Agenda packet — Watsonville City Council, June 13, 2023 (part 2 of 5)

Executive Team Compensation Plan 21-23 Final Revised.docx

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(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

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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

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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

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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

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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

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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

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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

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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

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_________________ 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

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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

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(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

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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

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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

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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

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Dated: CITY
By:
, Mayor
ATTEST:

By:
, City Clerk

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

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1 Reference: Reso No. _____ (CM)
Meeting Date: 061323
RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

APPROVING FIRST AMENDMENT TO EMPLOYMENT CONTRACT

BETWEEN THE CITY OF WATSONVILLE AND RENE MENDEZ FOR

EMPLOYMENT AS CITY MANAGER

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

1. This action is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is not a “project” that may cause a direct, or 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. Additionally, even if a “project,” the action would be 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 the First Amendment to Employment Contract between the City of Watsonville and Rene Mendez for employment as City Manager of the City of Watsonville, which Contract is attached hereto and incorporated herein by this reference, is hereby approved.

3. That the Mayor be hereby authorized and directed to execute the First Amendment to the Employment Contract for and on behalf of the City of Watsonville. ********************************

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4867-0467-7993 v1 Page 1 of 2
FIRST AMENDMENT TO THE AT-WILL EMPLOYMENT AGREEMENT OF RENE L.

MENDEZ
This Amendment is entered into by and between the CITY OF WATSONVILLE, a municipal corporation, hereafter referred to as “City,” and Rene L. Mendez, hereafter referred to as “Employee,” and collectively as “Parties.”

RECITALS
WHEREAS, on April 12, 2022, the City Council adopted Resolution No. 54-22 (CM), appointing Rene L. Mendez as City Manager, and approving an at-will employment agreement (“Agreement”) between the City and Mendez for employment of Mendez as City Manager; and
WHEREAS, the Parties now wish to amend the Agreement.

NOW THEREFORE, the Parties agree that the At-Will Employment Agreement of Rene L. Mendez shall amended as follows:

1. Section 7. Supplemental Benefits. Section 7.c. is amended to read as follows:
c. Housing Allowance: Upon providing proof of residency, as explained further below, City will pay to Employee $2,000 per month for six (6) months for a maximum amount of $12,000. This Housing Allowance shall be contingent upon Employee establishing residency in the City of Watsonville’s geographic boundaries by July 1, 2024.

2. Section 7. Supplemental Benefits. The following provision shall be added to Section 7.
f. Upon establishing residency within the geographic boundaries of Watsonville, the City will provide up to $15,000 for moving expenses upon submission of receipts of applicable expenses to the City by Employee.

3. Section 9. Annual Performance Evaluation. Section 9.b. is amended to read as follows:
b. The City Council will provide Employee with a review, in September of each year, as detailed in section 6(c) above based on Employee’s performance of assigned duties as detailed in this Agreement.

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4867-0467-7993 v1 Page 2 of 2
All other terms and conditions of the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the At-Will Employment Agreement of Rene L. Mendez on the day and year noted above.

CITY OF WATSONVILLE
By:______________________________
Eduardo Montesino, Mayor
By:___________________________
Rene L. Mendez, City Manager
ATTEST:

Irwin Ivan Ortiz, City Clerk
APPROVED AS TO FORM:
_________________________________
Samantha W. Zutler, City Attorney

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Reso No. 59-22 (CM)
Meeting Date: April 12, 2022
1 RESOLUTION NO. 59-22 (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

APPOINTING RENE MENDEZ AS CITY MANAGER AND APPROVING
CONTRACT FOR EMPLOYMENT AS CITY MANAGER; AND

AUTHORIZING THE MAYOR TO EXECUTE THE EMPLOYMENT

CONTRACT

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

1. That Rene Mendez be and is hereby appointed City Manager, and he shall have all the powers and authority granted the City Manager in Sections 703 and 704 of the Charter of the City of Watsonville.

2. That the Contract between the City of Watsonville and Rene Mendez for employment as City Manager of the City of Watsonville, a copy of which Contract is attached hereto and incorporated herein by this reference, is fair and equitable and is hereby approved.

3. That the Mayor be and is hereby authorized and directed to execute the Contract for and on behalf of the City of Watsonville.

BE IT FURTHER RESOLVED that this appointment shall become effective July 1, 2022.
*********************************
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Reso No. 59-22 (CM)
Meeting Date: April 12, 2022
2 The foregoing resolution was introduced at a regular meeting of the Council of the City of Watsonville, held on the 12th day of April , 2022, by Mayor Pro Tempore Montesino , who moved its adoption, which motion being duly seconded by Member García , was upon roll call carried and the resolution adopted by the following vote:

AYES: COUNCIL MEMBERS: Dutra, Estrada, García, Hurst,
Montesino, Quiroz-Carter, Parker
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
____________________________
Ari Parker, Mayor
ATTEST:
_____________________________
City Clerk
_______________________
Date
APPROVED AS TO FORM:
_____________________________
City Attorney
************************************
I, Irwin I. Ortiz, City Clerk of the City of Watsonville, do hereby certify that the foregoing Resolution No. 59-22 (CM) was duly and regularly passed and adopted by the Watsonville City Council at a meeting thereof held on the 12th day of April , 2022, and that the foregoing is a full, true and correct copy of said Resolution. ________________________________
Irwin I. Ortiz, City Clerk
Date__________________________
DocuSign Envelope ID: 5D83790A-99E1-441D-A855-A2EF60496C9F 4/19/2022 | 8:24 AM PDT
4/19/2022 | 8:24 AM PDT
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1 AT-WILL EMPLOYMENT AGREEMENT
OF
RENE L. MENDEZ
This agreement is between the CITY OF WATSONVILLE ("City"), a municipal corporation organized in the State of California, and RENE L. MENDEZ ("Employee") (“Agreement”). City and Employee shall be collectively referred to as “Parties” or individually referred to as “Party”, “Employee” or “City”.

RECITALS
WHEREAS, Employee has been gainfully employed as City Manager of the City of Gonzales, California, and Executive Director/Director of the Gonzales Redevelopment Agency/Successors Agency to the Gonzales Redevelopment Agency since 2005; and WHEREAS, the City has completed a recruitment process and has determined that the City desires to offer the position of City Manager to Employee; and WHEREAS, Employee has indicated he desires to serve in the capacity of City Manager; and
WHEREAS, In accordance with the terms of the Agreement, City and Employee have agreed to memorialize their intent and the terms of employment by this Agreement.

NOW THEREFORE, it is hereby agreed by City and Employee as follows:

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

2. Appointment as City Manager and Start Date
The City agrees to employ Employee as City Manager 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 shall start performance of his duties as City Manager on July 1, 2022.

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 (“Term”) be for a period of five (5) years, commencing on July 1, 2022 to July 1, 2027, unless terminated earlier by either Party pursuant to Section 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 in accordance with Section 5 to City Council.

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2 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 and in Article VII 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. 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 sixty (60) 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 701 of the City’s Charter, which provides that the City Council may remove the City Manager by a resolution adopted by at least four (4) affirmative votes.
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 sixty (60) 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;
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3 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 Manager’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 Manager in a greater percentage than an applicable across-the-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. Termination by Employee: In the event Employee voluntarily resigns his position with City at any time during the term of this Agreement, then Employee shall give City no less than sixty (60) days written notice, unless the parties otherwise agree. Failure of Employee to give the required sixty (60) days' written notice of resignation will result in a pro-rata reduction in benefits normally payable to resigning City employees, such as, but not limited to, accrued vacation payment, and the like. Voluntary resignation by Employee will result in a loss of all Severance Pay from City.
e. 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; and 2) there is no express or implied promise made to Employee for any form of continued employment as City Manager 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.

Nothing in this Agreement shall be construed to create a property interest for Employee in the position of City Manager.

6. Salary
a. Effective July 1, 2022, City agrees to pay Employee $240,000 in base salary per year ($20,000 per month) during the term of this Agreement 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 may be entitled to receive a salary increase, commencing in July, 2023 and every year thereafter for cost of living adjustment. The City Council shall review and determine whether to grant a cost of living adjustment and the appropriate rate of adjustment at the time of performance review.

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4 c. City agrees to review Employee’s performance in the second quarter of 2023 in accordance with Section 9 of this Agreement. 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 employees in the City’s Compensation and Benefits Plan for Executive Team, 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: City shall contribute a maximum of $10,000 annually into either an International Capital Market Association (ICMA-RC)\MissionSquare Retirement deferred compensation plan, or other similar plan in which the City participates. The annual amount will be divided and paid equally amongst Employee’s pay periods. c. Housing Allowance: Upon providing proof of residency, as explained further below, City will pay to Employee $2,000 per month for six (6) months for a maximum amount of $12,000. This Housing Allowance shall be contingent upon Employee establishing residency in the City of Watsonville’s geographic boundaries within one year of the Effective Date of this Agreement.
d. Vacation Accrual: City agrees to provide Employee a maximum vacation accrual of twenty (20) days per year, in recognition of his years of public service. e. Professional Development: City shall pay for professional dues and subscriptions during the term of this Agreement necessary for Employee’s continuation and full participation in the following organizations:

International City/County Management Association (ICMA); and California City Management Foundation (CCMA).

8. Severance
a. 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. Employee shall not receive severance if, at the end of the five year Term, the Council determines not to renew this Agreement.
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.

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5 d. If Employee is paid severance pay as provided in section 8(e), below, payment of such severance shall be conditioned upon Employee's signature on written waiver, attached hereto as Exhibit A, 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 cash payment equal to 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 703 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: Mayor
City of Watsonville
275 Main St., 4th Floor
Watsonville, CA 95076
TO EMPLOYEE: Rene Mendez
[Most recent address on file with human resources]
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6 13. Abuse of Office
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
a. This Agreement and its attachments and exhibit 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. The Parties agree that the recitals identified in this Agreement are true and correct and are incorporated into the terms of this Agreement.
b. The following exhibit is incorporated by reference to this Agreement:

Exhibit A- Form of Written Waiver

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 Rene Mendez 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. [Signatures on Following Page]
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7 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
____________________________ _________________________________ RENE L. MENDEZ Ari Parker, Mayor
ATTEST:
____________________________
Irwin Ortiz, City Clerk
APPROVED AS TO FORM:
____________________________
Samantha W. Zutler, City Attorney
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EXHIBIT A

SEPARATION AGREEMENT
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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 Rene Mendez, an individual (hereinafter referred to as “EMPLOYEE”).

2. RECITALS

2.1. EMPLOYEE was hired by CITY as its permanent City Manager, to serve at the pleasure of the City Council, pursuant to an Employment Agreement for the Position of City Manager made and entered into April ____, 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 nonelected 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.

3. CONSIDERATION

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 DocuSign Envelope ID: 95E66F4F-723B-4292-BFB2-AA3F5D357C47

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severance, settlement and release in the form of a lump sum amount of _________________ 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.

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 discriminate with DocuSign Envelope ID: 95E66F4F-723B-4292-BFB2-AA3F5D357C47

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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 he knowingly and voluntarily, for just compensation in addition to anything of value to which EMPLOYEE was already entitled, waives and releases any rights he may have under the ADEA and/or OWBPA.

EMPLOYEE further acknowledges that he 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 he 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 he 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 twentyone (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 he 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 his counsel of choice, and that he 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
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(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.

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

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EMPLOYEE understands and agrees that he shall be exclusively liable for the payment of all taxes for which he 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.

7.8. 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 City keys, equipment, computer identification cards or codes, and other equipment or DocuSign Envelope ID: 95E66F4F-723B-4292-BFB2-AA3F5D357C47

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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 he has not filed any complaints or charges against CITY or CITY PARTIES with any local, state or federal agency or court; that he 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, he will request such agency or court to withdraw from the matter forthwith.

8. MISCELLANEOUS

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As to EMPLOYEE: As to THE CITY:

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

Mayor
City of Watsonville
275 Main St., 4th Floor
Watsonville, California 95076
[Signatures on Following Page]
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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:

Rene Mendez
Dated: CITY
By:
, Mayor
ATTEST:

By:
, City Clerk

APPROVED AS TO FORM
By:
, City Attorney
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6/8/2023 12:58:22 PM
C:\Program Files\eSCRIBE\TEMP\12581950039\12581950039,,,Report - Award Contract Freedom Site Feasibility Study .docx Agenda Report
MEETING DATE: Tuesday, June 13, 2023
TO: City Council
FROM: INTERIM PUBLIC WORKS & UTILITIES DIRECTOR VIDES

WATER DIVISION MANAGER KAYSER
THROUGH: CITY MANAGER MENDEZ
SUBJECT: CONTRACT WITH CAROLLO ENGINEERS, INC. FOR THE

FREEDOM SITE FEASIBILITY STUDY
RECOMMENDED ACTION:

Adopt a resolution awarding a contract to Carollo Engineers, Inc. for the Freedom Site Feasibility Study in the amount of $249,688; and authorizing the City Manager to execute said contract.

BACKGROUND:

The City of Watsonville supplies and distributes potable water within both City limits and in unincorporated areas of Santa Cruz County. Within the service area, the largest zone is Zone 1, both in geographical area and in system demand flow. Zone 1 supplies a significant part of the commercial and residential districts including downtown Watsonville.

The two existing wells, Fowle reservoir and booster pump station, located on Freedom Boulevard near Sydney Avenue provide a large storage and distribution component of water to Zone 1. This site’s facilities range in age from about 50 years (booster pump station original construction) to 90 years (original construction of Well No. 1 and the reservoirs). Although the City has continued to improve and rehabilitate the assets over the years to prolong their useful life, the facility is at or near the end of its useful life.

DISCUSSION:

The Freedom site facility components are vulnerable to seismic hazards due to the age of construction and the lack of earthquake standards at the time of original design. The site includes two earthen embankment storage reservoirs (one 5.3 million gallon (MG) reservoir and one 0.7 MG reservoir) with floating Hypalon covers, two wells (Well Nos. 1 and 5) providing a total of 2,000 gpm of operational supply capacity, a concrete masonry unit (CMU) booster pump station typically providing a total of 6,000 gpm of pumping capacity into the distribution system, and ancillary equipment within other onsite structures including pressure relief/reducing valves, a standby generator, disinfection systems, and electrical power supply and distribution equipment.

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6/8/2023 12:58:22 PM
C:\Program Files\eSCRIBE\TEMP\12581950039\12581950039,,,Report - Award Contract Freedom Site Feasibility Study .docx The purpose of the feasibility study is to evaluate alternatives for the storage system type, sizing, and layout to replace the existing potable water facility site and consider including additional multi-benefit or recreational use for the site.

Carollo Engineers, Inc. was selected from the City’s list of On-Call Water and Wastewater Design consultants for their knowledge and experience in water facilities and their specific experience working with the City’s Water System. The on-call consultants list was selected from the publicly advertised Request for Qualification Statements from Consulting Engineering Firms for Periodic and On-Call Water and Wastewater Professional Design Services in June 2020 which is valid for three years.

Staff, therefore, recommends a professional services agreement be executed with Carollo Engineers, Inc. in the amount of $249,688 for the Freedom Site Feasibility Study.

STRATEGIC PLAN:

This project supports Strategic Plan Priority:
3-Infrastructure & Environment
FINANCIAL IMPACT:

Funds for this project are budgeted in account code 0720-913-7813-14414.

ALTERNATIVE ACTION:

Council could elect not to award the contract to Carollo Engineers, Inc.

ATTACHMENTS AND/OR REFERENCES (If any):

None.

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1 Reso No. (CM)
C:\Program Files\eSCRIBE\TEMP\13421016239\13421016239,,,Resolution - Award Contract for Freedom Site Feasibility Study .docx bvf 6/7/2023 1:42:13 PM
RESOLUTION NO. (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

AWARDING A CONTRACT FOR CONSULTANT SERVICES BETWEEN
THE CITY OF WATSONVILLE AND CAROLLO ENGINEERS, INC., A

CORPORATION, TO PERFORM THE FREEDOM SITE FEASIBILITY
STUDY, IN AN AMOUNT NOT TO EXCEED $249,688; AND AUTHORIZING

AND DIRECTING THE CITY MANAGER TO EXECUTE SAME
WHEREAS, § 3-5.500 of the Municipal code provides that an RFP or RFQ process is found to be an effective and efficient way to procure professional services and procurement of professional services shall be based on proposals solicited from capable professionals and be evaluated based on a combination of factors including education, training, experience and demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required; and WHEREAS, § 3-5.540 of the Municipal Code provides that contracts for professional services estimated to cost more than One Hundred Thousand and no/100ths ($100,000.00) Dollars must be awarded by the Council, and that the selection will be based on demonstrated competence and on the education, training and experience and professional qualifications necessary for the satisfactory performance of the services required, that cost will not be the only basis for selection, and that the City will use a qualifications-based selection process as described in subdivision (a) of § 4527 of the California Government Code and negotiated as described in § 4528; and WHEREAS, a Request for Qualifications (RFQ) was issued in May of 2020, with submissions due June of 2020, asking for qualified consultants to assist the City for periodic and on call water and wastewater professional design services; and WHEREAS, a total of 12 firms submitted qualification statements; these statements were reviewed by City staff and a list was developed; and

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2 Reso No. (CM)
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WHEREAS, Carollo Engineers, Inc., is on this list of eligible on-call consultants for the consideration of the City Manager and submission to the City Council; and WHEREAS, Carollo Engineers, Inc., was selected from the City’s list of eligible on-Call Water and Wastewater Design consultants for their knowledge and experience in water facilities and their specific experience working with the City’s water facilities; and
WHEREAS, the City Manager has recommended that the proposal from Carollo Engineers, Inc., a corporation, in an amount not to exceed $249,688, be accepted as the best response for the Freedom Site Feasibility study project.

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 awarding contract to Carollo Engineers, Inc. for the Freedom Site Feasibility Study Evaluation 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 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 the contract is hereby awarded to Carollo Engineers, Inc., a corporation, for the Freedom Site Feasibility study project, in an amount not to exceed $249,688.

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3 Reso No. (CM)
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3. That the Contract for Consultant Services between the City of Watsonville and Carollo Engineers, Inc., a copy of which is attached hereto and incorporated herein by this reference, is hereby approved.

4. Consultant shall file FPPC for 700s and 805s pursuant to section 19 of the Contract.

5. That the City Manager is hereby authorized and directed to execute said Contract for and on behalf of the City of Watsonville, in the form attached hereto with minor revisions that may be approved by the City Manager and the City Attorney. ********************************

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CONTRACT FOR CONSULTANT SERVICES BETWEEN
THE CITY OF WATSONVILLE AND CAROLLO ENGINEERS, INC.

THIS CONTRACT, is made and entered into this ______________________, by and between the City of Watsonville, a municipal corporation, hereinafter called “City,” and Carollo Engineers, Inc., hereinafter called "Consultant."

WITNESSETH
WHEREAS, the City needs to obtain certain professional, technical and/or specialized services of an independent contractor to assist the City in the most economical manner; and
WHEREAS, Consultant has the requisite skill, training, qualifications, and experience to render such services called for under this Contract to City.

THE PARTIES HEREBY AGREE AS FOLLOWS:

SECTION 1. SCOPE OF SERVICES. Consultant shall perform those services as specified in detail in Exhibit "A," entitled "SCOPE OF SERVICES" which is attached hereto and incorporated herein.

SECTION 2. TERM OF CONTRACT. The term of this Contract shall be from May 30, 2023 to June 30, 2025, inclusive.

SECTION 3. SCHEDULE OF PERFORMANCE. The services of Consultant are to be completed according to the schedule set out in Exhibit "B," entitled "SCHEDULE OF PERFORMANCE," which is attached hereto and incorporated herein. Consultant will diligently proceed with the agreed Scope of Services and will provide such services in a timely manner in accordance with the "SCHEDULE OF PERFORMANCE." SECTION 4. COMPENSATION. The compensation to be paid to Consultant including both payment for professional services and reimbursable expenses as well as the rate and schedule of payment are set out in Exhibit "C" entitled "COMPENSATION," which is attached hereto and incorporated herein.

SECTION 5. METHOD OF PAYMENT. Except as otherwise provided in Exhibit "C," each month, Consultant shall furnish to the City a statement of the work performed for compensation during the preceding month. Such statement shall also include a detailed record of the month's actual reimbursable expenditures.

SECTION 6. INDEPENDENT CONSULTANT. It is understood and agreed that Consultant, in the performance of the work and services agreed to be performed by Consultant, shall act as and be an independent Consultant and not an agent or employee of City, and as an independent Consultant, shall obtain no rights to retirement

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benefits or other benefits which accrue to City's employees, and Consultant hereby expressly waives any claim it may have to any such rights.

SECTION 7. ASSIGNABILITY. Consultant shall not assign or transfer any interest in this Contract nor the performance of any of Consultant's obligations hereunder, without the prior written consent of City, and any attempt by Consultant to so assign this Contract or any rights, duties or obligations arising hereunder shall be void and of no effect.

SECTION 8. INDEMNIFICATION.

To the full extent permitted by law (subject to the limitations of Civil Code section 2782.8 for any “design professional services” performed under this Contract), Consultant will indemnify, hold harmless, release and defend the City (including its officers, elected or appointed officials, employees, volunteers or agents) from and against any and all liability or claims (including actions, demands, damages, injuries, settlements, losses or costs [including legal costs and attorney’s fees])(collectively “Liability”) of any nature, to the extent arising out of, pertaining to, or relating to Consultant’s negligence, recklessness, or willful misconduct in the performance of this Contract. In no event shall the cost to defend charged to the Consultant exceed the Consultant’s proportionate percentage of fault. Consultant’s indemnification obligations under this Contract are not limited by any limitations of any insurance held by Consultant, including, but not limited to, workers compensation insurance.

SECTION 9. INSURANCE.

A. Errors and Omissions Insurance. Consultant shall obtain and maintain in full force throughout the term of this Contract a professional liability insurance policy (Errors and Omissions), in a company authorized to issue such insurance in the State of California, with limits of liability of not less than One Million Dollars ($1,000,000.00) to cover all professional services rendered pursuant to this Contract.

B. Auto and Commercial General Liability Insurance. Consultant shall also maintain in full force and effect for the term of this Contract, automobile insurance and commercial general liability insurance with an insurance carrier satisfactory to City, which insurance shall include protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from any actual occurrence arising out of the performance of this Contract. The amounts of insurance shall not be less than the following:
(1) Commercial general liability insurance, or equivalent form, with a combined single limit of not less than $500,000.00 per occurrence. If such insurance contains a general aggregate limit, such limit shall apply separately to each project Consultant performs for City. Such insurance shall (a) name City, its appointed and elected officials, and its employees as insureds; and (b) be primary with respect to insurance or self-insurance programs maintained by City and (c) contain standard separation of insured's provisions.

