Watsonville City Council
October 28, 2025

In Process
Consultant Contract Architects or Engineers w/employees On Demand Page 13 of 25 • The Civil Rights Restoration Act of 1987 (PL 100-209) (broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, the Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the Federal-aid recipients, sub-recipients and contractors, whether such programs or activities are Federally funded or not); • Titles II and III of the Americans with Disabilities Act of 1990, which prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 USC §§ 12131 – 12189) as implemented by U.S. Department of Transportation regulations at 49 CFR parts 37 and 38; • The Federal Aviation Administration’s Nondiscrimination statute (49 USC § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex); • Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures nondiscrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations; • Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed.

Reg. at 74087 to 74100);
• Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 USC 1681 et seq).

D5 CLEAN AIR AND WATER POLLUTION CONTROL
2 CFR § 200, Appendix II(G)
Contractor agrees to comply with all applicable standards, orders, and regulations issued pursuant to the Clean Air Act (42 USC § 740-7671q) and the Federal Water Pollution Control Act as amended (33 USC § 1251-1387). The Contractor agrees to report any violation to the Owner immediately upon discovery.

The Owner assumes responsibility for notifying the Environmental Protection Agency (EPA) and the Federal Aviation Administration.

Contractor must include this requirement in all subcontracts that exceeds $150,000.

D6 DEBARMENT AND SUSPENSION
2 CFR part 180 (Subpart C)
2 CFR part 1200
DOT Order 4200.5
Docusign Envelope ID: 685B62C1-638E-4C55-A634-D026FBBDB895

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Consultant Contract Architects or Engineers w/employees On Demand Page 14 of 25 B6.1 SOLICITATION CLAUSE

CERTIFICATION OF OFFEROR/BIDDER REGARDING DEBARMENT
By submitting a bid/proposal under this solicitation, the bidder or offeror certifies that neither it nor its principals are presently debarred or suspended by any Federal department or agency from participation in this transaction.

CERTIFICATION OF LOWER TIER CONTRACTORS REGARDING DEBARMENT The successful bidder, by administering each lower tier subcontract that exceeds $25,000 as a “covered transaction”, must verify each lower tier participant of a “covered transaction” under the project is not presently debarred or otherwise disqualified from participation in this federally assisted project. The successful bidder will accomplish this by:

1. Checking the System for Award Management at website: http://www.sam.gov.

2. Collecting a certification statement similar to the Certification of Offerer /Bidder Regarding Debarment, above.

3. Inserting a clause or condition in the covered transaction with the lower tier contract.

If the Federal Aviation Administration later determines that a lower tier participant failed to disclose to a higher tier participant that it was excluded or disqualified at the time it entered the covered transaction, the FAA may pursue any available remedies, including suspension and debarment of the non-compliant participant.

D7 DISADVANTAGED BUSINESS ENTERPRISE
49 CFR part 26
The requirements of 49 CFR part 26 apply to this contract. It is the policy of the City of Watsonville to practice nondiscrimination based on race, color, sex, or national origin in the award or performance of this contract. The Owner encourages participation by all firms qualifying under this solicitation regardless of business size or ownership.

Contract Assurance (§ 26.13) –
The Contractor or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The Contractor shall carry out applicable requirements of 49 CFR part 26 in the award and administration of Department of Transportation-assisted contracts. Failure by the Contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the Owner deems appropriate, which may include, but is not limited to:
1) Withholding monthly progress payments;
2) Assessing sanctions;
3) Liquidated damages; and/or
4) Disqualifying the Contractor from future bidding as non-responsible.

Prompt Payment (§26.29) – The prime contractor agrees to pay each subcontractor under this prime contract for satisfactory performance of its contract no later than 7 days from the receipt of each payment Docusign Envelope ID: 685B62C1-638E-4C55-A634-D026FBBDB895

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Consultant Contract Architects or Engineers w/employees On Demand Page 15 of 25 the prime contractor receives from City of Watsonville The prime contractor agrees further to return retainage payments to each subcontractor within 7 days after the subcontractor’s work is satisfactorily completed. Any delay or postponement of payment from the above referenced time frame may occur only for good cause following written approval of the City of Watsonville. This clause applies to both DBE and non-DBE subcontractors.

D8 DISTRACTED DRIVING
Executive Order 13513
DOT Order 3902.10

TEXTING WHEN DRIVING
In accordance with Executive Order 13513, “Federal Leadership on Reducing Text Messaging While Driving”, (10/1/2009) and DOT Order 3902.10, “Text Messaging While Driving”, (12/30/2009), the Federal Aviation Administration encourages recipients of Federal grant funds to adopt and enforce safety policies that decrease crashes by distracted drivers, including policies to ban text messaging while driving when performing work related to a grant or subgrant.

In support of this initiative, the Owner encourages the Contractor to promote policies and initiatives for its employees and other work personnel that decrease crashes by distracted drivers, including policies that ban text messaging while driving motor vehicles while performing work activities associated with the project. The Contractor must include the substance of this clause in all sub-tier contracts exceeding $3,500 that involve driving a motor vehicle in performance of work activities associated with the project.

D9 ENERGY CONSERVATION REQUIREMENTS
2 CFR § 200, Appendix II(H)
Contractor and Subcontractor agree to comply with mandatory standards and policies relating to energy efficiency as contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (42 USC 6201et seq).

D10 EQUAL EMPLOYMENT OPPORTUNITY (EEO)
2 CFR 200, Appendix II(C) 41
CFR § 60-1.4
41 CFR § 60-4.3
Executive Order 11246

EQUAL OPPORTUNITY CLAUSE
During the performance of this contract, the Contractor agrees as follows:
(1) The Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, sexual orientation, gender identify, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff, or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and Docusign Envelope ID: 685B62C1-638E-4C55-A634-D026FBBDB895

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Consultant Contract Architects or Engineers w/employees On Demand Page 16 of 25 applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause.
(2) The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive considerations for employment without regard to race, color, religion, sex, or national origin. (3) The Contractor will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers’ representatives of the Contractor’s commitments under this section and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (4) The Contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. (5) The Contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. (6) In the event of the Contractor’s noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. (7) The Contractor will include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor.

The Contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for noncompliance:

Provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency the Contractor may request the United States to enter into such litigation to protect the interests of the United States.

STANDARD FEDERAL EQUAL EMPLOYMENT OPPORTUNITY

CONSTRUCTION CONTRACT SPECIFICATIONS

1. As used in these specifications:
a. “Covered area” means the geographical area described in the solicitation from which this contract resulted;
b. “Director” means Director, Office of Federal Contract Compliance Programs (OFCCP), U.S.

Department of Labor, or any person to whom the Director delegates authority; c. “Employer identification number” means the Federal social security number used on the Docusign Envelope ID: 685B62C1-638E-4C55-A634-D026FBBDB895

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Consultant Contract Architects or Engineers w/employees On Demand Page 17 of 25 Employer’s Quarterly Federal Tax Return, U.S. Treasury Department Form 941; d. “Minority” includes:
(1) Black (all persons having origins in any of the Black African racial groups not of Hispanic origin);
(2) Hispanic (all persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish culture or origin regardless of race);
(3) Asian and Pacific Islander (all persons having origins in any of the original peoples of the Far East, Southeast Asia, the Indian Subcontinent, or the Pacific Islands); and (4) American Indian or Alaskan native (all persons having origins in any of the original peoples of North America and maintaining identifiable tribal affiliations through membership and participation or community identification).

2. Whenever the Contractor, or any subcontractor at any tier, subcontracts a portion of the work involving any construction trade, it shall physically include in each subcontract in excess of $10,000 the provisions of these specifications and the Notice which contains the applicable goals for minority and female participation and which is set forth in the solicitations from which this contract resulted.

3. If the Contractor is participating (pursuant to 41 CFR part 60-4.5) in a Hometown Plan approved by the U.S. Department of Labor in the covered area either individually or through an association, its affirmative action obligations on all work in the Plan area (including goals and timetables) shall be in accordance with that Plan for those trades which have unions participating in the Plan. Contractors shall be able to demonstrate their participation in and compliance with the provisions of any such Hometown Plan. Each contractor or subcontractor participating in an approved plan is individually required to comply with its obligations under the EEO clause and to make a good faith effort to achieve each goal under the Plan in each trade in which it has employees. The overall good faith performance by other contractors or subcontractors toward a goal in an approved Plan does not excuse any covered contractor’s or subcontractor’s failure to take good faith efforts to achieve the Plan goals and timetables.

4. The Contractor shall implement the specific affirmative action standards provided in paragraphs 7a through 7p of these specifications. The goals set forth in the solicitation from which this contract resulted are expressed as percentages of the total hours of employment and training of minority and female utilization the Contractor should reasonably be able to achieve in each construction trade in which it has employees in the covered area. Covered construction contractors performing construction work in a geographical area where they do not have a Federal or federally assisted construction contract shall apply the minority and female goals established for the geographical area where the work is being performed. Goals are published periodically in the Federal Register in notice form, and such notices may be obtained from any Office of Federal Contract Compliance Programs office or from Federal procurement contracting officers. The Contractor is expected to make substantially uniform progress in meeting its goals in each craft during the period specified.

5. Neither the provisions of any collective bargaining agreement nor the failure by a union with whom the Contractor has a collective bargaining agreement to refer either minorities or women shall excuse the Contractor’s obligations under these specifications, Executive Order 11246, or the regulations promulgated pursuant thereto.

Docusign Envelope ID: 685B62C1-638E-4C55-A634-D026FBBDB895

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6. In order for the non-working training hours of apprentices and trainees to be counted in meeting the goals, such apprentices and trainees shall be employed by the Contractor during the training period and the Contractor shall have made a commitment to employ the apprentices and trainees at the completion of their training, subject to the availability of employment opportunities. Trainees shall be trained pursuant to training programs approved by the U.S. Department of Labor.

7. The Contractor shall take specific affirmative actions to ensure equal employment opportunity. The evaluation of the Contractor’s compliance with these specifications shall be based upon its effort to achieve maximum results from its actions. The Contractor shall document these efforts fully and shall implement affirmative action steps at least as extensive as the following:
a. Ensure and maintain a working environment free of harassment, intimidation, and coercion at all sites, and in all facilities at which the Contractor’s employees are assigned to work. The Contractor, where possible, will assign two or more women to each construction project. The Contractor shall specifically ensure that all foremen, superintendents, and other onsite supervisory personnel are aware of and carry out the Contractor’s obligation to maintain such a working environment, with specific attention to minority or female individuals working at such sites or in such facilities. b. Establish and maintain a current list of minority and female recruitment sources, provide written notification to minority and female recruitment sources and to community organizations when the Contractor or its unions have employment opportunities available, and maintain a record of the organizations’ responses.
c. Maintain a current file of the names, addresses, and telephone numbers of each minority and female off-the-street applicant and minority or female referral from a union, a recruitment source, or community organization and of what action was taken with respect to each such individual. If such individual was sent to the union hiring hall for referral and was not referred back to the Contractor by the union or, if referred, not employed by the Contractor, this shall be documented in the file with the reason therefore along with whatever additional actions the Contractor may have taken. d. Provide immediate written notification to the Director when the union or unions with which the Contractor has a collective bargaining agreement has not referred to the Contractor a minority person or female sent by the Contractor, or when the Contractor has other information that the union referral process has impeded the Contractor’s efforts to meet its obligations. e. Develop on-the-job training opportunities and/or participate in training programs for the area which expressly include minorities and women, including upgrading programs and apprenticeship and trainee programs relevant to the Contractor’s employment needs, especially those programs funded or approved by the Department of Labor. The Contractor shall provide notice of these programs to the sources compiled under 7b above.
f. Disseminate the Contractor’s EEO policy by providing notice of the policy to unions and training programs and requesting their cooperation in assisting the Contractor in meeting its EEO obligations; by including it in any policy manual and collective bargaining agreement; by publicizing it in the company newspaper, annual report, etc.; by specific review of the policy with all management personnel and with all minority and female employees at least once a year; and by posting the company EEO policy on bulletin boards accessible to all employees at each location where construction work is performed.

Docusign Envelope ID: 685B62C1-638E-4C55-A634-D026FBBDB895

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Consultant Contract Architects or Engineers w/employees On Demand Page 19 of 25 g. Review, at least annually, the company’s EEO policy and affirmative action obligations under these specifications with all employees having any responsibility for hiring, assignment, layoff, termination, or other employment decisions, including specific review of these items, with onsite supervisory personnel such superintendents, general foremen, etc., prior to the initiation of construction work at any job site. A written record shall be made and maintained identifying the time and place of these meetings, persons attending, subject matter discussed, and disposition of the subject matter.
h. Disseminate the Contractor’s EEO policy externally by including it in any advertising in the news media, specifically including minority and female news media, and providing written notification to and discussing the Contractor’s EEO policy with other contractors and subcontractors with whom the Contractor does or anticipates doing business.
i. Direct its recruitment efforts, both oral and written, to minority, female, and community organizations, to schools with minority and female students; and to minority and female recruitment and training organizations serving the Contractor’s recruitment area and employment needs. Not later than one month prior to the date for the acceptance of applications for apprenticeship or other training by any recruitment source, the Contractor shall send written notification to organizations, such as the above, describing the openings, screening procedures, and tests to be used in the selection process. j. Encourage present minority and female employees to recruit other minority persons and women and, where reasonable, provide after school, summer, and vacation employment to minority and female youth both on the site and in other areas of a contractor’s workforce. k. Validate all tests and other selection requirements where there is an obligation to do so under 41 CFR part 60-3.
l. Conduct, at least annually, an inventory and evaluation at least of all minority and female personnel, for promotional opportunities and encourage these employees to seek or to prepare for, through appropriate training, etc., such opportunities. m. Ensure that seniority practices, job classifications, work assignments, and other personnel practices do not have a discriminatory effect by continually monitoring all personnel and employment related activities to ensure that the EEO policy and the Contractor’s obligations under these specifications are being carried out.
n. Ensure that all facilities and company activities are non-segregated except that separate or single user toilet and necessary changing facilities shall be provided to assure privacy between the sexes. o. Document and maintain a record of all solicitations of offers for subcontracts from minority and female construction contractors and suppliers, including circulation of solicitations to minority and female contractor associations and other business associations. p. Conduct a review, at least annually, of all supervisor’s adherence to and performance under the Contractor’s EEO policies and affirmative action obligations.

8. Contractors are encouraged to participate in voluntary associations, which assist in fulfilling one or more of their affirmative action obligations (7a through 7p). The efforts of a contractor association, joint contractor union, contractor community, or other similar groups of which the Contractor is a member and participant may be asserted as fulfilling any one or more of its obligations under 7a through 7p of these specifications provided that the Contractor actively participates in the group, makes every Docusign Envelope ID: 685B62C1-638E-4C55-A634-D026FBBDB895

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Consultant Contract Architects or Engineers w/employees On Demand Page 20 of 25 effort to assure that the group has a positive impact on the employment of minorities and women in the industry, ensures that the concrete benefits of the program are reflected in the Contractor’s minority and female workforce participation, makes a good faith effort to meet its individual goals and timetables, and can provide access to documentation which demonstrates the effectiveness of actions taken on behalf of the Contractor. The obligation to comply, however, is the Contractor’s and failure of such a group to fulfill an obligation shall not be a defense for the Contractor’s noncompliance.

9. A single goal for minorities and a separate single goal for women have been established. The Contractor, however, is required to provide equal employment opportunity and to take affirmative action for all minority groups, both male and female, and all women, both minority and non-minority.

Consequently, if the particular group is employed in a substantially disparate manner (for example, even though the Contractor has achieved its goals for women generally), the Contractor may be in violation of the Executive Order if a specific minority group of women is underutilized.

10. The Contractor shall not use the goals and timetables or affirmative action standards to discriminate against any person because of race, color, religion, sex, or national origin.

11. The Contractor shall not enter into any subcontract with any person or firm debarred from Government contracts pursuant to Executive Order 11246.

12. The Contractor shall carry out such sanctions and penalties for violation of these specifications and of the Equal Opportunity Clause, including suspension, termination, and cancellation of existing subcontracts as may be imposed or ordered pursuant to Executive Order 11246, as amended, and its implementing regulations, by the Office of Federal Contract Compliance Programs. Any contractor who fails to carry out such sanctions and penalties shall be in violation of these specifications and Executive Order 11246, as amended.

13. The Contractor, in fulfilling its obligations under these specifications, shall implement specific affirmative action steps, at least as extensive as those standards prescribed in paragraph 7 of these specifications, so as to achieve maximum results from its efforts to ensure equal employment opportunity. If the Contractor fails to comply with the requirements of the Executive Order, the implementing regulations, or these specifications, the Director shall proceed in accordance with 41 CFR part 60-4.8.

14. The Contractor shall designate a responsible official to monitor all employment related activity to ensure that the company EEO policy is being carried out, to submit reports relating to the provisions hereof as may be required by the Government, and to keep records. Records shall at least include for each employee, the name, address, telephone number, construction trade, union affiliation if any, employee identification number when assigned, social security number, race, sex, status (e.g., mechanic, apprentice, trainee, helper, or laborer), dates of changes in status, hours worked per week in the indicated trade, rate of pay, and locations at which the work was performed. Records shall be maintained in an easily understandable and retrievable form; however, to the degree that existing records satisfy this requirement, contractors shall not be required to maintain separate records.

15. Nothing herein provided shall be construed as a limitation upon the application of other laws which establish different standards of compliance or upon the application of requirements for the hiring of local or other area residents (e.g. those under the Public Works Employment Act of 1977 and the Community Development Block Grant Program).

Docusign Envelope ID: 685B62C1-638E-4C55-A634-D026FBBDB895

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Consultant Contract Architects or Engineers w/employees On Demand Page 21 of 25 D11 FEDERAL FAIR LABOR STANDARDS ACT (FEDERAL MINIMUM WAGE) 29 USC § 201, et seq
All contracts and subcontracts that result from this solicitation incorporate by reference the provisions of 29 CFR part 201, the Federal Fair Labor Standards Act (FLSA), with the same force and effect as if given in full text. The FLSA sets minimum wage, overtime pay, recordkeeping, and child labor standards for full and part-time workers.

The Consultant has full responsibility to monitor compliance to the referenced statute or regulation. The Consultant must address any claims or disputes that arise from this requirement directly with the U.S.

Department of Labor – Wage and Hour Division.

D12 LOBBYING AND INFLUENCING FEDERAL EMPLOYEES
31 USC § 1352 – Byrd Anti-Lobbying Amendment
2 CFR part 200, Appendix II(J)
49 CFR part 20, Appendix A

CERTIFICATION REGARDING LOBBYING
The Bidder or Offeror certifies by signing and submitting this bid or proposal, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the Bidder or Offeror, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.
(3) The undersigned shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required Docusign Envelope ID: 685B62C1-638E-4C55-A634-D026FBBDB895

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D13 OCCUPATIONAL SAFETY AND HEALTH ACT OF 1970
29 CFR part 1910
All contracts and subcontracts that result from this solicitation incorporate by reference the requirements of 29 CFR Part 1910 with the same force and effect as if given in full text. The employer must provide a work environment that is free from recognized hazards that may cause death or serious physical harm to the employee. The employer retains full responsibility to monitor its compliance and their subcontractor’s compliance with the applicable requirements of the Occupational Safety and Health Act of 1970 (20 CFR Part 1910). The employer must address any claims or disputes that pertain to a referenced requirement directly with the U.S. Department of Labor – Occupational Safety and Health Administration.

D14 TAX DELINQUENCY AND FELONY CONVICTIONS

CERTIFICATION OF OFFEROR/BIDDER REGARDING TAX DELINQUENCY AND FELONY

CONVICTIONS
The applicant must complete the following two certification statements. The applicant must indicate its current status as it relates to tax delinquency and felony conviction by inserting a checkmark (✓) in the space following the applicable response. The applicant agrees that, if awarded a contract resulting from this solicitation, it will incorporate this provision for certification in all lower tier subcontracts.

Certifications
The applicant represents that it is ( ✓ ) is not ( X) a corporation that has any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability.

The applicant represents that it is ( ✓ ) is not ( X) is not a corporation that was convicted of a criminal violation under any Federal law within the preceding 24 months. Note If an applicant responds in the affirmative to either of the above representations, the applicant is ineligible to receive an award unless the sponsor has received notification from the agency suspension and debarment official (SDO) that the SDO has considered suspension or debarment and determined that further action is not required to protect the Government’s interests. The applicant therefore must provide information to the owner about its tax liability or conviction to the Owner, who will then notify the FAA Airports District Office, which will then notify the agency’s SDO to facilitate completion of the required considerations before award decisions are made.

Term Definitions
Felony conviction: Felony conviction means a conviction within the preceding twentyfour (24) months of a felony criminal violation under any Federal law and includes conviction of an offense defined in a section of the U.S. code that specifically classifies the offense as a felony and conviction of an offense that is classified as a felony under 18 U.S.C. § 3559.

Docusign Envelope ID: 685B62C1-638E-4C55-A634-D026FBBDB895

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Consultant Contract Architects or Engineers w/employees On Demand Page 23 of 25 Tax Delinquency: A tax delinquency is any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted, or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability.

D15 TERMINATION OF CONTRACT
B15.1
2 CFR § 200 Appendix II(B)
FAA Advisory Circular 150/5370-10, Section 80-09

TERMINATION FOR CONVENIENCE (PROFESSIONAL SERVICES)
The Owner may, by written notice to the Consultant, terminate this Agreement for its convenience and without cause or default on the part of Consultant. Upon receipt of the notice of termination, except as explicitly directed by the Owner, the Contractor must immediately discontinue all services affected.

Upon termination of the Agreement, the Consultant must deliver to the Owner all data, surveys, models, drawings, specifications, reports, maps, photographs, estimates, summaries, and other documents and materials prepared by the Engineer under this contract, whether complete or partially complete.

Owner agrees to make just and equitable compensation to the Consultant for satisfactory work completed up through the date the Consultant receives the termination notice. Compensation will not include anticipated profit on non-performed services.

Owner further agrees to hold Consultant harmless for errors or omissions in documents that are incomplete as a result of the termination action under this clause.

TERMINATION FOR DEFAULT (PROFESSIONAL SERVICES)
Either party may terminate this Agreement for cause if the other party fails to fulfill its obligations that are essential to the completion of the work per the terms and conditions of the Agreement. The party initiating the termination action must allow the breaching party an opportunity to dispute or cure the breach.

The terminating party must provide the breaching party [7] days advance written notice of its intent to terminate the Agreement. The notice must specify the nature and extent of the breach, the conditions necessary to cure the breach, and the effective date of the termination action. The rights and remedies in this clause are in addition to any other rights and remedies provided by law or under this agreement. a) Termination by Owner: The Owner may terminate this Agreement in whole or in part, for the failure of the Consultant to:

1. Perform the services within the time specified in this contract or by Owner approved extension;

2. Make adequate progress so as to endanger satisfactory performance of the Project; or 3. Fulfill the obligations of the Agreement that are essential to the completion of the Project.

Upon receipt of the notice of termination, the Consultant must immediately discontinue all services affected unless the notice directs otherwise. Upon termination of the Agreement, the Docusign Envelope ID: 685B62C1-638E-4C55-A634-D026FBBDB895

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Consultant Contract Architects or Engineers w/employees On Demand Page 24 of 25 Consultant must deliver to the Owner all data, surveys, models, drawings, specifications, reports, maps, photographs, estimates, summaries, and other documents and materials prepared by the Engineer under this contract, whether complete or partially complete.

Owner agrees to make just and equitable compensation to the Consultant for satisfactory work completed up through the date the Consultant receives the termination notice. Compensation will not include anticipated profit on non-performed services.

Owner further agrees to hold Consultant harmless for errors or omissions in documents that are incomplete as a result of the termination action under this clause.

If, after finalization of the termination action, the Owner determines the Consultant was not in default of the Agreement, the rights and obligations of the parties shall be the same as if the Owner issued the termination for the convenience of the Owner. b) Termination by Consultant: The Consultant may terminate this Agreement in whole or in part, if the Owner:

1. Defaults on its obligations under this Agreement;

2. Fails to make payment to the Consultant in accordance with the terms of this Agreement;

3. Suspends the Project for more than [180] days due to reasons beyond the control of the Consultant.

Upon receipt of a notice of termination from the Consultant, Owner agrees to cooperate with Consultant for the purpose of terminating the agreement or portion thereof, by mutual consent. If Owner and Consultant cannot reach mutual agreement on the termination settlement, the Consultant may, without prejudice to any rights and remedies it may have, proceed with terminating all or parts of this Agreement based upon the Owner’s breach of the contract.

In the event of termination due to Owner breach, the Engineer is entitled to invoice Owner and to receive full payment for all services performed or furnished in accordance with this Agreement and all justified reimbursable expenses incurred by the Consultant through the effective date of termination action. Owner agrees to hold Consultant harmless for errors or omissions in documents that are incomplete as a result of the termination action under this clause.

D16 TRADE RESTRICTION CERTIFICATION
49 USC § 50104
49 CFR part 30
B16.1 APPLICAB ILITY

SOLICITATION CLAUSE

TRADE RESTRICTION CERTIFICATION
By submission of an offer, the Offeror certifies that with respect to this solicitation and any resultant contract, the Offeror –
1) is not owned or controlled by one or more citizens of a foreign country included in the list of countries that discriminate against U.S. firms as published by the Office of the United States Trade Representative (USTR);
Docusign Envelope ID: 685B62C1-638E-4C55-A634-D026FBBDB895

In Process
Consultant Contract Architects or Engineers w/employees On Demand Page 25 of 25 2) has not knowingly entered into any contract or subcontract for this project with a person that is a citizen or national of a foreign country included on the list of countries that discriminate against U.S. firms as published by the USTR; and
3) has not entered into any subcontract for any product to be used on the Federal project that is produced in a foreign country included on the list of countries that discriminate against U.S. firms published by the USTR.

