FBO Lease: Monterey Bay Aviation and City of Watsonville September, 2014
connection with the Transfer (Transferee Rent), after deducting:
(I) The Rent payable by Tenant under this Lease (excluding the Transfer Premium) for the Subject Space (Tenant Rent);
(2) Reasonable leasing commissions paid by Tenant;
(3) Other reasonable out-of-pocket costs paid by Tenant (including attorney fees, advertising costs, and expenses of readying the Subject Space for occupancy by Transferee); and ( 4) Any consideration paid to Transferee or any third party to induce Transferee to consummate the Transfer.
(i) Tenant may allow, and charge Driscoll's for, storage of an aircraft in the hangar portion of the building described in section 8 (a). Tenant may sublease, to subtenants conducting airpo1t related businesses, the five smallest of the six office spaces, as shown on the plans and improvements described in section 8 (a). Those transfers shall be exempt from Section 24 (h), 25 and Section 26 below. City will allow a reasonable (determined by City) lease assignment to a lender supplying funds for construction of the improvements described in Section 8(a).
25.RIGHT, OF, FIRST REFUSAL.
Despite any other provision of (a) through (h) of Section 24, City has, commencing with the Option Term, the right, by written notice to Tenant (First Refusal Notice) within thirty (30) days after receiving any Transfer Notice, to acquire dominion over the Subject Space by taking an assignment or a sublease of the Subject Space from Tenant. A timely First Refusal Notice creates an assignment or a sublease for the Subject Space for the same terms as the proposed Transfer, effective as of the date specified in the Transfer Notice. If City declines or fails timely to deliver a First Refusal Notice, City shall have no further right under this Section to the Subject Space unless it becomes available again after Transfer by Tenant.
26.0PTION TO TAKE ASSIGNMENT OR SUBLEASE.
(a) Despite any other provision of Section 25, City has, commencing with the Option Tenn, the option, by written notice to Tenant (Option Notice) within thi1ty (30) days after receiving a Qualified Transfer Notice, to acquire dominion over the Subject Space by taking an assignment or a sublease of the Subject Space from Tenant. Qualified Transfer Notice means any Transfer Notice with a term ofrent or Path: q:\council\2014\101414\201410 07 ufs lease final.docx Attachment 1
FBO Lease: Monterey Bay Aviation and City of Watsonville September, 2014
any other consideration paid by Transferee that exceeds one hundred and five percent (105%) of the Fair Market Rental Value forthe Subject Space where the Fair Market Rental Value of the Subject Space shall have been determined, within the six-month (6-month) period prior to the issuance of an Option Notice, under the provisions of subparagraph (b ).
(b) The Fair Market Rental Value of a proposed Subject Space shall be determined by a licensed real estate appraiser who has been active in the appraisal of similar properties over the five-year (5-year) period ending on the date the Subject Space is appraised. ( c) Any Option Notice must include the Fair Market Rental Value of the Subject Space. The Fair Market Rental Value stated in the Option Notice shall have been determined, within the six-month (6- month) period prior to the issuance of the Option Notice, under the provisions of subparagraph (b ). ( d) A timely Option Notice creates an assignment or a sublease for the Subject Space for the same te1m as the proposed Transfer, except that rent and other consideration paid by City to Tenant shall be one hundred and five percent 105% of the Fair Market Rental Value, as stated in the Option Notice, for the Subject Space and shall be effective as of the date specified in the Qualified Transfer Notice. If City declines or fails timely to deliver an Option Notice, City shall have no further right under this Paragraph to the Subject Space unless it becomes available again after Transfer by Tenant. (e) City shall not unreasonably exercise the option described in this section, but City may neve11heless condition the exercise of this option upon the factors listed in subparagraphs (f)(l )-(7) of section 26.
27. SIGNS, POSTERS, BUILDINGS AND TOWERS.
No advertising signs, posters or similar devices shall be erected, displayed or maintained in, on, about or above the Premises or the structures thereon without a sign pe1mit and the wiitten approval of the City Manager. No towers or buildings erected on the Premises shall exceed the height limit fixed by any City zoning ordinance or regulations of the Airport or Federal Aviation Administration. Tenant in its operations shall not unreasonably interfere with the prope11y, interests, operations or activities of the City orofothertenants of the City. Tenant shall not erect any sign, poster or similar devices on, about or above the Premises of a political nature or which endorses a city, state or federal candidate who is running for elected office.
Path: q:\council\2014\101414\2014 IO 07 ufs lease final.docx Attachment 1
FBO Lease: Monterey Bay Aviation and City of Watsonville September, 2014
28. WAIVER OF DAMAGES AND INDEMNIFICATION.
City shall not be liable to Tenant for any injury or damage that may result to any person or property by or from any cause whatsoever, except as results from acts ofnegligence on the pmt of City, its agents, servants, employees or invitees. Tenant agrees to indemnify, defend and hold City harmless against, any and all claims or liability for any death of or injury to any person or damage to any prope1ty, whatsoever, occun-ing in, on or about the Premises or any part thereof, or occurring in, on or about any other areas of facilities of the building, including without limiting the generality of the foregoing, walkway( s ), driveway( s ), parking area( s ), stai1way, or passageways if such death, in jury or damage shall be caused in part or in whole, directly or indirectly, by the act, negligence or fault of, or omission of any duty, with respect to the same or by Tenant, its agents, servants, employees or invites.
29. DEFAULT AND BREACH.
The occurrence of any of the following shall constitute a material default and breach of this Lease by Tenant:
(a) Any failure by Tenant to pay the Rent or make any other payment required to be made by Tenant under this Lease (when that failure continues for Ten (I 0) days after written notice of the failure is given by City to Tenant).
(b) The abandonment or vacating of the Premises by Tenant (the absence of Tenant from or the failure by Tenant to conduct business on the Premises for a period in excess of Ten (10) consecutive days shall constitute an abandonment or vacating for purposes of this Lease). Temporary cessation of retail operations for normal vacations by employees is not on abandonment or vacating. (c) A failure by Tenant to observe and perform any other provision of this Lease to be observed or performed by Tenant, when that failure continues for Ten (10) days after written notice of Tenant's failure is given by City to Tenant; provided, however, that ifthe nature of that default is such that it cannot reasonably be cured within Ten (10) days, Tenant shall not be deemed to be in default ifTenant commences that cure within the Ten (10) day period and thereafter diligently prosecutes it to completion. ( d) The making by Tenant of any general assignment for the benefit of creditors; the filing by or against Tenant of a petition to have Tenant adjudged a bankmpt or of a petition for reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Tenant, it is dismissed within Sixty ( 60) days); the appointment of a trustee or receiver to take possession of Path: q:\council\2014\101414\2014 10 07 ufs lease final.docx Attachment 1
FBO Lease: Monterey Bay Aviation and City of Watsonville September, 2014
substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, when possession is not restored to Tenant within Thirty (30) days; or the attachment, execution, or other judicial seizure of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, when that seizure is not discharged within Thilty (30) days.
29.1 TERMINATION OF LEASE AND RECOVERY OF DAMAGES.
In the event of any default by Tenant under this Lease, in addition to any other remedies available to City at law or in equity, City shall have the right to terminate this Lease and all rights of Tenant hereunder by giving wtitten notice of the termination. No act of City shall be construed as terminating this Lease except written notice given by City to Tenant advising Tenant that City elects to terminate this Lease. If City elects to terminate this Lease, City may recover from Tenant:
(a) The worth at the time of award of any unpaid rent that had been earned at the time of te1mination of the Lease;
(b) The worth at the time of award of the amount by which the unpaid rent that would have been earned after termination of the Lease until the time of award exceeds the amount of rental loss that Tenant proves could have been reasonably avoided;
( c) The wo1th at the time of award of the amount by which the unpaid rent for the balance of the term of this Lease after the tilne of award exceeds the amount of rental loss that Tenant proves could be reasonably avoided; and
(d) Any other amount necessary to compensate City for all detriment proximately caused by Tenant's failure to perform its obligations under this Lease.
The te1m "rent" as used in this section shall mean the Fixed Rent, and all other sums required to be paid by Tenant pursuant to the terms of this Lease. As used in subsections (a) and (b) above, the "worth at the tilne of award" is computed by allowing interest atthe rate of one and one-half percent (1.5%) per annum.
As used in subsection ( c ), the ''wo1th at the time of award" is computed by discounting that amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1 %).
29.2 CITY'S RIGHT TO CONTINUE LEASE IN EFFECT.
(a) If Tenant breaches this Lease and abandons the Premises before the natural expiration of the term of this Lease, City may continue this Lease in effect by not terminating Tenant's right to possession Path: q:\council\2014\101414\2014 10 07 ufs lease final.docx Attachment 1
FBO Lease: Monterey Bay Aviation and City of Watsonville September, 2014
Page20 of32
of the Premises, in which event City shall be entitled to enforce all its rights and remedies under this Lease, including the right to recover the rent specified in this Lease as it becomes due under this Lease.
For as long as City does not te1minate this Lease, Tenant shall have the right to assign or sublease the Premises with the City's prior written consent, which consent shall not be unreasonably withheld. (b) No act of City, including but not limited to City's ent1y on the Premises, efforts to re-let the Premises, or maintenance of the Premises, shall be construed as an election to terminate this Lease unless a written notice of that intention is given to Tenant or unless the termination of this Lease is decreed by a co mt of competent jurisdiction.
29.3 CITY'S RIGHT TO RELET.
If Tenant breaches this Lease, City may enter on and rel et the Premises or any part of the Premises to a third party or third patties for any term, at any rental, and on any other terms and conditions that City, in its sole discretion, may deem advisable and shall have the right to make alterations and repairs to the Premises. Tenant shall be liable for all of City's reasonable costs in reletting including, but not limited to, reasonable remodeling costs required for the reletting. If City relets the Premises, Tenant shall pay all rent due under and at the times specified in this Lease, less any amount or amounts actually received by City from the reletting.
29.4 CITY'S RIGHT TO CURE TENANT DEFAULTS.
If Tenant breaches or fails to pe1form any of the covenants or provisions of this Lease, City may, but shall not be required to, cure Tenant's breach. Any sum expended by City, with the then maximum legal rate of interest, shall be reimbursed by Tenant to City with the next due rent payment under this Lease.
29.5 CUMULATIVE REMEDIES.
The remedies granted to City in this Section 29 shall not be exclusive but shall be cumulative and in addition to all remedies now or hereafter allowed by law or provided in this Lease.
29.6 WAIVER OF BREACH.
The waiver by City of any breach by Tenant shall not constitute a continuing waiver or a waiver ofany subsequent breach by Tenant either of the same or another provision of this Lease.
Path: q:\council\2014\101414\2014 10 07 ufs lease final.docx Attachment 1
FBO Lease: Monterey Bay Aviation and City of Watsonville September, 2014
30. DISPUTE RESOLUTION.
(a) Mediation. The Parties agree to mediate any dispute or claim arising between them out of this Lease before resulting to arbitration or comt action. Mediation shall be conducted by an attorney or retired judge with experience in municipal/business law, either an individual or recognized mediation service in or around Santa Cruz County, for example, JAMS (Judicial Arbitration and Mediation Service). If the Patties cannot agree on a mediator, each party shall nominate one mediator, and the two nominee mediators shall themselves choose a third independent mediator who shall serve as the sole mediator. The mediator fees shall be divided equally between/among the parties involved. If any party commences an arbitration without first attempting to resolve the matter through mediation, or refuses to mediate in good faith after a request has been made, then that party shall not be entitled to recover attorneys' fees, even iffees would othe1wise have been available to that party in any such arbitration. (b) Arbitration. The Parties agree that any dispute or claim, excepting claims by or for nonpayment ofrent, arising between them out of this Lease, which is not settled through mediation, shall be decided by neutral, binding arbitration. The arbitrator shall be a retired judge or an attorney with experience in municipal/business law, either an individual or recognized arbitration service in or around Santa Cruz County, for example, JAMS (Judicial Arbitration and Mediation Service). If the Parties cannot agree on an arbitrator, each party shall nominate one arbitrator, and the two nominee arbitrators shall themselves choose a third independent arbitrator who shall serve as the sole arbitrator. The arbitration shall be conducted in accordance with the California Arbitration Act, Code of Civil Procedure § 1280-1294.2, or any successor statutes. The Patties shall have the right to discovery in accordance with California Code of Civil Procedure§ 1283.05. Judgment upon the award of arbitrator may be entered in any court having jurisdiction. The arbitrator shall have the power to award attorneys' fees and costs.
31. INSURANCE.
(a) During the Initial Term, and any extension thereof, Tenant, at Tenant's sole expense, shall secure and maintain in force such policies ofinsurance as will protect it from claims for damages or inju1y resulting from bodily injury, including death, and for the loss or damage to prope1ty of others which may arise from operations of this Lease. Such insurance shall contain statements that: (i) these policies shall also apply to City, as an Additional Named Insured; (ii) the insurance afforded by these policies applies severally as to each insured, except that the inclusion of more than one insured shall not operate to increase Path: q:\council\2014\101414\201410 07 ufs lease final.docx Attachment 1
FBO Lease: Monterey Bay Aviation and City of Watsonville September, 2014
the limit of the company's liability, and the inclusion hereunder ofany person or organization as an additional insured shall not affect any right which such person or organization would have as a claimant if not so included; (iii) the insurance shall be p1imaty insurance over any other insurance carried by City, which other insurance shall be considered excess only; (iv) the above policies specifically include coverage indemnifying City as set forth in this Lease; (v) the policies may not be cancelled, nor the coverage reduced until thirty (30) days after a written notice of such cancellation or reduction in coverage is delivered to City at the address contained herein; (vi) the insurance companies named herein waive any and all rights of subrogation against City. Such liability insurance shall be written with limits of at least Three Million Dollars ($3,000,000.00) combined single limits, and shall be written by companies acceptable to City. The limit of liability insurance coverage shall be adjusted commensurate with inflation and other liability factors upon adoption of resolution of the City Council of City. Ce1tificates of Insurance evidencing the above obligations shall be delivered to City on orp1iorto commencement of the Te1m. (b) Throughout the Initial Term, or any extension hereunder, Tenant, atTenanfs cost, shall cause all improvements on the Premises to be insured against the pe1ils of Fire and Extended Coverage. Such Insurance shall insure on a Blanket basis the value of the Premises and all improvements installed therein either by City or Tenant. Such insurance shall be written on a full replacement cost basis. If City requests, Tenant shall immediately include the holder of any mortgage or deed of trust on the fee as a loss payee to the extent of such holder's security interest. Such insurance shall contain statements that: (i) these policies shall apply to City, as an Additional Named Insured; (ii) the insurance shall be primmy insurance over any other insurance carrier by City, which other insurance shall be considered excess only; (iii) the policies may not be cancelled nor the coverage reduced until thi1ty (30) days after a written notice of such cancellation or reduction in coverage is delivered to City at the address contained herein; (iv) the insurance companies named herein waive any and all rights of subrogation against City. City, at Tenant's cost, shall cooperate fully with Tenant to maximize any recovery following an insured casualty. All policies of fire and extended coverage or other casualty insurance required by this provision shall provide that proceeds thereunder shall be paid to City and Tenant as their interests may appear. (c) All policies required to be maintained by Tenant pursuant to the terms of this Lease shall be issued by companies authorized to do business in the State of California with a financial rating of"B+" or greater as rated in the most recent edition of Best Insurance Reports. Tenant shall pay premiums therefore and shall deliver annually to City Ce1tificates ofinsurance that such policies are in effect and Path: q:\council\2014\101414\2014 10 07 ufs lease final.docx Attachment 1
FBO Lease: Monterey Bay Aviation and City of Watsonville September, 2014
Page23 of32
endorsements. If Tenant fails or refoses to procure or maintain the insurance coverage required hereunder, or fails or refuses to furnish City with proof that coverage has been procured and is in full force and paid for, City shall have the right, at City's election and without notice to Tenant, but without any obligation to do so, to procure and maintain such coverage. Tenant shall reimburse City on demand for any premiums City so pays in connection with such procurement Tenant shall not conduct any welding or open flame operations on the Premises, unless the building thereon conforms to the Uniform Building Code and Fire Code.
32. WAIVER OF SUBROGATION.
City hereby releases Tenant, and Tenant hereby releases City, from any and all claims or demands for damages, loss, expense or injury to the Premises, or to the improvements, fixtures and equipment, or personal property or other property of either City or Tenant in, about or upon the Premises or the Airport as the case may be, which is caused by or results from perils, events or happenings which are the subject of insurance carried by the respective Parties and in force at the time of any such loss.
33. LITIGATION EXPENSES.
If either party shall bring an action (which includes arbitration but does not include mediation) against the other by reason of the breach of any covenant, watranty or condition hereof, or otherwise arising out of this Lease, whether for declaratory or other relief, the prevailing party in such suit shall be entitled to its costs of suit and reasonable attorney fees, which shall be payable whether or not such action is prosecuted to judgment. "Prevailing Patiy" within the meaning of this paragraph shall include without limitation a party who brings an action against the other after the other's breach or default, if such action is dismissed upon the other's payment of the sums allegedly due or performance of the covenant's allegedly breached, or ifthe plaintiff obtains substantially the relief sought by it in the action.
34. SURRENDER OF PREMISES.
Tenant agrees to surrender the Premises at the te1mination of the tenancy herein created in the same condition as the Premises were in at the beginning of the tenancy, reasonable use and wear thereof and damage by act of God or the elements excepted and except that the premises returned will include the structure and improvements described in Section 8. The voluntary or other surrender of this Lease by Path: q:\council\2014\101414\2014 10 07 ufs lease final.docx Attachment 1
FBO Lease: Monterey Bay Aviation and City of Watsonville September, 2014
Page24of32
Tenant or a mutual cancellation thereof shall not work a merger, and shall, at the option of City, terminate all or any existing subleases or sub-tenancies, or may, at the option of City, operate as an assignment to City of any or all such sublease or sub-tenancies.
35. WAIVER.
Any waiver, expressed or implied, by either patty of any breach by the other party of any agreement, te1m or condition of this Lease shall not be, or be constmed to be, a waiver of any subsequent breach of a like or other agreement, te1m of condition hereof; and the acceptance of rent hereunder shall not be, or be construed to be, a waiver of any breach of any agreement, te1m or condition of this Lease, except as to the payment of rent so accepted. The 1ights and remedies of either party under this Lease shall be cumulative and in addition to any and all other rights and remedies which either patty has or may have.
36. QUIET ENJOYMENT.
City covenants and warrants that upon Tenant's paying the rent and obse1ving and perfmming all of the terms, covenants, and conditions on Tenant's part to be observed and perfo1med hereunder, Tenant shall and may peaceably and quietly enjoy the Premises hereby demised, subject neve1theless to the te1ms and conditions of this Lease.
37. NOTICES.
All notices, consents, waivers or other communications which this Lease requires or permits either patty to give to the other shall be in writing and shall be served personally and fmwarded by registered or certified mail, retum receipt requested, made upon or addressed to the respective Patties as follows:
To City:
City Clerk
City of Watsonville
275 Main Street, Suite 400
Watsonville, California 95076
To Tenant:
Terrence M. McKenna, Chief Executive Officer
Monterey Bay Aviation, Inc.
120 Aviation Way
Watsonville, California, 95076
or such other address as may be contained in a notice from either party to the other given pursuant to this paragraph. Notice by registered or ce1tified mail shall be deemed to be given fo1ty-eight ( 48) hours from the time of postmarl<lng if mailed within the United States (excluding Alaska and Hawaii). Rental payments Path: q:\council\2014\101414\201410 07 ufs lease final.docx Attachment 1
FBO Lease: Monterey Bay Aviation and City of Watsonville September, 2014
Page25 of32
required by this Lease shall be delivered to City at City's Finance Depmtment, at 250 Main Street, Watsonville.
38.TENANT TO ASSUME ALL UNKNOWN EXPENSES.
Notwithstanding the existence of a provision in this Lease, Tenant shall assume, pay and be obligated for any and all costs and expenses toward the operation, protection, maintenance of the Premises, known or unknown, expressed or unexpressed. It is the intention of the Parties to this Lease that it be a triple net lease to City.
39. CLOSURE OF AIRPORT IN AN EMERGENCY.
During any period when the Airp01t shall be closed or civil aircraft, grounded by any lawful authority restricting the use of the Airport or civil aircraft in such a manner as to interfere substantially with the use of the Premises by Tenant, the rent payable under this Lease shall abate, and the period of such closure at the option of Tenant shall be added to the tenn of this Lease. During the time of warornational emergency, City shall have the right to Lease or lend the landing area of the Airport, or any pait thereof, to the United States Government or state government for military or naval use, and if such lease or lending is executed and the use thereunder inte1feres substantially with the use of the Premises by Tenant, the rent shall abate, and this Lease shall be suspended or terminated.
40. MAINTENANCE OF CITY OWNED FACILITIES.
City shall maintain and keep in repair the landing area of the Airp01t and all publicly owned facilities at the Airport which Tenant shall have the right to use. City shall provide Tenant with reasonable access of City's choosing over a roadway from the Premises to the principal street presently situated on the Airport.
41. RIGHT OF CITY TO ENTER FOR INSPECTION.
City shall have the right to enter upon the Premises at all reasonable times during the Initial Term and any extension thereof, of this Lease for the purpose of making any inspection it may deem expedient to the proper enforcement of this Lease. City may enter upon the Premises for the purpose of exercising any or all of the foregoing rights and the rights described in provision without being deemed guilty of an eviction or disturbance of Tenant's use or possession and without being liable in any manner to Tenant.
Path: q:\council\2014\101414\201410 07 ufs lease final.docx Attachment 1
FBO Lease: Monterey Bay Aviation and City of Watsonville September, 2014
Page26 of32
42. OTHER OPERATIONS.
It is understood that the Fixed Base Operation(s) authorized at the Airport by this Lease are not given to Tenant exclusively but may be given to any other Tenant at the Airpmt at the sole discretion of the City.
43. CONDEMNATION.
If the whole or any substantial patt of the Premises shall be taken by any paramount public authority under the power of eminent domain then the term of this Lease shall cease as to the part so taken from the day the possession of that patt shall be taken for any public purpose, and from that day Tenant shall have the right either to cancel this Lease or to continue in the possession of the remainder of the Premises under the term herein provided, except that the square foot rental shall be reduced in prop01tion to the amount of the Premises taken. Damages awarded for such taking shall be appo1tioned between City and Tenant in a rntio relating to the number of years expired and remaining in the Term between City and Tenant respectively; provided, however, that City shall not be entitled to any p01tion of the award made for loss of business installation or improvements belonging to Tenant.
44. FENCING AND CLOSURE OF GATES.
Tenant shall install at its sole expense a chain link fence at least three (3) foot high, together with gates therein, in order to maintain security and to prevent vehicles fium entering the taxi and nmway areas of the airport. Tenant shall close ai1d lock all gates admitting access to the Premises during the non-business hours of Tenant's business operation.
45. NONDISCRIMINATION.
(a) Tenant hereby covenants that Tenant in its use of the Premises and any and all structures, buildings and improvement located thereon shall conduct the Fixed Base Operation(s) or any other activity hereafter authorized by City on the Premises on a non-exclusive and nondiscriminatory basis in all respects with regard to any person, firm or group of persons. Tenant shall not act in any manner prohibited by Pait 15 of the Federal Aviation Regulations and fluther agrees to be nondiscriminatory also with respect to price or cost of services of goods and in every other fashion. (b) The Tenant, for itself, its heirs, personal representatives, successors in interest, and assigns, as a patt of the consideration for this Lease, does hereby covenant and agree as a covenant Path: q:\council\2014\101414\2014 10 07 ufs lease final.docx Attachment 1
FBO Lease: Monterey Bay Aviation and City of Watsonville September, 2014
running with the land that If facilities are constmcted, maintained, or otherwise operated on the Premises for a purpose for which a Department of Transportation (DOT) program or activity is extended or for another purpose involving the provision of similar services or benefits, the Tenant shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Pait 21, Nondiscrimination in Federally-Assisted Programs of the Depaitment ofTranspo1tation-Effectuation of Title VI of the Civil Rights Act of 1964, and as such Regulations may be amended. ( c) The Tenant for itself, its personal representatives, successors in interest, and assigns, as a pait of the consideration hereof, does hereby fmther covenant and agree as a covenant running with the land that:
(a) no person on the grounds ofrace, color or national origin shall be excluded from paiticipation in, denied the benefits of, or be othe1wise subjected to discrimination in the use of facilities; (b) that in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or othe1wise be subject to discrimination; ( c) that the Tenant shall use the Premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Pait 21, Nondiscrimination in Federally-Assisted Programs of the Depaitment of Transp01tation-Effectuation of Title VI of the Civil Rights Act of 1964, and as such Regulations may be amended.
( d) Tenant shall fumish its accommodations and/or services on a fair, equal and not uajustly discriminatory basis to all users thereof and it shall charge fair, reasonable and not unjustly discriminatory prices for each unit or service; provided, that the Tenant may be allowed to make reasonable and nondiscriminatory discounts, rebates or other similar type of price reductions to volume purchasers.
Tenant shall inse1tthe provisions of this paragraph in any lease agreement or contract by which Tenant grants a right or privilege to any person, finn or corporation to render accommodations and/or services to the public on the Premises.
REMEDY FOR DISCRIMINATION.
(e) Non-compliance with paragraph 49 shall constitute a material breach thereof and in the event of such non-compliance. City shall have the right to te1minate this Lease ai1d the estate hereby created without liability therefore or at the election of the City or the United States either or both Govemments shall have the Path: q:\council\2014\101414\2014 10 07 ufs lease final.docx Attachment 1
FBO Lease: Monterey Bay Aviation and City of Watsonville September, 2014
Page28 of32
rightto judicially enforce paragraph 49. City shall have the right to take such action against the Tenant as the United States Government may direct or request to enforce the terms of the preceding paragraph on behalf of the United States Government or on behalf of any of its citizen or the City itself In the event of breach of any of the nondiscrimination covenants identified in the preceding paragraph, City shall have the right to tenninate this Lease and to reenter and repossess the Premises and the facilities thereon, and hold the same as if this Lease had never been made or issued. This provision does not become effective until the proceduresof49CFRPart 21 are followed and completed including expiration ofappeal rights.
46. AFFIRMATIVE ACTION.
Tenant assures that it will unde1take an affirmative action program as required by 14 CFR Pait 152, SubpaitE, to insure that no person shall on the grounds of race, creed, color, national origin, or sex be excluded from participating in any employment activities covered in 14 CFR Pait 152, Subpart E. Tenant assures that no person shall be excluded on these grounds from pmticipating in or receiving the services or benefits of any pmgram or activity covered by such subpait. Tenant assures that it will require that its covered sub organizations provide assurances to the Tenant that they similarly will unde1take affinnative action programs and that they will require assurances from their sub organizations, as required by 14 CFR Pait 152, Subpmt E, to the same effect.
47. AIRPORT DEVELOPMENT.
City reserves the right to fi.nther develop or improve the landing area of the Airp01t as it sees fit, regardless of the desires or view of the Tenant and without inte1ference or hindrance.
48. RESERVATION OF RIGHT.
City reserves the right, but shall not be obligated to Tenant to maintain and keep in repair the landing area of the Airprnt and all publicly-owned facilities of the Ai1po1t, together with the right to direct m1d control all activities of the Tenant in this regm"CI.
49. SUBORDINATION TO FUTURE AGREEMENTS.
This Lease shall be subordinate to the provisions and requirements of any existing or future agreement between the City and the United States, relative to the development, operation or maintenance of the Airprnt.
Path: q:\council\2014\101414\2014 10 07 ufs lease final.docx Attachment 1
FBO Lease: Monterey Bay Aviation and City of Watsonville September, 2014
Page29of32
50. NOTICE TO FEDERAL AVIATION ADMINISTRATION.
Tenant shall comply with the notification and review requirements covered in Pait 77 of the Federal Aviation Regulations in the event of future construction of a building planned for the Premises, or of any planned modification or alteration of any present or future building or structure situated on the Premises.