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(2) Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $500,000.00 per occurrence. Such insurance shall include coverage for owned, hired and non-owned automobiles.

C. Workers’ Compensation Insurance. In accordance with the provisions of Section 3700 of the Labor Code, Consultant shall be insured against liability for Workers’ Compensation or undertake self-insurance. Consultant agrees to comply with such provisions before commencing performance of any work under this Contract.

D. Proof of Insurance to City before Notice to Proceed to Work. Consultant shall satisfactorily provide certificates and endorsements of insurance to the City Clerk before Notice to Proceed to Work of this Contract will be issued. Certificates and policies shall state that the policy shall not be canceled or reduced in coverage without thirty (30) days written notice to City. Approval of insurance by City shall not relieve or decrease the extent to which Consultant may be held responsible for payment of damages resulting from services or operations performed pursuant to this Contract.

Consultant shall not perform any work under this Contract until Consultant has obtained the required insurance and until the required certificates have been submitted to the City and approved by the City Attorney. If Consultant fails or refuses to produce or maintain the insurance required by these provisions, or fails or refuses to furnish City required proof that insurance has been procured and is in force and paid for, City shall have the right at City's election to forthwith terminate this Contract immediately without any financial or contractual obligation to the City. As a result of such termination, the City reserves the right to employ another consultant to complete the project.

E. Written notice. Contractor shall provide immediate written notice if (1) any insurance policy required by this Contract is terminated; (2) any policy limit is reduced; (3) or any deductible or self insured retention is increased.

SECTION 10. NON-DISCRIMINATION. Consultant shall not discriminate, in any way, against any person on the basis of age, sex, race, color, creed, national origin or disability in connection with or related to the performance of this Contract.

SECTION 11. TERMINATION.

A. City and Consultant shall have the right to terminate this Contract, without cause, by giving not less than ten (10) days written notice of termination.

B. If Consultant fails to perform any of its material obligations under this Contract, in addition to all other remedies provided by law, City may terminate this Contract immediately upon written notice.

C. The City Manager is empowered to terminate this Contract on behalf of City.

D. In the event of termination, Consultant shall deliver to City copies of all work papers, schedules, reports and other work performed by Consultant and upon receipt thereof, Consultant shall be paid in full for services performed and reimbursable expenses incurred to the date of termination.

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SECTION 12. COMPLIANCE WITH LAWS. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local governments. Consultant shall obtain and maintain a City of Watsonville business license during the term of this Contract.

SECTION 13. GOVERNING LAW. City and Consultant agree that the law governing this Contract shall be that of the State of California. Any suit brought by either party against the other arising out of the performance of this Contract shall be filed and maintained in the Municipal or Superior Court of the County of Santa Cruz.

SECTION 14. PRIOR CONTRACTS AND AMENDMENTS. This Contract represents the entire understanding of the parties as to those matters contained herein.

No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Contract may only be modified by a written amendment.

SECTION 15. CONFIDENTIAL INFORMATION. All data, documents, discussions or other information developed or received by or for Consultant in performance of this Contract are confidential and not to be disclosed to any person except as authorized by the City Manager or his designee, or as required by law.

SECTION 16. OWNERSHIP OF MATERIALS. All reports, documents or other materials developed or received by Consultant or any other person engaged directly by Consultant to perform the services required hereunder shall be and remain the property of City without restriction or limitation upon their use.

SECTION 17. COVENANT AGAINST CONTINGENT FEES. The Consultant covenants that Consultant has not employed or retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure the Contract, and that Consultant has not paid or agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fees, commissions, percentage, brokerage fee, gift, or any other consideration contingent on or resulting from the award or making of this Contract, for breach or violation of this covenant, the City shall have the right to annul this Contract without liability, or in its discretion, to deduct from the Contract price or consideration or otherwise recover, the full amount of such fee, commission, percentage fee, gift, or contingency.

SECTION 18. WAIVER. Consultant agrees that waiver by City or any one or more of the conditions of performance under this Contract shall not be construed as waiver of any other condition of performance under this Contract.

SECTION 19. CONFLICT OF INTEREST.

A. A Consultant shall avoid all conflict of interest or appearance of conflict of interest in performance of this Contract. Consultant shall file a disclosure statement, if required by City Council Resolution, which shall be filed within thirty (30) days from the effective date of this Contract or such Resolution, as applicable.

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B. No member, officer, or employee of the City, during their tenure, or for one (1) year thereafter, shall have any interest, direct or indirect, in this Contract or the proceeds thereof and Consultant agrees not to allow, permit, grant, transfer, or otherwise do anything which will result in such member, officer, or employee of the City from having such interest.

SECTION 20. AUDIT BOOKS AND RECORDS. Consultant shall make available to City, its authorized agents, officers and employees, for examination any and all ledgers and books of account, invoices, vouchers, canceled checks and other records or documents evidencing or related to the expenditures and disbursements charged to the City, and shall furnish to City, its authorized agents and employees, such other evidence or information as City may require with respect to any such expense or disbursement charged by Consultant.

SECTION 21. NOTICES. All notices shall be personally served or mailed, postage prepaid, to the following addresses, or to such other address as may be designated by written notice by the parties:

CITY
City Clerk’s Office
275 Main Street, Suite 400
Watsonville, CA 95076
(831) 768-3040

CONSULTANT
Carollo Engineers, Inc.
2795 Mitchell Drive
Walnut Creek, CA 94598
(925) 932-1710
SECTION 22. EXHIBITS:

Exhibit A: Scope of Services
Exhibit B: Schedule of Performance
Exhibit C: Compensation
///
///
///
///

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WITNESS THE EXECUTION HEREOF, on the day and year first hereinabove written.

CITY

CITY OF WATSONVILLE
BY ______________________________
Rene Mendez, City Manager

ATTEST:

BY ______________________________
Irwin I. Ortiz, City Clerk
APPROVED AS TO FORM:

BY ______________________________
Samantha W. Zutler, City Attorney

CONSULTANT
CAROLLO ENGINEERS, INC.

BY_________________________________
Elaine Simmons, Associate Vice
President
BY_________________________________
Anne Prudhel, Senior Vice President

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EXHIBIT "A"

SCOPE OF SERVICES
The scope of services is as follows:

Please see Attachment A. for Scope of Services

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EXHIBIT “B”

SCHEDULE OF PERFORMANCE
Services shall commence immediately upon execution of this Contract. All services performed under the provisions of this Contract shall be completed in accordance with the following schedule: May 30,2023 to June 30,2025

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EXHIBIT “C”

COMPENSATION
a. Total Compensation. The total obligation of City under this Contract shall not exceed ____$249.688_______________________.
b. Basis for Payment. Payment(s) to Consultant for services performed under this Contract shall be made as follows and shall include payment for reimbursable expenses:
c. Payment Request. Consultant shall submit a request for payment for services on a monthly basis by letter to Director, or said Director's designated representative. Such request for payment shall cover the preceding monthly period during the term hereof, shall note the City's purchase order number for this Contract, shall contain a detailed listing of the total number of items or tasks or hours for which payment is requested, the individual dates on which such services were rendered, and invoices for reimbursable expenses, if any. Upon receipt in the Office of Director of said payment request, Director shall cause payment to be initiated to Consultant for appropriate compensation. r appropriate compensation.

See Attachment B. – Exhibit C. Fee Proposal (Phase 1)

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EXHIBIT A

SCOPE OF SERVICES

CITY OF WATSONVILLE
(CITY)
AND
CONSULTANT ENGINEERS, INC.
(CONSULTANT)

FREEDOM BOULEVARD SITE FEASIBILITY STUDY
(PROJECT)

PROJECT INTRODUCTION
This Scope of Services is to define the CONSULTANT's scope, schedule, and budget for furnishing site feasibility analysis services for the

Freedom Boulevard Site Feasibility Study (Project). The purpose of the Project is to determine the feasibility of redeveloping the existing potable water facility site by modernizing the existing water utility components while allocating space for potential future public recreation. Unless otherwise noted, CITY generally refers to the City of Watsonville Public Works & Utilities Department. The project scope includes conducting a Phase geotechnical investigation, conducting a conceptual design-level analysis of project components with conceptual site layout alternatives, preparing an environmental constraints and considerations analysis, preparing a preliminary funding strategy, and preparing a site feasibility study technical memorandum with preliminary opinion of probable construction costs.

The CITY supplies and distributes potable water for drinking and fire protection to its customers within both CITY limits and in unincorporated areas of Santa Cruz County. Within the CITY’s service area, the largest distribution system pressure zone is Zone , which is largest both in geographical area and in system demand flow. Zone supplies a significant part of the commercial and residential districts including downtown Watsonville, as well as many agricultural users via the CITY’s largest customer, Pajaro Valley Water Management Agency (PV Water).

The Project facility located at 7 8 Freedom Boulevard (APN ;-7 -<) in Watsonville, CA is currently owned and operated by the CITY and is the only potable water storage facility serving Zone . It includes two earthen embankment storage reservoirs (one 7. million gallon (MG) reservoir and one .< MG reservoir) with floating Hypalon covers, two wells (Well Nos. and 7) providing a total of , gpm of operational supply capacity (reduced from an original , gallons per minute (gpm) of design supply capacity), a concrete masonry unit (CMU) booster pump station typically providing a total of ;, gpm of pumping capacity into the distribution system (up to ?, to 8, gpm in an extreme event), and ancillary equipment within other onsite structures including pressure relief/reducing valves, a standby generator, disinfection systems, and electrical power supply and distribution equipment. The original age of the facility generally ranges from about 7 years (booster pump station original construction) to 8 years (original construction of Well No. and the reservoirs). Although the CITY has continued to improve and rehabilitate the assets over the years to prolong useful life, the facility is at or near the end of its useful life. The facility components are vulnerable to seismic hazards due to age of construction and the lack of earthquake standards at the time of original design. In addition, the site is Attachment A. - Exhibit A. Scope of Services

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now located in the middle of a busy residential and commercial corridor, making the earthen embankment and floating cover of the reservoirs potentially vulnerable to site vandalism that could affect water quality security. The site borders single-family residential properties on three sides of the property boundary and commercial properties along Freedom Boulevard. The existing facility components (with preliminary demolition plan) are shown in Figure .

Based on an initial site evaluation completed by the CONSULTANT (Final, June ?), the existing site appears to have sufficient space for modernizing to a new facility with the potable water components proposed in this scope of work. At the time of the initial site evaluation, the CITY had not yet selected the storage tank(s) material and was also interested in siting public recreation facilities on approximately half of the property. In September , the CITY asked the CONSULTANT to develop budgetary cost placeholders for funding opportunity consideration using the option of fully buried prestressed concrete tanks with recreational (live) loads above the tanks. For this Project phase, the CITY would like to understand the site characteristics, site constraints, and layout sizing for the modernized potable water facility to understand how much remaining property could be available for siting proposed public recreation components such as walking trails and parking spaces.

This scope of work outlines the next steps of developing a site feasibility analysis of the proposed redeveloped potable water facility to provide planning-level information for the CITY to make decisions regarding how to develop the Project. This scope of work excludes development of the proposed public recreation components, which is assumed to be developed as a later phase of work (and possibly developed after the construction of the upgraded water facility). The proposed redeveloped water facility includes replacing the existing lined and covered earthen reservoirs with new prestressed concrete storage tanks (aboveground, or partially or completely buried) up to the same total storage capacity, replacing the existing booster pump station and electrical room with a new booster pump station and electrical room of the same capacity while keeping the option of rehabilitating the existing booster pump station building for future public use, rehabilitating or replacing Well No. and/or Well No. 7 with wells of the same capacity, replacing the existing wellhead(s) chlorine gas disinfection system with a new disinfection system and (if needed), a new nitrate treatment system, replacing the standby generator, replacing the electrical service entrance equipment, ancillary facilities such as site access, lighting, site security, conceptual-level stormwater management, and regrading the remainder of the site for development into future public-use facilities. The CITY’s primary goal for the future water facility construction project is to enhance water supply reliability by replacing aged infrastructure with new infrastructure of the same capacity for the CITY’s Zone service area.

Engineering services for the overall project are proposed to be executed in up to three phases. This scope of services is for Phase of the project (site feasibility study). A scope of work for the next phase(s) of preliminary design and/or detailed design is anticipated to be prepared by amendment following completion of Phase tasks.

CONSULTANT'S SERVICES
CONSULTANT will perform the following services under Phase :
• Task : Project Administration.
• Task : Phase Geotechnical Investigation.
• Task : Conceptual Development of Project Components
• Task E: Environmental Constraints and Considerations Analysis • Task 7: Preliminary Funding Strategy.
• Task ;: Site Feasibility Study Technical Memorandum and Conceptual Cost Estimate

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• Optional Task <: Additional Geotechnical and Support Services TASK – PROJECT ADMINISTRATION
Task . Project Coordination and Monitoring
This task provides project coordination and monitoring between CITY and CONSULTANT team members, including SUBCONSULTANTS. This task includes preparation of monthly progress reports, regular correspondence with team members, and review of work progress for quality and completion.

Monthly progress reports (submitted with monthly invoices) will include the following:
• Description of work completed in reporting period.
• Percentage complete to date by task and subtask.
• Project schedule and budget status.
• Deliverable status.
• Key decisions made and major upcoming action items.
• Potential project issues.

Task .2 Kickoff and Project Progress Meetings
This task includes the following project meetings:
• One Kickoff Meeting (virtual for one hour) with CITY and CONSULTANT team members including SUBCONSULTANTS to introduce project team members, review project scope of work and deliverable schedule, and discuss background information request. The kickoff meeting will be held shortly after Notice to Proceed.
• One site visit with CONSULTANT and relevant SUBCONSULTANTS (for up to four hours and may be combined with kickoff meeting).
• One conceptual site plan review meeting (in Watsonville for up to four hours) with CONSULTANT. Attendance by relevant SUBCONSULTANTS is assumed at one hour each, virtually.
• One findings and recommendations review meeting prior to submitting the Draft Technical Memorandum (with CONSULTANT; assumed virtually for two hours). • Four additional progress or coordination meetings (virtual for one hour each) with CITY staff and other project stakeholders (such as CITY Planning Department staff). • The final schedule for all meetings will be established with the CITY after Notice to Proceed.

Task Assumptions
• Task meetings are in addition to any meetings and/or site visits described in later tasks of this scope.
• This task does not include attendance at or preparation of public presentation slides, CITY staff reports, or other public outreach documents to support any public meetings such as updates to City Council. It is assumed that CITY staff will prepare these materials using the project deliverables described in this scope.
• CONSULTANT will perform the scope of services over an assumed 8-month duration upon Notice-to-Proceed (assumed by Spring ).

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Task Deliverables
• Monthly invoices, monthly progress reports, and schedule updates. • Meeting agendas and minutes.
• Decision item, action item, and comment log updates.

TASK 2 – PHASE GEOTECHNICAL INVESTIGATION
This task provides for a Phase feasibility-level geotechnical investigation by CONSULTANT’s SUBCONSULTANT for the planning and preliminary engineering phases of the Project which includes field exploration of four (E) soil borings, laboratory testing of collected soil samples, limited geotechnical evaluation of available data, and reporting. Phase is anticipated to provide a preliminary assessment of the geologic, geohazard and subsurface conditions for anticipated geotechnical design considerations and constraints used in preliminary alternatives screening and project feasibility purposes. Phase Geotechnical Investigation is not intended to be adequate for the development of site-specific geotechnical and seismic recommendations for final design and engineering criteria for this project. Should the CITY proceed with preliminary and final design of the Project, a Phase geotechnical investigation would be required which would include additional subsurface exploration, laboratory testing and geotechnical analysis in order to provide design-level geotechnical and seismic recommendations and site-specific engineering criteria.

Task 2. Pre-Field Activities
SUBCONSULTANT will coordinate with CITY and CONSULTANT for collecting available background data. The proposed geotechnical services will include a brief “high level” desktop study to review readily available background data, including available reports and geological references from past studies and projects in the immediate vicinity of the site.

SUBCONSULTANT will coordinate with CITY staff to schedule the field exploration of four (E) soil borings which is anticipated to be completed in two -hour days. SUBCONSULTANT will conduct a brief site reconnaissance to mark the areas for field explorations and will notify Underground Service Alert (USA-North) at least three working days prior to exploration work. Since utility companies typically do not mark utilities at facilities such as the Project site, SUBCONSULTANT will provide a private utility locator prior to subsurface drilling.

Task 2.2 Field Investigation and Laboratory Testing
SUBCONSULTANT will drill (using solid stem auger and mud rotary drilling methods), sample, and log four exploratory borings to depths ranging from E7 feet to <7 feet each, for a total of approximately to 7 lineal feet of boring. Additional exploratory borings and/or depths may be scheduled with Optional Task <. SUBCONSULTANT will remove and dispose of all drummed spoils (drill and soil cuttings and fluids) other than as noted in Task Assumptions. Borehole locations will require access by truck or track-mounted drilling equipment and will not require penetration through hard surfaces such as concrete. Borings will be backfilled with neat cement grout. A limited laboratory testing program will be performed on selected samples retrieved from the exploratory borings to evaluate the physical and engineering properties.

Task 2.4 Data Evaluation and Geotechnical Letter Report SUBCONSULTANT will subsequently prepare a letter report to the CONSULTANT with preliminary (feasibility level) conclusions and opinions regarding site suitability for planned construction of the new

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of
Project facilities from a geotechnical engineering standpoint, based on the limited Phase investigation. The brief deliverable will include various technical topics including geotechnical consideration of Project feasibility and constraints, potential need for ground improvement and/or remedial earthwork including slope stabilization, slope stability, preliminary sitework construction considerations, and general foundation type selection or alternatives for site development. Preliminary conclusions regarding geologic hazards such as seismic ground shaking, potential for liquefaction, possible seismic-induced settlement, and potential for lateral spreading will be included. California Building Code-based preliminary seismic design parameters including values for SDS and SD developed based on ASCE <-; guidelines.

Task 2 Assumptions
• One project kickoff meeting attendance (virtual for one hour), one site reconnaissance field visit (for up to four hours and may be combined with kickoff meeting) and one technical findings and recommendations meeting (virtual for one hour) are included. Additional meetings may be scheduled with Optional Task <.
• CITY staff will provide Project site access to the CONSULTANT (and SUB-SUBCONSULTANTS) for as-needed site visits, utility location and field drilling activities. Site access coordination should occur at least two weeks in advance of any field drilling activities. • CITY staff will provide CONSULTANT with documentation of right-of-entry, facility operator notifications, and facility operator contact information at least one week in advance of any planned field activities.
• SUBCONSULTANT will maintain a Health and Safety Plan for the field exploration which will be discussed with each person entering the site during field activities. • No permits (such as temporary encroachment or for drilling) are anticipated to be required by the CITY or by the County of Santa Cruz for Phase .
• Borings will be located in unpaved areas or through asphalt pavement up to 7 inches thick.

Should obstructions be encountered during exploration that do not permit drilling advancement, additional time for clearing or boring relocation may be required. • Drill cuttings/fluid removal and disposal are assumed to be for non-hazardous waste. In the event that suspected hazardous materials are encountered, drilling will be terminated and the borehole(s) cement grouted. The CITY will be notified immediately and will be responsible for proper disposal of any contaminated spoils.

Task 2 Deliverables
• Draft and Final Geotechnical Site Feasibility technical letter report in electronic (PDF) format.

TASK 4 – CONCEPTUAL DEVELOPMENT OF PROJECT COMPONENTS
This task provides for the following activities related with a conceptual design-level analysis to determine the feasibility of redeveloping the existing potable water Project facility to modernize the existing water utility components and allocate space for future public recreation access:

Task 4. Conceptual Development of Potable Water Storage Tanks This task provides for the development of up to two project alternative layouts and siting concepts for demolishing the existing earthen embankment reservoirs and constructing the new potable water storage tanks. For example, the two alternative layouts and siting concepts could analyze either two

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different tank diameters set at the same foundation elevation or analyze one tank diameter for both a completely buried and a partially buried option. The total tank volume (including space reserved for any future tanks) to be shown in the layouts will be less than or equal to the existing total reservoir volume of 6.0 MG. For this analysis, prestressed concrete tanks similar in type to the proposed new Zone Reservoir will be used as the CITY’s preselected material for replacing the existing earthen embankment reservoirs.

Task 4. Assumptions
• Alternative material analysis for the potable water storage tanks, such as life-cycle cost comparison of prestressed concrete with above-grade steel tanks, is not required. • If the aboveground and/or partially buried analysis option is selected by the CITY, maximum tank height used will be compliant with the current zoning requirements of the Project parcel and provided by the CITY. It is assumed that any discussions related with City and County permitting considerations and zoning requirements will be initiated and conducted by CITY staff. If required, attendance by CONSULTANT team could be included with Task or Task <. • Architectural renderings will not be required with this phase of the project. • Additional hydraulic modeling analysis of water demands, distribution system pressure, distribution system water quality, and potable water storage volume will not be required with this phase of work. Should additional information provided by the CITY (including new growth or development assumptions) indicate that hydraulic modeling analysis is required, additional services may be provided with Task 7.

Task 4.2 Conceptual Development of Potable Water Wells
Existing Well No. 1 (and the structural, mechanical, electrical, instrumentation and chemical appurtenances) are nearing the end of useful life, may be difficult to rehabilitate based on existing condition, and its location may not be compatible with a preferred future site layout. Existing Well No. 5 is rarely used by the CITY and its condition was not previously evaluated by CONSULTANT, but is assumed to be similar in age, condition, and future site layout incompatibility concerns as Well No. 1.

This subtask will evaluate the option of drilling one new well on the Project site and siting new related appurtenances including nitrate treatment and disinfection systems. The feasibility of rehabilitating or demolishing Well No. 1 and/or Well No. 5 will also be considered using any previous well casing inspection reports or other condition assessment reports provided by the CITY. Up to two project alternative layouts and siting concepts for the wells will be provided (in conjunction with the most feasible layouts for the new tanks and other site components).

Task 4.2 Assumptions
• Two 150-pound chlorine gas cylinders are currently used for each wellhead disinfection and are assumed to continue being the CITY’s preferred disinfection method and onsite chlorine gas storage volume for this analysis. Alternative disinfection technologies (such as sodium hypochlorite) will not be evaluated with this subtask but could be added as part of Task 7 or a future project. For this subtask, modernized chlorine gas systems (including appropriate emergency containment, scrubber system, and alarms) will be assumed to be required. • Nitrate contamination at both Well No. 1 and Well No. 5 has been reported by CITY staff, and blending with other sources of Zone 1 water in the existing Freedom Reservoirs is the CITY’s current technique for addressing current nitrate levels (Well No. 1 and No. 5 average 7 ppm,

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which is under the MCL of 10 ppm). For this analysis, nitrate wellhead treatment at the proposed new well will be investigated as one alternative for addressing nitrate contamination.