This certification concerns a matter within the jurisdiction of an agency of the United States of America and the making of a false, fictitious, or fraudulent certification may render the maker subject to prosecution under Title 18 USC Section 1001.

The Offeror/Contractor must provide immediate written notice to the Owner if the Offeror/Contractor learns that its certification or that of a subcontractor was erroneous when submitted or has become erroneous by reason of changed circumstances. The Contractor must require subcontractors provide immediate written notice to the Contractor if at any time it learns that its certification was erroneous by reason of changed circumstances.

Unless the restrictions of this clause are waived by the Secretary of Transportation in accordance with 49 CFR 30.17, no contract shall be awarded to an Offeror or subcontractor:
1) who is owned or controlled by one or more citizens or nationals of a foreign country included on the list of countries that discriminate against U.S. firms published by the USTR or 2) whose subcontractors are owned or controlled by one or more citizens or nationals of a foreign country on such USTR list or
3) who incorporates in the public works project any product of a foreign country on such USTR list.

Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render, in good faith, the certification required by this provision. The knowledge and information of a contractor is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.

The Offeror agrees that, if awarded a contract resulting from this solicitation, it will incorporate this provision for certification without modification in all lower tier subcontracts. The Contractor may rely on the certification of a prospective subcontractor that it is not a firm from a foreign country included on the list of countries that discriminate against U.S. firms as published by USTR, unless the Offeror has knowledge that the certification is erroneous.

This certification is a material representation of fact upon which reliance was placed when making an award. If it is later determined that the Contractor or subcontractor knowingly rendered an erroneous certification, the Federal Aviation Administration (FAA) may direct through the Owner cancellation of the contract or subcontract for default at no cost to the Owner or the FAA.

Docusign Envelope ID: 685B62C1-638E-4C55-A634-D026FBBDB895

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, October 28, 2025
TO: CITY COUNCIL
WRITTEN BY: ADMIN ANALYST MIRANDA
RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR LINDBERG APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: RESCIND RESOLUTION NO. 238-25 AND AUTHORIZE PURCHASE OF TWO HEAVY DUTY EQUIPMENT VEHICLES WITH PAPÉ MACHINERY INC., IN TOTAL AMOUNT NOT TO EXCEED $320,000
RECOMMENDATION:

Adopt resolution rescinding Resolution No. 238-25 (CM) and authorizing the purchase through PAPE Machinery Inc., an authorized Sourcewell dealer for John Deere Construction Retail Sales, for one (1) John Deere 325G Compact Track Loader and one (1) John Deere 444G Tier Wheel Loader, in an amount not to exceed $320,000 and authorizing the City Manager to execute the purchase order, including any extensions or amendments in order to implement this purchase. (CEQA STATUS: CATEGORICALLY EXEMPT PURSUANT TO CEQA GUIDELINES SECTION 15301)
BACKGROUND:

The Water Services Division is responsible for the construction and maintenance of the City’s water distribution system; this includes ongoing water main line replacement projects, road resurfacing repairs, hydrant knock down repairs, and other related projects.

The Water Services Division replaces its heavy-duty equipment vehicles that have reached the end of their useful life, not doing so would result in more costly repairs and maintenance for continued operation.

Keeping the Division’s equipment in good working condition allows the City to continue to provide reliable

2 equipment to staff in order to continue without unexpected equipment breakdown and in turn maintain operations moving forward with all its planned construction and maintenance projects.

DISCUSSION:

On September 9, 2025, the City Council adopted Resolution No. 238-25 (CM) for the purchase of two new heavy-duty vehicles through vendor John Deere Construction Retail Sales. Staff is requesting that Resolution be rescinded, due to a clerical error the approval was awarded to the wrong vendor. The correct approval should be awarded to PAPE Machinery Inc.

The Water Services Division obtained quotes for this purchase with PAPE Machinery Inc. under Sourcewell Contract #011723-JDC, based on the California Multiple Award Schedule (CMAS) state purchasing contract and Sourcewell government competitive bidding pricing.

The pricing quote for the purchase of two new heavy-duty equipment vehicles is summarized below:

John Deere 325G Compact Track Loader ………. $ 91,207.56
John Deere 444G Tier Wheel Loader ……………… $192,952.89
Total Purchase Order (plus tax and freight) $284,160.45 Equipment Accessories $20,000.00
Allowance for unprecedented cost increase $15,839.55
Total Purchase Order to be Requested $320,000.00
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

No additional California Environmental Quality Act (CEQA) review is required. On January 16, 2024, the City Council declared the purchase of water construction materials, rental equipment and service as exempt in accordance with CEQA Guidelines Section 15301(b), in that this project is eligible for a Class 1 “existing facilities of publicly owned utilities used to provide electric power, natural gas, sewage, or other public utility services” categorial exemption. Further, increasing the funds for water construction materials, rental equipment, and services is an administrative activity that would not have the potential to either (1) cause a direct physical change in the environment, or (2) cause a reasonably foreseeable indirect physical change in environment. Therefore, no CEQA action is required at this time.

STRATEGIC PLAN:

This purchase is consistent with strategic plan goal:

Infrastructure & Environment

3 FINANCIAL IMPACT:

There is sufficient budget available in the Capital Improvement Plan budget code 0720-913-7805-15249 ALTERNATIVE ACTION:

No reasonable alternatives are currently known. The council could elect not to approve the purchase, and the cost of operating and maintaining the existing vehicles will continue to rise.

ATTACHMENTS AND/OR REFERENCES (IF ANY):
1) PAPE Machinery Inc. Quote for John Deere 325G Compact Track Loader 2) PAPE Machinery Inc. Quote for John Deere 444G Tier Wheel Loader 3) PAPE Authorized Sourcewell Dealer for John Deere Construction Retail Sales Letter 4) Contract between Sourcewell and John Deere

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Public
July 7, 2023
Pape Machinery, Inc.
355 Goodpasture Island Rd.

Eugene, OR 97401
RE: Pape Machinery, Inc. as authorized Sourcewell dealer for John Deere Construction Retail Sales To Whom It May Concern:

This letter is to confirm that Pape Machinery, Inc. and its sales organization supporting the sale of Construction & Forestry equipment for John Deere has completed the John Deere Government Sales Contract Training. As a result, all Pape Machinery, Inc. dealer locations are authorized to quote and sell on the John Deere Construction Retail Sales Sourcewell contract for Heavy Construction Equipment, contract #011723-JDC.

If you have any questions, please feel free to contact me.

Regards,
Kent Hoffman
Manager, Federal and State Accounts
John Deere Construction & Forestry Division
1300 River Drive, Moline, IL 61265
Phone: 309-765-0282 Mobile : 309-230-4650
E-mail: [email protected]
Kent J. Hoffman
Manager, Federal & State Acccounts
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Reso No. (CM)
Reference: Reso No. 238-25 (CM) (Rescind)
Meeting Date: 102825 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE RESCINDING RESOLUTION NO. 238-25 AND
AUTHORIZING THE PURCHASE OF TWO (2) HEAVY DUTY
EQUIPMENT VEHICLES 1) JOHN DEERE 325G COMPACT TRACK
LOADER AND 2) JOHN DEERE 444G TIER WHEEL LOADER, FROM
PAPÉ MACHINERY, INC., AN AUTHORIZED SOURCEWELL DEALER,
IN AN AMOUNT NOT TO EXCEED $320,000; AND AUTHORIZING AND

DIRECTING CITY MANAGER TO EXECUTE PURCHASE ORDER WITH
PAPÉ MACHINERY INC. INCLUDING ANY EXTENSIONS OR

AMENDMENTS THEREOF IN ORDER TO IMPLEMENT THIS

PURCHASE
WHEREAS, bidding requirements and a reference to procedures for the purchase of supplies, equipment, and non-personal contractual services and the sale of personal property are set forth in Chapter 3-5 of the Watsonville Municipal Code; and WHEREAS, in August 20, 2024, written quotes were requested from PAPE Machinery, Inc., a Sourcewell contracted vendor under contract #011723-JDC based on the California Multipole Award Schedule (CMAS) state purchasing contract and Sourcewell government competitive bidding pricing; and
WHEREAS, PAPÉ Machinery, Inc., provided quotes, in the amount of $284,160.45 including tax, freight and delivery, plus an additional $20,000 for equipment accessories and $15,839.55 for unforeseen cost increases for a total amount of $320,000, which was reviewed and recommended by staff for purchase.

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

1. Adopting a Resolution approving the purchase of two new heavy duty vehicles, 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.

Reso No. (CM)
Reference: Reso No. 238-25 (CM) (Rescind)
Meeting Date: 102825
2 2. That Resolution No. 238-25 (CM) adopted on September 9, 2025 for the purchase of two new heavy duty vehicles through vendor John Deere Construction Retail Sales is hereby rescinded.

3. The purchase of two (2) new heavy duty equipment vehicles from PAPÉ Machinery Inc., an authorized Sourcewell dealer for 1) John Deere 325G Compact Track Loader and 2) John Deere 444G Tier Wheel Loader, in an amount not to exceed $320,000, which is the quoted cost of the vehicles, including tax and freight cost plus an allowance of $15,839.55 for unforeseen rise in costs and $20,000 for equipment accessories, is hereby authorized.

4. That the City Manager is hereby authorized and directed to execute said Purchase Order for and on behalf of the City of Watsonville, including any extensions or amendments thereof in order to implement this purchase. ********************************

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, October 28, 2025
TO: CITY COUNCIL
WRITTEN BY: PRINCIPAL MANAGEMENT ANALYST ZAVALA
RECOMMENDED BY: CITY MANAGER VIDES
APPROVED BY: CITY MANAGER VIDES
SUBJECT: LEASE AGREEMENT BETWEEN THE CITY OF WATSONVILLE AND MONTEREY BAY AIR RESOURCES DISTRICT FOR 275 MAIN ST., SUITE 104
RECOMMENDATION:

It is recommended that the City Council adopt a resolution authorizing the City Manager to execute a Lease, and any amendments of a non-substantive nature, with the Monterey Bay Air Resources District for office space located at 275 Main Street, Suite 104, in the Civic Plaza; and finding the leasing of the facility exempt from review of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301 (Class 1)-Existing Facility.

BACKGROUND:

Monterey Bay Air Resources District (MBARD) currently has an active good-standing lease with the City for the office space located at 275 Main St., Suite 104, in the Civic Plaza. Their current lease has been active since November 1, 2021, and is set to expire on October 30, 2025, following MBARD's exercise of its 2-year lease extension in 2023. Their current base rent is $1,369.10 per month plus an additional monthly fee of $296.70 for janitorial services twice per week. MBARD would like to enter into a new lease for the continued use of the space.

DISCUSSION:

The Civic Plaza Building was designed and constructed with condominium units because the City planned to lease some of the condominium spaces within the building to help offset the building's costs. Currently, all but one of those condominium spaces is rented.

2 This lease is for unit 104, which comprises approximately 741 square feet of office space on the ground level. No tenant improvements are required. The current market rate for the unit is $1,403.21, and the current cost of the janitorial services provided is expected to increase to $305/month.

The key terms of the proposed Lease are as follows:

1. Term: Initial two-year term beginning November 1, 2025, and ending October 31, 2027, with one option to extend for one additional two-year term at the then market rate.

2. Rent: Base rent of $1,403.21 per month plus $305 per month for janitorial services. Base rent shall be adjusted annually based on the amount equal to the change in the Northern California (San Francisco-Oakland – Hayward) consumer price index, not to exceed 3% in any one year.

3. A security deposit of $2,082.00 will be transferred from the existing lease and maintained as a security deposit.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

The approval of the lease is categorically exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301(Class 1)-Existing Facility as this approval will be leasing an existing facility, involving negligible or no expansion of existing or former use.

STRATEGIC PLAN:

Economic Development
Fiscal Health
FINANCIAL IMPACT:

The City’s General Fund will receive rent revenue of $33,677.04, plus annual adjustments based on the Consumer Price Index (CPI), during the initial term of the lease.

ALTERNATIVE ACTION:

The City Council may choose not to authorize the lease renewal.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None

1 Reso No. ______ (CM)
Meeting Date: 102825 SWZ ______ TV ______ CM ______
RESOLUTION NO. ___________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

APPROVING A TWO-YEAR LEASE AGREEMENT WITH ONE TWO-YEAR

EXTENSION OPTION BETWEEN THE CITY OF WATSONVILLE AND THE

MONTEREY BAY AIR RESOURCES DISTRICT FOR OFFICE SPACE
LOCATED AT 275 MAIN STREET, SUITE 104, WATSONVILLE, CALIFORNIA

AND AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE

SAME AND ANY AMENDMENTS THERETO OF A NON-SUBSTANTIVE
NATURE; AND FINDING PROJECT EXEMPT FROM REVIEW UNDER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINES SECTION 15301

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

1. The approval of the lease is categorically exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301(Class 1)-Existing Facility as this approval will be leasing an existing facility, involving negligible or no expansion of existing or former use.

2. That the two-year Lease Agreement between the City of Watsonville and Monterey Bay Air Resources District for office space located at 275 main street, suite 104, Watsonville, California, a copy of which Lease Agreement is attached hereto and incorporated herein by this reference, is fair and equitable and is hereby ratified and approved.

3. That the City Manager be and is hereby authorized and directed to execute said Lease Agreement for the original term, and if properly exercised, the one (1) two-year option term, and any amendments thereto of a non-substantive nature in a form approved by the City Attorney.
******************************************

Lease Agreement/ MBARD Page 1 of 27
Rev.: 10-08-2025

COMMERCIAL PROPERTY LEASE AGREEMENT

BY AND BETWEEN

CITY OF WATSONVILLE, CALIFORNIA
AND

MONTEREY BAY AIR RESOURCES DISTRICT
This lease agreement (“Lease”) is dated _____________________________ and is by and between the City of Watsonville, California, a chartered California municipal corporation (“City”) and Monterey Bay Air Resources District (“Lessee”). City and Lessee may be referred to individually as a “Party” or collectively as the “Parties” or the “Parties to this Lease.” The City Manager serves as Contract Administrator for this Lease on behalf of the City Council.

RECITALS:

A. City owns the property at 275 Main Street, Suite 104, Watsonville, California, consisting of approximately seven hundred and forty-one (741) square feet of office space.

B. City wishes to lease the Property to Lessee.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, stipulated and agreed, Lessee and City mutually agree as follows:

AGREEMENTS:

LEASE PROVISIONS

1. PREMISES; BUILDING AND PROJECT.

1.1 General. City hereby leases to Lessee, and Lessee hires from City, certain real property located in the City of Watsonville, County of Santa Cruz, State of California, commonly known as 275 Main Street, Suite 104, Watsonville, California, consisting of approximately 741 square feet of office space (the “Premises”) within the Property commonly referred to as the Watsonville Civic Plaza (the “Building”), located on an approximately 1.25 acre parcel (collectively, including the Building, the “Project”), all as more particularly described or identified in Exhibit A attached hereto and incorporated herein by reference. The Project excludes, and Lessee is the sole owner of, the items identified on the Inventory of Fixtures set forth in Exhibit B attached hereto and incorporated herein by reference.

1.2 Pro Rata Share. Lessee’s pro rata share (“Pro Rata Share”) which as of the Commencement Date equates to $305 per month, is the amount agreed upon by the parties to be Lessee’s share of the Common Area Expenses. These expenses may be reassessed and updated by the Lessee from time to time.

2. TERM; COMMENCEMENT DATE.

2.1 Lease Term. The term of this Lease shall be for Two (2) years (the “Initial Term”), commencing at 12:01 am on November 1, 2025 (“Commencement Date”) and ending on Docusign Envelope ID: 3B8497E2-96C5-45AC-911C-7C658CF6E98C

Lease Agreement/ MBARD Page 2 of 27
Rev.: 10-08-2025
October 31, 2027. Lessee shall, at the expiration of the term of this lease, or upon its earlier termination, surrender the Premises in as good condition as it is now at the date of this lease, reasonable wear and tear excepted. City shall have the right, upon the termination of the term or upon a breach, to enter the Premises and take possession of it.

2.2 Option to Extend Lease Term. Lessee is granted the option to extend the term of this Lease (the “Renewal Option”) upon and subject to all of the provisions contained herein, except for Base Rent and the Renewal Option, for one (1) two (2) year period (the “Extended Term”) following expiration of the Initial Term. The Renewal Option may be exercised only by giving notice of exercise of the Renewal Option (“Option Notice”) to City at least six (6) months before the expiration of the Initial Term. If Lessee is in default beyond the period of notice and opportunity to cure provided in Section 16.1 of this Lease on the date of giving the Option Notice, the Option Notice will be totally ineffective. If Tenant is in default beyond the period of notice and opportunity to cure provided in Section 16.1 of this Lease on the date the Extended Term is to commence, the Extended Term will not commence and this Lease will expire at the end of the Initial Term as it may have previously been extended.

3. RENT.

3.1 Base Rent. Lessee shall pay base rent (“Base Rent”) in the amount of One thousand four hundred three dollars and twenty-one cents ($1,403.21) per month. All rent, including Base Rent, shall be paid in lawful money of the United States of America without deduction or offset. Base Rent shall be payable on the first day of each and every month commencing on the Commencement Date, at a place (or places) as may be designated in writing from time to time by City. Base rent shall be adjusted annually, beginning the second year of the Initial Term, using as the basis for calculating the adjustment, the rate of April to April change in the Consumer Price Index (CPI) for All Urban Consumers San Francisco-Oakland-Hayward Metropolitan Area, not to exceed three percent (3%) per year.

3.1.1 Late Charge. Lessee acknowledges late payment by Lessee to City of rent will cause City to incur costs not contemplated by this Lease, the exact amount of such costs being extremely difficult and impracticable to fix. Such costs include, without limitation, processing, accounting and late charges that may be imposed on City. Therefore, if City does not receive any installment of rent due from Lessee within ten (10) days after the date such rent is due, Lessee shall pay to City an additional sum of ten percent (10%) of the overdue rent as a late charge. The parties agree this late charge represents a fair and reasonable estimate of the costs City will incur by reason of late payment by Lessee. Acceptance of any late charge shall not constitute a waiver of Lessee’s default with respect to the overdue amount, nor prevent City from exercising any of the other rights and remedies available to City.

3.1.2 Rent. The term “Rent” as used in this Lease shall mean Base Rent and any other amounts owing from Lessee to the City pursuant to this Lease.

3.2 Extended Term Base Rent. Base Rent of the Premises payable during the Extended Term as of the Extended Term commencement date shall be equal to the Market Rate (as hereinafter defined) adjusted annually, beginning the second year of the Extended Term, using as the basis for calculating the adjustment, the rate of April to April change in the Consumer Price Index (CPI) for All Urban Consumers San Francisco-Oakland-Hayward Docusign Envelope ID: 3B8497E2-96C5-45AC-911C-7C658CF6E98C

Lease Agreement/ MBARD Page 3 of 27
Rev.: 10-08-2025
Metropolitan Area, not to exceed three percent (3%) per year. City shall, in response to and within thirty (30) days of City's receipt of Lessee's notice of its intent to exercise the Option, give Lessee written notice of the applicable Market Rate, as reasonably determined in good faith by City.

3.2.1 The term “Market Rate” shall mean, the then prevailing annual rental rate per square foot of rentable area for space in comparable buildings in the City of Watsonville which has been built out for occupancy, comparable in area and location and quality to the space for which such rental rate is being determined (to the extent that quoted rental rates in the building, as applicable, vary with regard to location), being leased for a duration comparable to the Extended Term for terms commencing on or about the Extended Term commencement date for non-sublease, non-encumbered, non-equity space. The determination of the Market Rate shall take into consideration rental concessions and abatements, the “as is” condition of the Premises, operating expenses and tax expenses, other adjustments to base rental and other comparable factors. Notwithstanding anything to the contrary contained herein, in no event shall the Market Rent as determined hereunder be less than the Base Rent owing immediately prior to the commencement of the Extended Term.

3.2.2 Not later than sixty (60) days after City's notice to Lessee of the Market Rate, Lessee shall give notice to City of Lessee's election to: (i) accept City's determination of Market Rate; or (ii) to have the Market Rate determined by the “arbitration” procedure set forth in subsection 3.2.3 below. If Lessee fails to notify City within said sixty (60) day period of Lessee's election, Lessee shall be deemed to have accepted City's determination of the then Market Rate and to have waived its rights to an “arbitration” thereof. Lessee's notice under either subsection (i) or (ii) above shall be deemed Lessee's exercise of the Option.

3.2.3 If Lessee has timely elected to have an “arbitration” of the amount(s) and component(s) of the then Market Rate, then the following shall be utilized to make and implement such election: Upon the valid exercise of Lessee's election to have an “arbitration” of the then Market Rate, then not later than ten (10) days after Lessee's notice to have such an “arbitration” of the then Market Rate, City and Lessee shall each designate, by written notice give to the other party setting forth the designated person's address, a qualified appraiser who shall have had at least ten years’ experience relevant to the commercial retail space in the Watsonville market area (the “Arbitrators”). It is expected that the Arbitrators will familiarize themselves with this Lease, the exhibits and riders hereto and such other documents as are deemed relevant by the Arbitrators or either or both of them. Each of the Arbitrators shall submit to City and Lessee, within sixty (60) days after his or her appointment, his or her written determination of the then Market Rate with respect to the Premises. If the lower of said two determinations is not less than ninety-five percent (95%) of the other determination, then the average of the two determinations shall be deemed to be the then Market Rate and conclusive and binding as between the parties. If such not be the case, then the Arbitrators shall mutually select a third qualified and impartial Appraiser who shall also have had at least ten years' experience relevant to the commercial retail space in the Watsonville market area (the “Third Arbitrator”). The Third Arbitrator shall, within sixty (60) days of his appointment, deliver his written determination to City and Lessee of which of the Arbitrator's Market Rate determinations is most accurate, and that determination shall be the deemed Market Rate which shall be conclusive and binding as between the parties. Each party shall be responsible for all fees and costs incurred in the determination of Market Rate by their own Arbitrator, and the parties shall Docusign Envelope ID: 3B8497E2-96C5-45AC-911C-7C658CF6E98C

Lease Agreement/ MBARD Page 4 of 27
Rev.: 10-08-2025
share equally the fees and costs incurred in the determination of Market Rate by the Third Arbitrator. If Lessee becomes obligated to pay Rent with respect to the Extended Term prior to when the applicable Market Rate has been determined in accordance with the foregoing, Lessee shall commence paying Rent utilizing City's determination of the then Market Rate. Following determination of the applicable Market Rate in accordance with the foregoing, City and Lessee shall, by a cash payment within thirty (30) days of the date of such determination, adjust between themselves the difference, if any, between the Rent paid by Lessee pursuant to the foregoing sentence and the Rent actually owed by Lessee pursuant to the terms of this Lease for that time period.

4. SECURITY DEPOSIT.

Lessee has tendered to City an amount of Two Thousand Eighty Two Dollars ($2,082.00) as a security deposit. City confirms that it is not currently holding any security deposit from Lessee under this Lease or any prior lease agreements. City may use these funds as are reasonably necessary to remedy any Lessee breach(s) or default(s) under this Lease, including without limitation in the payment of rent, to repair damages caused by Lessee, or expenses incurred to clean the Premises upon termination of tenancy. If any portion of the security deposit is used towards rent or damages at City’s sole discretion, Lessee agrees to reinstate said total security deposit upon receipt of five (5) days written notice. Any remaining balance of the security deposit shall be returned by City to Lessee at such time after termination of this Lease that all of Lessee’s obligations under this Lease have been fulfilled, reduced by such amounts as may be required by City to remedy defaults on the part of Lessee in the payment of Rent or other obligations of Lessee under this Lease, to repair damage to the Premises, Building, or Project caused by Lessee and to clean the Premises. City may use and co-mingle the security deposit with other funds of City. Lessee hereby waives the provisions of the California Civil Code section 1950.7, and all other provisions of any laws, now or hereinafter in force, which restricts the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits.

5. DUTIES OF LESSEE.

5.1 Lessee shall not use the image of the Premises or Project, the name of City or any other identifying sign or symbol associated with the Premises or Project or City to undertake any action or representation than those specifically assigned to Lessee as a duty under this Lease.

5.2 Lessee shall protect and maintain the Premises. Lessee shall assume the responsibility for the guarding and safekeeping of all personal property located at the Premises.

5.3 Lessee shall not make any interior renovation or remodeling or make any major changes to the Premises or remove any objects, which are not the property of Lessee without the prior written consent of the City Manager or her designee.

6. USE OF PREMISES/COMMON AREAS.

6.1 Permitted Uses. Lessee shall use the Premises solely as a retail use and for no other purpose. Without limiting the foregoing, Lessee agrees not to use or permit use of the Docusign Envelope ID: 3B8497E2-96C5-45AC-911C-7C658CF6E98C

Lease Agreement/ MBARD Page 5 of 27
Rev.: 10-08-2025
Premises for any unlawful purpose, and not to commit or permit any waste or nuisance in or about the Premises. Lessee will not use Premises in a manner that increases the risk of fire, cost of fire insurance or improvements thereon. No unreasonable sign or placard shall be painted, inscribed or placed in or on or about the Premises or Project; and no tree or shrub thereon (if any) shall be destroyed or removed or other waste committed of said Premises or Project. No bicycles, motorcycles, automobiles or other mechanical means of transportation shall be placed anywhere on the Premises or Project except for areas (if any) identified by the City from time to time. No repair, storage, overhaul or modification of any motor vehicle shall take place on or about the Premises or Project. Lessee, at his/her expense, shall keep the Premises in as good condition as it was at the beginning of the term hereof, reasonable wear and tear excepted.

6.2 Prohibited Uses. Lessee shall not use Premises for any purpose not expressly permitted hereunder. Lessee shall not (i) create, cause, maintain or permit any nuisance or waste in, on or about the Premises or permit or allow the Premises to be used for any unlawful or immoral purpose, and (ii) do or permit to be done anything in any manner which unreasonably disturbs the users of the Project or the occupants of neighboring property. Specifically, and without limiting the above, Lessee agrees not to cause any unreasonable odors, noise, vibration, power emissions or other item to emanate from the Premises. No materials or articles of any nature shall be stored outside upon any portion of the Premises.

