Watsonville City Council
August 27, 2024

Reso No. (CM)
Reference: Reso No. 193-21 (CM) (Amend)
Meeting Date: 082724 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING FIRST AMENDMENT TO CONTRACT

FOR CONSULTANT SERVICES BETWEEN THE CITY OF

WATSONVILLE AND STERNS, CONRAD AND SCHMIDT CONSULTING
ENGINEERS, INC., DBA SCS FIELD SERVICES, A CORPORATION,

FOR LANDFILL GAS SUPPORT SERVICES AT THE CITY LANDFILL, EXTENDING THE CONTRACT TERM TO JUNE 30, 2025, INCREASING THE CONTRACT AMOUNT BY $100,000 AND UPDATING THE
ENGINEERING HOURLY RATES FOR 2024, AND AUTHORIZING AND

DIRECTING THE INTERIM CITY MANAGER TO EXECUTE SAME
WHEREAS, on July 6, 2021, the City Council adopted Resolution No. 193-21 (CM) awarding contract to Sterns, Conrad and Schmidt Consulting Engineers, Inc., dba SCS Field Services, a corporation, for landfill gas support services at the City Landfill in an amount not to exceed $300,000 and with a completion date of June 30, 2024; and WHEREAS, § 3-5.170 of the Municipal Code provides that amendments to contracts that reasonably relate to the scope of the original contract and were originally approved by Council shall be approved by Council; and
WHEREAS, this First Amendment to Contract will extend the contract term to June 30, 2025, increase the contract amount by $100,000 (from $300,000 to $400,000) and update the Engineering Hourly Rates for 2024.

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 amending a contract does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the

Reso No. (CM)
Reference: Reso No. 193-21 (CM) (Amend)
Meeting Date: 082724
2 environment and if a “project,” is exempt under the “common sense” exception (14 Cal.

Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.

2. This First Amendment to Contract between the City of Watsonville and Sterns, Conrad and Schmidt Consulting Engineers, Inc., dba SCS Field Services, a corporation, a copy of which is attached hereto and incorporated herein by this reference, is hereby approved.

3. The Interim City Manager is hereby authorized and directed to execute said First Amendment for and on behalf of the City of Watsonville with minor revisions that may be approved by the Interim City Manager and the City Attorney. ************************************

FIRST AMENDMENT TO CONSULTANT SERVICES CONTRACT

BETWEEN THE CITY OF WATSONVILLE AND
STERNS, CONRAD AND SCHMIDT CONSULTING ENGINEERS, INC.,

DBA SCS FIELD SERVICES
THIS FIRST AMENDMENT TO CONTRACT for consultant services is entered into by and between the City of Watsonville ("City") and Sterns, Conrad and Schmidt Consulting Engineers, Inc., dba SCS Field Services (“Consultant”) this day of _____________________. The City and Consultant agree as follows:

RECITALS
WHEREAS, City and Consultant have previously executed a Consultant Services Contract to revise for Landfill Gas Support Services at the City Landfill dated July 23, 2021; and
WHEREAS, the original contract was in the amount of $300,000 with an expiration date of June 30, 2024; and
WHEREAS, a Request for Qualifications (RFQ) was issued on July 11, 2021, for landfill gas support services at the City Landfill; and WHEREAS, SCS Field Services was selected as the most qualified due to their extensive experience in the region, and for providing high-quality landfill gas services; and
WHEREAS, the First Amendment of the Contract for Consultant Services is in the best interest of the City of Watsonville.

NOW, THEREFORE, the City and the Consultant agree that the Contract shall be amended as follows:

Section 2 is hereby amended to add the following:

Docusign Envelope ID: B8FE493F-B542-4B41-B27F-6B648FB3ABC5

"Section 2. Term of Contract and Exhibit “B”, Schedule of Performance are hereby amended to extent the Contract to June 30, 2025."
Section 4 is hereby amended to read:
"Section 4 and Exhibit "C" both entitled "Compensation" of the Contract, are hereby amended to provide an additional amount of compensation of One Hundred Thousand Dollars ($100,000) for a Total Contract Amount not-to-exceed $400,000, and the Labor and Equipment Fee Schedule for FY24-25 is updated, as specified in detail in Exhibit “1”, entitled FIRST AMENDMENT TO COMPENSATION, which is attached hereto and incorporated herein.

All other terms and conditions of the Contract dated July 23, 2021, as amended, shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Consultant Services Contract the day and year first hereinabove written.

CITY OF WATSONVILLE
By___________________________
Tamara Vides, Interim City Manager
ATTEST:

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

By___________________________
Samantha W. Zutler, City Attorney

STERNS, CONRAD AND SCHMIDT
CONSULTING ENGINEERS, INC.,
dba SCS FIELD SERVICES
By___________________________
Anton Svorinich, Vice President
Docusign Envelope ID: B8FE493F-B542-4B41-B27F-6B648FB3ABC5

EXHIBIT "1"

FIRST AMENDMENT TO COMPENSATION
See attachment labeled EXHIBIT “1”.

Docusign Envelope ID: B8FE493F-B542-4B41-B27F-6B648FB3ABC5

3900 Kilroy Airport Way, Suite 100, Long Beach, CA 90806 | 562-426-9455 | eFax 562-492-9292 Environmental Consulting & Contracting

C I T Y OF WA T S O N V I L L E
OM &M

SCS-FS DIVISION F E E S C HE DULE
(Effective July 1, 2024 through June 30, 2025)
Technical Field Personnel Rate ($)/Hour
Laborer .......................................................................................................................................79 Systems Specialist ......................................................................................................................89 Technician ................................................................................................................................106 Equipment Operator .................................................................................................................105 GIS Technician ........................................................................................................................109 Foreman ...................................................................................................................................110 Fusion Technician ....................................................................................................................116 Plant Operator ..........................................................................................................................116 Senior Technician ....................................................................................................................121 Superintendent .........................................................................................................................137 Mechanic ..................................................................................................................................137 Support Specialist ....................................................................................................................145 Senior Superintendent ..............................................................................................................168 Controls Specialist/Network Engineer .....................................................................................184 Network Engineer II ................................................................................................................186 Drone Pilot ...............................................................................................................................215 Laborer/Pipefitter/Fusion Technician (Prevailing Wage*) ………………………………….210 Equipment Operator (Prevailing Wage*) ……………………………………………………285 Management/Support Personnel Rate ($)/Hour
Secretarial ..................................................................................................................................68 Project Administrator ...............................................................................................................104 Field Data Analyst ...................................................................................................................105 Senior Project Administrator ...................................................................................................131 Senior Field Data Analyst ........................................................................................................135 Administrative Coordinator .....................................................................................................126 Designer/Drafter ......................................................................................................................126 Project Coordinator/Accountant ..............................................................................................137 Field Project Coordinator .........................................................................................................158 Project Professional/H&S Specialist ........................................................................................168 Controls & Instrument Engineer ..............................................................................................194 Product Development Manager ...............................................................................................205 System Integrator/Product Manager/Business Manager ..........................................................218 Quality Advisor ........................................................................................................................221 Project Manager/H&S/Quality Manager .................................................................................242 Senior Project Professional ......................................................................................................242 Sr. Project Manager .................................................................................................................273 EXHIBIT "1"
page 1 of 12
Docusign Envelope ID: B8FE493F-B542-4B41-B27F-6B648FB3ABC5

SCS Field Services Fee Schedule
July 1, 2024 through June 30, 2025

Sr. Project Advisor ...................................................................................................................273 Developer .................................................................................................................................281 RMC Business Manager ..........................................................................................................289 National RMC Director............................................................................................................299 Director of Technology ............................................................................................................299 Regional Manager/Project Director .........................................................................................305 General Terms

1. Labor rates are in effect until June 30, 2025. Any work performed after that date is subject to a new Standard Fee Schedule.

2. The above rates include salary, overhead, and profit. Other direct charges, such as subcontractors, construction equipment, materials, air travel, freight, auto rental, permits, fees, taxes, tolls, and other costs incurred for the project, will be billed at cost plus 15 percent.

The cost of equipment owned by SCS Field Services will not be subject to administrative markup. Automobile mileage cost is $0.625 per mile and is subject to change per Federal IRS laws.

Trucks will be charged at $30.00/hour. (No administrative mark-up will be applied to charges for company owned vehicles.)

3. Invoices will be prepared monthly for work in progress, unless otherwise agreed. Invoices are due and payable upon receipt. Any invoices not paid within 30 days of receipt are subject to a service charge of 1.5 percent per month on the unpaid balance.

4. Payment of SCS Field Services invoices for services performed will not be contingent upon the client’s receipt of payment from other parties. The client agrees to pay legal costs, including attorney’s fees, incurred by SCS Field Services in collecting any amounts past due and owing on the client’s accounts.

5. Rates for Principals may be negotiated on a project-specific basis. For special situations, such as expert testimony or international assignments, hourly rates will be on an individually negotiated basis.

6. On short term or one-time assignments, services which require less than eight (8) hours, but more than four (4) hours, will be billed at eight (8) hours. A minimum of four (4) hours will be billed for any service requested which is not conducted in conjunction with an ongoing, long term project (including call-outs after normal work hours), and will be charged portal-to-portal from SCS Field Services offices.

7. For operation, construction, and/or repair work performed on weekends and/or nights (if work exceeds 8 hours in a day), the above rates will be marked up 50 percent. For work performed on Company recognized holidays or beyond 12 hours in a day, the above rates will be marked up 100 percent.

8. These rates are based on non-union, non-prevailing wage scales unless specified as prevailing wage.

EXHIBIT "1"
page 2 of 12
Docusign Envelope ID: B8FE493F-B542-4B41-B27F-6B648FB3ABC5

SCS Field Services Fee Schedule
July 1, 2024 through June 30, 2025

9. For long-term on-site project assignments, rates may be discounted on an individually negotiated basis. Long-term on-site personnel are permitted to return home every four (4) weeks. Travel expense shall be invoiced to the client at cost plus 15 percent.

10. For projects that are not local to an SCS Field Services office, thereby requiring crew mobilizations, lodging costs and a $55 per person per diem cost will be charged. Lodging and per diem costs will be marked up 15 percent.

11. For projects that require crews to mobilize from a local office and stay in a hotel local to a project site to efficiently perform client requested work, a $55 per day per person per diem cost will be charged to the project as well as a nightly hotel cost. Hotel costs typically range from $75 to $175 per night. SCS Field Services will make every effort to find the most cost efficient hotels. In some high expense locations, hotel rates may be above $175 per night.

Hotel and per diem expense will be marked up 15 percent.