Alternative methods such as blending in a new storage tank, blending in the distribution system, or wasting to drain will not be evaluated with this subtask, but could be added as part of Task 7 or a future project.
• Well pumping capacity and water quality parameters including evaluation of historical well operational or water quality data, new well testing or aquifer testing will not be included with this analysis. For the purpose of sizing the new well and its nitrate wellhead treatment system, the CITY will provide a range of maximum and minimum well pump flows and nitrate concentrations to be used as conceptual design criteria. • Well No. 1 and Well No. 5 currently pump into the Freedom Reservoirs and are not included in the well capacity to Zone 1 as shown in the technical memoranda for the Water System Hydraulic Model Project (CONSULTANT, October 2019) and the 2025 or 2040 groundwater well capacity evaluations (CONSULTANT, November 2020). This subtask assumes that the new well and/or existing well(s) will pump into the new Freedom storage tank(s) and will not require additional hydraulic modeling analysis for other scenarios. Hydraulic modeling analysis for any additional scenarios (such as pumping directly into the distribution system) could be evaluated with Task 7 or a future project.
• Excludes consideration or analysis of a future hexavalent chromium project at this site and assumes any other concurrent or future CITY projects (in Zone 1 or above) will not impact the Project site. Any known impacts from other concurrent or future CITY projects should be discussed with the CONSULTANT as early as possible, and additional project budget may need to be added if scoped project components are impacted.

Task 4.4 Conceptual Development of the New and Existing Booster Pump Station Existing Fowle Booster Pump Station (including the structural, mechanical, electrical and instrumentation assets) is at or beyond the end of useful life, may be difficult to rehabilitate based on existing condition and age, and its location may not be compatible with a preferred future site layout.

Furthermore, the building was previously evaluated with a Tier 1 seismic analysis to have significant seismic deficiencies requiring seismic retrofit if the building is planned for continued use. This subtask will evaluate the option of locating a new booster pump station of similar pumping and electrical service capacity as the existing booster pump station on the Project site that will be compatible with the preferred layout and foundation depth of the new storage tank(s) and related site components.

Keeping the existing Fowle Booster Pump Station building in-place for future CITY repurposing such as a community center (requiring future seismic retrofit) will also be considered in up to two project alternative layouts (in conjunction with the most feasible layouts for the new tanks and other site components).

Task 4.4 Assumptions
• The existing booster pumps are horizontal split-case pumps (three 100 hp engine driven motors and one 30 hp electric motor). For this analysis, the new booster pumps will be assumed to be electrical motor-driven vertical turbine pumps with variable frequency drives, similar to the types used throughout other CITY booster pump stations. The new booster pumps will be assumed to be located in a permanent new building to minimize noise impact. • Booster pumping capacity required including historical operational data will not be evaluated with this analysis. For the purpose of sizing the new booster pumps, the CITY will provide a

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range of maximum and minimum booster pump flows and distribution system pressures to be used as conceptual design criteria.
• This subtask assumes that the new booster pumps will continue pumping into the Zone 1 distribution system and will not require additional hydraulic modeling analysis for other scenarios or for updating the hydraulic model itself. Additional hydraulic modeling analysis (such as updating with new growth or infill information) could be evaluated with Task 7 or a future project.
• Existing Fowle Booster Pump Station building evaluation or design of structural modifications and/or seismic retrofit is excluded.
• Architectural renderings will not be required with this phase of the project.

Task 4. Conceptual Development of the Site Electrical Equipment and Standby Generator Existing outdoor site electrical equipment (including the main switchboard, automatic transfer switch, and dry-type transformer) is at or near the end of useful life, may be difficult to rehabilitate based on existing condition and age, and their location may not be compatible with a preferred future site layout.

Furthermore, CITY staff previously indicated that there may be other electrical issues at the site such as grounding and DC to AC leaks which should be further considered as part of the Project site upgrades.

This subtask will evaluate the option of locating new site electrical equipment of similar electrical service capacity as existing on the Project site that will be compatible with the most feasible layouts for the new tanks and other site components.

The existing EE kW diesel emergency generator is located in a standalone metal prefabricated building installed in approximately 88. The building condition (including seismic condition) and current equipment condition is unknown. CITY staff previously indicated that the generator is reliable but excessively noisy, especially with the proximity of the residential neighborhood. This subtask evaluates whether the generator should be considered for replacement or improvements (including noise mitigation to the existing building or engine) as part of the Project site upgrades. Current air quality permitting regulations and siting requirements including noise mitigation will be considered.

Task 4. Assumptions
• Site electrical equipment layout (and new standby generator layout, if recommended) will be provided after the layouts for the rest of the site components have been determined. Up to two site electrical equipment and standby generator layout alternatives will be provided.

Task 4.

Conceptual Development of Utility Corridors and General Site Considerations The existing utility corridors for yard piping and yard electrical ductbank/conduits in general run along the northwestern and northeastern quadrants of the site. The oldest facility on the Project site, Well No. 1 , is approximately 95 years old, and various historical site improvements including addition and modifications to yard piping and electrical ductbank/conduits have occurred between 1927 and 2005.

This subtask will evaluate the routing of new yard piping and yard electrical ductbank/conduits on the Project site that will be compatible with the most feasible layouts for the new tanks and other site components. Siting of proposed new facilities will generally avoid being directly above new utility corridors. Additional considerations for demolishing, reusing, and/or abandoning-in-place existing utilities versus the need for new utilities will begin to be considered with up to two new layout alternatives.

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General site considerations that will be included with the new site layout alternatives include:
• Initial consideration of site topography and site grading needs for the water utility facility and any future public recreation and site access areas. Topographic and property boundary survey will not be provided with this subtask but could be considered with Task 7. If topographic survey will not be completed, CITY-provided digital topographic contours from 2007 and relevant information from any available historical site improvement drawings will be used. Up to two site grading alternatives will be provided (likely determined by CITY decision of storage tank foundation elevation in combination with geotechnical recommendations from Task 2). • Initial consideration of stormwater management and/or flood impacts. • Initial consideration of construction sequencing, staging, access, and temporary facility requirements during construction. Planning-level considerations for maintaining acceptable levels of water service throughout construction duration including providing water service from upper pressure zones will be developed with CITY staff. • Initial consideration of site security, mitigation of noise and visual impacts, and site lighting.

Task 4.

Assumptions
• General site considerations exclude: lighting or other visual impacts and aesthetics study, architectural or landscape renderings, noise study, traffic study of Freedom Boulevard and/or Evelyn Avenue and their impacts to site access, public outreach considerations, utility location, conceptual design of any of the public recreational or public access facilities, and property (re)zoning or specific permitting requirements associated with the proposed facility use(s).

Task 4.> Conceptual Site Layout Sketches (Task 4 Deliverables) Draft conceptual site layout sketches in electronic (PDF) format will be provided for two project alternative concepts, in plan view and where appropriate, in section (elevation) views. Each project alternative concept will coordinate and combine the relevant individual site component alternatives developed in Tasks . to .7. Draft site layout sketches will be submitted to the CITY prior to discussion and preferred alternative selection during a conceptual site plan review meeting (included with Task ).

Final conceptual site layout sketches will be included with the Feasibility Study technical memorandum (Task ;).

Task 4.> Assumptions
• One set of CITY review comments to the conceptual site layout sketches will be collated by the CITY and submitted to the CONSULTANT. Any additional rounds of edits may be provided by Optional Task 7.

TASK – ENVIRONMENTAL CONSTRAINTS AND CONSIDERATIONS ANALYSIS This task provides for the following:

Task . Environmental Constraints and Considerations Analysis SUBCONSULTANT will prepare a preliminary evaluation of the environmental issues, constraints and considerations related with the construction and operation of the proposed Project. The purpose of this evaluation is to identify potentially significant environmental impacts that the proposed Project could have if sited on the proposed location, in order to help the CITY and the CONSULTANT with site layout

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decisions prior to final design and begin developing the project description for environmental review.

The information developed will be designed to assist the CITY determine what the potential environmental impacts are and what will be required to comply with the California Environmental Quality Act (CEQA), CEQA-Plus, and/or potentially the National Environmental Policy Act (NEPA).

SUBCONSULTANT will conduct a desktop review of potential environmental permitting constraints to assess the potential Project impacts on special status species, aquatic resources, cultural resources, historical resources and/or properties, and a brief evaluation of constraints related to other environmental resources including noise, aesthetics, hydrogeology and land use. Based on the desktop constraints review results, SUBCONSULTANT will provide a table and brief discussion outlining the known environmental resources within the Project site and anticipated environmental permitting pathways for the Project, such as:
• Expected level of CEQA and NEPA/Section ; of the National Historic Preservation Act documentation.
• Any special biological resources surveys that may be required, such as protocol-level surveys for special status species, rare plant surveys, and/or a jurisdictional delineation. • Any environmental resource agency permits that may be required, such as from the U.S. Army Corp of Engineers, California Department of Fish and Wildlife, Regional Water Quality Control Board, or Monterey Bay Air Resources District.
• Any site-specific cultural resources including historical resources studies or evaluations that may be required. Cultural resources sensitivity of the project area will be based on a search of the California Historical Resources Information System (CHRIS) at the Northwest Information Center and a Native American Heritage Commission Sacred Lands File (SLF) search. Historical resources likelihood evaluation will be based on a review of historical resources inventories and other background documentation and records available.
• Any noise or traffic studies that may be required due to construction activities or design of a new second driveway for site access.
• Estimated environmental permitting costs.
• Relevant recommendations to streamline the environmental permitting process.

A draft and final memorandum describing the known environmental resources within the Project site, potential environmental permitting constraints, and their anticipated environmental permitting pathways will be provided to serve as the basis for determining what level of environmental review and/or additional analysis will be required to comply with CEQA, CEQA-Plus, and/or possibly NEPA.

Two project meetings – one up to E-hour site visit (may be part of the project kickoff meeting) and one -hour conference call to discuss the findings of the draft memorandum are included.

Task Assumptions
• The Project may set aside a portion of the parcel for public recreational use in the future; however, this task assumes that development of recreational components will not be a part of the project at this time and hence would require a separate environmental permitting strategy in the future.
• The Project could be partially funded by the Drinking Water State Revolving Fund (DWSRF) or other State or Federal funding opportunities.
• No more than three design options would require analysis in the Environmental Constraints and Considerations Memorandum.

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• One set of consolidated Draft Memorandum comments from the CITY (by all applicable departments) will be provided to CONSULTANT/SUBCONSULTANT for incorporation into the Final Memorandum.
• Development of any CEQA, CEQA-Plus, and/or NEPA documents or any permits required for project construction will be scoped during the next project phase and are excluded from this scope.
• Recordation and/or evaluation of any properties for historical resource or historic property eligibility is excluded from this scope.

Task Deliverables
• Draft and Final Environmental Constraints and Consideration Memorandum in digital (PDF) format.

TASK
– PRELIMINARY FUNDING STRATEGY
Task
. Funding Opportunities Identification and Preliminary Approach This task provides for the identification of available and relevant funding opportunities for the proposed project. This effort will begin with a virtual Funding Opportunities Kickoff Meeting to discuss current funding options available and funding program requirements (at a high-level), application processes and timelines, past CITY and CONSULTANT experiences, and proposed funding options for further consideration.

Based on input and direction from the CITY, CONSULTANT will develop a summary table of relevant funding opportunities and their timing and schedule considerations, eligibility and application considerations, and the advantages and disadvantages. The direction of the environmental constraints analysis in Task E including the considerations for CEQA, CEQA-Plus and/or NEPA documents may also dictate the funding options for the project. The Environmental Permitting SUBCONSULTANT may provide input on considerations related with specific funding options. One Funding Opportunities Findings Meeting will be conducted with the CITY to review the funding options and discuss next steps for implementation.

Task
Assumptions
• The findings from Task Conceptual Site Assessment and Task E Environmental Constraints Analysis will be essentially complete before detailed review of funding opportunities will begin. • This task excludes preparation of funding applications. • For budgetary purposes, E? CONSULTANT hours have been allocated to this task.

Task
Deliverables
• Draft and Final funding opportunities summary table in digital (PDF) format will be included with the Task ; Site Feasibility Study TM.

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TASK > – SITE FEASIBILITY STUDY TECHNICAL MEMORANDUM AND CONCEPTUAL

COST ESTIMATE
Task >. Draft and Final Site Feasibility Study TM
This task will document the findings and recommendations from the Phase Geotechnical Investigation, the conceptual development of project components including the final conceptual site layout sketches, the environmental constraints analysis, and the preliminary funding strategy into a Draft Site Feasibility Study Technical Memorandum (TM). Following CITY review of the Draft TM, a virtual review conference (Task .) will be scheduled to receive CITY comments. CITY comments received during the Draft Feasibility Study TM review process will be incorporated into a Final Site Feasibility Study TM.

Task 6.2 Preliminary Opinion of Probable Construction Costs This task will prepare a planning-level preliminary opinion of probable construction costs (Association for the Advancement of Cost Engineering [AACE] International Class 7) for each of the two project alternative concepts developed in Task . The preliminary estimates will include direct (e.g. materials, construction labor, construction equipment) and indirect costs (e.g. estimating contingency, sales tax, contractor’s general conditions and overhead). The probable construction costs will be incorporated into the Draft and Final TM.

Task > Assumptions
• Draft TM deliverable will be provided in electronic format (PDF and Word). Final TM deliverable will be provided in electronic format (PDF) and, if requested, bound hard copies ( each). • CITY Public Works & Utilities Department will lead all coordination activities with other CITY departments regarding review comments on the Draft TM. CITY Draft TM review comments by all departments will be submitted to the CONSULTANT in one collated set in Word using track changes.
• Where feasible or relevant, the TM format will follow the current DWSRF funding report format for possible future use; however, additional effort to develop a future DWSRF funding report is anticipated since relevant and necessary aspects of the project description and funding strategy will not yet be developed by this project phase.

Task > Deliverables
• Draft and Final Site Feasibility Study TM.

OPTIONAL TASK ? – ADDITIONAL GEOTECHNICAL AND SUPPORT SERVICES Optional Task ?. Additional Geotechnical Investigation Activities This optional task provides a budget allowance for additional geotechnical investigation activities of drilling two deeper Phase borings to 7 ft (instead of the <7 ft scoped in Task ) and related additional lab testing. This optional task would need to be authorized at the same time as notice-toproceed for Task services.

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pw://Carollo/Documents/Client\CA\Watsonville\_Proposals\Zone 2 Water Reservoir\Docs\Watsonville_Zone 2 Tank_SOW.docx Optional Task ?.2 Additional Support Services
This optional task provides a budget allowance for additional work that may be required during this phase that is not otherwise explicitly identified herein, but could include tasks such as additional funding support, additional permit coordination, and/or other additional support services related with the Project Site Feasibility Study. CONSULTANT will use the allowance only with approval from and as directed by the CITY on an as-needed basis during the progression of work.

Task ? Assumptions
• To be determined when this task is directed and approved by the CITY.

Task ? Deliverables
• To be determined when this task is directed and approved by the CITY.

TIME OF PERFORMANCE
CONSULTANT will perform the scope of services over an assumed 8-month duration upon Notice-toProceed.

PAYMENT
Payment to the CONSULTANT for services performed under this Agreement shall be based on the attached fee proposal (EXHIBIT C) on a time and materials basis, at a not-to-exceed cost limit of the total base scope with the optional task if selected by the CITY. If services extend by amendment beyond the assumed 8-month duration and/or beyond December , , rates may be subject to adjustment based on either an updated Submittal of Qualifications Statement for Periodic and On-Call Water and Wastewater Professional Design Services or the CONSULTANT’s fee schedule for California as of January , E.

ASSUMPTIONS AND CLARIFICATIONS
• DELIVERABLE USE AND REUSE. Any reuse of completed documents or use of partially completed documents without written verification or concurrence by CONSULTANT for the specific purposes intended will be at the CITY’s sole risk and without liability or legal exposure to CONSULTANT. CONSULTANT’s instruments of service hereunder are the printed hard copy of technical memorandums and reports issued for the Project, whereas electronic media, including Computer Aided Design and Drafting (CADD) or modeling files, are tools for their preparation. As a convenience to the CITY, CONSULTANT shall furnish to the CITY both printed hard copies and electronic media (where scoped). In the event of a conflict in their content, the printed hard copies shall take precedence over the electronic media. Because data stored in electronic media form can be altered, inadvertently, it is agreed that the CITY shall hold CONSULTANT harmless from liability arising out of changes or modifications to CONSULTANT’s data in electronic media form in the CITY’s possession or released to others by the CITY.
• STANDARD OF CARE. CONSULTANT shall perform the services required hereunder in accordance with the prevailing engineering standard of care by exercising the skill and ability ordinarily required of engineers performing the same or similar services, under the same or similar circumstances, in the State of California. Additionally, CONSULTANT shall not be

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responsible for acts and decisions of third parties, including governmental agencies, other than CONSULTANT’s subconsultants, that impact project completion and/or success. • CITY-PROVIDED INFORMATION AND SERVICES. The CITY shall furnish CONSULTANT available studies, reports and other data pertinent to CONSULTANT’s services; obtain or authorize CONSULTANT to obtain or provide additional reports and data as required; furnish to CONSULTANT services of others required for the performance of CONSULTANT’s services hereunder, and CONSULTANT shall be entitled to use and rely upon all such information and services provided by the CITY or others in performing CONSULTANT’s services under this Agreement.
• ACCESS. The CITY shall arrange for access to and make all provisions for CONSULTANT to enter upon public and private property as required for CONSULTANT to perform services hereunder.
• ESTIMATES AND PROJECTIONS. In providing opinions of cost, financial analyses, economic feasibility projections, schedules, and quantity and/or quality estimates for potential projects, CONSULTANT has no control over cost or price of labor and material; unknown or latent conditions of existing equipment or structures that may affect operation and maintenance costs; competitive bidding procedures and market conditions; time or quality of performance of third parties; quality, type, management, or direction of operating personnel; the way the CITY’s plant(s) and/or associated processes are operated and/or maintained; and other economic and operational factors that may materially affect the ultimate project elements, including, but not limited to, cost or schedule. Therefore, CONSULTANT makes no warranty that the CITY’s actual project costs, financial aspects, economic feasibility, schedules, and/or quantities or quality realized will not vary from CONSULTANT’s opinions, analyses, projections, or estimates.
• THIRD PARTIES. The services to be performed by CONSULTANT are intended solely for the benefit of the CITY. No person or entity not a signatory to this Agreement shall be entitled to rely on CONSULTANT’s performance of its services hereunder, and no right to assert a claim against CONSULTANT by assignment of indemnity rights or otherwise shall accrue to a third party as a result of this Agreement of the performance of CONSULTANT’s services hereunder.

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CITY OF WATSONVILLE | INITIAL SITE EVALUATION | 1509 FREEDOM BOULEVARD ͮ | JUNE ͮͬͭʹ| FINAL
Figure ͭ Recommended Demolition Plan
FIGURE 1: Freedom Site Feasibility Study Scope of Services Page 248 of 705 Kleinfelder Rincon BEI
Principal-InCharge QA/QC Project
Manager
Wells & Pump
Station Engineer
Project
Engineer
Structural
QA/QC
Lead
Structural
Funding
Engineer
Senior
Professional
Project
Professional
Lead Project
Professional
Project
Professional Professional Senior Professional
Project
Professional
Lead Project
Professional
Task Task Description $315 $273 $293 $273 $230 $315 $273 $293 $198 $125 $13 1 Project Administration

1.1 Project Coordination and Monitoring - - 18 - - - - - - 18 36 7,524 $ 468 $ - $ 1,500 $ - $ 1,320 $ 11,094 $

1.2 Kickoff and Project Progress Meetings - 5 15 - 15 - - - - - 35 9,210 $ 455 $ 800 $ 800 $ - $ 2,200 $ 13,765 $ TASK 1 TOTAL - 5 33 - 15 - - - - 18 71 16,734 $ 923 $ 800 $ 2,300 $ - $ 3,520 $ 24,859 $ 2 Phase 1 Geotechnical Investigation

2.1 Pre-Field Activities - - - - - - - - - - - - $ - $ - $ 2,500 $ - $ - $ 2,750 $

2.2 Field Investigation and Laboratory Testing - - - - - - 2 - - - 2 546 $ 26 $ - $ 25,400 $ - $ - $ 28,512 $

2.3 Data Evaluation and Geotechnical Letter Report - 2 4 - 4 2 4 - - - 16 4,360 $ 208 $ - $ 10,000 $ - $ - $ 15,568 $ TASK 2 TOTAL - 2 4 - 4 2 6 - - - 18 4,906 $ 234 $ - $ 37,900 $ - $ - $ 46,830 $ 3 Conceptual Development of Project Components

3.1 Potable Water Storage Tanks - 4 4 - 8 8 16 - - - 40 10,992 $ 520 $ - $ - $ - $ - $ 11,512 $

3.2 Potable Water Wells - 2 4 24 16 - - - - - 46 11,950 $ 598 $ - $ - $ - $ 880 $ 13,516 $

3.3 New and Existing Booster Pump Station - 4 4 16 16 2 4 - - - 46 12,034 $ 598 $ - $ - $ - $ 440 $ 13,116 $

3.4 Site Electrical Equipment and Standby Generator - - 2 - 2 - - - - - 4 1,046 $ 52 $ - $ - $ - $ 3,520 $ 4,970 $

3.5 Utility Corridors and General Site Considerations 2 4 8 - 24 2 4 - - - 44 11,308 $ 572 $ - $ - $ - $ 440 $ 12,364 $

3.6 Conceptual Site Layout Sketches - 2 8 - 16 2 2 - 16 - 46 10,914 $ 598 $ - $ - $ - $ 1,760 $ 13,448 $ TASK 3 TOTAL 2 16 30 40 82 14 26 - 16 - 226 58,244 $ 2,938 $ - $ - $ - $ 7,040 $ 68,926 $ 4 Environmental Constraints and Considerations Analysis

4.1 Environmental Constraints and Considerations Analysis - - 8 - 8 - - - - - 16 4,184 $ 208 $ - $ - $ 17,470 $ - $ 23,609 $ TASK 4 TOTAL - - 8 - 8 - - - - - 16 4,184 $ 208 $ - $ - $ 17,470 $ - $ 23,609 $ 5 Preliminary Funding Strategy

5.1 Funding Opportunities Identification and Preliminary Approach - - 8 - - - - 40 48 14,064 $ 624 $ - $ - $ 1,000 $ - $ 15,788 $ TASK 5 TOTAL - - 8 - - - - 40 - - 48 14,064 $ 624 $ $ - - $ $ 1,000 $ - $ 15,788 6 Site Feasibility Study Tech Memo & Conceptual Cost Estimate

6.1 Draft and Final Site Feasibility Study TM 2 4 12 4 24 2 4 4 8 8 72 17,328 $ 936 $ 150 $ - $ - $ 1,760 $ 20,350 $

6.2 Preliminary Opinion of Probable Construction Costs - 2 2 32 12 2 4 - - - 54 14,350 $ 702 $ - $ - $ - $ 1,760 $ 16,988 $ TASK 6 TOTAL 2 6 14 36 36 4 8 4 8 8 126 31,678 $ 1,638 $ 150 $ - $ - $ 3,520 $ 37,338 $ 7 OPTIONAL - Additional Geotechnical and Support Services

7.1 Additional Geotechnical Investigation Activities - - 2 - 2 - 2 - - - 6 1,592 $ 78 $ - $ 25,000 $ - $ - $ 29,170 $

7.2 Additional Support Services - - 4 - 8 - - - - - 12 3,012 $ 156 $ - $ - $ - $ - $ 3,168 $ OPTIONAL TASK 7 TOTAL - - 6 - 10 - 2 - - - 18 4,604 $ 234 $ - $ 25,000 $ - $ $ - $ 32,338 Total (Base Scope) 4 29 97 76 145 20 40 44 24 26 505 129,810 $ 6,565 $ 950 $ 40,200 $ 18,470 $ 14,080 $ $ 217,350 4 29 103 76 155 20 42 44 24 26 523 134,414 $ 6,799$ 950 $ 65,200 $ 18,470 $ 14,080 $ $ 249,688 Notes:
1 Rates and PECE (Note 2) are based on Carollo Engineers, Inc., Fee Schedule in the Submittal of Qualifications Statement for Periodic and On-Call Water and Wastewater Professional Design Services, June 9, 2020. 2 Other direct expenses include mileage traveling to/from meetings at IRS Federal Rate, travel at cost and Project Equipment and Communication Expense (PECE) at $13 per Direct Labor Hour. 3 Includes Subconsultant markup of 10%.

