Agenda packet — Watsonville City Council, June 23, 2026 (part 2 of 7)

Reso No.______ (CM) 2
Meeting Date: 060926

4. That after the bids are opened, they shall be tabulated and analyzed and a report submitted to the City Manager, who shall recommend the awarding, or other action, to the Council at its next regular meeting, or as soon thereafter as possible. ************************************

Page 172 of 1393 ends

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, June 23, 2026
TO: CITY COUNCIL
WRITTEN BY: FACILITIES MANAGER BERRY
RECOMMENDED BY: DEPUTY CITY MANAGER CALUBAQUIB
APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: RESOLUTION APPROVING CONTRACT CHANGE ORDER NO. 10, IN THE AMOUNT OF $207,671.49 WITH ROBERT A. BOTHMAN CONSTRUCTION FOR THE RAMSAY RENAISSANCE PROJECT, PK-22-01
RECOMMENDATION:

Adopt a resolution approving Contract Change Order No. 10 in the amount of $207,671.49 with Robert A. Bothman Construction for the Ramsay Park Renaissance Project, No. PK-22-01, and authorize and direct the City Manager to execute the same.

BACKGROUND:

On March 26, 2024, City Council approved Resolution No. 45-24 (CM) to award a construction contract to Robert A Bothman Construction for the Ramsay Park Renaissance Project, No. PK-22-01, in the amount of $24,530,000. A Notice to Proceed was issued on June 3, 2024, and the contractor began mobilization for the project. To date, nine change orders have been issued to the project:

Change Order Number 1 was approved by Director of Parks & Community Services Department on August 23, 2024, for upgrades to EV charger models resulting in additional costs and increasing the contract amount by $48,819.06.

Change Order Number 2 was approved by Director of Parks & Community Services Department on December 10, 2024, for an additional scope of work and increased the contract by $82,086.22. This scope of work covered the demolition of additional trees and existing facilities and addressed additional work due to PG&E’s requirements for potholing critical gas transmission lines.

On January 14, 2025, the City adopted Resolution No. 2-25 (CM) which approved Change Order No. 3 for the removal and replacement of unsuitable subgrade material and added two additional layers of

Page 173 of 1393 ends

2 engineered fabric at the multi-use field, which resulted in additional costs and increasing the contract by $587,708.10.

On May 27, 2025, the City adopted Resolution No. 128-25 (CM) which approved Change Order No. 4 for the additional costs that addressed unforeseen conditions due to environmental concerns and existing utilities, as well as changes by staff to the existing scope of work. This change order increased the contract amount by $385,337.59.

On May 27, 2025, the City Council adopted Resolution No. 138-25 (CM) authorizing the execution of a Bond Purchase Agreement in an aggregate principal amount not to exceed thirteen million dollars, of which $8.5 million would be used for the Ramsay Renaissance project.

On September 23, 2025, the City adopted Resolution No. 244-25 (CM) which approved Change Order No. 5 for the additional costs of redesigning the fencing at the multi-use field due to unforeseen conditions, a new entrance and gate at the play area entrance, replacement of the existing irrigation main line at the Sotomayer Soccer Field, and extra work performed by the contractor in working with PG&E for the removal of the retired gas transmission line. This change order increased the contract amount by $249,994.38.

On January 13, 2026, Council adopted Resolution No. 1-26 (CM) which approved Change Order No. 6 for a time extension of 168 days to the contract and extended overhead costs of $553,639.74. This covered delays to the project covering numerous issues. This resolution also approved Change Order No. 7 which addressed drainage revisions and modifications to the electrical switch gear enclosure. This change order increased the contract amount by $153,279.30 for a cumulative total of $706,919.04.

On March 24, 2026, Council adopted Resolution No. 47-26 (CM) which approved Change Order No. 8 for the additional costs of revisions to the irrigation systems at the multi-use field, renovation of the existing restroom, and changes to the parking lot design due to elevation challenges by the existing gas line concrete cap. This change order increased the contract amount by $357,694.67.

Om May 12, 2026, Council adopted Resolution No. 80-26 (CM) which approved Change Order No. 9 for the addition of a new accessible route from the playground / dog park area to the lower parking lot. The added work was needed as the proposed Nature Center project was relocated to the Ramsay Family Center, leaving a gap in the overall park design. This included the construction of an 8’ wide concrete walkway, site furnishings, and six new pedestrian lights. Included in the change order pricing was two months of general conditions and extended overhead that revised the substantial completion date. This amount was $958,523.61. The cumulative contract amount, including contract change orders one to nine is, $27,907,082.67.

DISCUSSION:

As of the end of May, the Ramsay Renaissance project is 85.5% completed. Work is progressing in two of the four main areas: The Playground / Dog Park Location, and the Main Street Parking lot. New sod has just been placed on the Sotomayer Field, and the maintenance period is about to begin. Staff continue to

Page 174 of 1393 ends

3 meet regularly with their consultants and the contractor to monitor the progress of the project, address issues in the field like unforeseen conditions, and review the standing scope of work for areas where improvements can be made that were not previously evident. Sometime resolving these issues results in extra cost to the City, as well as a delay to the schedule. Two major sources of delays continue to be the source of many of these extra costs and delays. Working around the PG&E gas transmission lines that intersect the park continues to represent challenges, most notably in the playground / dog park area and the parking lot.

Utility crossings must adhere to PG&E criteria, which in many cases require expensive alternatives to excavation, as heavy equipment is not allowed for work near the pipe. The second source of cost impact is modifications of the Ramsay Park scope to accommodate the relocation of the Nature Center project from the south side of the park to the Family Center. Now that the tenant improvement began, a separate construction entrance from Main St. to that building was constructed for access, as the Main St. parking lot will be under renovations for the next few months. Some of these costs are reflected in Contract Change Order No. 10, as well as the cause of further delays to the schedule.

Contract Change Order (CCO) No. 10 Breakdown:
 RFC 28r1 addressed revisions to the dog park and adjacent picnic area. Ornamental fencing was added to the back of the picnic area and gates were added to the fence between the dog parks and to the bioswale to provide access between the big dog and small dog areas and for maintenance. The RFC also provided additional irrigation for added trees.  RFC 49 was for work requested by staff to extend the block wall behind the backstop at the multiuse field on both sides to retain migrating soil due to the elevated existing grade.  RFC 52 added electrical circuits to the engineered design for the MUSCO lights at the Sotomayer Soccer Field to accommodate the original intent of having one half of the field lit at a time.  RFCs 50, 53, and 55 addressed additional costs for the HydroVac excavation around the gas lines for conduit installation and potholing, as well as rerouted conduits in the parking lot to minimize crossings of the gas line.
 RFC 58 compensates the contractor for the construction of the temporary entrance off Main Street to the Nature Center project. Access to the project for the Main Street parking lot would be difficult as that area is currently under construction as part of the Renaissance project. This work was tracked on a force account basis.

These changes culminate into a total of $207,671.49. Staff have reviewed Contract Change Order No. 10 and recommend that they be approved. CCO No. 10 will add to the scope of work and increase the contract by an amount not to exceed $207,671.49 to a revised total contract amount not to exceed $28,114,754.16.

Project Cost Update:

If CCO No. 10 is approved, the total value of approved change orders will be $3,585,564.16, representing a 14.62% increase over the original contract amount of $24,530,000. This total includes not only changes to the original scope of work, but also costs associated with project time extensions and major project

Page 175 of 1393 ends

4 additions. If CCO No. 6 (time extension costs), RFC 38 within CCO No. 8 (restroom renovations), and CCO No. 9 (southern access path addition) are excluded, the increase attributable to changes within the original project scope is reduced to 7.64%.

When the project was awarded to Robert A. Bothman, funding included a 10% contingency. With the project currently 85.5% complete, the change order amount remains within the anticipated contingency range and is consistent with the project's progress. Staff expect the full contingency amount to be utilized, with additional costs associated with the following items to be presented at a future date:
 Softball Backstop: The project originally planned to reuse portions of the existing softball backstop. However, further investigation found the existing supports do not meet current structural standards. A new backstop design is therefore required, resulting in additional costs.  Drainage Improvements to the Southern Access Road: Staff identified drainage issues in this area, although this scope was not included in the original scope of work. Following construction of an ADA-accessible walkway as part of the Watsonville Slough Connector Trail project, stormwater runoff that previously drained into the parking lot is now flowing across the walkway and landscaped areas and improvements are needed to address this issue.  Additional Project Signage: Regulatory and directional signage was previously added under CCO No. 4. During sign development, staff determined that most signs should be bilingual, increasing the number of signs required and associated costs.
 Southern Picnic Area: A picnic area south of the playground and dog park were included in the original project design but later shifted to the Nature Center project. When that project was not awarded, portions of the picnic area were removed to reduce costs, leaving only the southern access path and lighting, which were completed under CCO No. 9. Staff continue to support adding a picnic area and have requested pricing for a simplified design consisting of decomposed granite surfacing and site furnishings.
 Installation of Existing Ramsay Metal Slide: Installation of the existing slide from the former Ramsay Park playground has been more complex than anticipated. While the design was based on original plans, the slide was not constructed according to those plans. As a result, the consultant and contractor have had to develop modifications to ensure proper installation and compliance with current certified playground safety standards. This effort has delayed the completion of the playground surfacing.

In addition to the work described above, the project continues to experience cost impacts related to schedule delays. CCO No. 6 provided compensation for time extensions and extended overhead costs through April 2026, while CCO No. 9 further extended the contract completion date to June 21, 2026.

The May 2026 project update now forecasts substantial completion on October 29, 2026. Key factors contributing to the delay include modifications required for the playground slide installation, conflicts with an existing gas line in the parking lot, and the extended process of finalizing wayfinding signage content. While staff and the contractor will continue working to minimize further delays, additional extended overhead costs are anticipated.

Page 176 of 1393 ends

5 CCO No. 10, along with anticipated future change orders, will be funded through the previously approved lease bond. Staff expect all remaining work and associated costs to remain within the total project budget already appropriated.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

On August 16, 2023, an Administrative Use Permit and Design Review Permit with Environmental Review (PP2022-4245) was approved for the Ramsay Park Renaissance Project, including the Nature Center, by the City of Watsonville’s Zoning Administrator with no substantial evidence that the project will have a significant effect on the environment in accordance with Public Resources Code section 21080(c).

On August 29, 2023, a Notice of Determination with a Mitigated Negative Declaration and a Mitigation Monitoring and Reporting Plan (MMRP) was filed with the Santa Cruz CEQA Clerk and Office of Planning and Research by the Zoning Administrator pursuant to CEQA provisions.

The CEQA documentation prepared for the Ramsay Park Renaissance Project serves as the appropriate environmental documentation for proposed tenth Change Order to the Contract and satisfies all requirements of CEQA. No supplemental environmental documentation is required by CEQA at this time pursuant to CEQA Guidelines section 15162, because no substantial changes are proposed to the Project with this tenth Change Order to the Contract and no new information of substantial importance has been identified. Additionally, no addendum is required pursuant to CEQA Guidelines section 15164 because no technical changes or additions are proposed through this tenth Change Order to the Contract, and this change to Contract does not authorize any actions that will create any environmental impact that have not already been analyzed.

STRATEGIC PLAN:

This recommendation is consistent with the following Council Strategic Goals:
2) Infrastructure & Environment: Renovation of significant City infrastructure 6) Community Engagement & Well-Being: Parks support the community’s well-being FINANCIAL IMPACT:

Contract Change Order No. 10 will be funded from the following account:

Ramsay Park Investment Bond 0260-905-7820-15251
ALTERNATIVE ACTION:

The Council may choose not to accept this change order, and the remaining proposed scope of work will not be completed. Alternative details might need to be pursued.

Page 177 of 1393 ends

0 ATTACHMENTS AND/OR REFERENCES (IF ANY):
1) Ramsay Renaissance Change Order Log – June 2026

Page 178 of 1393 ends

Ramsay Renaissance Project
Change Order Log
6/4/2026
DATE Document DESCRIPTION SOURCE
AMOUNT

SUBMITTED
AMOUNT

APPROVED
CHANGE
ORDER Comments
7/18/24 RAB RFC #1R.1 EV Chargers upgrade RFI #05 $40,946.33 $40,946.33 1 7/18/24 RAB RFC #2 Additional pole cages per RFI 14 RFI #14 $769.58 Denied 7/18/24 RAB RFC #3 Removal of 4 additional trees ASI #6, 6.1 $4,600.00 $4,600.00 2 7/18/24 RAB RFC #4 Additional tree harvesting per ASI #8 ASI #8 $4,025.00 Denied 7/18/24 RAB RFC #5 Removal and disposal of scoreboard City $1,725.00 $1,725.00 2 8/6/24 RAB RFC #6 Romtec Storage Building Revisions by Owner Submittal
40 $7,872.73 $7,872.73 1
8/8/24 RAB RFC #7
Additional MUSCO Pole C1 to replace
demolished pole RFI #4 $15,371.53 Denied
8/20/24 RAB RFC #8 Removal of buried dugouts and footings As-builts
condition $6,138.57 $6,138.57 2
8/20/24 RAB RFC #9 Removal of existing asphalt gutter City $1,841.69 $1,841.69 2 8/20/24 RAB RFC #10
Change column and arch materail at
playground
Submittal

15.1 $47,826.90
Contract work
has been
deleted.
8/22/24 RAB RFC #11
Additional cost of anchor bolts per Submittal
response
Submittal
38 $1,015.11 $1,015.11 2
9/5/24 RAB RFC# 12
Additional U12 soccer striping at Multi Use
Field ASI $25,492.74 $25,492.74 2
RAB RFC#13 ASI 19 - Added rebar ASI #19 $4,113.39 $4,113.39 2 RAB RFC #14 Vac Truck on PG&E lines PG&E $37,159.72 $37,159.72 2 RAB RFC # 15
ASI 22 - Changes at Multi Use Field. /
Unsuitable soil required subex and
replacement
ASI 22 and
field
conditions $587,708.10 $587,708.10 3
1/14/25 RAB RFC #16R1
Added depth of electrical trench per Caltrans
permit. ASI # $7,514.91 $7,514.91 4
1/17/25 RAB RFC #17 Demolition at existing Musco poles RFI #61 $12,069.55 $12,069.55 4 1/18/25 RAB RFC#18
Electrical trenching work adjacent to PG&E
gas line at Playground PG&E $21,110.79 $21,110.79 4
1/19/25 RAB RFC #19
Fabricate and install Wayfinding Signs per
City provided design package ASI #28 $0.00 $0.00 4
1/23/25 RAB RFC #20R2 Rerouted Communication Conduit ASI #34 $52,935.13 $52,935.13 4 1/23/25 RAB RFC#21 New guardrails at the overlook ASI #30 $37,905.18 $37,905.18 4 1/31/25 RAB RFC#22 Additional Synthetic Turf ASI #33 $6,553.86 $6,553.86 4 3/3/25 RAB RFC #23 New cattails and entry at playground ASI #35 $189,587.00 $189,587.20 4 3/3/25 RAB RFC #24 Revised detail at eastern trail ASI #14 $41,444.75 $41,444.75 4 4/2/25 RAB RFC #25 Construction of deadman detail at Sotomayer ASI # 41 $16,216.22 $16,216.22 4 5/9/25 RAB RFC #26R.1 Revised fence footing and curb ASI #33.2 $158,045.20 $158,045.30 5 5/23/25 RAB RFC #27 Added playground railings and gates ASI #43 $35,058.10 $35,058.10 5 6/17/25 RAB RFC #28r1
Added fencing, irrigation, landscaping and
site furnishings at dogpark.

ASI #26.2
and .3 $121,342.20 $121,342.20
Arrpoved.

Pending CCO
No. 10
5/23/25 RAB RFC #29
Replace portion of irrigation mainline north of
Sotormayber Soccer Fiel RFI 85.1 $30,517.17 $30,517.67 5 5/30/25 RAB RFC #30 PG&E Vacuuming, excavating, and demo Site
Conditions $23,779.57 $23,779.57 5
6/26/25 RAB RFC #31 Adjust Musco Poles due to pole relocation ASI 33.1 $2,953.74 $2,593.74 5 7/3/25 RAB RFC #32 Added fence posts at Dog Park per RFI 74. RFI 74 $6,480.17 Comments sent
to Bothman
9/5/25 RAB RFC #33
Request for Time Extentions (per May 2025
Construction Update) = 04/21/2026 $553,639.74 $553,639.74 6 9/11/25 RAB RFC #34r1 RFI 93 SCM 21 Revisions RFI 93 $9,337.35 $9,337.35 7 9/8/25 RAB RFC #35 Backstop Posts and Fencing for Multi-Use ASI 53 $103,069.00 Estimate 12/2/25 RAB RFC 36 Addition of fencing to main switchgear pad. ASI 52r2 $138,641.08 $138,641.08 7 10/9/25 RAB RFC #37 Irrigation Changes around Multi-use Fied ASI 58 $20,223.92 $20,223.92 8 11/12/25 RAB RFC #38 Restroom Upgrades ASI 60 $199,840.24 $199,840.24 8 11/17/25 RAB RFC#39 Netting conflict with Musco lights RFI 111 $5,300.87 $5,300.87 7 12/11/25 RAB RFC#40 Hydroseed / Mulch Revision ASI 62 $96,366.04 Estimate 12/12/25 RAB RFC #41r1 Parking Lot Changes ASI 24 $137,630.51 $137,630.51 8 12/8/25 RAB RFC #42 Southern ADA Path to Nature Center Lot ASI 42.2 $958,523.61 $958,523.61 Approved. CCO
No. 9
3/23/26 RAB RFC #43 Entry Gateway Structural Engineering Calcs. ASI 35 $4,523.09 City questioning
second fee for
calculation.
3/23/26 RAB RFC #44 Power Receptacle to pitching manchine $6,215.79 Denied. 3/26/26 RAB RFC #46
Changes in scope to light foundations in
bioswale. RFI 14 $3,044.92 $3,044.92
Approved
Pending CCO
No. 10
3/26/26 RAB RFC #47 Copper Wire Price Escalation
Site
Conditions $140,247.03 Denied
5/15/26 RAB RFC #48 Planting Revisions for project ASI 46 $25,446.24 4/1/26 RAB RFC #49 New concrete curbs behind backstop ASI 64 $17,337.85 $17,337.85 Approved
Pending CCO
No. 10
4/1/26 RAB RFC #50
Vacuuming per PG&E Requirements for work
near gasline.