12. Costs for equipment and analysis will be billed in accordance with the rates contained on SCS Field Services Standard Fee Schedule for Equipment and Analysis.

13. * Prevailing Wage rates as shown can only be maintained for the first year of this contract. As prevailing wage rates are set by the State of California Department of Industrial Relations (DIR), SCS reserves the right to adjust our prices based on the rate increases established by the DIR.

EXHIBIT "1"
page 3 of 12
Docusign Envelope ID: B8FE493F-B542-4B41-B27F-6B648FB3ABC5

3900 Kilroy Airport Way, Ste. 100, Long Beach, CA 90806 | 562-426-9544 | eFax 562-427-0805 Environmental Consulting & Contracting
Offices Nationwide (CA-SW)
City of Watsonville
Engineers Division Fee Schedule
(Effective July 1, 2024 through June 30, 2025)
Rate/Hour
Clerical...................................................................................................................................................93 Administrative/Secretarial ...................................................................................................................99 Technician .......................................................................................................................................... 115 CAD Drafter......................................................................................................................................... 120 Senior Engineering Technician.......................................................................................................... 125 Technical Associate I ......................................................................................................................... 128 Technical Associate II ........................................................................................................................ 134 Assistant Office Services Manager/Project Administrator.............................................................. 135 Office Services Manager/Senior Project Administrator................................................................... 140 Associate Staff Professional I............................................................................................................ 145 Project Analyst.................................................................................................................................... 145 Associate Staff Professional II........................................................................................................... 150 CAD Designer I.................................................................................................................................... 152 Staff Professional I............................................................................................................................. 155 Staff Professional II............................................................................................................................ 162 Senior Office Services Manager........................................................................................................ 164 CAD Designer II................................................................................................................................... 168 Staff Professional III........................................................................................................................... 170 Project Professional I......................................................................................................................... 177 Project Professional II........................................................................................................................ 184 Project Professional III....................................................................................................................... 192 Senior Project Professional I ............................................................................................................. 200 Senior Project Professional II ............................................................................................................ 214 Senior Project Professional III ........................................................................................................... 222 Industrial Hygienist/Safety Professional .......................................................................................... 232 Project Manager I............................................................................................................................... 235 Project Manager II.............................................................................................................................. 242 Senior Certified Industrial Hygienist/Safety Professional ............................................................... 252 Project Manager III............................................................................................................................. 260 Project Manager IV............................................................................................................................. 270 Senior Project/Technical Manager I ................................................................................................. 282 Senior Project/Technical Manager II ................................................................................................ 290 Senior Project Advisor……………......................................................................................................... 294 Project Director I ................................................................................................................................ 302 Project Director II ............................................................................................................................... 314 Project Director III .............................................................................................................................. 322 Principals and Executives.......................................................................................................See Note 7 EXHIBIT "1"
page 4 of 12
Docusign Envelope ID: B8FE493F-B542-4B41-B27F-6B648FB3ABC5

SCS Fee Schedule
July 1, 2024

General Terms

1. Scheduled rates are effective through June 30, 2025. Work performed thereafter is subject to a new Fee Schedule.

2. Costs for outside consultants and subcontractors, equipment/supplies, and for job-related employee travel and subsistence, are billed at actual cost plus a 15 percent administrative fee.

3. Charges for SCS field equipment and instruments will be in accordance with SCS’s Field Equipment Rental Rates Schedule in effect at the time the work is performed. Company trucks are charged at $105 for up to a half day (4 hours) of use, and $160 for up to a full day (company cars at $85/$125). These charges incorporate an allowance of 100 miles per job per day; a per mile surcharge is applied for additional miles based on the applicable federal rate. Vehicle charges for long-term and/or high-mileage projects may be negotiated on a case-by-case basis.

4. Invoices will be prepared monthly or more frequently for work in progress, unless otherwise agreed. Invoices are due and payable upon receipt. Invoices not paid within 30 days are subject to a service charge of 1.5 percent per month on the unpaid balance.

5. Payment of SCS invoices for services performed will not be contingent upon the client’s receipt of payment from other parties, unless otherwise agreed in writing. Client agrees to pay legal costs, including attorney’s fees, incurred by SCS in collecting any amounts past due and owing on client’s accounts.

6. For special situations such as expert court testimony and limited consultation, hourly rates will be on an individually negotiated basis.

7. Hourly rates for Principals and Executives will be on an individually negotiated basis. Typically, these rates are $345/hour for Principals, $370 for Vice Presidents, and $420/hour for Senior Vice Presidents and Senior Executives.

EXHIBIT "1"
page 5 of 12
Docusign Envelope ID: B8FE493F-B542-4B41-B27F-6B648FB3ABC5

Address, Ste. ##, City, ST 00000 | 000-000-0000 | eFax 000-000-0000 Environmental Consulting & Contracting

CITY OF WATSONVILLE

O M & M

F E E S C H E D U L E F O R E Q U I P M E N T A N D A N A L Y S I S (Effective July 1, 2024 through June 30, 2025)
Rate ($)
GEM 2000 NAV/5000 NAV/Envision Gas Analyzer(s):
 Daily Rate ..................................................................................................................... 225/day  Weekly Rate ........................................................................................................... 1,122/week  Monthly Rate ........................................................................................................ 3,368/month Gazoscan Kit
 Daily Rate ..................................................................................................................... 230/day  Weekly Rate ........................................................................................................... 1,134/week  Monthly Rate ........................................................................................................ 3,402/month GEM 5000 w/H2S/CO
 Daily Rate ..................................................................................................................... 245/day  Weekly Rate ........................................................................................................... 1,214/week  Monthly Rate ........................................................................................................ 3,640/month SEM 500/TVA 2020/TDL 500/ Site FID Emissions Monitor/Irwin Inficon SEM:
 Daily Rate ..................................................................................................................... 245/day  Weekly Rate ........................................................................................................... 1,214/week  Monthly Rate ........................................................................................................ 3,640/month Optical Gas Imaging (OGI) Camera .................................................................................................250/day Q Rae Gas Analyzer O2/H2S/CO/Combustibles ............................................................................... 60/day Micro Max Gas Analyzer O2/H2S/CO/COI Combustibles ................................................................. 60/day 4 Gas Meter ........................................................................................................................................ 60/day Magnehelic Pressure Meter .............................................................................................................. 14/day Digital Readout Thermocouple .......................................................................................................... 30/day Dewatering Pump (Trash Pump) ....................................................................................................... 55/day Dräger Detector Tubes/Pump ........................................................................................................ 25/each MiniRae 2000/3000 PID:
 Daily Rate ..................................................................................................................... 183/day  Weekly Rate ............................................................................................................... 912/week  Monthly Rate ........................................................................................................ 2,738/month EXHIBIT "1"
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Docusign Envelope ID: B8FE493F-B542-4B41-B27F-6B648FB3ABC5

Rate ($)
SCS Field Services
Fee Schedule for Equipment and Analysis
July 1, 2024 through June 30, 2025

RKI Eagle II:
 Daily Rate ..................................................................................................................... 183/day  Weekly Rate ............................................................................................................... 912/week  Monthly Rate ........................................................................................................ 2,738/month Air Sampling Station:
 Daily Rate ........................................................................................................................ 60/day  Weekly Rate ............................................................................................................... 298/week  Monthly Rate ........................................................................................................... 920/month Weather Station:
 Daily Rate .......................................................................................................................60/day  Weekly Rate ............................................................................................................. 298/week  Monthly Rate .......................................................................................................... 920/month Pipe Laser:
 Daily Rate ........................................................................................................................ 60/day  Weekly Rate ............................................................................................................... 298/week  Monthly Rate ........................................................................................................... 920/month PAS 3000 Personal Air Sampling Pump ........................................................................................... 32/day Tedlar Bag (10-Liter) ....................................................................................................................... 48/each Sample Flow Controller/Tier II Gauge ............................................................................................... 52/day Non-Contaminating Air Sampling Pump ........................................................................................... 32/day Interface Probe ................................................................................................................................... 60/day Handheld GPS:
 Daily Rate ........................................................................................................................ 32/day  Weekly Rate ............................................................................................................... 154/week  Monthly Rate ........................................................................................................... 460/month Submersible Pump:
 Daily Rate ........................................................................................................................ 60/day  Weekly Rate ............................................................................................................... 298/week  Monthly Rate ........................................................................................................... 920/month Water Level Indicator:
 Daily Rate ........................................................................................................................ 25/day  Weekly Rate ............................................................................................................... 120/week  Monthly Rate ........................................................................................................... 374/month EXHIBIT "1"
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Docusign Envelope ID: B8FE493F-B542-4B41-B27F-6B648FB3ABC5

Rate ($)
SCS Field Services
Fee Schedule for Equipment and Analysis
July 1, 2024 through June 30, 2025

Water Level Meter w/Temperature:
 Daily Rate ........................................................................................................................ 55/day  Weekly Rate ............................................................................................................... 272/week  Monthly Rate ........................................................................................................... 818/month 100-Foot Temperature Probe:
 Daily Rate ........................................................................................................................ 20/day  Weekly Rate ................................................................................................................. 98/week  Monthly Rate ........................................................................................................... 290/month Teflon Well Bailer ............................................................................................................................ 32/each Vacuum Box/Carbon Canister and Blower .................................................................................... 183/day Tool Truck ......................................................................................................................................... 30/hour No. 14 P.E. Fusion Machine (1”-4”):
 Daily Rate ..................................................................................................................... 134/day  Weekly Rate ............................................................................................................... 668/week  Monthly Rate ........................................................................................................ 2,007/month No. 26 P.E. Fusion Machine (2”-6”):
 Daily Rate ..................................................................................................................... 165/day  Weekly Rate ............................................................................................................... 822/week  Monthly Rate ........................................................................................................ 2,466/month No. 28 P.E. Fusion Machine (2”-8”)
 Daily Rate ..................................................................................................................... 218/day  Weekly Rate ........................................................................................................... 1,094/week  Monthly Rate ........................................................................................................ 3,283/month No. 412 P.E. Fusion Machine (4”-12”):
 Daily Rate ..................................................................................................................... 440/day  Weekly Rate ........................................................................................................... 2,200/week  Monthly Rate ........................................................................................................ 5,260/month No. 618 P.E. Fusion Machine (6”-18”):
 Daily Rate ..................................................................................................................... 660/day  Weekly Rate ........................................................................................................... 3,300/week  Monthly Rate ........................................................................................................ 9,070/month EXHIBIT "1"
page 8 of 12
Docusign Envelope ID: B8FE493F-B542-4B41-B27F-6B648FB3ABC5

Rate ($)
SCS Field Services
Fee Schedule for Equipment and Analysis
July 1, 2024 through June 30, 2025

