Agenda, regular meeting — Scotts Valley City Council, June 1, 2022 (part 1 of 2)

A G E N D A
Meeting of the
Scotts Valley City Council
Date: June 1, 2022
Time: 6:00 PM

CONTACT

INFORMATION

MEETING LOCATION POSTING
City of Scotts Valley
1 Civic Center Drive
Scotts Valley, CA 95066
(831) 440-5600
Zoom Video Conference
https://us02web.zoom.us/j/87110870169
See information below for how to
participate.

The agenda was posted
05-27-2022 at City Hall
and on the Internet at
www.scottsvalley.org.

PUBLIC ADVISORY REGARDING COVID-19 AND PUBLIC PARTICIPATION On September 16, 2021, Governor Newsom signed Assembly Bill 361 (“AB 361”), an urgency measure effective upon adoption, amending the Brown Act to allow legislative bodies to continue teleconferencing during a proclaimed State of Emergency, and either state or local officials have imposed or recommended measures to promote social distancing, or the legislative body determines that meeting in person would present imminent risks to the health or safety of attendees. In accordance with AB 361, the Scotts Valley City Council adopted Resolution 2007.9 On May 4, 2022, authorizing the continued use of teleconferenced meetings pursuant to AB 361. Elected Officials and City Staff Members will be participating remotely via videoconference.

Public Participation:

The meeting will be available on Zoom and broadcast through Community Television of Santa Cruz on Channel 25 and via their website at the following link: https://communitytv.org/watch/ (be sure to click on Channel 25). For those wishing to participate via Zoom you can join the following ways:
• Join from a PC, Mac, iPad, iPhone or Android device:
• Please click this URL to join. https://us02web.zoom.us/j/87110870169 • Or iPhone one-tap:
+16699009128,,87110870169#or13462487799,,87110870169#
• Or join by phone:

Dial (for higher quality, dial a number based on your current location):
+1 669 900 9128 or +1 346 248 7799 or +1 253 215 8782 or +1 301 715 8592 or +1 312 626 6799 or +1 646 558 8656
Webinar ID: 871 1087 0169
You will be given opportunities to provide public comment at the appropriate times throughout the meeting via Zoom. If you are participating via dial-up only, use *9 to raise your hand at the requested time.

City Council Meeting Agenda Page 2
Date: June 1, 2022
How to comment via Zoom:

1. At the appropriate times during the meeting for public comment, on items not on the agenda, and on specific agenda items, the Mayor will announce that public comment will be accepted. Our usual time limits of 3 minutes per individual, or 5 minutes for an individual who is representing a group of three or more, will apply. Please note that per our standard practice, this is not a question and answer time, but simply a time for you to provide your comments to the Council.

2. There is an option on Zoom to raise your hand. Please click on this option when the Mayor announces that public comment will be taken. Zoom places people in line automatically. If you are participating via dial-up, you can raise your hand at the appropriate time by pressing *9. When it is your turn, the City Clerk will unmute you, and you will be able to make your comments based on the above time frames. Once your time is up, you will once again be muted and the next person in line will be given their opportunity to speak.

How to comment via email:

1. Members of the public may provide public comment by sending comments to the City Clerk via email at [email protected].

2. Additional materials and emails must be received by 5:30 pm the day of the meeting and will be distributed to agenda recipients prior to the meeting.

3. Emails received after 5:30 pm the day of the meeting will not be included in the record.

ELECTED OFFICIALS CITY STAFF MEMBERS
Donna Lind, Mayor
Jim Reed, Vice Mayor
Jack Dilles, Council Member
Randy Johnson, Council Member
Derek Timm, Council Member
Mali LaGoe, City Manager
Casey Estorga, Administrative Services Director
Kirsten Powell, City Attorney
Steve Walpole, Chief of Police
Taylor Bateman, Community Development Director
Chris Lamm, Public Works Director
Cathie Simonovich, City Clerk

MEETING NOTICE AND AGENDA PACKET MATERIALS
Notice regarding City Council Meetings:

The City Council meets regularly on the 1st and 3rd Wednesday of each month at 6:00 pm.

Agenda and Agenda Packet Materials:

The City Council agenda and the complete agenda packet are available for review by 5:00 pm the Friday before the Wednesday meeting on the Internet at the City’s website:
http://scottsvalley.org/AgendaCenter. Due to COVID-19, City Hall is closed to the public therefore, the agenda is only available for viewing online.

Televised Meetings:

City Council meetings are cablecast “Live” on Community Television of Santa Cruz County on Comcast Channel 25 and are also available livestream on the Community TV website at the following link: https://communitytv.org/watch/
Zoom Meetings/Webinars:

For those wishing to participate via Zoom you can join from a PC, Mac, iPad, iPhone or Android device by entering or clicking on the following URL: https://us02web.zoom.us/j/87110870169 CALL TO ORDER 6:00 PM
City Council Meeting Agenda Page 3
Date: June 1, 2022

MOMENT OF SILENCE

ROLL CALL

SPECIAL SET MATTER(S)
Presentation of Mayor’s Proclamation recognizing June 15, 2022 as World Elder Abuse Awareness Day and recognizing the month of June as Elder Abuse Awareness Month.

COMMITTEE REPORTS
Council members are appointed to committees which are either City committees or committees dealing with other jurisdictions. This portion of the agenda allows the committee member to present oral or written reports to the Council regarding their committee assignments. It also allows the Council to make comments and give the committee member direction, as required.

CITY MANAGER REPORT

PUBLIC COMMENT TIME
This is the opportunity for individuals to make and/or submit written or oral comments to the Council on any items within the purview of the Council, which are NOT part of the Agenda.

No action on the item may be taken, but the Council may request the matter be placed on a future agenda.

ALTERATIONS TO CONSENT AGENDA
Council can remove or add items to the Consent Agenda.

CONSENT AGENDA
The Consent Agenda is comprised of items which appear to be non-controversial. Persons wishing to speak on any items may do so raising their hand to be recognized by the Mayor.

A. Approve City Council minutes of 05-18-2022
B. Approve check register dated 05-20-2022
C. Approve Resolution No. 2007.9 authorizing the continued use of teleconferenced meetings pursuant to Assembly Bill 361
D. Approve Resolution No.1851.9 temporarily closing a portion of Scotts Valley Drive for the City’s Independence Day Parade to be held on July 3, 2022 E. Approve fourth amendment to the Library Financing Authority (LFA) joint powers agreement
F. Approve Waste Disposal Agreement with Monterey Regional Waste Management District
City Council Meeting Agenda Page 4
Date: June 1, 2022
G. Approve on-call professional service agreements
H. Approve landscape service agreement with K&D Landscaping, Inc.

I. Update salary schedules for the Senior Planner, Senior Civil Engineer, and Associate Civil Engineer

ALTERATIONS TO REGULAR AGENDA
Council can remove or add items to the Regular Agenda.

REGULAR AGENDA
Persons wishing to speak on any item may do so by raising their hand to be recognized by the Mayor.

1. Presentation of Scotts Valley Police Department’s annual report (Chief Walpole)

2. Public meeting for Skypark Open Space Maintenance Assessment District No.1 (Public Works Director Lamm)

3. Public meeting for Pinewood Estates Landscape Maintenance Assessment District (Public Works Director Lamm)

4. Review of fiscal year 2022-23 proposed budget and long-range financial forecasts (Administrative Services Director Estorga)

5. Consideration and adoption of Flag Policy (City Manager LaGoe)

6. Future Council agenda items
(This portion of the Regular Agenda allows the Council to determine items to be placed on a future agenda and to choose a date, if so desired.)

ADJOURNMENT

ADA NOTICE
The City of Scotts Valley does not discriminate against persons with disabilities. The City Council Chambers is an accessible facility. If you wish to attend a City Council meeting and require assistance such as sign language, a translator, or other special assistance or devices in order to attend and participate at the meeting, please call the City Clerk's office at (831) 440- 5602 five to seven days in advance of the meeting to make arrangements for assistance. If you require the agenda of a City Council meeting be available in an alternative format consistent with a specific disability, please call the City Clerk’s Office. The California State Relay Service (TTY/VCO/HCO to Voice: English 1-800-735-2929, Spanish 1-800-855-3000; or, Voice to TTY/VCO/HCO: English 1-800-735-2922, Spanish 1-800-855-3000), provides Telecommunications Devices for the Deaf and Disabled and will provide a link between the TDD caller and users of telephone equipment.

City Council Meeting Agenda Page 5
Date: June 1, 2022

PROCEDURAL INFORMATION FOR THE PUBLIC

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
APPROVAL OF A RESOLUTION:

1. Move the Resolution number for approval.

2. Second the motion.

3. Vote by body, a roll call vote is not required.

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
INTRODUCTION/ADOPTION OF AN ORDINANCE:

1. Move the Ordinance number for introduction (or adoption).

2. Move the Ordinance be introduced by title only and waive the reading of the text.

3. Read the Ordinance title.

4. Second the motion.

5. Vote by body, a roll call vote is not required.

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
PUBLIC COMMENT/PUBLIC HEARINGS:

Unless otherwise determined by the presiding officer of the meeting:

1. Three minutes allowed per individual to speak.

2. Five minutes allowed per individual representing a group of three or more. ❖❖❖❖❖❖❖❖
The City of Scotts Valley does not discriminate against persons with disabilities. The City Council Chambers is an accessible facility. If you wish to attend a City Council meeting and require assistance such as sign language, a translator, or other special assistance or devices in order to attend and participate at the meeting, please call the City Clerk's office at (831) 440-5602 five to seven days in advance of the meeting to make arrangements for assistance. If you require the agenda of a City Council meeting be available in an alternative format consistent with a specific disability, please call the City Clerk’s Office. The California State Relay Service (TTY/VCO/HCO to Voice: English 1-800-735- 2929, Spanish 1-800-855-3000; Voice to TTY/VCO/HCO: English 1-800-735-2922, Spanish 1-800-855- 3000; or, from or to Speech-to-Speech, English & Spanish 1-800-854-7787), provides Telecommunications Devices for the Deaf and Disabled and will provide a link between the TDD caller and users of telephone equipment.
(!Cttp of $COtt5' l'allep
ftlapor' s t)roclamation
WHEREAS, the City of Scotts Vaffe_y is home to over 3,400 residents age 60 or ofaer who enrich and stre119then our community 6y servi119 as [eru:fers, mentors, vofunteers and vita£ mem6ers of our community, and deserve to 6e treated with respect and d1:9nityi and

WHEREAS,

WHEREAS,
over 1,600 reports of a6use against our efaer§; are received every year 6y Santa Cruz County Aduf t Protective Services i and
it is estimated that one out of 10 Americans aged 60 and over Ft.ave experienced efaer a6use, and as few as one out of 24 efaer a6use cases are reportedi and as our popufation fives fo119er, we are presented with an opportunity to think a6out our coffective needs and futurei and
ageism and sociaC isoCation are major causes of efaer a6usei and recognizi119 that it is up to a[[ of us, to ensure that proper sociaf structures etist so �:17[e can retain community and societaf connection, reduci119 the [ike[ifiood of a6usei today there is a system of co[Ca6oration amo119 the Human Services Department - Aduft and Long-Term Care Services Division, the Santa Cruz County Sheriff's Department, the Scotts Vaf[e_y Po(ice Department, the District Attorney, Seniors Counci[ (Area Agency on Agi119), the Long-Term Care Om6ucisman Program, Pu6(ic Guardian Program, and many community services partners to prevent a6use, protect victims, and prosecute offenkrs who a6use our efaer§;i and
Santa Cruz County is a feacier in the State of Cafifomia in assisting our vufnera6fe efcier§; citizens through education, advocacy, and coffaboration on a6use issues.

N0\-\'1 THEREFORE, I, Donna Lind, Mayor of the City of Scotts Vaf[e_y, , cfo here6y recognize June 15, 2022, as WORLD ELDERABUSEAWARENESS DAY and cfo here6y procfaim the month of June to 6e ELDER ABUSE AWARENESS MONTH, and encourage a[[ citizens of the Ciiy of Scotts Vaf[e_y to join me in this o6servance.

A�
Donna Lincl; Mayor
Signed ancl sealed this 1st day of June, 2022

SPECIAL SET MATTER

M I N U T E S
Meeting of the
Scotts Valley City Council
Date: May 18, 2022
Time: 6:00 PM

CONTACT INFORMATION MEETING LOCATION POSTING
City of Scotts Valley
1 Civic Center Drive
Scotts Valley, CA 95066
(831) 440-5600
Zoom Video Conference The agenda was posted
at City Hall and on the Internet
at www.scottsvalley.org.

CALL TO ORDER 6:00 PM
The City Council meeting was called to order at 6:02 PM.

PLEDGE OF ALLEGIANCE and MOMENT OF SILENCE

ROLL CALL
ELECTED OFFICIALS PRESENT:

Donna Lind, Mayor
Jim Reed, Vice Mayor
Jack Dilles, Council Member
Randy Johnson, Council Member
Derek Timm, Council Member
CITY STAFF MEMBERS PRESENT:

Mali LaGoe, City Manager
Kirsten Powell, City Attorney
Steve Walpole, Chief of Police
Taylor Bateman, Community Development Director
Casey Estorga, Administrative Services Director
Chris Lamm, Public Works Director/City Engineer
Cathie Simonovich, City Clerk

SPECIAL SET MATTER(S)
Mayor Lind presented a Mayor’s Proclamation recognizing the week of May 15-21, 2022, as National Public Works Week.

COMMITTEE REPORTS
CM Dilles along will Vice Mayor Reed, attended a presentation of the housing element for both Scotts Valley and San Lorenzo Valley. CM Dilles presented the current and new regional housing needs allocation (RHNA) numbers. The new housing numbers will be a challenge and he has been talking to the Community Development Director regarding this issue.
001

AGENDA ITEM A
DATE: 06-01-2022
City Council Meeting Minutes Page 2
Date: May 18, 2022
CM Dilles attended a meeting of the Area Agency on Aging Advisory Council. The Meals on Wheels program, which has its office and commercial kitchen in Live Oak, has been issued a 6-month notice to vacate by the Live Oak School District. This will significantly impact the seniors throughout the County who receive these meals. Meals on Wheels is currently looking for a new location.

CM Timm attended the Association of Monterey Bay Area Governments (AMBAG) meeting where they discussed the water supply issues in Monterey County. They wrote a joint letter on behalf of the entire Board requesting that the water districts in Monterey County lift their cease-and-desist orders that are keeping Monterey from moving forward with meeting their RHNA (Regional Housing Needs Allocation) cycle numbers.

CM Timm attended the Town Center subcommittee meeting. They are still waiting on the cleanup costs and once they understand these costs, they will be able to move forward. They also discussed the process for selecting the right consultants for this project.

CM Johnson attended the Town Center subcommittee meeting and agreed with CM Timm’s synopsis of the meeting.

Mayor Lind attended the City Leaders’ Summit with City Manager LaGoe. They met with Senator Laird and discussed CalCities’ funding priorities including funds that are owed for the unfunded mandates, funding for housing and economic development and funding for organic waste recycling programs. The summit was a good opportunity to meet with legislators and other elected officials who are facing some of the same challenges.

Mayor Lind attended a Santa Cruz Metropolitan Transit District (Metro) meeting where they discussed finances, Key Performance Indicators (KPI), ridership challenges, unfunded pensions, and more.

Mayor Lind attended the Youth Action Network (YAN) popup event today. She thanked the city staff who attended this event, and she thanked City Manager LaGoe and Captain Dean for leading the tours of City Hall and the Police Department.

Mayor Lind commended the Scotts Valley Rotary for their student appreciation scholarship awards event. The student speeches were inspiring.

CITY MANAGER REPORT

1. CalCities Conference: City Manager LaGoe attended this conference with Mayor Lind, and it was a great opportunity to get to know CalCities, to hear about the support they offer, to attend educational sessions, and to spend time with legislators.
002
City Council Meeting Minutes Page 3
Date: May 18, 2022

2. Sergeant Swearing in Ceremony: Sergeant Chris Galli was sworn in yesterday in a nice outdoor ceremony that was well-attended.

3. Youth Action Network Popup Event: The City supported this event which was held today. The event included plenty of resources for students such as career opportunities and mental health resources. Attendees were able to play games, spend time with their peers, and enjoy snacks.

4. Independence Day Celebration: Please check the City’s website for the information relating to the Independence Day celebration to be held on July 3rd.

On the website you can find out more information about being a sponsor, and you can purchase tickets to the event which includes a fireworks show.

5. Encore Project: The Encore townhouse project on Scotts Valley Drive is starting so they are beginning to cut down some of the trees. Please feel free to reach out if you have any questions. Mayor Lind added that two trees will be planted for every one tree that is removed.

4. Scotts Valley High School Senior Banners: The banners celebrating the Class of 2022 students are scheduled to be hung this Friday. The City has partnered with the Parent Club at the high school to make this happen.

5. Next Council Meeting: The proposed budget presentation, a flag policy, and the annual police report from Chief Walpole will be coming to the next Council meeting on June 1, 2022.

PUBLIC COMMENT TIME
No one came forward.

ALTERATIONS TO CONSENT AGENDA
M/S: Dilles/Timm
To approve the Consent Agenda.

Carried 5/0 (AYES: Dilles, Johnson, Lind, Reed, Timm)

CONSENT AGENDA
A. Approve City Council minutes of 05-04-2022
B. Approve check registers dated 05-06-2022, 05-09-2022, and 05-13-2022 C. Second reading and adoption of Ordinance No. 200, Scotts Valley Police Department Lexipol Policy #706 – Military Equipment Use 003
City Council Meeting Minutes Page 4
Date: May 18, 2022
D. Approve agreement between the City of Capitola and the City of Scotts Valley for sharing of Chief Building Official services
E. Amend Agreement with OpenGov to add Enterprise Resource Planning (ERP) software
F. Approve purchase order with Peterson/CAT for an emergency generator G. Approve final map for the Encore condominium project at Final Map and Set Aside Agreement
H. Approve Caltrans Electric Maintenance Agreement
I. Approve Recreation Division Manager salary schedule

ALTERATIONS TO REGULAR AGENDA
M/S: Dilles/Timm
To approve the Regular Agenda.

Carried 5/0 (AYES: Dilles, Johnson, Lind, Reed, Timm)

REGULAR AGENDA

1. Consider Five-Year Capital Improvement Project and Capital Purchase Plan for FY 2022-23 to FY 2026-27
Administrative Services Director Estorga presented the staff report, obtained feedback from Council, and responded to questions from Council.

2. First Reading of Ordinance No.188.1 which amends the Scotts Valley Municipal Code Regulations regarding smoking and tobacco products Captain Rutherford presented the staff report and responded to questions from Council.

In addition to the letters that were included with the staff report, three letters of support and one letter of opposition were received and are included as part of the minutes. Public comments in support of the ordinance were received from Rachel Kippen, Co-Chair of the Santa Cruz Tobacco Education Coalition and a tobacco educator working in high schools throughout the County; Margo Sidener, CEO of Breathe California of the Bay Area, Golden Gate, and Central Coast; Andrea Solano, Project Director for the Tobacco Education and Prevention Program at the Santa Cruz County Health Services Agency.

M/S: Timm/Dilles
004
City Council Meeting Minutes Page 5
Date: May 18, 2022
To introduce and waive first reading of Ordinance 188.1, an ordinance of the City Council of the City of Scotts Valley amending chapter 5.22 of title 5 of the Scotts Valley Municipal code requiring tobacco retailer licenses and amending chapters

8.20 and 8.25 of the Scotts Valley Municipal Code to regulate the sale of tobacco products.

Carried 5/0 (AYES: Dilles, Johnson, Lind, Reed, Timm)

3. Future Council agenda items
CM Timm requested an agenda item regarding flying the Pride flag during the month of June be placed on the June 1, 2022, agenda.

CM Reed requested an agenda item to discuss the process for recommending future Council agenda items.

CA Powell announced the City Council will be meeting in closed session pursuant to Government Code Section 54956.9(b) to confer with legal counsel regarding potential litigation (1 case).

ADJOURNMENT
The meeting adjourned at 7:29 PM.

Approved: _____________________________
Donna Lind, Mayor
Attest: ___________________________
Cathie Simonovich, City Clerk
005
May 13, 2022
Scotts Valley City Council
One Civic Center Drive
Scotts Valley, CA 95066
Dear Mayor Lind, Vice Mayor Reed, and Council Members Dilles, Johnson, and Timm:

Gummy Bear, Cotton Candy, Pink Lemonade, and Strawberry Bubblegum -- the list of candy-flavored tobacco products goes on and on! Flavored tobacco is as deadly and addictive as regular tobacco, but tastes and smells like treats for children. Big Tobacco is out to hook the youth of the community in so many ways, and flavored tobacco is currently one of those ways. Candy-like, fruity flavors, including the minty flavors of menthol, mask the harshness of tobacco, making it easier for youth to start smoking and start a lifetime of addiction.

Please put an end to the sale of flavored tobacco products in Scotts Valley.

California has been facing a crisis of teen tobacco use. As a member of the Santa Cruz County Tobacco Education Coalition, I hope we as adults can help prevent a new generation of youth from being hooked on tobacco. The use of tobacco and nicotine products has skyrocketed in recent years, including little cigars, cigarillos, chewing tobacco, and electronic cigarettes or vapes.

Four out of every five current teen smokers started with a flavored tobacco product -- kids come for the flavors but get trapped by the nicotine, which harms the developing brain and primes children for a lifetime of addiction to nicotine as well as other substances.

I encourage the City of Scotts Valley to continue to protect youth health and wellbeing, by stopping the sale of flavored tobacco products.

Sincerely,
Randy Uang
Member, Santa Cruz County Tobacco Education Coalition

Chairpersons
Rachel Kippen
Monica Nicholas

American Cancer Society
American Heart Association
American Lung Association
Assembly Member Mark Stone
Cabrillo College
Capitola Police Department
Central California Alliance for Health
Community Prevention Partners
Downtown Streets Team
Friday Night Live
Pajaro Valley Health Trust
Pajaro Valley Prevention
and Student Assistance, Inc.