Site
Conditions $20,016.79 $20,016.79
Approved
Pending CCO
No. 10
4/20/26 RAB RFC #52 Finalize design for Musco Circuit Controls RFI 124 $11,057.43 $11,057.43 Approved
Pending CCO
No. 10
5/20/26 RAB RFC #53
Vacuum and pothole to locate gas line in
parking lot
Field
Conditions $7,624.72 $7,624.72
Approved
Pending CCO
No. 10
5/20/26 RAB RFC #54 Dirt soil analytical test and report Change in
Scope $18,460.95 Denied
5/20/26 RAB RFC #55 Parking Lot Conduit Reroute
Existing
conditions $14,907.71 $14,907.71
Approved
Pending CCO
No. 10
5/29/26 RAB RFC #56 Installation of Redwood logs and Boulders ASI 70 $21,054.88 Revise and
Resubmit
5/29/26 RAB RFC #57 Irrigation changes on north side of parking lot ASI 66.1 $24,662.30 5/29/26 RAB RFC#58 Construction Entrance at Nature Center City
Request $13,149.87 $13,149.87
Approved
Pending CCO
No. 10
Totals to Date $4,100,441.86 $3,585,564.16 $0.00
Percentage of change orders per original
contract. $24,530,000 16.72% 14.62% 0.00%
Change Order Total less added scope and
extended overhead
RFC#33 / Extended overhead $553,639.74 $553,639.74
RFC #38 ( Addition of Restroom) $199,840.24 $199,840.24 RFC #42 (Southern Access Path) $958,523.61 $958,523.61
Change Order total less extended
overhead and additions to base design $2,388,438.27 $1,873,560.57 Percentage of change orders (less RFC
#33 Extended Overhead abd added scope
items) per original contract. $24,530,000 9.74% 7.64%
Attachment 1

Page 1 of 1 ends

1 Reso No. ______ (CM)
Reference: Reso No.s 2-25, 128-25, 244-25, 1-26, 47-26 and 80-26 (Amend) Meeting Date: 062326 SWZ ______ TV ______ PCS ______
RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING CONTRACT CHANGE ORDER NUMBER
10, WITH ROBERT A BOTHMAN CONSTRUCTION FOR THE RAMSAY
PARK RENAISSANCE PROJECT,NO. PK-22-01, ADDING TO THE

SCOPE OF WORK, INCREASING THE CONTRACT AMOUNT BY
$207,671.49, FOR A REVISED TOTAL CONTRACT AMOUNT NOT TO EXCEED $28,114,754.16, EXTENDING THE CONTRACT TERM FROM JUNE 21, 2026 TO OCTOBER 29, 2026, AND AUTHORIZING AND

DIRECTING THE CITY MANAGER TO EXECUTE SAME
WHEREAS, on December 12, 2013, the City Council adopted Resolution No. 229- 23 (CM), approving plans and specifications for the Ramsay Park Renaissance Project, No. PK-22-01and authorized calling for bids; and
WHEREAS, following bid opening, a contract was executed with the lowest responsible bidder on March 26, 2024, and City Council adopted Resolution No. 45-24 (CM) awarding a construction contract to Robert A Bothman Construction for Ramsay Park Renaissance Project, No. PK-22-01, in the amount not to exceed $24,530,000; and WHEREAS, Change Order Number 1 was approved by Director of Parks & Community Services Department on August 23, 2024, for upgrades resulting in additional costs, and increased the contract amount by an amount not to exceed $48,819.06, for a revised total contract amount not to exceed $24,578,819.06; and WHEREAS, Change Order Number 2 was approved by Director of Parks & Community Services Department on December 10, 2024, for an additional scope of work and increased the contract by an amount not to exceed $82,086.22, for a revised total contract amount not to exceed $24,660,905.28; and
WHEREAS, Change Order Number 3 was approved when Council adopted Resolution No. 2-25 (CM) on January 14, 2025, for additional scope of work and increased the contract by an amount not to exceed $587,708.10, for a revised total

Page 180 of 1393 ends

2 Reso No. ______ (CM)
Reference: Reso No.s 2-25, 128-25, 244-25, 1-26, 47-26 and 80-26 (Amend) Meeting Date: 062326
contract amount not to exceed $25,248,613.38; and
WHEREAS, Change Order No. 4 was approved when Council adopted Resolution No. 128-25 (CM) on May 27, 2025, for additional scope of work and increased the contract by an amount not to exceed $385,337.59, for a revised total contract amount not to exceed $25,633,950.97; and
WHEREAS, Change Order No. 5 was approved when Council adopted Resolution No. 244-25 (CM) on September 23, 2025, for additional scope of work and increased the contract by an amount not to exceed $249,994.38, for a revised total contract amount not to exceed $25,883,945.35; and
WHEREAS, Contract Change Order No. 6 and 7 were approved when Council adopted Resolution No. 1-26 (CM) on January 13, 2026 Contract Change Order No. 6 increased the contract amount by $553,639.74 for the extended overhead costs on the project and Contract Change Order No. 7 increased the contract amount by $153,279.30 for redesign costs, for a cumulative total of $706,919.04, and a revised total contract amount not to exceed $26,590,864.39; and
WHEREAS, Contract Change Order No. 8 was approved when Council adopted Resolution No. 47-26 (CM) on March 24, 2026, for additional scope of work and increased the contract by an amount not to exceed $357,694.67, for a revised total contract amount not to exceed $26,948,559.06; and
WHEREAS, Contract Change Order No. 9 was approved when Council adopted Resolution No. 80-26 (CM) on May 12, 2026, for additional scope of work and increased the contract by an amount not to exceed $958,523.61, for a revised total contract amount not to exceed $27,907,082.67.

WHEREAS, this Contract Change Order No. 10 will add to the scope of work,

Page 181 of 1393 ends

3 Reso No. ______ (CM)
Reference: Reso No.s 2-25, 128-25, 244-25, 1-26, 47-26 and 80-26 (Amend) Meeting Date: 062326
increase the contract by an amount not to exceed $207,671.49, for a revised total contract amount not to exceed $28,114,754.16 and extend the contract term to October 29, 2026.

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

1. No additional CEQA review is required because approving an increase in compensation for this Contract is consistent with the CEQA documentation prepared for the Project and approved by the City Council. The City Council finds and determines that (i) the CEQA documentation prepared for the Ramsay Park Renaissance Project serves as the appropriate environmental documentation for proposed Change Order No. 10 to Contract and satisfies all requirements of CEQA; and (ii) no supplemental environmental documentation is required by CEQA at this time pursuant to CEQA Guidelines section 15162, because no substantial changes are proposed to the Project with this Change Order No. 10 and no new information of substantial importance has been identified.

Additionally, no addendum is required pursuant to CEQA Guidelines section 15164 because no technical changes or additions are proposed through this Change Order No. 10 to the Contract.

2. That Change Order No. 10 between the City of Watsonville and Robert A Bothman Construction, a copy of which is attached, 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.
*****************************

Page 182 of 1393 ends

CITY OF WATSONVILLE
Parks and Community Services Department
CONTRACT CHANGE ORDER NO: #10
Project Name: Ramsay Renaissance Project City Project No: PK 22-01 Contract No: #3014
Project Location: 1301 Main Street
Watsonville, CA 95076
To: Robert A. Bothman, Inc.

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:
4/1/26 RFC 28r1 / ASI 26.2: Install new guardrail and fencing, and address planting revisions. $121,342.20 Revisions at the dogpark included a new ornamental guardrail at the picnic area, some additional fencing and gates in the dogpark area to improve access between areas, and revisions to irrigation that included seven additional trees and some planting modifications. 3/26/26 RFC 46 / RFI 14: Address structural requirements for light foundations in bioswales. $3,044.92 Structural details did not reflect the need for deepened footings for parking lot light foundations that were to be installed in the bioswales. Contractor incurred extra cost to provide deeper footings.
4/1/26 RFC 49 / ASI 64: Provide two new concrete walls behind backstop for soil retainage. $17,337.85 The existing retaining wall behind the backstop at the multiuse field needed to be extended in length on both side to retain migrating soil due to a high existing grade. Contractor was directed to perform the work on time and material.
4/1/26 RFC 50: HydroVac use on electrical conduit installation at gas line at playground. $20,016.79 Electrical contractor had to use HydraVac system for conduit installation at crossings of high pressure gas lines to meet PG&E excavation requirements. 4/20/26 RFC 52 / RFI 124: Add circuits for MUSCO controls. $11,057.43 The MUSCO lights have Sotomayer Field were designed for the option to light one half of the field at a time. Circuits to accommodate this function were not included in the electrical plans. Circuits in the panel and additional wiring were required to be added to the project. 5/20/26 RFC 53: Hydro-Vac potholing at PG&E gas line in parking lot. $7,624.72 The contractor has to use the vacuum method of excavation to pothole the actual depth of the PG&E gas transmission lines to help determine strategies for utility crossing. 5/21/26 RFC 55 - Parking lot conduit reroutes. $14,097.71 Due to the PG&E gas transmission lines that traverses the Main Street Parking lot, the electrical subcontractor had to reroute the conduits that serve the parking lot lights to minimize the crossings of the utility.

Page 183 of 1393 ends

5/29/26 RFC 58 - Construction Entrance for Nature Center T. I. at Family Center $13,149.87 Per City direction, contractor constructed a temporary entrance for the Nature Center T.I. project at the Family Center to provide access and parking for that project's contractor.

The Ramsay Renaissance project will be working on the Main Street parking lot at that time.

Total of Change Order No. 10 $207,671.49
The Original Contract Sum Was: $24,530,000.00
Net Change by Previously Authorized Change Orders $3,377,082.67 The Contract Sum Prior to this Change Order was $27,907,082.67 The Contract Sum will be increased by this change Order(s) in the Amount of $207,671.49 The New Contract Sum Including this Change Order will be $28,114,754.16 By reason of this order the time of completion will
be adjusted as follows: 0
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
Lito S. Umali
Digitally signed by Lito S. Umali
DN: C=US, [email protected],
O=Robert A. Bothman Construction,
OU=Sr. Project Manager, CN=Lito S. Umali
Date: 2026.06.06 06:58:12-07'00'
06/06/2026 Robert A. Bothman, Inc. Lito S. Umali Sr. Project Manager

Page 184 of 1393 ends

Page 185 of 1393 ends

Page 186 of 1393 ends

Page 187 of 1393 ends

Page 188 of 1393 ends

Page 189 of 1393 ends

Page 190 of 1393 ends

Page 191 of 1393 ends

Page 192 of 1393 ends

Page 193 of 1393 ends

Page 194 of 1393 ends

Page 195 of 1393 ends

Page 196 of 1393 ends

Page 197 of 1393 ends

Page 198 of 1393 ends

Page 199 of 1393 ends

Page 200 of 1393 ends

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, June 23, 2026
TO: CITY COUNCIL
WRITTEN BY: ASSISTANT PUBLIC WORKS DIRECTOR FONTES
RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR GREEN APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: APPROVE FIFTH AMENDMENT TO CONTRACT WITH TRAFFIC PATTERNS, LLC. FOR ON-CALL TRAFFIC ENGINEERING SERVICES, AMEND COMPENSATION TO PROVIDE AN ADDITIONAL $100,000 AND EXTEND TERM TO JUNE 30, 2027
RECOMMENDATION:

Staff recommend the City Council adopt a resolution approving a Fifth Amendment to Contract with Traffic Patterns LLC., for On-Call Traffic Services for Design Review, Traffic Engineering Studies, Traffic Analysis Review, Private Development Site Plan Review and Off-Site Improvement Concept Plans, amending the contract compensation to provide an additional $100,000, for a total contract amount not to exceed $605,000, and extending the Contract Term to June 30, 2027.

BACKGROUND:

On December 22, 2021, the City executed a contract with Traffic Patterns LLC., for On-Call Traffic Services for Design Review, Traffic Engineering Studies, Traffic Analysis Review, Private Development Site Plan Review and Off-Site Improvement Concept Plans in an amount not to exceed $95,000, and a contract expiration date of June 30, 2024.

On February 27, 2024, the City Council adopted Resolution No. 27-24 (CM) approving a First Amendment to Contract and increasing the contract compensation in the amount of $95,000 for a total amount not to exceed $190,000 with no change to the Contract Term.

On May 28, 2024, the City Council adopted Resolution No. 90-24 (CM) approving a Second Amendment to Contract, increasing the contract compensation in the amount of $95,000 for a total amount not to exceed $285,000 and extending the Contract Term to June 30, 2025.

Page 201 of 1393 ends

2 On February 11, 2025, the City adopted Resolution 27-25 (CM) approving a Third Amendment to the Contract and increasing the contract compensation to provide an additional $95,000 for a total contract amount not to exceed $380,000 with no change to the Contract Term.

On May 27, 2025, the City Council adopted Resolution No. 129-25 (CM) approving a Fourth Amendment to Contract, increasing the contract compensation in the additional amount of $125,000 for a total amount not to exceed $505,000 and extending the contract term to June 30, 2026.

DISCUSSION:

In 2021, the City contracted with Traffic Patterns to provide traffic engineering services on an on-call, asneeded basis. Since the City’s Traffic Operations Manager position became vacant in 2023, Jaime Rodriguez, Principal Engineer of Traffic Patterns LLC, has performed some of the Manager's duties. As the Manager position will not be filled within the next fiscal year, the City wishes to retain Traffic Patterns’ services through June 30, 2027, and will need additional funds. Staff recommend that the City Council approve a Fifth Amendment to the Contract with Traffic Patterns LLC, increasing compensation by $100,000, for a total not to exceed $605,000.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

Adopting a contract for, or an amendment to a contract for On-Call Traffic Services for Design Review, Traffic Engineering Studies, Traffic Analysis Review, Private Development Site Plan Review and Off-Site Improvement Concept Plans with Traffic Patterns LLC. 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. This amendment does not create any new impacts that have not been previously considered.

STRATEGIC PLAN:

This project is consistent with the following strategic plan goals.

Infrastructure & Environment
Public Safety
FINANCIAL IMPACT:

The Fifth Amendment to Contract will provide an additional $100,000, for a contract total amount not to exceed $605,000. Funding for this amendment will be available from the City’s approved budget in the following account:
0305-309-7361 Other Contract Services
ALTERNATIVE ACTION:

No reasonable alternatives are known currently.

Page 202 of 1393 ends

3 ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

Page 203 of 1393 ends

Reso No. ______ (CM)
Reference: Reso No’s 27-94, 90-24, 27-25 and 129-25 (Amend) Meeting Date: 060926 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING FIFTH AMENDMENT TO CONTRACT FOR

CONSULTANT SERVICES BETWEEN THE CITY OF WATSONVILLE
AND TRAFFIC PATTERNS LLC., A LIMITED LIABILITY COMPANY, FOR

ON CALL TRAFFIC ENGINEERING SERVICES FOR DESIGN REVIEW,

TRAFFIC ENGINEERING STUDIES, TRAFFIC ANALYSIS REVIEW,

PRIVATE DEVELOPMENT SITE PLAN REVIEW AND OFF SITE

IMPROVEMENT CONCEPT PLANS, INCREASING COMPENSATION IN
THE AMOUNT OF $100,000, FOR A REVISED TOTAL CONTRACT
AMOUNT OF $605,000; EXTENDING THE TERM OF THE CONTRACT
FROM JUNE 30, 2026, TO JUNE 30, 2027; AND AUTHORIZING AND

DIRECTING THE CITY MANAGER TO EXECUTE SAME
WHEREAS, on December 22, 2021, the City executed a contract with Traffic Patterns, LLC., a limited liability company, for the On-Call Traffic Services for Design Review, Traffic Engineering Studies, Traffic Analysis Review, Private Development Site Plan Review and Off-Site Improvement Concept Plans, in an amount not to exceed $95,000 and a contract expiration date of June 30, 2024; and WHEREAS, on February 27, 2024, the City Council adopted Resolution No. 27-24 (CM), approving a First Amendment to Contract, increasing the contract compensation in the amount of $95,000 for a total contract amount not to exceed $190,000 with no change to the Contract Term; and
WHEREAS, on May 28, 2024, the City Council adopted Resolution No. 90-24 (CM) approving a Second Amendment to Contract, increasing the contract compensation in the amount of $95,000 for a total amount not to exceed $285,000 and extending the Contract Term to June 30, 2025; and
WHEREAS, on February 11, 2025, the City Council adopted Resolution No. 27-25 (CM) approving a Third Amendment to Contract and increasing the contract compensation in the additional amount of $95,000 for a total amount not to exceed $380,000 with no change to the contract term; and

Page 204 of 1393 ends

Reso No. ______ (CM)
Reference: Reso No’s 27-94, 90-24, 27-25 and 129-25 (Amend) Meeting Date: 060926
2 WHEREAS, on May 27, 2025, the City Council adopted Resolution No. 129-25 (CM) approving a Fourth Amendment to Contract, increasing the contract compensation in the additional amount of $125,000 for a total amount not to exceed $505,000 and extending the contract term to June 30, 2026; and
WHEREAS, this Fifth Amendment to Contract will increase compensation by $100,000, for a total contract amount of $605,000 and extend the contract term from June 30, 2026, to June 30, 2027; and
WHEREAS, additional funding is needed to ensure that the On-Call Traffic Services for Design Review, Traffic Engineering Studies, Traffic Analysis Review, Private Development Site Plan Review and Off-Site Improvement Concept Plans Services can continue through fiscal year 2026-2027.

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

1. Adopting a Resolution approving a Fifth Amendment to Contract with Traffic Patterns LLC., 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. The Fifth Amendment to the Contract between the City of Watsonville and Traffic Patterns LLC., a limited liability company, 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 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.
**************************************

Page 205 of 1393 ends

FIFTH AMENDMENT TO CONSULTANT SERVICES CONTRACT

BETWEEN THE CITY OF WATSONVILLE
AND TRAFFIC PATTERNS, LLC.