51. NON-EXCLUSIVE RIGHT.
It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act.
52. BINDING EFFECT.
This Lease shall be binding upon and inure to the benefit of City and City's successors and assigns. This Lease shall be binding upon and inure to the benefit of Tenant and Tenant's heirs, legal representatives, successors and pennitted assigns.
53. EXHIBITS.
All Exhibits attached to this Lease are made a part of this Lease and incorporated by this reference to this Lease.
54. ENTIRE AGREEMENT.
This Lease sets fmih all the covenants, promises, assurances, agreements, representations, conditions, warranties, statements and understandings (collectively, the "Representations") between City and Tenant concerning the Premises, and there are no other Representations, either oral or written, between them. This Lease supersedes and revokes all previous negotiations, arrangements, letters of intent, offers to lease, reservations of space, lease proposals, brochures, representations and infonnation conveyed, whether oral or in writing, between the Parties or their respective representatives or any other person purporting to represent City or Tenant. Tenant acknowledges that it has not been induced to enter into this Lease by any Representations, it has not relied on any such Representations, no such Representations shall be used in the interpretation or construction of this Lease and City shall have no liability for any consequences arising as a result of any such Representations. No subsequent alteration, Path: q:\council\2014\101414\201410 07 ufs lease final.docx Attachment 1
FBO Lease: Monterey Bay Aviation and City of Watsonville September, 2014
amendment, change or addition to this Lease shall be binding upon City or Tenant unless in writing signed by both Parties.
55. COUNTERPARTS.
This Lease may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Confinnation of execution by telefax of a signature page shall be binding upon any party so con finning.
56. NO ACCORD.
No payment by Tenant or receipt by City of a lesser amount than any installment or payment of Rent due shall be deemed to be other than on account of the amount due, and no endorsement or statement on any check or any letter accompanying any check or payment of Rent shall be considered an accord and satisfaction, and City may accept such check or payment without prejudice to City's right to recover the balance of such installment or payment of Rent or pursue any other remedies available to City. No receipt of money by City from Tenant after the termination of this Lease or Tenant's right to possession of the Premises shall reinstate, continue or extend the Term, or extension thereof City may allocate payments received from Tenant to outstanding account balances of Tenant under this Lease in the manner detennined by City and City shall not be bound by any allocations of such payments made by Tenant by notation or endorsement on checks or othe1wise.
57. BROKERS.
Both City and Tenant represent to each other that it has had no dealings with any real estate broker or agent in connection with the negotiation of this Lease and that they know of no real estate broker or agent who is entitled to a commission or finder's fee or equivalent in connection with this Lease. Each party agrees to indemnify, defend and hold the other pmty harmless from and against any and all claims, demands, liabilities, actions, costs and expenses (including reasonable attorneys' fees) for any other brokerage commissions, finder's fees or equivalent compensation arising out of this transaction resulting from such indemnifying party's acts. The terms of this Section 58 shall survive the expiration or earlier termination of this Lease.
Path: q:\council\2014\101414\2014 10 07 ufs lease final.docx Attachment 1
FBO Lease: Monterey Bay Aviation and City of Watsonville September, 2014
58. NO WAIVER.
The receipt by City of any Rent with knowledge of the breach of any covenant of this Lease by Tenant shall not be deemed a waiver of such breach or any subsequent breach of this Lease by Tenant and no provision of this Lease and no breach of any provision of this Lease shall be deemed to have been waived by City unless such waiver be in writing signed by City.
59. CAPTIONS.
Section captions in this Lease are inse1ted only as a matter of convenience and in no way define, limit, construe or describe the scope or intent of such Sections.
60. APPLICABLE LAW.
This Lease shall be construed in accordance with the laws of the State ofCalifomia.
61. TIME.
Time is of the essence of this Lease and the pe1formance of all obligations under this Lease.
62. SEVERABILITY.
If any clause, phase, provision or portion of this Lease or the application of same to any person or circumstance shall be invalid or unenforceable under applicable law, such event shall not affect, impair or render invalid or unenforceable the remainder of this Lease, nor any other clause, plu·ase, provision or pmtion of this Lease, nor shall it affect the application of any clause, phrase, provision or pmtion of this Lease to other persons or circumstances.
63. NO CONSTRUCTION AGAINST DRAFTER.
No construction, interpretation, inference, nor presumption shall arise against, nor prejudice, the drafter hereof, nor any patty for whom such a drafter is an agent by reason of being such drafter hereof
64. NO MERGER.
The voluntary or other surrender of this Lease by Tenant, or a mutual cancellation thereof, shall not result in a merger of City's and Tenant's estates, and shall, at the option of City, either terminate any Path: q :\council\2014\101414\2014 10 07 ufs lease final.docx Attachment 1
FBO Lease: Monterey Bay Aviation and City of Watsonville September, 2014
or all existing subleases or sub tenancies, or operate as an assignment to City of any and all of such subleases and sub tenancies.
65. PREPARATION OF LEASE.
This Lease was prepared by Grunsky, Ebey, Farrar & Howell, Attorneys at Law, on behalf of the City. Tenant has not been represented by or received legal advice from Grunsky, Ebey, Farrar & Howell, and acknowledges that it has been represented by attorney Richard Manning, Esq., in this matter.
66. PERSONAL GUARANTY.
The Pmties agree that Joyce A. Ross and Terrence M. McKenna will personally guaranty Tenant's obligations hereunder in the form attached hereto as Exhibit "C".
IN WITNESS WHEREOF, the Patties hereto have executed this Lease the day and year first above written.
City of Watsonville,
a municipal corporation
By: -&--1dk aIfo J~. oqa_l tl---1--s-, ity_M_a_n~age_r __ _ Attest:
d~~k
Path: q:\council\2014\101414\20 14 10 07 ufs lease final.docx "Tenant"
Monterey Bay Aviation, Inc.,
a California corporation, doing business as United
Flight Services
Terrence M. McKenna, its ChiefExecutive Officer
Attachment 1
EXHIBIT A
SITUATED in the City of Watsonville, County of Santa Cruz, State of California, and being a portion of the lands conveyed to the City of Watsonville by deeds recorded in Volume 471, Page 497, Official Records of Santa Cruz County and in Volume 666,
as follows:
BEGINNING at a point from which a City of Watsonville brass disk stamped W-20, as shown on the record of survey recorded in Volume 115 of Maps at Page 7, bears South 1°02'43" West 932.99 feet distant; thence from said point of beginning
1. North 2°43'38" West 39.58 feet; thence
2. North 41°33'54" West 39.16 feet; thence
3. North 2°43'38" West 47.25 feet; thence
4. South 87°16'22" West 79.66 feet; thence
5. North 2°43'38" West 154.17 feet; thence
6. North 88°43'06" East 318.40 feet; thence
7. South 1°14'53" East 111.57 feet; thence
8. South 89°00'00" West 28.64 feet; thence
9. South 1°00'00" East 37.99 feet; thence
10. South 87° 16'22" West 41.22 feet; thence
11. South 2°43'38" East 45.25 feet; thence
12. South 87°16'22" West 12.71 feet; thence
13. South 2°43'38" East 43.54 feet; thence
14. South 29°43'31" East 13.66 feet to a point from which a brass disk stamped W-515, as shown on the record of survey recorded in Volume 115 of Maps at
15. South 55°02'46" West 61. 71 feet; thence
16. North 28°07'07" West 21.08 feet; thence
17. South 87°16'22" West 72.46 feet to said point of beginning.
Attachment 1
Containing 1.47 acres, more or less.
Compiled by Roper Engineering, Job No. 09019, November 2013 ~f2r= 11-25-13
Attachment 1
s 8T16'22" W 79.66
N 2'43'38" W 47.25-
N 41'33'54" W 39.16
N 2'43'38" W 39.58
SCALE: 1 "=50'
0 -----25 50 100 !
FEET
DISTANCES SHOWN ARE IN FEET
AND DECIMALS THEREOF
EXHIBIT B
N 88'43'06" E 318.40
w:;s: F:_
!~
!~
:(/)
1.47± ACRES
S 8T16'22" W
72.46 BRASS DISK & W-20
115M7
SHEET 1 OF 1
(/)
U!
-....)
s 89'00' w 28.64 \
S 1'00' E 37.99
S 8T16'22" W 41.22
S 2'43'38" E 45.25
s 87'16'22" w 12.71
i---S 2'43'38" E 43.54
~ S 29'43'31" E 13.66
.. N ... 89:2chE/l.~ ...... 52·5:12 f ..... £
N 28'07'07" W 21.08
BRASS DISK
W-515
115M7
Attachment 1
EXHIBIT C
Personal Guarantee
This Personal Guaranty ("Guaranty") dated as of March I, 20 I 4, is entered into between JOYCE A. ROSS and TERRENCE M. MCKENNA, (collectively "Guarantor") in favor of CITY OF WATSONVILLE, a municipal corporation ("City").
RECITALS
A. WHEREAS, City has entered into a lease ("Lease") dated October __ , 20 I 4 with Monterey Bay Aviation, Inc., a California corporation, doing business as United Flight Services ("Company") for the premises located at Watsonville Municipal Airpo1i (Airpo1i) in the City of Watsonville, County of Santa Cruz, State of California, more particularly described on Exhibit A and depicted on Exhibit B of said Lease, on the tenns and subject to the conditions as hereinafter set forth.
B. WHEREAS, City will consent to the Lease only upon receiving the personal guaranty from the Guarantor guaranteeing the obligations of Company under the Lease; ACCORDINGLY, in consideration of the mutual covenants contained herein, the parties agree as follows:
AGREEMENT
1. Guaranty.
I. I Guaranty of Obligations. Guarantor unconditionally, absolutely and irrevocably guarantees and promises to pay to City, on demand, in lawful money of the United States of America and in immediately available funds, any and all indebtedness and obligations (hereinafter collectively, the "Guaranteed Obligations") of Company to City under the Lease or agreement, or other document or instrument entered into by Company (hereinafter collectively, the "Documents") or otherwise. The term "Guaranteed Obligations" is used herein in its most comprehensive sense and includes any and all debts, obligations and liabilities of Company to City (including, without limitation, any and all attorneys' fees, expenses, costs, premiums, charges and accrued and unpaid interest, including interest that, but for the filing of a petition in bankruptcy, would have accrued on the Guaranteed Obligations) now existing or hereafter incurred or created, whether voluntarily or involuntarily, and however arising, whether due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined, whether Company may be liable individually or jointly with others, whether recovery upon such indebtedness may be or hereafter becomes barred by any statute of limitations or whether such indebtedness may be or hereafter becomes otherwise unenforceable, and includes Company's prompt, full and faithful performance, observance and discharge of each and every term, condition, agreement, representation, warranty, unde1iaking and provision to be performed by Company under the Documents or otherwise. Guarantor agrees that this Guaranty constitutes a guaranty of payment when due and not of collection.
1.2 Continuing Guaranty. This Guaranty is a continuing guaranty of the Guaranteed Obligations, including any and all Guaranteed Obligations which are renewed, extended, compromised, refinanced or restructured from time to time. This Guaranty shall remain effective Attachment 1
Personal Guarantee: Monterey Bay Aviation Lease
December, 2013
until the Guaranteed Obligations have been fully paid, performed and discharged as provided in Section 8 and City has given written notice of that fact to Guarantor.
1.3 Independent Obligations. Guarantor agrees that it is directly and primarily liable to City, that its obligations hereunder are independent of the Guaranteed Obligations and that a separate action or actions may be brought and prosecuted against Guarantor, whether action is brought against Company or whether Company is joined in any such action or actions.
Guarantor agrees that any releases which may be given by City to Company or any other guarantor or endorser shall not release it from this Guaranty.
2. Indemnity.
2.1 Indemnity. In addition to the payment of expenses pursuant to Section 9 .1, Guarantor agrees to indemnify, defend, exonerate, pay and hold City (the "Indemnitee") harmless from and against any and all liabilities, obligations, losses, damages, penalties, actions, causes of action, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including, without limitation, the fees and disbursements of counsel and expert witness fees and disbursements) for such Indemnitees in connection with any investigative, administrative or judicial proceeding, whether or not such Indemnitee shall be designated a pmty thereto, that may be imposed on, incurred by or asse11ed against such Indemnitee, in any manner relating to or arising out of or in connection with this Guaranty (the Indemnified Liabilities).
Notwithstanding the foregoing, Indemnified Liabilities shall not include liabilities, obligations, losses, damages, penalties, actions, causes of action, judgments, suits, claims, costs, expenses and disbursements to the extent caused by or resulting from the willful misconduct or gross negligence of such Indemnitee.
2.2 Notice. Indemnitee will promptly notify Guarantor of each event of which it has knowledge that may give rise to a claim under this Section 2.
2.3 Defense of Actions. If any investigative, judicial or administrative proceeding arising in connection with any of the Indemnified Liabilities is brought against any Indemnitee indemnified or intended to be indemnified pursuant to this Section 2, Guarantor, to the extent and in the manner directed by the Indemnitee or intended Indemnitee, will resist and defend such action, suit or proceeding or cause the same to be resisted and defended by counsel designated by Guarantor (which counsel shall be satisfactory to the Indemnitee or intended Indemnitee ). Each Indemnitee will use its best effo1ts to cooperate in the defense of any such action, suit or proceeding. To the extent that the undertaking to indemnify, pay and hold harmless set forth in the preceding sentence may be unenforceable because it is violative of any law or public policy, Guarantor shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities that is permissible under applicable law.
3. Consents by Guarantor.
3.1 Consents. Guarantor hereby authorizes City, without notice or demand and without affecting Guarantor's liability hereunder, from time to time to:
(a) Changes in Terms. Renew, compromise, extent, refinance, accept partial payments, accelerate or restructure the Guaranteed Obligations or otherwise change the time for q:\council\2014\101414\2014-10-07 personal guarantee corrected emailed 10 07 2014.docx Attachment 1
Personal Guarantee: Monterey Bay Aviation Lease
December, 2013
payment or the terms of any of the Guaranteed Obligations, or any pai1 thereof, including, without limitation, increasing or decreasing the rate of interest thereof; (b) Amendment of Documents. Enter into any waiver, amendment, rescission or modification of any of the terms or provisions of the Documents or any agreement or document executed in connection therewith concerning City's rights with respect to Company under the Lease or other Documents;
(c) Waive, amend or fail to enforce any other provision of the Lease; (d) Liquidation of Guaranteed Obligations. Settle, release, compromise, collect or otherwise liquidate the Guaranteed Obligations, or any pai1 thereof, and any security or collateral therefor in any manner as City may determine in its sole discretion; ( e) Collateral. Take and hold collateral to secure the payment of the Guaranteed Obligations and exchange, enforce, waive and release any such collateral, and apply such collateral and direct the order or manner of sale thereof as City in its sole discretion may determine;
(f) Releases. Release or substitute any one or more endorser(s) or other guarantor(s); and
(g) Assignment. Assign, without notice, this Guaranty in whole or in part and City's rights hereunder to any one at any time.
3.2 Non-Release of Guarantor. Guarantor agrees that City may do any or all of the foregoing in such manner, upon such terms, and at such times as City, in its sole discretion, deems advisable, without, in any way or respect, impairing, affecting, reducing or releasing Guarantor from its undertakings hereunder and Guarantor hereby consents to each and all of the foregoing acts, events and occurrences.
4. Waivers.
4.1 Defenses. Guarantor hereby waives any right to assert against City as a defense, counterclaim, setoff or cross-claim, any defense (legal or equitable), counterclaim, setoff or cross-claim which Guarantor may now or at any time hereafter have under applicable law, rule, arrangement or relationship against Company, City or any other party. Guarantor waives all defenses, counterclaims and setoffs of any kind or nature arising, directly or indirectly, from the present or future lack of perfection, sufficiency, validity or enforceability of the Documents or any security interest thereunder.
4.2 Election of Remedies. Guarantor hereby waives any defense arising by reason of any claim or defense based upon an election of remedies by City, which in any manner impairs, affects, reduces, releases, destroys or extinguishes Guarantor's subrogation rights, rights to proceed against Company for reimbursement, or any other rights of Guarantor to proceed against any other person or security, including, but not limited to, any defense based upon an election of q:\council\2014\101414\2014-10-07 personal guarantee corrected emailed 10 07 2014.docx Attachment 1
Personal Guarantee: Monterey Bay Aviation Lease
December, 2013
remedies by City under the provisions of Section 580( d) of the California Code of Civil Procedure, or any similar law of California or of any other state, or of the United States.
4.3 Presentment, Demand and Notice. Except as provided in Section 2.2, Guarantor waives all presentments, demands for performance, notices of nonperformance, protests, notices of protests, notices of dishonor, notices of default, notice of acceptance of this Guaranty, diligence, and notices of the existence, creation or incurrence of the Guaranteed Obligations or of new or additional Guaranteed Obligations incurred or created after the date of this Guaranty, and all other notices or formalities to which Guarantor may be entitled under applicable law.
4.4 Remedies Against Company. As a condition to payment or performance by Guarantor under this Guaranty, City shall not be required to, and Guarantor hereby waives any and all rights to require City to, prosecute or seek to enforce any remedies against Company or any other pmiy liable to City on account of the Guaranteed Obligations or to require City to seek to enforce or res01i to any remedies with respect to any security interests, liens or encumbrances granted to Company by City or any other pmiy on account of the Guaranteed Obligations. This waiver includes but is not limited to an express waiver of the rights created by Section 2845 and relevant case law.
4.5 Subrogation Rights. Guarantor shall have no right of subrogation, reimbursement, exoneration, contribution or any other rights that would result in Guarantor being deemed a creditor of Company under the federal Bankruptcy Code or any other law. Guarantor irrevocably waives all such rights, the right to asse1i any such rights and any right to enforce any remedy which City now or may hereafter have against Company and hereby irrevocably waives any benefit of and any right to participate in, any security now or hereafter held by City, whether any of the foregoing rights arise in equity, at law or by contract.
5. Subordination.
Any and all present and future debts and obligations of Company to Guarantor are hereby postponed in favor of and subordinated to the full payment and performance of all present and future debts and obligations of Company to City. Any instruments now or hereafter evidencing any indebtedness of Company to Guarantor shall be marked with a legend that the same are subject to this Guaranty and, if City so requests, shall be delivered to City. Upon the liquidation, bankruptcy, or distribution of any of Company's assets, Guarantor shall assign to the City all of Guarantor's claims on account of such indebtedness so that City shall receive all dividends and payments on such indebtedness until payment in full of the Guaranteed Obligations. This Section 5 shall constitute such an assignment if Guarantor fails to execute and deliver such an assignment. All monies or other property of Guarantor at any time in City's possession may be held by City as security for any and all obligations of Guarantor to City, now existing or hereafter arising, whether absolute or contingent, whether due or to become due, and whether under this Guaranty or otherwise. Guarantor also agrees that City's books and records showing the account between City and Company shall be admissible in any action or proceeding and shall be binding upon Guarantor for the purpose of establishing the terms set forth therein and shall constitute prim a facie proof thereof
q:\council\2014\101414\2014-10-07 personal guarantee corrected emailed 10 07 2014.docx Attachment 1
Personal Guarantee: Monterey Bay Aviation Lease
December, 2013
6. Financial Condition of Company.
Guarantor is presently informed of the financial condition of Company and of all other circumstances which a diligent inquiry would reveal and which bear upon the risk of nonpayment of the Guaranteed Obligations. Guarantor hereby covenants that it will continue to keep itself informed of Company's financial condition and of all other circumstances which bear upon the risk of nonpayment. Absent a written request for such information by Guarantor to City, Guarantor hereby waives its right, if any, to require, and City is relieved of any obligation or duty to disclose to Guarantor any information which City may now or hereafter acquire concerning such condition or circumstances.
7. Representations and Warranties.
Guarantor represents and warrants to City that the following statements are true, correct and complete as of the date of this Guaranty:
(a) Authorization. This Guaranty has been duly executed and delivered by Guarantor and constitutes the legal, valid and binding obligation of Guarantor enforceable in accordance with its terms.
(b) No Conflict. Neither the execution and delivery of this Guaranty nor the fulfillment of or compliance with the terms and conditions of this Guaranty conflicts with or shall result in a breach of the terms, conditions or provisions of any agreement or instrument to which Guarantor is now a pmty or by which it is bound, or constitutes a default under any of the foregoing, or results in the creation or imposition of any lien, charge or encumbrance whatsoever upon any of the property or assets of Guarantor under the terms of any instrument or agreement or violates any provision of law or any order of any court or other agency of government. (c) No Actions or Proceedings. There is no pending or threatened suit or proceeding affecting Guarantor before any court, governmental agency, or arbitrator which might affect the enforceability of this Guaranty or the business, operations, assets or condition of Guarantor.
( d) Adequate Consideration. The consideration given or provided, or to be given or provided, by City in connection with this Guaranty is adequate and satisfactory in all respects to support this Guaranty and Guarantor's obligations hereunder.
8. Termination of Guaranty.
Except as set forth in Section 9, Guarantor's obligations under this Guaranty shall continue in full force and effect and this Guaranty shall not terminate until the Guaranteed Obligations are fully paid, performed and discharged and City gives Guarantor written notice of that fact. The Guaranteed Obligations shall not be considered fully paid, performed and discharged unless and until all payments by Company to City are no longer subject to any right on the part of any person whomsoever, including, but not limited to, Company, Company as a debtor-inpossession, or any trustee or receiver in bankruptcy, to set aside such payments or seek to recoup the amount of such payments, or any part thereof. The foregoing shall include, by way of example and not by way of limitation, all rights to recover preferences voidable under Title 11 of the United States Code. In the event that any such payments by Company to City are set aside q:\council\2014\101414\2014-10-07 personal guarantee corrected emailed 10 07 2014.docx Attachment 1
Personal Guarantee: Monterey Bay Aviation Lease
December, 2013
after the making thereof, in whole or in pmi, or settled without litigation, to the extent of such settlement, all of which is within City's discretion, Guarantor shall be liable for the full amount City is required to repay plus costs, interest, attorneys' fees and any and all expenses which City paid or incurred in connection therewith.
9. Substitution of Guarantor(s)
City shall release either or both of Guarantors from further obligations under this Personal Guaranty at such time as all of the following have occurred:
(a) City has consented to assignment of all Tenant's rights under the Lease, the assignment has taken place and the assignee has accepted all Tenant's obligations and liabilities under the Lease.
(b) The assignee has, for two years, performed the Tenant's obligations under this Lease without any breach thereof.
(c) The assignee has agreed to assume all of the Guarantors' obligation under the within Personal Guarantee.
(d) The financial condition of the assignee at the end of the two-year period is as strong as that of Guarantors herein.
10. Miscellaneous.
10.1 Expenses. Guarantor agrees to pay all attorneys' fees and all other costs and outof-pocket expenses which may be incurred by City in the enforcement or collection of this Guaranty and the Guaranteed Obligations, whether or not suit is filed.
10.2 Interest. All amounts required to be paid to City by Guarantor pursuant to the provisions of this Guaranty (including, without limitation, pursuant to Sections 2 and 9.1 hereof) shall bear interest from and including the date upon which such amounts are due, to and excluding the date of payment thereof, at the rate often percent (10%) per annum. All payments of such amounts by Guarantor shall include any such accrued interest.
10.3 Headings. The Section and other headings contained in this Guaranty are for reference purposes only and shall not affect in any way the meaning or interpretation of this Guaranty.
10.4 Governing Law. The validity, construction and performance of this Guaranty shall be governed by the laws, without regard to the laws as to choice or conflict of laws, of the State of California.
10.5 Entire Agreement. This Guaranty embodies the entire agreement and understanding between the parties pe1iaining to the subject matter of this Guaranty, and supersedes all prior agreements, understandings, negotiations, representations and discussions, whether verbal or written, of the pmiies, pertaining to that subject matter. q:\council\2014\101414\2014-10-07 personal guarantee corrected emailed 10 07 2014.docx Attachment 1
Personal Guarantee: Monterey Bay Aviation Lease
December, 2013
10.6 Assignment. Neither this Guaranty nor any rights under this Guaranty may be assigned by Guarantor without the prior written consent of City.
10.7 Binding Effect. The provisions of this Guaranty shall bind and inure to the benefit of the parties hereto and their respective heirs, personal representatives, issue, estate, trusts, successors and assigns, permitted or by operation of law.
10.8 Parties in Interest. Nothing in this Guaranty, expressed or implied, is intended to confer on any person or entity other than the parties any right or remedy under or by reason of this Guaranty.
l 0.9 Notices. Any notice or communication required or permitted by this Guaranty shall be deemed sufficiently given if in writing and, if delivered personally, when it is delivered or if deposited with the U.S. Postal Service, postage prepaid, and addressed to the party to receive it at the address set forth in the first paragraph of this Guaranty, 48 hours after such deposit as registered or certified mail.
10.10 Amendment and Waiver. This Guaranty may be amended, modified or supplemented only by a writing executed by each of the parties. Any party may in writing waive any provision of this Guaranty to the extent such provision is for the benefit of the waiving paiiy.
No action taken pursuant to this Guaranty, including any investigation by or on behalf of any paiiy, shall be deemed to constitute a waiver by that party of its or any other party's compliance with any representations or warranties or with any provisions of this Guaranty. No waiver by any party of a breach of any provision of this Guaranty shall be construed as a waiver of any subsequent or different breach, and no forbearance by a paiiy to seek a remedy for noncompliance or breach by another party shall be construed as a waiver of any right or remedy with respect to such noncompliance or breach.
10.11 Prompt Action. Time is of the essence with respect to each provision of this Guaranty.
10.12 Severability. The invalidity or unenforceability of any particular provision of this Guaranty shall not affect the other provisions, and this Guaranty shall be construed in all respects as if any invalid or unenforceable provision were omitted.
10.13 Further Action. Each party agrees to perform any fmiher acts and to execute and deliver any other documents which may be reasonably necessary to effect the provisions of this Guaranty.
10.14 Survival of Representations and Warranties. All representations and warranties of Guarantor contained in this Guaranty shall survive the execution and delivery of this Guaranty and shall continue until any and all Guaranteed Obligations have been fully paid, performed and discharged in full.
10.15 Preparation of Guaranty. This Guaranty was prepared by Grunsky, Ebey, Farrar & Howell, Attorneys at Law, on behalf of the City. Guarantor has not been represented by or received legal advice from Grunsky, Ebey, Farrar & Howell, and acknowledges that it either has q:\council\2014\101414\2014-10-07 personal guarantee corrected emailed 10 07 2014.docx t
Attachment 1
Personal Guarantee: Monterey Bay Aviation Lease
December, 2013
been represented by an attorney in this matter or has been advised to do so and has had the opportunity to do so.
IN WITNESS WHEREOF, the patties hereto have caused this Guaranty to be duly executed as of the date and year first above written.
"City" "Guarantor"
City of Watsonville,
a municipal corporation
os , an individua
Dated: /.O /1 I )..,b/V
Terrence M. McKenna, an individual
Dated: /0/7 /za 14 J J
. Attest:
q:\council\2014\ 101414\2014-10-07 personal guarantee corrected emailed 10 07 2014.docx Attachment 1
•**• • •
: OLD REPUBLIC"'""""''~"' • • ••• Certificate of Insurance Phoenix Aviation Managers, Inc.
