Watsonville City Council
July 18, 2023

MEMORANDUM OF UNDERSTANDING

BETWEEN

THE MUNICIPAL RELATIONS OFFICER

OF THE CITY OF WATSONVILLE AND

ITS POLICE MANAGEMENT UNIT
2023-2025
DocuSign Envelope ID: 04E4E248-28AB-45F1-BB25-C7F880B465A5 Exhibit A

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TABLE OF CONTENTS

1.0 COMPENSATION ........................................................................................................... 3

1.1 Salary Adjustment.........................................................................................................3

1.2 Retirement Contribution................................................................................................3

1.3 Administrative Leave ....................................................................................................4

1.4 Overtime Pay.................................................................................................................4

1.5 Auto Policy....................................................................................................................5

1.6 Uniform Allowance.......................................................................................................5

1.7 Bilingual Pay.................................................................................................................5

1.8 Educational Incentive Pay for Police Captains and Assistant Chief of Police..............6

1.9 Longevity Pay.............................................................................................................7

1.10 Deferred Compensation................................................................................................7

2.0 INSURANCE .................................................................................................................... 7

2.1 Health Insurance............................................................................................................7

2.2 Excess Disability Insurance.........................................................................................88

2.3 Long Term Disability Insurance....................................................................................9

2.4 Life Insurance................................................................................................................9

3.0 LEAVES ............................................................................................................................ 9

3.1 Vacation Leave..............................................................................................................9

3.2 Holidays ......................................................................................................................10

3.3 Sick Leave ...................................................................................................................10

4.0 ENACTMENT ................................................................................................................ 11 DocuSign Envelope ID: 04E4E248-28AB-45F1-BB25-C7F880B465A5 Exhibit A

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MEMORANDUM OF UNDERSTANDING

BETWEEN THE MUNICIPAL RELATIONS OFFICER

OF THE CITY OF WATSONVILLE AND ITS POLICE MANAGEMENT UNIT This Memorandum of Understanding (MOU) sets forth the agreement between the Municipal Relations Officer of the City of Watsonville (MRO) and the City’s Police Management Unit (Unit) as to all matters within the scope of representation for the employees of the City represented by the Unit. This MOU is authorized by and made pursuant to Council Resolution and Rules and Regulations adopted pursuant thereto. The MRO and the undersigned on behalf of the Unit hereby agree to jointly recommend to the City Council of the City of Watsonville that one or more Resolutions be adopted effectuating the following changes in benefits and other terms and conditions of employment for all the employees in the Unit. The members of the Unit, by accepting the benefits hereof, agree to be bound by the terms and conditions of this MOU.

This MOU shall become effective July 1, 2023, and shall terminate on June 30, 2025.

All benefits in effect on the date set forth below and not modified by this MOU shall remain in effect for the term of this MOU, except as provided herein.

1.0 COMPENSATION

1.1 Salary Adjustment
Effective the first full pay after July 1, 2023 each step in the salary range for all employees shall be increased by a 3.0% cost of living increase.

Effective the first full pay period after July 1, 2024 each step in the salary range for all employees shall be increased by a 3.5% cost of living increase.

1.2 Retirement Contribution

1.2.1 Public Safety Employees Retirement Plan. Public Safety members of the Management Unit hired prior to July 1, 2011 shall be subject to the same CalPERS retirement program plan provisions outlined in the appropriate public safety bargaining unit MOU.

1.2.2 Public Safety Employees Two-Tier Retirement Plan. Public Safety members of the Management Unit hired on or after July 1, 2011 shall be subject to the same Two-Tier CalPERS retirement program plan provisions outlined in the appropriate public safety bargaining unit MOU.

1.2.3 Public Safety Employees PEPRA Tier Retirement Plan. Pursuant to California Public Employees' Pension Reform Act of 2013 (PEPRA), the DocuSign Envelope ID: 04E4E248-28AB-45F1-BB25-C7F880B465A5 Exhibit A

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City shall provide the CalPERS 2.7% at 57 retirement plan for Public Safety employees hired on or after January 1, 2013 or as soon as administratively possible. Final compensation will be based on the average of the highest wages earned in any consecutive 3-year period.

1.2.4 Public Safety Employees Retirement Contribution.

Tier 1 and 2: Employees in the Tier 1 and Tier 2 CalPERS retirement plans shall Contribute 9% toward the cost of their retirement plan.

Effective in the first full pay period after July 1, 2022, employees will contribute an additional 3% toward the employer cost of their retirement plan, for a total contribution of 12%.

Tier 3: In accordance with PEPRA, the City may not “pick up” any portion of the required member contributions of employees who meet PEPRA’s “new” member definition (Tier 3 employees). All employees in the Tier 3 retirement plan shall pay 12% or one half of the normal cost of the benefit, whichever is greater. If one half of the normal cost of the Tier 3 benefit increases, the Tier 3 employees’ retirement contribution shall also immediately increase by the same amount so that at all times these employees are paying at least half the normal cost of their retirement benefit as required by PEPRA. If one half of the normal cost of the Tier 3 decreases, the Tier 3 employees’ retirement contribution shall remain at 12% and any difference between 12% and any difference between 12% and half the normal cost shall be considered an employee “pick up” of the employer contribution.

1.2.5 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.

1.3 Administrative Leave

1.3.1 Exempt Employees assigned to a 40 hour work week shall receive Administrative Leave of 13.5 days (108 hours) per year beginning July 1st. Unused Administrative Leave as of June 30 shall be paid off at the regular rate of pay the succeeding month.

1.3.2 Employer shall pro-rate Administrative Leave up to a maximum of 9 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.

1.4 Overtime Pay
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 DocuSign Envelope ID: 04E4E248-28AB-45F1-BB25-C7F880B465A5 Exhibit A

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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.

1.5 Auto Policy

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

1.6 Uniform Allowance
Uniform allowance shall be One Thousand Two Hundred ($1200.00) Dollars per year for public safety members of the Police Management Unit for the purchase and maintenance of required uniform items and footwear effective the first full pay period after July 1, 2023.

1.7 Bilingual Pay

1.7.1 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

1.7.2 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 DocuSign Envelope ID: 04E4E248-28AB-45F1-BB25-C7F880B465A5 Exhibit A

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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.

1.7.3 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.

1.7.4 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.

1.7.5 Bilingual Pay: Pursuant to Section 1.7 of the MOU, Police Captains appointed to the position of Police Captain after September 9, 2016 shall be subject to the bilingual pay terms outlined in the Management MOU. Police Lieutenants receiving bilingual premium pay equal to five percent (5%) of base salary who are re-classified to Police Captain prior to September 9, 2016 shall receive bilingual pay equal to five percent (5%) of his/her base salary as of August 23, 2016, rounded to the nearest dollar.

1.8 Educational Incentive Pay for Police Captains and Assistant Police Chief DocuSign Envelope ID: 04E4E248-28AB-45F1-BB25-C7F880B465A5 Exhibit A

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Police Captains shall receive a five percent (5%) differential for the POST Management Certificate. Sergeants promoting to the rank of Captain who were receiving educational incentive pay pursuant to section 16.1 of the Police MidManagement MOU, shall continue to receive such pay for up to 24 months pending receipt of the POST Management Certificate.

The Assistant Chief of Police shall receive a two and one half percent (2.5%) differential for obtaining a POST Executive Certificate (or equivalent as determined by the Police Chief). No educational pay is received by the Assistant Chief of Police for the POST Management Certificate.

Effective the first full pay period after July 1, 2024, employees with a Master’s degree from a regionally accredited university shall receive 2.5% on the first full pay period after verification is provided to Human Resources.

1.9 Longevity Pay
Any employee with at least 10 years as a regular, benefitted Watsonville employee shall receive a two percent (2%) Longevity Pay Premium. Any employee with at least 20 years as a regular, benefitted Watsonville employee shall receive an additional two and one-half percent (2.5%) Longevity Pay Premium. Longevity pay will become effective the first full pay period after July 1, 2023. This section will replace current longevity language.

1.10 Deferred Compensation
Employees may participate in the Deferred Compensation Plan currently.

Employees must contribute to a deferred compensation plan in order to receive the following matching City contributions. The City will match contributions of up to $50 per paycheck to the deferred compensation plan offered by the City effective in the first full pay period after July 1, 2023

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 $1,230.50
DocuSign Envelope ID: 04E4E248-28AB-45F1-BB25-C7F880B465A5 Exhibit A

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2.1.3 If plan contribution increases are necessary for the 2024 and 2025 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.

2.2 Excess Disability Insurance

2.2.1 In the event of job-related injury or illness, the employee will receive the maximum weekly Workers' Compensation benefit as determined by State law. This does not supersede Workers' Compensation laws relating to Public Safety employees.

2.2.2 In addition to this amount, the employee may receive an appropriate amount of accrued sick leave pay to provide for the difference between the established Workers' Compensation amount and the employee's regular gross pay.

2.2.3 The employee may also receive $50.00 per week extra disability coverage in lieu of accrued sick leave pay.

DocuSign Envelope ID: 04E4E248-28AB-45F1-BB25-C7F880B465A5 Exhibit A

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2.2.4 In no event shall the combination of Workers' Compensation benefits exceed the regular gross pay of the affected employee.

2.2.5 It shall be the responsibility of the employee to notify the Finance Department within three (3) days of the injury or illness if the extra coverage option described in Section 2.2.3 above is to be implemented.

2.2.6 Absent notification to the contrary, the Finance Department will automatically apply accrued sick leave with the established Workers' Compensation amount to equal the employee's gross pay.

2.2.7 The $50.00/week excess coverage shall not apply until the seventh (7th) calendar day following injury or illness event.

2.3 Long Term Disability Insurance
The City shall continue paying the Long Term Disability Insurance premium for the Unit members for the term of the agreement.

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 96 hours
2nd year 104 hours
3rd year 112 hours
4th year 120 hours
5 - 10 years 128 hours
11+ years 176 hours

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 DocuSign Envelope ID: 04E4E248-28AB-45F1-BB25-C7F880B465A5 Exhibit A

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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
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.

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.

DocuSign Envelope ID: 04E4E248-28AB-45F1-BB25-C7F880B465A5 Exhibit A

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4.0 ENACTMENT
This MOU shall become effective upon ratification by the City Council of the City of Watsonville, and shall remain in full force and effect until June 30, 2025, or until a new MOU has been executed

POLICE MANAGEMENT UNIT
Date___________ _________________________________
Edmundo Rodriguez, Unit Representative
Date___________ _________________________________
Michael McKinley, Unit Representative
Date___________ __________________________________
Donny Thul, Unit Representative
Date___________ ___________________________________
Antonio Figueroa, Unit Representative

CITY OF WATSONVILLE
Date____________ _________________________________
Rene L. Mendez, City Manager
Date_____________ _________________________________
City Attorney
Date_____________ _________________________________
City Clerk
DocuSign Envelope ID: 04E4E248-28AB-45F1-BB25-C7F880B465A5 7/10/2023 | 7:17 AM PDT
7/10/2023 | 7:10 AM PDT
7/9/2023 | 11:17 AM PDT
7/7/2023 | 12:49 PM PDT
Exhibit A

7/12/2023 3:01:54 PM
C:\Program Files\eSCRIBE\TEMP\1512520516\1512520516,,,Amended SB1 Project List.docx Agenda Report
MEETING DATE: Tuesday, July 18, 2023
TO: City Council
FROM: PUBLIC WORKS & UTILITIES DIRECTOR LINDBERG

ASST PUBLIC WORKS & UTILITIES DIRECTOR/CITY

ENGINEER FONTES
THROUGH: CITY MANAGER MENDEZ
SUBJECT: APPROVAL OF AMENDED PROJECT LIST FOR
TRANSPORTATION PROJECTS FUNDED BY SB 1
RECOMMENDED ACTION:

Staff recommends that the City Council adopt a resolution approving an Amended Project List for transportation projects to be funded by Senate Bill 1 (SB1) in Fiscal Year 23/24.

DISCUSSION:

In 2017, Governor Brown signed SB 1, providing additional funding for road maintenance, rehabilitation, and safety projects. The funding is apportioned by formula to cities and counties. Watsonville’s projected annual share for FY23/24 is $1,279,915.

To be eligible for SB 1 funding in FY23/24, the City must provide the California Transportation Commission (CTC) with a list of projects that have been approved by the City Council. Council approved an SB1 Project List at its June 13, 2023, meeting and staff submitted the approved List to the CTC.

After reviewing the City’s June 13, 2023, Project List, CTC staff notified the City that it would need to amend its List as it is non-compliant due to missing locations for the Maintain Roads project and insufficient detail for Citywide Restriping and Road Repair projects. City staff amended the Project List to provide the locations and details requested by the CTC. These amendments do not change the proposed scope of these projects.

STRATEGIC PLAN:

The proposed expenditure plans are consistent with the following Strategic Plan Goals:
2-Infrastructure & Environment
5-Public Safety

7/12/2023 3:01:54 PM
C:\Program Files\eSCRIBE\TEMP\1512520516\1512520516,,,Amended SB1 Project List.docx FINANCIAL IMPACT:

SB 1 will provide funding for transportation projects and help the City qualify for additional grant funds by serving as a local match.

ALTERNATIVE ACTION:

No reasonable alternatives are known currently.

ATTACHMENTS AND/OR REFERENCES (If any):

None

Reso No. ______ (CM) 1
Meeting Date: 071823 SWZ ______ RM ______ PWU ______
RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE APPROVING THE CITY OF WATSONVILLE – SB1
PROJECT LIST FY 23/24 (AMENDED JULY 18, 2023) TO BE FUNDED BY SENATE BILL 1 FUNDS
WHEREAS, Senate Bill 1 (SB1) also known as the Road Repair and Accountability Act of 2017, was signed into law on April 28, 2017; and WHEREAS, SB1 provides funding for road maintenance, rehabilitation, and safety projects which is split between the state, cities and counties; and WHEREAS, eligibility for SB1 funding includes City Council approval of list of possible transportation projects provided to the California Transportation Commission (CTC) before July 1, 2023; and
WHEREAS, the State estimates annual funding available to the City of Watsonville through SB1 to be approximately $1,279,915 for FY23/24; and WHEREAS, the Watsonville City Council adopted Resolution No. 112-23 (CM) approving the SB1 Project List FY23/24 at its June 13, 2023 meeting; and WHEREAS, California Transportation Commission staff notified the City that it would need to amend its June 13, 2023 Project List to be compliant with program guidelines and eligible for funding.

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 supporting a funding plan does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct

Reso No. ______ (CM) 2
Meeting Date: 071823
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 City Council hereby approves the 2023 City of Watsonville – SB1 Project List FY23/24 (Amended July 18, 2023) for the City of Watsonville which is attached hereto and incorporated herein as Exhibit “A.” ************************************

City of Watsonville - SB1 Project List (Amended 07/18/23) FY23/24
Name/Road/Limits Description SB1 Share
of Project
Cost
Completion Useful
Life
Citywide Restriping Restripe roadways at various locations within City including Airport Blvd and Freedom Blvd 350,000 FY23/24 1-5 Yr
Freedom Blvd Improvements from Alta Vista Ave
to Green Valley Rd
Reconstruct roadway, remove & replace non-ADA compliant driveways & curb ramps, install high visibility crosswalks, upgrade existing bus shelter, install new traffic signal at Sydney Ave 500,000 FY23/24 20 Yr
Green Valley Rd Reconstruction from Freedom
Blvd to City Limits
Reconstruct roadway, install median island, remove and replace non-compliant driveways & curb ramps, restripe roadway & provide bike lanes where none exist. 1,081,313 FY23/24 20 Yr
Green Valley Rd Safety Provide safety improvements on Green Valley Rd, including striping, signage and traffic calming 50,000 FY23/24 1-5 Yr
Maintain Roads Perform road maintenance including overlay or placement of three-layer coating system on road surface to extend useful life of roadway including Harvest Dr, Loma Prieta Ave & Roache Rd 170,482 FY23/24 5-7 Yr
Road Repair Road repair work including repair of potholes and pavement damage at various locations within the City including Freedom Blvd 250,000 FY23/24 5-10 Yr
Exhibit A
1 of 1 Page 367 of 506
1 Reso No. (CM)
Meeting Date: 062723
ORDINANCE NO. FINAL ADOPTION (CM)

AN UNCODIFIED ORDINANCE OF THE CITY OF WATSONVILLE

INCREASING THE COMPENSATION FOR EACH MEMBER OF THE

CITY COUNCIL, AND THE MAYOR, PER MONTH, AS PERMITTED BY CALIFORNIA GOVERNMENT CODE SECTION 36516
WHEREAS, on June 28, 2022, the City Council enacted Ordinance No. 1435-22 (CM), in which it increased City Council compensation. The increase comprised an increase in salary from $607.75 per month to $638.14, which included a $10 per month contribution by the City for the provision of a term life insurance policy for all Council Members and the Mayor; and
WHEREAS, Government Code Section 36516(a)(4) provides that a city council may enact or amend an ordinance increasing compensation provided that the increase shall not exceed an amount equal to five percent (5%) for each calendar year from the operative date of the last adjustment of the salary when the ordinance or amendment is enacted, and that no ordinance shall be enacted or amended to provide automatic future increases in salary; and
WHEREAS, Government Code Section 36516(d) provides that any amounts paid by a city for retirement, health and welfare, and federal social security benefits shall not be included for purposes of determining salary, provided that the same benefits are available and paid by the city for its employees; and
WHEREAS, all Council Members and the Mayor receive a life insurance benefit that is also provided to City employees. The City pays that benefit on behalf of the Council, at a cost of $10 per month. This amount is included in the salary paid to Council Members; and

2 Reso No. (CM)
Meeting Date: 062723
WHEREAS, pursuant to City of Watsonville Charter Section 502, the Mayor shall receive as compensation $100 per month in addition to their compensation as a member of the Council; and
WHEREAS, it is deemed fair and equitable that this ordinance be enacted to implement the will of the electorate which delegated the right to approve such increase to the Council.

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

SECTION 1. ENACTMENT.

That the salaries of the Mayor and Council Members shall be increased by 5%, from $638.14 to $670.04 per month for each City Council Member, including the Mayor.

The Mayor shall receive an additional $100 for a total compensation amount of $770.04.

These compensation amounts include a $10 per month contribution by the City for a life insurance benefit. All increases shall be effective December 23, 2023.

SECTION 2. RECITALS.

The City Council finds and determines the foregoing recitals to be true and correct and hereby makes them a part of this Ordinance.

SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT.

The City Council finds that this Ordinance is exempt from the provisions of the California Environmental Quality Act (“CEQA”) pursuant to Section 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a “project,” as defined in Section 15378 of the CEQA Guidelines.

3 Reso No. (CM)
Meeting Date: 062723
SECTION 4. SEVERABILITY.

If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

SECTION 5. PUBLICATION.

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

SECTION 6. EFFECTIVE DATE.

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

1 Reso No. (CM)
Meeting Date: 07/18/23 SWZ ______ RM ______
RESOLUTION NO. __________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

APPOINTING ERIC STURM TO THE CITY OF WATSONVILLE

PERSONNEL COMMISSION
[DISTRICT 5]
WHEREAS, Section 908 of the Charter of the City of Watsonville established a seven member Personnel Commission with specific powers and duties; and WHEREAS, Section 902 of the Charter of the City of Watsonville authorizes each member of the Council to appoint one member to each City board or commission subject to approval by resolution of the Council adopted by at least four (4) affirmative votes.

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

1. Adopting a Resolution appointing a member to the Personnel Commission 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.

2. That Council Member Clark hereby nominates Eric Sturm for appointment to the Personnel Commission (expires December 2026), representing District 5.

3. That the Council hereby approves such appointment.

4. That the City Clerk is hereby directed to transmit a copy of this resolution to the newly appointed member and to the Secretary of the Personnel Commission. ********************************

7/13/2023 8:25:59 PM
C:\Program Files\eSCRIBE\TEMP\20255641550\20255641550,,,Report - Wats Public Library Strategic Plan 2023-2028.docx Agenda Report
MEETING DATE: Tuesday, July 18, 2023
TO: City Council
FROM: LIBRARY DIRECTOR MARTINEZ
THROUGH: CITY MANAGER MENDEZ
SUBJECT: RESOLUTION ADOPTING WATSONVILLE PUBLIC LIBRARY

STRATEGIC PLAN
RECOMMENDED ACTION:

Staff recommends that the City Council adopt a Resolution adopting the Strategic Plan 2023-2028 for the Watsonville Public Library.

BACKGROUND:

Our community’s library programs and facilities improve the quality of life of our residents and although the City offers a variety of exceptional services, the Library Department has the potential to deliver services more effectively, more strategically, and more future focused.

The Strategic Plan serves as an action plan that is relevant, practical, and achievable given our economic restraints and potential. This plan aligns with the City of Watsonville’s Strategic Plan; articulates the library’s priorities and guides policy decisions; and enables staff to develop feasible, actionable strategies to address priorities, implement policies and allocate resources effectively.

DISCUSSION:

In February 2023, the Library hired MJ Gómez Associates LLC to identify focus areas using the “turning outward” methodology developed by the Harwood Institute. This methodology puts community aspirations first by collecting information about and engaging in conversations that are more community-focused and proactive to community issues. Using this approach, MJ Gómez Associates conducted research regarding issues impacting the lives of Watsonville residents, conducted a community and staff survey, interviewed key stakeholders, and conducted three focus groups. Working closely with library leadership, they developed a plan that supports longer-term growth opportunities over a five-year period.

The Strategic Plan 2023-2028 ~ Watsonville Public Library outlines the following goals:

7/13/2023 8:25:59 PM
C:\Program Files\eSCRIBE\TEMP\20255641550\20255641550,,,Report - Wats Public Library Strategic Plan 2023-2028.docx  Goal 1 - Increase access to library resources by implementing bookmobile service and adding weekend hours.
 Goal 2 - Increase public awareness about library services by working with a communication consultant/firm to identify target audiences, key messages, create a communications strategy, and measure its effectiveness by conducting an annual community survey.
 Goal 3 – Streamline in-house process re: technical services, circulation services, IT, by exploring contracts with 3rd party vendors, or the City of Watsonville.  Goal 4 – Work with local nonprofit organizations and city departments to promote the arts and function as one anchor for downtown development.

Details regarding the process that was used to identify the goals and recommended strategies are outlined in the attached Strategic Plan.

STRATEGIC PLAN:

The library’s strategic plan supports the City’s Strategic Goals:
2-Fiscal Health
5-Community Engagement & Well-Being
6-Public Safety
FINANCIAL IMPACT:

The agreement with MJ Gómez Associates for this work was for an amount not to exceed $30,000. Library services are funded by a voter-approved quarter-cent sales tax for libraries (Measure R, approximately $3.9M) and the General Fund ($548,686) per year.

Therefore, the Strategic Plan serves as an annual workplan for the Watsonville Public Library and any personnel and operational costs needed to implement this plan will be funded by the Library Fund [0150-620].

ALTERNATIVE ACTION:

The City Council may choose to:

1. Adopt the Strategic Plan with recommended changes

2. Not adopt the Strategic Plan
ATTACHMENTS AND/OR REFERENCES (If any):

None.

Reso No. (CM)
Meeting Date: 071823 SWZ ______ RM ______ Library ______ 1 RESOLUTION NO. __________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

APPROVING THE WATSONVILLE PUBLIC LIBRARY STRATEGIC PLAN 2023-2028

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

That the Watsonville Public Library Strategic Plan 2023 - 2028, a copy which is attached hereto and incorporated herein by this reference, is hereby approved. ********************************

STRATEGIC PLAN 2023 – 2028

PREPARED FOR THE WATSONVILLE PUBLIC LIBRARY

ALICIA MARTINEZ
PROJECT TEAM – MARTIIN J. GOMEZ, JENNIFER SWEENEY, AND GRACE STETSON [email protected]

1 Execu(ve Summary
A new five-year strategic plan has been proposed for the Watsonville Public Library. The plan was created using the “turning outward” methodology developed by the Harwood Ins(tute.

This methodology puts community aspira(ons first by collec(ng informa(on about and engaging in conversa(ons that are more community-focused and proac(ve to community issues.

Using this approach, MJ Gómez Associates conducted research regarding issues impac(ng the lives of Watsonville residents, conducted a community and staff survey, interviewed key stakeholders, and conducted three focus groups.

Working closely with library leadership, we have developed the following goals:

Goal 1 - Increase access to library resources by implemen(ng bookmobile service and adding weekend hours.

Goal 2 – Increase public awareness about library services by working with a communica(ons consultant/firm to iden(fy target audiences, key messages, create a communica(ons strategy, and measure its effec(veness by conduc(ng an annual community survey.

Goal 3 - Streamline in-house processes re: technical services, circula(on services, IT, by exploring contracts with 3rd party vendors, or the City of Watsonville.

Goal 4 – Work with local nonprofit arts organiza(ons and city departments to promote the arts and func(on as one anchor for downtown development.

Details regarding the process that was used to iden(fy the goals and recommended strategies are provided below.

MarWn J Gómez, Principal Project Consultant

2 WPL Strategic Plan 2023 - 2028
Background – Project Scope
In March 2023, MJ Gómez Associates LLC was awarded a contract to create a new strategic plan for the Watsonville Public Library to replace the library’s prior strategic plan that covered the period from 2020 to 2023.

The scope of work for the new strategic planning project requested by the Watsonville Public Library listed the following ac(vi(es:

1. Facilitate the strategic planning process using a methodology effec(ve for public libraries.

2. Gather data through community research that focuses on library users, non-users, and stakeholders, including Board and staff, to iden(fy Library needs/wants.

3. Facilitate planning mee(ngs and input sessions (public, Board, and staff sessions).

4. Review the current mission and vision statements and facilitate revisions if needed.

5. Iden(fy service priori(es, goals, objec(ves, and ac(vi(es.

6. Write and present the strategic plan that will be communicated to the library’s stakeholders.

Background & Context
In 1895, Watsonville Public Library (WPL) was integrated into the government of the City of Watsonville. Like many communi(es around the country at the (me, the city received a grant from Andrew Carnegie to build a new library that opened in 1905 with the condi(on that the local municipali(es agreed to fund library opera(ons. The Carnegie-funded library was later replaced with a new building that was dedicated in 1976; in 2008, a new main library was built as part of a new civic center complex at 275 Main Street. WPL operates a branch library, located at 275 Main St and the Freedom Branch, located at 2021 Freedom Blvd.

The current mission of WPL states:

The Watsonville Public Library provides a variety of information, materials, and services in a welcoming place where people come to gather, learn, and celebrate our multi-cultural community.

The mission statement is strong, yet general enough for the library to meet many current and future community library service needs. We note the WPL would benefit from a vision statement as well as adop(on of a core set of values.

3 Methodology
The research methodology was based on the “turning outward” approach created by the Harwood Ins(tute for Public Innova(on.1 This is a methodology for assessing community needs that “entails taking steps to bejer understand communi(es; changing processes and thinking to make conversa(ons more community-focused; being proac(ve to community issues; and pukng community aspira(ons first."
The project was divided into three phases:

1. Research, Discovery and Analysis

2. Community Engagement

3. Report and Presenta(on of Findings
Phase 1: Research, Discovery, and Analysis
Research began with a review of recent topics important to Watsonville residents and city government portrayed in local publica(ons such as The Pajaronian, minutes from previous city council and library board mee(ngs, a review of the 2005 City of Watsonville General Plan, and the 2021 Community-wide Survey conducted by GreatBlue (selected pages – Ajachment 1).