THIS FIFTH AMENDMENT TO CONTRACT for consultant services is entered into by and between the City of Watsonville ("City") and Traffic Patterns LLC. (“Consultant”) this day of ___________________________. The City and Consultant agree as follows:

RECITALS
WHEREAS, City and Consultant have previously executed a Consultant Services Contract to provide on-call Traffic Engineering Services dated December 11, 2023; and WHEREAS, the original contract was in the amount of $95,000 with an expiration date of June 30, 2024; and
WHEREAS, the contract was awarded through a request for qualifications that was issued on May 12, 2021, and submitted on June 15, 2021; and WHEREAS, on February 27, 2024, the City Council adopted Resolution No. 90-24 (CM) approving the First Amendment to Contract, increasing the contract compensation in the amount of $95,000, for a total contract amount not to exceed $190,000 with no change to the Contract Term; and
WHEREAS, on May 28, 2024, the City Council adopted Resolution No. 90-24 (CM) approving the Second Amendment to Contract and increasing the contract compensation, in the amount of $95,000 for a total amount not to exceed $285,000 and extending the Contract Term to June 30, 2025; and
WHEREAS, on February 11, 2025, the City Council adopted Resolution No. 27-25 (CM) approving the Third Amendment to Contract and increasing the contract Docusign Envelope ID: E37FF7B7-4735-88B6-82A3-EF8DD27BDFC9

Page 206 of 1393 ends

compensation in the additional amount of $95,000 for a total amount not to exceed $380,000 with no change to the contract term; and
WHEREAS, on May 27, 2025, the City Council adopted Resolution No. 129-25 (CM) approving the Fourth Amendment to Contract and increasing the contract compensation in the additional amount of $125,000 for a total amount not to exceed $505,000 and extending the contract term to June 30, 2026; and WHEREAS, this Fifth Amendment of the Contract for Consultant Services is in the best interest of the City of Watsonville.

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

Section 2 is hereby amended as follows:

The Term of Contract is extended to June 30, 2027.

Section 3 and Exhibit B, both entitled “Schedule of Performance are hereby amended to read as follows:
"Work to be completed by June 30, 2027.”
Section 4 is hereby amended as follows:

Section 4 and Exhibit "C" both entitled "Compensation" of the Contract, are hereby amended to provide an additional amount of compensation of One Hundred Thousand Dollars ($100,000) for a Total Contract Amount not-to-exceed $605,000.

All other terms and conditions of the Contract dated December 11, 2023, as amended, shall remain in full force and effect.

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

Docusign Envelope ID: E37FF7B7-4735-88B6-82A3-EF8DD27BDFC9

Page 207 of 1393 ends

CITY OF WATSONVILLE TRAFFIC PATTERNS, LLC.

By___________________________ By______________________________ Tamara Vides, City Manager Jaime O. Rodriguez, Principal ATTEST:

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

By____________________________
Samantha W. Zutler, City Attorney
Docusign Envelope ID: E37FF7B7-4735-88B6-82A3-EF8DD27BDFC9

Page 208 of 1393 ends

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, June 23, 2026
TO: CITY COUNCIL
WRITTEN BY: ASSISTANT PUBLIC WORKS & UTILITIES DIRECTOR FONTES RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR GREEN APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: APPROVE FOURTH AMENDMENT TO CONTRACT WITH G7EI, INC., FOR

PROJECT MANAGEMENT SERVICES, AMEND COMPENSATION TO
PROVIDE AN ADDITIONAL $60,000, EXTEND THE TERM OF THE
CONTRACT TO JUNE 30, 2027, AND AUTHORIZE THE CITY MANAGER TO

EXECUTE THE DOCUMENTS
RECOMMENDATION:

Staff recommends that the City Council adopt a resolution approving the Fourth Amendment to the Contract with G7ei, Inc., for Project Management Services, amend the contract compensation to provide an additional $60,000, for a total contract amount not to exceed $434,560, and extend the Contract Term to June 30, 2027.

BACKGROUND:

On December 11, 2023, the City executed a contract with G7ei, Inc., for Project Management Services, in an amount not to exceed $91,520, and a contract expiration date of June 20, 2024.

On June 11, 2024, the City Council adopted Resolution No. 103-24 (CM) approving the First Amendment to Contract and increasing the contract compensation in the amount of $91,520 for a total amount not to exceed $183,040 and extending the Contract Term to June 30, 2025.

On February 11, 2025, the City Council adopted Resolution No. 29-25 (CM) approving the Second Amendment to Contract and increasing the contract compensation in the amount of $91,520 for a total amount not to exceed $274,560 with no change to the Contract Term.

Page 209 of 1393 ends

2 On May 27, 2025, the City Council adopted Resolution No. 130-25 (CM) approving the Third Amendment to Contract, increasing the contract compensation in the amount of $100,000 for a total amount not to exceed $374,560 and extending the Contract Term to June 30, 2026.

DISCUSSION:

In late 2023, the Public Works & Utilities Department Engineering Division had several engineering positions vacant and could not recruit replacements. To address this need, balance workload and complete projects, staff contracted with G7ei, Inc., and hired Project Manager Eda Herrera to assist parttime for the first six months of 2024. These positions were not filled and her contract was extended. As the engineering positions remain vacant and are not expected to be filled in the coming fiscal year, staff recommend that the City Council approve a Fourth Amendment to Contract with G7ei, Inc., add $60,000 for a new total compensation amount not to exceed $434,560, and extend the Contract Term to June 30, 2027.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

Adopting a fourth contract amendment for project management services with G7ei, Inc. does not meet CEQA’s definition of a “Project,” because adopting a contract for project management services 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.

STRATEGIC PLAN:

This project is consistent with the following strategic plan goals:

Infrastructure & Environment
FINANCIAL IMPACT:

This Fourth Amendment to Contract will provide an additional $60,000 for a contract total amount not to exceed $434,560. Funding for this amendment is available from the City’s approved budget in Account #0201-975-7361.

ALTERNATIVE ACTION:

No reasonable alternatives are known at this time.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

Page 210 of 1393 ends

Reso No. (CM)
Meeting Date: 062326 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING FOURTH AMENDMENT TO CONTRACT

FOR CONSULTANT SERVICES BETWEEN THE CITY OF
WATSONVILLE AND G7EI, INC., FOR PROJECT MANAGEMENT

SERVICES, INCREASING COMPENSATION IN THE AMOUNT OF
$60,000, FOR A REVISED TOTAL CONTRACT AMOUNT OF $434,560; EXTENDING THE TERM OF THE CONTRACT FROM JUNE 30, 2026 TO JUNE 30, 2027; AND AUTHORIZING AND DIRECTING THE CITY

MANAGER TO EXECUTE SAME
WHEREAS, on December 11, 2023, the City executed a contract with G7ei, Inc., for Project Management Services, in an amount not to exceed $91,520 and a contract expiration date of June 30, 2024; and
WHEREAS, on June 11, 2024, the City Council adopted Resolution No. 103-24 (CM), approving a First Amendment to Contract, increasing the contract compensation in the amount of $91,520 for a total contract amount not to exceed $183,040 and extending the Contract Term to June 30, 2025; and
WHEREAS, on February 11, 2025, the City Council adopted Resolution No. 29-25 (CM) approving a Second Amendment to Contract and increasing the contract compensation in the amount of $91,520 for a total amount not to exceed $274,560 with no change to the Contract Term; and
WHEREAS, on May 27, 2025, the City Council adopted Resolution No. 130-25 (CM) approving a Third Amendment to Contract, increasing the contract compensation in the additional amount of $100,000 for a total amount not to exceed $374,560 and extending the Contract Term to June 30, 2026; and
WHEREAS, this Fourth Amendment to Contract will increase compensation by $60,000 for a total contract amount of $434,560 and extend the contract term from June 30, 2026, to June 30, 2027; and

Page 211 of 1393 ends

Reso No. (CM)
Meeting Date: 062326
2 WHEREAS, additional funding is needed to ensure that the Project Management Services can continue through fiscal year 2026-2027.

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

1. Adopting a Resolution approving a Fourth Amendment to Contract with G7ei, Inc., 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. The Fourth Amendment to the Contract between the City of Watsonville and G7ei, Inc., a copy of which is attached hereto and incorporated herein by this reference, is hereby approved.

Page 212 of 1393 ends

FOURTH AMENDMENT TO CONSULTANT SERVICES CONTRACT

BETWEEN THE CITY OF WATSONVILLE
AND G7EI, INC.

THIS FOURTH AMENDMENT TO CONTRACT for consultant services is entered into by and between the City of Watsonville ("City") and G7ei, Inc. (“Consultant”) this day of ______________________________. The City and Consultant agree as follows:

RECITALS
WHEREAS, City and Consultant have previously executed a Consultant Services Contract to provide on-call Project Management Services dated December 11, 2023; and WHEREAS, the original contract was in the amount of $91,520 with an expiration date of June 30, 2024; and
WHEREAS, the contract was awarded through a request for qualifications that was issued on May 12, 2021, and submitted on June 15, 2021; and WHEREAS, on June 11, 2024, the City Council adopted Resolution No. 103-24 (CM) approving the First Amendment to Contract, increasing the contract compensation in the amount of $91,520, for a total contract amount not to exceed $183,040 and extending the Contract Term to June 30, 2025; and
WHEREAS, on February 11, 2025, the City Council adopted Resolution No. 29-25 (CM) approving the Second Amendment to Contract and increasing the contract compensation in the amount of $91,520 for a total amount not to exceed $274,560 with no change in the Contract Term; and
WHEREAS, on May 27, 2025, the City Council adopted Resolution No. 130-25 (CM) approving the Third Amendment to Contract, increasing the contract compensation Docusign Envelope ID: B182B547-3EF9-8418-81C7-9D709FC49276

Page 213 of 1393 ends

in the additional amount of $100,000 for a total amount not to exceed $374,560 and extending the Contract Term to June 30, 2026; and
WHEREAS, this Fourth Amendment of the Contract for Consultant Services is in the best interest of the City of Watsonville.

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

Section 2 is hereby amended as follows:

The Term of Contract is extended to June 30, 2027.

Section 3 and Exhibit B, both entitled “Schedule of Performance are hereby amended to read as follows:
"Work to be completed by June 30, 2027.”
Section 4 is hereby amended as follows:

Section 4 and Exhibit "C", both entitled "Compensation" of the Contract, are hereby amended to provide an additional amount of compensation of Sixty Thousand Dollars ($60,000) for a Total Contract Amount not-to-exceed $434,560.

All other terms and conditions of the Contract dated December 11, 2023, as amended, shall remain in full force and effect.

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

CITY OF WATSONVILLE G7EI, INC.

By___________________________ By______________________________ Tamara Vides, City Manager Paul H. Greenway, PE & President ATTEST:

Docusign Envelope ID: B182B547-3EF9-8418-81C7-9D709FC49276

Page 214 of 1393 ends

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

By____________________________
Samantha W. Zutler, City Attorney
Docusign Envelope ID: B182B547-3EF9-8418-81C7-9D709FC49276

Page 215 of 1393 ends

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, June 23, 2026
TO: CITY COUNCIL
WRITTEN BY: LANDFILL SUPERVISOR GORDO
RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR GREEN APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: APROVE FIRST AMENDMENT TO CONTRACT WITH VISION RECYCLING

FOR THE GRINDING OF WOOD WASTE AND YARD WASTE AT THE
LANDFILL, INCREASING THE AMOUNT BY $26,000.65 AND EXTENDING THE CONTRACT TERM TO AUGUST 31, 2026
RECOMMENDATION:

It is recommended that the City Council adopt a resolution approving the first amendment to contract with Vision Recycling, for the grinding of wood waste and yard waste at the City Landfill, increasing the amount by $26,000.65, for a revised total contract amount of $111,000.65, and extending the contract term to August 31, 2026; and authorizing and directing the City Manager to execute the same.

BACKGROUND:

On September 6, 2022, the City and Consultant previously executed a contract for the grinding of wood waste and yard waste at the City Landfill. In where the original contract was in the amount of $85,000 with an expiration date of June 30, 2025.

The Solid Waste Division contacted three companies, Community Tree Service, Gibson Resource Group Inc. and Vision Recycling. Vision Recycling is the only one to be readily available, with no charge for equipment mobilization and provides the best cost for the service.

DISCUSSION:

Due to State Regulations that need to be met, the wood and yard waste cannot be left out in the outside elements because it can become a fire hazard. Vision Recycling has been providing chipping services at the City Landfill for wood and yard waste which offsets the price when hauling it to Livermore, where it is

Page 216 of 1393 ends

2 later turned into fuel or compost. When the wood/yard waste is not ground prior to handling, the city is charged more for a larger load.

This amendment will add funds, in the amount of $26,000.65, for a revised total contract amount of $111,000.65 and extend contract term to August 31, 2026, to allow staff sufficient time to issue a new Request for quotes for on-call chipping services and complete the remaining chipping work already planned.

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 15301 Class 1, in that chipping services involve the operation and maintenance of existing public structures (a landfill) that involves negligible or no expansion of existing use.

STRATEGIC PLAN:

This action is consistent with the following Strategic Plan goals:

Infrastructure & Environment
FINANCIAL IMPACT:

The First Amendment increases compensation in the amount of $26,000.65 for a revised total contract amount of $111,000.65. There are sufficient funds in budget account code 0740-575-7361 (Other Contract Services).

ALTERNATIVE ACTION:

There are no reasonable known alternatives at this time.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

Page 217 of 1393 ends

Reso No. (CM)
Meeting Date: 060926 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING FIRST AMENDMENT TO CONTRACT

BETWEEN THE CITY OF WATSONVILLE AND VISION RECYCLING,

FOR THE GRINDING OF WOOD WASTE AND YARD WASTE AT THE
LANDFILL, ADDING AN AMOUNT NOT TO EXECEED $26,000.65 FOR A TOTAL REVISED CONTRACT AMOUNT OF $111,000.65, AND
EXTENDING THE CONTRACT TERM FROM JUNE 30, 2025, TO
AUGUST 31, 2026, AND AUTHORIZING AND DIRECTING THE CITY

MANAGER TO EXECUTE SAME
WHEREAS, on September 6, 2022, the City and Consultant executed a contract with Vision Recycling for the grinding of wood waste and yard waste at the City Landfill, in an amount not to exceed $85,000 with an estimated completion date of June 30, 2025; and
WHEREAS, the First Amendment to Contract will add an additional $26,000.65 to cover the cost of two outstanding invoices and extend the contract term to August 31, 2026.

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 15301 Class 1, in that landfill gas support services involves the operation, repair, maintenance, and minor alteration of existing public structures (a landfill gas system) that involves negligible or no expansion of existing use.

2. The First Amendment to Contract between the City of Watsonville and Vision Recycling, a copy of which is attached hereto and incorporated herein by this reference, is hereby approved.

Page 218 of 1393 ends

Reso No. (CM)
Meeting Date: 060926
2 3. The City Manager is hereby authorized and directed to execute said First Amendment for and on behalf of the City of Watsonville with minor revisions that may be approved by the City Manager and the City Attorney.
********************************

Page 219 of 1393 ends

1 FIRST AMENDMENT TO CONSULTANT SERVICES CONTRACT

BETWEEN THE CITY OF WATSONVILLE

AND VISION RECYCLING
THIS FIRST AMENDMENT TO CONTRACT for consultant services is entered into by and between the City of Watsonville ("City") and Vision Recycling (“Consultant”) this day of ___________________________. The City and Consultant agree as follows:

RECITALS
WHEREAS, on September 6, 2022, the City and Consultant have previously executed a Consultant Service Contract for the Chipping and Grinding of Wood at the City Landfill; and
WHEREAS, the original contract was in the amount of $85,000 with an expiration date of June 30, 2025; and
WHEREAS, City Staff contacted 3 vendors, Community Service Tree, Gibson Resource Group, Inc., and Vision Recycling for services of chipping and grinding of wood; and
WHEREAS, Vision Recycling was selected for being readily available and not charging for equipment mobilization and providing the best cost for service; and WHEREAS, the First Amendment of the Contract for Consultant Services is in the best interest of the City of Watsonville.

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

Section 2 is hereby amended to add the following:

Page 220 of 1393 ends

2 "Section 2. Term of Contract. The term of the Contract shall be extended to August 31, 2026."
Section 4 is hereby amended to read:
"Section 4 and Exhibit "C" both entitled "Compensation" of the Contract, are hereby amended to provide an additional amount of compensation of Twenty-Six Thousand Dollars and Sixty-Five Cents ($26,000.65) for professional services.”
All other terms and conditions of the Contract dated September 6, 2022, as amended, shall remain in full force and effect.

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

CITY OF WATSONVILLE VISION RECYCLING
By___________________________ By______________________________ Tamara Vides, City Manager Adan Rodriguez, Vice President & General Manager
ATTEST:

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

By____________________________
Samantha W. Zutler, City Attorney

Page 221 of 1393 ends

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, June 23, 2026
TO: CITY COUNCIL
WRITTEN BY: ASSISTANT PARKS & COMMUNITY SERVICES DIRECTOR NEGRETE RECOMMENDED BY: PARKS & COMMUNITY SERVICES DIRECTOR CALUBAQUIB APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: RESOLUTION APPROVING FIRST AMENDMENT TO CONTRACT WITH

PAJARO VALLEY UNIFIED SCHOOL DISTRICT FOR PROVISION OF

PROGRAMMING
RECOMMENDATION:

Adopt a resolution approving First Amendment to Independent Contractor Agreement for nonconstruction services between the City of Watsonville and Pajaro Valley Unified School District (PVUSD) to provide afterschool and intersession programming through the Expanded Learning Opportunities Program (ELOP), adding to the scope of work, increasing compensation by $166,100.02 to a not to exceed amount of $713,100.02, and extending the contract term through August 13, 2026; appropriating $166,100.02 in revenue to the City’s Special Grants Fund [0260]; and authorizing and directing the City Manager to execute the same.

BACKGROUND:

On July 8, 2025, the city approved Resolution No. 191-25 (CM) approving an Independent Contractor Agreement for Non-Construction Services between the City of Watsonville and the Pajaro Valley Unified School District (PVSUD) to provide afterschool and intersession programming, at an amount not to exceed $547,000 for Fiscal Year 2025-2026.

DISCUSSION:

The term of the current agreement with Pajaro Valley Unified School District ends on June 30, 2026.

PVUSD wishes to extend this partnership to continue to support expanded after-school and summer intersession programming.

Page 222 of 1393 ends

2 This ongoing partnership demonstrates a mutual dedication to educational equity, student well-being, and strong community collaboration. It supports the delivery of a diverse range of high-quality programs that extend learning beyond the traditional school day. These include after-school sports that encourage physical fitness and teamwork, STEM programs that foster academic engagement and critical thinking, and Camp WOW, which offers enriching activities on Saturdays as well as during summer and intersession breaks. Together, these initiatives create safe, structured, and supportive spaces where students can grow academically, socially, and emotionally.

