AGENDA
Meeting of the
Scotts Valley City Council
In-Person and Remote Access
Date: May 20, 2026
Time: 6:00 PM
CONTACT
INFORMATION
MEETING LOCATION POSTING
City of Scotts Valley
1 Civic Center Drive
Scotts Valley, CA 95066
(831) 440-5600
City Council Chambers
1 Civic Center Drive
Scotts Valley, CA 95066
OR
Zoom Video Conference
https://us02web.zoom.us/j/83295730901
Agenda posted on 5-15-
2026 at City Hall, SV
Senior Center, SV Public
Works Building, and on the
Internet
at: www.scottsvalley.gov
ELECTED OFFICIALS CITY STAFF MEMBERS
Donna Lind, Mayor
Steve Clark, Vice Mayor
Krista Jett, Council Member
Derek Timm, Council Member
Greg Wimp, Council Member
Mali LaGoe, City Manager
Kirsten Powell, City Attorney
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 in the City Hall Council Chambers located at 1 Civic Center Drive, Scotts Valley, CA 95066, and via Zoom Webinar remote access.
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:
www.scottsvalley.gov and in the lobby of City Hall at 1 Civic Center Drive, Scotts Valley, CA.
Pursuant to Government Code §54957.5, materials related to an agenda item, submitted after distribution of the agenda packet, are available for public inspection in the lobby of City Hall during normal business hours, Monday-Friday, 8am-12 pm and 1-5 pm. In accordance with AB 1344, such documents will be posted on the City’s website at www.scottsvalley.gov.
Public Participation:
The meeting will be available on Zoom and livestreamed to the City of Scotts Valley’s YouTube channel: https://www.youtube.com/@cityofscottsvalley
For those wishing to participate via Zoom you can join the following ways:
Zoom Webinar meeting link: https://us02web.zoom.us/j/83295730901 Or dial one of these numbers: (669) 900-9128 or (669) 444-9171 Webinar ID: 832 9573 0901
City Council Meeting Agenda Page 2
Date: May 20, 2026
Whether attendance is in-person or remote, you will be given opportunities to provide public comment at the appropriate times throughout the meeting. The time limit is up to 3 minutes for an individual, or 5 minutes for someone who is representing a group of three or more, at the discretion of the Mayor. Please note that this is not a question-and-answer time, but simply a time to provide comments to the Council. 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.
How to comment via in-person attendance:
Please proceed to the public comment podium when the Mayor opens the item for public comment.
How to comment via Zoom Webinar:
Use the webinar attendee option to “raise hand” when the Mayor opens the item for public comment. The Clerk will unmute you when it is your turn. If you have joined via Zoom phone call, dial *9 or your phone to “raise your hand”, and the Clerk will unmute you when it is your turn.
CALL TO ORDER 6:00 PM
PLEDGE OF ALLEGIANCE and MOMENT OF SILENCE
ROLL CALL
SPECIAL SET MATTER
1. Mayor's Proclamation declaring May 17 to May 23 as Public Works Week
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 attending in person to make 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. Written public comment may be emailed to the City Clerk by 5:00 PM on the day of the meeting at [email protected].
City Council Meeting Agenda Page 3
Date: May 20, 2026
ALTERATIONS TO CONSENT AGENDA
Council can remove or add items to the Consent Agenda.
CONSENT AGENDA
The Consent Agenda is comprised of items which are intended to be non-controversial and are approved without discussion. Persons wishing to speak on any item may request the item be moved to the Regular Agenda by raising their hand to be recognized by the Mayor. An item will only be moved from the Consent Agenda to the Regular Agenda if a City Council Member requests it to be moved and a majority of the Council agrees.
1. Approve City Council minutes of 05-06-2026
2. Road closure for City's 4th of July Parade
3. Monthly Treasurer's Report - March 2026
4. Pinewood Estates Maintenance Assessment District Request for Engineer's Report
5. Skypark Open Space Maintenance Assessment District Request for Engineer's Report
6. Second reading and adoption of Ordinance No. 203, an ordinance of the City Council of the City of Scotts Valley amending Section 15.20.030 of Title 15, Chapter 15.20 of the Scotts Valley Municipal Code to establish a Fire Facilities Impact Fee and providing for its adoption by resolution of the Scotts Valley Fire District Board of Directors
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. Five-Year Capital Improvement Plan for Fiscal Year 2026-2027 to Fiscal Year 2030-2031
2. Presentation of the Proposed Fiscal Year 2026-27 Budget and Long-Range Financial Forecast
City Council Meeting Agenda Page 4
Date: May 20, 2026
3. Award Contract to VSS International, Inc. for the Scotts Valley Drive/Mt.
Hermon Road Improvements Project No. P26-002 and Authorize the City Manager to Execute a Contract in an Amount Not to Exceed $1,536,211.00
4. Future Council Agenda Items
CONVENE TO CLOSED SESSION
CLOSED SESSION SUBJECT(S)
1. Conference with legal counsel regarding liability claim Legal Authority: Government Code Section 54956.9
Name of Case: Stacy Murphy Claim
Staff Present: City Manager, City Attorney, Police Chief
2. Conference with legal counsel regarding real property negotiations Legal Authority: Government Code Section 54956.8
Location: 251 Kings Village Road, Scotts Valley, CA 95066 Staff Present: City Manager, City Attorney
RECONVENE TO OPEN SESSION
REPORT ON ACTION TAKEN DURING CLOSED SESSION
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) 440-5608 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: May 20, 2026
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) 440-5608 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.
PLEDGE OF ALLEGIANCE and MOMENT OF SILENCE
ROLL CALL
CITY STAFF MEMBERS PRESENT:
Mali LaGoe, City Manager
Kirsten Powell, City Attorney
Jayson Rutherford, Police Chief
Taylor Bateman, Community Development
Director
Rodolfo Onchi, Public Works Director
Stephanie Hill, Administrative Services Director
Lauren Lambert, Acting Administrative Secretary
ELECTED OFFICIALS
PRESENT:
Donna Lind, Mayor
Steve Clark, Vice Mayor
Krista Jett, Council Member
Derek Timm, Council Member
Greg Wimp, Council Member
SPECIAL SET MATTER
MINUTES
Meeting of the
Scotts Valley City Council
Date: May 6, 2026
Time: 6:00 PM
CONTACT
INFORMATION
MEETING LOCATION POSTING
City of Scotts Valley City Council Chambers The agenda was posted 1 Civic Center Drive 1 Civic Center Drive on 5-1-2026at City Hall, Scotts Valley, CA Scotts Valley, CA 95066 SV Senior Center, SV 95066 OR Public Works Building,
(831) 440-5600 Zoom Video Conference and on the Internet https://us02web.zoom.us/j/83295730901 at www.scottsvalley.gov.
CALL TO ORDER 6:00 PM
The City Council meeting was called to order at 6:00 PM.
1. Mayor's Proclamation for Peace Officers' Memorial Day, May 15, 2026 Mayor Lind presented the proclamation declaring May 15, 2026, as Peace Officers' Memorial Day. Police Chief Jayson Rutherford accepted the proclamation.
2. Mayor's Proclamation for Older Americans Month, May 2026
City Council Meeting Minutes
Date: May 6, 2026
COMMITTEE REPORTS
Mayor Lind presented the proclamation declaring May 2026 as Older Americans Month. Zachary Johnson, Administrative Services Officer for the Seniors Council, and Antonio Rivas, Seniors Council Board Member, accepted the proclamation.
CM Timm attended a Special Board Meeting for Central Coast Community Energy (3CE), and he noted that the battery rebate program is oversubscribed and will be discontinued. However, there will be other programs in the future.
CM Timm attended the Enhanced Infrastructure Financing District Public Financing Authority (EIFD PFA) meeting where they discussed the bylaws, the make-up of the board, and important projects.
CM Jett attended a Pathways to Possibility (P2P) meeting, as part of her involvement with the Youth Action Network, where the students did some creative activities. She congratulated the students for presenting at the previous Council meeting.
CM Jett, along with CM Wimp, attended a Safety Advisory Committee meeting where they discussed a variety of safety concerns throughout the City. They also looked ahead to the repaving project on Scotts Valley Drive this summer, and they heard a presentation from Director Onchi on the Safety Action Plan.
CM Jett attended a Town Center Subcommittee meeting, and she noted that the Request for Proposals window has closed and the proposals are currently under review. They discussed the process for independently reviewing the proposals and they will meet again next week to review the independent scores.
CM Jett attended a Childrens Network meeting where they heard a presentation from Santa Cruz County about child welfare.
CM Wimp attended the Safety Action Committee meeting which CM Jett reported on above.
VM Clark attended a Seniors Council meeting where they covered the quarterly Master Plan for Aging workgroup.
VM Clark and Mayor Lind attended a couple of Budget Subcommittee meetings.
Mayor Lind attended a Santa Cruz Metropolitan Transit District (METRO) Planning and Projects meeting where they worked on budget items and the potential tax measure, and she also attended a METRO Board of Directors meeting where they focused on budget items and the Reimagine METRO program.
Mayor Lind, as Chamber Ambassador, has been attending the Scotts Valley Chamber of Commerce Awards Gala planning meetings.
City Council Meeting Minutes
Date: May 6, 2026
CITY MANAGER REPORT
Mayor Lind gave welcome remarks at the Home Hardening and Wildfire Prevention Workshop, which was a collaboration between the City of Scotts Valley and Assemblymember Pellerin.
City Manager LaGoe noted that it is Public Service Recognition Week, and she thanked the staff, volunteers, commissions and the Council Members for their service to the Community.
City Manager LaGoe thanked Administrative Services Director Hill for filling in for her at the last Council meeting.
The Fiscal Year 26-27 budget is receiving finishing touches. The budget and the Capital Improvement Plan will be presented to the Council on May 20. She thanked the subcommittee members for their efforts during the long meetings.
The first Enhanced Infrastructure Financing District Public Financing Authority board meeting was held on May 5. The Board provided direction to staff to draft bylaws and the Infrastructure Financing Plan (IFP) which will be the guiding document for the financing district. The bylaws and the IFP will be presented at the next meeting, likely this summer, and in the meantime staff will work on setting up a website and doing some public outreach.
The Citizens Academy participants toured the Wastewater Treatment Plan this week and heard presentations from Public Works Director Onchi and City Attorney Powell.
The Local Agency Formation Commission (LAFCO) met today in the Council Chambers, and they took action to approve the Scotts Valley Service and Sphere of Influence Review.
The work on the Scotts Valley Drive sinkhole is complete and the remaining work that is being completed is a coordinated effort between the Scotts Valley Water District and Caltrans.
Governor Newsome recently declared a disaster for the storm event that caused the slide on Glenwood Drive. Staff has been working with CalOES on completing the funding request, and this disaster declaration should make it easier for the City to be reimbursed for the repair costs.
The Recreation team released a Senior Survey to gain input on what services they would like to see and also their opinion of the Senior Center. This survey went out in the May Senior Center Newsletter and QR codes are posted around town. Complete surveys can also be brought into the Senior Center or mailed in.
City Council Meeting Minutes
Date: May 6, 2026
PUBLIC COMMENT TIME
The City recently completed an employee engagement survey, and the results are being reviewed. Preliminarily, job satisfaction is high, employees feel supported, and employees plan to stay for several years.
The Police Department participated in the Race to Remember event last weekend.
The Police Department completed lockdown drills at Vine Hill Elementary School and at Scotts Valley Middle School last week.
The Police staff received a new motorcycle that was paid for with grant funding.
The Blue and Gold Dinner is next Friday, and big congratulations goes out to Officer Aaron Roberts for being awarded Police Employee of the Year.
The City received a $700K check from the federal government for the funding reimbursement for the Skypark big kids’ playground.
Reminder — follow the City on Social Media and sign up to receive the City's newsletter.
VM Clark attended the Rotary Club Student Awards, along with Mayor Lind and CM Wimp.
VM Clark, along with Mayor Lind and CM Wimp, attended the candlelight vigil for crime victims hosted by the District Attorney's office.
VM Clark attended the Reserve Officers, Volunteers, and Explorers Recognition Dinner.
VM Clark attended the first Food Truck Friday event of the season, which supports the Scotts Valley Educational Foundation (SVEF).
VM Clark met with the new Comcast Government Relations Representative.
Mayor Lind noted that the Never Forget Relay benefits the Fallen Officers Foundation.
CM Wimp reiterated that the student awards and the vigil were moving events.
CM Wimp attended the Leadership Santa Cruz session on Art and Culture Day.
Mayor Lind announced that the Chamber Gala is Friday, May 8, and the Blue and Gold Dinner is the following Friday.
City Council Meeting Minutes
Date: May 6, 2026
CONSENT AGENDA
PUBLIC HEARINGS
CM Timm welcomed Genelle Chetcuti to the Senior Center Board.
CM Timm asked if the Parks and Recreation Commission was advised about the Skypark Master Plan contract award, and City Manager LaGoe confirmed that they were notified.
M/S: Timm/Clark
To approve the Consent Agenda with no alterations.
Carried 5/0 (AYES: Lind, Clark, Jett, Timm, Wimp)
1. Approve City Council minutes of 04-15-2026
2. Contract Award for Development of Skypark Master Plan in Amount of $171,006
3. Ratify appointment of Scotts Valley Senior Center Advisory Commission Member
4. Approval of Wastewater Recycling Facility Membrane Bioreactor Preliminary Design (Phase 2) Agreement in amount of $628,406.90
5. Investment Report for the Quarter Ended March 31, 2026
6. Monthly Treasurer's Report - February 2026
7. Second reading and adoption of Ordinance No. 15.14 an amendment to the Business License Tax Ordinance to establish economic development event exemption and associated administrative fee
8. Second reading and adoption of Ordinance No. 22-200.4 approving Lexipol Policy 706 pertaining to the funding, acquisition, and use of military equipment as mandated by Assembly Bill 481
9. Second reading and adoption of Ordinance No. 202 designating no stopping, no parking areas
ALTERATIONS TO CONSENT AGENDA
City Council Meeting Minutes
Date: May 6, 2026
ALTERATIONS TO REGULAR AGENDA
1. Public Hearing to consider the adoption of Fire Facility Impact Fees to be collected by the City on behalf of the Scotts Valley Fire Protection District This item was presented by City Attorney Powell. Jeff McNeil, Battalion Chief of the Fire District, was in attendance to answer questions.
Mayor Lind opened the public hearing at 6:55 PM. There were no comments from the public, and the hearing was closed at 6:55 PM.
M/S: Clark/Timm
To Introduce Ordinance No. 203, amending Section 15.20.030 of the Municipal Code to establish a Fire Facility Impact Fee and waive the reading thereof.
Carried 5/0 (AYES: Lind, Clark, Jett, Timm, Wimp)
M/S: Clark/Wimp
To Adopt Resolution No. 2092, Adopting the Scotts Valley Fire District Fire Facilities Impact Fee Study and Impact Fees and authorize the City Manager to enter into that certain agreement with the Scotts Valley Fire Protection District regarding the collection of the impact fees.
Carried 5/0 (AYES: Lind, Clark, Jett, Timm, Wimp)
2. Public Hearing to consider Resolution 1198.81 adopting proposed Fiscal Year 2026-27 User Fee Schedule and Charges
Administrative Services Director Hill presented this item and answered questions from the Council.
Mayor Lind opened the public hearing at 7:01 PM. There were no comments from the public, and Mayor Lind closed the public hearing at 7:01 PM.
M/S: Timm/Jett
To adopt Resolution No. 1198.81 adopting the proposed FY2026/27 User Fee Schedule and Charges.
Carried 5/0 (AYES: Lind, Clark, Jett, Timm, Wimp)
3. Public Hearing for presentation of Vacancy Status and Recruitment Strategies per AB 2561
Administrative Services Director Hill presented this item.
Mayor Lind opened the public hearing at 7:03 PM. There were no comments from the public, and Mayor Lind closed the public hearing at 7:03 PM.
None.
City Council Meeting Minutes
Date: May 6, 2026
1. Adoption of the Santa Cruz County Safety Action Plan Public Works Director Onchi introduced this item and Zachary Ramalingam, the City's consultant from Kimley-Horn, presented this item.
M/S: Clark/Timm
To adopt Resolution No. 2090 authorizing the adoption of the Santa Cruz County Safety Action Plan, affirming the City’s commitment to improving roadway safety, and authorizing staff to use the Plan to guide future project prioritization and pursue state and federal grant funding opportunities.
Carried 5/0 (AYES: Lind, Clark, Jett, Timm, Wimp)
2. Santa Cruz METRO Transit District Presentation
METRO Chief Executive Officer and General Manager Corey Aldridge presented this item.
A community member inquired if there were any other available options for increasing revenues other than the 1/2 cent sales tax.
3. Future Council Agenda Items
None.
The meeting adjourned at 7:42 PM..
Attest:
Cathie Simonovich, City Clerk
Approved:
Donna Lind, Mayor
REGULAR AGENDA
ADJOURNMENT
AGENDA ITEM 2.
DATE: 5/20/2026
City of Scotts Valley
CITY COUNCIL STAFF REPORT
DATE: 5/20/2026
TO: Honorable Mayor and City Council
FROM: Scott Garner, Police Captain
APPROVED: Mali LaGoe, City Manager
SUBJECT: Road closure for City's 4th of July Parade
SUMMARY OF ISSUE
On July 4, 2026, 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, make a U-turn, and travel southbound to Civic Center Drive, make a U-turn, and return to Carbonero Way. The roadway will be closed in both directions in order to maximize pedestrian/audience safety, with police officers and volunteers manning various driveways and barricaded sections along the parade route.
The parade will begin at 11:00 AM. 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, etc.
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 appropriate teletypes will be sent to affected agencies (such as fire, ambulance, transit, sheriff, CHP, etc).
FISCAL IMPACT
Additional overtime will be necessary for police staff to work this event. Approximately eight police officers (in addition to the two already working patrol July 4th) will be required to work this event from 10:00 AM to 2:00 PM. The cost of $4,000 will be absorbed by the Police Department's overtime budget.
STAFF RECOMMENDATION
Staff recommends the City Council adopt Resolution No. 1851.13 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 4, 2026.
TABLE OF CONTENTS
1. Resolution No. 1851.13 July 4th Parade road closure 2026 (1)
RESOLUTION NO. 1851.13
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SCOTTS VALLEY TEMPORARILY CLOSING A PORTION OF
SCOTTS VALLEY DRIVE FOR THE CITY’S 4th OF JULY PARADE
WHEREAS, in celebration of Independence Day, the City has planned a parade to be held on July 4, 2026; and
WHEREAS, the parade route shall be along Scotts Valley Drive from Carbonero Way, travel northbound to El Pueblo Road, make a U-turn and then southbound to Civic Center Drive, make a U-turn 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 Civic Center Drive 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 Civic Center Drive to El Pueblo Road from 10:30 AM until 2:30 PM. on July 4, 2026. Such road closure shall be posted along the parade route by June 23, 2026.
The above and foregoing resolution was adopted at a duly held regular meeting of the City Council on the 20th of May 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Approved:
Donna Lind, Mayor
Attest:
Cathie Simonovich, City Clerk
AGENDA ITEM 3.
DATE: 5/20/2026
City of Scotts Valley
CITY COUNCIL STAFF REPORT
DATE: 5/20/2026
TO: Honorable Mayor and City Council
FROM: Stephanie Hill, Administrative Services Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Monthly Treasurer's Report - March 2026
SUMMARY OF ISSUE
Summary and Statutory Requirement
California Government Code Section 41004 requires the City Treasurer to submit a written report and accounting of all receipts, disbursements, and fund balances to the City Clerk and the legislative body. The attached Treasurer’s Report is prepared to fulfill this statutory requirement.
The attachment provides a summary of the City’s cash-based investment activity and financial position for March. This report reflects only cash receipts, disbursements, and fund balances for the period presented. It does not include internal accounting entries, accrual adjustments, depreciation, interfund reclassifications, or other year-end transactions that occur as part of the annual audit and close process.
Third Quarter Financial Interpretation, January Through March The information presented reflects financial activity through the third quarter of the fiscal year.
By this stage, the City’s financial trends are more clearly established, and staff gains stronger visibility into anticipated year-end outcomes.
Additional recurring revenues, including sales tax, transient occupancy tax, franchise fees, and intergovernmental revenues, continue to be realized during this period. The City also begins preparing for the second major property tax distribution, which typically occurs in April.
Expenditure activity at this point reflects the majority of regular operating costs for the fiscal year. Capital project activity, contract services, and seasonal programs become more visible in third-quarter reports.
Third-quarter data is a key indicator for:
• Preliminary year-end revenue projections
• Identification of emerging budget pressures
• Early baseline assumptions for the upcoming fiscal year budget, including labor, insurance, utilities, and contract cost trends
At this stage, financial variances are increasingly evaluated as either true structural changes or remaining timing differences.
How to Interpret the Treasurer’s Report
The Treasurer’s Report is a cash-based snapshot of the City’s financial activity. It reflects money received, money spent, and fund balances based on actual cash activity only. It does not include accruals or year-end accounting adjustments and should not be interpreted as the City’s final financial position.
Relationship to the Annual Audit and Financial Forecasting The Treasurer’s Report remains unaudited. Staff uses third-quarter information to refine yearend revenue and expenditure projections and to support upcoming budget development for the next fiscal year.
Ongoing Use Throughout the Fiscal Year
Third-quarter reporting plays a critical role in shaping forward-looking financial planning. While not final, these results offer a strong preview of anticipated year-end performance.
FISCAL IMPACT
There is no fiscal impact in receiving and filing the report.
STAFF RECOMMENDATION
Review and accept the Treasurer’s Report for the month ended March 31, 2026.
TABLE OF CONTENTS
1. 2026.03_Monthly Treasurer's Report
Cash and Investments Balance by Fund
In accordance with California Government Code Section 53601, the City utilizes a pooled cash and investment approach. This means that all available cash from various City funds is consolidated into a single investment pool for the purpose of maximizing interest earnings and ensuring effective cash management.
The pooled funds are invested in compliance with the City's adopted Investment Policy, which is guided by the primary objectives of safety, liquidity, and yield. Investments are made only in instruments permitted under Government Code §53601, including but not limited to:
• U.S. Treasury and agency securities
• Bank certificates of deposit
• Bank demand deposits
• Local Agency Investment Fund (LAIF)
• California Asset Management Program (CAMP)
• Municipal bonds
• Money market accounts
Each fund participating in the pool retains its individual equity interest and receives its proportionate share of investment earnings based on its average cash balance.
This pooling strategy provides economies of scale, increases investment diversification, and ensures that public funds are managed responsibly in accordance with state law and best practices for public sector finance.
As of March 31, 2026, the City’s unaudited cash and investments totaled $22,579,322. • A negative fund balance may occur temporarily when expenditures are incurred before related revenues are received, or when internal transfers from other funds are pending.
These timing differences are expected to be resolved in future periods as revenues are collected or transfers are completed.
Fund Category Cash Summary
General Fund $ 2,615,185
General Capital Improvement Fund $ (1,711,370)
Special Revenue Fund - Development Impact Fees $ 3,942,157 Special Revenue Fund $ 14,297,602
Debt Service $ 769,878
Wastewater Enterprise Fund $ 2,665,870
$ 22,579,322
Investment Type Cash Summary
Bank of America $ 382,831
LAIF $ 19,016,846
CAMP $ 545,844
WCCB $ 252,745
SCHWAB $ 2,381,056
$ 22,579,322
City’s Current Financial Position
In accordance with California government code section 53646 (b) (3), the City is financially positioned and able to meet its estimated expenditure requirements for the next six months.
The following Fund Balance schedule represents actual funding available for all funds at the end of the monthly period. This amount differs from the above Cash Summary schedule as assets and liabilities are components of the fund balance. As illustrated in the summary below, Total Cash is adjusted by the addition of Total Assets less the amount of Total Liabilities to arrive at the Ending Fund Balance – which represents the actual amount of funds available.
Working capital represents the difference between the Wastewater Fund’s current assets (such as cash, investments, and receivables) and its current liabilities (such as accounts payable and accrued expenses). It is a measure of the Fund’s short-term financial health and its ability to meet operating obligations as they come due.