Salud Para La Gente
Salud y Cariño
Santa Cruz City Police Department
Santa Cruz County
Health Services Agency
Santa Cruz County Office of Education
Santa Cruz County
Sheriff’s Office
Save Our Shores
United Way of Santa Cruz County
UCSC Student Health Outreach
Watsonville Public Works Department
006

County of Santa Cruz

HEALTH SERVICES AGENCY
POST OFFICE BOX 962, 1400 EMELINE AVENUE SANTA CRUZ, CA 95061-0962 (831) 359-8450 TDD: (831) 454-4748
May 17, 2022
Dear Mayor Lind and Scotts Valley City Council members:

On behalf of Santa Cruz County Friday Night Live Youth Council (FNL Youth Council) I would like to encourage the City of Scotts Valley to review the evidence that shows the benefits to both youth and the community by regulating the sale of flavored tobacco products in the City of Scotts Valley. Friday Night Live builds partnerships for positive and healthy youth development which engage youth as active leaders and resources in their communities. Friday Night Live is a program that has a long history of youth and adults working together to help youth make healthy decisions, feel supported and prepared for leadership, and to help our community by preventing alcohol, drug, and tobacco use. Friday Night Live members are from middle schools and high schools across the county.

This year the FNL Youth Council has taken a specific interest in tobacco health and have dedicated our time to understanding the public health impacts and the value of quality policy to protect the health and wellbeing of youth. The policy you are considering has been an effective mechanism in reducing youth access to flavored products. Tobacco products such as e-cigarettes are strategically marketed to youth with kid-friendly flavors like cotton candy, gummy bears, watermelon, Kool-aid, and Doritos. Studies show that most of the youth who use, start vaping start with a flavored product. Not only do these flavors clearly target youth, but the colorful, candy wrapper-like packaging appeal to youth as well. These products are easily available and are often priced lower than regular tobacco products. These are "starter'' products for the tobacco industry that establish smoking habits in youth and can lead to a lifetime of addiction and illness. 80% of youth who have ever used tobacco started with a flavored product! In the past few years, we have seen a drop in cigarette/traditional tobacco use by youth. But, youth vaping utilizing e-cigarettes and vaping devices to ingest flavored tobacco products is an everyday occurrence. Flavored products are easier to get and easier to use than traditional products. In our own schools we have even seen students vaping in class, in the halls, and in bathrooms. Often, we hear people say that "it's just flavor; there's nothing bad in it" or that "it isn't smoking", but we know that this isn't true. Flavored tobacco products are just as dangerous, if not more DocuSign Envelope ID: 67C5DB5D-C590-489F-978B-6BDC1DE6809E 007
dangerous, because the flavors appeal to youth and cover up what is really being inhaled.

To help keep youth in our communities healthy and to prevent a huge spike in tobacco use and related diseases (like heart disease, cancer, stroke, and asthma} in our generation, we encourage you to use the data to make an informed decision to regulate the sale and availability of flavored tobacco products in Scotts Valley. It's a step that several communities across the state and our county have already taken. It's also a step that would help develop what we as youth want in our communitywellbeing, rather than a lifetime of addiction and issues for our friends, classmates, and families.

This City Council has shown its commitment to creating a community where young people can thrive. We ask you to continue prioritizing and protecting youth in our community as you decide on this important health issue.

Thank you for your leadership!
Issa Bunch Chase Jacques-Maynes
Friday Night Live Youth Council Representative Friday Night Live Youth Council Representative DocuSign Envelope ID: 67C5DB5D-C590-489F-978B-6BDC1DE6809E 008
[Type here]
Breathe California
of the Bay Area,
Golden Gate, and
Central Coast
1469 Park Avenue
San Jose, CA 95126
Phone: (408) 998-5865
Toll-Free: 1-877-3-BREATHE
Fax: (408) 998-0578
www.lungsrus.org
[email protected]
Tax ID#: 94-1156307

BOARD OF DIRECTORS
Chairperson
Amresh Prasad
Secretary
Sulochina Lulla, MD
Treasurer
Justin Henry
Directors
Roslyn Bienenstock, RRT,
MPH
Joann Blessing-Moore, MD
Robert Carr
Thomas M. Dailey, MD,
FCCP
Frank DeBiaso
Sogol Karkouti
Ray Mendoza
Rohan Shamapant
Richard Steadman
Chief Executive Officer
Margo Sidener, MS, CHES
Deputy Executive Director
Tanya Payyappilly, MD,
MPH
A member of the
Breathe America ™
Alliance
May 17, 2022
The Honorable Mayor Donna Lind, Vice Mayor Jim Reed,
and Council Members Jack Dilles, Randy Johnson, and Derek Timm City Council
1 Civic Center Drive
Scotts Valley, CA 95066
Sent by e-mail: [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; and cc. City Clerk [email protected]
RE: ORDINANCE NO. 188.1, CHAPTER 5.22, 8.20 AND 8.25
Dear Mayor, Vice Mayor, and Council Members:

Breathe California of the Bay Area, Golden Gate, and Central Coast applauds your consideration of an improved ordinance to ban sales of flavored tobacco. I am writing to urge the Council to adopt these proposed amendments regulating tobacco retailers to better protect Scotts Valley youth from the lure of flavored tobacco.

As your introduction to the proposed ordinance implies, vaping in youth is epidemic, rising in the last 2 years by 218% in middle schoolers and 135% in high schoolers; and 96% of kids who vape use flavors. Those staggering figures alone justify the immediate implementation of restriction in sales of flavored tobacco products. Every day that you delay, local teens are trying these dangerous products and getting hooked, some into a lifetime of addiction.

Breathe California, founded in San Jose in 1911, is dedicated to working to prevent initiation to tobacco use. This has become more and more difficult due to the availability of flavored tobacco and vaping products. They are the product of choice by teens who smoke, are very difficult for parents and school personnel to detect, and are readily available in areas where they are not regulated.

I have reviewed the proposed ordinance and commend you on your comprehensive regulations, including appropriate enforcement and fines.

However, the detailed definitions section led me to expect some items, such as tobacco retailer restrictions in youth-sensitive areas and pharmacies, that did not appear later in the actual ordinance language itself. Is it your intent to follow up with other waves of the amendments that will include these provisions? (Or was the posted ordinance version incomplete?)
Additional Recommendation: Please improve Section 8.20.040C of Chapter 8.20 of Title 8 of your municipal code (Section 9 of the ordinance) to better protect Scotts Valley residents from the dangers of secondhand smoke. In reviewing the ordinance, I was surprised to see that most of the restrictions on smoking in public areas contain the possibility of “smoking permitted” or “designated sections.” Due to the drifting of 009
[Type here]
smoke outdoors, especially in small areas like outdoor dining, having areas where smoking is allowed nullifies the impact of the ordinance. Protections are further weakened due to the lack of description of when and where these smoking permitted sections may be established. Finally, any regulation under 100% nonsmoking will make such sections of the ordinance harder to enforce.

Since the US Surgeon General declared in 2006 that there was no safe level of secondhand smoke, which had already been declared a toxic contaminant and human carcinogen, governments have acted to ban smoking in more outdoor areas. This has generally been done with little involvement of enforcement personnel, relying instead on adequate signage, education, and reminders.

Children, seniors, and populations with health and social inequity are the most exposed to secondhand smoke, especially in multi-unit housing. Please strengthen your smoke-free laws to protect these groups that are already overburdened with health disparities.

Our agency is here for further comment or to assist the Council in its goal to protect public health, including to help you in implementing the proposed ordinance. Please reach out to me personally if we may be of assistance.

Healthfully,
Margo Sidener, MS, CHES
Chief Executive Officer
[email protected]

010
California Fuels and Convenience Alliance
2520 Venture Oaks Way, Suite 100
Sacramento, CA 95833
916.646.5999
Scotts Valley City Council
1 Civic Center Drive
Scotts Valley, CA 95066
Re: Agenda Item #2- Flavored Tobacco Ban
To: Mayor Donna Lind
Vice Mayor Jim Reed
Councilmember Jack Dilles
Councilmember Randy Johnson
Councilmember Derek Timm
The California Fuels and Convenience Alliance (CFCA) represents about 300 members, including nearly 90% of all the independent petroleum marketers in the state and more than one half of the state’s 12,000 convenience retailers. Our members are small, family- and minority-owned businesses that provide services to nearly every family in California.

Additionally, CFCA members fuel local governments, law enforcement, city and county fire departments, ambulances/emergency vehicles, school district bus fleets, construction firms, marinas, public and private transit companies, hospital emergency generators, trucking fleets, independent fuel retailers (small chains and mom-and-pop gas stations) and California agriculture, among many others. CFCA appreciates the opportunity to provide comment on this proposed ordinance.

The retailers represented by CFCA are mostly small, family, and/or immigrant owned businesses that would be heavily impacted by regulations on legally sold and manufactured tobacco products. They have been heavily involved in keeping age-restricted products out of the hands of youth, including the change to California’s age of sale from 18 to 21 years of age. Not only does our industry comply with federal and rapidly changing state and local laws, but they also conduct internal sting operations and build their own successful prevention policies, such as the WeCard Program. The ability to sell age-restricted products, including tobacco, is part of the financial stability of these community convenience stores.

The California Fuels and Convenience Alliance strongly opposes the proposed ordinance banning all flavored tobacco and e-cigarette products. FDA regulations approve of the lawful sale of menthol tobacco products by convenience stores to sell age-restricted products.

Identification Requirement and Online Sales
Convenience stores and other brick-and-mortar locations are perfectly situated to adhere to federal, state, and local laws by checking a physical identification card and following the guidelines created and followed by the industry, such as the WeCard program. WeCard is a non-profit organization that provides training and materials such as age-of-purchase calendars that make it simple for an employee to ensure the purchaser is of legal age. They also have an e-cigarette specific webpage and materials.1 WeCard ensures the correct materials and standards are being used in those locations and provides an invaluable service to small businesses that sell age-restricted products.

Although our members have continued to comply with these laws, little has been done to crack down on "fly by night" online storefronts and the increase in social sources. Social media has become a common link between these online stores and youth, either run by someone who will illegally ship products or other youths selling directly to classmates. Banning the sale of all tobacco products will shift sales from law-abiding retailers in a regulated environment to this illicit market. 1 http://www.wecard.org/e-cig-and-vapor-central
011
We encourage the City Council to consider mandating ID checks for all sales of age-restricted products, instead of banning an entire product category.

Economic Impact
Many proponents of tobacco control measures, claim that their proposals would not negatively affect tobacco retailer’s revenue. Not only do these groups have no data to support these claims, but available data from other cities that enacted similar proposals show losses in sales revenue, wages, and local tax revenue. For example, Proposition E in San Francisco led to an annual direct loss of $17.6 million in sales, $2.2 million in wages, and $2.06 million in local tax revenue. The proposition also resulted in the loss of approximately 81 jobs in the city from 2019-2020, a number that has likely grown due to the COVID-19 pandemic. If retailers are forced to stop selling hundreds of tobacco products, then customers will simply drive to another store in a neighboring city or purchase their preferred products on-line. The additional loss of sales would translate into lost jobs and likely store closures in Scotts Valley.

Conclusion
CFCA urges the Scotts Valley City Council to examine the methods by which youth are obtaining these age-restricted products, including cigarettes and vapes or ENDS. We encourage the City to work with the California Department of Public Health, the FDA, and others to do the necessary research in order to effectively limit youth access to tobacco while acknowledging the hard work by convenience stores and others to achieve the same goal. The fuels and convenience industry is willing to do its part to prevent youth access to age-restricted products, especially to find a manner to do it without the harm and negative impacts that ordinances such as this will bring onto small, family- and minority-owned businesses.

Please contact Ari Berlfein, CFCA’s Policy Analyst, by email or phone with any questions or comments, [email protected] and (916) 646-5999
012
Economic Impact of the Ban on Flavored Tobacco Products in San Francisco Prepared for the
California Fuels & Convenience Alliance
By
John Dunham & Associates
New York
January 9, 2020
013
1 Economic Impact of the Ban on Flavored Tobacco Products in San Francisco Executive Summary
Following the passage of Proposition E in June of 2018, all retailers selling tobacco products in San Francisco were required to remove flavored products, including flavored cigars, flavored vapor liquid (ecigarette liquid), and menthol cigarettes, from their shelves by the start of 2019. Now, with 2019 coming to a close, it is possible to measure the impact this regulation has had on the City of San Francisco, the greater Bay Area, and the State of California.

The impact of this regulation is of particular interest to the convenience store industry. Due to their already thin margins, convenience stores and gas stations are particularly harmed by this ban, as many rely on tobacco sales to maintain their profitability.1In addition, these stores are disproportionately harmed as many adult consumers who may make purchases in addition to tobacco, chose to do so outside of San Francisco, where they can purchase their preferred tobacco products.

Overall, the direct loss to San Francisco’s economy as a result of the ban is more than $17.6 million in sales, $2.2 million in wages, and $2.06 million in local tax revenue annually. Convenience stores have lost approximately 81 jobs in the city as a result of the ban.

Results
Following the passage of Proposition E in June of 2018, all tobacco retailers in San Francisco were required to remove flavored products, including flavored cigars, flavored vapor liquid (e-cigarette liquid), and menthol cigarettes, from their shelves by the start of 2019.

This ban has cost jobs in San Francisco’s retail community. Based on retail scan data, retailers in San Francisco have lost almost $17.7 million in tobacco sales. Some, though not all, of these sales simply shifted to retailers outside of San Francisco. For example, the change in sales for retailers in San Mateo County implies that over a quarter of menthol cigarette consumers and 10 percent of flavored cigar smokers purchased their products across the city limit, where flavored products remain legal in most incorporated communities.

Table 1
Sales, Employment, and Wages Impact of Flavored Tobacco Ban on San Francisco * While there would be an impact in terms of jobs and wages, the results of the model were not statistically significant 1 See for example: Gleeson Patrick and Jayne Thompson, What Is the Average Gross Revenue of a Convenience Store? Houston Cornicle, online updated on April 2, 2019, at: https://smallbusiness.chron.com/average-gross-revenue-convenience-store-35712.html Sales Jobs Wages
San Francisco -$17,695,000 (81) -$2,263,000
Convenience Stores -$5,654,000 (46) -$1,120,000
Gas Stations -$4,302,000 (35) -$1,143,000
Other -$7,739,000 * *
San Mateo County $3,541,000 * *
Convenience Stores $1,054,000 * *
Gas Stations $842,000 * *
Other $1,645,000 * *
Total -$14,154,000 (81) -$2,263,000
014
2 Lost sales generally mean lost jobs for retailers. Employment in retail is linearly related to sales volumes, so one should expect to see jobs move along with sales.2 This has been the case in San Francisco, where tobacco retailers have seen a loss of over 80 jobs and nearly $2.3 million in wages for workers.

Interestingly, the effects in nearby San Mateo county have been much smaller, and there is no statistically significant increase in job growth.

This suggests that shoppers in San Francisco not only purchased their flavored tobacco products outside of the city following the ban, but have also shifted other purchases outside of the city, forcing serious downsizing by retailers in the City by the Bay.

Table 2
Business Tax Impact of Flavored Tobacco Ban on San Francisco * While there would be an impact in terms of jobs and wages, the results of the model were not statistically significant Due to the loss of employment, the city collects less in income taxes and payroll expense tax.

Additionally, the loss of flavored tobacco sales has reduced the revenue collected from San Francisco’s gross receipts tax. Although this number seems small, it likely underestimates the loss of revenue by a significant margin, particularly if consumers shift other purchases away from San Francisco and its relatively high taxes.

A number of taxes are applied to tobacco products before they reach the customer, including at the state, federal, and county level. These taxes vary across products, including unit excise taxes, wholesale or retail value taxes, and sales taxes. In addition to the local sales tax applied throughout California, San Francisco levies an additional $0.85 tax per pack of cigarettes, called the cigarette litter abatement fee.

Table 3
Taxes Applied to Tobacco Products in San Francisco and San Mateo County Because the ban has eliminated the taxable purchase of flavored products in San Francisco, it has also eliminated any revenue collected from their sale. While some of the taxes collected by California are instead collected from purchases in surrounding areas, overall revenue for the State has declined, and taxes specific to San Francisco, such as the Litter Abatement Fee, have fallen dramatically. 2 DeFranco, Laurence J., William Lilley III and John R. Dunham, The Case of the Transient Taxpayer: How Tax-Driven Price Differentials for Commodity Goods Can Create Improbable Markets, Business Economics, July 1998.

Income Payroll Gross Reciepts Total
Convenience Stores -$16,800 -$4,300 -$7,600 -$28,700
Gas Stations -$17,100 -$4,300 -$5,800 -$27,200
Other * * -$10,400 -$10,400
Total -$33,900 -$8,600 -$23,800 -$66,300
Levy (Product, unit) Amount
Federal Excise Tax (Cigarettes, pack) $1.01
Federal Excise Tax (Snuff, oz) $0.094
Federal Excise Tax (Chewing, oz) $0.031
Federal Excise Tax (Cigars) 52.75% / $0.4026
California Excise Tax (Cigarettes, pack) $2.87
California (Other Tobacco Products) 59.27%
Cigarette Litter Abatement Fee (Cigarettes, pack) $0.85 California Sales Tax 6.00%
San Francisco County Sales Tax 2.50%
San Mateo County Sales Tax 3.25%
015
3 Table 4
Taxes Collected on Tobacco Products in San Francisco and Nearby Counties Overall, consumption tax revenue has fallen by over $2.0 million in San Francisco and about $6.3 million in California, while the offsetting rise in revenue collected by nearby counties is only $115,000.

Adding all of the taxes together brings the total cost to San Francisco’s government to $2.1 million annually.

Levy Name Change ($)
Federal Excise -$2,288,000
State Excise -$5,440,000
Cigarette Litter Abatement Fee -$1,559,000
State Sales Tax -$849,000
San Francisco Sales Tax -$442,000
Other Bay Area Sales Tax $115,000
Total Federal Tax -$2,288,000
Total State Tax -$6,289,000
Total San Francisco Tax -$2,001,000
Total Other Bay Area Tax $115,000
Total -$10,463,000
016
4 Methodology:

Two primary data sources were used in deducing the impact of San Francisco’s ban on flavored tobacco products, the first being the Quarterly Census of Employment and Wages, a publication produced by the Bureau of Labor Statistics tracking 95 percent of all jobs in the United States, and the second being proprietary scanner data tracking shipments of tobacco products to San Francisco and surrounding counties.3 For this analysis, measurements from both these sources date from January 2017, and capture monthly information concerning employment and sales respectively.

To compute the effect of the ban on employment, several relevant industries were selected, including convenience stores, gas stations, tobacco stores, and liquor stores, and then their monthly employment statistics in each Bay Area county were pulled from the QCEW database. 4 These numbers were then regressed against time, the respective industry employment numbers for the state of California, seasonal adjustment factors, and an added dummy variable corresponding to the start of the flavor ban. Ultimately, these models demonstrated a statistically significant impact (p < .001) on employment for both convenience stores and gas stations in San Francisco, although no statistically significant impacts were found in surrounding counties.

Table 5
Outputs for Regression on QCEW Data
To compute the effect of the ban on sales of tobacco products, scanner data for each tobacco product in each county was regressed against time, seasonal adjustment factors, and a dummy variable to measure the effect of the ban. Additionally, the information was further broken down and regressed to measure the effect on convenience stores, as the previous regressions conducted on employment data had indicated they were the most severely impacted industry.

While the employment model did not reveal a statistically significant impact on employment in counties outside of San Francisco, the regressions performed on scan data demonstrated a statistically significant impact on menthol cigarette sales (p < .05) and cigars (p < .01) in San Mateo County, demonstrating the shift in sales due to consumers circumventing the ban.
3 Proprietary data source capturing retail data for tobacco related products. 4 Quarterly Census of Employment and Wages, US Department of Labor, Bureau of Labor Statistics, at: https://www.bls.gov/cew/ Convenience Store Employees Gas Station Convenience Store Employees Variable Name Coefficient P-Value Significance Variable Name Coefficient P-Value Significance (Intercept) (96.52) 0.67 Not signficant (Intercept) 398.80 0.08 90% Date - 0.25 Not signficant Date - 0.29 Not signficant
CA Convenience Employees 0.01 0.00 99% CA Gas Employees 0.02 0.04 95% Flavor Ban (45.84) 0.00 99% Flavor Ban (34.88) 0.00 99% January 4.47 0.52 Not signficant January (8.74) 0.37 Not signficant February 2.81 0.65 Not signficant February (11.11) 0.22 Not signficant March (3.43) 0.54 Not signficant March (4.57) 0.60 Not signficant April (0.50) 0.94 Not signficant April (2.30) 0.79 Not signficant May 2.02 0.72 Not signficant May 4.21 0.63 Not signficant June (6.62) 0.20 Not signficant June (2.18) 0.81 Not signficant July (19.51) 0.00 99% July 4.54 0.69 Not signficant
August (20.66) 0.00 99% August 1.00 0.94 Not signficant September (10.49) 0.07 93% September (7.05) 0.54 Not signficant October 2.02 0.71 Not signficant October 7.41 0.45 Not signficant November (0.52) 0.92 Not signficant November (1.87) 0.84 Not signficant Model F Statistic: 35.02 R
2 : 0.9703 Model F Statistic: 10.59 R
2 : 0.9703
Model Significance: 99% Adj R2
: 0.9426 Model Significance: 99% Adj R2: 0.9426
017
5 Table 6
Outputs for Regression on Scan Data
Taxes were calculated by multiplying sales and employment data by tax rates made publicly available by the San Francisco Office of the Treasurer and Tax Collector.5 5 See: Taxes & Fees, Treasurer & Tax Collector, City and County of San Francisco, at: https://sftreasurer.org/business/taxes-fees San Francisco Menthol Cigarette Sales San Francisco Vape Sales Variable Name Coefficient P-Value Significance Variable Name Coefficient P-Value Significance (Intercept) 2,198,048.00 0.00 99% (Intercept) (1,070,640.00) 0.00 99% Date (113.94) 0.01 99% Date 63.36 0.01 99%
Seasonality 55,297.06 0.00 99% Seasonality 12,865.09 0.00 99% Flavor Ban (152,844.50) 0.00 99% Flavor Ban (15,086.72) 0.00 99% Model F Statistic: 61.87 R
2 : 0.8609 Model F Statistic: 17.47 R
2 : 0.6360
Model Significance: 99% Adj R2
: 0.8470 Model Significance: 99% Adj R2: 0.5996
San Francisco Smokeless Tobacco Sales San Francisco Cigar Sales Variable Name Coefficient P-Value Significance Variable Name Coefficient P-Value Significance (Intercept) 177,947.50 0.09 91% (Intercept) 1,163,394.00 0.39 Not signficant Date (7.82) 0.18 81% Date (36.69) 0.63 Not signficant
Seasonality 10,357.37 0.00 99% Seasonality 143,332.70 0.00 99% Flavor Ban (15,245.82) 0.00 99% Flavor Ban (165,908.00) 0.00 99% Model F Statistic: 31.9 R
2 : 0.7613 Model F Statistic: 20.59 R
2 : 0.6731
Model Significance: 99% Adj R2
: 0.7374 Model Significance: 99% Adj R2: 0.6404
San Mateo Menthol Cigarette Sales San Mateo Cigar Sales Variable Name Coefficient P-Value Significance Variable Name Coefficient P-Value Significance (Intercept) (66,488.58) 0.89 Not signficant (Intercept) (255,592.90) 0.16 84% Date 16.95 0.52 Not signficant Date 18.95 0.07 93%
Seasonality 78,072.47 - 100% Seasonality 21,222.35 0.00 99% Flavor Ban 38,191.08 0.03 96% Flavor Ban (16,536.15) 0.02 98% Model F Statistic: 25.68 R
2 : 0.7197 Model F Statistic: 12.73 R
2 : 0.5601
Model Significance: 99% Adj R2
: 0.6917 Model Significance: 99% Adj R2: 0.5161
018
Economic Impact of the Ban on Menthol Cigarettes in Los Angeles Prepared for the
California Fuels & Convenience Alliance
By
John Dunham & Associates
New York
June 24, 2020
019
1 Economic Impact of the Ban on Menthol Cigarettes in Los Angeles Executive Summary
The City of Los Angeles already has one of the worst retail environments for cigarettes and other tobacco products in the country. The per pack tax on cigarettes is already $5.30 (including MSA payments) which is about 44.9 percent of the current average estimated retail price of $11.80. 1 (Table 1) While not the
highest in the nation, cigarette taxes in California are 88 percent above the average, and the taxable sales per adult are just one-quarter of the nationwide average.2 While the unincorporated areas of Los Angeles County have banned the sale of menthol cigarettes, such a ban in the much more populous city of Los Angeles will have dramatic economic consequences, particularly as businesses try to recover from the devastation surrounding the government-imposed economic shutdown in response to the COVID-19 virus.