6.3 Condition, Use of Premises. At no cost to Lessee, City either has, or shall, supply, furnish, install, finish and deliver in warm vanilla shell, the Premises, in full compliance with all applicable laws (including, without limitation, the ADA), regulations and building codes applicable to new construction, disregarding variances and grandfathered/grandmothered rights, all at City’s sole cost and expense, and which shall comprise and is defined as the “Base Building”.

6.4 Use of Adjacent Parking Lot. Lessee and its customers shall have the right to use the unreserved, unassigned parking spaces located in the City parking lot as shown on Exhibit A on a first come basis. These parking spaces are made available to all of the tenants/lessees of the Building and are part of the Project’s “Common Areas” (defined in Section 6.6 below).

6.5 Overloading. Lessee shall not do anything on the Premises that will cause damage to the Premises, the Building, or the Project. Lessee shall not suffer or allow the Premises to be used in any manner that will harm or impair the structural strength of the Building nor to suffer or allow to be installed or operated on the Premises, or the Building, any machinery or apparatus whose weight or vibration would harm or impair the structural strength of the Premises or the Building. Lessee shall not place a load upon the floor or roof of the Premises without the City’s prior written consent, which consent may be conditioned on moving by skilled licensed handlers, or which exceeds the load per square foot which such floor or roof was designed to carry. Business machines and mechanical equipment used by Lessee which cause vibration or noise that may be transmitted to the Building structure or to any leased space to such a degree as to be reasonably objectionable to the City or to any other tenants in the Building shall be placed and maintained by Lessee at its expense, in settings of cork, rubber, or spring-type vibration eliminators sufficient to eliminate such vibration or noise.

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6.6 Common Areas.

6.6.1 The term “Common Areas” shall mean and refer to all areas within the exterior boundaries of the Project which are now or hereafter made available for general use, convenience, and benefit of the City and other persons entitled to occupy space in the Project, including, without limiting the generality of the foregoing, roofs, exterior walls, structural parts of the Building and structural floor, pipes and conduits, outside lighting fixtures (if any), automobile parking areas (if any), driveways, sidewalks, landscaped and planted areas, and HVAC and plumbing systems and similar common areas, facilities, and systems. Lessee and its employees and invitees are, except as otherwise specifically provided in this Lease, authorized, empowered, and privileged to use the Common Areas in common with other persons during the Term of this Lease. City agrees to maintain and operate, or cause to be maintained and operated (except as hereinafter provided with reference to cost of maintenance), the Common Areas at all times for the benefit and use of the customers and patrons of Lessee, and of other lessees, owners, and occupants of the Project.

6.6.2 City shall keep or cause the Common Areas to be kept in a neat, clean, and orderly condition, and shall repair any damage to the facilities thereof, but all Common Area Expenses shall be charged and prorated in the manner hereinafter set forth. “Common Area Expenses” shall include, but not be limited to, all sums expended in connection with the Common Areas for all general maintenance and repairs, resurfacing, painting, restriping, cleaning, sweeping and janitorial services; maintenance and repair of sidewalks, curbs, and Project signs; sprinkler systems, planting and landscaping (if any); lighting and other utilities; directional signs; maintenance and repair of any fire protection systems, lighting systems, storm drainage systems and other utility systems outside of the Premises; all maintenance and repair costs and expenses, except as to cost of replacement of the roof, exterior walls, structural parts of the Premises and structural floor, and pipes and conduits outside the leased Premises in the Project that furnish the leased Premises with various utilities (except to the extent that the same are the obligations of the appropriate utility company or are otherwise Lessee’s obligation pursuant to Section 7.1 or other provision of this Lease), incurred by the City pursuant to Section

7.2; personnel to implement such services; real and personal property taxes and assessments on the improvements and land comprising the Project; any governmental imposition or surcharge imposed upon the City or assessed against any portion of the Common Areas; all costs and expense pertaining to any security alarm system for the lessees in the Project (if any); depreciation on maintenance and operating machinery and equipment (if owned) and rental paid for such machinery and equipment (if rented); and adequate public liability and property damage insurance on the Common Areas. In addition, the Common Area Expenses shall include a management fee of ten percent (10%) of the total of all other Common Area Expenses, adjusted from time to time as provided herein. The City may cause any or all of those services to be provided by an independent contractor or contractors.

6.6.3 From and after the Commencement Date, and throughout the term hereof, Lessee shall pay to the City, on the first day of each calendar month, the amount of $1,200 per month, as the an amount agreed upon by the parties to be Lessee’s share of the Common Area Expenses. These expenses may be reassessed and updated by the Lessee from time to time.

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6.6.4 Failure of Lessee to pay any of the charges as in this Section 6.6 required to be paid shall constitute a default under the terms hereof in like manner as failure to pay Base Rent when due.

6.6.5 The City shall at all times have the right and privilege of determining the nature and extent of the Common Areas, and of making such changes therein and thereto from time to time which in its sole discretion it deems to be desirable and in the best interest of all persons using the Common Areas, including without limitation the location and relocation of driveways, entrances, exits, automobile parking spaces (if any), installation of prohibited areas, landscaped areas, utilities, and all other facilities thereof.

6.6.6 Nothing contained herein shall be deemed to create any liability upon the City for any damage to motor vehicles of customers or employees or for loss of property from within such motor vehicles.

6.6.7 The City shall have the right to establish, and from time to time change, alter, and amend, and to enforce against Lessee and the other users of the Common Areas such reasonable rules and regulations (including the exclusion of employees’ parking therefrom) as the City in its sole discretion may deem necessary or advisable for the proper and efficient operation and maintenance of the Common Areas. The rules and regulations herein provided may include, without limitation, the hours during which the Common Areas shall be open for use.

6.6.8 City shall retain the sole and absolute discretion in the modification of the Common Areas, which may include the rearrangement, increase or decrease of the areas, and the manner in which the areas are utilized. City shall also have the right at any time and from time to time during the term hereof to exclude and restrain any person from use or occupancy thereof, excepting, however, bona fide customers, patrons, and service suppliers of Lessee, and other tenants of the City who make use of the Common Areas fully in accordance with the rules and regulations established by the City from time to time with respect thereto. The rights of Lessee hereunder in and to the Common Areas shall at all times be subject to the rights of the City, the other tenants of the Project to use the same in common with Lessee, and it shall be the duty of Lessee to keep all of the Common Areas free and clear of any obstructions created or permitted by Lessee or resulting from Lessee’s operation and permit the use of the Common Areas only for normal parking, ingress and egress by said customers, patrons, and service suppliers to and from the Building.

6.6.9 If in the sole discretion of the City unauthorized persons are using any of the Common Areas by reason of the presence of Lessee in the Premises, Lessee, upon demand of the City, shall enforce such rights against all such unauthorized persons by appropriate proceedings. Nothing herein shall affect the rights of the City at any time to remove any such unauthorized persons from said areas or to restrain the use of any of said areas by unauthorized persons.

7. MAINTENANCE AND REPAIRS.

7.1 Lessee’s Obligations. Lessee agrees at all times during the term hereof, at its own expense, to repair, replace and maintain in good and tenantable condition the Premises and every Docusign Envelope ID: 3B8497E2-96C5-45AC-911C-7C658CF6E98C

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part thereof (except that portion of the Premises to be maintained by the City as hereinafter provided) and including, without limitation, the utility meters, pipes and conduits, all fixtures, air conditioning equipment and heating equipment, if any, exclusively serving the Premises and other equipment therein, including any equipment installed by Lessee which is part of said system, the storefront or storefronts, all signs, locks and closing devices, and all window sash, casement or frames, door and door frames, floor coverings, including carpeting, terrazzo or other special flooring, and all such items of repair, maintenance, allocation and improvement or reconstruction as may at any time or from time to time be required by a governmental agency having jurisdiction thereof. Tenant will not place or suffer to be placed or maintained on any exterior door, roof, wall or window of the building within which the Leased Premises are located any sign, awning or canopy, or advertising matter or other thing of any kind, and will not place or maintain or permit, or suffer to be placed or maintained, any decoration, lettering or advertising matter on the glass of any window or door of the said building within which the Leased Premises are located without first obtaining Landlord's written approval. In no event shall any: (a) neon, flashing or moving sign(s), or (b) sign( s) which shall interfere with the visibility of any sign, awning, canopy, advertising matter, or decoration of any kind of any other business or occupant of the Beach Street Garage of which the Leased Premises are a part, be permitted hereunder. Tenant further agrees to maintain any such sign, awning, canopy, decoration, lettering, advertising matter or other thing as may be approved in good condition and repair at all times. Lessee shall contract with a qualified service company for the monthly maintenance of the air conditioning equipment or heating, ventilating and air conditioning equipment, as the case may be, exclusively serving the Premises, with a copy of the service contract to be furnished to the City upon execution of this Lease and a copy of any subsequent contracts to be furnished from time to time during the term of this Lease provided that, at the City’s sole election, the City may so contract directly with a qualified service company, and Lessee shall promptly reimburse the City for the full cost of same.

Maintenance of all glass, both exterior and interior, is the sole responsibility of Lessee, and any glass broken shall be promptly replaced by Lessee with glass of the same kind, size and quality.

Upon surrender of the Premises, Lessee shall deliver the Premises to the City in good order, condition and state of repair, but shall not be responsible for damages resulting from ordinary wear and tear.

7.2 City Obligations. Subject to the foregoing provisions and to the reimbursement by Lessee described in Section 6.6, the City shall keep and maintain in good and tenantable condition and repair the roof, exterior walls, structural parts of the Premises and structural floor, and pipes and conduits outside the Premises that furnish the Premises with various utilities (except to the extent that the same are the obligations of the appropriate utility company or are otherwise Lessee’s obligation pursuant to Section 7.1 or other provision of this Lease); provided, however, that the City shall not be required to make repairs necessitated by reason of the negligence of Lessee or anyone claiming under Lessee, by reason of failure of Lessee to perform or observe any conditions or agreements of this Lease, or by reason of alterations, additions, or improvements made by Lessee or anyone claiming under Lessee. As used in this Section, “exterior walls” shall not include storefronts, plate glass, window cases or window frames, doors or door frames, security grilles or similar enclosures. It is understood and agreed that the City shall be under no obligation to make any repairs, alterations, renewals, replacements or improvements to and upon the Premises or the mechanical equipment exclusively serving the Premises at any time except as this Lease expressly provides. Anything to the contrary contained in this Lease notwithstanding, the City shall not in any way be liable to Lessee for failure to make repairs as herein specifically required of it unless Lessee has previously notified the City, Docusign Envelope ID: 3B8497E2-96C5-45AC-911C-7C658CF6E98C

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in writing, of the need for such repairs and the City has failed to commence and complete said repairs within a reasonable period of time following receipt of Lessee’s written notification.

7.3 Lessee’s Failure to Maintain. If Lessee refuses or neglects to make repairs or maintain the Premises, or any part thereof, in a manner reasonably satisfactory to the City, the City shall have the right, upon giving Lessee reasonable written notice of its election to do so, to make such repairs or perform such maintenance on behalf of and for the account of Lessee. In such event the cost of such work shall be paid by Lessee as additional rent promptly upon receipt of an invoice therefor. In addition, the City shall include a management fee on the work that was completed by the City on behalf of the Lessee, in the amount of fifteen percent (15%) that may be adjusted from time to time as provided herein.

7.4 Waiver of Legal Rights. Lessee waives the benefits of any law existing now or at any time during the term of this Lease and any extension thereof or thereafter giving Lessee rights or remedies as a result of the physical condition of the Premises, the Building, or Project and, without limitation, Sections 1932, 1933, 1941, 1941.2, 1942 and 1942.1 of the Civil Code of California and all right to make repairs at the expense of the City or to terminate this Lease as provided in those Civil Code sections or otherwise, except as expressly provided herein.

8. HAZARDOUS MATERIALS.

8.1 Compliance with Laws. Lessee shall not cause or permit any Hazardous Material (as defined below) to be brought upon, kept or used in or about the Premises or Project by Lessee, its agents, employees, contractors or invitees.

8.2 Termination of Lease. City shall have the right to terminate the Lease in City’s sole and absolute discretion in the event that (i) any anticipated use of the Premises by Lessee involves the generation or storage, use, treatment, disposal or release of Hazardous Material in a manner or for a purpose prohibited or regulated by any governmental agency, authority or Hazardous Materials laws; (ii) Lessee has been required by any lender or governmental authority to take remedial action in connection with Hazardous Material contaminating the Premises, if the contamination resulted from Lessee’s action or use of the Premises; or (iii) Lessee is subject to an enforcement order issued by any governmental authority in connection with the release, use, disposal or storage of a Hazardous Material on the Premises.

8.3 Assignment and Subletting. If (i) any anticipated use of the Premises by any proposed assignee or sublessee involves the generation or storage, use, treatment or disposal or release of Hazardous Material in a manner or for any purpose, (ii) the proposed assignee or sublessees has been required by any prior landlord, lender or governmental authority to take remedial action in connection with Hazardous Material contaminating a property, if the contamination resulted from such party’s action or use of the property in question, or (iii) the proposed assignee or sublessee is subject to an enforcement order issued by any governmental authority in connection with the release, use, disposal or storage of a Hazardous Material, then it shall not be unreasonable for City to withhold its consent to an assignment or subletting to such proposed assignee or sublessee.

8.4 Hazardous Materials Defined. The term “Hazardous Material(s)” shall mean any toxic or hazardous substance, material or waste or any pollutant or contaminant or infectious or Docusign Envelope ID: 3B8497E2-96C5-45AC-911C-7C658CF6E98C

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radioactive material, including but not limited to, those substances, materials or wastes regulated now or in the future under any of the following statutes or regulations and any and all of those substances included within the definitions of “hazardous substances,” “hazardous waste,” “hazardous chemical substance or mixture,” “imminently hazardous chemical substance or mixture,” “ toxic substances,” “hazardous air pollutant,” “toxic pollutant” or “solid waste” in the (a) “CERCLA” or “Superfund” as amended by SARA, 42 U.S.C. Sec. 9601 et seq., (b) RCRA, 42 U.S.C. Sec. 6901 et seq., (c) CWA., 33 U.S.C. Sec. 1251 et seq., (d) CAA, 42 U.S.C. 78401 et seq., (e) TSCA, 15 U.S.C. Sec. 2601 et seq., (f) The Refuse Act of 1899, 33 U.S.C. Sec. 407, (g) OSHA, 29 U.S.C. 651 et seq. (h) Hazardous Materials Transportation Act, 49 U.S.C. Sec. 1801 et seq., (i) USDOT Table (40 CFR Part 302 and amendments) or the EPA Table (40 CFR Part 302 and amendments), (j) California Superfund, Cal. Health & Safety Code Sec. 25300 et seq., (k) Cal. Hazardous Waste Control Act, Cal. Health & Safety Code Section 25100 et seq., (l) Porter-Cologne Act, Cal. Water Code Sec. 13000 et seq., (m) Hazardous Waste Disposal Land Use Law, Cal. Health & Safety Code Sec. 25220 et seq., (n) “Proposition 65,” Cal. Health and Safety Code Sec. 25249.5 et seq., (o) Hazardous Substances Underground Storage Tank Law, Cal. Health & Safety Code Sec. 25280 et seq., (p) California Hazardous Substance Act, Cal.

Health & Safety Code Sec. 28740 et seq., (q) Air Resources Law, Cal. Health & Safety Code Sec. 39000 et seq., (r) Hazardous Materials Release Response Plans and Inventory, Cal. Health & Safety Code Secs. 25500-25541, (s) TCPA, Cal. Health and Safety Code Secs. 25208 et seq., and (t) regulations promulgated pursuant to said laws or any replacement thereof, or as similar terms are defined in the federal, state and local laws, statutes, regulations, orders or rules.

Hazardous Materials shall also mean any and all other substances, materials and wastes which are, or in the future become regulated under applicable local, state or federal law for the protection of health or the environment, or which are classified as hazardous or toxic substances, materials or wastes, pollutants or contaminants, as defined, listed or regulated by any federal, state or local law, regulation or order or by common law decision, including, without limitation, (i) trichloroethylene, tetracholoethylene, perchloroethylene and other chlorinated solvents, (ii) any petroleum products or fractions thereof, (iii) asbestos, (iv) polychlorinated biphenyls, (v) flammable explosives, (vi) urea formaldehyde, and (vii) radioactive materials and waste.

8.5 City’s Right to Perform Tests. At any time prior to the expiration of the Lease Term, City shall have the right to enter upon the Premises in order to conduct tests of water and soil and to deliver to Lessee the results of such tests to demonstrate that levels of any Hazardous Materials in excess of permissible levels has occurred as a result of Lessee’s use of the Premises.

Lessee shall be solely responsible for and shall indemnify, protect, defend and hold City harmless from and against all claims, costs and liabilities including actual attorneys’ fees and costs arising out of or in connection with any removal, remediation, cleanup, restoration and materials required hereunder to return the Premises and any other property of whatever nature to their condition existing prior to the appearance of the Hazardous Materials. The testing shall be at Lessee’s expense if City has a reasonable basis for suspecting and confirms the presence of Hazardous Materials in the soil or surface or groundwater in on, under, or about the Premises or the Project, which has been caused by or resulted from the activities of Lessee, its agents, employees, contractors or invitees.

8.6 Hazardous Materials Indemnity. Lessee shall indemnify, defend (by counsel reasonably acceptable to City), protect and hold the City harmless from and against any and all claims, liabilities, penalties, forfeitures, losses and/or expenses, including, without limitation, diminution in value of the Premises or Project, damages for the loss or restriction on use of the Docusign Envelope ID: 3B8497E2-96C5-45AC-911C-7C658CF6E98C

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rentable or usable space or of any amenity of the Premises or Project, damages arising from any adverse impact or marketing of the Premises or Project and sums paid in settlement of claims, response costs, cleanup costs, site assessment costs, attorneys’ fees, consultant and expert fees, judgments, administrative rulings or orders, fines, costs of death of or injury to any person or damage to any property whatsoever (including, without limitation, groundwater, sewer systems and atmosphere), arising from, or caused or resulting, either prior to or during the Lease Term, in whole or in part, directly or indirectly, by the presence or discharge in, on, under or about the Premises or Project by Lessee, Lessee’s agents, employees, licensees or invitees or at Lessee’s direction, of Hazardous Material, or by Lessee’s failure to comply with any Hazardous Materials Law, whether knowingly or by strict liability. Lessee’s indemnification obligations shall include, without limitation, and whether foreseeable or unforeseeable, all costs of any required or necessary Hazardous Materials management plan, investigation, repairs, cleanup or detoxification or decontamination of the Premises or Project, and the presence and implementation of any closure, remedial action or other required plans, and shall survive the expiration of or early termination of the Lease Term. For purposes of the indemnity provided herein, any acts or omissions of Lessee or its employees, agents, customers, sublessees, assignees, contractors or subcontractors of Lessee (whether or not they are negligent, intentional, willful or unlawful) shall be strictly attributable to Lessee.

9. UTILITIES.

Lessee shall pay prior to delinquency, and shall indemnify and hold the City harmless from, all costs incurred in installation, hook-up, delivery, and repair of all utilities and services whatsoever supplied to or consumed by Lessee on the Premises including, but not limited, to gas, water, sewer, electricity, telecommunications service, janitorial, garbage pickup and disposal, onPremises landscaping installation and maintenance (if any) and other public utilities. City shall not be responsible for providing any utilities or services to Lessee whatsoever, and shall not be liable to Lessee for any interruption or failure of any utility services to the Premises from any cause whatsoever, nor shall such interruption or failure constitute a constructive eviction or give rise to a right of rent offset or abatement or affect the obligations of Lessee under this Lease in any other way whatsoever.

10. ALTERATIONS.

10.1 Alterations. Lessee shall not make any alterations to the Premises or the Building without the prior written consent of the City which consent shall not be unreasonably withheld.

City shall be deemed to have reasonably withheld or withdrawn consent unless each and every proposed alteration (i) shall not, individually or in the aggregate, lessen the fair market value of the Premises or the Building, or materially affect the usefulness of the Premises or the Building, either for Lessee’s business or the business of potential successor tenants, (ii) be accompanied by all final plans and specifications with any deviation therefrom constituting a separate alteration subject to this Section 10, (iii) be constructed by a California licensed contractor and under the direction of a California licensed architect satisfactory to the City, and (iv) once consented to by the City, shall be completed expeditiously in a good and workmanlike manner, with first class quality materials, and in compliance with all applicable legal and insurance requirements, (v) shall be constructed in strict compliance with the additional conditions set forth in Section 10.4 hereof, and (vi) shall become a “Lessee Improvement” and part of the Premises and subject to this Lease, provided, at the City’s option, Lessee shall remove any such alteration and restore the Docusign Envelope ID: 3B8497E2-96C5-45AC-911C-7C658CF6E98C

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Premises to their condition prior to the making of same, normal wear and tear excepted, upon the expiration or earlier termination of the term hereof. The City shall exercise its option by 30 days’ notice given no later than 30 days after such expiration or termination and, if Lessee has not so removed and restored within 30 days after the City gives said notice, Lessee shall pay the City upon demand the reasonable rental value of the Premises during the period beginning with the date immediately following said 30 days after the City gives its notice and ending with the date upon which the removal and restoration is completed and the City may, but shall not be obligated to, remove such alteration and restore the Premises and Lessee also shall pay the City its cost of same upon demand.

10.2 Required Alterations. Subject to Section 10.1 above, Lessee shall, at its sole cost, make any alteration, addition, or change to the Premises of any sort, substantial or insubstantial, ordinary or extraordinary, foreseeable or unforeseeable, whether structural or otherwise, as may be required by law due to the existence of, or Lessee’s use or occupancy of, the Premises or as a result of Lessee’s application for any permit or governmental approval, provided that the City may elect to make same, in which case Lessee shall reimburse the City promptly upon demand for all costs of the City’s making same.

10.3 Security for Completion. Before commencing any proposed alteration, Lessee, if requested by the City, shall furnish to the City security reasonably satisfactory to the City guaranteeing to the City the completion of the proposed alteration within a reasonable time, free and clear of all liens and, if available, all encumbrances, chattel mortgages, conditional bills of sale, security agreements and other claims and charges (other than those, if any, permitted hereunder) and in accordance with any plans and specifications theretofore approved by the City and, if required under any City encumbrance, by the City’s lender.

10.4 Additional Conditions. Lessee further covenants and agrees that no alterations will be made except in compliance with, and Lessee hereby covenants that it will comply with, each of the following provisions:

10.4.1 Before any alterations are begun, Lessee shall procure, at its own sole cost and expense, all necessary permits from all governmental authorities and shall, on demand, deliver photocopies thereof to the City;

10.4.2 All alterations shall be made in compliance and conformity with all applicable laws;

10.4.3 In making any alterations, Lessee shall not violate the terms or conditions of any insurance policy obtained or required pursuant to the provisions of this Lease affecting or relating to the Premises or any part thereof;

10.4.4 Promptly after the completion of any alterations, Lessee shall procure, at Lessee’s own sole cost and expense, all permits of governmental authorities for the completed alterations as may be required by any applicable laws, if any, and, on demand, shall promptly deliver photocopies thereof to the City; and

10.4.5 Lessee shall pay all costs, expenses and liabilities arising out of, in connection with, or by reason of, any alterations, and shall keep the Premises, Building and Docusign Envelope ID: 3B8497E2-96C5-45AC-911C-7C658CF6E98C

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Project free and clear of all liens, claims and encumbrances in any way arising out of, in connection with, or by reason of, any alterations.

10.5 No City Contribution. The City shall not be required to make any contribution to the cost of any alterations or any part thereof, and Lessee covenants that the City shall not be required to pay any cost, expense or liability arising out of or in connection with or by reason of any alterations and shall indemnify and hold the City harmless from and against, and shall reimburse the City upon demand for, all such costs, expenses and liabilities (including, without limitation, reasonable attorneys’ fees and disbursements).

10.6 Notice. If Lessee makes any alterations to the Premises as provided in this Section 10, the alterations shall not be commenced until ten (10) days after the City has received written notice from Lessee stating the date the installation of the alterations is to commence so that the City can post and record an appropriate notice of nonresponsibility at the Premises.

10.7 Manner; Cost. Any alterations by Lessee shall be made in a manner that will not interfere with the quiet enjoyment of the other tenants in the Building. Lessee shall pay prior to delinquency all cost for construction done by it or caused by it to be done on the Premises as permitted by this Lease. Lessee shall also reimburse the City upon demand for all costs the City incurs in reviewing any proposed alteration, including without limitation, architect, engineer and legal fees. Upon completion of any such work, Lessee shall have recorded in the office of the County Recorder of Santa Clara County a Notice of Completion as required or permitted by law.

10.8 Mechanic’s Liens. Lessee shall keep the Premises, the Building and the Project free and clear of all mechanic’s liens resulting from construction done by or for Lessee.

10.9 Trade Fixtures. Lessee shall have the right at any time, and from time to time during the term of this Lease, at Lessee’s sole cost and expense, to install in or on the Premises such items, herein called “trade fixtures,” for use in Lessee’s trade or business as Lessee may, in its reasonable discretion, deem advisable, except that all such Lessee’s trade fixtures, furniture, furnishings, signs, and other personal property not permanently affixed to the Premises must be new when installed in, or attached to, the Premises. (All items identified on the Inventory of Fixtures, Exhibit B, shall be subject to all provisions of this Lease governing fixtures.) Any and all such trade fixtures shall remain the property of Lessee, and may be removed by Lessee at any time or times prior to the expiration or sooner termination of this Lease so long as Lessee is not in default hereunder, so long as Lessee shall immediately replace the same with similar personal property of comparable or better quality, except that Lessee shall not be obligated to replace such personal property at the expiration or earlier termination of this Lease, and Lessee shall immediately repair all damage caused by such removal and restore the Premises to substantially the condition they were in prior to the installation of such fixtures so that no trace remains of their presence at the Premises. At all times during the term of this Lease, Lessee shall maintain such trade fixtures in a good, first class condition.