Total Cash $ 22,579,322
Plus: Assets $ 5,877,830
Less: Liabilities $ (4,422,430)
Ending Fund Balance $ 24,034,722
Adjusting Cash to Ending Fund Balance
City of Scotts Valley
Changes in Total Fund Balance
For the month ended March 31, 2026
Equity
Fund Description
Beginning Fund
Balance
07/01/2025
Increase /
(Decrease) JulyFebruary Current Period
Revenue
Current Period
Expenditure
Fund Balance as
of 03/31/2026
General Fund
1 General Fund 3,258,974 (342,349) 817,954 (1,300,808) 2,433,771 6 Equipment Replacement Reserve 960,604 9,107 6,756 - 976,467 Recreation Funds (4, 28, 123) (92,151) (193,629) 24,846 (59,630) (412,472) Subtotal General Funds 4,035,277 (526,871) 849,556 (1,360,438) 2,997,767 General Capital Improvement Fund
150 Major Capital Projects 841,873 (2,407,346) - - (1,565,473) 151 Capital Outlay Projects 6,589 (235,446) - - (228,857) Subtotal Capital Improvement Fund 848,462 (2,642,792) - - (1,794,330) Special Revenue Fund - Development Impact Fees
7 Drainage Construction Impact Fees 143,947 8,796 1,795 (15) 154,523 8 Traffic Impact Mitigation Fees 1,176,836 48,295 14,188 (117) 1,239,202 9 Park & Recreation Facilities Impact Fees 1,786,209 79,435 22,260 (179) 1,887,725 21 General Facility Impact Fees 6,202 1,932 273 (1) 8,406 27 Police Facility Building Impact Fees 410,308 12,726 4,461 (40) 427,455 86 Library Impact Fees 213,991 8,382 2,491 (21) 224,843 Subtotal Special Revenue Funds - Development Impact Fees 3,737,494 159,566 45,468 (373) 3,942,155 Special Revenue Fund
2 Recycling/Environment 198,335 (66,248) 1,257 (6,937) 126,407 3 Gas Tax 1,173,854 224,242 39,733 (134) 1,437,695
5 SMIP Fees 5,722 (2,389) 76 - 3,409
17 Home Grant Program 511,064 2,316 1,074 (11) 514,443
19 Affordable Housing 4,546,602 86,779 33,935 (342) 4,666,974 24 Lennar Funds 621,150 - - - 621,150
31 STP Exchange Projects - - - - -
33 Tree Replacement 55,416 1,360 320 - 57,096
35 Green Building Funding 624,993 51,125 44 - 676,162
36 Disability Compliance 25,919 3,060 172 (17) 29,134
50 Pinewood Estates Maint. Dist. 222 767 - (10) 979
51 Mt. Hermon Traffic Mitigation 162,706 3,393 1,574 (16) 167,657 77 Skypark Landscape Maint. Dist. (3,988) 552 - (1,134) (4,570) 78 Skypark Landscape Maint. Dist. Insurance 562,869 11,738 5,444 (55) 579,996 88 Library Improvements (Measure S) 140 22,213 212 (2) 22,563 89 Library - Cty MOE Excess Distribution 647,062 11,508 6,239 (63) 664,746 115 Section 115 Set Aside - Pension 2,270,164 183,123 (71,823) (409) 2,381,055 155 Measure D Sales Tax for Transportation 1,032,320 176,266 50,356 (116) 1,258,826 156 SB-1 (RMRA) 1,149,812 221,843 38,451 (131) 1,409,975 200 Quimby Act 204,508 4,265 1,978 (20) 210,731
201 Measure Q - - 101,109 (3) 101,106
306 Supplemental Law Enforcement Services 156,585 107,641 17,994 (25) 282,195 313 Youth Focused Programs 51,173 (175) - (162) 50,836
317 Community And Economic Grants 472,689 9,857 4,572 (46) 487,072 Subtotal Special Revenue Funds - Other 14,469,318 1,053,236 232,717 (9,633) 15,745,638 Debt Service
66 Debt Service 1,069,878 (300,000) - - 769,878
Subtotal Debt Service Funds 1,069,878 (300,000) - - 769,878 Wastewater Enterprise Fund
10 Wastewater Operations 2,324,179 2,473,186 283,560 (186,545) 4,894,380 11 Tertiary Operating (262,632) (213,844) 58,134 (27,482) (445,824) 12 Waterwater Treatment Facility Fee (DIF) 436,775 34,280 15,373 (45) 486,383 14 Wastewater Capital Replacement Fund 237,817 (2,131,998) - (45,995) (1,940,176) Subtotal Wastewater Enterprise Funds 2,736,139 161,624 357,067 (260,067) 2,994,763 Total All Funds 26,896,567 (2,095,237) 1,484,808 (1,630,511) 24,655,870
City of Scotts Valley
Monthly Wire Payments
MARCH 2026
Date Vendor Description Amount
3/9/2026 CalPERS CalPERS Pension 02/20 PR $ 61,728.25
3/6/2026 Payroll Payroll 03/06/2026 $ 305,243.31
3/6/2026 SVPOA Payroll Deductions $ 209.00
3/6/2026 PORAC Payroll Deductions $ 573.75
3/6/2026 SEIU Payroll Deductions $ 561.42
3/6/2026 COPE Payroll Deductions $ 10.00
3/6/2026 ICMA Payroll Deductions $ 13,221.41
3/6/2026 Health Equity (FSA) Payroll Deductions $ 1,312.51 3/6/2026 Fallen Officer Payroll Deductions $ 5.00
3/13/2026 CalPERS CalPERS Pension 03/06 PR $ 63,928.57
3/16/2026 Bank of America Bank Fees $ 1,087.13
3/20/2026 Payroll Payroll 03/20/26 $ 300,691.18
3/20/2026 PARS Payroll Deductions $ 189.05
3/20/2026 SVPOA Payroll Deductions $ 209.00
3/20/2026 LEGAL Payroll Deductions $ 1,000.00
3/20/2026 COPE Payroll Deductions $ 10.00
3/20/2026 ICMA Payroll Deductions $ 13,323.64
3/20/2026 Health Equity (FSA) Payroll Deductions $ 1,312.51 3/20/2026 Fallen Officer Payroll Deductions $ 5.00
3/30/2026 BNY Lease Revenue Refunding Bonds 19 $ 80,275.00 3/30/2026 BNY Lease Revenue Refunding Bonds 19B $ 16,714.35 3/26/2026 CalPERS CalPERS UAL $ 188,768.92
3/31/2026 Retirees Retiree Medical April $ 46,226.47
$ 1,096,605.47
Check Number Check Date Vendor Name Check Amount
135683 03/06/2026 ADAMSON POLICE PRODUCTS 307.92 $
135684 03/06/2026 AMAZON CAPITAL SERVICES 580.75 $
135685 03/06/2026 ASSOCIATED SERVICES CO. 140.05 $
135686 03/06/2026 AT&T 287.87 $
135687 03/06/2026 COMCAST 768.57 $
135688 03/06/2026 COMCAST 1,050.55 $
135689 03/06/2026 CRYSTAL SPRINGS WATER CO 282.25 $
135690 03/06/2026 LLOYD'S TIRE SERVICE INC. 482.64 $
135691 03/06/2026 MP EXPRESS, INC. 269.13 $
135692 03/06/2026 NATIONAL COMTEL NETWORK INC. 9.26 $
135693 03/06/2026 PHILLIP D NEUMAN 29,800.22 $
135694 03/06/2026 PHOENIX GROUP 247.08 $
135695 03/06/2026 RALEY'S 37.85 $
135696 03/06/2026 SCARBOROUGH LUMBER 102.35 $
135697 03/06/2026 STANDARD INSURANCE COMPANY 991.62 $
135698 03/06/2026 STEVEN LOPEZ 500.00 $
135699 03/06/2026 URETSKY SECURITY 9,810.69 $
135700 03/06/2026 WAGE WORKS 125.00 $
135701 03/06/2026 WIZIX TECHNOLOGY GROUP, INC 328.70 $
135702 03/13/2026 A TOOL SHED, INC. 375.69 $
135703 03/13/2026 ACCENT CLEAN & SWEEP INC 5,478.00 $
135704 03/13/2026 ACE PORTABLE SERVICES 2,724.48 $
135705 03/13/2026 ALVAREZ IND INC CLEAN BLDG 295.00 $
135706 03/13/2026 AMAZON CAPITAL SERVICES 438.20 $
135707 03/13/2026 AT&T 8.91 $
135708 03/13/2026 BATTERIES + BULBS #314 2,909.09 $
135709 03/13/2026 BRASS KEY LOCKSMITH 12.40 $
135710 03/13/2026 CHRIS GALLI 230.00 $
135711 03/13/2026 COUNTY OF SANTA CRUZ 1,216.80 $
135712 03/13/2026 DAWN BANKS 190.80 $
135713 03/13/2026 DOCTORS ON DUTY 150.00 $
135714 03/13/2026 ENVIRONMENTAL INNOVATIONS 8,373.05 $
135715 03/13/2026 GRAINGER 931.04 $
135716 03/13/2026 HERC RENTALS 2,626.11 $
135717 03/13/2026 HOSE SHOP 45.99 $
135718 03/13/2026 JAYSON RUTHERFORD 215.00 $
135719 03/13/2026 K & D LANDSCAPING, INC. 3,711.00 $
135720 03/13/2026 KENNEDY-JENKS CONSULTANTS 45,994.51 $ 135721 03/13/2026 LT MUNICIPAL CONSULTANTS 1,910.00 $
135722 03/13/2026 MARY LOUISE DEFALCO 129.00 $
135723 03/13/2026 MEREDITH ROBERTS 215.00 $
135724 03/13/2026 MISSION UNIFORM SERVICE 295.70 $
135725 03/13/2026 MONTEREY BAY ANALYTICAL SVCS 823.00 $
Check Number Check Date Vendor Name Check Amount
135726 03/13/2026 MP EXPRESS, INC. 615.59 $
135727 03/13/2026 NATIONAL COMTEL NETWORK INC. 12.54 $
135728 03/13/2026 O'REILLY AUTOMOTIVE,INC 49.36 $
135729 03/13/2026 OLIVE SPRINGS QUARRY INC. 460.03 $
135730 03/13/2026 OPERATIONAL TECHNICAL SERVICES 9,444.48 $ 135731 03/13/2026 PERALTA'S MACHINE SHOP 3,719.38 $
135732 03/13/2026 PETERSON POWER SYSTEMS, INC. 8,362.90 $ 135733 03/13/2026 PHILLIP D NEUMAN 6,164.04 $
135734 03/13/2026 PURETEC INDUSTRIAL WATER 59.66 $
135735 03/13/2026 ROSS RECREATION EQUIPMENT INC. 66.77 $ 135736 03/13/2026 SARAH ORRE 640.80 $
135737 03/13/2026 SCARBOROUGH LUMBER 1,130.65 $
135738 03/13/2026 SCOTTS VALLEY SPRINKLER 840.49 $
135739 03/13/2026 SHARRON BARTH 90.00 $
135740 03/13/2026 SOUTHLAND INDUSTRIES 9,780.00 $
135741 03/13/2026 STATE WATER RESOURCES CONTROL 228.00 $ 135742 03/13/2026 STERICYCLE INC 266.99 $
135743 03/13/2026 STRATEGIC GOVERNMENT RESOURCES 4,930.00 $ 135744 03/13/2026 SYCAL ENGINEERING INC 1,625.88 $
135745 03/13/2026 THE PIED PIPER INC. 226.00 $
135746 03/13/2026 THOMSON REUTERS-WEST 416.30 $
135747 03/13/2026 TYLER GREEN 500.00 $
135748 03/13/2026 WEX BANK 8,846.54 $
135749 03/13/2026 YOGA FOR ALL MOVEMENT 84.00 $
135750 03/24/2026 ACC BUSINESS 1,838.87 $
135751 03/24/2026 AFLAC-FLEX ONE 883.70 $
135752 03/24/2026 ALVAREZ IND INC CLEAN BLDG 451.00 $
135753 03/24/2026 AT&T 56.24 $
135754 03/24/2026 AT&T MOBILITY 1,743.52 $
135755 03/24/2026 B & B SMALL ENGINE 169.36 $
135756 03/24/2026 BLUETRITON BRANDS INC 80.53 $
135757 03/24/2026 CENTRAL HOME SUPPLY 6,285.72 $
135758 03/24/2026 COMCAST 777.68 $
135759 03/24/2026 CSG CONSULTANTS, INC 240.00 $
135760 03/24/2026 CSG CONSULTANTS, INC 742.50 $
135761 03/24/2026 DASH MEDICAL GLOVES 147.36 $
135762 03/24/2026 DIXON & SON TIRE 907.42 $
135763 03/24/2026 DUNCAN AUTO TECH 2,475.22 $
135764 03/24/2026 ENTERPRISE FM TRUST 13,137.52 $
135765 03/24/2026 GOOD CITY COMPANY 5,780.00 $
135766 03/24/2026 INTERWEST CONSULTING GROUP 1,328.25 $ 135767 03/24/2026 INTERWEST CONSULTING GROUP 1,270.51 $ 135768 03/24/2026 KOSMONT COMPANIES, INC 2,227.50 $
Check Number Check Date Vendor Name Check Amount
135769 03/24/2026 LIEBERT CASSIDY WHITMORE 5,262.00 $
135770 03/24/2026 LOGAN & POWELL, LLP 17,414.77 $
135771 03/24/2026 M-GROUP 20,034.00 $
135772 03/24/2026 MISSION UNIFORM SERVICE 392.75 $
135773 03/24/2026 MONTEREY BAY ANALYTICAL SVCS 428.00 $ 135774 03/24/2026 MONTEREY REGIONAL 10,146.00 $
135775 03/24/2026 OPERATIONAL TECHNICAL SERVICES 4,574.67 $ 135776 03/24/2026 PACIFIC GAS & ELECTRIC CO 69,969.57 $ 135777 03/24/2026 PETERSON POWER SYSTEMS, INC. 2,591.58 $ 135778 03/24/2026 PHILLIP D NEUMAN 8,745.58 $
135779 03/24/2026 PITNEY BOWES GLOBAL 585.15 $
135780 03/24/2026 RIVERSIDE LIGHTING INC 63.17 $
135781 03/24/2026 S.V. WATER DISTRICT - BULK 123.25 $
135782 03/24/2026 SANTA CRUZ CO ENVIRONMENTAL 767.25 $
135783 03/24/2026 SCARBOROUGH LUMBER 80.82 $
135784 03/24/2026 SCOTTS VALLEY CAR WASH 50.96 $
135785 03/24/2026 TALLEN CALIFORNIA, LLC 3,500.00 $
135786 03/24/2026 THE PIED PIPER INC. 70.50 $
135787 03/24/2026 VISIT SANTA CRUZ COUNTY 18,059.88 $
135788 03/24/2026 WEBER,HAYES, & ASSOCIATES 918.75 $
$ 388,303.22
AGENDA ITEM 4.
DATE: 5/20/2026
City of Scotts Valley
CITY COUNCIL STAFF REPORT
DATE: 5/20/2026
TO: Honorable Mayor and City Council
FROM: Rodolfo Onchi, Public Works Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Pinewood Estates Maintenance Assessment District Request for Engineer's Report
SUMMARY OF ISSUE
On July 15, 1987, the City Council adopted Resolution No. 1213 establishing the Pinewood Estates Maintenance Assessment District pursuant to the Landscaping and Lighting Act of 1972. District improvements generally include ornamental landscaping, irrigation equipment, signage, fencing, and storm detention ponds. These improvements were dedicated to the City by the developer of the Pinewood Estates subdivision and are located within the Lockewood Lane right-of-way and subdivision landscaping easements.
The District consists of twenty-five Pinewood Estates homeowners who are assessed annually for the maintenance, repair, and operation of the district improvements.
Each year, the District special fund is depleted through maintenance activities, requiring preparation of an Annual Engineer’s Report. The report includes a description of the improvements and proposed maintenance activities, an estimated budget, and the annual benefit assessments for the district. In accordance with Article 4, Chapter 1, Part 2 of the Landscaping and Lighting Act of 1972, the City Council must adopt a resolution directing the City’s engineer to prepare and file the report with the City Clerk for Fiscal Year 2026–2027.
Following completion of the Engineer’s Report, the City Council will consider the report and adopt a resolution of intention to levy the annual assessments, which is anticipated to occur at the June 3, 2026, City Council meeting. A public hearing to consider the proposed assessments and any protests is scheduled for June 17, 2026. In accordance with state law, all 25 property owners will be notified by mail prior to the public hearing.
FISCAL IMPACT
There is no fiscal impact associated with this action.
STAFF RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. 1213.40 directing the City’s engineer to prepare and file the Annual Engineer’s Report with the City Clerk in accordance with the Landscaping and Lighting Act of 1972.
TABLE OF CONTENTS
1. Resolution No. 1213.40_Prepare Engineer's Report for Pinewood Estates Assessment
RESOLUTION NO. 1213.40
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY DIRECTING THE PREPARATION AND FILING OF THE ANNUAL ENGINEER’S
REPORT FOR THE PINEWOOD ESTATES MAINTENANCE ASSESSMENT DISTRICT FOR FISCAL YEAR 2026–2027
WHEREAS, on July 15, 1987, the City Council adopted Resolution No. 1213 establishing the Pinewood Estates Maintenance Assessment District pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code; and
WHEREAS, the improvements within the District generally consist of ornamental landscaping, irrigation equipment, signage, fencing, and storm detention ponds located within the Lockewood Lane right-of-way and subdivision landscaping easements; and WHEREAS, the Landscaping and Lighting Act of 1972 requires the preparation and filing of an Annual Engineer’s Report for each fiscal year in which assessments are to be levied; and
WHEREAS, the Annual Engineer’s Report includes a description of the improvements and proposed maintenance activities, estimated costs, and the proposed assessments for Fiscal Year 2026–2027.
NOW, THEREFORE, BE IT RESOLVED AND ORDERED as follows:
1. The City Council hereby orders the preparation and filing of the Annual Engineer’s Report for the Pinewood Estates Maintenance Assessment District for Fiscal Year 2026–2027 pursuant to Article 4, Chapter 1, Part 2 of the Landscaping and Lighting Act of 1972.
2. The City’s engineer is hereby directed to prepare and file the Annual Engineer’s Report with the City Clerk in accordance with the requirements of the Landscaping and Lighting Act of 1972.
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 20th day of May 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Approved:
Donna Lind, Mayor
Attest:
Cathie Simonovich, City Clerk
AGENDA ITEM 5.
DATE: 5/20/2026
City of Scotts Valley
CITY COUNCIL STAFF REPORT
DATE: 5/20/2026
TO: Honorable Mayor and City Council
FROM: Rodolfo Onchi, Public Works Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Skypark Open Space Maintenance Assessment District Request for Engineer's Report
SUMMARY OF ISSUE
In 1995, the City Council formed the Skypark Open Space Maintenance Assessment District No. 1 pursuant to the Landscaping and Lighting Act of 1972 and authorized the levy and collection of annual assessments to maintain the district. The district includes a linear park, two greenbelt areas, and a self-insurance reserve fund established for potential slope failure within the assessment area. The assessment district must be renewed annually.
Each year, an Annual Engineer’s Report is prepared and filed in accordance with Article 4, Chapter 1, Part 2 of the Landscaping and Lighting Act of 1972. The report includes a description of the improvements and maintenance activities, estimated costs, and the proposed benefit assessments for Fiscal Year 2026–2027. The City Council must adopt a resolution directing the City’s engineer to prepare and file the report with the City Clerk.
Assessment revenue funds landscape maintenance services including cultivation, trimming, spraying, fertilization, disease treatment, and removal of debris and green waste. Revenue also supports the repair, reconstruction, removal, and replacement of infrastructure associated with maintaining the open space areas, including irrigation systems, lighting, curbs, gutters, sidewalks, and utilities such as water and electricity. In addition, the assessment provides for reserve funding in the event of slope failure within the district.
Following completion of the Engineer’s Report, the City Council will consider the report and adopt a resolution of intention to levy the annual assessments, which is anticipated to occur at the June 3, 2026, City Council meeting. A public hearing to consider the proposed assessments and any protests is scheduled for June 17, 2026. In accordance with state law, all 190 property owners will be notified by mail prior to the public hearing.
FISCAL IMPACT
There is no fiscal impact associated with this action.
STAFF RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. 1555-SP-038 directing the City’s engineer to prepare and file the Annual Engineer’s Report with the City Clerk in accordance with the Landscaping and Lighting Act of 1972.
TABLE OF CONTENTS
1. Resolution No. 1555-SP-038_Prepare Engineer's Report for Skypark Assessment
RESOLUTION NO. 1555-SP-038
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY DIRECTING THE PREPARATION AND FILING OF THE ANNUAL ENGINEER’S
REPORT FOR THE SKYPARK OPEN SPACE MAINTENANCE ASSESSMENT DISTRICT NO. 1 FOR FISCAL YEAR 2026–2027
WHEREAS, in 1995, the City Council formed the Skypark Open Space Maintenance Assessment District No. 1 pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code; and WHEREAS, the District includes a linear park, two greenbelt areas, landscaping, irrigation and related infrastructure, and a reserve fund established for potential slope failure within the assessment area; and
WHEREAS, the Landscaping and Lighting Act of 1972 requires the preparation and filing of an Annual Engineer’s Report for each fiscal year in which assessments are to be levied; and
WHEREAS, the Annual Engineer’s Report includes a description of the improvements and proposed maintenance activities, estimated costs, and the proposed assessments for Fiscal Year 2026–2027.
NOW, THEREFORE, BE IT RESOLVED AND ORDERED as follows:
1. The City Council hereby orders the preparation and filing of the Annual Engineer’s Report for the Skypark Open Space Maintenance Assessment District No. 1 for Fiscal Year 2026–2027 pursuant to Article 4, Chapter 1, Part 2 of the Landscaping and Lighting Act of 1972.
2. The City’s engineer is hereby directed to prepare and file the Annual Engineer’s Report with the City Clerk in accordance with the requirements of the Landscaping and Lighting Act of 1972.
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 20th day of May 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Approved:
Donna Lind, Mayor
Attest:
Cathie Simonovich, City Clerk
AGENDA ITEM 6.
DATE: 5/20/2026
City of Scotts Valley
CITY COUNCIL STAFF REPORT
DATE: 5/20/2026
TO: Honorable Mayor and City Council
FROM: Kirsten Powell, City Attorney
APPROVED: Mali LaGoe, City Manager
SUBJECT: Second reading and adoption of Ordinance No. 203, an ordinance of the City Council of the City of Scotts Valley amending Section
15.20.030 of Title 15, Chapter 15.20 of the Scotts Valley Municipal Code to establish a Fire Facilities Impact Fee and providing for its adoption by resolution of the Scotts Valley Fire District Board of Directors
SUMMARY OF ISSUE
On May 6, 2026, the City Council introduced Ordinance No. 203 which amended Scotts Valley Municipal Code Section 15.20.030 to establish a Fire Facilities Impact Fee ("Impact Fee").
The establishment of the Impact Fee was requested by the Scotts Valley Fire Protection District ("District") in order to fund fire facilities necessitated by growth in the City. The District is unable to collect impact fees but cities are able to do so on behalf of the District.
In addition to introducing the ordinance, the City Council authorized the City Manager to enter into a Memorandum of Understanding with the District which details the process by which the City will collect and disperse the Impact Fee to the District, compensates the City for the time associated with the collection and dispersement and requires the District to indemnify the City for the collection of the Impact Fee.
This evening, the City Council is being asked to adopt the ordinance. If adopted, it will be effective in 30 days, at which time the City will begin collecting the Impact Fee for new development projects in the City.
FISCAL IMPACT
The adoption of the ordinance and the collection of the fees on behalf of the District will result in a recovery of 5% of the fees collected by the City. At this time, it is difficult to determine the exact amount of fees that will be collected as it is based on development projects.
STAFF RECOMMENDATION
Staff recommends Council adopts Ordinance No. 203 Fire Facility Impact Fees.
TABLE OF CONTENTS
1. Ordinance No. 203 Fire Impact Fees
ORDINANCE NO. 203
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY AMENDING SECTION 15.20.030 OF TITLE 15, CHAPTER 15.20 OF THE SCOTTS VALLEY MUNICIPAL CODE
TO ESTABLISH A FIRE FACILITIES IMPACT FEE AND PROVIDING FOR ITS ADOPTION BY
RESOLUTION OF THE SCOTTS VALLEY FIRE DISTRICT BOARD OF DIRECTORS WHEREAS, this Ordinance sets forth the requirements for establishing and administering a development impact fee program imposed by the City of Scotts Valley ("City") on behalf of the Scotts Valley Fire District ("District"); and WHEREAS, new development within the boundaries of the Scotts Valley Fire Protection District (“District”) impacts and necessitates the need and demand for fire protection services and other emergency services, including, but not limited to, the need for certain District capital facilities and other District capital assets; and WHEREAS, wildfires are a frequent natural disaster in California, causing significant harm and loss to individuals, communities, property, and great swaths of natural landscape, and the frequency, duration and size of wildfires have increased over the last several decades; and
WHEREAS, as climate change extends and exacerbates fire risk in California, there are areas within the District that are at relatively high risk for fire and according to the Santa Cruz County Climate Vulnerability Technical Compendium (January 2025), the decadal probability of a wildfire is projected to increase to the 50th and 90th percentiles for 2040s and 2070s, respectively, compared to historical baseline for emissions scenarios; and WHEREAS, on June 11, 2025, the District adopted the Scotts Valley Fire District Hazard Map Ordinance No. 2025-1, establishing fire hazard severity zones (FHSZ) within the District, including FHSZs high and moderate fire hazard zones, thereby increasing the importance of fire protection services and capital facilities; and
WHEREAS, the District has prepared the required documentation to comply with the California Mitigation Fee Act (Government Code §§66000- 66025) including a Fire Facilities Impact Fee Study dated July 22, 2025 (“Nexus Study”) which established the legal and policy basis to support a new Impact Fee program within the District; and
WHEREAS, there is a reasonable relationship between the fees used and the types of development projects on which the fee is imposed for the reasons set forth in the District's resolution and nexus study attached to this Ordinance; and
WHEREAS, there is a reasonable relationship between the need for the Public Facilities, including Fire Facilities, Equipment, and Apparatus, and the development projects on which the fee is imposed for the reasons set forth in the District's resolution and nexus study attached to this Ordinance; and
WHEREAS, on November 12, 2025, after considering the Nexus Study and testimony received at a public hearing, the Board of Directors of the District established a Fire Facility Fee and made the following findings pursuant to Government Code § 66001:
1. The broad purpose of the Impact Fees is to protect public health, safety, and general welfare by providing adequate District facilities. The specific purpose of the Impact Fees is to fund the acquisition or construction of fire protection and emergency fire protection services and other emergency services, including, but not limited to, the need for certain capital facilities and other capital assets (collectively, “Fire Protection Facilities and Assets”) provided by the District attributable to new development in the District.
2. The uses of the Impact Fees will be used to fund the District’s Fire Protection Facilities and Assets to serve new development. The specific Fire Protection Facilities and Assets are further set forth in the District’s Capital Improvement Plan (“CIP”), which was approved by the Board on November 12, 2025. The CIP indicates the approximate location, size, time of availability, and estimates of costs for all Fire Protection Facilities and Assets that may be funded with Impact Fees.
3. The uses of the Impact Fees are reasonably related to the types of development projects for which the Impact Fees are imposed, in that the Impact Fees will be used to expand the District’s Fire Protection Facilities and Assets to meet the additional demand generated by new development.
4. The Impact Fees bear a reasonable relationship to the need for Fire Protection Facilities and Assets and the type of development on which the Impact Fees are imposed.
The Nexus Study demonstrates that there is a reasonable relationship between the amount of the Impact Fees and the cost of the Fire Protection Facilities and Assets attributable to the new development within the District’s boundaries.
WHEREAS, the District requests the establishment and administration of a development impact fee because the District lacks statutory authority to impose development impact mitigation fees independently, and the District has prepared all of the supporting documentation to support the findings required to establish the fee, collect the fee and comply with all necessary reporting and accounting procedures for the fee.
NOW, THEREFORE, the City Council of the City of Scotts Valley hereby ordains as follows:
Section 1. Recitals. The foregoing recitals are true and correct and are incorporated into the findings herein.
Section 2. Section 15.20.030 of Chapter 15.20 of Title 15 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“SECTION 15.20.030. The following development impact fees are hereby established and imposed on the issuance of all building permits for development within the city to finance the cost of the following categories of public facilities and improvements required by new development:
A. General Facilities and Equipment. A development impact fee is hereby established for general facilities and equipment.
B. Wastewater Treatment Facilities. A development impact fee is hereby established for wastewater treatment facilities.
C. Law Enforcement Facilities, Equipment and Training. A development impact fee is hereby established for law enforcement facilities, equipment and training.
D. Storm Drainage Facilities. A development impact fee is hereby established for storm drainage facilities.
E. Park and Recreation Facilities. A development impact fee is hereby established for park and recreation facilities.
F. Library Facilities. A development impact fee is hereby established for library facilities.
G. Streets and Thoroughfares. A development impact fee is hereby established for streets and thoroughfares.
H. Administrative Overhead. A development impact fee is hereby established for administrative overhead to cover the cost of general administration of this chapter and any resolution adopted pursuant hereto, performance of accounting tasks associated herewith, supervision and handling of funds, preparation and/or updating of master facilities plans and/or capital financing plans, and the like. This fee shall be set as a percentage of the fees set forth in subsections A through G, above, which are collected pursuant to this chapter. This fee does not relate to and is not designed to cover administrative costs incurred by the city in the case of any specific public facility constructed with the fees referenced in subsections A through G, above, since such project specific administrative costs are included in and shall be recovered from such fees.
I. Fire Facilities Impact Fee. A development impact fee is hereby established for fire facilities.
The specific amount of the fee shall be established by resolution of the Scotts Valley Fire District or its successor.
Except as provided above, the city council shall, by council resolution, set forth the specific amount of the fees, describe the benefit and impact area on which the fees are imposed, list the specific public improvements to be financed and describe the estimated cost of these facilities.” Section 3. CEQA COMPLIANCE. The proposed amendments are exempt pursuant to the CEQA Guidelines Section 15061(b)(3), which provides that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The establishment of the Fire Facilities Fee does not have the potential for causing a significant effect on the environment.
Section 4. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase or portion of this Ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.
Section 5. To the extent the provisions of the Scotts Valley Municipal Code as amended by this Ordinance are substantially the same as the provisions of that Code as they read immediately prior to the adoption of this Ordinance, then those provisions shall be construed as continuations of the earlier provisions and not as new enactments.
Section 6. EFFECTIVE DATE. This ordinance shall be in full force and effect thirty (30) days from and after the date of its adoption.
Section 7. PUBLICATION. The City Clerk shall certify as to the adoption of this Ordinance and shall cause a summary thereof to be published within fifteen (15) days of adoption and shall post a certified copy of this Ordinance, including the vote for and against same, in the Office of the City Clerk, in accordance with Government Code Section 36933.
This Ordinance was introduced on the 6th date of May, 2026, and passed and adopted on the 20th day of May, 2026, at a duly held meeting of the City Council of the City of Scotts Valley by the following votes:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED: ______________________________
Donna Lind, Mayor
ATTEST:
_________________________________
Cathie Simonovich, City Clerk
APPROVED AS TO FORM:
_________________________________
Kirsten Powell, City Attorney
AGENDA ITEM 1.
DATE: 5/20/2026
City of Scotts Valley
CITY COUNCIL STAFF REPORT
DATE: 5/20/2026
TO: Honorable Mayor and City Council
FROM: Rodolfo Onchi, Public Works Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Five-Year Capital Improvement Plan for Fiscal Year 2026-2027 to Fiscal Year 2030-2031
SUMMARY OF ISSUE
BACKGROUND
The Capital Improvement Plan (CIP) is the City’s multi-year planning document for major infrastructure, facility, equipment, and capital outlay needs. The CIP is updated annually and is used to guide project planning, funding decisions, and implementation priorities. The full project list is included as Attachment 1.
The proposed CIP continues to organize projects into two categories: major capital projects, which generally include larger infrastructure and facility projects with longer useful lives; and capital outlay projects, which generally include equipment, vehicle replacements, deferred maintenance, and smaller facility improvements.