This First Amendment includes the following changes to the existing agreement:
 Extension of the agreement through August 13, 2026
 Adding additional programs to the scope, including:
o Additional Summer Intersessions for July (Camp WOW & Jr Guards) o Adjust staffing levels as needed to safely serve additional students o Provide daily Nucleus Science Programming for Middle School Summer School  Pajaro Valley Unified School District obligations are amended to increase compensation to the City by $166,100.02 to a total not to exceed amount of $713,100.02 CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

This action 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.

STRATEGIC PLAN:

Community Engagement & Well-being – These programs directly foster social-emotional learning, physical activity, and academic support, promoting youth well-being and offering families meaningful ways to engage with their community.

Public Safety – Providing structured, supervised environments during out-of-school hours reduces the likelihood of youth involvement in risky or unsupervised activities, promoting overall community safety.

FINANCIAL IMPACT:

All costs associated with these services will be paid entirely by PVUSD. Revenue and expenditures will be applied as follows:
 Revenue:
o 150-683-5249-00000: $15,098
o 260-337-5890-09050: $151,002.02
 Expenses:
o 260-337-7011-09050: $12,599.86
o 260-337-7021-09050: $108,219.86
o 260-337-7533-09050: $30,182.30

Page 223 of 1393 ends

3 ALTERNATIVE ACTION:

The Council could not approve this Resolution, and programming services with PVUSD would cease effective June 30, 2026.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

Page 224 of 1393 ends

Reso No. (CM)
Reference: Reso No. 191-25 (Amend)
Meeting Date: 060926 SWZ ______ TV ______ PCS ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING FIRST AMENDMENT TO INDEPENDENT

CONTRACTOR AGREEMENT FOR NON-CONSTRUCTION SERVICES

BETWEEN THE CITY OF WATSONVILLE AND PAJARO VALLEY

UNIFIED SCHOOL DISTRICT (PVUSD), TO PROVIDE AFTERSCHOOL AND INTERSESSION PROGRAMMING THROUGH THE DISTRICT’S

EXPANDED LEARNING OPPORTUNITIES PROGRAM, ADDING TO THE
SCOPE OF WORK, INCREASING COMPENSATION BY $166,100.02, TO A NOT TO EXCEED AMOUNT OF $713,100.02, AND EXTENDING THE CONTRACT TERM THROUGH AUGUST 13, 2026; APPROPRIATING
$166,100.02 IN REVENUE TO THE SPECIAL GRANTS FUND [0260];

AND AUTHORIZING AND DIRECTING THE CITY MANAGER TO

EXECUTE SAME
WHEREAS, on July 8, 2025, the City Council adopted Resolution No. 191-25 (CM) approving Independent Contractor Agreement for Non-Construction Services with PVUSD to provide afterschool and intersession programming for students through the District’s Expanded Learning Opportunities Program for FY 2025-2026, in an amount not to exceed $547,000; and
WHEREAS, PVUSD has requested to amend the original Agreement to add to the scope of work, increase compensation, in the amount of $166,100.02 for a cumulative contract amount not to exceed $713,100.02; and extend the contract term from June 30, 2026 to August 13, 2026.

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

1. Adopting a Resolution approving a First Amendment with Pajaro Valley Unified School District 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.

Page 225 of 1393 ends

Reso No. (CM)
Reference: Reso No. 191-25 (Amend)
Meeting Date: 060926
2 2. This First Amendment to Agreement between City of Watsonville and PVUSD, a copy of which is attached hereto and incorporated herein by this reference, is hereby approved.

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

4. That the budget appropriation of $166,100.02 to the Special Grants Fund [0260] is hereby authorized.
**************************************

Page 226 of 1393 ends

2025-2026
PVUSD: Expanded Learning Community Partner
**Addendum No. 1 to Independent Contractor Agreement
City of Watsonville 2025–26 School Year**
This Addendum is attached to and incorporated into the Independent Contractor Agreement for Non-Construction Services between Pajaro Valley Unified School District (“District”) and City of Watsonville (“Contractor”), originally dated July 1, 2025. Original Purchase Order:

PO26-00908
Purpose of Addendum
The purpose of this Addendum is to revise the Scope of Services and Compensation to reflect an increase of services for onsite Nucleus Science programming at multiple locations programming These expanded services are required to meet increased demand for after-school and intersession enrichment under the Expanded Learning Opportunities Program (ELO-P).

Revised Scope of Services
In addition to the services outlined in Exhibit A of the original Agreement, Contractor will:
● Provide weekly Nucleus Science programming at Mar Vista After School Program during the school year
● Provide daily Nucleus Science programming for Middle School Summer School ● Additional Summer Intersessions for July (Camp WOW & Jr Guards) ● Adjust staffing levels as needed to safely serve additional students. ● Continue to maintain attendance, reporting, safety procedures, and SEL-aligned enrichment consistent with the original Agreement.

All services remain aligned with the ELO-P statute, ASES/21st CCLC requirements, and PVUSD Expanded Learning Program Plan.

Page 227 of 1393 ends

Revised Compensation
Section 3 of the Agreement is amended as follows:

The total contract amount is increased by $166,100.02 to support expanded after-school and summer intersession programming opportunities.

June Services: $22,451.99
These services to be invoiced within the 25-26 school year, before June 30, 2026.

July Services: $143,648.03
These services to be invoiced in the 26-27 school year, after July 1, 2026. On a separate PO from June dates.

The revised total Agreement amount shall not exceed:
$713,100.02 (total amount of new contract)
($547,000.000 + $166,100.02)
No general funds will be used. All services are funded through ASES, 21st Century Community Learning Centers, and ELO-P.

All Other Terms Unchanged
All other terms, conditions, and provisions of the Agreement remain in full force and effect.

This Agreement may be terminated by either Party upon thirty (30) days written notice. The District may terminate immediately for cause, including failure to perform services in accordance with the Agreement.

Prepared by:

Jennifer Littleton Bruno
Executive Director, Expanded Learning
Pajaro Valley Unified School District
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first written above.

Page 228 of 1393 ends

DISTRICT
Pajaro Valley Unified School District
By: ________________________________
Name: Gerardo Castillo
Title: PVUSD CBO
Date: 5/20/2026
____________________________

CONTRACTOR
Contractor Name Here
By: ________________________________
Name:

Title:

Date: ____________________________

Page 229 of 1393 ends

ACTION FOR GRANT FUNDING FOR IMPLEMENTATION OF THE

ADELANTE WATSONVILLE PROGRAM
RECOMMENDATION:

Adopt a resolution approving the First Amendment to the contract with Ecology Action of Santa Cruz for California Air Resources Board (CARB) Clean Mobility in Schools (CMIS) & Sustainable Transportation Equity Program (STEP) grant funds for the implementation of the Adelante Watsonville Program.

BACKGROUND:

On March 25, 2025, Council approved Resolution No. 81-25 (CM), accepting California Air Resources Board (CARB) Clean Mobility in Schools (CMIS) & Sustainable Transportation Equity Program (STEP) grant funds, in the amount of $3,238,235 for implementation of the Watsonville Adelante Program with Ecology Action. The city agreed to use this CARB funding for the following:
 Purchase of an electric street sweeper small enough to clean bike lanes.  Pay a portion of the Safe Routes to Downtown Watsonville project which will provide pedestrian and bicycle improvements around several schools within the City.  Assist with construction of sidewalk on the east side of Freedom Blvd between Green Valley Rd and Airport Blvd.
 Fund improvements to the City’s slough trail system.

Additional funding from the grant allows city staff to work with Ecology Action and other parties and participate in the following programs:

Page 230 of 1393 ends

2  EV Carshare – Work with Miocar staff to plan and facilitate the implementation of EV carshare to serve Watsonville residents.
 Ebikeshare - Work with others to plan and facilitate the implementation of ebikeshare to serve all Watsonville residents.

DISCUSSION:

This First Amendment is to address the following changes.

1. Redistribute existing grant funds as summarized below. The Original Contract allocated funding as follows:

Sub Task Original Redistributed

5.1 Preconstruction Work
Slough Trail Repair $0 $150,000

5.3 Construction, Project Oversight & Construction
Slough Trail Maintenance $290,373 $256,112
Landscaping, Benches, Signage $200,000 $193,020
Slough Trail Repairs $929,862 $821,103
TOTAL $1,420,235 $1,420,235

2. Identify other funds. The Air Resources Board has asked Ecology Action to revise the existing agreement to identify other funds the city secured for the Safe Routes to Downtown Watsonville project. CARB refers to them as Local Match. They include the following:

Sub Task 5.1 – Preconstruction Work:
 Active Transportation Program (ATP) $507,000
 Regional State Transportation Program Exchange (RSTPX) $100,000  Local $31,000
 Total $638,000
Sub Task 5.3 Construction, Project Oversight & Construction:
 Active Transportation Program (ATP) $5,825,000
 State Transportation Improvement Program (STIP) $896,000  Regional State Transportation Program Exchange (RSTPX) $142,000  Local $162,000
 Total $7,025,000

3. Reporting and invoicing. Ecology Action requests that the agreement be revised to call for the City to provide quarterly reports to track the resource contributions, such as the local match, and quarterly invoices for work being completed.

Page 231 of 1393 ends

3 4. Remove ebikeshare. Ecology Action requests the agreement be revised and that Task 4: BCycle ebikeshare be removed as BCycle will not be providing ebike services within the city during the term of this contract. In its place, Ecology Action has organized an alternative bikeshare program.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

Approval of an amendment to a professional services agreement is not a project pursuant to the California Environmental Quality Act (CEQA) because it can be seen with certainty based on substantial evidence in the record that the approval constitutes a government fiscal activity that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. (CEQA Guidelines section 15378(b)(4).

Further, the approval 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 due to the scheduled purchase of an electric street sweeper, and through the maintenance and repair of existing city trails and public sidewalks. Therefore, any CEQA analysis would be speculative at this time. Approval of the agreement and subsequent amendments is an administrative action involving no physical change in the environment and does not enable or otherwise affect development. Therefore, it can be seen with certainty that there is no possibility that the agreement and amendment approval may have a significant effect on the environment.

STRATEGIC PLAN:

Infrastructure & Environment
Public Safety
FINANCIAL IMPACT:

There will be no fiscal impact, as this amendment does not modify the agreement amount but only redistributes allocations within the existing grant tasks.

ALTERNATIVE ACTION:

The council may choose not to approve the First Amendment to the existing agreement with Ecology Action.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

Page 232 of 1393 ends

Reso No. ______ (CM)
Reference: Reso No. 81-25 (Amend)
Meeting Date: 060926 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO. __________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

APPROVING FIRST AMENDMENT TO CONTRACT BETWEEN THE CITY

OF WATSONVILLE AND ECOLOGY ACTION OF SANTA CRUZ, TO AMEND

THE SCOPE OF WORK AND THE BUDGET AND TIMELINE FOR THE

ADELANTE WATSONVILLE PROGRAM, WITH NO CHANGE TO THE

GRANT FUNDING AMOUNT AND DIRECT CITY MANAGER TO EXECUTE SAME
WHEREAS, on March 25, 2025, the Council adopted Resolution No. 81-25 accepting the California Air Resources Board (CARB) Clean Mobility in Schools (CMIS) & Sustainable Transportation Equity Program (STEP) Grant Program funds in the amount of $3,238,235, to be used for City implementation of the Watsonville Adelante Program. The CARB Grant Agreement was set to expire on May 31, 2027; and WHEREAS, on April 24, 2025, the City and Ecology Action of Santa Cruz entered into an Agreement for the implementation of the Watsonville Adelante Program; and WHEREAS, the agreement is being amended to reallocate funding, identify match funds, clarify reporting and invoicing requirements and make changes to the scope; and WHEREAS, this First Amendment to Contract will not change the grant funding amount.

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

1. Approval of an amendment to a professional services agreement is not a project pursuant to the California Environmental Quality Act (CEQA) because it can be seen with certainty based on substantial evidence in the record that the approval constitutes a government fiscal activity that does not involve any commitment to any

Page 233 of 1393 ends

Reso No. ______ (CM)
Reference: Reso No. 81-25 (Amend)
Meeting Date: 060926
2 specific project that may result in a potentially significant physical impact on the environment. (CEQA Guidelines section 15378(b)(4).

Approval of the agreement and subsequent amendments is an administrative action involving no physical change in the environment and does not enable or otherwise affect development. Therefore, it can be seen with certainty that there is no possibility that the agreement and amendment approval may have a significant effect on the environment.

2. That the First Amendment to Contract between the City of Watsonville and Ecology Action, for the Adelante Watsonville Program, a copy of which is attached hereto and incorporated herein by this reference, is hereby approved.

3. That the City Manager be and is hereby authorized and directed to execute said First 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. ********************************

Page 234 of 1393 ends

AMENDMENT #1 TO AGREEMENT

BETWEEN THE CITY OF WATSONVILLE & ECOLOGY ACTION OF SANTA CRUZ 08 May 2026

RECITALS
WHEREAS, on April 24, 2025, the City of Watsonville ("City") and Ecology Action of Santa Cruz ("EA") entered into an agreement for implementation of the ¡Adelante Watsonville! project funded through the California Air Resources Board (CARB);
WHEREAS, the Agreement includes a Budget Exhibit identifying funding allocations by task & subtask; WHEREAS, the City has requested a reallocation of Fifty Thousand Dollars ($50,000) within Task 5 (City of Watsonville Trails Project), moving funds from Subtask 5.3 (Construction, including $9,261 from Slough Trail Maintenance, $6,980 from Landscaping/Benches/Signage and $33,759 from Slough Trail Repairs) to Subtask 5.1 (Pre-construction) to address increased pre-construction needs; WHEREAS, the City further wishes to move a total of One Hundred Thousand Dollars ($100,000), including $25,000 from Slough Maintenance Subtask 5.3 and $75,000 from Slough Trails Repairs Subtask 5.3 to Slough Trails Repairs Subtask 5.1;
WHEREAS, the CARB Grant Agreement did not identify funding secured by the City that would be used to match grant funds, and EA has requested that City local match be identified; WHEREAS, EA has requested revisions to the Scope of Work to delete Task 4: BCycle ebikeshare, as such services will not be provided during the term of this Agreement; WHEREAS, these amendments do not alter the total contract amount, project scope (as amended), deliverables, or project timeline, and CARB has indicated the reallocations may be implemented without formal amendment to the CARB grant agreement.

NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

1. Scope of Work Amendment.

Task 4: BCycle ebikeshare is hereby deleted from the City of Watsonville Scope of Work.

2. Budget Amendment.

Exhibit B (Budget and Timeline) to the Agreement is hereby replaced in its entirety with a revised City of Watsonville Budget Breakdown that reallocates $50,000 and $100,000 from Subtask 5.3 to Subtask

5.1 and identifies City of Watsonville local match contributions. The revised Budget Breakdown is incorporated by reference as Exhibit 1.

3. No Other Modifications.

Docusign Envelope ID: 111A1588-B74F-80A9-81D1-0D2FC10B41FC

Page 235 of 1393 ends

Except as expressly modified herein, all other terms and conditions of the Agreement remain in full force and effect.

CITY OF WATSONVILLE ECOLOGY ACTION OF SANTA CRUZ
By:__________________Date:__________ By:__________________Date:_______ Tamara Vides, City Manager Chuck Tremper, COO
ATTEST:

By:__________________Date:__________
Irwin I. Ortiz, City Cleark
APPROVED AS TO FORM:

By:__________________Date:__________
Samantha W. Zutler, City Attorney
Docusign Envelope ID: 111A1588-B74F-80A9-81D1-0D2FC10B41FC 5/8/2026

Page 236 of 1393 ends

EXHIBIT 1
AMENDMENT #1 TO AGREEMENT
The revised Watsonville Budget Breakdown shall be shown below:

Docusign Envelope ID: 111A1588-B74F-80A9-81D1-0D2FC10B41FC

Page 237 of 1393 ends

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, June 23, 2026
TO: CITY COUNCIL
WRITTEN BY: Project Manager Gomez
RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR GREEN APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: APPROVE A FIRST AMENDMENT TO THE PROFESSIONAL SERVICES

CONTRACT WITH RRM DESIGN GROUP FOR THE SAFE ROUTES TO
DOWNTOWN WATSONVILLE PROJECT, NO. 15087, TO AMEND SCOPE OF SERVICES, ADD CENTRAL COAST TRANSPORTATION, LUMOS INC., AND OCMI, INC., AS SUBCONSULTAN
RECOMMENDATION:

Adopt a resolution approving a First Amendment to the Professional Services Agreement with RRM Design Group to:

1. Revise the Scope of Services for the Safe Routes to Downtown Watsonville Project (SR2D Project), No. 15087;

2. Add Central Coast Transportation, Lumos INC., and OCMI, Inc. as subconsultants;

3. Authorize and direct the City Manager to execute the same.

BACKGROUND:

On February 10, 2026, Council adopted Resolution No. 23-26 (CM), awarding a Professional Services Contract (PSC) to RRM Design Group to provide design services for the Safe Routes to Downtown Watsonville (SR2D) Project, No. 15087, in an amount not to exceed $636,170. This amount includes services that will be provided by several subconsultants. However, at the time of Council approval of the PSC, these subconsultants were not identified in the contract documentation.

DISCUSSION:

A portion of RRM’s scope of work will be provided by the following subconsultants:
 Central Coast Transportation for Traffic Engineering

Page 238 of 1393 ends

2  Lumos Inc. for Orthographic Photos
 OCMI, Inc. For Construction Cost Estimating
The purpose of this amendment is to revise the scope of services to clearly identify that these subconsultants will be performing this work.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

The SR2D Project qualifies as Categorically Exempt under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15301 (c) Class 1 Existing Facilities. The Public Works Department has filed a Notice of Exemption (NOE) for both the IN and NI components of the project.

Further, the approval of a First Amendment to the PSC for design services with RRM 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.

STRATEGIC PLAN:

The SR2D Project supports the following Strategic Plan goals:

Infrastructure & Environment
Public Safety
FINANCIAL IMPACT:

Since the costs for these subconsultants were included in the original contract amount of $636,170, there is no increase in the total compensation with this amendment.