Carollo Engineers, Inc. 1

PROJECT
TOTAL 3
CAD/
Graphics
Tech.

Doc.

Process/
Clerical
Total
Hours

EXHIBIT C

CITY OF WATSONVILLE
1509 FREEDOM BOULEVARD SITE FEASIBILITY STUDY
FEE PROPOSAL (PHASE 1)
Electrical
& Instr.

Total (with Optional Tasks)
Labor
Cost
PECE 2
Expenses 2 Geotech.

Services
Environ.

Permitting
2/28/2023
Attachment B - Exhibit C. Fee Proposal (Phase 1)

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6/7/2023 3:00:49 PM
C:\Program Files\eSCRIBE\TEMP\1504669026\1504669026,,,Purchase of Polymers FY 23 24.docx Agenda Report
MEETING DATE: Tuesday, June 13, 2023
TO: City Council
FROM: INTERIM PUBLIC WORKS & UTILITIES DIRECTOR VIDES

WASTEWATER DIVISION MANAGER SMITH
THROUGH: CITY MANAGER MENDEZ
SUBJECT: AUTHORIZATION OF A PURCHASE ORDER FOR SOLE
SOURCE PURCHASING WITH POLYDYNE, INC. DBA SNF
POLYDYNE, INC. FOR THE PURCHASE OF CHEMICALS

USED IN THE WASTEWATER TREATMENT AND WATER
RECYCLING FACILITIES IN THE AMOUNT OF $572,000 FOR
FISCAL YEAR 2023-2024
RECOMMENDED ACTION:

Adopt a resolution that authorizes the sole source1 purchasing agreement with Polydyne, Inc. dba SNF Polydyne, Inc., for the purchase of flocculant polymer chemicals used by the Wastewater Treatment and Water Recycling Facilities in the amount of $572,000 for Fiscal Year 2023-2024. The contract will not be competitively bid for the reasons set forth in this Report.

BACKGROUND:

Various chemicals in bulk quantities are used in wastewater treatment processes, and flocculant polymers are one such chemical. The purchase order with the current vendor * supplying polymers will expire at the end of the current fiscal year and a new purchasing agreement must be established to ensure uninterrupted supply of this chemical used for biosolids dewatering and recycled water production.

DISCUSSION:

The Wastewater Treatment Division uses flocculant and coagulant chemicals to aid in the filtering out of pollutants to:
 Maintain regulatory compliance for secondary effluent discharges to the Monterey Bay Sanctuary; and

1 Subdivision (c) of § 3-5.210 of the Municipal Code exempts from competitive bidding “Equipment, supplies or nonprofessional services (that) are unique, available only from one (1) source, or sought to match existing equipment or supplies already in use (also known as a sole source purchase).”

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6/7/2023 3:00:49 PM
C:\Program Files\eSCRIBE\TEMP\1504669026\1504669026,,,Purchase of Polymers FY 23 24.docx  Comply with California Title 22 regulations for food safety and water reuse for tertiarytreated recycled wastewater used for direct food crop irrigation.

The polymer flocculants supplied by SNF Polydyne, Inc. are highly specialized as to their propriety chemical properties to work effectively with the advanced treatment processes performed at the facility. The existing equipment used to store and deliver these chemicals has also been standardized to use this chemical.

Bidding of polymer-based flocculants requires an investment of the potential bidder to prove, at their expense, that the product they propose to bid on would work under a wide range of operational conditions. Considerable expertise in laboratory protocol is required to test these chemicals to select a biddable product. SNF Polydyne, Inc. is the only supplier with the special analytical qualifications and willingness to exert that level of expertise to meet our facility’s treatment operations.

In addition, disruption to the delivery of recycled water due to less-than-effective coagulants and flocculants would have a direct negative impact on our local economy and the reputation of the City.

STRATEGIC PLAN:

This purchasing agreement is consistent with Strategic Plan Priority:
3 – Infrastructure & Environment
FINANCIAL IMPACT:

Funds for this purchase are available in the Wastewater Enterprise Fund budget account number 0710-530-7551 ($187,000) and 0710-532-7551 ($385,000) respectively for Wastewater Treatment and Water Recycling in Fiscal Year 2023-2024. The Pajaro Valley Water Management Agency (PVWMA) reimburses expenses for Water Recycling on a quarterly basis.

ALTERNATIVE ACTION:

None currently due to the specialized nature of these chemicals.

ATTACHMENTS AND/OR REFERENCES (If any):

1. SNF Polymer Price Quotation

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polydyneinc.com
Polydyne Inc. • 1 Chemical Plant Road • Riceboro, GA 31323 USA • Tel 800.848.7659 Emailed to: [email protected]
May 12, 2023
Mr. Ryan Smith
City of Watsonville
401 Panabaker Lane
Watsonville, CA 95076
RE: Polymer Price Quotation
Dear Mr. Smith,
Polydyne Inc. is pleased to offer you the following price quotation:

PRODUCT UNIT PRICE PACKAGE
CLARIFLOC™ A-210P $1.54/LB. DELIVERED* 2,300 LB. TOTES
CLARIFLOC™ C-331 $0.231/LB. DELIVERED* 45,000 BULK
CLARIFLOC™ C-378 $1.32/LB. DELIVERED* 2,300 LB. TOTES
45,000 BULK
*Price does not include sales tax. Applicable tax will be added separately on the invoice.

Additional 3.5% Freight/Tariff Surcharge may apply.

Quotation Period: Price shall remain firm for the period July 1, 2023, through June 30, 2024.

Payment Terms: Net 30 days – No Discounts
We thank you for your business. If you have any questions or need any additional information, please feel free to contact Charles Scott, Technical Service Representative at (916) 202-6191 or Sarah Ben-Yoseph, Technical Service Representative at (415) 404-2138. Orders may be placed online at: www.polydyneinc.com or through our Customer Service Department. Your Customer Service Representative is Alexander Smiley. You can reach Mr. Smiley by calling (800) 848-7659 Ext. 8731 or by email to [email protected].

Best regards,
Boyd Stanley
Sr. Vice-President Attachment 1

Page 1 of 1 ends

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Reso No. (CM)
Meeting Date: 061323
SWZ ______ RM ______PWU ______
1 RESOLUTION NO. __________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING SOLE SOURCE PURCHASE FROM
POLYDYNE, INC., DBA SNF POLYDYNE, INC., A CORPORATION, FOR

THE PURCHASE OF POLYMER CHEMICALS USED IN WASTEWATER
TREATMENT AND RECYCLED WATER PRODUCTION FOR FY23/24, IN AN AMOUNT NOT TO EXCEED $572,000 (FUNDED FROM THE

WASTEWATER ENTERPRISE FUND)
WHEREAS, bidding requirements for the purchase of supplies, equipment and nonpersonal contractual services and the sale of personal property are set forth in Chapter 5 of Title 3 of the Municipal Code; and
WHEREAS, subdivision (c) of § 3-5.210 exempts equipment that is unique, available only from one source, or sought to match existing equipment or supplies already in use (also known as a sole source purchase); and
WHEREAS, Polydyne, Inc., dba SNF Polydyne, Inc., presently supplies polymers to the City; and
WHEREAS, there are no other bids to supply polymer chemicals which meet City requirements already in use at the City’s Wastewater Treatment Facility (also known as a sole source purchase).

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

1. Adopting a Resolution authorizing the purchase of polymer chemicals 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.

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Reso No. (CM)
Meeting Date: 061323 2

2. The Council finds that the polymer chemicals used in Wastewater Treatment and Recycled Water Production are available from one source that meet the City’s facility treatment operations (also known as a sole source purchase).

3. This purchase is exempt from the purchasing procedures of Chapter 5 of Title 3 of the Municipal Code as a sole source purchase under subdivision (c) of § 3-5.210 of the Municipal Code.

4. That this purchase from Polydyne, Inc., dba SNF Polydyne, Inc., a corporation, in an amount not to exceed $572,000 for FY22/23, is hereby authorized. ********************************

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6/8/2023 1:03:14 PM
C:\Program Files\eSCRIBE\TEMP\1331098015\1331098015,,,Report - Pilot Project Compost Research GiveLove.docx Agenda Report
MEETING DATE: Tuesday, June 13, 2023
TO: City Council
FROM: INTERIM PUBLIC WORKS & UTILITIES DIRECTOR VIDES

WASTEWATER DIVISION MANAGER SMITH
THROUGH: CITY MANAGER MENDEZ
SUBJECT: LICENSE AGREEMENT WITH GIVELOVE, A CALIFORNIA

NONPROFIT, TO ESTABLISH A PILOT PROJECT FOR

COMPOSTING RESEARCH, LOCATED ON CITY OF

WATSONVILLE PROPERTY AT THE WASTEWATER TREATMENT
FACILITY, 401 PANABAKER ROAD
RECOMMENDED ACTION:

Adopt a resolution approving a license agreement with GiveLove, a California nonprofit corporation, to establish a pilot project for composting research, located on City of Watsonville property at the wastewater treatment facility, 401 Panabaker Road; and authorizing the City Manager to execute said agreement.

BACKGROUND:

The County of Santa Cruz and GiveLove have partnered to implement a 6-month pilot project to test a container-based sanitation collection and treatment model. The purpose of the project is to develop a proof-of-concept for alternative sanitation services that can be incorporated into emergency preparedness, response, and recovery plans. The biosolids drying area located at the City’s wastewater treatment facility is an optimal location for the composting activity of the pilot project for reasons outlined below.

DISCUSSION:

The 2020 CZU fire complex resulted in the destruction of approximately 900 homes and 1,500 total structures. The County Planning Division identified the cost of onsite wastewater treatments systems (“OWTS,” formerly known as septic systems) as the primary impediment to rebuilding efforts. Thus, County leadership engaged with GiveLove, a California nonprofit established in 2010, to design and implement a container-based sanitation pilot project. The purpose of the project is to inform local, County, and State leadership of the viability of alternative sanitation systems.

Container-based sanitation (“CBS,” also commonly referred to as compost toilets) is a lesser-known method of safe sanitation that does not require water to convey excreta (urine

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6/8/2023 1:03:14 PM
C:\Program Files\eSCRIBE\TEMP\1331098015\1331098015,,,Report - Pilot Project Compost Research GiveLove.docx and feces). It follows the same steps of what the World Health Organization calls the sanitation service chain: the steps of containment, collection, transportation, treatment, and final reuse or disposal of end products. These are the same steps wastewater systems use, with the difference being that CBS systems do not use water and underground pipes as a means of conveyance; and a simple composting site is required for treatment instead of a wastewater treatment facility.

GiveLove has been implementing CBS systems for communities in high-needs contexts around the world since the first major earthquake in Haiti in 2010. That disaster resulted in the largest cholera outbreak in the Western hemisphere in recent times. Since then, GiveLove has implemented CBS systems in 7 countries, including the Standing Rock protest in 2017, and most recently in Kampala, Uganda. The February earthquake that affected Turkey has resulted in a sanitation crisis, and GiveLove has been engaged in conversation with other NGOs in the region.

As this relates to Watsonville, the January and March 2023 atmospheric rivers and levee breaches highlighted the vulnerability of the City’s wastewater treatment facility. In March specifically, attention at the local, regional, and State level was paid to the Pajaro River flooding and the potential for the levee along the treatment facility’s perimeter to breach, over-top, or otherwise experience some other mode of failure.

Flooding of this critical infrastructure would result in a catastrophic failure of equipment and several months of work to restore adequate wastewater pumping and treatment operations.

During this time, Watsonville and communities in the Pajaro Valley would experience an immediate public health crisis and long lasting negative environmental consequences.

Focusing back on the pilot project, the original composting site in Bonny Doon that GiveLove proposed to the County required onerous and costly environmental review and permitting. A pivot to host the site on a small (1,000 square feet) of property at the City’s wastewater treatment facility (WWTF) significantly removes these permitting barriers in 2 ways:

1. Composting at the facility is “categorically exempt” under CEQA because the WWTF holds a Coastal Conditional Use Permit for the land use and project type. The pilot project is complimentary to the description in the existing land use permit. The project can be considered an existing use at an existing facility that is a publicly (City) owned utility used to provide public services.

2. A Regional Water Quality Control Board waste discharge requirement (WDR) permit would not be required because the composting activity will be co-located at the biosolids drying area at the WWTF, and therefore will be covered under the facility’s existing operating permit.

In addition, Monterey Air Resources District staff have confirmed that an air permit is not required for this small pilot project. Last, the project falls within a Calrecycle notification tier for a research composting operation. No other regulatory approvals are required.

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C:\Program Files\eSCRIBE\TEMP\1331098015\1331098015,,,Report - Pilot Project Compost Research GiveLove.docx Collection of the toilet material in primary and secondary containment will occur bi-monthly (once every other week) at the County’s Ben Lomond solid waste transfer station. The material will be transported to the WWTF in a rented cargo van, and GiveLove staff will manage the materials and composting on-site. In addition to the 1,000 square feet of paved space at the biosolids drying area, the city will provide a de minimis amount of potable water for washing hands and tools, and for wetting down the compost piles if/when needed.

The benefit to Watsonville after this 6-month pilot project will be a technical report of findings that could be used to inform a first-of-its-kind emergency preparedness, response, and recovery sanitation plan that can be implemented should the city ever experience a catastrophic failure of its critical wastewater infrastructure.

It should be noted there is precedence for similar agreements at the WWTF. For example, the City executed a lease agreement with UCSC to establish WaterLab, a teaching and research facility in June 2013 (Resolution No. 114-13) located in a building adjacent to the Water Resources Center. This current pilot project only requires the use of land and not a building, so a less complicated license agreement is suitable for this purpose. Therefore, staff recommends approval of a license agreement with GiveLove.

Although the duration of the pilot project is 6 months, the license agreement is written for 10 months (with options to extend) to allow for mobilization and demobilization activities, including time to allow for adequate composting if needed.

STRATEGIC PLAN:

This agreement is consistent with the Strategic Plan Priority:
3 – Infrastructure & Environment
It also has synergies with these other Priorities:
1 – Housing
2 – Community Engagement & Well-being
6 – Public Safety
7 – Efficient & High Performing Government
FINANCIAL IMPACT:

There is no financial impact other than the cost of a de minimis amount of potable water and staff time required to manage the agreement.

ALTERNATIVE ACTION:

The City Council could elect not to approve the proposed agreement.

ATTACHMENTS AND/OR REFERENCES (If any):

None.

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Reso No. (CM)
Meeting Date: 061323 SWZ ______ RM ______ PWU ______ 1
RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE APPROVING A TEN-MONTH LICENSE AGREEMENT, CONSISTING OF TWO (2)

TWELVE-MONTH RENEWAL TERMS BETWEEN THE CITY OF WATSONVILLE AND

GIVELOVE, A CALIFORNIA NONPROFIT CORPORATION, FOR THE USE OF REAL PROPERTY LOCATED AT 401 PANABAKER ROAD, WATSONVILLE, CALIFORNIA, COMMENCING ON JULY 1, 2023, AND ENDING MAY 1, 2024; AND AUTHORIZING

AND DIRECTING THE CITY MANAGER TO EXECUTE SAME

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 153(b) – Class 1, in that adopting a Resolution approving a License between the City of Watsonville and GiveLove to perform composting at the wastewater treatment facility is categorically exempt because the facility holds a Coastal Conditional Use Permit for the land use and project type. The pilot project is complimentary to the description in the existing land use permit. The project can be considered an existing use at an existing facility that is a publicly (City) owned utility used to provide public services.

2. That the ten-month License between the City of Watsonville and GiveLove, a California nonprofit, for the use of 1,000 square feet of City owned property more or less located at 401 Panabaker Road, Watsonville, California commencing July 1, 2023, and ending May 1, 2024, a copy of which Agreement is attached hereto and incorporated herein by this reference, is hereby approved.

3. That the City Manager is hereby authorized and directed to execute such Agreement for the original term and if properly exercised, the two (2) twelve-month option terms for and on behalf of the City of Watsonville, in the form attached hereto with minor revisions that may be approved by the City Manager and the City Attorney.

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Reso No. (CM)
Meeting Date: 061323 2
**************************************

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1 4874-2347-0949 v1

LICENSE AGREEMENT
(401 Panabaker Road)
Portion of Biosolids Drying
Area
(APN 0525711)
THIS LICENSE AGREEMENT (“Agreement”) is made and entered into as of June 13, 2023 (“Effective Date”) by and between THE CITY OF WATSONVILLE, a municipal corporation (“City”) and GIVELOVE, a California non-profit corporation (“Licensee”).

RECITALS
A. City owns that certain property located at 401 Panabaker Road, Watsonville, California, commonly known as the Wastewater Treatment Facility (“Premises”). City would like to allow Licensee to use, pursuant to the terms and conditions stated herein, an approximately 1,000 square foot paved area (the “Site”) located on the Premises. The Premises and Site are described more particularly in Exhibit A, attached hereto and incorporated herein by reference.

B. City is willing to enter into this agreement with the Licensee to perform composting activities on Premises for the initial term of ten months and authorizes the City Manager to administratively grant up to two (2) twelve-month extensions, on the terms and conditions set forth herein.

C. City would benefit from entering into this Agreement by receiving a technical report of findings from Licensee at the end of the initial ten month term. This report will inform a unique disaster preparedness, response, and recovery plan for the City.

AGREEMENT
NOW, THEREFORE, in consideration of the promises and of the mutual covenants and agreements herein set forth, and in reliance on the above Recitals, City and Licensee hereby agree as follows:

1. Recitals. The above Recitals are true and correct and incorporated herein to the terms of the Agreement.

2. License.
a. Licensed Use. Subject to the terms and conditions of this Agreement, City grants to Licensee a non-exclusive license for ingress and egress to, and to use the Premises solely for composting activities such uses being hereafter referred to as the "Licensed Use," and for no other use. Licensee shall have limited access to the Premises during the hours of 7:00 a.m. to 5:00 p.m. (“Approved Hours”). Licensee acknowledges that neither City nor any agent of City has made any representation or warranty with respect to the suitability of the Site for the Licensed Use.

Licensee shall use the Site in its "as is" condition; City shall have no obligation to improve the Site DocuSign Envelope ID: 47ABE546-09C4-477F-AD92-58C04323569E

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2 4874-2347-0949 v1
for the Licensed Use.
b. Entry to Site Limited to Licensee. Entry to the Site is limited to Licensee, its employees, volunteers, contractors or subcontractors, and only for the Licensed Use. All other guests and invitees of Licensee require City's written permission before entry to the Site. c. Preservation of Site. Licensee shall take all reasonable measures to prevent materials, waste, or debris from its Licensed Use, including any hazardous materials. At all times during the Term of this Agreement, Licensee shall maintain the Site in a neat and clean condition, to the satisfaction of City. In the event the Site is not maintained to the City's satisfaction, upon notice from City, Licensee shall undertake maintenance activities to the satisfaction of City. d. No Use of City Facilities. Licensee shall not have access to the facilities located on the Premises for its Licensed Use other than on the Site. Nor shall Licensee, its employees, volunteers, contractors, or subcontractors have use of any City tools, equipment, or other materials located in or on the Premises for the Licensed Use. e. Prohibited Use. Licensee shall not do or permit anything to be done in or about the Site nor bring or keep anything therein which will in any way increase the existing rate of or affect or cause a cancellation of any fire or other insurance covering the Premises or the Site or any of its contents. Licensee shall not store upon the Site, or permit, orsuffer the storage upon the Site of, any perishable goods, flammable materials, explosives or other dangerous materials or any hazardous materials (as defined from time to time by the appropriate governmental agencies).

Licensee agrees that it will use the Site in such manner as not to interfere with the daily operation of the Premises. Licensee shall neither use nor allow the Site or the Premises to be used for any unlawful or objectionable purpose, nor cause, maintain or permit any nuisance or waste in, on or about any portion of the Premises.
f. Compliance with Law. Licensee shall not use or allow anything to be done in or about the Site or the Premises which will in any way conflict with any law, ordinance or governmental regulation or requirement of any board of fire underwriters or any duly constituted public authority now in force or hereafter enacted or promulgated affecting the use of the Site, and shall promptly comply with all such laws or requirements at its sole cost and expense.

