Watsonville City Council
January 13, 2026

1 Reso No. ______ (CM)
Reference: Reso No.s 55-24, 118-25 (Amend)
Meeting Date: 011326 SWZ ______ TV ______ PWU ______
RESOLUTION NO. _______ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING SECOND AMENDMENT TO CONTRACT

BETWEEN THE CITY OF WATSONVILLE AND HARRIS &
ASSOCIATES, INC., A CORPORATION, TO PROVIDE PAVEMENT

PROGRAM MANAGEMENT SERVICES, REVISING SCOPE OF
SERVICES FOR PAVEMENT PROGRAM MANAGER; ADDING
PAVEMENT ENGINEERING, INC. (PEI) AND RUGGERI JENSEN AZAR (RJA) AS SUBCONSULTANTS; AND AUTHORIZING AND DIRECTING

THE CITY MANAGER TO EXECUTE SAME
WHEREAS, on April 9, 2024, Council adopted Resolution No. 55-24 (CM) authorizing the City Manager to execute a contract with Harris & Associates for Pavement Program Management Services; and
WHEREAS, the City and Consultant executed said contract on April 29, 2024, in the amount of $1,275,000 for an initial three-year term to provide pavement program management services; and
WHEREAS, on February 11, 2025, Council adopted Resolution No. 43-25 (CM) and accepted the City of Watsonville 2024 Pavement Management Program Update report prepared by City staff with assistance by Consultant, and accepted the Year 1 Program proposed list of streets for the annual paving project; and WHEREAS, it is the City’s intention to expedite delivery of the Year 1 Program and maintenance of the Year 1 approved list of streets; and WHEREAS, the City has requested support from Consultant to incorporate the preparations of the Plans, Specifications and Estimate (PS&E) for the Year 1 Program proposed list of streets into the Consultant Services Contract to provide Pavement Program Management Services; and
WHEREAS, Consultant has developed a not to exceed budget of $125,556 to

2 Reso No. ______ (CM)
Reference: Reso No.s 55-24, 118-25 (Amend)
Meeting Date: 011326
prepare the PS&E for the Year 1 Program proposed list of streets that is funded under the currently approved Year 1 budget of $425,000 in accordance with the Contract, and incorporation of these services for Year 1 will not require an increase in the compensation to be to paid Consultant; and
WHEREAS, on May 13, 2025, Council adopted Resolution No. 118-25 (CM) and approved First Amendment to Contract, and revised the scope of services for pavement program manager, adding NCE as subconsultant and updating the Engineering Hourly Rates for 2025; and
WHEREAS, Consultant has requested the incorporation of subconsultant services into the Contract performed by 1) PEI for technical in performing pavement evaluation services, and include field testing consisting of deflection testing and pavement coring to determine asphalt layer thickness and provide Consultant with an engineering report summarizing the deflection analysis and provide pavement rehabilitation options, and 2) RJA for technical support in providing a design survey that Consultant will use to develop the design of new curb ramps and curb extensions.

WHEREAS, the Second Amendment to Contract for Consultant Services is in the best interest of the City of Watsonville.

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

1. No additional California Environmental Quality Act (CEQA) review is required for the Pavement Program Management Services. On April 9, 2024, the City Council declared the Pavement Program Management Services as exempt in accordance with CEQA Guidelines Section 15378 (b)(5), as it does not meet CEQA’s definition of a

3 Reso No. ______ (CM)
Reference: Reso No.s 55-24, 118-25 (Amend)
Meeting Date: 011326
“project”. Further, the approval of the Second Amendment to Contract for the Pavement Program Management 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 the environment. Therefore, no CEQA action is required at this time.

2. This Second Amendment to Contract between the City of Watsonville and Harris & Associates, Inc., a corporation, a copy of which is attached hereto and incorporated herein by this reference, is hereby approved.

3. The City Manager is hereby authorized and directed to execute said Second Amendment for and on behalf of the City of Watsonville with minor revisions that may be approved by the City Manager and the City Attorney.
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SECOND AMENDMENT TO CONSULTANT SERVICES CONTRACT

BETWEEN THE CITY OF WATSONVILLE
AND HARRIS & ASSOCIATES, INC.

THIS SECOND AMENDMENT TO CONTRACT for consultant services is entered into by and between the City of Watsonville ("City") and Harris & Associates, Inc. (“Consultant”) this day of _______________________. The City and Consultant agree as follows:

RECITALS
WHEREAS, on April 9, 2024, the City Council adopted Resolution No. 55-24 (CM) authorizing the City Manager to execute a contract with Harris & Associates, Inc. for Pavement Management Services; and
WHEREAS, the City and Consultant have executed a contract in the amount of $1,275,000 for an initial three-year term to provide pavement program management services; and
WHEREAS, on February 11, 2025, the City Council adopted Resolution No. 43-25 (CM) and accepted the City of Watsonville 2024 Pavement Management Program Update report prepared by City staff with assistance by Consultant, and accepted the Year 1 Program proposed list of streets for the annual paving project; and WHEREAS, on May 13, 2025, the City Council adopted Resolution No. 118-25 (CM), approving the First Amendment to Contract and including the preparation of the Pavement Management Program Year 1 plans, specifications and estimate (PS&E), the addition of subconsultant services performed by NCE, and updating the engineering hourly rates for 2025; and
WHEREAS, City staff proposed to work with Harris & Associates to implement the street maintenance projects identified in the Pavement Management Program (PMP) present to Council; and
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WHEREAS, the City has requested support from Consultant to incorporate the preparation of the Plans, Specifications and Estimate (PS&E) for the remainder of the contract term into the Consultant Services Contract to provide Pavement Program Management Services; and
WHEREAS, Consultant has developed a not to exceed budget of $205,402 based on Time and Materials for design services, and subconsultants services that is funded under the currently approved Year 1 budget of $425,000 in accordance with the Contract, and incorporation of these services will not require an increase in the compensation to be paid to consultant; and
WHEREAS, Consultant has requested incorporation of subconsultants services into the Contract performed by 1) Pavement Engineering Inc. (PEI) for technical support in performing pavement evaluation services that will include field testing consisting of deflection testing and pavement coring to determine asphalt layer thickness and provide Harris & Associates with an engineering report summarizing the deflection analysis and provide pavement rehabilitation options, and 2) Ruggeri Jensen Azar (RJA) for technical support in providing a design survey that Harris & Associates will use to develop the design of new curb ramps and curb extensions; and
WHEREAS, the Second Amendment of the Contract for Consultant Services is in the best interest of the City of Watsonville.

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

Section 1 is hereby amended to read:
"Section 1. Scope of Services. In addition to the performance of those services specified in detail in Exhibit “A-1” of the Contract, Consultant shall perform the additional services specified in detail in Exhibit “1”, entitled SECOND AMENDMENT TO SCOPE OF SERVICES, which is attached hereto and incorporated herein. Further, under Task 2 “Plans, Specifications, & Estimates (PS&E)” the Consultant shall Docusign Envelope ID: A20A1043-3C35-430C-8DCE-3790C14543CE

perform services preparing PS&E of the annual paving projects approved by the City, subject to City’s approval of the scope and budget. The revised Exhibit “A-1” related to Task 1 and Task 2 are attached hereto and incorporated herein.”
Section 4. is hereby amended to read:
“Exhibit “C” Compensation. There shall be no increase in the compensation under the Contract with this Second Amendment; the compensation remains $1,275,000 for the initial three-year term of the Contract unless otherwise revised by subsequent amendment.

Additionally, the hourly billing rates are updated for the 2026 Engineering Hourly Billing Rates, as attached hereto and incorporated herein.”
All other terms and conditions of the Contract dated April 29, 2024, as amended, shall remain in full force and effect.

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

CITY

CITY OF WATSONVILLE
By___________________________
Tamara Vides, City Manager
ATTEST:

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

By____________________________
Samantha W. Zutler, City Attorney

CONSULTANT
HARRIS & ASSOCIATES, INC.

By___________________________
Marcus Fuller, Vice President
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EXHIBIT "1"

SECOND AMENDMENT TO SCOPE OF SERVICES
The scope of services is as follows:

As described in the proposal dated December 11, 2025, from Marcus Fuller and Leon D.

Gomez to Miguel Lizarraga regarding the Pavement Program Manager – Year 2:

Proposal to provide engineering design services for the Clifford Avenue Rehabilitation Project.

See attachment labeled EXHIBIT “1”.

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Exhibit C, Item b “Basis of Payment” (Revised)
b. Basis for Payment. Payment(s) to Consultant for services performed under this Contract shall be made as follows and shall include payment for reimbursable expenses:

Team Member Job Classiϐication Hourly Pay Rate*
Harris & Associates
Vice President $352
Senior Project Manager $289
Project Manager $268
Senior Design Engineer $220
Design Engineer $179
NCE
- Principal In Charge $354
- Project Manager $190
- Project Analyst $170
- Staff Engineer $133
Pavement Engineering, Inc. (PEI)
- Senior Principal Engineer $280
- Principal Engineer $250
- Senior Associate Engineer $240
- Associate Engineer $220
- Assistant Engineer $190
- Laboratory Manager $195
- Senior Engineering
Technician $170
- Laboratory Technician $135
- Clerical $88
- PW Deϐlection Testing $600
- PW Coring $485
- PW Deϐlection
Testing/Coring Travel $400
- PW Trafϐic Control $335
- PW Trafϐic Control Travel $285
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Exhibit C, Item b “Basis of Payment” (Revised)
Ruggeri-Jensen-Azar (RJA)
- Project Manager $295
- Senior: Engineer, Survey,
Planner $280
- Associate: Engineer,
Surveyor, Planner $268
- Engineer, Surveyor, Planner $235
- Assistant: Engineer,
Surveyor, Planner $200
- Senior Technician $195
- Technician $175
- Assistant Technician $150
- Project Coordinator $125
- Administrative Assistant $107
- Clerical $81
- Field Survey Manager $250
- 1-Person Survey Crew $230
- 2-Person Survey Crew $355
- 3-Person Survey Crew $425
- Principal $310
- Deposition/Court
Appearance
Rates are available
upon request
Rates above are effective as of January 1, 2026.

Hourly pay rates are subject to change on January 1, 2027, and on the 1st of January every year thereafter, escalated at the Consumer Price Index published for the San FranciscoOakland-Hayward area.

Subject to the Director’s prior approval, Consultant may propose additional team members, job classifications and associated hourly pay rates as may be necessary in the completion of the required professional services.

The following apply to payment of reimbursable expenses:

1. Mileage reimbursement will be pursuant to the established IRS mileage rate for that given time period.

2. All subconsultant charges are subject to a 10% markup. Direct expenses, such as permitting fees, printing of plans and specifications, and other expenses in service of the city’s project will be billed at cost plus 10% markup.

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Exhibit C, Item b “Basis of Payment” (Revised)

3. Attendance at meetings in service of the client will be billed on a Time and Materials basis pursuant to the billing rates for that time period.

4. Travel costs to attend in-person meetings at the City of Watsonville will be billed at direct cost, inclusive of car rentals, lodging, airfare, and per diem costs when such travel is required.

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1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, January 13, 2026
TO: CITY COUNCIL
WRITTEN BY: PROJECT MANAGER PERALTA
RECOMMENDED BY: DEPUTY CITY MANAGER CALUBAQUIB
APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: APPROVE CONTRACT CHANGE ORDER NO. 1, IN THE AMOUNT OF $39,294 WITH KNOWLTON CONSTRUCTION FOR THE PARKS &

COMMUNITY SERVICES WINDOW REPLACEMENT PROJECT INCREASING

COMPENSATION AMOUNT FOR A REVISED CONTRACT AMOUNT NOT
TO EXCEED $127,047
RECOMMENDATION:

Adopt a resolution approving Contract Change Order No. 1 with Knowlton Construction for the Parks & Community Services Window Replacement Project, increasing the compensation amount by $39,294, for a revised total contract amount not to exceed $127,047; and authorizing City Manager to execute same.

BACKGROUND:

On August 19, 2025, bids that were submitted by the deadline for the Parks & Community Services Window Replacement Project, No. CB-25-15011-QB, were publicly opened and later tabulated by the Purchasing Officer for consideration of the City Manager.

On September 14, 2025, the City Manager authorized a contract between the City of Watsonville and Knowlton Construction for a public building improvement project to replace windows at 231 Union St. known as the Parks & Community Services Window Replacement Project, No. CB-25-15011-QB for $87,753.

DISCUSSION:

The scope of work under the Parks & Community Services Window Replacement Project includes the removal of existing front-facade windows and north facing windows with replacement of aluminum

2 windows. An additional seven windows, including the purchase and installation of premium poly blinds, are included in Contract Change Order (CCO) No. 1 and will increase the contract’s compensation amount by $39,294. The public building located at 231 Union Street known as the Parks & Community Services Headquarter Office will have most windows replaced if CCO No. 1 is approved. The building is also in need of the installation of new blinds which are included in the cost for CCO No. 1. If approved, the revised contract total amount for this contract will be $127, 047.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

This action is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (exemption for existing facilities) because the Parks & Community Services Window Replacement Project consists of the improvement, maintenance, repair, and/or minor alterations of an existing public facility, involving no expansion of existing capacity, and therefore 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. Therefore, no additional CEQA review is required.

STRATEGIC PLAN:

This recommendation is consistent with the following Council Strategic Goals:

Priority 2 – Infrastructure & Environment – Improvement of existing City facility FINANCIAL IMPACT:

Funds for Change Order No. 1 will be utilized from the PCS Headquarters Upgrade account number 310- 529-7855-15181.

ALTERNATIVE ACTION:

City Council may choose not to accept this change order, and the additional scope of work will not be completed.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

1 Reso No. ______ (CM)
Meeting Date: 011326 SWZ ______ TV ______ PCS ______
RESOLUTION NO.________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING CONTRACT CHANGE ORDER NUMBER
1, IN THE AMOUNT OF $39,294 WITH KNOWLTON CONSTRUCTION

FOR THE PARKS & COMMUNITY SERVICES WINDOW REPLACEMENT
PROJECT, NO. CB-25-15011-QB FOR A REVISED CONTRACT AMOUNT NOT TO EXCEED $127,047; AUTHORIZING AND DIRECTING THE CITY

MANAGER TO EXECUTE SAME
WHEREAS, pursuant to Title 7, Chapter 14 of the City of Watsonville Municipal Code, the City issued a notice inviting informal quick bids for the Parks & Community Services Window Replacement Project, No. CB-25-15011-QB23; and WHEREAS, bids that were submitted by the deadline, were publicly opened in the “Old City Council Chambers”, City Hall, 250 Main Street, Watsonville, California, on August 19, 2025, at 11:00 A.M., and later tabulated by the Purchasing Officer for the consideration of the City Manager; and
WHEREAS, on September 10, 2025, City staff recommended that the City Manager approve and award a contract to Knowlton Construction for the Parks & Community Services Window Replacement Project, Capital Improvement Project Number CB-25-15011-QB23, in the amount of $87,753; and
WHEREAS, on September 14, 2025, the City Manager authorized this informal quick bid contract between the City of Watsonville and Knowlton Construction for a public building improvement project located at 231 Union St. for window replacement known as the Parks & Community Services Window Replacement Project, No, CB-25-15011-QB23; and
WHEREAS, this Contract Change Order No. 1 will add to the scope of work adding the replacement of seven additional windows including the purchase and installation of

2 Reso No. ______ (CM)
Meeting Date: 011326
premium poly blinds, and increasing compensation by $39,294 for a revised total contract amount not to exceed $127,047.

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

1. This action is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (exemption for existing facilities) because the Parks & Community Services Window Replacement Project consists of the improvement, maintenance, repair, and/or minor alterations of an existing public facility, involving no expansion of existing capacity, and therefore 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. No additional CEQA review is required.

2. That Change Order No. 1 between the City of Watsonville and Knowlton Construction, a copy of which is attached hereto and incorporated herein by this reference is hereby approved.

3. The City Manager is authorized and directed to execute said Change Order for and on behalf of the City of Watsonville with minor revisions that may be approved by the City Manager and the City Attorney.
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CITY OF WATSONVILLE
Public Works and Utilities Department
CONTRACT CHANGE ORDER NO: #1
Project Name: PCS Window Replacement City Project No: CB-25-15011-QB Contract No: #3600
Project Location: 231 Union Street
Watsonville, CA 95076
To: Knowlton Construction
You are hereby directed to make the herein described changes from the contract plans and specifications or do the following described in the contract plans and specifications. All new work herein described shall be done in accordance with the applicable provisions of the contract plans and specifications, except as specifically modified by this contract change order.

NOTE: This change order is not effective until approved by the Director of Parks and Community Services Department Change requested by: Project Manager
Description of Work:
1 Removal and Disposal
a. Safely remove and properly dispose of the existing seven (7) windows. 2 Window Installation
a. Furnish and install three (3) all-weather, dark bronze anodized awning windows above picture windows, featuring gray glass:

Two (2) of these windows will include obscured inner glass lites.

One (1) will include Low-E3 glass.

Installation will be retrofit style.

The scope incldues preparation of rough opening, including any necessary structural modifications to ensure proper fit, flashing, waterproofing, and secure anchoring of the new window units.
b. Furnish and install four (4) all-weather, dark bronze anodized picture windows with gray glass over Low-E3:

Installation will include nail-on fins.

The scope includes preparation of rough opening, including any necessary structural modifications to ensure proper fit, flashing, waterproofing, and secure anchoring of the window units.
3 Finish Work
a. Perform final touch-ups and painting of all areas affected by window removal and installation:

Includes patching, sanding, priming, and painting of interior and exterior surfaces where finishes were disturbed, altered, or newly installed.
4 Clean Up
a. Clean up and haul away all debris from the premises. 5 Blinds
a. ABS Premium Poly Blinds with the following quantities at these locations:
(4) conference room, (6) office, (8) offices, (1) restroom, (1) reception, (3) back offices/cubicles, and (3)back offices/cubicles Total Cost $39,294.00
Total of Change Order No. 1 $39,294.00
The Original Contract Sum Was: $87,753.00
Net Change by Previously Authorized Change Orders 1-6 $0.00 The Contract Sum Prior to this Change Order was $87,753.00 The Contract Sum will be increased by this change Order(s) in the Amount of $39,294.00 The New Contract Sum Including this Change Order will be $127,047.00 Docusign Envelope ID: BD9138A2-6A1D-4968-A48C-03AFCD74886F

By reason of this order the time of completion will
be adjusted as follows: To be determined.

Approved: Approved:

Project Manager Date Director of Parks Date
and Community Services
Approved: Approved:

Director of Administrative Services Date City Manager Date We, the undersigned contractor, have given careful consideration to the change proposed and hereby agree, if this proposal is approved, that we will provide all equipment, furnish all materials, except as may otherwise be noted above, and perform all services necessary for the work specified, and accept the prices listed above as full payment for all labor, equipment, materials, overhead and profit required to perform the above described change.

Date Accepted Contractor
By Title
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Knowlton Construction 12/19/2025 | 10:12 AM PST

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1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, January 13, 2026
TO: CITY COUNCIL
WRITTEN BY: PUBLIC WORKS & UTILITIES ENGINEERING ASSOCIATE GREGORIO RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR LINDBERG APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: APPROVE CONTRACT CHANGE ORDER NO. 1 ADDING TO THE SCOPE OF WORK AND INCREASING THE COMPENSATION BY $166,000 WITH J.

JOHNSON & COMPANY, INC., FOR THE 2024-2025 CITYWIDE SIDEWALK

REPAIR PROJECT
RECOMMENDATION:

Staff recommend that the City Council adopt a resolution approving contract Change Order No. 1, adding to the scope of work and increasing the compensation by $166,000 with J. Johnson & Company, Inc., for the 2024-2025 Citywide Sidewalk Repair Project, for a total contract amount of $395,550, and authorizing and directing the City Manager to execute the same.

BACKGROUND:

On February 11, 2025, City Council approved Resolution No. 33-25 (CM) to award a construction contract to J. Johnson & Company, Inc. for the 2024-2025 Citywide Sidewalk Repair Project, in the amount of $229,550.00.

The California Department of Transportation (Caltrans) has a major reconstruction project scheduled to be done on Riverside Drive/State Route 129 between State Route 1 and the Salsipuedes Creek Bridge that will begin in early 2026.

DISCUSSION:

The City has identified a location on the North side of State Route 129, between Locust Street and Walker Street that requires reconstruction of curb, gutter, and sidewalk. Caltrans is planning major construction on Riverside Drive/State Route 129, scheduled to begin in early 2026. Caltrans has requested the sidewalk

2 improvements be completed prior to the start of their project. The sidewalk project has already been designed and is ready for construction.

The total cost of the change order is $166,000.00 and requires approval from the City Council. This amount covers the following scope of work:
- Mobilization
- Implementation of a Traffic Control System
- Caltrans Encroachment Permit
- Minor Concrete - New Driveway Approach
- Minor Concrete -- New Curb & Gutter
- Minor Concrete -- New Sidewalk
- Modification of Storm Drain Inlet Type D
- Thermoplastic Striping & Raised Pavement Markers (Detail 27B) - Curb Drains
- Hot Mix Asphalt (HMA) Conforms
- Remove and Replace Unsuitable Materials
- Adjust Gate
- Installation of Tree Grates (for work on Maple Avenue and Union Street) The sidewalk along Riverside Drive has been damaged by the roots of adjacent trees. Prior to the removal and reconstruction of these sidewalks, the trees will be removed under a separate contract by a different contractor.

Funding for this project will come from two sources. City staff have been working with the adjacent property on a payback agreement. The City and property owner have reached an agreement under which the property owner will contribute $44,302.50 toward the project. The remaining balance will be funded through Measure D.

The City identified a site that requires reconstruction of curb, gutter, and sidewalk on the north side of State Route 129 between Locust St and Walker St. Caltrans has a major construction project on Riverside Dr/State Route 129 that will begin in early 2026, and they’ve asked that the sidewalk work be done prior tobefore their project. The sidewalk project has been designed and is ready to be constructednow ready for construction. These improvements are included in the proposed Change Order. In addition, there will be installation of tree grates at various sites throughout the City that may be requiredAdditionally, the installation of tree grates will be required at various sites throughout the City. The total Change Order amount is $166,000 and requires Council approval. Some of the sidewalks were damaged by the roots of adjacent treesThe roots of adjacent trees damaged some of the sidewalks. Prior to the sidewalk work being done, the trees will be removed by a different contractor and through a separate contract.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

No additional California Environmental Quality Act (CEQA) review is required for the 2024-2025 Citywide Sidewalk Project. On February 11, 2025, the City Council declared the 2024-2025 Citywide Sidewalk

3 Project as exempt in accordance with CEQA Guidelines Section 15301, CE Class 1, maintenance of existing streets involving no expansion of capacity, and no changes to the project are proposed that would result in any environmental impacts that are new or were not previously analyzed. Therefore, no additional CEQA review is required.

STRATEGIC PLAN:

This recommendation is consistent with the following Council Strategic Goals:
 Infrastructure & Environment
 Public Safety
FINANCIAL IMPACT:

Funding for this project will be from two sources. City staff has been working with the adjacent property owner to pay into the city’s sidewalk replacement program (Account #0150-511-7332). The balance will be paid with Measure D funds (Account #0312-972-7837-14873) ALTERNATIVE ACTION:

The Council could elect not to approve the contract change order, which would prevent reconstruction of the West Riverside Drive curb, gutter, and sidewalk.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

1. Walker St Sidewalk Repair Repayment Agreement

Attachment 1

Attachment 1

Attachment 1

Attachment 1

Attachment 1

1 Reso No. ______ (CM)
Reference: Reso No. 33-25 (CM) (Amend)
Meeting Date: 011326 SWZ ______ TV ______ PWU ______
RESOLUTION NO. _________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE APPROVING CONTRACT CHANGE ORDER NO. 1
BETWEEN THE CITY OF WATSONVILLE AND J. JOHNSON &
COMPANY, INC., A CORPORATION, FOR THE 2024-2025 CITYWIDE

SIDEWALK REPAIR PROJECT, ADDING TO THE SCOPE OF WORK,
INCREASING THE COMPENSATION BY $166,000, AND AUTHORIZING

AND DIRECTING CITY MANAGER TO EXECUTE SAME
WHEREAS, on February 11, 2025, Council adopted Resolution No. 33-25 (CM), authorizing the City Manager to execute a contract with J. Johnson & Company, Inc., a corporation for the 2024-2025 Citywide Sidewalk Repair Project, in an amount not to exceed $229,550; and
WHEREAS, this Contract Change Order No. 1 will add to the scope of work and increase the contract by $166,000, for a total revised contract amount not to exceed $395,550.

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

1. On February 11, 2025, the City Council declared the 2024-2025 Citywide Sidewalk Project as categorically exempt in accordance with California Environmental Quality Act (CEQA) Guidelines Section 15301, CE Class 1, maintenance of existing streets involving no expansion of capacity, and no changes to the project are proposed that would result in any environmental impacts that are new or were not previously analyzed and thus no additional envriontmental review is required for the 2024-2025 Citywide Sidewalk Project.