10.10 Removal. Any trade fixtures described in this Section 10 that are not removed from the Premises by Lessee on the date of expiration or sooner termination, regardless of cause, of this Lease shall be deemed abandoned by Lessee and shall automatically become the property of the City and Lessee shall hold City harmless as to all claimants with respect to same.

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10.11 Insurance. In the event that Lessee shall make any permitted improvements to the Premises under the provisions of this Section 10, Lessee agrees to carry such insurance as the City may reasonably request covering any such improvements, it being expressly understood and agreed that none of such improvements shall be insured by the City under the insurance it may carry upon the Building, nor shall the City be required to reconstruct any such improvements under any circumstances whatsoever, notwithstanding the provisions of Section 13.

11. TAXES.

11.1 Personal Property Taxes. Lessee shall pay prior to delinquency all taxes, license fees and public charges assessed or levied against Lessee or or Lessee’s Improvements, trade fixtures, furnishings, equipment and other personal property.

11.2 Assessments and Special Taxes. As a municipal corporation, City’s fee interest in the Project is exempt from the 1% general property tax levy and therefore property taxes will not be levied and will not be passed through to lessee or other tenants of the Project during City’s ownership of the Project. However, if and to the extent the Project or portion thereof is subject to special taxes or assessments, Lessee shall pay Lessee’s share of all such assessment and special taxes, if any, (other than possessory interest taxes on Lessee’s leasehold interest which shall be paid 100% by Lessee) which become due and payable to City on or before the later of ten (10) days prior to the delinquency thereof or three (3) days after the date on which Lessee receives a copy of the special tax or assessment bill and notice of City’s determination hereunder. Lessee’s liability to pay special taxes and assessments shall be prorated on the basis of a three hundred sixty-five (365) day year to account for any fraction or portion of a tax year included in the Lease term at the commencement or expiration of the Lease.

11.3 Revenue and Taxation Code Notice; Possessory Interest Taxes. Lessee specifically acknowledges it is familiar with §107.6 of the California Revenue and Taxation Code, realizes that a possessory interest subject to property taxes may be created, agrees to pay any such tax in full and without proration, and hereby waives any rights Lessee may have under said California Revenue and Taxation Code §107.6. City shall have no obligation to pay any possessory interest tax. No such possessory interest tax or any other tax payable by Lessee shall in any way reduce or substitute for the rent, charges or fees required to be paid as a condition of this Lease or as otherwise required by City.

12. HOLD HARMLESS/INDEMNIFICATION.

12.1 Indemnification. To the extent permitted by law, Lessee agrees to protect, defend, hold harmless and indemnify City, its City Council, commissions, officers, agents, volunteers, and employees from and against any claim, injury, liability, loss, cost, and/or expense or damage, however same may be caused, including all costs and reasonable attorney’s fees in providing a defense to any claim arising therefrom for which City shall become legally liable arising from Lessee’s negligent, reckless, or wrongful acts, errors, or omissions with respect to or in any way connected with this Lease. Lessee shall give City immediate notice of any claim or liability hereby indemnified against.

12.2 Waiver of Claims. Lessee waives any claims against City for injury to Lessee’s business or any loss of income therefrom, for damage to Lessee’s property, or for injury or death Docusign Envelope ID: 3B8497E2-96C5-45AC-911C-7C658CF6E98C

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of any person in or about the Premises or the Project, from any cause whatsoever, except to the extent caused by City’s active negligence or willful misconduct.

13. DAMAGE, DESTRUCTION AND TERMINATION.

13.1 Uninsured Risks. If, during the Term of this Lease, the Premises or the Building are totally or partially destroyed from a risk not covered by the insurance described in Section

19.2, the City, at its option, may elect to terminate this Lease by giving notice to Lessee or may elect to restore the same. However, as to destruction which was caused by an act or omission of Lessee, its employees, agents, invitees or permittees, Lessee shall reimburse the City the full cost of the restoration of the Premises, Building shell, and all leasehold improvements therein under any circumstances. If the City elects to restore the Premises or the Building, Lessee shall be entitled to a proportionate reduction of rent while such repairs are being made. Such reduction shall be in an amount which bears the same proportion to the Base Rent as the floor area of that portion of Premises which has been damaged or is otherwise unusable by Lessee, bears to the total floor area of the Premises, except that if the damage or destruction is to more than 50% of the square footage of the Premises and Lessee ceases to occupy the Premises, such proportionate reduction shall be 100%.

13.2 Insured Risks.

13.2.1 If, during the Term of this Lease, the Premises or the Building are totally or partially destroyed from a risk covered by insurance described in Section 19.2, the City shall forthwith repair the same to substantially the same condition they were in immediately prior to the destruction and to the extent of proceeds received under such insurance, provided such repairs can be made within ninety (90) days under then existing law. Such destruction shall in no way annul or void this Lease, except that Lessee shall be entitled to a proportionate reduction of rent while such repairs are being made, including but not limited to the foregoing ninety days, such proportionate reduction to be equal to, and granted upon the City’s receipt of, the proceeds received by the City from any rental interruption insurance maintained by Lessee. Such reduction shall be in an amount which bears the same proportion to the minimum monthly rent as the floor area of that portion of the Premises which has been damaged or is otherwise unusable by Lessee bears to the total floor area of the Premises. If such repairs cannot be made in 90 days, the City may, at its option, make same within a reasonable time, this Lease continuing in full force and effect and the rent being proportionately reduced as aforesaid. In the event that the City does not so elect to make such repairs which cannot be made in 90 days, or such repairs cannot be made under such then existing law, this Lease shall terminate.

13.2.2 Notwithstanding any other provision of this Lease, if, at any time during the term of this Lease, the Premises or the Building are totally or partially destroyed and (i) the total cost to repair the Premises or the Building exceeds One Hundred Thousand Dollars($100,000), or (ii) twenty percent (20%) of the Building is damaged or destroyed (and whether or not any portion of the Premises is also damaged or destroyed), the City may elect to terminate this Lease by written notice to Lessee. Determination of the extent of damage or destruction and the time for effectuating repair shall be made by the City based upon written appraisals and insurance adjustment reports, and shall be final and binding on the Parties.

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13.3 Extent of Obligation. Notwithstanding the foregoing, the City shall not be required to repair, reconstruct, or restore damage or destruction by fire or other cause to any portion of the Premises constructed by or for Lessee, and Lessee shall at its sole cost and expense fully restore or replace its stock in trade, trade fixtures, furniture, furnishings, equipment, and other personal property. Lessee shall commence all such replacement and restoration work promptly following the occurrence of any such damage or destruction, and shall diligently prosecute such work to completion. Lessee hereby waives any statutory rights of termination which may arise by reason of any partial or total destruction of the Premises or any part thereof.

Upon termination of the Lease under any of the provisions of this Section 13, the Parties shall be released thereby from any further obligations hereunder except for obligations which, prior to the date of such termination, had already accrued, and except as provided in the following sentence.

In the event of such a termination, all proceeds from Lessee’s insurance which pertain to alterations or improvements to the Premises which would otherwise become the property of the City upon expiration or termination of this Lease shall be disbursed and paid to the City.

13.4 Force Majeure/Excusable Delay. Except as provided in this Lease, any act of City or Lessee required by this Lease to be done within a specified time shall be subject to Excusable Delay. Lessee’s obligation to pay Rent, however, is not excused by this Section. “Excusable Delay” means prevention, delay or stoppage due to strikes, lockouts, labor disputes, Acts of God, inability to obtain labor, materials or reasonable substitutes, governmental restrictions, governmental regulation, governmental controls, judicial orders, enemy, or hostile governmental actions, civil commotion, fire or other casualty, and other causes beyond the reasonable control of Lessee or City (excepting, however, City’s or Lessee’s financial inability), which shall excuse the performance by City or Lessee for a period equal to the prevention, delay or stoppage, except the obligations imposed with regard to rent to be paid by Lessee pursuant to this Lease. In the event any work performed by Lessee or Lessee’s contractors results in a strike, lockout, and/or labor dispute, the strike, lockout, and/or labor dispute shall not excuse the performance by Lessee of the provisions of this Lease.

13.5 Waiver. City and Lessee waive the provisions of any statutes which relate to termination of leases when leased property is destroyed and agree that such event shall be governed by the terms of this Lease.

14. SIGNS.

Lessee shall not construct, maintain or place any signs, advertising or other exterior decoration (collectively, “Signs”) upon the exterior of the Premises or Project, or modify any existing Signs, without prior written consent of City. Any Sign that Lessee has the right to place, construct or maintain shall comply with all laws at all times during the term of this Lease, and Lessee shall obtain any approval required by such law. City makes no representation with respect to Lessee’s ability to obtain such approval.

15. ASSIGNMENT AND SUBLETTING.

15.1 City’s Consent Required. Lessee shall not assign this Lease, nor any interest therein, and shall not sublet or encumber the Premises or any part thereof, nor any right or privilege appurtenant thereto, nor allow or permit any other person(s) to occupy or use the Premises, or any portion thereof, without the prior written consent of City, such consent not to be Docusign Envelope ID: 3B8497E2-96C5-45AC-911C-7C658CF6E98C

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unreasonably delayed, withheld, or denied. This Lease shall be binding upon any permitted assignee or successor of Lessee. Consent by City to one assignment, subletting, occupation or use by another person shall not be deemed to be consent to any subsequent assignment, subletting, occupation or use by another person. No assignment, subletting, or encumbrance by Lessee shall release it from or in any way alter any of Lessee’s obligations under this Lease. Any assignment, subletting, encumbrances, occupation or use contrary to the provisions of this Lease shall be void and shall constitute breach of this Lease. City may assign any of its rights hereunder without notice to Lessee.

15.2 No Release of Lessee. No subletting or assignment as approved by City shall release Lessee of Lessee’s obligation or alter the primary liability of Lessee to pay the rent and to perform all other obligations by Lessee hereunder. The acceptance of rent by City from any other person shall not be deemed to be a waiver by City of any provision hereof. In the event of default by any approved assignee or other successor of Lessee in the performance of any of the terms hereof, City may proceed directly against Lessee without the necessity of exhausting remedies against such assignee or successor.

16. DEFAULTS; REMEDIES.

16.1 Defaults. The occurrence of any one or more of the following events shall constitute a material default or breach of this Lease by Lessee:

16.1.1 Abandonment of the Premises by Lessee as defined by California Civil Code § 1951.3;

16.1.2 Failure by Lessee to make any payment of rent or any other payment required to be made by Lessee hereunder, as and when due, where such failure shall continue for a period of ten (10) business days after written notice thereof from City to Lessee. In the event City serves Lessee with a Notice to Pay Rent or Quit pursuant to applicable Unlawful Detainer statutes, such Notice to Pay Rent or Quit shall also constitute the notice required by this subparagraph;

16.1.3 Failure by Lessee to observe or perform any of the covenants, conditions or provisions of this Lease in any material respect to be observed or performed by Lessee where such failure shall continue for a period of thirty (30) days after written notice thereof from City to Lessee; provided, however, that if the nature of Lessee’s default is such that more than thirty (30) days are reasonably required for its cure, then Lessee shall not be deemed to be in default if Lessee commenced such cure within said thirty (30) day period and thereafter diligently prosecutes such cure to completion;

16.1.4 Making by Lessee of any general arrangement or assignment for the benefit of creditors; Lessee’s becoming a “debtor” as defined in 11 U.S.C. § 101 or any successor statute thereto (unless, in the case of a petition filed against Lessee, the same is dismissed within sixty (60) days); the appointment of a bankruptcy trustee or receiver to take possession of all or substantially all of Lessee’s assets located at or on the Premises or of Lessee’s interest in this Lease where possession is not restored to Lessee within thirty (30) days; or the attachment, execution or other judicial seizure of all or substantially all of Lessee’s assets Docusign Envelope ID: 3B8497E2-96C5-45AC-911C-7C658CF6E98C

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located at or on the Premises or of Lessee’s interest in this Lease, where such seizure is not discharged within thirty (30) days.

16.2 Remedies. In the event of any material default or breach by Lessee, City may at any time thereafter, following any notice required by statute, and without limiting City in the exercise of any right or remedy which City may have by reason of such default or breach:

16.2.1 Terminate Lessee’s right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Lessee shall immediately surrender possession of the Premises and all alterations to City. In such event, City shall be entitled to recover from Lessee all damages incurred by City by reason of Lessee’s default including, but not limited to, the cost of recovering possession of the Premises and alterations, expenses of reletting, including necessary renovation and alteration of the Premises and alterations, reasonable attorneys’ fees, the worth at the time of the award of the unpaid rent that had been earned at the time of termination of this Lease and the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of such award exceeds the amount of such rental loss for the same period that Lessee proves could be reasonably avoided.

16.2.2 Maintain Lessee’s right to possession, in which case this Lease shall continue in effect whether or not Lessee shall have abandoned the Premises. In such event, City shall be entitled to enforce all of City’s rights and remedies under this Lease, including the right to recover rent as it becomes due hereunder.

16.2.3 Pursue any other remedy now or hereafter available to City under the laws or judicial decisions of the State of California.

16.3 No Relief from Forfeiture after Default. Lessee waives all rights of redemption or relief from forfeiture under California Code of Civil Procedure §§ 1174 and 1179, and any other present or future law, in the event Lessee is evicted or City otherwise lawfully takes possession of the Premises by reason of any default or breach of this Lease by Lessee.

17. INTEREST ON PAST-DUE OBLIGATIONS.

Except as expressly provided herein, any amount due City when not paid when due shall bear interest at the lesser of ten percent (10%) per year or the maximum rate then allowable by law from the date due.

18. CITY’S ACCESS.

18.1 Access for Inspection. City and City’s agents shall have the right to enter the Premises at reasonable times, upon not less than twenty-four (24) hours prior notice to Lessee or less in case of an emergency), for the purpose of inspecting same, showing same to prospective purchasers, lenders, lessees or others, and making such alterations, repairs, improvements or additions to the Premises as City may deem necessary. City may at any time place on or about the Premises any ordinary “For Sale” signs and City may at any time during the last one hundred twenty (120) days of the term hereof place on or about the Premises any ordinary “For Lease” signs, all without rebate of rent or liability to Lessee.

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18.1.1 City will conduct Premises inspections on a quarterly basis to identify maintenance issues that require attention. City will provide to Lessee a report specifying such maintenance issues as are identified that are Lessee’s responsibility under this Lease, and if appropriate, City will provide the estimated cost for services to perform the maintenance.

18.2 No Warranty. Except as otherwise stated in this Lease, Lessee hereby acknowledges that neither the City nor any employees or agents of the City has made any oral or written warranties or representations to Lessee relative to the condition or use by Lessee of said Premises and Lessee acknowledges that Lessee assumes all responsibility regarding the Occupational Safety and Health Act, the legal use and adaptability of the Premises and compliance with all applicable laws and regulations in effect during the term of this Lease.

18.3 Security Measures. City shall have the right to require a reasonable security system, device, operation or plan be installed and implemented to protect the Premises or any alterations. Should City, in its sole discretion, require Lessee to install such a security system, Lessee agrees to bear the sole cost and expense of any security system, device, operation or plan and the installation and implementation thereof. Lessee shall obtain City’s prior approval before installing or implementing any security system, device, operation or plan.

19. INSURANCE.

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

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

20. CONTRACT FOR ADMINISTRATIVE SERVICE.

To the extent that this Lease is a contract for administrative services, the City Council entered into such agreement upon recommendation of the City Manager pursuant to Section 1108 of the City’s Charter. The policy decision with respect to the services was made by the City Council and not by the City Manager.

21. DISPUTE RESOLUTION.

21.1 Unless otherwise mutually agreed to or as provided in Section 21.5, any controversies between Lessee and City regarding the construction or application of this Lease, and claims arising out of this Lease or its breach shall be submitted to mediation within thirty (30) days of the written request of one Party after the service of that request on the other Party.

21.2 The Parties may agree on one mediator. If they cannot agree on one mediator, the Party demanding mediation shall request the Superior Court of Santa Clara County to appoint a Docusign Envelope ID: 3B8497E2-96C5-45AC-911C-7C658CF6E98C

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mediator. The mediation meeting shall not exceed one day (eight (8) hours). The Parties may agree to extend the time allowed for mediation under this Lease.

21.3 The costs of mediation shall be borne by the Parties equally.

21.4 Except as provided in Section 21.5, mediation under this section is a condition precedent to filing an action in any court. In the event of litigation arising out of any dispute related to this Lease, the Parties shall each pay their respective attorney’s fees, expert witness costs and cost of suit, regardless of the outcome of the litigation.

21.5 Nothing in this Section shall require the City to mediate any eviction, unlawful detainer, or other exercise of remedies following the expiration of the Term of this Lease as provided in Section 2 or any termination of this Lease under Section 16.

22. PAYMENTS/PARTIAL PAYMENTS.

Payments shall be effective upon receipt. City may apply any payment received from Lessee at any time against any obligation due and owing by Lessee under this Lease, regardless of any statement appearing on or referred to in any remittance from Lessee or any prior application of such payments. Acceptance by City of a partial payment of rent or other charges shall not be considered or construed to waive any right of City or affect any notice of legal proceedings, unless both Parties shall agree otherwise in writing. The receipt by City of a partial payment of any amount due to City endorsed as payment in full will be deemed to be a partial payment only, and any endorsements or statements on the check or any letter accompanying the check shall not be deemed an accord and/or satisfaction, and, notwithstanding said endorsements, City may accept and deposit said check without prejudice to its right to recover the balance. Lessee’s obligation (without prior notice or demands) to pay rent and all other amounts due hereunder shall be absolute and unconditional, and not subject to any abatement, set off, defense, recoupment or reduction.

23. NON-LIABILITY OF OFFICIALS AND EMPLOYEES OF THE CITY.

No official or employee of City shall be personally liable for any default or liability under this agreement.

24. NON-DISCRIMINATION.

Lessee covenants it shall not discriminate based upon race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in any activity pursuant to this agreement.

25. CONFLICT OF INTEREST.

Lessee shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this agreement.

26. MEMORANDUM OF LEASE.

Lessee shall not record this Lease or a memorandum thereof, or any other reference to this Lease, without the prior written consent of the City. Lessee, upon the request of the City, shall execute Docusign Envelope ID: 3B8497E2-96C5-45AC-911C-7C658CF6E98C

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and acknowledge a Memorandum of Lease for recording in the official records of Santa Clara County. Upon termination or expiration of this Lease, Lessee shall execute and record a quitclaim deed as to its leasehold interest.

27. ESTOPPEL CERTIFICATE.

Lessee shall, from time to time, upon at least ten (10) days prior written notice from City, execute, acknowledge and deliver to City a statement in writing (i) certifying this Lease is unmodified and in full force and effect, or, if modified, stating the nature of the modification and certifying that the Lease, as modified, is in full force and effect, and the date to which the rental and other charges, if any, have been paid; and, (ii) acknowledging that there are not to Lessee’s knowledge, any defaults, or stating if any defaults are claimed, any statement may be relied upon by any prospective purchaser or encumbrancer of the Project.

28. LIENS.

Lessee agrees at its sole cost and expense to keep the Premises, Building and Project free and clear of any and all claims, levies, liens, encumbrances or attachments.

29. VACATING.

Upon termination of the tenancy, Lessee shall completely vacate the Premises, Building and Project, including the removal of any and all of its personal property and fixtures (whether or not identified on the Inventory of Fixtures (Exhibit B). Before departure, Lessee shall return keys and the Premises (including Lessee Improvements) to City the same condition in which it was received. Lessee shall allow City to inspect the Premises to verify the condition of the Premises and its contents.

30. ABANDONMENT.

Lessee’s absence from the Premises for three (3) consecutive days, without prior notice, during which time rent or other charges are delinquent, shall be deemed abandonment of the Premises and a material default by Lessee entitling City to the remedies in Section 16 above, including the right to terminate this Lease. In the event of such termination, City shall be authorized to enter and take possession and to remove and dispose of the property of Lessee and its employees, agents, contractors and invitees without any liability whatsoever to City.

31. PROPRIETARY AND GOVERNMENTAL ROLES; ACTIONS BY CITY.

Except where clearly and expressly provided otherwise in this Lease, the capacity of the City in this Lease shall be as owner and lessor of property only (“Proprietary Capacity”), and any obligations or restrictions imposed by this Lease on the City shall be limited to that capacity and shall not relate to, constitute a waiver of, supersede or otherwise limit or affect its governmental capacities, including enacting laws, inspecting structures, reviewing and issuing permits, and all of the other legislative and administrative or enforcement functions pursuant to federal, state or local law (“Governmental Capacity”). When acting in its Proprietary Capacity, discretionary actions may be undertaken by the City Manager or other designees as designated by the City Manager to the extent otherwise provided for in this Lease. In addition, nothing in this Lease shall supersede or waive any discretionary or regulatory approvals required to be obtained from Docusign Envelope ID: 3B8497E2-96C5-45AC-911C-7C658CF6E98C

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the City under applicable law, nor guarantee that the City, in its Governmental Capacity, will grant any particular request for a license, permit or other regulatory approval. Lessee understands that the City may grant or deny such request in its sole discretion, and may impose such terms and conditions as it deems consistent with that discretion and applicable laws.

32. HOLDOVER.

Lessee has no right to retain possession of the Premises or any portion thereof beyond the expiration or termination of this Lease. In the event that Lessee holds over after the expiration of the term without executing a new lease, then such holding over shall be construed as a tenancy from month-to-month, subject to all conditions, provisions and obligations of this Lease insofar as they are applicable to a month-to-month tenancy, except that the Base Rent portion of the rent shall be increased to 150% of the amount of the Base Rent payable immediately prior to the expiration or termination of the Lease, as the case may be. Nothing contained herein shall be construed as consent of City to any holding over by Lessee.

33. NOTICES.

All notices to the Parties shall, unless otherwise requested in writing, be sent to City addressed as follows:

City of Watsonville
City Clerk
275 Main Street, Suite 400
Watsonville, CA 95076
And to Lessee addressed as follows:

Lessee’s Notice Address:

Monterey Bay Air Resources District
24580 Silver Cloud Court
Monterey, CA 93940
Notices may be served upon Lessee in person or by first class mail or by certified mail to Lessee whether or not said mailing is accepted by Lessee. If notice is sent via facsimile, a signed, hard copy of the material shall also be mailed. The workday the facsimile was sent shall control the date notice was deemed given if there is a facsimile machine generated document on the date of transmission. A facsimile transmitted after 1:00 P.M. on a Friday shall be deemed to have been transmitted on the following Monday. These addresses shall be used for service of process.

34. TIME.

Time shall be of the essence in this Lease.

35. MISREPRESENTATIONS.

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Any statements submitted to City in the Application to Rent by Lessee (if applicable) are considered inducements to execute this Lease. Misrepresentations shall entitle City to terminate this Lease at any time.

36. AMENDMENTS.

It is mutually agreed that no oral Leases have been entered into and that no alteration or variation of the terms of this Lease shall be valid unless made in writing and signed by the Parties to this Lease.

37. INDEPENDENT LEGAL ADVICE.

Each Party represents and warrants to the other the following: they have carefully read this Lease, and in signing this Lease, they do so with full knowledge of any right which they may have; they have received independent legal advice from their respective legal counsel as to the matters set forth in this Lease, or have knowingly chosen not to consult legal counsel as to the matters set forth in this Lease; and, they have freely signed this Lease without any reliance upon any agreement, promise, statement or representation by or on behalf of the other party, or their respective agents, employees, or attorneys, except as specifically set forth in this Lease, and without duress or coercion, whether economic or otherwise.

38. SERVICE CHARGE.

A service charge of twenty dollars ($20.00) will be made for each check that must be resubmitted for payment.

39. SIGNING AUTHORITY.

If this Lease is not signed by all Lessees named herein, the person actually signing warrants that he/she has the authority to sign for the others.

40. CHANGE OF LOCKS.

Lessee may install new locks on all exterior doors. Lessee shall advise City of such action and shall provide City with keys to said locks. Lessee shall also deliver to City the old locks with keys. Upon termination, Lessee shall leave new locks that shall become the property of City.

41. CAPTIONS/RECITALS.

The captions of the various sections, paragraphs and subparagraphs of this Lease are for convenience only and shall not be considered or referred to in resolving questions of interpretation. All of the recitals of this Lease, and the defined terms set forth therein, are incorporated into and made a part of this Lease by this reference.

42. REPAIRS.

Except as expressly provided in this Lease, City shall have no obligation to repair or maintain the Premises or any alterations thereto or facilities placed therein. Lessee expressly waives the benefit of any statute now or hereinafter in effect which would otherwise afford Lessee the right Docusign Envelope ID: 3B8497E2-96C5-45AC-911C-7C658CF6E98C

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to make repairs at City’s expense or to terminate this Lease because of City’s failure to keep Premises in good order, condition and repair. Lessee shall not call on City to make any improvements or repairs to said property of any kind whatsoever.

43. SURRENDER OF LEASE NOT MERGER.

The voluntary or other surrender of this lease by Lessee, or a mutual cancellation thereof, shall not work a merger, and shall, at the option of City, terminate all or any existing subleases or subtenancies, or may, at the option of City, operate as an assignment to it of any and all such subleases or subtenancies.

44. INTEGRATED DOCUMENT; AMENDMENTS.

This Lease, including any exhibits attached hereto, embodies the entire agreement between City and Lessee and its terms and conditions. No other understanding, agreements, conversations or otherwise, with any officer, agent or employee of City prior to execution of this Lease shall affect or modify any of the terms or obligations contained in any documents comprising this Lease. Any such verbal agreement shall be considered as unofficial information and in no way binding upon City. This Lease may be modified only by a written amendment duly executed by the Parties to this Lease, pursuant to Section 37 entitled “Amendments.” All agreements with City are subject to approval of the City Council before City shall be bound thereby.