PROJECT PRIORITIZATION
Projects are prioritized to help guide funding and scheduling decisions within available resources. The priority categories are intended to distinguish projects that are critical to health, safety, regulatory compliance, or infrastructure reliability from projects that are important but may be scheduled over a longer period as funding becomes available.
Priority A: Projects that are essential or critical to health and safety, legal or regulatory requirements, or the protection of existing public infrastructure.
Priority B: Projects that are important to maintain service levels, safety, infrastructure condition, or quality of life, but are not considered immediately critical.
Priority C: Projects that are desirable or may be deferred until higher-priority projects are funded or additional resources become available.
DISCUSSION
The proposed FY 2026-27 CIP totals $9,426,650 citywide. This includes $8,536,150 in major capital projects and $890,500 in capital outlay projects. The plan also identifies anticipated
projects and funding needs through FY 2030-31.
The proposed CIP focuses on maintaining and improving core public infrastructure, advancing projects that support Council priorities, and identifying future funding needs. Key areas include:
• Wastewater system improvements, including treatment plant reliability, collection system upgrades, lift station improvements, the Wastewater Master Plan, and continued work toward the MBR upgrade.
• Transportation improvements, including annual street resurfacing, Scotts Valley Drive and Mount Hermon Road corridor improvements, Granite Creek Overpass work, pedestrian safety lighting, and traffic signal upgrades.
• Storm drain improvements, including culvert and drainage repairs, trash capture improvements, and stormwater master planning.
• Parks and facility improvements, including the Shugart Park buildout, public works facility planning, Siltanen improvements, and public safety radio equipment upgrades.
The attached CIP table provides the detailed project list, estimated costs, funding sources, anticipated fiscal year, and priority category for each project. Several projects remain partially or fully unfunded in later years. Staff will continue to evaluate grant opportunities, restricted funding sources, development impact fees, and other available funding to advance projects as resources become available.
PLANNING COMMISSION REVIEW
The Planning Commission reviewed the proposed CIP on May 14, 2026, and found the FY 2026-27 portion of the CIP consistent with the Scotts Valley General Plan. The CIP will be incorporated into the FY 2026-27 budget for City Council consideration on June 3, 2026.
FISCAL IMPACT
There is no direct fiscal impact associated with receiving this report and presentation. Project funding will be appropriated through the FY 2026-27 budget adoption process or through separate Council actions, as needed. The proposed FY 2026-27 CIP totals $9,426,650 from a combination of restricted funds, grants, enterprise funds, development impact fees, and other identified sources.
STAFF RECOMMENDATION
Staff recommends that the City Council receive the presentation on the proposed Five-Year Capital Improvement Plan for Fiscal Year 2026-27 through Fiscal Year 2030-31, provide direction as appropriate, and direct staff to incorporate the Capital Improvement Plan into the proposed FY 2026-27 budget for final consideration.
TABLE OF CONTENTS
1. FY2627 CIP Budget Request Final
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AGENDA ITEM 2.
DATE: 5/20/2026
City of Scotts Valley
CITY COUNCIL STAFF REPORT
DATE: 5/20/2026
TO: Honorable Mayor and City Council
FROM: Stephanie Hill, Administrative Services Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Presentation of the Proposed Fiscal Year 2026-27 Budget and LongRange Financial Forecast
SUMMARY OF ISSUE
Budget Document and Overview
The FY 2026–27 Preliminary Budget is presented for the City Council’s consideration and includes a long-range financial forecast and detailed analysis of the General Fund, the City’s primary operating fund. The City’s budget continues to be maintained through the OpenGov platform, providing residents, elected officials, and stakeholders with interactive online access to current and historical budget information, including revenues, expenditures, and capital projects. This platform remains an important component of the City’s commitment to transparency and public engagement.
To assist with development of the FY 2026–27 Preliminary Budget, the City Council provided policy and budget direction through several actions during the fiscal year, including:
• FY 2025–26 Mid-Year Budget Review: City Council reviewed and approved mid-year budget amendments and updated financial forecasts.
• Strategic Planning Goals: City Council reviewed and reaffirmed the City’s Strategic Goals, which were incorporated into the development of the FY 2026–27 Preliminary Budget.
• Guiding Budget Principles: City Council adopted annual Guiding Budget Principles to establish fiscal policy direction and long-term financial priorities. • Capital Improvement Program (CIP): The Planning Commission reviewed the proposed CIP for consistency with the General Plan, and City Council reviews the proposed FY 2026–27 CIP as part of the budget process.
• City Council Budget Subcommittee: Staff met regularly with the Budget Subcommittee, consisting of the Mayor and Vice Mayor, to review revenues, expenditures, forecasts, staffing, capital projects, and long-range financial planning assumptions.
The FY 2026–27 Preliminary Budget reflects cautious revenue assumptions as the City and broader region continue to navigate inflationary pressures, economic uncertainty, and slowing revenue growth. Total revenues are projected at approximately $32.8 million, including approximately $16.6 million in tax revenues generated primarily through sales tax, property tax, Measure Z, and Measure X revenues. Total expenditures are projected at approximately $38.0 million, including $27.3 million in operating expenditures, approximately $9.4 million in capital improvement projects and the balance in special revenue funds.
The proposed budget includes the planned use of approximately $0.9 million in General Fund reserves, along with approximately $4.3 million from other funds to support capital improvements, recreation programming, and other restricted activities. As in prior years, actual year-end impacts are expected to be lower than budget due to project timing, staffing vacancies, and operational savings realized throughout the fiscal year.
The proposed FY 2026–27 budget continues the City’s emphasis on restoring service levels, rebuilding infrastructure, and strengthening organizational capacity. The budget includes one additional full-time Engineering Technician position to support the City’s expanding Capital Improvement Program and increasing project management demands. In addition, the budget converts a temporary part-time administrative support position within the Police Department into a permanent part-time position to provide greater operational continuity and administrative support services. The budget also incorporates strategic organizational restructuring efforts, including ongoing evaluation of vacancies and position classifications to ensure staffing structures best align with operational needs and service delivery priorities. The City continues to refine internal cost allocation practices, force accounting procedures, and use of special revenue funds to maximize operational efficiency and preserve General Fund reserves.
Long-Range Financial Planning
The FY 2026–27 Preliminary Budget includes a comprehensive analysis of the City’s longrange financial condition, with a focus on the General Fund as the City’s primary operating fund. The forecast incorporates current economic trends, Measure X business license tax revenues, Measure Z sales tax revenues, anticipated pension cost increases, debt service obligations, and ongoing infrastructure investment needs.
The long-range financial forecast demonstrates that while Measure Z continues to provide critical financial stability for the City, revenue growth is expected to remain relatively flat in the near term due to broader economic conditions. Measure X is projected to generate approximately $1.2 million during its first full year of implementation in FY 2026–27. In addition, the forecast assumes consideration of a future ballot measure in 2026 to increase the Transient Occupancy Tax (TOT) rate from 11% to 12%, aligning Scotts Valley with surrounding jurisdictions in Santa Cruz County.
Despite these revenues, expenditures are projected to continue outpacing revenues in future years due to increasing labor costs, pension obligations, debt service, and infrastructure maintenance needs. Under current assumptions, the General Fund reserve balance is projected to fall below the City’s minimum reserve target in FY 2027–28. Without additional corrective actions or new revenue sources, long-range forecasts indicate reserves could be depleted within the next decade.
The City continues to evaluate operational efficiencies, staffing needs, revenue opportunities, and long-term financial strategies to improve fiscal sustainability while maintaining service levels and advancing Council priorities.
Fiscal Sustainability Planning
Consistent with the City’s Guiding Budget Principles, staff continues to identify strategies to address projected structural budget deficits and improve long-term fiscal sustainability.
Proposed and ongoing actions include:
1. Continued monitoring and evaluation of Measure X revenues and business impacts.
2. Evaluation of a 2026 ballot measure to increase the Transient Occupancy Tax rate from 11% to 12%, with up to 13% as an option.
3. Ongoing review of staffing levels, operational efficiencies, and vacant positions prior to refilling.
4. Continued refinement of force accounting, internal service allocations, and use of special revenue funds to reduce pressure on the General Fund.
5. Strategic prioritization of capital projects and infrastructure investments based on longterm funding capacity.
While recent financial conditions have improved compared to prior years, significant long-term infrastructure and operational funding needs remain. Continued strategic planning and fiscal prudence will be necessary to maintain service levels and advance community priorities.
Transfers
Transfers represent the movement of resources between funds within the City’s financial structure to support operational needs, capital improvements, debt obligations, and legally restricted activities. Transfers do not represent expenditures to outside vendors, but rather internal reallocations of funding to ensure resources are aligned with operational and capital priorities.
The FY 2026–27 Preliminary Budget reflects expanded use of transfers associated with special revenue funds, force accounting, and capital project funding. These adjustments improve transparency, maximize eligible funding sources, and reduce reliance on the General Fund to support capital and operational activities.
Capital Improvement Projects
The proposed FY 2026–27 Capital Improvement Program totals approximately $9.4 million and continues the City’s focus on infrastructure reinvestment, roadway improvements, park enhancements, and facility modernization.
During FY 2025–26, the City is projected to complete approximately $4.5 million in capital projects, including approximately $1.8 million in roadway resurfacing covering 15 lane miles throughout the community. In addition, the City completed the new Skypark playground project, a $750,000 improvement that was fully grant funded.
The FY 2026–27 CIP emphasizes continued roadway rehabilitation efforts, improvements along Scotts Valley Drive, and initial phases of the Shugart Park buildout. The City also
continues long-range infrastructure planning efforts through completion of the Wastewater Master Plan and Skypark Facility Master Plan.
Economic Development and Community Investment
The FY 2026–27 Preliminary Budget continues the City’s commitment to supporting community partnerships, youth engagement, and local economic vitality. The proposed budget includes $50,000 in General Fund support for the City’s Community Grant Program, which provides assistance to local organizations and programs that enhance community services and quality of life for Scotts Valley residents.
The budget also proposes continued support for youth-focused initiatives, including funding for two participants in the Pathways to Possibility Youth City Liaison Program and a partial funding match to support the schools’ O'Neill Sea Odyssey educational program. These investments reflect the City’s commitment to youth engagement, educational opportunities, and community partnership development.
In addition, staff is developing potential business support programs intended to assist local businesses with improvements related to Americans with Disabilities Act (ADA) compliance, green building initiatives, and other community-enhancing investments. These efforts are intended to provide streamlined opportunities for local businesses to reinvest in their properties while supporting broader community goals related to accessibility, sustainability, and economic development.
The FY 2026–27 budget also continues targeted investment in economic development activities associated with the Town Center initiative and broader efforts to strengthen the City’s long-term economic resilience.
FISCAL IMPACT
The FY 2026–27 Preliminary Budget establishes the proposed appropriations for City operations, capital improvements, and other governmental activities for the upcoming fiscal year. Staff will incorporate any feedback and policy direction provided by the City Council into the final FY 2026–27 Annual Budget anticipated for adoption in June 2026.
STAFF RECOMMENDATION
Staff recommends the City Council provide feedback and policy direction associated with the FY 2026-27 Proposed Budget.
TABLE OF CONTENTS
1. City Manager Budget Message 26-27
2. FY2627 Fund Balance
3. Financial Summary_Citywide
4. Financial Summary_General Fund
5. Financial Summary_Wastewater
6. FY2627 Headcount
7. FY2627 Transfer Summary
8. FY2627 Long Range Forecast
City Manager Budget Message
May 20, 2026
Honorable Mayor and Members of the City Council:
With appreciation for the tremendous collective effort dedicated to its development, the FY 2026–27 City of Scotts Valley Preliminary Budget is presented to the City Council for consideration. As I reflect on this budget and the City’s accomplishments over the last year, I am proud of the progress we’ve made toward restoring fully functional municipal services to the Scotts Valley community.
With full staffing in the Public Works Engineering Division, the City advanced an ambitious capital improvement program, with approximately $4.5 million in capital projects projected to be completed in FY 2025–26. Notable accomplishments include approximately $1.8 million invested in resurfacing 15 lane miles of roadway, as well as the completion of the new Skypark playground project, a $750,000 improvement that was fully grant funded.
Building on this momentum, and with the addition of a new Engineering Tech position, the proposed FY 2026–27 Capital Improvement Program totals approximately $9.4 million. The City also continues to strengthen its long-term operational stability through initiatives such as a five-year technology equipment replacement plan designed to improve cybersecurity, modernize systems, and enhance workforce efficiency.
The City’s workforce has also continued to stabilize following several years of recruitment and retention challenges. At the time of this report in April 2026, the City reported a 0% vacancy rate across all departments, reflecting substantial progress in organizational staffing and service capacity. For example, in the Police Department, under Chief Rutherford’s leadership, positions have been restructured to create career paths to encourage emerging leaders to stay with Scotts Valley PD rather than leave the City for career advancement in another agency. These successes in hiring and retaining employees have positioned the organization to better deliver services, manage increasing workloads, and sustain long-term operational resilience.
Our administration team, although behind the scenes, has also accomplished great success in ensuring the city runs smoothly and public facing departments have the support they need, and in modernizing systems and minimizing risk.
As a result, the City organization is more stable, productive and responsive to resident needs than it has been in many years.
We’ve accomplished these successes even though economic uncertainty continues to persist due to inflationary pressures, interest rate volatility, new tariffs, and shifting federal and state economic policies. Fortunately, the Scotts Valley economy has remained relatively stable, with sales tax revenues Fiscal Year
2026-2027
Budget
$32.8 Million Revenue
$4.3 Million Measure Z
$1.2 Million Measure X
$38.0 Million Expenses
$27.3 Million Operating
Expenses
$9.4 Million Capital
Projects
Labor Force
66.5 Staff
<2% Vacancy Rate
Planned Use of
Reserves
$0.9 Million General Fund
$4.3 Million Other Funds
remaining flat and only slight declines in hotel and utility users taxes, compared to other areas of California.
Looking ahead, the City’s economic outlook remains cautious, with sales tax projections anticipated to remain flat into the coming fiscal year. As a result, the City must continue making thoughtful and often difficult decisions to maintain quality service levels for our community while balancing the budget and planning for long-term financial stability.
Due to being a low-property tax City, Scotts Valley is highly dependent on local voter-approved revenue measures and much of our recent success is due to revenue generated by Measure Z, the City’s 1.25% sales and use tax approved by voters in March 2020. In the current fiscal year, Measure Z provided approximately $4.3 million in revenue, allowing the City to address critical staffing needs across multiple departments. For the FY 2026–27 Preliminary Budget, Measure Z revenues are projected to remain flat. As one of the City’s most significant revenue sources, sales tax performance will continue to be closely monitored as economic conditions evolve and market trends become clearer.
Measure X, approved overwhelmingly by Scotts Valley voters in November 2024, modernized the City’s business license tax structure by transitioning from an employee-based model to a gross receipts-based system. FY 2026–27 represents the first full year of Measure X implementation, with total Business License Tax revenue estimated at approximately $1.2 million. The City recognizes that local businesses continue to face economic challenges, including inflationary pressures, rising operating costs, and broader economic uncertainty. As a result, the implementation and ongoing administration of Measure X remains an important area of focus and communication with the business community as they work to balance increasing expenses in a difficult economic climate. In addition, the City continues compliance efforts to identify businesses operating without a business license in order to promote fairness and ensure all businesses contribute equitably to City services.
The City Council established the following priorities for the current and next fiscal years:
1. Maximize citywide high performance through efficient use of resources, proactive revenue development, adaptability, and strategic thinking across all operational areas.
2. Promote safety across the City through improving road conditions including safe routes for cyclists and pedestrians, preparing for and preventing wildfire impacts, and continuing proactive, community-based policing.
3. Support a thriving city through economic development, diverse and affordable housing, recreation programs, (protecting and) promoting the City’s brand and supporting community building events.
4. Improve City facilities to meet the needs of a modern workforce and community services.
5. Invest in and continue planning the City’s Town Center.
These goals have been used to inform the proposed budget and are supported by strategies and tactics developed by staff. Quarterly reports track progress of each goal and are posted to the City’s website.
Budget Overview
The proposed FY 2026–27 Annual Budget reflects cautious revenue assumptions as the City and the broader region continue to navigate inflationary pressures and ongoing economic uncertainty. The Preliminary Budget includes total revenues of approximately $32.8 million, of which $16.6 million is generated from tax revenues, including Measures X and Z. Total expenditures are budgeted at approximately $38 million, including $27.3 million in operating expenditures and an ambitious $9.4 million Capital Improvement Program focused on maintaining and enhancing City infrastructure and services.
The budget includes the planned use of approximately $0.9 million in General Fund balance, along with an additional $4.3 million from other funds to support capital projects and recreation programming. As in prior years, it is unlikely that every capital project will be completed within the fiscal year or that all positions will remain fully staffed throughout the year, which historically has resulted in expenditure savings and reduced impacts to fund balance as the year progresses.
Highlights from the proposed FY 2026-27 budget are as follows:
The City’s General Fund balance is above the minimum reserve levels for FY 2026-27. It is projected to decline below minimum reserve targets by the end of FY 2027–28 due to sluggish revenue growth, increasing pension obligations, and rising debt service payments in future years.
In alignment with the City’s fiscal policies, the proposed budget strategically relies on special revenue funds and other available funding sources to preserve General Fund reserves. A comprehensive review of allowable expenditures, expanded use of force accounting, and restructuring of the Capital Improvement Program (CIP) and capital outlay funding has eliminated the need for a General Fund transfer to the CIP Fund in FY 2026–27. These efforts are reflected in increased transfer activity between funds and a broader allocation of departmental expenses to eligible non-General Fund sources.
The FY 2026–27 budget and long-range forecast assume placement of a 2026 ballot measure to increase the Transient Occupancy Tax (hotel tax) from 11% to 12%, beginning in 2027. Any variations to the rate and passage of the measure will be updated during the Mid-Year Budget review.
Labor cost increases included in the budget reflect the City’s current three-year labor agreements and the City’s commitment to maintaining competitive compensation packages for employees. The largest personnel cost increases continue to occur within the Police Department. The proposed budget also includes the addition of one new Engineering Technician position to support the City’s expanding Capital Improvement Program and increasing project needs. In addition, select programs and staffing assignments have been restructured to improve operational efficiency. Vacant positions will continue to be evaluated throughout the year to assess operational necessity and organizational efficiency prior to refilling.
The School Resource Officer program continues to be funded entirely by the City’s General Fund.
The budget allocates $50,000 in General Fund support for the City’s Community Grant Program.
Additionally, two youth-focused programs are proposed to receive $12,000 from the Youth Programs Special Revenue Fund.
The Economic Development budget continues to prioritize investments that support future Town Center development and long-term economic vitality. The City is also exploring additional economic development opportunities to assist local businesses with ADA improvements, green building enhancements, and similar investments intended to strengthen and support the local business community.
The FY 2026–27 Capital Improvement Program emphasizes continued roadway improvements, including planned work along Scotts Valley Drive, as well as the initial phases of the new Shugart Park buildout.
Fiscal Reserves and Long-Range Forecast
The City Council has established reserve
policies intended to maintain fiscal stability for
both operating and capital funds. The General
Fund is projected to utilize approximately $0.9
million in reserves during FY 2026–27 as
expenditures continue to outpace revenues in
order to maintain core City services and deliver
critical capital improvement projects. The
projected ending General Fund balance for FY
2026–27 is approximately $4.6 million, or 21% of
operating expenditures, which remains above the City’s minimum reserve target of 17%. However, based on current projections, the General Fund balance is expected to fall below the minimum reserve target in FY 2027–28.
The City’s long-range financial forecast incorporates the full implementation of Measure X as well as a proposed increase in the Transient Occupancy Tax (hotel tax) from 11% to 12% beginning in 2027. Even with these revenue assumptions, expenditures are projected to exceed revenues by approximately $1 million annually in the near term, with gradual improvement over time. While these projections present significant long-term challenges, they also provide the City time to closely monitor economic conditions, evaluate operational efficiencies, and consider future revenue and expenditure strategies.
The operating surpluses experienced between
2021 and 2023 were largely attributable to onetime federal American Rescue Plan Act (ARPA) funding, combined with reduced staffing levels
and limited capital project activity during and
following the pandemic period. In 2024, the City
Council established a Section 115 Pension Trust
Fund with an initial $2 million contribution to begin
proactively addressing future pension obligations
and long-term liabilities.
To fully understand the City’s long-range financial outlook, it is important to recognize the lasting impacts of past fiscal challenges. The chart below illustrates the City’s major tax revenue sources from 2009 through 2024. The loss of redevelopment revenue was
not meaningfully offset for nearly a decade,
leaving the City in a difficult financial position
until the passage of Measure Z in 2020. When
adjusted for inflation, the cumulative impact of
those lost revenues exceeds $30 million. Today,
property tax revenues generate approximately
$2.1 million annually, representing only 9% of
the City’s governmental revenues, while
Measure Z generates approximately $4.3 million
annually, accounting for nearly 20% of total
governmental revenue. This revenue structure
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
($0.9)
($1.0)
($0.8)
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highlights the City’s continued reliance on voter-approved local funding measures to maintain service levels and operational stability.
In addition, years of deferred maintenance on streets, parks, buildings, and other public infrastructure have left the City facing substantial reinvestment needs. The City continues to work through a costly period of catching up on long-deferred capital improvements and infrastructure modernization. Natural disasters requiring emergency road repairs exasperate the City’s challenged infrastructure, and our engineering team’s capacity to focus on planned CIP projects. The City’s budget forecast cannot predict the unanticipated costs or the cashflow impacts of waiting for state or federal emergency funding reimbursements when natural disasters hit and the City does not currently have set aside reserves for emergencies.
To better understand and prioritize capital needs, Public Works has completed several long-range planning assessments, including the Citywide Parks Master Plan, Pavement Condition Assessment, and Facility Conditions Assessment. Currently underway are the Wastewater Master Plan and the Skypark Facility Master Plan, both of which are intended to guide efficient infrastructure investment and resource planning over the next decade and beyond. This budget also includes $50,000 for a future City Hall feasibility study, the first step in identifying a long-term solution to City’s facility inadequacies. The projects identified through these planning efforts will continue to inform the City’s long-range financial forecast and future Capital Improvement Program priorities.
I would be remiss to not dedicate a portion of this summary to the Town Center. Over the last three years, the City has made incredible progress toward making the Town Center a reality and FY 2026-27 will be no different as we negotiate a development agreement with a to-be-determined private development partner, based on the City’s updated vision. The City has invested wisely to remove the prior barriers to development, and with market forces on our side, soon we will see the Town Center constructed! In Closing
Scotts Valley is not alone in facing financial challenges; however, our challenges are unique due to our low property tax rate. The City is on a path of modernization and renewal to bring back our streets, parks and services to a level that our staff and community can be proud of. I believe the team at the City is up to this task, but the community will need to continue to fund this important work for current and future generations.
Thank you to the City Council for your ongoing support and commitment to the Scotts Valley community.
Thank you to Mayor Lind and Vice Mayor Clark, as the budget subcommittee, for your guidance and feedback as we prepared this budget; and a huge thank you to the finance team and the entire City staff for your incredibly hard work to help move our City forward.
Mali LaGoe, City Manager
City of Scotts Valley
Summary of Financial Resources and Requirements
FY 2026-27
Fund Description
Projected Beginning
Fund Balance
07/01/2026
Estimated
Revenues
FY27
Transfers
In
Estimated Total
Funds Available
Proposed
Budget
Expenditures
FY27 Transfers Out
Projected Ending
Fund Balance
06/30/2027
General Funds
1 General Fund 4,694,332 20,344,115 1,141,250 26,179,697 21,670,000 571,927 3,937,770 6 Equipment Replacement Reserve 870,604 33,000 - 903,604 - 196,500 707,104 Recreation Funds (4, 28, 123) - 378,174 635,731 1,013,905 950,101 63,804 - Subtotal General Funds 5,564,936 20,755,289 1,776,981 28,097,206 22,620,101 832,231 4,644,874 Capital Improvement Projects
150 Major Capital Projects 793,873 682,000 5,354,150 6,830,023 6,713,150 - 116,873 151 Capital Outlay Projects 6,589 - 540,500 547,089 540,500 - 6,589 Subtotal Capital Improvement Projects 800,462 682,000 5,894,650 7,377,112 7,253,650 - 123,462 Special Revenue Funds - Development Impact Fees
7 Drainage Construction Impact Fees 153,947 27,128 - 181,075 59 - 181,016 8 Streets and Thoroughfares Impact Fees 1,230,836 496,237 - 1,727,073 543 500,000 1,226,530 9 Park & Recreation Facilities Impact Fees 1,576,209 753,963 - 2,330,172 817 1,200,000 1,129,355 21 General Facility Impact Fees 8,702 57,236 - 65,938 61 - 65,877 27 Police Facility Building Impact Fees 430,308 144,714 - 575,022 194 - 574,828 86 Library Impact Fees 224,991 104,523 - 329,514 99 - 329,415 Subtotal Special Revenue Funds - Development Impact Fees 3,624,994 1,583,801 - 5,208,795 1,773 1,700,000 3,507,022 Special Revenue Funds - Other -
2 Recycling/Environment 53,335 271,789 - 325,124 265,039 60,000 85 3 Gas Tax (HUTA) 778,539 391,949 - 1,170,488 587 830,333 339,568 5 SMIP Fees 5,722 - - 5,722 200 - 5,522
17 HOME Grant Program 111,064 3,441 - 114,505 13 - 114,492 19 Affordable Housing 3,892,722 109,449 - 4,002,171 831,733 - 3,170,438 24 Lennar Funds 474,150 - - 474,150 - 425,000 49,150
31 STP Exchange Projects (RSTPX) - 1,148,000 - 1,148,000 - 1,148,000 - 33 Tree Replacement 59,416 - - 59,416 - - 59,416
35 Green Building Funding 599,455 - - 599,455 59,000 - 540,455 36 Disability Compliance 25,919 - - 25,919 5,000 - 20,919 50 Pinewood Estates Maint. Dist. 222 6,000 - 6,222 6,000 - 222 51 Mt. Hermon Traffic Mitigation 162,706 5,041 - 167,747 - - 167,747 77 Skypark Landscape Maint. Dist. 0 41,750 - 41,750 41,750 - 0 78 Skypark Landscape Maint. Dist. Insurance 582,869 17,440 - 600,309 272 - 600,037 88 Library Improvements (Measure S) 140 1,878 - 2,018 6 - 2,012 89 Library - Cty MOE Excess Distribution 692,062 18,464 - 710,526 220 - 710,306 115 Section 115 Set Aside - Pension 2,370,164 126,000 - 2,496,164 7,210 270,000 2,218,954 155 Measure D Sales Tax for Transportation 895,320 407,612 - 1,302,932 398 475,000 827,534 156 SB-1 (RMRA) 966,464 378,203 - 1,344,667 432 1,005,817 338,418 200 Quimby Act 211,508 6,336 - 217,844 77 - 217,767
201 Measure Q 17,000 200,000 - 217,000 - 127,250 89,750 306 Supplemental Law Enforcement Services 191,585 106,530 - 298,115 77 148,000 150,038 313 Youth Based Programs 51,173 4,000 - 55,173 17,300 - 37,873 317 EDG Revolving Loan 487,689 14,646 - 502,335 229 - 502,106 Subtotal Special Revenue Funds - Other 12,629,225 3,258,528 - 15,887,753 1,235,543 4,489,400 10,162,810 Debt Service Funds
66 COP Debt Service Reserve 769,878 - - 769,878 - 650,000 119,878 Subtotal Debt Service Funds 769,878 - - 769,878 - 650,000 119,878 Total Governmental Funds 23,389,495 26,279,618 7,671,631 57,340,744 31,111,067 7,671,631 18,558,046 Wastewater Enterprise Funds (funds are presented with working capital (current assets, less current liabilities) 10 Wastewater Operations 2,895,352 4,898,785 - 7,794,137 4,058,793 814,599 2,920,745 11 Tertiary Operating (262,632) 352,000 595,849 685,217 685,217 - (0) 12 Waterwater Treatment Facility Fee (DIF) 481,775 600,239 - 1,082,014 12,704 1,028,250 41,060 14 Wastewater Capital Replacement Fund 327,217 634,730 1,292,000 2,253,947 2,173,000 - 80,947 Subtotal Wastewater Enterprise Funds 3,441,711 6,485,754 1,887,849 11,815,314 6,929,714 1,842,849 3,042,751 Total All Funds 26,831,206 32,765,372 9,559,480 69,156,058 38,040,781 9,514,480 21,600,797 42,324,852 Total revenues with transfers 47,555,261 Total expenses with transfers
Financial Summary – City-Wide Category Review
The FY26/27 City-Wide Budget reflects moderate revenue growth alongside increasing operational and capital costs. Total revenues are projected at $32.8 million, a 6% increase over the FY25/26 budget, while total expenditures are budgeted at $38.0 million, increasing 5% year-over-year.