This is to certify to
(Certificate Holder):
City of Watsonville I Watsonville Airport
275 Main Street, Suite 400
Watsonville, CA 95076
The following policy(ies)
have been issued to: Monterey Bay Aviation, Inc., OBA United Flight Services 120 Aviation Way
Watsonville CA 95076
AIRCRAFT POLICY NO: POLICY PERIOD: FROM:
INSURANCE COMPANY: OLD REPUBLIC INSURANCE COMPANY
THIS COVERAGE IS EFFECTIVE 12:01AM,
LIABILITY COVERAGES:
____ Bodily Injury
____ Property Damage
____ Passenger Bodily Injury
____ Single Limit including Passengers,
____ With Passenger Liability Limited to:
DESCRIPTION OF AIRCRAFT
FAA
NUMBER YEAR MAKE & MODEL
LIMITS OF LIABILITY
EACH PERSON
$XXXX
$XXXX
EACH OCCURRENCE
$XXXX
PHYSICAL DAMAGE COVERAGE:
INSURED
VALUE
PHOENIX AVIATION
TO:
All Risks Ground and In-Flight
DEDUCTIBLES (NIM/IM)
____ As respects any Aircraft Owned and Operated by the Named Insured. and covered under the above referenced Policy AIRPORT POLICY NO: AP 00980706 POLICY PERIOD: FROM: September 26, 2014 INSURANCE COMPANY: OLD REPUBLIC INSURANCE COMPANY
THIS COVERAGE IS EFFECTIVE 12:01AM September 26, 2014
LIABILITY COVERAGES: LIMITS OF LIABILITY
X Comprehensive General Liability CSL each person
____ Completed Operations each person
____ Not Applicable
____ Hangarkeepers Liability
X Premises Medical Payments
Deductibles: Hangarkeeper's Liability
$5,000
each person
each aircraft
each person
TO:
$3,000,000
$0
$0
$0
$25,000
____ Premises Liability $0 each claim with respect to Property Damage *Refer to the Policy, an Annual Aggregate limit may apply to some coverages.
This Certificate Holder is:
____ Included as a Loss Payee for Aircraft Physical Damage Coverage and included as an additional insured Provided Breach of Warranty Coverage on Aircraft Physical Damage Coverage as their interest ____ may appear not to exceed 90% of the Insured Value.
September 26, 2015
each occurrence •
each occurrence •
property damage •
each occurrence •
property damage •
each loss
each accident
X Is included as an Additional Insured on aviation operations liability coverages but only with respectto operations of the Named Insured. ____ Is provided a Waiver of Subrogation, but only as respects Aircraft Physical Damage Coverage.
OTHER COVERAGES/CONDITIONS/REMARKS:
Provision has been made to give the Certificate Holder thirty (30) day notice of cancellation of any policy above, however, ten (10) days for Non-Payment of Premium of any policy above, however, the Company assumes no responsibility for the failure to provide such notice.
This Certificate does not change in any way the actual coverages provided by the policy(ies) specified above.
This document is issued as a matter of information only and confers no rights upon the document holder. This document does not amend, extend, or alter the coverage, terms, exclusions, conditions, or other provisions afforded by the policies referenced herein nor does it consititute a contract between the issuing insurer(s), authorized representative or producer.
Phoenix Aviation Representative:
Agency Name: FALCON INS. AGENCY OF CALIFORNIA, INC
Agency Phone: 800-624-8856
Date: October 1, 2014
555 S. Renton Village Place; Suite 550; Renton, WA 98057; Tel: 425.277.7407; Fax: 425.277.0112; CLAIMS FAX: 770.919.8646 Attachment 1
OLD REPUBLIC INSURANCE COMPANY
ADDITIONAL INSURED
IT IS AGREED THAT THE FOLLOWING IS HEREBY INCLUDED AS AN ADDITIONAL
INSURED UNDER LIABILITY COVERAGES, BUT ONLY AS RESPECTS OPERATIONS OF THE NAMED INSURED. THIS AGREEMENT SHALL NOT OPERATE TO PREJUDICE
THE COMPANY'S RIGHTS OF RECOURSE AGAINST THE FOLLOWING AS MANUFACTURERS,
REPAIRERS, SUPPLIERS OR SERVICING AGENTS WHERE SUCH RIGHT OF RECOURSE
WOULD HAVE EXISTED HAD THIS ENDORSEMENT NOT BEEN EFFECTED UNDER THIS POLICY:
A. HQ CAWG/DOAM
P.O. BOX 7688
VAN NUYS, CA 91409-7688
B. WILLIAMS SCOTSMAN, INC.
8211 TOWN CENTER DRIVE
BALTIMORE, MD 21236
C. CITY OF WATSONVILLE
WATSONVILLE AIRPORT
275 MAIN STREET, SUITE 400
WATSONVILLE, CA 95076
D. NOR-CAL AERO SERVICES
120 AVIATION WAY
WATSONVILLE, CA 95076
E. COUNTY OF MARIN/GNOSS FIELD
P.O. BOX 4055
SAN RAFAEL, CA 94913-4055
THE COVERAGE LIMITS AFFORDED HEREUNDER SHALL BE INCLUDED WITHIN AND NOT IN ADDITION TO THE LIMITS APPLICABLE TO THE NAMED INSURED.
Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated.
This endorsement becomes effective SEPTEMBER 26, 2014 to be attached to and hereby made a part of Policy No. AP 00980706 issued through OLD REPUBLIC INSURANCE COMPANY, issued to: MONTEREY BAY AVIATION, INC. DBA
UNITED FLIGHT SERVICES
Date of issue 09-29-2014
PA202 (02/05)
120 AVIATION WAY
WATSONVILLE CA 95076
Attachment 1
Reso No. 1-18 (CM)
P:\COUNCIL\2018\011618\United Flight Services Lease.docx ri 1/17/2018 12:28:43 PM
1 RESOLUTION NO. 1-18 (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE APPROVING FIRST AMENDMENT TO SECOND
AMENDED LEASE BETWEEN THE CITY OF WATSONVILLE AND
MONTEREY BAY AVIATION, INC., A CORPORATION, DBA UNITED
FLIGHT SERVICES FOR CITY OWNED PROPERTY LOCATED AT 120
AVIATION WAY, WATSONVILLE, CALIFORNIA, AND AUTHORIZING
AND DIRECTING THE CITY MANAGER TO EXECUTE SAME
Amends Resolution No. 135-14 (CM)
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. That the First Amendment to Second Amended Lease between the City of Watsonville and Monterey Bay Aviation, Inc., a corporation, dba United Flight Services for City owned property located at 120 Aviation Way, Watsonville, California, a copy of which Lease is attached hereto and incorporated herein by this reference, is fair and equitable and is hereby ratified and approved.
2. That the City Manager be and is hereby authorized and directed to execute such Lease for the initial term, and if properly exercised, the two (2) options of five years for and on behalf of the City of Watsonville.
*********************************
Attachment 2
Attachment 2
Attachment 2
Reso No. (CM)
Reference: Reso No. 135-14 and 1-18 (Amend)
Meeting Date: 021324 SWZ ______ RM ______ WMA ______
1 RESOLUTION NO.__________ (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE APPROVING SECOND AMENDMENT TO THE SECOND
AMENDED LEASE BETWEEN THE CITY OF WATSONVILLE AND
MONTEREY BAY AVIATION, INC., A CORPORATION, DBA UNITED
FLIGHT SERVICES FOR CITY OWNED PROPERTY LOCATED AT 120
AVIATION WAY, WATSONVILLE, CALIFORNIA, AND AUTHORIZING
AND DIRECTING THE CITY MANAGER TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. Adopting a Resolution approving a Second Amendment to Second Amended Lease with Monterey Bay Aviation, Inc., dba United Flight Services 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 the Second Amendment to the Second Amended Lease between the City of Watsonville and Monterey Bay Aviation, Inc., a corporation, dba United Flight Services for City owned property located at 120 Aviation Way, Watsonville, California, a copy of which Amendment is attached hereto and incorporated herein by this reference, is hereby approved.
3. That the City Manager be and is hereby authorized and directed to execute such Second Amendment to the Second Amended Lease for and on behalf of the City of Watsonville.
*********************************
2/8/2024 6:57:16 PM
C:\Program Files\eSCRIBE\TEMP\18571235048\18571235048,,,Report - Memorandum of Agrmt Santa Cruz Integrated Regional Water Management Plan .docx
Agenda Report
MEETING DATE: Saturday, February 10, 2024
TO: City Council
FROM: PUBLIC WORKS & UTILITIES DIRECTOR LINDBERG
ENVIRONMENTAL SUSTAINABILITY MANAGER MCCLOUD
THROUGH: CITY MANAGER MENDEZ
SUBJECT: EXECUTION OF THE 2024 MEMORANDUM OF AGREEMENT
(MOA) WITH THE SANTA CRUZ INTEGRATED REGIONAL
MANAGEMENT (IRWM) PROGRAM
RECOMMENDED ACTION:
Recommend that the City Council authorize the City Manager to execute the 2024 Memorandum of Agreement (MOA) with the Santa Cruz Integrated Regional Management Program.
BACKGROUND:
The City and other partner agencies entered into a Memorandum of Agreement (MOA) in June of 2006 to guide the integrated regional water management efforts. The proposed MOA provides for ongoing grant efforts. The terms of the MOA are relatively general, and any specific obligations will be covered in future grant agreements and sub-agreements.
To continue participating in the Santa Cruz Integrated Regional Water Management Program, the City will need to execute the updated 2024 Memorandum of Agreement.
DISCUSSION:
The 2024 Santa Cruz Integrated Regional Management (IRWM) Program MOA has been updated to reflect recent activities since 2016 and new statewide programs. The statewide programs include the Sustainable Groundwater Management Act (SGMA), Groundwater Sustainability Agencies (GSA), and forthcoming programs that advance and incentivize regional planning through watershed resilience and climate resiliency programs as outlined in the State Water Plan update in 2023.
Santa Cruz County is the lead agency in developing the Regional Water Management Program. County staff worked with the partner agencies in the county, including the City of Watsonville, to develop and implement the Northern Santa Cruz Preliminary Integrated Regional Water Management Plan in 2005. In June of 2006, the city entered into a memorandum of agreement with the other partner agencies that ultimately led to significant grant funding in 2008 and has continued through today. In 2016, Santa Cruz
2/8/2024 6:57:16 PM
C:\Program Files\eSCRIBE\TEMP\18571235048\18571235048,,,Report - Memorandum of Agrmt Santa Cruz Integrated Regional Water Management Plan .docx
Regional Water Management Group into a Central Coast Funding Area Memorandum of Agreement with the six other Central Coast Integrated Regional Water Management Programs to improve the IRWM planning process. This process allowed for all six funding regions to improve efficiency and equitable grant distribution across the Central Coast.
Participation in the Regional Water Management Plan is necessary to qualify for grant funding. Nearly all State grant programs now require that the project applicant is part of an Integrated Water Management Plan to qualify for grant funding. Signing the MOA demonstrates the City’s intent to participate in future integrated water planning efforts and positions the city for many important grant funding opportunities that could fund water supply and water quality improvement projects. To date, the Central Coast Funding Area has been awarded $43M across the Region.
The City of Watsonville has been a recipient of Santa Cruz IRWM grants that include Proposition 1 funding for Disadvantaged Community engagement for the Middle Struve Slough Water Quality and Habitat Improvement Project in the amount of $105,000, Emergency Drought grant funding in the amount of $4.85M for the Airport Reservoir Project, and recently $545,000 for the Atkinson Lane Integrated Flood Management and Watershed Restoration Project.
STRATEGIC PLAN:
The execution of the 2024 Santa Cruz Integrated Regional Water Management Program Memorandum of Agreement supports the following Strategic Goals:
2-Infrastructure & Environment
FINANCIAL IMPACT:
There is no financial impact with executing the Santa Cruz IRWM Program MOA.
ALTERNATIVE ACTION:
City Council could not execute the Memorandum of Agreement.
ATTACHMENTS AND/OR REFERENCES (If any):
1. 2024 Santa Cruz IRWM MOA Cover Letter
December 12, 2023
Santa Cruz Regional Water Management Group:
Please find the attached 2024 Memorandum of Agreement (MOA) amongst the member agencies of Regional Water Management Group (RWMG) participating in the Santa Cruz Integrated Regional Water Management (IRWM) Program. The initial MOA was approved in 2006, it was updated and renewed 2010/2011 and updated and renewed with additional member agencies added in 2016.
Signatories to the 2016 MOA include:
• Central Water District
• City of Capitola
• City of Santa Cruz
• City of Scotts Valley
• City of Watsonville
• County of Santa Cruz
• Santa Cruz County Sanitation District
• Davenport County Sanitation District
• Resource Conservation District of Santa Cruz County
• San Lorenzo Valley Water District
• Scotts Valley Water District
• Soquel Creek Water District
The 2024 MOA is updated to reflect activities since 2016 and the new statewide programs, including the Sustainable Groundwater Management Act (SGMA) and new Groundwater Sustainability Agencies, and forthcoming state programs to advance and incentivize regional planning via new watershed resilience and climate resiliency programs outlined in the State Water Plan Update 2023.
To date, over $28 million grant awards and more than $20 million in local matching funds, have supported the completion of more than 110 projects and technical studies in the Region through the IRWM Program. The RWMF has worked with local agencies in support of an additional $33 million in other grant awards to advance water supply, water quality, stormwater management, drought resilience, watershed stewardship, and water resources planning and projects via complementary grant programs.
The 2024 MOA has been reviewed by the IRWM Steering Committee. If you have any questions about the MOA, please let me know. We request you bring the MOA to your governing boards for consideration and approval at your earliest convenience.
Best regards,
Tim Carson
Program Director
Regional Water Management Foundation
Attachment 1
Reso No. (CM)
Meeting Date: 021324 SWZ ______ RM ______ PWU ______
1 RESOLUTION NO.__________ (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE APPROVING 2024 MEMORANDUM OF AGREEMENT
FOR IMPLEMENTATION OF THE SANTA CRUZ INTEGRATED
REGIONAL WATER MANAGEMENT (IRWM) PROGRAM BY THE CITY
OF WATSONVILLE; AND AUTHORIZING AND DIRECTING THE CITY
MANAGER TO EXECUTE SAME
WHEREAS, the Memorandum of Agreement of implementation of the Santa Cruz Integrated Regional Water Management (IRWA) Program and partner agencies entered into a Memorandum of Agreement (MOA) in June of 2006 to guide the integrated reginal water management efforts. The MOA provides for ongoing grant efforts. The terms of the MOA are general, and any specific obligation will be covered in future grant agreements and sub-agreements; and
WHEREAS, the City Council authorizes the City Manager to execute the 2024 Memorandum of Agreement (MOA) with the Santa Cruz Integrated Regional Management (IRWM) Group.
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 to approve the MOA between the City and the Santa Cruz Integrated Regional Management (IRWM) Program does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and if a “project,” is exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with
Reso No. (CM)
Meeting Date: 021324 2
certainty that there is no possibility that this action may have a significant effect on the environment.
2. The City Council hereby approves Memorandum of Agreement for the Santa Cruz Integrated Regional Water Management Program and Complementary Efforts by the Santa Cruz Integrated Regional Management (IRWM) Group (Central Water District, City of Capitola, City of Santa Cruz, City of Scotts Valley, City of Watsonville, County of Santa Cruz, Santa Cruz County Sanitation District, Davenport County Sanitation District, Resource Conservation District of Santa Cruz County , San Lorenzo Valley Water District, Scotts Valley Water District and Soquel Creek Water District) regarding general and any regional water management efforts, and any specific obligations will be covered in future grant agreements and sub-agreements.
3. The City Manager is hereby authorized and directed to execute said MOA for and on behalf of the City of Watsonville with minor revisions that may be approved by the City Manager and the City Attorney.
**************************************
Memorandum of Agreement 2024 Page 1
MEMORANDUM OF AGREEMENT
FOR THE SANTA CRUZ INTEGRATED REGIONAL WATER
MANAGEMENT PROGRAM AND COMPLEMENTARY EFFORTS
1. PURPOSE
The purpose of this interagency cooperative memorandum of agreement (MOA) is to reaffirm the joint efforts of the participating organizations in participating in the Integrated Regional Water Management (IRWM) Program that supports coordination, collaboration and communication in addressing the region’s water resources issues. The signatories hereby commit to the common and specific purpose of maintaining and implementing the Santa Cruz IRWM Plan (IRWMP) and efforts consistent with the IRWM Program. This MOA updates and continues the efforts initiated under the initial MOA completed in 2006 and subsequent updates completed in 2010/2011, and 2016.
2. IRWMP GOALS AND OBJECTIVES
The Santa Cruz IRWMP goals are intended to be a summary of the desired objectives that the agencies in the region are collectively working to achieve:
• Provide safe, reliable, and affordable water supply to meet current and projected demand without causing undesirable environmental impacts. • Maintain and improve surface and groundwater quality to protect beneficial uses. • Improve the condition of upland riparian and aquatic ecosystems to support the native species, watershed functions, and water needs.
• Reduce flood hazards and manage stormwater runoff through policies and projects that enhance natural hydrologic function and protect communities.
More specific objectives for the Santa Cruz IRWMP are listed below, according to the four functional areas.
Water Supply
• Ensure reliable and sustainable water supply through strategies that diversify the supply portfolio, develop alternative/supplemental sources, protect and enhance surface water and groundwater, protect against seawater intrusion, maximize efficient delivery, and address the projected impacts of climate change. • Reduce water demand as technically and economically feasible, particularly in relation to the cost of additional sources.
Water Quality
• Reduce the sources of harmful pollutants (e.g., sediment, bacteria, nitrate, persistent organics and other toxic constituents) and their impacts on aquatic resources.
Watershed Resources
• Improve and protect watershed ecosystems to support healthy watershed function. • Increase the habitat quality and quantity of critical aquatic ecosystems (i.e., streams,
Memorandum of Agreement 2024 Page 2
tidal wetlands, and freshwater wetlands).
Flood/Stormwater
• Implement integrated flood management strategies that reduce hazards and impacts from floods and provide diverse benefits (e.g., improve stormwater quality, protect ecosystems, increase groundwater recharge).
3. DEFINITIONS
3.1. Integrated Regional Water Management Plan (IRWMP). The California Water Code defines IRWMP as "a comprehensive plan for a defined geographic area, the specific development, content, and adoption of which shall satisfy requirements developed pursuant to this part. At a minimum, an Integrated Regional Water Management Plan describes the major water-related objectives and conflicts within a region, considers a broad variety of resource management strategies, identifies the appropriate mix of water demand and supply management alternatives, water quality protection, and environmental stewardship actions to provide long-term, reliable, and high-quality water supply and protect the environment, and identifies disadvantaged communities in the region and takes the water-related needs of those communities into consideration." (CWC §10530 et seq.)
3.2. IRWM Planning Region also known as the IRWM Region. The geographic area in which consolidated planning and coordination efforts including stakeholders, agencies and projects are conducted. Regions are self-forming and organizing. Regions are to be geographically contiguous and determined with regard to shared water management issues, stakeholders, and water-related conflicts. In March 2009, the California Department of Water Resources' (DWR) established a Region Acceptance Process to evaluate and approve an IRWM region. Approval of an IRWM region by DWR is required before a region can submit an application for IRWM grant funds. There are 48 IRWM regions statewide, six IRWM regions in the Central Coast Funding Area. In September 2009, DWR formally approved the Santa Cruz IRWM Region. The Santa Cruz region encompasses all of the watersheds of Santa Cruz County, excluding the Pajaro watershed, but including the Watsonville Sloughs watershed.
The Pajaro watershed is within the adjacent Pajaro IRWM Region, which also addresses flood and water supply issues in the Watsonville Sloughs watershed.
3.3. Central Coast Funding Area (CCFA). The Central Coast Funding Area (CCFA) is one of 12 funding areas statewide allocated a specific amount of funding to support IRWM activities (Water Code section 79744 (a)). The CCFA includes six IRWM Regions and incorporates lands in portions of the counties of Santa Clara (south of Morgan Hill), San Mateo (small portions), Santa Cruz, San Benito, Monterey, Kern (small portions), San Luis Obispo, Santa Barbara, Ventura (northern portion).
3.4. Regional Water Management Group (RWMG). State guidelines define the RWMG as a group of three or more agencies, at least two ofwhich have a statutory authority over water supply or water management, as well as those persons who may be necessary for the development and implementation of an IRWM Plan, pursuant to the requirements in CWC
Memorandum of Agreement 2024 Page 3
§10540and §10541.
For the Santa Cruz IRWM program, the RWMG consists of the local Agencies with statutory authority over water management and related resources, and the Regional Water Management Foundation (RWMF) which serves as the administrative and coordinating entity.
RWMG members that are signatories to the 2016 MOA includes:
• Central Water District
• City of Capitola
• City of Santa Cruz
• City of Scotts Valley
• City of Watsonville
• County of Santa Cruz
• Santa Cruz County Sanitation District
• Davenport County Sanitation District
• Resource Conservation District of Santa Cruz County
• San Lorenzo Valley Water District
• Scotts Valley Water District
• Soquel Creek Water District
3.5. Steering Committee. The Santa Cruz IRWM Steering Committee is an active, decision-making entity of the RWMG that is designed to comprise a broad representation of the RWMG to effectively make decisions on behalf of the group in a timely manner. The Steering Committee meets on a regular basis to oversee IRWM implementation and coordinate efforts as needed. The Steering Committee currently consists of the County Water Resources Program Manager, the Executive Director of the Resource Conservation District, and the General Manager/Director of a water supply agency. These individuals continue to serve as the Steering Committee unless a majority vote of the RWMG (based on one vote per agency) replaces all or some of the Steering Committee members or a replacement is necessary due to an individual's resignation. The Steering Committee provides direction and expertise in the four functional planning areas – water supply, water quality, watershed resources, and flood/stormwater management. The RWMF Program Director participates as a non-voting member of the Steering Committee and provides staff support. All Steering Committee decisions with material financial implications are ratified by the RWMG.
The Steering Committee provides information and consults with the RWMG, and performs the following functions on behalf of the RWMG
• guides IRWM Plan development and implementation;
• acts as a liaison to the Regional Water Management Foundation (see below) and all stakeholders, including state agencies, elected officials, non-governmental organizations, and the public;
• coordinates funding proposals;
• promotes project integration of multi-benefit projects; • ensures stakeholder participation; and,
Memorandum of Agreement 2024 Page 4
• tends to administrative matters concerning IRWM efforts.
3.6. Regional Water Management Foundation (RWMF). The RWMF was established in 2007 to provide organizational support for the implementation of the Santa Cruz IRWMP. The RWMF is a subsidiary of the Community Foundation Santa Cruz County (CFSCC). The RWMF is a separate 501(c)(3) tax-exempt nonprofit organization. It has its own Board of Directors and staff, with an office located at the CFSCC. The RWMF Board, includes directors appointed by the Community Foundation and three directors representing public agencies; currently, the Public Agency director seats are filled by the Steering Committee members. The primary objectives of the RWMF are to (1) protect communities in Santa Cruz County from water shortages and floods; (2) improve water supply reliability in Santa Cruz County (3) protect and improve water quality and the natural environment in Santa Cruz County; and,; and (4) improve preparedness, adaption, mitigation, and resiliency to climate change related impacts to water resources. The RWMF aims to support regional planning and implementation efforts via the IRWM program and complementary efforts such as the Sustainable Groundwater Management Act Groundwater Sustainability Plans, Watershed Resilience and Climate Resiliency programs.
The RWMF served as the grantee on prior IRWM grants awarded to the Santa Cruz region, including: a 2007 IRWM Implementation grant, a 2011 IRWM Planning grant; a 2013 Disadvantaged Communities Engagement Pilot Project; a 2016 IRWM Implementation grant; a 2018 IRWM Disadvantaged Communities Involvement Grant; and IRWM Implementation grants awarded in 2020 and 2023. The RWMF provided management and administration of these grants and served as the central hub for reporting, invoicing, and inter-agency coordination. The RWMF also assists with the preparation of grant applications and provides administrative services to agencies’ awarded grants that are complementary to IRWM efforts.
The RWMF also provides administrative and planning support to two Groundwater Sustainability Agencies that formed in response to the Sustainable Groundwater Management Act. The RWMF has provided administrative and planning support to the Santa Cruz MidCounty Groundwater Agency since 2016. The RWMF has supported the Santa Margarita Groundwater Agency with grants since 2018 and with administrative and planning support since 2022.
3.7. IRWM Stakeholders. Stakeholder group includes a diverse range of resource agencies, municipalities, local districts, non-governmental organizations, interest groups, and residents with an interest in water resources planning and management. Efforts to engage, inform and provide opportunities for stakeholders to actively participate in IRWM have occurred from the program’s inception. The stakeholder engagement seeks to ensure that diverse interests and perspectives are considered in establishing the region’s water management goals, objectives, strategies and priorities. Local agencies, organizations, and stakeholders have opportunities for input on the IRWM Plan development and specific projects through meetings and workshops and the broader community informed through boards, advisory groups, meetings and events.
Memorandum of Agreement 2024 Page 5
3.8. IRWM Projects. The California Water Code (§10537) establishes that IRWM projectsand programs arethose that accomplishanyofthe followingobjectives; a) Reduce water demand through agricultural and urban water use efficiency. b) Increase water supplies for any beneficial use through the use of any of the following, or other, means:
1. Groundwater storage and conjunctive water management
2. Desalination
3. Precipitation enhancement
4. Water recycling
5. Regional and local surface storage
6. Water use efficiency
7. Stormwater management
c) Improve operational efficiency and water supply reliability, including conveyance facilities, system reoperation, and water transfers.
d) Improve water quality, including drinking water treatment and distribution, groundwater and aquifer remediation, matching water quality to water use, wastewater treatment, water pollution prevention, and management of urban and agricultural runoff. e) Improve resource stewardship, including agricultural lands stewardship, ecosystem restoration, flood plain management; recharge area protection, urban land use management, groundwater management, water-dependent recreation, fishery restoration, including fish passage improvement, and watershed management. f) Improve flood management through structural and non-structural means, or by any other means.
4. SUMMARY OF SANTA CRUZ IRWM EFFORTS TO DATE
2005 – A Preliminary IRWMP was developed and a Proposition 50 IRWM grant proposal submitted to the DWR and the State Water Resources Control Board (SWRCB), with the CFSCC serving as applicant at the behest of the Partner Agencies. 2006 – The Partner Agencies (presently referred to as the Regional Water Management Group) entered into a Memorandum of Agreement (MOA) to establish an institutional framework to implement the IRWMP under the context of a single, regional grant agreement.
The MOA describes the Partner Agencies' and CFSCC's responsibilities to fulfill the terms of the Prop 50 IRWM Implementation grant agreement. Signatories to the 2006 MOA include:
o Soquel Creek Water District
o Scotts Valley Water District
o County of Santa Cruz
o Resource Conservation District of Santa Cruz County
Memorandum of Agreement 2024 Page 6
o Santa Cruz County Sanitation District
o Davenport County Sanitation District
o City of Santa Cruz
o City of Watsonville
o Watsonville Wetlands Watch
o Community Foundation of Santa Cruz County
2007 – The SWRCB awarded a $12.5 million grant to the CFSCC to fund the implementation of high priority IRWM projects in the region. In 2007, the CFSCC created a subsidiary organization, the RWMF, to support the IRWMP efforts and the Prop 50 administrative duties. 2008 – The RWMF and SWRCB executed a Proposition 50 IRWM Implementation Grant that awarded $12.5m for local agencies to implement 15 high priority components addressing water supply, water quality, and watershed/habitat condition. Many of components feature multi-benefit projects with on-the ground improvements in multiple locations. In total, over 50 projects were completed at more than 80 sites in the County from 2008 - 2013. The total cost of the implementation, including local match contribution, was over $30m. The RWMF served as grantee and provided the administration and coordination of this grant. 2009 – The Santa Cruz Region successfully completed the state’s IRWM Regional Acceptance Process, through which the region was formally evaluated and approved by the Dept. of Water Resources. Approval is a requirement to be eligible for IRWM grant funding.
This effort was coordinated by the Santa Cruz IRWM Steering Committee with the RWMF and consultant support.
2010 – The Santa Cruz Region conducted an open solicitation for partners, affiliates, and stakeholders to submit planning and implementation projects for inclusion in the IRWMP. Also, local agencies initiated the renewal and update of the 2006 IRWM Memorandum of Agreement. Central Water District joined as new signatory. 2011 – The RWMF and DWR executed a Proposition 84 IRWM Planning Grant that awarded approximately $1m for IRWM planning efforts in the region. The grant funded an update of the 2005 IRWM Plan and key technical studies to inform water resources management. The technical studies included: Aromas and Purisima Groundwater Basin Management; Santa Margarita Groundwater Basin Model Update; Conjunctive Use and Water Transfers (Phase II); and Watsonville Sloughs hydrology study.