45. WAIVER.

Waiver by City of one or more conditions of performance or any breach or condition under this Lease shall not be construed as a waiver(s) of any other condition of performance or subsequent breaches or conditions. The subsequent acceptance by a Party of the performance of any obligation or duty by another Party shall not be deemed to be a waiver of any term or condition of this Lease. The exercise of any remedy, right, option or privilege hereunder by City shall not preclude City from exercising the same or any and all other remedies, rights, options and privileges hereunder and City’s failure to exercise any remedy, right, option or privilege at law or equity, or otherwise which City may have, shall not be construed as a waiver.

46. INTERPRETATIONS.

In construing or interpreting this Lease, the word “or” shall not be construed as exclusive and the word “including” shall not be limiting. The Parties agree that this Lease shall be fairly interpreted in accordance with its terms without any strict construction in favor of or against any other Party.

47. SEVERABILITY CLAUSE.

If any provision of this Lease is held to be illegal, invalid or unenforceable in full or in part, for any reason, then such provision shall be modified to the minimum extent necessary to make the provision legal, valid and enforceable, and the other provisions of this Lease shall not be affected thereby.

48. GOVERNING LAW.

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

49. VENUE.

In the event that suit shall be brought by any Party to this Lease, the Parties agree that venue shall be exclusively vested in the state courts of the County of Santa Clara.

50. COMPLIANCE WITH LAWS.

Lessee shall not use the Premises or permit anything to be done in or about the Premises which will in any way conflict with any law, statute, zoning restriction, ordinance or governmental law or rule, regulation, or requirement, including any Hazardous Materials laws or regulations, of any duly constituted public authorities now in force or which may hereafter be enacted or promulgated, or which will subject City to any liability for injury to any person or property by reason of any business operation being conducted in or about the Premises. To the extent required due to Lessee’s specific use of the Premises, alterations of the Premises made by Lessee, or as a result of Lessee’s application for permits or authorizations, Lessee shall, at its sole cost and expense, promptly comply with all applicable laws, statutes and ordinances, governmental rules, regulations, orders, permits, licenses, approvals, authorizations, federal and state disability laws, and other requirements including the Americans with Disabilities Act (“ADA”) of 1990 (42 U.S.C. 12101 et seq.), together with any amendment thereto or regulations promulgated under any of the foregoing, and any state or local ordinances or codes enacted pursuant thereto, and with all requirements of any board or fire insurance underwriters or other similar bodies, now or hereafter constituted, relating to or affecting the condition, use, or occupancy of the Premises by Lessee, any improvements or alterations made by, on behalf of, or for Lessee, or any other Lessee acts or omissions. The final judgment of any court of competent jurisdiction or the admission of Lessee in any action against Lessee, whether City be a party thereto or not, that Lessee has violated any laws shall be conclusive of that fact as between City and Lessee. Lessee, within ten (10) days after receipt, shall provide City with copies of any notices it receives regarding a material violation or alleged material violation of any Laws.

Lessee shall also cause its agents, contractors, subcontractors, employees, customers, and subtenants to comply with all applicable laws.

51. COUNTERPARTS; ELECTRONIC SIGNATURES.

This Lease may be executed in counterparts, each of which shall be deemed to be an original, but both of which shall constitute one and the same instrument; and, the Parties agree that signatures on this Lease, including those transmitted electronically by email or facsimile, shall be sufficient to bind the Parties.

52. ACCESSIBILITY; DISABILITY LAWS.

52.1 The Premises have not undergone an inspection by a Certified Access Specialist.

52.2 “A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or Docusign Envelope ID: 3B8497E2-96C5-45AC-911C-7C658CF6E98C

Lease Agreement/ MBARD Page 26 of 27
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tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.”

52.3 Since compliance with the ADA and other federal and state disability laws (collectively, “Disability Laws”) is dependent upon Lessee’s specific use of the Premises, City makes no warranty or representation as to whether or not the Premises comply with Disability Laws. In the event that Lessee’s use of the Premises requires modifications or additions to the Premises in order to be in compliance with Disability Laws, Lessee agrees to make any such necessary modifications and/or additions at Lessee’s sole cost and expense.

53. OFAC COMPLIANCE.

Lessee represents and warrants to City that Lessee is not a party with whom City is prohibited from doing business pursuant to the regulations of the Office of Foreign Assets Control (“OFAC”) of the U.S. Department of the Treasury, including those parties named on OFAC’s Specially Designated Nationals and Blocked Persons List. Lessee is currently in compliance with, and shall at all times during the term of this Lease remain in compliance with, the regulations of OFAC and any other governmental requirement relating thereto. In the event of any violation of this section, City shall be entitled to immediately terminate this Lease and take such other actions as are permitted or required to be taken under law or in equity. LESSEE

SHALL DEFEND, INDEMNIFY AND HOLD HARMLESS CITY FROM AND AGAINST

ANY AND ALL CLAIMS, DAMAGES, LOSSES, RISKS, LIABILITIES AND EXPENSES (INCLUDING ATTORNEYS' FEES AND COSTS) INCURRED BY CITY ARISING FROM OR RELATED TO ANY BREACH OF THE FOREGOING CERTIFICATIONS. These indemnity obligations shall survive the expiration or earlier termination of this Lease.

54. NO BROKERAGE.

City is represented in this transaction by SELF (“City’s Agent”). Brokerage fees, commissions or other payments owed to City’s Agent, if any, in connection with this Lease transaction shall be paid by City per the terms of a separate agreement between City and City’s Agent. Lessee represents and warrants to City that Lessee is represented in this transaction by SELF (“Lessee’s Agent”). Fees, if any, payable to Lessee’s Agent, if applicable, shall be paid pursuant to separate agreement(s) between City’s Agent and Lessee’s Agent or between Lessee and Lessee’s Agent.

Lessee shall indemnify and defend City from and against any claims made by Lessee’s Agent or any other person or entity purporting to represent Lessee in this transaction for any finder’s fee, brokerage fee, commission or other payment claiming through Lessee or its affiliates with respect to the execution of this Lease or the consummation of the transaction contemplated hereby.
[Remainder of page intentionally left blank]
[Signatures on next page]
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Lease Agreement/ MBARD Page 27 of 27
Rev.: 10-08-2025
CITY OF WATSONVILLE, CALIFORNIA, a chartered California municipal corporation
Dated: ________________________
ATTEST:

By
By:

Irwin Ortiz
City Clerk
APPROVED AS TO FORM:

By________________________________
Samantha W. Zutler
City Attorney
Tamara Vides
City Manager
“CITY”

MONTEREY BAY AIR RESOURCES DISTRICT
Dated: ___________________________________
By: _________________ __________________
Name: _______Richard A. Stedman _________
Title: _______Air Pollution Control Officer
Local Address: 24580 Silver Cloud Court. Monterey, CA 93940 Email Address: _________ [email protected] __ __
Telephone: _______ 831-647-9411 ___ ___
“LESSEE”
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Lease Agreement/ MBARD Exhibit A Page 1 of 1
Rev.: 10-08-2025

COMMERCIAL PROPERTY LEASE AGREEMENT

BY AND BETWEEN

CITY OF WATSONVILLE, CALIFORNIA
AND

MONTEREY BAY AIR RESOURCES DISTRICT

EXHIBIT A

DESCRIPTION/SITE PLAN OF PREMISES, BUILDING

AND PROJECT INCLUDING PARKING LOT
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Lease Agreement/ MBARD Exhibit B Page 1 of 1
Rev.: 06-10-2025

COMMERCIAL PROPERTY LEASE AGREEMENT

BY AND BETWEEN

CITY OF WATSONVILLE, CALIFORNIA
AND

MONTEREY BAY AIR RESOURCES DISTRICT

EXHIBIT B

INVENTORY OF FIXTURES
The premises was originally delivered unfurnished in a “warm vanilla shell”.

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Lease Agreement/ MBARD Exhibit C Page 1 of 2
Rev.: 10-08-2025

COMMERCIAL PROPERTY LEASE AGREEMENT

BY AND BETWEEN

CITY OF WATSONVILLE, CALIFORNIA
AND

MONTEREY BAY AIR RESOURCES DISTRICT

EXHIBIT C

INSURANCE REQUIREMENTS
Lessee shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the Lessee’s operation and use of the leased premises. The cost of such insurance shall be borne by the Lessee.

A. MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Workers’ Compensation Insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease. (This applies to lessees with employees).

3. Property insurance against all risks of loss to any tenant improvements or betterments, at full replacement cost with no coinsurance penalty provision.

If the Lessee maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Lessee. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

B. OTHER INSURANCE PROVISIONS:

The insurance policies are to contain, or be endorsed to contain, the following provisions:

1. Additional Insured Status: The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Lessee including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can Docusign Envelope ID: 3B8497E2-96C5-45AC-911C-7C658CF6E98C

Lease Agreement/ MBARD Exhibit C Page 2 of 2
Rev.: 10-08-2025
be provided in the form of an endorsement to the Lessee’s insurance (at least as broad as ISO Form CG 20 10).

2. Primary Coverage: For any claims related to this contract, the Lessee’s insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or selfinsurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Lessee’s insurance and shall not contribute with it.

3. Legal Liability Coverage: The property insurance is to be endorsed to include Legal Liability Coverage (ISO Form CP 00 40 04 02 or equivalent) with a limit equal to the replacement cost of the leased property.

4. Notice of Cancellation: Each insurance policy required above shall provide that coverage shall not be canceled, except with thirty (30) days’ prior written notice to the City.

5. Waiver of Subrogation: Lessee hereby grants to City a waiver of any right to subrogation which any insurer of said Lessee may acquire against the City by virtue of the payment of any loss under such insurance. Lessee agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

6. Acceptability of Insurers: Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A: VII, unless otherwise acceptable to the City.

7. Self-Insured Retentions: Self-insured retentions must be declared to and approved by the City. The City may require the Lessee to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.

8. Verification of Coverage: Lessee shall furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to City before occupying the premises. However, failure to obtain the required documents prior to the work beginning shall not waive the Lessee’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by these specifications, at any time.

9. Special Risks or Circumstances: City reserves the right to modify these requirements at any time, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

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1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, October 28, 2025
TO: CITY COUNCIL
WRITTEN BY: PARKS SUPERINDENTENT MEDINA
RECOMMENDED BY: PARKS & COMMUNITY SERVICES DIRECTOR CALUBAQUIB APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: ACCEPTING GAMETIME GRANT FOR NEW PLAYGROUND AT CHERRY

BLOSSOM PARK, AND APPROVING PURCHASE OF THE SAME
RECOMMENDATION:

It is recommended that the Council adopt a Resolution accepting a $39,112 GameTime Community Champions Playground Grant for a new Cherry Blossom Park playground, approving a Purchase Order for the purchase of the Playground from GameTime in the amount of $103,052, authorizing and directing the City Manager to execute same; and finding the action exempt from review pursuant to CEQA Guidelines section 15302 (Class 2) .

BACKGROUND:

Cherry Blossom Park, a 0.15-acre pocket park established over 20 years ago, was identified as a highpriority site in our recent Park Assessment Study. The assessment factored characteristics of the site including community value, equity, and park condition. Cherry Blossom Park ranked third overall in terms of priority, indicating significant gaps in service and infrastructure relative to community needs.

Notably, Cherry Blossom Park received a score of 1 in the disability equity category, reflecting the highest percentage of residents with disabilities in its service area. This designation underscores the park’s critical role in advancing inclusive access and highlights its urgency for targeted investment.

The existing play structure entrance does not meet current ADA accessibility standards, further reinforcing the need for comprehensive upgrades to ensure equitable recreational opportunities for all residents DISCUSSION:

2 Staff identified a strategic funding opportunity when notified of GameTime’s playground grant program, which offered to subsidize 50% of the cost for new play equipment. Upon notification, staff acted promptly to apply and successfully secure the grant. The grant will be directly applied as a discount on the final invoice. The grant can only be applied to GameTime products requiring this to be a sole source purchase pursuant to Watsonville Municipal Code section 3-5.210(c).

GameTime provided a quote of $132,656, with installation, freight and taxes. After applying available grant discounts, the total cost is reduced to $103,052.

Parks staff conducted community outreach in the form of online and hard copy surveys and an in-person community meeting held on site on October 11, 2025. City Staff distributed 200 flyers across six blocks surrounding the neighborhood to promote participation in the community survey and in-person outreach meeting. The responses included 31 residents sharing their input, with 26 respondents under the age of

44. Survey results showed that 87% of respondents (26 out of 30) preferred the playground design option which we are planning to move forward with.

Out of 21 written comments, top priorities for the park were:
 Playground improvements (9 mentions)
 More seating (6 mentions)
Both of these priorities will be directly addressed as part of the upcoming project.

Additional suggestions included:
 Basketball court (3 mentions)
 Dog park (3 mentions)
 Shade (2 mentions)
 Sink, Picnic area, Tennis courts (1 mention each)
Due to the limited size of the park, a basketball court or tennis court would not be feasible. Also given the size of the park, the dog park option would be challenging directly next to a playground. City staff are exploring options for a picnic area and shade."
The forthcoming playground installation will significantly enhance the recreational experience at Cherry Blossom Park. In addition to modernizing play features, improving safety standards, and introduction of ADA-accessible elements, the project addresses a priority location based on our Citywide Park assessment.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

Adopting a Resolution accepting the Gametime Community Champions Grant and approving purchase of the playground is exempt from review pursuant to CEQA Guidelines section 15302 (Class 2) because this is a replacement of an existing play structure where the new structure will be located on the same site and will have substantially the same purpose and capacity as the structure replaced.

STRATEGIC PLAN:

3 Community Engagement & Well-being- The new playground will enhance Cherry Blossom Park and promote meaningful community engagement, reflecting the input and feedback gathered throughout the planning process. Additionally, it will feature ADA-compliant design elements, addressing a critical need for inclusive accessibility.

Infrastructure & Environment- The existing playground at Cherry Blossom Park has reached a condition that necessitates a complete structural replacement, rather than temporary repairs.

FINANCIAL IMPACT:

The Cherry Blossom Park Playground upgrade will be partially funded through a grant, covering 50% of the equipment cost. The City will fund the remaining equipment balance and associated installation expenses. Installation will be subcontracted by GameTime as required by the grant.

Procurement will be managed through GameTime’s OMNIA system, ensuring competitive pricing. Through the OMNIA system, This purchase is exempt from the purchasing procedures of Chapter 5 (Purchasing Procedures) of Title 3 (Finance) of the Watsonville Municipal Code as a purchase made cooperatively with (1) or more units of government under (e) of § 3-5.210 of Municipal Code.

The remaining $103,052 will come from the Park Assessment CIP (201-973-7361-15153) funded by Measure R, designated specifically to support improvements identified in the Park Assessment Study.

ALTERNATIVE ACTION:

Council may choose not to adopt the resolution accepting the GameTime grant and authorizing approval to issue a purchase order for the new playground and instead explore alternative playground equipment options and/or suppliers. However, this approach could result in higher overall costs, as the current proposal benefits from the grant valued at $39,112, which directly offsets the cost of the designated play structure. The grant has a deadline of the end of October 2025.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

1. GameTime Playground Quote

2. Cherry Blossom Park Final Renderings

Watsonville City of
Attn: Joseph Medina
320 Harvest Drive
Watsonville, CA 95076
United States
Phone: 831-768-3150
[email protected]
Ship to Zip 95076
Quantity Part # Description Unit Price Amount
1 RDU GameTime - Custom PowerScape 5-12 Play StructureAs shown on top view dated 10.10.25$78,073.00 $78,073.00 1 28009 GT-Site - 6' P/S Bench W/Back Inground $1,061.00 $1,061.00 1 28012 GT-Site - 8' P/S Bench W/Back Inground $1,451.00 $1,451.00 1 INSTALL GameTime - by GameTime-Certified InstallerIncludes installation of above-quoted play structure and (2) benches; demo and dispose of existing play equipment; demo and dispose of existing surfacing; prep site for new install; haul spoils; installation of concrete 4' x 6' ADA ramp leading into play area; provide and install compacted road base for new PIP pathway; installation of temporary fencing around work area while project is under construction.
$42,330.00 $42,330.00
1 56242PIP GT-Impax - Supply and Installation of 199 SF Poured in Place Safety Surfacing- - Includes 2.0" system comprised of a 1.5" cushion layer and a 0.5" wear layer accounting for up to a 4' fall height
- 50% standard color EPDM (blue, green, red, or beige) 50% black - Includes 128 SF with 71 LF of turndown into EWF at up to 18" in length - Aromatic Binder, Prevailing Wages, Good job access, No design - Borders / Security / Dumpster BY OTHERS
$7,905.00 $7,905.00
1 RDU GameTime - Bonds $1,836.00 $1,836.00
Contract: OMNIA #2017001134 Sub Total $132,656.00
Grant ($39,111.86)
Freight $5,463.50
Tax $4,043.63
Total $103,051.27
Comments
Price is based on the GameTime Community Champions Playground Grant Program.

A check for the FULL PAYMENT is due within 10 days of equipment delivery.

Credit card or purchase orders do not qualify for this discount percentage.

OMNIA Partners f/n/a USC Contract #2017001134 Vendor #121531 Please supply your OMNIA registration # or Federal Tax ID #: ________________ Shipping to Watsonville, CA 95076.

Engineered wood fiber is NOT included in this proposal.

Please note: The sales tax rate shown on the quote is determinant on the final end use locaon, which is 41 Loma Prieta Ave., Freedom, CA 95019. Any variaon will result in a review of the appropriate tax rate, which will be applied to your final order.

INSTALLATION SCHEDULE TO BE DETERMINED BY WEATHER CONDITIONS ALLOWING FOR PROPER MATERIAL SET UP AND CURING.

QUOTE DOES NOT INCLUDE ANY TENTING OR ARTIFICIAL HEATING.

C/O MRC
PO Box 225250
San Francisco, CA 94122
Ph: 800-235-2440
Em: [email protected]
Web: www.mrcrec.com
10/13/2025
Quote #
116244-01-06
CA Watsonville City of Cherry Blossom Park Option 2 Revised Page 1 of 3 Attachment 1

PLEASE NOTE: Quote assumes favorable access with install locaon within 50 linear feet of box truck staging area. Quote assumes any adjacent sprinklers or irrigaon will be shut off at least 24hrs prior to our crew's arrival on site.

Due to the market volatility of raw materials, pricing is valid for 30 days after date of quotation. All quotes must be reviewed after 30 days.

CHOOSE YOUR COLOR SCHEME: IT IS VERY IMPORTANT THAT YOU CHOOSE A COLOR SCHEME FOR YOUR MODULAR PLAYGROUND UNIT AT TIME OF ORDER. PLEASE SELECT FROM ONE OF THE MANY "PLAY PALETTES" LISTED IN THE BACK OF THE GAMETIME CATALOG OR ON OUR WEBSITE: www.gametime.com. INDICATE YOUR SELECTION BELOW.

GAMETIME PLAY PALETTE: ___________________________
NOTE: COLOR SELECTION FOR ALL OTHER EQUIPMENT SHOULD BE ENTERED IN THE SPACE PROVIDED UNDER THAT SPECIFIC ITEM.

NOTES: It is the customer’s responsibility to verify total square footage of materials.

Poured in place must be installed on asphalt, concrete or crushed stone surfacing.

Grading and base preparation of area is required prior to installation of above surfacing.

Base must be GTImpax Architectural Specifications.

Customer must be on site at time of delivery.

Customer is responsible for overnight security of the site.

A large turning area is required for access by tractor/trailer.

This quotation is subject to policies in the current GameTime Park and Playground Catalog and the following terms and conditions. Our quotation is based on shipment of all items at one time to a single destination, unless otherwise noted, and changes are subject to price adjustment. Purchases in excess of $1,000.00 to be supported by your written purchase order made out to GAMETIME, c/o MRC. Customer is responsible for any required permits and fees pertaining to such permits.

PRICING / PAYMENT: Pricing F.O.B. factory, firm for 30 days from date of quotation. PAYMENT TERMS: Check in full due 10 days after delivery made payable to GameTime.

TAXES: State and local taxes, if applicable, will be added at time of invoicing unless a tax exempt certificate is provided at the time of order entry.

FREIGHT/SHIPMENT: Freight charges: Prepaid and added at time of invoicing. Shipment: order will ship within 10-12 weeks after GameTime’s receipt and acceptance of your signed quotation and color selections.

RECEIPT OF GOODS: Installer is responsible for unloading and uncrating equipment from truck at city warehouse. Installer shall receive, unload and inspect goods upon arrival, noting any discrepancies on the Delivery Receipt prior to written acceptance of the shipment.

Customer must be on-site at time of PIP delivery. Direct access to the site is required for a tractor-trailer to deliver the PIP surfacing.

INSTALLATION: Installation by a Gametime Certified Installer. The terms of installation listed briefly below:

Installation Pricing is based on manufacturer's recommended footing depth of 30" below finished grade. Any requirement greater than that will incur additional charges.

Installation assumes a flat, dirt surface with no grading preparation required.

Gametime’s installer is not responsible for any grading.

Customer is responsible for calling 888-DIG-SAFE a minimum of 72 hours before installation is to begin.

Direct access is required for large construction vehicles.

All work is to be done in one move.

All excavated material is to remain on site.

Overnight security is not included in this proposal.

The installation of engineered wood fiber safety surfacing and border timbers is not included in the above price.

Unforeseen subsurface obstructions may incur additional charges.

C/O MRC
PO Box 225250
San Francisco, CA 94122
Ph: 800-235-2440
Em: [email protected]
Web: www.mrcrec.com
10/13/2025
Quote #
116244-01-06
CA Watsonville City of Cherry Blossom Park Option 2 Revised Page 2 of 3 Attachment 1

EXCLUSIONS: unless specifically included, this quotation excludes all landscaping; storage of goods prior to installation; engineered wood fiber safety surfacing; borders and drainage provisions.

TO ORDER: Please complete the acceptance portion of this quotation and provide color selections and other key information requested.

Acceptance of this proposal indicates your agreement to the terms and conditions stated herein.

Sales Representative: Jenn Peterson/es
Acceptance of quotation: (ALL INFORMATION REQUIRED)
Accepted By (printed): ________________________________ Signature: _____________________________________________ Date: ______________________________________ Title: __________________________________________________ Phone: _____________________________________ Email:_________________________________________________ Facsimilie: _________________________________ Purchase Amount: $103,051.27
Order Information: (ALL INFORMATION REQUIRED)
Bill To: ________________________________________________ Ship To: ____________________________________ Bill To Contact: ________________________________________ Ship To Contact: ___________________________ Bill To Email:___________________________________________ Ship To Email: ______________________________ Bill To Phone: _________________________________________ Ship To Phone: (Office):______________________ (Cell):________________________
Bill to Address: _________________________________________ Ship To Address: _____________________________ Bill To City, State, Zip: __________________________________ Ship To City, State, Zip: ________________________ SALES TAX EXEMPTION CERTIFICATE #:_____________________________________________ (PLEASE PROVIDE A COPY OF CERTIFICATE)

C/O MRC
PO Box 225250
San Francisco, CA 94122
Ph: 800-235-2440
Em: [email protected]
Web: www.mrcrec.com
10/13/2025
Quote #
116244-01-06
CA Watsonville City of Cherry Blossom Park Option 2 Revised Page 3 of 3 Joseph Medina
10/13/25
Parks Superintendent 831-768-3240
[email protected]
City of Watsonville City of Watsonville
Christopher Krishna Joseph Medina
320 Harvest Dr
Watsonville, Ca 95076
831-768-3240
320 Harvest Dr [email protected]
320 Harvest Dr
Watsonville, Ca 95076
831-285-9855
Attachment 1

Attachment 2

Attachment 2

Attachment 2

Attachment 2

Attachment 2

Reso No. (CM)
Meeting Date: 102825
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE ACCEPTING THE GAMETIME COMMUNITY
CHAMPIONS PLAYGROUND GRANT OF $39,112 FOR A NEW CHERRY
BLOSSOM PARK PLAYGROUND; AUTHORIZING THE CITY MANAGER

TO EXECUTE THE PURCHASE ORDER FOR THE PLAYGROUND AND

INSTALLATIONAND FINDING THE ACTION EXEMPT FROM REVIEW
PURSUANT TO CEQA GUIDELINES SECTION 15302 (CLASS 2)
WHEREAS, the City of Watsonville was awarded the GameTime Community Champions Playground Grant, which covers fifty percent of playground equipment by applying a discount to the total invoice.; and
WHEREAS, the City received a quote from Gametime, a member of OMNIA, through OMNIA Contract #2017001134, for the purchase and installation of the new Cherry Blossom Park Playground, in an amount not to exceed One hundred three thousand fifty-two dollars ($103,052).

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

1. Adopting a Resolution accepting the Gametime Community Champions Grant and approving purchase of the playground is exempt from review pursuant to CEQA Guidelines section 15302 (Class 2) because this is a replacement of an existing play structure where the new structure will be located on the same site and will have substantially the same purpose and capacity as the structure replaced. t.

2. That the Council hereby accepts the GameTime Community Champions Playground Grant of $39,112.

3. This purchase is exempt from the purchasing procedures of Chapter 5 (Purchasing Procedures) of Title 3 (Finance) of the Watsonville Municipal Code as the equipment and grant opportunity is unique and available from only one source pursuant

Reso No. (CM)
Meeting Date: 122825
2 to subsection (c) of § 3-5.210 of Municipal Code.4. That the Council hereby authorizes the purchase and installation of The New Cherry Blossom Park Playground, through the purchasing authority of OMNIA Contract #2017001134, in an amount not to exceed One hundred three thousand fifty-two dollars ($103,052).

4. That the City Manager is hereby authorized and directed to execute said purchase order for and on behalf of the City of Watsonville, including any extensions amendments thereof to implement this purchase.
********************************

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, October 28, 2025
TO: CITY COUNCIL
WRITTEN BY: PRINCIPAL MANAGEMENT ANALYST ZAVALA
RECOMMENDED BY: CITY MANAGER VIDES
APPROVED BY: CITY MANAGER VIDES
SUBJECT: PROPOSED ASSESSMENT BALLOTS FOR THE SANTA CRUZ COUNTY

MOSQUITO AND VECTOR CONTROL MANAGEMENT SERVICES
RECOMMENDATION:

It is recommended that the City Council adopt a resolution to authorize the City Manager to vote “Yes” on the City’s assessment ballots for City-owned parcels for the Santa Cruz County Mosquito, Vector, and Disease Control Proposed Benefit Assessment; and to submit ballots on behalf of the City of Watsonville.