3. Term. Subject to the terms and conditions of this Agreement, the license granted in Section 1 shall commence on July 1, 2023 (“Commencement Date”) and shall continue until and expire on May 1, 2024 (“Termination Date”) unless administratively extended by the City Manager for up to two (2), twelve-month extensions.

4. Consideration. In consideration of the Licensed Use, the Licensee shall pay to City $1.00 (One Dollar) for the Term of the Agreement, due on the Commencement Date.

5. Use of Site. Licensee's use of the Site pursuant to this Agreement shall be at its sole risk and expense, and except as otherwise expressly provided herein, City shall not be required to provide any services (including, without limitation, lighting, utilities, maintenance or security services) in connection with such Licensed Use.

DocuSign Envelope ID: 47ABE546-09C4-477F-AD92-58C04323569E

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6. Restoration of Site. At the conclusion of this Agreement and on or before the Termination Date, Licensee shall, at its sole cost and expense and with no contribution by City, restore the Site to the same condition found on the Commencement Date, to the satisfaction of City.

Licensee shall, at its sole cost and expense and with no contribution by City, remove the any and all equipment brought or stored on the Site, including but not limited to building materials, tools, and personal property. Any items left by Licensee after the Termination Date may be removed and disposed of by City with no further notice to Licensee. In the event Licensee does not restore the Site to the satisfaction of City, City may choose to perform any necessary repair or restoration of the Site and seek reimbursement from Licensee for the reasonable cost of the repair or restoration.

7. Indemnification by Licensee; Waiver
a. Indemnity. Licensee shall indemnify, defend (with counsel selected by City) and hold City harmless from any loss, claim, damage or expense (including attorneys' fees and costs) including claims for bodily injury (including death) or property damage, resulting directly or indirectly from Licensee, or Licensee's employees', volunteers', contractors', subcontractors' or invitees' (the "Indemnifying Party"), use of: the Premises, the Site or personal property, located therein; or from reLicense of or exposure to toxic or hazardous materials brought onto or created on the Premises by the Indemnifying Party as a result of the Licensed Use, including any liability for injury to the person (including death) or property of Licensee, its contractors, subcontractors, representatives, agents, officers, employees, invitees or trespassers, except to the extent such loss, claim, damage or expense results from City's sole negligence or willful misconduct.

Furthermore, Licensee shall indemnify and defend (with counsel selected by City) and hold City harmless from any loss, claim, damage or expense (including attorneys' fees and costs) resulting from any claims or actions brought by any governmental or regulatory agency for violations of any laws, statutes, regulations, or standards arising from, resulting from, or in any way connected with the use, presence, or reLicense of any hazardous materials brought onto or created on the Premises by the Indemnifying Party as a result of the Licensed Use. Licensee's obligations hereunder shall survive the expiration or termination of this Agreement, if the incident requiring such defense and indemnity occurred during the Term of this Agreement. b. Waiver. Licensee, as a material part of the consideration rendered to City in entering into this Agreement, hereby waives all claims against City for damages or loss to the Railcar, any equipment brought or stored onto the Site by Licensee or its contractors or subcontractors, goods, wares and merchandise, in upon and about the Premises or the Site, and for death of or injury to Licensee, its agents, employees, contractors, subcontractors, representatives, or invitees in or about the Premises or the Site from any cause except for City's sole negligence or willful misconduct.

8. Alterations. Licensee shall make no alterations, additions or improvements to the Site or any part thereof, except as shall be required of Licensee under the provisions of Sections 5 and 8 of this Agreement.

9. Repairs and Maintenance; Services. During the Term, Licensee shall, at its sole cost and expense, maintain the Site in an appropriate condition for the Licensed Use and provide such services as may be reasonably necessary in connection therewith. City shall have no obligation whatsoever to maintain or repair the Premises, including the Site, in connection with the Licensed Use.

DocuSign Envelope ID: 47ABE546-09C4-477F-AD92-58C04323569E

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10. Assignment and Sublicensing. Licensee shall not assign or otherwise transfer its rights hereunder without the prior written consent of City. The terms and conditions of this Agreement shall be binding on and shall inure to the benefit of the parties and their respective heirs, executors, administrators, guardians, custodians, successors and assigns.

11. Notices. All notices, demands, requests, advices or designations that may be or are required to be given by either party to the other hereunder shall be in writing. All notices hereunder shall be sufficiently given, made or delivered if served personally or by national overnight courier service or if sent by United States certified or registered mail, postage prepaid, addressed as follows:

City of Watsonville
Attention:

Ryan Smith, Wastewater Division Manager
500 Clearwater Lane
Watsonville, CA 95076
And to Licensee addressed as follows:

GiveLove
Attention:

Alisa Keesey, Director
1006 Escalona Drive
Santa Cruz, CA 95060
Each notice referred to in this Section shall be deemed to have been given on the third business day following the date of such mailing (or any earlier date evidenced by a receipt evidencing delivery from such national courier service or United States Postal Service) or immediately if personally delivered to the person to whose attention notices are to be directed.

Either party may change its address for notices by giving notice to the other as above provided.

12. Insurance. Licensee’s responsibility for the Premises begins immediately upon the Commencement Date and Licensee, at its sole cost and expense, and at no cost to City, shall provide and maintain in full force and effect during the entire term of this License insurance coverage in an amount(s) and in a form acceptable to City as set forth in Exhibit B attached hereto and incorporated herein by reference. Said policies shall be maintained with respect to Licensee’s employees, if any, and all vehicles operated on the Premises. The policies shall include the required endorsements, certificates of insurance and coverage verifications as described in Exhibit B.

Licensee also agrees to secure renter’s liability insurance.

13. Fire Insurance on Site. City shall maintain insurance (or self-insurance through City’s joint pool coverage plan) covering the Site.

14. Defaults. The failure of Licensee to observe or perform any of the covenants or provisions of this Agreement to be observed or performed by Licensee, where such failure shall continue for a period of five (5) days after notice thereof by City to Licensee, shall constitute an DocuSign Envelope ID: 47ABE546-09C4-477F-AD92-58C04323569E

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"Event of Default."

15. Remedies. Upon the occurrence of any Event of Default. City may, at any time thereafter, without further notice to Licensee and without limiting City in the exercise of any right or remedy which City may have at law or in equity, terminate this Agreement.

16. Hazardous Materials.
a. Compliance with Laws. Licensee shall not cause or permit any Hazardous Material (as defined below) to be brought upon, kept or used in or about the Site by Licensee, its agents, employees, contractors or invitees.
b. Termination of License. City shall have the right to terminate the License in City’s sole and absolute discretion in the event that (i) any anticipated use of the Premises by Licensee involves the generation or storage, use, treatment, disposal or release of Hazardous Material in a manner or for a purpose prohibited or regulated by any governmental agency, authority or Hazardous Materials laws; (ii) Licensee has been required by any lender or governmental authority to take remedial action in connection with Hazardous Material contaminating the Premises, if the contamination resulted from Licensee’s action or use of the Premises; or (iii) Licensee is subject to an enforcement order issued by any governmental authority in connection with the reLicense, use, disposal or storage of a Hazardous Material on the Premises. c. Hazardous Materials Defined. The term “Hazardous Material(s)” shall mean any toxic or hazardous substance, material or waste or any pollutant or contaminant or infectious or radioactive material, including but not limited to, those substances, materials or wastes regulated now or in the future under any of the following statutes or regulations and any and all of those substances included within the definitions of “hazardous substances,” “hazardous waste,” “hazardous chemical substance or mixture,” “imminently hazardous chemical substance or mixture,” “ toxic substances,” “hazardous air pollutant,” “toxic pollutant” or “solid waste” in the (a) “CERCLA” or “Superfund” as amended by SARA, 42 U.S.C. Sec. 9601 et seq., (b) RCRA, 42 U.S.C. Sec. 6901 et seq., (c) CWA., 33 U.S.C. Sec. 1251 et seq., (d) CAA, 42 U.S.C. 78401 et seq., (e) TSCA, 15 U.S.C. Sec. 2601 et seq., (f) The Refuse Act of 1899, 33 U.S.C. Sec. 407, (g) OSHA, 29 U.S.C. 651 et seq. (h) Hazardous Materials Transportation Act, 49 U.S.C. Sec. 1801 et seq., (i) USDOT Table (40 CFR Part 302 and amendments) or the EPA Table (40 CFR Part 302 and amendments), (j) California Superfund, Cal. Health & Safety Code Sec. 25300 et seq., (k) Cal.

Hazardous Waste Control Act, Cal. Health & Safety Code Section 25100 et seq., (l) Porter-Cologne Act, Cal. Water Code Sec. 13000 et seq., (m) Hazardous Waste Disposal Land Use Law, Cal.

Health & Safety Code Sec. 25220 et seq., (n) “Proposition 65,” Cal. Health and Safety Code Sec. 25249.5 et seq., (o) Hazardous Substances Underground Storage Tank Law, Cal. Health & Safety Code Sec. 25280 et seq., (p) California Hazardous Substance Act, Cal. Health & Safety Code Sec. 28740 et seq., (q) Air Resources Law, Cal. Health & Safety Code Sec. 39000 et seq., (r) Hazardous Materials release Response Plans and Inventory, Cal. Health & Safety Code Secs. 25500-25541, (s) TCPA, Cal. Health and Safety Code Secs. 25208 et seq., and (t) regulations promulgated pursuant to said laws or any replacement thereof, or as similar terms are defined in the federal, state and local laws, statutes, regulations, orders or rules. Hazardous Materials shall also mean any and all other substances, materials and wastes which are, or in the future become regulated under applicable local, state or federal law for the protection of health or the environment, or which are classified as hazardous or toxic substances, materials or wastes, pollutants or contaminants, as DocuSign Envelope ID: 47ABE546-09C4-477F-AD92-58C04323569E

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defined, listed or regulated by any federal, state or local law, regulation or order or by common law decision, including, without limitation, (i) trichloroethylene, tetracholoethylene, perchloroethylene and other chlorinated solvents, (ii) any petroleum products or fractions thereof, (iii) asbestos, (iv) polychlorinated biphenyls, (v) flammable explosives, (vi) urea formaldehyde, and (vii) radioactive materials and waste.
d. City’s Right to Perform Tests. At any time prior to the expiration of the License Term, City shall have the right to enter upon the Premises in order to conduct tests of water and soil and to deliver to Licensee the results of such tests to demonstrate that levels of any Hazardous Materials in excess of permissible levels has occurred as a result of Licensee’s use of the Premises.

Licensee shall be solely responsible for and shall indemnify, protect, defend and hold City harmless from and against all claims, costs and liabilities including actual attorneys’ fees and costs arising out of or in connection with any removal, remediation, cleanup, restoration and materials required hereunder to return the Premises and any other property of whatever nature to their condition existing prior to the appearance of the Hazardous Materials. The testing shall be at Licensee’s expense if City has a reasonable basis for suspecting and confirms the presence of Hazardous Materials in the soil or surface or groundwater in on, under, or about the Premises or the Project, which has been caused by or resulted from the activities of Licensee, its agents, employees, contractors or invitees.
e. Hazardous Materials Indemnity. Licensee shall indemnify, defend (by counsel reasonably acceptable to City), protect and hold the City harmless from and against any and all claims, liabilities, penalties, forfeitures, losses and/or expenses, including, without limitation, diminution in value of the Premises, damages for the loss or restriction on use of the rentable or usable space or of any amenity of the Premises, damages arising from any adverse impact or marketing of the Premises and sums paid in settlement of claims, response costs, cleanup costs, site assessment costs, attorneys’ fees, consultant and expert fees, judgments, administrative rulings or orders, fines, costs of death of or injury to any person or damage to any property whatsoever (including, without limitation, groundwater, sewer systems and atmosphere), arising from, or caused or resulting, either prior to or during the License Term, in whole or in part, directly or indirectly, by the presence or discharge in, on, under or about the Premises by Licensee, Licensee’s agents, employees, licensees or invitees or at Licensee’s direction, of Hazardous Material, or by Licensee’s failure to comply with any Hazardous Materials Law, whether knowingly or by strict liability. Licensee’s indemnification obligations shall include, without limitation, and whether foreseeable or unforeseeable, all costs of any required or necessary Hazardous Materials management plan, investigation, repairs, cleanup or detoxification or decontamination of the Premises , and the presence and implementation of any closure, remedial action or other required plans, and shall survive the expiration of or early termination of the License Term. For purposes of the indemnity provided herein, any acts or omissions of Licensee or its employees, agents, customers, subleases, assignees, contractors or subcontractors of Licensee (whether or not they are negligent, intentional, willful or unlawful) shall be strictly attributable to Licensee.

17. Utilities. City will provide potable water to the Site, at no cost to Licensee.

18. Miscellaneous.
a. Amendments. No provision of this Agreement may be amended or added to except by an agreement in writing signed by the parties hereto or their respective successors in interest.

DocuSign Envelope ID: 47ABE546-09C4-477F-AD92-58C04323569E

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7 4874-2347-0949 v1
b. Attorneys' Fees. In the event any action, proceeding, mediation or arbitration is brought by either party against the other under this Agreement, the prevailing party shall be entitled to recover from the other party all costs and expenses including the fees of its attorneys in such action or proceeding in such amount as the court, the mediators or the arbitrators, as the case may be, may adjudge reasonable.
c. Interpretation. Unless the context clearly requires otherwise, (a) the plural and singular numbers shall each be deemed to include the other; (b) the masculine, feminine, and neuter genders shall each be deemed to include the others; (c) "shall," "will," or "agrees" are mandatory, and "may" is permissive; (d) "or" is not exclusive; (e) "includes" and "including" are not limiting; and (f) "days" means calendar days unless specifically provided otherwise. d. Choice of Law: Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action or proceeding instituted arising out of or related to this Agreement shall be filed in a court of competent jurisdiction in San Mateo County, California.
e. Prior Agreements. This Agreement contains all of the agreements of the parties hereto with respect to the Licensed Use, and no prior or contemporaneous agreements or understandings pertaining to any such matters shall be effective for any purpose, except for contemporaneous written agreements, specifically referring to this Agreement, signed by both parties.
f. Counterparts. This Agreement may be executed in any number of counterparts, provided each of the parties hereto executes at least one counterpart; each such counterpart hereof shall be deemed to be an original instrument, but allsuch counterparts, together, shall constitute but one Agreement.
g. Recordation. This Agreement shall not be recorded.
h. No Interest in Real Property. The parties agree that this Agreement does not and shall not be deemed to (i) constitute a License or a conveyance of personal or real property by City, (ii) confer upon Licensee any right, title, estate or interest in the Site or (iii) create any relationship between City and Licensee other than as licensee and licensor. This Agreement grants to Licensee only a personal privilege to have access to the Site for the purposes, under the terms and upon the conditions granted and provided for hereunder. Licensee’s rights pursuant to this Agreement are personal only to Licensee as the licensee named herein and Licensee’s agents, contractors or employees and is not assignable or transferable by Licensee by operation of law or otherwise. [Signatures follow on the next
page]
DocuSign Envelope ID: 47ABE546-09C4-477F-AD92-58C04323569E

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8 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

CITY OF WATSONVILLE, CALIFORNIA, a chartered California municipal corporation
Dated: ________________________
APPROVED AS TO FORM: By:

Samantha W. Zutler
City Attorney
Rene Mendez
City Manager
275 Main Street #400
Watsonville, CA 95076
Telephone: (831) 768-3010
“CITY”

GIVELOVE

CALIFORNIA NONPROFIT CORPORATION
Dated:_________________________
By:
(Signature of Person executing the Agreement on behalf of Licensee)
Name: Alisa Keesey
Title: Director
Local Address: 1006 Escalona Drive
Santa Cruz, CA 95060
Email Address: [email protected]
Telephone: ( 831 ) 325-3187
Fax: ( ) N/A
“LICENSEE”
DocuSign Envelope ID: 47ABE546-09C4-477F-AD92-58C04323569E 5/26/2023 | 8:11 AM PDT

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9 EXHIBIT A

SITE - SITE PLAN
(SITE HIGHLIGHTED IN YELLOW)
DocuSign Envelope ID: 47ABE546-09C4-477F-AD92-58C04323569E

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6/7/2023 2:15:57 PM
C:\Program Files\eSCRIBE\TEMP\14155456338\14155456338,,,FHWA EV CHARGER GRANT.docx Agenda Report
MEETING DATE: Tuesday, June 13, 2023
TO: City Council
FROM: INTERIM PUBLIC WORKS & UTILITIES DIRECTOR VIDES

ENVIRONMENTAL PROJECTS MANAGER YASBEK

ENVIRONMENTAL SUSTAINABILITY MANAGER MCCLOUD
THROUGH: CITY MANAGER MENDEZ
SUBJECT: AUTHORIZATION TO SUBMIT AS A CO-APPLICANT FOR THE

MONTEREY BAY REGION EQUITABLE EV CHARGING

PROJECTS GRANT APPLICATION UNDER THE FEDERAL

HIGHWAY ADMINISTRATION CHARGING AND FUELING

INFRASTRUCTURE DISCRETIONARY GRANT COMMUNITY

PROGRAM
RECOMMENDED ACTION:

Adopt a Resolution authorizing the City Manager to apply for funds from the Federal Highways Administration Charging and Fueling Infrastructure Discretionary Grant Community Program as a co-applicant, to fund the installation of publicly available level 2 and DC fast charging at city owned facilities.

BACKGROUND:

The city, along with the counties of San Benito, Monterey, and Santa Cruz, and the City of Santa Cruz formed a Regional Climate Project Working Group (RCPWG) with grant funding from 3CE. The RCPWG’s two main priorities are to identify and apply for fleet and building electrification grants. Supporting agencies that work with the RCPWG include AMBAG and Ecology Action. The RCPWG has hired Grant Management Associates (GMA) to identify and apply for grants on behalf of the RCPWG. The grants identified are larger than the grants the City is typically able to apply for as a single entity.

This resolution will authorize the City Manager to apply as a co-applicant with the Association of Monterey Bay Area Governments (AMBAG), for a Federal Highway Administration (FHWA) Grant through the Department of Transportation (DOT) for electric vehicle charging infrastructure in the Monterey Bay Area in the amount of $15 million of which the City will be eligible to receive approximately $1.2 million.

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6/7/2023 2:15:57 PM
C:\Program Files\eSCRIBE\TEMP\14155456338\14155456338,,,FHWA EV CHARGER GRANT.docx DISCUSSION:

The Federal Highway Administration Grant will bring an investment of $15 million in electric vehicle (EV) charging infrastructure to the region. This grant complements the Central Coast Resilient DC Fast Charging Project which is focused on fast charging along transportation corridors. The FHWA grant application is focused on equitable EV charging to allow residents of rental and multifamily units to have access to charging that is close to where they live.

Regional representation is critical in the application process to meet key criteria and requirements for consideration of funding awards. If the grant is awarded, staff will seek Council approval to authorize the City Manager to negotiate and execute a grant agreement with AMBAG and DOT.

There are no CEQA considerations with the city becoming a co-applicant. Each charging station site will be permitted and comply with all environmental regulations.

STRATEGIC PLAN:

Applying for this grant is consistent with the City’s Climate Action and Adaptation Plan and Section 3 of the Strategic Plan – Infrastructure and Environment.

FINANCIAL IMPACT:

There is no financial impact to being a co-applicant.

ALTERNATIVE ACTION:

The city may choose to not be a co-applicant. The grant application is unlikely to be successful without the collaborative regional approach that is planned.

ATTACHMENT(S):
1) Federal Highway Administration – Notice of Funding Opportunity

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U.S. DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
Notice of Funding Opportunity for Fiscal Year (FY) 2022 and FY 2023 for the U.S.

Department of Transportation’s Charging and Fueling Infrastructure Discretionary Grant Opportunity
AGENCY: U.S. Department of Transportation (DOT), Federal Highway Administration (FHWA).

ACTION: Notice of Funding Opportunity (NOFO) Number 693JJ323NF00004 Charging and Fueling Infrastructure Discretionary Grant Opportunity SUMMARY: The purpose of this notice is to solicit applications for grants totaling of up to $700 million under the Charging and Fueling Infrastructure Discretionary Grant Program (CFI Program), established under the Infrastructure Investment and Jobs Act (“Bipartisan Infrastructure Law” or “BIL”). The $700 million is divided into two separate grant categories:
(1) up to $350 million for the Community Charging and Fueling Program Grants (Community Program), to strategically deploy electric vehicle (EV) charging infrastructure, hydrogen fueling infrastructure, propane fueling infrastructure, and natural gas fueling infrastructure located on public roads or in other publicly accessible1 locations; and (2) up to $350 million for the Alternative Fuel Corridor Grants (Corridor Program), to strategically deploy charging and 1 Publicly accessible means the equipment is available to the public without restriction. A station that is not maintained or restricts access only to customers, tenants, employees, or other consumers is not publicly accessible.

Publicly accessible locations may include public parking facilities, parking at public buildings, public transportation stations, Park-and-Rides, public schools, public parks, private parking facilities available for public use, and visitor centers and other public locations on Federal Lands.
https://www.fhwa.dot.gov/environment/alternative_fuel_corridors/nominations/90d_nevi_formula_program_guidan ce.pdf Attachment 1

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2 alternative fueling infrastructure located along designated alternative fuel corridors.2 The actual amount of funding available for award each fiscal year will be based on the reduction of authorized funding due to the imposition of the annual obligation limitation. While applicants can choose to apply for only one grant program, this combined solicitation allows applicants to simultaneously apply for funding under both programs by submitting only one application. To the extent possible, all applications will be considered for both the Community and the Corridor programs.

