Watsonville City Council
March 22, 2022

Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022

31. Breach.

After service of ten (10) days written notice thereof by Landlord on Tenant any one of the following shall constitute a breach of this Lease by Tenant (a) The appointment a general assignment by Tenant for the benefit of creditors, or of a Receiver to take possession of all or substantially all of the assets of Tenant, or (b) Period of twenty (20) days, or
(c) A default in the performance of any other covenant or condition of this Lease on the part of Tenant to be performed for a period of twenty (20) days

32. Insurance.
(a) Tenant, at Tenant's sole expense, shall secure and maintain in force such policies of insurance as will protect it from claims for damages or injury resulting from bodily injury, including death, and for the loss or damage to property of others which may arise from operations of this Lease. Such insurance shall contain statements that:
(i) these policies shall also apply to Landlord, as an Additional Named Insured.
(ii) the insurance afforded by these policies applies severally as to each insured, except that the inclusion of more than one insured shall not operate to increase the limit of the company's liability, and the inclusion hereunder of any person or organization as an insured shall not affect any right which such person or organization would have as a claimant if not so included.
(iii) the insurance shall be primary insurance over any other insurance carried by Landlord, which other insurance shall be considered excess only. (iv) the above policies specifically include coverage indemnifying Landlord as set forth in this Lease.
(v) the policies may not be canceled, nor the coverage reduced until thirty (30 days after a written notice of such cancellation or reduction in coverage is delivered to Landlord at the address contained herein.
(vi) the insurance companies named herein waive any all rights of subrogation against Landlord.
(b) Such liability insurance shall be written with limits of at least One Million Dollars ($1,000,000.00), combined single limits, and shall be written by companies acceptable to Landlord. The limit of liability insurance coverage shall be adjusted commensurate with inflation and other liability factors upon adoption of resolution of the City Council of City. Certificates of Insurance evidencing the

Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022

above obligations shall be delivered to Landlord on prior commencement of operations covered by this agreement.
(c) Landlord, at Tenant's cost, shall cooperate fully with Tenant to maximize any recovery following an insured casualty. All policies of fire and extended coverage or other casualty insurance required by subparagraphs (e) and (g) below shall provide that proceeds there under shall be paid to Landlord and Tenant as their interests may appear.
(d) All policies required to be maintained by Tenant pursuant to the terms of this Lease shall be issued by companies authorized to do business in the State of California with a financial rating of at least "A" in the most recent edition of Best Insurance Reports. Tenant shall pay premiums therefore and shall deliver annually to City Certificates of Insurance that such policies are in effect. If Tenant fails or refuses to procure or maintain the insurance coverage required hereunder, or fails or refuses to furnish Landlord with proof that coverage has been procured and is in full force and paid for, Landlord shall have the right, at Landlord’s election and without notice to Tenant, but without any obligation to do so, to procure and maintain such coverage. Tenant shall reimburse Landlord on demand for any premiums Landlord so pays in connection with such procurement. (e) Fire Insurance: During the Lease Term, Tenant, at Tenant's sole expense, shall insure for fire and extended coverage risks the Premises, personal property, improvements, and alterations in, on, or about the leased Premises. Such insurance shall be in an amount not less than eighty percent (80%) of insurable, full replacement cost of such buildings and improvements, and shall include vandalism and malicious mischief endorsements. Said fire insurance policies shall contain loss payable endorsements in favor of the parties as their respective interests may appear hereunder. The City of Watsonville shall be named as additional insured in such policy or policies.
(f) Fire or Casualty: Destruction of Tenant Owned Building. In the event of extensive damage (greater than fifty percent (50%)) to or destruction of buildings or other improvements on the Leased Premises owned by Tenant as provided in Section 6 of this Lease ("Tenant Improvements"), Tenant shall determine whether to repair or replace the Tenant Improvements. If it is determined to repair or replace the Tenant Improvements, the proceeds of any insurance policy paid on account of such damage or destruction shall be used to defer the cost of repairing or replacing the Tenant Improvements. Tenant shall complete all repairs within a reasonable time. If it is determined not to repair or replace the Tenant Improvements, Tenant may terminate this Lease upon written notice to Landlord within thirty (30) days of such damage or destruction. If Tenant terminates this Lease pursuant hereto, after deducting any proceeds payable to Tenant's lender pursuant to the following paragraph, the remaining proceeds of any insurance policy paid on account of such damage or destruction shall be distributed to Landlord and Tenant pursuant to the following formula: Landlord’s share shall be the product of the amount of the remaining proceeds multiplied by a fraction, the numerator which is the number of months

Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022

since the commencement date of this Lease until the date of the casualty causing such damage or destruction, and the denominator of which is four hundred and twenty (420). Tenant's share shall be the excess of the remaining proceeds after subtracting the Landlord’s share. In the event of termination of the Lease pursuant to this Section 33 (e) (l), Tenant shall remove the Tenant Improvements and, restore the Landlord owned building to its prior condition at Tenant's sole cost and expense prior to the date of termination of the Lease. (i) All fire and extended coverage insurance policies insuring the Tenant Improvements may have a loss payable clause in favor of any lender of Tenant, including, but not limited to, any mortgagee of Tenant, as such lender's interest may appear.
(ii) Destruction of Landlord Owned Premises. If during the term of this Lease the Landlord owned Premises, as provided in Section 11 of this Lease, shall be damaged or destroyed to the extent of fifty percent (50%) of its valuation or at a repair cost estimated by the City Building Official to exceed the sum of Twenty Five Thousand Dollars ($25,000.00) by fire, the elements, or any other cause, then this Lease shall, at Landlord's option, cease and become null and void from the date of such damage, or destruction, and Tenant shall immediately surrender the entire Premises to Landlord and shall pay rent only to the time of such surrender.
(iii) If the Landlord owned Premises shall be damaged by fire, or other cause, so as to be capable of being repaired within a reasonable time, Landlord shall have the option to repair the same and during the time that the repairs are being made, Landlord shall remit to Tenant a just and fair portion of the rent according to the nature of the damage sustained and according to the extent that Tenant is deprived of the use of the Landlord owned Premises. Should the estimated time to repair damage exceed one hundred twenty (120) days, the Tenant may, at his option, terminate, this Lease. In such event both parties shall be released from further obligations under the terms of this Lease.
(g) Workers' Compensation: Tenant, at Tenant's sole expense, must obtain and maintain workers' compensation insurance covering all its employees, and said insurance must be kept in force during the entire term of this Lease. (h) Notice: Each party hereto shall give to the other prompt and timely notice of any claim made or suit instituted coming to its knowledge which in any way directly, contingently, or otherwise, affects or might affect either, and both shall have the right to participate in the defense of the same to the extent of its own interest. (i) Tenant, at Tenant's sole expense, must obtain and maintain Aircraft Airframe & Engine Repair & Maintenance SASO insurance as described in Attachment 2 to Section 1.5 of the Airport’s Minimum Commercial Standards for Aeronautical Activity at Watsonville Municipal Airport, dated as of July 1, 2017 and as such Standards may be amended from time to time.

Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022

33. Litigation Expenses.

If either party shall bring an action against the other by reason of the breach of any covenant, warranty or condition hereof, or otherwise arising out of this Lease, whether for declaratory or other relief, the prevailing party in such suit shall be entitled to its costs of suit and reasonable attorney fees, which shall be payable whether or not such action is prosecuted to judgment. "Prevailing Party" within the meaning of this paragraph shall include without limitation a party who brings an action against the other after the other's breach or default, if such action is dismissed upon the other's breach or default, if such action is dismissed upon the other's payment of the sums allegedly due or performance of the covenant's allegedly breached, or if the plaintiff obtains substantially the relief sought by it in the action.

34. Surrender of Premises.

Tenant agrees to surrender the Premises and any addition thereto at the termination of the tenancy herein created in the same condition as the Premises were in at the beginning of the tenancy or at the time of completion of the improvements as the case may be, reasonable use and wear thereof and damage by act of God or the elements excepted. The voluntary or other surrender of this Lease by Tenant or a mutual cancellation thereof shall not work a merger, and shall, at the option of Landlord, terminate all or any existing subleases or sub tenancies, or may, at the option of Landlord, operate an assignment to Landlord of any or all such sublease or sub tenancies.

35. Waiver.

Any waiver, expressed or implied, by either party of any breach by the other party of any agreement, term or condition of this Lease shall not be, or be construed to be, a waiver of any subsequent breach of a like or other agreement, term of condition hereof; and the acceptance of rent hereunder shall not be, or be construed to be, a waiver of any breach of any agreement, term or condition of this Lease, except as to the payment of rent so accepted. The rights and remedies of either party under this Lease shall be cumulative and in addition to any and all other rights and remedies which either party has or may have.

36. Quiet Enjoyment.

Landlord covenants and warrants that upon Tenant's paying the rent and observing and performing all of the terms, covenants, and conditions on Tenant's part to be observed and performed hereunder, Tenant shall and may peaceably and quietly enjoy the Premises hereby demised, subject nevertheless to the terms and conditions of this Lease.

37. Notices.

All notices, consents, waivers, or other communications which this Lease requires or permits either party to give to the other shall be in writing and shall be served personally or delivered by registered or certified mail, return receipt requested, made upon or addressed to the respective parties as follows:

Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022

To Landlord: To Tenant:

City Clerk Charles L. King dba C.K.'s Restoration
City of Watsonville 160 Aviation Way, Suite A
275 Main Street, Suite 400 Watsonville, CA. 95076
Watsonville, CA 95076
or such other address as may be contained in a notice from either party to the other given pursuant to this section. Notice of registered or certified mail shall be deemed to be given forty-eight (48) hours from the time of postmarking if mailed within the United States (excluding Alaska).

38. Recordation.

Neither Party, without the consent of the other, shall cause or permit the original nor any copy of this Lease to be recorded, filed, or published in any public place.

39. Tenant to Assume All Unknown Expenses.

Notwithstanding the existence of a provision therefore in this Lease, Tenant shall assume, pay, and be obligated for any and all costs and expenses toward the operation, protection, maintenance of the Premises, known or unknown, expressed or unexpressed, it being the intention of the parties for this to be a triple net lease to Landlord.

40. Right of Landlord to Enter for Inspection.

On a quarterly basis, Landlord shall have the right to enter upon the Premises at all reasonable times during the term of this Lease for the purpose of conducting premise inspections to ensure preventive maintenance issues be identified early. Landlord will report to Tenant, issues requiring attention and if appropriate, provide estimated cost for services to address maintenance needs.

41. Nondiscrimination
Tenant hereby covenants that Tenant in its use of the Premises and any and all structures, buildings and improvements located here on shall conduct the fixed base operation or any other activity hereafter authorized by the Landlord on the Premises on a non-exclusive and nondiscriminatory basis in all respects with regard to any person, firm or group of persons. Tenant shall not act in any manner prohibited by Part 15 of the Federal Aviation Regulations and further agrees to be nondiscriminatory also with respect to price or cost of services or goods and in every other fashion.

42. Enforcement of Nondiscrimination Clause.

Landlord shall have the right to take such action against the Tenant as the United States Government may direct or request to enforce the terms of the preceding paragraph on behalf of the United States Government or on behalf of any of its citizens or the Landlord itself.

Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022

43. Other Operations.

It is understood that the use authorized at the Watsonville Municipal Airport by this Lease is not given to Tenant exclusively but may be given to any other Tenant at the Airport at the sole discretion of the Landlord.

44. Condemnation.

If the whole or any substantial part of the Premises shall be taken by any paramount public authority under the power of eminent domain then the term of this Lease shall cease as to the part so taken from the date the possession of that part shall be taken for any public purpose, and from that day Tenant shall have the right either to cancel this Lease or to continue in the possession of the remainder of the Premises under the term herein provided, except that the square foot rental shall be reduced in proportion to the amount of the Premises taken. Damages awarded for such taking shall be apportioned between the Landlord and Tenant in a ratio relating to the number of years expired and remaining in the Lease Term between Landlord and Tenant respectively; provided, however, that Landlord shall not be entitled to any portion of the award made for loss of business installation or improvements belonging to Tenant.

45. Nondiscrimination- (FAA, MBE, DB Requirements).

The Tenant, for itself, its heirs, personal representatives, successors in interest, and assigns, as a part of the consideration for this Lease, does hereby covenant and agree as a covenant running with the land that in the event facilities are constructed, maintained, or otherwise operated on the Premises for a purpose for which a Department of Transportation (DOT) program or activity is extended or for another purpose involving the provision of similar services or benefits, the Tenant shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in FederallyAssisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as such Regulations may be amended.

The Tenant for itself, its personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby further covenant and agree as a covenant running with the land that: (a) no person on the grounds of race, color or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of facilities; (b) that in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subject to discrimination; (c) that the Tenant shall use the with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 2 1, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as such Regulations may be amended.

Tenant shall furnish its accommodations and/or services on a fair, equal, and not unjustly discriminatory basis to all users thereof and it shall charge fair, reasonable and not unjustly

Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022

discriminatory prices for each unit or service; PROVIDED, THAT the Tenant may be allowed to make reasonable and nondiscriminatory discounts, rebates or other similar type of price reductions to volume purchasers.

Tenant shall insert the provisions of this section in any lease agreement or contract by which Tenant grants a right of privilege to any person, firm or corporation to render accommodations and/or services to the public on the Premises.

46. Remedy for Discrimination.

In the event of breach of any of the nondiscrimination covenants identified in Paragraph 48, Landlord shall have the right to terminate this Lease and to reenter and repossess the Premises and the facilities thereon and hold the same as if this Lease had never been made or issued. The provision does not become effective until the procedures of 49 CFR Part 21 are followed and completed including expiration of appeal rights.

