consistently performed; 2) The practice is clearly communicated by the City and acted upon by the Union or clearly communicated by the Union and acted upon by the City; and 3) The practice is readily identifiable over a reasonable period of time as a fixed and established practice accepted by both parties.

The parties agree in handling past practice issues within the scope of representation:
1) Past practices superseded by revised M.O.U. language are null and void; 2) Past practices which contradict existing M.O.U. language or written City rules shall be null and void upon reasonable notice from the City that the language will be followed;
3) Past practices within scope which are not covered by M.O.U. language or City rules shall remain in effect through the term of the M.O.U. unless changed through mutual agreement.

SECTION 5.00 – RECOGNITION (REGULAR AND TEMPORARY

EMPLOYEES)
Pursuant to the Meyers-Milias-Brown Act and the City’s Personnel Rules and Regulations, the Union is certified as the recognized employee organization for full-time, limited-term (See Section 9.12), and part-time regular employees in classifications listed in the City’s Salary Compensation Plan for Service Employees, the current version of which is Exhibit A attached hereto; and temporary employees (See Section 31 and Exhibit A2). This unit shall be titled Service Employees.

SECTION 6.00 - NO DISCRIMINATION (REGULAR AND TEMPORARY

EMPLOYEES)
A. The Union and the City agree to adhere to the City Council policies pertaining to the prevention of discrimination, harassment, and disrespectful workplace conduct as listed in Exhibits B, C, and G as well as applicable Federal and State discrimination law.

B. Neither the City, nor the Union, shall interfere with, intimidate, coerce or discriminate against City employees because of their exercising their right to form, join, and participate in the activities of the Union, or exercising their right to refuse to join or participate in the activities of the Union.

SECTION 7.00 - UNION RIGHTS (REGULAR AND TEMPORARY

EMPLOYEES)

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7.01 PAYROLL DEDUCTIONS
A. The City shall honor the terms of the employee’s authorization for Union deductions, for example, any terms of a membership and deduction authorization card the Union has supplied the employee. The employee may only revoke the authorization pursuant to the terms of the authorization the employee signed.

B. Deductions shall start the pay period after the City receives notification of the authorization. The City shall transmit such payments to the Union through electronic funds no later than thirty (30) days after the deduction from the employee’s earnings occur.

C. Requests to authorize payroll deductions for Union purposes or COPE deductions shall be directed by the employees to the Union rather than the City. Requests to revoke or change the authorization shall also be directed to the Union rather than the City. The City shall rely on the Union’s explanation in a certified list, submitted by a representative of the Union who has the authority to bind the Union, regarding whether authorization/ revocations/ changes in deductions have been requested by the represented employees.

D. The Union shall not provide the City a copy of the employee’s authorization unless a dispute arises about the existence or terms of the authorization.

E. The City shall on a bi-weekly basis, provide the Union with an electronic file containing payroll information for SEIU 521 employees including the following information:
name; job classification; department; work location; work phone; work email (if available); personal email (if available); home address; mailing address; cell phone (if available); home telephone number; date of birth; date of hire; hourly rate; status (part-time or full-time); union deductions; annual salary; and employee identification number.

F. The Union shall indemnify, defend, protect and hold harmless the City and its elected and appointed officials, officers, employees, officers and agent (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 Sections 7.01-7.10, including, but not limited to, any claims made by any represented employees for the dues deductions the City made in reliance on the Union’s certification, and any claims made by any represented 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 Sections 7.01-7.10.

G. Violations of this section of the MOU are grievable.

7.01.01 Confidential Employees
Employees filling positions designated as confidential (see Exhibit H) are represented and may hold membership in the Union but are excluded from active participation as negotiators, committee chairpersons, or any other role in which they represent the Union in matters within the scope of representation pursuant to Section 3507.5 of the Meyers-Milias-Brown Act.

7.02 MEMORANDUM OF UNDERSTANDING - PRINTING AND DISTRIBUTION

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The City and Union will share the cost of printing copies of this Memorandum of Understanding in a mutually agreeable format and make it available to all members. Such distribution shall only occur during an employee’s rest period, meal break or non-work time.