Trackstar 500 Fusion Machine
 Daily Rate ..................................................................................................................... 765/day  Weekly Rate ........................................................................................................... 3,820/week  Monthly Rate ........................................................................................................ 8,477/month Sidewinder Fusion Machine
 Daily Rate ..................................................................................................................... 191/day  Weekly Rate ............................................................................................................... 955/week  Monthly Rate ........................................................................................................ 2,870/month Electrofusion Processor Machine:
 Daily Rate ..................................................................................................................... 225/day  Weekly Rate ........................................................................................................... 1,115/week  Monthly Rate ........................................................................................................ 3,350/month Leister Extrusion Welding Gun ....................................................................................................... 192/day Air Compressor ................................................................................................................................... 74/day Arc Welder .......................................................................................................................................... 90/day Generator (3,500-Watt) ..................................................................................................................... 74/day Generator (5,000-Watt) ..................................................................................................................... 90/day Generator (6,000-Watt) ..................................................................................................................... 97/day Generator (8,000-Watt) .................................................................................................................. 102/day Isolation Pinch-off Tool (1”-4”):
 Daily Rate ........................................................................................................................ 48/day  Weekly Rate ............................................................................................................... 244/week  Monthly Rate ........................................................................................................... 732/month Isolation Pinch-off Tool (2”-8”):
 Daily Rate ........................................................................................................................ 74/day  Weekly Rate ............................................................................................................... 370/week  Monthly Rate ........................................................................................................ 1,106/month Isolation Pinch-off Tool (8”-12”):
 Daily Rate ..................................................................................................................... 122/day  Weekly Rate ............................................................................................................... 608/week  Monthly Rate ........................................................................................................ 1,820/month EXHIBIT "1"
page 9 of 12
Docusign Envelope ID: B8FE493F-B542-4B41-B27F-6B648FB3ABC5

Rate ($)
SCS Field Services
Fee Schedule for Equipment and Analysis
July 1, 2024 through June 30, 2025

4-Wheeler with 44” Mow Deck:
 Daily Rate ..................................................................................................................... 122/day  Weekly Rate ............................................................................................................... 608/week  Monthly Rate ........................................................................................................ 1,820/month Riding Mower:
 Daily Rate ..................................................................................................................... 214/day  Weekly Rate ........................................................................................................... 1,066/week  Monthly Rate ........................................................................................................ 3,198/month Chain Saw:
 Daily Rate ........................................................................................................................ 15/day  Weekly Rate ................................................................................................................. 70/week  Monthly Rate ........................................................................................................... 204/month Horiba Water Quality Meter:
 Daily Rate ........................................................................................................................ 60/day  Weekly Rate ............................................................................................................... 298/week  Monthly Rate ........................................................................................................... 920/month Hydrogen Sulfide Meter:
 Daily Rate ..................................................................................................................... 231/day  Weekly Rate ........................................................................................................... 1,154/week  Monthly Rate ........................................................................................................ 3,470/month Infrared Thermometer:
 Daily Rate ........................................................................................................................ 15/day  Weekly Rate ................................................................................................................. 70/week  Monthly Rate ........................................................................................................... 204/month Micropurge Flow Cell (Groundwater):
 Daily Rate ..................................................................................................................... 122/day  Weekly Rate ............................................................................................................... 608/week  Monthly Rate ........................................................................................................ 1,820/month Oiless Compressor and Control Box (Groundwater):
 Daily Rate ........................................................................................................................ 90/day  Weekly Rate ............................................................................................................... 454/week  Monthly Rate ........................................................................................................ 1,361/month EXHIBIT "1"
page 10 of 12
Docusign Envelope ID: B8FE493F-B542-4B41-B27F-6B648FB3ABC5

Rate ($)
SCS Field Services
Fee Schedule for Equipment and Analysis
July 1, 2024 through June 30, 2025

Earth/Resistance Tester:
 Daily Rate ..................................................................................................................... 122/day  Weekly Rate ............................................................................................................... 608/week  Monthly Rate ........................................................................................................ 1,820/month Pitot Tube and Gauges:
 Daily Rate ........................................................................................................................ 15/day  Weekly Rate ................................................................................................................. 48/week  Monthly Rate ........................................................................................................... 204/month Pressure Washer:
 Daily Rate ........................................................................................................................ 60/day  Weekly Rate ............................................................................................................... 298/week  Monthly Rate ........................................................................................................... 918/month Turbidity Meter/Conductivity Meter:
 Daily Rate ........................................................................................................................ 32/day  Weekly Rate ............................................................................................................... 154/week  Monthly Rate ........................................................................................................... 460/month Vacuum Air Pump:
 Daily Rate ..................................................................................................................... 122/day  Weekly Rate ............................................................................................................... 608/week  Monthly Rate ........................................................................................................ 1,820/month Downhole Video Camera System ................................................................................................... 245/day Weed Trimmer:
 Daily Rate ........................................................................................................................ 32/day  Weekly Rate ............................................................................................................... 154/week  Monthly Rate ........................................................................................................... 460/month Safety Equipment:
 Tyvek Suit (each) ......................................................................................................... 20/each  Polyethylene suit (each) .............................................................................................. 25/each  PVC Gloves (per pair) ................................................................................................... 20/each  Rubber booties (per pair) ............................................................................................ 20/each  Organic Vapor Cartridges (per pair) ............................................................................ 25/each  Organic Vapor/Acid Cartridges (per pair) ................................................................... 32/each  Cartridges pre-filters (per pair) ................................................................................... 20/each EXHIBIT "1"
page 11 of 12
Docusign Envelope ID: B8FE493F-B542-4B41-B27F-6B648FB3ABC5

Rate ($)
SCS Field Services
Fee Schedule for Equipment and Analysis
July 1, 2024 through June 30, 2025

Safety Equipment Continued:
 Half face respirator (each) ............................................................................................. 25/day  Full face respirator (each) ............................................................................................. 32/day  Ventilator/manhole blowers .......................................................................................... 32/day  Parachute harness ......................................................................................................... 15/day  Tripod:
- Daily Rate ................................................................................................................. 90/day - Weekly Rate......................................................................................................... 445/week - Monthly Rate ................................................................................................. 1,360/month  SCBA ............................................................................................................................. 245/day General Terms

1. Rates are in effect until June 30, 2025. Any work performed after that date will be subject to a new Schedule of Fees.

2. Equipment usage rates are exclusive of freight charges to and from the project site. Freight is an additional expense chargeable to the client.

3. Shipping, supplies, equipment rental, materials, vehicle mileage, and other non-labor equipment costs or direct costs are billed at cost plus 15 percent.

4. Equipment rented will be charged portal-to-portal from SCS Field Services offices. Renter is responsible for return charges.

5. The cost of equipment owned by SCS Field Services will not be subject to administrative markup.

6. Availability of equipment owned by SCS Field Services may vary.

EXHIBIT "1"
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Docusign Envelope ID: B8FE493F-B542-4B41-B27F-6B648FB3ABC5

8/22/2024 1:57:57 PM
C:\Program Files\eSCRIBE\TEMP\13575376417\13575376417,,,Award Staff Augmentation Carlson CM.docx Agenda Report
MEETING DATE: Tuesday, August 27, 2024
TO: City Council
FROM: PUBLIC WORKS & UTILITIES DIRECTOR LINDBERG
ASST. PUBLIC WORKS & UTILITIES DIRECTOR GREEN
SUBJECT: AWARD CONTRACT FOR ENGINEERING STAFF
AUGMENTATION SERVICES TO CARLSON CM, INC., A

CALIFORNIA CORPORATION, IN AN AMOUNT NOT TO EXCEED
$756,907 FOR THE WWTF ELECTRICAL SYSTEM HAZARD
MITIGATION IMPROVEMENTS PROJECT, NO. WW-22-14797
RECOMMENDED ACTION:

Adopt a resolution to award a contract to Carlson CM, Inc., a California corporation, to provide engineering staff augmentation service for the Wastewater Treatment Facility (WWTF) Electrical System Hazard Mitigation Improvements Project, No. WW-22-14797, in an amount not to exceed $756,907; and authorize the Interim City Manager to execute said contract.

BACKGROUND:

The WWTF Electrical System Hazard Mitigation Improvements Project is ready to begin construction and will require project management through construction, which will require engineering staff augmentation support through a consultant.

DISCUSSION:

In January 2024, staff issued a Request for Qualification Statements from consulting engineering firms for periodic and on-call staff augmentation services. Submissions were due February 7, 2024, at which time five were received, and Carlson CM, Inc. was one of the two firms listed on the on-call list.

Staff requested a proposal from Carlson CM, Inc. to provide engineering staff augmentation services on the WWTF Electrical System Hazard Mitigation Improvements Project before and through construction. This will include providing city project and construction management services over the project's approximately three-year construction period. Carlson CM, Inc. is registered as a certified small business with the California Department of General Services. The WWTF Electrical System Hazard Mitigation Improvements Project is funded in part by a federal grant which encourages grant recipients to include project participation from small and disadvantaged firms.

8/22/2024 1:57:57 PM
C:\Program Files\eSCRIBE\TEMP\13575376417\13575376417,,,Award Staff Augmentation Carlson CM.docx Carlson CM, Inc. was selected as the most qualified from the on-call list to provide engineering staff augmentation project and construction management services on the project. Staff therefore recommends that City Council award a professional engineering services contract to Carlson CM, Inc. in an amount not to exceed $756,907 for the WWTF Electrical System Hazard Mitigation Improvements Project, No. WW-22-14797.

STRATEGIC PLAN:

This contract award is consistent with the following strategic plan goals:
2-Infrastructure & Environment
FINANCIAL IMPACT:

There are sufficient budget funds available in the Sewer Enterprise Fund budget number 911-7855-14797.

ALTERNATIVE ACTION:

No reasonable alternatives are known at this time.