2013 – The Santa Cruz Region was one of seven regions selected statewide to participate in a pilot project to identify methods and strategies to enhance economically disadvantaged community participation in the IRWM planning process. The RWMF served as grantee and supported this work that targeted efforts in Watsonville and Davenport. 2014 – A comprehensive update of the Santa Cruz IRWM Plan was completed. The Plan was reviewed and approved by the Department of Water Resources. Each of the Santa Cruz RWMG agencies formally approved the Plan through a publicly noticed process.
Memorandum of Agreement 2024 Page 7
2015 – The City of Capitola and the City of Scotts Valley formally join the RWMG. With these additions, all municipalities within the IRWM region are members of the RWMG and have approved the 2014 IRWM Plan.
2016 – The DWR recommended the Santa Cruz IRWM region receive a $1.2m grant to implement three projects to enhance water supply reliability, improve drinking water quality, and provide recycled water. The participating local agencies approved updates to and renewal of the IRWM Memorandum of Agreement.
2016 – Establishment of the Santa Cruz Mid-County Groundwater Agency (MGA), a Groundwater Sustainability Agency (GSA) under the Sustainable Groundwater Management Act (SGMA). The agency has four member agencies: Soquel Creek Water District, City of Santa Cruz, Central Water District and the County of Santa Cruz. The MGA is governed by an 11-member Board of Directors comprising of two representatives from each member agency and three private well owner representatives tasked with overseeing the groundwater management activities of the Santa Cruz Mid-County Groundwater Basin. 2017 – Establishment of the Santa Margarita Groundwater Agency (SMGWA), a GSA that oversees the groundwater management activities of the Santa Margarita Groundwater Basin. The agency has three member agencies: Scotts Valley Water District, San Lorenzo Valley Water District, and County of Santa Cruz and is governed by an 11-member Board of Directors comprising of two representatives from each member agency, one representative from the City of Scotts Valley, one from the City of Santa Cruz, one from Mount Hermon Association, and two well owner representatives.
2018 – The Santa Cruz Region received approximately $472,000 to assess the water-related needs of economically disadvantaged communities, to conduct involvement activities, and to advance projects to address needs. The six IRWM regions in the Central Coast Funding Area (Santa Cruz to Santa Barbara) coordinated efforts through DWR’s statewide disadvantaged communities involvement program. Work was conducted from 2018 to 2022. 2019 – The RWMF led the coordination and completion of an addendum to the 2014 IRWM Plan to meet the state’s updated Plan standards. The addendum included a climate change vulnerability assessment and additional requirements added by the state after 2014. The addendum was approved by DWR, thus maintaining eligibility to apply for IRWM grants. 2020 – The DWR awarded the Santa Cruz IRWM region $2.3m to implement multiple projects.
The Resource Conservation District (RCD) will implement improvements at approximately 15 sites to reduce sediment loads in the San Lorenzo River watershed and other impaired waterbodies. Davenport County Sanitation District will improve water supply storage infrastructure. The RCD and partner organizations will implement watershed restoration in the Watsonville Sloughs to improve habitat and reduce flood hazard. 2023 – The RWMF successfully applied for the final round of Proposition 1 funding and was
Memorandum of Agreement 2024 Page 8
awarded a $2.5m IRWM grant to fund six projects to improve water supply reliability, wastewater infrastructure improvements, water quality, and climate change resiliency.
Implementing agencies include: San Lorenzo Valley Water District, County of Santa Cruz, cities of Santa Cruz and Watsonville, and Watsonville Wetlands Watch. Projects will be implemented from 2023 to 2028.
5. PROPOSITION 1 FUNDING FOR IRWM AND CENTRAL COAST FUNDING AREA
COOPERATIVE AGREEMENT
Proposition 1 (Water Code §79744) authorized $510 million for projects that are included in an adopted IRWM plan that is consistent with Water Code §10530, et seq., and respond to climate change and contribute to regional water security. Funding is administered by the DWR which awards funding through competitive grants for IRWM planning and projects. $510 million is allocated across 12 hydrologic region-based Funding Areas; $43 million is allocated to the Central Coast Funding Area.
Since 2005, the six CCFA IRWM regions have worked to improve the IRWM planning process, to coordinate planning across region boundaries, and to facilitate the distribution of funding for IRWM projects by DWR. In May 2016, the CCFA IRWM regions entered into a Memorandum of Agreement (CCFA MOA) (incorporated herein by this reference). The primary intent of the CCFA MOA is to share Proposition 1 IRWM funding allocated to the CCFA among the six IRWM regions in a fair and equitable manner. The CCFA MOA will enhance the potential to improve inter-regional cooperation and efficiency. The CCFA MOA is also intended to reduce the need for the regions to compete against each other for grant funds, which creates unnecessary economic inefficiencies in implementing each region’s IRWM Plan. Each region will retain autonomous control over how funds are allocated within their respective IRWM regions. Each IRWM region will independently determine and prioritize projects to be funded within its IRWM region consistent with the IRWM program guidelines.
The CCFA is allocated $43 million through Proposition 1 for the IRWM program. This funding allocation includes the following breakdown:
IRWM Central Coast Funding Area allocation $ 43,000,000 State Administration Fee1 - 7% of Funding Area Total $ 3,010,000 DAC Specific Funding Allocations - 20% of Funding Area Total DAC involvement funding2 (10%) $ 4,300,000
DAC project implementation2 (10%) $ 4,300,000
Implementation and Planning Grants $ 31,390,000
1 State of California administrative fees (7%) consisting of 5% for DWR program administration and 2% for statewide bond costs.
2 Per Proposition 1, 20% of the Funding Area allocation is to be award for projects and planning efforts that directly benefit economically Disadvantaged Communities (DAC) with 10% directed towards Involvement and 10% towards project implementation.
Memorandum of Agreement 2024 Page 9
Per the CCFA MOA, the formula for sharing funds is based on the following: one-half (50%) of funds are equally split among the six IRWM regions; one-quarter (25%) of funds are split based on population percentage of each region based on 2009-2013 American Census Data; and one-quarter (25%) of funds are split based on the percentage of area in square miles of each region. As mandated under Proposition 1 IRWM guidelines, not less than $8.6M, or 20%, shall be allocated to projects that directly benefit Disadvantaged Communities (DAC); these funds may be awarded on a competitive or non-competitive basis. The CCFA regions will coordinate on grant funding requests by each of the regions to ensure that the sum of the total grant requests from the Funding Area does not exceed the amount allocated to the Funding Area. The division of funding shall be consistent terms of the CCFA MOA.
Santa Cruz Pajaro
Greater
Monterey
Monterey
Peninsula
San Luis
Obispo
Santa
Barbara Total CCFA
Description ALLOCATIONS
DAC support $1,109,810 $1,340,107 $1,775,034 $931,966 $1,712,669 $1,730,414 $8,600,000 Implementation $4,050,805 $4,891,390 $6,478,875 $3,401,677 $6,251,243 $6,316,010 $31,390,000 Subtotal $5,160,615 $6,231,497 $8,253,910 $4,333,643 $7,963,912 $8,046,424 $39,990,000 State Admin Fee $3,010,000
Total $43,000,000
6. IRWM COLLABORATION
In addressing the region's water resources challenges, the participating agencies are committed to:
6.1 Establish and foster relationships with regional, state, and local governments, individuals, and other interested organizations to develop and implement management practices to preserve and protect Santa Cruz County water resources. a. Undertake cooperative research and resource management initiatives that are regional in scope and disseminate information resulting from these activities. b. Produce and share relevant informational materials among the RWMG. c. Recommend to the respective governing boards actions necessary to successfully develop and implement the IRWMP.
6.2 All parties to this agreement wish to join in a common effort to develop and implement an IRWMP which shall include, but not be limited to establishing water quality, water supply, watershed stewardship, and stormwater and flood management objectives for the Santa Cruz IRWM Region.
6.3 As with IRWM efforts to date, the RWMG will contribute the personnel and financial resources necessary to develop and implement the IRWMP proportional to their potential benefit.
Memorandum of Agreement 2024 Page 10
6.4 As new partners elect to participate, they shall approve and execute this Memorandum of Agreement which establishes the understanding among participating agencies with regard to the purposes, development, and implementation of the Santa Cruz lRWMP.
6.5 In the event of future IRWM-related grant awards, sub-grantee agreements, referred to as Local Project Sponsor agreements, are anticipated to be developed that establish the specific roles and responsibilities of the grantee and sub-grantee based upon the terms and conditions of the grant award.
7. IRWMP AMENDMENTS, FORMAL UPDATES, AND PROJECT LIST UPDATES The Santa Cruz IRWMP is intended to be a dynamic document that changes over time in response to changing conditions and priorities in order to remain current in identifying strategies to address the region's water resource needs. The updates serve to keep the document up to date with the state's IRWM Plan Standards including amendments, formal updates, and updates to the IRWMP Project List.
7.1 Amendments. Amendments to the IRWMP may include informal changes that reflect minor process or organizational changes that occur relatively frequently and do not necessitate a decision by the governing bodies of the individual RWMG entities.
Amendments may also include new content in response to state legislation (e.g., SB985, AB1249) to ensure the state’s Plan Standards for state funding eligibility. The IRWM Steering Committee will provide guidance and coordination of amendments. A RWMG member agency may present an amendment for consideration to the Steering Committee.
The RWMG will be informed of and provided opportunity for input on proposed interim amendments. The Steering Committee will ratify amendments by consensus. An amendment to the IRWMP was completed in 2019 to maintain consistency with the state’s IRWM Plan Standards. As necessary, amendments will be incorporated into the IRWMP during the subsequent formal update.
7.2 Formal updates. Formal updates will reflect any significant changes to the IRWMP including processes, organizational structure and governance, water management conditions, or goals and objectives. The Steering Committee will provide a leadership role in guiding and coordinating the formal updates, as necessary, to ensure an inclusive and transparent decision-making process. Formal updates will include stakeholder outreach, including disadvantaged communities, to ensure that interested entities have an opportunity to participate.
7.3 Project list updates. The IRWMP includes a list of projects, submitted by proponents, such as a RWMG member agencies or stakeholder organizations, which were evaluated and included based upon each project's anticipated contribution towards meeting the goals and objectives of the IRWMP. The list of projects will be periodically updated as projects are completed and as new priorities arise. The Steering Committee is tasked with coordinating updates. The Steering Committee conducts a review of the project list no less frequently than every five years, and as needed, initiate and coordinate a publicly
Memorandum of Agreement 2024 Page 11
announced solicitation for projects. Projects may also be submitted for addition to the list during interim periods. Projects submitted will be vetted for eligibility by the Steering Committee; eligible projects will be added to the list of IRWMP Projects and incorporated into future IRWMP updates.
8. COMPLEMENTARY PROGRAMS
8.1 SUSTAINABLE GROUNDWATER MANAGEMENT ACT (SGMA)
The State of California enacted the Sustainable Groundwater Management Act (SGMA), effective January 1, 2015, as the first legislation in the state’s history to mandate comprehensive sustainable groundwater resources management. In response, two Groundwater Sustainability Agencies (GSAs) formed in the Santa Cruz IRWM Region.
The Santa Cruz Mid-County Groundwater Agency (MGA) formed in 2016 under SGMA to develop this Groundwater Sustainability Plan (GSP or Plan) for the Santa Cruz MidCounty Groundwater Basin. The MGA is Joint Powers Agreement (JPA), with four member agencies: Central Water District, City of Santa Cruz, County of Santa Cruz, and Soquel Creek Water District. The Board of Directors includes two representatives from each member agency and three private well owner representatives.
The Santa Margarita Groundwater Agency (SMGWA) formed in 2017 under SGMA to develop the GSP for the Santa Margarita Groundwater Basin. The SMGWA is a JPA among the Scotts Valley Water District, the San Lorenzo Valley Water District, and the County of Santa Cruz. The SMGWA is governed by a Board of Directors comprising two representatives from each member agency, single representatives from the City of Scotts Valley, City of Santa Cruz, and Mount Hermon Association (MHA), and two private well owners.
The respective GSPs describe how both GSAs intend to manage groundwater in their respective Basins to achieve groundwater sustainability and meet the requirements of SGMA. Both Basin Plans provide the basis for ongoing management to both achieve sustainability in the State’s required 20-year planning horizon and to maintain sustainability over the 50-year implementation horizon. By following their GSPs, the MGA and SMGWA, and their cooperating agencies, and other local stakeholders will collaboratively manage the respective Basins to maintain a safe and reliable groundwater supply for all beneficial groundwater uses and users.
The RWMF has provided administrative and planning support to the MGA since 2016 and to the SMGWA on grant related support since 2018. In 2022, following a County issued Request for Qualifications, the RWMF was awarded a contract to provide administrative and planning services to both MGA and SMGWA from 2022 - 2025.
Many of goals and objectives in the IRWMP and the GSPs in both Basins are complementary and aligned. Funding awards in IRWM grants have supported planning and technical studies that have advanced the work of member agencies participating in both Basins. The same GSA member agencies are also participating in IRWM. There are
Memorandum of Agreement 2024 Page 12
potential mutual benefits and efficiencies to be gained in the cooperation and collaboration of the agencies participating in IRWM and SGMA.
8.2 WATERSHED RESILIENCE
California’s 2023 Water Plan Update (September 2023 draft) presents a statewide vision for Watershed Resilience to be achieved via partnerships between state agencies, local agencies, organizations and stakeholders. The Plan describes the need for climate resilience planning at the watershed scale and broadly outlines a new framework for the State’s efforts to promote local collaboration at regional scales to respond to climate change risks. The Plan introduces a new Watershed Resilience program to be administered by DWR. The forthcoming program will build on existing collaborative relationships, planning, and investments to improve regional climate resilience and invest in natural and built backbone infrastructure.
The Santa Cruz Regional Water Management Group is well positioned to build upon existing collaborative programs, such as the IRWM Program and Sustainable Groundwater Management Program, to pursue funding to support multi-sector collaborations and solutions at the watershed- and regional-scale.
8.3 CLIMATE RESILIENCY
Climate change is increasingly impacting the state’s and the region’s water resources and watersheds, as evidenced by greater weather extremes, changes in rainfall and runoff patterns, sea level rise, wildfire intensity, and impacts related to water resources and watersheds. Multiple state and federal programs provide guidance, technical support, planning and assessment tools, and/or funding to public agencies and organizations to improve local adaptation and resiliency to climate change impacts.
Municipalities (County and cities), agencies and organizations in Santa Cruz County have conducted extensive planning to respond to climate change. Multiple local plans document the vulnerability, impacts, adaptations, mitigations and/or responses (e.g., municipal Climate Action Plans; County Climate Action and Adaptation Plan (CAAP); IRWM Plan; Groundwater Sustainability Plans; other).
As noted by DWR, as the impacts of climate change intensify, local water managers will need better tools to identify the adaptation strategies for their watersheds and diverse hydrology to make more-informed infrastructure investment decisions. Two steps identified by DWR to fulfill key the goals of the Governor's Water Resilience Portfolio are:
1. Develop data, tools, and guidance for watershed-based climate vulnerability and adaptation analyses.
2. Explore the formation of a California-based network of climate scientists and water management practitioners.
Regional coordination and collaboration may provide opportunities to pursue funding and other resources for studies/projects to generate better climate change information for decision-making or develop systems that are more resilient to climate change and natural
Memorandum of Agreement 2024 Page 13
disasters.
8.4 STORM WATER RESOURCE PLAN (SWRP)
The SWRP is a comprehensive document outlining regional stormwater project priorities, as well as regional stormwater permit compliance. A SWRP was completed in December 2016. Development of the SWRP was led by the County of Santa Cruz Environmental Health with contributions by staff and representatives from the City of Santa Cruz, the City of Scotts Valley, the City of Watsonville, the City of Capitola, Ecology Action, the Resource Conservation District of Santa Cruz County, and the University of California Santa Cruz. The SWRP is incorporated into the IRWM Plan as an appendix. In June 2017, the State Water Resources Control Board issued its letter of concurrence that the SWRP met the requirements of the California Water Code and the SWRP Guidelines. IRWM and SWRP efforts are aligned. The coordination of these programs offers the potential benefit of identifying and pursing funding opportunities to support planning and implementation.
9. MUTUAL UNDERSTANDINGS
9.1 Purpose of the MOA. This MOA pertains to the joint efforts of the agencies participating in the IRWM Program to increase coordination, collaboration and communication in addressing the region's water resources issues. This MOA updates and continues the efforts initiated under the prior MOA executed in 2006 and renewed in 2010/2011 and 2016.
9.2 Subject matter scope of the IRWMP. The IRWMP includes, but may not necessarily be limited to, water supply, water quality, wastewater, recycled water, water conservation, stormwater and flood management, watershed planning and habitat protection and restoration, and climate change resiliency related to water and watersheds.
9.3 Decision-making. Consensus is sought in decision-making. The Steering Committee provides a lead role in the decision-making process and coordinating input from the participating agencies. As needed, the Steering Committee ratifies decisions by majority vote. Amendments resulting in material financial implications are ratified by the RWMG.
Votes are recorded as one vote per signatory agency.
9.4 Approval of the IRWMP. IRWMP adoption occurs by adopting a resolution by each RWMG agency’s governing body. The 2014 IRWMP was adopted by all the RWMG members.
9.5 Relation to local planning efforts. The Santa Cruz IRWMP is intended to be complementary to the participating agencies’ individual plans and programs and does not supersede such plans and programs.
9.6 Termination. An agency may terminate their participation in the IRWMP effort by providing 90 calendar days written notice to the Regional Water Management Foundation.
Memorandum of Agreement 2024 Page 14
9.7 Personnel and financial resources. It is expected that agencies contribute the personnel and financial resources necessary to develop, implement and update the IRWMP and pursue complementary efforts.
9.8 Reports and communications. The Steering Committee reports regularly on IRWMP progress to the participating agencies and stakeholders. The SantaCruzlRWMP.org website is used for disseminating news, reports and updates to the participating agencies and the public.
9.9 Futureawards. In the event of future grant awards, it is expected that agreement(s) are entered into by the applicable participating agencies that establish the terms and conditions applicable to the specific grant award.
9.10 Term. This updated MOA commences as of January 1, 2024 and continues until terminated by action of a majority of the participating agencies or is superseded by a future MOA. This agreement is evaluated and reviewed no later than five years after its implementation, at which time, recommendations for improvements and modifications are considered by all parties. Any amendment or modification to this agreement must be in writing, agreed upon by a majority of all signatories, executed by the duly authorized representatives of the parties hereto, and incorporated into this agreement by reference.
10. SIGNATORIES TO THE MEMORANDUM OF AGREEMENT
We, the undersigned representatives of our respective agencies, acknowledge the above as our understanding of how the Santa Cruz Integrated Regional Water Management Plan and complementary efforts will be developed and implemented.
Each party has full power and authority to enter into and perform this MOA and the person signing this MOA on behalf of each party is authorized and empowered to enter into this MOA.
Each party further acknowledges that it has read this MOA, understands it and agrees to it.
Memorandum of Agreement 2024 Page 15
MEMORANDUM OF AGREEMENT
FOR THE SANTA CRUZ INTEGRATED REGIONAL WATER MANAGEMENT Central Water District
Signature:
Ralph Bracamonte, General Manager
Date:
City of Capitola
Signature:
Jamie Goldstein, City Manager
Date:
City of Santa Cruz
Signature:
Matt Huffaker, City Manager
Date:
Memorandum of Agreement 2024 Page 16
MEMORANDUM OF AGREEMENT
FOR THE SANTA CRUZ INTEGRATED REGIONAL WATER MANAGEMENT City of Scotts Valley
Signature:
Mali LaGoe, City Manager
Date:
City of Watsonville
Signature:
René Mendez, City Manager
Date:
County of Santa Cruz
Signature:
Carlos Palacios, County Administrative Officer
Date:
Memorandum of Agreement 2024 Page 17
MEMORANDUM OF AGREEMENT
FOR THE SANTA CRUZ INTEGRATED REGIONAL WATER MANAGEMENT County of Santa Cruz Sanitation
District
Signature:
Matt Machado, Director of Public Works
Date:
Davenport County Sanitation District
(County of Santa Cruz)
Signature:
Matt Machado, Director of Public Works
Date:
Resource Conservation District of
Santa Cruz County
Signature:
Lisa Lurie, Executive Director
Date:
Memorandum of Agreement 2024 Page 18
MEMORANDUM OF AGREEMENT
FOR THE SANTA CRUZ INTEGRATED REGIONAL WATER MANAGEMENT San Lorenzo Valley Water District
Signature:
Brian Frus, Interim General Manager
Date:
Scotts Valley Water District
Signature:
David McNair, General Manager
Date:
Soquel Creek Water District
Signature:
Ron Duncan, General Manager
Date:
Memorandum of Agreement 2024 Page 19
MEMORANDUM OF AGREEMENT
FOR THE SANTA CRUZ INTEGRATED REGIONAL WATER MANAGEMENT Santa Cruz Mid-County
Groundwater Agency
Signature:
Board Chair
Date:
Santa Margarita Groundwater
Agency
Signature:
Board Chair
Date:
Regional Water Management
Foundation
Signature:
John Ricker, Board President
Date:
2/8/2024 7:02:38 PM
C:\Program Files\eSCRIBE\TEMP\1923556075\1923556075,,,Report - Amend Reso No. 6-23 Modifying Grantee .docx Agenda Report
MEETING DATE: Saturday, February 10, 2024
TO: City Council
FROM: PUBLIC WORKS & UTILITIES DIRECTOR LINDBERG
ENVIRONMENTAL SUSTAINABILITY MANAGER MCCLOUD
THROUGH: CITY MANAGER MENDEZ
SUBJECT: AMEND RESOLUTION NO. 6-23 (CM) TO REFLECT CORRECT
GRANTEE AGENCY
RECOMMENDED ACTION:
Authorize the amendment of Resolution No. 6-23 (CM) to correct language from grantee "Santa Cruz Integrated Regional Water Management Group" to "Regional Water Management Foundation".
BACKGROUND:
“The Santa Cruz Integrated Regional Water Management (IRWM) program provides a framework for local stakeholders to manage this region’s water and water-related resources. The Santa Cruz IRWM Plan was developed in response to California’s IRWM planning initiative to promote an informed, locally driven, and consensus-based approach to water resources management. The IRWM Plan includes strategies for developing and implementing policies and projects to ensure sustainable water use, reliable water supply, better water quality, improved flood protection and stormwater management, and environmental stewardship.” (www.santacruzirwmp.org ) The City of Watsonville is a collaborating member agency in the Santa Cruz Integrated Regional Water Management Group. Through this participation the city has had opportunities to apply for and be awarded funding for priority projects located throughout the city.
The City of Watsonville is partnering with Watsonville Wetlands Watch and MidPen Housing and was awarded a Santa Cruz Integrated Regional Water Management Proposition 1, Round 2 Implementation Project grant for the Atkinson Lane Integrated Flood Management and Watershed Restoration Project in the amount of $545,000.
This project will improve habitat and minimize localized flooding in the city.
2/8/2024 7:02:38 PM
C:\Program Files\eSCRIBE\TEMP\1923556075\1923556075,,,Report - Amend Reso No. 6-23 Modifying Grantee .docx DISCUSSION:
To execute the Local Project Sponsor Agreement approved by the City Council on January 17, 2023, Resolution No. 6-23 requires an amendment to accurately identify the grantee. When City staff drafted the original staff report and resolution, staff incorrectly identified the grantee as the “Santa Cruz Integrated Regional Management Group.” The grantee is the “Regional Water Management Foundation.” Once Resolution No. 6-23 is amended, the City can accept the grant award of $545,000 for the Atkinson Lane Integrated Flood Management and Watershed Restoration Project.
STRATEGIC PLAN:
The proposed Atkinson Lane Integrated Flood Management and Watershed Restoration Project is consistent with the following Strategic Plan Goals:
2-Infrastructure & Environment
6-Community Engagement & Well-Being
FINANCIAL IMPACT:
The City has no match requirement for the grant award of $545,000. The funds would be appropriated to the Special Grants Account.
ALTERNATIVE ACTION:
The City could not amend the resolution and would not be eligible to execute the Local Project Sponsor Agreement for grant award.
ATTACHMENTS AND/OR REFERENCES (If any):
1. Resolution No. 6-23 (CM)
2. Department of Water Resources Executed Agreement
3. Regional Water Management Foundation Local Project Sponsor Agreement.
Reso No. 6-23 (CM)
Meeting Date: 01/17/23
1 RESOLUTION NO. 6-23 (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE AUTHORIZING THE CITY MANAGER TO APPLY FOR,
NEGOTIATE, AND EXECUTE A GRANT AGREEMENT AS THE LOCAL
PROJECT SPONSOR WITH THE SANTA CRUZ INTEGRATED
REGIONAL WATER MANAGEMENT GROUP, FOR THE ATKINSON
LANE INTEGRATED FLOOD MANAGEMENT AND WATERSHED
RESTORATION PROJECT IN THE AMOUNT OF $545,000;
AUTHORIZING AND DIRECTING THE CITY MANGER TO EXECUTE
SAME, AND IF AWARDED, APPROPRIATING SUCH FUNDS TO THE
SPECIAL GRANTS FUND
WHEREAS, the City of Watsonville is a collaborating member agency in the Santa Cruz Integrated Regional Water Management Group.
WHEREAS, through this participation the City has had opportunities to apply for and be awarded funding for priority projects located throughout the City; and WHEREAS, the City of Watsonville is partnering with Watsonville Wetlands Watch and MidPen Housing to apply for a Santa Cruz Integrated Regional Water Management Proposition 1, Round 2 Implementation Project for the Atkinson Lane Integrated Flood Management and Watershed Restoration Project in the amount of $545,000, in order to improve and minimize localized flooding in the City;
WHEREAS, the proposed project will be built within the Atkinson Wetland complex that lies between two housing developments that are designated as affordable housing developments for farmworkers and others with supportive housing needs, including those transitioning from homelessness;
WHEREAS, the location of the proposed project adjacent to this housing development provides a unique opportunity to engage the local youth and the Watsonville community in the enhancement of the wetlands complex in support of the project outcomes, while providing much needed flood risk reduction and water quality benefits to the surrounding;
DocuSign Envelope ID: 6080A176-504C-45D8-AB6C-1A50659102E6 5407 Attachment 1
Reso No. 6-23 (CM)
Meeting Date: 01/17/23
2 WHEREAS, the City doesn’t have a match requirements for this grant. The fund, if awarded, would be appropriated to the Special Grants Fund and reimbursed by Santa Cruz Integrated Regional Management Group; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. Approval of the grant application 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.) because approval of a grant application is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment. If approval of the grant application is determined to be subject to review under CEQA, it 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. Approval of the grant application is also categorically exempt pursuant to Class 6 (Information Collection) Categorical exemption (14 Cal. Code Regs. § 15306).
2. That the City Manager is hereby authorized and directed to apply, negotiate, execute, a grant agreement as a Local Project Sponsor with the Santa Cruz Integrated Regional Water Management Group for the Atkinson Lane Integrated Flood Management and Watershed Restoration Project in the amount of $545,000.
3. That the City Manager of the City of Watsonville is hereby authorized and directed, if said Grant is awarded, to appropriate $545,000 to the Special Grants Fund [0260].