Non-compliance with paragraph 51 shall constitute a material breach thereof and in the event of such non-compliance Landlord shall have the right to terminate this Lease and the estate hereby created without liability therefore or at the election of the City or the United States either or both Governments shall have the right to judicially enforce paragraph 48.

47. Affirmative Action.

Tenant assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E, to insure that no personal shall be on the grounds of race, creed, color, national origin, or sex be excluded from participating in any employment activities covered in 14 CFR, Subpart E. Tenant assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by such subpart. Tenant assures that it will require that its covered by such subpart. Tenant assures that it will require that its covered sub organizations provide assurances to the Tenant that they similarly will undertake affirmative action programs and that they will require assurances from their sub-organizations, as provided by 14 CFR Part 152, subpart 2, to the same effect.

48. Subordination to Future FAA Agreements.

This Lease shall subordinate to the provisions and requirements of any existing or future agreement between the Landlord and the United States, relative to the development, operation, or maintenance of the Airport.

49. Notice to Federal Aviation Administration.

Tenant shall comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations in the event of future construction of a building planned for the Premises, or in the event of any planned modification or alteration of any present or future building or structure situated on the Premises.

Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022

50. Non-Exclusive Right.

It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act.

51. Required Accessibility Disclosure.

Landlord hereby advises Tenant that the Premises have not undergone an inspection by a certified access specialist, and except to the extent expressly set forth in this Lease, Landlord shall have no liability or responsibility to make any repairs or modifications to the Premises or the Project in order to comply with accessibility standards. The following disclosure is hereby made pursuant to applicable California law:

The Premises have not been inspected by a Certified Access Specialist (CASp). A CASp can inspect the premises and determine whether the premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the premises, the lessor may not prohibit the tenant from obtaining a CASp inspection of the premises for the occupancy or potential occupancy of tenant, if requested by the tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.

52. Terms.

All the provisions of this Lease shall be deemed and construed to be "covenants" as though the words imported such covenants were used in each separate paragraph hereof, except when expressed as conditions.

53. Governing Law.

This Lease shall be construed and enforced in accordance with the laws of the State of California.

54. Binding Effect.

This Lease and the covenants and agreements herein contained shall bind and inure to the benefit of the parties hereof, their heirs, successors, executors, administrators, and when permitted assigns.

55. Time is of the Essence.

Time is of the essence regarding this Lease.

Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022

56. Consent.

Whenever consent or approval of either party is required, that part shall not unreasonably withhold such consent or approval.

57. Corporate Status.

Each party represents that it has not had dealings with any real estate broker, finder, or other party, with respect to this Lease in any manner. Each party shall hold harmless the other party from all damages resulting from any claims that may be asserted against the other party by any broker, finder, or other person, with whom the other party has or purportedly has dealt.

58. Exhibits.

All exhibits referred to are attached to this Lease and incorporated by reference.

59. Entire Agreement.

This Lease contains the entire agreement of the parties, and by signing this Lease they agree that there is no other written or oral agreement, promise, or representation between them respecting the Premises. This Lease shall bind and inure to the benefit and advantage of the assigns of Landlord, and of the heirs, executors, administrators, and when permitted hereunder the assigns of Tenant.

IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first above written.
“City” "Tenant"
CITY OF WATSONVILLE, Charles L. King dba C.K.’s Restoration a municipal corporation

By:__________________________________ By:______________________________ Tamara Vides, City Manager Pro Tempore Charles L. King, Owner ATTEST:
_________________________________
Beatriz Vázquez Flores, City Clerk

Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022

APPROVED AS TO FORM:
_________________________________
Samantha W. Zutler, City Attorney
K

30, 31, 32, 33,34,35,36,37,38,39
A123456789
10 11
12 13
B
14 15
16 17C
21 20
19 18
29 28
27 26
25 24
23 22
40 41
1st Floor
Aircraft
Tie Down
A, B, C, & D = ADA Parking
1 Through 41 = Parking
EXHIBIT “A”
D
CK Restorations

Ord No. (CM) 1
Meeting Date: March 22, 2022
ORDINANCE NO. FINAL ADOPTION (CM)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE ADDING CHAPTER 15 ENTITLED PARK
DEVELOPMENT IMPACT FEES OF TITLE 3 (FINANCE) AND
REPEALING ARTICLES 5 AND 6 TO CHAPTER 6 (TAXATION) OF THE

WATSONVILLE MUNICIPAL CODE
WHEREAS, the City Council of the City of Watsonville hereby adopts the findings set forth herein below, the findings and facts contained in that certain City of Watsonville Parks and Recreation Development Impact Fee Study Report, dated January 18, 2022 (“Parks and Recreation Development Impact Fee Study"), prepared by City of Watsonville (“City”) staff and NBS Government Finance Group, and the findings contained in Chapter 3-15 and Watsonville Municipal Code; and,
WHEREAS, the continuing growth of the City, combined with the expectation of high-quality services by persons who live and work in the City, and reductions by the State of California in property tax allocations to local governments have been catalysts for the review of the City's existing and future public facilities and services made necessary by new development; and
WHEREAS, pursuant to Government Code Section 66000 et seq., ("Mitigation Fee Act") the City is authorized to impose fees and other exactions to provide necessary public facilities required to mitigate the negative effects of new development in the City; and WHEREAS, it is fair and equitable for new development to pay its fair share and contribute to the financing, acquisition and establishment of such facilities; and WHEREAS, the proposed fees are based upon the information contained in the Parks and Recreation Development Impact Fee Study; and

Ord No. (CM) 2
Meeting Date: March 22, 2022
WHEREAS, copies of the Parks and Recreation Development Impact Fee Study and the General Plan are on file in the City Clerk's office and are available for public review in accordance with state law, as more fully described below; and WHEREAS, this imposition of development impact fees has been reviewed by staff in accordance with the California Environmental Quality Act ("CEQA") and the CEQA Guidelines and the City of Watsonville Local Guidelines for implementing CEQA and it has been determined that the adoption of this Ordinance is exempt from CEQA pursuant to Sections 15378(b)(4), 15061(b)(3), and 15273 of the CEQA Guidelines, Section 21065 of the Public Resources Code and the City of Watsonville Local Guidelines for implementing CEQA. The intent of the Parks and Recreation Development Impact Fee Study and proposed fees is to provide a means of mitigating some of the potential environmental impacts which have been identified in planning efforts for anticipated future growth of the City. Specific environmental studies are required to be performed for each project that requires further review under CEQA prior to approval of the specific project; and
WHEREAS, the City has: 1) made available to the public, at least ten days prior to its public hearing, data indicating the estimated cost required to provide the facilities and infrastructure for which these development fees are imposed and the revenue sources anticipated to provide those facilities and infrastructure; 2) mailed notice at least thirty days prior to this meeting to all interested parties who have requested notice of new or increased development fees; and 3) held a duly noticed, regularly scheduled public hearing on March 8, 2022, at which time oral and written testimony was received regarding the proposed fees; and

Ord No. (CM) 3
Meeting Date: March 22, 2022
WHEREAS, the City Council has reviewed and considered the staff report, the Parks and Recreation Development Impact Fee Study, the General Plan, and all oral and written testimony.

Table of Contents
SECTION 1. ENACTMENT. ................................................................................................. 3 CHAPTER 15 PARK DEVELOPMENT IMPACT FEES........................................................ 4 Article 1. General Provisions ................................................................................................ 4 Sec. 3-15.101 Purpose......................................................................................... 4 Sec. 3-15.102 Findings......................................................................................... 4 Sec. 3-15.103 Definitions. .................................................................................... 6 Sec. 3-15.104 Description of fees......................................................................... 7 Sec. 3-15.105 Limited use of fees. ....................................................................... 8 Sec. 3-15.106 Imposition of fees. ......................................................................... 8 Sec. 3-15.107 Quimby In-Lieu Fees..................................................................... 9 Sec. 3-15.108 Developer construction of facilities at parks .................................. 9 Sec. 3-15.109 Fee adjustment............................................................................ 10 Sec. 3-15.110 Development agreements. .......................................................... 11 Sec. 3-15.111 Park Land Impact Fee Fund Requirement. ................................. 11 Sec. 3-15.112 Park Improvement Impact Fee Fund Requirement...................... 11 Sec. 3-15.113 Community/Recreation Center Impact Fee Fund Requirement... 12 Sec. 3-15.114 Schedule of Development Impact Fees....................................... 12 SECTION 2. SEVERABILITY. ............................................................................................ 12 SECTION 3. PUBLICATION............................................................................................... 12 SECTION 4. EFFECTIVE DATE. ....................................................................................... 13 SECTION 5. EXECUTION.................................................................................................. 13 o-0-o

THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, DOES ORDAIN AS FOLLOWS:

SECTION 1. ENACTMENT.

Title 3 (Finance) of the Watsonville Municipal Code is hereby amended by adding a new Chapter 15 entitled Park Development Impact Fees to read in words and figures as follows:

Ord No. (CM) 4
Meeting Date: March 22, 2022
CHAPTER 15 PARK DEVELOPMENT IMPACT FEES
Article 1. General Provisions
Sec. 3-15.101 Purpose.

The purpose of the Park Development Impact Fees is to enable the acquisition and/or development and/or improvement of neighborhood and community parks to provide both passive and active recreational opportunities to the residents of the City of Watsonville in order to improve the quality of life and for the public health, welfare and benefit. New development within the City generates a need for added facilities and an increased demand upon existing facilities, and the imposition of Park Development Impact Fees upon new residential development is necessary to provide funding for such new or improved facilities meeting established standards for such new development. As set forth herein, the City has established the following Park Development Impact Fees:
(1) Parkland Impact Fee; (2) Park Improvement Impact Fee; and (3) Community Centers and Recreation Facilities Impact Fee. In establishing the fees described in the following sections, the city council finds the fees adopted to be consistent with state law (California Government Code Section 66000 et seq.) and with the City’s general plan and, pursuant to Government Code Section 65913.2, has considered the effects of the fees and determines that the fees are not material with respect to the City’s housing needs as established in the housing element of the Watsonville general plan.

Sec. 3-15.102 Findings.
(a) Findings. The City Council finds:
(1) Additional parkland, community centers, and recreation facilities are needed to accommodate future growth and maintain an acceptable level of the existing park and recreational facilities for all areas of the City of Watsonville.

Ord No. (CM) 5
Meeting Date: March 22, 2022
(2) New development or conversions within the City of Watsonville result in increased usage of the existing park and recreational facilities throughout the city, which thereby increases the service requirements and the capital equipment requirements of the city’s parks and recreation facilities. (3) The City must continue to fund park land and recreation improvements within the City. These park and recreation improvements include developing additional parklands, open spaces, and recreational facilities. These additional capital expenditures are necessary to maintain the public health, safety, and welfare by assuring an acceptable level of the park and recreation facilities is available in Watsonville.
(4) In the absence of the imposition of a park improvement impact fee upon new development or conversions, the additional capital expenses necessary to maintain an acceptable level of civic services for the entire city would be unfairly imposed upon the owners and residents of the existing buildings and improvements within the city of Watsonville.
(5) New development or conversions without the payment of fees imposed by this section would not be fair to the owners and occupants of existing buildings within the city of Watsonville.
(6) The facts and evidence presented in the City’s impact fee study establish that there exists a reasonable relationship between the need for parkland, park improvements, community centers, and other recreation facilities and the impacts of the types of new development or conversions for which a corresponding fee is charged. A reasonable relationship or nexus also exists between the fee’s use and the type of new development or conversions for which the fee is charged.

Ord No. (CM) 6
Meeting Date: March 22, 2022
Sec. 3-15.103 Definitions.
(a) “Building permit” shall mean the permit required or issued by the city of Watsonville for the construction, improvement or remodeling of any structure pursuant to the city of Watsonville’s building codes.
(b) “City” shall mean the governmental body managing the administrative operations of the city of Watsonville.
(c) “City of Watsonville” shall mean all property located within the geographical area within the city of Watsonville’s city limit line.
(d) “City impact fee study” shall mean the document prepared by city staff and NBS Government Finance Group (“NBS”) entitled City of Watsonville Parks and Recreation Development Impact Fee Study" dated January 18, 2022. (e) “Conversion” shall mean converting from unusable to usable floor space, or converting the existing use to another use.
(f) “Development Permit” shall mean the permit required or issued by the City of Watsonville for the grading, site improvement, construction, or improvement of property associated with new development and conversion.
(g) “Developer” shall mean any person who is the owner or authorized agent of an owner of any new development within the city of Watsonville. (h) “Dwelling unit” shall mean a residential dwelling within the city of Watsonville, as defined in Chapter 14-18.322 of this code.
(i) “New development” shall mean the original construction of residential, or the addition of usable floor space within existing residential buildings, or the construction of new accessory buildings.

Ord No. (CM) 7
Meeting Date: March 22, 2022
(j) “Owner” shall mean the legal owner(s) or the authorized agent(s) for any owner of property being developed.
(k) “Park Development Impact Fees” shall mean, collectively, those fees established by this Title and includes the following separate fees: (1) Parkland Impact Fee; (2) Park Improvement Impact Fee; and (3) Community Centers and Recreation Facilities Impact Fee.
(l) “Usable floor space” shall mean any interior space constructed or converted to be used for human occupancy in accordance with the Uniform Building Code.