The impact of this regulation is of particular interest to the convenience store industry. Due to their already thin margins, convenience stores and gas stations are particularly harmed by this ban, as many rely on tobacco sales to maintain their profitability.3In addition, these stores are disproportionately harmed as many adult consumers who may make purchases in addition to tobacco, chose to do so outside of Los Angeles, where they can purchase their preferred tobacco products.

Overall, the direct loss to the economy of Los Angeles as a result of the ban would be almost $96.6 million in sales, and $4.6 million in local cigarette tax revenue annually. Convenience stores alone would lose approximately 254 jobs in the city as a result of the ban.

In addition to this, based on a model of tobacco demand, and the 2019 impact analysis of the menthol segment, over half (866) of the roughly 1,605 people in the city whose livelihoods depend on the production, distribution and sale of menthol cigarettes would see their jobs disappear, along with $50.8 million in local wages. The economic loss to Los Angeles would be over $137.4 million. (Table 3) One the tax losses from the reduced economic activity are accounted for, Los Angeles would experience a reduction of nearly $7.6 million in tax and fee revenues as a result of this proposed ban.

Results:

The County of Los Angeles recently banned the sale of menthol cigarettes in its unincorporated areas.

Since the ban only applied to sparsely populated rural parts of the county, the effects were not substantial.

However, were the city of Los Angeles to follow suit and ban menthol cigarettes, a product that has roughly 40 percent of the market share, the economic effects could be substantial.

Los Angeles already has one of the worst retail environments for cigarettes and other tobacco products in the country. The per pack tax on cigarettes is already $5.30 (including MSA payments) which is about 1 Based on data from the Economic Impact of Menthol Cigarettes: 2019, Prepared by John Dunham & Associates, for Reynolds American Inc.
2 Nationwide sales based on The Tax Burden on Tobacco Volume 54, Orzechowski and Walker, 2019. Adult population (21+) from the US Department of Commerce, Bureau of the Census, American Community Survey. 3 See for example: Gleeson Patrick and Jayne Thompson, What Is the Average Gross Revenue of a Convenience Store? Houston Cornicle, online updated on April 2, 2019, at: https://smallbusiness.chron.com/average-gross-revenue-convenience-store-35712.html Packs Adult Population (21+) Packs Per Adult
United States 11,111,479,311 240,352,655 46.23
Los Angeles 35,714,273 3,022,096 11.82
020
2 44.9 percent of the current average estimated retail price of $11.80.4 (Table 1) While not the highest in the nation, cigarette taxes in California are 88 percent above the average, and the taxable sales per adult are just one-quarter of the nationwide average.5
Table 1
Cigarette Taxes and Fees in Los Angeles
Were Los Angeles to ban the sale of menthol cigarettes, not only would local retailers and distributors be hurt, it would further exasperate the problem of smuggled cigarettes and cross border sales. In addition, Los Angeles would lose upwards of $4.6 million in cigarette tax revenues. Table 2 below shows the estimated tax revenue change for Los Angeles were the ban to go into effect.

Table 2
Sales and Excise Tax Impact of A Menthol Cigarette Ban in Los Angeles The economic impact would be far larger. Today, roughly 1,600 people in Los Angeles rely on the production, distribution and sale of menthol cigarettes for their livelihood.6 Were the ban to go into effect, about 866 of these people (or 54.0 percent) would see their jobs disappear, along with $50.8 million in local wages. The economic loss to Los Angeles would be over $137.4 million. (Table 3 on the following page.)
These lost jobs and wages will also lead to tax revenue reductions. When stores close, or people lose their jobs, they also reduce tax revenues that Los Angeles collects from property, income, and sales taxes, fees, and other sources. It is estimated that the economic losses in the city will result in $5.4 million in revenue reductions, of which 98.6 percent will come from reduced business taxes and fees. Table 4 outlines these losses by revenue type.
4 Based on data from the Economic Impact of Menthol Cigarettes: 2019, Prepared by John Dunham & Associates, for Reynolds American Inc.
5 Nationwide sales based on The Tax Burden on Tobacco Volume 54, Orzechowski and Walker, 2019. Adult population (21+) from the US Department of Commerce, Bureau of the Census, American Community Survey. 6 Based on data from The Menthol Industry Economic Impact Study, Prepared for Reynolds American, Inc., by John Dunham & Associates, May 1, 2019
Levy Amount Per Pack
Federal Excise Tax $1.01
CA Excise Tax $2.87
Total Tax $3.88
Master Settlement Agreement $1.42
Total $5.30
Before After Change
LA Sales Tax $9,481,355 $7,308,487 ($2,172,868)
LA MSA Allocation $10,615,000 $8,182,331 ($2,432,669)
Total Cigarette Tax $20,096,355 $15,490,818 ($4,605,537) Packs Adult Population (21+) Packs Per Adult
United States 11,111,479,311 240,352,655 46.23
Los Angeles 35,714,273 3,022,096 11.82
021
3 Table 3
Economic Impact of A Menthol Cigarette Ban in Los Angeles Overall, a ban on the sale of menthol cigarettes in Los Angeles, will result in a reduction of over $7.6 million in tax and fee revenues.7(Table 4)
Table 4
Business and Personal Tax Revenues Lost Due to A Menthol Cigarette Ban in Los Angeles The estimates in the model are robust. A similar ban was enacted in San Francisco in 2018 on all flavored tobacco products, including menthol cigarettes, flavored cigars, and vapor products. A year after this ban went into effect, tobacco sales in that city fell by 28.3 percent, an even higher loss than the 22.9 percent estimated reduction in this analysis.8
Table 5
Total Revenues Lost Due to A Menthol Cigarette Ban in Los Angeles The results from San Francisco showed a slight increase in unflavored cigarette sales following the ban of flavored tobacco, but only offsetting lost menthol sales by approximately 1.6 percent. Applying this to Los Angeles by adding together the 14.1 million lost sales of menthol cigarettes and the offsetting sales as some consumers switched to unflavored cigarettes, leads to a change in overall cigarette sales of $109 million. Using breaks established by the San Francisco study, the market was segmented into convenience 7 Based on Revenue Outlook: Supplement to the 2020-21 Proposed Budget, City of Los Angeles, Administrative Officer, April 2020, at: http://cao.lacity.org/budget20-21/2020-21Revenue_Outlook.pdf and 2020-21 Governor's Budget, Schedule 8, Comparative Statement Of Revenue at: http://www.ebudget.ca.gov/2020- 21/pdf/BudgetSummary/BS_SCH8.pdf
8 Economic Impact of the Ban on Flavored Tobacco Products in San Francisco, Prepared for the California Fuels & Convenience Alliance by John Dunham & Associates, New York, January 9, 2020 Jobs Wages Economic Output
Direct (518) $ (28,996,500) $ (71,434,222)
Manufacturing - $ - $ -
Wholesaling (156) $ (13,054,965) $ (39,140,489)
Retailing (363) $ (15,941,534) $ (32,293,733)
Supplier (139) $ (10,125,979) $ (31,861,746)
Induced (209) $ (11,676,755) $ (34,109,931)
Total (866) $ (50,799,233) $ (137,405,898)
Personal Business Total
Property Taxes $ 19,924 $ 5,156,335 $ 5,176,259
Income Taxes $ - $ 11,711 $ 11,711
Sales Taxes $ - $ 96,876 $ 96,876
Other Taxes $ 27,190 $ 80,744 $ 107,934
Fines/Fees/Licenses $ 30,849 $ 19,932 $ 50,781
Total $ 77,963 $ 5,365,597 $ 5,443,560
Revenue Type Revenue Loss
LA Cigarette Sales Tax $ (2,172,868)
Personal Taxes $ (77,963)
Business Taxes $ (5,365,597)
Total $ (7,616,428)
022
4 stores, gas stations with convenience stores, and other retail outlets. These results are shown in Table 6 on the following page.

The San Francisco study also demonstrated that a loss of a million dollars in retail sales translated to approximately 2.4 jobs lost in the convenience store sector and 1.8 jobs in the gas station sector, with no statistically observable impact on other retailers of tobacco products. The net impact on employment was calculated by multiplying those sales changes by those numbers, arriving at a total of 466 jobs lost in Los Angeles. This compares with the 363 lost retail jobs presented in Table 3.

Table 6
Estimated Impact of Menthol Cigarette Ban on Retail Sales, Jobs, and Wages Based on San Francisco
Methodology
This analysis is based on the Menthol Industry Economic Impact Study for 2019. This model incorporates a geographic distribution model that allocates all menthol cigarette production, distribution and retailing jobs across the country based on either individual facility geographic coordinates, or facility zip code.9 Overall, a total of 14,940 jobs in California depend on the sale of menthol cigarettes. Of these, 1,605, or

10.7 percent are located in Los Angeles.

This economic impact analysis was developed by JDA based on data provided by Reynolds American Inc. (RAI), Infogroup, The Tax Burden on Tobacco 2018, the Food and Drug Administration, Centers for Disease Control and Prevention (CDC), and Federal and state governments. The analysis utilizes the IMPLAN model in order to quantify the economic impact of the menthol cigarette industry on the economy of the United States, as well as individual states, congressional districts, and state legislative districts.10 The model adopts an accounting framework through which the relationships between different inputs and outputs across industries and sectors are computed. It is based on the national income accounts generated by the US Department of Commerce, Bureau of Economic Analysis (BEA).11 The menthol share of sales in California is 28.2 percent of total cigarette sales, based on data provided by RAI. LA’s share of menthol sales is 39.5 percent.

Every economic impact analysis begins with a description of the industry being examined. In the case of the menthol industry it is defined as the three components of the United States’ menthol cigarette industry. This will incorporate firms in the following economic sectors:
9 Based on data from The Menthol Industry Economic Impact Study, Prepared for Reynolds American, Inc., by John Dunham & Associates, May 1, 2019
10 The model uses 2016 input/output accounts.
11 The IMPLAN model is based on a series of national input-output accounts known as RIMS II. These data are developed and maintained by the U.S. Department of Commerce, Bureau of Economic Analysis as a policy and economic decision analysis tool.

Sales Jobs Wages
Los Angeles -$109,187,000 (466) -$11,993,000
Convenience Stores -$34,888,000 (265) -$6,353,000
Gas Stations -$26,545,000 (201) -$5,640,000
Other -$47,753,000 * *
023
5 ❖ Manufacturers: Menthol cigarette manufacturing plants, warehouses, offices. ❖ Wholesalers: Includes firms involved in the distribution and storage of menthol cigarettes. ❖ Retailers: Includes firms involved in the sale of menthol cigarettes. This sector includes retail establishments (e.g. grocery stores, convenience stores, gas stations, menthol stores, etc.) The IMPLAN model is designed to run based on the input of specific direct economic factors. It generates estimates of the other direct impacts, tax impacts and indirect and induced impacts based on these entries.

In the case of the menthol model, direct employment in the menthol cigarette industry is a starting point for the analysis. Direct employment is based on data provided to John Dunham & Associates by Infogroup, RAI, and the Food and Drug Administration as of January 2017. Infogroup data are recognized nationally as a premier source of micro industry data. Infogroup is the leading provider of business and consumer data for the top search engines and leading in-car navigation systems in North America.

Infogroup gathers data from a variety of sources, by sourcing, refining, matching, appending, filtering, and delivering the best quality data. Infogroup verifies its data at the rate of almost 100,000 phone calls per day to ensure absolute accuracy.

Once the initial direct employment figures have been established, they are entered into a model linked to the IMPLAN database. The IMPLAN data are used to generate estimates of direct wages and output.

Wages are derived from data from the U.S. Department of Labor’s ES-202 reports that are used by IMPLAN to provide annual average wage and salary establishment counts, employment counts and payrolls at the county level. Since this data only covers payroll employees, it is modified to add information on independent workers, agricultural employees, construction workers, and certain government employees. Data are then adjusted to account for counties where non-disclosure rules apply.

Wage data include not only cash wages, but health and life insurance payments, retirement payments and other non-cash compensation. It includes all income paid to workers and proprietors/partners by employers.

Total output is the value of production by industry in a given state. It is estimated by IMPLAN from sources similar to those used by the BEA in its RIMS II series. Where no Census or government surveys are available, IMPLAN uses models such as the Bureau of Labor Statistics’ growth model to estimate the missing output.

The model also includes information on income received by the Federal, state and local governments, and produces estimates for the following taxes at the Federal level: Corporate income, payroll, personal income, estate and gift, excise taxes, customs duties, and fines, fees, etc. State and local tax revenues include estimates of: Corporate profits, property, sales, severance, estate and gift and personal income taxes; licenses and fees and certain payroll taxes.

While IMPLAN is used to calculate the state level impacts, Infogroup data provide the basis for Los Angeles level estimates. Publicly available data at the county and local level is limited by disclosure restrictions, especially for smaller sectors of the economy. This model therefore uses actual physical location data provided by Infogroup in order to allocate jobs – and the resulting economic activity – by physical address or when that is not available, zip code. For zip codes contained in a single congressional district, jobs are allocated based on the total sector jobs in each zip. For zip codes that are broken by congressional districts, allocations are based on the percentage of total jobs physically located in each segment of the zip. Physical locations are based on either actual address of the facility, or the zip code of the facility, with facilities placed randomly throughout the zip code area.

Demand Model
024
6 Once the base economic impact of the menthol cigarette industry is developed, the effects of the proposed ban are calculated using a standard demand model. When Los Angeles bans the sale of menthol cigarettes, adults who prefer these products will react in one of four ways. They could:
1) Stop smoking cigarettes or switch to another tobacco product; 2) Switch from smoking menthol cigarettes to tobacco flavored cigarettes; 3) Continue to smoke menthol cigarettes but purchase them from other parts of California; 4) Continue to smoke menthol cigarettes but purchase them from other states and jurisdictions, or over the black market.

In the case of this analysis, two of these factors matter. Since no menthol cigarettes will be legally sold in Los Angeles, the fact that consumers are switching to the black market or purchase their tobacco products outside of the city does not impact either the revenue or economic impact projections. The bottom line is that 100 percent of the taxable menthol cigarette sales will disappear.

If adult smokers decide to continue to smoke menthol cigarettes and purchase them in California, there will be a small countervailing benefit to the rest of the state’s economy, which is calculated in this analysis.

Finally, adult smokers could switch to non-menthol cigarettes, and this would mitigate the lost sales in Los Angeles.

In order to calculate the effect of the ban on cigarette sales in Los Angeles, it is essential to know how consumers would react – both in terms of the percent of purchases outside of the city but in California, but also in terms of what percent would switch to other cigarette products. These percentages are called elasticities by economists. Cigarette elasticities have been studied in depth, but most academic research has focused on the effects of taxes on demand, or on the substitution effects of vapor products.

One comprehensive study on the menthol cigarette market was conducted by Compass Lexecon for Lorillard Tobacco Company in 2011.12 This study provides a series of estimates on all the different elasticities required for this model.

According to the Compass Lexecon analysis, the cross-elasticity of demand between menthol and nonmenthol cigarettes ranges from 0.28 to 0.42. This means that a 100 percent reduction in the sale of menthol cigarettes (as would happen under the proposed ban) would lead to an increase of non-menthol cigarettes equal to between 28 and 42 percent of the initial menthol product demand. For this analysis of the proposed ban the most conservative estimate – 0.42 – was used, meaning that the analysis assumes the least impact to the Los Angeles economy from the proposed ban.

In addition, the Compass Lexicon report provided a series of additional elasticities related to quitting and black-market sales. Since any non-reported sale of cigarettes to a consumer in Los Angeles from any other source would technically be a black-market sale under the methodology used in the analysis, then the difference between 1.0 and the sum of the switching, quitting would equal the and black-market elasticity. Some of these sales would go to California retailers. Currently, according to the Tax 12 Estimating Consequences of a Ban on the Legal Sale of Menthol Cigarettes, prepared by Compass Lexecon for Lorillard Tobacco Company, January 19, 2011. On-line at: https://www.thecre.com/ccsf/wpcontent/uploads/2011/03/compass_1_19_2011.pdf According to its website, Compass Lexecon is one of the world’s leading economic consulting firms.
025
7 Foundation, the black-market sales in California are already equal to 28.3 percent of the market.13 Taking the inverse of this (71.7 percent) would equal the legal sales. Assuming that the black-market rate stays constant, then the shift from Los Angeles to other parts of California sales would be 0.28 multiplied by

0.717, or 0.201. This means that 20 percent of lost menthol sales would transfer to other parts of California.

With these substitution percentages, the effect of the ban on both Los Angeles and California sales can be calculated. (See Table 7)
Table 7
State and City Impacts Resulting from A Menthol Cigarette Ban in Los Angeles As the table shows, 518 jobs directly related to the sale of menthol cigarettes will be lost in Los Angeles, offset by 179 jobs gained in other parts of California, and 57.1 percent of the overall economic loss to LA would be made up for by economic gains in the state economy. These effects are due to adult smokers purchasing their menthol cigarettes in California, outside of Los Angeles.

Cigarette Sales and Tax Revenues
Cigarette tax revenues are driven by both the volume of cigarettes sold in a particular jurisdiction as well as the price. Actual sales volumes in Los Angeles were provided by the California Fuels & Convenience Alliance.

The average retail price for a pack of cigarettes (less sales taxes) in Los Angeles is calculated to be $11.80. This price estimate is calculated based on the retail output (or gross margin) from the economic impact model. Dividing gross output by the retail margin of 0.2399 provides an estimate of the price of cigarettes prior to taxes.14 The final price of $11.80 per pack, is calculated by adding in Federal and state excise taxes, as well as the MSA payment.

Table 8
State and City Impacts Resulting from A Menthol Cigarette Ban in Los Angeles Based on the price of $11.80 per pack, a total of $421.4 million worth of menthol cigarettes are currently 13 Drenkard, Scott, Cigarette Taxes and Cigarette Smuggling by State, 2015, FISCAL FACT No. 565, The Tax Foundation, November 6, 2017. On-line at: https://files.taxfoundation.org/20171106130335/Tax-FoundationFF565.pdf 14 See: Margins After Redefinitions: 2007 Detail, Industry Economic Accounts Directorate, Bureau of Economic Analysis (BEA), U.S. Department of Commerce.

Direct Supplier Induced Total

LA CA LA CA LA CA LA CA
Jobs (518) 179 (139) 76 (209) 146 (866) 401
Wages $ (28,996,500) $ 9,531,079 $ (10,125,979) $ 6,197,553 $ (11,676,755) $ 9,237,233 $ (50,799,233) $ 24,965,865 Economic Output $ (71,434,222) $ 23,279,499 $ (31,861,746) $ 26,799,974 $ (34,109,931) $ 28,332,316 $ (137,405,898) $ 78,411,789 Existing After Ban
Total Packs 35,714,273 27,529,534
Total Value $ 421,393,564 $ 324,821,641
Menthol Packs 14,111,618 -
Menthol Value $ 166,503,316 $ -
Non-Menthol Packs 21,602,655 27,529,534
Non-Menthol Value $ 254,890,248 $ 324,821,641
026
8 sold on an annual basis in Los Angeles. With a city sales tax of 2.5 percent, this generates a total of nearly $9.5 million in sales tax revenues.

If the sale of menthol cigarettes were banned Los Angeles, the entire $421.4 million worth of sales would be lost. Based on the elasticities the lost menthol sales would be offset by gains in other cigarette sales of

5.9 million packs, or about $69.9 million. (Table 8)
San Francisco Methodology
Two primary data sources were used in deducing the impact of San Francisco’s ban on flavored tobacco products, the Quarterly Census of Employment and Wages, a publication produced by the Bureau of Labor Statistics tracking 95 percent of all jobs in the United States, and proprietary scanner data tracking shipments of tobacco products to San Francisco and surrounding counties.15 For this analysis, measurements from both these sources date from January 2017, and capture monthly information concerning employment and sales respectively.

To compute the effect of the ban on employment, several relevant industries were selected, including convenience stores, gas stations, tobacco stores, and liquor stores, and then their monthly employment statistics in each Bay Area county were pulled from the QCEW database. 16 These numbers were then regressed against time, the respective industry employment numbers for the state of California, seasonal adjustment factors, and an added dummy variable corresponding to the start of the flavor ban. Ultimately, these models demonstrated a statistically significant impact (p < .001) on employment for both convenience stores and gas stations in San Francisco, although no statistically significant impacts were found in surrounding counties.