**************************************
DocuSign Envelope ID: 6080A176-504C-45D8-AB6C-1A50659102E6 ----
Attachment 1
Reso No. 6-23 (CM)
Meeting Date: 01/17/23
3 The foregoing resolution was introduced at a regular meeting of the Council of the City of Watsonville, held on the 17th day of January , 2023, by Member Parker , who moved its adoption, which motion being duly seconded by Mayor Montesino , was upon roll call carried and the resolution adopted by the following vote:
AYES: COUNCIL MEMBERS: Clark, Dutra, Orozco, Parker, QuirozCarter, Montesino NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Salcido
____________________________
Eduardo Montesino, 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. 6-23 (CM) was duly and regularly passed and adopted by the Watsonville City Council at a meeting thereof held on the 17th day of January , 2023, and that the foregoing is a full, true and correct copy of said Resolution. ________________________________
Irwin I. Ortiz, City Clerk
Date__________________________
DocuSign Envelope ID: 6080A176-504C-45D8-AB6C-1A50659102E6 1/25/2023 | 4:23 PM PST
1/25/2023 | 4:23 PM PST
~ OocuSigned by:
~:~ ~
~ cuSigned by:
68FEQ
Attachment 1
GRANT AGREEMENT BETWEEN THE STATE OF CALIFORNIA
(DEPARTMENT OF WATER RESOURCES) AND
REGIONAL WATER MANAGEMENT FOUNDATION
AGREEMENT NUMBER 4600015400
PROPOSITION 1 ROUND 2 INTEGRATED REGIONAL WATER MANAGEMENT (IRWM)
IMPLEMENTATION GRANT
THIS GRANT AGREEMENT is entered into by and between the Department of Water Resources of the State of California, herein referred to as the "State" or “DWR,” and the Regional Water Management Foundation, a non-profit in the State of California, duly organized, existing, and acting pursuant to the laws thereof, herein referred to as the "Grantee," which parties do hereby agree as follows:
1) PURPOSE. The State shall provide funding from the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Proposition 1) to the Grantee to assist in financing the projects, which are included in and implemented in an adopted Integrated Regional Water Management Plan (IRWM Plan), pursuant to Chapter 7. Regional Water Security, Climate, and Drought Preparedness (Wat. Code, § 79740 et seq.). The provision of State funds pursuant to this Agreement shall be construed or interpreted to mean that the IRWM Plan, or any components of the IRWM Plan, implemented in accordance with the Work Plan as set forth in Exhibit A, has been adopted through the IRWM Plan Review Process, and is/are consistent with Water Code section 10530 et seq.
2) TERM OF GRANT AGREEMENT. The term of this Grant Agreement begins on May 6, 2023, through final payment plus three (3) years unless otherwise terminated or amended as provided in this Grant Agreement. However, all work shall be completed by December 31, 2027, in accordance with the Schedule as set forth in Exhibit C and no funds may be requested after March 31, 2028. 3) GRANT AMOUNT. The maximum amount payable by the State under this Grant Agreement shall not exceed $2,557,275.
4) GRANTEE COST SHARE. The Grantee is required to provide a Local Cost Share (non-state funds) as set forth in Exhibit B (Budget). Local Cost Share may include Eligible Project Costs directly related to Exhibit A incurred after January 1, 2015.
5) BASIC CONDITIONS. The State shall have no obligation to disburse money for the Project(s) under this Grant Agreement until the Grantee has satisfied the following conditions (if applicable):
A. The Grantee shall demonstrate compliance with all eligibility criteria as set forth on pages 9-11, inclusive, of the 2022 IRWM Grant Program Guidelines (2022 Guidelines).
B. For the term of this Agreement, the Grantee shall submit Quarterly Progress Reports which must accompany an invoice ($0 Invoices are acceptable) and all invoice backup documentation. The Quarterly Progress Report shall be submitted within 60 days following the end of the calendar quarter (i.e., reports due May 30, August 29, November 29, and March 1) and all other deliverables as required by Paragraph 14, “Submission of Reports” and Exhibit A, “Work Plan”.
C. Prior to the commencement of construction or implementation activities, if applicable, the Grantee shall submit the following to the State.
i. Final plans and specifications certified, signed and stamped by a California Registered Civil Engineer (or equivalent registered professional as appropriate) to certify compliance for each approved project as listed in Exhibit A of this Grant Agreement. ii. Work that is subject to the California Environmental Quality Act (CEQA) (including final land purchases) shall not proceed under this Grant Agreement until the following actions are performed:
a) The Grantee submits to the State all applicable permits, as indicated on the Environmental Information Form to the State,
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
b) All documents that satisfy the CEQA process are received by the State, c) The State has completed its CEQA process as a Responsible Agency, and d) The Grantee receives written notification from the State of concurrence with the Lead Agency’s CEQA documents (s) and State’s notice of verification of permit submittal.
The State’s concurrence of Lead Agency’s CEQA documents is fully discretionary and shall constitute a condition precedent to any work (i.e., construction or implementation activities) for which it is required. Once CEQA documentation has been completed, the State will consider the environmental documents and decide whether to continue to fund the project, or to require changes, alterations, or other mitigation. Proceeding with work subject to CEQA prior to the State’s concurrence shall constitute a material breach of this Agreement. The Grantee or Local Project Sponsor (LPS) shall also demonstrate that it has complied with all applicable requirements of the National Environmental Policy Act (NEPA) by submitting copies of any environmental documents, including Environmental Impact Statements, Finding of No Significant Impact, mitigation monitoring programs, and environmental permits as may be required prior to beginning construction/ implementation. iii. A monitoring plan as required by Paragraph 16, “Monitoring Plan Requirements,” if applicable. 6) DISBURSEMENT OF FUNDS. The State will disburse to the Grantee the amount approved, subject to the availability of funds through normal State processes. Notwithstanding any other provision of this Grant Agreement, no disbursement shall be required at any time or in any manner which is in violation of, or in conflict with, federal or state laws, rules, or regulations, or which may require any rebates to the federal government, or any loss of tax-free status on state bonds, pursuant to any federal statute or regulation.
Any and all money disbursed to the Grantee under this Grant Agreement shall be deposited in a noninterest-bearing account and shall be used solely to pay Eligible Project Costs. 7) ELIGIBLE PROJECT COST. The Grantee shall apply State funds received only to Eligible Project Costs in accordance with applicable provisions of the law and Exhibit B, “Budget”. Eligible Project Costs include the reasonable costs of studies, engineering, design, land and easement acquisition and associated legal fees, preparation of environmental documentation, environmental mitigations, monitoring, and project construction. Reimbursable administrative expenses are the necessary costs incidental but directly related to the Project included in this Agreement. Costs incurred after May 5, 2023, may be eligible for reimbursement.
Costs that are not eligible for reimbursement include, but are not limited to, the following items:
A. Costs, other than those noted above, incurred prior to the award date of this Grant.
B. Costs for preparing and filing a grant application.
C. Operation and maintenance costs, including post construction performance and monitoring costs.
D. Purchase of equipment that is not an integral part of a project.
E. Establishing a reserve fund.
F. Purchase of water supply.
G. Replacement of existing funding sources (e.g., bridge loans).
H. Meals, food items, or refreshments.
I. Payment of any punitive regulatory agency requirement, federal or state taxes.
J. Purchase of land in excess of the minimum required acreage necessary to operate as an integral part of a project, as set forth and detailed by engineering and feasibility studies, or acquisition of land by eminent domain.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
K. Indirect Costs. “Indirect Costs” means those costs that are incurred for a common or joint purpose benefiting more than one cost objective and are not readily assignable to the funded project (i.e., costs that are not directly related to the funded project). Examples of Indirect Costs include, but are not limited to: central service costs; general administration of the Grantee or LPSs; non-project-specific accounting and personnel services performed within the Grantee’s or LPS’ organization; depreciation or use allowances on buildings and equipment; the costs of operating and maintaining non-projectspecific facilities; tuition and conference fees; forums, trainings, and seminars; and, generic overhead or markup. This prohibition applies to the Grantee, LPSs, and any subcontract or sub-agreement for work on the Project that will be reimbursed pursuant to this Agreement.
L. Mitigation for environmental impacts not resulting from implementation of the Project funded by this program.
M. Costs incurred as part of any necessary response and cleanup activities required under the Comprehensive Environmental Response, Compensation, and Liability Act; Resource Conservation and Recovery Act; Hazardous Substances Account Act; or other applicable law. 8) METHOD OF PAYMENT. After the disbursement requirements in Paragraph 5, “Basic Conditions” are met, the State will disburse the whole or portions of State funding to the Grantee, following receipt from the Grantee of an electronic invoice certified and transmitted via electronic/digital signature system (e.g., DocuSign) or via US mail or Express mail delivery of a “wet signature” for costs incurred, including Local Cost Share, and timely Quarterly Progress Reports as required by Paragraph 14, “Submission of Reports.” Payment will be made no more frequently than quarterly, in arrears, upon receipt of an invoice bearing the Grant Agreement number. Quarterly Progress Report must accompany an invoice ($0 Invoices are acceptable) and shall be submitted within 60 days following the end of the calendar quarter (i.e. invoices due May 30, August 29, November 29, and March 1). The State will notify the Grantee, in a timely manner, whenever, upon review of an invoice, the State determines that any portion or portions of the costs claimed are not eligible costs or is not supported by documentation or receipts acceptable to the State. The Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional documentation to the State to cure such deficiency(ies). If the Grantee fails to submit adequate documentation curing the deficiency(ies), the State will adjust the pending invoice by the amount of ineligible or unapproved costs.
Invoices submitted by the Grantee shall include the following information:
A. Costs incurred for work performed in implementing the Project during the period identified in the particular invoice.
B. Costs incurred for any interests in real property (land or easements) that have been necessarily acquired for a project during the period identified in the particular invoice for the implementation of a project.
C. Invoices shall be submitted on forms provided by the State and shall meet the following format requirements:
i. Invoices shall contain the date of the invoice, either the time period covered by the invoice or the invoice date received within the time period covered, and the total amount due. ii. Invoices shall be itemized based on the categories (i.e., tasks) specified in Exhibit B, “Budget.” The amount claimed for salaries/wages/consultant fees shall include a calculation formula (i.e., hours or days worked times the hourly or daily rate = the total amount claimed). iii. One set of sufficient evidence (i.e., receipts, copies of checks, personnel hours’ summary table, time sheets) shall be provided for all costs included in the invoice. iv. Each invoice shall clearly delineate those costs claimed for reimbursement from the State’s funding amount, as depicted in Paragraph 3, “Grant Amount” and those costs that represent the Grantee’s costs, as applicable, in Paragraph 4, “Grantee Cost Share.” DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
v. Original signature and date of the Grantee’s Project Representative. Submit an electronic invoice, certified and transmitted via electronic/digital signature system (e.g., DocuSign), from authorized representative to the Project Manager or the original “wet signature” copy of the invoice form to the Project Manager at the following address: P.O. Box 942836 Sacramento, CA 94236.
All invoices submitted shall be accurate and signed under penalty of law. Any and all costs submitted pursuant to this Agreement shall only be for the tasks set forth herein. The Grantee shall not submit any invoice containing costs that are ineligible or have been reimbursed from other funding sources unless required and specifically noted as such (i.e., cost share). Any eligible costs for which the Grantee is seeking reimbursement shall not be reimbursed from any other source. Double or multiple billing for time, services, or any other eligible cost is illegal and constitutes fraud. Any suspected occurrences of fraud, forgery, embezzlement, theft, or any other misuse of public funds may result in suspension of disbursements of grant funds and/or termination of this Agreement requiring the repayment of all funds disbursed hereunder plus interest. Additionally, the State may request an audit pursuant to Standard Condition D.5 and refer the matter to the Attorney General’s Office or the appropriate district attorney’s office for criminal prosecution or the imposition of civil liability. (Civ. Code, §§ 1572-1573; Pen. Code, §§ 470, 487-489.)
9) ADVANCED PAYMENT. Water Code section 10551 authorizes advanced payment by the State for projects included and implemented in an applicable Integrated Regional Water Management Plan, and when the project proponent is a nonprofit organization; a disadvantaged community (DAC); or the project benefits a DAC. If a project is awarded less than $1,000,000 in grant funds, the project proponent may receive an advanced payment of fifty (50) percent of the grant award; the remaining fifty (50) percent of the grant award will be reimbursed in arrears after the advanced funds of a budget category have been fully expended. Within ninety (90) calendar days of execution of the Grant Agreement, the Grantee may provide the State an Advanced Payment Request. Advanced Payment Requests received ninety-one (91) calendar days after the execution of this Agreement will not be eligible to receive an advanced payment.
The Advanced Payment Request shall contain the following:
A. Documentation demonstrating that each Local Project Sponsor (if different from the Grantee, as listed in Exhibit I) was notified about their eligibility to receive an advanced payment and a response from the Local Project Sponsor stating whether it wishes to receive the advanced payment or not.
B. If the Grantee is requesting the advanced payment, the request(s) shall include:
i. Descriptive information of each project with an update on project status. ii. The names of the entities that will receive the funding for each project, including, but not limited to, an identification as to whether the project proponent or proponents are nonprofit organizations or a DAC, or whether the project benefits a DAC.
iii. A detailed Funding Plan which includes how the advanced payment will be expended (in terms of workplan, budget, and schedule) within the timeframe agreed upon by DWR and the Grantee. The Funding Plan must clearly identify the total budget (at Budget Category Level) for each project clearly showing the portion of advanced payment and reimbursement funds. iv. Any other information that DWR may deem necessary.
C. Upon review and approval of the Advanced Payment Request, DWR will authorize payment of the fully requested amount for the qualified project(s). Based on the project’s Funding Plan and other considerations, DWR may determine it is not prudent to advance the full request in a single disbursement. In such a case, DWR will develop a “Disbursement Schedule,” to disburse funds in installments. This Disbursement Schedule may change based on the project’s ongoing compliance with the Advanced Payment requirements and the project’s cash flow needs.
D. Once DWR authorizes the Advanced Payment Request, the Grantee shall submit Advanced Payment Invoice(s) for the initial amount based on the “Disbursement Schedule” on behalf of the LPS(s), DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
containing the request for each qualified project, to the State with signature and date of the Grantee’s Project Representative, as indicated in Paragraph 21, “Project Representative.” The Grantee shall be responsible for the timely distribution of the advanced funds to the respective LPS(s). The Advanced Payment Invoice(s) shall be submitted on forms provided by the State and shall meet the following format requirements:
i. Invoice shall contain the date of the invoice, the time period covered by the invoice, and the total amount due.
ii. Invoice shall be itemized based on the budget categories specified in Exhibit B, “Budget.” iii. The State Project Manager will notify the Grantee, in a timely manner, when, upon review of an Advance Payment Invoice, the State determines that any portion or portions of the costs claimed are not eligible costs. The Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional documentation to cure such deficiency(ies). iv. On a quarterly basis, the Grantee will submit an Accountability Report to the State that demonstrates how actual expenditures compare with the scheduled budget. The Accountability Report shall include the following information:
1. An itemization of how advanced funds have been spent to-date (Expenditure Report), including documentation that supports the disbursements (e.g., contractor invoices, receipts, personnel hours, etc.). Accountability Reports shall be itemized based on the budget categories (i.e., tasks) specified in Exhibit B.
2. An updated Accountability Report including an updated Funding Plan that depicts how the remaining advanced funds will be expended and the activities and deliverables associated with the advanced funds within the timeframe agreed upon by DWR and the Grantee when the advanced payment request was approved.
3. Documentation that the funds were placed in a non-interest bearing account, including the dates of deposits and withdrawals from that account.
4. Proof of distribution of advanced funds to LPS(s), if applicable. v. The State’s Project Manager will notify the Grantee, in a timely manner, when, upon review of the Accountability Report, the State determines that any portion of the expenditures claimed are not eligible costs. The Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional documentation to cure such deficiency(ies). If costs are not consistent with the tasks in Exhibit A, the State will reject the claim and remove them from the Accountability Report.
E. Once the Grantee has spent all advanced funds in a budget category, then the method of payment will revert to the reimbursement process for that budget category specified in Paragraph 8, “Method of Payment for Reimbursement.”
10) REPAYMENT OF ADVANCES. The State may demand repayment from the Grantee of all or any portion of the advanced State funding along with interest at the California general obligation bond interest rate at the time the State notifies the Grantee, as directed by the State, and take any other action that it deems necessary to protect its interests for the following conditions:
A. A project is not being implemented in accordance with the provisions of the Grant Agreement.
B. The Grantee has failed in any other respect to comply with the provisions of this Grant Agreement, and if the Grantee does not remedy any such failure to the State’s satisfaction.
C. Failure by the Grantee to submit complete and accurate quarterly Accountability Reports by the required due dates, unless otherwise approved by DWR.
D. Failure to deposit funds in a non-interest-bearing account.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
E. Use of Advance Payment funds for ineligible expenses and/or activities not consistent with this Agreement.
F. Inappropriate use of funds, as deemed by DWR.
G. Repayment amounts may also include:
i. Actual costs incurred which are not consistent with the activities presented in Exhibit A, not supported, or are ineligible.
ii. Advanced funds which are not fully expended by project completion, notwithstanding Water Code section 10551(c)(4). Unused grant funds shall be returned to DWR within sixty (60) calendar days.
Any repayment of advanced funds may consist of reducing the amount from future reimbursement invoices. The State may consider the Grantee’s refusal to repay the requested advanced amount a material breach of this Agreement subject to the default provisions in Paragraph 12, “Default Provisions.” If the State notifies the Grantee of its decision to demand repayment or withhold the entire funding amount from the Grantee pursuant to this Paragraph, this Grant Agreement shall terminate upon receipt of such notice by the Grantee and the State shall no longer be required to provide funds under this Agreement. 11) WITHHOLDING OF DISBURSEMENTS BY THE STATE. If the State determines that a project is not being implemented in accordance with the provisions of this Grant Agreement, or that the Grantee has failed in any other respect to comply with the provisions of this Grant Agreement, and if the Grantee does not remedy any such failure to the State’s satisfaction, the State may withhold from the Grantee all or any portion of the State funding and take any other action that it deems necessary to protect its interests.
Where a portion of the State funding has been disbursed to the Grantee and the State notifies the Grantee of its decision not to release funds that have been withheld pursuant to Paragraph 12, “Default Provisions,” the portion that has been disbursed shall thereafter be repaid immediately with interest at the California general obligation bond interest rate at the time the State notifies the Grantee, as directed by the State. The State may consider the Grantee’s refusal to repay the requested disbursed amount a material breach subject to the default provisions in Paragraph 12, “Default Provisions.” If the State notifies the Grantee of its decision to withhold the entire funding amount from the Grantee pursuant to this Paragraph, this Grant Agreement shall terminate upon receipt of such notice by the Grantee and the State shall no longer be required to provide funds under this Grant Agreement and the Grant Agreement shall no longer be binding on either party.
12) DEFAULT PROVISIONS. The Grantee shall be in default under this Grant Agreement if any of the following occur:
A. Substantial breaches of this Grant Agreement, or any supplement or amendment to it, or any other Agreement between the Grantee and the State evidencing or securing the Grantee’s obligations.
B. Making any false warranty, representation, or statement with respect to this Grant Agreement or the application filed to obtain this Grant Agreement.
C. Failure to operate or maintain the Project in accordance with this Grant Agreement.
D. Failure to make any remittance required by this Grant Agreement, including any remittance recommended as the result of an audit conducted pursuant to Standard Condition D.5.
E. Failure to submit quarterly progress reports pursuant to Paragraph 5.
F. Failure to routinely invoice the State pursuant to Paragraph 8.
G. Failure to meet any of the requirements set forth in Paragraph 13, “Continuing Eligibility.” Should an event of default occur, the State shall provide a notice of default to the Grantee and shall give the Grantee at least ten (10) calendar days to cure the default from the date the notice is sent via firstclass mail to the Grantee. If the Grantee fails to cure the default within the time prescribed by the State, the State may do any of the following:
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
A. Declare the funding be immediately repaid, with interest, which shall be equal to State of California general obligation bond interest rate in effect at the time of the default.
B. Terminate any obligation to make future payments to the Grantee.
C. Terminate the Grant Agreement.
D. Take any other action that it deems necessary to protect its interests.
In the event the State finds it necessary to enforce this provision of this Grant Agreement in the manner provided by law, the Grantee agrees to pay all costs incurred by the State including, but not limited to, reasonable attorneys' fees, legal expenses, and costs.
13) CONTINUING ELIGIBILITY. The Grantee shall meet the following ongoing requirement(s) and all eligibility criteria outlined in the 2022 Guidelines to remain eligible to receive State funds:
A. An urban water supplier that receives grant funds pursuant to this Agreement shall maintain compliance with the Urban Water Management Planning Act (UWMP; Wat. Code, § 10610 et seq.) and Sustainable Water Use and Demand Reduction (Wat. Code, § 10608 et seq.) as set forth on page 11 of the 2022 Guidelines and as stated on page 24 of the 2022 IRWM Implementation Grant Proposal Solicitation Package.
B. An agricultural water supplier receiving grant funds shall comply with Sustainable Water Use and Demand Reduction requirements outlined in Water Code section 10608, et seq. and have their Agricultural Water Management Plan (AWMP) deemed consistent by DWR. To maintain eligibility and continue funding disbursements, an agricultural water supply shall have their 2015 AWMP identified on the State’s website. For more information, visit the website listed in Appendix A in the 2022 Guidelines.
C. A surface water diverter receiving grant funds shall maintain compliance with diversion reporting requirements as outlined in Water Code section 5100 et. seq.
D. If applicable, the Grantee shall demonstrate compliance with the Sustainable Groundwater Management Act (SGMA) set forth on page 10 of the 2022 Guidelines.
E. If the Grantee has been designated as a monitoring entity under the California Statewide Groundwater Elevation Monitoring (CASGEM) Program, the Grantee shall maintain reporting compliance, as required by Water Code section 10932 and the CASGEM Program.
F. The Grantee shall adhere to the protocols developed pursuant to The Open and Transparent Water Data Act (Wat. Code, § 12406, et seq.) for data sharing, transparency, documentation, and quality control.
G. On March 4, 2022, the Governor issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. The EO may be found at:
https://www.gov.ca.gov/wp-content/uploads/2022/03/3.4.22-Russia-Ukraine-Executive-Order.pdf. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under State law. The EO directs DWR to terminate funding agreements with, and to refrain from entering any new agreements with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the State determine that the Grantee is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this Agreement. The State shall provide the Grantee advance written notice of such termination, allowing the Grantee at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State.
14) SUBMISSION OF REPORTS. The submittal and approval of all reports is a requirement for the successful completion of this Grant Agreement. Reports shall meet generally accepted professional standards for technical reporting and shall be proofread for content, numerical accuracy, spelling, and grammar prior to DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
submittal to the State. All reports shall be submitted to the State’s Project Manager and shall be submitted via the DWR “Grant Review and Tracking System” (GRanTS). If requested, the Grantee shall promptly provide any additional information deemed necessary by the State for the approval of reports. Reports shall be presented in the formats described in the applicable portion of Exhibit F, “Report Formats and Requirements.” The timely submittal of reports is a requirement for initial and continued disbursement of State funds. Submittal and subsequent approval by the State of a Project Completion Report is a requirement for the release of any funds retained for such project.
A. Quarterly Progress Reports: The Grantee shall submit quarterly Progress Reports to meet the State’s requirement for disbursement of funds. Progress Reports shall be uploaded via GRanTS, and the State’s Project Manager notified of upload. Progress Reports shall, in part, provide a brief description of the work performed, the Grantee’s activities, milestones achieved, any accomplishments and any problems encountered in the performance of the work under this Grant Agreement during the reporting period. The first Progress Report must accompany an invoice ($0 Invoices are acceptable) and shall be submitted within 60 days following the end of the calendar quarter (i.e. invoices due May 30, August 29, November 29, and March 1).
B. Accountability Report: The Grantee shall prepare and submit to the State an Accountability Report on a quarterly basis if the Grantee received an advanced payment, consistent with the provisions in Paragraph 9, “Advanced Payment.”
C. Project Completion Report: The Grantee shall prepare and submit to the State a separate Project Completion Report for each project included in Exhibit A. The Grantee shall submit a Project Completion Report (or a Component Completion Report, if a Project has multiple Components) within ninety (90) calendar days of Project/Component completion as outlined in Exhibit F.
D. Grant Completion Report: Upon completion of all the Projects included in Exhibit A, the Grantee shall submit to the State a Grant Completion Report. The Grant Completion Report shall be submitted within ninety (90) calendar days of submitting the Completion Report for the final project to be completed under this Grant Agreement, as outlined in Exhibits A, and F. Retention for any grant administration line items in the Budget of this Grant Agreement will not be disbursed until the Grant Completion Report is approved by the State.
E. Post-Performance Reports: The Grantee shall prepare and submit to the State Post-Performance Reports for the applicable project(s). Post-Performance Reports shall be submitted to the State within ninety (90) calendar days after the first operational year of a project has elapsed. This record keeping and reporting process shall be repeated annually for a total of three (3) years after the project begins operation.
15) OPERATION AND MAINTENANCE OF PROJECT. For the useful life of construction and implementation projects and in consideration of the funding made by the State, the Grantee agrees to ensure or cause to be performed the commencement and continued operation of the project, and shall ensure or cause the project to be operated in an efficient and economical manner; shall ensure all repairs, renewals, and replacements necessary to the efficient operation of the same are provided; and shall ensure or cause the same to be maintained in as good and efficient condition as upon its construction, ordinary and reasonable wear and depreciation excepted. The State shall not be liable for any cost of such maintenance, management, or operation. The Grantee or their successors may, with the written approval of the State, transfer this responsibility to use, manage, and maintain the property. For purposes of this Grant Agreement, “useful life” means period during which an asset, property, or activity is expected to be usable for the purpose it was acquired or implemented; “operation costs” include direct costs incurred for material and labor needed for operations, utilities, insurance, and similar expenses, and “maintenance costs” include ordinary repairs and replacements of a recurring nature necessary for capital assets and basic structures and the expenditure of funds necessary to replace or reconstruct capital assets or basic structures. Refusal by the Grantee to ensure operation and maintenance of the projects in accordance with this provision may, at the option of the State, be considered a breach of this Grant Agreement and may be treated as default under Paragraph 12, “Default Provisions.” DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
16) MONITORING PLAN REQUIREMENTS. A Monitoring Plan shall be submitted to the State prior to disbursement of State funds for construction or monitoring activities. The Monitoring Plan should incorporate Post-Performance Monitoring Report requirements as defined and listed in Exhibit F, and follow the guidance provided in Exhibit L, “Project Monitoring Plan Guidance.” 17) STATEWIDE MONITORING REQUIREMENTS. The Grantee shall ensure that all groundwater projects and projects that include groundwater monitoring requirements are consistent with the Groundwater Quality Monitoring Act of 2001 (Water Code § 10780 et seq.) and, where applicable, that projects that affect water quality shall include a monitoring component that allows the integration of data into statewide monitoring efforts, including where applicable, the Surface Water Ambient Monitoring Program carried out by the State Water Resources Control Board. See Exhibit G for web links and information regarding other State monitoring and data reporting requirements.
18) NOTIFICATION OF STATE. The Grantee shall promptly notify the State, in writing, of the following items:
A. Events or proposed changes that could affect the scope, budget, or work performed under this Grant Agreement. The Grantee agrees that no substantial change in the scope of a project will be undertaken until written notice of the proposed change has been provided to the State and the State has given written approval for such change. Substantial changes generally include changes to the scope of work, schedule or term, and budget.
B. Any public or media event publicizing the accomplishments and/or results of this Grant Agreement and provide the opportunity for attendance and participation by the State’s representatives. The Grantee shall make such notification at least fourteen (14) calendar days prior to the event.
C. Discovery of any potential archaeological or historical resource. Should a potential archaeological or historical resource be discovered during construction, the Grantee agrees that all work in the area of the find shall cease until a qualified archaeologist has evaluated the situation and made recommendations regarding preservation of the resource, and the State has determined what actions should be taken to protect and preserve the resource. The Grantee agrees to implement appropriate actions as directed by the State.
D. The initiation of any litigation or the threat of litigation against the Grantee or an LPS regarding the Project or which may affect the Project in any way.