Sec. 3-15.104 Description of fees.
(a) A Parkland Impact Fee is hereby established on new residential development or conversions within the city of Watsonville in accordance with the schedule of fees that may be established by the City Council by resolution. No fee shall be assessed on any governmental use by the city, county, state or federal government. (b) A Park Improvement Impact Fee is hereby established on new residential development or conversions within the City of Watsonville in accordance with the schedule of fees that may be established by the City Council by resolution. No fee shall be assessed on any governmental use by the city, county, state or federal government. (c) A Community Centers and Recreational Facilities Impact Fee is hereby established on new residential development or conversions within the City of Watsonville in accordance with the schedule of fees that may be established by the City Council by resolution. No fee shall be assessed on any governmental use by the city, county, state or federal government.
(d) At least every eight (8) years, the City Council shall review these fees to determine whether the fee amounts are reasonably related to the impacts of development

Ord No. (CM) 8
Meeting Date: March 22, 2022
and whether the public improvement projects described in the city’s capital improvement projects related to parks and recreation are still needed. Failure to undertake this review shall not invalidate the imposition of the fees.

Sec. 3-15.105 Limited use of fees.

The revenues raised by payment of these Park Development Impact Fees shall each be placed in separate special impact fund accounts for (1) Park Land Impact Fee; (2) Park Improvement Impact Fee; and (3) Community Centers and Recreational Facilities Impact Fee, and such revenues, along with any interest earnings, shall be used solely to:
(a) Pay for the acquisition of parkland, park and recreation facilities maintenance, the City’s future construction of those public improvement projects at least partially allocable to new residential development or conversions as described in the city’s capital improvement projects list related to parks, community centers, and recreation facilities; or (b) Reimburse developers who have been required or permitted by Section 3-

15.108 to install such listed facilities which are oversized with supplemental size, length or capacity.

Revenue from impact fees may also be used for temporary loans from one impact fee fund/account to another impact fee fund/account.

Sec. 3-15.106 Imposition of fees.
(a) Park Development Impact Fees shall be imposed on:
(1) New residential development; and
(2) Conversions, as provided in this chapter.
(b) Park Development Impact Fees shall be paid by the owner of the property on which new development or conversion is to occur. The fees shall be collected by the city prior to the issuance of the building or development permit(s) for such development or

Ord No. (CM) 9
Meeting Date: March 22, 2022
conversion, whichever occurs first, unless payment at a later time is mandated by Government Code Section 66007. The fees shall be calculated based on the fee schedule in effect at the time the first building permit or development permit is issued. (c) Except as otherwise provided herein, square footage of residential buildings shall be measured by exterior dimensions. Unfinished attics, crawlspaces, and basements shall not be assessed until converted and finished as usable floor space. (d) A building or structure consisting of non-usable floor space, e.g., a garage, carport or storage shed, shall not be deemed to be part of the residential building for the purpose of determining the square footage of the residential building. (e) Each dwelling unit within a multifamily residential building or development project shall be deemed a separate dwelling unit for which a fee shall be imposed and shall be paid.
(f) Additions to an existing building shall be deemed to occur whenever the amount of usable floor space is increased, or whenever new building space is constructed where no structures existed as part of the existing building, whether or not the total building floor area is increased by the new construction.
(g) No development impact fee shall be imposed more than once for the same floor space.

Sec. 3-15.107 Quimby In-Lieu Fees.

Schedule of Quimby Fees. In-lieu fees shall be imposed and/or the dedication of parkland shall be required as a condition of approval of tentative map or parcel map pursuant to Chapter 6 of Title 13.

Sec. 3-15.108 Developer construction of facilities at parks

Ord No. (CM) 10
Meeting Date: March 22, 2022
(a) The reimbursement amount shall not include the portion of the improvement needed to provide services or mitigate the need for the facility or the burdens created by the development.
(b) A developer who installs an off-site improvement at a park as a special mitigation measure for a project identified on the capital improvement projects list to be funded at least partially by impact fees may claim credit on such a fee not to exceed the impact fee payable for the development project. The City’s Public Works Director is authorized to allow such credit.
(c) If a developer is dissatisfied with the decision of the City’s Public Works Director regarding a reimbursement agreement or a credit of development impact fees, the developer shall appeal for relief to the City Council by filing a written appeal with the City Clerk within fifteen (15) days after the disputed decision pursuant to Part 11 of Chapter 14-10 of the City Code. The appeal shall state in sufficient detail the basis for the claimed credit. The decision of the City Council shall be final.

Sec. 3-15.109 Fee adjustment.
(a) A developer of any project, including any new building or addition to or conversion of any existing building, subject to the fees described in this chapter, may apply to the City Council for a reduction or adjustment of the fee(s), or a waiver of the fee(s), based upon the absence of any reasonable relationship between the nature of the impact of the development and either the amount of the fee charged or the type of facilities to be financed.
(b) The application for a fee reduction, adjustment, or waiver shall be made in writing and filed with the City Clerk within twenty (20) days after the City has provided to the applicant the amount of the fees due.

Ord No. (CM) 11
Meeting Date: March 22, 2022
(c) The application shall state in detail the factual basis for the claim of waiver, reduction, or adjustment. The city council shall consider the application at a hearing held at the next available council hearing after the filing of the fee adjustment application. The City Council’s decision shall be supported by findings of fact. The decision of the city council shall be final.
(d) If a reduction, adjustment, or waiver is granted, any change in use within the project shall invalidate the waiver, adjustment or reduction of the fee.

Sec. 3-15.110 Development agreements.

The terms of any development approval or building permit(s) may be negotiated as part of a development agreement which may require a developer to provide or finance any public projects deemed agreeable to both the developer and the City Council.

Development constructed under the terms of an approved development agreement may be exempted from the payment of any of the impact fees required under this chapter.

Sec. 3-15.111 Park Land Impact Fee Fund Requirement.

The City Council hereby establishes a special fund designated as “Park Land Impact Fee Fund.” All funds from the imposition of the fees provided herein, shall be deposited in such Fund to be used exclusively for the purpose of mitigating the impact of new development on the need for parks.

Sec. 3-15.112 Park Improvement Impact Fee Fund Requirement.

The City Council hereby establishes a special fund designated as “Park Improvement Impact Fee Fund.” All funds from the imposition of the fees provided herein, shall be deposited in such Fund to be used exclusively for the purpose of developing new or refurbishing existing facilities to maintain the existing level of service or (2) achieve an adopted level of service that is consistent with the general plan.

Ord No. (CM) 12
Meeting Date: March 22, 2022
Sec. 3-15.113 Community/Recreation Center Impact Fee Fund Requirement.

The City Council hereby establishes a special fund designated as “Community/Recreation Center Impact Fee Fund.” All funds from the imposition of the fees provided herein, shall be deposited in such Fund to be used exclusively for the purpose of mitigating the impact of new development on the need for community centers and recreation facilities in Watsonville.

Sec. 3-15.114 Schedule of Development Impact Fees
The schedule of the Park Development Impact Fees imposed by this chapter shall be established and adjusted from time to time by resolution of the city council. The impact fees shall not exceed the cost of mitigating the impact of new development.

SECTION 2. SEVERABILITY.

Any provision of the Watsonville Municipal Code or appendices thereto inconsistent with the provisions of the Ordinance, to the extent of such inconsistencies and no further, are repealed or modified to that extent necessary to affect the provisions of this Ordinance. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Watsonville hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.

SECTION 3. PUBLICATION.

Ord No. (CM) 13
Meeting Date: March 22, 2022
This ordinance shall be published in the Watsonville Register-Pajaronian in compliance with the provisions of the Charter of the City of Watsonville.

SECTION 4. EFFECTIVE DATE.

This ordinance shall be in force and take effect thirty (30) days after its final adoption.

SECTION 5. EXECUTION.

The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance.
******************************

Ord No. (CM) 14
Meeting Date: March 22, 2022
The foregoing ordinance was introduced at the regular City Council meeting of the City of Watsonville, held on the 8
th day of March , 2022, by Member Quiroz-Carter ,
who moved its adoption, which motion being duly seconded by Member García , was upon roll call carried and ordered printed and published by the following vote:

AYES: COUNCIL MEMBERS: Dutra, Estrada, García, Hurst,
Montesino, Quiroz-Carter, Parker
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None

Reso No. (CM)
Meeting Date: March 8, 2022
ORDINANCE NO. FINAL ADOPTION (CM)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE AMENDING CHAPTER 6 OF TITLE 13 OF THE
WATSONVILLE MUNICIPAL CODE BY REPEALING ARTICLE 2
(PARKLAND DEDICATIONS AND PAYMENT OF IN-LIEU FEES) IN ITS ENTIRETY AND REPLACING WITH A NEW ARTICLE 2 ENTITLED

QUIMBY PARK LAND DEDICATION AND FEES IN LIEU)
WHEREAS, Government Code Section 66477 (also known as the "Quimby Act") authorizes the legislative body of a city to, by ordinance, require the dedication of land or payment of fees in lieu thereof ("Quimby Fees"), or a combination of both, for park and recreational purposes as a condition to the approval of any tentative map; and WHEREAS, the Act provides that, prior to adoption of such an ordinance, the City Council must have adopted a general plan or specific plan containing policies and standards for parks and recreational facilities, and the park and recreational facilities are in accordance with definite principles and standards; and WHEREAS, in furtherance of the Parks and Recreation Element of the City's 2005 General Plan, the Watsonville Parks and Recreation Master Plan was prepared, which Plan contains policies and standards for parks and recreation facilities; and WHEREAS, pursuant to Section 15168(c)(2) of Title 14 of the California Code of Regulations, the adoption of this ordinance does not require additional review under the California Environmental Quality Act, Public Resources Code Section 21000 et seq. ("CEQA") because the proposed amendments to the Municipal Code are within the scope of the project covered by the Environmental Impact Report for the City's General Plan (State Clearinghouse No. 2012071033); and
WHEREAS, on March 1, 2022, the Planning Commission held a duly noticed public hearing to receive public testimony on the proposed Ordinance to appraise all

Ord No. (CM) 2
Meeting Date: March 8, 2022
relevant information pertaining thereto, and after considering all relevant public testimony as well as all materials in the staff report and accompanying documents, the Planning Commission adopted Resolution No. 03-22 (PC) recommending to the City Council approval of Ordinance No. _______ (CM) and recommends that the Council find that Ordinance No. ______ (CM) does not require further environmental review under CEQA; and
WHEREAS, the Parks and Recreation Commission reviewed this proposed Ordinance at its regular meeting on March 7, 2022, and after considering all relevant public testimony as well as all materials in the staff report and accompanying documents, the Parks and Recreation Commission recommended to the City Council approval of Ordinance. No. _______ (CM).

WHEREAS, on March 8, 2022, the City Council held a duly noticed public hearing to receive public testimony on Ordinance No. ______ (CM) and to appraise all relevant information pertaining thereto, and considered all public testimony as well as all materials in the staff report and accompanying documents.

Table of Contents
SECTION 1. ENACTMENT. ............................................................................................ 3 TITLE 13 SUBDIVISIONS AND MAPS ........................................................................... 3 CHAPTER 6 DEDICATIONS AND RESERVATIONS ..................................................... 3 ARTICLE 2. QUIMBY PARK LAND DEDICATION OR FEES IN LIEU........................ 3 Sec. 13-6.01 Findings and purpose...................................................................... 3 Sec. 13-6.02 Definitions. ...................................................................................... 4 Sec. 13-6.03 Reserved......................................................................................... 5 Sec. 13-6.04 Requirements for residential subdivisions. ...................................... 5 Sec. 13-6.05 Land requirement. ........................................................................... 7 Sec. 13-6.06 Density formula. .............................................................................. 7 Sec. 13-6.07 Procedure........................................................................................ 7 Sec. 13-6.08 Calculation of fair market value. ...................................................... 8 Sec. 13-6.09 Calculation of requirement. ............................................................. 8

Ord No. (CM) 3
Meeting Date: March 8, 2022
Sec. 13-6.10 Credit............................................................................................... 9 Sec. 13-6.11 Quimby Park Land In-Lieu Fee Fund Requirement....................... 15 Sec. 13-6.12 Exclusions. .................................................................................... 15 SECTION 2. RENUMBERING. ..................................................................................... 16 SECTION 3. CEQA....................................................................................................... 16 SECTION 4. SEVERABILITY. ...................................................................................... 17 SECTION 5. PUBLICATION......................................................................................... 17 SECTION 6. EFFECTIVE DATE................................................................................... 17 SECTION 7. EXECUTION. ........................................................................................... 17 o-0-o

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. ENACTMENT.

Chapter 6 (Dedications and Reservations) of Title 13 (Subdivisions and Maps) of the Watsonville Municipal Code is hereby amended by repealing Article 2 (Parkland Dedications and Payment of In-Lieu Fees) in its entirety and adding a new Article 2 entitled Quimby Park Land Dedication and Fees in Lieu to read in words and figures as follows:

TITLE 13 SUBDIVISIONS AND MAPS
CHAPTER 6 DEDICATIONS AND RESERVATIONS
ARTICLE 2. QUIMBY PARK LAND DEDICATION OR FEES IN LIEU
Sec. 13-6.01 Findings and purpose.

The City Council hereby finds that development of residential subdivisions have a significant effect on the use and availability of park and recreation space and facilities, and that the limited open space and recreation amenities provided by these residential developments are insufficient to meet the needs of the residents for open space and recreational facilities. The intent of this chapter is to require that such developments

Ord No. (CM) 4
Meeting Date: March 8, 2022
contribute their fair share toward the purchase, development and/or improvement of park and recreational facilities. The provisions of this chapter are enacted pursuant to the Charter, the open space section of the environmental management chapter of the general plan and the park and open space plan of the city as well as Sections 66477 and 66479 of the Government Code of the State of California, as may be applicable.

