Scotts Valley City Council
June 17, 2026

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 $ 23,481,012
Plus: Assets $ 5,579,590
Less: Liabilities $ (3,927,278)
Ending Fund Balance $ 25,133,324
Adjusting Cash to Ending Fund Balance

City of Scotts Valley
Changes in Total Fund Balance
For the month ended April 30, 2026
Equity
Fund Description
Beginning Fund
Balance
07/01/2025
Increase /
(Decrease) JulyMarch
Current Period
Revenue
Current Period
Expenditure
Fund Balance as
of 04/30/2026
General Fund
1 General Fund 3,258,974 (825,202) 3,326,823 (1,775,017) 3,985,578 6 Equipment Replacement Reserve 960,604 15,862 1,634 - 978,100 Recreation Funds (4, 28, 123) (92,151) (320,321) 25,092 (83,332) (470,712) Subtotal General Funds 4,035,277 (1,129,661) 3,353,549 (1,858,349) 4,492,967 General Capital Improvement Fund
150 Major Capital Projects 841,873 (2,407,346) - (89,303) (1,654,776) 151 Capital Outlay Projects 6,589 (235,446) - (71,526) (300,383) Subtotal Capital Improvement Fund 848,462 (2,642,792) - (160,829) (1,955,159) Special Revenue Fund - Development Impact Fees
7 Drainage Construction Impact Fees 143,947 10,577 - - 154,524 8 Traffic Impact Mitigation Fees 1,176,836 62,367 - - 1,239,203 9 Park & Recreation Facilities Impact Fees 1,786,209 101,517 - - 1,887,726 21 General Facility Impact Fees 6,202 2,204 - - 8,406
27 Police Facility Building Impact Fees 410,308 17,147 - - 427,455 86 Library Impact Fees 213,991 10,852 - - 224,843
Subtotal Special Revenue Funds - Development Impact F 3,737,494 204,664 - - 3,942,158 Special Revenue Fund
2 Recycling/Environment 198,335 (71,929) - (15,559) 110,847 3 Gas Tax 1,173,854 263,842 24,201 - 1,461,897
5 SMIP Fees 5,722 (2,313) 609 (910) 3,108
17 Home Grant Program 511,064 3,379 - - 514,443
19 Affordable Housing 4,546,602 120,371 - (597,675) 4,069,298 24 Lennar Funds 621,150 - - - 621,150
31 STP Exchange Projects - - - - -
33 Tree Replacement 55,416 1,680 440 - 57,536
35 Green Building Funding 624,993 51,169 233 - 676,395
36 Disability Compliance 25,919 3,215 128 (13) 29,249
50 Pinewood Estates Maint. Dist. 222 757 - (144) 835
51 Mt. Hermon Traffic Mitigation 162,706 4,951 - - 167,657 77 Skypark Landscape Maint. Dist. (3,988) (582) - (1,240) (5,810) 78 Skypark Landscape Maint. Dist. Insurance 562,869 17,127 - - 579,996 88 Library Improvements (Measure S) 140 22,423 - - 22,563 89 Library - Cty MOE Excess Distribution 647,062 17,684 - - 664,746 115 Section 115 Set Aside - Pension 2,270,164 110,892 59,409 (397) 2,440,068 155 Measure D Sales Tax for Transportation 1,032,320 226,506 27,262 - 1,286,088 156 SB-1 (RMRA) 1,149,812 260,164 26,494 - 1,436,470
200 Quimby Act 204,508 6,223 - - 210,731
201 Measure Q - 101,106 - - 101,106
306 Supplemental Law Enforcement Services 156,585 125,610 - (373) 281,822 313 Youth Focused Programs 51,173 (338) - (50) 50,785
317 Community And Economic Grants 472,689 14,383 - - 487,072 Subtotal Special Revenue Funds - Other 14,469,318 1,276,320 138,776 (616,361) 15,268,053 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 2,570,201 2,688 (354,184) 4,542,884 11 Tertiary Operating (262,632) (183,192) 37,415 (30,022) (438,431) 12 Waterwater Treatment Facility Fee (DIF) 436,775 49,608 - - 486,383 14 Wastewater Capital Replacement Fund 237,817 (2,177,993) - (35,232) (1,975,408) Subtotal Wastewater Enterprise Funds 2,736,139 258,624 40,103 (419,438) 2,615,428 Total All Funds 26,896,567 (2,332,845) 3,532,428 (3,054,977) 25,133,324

City of Scotts Valley
Monthly Wire Payments
APRIL 2026
Date Vendor Description Amount
4/3/2026 Payroll Payroll 04/03/2026 $ 298,880.69
4/3/2026 PARS Payroll Deductions $ 17.48
4/3/2026 SVPOA Payroll Deductions $ 228.00
4/3/2026 PORAC Payroll Deductions $ 641.25
4/3/2026 SEIU Payroll Deductions $ 575.38
4/3/2026 COPE Payroll Deductions $ 10.00
4/3/2026 ICMA Payroll Deductions $ 13,375.72
4/3/2026 Health Equity (FSA) Payroll Deductions $ 1,312.51 4/3/2026 Fallen Officer Payroll Deductions $ 5.00
4/6/2026 CalPERS CalPERS Health $ 154,677.80
4/6/2026 CalPERS CalPERS - RA Fee $ 200.00
4/6/2026 CalPERS CalPERS Pension 03/20 PR $ 62,074.74
4/7/2026 City of Santa Cruz Town Center Lease Payment $ 594,121.13 4/15/2026 Bank of America Bank Fees $ 1,225.22
4/17/2026 Payroll Payroll 04/17/26 $ 292,867.46
4/17/2026 PARS Payroll Deductions $ 177.47
4/17/2026 SVPOA Payroll Deductions $ 228.00
4/17/2026 LEGAL Payroll Deductions $ 1,100.00
4/17/2026 COPE Payroll Deductions $ 10.00
4/17/2026 ICMA Payroll Deductions $ 13,277.93
4/17/2026 Health Equity (FSA) Payroll Deductions $ 1,312.51 4/17/2026 Fallen Officer Payroll Deductions $ 5.00
4/24/2026 CalPERS CalPERS Pension 04/03 PR $ 65,758.25
4/27/2026 CalPERS CalPERS UAL $ 188,768.92
4/29/2026 Payroll Payroll 05/01/26 $ 333,713.79
$ 2,024,564.25

Check Number Check Date Vendor Name Check Amount
135789 04/03/2026 ACE PORTABLE SERVICES $ 2,206.43
135790 04/03/2026 ALVARO SAMUEL OLVERA INGINUEZ $ 1,584.52 135791 04/03/2026 APGN INC $ 21,124.66
135792 04/03/2026 AT&T $ 1,795.47
135793 04/03/2026 BAY TREE, LLC $ 4,604.58
135794 04/03/2026 BAYSIDE OIL II INC $ 130.00
135795 04/03/2026 BENJAMIN STANDEN $ 231.00
135796 04/03/2026 BODY BY HANK INC $ 3,014.58
135797 04/03/2026 BRANDINGOUT LLC $ 118.23
135798 04/03/2026 BRASS KEY LOCKSMITH $ 326.96
135799 04/03/2026 BRIAN MAILEY ELECTRIC INC. $ 2,505.00 135800 04/03/2026 CAL-WEST LIGHTING & SIGNAL INC $ 4,138.15 135801 04/03/2026 CARMEN WATSON $ 25.73
135802 04/03/2026 CITY OF SAN JOSE $ 4,937.00
135803 04/03/2026 CLEAN SPACE CLEANING, INC. $ 261.00
135804 04/03/2026 COAST TO COAST $ 4,000.00
135805 04/03/2026 COMCAST $ 1,154.84
135806 04/03/2026 COMPUTERSMITHS LLC $ 2,345.00
135807 04/03/2026 COUNTY OF SANTA CRUZ $ 33,000.90
135808 04/03/2026 DARSHANA CROSKREY $ 74.22
135809 04/03/2026 EWING IRRIGATION PRODUCTS $ 371.38
135810 04/03/2026 FERGUSON ENTERPRISES, LLC #795 $ 116.05 135811 04/03/2026 FIRST ALARM $ 144.03
135812 04/03/2026 FOREVER FIREWOOD, INC. $ 14,144.00
135813 04/03/2026 GOLDFARB LIPMAN ATTORNEYS $ 1,935.50
135814 04/03/2026 GRAINGER $ 2,156.91
135815 04/03/2026 HERC RENTALS $ 2,626.11
135816 04/03/2026 HINDERLITER, DE LLAMAS & ASSOC $ 2,720.49 135817 04/03/2026 HOSE SHOP $ 608.42
135818 04/03/2026 JAYSON RUTHERFORD $ 251.00
135819 04/03/2026 KENNEDY-JENKS CONSULTANTS $ 35,231.76 135820 04/03/2026 KEVIN LARSON $ 275.00
135821 04/03/2026 LAND TRUST OF SANTA CRUZ CNTY $ 20,000.00 135822 04/03/2026 LEAGUE OF CA CITIES $ 900.00
135823 04/03/2026 MAR-KEN INTERNATIONAL POLICE $ 300.00 135824 04/03/2026 MID VALLEY SUPPLY $ 2,981.62
135825 04/03/2026 MISCOWATER $ 12,629.90
135826 04/03/2026 MISSION UNIFORM SERVICE $ 390.38
135827 04/03/2026 MONTEREY BAY ANALYTICAL SVCS $ 5,012.50 135828 04/03/2026 NBS GOVERNMENT FINANCE GROUP $ 3,275.36 135829 04/03/2026 OLIN CORPORATION AS SOLE $ 5,316.44
135830 04/03/2026 OPERATIONAL TECHNICAL SERVICES $ 8,116.35 135831 04/03/2026 PHILLIP D NEUMAN $ 7,480.51

135832 04/03/2026 PHOENIX GROUP $ 22.24
135833 04/03/2026 PRODESSE PROPERTY GROUP $ 5,378.40
135834 04/03/2026 RALEY'S $ 52.62
135835 04/03/2026 RDO EQUIPMENT CO. $ 159.85
135836 04/03/2026 ROD MARKELL $ 1,974.00
135837 04/03/2026 ROSS RECREATION EQUIPMENT INC. $ 9,991.06 135838 04/03/2026 S.V. WATER DISTRICT $ 5,187.71
135839 04/03/2026 SAN LORENZO VALLEY WATER DISTR $ 169.87 135840 04/03/2026 SANTA CRUZ COUNTY $ 14,650.20
135841 04/03/2026 SCARBOROUGH LUMBER $ 831.95
135842 04/03/2026 SCOTTS VALLEY SPRINKLER $ 510.99
135843 04/03/2026 SHELTON ROOFING $ 1,000.00
135844 04/03/2026 SOUTHLAND INDUSTRIES $ 783.00
135845 04/03/2026 STRATEGIC GOVERNMENT RESOURCES $ 4,335.00 135846 04/03/2026 SUPERIOR ALARM COMPANY $ 96.00
135847 04/03/2026 SWEDBERG ELECTRIC INC. $ 6,545.69
135848 04/03/2026 SYCAL ENGINEERING INC $ 7,935.54
135849 04/03/2026 THE PIED PIPER INC. $ 70.50
135850 04/03/2026 TRIAD ELECTRIC $ 8,944.00
135851 04/03/2026 USA BLUE BOOK $ 129.97
135852 04/03/2026 VISIT SANTA CRUZ COUNTY $ 3,656.66
135853 04/03/2026 WAGE WORKS $ 125.00
135854 04/03/2026 WVP of California PC $ 68.32
135855 04/10/2026 AGILE OCCUPATIONAL MEDICINE $ 3,020.00 135856 04/10/2026 ANDERSON PACIFIC ENG INC. $ 44,173.83 135857 04/10/2026 ASSOCIATED SERVICES CO. $ 36.60
135858 04/10/2026 BATTERIES + BULBS #314 $ 2,909.09
135859 04/10/2026 BRISHAN INC. $ 12,561.81
135860 04/10/2026 BUSINESS WITH PLEASURE $ 2.18
135861 04/10/2026 CALIFORNIA COAST UNIFORM CO $ 161.64
135862 04/10/2026 CEN-CON, INC. $ 40,063.00
135863 04/10/2026 CENTRAL HOME SUPPLY $ 776.35
135864 04/10/2026 CORIE L. ASCANI, PSY.D. $ 500.00
135865 04/10/2026 CSG CONSULTANTS, INC $ 17,591.50
135866 04/10/2026 CSG CONSULTANTS, INC $ 15,482.00
135867 04/10/2026 CSG CONSULTANTS, INC $ 2,713.75
135868 04/10/2026 DARSHANA PATEL-CROSKREY $ 36.99
135869 04/10/2026 DUNCAN AUTO TECH $ 853.78
135870 04/10/2026 ENVIRONMENTAL INNOVATIONS $ 9,092.64
135871 04/10/2026 ERNIE'S AUTO CENTER $ 248.59
135872 04/10/2026 ERNIE'S AUTO CENTER $ 109.43
135873 04/10/2026 ERNIE'S AUTO CENTER $ 40.25
135874 04/10/2026 FEDERAL EXPRESS $ 28.87
135875 04/10/2026 GRAINGER $ 3,797.85

135876 04/10/2026 HACH COMPANY $ 9,994.68
135877 04/10/2026 JOANNA HAROS $ 254.85
135878 04/10/2026 K & D LANDSCAPING, INC. $ 3,711.00
135879 04/10/2026 KATI KING $ 1,508.14
135880 04/10/2026 MISSION UNIFORM SERVICE $ 976.60
135881 04/10/2026 MONTEREY BAY ANALYTICAL SVCS $ 1,367.00 135882 04/10/2026 MUTUAL OF OMAHA $ 1,358.25
135883 04/10/2026 NATIONAL COMTEL NETWORK INC. $ 21.68
135884 04/10/2026 OPERATIONAL TECHNICAL SERVICES $ 2,951.40 135885 04/10/2026 PETERSON POWER SYSTEMS, INC. $ 10,635.94 135886 04/10/2026 PHILLIP D NEUMAN $ 36,410.71
135887 04/10/2026 PRINICPAL LIFE INSURANCE CO $ 8,237.98 135888 04/10/2026 PURETEC INDUSTRIAL WATER $ 64.44
135889 04/10/2026 SCARBOROUGH LUMBER $ 1,187.08
135890 04/10/2026 SCOTTS VALLEY SPRINKLER $ 320.43
135891 04/10/2026 STANDARD INSURANCE COMPANY $ 991.62
135892 04/10/2026 STERLING WATER TECHNOLOGIES $ 2,880.00 135893 04/10/2026 STRATEGIC GOVERNMENT RESOURCES $ 5,992.50 135894 04/10/2026 SUMMIT UNIFORMS $ 275.63
135895 04/10/2026 TELECOMMUNICATIONS $ 6,666.24
135896 04/10/2026 TORO PETROLEUM CORP $ 7,742.32
135897 04/10/2026 U.S. BANK CORPORATE $ 17,002.87
135898 04/10/2026 U.S. POSTMASTER $ 500.00
135899 04/10/2026 VERDE DESIGN $ 89,303.36
135900 04/10/2026 WEX BANK $ 9,432.19
135901 04/20/2026 ACCENT CLEAN & SWEEP INC $ 5,478.00
135902 04/20/2026 ALVAREZ IND INC CLEAN BLDG $ 451.00
135903 04/20/2026 AMAZON CAPITAL SERVICES $ 1,760.28
135904 04/20/2026 AT&T $ 65.15
135905 04/20/2026 AT&T MOBILITY $ 1,790.52
135906 04/20/2026 BRASS KEY LOCKSMITH $ 1,817.90
135907 04/20/2026 BRINK'S AWARDS & SIGNS $ 699.66
135908 04/20/2026 BUSINESS WITH PLEASURE $ 334.96
135909 04/20/2026 CALIFORNIA DEPARTMENT OF $ 11,137.00
135910 04/20/2026 CARMEL AREA WASTEWATER DIST $ 6,589.00 135911 04/20/2026 COMCAST $ 777.68
135912 04/20/2026 COMCAST $ 1,050.55
135913 04/20/2026 CRYSTAL SPRINGS WATER CO $ 392.20
135914 04/20/2026 CSG CONSULTANTS, INC $ 868.25
135915 04/20/2026 DARRYL PANG $ 375.00
135916 04/20/2026 DAWN BANKS $ 313.80
135917 04/20/2026 ENTERPRISE FM TRUST $ 13,542.79
135918 04/20/2026 FERNANDO MENDOZA $ 500.00
135919 04/20/2026 GOLDFARB LIPMAN ATTORNEYS $ 1,580.00

135920 04/20/2026 GREEN WASTE RECOVERY,INC $ 10,375.86
135921 04/20/2026 ISAIAH PEKARY $ 1,903.30
135922 04/20/2026 LEAF CAPITAL FUNDING LLC $ 806.54
135923 04/20/2026 LLOYD'S TIRE SERVICE INC. $ 1,490.52
135924 04/20/2026 LOGAN & POWELL, LLP $ 17,414.77
135925 04/20/2026 LT MUNICIPAL CONSULTANTS $ 3,800.00
135926 04/20/2026 MARY LOUISE DEFALCO $ 57.00
135927 04/20/2026 MCCAMPBELL ANALYTICAL, INC. $ 420.00
135928 04/20/2026 MISSION UNIFORM SERVICE $ 376.40
135929 04/20/2026 MONTEREY BAY ANALYTICAL SVCS $ 297.00 135930 04/20/2026 O'REILLY AUTOMOTIVE,INC $ 162.32
135931 04/20/2026 PACIFIC GAS & ELECTRIC CO $ 57,731.25 135932 04/20/2026 PETTY CASH - LAUREN LAMBERT $ 153.33
135933 04/20/2026 S.V. WATER DISTRICT - BULK $ 116.25
135934 04/20/2026 SANTA CRUZ COUNTY INFORMATION $ 4,980.00 135935 04/20/2026 SCARBOROUGH LUMBER $ 569.36
135936 04/20/2026 SCOTTS VALLEY SPRINKLER $ 901.38
135937 04/20/2026 SHARRON BARTH $ 126.00
135938 04/20/2026 STATE WATER RESOURCES CONTROL $ 253.00 135939 04/20/2026 STERICYCLE INC $ 269.98
135940 04/20/2026 THE BANK OF NEW YORK MELLON $ 1,700.00 135941 04/20/2026 THE PIED PIPER INC. $ 155.50
135942 04/20/2026 THOMSON REUTERS-WEST $ 416.30
135943 04/20/2026 TRITON CONSTRUCTION $ 1,265.00
135944 04/20/2026 VISIT SANTA CRUZ COUNTY $ 22,763.22
135945 04/20/2026 WIZIX TECHNOLOGY GROUP, INC $ 312.65
135946 04/20/2026 YOGA FOR ALL MOVEMENT $ 117.00
135947 04/24/2026 ACC BUSINESS $ 1,232.09
135948 04/24/2026 AFLAC-FLEX ONE $ 883.70
135949 04/24/2026 ALLISON PFEFFERKORN $ 230.18
135950 04/24/2026 ALVAREZ IND INC CLEAN BLDG $ 1,110.00 135951 04/24/2026 ARIELLA LAVER $ 153.00
135952 04/24/2026 ASSOCIATED SERVICES CO. $ 133.48
135953 04/24/2026 AT&T $ 287.87
135954 04/24/2026 BATTERIES + BULBS #314 $ 19.65
135955 04/24/2026 COMPUTERSMITHS LLC $ 203.75
135956 04/24/2026 COUNTY OF SANTA CRUZ $ 130.00
135957 04/24/2026 DEPT OF CONSERVATION $ 910.46
135958 04/24/2026 DEPT OF JUSTICE $ 32.00
135959 04/24/2026 DKF SOLUTIONS GROUP LLC $ 2,340.00
135960 04/24/2026 ENTENMANN-ROVIN CO $ 89.91
135961 04/24/2026 GOOD CITY COMPANY $ 3,010.00
135962 04/24/2026 GUY R. REIMCHE $ 5,718.38
135963 04/24/2026 JENNIFER DUNBAR $ 209.00

135964 04/24/2026 KATI KING $ 673.07
135965 04/24/2026 LC ACTION POLICE SUPPLY $ 507.05
135966 04/24/2026 LEAF CAPITAL FUNDING LLC $ 806.54
135967 04/24/2026 LIEBERT CASSIDY WHITMORE $ 2,199.00
135968 04/24/2026 LOGAN & POWELL, LLP $ 11,425.26
135969 04/24/2026 MONTEREY BAY ECONOMIC $ 5,000.00
135970 04/24/2026 MUTUAL OF OMAHA $ 1,298.25
135971 04/24/2026 PHOENIX GROUP $ 25.50
135972 04/24/2026 PRINICPAL LIFE INSURANCE CO $ 7,917.61 135973 04/24/2026 RYAN BIAGGI $ 500.00
135974 04/24/2026 SANTA CRUZ CO HEALTH SERVICES $ 852.50 135975 04/24/2026 SANTA CRUZ COUNTY LAW $ 50.00
135976 04/24/2026 STRATEGIC GOVERNMENT RESOURCES $ 5,610.00 135977 04/24/2026 THE BRIEFING ROOM LLC $ 1,128.74
135978 04/24/2026 U.S. BANK CORPORATE $ 15,072.83
135979 04/24/2026 URBAN FIELD STUDIO OAKLAND $ 1,512.50 135980 04/27/2026 MHHD PARTNERS LLC $ 30,462.96
135981 04/27/2026 SCARBOROUGH LUMBER $ 2,000.22
135982 04/27/2026 SCOTTS VALLEY SPRINKLER $ 540.84
$ 943,901.62

AGENDA ITEM 6.

DATE: 6/17/2026
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 6/17/2026
TO: Honorable Mayor and City Council
FROM: Rodolfo Onchi, Public Works Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Award Contract to Mathews General Construction and Engineering for the Granite Creek Road Culvert Replacement Project No. P26-001 and Authorize the City Manager to Execute a Contract in an Amount Not to Exceed $171,958.00

SUMMARY OF ISSUE
The City is proposing to replace an existing 12-inch corrugated metal pipe crossing Granite Creek Road. The existing pipe is located at approximately 37°03'08.9"N, 121°59'52.6"W in the east side of City of Scotts Valley.

The existing culvert consists of a 12-inch corrugated metal pipe and associated headwalls. Over time, the pipe has corroded and deteriorated to the point of failure. As a result, water is no longer being fully conveyed through the pipe and is instead bypassing the pipe and flowing beneath it. This condition creates a risk of continued erosion, undermining of the roadway section, and further deterioration of the drainage crossing if not corrected.

The proposed project will replace the failed culvert and associated improvements with a new 12-inch Reinforced Concrete (RCP) pipe, new headwalls, and rock slope protection. The project is intended to restore the proper drainage function of the crossing, protect the roadway, and reduce the potential for future damage to Granite Creek Road.

The project is preventative in nature and is intended to avoid further deterioration of the roadway and drainage facility. If the failed culvert is not replaced, water may continue to bypass the pipe and undermine the roadway section, potentially resulting in a larger repair, increased construction cost, traffic disruption, or emergency response. Completing the work during the summer, when the drainage area is dry, provides the City with the best opportunity to complete the project efficiently and with reduced risk.

Project for public bidding opened on March 24, 2026. Bids were due and publicly opened on April 28, 2026. A total of ten (10) bids were received from licensed contractors.

A summary of the bids received is provided below:

Bidder Amount of Bid
Mathews General Engineering & Construction $171,958.00

Conley General Engineering $230,425.00
M. Kelly Construction $232,000.38
Pacific Coast Construction $232,455.00
Pacific Underground $235,750.00
DACO Construction General Engineering
Contractor
$250,192.00
Anderson Pacific Engineering $252,251.00
Synergy Construction $270,200.00
American Enviro Services, Inc. $287,899.00
Gordon N. Ball, Inc. $361,250.00
Following review of the bid proposals, staff determined that Mathews General Engineering & Construction 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 Mathews General Engineering & Construction 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 Summer 2026 and is expected to be completed by late Fall 2026, weather and field conditions permitting.

FISCAL IMPACT
Funding for the Granite Creek Road Culvert Replacement Project is included in the FY 2026/27 Capital Improvement Program budget. There is no impact to the General Fund.

STAFF RECOMMENDATION
Staff recommends that the City Council:

1. Award the contract for the Granite Creek Road Culvert Replacement Project to Mathews General Engineering & Construction as the lowest responsive and responsible bidder in the amount of $171,958.00

2. Authorize a 20% construction contingency in the amount of $34,391.60, for a total project authorization not to exceed $206,349.60; and

3. Authorize the City Manager to execute the construction contract and approve change orders within the authorized contingency amount.

TABLE OF CONTENTS

1. Resolution No. 2093_Contract Award Granite Culvert Road Replacement Project

2. Granite-Creek-Road-Culvert-Replacement contract

3. Granite Creek Road Culvert Replacement Projec_Mathews General Engineering and Con_Insurance

RESOLUTION NO. 2093

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY

AWARDING A CONSTRUCTION CONTRACT TO MATHEWS GENERAL ENGINEERING & CONSTRUCTION FOR THE GRANITE CREEK ROAD CULVERT REPLACEMENT PROJECT (PROJECT NO. P26-001), AUTHORIZING A CONSTRUCTION

CONTINGENCY, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE

CONTRACT AND APPROVE CHANGE ORDERS WITHIN THE AUTHORIZED

CONTINGENCY
WHEREAS, the City of Scotts Valley identified the need to replace a failed 12- inch corrugated metal pipe culvert crossing located on Granite Creek Road to restore proper drainage function, protect the roadway, and reduce the potential for future damage; and
WHEREAS, the existing culvert has deteriorated due to corrosion and is no longer adequately conveying stormwater, resulting in water bypassing the pipe and creating a risk of erosion and roadway undermining; and WHEREAS, the proposed Granite Creek Road Culvert Replacement Project (Project No. P26-001) includes installation of a new 12-inch reinforced concrete pipe, new headwalls, and rock slope protection improvements; and WHEREAS, the Project was publicly advertised for competitive bidding on March 24, 2026, and bids were received and publicly opened on April 28, 2026; and WHEREAS, Mathews General Engineering & Construction submitted the lowest responsive and responsible bid in the amount of One Hundred Seventy-One Thousand Nine Hundred Fifty-Eight Dollars ($171,958.00); and
WHEREAS, City staff reviewed the bid for responsiveness, contractor licensing, references, and compliance with all project specifications and requirements and determined the bid to be competitive and consistent with current market conditions; and WHEREAS, funding for the Granite Creek Road Culvert Replacement Project is included in the Fiscal Year 2026/27 Capital Improvement Program budget and there is no impact to the General Fund.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED:

1. The City Council hereby awards the construction contract for the Granite Creek Road Culvert Replacement Project (Project No. P26-001) to Mathews General Engineering & Construction as the lowest responsive and responsible bidder in the amount of $171,958.00.

2. The City Council hereby authorizes a construction contingency in the amount of $34,391.60, representing twenty percent (20%) of the contract amount.

3. The City Council hereby authorizes a total project construction authorization not to exceed $206,349.60.

4. The City Council hereby authorizes the City Manager to execute the construction contract with Mathews General Engineering & Construction and to 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 17th day of June 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

MATHEWS GENERAL ENGINEERING AND CONSTRUCTION
Section 1. Contract Intro/Parties
THIS AGREEMENT, made and concluded this June 17, 2026 between the CITY OF SCOTTS VALLEY, hereinafter called CITY, and Mathews General Engineering and Construction, 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, Rodolfo Onchi, PE/City Engineer, 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 Granite Creek Road Culvert Replacement, which said plans are hereby made a part of the contract. The work shall be completed 30 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.

General Services Agreement between
CITY OF SCOTTS VALLEY and MATHEWS GENERAL ENGINEERING AND CONSTRUCTION

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 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 $171,985.00 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 MATHEWS GENERAL ENGINEERING AND CONSTRUCTION

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 MATHEWS GENERAL ENGINEERING AND CONSTRUCTION

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.