ALTERNATIVE ACTION:

Council could choose not to approve this amendment to the PSC. However, such an action would delay the project and jeopardize the ATP Cycle 6 funds that the City has been awarded.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

Page 239 of 1393 ends

Reso No. (CM)
Meeting Date: 062326 1
RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING A FIRST AMENDMENT TO THE

PROFESSIONAL SERVICES CONTRACT WITH RRM DESIGN GROUP,

A CALIFORNIA CORPORATION, FOR THE SAFE ROUTES TO
DOWNTOWN WATSONVILLE PROJECT, NO. 15087, AMENDING THE

SCOPE OF SERVICES, BY ADDING CENTRAL COAST
TRANSPORTATION, LUMOS INC., AND OCMI, INC., AS
SUBCONSULTANTS; AND AUTHORIZING AND DIRECTING THE CITY

MANAGER TO EXECUTE SAME
WHEREAS, On February 10, 2026, Council adopted Resolution No. 23-26 (CM), awarding a Professional Services Contract (PSC) to RRM Design Group to provide design services for the Safe Routes to Downtown Watsonville (SR2D) Project, No. 15087; and WHEREAS, the City and Consultant executed said contract on February 25, 2026, in the amount of $636,170, which includes services that will be provided by several subconsultants; and
WHEREAS, a portion of RRM’s scope of work will be provided by the following subconsultants: Central Coast Transportation for Traffic Engineering, Lumos Inc. for Orthographic Photos, and OCMI, Inc. for Construction Cost Estimating, and the City desires to revise the scope of services to clearly identify that these subconsultants will be performing this work; and
WHEREAS, this First Amendment to the PSC with RRM 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. The Safe Routes to Downtown Watsonville Project is Categorically Exempt under CEQA Guidelines Section 15301 (c) Class 1 Existing Facilities. Staff filed a Notice of Exemption for both the Infrastructure and Non-Infrastructure components of the Project

Page 240 of 1393 ends

Reso No. (CM)
Meeting Date: 062326 2
with the Santa Cruz County Clerk. Further, the approval of a First Amendment to the PSC for design services with RRM 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. The First Amendment to the Professional Services Contract between the City of Watsonville and RRM Design Group, for design services, a copy of which is attached herein by this reference, is hereby approved.

3. That the City Manager is hereby authorized and directed to execute said First Amendment to 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. **************************************

Page 241 of 1393 ends

1 FIRST AMENDMENT TO CONSULTANT SERVICES CONTRACT

BETWEEN THE CITY OF WATSONVILLE

AND RRM DESIGN GROUP
THIS FIRST AMENDMENT TO CONTRACT for consultant services is entered into by and between the City of Watsonville ("City") and RRM Design Group (“Consultant”) this day of ___________________________. The City and Consultant agree as follows:

RECITALS
WHEREAS, on February 10, 2026, the City Council adopted Resolution No. 23-26 (CM) approving professional services contract with RRM Design Group for the Safe Routes to Downtown Watsonville Project, No. 15087; and
WHEREAS, the original contract was in the amount of $636,170 with an expiration date of June 30, 2028; and
WHEREAS, in June 2024, the City released a Request for Qualification Statements (RFQ) asking for qualified consultants to assist the City with On-Call Professional Engineering Services including Staff Augmentation, Design, Construction Management and Inspection, with a submittal deadline of July 11, 2024; and WHEREAS, a total of 24 firms submitted a Statement of Qualifications (SOQ), which was reviewed by a staff selection committee, and a list of qualified firms was developed; and
WHEREAS, RRM Design Group was one of the qualified firms capable of providing design services and due to their experience with similar projects of size and scope involving safety improvements and state grant funding, and City staff requested a proposal; and
Docusign Envelope ID: 9ACBC5FE-3068-8348-81C3-3AB748612DCA

Page 242 of 1393 ends

2 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 professional services contract to provide design services for the Safer Routes to Downtown Watsonville Project, No. 15087; and WHEREAS, Consultant has requested incorporation of subconsultants services into the Contract performed by 1) Central Coast Transportation for traffic engineering services, 2) Lumos Inc. for orthographic photos services, and 3) OCMI, Inc. for construction cost estimating services for the Safe Routes to Downtown Watsonville Project, No. 15087; and
WHEREAS, the First Amendment of the Contract for Consultant Services is in the best interest of the City of Watsonville.

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

Section 1 is hereby amended to add the following:
"Section 1. Scope of Services. In addition to the performance of those services specified in detail in Exhibit "A" of the Contract, Consultant shall perform the additional services specified in detail in Exhibit "1," entitled FIRST AMENDMENT TO SCOPE OF SERVICES, which is attached hereto and incorporated herein."
All other terms and conditions of the Contract dated February 25, 2026, as amended, shall remain in full force and effect.

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

Docusign Envelope ID: 9ACBC5FE-3068-8348-81C3-3AB748612DCA

Page 243 of 1393 ends

3 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

RRM DESIGN GROUP
By___________________________
Mike Sherrod, ASLA, PLA, LEED AP
Managing Partner
Docusign Envelope ID: 9ACBC5FE-3068-8348-81C3-3AB748612DCA

Page 244 of 1393 ends

EXHIBIT "1"

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

As described in the amendment proposal dated May 22, 2026, from RRM Design Group to City of Watsonville regarding the Safe Routes to Downtown Watsonville Project, No. 15087.

See attachment labeled EXHIBIT “1”.

Docusign Envelope ID: 9ACBC5FE-3068-8348-81C3-3AB748612DCA

Page 245 of 1393 ends

Contract Amendment No. 01
Date:

May 22, 2026
Client:

City of Watsonville
Subject:

Subconsultants
Project Name:

Watsonville Safe Routes to Downtown
Project Number:
2443-01-MO26
RRM Design Group, a California Corporation ("RRM Design Group"), has entered into an agreement with the City of Watsonville (the "Client") dated February 25, 2026 (the "Prime Agreement") for the project:

Watsonville Safe Routes to Downtown (the "Project"). This Contract Amendment authorized by the Client is subject to the Terms and Conditions of the Prime Agreement.

I. Description of Work to be Performed
On May 20, 2026, Leon Gomez from the City of Watsonville requested RRM Design Group (RRM) put together a contract amendment for City Council to approve the subconsultants on the Watsonville Safe Routes to Downtown project. The original contract includes the subconsultant fees, so there are no additional tasks or fees as a part of this contract amendment. Exhibit A includes RRM’s firm profile, RRM’s organizational chart, and the subconsultant’s Certificates of Insurance which comply with the Prime Agreement requirements.

II. Compensation
Total Amendment 01 $ 0
Total Current Contract $ 636,170

Total Amended Contract $ 636,170
EXHIBIT "1"
pg. 1 of 5
Docusign Envelope ID: 9ACBC5FE-3068-8348-81C3-3AB748612DCA

Page 246 of 1393 ends

Watsonville
Safe Routes to
Downtown Project
•RRM Firm Profile
•Organization Chart
•Subconsultants Certificate of
Insurance
EXHIBIT "1"
pg. 2 of 5
Docusign Envelope ID: 9ACBC5FE-3068-8348-81C3-3AB748612DCA EXHIBIT A Page 247 of 1393
2 We love being a 100% employee-owned design firm,
and we plan on doing this for the next 50 years
All of us at RRM thrive on our passion for crafting enjoyable environments, a commitment that has fueled our success for fifty years. From the inception of our journey to our current state of expansion, our team of architects, landscape architects, engineers, surveyors, and planners collaborates closely with clients to shape our communities. Whether the project is public or private, commercial or residential, we excel in attentive listening, thoughtful design, and timely, budget-conscious delivery—values we’ve upheld since our establishment in 1974.

We want to be known as friendly, helpful, and
collaborative design professionals
We feel that this client quote sums up the experience of working with RRM:
“RRM was equally attentive and responsive to issues both large and small, real and imagined. I was consistently impressed with their calm, informed manner and attention to details.”
We’re doing an
incredible amount
of work:
2,300+
RRM projects in
the last decade
Our clients enjoy the
experience of working
with us:

8.5 NPS
(Overall Net Promoter
Score) well above AEC
industry average of 7.2
Our employees like their
careers at RRM:
“Best Firm
to Work for”
2022, 2023, 2024, 2025
- Zweig Group
7 RRM Offices
Our headquarters are located at:
3765 South Higuera St., Ste. 102
San Luis Obispo, CA 93401
p: (805) 543-1794
Lead office for this project:
32332 Camino Capistrano,
Ste 205
San Juan Capistrano,
CA 93401
p: (949) 361-7950
www.rrmdesign.com
Mike Sherrod, ASLA, PLA, LEED AP |
Principal-in-Charge
(949) 347-5587
[email protected]
All offices: San Luis Obispo, Santa
Barbara, San Juan Capistrano,
San Leandro, Ventura, San Diego, and
Seattle
200+ Employees
in 6 Disciplines
• Architects
• Civil Engineers
• Landscape Architects
• Planners & Urban Designers
• Structural Engineers
• Surveyors
100% EmployeeOwned Firm
RRM Design Group is a California
corporation and a 100% employeeowned company (ESOP), incorporated November 26, 1974
RRM Design Group Firm Profile
50 Years of Creating Environments People Enjoy
RRM by the Numbers
EXHIBIT "1"
pg. 3 of 5
Docusign Envelope ID: 9ACBC5FE-3068-8348-81C3-3AB748612DCA

Page 248 of 1393 ends

3 Assembling Our Team For The City of Watsonville
Hiring our company means investing in unparalleled expertise, exceptional service, and innovative solutions tailored to your specific needs. We bring a wealth of experience and a proven track record of success, ensuring that your projects are executed with precision and efficiency. Our dedicated team of professionals is committed to delivering outstanding results, leveraging the latest technologies and best practices to drive your business forward. We pride ourselves on our customercentric approach, building strong relationships and understanding your unique challenges to provide customized solutions that exceed expectations. By choosing us, you gain a reliable partner dedicated to your growth and success.

Mike Sherrod

ASLA, PLA, LEED AP
Role: Principal-in-Charge
Managing Principal
Rachael Guraydin
PLA
Role: Project Manager
Senior Landscape Architect
Julian Simeoni, PLA
Role: Quality Control
Specialist
Principal Landscape Architect
Brian Hellwig, LS
Role: Surveyor
Supervisor of Surveying
Noah Walters, PE
Role: Civil
Engineering
Project Manager
Subconsultants
Civil Engineering QA/QC Surveying
Project Lead | Landscape Architecture
RRM Design Group
Traffic Engineering Orthographic Photos Construction Cost Estimating Lumos Inc. OCMI, Inc.

Central Coast
Transportation
EXHIBIT "1"
pg. 4 of 5
Docusign Envelope ID: 9ACBC5FE-3068-8348-81C3-3AB748612DCA

Page 249 of 1393 ends

EXHIBIT "1"
pg. 5 of 5
Docusign Envelope ID: 9ACBC5FE-3068-8348-81C3-3AB748612DCA

Page 250 of 1393 ends

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, June 23, 2026
TO: CITY COUNCIL
WRITTEN BY: SOLID WASTE DIVISION MANAGER SMITH
RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR GREEN APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: AWARD CONTRACT TO SWT ENGINEERING, INC., FOR LANDFILL

ENGINEERING DESIGN AND CONSULTING SERVICES, IN AN AMOUNT NOT TO EXCEED $225,000 FOR FY2026/2027 THROUGH 2028/2029 RECOMMENDATION:

Staff recommend the City Council adopt a resolution awarding a contract to SWT Engineering, Inc. for Landfill Engineering Design and Consulting Services, in an amount not to exceed $225,000 for FY2026/2027 through FY2028/2029 and authorize the City Manager to execute the same.

BACKGROUND:

On March 17, 2026, the city released a Request for Qualification Statements (RFQ) for on-call Landfill Engineering Services, with a submittal deadline of April 17, 2026, at 4:00 P.M. A total of 7 responses were received and reviewed. Staff have developed a list of qualified consulting firms and is ready to issue a contract.

DISCUSSION:

The Solid Waste Utility Enterprise is responsible for the collection, recycling, and disposal of the City’s Solid Waste. This responsibility includes collection of municipal solid waste, organic waste, recycling collection, operation of a public drop-off, and household hazardous waste collection center for community members, and maintaining and operating a solid waste landfill.

The city has owned and operated a landfill for over 60 years. Part of the responsibility of managing the landfill includes managing sophisticated environmental control systems that include stormwater runoff, leachate containment and disposal, fill sequences, volumetric analysis, and compaction surveys. SWT

Page 251 of 1393 ends

2 Engineers has a history with the city and designed cell 3 closure and cell 4 opening, including managing both projects’ construction. The landfill needs a stormwater basin for the containment of leachate, especially during the rainy season, including as-needed engineering support for managing the landfill.

SWT Engineering is on the list of qualified On-Call Landfill Engineering Services, and was selected as the most qualified to provide the following specific scope of services:
• Stormwater Basin design and construction oversight
• PSC Push and Observation
• Landfill Industrial Stormwater support
• Landfill Operations support
• Survey/Annual Aerial Topography
• Other related as-needed landfill engineering services Staff requested a proposal from SWT Engineering for the above Landfill Engineering services scope items.

They provided a proposal with a not-to-exceed cost of $225,000. Staff recommends that Council approve a contract with SWT in the not-to-exceed amount for a total contract term of 3 fiscal years. Services will only be performed by direction and authorization from City staff within the limits established by the contract.

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 adopting a Resolution awarding a design contract to SWT Engineering Inc. for Landfill Engineering Design and Consulting Services does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and if a “project,” is exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.

STRATEGIC PLAN:

This project is consistent with the following Strategic Plan Goal(s).

Infrastructure & Environment
FINANCIAL IMPACT:

This contract for landfill engineering design and consulting services, in the amount of $225,000 is to be charged to the budget account 0740-575-7361, and has sufficient funds for fiscal years 26/27 through 28/29

Page 252 of 1393 ends

3 ALTERNATIVE ACTION:

No reasonable alternatives are known at this time. Staff does not have the landfill engineering knowledge to complete this scope of work in-house.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

Page 253 of 1393 ends

Reso No. (CM)
Meeting Date: 062326
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE AWARDING PROFESSIONAL SERVICES CONTRACT
TO SWT ENGINEERS, INC., A CORPORATION, FOR LANDFILL

ENGINEERING DESIGN AND CONSULTING SERVICES, IN AN AMOUNT NOT TO EXCEED $225,000.00 FOR FY2026-2027 THROUGH FY2028- 2029; 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 March 17, 2026, asking for qualified consultants to assist the City for Landfill Engineering Design and Consulting Services; and

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

Page 254 of 1393 ends

Reso No. (CM)
Meeting Date: 062326 2
WHEREAS, the deadline for submittal of Request for Statement of Qualifications was April 17,2026; and
WHEREAS, a total of 7 firms submitted qualification statements; these statements were reviewed by City staff and a list was developed; and WHEREAS, the City Manager has recommended that the proposal from SWT Engineering, Inc., in an amount not to exceed $225,000.00, be accepted as the best response.

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

1. This action is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15378(b)(5), in that adopting a Resolution awarding contract to SWT Engineering Inc. for the Landfill Engineering Design and Consulting Services does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and if a “project,” is exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.

2. The Council awards a contract to SWT Engineering Inc., for Landfill Engineering Design and Consulting Services, in an amount not to exceed $225,000.00 for FY2026-2027 through FY2028-2029.

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

Page 255 of 1393 ends

Reso No. (CM)
Meeting Date: 062326 3

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.
************************************

Page 256 of 1393 ends

Consultant Contract Architects or Engineers w/employees Page 1 of 9

CONTRACT FOR CONSULTANT SERVICES BETWEEN
THE CITY OF WATSONVILLE AND SWT ENGINEERING, INC.

THIS CONTRACT, is made and entered into this ______________________, by and between the City of Watsonville, a municipal corporation, hereinafter called “City,” and SWT Engineering, 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.

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 July 1, 2026 to June 30, 2029, inclusive.

SECTION 3. SCHEDULE OF PERFORMANCE. The services of Consultant are to be completed according to the schedule set out in Exhibit "B," entitled "SCHEDULE OF PERFORMANCE," which is attached hereto and incorporated herein. Consultant will diligently proceed with the agreed Scope of Services and will provide such services in a timely manner in accordance with the "SCHEDULE OF PERFORMANCE." SECTION 4. COMPENSATION. The compensation to be paid to Consultant including both payment for professional services and reimbursable expenses as well as the rate and schedule of payment are set out in Exhibit "C" entitled "COMPENSATION," which is attached hereto and incorporated herein.

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

Page 257 of 1393 ends

Consultant Contract Architects or Engineers w/employees Page 2 of 9 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.

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

SECTION 9. INSURANCE.

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

B. Auto and Commercial General Liability Insurance. Consultant shall also maintain in full force and effect for the term of this Contract, automobile insurance and commercial general liability insurance with an insurance carrier satisfactory to City, which insurance shall include protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from any actual occurrence arising out of the performance of this Contract. The amounts of insurance shall not be less than the following:
(1) Commercial general liability insurance, or equivalent form, with a combined single limit of not less than $500,000.00 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.

Page 258 of 1393 ends

Consultant Contract Architects or Engineers w/employees Page 3 of 9 (2) Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $500,000.00 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 shall be paid in full for services performed and reimbursable expenses incurred to the date of termination.

Page 259 of 1393 ends

Consultant Contract Architects or Engineers w/employees Page 4 of 9 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.

Page 260 of 1393 ends

Consultant Contract Architects or Engineers w/employees Page 5 of 9 B. No member, officer, or employee of the City, during their tenure, or for one (1) year thereafter, shall have any interest, direct or indirect, in this Contract or the proceeds thereof and Consultant agrees not to allow, permit, grant, transfer, or otherwise do anything which will result in such member, officer, or employee of the City from having such interest.

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

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

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

CONSULTANT
SWT Engineering, Inc.
800-C South Rochester Avenue
Ontario, CA 91761
(909) 390-1328
SECTION 22. EXHIBITS:

Exhibit A: Scope of Services
Exhibit B: Schedule of Performance
Exhibit C: Compensation
///
///
///
///

Page 261 of 1393 ends

Consultant Contract Architects or Engineers w/employees Page 6 of 9 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
SWT ENGINEERING, INC.