ATTACHMENTS AND/OR REFERENCES (If any):

Reso No. (CM)
Meeting Date: 082724 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE AWARDING PROFESSIONAL ENGINEERING
SERVICES CONTRACT CARLSON CM, INC., A CORPORATION, FOR

ENGINEERING STAFF AUGMENTATION SERVICES FOR THE WWTF

ELECTRICAL SYSTEM HAZARD MITIGATION IMPROVEMENTS
PROJECT, NO. WW-22-14797, IN AN AMOUNT NOT TO EXCEED
$756,907, AND AUTHORIZING AND DIRECTING THE INTERIM CITY

MANAGER TO EXECUTE SAME
WHEREAS, § 3-5.500 of the Municipal code provides that an RFP or RFQ process is found to be an effective and efficient way to procure professional services and procurement of professional services shall be based on proposals solicited from capable professionals and be evaluated based on a combination of factors including education, training, experience and demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required; and WHEREAS, § 3-5.540 of the Municipal Code provides that contracts for professional services estimated to cost more than One Hundred Thousand and no/100ths ($100,000.00) Dollars must be awarded by the Council, and that the selection will be based on demonstrated competence and on the education, training and experience and professional qualifications necessary for the satisfactory performance of the services required, that cost will not be the only basis for selection, use a qualifications-based selection process as described in subdivision (a) of § 45271 of the California Government Code and negotiated as described in § 4528; and WHEREAS, a Request for Qualifications (RFQ) was issued on January 10, 2024, asking for qualified consultants to assist the City with on-call engineering staff augmentation services; and

1 All references to section numbers will be to the California Government Code

Reso No. (CM)
Meeting Date: 082724 2
WHEREAS, the deadline for submittal of Request for Statement of Qualifications was February 7, 2024; and
WHEREAS, a total of five firms submitted a proposal; these proposals were reviewed by City staff; and
WHEREAS, the Interim City Manager has recommended that the proposal from Carlson CM, Inc., be accepted as the best response.

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

1. This action is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15378(b)(5), in that adopting a Resolution awarding contract to Cummings Management Group, Inc. for oncall labor compliance 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 and if a “project,” is exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.

2. The Council awards a contract to Carlson CM, Inc., a corporation, for engineering staff augmentation services on the WWTF Electrical System Hazard Mitigation Improvements Project, No. WW-22-14797, in an amount not to exceed $756,907.

3. That the Contract for Consultant Services between the City of Watsonville and Carlson CM, Inc., a corporation, a copy of which is attached hereto and incorporated herein by this reference, is hereby approved.

Reso No. (CM)
Meeting Date: 082724 3

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

5. The Interim City Manager is hereby authorized and directed to execute said contract for and on behalf of the City of Watsonville with minor revisions that may be approved by the Interim City Manager and the City Attorney. **************************************

CONTRACT FOR CONSULTANT SERVICES BETWEEN

THE CITY OF WATSONVILLE AND CARLSON CONSTRUCTION
MANAGEMENT, INC.

THIS CONTRACT, is made and entered into this , by
and between the City of Watsonville, a municipal corporation, hereinafter called "City," and Carlson Construction Management, Inc., hereinafter called "Consultant."

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

THE PARTIES HEREBY AGREE AS FOLLOWS:

SECTION 1. SCOPE OF SERVICES. Consultant shall perform those services described in detail in Exhibit “A,” entitled “SCOPE OF SERVICES” which exhibit is attached hereto and incorporated herein.

SECTION 2. TERM OF CONTRACT. The term of this Contract shall be from the date of execution of this contract to December 31, 2027, inclusive.

SECTION 3. SCHEDULE OF PERFORMANCE. The services of Consultant are to be completed according to the schedule set out in Exhibit “B,” entitled “SCHEDULE OF PERFORMANCE,” which is attached hereto and incorporated herein. Consultant will diligently proceed with the agreed Scope of Services and will provide such services in a timely manner in accordance with the “SCHEDULE OF PERFORMANCE.” SECTION 4. COMPENSATION. The compensation to be paid to Consultant including both payment for professional services and reimbursable expenses as well as the rate and schedule of payment are set out in Exhibit “C” entitled “COMPENSATION,” which is attached hereto and incorporated herein. This amount shall not exceed $756,907.

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

SECTION 6. INDEPENDENT CONSULTANT. It is understood and agreed that Consultant, in the performance of the work and services agreed to be performed by Consultant, shall act as and be an independent Consultant and not an agent or employee of City, and as an independent Consultant, shall obtain no rights to retirement Docusign Envelope ID: 67797775-60F4-4600-A4A1-B6C26398A712

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

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

SECTION 8. INDEMNIFICATION.

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

SECTION 9. INSURANCE.

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

B. Auto and Commercial General Liability Insurance. Consultant shall also maintain in full force and effect for the term of this Contract, automobile insurance and commercial general liability insurance with an insurance carrier satisfactory to City, which insurance shall include protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from any actual occurrence arising out of the performance of this Contract. The amounts of insurance shall not be less than the following:
(1) Commercial general liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000.00 per occurrence. If such insurance contains a general aggregate limit, such limit shall apply separately to each project Consultant performs for City. Such insurance shall (a) name City, its appointed and elected officials, and its employees as insureds; and (b) be primary with respect to insurance or self-insurance programs maintained by City and (c) contain standard separation of insured's provisions.

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(2) Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000.00 per occurrence. Such insurance shall include coverage for owned, hired and non-owned automobiles.

C. Workers’ Compensation Certification. Consultant certifies that, in the performance of this Contract, Consultant shall not employ any person in any manner.

D. Proof of Insurance to City before Notice to Proceed to Work. Consultant shall satisfactorily provide a certificate and endorsements of insurance to the City Clerk before Notice to Proceed to Work of this Contract will be issued. Consultant shall not perform any work under this Contract until Consultant has obtained the required insurance and until the required certificate has been submitted to the City and approved. If Consultant fails or refuses to produce or maintain the insurance required by these provisions, or fails or refuses to furnish City required proof that insurance has been procured and is in force and paid for, City shall have the right at City's election to forthwith terminate this Contract immediately without any financial or contractual obligation to the City. As a result of such termination, the City reserves the right to employ another consultant to complete the project.

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

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

SECTION 11. TERMINATION.

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

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

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

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

SECTION 12. COMPLIANCE WITH LAWS. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local governments.

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

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

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

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

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

SECTION 17. COVENANT AGAINST CONTINGENT FEES. The Consultant covenants that Consultant has not employed or retained any company or person to solicit or secure the Contract, and that Consultant has not paid or agreed to pay any company or person, any fees, commissions, percentage, brokerage fee, gift, or any other consideration contingent on or resulting from the award or making of this Contract.

For breach or violation of this covenant, the City shall have the right to annul this Contract without liability, or in its discretion, to deduct from the contract price or consideration or otherwise recover, the full amount of such fee, commission, percentage fee, gift, or contingency.

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

SECTION 19. CONFLICT OF INTEREST.

A. A Consultant shall avoid all conflict of interest or appearance of conflict of interest in performance of this Contract. Consultant shall file a FPPC Form 700 disclosure statement, which form shall be filed the City Clerk within thirty (30) days from the effective date of this Contract as applicable.

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

Docusign Envelope ID: 67797775-60F4-4600-A4A1-B6C26398A712

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

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

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

CONSULTANT
Carlson Construction Management, Inc.
17500 Depot Street, Suite 200
Morgan Hill, CA 95037
SECTION 22. EXHIBITS:

Exhibit A: Scope of Services
Exhibit B: Schedule of Performance
Exhibit C: Compensation
///
///
///
Docusign Envelope ID: 67797775-60F4-4600-A4A1-B6C26398A712

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

CITY

CITY OF WATSONVILLE
BY ______________________________
Tamara Vides, Interim City Manager
ATTEST:

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

BY ______________________________
Samantha W. Zutler, City Attorney

CONSULTANT

CARLSON CONSTRUCTION
MANAGEMENT, INC.

BY_________________________________
Sam Carlson, PE, Construction Manager
Docusign Envelope ID: 67797775-60F4-4600-A4A1-B6C26398A712

EXHIBIT "A"

SCOPE OF SERVICES
The scope of services is as follows:

As described in the attached letter, dated May 9, 2024, from Sam Carlson to Danielle Green concerning the proposal to perform Construction Management Services for the WWTF Electrical System Hazard Mitigation.

See attachment labeled EXHIBIT “A”.

Docusign Envelope ID: 67797775-60F4-4600-A4A1-B6C26398A712

EXHIBIT "B"

SCHEDULE OF PERFORMANCE
Services shall commence immediately upon execution of this Contract. All services performed under the provisions of this Contract shall be completed in accordance with the following schedule:

Services to be provided until December 31, 2027.

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EXHIBIT "C"

COMPENSATION
a. Total Compensation. The total obligation of City under this Contract shall not exceed Seven Hundred Fifty Six Thousand Nine Hundred Sevent dollars ($756,907). b. Basis for Payment. Payment(s) to Consultant for services performed under this contract shall be made as follows and shall include payment for reimbursable expenses:
c. Payment Request. Consultant shall submit a request for payment for services on a monthly basis by letter to Director, or said Director's designated representative. Such request for payment shall cover the preceding monthly period during the term hereof, shall note the City's purchase order number for this contract, shall contain a detailed listing of the total number of items or tasks or hours for which payment is requested, the individual dates on which such services were rendered, and invoices for reimbursable expenses, if any. Upon receipt in the Office of Director of said payment request, Director shall cause payment to be initiated to Consultant for appropriate compensation.

Docusign Envelope ID: 67797775-60F4-4600-A4A1-B6C26398A712

5/9/2024
City of Watsonville, CA
ATTN: Danielle Green
500 Clearwater Lane,
Watsonville, CA 95076
RE: Construction Management Services - WWTF Electrical System Hazard Mitigation Dear Danielle Green,
Thank you for the opportunity to submit the enclosed proposal for your project. I appreciate your interest in Carlson CM, Inc. and look forward to working with you.

The proposal outlines services discussed to assist the City of Watsonville with Construction Management Services.

Please do not hesitate to call or e-mail me if you have any questions. Upon approval and acceptance we will prepare a final CM fee agreement for the enclosed scope of work.

Sincerely,
Sam Carlson, PE
Construction Manager
Carlson CM, Inc.
17500 Depot Street, Suite 200
Morgan Hill, CA 95037
EXHIBIT "A"
page 1 of 6
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ENCLOSED IN THIS PROPOSAL
Proposal Scope of Work
Fees
EXHIBIT "A"
page 2 of 6
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1. SCOPE OF WORK AND SERVICES
Preconstruction Services, Construction Management Services, & Post Construction Services Construction Management services to include the following:
● Bidding and bid review
● GC coordination with project management system (Procore) ● Coordinate with the subcontracted onsite observation. ● Baseline and schedule update reviews
● RFI and Submittal review, coordination and status for Architect/Engineer approval ● COR review and analysis
● Conduct onsite or virtual weekly construction progress meeting to review:
○ 3 week look ahead
○ COR review & status
○ RFI & Submittal status
● Provide once a week site visits.
● Facilitate Owner, IOR, GC or Architectural driven changes and clarifications to scope of work. ● Coordinate Punch List with GC and Architect/Engineer

2. SERVICES NOT INCLUDED
A. Submittal and RFI approvals
B. Claims Analysis

3. CONSTRUCTION MANAGEMENT FEES
Construction Management Fees Amount
Construction Management Fee (T&M) $ 756,907.00

4. TIMELINE
A. Preconstruction activities include work from April-May 2024 (2 months) B. Construction Management include work estimated to start June 2024 to February 2027 (34 months) C. Post Construction Management includes work March-April 2027 (2 month)

5. CHANGES OR ADDITIONS TO SCOPE OF WORK
In the event you desire services of our firm in addition to those indicated in the scope of work above, and in the event you order changes to work already completed by us and approved by you, such services shall be considered additional work. All such additional work shall be billed to you at our hourly rates plus the EXHIBIT "A"
page 3 of 6
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cost of reproduction (see Schedule of Fees), or presented in an additional contract for your approval prior to commencement. No such additional work shall be undertaken by our firm without prior authorization from you.