SIGNATURE SIGNATURE
Acie Mathews, President

CONTRACTOR
Mali LaGoe

FULL NAME

DATE SIGNED DATE SIGNED
1098276
LICENSE NO.:

City Manager
TITLE

SIGNATURE SIGNATURE
Kirsten Powell

FULL NAME
Cathie Simonovich

FULL NAME

DATE SIGNED DATE SIGNED
City Attorney
TITLE
City Clerk
TITLE

Exhibits List
A - Mathews - Exhibit A - Granite Creek Culvert Replacement Project B - Mathews - Performance & Security Bonds - 06.08.26

Exhibit A
Mathews - Exhibit A - Granite Creek Culvert
Replacement Project

1 CITY OF SCOTTS VALLEY, CALIFORNIA

PART A - LEGAL AND PROCEDURAL DOCUMENT
A1- NOTICE TO BIDDERS
NOTICE IS HEREBY GIVEN by the City of Scotts Valley, State of California, that sealed formal bids for work in accordance with this invitation, Project Documents and Contract Documents will be received in the office of the Public Works Department located at 361 Kings Village Road, Scotts Valley, CA 95066, until 2:00p.m. on Tuesday, April 28, 2026 at which time they will be publicly opened and read for performing work as follows:

Furnishing all labor, materials, and equipment and performing all work necessary and incidental to the completion of the project known as
Granite Creek Road Culvert Replacement Project
SCOPE OF WORK: The scope of work to be performed under this contract consists of removal and replacement of the storm drainage pipe crossing at Granite Creek Road. The work includes, but not limited to:
• Remove and replace 57 linear feet of culvert under Granite Creek Road. • Construct two headwalls including rock slope protection. • Construct inlet and HMA dike.
• Traffic Control
• Temporary erosion control measures
The Contractor shall do all work incidental to legally and satisfactorily completing the work including the furnishing of all supervision, labor, materials, supplies, tools, equipment, transportation, utility coordination, applicable taxes, permits, and any other necessary or required incidental work essential to accomplish the work, whether or not shown on the plans or required in these specifications. The cost of all such incidental work shall be included in the various item of work and no additional or direct payment will be made therefore.

Time is of the essence for completing the required work. The time limit for the completion of all work shall be 30 working days after issuance of notification to proceed by Public Works Director or prior to the start of the rainy season on October 15th
, whichever comes first. Contractor shall commence work within fifteen (15) working days after issuance of notification to proceed by Public Works Director.

If Contractor shall be delayed in the work by the acts or neglect of Owner, or its employees or those under it by contract or otherwise, or by changes ordered in the work, or by strikes, lockouts by others, fire, unusual delay in transportation, unavoidable casualties or any causes beyond the Contractor's control, or by delay authorized by the Owner, or by any cause which the Owner shall decide to justify the delay, then the time of completion shall be extended for such reasonable time as the Owner may decide.

Liquidated damages shall be assessed in the amount of $2,800 for each calendar day the work remains incomplete beyond the time fixed above for completion. All Federal holidays and City holidays observed during construction shall not be included on the construction timeline specified. Time extension for weather and City delays will be granted accordingly.

OBTAINING OR INSPECTING CONTRACT DOCUMENTS: Each Bid shall be made in accordance with the Plans, Specifications and Contract Documents prepared therefore, and may be secured from the Public Works Department, 361 Kings Village Road, Scotts Valley, California, on weekdays, excluding city holidays, between the hours of 8:00 a.m. and 4:00 p.m. or from the City's website www.scottsvalley.org. or Central Coast Builders Association. To receive potential addendums and qualify to bid, Contractors must register with the Public Works Department.

2 A non-mandatory pre-bid walkthrough is scheduled on Tuesday, March 31, 2026, 10:00 a.mat 361 Kings Village Road, Scotts Valley, California 95066. Prospective Bidders may attend the optional pre-bid walkthrough to make a field reconnaissance of the project area prior to bidding to visualize and gain full understanding of the scope and extent of the work.

This contract may also be used to provide unforeseen conditions repairs upon short notice. Emergency situations may require excavating and working in trenches five (5) feet and over in depth. In order to ensure the safety of such operations, the successful Bidder must provide evidence of a current Cal/OSHA T-1 trenching and excavation permit five days after bid opening. The T-1 permit requirement applies to the Bidder and listing a subcontractor that possesses a T-1 permit in lieu of the Bidder does not fulfill the requirement.

This Contract will be subject to compliance monitoring and enforcement by the California Department of Industrial Relations, pursuant to Labor Code section 1771.4. Under California Labor Code section 1771. 1, as amended by SB 854, a contractor may not bid, nor be listed as a subcontractor, for any bid proposal submitted for a public work unless the contractor and its subcontractors are registered and qualified to perform public work pursuant to section 1725.5 of the Labor Code. The Bidder and its Subcontractors must be registered and qualified to perform public work pursuant to section 1725.5 of the Labor Code, subject to limited legal exceptions under Labor Code section 1771. 1.

SUBMISSION OF BIDS: The City contact noted on the cover sheet of this solicitation will receive sealed bids labeled as indicated within this Notice to Bidders until 2:00 p.m. on the bid due date at the office of the Public Works Department, 361 Kings Village Road, Scotts Valley, CA 95066. Bids received after this time will not be accepted. All bids should be addressed to the identified City contact and shall bear the title or name of the work to be constructed.

CONTRACTOR'S LICENSE CLASSIFICATION: In accordance with the Provisions of the California Public Contract Code Section 3300, Bidders shall be properly licensed to perform the Work and shall possess a CLASS A license. In accordance with the provisions of California Business and Professions Code Section 7028.15, a bid submitted to the City by a Contractor who is not licensed in accordance with Chapter 9 of the California Business and Professions Code shall be considered non-responsive and shall be rejected by the City.

BUSINESS LICENSE: The Contractor must obtain and comply with all of the requirements of the City Business License Ordinance, where applicable, before beginning work and through Contract Acceptance.

NONDISCRIMINATION: This Contract is subject to State and contract nondiscrimination and compliance requirements pursuant to Government Code, Section 12990 and shall be constructed and interpreted in compliance with said provisions.

BID SECURITY: Each bid must be accompanied by cash, a certified or cashier's check, or a bidder's bond in the sum of not less than ten percent (10%) of the total aggregate of the bid. The check or bond shall be made payable to the order of the City of Scotts Valley.

Pursuant to Section 4590 of the California Government Code, Contractor will be permitted, at Contractor's request and sole expense, to substitute securities of any monies withheld by City to ensure performance under the contract. Said securities will be deposited either with City or with a state or federally chartered band as escrow agent. Securities eligible for this substitution are those listed in Section 16430 of the California Government Code or bond or savings and loan certificates of deposit. Contractor shall be the beneficial owner of any securities substituted for monies withheld and shall receive any interest thereon.

WAGE RATE REQUIREMENTS AND DEPARTMENT OF INDUSTRIAL RELATIONS: In accordance with the provisions of California Labor Code Sections 1770, 1773, 1773.1, 1773.2, 1773.6, and 1773.7, the general prevailing rate of wages in the County which the Work is to be done has been determined by the Director of the California Department of Industrial Relations. These wages are set forth in the General Prevailing Wage

3 Rates for this project, available from the California Department of Industrial Relations' Internet web site at http://www.dir.ca.gov. The rates at the time of the bid advertisement date of a project will remain in effect for the life of the project is accordance with the California Code of Regulation, as modified and effective January 27, 1997. Each Contractor must comply with the Federal wage requirements of the Davis-Bacon Act. The higher of the two rates (State and Federal) must be paid to each person working on the project. Any contractor who is awarded a public works project and intends to use a craft or classification not shown on the general prevailing wage determinations, may be required to pay the wage rate of that craft or classification most closely related to it as shown in the general determination effective at the time of the call for bids.

Per SB 854, this project is subject to labor compliance monitoring and enforcement by the DIR. No contractor or subcontractor may be listed on a bid proposal for a public works project submitted on or after March 1, 2015 unless registered with the DIR pursuant to Labor Code Sections 1771.1(a)(1), 1725.5, and 1771.1(a).

No contractor may be awarded a contract for public work on a public works project (awarded on or after April 1, 2015) unless the contractor and all of its subcontractors are registered with the DIR pursuant to Labor Code 1725.5, see Labor Code 1771.1(b).

AWARD OF CONTRACT AND REJECTION OF BIDS: Bids will be considered for award by the Scotts Valley City Council. The City of Scotts Valley reserves the right after opening bids to reject any or all bids, to waive any informality (non-responsiveness) in a bid, or to make award to the lowest responsive, responsible Bidder and reject all other bids, as it may best serve the interest of the City.

4 CITY OF SCOTTS VALLEY

STATE OF CALIFORNIA
A2 - CONSTRUCTION AGREEMENT
THIS AGREEMENT, made and concluded tha2t
8_thday of April _, 20_26 between the CITY OF
SCOTTS VALLEY, hereinafter called CITY, and Mathews General Engineering and Construction_, hereinafter called CONTRACTOR.

ARTICLE I. 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, Granite Creek Road Culvert Replacement Project, 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 Granite Creek Road Culvert Replacement Project, which said plans are hereby made a part of the contract. The work shall be completed 30 working days after issuance of notification to proceed.

ARTICLE II. 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.

ARTICLE Ill. 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.

ARTICLE IV. 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 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.

ARTICLE V. CONTRACTOR shall be compensated for satisfactory completion of the work in compliance with the contract documents for the sum not to exceed $ 139,228 in accordance with the Bid Schedule outlined in the CONTRACTOR'S Bid and Bid Price Schedule, dated 04/28,202_6.

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

5 completing the work, and the whole thereof, in the manner and according to the plans and specifications, and the requirements of Engineer.

ARTICLES VI. 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.

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.

ARTICLE VII. 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.

ARTICLE VIII. 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

13. Standard Provisions

14. Standard Specifications dated 2024 and Standard Plans dated 2024 of the California Department of Transportation

6 15. Technical specifications

16. Plans entitled,

17. Insurance Certificate (See PART B - Technical Specifications for requirements)

18. Information for Bidders
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.

CONTRACTOR
By:

Date:

License No:
04/28/26
1098276

FOR CITY OF SCOTTS VALLEY
By:

Mali LaGoe, City Manager
ATTEST:

Date:

By:

Cathie Simonovich, City Clerk
APPROVED AS TO FORM:

By:

Kirsten Powell, City Attorney
Date:

Date:

7 BOND NO. OR10335-5

CITY OF SCOTTS VALLEY

STATE OF CALIFORNIA
A3 - BOND FOR FAITHFUL PERFORMANCE
WHEREAS, the City Council of the City of Scotts Valley, State of California, and Mathews General Engineering and Construction_, (herein designated as "Contractor") have entered into an agreement whereby contractor agrees to install and complete certain designated public improvements, which said agreement dated 04/28 , 2026_identified as Granite Creek Culvert Replacement, (the "Agreement") is hereby referred to and made a part hereof; and WHEREAS, Contractor is required under the terms of the Agreement to furnish a bond for the faithful performance of the Agreement.

NOW, THEREFORE, WE, the principals and Old republic surety company , as surety, are held and firmly bound unto the City of Scotts Valley, hereinafter called "City", in the penal sum of Twenty- Three Thousand Eight Hundred and eighty Dollars ($ 23,880 _) lawful money of the United States for the payment of which sum, well and truly made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these presents.

The condition of this obligation is such that if above-bounded Contractor, or their heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the said Agreement and any alteration thereof made as therein provided, on their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

As part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.

The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or to the specifications.

The surety shall provide City with thirty (30) days' written notice of Contractor's default prior to the surety terminating, suspending or revoking the bond.

IN WITNESS WHEREOF, this instrument has been duly executed by the principals and surety above names, on April 28TH ,2026.

Surety
Attorneys in Fact
Principal
Principal

8 BOND NO. OR10335-5

CITY OF SCOTTS VALLEY

STATE OF CALIFORNIA
A4 - BOND FOR SECURITY OF LABORERS AND MATERIAL PERSON
WHEREAS, the City Council of the City of Scotts Valley, State of California, and Mathews General Engineering and Construction , (herein designated as "principals") have entered into an agreement whereby principals agrees to install and complete certain designated public improvements, which said agreement dated April 28TH , 2 02_6 , and identified asGranite Creek Culvert Replacemet project hereby referred to and made a part hereof; and
,(the "Agreement") is
WHEREAS, under the terms of said Agreement, principals are required before entering upon the performance of the work, to file a good and sufficient payment bond with the City of Scotts Valley to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California.

NOW, THEREFORE, said principals and the undersigned as corporate surety, are held firmly bound unto the City of Scotts Valley and all contractors, subcontractors, laborers, material person and other persons employed in the performance of the aforesaid Agreement and referred to in the aforesaid Civil Code in the sum of Twenty- Three Thousand
Eight Hundred and eighty Dollars ($ 23,880 _), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that said surety will pay the same in an amount not exceeding the amount herein above set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees including reasonable attorney's fees, incurred by City in successfully enforcing such obligation to be awarded and fixed by the Court and to be taxed as costs and to be included in the judgment therein rendered.

IT IS HEREBY EXPRESSLY STIPULATED AND AGREED that this bond shall inure to the benefit of any and all persons, companies and corporations entitled to file claims under Title 15 (commencing with Section 3082) of Part 4 Division 3 of the right to action to them or their assigns in any suit brought upon this bond.

Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect. Surety shall provide City with thirty (30) days' written notice of Principal's default prior to Surety terminating, suspending or revoking the bond.

The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of said Agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration or addition.

IN WITNESS WHEREOF, this instrument has been duly executed by the principals and surety above names, on April 28TH ,2026.

Surety
Attorneys in Fact
Principal

9 AS-PROPOSAL
To: CITY OF SCOTTS VALLEY,

COUNTY OF SANTA CRUZ,

STATE OF CALIFORNIA
(herein called Owner)
for the construction of
Public Works Project No. P26-001
Granite Creek Road Culvert Replacement Project
NAME OF BIDDER Mathews General Engineering and Construction BUSINESS P.O. BOX 1112 N Main st P.O. Box #105
CITY, STATE, ZIP Manteca CA 95336
BUSINESS STREET ADDRESS 1112 N Main st P.O. Box #105
(Please include even if P.O. Box used)
CITY, STATE, ZIP Manteca CA 95336
TELEPHONE NO: AREA CODE ( 209 ) 650-3614
FAX NO: AREA CODE (
CONTRACTOR LICENSE NO. 1098276
DIR CONTRACTOR REGISTRATION NO. 1000986331
PROPOSED SCHEDULE OF WORK:

Remove and replace 57 linear feet of culvert under Granite Creek Road, Construct two headwalls including rock slope protection, Construct inlet and HMA dike,Traffic Control, and Temporary erosion control measures

1. Pursuant to and in compliance with your Notice to Bidders and the contract documents relating to the construction of Granite Creek Road Culvert Replacement Project Addenda Nos. 1 _, 2 _, 3 _, the undersigned bidder, having become thoroughly familiar with the terms and conditions of the contract documents and with the local conditions affecting the performance and costs of the work at the place where the work is to be done, and having fully inspected the site in all particulars, hereby proposes and agrees to perform fully the work within the time stated in strict accordance with the contract documents (including the furnishing of any and all labor and materials) and do all the work required to construct and to complete said work in accordance with the contract documents.

2. It is understood that Owner reserves the right to reject this bid, but that this bid shall remain open and contractor shall not request that the bid be withdrawn for a period of sixty (60) days from the date prescribed for its opening.

3. Attached hereto and incorporated herein is the complete and entire list of subcontractors to be employed by the undersigned in the performance of the work.

10 4. If written notice of the acceptance of this bid is mailed or delivered personally to the undersigned within sixty (60) days after the date set for the opening of this bid, or at any time thereafter before it is withdrawn, the undersigned bidder shall execute and deliver the contract documents to Owner in accordance with this bid as accepted, and will also furnish and deliver to Owner the Performance Bond, Labor and Material person's Bond as specified and proof of insurance coverage as required in the General Conditions, all within ten (10) days after personal delivery or after deposit in the mails, of the notifications of acceptance of this bid. The above-mentioned bonds shall be satisfactory to and on the forms approved by Owner.

5. Notice of acceptance or request for additional information may be addressed to the undersigned at the address set forth below.

6. The undersigned declares that this bid is not made in the interest of or on behalf of any undisclosed person, partnership, company, association, organization or corporation; that the bid is genuine and not collusive or sham; that the undersigned has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid and has not directly or indirectly colluded or agreed with any bidder or anyone else to put in a sham bid or to refrain from bidding; that the undersigned has not directly or indirectly sought by agreement, communications or conference with anyone to fix said bid price or the bid price of any other bidder, or to fix any overhead, profit or cost element of such bid price or of that of any other bidder, or to secure any advantage against the City of Scotts Valley or anyone interested in the proposed contract; that the only persons or parties interested in this bid as principals are those named herein; that all statements contained in this bid are true; that the undersigned has not directly or indirectly submitted under sign's bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any other persons, partnership, corporation or association except to such person or persons as have a direct financial interest in bidder's general business; and that the undersigned has not accepted any bid from any subcontractor or material person through any bid depository, the By-Laws, Rules or Regulations of which prohibit or prevent the undersigned from considering any bid from any subcontractor or material person, which is not processed through said bid depository, or which may prevent any subcontractor or material person, which is not processed through said bid depository, or which may prevent any subcontractor or material person from bidding to any general contractor who does not use the facilities of or accept bids from or through such bid depository.

7. Bids are to be submitted for the entire work. The amount of the bid for comparison purposes will be the total of all items. The bidder shall set forth for each unit basis item of work a unit price and a total for the item, and for each lump sum item a total for the item, all in clearly legible figures in the respective spaces provided for that purpose. In the case of unit basis items, the amount set forth under the "Item Total" column shall be the product of the unit price bid and the estimated quantity for the item. In case of discrepancy between the unit price and the total set forth for a unit basis item, the unit price shall prevail, except as provided in (a) or (b), as follows:
(a) If the amount set forth as a unit price is unreadable or otherwise unclear, or is omitted, or is the same as the amount as the entry in the item total column, then the amount set forth in the item total column for the item shall prevail and shall be divided by the estimated quantity for the item and the price thus obtained shall be the unit price;
(b) (Decimal Errors) If the product of the entered unit price and the estimated quantity is exactly off by a factor of ten, one hundred, etc., or one-tenth, or one-hundredth, etc. from the entered total, the discrepancy will be resolved by using the entered unit price or item total, whichever most closely approximates percentage wise the unit price or item total in the CITY OF SCOTTS VALLEY's Final Estimate of cost.

If both the unit price and the item total are unreadable or otherwise unclear, or are omitted, the bid may be deemed irregular. Likewise if the item total for a lump sum item is unreadable or otherwise unclear, or is omitted, the bid may be deemed irregular unless the project being bid has only a single item and a clear, readable total bid is provided.

11 Symbols such as commas and dollar signs will be ignored and have no mathematical significance in establishing any unit price or item total or lump sums. Written unit prices, item totals and lump sums will be interpreted according to the number of digits and, if applicable, decimal placement. Cents symbols also have no significance in establishing any unit price or item total since all figures are assumed to be expressed in dollars and/or decimal fractions of a dollar. Bids on lump sum items shall be item totals only; if any unit price for a lump sum item is included in a bid and it differs from the item total, the items total shall prevail.

8. The undersigned certifies that the contract documents have been thoroughly read and understood and that, except as may be specifically noted and contained in addenda, there are no discrepancies or misunderstandings as to the meaning, purpose or intent of any provision in the contract documents or as to the interpretation of the same. The undersigned hereby incorporates by reference, the same as though set out in full, all provisions of the Notice to Bidders and Information for Bidders published by Owner and pertaining to the work described in this bid.

9. The undersigned has included with its bid submittal a proposed schedule of work, subject to modification by the Public Works Director, that identifies key project milestones and requirements including irrigation system repair; hydro-seeding; and watering, weeding and mowing schedules.

The foregoing provisions for the resolution of specific irregularities cannot be so comprehensive as to cover every omission, inconsistency, error or other irregularity which may occur in a bid. Any situation not specifically provided for will be determined in the discretion of the CITY OF SCOTTS VALLEY, and that discretion will be exercised in the manner deemed by the CITY OF SCOTTS VALLEY to best protect the public interest in the prompt and economical completion of the work. The decision of the CITY OF SCOTTS VALLEY respecting the amount of a bid, or the existence or treatment of an irregularity in a bid, shall be final.

Accompanying this bid is Bid Bond (insert words "cash", "cashier's check", "certified check" or "bidder's bond" as the case may be), in an amount equal to at least ten percent (10%) of the total of the bid.

The names of all persons interested in the foregoing bid as principals are as follows:

IMPORTANT NOTICE: If bidder or other interested person is corporation, give legal name of corporation, state where incorporated and names of the president and secretary thereof; if a partnership, give name of the firm, also names of all individual co-partners composing firm; if bidder or other interested person is an individual, give first and last names in full.

Acie Mathews President
NOTE: If bidder is a corporation, the legal name of the corporation shall be set forth above, together with the signature of the officer or officers authorized to sign contracts on behalf of the corporation; if bidder is a co-partnership, the name of the firm shall be set forth above, together with the signatures of the partner or partners authorized to sign contracts in behalf of the co-partnership; and if bidder is an individual, said bidder's signature shall be placed above.

12 CITY OF SCOTTS VALLEY

STATE OF CALIFORNIA
A6 - EXPERIENCE STATEMENT
The following outline is a record of the Bidder's recent experience in construction of a type similar in magnitude and character to that contemplated under this contract:

PROJECT OWNER, LOCATION & PHONE PROJECT CONTRACT AMOUNT Caltrans,San Mateo,CA,650-522-7300 Channel Excavation Los Trancos Creek 8+ Million Nevada City , Nevada City, CA, 417-448-5114 Nevada St. Over Deer Creek Bridge Replacement 6+ Million Herald,Herald, CA Alta Mesa Road Bridge Replacement 12+ Million

13 CITY OF SCOTTS VALLEY

STATE OF CALIFORNIA
A7 - GENERAL PROVISION

1.0 Definition of Terms
Whenever in these Specifications or in any documents or instruments in connection where these Specifications govern, the following terms or pronouns in place of them are used, and intent and meaning shall be interpreted as follows:

City of Scotts Valley, City, or Owner -The incorporated City of Scotts Valley, Santa Cruz County, California.

City Council or Council - The City Council of the City of Scotts Valley, acting either directly or through properly authorized agents, such agents acting within the scope of the particular duties entrusted to them.

Director of Public Works/City Engineer or Engineer - The Director of Public Works of the City of Scotts Valley, acting either directly or through properly authorized agents, such agents acting within the scope of the particular duties entrusted to them.

Contractor - The person or persons, co-partnership or corporation, private or municipal, who have entered into a contract with the City of Scotts Valley as party or parties of the second part, or his or their legal representatives. Any reference of a masculine nature shall imply either gender and is not intended to be discriminatory.

Specifications - The term specifications refer to the City Standard Specifications and the California Department of Transportation Standard Specifications 2024. In the event that there is a conflict, the City Standard Specifications take precedence.

2.0 Scope of Work

2.1 Intent of Specifications
The intent of these Specifications is to describe the details for the construction and completion of the work, which the Contractor undertakes to perform in accordance with the terms of the Contract. Where these Specifications describe portions of the work in general terms, but not in complete detail, it is understood that only the best general practice is to prevail and that only materials and workmanship of the first quality are to be used. Unless otherwise specified, the Contractor shall furnish all labor, materials, tools, equipment and incidentals, and do all the work involved in completing the contract in a satisfactory and workmanlike manner.

2.2 Final Clean Up
Before final inspection of the work, the Contractor shall clean the street, material sites and all ground occupied by him in connection with the work, of all rubbish, excess materials, false work, temporary structures and equipment. All parts of the work shall be left in a neat and presentable condition. Full compensation for final cleaning up will be considered as included in the prices paid for the various contract items of work, and no separate payment will be made therefore. Nothing herein, however, shall require the Contractor to remove warning and directional signs prior to final acceptance by the City.

2.3 Changes
The City reserves the right to make such alterations, deviations, additions to, or omissions from these Plans and Specifications, including the right to increase or decrease the quantity of any item or portion of the work or to omit any item or portion of the work as may be deemed by the Engineer to be required for the proper completion or construction of the work. A contract change order will not become effective until approved either by the City Public Works Director (if the amount of the change order is less than ten (10) percent

14 the contract amount) or by the City Manager (if the amount of the change order is greater than ten (10) percent of the contract amount).

Any such changes will be set forth in a contract change order which will specify, in addition to the work to be done in connection with the change made, adjustment of contract time, if any, and the basis of compensation for such work. A contract change order will not become effective until approved by the City Public Works Director.

The provisions of California Standard Specification (CSS) Section 9-1.06B (increased quantities) and 9-1.06C (decreased quantities) shall not be applicable to any contract items increased or decreased over 25 percent.

Upon receipt of an approved contract change order, the Contractor shall proceed with the ordered work. If ordered in writing by the Engineer, the Contractor shall proceed with the work so ordered prior to actual receipt of an approved contract change order therefore.
a. Procedure and Protest
A contract change order approved by the Engineer may be issued to the Contractor at any time.

Should the Contractor disagree with any terms or conditions set forth in an approved contract change order, which he has not executed, the Contractor shall submit a written protest to the Engineer within fifteen (15) days after the receipt of such approved contract change order. The protest shall state the point of disagreement, contract specification references, and if possible, the quantities and the costs involved. If a written protest is not submitted, payment will be made as set forth in the approved contract change order, and such payment shall constitute thereby. Such unprotested approved contract change orders will be considered as executed contract change orders.

Where protest concerning an approved contract change order relates to compensation, the compensation payable as specified or required by said contract change order to which such protest relates, will be determined by the Engineer in the same manner as if the work were to be paid for on a force account basis as provided in the paragraphs titled "Measurement and Payment" in these General Provisions; or such adjustment will be as agreed to by the Contractor and the Engineer. The Contractor shall keep full and complete records of the cost of such work and shall permit the Engineer to have such access thereto as necessary to assist in the determination of the compensation payable for such work.

Where protest concerning an approved contract change order relates to the adjustment of contract time for the completion of the work, the time to be allowed therefore will be determined as provided in paragraphs titled "Prosecution and Progress" in these General Provisions.

Proposed contract change orders may be presented to the Contractor for his/her consideration prior to approval by the Engineer. If the Contractor signifies his/her acceptance of the terms and conditions of such proposed contract change order by executing such document, and if such change order is approved by the Engineer and issued to the Contractor, payment in accordance with the provisions as to compensation therein set forth shall constitute full compensation for all work included therein or required thereby. A contract change order executed by the Contractor and approved by the Engineer is an executed contract change order. An approved contract change order shall supersede a proposed, but unapproved change order covering the same work.
b. Contract Items to be Omitted
If acceptable material is ordered by the Contractor for the omitted item prior to the date of notification of such omission by the Engineer and if orders for such material cannot be canceled, it will be paid for at the actual cost to the Contractor, excluding overhead and profit. In such case, the material paid for shall become the property of the City and the cost of any further handling will be paid for as extra work as provided in this Section. If the material is returnable to the vendor and if the Engineer so directs, the

15 material shall be returned, and the Contractor will be paid for charges made by the vendor for returning such materials. The cost of handling returned material will be paid for as extra work as provided in this Section. c.Extra Work
New and unforeseen work will be classed as extra work when determined by the Engineer that such work is not covered by any of the various items for which there is a bid price or by combinations of such items.

In the event portions of such are determined by the Engineer to be covered by some of the various items for which there is a bid price or combinations of such items, the remaining portion of such work will be classed as extra work. Extra work also includes work specifically designated as extra work in these Plans and Specifications.

The Contractor shall do such extra work and furnish material and equipment therefore upon receipt of an approved contract change order or other written order by the Engineer, and in the absence of such approved contract change order or other written order of the Engineer, he shall not be entitled to payment for such extra work. Where such extra work is ordered by a written order other than an approved contract change order, the Engineer will, as soon as practicable, issue an approved contract change order. The provisions in the paragraph titled "Procedure and Protest" in this Section shall be fully applicable to such subsequently issued contract change order.

Payment for extra work required to be performed pursuant to the provisions of this Article in the absence of an executed contract change order, will be made by force account and provided in the paragraph titled "Measurement and Payment" in these General Provisions or as agreed to by the Contractor and the Engineer.

2.4 Detours
The Contractor shall construct, maintain and remove detours for the use of public traffic as provided in the Standard Provisions, Technical Specifications or as shown on the Plans or as directed by the Engineer.