During the research phase, we learned that the City of Watsonville has been undergoing a series of leadership transi(ons. In addi(on to the 2021 appointment of Alicia Mar(nez as library director, in July 2022, René Mendez — former city manager in Gonzalez, California — was appointed Watsonville’s new city manager by the city council. In November 2022, voters elected three new council members, and re-elected another council member for a second term.

During the same 2022 elec(on, voters approved an increase in sales tax that is es(mated to bring an addi(onal $5.1 million to the general fund. The addi(onal revenue will be used to upgrade and upkeep Watsonville’s parks and roads, as well as its library and older adult services.

Prior to the November 2022 elec(on, Santa Cruz Local, an online publica(on,2 asked Watsonville residents to iden(fy issues they were concerned about prior to the elec(on. They cited:
• A need for more youth ac(vi(es.
• A need for more businesses that cater to young people and families. • Help with rent.
• Safer streets for walkers and cyclists.
• Bejer quality jobs and higher wages.
1 h$ps://theharwoodins2tute.org/tools-blog/category/Turning+Outward 2 h$ps://santacruzlocal.org/elec2on/2022-nov-08/elec2on-guide-nov-8-2022-watsonville-city-council-candidates/

4 According to the U.S. Census, in 2022 Watsonville was es(mated to have a popula(on of approximately 51,500 closely divided equally between male and female. Close to forty percent (39.8%) of the popula(on iden(fy as “white alone” and eighty-four percent (84.3%) iden(fy as Hispanic or La(no. Nearly sixty-four percent (63.9%) of the popula(on 25 years or older are high school graduates or higher and nearly eleven percent (10.7%) of individuals 25 years or older have a bachelor’s degree or higher. Nearly thirteen percent (13%) of the popula(on live in poverty. In 2021, the per capita income was $29,183 and the median household income for the period from 2017 – 2021 was $67,007.

Watsonville's main industries are construc(on, agriculture and manufacturing. Its primary economy is based on agri-business and crop distribu(on.

According to the City of Watsonville's 2019 Comprehensive Annual Financial Report, the city's top employers are:
# Employer # of Employees
1 Pajaro Valley Unified School District 4,108
2 Monterey Mushrooms Inc. 870
3 Watsonville Community Hospital 591
4 Granite ConstrucYon 557
5 Lakeside Organic Gardens LLC 450
6 City of Watsonville 427
7 Salud Para La Gente 422
8 S MarYnelli & Co. 290
9 Fox Factory 265
10 West Marine Products 247
A major role for many public libraries is to meet the academic needs of students (K-12), especially those who ajend schools without libraries run by cer(fied school media specialists.

Watsonville's public schools are under the jurisdic(on of the Pajaro Valley Unified School District (PVUSD) and have an enrollment of about 20,000 students from kindergarten through 12th grades.

Charter schools in Watsonville are under the jurisdic(on of the PVUSD and include Diamond Technology Ins(tute, Alianza Charter School, Linscoj Charter School, Pacific Coast Charter School, Watsonville Charter School of the Arts, and Ceiba College Preparatory Academy.

Private schools in the city include Green Valley Chris(an School, Moreland Notre Dame, Monte Vista Chris(an, Mount Madonna School, Pojer's House Community Chris(an School, St. Francis Central Coast Catholic High School, and Salesian Elementary and Junior High Schools.

5 Student performance, as measured by the California State Department of Educa(on -CAASPP – California Assessment of Student Performance and Progress, indicates the following 2021 results for PVUSD:
• 27.20% Met or Exceeded Standard for English Language Arts and Literacy • 17.26% Met or Exceeded Standard for Mathema=cs
Phase 2: Community Engagement
The community engagement process included two surveys - a staff survey and a community survey, (Appendices 1 and 2), three facilitated focus groups,3 and seven stakeholder interviews.

Progress reports were provided at two mee(ngs of the library Board of Trustees, two mee(ngs of the project advisory commijee (appointed by the library director),4 and a goal-sekng workshop with senior library staff.

When we asked library staff to iden(fy the most cri(cal issues that should be addressed as part of the WPL strategic plan they men(oned the following items:
• Mee(ng needs of community members without adequate means. • Improving library outreach.
• Working with the city to meet community needs.
• Improving programming.
• Enhancing safety in the library.
• Improving access to technology (public computers).

Service Priori(es
Historically, public libraries have played a variety of service roles such as providing access to books and other materials, ater-school homework help, and adult literacy tutoring to name a few.

We asked those who ajended one of three focus groups to rank service priori(es and roles that they thought that the WPL should offer. The list included several current and emerging services and roles provided by many public libraries.5 The majority of the respondents indicated that they would like to see the WPL be a library that:
• Create(s) young readers by offering programs and resources aimed at early childhood literacy and,
3 Focus groups included a staff focus group, educator focus, and a focus group that included representa2ves from the Watsonville nonprofit community.
4 Carol Heitzig, Watonka Addison, Alicia Mar2nez, Ruth Landmann, Shirley Flores-Munoz 5 A copy of the Service Priority survey is a$ached as Appendix 3.

6 • Serve(s) as a lifelong learning center, addressing the desire for self-directed personal growth and development opportuni(es.

Other priori(es included a desire for WPL to offer services that support and improve adult and teen literacy and helps residents express their personal crea(vity by providing tools such as 3D printers, musical instruments, recording equipment, and sewing machines to generate and share crea(ve content.

SWOT Analysis
The data that we collected through this process provided insight into the community’s percep(ons about the strengths, weaknesses, opportuni(es, and threats facing WPL. Not surprisingly, they also mirrored many of the same issues cited prior to the 2022 elec(on. Chart 1 represents a summary of the comments from the data we collected in the format of a SWOT analysis (strengths, weaknesses, opportuni(es, and threats). Complete results from the staff and community surveys are included as Appendix 1 (Staff Survey) and Appendix 2 (Community Survey).

Chart 1
SWOT – Watsonville Public Library
Strengths Weaknesses
• Place for families to congregate
• Children’s programs
• Friends book sales
• Culture programs
• Classes & workshops
• Feeling welcome
• Programs for babies and toddlers
• Online eBooks (Libby)
• Technology lending (hot spots)
• No weekend hours
• Parking
• Spanish classes for kids
• Wait time for online books
• No curbside book drop
• Programming for people with
different abilities
• Group meeting space
• Difficulty navigating ILL and reserves
Opportunities Threats
• Cultural arts programming and
performances
• Clubs for kids (chess, book clubs)
• Craft programs
• Roof top garden
• Seating (lounge and comfortable
chairs)
• Connections with the business
community
• “How to” programming (emergency
prep. financial literacy, health, and
nutrition
• Afternoon programs
• Community classes
• Promotion and marketing
• Visitors feel unsafe/security
• Inconvenient hours
• Transportation to the library
• Inconvenient hours
• Exterior lighting after sundown
• Access to digital content for those
without equipment
• Closure during Christmas break
• City funding
• Dedicated IT staff

7 Phase 3: Report & Findings
WPL is a highly valued community resource. The community wide survey conducted by GreatBlue noted that nearly all respondents either ''strongly agreed'' or ''somewhat agreed'' that the City of Watsonville library ''contributes to a posi(ve quality of life in Watsonville'' (98.2%) and that ''the library contributes to lifelong learning'' (98 %).

Respondents to the community survey that we conducted stated they are highly suppor(ve and strong users of the Watsonville Public Libraries, indica(ng that they would like more informa(on resources in all formats, more programming across interest areas such as book clubs, author talks, ac(vi(es and programs for children, educa(onal programming of all kinds especially for job seekers, social and cultural/arts events, emergency preparedness, community events, local history, community organizing, adult educa(on for literacy and GED.

The community survey offered the open-ended ques(on: “What else, if anything, would inspire you to use the WPL more?” The responses with the greatest frequency as illustrated on Chart 2 below, was a desire for more hours, followed closely by more programs and more books.

Both Charts 2 and 3 are presented here to highlight two recurring themes from the community surveys and focus group mee(ngs: hours of service and accessibility. Regarding access, parking was a theme repeated oten. Respondents noted that there was no simple pathway from the municipal parking garage directly into the library and that the lack of adequate building ligh(ng made them feel unsafe at night.

Code Frequency
Hours 37
Programs 30
Books 27
Programs - Children 19
Parking, transportation, location 18
Positive (general comment) 17
Personal 14
Facilities & spaces 12
Policies 9
Technology 9
Communication 8
Spanish, other languages 7
eResources 5
Staff 5
Volunteers 2
Chart 2

8 When people were asked why they don’t use the library, they stated that the lack of weekend hours and loca(on were
inconvenient (Chart 3).

Currently, only the
Freedom branch library
provides weekend hours
on Saturdays from 12 to 4
pm. During discussions
with staff about providing
addi(onal hours at the
Main library, two issues
emerged. Due to the size
of the Main library
(46,000 square feet in
two stories), staffing the
opera(on was a
challenge. Secondly,
because of the lack of
retail services,
restaurants, and
recrea(onal ac(vi(es
downtown, very few
people frequent the
downtown area on the
weekends where the
library is located.

Previous ajempts to
open the Main library
oten resulted in extremely low numbers of library visitors on weekends.

Again, more parking and more free parking are desired. Safety is a concern, especially regarding individuals with mental health challenges and unhoused individuals in the library and nearby.

City officials in Watsonville cited plans are underway to revitalize the downtown area including working with Caltrans to make Main Street (which fronts the entrance to the Main Library) more pedestrian and bicycle friendly. The city recently launched a new mixed-use housing and retail development project in the immediate area that they expect will increase the vibrancy of and encourage more weekend ac(vi(es in the downtown area.

Library Metrics
Compared to libraries serving popula(ons of similar size and square miles, WPL performance metrics appear to be within the range of the selected group of peer libraries. However, it is Chart 3

9 important to note that the size of the WPL service footprint is nearly twice the size of any library in the peer group, meaning that the staff must provide service within a larger envelope.

LIBRARY NAME Population Card Holders Total FTE Revenue Square Miles Square Foot WATSONVILLE PUBLIC LIBRARY 51,366 40,771 25 $3,253,320 6.00 46,000 COVINA 48,333 33,071 11.27 $1,022,425 7.00 20,144
PLACENTIA 51,173 55,960 25.75 $3,091,564 7.00 22,800
WOODLAND 60,978 36,777 13.19 $2,025,472 8.00 23,000
EL CENTRO 44,997 6,303 11.00 $729,663 8.00 14,163
Recommended Goals with Jus(fica(on
On May 18th, a facilitated goal-sekng workshop was conducted with members of the WPL leadership team. At the workshop we presented eight poten(al goals based on areas of focus that we derived from the community analysis. The purpose of the workshop was for those in ajendance to priori(ze the goals that they thought to be achievable over the next 5 years.

The following eight goals were presented for review:

1. ACCESS - Increase access to library resources by implemen(ng book mobile service and adding weekend hours.

2. AWARENESS - Improve community awareness about library services by working with a communica(ons consultant to iden(fy target audiences, key messages, create a communica(ons strategy and target audiences, and measure its effec(veness by conduc(ng an annual community survey.

3. EFFICIENT OPERATIONS - Streamline in-house processes re: technical services, circula(on services, IT, by exploring contrac(ng op(ons with third party vendors.

4. ARTS - Posi(on the library to be a key player in the development of Watsonville as a cultural arts community and des(na(on.

5. INCLUSION - Foster greater inclusion in the community by serving as the City’s informa(on center for the Spanish-speaking and indigenous communi(es.

6. ASSESSMENT - Ins(tute a culture of assessment for library programs to ensure their effec(veness.

7. FAMILIES - Re-align library programs, events, and collec(ons to emphasize familyoriented ac(vi(es and,

10 8. CAPITAL IMPROVEMENTS - Work with the city to iden(fy space improvements at the Main Library to create an outdoor pa(o, and a small performance theater.

As a result of the goal-sekng workshop, four areas of focus and related goals were iden(fied for the WPL strategic plan. The jus(fica(on statements were prepared by the consultants. The ac(vi(es and proposed (meline for each of the goals were developed by ajendees of the goalsekng workshop.

Over the next five years, WPL will focus on:
• Increasing access to library resources.
• Improving community awareness about library services. • Streamlining processes related to collec(ons and managing technology. • Suppor(ng the arts community in Watsonville.

Goal 1 - Increase access to library resources by implemen(ng bookmobile service and adding weekend hours.

Area of Focus: ACCESS
Jus7fica7on:
• Responds to overwhelming request from community survey respondents. • Using the current “Bibliovan” and ul(mately a future bookmobile provides a low cost, efficient strategy for marke(ng the library and building an audience for underserved segments of the community.
• Bookmobile service will expand visibility of WPL at community events, schools, and senior centers.
• Recent advances in bookmobile vehicles are more fuel efficient (available in hybrid models) and can provide WiFi connec(vity – opera(ng as mobile branch libraries. • A gradual approach to rolling out weekend hours on a limited test basis can help build momentum and awareness about the library especially when paired with other librarysponsored programs and/or downtown events.

Strategy for Weekend hours: (evaluate effec(veness and staffing needs as we go; work with Human Resources)
When Frequency Notes
Year One Open Main Library on
Saturdays for 4 hours, once a
month
Offer a program
Year Two Open Main Library on
Saturdays for 4 hours 2X per
month
Offer a program

11 Year Three Open Main Library on
Saturdays for 4 hours every
week
Increase programming and
recruit addi(onal staff
Year Four Open Main Library on
Saturdays for 6 hours per
week
Increase
programming/events/staff
Year Five Open Main on Saturday for 8
hours each week
Increase
programming/events/staff
Goal 1 (con(nued) – Bookmobile Outreach Strategy
Year 1
• Take the (current) Bibliovan sponsored city events such as Na(onal Night Out and (e into events that are already happening. Create an Outreach Master Plan. Use Geographic Informa(on Services (GIS) computer-based mapping technology to determine geographic areas in need.
• Begin explora(on regarding the current state of library bookmobile service, the specifica(ons and costs that relate to an acquisi(on of a mid-size bookmobile/biblioteca ambulante. The cost and funding to purchase, staff, shelve, and maintain the vehicle including the feasibility, staffing, insurance needs, partnerships, alliances.

Year 2
• At least 4 visits per year to events and loca(ons such as the senior center, Second Harvest Food Bank, farmer's market, park cleanups, Earth Day events, free lunch programs. Connect with community partners (Science Workshop, Parks and Recrea(on events, etc.) who already have a presence. Where are they and can we come, too? Have a plan to get the bookmobile greenlit.

Year 3
• At least 8 visits per year to community loca(ons. Con(nue finding more loca(ons for visits, pulling from those above and new connec(ons. Hopefully funds have been iden(fied to purchase a mid-size bookmobile. Staff picks out the interior of the bookmobile. Community votes on exterior wrap.

Year 4
• Establish monthly visits u(lizing the new mid-size bookmobile to local community areas with limited access to the library or limited access to informa(on about the library or

12 libraries in general. Con(nue to u(lize the BiblioVan to provide services to homebound individuals.

Year 5
• Increase visits to 24 per year, at least twice per month. Resist the urge to paint racing stripes on the new bookmobile.

Measure success on a yearly basis through surveys/assessments and adjust tac(cs as needed.

Goal 2 – Increase public awareness about library services by working with a communica(ons consultant/firm to iden(fy target audiences, key messages, create a communica(ons strategy, and measure its effec(veness by conduc(ng an annual community survey.

Area of Focus - AWARENESS
Jus7fica7on:
• WPL has a well-developed poryolio of library programs and services that a large segment of the community is unaware of.
• WPL lacks internal exper(se to crat a professional communica(on strategy. • Library and community data exists that can be “mined” to iden(fy market gaps. • A regular understanding of community needs can be used for con(nuous service improvements.

Year 1 through Year 5
• Develop a request for proposals for a communica(ons consultant. • Assign a staff person to be the point person who work with the consultant to develop performance metrics such as:
o Increased program ajendance.
o Increased traffic on digital playorms.
o Evaluate what to focus/improve upon the following year. • Measure success on a yearly basis through surveys/assessments and adjust tac(cs as needed.

13 Goal 3 - Streamline in-houses processes re: technical services, circula(on services, IT, by exploring contracts with 3rd party vendors, or the City of Watsonville.

Area of Focus – OPERATIONS
Jus7fica7on:
• Community survey respondents stated that they want quicker access to more books, eBooks, and other library materials.
• Collabora(ons between, among, and with libraries can result in cost savings that could result in greater efficiencies.

Year 1
• Establish a maintenance/repair/replacement schedule for computer equipment and sotware updates.
• Work with city administra(on to create a more responsive IT (cke(ng system that focuses on “on-call” services, unprocessed orders, and basic IT training for internal staff.

Year 2
• Establish an agreement with the City IT department to have a dedicated IT staff posi(on in the library (20 hours minimum).
• Convert exis(ng Technical Services and Circulation staff that are 20-hour employees to 40-hour employees to expedite copy-cataloging and other library processes. • Year 2 and ongoing – work with contract vendors to:
o improve electronic resource wait (mes.
o explore lending agreements with nearby systems.
o iden(fy best prac(ces for the physical processing of materials and provide training for internal staff.

Year 3
• Automate the physical handling of materials by purchasing an Automated Material Handling System (AMH). Immediate check-in of materials returned by patrons and highspeed library book sor(ng makes the materials in demand reach the next patron as fast as possible.

Year 4
• Budget and recruit addi(onal staff to support the increase of opera(onal hours and book budget alloca(ons.

14 Goal 4 – Work with local nonprofit arts organiza(ons and city departments to promote the arts and func(on as one anchor for downtown development.

Area of Focus – ARTS & COMMUNITY DEVELOPMENT
Jus7fica7on:
• Focus group par(cipants from the nonprofit sector shared a vision for Watsonville as a community that values and supports the arts and the local ar(sts. • WPL’s loca(on and space are ideal for hos(ng events, exhibits, and suppor(ng workshops for the art community.
• WPL can be an ac(ve par(cipant in support of the literary arts community – as seen in its sponsorship of the poet laureate and youth poet laureate program.

Year 1
• Assign a staff person to be the point person who will be responsible for exploring partnerships (or co-sponsor) with exis(ng organiza(ons to develop a shared agenda and possible roles for WPL.
• Work with exis(ng art studios/galleries to con(nue to expose artwork in the library to students and the wider community during open studios.
• Explore op(ons for crea(ng new exhibi(on space for art shows in the main library and the foyer of the building.
• Revisit the WPL policy on mee(ng rooms to make the spaces more accessible to the wider community.

Year 2
• Create an online (or “lendable”) audio tour guide to Watsonville arts and murals. • Work with city hall to “warm-up” the building lobby including the possibility of construc(ng an outdoor roof-top pa(o on the Main Street side of the building.

Conclusion
Watsonville is a community in transi(on seeking to redefine its image, economy, and position as the second largest city in Santa Cruz county. The Library is in a good posi(on to contribute and par(cipate in shaping Watsonville's future.

Well-managed public libraries stay in touch with their communi(es and base the services, programs, and policies on local community needs. It is our conclusion that the Watsonville Public Library has been well-managed and has done a very good job of offering programs for young children, students, and provided opportuni(es for lifelong learners – especially for adults seeking assistance to improve their reading and English-language skills.

15 The challenge for WPL is that not enough residents are aware of the many programs and services that it has to offer. This strategic plan has been developed to improve the library’s visibility in the community and to strengthen partnerships with organiza(ons that can amplify its visibility.

Next Steps
Þ Present the strategic plan to the Board of Trustees for review and approval.

Þ Use the proposed goals as a framework for the budget proposal to the City.

Þ Develop and finalize an organiza(onal workplan based on the goals.

Þ Assign library managers to develop workplans designed to advance the goals.

Þ Set up performance measures and metrics for library managers.

Þ Submit bi-monthly progress reports and updates to the Board.

1 Watsonville Public Library Strategic Planning Ini7a7ve Staff Survey 2023
The staff survey was open from April 7 to April 14, and collected 21 responses from library employees (excluding volunteers), for a response rate of 84%. Ques7ons covered sa7sfac7on with current posi7on or role, what’s working well and what needs improvement in the library, and community issues to be addressed.

Sixteen out of 21 respondents were very sa7sfied or sa7sfied with their current posi7on, and all 21 felt that the library was doing an excellent or good job fulfilling its mission to the community. More than half of respondents have worked at the library 10 years or longer (13 out of 21).

The most important issues to be addressed in the plan included mee7ng needs of community members without means to access the library, improving library outreach, working more with the City to meet needs, improving programming, enhancing safety for people in the library (customers as well as staff), and improving access to technology including public computers.

Staff noted several barriers to success, including a need for more City support/funding and staffing shortages, likely leading to other issues described in the survey: long technical services processing 7me, and planning, communica7on, and technology challenges. Staff would like to see more programs and services for young people as well as Spanish language speakers, a more ac7ve Friends organiza7on, and specific improvements in facili7es and spaces and beYer maintenance.

Despite the challenges, staff feel that the library operates well, that customer service and programming are excellent, that staff work well together and support each other.

Detailed responses to survey ques7ons are provided below.

Q1. Overall, how sa0sfied are you with your current posi0on/role? Appendix 1

2 Q2. Overall, how do you rate the Watsonville Public Library in fulfilling its mission to the community? Q3. What do you consider the most important community issue(s) that should be addressed in the new strategic plan?
Access
• Accessibility
• Digital divide; housing, poverty, and unhoused and balancing access for all • the library serves to bridge the access and resource divide and promote scholastic and professional achievement for our residents.
• I would love for us to have a real Bibliovan with a library collection that travels around town to underserved areas on a set schedule.

Language
• I would like for us to continue developing programs for the community in both Spanish and English.

Outreach
• Outreach. Reaching patrons who do not have the means to come to us. We need to create a regular schedule (even once a month outing) for the bibliovan. This is a great resource that is being under-utilized.
• more outreach to the community
• us as staff visiting and engaging more at various school sites and classrooms voicing all thats offered at the library to both students and parents.
• Outreach to young adults and teens.
• Outreach is important because we have so many community members who cannot travel all the way to our locations. I would love for us to have a real Bibliovan with a library collection that travels around town to underserved areas on a set schedule.

3 Partnership
• We need a better plan for helping displaced people and we need help from the city to accomplish that.

Programs
• It seems like a lot of people want more children's programs and really value the ones that are already offered.
• I would say getting our community more familiar with technology and the new updated uses of technology with applying for a job, finding a job and so forth. • Our library plays a key role in fostering more technological, economic, and community development--health, safety, artistic expression, and self-actualization will go a long way to support a better quality of life here, especially in terms of services for youth. Watsonville is under-resourced when compared with neighboring communities; the library serves to bridge the access and resource divide and promote scholastic and professional achievement for our residents.
• I would like for us to continue developing programs for the community in both Spanish and English.
• We need a better plan for helping displaced people and we need help from the city to accomplish that.

Safety
• Safety. We are having issues with mentally ill, addicted & homeless people. • Mental health, dealing with difficult people. More coping skills for staff and people on the front lines.
• provided a safe place for families for learning and literacy. a safe community space for all.

Social-economic factors
• Digital divide; housing, poverty, and unhoused and balancing access for all • provided a safe place for families for learning and literacy. a safe community space for all. We need a better plan for helping displaced people and we need help from the city to accomplish that.
• Watsonville is under-resourced when compared with neighboring communities • We need a better plan for helping displaced people and we need help from the city to accomplish that.

Technology
• I believe that new computers are needed at the library. Many patrons seem to have trouble accessing Gmail and they struggle with computers randomly shutting down or freezing.

4 Q4. What major obstacles in your position or department are impeding library success? City funding & support
• Everyone loves our libraries…but libraries cannot survive on love alone. While we are blessed by robust support from a public that deeply values our services and have twice voted overwhelmingly in favor of the quarter-cent sales tax that funds libraries countywide, we, unfortunately, are not seeing similar commitments from the City of Watsonville leadership via the general fund. The small contribution the City makes to the library budget is not commensurate with the demands of modern-day operations and expectations. It seems easy to showcase the library as a most popular and cherished department, and then backburner our needs, balancing budgets on all of our uncompensated work. For the library to really thrive we need to carve out a new arrangement.
• Funding, mostly. We're a smallish town library, and the funding is relatively stable, which is nice.

The funding is also not likely to rise much, so we are not going to be able to make a splash with something as game-breaking as a mobile library or a person to staff it.

Management & planning
• Favoritism
• lack of knowledge and oversight /management of various things. There are functions in the library that have no one really leading/in charge, (in the sense of actively managing/checkins with follow up/ following timelines/etc) which leads to staff filling in or making their best guess.

I find this the case with programming, and in aspects of the library media team, and in conjunction with the changes of moving away from having our own in-house IT person and now collaborating with the City IT for our needs.

I realize everyone is doing the best they can with the knowledge and training and experience they have, truly.

It concerns me that staff have had to adjust to not having the same level of support that they have had in the past with technology. In the past, we had an inhouse IT person, so when the projector stopped working we could call them and they would work/fix/find a workaround solution so we could serve our own departmental needs and for those of the public who use our space. Now, if that same thing happens, it's a frantic call to someone who may or may not answer/be available in City IT and staff with no knowledge (or even with knowledge, no access/permissions as they are not IT) are able to fix the problem. This makes us look really bad when people rely on us to use our equipment and we can't make it work for them. Additionally, while some things have moved to a new form of management (like our ils now being cloud hosted) - other things like our library devices used for programming, have no one regularly managing them, making sure they are up to date and functioning. That now falls on staff, to discover, usually shortly before the program where they need the devices, whether or not they will work. Or, in my own personal experience, having had IT help get things working and set up, and then having everything fail 10 mins after my program started and IT had already left for the day.

It also concerns me that no one in the admin team has extensive programming experience. That lack of experience shows through in the management of programs and how staff are expected to more or less figure a lot out on their own. I get frustrated when multiple major things overlap that could have been avoided with better planning/foresight, and staff feel the need to run at triple time to pull it off (and they do because they are amazing team players) - but then that level of 300% becomes the expected norm, partly because admin doesn't fully understand the

5 actual amount of work/time some things take, and because staff (equally on them) don't articulate the challenges they are having with managing expectations/workloads.

Technical services processes
• Time constraints on getting the books to the public. TS can use better shelving, we are outgrowing our space. If there was some way to streamline the carts and the shelving it would make workflow better
Staffing
• short staffing
• Too many part time positions. The Library needs to offer more full time positions. • I would say our staff limitations. We can only do so much outreach and programming while also covering the desk shifts. I'd love to have computer classes begin for the community on a regular basis but it is difficult to dedicate staff to it on a regular basis because they also have many other tasks and duties that they need to do.
• I believe across all positions in the library we need more staff. Each person has to perform the job of approximately 3-4 people. There is a much greater need for staff. With additional staff, each person can truly not have to multitask to the extreme and they can focus on providing excellent service for the patron.

Technology
• Technology is not easily accessible or stress free. Having an IT person in-house would alleviate this.
• more tech help.

Q5. What aspects of library operations and services most need to be addressed? Programs & services
• Understanding how COVID and disasters have affected our community and everyone. • I would say more services for teens/tweens. The outreach as well to these schools could be greater.
• Also, more programs that target needs of our Spanish speaking and Mestizo community. Also, more lifelong learning programs for young adults - financial literacy, resume writing, cover letter writing, interview practice.
• Also, events that work for schedules of community as balanced with library staff Technical services processing
• Tech Services should be able to process books in a timelier manner. This need should be more prioritized. Books should be on shelf when released not 2-3 months after they arrive. Create more full time circ staff positions to allow TS more time in the back and less time on service desk.

FOL
• Friends of the library needs to be more active and inclusive. Programming funding should not be restricted so much.