When a person is hired in any classification covered by this Memorandum of Understanding, the City shall notify the person that the Union is the recognized employee organization and of the agency shop provision. The City will provide that person with a copy of the current Memorandum of Understanding.

7.03 UNION NOTIFICATION
Except in cases of bona fide emergencies, the Union shall be given fourteen (14) calendar days’ advance written notification of any ordinance, rule, resolution or regulation directly 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.

7.04 DISPLAY SPACE AND DEPARTMENT MAIL
The City shall provide display space at each facility covered by this Agreement, for the posting of notices approved by the Union. It shall be the Union’s responsibility to maintain the information on the display space. The display space will be clearly marked as Union Display Space.

The Union shall have reasonable access to display space and departmental mail for the purpose of Union communications.

7.05 TIME OFF FOR UNION OFFICIALS

7.05.01 Meet and Confer or Consult Sessions
During the term of this agreement, a reasonable number of Union members (eight plus the President or Vice-President of the Local) shall be allowed a reasonable amount of paid release time off for meet and confer or meet and consult sessions scheduled with the City Council’s designated representative, providing there is no disruption of work in the employee’s division.

The exact number to be released shall be determined by mutual agreement prior to the session; and shall vary by the type of issue being discussed (i.e., single department affected, multiple departments affected, etc.). The Union shall notify the Human Resources Director in advance of the meeting of the names of members who will be in attendance.

Human Resources will request release time from the supervisors of those Union members before leaving their work or work locations, such Union members will obtain permission from their supervisors. Supervisors are assumed to have granted such permission unless they respond otherwise to the request from Human Resources.

7.05.02 Union Stewards
The Union shall be authorized to designate regular employees within the unit as stewards, not to exceed twenty- five (25) in number, and must furnish a list of these stewards to the Human Resources Department annually and as needed when changes occur. Stewards shall be allowed

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a reasonable amount of paid release time for the purpose of representing a unit employee within the steward’s area of representation as shown in Exhibit D in the filing or processing of identified grievances or disciplinary appeals as long as there is no disruption of work in the employee’s division. The Union may designate an alternative representative when it deems appropriate. Stewards must first obtain permission through appropriate management channels before leaving their work or work location for such purposes. This provision shall be limited to periods of regular working hours. It is agreed the City shall not pay stewards for time spent in handling grievances when they are not regularly scheduled to work.

The Union shall be authorized to designate temporary employees within the unit as stewards, not to exceed five (5) in number and must furnish a list of these stewards to the Human Resource Department on a biannual basis (twice per year). If a designated steward is not available, temporary workers, may utilize stewards from the regular bargaining unit. Stewards shall be allowed a reasonable amount of paid release time for the purpose of representing a unit employee within the steward’s area of representation as shown below in the filing or processing of identified grievances as long as there is no disruption of work in the employee’s division. The Union may designate an alternative representative when it deems appropriate. Stewards must first obtain permission through appropriate management channels before leaving their work or work location for such purposes, and release shall not be unreasonable denied. This provision shall be limited to periods of regular working hours. It is agreed the City shall no pay stewards for time spent in handling grievances when they are not regularly scheduled to work.

The five (5) Union Stewards will each represent one of the following designated areas:

1. Beach

2. Library

3. Parks and Recreation

4. At Large

5. At Large

7.05.03 Chief Stewards
The Union may designate up to seven (7) Chief Stewards, five (5) from the permanent workforce and two (2) from the temporary workforce. Chief Stewards shall be entitled to release time to replace stewards when the Division Steward is not available.

7.05.04 Union Leave
A. Short-Term Leave (REGULAR EMPLOYEES)
This article satisfies the requirements under Senate Bill 1085. 1) Upon request of the designated representative, and with two (2) day’s notice, and approval by the Human Resources Director or their designee, each union steward shall be given paid release time up to four (4) hours within one workday for union related activities outside of the Meyers-Milias-Brown Act (MMBA) mandated release time for steward responsibilities (meet and confers, representation, bargaining, labor management, grievance handling, new hire orientations’, etc.) MMBA mandated release time shall not pull from the bank,
2) Two week’s notice shall be given when requesting time above four (4) hours up to eight (8) hours from this bank.
3) A union time bank shall be established which provides a total time bank of 1,200 hours per calendar year that may be used to provide release time for the President, Vice - President, or Steward.
4) The President, Vice-President, and stewards agree to track their use of release time by

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inputting the appropriate code provided by the City into their timecard. 5) Limitations:
i. This leave is coordinated at the request of the SEIU Authorized Agent(s), and not usable by the President, Vice-President, and stewards individually or at will.