Payment for such work shall be considered as included in the price paid for Traffic Control of these Specifications and no additional compensation will be made therefore.

2.5 Use of Materials Found on the Work
The Contractor, with the approval of the Engineer, may use in the proposed construction such stone, gravel, sand, or other material suitable, in the opinion of the Engineer, as may be found in the excavation.

3.0 Control of Work

3.1 Authority of Engineer
The Engineer shall decide all questions which may arise as to the quality or acceptability of materials furnished and work performed and as to the manner of performance and rate of progress of work, all questions which arise as to the interpretation of these Plans and Specifications, all questions as to the acceptable fulfillment of the contract on the part of the Contractor and all questions as to compensation. His decision shall be final and he shall have authority to enforce and make effective such decisions and orders which the Contractor fails to carry out promptly.

3.2 Shop Drawings
Wherever called for in these Specifications or on the Drawings, or where required by the Engineer, the Contractor shall furnish to the Engineer for review, PDF of each shop drawing. The term "shop drawing" as used herein shall be understood to include detail design calculations, fabrication and installation drawings, lists, graphs, operation instructions, etc. Unless otherwise required, said drawings shall be submitted at a time sufficiently early to allow review of same by the Engineer, and to accommodate the rate of construction progress under the contract.

All shop drawing submittals shall be accompanied by the Engineer's standard shop drawing transmittal

16 form. A sample of the form will be provided following award of the contract. Any shop drawing submittal not accompanied by such a form, or where all applicable items on the form are not completed, will be returned for re-submittal. The ultimate responsibility for the accuracy and completeness of the information contained in the submittal shall remain with the Contractor.

Normally, a separate transmittal form shall be used for each specific item or class of material or equipment for which a submittal is required. Transmittal of shop drawings on various items using a single transmittal form will be permitted only when the items taken together constitute a manufacturer's "package" or are so functionally related that expediency indicates review of the group or package as a whole.

Within ten (10) working days after receipt of said prints, the Engineer will return prints of each drawing to the Contractor with his comments noted thereon. It is considered reasonable that the Contractor shall make a complete and acceptable submittal to the Engineer by the second submission of drawings. The Owner reserves the right to withhold monies due the Contractor to cover additional costs of the Engineer's review beyond the second submission.

If three prints of the drawing are returned to the Contractor marked "NO EXCEPTIONS TAKEN," formal revision of said drawings will not be required.

If one print of the drawing is returned to the Contractor marked "REVISE AND RESUBMIT," the Contractor shall revise said drawing and shall resubmit five (5) hard copies or one (1) PDF via e-mail of said revised drawing to the Engineer.

Fabrication of an item shall not commence before the Engineer has reviewed the pertinent shop drawings and returned copies to the Contractor marked either "NO EXCEPTIONS TAKEN" or "MAKE CORRECTIONS NOTED." Revisions indicated on shop drawings shall be considered as changes necessary to meet the requirements of the contract Drawings and Specifications and shall not be taken as the basis of claims for extra work. The Contractor shall have no claim for damages or extension of time due to any delay resulting from the Contractor's having to make the required revisions to shop drawings unless review by the Engineer of said drawings is delayed beyond a reasonable period of time and unless the Contractor can establish that the Engineer's delay in review of said drawings by the Engineer will be limited to checking for general agreement with the Specifications and Drawings, and shall in no way relieve the Contractor of responsibility for errors or omissions contained therein nor shall such review operate to waive or modify any provision contained in the Specifications or Contract Drawings. Fabricating dimensions, quantities or material, applicable code requirements, and other contract requirements shall be the Contractor's responsibility.

3.3 Conformity with Plans and Allowable Deviations
Finished surfaces in all cases shall conform with the lines, grades, cross-sections, and dimensions shown on the Plans. Deviations, other than specified tolerances from the Plans and working drawings as may be required by the exigencies of construction, will in all cases be determined by the Engineer.

3.4 Coordination and Interpretation of General Provisions and Plans These General Provisions, Standard Provisions, Plans, Contract Change Orders and all supplementary documents are essential parts of the contract and a requirement occurring in all. They are intended to be cooperative and to describe and provide for a complete work. Plans shall govern over General Provisions; Standard Provisions shall govern over both General Provisions and Plans. Technical Provisions shall govern over General Provisions, Standard Provisions and Plans.

Should it appear that the work to be done or any of the matters relative thereto are not sufficiently detailed or explained in these Plans and Specifications, the Contractor shall apply to the Engineer for such further explanations as may be necessary and shall conform to them as part of the contract. In the event of any doubt or question arising respecting the true meaning of these Plans and Specifications, references shall be made to the City Council, whose decisions thereon shall be final. In the event of any discrepancy between any drawing and the figures written thereon, the figures shall be taken as correct. Detail drawings shall prevail over general drawings.

17 3.5 Order of Work
When required by the Standard Provisions or Plans, the Contractor shall follow the sequence of operations as set forth therein.

Full compensation for conforming to such requirements will be considered as included in the prices paid for the various contract items of work, and no additional compensation will be allowed therefore.

3.6 Superintendence
The Contractor shall designate, before starting work, an authorized representative who shall have complete authority to represent and to act for the Contractor. Said authorized representative shall be present at the site of the work at all times while work is actually in progress on the contract and during periods when work is suspended, arrangements acceptable to the Engineer shall be made for any emergency work which may be required.

When the Contractor is comprised of two (2) or more persons, firms, partnerships or corporations functioning on a joint venture basis, said Contractor shall designate to the Engineer the name of their authorized representative who shall have supreme authority to direct the work and to whom orders will be given by the Engineer, to be received and obeyed by the Contractor.

Whenever the Contractor or his authorized representative is not present on any particular part of the work where it may be desired to give direction, orders will be given by the Engineer, which shall be received and obeyed by the Superintendent or foreman who may have charge of the particular work in reference to which the orders are given.

3.7 Inspection
The Engineer shall at all times have access to the work during its construction and shall be furnished with every reasonable facility for ascertaining that the materials and the workmanship are in accordance with the requirements and intentions of these Plans and Specifications. All work done and all materials furnished shall be subject to his inspection and approval.

Whenever the Contractor varies the period during which work is carried on each day, he shall give due notice to the Engineer so that proper inspection may be provided. Any work done in the absence of the Engineer will be subject to rejection.

Projects financed in whole or in part with State funds shall be subject to inspection at all times by the State Director of Public Works or his agents.

3.8 Samples and Tests
Materials furnished by the Contractor may be tested by the City of Scotts Valley or its authorized representative in accordance with commonly recognized standards of national organizations or such special methods and tests as are in use at the Laboratory of the Department of Transportation of the State of California.

Field tests of materials will be made by the Engineer when deemed necessary and these tests shall be made in accordance with standard practices.

The Contractor shall furnish, without charge, such samples of all materials as are requested by the Engineer.

No material shall be used until it has been approved by the Engineer. Samples will be secured and tested whenever necessary to determine the quality of the material.

Samples for testing local sources of material shall be taken by or in the presence of the Engineer. Otherwise, the same shall not be considered.

Promptly after the approval of the contract, the Contractor shall notify the Engineer of the proposed sources of supply of all materials to be furnished.

18 Whenever reference is made in these Specifications to standard specification or standard tests or requirements of the Laboratory of the Department of Transportation, the American Society for Testing Materials, the American Railway Engineering Association, the American Association of State Highway Officials, or other nationally recognized organizations, the reference shall be construed to mean the standards that are in effect at the date of these Specifications with subsequent amendment changes or additions as thereafter adopted and published by the organization referred to.

Whenever the Specifications permit the substitution of a similar or equivalent material or article, no tests or action relating to the approval of such substitute material will be made unless the request for approval is made in writing by the Contractor, accompanied by complete date or information demonstrating the equality of the material or article offered. Such requests shall be made in ample time to permit investigation without delaying the work.

Materials from local deposits, which have not been investigated and tested previously and approved for use, will be investigated and tested upon request of the Contractor in writing. Such tests shall be in accordance with standard methods. The cost of any such investigation and tests made as a result of the Contractor's request shall be at his expense and deductions will be made from estimates due him, sufficient to cover the cost of such tests.

3.9 Removal of Rejected and Unauthorized Work
All work, which has been rejected, shall be remedied or removed and replaced by the Contractor in an acceptable manner and no compensation will be allowed him for such removal, replacement or remedial work.

Any work done beyond the lines and grades shown on the Plans or established by the Engineer or any extra work done without written authority will be considered as unauthorized work and will not be paid for.

Upon order of the Engineer, unauthorized work shall be remedied, removed, or replaced at the Contractor's expense. Upon failure of the Contractor to comply promptly with any order of the Engineer made under the provisions of this article, the Engineer may cause rejected or unauthorized work to be remedied, removed, or replaced and to deduct the costs from any monies due or to become due the Contractor.

3.10 Equipment and Plants
Only equipment and plants suitable to produce the quality of work and materials required will be permitted to operate in connection with the work.

The Contractor shall provide adequate and suitable equipment to meet the above requirements, and when ordered by the Engineer, shall remove unsuitable equipment from the work.

All diesel equipment needs to be 2003 or newer model or some mitigation measures must be taken to reduce diesel emissions. The following are some mitigation measures that are to be implemented for all diesel equipment older than 2003:
a. The use of a diesel oxidation catalyst;
b. The substitution of biodegradable fuels; or
c. Other methods approved by the Monterey Bay Air Resources District (MBARD).

Each machine or unit of equipment shall be operated by a person experienced in handling that particular make of machine or unit of equipment in use, at a speed or rate of production not to exceed that recommended by the manufacturer.

All vehicles used to haul materials over existing streets and highways shall be equipped with pneumatic tires.

19 3.11 Character and Competence of Workers
If any subcontractor or person employed by the Contractor shall fail or refuse to carry out the directions of the Engineer or shall appear to the Engineer to be incompetent or to act in a disorderly or improper manner, he/she will be discharged immediately on the requisition of the Engineer and such person shall not again be employed in the work.

Any subcontractor or person employed by the Contractor who will be doing any intrusive work on the site needs to attend Munitions and Explosives of Concern (MEC) recognition and safety training as offered by the Army. The link for registering for this training can be found at www.fortordcleanup.com.

3.12 Final Inspection
When the work contemplated by the contract has been completed, the Engineer will make a final inspection on the ground, accompanied by the Contractor or his representative.

3.13 As Built Drawings
Corrections and changes made during the progress of the work shall be recorded on a set of red- line prints of the contract drawings, which shall finally show all work as actually installed. Two sets of prints showing this information shall be furnished by the Contractor to the City at completion. Prints for this purpose will be furnished by the City upon request and at the cost of reproduction.

4.0 Control of Materials

4.1 City Furnished Material
The Contractor shall furnish all materials required to complete the work, except those specified in the Standard Provisions to be furnished by the City.

Material furnished by the City will be delivered to the Contractor at the point specified in the Standard Provisions. They shall be unloaded and hauled to the site of the work by the Contractor at his expense. The cost of handling and placing all materials after they are delivered to the Contractor shall be considered as included in the contract price for the item in connection with which they are used.

The Contractor will be held responsible for all material delivered to him and deductions will be made from any monies due him to make good any shortages and deficiencies from any cause whatsoever which may occur after such delivery, or for any demurrage charges due to delinquency in unloading.

4.2 Source ofSupply and Quality of Materials
The materials furnished and used shall be new and unused, except as specifically provided elsewhere in these Plans and Specifications.

At the option of the Engineer, the source of supply of the materials shall be approved by him before delivery is started and before such material is used in the work. Representative preliminary samples of the character and quality prescribed shall be submitted by the Contractor or producer of all materials to be used in the work for testing or examination as desired by the Engineer.

All tests of materials furnished by the Contractor shall be made in accordance with commonly recognized standards of National organizations designated by the Engineer and such special methods and tests as are prescribed in these Plans and Specifications. The Contractor shall furnish such samples of materials as are requested by the Engineer, without charge. No material shall be used until it has been approved by the Engineer. It is understood that such approval in no way shall be considered as a guaranty of any materials, which may be delivered later for incorporation in the work. Samples will be secured and tested whenever necessary to determine the quality of material.

4.3 Defective Materials
All materials not conforming to the requirements of these Plans and Specifications, whether in place or not,

20 shall be rejected. They shall be removed immediately from the site of the work unless otherwise permitted by the Engineer. No rejected material, the defects of which have been subsequently corrected, shall be used in the work until approved in writing by the Engineer.

Upon failure of the Contractor to comply promptly with an order of the Engineer made under the provisions of this Article, the Engineer shall have the authority to cause the removal and replacement of rejected material and to deduct the cost thereof from any monies to become due the Contractor.

4.4 Storage of Materials
Materials shall be stored in such a manner as to ensure the preservation of their quality and fitness for the work. When considered necessary by the Engineer, materials shall be placed on platforms or other hard, clean surfaces and covered when directed. Stored materials shall be so located as to facilitate prompt inspection.

4.5 Delivery of Materials
The Contractor shall furnish the Engineer with a duplicate delivery ticket of all materials to be used in the work at the time of delivery, unless otherwise waived by the Engineer. The tickets shall show the quantity and type of materials to be used in the work.

5.0 Legal Relations and Responsibility

5.1 Laws to be Observed
The Contractor shall keep himself fully informed of all existing and future State and National laws and County and Municipal ordinances and regulations which in any manner affect those engaged or employed in the work, or the materials used in the work, or which in any way affect the conduct of the work, and of all such orders and decrees of bodies or tribunals having any jurisdiction or authority over the same. The Contractor shall at all times observe and comply with, and shall cause all his agents and employees to observe and comply with all such existing and future laws, ordinances, regulations, orders and decrees or bodies or tribunals having any jurisdiction or authority over the work; and shall protect and indemnify the City and all of its officers and agents and servants against any claim or liability arising from or based on the violation or any such law, ordinance, regulation, order or decree, whether by himself or his employees. If any discrepancy or inconsistency is discovered in these Plans and Specifications for the work in relation to any such law, ordinance, regulation, order or decree, the Contractor shall immediately report to Public Works in writing.

5.2 Hours of Labor
The Contractor shall forfeit, as penalty to the City, twenty five dollars ($25) for each workman employed in the execution of this contract by him or by any subcontractor under him for each working day during which such workman is permitted or required to labor more than eight (8) hours and is not paid overtime rates in accordance with the provisions of the California Labor Code, and in particular, Section 1815 thereof, inclusive.

5.3 Labor Discrimination
Attention is directed to Section 1735 of the California Labor Code, which reads as follows:
"No discrimination shall be made in the employment of persons upon public works because of the race, religious creed, color, national origin, ancestry, physical disability, medical condition, marital status, or gender of such persons, and every Contractor for public works violating this Section is subject to all the penalties imposed for a violation of this Chapter."

5.4 Prevailing Wages
The provisions of Section 7-1.02K (2) "Wages" of the California State Standard Specifications 2024 Edition shall be incorporated into this contract.

The City will not recognize any claim for additional compensation because of the payment by the Contractor

21 of any wage rate in excess of the prevailing wage rate adopted by the City Council of the City of Scotts Valley.

The possibility of wage increases is one of the elements to be considered by the Contractor in determining his bid and will not under any circumstances be considered as a basis of a claim against the City.

5.5 Registration of Contractors
Before submitting bids, Contractors shall be licensed in accordance with the provIsIons of the State Contractors' License Law, Business and Professions Code 7000 et seq. as amended. Pursuant to California Labor Code section 1771.4, the project that is the subject and purpose of this contract is subject to prevailing wage compliance monitoring by the California Department of Industrial Relations.

Pursuant to California Labor Code section 1771.1, by execution below, the Bidder and its Subcontractors certify that they are registered and qualified to perform public work pursuant to section 1725.5 of the California Labor Code, subject to limited legal exceptions.

The Contractors License required for this project is specified in "Notice to Bidders" of this document and must be valid at the time of bid submittal.

Bids are prohibited from debarred contractors required by Labor Code 1777.7.

5.6 Fair Labor Standards Act
The attention of bidders is invited to the fact that the City has been advised by the Wage and Hour Division, U.S. Department of Labor, that contractors engaged in roadway construction work are required to meet the provisions of the Fair Labor Standards Act of 1938 and as amended (52 Stat. 1060).

5.7 PaymentofTaxes
The contract prices paid for the work shall include full compensation for all taxes which the Contractor is required to pay, whether imposed by Federal, State, or local government, including, without being limited to, Federal excise tax. No tax exemption certificate, nor any document designed to exempt the Contractor from payment of any tax, will be furnished to the Contractor by the City as to any tax on labor, services, materials, transportation, or any other items furnished pursuant to this contract.

5.8 Permits & Licenses
The Contractor shall procure all permits and licenses, including a City of Scotts Valley business license, pay all charges and fees, and give all notice necessary and incident to the due and lawful prosecution of the work.

5.9 Patents
The Contractor shall assume all costs arising from the use of patented materials, equipment, devices or processes used on or incorporated in the work and agrees to indemnify and hold harmless the City of Scotts Valley, the City Council, the RDA, the City Manager, the Director of Public Works, and their duly authorized representatives, from all suits at law or actions of every nature, for or on account of the use of any patented materials, equipment, devices or processes.

5.10 Safety Provisions
The Contractor shall conform to the rules and regulations pertaining to safety as established by the California Division of Industrial Safety.

5.11 Sanitary Provisions
The Contractor shall conform to the rules and regulations pertaining to safety as established by the California Division of Industrial Safety.

5.12 Public Convenience and Safety
The Contractor shall so conduct his operations as to cause the least possible obstruction and inconvenience to public traffic. Unless otherwise provided in the Standard Provisions, all public traffic shall be

22 permitted to pass through the work. The Contractor shall furnish, erect and maintain such fences, barriers, lights, signs and other devices as are necessary to give adequate warning to the public at all times that the road or street is under construction in conformance with the latest California Manual on Uniform Traffic Control Devices (CAMUTCD). The Contractor shall also erect and maintain such warning and directional signs in accordance with State law and Caltrans, whichever is more restrictive.

5.13 Preservation ofProperty
Due care shall be exercised to avoid injury to existing street improvements or facilities, utility facilities, adjacent property, fences, signs, survey markers and monuments, buildings and structures and roadside shrubbery and trees that are not to be removed. If ordered by the Engineer, the Contractor shall provide and install suitable safeguards approved by the Engineer, to protect such objects from injury or damage. If such objects are injured or damaged by reason of the Contractor's operations, they shall be replaced or restored at the Contractor's expense, to a condition as good as when the Contractor entered upon the work and in compliance with California Business and Professions Code section 8771 for survey markers and monuments.

The Engineer may make or cause to be made such temporary repairs as are necessary to restore to service any damages roadway or utility facility. The cost of such repairs shall be borne by the Contractor and may be deducted from any monies due or to become due to the Contractor under the contract.

The fact that any underground facility is not shown upon the Plans or is not properly shown, shall not relieve the Contractor of his responsibility to ascertain the existence of any under- ground improvements or facilities, which may be subject to damage by reason of his operations.

Full compensation for furnishing all labor, materials, tools, equipment and incidentals, and doing all work involved in protecting property as above specified, shall be considered as included in the price paid for the various contract items of work, and no additional compensation will be made therefore.

5.14 Responsibilityfor Damage
The City Council, the City Manager, the Director of Public Works, City Engineer, and all officers and employees of the City shall not be answerable in any manner for any loss or damage that may happen to the work or any part thereof, or for any material or equipment used in performing the work, or for injury or damage to any person or persons, either workers or the public, for damage adjoining property from any cause whatsoever during the progress of the work or at any time before final acceptance.

The Contractor shall indemnify and hold harmless the City, City Council, the City Manager, the Director of Public Works, City Engineer, City Employees and agents, and their duly authorized representatives from all suits, claims or actions of every name, kind and description, brought by any person or persons for or on account of, any injuries or damages sustained or arising in the construction of the work or in money due the Contractor as shall be considered necessary until disposition has been made of such suits or claims (per Public Contract Code 20104 et seq.) for damages as aforesaid.

5.15 Disposal of Materials Outside the Street Right-of-Way Unless otherwise specified in the Standard Provisions, the Contractor shall make his own arrangements for disposing of materials outside the street right-of-way and he shall pay all costs involved.

When any material is to be disposed of outside the street right-of-way, the Contractor shall first obtain a written release from the property owner absolving the City from any and all responsibility in connection with the disposal of material on said property. Before any material is disposed of on said property, the Contractor shall obtain permission from the Engineer to dispose of the material at the location designated in said permit.

Unless otherwise provided in the Standard Provisions, full compensation for all costs of hauling shall be considered as included in the prices paid for the various contract items of work and no additional compensation will be made therefore.

23 5.16 Cooperation
Should construction be under way by other forces or by other contractors within or adjacent to the limits of the work specified or should work of any other nature be under way by other forces within or adjacent to said limits, the Contractor shall cooperate with all such other Contractors or other forces to the end that any delay or hindrance to their work will be avoided. The right is reserved to perform other or additional work at or near the site (included designated material sources) at any time, by the use of other forces.

5.17 Contractor's Responsibilityfor the Work and Materials Until the formal acceptance of the contract by the City, the Contractor shall have the charge and care of the work and of the materials to be used therein and shall bear the risk of injury, loss or damage to any part thereof by the action of the elements or from any other cause, whether arising from the execution or nonexecution of the work.

The Contractor shall rebuild, repair, restore, and make good all injuries, loses or damages to any portion of the work or materials occasioned by any cause before final acceptance and shall bear the expense thereof, except such injuries, losses or damages, as are directly and approximately caused by the acts of the Federal government or the public enemy.

In case of suspension of work from any cause whatever, the Contractor shall be responsible for the work and materials as specified above. Where necessary to protect the work or materials from damage, the Contractor shall, at his own expense, provide erosion control for drainage of the project and erect such temporary structures as is necessary to protect the work and materials from damage.

Full compensation for furnishing all labor, materials, tools, equipment and incidentals, and doing all work involved in protecting the improvements prior to final acceptance of the work shall be included in the price paid for the various contract items of work and no additional compensation will be made therefore.

If ordered by the Engineer, the Contractor shall, at his own expense, properly store materials, which have been furnished by the City. Such storage by the Contractor shall be on behalf of the City, and the City shall at all times be entitled to the possession of such materials, and the Contractor shall promptly return the same to the site of the work when requested.

The Contractor shall not dispose of any of the materials so stored except on the authorization from the Public Works Department.

The Contractor shall provide twenty-four (24) hour emergency service for all maintenance and operations of the work herein specified and shall supply the City of Scotts Valley Police and Fire Departments with the name and telephone number of the responsible person. Emergency service shall be within thirty (30) minutes from the time of notification. If the Contractor fails to provide this service, the City shall perform such emergency service and the cost thereof shall be deducted from the next progress payment due to the Contractor.

5.18 Acceptance of Contract
When the Engineer has made the final inspection and determines that the contract has been completed in all respects in accordance with these Plans and Specifications, he will request the Public Works Director to recommend that the City Council formally accept the contract, and immediately upon and after such acceptance, the Contractor will be relieved of the duty of maintaining and protecting the work as a whole, and he will not be required to perform any further work thereon, with the exception of work covered under warranty.

The Contractor shall also be relieved of his responsibility for injury to persons or property or damage to the work, which occurs after the formal acceptance.

The City shall release the five percent (5%) retention on the contract amount after 35 days following recordation of the Notice of Completion by the City. The contractor shall provide the City with a maintenance bond amounting to fifty percent (50%) of the contract amount, upon completion of the work.

24 5.19 Property Rights in Materials
Nothing in the contract shall be construed as vesting in the Contractor any right of property in the materials used after they have been attached or affixed to the work or the soil, or after payment has been made for fifty percent (50%) of the value of materials delivered to the site of work or stored subject to or under the control of the City, whether or not they have been so attached or affixed. All such materials shall become property of the City upon being so attached or affixed, or upon payment of such fifty percent (50%) of the value of materials delivered to the site of work stored subject to or under the control of the City.

5.20 Personal Liability
Neither the City Council, the City Manager, Public Works Department, City Engineer, nor any other officer, employee or authorized assistant or agent, shall be personally responsible for any liability arising under the contract.

6.0 Prosecution and Progress

6.1 Subcontracting
The Contractor shall give his personal attention to the fulfillment of the contract and shall keep the work under his control.

No subcontractor will be recognized as such and all persons engaged in the work of construction will be considered as employees of the Contractor, and he will be held responsible for their work, which shall be subject to the provisions of these Plans and Specifications.

When a portion of the work, which has been subcontracted by the Contractor, is not being prosecuted in a manner satisfactory to the City, the subcontractor shall be removed immediately on the requisition of the Engineer and shall not again be employed on the work.

6.2 Assignment
The performance of the contract may not be assigned, except upon the written consent of the City. Consent will not be given to any proposed assignment, which would relieve the original, Contractor or his surety of their responsibilities under the contract nor will the City consent to any assignment of part of the work under the contract.

The Contractor may assign monies due or to become due him under the contract and such assignment will be recognized by the City to the extent permitted by law if given proper set-offs in favor of the City and to all deductions provided for in the contract, and particularly, all money withheld, whether assigned or not, shall be subject to being used by the City for the completion of the work in the event that the Contractor should be in default therein.

6.3 Time of Beginning and Completion of the Work
The Contractor shall begin work within fifteen (15) working days after receiving notice from the City to proceed and shall diligently prosecute the same to completion within the time limit provided in Notice to Bidder.

6.4 Progress Schedule
If required by the Standard Provisions or requested by the Engineer, the Contractor shall, prior to beginning the work, submit to the Engineer a practical schedule showing the order in which the Contractor proposes to carry out the work, the dates on which he will start the several salient features of the work (including the procurement of materials, plant and equipment) and the contemplated dates for completing the said salient features. The progress schedule submitted shall be consistent in all respects with the time requirements of the contract.

6.5 Temporary Suspension of Work
The Engineer shall have the authority to suspend the work, wholly or in part, for each period as he may deem

25 necessary due to unsuitable weather or to such other conditions as are considered unfavorable for the suitable prosecution of the work, or for such time as he may deem necessary due to the failure on the part of the Contractor to carry out orders given or to perform the work in accordance with these Plans and Specifications.

The Contractor shall immediately comply with the written order of the Engineer to suspend the work wholly or in part. The suspended work shall be resumed when conditions are favorable, and methods are corrected as ordered or approved in writing by the Engineer.

In the event of a suspension of work under any of the conditions above set forth, such suspension of work shall not relieve the Contractor of his responsibilities as set forth under the subsection titled "Legal Relations and Responsibility" in these General Provisions.

6.6 Liquidated Damages
It is agreed by the parties to the contract that in case all the work called for under the contract, in all parts and requirements, is not finished or completed before or upon the expiration of the time limit set forth in these Plans and Specifications, damage will be sustained by the City and that it is and will be impracticable and extremely difficult to ascertain and determine the actual damage which the City will sustain in the event or by reason of such delay. It is therefore agreed that the Contractor will pay to the City the sum set forth in the Notice to Bidder for each and every calendar day's delay beyond the time prescribed to complete the work and the Contractor agrees to pay said liquidated damages as herein provided in the Notice to Bidder; and further agrees that the City may deduct the amount thereof from any monies due or that may become due the Contractor under the contract.

It is further agreed that in case the work called for under the contract is not finished and completed in all parts and requirements within the time specified, the City shall have the right to extend the time for completion or not, as may seem best to serve the interest of the City and if the City decides to extend the time limit for the completion of the contract, it shall further have the right to charge the Contractor, his heirs or assigns, all or any part as it may deem proper, of the actual cost of engineering, inspection, superintendence and other overhead expenses which are directly chargeable to the contract and which accrue during the period of such extension, except that the cost of final surveys and preparation of the final estimate shall not be included in such charges.

The Contractor will be granted an extension of time and will not be assessed liquidated damages or the cost of engineering and inspection for any portion of the delay in completion of the work caused by Acts of God or of the public enemy, acts of the City, fire, floods, epidemics, quarantine restrictions, strikes, shortage of materials and freight embargoes, provided that the Contractor shall notify the Engineer in writing of the causes of delay within TEN (10) DAYS from the beginning of such a delay. The Engineer shall ascertain the facts and the extent of the delay and his findings thereon shall be final and conclusive.