Table 9
Outputs for Regression on QCEW Data
To compute the effect of the ban on sales of tobacco products, scanner data for each tobacco product in each county was regressed against time, seasonal adjustment factors, and a dummy variable to measure the effect of the ban. Additionally, the information was further broken down and regressed to measure the effect on convenience stores, as the previous regressions conducted on employment data had indicated they were the most severely impacted industry.
15 Proprietary data source capturing retail data for tobacco related products. 16 Quarterly Census of Employment and Wages, US Department of Labor, Bureau of Labor Statistics, at: https://www.bls.gov/cew/ Convenience Store Employees Gas Station Convenience Store Employees Variable Name Coefficient P-Value Significance Variable Name Coefficient P-Value Significance (Intercept) (96.52) 0.67 Not signficant (Intercept) 398.80 0.08 90% Date - 0.25 Not signficant Date - 0.29 Not signficant
CA Convenience Employees 0.01 0.00 99% CA Gas Employees 0.02 0.04 95% Flavor Ban (45.84) 0.00 99% Flavor Ban (34.88) 0.00 99% January 4.47 0.52 Not signficant January (8.74) 0.37 Not signficant February 2.81 0.65 Not signficant February (11.11) 0.22 Not signficant March (3.43) 0.54 Not signficant March (4.57) 0.60 Not signficant April (0.50) 0.94 Not signficant April (2.30) 0.79 Not signficant May 2.02 0.72 Not signficant May 4.21 0.63 Not signficant June (6.62) 0.20 Not signficant June (2.18) 0.81 Not signficant July (19.51) 0.00 99% July 4.54 0.69 Not signficant
August (20.66) 0.00 99% August 1.00 0.94 Not signficant September (10.49) 0.07 93% September (7.05) 0.54 Not signficant October 2.02 0.71 Not signficant October 7.41 0.45 Not signficant November (0.52) 0.92 Not signficant November (1.87) 0.84 Not signficant Model F Statistic: 35.02 R
2 : 0.9703 Model F Statistic: 10.59 R
2 : 0.9703
Model Significance: 99% Adj R2
: 0.9426 Model Significance: 99% Adj R2
: 0.9426
027

M I N U T E S
Special Closed Session Meeting of the
Scotts Valley City Council
Date: May 18, 2022
Time: 6:30 PM

CONTACT INFORMATION MEETING LOCATION POSTING
City of Scotts Valley
1 Civic Center Drive
Scotts Valley, CA 95066
(831) 440-5600
Zoom Video Conference The agenda was posted at City
Hall and on the Internet at
www.scottsvalley.org.

CALL TO ORDER
The City Council meeting was called to order at 7:35 PM.

ROLL CALL

CONVENE TO CLOSED SESSION

CLOSED SESSION SUBJECT(S)
The City Council convened to closed session at 7:35 PM to discuss the following item:
(1) Conference with legal counsel regarding potential litigation Legal Authority: Government Code Section 54956.9(b)
Number of Cases: 1 case
Staff Present: City Manager, City Attorney

RECONVENE TO OPEN SESSION
The City Council reconvened to open session at 7:42 PM. 028
City Council Meeting Agenda Page 2
Date: May 18, 2022

REPORT ON ACTION TAKE DURING CLOSED SESSION
Mayor Lind reported that the City Council voted unanimously to authorize the City Manager and the City Attorney to execute a release of claim in favor of the State in exchange for the payment of $106,645 for damage caused to the Skypark fields during the CZU fire.

ADJOURNMENT
The meeting adjourned at 7:42 PM.

Approved: _____________________________
Donna Lind, Mayor
Attest: ___________________________
Cathie Simonovich, City Clerk
029

SCOTTS VALLEY ACCOUNTS PAYABLE CITY OF SCOTTS VALLEY
05/20/2022 17:54:29 Check Register GL050S-V08.17 COVERPAGE GL540R
Report Selection:

RUN GROUP... 052022 COMMENT... 05/20/2022 A/P

DATA-JE-ID DATA COMMENT
-------------- ------------------------
W-05202022-900 05/20/2022 A/P
Run Instructions:

Jobq Banner Copies Form Printer Hold Space LPI Lines CPI CP SP RT L 01 Y S 6 066 10

AGENDA ITEM B
DATE: 06-01-2022
001

SCOTTS VALLEY ACCOUNTS PAYABLE

CITY OF SCOTTS VALLEY
05/20/2022 17:54:29 Check Register
GL540R-V08.17 PAGE 1
BANK VENDOR CHECK# DATE AMOUNT

BA GENERAL CHECKING ACCOUNT
000041 ACC BUSINESS 124071 05/20/22 584.67
003534 ADOBE ANIMAL HOSPITAL SO 124072 05/20/22 95.24
.15872 ALAMEDA COUNTY SHERIFF'S 124073 05/20/22 2,094.00 001219 ALHAMBRA 124074 05/20/22 197.30
003497 ALVAREZ INDUSTRIES, INC 124075 05/20/22 646.00
000097 AT&T 124076 05/20/22 33.97
004048 BADGE FRAME, INC. 124077 05/20/22 64.35
003899 BIGLER CONSTRUCTION 124078 05/20/22 7,395.94
000021 BOWMAN & WILLIAMS 124079 05/20/22 5,750.00
003936 BOYS & GIRLS CLUBS SC CO 124080 05/20/22 118,447.00 004063 CAPITOL BARRICADE, INC. 124081 05/20/22 570.33
000773 CENTRAL COAST LANDSCAPE 124082 05/20/22 383.00
002091 COMCAST 124083 05/20/22 323.25
000037 CRYSTAL SPRINGS WATER CO 124084 05/20/22 24.40
000037 CRYSTAL SPRINGS WATER CO 124085 05/20/22 29.25
004088 EARL ADAMS TILE-COPING & 124086 05/20/22 8,164.00 001881 GRAINGER 124087 05/20/22 75.67
004066 HEATHER A. HARDEE 124088 05/20/22 600.00
003944 HEBARD/TYLER 124089 05/20/22 304.00
003995 LIPARI/NICOLAS 124090 05/20/22 436.00
003913 LONG/AMANDA 124091 05/20/22 111.50
001234 MC GRAW DDS/BERNARD 124092 05/20/22 292.80
003171 MICHALAK/GENE 124093 05/20/22 125.00
000083 MISSION UNIFORM SERVICE 124094 05/20/22 2,745.06 001872 NORTH CENTRAL LABORATORI 124095 05/20/22 412.51
001615 OLIN CORP-CHLOR ALKALI 124096 05/20/22 2,557.16
000723 PIED PIPER INC./THE 124097 05/20/22 4,900.00
000134 S.V. WATER DISTRICT 124098 05/20/22 5,234.51
001894 S.V. WATER DISTRICT - BU 124099 05/20/22 199.80
000319 SCOTTS VALLEY CAR WASH 124100 05/20/22 384.65
000133 SCOTTS VALLEY SPRINKLER 124101 05/20/22 20.82
003958 STANDEN/BENJAMIN 124102 05/20/22 690.00
005004 STARK LEAK DETECTION, LL 124103 05/20/22 700.00
004026 STEELE-FREITAS/SETH 124104 05/20/22 114.85
002053 STEPFORD 124105 05/20/22 9,519.12
003757 SWEDBERG ELECTRIC INC. 124106 05/20/22 4,543.50
001085 SYCAL ENGINEERING INC 124107 05/20/22 165.00
004087 TIRECHOICE AUTO SERVICE 124108 05/20/22 2,747.15 003956 VERITONE, INC. 124109 05/20/22 1,200.00
001106 VERIZON WIRELESS 124110 05/20/22 74.24
003924 VIRTUAL PROJECT MANAGER 124111 05/20/22 1,000.00 .15873 WATSONVILLE DIESEL 124112 05/20/22 380.00
003576 WEBER,HAYES, & ASSOCIATE 124113 05/20/22 2,837.60 001402 WILLIAM'S TREE SERVICE, 124114 05/20/22 3,550.00 000154 WINCHESTER AUTO STORES 124115 05/20/22 20.25
003971 WIZIX TECHNOLOGY GROUP, 124116 05/20/22 389.89
GENERAL CHECKING ACCOUNT 191,133.78 ***
002

SCOTTS VALLEY ACCOUNTS PAYABLE

CITY OF SCOTTS VALLEY
05/20/2022 17:54:29 Check Register
GL540R-V08.17 PAGE 2
BANK VENDOR CHECK# DATE AMOUNT
REPORT TOTALS: 191,133.78
RECORDS PRINTED - 000066
003

SCOTTS VALLEY ACCOUNTS PAYABLE

CITY OF SCOTTS VALLEY
05/20/2022 17:54:29 Check Register
GL060S-V08.17 RECAPPAGE

GL540R
FUND RECAP:

FUND DESCRIPTION DISBURSEMENTS
---- ----------------------------
001 GENERAL 23,613.44
004 RECREATION 25,597.87
010 WASTEWATER OPERATIONS 19,713.99
011 TERTIARY TREATMENT PLANT 1,278.58
028 SENIOR CENTER 104.53
050 PINEWOOD EST LNDSCP MAINT DT 383.00
077 SKYPARK MAINT ASSESS DIST 1,542.36
112 DENTAL INS INTERNAL SERV 1,144.30
123 COMMUNITY FACILITY CENTER 608.17
150 GENERAL CAPITAL IMPROVEMENTS 24,147.54
317 EDG-REVOLVING LOAN FUND 93,000.00
TOTAL ALL FUNDS 191,133.78
BANK RECAP:

BANK NAME DISBURSEMENTS
---- ----------------------------
BA GENERAL CHECKING ACCOUNT 191,133.78
TOTAL ALL BANKS 191,133.78
004

AGENDA ITEM C
DATE: 06-01-2022

City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: June 1, 2022
TO: Honorable Mayor and City Council
FROM: Kirsten M. Powell, City Attorney
SUBJECT: CONTINUED VIRTUAL MEETINGS FOR CITY COUNCIL AND

APPOINTED BOARDS

SUMMARY OF ISSUE
On October 26, 2021, the City Council passed Resolution No. 2007 authorizing continued virtual meetings and extended those meetings on November 17, 2021, December 15, 2021, January 12, 2022, February 2, 2022, March 2, 2022, March 16, 2022, April 6, 2022 and May 4, 2022, by Resolution Nos. 2007.1, 2007.2, 2007.3, 2007.4, 2007.5, 2007.6, 2007.7 and 2007.8. Pursuant to AB 361, legislative bodies may use teleconferencing to conduct public meetings during a proclaimed State of Emergency, as defined under the California Emergency Services Act, if one of the following circumstances apply: (A) State or local officials have imposed or recommended measures to promote social distancing; (B) The legislative body is meeting to determine whether, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees; or (C) The legislative body has determined that, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.

At this point, the State of Emergency the Governor proclaimed on March 4, 2020 is still in effect today and the recommended measures to promote social distancing are still in place.

Recently with the removal of masks, there has been an uptick in cases. The CDC has recently upgraded the risk level of catching COVID 19 in Santa Cruz County to medium risk.

The City currently does not have the technological capabilities to hold hybrid meetings so anyone wanting to participate in the meetings would have to attend in person. As a result, holding public meetings of the City Council or other appointed bodies in person continues to present imminent risks to the health and safety of attendees.

FISCAL IMPACT
There is no fiscal impact associated with continuing virtual meetings.

STAFF RECOMMENDATION
Adopt Resolution No. 2007.9 confirming the need for virtual meetings pursuant to AB 361.

TABLE OF CONTENTS PAGE
Resolution No. 2007.9.....................................................................................................2 001

AGENDA ITEM C
DATE: 06-01-2022

RESOLUTION NO. 2007.9

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY

AUTHORIZING THE CONTINUED USE OF TELECONFERENCED MEETINGS PURSUANT TO ASSEMBLY BILL 361
WHEREAS, on March 4, 2020, Governor Newsom issued a Proclamation of State of Emergency, pursuant to the Emergency Services Act, in response to the COVID-19 pandemic; and
WHEREAS, on March 17, 2020, Governor Newsom issued Executive Order N-29-20, which suspended certain requirements of Government Code section 54950 et seq., the Ralph M.

Brown Act (“Brown Act”), in order to allow local legislative bodies to conduct meetings telephonically or electronically without a physical meeting place; and WHEREAS, on June 11, 2021, Governor Newsom issued Executive Order N-08-21, providing that the provision suspending the Brown Act requirements in Executive Order N-29-20 would remain in effect through September 30, 2021, at which point the suspension would expire; and
WHEREAS, on September 16, 2021, Governor Newsom signed Assembly Bill 361 (“AB 361”), an urgency measure effective upon adoption, amending the Brown Act to allow legislative bodies to continue teleconferencing during a proclaimed State of Emergency, and either state or local officials have imposed or recommended measures to promote social distancing, or the legislative body determines that meeting in person would present imminent risks to the health or safety of attendees;
WHEREAS, the State of Emergency proclaimed by the Governor on March 4, 2020, remains in effect; and
WHEREAS, state and local officials have imposed and/or recommended measures to promote social distancing; and
WHEREAS, people who are fully vaccinated are currently not required to wear masks indoors but those who are not fully vaccinated must continue to wear masks; and WHEREAS, although the Omicron variant appears to be waning, a new subvariant has been identified which is rapidly spreading and may be more contagious than the Omicron variant; and
WHEREAS, the CDC has recently upgraded the risk level of catching COVID 19 in Santa Cruz County to medium risk.

WHEREAS, on October 26, 2021, the City Council of the City of Scotts Valley passed Resolution No. 2007 to continue the use of virtual meetings and confirmed the need for virtual meetings on November 17, 2021, with passage of Resolution No. 2007.1, on December 15, 2021, with the passage of Resolution No. 2007.2, on January 12, 2022, with the passage of Resolution No. 2007.3, on February 2, 2022, with the passage of Resolution No. 2007.4, with the passage of Resolution No. 2007.5 on March 2, 2022, with the passage of Resolution No. 002

AGENDA ITEM C
DATE: 06-01-2022

2007.6 on March 16, 2022, with the passage of Resolution No. 2007.7 on April 6, 2022, and with the passage of Resolution No. 2007.8 on May 4, 2022 ; and WHEREAS, the City Council of the City of Scotts Valley hereby finds and determines that the above conditions continue to create an imminent risk to the health and safety of attendees should they be required to attend meetings in person in a shared indoor public meeting space; and
WHEREAS, the City Council wishes to authorize remote meetings as set forth in this Resolution.

NOW THEREFORE, be it resolved by the City Council of the City of Scotts Valley as follows:

A. The City hereby acknowledges the Governor of the State of California’s Proclamation of State of Emergency related to the COVID-19 pandemic remains in effect; and B. The City finds that due to the continued threat of COVID-19 transmission in the community holding in person meetings for the City Council and other appointed bodies of the City of Scotts Valley would present imminent risks to the health or safety of attendees.

C. The City Council and other appointed bodies of the City of Scotts Valley are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution including conducting open and public meetings in accordance with Government Code section 54953(e) and other applicable provisions of the Brown Act.

D. This Resolution shall take effect immediately upon its adoption and shall be effective until the earlier of (i) thirty days from the adoption of this Resolution, or (ii) such time the City Council adopts a subsequent resolution in accordance with Government Code section 54953(e)(3) to extend the time during which the City Council and the appointed bodies of the City of Scotts Valley may continue to teleconference without compliance with paragraph (3) of subdivision (b) of section 54953.

The above and foregoing Resolution was duly and regularly adopted by the City Council of the City of Scotts Valley at a regular meeting held on the 1 st day of June, 2022 by the following
vote:

AYES:

NOES
ABSENT:

ABSTAIN:

Approved: _____________________________
Donna Lind, Mayor
Attest: ______________________________
Cathie Simonovich, City Clerk
003

AGENDA ITEM D
DATE: 06-01-2022

City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: June 01, 2022
TO: Honorable Mayor and City Council
FROM: Steve Walpole, Chief of Police
APPROVED: Mali LaGoe, City Manager
SUBJECT: ROAD CLOSURE FOR CITY’S 3rd OF JULY PARADE

SUMMARY OF ISSUE
On July 3, 2022, the City of Scotts Valley will celebrate Independence Day by hosting a parade along Scotts Valley Drive. The proposed parade route will begin at Carbonero Way, travel northbound to El Pueblo Road, then circle back and return to Carbonero Way.

The roadway will be closed in both directions from 2:00pm to 5:00pm in order to maximize pedestrian/audience safety, with police officers, private security, and volunteers manning various driveways and barricaded sections along the parade route.

The parade will begin at 3:00pm and anticipated participants for the parade include antique/classic car enthusiasts, children's groups (such as 4H, cub scouts, etc.), dance groups, martial arts clubs, bicyclists, pets, emergency vehicles, service clubs, floats, and other local organizations.

Closure of the roadway will require the City Council to adopt a resolution in compliance with California Vehicle Code 21101(e). Appropriate notice letters will be distributed to affected businesses and residences, and the police department will further alert the public via the mobile radar trailer message board prior to the event. A press release will be issued for media coverage and sent to affected agencies (such as fire, ambulance, transit, sheriff, CHP, Metro).

FISCAL IMPACT
Additional overtime will be necessary for police staff to work this event. Approximately five police officers (in addition to the two already working patrol July 3rd) will be required to work this event from 1:00pm to 5:00pm The cost will be absorbed by the Police Department's overtime budget. Additional needed resources such as security and supplies to safely close the road will be expended from the budget approved by the City Council at its March 02, 2022 meeting. Donations for the parade are expected to defray a portion, if not all, of the parade costs.
001

AGENDA ITEM D
DATE: 06-01-2022

STAFF RECOMMENDATION
It is recommended that the City Council approve Resolution No. XXXX establishing a road closure along the above specified route of Scotts Valley Drive in order to host a parade in celebration of Independence Day on July 3, 2022.

TABLE OF CONTENTS PAGE
Resolution No. 1851.9..................................................................................................... 3 002
RESOLUTION NO. 1851.9

RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SCOTTS VALLEY TEMPORARILY CLOSING A PORTION OF
SCOTTS VALLEY DRIVE FOR THE CITY’S 3
rd OF JULY PARADE
WHEREAS, in celebration of Independence Day, the City has planned a parade to be held on July 3, 2022; and
WHEREAS, the parade route shall be along Scotts Valley Drive from Carbonero Way, travel northbound to El Pueblo Road, and then circle back and return to Carbonero Way; and
WHEREAS, participants in the parade and spectators will utilize all lanes of Scotts Valley Drive; and
WHEREAS, it is necessary to temporarily close Scotts Valley Drive from Carbonero Way to El Pueblo Road for the safety and protection of the participants and spectators of the parade.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Scotts Valley hereby orders the temporary closure of Scotts Valley Drive from Carbonero Way to El Pueblo Road from 2:00 p.m. until 5:00 p.m. on July 3, 2022. Such road closure shall be posted along the parade route by June 24, 2022.

The above and foregoing resolution was adopted at a duly held regular meeting of the City Council on the 1st of June, 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Approved: ____________________________
Donna Lind, Mayor
Attest: ___________________________
Cathie Simonovich, City Clerk
003

AGENDA ITEM E
DATE: 06-01-2022
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: June 1, 2022
TO: Honorable Mayor and City Council
FROM: Mali LaGoe, City Manager
SUBJECT: FOURTH AMENDMENT TO THE LIBRARY FINANCING

AUTHORITY JOINT POWERS AGREEMENT

SUMMARY OF ISSUE
Financing of public library services in the County is provided through the Santa Cruz County Library Financing Authority (LFA), a Joint Powers Authority formed in 1996 by the County of Santa Cruz and the cities of Santa Cruz, Watsonville, Scotts Valley and Capitola, established for the purpose of consolidating and providing for equitable financing of library services. LFA funding is currently provided through the proceeds of the voter-approved ¼-cent sales tax for libraries (Measure R) and from jurisdictional contributions (also referred to as Maintenance of Effort contributions) from the cities of Santa Cruz and Watsonville and the County Library Fund, which includes Capitola and Scotts Valley.

Under the original LFA agreement approved in June 1996, the cities of Santa Cruz and Watsonville contributed a fixed amount from their general funds, and the County Library Fund contributed an amount based on property taxes collected in the unincorporated area and cities of Capitola and Scotts Valley. When the LFA was established, the City of Santa Cruz contributed more than the County Library Fund based on population, and these amounts were intended to equalize. That occurred in approximately 15 years, and the County Library Fund's contribution continued to grow from property taxes. In December 2015, the jurisdictions amended the LFA agreement to establish a five-year term through June 30, 2021 and to adjust the contributions as follows:
• County Library Fund - The County Library Fund contributes a fixed amount of approximately $5 million annually beginning in FY 2016-17. The County Board of Supervisors allocates any excess property taxes in the Library Fund for exclusive use on library improvements or services at County Library Fund branches in consultation with the cities of Capitola and Scotts Valley and library staff. • City of Santa Cruz - The City of Santa Cruz contributes an amount that increases $70,000 annually beginning in FY 2016-17. The Santa Cruz City Council allocates an additional $30,000 annually for exclusive use on library improvements or services at City branches in consultation with library staff. 001

AGENDA ITEM E
DATE: 06-01-2022
• City of Watsonville - The City of Watsonville contributes a fixed amount and receives a fixed distribution, beginning a phased down approach to reach the targeted level of funding based on the population served. The remaining amount available from contributions is distributed to the Santa Cruz City/County Library System.

In June 2021, the jurisdictions further amended the LFA agreement to increase the contributions for the City of Santa Cruz and the County Library Fund in FY 2021-22.

This one-year extension allowed staff to consider the funding of major maintenance at branches and update the schedule for Watsonville target funding based on the population served and property tax growth.

The jurisdictions have reached a new agreement for a three-year extension with increased contributions in FY 2022-23 through FY 2024-25. This aligns with the current term of the Joint Powers Agreement relating to library services, which expires at the end of 2025.

The attached Fourth Amendment to the Joint Exercise of Powers Agreement Establishing the Santa Cruz County Library Financing Authority extends the term through June 30, 2025 and provides for the contributions and distributions detailed in Tables 1 and 2.