Taxes remain the City’s largest revenue source at $16.6 million, increasing 4% from the prior year budget. The most significant growth is in Charges for Service, which increases 37% to $8.2 million, reflecting higher service and development activity. These gains are partially offset by declines in Other Revenues (-18%) and Investment Earnings (-19%) due to reduced one-time revenues and lower interest income projections.
Expenditures are primarily driven by increases in Salaries & Benefits (+7%) and Capital (+7%), reflecting rising labor costs and continued infrastructure investment. Services & Supplies remain stable with a slight 2% decrease, while Debt Service increases 43% due to scheduled repayment obligations.
Overall, the budget continues to prioritize core City services, infrastructure investment, and long-term financial stability while managing ongoing cost pressures and revenue variability.
City-Wide Revenues
Category Prior Year FY25/26 Budget FY26/27 Budget
Diff to
PY
Budget
Taxes $15,279,636 $15,887,813 $16,563,553 4%
Charges For Service $6,373,284 $5,961,000 $8,162,345 37% Other Revenues $10,195,874 $6,104,870 $4,997,630 -18%
Franchise Fees $1,370,685 $1,345,000 $1,385,000 3%
Investment Earnings $1,142,573 $748,000 $731,920 -2%
Intergovernmental $634,090 $452,000 $456,250 1%
Recreation & Rental
Fees $523,862 $398,400 $436,174 9%
Fines & Forfeitures $47,360 $29,000 $32,500 12%
Total Revenues $35,567,364 $30,926,083 $32,765,372 6%
City-Wide Expenses
Category Prior Year FY25/26 Budget FY26/27 Budget
Diff to
PY
Budget
Salaries & Benefits $14,522,878 $15,643,589 $16,790,284 7% Services & Supplies $10,320,922 $11,091,482 $10,884,098 -2% Capital $9,763,669 $8,643,800 $9,236,650 7%
Debt $1,908,730 $789,000 $1,129,750 43%
Total Expenses $36,516,199 $36,167,871 $38,040,782 5%
Financial Summary – General Fund
The FY26/27 General Fund Budget reflects steady revenue growth alongside continued increases in departmental operating costs. Total General Fund revenues are projected at $20.8 million, an increase of 3% over the FY25/26 budget, while expenditures are budgeted at $22.6 million, increasing 5% year-over-year.
Taxes remain the General Fund’s primary revenue source at $15.9 million, increasing 4% from the prior year budget. Charges for Service show significant growth of 26% to $1.5 million, reflecting increased service and development activity.
General Fund expenditures are primarily driven by increases in public safety, administration, and development-related services. The Police Department budget increases 7% to $8.9 million, while Community Development increases 10% to $2.1 million, reflecting staffing and operational needs. City Administration increases of 6% is mainly due to larger debt payments, while Public Works remains relatively flat and Recreation decreases slightly by 2%.
Overall, the FY26/27 General Fund Budget continues to prioritize essential City services, public safety, and operational stability while addressing rising personnel and service delivery costs amid changing revenue conditions.
Financial Summary – Wastewater Enterprise Fund
The FY26/27 Wastewater Budget reflects stable operating revenues and continued investment in system operations and infrastructure. Total revenues are projected at $6.5 million, a 5% decrease from the FY25/26 budget, while total expenditures are budgeted at $6.9 million, increasing 3% year-over-year.
Wastewater revenues continue to be primarily supported by Charges for Service, which increase 11% to $5.2 million, with $550 thousand being in development impact fees.
Overall revenue growth is limited because FY25/26 represented the final year of the current wastewater rate study increases, resulting in no additional scheduled rate increases in FY26/27. Other Revenues decrease significantly by 51% due to lower anticipated one-time revenues compared to the prior year budget, while Investment Earnings decline 44% as interest income projections moderate. The budget also includes $218,750 in intergovernmental revenue associated with a grant for the Wastewater Master Plan.
Expenditures are projected to increase modestly, driven primarily by personnel and capitalrelated costs. Salaries & Benefits increase 9% to $1.6 million, reflecting staff and benefit cost increases. Capital Outlay increases 3% to $2.0 million, supporting continued investment in wastewater infrastructure and system reliability. Services & Supplies remain essentially flat compared to the prior year budget.
Overall, the FY26/27 Wastewater Budget maintains a focus on operational stability, infrastructure investment, and long-term system maintenance while managing fluctuations in one-time revenues and preparing for future rate study considerations.
Wastewater Revenues by Category
Category Prior Year FY25/26 Budget FY26/27 Budget
Diff to PY
Budget
Charges For Service $4,297,471 $4,701,000 $5,216,100 11% Other Revenues $213,558 $2,022,000 $986,730 -51%
Intergovernmental $0 $0 $218,750 100%
Investment Earnings $104,725 $115,000 $64,174 -44%
Total Revenues $4,615,754 $6,838,000 $6,485,754 -5%
Wastewater Expenses by Category
Category Prior Year FY25/26 Budget FY26/27 Budget
Diff to PY
Budget
Salaries & Benefits $1,409,593 $1,432,011 $1,554,961 9% Services & Supplies $2,618,011 $3,402,004 $3,401,753 0% Capital Outlay $949,842 $1,915,000 $1,973,000 3%
Total Expenses $4,977,446 $6,749,015 $6,929,714 3%
FY 2026-27 Budgeted Positions
The FY 2026–27 Budget includes a total of 66.50 Full-Time Equivalent (FTE) positions allocated across the City’s major operating departments to support essential municipal services and organizational priorities. The Police Department represents the largest staffing allocation with 28.50 FTEs, reflecting the City’s continued commitment to public safety, law enforcement, and emergency response services. FY 2026–27 staffing changes within the Police Department include the conversion of a temporary Administrative Analyst position to a permanent part-time position and a departmental reorganization transitioning to a 1 Captain / 2 Lieutenant management structure.
Public Works accounts for a combined 21.50 FTEs across General Fund and Wastewater operations and is responsible for maintaining the City’s infrastructure, public facilities, streets, utilities, and environmental systems. FY 2026–27 includes the addition of 1.00 FTE for an Engineering Technician position to support increasing operational and capital improvement demands.
Administrative Services, which includes the City Manager’s Office, Finance, and Human Resources functions, is allocated 7.00 FTEs to support citywide administrative and internal service operations. Community Development is allocated 6.00 FTEs to oversee planning, permitting, building, and economic development activities. The Recreation Department includes 3.50 FTEs dedicated to recreational programming, community services, and public amenities.
Overall, the staffing plan reflects a balanced approach that aligns personnel resources with operational needs, strategic priorities, and community expectations while maintaining long-term fiscal responsibility.
Department FTE Count
City Administration 7
Community Development 6
Police 28.5
Recreation 3.5
Public Works - General 13.15
Public Works - Wastewater 8.35
Total FTE 66.5
FY 2026-27 Budgeted Positions by Title
The following tables reflect the City’s budgeted positions and authorized full-time equivalent (FTE) allocations for the fiscal year and are intended to present staffing levels included in the adopted budget, not necessarily the exact positions filled at any given time.
Certain classifications are flexibly staffed in Level I/II/III series, allowing positions to be filled at varying levels depending on operational needs, employee promotions, vacancies, or recruitment conditions during the year. As a result, specific position titles and classification levels may change while remaining within the overall authorized staffing and budget framework. City Council approves the total personnel budget and overall authorized FTE allocations through the annual budget process but does not approve staffing at the individual position classification level. The City Manager, serving as the Personnel Officer, is authorized to administer staffing assignments and classification allocations within the adopted budget and authorized FTE limits.
FY 2026/27 Transfer_Allocation Activity
Transfer From Transfer To Amount Method Purpose
66 1 650,000 $ Budget Fund 66 debt smoothing
115 1 270,000 $ Budget Section 115 Trust CalPERS UAL smoothing 6 1 26,000 $ Actuals Computer Replacements
306 1 68,000 $ Budget Axon Equipment
6 151 170,500 $ Actuals Capital Outlay
2 150 60,000 $ Actuals Capital - Storm Drain Trash Capture System 3 150 333,333 $ Actuals Capital - Annual Street Resurfacing Project 3 150 497,000 $ Actuals Capital - Scotts Valley Drive Corridor Improvements 8 150 500,000 $ Actuals Capital - Traffic Signal Upgrade 9 150 1,200,000 $ Actuals Capital - Shughart Park Buildout 12 14 50,000 $ Actuals Capital - Wastewater Master Plan 12 14 268,750 $ Actuals Capital - Wastewater Collection System Pipeline Upgrades 12 14 709,500 $ Actuals Capital - Wastewater MBR Upgrade 15 14 45,000 $ Actuals Capital Outlay - Wastewater - Recycled Water Pump Replacement 24 151 65,000 $ Actuals Capital Outlay - Parks Lighting Project 24 151 25,000 $ Actuals Capital Outlay - Siltanen Snack Shack Roof & Gutters 24 151 40,000 $ Actuals Capital Outlay - MacDorsa Sidewalk Repairs 24 151 30,000 $ Actuals Capital Outlay - Hocus Pocus Sidewalk Repairs 24 151 20,000 $ Actuals Capital Outlay - Senior Center Trash Enclosure 24 151 22,000 $ Actuals Capital Outlay - Senior Center Siding & Paint 24 151 22,000 $ Actuals Capital Outlay - Siltanen Parking Lot Resurfacing 24 151 40,000 $ Actuals Capital Outlay - Skypark Parking Lot Resurfacing 24 150 135,000 $ Actuals Capital - Siltanen Restroom Upgrade 24 151 26,000 $ Actuals Capital Outlay - Parks Buildings Roofing 31 150 523,000 $ Actuals Capital - Mt Hermon Road Improvements 31 150 500,000 $ Actuals Capital - Scotts Valley Drive Cooridor Improvements 31 150 125,000 $ Actuals Capital - Granite Creek Overpass 155 150 200,000 $ Actuals Capital - Mt Hermon Road Improvements 155 150 275,000 $ Actuals Capital - Scotts Valley Drive Cooridor Improvements 156 150 666,667 $ Actuals Capital - Annual Street Resurfacing Project 156 150 36,150 $ Actuals Capital - Mt Hermon Road Improvements 156 150 303,000 $ Actuals Capital - Scotts Valley Drive Cooridor Improvements 306 151 80,000 $ Actuals Capital Outlay - Police Patrol Vehicle 123 28 62,862 $ Actuals Recreation Activity Subsidy
123 4 942 $ Actuals Recreation Activity Subsidy
1 4 571,927 $ Actuals Recreation Activity Subsidy
201 1 47,250 $ Budget Street Sweeping for Clean Drains
201 1 80,000 $ Budget Parks maintenance, field treatments, Land Trust contract 10 14 218,750 $ Actuals WW Master Plan Grant
10 11 595,849 $ Actuals Tertiary
$ 9,559,480
In municipal budgeting, transfers refer to the movement of funds between different accounts or funds within the City’s financial structure. These transfers are used to allocate resources where they are most needed, ensure balanced funding across operations, and support specific purposes such as capital projects, debt repayment, or special projects. Unlike direct expenditures for goods and services, transfers do not represent spending on external vendors but rather reflect internal reallocations of financial resources.
By including these transfers in the budget package, the City provides transparency into how it strategically manages and prioritizes financial resources across departments and programs.
Method: The method determines if the funds are transferred based on actuals or the budget.
Actuals: If it is Special Revenue that is restricted to be used only as expended, it should be listed as the Actuals method.
Budget: For funds that Council can assign, it could be listed as the Budget method if the intention is to dedicate these funds regardless of if the full expense purpose has been recognized. This is to allow for future year continuity of fund balance assignments.
Long-Range Financial Forecast
The City prepares a long-range financial forecast to support strategic decision-making, evaluate fiscal sustainability, and identify future financial challenges and opportunities.
The forecast is intended to provide a planning framework rather than predict exact outcomes. It allows the City Council and community to better understand long-term trends affecting operations, capital investment needs, reserve levels, and service sustainability.
The General Fund forecast incorporates current revenue trends, projected operating expenditures, reserve policies, and anticipated capital and service needs over the next ten years. The model assumes the continuation of current service levels while also recognizing increasing costs associated with infrastructure maintenance, personnel obligations, and long-term liabilities.
The City Council has established reserve policies to maintain financial stability and ensure the City can respond to economic uncertainty and emergency needs. Under current projections, the General Fund is expected to utilize approximately $0.9 million in reserves during FY 2026/27 as expenditures continue to outpace revenues. The projected ending fund balance for FY 2026/27 is approximately $4.6 million, or 21% of operating expenditures, which remains above the City’s minimum reserve target of 17%. However, based on current assumptions, reserve levels are projected to decline below the minimum policy target beginning in FY 2027/28.
The long-range forecast assumes full implementation of Measure X and includes a proposed increase to the Transient Occupancy Tax (TOT) from 11% to 12% beginning in 2027. Even with these additional revenues, the City is projected to experience annual $(1.0)
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operating deficits in the near term, with gradual improvement occurring over the forecast period as revenues stabilize and expenditure growth moderates.
The City continues to face long-term financial pressures resulting from the loss of redevelopment funding, which was not substantially replaced for nearly a decade. While voter-approved local revenue measures have helped stabilize operations in recent years, the City remains heavily reliant on those sources to maintain current service levels.
Property tax revenues currently generate approximately $2.1 million annually, representing only 9% of governmental revenues, while Measure Z generates approximately $4.3 million annually, accounting for nearly 20% of total governmental revenue.
In 2024, the City Council established a Section 115 Pension Trust Fund with an initial $2 million contribution to proactively address future pension obligations and reduce longterm unfunded liabilities. This action reflects the City’s commitment to long-term financial planning and fiscal sustainability.
The forecast is based on several key assumptions, including steady growth in core revenues, continued inflationary pressures on labor and operating costs, and no major economic downturns during the forecast period. The model does not include speculative or unidentified revenue sources unless they have been formally approved or reasonably defined.
To evaluate potential alternatives for improving long-term fiscal sustainability, the forecast also includes a scenario analysis assuming an increase in the TOT from 12% to 13%. The current TOT rate is 11%, and the base forecast assumes a future voter-approved increase to 12% beginning in 2027. The alternative 13% scenario demonstrates the potential impact an ($0.9) ($1.0)
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additional percentage point could have on reserve preservation and long-term financial stability.
While the forecast shows gradual improvement over time, the City continues to face a structural imbalance between recurring revenues and expenditures under current assumptions. Maintaining long-term fiscal sustainability will require ongoing evaluation of revenues, operational efficiencies, service delivery models, and expenditure priorities.
City staff will continue to monitor economic conditions, tax revenues, and expenditure trends closely, including the performance of Measure X revenues approved by voters in November 2024. The long-range financial forecast will remain a living planning document and will be updated regularly, beginning with the FY 2026/27 Mid-Year Review, to ensure the City remains responsive to changing financial conditions and positioned for long-term fiscal resilience.
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AGENDA ITEM 3.
DATE: 5/20/2026
City of Scotts Valley
CITY COUNCIL STAFF REPORT
DATE: 5/20/2026
TO: Honorable Mayor and City Council
FROM: Rodolfo Onchi, Public Works Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Award Contract to VSS International, Inc. for the Scotts Valley Drive/Mt. Hermon Road Improvements Project No. P26-002 and Authorize the City Manager to Execute a Contract in an Amount Not to Exceed $1,536,211.00
SUMMARY OF ISSUE
On September 18, 2024, the City Council received a presentation regarding safety, multimodal access, and roadway improvement alternatives for the Scotts Valley Drive corridor. Scotts Valley Drive and Mt. Hermon Road are separate roadway improvement projects; however, both corridors serve as major arterial roadways providing access to local businesses, schools, residential neighborhoods, and Highway 17, and both have been identified as priority areas for roadway rehabilitation and complete streets improvements.
The Scotts Valley Drive presentation included traffic operations analysis, collision history data, roadway configuration alternatives, and potential bicycle and pedestrian safety enhancements consistent with the City’s General Plan and Active Transportation Plan. Following the presentation and community outreach efforts, the City Council provided direction on the preferred project elements and scope of work for the Scotts Valley Drive Improvement Project.
The Scotts Valley Drive and Mt. Hermon Road projects generally include pavement resurfacing, lane narrowing, buffered bike lanes, bike lane markings, and high-visibility crosswalks intended to improve bicyclist and pedestrian safety along both arterial corridors.
Due to the similar scope and construction elements of the two projects, staff combined them into a single construction contract to increase project efficiency and improve bid competitiveness by advertising a larger combined project.
The City advertised the Scotts Valley Drive/Mt. Hermon Road Improvement Project for public bidding on March 31, 2026. Bids were due and publicly opened on April 28, 2026. A total of seven (7) bids were received from licensed contractors.
A summary of the bids received is provided below:
Bidder Amount of Bid
VSS International, Inc. $1,536,211.00
QA Constructers $1,546,143.30
Precision Grade $1,637,016.00
Anderson Pacific $1,667,561.00
Joseph Albanese $1,692,863.00
Monterey Peninsula Engineering $1,717,865.00
Zara Construction $2,326,010.00
Following review of the bid proposals, staff determined that VSS International, Inc. submitted the lowest responsive and responsible bid for the project. Staff reviewed the bid for responsiveness, contractor licensing, references, and compliance with the project specifications and requirements.
The bid submitted by VSS International, Inc. was within the Engineer’s Estimate for the project and staff determined the submitted pricing to be competitive and consistent with current market conditions.
Construction is anticipated to begin in early Summer 2026 and is expected to be completed by October 15, 2026, weather and field conditions permitting.
FISCAL IMPACT
Funding for the Scotts Valley Drive and Mt. Hermon Road Improvement Project is included in the FY 2025/26 Capital Improvement Program budget and is supported through Measure D revenues, a Regional Transportation Commission (RTC) grant, and SB1 funding sources.
There is no impact to the General Fund.
STAFF RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. 2094 which:
1. Awards the contract for the Scotts Valley Drive/Mt. Hermon Road Improvements Project to VSS International, Inc. as the lowest responsive and responsible bidder in the amount of $1,536,211.00;
2. Authorizes a 20% construction contingency in the amount of $307,242.20, for a total
project authorization not to exceed $1,843,453.20; and
3. Authorizes the City Manager to execute the construction contract and approve change orders within the authorized contingency amount.
TABLE OF CONTENTS
1. Resolution No. 2094_Contract Award SV Dr_Mt Hermon Road Improvements Project
2. Contract_VSS International Inc.
RESOLUTION NO. 2094
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF Scotts Valley AWARDING A CONSTRUCTION CONTRACT TO VSS INTERNATIONAL, INC. FOR THE SCOTTS VALLEY DRIVE/MT. HERMON ROAD IMPROVEMENTS PROJECT NO. P26-002,
AUTHORIZING A CONSTRUCTION CONTINGENCY, AND AUTHORIZING THE CITY
MANAGER TO EXECUTE THE CONTRACT AND APPROVE CHANGE ORDERS
WITHIN THE AUTHORIZED CONTINGENCY AMOUNT
WHEREAS, the City of Scotts Valley identified Scotts Valley Drive and Mt.
Hermon Road as priority corridors for roadway rehabilitation and complete streets improvements to improve safety and multimodal access; and WHEREAS, on September 18, 2024, the City Council received a presentation regarding safety, multimodal access, roadway improvement alternatives, and potential bicycle and pedestrian enhancements for the Scotts Valley Drive corridor; and WHEREAS, the Scotts Valley Drive and Mt. Hermon Road Improvement Projects generally include pavement resurfacing, lane narrowing, buffered bike lanes, bike lane markings, and high-visibility crosswalks intended to improve bicyclist and pedestrian safety; and
WHEREAS, due to the similar scope and construction elements of the two projects, the City combined the projects into a single construction contract to improve project efficiency and bid competitiveness; and
WHEREAS, the City publicly advertised the Scotts Valley Drive/Mt. Hermon Road Improvements Project No. P26-002 for bids on March 31, 2026, and bids were publicly opened on April 28, 2026; and
WHEREAS, seven (7) bids were received from licensed contractors; and WHEREAS, VSS International, Inc. submitted the lowest responsive and responsible bid in the amount of $1,536,211.00; and
WHEREAS, staff reviewed the bid proposal for responsiveness, contractor licensing, references, and compliance with the project specifications and requirements and determined the bid to be competitive and consistent with current market conditions; and
WHEREAS, funding for the project is included in the FY 2025/26 Capital Improvement Program budget and is supported through Measure D revenues, Regional Transportation Commission grant funding, and SB1 funding sources, with no impact to the General Fund.
NOW, THEREFORE, BE IT RESOLVED AND ORDERED:
1. The City Council hereby awards the construction contract for the Scotts Valley Drive/Mt. Hermon Road Improvements Project No. P26-002 to VSS International, Inc. in the amount of $1,536,211.00 as the lowest responsive and responsible bidder.
2. The City Council hereby authorizes a construction contingency in the amount of $307,242.20, representing twenty percent (20%) of the contract amount, for a total project authorization not to exceed $1,843,453.20.
3. The City Council hereby authorizes the City Manager to execute the construction contract and approve change orders within the authorized contingency amount.
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 20th day of May 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Approved:
Donna Lind, Mayor
Attest:
Cathie Simonovich, City Clerk
PUBLIC WORKS CONSTRUCTION CONTRACT BETWEEN
THE CITY OF SCOTTS VALLEY AND
VSS INTERNATIONAL, INC.
Section 1. Contract Intro/Parties
THIS AGREEMENT, made and concluded this May 20, 2026 between the CITY OF SCOTTS VALLEY, hereinafter called CITY, and VSS International, Inc., hereinafter called CONTRACTOR.
WITNESS TO, that for and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by CITY, and under the conditions expressed in the bonds, bearing even date with these presents and hereunto annexed, CONTRACTOR agrees with CITY, at CONTRACTOR'S own proper cost and expense, to do all the work and furnish all the materials, except such as are mentioned in the specifications to be furnished by CITY, necessary to construct and complete the work of the improvement herein referenced in a good workmanlike and substantial manner and to the satisfaction of the CITY’S Director of Public Works, VSS International, Inc., in accordance with the Standard Provisions hereto annexed, and also in accordance with the General Prevailing Wage Rates as determined by the Department of Industrial Relations, which said Standard Provisions and General Prevailing Wage Rates are hereby specifically referred to and by such reference made a part hereof.
The work to be done is described in Section 1 "Description of Work" of the Standard Provisions, which said Standard Provisions are hereby made a part of this contract, and is shown upon the plans entitled Scotts
Valley Dr/Mt. Hermon Rd Improvements Project, which said plans are hereby made a part of the contract. The work shall be completed 60 working days after issuance of notification to proceed.
Section 2. Contract Terms
CITY hereby promises and agrees with CONTRACTOR to employ, and does hereby employ, CONTRACTOR to provide the materials and to do the work according to the terms and conditions herein contained and referred to, for the prices set forth in the Bid of CONTRACTOR for the work to be constructed and completed under this Agreement, which prices shall be considered as though repeated herein, subject to additions and deductions as provided therein, and hereby contracts to pay the same at the time, in the manner upon the conditions herein set forth; and the said parties for themselves, their heirs, executors, administrators, successors and assigns, do hereby agree to the full performance of the covenants herein contained.
Section 3. Prevailing Wages
The statement of prevailing wages appearing in the General Prevailing Wage Rates is hereby specifically referred to and by this reference is made a part of this contract. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid or proposal of said CONTRACTOR, then this instrument shall control, and nothing herein shall be considered as an acceptance of the said terms of said proposal conflicting herewith.
Section 4. Labor Code Compliance
By its signature hereunder, as CONTRACTOR, CONTRACTOR hereby certifies that it is aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured
General Services Agreement between
CITY OF SCOTTS VALLEY and VSS INTERNATIONAL, INC.
against liability for workmen's compensation or to undertake self-insurance in accordance with the provisions of that code, and it will comply with such provisions before commencing the performance of the work of this contract.
Section 5. Compensation
CONTRACTOR shall be compensated for satisfactory completion of the work in compliance with the contract documents for the sum not to exceed $1,536,211.00 in accordance with the Bid Schedule outlined in the CONTRACTOR’S Bid and Bid Price Schedule dated April 28, 2026.
CONTRACTOR agrees to receive and accept the prices as set forth in the Bid of CONTRACTOR for the work to be constructed and completed under this Agreement, which prices shall be considered as though repeated herein, subject to additions and deductions as provided therein, as full compensation for furnishing all materials and for doing all the work contemplated and embraced in this agreement; also, for all loss or damage arising out of the nature of the work aforesaid, or from the action of elements, or from any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the work until its acceptance by CITY, and for all the risks of every description connected with the work; also, for all expenses incurred by or in consequence of the suspension or discontinuance of work; and for well and faithfully completing the work, and the whole thereof, in the manner and according to the plans and specifications, and the requirements of Engineer.
Section 6. Indemnification
CONTRACTOR shall indemnify and save harmless and defend CITY, its elected officials, officers, agents, consultants, servants and employees, and each of them from and against:
A. Any and all claims, demands, causes of action, damages, costs, expenses, losses or liabilities, in law or in equity, of every kind and nature whatsoever for, but not limited to, injury to or death of any person including CONTRACTOR, or any elected official, officer, agent, consultant, servant and/or employee of CITY or CONTRACTOR, and damages to or destruction of property of any person, including, but not limited to, CITY and/or CONTRACTOR and their elected officials, officers, agents, consultants, servants and/or employees, arising out of or in any manner directly or indirectly connected with the work to be performed under this agreement, however caused, regardless of any negligence of CITY or its elected officials, officers, agents, consultants, servants or employees, except the sole negligence or willful misconduct of CITY or its elected officials, officers, agents, consultants, servants or employees, or the active negligence of CITY, its elected officials, officers, agents, consultants, servants or employees;
B. and any and all actions, proceedings, damages, costs, expenses, penalties or liabilities, in law or equity, of every kind or nature whatsoever, arising out of, resulting from, or on account of the violation of any governmental law or regulation, compliance with which is the responsibility of CONTRACTOR.
General Services Agreement between
CITY OF SCOTTS VALLEY and VSS INTERNATIONAL, INC.
CONTRACTOR shall, at CONTRACTOR'S own cost, expense and risk, defend any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against CITY or CITY’S elected officials, officers, agents, consultants, servants or employees.
CONTRACTOR shall pay and satisfy and judgment, award or decree that may be rendered against CITY or its elected officials, officers, agents, consultants, servants or employees, in any such suit, action or other legal proceedings;
CONTRACTOR shall reimburse CITY and its elected officials, officers, agents, consultants, servants and employees for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided.
Section 7. Insurance Requirement
Prior to the commencement of any work, CONTRACTOR shall provide CITY with evidence that it has obtained insurance and Performance and Payment Bonds satisfying all requirements outlined in the Insurance Certificate. Failure to do so shall be deemed a material breach of this Construction Contract.
Section 8. Contract Documents/References
The complete contract for the work of improvement herein referenced consists of the following documents, all of which are hereby expressly made a part hereof and incorporated herein by this reference. CONTRACTOR shall be bound by the requirements and obligations of such documents.
1. Notice To Bidders
2. Construction Agreement
3. Bond for Faithful Performance
4. Bond of Security of Laborers and Material Person
5. Proposal
6. General Provisions
7. Contractor’s Bid and Bid Price Schedule
8. Public Contract Code Section 10162 Questionnaire
9. Public Contract Code Section 10232 Statement
10. Public Contract Code Section 10285.1 Statement
11. Noncollusion Affidavit
12. Bidder’s Bond
General Services Agreement between
CITY OF SCOTTS VALLEY and VSS INTERNATIONAL, INC.