6 Facilities & spaces
• ‘We need new white boards in the study rooms.
• We need more room for new books.

Teen room could be a much more engaging place. Look at ways to draw in teens and have them participate in library events. More teen clubs. After school time in the teen room with staff oversight.
• We should have listening stations where people can listen to language CD's in house. Or at least loan out CD players for patrons to utilize the CD format.

Safety
• balancing access for all with library users who make the library uncomfortable or unsafe Staffing
• Most need is schedule, staff
• The lack of staffing and the need for someone dedicated to the big picture and managing projects and timelines to focus workloads and keep staff from spinning their wheels and burning out.

Over time we have lost (particularly in the reference/admin staff) at least 120 work hours (3 full time positions) if not more. This work has been absorbed by the remaining staff.

Everyone has been troopers about this fact, but the long and the short of it is I worry people will get to the point where they have no more drop of anything to put to anything (constantly functioning on burnout) as we have consistently since we moved to this building done more and more and more and more and more. ....with less people and less people over time.

Speaking particularly to the admin level staffing, we've lost both a senior librarian position and a second principal librarian position. 2/6, or 1/3 of the admin team was cut. The workload left from both those positions can only be picked up by 2 of the remaining 4 admin members. So our current principal librarian and library director are attempting to do two peoples jobs as one.

While they do their best, it simply isn't possible to actually do that.

For both staff and admin, we are all doing way to much at a decent and passable level, but not able to really dedicate ourselves to doing anything really well. For myself, I find this personally infuriating, as a take pride in my work and it irritates me that I have to say good enough and move on. It also means many things are falling through cracks or not even considered and left as oversights as our focus is dividing far to thin among too much work to do.

I know the idea of having the bibliovan have regular stops and go around the community has been floated, first when we got it and more recently. We literally do not have the staffing to pull this off. I fear, while this strategic planning process will bring up many good ideas, many of which the staff would actually LOVE to do - the reality is without the staffing to do it, it's kinda a moot point. And I do not believe that asking the existing staff who are already working consistently at 200% should be asked to somehow take on and manage more. • Staffing issues. The Library is always under staffed. • having more staff
• Staffing. We need better staffing to provide safe and quality service to the public. • The need for additional staff should be addressed
• Staffing, hours

7 Technology
• Technology is difficult to use for programming. The system to access materials is red taped and without IT staff on site there is too much of a risk in running into problems.

Web catalog/webpage is not user friendly. There are too many options (pathways) to get to the same location. Please consider doing a card sort project with staff to make this better.

Meeting room technology should be upgraded to avoid continued issues. • It would be good to have more hotspots because they are useful for people without at-home internet, and they almost always have holds on them.

It would be easier to have cloud printing upstairs and downstairs. • technology
• The library needs its own dedicated, in-house IT department. Since the loss of our two full-time IT positions, we have endured a drastic hampering of our capabilities and efficiencies. This has set us back horribly and imperiled our capabilities on a day-to-day basis. As a result, we are in a reactive, not proactive mode at best, and at worst, we are moving back in time, not forward. • This is a pretty well run library, and I think most of the issues are in process of being addressed. I do wish we had a more responsive IT situation, because we have a few recurring IT issues with our computer lab that have been unresolved for months. Some library users are finding other places to go because our computer capabilities, without support, are not up to handling even basic needs, like accessing Gmail.
• more freebies for kids, free books, bookmarkers, goodie bags, makes them want to come back to the library more and more.

Q6. What aspects of library operations and services are working well? Customer service
• Our staff's presence in the library in addressing community issues and library issues is amazing.

They are consistently doing amazing work to be better and do better for everyone, as well as supporting one another through these different challenges.

Circ/lab staff and reference team, ya'll are awesome.

In public facing, our team does a truly amazing job.
• customer service to patrons
• Friendliness, connection to the community
• I think the way we as a library assist patrons everyday in the library and outside with our services.
• customer service
• we have excellent customer service
Programs
• Programing, fun topics, good engagement.
• There are awesome programs made available to our community. The library has played an integral part in providing info and services throughout all the flooding disasters, COVID and more.
• children's programs
• We also have great children's programs and creative staff that work hard in educating kids while having fun.

8 • children's program
• the programming is wonderful
• Partnering with local resources (lobby days) and businesses to promote local culture and profits.

Management
• I like the freedom and opportunities the leadership team allows to the rest of the staff. We are each treated respectfully and as important parts of the library, and we are able to thrive by showing our best aspects. Library operations run really well overall. Services are a work in progress, but I have no complaints about the progression. • Marketing and calendars
Services
• Checking out and returning items, automatic renewals, no more fines • ILL
• Our LibraryLink program is a great service that has been helpful for our homebound community, having different signage and bilingual staff that fits the community's major languages of Spanish and English.
• ILL services, getting newly published books,
• the Libby app.

Staff
• We are fortunate to have an amazingly talented, dedicated, creative, and brilliant staff as well as many vibrant community friendships! From our wonderful library director to our student page interns, this is an awesome team of caring people and I feel extremely honored to serve alongside them. Library staff members are inspired to go above and beyond because they love this community. They are juggling many facets of library service, including circulation, technical services, creation and curation of digital and print content, reference and readers’ advisory, outreach, programming, and community engagement via partnerships. I am proud to see them doing it with such enthusiasm and verve.
• This library is a excellent, kind and hardworking team of people. It is truly a wonderful place to work.
• doing everything as a team
• Staff communication and teamwork
• The staff is the best thing about the library.
• I think the Library in general is doing a great job with all services we offer, despite being under staffed.

9 Q7. If you could change one thing about your workplace today, what would it be? Facilities
• It isn't possible to change this, but our parking situation certainly leads to a lot of issues in people getting to programs. Many people with mobility issues have said they don't go to the Main location due to their inability to find parking that allows them to easily get in and out of the library. They will drive to Freedom to avoid the main branch. • A maker's space as a well or some sort of designated eating area for socialization, enjoyment, studying.
• maintenance needs have also been deferred at growing costs Management
• Better internal communication
• relationship between management and rest of the organization.

Safety
• We should have some security. Patrons may suddenly cause some disturbance or make other patrons feel uncomfortable/unsafe and we have to wait for an officer to arrive. It would be much better if we had someone supportive as security who could make patrons feel welcome but keep everyone safer.

Staffing
• more money for more staff, lol
• more staff
• More staffing, particularly for admin and reference. I don't know enough about circulation to know if they also need more staffing, but if they do, then them too. • Have more full time positions
• There’s a lot of temporary positions. I wish there were more opportunities for regular positions • If I could change one thing, I would provide additional staff for this workplace. • I would make it cleaner and safer, with more staff
• We would receive durable funding from the City to be able to recruit and retain staff at levels that will enable some of our prep-pandemic open hours to be reinstated and bolster the library digital and print collections.
• have an on site tech to help with various technology related issues. • In-house IT, security, and maintenance needs have also been deferred at growing costs.

Sustainability
• Be more sustainable. Start be making Sierra default to not print a receipt at close. Slips are not necessary and most patrons just toss it. At the very least we should start asking patrons if they even need a receipt. We can also stop printing and shredding the study room forms. Just have someone read the form and then change their sierra account right then.

Technology
• More technology check outs and units available for the public.

10 Q8. How long have you worked at the Watsonville Public Library? Q9. Any other comments that you would like the strategic planning consultants to be aware of? Meets community needs
• I would love to see this library be a safe and clean space that can take care of peoples needs today and in the future. I love the idea of a library that serves the needs from birth to old age. A library that meets the needs of its community and grows and adapts according to the needs of the community.

Management
• I really need leadership to be more conscientious about everything going on and managing timelines better.

While there is nothing wrong with having four press releases in a month of major library news, it would have been better spaced out. Bombardment marketing rarely works out well.

I know they are doing their best and their own workloads are likely too much, but we minions are dependent on their awareness and careful planning to guide us through.

We are so used to being overworked here that we function from a point of 1. what is an emergency. 2. What fires do I need to put out 3. What problems can I fix today.... and then the work day is done. Time for reflection and careful planning rarely happens, not because people are bad at their jobs or bad people, but simply because their workloads are too much.

If additional staffing will not be considered, then radically adjusting and refocusing the workloads, roles, and reasonable expectations of staff and how much we can really get done needs to happen, and be set clearly with defined boundaries, so workload creep doesn't happen.

Safety

11 • Communication training using Non Violent Communication - it focuses on our personal bias and works to shift perspective lens
Facilities & spaces
• Dreaming big! - transform the outdoor patio: add a coffee kiosk and small fake grass area for programming (or outdoor play for kids).
• I think the upstairs computer lab needs a better layout, it should be both a computer lab and have a corner space for various computer classes or "one on ones" some sort of divider between the two.

Staffing
• My last comment is provide additional staff so everyone on the team cannot feel as stressed and can provide more time and attention to the patrons.

Jennifer Sweeney & Associates LLC
April 18, 2023

1 Watsonville Public Library Strategic Planning Ini7a7ve Community Survey 2023

SUMMARY
As part of its strategic planning process, the Watsonville Public Library conducted a community needs assessment survey to gather informa7on on public percep7ons of library use, including current services and programming and desired new services. The online survey was open from April 6 to April 21, 2023 and was available in Spanish as well as English. The survey was also available in printed form. The survey was distributed via email to library card holders as well as community leaders, and posted on the library and City websites, and social media plaHorms. In order to reach non-library users, the survey invita7on was also shared with local schools and nonprofit organiza7ons, including Encompass Community Services, Pajaro Valley Shelter Services, and the Community Founda7on Santa Cruz County, and others. Five hundred and three responses were received. The age distribu7on of the respondents was similar to that of the adult popula7on in Watsonville; educa7onal aPainment of survey respondents was somewhat higher, with more college-educated individuals comple7ng the survey than in the overall popula7on.

Respondents are highly suppor7ve and strong users of the Watsonville Public Libraries, indica7ng that they would like more informa7on resources in all formats (print books, ebooks, digital magazines and newspapers), and more programming across interest areas as well as types of programming (book clubs, author talks, ac7vi7es and programs for children, educa7onal programming of all kinds especially for job seekers, social and cultural/arts events, emergency preparedness, community events, local history, community organizing, adult educa7on for literacy and GED). People also expressed a strong desire for increased library hours, especially on the weekends, and to expand programming to those hours and days to improve access to the library and programs. More parking and more free parking is desired.

Safety is a concern, especially regarding individuals with mental health challenges and unhoused individuals in the library and nearby.
• Respondents are frequent library users, with half using the library one to more than five 7mes a month.
• 64% use the library email newslePer or website to find out about library events and news. • 62% come to the library to borrow books, DVDs, and other materials. • 74% feel that more books and other informa7on resources are important • 67% feel that STEM, arts/cultural, and summer reading programming is important Detailed results for each survey ques7on are provided on the following pages.

Appendix 2

2 Q1. How o.en have you visited the Watsonville Public Libraries in the past year? (N=497) Forty percent of respondents use the library 1 to five 7mes per month, with about the same number coming in once every few months. About 10% are power users in the library more than five 7mes per month.

Q2. Which library locaKon do you use most o.en? (N=479) Seventy-three percent of respondents use the Main Library; 18% use the Freedom Branch. Fiver percent use the library website or some kind of online library services (Libby, etc.). Eleven respondents said they use both libraries equally. Other libraries used include Santa Cruz County, Las Selva, and Prunedale.

3 Q3. What do you like to do when you come to the library? Choose all that apply. (N=492) A large majority (63%) indicated they come to the library to borrow books, CDs, and other materials.

Fiay-five percent read or browse the collec7on. One quart to one third of respondents like to spend 7me with their children, aPend programs, access the wifi, study, or use the library computers. Less than 20% of respondents use study rooms, visit exhibits, download electronic resources, ask ques7ons, use online databases, or aPend mee7ngs. Very few (3%) said they come to volunteer. Other ac7vi7es men7oned included visi7ng or dona7ng books to the bookstore (12%) and borrowing park passes. 2%
3%
10%
10%
12%
12%
12%
13%
13%
15%
18%
20%
23%
25%
27%
28%
55%
63%
Not applicable
Volunteer
Meet with friends or coworkers
Attend a meeting
Use online databases and resources
Ask a question
Download ebooks, music or video
Visit or display an exhibit
Something else:

Work
Use a study room
Use a library computer
Study, do homework
Access free wifi
Attend library programs
Spend time with my children
Read or browse the collection
Borrow books, DVDs, CDs
0% 10% 20% 30% 40% 50% 60% 70%

4 Q4. What are the reasons you don’t use the Watsonville Public Libraries? Please select all that apply. (N=260)
The most prevalent reason cited for not using the library was that the hours were not convenient (42%).

Parking was also noted as a barrier by a third (33%). Other reasons include concern over incurring fines, not having the types of materials people want, especially popular and new items, items taking too long to arrive. Safety concerns regarding homeless individuals was noted by 16 respondents (6%).

5 Q5. Please rank the following potential changes / improvements in resources based on what is most important to you and your family. (N=450)
Seventy-four percent of respondents said that more current books and other resources were Very important or Important, with 67% rating more open hours Very important or Important. More downloadable ebooks, videos and music was also considered important by 59%, and more Spanish language materials (49%). Increased bookmobile service was considered important by 39%.

6 Q6. Please rank the following potential changes / improvements in programming based on what is most important to you and your family. (N=443)
Programming for children, teens, and families was considered Very Important or Important by close to two thirds of respondents (58%, 59%, and 60% respectively). Spanish language programs (56%), programs for toddlers (49%), adults (54%), and seniors (54%) was also rated Very important or Important by half or more.

7 Q7. Please rank the following programming options based on what is most important to you and your family (N=447)
Close to two thirds of respondents ranked STEM, arts/cultural events, crafts, summer reading as Very important or Important. Homework help, programs for job seekers, storytime, adult literacy, computer classes, consumer health, and programs for parents/caregivers was ranked similarly highly by over half.

8 Q8. What do you or other members of your household like to do in your free time? Select all that apply. (N=450)
Three-quarters of respondents said they enjoyed indoor activities like reading and watching TV, while two thirds enjoy outdoor activities like hiking, hunting, fishing, and camping. Arts and crafts are also popular with 63%, as is gardening and landscaping. About half enjoy fitness, shopping, eating out, and computer related entertainment like gaming and social networking.

9 Q9. How do you prefer to hear about library news and upcoming events? Select all that apply. (N=441)
Two thirds of respondents prefer to hear about library news in the email newsletter, with over half getting their information from the library website. Library displays are used by 41%. Instagram, printed materials, local news media was noted by about a third.

10 Q10. What is the zip code of your home? (N=501)
A large majority (83%) of survey respondents were from zip code 95076, with a handful from 95019 and 95003. Fifteen other zip codes noted by small numbers (one to six respondents each) are listed below.

11 Q11. What is your age? (N=440)
One quarter of respondents are between 30 and 39 years old, and another quarter over age 65. The rest of the age groups are distributed in a fairly balanced bell curve around the center. This distribution is similar to the City of Watsonville overall, with fewer young children and adults 40 to 64 represented in the sample.

Q12. Please tell us about any children living in your household (select all that apply). (N=438) Close to half of the respondents have no children at home. About one in five has a child or children under age five, and 41% have school age children in the household.

12 Q13. Which of the following best describes your education? (N=442) About a third of respondents have a college degree, and an additional quarter have a graduate degree.

About a third of respondents have some college or a two-year college degree.

Q14. What is the primary language spoken in your home? (N=440) Two thirds of respondents speak English at home, with one quarter speaking both English and Spanish.

Twelve percent speak Spanish at home. Other languages noted included Zapotheco, Mixteco, Tagalog, Dutch, Filipino, Taiwanese, Portuguese, French, and Arabic.

13 Q15. What else, if anything, would inspire you to use the Watsonville Public Library more? (N = 195) One hundred ninety-five respondents took the time to share their suggestions for services, resources, or issues that would make it easier or more likely for them to use the library more often. In terms of overall volume, the most comments concerned expanding hours of operation. Closely following hours was a desire for more varied programming of all types, but also with an emphasis on children’ programs.

Respondents would also like to see the library provide more books, both physical and electronic, in Spanish as well as English, and other information resources.

Respondents also asked for improvements in access to parking, including closer parking and more free parking. Several respondents felt uncomfortable in the parking structure. Safety and security is a concern, especially regarding unhoused individuals in the library as well as near the library entrance.

The full text of responses to this question is provided below.

Code Frequency
Hours 37
Programs 30
Books 27
Programs - Children 19
Parking, transportation, location 18
Positive (general comment) 17
Personal 14
Facilities & spaces 12
Policies 9
Technology 9
Communication 8
Spanish, other languages 7
eResources 5
Staff 5
Volunteers 2
Books
• new books
• More new books,
• More books , either new or older ones available at the Freedom Branch library • more books on disc
• Show casing new books that have arrived at the library • More books
• Wider selection of books.
• More Audiobooks in science subjects
• updated books
• New books.

14 • More books about strong women like Mother Angelica (founder of EWTN), Mother Teresa and Susan B. Anthony . I'd also like a wider selection of new books, especially by natural history writers. I'd also love more middle school and teen audio books to choose from. • More copy’s of books
• I have aging parents that utilize and love the library specifically borrowing audio books on CD.

My mom is not super comfortable using tech so this is super important to her.

It would be great if you could either use or check out board games at the library! • Knowledge of programs/events.

More current books.
• More books by indigenous authors, i would like to see a land acknowledgement display to educate on who knew how to take care of this land before it was "Watsonville"; preferably at the Freedom branch.
• I do not read much because of time, but I do like listening to audiobooks. However, Watsonville Library needs more audiobooks to share. I am on the waiting list for 2-6 months, depending on the book. If Watsonville can get, more licensing on popular books would be great. • More books for those that are popular. There have been times when I want to borrow a book but there are a lot of people already waiting for it.
• Everyone is so friendly and inviting and informative. • I use the library mainly for borrowing books. Love that you are here. But I am sure other people would appreciate more library programs for children and families. • Books I was interested in, activities maybe
• We love the idea of borrowing books instead of buying them • More books and DVDs on how to play musical instruments. For example, the diatonic and piano accordion, guitar, piano, ...
• The collections are great.
• More book selection for regular and e books would be great. Also have to say your employees are wonderful.
• My 7-year-old daughters like taking out books from the library. • More current/new books for children…especially new series or books that are coming out. My child requested a couple of books and but the library had t purchased them yet since we heard it is a long process.
• occasionally check out materials, especially when the grandchildren visit. Also like to browse at the "used book store
• I really like to go read and take my children
• More books in Spanish
• Learn English and read books
• Ul7mately I am interested in books.

Communication
• email with new play away books
• Glad we have this valuable resource.
• I love our library. but it is not utilized enough. The more information and activities the better.

Each month in the Watsonville calendar sent with our water bill maybe, have something about the library every month? Thank you for this survey.
• I LOVE the email reminders on due dates and auto renewal on borrowed books.

15 • Information about local environmental, educational, political and perhaps other areas that impact people living in our community.
• We have a bookmobile?!?
• Is there a flier in Spanish that summarizes your resources and hours? • Thanks for reminding me of all the outreach and community services you offer! eResources
• Access to digital collection.
• Would love increased availability/shorter wait times for new literary fiction in the digital library.

Would also be nice to be able to add more books to my queue (limit now is 10 books) because some books take a very long time. Thank you.
• more 60s rock cds
• More books on Libby!!!
• I mostly use the Library services for Audiobooks. I have used the Libby system and it's ok. Before relocating to Watsonville, I lived in a city where the Library used Hoopla instead. I found that Hoopla had a bigger selection, generally no wait times, and was very easy to use. Please consider adding Hoopla as a digital option.

Facilities & spaces
• Please please please look in to Burgeon Group…. Their library installations are incredible!!! Ever since visiting the one in Vancouver, Washington public library I have been following them and praying one day a local library would bring them here. They build innovative, creative, beautiful, educational and playful experiences for libraries only! Please consider the amazing value a customized interactive installation could bring to our community. I’m not affiliated with them at all, just a huge fan! Check them out! (No pun intended) https://www.burgeongroup.com/ • The need of clean water for water bottles. Updated Changing stations for babies • A roof garden
• ". Have always found the environment clean and comfortable • kid designated chill out area with comfortable seating, I am really trying to build a good relationship between my children and their love of books. I am not sure if there is a reason behind why the kids area is on the bottom floor, but I was thinking maybe it would be a better space for the kids section?
• Please install a curbside book drop like Monterey, PG. Hate to walk up to the "homeless hideout" in front, in Winter, after dark. Please install brighter lighting above "New Books" and a small table to set my book bag on.
• More lounging areas.
• i am inspiring to visit the library because all the time is very clean and organized • More comfortable seating for reading.
• Meet up group space availability, community classes
• Work on the voice noise level and disruptive customers/patrons. • Larger facility

16 Hours
• It would help me if the library was open on Sunday since that is a day I have off. Open on weekends.
• expanded hours
• More hrs. For more services.
• I would use the library more if it opened earlier.
• Better weekend hours and welcoming front desk staff :) • Weekend hours
• weekend hours
• Having programs in aaernoon / evening (5-6 pm). I work in morning during children’s programs • I work with farmworkers and they are not free to attend until after 6pm. We tour the library and promote the library---but many activities occur while they are at work. • Early morning hours especially during the summer. Saturday hours at main library. • I would appreciate the Watsonville Libraries to more accessible hours (including weekends) especially for working class families who work late and/or don’t have time during weekdays. • Weekend hours
• Again, more availability for weekend programs and decent open hours on the weekend. • weekend kids/family activities. As a working parent, it is challenging to do the afternoon weekday activities with young children who have early bedtimes. • If open on Sundays and more activities for adults and in person classes. • Open on weekends, earlier on weekdays,
• I use the library Monday thru Friday
• Sunday hours and full day Saturday hours!
• Open hours during weekends.
• That the library is closed during Christmas vacation is a huge dis-service to year round resident families, we it turn primarily reject you to favor Gilroy / Santa Clara county and Pajaro bookmobile / Monterey co and la selva beach / Santa Cruz. • Longer hours, weekend hours.
• Weekend hours availability
• I would like to come in on weekends. If you are able to open weekends, it would be really nice. • More open hours
• It would be convenient to have the downtown library open on Saturdays and longer hours on weeknights.
• I use it quite often, but Saturday hours downtown would be good… • Extend the Friday hours to close at 8 PM like the rest of the week, and may be open half a day on Saturday?
• Saturday hours
• Be open during weekends?
• Weekend hours, staff recommendations for fiction and nonfiction books. • Open on Saturdays
• Extended hours
More open hours, especially at Freedom Library. Be open on Fridays-Sundays 1pm-6pm, 7pm, or 8pm.
• During school and college, I would have liked to have longer hours to go and study at the library on nights and weekends because at the time the Starbucks only stayed open until 9 and it would

17 get packed quickly and get loud. My friends and I would either go to the McDonald's or fast food restaurants in town, or leave to the late night cafes in Santa Cruz. • more hours and new releases,
• More story times at evening hours to make it accessible for working parents • A lot of the programming for toddler or craft events are always on the same day of the week that does not work out for us. We would like to see more of these events on the first half of the week.
• Baby Lap time offered during later hours or weekends. The current hours make it hard for working parents to attend.
• Weekend hours.

Parking, transportation, location
• Improved/more parking closer to the entrance.
• Longer parking times.
• More parking would be very convenient there is only a few spots in the front sometimes easier parking
• Addi7onally Main St library is near me
• Free Parking
• Transportation directly to the library.
• easier & more accessible parking
• PARKING!! Please remove the flowers in front of building and put in 3-4 more 20 min spaces.

Change to 30 min.
• I want a library in Pajaro or Royal Oaks
• Easier parking.
• More parking
• More free parking in downtown Watsonville near the main library.

I prefer the Freedom library, which is closer to Corralitos and has free parking there. • I would use the library more if I could get a free bus ride to the library with my library card. • When I am no longer working close to another library system, I will use Watsonville more. • Satellite location or bookmobile by my house
• Safer roads to bike to the library
• Convenience of location,
• I would use the library more if it was closer to my home. • When the power goes down a lot in my neighborhood throughout the year, we end up at the Freedom library there to use the electricity there, etc. sometimes.

Personal
• Retirement
• It's me, not you. I'm just overwhelmed.
• If I had more free time (haha)
• Less Covid.
• More free time
• Summer break!

18 • If I had more time to read!
• Time
• My lack of public library use is no fault of the library itself • I need more time.
• I think they're fabulous and I'm always meaning to participate more. • Having a car again!!! (my car died during COVID). Hopefully, I’ll be back soon. • I love them both, but I don't have a lot of time, even though I have retired since I'm trying to survive, living in a very expensive area of the country! • The library was my favorite place when I was a teenager. And then when I had my children I always checkout books for them and me. Now I read much less, Policies
• I love the library but it being a safe space is my number one concern. • I don’t know if this policy is still intact but at one point the library was not allowing high school students in during school hours. I am a college student, but I think this policy is more harmful than helpful for high school students. It is not the library’s job to make sure students are in school; it is the library’s job to provide resources. Kicking high school students out of the library will not keep them from skipping school it will just remove the student from the library and they will likely end up spending time out in the streets where they are more susceptible to trouble. • homeless and drugged people hang around the library which is unsafe for me and my children and it makes me not want to attend maybe security would be more • more funding
• Stop providing pornographic materials directed to underage kids under the guise of "LGBT awareness" and "anti-book burning events"
B. Provide equal sources of positive and negative materials for both political parties.

C. Lose the progressive indoctrination targeting children. • Addressing the issue of homeless gathering in and around Main St Library, and issues this causes such as bathrooms being out of service, feeling uncomfortable, unsafe, etc. • Security
• Assuring me that library is safe to visit as it relates to covid • How about incorporating itself or aligning with The Santa Cruz Library System. That would yield a much greater library experience on many, many fronts. It is so absurd that So. County Lib.

System is separate from the greater population in North County. What are we in 1950? Positive
• It can be a great resource for the community, so seeing more members of the community using it more
• i am love this place i want to say thank you to all the person’s to have public library at the comfortable house for all the community. !"#$%
• Having a free safe place to go and access books and just be is so so important. • Both of your libraries are wonderful with the art displayed and nice and helpful staff, and the ability to order audio and regular books.
• The library is fine how it is in my opinion

19 • convenient I love the Watsonville library. reading and interest in books are amazing for all ages.

BOOKS ARE KNOWLEDGE ♡
• Thank you!!!
• We have been loving the scavenger hunts and the fun computers!! • You all are doing great and we really appreciate all that librarians do, as well as the importance of libraries in our community!
• I love the library. Staff is great and welcoming.
• The story time is amazing
• I love the library as is.
• Watsonville Public Libraries are the best!!
• Grateful to have a wonderful library!
• We love the library! Thanks for all you do :)
• Always enjoy my visits there
• Keep doing what you are doing. And keep the wonderful staff that are working so hard for the community
Programs
• Open mic events where community members can showcase their talents would be a great way to being the community together.
• We enjoyed the technology workshop on virtual reality.

Day of the dead event.

The representation of multi-cultural holidays and festivities.

The sowing class is coming up we look forward to building new skill sets.

More events with authors
More events.