Sec. 13-6.02 Definitions.

As used in this chapter:
(a) "Affordable housing" for purposes of this chapter shall mean housing which costs a very low-, low- or moderate-income household no more than approximately thirty (30) percent of its gross monthly income as defined in 14-46.030 of the City Code. (b) “City Code” shall mean the Watsonville Municipal Code. (c) "Historic resource" is as defined in Section 5020.1 of the California Public Resources Code."
(d) "Land dedication," "dedicate land" or "land to be dedicated" and other such references to land dedicated pursuant to this chapter shall mean, for purposes of this chapter, land dedicated to the city in fee simple ownership. (e) "Privately owned/publicly accessible open space" (POPA) shall mean a parcel of private land made accessible to the public that meets the requirements set forth in 14-16.1900-1903 of the City Code.
(f) "Subdivider" shall mean a person, firm, corporation, partnership or association who proposes to divide, divides or causes to be divided real property into a subdivision.
(g) "Subdivision" shall mean the same as defined in Section 66424 of the California Government Code.

Ord No. (CM) 5
Meeting Date: March 8, 2022
(h) "Subdivision map" shall mean any map filed pursuant to any proceedings for subdivision as defined in Title 13 of this City Code.

Sec. 13-6.03 Reserved.

Sec. 13-6.04 Requirements for residential subdivisions.

As a condition of approval of any final subdivision map, the subdivider shall dedicate land, pay a fee in lieu thereof, or both, at the option of the city, for park or recreational purposes according to the following standards:
(a) Dedication of sites. Where a park or recreational facility has been designated in the parks and recreation section of the open space section of the environmental management chapter of the general plan, a precise plan or the park and open space plan of the city, and the park or facility is to be located in whole or in part within the proposed subdivision, to serve the immediate and future needs of the residents of the subdivision, the subdivider shall be required to dedicate land for park and recreational facilities sufficient in size to serve the residents of the subdivision area. The parkland to be so dedicated shall conform to locations and standards set forth in the general plan, a precise plan, if applicable, and the park and open space plan of the city.

The slope, topography and geology of the site, as well as its surroundings, must be suitable for the intended park or recreation purpose. The amount of land to be provided shall be determined pursuant to the standards set forth in 13-6.06 of this chapter establishing the formula for land dedication or for payment of fees in lieu thereof. (b) If parkland is dedicated in accordance with this section, the development standards for a project, as set forth in Title 8 of the Watsonville Municipal Code or an adopted precise plan or master plan, shall be calculated to include the dedicated parkland for floor area, lot size and density.

Ord No. (CM) 6
Meeting Date: March 8, 2022
(c) Fees in lieu of land dedication. If there is no park or recreational facility designated or required in whole or in part within a proposed subdivision which meets the requirements set forth herein, the subdivider shall be required to pay a fee in lieu of land dedication equal to the value of the land that would otherwise be dedicated as determined by Section 13-6.06 of this chapter.

A fee in lieu of land dedication hereunder shall be required when:
(1) A subdivider is subdividing land on which no park is shown or proposed in the general plan, a precise plan or the park and open space plan; or (2) When dedication is impossible, impractical or undesirable as determined by the City as appropriate; or
(3) When the proposed subdivision contains fifty (50) parcels of land or less.
(d) Dedication and fees required. In certain subdivisions in excess of fifty (50) parcels of land, a combination of land dedication and fee payment may be required. These shall be subdivisions in which:
(1) Only a portion of the land to be subdivided is proposed in the general plan, a precise plan, or the park and open space plan as the location for a park or recreational facility, in which case that land, or a portion thereof within the subdivision, shall be dedicated for park purposes, and a fee shall then be required in lieu of any additional land that would have been required to be dedicated under this chapter; or
(2) A major part of the park or recreation site falling within the subdivision has already been acquired, and only a small portion of land is needed from the subdivider to complete the park or recreation site, in which case the land needed

Ord No. (CM) 7
Meeting Date: March 8, 2022
shall be required for dedication, and a fee shall then be required in lieu of the additional land that would have been required to be dedicated under this chapter. (e) Use of and basis for in-lieu fees. The fees collected pursuant to this chapter are to be used only for the purpose of providing park or recreational facilities to the fullest extent permissible under Sections 66477 and 66479 of the Government Code of the State of California.

Sec. 13-6.05 Land requirement.

The public interest, convenience, health, welfare and safety require that three (3) acres of property for each one thousand (1,000) persons residing within the city be devoted to public parks and recreational facilities.

Sec. 13-6.06 Density formula.

In calculating dedication and in-lieu fee requirements under this chapter, the following table, derived from the density assumptions of the general plan, shall apply:

Table 13-6.06
Density Formula
Dwelling Unit
Size in Sq Ft
Acres per
Capita
Population per
Unit
Acres per
Unit
<600 0.003 1.32 0.0040
600-900 0.003 2.31 0.0069
>900-1,200 0.003 3.28 0.0098
>1,200-2,100 0.003 4.15 0.0124
>2,100-2,500 0.003 4.59 0.0138
>2,500 0.003 4.96 0.0149
Sec. 13-6.07 Procedure.

The public works director, zoning administrator, subdivision committee or City Council, as appropriate, shall, upon approving a residential development or subdivision map, determine the conditions necessary to comply with the requirements for park land dedication or fees in lieu thereof as set forth in this chapter, and said conditions shall be

Ord No. (CM) 8
Meeting Date: March 8, 2022
attached as conditions of approval. The establishment of said conditions for projects other than a subdivision map shall comply with Government Code Section 66001.

Sec. 13-6.08 Calculation of fair market value.
(a) The “fair market value” shall be based on an appraisal of vacant residential land within the City completed no more than 60 days prior to the project application and submitted by the applicant concurrently with the project application. The appraisal shall be obtained at the applicant’s sole cost and expense and prepared by an appropriately licensed and qualified appraiser approved by the City. (b) The city shall determine the parkland dedication requirement within the adopted range of fair market values set forth in the appraisal for the applicable density of the project at the time a formal application for a residential development is submitted.

Nothing shall preclude the City from recalculating the parkland dedication requirement based on modifications to the application or any preexisting site or development conditions.
(c) If a residential development application is resubmitted more than sixty (60) days after the original submittal with modifications that results in a change in the project's dwelling density category per Table 13-6.06, then the applicant must obtain and submit a then current update to the appraisal submitted pursuant to subparagraph “a,” above.

Sec. 13-6.09 Calculation of requirement.

For the purpose of the formula established by this section, the following definition shall apply:
"A" equals the parkland dedication acreage required per dwelling unit within the proposed residential subdivision for park and recreational facilities as set forth herein.

Ord No. (CM) 9
Meeting Date: March 8, 2022
"B" equals the number of new dwelling units in the proposed residential development.
"C" equals the fair market value per acre of land in the proposed residential development.
"F" equals the in-lieu fee required.
"L" equals the land required for dedication.

The following formula shall be used in calculating the land required for dedication under this chapter, in acres:

A × B = L
The following formula shall be used in calculating the in-lieu fees required to be paid under this chapter:

A × B × C = F
Sec. 13-6.10 Credit.

Privately owned/publicly accessible (POPA) open space credit. (a) Credit amount. Privately owned/publicly accessible (POPA) open space proposed in a residential or mixed-use residential development that meets the eligibility requirements set forth herein may receive a credit up to seventy-five (75) percent of the value of the land devoted to the POPA open space against the land dedication or fees in-lieu thereof required by this chapter.
(b) Eligibility criteria. To be eligible for POPA open space credit, the POPA open space must meet either the general requirements set forth in subsection (a) or the alternate proposal requirements set forth in subsection (b). (c) General requirements.

Ord No. (CM) 10
Meeting Date: March 8, 2022
(1) A minimum size of 0.4 acre or, if the residential development is located within a precise plan or master plan with identified open space, the minimum size of the identified open space in the precise plan or master plan. (2) The space shall conform with the provisions of the parks, open space and community facilities chapter of the general plan and provisions of the parks and open space plan.
(3) The POPA open space shall be located with frontage of a public street(s) or with a prominent and highly visible entrance and, in all cases, have minimum dimensions of one hundred (100) feet on all sides. (4) The POPA open space complies with the city's guidelines for hydration stations and restroom buildings in city parks. (5) The POPA open space will include a sign(s) with notification of the area as public open space and posted hours, name and contact information for maintenance. The sign shall be reviewed and approved through a sign permit pursuant to Chapter 8-6 of the City Code.
(6) Required elements. The entirety of the POPA open space shall consist of any combination of elements, but not less than one (1) element, meeting the minimum requirements as defined in Table 13-6.10. The selected elements must be supported by the required analyses as set forth in subsection d.2.(b), Process.

Table 13-6.10
Open Space Credit Elements
Element Minimum Requirements
Open,
usable field
Must be level, with proper irrigation and water amenities to support active field recreation. Minimum total area of 0.3 acre with a minimum dimension of sixty (60) feet on all sides of the element.

Ord No. (CM) 11
Meeting Date: March 8, 2022
Table 13-6.10
Open Space Credit Elements
Dog park Have separate areas for large dogs and small dogs. Adequate amenities such as bag dispensers and dog-friendly hydration stations.

Minimum total area of 0.25 acre for the dog park with a minimum dimension of sixty (60) feet on all sides of the element.

Game
courts
Must contain at least one (1) full game court that meets the standards of the professional association for the type of activity proposed.

Playgrounds Must have at least two (2) structures (climbable apparatus): one (1) for tots (ages two (2) to five (5)) and one (1) for youth (ages five (5) to twelve (12) populations.

Picnic area Must be able to sit at least fifteen (15) individuals and have one (1) barbecue for every two (2) tables. Must be distinguishable from other elements in the open space.

Exercise
area
Must be able to support ten (10) people using equipment at the same time and include ADA-accessible equipment.

Park trail Must be a designated, multi-use, class 1 trail as listed in the Caltrans Highway Design Manual—Bikeway Designations for the entire length of the proposed trail. The trail must provide a clear and direct path, with appropriate signage, through the project site, connecting any of the following:
• Existing or planned public facilities (e.g., public buildings, transit stops and centers, schools, parks, etc.).
• Expand, or allow for future expansion of, the existing city park trail network. Provides more than a public trailhead or crossing. • A new connection that expands an identified network in the city's bicycle transportation and pedestrian master plans to a major public facility or major public street, or significantly reduces the time or length of travel by providing an alternative connection from an identified network in the adopted bicycle transportation and pedestrian master plans.

Maintained
natural
habitat
space
• The element must be planted (existing or new) to provide an estimated sixty-five (65) percent to seventy-five (75) percent tree canopy coverage within five (5) years of construction completion. • All foliage and plants should be California native species or approved by the forestry and roadways manager.
• Area must provide seating for a minimum of ten (10) people. • Area shall be landscaped and maintained to be traversed by all population demographics.
• If applicable, include informational or educational signage about native landscape and plants within the element.

Alternate
element
• An applicant may submit a request to include one (1) alternate element in the POPA open space not listed in this Table 13-6.10. • Must similarly serve the public as the elements set forth in this Table 13-6.10.

Ord No. (CM) 12
Meeting Date: March 8, 2022
(7) Exclusion from credit.
(i) Yards, court areas, setbacks, decorative landscape areas, bike and pedestrian paths, and other open areas required with residential site design by a precise plan, master plan or zoning code shall be excluded from the credit computation of POPA open space.
(ii) Irregularly shaped land with limited utility, accessibility or topographic conditions that are unsuitable for elements described in Table 13-6.10 shall not be eligible for credit.
(d) Alternate proposals. An alternate proposal is a unique, high-quality open space proposal that may not otherwise be achieved through the general requirements in subsection (a).

An applicant may be eligible for a POPA open space credit if greater than one (1) acre of single, contiguous land is provided and the POPA open space:
(1) Serves a diverse park user population; and
(2) Provides design benefits greater than the general requirements set forth in subsection (a).

Term and maintenance. All POPA open spaces shall be maintained as set forth in this section.
(a) The POPA open space shall be publicly accessible during the operating hours of city parks.
(b) The POPA open space shall be wholly owned and maintained by the property owner(s), homeowner association(s) or some combination thereof of the residential development awarded the credit.

Ord No. (CM) 13
Meeting Date: March 8, 2022
(c) The right of the public to access and use the open space shall be recorded against the property by an easement, covenant or restrictions subject to review and approval by the city attorney, and such right shall run with the land in perpetuity. (d) The property owner shall enter into an agreement with the city in conjunction with, or as part of, the easement, covenant or restrictions to identify maintenance responsibilities, procedures for future modifications or upgrades to the POPA open space and violation and/or penalties for noncompliance subject to review and approval by the city attorney. The agreement shall indemnify the city for use of the POPA open space by the public.
(e) Any future redevelopment of a project site granted a POPA open space credit shall submit a formal development application and be required to provide the minimum acreage of the POPA open space as originally credited. The POPA open space shall be subject to compliance with the requirements of this chapter in place at the time of application submission.

Historic resource. Where a historic resource is preserved or rehabilitated as part of a residential development, a credit may be given against the requirement of land dedication or fees in lieu thereof due on the residential development, required by this chapter, up to a maximum of fifty (50) percent of the value of the land dedication or fees in lieu thereof required by this chapter. This section may also apply to the relocation of a historic resource provided it is preserved or rehabilitated in conjunction with the relocation. The developer, as part of the application for a credit, shall file an application for a historic preservation permit pursuant to Section 8-13.04 et seq. of the City Code.