13. Standard Provisions
14. Standard Specifications dated 2024 and Standard Plans dated 2024 of the California Department of Transportation
15. Labor Surcharge and Equipment Rental Rates and the General Prevailing Wage Rates as determined by the California Department of Transportation Division of Construction (all as referenced herein)
16. Technical specifications
17. Plans entitled,
18. Insurance Certificate
19. Information for Bidders
Section 9. Signatures
IN WITNESS WHEREOF, CITY has caused these presents to be executed by its officers hereunto duly authorized, and CONTRACTOR has subscribed same, all on the day and year first above written.
General Services Agreement between
CITY OF SCOTTS VALLEY and VSS INTERNATIONAL, INC.
**signature_122884**
SIGNATURE
Jeff Roberts, President
CONTRACTOR
**date_signed_122884**
DATE SIGNED
A, B, & C12 293727
LICENSE NO.:
**signature_122883**
SIGNATURE
Mali LaGoe
FULL NAME
**date_signed_122883**
DATE SIGNED
City Manager
TITLE
**signature_122881**
SIGNATURE
Kirsten Powell
FULL NAME
**date_signed_122881**
DATE SIGNED
City Clerk
TITLE
**signature_122882**
SIGNATURE
Cathie Simonovich
FULL NAME
**date_signed_122882**
DATE SIGNED
City Attorney
TITLE
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
INSURER(S) AFFORDING COVERAGE
INSURER F :
INSURER E :
INSURER D :
INSURER C :
INSURER B :
INSURER A : NAIC #
NAME: CONTACT
(A/C, No): FAX
E-MAIL ADDRESS:
PRODUCER
(A/C, No, Ext): PHONE
INSURED
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
OTHER:
(Per accident)
(Ea accident)
$
$
N / A
SUBR WVDADDL
INSD
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $
$
$
$ PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person) COMBINED SINGLE LIMIT
AUTOS ONLY
AUTOS ONLY AUTOS NON-OWNED OWNED SCHEDULED
ANY AUTO
AUTOMOBILE LIABILITY
Y / N WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED?
(Mandatory in NH) DESCRIPTION OF OPERATIONS below
If yes, describe under
ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEEE.L. EACH ACCIDENT EROTH- STATUTE PER
(MM/DD/YYYY) LIMITS POLICY EXP(MM/DD/YYYY) POLICY EFFLTR TYPE OF INSURANCE POLICY NUMBER INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)
EXCESS LIAB
UMBRELLA LIAB EACH OCCURRENCE $ AGGREGATE $
$
OCCUR
CLAIMS-MADE DED RETENTION $
PRODUCTS - COMP/OP AGG $ GENERAL AGGREGATE $ PERSONAL & ADV INJURY $ MED EXP (Any one person) $
EACH OCCURRENCE $ DAMAGE TO RENTED
PREMISES (Ea occurrence) $ COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO- JECT LOC
CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)
CANCELLATION
AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.
CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED
AUTOS ONLY
5/5/2026
Gallagher Brokerage & Insurance Solutions, Inc.
50 California St
Floor 12
San Francisco CA 94111
Susan Lane 415-391-2141 415-989-9923 [email protected] License#: 0329598 Admiral Insurance Company 24856 REEDFAM-01 Hartford Fire Insurance Company 19682 VSS International, Inc.
3785 Channel Drive
West Sacramento CA 95691
Harleysville Insurance Co of New York 10674 Ironshore Specialty Insurance Company 25445 Navigators Specialty Insurance Company 36056 538844136 B X 2,000,000 X 100,000 5,000 2,000,000 4,000,000 X
Y Y 57CSEQU2541 3/1/2026 3/1/2027
4,000,000
B 2,000,000 XY Y 57CSEQU2542 3/1/2026 3/1/2027
E
A
C
X 5,000,000 X
Y AZ26EXCZ0GTKMIC
UX00000074803
CRA0000159
3/1/2026
3/1/2026
3/1/2026
Y 3/1/2027
3/1/2027
3/1/2027
5,000,000 ** CA Self-Insured Certificates Attached.
D Pollution Liability Y Y ICELLUW00167493 3/1/2026 3/1/2027 Occurrence Aggregate
$5,000,000
$5,000,000
** Excess - Additional Primary Layer - Axis Surplus Lines - Policy Number: P-001-001534935-02 - Effective: 3-1-2026 Expiration 3-1-2027 VSSI Job No. 26-039 City of Scotts Valley- Scotts Valley Dr/Mt. Hermon Rd Improvements Project PW Project No. P26-002 - City of Scotts Valley, its officers, officials, employees and volunteers are additional insured with respect to General Liability, Automobile Liability and Pollution Liability per endorsements attached. Coverage is Primary and Non-Contributory. Waiver of Subrogation is applicable per endorsements attached. Umbrella Excess Liability is Excess of Underlying general Liability, Automobile Liability and Employer's Liability on a following form basis. Policies contain a 30-day notice of cancellation, 10-days for non-payment of premium.
City of Scotts Valley
361 Kings Village Road
Scotts Valley CA 95006
STATE OF CALIFORNIA
DEPARTMENT OF INDUSTRIAL RELATIONS
OFFICE OF SELF-INSURANCE PLANS
1750 Howe Avenue, Suite 215
Sacramento,CA 95825
Phone No. (916) 464-7000
FAX (916) 464-7007
TO WHOM IT MAY CONCERN:
This certifies that Certificate of Consent to Self-Insure No. 2106-C was issued by the Director of Industrial Relations to:
CERTIFICATION OF SELF-INSURANCE OF WORKERS' COMPENSATION VSS International, Inc.
under the provisions of Section 3700, Labor Code of California with an effective date of August 1, 1988. The certificate is currently in full force and effective.
Dated at Sacramento, California
This day the 05th of January 2026
Lyn Asio Booz, Chief
ORIG: Krissy Deleon
Corporate Safety & Risk Manager
Reed Family Companies
928 12th St, Ste 700
Modesto, Ca 95354
Gavin Newsom, Governor
COMMERCIAL AUTOMOBILE BROAD FORM
ENDORSEMENT
This endorsement modifies insurance provided under the following:
BUSINESS AUTO COVERAGE FORM
To the extent that the provisions of this endorsement provide broader benefits to the "insured" than other provisions of the Coverage Form, the provisions of this endorsement apply.
COMMERCIAL AUTOMOBILE
HA 99 16 12 21
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
1. BROAD FORM INSURED
Paragraph .1. - WHO IS AN INSURED - of
Section II - Liability Coverage is amended to
add the following:
d. Subsidiaries and Newly Acquired or
Formed Organizations
The Named Insured shown in the Declarations
is amended to include:
(1) Any legal business entity other than a
partnership or joint venture, formed as a
subsidiary in which you have an
ownership interest of more than 50% on
the effective date of the Coverage Form.
However, the Named Insured does not
include any subsidiary that is an "insured"
under any other automobile policy or
would be an "insured" under such a policy
but for its termination or the exhaustion of
its Limit of Insurance.
(2) Any organization that is acquired or
formed by you and over which you
maintain majority ownership. However,
the Named Insured does not include any
newly formed or acquired organization:
(a) That is a partnership or joint venture,
(b) That is an "insured" under any other
policy,
(c) That has exhausted its Limit of
Insurance under any other policy, or
(d) 180 days or more after its acquisition
or formation by you, unless you have
given us notice of the acquisition or
formation.
Coverage does not apply to "bodily injury"
or "property damage" that results from an
"accident" that occurred before you
formed or acquired the organization.
e. Employees as Insureds
(1). Any "employee" of yours while using a
covered "auto" you don't own, hire or
borrow in your business or your personal
affairs.
f. Lessors as Insureds
(1). The lessor of a covered "auto" while the
"auto" is leased to you under a written
agreement if:
(a) The agreement requires you to
provide direct primary insurance for
the lessor and
(b) The "auto" is leased without a driver.
Such a leased "auto" will be considered a
covered "auto" you own and not a covered
"auto" you hire.
g. Additional Insured if Required by Contract
(1) When you have agreed, in a written
contract or written agreement, that a
person or organization be added as an
additional insured on your business auto
policy, such person or organization is an
"insured", but only to the extent such
person or organization is liable for "bodily
injury" or "property damage" caused by
the conduct of an "insured" under
paragraphs a. or b. of Who Is An Insured
with regard to the ownership,
maintenance or use of a covered "auto."
The insurance afforded to any such
additional insured applies only if the
"bodily injury" or "property damage"
occurs:
(a) During the policy period, and
(b) Subsequent to the execution of such
written contract, and
Form HA 99 16 12 21 Page 1 of 5
© 2021, The Hartford
(Includes copyrighted material of Insurance Services Office, Inc. with its permission.) 57CSEQU2542
(c) Prior to the expiration of the period of
time that the written contract requires
such insurance be provided to the
additional insured.
(2) How Limits Apply
If you have agreed in a written contract or
written agreement that another person or
organization be added as an additional
insured on your policy, the most we will
pay on behalf of such additional insured is
the lesser of:
(a) The limits of insurance specified in the
written contract or written agreement;
or
(b) The Limits of Insurance shown in the
Declarations.
Such amount shall be a part of and not in
addition to Limits of Insurance shown in
the Declarations and described in this
Section.
(3) Additional Insureds Other Insurance
If we cover a claim or "suit" under this
Coverage Part that may also be covered
by other insurance available to an
additional insured, such additional insured
must submit such claim or "suit" to the
other insurer for defense and indemnity.
However, this provision does not apply to
the extent that you have agreed in a
written contract or written agreement that
this insurance is primary and
non-contributory with the additional
insured's own insurance.
(4) Duties in The Event Of Accident, Claim,
Suit or Loss
If you have agreed in a written contract or
written agreement that another person or
organization be added as an additional
insured on your policy, the additional
insured shall be required to comply with
the provisions in LOSS CONDITIONS 2. -
DUTIES IN THE EVENT OF ACCIDENT,
CLAIM , SUIT OR LOSS – OF SECTION
IV – BUSINESS AUTO CONDITIONS, in
the same manner as the Named Insured.
2. Primary and Non-Contributory if Required
by Contract
Only with respect to insurance provided to an
additional insured in A.1.g. - Additional
Insured If Required by Contract, the following
provisions apply:
(1) Primary Insurance When Required By
Contract
This insurance is primary if you have
agreed in a written contract or written
agreement that this insurance be primary.
If other insurance is also primary, we will
share with all that other insurance by the
method described in Other Insurance 5.d.
(2) Primary And Non-Contributory To Other
Insurance When Required By Contract
If you have agreed in a written contract or
written agreement that this insurance is
primary and non-contributory with the
additional insured's own insurance, this
insurance is primary and we will not seek
contribution from that other insurance.
Paragraphs (1) and (2) do not apply to other
insurance to which the additional insured has
been added as an additional insured.
When this insurance is excess, we will have
no duty to defend the insured against any
"suit" if any other insurer has a duty to defend
the insured against that "suit". If no other
insurer defends, we will undertake to do so,
but we will be entitled to the insured's rights
against all those other insurers.
When this insurance is excess over other
insurance, we will pay only our share of the
amount of the loss, if any, that exceeds the
sum of:
(1) The total amount that all such other
insurance would pay for the loss in the
absence of this insurance; and
(2) The total of all deductible and self-insured
amounts under all that other insurance.
We will share the remaining loss, if any, by
the method described in SECTION IVBusiness Auto Conditions, B. General Conditions, Other Insurance 5.d.
3. AUTOS RENTED BY EMPLOYEES
Any "auto" hired or rented by your "employee" on
your behalf and at your direction will be
considered an "auto" you hire.
The SECTION IV- Business Auto Conditions, B.
General Conditions, 5. OTHER INSURANCE
Condition is amended by adding the following:
e. If an "employee’s" personal insurance also
applies on an excess basis to a covered
"auto" hired or rented by your "employee" on
your behalf and at your direction, this
insurance will be primary to the "employee’s"
personal insurance.
4. AMENDED FELLOW EMPLOYEE EXCLUSION
EXCLUSION 5. - FELLOW EMPLOYEE - of
SECTION II - LIABILITY COVERAGE does not
apply if you have workers' compensation
insurance in-force covering all of your
"employees".
Coverage is excess over any other collectible
insurance.
5. HIRED AUTO PHYSICAL DAMAGE COVERAGE
If hired "autos" are covered "autos" for Liability
Coverage and if Comprehensive, Specified
Causes of Loss, or Collision coverages are
provided under this Coverage Form for any "auto"
you own, then the Physical Damage Coverages
provided are extended to "autos" you hire or
borrow, subject to the following limit.
The most we will pay for "loss" to any hired "auto"
is:
(1) $100,000;
(2) The actual cash value of the damaged or
stolen property at the time of the "loss"; or
(3) The cost of repairing or replacing the
damaged or stolen property,
whichever is smallest, minus a deductible. The
deductible will be equal to the largest deductible
applicable to any owned "auto" for that coverage.
No deductible applies to "loss" caused by fire or
lightning. Hired Auto Physical Damage coverage
is excess over any other collectible insurance.
Subject to the above limit, deductible and excess
provisions, we will provide coverage equal to the
broadest coverage applicable to any covered
"auto" you own.
We will also cover loss of use of the hired "auto" if
it results from an "accident", you are legally liable
and the lessor incurs an actual financial loss,
subject to a maximum of $1000 per "accident".
This extension of coverage does not apply to any
"auto" you hire or borrow from any of your
"employees", partners (if you are a partnership),
members (if you are a limited liability company),
or members of their households.
6. PHYSICAL DAMAGE - ADDITIONAL
TEMPORARY TRANSPORTATION EXPENSE
COVERAGE
Paragraph A.4.a. of SECTION III - PHYSICAL
DAMAGE COVERAGE is amended to provide a
limit of $50 per day and a maximum limit of
$1,000.
7. LOAN/LEASE GAP COVERAGE
Under SECTION III - PHYSICAL DAMAGE
COVERAGE, in the event of a total "loss" to a
covered "auto", we will pay your additional legal
obligation for any difference between the actual
cash value of the "auto" at the time of the "loss"
and the "outstanding balance" of the loan/lease.
"Outstanding balance" means the amount you
owe on the loan/lease at the time of "loss" less
any amounts representing taxes; overdue
payments; penalties, interest or charges resulting
from overdue payments; additional mileage
charges; excess wear and tear charges; lease
termination fees; security deposits not returned by
the lessor; costs for extended warranties, credit
life Insurance, health, accident or disability
insurance purchased with the loan or lease; and
carry-over balances from previous loans or
leases.
8. AIRBAG COVERAGE
Under Paragraph B. EXCLUSIONS - of SECTION
III - PHYSICAL DAMAGE COVERAGE, the
following is added:
The exclusion relating to mechanical breakdown
does not apply to the accidental discharge of an
airbag.
9. ELECTRONIC EQUIPMENT - BROADENED
COVERAGE
a. The exceptions to Paragraphs B.4 -
EXCLUSIONS - of SECTION III - PHYSICAL
DAMAGE COVERAGE are replaced by the
following:
Exclusions 4.c. and 4.d. do not apply to
equipment designed to be operated solely by
use of the power from the "auto's" electrical
system that, at the time of "loss", is:
(1) Permanently installed in or upon the
covered "auto";
(2) Removable from a housing unit which is
permanently installed in or upon the
covered "auto";
(3) An integral part of the same unit housing
any electronic equipment described in
Paragraphs (1) and (2) above; or
(4) Necessary for the normal operation of the
covered "auto" or the monitoring of the
covered "auto's" operating system.
b. Section III, Physical Damage Coverage, Limit
of Insurance, Paragraph C.2. is amended to
add the following:
$1,500 is the most we will pay for "loss" in
any one "accident" to all electronic equipment
(other than equipment designed solely for the
reproduction of sound, and accessories used
with such equipment) that reproduces,
receives or transmits audio, visual or data
signals which, at the time of "loss", is:
Form HA 99 16 12 21 Page 3 of 5
(1) Permanently installed in or upon the
covered "auto" in a housing, opening or
other location that is not normally used by
the "auto" manufacturer for the installation
of such equipment;
(2) Removable from a permanently installed
housing unit as described in Paragraph
2.a. above or is an integral part of that
equipment; or
(3) An integral part of such equipment.
c. For each covered "auto", should loss be
limited to electronic equipment only, our
obligation to pay for, repair, return or replace
damaged or stolen electronic equipment will
be reduced by the applicable deductible
shown in the Declarations, or $250, whichever
deductible is less.
10. EXTRA EXPENSE - BROADENED COVERAGE
Under Paragraph A. - COVERAGE - of SECTION
III - PHYSICAL DAMAGE COVERAGE, we will
pay for the expense of returning a stolen covered
"auto" to you.
11. GLASS REPAIR - WAIVER OF DEDUCTIBLE
Under Paragraph D. - DEDUCTIBLE - of
SECTION III - PHYSICAL DAMAGE COVERAGE,
the following is added:
No deductible applies to glass damage if the glass
is repaired rather than replaced.
12. TWO OR MORE DEDUCTIBLES
Under Paragraph D. - DEDUCTIBLE - of
SECTION III - PHYSICAL DAMAGE COVERAGE,
the following is added:
If another Hartford Financial Services Group, Inc.
company policy or coverage form that is not an
automobile policy or coverage form applies to the
same "accident", the following applies:
(1) If the deductible under this Business Auto
Coverage Form is the smaller (or smallest)
deductible, it will be waived;
(2) If the deductible under this Business Auto
Coverage Form is not the smaller (or
smallest) deductible, it will be reduced by the
amount of the smaller (or smallest)
deductible.
13. AMENDED DUTIES IN THE EVENT OF
ACCIDENT, CLAIM, SUIT OR LOSS
The requirement in LOSS CONDITIONS 2.a. -
DUTIES IN THE EVENT OF ACCIDENT, CLAIM,
SUIT OR LOSS - of SECTION IV - BUSINESS
AUTO CONDITIONS that you must notify us of an
"accident" applies only when the "accident" is
known to:
(1) You, if you are an individual;
(2) A partner, if you are a partnership;
(3) A member, if you are a limited liability
company; or
(4) An executive officer or insurance manager, if
you are a corporation.
14. UNINTENTIONAL FAILURE TO DISCLOSE
HAZARDS
If you unintentionally fail to disclose any hazards
existing at the inception date of your policy, we
will not deny coverage under this Coverage Form
because of such failure.
15. HIRED AUTO - COVERAGE TERRITORY
SECTION IV, BUSINESS AUTO CONDITIONS,
PARAGRAPH B. GENERAL CONDITIONS, 7. -
POLICY PERIOD, COVERAGE TERRITORY - is
added to include the following:
(6) For short-term hired "autos", the coverage
territory with respect to Liability Coverage is
anywhere in the world provided that if the
"insured's" responsibility to pay damages for
"bodily injury" or "property damage" is
determined in a "suit," the "suit" is brought in
the United States of America, the territories
and possessions of the United States of
America, Puerto Rico or Canada or in a
settlement we agree to.
16. WAIVER OF SUBROGATION
Paragraph 5. TRANSFER OF RIGHTS OF
RECOVERY AGAINST OTHERS TO US - of
SECTION IV - BUSINESS AUTO CONDITIONS
A. Loss Conditions is amended by adding the
following:
We waive any right of recovery we may have
against any person or organization with whom you
have a written contract that requires such waiver
because of payments we make for damages
under this Coverage Form.
17. RESULTANT MENTAL ANGUISH COVERAGE
The definition of "bodily injury" in SECTION VDEFINITIONS, C. is replaced by the following:
"Bodily injury" means bodily injury, sickness or
disease sustained by any person, including
mental anguish or death resulting from any of
these.
18. EXTENDED CANCELLATION CONDITION
Paragraph 2. of the COMMON POLICY
CONDITIONS - CANCELLATION - applies except
as follows:
If we cancel for any reason other than
nonpayment of premium, we will mail or deliver to
the first Named Insured written notice of
cancellation at least 60 days before the effective
date of cancellation.
19. HYBRID, ELECTRIC, OR NATURAL GAS
VEHICLE PAYMENT COVERAGE
In the event of a total loss to a "non-hybrid" auto
for which Comprehensive, Specified Causes of
Loss, or Collision coverages are provided under
this Coverage Form, then such Physical Damage
Coverages are amended as follows:
a. If the auto is replaced with a "hybrid" auto or
an auto powered solely by electricity or
natural gas, we will pay an additional 10%, to
a maximum of $2,500, of the "non-hybrid"
auto’s actual cash value or replacement cost,
whichever is less,
b. The auto must be replaced and a copy of a
bill of sale or new lease agreement received
by us within 60 calendar days of the date of
"loss,"
c. Regardless of the number of autos deemed a
total loss, the most we will pay under this
Hybrid, Electric, or Natural Gas Vehicle
Payment Coverage provision for any one
"loss" is $10,000.
For the purposes of the coverage provision,
a. A "non-hybrid" auto is defined as an auto that
uses only an internal combustion engine to
move the auto but does not include autos
powered solely by electricity or natural gas.
b. A "hybrid" auto is defined as an auto with an
internal combustion engine and one or more
electric motors; and that uses the internal
combustion engine and one or more electric
motors to move the auto, or the internal
combustion engine to charge one or more
electric motors, which move the auto.
20. VEHICLE WRAP COVERAGE
In the event of a total loss to an "auto" for which
Comprehensive, Specified Causes of Loss, or
Collision coverages are provided under this
Coverage Form, then such Physical Damage
Coverages are amended to add the following:
In addition to the actual cash value of the "auto",
we will pay up to $1,000 for vinyl vehicle wraps
which are displayed on the covered "auto" at the
time of total loss. Regardless of the number of
autos deemed a total loss, the most we will pay
under this Vehicle Wrap Coverage provision for
any one "loss" is $5,000. For purposes of this
coverage provision, signs or other graphics
painted or magnetically affixed to the vehicle are
not considered vehicle wraps.
Form HA 99 16 12 21 Page 5 of 5
POLICY NUMBER: ABCDEFGHIJ
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - OWNERS, LESSEES OR
CONTRACTORS - OPTION I
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
Name Of Additional Insured Person(s) Designated Project(s) Or Location(s) Or Organization(s): Of Covered Operations:
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.
A. With respect to those person(s) or organization(s) (3) In connection with "your work" for the shown in the Schedule above when you have additional insured at the project(s) or agreed in a written contract or written agreement location(s) designated in the Schedule to provide insurance such as is afforded under this and included within the "products- policy to them, Subparagraph f., Any Other completed operations hazard", but only if:
Party, under the Additional Insureds When (a) The written contract or written Required By Written Contract, Written agreement requires you to provide Agreement Or Permit Paragraph of Section II – such coverage to such additional Who Is An Insured is replaced with the following: insured at the project(s) or location(s) f. Any Other Party designated in the Schedule; and
Any other person or organization who is not (b) This Coverage Part provides an insured under Paragraphs a. through e. coverage for "bodily injury" or above, but only with respect to liability for "property damage" included within the "bodily injury", "property damage" or "personal "products-completed operations and advertising injury" caused, in whole or in hazard". part, by your acts or omissions or the acts or The insurance afforded to the additional omissions of those acting on your behalf:
insured shown in the Schedule applies:
(1) In the performance of your ongoing (1) Only if the "bodily injury" or "property operations for such additional insured at damage" occurs, or the "personal and the project(s) or location(s) designated in advertising injury" offense is committed:
the Schedule; (a) During the policy period; and
(2) In connection with your premises owned (b) Subsequent to the execution of such by or rented to you and shown in the written contract or written agreement; Schedule; or and Form HS 24 80 07 13 Page 1 of 2
© 2013, The Hartford
(Includes copyrighted material of Insurance Services Office, Inc., with its permission.) 57 CSE QU2541
ANY PERSON OR ORGANIZATION WHOM YOU
BECOME OBLIGATED TO INCLUDE AS AN
ADDITIONAL INSURED AS REQUIRED BY WRITTEN
CONTRACT.
PER WRITTEN CONTRACT OR AGREEMENT
(c) Prior to the expiration of the period of When You Add Others As An Additional time that the written contract or written Insured To This Insurance agreement requires such insurance (a) Primary Insurance When Required By be provided to the additional insured. Contract
(2) Only to the extent permitted by law; and This insurance is primary if you have agreed (3) Will not be broader than that which you in a written contract or written agreement that are required by the written contract or this insurance be primary. If other insurance written agreement to provide for such is also primary, we will share with all that additional insured. other insurance by the method described in W Paragraph (c) below. This insurance does not ith respect to the insurance afforded to the person(s) or organization(s) that are additional apply to other insurance to which the additional insured in the Schedule has been insureds under this endorsement, the added as an additional insured. following additional exclusion applies:
T (b) Primary And Non-Contributory To Other his insurance does not apply to "bodily Insurance When Required By Contract injury", "property damage" or "personal and advertising injury" arising out of the rendering This insurance is primary to and will not seek of, or the failure to render, any professional contribution from any other insurance architectural, engineering or surveying available to an additional insured under your services, including: policy provided that:
(1) The preparing, approving, or failing to (i) The additional insured in the Schedule is prepare or approve maps, shop drawings, a Named Insured under such other opinions, reports, surveys, field orders, insurance; and change orders, designs or specifications; (ii) You have agreed in a written contract or or written agreement that this insurance
(2) Supervisory, inspection, architectural or would be primary and would not seek engineering activities. contribution from any other insurance The limits of insurance that apply to the additional available to the additional insured in the Schedule. insured shown in the Schedule are described in the Limits Of Insurance section. (c) Method Of Sharing
How this insurance applies when other insurance is If all of the other insurance permits available to the additional insured is described in the contribution by equal shares, we will follow Other Insurance Condition in Section IV – this method also. Under this approach, each Commercial General Liability Conditions, except as insurer contributes equal amounts until it has otherwise amended below. paid its applicable limit of insurance or none of B. W the loss remains, whichever comes first.
ith respect to insurance provided to the
person(s) or organization(s) that are additional If any of the other insurance does not permit insureds under this endorsement, the When You contribution by equal shares, we will Add Others As An Additional Insured To This contribute by limits. Under this method, each Insurance subparagraph, under the Other insurer's share is based on the ratio of its Insurance Condition of Section IV – Commercial applicable limit of insurance to the total General Liability Conditions is replaced with the applicable limits of insurance of all insurers. following: All other terms and conditions in the policy remain unchanged.
ABCDEFGHI
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
CONTRACTORS BROAD FORM ENDORSEMENT
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
INDEX
1. Alienated Premises Coverage....................................................................................................................1
2. Damage To Your Work ..............................................................................................................................1
3. That Particular Part....................................................................................................................................1
4. Contractors Limited Professional Liability...................................................................................................2
5. Per Project and Per Location General Aggregate Limits Of Insurance........................................................2
6. Medical Payments Coverage - Including Products - Completed Operations ...............................................3
7. Injury To Employee's Reputation With Respect To Incidental Medical Malpractice ....................................3
8. Bodily Injury Employee Suits......................................................................................................................4
9. Consolidated Insurance (Wrap-Up) Programs. ...........................................................................................4
10. Access Or Disclosure Of Confidential Or Personal Information And Data-Related Liability ........................5
11. Supplementary Payments..........................................................................................................................5
12. Two Or More Coverage Parts Or Policies Issued By Us.............................................................................6
13. Notice of Cancellation to Certificate Holders ..............................................................................................6
14. Contractual Liability Coverage For Personal And Advertising Injury...........................................................6
15. Insured Contract Definition.........................................................................................................................6 1 . ALIENATED PREMISES COVERAGE of the insured , regardless of whether the "property damage" arises from breach of Exclusion j. Damage To Property of Section I - contract. Coverage A is amended as follows: B. Exclusion l. Damage To Your Work of a. The following exception to the exclusion is Section I - Coverage A is replaced by the deleted: following:
Paragraph (2) of this exclusion does not apply l. Damage to Your Work if the premises are "your work" and were
"Property damage" to that particular part never occupied, rented or held for rental by of "your work" that must be restored, you. repaired or replaced because "your work" b. This exception is replaced by the following: was incorrectly performed and included in Paragraph (2) of this exclusion does not apply the "products-completed operations if the premises are "your work". hazard".