Table 1: Contributions of the Cities and County
Fiscal Year City of Santa
Cruz
City of
Watsonville
County Library
Fund
2022-23 $1,976,853 $541,684 $6,322,019
2023-24 $2,214,546 $541,684 $6,870,918
2024-25 $2,452,089 $541,684 $7,422,372
While the City of Watsonville’s contribution remains the same, the contributions of the City of Santa Cruz and County Library Fund will both increase in FY 2022-23 through FY 2024-25. The amounts have been determined based on a formula weighted equally by population and library square footage in each jurisdiction. The formula makes adjustments for systemwide use of the Downtown Branch as well as a rent offset for systemwide administrative staff housed at the Downtown Branch. Staff are working with the Santa Cruz City/County Library System to obtain better data on library usage so that these factors can be used as part of the future formula. Based on the current formula, the City of Santa Cruz’s contribution is expected to reach a targeted level of funding equal to the County Library Fund by FY 2025-26.

Table 2: Distributions to the Libraries
Fiscal Year Santa Cruz
City/County
Library System
Watsonville
Library
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AGENDA ITEM E
DATE: 06-01-2022
2022-23 $7,276,853 $1,563,703
2023-24 $8,114,546 $1,512,602
2024-25 $8,952,089 $1,464,056
The Santa Cruz City/County Library System's distribution will continue to increase in FY 2022-23 through FY 2024-2025, while the Watsonville Library's distribution will remain fixed in FY 2022-23 and then begin to decrease in FY 2023-24. The Watsonville Library’s distribution is expected to reach the targeted level of funding from the County Library Fund based on the population served by FY 2025-26, or 11 years earlier than anticipated due to adjustments to the population served and property tax growth.

FISCAL IMPACT
There is no fiscal impact to the City of Scotts Valley, as taxes from City residents are paid to the County Library Fund.

STAFF RECOMMENDATION
It is recommended that the City Council approve the Fourth Amendment to the Joint Powers Authority Agreement establishing the Santa Cruz County Library Financing Authority, and authorize the City Manager to sign the amendment.

TABLE OF CONTENTS PAGE
Fourth Amendment to the Joint Powers Agreement Establishing the Santa Cruz County Library Financing Authority.............................................................................................. 4 003
Library Financing JPA Fourth Amendment May 2022

FOURTH AMENDMENT TO THE JOINT EXERCISE OF POWERS

AGREEMENT ESTABLISHING THE SANTA CRUZ COUNTY LIBRARY

FINANCING AUTHORITY
WHEREAS, the Santa Cruz County Library Financing Authority (“the Financing Authority”) was created in 1996 for the purpose of financing library services and facilities; and WHEREAS, the Financing Authority was established pursuant to the Joint Exercise of Powers Law of the State of California, constituting Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (“the Act”); and WHEREAS, an original agreement entitled the “Joint Exercise of Powers Agreement Santa Cruz County Library Financing Authority” (“the Agreement”) was entered into by each of the parties in May 1996; and
WHEREAS, an agreement amending the original Agreement was entered into by each of the parties in November 2013; and
WHEREAS, a Second Amendment to the Agreement was entered into by each of the parties in December 2015; and
WHEREAS, a Third Amendment to the Agreement was entered into by each of the parties in June 2021; and
WHEREAS, a Fourth Amendment to the Agreement is necessary to increase the Maintenance of Effort contributions and extend the term three years; and WHEREAS, said Section 9.5 of said Second Amendment authorizes amendments at any time, or from time to time, only by the unanimous consent of the parties.

NOW THEREFORE, the Board of Supervisors of the County of Santa Cruz, and the City Councils for the Cities of Santa Cruz, Watsonville, Scotts Valley and Capitola agree to further amend the Third Amendment as follows:

1. Article III – Contributions is hereby amended as follows:

Section 3.1 – Maintenance of Effort Contributions of the Cities. Commencing with the 2022- 23 fiscal year, the City of Santa Cruz shall contribute a Maintenance of Effort (“MOE”) amount each year in the amounts shown below:
004
Library Financing JPA Fourth Amendment May 2022
City of Santa Cruz Maintenance of Effort
Fiscal Year Amount
2022-23 $1,976,853
2023-24 $2,214,546
2024-25 $2,452,089
Commencing with the 2022-23 fiscal year, the City of Watsonville shall contribute a MOE amount each year in the amounts shown below:

City of Watsonville Maintenance of Effort
Fiscal Year Amount
2022-23 $541,684
2023-24 $541,684
2024-25 $541,684
Section 3.2 – Maintenance of Effort Contributions of the County. Commencing with the 2022-23 fiscal year, and subject to the terms below, the County of Santa Cruz, on behalf of the Unincorporated Area and the cities of Capitola and Scotts Valley, shall contribute a MOE amount from the County Library Fund each year in the amounts shown below:

County Library Fund Maintenance of Effort
Fiscal Year Amount
2022-23 $6,322,019
2023-24 $6,870,918
2024-25 $7,422,372
If the Annual Net Amount of Allocated Taxes received by the County Library Fund is less than the annual MOE amount shown above, the County shall contribute the lesser amount as its annual MOE contribution. In no instance shall the County’s annual MOE contribution exceed the Annual Net Amount of Allocated Taxes received by the County Library Fund.

If the Annual Net Amount of Allocated Taxes received by the County Library Fund exceeds the annual MOE amount shown above, the County shall allocate any excess funds in the County Library Fund for exclusive use on library improvements, major maintenance, or services at County Library Fund branches (including Capitola and Scotts Valley branches) with input by library staff and the cities of Capitola and Scotts Valley. 005
Library Financing JPA Fourth Amendment May 2022

2. Article IV – Annual Budget/Disbursement of Funds is hereby amended as follows:

Section 4.3 – Disbursement of Funds. Commencing with the 2023-23 fiscal year, the amounts available from MOE contributions, taxes or fees, and carryover balances or surplus funds shall be disbursed as follows:
(A) The estimated amount available from MOE contributions shall be distributed to the Santa Cruz City/County Library System and the Watsonville Library each year in the amounts shown below:

Santa Cruz City/ County Library System
Fiscal Year Amount
2022-23 $7,276,853
2023-24 $8,114,546
2024-25 $8,952,089
Watsonville Library
Fiscal Year Amount
2022-23 $1,563,703
2023-24 $1,512,602
2024-25 $1,464,056
The Watsonville Library’s MOE distribution remains fixed at $1,563,703 in the 2022-23 fiscal year and then reduces so that the Watsonville Library’s share of the Annual Net Amount of Allocated Taxes received by the County Library Fund reaches the targeted level of funding based on the population served.

3. Article VI – Term and Withdrawal is hereby amended as follows:

Section 6.1 – Term. The changes outlined in this Fourth Amendment shall commence upon the execution by the parties hereto, and will continue to remain in effect through June 30, 2025.

All other provisions of said Agreement shall remain the same. 006
Library Financing JPA Fourth Amendment May 2022
IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to be executed and attested by their proper officers thereunto duly authorized on the day and year stated below the name of each of the parties. This Fourth Amendment may be signed in counterparts, each of which shall be deemed an original, and all of which shall constitute one and the same agreement.

COUNTY OF SANTA CRUZ Approved as to form:

By:

Dated:

CITY OF SANTA CRUZ Approved as to form:

By:

Dated:

CITY OF WATSONVILLE Approved as to form:

By:

Dated:

CITY OF CAPITOLA Approved as to form:

By:

Dated:

CITY OF SCOTTS VALLEY Approved as to form:

By:

Dated:
007

AGENDA ITEM F
DATE: 06-01-2022

City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: May 27, 2022
TO: Honorable Mayor and City Council
FROM: Kirsten Powell, City Attorney
SUBJECT: Waste Disposal Agreement with Monterey Regional Waste Management District

SUMMARY OF ISSUE
Monterey Regional Waste Management District (“District”) is a California Joint Powers Authority that owns and operates the Monterey Peninsula Landfill (the Landfill”). On December 18, 2009, the City and the District entered into “WASTE DISPOSAL AGREEMENT BY AND BETWEEN DISTRICT AND CITY,” (the “Agreement”) for a term of thirty years, which gave the City and its waste collection contractor the right to deliver waste generated and collected in the City to the Landfill for disposal. Due to certain legal considerations, the District terminated the Agreement with the intention of entering into a new agreement but has continued to receive the solid waste and organic materials collected in the City.

About the same time that the District terminated the agreement, the City was working on its implementation of SB 1383 which establishes regulatory requirements for jurisdictions, generators, haulers, solid waste facilities, and other entities to support achievement of State-wide Organic WasteDiversion (disposal reduction) targets. In order to address the concerns raised by the District when terminating the Agreement and to comply with SB 1383, the District and City staff have developed two agreements for the disposal of solid waste and organics at the Landfill.

Agreement To Continue Waste Disposal Services
As proposed, this agreement will enable the City and its solid waste hauler to deliver solid waste to the Landfill for a period of 30 years. Commencing on the first day of the eleventh year of this agreement (July 1, 2033), either party may terminate this Agreement for convenience by giving a 30-day's written notice to the other party. Upon 30-day’s written notice, the Agreement will terminate in 5 years. In addition, the Agreement can be terminated for cause by either party.
001

AGENDA ITEM F
DATE: 06-01-2022

The disposal rates under the contract are as follows:

Refuse Disposal Rates
Effective Date of new Rates Current 7/1/2023 7/1/2024 and thereafter
Posted MRWMD Refuse Rates
$65.00

TBD TBD
Contractual Refuse Rates
City of Scotts Valley $50.00 $55.00 95% of Posted
Refuse Rate
Although the City is not a member of the District, the rates charged under the agreement are the same rates the members of the District are paying. The rate charged is a component of the solid waste collection rates paid by the rate payers in the City. There is no charge to the City for this agreement.

Agreement For Organic Waste Diversion Services
Under this agreement, the City will have the right to deliver organic waste to the Landfill for an initial period of 5 years. During that time, the District will be preparing a master plan for its facilities which may affect capacity and services offered at the Landfill’s organic processing area. Upon the completion of the master planning process, the City and the District will renegotiate this agreement. The agreement may be terminated with 12 months’ notice by the District if the District is no longer able to process organics or by the City with 12 months’ notice if it chooses to no longer deliver organics to the Landfill.

City shall pay an initial rate for organics processing in the amount of $61.00/ton from July 1, 2022 to June 20, 2023. For the remainder of this Agreement, the rates shall be equal to the District’s Posted Rates for such materials and services, including Mixed Organic Waste, except where agreed to otherwise in writing by both parties. All changes to District’s Posted Rates are subject to approval by District’s Board of Directors, in the exercise of its sole discretion. The rate charged is a component of the solid waste collection rates paid by the rate payers in the City. There is no charge to the City for this agreement.

FISCAL IMPACT
Because the rates charged are a component of the solid waste collection rates paid by the rate payers in the City, there is no fiscal impact to the City by entering into these agreements.

STAFF RECOMMENDATION
Staff recommends that the City Council approve the Agreement To Continue Waste Disposal Services By And Between the Monterey Regional Waste Management District and the City Of Scotts Valley and the Agreement For Organic Waste Diversion Services By and Between the Monterey Regional Waste Management District and the City Of Scotts Valley. 002

AGENDA ITEM F
DATE: 06-01-2022

TABLE OF CONTENTS PAGE
Agreement To Continue Waste Disposal Services 4
By And Between the Monterey Regional Waste
Management District and the City Of Scotts Valley
Agreement For Organic Waste DiversionServices 28
By and Between the Monterey Regional Waste
Management District and the City Of Scotts Valley
003
1 AGREEMENT TO CONTINUE

WASTE DISPOSAL SERVICES BY AND BETWEEN

THE MONTEREY REGIONAL WASTE MANAGEMENT

DISTRICT AND THE CITY OF SCOTTS VALLEY
THIS AGREEMENT TO CONTINUE WASTE DISPOSAL SERVICES (hereinafter “Agreement”) is made and entered into on June ______, 2022 by and between the Monterey Regional Waste Management District, a public entity duly organized pursuant to the provisions of California Health and Safety Code sections 4170 et seq. (the "District"), and the City of Scotts Valley, a California general law city (the “City”) (collectively, the “Parties”), as follows:

RECITALS
A. On December 18, 2009, District and City entered into “WASTE DISPOSAL AGREEMENT BY AND BETWEEN DISTRICT AND CITY,” for a term of thirty years, to facilitate the delivery of waste generated and collected in the City to District’s Monterey Peninsula Landfill for disposal. Due to certain legal considerations, including without limitation changes to applicable laws, District has given notice to City of termination for convenience of the 2009 agreement, and the Parties are in accord that the 2009 agreement shall be superseded by this Agreement.

B. The Parties are also in accord that they continue to be satisfied with the performance of each of the parties hereto, with the benefits enjoyed by each of the parties under the terms of the 2009 agreement, and with the facts, principles, and descriptions set out in the Recitals of the 2009 agreement, and therefore those Recitals are incorporated here by reference as if set out in full herein.

C. District has determined that the execution by District of this Agreement will serve the public health, safety, and welfare of the District by continuing to provide a more stable, predictable and reliable supply of municipal solid waste to optimize the Monterey Peninsula Landfill, and that the resulting revenue will assist in the District’s rate stabilization efforts and waste diversion programs.
004
2 NOW, THEREFORE, in consideration of the foregoing and the mutual promises hereinafter set forth, District and City agree to the following Terms and Conditions:

TERMS AND CONDITIONS

1. DEFINITIONS
As used in this Agreement, the following terms shall have the meanings set forth below.

1.1 "Acceptable Waste" means all non-hazardous solid wastes such as garbage, refuse, rubbish, and other materials and substances discarded or rejected as being spent, useless, worthless, or in excess to the owners at the time of such discard or rejection and which is normally disposed of or collected from residential (single family or multi-family), commercial, industrial, governmental, and institutional establishments by haulers, and which is acceptable at Class III landfills under Applicable Law. "Acceptable Waste" also means solid waste that has been source separated and/or processed with reasonable due diligence to remove the following:
reusable and recyclable materials; Unacceptable Waste; Hazardous Substances or Hazardous Materials; Universal Waste (as defined by State law); and Hazardous Waste.

1.2 "Act" means the California Integrated Waste Management Act of 1989 (Division 30 of the California Public Resources Code), as amended, supplemented, superseded, and replaced from time to time.

1.3 "Applicable Law" means the Act, the Monterey County Code, CERCLA, RCRA, CEQA, any legal entitlement and any other rule, regulation, requirement, guideline, permit, action, determination, or order of any governmental body having jurisdiction, applicable from time to time, relating to the siting, design, permitting, acquisition, construction, equipping, financing, ownership, possession, management, operation, or maintenance of the Monterey Peninsula Landfill or the transfer, handling, transportation, and disposal of Acceptable Waste, Unacceptable Waste, or any other transaction or matter contemplated hereby (including any of the foregoing which concern health, safety, fire, environmental protection, labor relations, mitigation monitoring plans, building codes, non-discrimination and the payment of minimum wages).
005
3 1.4 "CEQA" means the California Environmental Quality Act (California Public Resources Code Section 21000 et seq.) as amended or superseded, and the regulations promulgated under the statute.

1.5 "CERCLA" means the Comprehensive Environmental Responsibility Compensation and Liability Act (42 U.S.C. Section 9601 et.seq.) as amended or superseded, and the regulations promulgated under the statute.

1.6 "Disposal Services" means the solid waste disposal services to be provided to the City by the District under this Waste Disposal Agreement.

1.7 "Hazardous Material" or "Hazardous Substance" has the meaning given such terms in CERCLA, the Carpenter-Presley-Tanner Hazardous Substance Account Act (California Health and Safety Code Section 25300 et seq.), and Titles 22 and 26 of the California Code of Regulations, as well as other regulations promulgated under these statutes, as they exist now and as they may be amended from time to time.

1.8 "Hazardous Waste" means (a) any waste which by reason of its quality, concentration, composition or physical, chemical, or infectious characteristic may do any of the following:
cause, or significantly contribute to, an increase in mortality or an increase in serious irreversible, or incapacitating reversible illness, or pose a substantial threat or potential hazard to human health or the environment when improperly treated, stored, transported or disposed of or otherwise mismanaged; or any waste which is defined or regulated as a hazardous waste, toxic substance, hazardous chemical substance or mixture, or asbestos under Applicable Law, as amended from time to time including, but not limited to: (1) the Resource Conservation and Recovery Act (RCRA) and the regulations contained in 40 CFR Parts 260-281; (2) the Toxic Substances Control Act (15 U.S.C. Sections 2601 et seq.) and the regulations contained in 40 CFR Parts 761-766; (3) the California Health and Safety Code, Section 25117, 25115, 25249.8, 25281 and 25316; (4) the California Public Resources Code, Section 40141; and (5) future additional or substitute Applicable Law pertaining to the indemnification, treatment, storage, or disposal of toxic substances or hazardous wastes; or (b) radioactive materials which are source, special nuclear, or by-product material as defined by the Atomic Energy Act of 1954 (42 U.S.C. Section 2011 et seq.) and the regulations contained in 10 CFR Part 40.

1.9 "Household Hazardous Waste Element" or "HHWE" means a solid waste planning document prepared by each city and unincorporated county pursuant Division 30, Section 41000 et seq. of the Act.
006
4 1.10 "Non-District Waste" also "Out-of- District Waste," means solid waste originating outside the jurisdictional boundaries of the District.

1.11 "RCRA" means the Resource Conservation and Recovery Act, 42 USC Section 6901 et seq., as amended and superseded.

1.12 "Self-Hauler" means any person not engaged commercially in waste cartage that collects and hauls to the Monterey Peninsula Landfill Acceptable Waste generated from residential or business activities.

1.13 "Source Reduction and Recycling Element" or “SRRE" means a solid waste planning document prepared by each city and unincorporated county pursuant to Division 30, Section 41000 et seq. of the Act.

1.14 "Transfer Trucks" means any large, multi-axle vehicle not exceeding 80,000 pounds gross vehicle weight.

1.15 "Unacceptable Waste" means Hazardous Waste; Hazardous Substances; Hazardous Materials; untreated medical waste; Household Hazardous Waste that has been separated from Acceptable Waste; explosives; bombs; ordnance, such as guns and ammunition; highly flammable substances; noxious materials; drums and closed containers; liquid waste, including liquid concrete; oil; human wastes and sewage sludge; machinery and equipment from commercial or industrial sources, such as hardened gears, shafts; motor vehicles or major components thereof; agricultural equipment; trailers; marine vessels and steel cable; hot loads, including hot asphalt, and hot liquid sulfur; loads of whole tires; friable asbestos; and any waste which the Monterey Peninsula Landfill is prohibited from receiving under Applicable Law.

1.16 "Uncontrollable Circumstances” means only the following acts, events or conditions, whether affecting the City, or the District, to the extent that it materially and adversely affects the ability of either party to perform any obligation under the Agreement, if such act, event or condition is beyond the reasonable control and is not also the result of the willful or negligent act, error or omission or failure to exercise reasonable diligence on the part of the party relying thereon as justification for not performing an obligation or complying with any condition required of such party under this Agreement:
007
5 1. an act of nature, hurricane, landslide, lightning, pandemic, earthquake, fire, explosion, flood, sabotage or similar occurrence, acts of a public enemy, extortion, war, blockade or insurrection, riot or civil disturbance;

2. a change in law affecting either party's ability to perform an obligation or complying with any condition required of such party under this Agreement;

3. pre-emption of materials or services by a Governmental Body in connection with a public emergency or any condemnation or other taking by eminent domain.

Provided, however, that the contesting in good faith or the failure in good faith to contest such action or inaction shall not be construed as willful or negligent action or a lack of reasonable diligence of either party.

2. TERM OF AGREEMENT

2.1 Term of Agreement
The term of this Agreement shall commence on the date first written above and shall continue for thirty years thereafter.

3. DELIVERY OF WASTE

3.1 Commitment to Deliver Waste
The City shall be permitted to annually deliver Acceptable Waste to the Monterey Peninsula Landfill during the term of this Agreement.

Waste shall generally be delivered by refuse collection or transfer vehicles of the City’s franchised waste hauler.

Waste shall be delivered to the Monterey Peninsula Landfill during the hours of 5:30 A.M. TO 4:00 P.M. Monday through Friday, and 8:00 A.M. to 4:00 P.M. on Saturdays, excepting certain holidays where closed or operating under shortened business hours, or as otherwise approved in writing by the District or as modified by a regulatory entity at the time of a permit renewal or issuance of a new permit.

The City shall deliver to the Monterey Peninsula Landfill one hundred percent of the Acceptable Waste generated from residential or business activities within the City and collected by the City’s franchised waste hauler or any subcontractor. The delivery to any other landfill of Acceptable Waste generated from residential or business activities within the City by the 008
6 City’s franchised waste hauler or any subcontractor is a default under the terms of this Agreement, in which event, the District shall be entitled to reasonably estimate the amount of Acceptable Waste that would have been delivered to the Monterey Peninsula Landfill and invoice the City for such amount in accordance with Section 4.2.

3.2 City's Authority to Deliver Waste
The City warrants that it has and shall maintain during the term of this Agreement the right, power, and authority to deliver the Acceptable Waste to the District through franchises, contracts, permits, licenses, or other arrangements.

4. PROVISION OF DISPOSAL SERVICES

4.1 Commitment to Provide Disposal Services
The District agrees to provide Disposal Services to the City for the term of the Agreement under the conditions specified in the Agreement. The District warrants that it can receive City’s Acceptable Waste at the designated Monterey Peninsula Landfill, under the facility permit for the term of this Agreement.

4.2 Fee for Disposal Services
For the first four years of this Agreement, City shall pay rates for refuse delivered to District according to Exhibit A, Refuse Rates, attached hereto and incorporated herein by this reference. Beginning in Year Five, and for the remainder of the term of this Agreement, City shall pay a rate equal to 95% of District’s Posted Rate for Acceptable Waste (also known as the “Member Agency Rate” or “Disposal Tip Fee Rate”) delivered to District for disposal. For the entirety of this Agreement, all other materials and services shall be paid at rates equal to the District’s Posted Rates for such materials and services. All changes to District’s Posted Rates are subject to approval by District’s Board of Directors, in the exercise of its sole discretion. For the purposes of this Agreement, the first year, or “Year 1”, shall begin on July 1, 2022 and end on June 30, 2023.

4.3 Payment for Disposal Services
The City is responsible for payment for Disposal Services and all other fees or charges under this Agreement. The District may, in its discretion, charge and accept payment from the City’s franchised waste hauler for Disposal Services but responsibility for payment of any charges not paid by the City’s franchised waste hauler remains the City’s responsibility. The 009
7 disposal fee may be paid in cash in advance for each load at the time of delivery, or the District may elect to establish a deferred billing account under a process mutually agreed upon.