6. REIMBURSABLE EXPENSES
a. Reimbursable expenses are in addition to the above fees. These include, but are not limited to, the following: plotting, printing and copying, processing, travel, long distance communications, postage, consultant services and reimbursable expenses, City fees. b. All such reimbursable expenses shall be invoiced in accordance with the attached “Service Fees”. c. All Municipal fees are the sole responsibility of the District. d. Reimbursables are additional and billed separately (approximately 5% of the fee amount).

EXHIBIT "A"
page 4 of 6
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Standard Service Fees

HOURLY FEES FOR SERVICE
Construction Manager $185.00
Assistant Construction Manager $150.00
Clerical $85.00

MISCELLANEOUS COSTS
Blue Prints, Reproductions and Materials Costs plus 15% Consultant Services- CM Coordination Fee Fees plus 20%
Mileage 65.5 cents per mile
Procore Annual Fee
Effective through December 31, 2024
Subject to Revision Annually
EXHIBIT "A"
page 5 of 6
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Carlson CM: WWTP Power Reliability Fee Schedule
9/1/2024 1000 5/29/2027
Sam Carlson Inspector
Estimated Month Rate 185 Rate 170
Estimated Activity
1 September 2024 10 ($ 1,850.00) 0 ($ -  )
2 October 2024 10 ($ 1,850.00) 0 ($ -  )
3 November 2024 10 ($ 1,850.00) 0 ($ -  ) Submittals/Project Docs 4 December 2024 60 ($ 11,100.00) 40 ($ 6,800.00) Submittals/Project Docs 5 January 2025 60 ($ 11,100.00) 60 ($ 10,200.00) Mobilization/Grading/Site work 6 February 2025 60 ($ 11,100.00) 60 ($ 10,200.00) Site Work/Piles 7 March 2025 60 ($ 11,100.00) 70 ($ 11,900.00) Building/Concrete 8 April 2025 60 ($ 11,100.00) 70 ($ 11,900.00) Building/Concrete 9 May 2025 60 ($ 11,100.00) 70 ($ 11,900.00) Building/Concrete 10 June 2025 60 ($ 11,100.00) 70 ($ 11,900.00) Building/Concrete 11 July 2025 60 ($ 11,100.00) 70 ($ 11,900.00) Building/Concrete 12 August 2025 60 ($ 11,100.00) 70 ($ 11,900.00) Building/Concrete 13 September 2025 60 ($ 11,100.00) 70 ($ 11,900.00) Building/Concrete 14 October 2025 60 ($ 11,100.00) 70 ($ 11,900.00) Site Work 15 November 2025 60 ($ 11,100.00) 70 ($ 11,900.00) Site Work 16 December 2025 60 ($ 11,100.00) 70 ($ 11,900.00) Site Work 17 January 2026 40 ($ 7,400.00) 40 ($ 6,800.00) Site Work 18 February 2026 40 ($ 7,400.00) 40 ($ 6,800.00) Site Work 19 March 2026 40 ($ 7,400.00) 40 ($ 6,800.00) Site Work 20 April 2026 40 ($ 7,400.00) 40 ($ 6,800.00) Electrical Prep 21 May 2026 60 ($ 11,100.00) 70 ($ 11,900.00) Electrical Prep 22 June 2026 60 ($ 11,100.00) 70 ($ 11,900.00) Electrical Prep 23 July 2026 60 ($ 11,100.00) 70 ($ 11,900.00) Electrical Prep 24 August 2026 60 ($ 11,100.00) 70 ($ 11,900.00) Gear Install 25 September 2026 60 ($ 11,100.00) 70 ($ 11,900.00) Gear Install 26 October 2026 60 ($ 11,100.00) 70 ($ 11,900.00) Gear Install 27 November 2026 60 ($ 11,100.00) 70 ($ 11,900.00) Gear Install 28 December 2026 60 ($ 11,100.00) 70 ($ 11,900.00) Gear Install 29 January 2027 60 ($ 11,100.00) 70 ($ 11,900.00) Gear Install 30 February 2027 60 ($ 11,100.00) 70 ($ 11,900.00) Cutover 31 March 2027 70 ($ 12,950.00) 70 ($ 11,900.00) Cutover 32 April 2027 70 ($ 12,950.00) 70 ($ 11,900.00) Cutover 33 May 2027 70 ($ 12,950.00) 70 ($ 11,900.00) Punch
34 June 2027 40 ($ 7,400.00) 70 ($ 11,900.00) Punch
35 July 2027 40 ($ 7,400.00) 70 ($ 11,900.00) Punch
36 August 2027 40 ($ 7,400.00) 40 ($ 6,800.00) Punch
2820 ($ 398,221.00) 2000 ($ 358,870.00)
Projected Bid $23,000,000 % of Est Bid
CM ($ 398,221.00) 1.73%
Observation ($ 358,870.00) 1.56%
Total Fee ($ 757,091.00) 3.29%
Reimbursible Expenses (5%) ($ 37,854.55)
Milage Procore Printing
EXHIBIT "A"
page 6 of 6
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ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED?

INSR ADDL SUBR

LTR INSD WVD
PRODUCER CONTACT NAME: PHONE FAX
(A/C, No, Ext): (A/C, No): E-MAIL ADDRESS:

INSURER A :

INSURED INSURER B :

INSURER C :

INSURER D :

INSURER E :

INSURER F :

POLICY NUMBER POLICY EFF POLICY EXP TYPE OF INSURANCE (MM/DD/YYYY) (MM/DD/YYYY) LIMITS

AUTOMOBILE LIABILITY

UMBRELLA LIAB

EXCESS LIAB WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

AUTHORIZED REPRESENTATIVE
EACH OCCURRENCE $ DAMAGE TO RENTED CLAIMS-MADE OCCUR PREMISES (Ea occurrence) $ MED EXP (Any one person) $ PERSONAL & ADV INJURY $ GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ PRO- POLICY JECT LOC PRODUCTS - COMP/OP AGG OTHER: $ COMBINED SINGLE LIMIT
(Ea accident) $ ANY AUTO BODILY INJURY (Per person) $ OWNED SCHEDULED AUTOS ONLY AUTOS BODILY INJURY (Per accident) $ HIRED NON-OWNED PROPERTY DAMAGE AUTOS ONLY AUTOS ONLY (Per accident) $
$ OCCUR EACH OCCURRENCE CLAIMS-MADE AGGREGATE $ DED RETENTION $ PER OTH- STATUTE ER E.L. EACH ACCIDENT E.L. DISEASE - EA EMPLOYEE $
If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT INSURER(S) AFFORDING COVERAGE NAIC #

COMMERCIAL GENERAL LIABILITY
Y / N
N / A
(Mandatory in NH)

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

CERTIFICATE HOLDER CANCELLATION
ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved.

CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)
$
$
$
$
$
The ACORD name and logo are registered marks of ACORD
8/12/2024
License # 0E67768
(925) 918-4540
13056
Carlson CM, Inc
17500 Depot St
Morgan Hill, CA 95037
A 1,000,000
PSB0010070 3/31/2024 3/31/2025 1,000,000
10,000
1,000,000
2,000,000
2,000,000
A 1,000,000
PSB0010070 3/31/2024 3/31/2025
A Professional Liab. RDP0054047 3/31/2024 Per Claim 1,000,000 A Professional Liab. RDP0054047 3/31/2024 3/31/2025 Aggregate 2,000,000 All Operations of the Named Insured, including the aforementioned project, if any.

General Liability: Please see blanket Additional Insured endorsement attached; such coverage is Primary and Non-Contributory with Waiver of Subrogation included, as required per written contract.

GENERAL LIABILITY INCLUDE THE FOLLOWING PERSON(S) OR ORGANIZATION(S): City of Watsonville City of Watsonville
275 Main Street
Watsonville, CA 95076
CARLCMI-01 SEITAS
IOA Insurance Services
3875 Hopyard Road
Suite 200
Pleasanton, CA 94588
Gloria Page
[email protected]
RLI Insurance Company
3/31/2025
X
X
X
X X
Docusign Envelope ID: 67797775-60F4-4600-A4A1-B6C26398A712

Policy Number: RLI Insurance Company
Named Insured:

PPB 304 02 12 Page 1 of 1
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

RLIPack® FOR PROFESSIONALS

BLANKET ADDITIONAL INSURED ENDORSEMENT
This endorsement modifies insurance provided under the following:

BUSINESSOWNERS COVERAGE FORM - SECTION II – LIABILITY

1. C. WHO IS AN INSURED is amended to include as
an additional insured any person or organization that
you agree in a contract or agreement requiring
insurance to include as an additional insured on this
policy, but only with respect to liability for "bodily
injury", "property damage" or "personal and
advertising injury" caused in whole or in part by you
or those acting on your behalf:
a. In the performance of your ongoing operations;
b. In connection with premises owned by or rented
to you; or
c. In connection with “your work” and included
within the “product-completed operations
hazard”.

2. The insurance provided to the additional insured by
this endorsement is limited as follows:
a. This insurance does not apply on any basis to
any person or organization for which coverage
as an additional insured specifically is added by
another endorsement to this policy.
b. This insurance does not apply to the rendering
of or failure to render any "professional
services".
c. This endorsement does not increase any of the
limits of insurance stated in D. Liability And
Medical Expenses Limits of Insurance.

3. The following is added to SECTION III H.2. Other
Insurance – COMMON POLICY CONDITIONS
(BUT APPLICABLE ONLY TO SECTION II –

LIABILITY)
However, if you specifically agree in a contract or
agreement that the insurance provided to an
additional insured under this policy must apply on a
primary basis, or a primary and non-contributory
basis, this insurance is primary to other insurance
that is available to such additional insured which
covers such additional insured as a named insured,
and we will not share with that other insurance,
provided that:
a. The "bodily injury" or "property damage" for
which coverage is sought occurs after you have
entered into that contract or agreement; or
b. The "personal and advertising injury" for which
coverage is sought arises out of an offense
committed after you have entered into that
contract or agreement.