2. DAMAGE TO YOUR WORK This exclusion does not apply if the damaged work or the work performed incorrectly was A. Section I - Coverage A - Bodily Injury And performed on your behalf by a subcontractor. Property Damage Liability, Paragraph 1.
Insuring Agreement is amended to add the This Paragraph 2.B. does not apply if Exclusion following:
l. Damage To Your Work has been otherwise
modified by endorsement. f. Damages because of "property damage" include damages the insured becomes 3. THAT PARTICULAR PART legally obligated to pay because of This Paragraph 3. applies to Exclusion j. "property damage" to "your work" or Damage to Property, subparagraphs (5), and (6), caused by "your work", and such "property Exclusion k. Damage to Your Product, and damage" shall be deemed to be caused Exclusion l. Damage to Your Work. by an "occurrence", if not intended or
expected from the standpoint
Form HS 24 50 12 20 © 2020, The Hartford Page 1 of 7
Policy Number: 51CSEQU2541
When performing operations as a "general afforded under this Coverage Part is excess over contractor", the term that particular part shall not such other valid and collectible Professional mean the entire construction, improvement or Liability insurance (including any deductible or renovation project. For purposes of this provision, self-insured retention portion thereof), and any the term "general contractor" means the other valid and collectible insurance available to contractor signing the prime construction contract the insured whether primary, excess, contingent for a construction, erection, improvement or or on any other basis. renovation project and that has main responsibility 5. PER PROJECT AND PER LOCATION GENERAL for such project including hiring all of the AGGREGATE LIMITS OF INSURANCE subcontractors and suppliers. A. For all sums which the insured becomes 4. CONTRACTORS LIMITED PROFESSIONAL legally obligated to pay as damages caused LIABILITY by "occurrences" under Section I - Coverage The following exclusion is added to Paragraph 2., A, and for all medical expenses caused by Exclusions of Section I - Coverage A - Bodily accidents under Section I - Coverage C, Injury And Property Damage Liability, and to which can be attributed only to ongoing Paragraph 2., Exclusions of Section I - operations at a single "project" or a single Coverage B - Personal And Advertising Injury "location"; Liability: 1. A separate Per Project General
This insurance does not apply to "bodily injury", Aggregate Limit or a separate Per "property damage" or "personal and advertising Location General Aggregate Limit applies injury" arising out of the rendering of or failure to to each "project" or "location", whichever render any professional services by you with is applicable. The Per Project General respect to your providing engineering, Aggregate Limit and Per Location architectural or surveying services in your Aggregate Limit is equal to the amount of capacity as an engineer, architect or surveyor. the General Aggregate Limit shown in the Declarations. Professional services include:
2. The Per Project General Aggregate Limit (1) The preparing, approving, or failing to prepare or the Per Location General Aggregate or approve, maps, shop drawings, opinions, Limit, whichever applies, is the most we reports, surveys, field orders, change orders, will pay for the sum of all damages under or drawings and specifications; and Coverage A. except damages because of (2) Supervisory or inspection activities performed "bodily injury" or "property damage" as a part of any related architectural or included in the "products-completed
engineering activities. operations hazard", and for medical This exclusion applies even if the claims against expenses under Coverage C regardless any insured allege negligence or other wrongdoing of the number of; in the supervision, hiring, employment, training or a. Insureds; monitoring of others by that insured, if the b. Claims made or "suits" brought; or "occurrence" which caused the "bodily injury" or "property damage", or the offense which caused c. Persons or organizations making the "personal and advertising injury", involved the claims or bringing "suits". rendering of or failure to render any professional 3. Any payments made under Coverage A services by you with respect to your providing for damages or under Coverage C for engineering, architectural or surveying services in medical expenses shall reduce the Per your capacity as an engineer, architect or Project General Aggregate Limit for that surveyor. "project" or the Per Location General This exclusion does not apply to your operations Aggregate for that "location", whichever in connection with construction work performed by applies. Such payments shall not reduce you or on your behalf. the General Aggregate Limit shown in the However, this exception to the exclusion will not Declarations, the Per Project General apply if you are in the business or profession of Aggregate Limit for any other "project", or providing the professional services described the Per Location General Aggregate Limit above independent from the construction work for any other "location". performed by you or on your behalf. 4. The limits shown in the Declarations for In the event this insurance applies to any injury, Each Occurrence, Damage To Premises damage, loss, cost or expense covered by Rented To You and Medical Expense Professional Liability insurance issued by a continue to apply. However, instead of company unaffiliated with us, then the insurance
being subject to the General Aggregate 2. "Location" means a premises an insured Limit shown in the Declarations, such limits owns or rents and where such insured will be subject to the applicable Per Project performs business operations other than General Aggregate Limit if attributable only construction-related operations. Each to ongoing operations at a single "project" "location" involving the same or connecting or the Per Location General Aggregate if lots, or premises whose connection is attributable only to ongoing operations at a separated by a street, roadway, waterway single "location". or right-of-way railroad shall be considered a single "location." "Location" does not B. For all sums which the insured becomes legally include a premises that is a "project". obligated to pay as damages caused by "occurrences" under Section I - Coverage A This provision does not apply if the Per Project and the and for all medical expenses caused by Per Location General Aggregate Limit has been accidents under Section I - Coverage C , otherwise modified by endorsement. which cannot be attributed only to ongoing 6. MEDICAL PAYMENTS COVERAGE - INCLUDING operations at a single "project" or a single PRODUCTS-COMPLETED OPERATIONS "location"; Paragraph 1.a. of the Insuring Agreement - 1. Any payments made under Coverage A for Coverage C is replaced by the following: damages or under Coverage C for medical
1. Insuring Agreement expenses shall reduce the amount available under the General Aggregate Limit or the a. We will pay medical expenses as described Products-Completed Operations Aggregate below for "bodily injury" caused by an Limit, whichever is applicable; and accident:
2. Such payments shall not reduce any Per (1) On premises you own or rent; Project General Aggregate Limit or any Per (2) On ways next to premises you own or Location General Aggregate Limit. rent; C. When coverage for liability arising out of the (3) Because of your operations; or "products-completed operations hazard" is (4) Included within the definition of the provided, any payments for damages because "products-completed operations of "bodily injury" or "property damage" included hazard;"
in the "products-completed operations hazard"
will reduce the Products-Completed Operations provided that:
Aggregate Limit, and not reduce the General (1) The accident takes place in the Aggregate Limit,or any Per Project General "coverage territory" and during the Aggregate Limit or any Per Location General policy period; Aggregate Limit. (2) The expenses are incurred and D. The provisions of Section III - Limits Of reported to us within three years of the
Insurance not otherwise modified by this date of the accident; and endorsement shall continue to apply as
(3) The injured person submits to stipulated. examination, at our expense, by E. For the purposes of Paragraph 5., the following physicians of our choice as often as we definitions apply: reasonably require.
"Project" means a premises an insured does not 7. INJURY TO EMPLOYEE'S REPUTATION WITH own or rent and where such insured performs RESPECT TO INCIDENTAL MEDICAL construction-related operations. Each "project" MALPRACTICE involving the same or connecting lots, or
premises whose connection is separated by a A. The following is added to Paragraph 1.e. of the street, roadway, waterway, railroad or Insuring Agreement - Coverage A:
right-of-way shall be considered a single (3) With respect to incidental medical "project". malpractice, "bodily injury" includes
1. If a "project" has been abandoned and then damages claimed for injury to emotions or restarted, or if the authorized contracting reputation of an "employee" arising out of parties deviate from plans, blueprints,
the rendering or failure to render
designs, specifications or timetables, the professional health care services as a "project" shall be considered a single physician, dentist, nurse, emergency "project". "Project" does not include a medical technician or paramedic services. premises that is a "location".
Form HS 24 50 12 20 Page 3 of 7
B. The following exclusion is added to Coverage "Bodily injury" or "property damage" resulting B - Personal and Advertising Injury: from "repair work" or "punch list work" at a "wrap project or premises" but only when the
"Personal and advertising injury arising out of applicable "consolidated insurance (wrap-up) the rendering or failure to render professional program" does not apply or no longer applies health care services as a physician, dentist, to such "repair work" or "punch list work". nurse, emergency medical technician or paramedic. This exception does not apply to the cost of performing such "repair work" or "punch list 8. BODILY INJURY EMPLOYEE SUITS work", or to the "repair work" or "punch list A. "Bodily injury" as listed in Paragraph 2.a.(1) of work" itself.
Section II - Who Is An Insured, does not D. Additional Insured Extension apply to 2.a.(1)(a) through 2.a.(1)(c). "Bodily injury" or "property damage" for which B. Part a. of Paragraph 4. Nonowned Watercraft you are solely an additional insured under the in Section II - Who Is An Insured does not "consolidated insurance (wrap-up) program". apply. The coverage provided under Paragraphs 9.A
9. CONSOLIDATED INSURANCE (WRAP-UP)
through 9.D. above is subject to all terms, PROGRAMS conditions and exclusions of this policy.
The following exclusion is added to Section I For purposes of Paragraph 9, the following Coverage A: definitions apply:
This insurance does not apply to any "bodily injury"
"Consolidated insurance (wrap-up) program" or "property damage" arising out of any "wrap means any agreement or arrangement, including project or premises" where an insured under this any contractor-controlled, owner-controlled, policy is or was also an insured under one or more project-specific or similar insurance program under commercial general liability (CGL) policies which one or more contractor(s) working on a (including any umbrella or excess policies that specified project are insured under one or more include the commercial general liability policy(ies) commercial general liability (CGL) policies as underlying insurance) included within a (including any umbrella or excess policies that "consolidated insurance (wrap-up) program." This include the commercial general liability policy(ies) exclusion applies even if the limits of insurance for as underlying insurance) issued by a specified such "consolidated insurance (wrap-up) program" carrier for injury or damage arising out of are exhausted or not collected for any reason, operations conducted in connection with or including bankruptcy or insolvency of the insurer necessary or incidental to the project. providing coverage for the "consolidated insurance "Insured's operations" means all operations (wrap-up) program". This exclusion also applies if performed by a named insured (and not
the CGL coverage afforded under the
sub-contracted or performed by others on the "consolidated insurance (wrap-up) program" is insured's behalf). narrower in scope than the coverage provided by this policy. "Punch list work" means the "insured's operations" at or in connection with a "wrap project or This exclusion does not apply to: premises" in order to complete the work called for A. Products-Completed Operations Hazard in an insured's contract for the "wrap project or Exception premises".
"Bodily injury" or "property damage" arising out "Repair work" means the "insured's operations" of an "insured's operations" at or in connection that are service, maintenance, correction, repair, with a "wrap project or premises" when such replacement work, or periodic "bodily injury" or "property damage"
inspection performed by an insured at or in
commences after the "products-completed connection with a "wrap project or premises", in operations hazard" coverage or any completed order to replace or repair an insured's completed operations extension coverage provided by the work.
applicable "consolidated insurance (wrap-up) "Wrap project or premises" means any premises or program" has ended or is no longer in effect. construction, erection, improvement or renovation B. Off-Site Location Exception project subject to a "consolidated insurance "Bodily injury" or "property damage" resulting (wrap-up) program". from an "insured's operations" at or in 10. ACCESS OR DISCLOSURE OF CONFIDENTIAL connection with a "wrap project or premises" at OR PERSONAL INFORMATION AND DATAa location to which the applicable "consolidated RELATED LIABILITY insurance (wrap-up) program" does not apply.
C. Repair Work And Punch List Work
Exception
A. Exclusion p. of Section I - Coverage A - C. The following Paragraph is added to Section Bodily Injury And Property Damage Liability III - Limits Of Insurance:
is replaced by the following: Subject to Paragraph 5. Each Occurrence p. Access Or Disclosure Of Confidential Limit, the most we will pay under Coverage A Or Personal Information And for "property damage" because of all loss of Data-Related Liability "electronic data" arising out of any one "occurrence" is $100,000, unless modified by Damages arising out of: endorsement. (1) Any access to or disclosure of any D. The following definition is added to Section V person's or organization's confidential - Definitions: or personal information, including
patents, trade secrets, processing "Electronic data" means information, facts or methods, customer lists, financial programs:
information, credit card information, a. Stored as or on; health information or any other type of b. Created or used on; or nonpublic information; or
c. Transmitted to or from; (2) the loss of, loss of use of, damage to, corruption of, inability to access, or computer software, (including systems and inability to manipulate "electronic data" applications software) hard or floppy disks, that does not result from physical CD-ROMS, tapes, drives, cells, data injury to tangible property. processing devices or any other media which are used with electronically controlled This exclusion applies even if damages equipment. are claimed for notification costs, credit monitoring expenses, forensic expenses, E. For the purposes of the coverage provided by public relations expenses or any other this provision, the definition of "property loss, cost or expense incurred by you or damage" in Section V - Definitions is others arising out of that which is replaced by the following:
described in Paragraph (1) or (2) above. "Property damage" means:
However, unless Paragraph (1) above
a. Physical injury to tangible property, applies, this exclusion does not apply to including all resulting loss of use of that
liability for damages because of "bodily property. All such loss of use shall be injury". deemed to occur at the time of the
B. Exclusion w. of Section 1 - Coverage B - physical injury that caused it; Personal and Advetising Injury is replaced b. Loss of use of tangible property that is not by the following: : physically injured. All such loss of use w. Access Or Disclosure Of Confidential shall be deemed to occur at the time of Or Personal Information the "occurrence" that caused it; or "Personal and advertising injury" arising c. Loss of, loss of use of, damage to, out of any access to or disclosure of any corruption of, inability to access, or person's or organization's confidential or inability to properly manipulate "electronic personal information, including patents, data", resulting from physical injury to trade secrets, processing methods, tangible property. All such loss of customer lists, financial information, credit "electronic data" shall be deemed to occur card information, health information or any at the time of the "occurrence" that caused other type of nonpublic information. it.
This exclusion applies even if damages For the purposes of this insurance, "electronic are claimed for notification costs, credit data" is not tangible property. monitoring expenses, forensic expenses, 11. SUPPLEMENTARY PAYMENTS public relations expenses or any other
In the Supplementary Payments - Coverages A loss, cost or expense incurred by you or and B provision: others arising out of any access to or disclosure of any person's or organization's The limit for the cost of bail bonds is increased to confidential or personal information. $2,500.
Form HS 24 50 12 20 Page 5 of 7
12. TWO OR MORE COVERAGE PARTS OR (2) Assumed in a contract or agreement that POLICIES ISSUED BY US is an "insured contract", provided the "personal and advertising injury" occurs
If this policy and any other policy issued to an
subsequent to the execution of the insured by us or any affiliated company provides contract or agreement. Solely for the coverage that applies to the same claim or purposes of liability assumed in an damages, the maximum applicable limit(s) of "insured contract", reasonable attorney
liability or limit of insurance under all the policies
fees and necessary litigation expenses will not exceed the highest applicable limit of incurred by or for a party other than an liability or limit of insurance under any one policy. insured are deemed to be damages This condition does not apply to any policy issued because of "personal and advertising by us or an affiliated company specifically written injury", provided:
to apply as excess insurance over this policy.
(a) Liability to such party for, or for the 13. NOTICE OF CANCELLATION TO CERTIFICATE cost of, that party's defense has also HOLDER(S) been assumed in the same "insured This policy is subject to the following additional contract"; and Conditions:
(b) Such attorney fees and litigation A. If this policy is cancelled by the Company, expenses are for defense of that party other than for nonpayment of premium, notice against a civil or alternative dispute of such cancellation will be provided at least resolution proceeding in which thirty (30) days in advance of the cancellation damages to which this insurance effective date to the certificate holder(s) with applies are alleged. mailing addresses on file with the agent of
15. INSURED CONTRACT DEFINITION record or the Company.
a. INSURED CONTRACT-CONSTRUCTION B. If this policy is cancelled by the Company for OPERATIONS AND MUNICIPAL WORK nonpayment of premium, or by the insured, notice of such cancellation will be provided Paragraph d. of the definition of ''insured within (10) days of the cancellation effective contract'' in Section V - Definitions is deleted date to the certificate holder(s) with mailing and replaced by the following:
addresses on file with the agent of record or An obligation, as required by ordinance, to the Company.
indemnify a municipality.
If notice is mailed, proof of mailing to the last b. CONTRACTUAL LIABILITY known mailing address of the certificate holder(s)
on file with the agent of record or the Company will Paragraph f. of the definition of "insured be sufficient proof of notice. contract" is deleted and replaced by the following: Any notification rights provided by this
endorsement apply only That part of any other contract or agreementto active certificate holder(s) who were issued a certificate of pertaining to your business (including an insurance applicable to this policy's term.
indemnification of a municipality in connection
with work performed for a municipality) under Failure to provide such notice to the certificate which you assume the tort liability of another holder(s) will not amend or extend the date the party to pay for "bodily injury", "property
cancellation becomes effective, nor will it negate
damage", or "personal and advertising injury" cancellation of the policy. Failure to send notice to a third person or organization. Tort liability
shall impose no liability of any kind upon the means a liability that would be imposed by law Company or its agents or representatives. in the absence of any contract or agreement.
14. CONTRACTUAL LIABILITY COVERAGE FOR
Paragraph f. includes that part of any contract PERSONAL AND ADVERTISING INJURY or agreement that indemnifies a railroad for Exclusion e. of SECTION I - COVERAGE B "bodily injury", "property damage", or PERSONAL AND ADVERTISING INJURY "personal and advertising injury" arising out of LIABILITY is replaced by the following: construction or demolition operations, within 50 feet of any railroad property and affecting This insurance does not apply to:
any railroad bridge or trestle, tracks,
e. Contractual Liability road-beds, tunnel, underpass or crossing. "Personal and advertising injury" for which the However, Paragraph f. does not include insured has assumed liability in a contract or
that part of any contract or agreement: agreement. This exclusion does not apply to (1) That indemnifies an architect,
liability for damages: engineer or surveyor for injury or (1) That the insured would have in the
damage arising out of: absence of the contract or agreement; or
(a) Preparing, approving, or failing to (2) Under which the insured, if an prepare or approve, maps, shop architect, engineer or surveyor, drawings, opinions, reports, assumes liability for an injury or surveys, field orders, change damage arising out of the insured's orders or drawings and rendering or failure to render
specifications; or professional services, including those listed in (1) above and supervisory, (b) Giving directions or instructions, or inspection, architectural or
failing to give them, if that is the
engineering activities. primary cause of the injury or
damage; or
All other terms and conditions in the policy remain
unchanged.
Form HS 24 50 12 20 Page 7 of 7
COMMERCIAL GENERAL LIABILITY COVERAGE FORM
Various provisions in this policy restrict coverage. (1) The "bodily injury" or "property damage" is Read the entire policy carefully to determine rights, caused by an "occurrence" that takes duties and what is and is not covered. place in the "coverage territory"; Throughout this policy the words "you" and "your" (2) The "bodily injury" or "property damage" refer to the Named Insured shown in the occurs during the policy period; and Declarations, and any other person or organization (3) Prior to the policy period, no insured listed qualifying as a Named Insured under this policy. The under Paragraph 1. of Section II – Who Is words "we", "us" and "our" refer to the stock An Insured and no "employee" authorized insurance company member of The Hartford by you to give or receive notice of an providing this insurance. "occurrence" or claim, knew that the The word "insured" means any person or "bodily injury" or "property damage" had organization qualifying as such under Section II – occurred, in whole or in part. If such a Who Is An Insured. listed insured or authorized "employee" Other words and phrases that appear in quot knew, prior to the policy period, that the ation marks have special meaning. Refer to Section "bodily injury" or "property damage" V – occurred, then any continuation, change Definitions.
or resumption of such "bodily injury" or SECTION I – COVERAGES "property damage" during or after the COVERAGE A BODILY INJURY AND PROPERTY policy period will be deemed to have been DAMAGE LIABILITY known prior to the policy period.
1. Insuring Agreement c. "Bodily injury" or "property damage" will be a. We will pay those sums that the insured deemed to have been known to have occurred at the earliest time when any becomes legally obligated to pay as damages insured listed under Paragraph 1. of Section II because of "bodily injury" or "property – Who Is An Insured or any "employee" damage" to which this insurance applies. We will have the right and duty to defend authorized by you to give or receive notice of the an "occurrence" or claim: insured against any "suit" seeking those damages. However, we will have no duty to (1) Reports all, or any part, of the "bodily defend the insured against any "suit" seeking injury" or "property damage" to us or any damages for "bodily injury" or "property other insurer; damage" to which this insurance does not (2) Receives a written or verbal demand or apply. We may, at our discretion, investigate claim for damages because of the "bodily any "occurrence" and settle any claim or "suit" injury" or "property damage"; or that may result. But:
(3) Becomes aware by any other means that (1) The amount we will pay for damages is "bodily injury" or "property damage" has limited as described in Section III – Limits occurred or has begun to occur. Of Insurance; and d. Damages because of "bodily injury" include (2) Our right and duty to defend ends when damages claimed by any person or we have used up the applicable limit of organization for care, loss of services or insurance in the payment of judgments or death resulting at any time from the "bodily settlements under Coverages A or B or injury". medical expenses under Coverage C. e. Incidental Medical Malpractice And Good
No other obligation or liability to pay sums or Samaritan Coverage perform acts or services is covered unless
"Bodily injury" arising out of the rendering of explicitly provided for under Supplementary or failure to render the following health care Payments – Coverages A and B. services by any "employee" or "volunteer b. This insurance applies to "bodily injury" and worker" shall be deemed to be caused by an "property damage" only if: "occurrence" for:
HG 00 01 09 16 Page 1 of 21
© 2016 The Hartford
(Includes copyrighted material of Insurance Services Office, Inc. with its permission.) Policy Number: 57CSEQU2541
(1) Professional health care services such as: (a) Liability to such party for, or for the cost of, that party's defense has also (a) Medical, surgical, dental, laboratory, xbeen assumed in the same "insured ray or nursing services or treatment, contract"; and advice or instruction, or the related
furnishing of food or beverages; (b) Such attorney fees and litigation expenses are for defense of that party (b) Any health or therapeutic service, against a civil or alternative dispute treatment, advice or instruction; or resolution proceeding in which (c) The furnishing or dispensing of drugs damages to which this insurance or medical, dental, or surgical supplies applies are alleged. or appliances; or
c. Liquor Liability (2) First aid services, which include:
"Bodily injury" or "property damage" for which (a) Cardiopulmonary resuscitation, any insured may be held liable by reason of: whether performed manually or with a (1) Causing or contributing to the intoxication defibrillator; or of any person; (b) Services performed as a Good
(2) The furnishing of alcoholic beverages to a Samaritan. person under the legal drinking age or For the purpose of determining the limits of under the influence of alcohol; or insurance, any act or omission together with
(3) Any statute, ordinance or regulation all related acts or omissions in the furnishing relating to the sale, gift, distribution or use of these services to any one person will be of alcoholic beverages. considered one "occurrence".
This exclusion applies even if the claims However, this Incidental Medical Malpractice against any insured allege negligence or And Good Samaritan Coverage provision other wrongdoing in: applies only if you are not engaged in the business or occupation of providing any of the (a) The supervision, hiring, employment, services described in this provision. training or monitoring of others by that insured; or 2. Exclusions
(b) Providing or failing to provide This insurance does not apply to:
transportation with respect to any
a. Expected Or Intended Injury person that may be under the influence "Bodily injury" or "property damage" expected of alcohol; or intended from the standpoint of the
if the "occurrence" which caused the "bodily
insured. This exclusion does not apply to injury" or "property damage", involved that "bodily injury" or "property damage" resulting which is described in Paragraph (1), (2) or (3) from the use of reasonable force to protect above.
persons or property.
However, this exclusion applies only if you b. Contractual Liability are in the business of manufacturing, "Bodily injury" or "property damage" for which distributing, selling, serving or furnishing the insured is obligated to pay damages by alcoholic beverages. For the purposes of this reason of the assumption of liability in a exclusion, permitting a person to bring contract or agreement. This exclusion does alcoholic beverages on your premises, for not apply to liability for damages: consumption on your premises, whether or not a fee is charged or a license is required (1) That the insured would have in the for such activity, is not by itself considered the absence of the contract or agreement; or business of selling, serving or furnishing (2) Assumed in a contract or agreement that alcoholic beverages. is an "insured contract", provided the d. Workers' Compensation And Similar Laws "bodily injury" or "property damage" occurs subsequent to the execution of the Any obligation of the insured under a workers' contract or agreement. Solely for the compensation, disability benefits or purposes of liability assumed in an unemployment compensation law or any "insured contract", reasonable attorney similar law.
fees and necessary litigation expenses e. Employer's Liability incurred by or for a party other than an
"Bodily injury" to: insured are deemed to be damages
because of "bodily injury" or "property (1) An "employee" of the insured arising out of damage", provided: and in the course of:
(a) Employment by the insured; or the handling, storage, disposal, processing or treatment of waste; (b) Performing duties related to the conduct of the insured's business; or (c) Which are or were at any time transported, handled, stored, treated, (2) The spouse, child, parent, brother or sister disposed of, or processed as waste by of that "employee" as a consequence of or for: Paragraph (1) above.