BY_________________________________
Michael Cullinane, P.E., President

Page 262 of 1393 ends

Consultant Contract Architects or Engineers w/employees Page 7 of 9 EXHIBIT "A"

SCOPE OF SERVICES
The scope of services is as follows:

As written in the Staff Report by Solid Waste Division Manager Smith and attachment labeled Exhibit "A":

SWT will have the following scope of work:
• Emergency call-out by City personnel
• Stormwater Basin design and construction oversight
• PSC Push and Observation
• Stormwater support
• Landfill Operations support
• Survey/Annual Aerial Topography
Services will only be performed by direction and authorization from City staff. SWT will provide, at the request of the city, individual proposals and associated cost estimates as they occur and/or are needed and will continue to perform work only authorized. The contract will be for a period of 3 years with a cost not to exceed $225,000.

Page 263 of 1393 ends

Consultant Contract Architects or Engineers w/employees Page 8 of 9 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:

Work shall be completed by June 30, 2029.

Page 264 of 1393 ends

Consultant Contract Architects or Engineers w/employees Page 9 of 9 EXHIBIT “C”

COMPENSATION
a. Total Compensation. The total obligation of City under this Contract shall not exceed Two Hundred Twenty-Five Thousand Dollars ($225,000).
b. Basis for Payment. Payment(s) to Consultant for services performed under this Contract shall be made as follows and shall [not] include payment for reimbursable expenses:
c. Payment Request. Consultant shall submit a request for payment for services on a monthly basis by letter to Director, or said Director's designated representative. Such request for payment shall cover the preceding monthly period during the term hereof, shall note the City's purchase order number for this Contract, shall contain a detailed listing of the total number of items or tasks or hours for which payment is requested, the individual dates on which such services were rendered, and invoices for reimbursable expenses, if any. Upon receipt in the Office of Director of said payment request, Director shall cause payment to be initiated to Consultant for appropriate compensation.

Page 265 of 1393 ends

EXHIBIT A
pg. 1 of 62

Page 266 of 1393 ends

EXHIBIT A
pg. 2 of 62

Page 267 of 1393 ends

EXHIBIT A
pg. 3 of 62

Page 268 of 1393 ends

EXHIBIT A
pg. 4 of 62

Page 269 of 1393 ends

EXHIBIT A
pg. 5 of 62

Page 270 of 1393 ends

EXHIBIT A
pg. 6 of 62

Page 271 of 1393 ends

EXHIBIT A
pg. 7 of 62

Page 272 of 1393 ends

EXHIBIT A
pg. 8 of 62

Page 273 of 1393 ends

EXHIBIT A
pg. 9 of 62

Page 274 of 1393 ends

EXHIBIT A
pg. 10 of 62

Page 275 of 1393 ends

EXHIBIT A
pg. 11 of 62

Page 276 of 1393 ends

EXHIBIT A
pg. 12 of 62

Page 277 of 1393 ends

EXHIBIT A
pg. 13 of 62

Page 278 of 1393 ends

EXHIBIT A
pg. 14 of 62

Page 279 of 1393 ends

EXHIBIT A
pg. 15 of 62

Page 280 of 1393 ends

EXHIBIT A
pg. 16 of 62

Page 281 of 1393 ends

EXHIBIT A
pg. 17 of 62

Page 282 of 1393 ends

EXHIBIT A
pg. 18 of 62

Page 283 of 1393 ends

EXHIBIT A
pg. 19 of 62

Page 284 of 1393 ends

EXHIBIT A
pg. 20 of 62

Page 285 of 1393 ends

EXHIBIT A
pg. 21 of 62

Page 286 of 1393 ends

EXHIBIT A
pg. 22 of 62

Page 287 of 1393 ends

EXHIBIT A
pg. 23 of 62

Page 288 of 1393 ends

EXHIBIT A
pg. 24 of 62

Page 289 of 1393 ends

EXHIBIT A
pg. 25 of 62

Page 290 of 1393 ends

EXHIBIT A
pg. 26 of 62

Page 291 of 1393 ends

EXHIBIT A
pg. 27 of 62

Page 292 of 1393 ends

EXHIBIT A
pg. 28 of 62

Page 293 of 1393 ends

EXHIBIT A
pg. 29 of 62

Page 294 of 1393 ends

EXHIBIT A
pg. 30 of 62

Page 295 of 1393 ends

EXHIBIT A
pg. 31 of 62

Page 296 of 1393 ends

EXHIBIT A
pg. 32 of 62

Page 297 of 1393 ends

EXHIBIT A
pg. 33 of 62

Page 298 of 1393 ends

EXHIBIT A
pg. 34 of 62

Page 299 of 1393 ends

EXHIBIT A
pg. 35 of 62

Page 300 of 1393 ends

EXHIBIT A
pg. 36 of 62

Page 301 of 1393 ends

EXHIBIT A
pg. 37 of 62

Page 302 of 1393 ends

EXHIBIT A
pg. 38 of 62

Page 303 of 1393 ends

EXHIBIT A
pg. 39 of 62

Page 304 of 1393 ends

EXHIBIT A
pg. 40 of 62

Page 305 of 1393 ends

EXHIBIT A
pg. 41 of 62

Page 306 of 1393 ends

EXHIBIT A
pg. 42 of 62

Page 307 of 1393 ends

EXHIBIT A
pg. 43 of 62

Page 308 of 1393 ends

EXHIBIT A
pg. 44 of 62

Page 309 of 1393 ends

EXHIBIT A
pg. 45 of 62

Page 310 of 1393 ends

EXHIBIT A
pg. 46 of 62

Page 311 of 1393 ends

EXHIBIT A
pg. 47 of 62

Page 312 of 1393 ends

EXHIBIT A
pg. 48 of 62

Page 313 of 1393 ends

EXHIBIT A
pg. 49 of 62

Page 314 of 1393 ends

EXHIBIT A
pg. 50 of 62

Page 315 of 1393 ends

EXHIBIT A
pg. 51 of 62

Page 316 of 1393 ends

EXHIBIT A
pg. 52 of 62

Page 317 of 1393 ends

EXHIBIT A
pg. 53 of 62

Page 318 of 1393 ends

EXHIBIT A
pg. 54 of 62

Page 319 of 1393 ends

EXHIBIT A
pg. 55 of 62

Page 320 of 1393 ends

EXHIBIT A
pg. 56 of 62

Page 321 of 1393 ends

EXHIBIT A
pg. 57 of 62

Page 322 of 1393 ends

EXHIBIT A
pg. 58 of 62

Page 323 of 1393 ends

EXHIBIT A
pg. 59 of 62

Page 324 of 1393 ends

EXHIBIT A
pg. 60 of 62

Page 325 of 1393 ends

EXHIBIT A
pg. 61 of 62

Page 326 of 1393 ends

EXHIBIT A
pg. 62 of 62

Page 327 of 1393 ends

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, June 23, 2026
TO: CITY COUNCIL
WRITTEN BY: SOLID WASTE OPERATIONS SUPERVISOR BANDERAS
RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR GREEN APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: CONTRACT WITH STEARNS, CONRAD AND SCHMIDT CONSULTING ENGINEERS INC., DBA SCS FIELD SERVICES FOR LANDFILL GAS SUPPORT

SERVICES AT THE CITY LANDFILL FOR A THREE-YEAR PERIOD IN A TOTAL AMOUNT NOT TO EXCEED $300,000
RECOMMENDATION:

Staff recommend that the City Council adopt a resolution awarding a contract to Sterns, Conrad and Schmidt Consulting Engineers Inc., dba SCS Field Services, for landfill gas support services at the City landfill for a three-year period, for a total amount not to exceed $300,000.

BACKGROUND
On March 17, 2026, the city released a Request for Qualification Statements (RFQ) for on-call Landfill Engineering Services, with a submittal deadline of April 17, 2026, at 4:00 P.M. A total of 7 responses were received and reviewed. Staff developed a list of qualified consulting firms, and SCS Field Services is on the list of On-Call Landfill Engineering Services.

Staff requested a proposal from SCS Field Services for Landfill Gas Support Services and agreed to accept this proposal and enter into a contract.

DISCUSSION:

The Solid Waste Utility Enterprise is responsible for the collection, recycling, and disposal of the City’s Solid Waste. This responsibility includes the collection of municipal solid waste, organic waste collection from commercial entities, recycling collection, operation of a public drop-off, and household hazardous waste collection center for community members, and maintaining and operating a solid waste landfill.

Page 328 of 1393 ends

2 The City has owned and operated a landfill for over 60 years. Part of the responsibility of maintaining the landfill includes managing a sophisticated environmental control system that includes groundwater monitoring wells and landfill gas collection and monitoring systems. The landfill gas system requires regular maintenance and infrastructure upgrades in order to maintain compliance with numerous state and federal regulations. The proposed contract with SCS Field Services would include the following scope of work:
• Emergency call-out by City personnel
• Monitoring, testing and repair of landfill gas flare and collection system components  Repairing or replacing of non-functional landfill gas, condensate sump/pump components, laterals, and pipelines
• Repair of air or liquid transmission pipelines
• Excavation repair work
• As needed, sampling and testing
• Landfill gas extraction well design
Services will only be performed after direction and authorization from City staff. SCS will provide, at the request of the city, individual proposals and associated cost estimates as they occur and/or are needed and will perform no work until authorized. The contract will be for a period of three fiscal years.

SCS Field Services was selected through a Request for Qualifications process as the most qualified firm to perform these services from the list of on-call services. The firm has extensive experience in the region and has provided high-quality landfill gas services to both the City of Watsonville and the County of Santa Cruz for many years. The City and County manage their landfill gas in a coordinated partnership.

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 15301 Class 1, in that landfill gas support services involves the operation, repair, maintenance, and minor alteration of existing public structures (a landfill gas system) that involves negligible or no expansion of existing use.

STRATEGIC PLAN:

This project consists of the following Strategic Plan Goal(s):

Infrastructure & Environment
FINANCIAL IMPACT:

This contract for landfill gas support services in the amount of $300,000 is to be charged to the budget account 0741-576-7781, and has sufficient funds for fiscal years 26/27 through 28/29.

ALTERNATIVE ACTION:

Page 329 of 1393 ends

3 No reasonable alternatives are known at this time. If Council chooses to not approve contract with SCS Field Services, the City will not be in compliance with state and federal regulations.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

Page 330 of 1393 ends

Reso No. (CM)
Meeting Date: 060926 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE AWARDING A THREE-YEAR CONTRACT TO
STEARNS, CONRAD AND SCHMIDT CONSULTING ENGINEERS INC.

DBA SCS FIELD SERVICES, A CORPORATION, FOR ON-CALL

LANDFILL GAS SUPPORT SERVICES AT THE EXISTING CITY
LANDFILL FOR A TOTAL AMOUNT NOT TO EXCEED $300,000; 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 March 17, 2026, asking for qualified consultants to assist the City for On-call Landfill Engineering Services; and

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

Page 331 of 1393 ends

Reso No. (CM)
Meeting Date: 060926
2 WHEREAS, the deadline for submittal of Request for Statement of Qualifications was April 17, 2026, at 4:00 P.M.; and
WHEREAS, a total of 7 firms submitted qualification statements; these statements were reviewed by City staff and a list was developed; and WHEREAS, the City Manager has recommended that the proposal from Stearns, Conrad and Schmidt Consulting Engineers Inc. dba SCS Field Services, in an amount not to exceed $300,000, be accepted as the best response.

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

2. The Council awards a three-year contract to Stearns, Conrad and Schmidt Consulting Engineers Inc. dba SCS Field Services, for On-Call Landfill Gas Support Services, in an amount not to exceed $300,000.

3. That the Contract for Consultant Services between the City of Watsonville and Stearns, Conrad and Schmidt Consulting Engineers Inc. dba SCS Field Services, 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.

Page 332 of 1393 ends

Reso No. (CM)
Meeting Date: 060926
3 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.
**************************************

Page 333 of 1393 ends

Consultant Contract Architects or Engineers w/employees Page 1 of 9

CONTRACT FOR CONSULTANT SERVICES BETWEEN

THE CITY OF WATSONVILLE AND STERNS, CONRAD AND SCHMIDT
CONSULTING ENGINEERS, INC., DBA SCS FIELD SERVICES
THIS CONTRACT, is made and entered into this ______________________, by and between the City of Watsonville, a municipal corporation, hereinafter called “City,” and Sterns, Conrad and Schmidt Consulting Engineers, Inc., dba SCS Field Services, hereinafter called "Consultant."

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 July 1, 2026 to June 30, 2029, inclusive.

Page 334 of 1393 ends

SECTION 8. INDEMNIFICATION.

SECTION 9. INSURANCE.

Page 335 of 1393 ends

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.

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

Page 336 of 1393 ends

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 19. CONFLICT OF INTEREST.

Page 337 of 1393 ends

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

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

CONSULTANT
SCS Field Services
4730 Enterprise Way, Suite A
Modesto, CA 95356
(209) 545-8490
SECTION 22. EXHIBITS:

Exhibit A: Scope of Services
Exhibit B: Schedule of Performance
Exhibit C: Compensation
///
///
///
///

Page 338 of 1393 ends

Consultant Contract Architects or Engineers w/employees Page 6 of 9 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

STERNS, CONRAD AND SCHMIDT
CONSULTING ENGINEERS, INC., DBA

SCS FIELD SERVICES
BY_________________________________
Anton Svorinich, Vice President/
Northwest Region Manager

Page 339 of 1393 ends

Consultant Contract Architects or Engineers w/employees Page 7 of 9 EXHIBIT "A"

SCOPE OF SERVICES
The scope of services is as follows:

In the Staff Report written by Solid Waste Operations Supervisor Banderas and Statement of Qualifications labeled Exhibit “A”
The proposed contract with SCS Field Services would include the following scope of work:
• Emergency call-out by City personnel
• Monitoring, testing and repair of landfill gas flare and collection system components
Repairing or replacing of non-functional landfill gas, condensate sump/pump components, laterals, and pipelines
• Repair of air or liquid transmission pipelines
• Excavation repair work
• As needed, sampling and testing
• Landfill gas extraction well installation
• Confined space entry activity
Services will only be performed subsequent to direction and authorization from City staff. SCS will provide, at the request of the city, individual proposals and associated cost estimates as they occur and/or are needed and will perform no work until authorized. The contract will be for a period of three fiscal years.

Page 340 of 1393 ends

Consultant Contract Architects or Engineers w/employees Page 8 of 9 EXHIBIT “B”

Work shall be completed by June 30, 2029.

Page 341 of 1393 ends

Consultant Contract Architects or Engineers w/employees Page 9 of 9 EXHIBIT “C”

COMPENSATION
a. Total Compensation. The total obligation of City under this Contract shall not exceed Three Hundred Thousand Dollars ($300,000).
b. Basis for Payment. Payment(s) to Consultant for services performed under this Contract shall be made as follows and shall [not] include payment for reimbursable expenses:
c. Payment Request. Consultant shall submit a request for payment for services on a monthly basis by letter to Director, or said Director's designated representative. Such request for payment shall cover the preceding monthly period during the term hereof, shall note the City's purchase order number for this Contract, shall contain a detailed listing of the total number of items or tasks or hours for which payment is requested, the individual dates on which such services were rendered, and invoices for reimbursable expenses, if any. Upon receipt in the Office of Director of said payment request, Director shall cause payment to be initiated to Consultant for appropriate compensation.