Collaboration with local artists
• The Watsonville library has always been a really important place for me growing up in Watsonville, I grew up in a low-income family and my parents worked a lot, but always made time to take us every few weeks so we could load up on books and learn and explore the world through reading. I would have loved the opportunity to have more craft or learning workshops, and I still would!!
• Job support for community
Law support for community
• And bookclubs to be able to meet people and share a great book together! • I would like to have fun at the library!
• I would like it if there was more programs
• We use both branches. We love the children's programs. My daughter really enjoyed dinner reading, the art activities last summer, and Beth's recent family science night series. I really appreciate all the fun activities staff plans for community members of all ages. I would be interested in a book club or other activities focused on social justice, local history and activism, More sewing classes! Thank you!
• More community event programs
• More interesting events.
• Book Clubs or author events
• A writer’s group or writing workshops.

20 • Community organizing/advocacy
• Have rotating activities for all ages.
• Book clubs
• environmental issues.
• More community events. More educational classes and events. The library should be a place we all come to learn something new, where we come to be inspired and moved. There should always be something new to do at the library, something to look forward to within the community.
• I would enjoy some form of book club books to be available at the library • I am inspired and would like to see more social, arts, and cultural events and programs.

Historical information and events that are representative of the people in this community. • Financial literacy (Investment, Home buying, business, Socio political info local and national to keep people up to date and active; Emergency preparedness (cpr, emergency evacuation etc, self-defense, allergic reactions etc) ; Health alternative health care (such as functional/naturist methods, exercise and in depth diet information such as nutrients and processed foods that could help people make cleaner choices. History topics and how they’re relevant to modern era, • programs for homeless
• Adult education GED
• Calligraphy, journaling, stationary for 30-year-olds
• Reading groups to discuss books that we read together. I tried to have my own little group years ago, but there wasn't enough structure. Not that it should be rigid! :-) • More programs or events for adults
• Book clubs for adults.
• art lectures
• I would like to see community reads, book signings, events in the afternoon (after 4pm).

It would be great to have events geared for different age levels, but also events that the whole family can participate in. It's nice to do things/read things as a family and community, but sometimes, as parents, we also like to do things/read things geared more toward adults, i.e., true crime, romance, etc.
• cultural events, collaborative events and projects with local non- profits • More programming online or hybrid.
• Community Resource Days...maybe to learn all that the library may offer community members, like introduc7on class or a library faire day w/ various representa7ves of your programs, an open house to learn.
• Learn to read, expose my kids to informa7on & help with studies • More programs / ac7vi7es for families
• That they would have classes or workshops on computers • More family events
Programs – Children
• The children, thank-you
• Support my children in their love of reading & enjoy a fun moment with them • That my children become more interested in reading & learning • Más actividades y programas para niños pequeños y para la familia

21 • Tener más días de lectoras. Y de niños - 5- en adelante • More programs for toddlers x3 a week
• Do more days of Toddler Storytime
• Children stories
• More toddler 3-5 activities
• Mis hijos
• more kid programs
• A preschool type class for kids to learn to read/write. • evening activities for preschoolers after 5:30 whether it’s crafts or book fair or story puppet time something that they can learn from and have good memories about the library even the music for toddlers you guys hold in the morning that would be awesome to have in the evening • More arts and crafts activities for young kids (5-10 years old) at the freedom branch • Book club for school age kids.
• My son loves doing activities at the library therefore I would like to see more events that inspire children and young adults to come to the library.
• Would love some additional baby/toddler lap time in the afternoons/evenings for working parents.
• Baby and toddler programs on the weekend.
• More activities and programs for kids. Workbook materials availability for kids. Latest books availability for adults
• My child is into Graphic Novels, so if this was highlighted or an event around this we would attend.
• I would really like to see a chess club for youth and potentially adults. There is a great one at the Capitola library for kids 6-18 and it is great. So many kids attend it and kids of all ages play together. Our community needs this! The music summer event at the main library several years ago was great. Would love to see more of those types of family and kids events. • ASL program/ story time
Staff
• Meeting the staff, or knowing who I might talk to when I visit • The staff are friendly, accommodating, and helpful.
• More welcoming look, feel and staff.
• I like the staff
• I already know your current library staff is awesome, helpful, and easy to work with.

Spanish, other languages
• Have more accessible updated books and materials in both languages (Spanish & English) and the accessibility to expand the hours of operation.
• I'd like more programs in Spanish early evenings or Saturdays. • Other language materials besides English & Spanish
• I would like to learn Spanish
• Bilingual events
• A Spanish class for kids that their school doesn’t have the option.

22 • We love the library, thank you for your services
Spanish material/books are great
Technology
• I think some improvement to your digital catalog. It seems as if there is no longer a "back" feature. When you perform a search, then select a title; you CAN NOT GO BACK". You have to begin all over again. Please give it a try, in the same way (computer / system) a patron would.

It's EXTREEMLY frustrating . . .
• Improve on the slow Internet.
• Download books through user friendly websites like Libby app (get most of my books from Santa Cruz Public Library this way)
• To learn how to borrow books online for my kindle white paper device. • The Library (especially at the Freedom Branch) gave me a place to access Wifi in order to find a job. I always felt welcome and noticed that there are a lot of people with limited resources taking advantage of the services provided. I think this is a good thing unless those people start to impede the comfort and safety of others.
• more user-friendly website for the library's catalogue. • Catalog system
• A Watsonville public library app would make it easier to request books. The website is not very user-friendly.
• easily search for new books at the library online, self-checkout at the Freedom branch.

Volunteers
• I would like to volunteer to teach arts and with reading/ comprehension support for children in English
• When my children were young, I wanted to expose them to as many things as possible, and due to economics, I would look for free experiences. I remember once driving to a public library in SJ to listen to Jazz during the week celebrating MLK. The main library had Art exhibits, live music, talks etc. It was wonderful. I lived in SJ for two years and took advantage of many services.

I often hear from folks I know in Aptos or other north county areas of classes they take at their libraries. I think we have many talented retired folks who might share their talents. Any thoughts?
Jennifer Sweeney & Associates LLC
May 5, 2023

Library Service Priorities
The list on the reverse side includes twelve (12) service options that public libraries might provide. No library can do an equally good job of providing all of the services.

Each community needs a different mix of services, depending on its particular characteristics and composition, and on what other resources are available.

This is an individual exercise, not a group exercise. Please indicate the importance of the services listed for the Watsonville Public Library (WPL) as follows:

In the box on the left, place a #1 beside the service you believe to be the most important for the WPL to pursue. Then, also in the box on the left, place a #2 beside the service you believe to be the second most important. Continue until you have ranked only five (5) of the twelve (12) service options.

Please do not sign your name. Please fold and return the sheet to me when completed.

Thank you.

Appendix 3

I Want My Library to…
…offer services that support and improve adult and teen literacy. …provide business and career information, including services related to jobseeking, personal finances, and entrepreneurship. …serve as an inviting public space to help people meet and interact with others in the community.
…provide technology and space to help residents connect with the online world. …create young readers by offering programs and resources aimed at early childhood literacy.
... help residents express their personal creativity by providing tools such as 3D printers, musical instruments, recording equipment, and sewing machines to generate and share creative content.
...focus on current topics and titles that reflect popular culture and social trends, including library classes and programs that provide a satisfying educational and/or recreational experience.
…offer educational support to students who are enrolled in a formal program of education or who are pursuing their education through a program of homeschooling. …provide ready reference answers to questions on a broad array of topics related to work, school, and personal life.
… offer computer and information literacy services that build skills related to finding, evaluating, and using information and technology effectively. …serve as a lifelong learning center, addressing the desire for self-directed personal growth and development opportunities.
…provide a wide variety of print, digital, and media-based materials that stimulate imagination and enhance leisure time.

TextText Text
A
t
A

Watsonville Public Library Strategic Plan 2023 - 2028
Presentation to the
Watsonville City Council
July 18, 2023

2 Agenda
• Project Overview
• Findings
• Community Issues & Aspirations
• Recommended Goals
• Next Steps

3 Project Team
Martín J. Gómez
Principal
Grace Stetson
Associate Consultant
Jennifer Sweeney
Associate Consultant

4 Approach –
Harwood
Institute
Community
Focused
Planning
Project Overview
• Learn About Watsonville
• Review Library Policies, Programs, and Services
• Staff & Community Survey
• Stakeholders Interviews
• Focus Groups
• Goal Setting Workshop
• Develop the Strategic Plan

5 Scope of Work
• Research, Discovery, and Analysis (community, library services & programs, peer libraries)
• Community Engagement (staff and community surveys, stakeholder interviews, focus groups)
• Create and present a five-year strategic plan (goal-setting workshop, prepare a new strategic plan)

6 Findings
• Key issues facing the community
 Desire for more youth-oriented activities
 Businesses that cater to young people and families
 High rent
 Safer streets for pedestrians and cyclists
 Better quality jobs and higher wages

7 Findings – Staff Survey
 Meeting the needs of the community without adequate means  Improving library outreach
 Working with the City to meet community needs
 Improving programming
 Enhancing safety in the library
 Improving access to technology

8 Findings – Community Survey
 Additional library resources in all formats - print books, ebooks, online magazines and newspapers.
 Expanded programming, especially for job seekers, emergency preparedness, local history, community organizing, adult education, literacy and GED.  Social and cultural/arts events, community events especially on weekends.  Book clubs, author talks, activities and programs for children.  Strong desire for more weekend library hours.
 More parking is desired – closer to the entrance of the library (safety is a concern)

9 Code Frequency
Hours 37
Programs 30
Books 27
Programs - Children 19
Parking, transportation, location 18
Positive (general comment) 17
Personal 14
Facilities & spaces 12
Policies 9
Technology 9
Communication 8
Spanish, other languages 7
eResources 5
Staff 5
Volunteers 2
What else, if
anything, would
inspire you to use
the Watsonville
Public Library
more?
Findings - Community Survey

10 Findings – Service Priorities
I want my library to…
• Create(s) young readers by offering programs and resources aimed at early childhood literacy and,
• Serve(s) as a lifelong learning center, addressing the desire for self-directed personal growth and development opportunities.

11 Recommended Goals
Goal 1 - Increase access to library resources by implementing bookmobile service and adding weekend hours.

Goal 2 – Increase public awareness about library services by working with a communications consultant/firm to identify target audiences, key messages, create a communications strategy, and measure its effectiveness by conducting an annual community survey.

Goal 3 - Streamline in-houses processes re: technical services, circulation services, IT, by exploring contracts with 3rd party vendors, or the City of Watsonville.

Goal 4 – Work with local nonprofit arts organizations and city departments to promote the arts and function as one anchor for downtown development.

12 Goal 1 - Increase access to library resources by implementing bookmobile service and adding weekend hours.
 Responds to overwhelming request from the community for greater access to library resources.
 Provides a low cost, efficient strategy for marketing the library and building an audience for underserved segments of the community.  Expands the visibility of the library at community events, schools, and senior centers.
 Allows the library to build momentum and awareness about the library especially when paired with other non-library sponsored programs and/or downtown events.

13 Goal 2 - Increase public awareness about library services by working with a communications consultant/firm to identify target audiences, key messages, and create a communications strategy. • Library has a well-developed portfolio of library programs and services that a large segment of the community is not aware of.
 Library lacks internal expertise to craft a professional communication strategy.
 Uses existing library and community data that can be “mined” to identify market gaps.
 Provides a continuous understanding about community needs can be used for continuous service improvements.

14 Goal 3 - Streamline in-houses processes re: technical services, circulation services, IT, by exploring contracts with 3rd party vendors, or the City of Watsonville.
• Community survey respondents stated that they want quicker access to more books, eBooks, and other library materials.
• Collaborations between, among, and with libraries can result in cost savings that could result in greater efficiencies.

15 Goal 4 - Work with local nonprofit arts organizations and city departments to promote the arts and function as one anchor for downtown development.
 Focus group participants from the nonprofit sector shared a vision for Watsonville as a community that values and supports the arts and the local artists.
 Library’s location and space are ideal for hosting events, exhibits, and supporting workshops for the art community.
 Library can be an active participant in support of the literary arts community – as seen in its sponsorship of the poet laureate and youth poet laureate program.

16 Next Steps
• Staff to develop a workplan that will outline the work over the next five years. • Publicize the goals and strategies on the library’s website and throughout the library facilities.
• Provide a yearly report to City Council about goals and strategies that have been met or are in progress; and adjust as needed.

Recommended Action:
• Staff recommends that the City Council adopt a Resolution adopting the Strategic Plan 2023-2028 for the Watsonville Public Library.

17 Carol Heitzig, President of the Friends of the Watsonville Library
Ruth Landmann, Library Board Trustee District 3
Shirley Flores-Munoz, Professor at Cabrillo College and MAIA Foundation (Migration & Adaptation in the Americas) Board Member
Alicia Martinez, Library Director
Watonka Addison, Principal Librarian
Members
Thank you - Project Advisory Committee

18 Questions & Contact Information
Martín Gómez (415) 999-9601 – [email protected] Jen Sweeney (916) 718-9442 – [email protected]
Grace Stetson (408) 368-5545 – [email protected]

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Agenda Report
MEETING DATE: Tuesday, July 18, 2023
TO: City Council
FROM: CITY MANAGER MENDEZ
SUBJECT: CONSIDER RATIFICATION OF FURTHER DEFERRAL OF

ON/OFF SITE PERMIT FEES AND DEFERRAL OF CLEAN UP
DEPOSIT FEES TO SEPTEMBER 1, 2023, RELATING TO THE
HILLCREST SUBDIVISION PROJECT LOCATED AT 511 OHLONE

PARKWAY, WATSONVILLE
RECOMMENDED ACTION:

It is recommended that City Council consider and discuss the request for further deferral of the On/Off Site Permit Fees to September 1, 2023, relating to the Hillcrest Subdivision Project located at 511 Ohlone Parkway; and by motion, either approve ratification of further deferral of payment of On/Off Site Permit Fees (“Fees”) to September 1, 2023, or deny ratification of further deferral of payment of the Fees.

In addition, the developer has requested the Council consider deferral of payment in the amount of $38,154.05 for the Clean Up Deposit agreed on in the Improvement Agreement entered into by the City and the Developer on December 12, 2022. It is recommended that the City Council consider and discuss the request and provide direction to staff.

BACKGROUND:

On June 15, 2017, an application for a Major Subdivision (Tentative Map) to allow the construction of 150 dwelling units on individual parcels on a 13± acre site located at 511 Ohlone Parkway, Watsonville, California, was filed by California Sunshine Development LLC, the applicant. At its August 28, 2018, meeting, City Council adopted Resolution No. 141- 18 approving a Tentative Map for Tract No. 1607. At its August 25, 2020, meeting, City Council adopted Resolution No. 161-20 approving a two-year time extension of the Tentative Map. At its July 6, 2021, meeting, City Council adopted Resolution No. 210-21 approving a First Amended Tentative Map for the Hillcrest Estates Subdivision. The amended Tentative Map included 144 lots with 5 single-family detached units, 60 duplex townhouse units, and 76-row townhouse units.

At its May 10, 2022, meeting, City Council adopted Ordinance No. 1431-22 approving a Development Agreement between Hillcrest Watsonville, LLC, and the City relating to the Project.

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On December 5, 2022, the City Council approved Resolution No. 241-22 approving a Public and On-site Improvement Agreement with Landco Hillcrest, LLC (“Developer”) for the Hillcrest Estates Subdivision, Tract No. 1607 located at 511 Ohlone Parkway and Resolution No. 242-22, approving a Final Map for Hillcrest Stage 1 Tract 1607 (“Project”).

The Improvement Agreement provides, among other things, for constructing the City Engineer-approved infrastructure improvements such as grading, drainage, and utilities within one year of agreement approval and provides financial guarantees to complete the work in the event of default. The Improvement Agreement also requires Developer to obtain an On/Off Site Permit for the proposed improvements and pay On/Off Site Permit Fees, which are identified in the Public and On-site Improvement Agreement, totaling $94,315 in Fees. On/Off Site Permit fees are typically required at the time an application is submitted for the On/Off Site Permit.

In May, 2023, Developer approached City staff to explore the possibility of issuance of the On/Off Site Permit, so that the On/Off Site work on the Project could commence, and a short deferral of the payment of the Fees due to various Project delays and adverse conditions attributable to the past winter’s storms.

Given the very short duration of the deferral of the Fees requested (thirty days) and the public benefits that would be derived from the continuance of the Project, the City Manager determined that a short deferral of the Fees could be made through a written agreement pursuant to his authority for the proper administration of all affairs of the City under Charter Section 703. Thus, on May 25, 2023, the City and Developer entered into an Agreement for Deferral of Payment of On/Off Site Permit Fees for Stage 1 of Hillcrest Subdivision (“Agreement”), which documented the Developer’s obligation to pay the Fees within 30 days (by June 26, 2023), specified that the On/Off Site Permit would be null and void if the payment was not made by that date and provided certain remedies to the City if payment of the Fees was not made in a timely manner.

The On/Off Site Permit was issued to Developer on May 26, 2023.

On June 13, 2023, the Developer requested a further deferral of the payment of the Fees to August 26, 2023. City staff and the City Manager met with the Developer to discuss this request but advised the Developer that the City expected payment of the Fees by the June 26, 2023 deadline. The Developer wrote to the City on June 21, 2023, and again requested a further deferral of the Fees. The Developer advised the City that due to substantial delays attributable to the winter storms and ensuing unbudgeted capital costs, the Developer was extremely hard-pressed to find the resources to pay the Fees and would not be able to pay the Fees by the deadline.

To avoid a complete shutdown of the Project and demobilization of the laborers, the City Manager, again under his administrative authority, agreed to enter into an Amendment to the Agreement (“Amendment”).

Although the original Agreement and Amendment were entered into under the City Manager’s administrative authority, the duration of the deferral requested by the Developer had grown significantly longer and the terms of the deferral more complex. As such, to

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C:\Program Files\eSCRIBE\TEMP\206265433\206265433,,,RATIFICATION AND FURTHER DEFERRAL OF ON OFF SITE PERMIT FEES RELATING TO HILLCREST SUBDIVISION.docx
ensure transparency and to ensure the Council’s approval of the longer deferral period, the City Manager advised the Developer that the further deferral of the Fees set forth in the Amendment would be contingent upon Council ratification.

The Amendment was entered into June 29, 2023, and allows payment of the Fees to be made in two installments, with the first installment of 50% of the Fees ($47,067.50) to be paid on or before July 3, 2023, and the second installment of the remaining Fees ($47,247.50) plus interest to be paid on or before September 1, 2023. Section 3 of the Amendment specifies that further deferral of the Fees is contingent upon Council approval.

On July 3, 2023, the Developer paid to the city the first installment of Fees for $47,067.50.

DISCUSSION:

The City Council is now being asked to consider and discuss the Developer’s request for the further deferral of those Fees remaining ($47,247.50) and the circumstances relating to the Developer’s request to determine if Council is amenable to further deferral of payment of On/Off Site Permit Fees to September 1, 2023.

As provided in the Amendment, if a majority of the Council approves ratification of the further deferral of the Fees then the Developer will pay the remaining amount of $47,247.50 plus interest in the amount of 1,348.14 on or before September 1, 2023.

If the Council denies ratification of further deferral of payment of the Fees, then in accordance with the Amendment, the Fees and interest will be due within two business days after the Council’s decision, and the On/Off Site Permit shall be immediately deemed null and void, until the City receives payment of the Fees and Interest.

In addition, the developer has requested the Council consider deferral of payment in the amount of $38,154.05 for the Clean Up Deposit agreed on the Improvement Agreement entered into by the City and the Developer on December 12, 2022. If the Council is agreeable to such a deferral, then Council can provide direction to the City Manager to enter into an agreement with the Developer (in a form approved by the City Attorney) to defer the clean-up deposit of $38,154.05 to be paid on or before September 1, 2023.

STRATEGIC PLAN:

This project is consistent with the following strategic plan goal:

Efficient & Well Performing Government
Housing
Fiscal Health
FINANCIAL IMPACT:

There are no significant financial impacts associated with this action because the City will not be reducing the amount of On/Off Site Fees owed.

7/13/2023 8:06:04 PM
C:\Program Files\eSCRIBE\TEMP\206265433\206265433,,,RATIFICATION AND FURTHER DEFERRAL OF ON OFF SITE PERMIT FEES RELATING TO HILLCREST SUBDIVISION.docx
ENVIRONMENTAL REVIEW:

The action to approve ratification of the further deferral of the Fees 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.

The Project was analyzed and considered by the Sunshine Vista Environmental Impact Report and its associated Addendums (State Clearinghouse Number: 2017032041).

ALTERNATIVE ACTION:

The City Council could decide to take no action relating to the request for the further deferral of the Fees and provide alternative direction to staff.

ATTACHMENTS AND/OR REFERENCES (If any):
1) Hillcrest Public On-Site Improvement Agrmt – Reso No. 241-22 2) Agrmt for Fee Deferral Hillcrest Estates Subdivision 3) Amendment – Deferral of Payment Permit Fees State 1 Hillcrest Estates

1 Reso No. 241-22 (CM)
Meeting Date: 12/05/22
RESOLUTION NO. 241-22 (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING PUBLIC AND ON-SITE IMPROVEMENT

AGREEMENT WITH DEVELOPER BETWEEN THE CITY OF
WATSONVILLE AND LANDCO HILLCREST, LLC., FOR THE
HILLCREST ESTATES SUBDIVISION, TRACT NO. 1607 LOCATED AT 511 OHLONE PARKWAY (APNS: 018-372-14 AND 018-381-01)

WATSONVILLE, CALIFORNIA, 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. That the Public and On-Site Improvement Agreement with Developer between the City of Watsonville and Landco Hillcrest, LLC., for the Hillcrest Estates Subdivision, Tract No. 1607, located at 511 Ohlone Parkway (APNS: 018-372-14 and 018-381-01), Watsonville, California, and the Fee Sheet, copies of which are attached hereto and incorporated herein by this reference, are fair and equitable subject to the conditions herein

2. Except as provided herein, the Agreement and Fee Sheet are hereby ratified and approved.

3. The City Attorney is directed to review the Agreement and Fee Sheet to verify the Agreement is properly executed and dated by an authorized Landco Hillcrest, LLC representative before releasing the Agreement and Fee Sheet to the City Manager for execution

4. Upon approval by the City Attorney, the City Manager is hereby authorized and directed to execute the Agreement and Fee Sheet for and on behalf of the City of Watsonville.
*******************************
DocuSign Envelope ID: 9D0C6033-8F25-4974-8399-8EEE9EAF24D1 Attachment 1

2 Reso No. 241-22 (CM)
Meeting Date: 12/05/22
The foregoing resolution was introduced at a special meeting of the Council of the City of Watsonville, held on the 5th day of December , 2022, by Member Hurst , who moved its adoption, which motion being duly seconded by Member Quiroz-Carter, was upon roll call carried and the resolution adopted by the following vote:

AYES: COUNCIL MEMBERS: Estrada, Hurst, Montesino, QuirozCarter, Parker NOES: COUNCIL MEMBERS: García
ABSENT: COUNCIL MEMBERS: Dutra
____________________________
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. 241-22 (CM) was duly and regularly passed and adopted by the Watsonville City Council at a meeting thereof held on the 5th day of December , 2022, and that the foregoing is a full, true and correct copy of said Resolution. ________________________________
Irwin I. Ortiz, City Clerk
Date__________________________
DocuSign Envelope ID: 9D0C6033-8F25-4974-8399-8EEE9EAF24D1 12/8/2022 | 1:51 PM PST
12/8/2022 | 1:51 PM PST
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Attachment 1

P:\FORMS\AGREEMENT - ROUTING FORM UPDATED DECEMBER 2020.DOCX

CITY MANAGER /CITY ATTORNEY

SIGNATURE REQUEST ROUTING FORM
Include insurance documents, signed agreements, and all relevant documentation.

All documents must be signed by contractor/lessee and in Munis (if applicable) prior to routing to City Clerk.

Request:
 City Manager Signature  City Attorney Review/Approval  Notarization  Munis Approval NOT REQUIRED  IT Reviewed (if applicable) – THIS CONTRACT INVOLVES TECHNOLOGY, AN EMAIL FROM THE IT DIRECTOR APPROVING THE CONTRACT MUST ACCOMPANY THIS FORM.

All documents routed for signatures must be approved by Department Head.

Department Head Approval: _____________________________________ Date:_____________________ Signature
To be completed by initiating department: (PLEASE COMPLETE ENTIRELY) Staff Responsible:____________________ Department:________________________ Phone Ext: ___________ Contractor/Vendor Name: ______________________________________________________________________ Project Title: ________________________________________________________________________________ Original Contract Amount: $____________________ Changer Order/Amendment No(s) ____________________ Amendment Amount $ _____________________ Cumulative Total $____________________________________ Funding Source (Name of Acct. & Enterprise)______________________________________________________ Budget Account No(s): ________________________________________________________________________ Resolution No. (if any): _____________________ MUNIS Contract No. (if applicable): ______________________  Document is within CM signature authority up to $100,000 (cumulative) for professional services or Public projects meeting the amount set forth in subdivision (b) of California Public Contract Code Section 22032, except as otherwise provided by State legislation, the project shall be let to contract by formal bidding procedure.
 Insurance is up to date and included.
 (For Bids only) DIR Extract Form has been filled and attached (due within 5 days of award of contract by Council or within 5 days from City Manager signature of Quick Bid)  This is a form agreement prepared by City Attorney’s Office. (See http://intranet.ci.watsonville.ca.us/node/303)
 No changes were made; or
 Changes are described AND redlined version is attached.  This is not a form agreement prepared by City Attorney’s Office.

Previously prepared or reviewed by: ___________________________________  $10,000 to $100,000 complete memo stating quotes obtained, include names and amounts, if did not obtain any, explain reasons pursuant to WMC 3-5.530.  Sole Source (attach memo explaining reasons for sole source or list any other exemptions pursuant to (WMC 3-5.210)).

Description of project, scope of work or purchase (must be detailed, incomplete or deficient statements will be sent back):
___________________________________________________________________________________________ ___________________________________________________________________________________________ ___________________________________________________________________________________________  Consultant Required to File FPPC Form 700 (Statement of Economic Interests) Murray Fontes PW&U 3117 Landco Hillcrest, LLC. Public and On-Site Improvement Agreement for Hillcrest Estates Subdivision n/a n/a n/a n/a n/a n/a 241-22 n/a Landco Hillcrest, LLC prepared and submitted a Final Map and Public and On-Site Improvement Agreement for approval for Hillcrest Stage 1 Tract 1607. These documents were approved by Council at their 12/5/22 meeting. Stage 1 develops 30 lots. The Improvement Agreement provides for constructing the City Engineer-approved infrastructure improvements within one year of agreement approval and provides financial guarantees to complete the work.

DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 12/12/2022 | 5:19 PM PST
• • •
Attachment 1

1 Reso No. 241-22 (CM)
Meeting Date: 12/05/22
RESOLUTION NO. 241-22 (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING PUBLIC AND ON-SITE IMPROVEMENT

AGREEMENT WITH DEVELOPER BETWEEN THE CITY OF
WATSONVILLE AND LANDCO HILLCREST, LLC., FOR THE
HILLCREST ESTATES SUBDIVISION, TRACT NO. 1607 LOCATED AT 511 OHLONE PARKWAY (APNS: 018-372-14 AND 018-381-01)

WATSONVILLE, CALIFORNIA, 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. That the Public and On-Site Improvement Agreement with Developer between the City of Watsonville and Landco Hillcrest, LLC., for the Hillcrest Estates Subdivision, Tract No. 1607, located at 511 Ohlone Parkway (APNS: 018-372-14 and 018-381-01), Watsonville, California, and the Fee Sheet, copies of which are attached hereto and incorporated herein by this reference, are fair and equitable subject to the conditions herein

2. Except as provided herein, the Agreement and Fee Sheet are hereby ratified and approved.

3. The City Attorney is directed to review the Agreement and Fee Sheet to verify the Agreement is properly executed and dated by an authorized Landco Hillcrest, LLC representative before releasing the Agreement and Fee Sheet to the City Manager for execution

4. Upon approval by the City Attorney, the City Manager is hereby authorized and directed to execute the Agreement and Fee Sheet for and on behalf of the City of Watsonville.
*******************************
DocuSign Envelope ID: 9D0C6033-8F25-4974-8399-8EEE9EAF24D1 DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 Attachment 1

2 Reso No. 241-22 (CM)
Meeting Date: 12/05/22
The foregoing resolution was introduced at a special meeting of the Council of the City of Watsonville, held on the 5th day of December , 2022, by Member Hurst , who moved its adoption, which motion being duly seconded by Member Quiroz-Carter, was upon roll call carried and the resolution adopted by the following vote:

AYES: COUNCIL MEMBERS: Estrada, Hurst, Montesino, QuirozCarter, Parker NOES: COUNCIL MEMBERS: García
ABSENT: COUNCIL MEMBERS: Dutra
____________________________
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. 241-22 (CM) was duly and regularly passed and adopted by the Watsonville City Council at a meeting thereof held on the 5th day of December , 2022, and that the foregoing is a full, true and correct copy of said Resolution. ________________________________
Irwin I. Ortiz, City Clerk
Date__________________________
DocuSign Envelope ID: 9D0C6033-8F25-4974-8399-8EEE9EAF24D1 12/8/2022 | 1:51 PM PST
12/8/2022 | 1:51 PM PST
DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 ~
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Attachment 1

T:\WPWIN60\PROJECTS\CAL SUNSHINE DEV. WATSONVILLE\Improvement Agreement for PHASE 1-STAGE 1-11.04.22rev per CAOFINAL.DMV.docx

CITY OF WATSONVILLE
IMPROVEMENT AGREEMENT FOR TRACT NUMBER 1607,
HILLCREST, STAGE 1, IMPROVEMENTS

WITH DEVELOPER
THIS IMPROVEMENT AGREEMENT (“Agreement”), is made and entered as of _________________, 2022, by and between the CITY OF WATSONVILLE, a municipal corporation, herein called "City,” and LANDCO HILLCREST, LLC, a California limited liability company, herein called "Developer.”

RECITALS
WHEREAS, Developer has filed with the City certain improvement plans for Stage One of the Hillcrest Subdivision herein called "Project,” which improvement plans are designated “Stage 1 Improvement Plans For Hillcrest 511 Ohlone Parkway Watsonville, California 95076”, APNs 018-372-14 and 018-381-01, prepared by RAMSEY CIVIL ENGINEERING INC, dated May 10, 2022 and revised November 3, 2022 (the “Stage One Improvement Plans”); and WHEREAS, on August 28, 2018, the City Council of the City of Watsonville approved the development of Tract 1607 located in the City of Watsonville, consisting of the construction of 150 dwelling units on individual parcels on a 13± acre site located at 511 Ohlone Parkway, Watsonville, California (APNs 018-372-14 & 018-381-01); WHEREAS, on July 6, 2021, the City Council of the City of Watsonville adopted Resolution No. 210-21 (CM) approving a First Amended Tentative Map for Tract No. 1607, Resolution No. 211-21 (CM) approving a Major Modification to the Special Use Permit with Design Review & Specific Development Plan for Application No. PP2017-116, and Resolution No. 212-21 (CM) approving Addendum No. 2 to the Previously Certified Final EIR (PP2016- 199), (together, “Project Approvals”), reducing the number of dwelling units from 150 to 144, to allow for the construction of Project subject to Developer complying with certain conditions set forth therein; and
WHEREAS, on April 26, 2022, the City Council of the City of Watsonville approved a development agreement to allow for the construction of Project to be completed in 5 phases extending to 2026;
WHEREAS, certain work and improvements required by Title 13 of the Watsonville Municipal Code have not been completed, to wit: the work and improvements required as conditions for approval of this Project, including, street improvements, utilities, and site landscaping improvements (including common use areas and other site features) (the “Stage One Improvements”) all to be built or completed in accordance with Stage One Improvement Plans on file with, and approved by the City Engineer; and
WHEREAS, the approval of the Stage One Improvement Plans and the Project final map are conditioned upon the execution by Developer of this Agreement; and WHEREAS, Developer hereby proposes to enter into this Agreement with City, by the terms of which Agreement Developer agrees to have the Stage One Improvements described above completed on or before ONE (1) year from the date of execution of this Agreement.

Developer may apply to the City Engineer for an extension for reasonable cause.

DocuSign Envelope ID: 00E1CD1F-40F4-4E7D-ADDF-F9883AC6CB4E DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 12/15/2022 | 10:43 AM PST
Attachment 1

T:\WPWIN60\PROJECTS\CAL SUNSHINE DEV. WATSONVILLE\Improvement Agreement for PHASE 1-STAGE 1-11.04.22rev per CAOFINAL.DMV.docx NOW, THEREFORE, in consideration of the premises and the mutual promises and covenants of the parties hereto, it is agreed as follows:

1. CONSTRUCTION OF IMPROVEMENTS. Developer shall do all necessary work and construct the Stage One Improvements, and complete such work and improvements in accordance with the provisions of the conditions of the Project Approvals. All Stage One Improvements shall be completed on or before one year from the date of the execution of this Agreement unless a written extension has been granted by the City.

2. PERFORMANCE OF WORK: PLANS AND SPECIFICATIONS. Developer shall construct, install and furnish at Developer's expense, in a good and workmanlike manner, all Stage One Improvements according to City improvement standards, to fulfill all requirements of Title 13 of the Watsonville Municipal Code, and all requirements of the soils engineer. All such improvements must be completed within one (1) year from the date of this Agreement. Developer shall do all work and furnish all materials necessary to complete the Stage One Improvement Plans and specifications on file as required by City improvements standards and with any changes required or ordered by the City which are necessary or required to complete the work. All work and improvements shall be completed under the direction of and subject to the satisfaction of the City Engineer.

3. EROSION CONTROL. Developer will take all necessary actions during the course of construction to prevent erosion damage to adjacent properties during inclement weather. It is understood and agreed that in the event of failure on the part of Developer to prevent erosion, City may do the work on an emergency basis and back-charge the Developer for the actual expenses incurred, or, if necessary, proceed against the Faithful Performance Security to cover City's expenses.

4. PAYMENT OF DEVELOPMENT FEES AND CHARGES. Bonds, deposits or other financial guarantees listed in Numbers five through seven of this Agreement are required and must be deposited with the City fourteen (14) days prior to the City Council meeting at which this Agreement will be heard.

5. FAITHFUL PERFORMANCE AND LABOR AND MATERIALS SECURITIES. (A) FAITHFUL PERFORMANCE GUARANTEE. Developer shall submit with this Agreement a Faithful Performance Bond issued by a bonding company with a Standard and Poor’s rating of AAA, in the amount of THREE MILLION EIGHT HUNDRED FIFTEEN THOUSAND FOUR HUNDRED FIVE AND 63/100 DOLLARS
($3,815,405.63) which is 100% of the total estimated cost of the Stage One Improvements calculated as follows:

Improvement Cost - $3,815,405.63
Bond Amount – 100% $3,815,405.63
-ANDPage 2 of 19
DocuSign Envelope ID: 00E1CD1F-40F4-4E7D-ADDF-F9883AC6CB4E DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 Attachment 1

T:\WPWIN60\PROJECTS\CAL SUNSHINE DEV. WATSONVILLE\Improvement Agreement for PHASE 1-STAGE 1-11.04.22rev per CAOFINAL.DMV.docx (B) LABOR AND MATERIALS (PAYMENT) GUARANTEE. A Labor and Materials (Payment) Bond issued by a bonding company with a Standard and Poor’s rating of AAA, in the amount of THREE MILLION EIGHT HUNDRED FIFTEEN THOUSAND FOUR HUNDRED FIVE AND 63/100 DOLLARS ($3,815,405.63), which is 100% of the total estimated cost of the Stage One Improvements calculated as follows:

Improvement Cost - $3,815,405.63
Bond Amount – 100% $3,815,405.63
Performance and labor and materials bonds shall be released upon acceptance of such improvements by City Council.

6. DEFECTIVE MATERIALS AND WORKMANSHIP (WARRANTY) BOND.

Developer shall submit with this Agreement a bond issued by a bonding company with a Standard and Poor’s rating of AAA, in the amount of THREE HUNDRED EIGHTY ONE THOUSAND FIVE HUNDRED FORTY AND 56/100 DOLLARS ($381,540.56) which is ten percent (10%) of the contract amount to secure the improvements for a period of one (1) year following completion and acceptance by the City Council against any defective work or labor done, or materials furnished.

Improvement Cost - $3,815,405.63
Fund Amount - 10% $ 381,540.56
NO OTHER IMPROVEMENT SECURITY SHALL BE ACCEPTABLE. The security shall provide that within a period of one (1) year after final acceptance of the work performed under this Agreement any structure or part of any structure furnished and/or installed or constructed, or caused to be installed or constructed by Developer, or any of the work done under this Agreement fails to fulfill any of the requirements of the specifications referred to herein, Developer shall without delay and without any cost to City, repair or replace or reconstruct any defective or otherwise unsatisfactory part or parts of the work or structure. The city is hereby authorized to make such repairs if within ten (10) days after the mailing of notice in writing to Developer or its agent, Developer shall neglect to make or undertake with due diligence the aforesaid repairs, replacements or reconstruction; provided, however, that in case of an emergency where in the opinion of the City delay would cause serious loss or damage, repairs may be made without notice being sent to Developer and Developer shall pay the costs thereof.

7. MONUMENT DEPOSIT. Developer shall provide a bond issued by a bonding company with a Standard and Poor’s rating of AAA to guarantee completion of subdivision survey and monumentation of the lot and boundaries in the amount of SIXTEEN THOUSAND AND 00/100 DOLLARS ($16,000) which is ONE HUNDRED PERCENT (100%) of the developers engineering and land surveyor’s contract amount to secure performance, or a letter from Developer’s engineer or land surveyor confirming that the land surveyor has been paid for setting all required monuments for the subdivision and will establish all monumentation as required upon request from the Developer or the city.

Land surveyors estimate: $16,000
Bond amount: $16,000

DocuSign Envelope ID: 00E1CD1F-40F4-4E7D-ADDF-F9883AC6CB4E DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 Attachment 1

T:\WPWIN60\PROJECTS\CAL SUNSHINE DEV. WATSONVILLE\Improvement Agreement for PHASE 1-STAGE 1-11.04.22rev per CAOFINAL.DMV.docx NO OTHER IMPROVEMENT SECURITY SHALL BE ACCEPTABLE. Monuments shall be set in place and be of such kind and quality as may be required by the City Engineer. Refund of all or part of the deposit shall be conditioned upon satisfactory compliance with City requirements which includes receipt by the City of a letter from the Developer’s engineer and or land surveyor confirming the monuments have been placed and the engineer or land surveyor has been paid for setting of the monuments.

8. CLEAN UP DEPOSIT (FUND TO CLEAR PUBLIC STREETS). Developer shall deposit in the amount of THIRTY EIGHT THOUSAND ONE HUNDRED FIFTY FOUR AND 05/100 Dollars ($38,154.05) to the City, which is one percent (1%) of the contract amount to secure clean-up work. No other form of security will be accepted for this deposit.

Improvement Cost - $ 3,815,405.63
Deposit amount - 1% $ 38,154.05
NO OTHER IMPROVEMENT SECURITY SHALL BE ACCEPTABLE. The security shall provide that it shall be the duty of the Developer, or its contractors and agents, to maintain all public streets in and about the Project free and clear of all debris, dirt, mud or other construction material during the course of construction. The existence of any such debris, dirt, mud or other construction material is hereby declared and acknowledged to be a public nuisance. The city is hereby authorized to use such cash sums if within three (3) days after the mailing of notice in writing to Developer or its contractors or agents, the Developer or its contractors or agents fail to clear or remove such debris, dirt or other construction material from the public streets as directed by the City Engineer; provided, however, that in case of an emergency where, in the opinion of City, delay may cause serious injury to the public interest, City may clear and remove such material without notice to Developer, utilizing the funds described herein. The remaining deposit as herein provided shall be refunded to Developer upon acceptance of the improvements by the City Council.

9. HOLD HARMLESS. Developer shall defend, indemnify and hold City, its elective and appointive boards, commissions, officers, agents and employees, harmless from any liability or damage or claims for damage for personal injury, including death, as well as from claims for property damage which may arise from Developer or Developer's contractors, subcontractors, agents or employees' operations under this Agreement, whether such operations are by Developer of by any of Developer's contractors, or by any one or more persons directly or indirectly employed by or acting as agent for Developer or any of Developer's contractors or subcontractors. Developer shall defend City and its elective and appointive boards, commissions, officers, agents and employees from any suits or actions at law or in equity for damages caused, or alleged to have been caused, by reason of any of the aforesaid operations; provided as follows:
(A) That City does not and shall not waive any rights against Developer which it may have by reason of the hold harmless agreement, because of the acceptance by City or the deposit with City by Developer, or any of the insurance policies described herein.
(B) That the hold harmless agreement by Developer shall apply to all damages of every kind suffered, or alleged to have been suffered, by reason of any of the aforesaid operations referred to in Number 9 of this Agreement, regardless of whether or not the City has prepared, supplied or approved plans and/or specifications for the project, or regardless of

DocuSign Envelope ID: 00E1CD1F-40F4-4E7D-ADDF-F9883AC6CB4E DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 Attachment 1

T:\WPWIN60\PROJECTS\CAL SUNSHINE DEV. WATSONVILLE\Improvement Agreement for PHASE 1-STAGE 1-11.04.22rev per CAOFINAL.DMV.docx whether or not such insurance policies shall have been determined to be applicable to any such damages or claims for damage.

10. INSURANCE. Prior to issuance of an On/Off Site Permit for the work described within this Improvement Agreement, Developer and any contractor doing work shall provide Certificates of Insurance and Endorsements as satisfactory evidence of the insurance required, and evidence that each carrier is required to give City at least thirty (30) days prior notice of cancellation or reduction in coverage of any policy during the effective period of this Agreement, and any extension thereto. All insurance certificates are to be originals, showing policy numbers, expiration dates, and local underwriters' name and address. No binders, riders, or carbon copies will be accepted.

REDUCED, CANCELED, OR EXPIRED INSURANCE. Polices reduced, canceled or expired without written approval of City shall be immediately reinstated in the amounts required, by this Agreement as of the date of reduction or cancellation. Failure to comply with this requirement may result in the termination by the City of all work on the Project. All policies shall remain in force for sixty (60) days after the City accepts the project as complete. Developer and any contractor shall not perform work under this Agreement unless they have provided all insurance required under this paragraph in satisfactory form, nor shall they allow any contractor or subcontractors unless all insurance required of the contractor or subcontractor to perform work on contracts is in full force and effect.

INSURANCE REQUIREMENTS.
(A) PUBLIC LIABILITY & PROPERTY DAMAGE INSURANCE. Developer and any contractor shall take out and maintain during the life of this Agreement such Public Liability and Property Damage Insurance, by an insurer acceptable to the City, that shall name and insure City, its elective and appointive boards, commissions, officers, agents and employees, Developer and any contractor or subcontractor performing work covered by this Agreement from claims for damage for personal injury, including death, as well as from claims for property damage which may arise from Developer's or any contractors' or subcontractors' operations hereunder, whether such operations are by Developer or any contractor or subcontractor, and the amounts of such insurance shall be as follows:
(A.1.) COMMERCIAL GENERAL LIABILITY INSURANCE. Developer and any contractor shall provide bodily injury liability limits of not less than Five Hundred Thousand and no/100 Dollars ($500,000.00) for each person and Five Hundred Thousand and no/100 Dollars ($500,000.00) for each accident or occurrence, and property damage liability limits of not less than Five Hundred Thousand and no/100 Dollars ($500,000.00) for claims which may arise from the operations of the Developer in the performance of the work hereunder provided, OR combined single limits of Five Hundred Thousand and no/100 Dollars ($500,000.00) therefore. This insurance must include coverage for contractual liability assumed by the Developer pursuant to Section 9 of this Agreement.

Said policy shall contain a standard form of cross liability endorsement policy, that insures the City, its elective and appointive boards, commissions, officers, agents and employees, Developer, and any contractor or subcontractor performing work covered by this Agreement.

DocuSign Envelope ID: 00E1CD1F-40F4-4E7D-ADDF-F9883AC6CB4E DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 Attachment 1

T:\WPWIN60\PROJECTS\CAL SUNSHINE DEV. WATSONVILLE\Improvement Agreement for PHASE 1-STAGE 1-11.04.22rev per CAOFINAL.DMV.docx (A.2.) AUTOMOBILE LIABILITY INSURANCE. For all vehicles used in the performance of this Agreement, Developer and any contractor shall provide bodily injury liability limits of not less than Five Hundred Thousand and no/100 Dollars ($500,000.00) for each person and Five Hundred Thousand and no/100 Dollars ($500,000.00) for each accident or occurrence, and property damage liability limits of not less than Five Hundred Thousand and no/100 Dollars ($500,000.00) for each accident or occurrence which may arise from the operations of the Developer in performing the work provided for herein, OR combined single limits of Five Hundred Thousand and no/100 Dollars ($500,000.00) therefore. Said policy shall contain a standard form of cross liability endorsement policy, that insures the City, its elective and appointive boards, commissions, officers, agents and employees, Developer, and any contractor or subcontractor performing work covered by this Agreement.
(B) WORKER'S COMPENSATION INSURANCE. Developer and any contractor shall maintain Worker's Compensation Insurance during the life of this Agreement, with an insurance company licensed to provide such insurance in California for all employees employed by either at the site of improvement, and in case any work is sublet, they shall require any contractor or subcontractor similarly to provide Worker's Compensation Insurance for all contractors' or subcontractors' employees. In case any class of employees engaged in work under this Agreement at the site of the project is not protected under any Worker's Compensation Law, Developer and any contractor shall provide and shall cause each subcontractor to provide adequate insurance for the protection of employees not otherwise protected. Developer and any contractor hereby indemnify City for any damages resulting to it from failure of either Developer or any contractor or subcontractor to take out or maintain such insurance.

11. BOND REQUIREMENTS. Developer shall submit bonds with this Agreement as satisfactory evidence of the bonds required, and evidence that each carrier is required to give City at least thirty (30) days prior notice of cancellation or reduction in coverage of any bond during the effective period of this Agreement, and any extension thereto. All bonds are to be originals, showing policy numbers, expiration dates, and local underwriter's name and address. No binders, riders, or carbon copies will be accepted.

12. WORK HOURS. Working hours will only be between 7:00 a.m. and 7:00 p.m. Monday through Friday. The Developer shall submit a written request to the City Engineer, in advance, for authorization to work on weekends and/or holidays. The cost of the inspector's overtime salary plus twenty (20) percent shall be paid for by the Developer, prior to acceptance of the Project.

13. DUST CONTROL. Contractor shall control the dust resulting from the construction of this Project regardless of whether it is the result of contractor’s operation or caused by public traffic only.

14. VIDEO INSPECTION OF STORM DRAINS. Upon completion of storm drains and written notification by the City Engineer, the Developer shall deliver to the City a video recording of all the storm drains to the City’s satisfaction and provide a DVD disk to the City. This cost shall be borne by Developer.

DocuSign Envelope ID: 00E1CD1F-40F4-4E7D-ADDF-F9883AC6CB4E DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 Attachment 1

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15. AS-BUILT PLANS. The applicant’s contractor shall maintain one set of full size, approved plans and mark thereon any deviations from plan dimensions, elevations or orientations.

Marked plans shall be updated weekly and shall be available to the City for review when requested.

Revisions to the plans shall be done in black ink. They shall be clouded and a delta or a note placed next to the clouding that indicates that the change was done as the plans were being “asbuilt.” As-built plans shall be maintained for all approved improvement plans, including but not limited to, grading, retaining wall, drainage, utility, roadway, landscape and irrigation plans.

Any differences in elevations of gravity pipe inverts at manholes, inlets, drainage swales and detention facilities from the elevations shown on the plans shall be recorded on the as-built plans.

Upon completion of the landscape and irrigation improvements that shall be owned and maintained by the City, the applicant’s landscape and irrigation contractors shall meet with City staff to develop accurate as-built plans.

Prior to final acceptance of the project by the City, the applicant shall provide the City with a copy of the marked plans for review. After the City has approved the marked plans, the applicant shall submit a reproducible copy to the City. The plans shall be on vellum or mylar and each sheet shall be identified by an “as-built” or “record drawing” stamp.

15.1. COMPLIANCE WITH LAWS AND REGULATIONS. Developer shall obey all laws in performing its obligations under this Agreement. (A) In the design and construction of all improvements set forth in the Improvement plans, the Developer shall comply fully with all applicable disabled-accessibility laws, regulations, and guidelines under local, state, and federal law, including but not limited to, regulations and guidelines promulgated under the Americans with Disabilities Act (“ADA”), Federal Fair Housing Act and California Building Standards Disability Access Guidelines (Title 24 of the California Code of Regulations). Where an apparent conflict exists between applicable regulations, guidelines, and/or portions of this Agreement, the more restrictive requirement shall control so as to provide better access.
(B) Developer shall defend, indemnify and hold the City of Watsonville harmless for all claims, damages, or injuries asserted against the City of Watsonville, its elected officials, employees, and agents related to any assertions related to whether this project fails to comply with any such law.

16. LOCATION OF STORAGE AND CONSTRUCTION YARD. Developer shall locate any construction yard for the storage of equipment, vehicles, supplies, and materials, or the preparation or fabrication thereof, to be used in connection with the installation of improvements for the Project or the construction of buildings therein, in such manner so as to cause a minimum of inconvenience to persons living in the area immediately adjacent to the Project, and to obtain the approval of the City Engineer to the proposed location of the yard. Immediately upon completion of the final building to be constructed in the Project, or unit thereof to which this Agreement refers, Developer shall cease using the construction yard and shall remove there from all supplies, materials, equipment or vehicles being stored or kept thereon; Developer further shall not use the construction yard for construction of buildings in any other project or unit of a project to which this Agreement refers. The city may extend the time within which supplies, materials, equipment or vehicles may be stored or kept therein if City shall determine that the granting of such extension will not be detrimental to the public welfare. No extension will be made except on

DocuSign Envelope ID: 00E1CD1F-40F4-4E7D-ADDF-F9883AC6CB4E DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 Attachment 1

T:\WPWIN60\PROJECTS\CAL SUNSHINE DEV. WATSONVILLE\Improvement Agreement for PHASE 1-STAGE 1-11.04.22rev per CAOFINAL.DMV.docx the basis of a written application made by Developer, stating fully the grounds and facts relied upon for such extension. No storage of materials shall be permitted on any public right of way.

17. INCORPORATION OF USE PERMIT AND TENTATIVE MAP PERMIT CONDITIONS. Pursuant to the provisions of Resolution No. 211-21 (CM) approving the Major Modification to the Special Use Permit with Design Review & Specific Development Plan, and Resolution No. 210-21 approving a First Amended Tentative Map, the Developer affirms that the conditions and restrictions set forth in said resolutions shall be applicable to this Agreement and by such reference the conditions and restrictions are incorporated herein, and shall be placed on the plans submitted for all building permit applications.

18. PERFORMANCE BY CITY. It is understood that should Developer fail to construct any or all of the improvements as herein provided, the City may construct or cause to construct such improvements not completed under this Agreement. The City may draw against any of the securities mentioned herein for payment of any labor and/or materials expended to fulfill this Agreement.

19. PERMITS; COMPLIANCE WITH LAW. Developer shall, at Developer's expense, obtain all necessary permits and licenses for the construction of such improvements, give all necessary notices, and pay all fees and taxes required by law. (A) After City Council approval of this Improvement Agreement and prior to starting construction, Developer’s contractor shall obtain an On/Offsite Permit for the proposed improvements. Contractor shall provide an insurance certificate meeting the requirements of the insurance coverages described in this Agreement.

20. PRECONSTRUCTION MEETING. Prior to starting construction of the improvements described in this Agreement, Developer shall hold a preconstruction meeting at the Community Development Department. Developer shall schedule the meeting. Participants shall include the Developer, the Owner, the General Contractor, the Project Engineer, the Soils Engineer and representatives of any Testing Agencies involved with the project.

21. INSPECTION BY CITY. Developer shall at all times maintain proper facilities and provide safe access for inspection by City, to all parts of the work and to shops wherein the work is in preparation. All improvements are subject to inspection by City, and provisions shall be made therefore for a period of twelve (12) months after acceptance by City.

22. DEVELOPER NOT AGENT OF CITY. Neither Developer nor any of Developer's agents or contractors are or shall be considered to be agents of City in connection with the performance of Developer's obligation under this Agreement.

23. NOTICE OF BREACH AND DEFAULT. If Developer refuses or fails to obtain prosecution of the work, or any severable part thereof, with such diligence as will insure its completion within the time specified, or any extensions thereof, or fails to obtain completion of the work within such time, or if the Developer should be adjudged as bankrupt, or Developer shall make a general assignment for the benefit of Developer's creditors, or if a receiver should be appointed in the event of Developer's insolvency or if Developer or any of Developer's contractors, subcontractors, agents or employees should violate any of the provisions of this Agreement, Public Works and Utilities Director, City Engineer or the City Council may serve written notice upon

DocuSign Envelope ID: 00E1CD1F-40F4-4E7D-ADDF-F9883AC6CB4E DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 Attachment 1

T:\WPWIN60\PROJECTS\CAL SUNSHINE DEV. WATSONVILLE\Improvement Agreement for PHASE 1-STAGE 1-11.04.22rev per CAOFINAL.DMV.docx Developer and Developer's surety of breach of this Agreement of any portion thereof, and default of Developer.

24. BREACH OF AGREEMENT: PERFORMANCE BY SURETY OR CITY. In the event of any such notice, Developer's performance surety shall have the duty to take over and complete the work in the improvement herein specified; provided, however, that if the surety, within five (5) days of the serving upon it of such notice of breach, does not give City written notice of its intention to take over the performance of the contract, and does not commence performance thereof within (5) days after notice to City of such elections, City may take over the work and prosecute the same to completion, by contract or by any other method the City may deem necessary, for the account and at the expense of Developer, and Developer's surety shall be liable to City for any excess cost of damages occasioned City thereby; in such events City, without liability for so doing may take possession of and utilize in completing the work such materials, appliances, plants and other property belonging to the Developer as may be on the site of the work necessary therefore.

25. BREACH OF AGREEMENT: LEGAL EXPENSES TO CITY. In the event a court action or arbitration is filed to enforce the terms of this Agreement, or to obtain relief by way of damages arising from default in the performance thereof, the prevailing party shall be awarded reasonable attorneys' fees and the cost of expert witnesses' as additional damages.

26. BINDING ON SUCCESSORS AND ASSIGNS. This Agreement shall run with the land and be binding upon the successors and assignees of each of the parties. Developer shall inform potential buyers of the obligations on successors and assignees created by this paragraph.

Developer shall provide copies of this executed Agreement to those potential buyers. Developer is advised that the sale of all or part of the lands of the underlying Project does not automatically transfer from the Developer of the land the security obligations of this Agreement. Those security obligations attach to Developer until all obligations of Developer under this Agreement are fulfilled or transferred by substitution of a replacement agreement and replacement securities acceptable to the City.