2 Reso No. ______ (CM)
Reference: Reso No. 33-25 (CM) (Amend)
Meeting Date: 011326

2. That the Contract Change Order No. 1 between the City of Watsonville and J. Johnson & Company, Inc. a copy of which, is attached hereto and incorporated herein by this reference is hereby approved.

3. That the Contract Change Order No. 1 will be funded through a repayment agreement with the property owner and the remaining amount will be funded through Measure D.

4. That the City Manager is authorized and directed to execute said Contract Change Order No. 1 for and on behalf of the City of Watsonville with minor revisions that may be approved by the City Manager and the City Attorney. ************************************

CITY OF WATSONVILLE
Public Works and Utilities Department
CONTRACT CHANGE ORDER No. 1 Contract No. 3324
Project Name: 2024-2025 Citywide Sidewalk Repair Project City Project No. 14873 Contractor: J. Johnson & Company Inc.

Description of Work:

Total Amount of Change Order: $166,000.00
Accepted By Contractor:

J. Johnson & Company Inc. Date
City Approval:

Project Manager Date Director Public Works & Utilities Date If Cumulative Change Order Percentage is Greater Than 15% the Following Signatures are also required:

Director of Administrative Service Date City Manager Date Contract Summary:

The Original Contract Sum:

Net Change by Previously Authorized Change Orders
The Contract Sum Prior to this Change Order:

Amount of this Change Order:

The New Contract Sum Including this Change Order:

Cumulative Change Order Percentage Increase 72%
The contractor will be given additional sites to conduct work. One will include the reconstruction of curb, gutter, and sidwalk along West Riverside Dr. The other sites will require the installation of new tree grates. $229,550.00
$166,000.00
$395,550.00
This change order constitutes full and complete compensation for all labor, equipment, materials, overhead, profit, any and all indirect costs and time adjustment required to perform the above described change. All work shall be completed in accordance with the applicable provisions of the Contract Documents.

By reason of this order the time of completion will be adjusted as follows: N/A $229,550.00
$0.00
Docusign Envelope ID: 15667FFE-5D1D-4555-B354-CE0300E55D0E 8/13/2025 | 2:49 PM PDT
8/13/2025 | 4:50 PM PDT

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, January 13, 2026
TO: CITY COUNCIL
WRITTEN BY: PROJECT MANAGER (WATER DIVISION) BRANDENBURG RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR LINDBERG APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: AWARD CONTRACT TO DUDEK FOR PROFESSIONAL ENGINEERING

DESIGN SERVICES FOR THE FREEDOM RESERVOIRS FLOATING COVERS REPLACEMENT, IN AN AMOUNT NOT TO EXCEED $196,857
RECOMMENDATION:

Adopt a resolution awarding a contract to Dudek for professional engineering design services for the Freedom Reservoirs Floating Covers Replacement for $196,857 and authorize and direct the City Manager to execute the same.

BACKGROUND:

The city needs to design replacements for the existing covers on the Freedom Reservoirs. The current reservoir covers have reached the end of their life and will need to be replaced for health and safety reasons.

DISCUSSION:

The Freedom Reservoirs were originally constructed around the year 1930 and serve the City’s Zone 1 water service area with approximately six million gallons of capacity. The current reservoirs’ covers are made of a synthetic rubber called Hypalon and were last replaced in 1995 for the “Main Reservoir and in 2006 for the “Distribution Reservoir”. Since then, City staff and outside contractors have made periodic repairs. It is understood that the current state of the covers has reached the end of life and will need to be replaced within the next several years.

The existing cover replacement project had been paused while the concept of a complete replacement of the Fowle Booster Pump Station, groundwater wells, and in-ground reservoirs was explored and found to

2 be on the order of $40 million or more. With the State Water Board issuing a new maximum contaminant level for Hexavalent Chromium, the City’s Water Enterprise Fund will not have sufficient budget to fund both significant capital projects at the same time. This resulted in the difficult decision to defer the overall Freedom/Fowle site replacement for at least 10 yearsto be able to focus the available budget on the more regulatory time-sensitive Hexavalent Chromium treatment. However, the existing Hypalon cover replacement cannot be deferred further; thus, there is a need to fund this project in the Water Capital Improvement Plan.

City staff reached out to Dudek for its engineering expertise. Dudek’s proposal aligns with the Water Division's expectations for what is needed to execute a successful design prior to bidding for construction.

The city maintains a list of on-call engineering consultants, selected from publicly advertised Request for Qualification Statements (RFQ) from Consulting Engineering Firms. This list is for Periodic and On-Call Water and Wastewater Professional Design Services. Dudek is on that list and is qualified to provide professional design services for the Freedom Reservoirs Floating Covers Replacement. Staff therefore recommend that a contract with Dudek be awarded and executed in an amount not to exceed $196,857.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

This action is exempt from the requirements of the California Environmental Quality Act (CEQA). Awarding a contract for professional design services has no potential for direct or indirect physical changes in the environment and constitutes merely an administrative activity of the government (14 Cal. Code Regs. §15378(a), (b)(5)). Even if awarding the contract were considered a “project,” it would be exempt from CEQA review under CEQA Guidelines Section 15262, as it involves only professional services related to possible future actions that the City has not approved, adopted, or funded, and the contract has no legally binding effect on any later activities (14 Cal. Code Regs. §15262). The action is also exempt under the “common sense” exemption (14 Cal. Code Regs. §15061(b)(3)), because it can be seen with certainty that there is no possibility that this activity may have a significant effect on the environment. Further CEQA review will be conducted, as appropriate, prior to approval of any subsequent construction or implementation phase of the Freedom Reservoirs Floating Covers Replacement.

STRATEGIC PLAN:

Approving this contract is consistent with the strategic plan goal:

Infrastructure & Environment
FINANCIAL IMPACT:

The cost of this proposal is not to exceed $196,857. There is sufficient budget to cover the costs in the Water Enterprise Fund in budget account 913-7813-14414.

ALTERNATIVE ACTION:

3 Council may elect not to award the contract to Dudek, and the condition of the existing floating covers will continue to deteriorate.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

Reso No. (CM)
Meeting Date: 011326 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE AWARDING PROFESSIONAL SERVICES CONTRACT

TO DUDEK, A CORPORATION, FOR ENGINEERING DESIGN SERVICES

FOR THE FREEDOM RESERVOIRS FLOATING COVERS
REPLACEMENT, IN AN AMOUNT NOT TO EXCEED $196,857; AND

AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE
SAME
WHEREAS, § 3-5.500 of the Municipal code provides that an RFP or RFQ process is found to be an effective and efficient way to procure professional services and procurement of professional services shall be based on proposals solicited from capable professionals and be evaluated based on a combination of factors including education, training, experience and demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required; and WHEREAS, § 3-5.540 of the Municipal Code provides that contracts for professional services estimated to cost more than One Hundred Thousand and no/100ths ($100,000.00) Dollars must be awarded by the Council, and that the selection will be based on demonstrated competence and on the education, training and experience and professional qualifications necessary for the satisfactory performance of the services required, that cost will not be the only basis for selection, use a qualifications-based selection process as described in subdivision (a) of § 45271 of the California Government Code and negotiated as described in § 4528; and
WHEREAS, a Request for Qualifications (RFQ) was issued on July 10, 2023, with submissions due August 9, 2023, asking for qualified consultants to assist the City with on-call water and wastewater professional design services; and

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

Reso No. (CM)
Meeting Date: 011326
2 WHEREAS, a total of 16 firms submitted qualification statements; these statements were reviewed by City staff and a list was developed; and WHEREAS, Dudek is on this list of eligible on-call consultants and was selected for their knowledge and experience in water facilities and their specific experience working with the City’s facilities; and
WHEREAS, the City Manager has recommended that the proposal from Dudek in an amount not to exceed $196,857, be accepted as the best response.

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

1. This action is exempt from the requirements of the California Environmental Quality Act (CEQA). Awarding a contract for professional design services has no potential for direct or indirect physical changes in the environment and constitutes merely an administrative activity of the government (14 Cal. Code Regs. §15378(a), (b)(5)). Even if awarding the contract were considered a “project,” it would be exempt from CEQA review under CEQA Guidelines Section 15262, as it involves only professional services related to possible future actions that the City has not approved, adopted, or funded, and the contract has no legally binding effect on any later activities (14 Cal. Code Regs. §15262).

The action is also exempt under the “common sense” exemption (14 Cal. Code Regs. §15061(b)(3)), because it can be seen with certainty that there is no possibility that this activity may have a significant effect on the environment. Further CEQA review will be conducted, as appropriate, prior to approval of any subsequent construction or implementation phase of the Freedom Reservoirs Floating Covers Replacement.

Reso No. (CM)
Meeting Date: 011326
3 2. The Council awards a contract to Dudek, a corporation, for engineering design services for the Freedom Reservoirs Floating Covers Replacement Project, in an amount not to exceed $196,857.

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

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

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

Watsonville Floating Covers Project 1
11/17/2025
Danielle Green
Assistant Director of Public Works
City of Watsonville
500 Clearwater Ln, Watsonville CA 95076
Subject: Proposal for Reservoir Floating Covers Replacement Dear Danielle Green,
Dudek is pleased to submit this proposal to City of Watsonville (City) for the preparation of design documents for the replacement of the floating covers currently installed at the Main and Distribution reservoirs. Prior to the preparation of this proposal, Dudek staff met with Watsonville staff on-site at the Treatment plant to discuss the scope of the task and also at the reservoir site itself to photograph existing conditions.

A Practical and Economical Approach. As detailed in the Background section of this proposal, our team has identified several critical project elements and has already explored possible design approaches for the work outlined in this proposal. Our planned approach will provide Watsonville with the most practical and collaborative solution for improvements for the Reservoir Floating Covers.

An Experienced, Cohesive Team. Over the past 25 years, Dudek has provided design and planning services to numerous municipalities, including many rehabilitation design projects. We are motivated to understand the standards, requirements, and how you prefer to complete successful projects. Additionally, this same team has completed numerous similar projects for other agencies in California. The Dudek team combines years of technical experience with a tailored approach to successfully develop design improvement projects.

We are eager to assist you and are confident our team will deliver a successful project design to you. We appreciate the opportunity to submit this proposal and ask that you give us the opportunity to continue to demonstrate our expertise and professionalism. Dudek is committed to performing this work in the required manner and time frame outlined in this letter proposal. This proposal is valid for 180 days from the date of submission. If you have any questions or require any additional information, please do not hesitate to contact Project Manager Sam Hawkinson at (510) 636 5640 or [email protected].

Respectfully Submitted,
__________________________________ __________________________________ D. Michael Metts, PE Sam Hawkinson
Vice President of Engineering Project Manager
Mike Metts is authorized to sign on behalf of Dudek.

Attachment A. - Scope of Services
Pg. 1 of 11

Watsonville Floating Covers Project 2
Background
It is our understanding that the City of Watsonville (Watsonville) is requesting engineering service proposals for the design for the replacement of two existing reservoir floating cover systems. The existing reservoirs are vintage, hopper bottom style concrete and earthen berm reservoirs originally constructed in the 1930s or possibly earlier.

The original wood-framed reservoir covers were previously removed and replaced with Hypalon floating cover systems, the larger (Main) of the two reservoirs utilizing a defined sump floating cover and the smaller (Distribution) reservoir utilizing a tensioned floating cover system. These covers are nearing the end of their useful life, prompting the City to replace the covers with a similar system.

The Main and Distribution reservoirs are located at 1521 Freedom Blvd, Watsonville, CA. The reservoirs are accessed via an access road that connects to Freedom Blvd. and is isolated from public access via a gate. The site is also used to house City assets, although technically separated from the reservoirs by an additional fence.

Figure 1. Main and Distribution Reservoirs Site
Main Reservoir
The Main reservoir is the larger of the two reservoirs at an approximate coverage of 72,000 Square Feet. The cover material is a 45 mil-thick, Hypalon brand, floating-style cover. The cover material shows signs of numerous repairs over the years. It is understood that these repairs have both been made by City staff and also a local contractor, Layfield. The cover is floated via rigid polyethylene foam planks which are wrapped in Hypalon and the cover is ultimately mounted to the curb around the reservoir with metal fasteners, as shown in Figure 2. It is believed that this cover was installed in 1995.

Attachment A. - Scope of Services
Pg. 2 of 11

Watsonville Floating Covers Project 3
The floating cover has the following key components to consider:

1. Sump Floats – Rigid polyethylene planks designed with alternating gaps between the floats to allow for surface water to be channeled to the sump pumps and to provide buoyancy and support the weight of the cover material.

2. Sump Weights – 6” diameter Hypalon tubes filled with sand to allow for surface water to be channeled to the sump pumps.

3. Ancillary Floats – Rigid polyethylene planks designed to provide buoyancy and support the weight of the cover material.

4. Access Hatches – Bilco S-50 aluminum access hatches are installed around the cover for inspection purposes, they are installed on the northwest and southeast corners of the reservoir. These hatches are constructed of aluminum body hatches and mounted to a rigid polyethylene plank frame, wrapped in Hypalon.

5. Rainwater Removal System – Rainwater is routed to the sump via the sump floats and weights. Rainwater is removed from the sump via submersible pumps which are situated inside of perforated HDPE bins. The discharge piping is flexible and is currently sitting on grade.

6. Floating Walkways – Rigid polyethylene planks with a 36-inch width and wrapped in Hypalon are used to access both the access hatches and the rainwater removal systems.

7. Anchors – The cover itself is attached to the reservoir concrete curb via anchors and metal fasteners.

8. Vents – The floating cover requires multiple vents to allow for pressure equalization when filling and draining the reservoir.

Figure 2. Main Reservoir Floats
Sump Floats
Sump Weights
Ancillary Floats
Attachment A. - Scope of Services
Pg. 3 of 11

Watsonville Floating Covers Project 4
Figure 3. Main Reservoir Sump Pump and Discharge Piping Distribution Reservoir
The Distribution reservoir is the smaller of the two reservoirs at an approximate coverage of 8,800 Square Feet and is a tensioned floating cover-style. These types of covers are considered an upgrade from the traditional floating style covers, using mechanical tensioners located in specific intervals around the reservoir’s perimeter to maintain the tension in the cover and keep it in place, it also contains the same metal fasteners at the concrete curb that the Main reservoir has. The tensioners pull a fold into the cover as the water rises, maintaining tension during fluctuations in water level. This process also creates a sump in the relaxed outer cover perimeter, allowing stormwater to be easily diverted off the cover through a drainage system. City staff currently use a field-fabricated sump pump that can be deployed at any point along the cover folds to remove stormwater.

It is assumed that the cover material is a 45 mil-thick Hypalon. The cover material shows signs of numerous repairs over the years. It is understood that these repairs have both been made by City staff and also a local contractor, Layfield. It is believed that this cover was installed in 2005.

The tension floating cover has the following key components to consider for replacement:

1. Access Hatch – An access hatch is provided for inspection purposes, it is assumed to be the same size and type as is installed on the Main Reservoir.

2. Vents – The floating cover requires multiple vents to allow for pressure equalization when filling and draining the reservoir.

3. Tensioners –Steel tensioning towers include pulleys and weights that incorporate steel cables connected to the cover material. This perimeter cable system provides the required tensioning and buoyancy, allowing the cover to fluctuate with the water freeboard levels and supporting personnel on top of the cover for maintenance and cleaning.

4. Anchors – The cover itself is attached to the reservoir concrete curb via anchors and metal fasteners.

5. Sump Pump - Rainwater is removed from the loose outer cover layer via a submersible pump that City staff manually place where stormwater is ponding. The pump discharge piping is flexible and is currently sitting on grade, similarly, power to the pump is coming from a nearby receptable, as shown in Figure 5.

Sump Pump
Discharge
Anchors
Floating
Walkway
Attachment A. - Scope of Services
Pg. 4 of 11

Watsonville Floating Covers Project 5
Figure 4. Distribution Reservoir Cover
Figure 5. Distribution Reservoir Tensioners
Structural Considerations
It is assumed that the existing tensioners can mostly be reused – with the expectation that some percentage will require rehabilitation. It was observed during the site walk that there is a light degree of spalling and cracking on the reservoir curbs that will be addressed in this project.

Vent
Access Hatch
Sump Pump
Tensioners
Anchors
Attachment A. - Scope of Services
Pg. 5 of 11

Watsonville Floating Covers Project 6
Structural design services anticipated as part of this project include assistance with the development of performance specifications for the replacement cover systems and concrete rehabilitation technical specifications Bypassing Considerations
A key objective of this project is a smooth construction phase. Careful attention will be paid to bypassing requirements of the reservoirs to ensure that only one reservoir is taken offline at a time. Key points of the reservoirs system to be used for the bypassing are:
 Connection Pipeline - Existing 16” ID Welded Steel Pipeline connecting the two reservoirs, see Figure 6.

This line will need to be isolated via either an installed valve which may or may not still be present – or via an inflatable plug.
 Isolation Valves – During bypass periods, reservoirs can be isolated manually via two 24” buried valves (WSV-009241 / WSV – 009830) located on the fill lines for each reservoir. For isolation valve location, refer to Figure 7.

Figure 6. Details of Pipeline Connection the Main and Distribution Reservoirs Attachment A. - Scope of Services
Pg. 6 of 11

Watsonville Floating Covers Project 7
Figure 7. Reservoir Isolation Valves
Understanding
The level of effort planned for this scope of work assumes the following drawing list:

No. Sheet No. Sheet Name
1 G-1 Title Sheet, Drawing Index, and Vicinity Map
2 G-2 General Notes, Symbols, Abbreviations, and Schedules 3 G-3 Bypassing Plan
4 D-1 Site Demolition Plan
5 D-2 Site Demolition Details - 1
6 D-3 Site Demolition Details - 2
7 C-1 Main Reservoir Civil Improvements
8 C-2 Distribution Reservoir Civil Improvements
9 C-3 Main Reservoir Civil Improvements
10 C-4 Civil Details - 1
11 C-5 Civil Details - 2
Attachment A. - Scope of Services
Pg. 7 of 11

Watsonville Floating Covers Project 8
Scope of Services
Based on our approach and understanding above, coupled with our review of the notes from the pre-proposal site walk and incorporated these into the following scope of work. We have identified our clarifications, enhancements, and proposed optional tasks in blue italicized font. An anticipated List of Drawings is included in Table 1, below. Accordingly, our scope of work consists of the following tasks:

Task 1: Project Management
Task 1.1 Project Management and Invoicing
Dudek will communicate with Watsonville through phone calls, emails, or texting to discuss progress and design issues at least weekly. Any concerns or questions will be presented as they occur.

Dudek will submit a monthly progress report with our invoice. The report will address project status, schedule, budget, issues, concerns, and anticipated work. Dudek will also identify any out-of-scope items that have been requested or are being performed.

Task 1.2 Meetings
Task 1.2.1 General
Dudek will prepare agendas for meetings as needed to progress the work. Dudek will serve as meeting moderator, prepare meeting minutes, list action items, keep a log of design decisions, and follow up as needed.

Task 1.2.2 Kickoff
Dudek will prepare and attend an in-person project kickoff meeting to review the project scope, budget, and schedule. The meeting will also introduce Dudek and staff and establish lines of communication.

Dudek assumes project kickoff meeting to include a site investigation with City staff to discuss existing maintenance and operational challenges at the reservoirs site.

Task 1.2.3 Staff Progress
Dudek will plan two meetings with staff to discuss and present the design progress and to discuss any comments on submittals. Generally, these meetings will be held in conjunction with the 50% and 100%, and Final design submittal.

Dudek plans for Virtual meetings for the progress or review meetings, assumes a 1 hour duration for each meeting.

Task 2: Data Request and Review
Task 2.1 Record Drawing Review
Dudek has received and reviewed the following documents:
 1930 Freedom Reservoirs
 1995 Floating Covers
Attachment A. - Scope of Services
Pg. 8 of 11

Watsonville Floating Covers Project 9
It is observed that there is an additional record drawing that Dudek has not yet received. This is for the cover design for the Distribution Reservoir. This document will be requested and reviewed at the onset of the project.

Task 2.2 Vendor Coordination and Equipment Sizing
Dudek will coordinate with reservoir floating cover vendors, including Layfield, who designed the covers that are being replaced in this project. The covers will be sized for the Main and Distribution reservoirs.

It is assumed that the reservoir cover anchorage will remain the same style for both reservoirs.

Task 3: Pre-Design Report (PDR)
Prepare a Draft PDR that provides alternatives for overall facility improvements and cover style alternatives including estimated construction costs for each alternative.

PDR Sections to include:
 Floating Cover Material Types (15-year vs 50-year lifespan)  Floating Cover Styles
 Stormwater Removal
 Yard Piping
 Recommendations and Conclusions
Task 4: Construction Documents
Dudek will prepare construction drawings, specifications, and cost estimates suitable for the construction of the project. The documents will be submitted for review and comment at the 50% and 100% stages. Final documents will be submitted for construction bidding purposes.

Task 4.1 Construction Drawings
Dudek will prepare contract documents including construction drawings. The drawings shall include all General, Demolition, and Civil disciplines for replacement of the two floating covers and any other recommendations agreed upon in the PDR. Final design of the cover systems will be a delegated design to be performed by the Contractor and their subcontractors during construction.

Progress submittals shall be submitted to Watsonville for review at 50%, 100%, and “Final For Construction” stages. Dudek shall prepare and submit an electronic copy of the plans together with an electronic copy of the specifications to Watsonville for review at each relevant submittal. Dudek shall incorporate City comments after the review.

Task 4.2 Construction Specifications
Dudek will provide complete construction specifications, including project specific front-end contract, general, and special conditions, and all relevant technical specifications required for construction of the project. Watsonville standard “front end” specifications and any City standard technical provisions/specifications will be provided to Dudek in MS Word format for review and editing. Dudek will provide an outline of the specification package with the 50% submittal and complete specifications for review at the 100% and “Final for Construction” submittals.

Attachment A. - Scope of Services
Pg. 9 of 11

Watsonville Floating Covers Project 10
Dudek and Kelsey Structural (KS) shall provide structural design support for the preparation of prescriptive performance specifications for two (2) new floating cover systems. Specifications will be edited to include relevant structural information including design criteria, governing building codes and standards, basic loading criteria including wind and seismic parameters, minimum material properties, anchor bolt requirements, sealant requirements and similar structural properties of the systems. Structural design of the floating cover systems, their connections or foundation elements is not provided. Final design engineering of the cover systems will be a delegated design to be performed by the Contractor and their subcontractors during construction.

Dudek and KS shall develop Concrete Rehabilitation technical specifications (Section 03740) for anticipated concrete repairs and rehabilitation required at the two (2) existing reservoirs. Anticipated concrete rehabilitation includes epoxy injection crack repair, concrete spall mortar repair, concrete bonding agents, concrete joint replacement and anchor bolt replacement.

Task 4.3 Engineers Opinion of Probable Construction Cost (EOPCC) Dudek will provide a detailed cost estimate and schedule of bid. The detailed cost estimate shall be submitted with each design submittal, including the 50%, 100%, and Final Design submittals.

Dudek will prepare construction documents, including contract requirements, plans, and technical specifications.

The documents will be submitted for review and comment at the 50% and 100% stage. Final documents will be submitted for construction bidding purposes.

Any reuse or modification of the work product beyond the original purpose for which it was created, by City or a third person or entity authorized by City, without written verification or adaptation by Consultant will be at City’s sole risk and without liability or legal exposure to Consultant.

Project Team
Dudek proposes the following team for the proposed project. Resumes for all proposed staff are available upon request.
 Project Manager: Sam Hawkinson
 Senior Engineer: Servando Diaz, PE
 Electrical Engineer: Joseph Schneider, PE
 Project Engineer: Amilia Echivarre-Morelli, Talulah Patch, EIT  Structural Engineer: Matt Stone, SE
 Drafter / CAD: Hilary Goldschmidt, EIT
 QA/QC: Ken Diebert, PE
Schedule
Dudek has prepared a MS Project schedule included on the following page. Understanding, however, the schedule can be adjusted depending on the notice to proceed and City needs.

Attachment A. - Scope of Services
Pg. 10 of 11

Watsonville Floating Covers Project 11
Fee
Dudek estimates a fee of $196,857 for the above proposed scope of work, not including the Optional Tasks. The Optional Tasks are recommended to be determined following Final Design. Detailed fee estimate breakdown by task, staff, and hours is shown in the table on the following page.

Closing
We appreciate Watsonville’s consideration of the above proposal. Should you have any questions please reach out to Sam Hawkinson at 510.636.5640 or [email protected].