BACKGROUND:

Since 1993, the Santa Cruz County Mosquito and Vector Control Division which is managed by the County Agricultural Commissioner, protects communities from mosquito and vector-borne diseases through surveillance, prevention, and environmentally responsible control of mosquitoes, ticks, rodents, and other pests that can spread disease.

Funding for the Division has relied on a voter-approved benefit assessment. The current assessment is between $18.69 and $24.26 per year for single-family homes and has not been updated in nearly 30 years.

The Division receives no other County funding beyond this assessment.

Rising operational costs, inflation, and the potential reappearance of invasive mosquito species prompted the Board of Supervisors to direct staff in 2023 to explore a benefit assessment increase. In August 2025, the Board approved a Resolution of Intention to levy the assessment and authorize mailing ballots to all property owners starting September 2, 2025.

2 DISCUSSION:

To maintain and enhance its ability to respond to public health threats, the Division is proposing a benefit assessment increase. If approved, all funds would remain locally controlled and dedicated exclusively to mosquito and vector control services in Santa Cruz County. Ballots were mailed to property owners the week of September 2, 2025, and must be returned by November 4, 2025.

The proposed assessment would continue support for:
 Monitoring of native and invasive mosquitoes and vector-borne diseases  Tick and rodent inspection, testing, and prevention services  Free mosquito-eating fish for ponds and troughs
 Rapid response to resident service requests
 Yellowjacket and wasp control when needed
 Community education on vector prevention and safety
For most single-family homes, the increase would be about $1 per month ($11.99 per year). Other property types (multi-family, commercial, agricultural) are assessed based on land use, size, and proximity to vector habitats. Larger property owners may pay between $11-$15 per month. All assessments were calculated in accordance with the attached Engineer’s Report, which outlines costs, benefits, and funding allocations. If assessment is approved, after the 2026-2027 fiscal year, the maximum allowed assessment rate will only be adjusted for inflation by an amount equal to the change in the Northern California (San Francisco-Oakland – Hayward) Consumer Price Index (CPI), not to exceed 3% per year. These annual increases would first need to be reviewed and approved by the Board of Supervisors yearly.

3 This ballot is specifically for the proposed Mosquito & Vector Control Assessment and is separate from any other election. Benefit Assessments are applied under Proposition 218 and are calculated based on benefits to properties. Thus, the decision of whether or not to add or increase rates to an assessment is decided by the property owners (who would be paying for the assessment charges), not registered voters in the County.

Each property’s vote is weighted by the amount of its proposed assessment. If the vote receives a 50% majority, the assessment would go up to the Count Board of Supervisors for final approval. Results of the votes will be announced at the public hearing scheduled for Tuesday, November 18, 2025.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

The approval of the assessment is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. The CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment.

STRATEGIC PLAN:

Infrastructure & Environment
FINANCIAL IMPACT:

The proposed cumulative annual assessment increase for all the City-owned parcels is $1,037.75. After the 2026-2027 fiscal year, the maximum allowed assessment rate will be adjusted for inflation by an amount equal to the change in the Northern California (San Francisco-Oakland – Hayward) CPI, not to exceed 3% per year, upon review and approval by the County Board of Supervisors.

ALTERNATIVE ACTION:

The City Council may choose not to authorize a “Yes” vote on the assessment ballots, which could contribute to a majority vote against the assessment.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

A. Assessment Notice and Ballot Information Guide
B. Engineer’s Report
C. List of City-owned Properties that are impacted by the proposed assessment

Attachment A

Attachment A

Attachment A

Attachment A

Fiscal Year 2026-27
Santa Cruz County
Mosquito & Vector Control (SCCMVC)
Mosquito, Vector and Disease Control Assessment
Engineer’s Report
August 2025
Pursuant to the Health and Safety Code, Government Code and Article XIIID of the California Constitution
Attachment B Page 398 of 543 Page 1 of 63
(This page intentionally left blank)
Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27
Page i
Santa Cruz County Mosquito & Vector Control Division
Board of Supervisors:

Manu Koenig, 1st District
Kimberly De Serpa, 2nd District
Justin Cummings, 3rd District
Felipe Hernandez, 4th District
Monica Martinez, 5th District
Assistant Vector Control Manager
Amanda Poulsen, M.S.

Engineer of Work
SCI Consulting Group
Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27
Page ii
Table of Contents
Introduction............................................................................................................... 1 Overview of the Division ...........................................................................................................1 Overview of Vector Control.......................................................................................................2 Introduction to Benefit to Property ..........................................................................................3 Assessment Process...................................................................................................................5 Legislative Analysis....................................................................................................................6 Current Funding for Vector Control Program is Inadequate.....................................................9 General Description of the Division and Services to be Provided ............................... 11 About the Santa Cruz County Mosquito & Vector Control Division........................................11 Introduction.............................................................................................................................11 Mosquitoes..............................................................................................................................12 Integrated Vector Management (IVM)....................................................................................14 Public Relations, Outreach, and Education .............................................................................24 Estimate of Costs and Budget ................................................................................... 25 Method of Assessment............................................................................................. 27 Discussion of Benefit...............................................................................................................27 Mosquito and vector control is a Special Benefit to Properties .............................................29 Benefit Factors ........................................................................................................................30 Benefit Finding ........................................................................................................................37 General vs. Special Benefit......................................................................................................38 Calculating General Benefit.....................................................................................................40 Zones of Benefit ......................................................................................................................44 Method of Assessment............................................................................................................45 Assessment Apportionment....................................................................................................47 Duration of Assessment ..........................................................................................................53 Implementation of Government Code §§ 53759.1 and 53759.2 (AB 2257 Compliance) .......53 Appeals and Interpretation .....................................................................................................54 Assessment.............................................................................................................. 55 Assessment Roll ....................................................................................................... 57 Assessment Diagram ................................................................................................ 58 Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27
Page iii
List of Figures
Figure 1 – Cost Estimate – FY 2026-27 Budget.............................................................................. 25 Figure 2 – Residential Assessment Factors.................................................................................... 49 Figure 3 – Commercial/Industrial Benefit Assessment Factors..................................................... 52 Figure 4 – Summary Cost Estimate – FY 2026-27 Budget.............................................................. 55 Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Introduction
Overview of the Division
The Santa Cruz County Mosquito and Vector Control (SCCMVC) Division or ‘Division’, established in 1993, is committed to protecting public health by managing mosquito populations and controlling vector-borne diseases. Operating under the County Agricultural Commissioner’s Office, the Division employs Integrated Vector Management (IVM) strategies, including mosquito surveillance, biological control, source reduction, and the use of highly specific, least toxic pesticides to minimize environmental impact.

In August 2005, SCCMVC significantly expanded its operations by forming the North County Mosquito and Disease Control Assessment, which was approved by over 70% of property owners.

This ballot measure extended services from two original zones to the entire county, covering 445 square miles and including the Cities of Capitola, Santa Cruz, and Scotts Valley. The $12.00 assessment per single-family home generated approximately $710,000 for the 2005-06 fiscal year, allowing for enhanced mosquito control and increased staffing, especially in high-need areas.

The Santa Cruz County Board of Supervisors certified the measure, enabling SCCMVC to address public health threats such as West Nile Virus and encephalitis more effectively. Additionally, the funding supports the control of other vectors such as rodents, ticks, and flies. This Program consists of a dynamic combination of surveillance, treatment criteria, and the use of multiple control activities in a coordinated program including public education.

Over the years, SCCMVC has adapted to challenges such as urbanization and economic changes that affect mosquito breeding sites. The countywide expansion has enhanced the Program’s ability to conduct extensive surveillance, implement targeted control measures, and respond promptly to public health threats.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Overview of Vector Control
A vector is defined by the State of California as “any animal capable of transmitting the causative agent of human disease or capable of producing human discomfort or injury, including, but not limited to, mosquitoes, flies, other insects, ticks, mites, and rats, but not including any domesticated animal…” [California Health and Safety Code Section 2200(f)]. The diseases of most concern in the area covered by the Division ( Service Area or Assessment Area) are as follows, by the vector they are associated with:
 Mosquito-transmitted illnesses: West Nile virus (WNV), Western Equine Encephalitis virus (WEEV), Saint Louis Encephalitis virus (SLEV), dog and cat heartworm, malaria, Dengue virus, Chikungunya virus, and Zika virus.
 Tick-transmitted illnesses: Lyme disease, Hard Tick Relapsing Fever (HTRF), babesiosis, ehrlichiosis, tularemia, rickettsial illnesses, anaplasmosis.  Rodent-transmitted illnesses: leptospirosis, hantavirus, tularemia, plague, and rat-bite fever.
 Other vector-transmitted illnesses: rabies by bats or other wildlife, plague and murine typhus transmitted by fleas, and raccoon roundworm.

Depending on the specific disease, both human and domestic animal health may face risks of illness, disability, or even death. Additionally, existing vectors can introduce and spread new diseases, and new disease vectors can enter the Service Area.

SCCMVC’s Integrated Vector Management (IVM) practices involve a continuous series of coordinated actions aimed at controlling mosquitoes and other vectors that cause human disease and discomfort. The Division’s efforts include identifying vector-related issues; taking responsive measures to reduce current vector populations, preventing the emergence of new vector sources, and managing habitats to limit vector breeding; and educating landowners and the public on strategies to decrease vector presence or interactions.

This integrated systems approach to mosquito and vector control means that pesticides are used as the last line of defense for vector management. When pesticides are necessary, SCCMVC’s inventory consists of products that are naturally derived, organic, and/or highly specific to the target pest. Additionally, when pesticides are required to protect public health, they are used in rotation, which is an environmentally responsible technique to prevent resistance.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Introduction to Benefit to Property
The services to be provided to the Assessment Area will include intensive surveillance, disease prevention, abatement, and control of mosquitoes for properties within the Assessment Area.

Such mosquito, vector and disease prevention services, projects and programs include, but are not limited to: source reduction, biological control, larvicide applications, adulticide applications, disease monitoring, public education, reporting, accountability, research and interagency cooperative activities, as well as capital costs, maintenance, and operation expenses as further described below.

The Assessment Area is narrowly drawn to include only properties that can request and/or receive service, that are located within the scope of the vector surveillance area, that are located within flying or traveling distance of potential vector sources monitored by SCCMVC, and that will benefit from a reduction in the amount of vectors reaching and impacting the property as a result of the enhanced mosquito surveillance and control. The Assessment Diagram included in this report shows the boundaries of the Assessment Area.

Summary of Services
The following is an outline of the primary programs, projects, services, and improvements (collectively “Services”) that will be funded by the Mosquito, Vector and Disease Control assessment:0F
1  County-wide surveillance of native and invasive mosquitoes and the diseases they carry.  Testing for a variety of vector-borne diseases carried by mosquitoes, ticks, and other vectors of public health concern.
 Rodent exclusion inspection and consultation services as a long-term solution to prevent public health hazards associated with rodent damage and their common ectoparasites like mites and fleas.
 Tick identification and disease risk consultation based on species, life stage, and other risk factors.
 Delivery of mosquito-eating fish for county residents for use in backyard ponds, livestock troughs, and other artificial water sources.
 Rapid response to service requests concerning mosquitoes, rodents, ticks, and other vectors.
 Environmentally responsible and highly specific mosquito control treatments when necessary to reduce disease risk and protect public health. 1 The improved mosquito and vector control and disease prevention services would materially increase the usefulness, utility, livability and desirability of properties in the Assessment Area.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

 Community engagement through education, presentations, and events designed to promote awareness and empower residents to practice vector safety and vector-borne disease prevention.

This Engineer’s Report (Report) defines the proposed benefit assessment, which will provide funding for these improved mosquito, vector and disease control services for property throughout the Division, as well as related costs for equipment, capital improvements and services, and facilities necessary and incidental to mosquito, vector and disease control programs.

As used within this Report and the benefit assessment ballot proceeding, the following terms are defined:
“Vector” means any animal capable of transmitting the causative agent of human disease or capable of producing human discomfort or injury, including, but not limited to, mosquitoes, flies, mites, ticks, other arthropods, and rodents and other vertebrates (Health and Safety Code Section 2002(k)).
“Vector Control” means any system of public improvements or services that is intended to provide for the surveillance, prevention, abatement, and control of vectors as defined in subdivision (k) of Section 2002 of the Health and Safety Code and a pest as defined in Section 5006 of the Food and Agricultural Code (Government Code Section 53750(l)).

The Division operates under the authority of the Mosquito Abatement and Vector Control District Law of the State of California. The following are excerpts from the Mosquito Abatement and Vector Control District Law of 2002, codified in the Health and Safety Code, Section 2000, et seq., which serve to summarize the State Legislature’s findings and intent with regard to mosquito abatement and other vector control services:
2001. (a) The Legislature finds and declares all of the following:
(1) California's climate and topography support a wide diversity of biological organisms. (2) Most of these organisms are beneficial, but some are vectors of human disease pathogens or directly cause other human diseases such as hypersensitivity, envenomization, and secondary infections.
(3) Some of these diseases, such as mosquitoborne viral encephalitis, can be fatal, especially in children and older individuals.
(4) California's connections to the wider national and international economies increase the transport of vectors and pathogens.
(5) Invasions of the United States by vectors such as the Asian tiger mosquito and by pathogens such as the West Nile virus underscore the vulnerability of humans to uncontrolled vectors and pathogens.
(b) The Legislature further finds and declares:
(1) Individual protection against the vectorborne diseases is only partially effective. (2) Adequate protection of human health against vectorborne diseases is best achieved by organized public programs.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

(3) The protection of Californians and their communities against the discomforts and economic effects of vectorborne diseases is an essential public service that is vital to public health, safety, and welfare.
(4) Since 1915, mosquito abatement and vector control districts have protected Californians and their communities against the threats of vectorborne diseases. (c) In enacting this chapter, it is the intent of the Legislature to create and continue a broad statutory authority for a class of special districts with the power to conduct effective programs for the surveillance, prevention, abatement, and control of mosquitoes and other vectors.
(d) It is also the intent of the Legislature that mosquito abatement and vector control districts cooperate with other public agencies to protect the public health, safety, and welfare. Further, the Legislature encourages local communities and local officials to adapt the powers and procedures provided by this chapter to meet the diversity of their own local circumstances and responsibilities.

Further the Health and Safety Code, Section 2082 specifically authorizes the creation of benefit assessments for vector control, as follows:
(a) A district may levy special benefit assessments consistent with the requirements of Article XIIID of the California Constitution to finance vector control projects and programs.

Assessment Process
This Report describes the mosquito, vector and disease control services to be funded by the assessment, to establish the estimated costs for those services, to determine the special benefits and general benefits received by property from the services, and to apportion the assessments to lots and parcels within the Division’s Service Areas based on the estimated special benefit each parcel receives from the services funded by the benefit assessment.

Following submittal of this Report to the Board of Supervisors (Board) for preliminary approval, the Board, by Resolution, may call for an assessment ballot protest proceeding and public hearing on the proposed establishment of Assessments for the provision of the Services.

If the Board so directs, a notice of assessment and assessment ballot will be mailed to property owners within the Assessment District boundaries who receive special benefit from the Services.

Such notice will include a description of the Services to be funded by the proposed Assessments, the proposed assessment amount for each parcel owned, and an explanation of the method of submitting a ballot on the Assessments. Each notice will include a ballot on which the property owner would mark their support for or opposition to the proposed Assessments and signature, as well as a postage prepaid envelope in which to return the ballot. Ballots are scheduled to be mailed on September 2, 2025.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

After the ballots are mailed to property owners in the Improvement District, a minimum 45-day time period must be provided for the return of the assessment ballots. Following this 45-day time period, a public hearing must be held for the purpose of allowing public testimony regarding the proposed Assessments, and the submission of property owner ballots. The Public Hearing is tentatively scheduled for November 4 at 9:00 am. At the Public Hearing, the public will have the opportunity to speak on the issue, voice any concerns or protests, obtain further information about the proposed Assessments, and submit ballots.

Tabulation of the returned ballots will begin after the close of the public input portion of the Public Hearing. It is anticipated that the tabulation results will be announced at the Board meeting on November 18, 2025. If it is determined that the assessment ballots submitted in opposition to the proposed Assessments do not exceed the assessment ballots submitted in favor of the Assessments (each ballot is weighted by the proportional financial obligation of the property for which the ballot is submitted) the Board may take action to approve the levying of Assessments for Fiscal Year 2026-27. If the Assessments are so confirmed and approved, the assessment information will be submitted to the County Auditor/Controller. The County Auditor/Controller will include the Assessments on the property tax roll for Fiscal Year 2026-27.

Legislative Analysis
Proposition 218
This assessment will be formed consistent with Proposition 218, The Right to Vote on Taxes Act, which was approved by the voters of California on November 6, 1996, and is now Article XIIIC and XIIID of the California Constitution. Proposition 218 provides for benefit assessments to be levied to fund the cost of providing services, improvements, as well as maintenance and operation expenses to a public improvement which benefits the assessed property.

Proposition 218 describes a number of important requirements, including a property-owner balloting, for the formation and continuation of assessments, and these requirements are satisfied by the process used to establish this assessment. When Proposition 218 was initially approved in 1996, it allowed for certain types of assessments to be “grandfathered” in, and these were exempted from the property–owner balloting requirement.

Beginning July 1, 1997, all existing, new, or increased assessments shall comply with this article. Notwithstanding the foregoing, the following assessments existing on the effective date of this article shall be exempt from the procedures and approval process set forth in Section 4:
(a) Any assessment imposed exclusively to finance the capital costs or maintenance and operation expenses for sidewalks, streets, sewers, water, flood control, drainage systems or vector control.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Vector control was specifically “grandfathered in,” underscoring the fact that the drafters of Proposition 218 and the voters who approved it were satisfied that funding for vector control is an appropriate use of benefit assessments and therefore confers special benefit to propert Silicon Valley Taxpayers Association, Inc. v Santa Clara County Open Space Authority (2008) 44 Cal.4th 431
On July 14, 2008, the California Supreme Court issued its ruling on the Silicon Valley Taxpayers Association, Inc. v. Santa Clara County Open Space Authority (“Silicon Valley”). Several of the most important elements of the ruling included further emphasis that:
 Benefit assessments are for special, not general benefit  The services and/or improvements funded by assessments must be clearly defined  Special benefits are directly received by and provide a direct advantage to property in the Assessment District
Dahms v. Downtown Pomona Property (2009) 174 Cal.App.4th 708 On June 8, 2009, the 4th Court of Appeal amended its original opinion upholding a benefit assessment for property in the downtown area of the City of Pomona. On July 22, 2009, the California Supreme Court granted review and transferred the case to the Court for Appeal for reconsideration in light of the Supreme Court’s discussion in the above cited Silicon Valley Taxpayers Association case. In Dahms the Appellate Court on reconsideration upheld the assessment that was 100% special benefit (i.e. 0% general benefit) on the rationale that the services and improvements funded by the assessments were directly provided to property in the assessment district. The Court also upheld discounts and exemptions from the assessment for certain properties.

Bonander v. Town of Tiburon (2009) 46 Cal.4th 646
On December 31, 2009, the First Appellate District overturned a benefit assessment approved by property owners to pay for placing overhead utility lines underground in an area of the Town of Tiburon. The Court invalidated the assessments on the grounds that the assessments had been apportioned to assessed property based in part on relative costs within sub-areas of the assessment district instead of proportional special benefits.

Beutz v. County of Riverside (2010) 184 Cal.App.4th 1516 On May 26, 2010, the Fourth Appellate District issued a decision on the Steven Beutz v. County of Riverside (“Beutz”) appeal. This decision overturned an assessment for park maintenance in Wildomar, California, primarily because the general benefits associated with improvements and services were not explicitly calculated, quantified and separated from the special benefits.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Golden Hill Neighborhood Association V. City of San Diego (2011)199 Cal.App.4th 416
On September 22, 2011, the Fourth Appellate District issued a decision in the Golden Hill Neighborhood Association v. City of San Diego. This decision overturned an assessment for street and landscaping maintenance in the Greater Golden Hill neighborhood of San Diego, California.

The court described two primary reasons for its decision. First, as in Beutz, the court found the general benefits associated with services were not explicitly calculated, quantified and separated from the special benefits. Second, the court found that the City had failed to document the basis for the assessment on its own parcels.

Concerned Citizens for Responsible Government v. West Point Fire Protection District (2011)149 Cal. Rptr. 3d 640
On November 28, 2012, the California Supreme Court dismissed the appeal in the case of Concerned Citizens for Responsible Government v. West Point Fire Protection District (Case No.

S195192) “as moot.” The Court granted review of the decision early in July 2012 after several local government organizations petitioned the Court to have the decision de-published because of its apparent conflicts with the California Constitution and potentially overly broad impact on other assessments.

For fire agencies, the most concerning aspect of the decision from the Third Appellate District was that it stated that fire services (as opposed to improvements) may be in whole or in part a general benefit, and therefore unsuitable for funding with an assessment. The decision remains unpublished and cannot be cited as binding precedent.

Compliance with Current Law
This Report is consistent with the requirements of Article XIIIC and XIIID of the California Constitution and with the Silicon Valley decision because the Services to be funded are clearly defined; the Services are available to and will be directly provided to all benefited property in the Assessment District; the Services provide a direct advantage to property in the Assessment District that would not be received in absence of the assessment, and are benefits that are over and above general benefits conferred on real property located in the district or to the public at large by other public entities that make up the membership of the Authority.

This Report is consistent with Dahms because, similar to the Downtown Pomona assessment validated in Dahms, the Services will be directly provided to property in the Assessment District.

More specifically, as discussed hereafter, the Services afford benefits specifically unique and supplied only to property owners within the District with a corresponding effect that is not shared by other parcels outside of the District or real property in general including the public at large.

While Dahms could be used as the basis for a finding of 0% general benefits, this Engineer’s Report establishes a more conservative separation and quantification of general benefits.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

The Report is also consistent with Bonander because the Assessment has been apportioned based on the proportional special benefit to each property. Furthermore, the Assessment is consistent with Beutz and Golden Hill because the general benefits have been explicitly calculated, quantified, and excluded from the assessment.

Current Funding for Vector Control Program is Inadequate Since its formation in 1993, the Santa Cruz County Mosquito & Vector Control Division has been funded primarily through a benefit assessment charged on property tax bills, ranging from approximately $18.69 to $24.26 annually for single-family homes. While this modest fee has supported essential mosquito and vector control services across the county’s 445 square miles, including surveillance, prevention, and environmentally responsible control, the assessment has not kept pace with rising operational costs, including increased expenses for supplies, equipment, and responding to emerging vector threats.

The Division does not receive funding from the County general fund and has been relying on reserve funds to cover budget shortfalls. With operational expenses continuing to rise, the current funding is insufficient to maintain existing service levels or address new challenges effectively.

A critical emerging concern is the invasive Aedes aegypti mosquito, first detected in Watsonville in 2022. This species has been responsible for dengue virus transmission in Southern California in recent years and poses a growing public health risk in Santa Cruz County. Controlling Aedes aegypti requires increased and sustained monitoring, testing, and treatment efforts, which place additional financial demands on the program.

The proposed Benefit Assessment aims to close the funding gap and allow the Division to maintain and enhance critical services, including:
 Monitoring native and invasive mosquitoes and the diseases they may carry.  Testing mosquitoes, ticks, and other vectors for diseases of public health concern.  Inspections and advice to prevent and mitigate rodent infestations.  Tick identification and disease risk consultation.
 Delivery of mosquito-eating fish for ponds and troughs.  Rapid response to service requests from the public related to mosquitoes, rodents, ticks, and other vectors.
 Environmentally responsible mosquito control when needed to protect public health.  Engaging the community through education to promote vector safety and disease prevention.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Summary of Benefit Assessment Rates and Revenue by Zone To fund the cost of providing mosquito, vector and disease control services in the Fiscal Year 2026-27, the proposed Assessment will generate approximately $1,118,297. This funding amount reflects the financial needs of the program and is distributed proportionally based on benefits received. The assessment includes two service zones: Zone A, assessed at $11.99 per Single Family Equivalent (SFE), is expected to generate approximately $1,103,610, while Zone B, assessed at $11.69 per SFE, is expected to generate approximately $14,687.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

General Description of the Division and Services to be Provided About the Santa Cruz County Mosquito & Vector Control Division Established in 1993 as a division of the County Agricultural Commissioner’s Office, the Santa Cruz County Mosquito & Vector Control Division (SCCMVC) is dedicated to managing mosquitoes and other vectors to protect public health. SCCMVC employs Integrated Vector Management (IVM) practices to address vector-related challenges. These practices include source reduction, biological control, rodent exclusion, public education, and frequent surveillance of dangerous invasive species throughout the county.

In 2005, the program expanded its service area to encompass the entire County of Santa Cruz, covering approximately 445 square miles. This expansion included key cities such as Capitola, Santa Cruz, Scotts Valley, Davenport, Soquel, Live Oak, Corralitos, the San Lorenzo Valley, and other unincorporated regions, in addition to areas that had been served since 1994. The Division now serves over 270,000 residents and handles more than 500 service calls annually, addressing a wide range of vector-related issues. This growth has enhanced the Division’s capacity for extensive mosquito surveillance, targeted control measures, and timely responses to public health threats like West Nile Virus, encephalitis, Lyme disease, and other vector-borne diseases.

Year-round and countywide, SCCMVC conducts regular inspections of mosquito habitats, monitors mosquito populations through sampling and trapping, and implements control strategies focused on the aquatic stages of mosquito development to ensure effective and sustainable management. Additionally, SCCMVC provides valuable services such as distributing mosquitofish for backyard ponds, offering rodent inspections, and educating the community on minimizing vector interactions.