Notices shall be provided to the Human Resources Director or their designee. ii. This leave may be used for up to four hours within one workday with two days notice. Hours above four (4) may be used with two weeks advance notice. iii. Two week’s notice shall be given when requesting release for more than eight (8) stewards at any time.
iv. SEIU will coordinate with the City when using more than four (4) hours in a day or two (2) or more stewards in the same classification to alleviate adverse impacts that may arise.
v. The President and Vice-President may each use up to eight (8) hours in a pay period.
vi. An individual steward may use up to eight (8) hours in one calendar month. vii. This leave is not meant to be used towards leave referenced in the long-term leave section.
viii. All leave in this section must receive prior approval by the Human Resources Director or their designee. This article is not subject to the grievance procedure.

B. Long-Term Union Leave (REGULAR EMPLOYEES)
Upon request of the Union’s Santa Cruz Area Director designated representative(s), the President, Vice-President, or stewards may request unpaid release time not to exceed twelve (12) months for Union business. This request will be made two weeks in advance. The President, Vice-President, or stewards granted such leave, who has regular status in their job class, shall have the right to return to their former position. In the event that the worker wants to continue benefits coverage (including medical, dental, vision and life insurance) through the City plans, arrangements will be made for the Union to reimburse the City for costs associated with continuing such coverage.

The Union may have the City Chapter President or Vice President of the Union released on work time to attend City Council meetings on matters within the scope of representation related to bargaining unit employees, upon approval of the Human Resources Director.

C. Union Leave (TEMPORARY EMPLOYEES)
Upon request of the Union’s Santa Cruz Area Director, workers who are Union members may request unpaid release time not to exceed twelve (12) months for Union business.

7.06 ACCESS TO CITY FACILITIES
With a minimum of two-days notice within the regular work week (M-F) and the approval of the site administrator, the Union’s representative may meet with members on City facilities during the non-working hours of the employees involved. For the purpose of Union access, employees involved who have a paid lunch shall be allowed to attend a meeting pursuant to the above, however, if called back to work the employee shall return to their duties. The non-working hours restriction does not apply to the handling of grievances. A reasonable effort will be made to accommodate the Union representative.

7.07 BARGAINING UNIT EMPLOYEE INFORMATION
A. Bargaining Unit Employee List

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On a bi-weekly basis, the City shall supply the Union with a comprehensive list of all employees covered by this MOU with the following information: full name, employee number, job classification, date of hire, termination date (if employment has ended), hourly rate, annual salary, date of birth, department, work location, work phone, work email (if available), personal email (if available), home address, mailing address, home phone, cellular phone (if available), and employment status (to include date of separation, etc.), to the extent permitted by law. The City shall provide the last pay period worked if administratively feasible. The City shall continue to provide separate spreadsheets of the above information for permanent and temporary employees. Upon request from the Union, the City shall provide the Union with a list of employees who have been recently promoted to classifications outside of the bargaining unit during a specified time frame.

B. Protection of Contact/Biographical Information of Bargaining Unit Employees The City shall immediately notify the Union of any third party requests for contact and/or biographical information about the bargaining unit employees. The City shall promptly provide the Union a copy of the request and any material submitted with the request.

The City shall provide the Union at least seven (7) days to review the request and challenge the scope of the request prior to the City responding to the request. The City agrees to consider the Union’s response prior to disclosing to a third party any contact and/or biographical information about the bargaining unit employees. The City and Union share a mutual interest in protecting the privacy of its bargaining unit employees.

7.08 AREA MEETINGS
The City shall provide employees two (2) hours of release time plus additional reasonable release for travel time per area Union general membership meeting. The purpose of area meetings shall be to nominate and elect shop stewards and to provide a forum for Union communications. There shall be a maximum of six (6) area meetings annually. Union representatives shall have access to City facilities during work hours to conduct such area meetings with employees. The Union shall notify the Human Resources Director at least ten (10) workdays in advance of the date, time, and location of each area meeting. No more than two (2) Union officials shall be provided release time to conduct these meetings. In addition, during successor MOU negotiations, the City will allow no more than eight (8) bargaining team members to attend Area Meetings.