See Attachment labeled Exhibit “C” for Fee Schedules

Page 342 of 1393 ends

EXHIBIT A
pg. 1 of 78

Page 343 of 1393 ends

EXHIBIT A
pg. 2 of 78

Page 344 of 1393 ends

EXHIBIT A
pg. 3 of 78

Page 345 of 1393 ends

EXHIBIT A
pg. 4 of 78

Page 346 of 1393 ends

EXHIBIT A
pg. 5 of 78

Page 347 of 1393 ends

EXHIBIT A
pg. 6 of 78

Page 348 of 1393 ends

EXHIBIT A
pg. 7 of 78

Page 349 of 1393 ends

EXHIBIT A
pg. 8 of 78

Page 350 of 1393 ends

EXHIBIT A
pg. 9 of 78

Page 351 of 1393 ends

EXHIBIT A
pg. 10 of 78

Page 352 of 1393 ends

EXHIBIT A
pg. 11 of 78

Page 353 of 1393 ends

EXHIBIT A
pg. 12 of 78

Page 354 of 1393 ends

EXHIBIT A
pg. 13 of 78

Page 355 of 1393 ends

EXHIBIT A
pg. 14 of 78

Page 356 of 1393 ends

EXHIBIT A
pg. 15 of 78

Page 357 of 1393 ends

EXHIBIT A
pg. 16 of 78

Page 358 of 1393 ends

EXHIBIT A
pg. 17 of 78

Page 359 of 1393 ends

EXHIBIT A
pg. 18 of 78

Page 360 of 1393 ends

EXHIBIT A
pg. 19 of 78

Page 361 of 1393 ends

EXHIBIT A
pg. 20 of 78

Page 362 of 1393 ends

EXHIBIT A
pg. 21 of 78

Page 363 of 1393 ends

EXHIBIT A
pg. 22 of 78

Page 364 of 1393 ends

EXHIBIT A
pg. 23 of 78

Page 365 of 1393 ends

EXHIBIT A
pg. 24 of 78

Page 366 of 1393 ends

EXHIBIT A
pg. 25 of 78

Page 367 of 1393 ends

EXHIBIT A
pg. 26 of 78

Page 368 of 1393 ends

EXHIBIT A
pg. 27 of 78

Page 369 of 1393 ends

EXHIBIT A
pg. 28 of 78

Page 370 of 1393 ends

EXHIBIT A
pg. 29 of 78

Page 371 of 1393 ends

EXHIBIT A
pg. 30 of 78

Page 372 of 1393 ends

EXHIBIT A
pg. 31 of 78

Page 373 of 1393 ends

EXHIBIT A
pg. 32 of 78

Page 374 of 1393 ends

EXHIBIT A
pg. 33 of 78

Page 375 of 1393 ends

EXHIBIT A
pg. 34 of 78

Page 376 of 1393 ends

EXHIBIT A
pg. 35 of 78

Page 377 of 1393 ends

EXHIBIT A
pg. 36 of 78

Page 378 of 1393 ends

EXHIBIT A
pg. 37 of 78

Page 379 of 1393 ends

EXHIBIT A
pg. 38 of 78

Page 380 of 1393 ends

EXHIBIT A
pg. 39 of 78

Page 381 of 1393 ends

EXHIBIT A
pg. 40 of 78

Page 382 of 1393 ends

EXHIBIT A
pg. 41 of 78

Page 383 of 1393 ends

EXHIBIT A
pg. 42 of 78

Page 384 of 1393 ends

EXHIBIT A
pg. 43 of 78

Page 385 of 1393 ends

EXHIBIT A
pg. 44 of 78

Page 386 of 1393 ends

EXHIBIT A
pg. 45 of 78

Page 387 of 1393 ends

EXHIBIT A
pg. 46 of 78

Page 388 of 1393 ends

EXHIBIT A
pg. 47 of 78

Page 389 of 1393 ends

EXHIBIT A
pg. 48 of 78

Page 390 of 1393 ends

EXHIBIT A
pg. 49 of 78

Page 391 of 1393 ends

EXHIBIT A
pg. 50 of 78

Page 392 of 1393 ends

EXHIBIT A
pg. 51 of 78

Page 393 of 1393 ends

EXHIBIT A
pg. 52 of 78

Page 394 of 1393 ends

EXHIBIT A
pg. 53 of 78

Page 395 of 1393 ends

EXHIBIT A
pg. 54 of 78

Page 396 of 1393 ends

EXHIBIT A
pg. 55 of 78

Page 397 of 1393 ends

EXHIBIT A
pg. 56 of 78

Page 398 of 1393 ends

EXHIBIT A
pg. 57 of 78

Page 399 of 1393 ends

EXHIBIT A
pg. 58 of 78

Page 400 of 1393 ends

EXHIBIT A
pg. 59 of 78

Page 401 of 1393 ends

EXHIBIT A
pg. 60 of 78

Page 402 of 1393 ends

EXHIBIT A
pg. 61 of 78

Page 403 of 1393 ends

EXHIBIT A
pg. 62 of 78

Page 404 of 1393 ends

EXHIBIT A
pg. 63 of 78

Page 405 of 1393 ends

EXHIBIT A
pg. 64 of 78

Page 406 of 1393 ends

EXHIBIT A
pg. 65 of 78

Page 407 of 1393 ends

EXHIBIT A
pg. 66 of 78

Page 408 of 1393 ends

EXHIBIT A
pg. 67 of 78

Page 409 of 1393 ends

EXHIBIT A
pg. 68 of 78

Page 410 of 1393 ends

EXHIBIT A
pg. 69 of 78

Page 411 of 1393 ends

EXHIBIT A
pg. 70 of 78

Page 412 of 1393 ends

EXHIBIT A
pg. 71 of 78

Page 413 of 1393 ends

EXHIBIT A
pg. 72 of 78

Page 414 of 1393 ends

EXHIBIT A
pg. 73 of 78

Page 415 of 1393 ends

EXHIBIT A
pg. 74 of 78

Page 416 of 1393 ends

EXHIBIT A
pg. 75 of 78

Page 417 of 1393 ends

EXHIBIT A
pg. 76 of 78

Page 418 of 1393 ends

EXHIBIT A
pg. 77 of 78

Page 419 of 1393 ends

EXHIBIT A
pg. 78 of 78

Page 420 of 1393 ends

EXHIBIT C
pg. 1 of 11

Page 421 of 1393 ends

EXHIBIT C
pg. 2 of 11

Page 422 of 1393 ends

EXHIBIT C
pg. 3 of 11

Page 423 of 1393 ends

EXHIBIT C
pg. 4 of 11

Page 424 of 1393 ends

EXHIBIT C
pg. 5 of 11

Page 425 of 1393 ends

EXHIBIT C
pg. 6 of 11

Page 426 of 1393 ends

EXHIBIT C
pg. 7 of 11

Page 427 of 1393 ends

EXHIBIT C
pg. 8 of 11

Page 428 of 1393 ends

EXHIBIT C
pg. 9 of 11

Page 429 of 1393 ends

EXHIBIT C
pg. 10 of 11

Page 430 of 1393 ends

EXHIBIT C
pg. 11 of 11

Page 431 of 1393 ends

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, June 23, 2026
TO: CITY COUNCIL
WRITTEN BY: WATER PROJECT MANAGER BRANDENBURG
RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR GREEN APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: AWARD SOLE SOURCE CONTRACT TO AQUA-METRIC SALES COMPANY

FOR WATER METERS AND READING EQUIPMENT, IN AN AMOUNT NOT TO EXCEED $867,000 PLUS ANY COST ADJUSTMENTS FOR THE ACTUAL

COST OF TAXES AND FREIGHT CHARGED AT THE TIME OF SHIPMENT,

FOR A TOTAL CONTRACT PE
RECOMMENDATION:

Staff recommends the Council adopt a resolution awarding sole source contract to Aqua-Metric Sales Company for the purchase of water meters and reading equipment, in an amount not to exceed $867,000 plus any cost adjustments for the actual cost of taxes and freight charges at the time of shipment, for a total contract duration of two (2) years, funded from the Water Enterprise Fund, and authorizing the City Manager to execute the same.

BACKGROUND:

The City has standardized on Sensus USA's Advanced Metering Infrastructure (AMI) meter-reading system for all of its citywide water meters. Approximately 10% of the City’s large commercial, multi-residential and residential water meters need to be updated to modern standards every year. The proposed contract agreement would achieve this goal over the next two years.

DISCUSSION:

The Water Division is responsible for reading and maintaining the City’s water meters and meter reading equipment. The City uses Sensus USA, Inc. as the sole source vendor for the City's Advanced Metering Infrastructure (AMI) water meter reading system (i.e. water meter reading equipment and meter reading hardware and software).

Page 432 of 1393 ends

2 Sensus USA, Inc. has awarded Aqua-Metric Sales Company the exclusive franchise area rights to Northern California to provide Sensus water meter reading equipment and services. The ability for the City to use Aqua-Metric Sales Company as a vendor will complement the City’s existing Sensus AMI meter reading system with capabilities such as reading pressure, temperature, flow and the ability to shut off water services remotely. No other meter manufacturers can connect to the City’s existing AMI two-way meter reading system, so no other quotes were obtained.

This purchase of equipment is exempt from the City’s formal written competitive bidding requirements for purchases exceeding $100,000 under Article 4 of Chapter 5 (Purchasing Procedures) of Title 3 (Finance) of the Watsonville Municipal Code. The specific exemption is subdivision (c) of Section 3-5.210 “equipment, supplies or nonprofessional services are unique, available only from one (1) source, or sought to match existing equipment or supplies already in use (also known as a sole source purchase)” and also under subdivision d) “Equipment, supplies or nonprofessional services have been uniformly adopted or otherwise standardized in the City.

In this case, evidence for the standardization shall be documented and maintained as a public record and approved by the Purchasing Officer before the purchase and then at least once every five (5) years”.

Attached to this report is a letter from Sensus USA confirming that Aqua-Metric Sales Company is the sole vendor authorized to sell AMI meter-reading equipment and services. Staff therefore recommends that the sole source contract for the purchase of these meters be awarded to AquaMetric Sales Company, in an amount not to exceed $867,000 plus any adjustments necessary for the cost of actual taxes and freight charged 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 accordance with CEQA Guidelines Section 15378(b)(5), in that adopting a Resolution awarding contract to Aqua-Metric Sales Company, for the purchase of water meters and reading equipment does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and if a “project,” is exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.

STRATEGIC PLAN:

The project is consistent with the following Strategic Plan goal:

Infrastructure & Environment

Page 433 of 1393 ends

3 FINANCIAL IMPACT:

The total cost of this purchase is $867,000.  This project is included in the current adopted Water Enterprise budget 0720-913-7833-15117 for fiscal year 26/27 & projected fiscal year 27/28 ALTERNATIVE ACTION:

Council may choose not to enter a contract with Aqua-Metric Sales Company for sole-source water meters and reading equipment designed for the City’s existing AMI system.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

1. Sensus Statement: Awarded Franchise

2. FY 26/27 & 27/28 sales quote

Page 434 of 1393 ends

Trena Simmons
Channel Marketing Specialist, Sales Enablement
Sensus, Xylem Brand
Trena Simmons
637 Davis Drive
Morrisville, NC 27560 USA
T: 919.424.8959
[email protected]
sensus.com
4/1/2026
Re: Sole Source
To Whom It May Concern:

Sensus, a Xylem brand recognizes Aqua-Metric Sales Company is the exclusive Authorized Distributor of Sensus products for the state of California through 2027.

Purchasing Sensus products from an authorized distributor in your area ensures that your products will be properly supported and warranted. Please contact AquaMetric Sales Company for all of your Sensus needs.

We look forward to providing your business with quality water products and service in the near future. Please feel free to contact me if you have any questions.

Sincerely,
Attachment 1

Page 1 of 1 ends

Page 435 of 1393 ends

Sales Quote
Aqua-Metric Sales Company
Mike Bortoletto - Solutions Specialist
1060 National Drive #5. Sacramento, CA 95834
Phone: (916)668-4656 | Cell: (916)-824-4552
Quote for: City of Watsonville
Attention: Max Brandenburg
Address: 320 Harvest Dr
City, State, ZIP: Watsonville, CA 95076
Phone: 831-768-3155
Email: [email protected]
Quantity Description Unit Price Line Total
1 520M SmartPoint $172.00 $172.00
1 5/8x3/4" iPerl Brass 1CF $185.00 $185.00
1 5/8x3/4" Ally 1CF $428.00 $428.00
1 3/4" iPerl Brass 1CF $188.00 $188.00
1 3/4" Ally 1CF $469.00 $469.00
1 1" iPerl Brass 1CF $273.00 $273.00
1 1" Ally 1CF $490.00 $490.00
1 1.5" Omni R2 1CF $686.00 $686.00
1 2" Omni R2 1CF $892.00 $892.00
1 1.5" Omni C2 1CF $1,417.00 $1,417.00
1 2" Omni C2 1CF $1,624.00 $1,624.00
1 3"Omni C2 1CF $2,057.00 $2,057.00
1 1.5" Cordonel 1CF $2,221.00 $2,221.00
1 2" Cordonel 1CF $2,475.00 $2,475.00
1 3" Cordonel 1CF $2,990.00 $2,990.00
1 4" Cordonel 1CF $4,500.00 $4,500.00
1 8" Cordonel 1CF $11,325.00 $11,325.00
Subtotal $32,392.00
Tariff
Shipping & Handling
Sales Tax $2,996.26
Total $35,388.26
This quote for the product and services named above is subject to the following terms::

1. All quotes are subject to the Aqua-Metric Terms of Sale.

2. Quote is valid for 2 years with 3-5% increase after year 2. Unless major price increase from Sensus.

3. Freight allowed on single orders exceeding $80,000.00.

4. Net Thirty Days to Pay

5. Returned product may be subject to a 25% restocking fee.

6. Sales Tax and/or Freight charges are approximated and may vary on final invoice.

May 14, 2026
TAXES AND FEES. All prices quoted are exclusive of federal taxes, state taxes, municipal taxes, tariffs, duties, and other government-imposed fees (collectively the “Taxes and Fees”) related to the procurement, installation, and delivery of materials and equipment. Customer shall be liable for all applicable Taxes and Fees imposed upon the Goods purchased. Taxes and Fees will be added to each applicable invoice and are the responsibility of the Customer. If Customer is exempt from sales tax, Customer is required to provide all applicable tax exemption documentation at the time of purchase.

Any changes in Taxes and Fees may result in adjustments to the final invoice accordingly.

Proprietary and Confidential Page 1 of 1
Attachment 2

Page 1 of 1 ends

Reso No. (CM)
Meeting Date: 060926 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO. __________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

AWARDING CONTRACT TO AQUA-METRIC SALES COMPANY, AN
AFFILIATE OF SENSUS USA INC’S, FOR THE PURCHASE OF WATER

METERS AND READING EUIPMENT, IN AN AMOUNT NOT TO EXCEED $867,000 PLUS ANY COST ADJUSTMENTS FOR THE ACTUAL COST OF

TAXES AND FREIGHT CHARGED AT THE TIME OF SHIPMENT, FOR A TOTAL CONTRACT DURATION OF TWO YEARS; AND AUTHORIZING

CITY MANAGER TO EXECUTE A SERVICES AND PURCHASING

AGREEMENT (FUNDED FROM THE WATER ENTERPRISE FUND)
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, the City uses Sensus USA, Inc., as the vendor for the City’s Advanced Metering Infrastructure (AMI) water meter reading system; 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 subdivision (d) of § 3-5.210 exempts purchase requirements where “equipment, supplies or nonprofessional services have been uniformly adopted or otherwise standardized in the City. In this case, evidence for the standardization shall be documented and maintained as a public record and approved by the Purchasing Officer before the purchase and then at least once every five (5) years”; and
WHEREAS, the Sensus AMI water meters are only available from one source—an authorized Sensus USA Inc. vendor and the only vendor in Northern California is AquaMetric Sales Company; and

Page 437 of 1393 ends

Reso No. (CM)
Meeting Date: 060926 2
WHEREAS, with the proposed purchase of water meters and reading equipment, the City’s water system will modernize with the capability of reading pressure, temperature, flow and the ability to shut off water services remotely. No other meter manufacturers can connect via two-way to the City’s existing Sensus AMI meter ready 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 adopting a Resolution approving a sole source purchase agreement for water meters and services does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, and 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 water meters and reading equipment from Aqua-Metric Sales Company 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) and (d) of § 3-5.210 of the Municipal Code.

Page 438 of 1393 ends

Reso No. (CM)
Meeting Date: 060926 3

4. That the Council hereby awards contract to Aqua-Metric Sales Company, in the form attached hereto and incorporated herein by this reference, for the purchase of water meters and reading equipment, in an amount not to exceed $867,000 plus any cost adjustments for the actual cost of taxes and freight charged at the time of shipment, for FY 26/27 & 27/28.

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

Page 439 of 1393 ends

Page 1 of 9 ends

CONTRACT FOR CONSULTANT SERVICES BETWEEN

THE CITY OF WATSONVILLE AND AQUA-METRIC SALES COMPANY
THIS CONTRACT, is made and entered into this , by and
between the City of Watsonville, a municipal corporation, hereinafter called "City," and Aqua-Metric Sales Company, hereinafter called "Consultant."

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

THE PARTIES HEREBY AGREE AS FOLLOWS:

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

SECTION 2. TERM OF CONTRACT. The term of this Contract shall be from July 1, 2026 to June 30, 2028, inclusive.

SECTION 3. SCHEDULE OF PERFORMANCE. The services of Consultant are to be completed according to the schedule set out in Exhibit “B,” entitled “SCHEDULE OF PERFORMANCE,” which is attached hereto and incorporated herein. Consultant will diligently proceed with the agreed Scope of Services and will provide such services in a timely manner in accordance with the “SCHEDULE OF PERFORMANCE.” SECTION 4. COMPENSATION. The compensation to be paid to Consultant including both payment for professional services and reimbursable expenses as well as the rate and schedule of payment are set out in Exhibit “C” entitled “COMPENSATION,” which is attached hereto and incorporated herein. This amount shall not exceed $867,000.

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

SECTION 6. INDEPENDENT CONSULTANT. It is understood and agreed that Consultant, in the performance of the work and services agreed to be performed by Consultant, shall act as and be an independent Consultant and not an agent or Docusign Envelope ID: 1325E8A5-8A5C-8517-804C-DA310E64E132

Page 440 of 1393 ends

Page 2 of 9 ends

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 8. INDEMNIFICATION. Consultant represents that 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 agrees to defend, indemnify and hold harmless City, its officers, agents, and employees, against any loss or liability arising out of or resulting in any way from work performed by or on behalf of Consultant under this Contract or the errors or omissions by Consultant.

SECTION 9. INSURANCE.

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

B. 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.

Docusign Envelope ID: 1325E8A5-8A5C-8517-804C-DA310E64E132

Page 441 of 1393 ends

Page 3 of 9 ends

C. 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.

D. 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.

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

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.

Docusign Envelope ID: 1325E8A5-8A5C-8517-804C-DA310E64E132

Page 442 of 1393 ends

Page 4 of 9 ends

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

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

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

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

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

SECTION 19. CONFLICT OF INTEREST.

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

B. No member, officer, or employee of the City, during their tenure, or for one (1) year thereafter, shall have any interest, direct or indirect, in this Contract or the Docusign Envelope ID: 1325E8A5-8A5C-8517-804C-DA310E64E132

Page 443 of 1393 ends

Page 5 of 9 ends

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

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

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

CONSULTANT
Thirkettle Inc.

Aqua-Metric Sales Company
4050 Flat Rock Dr.

Riverside, CA 92505
(951) 637-1400
SECTION 22. EXHIBITS:

Exhibit A: Scope of Services
Exhibit B: Schedule of Performance
Exhibit C: Compensation
///
///
///
///
Docusign Envelope ID: 1325E8A5-8A5C-8517-804C-DA310E64E132

Page 444 of 1393 ends

Page 6 of 9 ends

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

AQUA-METRIC SALES COMPANY
BY_________________________________
Tommy Thirkettle, President
Docusign Envelope ID: 1325E8A5-8A5C-8517-804C-DA310E64E132

Page 445 of 1393 ends

Page 7 of 9 ends

EXHIBIT "A"

SCOPE OF SERVICES
The scope of services is as follows:

The purchase of Sensus Advanced Metering Infrastructure (AMI) water meters and water meter reading equipment and services.

See attached Sales Quote Labeled EXHIBIT “A”, for listing of equipment and services to be purchased from Aqua-Metric Sales Company. The listing of equipment and services is subject to terms as described in EXHIBIT “A”.

Docusign Envelope ID: 1325E8A5-8A5C-8517-804C-DA310E64E132

Page 446 of 1393 ends

Page 8 of 9 ends

EXHIBIT "B"

July 1, 2026, through June 30, 2028.

Docusign Envelope ID: 1325E8A5-8A5C-8517-804C-DA310E64E132

Page 447 of 1393 ends

Page 9 of 9 ends

EXHIBIT "C"

COMPENSATION
a. Total Compensation. The total obligation of City under this Contract shall not exceed ___$867,000______________.
b. Basis for Payment. Payment(s) to Consultant for services performed under this contract shall be made as follows and shall [not] include payment for reimbursable expenses:
c. Payment Request. Consultant shall submit a request for payment for services on a monthly basis by letter to Director, or said Director's designated representative. Such request for payment shall cover the preceding monthly period during the term hereof, shall note the City's purchase order number for this contract, shall contain a detailed listing of the total number of items or tasks or hours for which payment is requested, the individual dates on which such services were rendered, and invoices for reimbursable expenses, if any. Upon receipt in the Office of Director of said payment request, Director shall cause payment to be initiated to Consultant for appropriate compensation.