Introduction
The Services to be provided by the Division are over and above the baseline level of service that would be provided if the measure is not approved. The formula below identifies the final level of service as the sum of the baseline level of service (without the assessment) and the enhanced level of service to be funded by the assessment.

Final Level of
Service = Baseline Level of
Service
+ Enhanced Level of
Service
Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Mosquitoes
Mosquitoes generally occur where there is adequate vegetation for harborage and where water is standing and/or stagnant. Although mosquitoes have seasonal breeding cycles throughout the rest of the State, Santa Cruz County’s temperate climate tends to produce mosquitoes and other vectors year-round. The mosquito species listed in the table below can be generally described as species of concern in Assessment Area:

SPECIES HABITAT ABUNDANCE SEASON DISEASE ASSOCIATIONS
Culex tarsalis Many Great Year
Round
West Nile Virus,
St. Louis Encephalitis,
Western Equine Encephalitis
Culex
quinquefasciatus
Many Great Year
Round
West Nile Virus, St. Louis
Encephalitis, dog heart worm
Culex
erythrothorax
Tule Ponds Great Year
Round
Potential for secondary
reservoir for WNV
Culex
stigmatosoma
Foul water Great Year
Round
West Nile and other
arboviruses
Aedes.
squamiger
Saltwater
tidal
Great Winter Serious daytime pest in
recreational areas
Culex pipiens Many Great Spring,
Summer,
Fall
West Nile virus, St. Louis
encephalitis
Culiseta incidens Many Moderate Winter,
Spring,
Fall
None, serious pest in
urban/suburban areas
Culiseta inornata Many Moderate Winter,
Spring,
Fall
None, serious pest in
urban/suburban areas
Anopheles
franciscannis
Creeks,
lakes,
wetlands
Moderate Summer,
Fall
Dawn/ Dusk pest
Anopheles
punctipennis
Creeks,
lakes
Moderate Summer,
Fall
Malaria
Aedes aegypti Small
sources
around
homes
Undetermined Summer,
Fall
Dengue, Chikungunya, Zika,
West Nile virus
Aedes sierrensis Oak tree
holes,
walnut
orchards
Moderate Late
Winter,
Spring
Canine heartworm, serious
pest in urban/suburban areas
Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Culiseta
particepts
Many Moderate Spring,
Summer,
Fall
None, serious pest in
urban/suburban areas rural
Aedes washinoi Fresh
floodwater
sites
Moderate Winter,
Spring
Pest in spring (day)
Aedes dorsalis Saltwater
tidal
Moderate Summer Serious daytime pest in
recreational areas
The mosquito breeding habitats in Northern Santa Cruz County range from street gutters to catch basins, marsh areas, irrigated lands, storm water basins, neglected pools, ponds, creeks, birdbaths, or any artificial containers found in backyards. Mosquito and/or vector control activities are conducted at a wide variety of locations or sites throughout the Division’s Service Area, including tidal marshes, duck clubs, other diked marshes, lakes and ponds, rivers and streams, vernal pools and other seasonal wetlands, stormwater detention basins, flood control channels, spreading grounds, street drains and gutters, wash drains, irrigated pastures, or agricultural ditches, as well as animal troughs, artificial containers, tire piles, fountains, ornamental fishponds, swimming pools, liquid waste detention ponds, and non-natural harborage (such as covered wood piles, residential and commercial landscape, trash receptacles).

Throughout the Assessment Area, activities would be conducted at similar sites. Of particular note in the table above, Aedes aegypti may be eradicated from one area but can reappear elsewhere; the Division conducts ongoing surveillance and rapid response to prevent its establishment and protect public health.

Culex tarsalis (Western Encephalitis Mosquito) is the primary vector of West Nile Virus (WNV), Saint Louis encephalitis (SLE) and the Western Equine encephalomyelitis (WEE) viruses. This species lives in a variety of aquatic sources ranging from clean to polluted waters, flooded agricultural fields to backyard stagnant pools, and fresh water to high salinity brackish water. This mosquito breeds year-round and prefers to feed on birds. However, it readily attacks humans, horses and cattle.

Culex quinquefasciatus (Southern House Mosquito) is most frequently found in residential communities. This species breeds in highly polluted waters, artificial containers, septic tanks, underground channels, catch basins, waste treatment ponds, and neglected swimming pools.

Birds are the principal blood meal source; however, they will readily attack humans and invade their homes. This mosquito is also an excellent vector for West Nile virus.

Culex erythrothorax (Tule Mosquito) is associated with ponds containing water plants called Tules.

The Tule mosquito is a late morning/nighttime-biting mosquito and has been identified as a species of concern in the transmission of West Nile virus to birds. (Secondary reservoir) Culex stigmatosoma: This mosquito breeds in foul water. It is primarily a bird feeder but will bite humans and animals.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Culiseta spp: This species breeds in a variety of habitats during the cooler months, and active mostly during late fall and winter. These mosquitoes are also associated with the transmission of arboviruses.

Anopheles spp: These mosquitoes also breed in cool shaded areas in riparian habitats and a variety of other habitats. This species is known to transmit malaria.

Native Aedes species: Breed in environments such as irrigated pastures, salt marshes, containers, and tree holes. These mosquitoes are known to be fierce day biters. An example of a native species is Aedes sierrensis, which is capable of transmitting dog heartworm.

Invasive Aedes species: notably the Asian Tiger mosquito (Aedes albopictus) and the Yellow Fever mosquito (Aedes aegypti), have spread extensively across Southern California, the Central Valley, and portions of Northern California over the past decade. This spread represents a significant public health concern because these invasive mosquitoes can transmit several serious diseases, including Dengue, Chikungunya, Yellow Fever, and Zika viruses. In 2022, Aedes aegypti was discovered in Watsonville, marking its continued expansion in the state. These invasive species have already been linked to dengue transmission in Southern California in 2023 and 2024. Due to their aggressive nature and disease vector potential, combating these invasive mosquitoes requires enhanced resources and coordinated control efforts.

The Santa Cruz County Mosquito & Vector Control Division applies the latest integrated and environmentally sound methods to control mosquitoes in the county. SCCMVC works with City, County, State, and Federal agencies toward the permanent correction of mosquito breeding sources.

The mosquito-borne diseases of most concern locally are: WNV, WEE, and SLE which are all transmitted by mosquitoes. Among the principal threats to which the Division responds are:
 Human and animal diseases associated with mosquitoes
 Annoyance and economic disruption caused by mosquitoes Integrated Vector Management (IVM)
SCCMVC’s Services address several types of vectors through Integrated Vector Management (IVM). This includes the identification and control of vector populations, the prevention of new sources of vectors from developing, and the management of habitat in order to minimize vector production. Also included is the education of residents on measures to minimize vector production or interaction with vectors, and the provision and administration of funding and institutional support necessary to accomplish these goals.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Program
SCCMVC’s IVM program seeks by definition to use procedures that will minimize potential environmental impacts. SCCMVC employs IVM principles by first determining the species and abundance of mosquitoes/vectors through evaluation of public service requests and field surveys of immature and adult mosquito/vector populations and, then, if the populations exceed predetermined criteria, using the most efficient, effective, and environmentally sensitive means of control. For all vector species, public education is an important control strategy. In some situations, water management or other physical control activities can be instituted to reduce mosquito-breeding sites or habitats for other vectors like ticks. SCCMVC also uses biological control such as mosquito-eating fish in ornamental fishponds, water troughs, water gardens, fountains, and unmaintained swimming pools. When these approaches are not effective or are otherwise deemed inappropriate, then pesticides are used to treat specific pest-producing or pest-harboring areas.

Three core tenets are essential to the success of a sound IVM program:
 First, a proactive approach is necessary to minimize impacts and maximize successful vector management. Elements such as thorough surveillance and a strong public education program make all the difference in reducing potential human vector interactions.
 Second, long-term environmentally based solutions (e.g., water management, reduction of harborage and food resources, exclusion, and enhancement of predators and parasites) are optimal as they reduce the potential pesticide load in the environment as well as other potential long- and short-term impacts.
 Lastly, utilizing the full array of options and tools (public education, surveillance, physical control, biological control, and when necessary chemical control) in an informed and coordinated approach supports the overall goal of an environmentally sensitive vector management program.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Physical Control
When managing vector habitat to reduce vector production or migration, either directly or through public education is often the most cost-effective and environmentally benign element of an Integrated Vector Management (IVM) program. This approach to the control of vectors and other pests is often called “physical control” to distinguish it from those vector management activities that directly rely on the application of chemical pesticides (chemical control) or the introduction or relocation of living agents (biological control). Other terms that have been used for vector habitat management include “source reduction,” which emphasizes the significance of reducing the habitat value of an area for vectors, or “permanent control,” to contrast with the temporary effectiveness of pesticide applications. Vector habitat management is important because its use can virtually eliminate the need for pesticide use in and adjacent to the affected habitat and, in some situations, can virtually eliminate vector production from specific areas for long periods of time, reducing the potential disturbances associated with frequent biological or chemical control activities. The intent is to reduce the abundance of vectors produced or sheltered by an area while protecting or enhancing the habitat values of the area for desirable species. In many cases, physical control activities involve restoration and enhancement of natural ecological functioning, including the production and dispersal of special-status species and/or predators of vectors.

Physical control for mosquitoes consists of the management of mosquito-producing habitats (including freshwater marshes and lakes, saltwater marshes, temporary standing water for 1 week or more, and wastewater treatment facilities), especially through water control and maintenance or improvement of channels, tide gates, levees, and other water control facilities. Physical control is usually the most effective mosquito control technique because it provides a long-term solution by reducing or eliminating mosquito developmental sites and ultimately reduces and potentially eliminates the need for chemical applications.

For vegetation management, SCCMVC uses hand tools, mechanical means (i.e., power saws), and expertise for vegetation removal or thinning and sometimes applies herbicides (chemical pesticides with specific toxicity to plants) to improve surveillance or reduce vector habitats.

Vegetation removal or thinning primarily occurs in aquatic habitats to increase access for SCCMVC staff for thorough monitoring and control of mosquitoes in water bodies that are habitats for mosquitoes. To reduce the potential for mosquito breeding associated with water retention and infiltration structures, SCCMVC staff may systematically clear weeds and other obstructing vegetation in wetlands and retention basins (or request the structure’s owners to perform this task). In some sensitive habitats and/or where sensitive species concerns exist, vegetation removal and maintenance actions would be restricted to those months or times of the year that minimize disturbance/impacts.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Tools ranging from shovels and pruners to chain saws and “weed-whackers” up to heavy equipment such as an ARGO or airboat can all be used at times to clear or move through plant matter that either prevent access to mosquito breeding sites or that prevent good water management practices that would minimize mosquito populations. Strict adherence to bird nesting parameters is observed. Generally, however, SCCMVC “brushing” activities rely almost entirely on hand tools. Trimmed vegetation is either removed and disposed of properly from the site or broadcast in such a way as to minimize visual degradation of the habitat. SCCMVC engages in coordination with landowners, and the acquisition of necessary permits is completed before any work is undertaken. Follow-up surveys are also conducted to verify that the work undertaken was effective and that the physical manipulation of the vegetation did not result in any unintended overall habitat degradation.

The Division is organized into three principal sections to accomplish integrated Vector Management (IVM). First, the administration provides leadership, expertise, public relations/education, and interface with other governmental authorities.

Second, the operations program of the Division includes technicians who perform IVM in the field.

Each technician is assigned a zone of operation, with the technician responsible for service requests and control activities in his or her area. Due to the independent nature of their job duties, certification and training are provided to technicians through the collaborative state-wide continuing education program which is overseen by the California Department of Public Health.

Technicians perform visual surveillance by responding to resident complaints and by extensive examination of vector breeding habitats. In addition, technicians monitor their areas to be sure that their control efforts have been successful.

Finally, the surveillance program provides oversight of safety and personal protection, supplements surveillance performed by technicians with advanced trapping techniques, interacts with local government agencies for long-term reduction of vector sources, and performs operational research in support of IVM. Training programs are conducted for the safe use of equipment, lab work, machinery, or tools and the safe use and disposal of pesticides.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Chemical Control
When pesticides are necessary for use as part of the SCCMVC’s IVM program, inventory consists of products that are naturally derived, organic, and/or highly specific to the target pest. The pesticides are applied according to label requirements to ensure the safety of the applicators, the environment, and the public. The active ingredients used in these formulations are applied at low concentrations and thus minimize impacts on non-target organisms from acute and/or chronic exposures. Manufacturers carefully establish application amounts mandated by product use requirements for treatment efficacy and low potential risk to non-target organisms. The active ingredients of modern mosquito control products and those used by SCCMVC are substantially below the thresholds used for toxicity studies in the laboratory. The pesticides SCCMVC selects are designed to degrade rapidly in the environment, thereby reducing the opportunity for residual presence and environmental persistence. Additionally, mosquito control products are rotated, which is a responsible step in the IVM process to prevent and limit pesticide resistance in local pest populations.

Best Management Practices
SCCMVC has implemented a number of procedures and practices under current Program activities that would continue for the division. These Best Management Practices (BMPs) represent measures to avoid, minimize, eliminate, rectify, or compensate for potential adverse effects on the human, biological, and physical environments and Division Staff. While similar to mitigation measures under CEQA, these BMPs are already in use and will continue to be used as part of the Program.
 Conduct Regular Surveillance: Monitor mosquito populations and disease presence to inform control measures.
 Eliminate Standing Water: Remove or treat water sources to prevent mosquito breeding.
 Apply Larvicides Judiciously: Use EPA-registered larvicides in standing water that cannot be removed.
 Use Biological Control Agents: Introduce natural predators to reduce mosquito larvae populations.
 Engage in Public Education: Inform the community about mosquito prevention and control practices.
 Evaluate and Adapt Control Strategies: Regularly assess the effectiveness of control measures and adjust as necessary.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

The Division will observe all state and federal regulations. The Division will follow all appropriate laws and regulations pertaining to the use of pesticides and herbicides and safety standards for employees and the public, as governed by the USEPA, CDPR, and local jurisdictions (with some exceptions). Although the products the Division uses are all tested, registered, and approved for use by the USEPA and/or CDPR, Divisions provide additional margins of safety with the adherence to additional internal guidance based on BMPs and the principles embodied in Division IVM policies, where applicable.
 Ensure all Division and contracted applicators are appropriately licensed by the state.  Division staff or contractors will coordinate with the County Agricultural Commissioner, and obtain and verify all required licenses and permits as current prior to pesticide/herbicide application.
 All applicators and handlers will use proper personal protective equipment.

Mosquito Adulticides
The Division maintains the capability to implement aerosolized insecticide applications for adult mosquito control when necessary to protect public health. While this method is not currently in use, it may be employed in the future if conditions warrant. Any such application would require prior approval from the Santa Cruz County Board of Supervisors.

Mosquitoes
Risk assessment: Historically, Culex tarsalis and Culex pipiens have been abundant in Santa Cruz County. The great vector potential of these species identifies them as the principal mosquito species of concern. Culiseta spp., particularly Culiseta inornata, is widespread in the County, occurring in many kinds of habitats throughout the year. However, tests of their ability to transmit viral pathogens show them to be of little significance as vectors.

Surveillance: Surveillance of mosquitoes is accomplished by using a combination of methods.

First, technicians and surveillance staff actively examine potential sites by sampling mosquito habitats and collecting larvae, and then laboratory staff identifies the larvae to species. Second, individual residents and property owners call SCCMVC with complaints about bites or potential larval sites. Finally, various traps (light traps, carbon dioxide-baited traps, foul water (gravid), and red box traps are used to collect adult mosquitoes. The adults are collected weekly and/or biweekly and are subsequently classified and identified as species. (As described below) During the warm months, additional temporary staff is hired to help inspect and treat tens of thousands of sources throughout the county. Catch basins in particular can produce Culex pipiens in great numbers at locations close to residences and businesses.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Viruses transmitted by mosquitoes are surveyed by testing mosquitoes, as well as the avian reservoirs and humans. Viral tests of mosquitoes or birds are performed by the California Department of Public Health or the Davis Arbovirus Research and Training Laboratory.

Control: SCCMVC currently uses four principal control materials to kill mosquito larvae. The toxins of the naturally occurring bacteria Bacillus thuringiensisisraelensis (Bti) can be applied as either a liquid or a granule. Bti has the tremendous advantage of specificity, only affecting mosquitoes and related groups of flies. The spores of Bacillus sphaericus (Bs) are also available in liquid spray or granular application. This product has the advantage over Bti of reproducing in the water, extending the life of its effectiveness. Bs is only effective against the Culex species of mosquitoes and works well in highly polluted water. Methoprene is an analog for natural insect hormone that prevents the successful completion of mosquito development. It is available as a liquid and longer-acting granules and briquettes. Spinosad, a naturally derived bacterial insecticide, is also used to target mosquito larvae by disrupting their nervous system. Finally, the Division uses monomolecular surface oil to suffocate immature mosquitoes when they are found in appropriate water bodies.

Larvicides are applied when the chemical control criteria for mosquito larvae are present and application rates vary according to time of year, water temperature, the level of organic content in the water, the type of mosquito species present, larval density, and other variables.

Additionally, the Division utilizes essential oil-based larvicidal products as part of its integrated mosquito control strategy. Larvicide applications may be repeated at any site at recurrence intervals ranging from annually to weekly.

Larvicides the Division routinely uses include:

Bti is a biological larvicide. Bti is a bacterium that is ingested by mosquito larvae and that disrupts their gut lining, leading to death before pupation. The Division applies Bti as a liquid or bonded to an inert substrate (sand or corncob granules) to assist penetration of vegetation. Persistence is low in the environment, and efficacy depends on careful timing of application to coincide with periods in the life cycle when larvae are actively feeding. Pupae and late-stage larvae do not feed and, therefore, will not be controlled by Bti. Low water temperature inhibits larval feeding behavior, reducing the effectiveness of Bti during very cold periods. High organic conditions also reduce the effectiveness of Bti. Therefore, the use of Bti requires frequent inspections of larval sources during periods of larval production and may require frequent applications of material.

Application can be by hand, from an ATV, from a watercraft, or aircraft (helicopter).  Bs is a biological larvicide. Bs is a bacterium that when ingested by mosquito larvae produces microbial gut toxins that destroy the insect gut wall, leading to paralysis and death. Bs is a biological larvicide the Division applies as a liquid or bonded to an inert substrate (corncob granule) to assist penetration of vegetation. The mode of action is similar to that of Bti, but Bs may be used more than Bti in some sites because of its Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

higher effectiveness in water with higher organic content and residual properties that allow longer larvicidal action. Persistence is low in the environment, and efficacy depends on careful timing of application to coincide with periods in the life cycle when larvae are actively feeding. Pupae and late 4th stage larvae do not feed and, therefore, will not be controlled by Bs. Low water temperature inhibits larval feeding behavior, reducing the effectiveness of Bs during very cold periods. Bs is also ineffective against certain mosquito species such as those in the genus Aedes. Knowing the stage and species present can increase the effectiveness of this material, restricting it to sources containing susceptible species. Therefore, the use of Bs requires frequent inspections of larval sources during periods of larval production and may require frequent applications of the material. The application can be by hand, from an ATV, from a watercraft, or from an aircraft (helicopter).
 Spinosad is an Omri-Listed Dow AgroSciences active ingredient that is a fermentation product of bacteria first discovered in an old rum distillery. Spinosad is a fermentation product of the naturally occurring soil bacterium Saacharopolysporaspinosa. It causes excitation of the mosquito’s nervous system, ultimately leading to paralysis and death.

This mode of action makes this pesticide a good option for rotational use in the prevention of resistance. Its action on the target organism is either by contact or by ingestion, and as with other bacterial larvicides, activity can be reduced in highly organic water. The Division applies Spinosad as a liquid or as a sustained-release product that can persist for up to 30 or 180 days. It is applied either in response to high observed populations of mosquito larvae at a site or as a sustained-release product that can persist for up to about 4 months. This product has a very low potential for accumulation in soil or groundwater contamination. Application can be performed by hand, from an ATV, from a watercraft, or aircraft.
 Methoprene, common brand names known as Altosid and Metalarv, is a synthetic juvenile hormone that is designed to disrupt the transformation of a juvenile mosquito into an adult. Methoprene products must be applied (or present, if using a slow-release formula) to the late instar (e.g., third and fourth) and/or pupal stages of mosquitoes. It is not effective against other life stages. Methoprene can be applied in granular, liquid, pellet, or briquet formulations. Sustained-release products can persist for up to 30 or 150 days. The application can be performed by hand, from an ATV, from a watercraft, or aircraft.
 BVA-2 Larvicide is a highly refined petroleum distillate (mineral oil). These new larvicides demonstrate a low level of toxicity to plant growth (phytotoxicity) and rapid environmental breakdown. BVA-2 larvicide oil has a water-white clear color and is also practically odorless. It forms a thin film on water and kills larvae through suffocation and/or direct toxicity. It is typically applied at application rates of 3 to 5 gallons per acre and can be applied by hand, from an ATV, from a watercraft, or a truck.  Depending on emerging risks and vectors, SCCMVC may use alternative Larvicides.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

The Division uses the mosquito fish, Gambusia affinis, as a form of biological control. These work particularly well during warm weather in decorative ponds, swimming pools, and other man-made bodies of water. Mosquito fish can be used in combination with Bti, Bs, and methoprene in a process sometimes referred to as Integrated Biological Control.

Surveillance
Monitoring: Monitoring is an extension of surveillance activities. Technicians specifically re-check treatment sites to be sure that applications are successful. Surveillance personnel deploy carbondioxide baited traps, light traps, foul-water traps, and BG-Sentinel traps (designed to attract and capture container-breeding mosquitoes, especially Aedes aegypti and Aedes albopictus) to evaluate the success of the program.

Surveillance involves monitoring the abundance of mosquito populations, their habitat, mosquito-borne disease pathogens, and the interactions between mosquitoes and people over time and space. The Division routinely uses a variety of traps for surveillance of adult mosquitoes, regular field investigation of known mosquito sources for direct sampling for immature stages, public service requests for adult mosquitoes, and Argo all-terrain vehicles and airboats to access remote and difficult-to-reach mosquito habitats as part of its comprehensive surveillance efforts.

The Division conducts surveillance by way of a variety of activities that include but are not limited to:
 Field counting/sampling and use of trapping, along with the laboratory analysis of mosquitoes, their hosts, and pathogens to evaluate population densities and potential disease threats such as WNV, WEE, and SLE. Sampling of presence and abundance of mosquito populations tends to occur in areas where the citizenry would have a likelihood of exposure to them; field counts take place both at immature and adult stages of mosquito development or life cycle. Three kinds of traps, host-seeking traps, light traps, and gravid/oviposition traps, are used as described below:
i. Host-seeking traps use dry ice (carbon dioxide) to attract female mosquitoes behaviorally cued to seek a host to blood feed. The trap’s components include a dry ice container, a battery power source, a low ampere motor/fan combination, an LED light source, and a collection container for holding captured adults. ii. Oviposition traps are used to collect gravid Aedes and Culex spp. mosquitoes and/or to measure their egg-laying activity. As an example, they may use 5-day-old hayinfused water contained in a small plastic dishpan that has a battery-operated fan directly above to draw the gravid female mosquitoes into the small collection net.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Mosquito immatures include eggs, four larval stages, and a transitional pupal stage. Mosquito control agencies routinely target the larval and pupal stages to preclude the emergence of adults.

Operation evaluation of the presence and abundance of immature mosquitoes is limited to the larval and pupal stages, although the Division may sample eggs for research reasons. Sampling and collection of the immature stages (egg, four larval stages, and a transitional pupal stage) involves the use of a 1-pint dipper (a standardized small plastic pot or cup-like container on the end of a 36-inch handle), which scoops up a small amount of water from the mosquito-breeding site. Operationally, the abundance of the immatures in any identifiable “breeding” source is measured through direct sampling, which provides relative local abundance as the number of immatures per unit volume or area of the source. This method requires access by field personnel to within about 3 feet of larval sites at least every 2 weeks in warm weather. The spatial patchiness of larvae requires access to multiple locations within each source, rather than to single “bellweather” stations.  “Arbovirus”1F
2 surveillance to determine the likelihood and occurrence of mosquito-borne illness is accomplished by two methods commonly used in California: (1) capturing and testing female vector mosquitoes for the presence of mosquito-borne encephalitis viruses as explained above and (2) periodic testing for the presence of encephalitis virus-specific antibodies in the blood serum of either sentinel chickens or wild birds. The first method involves the use of host-seeking traps to capture female vector mosquitoes. Captured females are sorted into groups of up to 50 (called pools) and submitted to the Davis Arbovirus and Research and Training Laboratory at the University of California, Davis to test for the presence of mosquito-borne viruses. Field inspection of known or suspected habitats where mosquitoes live and breed. Sites, where water can collect, be stored, or remain standing for more than a few days, are potential habitats for mosquito breeding that require continuous inspection and surveillance.

Water runoff into catch basins and stormwater detention systems from land uses including, but not limited to, residential communities, parks and recreation areas, and industrial sites, as well as ornamental ponds, unmaintained swimming pools, seeps/seepages, seasonal wetlands, tidal and diked marshes, freshwater marshes, wastewater ponds, sewer plants, winery waste/agricultural ponds, managed waterfowl ponds, canals, creeks, streams, tree holes, tires, man-made containers, flooded basements/crawl spaces, and other standing waters are likely sources.  Maintenance of paths and clearings to facilitate sampling and to provide access to vector habitat. It is Division policy that staff manages vegetation periodically for accessibility to water bodies and use preexisting roads, trails, walkways, and open areas to conduct routine and essential surveillance activities with the least impact on the 2 Arthropod-borne viruses. The primary reservoir for the pathogens that cause these diseases is wild birds, and humans only become exposed as a consequence of an accidental exposure to the bite of infective mosquito vectors.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

environment. Surveillance is conducted using ATVs, but offroad access is minimized and used only when roads and trails are not available. Some access for inspection is conducted on foot.
 Additionally, the Division conducts dead-bird collection and testing as part of its arbovirus surveillance program to detect and monitor mosquito-borne viruses in the environment.