27. NOTICES. All notices herein required shall be in writing and delivered in person or sent by registered mail, postage prepaid. Notices required to be given to City shall be addressed as follows:

City Clerk
City of Watsonville
275 Main Street, 4th floor
Watsonville, CA 95076
Notices required to be given to the Developer shall be addressed as follows:

LANDCO HILLCREST, LLC
Twenty Park Road
Burlingame, California 94010
Attn: Mark Lester

DocuSign Envelope ID: 00E1CD1F-40F4-4E7D-ADDF-F9883AC6CB4E DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 Attachment 1

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28. WAIVERS. Any waiver by City or Developer of any breach of any provision of this Agreement shall not be construed to be a waiver of any subsequent or other breach of the same or any other provision hereof. Failure on the part of City or Developer to require exact, full and complete compliance with any of the provisions of this Agreement shall not be construed as in any manner changing the terms hereof or estopping City or Developer from enforcing this Agreement.

29. SEVERABILITY. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.

30. JURISDICTION AND VENUE. This Agreement is to be construed in accordance with the laws of the State of California. Any action at law or in equity brought by any of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in Santa Cruz County, State of California, and the parties hereto waive all provisions of law providing for a change of venue in such proceedings to any other county.

31. NO THIRD PARTY BENEFICIARIES. This Agreement is made and entered into for the sole protection and benefit of the parties hereto. No other person or entity shall have any right of action based upon the provisions of this Agreement. Nothing in the provisions of this Agreement is intended to create duties or obligations to or rights in third parties not parties to this Agreement

32. FINAL EXPRESSION. This Agreement is the result of negotiations between the parties hereto and the advice and assistance of their respective counsel. This Agreement is intended by the parties hereto as a final expression of their understanding with respect to the subject matter hereof and as a complete and exclusive statement of the terms and conditions thereof and supersedes any and all prior and contemporaneous agreements and understandings, oral or written, in connection therewith. This Agreement may be amended or modified only upon the written consent of the parties hereto.

33. WRITING. No alternation or variation of the terms of this Agreement shall be valid unless made in writing and signed by both parties and no oral understanding or agreement not incorporated herein shall be binding on either party hereto.

34. COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.

35. ATTACHMENTS HERETO. The following checked items are either attached hereto or made a part hereof by reference:

X List of Development Fees and Charges (Attachment A)
_X_ Engineer’s Estimate (Attachment B)
Please note: Certificate of Insurance and Insurance Endorsements (Shall be provided per “Section 10. Insurance” of this Improvement Agreement.) SIGNATURES FOLLOW ON PAGE 11

DocuSign Envelope ID: 00E1CD1F-40F4-4E7D-ADDF-F9883AC6CB4E DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 Attachment 1

T:\WPWIN60\PROJECTS\CAL SUNSHINE DEV. WATSONVILLE\Improvement Agreement for PHASE 1-STAGE 1-11.04.22rev per CAOFINAL.DMV.docx IN WITNESS WHEREOF, the parties have hereto executed this Public Improvement Agreement on the day and year first herein above written:

ATTEST: CITY OF WATSONVILLE
A Municipal Corporation
_________________________ _________________________
City Clerk City Manager
APPROVED AS TO FORM: DEVELOPER
_________________________

LANDCO HILLCREST, LLC
City Attorney a California limited liability company
By: _________________________
_________________________
Its: _________________________

DocuSign Envelope ID: 00E1CD1F-40F4-4E7D-ADDF-F9883AC6CB4E Managing Member, LANDCO Hillcrest GP, LLC
DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 GDocuSigned by:

VWilA, {9-rii") 95926F9A882E4FA .. .
r-:DocuSigned by:
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Attachment 1

T:\WPWIN60\PROJECTS\CAL SUNSHINE DEV. WATSONVILLE\Improvement Agreement for PHASE 1-STAGE 1-11.04.22rev per CAOFINAL.DMV.docx City of Watsonville – 275 Main Street, 4th Floor – Watsonville CA 95076 FEE SHEET – IMPROVEMENT AGREEMENT – ATTACHMENT A
Developer’s name: LANDCO Hillcrest, LLC
Address: Twenty Park Road
Burlingame, CA 94010
Project Location: 511 Ohlone Parkway
Watsonville CA 95076
Project Name: Hillcrest Stage No. 1

FEE SCHEDULE
The following estimated costs and fees for the above
project are subject to plans reviewed or discussed.

Estimated costs cannot be construed as binding on the
City. Any change in plans will effect these costs and
fees. Please verify estimated costs at the time you are ready for Agreement acceptance. The City Revenue
Account is in parenthesis.

A. Engineering Services (5203) = $ 64,313.00
B. Inspection (5206) $ 29,225.00
C. Permit Fees (5211) $ 777.00
D. Soil Testing $ --
E. Grading/Erosion Control $ --
F. Payback Agreements --
Sub Total Fees (A-F) $ 94,315.00
G. Impact Fees* $574,048.79
H. Water Fees & charges* $107,578.36
Sub Total (Fees G & H*) $681,627.15
TOTAL FEES $775,942.15
Please make check payable to City of Watsonville.

Property Owner: LANDCO HILLCREST, LLC
Address: Twenty Park Road
Burlingame, California 94010
Phone #: (650) 638-0900
APN: 018-372-14 & 018-381-01
Type of Project: Stage 1 Improvements for a
Residential Subdivision
Number of Units: 27 Lots

CHECKLIST OF ITEMS REQUIRED
√ Two signed copies of Agreement
□ Improvement plan originals
√ Four sets of improvement plans
√ Final Map original
√ Final Map reduced to 8-1/2” x 11”
□ Street grant deeds
□ Easement deeds
√ Faithful Performance bond
√ Labor & Material bond
√ Defective Materials & Workmanship
(Warranty) bond
√ Monument deposit
√ Clean-up deposit
√ Certificate of Insurance
√ Insurance Endorsements
Note: All bonds and certificates to be originals,
showing policy numbers, expiration dates, and local
underwriter’s name and address. No binders, riders,
or carbon copies will be accepted.
*Note: Impact Fees and Water Fees and Charges
shall be payable with building permits.

ALL CERTIFICATES OF INSURANCE TO
HAVE A 30-DAY NOTICE OF
CANCELLATION.

Prepared by: David Caneer
Updated: 11/15/22
Attachment A

DocuSign Envelope ID: 00E1CD1F-40F4-4E7D-ADDF-F9883AC6CB4E DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 Attachment 1

T:\WPWIN60\PROJECTS\CAL SUNSHINE DEV. WATSONVILLE\Improvement Agreement for PHASE 1-STAGE 1-11.04.22rev per CAOFINAL.DMV.docx Project Name: Hillcrest Stage No. 1
Item Amount Due
A. Engineering Services
(Plan Check) $ 64,313.00
Improvement plan & CC&R’s
check = $ 41,471.00
Drainage Study review = $ 1,050.00
MWELO review = $ 140.00
Structural review = $ 1,150.00
Addressing fee = $ 350.00
Final Map review fees = $ 3,110.00
Final Map recordation = $ 356.00
Subdivision Agreement
Preparation = $ 10,461.00
Map Processing = $ 6,225.00
B. Inspection
Inspection fee (5206) = $ 29,225.00
C. Encroachment Permit Fees $ 777.00
D. Soils Testing $ (1)
E. Grading/Erosion Control $ (2)
F. Payback Agreements None
G. Impact Fees* $574,048.79
Impervious surface = $ 41,350.00
Storm drain (5365) = $ 18,923.01
Underground in lieu fee (5284)= $ N/A
City Wide Traffic Impact Fee (5360) =
$ 59,130.00
Community Centers and Recreation
Facilities Impact Fees = $ 15,795.00
Park Improvement Impact Fee = $114,831.00
Park Land Impact Fee = $ 94,554.00
Item Amount Due
Public Facilities Impact Fee (5362) = $ 24,181.60
Fire Impact Fee (5361) = $ 29,430.00
Watsonville Public Art Program
Allocation Fee = $ 75,000.00
Affordable Housing Impact Fee (5304) =
$ N/A
Sewer Connection Fee (5364) = $ 59,681.07
Groundwater Impact Fee (5312) = $ 41,173.11
H. Water Fees & Charges* $107,578.36
Water Connection (5313) $ 79,978.36
Meter Fees (5266) $ 27,600.00
Total due $775,942.15
Previously paid $ --
Balance due $775,942.15
*NOTE: Impact fees for Affordable Housing, Fire,
Groundwater, Recreation and Parks, Traffic and
Public Facilities shall be payable with building
permits. Sewer and water connection and water
construction fees shall be payable with building
permits.
(1) Soil testing paid by applicant per the Engineer
Special Inspection and Testing Agreement.
(2) Included with Engineering Services.

Attachment A

DocuSign Envelope ID: 00E1CD1F-40F4-4E7D-ADDF-F9883AC6CB4E DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 Attachment 1

T:\WPWIN60\PROJECTS\CAL SUNSHINE DEV. WATSONVILLE\Improvement Agreement for PHASE 1-STAGE 1-11.04.22rev per CAOFINAL.DMV.docx Attachment B - Engineer’s Estimate

DocuSign Envelope ID: 00E1CD1F-40F4-4E7D-ADDF-F9883AC6CB4E DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 Attachment 1

Ramsey CIvil Engineering Inc.
2905 Kristie Court
Santa Cruz, California 95065
831-462-2905
Job Number: 20-021 Estimate Date: 4-Nov-22
Job Name: Hillcrest Subdivision - Stage 1 By: DMR
***SITE PREPARATION & GRADING*** Quantity Unit Cost Item Total Contingency Contractor Mobilization
Mobilization (Included in offsite) 1 LS 15,000.00 $ 15,000.00 $ √ Temproary Facilities & Utilities (Included in offsite) 1 LS 7,500.00 $ 7,500.00 $ √ Traffic Control (Included in offsite) 1 LS 15,000.00 $ 15,000.00 $ √ Contractor Mobilization Subtotal 37,500.00 $
Demolition/Removal (inlcuded in offsite)
Pavement -Asphalt, 3" (inc. Sawcut) 250 SF 5.00 $ 1,250.00 $ √ Curb & Gutter 58 LF 10.00 $ 580.00 $ √
Concrete (Driveway & Sidewalk) 0 SF 5.00 $ - $ √
Temporary Erosion Control (included in remediation) 1 LS 5,000.00 $ 5,000.00 $ √ Fence 100 LF 3.00 $ 300.00 $ √
Sound Wall 65 LF 5.00 $ 325.00 $ √
Concrete V-Ditch 64 LF 8.00 $ 512.00 $ √
Retaining Wall 0 LF 5.00 $ - $ √
Demolition/Removal Subtotal 7,967.00 $
Grading
Grading- included im rough grading & Remediation 0 CY 25.00 $ - $ √ Rough Grading Subtotal - $
SITE PREPARATION & GRADING Subtotal : 45,467.00 $
Contingencies:

SITE PREPARATION & GRADING Total : 45,467.00 $
***SANITARY SEWERS*** Quantity Unit Cost Item Total Contingency Laterals
6" SDR-26 PVC 0 LF 80.00 - $ √
Mains Subtotal - $
Miscellaneous
Cleanouts 0 EA 500.00 - $ √
Mains Subtotal - $
SANITARY SEWERS Subtotal : - $
Contingencies: - $
SANITARY SEWERS Total : - $
***WATER DISTRIBUTION*** Quantity Unit Cost Item Total Contingency Miscellaneous
Meter Box 0 EA 250.00 $ - $ √
Water Service 8" C900 Main 185 LF 45.00 $ 8,325.00 $ √
Miscellaneous Subtotal 8,325.00 $
Special Assemblies
Hot Tap Conneciton 1 EA 5,000.00 $ 5,000.00 $ √
Gate Valve 3 EA 1,000.00 $ 3,000.00 $ √
Special Assemblies Subtotal 8,000.00 $
WATER DISTRIBUTION Subtotal : 16,325.00 $
Contingencies: - $
WATER DISTRIBUTION Total : 16,325.00 $
****Opinion of Probable Cost****
Off-Site
RamCE #20-021

Attachment B
DocuSign Envelope ID: 00E1CD1F-40F4-4E7D-ADDF-F9883AC6CB4E DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 Attachment 1

Opinion of Probable Cost
For Hillcrest Subdivision - Phase 1
***STORM DRAINAGE*** Quantity Unit Cost Item Total Contingency Main Lines and Structures
12" RCP 55 LF 150.00 $ 8,250.00 $ √
Stanard Manholes 1 EA 5,000.00 $ 5,000.00 $ √
4x4 Filterra Unit (curb inlet) 2 EA 12,000.00 $ 24,000.00 $ √ Junction Box 1 EA 3,000.00 $ 3,000.00 $ √
Main Lines Subtotal 40,250.00 $
STORM DRAINAGE Subtotal : 40,250.00 $
Contingencies: - $
STORM DRAINAGE Total : 40,250.00 $
***UTILITY RELOCATIONS*** Quantity Unit Cost Item Total Contingency Underground Electric & Traffic
Joint Trench (Ohlone and Loma Vista) 765 LF 150.00 $ 114,750.00 $ √ Electric and Gas Connections 1 LS 10,000.00 $ 10,000.00 $ √ Subtotal 124,750.00 $
UTILITY RELOCATION Subtotal: 124,750.00 $
Contingencies: - $
UTILITY RELOCATION Total: 124,750.00 $
***ROADWAY/SITE IMPROVEMENTS*** Quantity Unit Cost Item Total Contingency Pavements/ Site Improvements
6" PCC Curb and Gutter 345 LF 100.00 $ 34,500.00 $ √
Curb Ramp 1 EA 4,500.00 $ 4,500.00 $ √
PCC Sidewalk 800 SF 30.00 $ 24,000.00 $ √
Asphalt (5"AC) 7,697 SF 12.00 $ 92,364.00 $ √
12" Class II AB @ 95% R.C. 285 CY 40.00 $ 11,400.00 $ √ Retaining Wall "B" 148 LF 400.00 $ 59,200.00 $
New & Replace/relocate impacted signage and striping 1 LS 7,500.00 $ 7,500.00 $ √ Pavements Subtotal 233,464.00 $
ROADWAY/STREET IMPROVEMENTS Subtotal: 233,464.00 $
Contingencies: - $
ROADWAY/STREET IMPROVEMENTS Total: 233,464.00 $
***MAJOR CATEGORY TOTALS (Does not include Contingency Costs )*** Site Preparation and Grading $ 45,467.00
Sanitary Sewers $ -
Water Distribution $ 16,325.00
Storm Drainage $ 40,250.00
Electrical $ 124,750.00
Roadway/Street Improvements $ 233,464.00
TOTAL COST WITHOUT CONTINGENCIES 460,256.00 $
***SUMMARY (Including Contingency Costs) ***
TOTAL COST SUBJECT TO CONTINGENCY 460,256.00 $
OVERHEAD: 5% 23,012.80 $
PROFIT: 5% 23,012.80 $
CONTINGENCIES: 15% 69,038.40 $
TOTAL ESTIMATED CONSTRUCTION COST: 575,320.00 $
NOTES
Since Ramsey Civil Engineering, Inc., has no control over the cost of labor, materials, or equipment, or over the contractor's methods of determining prices, or over competitive bidding or market conditions, our opinions of probable project cost or construction cost provided herein are to be made on the basis of our experience and qualifications and represent our best judgment as design professionals familiar with the construction industry, but Ramsey Civil Engineering, Inc., cannot and does not guarantee that proposals, bids, or the construction cost will not vary from opinions of probable cost prepared by the firm
RamCE #20-021

Attachment B
DocuSign Envelope ID: 00E1CD1F-40F4-4E7D-ADDF-F9883AC6CB4E DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 Attachment 1

Ramsey CIvil Engineering Inc.
2905 Kristie Court
Santa Cruz, California 95065
831-462-2905
Job Number: 20-021 Estimate Date: 4-Nov-22
Job Name: Hillcrest Subdivision- Stage 1 By: DMR
***SITE PREPARATION & GRADING*** Quantity Unit Cost Item Total Contingency Contractor Mobilization
Mobilization (Included in offsite) 0 LS 10,000.00 $ - $ √ Temproary Facilities & Utilities (Included in offsite) 0 LS 7,500.00 $ - $ √ Traffic Control (Included in offsite) 0 LS 10,000.00 $ - $ √ Contractor Mobilization Subtotal - $
Grading (R&RG = Remediation & Rough Grading)
Strippings (Completed as part of R&RG Plan) 0 CY 24.00 $ - $ √ Mass Grading (Completed as part of R&RG Plan) 0 CY 25.00 $ - $ √ Erosion Prevention & Sediment Control 1 LS 20,000.00 $ 20,000.00 $ √ Fine Grading 1 LS 20,000.00 $ 20,000.00 $ √
Re-grade Existing Basin 2 EA 6,000.00 $ 12,000.00 $ √
Rough Grading Subtotal 52,000.00 $
SITE PREPARATION & GRADING Subtotal : 52,000.00 $
Contingencies: --
SITE PREPARATION & GRADING Total : 52,000.00 $
***SANITARY SEWERS*** Quantity Unit Cost Item Total Contingency Pipes
8" SDR-26 PVC Sewer Main 1700 LF 100.00 170,000.00 $ √
4" SDR-26 PVC 1240 LF 60.00 74,400.00 $ √
Mains Subtotal 244,400.00 $
Miscellaneous
Manholes (Standard) w/ frame and cover 6 EA 5,000.00 30,000.00 $ √ Manholes (Deep (+12')) w/ frame and cover 6 EA 8,000.00 48,000.00 $ √ Cleanouts 33 EA 1,000.00 33,000.00 $ √
Miscellaneous Subtotal 111,000.00 $
SANITARY SEWERS Subtotal : 355,400.00 $
Contingencies: - $
SANITARY SEWERS Total : 355,400.00 $
***WATER DISTRIBUTION*** Quantity Unit Cost Item Total Contingency Pipes
8" C900 Water Main 1611 LF 100.00 $ 161,100.00 $ √
Water Laterals (Meter to units) 900 LF 50.00 $ 45,000.00 $ √ Pipes Subtotal 206,100.00 $
Miscellaneous
Meters & Assemblies 28 EA 1,500.00 $ 42,000.00 $ √
Irrigation Backflow Device 1 EA 1,200.00 $ 1,200.00 $ √ Fire Hydrant 1 EA 5,000.00 $ 5,000.00 $ √
Air-Release Valve 3 EA 3,000.00 $ 9,000.00 $ √
Blow-off Assembly 2 EA 3,000.00 $ 6,000.00 $ √
Miscellaneous Subtotal 63,200.00 $
WATER DISTRIBUTION Subtotal : 269,300.00 $
Contingencies: - $
WATER DISTRIBUTION Total : 269,300.00 $
****Opinion of Probable Cost****
On-Site
RamCE #20-021

Attachment B
DocuSign Envelope ID: 00E1CD1F-40F4-4E7D-ADDF-F9883AC6CB4E DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 Attachment 1

Opinion of Probable Cost
For Hillcrest Subdivision
***STORM DRAINAGE*** Quantity Unit Cost Item Total Contingency Main Lines and Structures
3" PVC (Thru-Curb Drains) 100 LF 40.00 $ 4,000.00 $ √
6" HDPE 452 LF 45.00 $ 20,340.00 $ √
8" HDPE 263 LF 50.00 $ 13,150.00 $ √
10" HDPE 31 LF 55.00 $ 1,705.00 $ √
12" HDPE 375 LF 60.00 $ 22,500.00 $ √
18" HDPE 590 LF 125.00 $ 73,750.00 $ √
24" RCP 174 LF 125.00 $ 21,750.00 $ √
72" CMP 396 LF 400.00 $ 158,400.00 $ √
Main Lines Subtotal 315,595.00 $
Miscellaneous
Standard Manhole 5 EA 5,000.00 $ 25,000.00 $ √
Deep Manhole (+6') 4 EA 6,500.00 $ 26,000.00 $ √
Manway Riser (SCM-1 & 2) 4 EA 1,500.00 $ 6,000.00 $ √
12" NDS Drain inlet 19 EA 750.00 $ 14,250.00 $ √
4x4 Filterra Unit 3 EA 10,000.00 $ 30,000.00 $ √
4x4.5 Filterra Unit 2 EA 11,500.00 $ 23,000.00 $ √
6x6 Filterra Unit 4 EA 13,000.00 $ 52,000.00 $ √
Christy V12 drain inlet 10 EA 2,500.00 $ 25,000.00 $ √
Low-Lying Landscaped Area 2 EA 500.00 $ 1,000.00 $ √
Concrete Flared End Section 2 EA 1,200.00 $ 2,400.00 $ √ Outfall Apron/ Sonotube Willows 2 EA 5,000.00 $ 10,000.00 $ √ Miscellaneous Subtotal 214,650.00 $
STORM DRAINAGE Subtotal : 530,245.00 $
Contingencies: - $
STORM DRAINAGE Total : 530,245.00 $
***UTILITY RELOCATIONS*** Quantity Unit Cost Item Total Contingency Underground Electric & Traffic
PG&E Application 1 EA 2,500.00 $ 2,500.00 $ √
Joint Trench 1275 LF 150.00 $ 191,250.00 $ √
Unit Services 27 EA 500.00 $ 13,500.00 $ √
Street Lights 10 EA 10,000.00 $ 100,000.00 $ √
Pull Boxes 4 EA 500.00 $ 2,000.00 $ √
Transformers 4 EA 10,000.00 $ 40,000.00 $ √
Subtotal 349,250.00 $
UTILITY RELOCATION Subtotal: 349,250.00 $
Contingencies: - $
UTILITY RELOCATION Total: 349,250.00 $
***ROADWAY/SITE IMPROVEMENTS*** Quantity Unit Cost Item Total Contingency Pavements
6" PCC Vertical Curb 775 LF 60.00 $ 46,500.00 $ √
Asphalt (3" AC section/10" AB) 31163 SF 8.00 $ 249,304.00 $ √ Concrete Driveway (6" PCC/ 6" CLASS II AB) 4044 SF 50.00 $ 202,200.00 $ √ Concrete Valley Gutter 1245 SF 40.00 $ 49,800.00 $ √
Curb Ramp 4 EA 4,500.00 $ 18,000.00 $ √
DG Pathway 1081 SF 5.00 $ 5,405.00 $ √
Emergency Access Gate 1 EA 5,000.00 $ 5,000.00 $ √
Gravel Roadway Section (12" Class II AB) 318 SF 5.00 $ 1,590.00 $ √ Paint Striping 798 LF 2.00 $ 1,596.00 $ √
PCC Sidewalk 6190 SF 30.00 $ 185,700.00 $ √
Rolled Curb & Gutter 1094 LF 80.00 $ 87,520.00 $ √
Signs (Street, Parking, Stop) 14 EA 45.00 $ 630.00 $ √
Pavements Subtotal 853,245.00 $
Site Improvements & Landscaping
6' High board on fencing 425 LF 45.00 $ 19,125.00 $ √
6' Bench to be selected 1 EA 1,400.00 $ 1,400.00 $ √
Fitness Stations 5 EA 6,500.00 $ 32,500.00 $ √
Irrigation Controller 1 EA 3,000.00 $ 3,000.00 $ √
Soil Click Sensors 1 EA 400.00 $ 400.00 $ √
Rain Sensors 1 EA 75.00 $ 75.00 $ √
Ball Valves 1 EA 75.00 $ 75.00 $ √
Mainline Irrigation Pipe 980 LF 6.50 $ 6,370.00 $ √
Lateral Irrigation Pipe 180 LF 4.25 $ 765.00 $ √
Sleeves 700 LF 4.25 $ 2,975.00 $ √
Quick Coupler Valves 7 EA 300.00 $ 2,100.00 $ √
Drip Valve/ Regulator/ Filter Assembly 15 EA 135.00 $ 2,025.00 $ √ Remote Control Valve (lawn) 1 EA 150.00 $ 150.00 $ √
Pop-up Sprinkler Heads 8 EA 8.75 $ 70.00 $ √
Drip Emitters 1418 EA 0.75 $ 1,063.50 $ √
Valve Boxes (RCV+QC+Ball Valve) 23 EA 225.00 $ 5,175.00 $ √ RamCE #20-021

Attachment B
DocuSign Envelope ID: 00E1CD1F-40F4-4E7D-ADDF-F9883AC6CB4E DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 Attachment 1

Opinion of Probable Cost
For Hillcrest Subdivision
Drip Tubing 3000 LF 1.25 $ 3,750.00 $ √
Wire 240 LF 0.50 $ 120.00 $ √
Soil Prep (for Landscaping) 24163 SF 1.00 $ 24,163.00 $ √ Lawn 284 SF 2.75 $ 781.00 $ √
15 Gallon Trees 56 EA 280.00 $ 15,680.00 $ √
15 Gallon Shrubs 17 EA 60.00 $ 1,020.00 $ √
5 Gallon Shrubs 446 EA 60.00 $ 26,760.00 $ √
1 Gallon Shrubs 122 EA 28.00 $ 3,416.00 $ √
Mulch 251 CY 70.00 $ 17,570.00 $ √
Retaining Curb 242 LF 50.00 $ 12,100.00 $ √
Site Improvements & Landscaping Subtotal 182,628.50 $
ROADWAY/SITE IMPROVEMENTS Subtotal: 1,035,873.50 $
Contingencies: - $
ROADWAY/STREET IMPROVEMENTS Total: 1,035,873.50 $
***MAJOR CATEGORY TOTALS (Does not include Contingency Costs )*** Site Preparation and Grading $ 52,000.00
Sanitary Sewers $ 355,400.00
Water Distribution $ 269,300.00
Storm Drainage $ 530,245.00
Electrical $ 349,250.00
Roadway/Site Improvements & Landscaping $ 1,035,873.50
TOTAL COST WITHOUT CONTINGENCIES 2,592,068.50 $
***SUMMARY (Including Contingency Costs) ***
TOTAL COST SUBJECT TO CONTINGENCY 2,592,068.50 $
OVERHEAD: 5% 129,603.43 $
PROFIT: 5% 129,603.43 $
CONTINGENCIES: 15% 388,810.28 $
TOTAL ESTIMATED CONSTRUCTION COST: 3,240,085.63 $
NOTES
Since Ramsey Civil Engineering, Inc., has no control over the cost of labor, materials, or equipment, or over the contractor's methods of determining prices, or over competitive bidding or market conditions, our opinions of probable project cost or construction cost provided herein are to be made on the basis of our experience and qualifications and represent our best judgment as design professionals familiar with the construction industry, but Ramsey Civil Engineering, Inc., cannot and does not guarantee that proposals, bids, or the construction cost will not vary from opinions of probable cost prepared by the firm RamCE #20-021

Attachment B
DocuSign Envelope ID: 00E1CD1F-40F4-4E7D-ADDF-F9883AC6CB4E DocuSign Envelope ID: 27A59CD1-1DE3-4C62-8555-7BFE5F0BEF24 Attachment 1

Subdivision Bond
Faithful Performance

SUBDIVISION BOND
Bond No. S7 A2SU0000660
Premium:$ 47,693.00
Whereas, City of Watsonville, hereinafter designated as "Obligee"), and LANDCO HILLCREST, LLC (hereinafter designated as "the Principal") have entered into an Agreement whereby the Principal agrees to install and complete certain designated public improvements, which Agreement, dated ______ , 2022, and identified as project "Stage 1 Improvement Plans For Hillcrest 511 Ohlone Parkway Watsonville, California 95076", APNs 018-372-14 and 018-381-01, prepared by RAMSEY CIVIL ENGINEERING INC, dated May 10, 2022 and revised October 14, 2022 (the "Stage One Improvement Plans", is hereby referred to and made a part hereof.