4.4 Annual Disposal Fee Increase Adjustment for Provision of Disposal Services The rate specified in Section 4.2 shall be as specified in Exhibit A. All rate increases shall be effective on July 1 of each year. Rate increases shall be approved by the District’s Board of Directors.

4.5 Increase in Governmental Fees or District Costs Due to New Regulatory or Statutory Mandates
If any fees or charges are imposed or increased by law or regulation after the date first written above and levied on the District by any local, state, or federal government or a local enforcement agency, the District shall have the right, upon 30-days prior written notice to the City, to increase the then current fee charged to the City hereunder in an equitable manner relative to the services provided to the City under this Agreement. Any increased cost borne by the District due to new regulatory or statutory mandates beyond the District’s control shall be allocated based on the percentage of tons of waste delivered to the District by the City compared to all other tons delivered to the District and included in the disposal fee charged.

5. PROCEDURES FOR DELIVERY AND ACCEPTANCE OF WASTE

5.1 Procedures for Delivery and Acceptance of Out-of-District Waste City shall deliver Acceptable Waste to the Monterey Peninsula Landfill according to the conditions and procedures in Exhibit B. The General Manager of the District and the City’s designee may mutually agree to modify Exhibit B, provided such modifications are made in writing signed by both parties and subject to the terms and conditions of this Agreement.

The City through its franchised waste hauler shall bear all costs of collection, processing, transfer, transportation, taxes, permits, or impositions assessed by any governmental body related to the delivery of waste to the Monterey Peninsula Landfill. The District assumes all costs incurred as a result of the acceptance of the City’s Acceptable Waste.

5.2 Unacceptable Waste
The City shall act with reasonable due diligence to prevent the delivery of any waste to the Monterey Peninsula Landfill that is defined as Unacceptable Waste under this Agreement. 010
8 5.3 Out-of-City Waste
Only waste originating inside of the City (with the exception of up to 5% of out-of-City waste per Section 8.4) may be delivered to the Monterey Peninsula Landfill pursuant to this Agreement. City shall maintain records and supporting source documents that adequately identify the origin of all “Acceptable Waste” delivered by the City to the Monterey Peninsula Landfill pursuant to this Agreement. All records and source documentation shall be maintained by the City for a minimum of five years following the termination of this Agreement. Documents shall be maintained in a location mutually acceptable to District and City.

District shall, through its duly authorized agents or representatives, have the right to examine and audit records and supporting source documents maintained by City concerning the origin of waste delivered to the Monterey Peninsula Landfill at any and all reasonable times, upon thirty (30) days written notice, for purposes of determining the accuracy of those records and of the reports provided to District pursuant to this Agreement and of the accuracy of City payments to District pursuant to this Agreement. If any Audit of the City’s or its franchised hauler’s invoices or other records reveals any variance from any invoice for waste delivered to the District in excess of five percent (5%) of the amount shown on such invoice, or if the City has failed to maintain true and complete books, records and supporting source documents in accordance with this Section, City shall immediately reimburse District for all costs and expenses incurred in conducting such Audit.

5.4 Hazardous Materials, Substances or Waste
The City shall act with reasonable due diligence to prevent the delivery of Unacceptable Wastes, Hazardous Materials, Hazardous Substances, or Hazardous Waste to the Monterey Peninsula Landfill. The City program for detection and removal of Hazardous Materials, Hazardous Waste, Hazardous Substances or Unacceptable Waste from Acceptable Waste ("Hazardous Materials Removal Program") is set out in Exhibit C, incorporated herein by this reference as if fully set forth herein.

The City shall notify the General Manager of the District, in writing, at least 30-days prior to making any significant modifications in City’s Hazardous Materials Removal Program. The District may object to any such modification in writing within 15-days of receipt. The City shall give reasonable consideration to any District objections. The intentional delivery any quantity of Hazardous Waste shall constitute a material breach of this Agreement. 011
9 5.5 Emergency Re-Designation of Facility
The District shall have the right to suspend acceptance of Acceptable Waste to the Monterey Peninsula Landfill at any time for up to 45-days upon the occurrence of a natural disaster or other Uncontrollable Circumstances which affect the ability of the District to accept, under Applicable Law, City’s otherwise Acceptable Waste at the Monterey Peninsula Landfill.

The District will make every reasonable effort to provide advance notice; however, exigent circumstances may require re-designation of Acceptable Waste on a temporary basis without prior notice. No adjustments shall be made to the disposal fee of waste redirected due to emergency.

5.6 Mutual Aid
In the event of an emergency, the parties may provide mutual aid to one another through the sharing of resources.

5.7 Weights for Payment
Payment shall be based upon weight provided by the Districts’ regular vehicle weighing scale system.

6. REGULATORY COMPLIANCE

6.1 Applicable Law
Throughout the term of this Agreement the parties shall comply with Applicable Law; and shall obtain and maintain any permits, licenses, or approvals which are required for the performance of the party's respective obligations under this Agreement.

6.2 Compatibility with The Act
The actions of the City in entering into this Agreement shall be compatible with the goals, policies, and agreements of the Source Reduction and Recycling Element(s) (SRREs) of the jurisdiction(s) generating the waste which is accepted in the Monterey Peninsula Landfill.

6.3 Disposal Reporting
The City shall supply all information necessary to comply with the District’s Disposal Reporting System and any other information required by the District to comply with the Act, or any other Applicable Law.
012
10 6.4 Recordkeeping and Reporting
Upon City’s request, District shall provide any and all records and/or reports related specifically to the use of facilities relied upon by District for performance under this Agreement that have been provided to other governmental agencies, including but not necessarily limited to: County of Monterey, Regional Water Quality Board, Air Quality Management District, or CalRecycle, unless such records are the subject of litigation disclosure or confidentiality agreements, or where disclosure is limited or prohibited in accordance with State or local privacy laws.

6.5 Capacity Assurance
District warrants that as of the Commencement Date, it has sufficient capacity to dispose of all Acceptable Waste throughout the Term, and that it shall maintain that capacity throughout the Term and any extension.

7. TERMINATION, DEFAULT AND REMEDIES

7.1 Termination for Convenience
Commencing on the first day of the eleventh year of this agreement, either party may terminate this Agreement for convenience during the term hereof by giving a 30-day's written notice to the other party. Upon the expiration of the 30-day notice period, a five-year final term on the same terms and conditions set forth herein shall commence.

7.2 Termination for Cause
Either party may terminate this Agreement for cause for the reasons set forth below, without the commencement of a final 5-year term (as provided in paragraph 7.1). In the case of termination for cause, the terminating party shall not be liable to the non-terminating party for any damages incurred due to early termination, including, but not limited to, consequential damages.

A. Termination for Cause by District
The District may terminate for cause if:
i. The City delivers waste originating outside the City in excess of 5% (paragraph 5.3);
ii. The City intentionally delivers and attempts to deliver Unacceptable Waste; Hazardous Substances or Hazardous Materials or Universal Waste (as defined by State law) (paragraph 5.4); or
iii. The City fails to comply with a Household Hazardous Waste Program that complies with state law (paragraph 8.4).
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11 B. Termination for Cause by City
The City may terminate for cause if the District is unable to accept Acceptable Waste for more than 45-days and the parties are unable to reach a mutually acceptable resolution through modification of this Agreement (paragraph 5.5).

C. Termination for Cause by Either Party
Either party may terminate for cause if:
i. The District is ordered by court of competent jurisdiction to cease providing Disposal Services under the terms and conditions of this Agreement. In such event District will not be liable for actual or consequential damages due to the inability to provide Disposal Services.
ii The other party is determined to be in violation of Applicable Law, despite reasonable due diligence.

D. Opportunity for Cure
If either party fails to perform any of its obligations hereunder, that party shall have 30 business days from receipt of written notice of default from the other party within which to cure such default. However, the City’s intentional delivery of industrial or commercial Hazardous Waste (pursuant to paragraph 5.4) or failure to maintain a Household Hazardous Waste (HHW) Management Program that complies with state law (pursuant to paragraph 8.4) may be grounds for termination in the District’s discretion. Such default may be subject to termination pursuant to paragraph 7.2. In the case of a default involving HHW under paragraph 5.4 by City, City must cure the default within 24 hours of written notice of the default in compliance with applicable laws and regulations, including District ordinances and established procedures.

7.3 Dispute Resolution
If any dispute arises between the parties as to proper interpretation or application of this Agreement, the parties shall meet and confer in a good faith attempt to resolve the matter between themselves. If a dispute concerns any amounts to be paid to the District by the City, then the City shall pay the amount demanded on time, under protest, notwithstanding that the City has commenced or proposes to commence the dispute resolution procedures specified herein. If a dispute is not resolved by meeting and conferring within a period of thirty (30) 014
12 days after the first notice of the dispute is received by the non-disputing party, the matter shall be submitted for formal mediation to a mediator mutually agreed upon by the parties. The expenses of such mediation will be shared equally between the parties. If the dispute is not or cannot be resolved by mediation within one-hundred-twenty (120) days after the notice of the dispute is received by the non-disputing party, then either party may pursue any and all available legal and equitable remedies.

8. GENERAL CONDITIONS

8.1 Uncontrollable Circumstances
Each party will excuse performance by the other in the event of Uncontrollable Circumstances.

8.2 Indemnification and Hold Harmless
A. Indemnification by City. City and District agree that District, its Board of Directors, officers, employees and agents, shall to the extent permitted by law, be fully protected from any loss, injury, damage, claim, lawsuit, cost, expense, attorney's fees, litigation cost, defense cost, court cost or any other cost arising out of or in any way related to the performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the parties to be interpreted and construed to provide the fullest protection possible under the law to the District. City acknowledges that District would not enter into this agreement in the absence of this commitment to indemnify and protect District as set forth herein.

To the full extent permitted by law, the City shall defend, indemnify and hold harmless District, its Board of Directors, officers, employees and agents from any liability, claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, actual attorneys’ fees incurred by District, court costs, interest, defense costs, including expert witness fees, and any other costs or expenses of any kind whatsoever without restriction or limitation which arise from or are connected with or are caused or claimed to be caused by the sole or active negligence or willful misconduct of the City or its franchised waste hauler or contractor(s). All obligations under this provision are to be paid by the City as they are incurred by the District.
015
13 Without affecting the rights of the District under any provision of this Agreement or this section, the City shall not be required to indemnify and hold harmless District as set forth above for liability attributable to the active negligence of the District, its officers, employees or agents, provided such active negligence is determined by agreement between the parties or the findings of a court of competent jurisdiction. This exception will apply only in instances where the District is shown to have been actively negligent and not in instances where the City, or its franchised waste hauler or contractor(s) are solely or partially at fault or in instances where the District’s active negligence accounts for only a percentage of the liability involved. In those instances, the obligation of the City will be for that portion or percentage of liability not attributable to the active negligence of the District, as determined by written agreement between the parties or the findings of a court of competent jurisdiction.

Failure of the District to monitor compliance with these requirements imposes no additional obligations on District and will in no way act as a waiver of any rights hereunder and shall survive the termination of this Agreement or this section.

B. Indemnification by District. To the full extent permitted by law, the District shall defend, indemnify and hold harmless the City, its City Council, officers, employees and agents from any liability, claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, actual attorneys’ fees incurred by City, court costs, interest, defense costs, including expert witness fees, and any other costs or expenses of any kind whatsoever without restriction or limitation which arise from or are connected with or are caused or claimed to be caused by the sole or active negligence or the willful misconduct of the District. All obligations under this provision are to be paid by the District as they are incurred by the City.
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14 Without affecting the rights of the City under any provision of this Agreement or this section, the District shall not be required to indemnify and hold harmless City as set forth above for liability attributable to the active negligence of the City, its officers, employees, contractors or agents, provided such active negligence is determined by agreement between the parties or the findings of a court of competent jurisdiction. This exception will apply only in instances where the City or its franchised waste hauler or contractor(s) are shown to have been actively negligent and not in instances where the District is solely or partially at fault or in instances where the City’s active negligence accounts for only a percentage of the liability involved. In those instances, the obligation of the District will be for that portion or percentage of liability not attributable to the active negligence of the City, as determined by written agreement between the parties or the findings of a court of competent jurisdiction.

C. Notice of Claims
A party seeking indemnification shall promptly notify the other party of the assertion of any claim against it for which it seeks to be indemnified, shall give the other party the opportunity to defend such claim, and shall not settle the claim without the approval of the other party. These indemnification provisions are for the protection of the Parties only and shall not establish, of themselves, any liability to third parties. The provisions of this subsection shall survive termination of this Agreement.

8.3 Insurance
A. CITY’S INSURANCE. City shall require its franchise waste hauler to maintain, and require any of its subcontractors or others hired for this Agreement to maintain, insurance coverage as described hereunder effective the date first written above and such insurance shall remain in full force at all times throughout the full term of this Agreement.

Insurers providing coverage as required by this Agreement shall be acceptable to District and must be authorized to do business in the State of California.

Certificates of insurance or other evidence satisfactory to the District shall be furnished in duplicate, evidencing City coverage of Workers' Compensation Insurance, Commercial General Liability, and Comprehensive Auto Liability; such certificates shall show the insurer's name, policy number, limit of coverage, and the period of the policy and cancellation conditions of these specifications. Such certificates shall state that coverage there under shall 017
15 not be terminated or reduced in coverage until 30 days' written notice is given to General Manager of the District of cancellation or reduction in coverage; allow for severability of interest of District; and be primary and non-contributing with insurance maintained or selfinsured by the District.

The District shall be added, by endorsement to the policy for Commercial General Liability, Auto Liability and Employer's Liability coverage, as an additional insured party on the above-described policies, as they pertain to the operations of the named insured performed under this Agreement for the District. The District, as the additional insured party, shall be defined as follows: “Monterey Regional Waste Management District and Agency, its Council, boards and commissions, officers, employees, agents, and volunteers”. Entire limits of liability maintained must be certified but in no event shall limits be less than specified herein below:

Coverage Minimum Limit
Workers' Compensation Statutory
Employer's Liability $1,000,000 per accident or disease Comprehensive General Liability $1,000,000 Combined
General Aggregate $2,000,000
Single limit each occurrence
Comprehensive Auto Liability $1,000,000 Combined
B. DISTRICT INSURANCE. District shall, at its sole cost and expense, maintain in effect at all times during the Term of this Agreement not less than the following coverage and limits of insurance:

1. Limits.

Commercial General Liability – $1,000,000 combined single limit per occurrence for bodily injury, personal injury, and property damage.

Automobile Liability – $1,000,000 combined single limit per accident for bodily injury and property damage (include coverage for hired and non-owned vehicles).

Workers’ Compensation (WC) – Statutory Limits/Employers’ Liability.

General Liability and Auto Liability Limits of Insurance may be satisfied by a combination of primary and umbrella or excess insurance.

2. Additional Insured. The City, its officers, officials, employees, volunteers, representatives, and agents shall be named as additional insured on all but the WC. 018
16 3. Said policies shall remain in force through the life of this Agreement and shall be payable on a “per occurrence” basis unless City’s Risk Manager specifically consents in writing to a “claims made” basis. For all “claims made” coverage, in the event that the District changes insurance carriers District shall purchase “tail” coverage or otherwise provide for continuous coverage covering the Term of this Agreement and not less than three (3) years thereafter. Proof of such “tail” or other continuous coverage shall be required at any time that the District changes to a new carrier prior to receipt of any payments due.

4. The District shall declare all aggregate limits on the required coverage are in place before commencing performance of this Agreement and are available throughout the performance of this Agreement.

5. The deductibles or self-insured retentions are for the account of District and shall be the sole responsibility of the District.

6. District shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on insurance industry forms, provided those endorsements or policies conform to the contract requirements. All certificates and endorsements are to be received and approved by the City before work commences. “The City reserves the right to review at District’s corporate office copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. The District shall be allowed to redact information that it considers confidential”.

The Certificate with endorsements and notices shall be mailed to:

7. The policies shall cover all activities of District, its officers, employees, agents and volunteers arising out of or in connection with this Agreement.

8. For any claims relating to this Agreement, the District’s insurance coverage shall be primary, including as respects City, its officers, agents, employees, and volunteers.

Any insurance maintained by City shall apply in excess of, and not contribute to, 019
17 coverage provided by District’s liability insurance policy.

9. The District shall waive, by evidenced endorsement to the policy, all rights of subrogation against City, its officers, employees, agents, and volunteers.

10. Endorsements. Prior to the Effective Date pursuant to this Agreement, District shall furnish City with certificates or original endorsements reflecting coverage required by this Agreement. The certificates or endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All certificates or endorsements are to be received by, and are subject to the approval of, the City’s Risk Manager before work commences.

11. Renewals. During the Term of this Agreement, District shall furnish City with certificates or original endorsements reflecting renewals, changes in insurance companies, and any other documents reflecting the maintenance of the required coverage throughout the entire Term of this Agreement. The certificates or endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf.

12. Workers' Compensation. District shall provide workers’ compensation coverage as required by State law, and prior to the Effective Date pursuant to this Agreement, District shall file the following statement with City:
“I am aware of the provisions of Section 3700 of the Labor Code that require every employer to be insured against liability for workers' compensation or to undertake selfinsurance in accordance with the provisions of that code, and I will comply with such provisions before commencing any services required by this Agreement.

District agrees to include in any subcontract the same requirements and provisions of this Agreement including the indemnity and insurance requirements to the extent they apply to the scope of the Subcontractor's work. Subcontractors hired by District agree to be bound to District and City in the same manner and to the same extent as District is bound to City under the Contract Documents. Subcontractor further agrees to include these same provisions with any Sub-subcontractor. A copy of the Contract/Agreement and Insurance Provisions will be furnished to the Subcontractor. The District shall require all Subcontractors to provide a valid certificate of insurance and the required endorsements included in the Agreement prior to commencement of any work and will provide proof of compliance to the City.

The person executing this Certificate on behalf of District affirmatively represents that she/he has the requisite legal authority to do so on behalf of District, and both the person executing this Agreement on behalf of District and District understand that City is relying on this representation in entering into this Agreement.”

8.4 Solid Waste Origin
City may deliver solid waste collected by City or any other entity under subcontract to City. The District understands and agrees that up to 5% of the City’s Acceptable Waste delivered to the Monterey Peninsula Landfill during any twelve-month period may originate 020
18 outside the City. Waste originating outside City in excess of the 5% cap, may not be delivered without the express prior written consent of the District General Manager. All waste delivered must originate from a municipality or district that has implemented an approved Household Waste Collection Program and has fully implemented its SRRE.

8.5 Non-Assignment of Agreement
City may not assign this Agreement or any of the rights or obligations under this Agreement without the prior written consent of the District, which may be withheld at the District’s sole discretion. Any person or entity to whom this Agreement is assigned shall expressly agree to be bound by all provisions of this Agreement. City will remain liable to District for all obligations under this Agreement notwithstanding any assignment made pursuant to this clause.

8.6 Notices
Any notice required or permitted by this Agreement shall be in writing and sufficiently given if delivered in person or sent by certified or registered mail, postage prepaid, to the notice address of the respective parties set forth in this Agreement. Any changes to the respective addresses to which notices may be directed, may be made from time to time by any party by notice to the other party. The present addresses of the parties are:

District Monterey Regional Waste Management District
Attn: General Manager
Location for Direct Deliveries and Certified Mail:
14201 Del Monte Blvd., Monterey County, CA 93908 (Physical) P.O. Box 1670, Marina, CA 93933-1670 (Mailing Address)
City City of Scotts Valley.

Attn: City Manager
One Civic Center Drive
Scotts Valley, CA 95066

8.7 Indemnification for Taxes and Contributions
Each party shall exonerate, indemnify, defend, and hold harmless the other (which for the purpose of this paragraph shall include, without limitation, its officers, agents, employees, 021
19 and volunteers) from and against:

Any and all Federal, State and Local taxes, charges, fees, or contributions required to be paid with respect each party’s officers, employees and agents engaged in the performance of this Agreement (including, without limitation, unemployment insurance, social security, and payroll tax withholding).

8.8 Non-Discrimination
During and in relation to the performance of this Agreement, both parties agree as follows:

Neither party shall discriminate against any employee or applicant for employment because of race, color, religion, national origin, ancestry, physical or mental disability, medical condition (cancer related), marital status, sexual orientation, age (over 18), veteran status, gender, pregnancy, or any other non-merit factor unrelated to job duties. Such action shall include, but not be limited to, the following: recruitment, advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training (including apprenticeship), employment, upgrading, demotion, or transfer. Both parties agree to post in conspicuous places, available to employees and applicants for employment, notice setting forth the provisions of this non-discrimination clause.

8.9 Independent Contractor Status
The District and City have reviewed and considered the principal test and secondary factors for determining independent contractor status and agree that this is an independent contractor arrangement and that neither party is an employee of the other. Each party is responsible for its own insurance (workers’ compensation, unemployment, etc.) and all payroll-related taxes. Neither party is entitled to any employee benefits from the other. Each party shall have the right to control the manner and means of accomplishing the result contracted for herein.

8.10. Amendment or Modification
This Agreement may be amended, altered or modified only by a writing, specifying such amendment, alteration or modification, executed by authorized representatives of both of the parties hereto.
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20 8.11. Further Actions
Each of the parties shall execute and deliver to the other such documents and instruments, and to take such actions, as may reasonably by required to give effect to the terms and conditions of this Agreement.

8.12. Interpretation
This Agreement has been negotiated by and between the general managers and engineers or principals of both parties, all persons knowledgeable in the subject matter of this Agreement, which was then reviewed and drafted by attorneys representing both parties, in joint consultation with both general managers and engineers or principals. Accordingly, any rule of law (including Civil Code §1654) or legal decision that would require interpretation of any ambiguities in this Agreement against the party that has drafted it is not applicable and is waived. The provisions of this Agreement shall be interpreted in a reasonable manner to effect the purpose of the parties and this Agreement.

8.13 Captions
Titles or captions of sections and paragraphs contained in this Agreement are inserted only as a matter of convenience and for reference, and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision of it.

8.14 Severability
If any of the provisions of this Agreement are determined to be invalid or unenforceable, those provisions shall be deemed severable from the remainder of this Agreement and shall not cause the invalidity or unenforceability of the remainder of this Agreement, unless this Agreement without the severed provision would frustrate a material purpose of either party in entering into this Agreement.

8.15 Attorneys' Fees and Costs
In the event it should become necessary for either party to enforce any of the terms and conditions of this Agreement by means of court action or administrative enforcement, the prevailing party, in addition to any other remedy at law or in equity available to such party, shall be awarded all reasonable costs and reasonable attorney's fees in connection therewith, including the fees and costs of experts reasonably consulted by the attorneys for the prevailing party.
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21 8.16 Relationship of Parties
Nothing in this Agreement shall create a joint venture, partnership or principal-agent relationship between the parties.