E. Applicable to construction projects only: Final inspection of the completed work on a project by a Registered Professional (Civil Engineer, Engineering Geologist, or other State approved certified/licensed Professional), in accordance with Exhibit D. The Grantee shall notify the State’s Project Manager of the inspection date at least fourteen (14) calendar days prior to the inspection in order to provide the State the opportunity to participate in the inspection. 19) NOTICES. Any notice, demand, request, consent, or approval that either party desires or is required to give to the other party under this Grant Agreement shall be in writing. Notices may be transmitted by any of the following means:
A. By delivery in person.
B. By certified U.S. mail, return receipt requested, postage prepaid.
C. By “overnight” delivery service, provided that next-business-day delivery is requested by the sender.
D. By electronic means.
E. Notices delivered in person will be deemed effective immediately on receipt (or refusal of delivery or receipt). Notices sent by certified mail will be deemed effective given ten (10) calendar days after the date deposited with the U.S. Postal Service. Notices sent by overnight delivery service will be deemed effective one business day after the date deposited with the delivery service. Notices sent electronically will be effective on the date of transmission, which is documented in writing. Notices DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
shall be sent to the addresses listed below. Either party may, by written notice to the other, designate a different address that shall be substituted for the one below. 20) PERFORMANCE EVALUATION. Upon completion of this Grant Agreement, the Grantee’s performance will be evaluated by the State and a copy of the evaluation will be placed in the State file and a copy sent to the Grantee.
21) PROJECT REPRESENTATIVES. The Project Representatives during the term of this Grant Agreement are as follows:
Department of Water Resources Regional Water Management Foundation Arthur Hinojosa
Manager, Division of Regional Assistance
P.O. Box 942836
Sacramento, CA 94236
Phone: (916) 902-6713
Email: [email protected]
John Ricker
President
7807 Soquel Dr.
Aptos, CA 95003
Phone: (831) 662-2000
Email: [email protected]
Direct all inquiries to the Project Manager:
Department of Water Resources Regional Water Management Foundation Charles Polc
Environmental Scientist
P.O. Box 942836
Sacramento, CA 94236
Phone: (916) 326-9137
Email: [email protected]
Tim Carson
Program Director
7807 Soquel Dr.
Aptos, CA 95003
Phone: (831)) 662-2050
Email: [email protected]
Either party may change its Project Representative or Project Manager upon written notice to the other party.
22) STANDARD PROVISIONS. This Grant Agreement is complete and is the final Agreement between the parties. The following Exhibits are attached and made a part of this Grant Agreement by this reference:
Exhibit A – Work Plan
Exhibit B – Budget
Exhibit C – Schedule
Exhibit D – Standard Conditions
Exhibit E – Authorizing Resolution
Exhibit F – Report Formats and Requirements
Exhibit G – Requirements for Data Submittal
Exhibit H – State Audit Document Requirements and Cost Share Guidelines for the Grantee Exhibit I – Local Project Sponsors and Project Locations Exhibit J – Appraisal Specifications
Exhibit K – Information Needed for Escrow Processing and Closure Exhibit L – Project Monitoring Plan Guidance
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Exhibit M – Invoice Guidance for Administrative and Overhead Charges IN WITNESS WHEREOF, the parties hereto have executed this Grant Agreement.
STATE OF CALIFORNIA
DEPARTMENT OF WATER RESOURCES
REGIONAL WATER MANAGEMENT
FOUNDATION
Arthur Hinojosa
Manager, Division of Regional Assistance
John Ricker
President
Date Date
Approved as to Legal Form and Sufficiency
_____________________________
Robin Brewer
Assistant General Counsel,
Office of the General Counsel
Date___________________________
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F 11/27/2023
For
11/28/2023
11/28/2023
Attachment 2
Grant Agreement No. 4600015400
EXHIBIT A
WORK PLAN
PROPOSITION 1 ROUND 2 SANTA CRUZ IRWM IMPLEMENTATION GRANT Grant Administration
IMPLEMENTING AGENCY: Regional Water Management Foundation (Grantee) PROJECT DESCRIPTION: The Grantee will administer these funds and respond to DWR’s reporting and compliance requirements associated with the grant administration. This Grantee will act in a coordination role: disseminating grant compliance information to the project managers responsible for implementing the projects contained in this Agreement, obtaining and retaining evidence of compliance (e.g., CEQA/NEPA documents, reports, monitoring compliance documents, labor requirements, etc.), obtaining data for progress reports from individual project managers, assembling and submitting progress reports to the State, and coordinating all invoicing and payment of invoices.
Budget Category (a): Project Administration
Task 1: Agreement Administration
The Grantee will respond to DWR’s reporting and compliance requirements associated with the grant administration. The Grantee will complete Local Project Sponsor Agreements and will coordinate with the project managers and staff of the Local Project Sponsor responsible for implementing the projects contained in this agreement.
Task 2: Invoicing
The Grantee will be responsible for compiling invoices for submittal to DWR. This includes collecting invoice documentation from each of the Local Project Sponsors and compiling the information into a DWR Invoice Packet.
Deliverables:
• Quarterly Invoices and associated backup documentation Task 3: Reporting
The Grantee will be responsible for compiling progress reports for submittal to DWR. The Grantee will coordinate with Local Project Sponsor staff to retain consultants as needed to prepare and submit progress reports and final project completion reports for each project, as well as the grant completion report.
Reports will meet generally accepted professional standards for technical reporting and the requirements terms of the contract with DWR outlined in Exhibit F of this Agreement.
Deliverables:
• Quarterly Progress Reports
• Grant Completion Report
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
PROJECT 1: Fire-Hardening of Critical Water Supply Infrastructure IMPLEMENTING AGENCY: San Lorenzo Valley Water District (SLVWD) PROJECT DESCRIPTION: The project will fire-harden up to 13 structures that house critical water supply distribution system infrastructure, specifically the facilities that house booster pumps, which are integral to the operation of the water supply system. These booster pump stations provide potable and fire suppression water to 2,918 connections and a population of about 9,500. The project will ensure public water security and will improve water supply reliability for the community by protecting 651 acre-feet per year (AFY) of water from potential impacts of wildfire.
Budget Category (a): Project Administration
Task 1: Project Management
Complete a Local Project Sponsor Agreement with Grantee, provide grant compliance documents as needed and coordinate with Grantee on matters related to project and grant requirements. Prepare invoices including relevant supporting documentation for submittal to DWR via the Grantee. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors.
Deliverables:
• Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during the reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR via Grantee.
Prepare Project Completion Report and submit to DWR no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.
Deliverables:
• Quarterly Project Progress Reports
• Project Completion Report
• Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
No land purchase or easement acquisition is required for this project.
Deliverables: N/A
Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
Not applicable.
Deliverables: N/A
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Task 5: CEQA Documentation
Complete environmental review pursuant to CEQA. Prepare all necessary environmental documentation.
Prepare letter stating no legal challenges (or addressing legal challenges).
Deliverables:
• All completed CEQA documents as required
• Legal Challenges Letter
Task 6: Permitting
SLVWD conducted a preliminary assessment of the work to be performed, no permits were identified as needed to proceed.
Deliverables: N/A
Task 7: Design
SLVWD has completed a standard design for pump house structures. This task will include application of the standard design to each specific site; to include any required demolition of existing facilities, grading, stormwater control, fire protection/clearing of site, evaluation of and possible revisions to electrical and communications facilities, and any required access improvements. Each of the individual pump stations have site specific conditions, where applicable, site-specific design features not included in the standard design, may be incorporated into final designs concurrent with Construction (Task 11) as construction at multiple sites may be overlapping and/or occurring simultaneously.
Deliverables:
• Final Site-specific Design Plans
• Final Standard Pump House Design Plans
• Final Project Specifications
Task 8: Project Monitoring Plan
Develop and submit a Project Monitoring Plan per Paragraph 16 for DWR’s review and approval.
Deliverables:
• Project Monitoring Plan
Budget Category (d): Construction/Implementation
Task 9: Contract Services
This task must comply with the Standard Condition D.11 – Competitive Bidding and Procurements. Activities necessary (as applicable) to secure a contractor and award the contract, including: develop bid documents, prepare advertisement and contract documents for construction contract bidding, conduct pre-bid meeting, bid opening and evaluation, selection of the contractor, award of contract, and issuance of notice to proceed.
Deliverables:
• Bid Documents
• Proof of Advertisement
• Award of Contract
• Notice to Proceed
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Task 10: Construction Administration
This task includes managing contractor submittal review, answering requests for information, and issuing work directives. An engineering construction observer will be on site for the duration of the project.
Construction observer duties include documenting of pre-construction conditions, daily construction diary, preparing change orders, addressing questions of contractors on site, reviewing/updating project schedule, reviewing contractor log submittals and pay requests, forecasting cash flow, notifying contractor if work is not acceptable. Upon completing the project, the DWR Certificate of Project Completion and record drawings will be provided to DWR.
Deliverables:
• DWR Certificate of Project Completion
• Record Drawings
Task 11: Construction
Construction activities will occur at up to 13 critical water infrastructure facilities that house water distribution booster pump stations.
For pump houses with wood roofs and concrete walls, fire-hardening will involve removal/demolition of the existing pump house wood roof and replacement with corrugated steel roofs and sheathing.
For pump houses with both wooden roofs and walls, fire-hardening treatments will involve a full retrofit to include steel roofs, steel framing, galvanized corrugated sheathing for roof and wall paneling, and concrete masonry unit walls. Activities at these locations will include: setting up temporary bypass pump facilities; removal/demolition of old facility piping; removal and protection of existing pumps and controls; site work, including preparation of slab, parking/access improvements, and retaining of hillsides; construction of the new pump house structure; installation of new plumbing and reinstalling existing pumps; and bringing the facility online.
Deliverables:
• Photographic Documentation of Progress
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
PROJECT 2: Equalization Tank Replacement Project
IMPLEMENTING AGENCY: County of Santa Cruz, County Service Area 7 - Boulder Creek Sanitation PROJECT DESCRIPTION: The project will install a 110,000-gallon equalization tank at the County Service Area 7’s wastewater treatment plant to replace its current 50,000-gallon tank. The equalization tank is used as a holding basin for sewer influent leaving the grinder. It allows for optimization of the wastewater treatment plant processes during variations of flows. The project will increase water storage by 60,000 gallons, decrease emergency hauling during seasonal rain events, and provide the community with 0.26 AFY of water savings and improved operational efficiency.
Budget Category (a): Project Administration
Task 1: Project Management
Complete Local Project Sponsor Agreement with Grantee, provide grant compliance documents as needed and coordinate with Grantee on matters related to project and grant requirements. Prepare invoices including relevant supporting documentation for submittal to DWR via the Grantee. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors.
Deliverables:
• Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during the reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR via the Grantee.
Prepare Project Completion Report and submit to DWR via the Grantee no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.
Deliverables:
• Quarterly Project Progress Reports
• Project Completion Report
• Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
No land purchase or easement acquisition is required for this project.
Deliverables: N/A
Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
Not applicable.
Deliverables: N/A
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Task 5: CEQA Documentation
Complete environmental review pursuant to CEQA. Prepare all necessary environmental documentation.
Prepare letter stating no legal challenges (or addressing legal challenges).
Deliverables:
• All completed CEQA documents as required
• Legal Challenges Letter
Task 6: Permitting
Not applicable. Permits are not anticipated to be required for this project.
Deliverables:
• N/A
Task 7: Design
Complete the Basis of Design Report, perform topography surveys, develop surface elevations, complete necessary plan sheets (grading, drainage, electrical, tank foundation, etc.) for the equalization tank and its appurtenances. Develop bid items and estimates of quantities, complete detailed special provisions for the construction contract, complete internal constructability review of final plans, specifications, and estimates package.
Deliverables:
• Basis of Design Report
• 100% Design Plans and Specifications
Task 8: Project Monitoring Plan
Develop and submit a Project Monitoring Plan per Paragraph 16 for DWR’s review and approval.
Deliverables:
• Project Monitoring Plan
Budget Category (d): Construction/Implementation
Task 9: Contract Services
This task must comply with the Standard Condition D.11 – Competitive Bidding and Procurements. Activities necessary (as applicable) to secure a contractor and award the contract, including: develop bid documents, prepare advertisement and contract documents for construction contract bidding, conduct pre-bid meeting (if necessary), bid opening and evaluation, selection of the contractor, award of contract, contract execution and issuance of notice to Contract Execution.
Deliverables:
• Bid Documents
• Proof of Advertisement
• Award of Contract
• Notice to Proceed
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Task 10: Construction Administration
This task includes managing the construction contract from execution through the Notice of Completion. A construction inspector will be on site for the duration of the project. Construction inspector duties include documenting of pre-construction conditions, daily construction diary addressing questions of contractors on site, schedule material testing, ensuring compliance with the project plans and specifications, tracking bid item quantiles, and tracking changes for record (as-builts) drawings. A resident engineer will be assigned to the project for reviewing conducting progress meetings, contractor submittals, reviewing/updating project schedules, ensuring labor compliance, preparing change orders, reviewing pay requests, and completing progress payments, forecasting budget. Upon completing the project, the DWR Certificate of Project Completion and record drawings will be provided to DWR.
Deliverables:
• DWR Certificate of Project Completion
• Record Drawings
Task 11: Construction
Construction activities are outlined below.
Site preparation will include clearing and grubbing, implementing Best Management Practices (BMPs), installing fencing, and environmental measures and/or work area flagging/fencing. Existing tank and foundation demolition, including removing all waste and temporary holding and hauling of wastewater during construction as necessary. The new tank foundation includes site grading, foundation excavation and subgrade preparation, reinforcement placement, and foundation pour and cure.
Construct equalization tank and appurtenances: Modify/extend conveyance piping and install control valves between equalization tank and the treatment plant.
Electrical/Controls/Instrumentation includes installation of conduit and wiring associated with appurtenances and instrumentation for flow/level monitoring through SCADA.
Site Restoration to establish erosion control and permanent BMPs and restore site to pre-construction conditions.
Deliverables:
• Photographic Documentation of Progress
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
PROJECT 3: Decision-Support Tool - Understanding Climate Influenced River Flooding IMPLEMENTING AGENCY: City of Santa Cruz (City)
PROJECT DESCRIPTION: The City will develop a decision-support tool (DST) to improve the understanding of climate influenced river flooding on the San Lorenzo River (SLR) and inform future City management actions. The City will conduct technical analyses of climate change vulnerabilities on watershed hydrology and river hydraulics to develop a decision support tool that utilizes an adaptation pathways approach.
Adaptation pathways utilize triggers and thresholds to proactively signal when infrastructure and programming should be implemented to mitigate impacts.
Budget Category (a): Project Administration
Task 1: Project Management
Complete a Local Project Sponsor Agreement with Grantee, provide grant compliance documents as needed and coordinate with Grantee on matters related to project and grant requirements. Prepare invoices including relevant supporting documentation for submittal to DWR via the Grantee. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors. The project team will meet monthly in virtual meetings.
Deliverables:
• Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR via Grantee.
Prepare Project Completion Report and submit to DWR no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.
Deliverables:
• Quarterly Project Progress Reports
• Project Completion Report
• Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
No land purchase or easement acquisition is required for this project.
Deliverables: N/A
Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
Not applicable.
Deliverables: N/A
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Task 5: CEQA Documentation
Not applicable.
Deliverables: N/A
Task 6: Permitting
Not applicable.
Deliverables: N/A
Task 7: Design
The Design Task includes the following:
Mobilize Stakeholders – Mobilize key departments, consultants, and agencies to inform the project design.
Data Compilation – Compile and review existing hydrologic, hydraulic and sediment data.
Developing hydroclimate scenarios – Scenarios will include up to three future time periods, two emissions scenarios and two formulations of climate model ensembles to characterize the range of future climate conditions over time and reflect the uncertainty in projected climate data.
Hydrologic modeling – Characterize extreme streamflow conditions using a combination of existing downscaled climate products of surface and subsurface flow, adapting the results from an existing hydrologic model of the system to investigate peak flow increases, and developing a hydrologic model of the watershed capable of simulating extreme flood events and using downscaled rainfall data to drive the model. By applying all three approaches, we will test the hypothesis that they will provide similar results, explore the degree of concurrence between the methods, and provide valuable insight to others that may want to undertake similar work in the region.
Hydrodynamic modeling – Conduct two dimensional (2D) hydrodynamic modeling utilizing the existing U.S.
Army Corps of Engineers (USACE) 1-D HEC-6T and HEC-RAS models of the in-channel portion of the SLR expanded model to include the overbank areas as 2D floodplain elements utilizing HEC-RAS 5. The suitability of the HEC-6T and HEC-RAS models will be evaluated, and a determination made of which model to use for characterizing sediment transport conditions for the riverbed.
Deliverables:
• Draft and final technical documentation of the analysis assumptions, tools, and results.
Task 8: Project Monitoring Plan
Not applicable.
Deliverables: N/A
Budget Category (d): Construction/Implementation
Task 9: Contract Services
Not applicable.
Deliverables: N/A
Task 10: Construction Administration
Not applicable.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Deliverables: N/A
Task 11: Implementation
Implementation activities are described below:
Future flood hazard visualizations – Develop flood plain mapping from hydrodynamic modeling to illustrate flood hazards and floodplain extents for future time periods and climate horizons.
DST Development – City staff will utilize flood thresholds, new hazard mapping, relative costs and benefits of flood mitigation, and strategies to develop a DST to guide timing and sequencing of adaptation strategies to mitigate flood risk. The DST will consist of adaptation pathways visualizations and flood hazard mapping with sequenced adaptation strategies and will become part of the upcoming 2018 Climate Adaptation Plan Update and Local Hazard Mitigation Plan Updates.
Community Outreach – City staff will perform outreach to community members and frontline groups in economically Disadvantaged Community (DAC) census tracts within the SLR floodplain to guide flood control management and bolster resilience of the flood control systems.
Findings – Preparing draft and final report with technical documentation of the analysis assumptions, tools, results, and final flood hazard mapping.
Deliverables:
• Decision Support Tool Outputs: adaptation pathways visualizations and flood hazard mapping with sequenced adaptation strategies
• Final report with technical documentation of the analysis assumptions, tools, results, and final flood hazard mapping
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
PROJECT 4: Recreational Vehicle Sewage Dump Station
IMPLEMENTING AGENCY: City of Santa Cruz Public Works (SCPW) PROJECT DESCRIPTION: The project will construct a recreational vehicle (RV) dump station so wastewater from RVs can be safely emptied into the City’s sanitary sewer system. The dump station will provide a readily accessible location where people can safely dispose of RV wastewater with the goal of reducing the number of illicit RV dumping incidents which discharge wastewater into the City's storm drain system. The dump station will be offered as a free public service. The project will reduce bacteria contamination to the City’s main water source, the SLR, and will result in an estimated 0.16 AFY of sewage being properly disposed of at the new RV sewer dump station.
Budget Category (a): Project Administration
Task 1: Project Management
Complete a Local Project Sponsor Agreement with Grantee, provide grant compliance documents as needed and coordinate with Grantee on matters related to project and grant requirements. Prepare invoices including relevant supporting documentation for submittal to DWR via the Grantee. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors.
Deliverables:
• Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR via Grantee.
Prepare Project Completion Report and submit to DWR no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.
Deliverables:
• Quarterly Project Progress Reports
• Project Completion Report
• Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
No land purchase or easement acquisition is required for this project.
Deliverables: N/A
Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
Not applicable.
Deliverables: N/A
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Task 5: CEQA Documentation
Complete environmental review pursuant to CEQA. Prepare all necessary environmental documentation.
Prepare letter stating no legal challenges (or addressing legal challenges).
Deliverables:
• All completed CEQA documents as required
• Legal Challenges Letter
Task 6: Permitting
The following permits are anticipated to be acquired for this project: City of Santa Cruz, Public Works Department - Encroachment Permit, Street Opening Permit; City of Santa Cruz, Parks and Recreation Department - Tree Removal Permit; and Santa Cruz County Environmental Health - Sewage Disposal Permit.
Deliverables:
• Permits as required
Task 7: Design
SCPW staff will prepare the design of the dump station. The design will emphasize durability, ease of use for patrons and ease of maintenance. The system will be designed to minimize the efforts required by staff to address spill overflow, vandalism, clogging, and general repair work.
Deliverables:
• Basis of Design Report
• 100% Design Plans and Specifications
Task 8: Project Monitoring Plan
Develop and submit a Project Monitoring Plan per Paragraph 16 for DWR’s review and approval.
Deliverables:
• Project Monitoring Plan
Budget Category (d): Construction/Implementation
Task 9: Contract Services
This task must comply with the Standard Condition D.11 – Competitive Bidding and Procurements. Activities necessary (as applicable) to secure a contractor and award the contract, including: develop bid documents, prepare advertisement and contract documents for construction contract bidding, conduct pre-bid meeting, bid opening and evaluation, selection of the contractor, award of contract, and issuance of notice to proceed.
Deliverables:
• Bid Documents
• Proof of Advertisement
• Award of Contract
• Notice to Proceed
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Task 10: Construction Administration
This task includes managing contractor submittal review, answering requests for information, and issuing work directives. An engineering construction observer will be on site for the duration of the project.
Construction observer duties include documenting of pre-construction conditions, daily construction diary, preparing change orders, addressing questions of contractors on site, reviewing/ updating project schedule, reviewing contractor log submittals and pay requests, forecasting cash flow, notifying contractor if work is not acceptable. Upon completing the project, the DWR Certificate of Project Completion and record drawings will be provided to DWR.
Deliverables:
• DWR Certificate of Project Completion
• Record Drawings
Task 11: Construction
Construction activities are outlined below.
11(a): Mobilization and Demobilization construction staging areas, construction fencing, sediment and erosion control BMPs, materials and equipment storage.
11(b): Site preparation will include tree removal, demolition, clearing/grubbing, and grading. 11(c): The single dump station will be constructed around a concrete pad. The concrete pad will also have a garbage can and potable water supply hose. The water supply hose will be equipped with a timed shutoff and will allow users to flush hoses and connections. The concrete pad will be sloped towards the sanitary sewer connection port and will include speed bumps/berms for additional spill containment. The dump station will also include an asphalt access lane/turnout located in the City street and lighting. The access lane will be sloped towards the gutter, utilities (sewer/water/lighting), paving/grading/striping and signage installation.
11(d): Project commissioning will include system testing and final inspections.
Deliverables:
• Photographic Documentation of Progress
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
PROJECT 5: Atkinson Lane Integrated Flood Management and Watershed Restoration Project IMPLEMENTING AGENCY: City of Watsonville
PROJECT DESCRIPTION: The project will design and implement BMPs to reduce sediment inputs into the Atkinson wetland, thereby implementing integrated flood control measures and providing flood risk reduction benefits for approximately 391 acres of surrounding and downstream DACs within the City of Watsonville.
The project will also restore and enhance native habitat within the approximately 8-acre Atkinson wetland complex and will engage and educate local community volunteers and school-aged groups throughout the project.
Budget Category (a): Project Administration
Task 1: Project Management
Activities will include completing a Local Project Sponsor Agreement with Grantee, providing grant compliance documents as needed and coordinating with Grantee on matters related to project and grant requirements. Manage Grant Agreement including compliance with grant requirements, and preparation and submission of supporting grant documents. Prepare invoices including relevant supporting documentation for submittal to DWR via the Grantee. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors.
Deliverables:
• Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR.
Prepare Project Completion Report and submit to DWR no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.
Deliverables:
• Quarterly Project Progress Reports
• Project Completion Report
• Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
No land purchase or easement acquisition is required for this project.
Deliverables: N/A
Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
Not applicable.
Deliverables: N/A
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Task 5: CEQA Documentation
Complete environmental review pursuant to CEQA. Prepare all necessary environmental documentation.
Prepare letter stating no legal challenges (or addressing legal challenges).
Deliverables:
• All completed CEQA documents as required
• Legal Challenges Letter
Task 6: Permitting
The following permits are anticipated to be acquired for this project: CA Department of Fish and Wildlife - Streambed Alternation Agreement (1600); Regional Water Quality Control Board - 401 Water Quality Certification; U.S. Army Corps of Engineers - Section 404 Permit; U.S. Fish and Wildlife Service - Section 7 Consultation; and Santa Cruz County - Grading Permit.
The project may also enroll in the Resource Conservation District of Santa Cruz County’s Partners In Restoration Permit Coordination Program.
Deliverables:
• Permits as required
Task 7: Design
A qualified technical consultant will be selected to develop project designs for 1 - 3 stormwater best management practices that will be designed to reduce sediment deposition into the Atkinson wetland and improve water quality within the wetland complex associated with urban run-off into the wetland complex. A multi-phase habitat restoration plan has been developed for the wetland complex. As a part of this project, a detailed habitat restoration for the first phase (Phase 1) work that will be implemented as a part of this project will be developed that will be aligned with the planned water quality and flood risk reduction work.
Deliverables:
• Request for Qualifications or Request for Proposal for Design • 100% Design Plans and Specifications for Stormwater Improvements • 100% Habitat restoration plans, Phase 1 Atkinson Wetland Complex Task 8: Project Monitoring Plan
Develop and submit a Project Monitoring Plan per Paragraph 16 for DWR’s review and approval.
Deliverables:
• Project Monitoring Plan
Budget Category (d): Construction/Implementation
Task 9: Contract Services
This task must comply with the Standard Condition D.11 – Competitive Bidding and Procurements. Activities necessary (as applicable) to secure a contractor and award the contract, including: develop bid documents, prepare advertisement and contract documents for construction contract bidding, conduct pre-bid meeting, bid opening and evaluation, selection of the contractor, award of contract, and issuance of notice to proceed.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Deliverables:
• Bid Documents
• Proof of Advertisement
• Award of Contract
• Notice to Proceed
Task 10: Construction Administration
This task includes managing contractor submittal review, answering requests for information, and issuing work directives. An engineering construction observer will be on site for the duration of the project.
Construction observer duties include documenting of pre-construction conditions, daily construction diary, preparing change orders, addressing questions of contractors on site, reviewing/ updating project schedule, reviewing contractor log submittals and pay requests, forecasting cash flow, notifying contractor if work is not acceptable. Upon completing the project, the DWR Certificate of Project Completion and record drawings will be provided to DWR.
Deliverables:
• DWR Certificate of Project Completion
• Record Drawings
Task 11: Construction
Construction activities are outlined below.
11(a): Site preparation includes clearing and grubbing of non-native vegetation, grading in proposed areas, excavation, and habitat restoration/enhancement work. 11(b): Create BMPs for stormwater benefits and implement associated erosion control measures.
Implement phase I habitat restoration project activity, including installation of native plants and erosion and sediment control measures.
11(c): Engage youth and local community members in the implementation of habitat restoration work, such as during invasive plant removal activities, habitat restoration plantings, and related community engagement to inform residents about the project. Engagement activities will be designed to be bilingual and effective for the local community audience.
11(d): Assess baseline conditions and pre- and post- construction habitat conditions with photographic monitoring and California Rapid Assessment methodology. Complete California Rapid Assessment report.
Deliverables:
• Photographic Documentation of Progress
• California Rapid Assessment report and pre- and post-construction habitat conditions DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
PROJECT 6: Drinking Water Treatment System & Secondary Water Source Rountree Facility IMPLEMENTING AGENCY: Santa Cruz County General Services Department (County) PROJECT DESCRIPTION: The project includes 1) installing an ion exchange water treatment system to reduce hexavalent chromium [Cr(VI)] to less than the proposed California drinking water maximum contaminant level (MCL) of 10 parts per billion and reduce per- and polyfluoroalkyl substances (PFAS) to the greatest extent feasible in anticipation of future PFAS MCLs, and 2) conducting a feasibility study of the Rountree Facility water system to consider the most appropriate approaches to add reliability and redundancy. The project will improve drinking water quality and will aid in the development of secondary water sources for the community.
Budget Category (a): Project Administration
Task 1: Project Management
County staff will complete a Local Project Sponsor Agreement with Grantee, provide grant compliance documents as needed and coordinate with Grantee on matters related to project and grant requirements.
County staff will prepare invoices including relevant supporting documentation for submittal to DWR via the Grantee. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors.
Deliverables:
• Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR via grantee.
Prepare Project Completion Report and submit to DWR no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.
Deliverables:
• Quarterly Project Progress Reports
• Project Completion Report
• Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
No land purchase or easement acquisition is required for this project.