Credit may be awarded pursuant to subsections d. and e. of this section when it is in the public interest to do so.

Ord No. (CM) 14
Meeting Date: March 8, 2022
Process.
(a) To request a credit pursuant to this section, the applicant shall submit a written request specifying the credit being [sought] at time of a formal development application submittal, which shall include a description of how the request meets the credit requirements in this chapter. Each request for a credit shall also include the information required under subsections (2), (3) or (4) as applicable. (b) For the POPA open space credit, the applicant shall also submit the following with a formal development application:
1) Dimensional site, design and landscaping plans that detail the proposed POPA open space and elements; and
(2) Analyses.
(3) A demographic analysis of the area within one (1) mile of the proposed POPA open space (measured from the project site boundary), including the target demographics of the new residential development. (4) An analysis of the elements at the closest public parks and/or POPA open spaces within one (1) mile of the project site, up to a maximum of five (5) parks and/or POPA open spaces.
(5) For the historic resource credit, the applicant shall also submit with a formal development application an itemized cost estimate of planned rehabilitation or relocation costs for the historic resource.

Approval.
(a) POPA open space and historic resource credits may be awarded by the city council with written findings that the applicable requirements are met.

Ord No. (CM) 15
Meeting Date: March 8, 2022
(b) The affordable housing credit may be awarded when the public works director, community development director, community services director, subdivision committee or city council, as appropriate to the development application, makes written findings that the applicable requirements are met.

Sec. 13-6.11 Quimby Park Land In-Lieu Fee Fund Requirement.

The City Council hereby establishes a special fund designated as “Quimby Park Land in-Lieu Fee Fund.” All funds from the imposition of the fees provided herein, shall be deposited in such Fund to be used exclusively for the purpose of developing new or rehabilitating existing neighborhood or community park or recreational facilities to serve the subdivision (dedicating the land or paying the fees). In-lieu fees may be used for the purpose of developing new or rehabilitating existing park or recreational facilities in a neighborhood other than the neighborhood in which the subdivision paying the fees is located, if certain conditions are met, as defined by statute.

Sec. 13-6.12 Exclusions.
(a) Nothing in this Chapter shall be construed to limit the city's power to require fees or land dedication for park or recreation purposes as a condition of approval of a tentative map or preliminary parcel map pursuant to the Subdivision Map Act of the State of California or Chapter 6 of the City Code; nor shall they apply to the repair of damages caused by natural disasters such as earthquakes, floods or fires as determined by the city; nor shall they apply to the construction of any nonresidential buildings or structures; nor shall they apply to any unit for which the park and recreation fee had been paid based on the then existing and established fee density formula; nor shall they apply to an existing building that is altered or expanded where no additional residential units are created and

Ord No. (CM) 16
Meeting Date: March 8, 2022
where the use is not changed; nor shall they apply to the first single-family dwelling unit in a single-family residential district (R1) as described in Section 14-16.200 of the City Code; nor shall they apply to single room occupancy (SRO) living unit facilities as defined in Section 14-18.708 of the City Code.
(b) The requirements established by Article 2 of Chapter 6 relating to subdivisions shall not apply to commercial or industrial subdivisions, nor do they apply to nonresidential condominium units, nor do they apply to projects or stock cooperatives which consist of the subdivision of air space in an existing apartment building which is more than five (5) years old when no new dwelling units are added, nor do they apply to parcel maps for a subdivision containing less than five (5) parcels and not used for residential purposes; nor do they apply to a maximum of two (2) dwelling units that exist on a property if, at the time the subdivision is approved, the existing units are to remain on the property, nor do they apply to any units for which the park and recreation fee required by this Article had been paid based on the then existing and established density formula.

SECTION 2. RENUMBERING.

To the extent that this amendment necessitates a renumbering of to the code sections that follow, such renumbering is hereby authorized by this ordinance.

SECTION 3. CEQA.

The City has complied with the California Environmental Quality Act in the approval of the subject regulations in that the adoption of this Ordinance establishing regulations for the payment of fees for park and recreational purposes creates and/or modifies a

Ord No. (CM) 17
Meeting Date: March 8, 2022
government funding mechanism which is not a physical change in the environment and therefore, is not a project under CEQA. 14 Cal. Code of Regulations §§ 15378(b)(4).

SECTION 4. SEVERABILITY.

Any provision of the Watsonville Municipal Code or appendices thereto inconsistent with the provisions of the Ordinance, to the extent of such inconsistencies and no further, are repealed or modified to that extent necessary to affect the provisions of this Ordinance. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Watsonville hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.

SECTION 5. PUBLICATION.

This ordinance shall be published in the Watsonville Register-Pajaronian and/or Santa Cruz Sentinel in compliance with the provisions of the Charter of the City of Watsonville.

SECTION 6. EFFECTIVE DATE.

This ordinance shall be in force and take effect thirty (30) days after its final adoption.

SECTION 7. EXECUTION.

Ord No. (CM) 18
Meeting Date: March 8, 2022
The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance.
******************************

Ord No. (CM) 19
Meeting Date: March 8, 2022
The foregoing ordinance was introduced at the regular City Council meeting of the City of Watsonville, held on the 8
th day of March , 2022, by Member Quiroz-Carter ,
who moved its adoption, which motion being duly seconded by Member García , was upon roll call carried and ordered printed and published by the following vote:

AYES: COUNCIL MEMBERS: Dutra, Estrada, García, Hurst,
Montesino, Quiroz-Carter, Parker
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None

3/17/2022 10:08:29 PM
C:\Program Files\eSCRIBE\TEMP\2282721042\2282721042,,,Report - Appt of City Clerk and Contract.docx Agenda Report
MEETING DATE: Tuesday, March 22, 2022
TO: City Council
FROM: DEPUTY CITY MANAGER MANNING

HIRING SUBCOMMITTEE
SUBJECT: APPOINTMENT OF IRWIN IVAN ORTIZ TO SERVE AS CITY CLERK

AND APPROVAL OF CONTRACT BETWEEN THE CITY OF

WATSONVILLE AND IRWIN IVAN ORTIZ FOR EMPLOYMENT AS
CITY CLERK.

STATEMENT OF ISSUES:

With the retirement of Beatriz Flores, who served as the City Clerk since 2008, the City Council must appoint a successor and enter into a contract with a new City Clerk.

RECOMMENDED ACTION:

It is recommended that the City Council adopt a resolution appointing Irwin Ivan Ortiz as City Clerk and approving a contract between the City of Watsonville (City) and Irwin Ivan Ortiz (Employee) for employment as City Clerk.

DISCUSSION:

The Mayor appointed a subcommittee to oversee the hiring of a new City Clerk upon notification that the City Clerk was retiring. The subcommittee included Mayor Parker, Mayor Pro Tempore Montesino, and Council Member Garcia. An open recruitment was conducted and sixteen applications were received. These applications were screened for the most qualified applicants and five were selected to be interviewed. The sub-committee conducted the interviews and recommended the top candidate to be interviewed and considered by the full City Council. Based on the applications and interviews, the City Council selected Irwin Ortiz, the current Assistant City Clerk, based on his education, knowledge, skills, and overall qualifications to serve as City Clerk.

The contract includes a base salary of $125,082 per year and benefits equitable to the City’s at-will employees as defined in the Compensation and Benefits Plan for the Executive Team and includes a 2.5% increase in July 2022. Contribution to a deferred compensation plan will be considered in September 2022 based on performance. Additionally, in April 2023 and every year thereafter, employee performance will be reviewed and compensation may be increased at the discretion of the City Council. This contract may be terminated with or without cause by either party with a 45 day advance written notice. Should termination occur without cause, employee will be subject to severance pay.

3/17/2022 10:08:29 PM
C:\Program Files\eSCRIBE\TEMP\2282721042\2282721042,,,Report - Appt of City Clerk and Contract.docx STRATEGIC PLAN:

This action supports all aspects of the Strategic Plan.

FINANCIAL IMPACT:

The contract which includes $125,082 in annual base salary can be absorbed in the current budget with the retirement of the former City Clerk.

ALTERNATIVE ACTION:

The City Council could elect not to approve the contract.

ATTACHMENTS AND/OR REFERENCES (If any):

None.

Reso No. (CM)
Meeting Date: 032222
ri 3/17/2022 8:49:01 PM SWZ ______ TV ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPOINTING IRWIN IVAN ORTIZ CITY CLERK AND

APPROVING A CONTRACT BETWEEN THE CITY OF WATSONVILLE

AND IRWIN IVAN ORTIZ FOR EMPLOYMENT AS CITY CLERK
WHEREAS, with the retirement of Beatriz Flores, who served as the City Clerk since 2008, the City Council must appoint a successor and enter a contract with the new City Clerk.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:

1. This action is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15378(b)(5), in that adopting a Resolution appointing a City Clerk and approving a Contract does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, and because the action constitutes organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment and if a “project,” is exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.

2. That Irwin Ivan Ortiz be and is hereby appointed City Clerk, and he shall have the powers and authority granted the City Clerk in Section 803 of the Charter of the City of Watsonville.

Reso No. (CM)
Meeting Date: 032222 2

3. That the agreement between the City of Watsonville and Irwin Ivan Ortiz for employment as City Clerk of the City of Watsonville, a copy of which is attached hereto and incorporated herein by this reference, is fair and equitable and is hereby approved.

4. That the Mayor be and is hereby authorized and directed to execute the Contract for and on behalf of the City of Watsonville in the form attached hereto and incorporated herein by this reference, with minor revisions that may be approved by the City Manager Pro Tempore and the City Attorney.
****************************************

1 AT-WILL EMPLOYMENT AGREEMENT
OF
Irwin Ivan Ortiz
This agreement is between the CITY OF WATSONVILLE ("City"), a municipal corporation organized in the State of California, and IRWIN IVAN ORTIZ ("Employee") (“Agreement”). The parties agree as follows:

1. Effective Date
The effective date of this Agreement is March___, 2022.

2. Appointment as City Clerk and Start Date
The City agrees to employ Employee as City Clerk for the City, subject to the terms, conditions and provisions of this Agreement. Employee accepts such employment. Employee shall be “at will” and serve at the pleasure of the City Council.

Employee's employment with the City shall be subject to all requirements of the City's Personnel Rules (“Rules”) unless contradicted by some provision of this Agreement. Employee shall perform all duties consistent with the City’s Rules and comply, at all times, with the City’s Personnel Rules.

3. Term of Agreement
The term of this Agreement shall be from March _, 2022 until terminated by either party pursuant to section five (5) below. Employee is an at will employee who may be terminated at any time, with or without cause, and shall serve at the pleasure of the City Council. Employee may resign at any time for any reason by providing notice to City Council.

4. Duties and Responsibilities
a. Employee will perform the functions and duties specified in the laws of the United States and the State of California in Section 803 of the City’s Charter, as well as the City’s Municipal Code, the Personnel Rules, ordinances and resolutions of City, and to perform other legally permissible and proper duties and functions of the City Council may, from time to time, assign.
b. Employee shall perform his duties to the best of his ability in accordance with the highest professional and ethical standards of the profession, comply with all general rules and regulations established by the City, and obey all State and Federal laws. c. Employee agrees to devote his productive time, ability and attention to the City's business during the term of this Agreement. Employee shall not hold secondary employment, and shall be employed exclusively by the City. The City and Employee recognize that Employee is expected to devote necessary time outside normal office hours to perform business of the City.

Since Employee's position is "exempt" under the Fair Labor Standards Act, Employee shall not receive overtime or extra compensation for work performed outside normal business hours.

2 d. Employee shall not engage in any activity, which is or may become a conflict of interest, prohibited by contract, or which may create an incompatibility of office as defined under California law. Prior to performing any services under this Agreement and annually thereafter, the Employee must complete disclosure forms as required by law.

5. Resignation and Termination
a. Resignation: Employee may resign at any time with or without cause and agrees to give City at least forty-five (45) days advance written notice of the effective date of his resignation, unless the parties mutually agree otherwise. b. Termination by City: City may terminate Employee, with or without cause, at any time, consistent with the requirements of section 802 of the City’s Charter. i. Termination without Cause: City may terminate Employee without cause by providing him with a written notice of termination. If City terminates employee without cause, City shall provide Employee forty-five (45) days written notice of such termination, unless the parties mutually agree otherwise. If the City, at the request of a majority of the City Council, requests Employee’s resignation without cause, then Employee shall be deemed terminated without cause. If the Employee is terminated without cause, then the employee is entitled to receive severance as detailed in section eight (8) below. ii. Termination for Cause: City may terminate Employee for cause by providing him with a written notice of termination. Such termination may be effective immediately.

The following are sufficient basis for termination for cause:

A. Employee engages in illegal activities;
B. Gross malfeasance;
C. Dereliction of duties;
D. Absence from employment without a good cause;
E. Failure to perform duties and responsibilities under this Agreement, as defined in the City’s Charter, or as specified in the City Clerk’s job description.