If the Contractor is delayed by reason of alterations made under the paragraphs entitled "Scope of Work" in these General Provisions, or by act of the Engineer or the City, and such alterations or acts were not contemplated by the contract, the time of completion of the work shall be extended to cover the delay so caused. In the case of such delay, the Contractor shall be relieved from any claim for liquidated damages or engineering and inspection charges or penalties for the period covered by such extension of time. The Engineer shall ascertain the facts and the extent of the delay and shall be relieved from any claim of liquidation damages or engineering overhead and inspection charges for the period covered by such extension of time.

6.7 Termination of Contract
Failure to supply an adequate working force or material of proper quality, or in any other aspect to prosecute the work with the diligence and force specified in the contract, is grounds for termination of the Contractor's control over the work and for taking over the work by the City as provided in the Public Contracts Code.

6.8 Right-of-Way
The right-of-way for the work to be constructed will be provided by the City. The Contractor shall make his/hers own arrangements and pay all expenses for additional area required by him/her outside the limits of the rightofPage 173 of 300 26 way, unless otherwise provided in these Plans and Specifications.

6.9 Utility and Other Facilities
Attention is directed to those paragraphs entitled "Legal Relations and Responsibility" of these General Provisions. The Contractor shall protect from damage utility and other facilities that are to remain in place, be installed, relocated, or otherwise rearranged.

It is anticipated that some or all of the utilities and other facilities, both above ground and below ground, that are required to be rearranged (as used herein, rearrangement includes installation, relocation, alteration, or removal) as a part of the improvement, will be rearranged in advance of construction operations. Where it is not anticipated that such rearrangements will be performed prior to construction or where the rearrangement must be coordinated with the Contractor's construction operations, the existing facilities that are to be rearranged will be indicated on the Plans, Technical Specifications, or in the Standard Provisions, the Contractor will have no liability for the costs of performing the work involved in such rearrangement.

The right is reserved to the City and the owners of facilities of their authorized agents, to enter upon the street right-of-way for the purpose of making such changes as are necessary for the rearrangement of their facilities or for making necessary connections or repairs to their properties. The Contractor shall cooperate with forces engaged in such work and shall conduct his operations in such a manner as to avoid any unnecessary delay or hindrance to the work being performed by such other forces. Wherever necessary, the work of the Contractor shall be coordinated with the rearrangement of utilities or other facilities and the Contractor shall make arrangements with the owner of such facilities for the coordination of the work.

When ordered by the Engineer in writing, the Contractor shall rearrange any utility or other facility necessary to be rearranged as part of the improvement and such work will be paid for as extra work as provided in the paragraphs entitled "Scope of Work" in these General Provisions.

Should the Contractor desire to have rearrangement made in any utility, facility, or other improvement for his convenience in order to facilitate his construction operations if such rearrangement is in addition to or different from the rearrangements indicated on the Plans, in the Technical Specifications, or in the Standard Provisions, he shall make whatever arrangements are necessary with the City or owners of such utility or other facility for such rearrangement and bear all expense in connection therewith.

Attention is directed to the possible existence of underground facilities not known to the City or in a location different from that, which is shown on the Plans, in the Technical Specifications, or in the Standard Provisions.

The Contractor shall take steps to ascertain the exact location of all underground facilities prior to doing work that may damage such facilities or interfere with their service.

Where it is determined by the Engineer that the rearrangement of an underground facility, the existence of which is not shown on the Plans, in the Technical Specifications, or in the Standard Provisions, is essential in order to accommodate the improvement, the Engineer will provide for the rearrangement of such facility by other forces, otherwise such rearrangement shall be performed by the Contractor, and will be paid for as "extra work" as provided in Section 2.3(c) "Extra Work" in these General Provisions. The Engineer will decide who shall perform such rearrangement.

7.0 Measurement and Payment

7.1 Scope of Payment
The Contractor shall accept the compensation as herein provided as full payment for furnishing all labor, materials, tools, equipment and incidentals necessary to complete the work and for performing all work contemplated and embraced under the contract; also for loss or damage arising from the nature of the work or from the action of the elements or from any unforeseen difficulties which may be encountered during the prosecution of the work until the acceptance by the City and for all risks of every description in connection with the prosecution of the work; also for all expenses incurred in consequence of the suspension or discontinuance of the work as herein specified and for completing the work according to these Plans and

27 Specifications. Neither the payment of any estimate nor of any retained percentage shall relieve the Contractor of any obligation to make good any defective work or material.

No compensation will be made in any case for loss of anticipated profits. Increased or decreased work involving supplemental agreements will be paid for as provided in such agreement.

7.2 Force Account Payment
Extra work, when ordered and accepted, shall be paid for under a written work order in accordance with the terms therein provided. Payment for extra work will be made at the unit prices or lump sum previously agreed upon by the Contractor and the Engineer or by force account. The basis for establishing costs shall be per Section 9-1.04 and all subsections of 9-1.04 of the California State Standard Specifications 2024 Edition.

7.3 Progress Payments
The Contractor shall, at the end of each month, cause an estimate in writing to be submitted to the City for the total amount of work done and the acceptable materials furnished and delivered by the Contractor on the ground and the value thereof, said materials being those not used at the time of such estimate. In addition to submitting a detailed invoice, the following "Contract Balance Form" must be submitted with each request for payment. The City shall retain five percent (5%) of the total amount of work done and fifty percent (50%) of the value of the materials so estimated to have been furnished and delivered and unused as aforesaid, as part security for the fulfillment of the contract by the Contractor and shall pay monthly to the Contractor while he is carrying on the work, the balance not retained as aforesaid, after deducting therefrom all previous payments and all sums to be kept or retained under the provisions of the contract. No such estimate or payment shall be required to be made, when in the judgment of the Engineer, the work is not proceeding in accordance with the provisions of the contract or when in his judgment, the total value of the work done since the last estimate or payment shall be construed to be an acceptance of any defective work or improper material.

28 CITY OF SCOTTS VALLEY

STATE OF CALIFORNIA
Granite Creek Road Culvert Replacement Project

CONTRACT BALANCE FORM
A Detailed Invoice MUST be Attached
------------------------------------ CONTRACTOR NAME:

MAILING ADDRESS:

The undersigned Contractor certi es that to the best• of the Contractor's knowledge, information and belief the work covered by this application for payment has been completea in accordance with the Contract Documents, that all amounts have been paid by the Contractor for work for which previous Certificates for Payment were issued and payments received from
the City, and the current payment shown here-in is
now due
By: Date:I
n accordance with the Contract Documents, based
TELEPHONE NO.:

FAX NO.:

DATE:
on on- site observations and the data comprising this application, the Construction Manager and Inspector of Record certify to the City that to the best of their knowledge, information and belief the work has progressed as indicated, the quality of the work is in accordance with the Contract Documents, and the
Contractor is entitled to payment of the Amount
Certified below (Line 8).

INVOICE NO.: By: Date:

1. ORIGINAL CONTRACT AMOUNT: $

2. APPROVED CHANGE ORDERS TOTAL: $

3. REVISED CONTRACT AMOUNT: (1+2)$

4. PREVIOUS BALANCE PAID:

5. REMAINING BALANCE:

6. CURRENT PROGRESS PAYMENT DUE:
$
$
(3-4) $
(before retention)

7. 5% RETENTION FROM WORK DONE: (-)$

8. CURRENT BALANCE DUE:

9. REMAINING BALANCE OF REVISED CONTRACT AMOUNT:
(including retention)
APPROVED BY:

City of Scotts Valley Date
(6-7) $
(5-8) $

29 7.4 Final Payment
The Engineer shall, after the completion of the contract, determine the amount of work done thereunder and the value of such work and the City shall pay the entire sum so found to be due after deducting therefrom all previous payments and all amounts to be retained under the provisions of the contract. All prior progress estimates and payments shall be subject to correction in the final payment. After project completion, the Contractor shall provide a final invoice, which includes retention amount due. Contractor shall post securities in lieu of retention (Public Contract Code 22300) of for release of claims for undisputed payment (Civil Code 3262). The amount retained shall not be due and payable until the expiration of THIRTY-FIVE (35) DAYS from the date that the Notice of Completion is recorded by the City, said Notice of Completion to be recorded within TEN (10) DAYS after formal acceptance of the work by the City Council.

It is mutually agreed between the parties to the contract that no certificate given or payment made under the contract, except the final certificate of final payment shall be conclusive evidence of the performance of the contract, whether wholly or in part, against any claim of the City, and no payment shall be construed to be an acceptance of any defective work or improper materials.

The Contractor will be required to correct defective work or materials at any time before acceptance of final payment and within one (1) year thereafter regardless of any failure of the Engineer to condemn defective work or material at the time of construction.

The Contractor shall take out and maintain, upon completion of the work, a maintenance bond, amount of which must be fifty percent (50%) of the final contract and shall remain in effect for one (1) year after the City files its Notice of Completion of work.

The Contractor further agrees that the payment of the final amount due under the contract and the adjustment and payment for any work done in accordance with any alterations of the same, shall release the City of Scotts Valley, the City Council, the City Manager, the Director of Public Works, City Engineer, or other authorized representatives from any and all claims or liability on account of work performed under the contract or any alteration thereof.

7.5 Notice of Potential Claim
The provisions of Section 5-1.43 "Potential Claims and Dispute Resolution" of the California State Standard Specifications 2024 Edition shall be incorporated into this contract.

7.6 Stop Notices
The City of Scotts Valley, by and through the Public Works Department or other appropriate department or agency of the State, may, at its option and at any time, retain out of any amounts due the Contractor, sums sufficient to cover claims, filed pursuant to Section 9500 et seq, of the Civil Code.

7.7 Payroll Records
The Contractor and subcontractor's attention is directed to the provisions of Section 1776 of the California Labor Code and to the requirements therein pertaining to the keeping, availability, and filing of accurate payroll records of all journeymen, apprentices, and other workers performing work under this Contract. The Contractor agrees to comply with the requirements of said section.

Prior to each monthly progress payment, the Contractor shall deliver to the Engineer copies of certified payrolls of its and all subcontractors' forces performing work at the job site (or sites established primarily for the work) for labor compliance purposes and extra/force account considerations. Such records shall be kept current on an effective day or period basis and in a form acceptable to the Engineer. At a minimum, the form shall include the following information:

1. Employee identification by name

2. Employee's address and social security number

30 3. Employee's craft and classification (in accordance with Director of Industrial Relations' wage determinations)

4. Employee's actual per diem wages (Notice to Contractors, and Laws and Regulations)

5. Employee's straight time and overtime hours worked each day and week

6. Itemized deductions made from employee's wages

7. Contractor's or subcontractor's firm or company name, date or period for which applicable wage rates and allowances are effective, and the employer's signature.

The certified payroll records shall be kept on forms provided by the Division of Labor Standards Enforcement.

Each payroll record shall contain or be verified by a written declaration that is made under penalty of perjury stating: (1) The information contained in the payroll is true and correct; and (2) The employer has complied with the requirements of California Labor Code Sections 1771, 1811, and 1815 for any work performed by its employees on the Project.

The contractor or subcontractor has 10 days in which to comply subsequent to receipt of a written notice requesting certified payroll records. In the event that the contractor or subcontractor fails to comply within the 10-day period, he or she shall, as a penalty to the City, forfeit one hundred dollars ($100) for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Labor Standards Enforcement, these penalties shall be withheld from progress payments then due. The Contractor is not subject to a penalty assessment pursuant to this section due to the failure of a subcontractor to comply with this section.

Any copy of records made available for inspection as copies and furnished upon request to the public or any public agency by the City shall be marked or obliterated in accordance with California Labor Code section 1776.

17,066 17,066
24,598 24,598
6,637 6,637
4,925 4,925
7,796 7,796
8,823 8,823
3,476 3,476
17,877 298
8,823 8,823
6,405 291
4,767 2384
3,476 3,476
9,981 9,981

32 BASE BID SCHEDULE
Item
No. Description Unit EstimatedQuantity Contract Unit Price Bid Amount 14 Hot Mixed Asphalt (Type A) TON 8 5,363 670
15 HMA Dike Caltrans (Type F) LF 75 4,333 58
16 Thermoplastic Pavement Marking LF 40 1,986 50
17 Develop Water Supply LS 1
2897 2,897
GRAND TOTAL (ITEMS 1 THROUGH 18)
(In Figures)
$ 139,228

BID ITEM DESCRIPTIONS
This section covers details of individual items of the Bid Schedule to ensure that it is clear as to what is to be included in each item. The costs submitted with each item are to reflect the work to be completed under that bid item only. Payment of all the following items shall be for actual materials installed on the job and for actual work accomplished.

1.0 Mobilization and Demobilization
The contract lump sum (LS) price for "Mobilization and Demobilization" shall include full compensation for furnishing all labor, materials, tools, equipment, and incidentals, and for doing all the work involved in mobilization and demobilization complete in place, including preparatory and cleanup work, movement of construction personnel, equipment, supplies and incidentals to and from the project site, obtaining bonds, insurance policies, licenses, and permits required by the contract documents, project meetings, coordination and all related administrative costs for this Project, maintaining the project site, regular cleanup and final cleanup, temporary fencing and staging area, and all other work and operations, which must be incurred prior to the beginning of and after the end of construction work, as specified in the Standard Specifications, in these Standard Provisions, and as directed by the engineer. No additional compensation will be allowed therefor.

Final payment will not be released until receipt of approved Record of Drawings. Partial payment of this bid item shall be based on percent of this item completed and shall be contingent upon the Contractor's furnishing and the City's acceptance of: 1) the schedule of values, 2) the construction schedule, 3) Traffic Control Plans, 4) Quality Control Plan, 5) all submittals and shop drawings, 6) electrician certifications, if applied 7) subcontractor's Certificate of Good Faith Effort to hire local, and 8) fringe benefit summary statement. The total amount bid for Mobilization shall not exceed 10% of the total for that bid schedule, not including the Mobilization value.

2.0 Traffic Control System
The contract lump sum (LS) price paid for "Traffic Control System" shall include full compensation for furnishing all labor, materials, tools, equipment and incidentals, and for doing all the work involved in the preparation, approval, implementation, and maintenance of the approved traffic control plan including construction area signs, 100% of flagging cost, and for doing all work involved in maintaining traffic, including, but not limited to furnishing traffic control devices, temporary striping, construction area signs, channelizers, barriers, barricades, flaggers, changeable message signs, arrow boards, and detouring as specified herein, as specified in the Standard Specifications and these Standard Provisions, and the Technical Specifications, as shown on the plans, and as directed by the Engineer. No additional compensation will be allowed therefor.

33 3.0 Clearing and Grubbing
The contract lump sum (LS) price for "Clearing and Grubbing" shall include full compensation for furnishing all labor, materials, tools, equipment, and incidentals, and for doing all the work involved in clearing and grubbing the site, including clearing, grubbing, and disposal of grass, bushes, and other objectionable material, as shown on the plans, as specified in the Standard Specifications, in these Standard Provisions, in the Technical Specifications, and as directed by the engineer. No additional compensation will be allowed therefor.

4.0 Temporary Water Pollution Control
The contract lump sum (LS) price for "Temporary Water Pollution Control" shall include full compensation for furnishing all labor, materials, tools, equipment and incidentals, and for doing all the work involved in temporary water pollution control including preparing and obtaining approval of the SWPPP, amend SWPPP, providing and removing temporary drainage inlet protection, temporary fiber roll, temporary construction entrance, temporary concrete washout, and street sweeping, as specified in the Standard Specifications, in these Standard Provisions, in the Technical Specifications, and as directed by the Engineer. No additional compensation will be allowed therefor.

5.0 Remove/Disposal Existing Storm Drain 12" CMP Pipe
The contract unit price paid per each (EA) for "Remove Existing Storm Drain 12" CMP Pipe" shall include full compensation for furnishing all labor, materials, tools, equipment, and incidentals, and for doing all the work involved in removing and disposing existing storm drain 12" CMP Pipe outside of City right-of-way, complete in place, including backfilling depressions and other ground disturbance, as shown on the plans, as specified in the Standard Specifications, in these Standard Provisions, in the Technical Specifications, and as directed by the engineer. No additional compensation will be allowed therefor.

6.0 Remove Existing Concrete Headwalls
The contract unit price paid per each (EA) for "Remove Existing Concrete Headwalls" shall include full compensation for furnishing all labor, materials, tools, equipment, and incidentals, and for doing all the work involved in removing and disposing existing concrete headwalls outside of City right-of-way, complete in place, including backfilling depressions and other ground disturbance, as shown on the plans, as specified in the Standard Specifications, in these Standard Provisions, in the Technical Specifications, and as directed by the engineer. No additional compensation will be allowed therefor.

7.0 Slurry Backfill Allowance
The contract lump sum (LS) price for "Slurry Backfill Allowance" shall include full compensation for furnishing all labor, materials, tools, equipment, and incidentals, and for doing all the work involved in placing slurry backfill to any existing voids found within trench under Granite Creek Road to 3 feet beyond the trench excavation limits, complete in place, including furnishing, and placing, as shown on the plans, as specified in the Standard Specifications, in these Standard Provisions, in the Technical Specifications, and as directed by the engineer. No additional compensation will be allowed therefor.

8.0 Install 12" HDPE
The contract unit price paid per linear foot (LF) for "Install 12" HOPE" shall include full compensation for furnishing all labor, materials, tools, equipment, and incidentals, and for doing all the work involved in installing 12" HOPE, complete in place, including trenching and backfill, as shown on the drawings, as specified in the Standard Specifications, in these Special Provisions, and as directed by the engineer. No additional compensation will be allowed therefor.

9.0 Install Ca/trans G-3 Inlet
The contract unit price paid per each (EA) for "Install Caltrans G-3 Inlet" shall include full compensation for furnishing all labor, materials, tools, equipment, and incidentals, and for doing all the work involved in installing new drainage inlet, including grate, complete in place, per Caltrans Standard Plans, as shown on the plans, as specified in the Standard Specifications, in these Special Provisions, and as directed by the engineer. No additional compensation will be allowed therefor..

34 10.0 Install Rip-Rap (20-lb, CL 1, Method BJ
The contract unit price paid per ton (TON) for "Install Rip-Rap (20-lb, CL 1, Method B)" shall include full compensation for furnishing all labor, materials, tools, equipment, and incidentals, and for doing all the work involved in placing rip-rap, complete in place, including furnishing, placing, and compacting, as shown on the plans, as specified in the Standard Specifications, in these Special Provisions, and as directed by the engineer. No additional compensation will be allowed therefor

11.0 Remove/Dispose of Trees
The contract unit price per each (EA) for "Remove Trees" shall include full compensation for furnishing all labor, materials, tools, equipment, and incidentals, and for doing all the work involved in removing trees, disposal of trees outside of City right-of-way, complete in place, including coordination of work with utility companies, as shown on the plans, as specified in the Standard Specifications, in these Standard Provisions, and as directed by the engineer. No additional compensation will be allowed therefor.

12.0 Permanent Erosion Control (Blanket & Hydroseeding) The contract lump sum (LS) price for "Permanent Erosion Control (Blanket & Hydroseeding)" shall include full compensation for furnishing all labor, materials, tools, equipment, and incidentals, and for doing all the work involved in installing permanent erosion control, complete in place, as shown on the plans, as specified in the Standard Specifications, in these Standard Provisions, as directed by the engineer. No additional compensation will be allowed therefor.

13.0 Temporary Creek (Water) Diversion
The contract lump sum (LS) price for "Temporary Creek (Water) Diversion" shall include full compensation for furnishing all labor, materials, tools, equipment, and incidentals, and for doing all the work involved in temporary creek (water) diversion, complete in place, including installing, maintaining, and operate all cofferdams, channel, sumps and all other temporary diversion and protective works needed to divert surface water through or around the construction site.

Control of surface water shall be continuous during the period that damage to construction work could occur. Unless otherwise specified and/or approved, the diversion outlet shall be into the same drainageway that the water would have reached before being diverted.

All activities associated with temporary creek (water) diversion will be governed in accordance to the Standard Specifications, these Standard Provisions, and as directed by the engineer. No additional compensation will be allowed therefor.

14.0 Hot Mix Asphalt {Type A)
The contract unit price paid per ton (TON) for "Hot Mix Asphalt (Type A)" shall include full compensation for furnishing all labor, materials, tools, equipment, and incidentals, and for doing all the work involved in placing HMA, complete in place, including furnishing, placing, and compacting, as shown on the plans, as specified in the Standard Specifications, in these Special Provisions, and as directed by the engineer. No additional compensation will be allowed therefor.

15.0 HMA Dike Ca/trans (Type F)
The contract unit price paid per linear foot (LF) for "HMA Dike Caltrans (Type F)" shall include full compensation for furnishing all labor, materials, tools, equipment, and incidentals, and for doing all the work involved in installing HMA Dike Caltrans (Type F), complete in place, as shown on the drawings, as specified in the Standard Specifications, in these Special Provisions, and as directed by the engineer. No additional compensation will be allowed therefor.

The aggregate base required to construct HMA Dike Caltrans (Type F) shall be considered as included in the

35 Signatu
contract unit paid per linear foot for "HMA Dike Type A". No additional compensation will be allowed therefor.

If unsuitable materials are found, the contractor shall be required to remove the unsuitable materials and replace it with the approved suitable materials at the direction of the Engineer. No additional compensation will be allowed therefor.

16.0 Thermoplastic Pavement Marking
The contract unit price per square foot (SF) for "Thermoplastic Pavement Marking" shall include full compensation for furnishing all labor, materials, tools, equipment, and incidentals and for doing all the work involved in the installation of new thermoplastic pavement markings complete in place, as shown on the plans, as specified in the Standard Specifications, in these Special Provisions, and as directed by the engineer. No additional compensation will be allowed therefor.

17.0 Develop Water Supply
The contract lump sum (LS) price paid for "Develop Water Supply" shall include full compensation for furnishing all labor, materials, tools, equipment and incidentals, water meter, and for doing all the work involved in developing water supply including removing and disposing after project completion, as specified in the Standard Specifications, in these Standard Provisions, and as directed by the Engineer. No additional Compensation will be allowed therefor.

PROJECT BASE BID TOTAL (ltems1-17): 139,228
Acie Mathews
Printed Name
President
Title
(IMPORTANT NOTICE: If bidder is a corporation, the legal name of the corporation shall be set forth above, together with the signature of the officer or officers authorized to sign contracts on behalf of the corporation; if bidder is a co-partnership, the name of the firm shall be set forth above, together with the signatures of the partner or partners authorized to sign contracts on behalf of the co-partnership; and if bidder is an individual, said bidder's signature shall be placed above.)

36 CITY OF SCOTTS VALLEY

STATE OF CALIFORNIA
A9 - SUBCONTRACTORS LISTING
The Bidder shall list the name and address of each subcontractor to whom the Bidder proposes to subcontract portions of the work, as required by the provisions in Section 2-1.10, "Subcontractor List" of the Standard Specifications, A1 - Notice To Bidder, AS - Proposal, and A7 - General Provisions.

NAME LOCATION OF
BUSINESS LICENSE NO.

CONTRACTOR

REGISTRATION
NO.

PORTION OR TYPE

OF WORK
AWP Traffic SAFETY
1105 N 5TH Street
San Jose CA
95112 975518 1000001109
Traffic control
and
Traffic systems

37 CITY OF SCOTTS VALLEY

STATE OF CALIFORNIA
A10-PUBLIC CONTRACT CODE SECTION 10162 QUESTIONNAIRE
In conformance with Public Contract Code Section 10162, the Bidder shall complete, under penalty of perjury, the following questionnaire:

Has the bidder, any officer of the bidder, or any employee of the bidder who has a proprietary interest in the bidder, ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of a violation of law or a safety regulation? Yes No ✓
If the answer is yes, explain the circumstances in the following space.

38 ¥-

CITY OF SCOTTS VALLEY

STATE OF CALIFORNIA
A11 -PUBLIC CONTRACT CODE 10232 STATEMENT
In conformance with Public Contract Code Section 10232, the Contractor, hereby states under penalty of perjury, that no more than one final unappealable finding of contempt of court by a federal court has been issued against the Contractor within the immediately preceding two-year period because of the Contractor's failure to comply with an order of a federal court which orders the Contractor to comply with an order of the National Labor Relations Board.

Note: The above Statement and Questionnaire are part of the Proposal. Signing this Proposal on the signature portion thereof shall also constitute signature of this Statement and Questionnaire.

Bidders are cautioned that making a false certification may subject the certifier to criminal prosecution.

A12 - PUBLIC CONTRACT CODE SECTION 10285.1 STATEMENT
In conformance with Public Contract Code Section 10285.1 (Chapter 376, Stats. 1985), the bidder hereby declares under penalty of perjury under the laws of the State of California that the bidder has _ , has not been convicted within the preceding three years of any offenses referred to in that section, including any charge of fraud, bribery, collusion, conspiracy, or any other act in violation of any state or Federal antitrust law in connection with the bidding upon, award of, or performance of, any public works contract, as defined in Public Contract Code Section 1101, with any public entity, as defined in Public Contract Code Section 1100, including the Regents of the University of California or the Trustees of the California State University.

The term "bidder" is understood to include any partner, member, officer, director, responsible managing officer, or responsible managing employee thereof, as referred to in Section 10285.1.

Note: The bidder must place a check mark after "has" or "has not" in one of the blank spaces provided. The above Statement is part of the Proposal. Signing this Proposal on the signature portion thereof shall also constitute signature of this Statement. Bidders are cautioned that making a false certification may subject the certifier to criminal prosecution.

39 CITY OF SCOTTS VALLEY

STATE OF CALIFORNIA
A13 - NONCOLLUSION AFFIDAVIT
(Title 23 United States Code Section 112 and
Public Contract Code Section 7106)
to the

CITY OF SCOTTS VALLEY

DEPARTMENT OF PUBLIC WORKS
In conformance with Title 23 United States Code Section 112 and Public Contract Code 7106 the bidder declares that the bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham; that the bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or that anyone shall refrain from bidding; that the bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the bid are true; and, further, that the bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid.

Note: The above Noncollusion Affidavit is part of the Proposal. Signing this Proposal on the signature portion thereof shall also constitute signature of this Noncollusion Affidavit.

Bidders are cautioned that making a false certification may subject the certifier to criminal prosecution.

40 CITY OF SCOTTS VALLEY

STATE OF CALIFORNIA
A14 - BIDDER'S BOND

KNOW ALL PEOPLE BY THESE PRESENTS THAT WE,
Mathews General Engineering and Construction
Old republic surety company
_,as PRINCIPAL, and
as SURETY, are held
and firmly bound unto the CITY OF SCOTTS VALLEY, State of California, hereinafter called CITY, in the penal sum of TEN PERCENT (10%) OF THE TOTAL AMOUNT OF THE BID of the Principal above named, submitted by said Principal to CITY, for the work described below for the payment of which sum in lawful money of the United States, will and truly to be made, we bind ourselves, our heirs, executors, administrators and successors, jointly and severally, firmly by these presents. In no case shall the liability of the surety exceed the sum of Twenty- Three Thousand Eight Hundred and eighty Dollars ($23,880 ).

THE CONDITION OF THIS OBLIGATION IS SUCH that whereas the Principal has submitted the above-mentioned bid to CITY for certain construction specifically described as follows for which bids are to be opened at Scotts Valley, California on
the
April 28TH ,202 6_for the construction of
Public Works Project No. P26-001
Granite Creek Road Culvert Replacement Project
NOW, THEREFORE, if the aforesaid Principal shall not withdraw said bid within the period specified therein after the opening of the same, or, if no period be specified, within sixty (60) days after said opening, and shall within the period specified therefore, or, if no period be specified therefore, within ten (10) days after the prescribed forms are presented to aforesaid Principal for signature, enter into a written contract with CITY, in the prescribed form in accordance with the bid as accepted, and file the two bonds with C ITY, one to guarantee faithful performance and the other to guarantee payment for labor and materials, as required by law, then this obligation shall be null and void; otherwise, it shall be and remain in full force and virtue.

In the event suit is brought upon said bond by CITY, and judgment is recovered, the Surety shall pay all costs incurred by CITY in such suit, including a reasonable attorney's fees to be fixed by the Court.

IN WITNESS WHEREOF, we have hereunto set our hands and seals on this 28th day of April
(seal)
(seal)
,202_6.