The CFI Program will accelerate an electrified and alternative fuel transportation system that is convenient, affordable, reliable, equitable, accessible, and safe. The CFI Program will also help put the U.S. on a path to a nationwide network of at least 500,000 EV chargers by 2030 and improve networks for vehicles using hydrogen, propane, and natural gas. The CFI Program builds on the FHWA Alternative Fuel Corridor (AFC) program and complements the National Electric Vehicle Infrastructure (NEVI) Formula program, which is initially focused on enabling long distance trips along the National Highway System (NHS). The goals of the CFI Program are to 1) supplement, not supplant, necessary private sector investment; 2) complement existing Federal programs; 3) facilitate broad public access to a national charging and alternative fuel infrastructure network to accelerate adoption of zero emissions vehicles; 4) implement Justice403 objectives, lower transportation costs, and increase economic opportunity; 5) advance job quality, workforce development, and workforce equity; and 6) reduce greenhouse gas and vehicle-related emissions.
2 Overall, this program authorizes funding for 5 fiscal years (including FY 2022 and 2023), totaling up to $2.5 billion (FY 2022 $300 million, FY 2023 $400 million, FY 2024 $500 million, FY 2025 $600 million, and FY 2026 $700 million.
3 Justice40 Initiative | US Attachment 1

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3 By encouraging the adoption and expansion in use of alternative fuels, CFI Program investments have the potential to significantly address the transportation sector’s outsized contributions to climate change. Currently, the transportation sector is both the largest source of U.S. carbon dioxide emissions, and is increasingly vulnerable because of the higher temperatures, more frequent and intense precipitation, and sea level rise associated with the changing climate.4
The FHWA seeks to award funding under this notice to projects that address environmental justice,5 particularly for communities (prioritizing rural areas and low- and moderate-income neighborhoods) that may disproportionately experience the consequences from climate change and other pollutants. Also, as part of the FHWA implementation of Executive Order (EO) 14008, Tackling the Climate Crisis at Home and Abroad (86 FR 7619),6 FHWA seeks to fund projects that help achieve the goal that at least 40 percent of benefits7 flow towards low-income8 communities, disadvantaged communities,9 communities underserved by affordable transportation, or overburdened10 communities. In addition, FHWA intends to use this funding opportunity to support the creation of good-paying jobs with the free and fair choice to join a 4 See EPA Inventory of U.S. Greenhouse Gas Emissions and Sinks, available at https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks. 5 https://www.epa.gov/environmentaljustice#:~:text=Environmental%20justice%20is%20the%20fair,laws%2C%20r egulations%2C%20and%20policies. 6 https://www.federalregister.gov/documents/2021/02/01/2021-02177/tackling-the-climate-crisis-at-home-andabroad 7 The Justice40 Initiative is the Administration’s whole-of-government approach to advancing environmental justice though recommendations on how certain Federal investments might be made toward a goal that 40 percent of the overall benefits of investments flow to disadvantaged communities. (EO 14008, Tackling the Climate Crisis at Home and Abroad, 86 FR 7619) 8 Low-income: A person whose median household income is at or below the U.S. Department of Health and Human Services poverty guidelines. (FHWA Order 6640.23A. FHWA Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, 2012) 9 Disadvantaged communities are those that are marginalized, underserved, and overburdened by pollution. (EO 14008 on Tackling the Climate Crisis at Home and Abroad, 2021). 10 Overburdened Communities include minority, low-income, tribal or indigenous populations, or geographic locations in the U.S. that potentially experience disproportionate environmental harms and risks. (EPA EJ 2020 Glossary) Attachment 1

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4 union and the incorporation of strong labor standards and diverse workforce programs, in particular registered apprenticeships, labor management partnerships and Local Hire agreements,11 in project planning stages and program delivery.

This notice describes the application requirements, selection and evaluation criteria, Federal requirements, and available technical assistance during the grant solicitation period. To ensure a fair and unbiased evaluation of applications submitted under this notice, applications must be complete and address all statutory requirements; however, FHWA may request supplementary information, as needed, or to determine which category of grant the application best aligns or if applicants could be eligible to receive an award from both categories of funding.

Recipients of an award under this program related to EV infrastructure are required to comply fully with applicable sections of the National Electric Vehicle Infrastructure Standards and Requirements (23 CFR Part 680).12 These Standards specify technical aspects of chargers including connector types, power levels, minimum number of charging ports per station, minimum uptime (reliability standards), payment methods, and more; data submittal requirements; workforce requirements for installation, operation, or maintenance by qualified technicians; interoperability of EV charging infrastructure; traffic control devices and signage; network connectivity; and publicly available information. There will be at least one Webinar regarding the CFI Program. Please check the CFI website (https://www.fhwa.dot.gov/environment/cfi/) and the Joint Office of Energy and Transportation (Joint Office) Website (https://driveelectric.gov/) for more information. 11 Contracts awarded with geographic hiring preferences are eligible for assistance under most FHWA financial assistance programs. 12 EV Charging Minimum Standards Rule as Submitted to Federal Register for Publication (dot.gov) Attachment 1

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5 Funding Opportunity
Summary:

Up to $700 million in Federal funding to provide grants to eligible entities to strategically deploy publicly
accessible EV charging infrastructure, hydrogen fueling infrastructure, propane fueling infrastructure, and natural gas fueling infrastructure in certain locations or along designated AFCs that will be accessible to all drivers of EVs, hydrogen vehicles, propane vehicles, and natural
gas vehicles.

Up to $350 million is available for Community Program
projects.

Up to $350 million is available for Corridor Program
projects.

Federal Agency Name: U.S. Department of Transportation
FHWA, Office of Planning, Environment and Realty
(HEP)
1200 New Jersey Avenue, SE
Washington, DC 20590
Funding Opportunity Title: Charging and Fueling Infrastructure Grant Opportunity Announcement Type: This is the initial announcement of this funding opportunity. Section 11401of the Bipartisan
Infrastructure Law (BIL), enacted as the Infrastructure Investment and Jobs Act (Pub. L. 117-58, Nov. 15,
2021), established the Charging and Fueling
Infrastructure Discretionary Grant Program which is
codified at 23 U.S.C. § 151(f)(2).

There are two funding categories under the Charging
and Fueling Infrastructure Discretionary Grant Program:
(1) Community Charging and Fueling Program Grants
and (2) Alternative Fuel Corridor Grants.

Attachment 1

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6 Community Grants: • Located on any public road or in other publicly accessible locations, such as parking facilities at
public buildings, public schools, and public
parks, or in publicly accessible parking facilities
owned or managed by a private entity.
• Must be publicly accessible.
• May use funds to contract with a private entity.
• Minimum award amount of $500,00013,
maximum award amount of $15 million.
• Must address environmental justice.
• Expected to reduce greenhouse gas emissions
and to expand or fill gaps in access to publicly
accessible infrastructure.
• Must be accessible to and usable by individuals
with disabilities.

Corridor Grants: • Located along a designated AFC; EV charging within 1 mile and other alternative fuels within 5
miles of the AFC.
• Must be publicly accessible.
• Minimum award amount of $1 million14, no
maximum award amount.
• Must use funds to contract with a private entity.
• Must address environmental justice.
• Must be accessible to and usable by individuals
with disabilities.

Funding Opportunity
Number:
693JJ323NF00004
Type of Award: Cost Reimbursement Grant
Funding Categories: The FHWA Administrator may advise the Secretary of Transportation (Secretary) on options for reduced
awards and may award eligible applications under either the Community or the Corridor Program. To the extent
possible, all applications will be considered for both the Community and the Corridor Program regardless of
which grant is applied for.
13 The DOT reserves the discretion to consider award sizes under the anticipated minimum award size threshold upon receiving the full pool of applications and assessing the needs of the program in relation to grant priorities and consideration.
14 The DOT reserves the discretion to consider award sizes under the anticipated minimum award size threshold upon receiving the full pool of applications and assessing the needs of the program in relation to grant priorities and consideration. Attachment 1

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7 Assistance Listing Number
(formerly Catalog of
Federal Domestic
Assistance (CFDA)):

20.205 – Highway Planning and Construction
Application Due Date: Submission Deadline: Applications are due not later than 11:59 PM EST on MAY 30, 2023, through
Grants.gov. Applicants are encouraged to submit
applications in advance of the application deadline;
however, applications will not be evaluated, and awards will not be made, until after the application deadline.

Submit Applications To: The FHWA uses Grants.gov for receipt of all applications. Applicants must register and use the
system to submit applications electronically. Approval
of new user registrations for Grants.gov may take
multiple weeks. Applicants are encouraged to register
in advance of the submission deadline, and to subscribe under this NOFO number to receive notifications of
updates/amendments. It is the Applicant’s
responsibility to monitor Grants.gov for any
updates/amendments to this NOFO. Complete
instructions on how to register and apply can be found
at Grants.gov. If interested parties experience
difficulties at any point during registration or
application process, please call the Grants.gov Customer Support Hotline at 1-800-518-4726.

U.S. DOT staff cannot assist with technical Grants.gov
questions. Grants.gov technical support is available:

Online: http://www.grants.gov/web/grants/support.html
By phone (24 hours a day, 7 days a week): 1-800-518-
4726
By email: [email protected]
Questions: Submit Questions to Email: [email protected] Applications will not be reviewed in advance, but
FHWA staff are available to answer questions regarding
the program. In addition, FHWA will post answers to
questions and requests for clarifications at Grants.gov under this funding opportunity number.

Attachment 1

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8 SUPPLEMENTARY INFORMATION: The organization of this notice is based on an outline set forth in Appendix I to Title 2 of the Code of Federal Regulations (CFR) Part 200 to ensure consistency across Federal financial assistance programs. However, that format is designed for locating specific information, not for linear reading. For readers seeking to familiarize themselves with how the CFI Program dual funding categories application process will work, DOT recommends starting with Section A for both the Community Program and the Corridor Programs, which describe the goals of each program and DOT’s Administration priorities. The DOT also recommends reviewing Section E, which describes how DOT will select among eligible applications. The FHWA Administrator may advise the Secretary on options for reduced awards and may award eligible applications under either the Community or the Corridor Program.

Attachment 1

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9 TABLE OF CONTENTS
A. Program Description 11

1. Overview 11
i. Community Program 11
ii. Corridor Program 12

2. Additional Information 13

3. Administration Priorities and Departmental Strategic Plan Priority Statements 14
B. Federal Award Information 16

1. Amount Available 16
i. Community Program 17
ii. Corridor Program 17

2. Scalable Project Options 17
C. Eligibility Information 18

1. Eligible Applicants 18

2. Cost Sharing or Matching 19

3. Eligible Projects and Project Costs 20

4. Community Program – Eligibility Information 20

5. Corridor Program – Eligibility Information 22
D. Application and Submission Information 23

1. Address to Request Application Package 23

2. Content and Form of Application 24
i. Project Narrative 25
ii. Budget Information: Grant Funds, Sources, and Uses of All Project Funding 33
iii. Project Merit Criteria 35
iv. Project Readiness and Environmental Risk 35

3. Unique Entity Identifier and System for Award Management (SAM) 36

4. Submission Dates and Timelines 37

5. Intergovernmental Review 37

6. Funding Restrictions 38
i. Community Program 38
ii. Corridor Program 38

7. Other Submission Requirements 39
i. Consideration of Applications 39
ii. Late Applications 40
iii. Compliance with Section 508 of the Rehabilitation Act of 1973 40 E. Application Review Information 41

1. Selection Criteria 41
i. Community Program 41
ii. Corridor Program 41
iii. Overall Application Rating 41
iv. Project Merit Criteria 42
a. Criterion #1 Safety 42
b. Criterion #2 Climate Change, Resilience, and Sustainability 43 c. Criterion #3 Equity, Community Engagement, and Justice40 Attachment 1 44

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10 d. Criterion #4 Workforce Development, Job Quality, and Wealth Creation 46
e. Criterion #5 CFI Program Vision 48
v. DOT Statutory Selection Priorities 50
vi. Additional Considerations 51
vii. DOT Priority Considerations 53

2. Review and Selection Process 53
i. Review Process 54
ii. Selection Process 54

3. Additional Information 56
F. Federal Award Administration Information 56

1. Award Notices 56

2. Administrative and National Policy Requirements 57

3. Reporting 64
i. Progress Reporting on Grant Activities 64
ii. Reporting of Matters Related to Recipient Integrity and Performance 65 iii. Other 65
G. Federal Awarding Agency Contacts 65
H. Other Information 66

1. Protection of Confidential Business Information 66

2. Publication/Sharing of Application Information 67

3. DOT Feedback on Applications 67
Attachment 1

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11 A. Program Description

1. Overview
The CFI Program was established by the Bipartisan Infrastructure Law (BIL) (enacted as the Infrastructure Investment and Jobs Act, Section 11401, Pub. L. 117–58, Nov. 15, 2021, codified at 23 U.S.C. § 151) with two grant categories, one for the Community Program and one for the Corridor Program. The BIL provided up to $150 million to each program for FY 2022, totaling up to $300 million, and up to $200 million to each program for FY 2023, totaling up to $400 million. Accordingly, a total of up to $700 million is available under this notice, which includes up to $350 million for the Community Program and up to $350 million for the Corridor Program. Although this is one grant program, this solicitation is one NOFO with two distinct funding opportunities. These two distinct funding opportunities are referred to jointly as the “CFI Program” throughout this NOFO.
i. Community Program
Community Program grants are expected to reduce greenhouse gas emissions and to expand or fill gaps in access to charging or alternative fueling infrastructure.

Under 23 U.S.C. § 151(f)(8), FHWA seeks to award Community Program Grants to eligible entities (listed in Section C.1.) for projects on any public road or in other publicly accessible locations that are expected to reduce greenhouse gas emissions and to expand or fill gaps in access to publicly accessible EV charging infrastructure, or hydrogen, propane, or natural gas fueling infrastructure. Projects expanding access to charging and fueling infrastructure in rural areas,
15 low- and-moderate income neighborhoods, and communities with a low ratio of 15 For the purposes of the CFI Program, Urbanized Areas (UA) with populations of less than 50,000 will be considered rural. For purpose of this notice, in defining urban and rural communities, DOT will rely on the Census Bureau 2020 definition of UA as an area that consists of densely settled territory that contains 50,000 Attachment 1 or more

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12 private parking spaces to households or a high ratio of multiunit dwellings to single family homes shall be prioritized (23 U.S.C. § 151(f)(8)(F)). Infrastructure may be located on any public road or in other publicly accessible locations, such as parking facilities at public buildings, public schools, and public parks,
16 or in publicly accessible parking facilities owned or managed by a private entity (23 U.S.C. § 151(f)(8)(E)). If selected for an award, grant recipients may use funds to contract with a private entity17 that owns or manages parking facilities; however, fees to gain access to the charging or fueling infrastructure funded by this grant are not permitted. ii. Corridor Program
Corridor Program grants are expected to support buildout of charging or alternative fueling infrastructure along designated AFCs.

Under 23 U.S.C. § 151(f)(6), FHWA seeks to award Corridor Program Grants to eligible entities (listed in Section C.1.) to contract with a private entity18 for acquisition and installation of publicly accessible EV charging infrastructure, or hydrogen, propane, or natural gas fueling infrastructure that is directly related to the charging or fueling of a vehicle along designated AFCs. As of 2022, designated AFCs cover nearly 190,000 miles of the NHS and traverse rural and urban areas, Tribal lands, national parks, and underserved and disadvantaged communities.

The CFI Program will assist State and local agencies, private industry, and other interested stakeholders to build an alternative fuels transportation network to better meet drivers’ needs and improve the mobility of passenger and commercial vehicles that employ electric, hydrogen fuel people. Updated lists of UAs are available on the Census Bureau Website at:
http://www2.census.gov/geo/maps/dc10map/UAUC_RefMap/ua/ 16 Use of parks must comply with DOT 4(f) requirements 23 U.S.C. 138, 49 U.S.C. 303, and 23 CFR part 774. 17 The Federally Funded Research and Development Centers, including the National Renewable Energy Laboratory, are ineligible to be contracted as a private entity under this grant program. 18 The Federally Funded Research and Development Centers, including the National Renewable Energy Laboratory, are ineligible to be contracted as a private entity under this grant program.

Attachment 1

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13 cell, propane, and natural gas fueling technologies across the nation. The Corridor Program envisions a national AFC network that allows for inter-city, regional, and inter-state travel using cleaner fuels, addresses driver range anxiety, integrates with existing transportation planning processes, and accelerates public interest and awareness of alternative fuel availability. This includes both light-duty passenger vehicles and medium/heavy-duty vehicles. Through this NOFO, FHWA seeks to solicit applications that enable these objectives while contributing to the broader objectives outlined below.

The FHWA seeks to award projects in both urban and rural areas along designated AFCs to create a balance of publicly accessible electric charging and alternative fuel infrastructure.

The EV charging infrastructure should be conveniently and safely located as close to the AFC as possible, and, in general, no greater than one mile from Interstate exits or highway intersections along designated corridors. Hydrogen fueling infrastructure, propane fueling infrastructure, and natural gas fueling infrastructure is allowable no more than five miles from Interstate exits or highway intersections along the corridor. Infrastructure shall be located along a designated AFC under this section, on the condition that any affected Indian Tribes are consulted before the designation (23 U.S.C. § 151(f)(6)).

2. Additional Information
The DOT is committed to considering project funding decisions holistically among the various discretionary grant programs available in BIL. The DOT also recognizes that applicants may be seeking funding from multiple discretionary grant programs and opportunities. An applicant may seek the same award amounts from multiple DOT discretionary opportunities or seek a combination of funding from multiple DOT opportunities. The applicant should identify any other DOT programs and opportunities they have applied for and intend to apply for beyond Attachment 1

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14 the CFI Program (or utilize if the Federal funding is already available to the applicant), and what award amounts they will be seeking, within their application. The Community Program seeks to layer in a “dig once,” future-proofing approach to this substantial investment in charging and alternative fuel infrastructure. This “dig once” philosophy equates to maximizing the overall societal and economic benefits of a project while minimizing the cost and disruption of construction by considering and installing for current needs and as many of the reasonably foreseeable future needs, as practicable. Examples may include, but are not limited to, communications and broadband conduit, duct banks, and adequate power distribution for multimodal vehicular charging.

In addition to personally owned electric and alternative fuel vehicles, this NOFO can enable electrified and alternative fueled shared mobility, active mobility, and other affordable transportation options by combining funding from the Community Grant Program with other public and private investment.

Applicants for the Corridor Program should ensure their applications, as they relate to EV infrastructure, align with their State’s NEVI Deployment Plan.

3. Administration Priorities and Departmental Strategic Plan Priority Statements The DOT will consider the following priorities when making award decisions for the CFI Program:

1. Safety: The Department is committed to advancing safe, efficient transportation, including in the CFI Program. The National Roadway Safety Strategy (NRSS), issued January 27, 2022, commits the Department to respond to the current crisis in roadway fatalities by ‘taking substantial, comprehensive action to significantly reduce serious and fatal injuries on the Nation’s roadways,’ in pursuit of the goal of achieving zero roadway Attachment 1

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15 deaths through a Safe System Approach.19 The outcomes that are anticipated from the projects funded by the CFI Program should align with the NRSS.

2. Climate Change and Sustainability: The Department seeks to fund projects under the CFI Program that reduce greenhouse gas emissions in the transportation sector, incorporate evidence-based climate resilience measures and features, reduce the lifecycle greenhouse gas emissions from the project materials, and avoid adverse environmental impacts to air or water quality, wetlands, and endangered species, and address the disproportionate negative environmental impacts of transportation on disadvantaged communities, consistent with Executive Order (EO) 14008, Tackling the Climate Crisis at Home and Abroad (86 FR 7619).20

3. Equity and Justice40: The Department seeks to award projects under the CFI Program that will create proportional impacts to all populations in a project area, remove transportation related disparities to all populations in a project area, and increase equitable access to project benefits, consistent with EO 13985, Advancing Racial Equity and Support for Underserved Communities Through the Federal Government (86 FR 7009). The Department also seeks to award projects that address equity and environmental justice, particularly for communities that have experienced decades of underinvestment and are most impacted by climate change, pollution, and environmental hazards, consistent with EO 14008, Tackling the Climate Crisis at Home and Abroad (86 FR 7619).
19 https://www.transportation.gov/NRSS 20 See U.S. Department of Transportation Strategic Framework FY 2022–2026 (Dec. 2021) at https://www.transportation.gov/administrations/office-policy/fy2022-2026-strategic-framework Attachment 1

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16 4. Workforce Development, Job Quality, and Wealth Creation: The Department intends to use the CFI Program to support the creation of good-paying jobs with the free and fair choice to join a union and the incorporation of strong labor standards and training and placement programs, especially registered apprenticeships, in project planning stages, consistent with EO 14025, Worker Organizing and Empowerment (86 FR 22829), and EO 14052, Implementation of the Infrastructure Investment and Jobs Act (86 FR 64335).

The Department also intends to use the CFI Program to support wealth creation, consistent with the DOT’s Equity Action Plan through the inclusion of local inclusive economic development and entrepreneurship such as the utilization of Disadvantaged Business Enterprises, Minority-owned Businesses, Women-owned Businesses, or 8(a) firms.

5. Accessibility: The Department is committed to making infrastructure accessible to and usable by individuals with disabilities.21
B. Federal Award Information

1. Amount Available
A total of up to $700 million is available for CFI Program awards under this notice, which includes up to $300 million appropriated by the BIL for FY 2022, and up to $400 million appropriated by the BIL for FY 2023. All awards of FY 2022 funding are available for obligation though September 30, 2025 and must be expended by September 30, 2030. All awards 21 For more information, please refer to the U.S. Access Board American with Disabilities Act Accessibility Standards website at https://www.access-board.gov/ada/ and, as appropriate, U.S. Access Board document entitled Design Recommendations for Accessible Electric Vehicle Charging Stations found here: www.accessboard.gov/tad/ev/ Attachment 1

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17 of FY 2023 funding are available for obligation through September 30, 2026 and must be expended by September 30, 2031.
i. Community Program Award Information
A total of up to $350 million is available through this notice for the Community Program, which includes up to $150 million appropriated for FY 2022, and up to $200 million appropriated for FY 2023. The minimum award size is $500,000 and the maximum award amount is $15 million (23 U.S.C § 151(f)(8)(I)). The DOT reserves the discretion to consider award sizes under the anticipated minimum award size threshold above upon receiving the full pool of applications and assessing the needs of the program in relation to grant priorities and consideration.
ii. Corridor Program Award Information
A total of up to $350 million is available through this notice for the Corridor Program, which includes up to $150 million for FY 2022, and up to $200 million for FY 2023. The minimum award size is $1 million and there is no maximum award size under this NOFO. The DOT reserves the discretion to consider award sizes under the anticipated minimum award size threshold above upon receiving the full pool of applications and assessing the needs of the program in relation to grant priorities and consideration.

2. Scalable Project Options
Applicants are encouraged to propose projects that are scalable and identify scaled funding options in case insufficient funding is available to fund an applicant’s project or a bundled project at the full requested amount. For example, if a portion of the total project could be constructed and opened for functional public use, with the remainder of the total project constructed at a later time, please state such in the application, including the cost, brief scope, Attachment 1

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18 and scheduling needs for initial/scaled project. If an applicant advises that a project is scalable, the applicant must provide an appropriate minimum funding amount that will fund an eligible project that achieves the objectives of the program and meets all relevant program requirements.

The applicant must provide a clear explanation of how the project budget would be affected by a reduced award. The DOT may award a lesser amount whether or not a scalable option is provided.

C. Eligibility Information

1. Eligible Applicants
To be selected for a grant, an applicant must be an Eligible Applicant and the project must be an Eligible Project that meets the minimum project amount listed above in Section B.1.i. for the Community Program and Section B.1.ii. for the Corridor Program.