F. Resume fraud or other acts of material dishonesty;
G. Violation of the City’s Rules, including but not limited to, the City’s rule against harassment, discrimination, and retaliation; H. Use or possession of illegal drugs;
I. Engaging conduct tending to bring embarrassment or disrepute to the City;
J. Conviction of any felony or any criminal offense involving moral turpitude; or
K. An abuse of his office or position" as that term is defined in Government Code Section 53243.4.
c. Termination by Reduction of Salary or Benefits: If City at any time during this Agreement reduces the salary of City Clerk in a greater percentage than an applicable acrossthe-board reduction for other “at will” employees, as defined in the City’s Compensation and Benefits Plan for at-will employees (“Plan”), the Employee may, at his option, be deemed to be “terminated” without cause at the date of such reduction. d. Affirmation of “At-Will” status: The parties recognize and affirm that: 1) Employee is an "at-will" employee whose employment may be terminated by the City Council at any time;

3 and 2) there is no express or implied promise made to Employee for any form of continued employment as City Clerk or any other position of employment with City. This Agreement is the sole and exclusive basis for an employment relationship between Employee and the City.

6. Salary
a. Effective March ____, 2022, City agrees to pay Employee $10,423.50 in base salary per month ($125,082.00 per year) thereafter for his services. All salary payments to Employee shall be payable in installments at the same time as other employees of the City are paid and subject to the customary withholding.
b. Employee shall be entitled to receive a salary increase of 2.5% cost of living increase in July 2022.
c. City agrees to review Employee’s performance in April 2023. In the Council’s discretion, it may provide Employee an additional salary increase at that time. Thereafter, the Council will review Employee’s performance and compensation on an annual basis. The City, in its sole discretion, may increase Employee’s salary based on Employee’s performance review.

7. Supplemental Benefits
a. Economic Benefits: Except as otherwise provided in this Agreement, Employee shall receive the same economic benefits as other non-safety employees as detailed in the City’s Compensation and Benefits Plan for at-will employees, attached hereto as Exhibit A, currently and as it may be amended by the City from time to time. Employee shall not receive the salary increases provided for in the Plan, as employee will negotiate any salary increase with the Council upon receiving a performance review.
b. Deferred Compensation: In September 2022, City will evaluate Employee’s performance to determine whether providing a deferred compensation benefit for employee is appropriate based on Employee’s performance. City shall retain sole discretion in determining whether Employee will receive this deferred compensation benefit and the amount of such benefit.

8. Severance
a. As stated herein, Employee's employment with City is for no definite term or period of time. Employee shall serve at the will and pleasure of the City Council, and his employment may be terminated by the City Council at any time. Termination of Employee’s employment shall not require any showing of cause or justification, nor shall Employee be entitled to any internal administrative appeal of the decision of the City Council, beyond any process required by law. b. In the event of Employee's involuntary termination for reasons other than his resignation, death, disability, or termination with cause as provided in section 5(b)(ii) above, Employee shall be paid severance pay as provided in section 8(e) below. c. In accordance with state law, Employee shall be entitled to receive all compensation earned, but unpaid, for actual work performed and accrued unused vacation time as of the date of termination.
d. If Employee is paid severance pay as provided in section 8(e), below, payment of

4 such severance shall be conditioned upon Employee's signature on written waiver, attached hereto as Exhibit B, of any claims, grievances or causes of action against City, its employees, agents, officers, and City Council arising out of or concerning this Agreement, Employee’s employment with City, or the termination of his employment with the City. If Employee does not agree to waive such claims, grievances or causes of action, the City shall not pay Employee severance pay.
e. If Employee’s employment is terminated, and severance pay is applicable pursuant to the terms stated above, City agrees to pay Employee a lump sum payment of six (6) months of base salary, minus any required withholding. Such payment shall release City from any further obligations under this Agreement.

9. Annual Performance Evaluation
a. Annually, the City Council will define reasonable goals and performance objectives, within the scope of Section 803 of the City’s charter that the City Council determines necessary for the proper operation of the City. City Council will consider input from Employee when developing the above goals and performance objectives. b. The City Council will provide Employee with an annual review as detailed in section 6(c) above based on Employee’s performance of assigned duties as detailed in this Agreement.

10. Indemnification
The City shall defend, hold harmless and indemnify Employee against any tort, civil rights, personnel, discrimination, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of Employee's duties in accordance with the provisions of California Government Code section 825.

The City shall provide a defense in accordance with California Government Code section 995.

The City may decline to defend and/or indemnify Employee only as permitted by the California Government Code. The City may compromise and settle any such claim or suit and pay the amount of any settlement or judgment therefrom.

11. Bonding
City shall bear the full cost of any fidelity or other bonds the City Council requires of Employee under any law or ordinance or otherwise.

12. Notices
Any notices required by this Agreement shall be in writing and either given in person or by first class mail with the postage prepaid and addressed as follows:

TO CITY: City Manager
City of Watsonville
275 Main St., 4th Floor
Watsonville, CA 95076
TO EMPLOYEE: Irwin Ivan Ortiz
[Most recent address on file with human resources]

13. Abuse of Office

5 California Government Code Sections 53243, 52431.1, 53243.2 and 52431.3 are incorporated by reference as if fully set forth herein.

If this contract is terminated, any cash settlement related to the termination that Employee may receive from City shall be fully reimbursed to the City if Employee is convicted of a crime involving an abuse of his or his office or position.

14. Entire Agreement
This Agreement and its attachments and exhibits are the final expression of the complete agreement of the parties with respect to the matters specified herein and supersedes all prior oral and written understandings and agreements, and, except as prescribed herein, this Agreement cannot be modified except by written mutual agreement signed by the parties.

15. Severability, Applicable, Law, and Interpretation
In the event that any provision of this Agreement is held to be illegal or void by a court having jurisdiction over the parties, the remainder of this Agreement shall remain in full force and effect unless the parts found to be void are wholly inseparable from the remaining portion of this Agreement. Any dispute concerning this Agreement shall be governed by the laws of the State of California. The parties consent to the jurisdiction of the California courts with venue in Santa Cruz County.

16. Informed Agreement.

This Agreement has been negotiated between the City Council, on behalf of City, and IRWIN IVAN ORTIZ as Employee. City and Employee acknowledge that they have each contributed to the making of this Agreement and that in the event of a dispute over the interpretation of this Agreement, the language of the Agreement will not be construed against one party in favor of the other. City and Employee acknowledge that they have each had an adequate opportunity to consult with their own legal counsel in the negotiation and preparation of this Agreement.

6 IN WITNESS WHEREOF, the City has caused this Agreement to be signed and executed in its behalf by its Mayor and duly attested by the City Clerk. It has also been executed by the Employee.

EMPLOYEE CITY OF WATSONVILLE
____________________________ _________________________________ Irwin Ivan Ortiz, Employee Ari Parker, Mayor
ATTEST:
____________________________
Beatriz Vazquez Flores, City Clerk
APPROVED AS TO FORM:
____________________________
Samantha W. Zutler, City Attorney

1 Reso No. 202-21 (CM)
P:\COUNCIL\2021\070621\MOU Executive Team.docx
ri 7/7/2021 11:34:54 AM
RESOLUTION NO. 202-21 (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

APPROVING THE CITY OF WATSONVILLE COMPENSATION AND

BENEFITS PLAN FOR ASSISTANT CITY MANAGER, DEPARTMENT

DIRECTORS, DEPUTY CITY MANAGER, CHIEFS OF POLICE AND FIRE (EXECUTIVE TEAM)
WHEREAS, the attached Compensation and Benefits Plan is intended to establish compensation, benefits and conditions of employment for all at-will positions including the Assistant City Manager, Department Heads, Deputy City Manager, Police Chief, and Fire Chief; and
WHEREAS, these positions are exempt from the Fair Labor Standards Act (FLSA), are at-will employees, serve at the pleasure of the City Manager and can be terminated with or without notice or cause and with no rights of appeal.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:

That the City Council hereby approves and appropriates the City of Watsonville Compensation and Benefits Plan for Assistant City Manager, Department Directors, Deputy City Manager, and Chiefs of Police and Fire (Executive Team), attached hereto and incorporated herein.
********************************
DocuSign Envelope ID: 0578FEED-7834-4438-828F-400C13ED4FF1 Exhibit A

2 Reso No. 202-21 (CM)
P:\COUNCIL\2021\070621\MOU Executive Team.docx
ri 7/7/2021 11:34:54 AM
The foregoing resolution was introduced at a regular meeting of the Council of the City of Watsonville, held on the 6
th day of July , 2021, by Member Montesino , who
moved its adoption, which motion being duly seconded by Member Hurst , was upon roll call carried and the resolution adopted by the following vote:

AYES: COUNCIL MEMBERS: Estrada, García, González, Hurst, Montesino, Parker, Dutra
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
____________________________
Jimmy Dutra, Mayor
ATTEST:
_____________________________
City Clerk
_______________________
Date
APPROVED AS TO FORM:
_____________________________
City Attorney
************************************
I, Beatriz Vázquez Flores, City Clerk of the City of Watsonville, do hereby certify that the foregoing Resolution No. 202-21 (CM) was duly and regularly passed and adopted by the Watsonville City Council at a meeting thereof held on the 6 th day of July,
2021, and that the foregoing is a full, true and correct copy of said Resolution. ________________________________
Beatriz Vázquez Flores, City Clerk
Date__________________________
DocuSign Envelope ID: 0578FEED-7834-4438-828F-400C13ED4FF1 7/8/2021 | 5:53 PM PDT
7/8/2021 | 5:53 PM PDT
l(DocuSigned by:

L~
r DocuSigned by:

L<i::~
Exhibit A

CITY OF WATSONVILLE

COMEPENSATION AND BENEFITS PLAN

ASSISTANT CITY MANAGER, DEPARTMENT DIRECTORS, DEPUTY CITY

MANAGER, CHIEFS OF POLICE AND FIRE
EFFECTIVE FIRST FULL PAY PERIOD ON OR AFTER JULY 1, 2021 Purpose and Intent: On May 14, 2019, the City Council adopted a resolution No. 65-19 (CM) extracting the at-will, general service positions from the Management Bargaining Unit. This Compensation and Benefits Plan (Plan) is intended to establish compensation, benefits and conditions of employment for all at-will positions including the Assistant City Manager, Department Heads, Deputy City Manager, Police Chief, and Fire Chief. These positions are exempt from the Fair Labor Standards Act (FLSA), are at-will employees, serve at the pleasure of the City Manager and can be terminated with or without notice or cause and with no rights of appeal.

A. SALARY SCHEDULE
1) Effective on the first full pay period on or after July 1, 2021, salaries shall be increased by 2.5%.

Effective on the first full pay period on or after July 1, 2021, the Fire Chief salary shall be increased by 3%.

The Public Works and Utilities Director salary shall be made equal to the Police Chief salary. The Parks and Community Services Director salary shall be made equal to the Administrative Services Director salary.
2) Effective on the first full pay period on or after July 1, 2022, salaries shall be increased by 2.5%.

Effective on the first full pay period on or after July 1, 2022, the Fire Chief salary shall be increased by 3%.
3) One Time Pandemic Relief
On the first full pay period after City Council approval and unit ratification, all positions under this Compensation and Benefits Plan shall receive a $1000 one-time payment in recognition of the unique workplace challenges brought upon by the pandemic. For employees hired afterApril 1, 2020 this one-time payment will be pro-rated by months of service
Exhibit A

Executive Team Compensation Plan 21-23 Final.docx Page 2 of 9 7/1/2021 6:09 PM
B. RETIREMENT
Retirement Contribution

1. Miscellaneous Employees Retirement Plan. The City provides the California Public Employees’ Retirement System (CalPERS) 2% @ 55 retirement program plan for Miscellaneous employees hired before July 1, 2011, including CalPERS Section 20862.8 - Credit for Unused Sick Leave. Employees shall pay the full 7% of the employee share.

2. Miscellaneous Employees Two-Tier Retirement Plan. The City shall provide the CalPERS 2% @ 60 retirement program plan for Miscellaneous employees hired on or after July 1, 2011 or upon effective date of CalPERS contract amendment including CalPERS Section 20862.8 - Credit for Unused Sick Leave. Final compensation for employees hired on or after July 1, 2011 will be based on the average of the highest wages earned in any consecutive 3-year period. Employees shall pay the full 7% of the employee share.

3. Miscellaneous Employees PEPRA Tier Retirement Plan. Pursuant to California Public Employees' Pension Reform Act of 2013 (PEPRA), the City shall provide the CalPERS 2% at 62 retirement plan for Miscellaneous employees hired on or after January 1, 2013 or as soon as administratively possible. Final compensation will be based on the average of the highest wages earned in any consecutive 3-year period. a. Miscellaneous Employees PEPRA Retirement Contribution.

Pursuant to California Public Employees' Pension Reform Act of 2013 (PEPRA), Miscellaneous employees hired on or after January 1, 2013 shall pay at least 50% of normal cost of pension or what is determined by CalPERS to be the employee contribution rate.

4. Public Safety Employees Retirement Plan. Public Safety members of the Management Unit hired prior to July 1, 2011 shall be subject to the same CalPERS retirement program plan provisions outlined in the appropriate public safety bargaining unit MOU.
a. Public Safety Employees Two-Tier Retirement Plan. Public Safety members of the Management Unit hired on or after July 1, 2011 shall be subject to the same Two-Tier CalPERS retirement program plan provisions outlined in the appropriate public safety bargaining unit MOU. Employees shall pay the full nine percent (9%) of the employee share effective on or after July 1, 2013. b. Public Safety Employees PEPRA Tier Retirement Plan. Pursuant to California Public Employees' Pension Reform Act of 2013 (PEPRA), the City shall provide the CalPERS 2.7% at 57 retirement plan for Public Safety employees hired on or after January 1, 2013 or as soon as administratively possible. Final compensation will be based on the average of the highest wages earned in any consecutive 3-year period. Employee will pay the full nine percent Exhibit A

Executive Team Compensation Plan 21-23 Final Revised.docx

7/1/2021 6:09 PM
(9%) of the employee share effective the first full pay period on or after July 1, 2013.
i. Public Safety Employees PEPRA Retirement Contribution.