8.17 Controlling Law; Jurisdiction
The parties agree that this Agreement and the rights and remedies of the parties hereunder shall be governed by California law. Each party consents to the exclusive jurisdiction of the Superior Court of California in and for the County of Monterey with respect to any dispute which is not otherwise resolved as herein provided and for the enforcement hereof.

8.18 Waiver
No waiver of any right or obligation of either party hereto shall be effective unless made in writing, specifying such waiver, executed by the party against whom such waiver is sought to be enforced. A waiver by either party of any of its rights under this Agreement or any other right at any time shall not be a bar to exercise of the same right on any subsequent or any other right at any time.

8.19 Counterparts
This Agreement may be executed in two counterparts, each of which shall be deemed an original, but both of which shall be deemed to constitute one and the same instrument.

8.20 Entire Agreement
This Agreement constitutes the entire and complete agreement between the parties regarding the subject matter hereof, and supersedes all prior or contemporaneous negotiations, understandings or agreements of the parties, whether written or oral, with respect to such subject matter.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
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22 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates opposite their respective signatures:

MONTEREY REGIONAL WASTE MANAGEMENT DISTRICT
Date: By
Chairperson of the Board of Directors

CITY OF SCOTTS VALLEY
Date: By
City Manager
ATTEST:

Date: By
MRWMD Board Secretary
Date: By
City Clerk
APPROVED AS TO FORM:

By Date:

District Legal Counsel
By Date:

City Attorney
APPROVED AS TO INSURANCE:

By Date:

City Risk Manager
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23 EXHIBIT A

REFUSE RATES
Effective Date of new Rates Current 7/1/2023 7/1/2024 and thereafter Posted MRWMD Refuse Rates $65.00 TBD TBD
Contractual Refuse Rates
City of Scotts Valley $50.00 $55.00 95% of Posted Refuse Rate Refuse Disposal Rates

EXHIBIT B

CONDITIONS & PROCEDURES FOR DELIVERY OF ACCEPTABLE WASTE BY

CITY OF SCOTTS VALLEY TO MONTEREY PENINSULA LANDFILL

1. The City will not deliver any Acceptable Waste to the Landfill after 4:00 P.M.

Monday-Saturday except in the case of an emergency, or with prior written approval of the District General Manager or his/her designee.

2. The types of vehicles to deliver Acceptable Waste will be Transfer Trucks or Refuse Collection Packer Trucks only.

3. The City will participate in a Household Hazardous Waste Program that complies with state law.

City delivery vehicles shall proceed to the Districts’ regular vehicle weighing scale system upon arrival at the Monterey Peninsula Landfill for all loads accepted. District staff will invoice the City monthly based upon weight provided by the Districts’ regular vehicle weighing scale system. Terms of payment will be net 30 day's upon receipt of invoice 026
24 EXHIBIT C

CITY HAZARDOUS MATERIALS REMOVAL PROGRAM
027
1 AGREEMENT FOR ORGANIC WASTE DIVERSION

SERVICES BY AND BETWEEN

THE MONTEREY REGIONAL WASTE MANAGEMENT

DISTRICT AND THE CITY OF SCOTTS VALLEY

THIS AGREEMENT FOR ORGANIC WASTE DIVERSION SERVICES
(hereinafter “Agreement”) is made and entered into on June ___, 2022 by and between the Monterey Regional Waste Management District, a public entity duly organized pursuant to the provisions of California Health and Safety Code sections 4170 et seq. (the "District"), and the City of Scotts Valley, a California general law city (the “City”) (collectively, the “Parties”), as follows:

B. The Parties agreed to extend that agreement subject to the terms of that certain agreement entitled Agreement To Continue Waste Disposal Services By And Between The Monterey Regional Waste Management District And The City Of Scotts Valley.

C. On September 17, 2016, the California Legislature passed Senate Bill 1383 which establishes regulatory requirements for jurisdictions, generators, haulers, solid waste facilities, and other entities to support achievement of State-wide Organic Waste Diversion (disposal reduction) targets.
028
2 D. The City desires to have a continued right to deliver Organic Waste to the Monterey Peninsula Landfill (“Landfill”).

E. The District is in the process of preparing a master plan for its facilities which may affect capacity and services offered at the Landfill’s organic processing area.

F. The Parties desire to enter into a short-term agreement for the processing, diversion, and disposal of Organic Waste at the Landfill subject to the terms of this Agreement until such time as the master plan is approved and changes are proposed at the Landfill.

G. District has determined that the execution by District of this Agreement will serve the public health, safety, and welfare of the District by providing a more stable, predictable and reliable supply of Organic Waste to optimize the District’s composting operations, and that the resulting revenue will assist in the District’s rate stabilization efforts and waste diversion programs.

NOW, THEREFORE, in consideration of the foregoing and the mutual promises hereinafter set forth, District and City agree to the following Terms and Conditions:

TERMS AND CONDITIONS

1. DEFINITIONS
As used in this Agreement, the following terms shall have the meanings set forth below.

1.1 "Applicable Law" means the Act, the Monterey County Code, CERCLA, RCRA, CEQA, SB 1383, any legal entitlement and any other rule, regulation, requirement, guideline, permit, action, determination, or order of any governmental body having jurisdiction, applicable from time to time, relating to the siting, design, permitting, acquisition, construction, equipping, financing, ownership, possession, management, operation, or maintenance of the Landfill or the transfer, handling, transportation, and disposal of Acceptable Waste, Unacceptable Waste, or any other transaction or matter contemplated hereby (including any of the foregoing which concern health, safety, fire, 029
3 environmental protection, labor relations, mitigation monitoring plans, building codes, non-discrimination and the payment of minimum wages).

1.2 "CEQA" means the California Environmental Quality Act (California Public Resources Code Section 21000 et seq.) as amended or superseded, and the regulations promulgated under the statute.

1.3 "CERCLA" means the Comprehensive Environmental Responsibility Compensation and Liability Act (42 U.S.C. Section 9601 et.seq.) as amended or superseded, and the regulations promulgated under the statute.

1.4 "Organic Waste Diversion Services" means the Organic Waste processing, diversion, and disposal services to be provided to the City by the District under this Organic Waste Diversion Agreement.

1.5 “Food Scraps" means those discarded materials that will decompose and/or putrefy including: (i) all kitchen and table food waste; (ii) or vegetable waste that is generated during or results from the storage, preparation, cooking or handling of food stuffs; (iii) (iv) fruit waste, grain waste, dairy waste, meat, and fish waste; and, (v) vegetable trimmings, houseplant trimmings and other Compostable organic waste common to the occupancy of residential dwellings. Food Scraps are a subset of Mixed Organic Waste.

1.6 “Mixed Organic Waste” means discarded organic materials that are collected from a residential customer that includes a mixture of Food Scraps and Yard Trimmings.

Mixed Organic Waste does not include items herein defined as Excluded Waste, and contaminants such as glass, plastic (including Compostable Plastics), ceramics, metal, waxed paper, animal waste, restaurant or commercially Collected post-consumer food waste, dirt, treated or painted wood, concrete, or tree stumps.

1.7 "Non-District Waste" also "Out-of- District Waste," means solid waste originating outside the jurisdictional boundaries of the District.

1.8 "Source Reduction and Recycling Element" or “SRRE" means a solid waste planning document prepared by each city and unincorporated county pursuant to Division 30, Section 41000 et seq. of the Act.

1.9 "Transfer Trucks" means any large, multi-axle vehicle not exceeding 80,000 pounds gross vehicle weight.
030
4 1.10 "Unacceptable Waste" means Hazardous Waste; Hazardous Substances; Hazardous Materials; untreated medical waste; Household Hazardous Waste that has been separated from Acceptable Waste; explosives; bombs; ordnance, such as guns and ammunition; highly flammable substances; noxious materials; drums and closed containers; liquid waste, including liquid concrete; oil; human wastes and sewage sludge; machinery and equipment from commercial or industrial sources, such as hardened gears, shafts; motor vehicles or major components thereof; agricultural equipment; trailers; marine vessels and steel cable; hot loads, including hot asphalt, and hot liquid sulfur; loads of whole tires; friable asbestos; and any waste which the Landfill is prohibited from receiving under Applicable Law.

1.11 "Uncontrollable Circumstances” means only the following acts, events or conditions, whether affecting the City, or the District, to the extent that it materially and adversely affects the ability of either party to perform any obligation under the Agreement, if such act, event or condition is beyond the reasonable control and is not also the result of the willful or negligent act, error or omission or failure to exercise reasonable diligence on the part of the party relying thereon as justification for not performing an obligation or complying with any condition required of such party under this Agreement:
a. an act of nature, hurricane, landslide, lightning, pandemic, earthquake, fire, explosion, flood, sabotage or similar occurrence, acts of a public enemy, extortion, war, blockade or insurrection, riot or civil disturbance; b. a change in law affecting either party's ability to perform an obligation or complying with any condition required of such party under this Agreement; c. pre-emption of materials or services by a Governmental Body in connection with a public emergency or any condemnation or other taking by eminent domain.

1.12 “Yard Trimmings” means those discarded materials that will decompose and/or putrefy, including, but not limited to, green trimmings, grass, weeds, flowers, leaves, prunings, branches, dead plants, brush, tree trimmings, dead trees, and other types of 031
5 materials resulting from normal yard and landscaping maintenance. Yard Trimmings does not include items herein defined as Excluded Waste. Yard Trimmings are a subset of Mixed Organic Waste.
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6 2. TERM OF AGREEMENT

2.1 Term of Agreement
The term of this Agreement shall commence on the date first written above and shall continue as long as the District’s existing processor continues compost operations on site. A 12-month notice will be given to City if the 3 rd party processor’s operations are
discontinued. The City shall give the District a 12-month notice if they choose to stop delivering organic waste to the District.

3. DELIVERY OF ORGANIC WASTE

3.1 Commitment to Deliver Organic Waste
The City shall be permitted to annually deliver Mixed Organic Waste to the Landfill during the term of this Agreement. Waste shall generally be delivered by organics collection or transfer vehicles of the City’s franchised waste hauler. Waste shall be delivered to the Landfill during the hours of 5:30 A.M. TO 4:00 P.M. Monday through Friday, and 8:00 A.M. to 4:00 P.M. on Saturdays, excepting certain holidays where closed or operating under shortened business hours, or as otherwise approved in writing by the District or as modified by a regulatory entity at the time of a permit renewal or issuance of a new permit. At any time, the City may redirect its Mixed Organic Waste to another landfill or processing facility.

3.2 City's Authority to Deliver Waste
The City warrants that it has and shall maintain during the term of this Agreement the right, power, and authority to deliver the Mixed Organic Waste to the District through franchises, contracts, permits, licenses, or other arrangements.

4. PROVISION OF ORGANIC WASTE DIVERSION SERVICES

4.1 Commitment to Provide Organic Waste Diversion Services The District agrees to provide Organic Waste Diversion Services to the City for the term of the Agreement under the conditions specified in the Agreement. The District warrants that it can receive City’s Mixed Organic Waste at the District’s composing facility, under the facility permit for the term of this Agreement.

4.2 Fee for Organic Waste Diversion Services
City shall pay an initial rate for Mixed Organic Waste delivered to District in the amount of $61.00/ton. For the entirety of this Agreement, all other materials and services shall be paid at rates equal to the District’s Posted Rates for such materials 033
7 and services, including Mixed Organic Waste, except where agreed to otherwise in writing by both parties. All changes to District’s Posted Rates are subject to approval by District’s Board of Directors, in the exercise of its sole discretion. For the purposes of this Agreement, the first year, or “Year 1”, shall begin on July 1, 2022 and end on June 30, 2023.

4.3 Payment for Organic Waste Diversion Services
The City is responsible for payment for Organic Waste Diversion Services and all other fees or charges under this Agreement. The District may, in its discretion, charge and accept payment from the City’s franchised waste hauler for Organic Waste Diversion Services but responsibility for payment of any charges not paid by the City’s franchised waste hauler remains the City’s responsibility. The diversion fee may be paid in cash in advance for each load at the time of delivery, or the District may elect to establish a deferred billing account under a process mutually agreed upon.

4.4 Annual Diversion Fee Increase Adjustment for Provision of Organic Waste Diversion Services
The rate specified in Section 4.2 shall be the initial rate through June 30, 2023.

All rate increases shall be effective on July 1 of each year.

4.5 Increase in Governmental Fees or District Costs Due to New Regulatory or Statutory Mandates
If any fees or charges are imposed or increased by law or regulation after the date first written above and levied on the District by any local, state, or federal government or a local enforcement agency, the District shall have the right, upon 30- days prior written notice to the City, to increase the then current fee charged to the City hereunder in an equitable manner relative to the services provided to the City under this Agreement. Any increased cost borne by the District due to new regulatory or statutory mandates beyond the District’s control shall be allocated based on the percentage of tons of waste delivered to the District by the City compared to all other tons delivered to the District and included in the diversion fee charged.

5. PROCEDURES FOR DELIVERY AND ACCEPTANCE OF WASTE

5.1 Procedures for Delivery and Acceptance of Out-of-District Waste City shall deliver Mixed Organic Waste to the District’s composting facility according to the conditions and procedures in Exhibit A. The General Manager of the 034
8 District and the City’s designee may mutually agree to modify Exhibit A, provided such modifications are made in writing signed by both parties and subject to the terms and conditions of this Agreement.

The City through its franchised waste hauler shall bear all costs of collection, processing, transfer, transportation, taxes, permits, or impositions assessed by any governmental body related to the delivery of Mixed Organic Waste to the Landfill. The District assumes all costs incurred as a result of the acceptance of the City’s Mixed Organic Waste.

5.2 Unacceptable Waste
The City shall act with reasonable due diligence to prevent the delivery of any waste to the Landfill that is defined as Unacceptable Waste under this Agreement.

5.3 Out-of-City Waste
Only Mixed Organic Waste originating inside of the City (with the exception of up to 5% of out-of-City waste per Section 8.4) may be delivered to the District’s composting facility pursuant to this Agreement. City shall maintain records and supporting source documents that adequately identify the origin of all Mixed Organic Waste delivered by the City to the District’s composting facility pursuant to this Agreement. All records and source documentation shall be maintained by the City for a minimum of five years following the termination of this Agreement. Documents shall be maintained in a location mutually acceptable to District and City.

If any Audit of the City’s or its franchised hauler’s invoices or other records reveals any variance from any invoice for waste delivered to the District in excess of five percent (5%) of the amount shown on such invoice, or if the City has failed to maintain true and complete books, records and supporting source documents in accordance with this Section, City shall immediately reimburse District for all costs and expenses incurred in conducting such Audit.
035
9 5.4 Hazardous Materials, Substances or Waste
The City shall act with reasonable due diligence to prevent the delivery of Unacceptable Wastes, Hazardous Materials, Hazardous Substances, or Hazardous Waste to the District’s composting facility. The City program for detection and removal of Hazardous Materials, Hazardous Waste, Hazardous Substances or Unacceptable Waste from Acceptable Waste ("Hazardous Materials Removal Program") is set out in Exhibit B, incorporated herein by this reference as if fully set forth herein.

The intentional delivery any quantity of Hazardous Waste shall constitute a material breach of this Agreement.

5.5 Emergency Re-Designation of Facility
The District shall have the right to suspend acceptance of Mixed Organic Waste to the District’s composting facility at any time for up to 45-days upon the occurrence of a natural disaster or other Uncontrollable Circumstances which affect the ability of the District to accept, under Applicable Law, City’s otherwise Mixed Organic Waste at the District’s composting facility.

The District will make every reasonable effort to provide advance notice; however, exigent circumstances may require re-designation of Mixed Organic Waste on a temporary basis without prior notice. No adjustments shall be made to the diversion fee of organic waste redirected due to emergency.

5.6 Mutual Aid
In the event of an emergency, the parties may provide mutual aid to one another through the sharing of resources.

5.7 Weights for Payment
Payment shall be based upon weight provided by the Districts’ regular vehicle weighing scale system.

6. REGULATORY COMPLIANCE
036
10 6.1 Applicable Law
Throughout the term of this Agreement the parties shall comply with Applicable Law; and shall obtain and maintain any permits, licenses, or approvals which are required for the performance of the party's respective obligations under this Agreement.

6.3 Reporting
The City shall supply all information necessary to comply with the District’s Diversion and Disposal Reporting System and any other information required by the District to comply with the Act, or any other Applicable Law.

6.4 Recordkeeping and Reporting
Upon the City’s request, the District shall provide any and all records and/or reports related specifically to the use of facilities relied upon by the District for performance under this Agreement that have been provided to other governmental agencies, including but not necessarily limited to: County of Monterey, Regional Water Quality Board, Air Quality Management District, or CalRecycle, unless such records are the subject of litigation disclosure or confidentiality agreements, or where disclosure is limited or prohibited in accordance with State or local privacy laws.

6.5 Capacity Assurance
The District warrants that as of the Commencement Date, it has sufficient capacity to process, divert, and dispose of all Mixed Organic Waste throughout the Term, and that it shall maintain that capacity throughout the Term and any extension. 037
11 6.6 SB 1383 Requirements
District’s performance of services described in this Agreement shall be performed in accordance with those provisions of the SB 1383 regulations, incorporated herein by reference, which specifically pertain to District’s Organic Waste Diversion Services under this Agreement and which does not pertain solely to services provided by the City’s franchised collector or programs operated by the City.

7. TERMINATION, DEFAULT AND REMEDIES

7.1 Termination for Convenience
Commencing on the first day of the fifth year of this agreement, the District may terminate this Agreement in the event the District has completed its master plan and has implemented new policies, procedures and fees for the processing, diversion, and disposal of Mixed Organic Waste; provided the District has negotiated in good faith with the City to execute a new agreement subject to the new policies, procedures and fees for the processing, diversion, and disposal of Mixed Organic Waste.

7.2 Termination for Cause
Either party may terminate this Agreement for cause for the reasons set forth below. In the case of termination for cause, the terminating party shall not be liable to the non-terminating party for any damages incurred due to early termination, including, but not limited to, consequential damages.
a. Termination for Cause by District
The District may terminate for cause if:
i. The City delivers waste originating outside the City in excess of 5% (paragraph 5.3).
b. Termination for Cause by City
The City may terminate for cause if the District is unable to accept Mixed Organic Waste for more than 45-days and the parties are unable to reach a mutually acceptable resolution through modification of this Agreement (paragraph 5.5). c. Termination for Cause by Either Party
Either party may terminate for cause if:
i. The District is ordered by court of competent jurisdiction to cease providing Organic Waste Diversion Services under the terms and conditions of this Agreement. In such event District 038
12 will not be liable for actual or consequential damages due to the inability to provide Organic Waste Diversion Services.
ii The other party is determined to be in violation of Applicable Law, despite reasonable due diligence.
d. Opportunity for Cure
If either party fails to perform any of its obligations hereunder, that party shall have 30 business days from receipt of written notice of default from the other party within which to cure such default.

7.3 Dispute Resolution
If any dispute arises between the parties as to proper interpretation or application of this Agreement, the parties shall meet and confer in a good faith attempt to resolve the matter between themselves. If a dispute concerns any amounts to be paid to the District by the City, then the City shall pay the amount demanded on time, under protest, notwithstanding that the City has commenced or proposes to commence the dispute resolution procedures specified herein. If a dispute is not resolved by meeting and conferring within a period of thirty (30) days after the first notice of the dispute is received by the non-disputing party, the matter shall be submitted for formal mediation to a mediator mutually agreed upon by the parties. The expenses of such mediation will be shared equally between the parties. If the dispute is not or cannot be resolved by mediation within one-hundred-twenty (120) days after the notice of the dispute is received by the non-disputing party, then either party may pursue any and all available legal and equitable remedies.

8. GENERAL CONDITIONS

8.1 Uncontrollable Circumstances
Each party will excuse performance by the other in the event of Uncontrollable Circumstances.

8.2 Indemnification and Hold Harmless
a. Indemnification by City. City and District agree that District, its Board of Directors, officers, employees and agents, shall to the extent permitted by law, be fully protected from any loss, injury, damage, claim, lawsuit, cost, expense, attorney's fees, litigation cost, defense cost, court cost or any other cost arising out of or in any way related to the performance of this Agreement. Accordingly, the provisions of this indemnity 039
13 provision are intended by the parties to be interpreted and construed to provide the fullest protection possible under the law to the District. City acknowledges that District would not enter into this agreement in the absence of this commitment to indemnify and protect District as set forth herein.

Without affecting the rights of the District under any provision of this Agreement or this section, the City shall not be required to indemnify and hold harmless District as set forth above for liability attributable to the active negligence of the District, its officers, employees or agents, provided such active negligence is determined by agreement between the parties or the findings of a court of competent jurisdiction. This exception will apply only in instances where the District is shown to have been actively negligent and not in instances where the City, or its franchised waste hauler or contractor(s) are solely or partially at fault or in instances where the District’s active negligence accounts for only a percentage of the liability involved. In those instances, the obligation of the City will be for that portion or percentage of liability not attributable to the active negligence of the District, as determined by written agreement between the parties or the findings of a court of competent jurisdiction.

The City shall obtain executed indemnity agreements from its franchised waste hauler and any contractor or any other person or entity involved by, for, with or on behalf of the City in the performance or subject matter of this Agreement. In the event the City fails to obtain such indemnity obligations from others as required here, the City shall be fully responsible according to the terms of this section.
040
14 Failure of the District to monitor compliance with these requirements imposes no additional obligations on District and will in no way act as a waiver of any rights hereunder and shall survive the termination of this Agreement or this section. b. Indemnification by District. To the full extent permitted by law, the District shall defend, indemnify and hold harmless the City, its City Council, officers, employees and agents from any liability, claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, actual attorneys’ fees incurred by City, court costs, interest, defense costs, including expert witness fees, and any other costs or expenses of any kind whatsoever without restriction or limitation which arise from or are connected with or are caused or claimed to be caused by the sole or active negligence or the willful misconduct of the District. All obligations under this provision are to be paid by the District as they are incurred by the City.