4. The following is added to SECTION III K. 2.

Transfer of Rights of Recovery Against Others to
Us – COMMON POLICY CONDITIONS (BUT
APPLICABLE TO ONLY TO SECTION II –

LIABILITY)
We waive any rights of recovery we may have
against any person or organization because of
payments we make for "bodily injury", "property
damage" or "personal and advertising injury" arising
out of "your work" performed by you, or on your
behalf, under a contract or agreement with that
person or organization. We waive these rights only
where you have agreed to do so as part of a
contract or agreement with such person or
organization entered into by you before the "bodily
injury" or "property damage" occurs, or the "personal
and advertising injury" offense is committed.

ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED.

PSB0010070
Carlson CM, Inc.

Docusign Envelope ID: 67797775-60F4-4600-A4A1-B6C26398A712

8/22/2024 2:24:54 PM
C:\Program Files\eSCRIBE\TEMP\14245079675\14245079675,,,Report - Award Contract Watsonville Wetlands Watch .docx Agenda Report
MEETING DATE: Tuesday, August 27, 2024
TO: City Council
FROM: PUBLIC WORKS & UTILITIES DIRECTOR LINDBERG

ENVIRONMENTAL SUSTAINABILITY MANAGER MCCLOUD
SUBJECT: AWARD OF CONTRACT TO WATSONVILLE WETLANDS WATCH IN AN AMOUNT NOT TO EXCEED $341,920.00 FOR THE

IMPLEMENTATION OF THE SANTA CRUZ INTEGRATED
REGIONAL WATER MANAGEMENT GRANT PROPOSITON 1
ROUND 2 FOR THE ATKINSON LANE INTEGRATED FLOOD

MANAGEMENT AND WATERSHED
RECOMMENDED ACTION:

Resolution of the City Council to authorize the City Manager Pro Tempore to execute a contract with Watsonville Wetlands Watch in an amount not to exceed $341,920.00 for the Santa Cruz Integrated Regional Water Management Proposition 1 Round Implementation Grant for the Atkinson Lane Integrated Flood Management and Watershed Restoration Project, which funds are available in 0260 Special Grants Account.

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 water resource management approach. 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 partnered 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

8/22/2024 2:24:54 PM
C:\Program Files\eSCRIBE\TEMP\14245079675\14245079675,,,Report - Award Contract Watsonville Wetlands Watch .docx Management and Watershed Restoration Project for $545,000. This project will improve habitat and minimize localized flooding in the City. Watsonville Wetlands Watch is a local non-profit experienced in wetland stewardship, habitat restoration, and public outreach.

DISCUSSION:

The Atkinson Lane Integrated Flood Management and Watershed Restoration Project is a flood risk reduction and watershed habitat restoration project located on the eastern boundary of the City of Watsonville. Project activity includes designing and implementing best management practices to reduce sediment inputs into the Atkinson wetland, thereby implementing integrated flood control measures and providing flood risk reduction benefits for the surrounding and downstream residential and commercial areas within the city, a disadvantaged community. Concurrent with this work, the project will restore and enhance native habitat within the approximately 8-acre Atkinson wetland complex and engage and educate local community volunteers and school-aged groups throughout the project.

Watsonville Wetlands Watch (WWW) has been serving the City of Watsonville for more than ten years. They are the only known professionals dedicated to the protection, restoration, and education of the Watsonville wetlands that benefit wildlife, water quality, natural habitats, and local resources.

The project is subject to CEQA, which will occur as part of the project.

STRATEGIC PLAN:

The implementation of the Project supports the following strategic goals:
2-Infrastructure & Environment
6-Community Engagement & Well-being
FINANCIAL IMPACT:

The Proposition 1 Round Implementation Grant for the Atkinson Lane Integrated Flood Management and Watershed Restoration Project has no match requirement and funds are available in the 0260 Special Grants Account. A Watsonville Wetlands Watch contract in the amount of $341,920.00 will be appropriated from the 0260 Special Grants account.

ALTERNATIVE ACTION:

1. The City could not award the contract to Watsonville Wetlands Watch.

2. The City could return funds to the Santa Cruz Integrated Regional Water Management Group.

ATTACHMENTS AND/OR REFERENCES (If any):

Attachment 1. Department of Water Resource 4600015400 Executed Agreement.

Attachment 2. Proposition 1, Round 2 Santa Cruz Integrated Regional Water Management Executed Local Project Sponsor Agreement

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 1

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 1

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 1

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 1

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 1

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 1

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 1

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 1

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 1

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
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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 1

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
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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
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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
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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
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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
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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 1

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 1

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
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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.

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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 1

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 1

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 1

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 1

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 1

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 1

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 1

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 1

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 1

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.

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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 1

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 1

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 1

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 1

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 1

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 1

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 1

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.

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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.

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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.

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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 1

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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.

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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 1

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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 1

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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.

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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.

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EXHIBIT E

AUTHORIZING RESOLUTION
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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
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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
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• 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.

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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/.

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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.

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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.

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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 1

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 1

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 1

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 1

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 1

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 1

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.

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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.

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Grant Agreement No. 4600015400

b. For listings, also include marketing time from list date to effective date of the appraisal, original list price, changes in list price, broker feedback, if available. c. For leases, include significant information such as lessor/lessee, lease date and term, type of lease, rent and escalation, expenses, size of space leased, tenant improvement allowance, concessions, use restrictions, options, and confirming source. When comparing improved sales to a vacant land subject, the contributory value of the improvements shall be segregated from the land value.

27. For appraisals of easements, a before and after analysis of the burden of the easement on the fee, with attention to how the easement affects highest and best use in the after condition. An Easement Valuation Matrix or generalized easement valuation references may be used ONLY as a reference for a secondary basis of value.

28. For partial taking and easement appraisals, valuation of the remainder in the after condition and analysis and identification of any change in highest and best use or other characteristics in the after condition, to establish severance damages to the remainder in the after condition, and a discussion of special and general benefits, and cost to cure damages or construction contract work.

29. There are occasions where properties involve water rights, minerals, or salable timber that require separate valuations. If an appraisal assignment includes water rights, minerals, or merchantable timber that requires separate valuation, the valuation of the water rights, minerals, or merchantable timber shall be completed by a credentialed subject matter specialist.

30. For partial taking and easement appraisals, presentation of the valuation in California partial taking acquisition required format.

31. Implied dedication statement.

32. Reconciliation and final value estimate. Include analysis and comparison of the comparable sales to the subject, and explain and support conclusions reached.

33. Discussion of any departures taken in the development of the appraisal.

34. Signed Certification consistent with the language found in Uniform Standards of Professional Appraisal Practice.

35. If applicable, in addition to the above, appraisals of telecommunication sites shall also provide:
a. A discussion of market conditions and trends including identification of the relevant market, 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. b. An analysis of other leases comparable to subject property. Factors to be discussed in the analysis include the latitude, longitude, type of tower, tower height, number of rack spaces, number of racks occupied, placement of racks, power source and adequacy, back-up power, vault and site improvements description and location on site, other utilities; access, and road maintenance costs.

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Grant Agreement No. 4600015400

EXHIBIT K

INFORMATION NEEDED FOR ESCROW PROCESSING AND CLOSURE
For implementation projects that include Land Acquisition Only:

The Grantee shall provide the following documents to the State Project Representative during the escrow process. Property acquisition escrow documents shall be submitted within the term of this Grant Agreement and after a qualified appraisal has been approved. • Name and Address of Title Company Handling the Escrow • Escrow Number
• Name of Escrow Officer
• Escrow Officer’s Phone Number
• Dollar Amount Needed to Close Escrow
• Legal Description of Property Being Acquired
• Assessor’s Parcel Number(s) of Property Being Acquired • Copy of Title Insurance Report
• Entity Taking Title as Named Insured on Title Insurance Policy • Copy of Escrow Instructions in Draft Form Prior to Recording for Review Purposes • Copy of Final Escrow Instructions
• Verification that all Encumbrances (i.e., Liens, Back Taxes, and Similar Obligations) have been Cleared Prior to Recording the Deed to Transfer Title
• Copy of Deed for Review Purposes Prior to Recording
• Copy of Deed as Recorded in County Recorder’s Office
• Copy of Escrow Closure Notice
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Grant Agreement No. 4600015400

EXHIBIT L

PROJECT MONITORING PLAN GUIDANCE
Introduction
For each project contained in Exhibit A, please include a brief description of the project (maximum ~150 words) including project location, implementation elements, need for the project (what problem will the project address) and responds to the requirements listed below.

Project Monitoring Plan Requirements
The Project Monitoring Plan shall contain responses to the following questions:
• What are the anticipated project physical benefits?
• What are the corresponding numeric targets for each project benefit? • How will proposed numeric targets be measured?
• What are baseline conditions?
• When will the targets be met (e.g., upon project completion, five years after completion)? • How often will monitoring be undertaken (e.g., monthly, yearly). • Where are monitoring point locations (e.g., meter located at…, at stream mile…)? Include relevant maps.
• How will the project be maintained (e.g., irrigation, pest management, weed abatement)? • What will be the frequency and duration of maintenance proposed activities? • Are there any special environmental considerations (e.g., resource agency requirements, permit requirements, CEQA/NEPA mitigation measures)?
• Who is responsible for collecting the samples (i.e., who is conducting monitoring and/or maintenance)?
• How, and to whom, will monitoring results be reported (e.g., paper reports, online databases, public meetings)?
• What adaptive management strategies will be employed if problems are encountered during routine monitoring or maintenance?
• What is the anticipated life of the project?
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Grant Agreement No. 4600015400

EXHIBIT M

INVOICE GUIDANCE FOR ADMINISTRATIVE AND OVERHEAD CHARGES The funds provided pursuant to this Agreement may only be used for costs that are directly related to the funded Project. The following provides a list of typical requirements for invoicing, specifically providing guidance on the appropriate methods for invoicing administrative and direct overhead charges.