Pursuant to California Public Employees' Pension Reform Act of 2013 (PEPRA), Public Safety employees hired on or after January 1, 2013 shall pay at least 50% of normal cost of pension or what is determined by CalPERS to be the employee contribution rate.

5. Retirement Tax Deferment. The City shall maintain the IRS Sec. 414(h)(2) provision allowing employees to make employee retirement contributions with pretax (tax deferred) dollars.

C. ADMINISTRATIVE LEAVE

1. Employees shall receive Administrative Leave of 13.5 days per year beginning the first full pay period on or after July 1, 2019. Unused Administrative Leave as of June 30 shall be paid off at the regular rate of pay the succeeding month.

2. Employer shall pro-rate Administrative Leave up to a maximum of 8.66 hours per month for new hires and for every month during the fiscal year for which an employee was employed before termination of City service.

D. OVERTIME PAY-DISASTER RESPONSE
Not withstanding that employees are exempt from the FLSA, upon issuance of a Proclamation of a local emergency by the City Council or the Director of Emergency Services pursuant to Chapter 2 of Title 4 of the Municipal Code, Unit employees are eligible for overtime compensation. Such overtime eligibility shall cease when the City Manager determines that the disaster response has ended.

E. AUTO

1.5.2 Mileage reimbursement for Unit employees shall be at the Federal IRS allowable reimbursement rate.

Exhibit A

Executive Team Compensation Plan 21-23 Final.docx Page 4 of 9 7/1/2021 6:09 PM
F. At-Will Status and Severance Pay

1. As provided in Section 1001 of the City Charter, the City Manager, City Clerk, City Attorney, and each Department head are in the general service (i.e. at-will). Section 800 of the City Charter provides that the City Council shall establish by ordinance, not inconsistent with the Charter for the organization, conduct and operation of several offices, departments, and other agencies of the City. Section 800 goes on to provide that the City Council may also by ordinance establish additional departments and/or alter or abolish existing departments and/or assign and reassign duties and responsibilities to departments.

At-will status shall mean the right to terminate the employment relationship for any reason, with or without cause, with or without notice, without further obligation or liability except for the severance pay The City need not state reasons for release of such identified at-will or general service employees, and such employees have no right or expectation to have release or post-release proceedings, hearings, or appeals, except persons subject to the Public Safety Officer Procedural Bill of Rights (Govt.

Code Section 3300 et seq). Specifically, the Chief of Police shall be afforded the protections of subdivision (c) of Section 3304 of the Government Code.

As of the date of this Compensation Plan, the following positions are at-will and subject to general service. These employees have no right to return to employment in a former position or a right to employment in a former position, or a right to employment in any other position within the City by reason of their employment status:

Community Development Director
Administrative Services Director
Library Director
Parks and Community Services Director
Public Works and Utilities Director
Information Technology Director
Airport Director
Assistant City Manager
Deputy City Manager
Fire Chief
Police Chief
No statement, whether oral or written, or conduct may change such status, except a formal resolution of the Council resolved at a duly held meeting adopting a change of the terms of this MOU. Apart from the Council at a duly noticed meeting no person employed by the City has the authority to modify the at-will or general service status of such of head of department employees.

Exhibit A

Executive Team Compensation Plan 21-23 Final.docx Page 5 of 9 7/1/2021 6:09 PM

2. Such at-will general service employees shall be entitled to receive three months severance pay if involuntarily terminated by the City. Excluded from the severance pay provision are terminations for illegal activities, gross malfeasance or dereliction of duties or absence from employment without a good cause.

G. Special Provisions-Public Safety
Uniform Allowance Uniform allowance shall be -Seven Hundred ($700.00) Dollars per year for public safety members of the Management Unit for the purchase and maintenance of required uniform items and footwear.

1.8 Bilingual Pay

1.8.1 Eligibility for Level I Written and/or Conversational Premium Pay:

In order to receive Level I Written and/or Conversational Bilingual Premium Pay employees proficient in the Spanish language must meet the following criteria:
(a) The employee must pass the City’s bilingual competency test as administered by the Human Resources Department on an annual basis to maintain the premium pay. The City Manager may waive the annual testing requirement for individuals upon
recommendation of the Department Head. Annual basis refers to fiscal year; and
(b) The employee is required to serve as an oral interpreter and provide basic written translations on a regular and on-going basis, as certified by the Department Head

1.8.2 Level I Written and Conversational Premium Pay:
(a) For employees hired after November 1, 2006 the City shall pay a stipend of $250/month, pro-rated for part time employees. (b) Employees eligible for Level I Premium Pay before November 1, 2006 shall receive premium pay equal to five percent (5%) of his/her base salary as of November 1, 2006, with the premium rounded to the nearest dollar, and exclusive of any retroactive wage increases provided under this agreement. A list of each employee’s premium pay under this section will be provided to the Unit. Employees who receive the five percent premium, above, may irrevocably opt into the $250/month stipend specified in (a) above.

Exhibit A

Executive Team Compensation Plan 21-23 Final.docx Page 6 of 9 7/1/2021 6:09 PM

1.8.3 Level I Conversational Only Premium Pay:
(a) For employees who become eligible and receive Level I Bilingual Conversational Premium Pay on or after July 1, 2013 the City shall pay a stipend of $75/month, pro-rated for part-time, regular employees.
(b) Employees currently receiving Level I Written and
Conversational Bilingual Premium Pay pursuant to Section 1.8.2 shall continue to receive the premium pay.

1.8.4 Level II Bilingual Translator Premium Pay:

In addition to the Level I stipend for Written and Conversational bilingual competency the City will designate a limited number of staff as Level II Bilingual Translators. Such Level II Bilingual Translators shall perform written translations that are viewed by a large audience of City residents (i.e. City mailers, City Council minutes, inserts in City utility bills, etc.). Level II Bilingual Translators must meet all requirements under Level I prior to applying for Level II consideration. (a) Qualified Level II Translators shall receive the Level I stipend as outlined in 1.8.2 (b) and an additional $100/month.
(b) To evidence competency as a Level II Translator, employees must pass a skills-based test administered by the City to demonstrate competency in written translation.

2.0 INSURANCE

2.1 Health Insurance

2.1.1 The City shall maintain in effect current health insurance coverages for all full-time Unit employees in the competitive and general services.

2.1.2 The City shall contribute the following monthly amounts towards health insurance coverage for full time employees defined above in Section

2.1.1 Per employee $1,189.78
Exhibit A

Executive Team Compensation Plan 21-23 Final.docx Page 7 of 9 7/1/2021 6:09 PM

2.1.3 If plan contribution increases are necessary for the 2018 and 2019 plan years, the City and Employees contribution shall be shared equally, provided that increased City and Employee contributions do not exceed $45/month per employee. Increases above $45/month cap are subject to meet and confer process
Should insurance plan changes result in City costs below current costs, the intent of the parties is that the savings shall benefit both the bargaining unit and City equally.

2.1.4 Regular part-time employees will be fully covered at the employee only level at the City's expense. The employee shall have the option of covering additional dependents at their own expense. This shall be determined by utilizing the three tier rate which the City has established for the COBRA and other purposes (less any surcharges). To cover one (1) dependent, the employee will pay the difference between the employee only rate and the employee plus one rate. To cover the family, the employee will pay the difference between the employee only rate and the full family rate under the three tiers.

The decision to cover family members shall be made during a one time election when this provision becomes effective. Thereafter, employees may only add or delete family members in accordance with plan rules.

2.1.5 For any member of the Unit who uses all leave due to illness or injury, which is not a Workers' Compensation claim, the City shall maintain the health insurance coverage and pay the premium on behalf of the member for an additional thirty (30) days.

2.1.6 The City and the employees agree to jointly participate in the City Employees Health Committee (CEHC) as outlined in the bylaws dated July 1992.

2.3 Long Term Disability Insurance
The City shall continue paying the Long Term Disability Insurance premium

2.4 Life Insurance
Life insurance coverage is Fifty ($50,000) Thousand Dollars for all Unit employees and Two Thousand ($2,000) Dollars per dependents.

3.0 LEAVES

3.1 Vacation Leave
1st year 12 days
Exhibit A

Executive Team Compensation Plan 21-23 Final.docx Page 8 of 9 7/1/2021 6:09 PM
2nd year 13 days
3rd year 14 days
4th year 15 days
5 - 10 years 16 days
11+ years 20 days

3.1.1 3.1.1 Employees with more than two (2) times their annual vacation accrual on the books shall bring their accrual within the accrual maximum by December 31, 2017. After one year of service, each employee will be expected to take during each year the vacation to which he/she is entitled. After December 31, 2017, when an employee’s vacation balance reaches two times their annual vacation accrual, the employee will not accrue vacation until the vacation balance is below the accrual maximum. If an employee is denied requested vacation due to the needs of the City, the department must send a memo explaining the situation for consideration by the City Manager prior to the employee reaching the maximum accrual. Only the City Manager may grant temporary exceptions to this section in extraordinary circumstances.

3.2 Holidays
There shall be fourteen (14) holidays per year as specified below:

January 1 (New Year's Day)
January 21 (Martin Luther King Day)
Lincoln's Birthday (Floating holiday)
Third Monday in February (Washington's Birthday)
March 31 (Cesar Chavez Day)
Last Monday in May (Memorial Day)
July Fourth
First Monday in September (Labor Day)
November 11 (Veterans Day)
Thanksgiving Day
Friday following Thanksgiving (in lieu of Election Day) December 24 (in lieu of Admission Day)
December 25 (Christmas Day)
December 31 (in lieu of Columbus Day)
Recognized holidays which fall on Saturday shall be observed on the preceding scheduled work day. Recognized holidays which fall on a Sunday shall be observed on the following scheduled work day.

There will be one (1) floating vacation day credited to each employee on Lincoln's Birthday, which may be taken pursuant to the City's leave regulations.

Exhibit A

Executive Team Compensation Plan 21-23 Final.docx Page 9 of 9 7/1/2021 6:09 PM

3.3 Sick Leave

3.3.1 Each employee shall accrue sick leave in the amount of one and one quarter (1-1/4) days per month of service (10 hours). Sick leave is payable per City Personnel Rules and Regulations.

The maximum accumulation of unused sick leave is 125 days (1,000 hours). Sick leave accumulated in any calendar year in excess of 125 days (1,000 hours) shall be paid at the rate of 50% of such excess on the first payroll of December. The balance of such unused sick leave is lost and the sick leave accrual is reduced to 125 days (1,000 hours).

3.3.2 Unused sick leave may not be used to delay the date of an employee's disability retirement.

Exhibit A

SF #4882-5153-0262 v1

SEPARATION AGREEMENT

1. PARTIES
This Separation Agreement (hereinafter referred to as the “AGREEMENT”) is entered into by and between the City of Watsonville, a California municipal corporation and general law city (hereinafter referred to as “CITY”), and Irwin Ivan Ortiz, an individual (hereinafter referred to as “EMPLOYEE”).

2. RECITALS

2.1. EMPLOYEE was hired by CITY as its permanent City Clerk, to serve at the pleasure of the City Council, pursuant to an Employment Agreement for the Position of City Clerk made and entered into March ____, 2022 (“EMPLOYMENT AGREEMENT”).

2.2. CITY and EMPLOYEE desire that EMPLOYEE resign and enter into this AGREEMENT whereby EMPLOYEE receives severance compensation in exchange for executing this AGREEMENT including a general release and waiver of any and all claims that EMPLOYEE may have against CITY, including but not limited to its elected and non-elected officials, employees, attorneys, and agents. Accordingly, the parties hereto intend by this AGREEMENT to mutually conclude any and all employment relationships between CITY and EMPLOYEE by means of EMPLOYEE’s voluntary separation as of ______, ____. This AGREEMENT sets forth the full and complete terms and conditions concluding EMPLOYEE’s employment relationship with the CITY and any obligations related thereto, including any provided under the EMPLOYMENT AGREEMENT.

2.3. In accordance with this AGREEMENT and with applicable state and federal laws, EMPLOYEE acknowledges that EMPLOYEE has been advised of EMPLOYEE’s postemployment rights, including but not limited to, EMPLOYEE’s rights under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), the Employee Retirement Income Security Act of 1974 (“ERISA”), and the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”).

3. CONSIDERATION

3.1. EMPLOYEE shall receive payment at the time of his voluntary separation all earned salary, accrued fringe benefits as detailed in the EMPLOYMENT AGREEMENT, and/or all other wage compensation/benefits owed to EMPLOYEE upon separation of employment, as required by law or the EMPLOYMENT AGREEMENT or any other agreement with CITY.

3.2. In exchange for the waivers and releases set forth herein, CITY shall also cause to be paid to EMPLOYEE an additional compensatory payment by means of severance, settlement and release in the form of a lump sum amount of Exhibit B

SF #4882-5153-0262 v1
_________________ and __ cents ($______.00), as set forth in the EMPLOYMENT AGREEMENT in the form of a check made payable to EMPLOYEE to be mailed to EMPLOYEE at EMPLOYEE’s home address via certified mail return receipt requested within thirty (30) business days after the EFFECTIVE DATE (as defined below) of this AGREEMENT.