7.09 C.O.P.E. DEDUCTION
The City agrees to the establishment of a payroll deduction program for voluntary employee contributions to the Committee on Political Education, (C.O.P.E.) subject to the following conditions:

A. Voluntary deductions for C.O.P.E. shall be withheld only if the employee so authorizes in writing on a form provided by the Union and approved by the City.

B. Payroll deductions shall commence on the second pay period after the authorization is received by the City.

C. Employees may sign up, change the amount of their contributions or discontinue their contributions at any time in the manner consistent with Section 7.01.

D. The Union shall indemnify, defend and hold the City, its officers and employees

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harmless against any and all claims, demands, suits and from liabilities of any nature which may arise out of or by reason of any action taken or not taken by the City under the provisions of this section in the manner consistent with Section 7.01 G.

7.10 NEW EMPLOYEE ORIENTATION
A. The City agrees that each newly hired bargaining unit employee shall participate in a scheduled new employee orientation that includes a half-hour (30 minute) Union informational in-person meeting within the first thirty (30) days from the date of hire during regular working hours and onsite without the loss of compensation. The City shall notify the Union no less than ten (10) days of a scheduled new employee orientation.

B. The Union agrees that it shall pre-designate up to five (5) Union designee(s) mutually agreed upon by the City and the Union no more than two of which will attend each orientation, session, or meeting, provided that there is no disruption of work in each designated Union employee’s division due to these employees’ attendance. The Union agrees that it shall provide the names of the Union’s pre-designated designee(s) to the City’s Human Resources Director in writing, at least five (5) calendar days prior to the scheduled attendance at the orientation meetings, sessions, or trainings, Union designee(s) who are included in the written notice of attendance by the Union submitted to the Human Resources Director, at least five (5) calendar days in advance, shall be given release time to conduct such orientation sessions, meetings, or trainings under this Section. For purpose of this subsection, Union designee(s) may include, but not limited to, Union representatives, officers, stewards and members.

C. City representatives shall be absent from the room during any sessions, meetings or trainings conducted by the Union with newly hired employees. The City shall not discourage an employee’s participation in the Union portion of the onboarding process.

7.11 WEINGARTEN RIGHTS
All employees have the right to request a union representative to be present and to be represented in an investigatory interview with the employer when they reasonably believe that the interview may lead to disciplinary action.

7.12 LABOR MANAGEMENT MEETING
SEIU City-wide Labor Management Meetings
The City and the Union agree to meet monthly to pre-emptively address workplace and safety issues, including but not limited to issues affecting library headquarters and library branches. The parties agree that the intention of the labor management meetings is to further harmonious labor relations and resolve issues collaboratively and is not intended to serve in lieu of the formal grievance procedures. The Union shall appoint six (6) employees to serve on this committee without loss of compensation.

SECTION 8.00 - PERSONNEL ACTIONS (REGULAR AND TEMPORARY)

8.01 PERSONNEL FILES (REGULAR EMPLOYEES)
There shall be only one official personnel file which shall be maintained in the City’s Human

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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 cause to be placed in their personnel files responses to adverse material inserted therein.

A. Supervisor or Manager Notes During Evaluation Period There shall be only one official personnel file which shall be maintained bv the Human Resources Department. Unofficial personnel files maintained by supervisors or managers shall only be kept during the evaluation period and are managed as follows:

1. Any supervisory notes, records, or files maintained during an employee’s evaluation period may be incorporated into the employee’s written annual performance evaluation and must be destroyed after the completion of the written evaluation or after late evaluation as per Section 8.01.02.

B. Written Reprimands in the Personnel File

1. Any reprimand or accident related document that has been sealed or removed from an employee’s personnel file shall not be referenced or used in further evaluations or discipline of the employee.

2. Written reprimands that are sealed shall only be viewable by the employee, their representative, and Human Resources. Sealed reprimands shall not be used for hiring, promotions, or discipline.