Deliverables: N/A
Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
The County recently completed studies to evaluate potential water treatment approaches for the Rountree Facility drinking water system. The study examined potential approaches to address Cr(VI) and also PFAS contaminants. A recent (December 2022) County sponsored study by Corona Environmental Consulting, LLC.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
recommended a Single Use Strong Base Ion Exchange (IX) for the Rountree Correctional Facility Water Treatment Facility.
The proposed feasibility study will consider potential secondary water sources for the Rountree Facility. The feasibility study will evaluate potential options, such as: 1) the use of a new water source; or 2) an intertie to a well located at the nearby Buena Vista Landfill; or 3) an intertie to a well located at the Buena Vista Migrant Center (Migrant Center). The Migrant Center, a migrant labor housing complex, is located on the same parcel as the Rountree Facility and is owned by the County of Santa Cruz but is served by a separate water system (CA 4400763). The Migrant Center houses up to 450 seasonal agricultural workers/families (May to November) and 145 year-round residents. The Migrant Center includes housing units, a laundry facility, day care and three school buildings. The Migrant Center is also designated “at risk” due to reliance upon a single water source. An intertie, if determined to be feasible, could improve the redundancy of the water systems serving both the Rountree Facility and the Migrant Center.
Key to the proposed feasibility study is to determine if the recommended treatment system for the Rountree Facility could effectively treat water for both systems (Rountree and Migrant Center) or if it is preferrable to keep the two treatment systems separate. The feasibility study will also assess if the physical consolidation of these systems is a beneficial alternative for the County to pursue.
Deliverables:
• Relevant Feasibility Studies
Task 5: CEQA Documentation
Complete environmental review pursuant to CEQA. Prepare all necessary environmental documentation.
Prepare letter stating no legal challenges (or addressing legal challenges).
Deliverables:
• All completed CEQA documents as required
• Legal Challenges Letter
Task 6: Permitting
The following permits are anticipated to be acquired for this project: Domestic Water System Permit amendment; County and/or state permits as applicable.
Deliverables:
• Permits as required
Task 7: Design
The County will issue a Request for Qualifications or Request for Proposal to select a consultant to complete the project designs. The project designs will be informed by the findings and recommendations of Task 4 Feasibility Studies pertaining to the water treatment approaches and potential secondary water sources. The County will determine the preferred approach to contract for the design and may elect to utilize a design-bidbuild or design-build approach that is consistent with the County’s procurement policy and the Grant Standard Conditions.
Deliverables:
• Basis of Design Report
• 100% Design Plans and Specifications
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Task 8: Project Monitoring Plan
Develop and submit a Project Monitoring Plan per Paragraph 16 for DWR’s review and approval.
Deliverables:
• Project Monitoring Plan
Budget Category (d): Construction/Implementation
Task 9: Contract Services
This task must comply with the Standard Condition D.11 – Competitive Bidding and Procurements. Activities necessary (as applicable) to secure a contractor and award the contract, including: develop bid documents, prepare advertisement and contract documents for construction contract bidding, conduct pre-bid meeting, bid opening and evaluation, selection of the contractor, award of contract, and issuance of notice to proceed.
Deliverables:
• Bid Documents
• Proof of Advertisement
• Award of Contract
• Notice to Proceed
Task 10: Construction Administration
This task includes managing contractor submittal review, answering requests for information, and issuing work directives. An engineering construction observer will be on site for the duration of the project.
Construction observer duties include documenting of pre-construction conditions, daily construction diary, preparing change orders, addressing questions of contractors on site, reviewing/ updating project schedule, reviewing contractor log submittals and pay requests, forecasting cash flow, notifying contractor if work is not acceptable. Upon completing the project, the DWR Certificate of Project Completion and record drawings will be provided to DWR.
Deliverables:
• DWR Certificate of Project Completion
• Record Drawings
Task 11: Construction
Drinking water treatment system improvements to address drinking water contaminants at the Rountree Water Treatment Facility will be based upon the findings of the feasibility studies (Task 4) and the project designs (Task 7) and may allow for additional future improvements consistent with the findings of the feasibility studies.
Construction activities are outlined below.
11(a): Mobilization and Demobilization of equipment, materials, and machinery to construct the water system improvements.
11(b): Site preparation will include, as applicable, clearing and grubbing, implementation of construction BMPs, installation of fencing, and installation of environmental measures and/or work area flagging/fencing.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
11(c): Install/construct the new water treatment facility, new foundation/concrete pad to house treatment systems, treatment system and appurtenances (such as, new filters, pipelines, hoses, etc.), electrical and engineering improvements, and any related improvements or controls necessary to integrate the new treatment system into the existing water system(s).
11(d): Site Restoration, as applicable, to establish erosion control and BMPs and restore site to preconstruction conditions.
Deliverables:
• Photographic Documentation of Progress
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
EXHIBIT B
BUDGET
PROPOSITION 1 ROUND 2 SANTA CRUZ IRWM IMPLEMENTATION GRANT
AGREEMENT BUDGET SUMMARY
PROJECTS Grant Amount
Required
Cost Share:
Non-State
Fund Source
Other Cost
Share
Total Cost
% Cost
Share
Required
Grant Administration $237,588 $0 $0 $237,588 N/A
1 Project 1: Fire Hardening of Critical
Water Supply Infrastructure
$305,000 $305,000 $0 $610,000 50%
2 Project 2: Equalization Tank
Replacement Project
$405,312 $405,312 $0 $810,624 50%
3 Project 3: Decision-Support Tool -
Understanding Climate Influenced
River Flooding
$179,375 $25,625 $0 $205,000 12.5%
4 Project 4: Recreational Vehicle
Sewage Dump Station
$85,000 $85,000 $0 $170,000 50%
5 Project 5: Atkinson Lane
Integrated Flood Management and
Watershed Restoration Project
$545,000 $0 $0 $545,000 0%
6 Project 6: Drinking Water
Treatment System & Secondary
Water Source Rountree Facility
$800,000 $0 $0 $800,000 0%
GRAND TOTAL $2,557,275 $820,937 $0 $3,378,212
Grant Administration
Implementing Agency: Regional Water Management Foundation (Grantee) BUDGET CATEGORY Grant Amount
Required
Cost Share:
Non-State
Fund Source
Other Cost Share Total Cost
(a) Project Administration $237,588 $0 $0 $237,588
TOTAL COSTS $237,588 $0 $0 $237,588
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
PROJECT 1: Fire Hardening of Critical Water Supply Infrastructure Implementing Agency: San Lorenzo Valley Water District (SLVWD) BUDGET CATEGORY Grant Amount
Required
Cost Share:
Non-State
Fund Source*
Other Cost Share Total Cost
(a) Project Administration $0 $0 $0 $0
(b) Land Purchase / Easement $0 $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation $0 $10,000 $0 $10,000
(d) Construction / Implementation $305,000 $295,000 $0 $600,000 TOTAL COSTS $305,000 $305,000 $0 $610,000
NOTES:
*Required Cost Share fund source(s): San Lorenzo Valley Water District PROJECT 2: Equalization Tank Replacement Project
Implementing Agency: County of Santa Cruz, County Service Area 7 - Boulder Creek Sanitation BUDGET CATEGORY Grant Amount
Required
Cost Share:
Non-State
Fund Source*
Other Cost Share Total Cost
(a) Project Administration $0 $0 $0 $0
(b) Land Purchase / Easement $0 $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation $0 $0 $0 $0
(d) Construction / Implementation $405,312 $405,312 $0 $810,624 TOTAL COSTS $405,312 $405,312 $0 $810,624
NOTES:
*Required Cost Share fund source(s): Santa Cruz County Service Area 7 - Boulder Creek Sanitation DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
PROJECT 3: Decision-Support Tool - Understanding Climate Influenced River Flooding Implementing Agency: City of Santa Cruz (The City)
BUDGET CATEGORY Grant Amount
Required
Cost Share:
Non-State
Fund Source*
Other Cost Share Total Cost
(a) Project Administration $0 $5,625 $0 $5,625
(b) Land Purchase / Easement $0 $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation $131,866 $20,000 $0 $151,866 (d) Construction / Implementation $47,509 N/A N/A $47,509 TOTAL COSTS $179,375 $25,625 $0 $205,000
NOTES:
*The project received a 75% cost share waiver. Required Cost Share fund source(s): City of Santa Cruz.
PROJECT 4: Recreational Vehicle Sewage Dump Station
Implementing Agency: City of Santa Cruz Public Works
BUDGET CATEGORY Grant Amount
Required
Cost Share:
Non-State
Fund Source*
Other Cost Share Total Cost
(a) Project Administration $0 $0 $0 $0
(b) Land Purchase / Easement $0 $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation $0 $0 $0 $0
(d) Construction / Implementation $85,000 $85,000 $0 $170,000 TOTAL COSTS $85,000 $85,000 $0 $170,000
NOTES:
*Required Cost Share fund source(s): City of Santa Cruz Public Works.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
PROJECT 5: Atkinson Lane Integrated Flood Management and Watershed Restoration Project Implementing Agency: City of Watsonville
BUDGET CATEGORY Grant Amount
Required
Cost Share:
Non-State
Fund Source*
Other Cost Share Total Cost
(a) Project Administration $20,000 $0 $0 $20,000
(b) Land Purchase / Easement $0 $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation $140,000 $0 $0 $140,000
(d) Construction / Implementation $385,000 $0 $0 $385,000 TOTAL COSTS $545,000 $0 $0 $545,000
NOTES:
*The project received a 100% cost share waiver.
PROJECT 6: Drinking Water Treatment System & Secondary Water Source Rountree Facility Implementing Agency: Santa Cruz County General Services Department (County) BUDGET CATEGORY Grant Amount
Required
Cost Share:
Non-State
Fund Source*
Other Cost Share Total Cost
(a) Project Administration
$0 $0 $0 $0
(b) Land Purchase / Easement $0 $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation
$100,000
$0 $0
$100,000
(d) Construction / Implementation $700,000 $0 $0 $700,000 TOTAL COSTS $ 800,000 $0 $0 $ 800,000
NOTES:
*The project received a 100% cost share waiver.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
EXHIBIT C
SCHEDULE
PROPOSITION 1 ROUND 2 SANTA CRUZ IRWM IMPLEMENTATION GRANT Grant Administration
BUDGET CATEGORY Start Date End Date
a Project Administration 07/01/2023 12/31/2027
PROJECT 1: Fire Hardening of Critical Water Supply Infrastructure BUDGET CATEGORY Start Date End Date
a Project Administration 08/01/2023 04/30/2027
b Land Purchase / Easement N/A N/A
c Planning / Design / Engineering / Environmental Documentation 08/01/2023 6/31/2024 d Construction / Implementation 02/01/2024 01/31/2027
Bidding and award of contract (Task 9. Contract Services) can occur concurrently with CEQA review (Task 5). The Contract Services task will not be paid for using grant funds or cost share. Construction (Tasks 10 and 11) will begin only after CEQA has been completed.
Task 7 (Design) extends into the Construction/ Implementation (Tasks 10 and 11) schedule because some of the 13 pump stations have site specific features that may require design features be incorporated into final designs concurrent with Construction (Task 11) since construction may be overlapping or occurring at multiple individual sites simultaneously.
PROJECT 2: Equalization Tank Replacement Project
BUDGET CATEGORY Start Date End Date
a Project Administration 10/01/2023 3/31/2026
b Land Purchase / Easement N/A N/A
c Planning / Design / Engineering / Environmental Documentation 01/01/2023 12/31/2024 d Construction / Implementation 01/01/2025 11/30/2025
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
PROJECT 3: Decision-Support Tool - Understanding Climate Influenced River Flooding BUDGET CATEGORY Start Date End Date
a Project Administration 9/1/2023 6/30/2025
b Land Purchase / Easement N/A N/A
c Planning / Design / Engineering / Environmental Documentation 9/1/2023 8/31/2024 d Construction / Implementation 9/1/2024 3/31/2025
PROJECT 4: Recreational Vehicle Sewage Dump Station
BUDGET CATEGORY Start Date End Date
a Project Administration 9/1/2023 3/31/2026
b Land Purchase / Easement N/A N/A
c Planning / Design / Engineering / Environmental Documentation 9/1/2023 9/30/2024 d Construction / Implementation 3/1/2024 12/31/2025
There is overlap in the schedules for Categories (c) Planning/ Design / Engineering / Environmental Documentation and (d) Construction/ Implementation overlap because it is anticipated that some initial work on Task 9 (Contract Services) related to contractor/consultant procurement may start prior to the completion of the Tasks being performed under Category C.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
PROJECT 5: Atkinson Lane Integrated Flood Management and Watershed Restoration Project BUDGET CATEGORY Start Date End Date
a Project Administration 09/01/2023 09/30/2027
b Land Purchase / Easement N/A N/A
c Planning / Design / Engineering / Environmental Documentation 01/01/2024 05/31/2025 d Construction / Implementation 06/01/2025 06/30/2027
PROJECT 6: Drinking Water Treatment System & Secondary Water Source Rountree Facility BUDGET CATEGORY Start Date End Date
a Project Administration 7/1/2023 12/31/2026
b Land Purchase / Easement N/A N/A
c Planning / Design / Engineering / Environmental Documentation 7/1/2023 9/30/2025 d Construction / Implementation 7/1/2024 9/30/2026
There is overlap in the schedules for Categories (c) Planning/ Design / Engineering / Environmental Documentation and (d) Construction/ Implementation overlap because it is anticipated that some initial work on Task 9 (Contract Services) related to contractor/consultant procurement may start prior to the completion of the Tasks being performed under Category C.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
EXHIBIT D
STANDARD CONDITIONS
D.1. ACCOUNTING AND DEPOSIT OF FUNDING DISBURSEMENT:
A. Separate Accounting of Funding Disbursements: Grantee shall account for the money disbursed pursuant to this Grant Agreement separately from all other Grantee funds. Grantee shall maintain audit and accounting procedures that are in accordance with generally accepted accounting principles and practices, consistently applied. Grantee shall keep complete and accurate records of all receipts and disbursements on expenditures of such funds. Grantee shall require its contractors or subcontractors to maintain books, records, and other documents pertinent to their work in accordance with generally accepted accounting principles and practices. Records are subject to inspection by State at any and all reasonable times.
B. Disposition of Money Disbursed: All money disbursed pursuant to this Grant Agreement shall be deposited in a non-interest bearing account, administered, and accounted for pursuant to the provisions of applicable law.
C. Remittance of Unexpended Funds: Grantee shall remit to State any unexpended funds that were disbursed to Grantee under this Grant Agreement and were not used to pay Eligible Project Costs within a period of sixty (60) calendar days from the final disbursement from State to Grantee of funds or, within thirty (30) calendar days of the expiration of the Grant Agreement, whichever comes first.
D.2. ACKNOWLEDGEMENT OF CREDIT AND SIGNAGE: Grantee shall include appropriate acknowledgement of credit to the State for its support when promoting the Project or using any data and/or information developed under this Grant Agreement. Signage shall be posted in a prominent location at Project site(s) (if applicable) or at the Grantee’s headquarters and shall include the Department of Water Resources color logo and the following disclosure statement: “Funding for this project has been provided in full or in part from the Water Quality, Supply, and Infrastructure Improvement Act of 2014 and through an agreement with the State Department of Water Resources.” The Grantee shall also include in each of its contracts for work under this Agreement a provision that incorporates the requirements stated within this Paragraph.
D.3. AMENDMENT: This Grant Agreement may be amended at any time by mutual agreement of the Parties, except insofar as any proposed amendments are in any way contrary to applicable law.
Requests by the Grantee for amendments must be in writing stating the amendment request and the reason for the request. Requests solely for a time extension must be submitted at least 90 days prior to the work completion date set forth in Paragraph 2. Any other request for an amendment must be submitted at least 180 days prior to the work completion date set forth in Paragraph 2. State shall have no obligation to agree to an amendment.
D.4. AMERICANS WITH DISABILITIES ACT: By signing this Grant Agreement, Grantee assures State that it complies with the Americans with Disabilities Act (ADA) of 1990, (42 U.S.C. § 12101 et seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA.
D.5. AUDITS: State reserves the right to conduct an audit at any time between the execution of this Grant Agreement and the completion of the Project, with the costs of such audit borne by State. After completion of the Project, State may require Grantee to conduct a final audit to State’s specifications, at Grantee’s expense, such audit to be conducted by and a report prepared by an independent Certified Public Accountant. Failure or refusal by Grantee to comply with this provision shall be considered a breach of this Grant Agreement, and State may elect to pursue any remedies provided in Paragraph 12 or take any other action it deems necessary to protect its interests. The Grantee agrees it shall return any audit disallowances to the State.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Pursuant to Government Code section 8546.7, the Grantee shall be subject to the examination and audit by the State for a period of three (3) years after final payment under this Grant Agreement with respect of all matters connected with this Grant Agreement, including but not limited to, the cost of administering this Grant Agreement. All records of Grantee or its contractor or subcontractors shall be preserved for this purpose for at least three (3) years after receipt of the final disbursement under this Agreement. If an audit reveals any impropriety, the Bureau of State Audits or the State Controller’s Office may conduct a full audit of any or all of the Grantee’s activities. Code, § 79708, subd. (b) D.6. BUDGET CONTINGENCY: If the Budget Act of the current year covered under this Grant Agreement does not appropriate sufficient funds for this program, this Grant Agreement shall be of no force and effect. This provision shall be construed as a condition precedent to the obligation of State to make any payments under this Grant Agreement. In this event, State shall have no liability to pay any funds whatsoever to Grantee or to furnish any other considerations under this Grant Agreement and Grantee shall not be obligated to perform any provisions of this Grant Agreement. Nothing in this Grant Agreement shall be construed to provide Grantee with a right of priority for payment over any other Grantee. If funding for any fiscal year after the current year covered by this Grant Agreement is reduced or deleted by the Budget Act, by Executive Order, or by order of the Department of Finance, the State shall have the option to either cancel this Grant Agreement with no liability occurring to State, or offer a Grant Agreement amendment to Grantee to reflect the reduced amount.
D.7. CALIFORNIA CONSERVATION CORPS: Grantee may use the services of the California Conservation Corps or other community conservation corps as defined in Public Resources Code section 14507.5.
D.8. CEQA: Activities funded under this Grant Agreement, regardless of funding source, must be in compliance with the California Environmental Quality Act (CEQA). (Pub. Resources Code, § 21000 et seq.) Any work that is subject to CEQA and funded under this Agreement shall not proceed until documents that satisfy the CEQA process are received by the State’s Project Manager and the State has completed its CEQA compliance. Work funded under this Agreement that is subject to a CEQA document shall not proceed until and unless approved by the Department of Water Resources. Such approval is fully discretionary and shall constitute a condition precedent to any work for which it is required. If CEQA compliance by the Grantee is not complete at the time the State signs this Agreement, once State has considered the environmental documents, it may decide to require changes, alterations, or other mitigation to the Project; or to not fund the Project. Should the State decide to not fund the Project, this Agreement shall be terminated in accordance with Paragraph 12, “Default Provisions.”
D.9. CHILD SUPPORT COMPLIANCE ACT: The Grantee acknowledges in accordance with Public Contract Code section 7110, that:
A. The Grantee recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Family Code section 5200 et seq.; and B. The Grantee, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.
D.10. CLAIMS DISPUTE: Any claim that the Grantee may have regarding performance of this Agreement including, but not limited to, claims for additional compensation or extension of time, shall be submitted to the DWR Project Representative, within thirty (30) days of the Grantee’s knowledge of the claim.
State and Grantee shall then attempt to negotiate a resolution of such claim and process an amendment to this Agreement to implement the terms of any such resolution.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
D.11. COMPETITIVE BIDDING AND PROCUREMENTS: Grantee’s contracts with other entities for the acquisition of goods and services and construction of public works with funds provided by State under this Grant Agreement must be in writing and shall comply with all applicable laws and regulations regarding the securing of competitive bids and undertaking competitive negotiations. If the Grantee does not have a written policy to award contracts through a competitive bidding or sole source process, the Department of General Services’ State Contracting Manual rules must be followed and are available at: https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-ServicesResources-List-Folder/State-Contracting.
D.12. COMPUTER SOFTWARE: Grantee certifies that it has appropriate systems and controls in place to ensure that state funds will not be used in the performance of this Grant Agreement for the acquisition, operation, or maintenance of computer software in violation of copyright laws.
D.13. CONFLICT OF INTEREST: All participants are subject to State and Federal conflict of interest laws.
Failure to comply with these laws, including business and financial disclosure provisions, will result in the application being rejected and any subsequent contract being declared void. Other legal action may also be taken. Applicable statutes include, but are not limited to, Government Code section 1090 and Public Contract Code sections 10410 and 10411, for State conflict of interest requirements.
A. Current State Employees: No State officer or employee shall engage in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any State agency, unless the employment, activity, or enterprise is required as a condition of regular State employment. No State officer or employee shall contract on his or her own behalf as an independent contractor with any State agency to provide goods or services.
B. Former State Employees: For the two-year period from the date he or she left State employment, no former State officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to the contract while employed in any capacity by any State agency. For the twelvemonth period from the date he or she left State employment, no former State officer or employee may enter into a contract with any State agency if he or she was employed by that State agency in a policy-making position in the same general subject area as the proposed contract within the twelve-month period prior to his or her leaving State service.
C. Employees of the Grantee: Employees of the Grantee shall comply with all applicable provisions of law pertaining to conflicts of interest, including but not limited to any applicable conflict of interest provisions of the California Political Reform Act. (Gov. Code, § 87100 et seq.) D. Employees and Consultants to the Grantee: Individuals working on behalf of a Grantee may be required by the Department to file a Statement of Economic Interests (Fair Political Practices Commission Form 700) if it is determined that an individual is a consultant for Political Reform Act purposes.
D.14. DELIVERY OF INFORMATION, REPORTS, AND DATA: Grantee agrees to expeditiously provide throughout the term of this Grant Agreement, such reports, data, information, and certifications as may be reasonably required by State.
D.15. DISPOSITION OF EQUIPMENT: Grantee shall provide to State, not less than thirty (30) calendar days prior to submission of the final invoice, an itemized inventory of equipment purchased with funds provided by State. The inventory shall include all items with a current estimated fair market value of more than $5,000.00 per item. Within sixty (60) calendar days of receipt of such inventory State shall provide Grantee with a list of the items on the inventory that State will take title to. All other items shall become the property of Grantee. State shall arrange for delivery from Grantee of items that it takes title to. Cost of transportation, if any, shall be borne by State.
D.16. DRUG-FREE WORKPLACE CERTIFICATION: Certification of Compliance: By signing this Grant Agreement, Grantee, its contractors or subcontractors hereby certify, under penalty of perjury under DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
the laws of State of California, compliance with the requirements of the Drug-Free Workplace Act of 1990 (Gov. Code, § 8350 et seq.) and have or will provide a drug-free workplace by taking the following actions:
A. Publish a statement notifying employees, contractors, and subcontractors that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees, contractors, or subcontractors for violations, as required by Government Code section 8355.
B. Establish a Drug-Free Awareness Program, as required by Government Code section 8355 to inform employees, contractors, or subcontractors about all of the following:
i. The dangers of drug abuse in the workplace,
ii. Grantee’s policy of maintaining a drug-free workplace, iii. Any available counseling, rehabilitation, and employee assistance programs, and iv. Penalties that may be imposed upon employees, contractors, and subcontractors for drug abuse violations.
C. Provide, as required by Government Code section 8355, that every employee, contractor, and/or subcontractor who works under this Grant Agreement:
i. Will receive a copy of Grantee’s drug-free policy statement, and ii. Will agree to abide by terms of Grantee’s condition of employment, contract or subcontract.
D.17. EASEMENTS: Where the Grantee acquires property in fee title or funds improvements to real property using State funds provided through this Grant Agreement, an appropriate easement or other title restriction providing for floodplain preservation and agricultural and/or wildlife habitat conservation for the subject property in perpetuity, approved by the State, shall be conveyed to a regulatory or trustee agency or conservation group acceptable to the State. The easement or other title restriction must be in first position ahead of any recorded mortgage or lien on the property unless this requirement is waived by the State.
Where the Grantee acquires an easement under this Agreement, the Grantee agrees to monitor and enforce the terms of the easement, unless the easement is subsequently transferred to another land management or conservation organization or entity with State permission, at which time monitoring and enforcement responsibilities will transfer to the new easement owner.
Failure to provide an easement or other title restriction acceptable to the State may result in termination of this Agreement.
D.18. FINAL INSPECTIONS AND CERTIFICATION OF REGISTERED PROFESSIONAL: Upon completion of the Project, Grantee shall provide for a final inspection and certification by a California Registered Professional (i.e., Professional Civil Engineer, Engineering Geologist), that the Project has been completed in accordance with submitted final plans and specifications and any modifications thereto and in accordance with this Grant Agreement.
D.19. GRANTEE'S RESPONSIBILITIES: Grantee and its representatives shall:
A. Faithfully and expeditiously perform or cause to be performed all project work as described in Exhibit A and in accordance with Exhibits B and C.
B. Accept and agree to comply with all terms, provisions, conditions, and written commitments of this Grant Agreement, including all incorporated documents, and to fulfill all assurances, declarations, representations, and statements made by Grantee in the application, documents, amendments, and communications filed in support of its request for funding.
C. Comply with all applicable California, federal, and local laws and regulations.
D. Implement the Project in accordance with applicable provisions of the law.
E. Fulfill its obligations under the Grant Agreement and be responsible for the performance of the Project.
F. Obtain any and all permits, licenses, and approvals required for performing any work under this Grant Agreement, including those necessary to perform design, construction, or operation and maintenance of the Project. Grantee shall provide copies of permits and approvals to State.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
G. Be solely responsible for design, construction, and operation and maintenance of projects within the work plan. Review or approval of plans, specifications, bid documents, or other construction documents by State is solely for the purpose of proper administration of funds by State and shall not be deemed to relieve or restrict responsibilities of Grantee under this Agreement.
H. Be solely responsible for all work and for persons or entities engaged in work performed pursuant to this Agreement, including, but not limited to, contractors, subcontractors, suppliers, and providers of services. The Grantee shall be responsible for any and all disputes arising out of its contracts for work on the Project, including but not limited to payment disputes with contractors and subcontractors. The State will not mediate disputes between the Grantee and any other entity concerning responsibility for performance of work.
D.20. GOVERNING LAW: This Grant Agreement is governed by and shall be interpreted in accordance with the laws of the State of California.
D.21. INCOME RESTRICTIONS: The Grantee agrees that any refunds, rebates, credits, or other amounts (including any interest thereon) accruing to or received by the Grantee under this Agreement shall be paid by the Grantee to the State, to the extent that they are properly allocable to costs for which the Grantee has been reimbursed by the State under this Agreement. The Grantee shall also include in each of its contracts for work under this Agreement a provision that incorporates the requirements stated within this Paragraph.
D.22. INDEMNIFICATION: Grantee shall indemnify and hold and save the State, its officers, agents, and employees, free and harmless from any and all liabilities for any claims and damages (including inverse condemnation) that may arise out of the Project and this Agreement, including, but not limited to any claims or damages arising from planning, design, construction, maintenance and/or operation of levee rehabilitation measures for this Project and any breach of this Agreement. Grantee shall require its contractors or subcontractors to name the State, its officers, agents and employees as additional insureds on their liability insurance for activities undertaken pursuant to this Agreement.
D.23. INDEPENDENT CAPACITY: Grantee, and the agents and employees of Grantees, in the performance of the Grant Agreement, shall act in an independent capacity and not as officers, employees, or agents of the State.
D.24. INSPECTION OF BOOKS, RECORDS, AND REPORTS: During regular office hours, each of the parties hereto and their duly authorized representatives shall have the right to inspect and to make copies of any books, records, or reports of either party pertaining to this Grant Agreement or matters related hereto. Each of the parties hereto shall maintain and shall make available at all times for such inspection accurate records of all its costs, disbursements, and receipts with respect to its activities under this Grant Agreement. Failure or refusal by Grantee to comply with this provision shall be considered a breach of this Grant Agreement, and State may withhold disbursements to Grantee or take any other action it deems necessary to protect its interests.