3.3. In exchange for the severance payment provided for herein, EMPLOYEE, and on behalf of EMPLOYEE’s spouse, heirs, representatives, successors, and assigns, hereby releases, acquits, and forever discharges CITY, and each of its predecessors, successors, assigns, officials, employees, representatives, agents, insurers, attorneys, and all persons and entities acting by, through, under, or in concert with any of them, and each of them (hereinafter referred to as “CITY PARTIES”), from any and all claims, charges, complaints, contracts, understandings, liabilities, obligations, promises, benefits, agreements, controversies, costs, losses, debts, expenses, damages, actions, causes of action, suits, rights, and demands of any nature whatsoever, known or unknown, suspected or unsuspected, which EMPLOYEE now has or may acquire in the future, or which EMPLOYEE ever had, relating to or arising out of any act, omission, occurrence, condition, event, transaction, or thing which was done, omitted to be done, occurred or was in effect at any time from the beginning of time up to and including _______ __, ____ (hereinafter referred to collectively as “CLAIMS”), without regard to whether such CLAIMS arise under the federal, state, or local constitutions, statutes, rules or regulations, or the common law. EMPLOYEE expressly acknowledges that the CLAIMS forever barred by this AGREEMENT specifically include, but are not limited to, claims based upon any alleged breach of THE CONTRACT or any other agreement of employment, any demand for wages, overtime or benefits, any claims of violation of the provisions of ERISA, COBRA or HIPAA, any alleged breach of any duty arising out of contract or tort, any alleged wrongful termination in violation of public policy, any alleged breach of any express or implied contract for continued employment, any alleged employment discrimination or unlawful discriminatory act, or any claim or cause of action including, but not limited to, any and all claims whether arising under any federal, state or local law prohibiting breach of employment contract, wrongful termination, or employment discrimination based upon age, race, color, sex, religion, handicap or disability, national origin or any other protected category or characteristic, and any and all rights or claims arising under the California Labor Code or Industrial Welfare Commission Wage Orders, the Federal Fair Labor Standards Act, the California Fair Employment and Housing Act, California Government Code sections12900 et seq., the Americans With Disabilities Act, Title VII of the Civil Rights Act of 1964, the Public Safety Officers Procedural Bill of Right Act, and any other federal, state, or local human rights, civil rights, or employment discrimination or employee rights statute, rule, or regulation.

4. SPECIFIC ACKNOWLEDGMENT OF WAIVER OF CLAIMS UNDER ADEA

AND OWBPA
The Age Discrimination in Employment Act of 1967 (hereinafter referred to as the “ADEA”) makes it illegal for an employer to discharge any individual or otherwise Exhibit B

SF #4882-5153-0262 v1
discriminate with respect to the nature and privileges of an individual’s employment on the basis that the individual is age forty (40) or older. The Older Workers Benefit Protection Act (hereinafter referred to as the “OWBPA,” 29 U.S.C. § 626, et seq., Pub L 101-433, 104 Stat. 978 (1990)) further augments the ADEA and prohibits the waiver of any right or claim under the ADEA, unless the waiver is knowing and voluntary. By entering into this AGREEMENT, EMPLOYEE acknowledges that she knowingly and voluntarily, for just compensation in addition to anything of value to which EMPLOYEE was already entitled, waives and releases any rights she may have under the ADEA and/or OWBPA. EMPLOYEE further acknowledges that she has been advised and understands, pursuant to the provisions of the ADEA and OWBPA, that:
(a) This waiver/release is written in a manner understood by EMPLOYEE; (b) EMPLOYEE is aware of, and/or has been advised of, his rights under the ADEA and OWBPA, and of the legal significance of his waiver of any possible claims she currently may have under the ADEA, OWBPA and/or similar age discrimination laws;
(c) EMPLOYEE is entitled to a reasonable time of at least twenty-one (21) days within which to review and consider this AGREEMENT and the waiver and release of any rights she may have under the ADEA, the OWBPA and similar age discrimination laws; but may, in the exercise of his own discretion, sign or reject this AGREEMENT at any time before the expiration of the twenty-one (21) days;
(d) The waivers and releases set forth in this AGREEMENT shall not apply to any rights or claims that may arise under the ADEA and/or OWBPA after the EFFECTIVE DATE of this AGREEMENT;
(e) EMPLOYEE has been advised by this writing that she should consult with an attorney prior to executing this AGREEMENT;
(f) EMPLOYEE has discussed this waiver and release with, and been advised with respect thereto, by her counsel of choice, and that she does not need any additional time within which to review and consider this AGREEMENT;
(g) EMPLOYEE has seven (7) days following his execution of this AGREEMENT to revoke the AGREEMENT;
(h) Notice of revocation within the seven (7) day revocation period must be provided, in writing, to THE CITY pursuant to Paragraph 8.7 herein, and must state, “I hereby revoke my acceptance of our Agreement of Severance and General Release;” and
Exhibit B

SF #4882-5153-0262 v1
(i) This AGREEMENT shall not be effective until all parties have signed the AGREEMENT and ten (10) days have passed since EMPLOYEE’s execution (“EFFECTIVE DATE”).

5. UNKNOWN CLAIMS
In relation to the release provisions of Paragraphs 3 and 4 above, EMPLOYEE understands that California Civil Code section 1542 reads as follows: “General Release- -Claims Extinguished”:
“A general release does not extend to claims that the
creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.” EMPLOYEE hereby waives the protection of California Civil Code section 1542.

6. WAIVER OF ADDITIONAL CLAIMS
EMPLOYEE hereby waives any provisions of state or federal law that might require a more detailed specification of the claims being released pursuant to the provisions of Paragraphs 3, 4, and 5 above.

7. REPRESENTATIONS AND WARRANTIES
Each of the parties to this AGREEMENT represents and warrants to, and agrees with, each other party as follows:

7.1. Advice of Counsel: The parties hereto have received independent legal advice from their respective attorneys concerning the advisability of entering into and executing this AGREEMENT or have been given the opportunity to obtain such advice.

The parties acknowledge that they have been represented by counsel of their own choice in the negotiation of this AGREEMENT, that they have read this AGREEMENT; that they have had this AGREEMENT fully explained to them by such counsel, or have had such opportunity to do so and that they are fully aware of the contents of this AGREEMENT and of its legal effect.

7.2. No Fraud in Inducement: No party (nor any officer, agent, employee, representative, or attorney of or for any party) has made any statement or representation or failed to make any statement or representation to any other party regarding any fact relied upon in entering into this AGREEMENT, and neither party relies upon any statement, representation, omission or promise of any other party in executing this AGREEMENT, or in making the settlement provided for herein, except as expressly stated in this AGREEMENT.

Exhibit B

SF #4882-5153-0262 v1

7.3. Independent Investigation: Each party to this AGREEMENT has made such investigation of the facts pertaining to this settlement and this AGREEMENT and all the matters pertaining thereto, as it deems necessary.

7.4. Mistake Waived: In entering into this AGREEMENT, each party assumes the risk of any misrepresentation, concealment or mistake. If any party should subsequently discover that any fact relied upon by it in entering into this AGREEMENT was untrue, or that any fact was concealed from it, or that its understanding of the facts or of the law was incorrect, such party shall not be entitled to any relief in connection therewith, including without limitation on the generality of the foregoing any alleged right or claim to set aside or rescind this AGREEMENT. This AGREEMENT is intended to be, and is, final and binding between the parties, regardless of any claims of misrepresentation, promise made without the intent to perform, concealment of fact, mistake of fact or law, or any other circumstance whatsoever.

7.5. Later Discovery: The parties are aware that they may hereafter discover claims or facts in addition to or different from those they now know or believe to be true with respect to the matters related herein. Nevertheless, it is the intention of the parties that EMPLOYEE fully, finally and forever settle and release all such matters, and all claims relative thereto, which do now exist, may exist or have previously existed against CITY or CITY PARTIES. In furtherance of such intention, the releases given here shall be, and remain, in effect as full and complete releases of all such matters, notwithstanding the discovery or existence of any additional or different claims or facts relative thereto.

7.6. Indemnification: EMPLOYEE agrees to indemnify and hold harmless CITY or CITY PARTIES from, and against, any and all claims, damages, or liabilities sustained by them as a direct result of the violation or breach of the covenants, warranties, and representations undertaken pursuant to the provisions of this AGREEMENT. EMPLOYEE understands and agrees that she shall be exclusively liable for the payment of all taxes for which she is responsible, if any, as a result of his receipt of the consideration referred to in Paragraph 3 of this AGREEMENT. In addition, EMPLOYEE agrees fully to indemnify and hold the CITY PARTIES harmless for payment of tax obligations as may be required by any federal, state or local taxing authority, at any time, as a result of the payment of the consideration set forth in Paragraph 3 of this AGREEMENT.

7.7. Future Cooperation and Consultation fees: EMPLOYEE shall execute all such further and additional documents as shall be reasonable, convenient, necessary or desirable to carry out the provisions of this AGREEMENT. EMPLOYEE shall provide CITY with consultation services (including deposition or trial testimony) in any litigation involving CITY which is reasonably related to acts or occurrences transpiring during his employment. Said services shall be provided as needed to CITY at a rate of $100.00 per hour.

7.8. Return of Confidential Information and Property: Prior to the separation date, EMPLOYEE shall submit a written inventory of, and return to the City Clerk, all Exhibit B

SF #4882-5153-0262 v1
City keys, equipment, computer identification cards or codes, and other equipment or materials or confidential documents provided to or obtained by EMPLOYEE during the course of his employment with CITY.

7.9. No Pending Claims and/or Actions: EMPLOYEE represents that she has not filed any complaints or charges against CITY or CITY PARTIES with any local, state or federal agency or court; that she will not do so at any time hereafter for any claim arising up to and including the EFFECTIVE DATE of this AGREEMENT; and that if any such agency or court assumes jurisdiction of any such complaint or charge against CITY or CITY PARTIES on behalf of EMPLOYEE, whenever or where ever filed, she will request such agency or court to withdraw from the matter forthwith.

7.10. Ownership of Claims: EMPLOYEE represents and warrants as a material term of this AGREEMENT that EMPLOYEE has not heretofore assigned, transferred, released or granted, or purported to assign, transfer, release or grant, any of the CLAIMS disposed of by this AGREEMENT. In executing this AGREEMENT, EMPLOYEE further warrants and represents that none of the CLAIMS released by EMPLOYEE thereunder will in the future be assigned, conveyed, or transferred in any fashion to any other person and/or entity.

7.11. Enforcement Fees and Costs: Should any legal action be required to enforce the terms of this AGREEMENT, the prevailing party shall be entitled to reasonable attorneys’ fees and costs in addition to any other relief to which that party may be entitled.

7.12. Authority: Each party represents to the other that it has the right to enter into this AGREEMENT, and that it is not violating the terms or conditions of any other AGREEMENT to which they are a party or by which they are bound by entering into this AGREEMENT. The parties represent that they will obtain all necessary approvals to execute this AGREEMENT. It is further represented and agreed that the individuals signing this AGREEMENT on behalf of the respective parties have actual authority to execute this AGREEMENT and, by doing so, bind the party on whose behalf this AGREEMENT has been signed.

8. MISCELLANEOUS

8.1. No Admission: Nothing contained herein shall be construed as an admission by CITY of any liability of any kind. THE CITY denies any liability in connection with any claim and intends hereby solely to avoid potential claims and/or litigation and buy its peace.

8.2. Governing Law: This AGREEMENT has been executed and delivered within the State of California, and the rights and obligations of the parties shall be construed and enforced in accordance with, and governed by, the laws of the State of California.

Exhibit B

SF #4882-5153-0262 v1

8.3. Full Integration: This AGREEMENT is the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous oral and written agreements and discussions. This AGREEMENT may be amended only by a further agreement in writing, signed by the parties hereto.

8.4. Joint Drafting: Each party agrees that it has cooperated in the drafting and preparation of this AGREEMENT. Hence, in any construction to be made of this AGREEMENT, the parties agree that same shall not be construed against any party.

8.5. Severability: In the event that any term, covenant, condition, provision or agreement contained in this AGREEMENT is held to be invalid or void by any court of competent jurisdiction, the invalidity of any such term, covenant, condition, provision or agreement shall in no way affect any other term, covenant, condition, provision or agreement and the remainder of this AGREEMENT shall still be in full force and effect.

8.6. Counterparts: This AGREEMENT may be executed in counterparts, and when each party has signed and delivered at least one such counterpart, each counterpart shall be deemed an original, and, when taken together with other signed counterparts, shall constitute one AGREEMENT, which shall be binding upon and effective as to all parties.

8.7. Notice: Any and all notices given to any party under this AGREEMENT shall be given as provided in this paragraph. All notices given to either party shall be made by certified or registered United States mail, or personal delivery, at the noticing party’s discretion, and addressed to the parties as set forth below. Notices shall be deemed, for all purposes, to have been given on the date of personal service or three (3) consecutive calendar days following deposit of the same in the United States mail.

As to EMPLOYEE: As to THE CITY:

At EMPLOYEE’s home address on file
with THE CITY.

City Manager
City of Watsonville
275 Main St., 4th Floor
Watsonville, California 95076
IN WITNESS WHEREOF, THE CITY has caused this AGREEMENT to be signed and executed on its behalf by its Mayor and duly attested by its City Clerk or deputy City Clerk, EMPLOYEE has signed and executed this Agreement, and the attorneys for CITY and EMPLOYEE, if any, have approved as to form as of the dates written below.

Dated: EMPLOYEE
By:

Irwin Ivan Ortiz
Exhibit B

SF #4882-5153-0262 v1
Dated: CITY
By:
, Mayor
ATTEST:

By:
, City Clerk

APPROVED AS TO FORM
[Name of Law Firm]
By:
, City Attorney
Exhibit B