Administration Charges
Indirect and General Overhead (i.e., indirect overhead) charges are not an allowable expense for reimbursement. However, administrative expenses that are apportioned directly to the project are eligible for reimbursement. Cost such as rent, office supplies, fringe benefits, etc. can be “Direct Costs” and are eligible expenses as long as:
• There is a consistent, articulated method for how the costs are allocated that is submitted and approved by the Grant Manager. The allocation method must be fully documented for auditors. • A “fully-burdened labor rate” can be used to capture allowable administrative costs. • The administrative/overhead costs can never include:
o Non-project specific personnel and accounting services performed within the Grantee or an LPS’ organization
o Markup
o Tuition
o Conference fees
o Building and equipment depreciation or use allowances • Using a general overhead percentage is never allowed
Labor Rates
The Grantee must provide DWR with supporting documentation for personnel hours (see personnel billing rates letter in example invoice packet). The personnel rate letter should be submitted to the DWR Grant Manager prior to submittal of the first invoice. The supporting documentation must include, at a minimum, employee classifications that will reimbursed by grant funds and the corresponding hourly rate range. These rates should be “burdened”; the burdened rate must be consistent with the Grantee’s/Local Project Sponsors standardized allocation methodology. The supporting documentation should also provide an explanation of what costs make up the burdened rate and how those costs were determined. This information will be used to compare against personnel hours summary table invoice back up documentation. Periodic updates may be needed during the life of the grant which would be handled through a revised billing rate letter.

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DocuSign Envelope ID: 46F58C52-2BAA-45BA-828B-994007668008 Attachment 2

DocuSign Envelope ID: 46F58C52-2BAA-45BA-828B-994007668008 Attachment 2

Reso No. (CM)
Meeting Date: 082724 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE AWARDING A CONTRACT TO WATSONVILLE

WETLANDS WATCH FOR THE IMPLEMENTATION OF THE SANTA

CRUZ INTEGRATED REGIONAL WATER MANAGEMENT GRANT
PROPOSITION 1, ROUND 2, FOR THE ATKINSON LANE INTEGRATED

FLOOD MANAGEMENT AND WATERSHED RESTORATION PROJECT,
IN AN AMOUNT OF $341,920.00; AUTHORIZING AND DIRECTING THE

INTERIM CITY MANAGER TO EXECUTE SAME, AND APPROPRIATE
SUCH FUNDS FROM THE 0260 SPECIAL GRANTS ACCOUNT
WHEREAS, the City as the lead applicant, partnered with Watsonville Wetlands Watch to submit a grant application to the Santa Cruz Integrated Regional Water Management Group for a Department of Water Resource Proposition 1, Round 2 grant; and
WHEREAS the City and Watsonville Wetlands Watch were successfully awarded grant funds on November 28, 2023; and
WHEREAS, the City requires a contract with Watsonville Wetlands Watch for wetland stewardship, restoration, permitting, and public outreach.

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

1. Adopting a Resolution awarding a Contract to Watsonville Wetlands Watch 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 contract is hereby awarded to Watsonville Wetlands Watch, a corporation, to implement the Atkinson Lane Integrated Flood Management and Watershed Restoration Project, in an amount not to exceed $341,920.00.

Reso No. (CM)
Meeting Date: 082724 2

3. That the Contract for Consultant Services between the City of Watsonville and Watsonville Wetlands Watch, a copy of which is attached hereto and incorporated herein by this reference, is hereby approved.

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

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

6. That an appropriation of funds in the amount of $341,920 from the Special Grants Fund [0260] is hereby authorized.
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8/22/2024 4:46:58 PM
C:\Program Files\eSCRIBE\TEMP\16465417129\16465417129,,,PLHA Loan Documents for Tabasa Gardens.docx Agenda Report
MEETING DATE: Tuesday, August 27, 2024
TO: City Council
FROM: COMMUNITY DEVELOPMENT DIRECTOR MERRIAM

HOUSING MANAGER LANDAVERRY
SUBJECT: APPROVAL OF FINANCING LOAN DOCUMENTS FOR THE

PERMANENT LOCAL HOUSING ALLOCATION (PLHA)

FINANCING FOR TABASA GARDENS AFFORDABLE HOUSING

DEVELOPMENT AND APPROPRIATION OF FUNDS
RECOMMENDED ACTION:

It is recommended that the City Council, by Resolution, approve the financing loan documents for the Permanent Local Housing Allocation Program (PLHA) financing for Tabasa Gardens affordable housing project located at 1482 Freedom Boulevard and appropriate $1,000,000 in grant money awarded for the project from the California Department of Housing and Community Development (HCD) to subordinate the loans to the construction lender and to HCD, and authorize and direct the City Manager to negotiate and execute any loan and subordination documents necessary to implement the loan agreements subject to legal approval.

DISCUSSION:

On February 23, 2021, the City Council approved a 53-unit affordable housing project proposed by Eden Housing located at 1482 Freedom Boulevard, commonly known as Tabasa Gardens, rented at an affordable housing cost to low, very-low, and extremely-low income families. The project is in the final stages of completing its financing with a closing scheduled for September 2024. Eden Housing has formed a Limited Partnership for the purposes of the construction and operation of this project called Eden Freedom Investors, L.P.

The City is financing only a portion of the project financing through the City’s Successor Agency Housing Fund ($1,000,000) approved by Council and Council in its capacity as the Successor to the Housing Assets, by Resolution Nos. 204-20 (CM) and 7-20 (SHA) respectively, on November 10, 2020, and the State’s Permanent Local Housing Allocation Program (PLHA) ($1,000,000) for which the Council approved an application on October 11, 2022, for a total of $2,000,000.

8/22/2024 4:46:58 PM
C:\Program Files\eSCRIBE\TEMP\16465417129\16465417129,,,PLHA Loan Documents for Tabasa Gardens.docx The loan is structured with a term of 55 years at 3% simple interest. The City will receive 50% of any residual receipts through the life of the loan, which means that the City will receive payments in years that gross income exceeds annual operating expenses. This is a standard loan structure that the City has used in the past with non-profit housing developments.

The City was awarded $1,000,000 from the PLHA grant program to apply towards Tabasa Gardens financing and staff is now recommending appropriation of these funds through this agenda item. Tabasa Gardens is financing approximately $14,140,000 with US Bank through a Development Loan Agreement, $5,758,788 through the HCD’s Joe Serna Program pursuant to a Development Loan Agreement and $1,471,885 through HCD’s No Place Like Home Program pursuant to a Development Loan Agreement.

The City’s PLHA loan will include the execution of a PLHA Affordable Housing Regulatory Agreement, a Secured Promissory Note, a Loan Agreement and a Deed of Trust which were drafted by the City Attorney and are attached to this staff report (the Loan Documents). The California Department of Housing and Community Development is reviewing these documents and staff expect to receive approval in the coming weeks.

There will be other subordination agreements the City will be required to enter into related to each of these financing sources which are still being developed. The City will be required to subordinate its security interest to the above-enumerated financings, which is not an unusual request from entities like US Bank and the California Department of Housing and Community Development. A copy of the initial draft of the US Bank subordination is attached along with the other documents listed above.

Currently, there are still numerous parties related to this financing that are still making edits to the many documents that make up this financing package. The closing for this financing is scheduled for September 2024, but it is likely that edits to many of the agreements, including the City documents, may continue up to closing. Staff is therefore recommending Council give direction and delegate authority to the City Manager to review and execute any additional changes to existing agreements or new agreements necessary to close this financing. Staff is also recommending Council appropriate the PLHA grant in the amount of $1,000,000.00 into the City’s budget in a Special Revenue Fund.

STRATEGIC PLAN:

The creation and maintenance of affordable housing is consistent with the policies and goals of the City’s General Plan and Housing Element as well as the following City’s strategic goals:
3-Housing. The provision of $1 million loan towards the development and permanent financing for the 53- unit housing project supports the Council’s Strategic Plan Goal to provide high-quality housing for the City.

8/22/2024 4:46:58 PM
C:\Program Files\eSCRIBE\TEMP\16465417129\16465417129,,,PLHA Loan Documents for Tabasa Gardens.docx CEQA
The preparation of the loan documents is not subject to CEQA, as the action is not a project as defined in Section 15378(b) (2) of the Public Resources Code, and therefore no further review is required.

FINANCIAL IMPACT:

The City’s $1,000,000 contribution to the project will be fully funded with PLHA funds allocated from the California Department of Housing and Community Development Permanent Local Housing Allocation Program in the Affordable Housing Fund (0221).

ALTERNATIVE ACTION:

The Council has the following alternatives to consider:

1. Do not approve the financing Loan Documents; or

2. Provide alternative direction to staff.

ATTACHMENTS AND/OR REFERENCES (If any):

1. WATSONVILLE-EDEN PLHA Loan – Regulatory Agreement

2. WATSONVILLE-EDEN PLHA Loan – Loan Agreement

3. WATSONVILLE-EDEN PLHA Loan – Promissory Note

4. WATSONVILLE-EDEN PLHA Loan – Deed of Trust

5. Subordinate Agreement – US Bank – 2024

4873-0267-0218 v3 1
Recording requested by
the City of Watsonville
and when recorded mail to:

City of Watsonville
250 Main Street,
Watsonville, CA 95076

EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383
APN: 019-226-41 (Space above for Recorder’s use only)

AFFORDABLE HOUSING REGULATORY AGREEMENT
(PLHA Loan)
This Affordable Housing Regulatory Agreement (“Agreement”) is made this ____ day of ___________________, 2024, by and between the CITY OF WATSONVILLE, a municipal corporation (“City”), and EDEN FREEDOM INVESTORS, L.P., a California limited partnership (“Developer”).

RECITALS
A. Developer is the fee owner of certain land in the City of Watsonville, California, together with certain improvements thereon, and more particularly described in Exhibit A (collectively, “Development”).

B. Developer is constructing a fifty-three (53) unit (including one manager’s unit) housing project located on the Development (“Project”).

C. This Agreement is the “Regulatory Agreement” and one of the “City Documents” as described in that certain Loan Agreement, dated on or about even date herewith between City and Developer (“Loan Agreement”), which provides for a One Million and 00/100 Dollar ($1,000,000.00) loan from City to Developer (“City Loan”). This Agreement is, in part, to comply with City’s obligations to the California Department of Housing and Community Development (“HCD”) under the PLHA Grant (as defined in the Loan Agreement).

D. As required by the PLHA Grant, as further consideration for the City Loan, and to further the interests of City, Developer has agreed to enter into and record this Agreement. The purpose of this Agreement is to regulate and restrict the occupancy, rents, operation, ownership, and management of the Development and the Project for affordable housing and related uses. The covenants in this Agreement are intended to run with the land and be binding on Developer and its successors and assigns in the Development, notwithstanding payoff of the Loan.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Developer and City hereby agree as follow:

Attachment 1

4873-0267-0218 v3 2
A. Definitions.