3. Written reprimands more than two (2) years old from the date received shall not be considered for promotions, transfers, special assignments, or disciplinary actions unless it is used within the two (2) year period as a basis for a new disciplinary action.

4. Written reprimands more than two (2) years old from the date received and have not been used as a basis for a new disciplinary action within two (2) years shall be sealed in the employee’s personnel file.

5. All reprimands not used as the basis for a new disciplinary action during a two (2) year period shall be removed after three (3) years from the date received.

8.01.01 Performance Evaluations
It is compulsory that all regular employees receive an annual written performance evaluation from their supervisors. Employees serving a six-month probation will be evaluated at the completion of their third and sixth month of service. Employees serving a twelve-month probationary period will be evaluated at the completion of their third, sixth, ninth, and twelfth month of service. All regular employees will be evaluated on their merit review dates.

Evaluations are intended to be a summary of the employee’s performance over the course of the evaluation period. Evaluations are also to be used as a tool to motivate the employee to

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work at their highest capacity and to communicate and document the employee’s level of performance. To this end, the supervisor and the employee will meet and discuss work responsibilities, job standards and objectives, review progress and plan for the employee’s future development prior to the evaluation being placed in the employee’s personnel file.

Supervisors will make every attempt to address performance issues in a timely manner throughout the evaluation period and provide appropriate feedback to employees on an ongoing basis.

Any additions, corrections, deletions or changes on the original evaluation form, require initialing by both the maker of the amendment and the employee to indicate that the changes have been discussed and understood. No evaluation shall be made on hearsay statements.

Employees may also choose to appeal a performance evaluation to the department head and, if not satisfied, to the Human Resources Director and/or formally enter a response to the evaluation in their personnel file. Any unsatisfactory areas in an employee’s evaluation shall have attached reasons stated by the rater in the commentary section and shall include specific recommendations for improvement and provisions for assisting the employee in implementing any recommendations made. Disputes regarding performance reviews shall not be subject to the grievance process.

Evaluations will only contain information within the observable time period (i.e. annual evaluations will reflect only the full year between anniversary dates, three (3) month evaluations will reflect the months between date of hire to three months after, etc.)

8.01.02 Late Evaluations
Failure of the supervisor to present the employee with the evaluation within forty-five (45) calendar days of the due date, unless extension is mutually agreed upon in writing, shall result in a recommendation of step advancement in conjunction with Section 10.01.02. However, as soon as possible thereafter, the supervisor shall conduct a performance evaluation in accordance with Section 8.01.01. If a manager does not complete an employee’s evaluation within sixty (60) days from the due date, the employee’s evaluation shall be considered closed.

8.02 PROBATION (REGULAR EMPLOYEES)

8.02.01 Probationary Period
A. All original, promotional and re-hire appointments shall be subject to a probationary period of:
1) twelve months for Wastewater Collections Maintenance Trainees; and, 2) six months for all other unit employees.

B. Any time spent by an employee on unpaid status shall not be counted as qualifying service toward completion of the probationary period.

C. Probationary Credit: Employees hired into positions that require a one-year probation or six (6) months that previously served in the same temporary classification shall receive credit toward completion of the probationary period for actual hours worked in the same position on a temporary assignment prior to the regular appointment. Such credit shall be given for

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all hours worked up to a maximum of ten (10) months of credit for one-year probationary periods and five (5) months of credit for six (6) months probationary periods.

D. Employees working out of class in a higher classification will have the time worked count towards their probationary period in the higher position if promoted to the same classification within one year of working at the higher classification.

E. Temporary employees may apply to open positions within their department without meeting a minimum service requirement.
1) Classifications for probation credit:
i. All temporary classification that share a permanent counterpart classification.

8.02.02 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 employees performance.

8.02.03 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. The rejecting authority must supply an explanatory reason related to the employee’s substandard performance to both the Union and employee of their rejection in writing on the same day served.

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. Within the bargaining unit, lower positions where a promoted employee has an immediate right to return will not be deleted/unbudgeted before the promoted employee passes their probationary period.

8.02.04 Extension of Probation
A. All efforts shall be made to sufficiently evaluate the probationary employee during the assigned period. 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. The employee shall be informed in writing of the reasons for the period of the extension at least fourteen (14) calendar days prior to the scheduled end of the probationary period.