Principal
Surety
Address:
(NOTE: Signature of those executing for the Surety shall be properly acknowledged, and accompanied by a Certificate of acknowledgment.)

41 CITY OF SCOTTS VALLEY

STATE OF CALIFORNIA
A15 - STANDARD PROVISIONS

1.0 Description of Work
The scope of work to be performed under this contract consists of remove and replace storm drainage pipe crossing Granite Creek Road. The work include, but not limited to:
• Remove and replace 57 linear feet of culvert under Granite Creek Road. • Construct two headwalls including rock slope protection. • Construct inlet and HMA dike.
• Traffic Control
• Temporary erosion control measures
and performing other items or details not mentioned above that are required by the plans, and as specified in the Standard Specifications or these Standard Provisions in accordance with Contract document.

2.0 Time of Completion
The Contractor shall promptly begin his activities (bonds, etc.) immediately after the Award of Contract and shall prosecute the work so that all portions of the project are completed and ready for use. The following limits must also be met:
a. Contractor shall diligently prosecute the work of completion of the contract before the expiration of the following days from the date of the Notice to Proceed by the City Council:

Completion of Construction -- 30 Working Days

3.0 Liquidated Damages
Liquidated damages as set forth in the general Provisions shall be in the amount of $2,800 per working day.

4.0 Access to Work
The Contractor shall at all times provide proper facilities for access and inspection of the work by authorized representatives of local, state or federal governments.

5.0 Lands and Fences
The City will provide certain lands and rights-of-ways as shown on the Drawings and determined by the Engineer in connection with work under the contract, without cost to the Contractor. The Contractor shall limit his operations to the areas and lands provided.

Before final acceptance of the work, the Contractor shall obtain a written statement of release indicating the City acceptance of the site conditions as restored by the Contractor.

6.0 Preservation of Property
The Contractor shall exercise due care in the performance of the work to avoid injury, damage, or loss to existing improvements, utility facilities, and other property of any nature on or near the site of the work. The Contractor shall be responsible as follows for any injury, damage, or loss to property arising out of the work, irrespective of fault or negligence, excepting only such injury, damage, or loss to property as is caused by the negligence or willful misconduct of the City or its officers or employees. a. The Contractor shall repair, replace or otherwise restore the property to a condition as good as it was when he commenced work, or as good as required by the Specifications, if applicable. In addition, the Contractor shall perform such temporary repairs of any facility, necessary to restore it to service, as are ordered by the Engineer. At the request of the property Owner, or upon the failure of the Contractor to perform promptly, the Engineer may cause such repair, replacement, restoration, or temporary

42 repair to be performed by the City or its designee, in which case the costs shall be borne by the Contractor and may be deducted, in whole or in part, from any money due or to become due him under the contract.
b. The Contractor shall indemnify and hold harmless the City, its elected officials, officers, consultants and employess and, at the request of the City, defend all the samefrom all claims, suits, or actions of any nature brought for or on account of any such injury, damage, or loss. c. The Contractor shall exercise due care to locate any underground improvements for facilities which may be affected by his operations. Contractor shall call Underground Service Alert 48 hours before the start of his construction and shall be responsible for injury, damage, or loss thereto as provided in this article, whether or not such improvements or facilities are shown on the Drawings. If improvements or facilities not shown on the Drawings are encountered within the City furnished right-of-way, any removal, replacement, alteration, or relocation thereof necessary for performance of the work to be performed by the Contractor may be ordered by the Engineer as items of Extra Work. d. Except as otherwise expressly provided, the Contractor shall comply with all terms and conditions of any instrument granting the City or the Contractor the right to enter upon property which pertain to the time, method, or manner of performing the work. The Contractor shall indemnify and hold harmless the City and all officers and employees of the City connected with the work from all claims, suits or actions of any nature brought for on account of the violation of any such terms and conditions by the Contractor or his subcontractors, suppliers, agents, or employees.

7.0 Restoration of Structures and Surfaces
All existing facilities that are broken or damaged by the installation of work shall be of the same kind of material with the same finish and in not less than the same dimensions as the original work. All work shall match the appearance of the existing improvements as nearly as possible.

8.0 Lines and Grades
The Contractor shall provide all construction surveying, stakes and marks necessary to establish the lines and grades required for the completion of the work specified in these General Provisions, Standard Provisions, on the plans and in the Technical Provisions.

All construction surveying herein required shall be performed by a Licensed Surveyor or Registered Civil Engineer currently licensed by the State of California to perform such surveys.

Full compensation for furnishing such surveys, stakes, and marks as herein required shall be considered as included in the price paid for the various contract items of work to which such surveys and measurements, stakes, and marks relate, and no additional compensation will be allowed therefor.

9.0 Environmental Storm Water Pollution Control
The Contractor shall not pollute any drainage course or its tributary inlets with fuels, oils, bitumen's, acids, insecticides, herbicides, or other harmful materials. The Contractor shall comply with all applicable Federal, State, County and Municipal laws concerning pollution of waterways.

10.0 Safety
The Contractor shall execute and maintain his work so as to avoid injury or damage to any person or property.

The Contractor shall comply with the requirements of CAL-OSHA and all applicable laws and the specifications relating to safety measures applicable in particular operations or kinds of work.

11.0 Clean-Up
The Contractor shall not allow the site of the work to become littered with trash and waste material but shall maintain the site in its normal neat and orderly condition throughout the construction period. On or before the completion of the work, the Contractor shall tear down and remove all temporary structures built by him and shall remove rubbish of all kinds from any of the grounds which he has occupied and leave them in first-class

GRANITE CREEK CULVERT REPLACEMENT PROJECT

BID COMPARISON
Mathews Gen. Eng. & Const.

DESCRIPTION OF ITEM QUANTITY UNIT UNIT PRICE $

ITEM TOTAL
$
UNIT PRICE $

ITEM TOTAL
$
UNIT PRICE $

ITEM TOTAL
$
ITEM NO. Base Bid Schedule
1 Mobilization & Demobilization 1 LS $13,706.00 $13,706.00 $0.00 $0.00 2 Traffic Control 1 LS $24,366.00 $24,366.00 $0.00 $0.00 3 Clearing & Grubbing 1 LS $9,998.00 $9,998.00 $0.00 $0.00 4 Temporary Water Pollution Control 1 LS $6,373.00 $6,373.00 $0.00 $0.00 5 Remove/Disposal Existing Storm Drain 12" CMP
Pipe 1 EA $7,332.00 $7,332.00 $0.00 $0.00
6 Remove Existing Concrete Headwalls 2 EA $9,170.00 $18,340.00 $0.00 $0.00 7 Slurry Backfill Allowance 1 EA $4,345.00 $4,345.00 $0.00 $0.00 8 Install 12" HDPE 60 LS $342.00 $20,520.00 $0.00 $0.00 9 Install Caltrans G-3 Inlet 1 LF $8,591.00 $8,591.00 $0.00 $0.00 10 Install Rip-Rap (20-lb, CL 1, Method B) 22 TON $164.00 $3,608.00 $0.00 $0.00 11 Remove/Dispose of Trees 2 EA $3,426.00 $6,852.00 $0.00 $0.00 12 Permanent Erosion Control (Blanket &
Hydroseeding) 1 LS $5,214.00 $5,214.00 $0.00 $0.00
13 Temporary Water (Creek) Division 1 LS $14,964.00 $14,964.00 $0.00 $0.00 14 Hot Mixed Asphalt (Type A) 8 TON $612.00 $4,896.00 $0.00 $0.00 15 HMA Dike Caltrans (Type F) 75 LF $60.00 $4,500.00 $0.00 $0.00 16 Thermoplastic Pavement Marking 40 LF $50.00 $2,000.00 $0.00 $0.00 17 Develop Water Supply 1 LS $2,897.00 $2,897.00 $0.00 $0.00 18 Install Headwalls 4 CY $3,364.00 $13,456.00 $0.00 $0.00 SUBTOTAL: $171,958.00 $0.00 $0.00
GRAND TOTAL $171,958.00 $0.00 $0.00

Exhibit B
Mathews - Performance & Security Bonds -

06.08.26

7 FINAL CONTRACT AMOUNTS THAT

EXCEED THE ORIGINAL CONTRACT

AMOUNT WILL BE CHARGED ADDITIONAL
PREMIUM AND FEE. INCLUDE THESE
CHARGES IN YOUR CHANGE ORDERS.

CITY OF SCOTTS VALLEY

STATE OF CALIFORNIA
BOND NO. 7495474
A3 - BOND FOR FAITHFUL PERFORMANCE
WHEREAS, the City Council of the City of Scotts Valley, State of California, and Mathews General Engineering and Construction , (herein designated as "Contractor") have entered into an agreement whereby contractor agrees to install and complete certain designated public improvements, which said agreement dated TBD 20..12.... identified as Granite Creek Road Culvert Replacement Proj. , (the "Agreement") is hereby referred to and made a part hereof; and PW Project No.P26-001 WHEREAS, Contractor is required under the terms of the Agreement to furnish a bond for the faithful performance of the Agreement.

NOW, THEREFORE, WE, the principals and Old Republic Surety Company , as surety, are held and firmly bound unto the City of Scotts Valley, hereinafter called "City", in the penal sum of One hundred sixty two thousand seven hundred eighty eight & NO/100ths Dollars ($162,788.00), lawful money of the United States for Granite Creek Road Culvert Replacement Project; PW Project No.

P26-001 for the payment of which sum, well and truly made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these presents.

The condition of this obligation is such that if above-bounded Contractor, or their heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the said Agreement and any alteration thereof made as therein provided, on their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

As part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.

The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or to the specifications.

The surety shall provide City with thirty (30) days' written notice of Contractor's default prior to the surety terminating, suspending or revoking the bond.

IN WITNESS WHEREOF, this instrument has been duly executed by the principals and surety above names, on June 4th 1 2026. Old Republic urety Company
Surety
Attorneys in Fact
Mathews General Engineering and Con_structiori
Principal
Acie Lee Mathews Jr.CEO, CFO Principal

8 Acie Lee Mathews Jr.CEO, CFO

FINAL CONTRACT AMOUNTS THAT

EXCEED THE ORIGINAL CONTRACT

AMOUNT WILL BE CHARGED ADDITIONAL
PREMIUM AND FEE. INCLUDE THESE
CHARGES IN YOUR CHANGE ORDERS. CITY OF SCOTTS VALLEY

STATE OF CALIFORNIA
BOND NO. 7495474
A4 - BOND FOR SECURITY OF LABORERS AND MATERIAL PERSON
WHEREAS, the City Council of the City of Scotts Valley, State of California, and Mathews General Engineering and Construction , (herein designated as "principals") have entered into an agreement whereby principals agrees to install and complete certain designated public improvements, which said agreement dated TBD , 20 ie, and identified as Granite Creek Road Culvert Replacement Project; PW Project No. P26-001, (the "Agreement") is hereby referred to and made a part hereof; and WHEREAS, under the terms of said Agreement, principals are required before entering upon the performance of the work, to file a good and sufficient payment bond with the City of Scotts Valley to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California.

NOW, THEREFORE, said principals and the undersigned as corporate surety, are held firmly bound unto the City of Scotts Valley and all contractors, subcontractors, laborers, material person and other persons employed in the performance of the aforesaid Agreement and referred to in the aforesaid Civil Code in the sum of One hundred sixty two thousand seven hundred eighty eight and NO/100ths Dollars ($162,788.00), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that said surety will pay the same in an amount not exceeding the amount herein above set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees including reasonable attorney's fees, incurred by City in successfully enforcing such obligation to be awarded and fixed by the Court and to be taxed as costs and to be included in the judgment therein rendered.

IT IS HEREBY EXPRESSLY STIPULATED AND AGREED that this bond shall inure to the benefit of any and all persons, companies and corporations entitled to file claims under Title 15 (commencing with Section 3082) of Part 4 Division 3 of the right to action to them or their assigns in any suit brought upon this bond.

Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect. Surety shall provide City with thirty (30) days' written notice of Principal's default prior to Surety terminating, suspending or revoking the bond.

The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of said Agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration or addition.

IN WITNESS WHEREOF, this instrument has been duly executed by the principals and surety above names, on June 4th , 20£.

Old Republic Surety Company
� Sure',y
� ttorneys in Fad
Mathews General Engineering & Construction
Principal
By: _

!
(t7�if�i) /4.U
(�I:f�\� . . . . 4th June
*
****
*

OLD REPUBLIC SURETY COMPANY
*****

POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS: That OLD REPUBLIC SURETY COMPANY, a Wisconsin stock insurance corporation, does make, constitute and appoint: MICHAEL D. WILLIAMS, JEREMY J. CRAWFORD of GOLDEN VALLEY, MN its true and lawful Attorney(s)-in-Fact, with full power and authority for and on behalf of the company as surety, to execute and deliver and affix the seal of the company thereto (if a seal is required), bonds, undertakings, recognizances or other written obligations in the nature thereof, (other than bail bonds, bank depository bonds, mortgage deficiency bonds, mortgage guaranty bonds, guarantees of installment paper and note guaranty bonds, self-insurance workers compensation bonds guaranteeing payment of benefits, or black lung bonds), as follows:

ALL WRITTEN INSTRUMENTS
and to bind OLD REPUBLIC SURETY COMPANY thereby, and all of the acts of said Attorneys-in-Fact, pursuant to these presents, are ratified and confirmed.

This appointment is made under and by authority of the board of directors at a special meeting held on February 18, 1982.

This Power of Attorney is signed and sealed by facsimile under and by the authority of the following resolutions adopted by the board of directors of the OLD REPUBLIC SURETY COMPANY on February 18,1982.

RESOLVED that, the president, any vice-president or assistant vice president, in conjunction with the secretary or any assistant secretary, may appoint attorneys-in-fact or agents with authority as defined or limited in the instrument evidencing the appointment in each case, for and on behalf of the company to execute and deliver and affix the seal of the company to bonds, undertakings, recognizances, and suretyship obligations of all kinds; and said officers may remove any such attorney-in-fact or agent and revoke any Power of Attorney previously granted to such person.

RESOLVED FURTHER, that any bond, undertaking, recognizance, or suretyship obligation shall be valid and binding upon the Company (i) when signed by the president, any vice president or assistant vice president, and attested and sealed (if a seal be required) by any secretary or assistant secretary; or
(ii) when signed by the president, any vice president or assistant vice president, secretary or assistant secretary, and countersigned and sealed (if a seal be required) by a duly authorized attorney-in-fact or agent; or (iii) when duly executed and sealed (if a seal be required) by one or more attorneys-in-fact or agents pursuant to and within the limits of the authority evidenced by the Power of Attorney issued by the company to such person or persons.

RESOLVED FURTHER that the signature of any authorized officer and the seal of the company may be affixed by facsimile to any Power of Attorney or certification thereof authorizing the execution and delivery of any bond, undertaking, recognizance, or other suretyship obligations of the company; and such signature and seal when so used shall have the same force and effect as though manually affixed.

IN WITNESS WHEREOF, OLD REPUBLIC SURETY COMPANY has caused these presents to be signed by its proper officer, and its corporate seal to be affixed this 3rd day of June 2026

STATE OF WISCONSIN, COUNTY OF WAUKESHA - SS
,,,,,��111�,��;?''l
'l111/f11J;//�I\\\\\\\\\\\"\

OLD REPUBLIC SURETY COMPANY
President
On this 3rd day of June 2026 , personally came before me, Alan Pavijc and Karen J Haffner , to me known to be the individuals and officers of the OLD REPUBLIC SURETY COMPANY who executed the above instrument, and they each acknowledged the execution of the same, and being by me duly sworn, did severally depose and say: that they are the said officers of the corporation aforesaid, and that the seal affixed to the above instrument is the seal of the corporation, and that said corporate seal and their signatures as such officers were duly affixed and subscribed to the said instrument by the authority of the board of directors of said corporation.

My Commission Expires: September 28, 2026
CERTIFICATE (Expiration of notary's commission does not invalidate this instrument) I, the undersigned, assistant secretary of the OLD REPUBLIC SURETY COMPANY, a Wisconsin corporation, CERTIFY that the foregoing and attached Power of Attorney remains in full force and has not been revoked; and furthermore, that the Resolutions of the board of directors set forth in the Power of Attorney, are now in force.
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40-5304 Signed and sealed at the City of Brookfield, WI th1s day of 2026
ORSC 22262 (3-06) ---���--
CCI SURETY, INC.

ACKNOWLEDGMENT
State of Minnesota
personally appeared Jeremy J. Crawford, Attorney-In-Fact WITNESS my hand and official seal. l
Signature

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. LIMITS SHOWN ARE INCLUSIVE OF AMOUNTS REQUESTED BY THE CERTIFICATE HOLDER AND MAY NOT REFLECT POLICY LIMIT AMOUNTS IN EXCESS OF THOSE REQUESTED. *Not Applicable in WY $
$
$
$ 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 (2025/12) © 1988-2025 ACORD CORPORATION. All rights reserved.

CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED

AUTOS ONLY
6/5/2026
Acrisure West Insurance Services, LLC
1950 W Corporate Way #1
Anaheim CA 92801-5373
Joanne Gorup 714-221-5217 [email protected] License#: 6009644 Evanston Insurance Company 35378 MATHGEN-01 Palomar Excess and Surplus Insurance Company 16754 Mathews General Engineering and Construction
16775 Forty Niner Trail
Lathrop CA 95330
Underwriters at Lloyd's, London (NAIC#:15792) 15792 United Financial Casualty Company 11770 1786473963 A X 1,000,000 X 100,000 5,000 1,000,000 2,000,000 X
3AB014631 6/5/2026 6/5/2027
2,000,000
D 1,000,000 X
874475814 5/21/2026 5/21/2027
A
4,000,000 X
EZXS3247767 6/5/2026 6/5/2027
4,000,000
B
C
Pollution Lib.

Prof. Liab.

TBD
TBD
6/5/2026
6/5/2026
6/5/2027
6/5/2027
Occ. Limit
Occ. Limit
$1,0000,000
$1,000,000
Granite Creek Road Culvert Replacement Project
Scotts Valley CA 95066

AGENDA ITEM 7.

DATE: 6/17/2026
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 6/17/2026
TO: Honorable Mayor and City Council
FROM: Rodolfo Onchi, Public Works Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Approve Professional Services Agreement with Environmental Innovations for Environmental Compliance Services

SUMMARY OF ISSUE
The Public Works Department is responsible for a variety of environmental compliance programs and regulatory requirements, including stormwater, wastewater, solid waste, recycling and organics diversion programs associated with AB 341, AB 1826, and SB 1383, as well as compliance with the City's wastewater and stormwater discharge permits. Required compliance activities include inspections, public outreach and education, staff training, reporting, monitoring, and enforcement when necessary.

Environmental Innovations has provided environmental compliance services to the City since 2007 and possesses extensive institutional knowledge of the City's environmental programs, regulatory requirements, and reporting obligations. Their expertise across multiple environmental disciplines and local presence allow for timely response to compliance issues and support requests. Continued use of Environmental Innovations promotes program continuity and assists the City in maintaining compliance with State and Federal regulatory mandates.

These services help the City meet permit requirements and environmental regulations that are necessary to protect public health and water quality. Failure to comply with applicable regulatory requirements may result in enforcement actions, penalties, and increased liability.

The proposed scope of services for FY 2026/27 is divided into three primary program areas:

Source Control and Environmental Compliance
• Assess businesses and industries within Scotts Valley for potential impacts to wastewater and stormwater systems and maintain an inventory of regulated facilities. • Inspect approximately 100 businesses annually that may adversely impact stormwater or wastewater quality.
• Inspect and regulate 3–4 significant industrial users through the City's wastewater pretreatment program.

• Conduct enforcement activities for wastewater compliance issues, with an estimated 10 enforcement cases annually.
• Review development and construction plans for environmental compliance requirements on an as-needed basis.

MS4 NPDES Stormwater Permit Compliance
• Program management and regulatory coordination.
• Public education and outreach.
• Staff and site operator training.
• Public involvement and participation activities.
• Illicit discharge detection and elimination.
• Maintenance of illicit discharge source and facility inventories. • Field sampling and monitoring activities.
• Pollution prevention and good housekeeping program implementation. • Storm drain system maintenance support.
• Post-construction operations and maintenance verification. • Program effectiveness assessment and implementation.
• Total Maximum Daily Load (TMDL) compliance activities. • Preparation and submission of annual regulatory reports.

AB 1826 and SB 1383 Organic Waste Diversion Compliance
• Compliance monitoring and participation tracking.
• Education and outreach activities.
• Recordkeeping and regulatory reporting.
• Enforcement activities as required.

Services will be provided by appropriately qualified personnel, including a Senior Scientist/Program Manager, Compliance Inspectors, and support staff. The attached proposal details the scope of work and hourly rates for personnel assigned to the project.

The total cost for the proposed services is $150,114 for FY 2026/27.

FISCAL IMPACT
Funding for the proposed agreement, in an amount not to exceed $150,114, is included in the FY 2026/27 operating budget.

Wastewater compliance services are funded through the Wastewater Enterprise Fund.

Stormwater and solid waste compliance services are funded through Fund 2 - Recycling/Environment Special Revenue Fund. There is no impact to the General Fund.

STAFF RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to execute a Professional Services Agreement with Environmental Innovations for environmental compliance services for

FY 2026/27 in an amount not to exceed $150,114.

TABLE OF CONTENTS

1. Environmental-Innovations-Contract-20262027-Fiscal-Year

1 ProfServicesAgmTemplate2025

AGREEMENT FOR PROFESSIONAL SERVICES
This Agreement for Professional Services (“Agreement”) is made and entered into as of Wednesday, July 1, 2026, by and between the City of Scotts Valley, a municipal corporation, hereinafter referred to as "CITY", and Environmental Innovations Inc, hereinafter referred to as “CONSULTANT”.

RECITALS
A. CITY desires to retain CONSULTANT for certain professional services as set forth in this Agreement.

B. CONSULTANT is specially trained, experienced, and competent to perform the special services which will be required by this Agreement.

C. CONSULTANT possesses the skill, ability, background, certification, and knowledge to provide the services described in this Agreement on the terms and conditions described herein.

NOW, THEREFORE, in consideration of the recitals and the mutual promises contained herein, CITY and CONSULTANT agree as follows:

AGREEMENT

1. Employment of CONSULTANT:

CITY agrees to, and hereby does, retain and employ CONSULTANT to perform the professional services as outlined in the Scope of Work attached hereto and incorporated herein as Exhibit “A”. CONSULTANT’S work product shall be performed pursuant to generally accepted standards of practice in effect at the time of performance.

2. Responsible Personnel:

CITY has relied upon the professional training and ability of CONSULTANT to perform the services hereunder as a material inducement to enter into this Agreement. Primary personnel responsible for the completion of the work described in this Agreement shall be:

Josephine Fleming - Owner
307 Laguna Street
Santa Cruz, CA 95060
(831) 706-7384
[email protected]

2 ProfServicesAgmTemplate2025

3. Scope of Work:

CONSULTANT shall perform the services as specified in Exhibit A in a professional manner. To the extent there is a conflict between the terms of this Agreement and Exhibit A, the terms of this Agreement shall control.

4. Time of Performance:

The services of CONSULTANT are to commence upon execution of this Agreement and shall continue until all authorized work is approved by the CITY. All such work shall be completed no later than 1 year from signing. Time is of the essence in the performance of this Agreement. No waiver by either party hereto of the nonperformance or any breach of any term, provision, or condition of this Agreement, or any default hereunder shall be considered to be or operate as a waiver of any subsequent nonperformance, breach, or default.

5. Compensation:

CONSULTANT shall accept compensation for services performed as set forth in Section 3 in an amount not to exceed $150,114.00. Periodic payments to CONSULTANT shall be made upon submittal of invoices by CONSULTANT to CITY for review and approval by the City Manager. Invoices will be paid by CITY within a reasonable time after the invoices are received and approved.

6. Insurance:

CONSULTANT agrees to have and maintain, for the duration of the Agreement, the following minimum insurance requirements. Prior to the execution of the Agreement, CONSULTANT shall provide proof of insurance required. Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the CITY.

CONSULTANT shall furnish the CITY with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the CITY before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive CONSULTANT’s obligation to provide them. The CITY reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

Coverage shall be at least as broad as:

1. 1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 05 09 or 25 04 05 09) or the general aggregate

3 ProfServicesAgmTemplate2025
limit shall be twice the required occurrence limit. 2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, covering hired, (Code 8) and non-owned autos (Code 9), with limit no less than $2,000,000 per accident for bodily injury and property damage. 3. Workers’ Compensation: as required by the State of California, with Statutory Limits. 4. Professional Liability (Errors & Omissions): As appropriate to CONSULTANT’s services, and not less than $5,000,000 per occurrence. 5. Sexual Abuse or Molestation (SAM) Liability: If the work will include contact with minors, and the CGL policy referenced above is not endorsed to include affirmative coverage for sexual abuse or molestation, Contractor shall obtain and maintain a policy covering Sexual Abuse and Molestation with a limit no less than $2,000,000 per occurrence or claim.

The insurance policies are to contain, or be endorsed to contain, the following provisions:

The City of Scotts Valley, its Council Members, elected and appointed officers, agents and employees shall be named as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Independent Contractor including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Independent Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).

For any claims related to this Agreement, CONSULTANT’s insurance coverage shall be primary insurance coverage (at least as broad as ISO CG 20 01 04 13) with respect to the CITY, its officers, officials, employees, and volunteers. Any insurance or selfinsurance maintained by the CITY, its officers, officials, employees, or volunteers shall be excess of the CONSULTANT’s insurance and shall not contribute with it.

CONSULTANT hereby grants to CITY a waiver of any right to subrogation which any insurer of said CONSULTANT may acquire against the CITY by virtue of the payment of any loss under such insurance. CONSULTANT agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the CITY has received a waiver of subrogation endorsement from the insurer.

CONSULTANT shall require the insurer to provide CITY with 30-day prior notice of termination or material change in coverage and ten (10) days prior notice of cancellation for non-payment.

4 ProfServicesAgmTemplate2025

7. Indemnity:

CONSULTANT shall hold harmless, indemnify and defend CITY, its elective and appointive boards, commissions, officers, agents, servants, volunteers, and employees from and against any and all claims, costs, damages, liability, losses, or suits (including court costs and attorney fees) for personal injury (including death), property damage and any other damages of any sort whatsoever, arising out of, or alleged to have arisen out of, the willful or negligent acts, errors, or omissions of CONSULTANT or CONSULTANT'S contractors, subcontractors, agents, or employees in the performance of this Agreement. This indemnity shall not apply to any claims brought by CONSULTANT for default of this Agreement, or for claims brought by CITY or any third party where the underlying injury or damage is finally determined by a court of competent jurisdiction to arise solely from the negligent or willful misconduct of CITY.

For design professionals (as that term is defined by statute) acting within the scope of their professional capacity, to the fullest extent permitted by law, CONSULTANT shall, at its own expense, indemnify, protect, defend (by counsel reasonably satisfactory to the CITY) and hold harmless any Indemnified Parties from and against any and all Liability, whether actual, alleged or threatened, which arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, or as may be provided by statute in Civil Code § 2782.8, as may be amended from time to time.

CONSULTANT’s duty to indemnify, protect, defend and hold harmless as set forth in this section shall include the duty to defend (by counsel reasonably satisfactory to the CITY) as set forth in California Civil Code § 2778. The CONSULTANT’s responsibility to indemnify, defend, and hold harmless the Indemnified Parties under this section shall not extend to the active negligence or willful misconduct of the Indemnified Parties. This section shall survive the termination of this Agreement.

8. Termination:

This Agreement may be terminated by the CITY immediately for cause or by either party without cause upon fifteen days’ written notice of termination. Upon termination, CONSULTANT shall be entitled to compensation for services performed up to the effective date of termination.

CONSULTANT shall accept, for itself, as full payment for services rendered and all work to be done and performed hereunder and in complete satisfaction of all claims against CITY by reason of voluntary abandonment or suspension of work or termination of the Agreement, the sum determined on an hourly basis in accordance with the provisions of this Agreement, or any modification of amendment thereto, plus all direct expenses incurred, including those expenses incurred which are directly attributable to the incomplete portion of the work which could not be canceled.