Whereas, Said Principal is required under the terms of said Agreement to furnish a bond for the faithful performance of said agreement.

Now, therefore, we, the Principal and American Alternative Insurance Corporation, as surety, are held and firmly bound unto Obligee, in the penal sum of Three Million, Eight Hundred and Fifteen Thousand, Four Hundred and Five Dollars and Sixty Three Cents dollars ($3,815,405.63),) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors , executors and administrators, jointly and severally, firmly by these presents. The condition of this obligation is such that if the above bounded Principal, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the said Agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless Obligee, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in fuil force and effect.

Attachment 1

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

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

NOW, THEREFORE, if the above-bounden Principal shall well and truly perform the work referred to in such Agreement, then this obligation shall be void; otherwise to remain in full force and effect.

IN WITNESS WHEREOF, the seal and signature of said Principal is hereto affixed and the corporate seal and the name of the said Surety is hereto affixed and attested by its duly authorized Attorney in Fact at Irvine, California this 23rd day of November, 2022.

LANDCO HILLCREST, LLC
(Seal)
American Alternative Insurance Corporation
(Surety) (Seal)
By: ---tf---l-...... :=:!"'.._.,,~~---<-~=-6"'"\-,----- Attachment 1

ALL- PURPOSE

CERTIFICATE OF ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California }
County of ____ O_ra_n_g_e ___ _ }
On NOV 2 3 2022 before me, Gina L. Garner, Notary Public ----------- -------.,,.(A,.,.ere=,n..,..,se""rt-=-na=-=m=-=e-=-an""d"'fi"'ue""'o"tth""e""'o"'tt1ce==-r) ____ _ personally appeared Martha Barreras
who proved to me on the basis of satisfactory evidence to be the person~ whose name(:$) is/~ subscribed to the within instrument and acknowledged to me that ~e/she/~ executed the same in b{is/her/their authorized capacity~es:x and that by :msiher/tbail signature~ on the instrument the person(:s), or the entity upon behalf of which the person~ acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Notary
~d~~ Public Signature (Notary Public Seal)
GINA L. GARNER
• Notary Publfc - California
Orange County
Commission If 2361777
Y Comm, Expires Jun 18, 2025

ADDITIONAL OPTIONAL INFORMATION

DESCRIPTION OF THE ATTACHED DOCUMENT
INSTRUCTIONS FOR COMPLETING nns FORM
This form complies with curre/11 California s1at111es regarding notary wording and, if needed, should be comple1ed and al/ached to 1he doc11111e111. Acknolwedge111sfro111 other slates may be compleledfor documems being sell/ to that s/a/e so long as the wording does 1101 require 1he California 11oto1y to viola1e California no/a,y low. (Title or description of attached document)
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CAPACITY CLAIMED BY THE SIGNER
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Impression must not cover text or lines. If seal impression smudges, re-seal if a sufficient area pennits, otherwise complete a different acknowledgment fonn. • Signature of the notary public must match the signature on file with the office of the county c (erk.
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Attachment 1

CERTIFIED COPY POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS: That the AMERICAN ALTERNATIVE INSURANCE CORPORATION, a corporation organized and existing by virtue of the laws of the State of Delaware ("Corporation") with offices at 555 College Road East, Princeton, N.J. 08543, has made, constituted and appointed, and by these presents, does make, constitute and appoint:

Edward C. Spector; Ethan Spector; Erin Brown; Bernadette Aleman; Donna Garcia; Marina Tapia; KD Wapato; Simone Gerhard; Adriana Valenzuela; Janina Monroe; Jennifer Ochs; Martha Barreras; Michelle Haase; Aidan Smock; Sandra Corona; Charles R Teter Ill; Sarah Campbell; and Rachel A Mullen its true and lawful Attorneys--in-Facl at Princeton, in the state of New Jersey, each of them alone to have full power to act without the other or others, to make, execute and deliver on its behalf, as Surety or Co-surety, bonds and undertakings given for any and all purposes, also to execute and deliver on its behalf as aforesaid renewals, extensions, agreements, waivers, consents or stipulations relating to such bonds or undertakings provided, however, that no single bond or undertaking so made, executed and delivered shall obligate said Company for any portion of the penal sum thereof in excess of the sum of One Hundred Million Dollars ($100,000.000).

Such bonds and undertakings for said purposes, when duly executed by said Attorney(s)-in-Fact, shall be binding upon said Company as fully and to thesame extent as if signed by the President of said Company under its corporate seal attested by its Secretary.

This appointment is made under and by authority of a certain Resolution adopted at a meeting of the Board of Directors of said Company duly held on the 27th day of Augusl 1975, a copy of which appears below.

IN WITNESS WHEREOF, the AMERICAN ALTERNATIVE INSURANCE CORPORATION has caused its corporate seal to be hereunto affixed, and these presents to be signed by its duly authorized officers this 241h day of September, 2021 .

By:

Attest:

STATE OF NEW JERSEY, COUNTY OF SOMERSET
l\llichael G. Kerner
President
,fIgnacio Rivera
Deputy General Counsel & Secretary
The foregoing instrument was acknowledged before me by means of online notarization this 241h day of September, 2021 , by Michael G. Kerner and Ignacio Rivera, who are personally known to me.

My Ccmmission Expires February 8, 2026

SECRETARY'S CERTIFICATE
The undersigned, Ignacio Rivera, hereby certifies:

1. That the undersigned is Secretary of American Alternative Insurance Corporation, a corporation of the Stat.e of Delaware;

2. That the original power of attomey of which the foregoing is a copy was dnly e:,;:ecnted on behalf of said Corporation on the day of its date, and has not since been revoked, amended or modified; that the undersigned has compared the foregoing copy thereof with said original power of attomey, and that the same is a true and correct copy of said original power of attorney and of the wbole thereof;

3. That the original resolution of wbioh the following is a copy was duly adopted at, and recorded in Lhe minutes ot; a regular meeting of the Board of Directors of said C-01poration duly held on August 4, 1998, and has not since been revoked, amended or modified.

RESOLVED, that each of the following officers of this Corporation, namely, the President, the Executive Vice President, the Senior V ice Presidents, and the Vice Presidents, be, and they hereby are, authorized, from time to time in their discretion, lo appoint such agent or agents or attorney or attorneys-in-fact as deemed by them necessru-y or desirable for the purpose of crui:ying on this Corporation's business, and to empower such agent or agents or attomey or attorneys-in-fact to execute and deliver, in this Corporation's name and on its behalf ru1d under its seal or otherwise, surety bonus, surety andertiik:ings or surety contmcts made by (bis Corporation us surety tltereon.

RESOLVED, that the signature of any authorized officer of the Corporation and the C-01poration's seal may be affixed by facsimile to any power of attomey and revocation of any power of attorney or cedificate of either given for the execution of any surety bond, surety l1Ilde1tak.ing, or surety contract, such signature and seal, "ben so used being hereby adopted by the Corporation as the original signature of such officer and the original seal of the Corporation, to be valid and binding upon the Corporation with the same force and effect as though manually affixed.

FllRTIIER RESOLVED, that any prior appointments by the Corporation ofMGAs are, in all respects, hereby ratified, confirmed and approved.

FlJRTHER RESOLVED .. that the Secretary or any Assistant Secretary of this Coiporation is hereby authorized to certi:f'.y and deliver to any person to whom such ce1tification and delive1y may be deemed necessary and desirable in the opinion of such Secretmy or Assistant Secretmy, a trne copy of the foregoing resolution.

4. The undersigned has compared the foregoing copies of said original resolutions as so recorded, and they are the same trne at1d com:ct copies of said original resolutions as so recorded and of the "hole thereof.

Witness the hand of the undei,;igned and the seal of said Corporation this 23rd day of __ N_o_v_e_m_ b_e_r __ , 20 22.

AMERICAN ALTERNATIVE INSURANCE CORPORATION
Ignacio Rivera
Deputy Genernl Counsel & Secret,rry TRS-1001-1
Attachment 1

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
Co~ y of San M3,~
On ~Q)lfMAW P-~""oetore me, Shruti Bhalla, Notary Public Date , , 1, Al <I\. lr.;)'n / Here Insert Name and Title of the Officer personally appeared __ JV\/.JJ ___ f"_, .Y_ ~~~ ~-'U ____________________ _ Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person~ whose name~ is/m e subscrjbedjto the within instrumel)t and acknowledge;l to me that he/slire/th~ executed the same in his/hsi!f/thlir authorized capacity(i~ ). and that by jlis/h6-/tbeir signature~ on the instrument the person(11', or the entity upon behalf of which the persono,f acted, executed the instrument.

Place Notary Seal Above
I certify under PENAL TY OF PERJURY under the laws
of the State of California that the foregoing paragraph is true and correct.
---------------OPTIONAL---------------
Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an un~· tended document.

Description of Attached Document ~iV)(.11,;\ ii\
Title or Type of Docu e ·~..-111.+-tf-+- _._"--------',e___---l>- IUf __ \ ______________ _ Document Date: - --+H:3~,0.,C..--""'....=-=-------'l'1r+----l""11'--------- Number of Pages: _____ _ Signer(s) Other Than Named Above: ~---+-------------------- ~i~~=~~~=~e~1 ~ ~ ~1<!@2( □ Corporate Officer ~ e(s): ______ _ Signer's Name: ____________ _
□ Corporate Officer - Title{s): ______ _
□ Partner - □ Limited □ General □ Partner - □ Limited □ General □ Individual □ Attorney in Fact □ Individual □ Attorney in Fact □ Trustee □ Guardian or Conservator □ Trustee □ Guardian or Conservator Other: _____________ _ □ Other: _____________ _
Signer Is Representing: _________ _ Signer Is Representing: _________ _ ©2015 National Notary Association· www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 Attachment 1

Subdivision Bond
Labor & Material

SUBDIVISION BOND
Bond No. S7 A2SU0000660
Premium included in Performance Bond
Whereas, City of Watsonville, (hereinafter designated as "Obligee"), and LANDCO HILLCREST, LLC (hereinafter designated as "the Principal") have entered into an Agreement whereby the Principal agrees to install and complete certain designated public improvements, which Agreement, dated _____ , 2022, and identified as project "Stage 1 Improvement Plans For Hillcrest 511 Oh/one Parkway Watsonville, California 95076" ,APNs 018-372-14 and 018-381-01, prepared by RAMSEY CIVIL ENGINEERING INC, dated May 10, 2022 and revised October 14, 2022 (the "Stage One Improvement Plans", is hereby referred to and made a part hereof.

Whereas, Under the terms of the Agreement, the Principal is required before entering upon the performance of the work, to file a good and sufficient payment bond with Obligee to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code.

Now, therefore, we the Principal and American Alternative Insurance Corporation, as corporate surety, are held firmly bound unto Obligee and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the agreement and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the sum of Three Million, Eight Hundred and Fifteen Thousand, Four Hundred and Five Dollars and Sixty Three Cents ($3,815,405.63), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this work or labor, that the surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by county (or city) in successfully enforcing this Attachment 1

obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond.

Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect.

The surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration, or addition. In witness whereof, this instrument has been duly executed by the Principal and surety above named, on
SIGNED, SEALED, DATED: November 23, 2022

LANDCO HILLCREST, LLC
(Principal) (Seal)
By: (J
American Alternative Insurance Corporation
(Surety) (Seal)
By:

Attachment 1

ALL- PURPOSE

CERTIFICATE OF ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California }
County of ____ ~O~r~a_n._.g~e ___ _ }
On __ N_0_V_2_3_20_· zz_, __ before me, __ G_in_a_L_. G_ar=n_e=r,~N_o_t_a~ry=P~u=b~l=ic~--- <Aere insert name and tide of the ott,cer) personally appeared Martha Barreras
who proved to me on the basis of satisfactory evidence to be the person~ whose name($) is/~ subscribed to the within instrument and acknowledged to me that Rt/she/~ executed the same in hts/her/their authorized capacity~es:x and that by msiher/tim signature(sq on the instrument the personts), or the entity upon behalf of which the person~ acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
~
GINA L. GARNER
Notary Public . California
Orange County
' Commission ii 2361777
Notary Public Signature (Notary Public Seal) My Cor.1m, Expires Jun 18, 2025

ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM

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□ Corporate Officer
(Title)
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0 Other _________ _
20 15 Version wv,-v,.,.NotaryClasses.corn 800-873-9865
This form complies with current Califomia statutes regarding notary wording and. if needed, should be completed and auached to the document. Acknolwedgems from other states may be campletedfor documems being sell/ to that state so long as the wording does 1101 require the California nota,y to ,,iolate California nota,y law. • State and County infonnation must be the State and Collllty where the document signer(s) personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s) personally appeared which must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public). • Print the oame(s) of document sigoer(s) who personally appear at the time of notarization.
• Indicate the correct singular or plural fonns by crossing off incorrect fonns (i.e. lte/shc/they, is l&fe) or circling the correct forms. Failure to correctly indicate this infonnation may lead to rejection of document recording. • The notary seal impression must be clear and photographically reproducible.

Impression must not cover text or lines. If seal impression smudges, re-seal if a sufficient area pennits, otherwise complete a different acknowledgment fonn. • Signature of the notary public must match the signature on file with the office of the county clerk.
••• Additional infonnation is not required but could help to ensure this acknowledgment is not misused or attached to a different document. ❖ Indicate title or type of attached document, number of pages and date. ❖ Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary). • Securely attach this document to the signed document with a staple.

Attachment 1

CERTIFIED COPY POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS: That the AMERICAN ALTERNATIVE INSURANCE CORPORATION, a corporation organized and existing by virtue of the laws of the State of Delaware ("Corporation") with offices at 555 College Road East. Princeton, N.J. 08543, has made, constituted and appointed, and by these presents. does make, constitute and appoint:

Edward C. Spector; Ethan Spector; Erin Brown; Bernadette Aleman; Donna Garcia; Marina Tapia; KD Wapato; Simone Gerhard; Adriana Valenzuela; Janina Monroe; Jennifer Ochs; Martha Barreras; Michelle Haase; and Aidan Smock its true and lawful Attorneys-in-Fact, at Princeton, in the state of New Jersey, each of them alone to have full power to act without the other or others. to make, execute and deliver on its behalf, as Surety or Co-surety, bonds and undertakings given for any and all purposes. also to execute and deliver on its behalf as aforesaid renewals. extensions, agreements. waivers, consents or stipulations relating to such bonds er undertakings provided, however, that no single bond or undertaking so made, executed and delivered shall obligate said Company for any portion of the penal sum thereof in excess of the sum of One Hundred Million Dollars ($100100010001.

Such bonds and undertakings for said purposes. when duly executed by said Attomey(s}-in-Fact, shall be binding upon said Company as fully and to thesame extent as if signed by the President of said Company under its corporate seal attested by its Secretary.

This appointment is made under and by authority of a certain Resolution adopted at a meeting of the Board of Directors of said Company duly held on the 27th day of August. 1975, a copy of which appears below.

IN WITNESS WHEREOF, the AMERICAN ALTERNATIVE INSURANCE CORPORATION has caused its corporate seal to be hereunto affixed, and these presents to be signed by its duly authorized officers this 24th day of September, 2021 .

By:

Attest:

Michael G. Kerner
President
,fIgnacio Rivera
Deputy General Counsel & Secretary

STATE OF NEW JERSEY, COUNTY OF SOMERSET
The foregoing instrument was acknowledged before me by means of online notarization this 24th day of September, 2021, by Michael G. Kerner and Ignacio Rivera, who are personally known to me.
u
My Commission Expires February 8, 2026

SECRETARY'S CERTIFICATE
The undersigned, Ignacio Rivera, hereby certifies:

1. That the undersigned is Secretary of American Alternative htsurance Corporation, a cotporation of the State of Delaware;

2. That the original power of attorney of which the foregoing is a copy was duly executed on behalf of said Cotporation on the day of its date, and has not since been revoked, amended or modified; that the undernignedhas compared the foregoing copy thereof with said original power of attorney, and that the same is a true and correct copy of said original power of attorney and of the "hole thereof;

3. That the original resolution of,¾hich the following is a copy was duly adopted at, mid recorded in tJ1e minutes ot; a regular meeting of the Board of Directors of said Corporation duly held on August 4, 1998, and has not since been revoked, amended or modified.

RESOLVED, that each of the following ofticers of this Cotporation, namely, the President, the Executive Vice President, the Senior Vice Presidents, and the Vice Presidents, be, and they hereby are, authorized, from time to time in their discretion, to appoint such agent or agents or attorney or attomeys-in°fact as deemed by them necessruy or desirable for the purpose of carrying on this Corporation's business, and to empower such agent or agents or attorney or attorneys-in-fact to execute and deliver, in this Corporation's name and on its behalf, and nnder its seal or otherwise, surety bonds, surety undertukings or surety contrnct,, madt: by tl1is Corporntion as scm;ty t.ltt:n:on.

RESOLVED, that the signatme of any authorized officer of the Corporation and the Corporation's seal may be affixed by facsimile to any power of attorney mid revocation of any power of attomey or cettificate of either given for the execution of any surety bond, surety undertaking, or surety contract, such signature and seal, when so used being hereby adopted by the Co1poration as the original signature of such officer and the mi gin al seal of the Corporation, to be valid and binding upon the Corporation with the same force and effect as though manually affb::ed.

FURTHER RESOLVED, that any prior appointments by the Corporation of.MGAs are, in all respects, hereby ratified, confirmed and approved.

FURTHER RESOLVED, that the Secretary or miy Assistant Secretaiy of this Corporation is hereby authorized to certify and deliver to any person lo whom such certification and delivery may be deemed necessary and desirable in the opinion of such Secretai,, or Assistant Secretaty, a true copy of the foregoing resolution.

4. The undersigned has compared the foregoing copies of said original resolutions as so recorded, and they ate the same true and conect copies of said original resolutions as so recorded and of the ,vhole tliereof.

Witness the hand of the undersigned ruid the seal of said Corporation this 23r<!Jay of November , 20 22_ AMERICAN ALTERNATIVE INSURANCE CORPOR-\TION
Ignacio Rivera
Deputy 0--nernl Counsel & Se,,,-ret,,ry TRS-1001-1
Attachment 1

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of ~ ateo
on 11w ~ o13g~e, ___ S_h_r_ut_i _B_h_a_lla_,_N_o_t_a~ry_P_u_b_l_ic ______ _ Date ~ ~ ,'/J-n / personally appeared _i ... ~ ........ ~ - ~<.Y~ - ~ ~ - YJ) ____________________ _ Here Insert Name and Title of the Officer
Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the perso~ whose nam~ is/j119 subscribe9 to the within instrume9t and acknowledged t.9 me that he/~ /fi(ey executed the same in his/i;}er/t){eir authorized capacity(ii!§), and that by hiitlier/~eir signatur~ on the instrument the person.!*' or the entity upon behalf of which the person¥ acted, executed the instrument.

Place Notary Sea/ Above
I certify under PENAL TY OF PERJURY under the laws
of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand an
----------------OPTIONAL----------------
Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintend~d docu ent.

Description of Attached Document \f'f I()V\
Title or Type of Do ~ r,:~~J;-,,-- ---..-- -4rol~ ~~..:......:.-=-___:_-- ~ ----------- Document Date: I\' Number of Pages: _____ _ Signer(s) Other Than Named Above: --~--------------------- C_apacity(ies) Claill)8~~s)1a-v
Signer's Name: - ~......,...,,,~,._.,L.::._·~--,:::___i.:b ... ~-,:::__ __ Signer's Name: ____________ _ D Corporate Officer - Title(s): ______ _ D Corporate Officer - Title(s): ______ _ D Partner - D Limited D General D Partner - D Limited D General D Individual D Attorney in Fact D Individual D Attorney in Fact D Trustee D Guardian or Conservator D Trustee D Guardian or Conservator D Other: ______________ _ D Other: _____________ _
Signer Is Representing: _________ _ Signer Is Representing: _________ _ •
©2015 National Notary Association• www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827} Item #5907 Attachment 1

MAINTENANCE BOND
FIRST TERM PREMillM FULLY EARNED
Bond Number: S7 A2SU0000662
Premium: $954.00
KNOW ALL MEN BY THESE PRESENTS: That LANDCO HILLCREST, LLC as Principal, and AMERICAN ALTERNATIVE INSURANCE CORPORATION, a corporation organized and existing under the laws of the State of Pennsylvania and duly authorized to transact a general surety business in the state of Pennsylvania, hereinafter called the Surety, are held and firmly bound unto City of Watsonville, hereinafter called Obligee, in the full and just sum of Three Hundred and Eighty-One Thousand, Five Hundred and Forty Dollars and Fifty Six Cents ($381,540.56) lawful money of the United States of America, for the payment of which sum, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.

WHEREAS, on the __ day of _______ 2022, the above named Principal entered into an agreement with the Obligee for: Stllge 1 Improvement Plllns For Hillcrest 511 Oh/one P"rkw"y Wlltsonville, Clll~fornill 95076', APNs 018-372-14 and 018-381-01,prepared by RAMSEY CIVIL ENGINEERING INC, dated May 10, 2022 and revised October 14, 2022 (the "St"ge One Improvement Plans"
WHEREAS, under the terms of said agreement, Principal is required to guarantee replacement and repair of improvements as described therein for a period of One ( 1) year( s) from and after the date of completion and acceptance of said improvements;
NOW, THEREFORE, If the above Principal for a period of One (1) year(s) from and after the date of completion and acceptance of same by said Obligee, replace any and all defects in said work resulting from defective materials or defective workmanship, then the above obligation to be void; otherwise to remain in full force and effect.

Any claims upon this bond must be made prior to the expiration of the one (1) year maintenance period.

IN WITNESS WHERE OF, the seal and signature of said Principal is affixed hereto and the corporate seal and the name of said Surety is hereto affixed and attested by its duly authorized Attorney-in-Fact
this 23rd day of November, 2022.

Attachment 1

By:

LANDCO IDLLCREST, LLC
(Principal)
u !ii
Amel'ican Alternative Insul'ance Corporation
(Surely)
BY:

Attachment 1

ALL- PURPOSE

CERTIFICATE OF ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California }
County of ____ ""'"O-'-ra=-.c.ng..._e=----- }
On NOV 2 3 2022 before me, Gina L. Garner, Notary Public ----------- --------<fi-•re-,n•-•-rt-na_m_e-an~a-uu-e-ol-th_e_on-,ce-,~) ----- personally appeared Martha Barreras
who proved to me on the basis of satisfactory evidence to be the person~ whose name($) is/~ subscribed to the within instrument and acknowledged to me that lite/she/~ executed the same in Ais/her/t:heir authorized capacity~es:x and that by msiher/tim signature(sq on the instrument the person(&}, or the entity upon behalf of which the person~ acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
~
WITNESS my hand and official seal.
(Notary Public Seal)
GINA L. GARNER
Notary Public - California
Orange County
Commission # 2361777
My Comm. Expires Jun 18, 2025

ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM

DESCRIPTION OF THE ATTACHED DOCUMENT
(Title or description of attached document)
(Title or description of attached document continued)
Number of Pages __ Document Date ___ _

CAPACITY CLAIMED BY THE SIGNER
□ Individual (s)
□ Corporate Officer
(Title)
□ Partner(s)
Ix! Attorney-in-Fact
□ Trustee(s) □ Other _________ _
2015 Version 1w.Jw. NotaryClasses.corn 800-873-9865
This form complies with current California srarures regarding nota1y wording and, if needed, should be completed and al/ached 10 the docume/11. Acknolwedgentsfrom other stares may be completed for documems being sell/ lo that slate so long as the wording does not require the California 11010,y to violate California nota,y law. • State and County infonnation must be the State and Cow1ty where the document signer(s) personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s) personally appeared which must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization.
• Indicate the correct singular or plural fonns by crossing off incorrect fonns (i.e. he/she/they, is 1-) or circling the correct forms. Failure to correctly indicate this infonnation may lead to rejection of document recording. • The notary seal impression must be clear and photographically reproducible.

Impression must not cover text or lines. If seal impression smudges, re-seal if a sufficient area pennits, otherwise complete a different acknowledgment fonn. • Signature of the notary public must match the signature on file with the office of the county c !erk.
❖ Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. ❖ Indicate title or type of attached document, number of pages and date. ❖ lndicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary). • Securely attach this document to the signed document with a staple.

Attachment 1

CERTIFIED COPY POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS: That the AMERICAN ALTERNATIVE INSURANCE CORPORATION, a corporation organized and existing by virtue of the laws of the State of Delaware ("Corporation·) with offices at 555 College Road East, Princeton, N.J. 08543, has made, constituted and appointed, and by these presents. does make, constitute and appoint:

Edward C. Spector; Ethan Spector; Erin Brown; Bernadette Aleman; Donna Garcia; Marina Tapia; KO Wapato; Simone Gerhard; Adriana Valenzuela; Janina Monroe; Jennifer Ochs; Martha Barreras; Michelle Haase; and Aidan Smock its true and lawful Attorneys-in-Fact at Princeton, in the state of New Jersey, each of them alone to have full power to act without the other or others. to make, execute and deliver on its behalf, as Surety or Co-surety. bonds and undertakings given for any and all purposes, also to execute and deliver on its behalf as aforesaid renewals, extensions, agreements, waivers. consents or stipulations relating to such bonds or undertakings provided, however. that no single bond or undertaking so made, executed and delivered shall obligate said Company for any portion of the penal sum thereof in excess of the sum of One Hundred Million Dollars ($100,000,000).

Such bonds and undertakings for said purposes, when duly executed by said Attorney(s)-in-Fact, shall be binding upon said Company as fully and to thesame extent as if signed by the President of said Company under its corporate seal attested by its Secretary.

This appointment is made under and by authority of a certain Resolution adopted at a meeting of the Board of Directors of said Company duly held on the 27th day of August, 1975, a copy of which appears below.

IN WITNESS WHEREOF, the AMERICAN ALTERNATIVE INSURANCE CORPORATION has caused its corporate seal to be hereunto affixed, and these presents to be signed by its duly authorized officers this 24th day of September. 2021 .

By:

Attest:

Michael G. Kerner
President
rfIgnacio Rivera
Deputy General Counsel & Secretary

STATE OF NEW JERSEY, COUNTY OF SOMERSET
The foregoing instrument was acknowledged before me by means of online notarization this 24th day of September, 2021, by Michael G. Kerner and Ignacio Rivera, who are personally known to me.
u
My Commission Expires February 8, 2026

SECRETARY'S CERTIFICATE
The undersigned, Ignacio Rivera, hereby certifies:

1. That the undersigned is Se~retary of American Altemative fo.surance Corporation, a corporation of the State of Delawan,;

2. That the original power of attorney of \\-hicb the foregoing is a copy was duly e,cecuted on behalf of said Corporation on the day of its date, and bas not since been revoked, amended or modified; that the undersigned has compared the foregoing copy thereof with said original power of attorney, and that the same is a true and correct copy of said original power of attorney and of the whole thereof;

3. That the original resolution of which the following is a copy was duly adopted at, and recorded in the minutes ot; a regular meeting of the Board of Directors of said C-0rporation duly held on August 4, 1998, and has not since been revoked, amended or modified.

RESOLVED, that each of the following officers of this Corporation, namely, the President, the Executive Vice President, the Senior Vice Presidents, and the Vice Presidents, be, and they hereby are, authorized, from time to time in their discretion, to appoint such agent or agents or attomey or attorneys-in-fact as deemed by them necessary or desirable for the purpose of carrying on this Corporation's business, and to empower such agent or agents or attorney or attorneys-in-fact to execute and deliver, in this Corporation's name and on its heh.alt; and under its seal or otherwise, surety bonds, snn:ty umlemlkings or sun:ty contracts made by tl1is Corporation as surety- tlten:on.