Eligible Applicants
Community
Program
23 U.S.C. §
151(f)(8)(C)
Corridor
Program
23 U.S.C. §
151(f)(3)
A State22 or political subdivision of a
State
 
A metropolitan planning organization  
A unit of local government  
A special purpose district or public
authority with a transportation function,
including a port authority
 
An Indian Tribe (as defined in section 4 of
the Indian Self-Determination and
Education Assistance Act (25 U.S.C. §
5304))23
 
22 The term “State” means any of the 50 States, the District of Columbia, or Puerto Rico 23 U.S.C. § 101(a)(28). 23 The term ‘‘Indian’’ means a person who is a member of an Indian tribe 25 U.S.C. § 5304(d). The term ‘‘Indian tribe’’ or ‘‘Indian Tribe’’ means any Indian tribe, band, nation, or other organized group or community, including any Alaska Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (85 Stat. 688), which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians 25 U.S.C. § 5304(e).

Attachment 1

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19 A territory of the United States  
An authority, agency, or instrumentality
of, or an entity owned by, 1 or more
entities as listed above
 
A group of entities as listed above  
A State or local authority with ownership
of publicly accessible transportation
facilities

If a group (two or more) of eligible entities above submits a joint application, the group must identify a lead applicant to serve as prime awardee in the event an award is made. The prime awardee will serve as the primary point of contact and be responsible for financial administration of the project. Joint applications should include a description of the roles and responsibilities of each applicant and should be signed or include a letter of support by each applicant.

Applications with a lead applicant that is not one of these statutory eligible applicants will be deemed ineligible and will not be evaluated to determine if the application contains a statutorily eligible project.

2. Cost Sharing or Matching
The Federal share of the cost of a project carried out with CFI Program funds under both programs shall not exceed 80 percent of the total project cost (23 U.S.C. § 151(f)(10)). Cost sharing or matching is required, with the maximum Federal share being 80 percent of the total cost of the project. Awardees must provide at least 20 percent of the total project cost (not 20 percent of the Federal share) as a matching share. Additional information on cost share can be found at 2 CFR 200.306 -- Cost sharing or matching and FHWA’s guidance on Non-Federal Matching Requirements.
24 The DOT will not consider previously incurred costs, previously 24 https://www.fhwa.dot.gov/legsregs/directives/policy/fedaid_guidance_nfmr.pdf Attachment 1

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20 expended or encumbered funds, or any CFI Program funds received towards the matching requirement for any project.

Eligible entities that contract with a private entity as required for the Corridor Program or as permitted by the Community Program must include in those contracts a condition that the private entity shall be responsible for the share of the project cost carried out with CFI Program funds that is not paid by the Federal Government. Under the CFI Program, a “private entity” means a corporation, partnership, company, or nonprofit organization. (23 U.S.C. § 151(f)(1)).

3. Eligible Projects and Project Costs
Each of the two funding opportunities has different statutory rules for what kinds of projects are eligible for funding. More information about Eligible Projects and Project Costs for each program is listed below in Section C.4 and C.5. If projects are eligible for funding under both CFI programs, applications will be considered for both funding opportunities. Applicants that do not include one of these statutorily eligible projects will not be evaluated in the selection priorities or considerations.

4. Community Program - Eligibility Information
Community Program grants are expected to reduce greenhouse gas emissions and to expand or fill gaps in access to charging or alternative fueling infrastructure.

Community Program – Eligible Projects
• Community Program grants may be awarded to any project that is expected to reduce greenhouse gas emissions and to expand or fill gaps in access to eligible infrastructure. o Eligible infrastructure is publicly accessible electric vehicle charging infrastructure, hydrogen fueling infrastructure, propane fueling infrastructure, or Attachment 1

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21 natural gas fueling infrastructure.25 Propane fueling infrastructure is limited to infrastructure for medium- and heavy-duty vehicles.26
o Projects may be located on any public road or in other publicly accessible locations, such as parking facilities at public buildings, public schools, and public parks, or in publicly accessible parking facilities owned or managed by a private entity.27
Community Program – Eligible Project Costs
• Acquisition and installation of eligible infrastructure (as defined above). An applicant that receives a CFI grant for installation of eligible infrastructure may also use grant funds for:
o Any related construction or reconstruction and the acquisition of real property directly related to the project.28
o Development phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, preliminary engineering and design work, and other preconstruction activities.29
o Contracting with a private entity for the acquisition, construction, installation, maintenance, or operation of eligible infrastructure included in the project.30 • Educational and community engagement activities to develop and implement education programs through partnerships with schools, community organizations, and 25 23 U.S.C. § 151(f)(8) 26 23 U.S.C. § 151(f)(7) 27 23 U.S.C. § 151(f)(8)(E) 28 23 U.S.C. § 151(f)(8)(D)(ii) 29 23 U.S.C. § 151(f)(8)(D)(i) 30 23 U.S.C. § 151(f)(8)(H) Attachment 1

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22 vehicle dealerships to support the use of zero-emission vehicles and associated infrastructure (may not exceed more than 5 percent of the grant amount awarded).31

5. Corridor Program – Eligibility Information
Corridor Program grants are expected to support buildout of charging or alternative fueling infrastructure along designated AFCs.

Corridor Program – Eligible Projects
• Corridor Program grants must be awarded to any project that contracts with a private entity for acquisition and installation, or operation, of eligible infrastructure. o Eligible infrastructure is publicly accessible electric vehicle charging infrastructure, hydrogen fueling infrastructure, propane fueling infrastructure, or natural gas fueling infrastructure that is directly related to the charging or fueling of a vehicle.32 Propane fueling infrastructure is limited to infrastructure for medium- and heavy-duty vehicles.33
o Projects must be located along an alternative fuel corridor designated under this section, on the condition that any affected Indian tribes are consulted before the designation.34
o EV charging infrastructure should be conveniently and safely located as close to the AFC as possible, and, in general, no greater than one mile from Interstate exits or highway intersections along designated corridors.
o Hydrogen fueling infrastructure, propane fueling infrastructure, and natural gas fueling infrastructure should be conveniently and safely located as close to the 31 23 U.S.C. § 151(f)(8)(K) 32 23 U.S.C. § 151(f)(6)(A) 33 23 U.S.C. § 151(f)(7) 34 23 U.S.C. § 151(f)(6)(B) Attachment 1

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23 AFC as possible, and, in general, no greater than five miles from Interstate exits or highway intersections along designated corridors.

Corridor Program – Eligible Project Costs
• Contracting with a private entity for acquisition and installation of eligible infrastructure (as defined above).35
• Providing a private entity with operating assistance for the first 5 years of operations after the installation of eligible infrastructure while the facility transitions to independent system operations.36
o Operating assistance shall be limited to costs allocable to operating and maintaining the eligible infrastructure and service, and may not exceed the amount of a contract to acquire and install eligible infrastructure.37 • An applicant that receives a CFI grant for acquisition and installation, or operations, of eligible infrastructure may also use grant funds for acquisition and installation of traffic control devices located in the right-of-way to provide directional information to eligible infrastructure included in the project.38
D. Application and Submission Information

1. Address to Request Application Package
All application materials may be found on Grants.gov. Once at Grants.gov, select the Search Grants tab. Then enter one of the following:
• Opportunity Number: 693JJ323NF00004
35 23 U.S.C. § 151(f)(6)(A) 36 23 U.S.C. § 151(f)(6)(C)(i) 37 23 U.S.C. § 151(f)(6)(C)(ii-iii) 38 23 U.S.C. § 151(f)(6)(D)(ii) Attachment 1

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24 • Opportunity Name: Charging and Fueling Infrastructure Discretionary Grant Program
• Assistance Listing Number: 20.205
When at one of these pages, select the CFI Opportunity, which will open to a page with several tabs. The first tab is a synopsis of the opportunity. The Related Documents tab is the Full Announcement (the NOFO document), NOFO Amendments, and supporting documents added by DOT such as FAQs. The Package tab allows you to preview the forms needed to submit an application. The red Subscribe button allows applicants to register to receive notice by email when DOT updates or adds to the opportunity page. The red Apply button allows applicants to apply using Grants.gov. Workspace to create and submit the application. See Grants.gov for training on using Grants.gov Workspace.

For a Telephone Device for the Deaf (TDD), please call (202) 366-3993. If potential applicants are unable to download the application package from the internet, they may send a written request for a paper copy to the below address. Requests should be sent to:

[email protected]

2. Content and Form of Application
All applications must be submitted electronically through Grants.gov. The application must include: (1) the required Standard Forms listed in item ii. Budget Information below; and (2) a narrative document that addresses the following items which are detailed below. Please submit the following items i. – iv. through Grants.gov as one file or as separate files, uploaded to the required form entitled “Attachments”.
i. Project Narrative
ii. Budget Information Attachment 1

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25 iii. Project Merit Criteria
iv. Project Readiness and Environmental Risk
i. Project Narrative
The FHWA recommends that the project narrative be prepared with standard formatting preferences (i.e., a single-spaced document, using a standard 12-point font such as Times New Roman, with 1-inch margins). If possible, Website links to supporting documentation should be provided rather than copies of these supporting materials. If supporting documents are submitted, applicants should clearly identify within the project narrative the relevant portion of the project narrative that each document supports. The FHWA recommends using appropriately descriptive final names (e.g., Project Narrative, Maps, Geospatial Data, Project Budget) for all attachments.

Also, in the project narrative, applicants should describe how the project addresses the following areas as well as the additional project narrative information that is specified below.

The DOT specifies that the project narrative follow the outline below. Following the outline will also assist evaluators in locating the relevant information.

Community Program
I. Description of project location, including a detailed geographical description of the proposed project, a map of the project’s location and connections to existing transportation infrastructure, geospatial data describing the project location, and how traffic safety considerations will be addressed for vehicles entering and leaving the site. Applicants must address how their project appropriately mitigates any safety risks introduced by the project.

Prior to receiving funds, all projects are expected to, at a minimum, identify and mitigate to the extent practicable any significant safety risks that could result after the project completion.

Attachment 1

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26 Applicants should include how their project will not negatively impact the overall safety of the traveling public. Applicants should also consider the NRSS39 when addressing how the projects will support the goal of achieving zero roadway death though a Safe Systems Approach. This description should also detail how the access is in compliance with the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.).

II. Description of how the project expands community-based infrastructure or fills gaps in access by equitably expanding the deployment of publicly available EV charging infrastructure, or hydrogen, propane or natural gas fueling infrastructure in community locations, located on any public road or in any other publicly accessible locations, such as parking facilities at public building, public schools, and public parks, or in publicly accessible parking facilities owned or managed by a private entity.

III. Description of how funds will be spent on various portions of the project(s). This should be categorized into uses such as project planning and development (such as costs for meaningful public involvement40), right-of-way (ROW)/acquisition costs, installation costs, operation costs, maintenance costs, educational activity costs, etc. The estimated amount of funds or percentages of funds to be spend in each category should be indicated as well as which entity is responsible for each cost. This section should also include any operating subsidies that will be sought or have been obtained for EV charging infrastructure, or hydrogen, propane or natural gas fueling infrastructure.

IV. Additional Project Narrative Information. The FHWA is interested in community charging and fueling deployment projects in several focus areas. As applicable, applicants are 39 https://www.transportation.gov/NRSS 40 This document can promote a shared understanding of meaningful public involvement and can be used as a resource: https://www.transportation.gov/priorities/equity/promising-practices-meaningful-public-involvementtransportation-decision-making Attachment 1

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27 encouraged to indicate which focus area(s) their proposed project address(es) and how the project benefits the community and improves access to EV and alternative fueling infrastructure.

In addition, in association with the focus areas specified, applicants are encouraged to note whether the project would expand alternative fueling/charging access to rural areas, low- and moderate- income neighborhoods, and/or underserved or hard to reach communities where the private sector may not invest absent federal funding.

More than one category can be identified.
• Multi-Modal Hubs and Shared-Use Fleets and Services: Seek to connect or promote rental vehicle, taxi, carshare, ride-share, ride-hail, bicycle, micromobility, microtransit, and other electrified or alternative fuel multipassenger or active mobility options that provide alternatives to individual vehicle ownership. Projects may also seek to connect national freight corridors with local delivery providers and fleets, such as urban depot charging for lightand medium-duty vehicles. • Urban/Suburban Area Charging and Fueling Solutions: Provide convenient, affordable access to charging and alternative fuel infrastructure in applications such as multi-unit dwellings and homes without driveways or garages.

Projects should seek to advance lower cost and highest return charging solutions with light construction when possible (e.g., pole-based charging).

Intersectional charging/mobility hubs that serve both inner-ring suburban and urban needs are also of interest. The EV charging projects should carefully articulate power levels required and demonstrate consideration of gaps to fill among existing charging and fueling infrastructure in order to provide an Attachment 1

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28 appropriate power delivery mix (e.g., avoid providing only high-power charging stations as the sole solution). Projects should address innovative ways to address challenges such as curb side access, reservation/convenient availability, reliability, and management of limited spaces. The DOT encourages collaboration between applicants and owners of the ROW during the application, installation, and maintenance of charging and fueling infrastructure.
• Rural Area Charging and Fueling Solutions: Support multi-purpose use including single occupancy vehicles, medium-duty vehicles and fleets, shared vehicles, and taxi or other service vehicles in the community. Rural areas can present unique challenges and opportunities to provide transportation solutions.

Projects should identify and address unique rural challenges and provide affordable solutions for vehicle charging or fueling infrastructure. • Fleet Vehicles that Serve and Operate in Communities: Enable local mediumand heavy-duty electrification and alternative fuel use for the following vehicle types: (1) Class 3, 4, 5 vans & step vans, class 6 box trucks, class 8 terminal tractors class regional haul tractors; (2) Municipal vehicles (e.g., shuttles, school buses, street sweepers, refuse, pickup trucks and vans); (3) Delivery trucks; or (4) Long haul vehicles.

Corridor Program
I. Description of project location, including a detailed geographical description of the proposed project, a map of the project’s location and connections to existing transportation infrastructure, geospatial data describing the project location, how traffic safety considerations Attachment 1

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29 will be addressed for vehicles entering and leaving the site. Applicants must address how their project appropriately mitigates any safety risks introduced by the project. Prior to receiving funds, all projects are expected to, at a minimum, identify and mitigate to the extent practicable any significant safety risks that could result after the project completion. Applicants should include how their project will not negatively impact the overall safety of the traveling public.

Applicants should also consider the NRSS41 when addressing how the projects will support the goal of achieving zero roadway death though a Safe Systems Approach.

II. Description of how public accessibility of charging or fueling infrastructure proposed to be funded with a grant under this subsection has been considered, including charging or fueling connector types and publicly available information on real-time availability and payment methods to ensure secure, convenient, fair, and equal access (23 U.S.C. § 151 (f)(4)(A)(i)).

III. Description of outcomes from collaborative engagement with stakeholders (including automobile manufacturers, utilities, infrastructure providers, technology providers, electric charging, hydrogen, propane, and natural gas fuel providers, metropolitan planning organizations, States, Indian tribes, and units of local governments, fleet owners, shared mobility operators, fleet managers, fuel station owners and operators, labor organizations, infrastructure construction and component parts suppliers, and multi-State and regional entities) that address the following for EV charging infrastructure, hydrogen fueling infrastructure, propane fueling infrastructure, or natural gas fueling infrastructure:
• Foster enhanced, coordinated, public-private or private investment; • Expand deployment;
• Protect personal privacy and ensure cybersecurity; and • Ensure that a properly trained workforce is available to construct and install infrastructure (23 U.S.C. § 151 (f)(4)(A)(ii)).
41 https://www.transportation.gov/NRSS Attachment 1

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30 IV. Identify whether the location of the station or fueling site considered the following:
• The availability of onsite amenities for vehicle operators, such as restrooms or food facilities;
• Access in compliance with the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.);
• Height and fueling capacity requirements for facilities that charge or refuel large vehicles, such as semi-trailer trucks; and
• Appropriate distribution to avoid redundancy and fill charging or fueling gaps (23 U.S.C. § 151 (f)(4)(A)(iii)).

V. Details to ensure infrastructure installation that can be responsive to technology advancements, such as accommodating autonomous vehicles, vehicle-to-grid technology, and future charging methods (23 U.S.C. § 151 (f)(4)(A)(iv)).

VI. Discussion about the long-term operation and maintenance of the EV charging infrastructure, hydrogen fueling infrastructure, propane fueling infrastructure, or natural gas fueling infrastructure, to avoid stranded assets and protect the investment of public funds in that infrastructure (23 U.S.C. § 151 (f)(4)(A)(v)).

VII. Assessment of the estimated emissions that will be reduced through the use of EV charging infrastructure, hydrogen fueling infrastructure, propane fueling infrastructure, or natural gas fueling infrastructure, which shall be conducted using the Alternative Fuel Life-Cycle Environmental and Economic Transportation (AFLEET) CFI Emissions tool42 developed by Argonne National Laboratory (or a successor tool) (23 U.S.C. § 151 (f)(4)(B)).

VIII. Description of how the project improves the AFCs by expanding the deployment of public EV charging infrastructure, particularly DC fast charging infrastructure or hydrogen, propane or natural gas fueling infrastructure along FHWA-designated AFCs. The application should indicate how the project: (1) will contribute to the conversion of corridor-pending 42 AFLEET CFI Tool (anl.gov) Attachment 1

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31 corridors to corridor-ready corridors by filling infrastructure gaps; (2) helps meet current or anticipated excess demand for corridor charging or alternative fueling infrastructure; and (3) provides infrastructure to support greater adoption of light- or medium- and heavy-duty alternative fuel vehicles.

IX. Description of how funds will be spent on various portions of the project(s). This should be categorized into uses such as project planning and development (such as costs for meaningful public involvement43), ROW/acquisition costs, installation costs, operation costs, maintenance costs, educational activity costs, etc. The estimated amount of funds or percentages of funds to be spent in each category should be indicated as well as which entity is responsible for each cost. This section should also include any operating subsidies that will be sought or have been obtained for EV charging infrastructure, or hydrogen, propane or natural gas fueling infrastructure.

X. Additional Project Narrative Information. The FHWA is interested in corridor charging and fueling deployment projects in several focus areas. As applicable, applicants are encouraged to indicate which focus area(s) their proposed project address(es) and how the project contributes to the build-out of a national corridor network. More than one category can be identified.
• Demonstrate Build-Out of AFCs: Expand deployment of public DC fast charge EV charging infrastructure, or hydrogen, propane or natural gas fueling infrastructure along designated AFCs. Infrastructure projects of interest can 43 This document can promote a shared understanding of meaningful public involvement and can be used as a resource: https://www.transportation.gov/priorities/equity/promising-practices-meaningful-public-involvementtransportation-decision-making Attachment 1

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32 expand existing or add new charging and fueling infrastructure for light-duty, medium-duty, and heavy-duty vehicles.
• Zero Emission Corridors for Medium- and Heavy-Duty Vehicles: The EV charging and hydrogen fueling infrastructure that will enable zero emission movement of goods, connecting distribution hubs and population centers.

Projects may also seek to connect national freight corridors with local delivery providers and fleets, such as urban depot charging for light- and medium-duty vehicles. Projects may also leverage other funding for alternative fuel infrastructure at ports or depots along corridors. Medium- and heavy-duty infrastructure applications should include explicit fleet commitments to utilize the infrastructure.
• Resiliency: Promote reliability and resiliency to intermittent or sustained power outages, disruptive and increasingly severe weather (snowstorms, fire, hurricanes, etc.), high-demand events that can strain the electric grid, or otherwise provide charging services in emergency situations. Projects should accommodate the safe movement of vehicles during these extreme weather events or power outages. These solutions may require complementary technologies (e.g., on-site battery storage, distributed energy resources, microgrids, bi-directional power).

For both the Community Program and Corridor Program the project narrative should provide information as to how innovative payment approaches (such as contactless technology, mobile wallets, bundling with transit discounts and other benefits programs, etc.) will be used to ensure that low- and zero-emission transportation options are accessible to diverse populations, Attachment 1

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33 including the unbanked and underbanked. For both the Community Program and the Corridor Program, the project narrative should also provide information necessary for DOT to determine that the project satisfies project requirements described in Section C.4.-5. for the grant program and to assess the merit criteria specified in Section E.1.iv. To the extent practicable, applicants should provide supporting data and documentation in a form that is directly verifiable by FHWA.

The FHWA may, but is not required to, request supplementary information, including additional data, to clarify supporting data and documentation submitted in an application, but FHWA encourages applicants to submit the most relevant and complete information they can provide.

Supplementary information may be requested to determine with which category of grant the application best aligns. To ensure a fair and unbiased evaluation of applications submitted under this notice, FHWA will not request additional information to perfect incomplete applications. ii. Budget Information: Grant Funds, Sources and Uses of All Project Funding Project budgets should show how different funding sources will share in each activity and present those data in dollars and percentages. The budget should identify other Federal funds, if any, that the applicant intends to use. Funding sources should be grouped into three categories:
non-Federal, CFI Program, and other Federal with specific amounts from each funding source.

The application must include the following forms as listed in the CFI Application Package in Grants.gov.

Mandatory Forms:
• Standard Form 424 (Application for Federal Assistance) (mandatory) • Grants.gov Lobbying Form (mandatory)
• Project Abstract Summary (mandatory)
• Key Contacts (optional)
Based on the nature of the project (Non-Construction vs Construction), the applicant must submit either:

Attachment 1

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34 • Standard Form 424A (Budget Information for Non-Construction Programs) (mandatory) and Standard Form 424B (Assurances for Non-Construction Programs) (mandatory) or
• Standard Form 424C (Budget Information for Construction Programs) (mandatory) and Standard Form 424D (Assurances for Construction Programs) (mandatory) Because of the Grants.gov Package Tab forms labeling structure, the Standard Forms 424A, B, C, and D will appear as optional forms. However, the applicant must select and submit either 424A and B; or SF 424C and D.