Analysis of public service requests and surveys and other methods of data collection. The Division’s mosquito surveillance activities are conducted in compliance with accepted federal and state guidelines, in particular the California Mosquito-borne Virus Surveillance and Response Plan (CDPH 2010a) and Best Management Practices for Mosquito Control in California (CDPH 2010b).

These guidelines recognize that local conditions will necessarily vary and, thus, call for flexibility in selection and specific application of control methods.

Public Relations, Outreach, and Education
The Division does not have a dedicated public relations position; instead, all staff actively participate in community outreach efforts. Team members engage with the public through events such as school presentations and informational booths, including those at the annual Santa Cruz County Fair. The Division collaborates closely with the County Public Information Officer (PIO) to distribute press releases, manage social media communications, and respond promptly to media inquiries. These coordinated efforts ensure that accurate and timely information about mosquito and vector control is effectively communicated to the public, promoting awareness and encouraging community participation in prevention activities.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Estimate of Costs and Budget
Figure 1 – Cost Estimate – FY 2026-27 Budget
Preliminary Budget
Mosquito & Vector Control Services and Related Expenditures Salaries and Benefits $ 1,918,899
$ 401,410
Capital Replacement $ 500,000
Total Mosquito Control Services and Related Expenditures $ 2,820,309 Incidental Costs1
$ 65,546
Total Incidental Costs $ 65,546
Total Benefit of Services and Related Expenses $ 2,885,855 Less Contributions from other Sources (i.e. current budget)2 CSA 53 Mosquito Abatement/Vector Control Assessment $ 289,495 CSA 53 North and South Assessments $ 1,478,062
Total Contributions from other Sources $ 1,767,557
Total Mosquito, Vector and Disease Control Services and Incidentals $ 1,118,297 (Net Amount to be Assessed)
Budget Allocation to Property
Zones of
Benefit
Total SFE
Units3
Assessment
per SFE4
Total
Assessment5
Zone A 92044.2 $11.99 $1,103,610
Zone B 1256.4 $11.69 $14,687
Total 93300.6 - $1,118,297
Santa Cruz Mosquito and Vector Control Division
Mosquito, Vector and Disease Control Assessment
Estimate of Cost - Fiscal Year 2026-27
Services and Supplies
Levy Administration, County Collection Fee, and Other Incidentals Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Notes:

1. As determined in the following section, at least 5% of the cost of the Services must be funded from sources other than the assessments to account for general benefits. Based on the total cost of the Services of $2,885,855 the Division must contribute at least $144,293 from non-assessment sources. The Division will contribute more than this minimum requirement, thereby covering all general benefits associated with the Services. This contribution also offsets the minimal baseline mosquito and vector control services currently provided in the Assessment Area.

2. Incidental Costs include allowance for uncollectible assessments from assessments on public agency parcels, County collection charges, and assessment administration costs.

3. SFE Units means Single Family Equivalent benefit units. See the method of assessment in the following Section for further definition.

4. The assessment rate per SFE is the total amount of assessment per Single Family Equivalent benefit unit.

5. Funds raised by the assessment shall be used only for the purposes stated within this Report. Any balance remaining at the end of the fiscal year, June 30, must be carried over to the next fiscal year. The assessment amounts are rounded down to the even penny for purposes of complying with the collection requirements from the County Auditor. Therefore, the total assessment amount for all parcels subject to the assessments may vary slightly from the net amount to be assessed.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Method of Assessment
This section of the Report explains the benefits to be derived from the Services to be provided for property in the Assessment Area, and the methodology used to apportion the total assessment to properties within the Mosquito, Vector and Disease Control Assessment Area.

The Mosquito, Vector and Disease Control Assessment District area consists of the Assessor Parcels in the Santa Cruz County Mosquito, Disease and Vector Control Division boundaries, as defined within the area of the boundary diagram included within this Engineer’s Report (see the Assessment Roll for a list of all the parcels included in the Mosquito, Vector and Disease Control Assessment).

The method used for apportioning the assessment is based upon the proportional special benefits to be derived by the properties in the Assessment Area over and above general benefits conferred on real property in the assessment area or to the public at large. Special benefit is calculated for each parcel in the Assessment Area.

1. Identification of total benefit to the properties derived from the Services

2. Calculation of the proportion of these benefits that are special vs. general

3. Determination of the relative special benefit within different areas within the Assessment Area

4. Determination of the relative special benefit per property type and property characteristic

5. Calculation of the specific assessment for each individual parcel based upon special vs. general benefit; location, property type and property characteristics Discussion of Benefit
In summary, the assessments can only be levied based on the special benefit to property. This special benefit is received by property over and above any general benefits from the Services.

With reference to the engineering requirements for property related assessments, under Proposition 218, an Engineer must determine and prepare a report evaluating the amount of special and general benefit received by property within the Assessment Area as a result of the improvements or services provided by a local agency. The special benefit is to be determined in relation to the total cost to that local entity of providing the service and/or improvements.

Proposition 218 as described in Article XIIID of the California Constitution has confirmed that assessments must be based on the special benefit to property:

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

"No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel." The below benefit factors, when applied to property in the Assessment Area, confer special benefits to property and ultimately improve the safety, utility, functionality, and usability of property in the Assessment Area. These are special benefits to property in the Assessment Area in much the same way that storm drainage, sewer service, water service, sidewalks, and paved streets enhance the utility and functionality of each parcel of property served by these improvements, providing them with more utility of use and making them safer and more usable for occupants.

It should also be noted that Proposition 218 includes a requirement that existing assessments in effect upon its effective date were required to be confirmed by either a majority vote of registered voters in the assessment area or by weighted majority property owner approval using the new ballot proceeding requirements. However, certain assessments were excluded from these voter approval requirements. Of note is that in California Constitution Article XIIID Section 5(a) this special exemption was granted to assessments for sidewalks, streets, sewers, water, flood control, drainage systems and vector control. The Howard Jarvis Taxpayers Association explained this exemption in their Statement of Drafter’s Intent:
“This is the "traditional purposes" exception. These existing assessments do not need property owner approval to continue. However, future assessments for these traditional purposes are covered.”2F
3 Therefore, the drafters of Proposition 218 acknowledged that vector control assessments were “traditional” and therefore acknowledged and accepted use.

Since all assessments, existing before or after Proposition 218 must be based on special benefit to property, the drafters of Proposition 218 impliedly found that vector control services confer special benefit on property. Moreover, the statement of drafter’s intent also acknowledges that any new or increased vector control assessments after the effective date of Proposition 218 would need to comply with the voter approval requirements it established. This is as an acknowledgment that additional assessments for such “traditional” purposes would be established after Proposition 218 was in effect. Therefore, the drafters of Proposition 218 clearly recognized vector assessments as a “traditional” use of assessments, acknowledged that new vector assessments may be formed after Proposition 218 and impliedly were satisfied that vector control services confer special benefit to properties.
3 Howard Jarvis Taxpayers Association, “Statement of Drafter’s Intent”, January 1997.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

The Legislature also made a specific determination after Proposition 218 was enacted that vector control services constitute a proper subject for special assessment. Health and Safety Code section 2082, which was signed into law in 2002, provides that a district may levy special assessments consistent with the requirements of Article XIIID of the California Constitution to finance vector control projects and programs. The intent of the Legislature to allow and authorize benefit assessments for vector control services after Proposition 218 is shown in the Assembly and Senate analysis the Mosquito Abatement and Vector Control District Law where it states that the law:

Allows special benefit assessments to finance vector control projects and programs, consistent with Proposition 218.3F
4 Therefore, the State Legislature unanimously indicated that vector control services are a valuable and important public service that can be funded by benefit assessments. To be funded by assessments, vector control services must confer special benefit to property.

Mosquito and vector control is a Special Benefit to Properties As described below, this Engineer’s Report concludes that mosquito and vector control is a special benefit that provides direct advantages to property in the Assessment Area. For example, if approved, the assessment would provide for 1) surveillance throughout the Assessment Area to measure and track the levels and sources of mosquitoes impacting property in the area and the people who live and work on the property; 2) mosquito and mosquito source control, treatment and abatement throughout the Assessment Area such that all property in the area benefits from a comparable reduction of mosquito levels; 3) monitoring throughout the Assessment Area to evaluate the effectiveness of District treatment and control and to ensure that all properties are receiving the equivalent level of mosquito reduction benefits; and 4) service requests which result in District staff directly visiting, inspecting and treating property.

The services to be provided by the District will be provided throughout the Assessment Area, that is, the benefit received in the Assessment Area will be District-wide. All property will receive benefits from the comprehensive mosquito, vector and disease monitoring, control, and prevention services.

Moreover, the Services funded by the Assessments will reduce the level of mosquitoes and vectors arriving at and negatively impacting properties within the Assessment District. 4 Senate Bill 1588, Mosquito Abatement and Vector Control District Law, Legislative bill analysis Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

The following section, Benefit Factors, describes how the Services would specially benefit properties in the Assessment District. These benefits are particular and distinct from their effect on property in general or the public at large.

Benefit Factors
In order to allocate the assessments, the Engineer identified the types of special benefit arising from the Services and that will be provided to property within the Assessment Area. These types of special benefit are as follows:

Reduced mosquito and vector populations on property and as a result, enhanced desirability, utility, usability and functionality of property in the Assessment Area.

The assessments will provide new and enhanced services for the control and abatement of nuisance and disease-carrying mosquitoes and other vectors. These Services will materially reduce the number of vectors on properties throughout the Assessment Area. The lower mosquito and vector populations on property in the Assessment Area are a direct advantage to property that will serve to increase the desirability and “usability” of property. Clearly, properties are more desirable and usable in areas with lower mosquito populations and with a reduced risk of vector-borne disease. This is a special benefit to residential, commercial, agricultural, industrial, and other types of properties because all such properties will directly benefit from reduced mosquito and vector populations and properties with lower vector populations are more usable, functional, and desirable.

Excessive mosquitoes and other vectors in the area can materially diminish the utility and usability of property. For example, prior to the commencement of mosquito control and abatement services, properties in many areas in the State were considered to be nearly uninhabitable during the times of year when the mosquito populations were high.4F 5 The prevention or reduction of such
diminished utility and usability of property caused by mosquitoes is a clear and direct advantage and special benefit to property in the Assessment Area.

The State Legislature made the following finding on this issue:
“Excess numbers of mosquitoes and other vectors spread diseases of humans, livestock, and wildlife, reduce enjoyment of outdoor living spaces, both public and private, reduce 5 Prior to the commencement of modern mosquito control services, areas in the State of California such as the San Mateo Peninsula, Napa County and areas in Marin and Sonoma Counties had such high mosquito populations that they were considered to be nearly unlivable during certain times of the year and were largely used for part-time vacation cottages that were occupied primarily during the months when the natural mosquito populations were lower.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

property values, hinder outdoor work, reduce livestock productivity; and mosquitoes and other vectors can disperse or be transported long distances from their sources and are, therefore, a health risk and a public nuisance; and professional mosquito and vector control based on scientific research has made great advances in reducing mosquito and vector populations and the diseases they transmit.” 5F
6 Mosquitoes and other vectors emerge from sources throughout the Assessment District, and with an average flight range of two miles, mosquitoes from known sources can reach all properties in the Assessment District. These sources include standing water in rural areas, such as marshes, pools, wetlands, ponds, drainage ditches, drainage systems, tree holes and other removable sources such as old tires and containers. The sources of mosquitoes also include numerous locations throughout the urban areas in the Assessment District. These sources include underground drainage systems, containers, unattended swimming pools, leaks in water pipes, tree holes, flower cups in cemeteries, over-watered landscaping and lawns and many other sources. By controlling mosquitoes at known and new sources, the Services will materially reduce mosquito populations on property throughout the Assessment District.

A recently increasing source of mosquitoes is unattended swimming pools:
“Anthropogenic landscape change historically has facilitated outbreaks of pathogens amplified by peridomestic vectors such as Cx. pipiens complex mosquitoes and associated commensals such as house sparrows. The recent widespread downturn in the housing market and increase in adjustable rate mortgages have combined to force a dramatic increase in home foreclosures and abandoned homes and produced urban landscapes dotted with an expanded number of new mosquito habitats. These new larval habitats may have contributed to the unexpected early season increase in WNV cases in Bakersfield during 2007 and subsequently have enabled invasion of urban areas by the highly competent rural vector Cx. tarsalis. These factors can increase the spectrum of competent avian hosts, the efficiency of enzootic amplification, and the risk for urban epidemics.”6F 7 6 Assembly Concurrent Resolution 52, chaptered April 1, 2003 7 Riesen William K. (2008). Delinquent Mortgages, Neglected Swimming Pools, and West Nile Virus, California. Emerging Infectious Diseases.Vol. 14(11).

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Increased safety of property in the Assessment Area.

The Assessments will result in new year-round proactive Services to control and abate mosquitoes and other vectors that otherwise would occupy properties throughout the Assessment Area.

Mosquitoes and other vectors are transmitters of diseases, so the reduction of mosquito and other vector populations makes property in the Assessment Area safer for use and enjoyment. In absence of these assessments, these Services would not be provided, or provided on a very limited basis, so the Services funded by the assessments make properties in the Assessment Area safer, which is a distinct special benefit to property in the Assessment Area.7F 8 This is not a general
benefit to property in the Assessment Area or the public at large because the Services are tangible mosquito, vector and disease control services that will be provided directly to the properties in the Assessment Area, and the Services are over and above the baseline services that could be provided by the Santa Cruz County Mosquito Abatement without the assessment.

This finding was confirmed in 2003 by the State Legislature:
“Mosquitoes and other vectors, including but not limited to, ticks, Africanized honey bees, rats, fleas, and flies, continue to be a source of human suffering, illness, death, and a public nuisance in California and around the world. Adequately funded mosquito and vector control, monitoring and public awareness programs are the best way to prevent outbreaks of West Nile Virus and other diseases borne by mosquitoes and other vectors.”8F 9 Also, the Legislature, in Health and Safety Code Section 2001, finds that:
“The protection of Californians and their communities against the discomforts and economic effects of vector borne diseases is an essential public service that is vital to public health, safety, and welfare.”
8 . By reducing the risk of disease and increasing the safety of property, the Services will materially increase the usefulness and desirability of certain properties in the Assessment Areas. 9 Assembly Concurrent Resolution 52, chaptered April 1, 2003 Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Reductions in the risk of new diseases and infections on property in the Assessment Area.

Mosquitoes have proven to be a major contributor to the spread of new diseases such as West Nile Virus, among others. A highly mobile population combined with migratory bird patterns can introduce new mosquito-borne diseases into previously unexposed areas. “Vector-borne diseases (including a number that are mosquito-borne) are a major public health problem internationally. In the United States, dengue and malaria are frequently brought back from tropical and subtropical countries by travelers or migrant laborers, and autochthonous transmission of malaria and dengue occasionally occurs. In 1998, 90 confirmed cases of dengue and 1,611 cases of malaria were reported in the USA and dengue transmission has occurred in Texas.”9F
10 “During 2004, 40 states and the District of Columbia (DC) have reported 2,313 cases of human WNV illness to CDC through ArboNET. Of these, 737 (32%) cases were reported in California, 390 (17%) in Arizona, and 276 (12%) in Colorado. A total of 1,339 (59%) of the 2,282 cases for which such data were available occurred in males; the median age of patients was 52 years (range: 1 month--99 years). Date of illness onset ranged from April 23 to November 4; a total of 79 cases were fatal.” 10F
11 (According to the Centers for Disease
Control and Prevention on January 19, 2004, a total of 2,470 human cases and 88 human fatalities from WNV have been confirmed).

A study of the effect of aerial spraying conducted by the Sacramento-Yolo Mosquito and Vector Control District (SYMVCD) to control a West Nile Virus disease outbreak found that the SYMVCD’s mosquito control efforts materially decreased the risk of new diseases in the treated areas:

After spraying, infection rates decreased from 8.2 (95% CI 3.1–18.0) to 4.3 (95% CI 0.3–

20.3) per 1,000 females in the spray area and increased from 2.0 (95% CI 0.1–9.7) to 8.7 (95% CI 3.3–18.9) per 1,000 females in the untreated area. Furthermore, no additional positive pools were detected in the northern treatment area during the remainder of the year, whereas positive pools were detected in the untreated area until the end of September (D.-E.A Elnaiem, unpub. data). These independent lines of evidence corroborate our conclusion that actions taken by SYMVCD were effective in disrupting the WNV transmission cycle and reducing human illness and potential deaths associated with WNV.11F
12 10 Rose, Robert. (2001). Pesticides and Public Health: Integrated Methods of Mosquito Management.

Emerging Infectious Diseases. Vol. 7(1); 17-23. 11Center for Disease Control.(2004). West Nile Virus Activity --- United States, November 9--16, 2004.Morbidity and Mortality Weekly Report. 53(45); 1071-1072. 12 Carney, Ryan. (2008), Efficiency of Aerial Spraying of Mosquito Adulticide in Reducing the Incidence of West Nile Virus, California, 2005. Emerging Infectious Diseases, Vol 14(5) Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

The Services funded by the assessments will help prevent, on a year-round basis, the presence of vector-borne diseases on property in the Assessment Area. This is another tangible and direct special benefit to property in the Assessment Area that would not be received, or received only minimally, in the absence of the assessments.

Protection of economic activity on property in the Assessment Area.

As demonstrated by the SARS outbreak in China and outbreaks of Avian Flu, outbreaks of pathogens can materially and negatively impact economic activity in the affected area. Such outbreaks and other public health threats can have a drastic negative effect on tourism, business and residential activities in the affected area. The assessments will help prevent the likelihood of such outbreaks in the Assessment Area.

Mosquitoes hinder, annoy and harm residents, guests, visitors, farm workers, and employees. A vector-borne disease outbreak and other related public health threats would have a drastic negative effect on agricultural, business, and residential activities in the Assessment Area.

The economic impact of diseases is well documented. According to a study prepared for the Centers for Disease Control and Prevention, economic losses due to the transmission of West Nile Virus in Louisiana was estimated to cost over $20 million over approximately one year:

The estimated cost of the Louisiana epidemic was $20.1 million from June 2002 to February 2003, including a $10.9 million cost of illness ($4.4 million medical and $6.5 million nonmedical costs) and a $9.2 million cost of public health response. These data indicate a substantial short-term cost of the WNV disease epidemic in Louisiana. 12F 13 13Zohrabian A, Meltzer MI, Ratard R, Billah K, Molinari NA, Roy K, et al. West Nile Virus economic impact, Louisiana, 2002. Emerging Infectious Disease, 2004 Oct. Available from http://www.cdc.gov/ncidod/EID/vol10no10/03-0925.htm
Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Moreover, a study conducted in 1996-97 of La Crosse Encephalitis (LACE), a human illness caused by a mosquito-transmitted virus, found a lifetime cost per human case at $48,000 to $3,000,000 and found that the disease significantly impacted lifespans of those who were infected. Following is a quote from the study which references the importance and value of active vector control services of the type that would be funded by the assessments:

The socioeconomic burden resulting from LACE is substantial, which highlights the importance of the illness in western North Carolina, as well as the need for active surveillance, reporting, and prevention programs for the infection. 13F 14 The Services to be funded by the assessments will help prevent the likelihood of such outbreaks on property in the Assessment Area and will reduce the harm to economic activity on property caused by existing mosquito populations and other vectors. This is another direct advantage in the Assessment Area that would not be received, or received minimally, in absence of the assessments.

Protection of the Assessment Areas’ agriculture, tourism, and business industries.

The agriculture, tourism and business industries in the Assessment Area will benefit from reduced levels of harmful or nuisance mosquitoes and other vectors. Conversely, any outbreaks of emerging vectorborne pathogens such as West Nile Virus could also materially negatively affect these industries. Diseases transmitted by mosquitoes and other vectors can adversely impact business and recreational functions.

A study prepared for the United States Department of Agriculture in 2003 found that over 1,400 horses died from West Nile Virus in Colorado and Nebraska and that these fatal disease cases created over $1.2 million in costs and lost revenues. In addition, horse owners in these two states spent over $2.75 million to vaccinate their horses for this disease. The study states that “Clearly, WNV has had a marked impact on the Colorado and Nebraska equine industry.” 14F
15 Pesticides for mosquito control impart economic benefits to agriculture in general.

Anecdotal reports from farmers and ranchers indicate that cattle, if left unprotected, can 14Utz, J. Todd, Apperson, Charles S., Maccormack, J. Newton, Salyers, Martha, Dietz, E. Jacquelin, Mcpherson, J. Todd, Economic And Social Impacts Of La Crosse Encephalitis In Western North Carolina, Am J Trop Med Hyg 2003 69: 509-518 15 S. Geiser, A. Seitzinger, P. Salazar, J. Traub-Dargatz, P. Morley, M. Salman, D. Wilmot, D. Steffen, W.

Cunningham, Economic Impact of West Nile Virus on the Colorado and Nebraska Equine Industries: 2002, April 2003, Available from
http://www.aphis.usda.gov/vs/ceah/cnahs/nahms/equine/wnv2002_CO_NB.pdf Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

be exsanguinated by mosquitoes, especially in Florida and other southeast coastal areas.

Dairy cattle produce less milk when bitten frequently by mosquitoes. 15F 16 The assessments will serve to protect the businesses and industries in the Assessment Area. This is a direct advantage and special benefit to property in the Assessment Area.

Reduced risk of nuisance and liability on property in the Assessment Area.

In addition to health-related factors, uncontrolled mosquito and vector populations create a nuisance for residents, employees, customers, tourists, farm workers, and guests in the Assessment Area. Properties in the Assessment Area benefit from the reduced nuisance factor that will be created by the Services. Agricultural and rangeland properties also benefit from the reduced nuisance factor and harm to livestock and employees from lower mosquito and vector populations.

Agricultural, range, golf courses, cemeteries, open spaces, and other such lands in the Assessment Area contain large areas of mosquito and vector habitat and are therefore a significant source of mosquito and vector populations. In addition, residential and business properties in the Assessment Area can also contain significant sources.16F 17 It is conceivable that sources of
mosquitoes could be held liable for the transmission of diseases or other harm. For example, in August 2004, the City of Los Angeles approved new fines of up to $1,000 per day for property owners who don’t remove standing water sources of mosquitoes on their property.

The Services to be provided by the Division will reduce the mosquito and vector-related nuisance and health liability to properties in the Assessment Area. The reduction of that risk of liability constitutes a special benefit to property in the Assessment Area and this special benefit would not be received, or only received minimally, in the absence of the Services funded by the assessments.
16 . Jennings, Allen. (2001). USDA Letter to EPA on Fenthion IRED.United States Department of Agriculture, Office of Pest Management Policy. March 8, 2001.
17 . Sources of mosquitoes on residential, business, agricultural, range and other types of properties include removable sources such as containers that hold standing water.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

Improved marketability of property.

As described previously, the Services will specially benefit properties in the Assessment Area by making them more useable, livable, and functional. The Services also make properties in the Assessment Area more desirable, and more desirable properties also benefit from improved marketability. This is another tangible special benefit to certain property in the Assessment Area which will not be enjoyed in absence of the Services.17F 18 Benefit Finding
In summary, the special benefits described in this Report and provision of Services to the Assessment Area (“enhanced level of service”) would directly benefit and protect the real properties in the Assessment Area in excess of the assessments for these properties. Therefore, the Assessment Engineer finds that the cumulative special benefits to property from the Services are reasonably equal to or greater than the proposed assessment of $11.99 per benefit unit or Single Family Equivalent(SFE) for Zone A and $11.69 per SFE for Zone B (Figure 1 – Cost Estimate).

These rates per SFE generate revenues of $1,118,297 which is the amount needed to fund the Division’s budget total of $2,885,855, less the Division contribution of $1,767,557. Further, the Engineer has judged that the special benefit to each parcel reasonably exceeds the assessments imposed on each parcel.
18 . If one were to compare two hypothetical properties with similar characteristics, the property with lower mosquito infestation and reduced risk of vector-borne disease will clearly be more desirable, marketable and usable.

Attachment B

Santa Cruz County Mosquito & Vector Control Division
Mosquito, Vector and Disease Control Assessment
Engineer’s Report, FY 2026-27

General vs. Special Benefit
Article XIIID of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to “separate the general benefits from the special benefits conferred on a parcel.” The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. The assessment can fund the special benefits to property in the assessment area but cannot fund any general benefits. Accordingly, a separate estimate of the special and general benefit is given in this section.

In other words:

There is no widely accepted or statutory formula for general benefit from vector control services.

General benefits are benefits from improvements or services that are not special in nature, are not “particular and distinct” and are not “over and above” benefits received by other properties.

General benefits are conferred to properties located “in the district,”18F 19 but outside the narrowlydrawn Assessment District and to “the public at large.” Silicon Valley provides some clarification by indicating that general benefits provide “an indirect, derivative advantage” and are not necessarily proximate to the improvements and services funded by the assessments. 19Silicon Valley explains as follows:

OSA observes that Proposition 218’s definition of “special benefit” presents a paradox when considered with its definition of “district.” Section 2, subdivision (i) defines a “special benefit” as “a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large.” (Art. XIII D, § 2, subd. (i), italics added.) Section 2, subdivision (d) defines “district” as “an area determined by an agency to contains all parcels which will receive a special benefit from a public improvement or property-related service.” (Art. XIII D, § 2, subd. (d), italics added.) In a well-drawn district — limited to only parcels receiving special benefits from the improvement — every parcel within that district receives a shared special benefit. Under section 2, subdivision (i), these benefits can be construed as being general benefits since they are not “particular and distinct” and are not “over and above” the benefits received by other properties “located in the district.” We do not believe that the voters intended to invalidate an assessment district that is narrowly drawn to include only properties directly benefiting from an improvement. Indeed, the ballot materials reflect otherwise. Thus, if an assessment district is narrowly drawn, the fact that a benefit is conferred throughout the district does not make it general rather than special.

Total
Benefit = General Benefit + Special Benefit
Attachment B