Sincerely,
Sam Hawkinson
Project Manager
Dudek
Attachment A. - Scope of Services
Pg. 11 of 11

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, January 13, 2026
TO: CITY COUNCIL
WRITTEN BY: WASTEWATER DIVISION MANAGER TELLEZ
RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR LINDBERG APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: AUTHORIZATION OF A PURCHASE ORDER FOR SOLE SOURCE

PURCHASE WITH TROJAN TECHNOLOGIES CORP, FOR REPLACEMENT

AND SPARE PARTS NEEDED IN THE WATER RECYCLING FACILITY, IN AN AMOUNT NOT TO EXCEED $260,550.78 PLUS THE ACTUAL COST OF

FREIGHT AND TAXES
RECOMMENDATION:

Adopt a resolution authorizing the sole source purchase of proprietary spare parts for the Recycled Water Facility from Trojan Technologies Corporation in the amount of $260,550.78 plus the actual cost of freight and taxes which are calculated upon final shipment, authorize and direct City Manager to execute the same, and authorize a budget appropriation in the amount of $367,000.00 from the Wastewater Enterprise Fund to budget account 0710-532-7324 to fund this purchase and any other repairs that may arise before the end of this fiscal year.

BACKGROUND:

In the annual maintenance assessment of the Trojan UV treatment process area of the Recycle Water Facility, City Operations staff inventoried and identified various replacement and spare parts that are proprietary to Trojan Technologies Corp. and, therefore, require a sole-source purchase order approval by Council.

DISCUSSION:

The City owns and operates a wastewater recycling facility (the Recycled Water Facility) that produces and delivers irrigation water to the Pajaro Valley Water Management Agency (PVWMA) who has distribution customers throughout the Pajaro Groundwater Basin. PVWMA reimburses the City for costs

2 associated with operating and maintaining the facility. The system contains various treatment processes, including a Trojan brand ultraviolet (UV) disinfection system used to disinfect the recycled water consistent with Title 22 State regulations. Maintenance is required on an ongoing basis that requires a supply of Trojan-proprietary parts to be utilized in the existing UV equipment. These parts can only be purchased through Trojan Technologies Corporation.

2. Subdivision (c) of § 3-5.210 exempts supplies and materials which are unique, available only from one source, or sought to match existing equipment or supplies already in use (also known as a sole source purchase). Staff, therefore, recommend City Council authorize and direct City Manager to issue a sole source purchase order to Trojan Technologies Corporation for the purchase of necessary replacement equipment and supplies for the UV equipment located in the Recycled Water Treatment Facility. The total requested amount of the purchase order is $260,550.78 plus the actual cost of freight and taxes which are calculated upon final shipment,
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

This action is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15378(b)(5), in that approving a sole source purchase order for replacement and spare parts for the Recycle Water Ultraviolet Disinfection System does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, and because the action constitutes organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment and if a “project,” is exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.

STRATEGIC PLAN:

This purchase is consistent with the Strategic Plan Priority:
02 - Infrastructure & Environment
FINANCIAL IMPACT:

2. The amount for this purchase order is $260,550.78 plus the actual cost of freight and taxes which are calculated upon final shipment. There is not sufficient budget available in the Water Recycling Operations & Maintenance “Repairs and Maintenance” budget item to cover the full cost of this purchase order and any other repairs that may arise before the end of this fiscal year. Therefore, staff is requesting an appropriation in the amount of $367,000.00, to

3 fund this purchase and any other repairs that may arise before the end of this fiscal year, from the Wastewater Enterprise Fund balance to budget code 0710-532-7324. It should be noted that all expenses paid from this budget for the operation and maintenance of the Recycled Water Treatment Facility are reimbursed by PVWMA on a quarterly basis, which will be returned to the Wastewater Enterprise Fund.

ALTERNATIVE ACTION:

No reasonable alternative is known. If the repairs are not made, the Trojan UV equipment will continue to deteriorate, which could have a significant impact on recycled water delivery through the growing season.

ATTACHMENTS AND/OR REFERENCES (IF ANY):
1) Trojan Technologies Corporation Price Quotation

QUOTATION
QM0004589
BRANDS INCLUDE: ARIA FILTRA™, AQUAFINE®, TROJANUV®, VIQUA®

TROJAN TECHNOLOGIES CORP
4310 44th St SE
Kentwood, MI 49512
USA
T: 1-866-388-0488
www.trojantechnologies.com
Sold to Ship to

CITY OF WATSONVILLE CITY OF WATSONVILLE
500 CLEARWATER LANE 500 CLEARWATER LANE
WATSONVILLE CA 95076-9556 WATSONVILLE CA 95076-9556

UNITED STATES UNITED STATES
Customer Service Contact : [email protected] Payment Terms : 0% / 00 / 30 net Internal Sales Rep : Heather Conine Delivery Terms : Customer No. : 100003679
Carrier/LSP : Reference :

Quote Date : 12-03-2025
Quote Expiry Date : 01-02-2026
Project Quantity Price Unit Net Price Tax Rate
Line Item Discount % Net Amount Tax Amount Amount
Description
10 331014-005 90.00 2,029.05/ EA 2,029.05 9.50% 199,962.88 LAMP P, SLV KIT 0YW 3+ 4PKG 182,614.50 17348.38
Components of 331014-005 Component Description Quantity 794447-0YW LAMP P, GA64T6HE FLAT BASE 360.0000 EA
316136-004 SLEEVE, QTZ UV3+ 28x25x19584PK 90.0000 EA
316144 O-RING, SLEEVE SEAL UV3+ 360.0000 EA
002268-28A4B O-RING, 28X4.5 mm NBR 360.0000 EA
901376 SPRING, COMPRESSION SST 360.0000 EA
20 015229 2.00 4,570.40/ EA 4,570.40 9.50% 10,009.18
SENSOR ASSY, UV3+ 9,140.80 868.38
30 327125-180PLGTOP 45.00 96.20/ EA 96.20 9.50% 4,740.26 CANISTER ASSY,UV3+ LUG PLG TOP 4,329.00 411.26
40 327125-180STDMID 90.00 96.20/ EA 96.20 9.50% 9,480.51 CANISTER ASSY,UV3+ LUG STD MID 8,658.00 822.51
50 327125-020STDMID 87.00 96.20/ EA 96.20 9.50% 9,164.49 CANISTER ASSY, UV3+ LUGANGMID 8,369.40 795.09
60 327125-020STDCYL 87.00 96.20/ EA 96.20 9.50% 9,164.49 CANISTER ASSY, UV3+ LUGANGCYL 8,369.40 795.09

QUOTATION
QM0004589
BRANDS INCLUDE: ARIA FILTRA™, AQUAFINE®, TROJANUV®, VIQUA®

TROJAN TECHNOLOGIES CORP
4310 44th St SE
Kentwood, MI 49512
USA
T: 1-866-388-0488
www.trojantechnologies.com
Project Quantity Price Unit Net Price Tax Rate
Line Item Discount % Net Amount Tax Amount Amount
Description
70 327125-180PLGBOT 45.00 96.20/ EA 96.20 9.50% 4,740.26 CANISTER ASSY,UV3+ LUG PLG BOT 4,329.00 411.26
80 327125-180SNRMID 6.00 89.45/ EA 89.45 9.50% 587.69
CANISTER ASSY,UV3+ LUG SNR MID 536.70 50.99
90 327125-180SNRCYL 3.00 89.45/ EA 89.45 9.50% 293.84
CANISTER ASSY,UV3+ LUG SNR CYL 268.35 25.49
100 SURCHARGE 1.00 11,330.76/ EA 11,330.76 9.50% 12,407.18 SURCHARGE 11,330.76 1076.42
110 FREIGHT AT COST 1.00 / EA 0.00 0.00% 0.00
FREIGHT AT COST 0.00 0.00
freight to be added
Goods 226,615.15 Discount 0.00 Tax Amount Total USD
Costs 11,330.76 Subtotal 237,945.91 22,604.87 260,550.78 We are applying a TEMPORARY SURCHARGE due to the increasing costs caused by the uncertainty in the global economy

QUOTATION
QM0004589
BRANDS INCLUDE: ARIA FILTRA™, AQUAFINE®, TROJANUV®, VIQUA®

TROJAN TECHNOLOGIES CORP
4310 44th St SE
Kentwood, MI 49512
USA
T: 1-866-388-0488
www.trojantechnologies.com
Terms and Conditions
All purchases of Trojan products and/or services are expressly and without limitation subject to Trojan's Terms and Conditions of Sale ("Trojan" or "SELLER"), incorporated herein by reference and published on Trojan's website https: www.trojantechnologies.com/sales-terms-conditions/ Trojan TCS are incorporated by reference into each of Trojan's offers or quotations, order acknowledgments, and invoice and shipping documents. The first of the following acts shall constitute an acceptance of Trojan's offer and not a counteroffer and shall create a contract of sale ("Contract") in accordance with the Trojan TCS, subject to Trojan's final credit approval: (i) Buyer's issuance of a purchase order document against Trojan's offer or quotation; (ii) Trojan's acknowledgement of Buyer's order; or (iii) commencement of any performance by Trojan in response to Buyer's order. Provisions contained in Buyer's purchase documents that materially alter, add to or subtract from the provisions of the Trojan’s TCS shall be null and void and not considered part of the Contract.
www.trojantechnologies.com/sales-terms-conditions

Reso No. (CM)
Meeting Date: 011326 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO. __________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

APPROVING SOLE SOURCE PURCHASE OF REPLACEMENT AND

SPARE PARTS FOR THE RECYCLED WATER ULTRAVIOLET

DISINFECTION SYSTEM FROM TROJAN TECHNOLOGIES, IN AN
AMOUNT NOT TO EXCEED $260,550.78 PLUS THE ACTUAL COST OF

FREIGHT AND TAXES WHICH ARE CALCULATED UPON FINAL
SHIPMENT; AUTHORIZING AND DIRECTING CITY MANAGER TO
EXECUTE PURCHASE ORDER; AND AUTHORIZING A BUDGET

APPROPRIATION FROM THE WASTEWATER ENTERPRISE FUND IN THE AMOUNT OF $367,000.00 TO BUDGET ACCOUNT 0710-532-7324
WHEREAS, competitive bidding requirements for the purchase of supplies, equipment and non-personal contractual services and the sale of personal property are set forth in Chapter 5 of Title 3 of the Municipal Code; and WHEREAS, subdivision (c) of § 3-5.210 exempts supplies and materials which are unique, available only from one source, or sought to match existing equipment or supplies already in use (also known as a sole source purchase); and WHEREAS, City staff is requesting a sole source purchase of proprietary replacement and spare parts from Trojan Technologies Corporation; and WHEREAS, the equipment, supplies and nonprofessional services described are unique and available only from one source and match the existing equipment or supplies already in use at the City’s Recycled Water Treatment Facility Trojan Ultraviolet Disinfection System.

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

1. This action is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15378(b)(5), in that approving a sole source purchase order for replacement and spare parts for the Recycled Water Ultraviolet Disinfection System does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical

Reso No. (CM)
Meeting Date: 011326
2 change in the environment or a reasonably foreseeable indirect physical change in the environment, and because the action constitutes organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment and if a “project,” is exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.

2. The Council finds that the purchase of replacement and spare parts for the Recycled Water Ultraviolet Disinfection System is available from one source that meets the needs of the City (also known as a sole source purchase).

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

4. That the Council hereby approves the purchase of replacement and spare parts for the Recycle Water Ultraviolet Disinfection System from Trojan Technologies Corporation, in an amount not to exceed $260,550.78 plus the actual cost of freight and taxes which are calculated upon final shipment.

5. That the City Manager is hereby authorized and directed to execute said purchase order for and on behalf of the City of Watsonville with minor revisions that may be approved by the City Manager and the City Attorney.

6. That a budget appropriation from the Sewer Enterprise Fund to the Water Recycling Operation and Maintenance Budget account number 0710-532-7324 in the amount of $367,000.00, is hereby approved.
********************************

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, January 13, 2026
TO: CITY COUNCIL
WRITTEN BY: SENIOR ENVIRONMENTAL PROJECTS ANALYST STOLZENTHALER RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR LINDBERG APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: RESOLUTION APPROVING SOLE SOURCE VENDOR AND ONE AND A

HALF-YEAR CONTRACT FOR CONSULTANT SERVICES WITH
ENVIRONMENTAL INNOVATIONS, INC., A CORPORATION, FOR

ENVIRONMENTAL SERVICES IN WATSONVILLE, IN AN AMOUNT NOT TO EXCEED $205,947.00; AND AUTHORIZING CITY M
RECOMMENDATION:

Staff recommend that the City Council adopt a resolution awarding a one-and-a-half-year contract between Environmental Innovations, Inc., and the City for a not-to-exceed amount of $205,947.00 to continue Green Business Certification & Environmental Services in Watsonville from January 1, 2026, through June 30, 2027.

BACKGROUND:

Outcomes achieved through these Environmental Services advance City and local business compliance with state and local environmental regulations. These services directly support the City’s Solid Waste Ordinances, the City’s Climate Action and Adaptation Plan, and ongoing stormwater compliance obligations.

The Green Business Program supports statewide and local sustainability objectives by helping businesses implement conservation practices within their operations. Contractservices include support for Municipal Separate Storm Sewer System (MS4) Phase II National Pollutant Discharge Elimination System (NPDES) compliance, ensuring alignment with state and federal stormwater mandates.

DISCUSSION:

2 Environmental Innovations is the sole consultant with the tools and experience to educate and document compliance with the City’s Solid Waste municipal ordinances including chapters 6-6, 6-7 and 6-10. For four years, they have outreached to a variety of 150 businesses in Spanish and English on the city’s food recovery, organics, food ware, bag bans, and stormwater regulations.

Sixteen percent of the contract is reserved for support for National Pollutant Discharge Elimination System (NPDES) compliance services. Environmental Innovations is the sole local provider for these specific NPDES services. Support for NPDES MS4 Phase II compliance includes business inventory and inspection protocol development, outfall map updates and dry-weather sampling, municipal operations review for pollution prevention Best Management Practices, maintenance of post-construction project inventories, and assistance with annual TMDL and PEAIP reporting.

The City of Watsonville’s free and voluntary Green Business Program assists businesses to achieve certification for having adopted sustainable business practices. Environmental Innovations, Inc. has been serving the City of Watsonville for 18 years to certify 76 Watsonville green business under a sole source provision (Subdivision (c) of § 3-5.210 of the Municipal Code). They are the only known professionals providing green business certification in line with the goals set by the California Green Business Network.

The Green Business Network Program is the only program that has been supported by the State of California for green business certification. Environmental Innovations staff also work for the California Green Business Network which makes them the most qualified Green Business professionals in California.

Therefore, it is in the best interest of the City for Green Business Program services to continue to be provided by Environmental Innovations, Inc.

Green Business Programs are one of the more highly noted programs supporting greenhouse gas reductions, and solid waste and stormwater compliance in municipalities throughout California.

Businesses that obtain a green certification achieve full compliance with local sustainability ordinances and state mandates related to recycling, organic waste diversion, and stormwater management.

Certification appeals to businesses because it enables them to reduce their electricity and water costs, maximize the use of resources, enhance productivity, and decrease their carbon footprint.

Furthermore, Environmental Innovations, Inc. helps ensure our program services reach minority and vulnerable businesses that historically have been marginalized from these types of programs.

Recruitment and certification efforts will focus on food sector, schools, and Spanish-speaking business owners with the goal of half or more of new enrollments being BBIPOC-owned and/or Spanish speaking businesses.

Through this contract, Environmental Innovations, Inc. will continue Green Business certification for at least thirty businesses. One hundred fifty businesses will receive required education on the City’s Solid Waste and Stormwater ordinances.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

3 Contracting with Environmental Innovations, Inc. to provide consulting services to the City is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment and because the action constitutes organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. Additionally, even if a “project,” the action would be exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.

STRATEGIC PLAN:

This project supports Strategic Plan Goals:

Community Engagement & Well-being
Economic Development and
Infrastructure & Environment
FINANCIAL IMPACT:

The total cost of this contract agreement is $205,947.00 over a period of one and a half years. The contract will initially include six months within fiscal year 2025/2026 to align the annual contract with the City’s fiscal year 2026/2027 timeframe. The contract will be funded as follows:

Fiscal Year 25/26: January 1, 2026 – June 30, 2026:
$68,649 Total allocated as follows: $51,169 from 543-7361; $17,480 from 570-7361 Fiscal Year 26/27: July 1, 2026 – June 30, 2027:
$137,298 Total allocated as follows: $102,338 from 543-7361; $34,960 from 570-7361 ALTERNATIVE ACTION:

No reasonable alternatives are known at this time.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

Reso No. (CM)
Meeting Date: 011326 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO. __________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

APPROVING SOLE SOURCE VENDOR AND ONE AND A HALF YEAR

CONTRACT FOR CONSULTANT SERVICES WITH ENVIRONMENTAL

INNOVATIONS, INC, FOR GREEN BUSINESS AND ENVIRONMENTAL

SERVICES PROGRAM IN WATSONVILLE, IN AN AMOUNT NOT TO
EXCEED $205,947.00; AND AUTHORIZING AND DIRECTING THE CITY

MANAGER TO EXECUTE SAME
WHEREAS, competitive bidding requirements for the purchase of supplies, equipment and non-personal contractual services and the sale of personal property are set forth in Chapter 5 of Title 3 of the Municipal Code; and WHEREAS, subdivision (c) of § 3-5.210 exempts supplies and materials which are unique, available only from one source, or sought to match existing equipment or supplies already in use (also known as a sole source purchase); and WHEREAS, Environmental Innovations, Inc. is the only authorized provider of Green Business certification with the California Green Business Network; local, bilingual Solid Waste ordinance compliance outreach; and National Pollutant Discharge Elimination System protocols; and
WHEREAS, the City of Watsonville provides resources for local businesses which strive to pursue Green Business Certification; and Stormwater and Solid Waste compliance; and
WHEREAS, Environmental Innovations, Inc., provides green business certification in line with the goals set by the California Green Business Network; and WHEREAS, outcomes achieved through this program directly supports the City’s requirements to provide internal and external report documentation of compliance with Waste Reduction Municipal Codes, Water Conservation Standards, Climate Action Plan goals; and Stormwater Protection mandates; and

Reso No. (CM)
Meeting Date: 011326 SWZ ______ TV ______ PWU ______
2 WHEREAS, Environmental Innovations, Inc., has provided services to the City for eighteen years to certify Watsonville Green Businesses and related Environmental Services.

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

1. Contracting with Environmental Innovations, Inc. to provide consulting services to the City is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment and because the action constitutes organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. Additionally, even if a “project,” the action would be exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.

2. The Council finds that the services of Environmental Innovations, Inc. is available from one source that meets the needs of the City Watsonville Green Business and Environmental Services Program (also known as a sole source purchase).

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

Reso No. (CM)
Meeting Date: 011326 3

4. That the Council hereby approves the Contract for Consultation Services between the City of Watsonville and Environmental Innovations, Inc. for the Green Business Certification & Services Program, in an amount not to exceed $205,947.00.

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

CONTRACT FOR CONSULTANT SERVICES BETWEEN
THE CITY OF WATSONVILLE AND ENVIRONMENTAL INNOVATIONS, INC.

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

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

Table of Contents
SECTION 1. SCOPE OF SERVICES. ............................................................................ 1 SECTION 2. TERM OF CONTRACT. ............................................................................. 1 SECTION 3. SCHEDULE OF PERFORMANCE............................................................. 2 SECTION 4. COMPENSATION. ..................................................................................... 2 SECTION 5. METHOD OF PAYMENT. .......................................................................... 2 SECTION 6. INDEPENDENT CONSULTANT. ............................................................... 2 SECTION 7. ASSIGNABILITY. ....................................................................................... 2 SECTION 8. INDEMNIFICATION. .................................................................................. 2 SECTION 9. INSURANCE.............................................................................................. 2 SECTION 10. NON-DISCRIMINATION. ......................................................................... 3 SECTION 11. TERMINATION. ....................................................................................... 3 SECTION 12. COMPLIANCE WITH LAWS. ................................................................... 4 SECTION 13. GOVERNING LAW. ................................................................................. 4 SECTION 14. PRIOR CONTRACTS AND AMENDMENTS............................................ 4 SECTION 15. CONFIDENTIAL INFORMATION............................................................. 4 SECTION 16. OWNERSHIP OF MATERIALS................................................................ 4 SECTION 17. COVENANT AGAINST CONTINGENT FEES.......................................... 4 SECTION 18. WAIVER................................................................................................... 4 SECTION 19. CONFLICT OF INTEREST....................................................................... 4 SECTION 20. AUDIT BOOKS AND RECORDS. ............................................................ 5 SECTION 21. NOTICES. ................................................................................................ 5 SECTION 22. EXHIBITS:................................................................................................ 5 o-0-o
THE PARTIES HEREBY AGREE AS FOLLOWS:

SECTION 1. SCOPE OF SERVICES.

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

SECTION 2. TERM OF CONTRACT.

The term of this Contract shall be from January 1, 2026 to June 30, 2027, inclusive.

Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

SECTION 3. SCHEDULE OF PERFORMANCE.

The services of Consultant are to be completed according to the schedule set out in Exhibit “B,” entitled “SCHEDULE OF PERFORMANCE,” which is attached hereto and incorporated herein.

Consultant will diligently proceed with the agreed Scope of Services and will provide such services in a timely manner in accordance with the “SCHEDULE OF PERFORMANCE.” SECTION 4. COMPENSATION.

The compensation to be paid to Consultant including both payment for professional services and reimbursable expenses as well as the rate and schedule of payment are set out in Exhibit “C” entitled “COMPENSATION,” which is attached hereto and incorporated herein.

SECTION 5. METHOD OF PAYMENT.

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

SECTION 6. INDEPENDENT CONSULTANT.

It is understood and agreed that Consultant, in the performance of the work and services agreed to be performed by Consultant, shall act as and be an independent Consultant and not an agent or employee of City, and as an independent Consultant, shall obtain no rights to retirement benefits or other benefits which accrue to City's employees, and Consultant hereby expressly waives any claim it may have to any such rights.

SECTION 7. ASSIGNABILITY.

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

SECTION 8. INDEMNIFICATION.

Consultant has the expertise and experience necessary to perform the services and duties agreed to be performed by Consultant under this Contract, and City is relying upon the skill and knowledge of Consultant to perform said services and duties. Consultant shall defend, indemnify and hold harmless City, its officers and employees, against any loss or liability arising out of or resulting in any way from work performed under this Contract due to the willful or negligent acts (active or passive) or errors or omissions by Consultant or Consultant's officers, employees or agents.

SECTION 9. INSURANCE.

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

B. Auto and Commercial General Liability Insurance. Consultant shall also maintain in full force and effect for the term of this Contract, automobile insurance and commercial general liability insurance with an insurance carrier satisfactory to City, which insurance shall include protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from any actual occurrence arising out of the performance of this Contract. The amounts of insurance shall not be less than the following:

Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

(1) Commercial general liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000.00 per occurrence. If such insurance contains a general aggregate limit, such limit shall apply separately to each project Consultant performs for City. Such insurance shall (a) name City, its appointed and elected officials, and its employees as insureds; and (b) be primary with respect to insurance or self-insurance programs maintained by City and (c) contain standard separation of insured's provisions.
(2) Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000.00 per occurrence. Such insurance shall include coverage for owned, hired and non-owned automobiles.

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

D. Proof of Insurance to City before Notice to Proceed to Work. Consultant shall satisfactorily provide certificates and endorsements of insurance to the City Clerk before Notice to Proceed to Work of this Contract will be issued. Certificates and policies shall state that the policy shall not be canceled or reduced in coverage without thirty (30) days written notice to City. Approval of insurance by City shall not relieve or decrease the extent to which Consultant may be held responsible for payment of damages resulting from services or operations performed pursuant to this Contract. Consultant shall not perform any work under this Contract until Consultant has obtained the required insurance and until the required certificates have been submitted to the City and approved by the City Attorney. If Consultant fails or refuses to produce or maintain the insurance required by these provisions, or fails or refuses to furnish City required proof that insurance has been procured and is in force and paid for, City shall have the right at City's election to forthwith terminate this Contract immediately without any financial or contractual obligation to the City. As a result of such termination, the City reserves the right to employ another consultant to complete the project.

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

SECTION 10. NON-DISCRIMINATION.

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

SECTION 11. TERMINATION.

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

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

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

D. In the event of termination, Consultant shall deliver to City copies of all work papers, schedules, reports and other work performed by Consultant and upon receipt thereof, Consultant Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

shall be paid in full for services performed and reimbursable expenses incurred to the date of termination.

SECTION 12. COMPLIANCE WITH LAWS.

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

SECTION 13. GOVERNING LAW.

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

SECTION 14. PRIOR CONTRACTS AND AMENDMENTS.

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

SECTION 15. CONFIDENTIAL INFORMATION.

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

SECTION 16. OWNERSHIP OF MATERIALS.

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

SECTION 17. COVENANT AGAINST CONTINGENT FEES.

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

SECTION 18. WAIVER.

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

SECTION 19. CONFLICT OF INTEREST.

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

B. No member, officer, or employee of the City, during their tenure, or for one (1) year thereafter, shall have any interest, direct or indirect, in this Contract or the proceeds thereof and Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

Consultant agrees not to allow, permit, grant, transfer, or otherwise do anything which will result in such member, officer, or employee of the City from having such interest.