The following terms have the meanings and content set forth in this section wherever used in this Agreement or attached exhibits.
“Affordable Rent” means the total charges for rent and utilities to each Qualifying Household as allowed based on household size, income level and unit size pursuant to Fair Market Rents and Income Limits published annually by HUD.
“City” is the City of Watsonville.
“City Documents” is defined in Recital C.
“City Loan” is defined in Recital C.
“County” is the County of Santa Cruz, California.
“Developer” means Eden Freedom Investors, L.P., a California limited partnership, and its officers, officials, directors, employees, agents and authorized representatives. “Development” is defined in Recital A.
“HCD” means the California Department of Housing and Community Development. “HUD” means the Federal Department of Housing and Urban Development, or successor. “Loan Agreement” is defined in Recital C.
“Lower Income Household” means a household whose annual income does not exceed eighty percent (80%) of the Area Median Income as determined for the City of Watsonville HUD Metro FMR Area annually by HUD and adjusted for household size.

In the event that such income determinations are no longer published by HUD, “Median Income” shall mean the median gross yearly income for households in the County, as published periodically by HCD. In the event that such income determinations are no longer published by HCD, or are not updated for a period of at least eighteen (18) months, City shall provide Developer with other income determinations which are reasonably similar with respect to method of calculation to these previously published by HCD or HUD. “PLHA Grant” is defined in Recital C.
“Project” means the Units in the Development and any supportive services and programs provided to tenants of the Development.
“Qualifying Household” means a household that qualifies as a Lower Income Household. “Restricted Units” is defined in Section C.1.

Attachment 1

4873-0267-0218 v3 3
“TCAC” means the California Tax Credit Allocation Committee. “Term” means the term of this Agreement described herein. “Unit” means any one of the residential units in the Project.

B. DEVELOPER’S OBLIGATIONS.

1. Compliance with Loan Agreement and PLHA Grant. Developer’s actions with respect to the Development shall at all times be in full conformity with all of the requirements of the Loan Agreement and PLHA Grant, including but not limited to the insurance requirements contained therein.

2. Use For Affordable Housing. Developer agrees that, at all times during the Term of this Agreement, a minimum of fifty-two (52) Units in the Project will be used as affordable housing for Lower Income Households.

3. Term of Agreement. This Agreement shall commence upon completion of the construction of the Project, as evidenced by issuance of a final Certificate of Occupancy (“Completion Date”), and shall remain in full force and effect for fifty-five (55) years thereafter, or such other time as may be required to comply with the PLHA Grant, whichever is less.

C. OCCUPANCY AND RENTS.

1. Occupancy of Units. During the term of this Agreement, fifty-two (52) Units in the Project will be used as affordable housing for Lower Income Households (“Restricted Units”).

2. Tenant Selection. Developer shall adopt written tenant selection policies for the Restricted Units that: (i) are reasonably related to program eligibility and the applicant’s ability to perform the obligations of the applicable lease; (ii) are consistent with the purpose of providing housing for Qualifying Households; and (iii) give prompt written notification to any rejected applicant of the grounds for rejection.

3. Nondiscrimination. Developer shall not discriminate or segregate in the use, enjoyment, occupancy, conveyance, lease, sublease, or rental of any units in the Project on the basis of race, color, ancestry, national origin, religion, sex, sexual preference, age, marital status, family status, source of income, physical or mental disability, Acquired Immune Deficiency Syndrome (AIDS) or AIDS-related conditions (ARC), or any other arbitrary basis. Developer shall include a statement in all advertisements, notices and signs for the availability of Units for rent to the effect that Developer is an Equal Housing Opportunity Provider.

4. Income Certification and Increases In Tenant Income. Developer shall certify the incomes of all prospective tenants in the Restricted Units prior to their initial occupancy of a Unit and shall recertify their incomes annually. If upon recertification, a tenant’s income exceeds the maximum designated for a Lower Income Household, Developer may increase the rent for such tenants to no more than 30% of the tenant’s income and the tenant may be permitted to continue to occupy a Unit in the Project. Developer shall provide City an annual report on the income recertification evidencing that Project occupants meet the requirements of Qualified Attachment 1

4873-0267-0218 v3 4
Households.

5. Rental Charges. Total charges for rent, utilities and related services for each Unit in the Project shall not exceed the Affordable Rent for that Unit. If upon recertification, a tenant’s income exceeds the Qualifying Household limit for the applicable Unit type, Developer may increase the rent for such tenants to no more than 30% of the Tenant’s monthly income less utility and other mandatory charges.

6. Conflicts With Other Regulatory Requirements. If any other regulatory agreement executed by Developer enforces the requirements of any loan program or low income housing tax credits as a means of providing financing or equity for the Development or Project are more restrictive than the rent and income restrictions contained in this Agreement, compliance with the rent and income restrictions of any such regulatory agreements shall be deemed compliance with this Agreement.

D. PROPERTY MANAGEMENT.

1. Management Responsibilities. Developer is responsible for all management functions with respect to the Project, including without limitation the selection of tenants, certification and recertification of household size and income, evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, and security. City shall have no responsibility over management of the Development or the Project.

2. Review of Management Policies. Developer shall submit its written management policies with respect to the Project and Program to City for its review, and shall amend such policies in any way necessary to insure that such policies comply with the provisions of this Agreement and the requirements of all parties providing financing for the Development and/or the Project.

3. Inspection and Records. Developer shall maintain records that clearly document Developer’s performance of its obligations to operate the Development under the terms of this Agreement. Developer shall submit any records to City within ten (10) business days of City’s request. Developer shall permit City to enter and inspect the Project for compliance with obligations under this Agreement upon seventy-two (72) hours advance notice of such visit by City to Developer or Developer’s management agent and to tenants of any Units.

4. Annual Report. Developer shall submit to City each year, on or prior to the date such report is required to be submitted to TCAC, a report for the preceding calendar year showing the necessary information to allow City to determine Developer’s compliance with this Agreement, and within thirty (30) days after receipt of a written request, any other information or completed forms requested by City in order to comply with City reporting requirements.

E. GENERAL PROVISIONS.

1. Default and Remedies. In the event of any Developer breach of any agreement or obligation under this Agreement, City shall provide written notice to Developer and Developer’s limited partner(s) (as identified in Section 9 of this Agreement) of such breach. Developer shall have an opportunity to cure the breach within thirty (30) days from Developer’s receipt of such Attachment 1

4873-0267-0218 v3 5
written notice or such longer period of time as City determines is necessary to cure the breach if Developer diligently undertakes to cure. If Developer fails to perform a timely cure, City may proceed with any remedy provided under the City Documents (subject to any subordination agreement) allowed by law to enforce the terms and conditions of this Agreement. Developer’s limited partner(s) shall have the right, but not the obligation, to cause a cure of any such breach or default upon the same terms and conditions afforded to Developer. A cure by any other Project lender or Developer’s limited partner(s) shall be accepted or rejected on the same basis as if made or tendered by Developer.

2. Binding Upon Successors. All provisions of this Agreement shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors-in-interest, transferee, and assigns of Developer and City, and shall run with the land for the full term of this Agreement, regardless of any subordination, cancellation, surrender, assignment or any conveyance or transfer of the Development or Project or portion thereof, or any payment, prepayment, modification or expiration of any other City Documents.

3. Non-Liability of Officials, Employees and Agents. No officers, directors, employees and agents of City shall be personally liable to Developer for any obligation created under the terms of this Agreement.

4. Indemnity. Developer shall indemnify and hold City free and harmless against any losses, damages, liabilities, claims, demands, judgments, actions, court costs, and legal or other expenses (including reasonable attorneys’ fees) which City may incur as a direct or indirect consequence of Developer’s failure to perform any obligations as and when required by this Agreement. This indemnity obligation shall not extend to any claim arising solely from the gross negligence or willful acts of City, its agents, and its employees. Developer’s duty to indemnify City shall survive the term of this Agreement. Notwithstanding the foregoing or anything else to the contrary contained herein, no foreclosing lender or its successors and/or assigns shall be responsible or liable for any indemnity obligations that accrue hereunder prior to the completion of foreclosure (or acceptance of a deed in lieu thereof).

5. Primacy of PLHA Grant. This Agreement is subject to all applicable requirements of the PLHA Grant. In the event that any provisions of this Agreement and PLHA Grant conflict, the terms of the PLHA Grant shall control.

6. Governing Law. This Agreement shall be interpreted under and be governed by the laws of the State of California applicable to contracts executed and wholly performed in that State, except for those provisions preempted by federal law.

7. Agreement Controls. Notwithstanding any provisions of the Loan Agreement, in the event that any provisions of this Agreement and Loan Agreement conflict, the terms of this Agreement shall control.

8. Consents and Approvals. Any consent or approval of City required under this Agreement shall not be unreasonably withheld. Any approval must be in writing and executed by an authorized representative of City.

9. Notices, Demands and Communication. Formal notices, demands and communications between Developer and City shall be sufficiently given and shall not be deemed Attachment 1

4873-0267-0218 v3 6
given unless dispatched by (i) delivered personally or by courier, (ii) sent by overnight express delivery, or (iii) mailed by registered or certified mail (return receipt requested), postage prepaid, to the principal offices of Developer and City as follows:

City: 275 Main Street,
Watsonville, CA 95076
Attention: City Manager
With a copy to: City of Watsonville
275 Main Street,
Watsonville, CA 95076
Attention: City Attorney
Developer: Eden Freedom Investors, L.P.
c/o Eden Investment’s Inc.
22645 Grand Street
Hayward, CA 94541
Attention: Chief of Real Estate Development
With a copy to: Gubb & Barshay LLP.
235 Montgomery Street
San Francisco, CA 94104
Attention: Evan Gross, Esq.

Limited Partner:

U.S. Bancorp Community Development Corporation
1307 Washington Avenue, Suite 300
Mail Code: SL MO RMCD
St. Louis, MO 63103
Attn.: Director of LIHTC Asset Management
Phone: (314) 335-2600
With a copy to: Kutak Rock LLP
1650 Farnam Street
Omaha, Nebraska 68102
Attn: Jill H. Goldstein, Esq.

10. Relationship of Parties. The relationship of Developer and City during the term of this Agreement is solely that of borrower and lender and shall not be construed as a joint venture, equity venture, or partnership.

11. Waiver. Any waiver by City of any obligation in this Agreement must be in writing. No waiver will be implied from any delay or failure by City to take action on any breach or default of Developer or to pursue any remedy allowed under this Agreement, the Loan Agreement or applicable law. Any extension of time granted to Developer to perform any obligation under this Agreement shall not operate as a waiver or release from any of its obligations under this Agreement. Consent by City to any act or omission by Developer shall not be construed to be consent to any other or subsequent act or omission or to waive the requirement for City’s written consent to future waivers.

Attachment 1