Without affecting the rights of the City under any provision of this Agreement or this section, the District shall not be required to indemnify and hold harmless City as set forth above for liability attributable to the active negligence of the City, its officers, employees, contractors or agents, provided such active negligence is determined by agreement between the parties or the findings of a court of competent jurisdiction. This exception will apply only in instances where the City or its franchised waste hauler or contractor(s) are shown to have been actively negligent and not in instances where the District is solely or partially at fault or in instances where the City’s active negligence accounts for only a percentage of the liability involved. In those instances, the obligation of the District will be for that portion or percentage of liability not attributable to the active negligence of the City, as determined by written agreement between the parties or the findings of a court of competent jurisdiction.
c. Notice of Claims
A party seeking indemnification shall promptly notify the other party of the assertion of any claim against it for which it seeks to be indemnified, shall give the other party the opportunity to defend such claim, and shall not settle the claim without the approval of the other party. These indemnification provisions are for the protection of the Parties only and shall not establish, of themselves, any liability to third parties. The provisions of this subsection shall survive termination of this Agreement. 041
15 8.3 Insurance
a. City’s Insurance. City shall require its franchise waste hauler to maintain, and require any of its subcontractors or others hired for this Agreement to maintain, insurance coverage as described hereunder effective the date first written above and such insurance shall remain in full force at all times throughout the full term of this Agreement. Insurers providing coverage as required by this Agreement shall be acceptable to District and must be authorized to do business in the State of California.

Certificates of insurance or other evidence satisfactory to the District shall be furnished in duplicate, evidencing City coverage of Workers' Compensation Insurance, Commercial General Liability, and Comprehensive Auto Liability; such certificates shall show the insurer's name, policy number, limit of coverage, and the period of the policy and cancellation conditions of these specifications. Such certificates shall state that coverage there under shall not be terminated or reduced in coverage until 30 days' written notice is given to General Manager of the District of cancellation or reduction in coverage; allow for severability of interest of District; and be primary and noncontributing with insurance maintained or self-insured by the District.

Coverage Minimum Limit
Workers' Compensation Statutory
Employer's Liability $1,000,000 per accident or
disease
Comprehensive General Liability $1,000,000 Combined
General Aggregate $2,000,000
Single limit each occurrence
Comprehensive Auto Liability $1,000,000 Combined
042
16 b. District Insurance. District shall, at its sole cost and expense, maintain in effect at all times during the Term of this Agreement not less than the following coverage and limits of insurance:
i. Limits.

Commercial General Liability – $1,000,000 combined single limit per occurrence for bodily injury, personal injury, and property damage.

Automobile Liability – $1,000,000 combined single limit per accident for bodily injury and property damage (include coverage for hired and non-owned vehicles).

Workers’ Compensation – Statutory Limits/Employers’ Liability.

General Liability and Auto Liability Limits of Insurance may be satisfied by a combination of primary and umbrella or excess insurance. ii. Additional Insured. The City, its officers, officials, employees, volunteers, representatives, and agents shall be named as additional insured on all but the workers’ compensation coverage.
iii. Said policies shall remain in force through the life of this Agreement and shall be payable on a “per occurrence” basis unless City’s Risk Manager specifically consents in writing to a “claims made” basis. For all “claims made” coverage, in the event that the District changes insurance carriers District shall purchase “tail” coverage or otherwise provide for continuous coverage covering the Term of this Agreement and not less than three (3) years thereafter. Proof of such “tail” or other continuous coverage shall be required at any time that the District changes to a new carrier prior to receipt of any payments due.
iv. The District shall declare all aggregate limits on the required coverage are in place before commencing performance of this Agreement and are available throughout the performance of this Agreement.

Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days’ prior written notice (10 days for non-payment) has been given to the City. If District’s insurer refuses to provide this endorsement, District shall be responsible for providing written notice to the City that coverage will be canceled thirty (30) days after the date of the notice or ten (10) days for non-payment. v. The deductibles or self-insured retentions are for the account of District and shall be the sole responsibility of the District.
vi. District shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on insurance industry forms, provided those endorsements or policies 043
17 conform to the contract requirements. All certificates and endorsements are to be received and approved by the City before work commences. “The City reserves the right to review at District’s corporate office copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. The District shall be allowed to redact information that it considers confidential”.

The Certificate with endorsements and notices shall be mailed to:

City of Scotts Valley
City Manager
One Civic Center Drive
Scotts Valley, CA 95066
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A-VII, unless otherwise approved by City Risk Manager. vii. The policies shall cover all activities of District, its officers, employees, agents and volunteers arising out of or in connection with this Agreement. viii.For any claims relating to this Agreement, the District’s insurance coverage shall be primary, including as respects City, its officers, agents, employees, and volunteers. Any insurance maintained by City shall apply in excess of, and not contribute to, coverage provided by District’s liability insurance policy. ix. The District shall waive, by evidenced endorsement to the policy, all rights of subrogation against City, its officers, employees, agents, and volunteers. x. Endorsements. Prior to the Effective Date pursuant to this Agreement, District shall furnish City with certificates or original endorsements reflecting coverage required by this Agreement. The certificates or endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All certificates or endorsements are to be received by, and are subject to the approval of, the City’s Risk Manager before work commences. xi. Renewals. During the Term of this Agreement, District shall furnish City with certificates or original endorsements reflecting renewals, changes in insurance companies, and any other documents reflecting the maintenance of the required coverage throughout the entire Term of this Agreement. The certificates or endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf.
xii. Workers' Compensation. District shall provide workers’ compensation coverage as required by State law, and prior to the Effective Date pursuant to this Agreement, District shall file the following statement with City:
“I am aware of the provisions of Section 3700 of the Labor Code that require every employer to be insured against liability for workers' compensation or to undertake selfinsurance in accordance with the provisions of that code, and I will comply with such 044
18 provisions before commencing any services required by this Agreement.

Subcontractor further agrees to include these same provisions with any Subsubcontractor. A copy of the Contract/Agreement and Insurance Provisions will be furnished to the Subcontractor. The District shall require all Subcontractors to provide a valid certificate of insurance and the required endorsements included in the Agreement prior to commencement of any work and will provide proof of compliance to the City.

8.4 Mixed Organic Waste Origin
City may deliver Mixed Organic Waste collected by City or any other entity under subcontract to City. The District understands and agrees that up to 5% of the City’s Mixed Organic Waste delivered to the District’s composting facility during any twelvemonth period may originate outside the City. Waste originating outside City in excess of the 5% cap, may not be delivered without the express prior written consent of the District’s General Manager. All waste delivered must originate from a municipality or district that has implemented a SB1383 diversion program and an approved Household Waste Collection Program and has fully implemented its SRRE.

8.6 Notices
Any notice required or permitted by this Agreement shall be in writing and sufficiently given if delivered in person or sent by certified or registered mail, postage prepaid, to the notice address of the respective parties set forth in this Agreement. Any 045
19 changes to the respective addresses to which notices may be directed, may be made from time to time by any party by notice to the other party. The present addresses of the parties are:

8.8 Non-Discrimination
During and in relation to the performance of this Agreement, both parties agree as follows:

Neither party shall discriminate against any employee or applicant for employment because of race, color, religion, national origin, ancestry, physical or mental disability, medical condition (cancer related), marital status, sexual orientation, age (over 18), veteran status, gender, pregnancy, or any other non-merit factor unrelated to job duties. Such action shall include, but not be limited to, the following:
recruitment, advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training (including apprenticeship), employment, 046
20 upgrading, demotion, or transfer. Both parties agree to post in conspicuous places, available to employees and applicants for employment, notice setting forth the provisions of this non-discrimination clause.

8.11. Further Actions
Each of the parties shall execute and deliver to the other such documents and instruments, and to take such actions, as may reasonably by required to give effect to the terms and conditions of this Agreement.

Accordingly, any rule of law (including Civil Code §1654) or legal decision that would require interpretation of any ambiguities in this Agreement against the party that has drafted it is not applicable and is waived. The provisions of this Agreement shall be interpreted in a reasonable manner to effect the purpose of the parties and this Agreement.

8.13 Captions
047
21 Titles or captions of sections and paragraphs contained in this Agreement are inserted only as a matter of convenience and for reference, and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision of it.

8.16 Relationship of Parties
Nothing in this Agreement shall create a joint venture, partnership or principalagent relationship between the parties.

8.19 Counterparts
048
22 This Agreement may be executed in two counterparts, each of which shall be deemed an original, but both of which shall be deemed to constitute one and the same instrument.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
049
23 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates opposite their respective signatures:

MONTEREY REGIONAL WASTE MANAGEMENT DISTRICT
Date: By
Chairperson of the Board of Directors

CITY OF SCOTTS VALLEY
Date: By
City Manager
ATTEST:

Date: By
MRWMD Board Secretary
Date: By
City Clerk
APPROVED AS TO FORM:

By Date:

District Legal Counsel
By Date:

City Attorney
APPROVED AS TO INSURANCE:

By Date:

City Risk Manager
050
24 EXHIBIT A

CONDITIONS & PROCEDURES FOR DELIVERY OF ACCEPTABLE WASTE BY

CITY OF SCOTTS VALLEY TO MONTEREY PENINSULA LANDFILL

1. The City will not deliver any Acceptable Waste to the Landfill after 4:00 P.M.

Monday-Saturday except in the case of an emergency, or with prior written approval of the District General Manager or his/her designee.

2. The types of vehicles to deliver Acceptable Waste will be Transfer Trucks or Refuse Collection Packer Trucks only.

3. The City will participate in a Household Hazardous Waste Program that complies with state law.

CITY HAZARDOUS MATERIALS REMOVAL PROGRAM
052

AGENDA ITEM G
DATE: 06-01-2022
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: June 1, 2022
TO: Honorable Mayor and City Council
FROM: Tyler Thomas, Maintenance Division Manager
Chris Lamm, Public Works Director / City Engineer
APPROVED: Mali LaGoe, City Manager
SUBJECT: APPROVAL OF ON-CALL PROFESSIONAL SERVICE

AGREEMENTS

SUMMARY OF ISSUE
The public works department is responsible for planning, building, and maintaining the City’s infrastructure. The department is comprised of engineering, maintenance, wastewater, and recreation divisions managing projects per the City’s capital improvement program (CIP) and development service needs. Such projects may include design, master planning, development permit review, utility upgrades, building and park maintenance, and street and sidewalk repairs. Currently, public works projects are overseen by staff engineers and supplemented with contract consulting services as technical need or staffing resources require.

On-call agreements are an efficient tool for providing technical staff support and shorten the time needed to identify vetted/qualified firms while adhering to City purchasing policies. This enables the City to more quickly respond to needs by utilizing these consulting firms’ services on an as-needed basis for a specific activity. These services are temporary and obtained only for the length of time needed to complete thetasks. Oncall agreements that involve professional services only provide a list of qualified and vetted consulting firms. Once an on-call agreement is in place with the listed firms, staff interacts with these firms on an as-needed basis to find the most appropriate level of expertise and knowledge to carry out a specific task.

The on-call agreement includes the same language as the City’s standard services contract and requires the consultant to provide proof of insurance and to indemnify and hold the City harmless for the work performed. The agreements will be for three years with an option to extend yearly for up to two additional years.

On February 4,2022 the City issued a request for qualifications (RFQ) for on-call arborist 001

AGENDA ITEM G
DATE: 06-01-2022
services, architectural, landscape architectural, civil engineering, project management, MEP (mechanical, electrical, and plumbing) engineering, construction inspection, general municipal engineering, materials testing, and transportation engineering services to develop a list of firms to award on call agreements. On February 25, 2022, the City received 27 submittals in response to the RFQ. Out of the 27 responses, there were no submittals for MEP engineering. On April 28, 2022, the City issued another RFQ for MEP engineering services to assist with two immediate projects and future needs.

The first project being installation of back-up generators at the Senior Center and Community Center to provide back-up power during major storm events or PSPS events in the City or surrounding areas. These two City buildings are currently used as emergency evacuation centers for the County of Santa Cruz during storms that pose a high debris flow risk in burn scar areas. Evacuation centers are critical to our residents, and the residents of surrounding areas, during storm events. It is critical that these facilities be well equipped and prepared to attend to the needs of our residents. The City was able to purchase the generators through an Office of Emergency Services (OES) grant, but upon bidding for installation it was apparent that further design work was needed to ensure proper installation and connection to the existing electrical systems.

The second project that will utilize the on-call agreement will be upgrades to the current HVAC system at City Hall and the Police Department which has had persistent issues, including major malfunctions, for the past serval years. The City Hall HVAC system is unreliable and continues to incur costly repairs. The maintenance department has been providing repairs on an as-needed basis; however, it is apparent that these repairs are reactive versus proactive. These reactive repairs are costly and interfere with the work of City staff. A reactive approach to repairing the HVAC infrastructure within City Hall and the Police Department is not fiscally responsible. This project will also help the City find a more energy efficient system that can decrease our energy usage and provide an improved work environment to City staff.

On May 13, 2022, the City received 3 submittals to the RFQ.

On-Call Service Proposals Received
MEP 3
Total Proposal Received 3
Table 1: Proposals
Staff reviewed and ranked proposals by type of on-call service. Upon review, staff identified firms that would best provide the range of specialties for MEP services.

Proposers were chosen based on several selection criteria including qualifications, key personnel, fee structure, reference projects, availability to complete work, along with other factors. Staff recommends entering into agreements with all three firms who proposed for MEP services. Refer to Table 2 below for the selected firms and types of services that can be provided.
002

AGENDA ITEM G
DATE: 06-01-2022
On-Call Service Firm(s) Selected Types of services (Illustrative) MEP
• EDesignC
• Advance Design
Consultants
• Borrelli and Associates
• Project development
• MEP design
• Preparing as built drawings
• Construction support
• Building permitting assistance
Table 2: Selected Firms
Once a specific firm from the list is identified for a task, the City will solicit scope, schedule and cost information about the task(s) requested and establishes a purchase order for a not-to-exceed amount from a funding source as included in either the annual operating or approved CIP budget.

FISCAL IMPACT
The authorization of these on-call agreements would not result in a direct expenditure of City resources. Tasks would be assigned through the on-call agreements to meet the needs and demands identified for each future fiscal year through the adoption of the annual budget and capital improvement program.

The contract amount for services would be identified for each project, depending on the scope of work/services, the number and type of professionals/technicians used, and the level of community engagement needed. The costs of these services are budgeted in the program or capital project for which the services are needed. No additional appropriations are being requested at thistime.

STAFF RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to negotiate and execute three-year on-call agreements in a form acceptable to the City Attorney with multiple consulting firms, listed in Table 2 for; on-call MEP services with options to extend the agreements on a yearly basis for up to two additional years; and authorize the execution of purchase orders under the on-call agreements up to the budgeted amount. 003

AGENDA ITEM H
DATE: 06-01-2022
City of Scotts Valley

SUMMARY OF ISSUE
At the City Council strategic planning sessions this spring, a focus was placed on the restoration of parks to improve the quality of life of the residents of Scotts Valley. At current staffing levels, the Public Works department is unable to provide the regular necessary attention to the various parks, or city facility landscape areas around town.

Public Works has utilized contract landscaping services to supplement staff resources in the past as an effective way to ensure regular maintenance activities are performed and not skipped when higher priority tasks arise.

The City recently entered into a multi-year agreement with Brightview Landscaping, Inc. for the maintenance of the Skypark soccer fields and Skypark subdivision greenbelts.

Additionally, the City has several other landscape contractors who perform various tasks around the City, however, many of these agreements are expired, or are performed under month to month invoicing.

The purpose of this request for proposals (RFP) is to consolidate existing landscape maintenance agreements and to ensure regular maintenance activities occur in areas where existing agreements are not in place. The locations identified for landscape services include:
• Skypark Open Space Linear Trail
• Pinewood Estates meandering sidewalk and landscaping
• Medians island on Scotts Valley Drive and Mount Hermon Road • Community Center
• Senior Center
• Library landscaping
001

AGENDA ITEM H
DATE: 06-01-2022
The Skypark Open Space Linear Trail scope of work includes annual replacement of 200 feet of fencing, and a one-time refresh of the decomposed granite pathway in addition to the monthly activities of pruning, trimming, and other general landscape maintenance. It also includes annual placement of organic mulch to prohibit weed growth. A neighborhood meeting was held on May 25, to introduce the proposed contractor and the planned work activities in the upcoming year.

A key aspect of this RFP and the contract that follows is the City’s new obligations to meet the requirements of SB 1383. The bill places new requirements on government agencies throughout the state regarding their organic waste collection and under the Bill, agencies are required to purchase a set tonnage of organic recovered material such as mulch or compost. The City of Scotts Valley is required to purchase 940-tons of material. The City can take credit for tonnage purchased through requirements placed on its contractors, and language was included to procure organic material for mulch that will be placed. By approving the proposed contract for landscape maintenance, the City will meet over half of the 940-ton requirement put in place by SB 1383.

This landscape maintenance contract is multifaceted and diverse. It will ensure that these City properties are well maintained and appealing while also ensuring we are meeting our environmental obligations and goals. With the residents of Scotts Valley being a priority, we want these City facilities to be well maintained for everyone’s enjoyment, both present and future. In the past, these areas have been maintained by various contractors, by city staff, or received little to no maintenance. By implementing a new contract that includes the above City properties or rights of way, the maintenance will be performed regularly and not skipped for other emergencies. Additionally, with dedicated resources identified for these areas, Public Works staff will be able to focus park maintenance activities elsewhere.

The City issued the RFP on March 25, 2022, for Landscape Maintenance Services.

Proposals were due on April 21, 2022. The City received four bids. Total annual values of work requested were as follows:

K&D Landscape, Inc $200,961.96
Costal Evergreen $259,950.00
Brightview Landscape Services $304,749.48
New Image Landscape Company $531,164.00
K&D Landscape, Inc., was found to be the lowest responsible and responsive bidder.

References of other public agencies where similar work was being performed were checked and no issues were identified. K&D most recently performed the restoration work on the Skypark soccer fields. Staff recommends proceeding with the award of the contract.
002

AGENDA ITEM H
DATE: 06-01-2022

FISCAL IMPACT
By awarding the multi-year contract, the fiscal impact to the City would be up to $200,961.96 a year. This cost would be split between the general fund operation budgets, special revenue funds, as well as the two special districts: Skypark assessment district and Pinewood estates assessment district.

Obligations under SB 1383 to purchase these organic materials represent a substantial portion of this contract total in the sum of $106,641.55.

Skypark Open Space – Linear Trail (Skypark Assessment District) $ 37,656.09 Pinewood Estates Assessment District $ 3,920.83
Community Center – Special Revenue Fund $ 5,478.51
Senior Center – Special Revenue Fund $ 3,083.89
Library – Special Revenue Fund $ 6,157.99
Median Islands (PW-Street Maintenance) $ 18,023.10
SB1383 Organic Mulch (PW-Parks Maintenance) $ 106,641.55 Contingency (~10%) $ 20,000.00
Total Contract Value $ 200,961.96

STAFF RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to negotiate and execute a three-year contract with K&D Landscaping Inc., with options to extend up to two additional years in a form acceptable to the City Attorney.

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K&D Landscaping Proposal ........................................................................................... 4 003
K & D Landscaping, Inc.
62-C Hanger Way
Watsonville, CA 95076
Phone: (831) 728-4018
Fax: (831) 728-6544
License Number: 664584
April 20, 2022

STATEMENT OF QUALIFICATIONS
Tyler Thomas
The City of Scotts Valley
RE: RFP Landscape Maintenance Services
Dear Tyler, I would like to thank you for the opportunity to provide a Landscape Maintenance Proposal for the City of Scotts Valley.

I feel K&D Landscaping is well qualified to provide the specified services per the RFP. We have been in business for well over 30-years and we have the experience to provide professional landscape services for large sites including parks, school campuses and resorts.

K&D was founded on six core values that we live by daily; these core values are Professionalism, Teamwork, Humility, Hunger, Safety and Respect. Every K&D team member strives to meet or exceed goals and expectations, always keeping these core values in sharp focus. At K&D, excellence is our goal, and we will take the task of maintaining your grounds very seriously. We are a full-service company equipped to handle all your landscaping needs and we are excited to partner with you to make sure your landscaping reaches its full potential.

Our plan is to familiarize our staff with the expectations, specific needs, and goals of this property to ensure your landscaping is maintained in a way that meets and exceeds your expectations.

We will partner with your team to ensure all requirements of quality, safety and appearance are met.

Our experienced management team will provide the required oversight to ensure all challenges and expectations are handled in the most professional manner possible.

We provide ongoing training to ensure all team members are working efficiently & safely.

We offer health insurance, profit sharing, matching 401-K plans and much more. Working collaboratively with our landscape construction, Irrigation, and horticulture teams we can deliver comprehensive service.

Please review our enclosed proposal at your earliest convenience and do not hesitate to reach out to me directly with any questions that may arise. I look forward to your response.

Sincerely,
Kendel White
President & founder
K&D Landscaping Inc.
[email protected] / (831) 728-4018
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License and Certifications
Description...............................................................................................................Number

1. Contractor’s License C-27 ........................................................................... #664584

2. I.A. Certified Irrigation Technician ................................................................ 115137

3. Pesticide Control Business License ............................................................... #36845

4. Qualified Pesticide Applicators License ...................................................... #140636

5. Dept. of Industrial Relations............................................................. #10000003902

6. Dun & Bradstreet................................................................................#31-153-4405 We proudly support and are members of the following
associations:

1. California Landscape Contractors Association.................................................. CLCA

2. Santa Cruz County Business Council .............................................................. SCCBC

3. Santa Cruz Area Chamber of Commerce .......................................................... SCCC

4. Pajaro Valley Chamber of Commerce & Agriculture ........................................PVCC

5. Building Owners and Managers Association ..................................................BOMA

6. Educational Community of Homeowners........................................................ ECHO

7. Pesticide Applicators Professional Association ................................................PAPA

8. Irrigation Association ............................................................................................. IA

9. Employee - Employer Assistance Program. ........................................... EEAP Safety 005
Relevant Property Experience

1. County of Monterey- Various Properties
a. Salinas
b. Pajaro
c. Seaside
d. Marina

2. Seascape Resort -Aptos

3. City of Watsonville Pinto Lake Park & Franich Field Park a. K&D has maintained these (2) parks for the city of Watsonville b. Civic Center

4. City of Santa Cruz-Variuos properties and projects

5. Westridge Business Park-Watsonville
a. This 30-acre business park is located at the corner of Green Valley Road & Highway 1 b. K&D has provided professional, high quality landscaping services for the Westridge Business Park since 1989. With demanding clients such as West Marine, Golds Gym, Driscolls and many more we take pride in delivering excellent service 365 days a year.
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