RESOLVED, that the signature of any authorized officer of the C-0rporation and the C-0rporation's seal may be affixed by facsimile to any power of attomey and revocation of any power of attorney or certificate of either given for the execution of any surety bond, surety unde1tak.ing, or surely contract, such signature and seal, when so used being hereby adopted by the Corporation as the original signature of such officer and the original seal of the Corporation, to be valid and binding upon the Corporation with the same force and effect as though manually affixed.

FURTHER RESOLVED, that any prior appointments by the Corporation ofMGAs rue, in all respects, hereby ratified, confirmed and approved.

FURTHER RESOLVED, that the Secretary or any Assistant Secretruy of this Corporation is hereby authorized to certify and deliver to ru1y person to "horn such ce11ificalion and delive1y may be deemed necessary ru1d desirable in the opinion of such Secretru-y or A%istant Secretruy, a hue copy of the foregoing resolution.

4. The undersigned has compared the foregoing copies of said original resolutions as so recorded, and they ate the same tme and correct copies of said original resolutions as so recorded and of the whole thereof.

Witness the hand of the undersigned ru1d the seal of said Cmporation this 23r9:iay of November , 20 22_

AMERICAN ALTERNATIVE INSURANCE CORPORATION
Ignacio Rivera
Deputy General Coun.wl & Secretary TRS-1001-1
Attachment 1

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
Co~yy of San Mateo
On~ Q>ltwb/~ore me, Shruti Bhalla, Notary Public
Date ~ \ ,. .I • ~ , I ~ , Here Insert Name and Title of the Officer personally appeared ---~- -""'------=--u/ --"--__ J..JISJ ___ 'JJ ___________________ _ Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(sf whose name~ is/~ subscribeglto the within instrument and acknowledged to me that hei~ /ttrey executed the same ip his/heffl~ir authorized capacit~ ), and that by hisl):)er/t~ r signature~ on the instrument the person.{5), or the entity upon behalf of which the person~ acted, executed the instrument.

Place Notary Seal Above
I certify under PENAL TY OF PERJURY under the laws
of the State of California that the foregoing paragraph is true and correct.

WITNESS my ha d
----------------OPTIONAL----------------
Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.

Description of Att
Title or Type of Do aiy)p,d
Document Date: --'--'---=----=- -"-"-=----- --\-------J----1f-A-------Number of Pages: _ ____ _ Signer(s) Other Th
C_apacity(ies) C~l\l.§~ ln~~~~
Signer's Name: ..... ~ .... ~-....__,'--_ '--~,O,,C.='-'------ □ Corporate Officer==niles): ______ _
Signer's Name: ____________ _
□ Corporate Officer - Title(s): ______ _
□ Partner - □ Limited □ General □ Partner - □ Limited □ General □ Individual □ Attorney in Fact □ Individual □ Attorney in Fact □ Trustee □ Guardian or Conservator □ Trustee □ Guardian or Conservator Other: _____________ _ □ Other: _____________ _
Signer Is Representing: _________ _ Signer Is Representing: _________ _ •
©2015 National Notary Association• www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 Attachment 1

Bond No. S7A2SU0000661
Premium: $200.00

MONUMENT BOND
Subdivision Map Act Bond Fom,at
WHEREAS, LANDCO HILLCREST, LLC, hereinafter designated as "Principal", desires to record a final map for the development identified as: Stage 1 Improvement Plans For Hillcrest 511 Ohlone Parkway Watsonville, California 95076", APNs 018-372-14 and 018-381-01, prepared by RAMSEY CIVIL ENGINEERING INC, dated May 10, 2022 and revised October 14, 2022 (the "Stage One Improvement Plans" WHEREAS, pursuant to Article 9, Chapter 1, Division 2, SUBDIVISION, of the Government Code of the State of California, the interior monuments shown on said final map need not be set at the time the map is recorded and said "Principal" wishes to have the interior monuments set after the time the map is recorded. Said "Principal" agrees to furnish a security guaranteeing tl1e cost of setting such monuments.

NOW, THEREFORE, We, the "Principal" and American Alternative Insurance Corporation, as Surety, are held and finnJy bound unto the City of Watsonville in the penal sum of Sixteen Thou.sand DoJJai·s ($16,000), Jawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, fumly by these presents.

The conditions of this obligation is such that if the monuments are set, and the engineer or surveyor setting the final monuments shall have been paid, then this obligation shall become null and void. Othenvise it shall be and remain in full force and effect.

As part of the obligation secured hereby and in addition to the amount of deposit specified above, it is agreed that we shall pay the costs and reasonable expenses and fees, including reasonable attorney's fees, if any, incurred by the City in successfully enforcing such obligation against us, all to be taxed as costs and included in any judgment rendered.

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

IN WITNESS WHEREOF, this instrument has been duly executed by the principal and surety above named, on November 23, 20202.

Principal Surety
LANDCO HILLCREST, LL~
fy LL Q ~~-
American Altema ive Insurance Cm-poration
By:

Attachment 1

ALL- PURPOSE

CERTIFICATE OF ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California }
County of ____ O;:;....;..;:ra=n.:..;;q""'e;__ __ _ }
On NOV 2 3 2022 before me, Gina L. Garner, Notary Public ----------- -------.,,.(H""ere=,n.,..,,e..,.rt"'na"'m""e"'an""d""'OU""e""ol"'th"'e""off""1ce""r,...) ____ _ personally appeared Martha Barreras
who proved to me on the basis of satisfactory evidence to be the person~ whose name(:$) is/~ subscribed to the within instrument and acknowledged to me that bt:e/she/tbey executed the same in his/her/tttecr authorized capacity~es:x and that by msiher/ib:lm signature~ on the instrument the person~. or the entity upon behalf of which the person~ acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

GINA l . GARNER
Notary Pub lic . Ca lifornia
Orange County f
Commission :t 2361777
~ ~~8:Pires Jun 18, 2025
Notary Public Signature ' (Notary Public Seal)

ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING TIDS FORM

DESCRIPTION OF THE ATTACHED DOCUMENT
(TiUe or description of attached document)
(TiUe or description of attached document continued)
Number of Pages __ Document Date ___ _

CAPACITY CLAIMED BY THE SIGNER
□ Individual (s)
□ Corporate Officer
(Title)
□ Partner(s)
(x] Attorney-in-Fact
□ Trustee(s)
0 Other _________ _
2015 Version wv;w.Nota ryClasses.com 800-873-9865
Thisfom1 complies wilh curren/ Califomia s/a/llles regarding nolary• wording and, if needed, should be comple1ed and al/ached 10 /he doc11111e111. Acknolwedgems from other sla/es may be comple1edfor documell/s being sell/ lo 1ha1 stale so long as the wording does 1101 require 1he California 1101a1y lo violale California no101y law. • Stale and County infonnation must be the State anrl Cow1ty where the document signer(s) personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s) personally appeared which must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her commission foltowed by a comma and then your title (notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization.
• Indicate the correct singular or plural fonns by crossing off incorrect fonns (i.e. he/she/~ is /a,e) or circling the correct forms. Failure to correctly indicate this information may lead to rejection of document recording. • 1be notary seal impression must be clear and photographically reproducible.

Impression must not cover text or lines. If seal impression smudges, re-seal if a sufficient area pennits, otheiwise complete a different acknowledgment fonn. • Signature of the notary public must match the signature on file with the office of the county clerk.
❖ Additional infonnation is not required but could help to ensure this acknowledgment is not misused or attached to a different document. ❖ Indicate title or type of attached document, number of pages and date. ❖ Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary). • Securely attach this document to the signed document with a staple.

Attachment 1

CERTIFIED COPY POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS: That the AMERICAN ALTERNATIVE INSURANCE CORPORATION, a corporation organized and existing by virtue of the laws of the State of Delaware ("Corporation") with offices at 555 College Road East. Princeton, N.J. 08543, has made, constituted and appointed, and by these presents, does make, constitute and appoint:

Edward C. Spector; Ethan Spector; Erin Brown; Bernadette Aleman; Donna Garcia; Marina Tapia; KO Wapato; Simone Gerhard; Adriana Valenzuela; Janina Monroe; Jennifer Ochs; Martha Barreras; Michelle Haase; Aidan Smock; Sandra Corona; Charles R Teter Ill; Sarah Campbell; and Rachel A Mullen its true and lawful Attorneys-in-Fact. at Princeton, in the State of New Jersey, each of them alone to have full power to act wrthout the other or others. to make, execute and deliver on its behalf. as Surety or Co-surety, bonds and undertakings given for any and all purposes. also to execute and deliver on rts behalf as aforesaid renewals, extensions, agreements, waivers, consents or stipulations relating to such bonds or undertakings provided, however, that no single bond or undertaking so made. executed and delivered shall obligate said Company for any portion of the penal sum thereof in excess of the sum of One Hundred Million Dollars ($100,000,000).

Such bonds and undertakings for said purposes. when duly executed by said Attorney(s)-in-Fact, shall be binding upon said Company as fully and to thesame extent as if signed by the President of said Company under its corporate seal attested by its Secretary.

This appointment is made under and by authority of a certain Resolution adopted at a meeting of the Board of Directors of said Company duly held on the 27th day of August. 1975, a copy of which appears below.

IN WITNESS WHEREOF, the AMERICAN ALTERNATIVE INSURANCE CORPORATION has caused its corporate seal to be hereunto affixed, and these presents to be signed by its duly authorized officers this 241"day of September, 2021 .

By:

Attest:

STATE OF NEW JERSEY, COUNTY OF SOMERSET
Michael G. Kerner
P,resident
,fIgnacio Rivera
Deputy General Counsel & Secretary
The foregoing instrument was acknowledged before me by means of online notarization this 24'" day of September, 2021 , by Michael G. Kerner and Ignacio Rivera, who are personally known to me.

My Commission Expires February 8, 2026

SECRETARY'S CERTIFICATE
The undersigned, Ignacio Rivera, hereby certifies:

1. That the undersigned is Secretary of American Alternative htsurance Corporation, a cotporation of the State of Delaware;

2. That the original power of attorney of which the foregoing is a copy was dnly executed on behalf of said Cotporation on the day of it.s date, and has not since been revoked, amended or modified; that the undersigned has compared the foregoing 0opy thereof ,,~th said original power of attorney, and that the same is a true and correct copy of said original power of attorney and of the "hole thereof;

3. That the original resolution of which the following is a copy was duly adopted at, and recorded in the minutes at: a regular meeting of the Board of Directon, of said Co1poration duly held on August 4, 1998, and has not since been revoked, amended or modified.

RESOLVED, that each of the following officers of this Corporation, namely, the President, the Executive Vice President, the Senior Vice Presidents, and the Vice Presidents, be, and they hereby arc, authorized, from time to time in their discretion, to appoint such agent or agents or attorney or attorneys-in-fact as deemed by them necessary or desirable for the purpose of carrying on this Corporation's business, and to empower such agent or agents or attorney or atlomeys-iu-fact to execute and deliver, in this Corporation's name and on its behalf, and under its seal or otherwise, surety bonds, sun;ty m,dertuk:ings or surety contracts' made by tl1is Cotpon1tion ,rn surety tltereon.

RESOLVED, that the signature of any authorized officer of the CoqJOration and the Co1poration's seal may be affixed by facsimile to any power of attomey and revocation of any power of attorney or ce11ificate of eitl1er given for the execution of any surety bond, sw-ety unde1taking, or surety contract, such signatm-e and seal, "1,en so used being hereby adopted by the Corporation as the original signatu1-e of such officer and the original seal of the Corporation, to be valid and binding upon the Corporation with the same force and effect as though manually affLxed.

FURTHER RESOLVED, that any prior appointments by the Corporation ofMGAs are, in all 1-espects, hereby ratified, confirmed and approved.

FURTHER RESOLVED, that the Secretary or any Assistant Secretary of this Co1poration is hereby authorized to certify and deliver lo any pe!llon to whom such ce,tification and delivery may be deemed necessary and desirable in the opinion of such Secretary or Assistant Sec1-etruy, a tme copy of the foregoing resolution.

4. The undersigned has compared the foregoing copies of said original resolutions as so 1-ecorded, and they a1e the same I.me and con-eel copies of said 01iginal resolutions as so recorded and of the \\hole thereof.

Witness the hand of the undersigned and the seal of said Corporation this 23rd day of __ N_o_v_e_m_ b_e_r __ , 20 22.

A..'WERICAN ALTERNATNE INSlJ"RANCE CORPORATION
Ignacio Rivera
Deputy General Counsel & Secret<1ry TRS-1001-1
Attachment 1

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
Co~ San Mateo
On ~OJ\il:if J'l.2:>~~re me, Shruti Bhalla, Notary Public Date "'t"\ 1 1 t:>r-J;le;e Insert Name and Title of the Officer personally appeared - --'-- -'-"----'--------- J/_....:.~_..:;._:::........:;_ I JLJL/ __________________ _ Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(,s) whose name~ is/am subscribed to the within instrument and acknowledged to me that he/s)re/th,ey executed the same jn his/~ /th~ authorized capacity(i6s), and that by his~ r/t~ ir signature(s) on the instrument the person(s), or tfie enfity upon behalf of which the person(~ acted, executed the instrument.

Place Notary Sea/ Above
I certify under PENAL TY OF PERJURY under the laws
of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and
----------------OPTIONAL----------------
Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.

Description of Attached Document _ . " .A fl_ 1\ . _ ,i Title or Type of Docu e · r+-71-+-¥--+L-1-..i..3L..::o..i.......,.=-=-- YV\JLIU .......,,:........:..---'---'Zl.)V'i) =--------------- Document Date: _ __, ..... ·--=----"'-"'- -""--'--~ -\--+-1-.\,,<---------Number of Pages: _____ _ Signer(s) Other Than Named Above:~~'-+....._,__ _________________ _ C_apacity(ies) Clai~..cUJy Si9()er(~ft /"'
Signer's Name: "-WLL ~' ~.)LI
□ Corporate Officer - Title(s): ______ _
□ Partner - □ Limited □ General
□ Individual □ Attorney in Fact
□ Trustee □ Guardian or Conservator
Other: _ _____________ _
Signer Is Representing: _________ _
Signer's Name: ____________ _
□ Corporate Officer - Title(s): ______ _
□ Partner - □ Limited □ General
□ Individual □ Attorney in Fact
□ Trustee □ Guardian or Conservator
□ Other: --------~----- Signer Is Representing: _________ _ ©2015 National Notary Association• www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827} Item #5907 Attachment 1

4864-2580-0806 v3 1

AGREEMENT FOR DEFERRAL OF PAYMENT OF ON/OFF SITE
PERMIT FEES FOR STAGE 1 OF HILLCREST SUBDIVISION
This Agreement for Deferral of Payment of On/Off Site Permit Fees for Stage 1 of Hillcrest Subdivision (“Agreement”), dated May 25, 2023 (“Effective Date”), is entered into by and between the CITY OF WATSONVILLE, a municipal corporation organized and existing under the laws of the State of California (“City”) and LANDO HILLCREST, LLC, a California corporation, (“Developer”) on the following terms and conditions. City and Developer shall be referred to collectively as “parties”.

RECITALS
WHEREAS, Developer has filed with the City certain improvement plans for Stage One of the Hillcrest Subdivision herein called "Project,” which improvement plans are designated “Stage 1 Improvement Plans For Hillcrest 511 Ohlone Parkway Watsonville, California 95076”, APNs 018-372-14 and 018-381-01, prepared by RAMSEY CIVIL ENGINEERING INC, dated May 10, 2022 and revised November 3, 2022 (the “Stage One Improvement Plans”); and WHEREAS, on August 28, 2018, the City Council of the City of Watsonville approved the development of Tract 1607 located in the City of Watsonville, consisting of the construction of 150 dwelling units on individual parcels on a 13± acre site located at 511 Ohlone Parkway, Watsonville, California (APNs 018-372-14 & 018-381-01); and WHEREAS, on July 6, 2021, the City Council of the City of Watsonville adopted Resolution No. 210-21 (CM) approving a First Amended Tentative Map for Tract No. 1607, Resolution No. 211-21 (CM) approving a Major Modification to the Special Use Permit with Design Review & Specific Development Plan for Application No. PP2017-116, and Resolution No. 212-21 (CM) approving Addendum No. 2 to the Previously Certified Final EIR (PP2016-199), (together, “Project Approvals”), reducing the number of dwelling units from 150 to 144, to allow for the construction of Project subject to Developer complying with certain conditions set forth therein; and
WHEREAS, on April 26, 2022, the City Council of the City of Watsonville approved a development agreement to allow for the construction of Project to be completed in 5 phases extending to 2026; and
WHEREAS, certain work and improvements required by Title 13 of the Watsonville Municipal Code have not been completed, to wit: the work and improvements required as conditions for approval of this Project, including, street improvements, utilities, and site landscaping improvements (including common use areas and other site features) (the “Stage One Improvements”) all to be built or completed in accordance with Stage One Improvement Plans on file with, and approved by the City Engineer; and
WHEREAS, the approval of the Stage One Improvement Plans and the Project final map are conditioned upon the execution by Developer of a Public On-Site Improvement Agreement; and
WHEREAS, on December 5, 2022, the City Council of the City of Watsonville approved DocuSign Envelope ID: C26F681F-22C6-4FC6-B98F-9F83F46D6899 DocuSign Envelope ID: CE2D624F-2F35-4342-B343-F358CDA42881 Attachment 2

4864-2580-0806 v3 2
a Public and On-site Improvement Agreement with Developer dated December 15, 2022; and WHEREAS, pursuant to Section 19 of the Public and On-site Improvement Agreement, Developer’s contractor is required to obtain an On/Offsite Permit for the proposed improvements and provide an insurance certificate meeting the requirements of insurance set forth in the Public and On-site Improvement Agreement; and
WHEREAS, the City has established a regular program of the payment of On/Offsite Permit Fees, which are identified in sections A (Engineering Services), B (Inspection) and C (Encroachment Permit Fees) of Attachment A (Fee Sheet-Improvement Agreement) of the Public and On-site Improvement Agreement relating to the Project, totaling $94,315 (“Fees”) and more specifically described in Section 2.1; and
WHEREAS, these Fees are typically due and payable at the time the applicant submits an application to the City for the On/Offsite Permit; and
WHEREAS, Developer has requested that the payment of the Fees be deferred for thirty (30) calendar days; and
WHEREAS, the City has determined that because of the unique circumstances presented, the short duration of the deferral of payment and the public benefits that would be derived from the continuance of the Project, that the Fees should be deferred in accordance with the terms and conditions set forth herein.

AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises and covenants made by the parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the parties agree as follows:

1. Recitals. The parties agree that the Recitals are true and correct and are a substantive and integral part of this Agreement and are incorporated by reference as operative provisions of this Agreement.

2. Deferral and Payment.

2.1 City’s Deferral. The City agrees that Developer may defer payment of the Fees for thirty (30) calendar days from the Effective Date of this Agreement. The Fees are broken down as follows:

A. Engineering Services
Improvement plan & CC&R’s check = $ 41,471.00
Drainage Study review = $ 1,050.00
MWELO review = $ 140.00
DocuSign Envelope ID: C26F681F-22C6-4FC6-B98F-9F83F46D6899 DocuSign Envelope ID: CE2D624F-2F35-4342-B343-F358CDA42881 Attachment 2

4864-2580-0806 v3 3
Structural review = $ 1,150.00
Addressing fee = $ 350.00
Final Map review fees = $ 3,110.00
Final Map recordation = $ 356.00
Subdivision Agreement Preparation = $ 10,461.00
Map Processing = $ 6,225.00
B. Inspection
Inspection fee (5206) = $ 29,225.00
C. Encroachment Permit Fees $ 777.00
Total Fees $94,315
The parties acknowledge that City normally requires the payment of all Fees at the time the project applicant submits an application to the City for an On/Offsite Permit. In this case, by virtue of this Agreement, the City will issue the On/Offsite Permit, provided all other requirements for the issuance of such On/Offsite Permit have been met, including insurance obligations, even though the Developer will not have paid the Fees. City shall have no obligation to issue any other permits or authorizations for any other portion of the Project until Developer has paid all other applicable fees in full, when those fees are due and payable.

2.2 Payment of Fees. The Fees shall be paid by the Developer by 5:00 p.m. on or before the thirty-first (31st) calendar day after the Effective Date of this Agreement (Monday, June 26, 2023) (“Due Date”). If the Developer fails to pay the Fees on or before the Due Date, the parties agree that the On/Off Site Permit shall be deemed null and void and may no longer be utilized by the Developer for the Project.

2.3 Developer’s Obligation to Pay Fees. Developer has the absolute obligation to pay the entire outstanding balance of the Fees. Notwithstanding the provisions of this Agreement granting Developer permission to defer payment of the Fees, such deferred payment shall not be deemed to waive all or any portion of Developer’s obligation to pay other fees or security relating to the Project including, but not limited to, those impact fees identified in Section G of Attachment A of the Public and On-site Improvement Agreement. Failure to fully pay the Fees by the Due Date in accordance with Section 2.2 shall be deemed a breach and default of the Agreement.

2.4 Deferral is not Payment of Public Funds. The parties, having each researched California Prevailing Wage Law (California Labor Code Section 1720 et seq.) and agree that the deferral of the payment of the Fees for thirty (30) days is not a public works project subject to the prevailing wage requirements. The deferral is instead a market transaction providing the Developer additional time to pay the required Fees. Notwithstanding this understanding, Developer acknowledges that if the Department of Industrial Relations determines that the deferral of Fees for DocuSign Envelope ID: C26F681F-22C6-4FC6-B98F-9F83F46D6899 DocuSign Envelope ID: CE2D624F-2F35-4342-B343-F358CDA42881 Attachment 2

4864-2580-0806 v3 4
thirty (30) days constitutes the payment of public funds for the Project, and that the deferral of the Fees or the Project is not otherwise exempt from the payment of prevailing wages under Labor Code Section 1720 et seq., then the Developer shall be fully responsible for payment of prevailing wages and overtime and holiday wages determined by the Department of Industrial Relations under Section 1720 et seq., of the California Labor Code for all work performed on the Project. Developer reserves the right to contest any such determination or ruling.

3. General Indemnity.

3.1 General Indemnity. Except as to the sole negligence, active negligence or willful misconduct of the City, Developer expressly agrees to, and shall, indemnify, defend, release, and hold the City, and its respective officials, officers, employees, agents, and contractors harmless from and against any action, liability, loss, damage, entry, judgment, order, and lien, which arises out of, or are in any way related to, any act or omission of Developer, or its officers, directors, employees, agents, or contractors, connected with the performance under this Agreement, the construction, use, or operation of the Project, notwithstanding that the City may have benefited therefrom, or any challenge to this Agreement. This Section shall apply to any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of Developer’s officers, directors, employees, agents and contractors. The City shall not be responsible for any acts, errors or omissions of any person or entity except the City and its officers, agents, servants, employees or contractors. The Parties expressly agree that the obligations of Developer under this Section shall survive the expiration or early termination of the Agreement.

3.2 Prevailing Wage Indemnification and Waiver of Actions. Developer, for itself and its contractors, hereby expressly agrees that City has satisfied its obligations under the California prevailing wage laws to identify projects as being subject to the prevailing wage laws and any other obligations imposed upon the City under Labor Code Sections 1726 and/or 1781 that are owed to or may be actionable by Developer and its contractors. Furthermore, Developer, for itself and its contractors hereby expressly waives any right of action against the City created under Labor Code Sections 1726 and/or 1781, whether known, or unknown, foreseen or unforeseen relating to the Project and/or any public improvement. Developer hereby agrees and covenants to require this express waiver in all construction contracts undertaken for the development of the Project. Further, Developer expressly agrees to, and shall, indemnify, defend, release, and hold the City, and its respective officials, officers, employees, agents, and contractors harmless from and against any Action, liability, loss, damage, entry, judgment, order, and lien, which arises out of, or are in any way related to or imposed upon the City under Labor Code Sections 1720 et seq. that the Project and/or any public improvement is subject to the prevailing wage laws and that payment of prevailing wages are owed to or may be actionable by Developer and its contractors and/or sub-contractors. The Parties expressly agree that the obligations of Developer under this Section shall survive the expiration or early termination of the Agreement.

The City shall cooperate with Developer in any claim raised against either that is within the scope of this indemnification. The Developer shall, at its expense, hire counsel to defend the City and Developer.

4. Default And Remedies. Either party’s failure or unreasonable delay to perform any term or provision of this Agreement constitutes a Default of this Agreement. In the event of a Default, the injured party shall give written “Notice of Default” to the defaulting party, specifying the DocuSign Envelope ID: C26F681F-22C6-4FC6-B98F-9F83F46D6899 DocuSign Envelope ID: CE2D624F-2F35-4342-B343-F358CDA42881 Attachment 2

4864-2580-0806 v3 5
Default. Delay in giving such notice shall not constitute a waiver of the Default. If the defaulting party fails to cure the Default within five (5) calendar days after receipt of a notice specifying the Default, the defaulting party fails to commence to cure the Default, then the defaulting party shall be liable to the injured party for any and all damages caused by such Default, unless otherwise provided for by this Agreement.

4.1.1 If the Developer fails to pay the Fees on or before the Due Date, the City shall not be obligated to provide Notice of Default in the manner described above and the On/Off Site Permit shall be deemed null and void.

4.1.2 The parties agree that any Default of Developer under this Agreement shall also be considered a breach and default of this Agreement and the City may, in its sole discretion, proceed with providing the Developer Notice of Breach and Default pursuant to sections 23-25 of the Public and On-site Improvement Agreement with Developer dated December 15, 2022.

4.2 Termination. This Agreement may be terminated at any time for any reason by either party upon five (5) calendar days’ written notice. If this Agreement is terminated prior to the Due Date for payment identified in Section 2.2, all Fees shall be immediately due and payable to the City upon termination.

4.2 No Waiver. Failure to insist on any one occasion upon strict compliance with any of the terms, covenants or conditions hereof shall not be deemed a waiver of such term, covenant or condition, nor shall any waiver or relinquishment of any rights or powers hereunder at any one time or more times be deemed a waiver or relinquishment of such other right or power at any other time or times. The waiver of any terms, covenants or conditions hereof shall be null and void unless in writing and approved in accordance with terms hereof.

4.3 Legal Actions. In addition to any other rights and remedies any party may institute a legal action to require the cure of any default and to recover damages for any default, or to obtain any other remedy consistent with the purpose of this Agreement. The following provisions shall apply to any such legal action:

4.3.1 Jurisdiction and Venue. Legal actions must be instituted and maintained in the Superior Court of the County of Santa Cruz, State of California.

4.3.2 Applicable Law. The laws of the State of California shall govern the interpretation and enforcement of this Agreement.

4.3.3 Attorneys’ Fees. In the event either party commences an Action against the other party which arises out of a Default of, breach of, failure to perform, or that is otherwise related to, this Agreement, then the Prevailing Party in the action shall be entitled to recover its litigation expenses from the other party in addition to whatever relief to which the prevailing party may be entitled. For the purpose of this section, “Prevailing Party” shall have the meaning ascribed in §1032(a) (4) of the California Code of Civil Procedure.

4.4 Rights and Remedies are Cumulative. The rights and remedies of the parties are cumulative, and the exercise by a party of one or more of its rights or remedies shall not preclude DocuSign Envelope ID: C26F681F-22C6-4FC6-B98F-9F83F46D6899 DocuSign Envelope ID: CE2D624F-2F35-4342-B343-F358CDA42881 Attachment 2