SECTION 20. AUDIT BOOKS AND RECORDS.

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

SECTION 21. NOTICES.

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

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

CONSULTANT
Environmental Innovations. Inc.
113 Cooper Street, CA 95060
(831) 706-7384
SECTION 22. EXHIBITS:

Exhibit A: Scope of Services
Exhibit B: Schedule of Performance
Exhibit C: Compensation
WITNESS THE EXECUTION HEREOF, on the day and year first hereinabove written.

CITY

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

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

BY ______________________________
Samantha W. Zutler, City Attorney

CONSULTANT
BY_________________________________
Josephine Fleming, CEO
Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

EXHIBIT “A”

SCOPE OF SERVICES
Description
Environmental Innovations supports the City of Watsonville by providing targeted outreach and technical assistance to businesses, schools, and nonprofit organizations, as well as recognition through the City’s Green Business Program. These efforts will advance the City’s Climate Action Plan, fulfill requirements under the Stormwater Permit and Solid Waste Ordinances and align with broader environmental objectives, including the reduction of water consumption, waste generation, pollution, and greenhouse gas emissions. In addition, Environmental Innovations will provide ongoing support for the City’s compliance with state mandates such as Senate Bill 1383 (SB 1383) and NPDES MS4 Phase II Permit requirements.

Summary of Scope
National Pollutant Discharge Elimination System (NPDES) Services Environmental Innovations will support the City of Watsonville in meeting requirements under the NPDES MS4 Phase II Permit by providing technical assistance, field support, and documentation. Services will include:
● Developing an inventory and inspection protocol for businesses with the potential to impact stormwater quality.
● Updating the City’s outfall map and assisting with dry-weather field screening and sampling.
● Reviewing municipal operations to identify and support the implementation of pollution prevention best management practices.
● Developing and maintaining an inventory of regulated post-construction projects and conducting required annual outreach to responsible parties. ● Supporting preparation and submission of annual reporting documents, including the TMDL Report and PEAIP.

Green Business Services
Environmental Innovations will provide technical assistance and outreach to Businesses, schools, nonprofits, and government agencies to advance participation in the City of Watsonville’s Green Business Program and ensure compliance with local ordinances and environmental goals.

Specific activities will include:
● Assisting participants in completing energy, water, waste, transportation, and education measures in accordance with the City’s Green Business Program standards.

Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

● Supporting access to rebates, incentives, and free resources offered by partner agencies, state programs, and nonprofit organizations.
● Prioritizing outreach to Spanish-speaking and BIPOC-owned businesses to ensure program participation reflects City demographics.
● Coordinating combined outreach efforts to encourage food facilities and events to participate in and complete the certification process.

Solid Waste Ordinance Outreach & Compliance Services
Provide outreach, education, and compliance assistance to businesses and schools as assigned by City management. Services may include support related to the Foodware Ordinance, organics collection, food recovery requirements, SB 1383 compliance, bag ban, or other solid waste and environmental topics. Activities include conducting site visits, delivering resources and training, maintaining communication with designated contacts, and documenting compliance needs or issues for City follow-up.

Conducting targeted business outreach to support compliance with City ordinances, including:
○ Chapter 6.10 (Organics & Recycling)
○ Chapter 6.61 (Foodware)
○ Chapter 6.7 (Bag Ban)
○ Chapter 14.51.010 (Climate Action)
○ Stormwater pollution prevention mandates
Marketing and Communications
Environmental Innovations will strengthen community awareness and engagement around environmental programs by providing outreach in both English and Spanish. Services will include:
● Delivering informational presentations and tabling at partner and community events, such as Chamber events, Pajaro CDC, and other business- or school-focused gatherings. ● Promoting active and newly certified Green Businesses through ad-boosted social media campaigns.
● Contributing content for City staff and partner organizations to highlight program activities to their respective audiences.
● Creating additional opportunities for Watsonville business recognition at events in collaboration with the City and local partners.

Management and Reporting
Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

C:\Users\tami.stolzenthaler\Desktop\EI contract\Consultant Contract City EI 1.5.2026.docx 1/5/2026 9:40:37 AM

Environmental Innovations will provide timely reporting, documentation, and coordination with City staff to ensure accountability and program success. Services will include:
● Preparing quarterly slide reports and conducting review meetings in person or via video to summarize progress on all goals and deliverables ● Preparing an annual report and presentation for City Council highlighting environmental outcomes, success stories, and recommendations for program improvement
● Maintaining detailed records for Green Business services, Foodware compliance, and SB 1383 Tier 1 and Tier 2 inspections, including:
○ Compliance levels, agreements, and food donation records. ○ Digital copies or photos of completed compliance checklists and site notes. ○ Follow-up items flagged for City Analyst review.
● Supporting City staff through training, as requested
Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

C:\Users\tami.stolzenthaler\Desktop\EI contract\Consultant Contract City EI 1.5.2026.docx 1/5/2026 9:40:37 AM

EXHIBIT “B”

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

January 1, 2026 through June 30, 2027.

Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

C:\Users\tami.stolzenthaler\Desktop\EI contract\Consultant Contract City EI 1.5.2026.docx 1/5/2026 9:40:37 AM

EXHIBIT “C”

COMPENSATION
a. Total Compensation. The total obligation of City under this Contract shall not exceed $205,947.00.
b. Basis for Payment. Payment(s) to Consultant for services performed under this contract shall be made as follows and shall include payment for reimbursable expenses:

Budget Table: January 1, 2026 through June 30, 2026
Item Annual Fees Summary
NPDES Services $10,000
Support for NPDES MS4 Phase II compliance, including
business inventory and inspection protocol development, outfall map updates and dry-weather sampling, municipal operations review for pollution prevention BMPs,
maintenance of post-construction project inventories, and assistance with annual reporting (TMDL, PEAIP).

Green Business
Services
$23,900
Provide certification services to at least 15 businesses, schools, and/or nonprofits. Ensure at least 10 participants complete 50% or more of certification standards, with a minimum of 7 achieving any tier certification or
recertification. Solid Waste Ordinance
Outreach &
Compliance Services
$17,480
Provide outreach and compliance services to businesses
and schools. Conduct as assigned by City Management.

May include Foodware, Organics, Food Recovery or other
SW topics. Marketing and
Communications $6,300
Conduct outreach at up to one partner event. Promote
certified businesses through social media content.

Management and
Reporting $4,200
Provide quarterly and annual reports summarizing
outcomes, successes, and recommendations.

Staff Time Subtotal $61,880
Materials $3,500 Mileage, event costs, expenses, and business incentives Administrative Fee 5% $3,269 Discounted Fee: Invoicing and expenses Not to Exceed Total $68,649
Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

C:\Users\tami.stolzenthaler\Desktop\EI contract\Consultant Contract City EI 1.5.2026.docx 1/5/2026 9:40:37 AM

Annual Budget Table for fiscal year 2027: July 1, 2026 - June 30, 2027 Staff Billing Rates
Item Annual Fees Summary
NPDES Services $20,000
Support for NPDES MS4 Phase II compliance, including
business inventory and inspection protocol
development, outfall map updates and dry-weather
sampling, municipal operations review for pollution
prevention BMPs, maintenance of post-construction
project inventories, and assistance with annual reporting (TMDL, PEAIP).

Green Business Services $47,800
Provide certification services to at least 30
businesses, schools, and/or nonprofits. Ensure at
least 20 participants complete 50% or more of
certification standards, with a minimum of 15
achieving any tier certification or
recertification.

Solid Waste Ordinance
Outreach & Compliance
Services
$34,960
Provide outreach and compliance services to
businesses and schools. Conduct as assigned by City
Management. May include Foodware, Organics, Food
Recovery or other SW topics.

Marketing and
Communications $12,600
Conduct outreach at up to two partner events annually.

Promote certified businesses through social media
content, organize one City Council recognition event
and one networking event.

Management and
Reporting $8,400
Provide quarterly and annual reports summarizing
outcomes, successes, and recommendations.

Staff Time Subtotal $123,760
Materials $7,000 Mileage, event costs, expenses, and business incentives Administrative Fee 5% $6,538 Discounted Fee: Invoicing and expenses Annual Not to Exceed
Total
$137,298
City of Watsonville
Discounted Rate
Executive $175/hr $150
Manager $150/hr $125
Coordinator/Specialist $125/hr $115
Intern $55/hr $55
Positions
2025-26 EI
Rates
Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

C:\Users\tami.stolzenthaler\Desktop\EI contract\Consultant Contract City EI 1.5.2026.docx 1/5/2026 9:40:37 AM

c. Payment Request. Consultant shall submit a request for payment for services on a monthly basis by letter to Director, or said Director's designated representative. Such request for payment shall cover the preceding monthly period during the term hereof, shall note the City's purchase order number for this contract, shall contain a detailed listing of the total number of items or tasks or hours for which payment is requested, the individual dates on which such services were rendered, and invoices for reimbursable expenses, if any. Upon receipt in the Office of Director of said payment request, Director shall cause payment to be initiated to Consultant for appropriate compensation.

Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

Proposal
City of Watsonville Environmental Programs
January 1, 2026 – June 30, 2029
Previous Experience
Environmental Innovations, Inc. (EI), a certified Women-Owned Small Business (WOSB) and Public Benefit company (Certified B-Corp), Certified Green Business provides environmental consulting services to businesses, non-profits, institutions, and local governments in the areas of Green Business, environmental awareness, public outreach, single-use plastic reduction, Environmental Compliance/Wastewater Pretreatment, and Sustainability Planning and Management. EI has been providing services to the City of Watsonville since 2007.

We have significantly contributed to the establishment and incubation of over 30 Green Business Programs throughout California. Our impact is meticulously measured using the California Green Business Network’s (CAGBN’s) GreenBizTracker tool, and we collaborate with auditing partners to ensure accurate data reflection of the changes implemented.

Environmental Innovations (EI) leverages community-based social marketing principles to deliver environmental compliance and sustainability services to numerous municipalities across California, especially in the Monterey and SF Bay Areas. These services extend beyond Green Business initiatives to encompass energy efficiency, stormwater compliance, SB1383 compliance, and foodware ordinance readiness and support. Furthermore, EI staffs the California Green Business Network, which supports fifty Green Business Programs statewide. We have successfully trained public municipal employees to administer these programs within their jurisdictions and are proud to have assisted an estimated 700+ businesses in achieving Green Business certification. We have also mentored the development of over twenty new Green Business Programs throughout the state. As a leading partner in the California Green Business Network, EI is dedicated to developing metrics for reporting quantitative program outcomes and publicly celebrating successes with meaningful data and comparisons. To achieve this, EI manages Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

the web-based database that tracks thousands of businesses nationwide from enrollment through certification, measuring their environmental impacts.

EI has also spearheaded various municipal "beyond compliance" environmental programs. These include community-based initiatives such as the “Fryer to Fuel” program, “Sharp Solutions for Home Medicines” program, and the San Mateo County “Foodware Aware” Program, which aids in implementing the County’s Disposable Food Ware Ordinance. Additionally, EI coordinated the “Turn the Tide on Plastics” program, which originated in Seaside and expanded across the Monterey Bay Area through an EPA Pollution Prevention Grant. Similar outreach efforts for the Cities of Cupertino and Sunnyvale were launched in 2024. These programs are designed to eliminate single-use plastics and toxic chemicals while highlighting the financial and health advantages of transitioning to reusable foodware and non-toxic cleaning products in food service and daycare facilities.

Our expertise also extends to alternative transportation funding. EI successfully secured a Surface Transportation Block Grant (STBG) for the City of Scotts Valley, facilitating the resurfacing and improvement of bike and pedestrian access along a major frontage road.

Within the City of Watsonville,
EI has been instrumental in
expanding the Green Business
Program to include 77 certified
businesses, with 78% of these
being Spanish-speaking and/or
BBIPOC-owned businesses
from underserved
communities. This represents
significant progress towards
achieving a program that
accurately reflects the demographic makeup of its population. The City’s program is currently just 5% below the City's general demographic data, and serves as a leading model for the statewide network in meeting equity goals.

Since 2021, EI has played a crucial role in shaping the City of Watsonville's implementation of its foodware ordinance. With a primary focus on outreach and education to help businesses recover from the pandemic, both small local establishments and chain restaurants have made substantial progress over the years. Annual visits and ongoing support during this transition have enabled many to adopt and maintain compliance. During the years of 2024 and 2025 we prioritized compliance checks and progress documentation through a dedicated tracker, while navigating the complexities introduced by Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

state mandates such as Senate Bill 54 (SB54) and their impact on the local ordinance.

Beginning in November 2024, EI was engaged to support the City’s Environmental Education Coordinator with Senate Bill 1383 (SB 1383) school compliance. EI assisted in conducting waste assessments and provided essential materials, resources, and containers to schools most in need of compliance support.

While the specific scope of work and needs for schools are still being defined, there are established goals to help them implement sustainable and compliant changes through various methods and to develop a resource hub based on materials created by Monterey Bay Area partners. Based on this work and continued collaboration with City representatives, we are well-positioned to create and expand a program that will enable all schools to achieve compliance with SB 1383 and contribute to Climate Action goals.

Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

Task & Description
Description
Environmental Innovations will continue to support the City of Watsonville by providing targeted outreach and technical assistance to businesses, schools, and nonprofit organizations, as well as recognition through the City’s Green Business Program. These efforts will advance the City’s Climate Action Plan, fulfill requirements under the Stormwater Permit, and align with broader environmental objectives, including the reduction of water consumption, waste generation, pollution, and greenhouse gas emissions. In addition, Environmental Innovations will provide ongoing support for the City’s compliance with state mandates such as Senate Bill 1383 (SB 1383) and NPDES MS4 Phase II Permit requirements.

Summary of Scope
NPDES Services
Environmental Innovations will support the City of Watsonville in meeting requirements under the NPDES MS4 Phase II Permit by providing technical assistance, field support, and documentation. Services will include:
● Developing an inventory and inspection protocol for businesses with the potential to impact stormwater quality.
● Updating the City’s outfall map and assisting with dry-weather field screening and sampling.
● Reviewing municipal operations to identify and support the implementation of pollution prevention best management practices.
● Developing and maintaining an inventory of regulated post-construction projects and conducting required annual outreach to responsible parties. ● Supporting preparation and submission of annual reporting documents, including the TMDL Report and PEAIP.

Green Business Services
Environmental Innovations will provide technical assistance and outreach to schools, nonprofits, government agencies, and businesses to advance participation in the City of Watsonville’s Green Business Program and ensure compliance with local ordinances and environmental goals.

Specific activities will include:
● Assisting participants in completing energy, water, waste, transportation, and education measures in accordance with the City’s Green Business Program standards.

Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

● Supporting access to rebates, incentives, and free resources offered by partner agencies, state programs, and nonprofit organizations.
● Conducting targeted business outreach to support compliance with City ordinances, including:
○ Chapter 6.10 (Organics & Recycling)
○ Chapter 6.61 (Foodware)
○ Chapter 14.51.010 (Climate Action)
○ Stormwater pollution prevention mandates
● Prioritizing outreach to Spanish-speaking and BIPOC-owned businesses to ensure program participation reflects City demographics.
● Coordinating combined outreach efforts to encourage food facilities to participate in and complete the certification process.

Solid Waste Ordinance Outreach & Compliance Services
Provide outreach, education, and compliance assistance to businesses and schools as assigned by City management. Services may include support related to the Foodware Ordinance, organics collection, food recovery requirements, SB 1383 compliance, or other solid waste and environmental topics. Activities include conducting site visits, delivering resources and training, maintaining communication with designated contacts, and documenting compliance needs or issues for City follow-up.

Marketing and Communications
Environmental Innovations will strengthen community awareness and engagement around environmental programs by providing outreach in both English and Spanish. Services will include:
● Delivering informational presentations and tabling at partner and community events, such as Chamber events, Pajaro CDC, and other business- or school-focused gatherings ● Promoting active and newly certified Green Businesses through ad-boosted social media campaigns
● Contributing content for City staff and partner organizations to highlight program activities to their respective audiences
● Creating additional opportunities for Watsonville business recognition at events in collaboration with the City and local partners.

Management and Reporting
Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

Environmental Innovations will provide timely reporting, documentation, and coordination with City staff to ensure accountability and program success. Services will include:
● Preparing quarterly slide reports and conducting review meetings in person or via video to summarize progress on all goals and deliverables
● Preparing an annual report and presentation for City Council highlighting environmental outcomes, success stories, and recommendations for program improvement ● Maintaining detailed records for Green Business services, Foodware compliance, and SB 1383 Tier 1 and Tier 2 inspections, including:
○ Compliance levels, agreements, and food donation records. ○ Digital copies or photos of completed compliance checklists and site notes. ○ Follow-up items flagged for City Analyst review.
● Supporting City staff through training, as requested
Budget Tables
Budget Plan January 1, 2026 through June 30, 2026
Item Annual Fees Summary
NPDES Services $10,000
Support for NPDES MS4 Phase II compliance, including
business inventory and inspection protocol development, outfall map updates and dry-weather sampling, municipal operations review for pollution prevention BMPs,
maintenance of post-construction project inventories, and assistance with annual reporting (TMDL, PEAIP).

Green Business Services $23,900
Provide certification services to at least 15 businesses, schools, and/or nonprofits. Ensure at least 10 participants complete 50% or more of certification standards, with a minimum of 7 achieving any tier certification or recertification.

Solid Waste Ordinance
Outreach & Compliance
Services
$17,480
Provide outreach and compliance services to businesses and schools. Conduct as assigned by City Management. May include Foodware, Organics, Food Recovery or other SW topics.

Marketing and
Communications $6,300
Conduct outreach at up to one partner event. Promote certified businesses through social media content.

Management and
Reporting $4,200
Provide quarterly and annual reports summarizing outcomes, successes, and recommendations.

Staff Time Subtotal $61,880
Materials $3,500 Mileage, event costs, expenses, and business incentives Administrative Fee 5% $3,269 Discounted Fee: Invoicing and expenses Not to Exceed Total $68,649
Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

Annual Budget Table for each of three full fiscal years July 1 through June 30 (FY 2026-27, 2027-28, 2028-29)
Staff Billing Rates
Item Annual Fees Summary
NPDES Services $20,000
Support for NPDES MS4 Phase II compliance, including
business inventory and inspection protocol
development, outfall map updates and dry-weather
sampling, municipal operations review for pollution
prevention BMPs, maintenance of post-construction
project inventories, and assistance with annual reporting (TMDL, PEAIP).

Green Business Services $47,800
Provide certification services to at least 30 businesses, schools, and/or nonprofits. Ensure at least 20 participants complete 50% or more of certification standards, with a minimum of 15 achieving any tier certification or
recertification.

Solid Waste Ordinance
Outreach & Compliance
Services
$34,960
Provide outreach and compliance services to
businesses and schools. Conduct as assigned by City
Management. May include Foodware, Organics, Food
Recovery or other SW topics.

Marketing and
Communications $12,600
Conduct outreach at up to two partner events annually.

Promote certified businesses through social media content, organize one City Council recognition event and one
networking event.

Management and
Reporting $8,400
Provide quarterly and annual reports summarizing outcomes, successes, and recommendations.

Staff Time Subtotal $123,760
Materials $7,000 Mileage, event costs, expenses, and business incentives Administrative Fee 5% $6,538 Discounted Fee: Invoicing and expenses Annual Not to Exceed
Total
$137,298
City of Watsonville
Discounted Rate
Executive $175/hr $150
Manager $150/hr $125
Coordinator/Specialist $125/hr $115
Intern $55/hr $55
Positions
2025-26 EI
Rates
Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

Staff Bios
Josephine (Jo) Fleming
Owner and President, Environmental Innovations, Inc.

Jo has 30 years experience in the environmental realm in a wide breadth of scientific research, environmental remediation, commercial/industrial pollution prevention, environmental outcome data and community-based social marketing programs to address some of the most pressing environmental problems of our time. Jo was integral to establishing over twenty regional Green Business Programs, a statewide Green Business Network, a groundbreaking fryer to fuel program, and one of the first comprehensive pharmacy collections of used sharps and unwanted medicine waste for safe disposal. She has been involved in implementation of municipal foodware ordinances, organic recycling and edible food recovery, and stormwater and wastewater compliance. Jo enjoys designing methods to measure success before implementing programs and has environmental outcome data for every project. She has a Bachelor of Science in Environmental Science and a Minor in Spanish. She has helped green hundreds of businesses, and was the Executive Director of the California Green Business Network for 10 years and is the founder of Environmental Innovations, Inc.. Jo led the company to grow ethically as a certified B Corp, attracting and retaining top talent and a diverse team.

Julianne Rhodes
Senior Scientist and Senior Program Manager, Environmental Innovations, Inc.

Julianne has worked in both the public and private sectors developing specifications for on-site regulatory compliance of projects involving the assessment and removal of hazardous materials from 1987 to 1996. She gained extensive project, personnel, technology and contract management experience during her 12 years as engineering manager at Cruzio.com and subsequently earned a Masters in Applied Marine and Watershed Science at CSU Monterey Bay. Her focus on water quality and conservation efforts has led to projects working for the Monterey Peninsula Water Management District, Ventana Wilderness Alliance, Coastal Watershed Council, Farmers for Water Quality, the Watershed Institute at CSUMB, the Greater Monterey Integrated Regional Water Management Group, City of Scotts Valley, and the City of Salinas.

She has developed Storm Water Pollution Prevention Plans (SWPPPs) for both the municipal and industrial NPDES permit programs.

Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

Jakki Castorena-Davila
Bilingual Sustainability Manager, Environmental Innovations, Inc.

Jakki is EI's Monterey Bay Area Bilingual Programs Manager, focusing on community engagement and outreach programs. She leads initiatives that empower local resource-constrained communities, building on her experience in sales, public outreach, and local partnership building. Jakki is dedicated to creating sustainable and impactful programs that address key community needs. She brings the passion and determination to ensure equitable access to her hometown and the greater community.

Claudia Villalta-Mejia
Bilingual Sustainability Consultant, Environmental Innovations, Inc.

Claudia Villalta-Mejia is a Bilingual Sustainability Consultant supporting sustainability projects across Santa Cruz County with a background in corporate sustainability. As the lead coordinator for the county’s Green Business Program, she certifies dozens of small and local businesses annually, serving as a bridge between grants and community services and businesses in need. Passionate about environmental compliance, Claudia guides the Cities of Capitola and Scotts Valley on SB 1383 compliance. She simplifies state and local requirements for businesses through targeted education and outreach, empowering them to comply with these important regulations. A proud local, Claudia also actively supports the regional Green Schools Program and the Foodware Ordinance compliance in Watsonville, demonstrating her commitment to fostering a sustainable home county.

Bryan Garcia
Bilingual Sustainability Consultant, Environmental Innovations, Inc.

Bryan is a proficient Sustainability Consultant who is skilled in two languages. His commitment to environmental causes began during his time at the University of California, Davis, where he pursued a major in International Agricultural Development. Participating in a variety of internships and programs during this time sparked a deep enthusiasm for tackling real-world Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

issues, which now drives his commitment to his present role. Utilizing the skills he has developed as a problem solver, effective communicator, leader, and dedicated learner, he returns to his native community Docusign Envelope ID: A0F92808-1FB1-4732-A282-DF78BFB2D810

12/15/2025
Business Professional Insurance Associates
1519 South B Street
San Mateo, CA 94402
License #: 0D69286
Certificates
(650)341-4484 (650)341-4465
[email protected]
00029537-250424075133 18
Environmental Innovations Inc.
307 Laguna Street
Santa Cruz, CA 95060-6109
ACE PROPERTY & CASUALTY INSURANCE COMPANY 20699
A X Y Y D0293548A 04/16/2025 04/16/2026
X
X
2,000,000
1,000,000
5,000
2,000,000
4,000,000
4,000,000
ACE PROPERTY & CASUALTY INSURANCE COMPANY 20699
A Y D0293548A 04/16/2025 04/16/2026
X X
2,000,000
ACE PROPERTY & CASUALTY INSURANCE COMPANY 20699
A X X D02935491 04/16/2025 04/16/2026
X 0
3,000,000
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EMPLOYERS Preferred Insurance Company 10346
B EIG592280500 04/16/2025 04/16/2026 X
1,000,000
1,000,000
1,000,000
Houston Casualty Company 42374
C Cyber Liability H25NGP253342 04/16/2025 04/16/2026 Aggr/Ea Claim/Ded $1mil/$1mil/$2,500 Hiscox Insurance Company Inc. 10200
D Professional Liab P101.082.873.3 04/22/2025 04/22/2026 Aggr/Ea Claim/Ded $2mil/$2mil/$500 City of Watsonville, its appointed and elected officials, and its employees are included as an Additional Insured in respects to the Insured's business operations. Additional Insured applies to the General Liability and Auto Liability Policies. Insurance is Primary and Non-Contributory. Waiver of Subrogation applies for the General Liability policy.