In the event of termination, CONSULTANT shall deliver as a condition to the payment of the compensation provided for above, or otherwise make available to CITY, all research data, reports, estimates, summaries, and other such information and materials as may

5 ProfServicesAgmTemplate2025
have been accumulated by CONSULTANT in performing this Agreement, whether completed or in process in accordance with Section 9 of this Agreement.

9. Documents:

Notes, studies, chain, computations, electronic files, and other data and information obtained by CONSULTANT for this project shall, upon receipt of payment for services rendered, be made available to CITY by CONSULTANT at CITY'S request and shall become the property of CITY. In the event CITY alters the document, CITY agrees CONSULTANT shall have no responsibility whatsoever for any claim arising out of, or alleged to have risen out of, use of the altered document.

All plans, studies, documents, charts, computations, and electronic files prepared by and for CONSULTANT, its officers, employees and agents and subcontractors in the course of implementing this Agreement, except working notes and internal documents, shall become the property of the CITY upon payment to CONSULTANT for such work, and the CITY shall have the sole right to use such materials in its discretion without further compensation to CONSULTANT or to any other party. CONSULTANT shall, at CONSULTANT’S expense, provide such reports, plans, studies, documents, and other writings to CITY upon written request.

10. Independent Contractor:

CONTRACTOR is an independent contractor retained by CITY to perform the work described herein. ALL personnel employed by CONSULTANT are not and shall not be deemed to be employees of CITY. CONSULTANT shall obtain no rights to retirement benefits or other benefits that accrue to CITY’S employees, and CONSULTANT hereby expressly waives any claim it may have to such rights. CONSULTANT shall comply with all state and federal laws pertaining to employment and compensation of its employees and its agents, including the provision of Workers' Compensation.

11. Licenses:

CONSULTANT represents and warrants to CITY that it has all licenses, permits, qualifications, insurance, and approvals of whatsoever nature which are legally required of CONSULTANT to practice its profession. CONSULTANT represents and warrants to CITY that CONSULTANT shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, insurance and approvals which are legally required of CONSULTANT to practice its profession.

CONSULTANT shall maintain a City of Scotts Valley business license.

12. CITY Not Obligated to Third Parties; Subcontractors; Oversight:

The CITY shall not be obligated or liable for payment hereunder to any party other than the CONSULTANT. CONSULTANT shall ensure the following requirements are satisfied in the performance of the Agreement with respect to its own employees:

A. Workers’ Compensation. CONSULTANT certifies that it is aware of the provisions of the California Labor Code which require every employee to be

6 ProfServicesAgmTemplate2025
insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that Code, and CONSULTANT certifies that it will comply with such provisions before commencing performance of the Agreement and at all times in the performance of the Agreement.

B. Prevailing Wage. CONSULTANT and CONSULTANT’s subconsultants (if any) shall, to the extent required by the California Labor Code, pay not less than the latest prevailing wage rates to workers and professionals as determined by the Director of Industrial Relations of the State of California pursuant to California Labor Code, Part 7, Chapter 1, Article 2. Copies of the applicable wage determination shall be available on file at the CITY’s office of the City Clerk.

C. Injury and Illness Prevention Program. CONSULTANT certifies that it is aware of and has complied with the provisions of California Labor Code § 6401.7, which requires every employer to adopt a written injury and illness prevention program.

D. CONSULTANT shall pay all taxes, assessments and premiums under the federal Social Security Act, any applicable unemployment insurance contributions, Workers Compensation insurance premiums, sales taxes, use taxes, personal property taxes, or other taxes or assessments now or hereafter in effect and payable by reason of or in connection with the services to be performed by CONSULTANT.

The CITY is not responsible or liable for CONSULTANT’s failure to comply with any and all of its requirements under this section and Agreement.

13. Political Reform Act Economic Interests:

If CITY determines CONSULTANT comes within the definition of CONSULTANT under the Political Reform Act (Government Code §87100), CONSULTANT shall complete and file and shall require any other person doing work under this Agreement to complete and file a “Statement of Economic Interest” with the Clerk of the City of Scotts Valley disclosing CONSULTANT and/or such other person’s financial interests.

14. Assignment:

The parties recognize that a substantial inducement to CITY for entering into this Agreement is the professional reputation, experience, and competence of CONSULTANT. Assignments of any or all rights, duties, or obligations of the CONSULTANT under this Agreement will be permitted only with the express consent of the CITY. CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of the CITY. If the CITY consents to such subcontract, CONSULTANT shall be fully responsible to CITY for all acts or omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between CITY and subcontractor nor shall it create any obligation on the part

7 ProfServicesAgmTemplate2025
of the CITY to pay or to see to the payment of any monies due to any such contractor other than as otherwise required by law.

15. Binding on Successors:

This Agreement is binding on the heirs, successors and assigns of the parties hereto.

16. Amendment:

This Agreement may be amended, modified, or changed by the parties, provided that said Agreement, modification or change is in writing and approved by the authorized representative of the parties.

17. Applicable Law and Attorney's Fees:

This Agreement shall be construed and enforced in accordance with the laws of the State of California, and any action brought relating to this Agreement shall be held exclusively in a state court in the County of Santa Cruz. Should any legal action be brought by a party for breach of this Agreement or to enforce any provision of the Agreement, the prevailing party of such action shall be entitled to recover its reasonable litigation expenses, including attorney fees.

18. Entire Agreement:

This Agreement contains the entire understanding between the parties with respect to the subject matter herein. There are no representations, agreements, or understandings. Whether oral or written, between or among the parties relating to the subject matter of this Agreement which are not fully expressed herein. The drafting and negotiation of this Agreement have been participated in by each of the parties and/or their counsel, and for all purposes this Agreement shall be deemed to have been drafted jointly by all parties.

19. Waiver:

Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this agreement.

20. Severability:

If any term or portion of this Agreement shall be held by a court of competent jurisdiction to be invalid, illegal, or otherwise unenforceable, the remaining provisions of this Agreement shall continue in full force and effect.

WITNESS WHEREOF this Agreement is executed by CITY and by CONSULTANT on this __28th__ day of ____May____ 2026, at Scotts Valley, California.

CONSULTANT CITY OF SCOTTS VALLEY
**signature_130929**

SIGNATURE
Josephine Fleming, Owner

FULL NAME
**date_signed_130929**

DATE SIGNED
**signature_130930**

SIGNATURE
Mali LaGoe, City Manager

FULL NAME
**date_signed_130930**

DATE SIGNED
APPROVED AS TO FORM: KIRSTEN POWELL, CITY

ATTORNEY
ATTEST:
**signature_130936**

SIGNATURE
Kirsten M. Powell, City Attorney

FULL NAME
**date_signed_130936**

DATE SIGNED
**signature_130931**

SIGNATURE
Cathie Simonovich, City Clerk

FULL NAME
**date_signed_130931**

DATE SIGNED

Exhibits List
A - SV EI Proposal 26_27_rev1

Exhibit A
SV EI Proposal 26_27_rev1

FY 2026/27 Scope of Work
Services included:

Wastewater Source Control,
NPDES / MS4 Stormwater,
Solid Waste Compliance,
Edible Food Recovery,
and Transportation Consulting
Submitted by:

Environmental Innovations, Inc.

May 27, 2026

May 27th, 2026
City of Scotts Valley
Attn: Rodolfo Onchi
Public Works Director
RE: 2026/27 Proposal and Scope of Work
Dear Mr. Onchi:

Thank you for the opportunity to continue offering services to the City of Scotts Valley and giving us this opportunity to propose work for the 2026/2027 fiscal year. As you know, Environmental Innovations (EI) has been conducting the following services for the City of Scotts Valley:
● Environmental compliance and source control since 2007; ● Stormwater/NPDES Permit compliance since 2009;
● Transportation grant services since 2015, and;
● Implementation of AB341/AB1826/SB1383 recycling and organic waste diversion requirements and Edible Food Recovery since 2019
EI is uniquely qualified to perform this work. We are a local, sustainability consulting firm working with several municipalities in the region, across California, and in partnership with nine other states. EI provides environmental consulting services to businesses, non-profits, institutions, local, state, and the federal government in the areas of Green Business, environmental awareness, public outreach, environmental compliance, wastewater pretreatment, and sustainability planning and management.

In 2023 we obtained a $75,000 grant and in 2019 we obtained $21,000 from CalRecycle to help offset the costs of implementing SB1383 requirements. In 2017, we obtained over $700,000 in grant funding for the City to do road improvements and active transportation outreach. We also implemented a grant for the safe disposal of sharps (needles) and pharmaceutical waste regionally in the County of Santa Cruz in 2010. We have also been the key drivers behind the Monterey Bay Green Business Program as well as the California Green Business Network.

We are happy to modify this proposal to suit your needs. EI looks forward to the opportunity to do this inspiring work. Please do not hesitate to contact us with questions.

Sincerely,
Josephine Fleming
Environmental Scientist and Owner [email protected] City of Scotts Valley 2026/27 Scope of Work 2

Scope of Environmental Compliance Services in the City of Scotts Valley Environmental Innovations (environmentalin.com, EI) provides environmental consulting services to businesses, non-profits, institutions, and local governments in the areas of Green Business, environmental awareness, public outreach, Environmental Compliance/Wastewater Pretreatment, and Sustainability Planning and Management. Our strengths lie in the following:
● Excellent Facilitation and Communication: EI coordinates many multi-stakeholder groups that frequently have competing interests. We can recognize individual strengths and highlight them in group settings. We are also able to leverage sharing costs for work with neighboring Cities and Counties that have the same mandates. We maintain strong relationships with neighbors and higher state regulatory agencies, such as the Regional Water Quality Control Board. ● Data and Technology Strong: We are the architects and ongoing developers of the software used to track green businesses in California through the certification program while simultaneously measuring environmental outcomes. Our system, GreenBizTracker, is leased by eight other states.

We research the best and most cost-effective solutions to meeting regulatory mandates and tracking of the data necessary to comply. We can tie in Scotts Valley work with other work we do in the region, making the City’s contribution to public outreach and partnership stronger. ● Experienced Wastewater and Stormwater Experts: Jo has been working in wastewater and stormwater environmental compliance for over 15 years with significant experience in gaining compliance from business and industry with the least amount of conflict possible. Julianne has a Masters in Applied Marine and Watershed Science from CSU Monterey Bay and Claudia brings expertise in bilingual outreach and assisting businesses achieve sustainable practices. The team can dovetail the three programs through public outreach, technical assistance, and incentives to make the programs more educational than they are regulatory. Julianne also has significant knowledge in watershed modeling and complying with the MS4 NPDES permit. ● Sustainable Results: We are proud to have long-term clients. Many of the environmental programs we implemented from scratch continue to run independently. We design our work to have lasting effects, and to benefit our clients. There’s nothing we enjoy more than seeing municipal clients get long-term credit for our work.

Project Description: The City of Scotts Valley requested a proposal to provide the following:
● Source Control and Environmental Compliance
● Stormwater Environmental Compliance with an MS4 NPDES Permit. ● Solid Waste and Recycling Compliance with AB 341, AB 1826, and SB 1383 ● Edible Food Recovery as mandated in SB 1383
● Transportation Funding Development as needed
● Pursuit of grant funding opportunities as needed
● Plan review as needed
City of Scotts Valley 2026/27 Scope of Work 3

Source Control and Environmental Compliance Workplan
Assess all business and industry in Scotts Valley for potential adverse impact to wastewater and/or stormwater and maintain a database of sites to monitor, sites to inspect, and sites considered “dry” or not a potential impact. Regularly review business license list for new businesses which may require regulatory review.

Inspect 100 businesses per year that may pose an adverse impact on storm or wastewater and inspect and regulate by permit 3-4 significant industrial users. Enact enforcement response wastewater compliance, estimating 10 cases of enforcement/year.

Review plans for new construction pertaining to environmental compliance on an as-needed basis.

AB1826/SB1383 Organic Waste Diversion Program Compliance Participation and Compliance
Ensure that all business, multi-family dwellings, and residential waste accounts subscribe to organic waste collection service or apply for an exemption. Issue limited exemption waivers for de minimis volumes and physical space constraints and maintain records:
● Maintain online form for waiver request
● Evaluate waiver requests on case-by-case basis and grant waiver when criteria have been met ● Track waivers for reporting purposes
Education and Outreach
Maintain a list of and annually provide Tier 1 generators utilizing the three‐container system with information on properly separating materials, organic waste prevention, on‐site recycling, methane reduction benefits, how to recycle organic waste, a list of approved haulers, and information related to food recovery.

Maintain a list of and annually provide Tier2 generators utilizing the three‐container system with information on properly separating materials, organic waste prevention, on‐site recycling, methane reduction benefits, how to recycle organic waste, a list of approved haulers, and information related to food recovery.

Annually provide self‐haulers with information regarding their requirements (outlined in Section 70.3) Annually provide businesses that generate edible food waste with information regarding the jurisdiction’s edible food recovery program, generator requirements, and food recovery organizations.

Record Keeping & Reporting
Submit an annual report to CalRecycle by the August 1
st due date.

Maintain all implementation records in a central location (physical or electronic) that can be made available to or accessed by CalRecycle within one business day.

Enforcement
To comply with Sections 18995.1 and 18995.4, the City of Scotts Valley (hereinafter "the jurisdiction") has established an Inspection and Enforcement Program dedicated to monitoring adherence to SB 1383 mandates for organic waste collection, disposal reduction, and proper donation of excess edible food.

City of Scotts Valley 2026/27 Scope of Work 4

National Pollution Discharge Elimination System (NPDES) Permit for Small Municipal Stormwater Systems Workplan
The original NPDES permit expired in 2018. The updated permit with new requirements is expected to be issued in 2026. Until then, jurisdictions must continue to carry out the requirements of the prior permit which include:

E.6 – Program Management
Use Enforcement Response Plan developed in Permit Year 3 (PY3), to enforce procedures and actions and identify the Permittee’s responses to violations and describe how the Permittee will address repeat and continuing violations by implementing progressively stricter responses as needed to achieve compliance.

E.7 – Education and Outreach
The Public Education and Outreach Program increases the knowledge and awareness of a targeted audience about the impacts of urban runoff and non-storm water discharges on receiving waters, and potential BMP solutions for the target audiences, thereby reducing pollutant releases to the MS4 and the environment. It is a combination of jurisdictional and regional programs consisting of the following:
● Schools - Watershed education targeting middle-school children. ● Outreach and Workshops - These are aimed at specific sectors. This year, we propose doing a Facebook and Instagram campaign with posts featuring stormwater pollution prevention tips and BMPs.

F.7.b. Staff and Site Operator Training and Education
This biennial training shall include a general stormwater education component, any new technologies, operations, or responsibilities that arise during the year, and the permit requirements that apply to the staff being trained. Employees shall receive clear guidance on appropriate stormwater BMPs to use at municipal facilities and during typical O&M activities.

E.8 – Public Involvement and Participation Program
Create opportunities for citizens to participate in the implementation of BMPs through sponsoring activities (e.g., stream/beach/lake clean-ups, storm drain stenciling, volunteer monitoring and educational activities).

Ensure the public can easily find information about the Permittee’s storm water program. Actively engage in the Permittee’s IRWMP or other watershed-level planning effort. ● Snapshot Day - Annual event that involves the public directly in water quality monitoring in local creeks.
● Storm Water Resource Plan – developed with the IRWM group in PY3 and PY4 ● Property Owners and Managers - specific outreach as it relates to maintaining outdoor areas.

F.9 – Illicit Discharge and Elimination
Maintain an existing up-to-date outfall map, develop and enforce a program to detect, investigate, and eliminate illicit discharges, including illegal dumping into its system from outfalls and other sources, to the extent allowable under law. Outfalls must be inspected and a list of priority outfalls is updated annually. This year we are seeking a CA Department of Fish and Wildlife permit to clear vegetation from the creeks to City of Scotts Valley 2026/27 Scope of Work 5

allow outfall access. We are also seeking grant funds to offset vegetation management costs.

E.9.b. Illicit Discharge Source/Facility Inventory
The Permittee shall maintain an inventory of all industrial/commercial facilities/sources within the Permittee's jurisdiction (regardless of ownership) that could discharge pollutants in storm water to the MS4. We utilize the inventory to identify facilities for inspections of potential illicit discharges and determine if the facilities that are required to be covered under the Statewide Industrial General Permit have done so. We also update the inventory annually and assess priority “hot spot” areas for the presence of illicit discharges at least once over the length of the permit term. Methods include field observations, field screening, inspections, and any other appropriate and effective survey methods.

E.9.c. Field Sampling to Detect Illicit Discharges
The Permittee shall sample any outfalls that are flowing or ponding more than 72 hours after the last rain event. The Permittee shall also conduct dry weather sampling (more than 72 hours since the last rain event) of outfalls annually identified as priority areas. Permittee shall verify that indicator parameter Action Level Concentrations are not exceeded and conduct follow up investigations per Section E.9.d. if the action level concentrations are exceeded. Any remaining outfalls with dry weather flow will be targeted for pathogen reduction efforts.

E.11 – Pollution Prevention/Good Housekeeping
The Permittee shall use SWPPP developed in PY4 to assess pollutant hotspots. At least once per year, the Permittee shall conduct a comprehensive inspection of each hotspot facility, including all stormwater BMPs, in accordance with the facility-specific inspection procedures and inspection checklist. At least once per quarter visually observe discharge locations from hotspot facilities. Visual observations shall be documented, and records kept with the SWPPP. This inspection shall be done in accordance with the developed standard operating procedures. The inspection report shall also include any identified deficiencies and the corrective actions taken to correct the deficiencies.

E.11.g. Maintenance of Storm Drain System
We inspect storm drain systems all high priority, catch basins and systems annually and ensure the following is done:
● Identify high priority catch basins and other systems for cleaning. ● Label catch basins to ensure that each catch basin in high foot traffic areas includes a legible storm water awareness message.
● Identify surface drainage structures in need of maintenance. Removal of trash and debris from high priority areas shall occur annually prior to the rainy season.

E.12. Post-construction Operations & Maintenance Verification Maintain a spreadsheet of all Regulated Projects (public and private projects that create or replace 5,000 square ft or more of impervious surface) that have installed treatment systems. ● Maintenance Approvals: contact the responsible party for each Regulated Project annually to request a maintenance report.
● Maintenance and condition of structural post-construction BMPs shall be determined through a self-certification program where Permittees require annual reports from authorized parties City of Scotts Valley 2026/27 Scope of Work 6

demonstrating proper maintenance and operations.
● If the self-report is not sufficient to determine proper maintenance operations, follow up inspections and enforcement may be carried out to ensure full compliance with E.12.i E.15 – Program Effectiveness Assessment and Implementation The Program Effectiveness Assessment and Improvement Plan assesses BMP and program effectiveness in terms of the following Outcome Levels:
● Storm water program activities
● Awareness
● Behavior
● Pollutant load reductions
● MS4 discharge quality (where assessment is supported by MS4 discharge quality data) ● Receiving water conditions
E.16 – Total Maximum Daily Loads Compliance Requirements Several watersheds within Santa Cruz County have been identified by the State of California as impaired waterbodies pursuant to Section 303(d) of the Federal Clean Water Act (CWA). The overarching goal of each TMDL is to identify sources of contamination and develop strategies to meet specific targets within a 20 to 25-year timeframe. Carbonera Creek has TMDLs for sediment and bacteria. Extensive stakeholder collaboration between the regional stakeholders to identify MS4 pollution sources and implement best management practices (BMPs), monitoring programs, and modeling tools to aid in achieving each TMDL is carried out each year and documented in an annual report.

E.17 – Annual Reporting Program
Permittees shall prepare and submit an annual report by October 15 th
, with documentation supporting
required activities from the previous permit year beginning July 1st and ending June 30th. The Permittee is responsible for maintaining documentation as necessary to demonstrate fulfillment of all NPDES MS4 Permit requirements.

Project Tasks and Estimated Costs
Source Control and Environmental Compliance Timeline
Estimated
Hours
Estimated Cost
Assess all business and industry in Scotts Valley for potential to impact wastewater and/or stormwater. Maintain a database of sites to monitor, sites to inspect, and sites considered “dry” or not a potential impact.

FY 26/27 10 1,400
Inspect 100 businesses per year considered to be potential impact.

Inspect and regulate by permit 5 significant industrial users.

FY 26/27 300 42,000
Enforcement Response of wastewater compliance, estimating 10 cases of enforcement/year
FY 26/27 30 4,200
Plan reviews for new construction pertaining to environmental compliance
As
needed
20 3,300
Total for Source Control and Compliance Services: $50,900 City of Scotts Valley 2026/27 Scope of Work 7

Solid Waste, Recycling, and Edible Food Recovery Services Timeline Estimated
Hours
Estimated Cost
Ensure the requirements and record keeping of organic material and recycling are met in accordance with SB1383, AB341, and SB1826 FY 26/27 200 28,000
Enforcement response: serve notices of violation to noncompliant businesses
FY 26/27 40 5,600
Submit Electronic Annual Report (EAR) to CalRecycle
Due Aug
1st
40 5,600
Total for Solid Waste, Recycling, and Edible Food Recovery Services: $39,200 MS4 NPDES Permit Compliance FY 2026/2027 Timeline
Estimated
Hours
Estimated Cost
E.6 Program Management: Implement the enforcement response plan for stormwater violations, estimating 10 cases of
enforcement/year.

FY 26/27 40 6,600
E.7 Education and Outreach: oversee school outreach conducted by CWC, Property Managers outreach, and outreach to businesses adjacent to the creeks.

FY 26/27 36
5,040
E.8 Public Involvement and Participation. Trash, TMDL, and CBSM may have a heavier aspect this FY if the permit is reissued.

FY 26/27 40 5,600
E.9 Illicit Discharge Elimination (E.9b inventory and inspections included above in Environmental Compliance.

FY 26/27 25 3,500
E.9c Field Sampling to detect illicit discharges Annually 20 3,300 E.11 Pollution prevention/good housekeeping inspection Quarterly 20 3,300 E.12 Maintain a spreadsheet of all Regulated Projects that have installed treatment systems. Enter data into OpenGov this year and ensure that the responsible party is contacted for maintenance, payment, and follow up as necessary to meet full compliance.

FY 26/27 50 8,250
E.14 Program Effectiveness Assessment and Implementation:

Include the BMP effectiveness assessment and trash capture implementation and reporting
FY 26/27 45
7,425
E.15 Total Maximum Daily Load (TMDL) reporting requirements FY 26/27 20 3,300 Annual Reporting: Answer SMARTS questions (10), generate and provide backup documents where required (10), ensure that paper files are Audit ready, an ongoing task (20).

Due
10/16/26
45 7,425
Mileage and Materials Annually - 500
Total: $54,240
Total for all services: $144,340
Tracking, reporting, client requests, and administration FY 26/27 4% 5,774 Total for 2026/27 FY: $150,114
Assurances: EI services are done with Professional and General Liability insurance up to 2,000,000.

Workers’ Compensation and automobile insurances of up to $1,000,000. Although EI maintains the extensive insurances often required by government and institutional clients, EI has never been involved in any lawsuit or litigation for any of its work. EI will provide a Certificate of Insurance, naming the City of Scotts Valley as additional insured upon request.

City of Scotts Valley 2026/27 Scope of Work 8

Rates: It is expected that this project will be completed by the Senior Scientist and Compliance Inspector.

Hourly Rate Sheet
References
EI delivers programs successfully within the budget and schedule indicated on the contract. Following is a table detailing most recent and relative clients. Any client may be contacted for references for verifying the quality of work provided.

Project Name Client/Contact Description of Work Performed Compliance Management,
Outreach and SB1383
Organics Recycling
Program Implementation
City of Capitola
Jessica Kahn
Public Works Director
[email protected]
Worked with waste hauler to ensure that
all business and residential waste
accounts are compliant with the latest
organic material recycling laws
Single-use Plastics and
Foodware Ordinance
Technical Assistance and
Outreach
City of Seaside
Beth Rocha
831-899-6728
[email protected]
Foodware Ordinance Technical Assistance
and Outreach - Created “Turn the Tide on
Plastic” campaign and outreach materials,
direct technical assistance and outreach to
150 businesses and food facilities,
emphasis on switching to reusables.

Partnered with ReThink Disposable.

Outreach & Engagement
Services for San Mateo
County: Foodware
Aware and Edible Food
Recovery Programs
County of San Mateo
Chris Slafter, Senior
Sustainability Specialist
[email protected]
Performed detailed Scopes of Work for
Custodial and Landscaping Services to
ensure sustainable operations. Assisted
with STARs reporting for recognition and
stormwater compliance. Drafted a
Materials Management and Conservation
Plan to reach required diversion goals.

Disposable Foodware &
Waste Reduction Program
Implementation
City of Watsonville
Cristy Cassel
831-768-3166
[email protected]
Assess impact of the City of Watsonville’s
Disposable FoodWare & Waste Reduction
Ordinance, provide technical assistance
and resources and connect businesses
with Plastic Free Restaurant rebates.

City of Scotts Valley 2026/27 Scope of Work 9

Resumes
Josephine (Jo) Fleming
Owner and President, Environmental Innovations
Jo has 30 years experience in the environmental realm in a wide breadth of scientific research, environmental remediation, commercial/industrial pollution prevention, environmental outcome data and community-based social marketing programs to address some of the most pressing environmental problems of our time. Jo was integral to establishing over twenty regional Green Business Programs, a statewide Green Business Network, a groundbreaking fryer to fuel program, and one of the first comprehensive pharmacy collections of used sharps and unwanted medicine waste for safe disposal. She has been involved in implementation of municipal foodware ordinances, organic recycling and edible food recovery, and stormwater and wastewater compliance. Jo enjoys designing methods to measure success before implementing programs and has environmental outcome data for every project. She has a Bachelor of Science in Environmental Science and a Minor in Spanish. She has helped green hundreds of businesses, and was the Executive Director of the California Green Business Network for 10 years and is the founder of Environmental Innovations, Inc.. Jo led the company to grow ethically as a certified B Corp, attracting and retaining top talent and a diverse team.

Julianne Rhodes
Vice President of Technology and Environmental Programs Julianne has worked in both the public and private sectors developing specifications for on-site regulatory compliance of projects involving the assessment and removal of hazardous materials from 1987 to 1996.

She gained extensive project, personnel, technology and contract management experience during her 12 years as engineering manager at Cruzio.com and subsequently earned a Masters in Applied Marine and Watershed Science at CSU Monterey Bay. Her focus on water quality and conservation efforts has led to projects working for the Monterey Peninsula Water Management District, Coastal Watershed Council, Farmers for Water Quality, the Watershed Institute at CSUMB, the Greater Monterey Integrated Regional Water Management Group, City of Scotts Valley, and the City of Salinas. She has developed Storm Water Pollution Prevention Plans (SWPPPs) for both the municipal and industrial NPDES permit program.

City of Scotts Valley 2026/27 Scope of Work 10

Amy Gross
Vice President of Sustainability Programs
Amy Gross is Vice President of Sustainability Programs, leading initiatives to reduce environmental impacts and advance ESG goals. She previously served as Sustainability Principal at L3Harris, managing programs across 40 global sites and implementing projects like a stormwater reuse system saving over 20 million gallons annually. Amy also led ESG strategy at Joby Aviation and directed Santa Cruz County’s Environmental Compliance Program, co-founding the Monterey Bay Area Green Business Program. She holds a B.A. in Environmental Studies from UC Santa Cruz and an M.S. in Sustainability Leadership from Arizona State University. Amy is a certified Qualified Industrial Stormwater Professional (QISP).

Claudia Villalta-Mejia
Bilingual Sustainability Consultant
Claudia Villalta-Mejia comes to EI with experience in both corporate and university campus sustainability programs. Claudia graduated with honors from California State University, Long Beach and majored in Film and Electronic Arts, with a minor in Environmental Science and Policy. She pioneered sustainability initiatives in student films, which at the time was a new topic for many student filmmakers. She spent nearly 4 years working on corporate sustainability programs including eliminating single use-plastics, implementing programs for television shows and feature films, and strategizing carbon mitigation. As a Santa Cruz County local who was raised to value and appreciate the people, animals and habitat around her, Claudia is thrilled to reconnect and give back to her community.

City of Scotts Valley 2026/27 Scope of Work 11

AGENDA ITEM 8.