D.25. INSPECTIONS OF PROJECT BY STATE: State shall have the right to inspect the work being performed at any and all reasonable times during the term of the Grant Agreement. This right shall extend to any subcontracts, and Grantee shall include provisions ensuring such access in all its contracts or subcontracts entered into pursuant to its Grant Agreement with State.
D.26. LABOR CODE COMPLIANCE: The Grantee agrees to be bound by all the provisions of the Labor Code regarding prevailing wages and shall monitor all contracts subject to reimbursement from this Agreement to assure that the prevailing wage provisions of the Labor Code are being met. Current Department of Industrial Relations (DIR) requirements may be found at: http://www.dir.ca.gov/ lcp.asp.
For more information, please refer to DIR’s Public Works Manual at: https://www.dir.ca.gov/ dlse/PWManualCombined.pdf. The Grantee affirms that it is aware of the provisions of section 3700 of the Labor Code, which requires every employer to be insured against liability for workers’ DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
compensation or to undertake self-insurance, and the Grantee affirms that it will comply with such provisions before commencing the performance of the work under this Agreement and will make its contractors and subcontractors aware of this provision.
D.27. MODIFICATION OF OVERALL WORK PLAN: At the request of the Grantee, the State may at its sole discretion approve non-material changes to the portions of Exhibits A, B, and C which concern the budget and schedule without formally amending this Grant Agreement. Non-material changes with respect to the budget are changes that only result in reallocation of the budget and will not result in an increase in the amount of the State Grant Agreement. Non-material changes with respect to the Project schedule are changes that will not extend the term of this Grant Agreement. Requests for nonmaterial changes to the budget and schedule must be submitted by the Grantee to the State in writing and are not effective unless and until specifically approved by the State’s Program Manager in writing.
D.28. NONDISCRIMINATION: During the performance of this Grant Agreement, Grantee and its contractors or subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex (gender), sexual orientation, gender identity, race, color, ancestry, religion, creed, national origin (including language use restriction), pregnancy, physical disability (including HIV and AIDS), mental disability, medical condition (cancer/genetic characteristics), age (over 40), marital/domestic partner status, and denial of medical and family care leave or pregnancy disability leave. Grantee and its contractors or subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Grantee and its contractors or subcontractors shall comply with the provisions of the California Fair Employment and Housing Act (Gov. Code, § 12990.) and the applicable regulations promulgated there under (Cal. Code Regs., tit. 2, § 11000 et seq.). The applicable regulations of the Fair Employment and Housing are incorporated into this Agreement by reference. Grantee and its contractors or subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other Agreement.
Grantee shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Grant Agreement.
D.29. OPINIONS AND DETERMINATIONS: Where the terms of this Grant Agreement provide for action to be based upon, judgment, approval, review, or determination of either party hereto, such terms are not intended to be and shall never be construed as permitting such opinion, judgment, approval, review, or determination to be arbitrary, capricious, or unreasonable.
D.30. PERFORMANCE BOND: Where contractors are used, the Grantee or Local Project Sponsor shall not authorize construction to begin until each contractor has furnished a performance bond in favor of the Grantee or the Local Project Sponsor in the following amounts: faithful performance (100%) of contract value, and labor and materials (100%) of contract value. This requirement shall not apply to any contract for less than $25,000.00. Any bond issued pursuant to this paragraph must be issued by a California-admitted surety. (Pub. Contract Code, § 7103; Code Civ. Proc., § 995.311.) D.31. PRIORITY HIRING CONSIDERATIONS: If this Grant Agreement includes services in excess of $200,000, the Grantee shall give priority consideration in filling vacancies in positions funded by the Grant Agreement to qualified recipients of aid under Welfare and Institutions Code section 11200 in accordance with Public Contract Code section 10353.
D.32. PROHIBITION AGAINST DISPOSAL OF PROJECT WITHOUT STATE PERMISSION: The Grantee shall not sell, abandon, lease, transfer, exchange, mortgage, hypothecate, or encumber in any manner whatsoever all or any portion of any real or other property necessarily connected or used in conjunction with the Project, or with Grantee’s service of water, without prior permission of State.
Grantee shall not take any action, including but not limited to actions relating to user fees, charges, and assessments that could adversely affect the ability of Grantee meet its obligations under this DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Grant Agreement, without prior written permission of State. State may require that the proceeds from the disposition of any real or personal property be remitted to State.
D.33. PROJECT ACCESS: The Grantee shall ensure that the State, the Governor of the State, or any authorized representative of the foregoing, will have safe and suitable access to the Project site at all reasonable times during Project construction and thereafter for the term of this Agreement.
D.34. REMAINING BALANCE: In the event the Grantee does not submit invoices requesting all of the funds encumbered under this Grant Agreement, any remaining funds revert to the State. The State will notify the Grantee stating that the Project file is closed and any remaining balance will be disencumbered and unavailable for further use under this Grant Agreement.
D.35. REMEDIES NOT EXCLUSIVE: The use by either party of any remedy specified herein for the enforcement of this Grant Agreement is not exclusive and shall not deprive the party using such remedy of, or limit the application of, any other remedy provided by law.
D.36. RETENTION: The State shall withhold ten percent (10%) of the funds, for each project, until the project is complete, and a Final Project Report is approved and accepted by DWR. If a project has multiple components (within a project), at the State's discretion and upon a written request by the Grantee, any retained amount attributable to a single component may be released when that component is complete and the Final Component Completion Report is approved. Upon approval of the Final Project Report and/or Final Component Completion Report, any retained amounts due to the Grantee will be promptly disbursed to the Grantee, without interest.
D.37. RIGHTS IN DATA: Grantee agrees that all data, plans, drawings, specifications, reports, computer programs, operating manuals, notes and other written or graphic work produced in the performance of this Grant Agreement shall be made available to the State and shall be in the public domain to the extent to which release of such materials is required under the California Public Records Act. (Gov.
Code, § 6250 et seq.) Grantee may disclose, disseminate and use in whole or in part, any final form data and information received, collected and developed under this Grant Agreement, subject to appropriate acknowledgement of credit to State for financial support. Grantee shall not utilize the materials for any profit-making venture or sell or grant rights to a third party who intends to do so. The State shall have the right to use any data described in this paragraph for any public purpose.
D.38. SEVERABILITY: Should any portion of this Grant Agreement be determined to be void or unenforceable, such shall be severed from the whole and the Grant Agreement shall continue as modified.
D.39. SUSPENSION OF PAYMENTS: This Grant Agreement may be subject to suspension of payments or termination, or both if the State determines that:
A. Grantee, its contractors, or subcontractors have made a false certification, or B. Grantee, its contractors, or subcontractors violates the certification by failing to carry out the requirements noted in this Grant Agreement.
D.40. SUCCESSORS AND ASSIGNS: This Grant Agreement and all of its provisions shall apply to and bind the successors and assigns of the parties. No assignment or transfer of this Grant Agreement or any part thereof, rights hereunder, or interest herein by the Grantee shall be valid unless and until it is approved by State and made subject to such reasonable terms and conditions as State may impose.
D.41. TERMINATION BY GRANTEE: Subject to State approval which may be reasonably withheld, Grantee may terminate this Agreement and be relieved of contractual obligations. In doing so, Grantee must provide a reason(s) for termination. Grantee must submit all progress reports summarizing accomplishments up until termination date.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
D.42. TERMINATION FOR CAUSE: Subject to the right to cure under Paragraph 12, “Default Provisions,” the State may terminate this Grant Agreement and be relieved of any payments should Grantee fail to perform the requirements of this Grant Agreement at the time and in the manner herein, provided including but not limited to reasons of default under Paragraph 12, “Default Provisions.” D.43. TERMINATION WITHOUT CAUSE: The State may terminate this Agreement without cause on 30 days’ advance written notice. The Grantee shall be reimbursed for all reasonable expenses incurred up to the date of termination.
D.44. THIRD PARTY BENEFICIARIES: The parties to this Agreement do not intend to create rights in, or grant remedies to, any third party as a beneficiary of this Agreement, or any duty, covenant, obligation or understanding established herein.
D.45. TIMELINESS: Time is of the essence in this Grant Agreement.
D.46. TRAVEL – DAC, EDA, TRIBES PROJECT: Travel is only an eligible reimbursable expense for projects providing at least 75% of benefits to DACs, EDAs, and/or Tribes (based on population or geographic area). Only ground transportation and lodging are eligible for grant reimbursement. Per diem costs will not be eligible for grant reimbursement. Any reimbursement for necessary travel shall be at rates not to exceed those set by the California Department of Human Resources. These rates may be found at: http://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx. Reimbursement will be at the State travel amounts that are current as of the date costs are incurred. No travel outside of the IRWM region shall be reimbursed unless prior written authorization is obtained from the State.
D.47. UNION ORGANIZING: Grantee, by signing this Grant Agreement, hereby acknowledges the applicability of Government Code sections 16645 through 16649 to this Grant Agreement.
Furthermore, Grantee, by signing this Grant Agreement, hereby certifies that:
A. No State funds disbursed by this Grant Agreement will be used to assist, promote, or deter union organizing.
B. Grantee shall account for State funds disbursed for a specific expenditure by this Grant Agreement to show those funds were allocated to that expenditure.
C. Grantee shall, where State funds are not designated as described in (b) above, allocate, on a pro rata basis, all disbursements that support the program.
D. If Grantee makes expenditures to assist, promote, or deter union organizing, Grantee will maintain records sufficient to show that no State funds were used for those expenditures and that Grantee shall provide those records to the Attorney General upon request.
D.48. VENUE: The State and the Grantee hereby agree that any action arising out of this Agreement shall be filed and maintained in the Superior Court in and for the County of Sacramento, California, or in the United States District Court in and for the Eastern District of California. The Grantee hereby waives any existing sovereign immunity for the purposes of this Agreement.
D.49. WAIVER OF RIGHTS: None of the provisions of this Grant Agreement shall be deemed waived unless expressly waived in writing. It is the intention of the parties here to that from time to time either party may waive any of its rights under this Grant Agreement unless contrary to law. Any waiver by either party of rights arising in connection with the Grant Agreement shall not be deemed to be a waiver with respect to any other rights or matters, and such provisions shall continue in full force and effect.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
EXHIBIT E
AUTHORIZING RESOLUTION
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
EXHIBIT F
REPORT FORMATS AND REQUIREMENTS
The following reporting formats should be utilized. Please obtain State approval prior to submitting a report in an alternative format.
PROGRESS REPORTS
Progress reports shall generally use the following format. This format may be modified as necessary to effectively communicate information. For each project, discuss the following at the task level, as organized in Exhibit A:
• Percent complete (by work)
• Discussion of work accomplished during the reporting period. • Milestones or deliverables completed/submitted during the reporting period. • Meetings held or attended.
• Scheduling concerns and issues encountered that may delay completion of the task.
For each project, discuss the following at the project level, as organized in Exhibit A:
• Work anticipated for the next reporting period.
• Photo documentation, as appropriate.
• Budget projections for grant share for the next two quarters • Any schedule or budget modifications approved by DWR during the reporting period.
PROJECT COMPLETION REPORT
The Project Completion Report (or a Component Completion Report, if a Project has multiple Components) shall generally use the following format provided below for each project after completion.
Executive Summary
The Executive Summary should include a brief summary of project information and include the following items:
• Brief description of work proposed to be done in the original Grant application. • List any official amendments to this Grant Agreement, with a short description of the amendment.
Reports and/or Products
The following items should be provided, unless already submitted as a deliverable:
• A copy of any final technical report or study, produced for or utilized in this Project as described in the Exhibit A
• Electronic copies of any data collected, not previously submitted • Discussion of problems that occurred during the work and how those problems were resolved • Final project schedule showing actual progress versus planned progress as shown in Exhibit C Additional information that may be applicable for implementation projects includes the following:
• Record drawings
• Final geodetic survey information
• Project photos
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Cost & Disposition of Funds
A list showing:
• Summary of Project costs including the following items:
o Accounting of the cost of project expenditure;
o Include all internal and external costs not previously disclosed (i.e., additional cost share); and o A discussion of factors that positively or negatively affected the project cost and any deviation from the original Project cost estimate.
Additional Information
• Benefits derived from the Project, with quantification of such benefits provided. • If applicable, Certification from a California Registered Professional (Civil Engineer or Geologist, as appropriate), consistent with Exhibit D, that the project was conducted in accordance with the approved Work Plan in Exhibit A and any approved amendments thereto. • Submittal schedule for the Post-Performance Report.
GRANT COMPLETION REPORT
The Grant Completion Report shall generally use the following format. This format may be modified as necessary to effectively communicate information on the various projects funded by this Grant Agreement, and includes the following:
• Executive Summary: consisting of a maximum of ten (10) pages summarizing information for the grant as well as the individual projects.
• Brief discussion of: each project completed and how they achieved IRWM Plan objectives and/or Regional goals and whether the level, type, or magnitude of benefits of the project are comparable to the original project proposal; any remaining work to be completed and mechanism for their implementation; the benefits to DAC and/or EDA as part of this Grant Agreement if a DAC or EDA Cost Share Waiver was approved for a project; and a summary of final funds disbursement for each project.
Additional Information: Summary of the submittal schedule for the Post-Performance Reports applicable for the projects in this Grant Agreement.
POST-PERFORMANCE REPORT
The Post-Performance Report (PPR) should be concise and focus on how each project is performing compared to its expected performance; whether the project is being operated and maintained and providing intended benefits as proposed. A PPR template may be provided by the assigned DWR Grant Manager upon request. The PPR should follow the general format of the template and provide requested information as applicable. The following information, at a minimum, shall be provided:
Reports and/or products
• Header including the following:
o Grantee Name
o Implementing Agency (if different from Grantee)
o Grant Agreement Number
o Project Name
o Funding grant source (i.e., 2022 Proposition 1 IRWM Implementation Grant) o Report number
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
• Post-Performance Report schedule
• Time period of the annual report (e.g., January 2024 through December 2024) • Project Description Summary
• Discussion of the project benefits
• An assessment of any differences between the expected versus actual project benefits as stated in the original application. Where applicable, the reporting should include quantitative metrics (e.g., new acrefeet of water produced that year, etc.). • Summary of any additional costs and/or benefits deriving from the project since its completion, if applicable.
• Any additional information relevant to or generated by the continued operation of the project.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
EXHIBIT G
REQUIREMENTS FOR DATA SUBMITTAL
Surface and Groundwater Quality Data:
Groundwater quality and ambient surface water quality monitoring data that include chemical, physical, or biological data shall be submitted to the State as described below, with a narrative description of data submittal activities included in project reports.
Surface water quality monitoring data shall be prepared for submission to the California Environmental Data Exchange Network (CEDEN). The CEDEN data templates are available on the CEDEN website.
Inclusion of additional data elements described on the data templates is desirable. Data ready for submission should be uploaded to your CEDEN Regional Data Center via the CEDEN website. CEDEN website: http://www.ceden.org.
If a project’s Work Plan contains a groundwater ambient monitoring element, groundwater quality monitoring data shall be submitted to the State for inclusion in the State Water Resources Control Board’s Groundwater Ambient Monitoring and Assessment (GAMA) Program Information on the GAMA Program can be obtained at: https://www.waterboards.ca.gov/water_issues/programs/gama/. If further information is required, the Grantee can contact the State Water Resources Control Board (SWRCB) GAMA Program.
A listing of SWRCB staff involved in the GAMA program can be found at:
https://www.waterboards.ca.gov/water_issues/programs/gama/contact.shtml.
Groundwater Level Data
For each project that collects groundwater level data, the Grantee will need to submit this data to DWR’s Water Data Library (WDL), with a narrative description of data submittal activities included in project reports, as described in Exhibit F, “Report Formats and Requirements.” Information regarding the WDL and in what format to submit data in can be found at: http://www.water.ca.gov/waterdatalibrary/.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
EXHIBIT H
STATE AUDIT DOCUMENT REQUIREMENTS AND COST SHARE GUIDELINES FOR THE GRANTEE The following provides a list of documents typically required by State Auditors and general guidelines for the Grantee. List of documents pertains to both State funding and the Grantee’s Local Cost Share and details the documents/records that State Auditors would need to review in the event of this Grant Agreement is audited.
The Grantee should ensure that such records are maintained for each funded project.
State Audit Document Requirements
Internal Controls
1. Organization chart (e.g., Agency’s overall organization chart and organization chart for the State funded Program/Project).
2. Written internal procedures and flowcharts for the following:
a) Receipts and deposits
b) Disbursements
c) State reimbursement requests
d) Expenditure tracking of State funds
e) Guidelines, policy, and procedures on State funded Program/Project
3. Audit reports of the Agency internal control structure and/or financial statements within the last two years.
4. Prior audit reports on the State funded Program/Project.
State Funding:
1. Original Grant Agreement, any amendment(s) and budget modification documents.
2. A listing of all bond-funded grants, loans, or subventions received from the State.
3. A listing of all other funding sources for each Program/Project.
Contracts:
1. All subcontractor and consultant contracts and related or partners’ documents, if applicable.
2. Contracts between the Agency and member agencies as related to the State funded Program/Project.
Invoices:
1. Invoices from vendors and subcontractors for expenditures submitted to the State for payments under the Grant Agreement.
2. Documentation linking subcontractor invoices to State reimbursement, requests and related Grant Agreement budget line items.
3. Reimbursement requests submitted to the State for the Grant Agreement.
Cash Documents:
1. Receipts (copies of warrants) showing payments received from the State.
2. Deposit slips (or bank statements) showing deposit of the payments received from the State.
3. Cancelled checks or disbursement documents showing payments made to vendors, subcontractors, consultants, and/or agents under the grants or loans.
4. Bank statements showing the deposit of the receipts.
Accounting Records:
1. Ledgers showing entries for funding receipts and cash disbursements.
2. Ledgers showing receipts and cash disbursement entries of other funding sources.
3. Bridging documents that tie the general ledger to requests for Grant Agreement reimbursement.
Administration Costs:
1. Supporting documents showing the calculation of administration costs.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Personnel:
1. List of all contractors and Agency staff that worked on the State funded Program/Project.
2. Payroll records including timesheets for contractor staff and the Agency personnel who provided services charged to the program
Project Files:
1. All supporting documentation maintained in the project files.
2. All Grant Agreement related correspondence.
Cost Share Guidelines
Cost Share consists of non-State funds, including in-kind services. In-kind services are defined as work performed (i.e., dollar value of non-cash contributions) by the Grantee (and potentially other parties) directly related to the execution of the funded project. Examples include volunteer services, equipment use, and use of facilities. The cost if in-kind service can be counted as cost share in-lieu of actual funds (or revenue) provided by the Grantee. Other cost share and in-kind service eligibility conditions may apply. Provided below is guidance for documenting cost share with and without in-kind services.
1. Although tracked separately, in-kind services shall be documented and, to the extent feasible, supported by the same methods used by the Grantee for its own employees. Such documentation should include the following:
a. Detailed description of the contributed item(s) or service(s) b. Purpose for which the contribution was made (tied to project work plan) c. Name of contributing organization and date of contribution d. Real or approximate value of contribution. Who valued the contribution and how was the value determined? (e.g., actual, appraisal, fair market, etc.). Justification of rate. (See item #2, below) e. Person’s name and the function of the contributing person f. Number of hours contributed
g. If multiple sources exist, these should be summarized on a table with summed charges h. Source of contribution if it was provided by, obtained with, or supported by government funds
2. Rates for volunteer or in-kind services shall be consistent with those paid for similar work in the Grantee’s organization. For example, volunteer service of clearing vegetation performed by an attorney shall be valued at fair market value for this service, not the rate for professional legal services. In those instances, in which the required skills are not found in the recipient organization, rates shall be consistent with those paid for similar work in the labor market. Paid fringe benefits that are reasonable, allowable, and allocable may be included in the valuation.
3. Cost share contribution (including in-kind services) shall be for costs and services directly attributed to activities included in the Grant Agreement. These services, furnished by professional and technical personnel, consultants, and other skilled labor may be counted as in-kind if the activities are an integral and necessary part of the project funded by the Grant Agreement.
4. Cash contributions made to a project shall be documented as revenue and in-kind services as expenditures. These costs should be tracked separately in the Grantee’s accounting system.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
EXHIBIT I
LOCAL PROJECT SPONSORS AND PROJECT LOCATIONS
The Grantee has assigned, for each project, a Local Project Sponsor (LPS) according to the roles of the participating agencies identified in the IRWM Plan. LPSs may act on behalf of the Grantee for the purposes of individual project management, oversight, compliance, and operations and maintenance. LPSs are identified for each sponsored Project below:
Local Project Sponsor Agency Designation
Sponsored Project: Project 1: Fire Hardening of Critical Water Supply Infrastructure Sponsor Agency: San Lorenzo Valley Water District
Agency Address: 13060 CA-9, Boulder Creek, CA 95006
Project Location: Multiple locations in San Lorenzo Valley, California (37.1241892,-122.1215202) DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Local Project Sponsor Agency Designation
Sponsored Project: Project 2: Equalization Tank Replacement Project Sponsor Agency: County of Santa Cruz, County Service Area 7 - Boulder Creek Sanitation Agency Address: 701 Ocean Street, Room 410
Project Location: Boulder Creek, California (37.151639,-122.162167) DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Local Project Sponsor Agency Designation
Sponsored Project: Project 3: Decision-Support Tool - Understanding Climate Influenced River Flooding Sponsor Agency: City of Santa Cruz
Agency Address: 809 Center St, Santa Cruz, CA 95060
Project Location: Santa Cruz, California (36.9742891, -122.0296430) DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Local Project Sponsor Agency Designation
Sponsored Project: Project 4: Recreational Vehicle Sewage Dump Station Sponsor Agency: City of Santa Cruz Public Works
Agency Address: 809 Center St, Santa Cruz, CA 95060
Project Location: Santa Cruz, California (36.9742891,-122.0296430) DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Local Project Sponsor Agency Designation
Sponsored Project: Project 5: Atkinson Lane Integrated Flood Management and Watershed Restoration Project Sponsor Agency: City of Watsonville
Agency Address: 250 Main Street Watsonville, CA 95076
Project Location: Atkinson Lane, Watsonville, California (36.932161, -121.764346) DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
Local Project Sponsor Agency Designation
Sponsored Project: Project 6: Drinking Water Treatment System & Secondary Water Source Rountree Facility Sponsor Agency: Santa Cruz County General Services Department (County) Agency Address: 701 Ocean Street, Room 330, Santa Cruz, CA 95060-4073 Project Location: 90 Rountree Lane, Watsonville, California (36.913919, -121.810569) DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
EXHIBIT J
APPRAISAL SPECIFICATIONS
For implementation projects that include Land Acquisition Only:
For property acquisitions funded by this Grant Agreement, the Grantee shall submit an appraisal for review and approval by the Department of General Services or DWR’s Real Estate Branch prior to reimbursement or depositing State funds into an escrow account. This information should be submitted at least 90 days prior to a reimbursement request to account for review time. All appraisal reports, regardless of report format, shall include all applicable Appraisal Specifications below. Appraisals for a total compensation of $150,000 or more shall be reported as a Self-Contained Appraisal Report. Appraisals for a total compensation of less than $150,000 may be reported as a Summary Appraisal Report, which includes all information necessary to arrive at the appraiser’s conclusion. Appraisal Specifications 14, 16, 21, 23-25, and 28 shall be a narrative analysis regardless of the reporting format.
1. Title page with sufficient identification of appraisal assignment.
2. Letter of transmittal summarizing important assumptions and conclusions, value estimate, date of value and date of report.
3. Table of contents.
4. Assumptions and Limiting Conditions, Extraordinary Assumptions, and Hypothetical Conditions as needed.
5. Description of the scope of work, including the extent of data collection and limitations, if any, in obtaining relevant data.
6. Definition of Fair Market Value, as defined by California Code of Civil Procedure, § 1263.320.
7. Photographs of subject property and comparable data, including significant physical features and the interior of structural improvements, if applicable.
8. Copies of Tax Assessor’s plat map with the subject marked along with all contiguous assessor’s parcels that depict the ownership.
9. A legal description of the subject property, if available.
10. For large, remote or inaccessible parcels, provide aerial photographs or topographical maps depicting the subject boundaries.
11. Three (3) year subject property history, including sales, listings, leases, options, zoning, applications for permits, or other documents or facts that might indicate or affect use or value.
12. Discussion of any current Agreement of Sale, option, or listing of subject property. This issue required increased diligence since state agencies often utilize non-profit organizations to quickly acquire sensitive habitat parcels using Option Agreements. However, due to confidentiality clauses, the terms of the Option are often not disclosed to the State. If the appraiser discovers evidence of an Option or the possible existence of an Option, and the terms cannot be disclosed due to a confidentiality clause, then the appraiser is to cease work and contact the client.
13. Regional, area, and neighborhood analyses. This information may be presented in a summary format.
14. Market conditions and trends including identification of the relevant market area, a discussion of supply and demand within the relevant market area, and a discussion of the relevant market factors impacting demand for site acquisition and leasing within the relevant market area. This information may be presented in a summary format.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2
Grant Agreement No. 4600015400
15. Discussion of subject land/site characteristics (size, topography, current use, elevations, zoning and land use issues, development entitlements, General Plan designation, utilities, offsite improvements, access, land features such as levees and creeks, offsite improvements, easements and encumbrances, covenants, conditions and restrictions, flood and earthquake information, toxic hazards, water rights, mineral rights, toxic hazards, taxes and assessments, etc.).
16. Description of subject improvements including all structures, square footage, physical age, type of construction, quality of construction, condition of improvements and/or identification of any permanent plantings. Discussion of construction cost methodology, costs included and excluded, accrued depreciation from all causes, remaining economic life, items of deferred maintenance and cost to cure, and incurable items. Construction cost data shall include cost data source, date of estimate or date of publication of cost manual, section and page reference of cost manual, copies of cost estimate if provided from another source, replacement or reproduction cost method used, and supporting calculations including worksheets or spreadsheets.
17. Subject property leasing and operating cost history, including all items of income and expense.
18. Analysis and conclusion of the larger parcel for partial taking appraisals. For partial taking appraisals, Appraisal Specifications generally apply to the larger parcel rather than an ownership where the larger parcel is not the entire ownership.
19. Include a copy of a recent preliminary title report (within the past year) as an appraisal exhibit.
Discuss the title exceptions and analyze the effect of title exceptions on fair market value.
20. For appraisals of partial takings or easements, a detailed description of the taking or easement area including surface features and topography, easements, encumbrances or improvements including levees within the subject partial take or easement, and whether the take area is characteristic of the larger parcel. Any characteristics of the taking area, including existing pre-project levees that render the take area different from the larger parcel shall be addressed in the valuation.
21. Opinion of highest and best use for the subject property, based on an in-depth analysis supporting the concluded use which includes the detail required by the complexity of the analysis. Such support typically requires a discussion of the four criteria of tests utilized to determine the highest and best use of a property. If alternative feasible uses exist, explain and support market, development, cash flow, and risk factors leading to an ultimate highest and best use decision.
22. All approaches to market value applicable to the property type and in the subject market. Explain and support the exclusion of any usual approaches to value.
23. Map(s) showing all comparable properties in relation to the subject property.
24. Photographs and plat maps of comparable properties.
25. In-depth discussion of comparable properties, similarities and differences compared to the subject property, adjustments to the comparable data, and discussion of the reliability and credibility of the data as it relates to the indicated subject property value. Improved comparable sales which are used to compare to vacant land subject properties shall include an allocation between land and improvements, using methodology similar to methodology used in item 16 above to estimate improvement value when possible, with an explanation of the methodology used.
26. Comparable data sheets.
a. For sales, include information on grantor/Grantee, sale/recordation dates, listed or asking price as of the date of sale, highest and best use, financing, conditions of sale, buyer motivation, sufficient location information (street address, post mile, and/or distance from local landmarks such as bridges, road intersections, structures, etc.), land/site characteristics, improvements, source of any allocation of sale price between land and improvements, and confirming source.
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F Attachment 2