City of Watsonville
Att: City Clerk
272 Main St., Suite 400
Watsonville, CA 95076
(CER)
Printed by CER on 12/15/2025 at 10:00AM
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AND EMPLOYERS' LIABILITY
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

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

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

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

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

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

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

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

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

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

COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

CERTIFICATE HOLDER CANCELLATION
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ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD

CERTIFICATE OF LIABILITY INSURANCE
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1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, January 13, 2026
TO: CITY COUNCIL
WRITTEN BY: ASSISTANT PUBLIC WORKS & UTILITIES DIRECTOR GREEN RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR LINDBERG APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: AUTHORIZE PURCHASE OF A NEW WATER TRUCK FOR THE LANDFILL

FROM ARATA EQUIPMENT COMPANY (PETERBILT DISTRIBUTOR) IN A TOTAL AMOUNT NOT TO EXCEED $369,323.14 PLUS THE ACTUAL COST

OF FREIGHT AND TAXES WHICH ARE CALCULATED UPON FINAL

SHIPMENT
RECOMMENDATION:

Adopt a resolution authorizing the purchase of a new Peterbilt Water Truck for the landfill through their distributor, Arata Equipment Company, utilizing the purchasing authority of Sourcewell Purchase Agreement No. 032824-PMC, in an amount not to exceed $369,323.14 plus the actual cost of freight and taxes which are calculated at the time of final shipment; and authorize and direct the City Manager to execute the purchase agreement and any adjustments that may be necessary to execute the purchase.

BACKGROUND:

The City recently completed the installation of the groundwater protection system in Cell IV of the City’s existing landfill, and started receiving, compacting, and disposing of solid waste at the facility earlier this year. In the process of operation during the rainy season, the City’s existing water truck is near the end of useful life and is struggling to keep up with demands for leachate hauling required to keep the landfill in compliance with state regulations, making the purchase of a new water truck urgent.

DISCUSSION:

The Solid Waste Division resumed receiving refuse at the City’s landfill in April of 2025 to help control disposal costs. Leachate is the liquid that develops when water percolates through a landfill cell, which has strict requirements for handling and disposal to meet state regulatory requirements. The City has an

2 existing water truck it utilizes for routine handling and disposal of the leachate produced by the City’s landfill. This water truck is nearing end of useful life and had been planned to be replaced in the next couple of years in the Solid Waste Capital Improvement Plan (CIP). However, the recent rainy season has placed a burden on this rapidly aging equipment, requiring more frequent repairs which limits the ability for landfill operations staff to keep up with leachate disposal requirements, and requires support from outside contractors during and immediately following heavier rain events. Therefore, staff recommends the City purchase a new water truck for leachate disposal sooner than planned.

Staff reached out to local distributers awarded purchasing contracts through Sourcewell and identified a Peterbilt water truck in stock through Arata Equipment Company, the local Peterbilt distributor. The City’s purchasing policies, specifically subdivision (e) of § 3-5.210 of the Watsonville Municipal Code, exempts purchases made cooperatively with one (1) or more units of government through cooperative purchasing programs substantially the same as the City of Watsonville. The City typically purchases vehicles through a cooperative purchasing source such as Sourcewell (Formerly NJPA). Staff received a quote from the Sourcewell cooperative purchasing low bidder, Arata Equipment Company, for the purchase of one (1) Peterbilt Model 548 cab and chassis with Truck Works water tank body, in an amount of $293,343, not including delivery and freight.

Staff therefore recommends that Council approve the purchase of a new water truck for the landfill, in the amount of $369,323.14 plus any actual delivery and freight charges or final sales tax adjustments which are calculated at the time of shipment.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

This action is exempt from the requirements of the California Environmental Quality Act (CEQA) in that purchasing of equipment is an administrative task that does not meet CEQA's definition of a “project,” because the action constitutes organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment and if a “project,” is exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.

STRATEGIC PLAN:

This purchase supports Strategic Plan Goal:

Infrastructure & Environment
FINANCIAL IMPACT:

Staff has routed an internal budget transfer memo to transfer available unused funds from the PDO improvements CIP which has been delayed into the Landfill Vehicles CIP. Once the transfer is completed, there will be sufficient funds available in budget account 912-7805-15246 to cover the full amount of this purchase order.

3 ALTERNATIVE ACTION:

No reasonable alternatives are known at this time. Council could elect not to approve the purchase which will require the use of a contract leachate hauler which would increase landfill operating costs.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

1. Quote from Arata Equipment Company for purchase of new Peterbilt water truck.

Date January 6th, 2026
Name: Mr. William Smith
Client: City of Watsonville
Address: 320 Harvest Drive
Watsonville California
95076
Model:

Chassis
MFG: Peterbilt Capacity:3600 Gallons
Engine: Paccar PX-9 - 350 H.P. Diesel Powered
Transmission:Allison 3000 Series Model: 548
Driving config. Left Hand Drive Cab: Conventional
Cab color: White / Frame Black Body Color: White
N.C. DMV - E Plated by Arata - no charge
$369,323.14 Grand Total - Turn Key Price
$32,661.14 Sales Tax @ 9.75%
$1,676.00 C.A.R.B. Mandatory Warranty
N.C. Including Modifications discussed on 1-5-26
consisting of rear discharge chute via in-cab controls
Pricing Summary
Peterbilt Model 548 Cab & Chassis with Truck Works Body $334,986.00 Complete truck and Body Price
Attachment 1

1 Reso No. ______ (CM)
Meeting Date: 011326 SWZ ______ TV ______ PWU ______
RESOLUTION NO. __________(CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

AUTHORIZING THE PURCHASE ORDER OF ONE WATER TRUCK FROM

ARATA EQUIPMENT COMPANY, THROUGH THE PURCHASING

AUTHORITY OF SOURCEWELL (FORMERLY NJPA), IN AN AMOUNT OF $369,323.14 PLUS ANY ADJUSTMENTS FOR THE ACTUAL COST OF

FREIGHT, DELIVERY, AND TAXES WHICH ARE CALCULATED AT THE TIME OF FINAL SHIPMENT; AND AUTHORIZING THE CITY MANAGER TO

EXECUTE THE PURCHASE ORDER (FUNDED FROM SOLID WASTE
ENTERPRISE FUND [0740])
WHEREAS, competitive bidding requirements for the purchase of supplies, equipment and non-personal contractual services and the sale of personal property are set forth in Chapter 5 of Title 3 of the Municipal Code; and WHEREAS, subdivision (e) of § 3-5.210 exempts purchases made cooperatively with one (1) or more units of government through cooperative purchasing programs substantially the same as the City of Watsonville’s; and WHEREAS, the City received a quote from Arata Equipment Company, the local Peterbilt distributor and a member of Sourcewell (formerly NJPA) through purchasing agreement #032824-PMC, for the purchase of one (1) water truck, in an amount of $369,323.14, not including delivery and freight; and
WHEREAS, City staff has evaluated the bid process used by Sourcewell (formerly NJPA) and determined that its bid process is similar to that of the City of Watsonville.

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

1. This action is exempt from the requirements of the California Environmental Quality Act (CEQA) in that purchasing of equipment is an administrative task that does not meet CEQA's definition of a “project,” because the action constitutes organizational

2 Reso No. ______ (CM)
Meeting Date: 011326
or administrative activities of governments that will not result in direct or indirect physical changes in the environment and if a “project,” is exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.

2. This purchase is exempt from the purchasing procedures of Chapter 5 of Title 3 of the Municipal Code as a purchase made cooperatively with one (1) or more units of government under subdivision (e) of § 3-5.210 of the Municipal Code

3. That the Council hereby authorizes the purchase order of one water truck to be used by the Solid Waste Division from Arata Equipment Company, through the purchasing authority of Sourcewell (formerly NJPA), in the amount of $369,323.14 plus any adjustments for the actual cost of freight, delivery, and sales tax calculated at the time of final shipment, funded by the Solid Waste Enterprise Fund [0740].

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, January 13, 2026
TO: CITY COUNCIL
WRITTEN BY: WASTEWATER DIVISION MANAGER TELLEZ
RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR LINDBERG APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: AUTHORIZE BUDGET APPROPRIATION TO FUND ONE (1) TEMPORARY

FULL-TIME EQUIVALENT WASTEWATER OPERATOR III TO PROVIDE

OPERATIONAL COVERAGE DURING EXTENDED MEDICAL LEAVE
RECOMMENDATION:

Staff recommend that the City Council adopt a resolution authorizing a budget appropriation in an amount not to exceed $159,232.63 from the Wastewater Enterprise Fund to fund one (1) temporary Full-Time Equivalent (FTE) Wastewater Operator III position to provide operational coverage during the extended medical leave of an incumbent employee.

DISCUSSION:

The Wastewater Division operates and maintains critical infrastructure necessary to protect public health, environmental quality, and regulatory compliance. Operations are continuous and require licensed personnel to meet State Water Resources Control Board requirements and permit conditions.

An incumbent Wastewater Division employee is currently on approved extended medical leave.

Currently, the duration of the leave is unknown. While the City fully supports the employee’s recovery and return to work, the absence has created an ongoing staffing gap in a classification essential to daily plant operations.

Historically, minimum staffing levels provided necessary operational redundancy to ensure regulatory compliance, emergency response capability, and sustainable workload. The current vacancy has required temporary redistribution of duties and increased reliance on overtime, which is not sustainable for an extended or indefinite period.

2 Staff proposes funding one (1) temporary Wastewater Operator III position to provide operational continuity during this period. The Operator III classification ensures sufficient licensing coverage and operational flexibility to backfill higher-level duties as required.

This request is temporary in nature and structured to allow the position to be discontinued upon the employee’s return or when operational conditions no longer require additional staffing.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

Authorizing a budget appropriation to fund one temporary full-time Wastewater Operator III is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and under 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 it is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment and if a “project,” it is exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.

STRATEGIC PLAN:

Efficient and Well-performing Government
FINANCIAL IMPACT:

The cost to fund one (1) temporary Full-Time Equivalent Wastewater Operator III position is not to exceed $159,232.63 annually, fully burdened, including salary and benefits.

Funding will be provided by the Wastewater Enterprise Fund and will be expended proportionally based on the actual duration of the employee’s absence. If the incumbent employee returns prior to the end of the fiscal year, expenditures will be prorated accordingly, and any unspent appropriations will remain within the fund.

This action is expected to partially offset overtime expenditure and reduce operational risk associated with prolonged staffing shortages in a regulated treatment environment.

ALTERNATIVE ACTION:

The City Council could choose not to authorize the temporary FTE; however, failure to provide staffing coverage during an extended and uncertain absence would increase overtime reliance, elevate compliance and safety risks, and adversely impact on the Division’s ability to sustain required service levels.

3 ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

1 Reso No. ______ (CM)
Meeting Date: 011326 SWZ ______ TV ______ PWU ______
RESOLUTION NO. (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE AUTHORIZING BUDGET APPROPRIATION IN AN
AMOUNT NOT TO EXCEED $159,232.63 FROM THE WASTEWATER
ENTERPRISE FUND TO FUND ONE (1) TEMPORARY FULL TIME

WASTEWATER OPERATOR III TO PROVIDE OPERATIONAL

COVERAGE DURING EXTENDED MEDICAL LEAVE
WHEREAS, the Wastewater Division operates and maintains critical infrastructure necessary to protect public health, environmental quality, and regulatory compliance; and WHEREAS, wastewater treatment operations require continuous staffing by properly trained and licensed personnel to meet State Water Resources Control Board requirements and permit conditions; and
WHEREAS, an incumbent Wastewater Division employee is currently on an approved extended medical leave, the duration of which is unknown; and WHEREAS, City staff proposes to fund one full-time Wastewater Operator III position in order to ensure continuity of operations during the extended absence.

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

1. Authorizing a budget appropriation to fund a temporary Wastewater Operator III position does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.

2. That the budget appropriation in an amount not to exceed $159,232.63 from the Wastewater Enterprise Fund to fund one full-time temporary Wastewater Operator III to provide operational coverage during extended medical leave is hereby approved. *******************************

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, January 13, 2026
TO: CITY COUNCIL
WRITTEN BY: ASSISTANT FINANCE MANAGER NOLASCO
RECOMMENDED BY: ADMINISTRATIVE SERVICES DIRECTOR DURAN
APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: RESOLUTION APPROVING CITY OF WATSONVILLE REDEVELOPMENT

SUCCESSOR AGENGY RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 26-27)
RECOMMENDATION:

Adopt a resolution approving the City of Watsonville Redevelopment Successor Agency Recognized Obligation Payment Schedule for July 1, 2026, through June 30, 2027 (ROPS 26-27).

BACKGROUND:

Approval of the ROPS 26-27 is necessary to continue to pay the obligations of the City of Watsonville’s Redevelopment Successor Agency through fiscal year 2026-27.

DISCUSSION:

As of February 1, 2012, all redevelopment agencies throughout the State were required to dissolve as a result of the passage of ABX1-26 and the subsequent ruling in the Matosantos Case by the California Superior Court.

As part of this legislation, Recognized Obligation Payment Schedules (ROPS) must be prepared by successor agencies and approved by oversight boards for prospective periods. The approved ROPS become the budgetary documents upon which County Auditor-Controllers distribute what was formerly tax increment to successor agencies, allowing them to pay approved, enforceable obligations and administrative costs during the applicable period. Auditor-Controllers deposit the former tax increment attributable to redevelopment agencies into a new account, the Redevelopment Property Tax Trust Fund (“RPTTF”). Any RPTTF dollars not required to pay enforceable obligations and approved

2 administrative costs during the period are retained by and distributed by Auditor-Controllers to the affected taxing entities, including schools and special districts.

AB 1484, adopted in June 2012 as clean-up legislation to ABX1-26, requires the preparation of a 12-month prospective ROPS for the period from July 1, 2026, through June 30, 2027. The ROPS must be adopted by the Oversight Board and transmitted to the State Department of Finance (DOF) before February 1, 2026 (see Exhibit A to the resolution). The law further provides that DOF will issue its determination by April 15, 2026.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

The preparation and submittal of this report are not subject to CEQA, as the action is not a project as defined in Section 15378(b)(2) of the Public Resources Code, and therefore no further review is required.

STRATEGIC PLAN:

This report addresses the following Strategic Plan Goal:

Fiscal Health
FINANCIAL IMPACT:

If adopted, ROPS 26-27 will authorize the RPTTF to make payments of $420,191 for enforceable obligations incurred during this period.

ALTERNATIVE ACTION:

No reasonable alternatives are known currently
ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

1 Reso No. ______ (CM)
Meeting Date: 011326 SWZ ______ TV ______ Finance ______ RESOLUTION NO. (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE, ACTING AS THE SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF WATSONVILLE,
PURSUANT TO HEALTH & SAFETY CODE SECTIONS 34171(j) AND
SECTIONS 34173, APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD COMMENCING JULY 1, 2026, THROUGH JUNE 30, 2027, AS REQUIRED BY HEALTH & SAFETY CODE SECTION 34177(l)(1)
WHEREAS, in accordance with the provisions of the California Community Redevelopment Law (Health & Safety Code Section 33000, et seq. (“CRL”), the City Council of the City of Watsonville previously established the Redevelopment Agency of the City of Watsonville, a public body, corporate and politic (“Agency”) to carry out the purposes of and exercise the powers granted to community redevelopment agencies in accordance with the CRL; and
WHEREAS, on February 1, 2012, the Agency was dissolved in accord with Assembly Bill 1X 26 (Stats. 2011, 1st Ex. Sess., Ch. 5) (“AB 26”), and its rights, powers, duties and obligations were transferred to a “successor agency” (as defined by CRL Section 34171(j) and Section 34173); and
WHEREAS, in accord with AB 26, on January 10, 2012, the City Council adopted Resolution No. 4-12 (CM) becoming both the Agency’s successor agency (“Successor Agency”) and its successor for housing functions in accord with CRL Sections 34173 and 34176; and
WHEREAS, pursuant to Section 34177(l)(1) the Successor Agency is required to prepare “Recognized Obligation Payment Schedules” (each such Schedule, a “ROPS”) that must be submitted to the Auditor Controller, and the State Department of Finance; and

2 Reso No. ______ (CM)
Meeting Date: 011326
WHEREAS, each ROPS must identify the funds required by the Successor Agency to satisfy the Agency’s enforceable obligations and to pay administrative expenses; and
WHEREAS, on February 26, 2013, the Oversight Board adopted Resolution No. 4-13 (OB), approving an “Amended and Restated Cooperation Agreement for Administrative Services” (“Cooperation Agreement”), whereby the City agreed to provide administrative services for the Successor Agency for a total amount of $10,000, to be paid pursuant to terms contained in the Cooperation Agreement until such time as the Oversight Board requests a reduction in such amount; and WHEREAS, City staff has prepared a ROPS for the period commencing July 1, 2026, through June 30, 2027, (“July 2026 – June 2027 ROPS”), a copy of which is attached to this Resolution as Exhibit A; and
WHEREAS the July 2026 – June 2027 ROPS was prepared in accordance with the requirements of CRL Section 34177 and other applicable law.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY

OF WATSONVILLE, ACTING AS THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF WATSONVILLE, AS FOLLOWS:

1. The City Council approves the July 2026 – June 30, 2027, ROPS, in the form attached to this Resolution as Exhibit A, including the aggregated payment schedules attached to it.

2. The City Manager is directed to submit the July 2026 – June 2027 ROPS to the County of Santa Cruz Oversight Board (formed in accord with CRL Section 34179) for approval in accord with CRL Section 34177(l)(2)(B).

3 Reso No. ______ (CM)
Meeting Date: 011326

3. Following the Oversight Board’s approval of the July 2026 – June 30, 2027 ROPS, as provided in Section 2, above, the City Manager is directed to: (1) submit the approved July 2026 – June 30, 2027 ROPS to the Santa Cruz County Auditor/Controller, and the State Department of Finance, and (2) concurrently post the approved July 2026 – June 30, 2027 ROPS on the City’s internet website.

4. The City Council finds and determines that the approval of the July 2026 – June 30, 2027, ROPS is not a “project” requiring environmental review under the California Environmental Quality Act (Public Resources Section 21000 et seq.) because it pertains to governmental fiscal activities which do not involve any commitment to any specific project which may result in a potentially physical impact on the environment. ********************************

Recognized Obligation Payment Schedule (ROPS 26-27) - Summary Filed for the July 1, 2026 through June 30, 2027 Period Successor Agency: Watsonville
County: Santa Cruz
Current Period Requested Funding for Enforceable
Obligations (ROPS Detail)
26-27A Total
(July -
December)
26-27B Total
(January -
June)
ROPS 26-27
Total
A Enforceable Obligations Funded as Follows (B+C+D) $ - $ - $ - B Bond Proceeds - - -
C Reserve Balance - - -
D Other Funds - - -
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 364,283 $ 55,908 $ 420,191 F RPTTF 359,283 50,908 410,191
G Administrative RPTTF 5,000 5,000 10,000
H Current Period Enforceable Obligations (A+E) $ 364,283 $ 55,908 $ 420,191 Certification of Oversight Board Chairman:

Name Title
Pursuant to Section 34177 (o) of the Health and Safety
code, I hereby certify that the above is a true and
accurate Recognized Obligation Payment Schedule for
the above named successor agency. /s/
Signature Date
Exhibit A

Watsonville
Recognized Obligation Payment Schedule (ROPS 26-27) - ROPS Detail July 1, 2026 through June 30, 2027

A B C D E F G H I J K L M N O P Q R S T U V W
Item
# Project Name Obligation Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired
ROPS
26-27
Total
ROPS 26-27A (Jul - Dec)
26-27A
Total
ROPS 26-27B (Jan - Jun)
26-27B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds
RPTTF
Admin
RPTTF
$510,681 $420,191 $- $- $- $359,283 $5,000 $364,283 $- $- $- $50,908 $5,000 $55,908 4 Project
management
projected time
& costs for
Bond
Disclosure
Project
Management
Costs
05/19/
2004
09/01/2033 City of
Watsonville
Bond
covenants -
annual
continuing
disclosures
All 48,000 N $6,366 - - - 3,183 - $3,183 - - - 3,183 - $3,183 17 Projected
Manabe-Ow
OPA
Management
costs

OPA/DDA/
Construction
03/03/
2011
03/03/2031 City of
Watsonville
Funding for
project
management
of business
park
All 51,306 N $10,000 - - - 5,000 - $5,000 - - - 5,000 - $5,000 28 City of
Watsonville
Administration
Admin Costs 01/01/
2014
06/30/2014 City of
Watsonville
City of
Watsonville
Administration
All 10,000 N $10,000 - - - - 5,000 $5,000 - - - - 5,000 $5,000 36 2016 Tax
Allocation
Refunding
Bonds Series

A (P&I)
Refunding
Bonds
Issued After
6/27/12
04/26/
2016
08/01/2033 US Bank Refunding
2004 Tax
Allocation
Bonds Series
A (P&I) and
B1 (P&I)
389,575 N $389,575 - - - 351,100 - $351,100 - - - 38,475 - $38,475 38 U S Bank
trustee fees -
2016
Refunding
Bonds
Fees 04/26/
2016
08/01/2033 US Bank Bond
covenants -
annual trustee
fees
11,500 N $3,950 - - - - - $- - - - 3,950 - $3,950
39 California
Municipal
Statistics
Fees 04/26/
2016
08/01/2033 California
Municipal
Statistics
Bond
covenants -
annual
continuing
disclosure
- N $- - - - - - $- - - - - - $-
40 Wildan Fees 04/26/
2016
08/01/2033 Wildan Bond
covenants -
annual filing to
bond holders
300 N $300 - - - - - $- - - - 300 - $300
Exhibit A

Watsonville
Recognized Obligation Payment Schedule (ROPS 26-27) - Report of Cash Balances July 1, 2023 through June 30, 2024
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation.

A B C D E F G H
ROPS 23-24 Cash Balances
(07/01/23 - 06/30/24)
Fund Sources
Comments
Bond Proceeds Reserve Balance Other Funds RPTTF
Bonds issued
on or before
12/31/10
Bonds issued
on or after
01/01/11
Prior ROPS
RPTTF and
Reserve
Balances retained
for future
period(s)
Rent, grants,
interest, etc.

Non-Admin
and Admin
1 Beginning Available Cash Balance (Actual 07/01/23)
RPTTF amount should exclude "A" period distribution
amount.
(63,530)
2 Revenue/Income (Actual 06/30/24)
RPTTF amount should tie to the ROPS 23-24 total
distribution from the County Auditor-Controller
53,247 2,083,057
3 Expenditures for ROPS 23-24 Enforceable Obligations
(Actual 06/30/24)
- 2,101,313
4 Retention of Available Cash Balance (Actual 06/30/24) RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
5 ROPS 23-24 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 23-24 PPA
form submitted to the CAC
No entry required 500
6 Ending Actual Available Cash Balance (06/30/24)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
$- $- $- $53,247 $(82,286)
Exhibit A

Watsonville
Recognized Obligation Payment Schedule (ROPS 26-27) - Notes July 1, 2026 through June 30, 2027
Item # Notes/Comments
4 17
28 36
38 39
40 Exhibit A

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, January 13, 2026
TO: CITY COUNCIL
WRITTEN BY: ASSISTANT PUBLIC WORKS & UTILITIES DIRECTOR FONTES RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR LINDBERG APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: EVAN CIRCLE TRACT 1518 SUBDIVISION FINAL MAP, AND PUBLIC AND

ON-SITE IMPROVEMENT AGREEMENT
RECOMMENDATION:

Staff recommend that the City Council adopt resolutions approving:

1. Public and On-Site Improvement Agreement; and

2. Final Map for Evan Circle Tract Number 1518
BACKGROUND:

On September 26, 2006, Council adopted Resolution No. 225-06 (CM), adopting a negative declaration with mitigation measures (PP2006-141), to allow for the construction of 19 single family units with a mini park on three parcels totaling 2.62 acres at 36, 42, and 54 Airport Road (APNs 015-391-20, -21, & -23).

Also on September 26, 2006, Council adopted Resolution No.226-06 (CM), approving a Special Conditional Use Permit with Design Review (PP2006-141), to allow for the construction of 19 single family units with a minipark on three parcels totaling 2.62 acres at 36, 42, and 54 Airport Road (APNs 015-391-20, -21, & - 23).

Also on September 26, 2006, Council adopted Resolution No.227-06 (CM), approving a tentative subdivision map, Tract No. 1518 (PP2006-141), to allow for the construction of 19 single family units with a mini park on three parcels totaling 2.62 acres at 36, 42, and 54 Airport Road (APNs 015-391-20, -21, & - 23).

On February 12, 2008, Council adopted Resolution No. 24-08 (CM), to allow for a modification and one year time extension (PP2007-371) to Tentative Tract Map No. 1518 and three phase construction of 19

2 single family units cluster lot subdivision with a mini park on three parcels totaling 2.62 acres at 36, 42, and 54 Airport Road (APNs 015-391-20, -21, & -23).