(i) Any insured; or This exclusion applies:
(ii) Any person or organization for (1) Whether the insured may be liable as an whom you may be legally employer or in any other capacity; and responsible; (2) To any obligation to share damages with (d) At or from any premises, site or or repay someone else who must pay location on which any insured or any damages because of the injury. contractors or subcontractors working
This exclusion does not apply to liability directly or indirectly on any insured's assumed by the insured under an "insured behalf are performing operations if the contract". "pollutants" are brought on or to the
f. Pollution premises, site or location in connection
with such operations by such insured, (1) "Bodily injury" or "property damage" contractor or subcontractor. However, arising out of the actual, alleged or this subparagraph does not apply to: threatened discharge, dispersal, seepage, migration, release or escape of (i) "Bodily injury" or "property damage" "pollutants": arising out of the escape of fuels,
lubricants or other operating fluids (a) At or from any premises, site or which are needed to perform the location which is or was at any time normal electrical, hydraulic or owned or occupied by, or rented or mechanical functions necessary for loaned to, any insured. However, this the operation of "mobile equipment" subparagraph does not apply to:
or its parts, if such fuels, lubricants (i) "Bodily injury" if sustained within a or other operating fluids escape building and caused by smoke, from a vehicle part designed to fumes, vapor or soot produced by hold, store or receive them. This or originating from equipment that exception does not apply if the is used to heat, cool or dehumidify "bodily injury" or "property damage" the building, or equipment that is arises out of the intentional used to heat water for personal discharge, dispersal or release of use, by the building's occupants or the fuels, lubricants or other their guests; operating fluids, or if such fuels,
(ii) "Bodily injury" or "property damage" lubricants or other operating fluids for which you may be held liable, if are brought on or to the premises, you are a contractor and the owner site or location with the intent that or lessee of such premises, site or they be discharged, dispersed or location has been added to your released as part of the operations policy as an additional insured with being performed by such insured, respect to your ongoing operations contractor or subcontractor; performed for that additional (ii) "Bodily injury" or "property damage" insured at that premises, site or sustained within a building and location and such premises, site or caused by the release of gases, location is not and never was fumes or vapors from materials owned or occupied by, or rented or brought into that building in loaned to, any insured, other than connection with operations being that additional insured; or performed by you or on your behalf (iii) "Bodily injury" or "property damage" by a contractor or subcontractor; or arising out of heat, smoke or fumes (iii) "Bodily injury" or "property damage" from a "hostile fire"; arising out of heat, smoke or fumes (b) At or from any premises, site or from a "hostile fire"; or location which is or was at any time (e) At or from any premises, site or used by or for any insured or others for location on which any insured or any contractors or subcontractors working
HG 00 01 09 16 Page 3 of 21
directly or indirectly on any insured's to, premises you own or rent, provided the behalf are performing operations if the "auto" is not owned by or rented or loaned operations are to test for, monitor, to you or the insured; clean up, remove, contain, treat, (4) Liability assumed under any "insured detoxify or neutralize, or in any way contract" for the ownership, maintenance respond to, or assess the effects of, or use of aircraft or watercraft; "pollutants". (5) "Bodily injury" or "property damage"
(2) Any loss, cost or expense arising out of arising out of:
any:
(a) The operation of machinery or
(a) Request, demand, order or statutory or equipment that is attached to, or part regulatory requirement that any of, a land vehicle that would qualify insured or others test for, monitor, under the definition of "mobile clean up, remove, contain, treat, equipment" if it were not subject to a detoxify or neutralize, or in any way compulsory or financial responsibility respond to, or assess the effects of, law or other motor vehicle insurance "pollutants"; or law where it is licensed or principally (b) Claim or suit by or on behalf of a garaged; or
governmental authority for damages (b) The operation of any of the machinery because of testing for, monitoring, or equipment listed in Paragraph f.(2) cleaning up, removing, containing, or f.(3) of the definition of "mobile treating, detoxifying or neutralizing, or equipment"; or in any way responding to, or assessing (6) An aircraft that is not owned by any the effects of, "pollutants". insured and is hired, chartered or loaned
However, this paragraph does not apply to with a paid crew. However, this exception liability for damages because of "property does not apply if the insured has any other damage" that the insured would have in insurance for such "bodily injury" or the absence of such request, demand, "property damage", whether the other order or statutory or regulatory insurance is primary, excess, contingent requirement, or such claim or "suit" by or or on any other basis. on behalf of a governmental authority. h. Mobile Equipment g. Aircraft, Auto Or Watercraft
"Bodily injury" or "property damage" arising
"Bodily injury" or "property damage" arising out of:
out of the ownership, maintenance, use or (1) The transportation of "mobile equipment" entrustment to others of any aircraft, "auto" or by an "auto" owned or operated by or watercraft owned or operated by or rented or rented or loaned to any insured; or loaned to any insured. Use includes operation and "loading or unloading". (2) The use of "mobile equipment" in, or while in practice for, or while being prepared for, This exclusion applies even if the claims any prearranged racing, speed, against any insured allege negligence or demolition, or stunting activity. other wrongdoing in the supervision, hiring, employment, training or monitoring of others i. War
by that insured, if the "occurrence" which "Bodily injury" or "property damage", however caused the "bodily injury" or "property caused, arising, directly or indirectly, out of:
damage" involved the ownership, (1) War, including undeclared or civil war; maintenance, use or entrustment to others of any aircraft, "auto" or watercraft that is owned (2) Warlike action by a military force, including or operated by or rented or loaned to any action in hindering or defending against an insured. actual or expected attack, by any
government, sovereign or other authority This exclusion does not apply to: using military personnel or other agents; (1) A watercraft while ashore on premises you or
own or rent; (3) Insurrection, rebellion, revolution, usurped (2) A watercraft you do not own that is: power, or action taken by governmental (a) Less than 51 feet long; and authority in hindering or defending against any of these. (b) Not being used to carry persons for a charge; j. Damage To Property
(3) Parking an "auto" on, or on the ways next "Property damage" to:
(1) Property you own, rent, or occupy, This exclusion does not apply if the damaged including any costs or expenses incurred work or the work out of which the damage by you, or any other person, organization arises was performed on your behalf by a or entity, for repair, replacement, subcontractor.
enhancement, restoration or maintenance m. Damage To Impaired Property Or Property of such property for any reason, including Not Physically Injured prevention of injury to a person or damage
"Property damage" to "impaired property" or to another's property; property that has not been physically injured,
(2) Premises you sell, give away or abandon, arising out of:
if the "property damage" arises out of any (1) A defect, deficiency, inadequacy or part of those premises;
dangerous condition in "your product" or
(3) Property loaned to you; "your work"; or
(4) Personal property in the care, custody or (2) A delay or failure by you or anyone acting control of the insured; on your behalf to perform a contract or (5) That particular part of real property on agreement in accordance with its terms. which you or any contractors or This exclusion does not apply to the loss of subcontractors use of other property arising out of sudden working directly or indirectly on your behalf and accidental physical injury to "your are performing operations, if the "property product" or "your work" after it has been put damage" arises out of those operations; or to its intended use. (6) That particular part of any property that n. Recall Of Products, Work Or Impaired must be restored, repaired or replaced Property
because "your work" was incorrectly
Damages claimed for any loss, cost or
performed on it.
expense incurred by you or others for the loss
Paragraphs (1), (3) and (4) of this exclusion of use, withdrawal, recall, inspection, repair, do not apply to "property damage" (other than replacement, adjustment, removal or disposal damage by fire) to premises, including the of:
contents of such premises, rented to you for a (1) "Your product"; period of seven or fewer consecutive days. A separate limit of insurance applies to Damage (2) "Your work"; or To Premises Rented To You as described in (3) "Impaired property"; Section III – Limits Of Insurance. if such product, work, or property is withdrawn Paragraph (2) of this exclusion does not apply or recalled from the market or from use by if the premises are "your work" and were any person or organization because of a never occupied, rented or held for rental by known or suspected defect, deficiency, you.
inadequacy or dangerous condition in it.
Paragraphs (3) and (4) of this exclusion do o. Personal And Advertising Injury not apply to "property damage" arising from "Bodily injury" arising out of "personal and the use of elevators. advertising injury".
Paragraphs (3), (4), (5) and (6) of this p. Access or Disclosure Of Confidential Or exclusion do not apply to liability assumed Personal Information And Data-related under a sidetrack agreement. Liability Paragraphs (3) and (4) of this exclusion do Damages arising out of: not apply to "property damage" to borrowed equipment while not being used to perform (1) Any access to or disclosure of any operations at the job site. person's or organization's confidential or personal information, including patents, Paragraph (6) of this exclusion does not apply trade secrets, processing methods, to "property damage" included in the customer lists, financial information, credit "products-completed operations hazard". card information, health information or any k. Damage To Your Product other type of nonpublic information; or "Property damage" to "your product" arising (2) The loss of, loss of use of, damage to, out of it or any part of it. corruption of, inability to access, or l. Damage To Your Work inability to manipulate electronic data. "Property damage" to "your work" arising out This exclusion applies even if damages are of it or any part of it and included in the claimed for notification costs, credit "products-completed operations hazard". monitoring expenses, forensic expenses, HG 00 01 09 16 Page 5 of 21
public relations expenses or any other loss, assess the effects of an "asbestos cost or expense incurred by you or others hazard"; or
arising out of that which is described in (c) Arise out of any claim or suit for Paragraph (1) or (2) above. damages because of testing for, However, unless Paragraph (1) above monitoring, cleaning up, removing, applies, this exclusion does not apply to encapsulating, containing, treating, damages because of "bodily injury”. detoxifying or neutralizing or in any way responding to or assessing the As used in this exclusion, electronic data means information, facts or programs effects of an "asbestos hazard". stored as or on, created or used on, or transmitted to s. Recording And Distribution Of Material Or or from computer software, including systems Information In Violation Of Law and applications software, hard or floppy "Bodily injury" or "property damage" arising disks, CD-ROMS, tapes, drives, cells, data directly or indirectly out of any action or processing devices or any other media which omission that violates or is alleged to violate:
are used with electronically controlled (1) The Telephone Consumer Protection Act equipment. (TCPA), including any amendment of or q. Employment-Related Practices addition to such law;
"Bodily injury" to: (2) The CAN-SPAM Act of 2003, including (1) A person arising out of any "employment– any amendment of or addition to such law; related practices"; or (3) The Fair Credit Reporting Act (FCRA), and (2) The spouse, child, parent, brother or sister any amendment of or addition to such law, of that person as a consequence of "bodily including the Fair and Accurate Credit injury" to that person at whom any Transaction Act (FACTA); or "employment-related practices" are (4) Any federal, state or local statute, directed. ordinance or regulation, other than the
This exclusion applies: TCPA or CAN-SPAM Act of 2003 or FCRA and their amendments and additions, that (1) Whether the injury-causing event addresses, prohibits or limits the printing, described in the definition of "employmentdissemination, disposal, collecting, related practices" occurs before recording, sending, transmitting, employment, during employment or after communicating or distribution of material employment of that person; or information. (2) Whether the insured may be liable as an Damage To Premises Rented To You – employer or in any other capacity; and Exception For Damage By Fire, Lightning Or (3) To any obligation to share damages with Explosion or repay someone else who must pay
Exclusions c. through h. and j. through n. do not damages because of the injury. apply to damage by fire, lightning or explosion to r. Asbestos premises while rented to you or temporarily (1) "Bodily injury" or "property damage" occupied by you with permission of the owner. A arising out of the "asbestos hazard". separate limit of insurance applies to this coverage as described in Section III – Limits Of (2) Any damages, judgments, settlements, Insurance. loss, costs or expenses that:
(a) May be awarded or incurred by reason COVERAGE B PERSONAL AND ADVERTISING of any claim or suit alleging actual or INJURY LIABILITY threatened injury or damage of any 1. Insuring Agreement nature or kind to persons or property a. We will pay those sums that the insured which would not have occurred in becomes legally obligated to pay as damages whole or in part but for the "asbestos because of "personal and advertising injury" hazard"; to which this insurance applies. We will have
(b) Arise out of any request, demand, the right and duty to defend the insured order or statutory or regulatory against any "suit" seeking those damages. requirement that any insured or others However, we will have no duty to defend the test for, monitor, clean up, remove, insured against any "suit" seeking damages encapsulate, contain, treat, detoxify or for "personal and advertising injury" to which neutralize or in any way respond to or this insurance does not apply. We may, at our
discretion, investigate any offense and settle use another's "advertising idea" in your any claim or "suit" that may result. But: "advertisement". (1) The amount we will pay for damages is g. Quality Or Performance Of Goods – limited as described in Section III – Limits Failure To Conform To Statements Of Insurance; and "Personal and advertising injury" arising out of (2) Our right and duty to defend end when we the failure of goods, products or services to have used up the applicable limit of conform with any statement of quality or insurance in the payment of judgments or performance made in your "advertisement". settlements under Coverages A or B or h. Wrong Description Of Prices medical expenses under Coverage C.
"Personal and advertising injury" arising out of
No other obligation or liability to pay sums or the wrong description of the price of goods, perform acts or services is covered unless products or services. explicitly provided for under Supplementary i. Infringement Of Intellectual Property Payments – Coverages A and B.
Rights
b. This insurance applies to "personal and
(1) "Personal and advertising injury" arising advertising injury" caused by an offense out of any actual or alleged infringement arising out of your business but only if the or violation of any intellectual property offense was committed in the "coverage rights such as copyright, patent, territory" during the policy period. trademark, trade name, trade secret, trade
2. Exclusions dress, service mark or other designation
This insurance does not apply to: of origin or authenticity; or a. Knowing Violation Of Rights Of Another (2) Any injury or damage alleged in any clam or "suit" that also alleges an infringement "Personal and advertising injury" arising out of or violation of any intellectual property an offense committed by, at the direction or with the consent or acquiescence of right, whether such allegation ofthe infringement or violation is made by you or insured with the expectation of inflicting by any other party involved in the claim or "personal and advertising injury". "suit", regardless of whether this
b. Material Published With Knowledge Of insurance would otherwise apply. Falsity However, this exclusion does not apply if the "Personal and advertising injury" arising out of only allegation in the claim or "suit" involving oral, written or electronic publication, in any any intellectual property right is limited to: manner, of material, if done by or at the (1) Infringement, in your "advertisement", of: direction of the insured with knowledge of its falsity. (a) Copyright;
c. Material Published Prior To Policy Period (b) Slogan; or "Personal and advertising injury" arising out of (c) Title of any literary or artistic work; or oral, written or electronic publication, in any (2) Copying, in your "advertisement", a manner, of material whose first publication person’s or organization’s "advertising took place before the beginning of the policy idea" or style of "advertisement". period. j. Insureds In Media And Internet Type
d. Criminal Acts Businesses
"Personal and advertising injury" arising out of "Personal and advertising injury" committed a criminal act committed by or at the direction by an insured whose business is:
of the insured. (1) Advertising, broadcasting, publishing or e. Contractual Liability telecasting;
"Personal and advertising injury" for which the (2) Designing or determining content of web insured has assumed liability in a contract or sites for others; or agreement. This exclusion does not apply to (3) An Internet search, access, content or liability for damages that the insured would service provider. have in the absence of the contract or agreement. However, this exclusion does not apply to
Paragraphs a., b. and c. of the definition of f. Breach Of Contract "personal and advertising injury" under the
"Personal and advertising injury" arising out of a Definitions Section. breach of contract, except an implied contract to
HG 00 01 09 16 Page 7 of 21
For the purposes of this exclusion, the placing "Personal and advertising injury" arising out of frames, borders or links, or advertising, for of:
you or others anywhere on the Internet, is not (1) An "advertisement" for others on your web by itself, considered the business of site;
advertising, broadcasting, publishing or
(2) Placing a link to a web site of others on telecasting. your web site;
k. Electronic Chatrooms Or Bulletin Boards (3) Content, including information, sounds, "Personal and advertising injury" arising out of text, graphics, or images from a web site an electronic chatroom or bulletin board the of others displayed within a frame or insured hosts, owns, or over which the border on your web site; or insured exercises control. (4) Computer code, software or programming l. Unauthorized Use Of Another's Name Or used to enable:
Product
(a) Your web site; or
"Personal and advertising injury" arising out of (b) The presentation or functionality of an the unauthorized use of another's name or "advertisement" or other content on product in your e-mail address, domain name your web site. or metatags, or any other similar tactics to mislead another's potential customers. q. Right Of Privacy Created By Statute m. Pollution "Personal and advertising injury" arising out of the violation of a person's right of privacy "Personal and advertising injury" arising out of created by any state or federal act. the actual, alleged or threatened discharge, dispersal, seepage, migration, release or However, this exclusion does not apply to escape of "pollutants" at any time. liability for damages that the insured would have in the absence of such state or federal n. Pollution-Related act.
Any loss, cost or expense arising out of any: r. Violation Of Anti-Trust law (1) Request, demand, order or statutory or
"Personal and advertising injury" arising out of regulatory requirement that any insured or a violation of any anti-trust law. others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in s. Securities any way respond to, or assess the effects "Personal and advertising injury" arising out of of, "pollutants"; or the fluctuation in price or value of any stocks, (2) Claim or suit by or on behalf of a bonds or other securities. governmental authority for damages t. Recording And Distribution Of Material Or because of testing for, monitoring, Information In Violation Of Law cleaning up, removing, containing, "Personal and advertising injury" arising treating, detoxifying or neutralizing, or in directly or indirectly out of any action or any way responding to, or assessing the omission that violates or is alleged to violate: effects of, "pollutants". (1) The Telephone Consumer Protection Act o. War (TCPA), including any amendment of or "Personal and advertising injury", however addition to such law; caused, arising, directly or indirectly, out of: (2) The CAN-SPAM Act of 2003, including (1) War, including undeclared or civil war; any amendment of or addition to such law; (2) Warlike action by a military force, including (3) The Fair Credit Reporting Act (FCRA), and action in hindering or defending against an any amendment of or addition to such law, actual or expected attack, by any including the Fair and Accurate Credit government, sovereign or other authority Transaction Act (FACTA); or using military personnel or other agents; (4) Any federal, state or local statute, or ordinance or regulation, other than the
(3) Insurrection, rebellion, revolution, usurped TCPA or CAN-SPAM Act of 2003 or FCRA power, or action taken by governmental and their amendments and additions, that authority in hindering or defending against addresses, prohibits or limits the printing, any of these. dissemination, disposal, collecting,
p. Internet Advertisements And Content Of recording, sending, transmitting, Others communicating or distribution of material
or information.
u. Employment-Related Practices information or any other type of nonpublic information. "Personal and advertising injury" to:
This exclusion applies even if damages are (1) A person arising out of any "employment– claimed for notification costs, credit related practices"; or monitoring expenses, forensic expenses, (2) The spouse, child, parent, brother or sister public relations expenses or any other loss, of that person as a consequence of cost or expense incurred by you or others "personal and advertising injury" to that arising out of any access to or disclosure of person at whom any "employment-related any person's or organization's confidential or practices" are directed. personal information.
This exclusion applies: COVERAGE C MEDICAL PAYMENTS
(1) Whether the injury-causing event 1. Insuring Agreement described in the definition of "employment- a. We will pay medical expenses as described related practices" occurs before below for "bodily injury" caused by an employment, during employment or after accident:
employment of that person; (1) On premises you own or rent; (2) Whether the insured may be liable as an (2) On ways next to premises you own or employer or in any other capacity; and rent; or (3) To any obligation to share damages with (3) Because of your operations; or repay someone else who must pay damages because of the injury. provided that:
v. Asbestos (1) The accident takes place in the "coverage territory" and during the policy period; (1) "Personal and advertising injury" arising out of the "asbestos hazard". (2) The expenses are incurred and reported to us within three years of the date of the (2) Any damages, judgments, settlements, accident; and loss, costs or expenses that:
(3) The injured person submits to (a) May be awarded or incurred by reason examination, at our expense, by of any claim or suit alleging actual or physicians of our choice as often as we threatened injury or damage of any reasonably require. nature or kind to persons or property which would not have occurred b. We will make these payments regardless of in whole or in part but for the "asbestos fault. These payments will not exceed the hazard"; applicable limit of insurance. We will pay
reasonable expenses for: (b) Arise out of any request, demand, order or statutory or regulatory (1) First aid administered at the time of an requirement that any insured or others accident;
test for, monitor, clean up, remove, (2) Necessary medical, surgical, X-ray and encapsulate, contain, treat, detoxify or dental services, including prosthetic neutralize or in any way respond to or devices; and
assess the effects of an "asbestos (3) Necessary ambulance, hospital, hazard"; or professional nursing and funeral services. (c) Arise out of any claim or suit for 2. Exclusions damages because of testing for, monitoring We will not pay expenses for "bodily injury": , cleaning up, removing, encapsulating, containing, treating, a. Any Insured
detoxifying or neutralizing or in any To any insured, except "volunteer workers". way responding to or assessing the effects of an "asbestos hazard". b. Hired Person
w. Access Or Disclosure Of Confidential Or To a person hired to do work for or on behalf Personal Information of any insured or a tenant of any insured. "Personal and advertising injury" arising out of c. Injury On Normally Occupied Premises any access to or disclosure of any person's or To a person injured on that part of premises organization's confidential or personal you own or rent that the person normally information, including patents, trade secrets, occupies. processing methods, customer lists, financial d. Workers Compensation And Similar Laws information, credit card information, health To a person, whether or not an "employee" of
HG 00 01 09 16 Page 9 of 21
any insured, if benefits for the "bodily injury" are party to the "suit", we will defend that indemnitee payable or must be provided under a workers' if all of the following conditions are met:
compensation or disability benefits law or a a. The "suit" against the indemnitee seeks similar law. damages for which the insured has assumed
e. Athletics Activities the liability of the indemnitee in a contract or agreement that is an "insured contract"; To a person injured while practicing, instructing or participating in any physical b. This insurance applies to such liability exercises or games, sports, or athletic assumed by the insured; contests. c. The obligation to defend, or the cost of the f. Products-Completed Operations Hazard defense of, that indemnitee, has also been assumed by the insured in the same "insured Included within the "products-completed contract"; operations hazard".
d. The allegations in the "suit" and the g. Coverage A Exclusions information we know about the "occurrence" Excluded under Coverage A. are such that no conflict appears to exist
SUPPLEMENTARY PAYMENTS – COVERAGES between the interests of the insured and the A AND B interests of the indemnitee;
1. We will pay, with respect to any claim we e. The indemnitee and the insured ask us to investigate or settle, or any "suit" against an conduct and control the defense of that insured we defend: indemnitee against such "suit" and agree that we can assign the same counsel to defend a. All expenses we incur. the insured and the indemnitee; and b. Up to $1,000 for cost of bail bonds required f. The indemnitee: because of accidents or traffic law violations arising out of the use of any vehicle to which (1) Agrees in writing to:
the Bodily Injury Liability Coverage applies. (a) Cooperate with us in the investigation, We do not have to furnish these bonds. settlement or defense of the "suit"; c. The cost of appeal bonds or bonds to release (b) Immediately send us copies of any attachments, but only for bond amounts demands, notices, summonses or legal within the applicable limit of insurance. We do papers received in connection with the not have to furnish these bonds. "suit"; d. All reasonable expenses incurred by the (c) Notify any other insurer whose insured at our request to assist us in the coverage is available to the investigation or defense of the claim or "suit", indemnitee; and including actual loss of earnings up to $500 a (d) Cooperate with us with respect to day because of time off from work. coordinating other applicable
e. All court costs taxed against the insured in insurance available to the indemnitee; the "suit". However, such costs do not and
include attorneys' fees, attorneys' expenses,
(2) Provides us with written authorization to: witness or expert fees, or any other expenses of a party taxed to the insured. (a) Obtain records and other information related to the "suit"; and f. Prejudgment interest awarded against the insured on that part of the judgment we pay. If (b) Conduct and control the defense of the we make an offer to pay the applicable limit of indemnitee in such "suit". insurance, we will not pay any prejudgment So long as the above conditions are met, interest based on that period of time after the attorneys' fees incurred by us in the defense of offer. that indemnitee,
g. All interest on the full amount of any judgment necessary litigation expenses incurred by us and that accrues after entry of the judgment and necessary litigation expenses incurred by the before we have paid, offered to pay, or indemnitee at our request will be paid as deposited in court the part of the judgment Supplementary Payments. Notwithstanding the that is within the applicable limit of insurance. provisions of Paragraph 2.b.(2) of Section I – Coverage A – Bodily Injury And Property These payments will not reduce the limits of Damage Liability, such payments will not be insurance.
deemed to be damages for "bodily injury" and 2. If we defend an insured against a "suit" and an "property damage" and will not reduce the limits indemnitee of the insured is also named as a of insurance.
Our obligation to defend an insured's indemnitee liability company), to a co-"employee" and to pay for attorneys' fees and necessary while in the course of his or her litigation expenses as Supplementary Payments employment or performing duties ends when: related to the conduct of your
business, or to your other "volunteer a. We have used up the applicable limit of workers" while performing duties insurance in the payment of judgments or related to the conduct of your settlements; or
business; b. The conditions set forth above, or the terms of (b) To the spouse, child, parent, brother or the agreement described in Paragraph f. sister of that co-"employee" or that above, are no longer met. "volunteer worker" as a consequence SECTION II – WHO IS AN INSURED of Paragraph (1)(a) above;
1. If you are designated in the Declarations as: (c) For which there is any obligation to a. An individual, you and your spouse are share damages with or repay someone insureds, but only with respect to the conduct else who must pay damages because of a business of which you are the sole of the injury described in Paragraphs owner. (1)(a) or (1)(b) above; or
b. A partnership or joint venture, you are an (d) Arising out of his or her providing or insured. Your members, your partners, and failing to provide professional health their spouses are also insureds, but only with care services. respect to the conduct of your business. If you are not in the business of providing c. A limited liability company, you are an professional health care services:
insured. Your members are also insureds, but (a) Subparagraphs (1)(a), (1)(b) and (1)(c) only with respect to the conduct of your above do not apply to any "employee" business. Your managers are insureds, but or "volunteer worker" providing first aid only with respect to their duties as your services; and managers.
(b) Subparagraph (1)(d) above does not
d. An organization other than a partnership, joint apply to any nurse, emergency medical venture or limited liability company, you are technician or paramedic employed by an insured. Your "executive officers" and you to provide such services. directors are insureds, but only with respect to
(2) "Property damage" to property: their duties as your officers or directors. Your stockholders are also insureds, but only with (a) Owned, occupied or used by, respect to their liability as stockholders. (b) Rented to, in the care, custody or e. A trust, you are an insured. Your trustees are control of, or over which physical also insureds, but only with respect to their control is being exercised for any duties as trustees. purpose by
2. Each of the following is also an insured: you, any of your "employees", "volunteer workers", any partner or member (if you a. Employees And Volunteer Workers are a partnership or joint venture), or any
Your "volunteer workers" only while member (if you are a limited liability performing duties related to the conduct of company). your business, or your "employees", other
b. Real Estate Manager than either your "executive officers" (if you are an organization other than a partnership, joint Any person (other than your "employee" or venture or limited liability company) or your "volunteer worker"), or any organization while managers (if you are a limited liability acting as your real estate manager. company), but only for acts within the scope c. Temporary Custodians Of Your Property of their employment by you or while
Any person or organization having proper performing duties related to the conduct of temporary custody of your property if you die, your business. but only:
However, none of these "employees" or
(1) With respect to liability arising out of the "volunteer workers" are insureds for: maintenance or use of that property; and (1) "Bodily injury" or "personal and advertising (2) Until your legal representative has been injury":
appointed.
(a) To you, to your partners or members (if
d. Legal Representative If You Die you are a partnership or joint venture), to your members (if you are a limited Your legal representative if you die, but only HG 00 01 09 16 Page 11 of 21
with respect to duties as such. That 5. Additional Insureds When Required By representative will have all your rights and Written Contract, Written Agreement Or duties under this Coverage Part. Permit
e. Unnamed Subsidiary The following person(s) or organization(s) are an additional insured when you have agreed, in a Any subsidiary, and subsidiary thereof, of written contract, written agreement or because of yours which is a legally incorporated entity of a permit issued by a state or political subdivision, which you own a financial interest of more that such person or organization be added as an than 50% of the voting stock on the effective additional insured on your policy, provided the date of the Coverage Part. injury or damage occurs subsequent to the
The insurance afforded herein for any execution of the contract or agreement. subsidiary not named in this Coverage Part A person or organization is an additional insured as a named insured does not apply to injury under this provision only for that period of time or damage with respect to which such insured required by the contract or agreement. is also a named insured under another policy or would be a named insured under such However, no such person or organization is an policy but for its termination or the exhaustion insured under this provision if such person or of its limits of insurance. organization is included as an insured by an endorsement issued by us and made a part of 3. Newly Acquired Or Formed Organization this Coverage Part.