DATE: 6/17/2026
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 6/17/2026
TO: Honorable Mayor and City Council
FROM: Rodolfo Onchi, Public Works Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Final Map and Improvement Agreement for Beverly Gardens, a 25- Unit Affordable Apartment Community, Located at 4444 Scotts Valley Drive/APNs 022-491-04 and 022-491-06

SUMMARY OF ISSUE
The Beverly Gardens project is a proposed 25-unit affordable apartment community located at 4444 Scotts Valley Drive (APNs 022-491-04 and 022-491-06). The project was submitted to the City on June 11, 2024, and was processed in accordance with applicable State housing streamlining provisions for qualifying affordable housing developments.

As approved, the project includes a condition requiring the consolidation of the existing two parcels into a single legal lot to ensure consistency with the approved site design and development configuration. The applicant has now submitted a Final Map and Improvement Agreement to satisfy this requirement and facilitate recordation of the map.

The Final Map is required to formally establish the parcel configuration necessary for development of the Beverly Gardens project. The map includes the merger of APNs 022-491- 04 and 022-491-06 into a single legal parcel consistent with the approved entitlement. In addition, the Improvement Agreement is required to ensure completion of public improvements associated with the project, including securing performance obligations prior to recordation of the Final Map. These obligations ensure that required infrastructure improvements are completed in accordance with City standards.

Although the project was reviewed under State affordable housing streamlining provisions, including ministerial processing where applicable, Final Map approval and recordation remain subject to local subdivision requirements and require City Council action. Approval of the Final Map and Improvement Agreement will allow the project to proceed toward recordation and subsequent completion and occupancy of the approved affordable housing development.

FISCAL IMPACT
There is no fiscal impact to the General Fund. All applicable City costs associated with

processing the Final Map and Improvement Agreement are covered by project-related fees paid by the applicant.

STAFF RECOMMENDATION
It is recommended that the City Council approve Resolution No.2097, approving the Final Map, and Resolution No. 960.93, approving the Improvement Agreement for the Beverly Gardens Affordable Apartment Community, APNs 022-491-04 and 022-491-06.

TABLE OF CONTENTS

1. Resolution No. 960.93 Approval of Improvement Agreement Beverly Gardens

2. Beverly Gardens Parcel Improvement Agreement - signed

3. Resolution No. 2097 Approval of Final Map Beverly Gardens

4. Final Map_Beverly Gardens

RESOLUTION NO. 960.93

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY APPROVING THE IMPROVEMENT AGREEMENT FOR BEVERLY GARDENS, A 25- UNIT AFFORDABLE APARTMENT COMMUNITY, LOCATED AT 4444 SCOTTS VALLEY DRIVE, APNS 022-491-04 AND 022-491-06
WHEREAS, the Beverly Gardens project is a proposed 25-unit affordable apartment community located at 4444 Scotts Valley Drive, Assessor’s Parcel Numbers 022-491- 04 and 022-491-06; and
WHEREAS, as a condition of project approval, the applicant is required to enter into an Improvement Agreement to ensure completion of required public improvements associated with the project; and
WHEREAS, the Improvement Agreement secures the applicant’s obligations for construction and completion of public improvements in accordance with City standards and conditions of approval; and
WHEREAS, the City Council has reviewed the proposed Improvement Agreement and finds it appropriate to ensure performance and completion of required improvements; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Scotts Valley as follows:

1. Approves the Improvement Agreement for the Beverly Gardens project located at 4444 Scotts Valley Drive (APNs 022-491-04 and 022-491-06); and

2. Authorizes the City Manager or designee to execute the Improvement Agreement on behalf of the City and to take all actions necessary to implement its terms.

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 17th day of June 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Approved:

Donna Lind, Mayor
Attest:

Cathie Smonovich, City Clerk

RESOLUTION NO. 2097

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY APPROVING THE FINAL MAP FOR BEVERLY GARDENS, A 25-UNIT
AFFORDABLE APARTMENT COMMUNITY, LOCATED AT 4444 SCOTTS VALLEY DRIVE, APNs 022-491-04 AND 022-491-06
WHEREAS, the Beverly Gardens project is a proposed 25-unit affordable apartment community located at 4444 Scotts Valley Drive, Assessor’s Parcel Numbers 022-491- 04 and 022-491-06; and
WHEREAS, as a condition of project approval, the applicant is required to merge the existing parcels into a single legal lot consistent with the approved development configuration; and
WHEREAS, the applicant has submitted a Final Map to satisfy said condition and to establish the legal parcel configuration necessary for development of the project; and WHEREAS, the Final Map has been reviewed by City staff for compliance with applicable local requirements and conditions of approval; and WHEREAS, the City Council of the City of Scotts Valley is the appropriate authority to approve Final Maps pursuant to applicable provisions of the Scotts Valley Municipal Code and State law;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Scotts Valley as follows:

1. Approves the Final Map for the Beverly Gardens project located at 4444 Scotts Valley Drive (APNs 022-491-04 and 022-491-06); and

2. Authorizes the City Engineer or designee to take all necessary actions to facilitate recordation of the Final Map in accordance with applicable requirements.

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 17th day of June 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Approved:

Donna Lind, Mayor
Attest:

Cathie Simonovich, City Clerk

PARCEL MAP
Civil
Engineering Associates
• •

PARCEL MAP
Civil
Engineering Associates
• •

DETAIL A DETAIL B DETAIL C

DETAIL D DETAIL E

DETAIL F

MAP REFERENCES
NOTES

BASIS OF BEARINGS

PARCEL MAP
Civil
Engineering Associates
• • ABBREVIATIONS
LEGEND
NOTE

NOTES

BASIS OF BEARINGS

PARCEL MAP
Civil
Engineering Associates
• • ABBREVIATIONS
LEGEND

DETAIL G

AGENDA ITEM 9.

DATE: 6/17/2026
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 6/17/2026
TO: Honorable Mayor and City Council
FROM: Stephanie Hill, Administrative Services Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Approval of Amended and Restated Loan, Repayment, and Security Agreement and Replacement Deeds of Trust for the Four Points by Marriott Hotel Located at 5030 Scotts Valley Drive

SUMMARY OF ISSUE
The Four Points by Marriott Hotel located at 5030 Scotts Valley Drive was developed with financial assistance provided by the City through two separate programs.

First, in 2015 the City entered into a City Assistance Agreement designed to support hotel development and increase transient occupancy tax ("TOT") revenue generation within the City.

Through that program, the City provided financial assistance totaling approximately $1.789 million, consisting of direct City assistance and TOT-related financing support.

Second, in 2018 the City approved a Development Impact Fee ("DIF") Deferral Agreement that allowed the hotel owner to defer payment of development impact fees totaling $555,180.68.

The deferred fees accrued interest and were secured by a promissory note and deed of trust recorded against the property.

Following acquisition of the project by Scotts Valley Hotel, LP, the City approved an Assignment, Assumption and Consent Agreement allowing the current ownership entity to assume the obligations associated with the project.

The hotel subsequently experienced significant operational challenges associated with the COVID-19 pandemic and the broader hospitality industry recovery. As a result, the borrower requested modifications to the existing repayment structures in order to improve cash flow and better align repayment obligations with anticipated hotel performance.

Over the past year, staff reviewed the hotel's financial information, operating projections, and repayment proposals. Staff evaluated several alternatives and determined that certain modifications could be supported while maintaining the City's ability to recover the outstanding obligations in full.

The proposed agreement consolidates the repayment obligations into a single governing document while maintaining the City Assistance Loan and DIF Loan as separate obligations for

accounting and enforcement purposes. The amendments do not forgive any debt owed to the City. All principal and accrued interest remain due and payable under the revised terms.

The proposed amendments include the following:

City Assistance Loan
The existing City Assistance Loan principal amount remains unchanged at $1,789,000 and continues to accrue simple interest at 3.25 percent. The loan remains structured to mature twenty years following issuance of the Certificate of Occupancy and will continue to be repaid over a five-year amortization period thereafter.

The proposed agreement modifies the TOT repayment credit mechanism. Under the amended structure, annual TOT generated by the hotel in excess of $350,000 during a City fiscal year will be applied directly to reduce principal outstanding on the City Assistance Loan.

Development Impact Fee Loan
The DIF Loan principal amount remains unchanged at $555,180.68 and continues to accrue simple interest at 3.25 percent. The proposed amendment extends the commencement of repayment to September 2028 and restructures repayment over a ten-year amortization period.

Assignment and Assumption
The proposed agreement also modernizes the assignment provisions and expressly permits future purchasers of the hotel property to assume the obligations, subject to City approval and execution of appropriate assumption documentation.

FISCAL IMPACT
Approval of the proposed agreement will not result in forgiveness of any outstanding debt owed to the City.

The amendments are intended to improve the likelihood of full repayment by aligning repayment obligations with anticipated hotel operating performance and providing additional flexibility during the recovery period.

STAFF RECOMMENDATION
Adopt Resolution No. 2098 approving the Amended and Restated Loan, Repayment, and Security Agreement between the City of Scotts Valley and Scotts Valley Hotel, LP; authorize the City Manager to execute the Agreement and associated documents in forms acceptable to the City Attorney; and authorize recording of Deeds of Trust securing the obligations.

TABLE OF CONTENTS

1. Amended and Restated Loan Agreement

2. Exhibit A DIF Loan Amortization

3. Resolution No. 2098 Approving Amended and Restated Loan Agreements

AMENDED AND RESTATED LOAN, REPAYMENT, AND SECURITY AGREEMENT

RECITALS
A. Borrower owns that certain real property located at 5030 Scotts Valley Drive, Scotts Valley, California, Assessor Parcel Number 022-091-61 (“Property”), improved with the Four Points by Marriott Hotel (“Hotel”).

B. City previously entered into agreements relating to financial assistance and development impact fee deferral for construction and operation of the Hotel.

C. Borrower received or assumed City financial assistance totaling $1,789,000 consisting of $550,000 in direct City assistance funds and $1,239,000 in transient occupancy tax assistance and related financing support (“City Assistance Loan”) which is secured by a promissory note and deed of trust.

D. Borrower also received or assumed deferred payment of development impact fees in the principal amount of $555,180.68 (“DIF Loan”) which is secured by a promissory note and deed of trust.

E. The parties desire to amend, restate, consolidate, and supersede prior repayment provisions through this Agreement while preserving the enforceability and security of the obligations.

NOW, THEREFORE, the parties hereby agree as follows:

ARTICLE 1 – DEFINITIONS

1.1 “Certificate of Occupancy” means the final certificate of occupancy issued for the Hotel project on February 14th, 2019.

1.2 “City Assistance Loan” means the loan obligation described in Section 2.1.

1.3 “DIF Loan” means the development impact fee obligation described in Section 2.2.

1.4 “Fiscal Year” means the City of Scotts Valley fiscal year of July 1 – June 30.

ARTICLE 2 – CONSOLIDATED OBLIGATIONS

2.1 City Assistance Loan. Borrower acknowledges and agrees that the original principal balance of the City Assistance Loan is $1,789,000 bearing interest at 3.25% simple interest per annum from date of disbursement.

2.2 DIF Loan. Borrower acknowledges and agrees that the original principal balance of the DIF Loan is $555,180.68 bearing interest at 3.25% simple interest per annum from February 7, 2018.

2.3 Separate Obligations. The City Assistance Loan and DIF Loan shall remain separate obligations for accounting, repayment allocation, and enforcement purposes notwithstanding consolidation into this Agreement.

ARTICLE 3 – CITY ASSISTANCE LOAN REPAYMENT

3.1 Maturity and Repayment Structure. The City Assistance Loan shall mature twenty (20) years following issuance of the Certificate of Occupancy for the Hotel and thereafter be amortized and repaid in equal monthly installments over five (5) years pursuant to Exhibit A.

3.2 TOT Threshold Credit Mechanism. For each Fiscal Year during the term of this Agreement, any TOT remitted to City in excess of $350,000 shall be applied as a direct reduction to principal outstanding under the City Assistance Loan.

The threshold mechanism applies solely to the City Assistance Loan and not the DIF Loan. A fixed amortization schedule has not been prepared or included. The final amortization schedule will be established once the principal balance is known at the beginning of the repayment period, after accounting for all applicable principal reductions resulting from the TOT Threshold Credit Mechanism.

ARTICLE 4 – DIF LOAN REPAYMENT

4.1 Deferred Commencement. Repayment of the DIF Loan shall commence on September 1, 2028.

4.2 Repayment Term. The DIF Loan shall be amortized and repaid in equal monthly installments over a ten (10) year repayment term pursuant to Exhibit A.

4.3 Prepayment. Borrower may prepay all or any portion of the DIF Loan without penalty.

ARTICLE 5 – SECURITY

5.1 Deed of Trust. Concurrently with execution of this Agreement, Borrower shall execute and deliver to City an Amended and Restated Deed of Trust for each loan securing all obligations under this Agreement, copies of which are attached hereto as Exhibit B.

5.2 Recordation. City may record this Agreement, the Deeds of Trust, and any related instruments against the Property.

ARTICLE 6 – ASSIGNMENT AND ASSUMPTION

6.1 Assignment Subject to City Consent. Borrower may transfer ownership of the Property. In the event of such transfer, Borrower shall either repay all outstanding amounts under this Agreement or assign the obligations under this Agreement to a successor owner, subject to prior written consent of City, which consent shall not be unreasonably withheld.

6.2 Assumption Agreement. Any successor owner shall execute a written assumption agreement acceptable to City and record such agreement against the Property.

ARTICLE 7 – EVENTS OF DEFAULT
The following events constitute an event of default:

7.1 Payment Default. Failure to pay principal, interest, or other amounts when due under the deed of trust or loan agreement.

7.2 Misrepresentation. Any material representation or warranty made by the Borrower proves to be false or misleading.

7.3 Bankruptcy or Insolvency. Borrower or its assignee files for bankruptcy, makes an assignment for the benefit of creditors, or becomes insolvent.

7.4 Unauthorized Transfer. Sale, assignment, or transfer of the hotel, Property or loan without required City approval.

7.5 Transient Occupancy Tax. Failure to remit Transient Occupancy Tax as required by law.

7.6 Material Breach. Material breach of this Agreement.

ARTICLE 8 – REMEDIES
Upon an Event of Default, City may exercise all remedies available at law or equity including acceleration, foreclosure, recovery of attorneys’ fees, and specific performance.

ARTICLE 9 – GENERAL PROVISIONS

9.1 Notices. All written notices and demands of any kind which either party may be required or may desire to serve upon the other party in connection with this Agreement may be served (as an alternative to personal service) by registered or certified mail, overnight courier service or facsimile (followed promptly by hard copy) at the addresses set forth below:

As to City:

As to Hotel:

City of Scotts Valley One
Civic Center Drive Scotts
Valley, CA95066
Attn: City Manager
Telephone:(831) 440-5600
Facsimile:(831) 438-2793

Any such notice or demand so served by registered or certified mail or overnight courier shallbe sentwithpostage or charges thereon fully prepaid and addressed to the party to be served at the addresses set forth above.

9.2 Validity. If any of the provisions of this Agreement or the application thereof to any persons or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Agreement by the application of such provision or provisions to persons or circumstances other than those as to whom or which it is held invalid or unenforceable shall not be affected thereby, and every provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

9.3 Compliance with Laws. Hotel warrants to CITY that it shall comply with all local, state and federal laws applicable to the construction and operation of the hotel and compliance with the terms of this agreement.

9.4 Attorneys' Fees. In the event of any litigation between the parties hereto to enforce any of the provisions of this Agreement or any right of either party hereto, the unsuccessful party to such litigation agrees to pay to the successful party all costs and expenses, including reasonable attorneys' fees, whether or not incurred in trial or on appeal, incurred therein by the successful party, all of which may be included in and as a part ofthe judgment rendered in such litigation. Any indemnity provisions herein shall include indemnification for reasonable attorneys' fees and costs, whether or not suit be brought and including fees and costs on appeal.

9.5 Time of Essence. Time shall be ofthe essence hereof.

9.6 Governing Law. This Agreement shall be governed by the laws of California and the parties hereto agree that any litigation between the parties hereto relating to this Agreement shall take place (unless otherwise required by law)in a courtlocated in Santa Cruz County, State of California. Each party waives its right to jurisdiction or venue in any other location.

9.7 Successors and Assigns. This Agreement shall be binding on and shall inure to the benefit of the City and Hotel, their respective heirs, successors (by merger, consolidation or otherwise), assigns, devisees, administrators and representatives, except as provided in Article 6 above.

9.8 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which will be deemed one instrument.

9.9 Amendment. This Agreement may be amended, modified or changed by the parties, provided that said Agreement,
modification or change is in writing and approved by the authorized representative of the parties.

9.10 Entire Agreement. This Agreement contains the entire understanding between the parties with respect to the subject matter herein. There are no representations, agreements or understandings, whether oral or written, between or among the parties relating to the subject matter of this Agreement which are not fully expressed herein. The drafting and negotiation of this Agreement have been participated in by each ofthe parties and/or their counsel, and for allpurposes this Agreement shall be deemed to have been drafted jointly by all parties.

9.11 Waiver. Waiver of a breach or default under this
Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this agreement.

9.12 Severability. If any term or portion of this Agreement shall be held by a court of competent jurisdiction to be invalid, illegal, or otherwise unenforceable, the remaining provisions of this Agreement shall continue in full force and effect.

9.13 No Third-Party Beneficiaries. No third party shall have rights under this agreement unless expressly stated.

9.14 Prevailing Party. The prevailing party in any action arising from this Agreement shall be entitled to attorneys’ fees and costs.

INWITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

BORROWER: CITY:

SCOTTS VALLEY HOTEL, LP CITY OF SCOTTS VALLEY
By: __________________________ By: ___________________________________ Name: ________________________ Name: ________________________________

Title: _________________________ Title: _________________________________ ATTEST:
________________________________________
Cathie Simonovich, City Clerk
APPROVED AS TO FORM:
________________________________________
Kirsten Powell, City Attorney

EXHIBIT B-1
Amended and Restated Deed of Trust- City Assistance Loan

Exhibit B-2
Amended and Restated Deed of Trust- DIF Loan

Input Value
Initial Balance $555,180.68
Initial Balance Date 2/7/2018
Simple Annual Interest Rate 3.25%
Amortization Start Date 9/1/2028
Days of Simple Interest 3859
Simple Interest Accrued $190,765.41
Balance at Amortization Start $745,946.09
Amortization Annual Interest Rate 3.2500%
Monthly Interest Rate 0.2708%
Number of Monthly Payments 120
Equal Monthly Payment $7,289.31
Summary Value
Simple Interest Period 2/7/2018 to 9/1/2028
Total Scheduled Payments $874,717.53
Total Amortization Interest $128,771.44
Total Interest Incl. Simple Interest $319,536.85
Total Principal Repaid $745,946.09
Loan Amortization Model
Exhibit A - DIF Loan Amortization

Pmt # Payment Date Beginning Balance Payment Interest Principal Ending Balance 1 9/1/2028 $745,946.09 $7,289.31 $2,020.27 $5,269.04 $740,677.04 2 10/1/2028 $740,677.04 $7,289.31 $2,006.00 $5,283.31 $735,393.73 3 11/1/2028 $735,393.73 $7,289.31 $1,991.69 $5,297.62 $730,096.11 4 12/1/2028 $730,096.11 $7,289.31 $1,977.34 $5,311.97 $724,784.14 5 1/1/2029 $724,784.14 $7,289.31 $1,962.96 $5,326.36 $719,457.78 6 2/1/2029 $719,457.78 $7,289.31 $1,948.53 $5,340.78 $714,117.00 7 3/1/2029 $714,117.00 $7,289.31 $1,934.07 $5,355.25 $708,761.76 8 4/1/2029 $708,761.76 $7,289.31 $1,919.56 $5,369.75 $703,392.01 9 5/1/2029 $703,392.01 $7,289.31 $1,905.02 $5,384.29 $698,007.72 10 6/1/2029 $698,007.72 $7,289.31 $1,890.44 $5,398.88 $692,608.84 11 7/1/2029 $692,608.84 $7,289.31 $1,875.82 $5,413.50 $687,195.34 12 8/1/2029 $687,195.34 $7,289.31 $1,861.15 $5,428.16 $681,767.18 13 9/1/2029 $681,767.18 $7,289.31 $1,846.45 $5,442.86 $676,324.32 14 10/1/2029 $676,324.32 $7,289.31 $1,831.71 $5,457.60 $670,866.72 15 11/1/2029 $670,866.72 $7,289.31 $1,816.93 $5,472.38 $665,394.34 16 12/1/2029 $665,394.34 $7,289.31 $1,802.11 $5,487.20 $659,907.14 17 1/1/2030 $659,907.14 $7,289.31 $1,787.25 $5,502.06 $654,405.07 18 2/1/2030 $654,405.07 $7,289.31 $1,772.35 $5,516.97 $648,888.11 19 3/1/2030 $648,888.11 $7,289.31 $1,757.41 $5,531.91 $643,356.20 20 4/1/2030 $643,356.20 $7,289.31 $1,742.42 $5,546.89 $637,809.31 21 5/1/2030 $637,809.31 $7,289.31 $1,727.40 $5,561.91 $632,247.40 22 6/1/2030 $632,247.40 $7,289.31 $1,712.34 $5,576.98 $626,670.42 23 7/1/2030 $626,670.42 $7,289.31 $1,697.23 $5,592.08 $621,078.34 24 8/1/2030 $621,078.34 $7,289.31 $1,682.09 $5,607.23 $615,471.12 25 9/1/2030 $615,471.12 $7,289.31 $1,666.90 $5,622.41 $609,848.71 26 10/1/2030 $609,848.71 $7,289.31 $1,651.67 $5,637.64 $604,211.07 27 11/1/2030 $604,211.07 $7,289.31 $1,636.40 $5,652.91 $598,558.16 28 12/1/2030 $598,558.16 $7,289.31 $1,621.10 $5,668.22 $592,889.94 29 1/1/2031 $592,889.94 $7,289.31 $1,605.74 $5,683.57 $587,206.37 30 2/1/2031 $587,206.37 $7,289.31 $1,590.35 $5,698.96 $581,507.41 31 3/1/2031 $581,507.41 $7,289.31 $1,574.92 $5,714.40 $575,793.01 32 4/1/2031 $575,793.01 $7,289.31 $1,559.44 $5,729.87 $570,063.14 33 5/1/2031 $570,063.14 $7,289.31 $1,543.92 $5,745.39 $564,317.75 34 6/1/2031 $564,317.75 $7,289.31 $1,528.36 $5,760.95 $558,556.80 35 7/1/2031 $558,556.80 $7,289.31 $1,512.76 $5,776.55 $552,780.24 36 8/1/2031 $552,780.24 $7,289.31 $1,497.11 $5,792.20 $546,988.04 37 9/1/2031 $546,988.04 $7,289.31 $1,481.43 $5,807.89 $541,180.15 38 10/1/2031 $541,180.15 $7,289.31 $1,465.70 $5,823.62 $535,356.54 39 11/1/2031 $535,356.54 $7,289.31 $1,449.92 $5,839.39 $529,517.15 40 12/1/2031 $529,517.15 $7,289.31 $1,434.11 $5,855.20 $523,661.95 41 1/1/2032 $523,661.95 $7,289.31 $1,418.25 $5,871.06 $517,790.88 42 2/1/2032 $517,790.88 $7,289.31 $1,402.35 $5,886.96 $511,903.92 43 3/1/2032 $511,903.92 $7,289.31 $1,386.41 $5,902.91 $506,001.02 44 4/1/2032 $506,001.02 $7,289.31 $1,370.42 $5,918.89 $500,082.12 45 5/1/2032 $500,082.12 $7,289.31 $1,354.39 $5,934.92 $494,147.20 46 6/1/2032 $494,147.20 $7,289.31 $1,338.32 $5,951.00 $488,196.20 47 7/1/2032 $488,196.20 $7,289.31 $1,322.20 $5,967.11 $482,229.09 48 8/1/2032 $482,229.09 $7,289.31 $1,306.04 $5,983.28 $476,245.81 49 9/1/2032 $476,245.81 $7,289.31 $1,289.83 $5,999.48 $470,246.33 50 10/1/2032 $470,246.33 $7,289.31 $1,273.58 $6,015.73 $464,230.60 51 11/1/2032 $464,230.60 $7,289.31 $1,257.29 $6,032.02 $458,198.58 52 12/1/2032 $458,198.58 $7,289.31 $1,240.95 $6,048.36 $452,150.22 53 1/1/2033 $452,150.22 $7,289.31 $1,224.57 $6,064.74 $446,085.48 54 2/1/2033 $446,085.48 $7,289.31 $1,208.15 $6,081.16 $440,004.32 55 3/1/2033 $440,004.32 $7,289.31 $1,191.68 $6,097.63 $433,906.68 56 4/1/2033 $433,906.68 $7,289.31 $1,175.16 $6,114.15 $427,792.54 57 5/1/2033 $427,792.54 $7,289.31 $1,158.60 $6,130.71 $421,661.83 58 6/1/2033 $421,661.83 $7,289.31 $1,142.00 $6,147.31 $415,514.52 59 7/1/2033 $415,514.52 $7,289.31 $1,125.35 $6,163.96 $409,350.55 60 8/1/2033 $409,350.55 $7,289.31 $1,108.66 $6,180.65 $403,169.90

61 9/1/2033 $403,169.90 $7,289.31 $1,091.92 $6,197.39 $396,972.51 62 10/1/2033 $396,972.51 $7,289.31 $1,075.13 $6,214.18 $390,758.33 63 11/1/2033 $390,758.33 $7,289.31 $1,058.30 $6,231.01 $384,527.32 64 12/1/2033 $384,527.32 $7,289.31 $1,041.43 $6,247.88 $378,279.43 65 1/1/2034 $378,279.43 $7,289.31 $1,024.51 $6,264.81 $372,014.63 66 2/1/2034 $372,014.63 $7,289.31 $1,007.54 $6,281.77 $365,732.85 67 3/1/2034 $365,732.85 $7,289.31 $990.53 $6,298.79 $359,434.07 68 4/1/2034 $359,434.07 $7,289.31 $973.47 $6,315.85 $353,118.22 69 5/1/2034 $353,118.22 $7,289.31 $956.36 $6,332.95 $346,785.27 70 6/1/2034 $346,785.27 $7,289.31 $939.21 $6,350.10 $340,435.17 71 7/1/2034 $340,435.17 $7,289.31 $922.01 $6,367.30 $334,067.87 72 8/1/2034 $334,067.87 $7,289.31 $904.77 $6,384.55 $327,683.32 73 9/1/2034 $327,683.32 $7,289.31 $887.48 $6,401.84 $321,281.49 74 10/1/2034 $321,281.49 $7,289.31 $870.14 $6,419.18 $314,862.31 75 11/1/2034 $314,862.31 $7,289.31 $852.75 $6,436.56 $308,425.75 76 12/1/2034 $308,425.75 $7,289.31 $835.32 $6,453.99 $301,971.76 77 1/1/2035 $301,971.76 $7,289.31 $817.84 $6,471.47 $295,500.28 78 2/1/2035 $295,500.28 $7,289.31 $800.31 $6,489.00 $289,011.28 79 3/1/2035 $289,011.28 $7,289.31 $782.74 $6,506.57 $282,504.71 80 4/1/2035 $282,504.71 $7,289.31 $765.12 $6,524.20 $275,980.51 81 5/1/2035 $275,980.51 $7,289.31 $747.45 $6,541.87 $269,438.65 82 6/1/2035 $269,438.65 $7,289.31 $729.73 $6,559.58 $262,879.07 83 7/1/2035 $262,879.07 $7,289.31 $711.96 $6,577.35 $256,301.72 84 8/1/2035 $256,301.72 $7,289.31 $694.15 $6,595.16 $249,706.56 85 9/1/2035 $249,706.56 $7,289.31 $676.29 $6,613.02 $243,093.53 86 10/1/2035 $243,093.53 $7,289.31 $658.38 $6,630.93 $236,462.60 87 11/1/2035 $236,462.60 $7,289.31 $640.42 $6,648.89 $229,813.70 88 12/1/2035 $229,813.70 $7,289.31 $622.41 $6,666.90 $223,146.80 89 1/1/2036 $223,146.80 $7,289.31 $604.36 $6,684.96 $216,461.85 90 2/1/2036 $216,461.85 $7,289.31 $586.25 $6,703.06 $209,758.78 91 3/1/2036 $209,758.78 $7,289.31 $568.10 $6,721.22 $203,037.57 92 4/1/2036 $203,037.57 $7,289.31 $549.89 $6,739.42 $196,298.15 93 5/1/2036 $196,298.15 $7,289.31 $531.64 $6,757.67 $189,540.48 94 6/1/2036 $189,540.48 $7,289.31 $513.34 $6,775.97 $182,764.50 95 7/1/2036 $182,764.50 $7,289.31 $494.99 $6,794.33 $175,970.18 96 8/1/2036 $175,970.18 $7,289.31 $476.59 $6,812.73 $169,157.45 97 9/1/2036 $169,157.45 $7,289.31 $458.13 $6,831.18 $162,326.27 98 10/1/2036 $162,326.27 $7,289.31 $439.63 $6,849.68 $155,476.59 99 11/1/2036 $155,476.59 $7,289.31 $421.08 $6,868.23 $148,608.36 100 12/1/2036 $148,608.36 $7,289.31 $402.48 $6,886.83 $141,721.53 101 1/1/2037 $141,721.53 $7,289.31 $383.83 $6,905.48 $134,816.05 102 2/1/2037 $134,816.05 $7,289.31 $365.13 $6,924.19 $127,891.86 103 3/1/2037 $127,891.86 $7,289.31 $346.37 $6,942.94 $120,948.92 104 4/1/2037 $120,948.92 $7,289.31 $327.57 $6,961.74 $113,987.18 105 5/1/2037 $113,987.18 $7,289.31 $308.72 $6,980.60 $107,006.58 106 6/1/2037 $107,006.58 $7,289.31 $289.81 $6,999.50 $100,007.08 107 7/1/2037 $100,007.08 $7,289.31 $270.85 $7,018.46 $92,988.62 108 8/1/2037 $92,988.62 $7,289.31 $251.84 $7,037.47 $85,951.15 109 9/1/2037 $85,951.15 $7,289.31 $232.78 $7,056.53 $78,894.62 110 10/1/2037 $78,894.62 $7,289.31 $213.67 $7,075.64 $71,818.98 111 11/1/2037 $71,818.98 $7,289.31 $194.51 $7,094.80 $64,724.18 112 12/1/2037 $64,724.18 $7,289.31 $175.29 $7,114.02 $57,610.16 113 1/1/2038 $57,610.16 $7,289.31 $156.03 $7,133.29 $50,476.88 114 2/1/2038 $50,476.88 $7,289.31 $136.71 $7,152.60 $43,324.27 115 3/1/2038 $43,324.27 $7,289.31 $117.34 $7,171.98 $36,152.30 116 4/1/2038 $36,152.30 $7,289.31 $97.91 $7,191.40 $28,960.90 117 5/1/2038 $28,960.90 $7,289.31 $78.44 $7,210.88 $21,750.02 118 6/1/2038 $21,750.02 $7,289.31 $58.91 $7,230.41 $14,519.61 119 7/1/2038 $14,519.61 $7,289.31 $39.32 $7,249.99 $7,269.62 120 8/1/2038 $7,269.62 $7,289.31 $19.69 $7,269.62 $0.00