On November 13, 2018, Council adopted Resolution No. 4-18 (SHA), in its capacity as the successor to the housing assets and functions to the former redevelopment agency of the City of Watsonville: 1) approving disposition and development agreement (36 Airport Road) between the successor housing agency to the former redevelopment agency of the City of Watsonville and Habitat for Humanity Monterey Bay, a corporation, for the sale and development of 36 Airport Road (APN: 015-391-20) as an affordable, selfhelp, single-family, home ownership development; 2) making certain findings pursuant to Health and Safety Code section 33433 in connection therewith; and 3) authorizing and directing the City Manager to execute all documents with clarifying and/or non-substantive modifications, necessary to implement agreement.

On August 30, 2023, an application for an Administrative Use Permit, Density Bonus, Major Subdivision, and Tentative Map for construction of a thirteen-unit subdivision with thirteen new one- and two-story single-family residences on two vacant parcels (APN: 015-391-20 &19) totaling 50,229 square feet located at 36 Airport Road, Watsonville, California, was filed by Bill Kempf, architect and applicant on behalf of Habitat for Humanity, property owner.

On October 22, 2024, Council adopted Resolution No. 225-24 (CM) approving a major subdivision and a tentative map for Evan Circle, Tract 1518, Phase III for a 13-unit subdivision located at 36 Airport Road.

On October 22, 2024, Council adopted Resolution No. 224-24 (CM) approving a density bonus for a 13- unit subdivision located at 36 Airport Road and finding the project Categorically Exempt under the California Environmental Quality Act (CEQA).

DISCUSSION:

Habitat for Humanity Monterey Bay, a California Nonprofit Public Benefit Corporation, prepared and submitted a Final Map and Public and On-Site Improvement Agreement for approval for Evan Circle Tract 1518 to develop 13 lots within the subdivision. The Improvement Agreement provides for constructing infrastructure improvements such as grading, drainage, and utilities within one to three years of agreement approval and provides financial guarantees to complete the work in the event of default.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

The project is categorically exempt from review under the California Environmental Quality Act (CEQA) pursuant to California Code of Regulations Title 14 Section 15332 (In-Fill Exemption). The project meets the conditions of Section 15332, including: the project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations; the project occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses; the project site has no value as habitat for endangered, rare, or threatened species; approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and the site can be adequately served by all required utilities and public services.

3 Additionally, none of the exceptions in section 15300.2 apply: the project is not located on an environmental resource of hazardous or critical concern; there would not be a cumulative impact from successive projects of the same type in the same place; there is no evidence that there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances; the project is not located near a scenic highway or on a hazardous waste site or on a historical resource.

STRATEGIC PLAN:

This project is consistent with the Strategic Plan Priority:

Housing
Infrastructure & Environment
FINANCIAL IMPACT:

The project will pay the fees identified in the Improvement Agreement, which include fees for reviewing the Improvement Plans, processing the Improvement Agreement, reviewing and processing the Final Map, as well as utility connection fees and impact fees.

ALTERNATIVE ACTION:

Not approving the Improvement Agreement and/or the Final Map is inconsistent with City Council’s previous approval of the Tentative Map and would violate provisions of the State Map Act.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

Reso No. ______ (CM)
Meeting Date: 011326 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING PUBLIC AND ON-SITE IMPROVEMENT

AGREEMENT BETWEEN THE CITY OF WATSONVILLE AND HABITAT

FOR HUMANITY MONTEREY BAY, A CALIFORNIA NONPROFIT

PUBLIC BENEFIT CORPORATION, FOR THE EVAN CIRCLE
SUBDIVISION, TRACT NO. 1518 LOCATED AT 36 AIRPORT ROAD
(APNS: 015-391-19 & 20), WATSONVILLE, CALIFORNIA, AND

AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE
SAME

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

1. On October 22, 2024, the City Council adopted Resolution No. 204-24 (CM) finding that the project, a 13 unit subdivision located at 36 Airport Road, is categorically exempt from review under the California Environmental Quality Act (CEQA) pursuant to California Code of Regulations Title 14 Section 15332 (In-Fill Exemption). The project meets the conditions of Section 15332, including: the project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations; the project occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses; the project site has no value as habitat for endangered, rare, or threatened species; approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and the site can be adequately served by all required utilities and public services. Additionally, none of the exceptions in section 15300.2 apply: the project is not located on an environmental resource of hazardous or critical concern; there would not be a cumulative impact from successive projects of the same type in the same place; there is no evidence that there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances; the project is not

Reso No. ______ (CM)
Meeting Date: 011326 2
located near a scenic highway or on a hazardous waste site or on a historical resource.

Approval of a public and on-site Improvement Agreement does not create any new or more significant impacts that have not previously been analyzed.

2. That the Public and On-Site Improvement Agreement between the City of Watsonville and Habitat for Humanity Monterey Bay, a California Nonprofit Public Benefit Corporation, for the Evan Circle Subdivision, Tract No. 1518, located at 36 Airport Road (APNS: 018-391-19 & 20), Watsonville, California, and the Fee Sheet, copies of which are attached hereto and incorporated herein by this reference, are fair and equitable subject to the conditions herein. Except as provided herein, the Agreement and Fee Sheet are hereby ratified and approved.

3. The City Attorney is directed to review the Agreement and Fee Sheet to verify the Agreement is properly executed and dated by an authorized Habitat for Humanity Monterey Bay, a California Nonprofit Public Benefit Corporation representative before releasing the Agreement and Fee Sheet to the City Manager for execution.

4. Upon approval by the City Attorney, the City Manager is hereby authorized and directed to execute the Agreement and Fee Sheet for and on behalf of the City of Watsonville.
************************************

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CITY OF WATSONVILLE
IMPROVEMENT AGREEMENT FOR TRACT NUMBER 1518,

EVAN CIRCLE PHASE III IMPROVEMENTS

WITH DEVELOPER
THIS IMPROVEMENT AGREEMENT (“Agreement”), is made and entered as of , 2025, by and between the CITY OF WATSONVILLE, a municipal corporation, herein called "City,” and Habitat for Humanity Monterey Bay, A California Nonprofit Public Benefit Corporation herein called "Developer.”

RECITALS
WHEREAS, Developer has filed with the City certain improvement plans for Evan Circle, Tract 1518, Phase III, hereinafter called "Project,” designated as the Evan Circle, Tract No. 1518, Phase III Improvement Plans for (36 Airport Rd, Watsonville, CA 95076), APNs 015-391-19 & 20, prepared by Bowman & Williams, Consulting Civil Engineers and Land Surveyors, with a date last revised of October 30, 2025;
WHEREAS, on October 22, 2024, the City Council of the City of Watsonville approved the development of Tract 1518 located in the City of Watsonville, consisting of the construction of 13 dwelling units on individual parcels on an approximately 1.15-acre site located at 36 Airport Rd, Watsonville, CA 95076, APNs 015-391-19 & 20;
WHEREAS, on October 22, 2024, the City Council of the City of Watsonville adopted Resolution No. 225-24 (CM) approving a Tentative Map for Tract No. 1518, Resolution No. 225- 24 (CM) approving a Major Subdivision, and Tentative Map for Evan Circle, Tract 1518, Phase III (PP2023-6034) for a 13-unit subdivision located at 36 Airport Road (APNs: 015-391-20 &19) and finding the project Categorically Exempt under the California Environmental Quality Act (CEQA) pursuant to CEQA guidelines Section 15332 (in-fill exemption) and Resolution NO. 224- 24 (CM) approving a density bonus (PP2023-6034) for a 13-unit subdivision at 36 Airport Rd (APNs: 015-391-19 & 20) and finding the project Categorically Exempt under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15332 (In-Fill Exemption), (together, “Project Approvals”), to allow for the construction of Project subject to Developer complying with certain conditions set forth therein; WHEREAS, the work and improvements required as conditions for approval of the Project, including street improvements, utilities, site landscaping improvements, including common use areas and other site features (altogether hereinafter called the “Evan Circle, Tract 1518, Phase III Improvements”) must be built or completed in accordance with the Evan Circle, Tract 1518, Phase III Improvement Plans on file with, and approved by the City Engineer; WHEREAS, the approval of the Evan Circle, Tract 1518, Phase III Improvement Plans and the Project final map are conditioned upon the execution by Developer of this Agreement; and WHEREAS, Developer hereby proposes to enter into this Agreement with City, by the terms of which Agreement Developer agrees to have the Evan Circle, Tract 1518, Phase III Improvements described above completed not less than twelve (12) months and not more than thirty-six (36) months from the date of recording of a final map, unless an extension is granted by the City Engineer.

NOW, THEREFORE, in consideration of the premises and the mutual promises and covenants

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of the parties hereto, it is agreed as follows:

1. PERFORMANCE OF WORK: PLANS AND SPECIFICATIONS. Developer shall construct, install and furnish at Developer's expense, in a good and workmanlike manner, all Evan Circle, Tract 1518, Phase III Improvements according to City improvement standards, to fulfill all requirements of Title 13 of the Watsonville Municipal Code, and all requirements of the soils engineer. All such improvements must be completed not less than twelve (12) months and not more than thirty-six (36) months from the date of recording of a final map. Developer shall do all work and furnish all materials necessary to complete the Evan Circle, Tract 1518, Phase III Improvement Plans and specifications on file as required by City improvements standards and with any changes required or ordered by the City which are necessary or required to complete the work. All work and improvements shall be completed under the direction of and subject to the satisfaction of the City Engineer.

2. TIMING. Developer shall do all necessary work and construct the Evan Circle, Tract 1518, Phase III Improvements, and complete such work and improvements in accordance with the provisions of the conditions of the Project Approvals and this Agreement. All Evan Circle, Tract 1518, Phase III Improvements shall be completed to the City’s satisfaction prior to the issuance of any certificate of occupancy.

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

4. PAYMENT OF DEVELOPMENT FEES AND CHARGES. Development Fees and Charges as listed in Attachment A, attached hereto and incorporated herein by this reference, shall be paid by Developer prior to the issuance of a building permit.

5. FAITHFUL PERFORMANCE AND LABOR AND MATERIALS SECURITIES. The securities described in this Section have been calculated based on the estimated Improvement Costs described in the Engineer’s Estimate attached hereto as Attachment B and incorporated herein by this reference.
(A) FAITHFUL PERFORMANCE GUARANTEE. Developer shall submit with this Agreement a Faithful Performance Bond issued by a bonding company with a Standard and Poor’s rating of AAA, in the amount of One Million, Nine Hundred Thiry-Eight Thousand, Nine Hundred Forty-Eight & 8/100 DOLLARS ($ 1,938,948.08) which is 100% of the total estimated cost of the Evan Circle, Tract 1518, Phase III Improvements calculated as follows:

Improvement Cost - $ 1,938,948.08
Bond Amount – 100% $ 1,938,948.08
-AND-
(B) LABOR AND MATERIALS (PAYMENT) GUARANTEE. Developer shall submit with this Agreement a Labor and Materials (Payment) Bond issued by a bonding company with a Standard and Poor’s rating of AAA, in the amount of One Million, Nine

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Hundred Thiry-Eight Thousand, Nine Hundred Forty-Eight & 8/100 DOLLARS ($ 1,938,948.08), which is 100% of the total estimated cost of the Evan Circle, Tract 1518, Phase III Improvements calculated as follows:

Improvement Cost - $ 1,938,948.08
Bond Amount – 100% $ 1,938,948.08
Performance and labor and materials bonds shall be released upon acceptance of such improvements by City Council.

6. DEFECTIVE MATERIALS AND WORKMANSHIP (WARRANTY) BOND.

Developer shall submit with this Agreement a bond issued by a bonding company with a Standard and Poor’s rating of AAA, in the amount of One Hundred Ninety-Three Thousand, Eight Hundred Ninety-Four & 81/100 DOLLARS ($ 193,894.81) which is ten percent (10%) of the contract amount to secure the improvements for a period of one (1) year following completion and acceptance by the City Council against any defective work or labor done, or materials furnished.

Improvement Cost - $ 1,938,948.08
Fund Amount - 10% $ 193,894.81
NO OTHER IMPROVEMENT SECURITY SHALL BE ACCEPTABLE. The security shall provide that within a period of one (1) year after final acceptance of the work performed under this Agreement any structure or part of any structure furnished and/or installed or constructed, or caused to be installed or constructed by Developer, or any of the work done under this Agreement fails to fulfill any of the requirements of the specifications referred to herein, Developer shall without delay and without any cost to City, repair or replace or reconstruct any defective or otherwise unsatisfactory part or parts of the work or structure. The city is hereby authorized to make such repairs if within ten (10) days after the mailing of notice in writing to Developer or its agent, Developer shall neglect to make or undertake with due diligence the aforesaid repairs, replacements or reconstruction; provided, however, that in case of an emergency where in the opinion of the City delay would cause serious loss or damage, repairs may be made without notice being sent to Developer and Developer shall pay the costs thereof.

7. MONUMENT DEPOSIT. Developer shall submit with this Agreement a bond issued by a bonding company with a Standard and Poor’s rating of AAA to guarantee completion of subdivision survey and monumentation of the lot and boundaries in the amount of Thirteen Thousand, Five Hundred & 00/100 DOLLARS ($ 13,500.00) which is ONE HUNDRED PERCENT (100%) of the developers engineering and land surveyor’s estimated contract amount to secure performance, or a letter from Developer’s engineer or land surveyor confirming that the land surveyor has been paid for setting all required monuments for the subdivision and will establish all monumentation as required upon request from the Developer or the City.

Land surveyors estimate: $ 13,500.00
Bond amount: $ 13,500.00
NO OTHER IMPROVEMENT SECURITY SHALL BE ACCEPTABLE. Monuments shall be set in place and be of such kind and quality as may be required by the City Engineer. Refund of all or part of the deposit shall be conditioned upon satisfactory compliance with City requirements which includes receipt by the City of a letter from the Developer’s engineer and or land surveyor confirming the monuments have been placed and the engineer or land surveyor has been paid for setting of the monuments.

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8. CLEAN UP DEPOSIT (FUND TO CLEAR PUBLIC STREETS). Developer shall submit with this Agreement a deposit in the amount of Nineteen Thousand, Three Hundred EightyNine & 48/100 DOLLARS ($ 19,389.48) to the City, which is one percent (1%) of the contract amount to secure clean- up work. No other form of security will be accepted for this deposit.

Improvement Cost - $ 1,938,948.08
Deposit amount - 1% $ 19,389.48
NO OTHER IMPROVEMENT SECURITY SHALL BE ACCEPTABLE. The security shall provide that it shall be the duty of the Developer, or its contractors and agents, to maintain all public streets in and about the Project free and clear of all debris, dirt, mud or other construction material during the course of construction. The existence of any such debris, dirt, mud or other construction material is hereby declared and acknowledged to be a public nuisance. The city is hereby authorized to use such cash sums if within three (3) days after the mailing of notice in writing to Developer or its contractors or agents, the Developer or its contractors or agents fail to clear or remove such debris, dirt or other construction material from the public streets as directed by the City Engineer; provided, however, that in case of an emergency where, in the opinion of City, delay may cause serious injury to the public interest, City may clear and remove such material without notice to Developer, utilizing the funds described herein. The remaining deposit as herein provided shall be refunded to Developer upon acceptance of the improvements by the City Council.

9. HOLD HARMLESS. Developer shall defend, indemnify and hold City, its elective and appointive boards, commissions, officers, agents and employees, harmless from any liability or damage or claims for damage for personal injury, including death, as well as from claims for property damage which may arise from Developer or Developer's contractors, subcontractors, agents or employees' operations under this Agreement, whether such operations are by Developer of by any of Developer's contractors, or by any one or more persons directly or indirectly employed by or acting as agent for Developer or any of Developer's contractors or subcontractors. Developer shall defend City and its elective and appointive boards, commissions, officers, agents and employees from any suits or actions at law or in equity for damages caused, or alleged to have been caused, by reason of any of the aforesaid operations; provided as follows:

That City does not and shall not waive any rights against Developer which it may have by reason of the hold harmless agreement, because of the acceptance by City or the deposit with City by Developer, or any of the insurance policies described herein. (A) That the hold harmless agreement by Developer shall apply to all damages of every kind suffered, or alleged to have been suffered, by reason of any of the aforesaid operations referred to in Number 9 of this Agreement, regardless of whether or not the City has prepared, supplied or approved plans and/or specifications for the project, or regardless of whether or not such insurance policies shall have been determined to be applicable to any such damages or claims for damage.

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

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will be accepted.

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

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

Said policy shall contain a standard form of cross liability endorsement policy, that insures the City, its elective and appointive boards, commissions, officers, agents and employees, Developer, and any contractor or subcontractor performing work covered by this Agreement.
(A.2.) AUTOMOBILE LIABILITY INSURANCE. For all vehicles used in the performance of this Agreement, Developer and any contractor shall provide bodily injury liability limits of not less than Five Hundred Thousand and no/100 Dollars ($500,000.00) for each person and Five Hundred Thousand and no/100 Dollars ($500,000.00) for each accident or occurrence, and property damage liability limits of not less than Five Hundred Thousand and no/100 Dollars ($500,000.00) for each accident or occurrence which may arise from the operations of the Developer in performing the work provided for herein, OR combined single limits of Five Hundred Thousand and no/100 Dollars ($500,000.00) therefore. Said policy shall contain a standard form of cross liability endorsement policy, that insures the City, its elective and appointive boards, commissions, officers, agents and employees, Developer, and any contractor or subcontractor performing work covered by this Agreement.

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(B) WORKER'S COMPENSATION INSURANCE. Developer and any contractor shall maintain Worker's Compensation Insurance during the life of this Agreement, with an insurance company licensed to provide such insurance in California for all employees employed by either at the site of improvement, and in case any work is sublet, they shall require any contractor or subcontractor similarly to provide Worker's Compensation Insurance for all contractors' or subcontractors' employees. In case any class of employees engaged in work under this Agreement at the site of the project is not protected under any Worker's Compensation Law, Developer and any contractor shall provide and shall cause each subcontractor to provide adequate insurance for the protection of employees not otherwise protected. Developer and any contractor hereby indemnify City for any damages resulting to it from failure of either Developer or any contractor or subcontractor to take out or maintain such insurance.

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

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

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

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

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

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

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

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

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

Prior to final acceptance of the project by the City, the applicant shall provide the City with a copy of the marked plans for review. After the City has approved the marked plans, the applicant shall submit a reproducible copy to the City. The plans shall be on vellum or mylar and each sheet

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shall be identified by an “as-built” or “record drawing” stamp.

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

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

17. INCORPORATION OF USE PERMIT AND TENTATIVE MAP PERMIT CONDITIONS. Pursuant to the provisions of Resolution No. 225-24 (CM) approving a Major Subdivision, and Tentative Map, and Resolution NO. 224-24 (CM) approving a density bonus, the Developer affirms that the conditions and restrictions set forth in said resolutions shall be applicable to this Agreement and by such reference the conditions and restrictions are incorporated herein, and shall be placed on the plans submitted for all building permit applications.

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

19. PERMITS; COMPLIANCE WITH LAW. Developer shall, at Developer's expense, obtain all necessary permits and licenses for the construction of such improvements, give all necessary notices, and pay all fees and taxes required by law.

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(A) After City Council approval of this Improvement Agreement and prior to starting construction, Developer’s contractor shall obtain an On/Offsite Permit for the proposed improvements. Contractor shall provide an insurance certificate meeting the requirements of the insurance coverages described in this Agreement.

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

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

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

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

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

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

26. BINDING ON SUCCESSORS AND ASSIGNS. This Agreement shall run with the land

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and be binding upon the successors and assignees of each of the parties. Developer shall inform potential buyers of the obligations on successors and assignees created by this paragraph.

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

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

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

Habitat for Humanity Monterey Bay
555 Main Street
Watsonville, CA 95076

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

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

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

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

32. FINAL EXPRESSION. This Agreement isthe result of negotiations between the parties hereto and the advice and assistance of their respective counsel. This Agreement is intended by the parties hereto as a final expression of their understanding with respect to the subject matter

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hereof and as a complete and exclusive statement of the terms and conditions thereof and supersedes any and all prior and contemporaneous agreements and understandings, oral or written, in connection therewith. This Agreement may be amended or modified only upon the written consent of the parties hereto.

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

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

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

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

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IN WITNESS WHEREOF, the parties have hereto executed this Public Improvement Agreement on the day and year first herein above written:

ATTEST: CITY OF WATSONVILLE
A California Nonprofit Public Benefit Corporation
City Clerk City Manager
APPROVED AS TO FORM: DEVELOPER
City Attorney
Habitat for Humanity Monterey Bay
A California Nonprofit Public Benefit
Corporation
By:

Its
:

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City of Watsonville – 275 Main Street, 4
th Floor – Watsonville CA 95076
FEE SHEET – IMPROVEMENT AGREEMENT – ATTACHMENT A
Developer’s name: Habitat for Humanity
Monterey Bay
Address: 555 Main St, Watsonville, CA 95076
Project Location: 36 Airport Rd
Watsonville, CA 95076
Project Name: Evan Circle, Tract 1518,
Phase III

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

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

A. Engineering Services (5203) $ 63,539.00
B. Inspection (5206) $ 22,920.00
C. Permit Fees (5211) $ 852.00
D. Soil Testing $ 0
E. Grading/Erosion Control $ 0
F. Payback Agreements $ 0
Sub Total Fees (A-F) $ 87,311.00
G. Impact Fees* $ 312,460.60
H. Water Fees & charges* $ 56,277.00
Sub Total (Fees G & H*) $ 368,737.60
TOTAL FEES $ 456,048.60
Please make check payable to City of Watsonville.

Property Owner: Habitat for Humanity, Monterey
Bay
Address: 555 Main St, Watsonville, CA 95076
Phone #: (831) 824-4704
APN: 015-391-19 & 20
Type of Project: Major Subdivision
Number of Units: 13-Units

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

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

Prepared by: Murray Fontes
Updated:

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Project Name: Evan Circle, Tract 1518, Phase III
Item Amount Due Item Amount Due
A. Engineering Services
(Plan Check) $ 63,539.00
Improvement plan & CC&R’s
check = $ 48,377.50
Drainage Study review = $ 7,847.50
MWELO review = $ 133.00
Structural review = $ 3,345.00
Addressing fee = $ 382.00
Final Map review fees = $ 2,422.00
Final Map recordation = $ 390.00
Subdivision Agreement
Preparation = $ 642.00
B. Inspection
Inspection fee (5206) = $ 22,920.00
C. Encroachment Permit Fees $ 852.00
D. Soils Testing $ (1)
E. Grading/Erosion Control $ (2)
F. Payback Agreements $ 0
G. Impact Fees* $ 312,460.60
Impervious surface = $ 19,279.00
Storm drain (5365) = $ 9,688.38
Underground in lieu fee (5284)= $ 0
City Wide Traffic Impact Fee (5360) =
$ 43,680.00
Community Centers and Recreation
Facilities Impact Fees = $ 9,057.00
Park Improvement Impact Fee = $ 65,784.00
Park Land Impact Fee = $ 54,165.00
Public Facilities Impact Fee (5362) = $ 6,667.20
Fire Impact Fee (5361) = $ 15,535.00
Watsonville Public Art Program
Allocation Fee = $ 36,514.19
Affordable Housing Impact Fee (5304) =
$ 0
Sewer Connection Fee (5364) = $ 31,484.05
Groundwater Impact Fee (5312) = $ 20,606.78
H. Water Fees & Charges* $ 56,277.00
Water Connection (5313) $ 40,677.00
Meter Fees (5266) $ 15,600.00
$ 56,277.00
Total due $456,048.60
Previously paid $ 0
Balance due $456,048.60
*NOTE: Impact fees for Affordable Housing, Fire,
Groundwater, Recreation and Parks, Traffic and
Public Facilities shall be payable with building
permits. Sewer and water connection and water
construction fees shall be payable with building
permits.
(1) Soil testing paid by applicant per the Engineer
Special Inspection and Testing Agreement.
(2) Included with Engineering Services.