Any organization you newly acquire or form,
a. Vendors other than a partnership, joint venture or limited liability company, and over which you maintain Any person(s) or organization(s) (referred to financial interest of more than 50% of the voting below as vendor), but only with respect to stock, will qualify as a Named Insured if there is "bodily injury" or "property damage" arising no other similar insurance available to that out of "your products" which are distributed or organization. However: sold in the regular course of the vendor's business and only if this Coverage Part a. Coverage under this provision is afforded only provides coverage for "bodily injury" or until the 180th day after you acquire or form "property damage" included within the the organization or the end of the policy "products-completed operations hazard". period, whichever is earlier; (1) The insurance afforded the vendor is b. Coverage A does not apply to "bodily injury" subject to the following additional or "property damage" that occurred before exclusions: you acquired or formed the organization; and This insurance does not apply to: c. Coverage B does not apply to "personal and advertising injury" arising out of an offense (a) "Bodily injury" or "property damage" for committed before you acquired or formed the which the vendor is obligated to pay organization. damages by reason of the assumption
of liability in a contract or agreement. 4. Nonowned Watercraft This exclusion does not apply to With respect to watercraft you do not own that is liability for damages that the vendor less than 51 feet long and is not being used to would have in the absence of the carry persons for a charge, any person is an contract or agreement; insured while operating such watercraft with your (b) Any express warranty unauthorized by permission. Any other person or organization you; responsible for the conduct of such person is
also an insured, but only with respect to liability (c) Any physical or chemical change in the arising out of the operation of the watercraft, and product made intentionally by the only if no other insurance of any kind is available vendor; to that person or organization for this liability. (d) Repackaging, except when unpacked However, no person or organization is an insured solely for the purpose of inspection, with respect to: demonstration, testing, or the
substitution of parts under instructions a. "Bodily injury" to a co-"employee" of the from the manufacturer, and then person operating the watercraft; or repackaged in the original container; b. "Property damage" to property owned by, (e) Any failure to make such inspections, rented to, in the charge of or occupied by you adjustments, tests or servicing as the or the employer of any person who is an vendor has agreed to make or normally insured under this provision.
undertakes to make in the usual This insurance does not apply to:
course of business, in connection with 1. Any "occurrence" which takes place after the distribution or sale of the products; you cease to lease that land; or (f) Demonstration, installation, servicing 2. Structural alterations, new construction or or repair operations, except such demolition operations performed by or on operations performed at the vendor's behalf of such person or organization. premises in connection with the sale of d. Architects, Engineers Or Surveyors the product; Any architect, engineer, or surveyor, but only (g) Products which, after distribution or with respect to liability for "bodily injury", sale by you, have been labeled or "property damage" or "personal and relabeled or used as a container, part advertising injury" caused, in whole or in part, or ingredient of any other thing or by your acts or omissions or the acts or substance by or for the vendor; or omissions of those acting on your behalf:
(h) "Bodily injury" or "property damage" (1) In connection with your premises; or arising out of the sole negligence of the vendor for its own acts or omissions or (2) In the performance of your ongoing those of its employees or anyone else operations performed by you or on your acting on its behalf. However, this behalf.
exclusion does not apply to: With respect to the insurance afforded these (i) The exceptions contained in Sub- additional insureds, the following additional paragraphs (d) or (f); or exclusion applies:
(ii) Such inspections, adjustments, This insurance does not apply to "bodily tests or servicing as the vendor has injury", "property damage" or "personal and agreed to make or normally advertising injury" arising out of the rendering undertakes to make in the usual of or the failure to render any professional course of business, in connection services by or for you, including:
with the distribution or sale of the 1. The preparing, approving, or failing to products. prepare or approve, maps, shop drawings,
(2) This insurance does not apply to any opinions, reports, surveys, field orders, insured person or organization, from change orders or drawings and whom you have acquired such products, specifications; or or any ingredient, part or container, 2. Supervisory, inspection, architectural or entering into, accompanying or containing engineering activities. such products. This exclusion applies even if the claims b. Lessors Of Equipment against any insured allege negligence or (1) Any person(s) or organization(s) from other wrongdoing in the supervision, hiring, whom you lease equipment; but only with employment, training or monitoring of others respect to their liability for "bodily injury", by that insured, if the "occurrence" which "property damage" or "personal and caused the "bodily injury" or "property advertising injury" caused, in whole or in damage", or the offense which caused the part, by your maintenance, operation or "personal and advertising injury", involved the use of equipment leased to you by such rendering of or the failure to render any person(s) or organization(s). professional services by or for you. (2) With respect to the insurance afforded to e. Permits Issued By State Or Political these additional insureds this insurance Subdivisions
does not apply to any "occurrence" which Any state or political subdivision, but only with takes place after the equipment lease respect to operations performed by you or on expires. your behalf for which the state or political
c. Lessors Of Land Or Premises subdivision has issued a permit.
Any person or organization from whom you With respect to the insurance afforded these lease land or premises, but only with respect additional insureds, this insurance does not to liability arising out of the ownership, apply to:
maintenance or use of that part of the land or (1) "Bodily injury", "property damage" or premises leased to you. "personal and advertising injury" arising With respect to the insurance afforded these out of operations performed for the state additional insureds the following additional or municipality; or exclusions apply:
HG 00 01 09 16 Page 13 of 21
(2) "Bodily injury" or "property damage" by that insured, if the "occurrence" which included within the "products-completed caused the "bodily injury" or "property operations hazard". damage", or the offense which caused the "personal and advertising injury", involved the f. Any Other Party rendering of or the failure to render any
Any other person or organization who is not professional services by or for you. an additional insured under Paragraphs a.
The limits of insurance that apply to additional through e. above, but only with respect to insureds is described in Section III – Limits Of liability for "bodily injury", "property damage" Insurance. or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or How this insurance applies when other insurance the acts or omissions of those acting on your is available to the additional insured is described behalf: in the Other Insurance Condition in Section IV – Commercial General Liability Conditions. (1) In the performance of your ongoing operations; No person or organization is an insured with respect to the conduct of any current or past partnership, (2) In connection with your premises owned joint venture or limited liability company that is not by or rented to you; or shown as a Named Insured in the Declarations. (3) In connection with "your work" and SECTION III – LIMITS OF INSURANCE included within the "products-completed operations hazard", but only if 1. The Most We Will Pay (a) The written contract or agreement The Limits of Insurance shown in the requires you to provide such coverage Declarations and the rules below fix the most we to such additional insured; and will pay regardless of the number of:
(b) This Coverage Part provides coverage a. Insureds;
for "bodily injury" or "property damage" b. Claims made or "suits" brought; or included within the "productsc. Persons or organizations making claims or completed operations hazard". bringing "suits".
However: 2. General Aggregate Limit
(1) The insurance afforded to such additional
The General Aggregate Limit is the most we will insured only applies to the extent pay for the sum of: permitted by law; and
a. Medical expenses under Coverage C; (2) If coverage provided to the additional insured is required by a contract or b. Damages under Coverage A, except agreement, the insurance afforded to such damages because of "bodily injury" or additional insured will not be broader than "property damage" included in the "productsthat which you are required by the contract completed operations hazard"; and or agreement to provide for such c. Damages under Coverage B. additional insured. 3. Products-Completed Operations Aggregate With respect to the insurance afforded to Limit
these additional insureds, this insurance does The Products-Completed Operations Aggregate not apply to: Limit is the most we will pay under Coverage A "Bodily injury", "property damage" or
for damages because of "bodily injury" and
"personal and advertising injury" arising out of "property damage" included in the "productsthe rendering of, or the failure to render, any completed operations hazard". professional architectural, engineering or
4. Personal And Advertising Injury Limit surveying services, including:
Subject to 2. above, the Personal and (1) The preparing, approving, or failing to Advertising Injury Limit is the most we will pay prepare or approve, maps, shop drawings, under Coverage B for the sum of all damages opinions, reports, surveys, field orders, because of all "personal and advertising injury" change orders or drawings and sustained by any one person or organization. specifications; or
5. Each Occurrence Limit (2) Supervisory, inspection, architectural or engineering activities. Subject to 2. or 3. above, whichever applies, the Each Occurrence Limit is the most we will pay for This exclusion applies even if the claims the sum of: against any insured allege negligence or other wrongdoing in the supervision, hiring, a. Damages under Coverage A; and employment, training or monitoring of others
b. Medical expenses under Coverage C a. Notice Of Occurrence Or Offense because of all "bodily injury" and "property You or any additional insured must see to it damage" arising out of any one "occurrence". that we are notified as soon as practicable of an "occurrence" or an offense which may 6. Damage To Premises Rented To You Limit result in a claim. To the extent possible, Subject to 5. above, the Damage To Premises notice should include:
Rented To You Limit is the most we will pay
(1) How, when and where the "occurrence" or under Coverage A for damages because of offense took place; "property damage" to any one premises, while rented to you, or in the case of damage by fire, (2) The names and addresses of any injured lightning or explosion, while rented to you or persons and witnesses; and temporarily occupied by you with permission of (3) The nature and location of any injury or the owner. damage arising out of the "occurrence" or
In the case of damage by fire, lightning or offense.
explosion, the Damage to Premises Rented To b. Notice Of Claim You Limit applies to all damage proximately If a claim is made or "suit" is brought against caused by the same event, whether such any insured, you or any additional insured damage results from fire, lightning or explosion must: or any combination of these.
(1) Immediately record the specifics of the 7. Medical Expense Limit claim or "suit" and the date received; and
Subject to 5. above, the Medical Expense Limit is (2) Notify us as soon as practicable. the most we will pay under Coverage C for all medical expenses because of "bodily injury" You or any additional insured must see to it sustained by any one person. that we receive written notice of the claim or "suit" as soon as practicable. 8. How Limits Apply To Additional Insureds c. Assistance And Cooperation Of The If you have agreed in a written contract or written Insured agreement that another person or organization be You and any other involved insured must:
added as an additional insured on your policy, (1) Immediately send us copies of any the most we will pay on behalf of such additional demands, notices, summonses or legal insured is the lesser of: papers received in connection with the a. The limits of insurance specified in the written claim or "suit"; contract or written agreement; or (2) Authorize us to obtain records and other b. The Limits of Insurance shown in the information;
Declarations. (3) Cooperate with us in the investigation or Such amount shall be a part of and not in settlement of the claim or defense against addition to Limits of Insurance shown in the the "suit"; and Declarations and described in this Section. (4) Assist us, upon our request, in the The Limits of Insurance of this Coverage Part apply enforcement of any right against any person separately to each consecutive annual period and to or organization which may be liable to the any remaining period of less than 12 months, insured because of injury or damage to starting with the beginning of the policy period which this insurance may also apply. shown in the Declarations, unless the policy period d. Obligations At The Insureds Own Cost is extended after issuance for an additional period of No insured will, except at that insured's own less than 12 months. In that case, the additional cost, voluntarily make a payment, assume period will be deemed part of the last preceding any obligation, or incur any expense, other period for purposes of determining the Limits of than for first aid, without our consent. Insurance. e. Additional Insureds Other Insurance SECTION IV – COMMERCIAL GENERAL LIABILITY CONDITIONS If we cover a claim or "suit" under this Coverage Part that may also be covered by 1. Bankruptcy other insurance available to an additional Bankruptcy or insolvency of the insured or of the insured, such additional insured must submit insured's estate will not relieve us of our such claim or "suit" to the other insurer for obligations under this Coverage Part. defense and indemnity.
2. Duties In The Event Of Occurrence, Offense, However, this provision does not apply to the Claim Or Suit extent that you have agreed in a written
HG 00 01 09 16 Page 15 of 21
contract or written agreement that this b. Excess Insurance insurance is primary and non-contributory This insurance is excess over any of the other with the additional insured's own insurance. insurance, whether primary, excess, f. Knowledge Of An Occurrence, Offense, contingent or on any other basis:
Claim Or Suit (1) Your Work
Paragraphs a. and b. apply to you or to any That is Fire, Extended Coverage, Builder's additional insured only when such Risk, Installation Risk or similar coverage "occurrence", offense, claim or "suit" is known for "your work"; to:
(2) Premises Rented To You
(1) You or any additional insured that is an
That is fire, lightning or explosion individual; insurance for premises rented to you or (2) Any partner, if you or the additional temporarily occupied by you with insured is a partnership; permission of the owner;
(3) Any manager, if you or the additional (3) Tenant Liability insured is a limited liability company;
That is insurance purchased by you to
(4) Any "executive officer" or insurance cover your liability as a tenant for manager, if you or the additional insured is "property damage" to premises rented to a corporation; you or temporarily occupied by you with
(5) Any trustee, if you or the additional permission of the owner; insured is a trust; or (4) Aircraft, Auto Or Watercraft (6) Any elected or appointed official, if you or If the loss arises out of the maintenance or the additional insured is a political use of aircraft, "autos" or watercraft to the subdivision or public entity. extent not subject to Exclusion g. of This duty applies separately to you and any Section I – Coverage A – Bodily Injury additional insured. And Property Damage Liability;
3. Legal Action Against Us (5) Property Damage To Borrowed Equipment Or Use Of Elevators No person or organization has a right under this Coverage Part: If the loss arises out of "property damage" to borrowed equipment or the use of a. To join us as a party or otherwise bring us elevators to the extent not subject to into a "suit" asking for damages from an Exclusion j. of Section I - Coverage A -
insured; or
Bodily Injury And Property Damage b. To sue us on this Coverage Part unless all of Liability; its terms have been fully complied with. (6) When You Are Added As An Additional
A person or organization may sue us to recover Insured To Other Insurance on an agreed settlement or on a final judgment
Any other insurance available to you against an insured; but we will not be liable for covering liability for damages arising out damages that are not payable under the terms of of the premises or operations, or products this Coverage Part or and completed operations, for which you that are in excess of the applicable limit of have been added as an additional insured insurance. An agreed settlement means a by that insurance; or settlement and release of liability signed by us, the insured and the claimant or the claimant's (7) When You Add Others As An legal representative. Additional Insured To This Insurance
4. Other Insurance Any other insurance available to an
additional insured. If other valid and collectible insurance is available to the insured for a loss we cover under However, the following provisions apply to Coverages A or B of this Coverage Part, our other insurance available to any person or obligations are limited as follows: organization who is an additional insured under this coverage part. a. Primary Insurance
(a) Primary Insurance When Required This insurance is primary except when b.
By Contract below applies. If other insurance is also
primary, we will share with all that other This insurance is primary if you have insurance by the method described in c. agreed in a written contract or written below. agreement that this insurance be
primary. If other insurance is also
primary, we will share with all that 5. Premium Audit
other insurance by the method a. We will compute all premiums for this described in c. below. Coverage Part in accordance with our rules (b) Primary And Non-Contributory To and rates.
Other Insurance When Required By b. Premium shown in this Coverage Part as Contract advance premium is a deposit premium only.
If you have agreed in a written At the close of each audit period we will contract, written agreement, or permit compute the earned premium for that period that this insurance is primary and non- and send notice to the first Named Insured. contributory with the additional The due date for audit and retrospective insured's own insurance, this insurance premiums is the date shown as the due date is primary and we will not seek on the bill. If the sum of the advance and contribution from that other insurance. audit premiums paid for the policy period is greater than the earned premium, we will Paragraphs (a) and (b) do not apply to return the excess to the first Named Insured. other insurance to which the additional insured has been added as an additional c. The first Named Insured must keep records of insured. the information we need for premium
When this insurance is excess, we will computation, and send us copies at such have times as we may request. no duty under Coverages A or B to defend the insured against any "suit" if any other 6. Representations insurer has a duty to defend the insured a. When You Accept This Policy against that "suit". If no other insurer defends,
By accepting this policy, you agree: we will undertake to do so, but we will be entitled to the insured's rights against all (1) The statements in the Declarations are those other insurers. accurate and complete;
When this insurance is excess over other (2) Those statements are based upon insurance, we will pay only our share of the representations you made to us; and amount of the loss, if any, that exceeds the (3) We have issued this policy in reliance sum of: upon your representations.
(1) The total amount that all such other b. Unintentional Failure To Disclose Hazards insurance would pay for the loss in the If unintentionally you should fail to disclose all absence of this insurance; and hazards relating to the conduct of your (2) The total of all deductible and self-insured business that exist at the inception date of amounts under all that other insurance. this Coverage Part, we shall not deny We will share the remaining loss, if any, with coverage under this Coverage Part because any other insurance that is not described in of such failure. this Excess Insurance provision and was not 7. Separation Of Insureds bought specifically to apply in excess of the Except with respect to the Limits of Insurance, Limits of Insurance shown in the Declarations and any rights or duties specifically assigned in of this Coverage Part. this Coverage Part to the first Named Insured, c. Method Of Sharing this insurance applies:
If all of the other insurance permits a. As if each Named Insured were the only contribution by equal shares, we will follow Named Insured; and this method also. Under this approach each b. Separately to each insured against whom insurer contributes equal amounts until it has claim is made or "suit" is brought. paid its applicable limit of insurance or none of the loss remains, whichever comes first. 8. Transfer Of Rights Of Recovery Against Others To Us If any of the other insurance does not permit contribution by equal shares, we will a. Transfer Of Rights Of Recovery contribute by limits. Under this method, each If the insured has rights to recover all or part insurer's share is based on the ratio of its of any payment, including Supplementary applicable limit of insurance to the total Payments, we have made under this applicable limits of insurance of all insurers. Coverage Part, those rights are transferred to us. The insured must do nothing after loss to
HG 00 01 09 16 Page 17 of 21
impair them. At our request, the insured will other motor vehicle insurance law where it is bring "suit" or transfer those rights to us and licensed or principally garaged. help us enforce them. However, "auto" does not include "mobile b. Waiver Of Rights Of Recovery (Waiver Of equipment".
Subrogation) 5. "Bodily injury" means physical:
If the insured has waived any rights of a. Injury;
recovery against any person or organization b. Sickness; or for all or part of any payment, including Supplementary Payments, we have made c. Disease
under this Coverage Part, we also waive that sustained by a person and, if arising out of the right, provided the insured waived their rights above, mental anguish or death at any time. of recovery against such person or
6. "Coverage territory" means: organization in a contract, agreement or permit that was executed prior to the injury or a. The United States of America (including its damage. territories and possessions), Puerto Rico and
Canada;
9. When We Do Not Renew
b. International waters or airspace, but only if If we decide not to renew this Coverage Part, we the injury or damage occurs in the course of will mail or deliver to the first Named Insured travel or transportation between any places shown in the Declarations written notice of the included in a. above; or nonrenewal not less than 30 days before the expiration date. c. All other parts of the world if the injury or damage arises out of: If notice is mailed, proof of mailing will be sufficient proof of notice. (1) Goods or products made or sold by you in the territory described in a. above; SECTION V – DEFINITIONS (2) The activities of a person whose home is 1. "Advertisement" means the widespread public in the territory described in a. above, but is dissemination of information or images that has away for a short time on your business; or the purpose of inducing the sale of goods, products or services through: (3) "Personal and advertising injury" offenses that take place through the Internet or a. (1) Radio; similar electronic means of communication (2) Television; provided the insured's responsibility to pay (3) Billboard; damages is determined in the United States of (4) Magazine; America (including its territories and possessions), Puerto Rico or Canada, in a "suit" on the merits
(5) Newspaper; or
according to the substantive law in such territory or
b. Any other publication that is given widespread in a settlement we agree to. public distribution.
7. "Employee" includes a "leased worker".
However, "advertisement" does not include: "Employee" does not include a "temporary a. The design, printed material, information or worker". images contained in, on or upon the 8. "Employment-Related Practices" means:
packaging or labeling of any goods or
a. Refusal to employ that person; products; or
b. Termination of that person's employment; or b. An interactive conversation between or among persons through a computer network. c. Employment-related practices, policies, acts or omissions, such as coercion, demotion, 2. "Advertising idea" means any idea for an evaluation, reassignment, discipline, "advertisement". defamation, harassment, humiliation,
3. "Asbestos hazard" means an exposure or discrimination or malicious prosecution threat of exposure to the actual or alleged directed at that person. properties of asbestos and includes the mere 9. "Executive officer" means a person holding any presence of asbestos in any form. of the officer positions created by your charter,
4. "Auto" means: constitution, by-laws or any other similar a. A land motor vehicle, trailer or semitrailer governing document. designed for travel on public roads, including 10."Hostile fire" means one which becomes any attached machinery or equipment; or uncontrollable or breaks out from where it was b. Any other land vehicle that is subject to a intended to be. compulsory or financial responsibility law or
11."Impaired property" means tangible property, (a) Preparing, approving, or failing to other than "your product" or "your work", that prepare or approve, maps, shop cannot be used or is less useful because: drawings, opinions, reports, surveys, field orders, change orders or drawings a. It incorporates "your product" or "your work" and specifications; or that is known or thought to be defective, deficient, inadequate or dangerous; or (b) Giving directions or instructions, or failing to give them, if that is the b. You have failed to fulfill the terms of a primary cause of the injury or damage; contract or agreement; or
if such property can be restored to use by the
(2) Under which the insured, if an architect,
repair, replacement, adjustment or removal of
engineer or surveyor, assumes liability for
"your product" or "your work", or your fulfilling the
an injury or damage arising out of the terms of the contract or agreement. insured's rendering or failure to render
12."Insured contract" means: professional services, including those listed a. A contract for a lease of premises. However, in (1) above and supervisory, inspection, that portion of the contract for a lease of architectural or engineering activities. premises that indemnifies any person or 13."Leased worker" means a person leased to you organization for damage by fire, lightning or by a labor leasing firm under an agreement explosion to premises while rented to you or between you and the labor leasing firm, to temporarily occupied by you with permission perform duties related to the conduct of your of the owner is subject to the Damage to business. "Leased worker" does not include a Premises Rented To You Limit described in "temporary worker". Section III – Limits of Insurance;
14."Loading or unloading" means the handling of
b. A sidetrack agreement; property:
c. Any easement or license agreement, a. After it is moved from the place where it is including an easement or license agreement accepted for movement into or onto an in connection with construction or demolition aircraft, watercraft or "auto"; operations on or within 50 feet of a railroad; b. While it is in or on an aircraft, watercraft or
d. An obligation, as required by ordinance, to "auto"; or indemnify a municipality, except in connection c. While it is being moved from an aircraft, with work for a municipality; watercraft or "auto" to the place where it is
e. An elevator maintenance agreement; finally delivered; f. That part of any other contract or agreement but "loading or unloading" does not include the pertaining to your business (including an movement of property by means of a mechanical indemnification of a municipality in connection device, other than a hand truck, that is not with work performed for a municipality) under attached to the aircraft, watercraft or "auto". which you assume the tort liability of another
15."Mobile equipment" means any of the following party to pay for "bodily injury" or "property types of land vehicles, including any attached damage" to a third person or organization, machinery or equipment: provided the "bodily injury" or "property damage" is caused, in whole or in part, by a. Bulldozers, farm machinery, forklifts and other you or by those acting on your behalf. Tort vehicles designed for use principally off public liability means a liability that would be roads;
imposed by law in the absence of any b. Vehicles maintained for use solely on or next contract or agreement. to premises you own or rent;
Paragraph f. includes that part of any contract c. Vehicles that travel on crawler treads; or agreement that indemnifies a railroad for d. Vehicles, whether self-propelled or not, "bodily injury" or "property damage" arising maintained primarily to provide mobility to out of construction or demolition operations, permanently mounted: within 50 feet of any railroad property and affecting any railroad bridge or trestle, tracks, (1) Power cranes, shovels, loaders, diggers or road-beds, tunnel, underpass or crossing. drills; or
However, Paragraph f. does not include that (2) Road construction or resurfacing part of any contract or agreement: equipment such as graders, scrapers or rollers; (1) That indemnifies an architect, engineer or surveyor for injury or damage arising out e. Vehicles not described in a., b., c. or d. above of: that are not self-propelled and are maintained
HG 00 01 09 16 Page 19 of 21
primarily to provide mobility to permanently e. Oral, written or electronic publication, in any attached equipment of the following types: manner, of material that violates a person's right of privacy; (1) Air compressors, pumps and generators, including spraying, welding, building f. Copying, in your "advertisement", a person’s cleaning, geophysical exploration, lighting or organization’s "advertising idea" or style of and well servicing equipment; or "advertisement"; or
(2) Cherry pickers and similar devices used to g. Infringement of copyright, slogan, or title of raise or lower workers; any literary or artistic work, in your "advertisement". f. Vehicles not described in a., b., c. or d. above maintained primarily for purposes other than 18."Pollutants" mean any solid, liquid, gaseous or the transportation of persons or cargo. thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and However, self-propelled vehicles with the waste. Waste includes materials to be recycled, following types of permanently attached reconditioned or reclaimed. equipment are not "mobile equipment" but will be considered "autos": 19."Products-completed operations hazard":
(1) Equipment designed primarily for: a. Includes all "bodily injury" and "property damage" occurring away from premises you (a) Snow removal; own or rent and arising out of "your product" (b) Road maintenance, but not or "your work" except: construction or resurfacing; or (1) Products that are still in your physical (c) Street cleaning; possession; or (2) Cherry pickers and similar devices (2) Work that has not yet been completed or mounted on automobile or truck chassis abandoned. However, "your work" will be and used to raise or lower workers; and deemed completed at the earliest of the (3) Air compressors, pumps and generators, following times:
including spraying, welding, building (a) When all of the work called for in your cleaning, geophysical exploration, lighting contract has been completed. and well servicing equipment.
(b) When all of the work to be done at the
However, "mobile equipment" does not include job site has been completed if your any land vehicle that is subject to a compulsory contract calls for work at more than or financial responsibility law or other motor one job site. vehicle insurance law where it is licensed or
(c) When that part of the work done at a principally garaged. Land vehicles subject to a job site has been put to its intended compulsory or financial responsibility law or other motor vehicle insurance law are use by any person or organization considered other than another contractor or
"autos".
subcontractor working on the same 16."Occurrence" means an accident, including project. continuous or repeated exposure to substantially
Work that may need service, the same general harmful conditions. maintenance, correction, repair or
17. "Personal and advertising injury" means replacement, but which is otherwise injury, including consequential "bodily injury", complete, will be treated as completed. arising out of one or more of the following b. Does not include "bodily injury" or "property offenses:
damage" arising out of:
a. False arrest, detention or imprisonment;
(1) The transportation of property, unless the
b. Malicious prosecution; injury or damage arises out of a condition c. The wrongful eviction from, wrongful entry in or on a vehicle not owned or operated into, or invasion of the right of private by you, and that condition was created by occupancy of a room, dwelling or premises the "loading or unloading" of that vehicle that a person or organization occupies, by any insured; committed by or on behalf of its owner, (2) The existence of tools, uninstalled landlord or lessor; equipment or abandoned or unused
d. Oral, written or electronic publication, in any materials; or manner, of material that slanders or libels a
(3) Products or operations for which the
person or organization or disparages a
classification, listed in the Declarations or
person's or organization's goods, products or in a policy Schedule, states that productsservices;
completed operations are subject to the 24."Your product":
General Aggregate Limit. a. Means:
20."Property damage" means: (1) Any goods or products, other than real a. Physical injury to tangible property, including property, manufactured, sold, handled, all resulting loss of use of that property. All distributed or disposed of by:
such loss of use shall be deemed to occur at (a) You;
the time of the physical injury that caused it; (b) Others trading under your name; or or (c) A person or organization whose b. Loss of use of tangible property that is not business or assets you have acquired; physically injured. All such loss of use shall and
be deemed to occur at the time of the
"occurrence" that caused it. (2) Containers (other than vehicles), materials, parts or equipment furnished in As used in this definition, computerized or connection with such goods or products. electronically stored data, programs or software are not tangible property. Electronic data means b. Includes information, facts or programs: (1) Warranties or representations made at a. Stored as or on; any time with respect to the fitness, quality, durability, performance or use of b. Created or used on; or "your product"; and
c. Transmitted to or from; (2) The providing of or failure to provide computer software, including systems and warnings or instructions. applications software, hard or floppy disks, CDc. Does not include vending machines or other ROMS, tapes, drives, cells, data processing property rented to or located for the use of devices or any other media which are used with others but not sold. electronically controlled equipment.
25."Your work":
21."Suit" means a civil proceeding in which
damages because of "bodily injury", "property a. Means:
damage" or "personal and advertising injury" to (1) Work or operations performed by you or which this insurance applies are alleged. "Suit" on your behalf; and includes: (2) Materials, parts or equipment furnished in a. An arbitration proceeding in which such connection with such work or operations. damages are claimed and to which the b. Includes insured must submit or does submit with our consent; or (1) Warranties or representations made at
any time with respect to the fitness, b. Any other alternative dispute resolution quality, durability, performance or use of proceeding in which such damages are "your work", and claimed and to which the insured submits with our consent. (2) The providing of or failure to provide warnings or instructions. 22."Temporary worker" means a person who is furnished to you to substitute for a permanent
"employee" on leave or to meet seasonal or
short-term workload conditions.
23."Volunteer worker" means a person who
a. Is not your "employee";
b. Donates his or her work;
c. Acts at the direction of and within the scope
of duties determined by you; and
d. Is not paid a fee, salary or other
compensation by you or anyone else for their
work performed for you.
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IRONSHORE SPECIALTY INSURANCE COMPANY
175 Berkeley Street
Boston, MA 02116
Toll Free: (877) IRON411
Insured Name: Reed Family Companies
Policy Number: ICELLUW00167493
CONTRACTORS ENVIRONMENTAL LEGAL LIABILITY (CELL)
TABLE OF CONTENTS
PAGE
SECTION I – COVERAGES 2
COVERAGE SPECIFIC INSURING AGREEMENTS 2
COVERAGE PART I – Coverage Specific Insuring Agreements and Exclusions 2 Coverage A: Contractors Pollution Liability 2
Coverage B: Pollution Liability during Transportation 2 Coverage C: Non-Owned Site Pollution Liability 3
Coverage D: Time-Element Pollution Liability 3
Coverage E: Image Restoration Expenses 3
Coverage F: Disinfection Event Expenses 4
Coverage G: Pre-Claim Event Expenses 4
COMMON INSURING AGREEMENTS 4
SUPPLEMENTARY PAYMENTS 5
COMMON EXCLUSIONS 6
SECTION II – WHO IS AN INSURED 9
SECTION III – LIMITS OF INSURANCE AND DEDUCTIBLE 10
SECTION IV – CONDITIONS 11
SECTION V – DEFINITIONS 16
IE.COV.CELL.001 (07/18) Includes copyrighted material of Insurance Services Offices, Inc. with its permission.