RESOLUTION NO. 2098

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY APPROVING

AN AMENDED AND RESTATED LOAN, REPAYMENT, AND SECURITY AGREEMENT WITH SCOTTS VALLEY HOTEL, LP; APPROVING RELATED AMENDED AND RESTATED DEEDS OF TRUST; AND AUTHORIZING THE CITY MANAGER TO EXECUTE IMPLEMENTING

DOCUMENTS
WHEREAS, the City of Scotts Valley ("City") previously approved financial assistance to support development of the Four Points by Marriott Hotel located at 5030 Scotts Valley Drive, Scotts Valley, California ("Hotel"); and
WHEREAS, pursuant to prior agreements, the City provided financial assistance totaling approximately $1,789,000 consisting of direct City assistance and transient occupancy tax-related financing support ("City Assistance Loan"); and WHEREAS, the City also approved a Development Impact Fee Deferral Agreement allowing deferred payment of development impact fees in the principal amount of $555,180.68 ("DIF Loan"); and
WHEREAS, the obligations associated with the Hotel were subsequently assumed by Scotts Valley Hotel, LP pursuant to an Assignment, Assumption and Consent Agreement approved by the City; and
WHEREAS, the borrower has requested modifications to the repayment terms of the City Assistance Loan and DIF Loan to improve cash flow and align repayment obligations with anticipated hotel operating performance; and
WHEREAS, City staff reviewed the borrower's financial information and determined that certain modifications could be supported while preserving the City's ability to recover all amounts owed; and
WHEREAS, the proposed amendments do not forgive, waive, or reduce any outstanding principal or accrued interest owed to the City; and
WHEREAS, the proposed amendments include:

1. Continuing the City Assistance Loan principal obligation of $1,789,000 at 3.25% simple interest;

2. Modifying the transient occupancy tax repayment credit threshold to $350,000 annually, with amounts above that threshold applied toward reduction of City Assistance Loan principal;

3. Continuing the DIF Loan principal obligation of $555,180.68 at 3.25% simple interest;

4. Deferring commencement of DIF Loan repayment until September 1, 2028;

5. Amortizing the DIF Loan over a ten-year repayment period;

6. Allowing future assumption of the obligations by successor property owners subject to City approval; and

7. Replacing existing security instruments with amended and restated Deeds of Trust; and
WHEREAS, the City Council finds that approval of the proposed amendments serves the public interest by preserving the City's financial interests, improving the likelihood of full repayment, maintaining enforceable security for the obligations, and supporting continued operation of a significant transient occupancy tax-generating business within the City; and WHEREAS, the City Council further finds that this action is not a project under the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines Section 15378 because it involves administrative and financial arrangements that will not result in a direct or indirect physical change in the environment, or alternatively is exempt pursuant to CEQA Guidelines Section 15061(b)(3).

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Scotts Valley as follows:

SECTION 1. Recitals.

The foregoing recitals are true and correct and are incorporated herein by this reference.

SECTION 2. Approval of Agreement.

The City Council hereby approves the Amended and Restated Loan, Repayment, and Security Agreement between the City of Scotts Valley and Scotts Valley Hotel, LP, substantially in the form presented to the City Council.

SECTION 3. Approval of Security Documents.

The City Council hereby approves the Amended and Restated Deed of Trust securing the City Assistance Loan and the Amended and Restated Deed of Trust securing the DIF Loan, substantially in the forms presented to the City Council.

SECTION 4. Authorization to Execute Documents.

The City Manager is authorized and directed to execute the Amended and Restated Loan, Repayment, and Security Agreement, the related Deeds of Trust, assumption agreements, recordation documents, and such other documents as may be necessary to implement this Resolution, subject to approval as to form by the City Attorney.

SECTION 5. Non-Substantive Revisions.

The City Manager is authorized to approve and execute non-substantive revisions to the approved documents that do not materially alter the financial terms approved by the City Council.

SECTION 6. Recordation.

The City Manager, City Clerk, and other appropriate City officials are authorized to record such agreements, deeds of trust, notices, and related instruments as may be necessary to carry out the purposes of this Resolution.

SECTION 7. Effective Date.

This Resolution shall take effect immediately upon adoption.

PASSED AND ADOPTED by the City Council of the City of Scotts Valley at a regular meeting held on the 17th day of June 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

AGENDA ITEM 1.

DATE: 6/17/2026
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 6/17/2026
TO: Honorable Mayor and City Council
FROM: Rodolfo Onchi, Public Works Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Public Hearing for Pinewood Estates Landscape Maintenance Assessment District; Resolution No. 1213.40.2

SUMMARY OF ISSUE
On July 15, 1987, Resolution 1213 was adopted by City Council to form the referenced assessment district pursuant to the Landscape and Lighting Act of 1972. The District improvements, which generally consist of ornamental landscaping, irrigation equipment, signs, fences, and storm detention ponds, were dedicated to the City by the developer of the Pinewood Estates subdivision. These improvements were planted/constructed in the right-ofway of Lockewood Lane and in landscaping easements from the subdivision. The district participants are the 25 Pinewood Estates homeowners, who are being assessed for the cost of maintaining the improvements.

The District special fund is annually depleted and an Annual Engineer’s Report is filed, which includes an estimate of expenses to be paid by the district, a description of the work to be performed or improvements to be made, and benefit assessment, outlining the proposed budget for the cost of maintaining, repairing, and operating any public improvements.

In accordance with the Landscaping and Lighting Act of 1972 for the 2026-2027 fiscal year, the Council adopted Resolution No. 1213.40 directing the City Engineer to prepare the Engineer’s report on May 20, 2026, and the Council adopted Resolution No. 1213.40.1 approving the City’s Engineer's Report, declaring the intent to levy and collect assessments and setting a time and place for hearing protests to the imposition of the assessments on June 3, 2026.

As required, all 25 owners were notified of the June 17, 2026, public hearing via mail. The assessor’s roll is used to obtain the current name and address of each property owner to be notified of the proceedings. This public hearing is being held to receive additional testimony from property owners, overrule any protests received, if appropriate, and adopt Resolution No. 1213.40.2.

FISCAL IMPACT

Costs associated with the maintenance and repair of the assessed area are funded through an assessment district. The established assessment amount is $240 per unit/parcel, generating approximately $6,000.00 annualy.

STAFF RECOMMENDATION
It is recommended that the City Council overrule any protests received and approve Resolution No. 1213.40.2 ordering and authorizing the levy and collection of assessments therein pursuant to the Landscaping and Lighting Act of 1972 for the Pinewood Estates Landscaping Maintenance District.

TABLE OF CONTENTS

1. Resolution No.1213.40.2 Pinewood Assessment Public Hearing

2. 2026-27 Pinewood Annual Engineer's Report - 05.07.26

RESOLUTION NO. 1213.40.2

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY

ORDERING AND AUTHORIZING THE LEVY AND COLLECTION OF ASSESSMENTS THEREIN PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972

PINEWOOD ESTATES LANDSCAPE MAINTENANCE DISTRICT
WHEREAS, pursuant to Resolution No. 1192, a Resolution of Public Interest and Convenience to Form a Landscaping Maintenance District and Ordering Preparation of an Engineer's Report was adopted on the 4th day of February, 1987, by the City Council pursuant to the Landscaping and Lighting Act of 1972 (the “Act”), as amended, and the Engineer of Work of the City filed with the City Clerk the written report called for under the Act and by Resolution No. 1192, which report was presented by said Engineer of Work to this Council and this Council approved and confirmed the report by Resolution No. 1213, adopted July 15, 1987, and ordered that the same stand as the report for the purpose of all subsequent proceedings pursuant to said Resolution No. 1213; and WHEREAS, on May 20, 2026, in accordance with the Act for the 2026-2027 Fiscal Year, the Council adopted Resolution No. 1213.40 directing the City Engineer to prepare the Engineer’s report; and
WHEREAS, on June 3, 2026, the Council adopted Resolution No. 1213.40.1 approving the City’s Engineer's Report (the “Report”), declaring the intent to levy and collect assessments and setting a time and place for hearing protests to the imposition of the assessments; and
WHEREAS, June 17, 2026, in the regular meeting place of said Council, Council Chambers, One Civic Center Drive, Scotts Valley, California, was fixed as the time and place of a public hearing to act upon the Report and Resolution No. 1213.40.2; and WHEREAS, the City Clerk gave notice of said hearing by publication in the local newspaper published and circulated in said City, and by mailing or causing to be mailed the notice of the adoption of said Resolution and of the filing of said report, postage prepaid, at least ten days before the date set for hearings of said protests, to all persons owning real property to be assessed, whose names and addresses appear on the last equalized assessment roll for County taxes prior thereto or as known to the City Clerk, which notice contained a statement of the time, place and purpose of the hearing and a statement of the total estimated cost of said proposed maintenance and improvements, the amount as shown by said report to be assessed against the particular parcel covered by the notice, together with a statement that any person interested may file a protest in writing as provided in said Act; and

WHEREAS, any written protests and other written communications were read by the Council and are on file with the Clerk and all persons desiring to be heard were fully heard.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED, as follows:

1. That the owners of one-half (1/2) or more of the area to be assessed for the cost of the project did not, at or prior to the time fixed for said hearings, file written protests against the proposed maintenance and improvements as a whole, or against the district or the extent thereof to be assessed for the costs and expenses of said maintenance and improvements as a whole, or as to the Engineer's estimate of said costs and expenses, or against the maps and descriptions, or against the diagram or assessment to pay for the costs and expenses thereof.

2. That the properties in the district benefited by said maintenance and improvements are to be assessed to pay the costs and expenses thereof, and the exterior boundaries thereof are more particularly described in said Resolution Nos. 1192 and 1213 and made a part hereof by reference thereto. That all public streets and highways within said assessment district in use in the performance of a public function as such shall be omitted from said district and from the levy and collection of the special taxes to be hereafter levied and collected to cover the costs and expenses of said maintenance and improvements.

3. That the Engineer's estimate of the itemized and total costs and expenses in connection therewith, contained in the Report, be, and it is hereby, finally adopted and approved as the Engineer's total and detailed estimate of the costs and expenses of said maintenance of improvements.

4. That the public interest and convenience require and the Council does hereby order the maintenance of improvements to be made as described in and in accordance with said Resolution Nos. 1192 and 1213 on file in the office of the City Clerk, reference to which is hereby made for a more particular description of said maintenance of improvements.

5. That the diagram showing the assessment district referred to and described in said Resolution No. 1192 and 1213, is hereby finally approved and confirmed as the diagram of the properties to be assessed to pay the costs and expenses of said maintenance of improvements.

6. That the assessment of the total amount of the costs and expenses of the proposed maintenance of improvements upon the properties in the district in proportion to the estimated benefits to be received by said subdivisions, respectively from said maintenance of improvements, and of the expenses incidental thereto, contained in the Report, be, and the same is hereby, finally approved and confirmed as the assessment to pay the costs and expenses of said maintenance of improvements.

7. That the Report be, and the same is hereby, finally adopted and approved as a whole.

8. That the City Clerk shall cause to be delivered to the Santa Cruz County Assessor’s office said assessment as confirmed by the City Council with his/her certificate of such confirmation thereto attached and of the date thereof; and that office shall record said diagram and assessment in his/her office in a suitable book to be kept for that purpose, and append thereto his/her certificate for the date of such recording, and such recordation shall be and constitute the assessment roll herein.

9. Proceedings shall be taken by the Council pursuant to the Act for any fiscal year during which an assessment is to be levied and collected within the district.

10. The City Clerk be, and is hereby, authorized and directed to file a certified copy of this resolution with the County Auditor of Santa Cruz County.

The above and foregoing resolution was duly and regularly adopted by the City Council of the City of Scotts Valley, California, at a regular meeting held on the 17th day of June 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Approved:

Donna Lind, Mayor
Attest:

Cathie Simonovich, City Clerk

ANNUAL ENGINEER'S REPORT
Fiscal Year 2026-2027

PINEWOOD ESTATES

LANDSCAPING MAINTENANCE DISTRICT
Tract No. 1121
City of Scotts Valley
Santa Cruz County, California
Donna Lind
Mayor
Steve Clark Krista Jett
Vice Mayor Council Member
Derek Timm Greg Wimp
Council Member Council Member
Mali LaGoe
City Manager
Rodolfo Onchi, RCE 72157
Public Works Director / City Engineer

ASSESSMENT
Fiscal Year 2026-2027
WHEREAS, on February 4, 1987, the City Council of the City of Scotts Valley, California, pursuant to the provisions of the Landscaping and Lighting Act of 1972, adopted Resolution No. 1192, determining to undertake proceedings for the establishment of an assessment district to be known as the "Pinewood Estates Landscaping Maintenance District", more particularly therein described; and WHEREAS, on July 15, 1987, the City Council of the City of Scotts Valley, California adopted Resolution No. 1213 primarily approving and confirming the written report by the Engineers of Work called for under said Act, and ordered that the same stand as the report for the purpose of all subsequent proceedings had pursuant to said Resolution No. 1213; and
WHEREAS, on August 17, 1988, the City Council of said City of Scotts Valley adopted Resolution No. 1213.1 setting a time and place of hearing protest on levy of assessments pursuant to said Act; and
WHEREAS, on September 7, 1988, the City Council of said City of Scotts Valley adopted Resolution No. 1213.2 ordering and authorizing the levy and collection of assessments therein pursuant to the said Act; and
WHEREAS, the proceedings under said Act require an annual engineers report to be prepared and filed in the same way as the report for the formation of the district for each year in which an assessment is to be levied.

NOW, THEREFORE, I, Rodolfo Onchi, RCE 72157, Public Works Director/City Engineer of said City of Scotts Valley, hereby make the following assessment to cover the portion of the estimated cost of the maintenance and servicing of the proposed improvements, including the costs and expenses incidental thereto, to be paid by the assessment district.

The amount to be paid for said maintenance and servicing of the proposed improvements, including the costs and expenses incidental thereto, to be paid by the assessment district for the fiscal year 2026-2027 is as follows:

Engineer's Estimate: $ 6,000.00
Amount to be Assessed: $ 6,000.00
And I do hereby assess and apportion said portion of said total amount of the costs and expenses of said maintenance and servicing of the proposed improvements, including the costs and expenses incidental thereto, upon the several lots, pieces, or parcels or portions of lots of land liable therefore and benefitted thereby, and hereinafter numbered

to correspond with the numbers upon the diagram, upon each, severally and respectively, in proportion to the benefits to be received by such lands respectively, from the maintenance hereto attached and by reference made a part hereof.

As required by said Act, a diagram is recorded in official records of the County of Santa Cruz showing the assessment district and also the boundaries and dimensions of the respective lots or parcels of land within said assessment district as the same existed at the passage of said Resolution No. 1192.

Said assessment is made upon the several lots or parcels of land within said assessment district in proportion to the estimated benefits to be received by said lots or parcels respectively, from the maintenance and servicing of the improvements. The diagram and assessment numbers appearing herein are the diagram numbers appearing on said diagram, to which reference is hereby made for a more particular description of said property.

I hereby place opposite the number of each lot or parcel of land assessed, the amount assessed thereon and the number of the assessment. Each lot or parcel of land is described in the assessment list by reference to its parcel number as shown on the Assessor's Maps of the County of Santa Cruz for the fiscal year 2026-2027 to the right of the parcel numbers and includes all of such parcels.

Dated: _____5/27/2026________________
_________________________________
Rodolfo Onchi, RCE 72157,
Public Works Director / City Engineer

DESCRIPTION OF WORK

1. WEEDING - Mechanical and chemical methods of maintaining weeds, including hard and soft-scaped areas.

2. PRUNING - Prune all shrubs and trees up to 12” in diameter as required, thinning and shaping as necessary to present a maintained appearance.

3. FERTILIZER - Fertilize trees, shrubs, and ground cover twice a year with a complete slow-release fertilizer.

4. INSECT & PEST CONTROL - Control of minor insect and pest conditions as needed to support overall landscape health. This excludes treatment of major insect or pest infestations, including but not limited to grubs, gophers, moles, voles, and ground squirrels.

5. MOW AND EDGE - Mow and edge landscape up to once per week during growing season and as needed during winter months to maintain a manicured appearance.

ESTIMATE OF COSTS

ANNUAL MAINTENANCE COSTS
Fiscal Year 2026-2027
Engineer's Estimate (City Engineer)
Maintenance Expenses
Maintenance and servicing $ 5,400.00
Subtotal $ 5,400.00
Incidental Expenses
City administration of Contracted Work (10% Overhead) $ 600.00 Subtotal $ 600.00
Total Estimated Cost $ 6,000.00
Net Amount to be Assessed $6,000.00
For Fiscal Year 2026-2027, the budget reflects only the assessment revenue collected from property owners within the Pinewood Assessment District. While the need for ongoing maintenance and improvements exceeds the amount generated by the annual assessments, expenditures will be limited to available revenues. As such, maintenance activities will be prioritized and performed based on the funds collected, and no additional expenditures beyond the budgeted amount are anticipated.

RULES OF SPREADING ASSESSMENTS

1. District is to be assessed for all costs associated with the maintenance and servicing of the landscaping, hardscaping and appurtenant improvements within the boundaries of the district.

2. Total costs shall be apportioned to all parcels within the district boundaries in accordance with the benefit derived from the landscaping improvements.

3. Because the landscaping enhances an area serving as a drainage detention system for all parcels within the boundaries of the district, the benefit derived has been determined to be equal for all parcels.

Certificates
I, Cathie Simonovich, City Clerk of the City of Scotts Valley, hereby certify that the foregoing assessment, in the amount set forth, was filed with me on ____________________.
________________________
Cathie Simonovich, City Clerk
I, Rodolfo Onchi, Public Works Director / City Engineer for the City of Scotts Valley, do hereby certify that the amounts set forth have been re-computed in accordance with the order of the City Council of said City of Scotts Valley, as expressed by Resolution No. 1213.40, duly adopted by said City Council on May 20, 2026. ________________________
Rodolfo Onchi, RCE 72157,
Public Works Director / City Engineer
I, Cathie Simonovich, City Clerk of the City of Scotts Valley, hereby certify that the foregoing assessment, in the amount set forth was approved and confirmed by the City Council of the City of Scotts Valley on ____________________. ________________________
Cathie Simonovich, City Clerk
The Assessment was filed in the office of the County Auditor of the County of Santa Cruz, California, on __________________.
________________________
Cathie Simonovich, City Clerk

I HEREBY CERTIFY that the enclosed Engineer’s Report and Assessment was recorded in my office on _________________.

Public Works Director / City Engineer
Scotts Valley, Santa Cruz County, California
By:_______________________________
Rodolfo Onchi, RCE 72157

City of Scotts Valley

PINEWOOD ESTATES LANDSCAPING MAINTENANCE DISTRICT

ASSESSMENT ROLL
2026-2027
Assessment Assessor's Assessment
Number Parcel No. Amount
____________________________________________________________________________ 1 021-172-01 BIAN ZHIXI $240
2 021-172-02 DANIELS HEATHER E & DANIEL C $240
3 021-172-03 MARTIN GEOFFREY & SUSAN H/W JT $240
4 021-172-04 KELLER TERRY A & JULIE TRUSTEES $240
5 021-172-05 EDWARDS ANDREA U/W $240
6 021-172-06

WOLF MARSHALL E & KRISTIA BURGESS
TRUSTEES $240
7 021-172-07 HALL EUGENE J & JENNIFER M $240
8 021-172-08

O CONNOR MICHAEL CHARLES & SARAH
WRIGHT H/W CP R $240
9 021-172-09 ROBINSON CARLOS E H/W JT ETAL $240
10 021-172-10 ROBERTS TRACY LEE $240
11 021-172-11 DUNN JOHN & JANINE H/W CP RS $240
12 021-172-12 GONG QI H/W CP RS ETAL $240
13 021-172-13 MC CONNELL MELVIN M & MIRIAM C H/W JT $240 14 021-172-14 MCMULLEN AMY DEANNE & ROBERT WILLIAM $240 15 021-301-01 LINN JOEL M & KARINA H/W CP RS $240
16 021-301-02 SION VINICIO & KRISTY CO-TRUSTEES $240
17 021-301-03 DAVIDSON MARK S & EVE M $240
18 021-301-04 KEITH SETH $240
19 021-301-05 LEMMON CYNTHIA M TRUSTEE $240
20 021-301-07 SUGGS JOHN B & LINDA L TRUSTEES $240
21 021-301-08 NORDSTROM MARK JOHN TRUSTEE ETAL $240
22 021-301-09 SPIEGEL JAMES D TRUSTEES ETAL $240
23 021-301-10 MCELREA SIMON J S & KRISTIN L $240
24 021-301-11 COX CLINT R $240
25 021-301-12 ROSS BRANDON J & KATHY C $240
_____
TOTAL ASSESSMENTS: $ 6,000

AGENDA ITEM 2.

DATE: 6/17/2026
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 6/17/2026
TO: Honorable Mayor and City Council
FROM: Rodolfo Onchi, Public Works Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Public Hearing for Skypark Open Space Maintenance Assessment District No. 1; Resolution No. 1555.SP.038.2

SUMMARY OF ISSUE
In 1995, the City Council formed the Skypark Open Space Maintenance Assessment District No. 1 and subsequently authorized the levy and collection of an assessment to maintain the open space district. The revenue collected to maintain the district includes Linear Trail, two greenbelt areas, and a self-insurance fund in the event of a slope failure. The assessment district is formed pursuant to the Landscaping and Lighting Act of 1972 and must be renewed annually.

The District special fund is annually depleted and an Annual Engineer’s Report is filed, which includes an estimate of expenses to be paid by the district, a description of the work to be performed or improvements to be made, and benefit assessment, outlining the proposed budget for the cost of maintaining, repairing, and operating any public improvements.

In accordance with the Landscaping and Lighting Act of 1972 for the 2026-2027 fiscal year, the Council adopted Resolution No. 1555.SP.038 directing the City Engineer to prepare the Engineer’s report on May 20, 2026, and the Council adopted Resolution No. 1555.SP.038.1 on June 3, 2026, approving the City’s Engineer's Report, declaring the intent to levy and collect assessments and setting a time and place for hearing protests to the imposition of the assessments.

As required, all 190 owners were notified of the June 17, 2026, public hearing via mail. The assessor’s roll is used to obtain the current name and address of each property owner to be notified of the proceedings. This public hearing is being held to receive additional testimony from property owners, overrule any protests received, if appropriate, and adopt Resolution No. 1555-SP-038.2.

FISCAL IMPACT
Costs associated with maintaining, repairing, and operating the assessment district are funded

through an assessment district. The established assessment amount is $219.74 per unit/parcel which generates an estimated $41,750.60 annually.

STAFF RECOMMENDATION
It is recommended that the City Council overrule any protests received and approve Resolution No. 1555.SP.038.2 ordering and authorizing the levy and collection of assessments therein pursuant to the Landscaping and Lighting Act of 1972 for the Skypark Open Space Maintenance District.

TABLE OF CONTENTS

1. Resolution No. 1555-SP-38.2 Skypark Assessment

2. 2026-27 Skypark Open Space Engineer Report_FINAL

RESOLUTION NO. 1555-SP-038.2

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY

ORDERING AND AUTHORIZING THE LEVY AND COLLECTION OF ASSESSMENTS THEREIN PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972

SKYPARK OPEN SPACE MAINTENANCE DISTRICT
WHEREAS, pursuant to Resolution No. 1555-SP-07, ordering formation of territory into an Open Space Maintenance Assessment District and authorizing the levy and collection of assessments, was adopted on the 6th day of December 1995 by the City Council pursuant to the Landscaping and Lighting Act of 1972 (the “Act”), as amended, and the Engineer of Work of the City filed with the City Clerk the written report called for under the Act and by Resolution No. 1555-SP-07, which report was presented by said Engineer of Work to this Council and this Council approved and confirmed the report by Resolution No. 1555-SP-03, adopted October 18, 1995, and ordered that the same stand as the report for the purpose of all subsequent proceedings pursuant to said Resolution No. 1555-SP-03; and
WHEREAS, on May 20, 2026, in accordance with the Act for the 2026-2027 Fiscal Year, the Council adopted Resolution No. 1555-SP-038 directing the City Engineer to prepare the Engineer’s report; and
WHEREAS, on June 3, 2026, the Council adopted Resolution No. 1555-SP-038.1 approving the City Engineer's Report (the “Report”), declaring the intent to levy and collect assessments and setting a time and place for hearing protests to the imposition of the assessments; and
WHEREAS, June 17, 2026, in the regular meeting place of the Council, Council Chambers, One Civic Center Drive, Scotts Valley, California, was fixed as the time and place of a public hearing to act upon the Report and Resolution No. 1555-SP-038.2; and WHEREAS, the City Clerk gave notice of said hearing by publication in the local newspaper published and circulated in said City, and by mailing or causing to be mailed the notice of the adoption of said Resolution and of the filing of said report, postage prepaid, at least ten days before the date set for hearings of said protests, to all persons owning real property to be assessed, whose names and addresses appear on the last equalized assessment roll for County taxes prior thereto or as known to the City Clerk, which notice contained a statement of the time, place and purpose of the hearings and a statement of the total estimated cost of said proposed maintenance and improvements, the amount as shown by said report to be assessed against the particular parcel covered by the notice, together with a statement that any person interested may file a protest in writing as provided in said Act; and