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Attachment B - Engineer’s Estimate

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BOWMAN AND WILLIAMS FILE No. 27763
CLIENT: HABITAT FOR HUMANITY OF MONTEREY BAY
DATE: 11/10/2025

ITEM DESCRIPTION UNIT QUANITY UNIT COST EXTENSION
1 MOBILIZATION LS 1 $ 50,000.00 $ 50,000.00
2 IMPORT OF ENGINEERED FILL CY 365 $ 40.00 $ 14,600.00
3 ROUGH GRADING CY 1925 $ 30.00 $ 57,750.00
4 COLD MILL FOR ASPHALT PAVEMENT OVERLAY TON 48 $ 215.00 $ 10,320.00 5 ASPHALT CONCRETE TON 405 $ 350.00 $ 141,750.00
6 CALTRANS CLASS 2 AGGREGATE BASE CY 455 $ 100.00 $ 45,500.00 7 RECOMPACTED SUBGRADE CY 455 $ 50.00 $ 22,750.00
8 CURB AND GUTTER LF 603 $ 100.00 $ 60,300.00
9 CURB LF 36 $ 55.00 $ 1,980.00
10 SIDEWALK SF 3342 $ 10.00 $ 33,420.00
11 CONCRETE SWALE SF 827 $ 12.00 $ 9,924.00
12 ADA RAMP LS 1 $ 1,000.00 $ 1,000.00
13 TRUNCATED DOMES SF 12 $ 50.00 $ 600.00
14 TRUGRID SY 566 $ 50.00 $ 28,300.00
15 RETAINING WALL (3' PIER & GRADE BEAM) LF 287 $ 317.00 $ 90,979.00 16 5/8" DIAMETER AGGREGATE CY 31 $ 50.00 $ 1,550.00
17 3/4" DIAMETER AGGREGATE CY 236 $ 50.00 $ 11,800.00
18 MIRAFI 140N SY 566 $ 5.00 $ 2,830.00
19 3" SD PIPE LF 549 $ 60.00 $ 32,940.00
20 4" PERFORATED SD PIPE LF 231 $ 100.00 $ 23,100.00
21 4" SD PIPE LF 135 $ 100.00 $ 13,500.00
22 6" SD PIPE LF 403 $ 160.00 $ 64,480.00
23 12" SD PIPE LF 310 $ 260.00 $ 80,600.00
24 15" SD PIPE LF 215 $ 300.00 $ 64,500.00
25 24" SD PIPE LF 274 $ 420.00 $ 115,080.00
26 TYPE GO EA 4 $ 7,500.00 $ 30,000.00
27 SDMH EA 6 $ 10,000.00 $ 60,000.00
28 SDCO EA 22 $ 500.00 $ 11,000.00
29 MODIFY EX CB EA 1 $ 2,000.00 $ 2,000.00
30 U21 EA 2 $ 4,500.00 $ 9,000.00
31 OUTLET CONTROL STRUCTURES EA 8 $ 1,500.00 $ 12,000.00 32 OUTLET CONTROL STRUCTURE (LARGE) EA 1 $ 5,000.00 $ 5,000.00 33 CATCH BASINS EA 10 $ 1,500.00 $ 15,000.00
34 BUBBLER EA 21 $ 1,200.00 $ 25,200.00
35 PERKFILTER EA 2 $ 11,000.00 $ 22,000.00

ENGINEER'S ESTIMATE OF CONSTRUCTION COST

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BOWMAN AND WILLIAMS FILE No. 27763
CLIENT: HABITAT FOR HUMANITY OF MONTEREY BAY
DATE: 11/10/2025

ITEM DESCRIPTION UNIT QUANITY UNIT COST EXTENSION

ENGINEER'S ESTIMATE OF CONSTRUCTION COST
36 JOINT TRENCH LF 436 $ 543.53 $ 236,979.08
37 8" SANITARY MAIN LF 227 $ 215.00 $ 48,805.00
38 4" SANITARY LATERAL LF 460 $ 100.00 $ 46,000.00
39 SSMH EA 2 $ 5,000.00 $ 10,000.00
40 SSCO EA 14 $ 500.00 $ 7,000.00
41 OFF-HAUL DEMO EX PAVEMENT CY 297 $ 100.00 $ 29,700.00 42 RELOCATE UTILITY POLE EA 1 $ 10,000.00 $ 10,000.00
43 ELECTROLIERS (INCL. IN ITEM 35.) EA 0 $ 10,173.33 $ - 44 1" COMBINATION METERS
CONNECTION FEE EA 13 $ 3,090.00 $ 40,170.00
METER DROP-IN EA 13 $ 1,185.00 $ 15,405.00
45 GROUND WATER IMPACT FEE PER BEDROOM EA 37 $ 550.00 $ 20,350.00 46 6" WATER MAIN LF 115 $ 200.00 $ 23,000.00
47 WATER VALVE LF 2 $ 500.00 $ 1,000.00
48 FIRE HYDRANT LF 2 $ 5,000.00 $ 10,000.00
49 WATER METER BOXES EA 13 $ 500.00 $ 6,500.00
50 WATER SERVICE LATERALS LF 346 $ 30.00 $ 10,380.00
$ 1,686,042.08
$ 252,906.00
$ 1,938,948.08
NOTE: ITEM 35. ESTIMATE PROVIDED BY GIACALONE DESIGN SERVICES. LF COST INCLUDES JOINT TRENCH, P.G.& E. TRANSFORMERS AND SPLICE BOX, ELECTROLIERS, AND P.G.& E. FEES AND ENGINEERING.

SUB-TOTAL
CONTINGENCY 15%
TOTAL
WATER SERVICES FEES 2024-2025 CITY OF WATSONVILLE

WATER SYSTEM

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Reso No. ______ (CM)
Meeting Date: 011326 SWZ ______ TV ______ PWU ______ 1
RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING THE FINAL SUBDIVISION MAP FOR
EVAN CIRCLE SUBDIVISION, TRACT NO. 1518, LOCATED AT 36
AIRPORT ROAD, WATSONVILLE, CALIFORNIA (APN: 018-391-19 & 20) WHEREAS, on September 26, 2006, Council adopted Resolution No. 225-06 (CM), adopting a negative declaration with mitigation measures (PP2006-141), to allow for the construction of 19 single family units with a mini park on three parcels totaling 2.62 acres at 36, 42, and 54 Airport Road (APNs 015-391-20, -21, & -23); and WHEREAS, on September 26, 2006, Council adopted Resolution No.226-06 (CM), approving a Special Conditional Use Permit with Design Review (PP2006-141), to allow for the construction of 19 single family units with a mini park on three parcels totaling

2.62 acres at 36, 42, and 54 Airport Road (APNs 015-391-20, -21, & -23); and WHEREAS, on September 26, 2006, Council adopted Resolution No.227-06 (CM), approving a tentative subdivision map, Tract No. 1518 (PP2006-141), to allow for the construction of 19 single family units with a mini park on three parcels totaling 2.62 acres at 36, 42, and 54 Airport Road (APNs 015-391-20, -21, & -23); and WHEREAS, on February 12, 2008, Council adopted Resolution No. 24-08 (CM), to allow for a modification and one year time extension (PP2007-371) to Tentative Tract Map No. 1518 and three phase construction of 19 single family units cluster lot subdivision with a mini park on three parcels totaling 2.62 acres at 36, 42, and 54 Airport Road (APNs 015-391-20, -21, & -23); and
WHEREAS, on November 13, 2018, Council adopted Resolution No. 4-18 (SHA), in its capacity as the successor to the housing assets and functions to the former redevelopment agency of the City of Watsonville: 1) approving disposition and

Reso No. ______ (CM)
Meeting Date: 011326
2 development agreement (36 Airport Road) between the successor housing agency to the former redevelopment agency of the City of Watsonville and Habitat for Humanity Monterey Bay, a corporation, for the sale and development of 36 Airport Road (APN: 015- 391-20) as an affordable, self-help, single-family, home ownership development; 2) making certain findings pursuant to Health and Safety Code section 33433 in connection therewith; and 3) authorizing and directing the City Manager to execute all documents with clarifying and/or non-substantive modifications, necessary to implement agreement; and
WHEREAS, on August 30, 2023, an application for an Administrative Use Permit, Density Bonus, Major Subdivision, and Tentative Map for construction of a thirteen-unit subdivision with thirteen new one- and two-story single-family residences on two vacant parcels (APN: 015-391-19 &20) totaling 50,229 square feet located at 36 Airport Road, Watsonville, California, was filed by Bill Kempf, architect and applicant on behalf of Habitat for Humanity, property owner; and
WHEREAS, on October 22, 2024, Council adopted Resolution No. 225-24 (CM) approving a major subdivision, and tentative map for Evan Circle, Tract 1518, for a 13- unit subdivision located at 36 Airport Road; and
WHEREAS, on October 22, 2024, Council adopted Resolution No. 224-24 (CM) approving a density bonus for a 13-unitsubdivision located at 36 Airport Road and finding the project Categorically Exempt under the California Environmental Quality Act (CEQA); and
WHEREAS, the developer, Habitat for Humanity, a California Nonprofit Public Benefit Corporation, has requested approval of a Final Map for the Evan Circle

Reso No. ______ (CM)
Meeting Date: 011326
3 Subdivision, Tract No. 1518, located at 36 Airport Road, Watsonville, California (APN:
018-391-19 & 20); and
WHEREAS, the developer has provided improvement plans for the Evan Circle Subdivision, Tract No. 1518, that have been reviewed by City staff and found to be substantially in compliance with the Tentative Map, public and on-site improvements and satisfy the conditions of the Tentative Map; and
WHEREAS, no public and on-site public improvements shall be accepted by the City until inspected and approved by City staff; and
WHEREAS, the Final Subdivision Map for Evan Circle Subdivision, Tract No. 1518, located at 36 Airport Road shall not be released until and unless the Subdivision Improvement Agreement and attached fee sheet approved concurrently are executed by developer in a form reasonably acceptable to the City Attorney and City Manager.

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

1. On October 22, 2024, the City Council adopted Resolution No. 224-24 (CM) finding that the project, a 13 unit subdivision located at 36 Airport Road, is categorically exempt from review under the California Environmental Quality Act (CEQA) pursuant to California Code of Regulations Title 14 Section 15332 (In-Fill Exemption). The project meets the conditions of Section 15332, including: the project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations; the project occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses; the project site has no value as habitat for endangered, rare, or threatened species; approval of the project would not result in any significant effects relating to traffic, noise, air quality,

Reso No. ______ (CM)
Meeting Date: 011326
4 or water quality; and the site can be adequately served by all required utilities and public services. Additionally, none of the exceptions in section 15300.2 apply: the project is not located on an environmental resource of hazardous or critical concern; there would not be a cumulative impact from successive projects of the same type in the same place; there is no evidence that there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances; the project is not located near a scenic highway or on a hazardous waste site or on a historical resource.

Approval of a Final Subdivision Map does create any new or more significant impacts that have not already been analyzed.

2. That the Final Subdivision Map for Evan Circle Subdivision, Tract No. 1518, located at 36 Airport Road, Watsonville, California (APN: 018-391-19 & 20), is hereby approved, providing developer executes the Subdivision Improvement Agreement concurrently considered by Council, and copies of Pages 1-4 of the Final Subdivision Map are attached hereto and incorporated herein by this reference. *********************************

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MEETING DATE: Tuesday, January 13, 2026
TO: CITY COUNCIL
WRITTEN BY: PROJECT MANAGER HERRERA
RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR LINDBERG APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: RESOLUTION ACCEPTING A $1,068,300 GRANT AWARD FOR THE LEE ROAD TRAIL PHASE 2 PROJECT; AND APPROPRIATE SUCH FUNDS TO THE SPECIAL GRANTS FUND (0260)
RECOMMENDATION:

It is recommended that the City Council adopt a resolution accepting grant funding, in the amount of $1,068,300 from the California State Coastal Conservancy (CSCC) for the Lee Road Trail Phase 2 project; authorizing the City Manager to execute all necessary agreements; and appropriating such funds to the Special Grants Fund (0260).

BACKGROUND:

The Lee Road Trail project is part of the City of Watsonville Trails and Bicycle Master Plan for the Watsonville Scenic Trails Network. The project will be constructed in three phases. Council awarded a construction contract for the Lee Road Trail Phase 1 project at its 12/02/25 meeting and construction is scheduled for next year. Phase 1 is 0.7 miles long. It begins at the Pajaro Valley High School driveway, follows Harkins Slough Rd to Lee Rd, then follows Lee Rd on an easement on California Department of Fish and Wildlife (CDFW) property to the driveway of the Land Trust of Santa Cruz Counties Watsonville Slough Farms property. The Phase 2 Trail segment will be an extension of the Lee Road Trail Phase 1 project and will allow pedestrians and bicyclists to travel on the CDFW easement, over the Struve Slough and south to the existing pedestrian trail at Watsonville Slough. Phase 2 is a 0.5-mile trail, that includes a pedestrian and bicycle bridge over Struve Slough. When constructed, Phase 3 will extend south along Lee Road to connect to the future Monterey Bay Sanctuary Scenic (Rail) Trail and the western city boundary.

2 DISCUSSION:

An earlier grant that the city secured from the CSCC helped fund the preparation of 65% of the construction plans and the issuance of regulatory permits for the entire Lee Road Trail project. The current grant will fund completion of construction plans, mitigation design, extension of regulatory permits, project management and administration costs, community outreach and incorporating artistic elements into the project for Phase 2. There are no matching funds required for this grant.

Funding provided by the CSCC is from Proposition 84: Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006. This grant was approved on September 18, 2025, by the CSCC Board, with letters of support from State Senator Laird, County Supervisor Felipe Herndandez, the Land Trust of Santa Cruz County, and Watsonville Wetlands Watch.

The CSCC is very interested in this project because the slough system in Watsonville is one of the largest remaining freshwater marshlands in the State’s Coastal Zone. Additionally, it provides future access to natural space for residents and visitors. With the hydrological changes in Struve Slough, Lee Road is now submerged and no longer provides a connection between Harkins Slough Rd and West Beach Street.

Lee Road Trail Phase 2 will provide secondary bicycle and pedestrian access to Pajaro Valley High School and Watsonville Slough Farms, which is a 490-acre parcel with a unique combination of agricultural lands and wetland and upland habitat that will house 5 miles of public access trails with programs hosted by the Land Trust.

Once the Grant Agreement is signed, staff can solicit proposals for the design and art aspect of this project.

Design is estimated to take about one and one-half years to complete. During this time, staff will work with partners and stakeholders to seek construction funding.

Proceeds from the grant are to be appropriated to the Special Grants Fund (0260). The deadline to expend these funds is December 31, 2027. There shall be no extensions granted.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

On March 12, 2021, the County adopted a mitigated negative declaration for the Lee Road Trail project.

No changes to the mitigated negative declaration are necessary. It proposes no changes to the project that would require additional environmental analysis, and none of the conditions described in CEQA Guidelines Section 15162 for the preparation of a subsequent EIR have been met.

No substantial changes involving new significant environmental effects or a substantial increase in the severity of previously identified significant effects are proposed, and there has been no change in circumstances. There is no new information about the project that could not have been known at the time of the original project approval that indicates any new significant environmental effects or effects that will be substantially more severe, nor are there new mitigation measures that would substantially reduce one or more significant effects on the environment, or mitigation measures previously found to be

3 infeasible that would, in fact, be feasible and would substantially reduce one or more significant effects of the project. Therefore, nothing further is required under CEQA.

The City hired Harris and Associates to perform the California Environmental Quality Act (CEQA) process under this contract. The CEQA lead Agency is County of Santa Cruz. An Initial Study/Mitigated Negative Declaration was prepared, and the declaration findings were that there is no substantial evidence that the project will have a significant effect on the environment. The expected environmental impacts are documented in the Initial Study and listed in the Mitigation Monitoring and Report Program.

A National Environmental Policy Act (NEPA) document was prepared to ensure compliance with all Federal environmental regulations, per the Grantor’s requirement. Caltrans approved NEPA document on May 8, 2024, and determined that the project is a Categorical Exclusion under 23 CFR 771.117(c); activity (c) (3).

STRATEGIC PLAN:

The project addresses the following Strategic Plan:

Infrastructure & Environment
Public Safety
FINANCIAL IMPACT:

Proceeds from the grant are to be appropriated to the Special Grants Fund (0260). A new project number shall be created in the Capital Improvement Program, titled “Lee Road Trail Phase 2 Design and Permitting”. No matching funds are required for this grant.

ALTERNATIVE ACTION:

No reasonable alternatives are known at this time.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

1. Location Map

2. Agreement between the City and the California State Coastal Conservancy

PHASE 2
LEE RD.

TRAIL
LOCATION MAP- LEE ROAD TRAIL PHASE 2
Attachment 1

STATE OF CALIFORNIA
State Coastal Conservancy

GRANT AGREEMENT
Grant - Rev 11/20
THIS AGREEMENT is entered into this day of , 2025 in the State of California, by and between:
and
.

Pursuant to Chapter 9 of Division 21 of the California Public Resources Code, the State Coastal Conservancy (“the Conservancy”) hereby grants to City of Watsonville (“the grantee”) a sum not to exceed $1,068,300 (one million sixty-eight thousand three hundred dollars) subject to this agreement.

Continued on the following pages.

The provisions on the following pages constitute a part of this agreement.

This agreement has been executed by the parties as shown below.

STATE OF CALIFORNIA GRANTEE
AGENCY GRANTEE (If other than an individual, state whether a corporation, partnership, etc.) State Coastal Conservancy City of Watsonville
BY (Authorized Signature) BY (Authorized Signature)
  PRINTED NAME AND TITLE OF PERSON SIGNING PRINTED NAME AND TITLE OF PERSON SIGNING Amy Hutzel, Executive Officer Tamara Vides, City Manager

ADDRESS & PHONE NUMBER ADDRESS & PHONE NUMBER
1515 Clay Street, 10th Floor
Oakland, CA 94612
Phone: (510) 286-1015
250 Main Street
Watsonville, CA 95076
Phone: (831) 768-3010

AMOUNT ENCUMBERED BY

THIS DOCUMENT
$ 1,068,300.00

PROGRAM/CATEGORY
Local Assistance
FUND TITLE/PROP NO.

Prop 84 – Monterey Bay
I certify that this
agreement is exempt
from Department of
General Services’
approval.

Erika Gomez
Procurement and
Contracts Manager

PRIOR AMOUNT

ENCUMBERED FOR THIS

AGREEMENT

FUND ITEM CHAPTER STATUTE FISCALYEAR
$ -0- 3760-101-605100008(H)(B0682)
Reap. by Chap. 6/20
14/17 2017 17/18

TOTAL AMOUNT

ENCUMBERED TO DATE

PROJECT NAME
$ 1,068,300.00 Lee Road Trail Phase 2 Planning
I hereby certify upon my own personal knowledge that budgeted funds are available for the period and purpose of the expenditure stated above.

NAME AND SIGNATURE OF ACCOUNTING OFFICER DATE
AGREEMENT NUMBER AM. NO.

G25-010

TAXPAYERS FEDERAL EMPLOYER
IDENTIFICATION NO.
94-6000451
AGENCY
State Coastal Conservancy

GRANTEE'S NAME
City of Watsonville
Attachment 2

City of Watsonville
Grant Agreement No. G24-010

I. SCOPE OF AGREEMENT
The grantee shall use the funds granted under this agreement to complete the following project (“the project”) for the Lee Road Trail area of the City of Watsonville, as shown on the attached Exhibit A.

The project consists of preparing final designs and permit applications for the second phase of the Lee Road Trail Project. The second phase is an approximately 0.5-mile segment of the Lee Road Trail that includes a pedestrian and bicycle bridge over Struve Slough. The project also includes completion of schematic and final designs for the mitigation necessary to offset the environmental impacts of the Lee Road Trail Project.

The project includes conducting a community engagement process to envision and design artistic features on the side of and surrounding the Struve Slough bridge The grantee shall carry out the project in accordance with this agreement. The grantee shall provide any funds beyond those granted under this agreement that are needed to complete the project.

II. CONDITIONS PRECEDENT TO COMMENCEMENT OF PROJECT AND

DISBURSEMENT
The grantee shall not commence the project and the Conservancy will not be obligated to disburse any funds under this agreement until the following conditions precedent have been met:

1. The City Council of the grantee has adopted a resolution designating positions whose incumbents are authorized to negotiate and execute this agreement and amendments to it on behalf of the grantee.

2. The Executive Officer of the Conservancy (“Executive Officer”) has approved in writing:
a. The work program for the project as provided in section V. WORK PROGRAM. b. All contractors that the grantee intends to retain in connection with the project.

3. The grantee has provided to the Conservancy:
a. Evidence that the grantee has provided for required insurance coverage as described in section XIII. INSURANCE.
b. A complete project budget that identifies the estimated costs to complete the project and all sources of funding for the project.

Attachment 2

City of Watsonville
Grant Agreement No. G24-010

III.TERM OF AGREEMENT
This agreement will take effect when signed by both parties and received in the office of the Conservancy together with the resolution described in section II. CONDITIONS PRECEDENT TO COMMENCEMENT OF PROJECT AND DISBURSEMENT. This agreement may be signed electronically using a process specified by the Conservancy.

The grantee shall complete all work by December 31, 2027 (“the completion date”).

The grantee shall deliver a final Request for Disbursement to the Conservancy no later than January 31, 2028.

This agreement terminates on March 31, 2028 (“the termination date”).

IV.AUTHORIZATION
The signature of the Executive Officer of the Conservancy on this agreement certifies that at its September 18, 2025 meeting, the Conservancy adopted the resolution included in the staff recommendation attached as Exhibit B. This agreement is executed under that authorization.

Attachment 2

City of Watsonville
Grant Agreement No. G24-010

Standard Provisions
V. WORK PROGRAM
Before beginning the project, the grantee shall submit a detailed work program to the Executive Officer for review and written approval of its consistency with this grant agreement. The work program must include:

1. The specific tasks to be performed.

2. A schedule of completion for the project, specifically listing the date for completing each project component and showing that the project will be completed by the completion date.

3. A budget that identifies how the grantee will use the funds granted under this agreement, including the labor, materials, contractor and indirect costs to be paid for with the funds granted under this agreement (“work program budget”).

If all or any part of the project to be funded under this agreement will be performed by third parties (“contractors”) under contract with the grantee, the grantee shall submit to the Executive Officer for review and approval the names and qualifications of the contractors.

The work program will have the same effect as if included in the text of this agreement.

However, the work program may be modified without amendment of this agreement upon the grantee’s submission of a modified work program and the Executive Officer’s written approval of it. If this agreement and the work program are inconsistent, this agreement will control.

The grantee shall carry out the project in accordance with the approved work program.

VI.COORDINATION AND MEETINGS
The grantee shall coordinate closely with Conservancy staff and other involved entities, including local, state and federal agencies, and shall participate in meetings and other communications as necessary to ensure coordination.

VII. WORK PRODUCTS AND ACKNOWLEDGMENT OF CONSERVANCY

SUPPORT
All material, data, information, and written, graphic or other work produced, developed or acquired under this agreement is subject to the unqualified and unconditional right of the Conservancy to use, reproduce, publish, display, and make derivative use of all such work, or any part of it, free of charge and in any manner and for any purpose; and to authorize others to do so. If any of the work is subject to copyright, trademark, service mark, or patent, the Conservancy is granted and shall have a perpetual, royalty-free, nonexclusive and irrevocable Attachment 2

City of Watsonville
Grant Agreement No. G24-010

license to use, reproduce, publish, use in the creation of derivative works, and display and perform the work, or any part of it, and to grant to any third party a comparable and coextensive sublicense.

The grantee shall include in any contract with a third party for work under this agreement terms that preserve the rights, interests, and obligations created by this section, and that identify the Conservancy as a third-party beneficiary of those provisions.

The grantee shall not utilize the work produced under this agreement for any profit-making venture, nor sell or grant rights to a third party for that purpose.

In order to acknowledge the Conservancy’s support of the project, the grantee shall display the Conservancy’s name and logo in the final report in a prominent location. The grantee shall mention the Conservancy’s support in its project-related press releases, contacts with the media, and social media postings, and on its website.

VIII.COSTS AND DISBURSEMENTS
When the Conservancy determines that all conditions in section II. CONDITIONS PRECEDENT TO COMMENCEMENT OF PROJECT AND DISBURSEMENT have been fully met, the Conservancy shall disburse to the grantee a total amount not to exceed the amount granted under this agreement, in accordance with work program and this section.

A. Timing of Disbursement
The Conservancy will disburse funds after the grantee has incurred costs and expenses, upon the grantee’s satisfactory progress under the approved work program and upon grantee’s submission of a “Request for Disbursement” form. The Conservancy will not disburse the final five percent or $100,000 of the funds granted under this agreement, whichever is lower, until the grantee has complied with section X. PROJECT COMPLETION and the Conservancy has accepted the project.

B. Payable Costs and Expenses
The Conservancy will only disburse funds for these costs and expenses incurred to carry out the project:

1. Grantee’s staff time, provided that hourly rates for grantee’s staff time billed to the Conservancy may not exceed the actual compensation paid by grantee to employees, which may include employee benefits. The grantee shall require its employees to keep records of their time spent on the project for purposes of documenting the employee time billed to the Conservancy.

Attachment 2

City of Watsonville
Grant Agreement No. G24-010

2. Grantee’s travel and related expenses in accordance with the rates set forth in “SCC Travel Reimbursement Rates for Grants and Contracts,” as posted on the Conservancy’s website at scc.ca.gov.

3. Costs charged to the grantee by its contractors.

4. Other necessary direct costs that are reasonable in nature and amount, taking into account the nature of the project, its location, and other relevant factors.

5. Grantee’s indirect costs as identified in the work program budget.

Notwithstanding any other provision, after the grantee has satisfied the conditions precedent to commencement of the project set forth in Section II. CONDITIONS PRECEDENT TO COMMENCEMENT OF PROJECT AND DISBURSEMENT, the grantee may request reimbursement, and the Conservancy may reimburse grantee, for grantee’s costs to satisfy the conditions precedent.