Applicants proposing non-construction-related projects should submit forms SF 424A and SF 424B with their application. Applicants proposing construction-related projects must submit forms SF 424C and SF 424D with their application. If a project consists of both nonconstruction and construction activities, the applicant must select one or the other based on which activity consumes the preponderance of the Federal funding. For purposes of this NOFO and consistent with Title 23, the term construction is defined at 23 U.S.C. §101(a)(4), in part, as the supervising, inspecting, actual building, and incurrence of all costs incidental to the construction or reconstruction of a highway or any project eligible for assistance under this title, including bond costs and other costs relating to the issuance in accordance with section 122 of bonds or other debt financing instruments and costs incurred by the State in performing Federal-aid project related audits that directly benefit the Federal-aid highway program.44 44 The 23 U.S.C. §101(a)(4) definition of construction continues to provide the following examples of what is included in the term: (A) assessing resilience, mapping (including the establishment of temporary and permanent geodetic control in accordance with specifications of the National Oceanic and Atmospheric Administration), and architectural-related services; assessing resilience, mapping (including the establishment of temporary and permanent geodetic control in accordance with specifications of the National Oceanic and Atmospheric Administration), and architectural-related services; (B) reconstruction, resurfacing, restoration, rehabilitation, and preservation; (C) acquisition of ROW; (D) relocation assistance, acquisition of replacement housing sites, and acquisition and rehabilitation, relocation, and construction of replacement housing; (E) elimination of hazards of railway-highway grade crossings; (F) elimination of roadside hazards; (G) improvements that directly facilitate and control traffic flow, such as grade separation of intersections, widening of lanes, channelization of traffic, traffic control systems, and passenger loading and unloading areas; (H) improvements that reduce the number of wildlifevehicle collisions, such as wildlife crossing structures; and (I) capital improvements that directly facilitate an Attachment 1

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35 Forms are available for download at https://www.grants.gov/web/grants/forms/sf-424- mandatory-family.html.

The Standard Form 424A or 424C (as applicable) should be supported by a budget narrative explaining each element of cost.

Except for the information properly marked as described in Section H., the Department may share application information within the Department or with other Federal Agencies if the Department determines that sharing is relevant to the respective program’s objectives. iii. Project Merit Criteria
The applicant should describe how the proposal meets the Project Merit Criteria list in Section E.1.iv.
iv. Project Readiness and Environmental Risk
The application should include information that, when considered with the project budget information, is sufficient for FHWA to evaluate whether the project is reasonably expected to begin in a timely manner, and obligate and expend awards before the deadlines. To assist FHWA’s determination of project readiness, application information should include:
• A detailed statement of work that focuses on the technical and engineering aspects of the project and describes in detail the project to be constructed; • Discussion of energy source and storage needs;
• An assessment of real property and ROW acquisition necessary for the project or a statement that no acquisition is necessary;
• Information about the inclusion of this project (or a plan to having this project included) in the relevant State, metropolitan, and local planning documents45; effective vehicle weight enforcement program, such as scales (fixed and portable), scale pits, scale installation, and scale houses.
45 The planning requirements applicable to the Federal-aid highway program apply to all CFI Program Grant projects. In accordance with 23 U.S.C. §§ 134 and 135, all projects requiring an action by FHWA must be in the applicable plan and programming documents (e.g., metropolitan transportation plan, transportation improvement program (TIP), and statewide transportation improvement program (STIP)). Further, in air quality non-attainment and maintenance areas, all regionally significant projects, regardless of the funding source, must be included in the conforming metropolitan transportation plan and TIP. Inclusion in the STIP is required under certain circumstances.

To the extent a project is required to be on a metropolitan transportation plan, TIP, or STIP, it will not receive a grant until it is included in such plans. Projects not currently included in these plans can be amended by the State Attachment 1

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36 • Any project approvals already obtained;
• Identification of known or anticipated project risks and how they will be addressed; • Discussion about any coordination or public engagement that has been completed or is on-going regarding this project;
• Discussion about intentions for Disadvantage Business Enterprise (DBE) participation or engagement;
• Discussion of how equity and accessibility requirements will be met; • An anticipated project timeline or anticipated project milestone dates; • Information about how 23 CFR Part 680 requirements, published on February 28, 2023 will be included; and
• Any other information that will demonstrate project readiness.

The application should also include information about the expected or anticipated environmental impacts of the project. To assist FHWA’s environmental risk assessment, application information should include any National Environmental Policy Act (NEPA) reviews or approvals and permits that have already been completed or an anticipated timeline to obtain the necessary approvals and permits for the project.

3. Unique Entity Identifier and System for Award Management (SAM) Effective April 4, 2022, the Data Universal Numbering System (DUNS) number is no longer required for entities doing business with the Federal government and has been replaced by the SAM UEI. As of that date, applicants are required to use a UEI issued during the SAM.gov registration process. Active registrants in SAM.gov have had their SAM UEI automatically assigned and it is currently viewable within SAM.gov. There is no additional action necessary for registered entities to take to obtain their SAM UEI. Each applicant is required to:
• Be registered in SAM before submitting their application; • Provide a valid UEI in their application; and
• Continue to maintain an active SAM registration with current information at all times during which the applicant has an active Federal award or an application or plan under consideration by a Federal awarding Agency.
and MPO. Projects that are not required to be in long range transportation plans, STIPs, and TIPs will not need to be included in such plans to receive a grant. Attachment 1

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37 Please see https://www.grants.gov/web/grants/applicants/applicant-faqs.html#UEI for more information on the transition from DUNS to SAM UEI, including what UEI to enter into the UEI field on Grants.gov and on application package forms.

The FHWA may not make a Federal award to an applicant until the applicant has complied with all applicable UEI and SAM requirements. If an applicant has not fully complied with the requirements by the time the Federal awarding Agency is ready to make a Federal award, the Federal awarding Agency may determine that the applicant is not qualified to receive a Federal award and use that determination as a basis for making a Federal award to another applicant.

NOTE TO APPLICANTS: The SAM.gov requires the registrant to provide a UEI number to complete the registration. These processes can take several weeks to complete so should be started well before the application deadline.

4. Submission Dates and Timelines
Applications must be submitted electronically through Grants.gov no later than 11:59 p.m., Eastern Time on May 30, 2023.

5. Intergovernmental Review
The CFI Program in not subject to the Intergovernmental Review of Federal Programs under EO 12372.

6. Funding Restrictions
Pre-CFI Program Grant award costs (costs incurred prior to execution of a grant agreement or authorization in Financial Management Information Systems) will not be reimbursed. Grant funds may not be used to support or oppose union organizing, whether directly or as an offset for other funds.

Attachment 1

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38 i. Community Program
Under 23 U.S.C. § 151(f)(8)(K), grant funds may be used for educational and community engagement activities (e.g., projects to educate consumers on the availability of new charging and fueling to address range anxiety; projects that work with communities to identify their needs for new charging and fueling infrastructure) to develop and implement education programs through partnerships with schools, community organizations, and vehicle dealerships to support the use of zero-emission vehicles and associated infrastructure; however, this cost is capped at no more than 5 percent of the grant amount the recipient is awarded. As in the Corridor Program, under 23 U.S.C. § 151(f)(7), projects for propane fueling are limited to infrastructure for medium- and heavy-duty vehicles. In addition, under 23 U.S.C. § 151(f)(8)(J), the Secretary may use the Community Program funds for technical assistance to assist grant recipients with the administration of their awarded funds; however, this cost is capped at 1 percent of the of the entire grant amount available for that fiscal year.
ii. Corridor Program
Under 23 U.S.C. § 151(f)(6)(A), grant funds shall only be used to contract with a private entity46 for acquisition and installation of publicly accessible EV charging infrastructure, hydrogen fueling infrastructure, propane fueling infrastructure, or natural gas fueling infrastructure that is directly related to the charging or fueling of a vehicle. As per 23 U.S.C. § 151(f)(6)(C)(i-iii), operating assistance costs allocable to operating and maintaining publicly available EV charging infrastructure, hydrogen fueling infrastructure, propane fueling infrastructure, or natural gas fueling infrastructure for the first 5 years of operations after the installation while the facility transitions to independent system operations and those costs may 46 The Federally Funded Research and Development Centers, including the National Renewable Energy Laboratory, are ineligible to be contracted as a private entity under this grant program. Attachment 1

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39 not exceed the amount of the contract to acquire and install publicly accessible charging or fueling infrastructure. Under 23 U.S.C. § 151(f)(6)(D)(i)-(iii), costs for the acquisition and installation of traffic control devices located in the ROW to provide directional information to publicly accessible EV charging infrastructure, hydrogen fueling infrastructure, propane fueling infrastructure, or natural gas fueling infrastructure acquired, installed, or operated is limited to applicants that receive a grant and are using that grant for the traffic control devices and that cost may not exceed the amount of the contract to acquire and install publicly accessible charging or fueling infrastructure. As in the Community Program, under 23 U.S.C. § 151(f)(7), projects for propane fueling are limited to infrastructure for medium- and heavy-duty vehicles.

7. Other Submission Considerations
i. Consideration of Applications
Only applicants who comply with all submission deadlines described in this notice and electronically submit valid applications through Grants.gov will be eligible for award.

Applicants are strongly encouraged to make submissions in advance of the deadline. ii. Late Applications
Applications received after the deadline will not be considered except in the case of unforeseen technical difficulties outlined below. Applicants experiencing technical issues with Grants.gov that are beyond the applicant’s control must contact Sarah Tarpgaard at [email protected] prior to the application deadline with the username of the registrant and details of the technical issue experienced. The applicant must provide:
• Details of the technical issue experienced;
• Screen capture(s) of the technical issues experienced along with corresponding Grants.gov “Grant tracking number”;
• The “Legal Business Name” for the applicant that was provided in the SF424; • The Point of Contact name submitted in the SF-424; Attachment 1

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40 • The UEI associated with the application; and
• The Grants.gov Help Desk Tracking Number.

To ensure a fair competition of limited discretionary funds, the following conditions are not valid reasons to permit late submissions: (1) failure to complete the registration process before the deadline; (2) failure to follow Grants.gov instructions on how to register and apply as posted on its Website; (3) failure to follow all instructions in this NOFO; and (4) technical issues experienced with the applicant’s computer or information technology environment.

After FHWA reviews all information submitted and contacts the Grants.gov Help Desk to validate reported technical issues, FHWA staff will contact late applicants to approve or deny a request to submit a late application through Grants.gov. The FHWA will not accept appeals of FHWA’s decision to approve or deny a request for a late application. If the reported technical issues cannot be validated, late applications will be rejected as untimely. iii. Compliance with Section 508 of the Rehabilitation Act of 1973 The DOT encourages applicants to submit documents that are compliant with Section 508 of the Rehabilitation Act of 1973. Section 508 guidelines are available at https://www.accessboard.gov/ict/.

E. Application Review Information

1. Selection Criteria
i. Community Program
The FHWA will award CFI Community Program Grants based on an evaluation of the Project Merit Criteria (Section E.1.iv.), DOT Statutory Selection Priorities (Section E.1.v.), Additional Considerations (Section E.1.vi.), and DOT Priority Considerations (Section E.1.vii.) described in this Section.

Attachment 1

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41 ii. Corridor Program
The FHWA will award CFI Corridor Program Grants based on an evaluation of the Project Merit Criteria (Section E.1.iv.), Additional Considerations (Section E.1.vi.), and DOT Priority Considerations (Section E.1.vii.) described in this Section. iii. Overall Application Rating
If a project does not meet the applicable eligibility requirements (Section C.), the application will not be evaluated for the Project Merit Criteria or DOT Priority Considerations.

Based on evaluation of the Project Merit Criteria listed below, DOT will assign each eligible project an overall rating of highly recommended, recommended, or not recommended for each of the grant programs for which the applicant is applying. A Highly Recommended project is one that meets all statutory eligibility criteria, receives a rating of Highly Qualified in at least 3 of the 5 Project Merit Criteria described below, and receives at least a rating of Qualified for each of the Project Merit Criteria described below. A Recommended project is one that meets all statutory eligibility criteria and receives at least a rating of Qualified for each of the Project Merit Criteria described below. A Not Recommended project is one that does not meet one or more of the statutory eligibility criteria or receives a rating of Not Qualified for any of the Project Merit Criteria described below. When a project is determined to be Not Recommended at any time during the review, DOT will discontinue further evaluation under remaining criteria. iv. Project Merit Criteria
The DOT has designated five project criteria which will be used to evaluate and rate the merit of an application, as follows.

Attachment 1

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42 a. Criterion #1 Safety
Applicants must address how their project appropriately mitigates any safety risks introduced by the project. Prior to receiving funds, all projects are expected to, at a minimum, identify and mitigate to the extent practicable any significant safety risks that could result after the project completion. Applicants should include how their project will not negatively impact the overall safety of the traveling public. Applicants should also consider the NRSS47 when addressing how the projects will support the goal of achieving zero roadway death though a Safe Systems Approach.

Highly Qualified Qualified Not Qualified
The application demonstrates
that the project will (must
demonstrate all):

The application demonstrates
that the project will (must
demonstrate at least one):

The application contains
insufficient information to
allow reviewers to assess
whether the project will
demonstrate any of the
following items:
(1) Provide positive safety
benefits for all users; (2)
Does not negatively impact
safety for all users; AND (3)
Promote safety through
design.
(1) Provide positive
safety benefits for all
users; (2) Does not
negatively impact
safety for all users;
OR (3) Promote safety
through design.
(1) Provide positive safety
benefits for all users; (2) Does
not negatively impact safety
for all users; OR (3) Promote
safety through design.
b. Criterion #2 Climate Change, Resilience, and Sustainability Applicants must address how the project will consider climate change, resilience, and environmental justice in the planning stage and in project delivery. In particular, applicants must address the extent to which the project reduces greenhouse gas emissions in the transportation sector, incorporates evidence-based climate resilience measures and features, and reduces the 47 https://www.transportation.gov/NRSS Attachment 1

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43 lifecycle greenhouse gas emissions from the project materials. Applicants also must address the extent to which the project avoids adverse environmental impacts to air or water quality, wetlands, and endangered species, as well as address disproportionate negative impacts of climate change and pollution on disadvantaged communities, including natural disasters, with a focus on prevention, response, and recovery.

Highly Qualified Qualified Not Qualified
The application demonstrates
that the project will (must
demonstrate all):
(1) Significantly reduce
greenhouse gas emissions in
the transportation sector; (2)
Incorporate evidence-based
climate resilience measures or
features, and addresses the
Federal Flood Risk Mitigation
Standard as updated by E.O.
13690, as appropriate; (3)
Consider climate change,
resilience, and environmental
justice in project planning and
delivery; AND (4) address the
extent to which the project
avoids adverse environmental
impacts to air or water quality,
wetlands, and endangered
species, as well as address
disproportionate negative
impacts of climate change and
pollution on disadvantaged
communities, including
natural disasters, with a focus
on prevention, response, and
recovery.

The application demonstrates
that the project will (must
demonstrate at least one):
(1) Significantly reduce
greenhouse gas emissions in
the transportation sector; (2)
Incorporate evidence-based
climate resilience measures or
features, and addresses the
Federal Flood Risk Mitigation
Standard as updated by E.O.
13690, as appropriate; (3)
Consider climate change,
resilience, and environmental
justice in project planning and
delivery; OR (4) address the
extent to which the project
avoids adverse environmental
impacts to air or water quality,
wetlands, and endangered
species, as well as address
disproportionate negative
impacts of climate change and
pollution on disadvantaged
communities, including
natural disasters, with a focus
on prevention, response, and
recovery.

The application contains
insufficient information to
allow reviewers to assess
whether the project will
demonstrate any of the
following items:
(1) Significantly reduce
greenhouse gas emissions in
the transportation sector; (2)
Incorporate evidence-based
climate resilience measures or
features, and addresses the
Federal Flood Risk Mitigation
Standard as updated by E.O.
13690, as appropriate; (3)
Consider climate change,
resilience, and environmental
justice in project planning and
delivery; OR (4) address the
extent to which the project
avoids adverse environmental
impacts to air or water quality,
wetlands, and endangered
species, as well as address
disproportionate negative
impacts of climate change and
pollution on disadvantaged
communities, including
natural disasters, with a focus
on prevention, response, and
recovery.

Attachment 1

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44 c. Criterion #3 Equity, Community Engagement, and Justice40 Applicants must address how their project will include an equity assessment which evaluates whether a project will create proportional impacts and remove transportation related disparities to all populations in a project area. Although not required, applicants are encouraged to use DOT’s Transportation Disadvantaged Census Tracts (arcgis.com) tool or equivalent tools in their assessment. Applicants should demonstrate how meaningful public involvement48, inclusive of disadvantaged populations, will occur throughout a project’s life cycle. Projects should demonstrate, to the extent possible, that outcomes should target at least 40 percent of benefits towards low-income communities, disadvantaged communities, communities underserved by affordable transportation, or overburdened communities. Applicants should address how project benefits will increase affordable transportation options, improve safety, connect Americans to good-paying jobs, fight climate change, and improve access to resources and quality of life.

Highly Qualified Qualified Not Qualified
The application demonstrates
that the project will (must
demonstrate all):
(1) include an equity analysis
which evaluates whether a
project will create
proportional impacts and
remove transportation related
disparities to all populations
in a project area. Although
not required, applicants are
encouraged to use DOT’s
Transportation Disadvantaged
Census Tracts (arcgis.com) or
EV Charging Justice40 Map
(arcgis.com) tool or
equivalent tools in their
assessment; (2) include
The application demonstrates
that the project will (must
demonstrate at least one):
(1) include an equity analysis
which evaluates whether a
project will create
proportional impacts and
remove transportation related
disparities to all populations
in a project area. Although
not required, applicants are
encouraged to use DOT’s
Transportation Disadvantaged
Census Tracts (arcgis.com) or
EV Charging Justice40 Map
(arcgis.com) tool or
equivalent tools in their
assessment; (2) include
The application contains
insufficient information to
allow reviewers to assess
whether the project will
demonstrate any of the
following items:
(1) include an equity analysis
which evaluates whether a
project will create
proportional impacts and
remove transportation related
disparities to all populations
in a project area. Although
not required, applicants are
encouraged to use DOT’s
Transportation Disadvantaged
Census Tracts (arcgis.com) or
EV Charging Justice40 Map
48 https://www.transportation.gov/priorities/equity/promising-practices-meaningful-public-involvementtransportation-decision-making Attachment 1

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45 meaningful public
engagement throughout a
project’s life cycle and to the
extent possible, projects that
target at least 40 percent of
benefits towards low-income
communities, disadvantaged
communities, communities
underserved by affordable
transportation, or
overburdened communities;
(3) increase affordable
transportation options,
improve safety, connect
Americans to good-paying
jobs, fight climate change, or
improve access to resources
and quality of life; (4) Enable
all people within the
multimodal transportation
networks to reach their
desired destination safely,
affordably, and with a
comparable level of efficiency
and ease; (5) Address, as
applicable, the unique
challenges rural and Tribal
communities face related to
mobility and economic
development, including
isolation, transportation cost
burden, and traffic safety
(consistent with DOT’s Rural
Opportunities to Use
Transportation for Economic
Success (ROUTES) initiative)
if geographically relevant to
the project or indicate that this
is not relevant; AND (6)
Incorporate and support
integrated land use, economic
development and
transportation planning to
improve the movement of
people and goods and local
fiscal health, facilitates greater
meaningful public
engagement throughout a
project’s life cycle and to the
extent possible, projects that
target at least 40 percent of
benefits towards low-income
communities, disadvantaged
communities, communities
underserved by affordable
transportation, or
overburdened communities;
(3) increase affordable
transportation options,
improve safety, connect
Americans to good-paying
jobs, fight climate change, or
improve access to resources
and quality of life; (4) Enable
all people within the
multimodal transportation
networks to reach their
desired destination safely,
affordably, and with a
comparable level of efficiency
and ease; (5) Address, as
applicable, the unique
challenges rural and Tribal
communities face related to
mobility and economic
development, including
isolation, transportation cost
burden, and traffic safety
(consistent with DOT’s Rural
Opportunities to Use
Transportation for Economic
Success (ROUTES) initiative)
if geographically relevant to
the project or indicate that this
is not relevant; OR (6)
Incorporate and support
integrated land use, economic
development and
transportation planning to
improve the movement of
people and goods and local
fiscal health, facilitates
(arcgis.com) tool or
equivalent tools in their
assessment; (2) include
meaningful public
engagement throughout a
project’s life cycle and to the
extent possible, projects that
target at least 40 percent of
benefits towards low-income
communities, disadvantaged
communities, communities
underserved by affordable
transportation, or
overburdened communities;
(3) increase affordable
transportation options,
improve safety, connect
Americans to good-paying
jobs, fight climate change, or
improve access to resources
and quality of life; (4) Enable
all people within the
multimodal transportation
networks to reach their
desired destination safely,
affordably, and with a
comparable level of efficiency
and ease; (5) Address, as
applicable, the unique
challenges rural and Tribal
communities face related to
mobility and economic
development, including
isolation, transportation cost
burden, and traffic safety
(consistent with DOT’s Rural
Opportunities to Use
Transportation for Economic
Success (ROUTES) initiative)
if geographically relevant to
the project or indicate that this
is not relevant; OR (6)
Incorporate and support
integrated land use, economic
development and
transportation planning to Attachment 1

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46 public and private investments
and strategies in land-use
productivity, including rural
main street revitalization or
increase in the production or
preservation of locationefficient housing.
greater public and private
investments and strategies in
land-use productivity,
including rural main street
revitalization or increase in
the production or preservation
of location-efficient housing.
improve the movement of
people and goods and local
fiscal health, facilitates
greater public and private
investments and strategies in
land-use productivity,
including rural main street
revitalization or increase in
the production or preservation
of location-efficient housing.
d. Criterion #4 Workforce Development, Job Quality, and Wealth Creation Applicants must address how their project will create good-paying jobs with free and fair choice to join a union, including, but not limited to the use of project labor agreements, promote investments in high-quality workforce development programs with supportive services to help train, place, and retain people in good-paying jobs or registered apprenticeship, with a focus on women, people of color, and others that are underrepresented in infrastructure jobs (people with disabilities, people with convictions, etc.); and change hiring policies and workplace cultures to promote the entry and retention of underrepresented populations. Applicants should address how the project promotes local inclusive economic development and entrepreneurship, including prioritizing the utilization of Disadvantaged Business Enterprises, Minority-owned Businesses, Women-owned Businesses, or 8(a) firms.
49 Highly Qualified Qualified Not Qualified
The application demonstrates
that the project will (must
demonstrate all):
(1) create good-paying jobs
with free and fair choice to
join a union and expand strong
labor standards including, but
The application demonstrates
that the project will (must
demonstrate at least one):
(1) create good-paying jobs
with free and fair choice to
join a union and expand
strong labor standards
The application contains
insufficient information to
allow reviewers to assess
whether the project will
demonstrate any of the
following items:
49 Nothing in this criterion is intended to conflict with DOT’s DBE Program regulations at 49 CFR part 26. The use of DBE or firms that may be certified for participation in other applicable Federal, State, or local programs must be consistent with DOT DBE. Attachment 1

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Watsonville City CouncilJune 13, 2023

Watsonville City Council
June 13, 2023