C. Requesting Disbursement
The grantee shall request disbursements by filing with the Conservancy a fully executed “Request for Disbursement” form (available from the Conservancy). The grantee shall include in the form its name and address, the number of this agreement, the date of the submission, the amount of the invoice, the period during which the work was actually done, and an itemized description, including time, materials, and expenses incurred, of all work done for which disbursement is requested. The form must be limited to work done, including work by contractors, in one Conservancy fiscal year, which is July 1 through June 30 of the following year. Work that spans two Conservancy fiscal years must be separated into two Requests for Disbursement, one for each fiscal year. The form must also indicate cumulative expenditures to date, expenditures during the reporting period, and the unexpended balance of funds under the grant agreement.

An authorized representative of the grantee must sign the form. Each form must be accompanied by:

1. All receipts and any other source documents for direct expenditures and costs that the grantee has incurred.

2. Invoices from contractors (showing work done in only one Conservancy fiscal year) and any receipts and any other source documents for costs incurred and expenditures by any such contractor, unless the Executive Officer makes a specific exemption in writing.

3. A progress report summarizing the current status of the project and the work for which the grantee is requesting disbursement.

Attachment 2

City of Watsonville
Grant Agreement No. G24-010

The grantee shall submit requests for disbursement no more frequently than monthly and no less frequently than quarterly. The grantee’s failure to fully execute and submit one or more Requests for Disbursement with all supporting documents in accordance with this section, will relieve the Conservancy of its obligation to disburse funds to the grantee until the grantee corrects all deficiencies.

IX.EXPENDITURE OF FUNDS AND ALLOCATION OF FUNDING AMONG BUDGET ITEMS
No increase in the total amount of funds granted under this agreement will be valid unless set forth in a written amendment to this agreement. The grantee shall expend funds granted under this agreement consistent with the work program budget. Expenditure on items contained in the work program budget, other than indirect costs, may vary by as much as ten percent per item without prior approval of the Executive Officer. Any deviation that is greater than ten percent for a budget item or that affects indirect costs, requires written approval of the Executive Officer and a revised work program budget. The Conservancy may withhold payment for items that have not received the required approval. Any increase in the funding for a budget item will mean a decrease in the funding for one or more other budget items unless there is a written amendment to this agreement.

X. PROJECT COMPLETION
The grantee shall complete the project by the completion date provided in section III. TERM OF AGREEMENT. Upon completion of the project, the grantee shall supply the Conservancy with evidence of completion by submitting the following by the final Request for Disbursement date set forth in section III. TERM OF AGREEMENT:

1. The plan and any other work products specified in the work program for the project, each in a format or formats (for example, paper, digital, photographic) approved by the Executive Officer.

2. A fully executed final “Request for Disbursement.” A “final Request for Disbursement” means a Request for Disbursement that includes the withheld amounts and all remaining amounts for which grantee is entitled to seek payment, if any, pursuant to this agreement.

The Conservancy shall determine whether the grantee has satisfactorily completed the project. If so, the Conservancy shall issue to the grantee a letter of acceptance of the project. The project will be deemed complete as of the date of the letter.

Attachment 2

City of Watsonville
Grant Agreement No. G24-010

XI.EARLY TERMINATION, SUSPENSION AND FAILURE TO PERFORM Before the project has commenced, either party may terminate this agreement for any reason by giving the other party seven days’ prior written notice.

Before the project is complete, the Conservancy may terminate this agreement for any reason by giving the grantee thirty days’ prior written notice. Before the project is complete, the Conservancy may suspend this agreement for any reason by giving the grantee seven days’ prior written notice. In either case, the grantee shall immediately stop work under the agreement and take all reasonable measures to prevent further costs to the Conservancy. The Conservancy shall be responsible for any reasonable and non-cancelable obligations incurred by the grantee in the performance of this agreement prior to the date of the notice to terminate or suspend, but only up to the undisbursed balance of funding authorized in this agreement. Any notice suspending work under this agreement will remain in effect until further written notice from the Conservancy authorizes work to resume.

If the grantee fails to complete the project as required, or fails to fulfill any other obligations of this agreement prior to the termination date, the grantee will be liable for immediate repayment to the Conservancy of all amounts disbursed by the Conservancy under this agreement. The Conservancy may, at its sole discretion, consider extenuating circumstances and not require repayment for work partially completed. This paragraph does not limit any other remedies the Conservancy may have for breach of this agreement.

Before the project is complete, the grantee may terminate this agreement for any reason by giving the Conservancy with seven days’ prior written notice and repaying to the Conservancy all amounts disbursed by the Conservancy under this agreement. The Conservancy may, at its sole discretion, consider extenuating circumstances and allow early termination without repayment for work partially completed.

On or before the date of termination of the agreement under this section, whether terminated by the grantee or the Conservancy, the grantee shall provide the Conservancy with all work, material, data, information, and written, graphic or other work produced, developed or acquired under this agreement (whether completed or partial), in appropriate, readily useable form.

The parties expressly agree to waive, release and relinquish the recovery of any consequential damages that may arise out of the termination or suspension of this agreement under this section.

The grantee shall include in any agreement with any contractor retained for work under this agreement a provision that entitles the grantee to suspend or terminate the agreement with the contractor for any reason on written notice and on the same terms and conditions specified in this section.

Attachment 2

City of Watsonville
Grant Agreement No. G24-010

XII. INDEMNIFICATION AND HOLD HARMLESS
The grantee shall be responsible for, indemnify and hold harmless the Conservancy, its officers, agents and employees from any and all liabilities, claims, demands, damages, or costs, including without limitation litigation costs and attorneys fees, resulting from or arising out of the willful or negligent acts or omissions of the grantee, its officers, agents, contractors, subcontractors and employees, or in any way connected with or incident to this agreement, except for the active negligence of the Conservancy, its officers, agents or employees. The duty of the grantee to indemnify and hold harmless includes the duty to defend as provided in Civil Code Section 2778.

This agreement supersedes any right the grantee may have as a public entity to indemnity and contribution as provided in Gov. Code Sections 895 et seq.

The grantee waives any and all rights to any type of express or implied indemnity or right of contribution from the State, its officers, agents or employees, for any liability resulting from, growing out of, or in any way connected with or incident to this agreement.

Nothing in this agreement is intended to create in the public or in any member of it rights as a third-party beneficiary under this agreement.

XIII.INSURANCE
Throughout the term of this agreement, the grantee shall procure and maintain insurance, as specified in this section, against claims for injuries to persons or damage to property that may arise from or in connection with any activities by the grantee or its agents, representatives, employees, volunteers, or contractors associated with the project undertaken pursuant to this agreement.

As an alternative, with the written approval of the Executive Officer, the grantee may satisfy the coverage required by this section in whole or in part through: (a) its contractors’ procurement and maintenance of insurance for work under this agreement, if the coverage otherwise fully satisfies the requirements of this section; or (b) the grantee’s participation in a “risk management” plan, self insurance program or insurance pooling arrangement, or any combination of these, if consistent with the coverage required by this section.

1. Minimum Scope of Insurance. Coverage shall be at least as broad as:
a. Insurance Services Office (“ISO”) Commercial General Liability coverage, occurrence basis (Form CG 00 01) or comparable.
b. Automobile Liability coverage - ISO Form Number CA 0001, Code 1 (any auto).

Attachment 2

City of Watsonville
Grant Agreement No. G24-010

c. Workers’ Compensation insurance as required by the Labor Code of the State of California.
d. If the project will utilize watercraft, coverage must be in place through a commercial general liability endorsement or a separate Watercraft/Protection and Indemnity Insurance Policy to cover activities to be performed under this Agreement. Such insurance must cover liability arising out of the maintenance and use of any watercraft covering owned vessels of any size, and non-owned vessels over 26 ft. The certificate of insurance must evidence that all owned vessels and non-owned vessels over 26 ft. are covered.

2. Minimum Limits of Insurance. Grantee shall maintain coverage limits no less than:
a. General Liability:
(Including operations, products
and completed operations, as
applicable)
$1,000,000 per occurrence for bodily injury,
personal injury and property damage.
b. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
c. Worker’s Compensation: Worker’s compensation as required by law. d. Watercraft Liability (for
private vessel) coverage, if
required under 1.d., above
In the following amounts:
a. Vessels under 26 ft.: $1,000,000 combined
single limit.
b. Vessels over 26 ft. or vessel involved in
research: $2,000,000 combined single limit.

3. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the Executive Officer.

4. Waiver of Subrogation. The grantee hereby grants to the State of California, its officers, agents, employees, and volunteers, a waiver of any right to subrogation which any insurer of the grantee may acquire against the State of California, its officers, agents, employees, and volunteers, by virtue of the payment of any loss under such insurance. Grantee agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the grantee has received a waiver of subrogation endorsement from the insurer.

5. Acceptability of Insurers. Insurance must be placed with insurers admitted to transact business in the State of California and having a current Best’s rating of “B+:VII” or better or, in the alternative, acceptable to the Conservancy and approved in writing by the Executive Officer.

Attachment 2

City of Watsonville
Grant Agreement No. G24-010

6. Verification of Coverage. The grantee shall furnish the Conservancy with original certificates and amendatory endorsements, or copies of the applicable policy language, effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the Executive Officer before work commences. The Conservancy reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage, at any time.

7. Contractors. The grantee shall require each contractor to provide and maintain coverage consistent with the requirements of this section. To the extent generally available, grantee shall also require each professional contractor to provide and maintain errors and omissions liability insurance appropriate to the contractor’s profession and in a reasonable amount in light of the nature of the project with a minimum limit of liability of $1,000,000.

8. Premiums and Assessments. The Conservancy is not responsible for premiums and assessments on any insurance policy.

XIV. AUDITS/ACCOUNTING/RECORDS
The grantee shall maintain financial accounts, documents, and records (collectively, “required records”) relating to this agreement, in accordance with the guidelines of “Generally Accepted Accounting Principles” (“GAAP”) published by the American Institute of Certified Public Accountants. The required records include, without limitation, evidence sufficient to reflect properly the amount, receipt, deposit, disbursement of all funds related to work under the agreement, and time and effort reports that permit tracing from the request for disbursement forms to the accounting records and to the supporting documentation.

Additionally, the Conservancy or its agents may review, obtain, and copy all required records.

The grantee shall provide the Conservancy, California State Auditor, Department of Finance, their officers, employees and agents with any relevant information requested and with access to the grantee’s premises upon reasonable notice, during normal business hours, to interview employees and inspect and copy books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this agreement and any applicable laws and regulations.

The grantee shall retain the required records for a minimum of three years following final disbursement by the Conservancy. The records will be subject to examination and audit by the Conservancy and the California State Auditor during the retention period.

If the grantee retains any contractors to accomplish any of the work of this agreement, the grantee shall first enter into an agreement with each contractor requiring the contractor to meet the terms of this section and to make the terms applicable to all subcontractors.

Attachment 2

City of Watsonville
Grant Agreement No. G24-010

The Conservancy may disallow all or part of the cost of any activity or action that it determines to be not in compliance with the requirements of this agreement.

XV. NONDISCRIMINATION
During the performance of this agreement, the grantee and its contractors shall not deny the agreement’s benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. The grantee shall ensure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. The grantee and contractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs., tit. 2, §11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code §§11135-11139.5), and the regulations or standards adopted by the Conservancy to implement such article. The grantee shall permit access by representatives of the Department of Fair Employment and Housing and the Conservancy upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or the Conservancy shall require to ascertain compliance with this clause. The grantee and its contractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. (See Cal. Code Regs., tit. 2, §11105.) The grantee shall include the nondiscrimination and compliance provisions of this clause in all contracts to perform work under this agreement.

XVI. AMERICANS WITH DISABILITIES ACT
By signing this agreement, grantee certifies that it is in compliance with the Americans with Disabilities Act (ADA) of 1990, (42 U.S.C., 12101 et seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA.

XVII. PREVAILING WAGE
Work done under this grant agreement may be subject to the prevailing wage and other related requirements of the California Labor Code, Division 2, Part 7, Chapter 1, sections 1720-1861.

If required by law to do so, the grantee shall pay prevailing wage to all persons employed in the Attachment 2

City of Watsonville
Grant Agreement No. G24-010

performance of any part of the project and otherwise comply with all associated requirements and obligations.

This agreement is funded in whole or in part with funds from the “Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006” (“Proposition 84”). Section 75075 of the Public Resources Code imposes on a body awarding any contract for a public works project financed in any part with Proposition 84 funds responsibility for adoption and enforcement of a “labor compliance program” under Labor Code section 1771.5(b). Regulations implementing Section 1771.5(b) include Title 8, California Code of Regulations, Division 1, Chapter 8, Subchapter 4.

The grantee is responsible for determining whether the project is subject to prevailing wage laws, and for complying with all labor laws applicable to the project. The grantee may also review the Conservancy publication, “Information on Prevailing Wage Laws for State Coastal Conservancy Grantees” (2023), available from the Conservancy on request, which provides general information and is not legal advice to the grantee on whether the grantee’s project is subject to prevailing wage laws.

XVIII.DRUG-FREE WORKPLACE
The grantee’s signature on this agreement constitutes the certification required by Government Code Section 8355 (Drug-Free Workplace Act of 1990), which requires that all state grantees provide a drug-free workplace by doing all of the following:

1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited in the person’s or organization’s workplace and specifying actions that will be taken against employees for violations of the prohibition.

2. Establishing a drug-free awareness program to inform employees about all of the following:
a. The dangers of drug abuse in the workplace.
b. The person’s or organization’s policy of maintaining a drug-free workplace. c. Any available drug counseling, rehabilitation, and employee assistance programs. d. The penalties that may be imposed upon employees for drug abuse violations.

3. Requiring that each employee engaged in the performance of the grant be given a copy of the drug-free workplace statement and that, as a condition of employment on the grant, the employee agrees to abide by the terms of the statement.

XIX. EXECUTIVE ORDER N-6-22 – RUSSIA SANCTIONS
On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” Attachment 2

City of Watsonville
Grant Agreement No. G24-010

refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the Conservancy determine the grantee is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement.

The Conservancy shall provide the grantee advance written notice of such termination, allowing the grantee at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the Conservancy.

XX. INDEPENDENT CAPACITY
The grantee, and the agents and employees of the grantee, in the performance of this agreement, are acting in an independent capacity and not as officers or employees or agents of the State of California.

XXI. ASSIGNMENT
Without the written consent of the Executive Officer, the grantee shall not assign this agreement in whole or in part.

XXII. TIMELINESS
Time is of the essence in this agreement.

XXIII.EXECUTIVE OFFICER’S DESIGNEE
The Executive Officer may designate a Conservancy project manager who will have authority to act on behalf of the Executive Officer with respect to this agreement. The designated project manager shall notify the grantee of the designation in writing.

XXIV. AMENDMENT
Except as expressly provided in this agreement, no change in this agreement will be valid unless made in writing and signed by the parties to the agreement. No oral understanding or agreement not incorporated in this agreement will be binding on any of the parties.

Attachment 2

City of Watsonville
Grant Agreement No. G24-010

XXV. SURVIVAL
The obligations in sections VII. WORK PRODUCTS AND ACKNOWLEDGMENT OF CONSERVANCY SUPPORT and XII. INDEMNIFICATION AND HOLD HARMLESS survive the termination of this agreement.

Attachment 2

Exhibit A: Project Location Maps
Project Location
Attachment 2

Exhibit A: Project Location Maps
Attachment 2

Exhibit A: Project Location Maps
Attachment 2

COASTAL CONSERVANCY
Staff Recommendation
September 18, 2025
LEE ROAD TRAIL PHASE 2 PLANNING
Project No. 17-045-02
Project Manager: Erin Gravley
RECOMMENDED ACTION: Consideration and authorization to disburse up to $1,068,300 to the City of Watsonville to prepare final designs and permit applications for the 0.5-mile second phase of the Lee Road Trail Project, which will add a 1.4-mile-long pedestrian and bicycle trail along Lee Road in Watsonville, Santa Cruz County and adoption of findings under the California Environmental Quality Act.

LOCATION: City of Watsonville, Santa Cruz County

EXHIBITS
Exhibit 1: Project Location Maps
Exhibit 2: Project Concept Plans
Exhibit 3: Project Photos
Exhibit 4: Project Letters
Exhibit 5: Watsonville Lee Road Trail Mitigated Negative Declaration, Initial Study and Mitigation Monitoring and Reporting
Program

RESOLUTION AND FINDINGS
Staff recommends that the State Coastal Conservancy adopt the following resolution and findings.

Resolution:

The State Coastal Conservancy hereby authorizes a grant of an amount not to exceed one million sixty-eight thousand three hundred dollars ($1,068,300) to the City of Watsonville (“the grantee”) to prepare final designs and permit applications for the 0.5-mile second phase of the Lee Road Trail Project, which will add a 1.4 mile long pedestrian and bicycle trail along Lee Road in Watsonville, Santa Cruz County.

Exhibit B: Staff Recommendation
Attachment 2

LEE ROAD TRAIL PHASE 2 PLANNING

Prior to commencement of the project, the grantee shall submit for the review and written approval of the Executive Officer of the Conservancy (Executive Officer) the following:

1. A detailed work program, schedule, and budget.

2. Names and qualifications of any contractors to be retained in carrying out the project.

3. In addition, to the extent appropriate, the City of Watsonville shall incorporate the guidelines of the Conservancy’s Coastal Access Project Standards.

Findings:

Based on the accompanying staff recommendation and attached exhibits, the State Coastal Conservancy hereby finds that:

1. The proposed authorization is consistent with Chapter 9 of Division 21 of the Public Resources Code, regarding the System of Public Accessways (Sections 31400-31410).

2. The proposed project is consistent with the current Conservancy Project Selection Criteria.

3. The Conservancy has independently reviewed and considered the Lee Road Trail Project Initial Study/Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program adopted by the County of Santa Cruz on March 12, 2021, pursuant to the California Environmental Quality Act (“CEQA”) and attached to the accompanying staff recommendation as Exhibit 5. The Conservancy finds that the Lee Road Trail Project as designed and mitigated avoids, reduces, or mitigates the potentially significant environmental effects to a less-than-significant level, and that there is no substantial evidence based on the record as a whole that the project will have a significant effect on the environment.

STAFF RECOMMENDATION
PROJECT SUMMARY:

Staff recommends the Conservancy authorize a $1,068,300 grant to the City of Watsonville to prepare final designs and permit applications for the second phase of the Lee Road Trail Project, which will add a 1.4-mile-long pedestrian and bicycle trail to the inland side of Lee Road in Watsonville, Santa Cruz County (Exhibit 1). The second phase is a 0.5-mile segment of the Lee Road Trail that includes a pedestrian and bicycle bridge over Struve Slough. Preparing final designs and permit applications for the second phase is referred to in this staff recommendation as “the project.”
The City of Watsonville is home to the Watsonville Slough System, a series of six interlinked freshwater sloughs at the southern end of Santa Cruz County. The system is one of the largest remaining freshwater marshlands in the state’s coastal zone, lying just adjacent to the developed portion of Watsonville and providing access to natural space for residents and visitors. In the past, Lee Road provided a connection from central Watsonville to the area west of Highway 1 and north of Struve Slough. Due to hydrologic changes in the slough system in the past few decades, Lee Road is now permanently submerged and there is no longer a direct Exhibit B: Staff Recommendation
Attachment 2

LEE ROAD TRAIL PHASE 2 PLANNING

connection from central Watsonville to this area, which also includes Pajaro Valley High School (see Exhibit 1).

The City of Watsonville in conjunction with the community and local partners has developed the Lee Road Trail Project to address this lack of connectivity. The vision is for a multiuse trail from central Watsonville across Struve Slough and north to Pajaro Valley High School. The Lee Road Trail will feed into an existing 9-mile trail network and provide a connection to planned trails in the City and unincorporated lands, including the Manabe-Ow Trail and Lower Watsonville Slough Trail east of Highway 1 and eventually the Monterey Bay Sanctuary Scenic Trail Network (MBSST Rail Trail), which once built will connect into the California Coastal Trail.

The Lee Road Trail will also provide access to the Land Trust of Santa Cruz County’s planned Community Harvest at Watsonville Slough Farm, a community space which will include five miles of trails, spaces for educational programming, and “u-pick” fruit orchards and vegetable plots free of cost to visitors.

The Lee Road Trail Project is divided into three phases organized by trail segment (see Exhibit 1). Phase 1 is the northernmost segment of the trail, beginning on Harkins Slough Road by Pajaro Valley High School and concluding at the entrance of Watsonville Slough Farm. Phase 1 is slated to be constructed in 2026. Phase 2 is the segment of trail that is the subject of this staff recommendation. It starts at Watsonville Slough Farm and continues southeast along Lee Road on an easement over California Department of Fish and Wildlife (CDFW) reserve lands, before crossing the flooded Struve Slough and concluding one block south on Lee Road. The segment will include a bicycle and pedestrian bridge across the slough, on roughly the same alignment as the submerged portion of Lee Road, connecting two existing pieces of the Watsonville Slough Trails. The bridge will be designed so that it can also accommodate emergency vehicles. Phase 3 connects the trail into the developed side of Watsonville, where users can travel further along City roads or the City’s 9-mile Watsonville Slough Trails. Phase 3 concludes at the site of the future MBSST Rail Trail.

The project includes completion of the 100% design plans for the Phase 2 segment of the trail; additional needed geotechnical site testing for the bridge components; and preparation and submission of permit applications for the remaining permits and permit extensions needed for construction. It also includes completion of schematic and final designs for the mitigation necessary to offset the environmental impacts of the Lee Road Trail Project, most notably the construction of the bridge included in Phase 2. The project includes a community engagement process to envision and design the art that will be displayed on the side of the Struve Slough bridge visible from Highway 1. This phase of the trail will improve the connections for the residential areas on the east side of the Highway to the CDFW Reserve on the west side.

Site Description: The Lee Road Trail will run roughly parallel to State Route 1, which is located less than one quarter of a mile east. East of Highway 1 is the City of Watsonville. Agriculture dominates the land use south of the trail and is largely row-crop farms. North and west of the trail is a mix of agriculture and wetlands. The trail alignment runs along the west side of Struve Slough adjacent to the Struve Slough Ecological Reserve owned by CDFW. To the west, it passes the Watsonville Slough Farm, owned by the Land Trust of Santa Cruz County. The northern terminus of the trail at Pajaro Valley High School is on the western boundary of the City of Exhibit B: Staff Recommendation
Attachment 2

LEE ROAD TRAIL PHASE 2 PLANNING

Watsonville, where trail users will access existing bicycle lanes and sidewalks to return to the Watsonville Sloughs trail system (Exhibit 1). The southern terminus of the Trail is at the site of the future MBSST Rail Trail—the railroad tracks just north of West Beach St.

Historically, Lee Road bisected Struve Slough to connect properties on either side; however, this portion of the road was abandoned by the City and County several years ago after seasonal pumping of the slough ceased and Lee Road remained flooded year-round.

The Conservancy has a history of investment in the project area. Conservancy funding has previously gone towards watershed planning for the sloughs system; acquiring and restoring the wetlands at Watsonville Slough Farm; planning for the MBSST Rail Trail; and a prior planning phase of the Lee Road Trail Project.

Grant Applicant Qualifications: The City of Watsonville operates a number of trails already, including the 9-mile Watsonville Slough Trails system (Exhibit 1). Many of these trails were designed by in-house engineers and construction was overseen by City staff. The City, in conjunction with Caltrans, recently completed design of a pedestrian and bicyclist bridge over Highway 1 on Harkins Slough Road, near the project site, and that bridge is currently out to bid for construction. The City has been the recipient of several Conservancy grants, including in 2001, 2015, and 2017.

Maintenance of the constructed Phase 2 trail will be the responsibility of the City, and the City will work with partners like the Land Trust of Santa Cruz County and the Santa Cruz County Parks Department to extend the current maintenance program for Phase 1. Additionally, the City contracts with Watsonville Wetlands Watch, a local non-profit, to maintain the City’s trail network, restore and enhance wetlands and habitat around the trails, and engage youth and the community in educational and volunteer environmental stewardship activities. Watsonville Wetlands Watch will help in the development of the Lee Road Trail Conceptual Mitigation Plan, which will guide monitoring for sensitive habitats and species during trail operation.

CONSISTENCY WITH CONSERVANCY’S PROJECT SELECTION CRITERIA:

The proposed project is consistent with the Conservancy’s Project Selection Criteria, last updated on September 23, 2021, in the following respects:

Selection Criteria

1. Extent to which the project helps the Conservancy accomplish the objectives in the Strategic Plan.

See the “Consistency with Conservancy’s Strategic Plan” section below.

2. Project is a good investment of state resources.

The Lee Road Trail Project came out of the Watsonville Trails and Bicycle Master Plan created in 2012. The trail will provide connections into several other regional trail networks such as the trails at the Watsonville Slough Farm and the MBSST Rail Trail. Once constructed, a portion of the MBSST Rail Trail will serve as the California Coastal Trail through Santa Cruz County. The Phase 2 trail segment will provide pedestrian, bicycle, and emergency vehicle access over the Exhibit B: Staff Recommendation
Attachment 2