Docusign Envelope ID: 1325E8A5-8A5C-8517-804C-DA310E64E132

Page 448 of 1393 ends

1. All quotes are subject to the Aqua-Metric Terms of Sale.

2. Quote is valid for 2 years with 3-5% increase after year 2. Unless major price increase from Sensus.

3. Freight allowed on single orders exceeding $80,000.00.

4. Net Thirty Days to Pay

5. Returned product may be subject to a 25% restocking fee.

6. Sales Tax and/or Freight charges are approximated and may vary on final invoice.

Any changes in Taxes and Fees may result in adjustments to the final invoice accordingly.

Proprietary and Confidential Page 1 of 1
EXHIBIT "A"
pg. 1 of 1
Docusign Envelope ID: 1325E8A5-8A5C-8517-804C-DA310E64E132

Page 449 of 1393 ends

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, June 23, 2026
TO: CITY COUNCIL
WRITTEN BY: PRINCIPAL ENGINEER FRASER
RECOMMENDED BY: PUBLIC WORKS & UTILITIES DIRECTOR GREEN APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: AWARD OF CONTRACT FOR THE INSTALLATION OF PRESSURE

REDUCING STATION AT KLASSEN LANE AND GREEN VALLEY ROAD, IN THE AMOUNT OF $238,000
RECOMMENDATION:

Adopt a resolution awarding contract to K.J. Woods Construction, Inc., for installation of the Klassen Lane Pressure Reducing Station, Project WA-22-14998, in the amount of $238,000, and authorize and direct the City Manager to execute the same.

BACKGROUND:

The Watsonville water distribution system is divided into multiple pressure zones based on the elevation of the areas they serve. The system is labeled as such that the higher the zone number, the higher the elevation and therefore the hydraulic head relative to sea level. Boundaries between zones contain pressure-reducing stations, allowing water from an upper zone to cascade down to a lower zone if needed.

Reverse flow (low-to-high) is achieved using pump stations.

Klassen Lane is located at the boundary of Zone 2 (northeastern section) and Zone 3 (eastern section).

The main pressure-reducing station for the Zone 3-Zone 2 boundary is located on Freedom Blvd.

When there is a main break in the eastern section of Zone 3, one way to continue providing water is to open the Zone 3-to-Zone 2 boundary valve (Z3-Z2) on Klassen Lane. This requires a staff response and manual valve operation. This has occurred 4 times in the past 10 years. The Klassen Lane Pressure Reducing Valve (KLPRV) will automatically perform this function.

If there were a main break in the northeastern section of Zone 2, currently, there is only an isolation valve located at the Zone 3 to Zone 2 boundary. Opening this current valve would over-pressurize the

Page 450 of 1393 ends

2 northeastern section of Zone 2 and allow unrestricted flow from the higher-pressure Zone 3 to Zone 2.

Staff has commissioned the design of an emergency pressure-reducing station for installation at Klassen Lane. This design has eliminated costly instrumentation and controls that are not required during emergency operations.

Installing this design would increase the reliability of the distribution system in this area between Zones 2 and 3 by allowing flow in both directions under emergency conditions.

The Engineer’s Cost Estimate for installation is $241,000.

DISCUSSION:

The Klassen Lane PRV Project was bid previously in 2024. The bids were far above the engineer’s estimate, mainly due to the higher-than-anticipated cost of the electrical service required for a fully automated station. Council adopted Resolution No. 134-24 rejecting all bids and authorizing re-bidding of the project.

Staff completed a design of the project to eliminate the electrical portion of the scope of work and just make the PRV a fully mechanical device with no automation, which was determined to be costprohibitive.

Bids for the construction of this project were advertised on April 24, 2026, and bids were opened on June 2, 2026, at 2:00pm. A total of five (5) bids were received prior to the bid submission deadline, and the results are tabulated below:

Contractor Bid total
K.J. Woods $238,000
Monterey Peninsula Engineering $307,000
DACO Construction $364,447
Pacific Underground Construction $395,140
Corcus Construction $431,050
All bids were responsive, and K.J. Woods is the low bidder. Staff recommends that Council award a contract to the lowest responsive, responsible bidder, K.J. Woods, Inc. in the amount of $238,000.

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 15301 Class 1 (b), in that the addition of a pressure reducing valve on an existing water main is a minor alteration of an existing publicly-owned water utility with a negligible or no expansion of existing use.

STRATEGIC PLAN:

The project is consistent with the following Strategic Plan goal(s):

Page 451 of 1393 ends

3 Infrastructure & Environment
FINANCIAL IMPACT:

This is the planned project in the Water Enterprise Fund Capital Improvement Plan (CIP). The cost of this construction contract is $238,000. There are sufficient funds available in budget account 0720-913-7855- 14998 to cover the cost of the contract.

ALTERNATIVE ACTION:

No reasonable alternative known. If this contract were not awarded, the costs would likely increase upon rebid.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

Page 452 of 1393 ends

Reso No. (CM)
Meeting Date: 062326 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE AWARDING CONSTRUCTION CONTRACT TO K.J.

WOODS CONSTRUCTION, INC., A CORPORATION, FOR THE
KLASSEN PRESSURE REDUCING STATION PROJECT, NO. WA-22-
14998, IN THE AMOUNT OF $ 238,000; AND AUTHORIZING CITY

MANAGER TO EXECUTE CONTRACT (FUNDED BY THE WATER

ENTERPRISE FUND)
WHEREAS, on July 9, 2024, the City Council adopted Resolution No. 134-24 (CM) rejecting all bids for the Klassen Pressure Reducing Station Project No. WA-22-14998, and authorizing re-advertisement calling for bids for the Klassen Pressure Reducing Station Project, No. WA-22-14998; and
WHEREAS, pursuant to Title 7, Chapter 14 of the City of Watsonville Municipal Code, the City issued a notice inviting bids and bids were received for the Klassen Pressure Reducing Station Project, No. WA-22-14998; and WHEREAS, bids that were submitted by the deadline, were publicly opened using our electronic bidding platform (OpenGov Procurement) on June 2, 2026, at 2:00 PM, and later tabulated by the Purchasing Officer for the consideration of the City Manager and submission to the City Council; and
WHEREAS, the City Manager has recommended that the bid from K.J. Woods Construction, Inc., a corporation, with Contractor License # 701797, for the Klassen Pressure Reducing Station Project, No. WA-22-14998, in the amount of $238,000, be accepted as the lowest responsible and responsive bidder.

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 15301 Class 1 (b), in

Page 453 of 1393 ends

Reso No. (CM)
Meeting Date: 062326
2 that the addition of a pressure reducing valve on an existing water main is a minor alteration of an existing publicly-owned water utility with a negligible or no expansion of existing use.

2. That the construction contract is hereby awarded to K.J. Woods Construction, Inc., a corporation, for the Klassen Pressure Reducing Station Project, No.

WA-22-14998, in the amount of $ 238,000, in the form on file in the Office of the City Clerk.

3. The City Manager is hereby authorized and directed to execute said construction 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. ********************************

Page 454 of 1393 ends

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, June 23, 2026
TO: CITY COUNCIL
WRITTEN BY: AIRPORT DIRECTOR WILLIAMS
RECOMMENDED BY: AIRPORT DIRECTOR WILLIAMS
APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: APPROVAL OF MUNICIPAL AIRPORT PURCHASE ORDER FOR SOLE

SOURCE VENDOR OF UNLEADED AVIATION FUEL
RECOMMENDATION:

Adopt a resolution approving a sole source purchase from Swift Fuels, LLC., of West Lafayette, Indiana, for the purchase of unleaded aviation fuel for fiscal years 2026-2028, in an amount not to exceed $250,000.

BACKGROUND:

The Federal Aviation Administration (FAA), Environmental Protection Agency (EPA), and industry have partnered to remove lead from aviation gasoline (AvGas) as AvGas emissions have become the largest contributor to the relatively low levels of lead emissions produced in this country. Over the last two-andone-half years the Municipal Airport has observed AvGas fuel purchases have been reduced 20% since the introduction of unleaded fuel at the airport.

DISCUSSION:

Owners and operators of more than 167,000 piston-engine aircraft operating in the United States rely on aviation gasoline (AvGas) to power their aircraft. AvGas is the only remaining lead-containing transportation fuel. Although lead in AvGas prevents engine damage, lead is a toxic substance that can be inhaled or absorbed in the bloodstream. The FAA, EPA and industry are partnering to remove lead from AvGas. AvGas emissions have become the largest contributor to the relatively low levels of lead emissions produced in this country.

Over the last ten years the Municipal Airport has continued to monitor the development of high octane, unleaded fuel formulations. The result of these efforts has identified Swift Fuels LLC as a supplier of

Page 455 of 1393 ends

2 operationally safe alternatives to leaded AvGas. Swift Fuels, LLC is the sole provider of unleaded aviation fuel that meets the American Society for Testing and Materials (ASTM) in the United States. There are no other sources for unleaded aviation fuel meeting the ASTM standard. Swift Fuel 100R has been approved by the FAA as an authorized fuel for certain models of piston powered aircraft.

The City of Watsonville is uniquely positioned to continue to provide unleaded aviation fuel for sale to flight schools, aircraft owners, operators and transient pilots. The Municipal Airport will continue to offer AvGas as an option given the substantial number of aircraft that require such fuel.

It is estimated that AvGas fuel purchases will be reduced by as much as 20% due to the introduction of unleaded aviation fuel as an available fuel at the airport.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

Approval of the purchase order and the subsequent purchase and resale of unleaded aviation fuel with Swift Fuel, LLC. 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.

STRATEGIC PLAN:

Approving the purchase order, and the subsequent purchase and resale of Swift fuels, supports the Municipal Airport’s commitment to lessen general aviation’s environmental impact on the Airport, Community, and the City.

Infrastructure & Environment
Public Safety
FINANCIAL IMPACT:

The fiscal impact of this proposed purchase order is net neutral, as the unleaded fuel purchased will substitute commensurate AvGas purchases for FY2026-2028.

ALTERNATIVE ACTION:

The City Council may choose not to issue the purchase order. Leaded AvGas sales will not be reduced.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

Page 456 of 1393 ends

Reso No. (CM)
Meeting Date: 062326 SWZ ______ TV ______ Airport ______ 1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING SALES AGREEMENT WITH SWIFT
FUELS, LLC., A LIMITED LIABILITY COMPANY, FOR THE SOLE

SOURCE PURCHASE OF UNLEADED AVIATION FUEL FOR FISCAL
YEAR 2026-2028, IN AN AMOUNT NOT TO EXCEED $250,000, AND

AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE
SAME (FUNDED FROM THE AIRPORT ENTERPRISE FUND [0730])
WHEREAS, 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 that are unique, available only from one (1) source, or sought to match existing equipment or supplies already in use (also known as a sole source purchase); and WHEREAS, Swift Fuels, LLC., is the sole provider of unleaded aviation fuel in the United States, there are no other sources for unleaded aviation fuel.

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

1. This action is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15378(b)(5), in that adopting a Resolution approving agreement for the purchase of non-leaded aviation fuel does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and if a “project,” is exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.

Page 457 of 1393 ends

Reso No. (CM)
Meeting Date: 062326
2 2. 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 Watsonville Municipal Code.

3. The Council finds that the purchase of unleaded aviation fuel is available from one source and is approved by the Federal Aviation Administration (FAA) as an authorized fuel for certain models of piston powered aircraft (also known as a sole source purchase).

4. That this sole source purchase from Swift Fuels, LLC., a limited liability company, in an amount not to exceed $250,000 for Fiscal Year 2026-2028, is hereby authorized.

5. That the Sales Agreement between the City of Watsonville and Swift Fuels, LLC., a limited liability company, for the purchase of unleaded aviation fuel, a copy of which Contract is attached hereto and incorporated herein by this reference, is hereby approved.

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

Page 458 of 1393 ends

In Process
Strictly Confidential
Aviation Fuels - Sales Agreement
This Sales Agreement, effective from July 1, 2026, is between Swift Fuels, LLC, a limited liability company with business offices located at 1435 Win Hentschel Blvd, Suite 205, West Lafayette, Indiana (“Seller”) and City of Watsonville, a municipal corporation with airport operations located at Watsonville Municipal Airport, 100 Aviation Way, Watsonville, CA 95076, in the county of Santa Cruz, California (“Buyer”).

Whereas Seller produces, markets, and sells proprietary unleaded aviation gasoline products and services to the US market on a nationwide basis, the Buyer may from time-to-time desire to purchase such products and services from Seller, accordingly the parties hereby agree to the following terms of this Sales Agreement:

Products and Services
Seller offers premium quality unleaded aviation gasoline products which meet or exceed ASTM International fuel specification standards. Currently this includes UL94 Unleaded Avgas which complies with ASTM International D7547 fuel specification and is FAA-approved and certificated for approximately 73% of the US piston fleet. Original Equipment Manufacturers (OEMs) also exhibit their approval of UL94 with their type-certificated engine approvals and airframe approvals with minimum aviation gasoline operating limitations in order to affirm their warranty in using our UL94 unleaded fuel product.

Seller also offers 100R unleaded avgas compliant with ASTM D8603, which continues its engine and airframe certification testing by FAA, and upon appropriate FAA approval will also become available to Buyer under this contract.

Various ancillary items are also available from Seller including: STC certificates, fuel dispensing items, hot-back-up supply, marketing items, fueling services, etc. on an as-needed basis.

Pricing
Seller maintains a weekly fuel price quoting system for each fuel product outlined above. As fuel pricing may depend upon commodity markets, freight surcharges, fuel handling, etc. volatility can exist from time-to-time. Accordingly, Seller utilizes a Fair Market Price Methodology for determining unleaded avgas prices. When Buyer desires to purchase a fuel product from Seller, a standard price quotation is delivered online by Seller for Buyer’s sole approval, subject to possible expiration. This quotation generally includes estimated delivery charges to the Buyers location. Upon acceptance, the delivery will consummate typically within 5 to 7 business days (unless previously advised of extraordinary supply-chain circumstances).

Docusign Envelope ID: F94F356B-8D51-8D3F-8305-1C03968518D5

Page 459 of 1393 ends

In Process
Strictly Confidential
Buyer shall thereafter be responsible to pay any duty, tax, fee, surcharge, or levy of any kind including the charge from any national, state, county or local jurisdiction involving the supply, delivery, sale, inspection, storage, and handling of fuels subject to the demonstration of an appropriate invoice that identifies an exception to an otherwise agreed Seller invoice.

Payment Terms
Each product price quotation will identify the specified payment terms. Seller generally expects payment on fuel deliveries of Net15 from date of invoice with 5% interest charged on any outstanding balance unpaid after each 30-days from invoice. Other payment terms may also be used from time-to-time. Failure to pay in a timely fashion may entitle Seller at its sole discretion to restrain or stop fuel product supply until unpaid balances on prior invoices are resolved.

Delivery / Risk of Loss
Title of fuel shall pass to the Buyer when delivered to designated airport fuel tanks and/or the inlet to any designated fuel facility in the Watsonville airport area, or otherwise as agreed in writing by Buyer and Seller. The Buyer will be responsible for operating all airport / FBO assets including fuel quality systems, and all valves, switches and controls impacting aircraft refueling.

The Seller will have no role in the delivery of fuel products to any aircraft.

All fuel deliveries and any defueling operations will be carried out in accordance with the quality control and operations procedures of Seller for the state of California that comply with industry norms. This includes:
 Declaration of the appropriate Safety Data Sheet
 Review and confirmation of local Standard Operating Procedures for Fuel Handling  Declaration of the ASTM Certificate of Analysis (for each batch of fuel)  Declaration of the transport Bill of Lading (for each batch of fuel)  Declaration of Safe Refueling Practices
Buyer will be responsible for risk of loss of product or any off-spec product following confirmed delivery to Buyer’s location and signed receipt of acceptance.

Indemnity
Buyer hereby indemnifies and holds Seller and its agents (involved in managing and delivering fuel products and services) harmless against all claims, demands, proceedings, damages, torts, and liabilities for loss of, or damage to, any property or for injury caused including fatal injury, physical harm or illness and against all business and consequential costs including legal fees and expenses arising out of or pertaining to any action or omissions of the Seller in performing its duties, except to the extent caused by Gross Negligence or Willful Misconduct of the Seller and its agents.

Docusign Envelope ID: F94F356B-8D51-8D3F-8305-1C03968518D5

Page 460 of 1393 ends

In Process
Strictly Confidential
Insurance
Seller will provide an annual declaration of its $50 million Product Liability Insurance coverage for its aviation fuel products.

Buyer will maintain an appropriate General Commercial Liability and Environmental Pollution Insurance Coverage for the areas where aviation fuel products are stored and handled. Buyer will also maintain proper compliance monitoring of all product storage tanks, DHS site access security, and a current Spill Prevention and Countermeasure Control Plan for the site.

Warranty
All products are sold “as is”. There is no expressed or implied warranty on products other than in the case of the fuels – their compliance with ASTM International fuel standards indicated by the Certificate of Analysis presented at delivery. The Seller does not assume responsibility (or authorize any other person to assume responsibility on behalf of the Seller) any liability in connection with the sale of these products or services. The Buyer assumes full responsibility for the proper storage, handling and dispensing of fuels once delivered at the Buyer’s location according to proper industry standards.

Title
Title will remain with the Seller until the time of delivery and upon receipt at Buyer’s location.

The Seller will retain a security interest in all products delivered until full payment has been received by Seller. Buyer’s failure to give notice to any claims of the product’s quality at time of delivery will constitute an unqualified acceptance of the product.

Delays / Force Majeure
The Seller will not be liable for any unplanned delay or damage due to supply-chain disruptions, labor disputes, transportation shortages, weather events, earthquakes, Acts of God, mechanical or electrical faults, or similar force-majeure-type events that disrupt Seller’s products and services being delivered to Buyer in a timely and otherwise professional fashion.

Term
The Sales Agreement is not exclusive and will therefore remain in effect as long as both parties are mutually satisfied to continue openly buy and sell products with one another. The Buyer has no obligation to buy from Seller. The Seller has no obligation to sell to Buyer. Both parties aspire to engage in a long-term amicable business relationship.

Docusign Envelope ID: F94F356B-8D51-8D3F-8305-1C03968518D5

Page 461 of 1393 ends

In Process
Strictly Confidential
Assignment
The Buyer shall not assign its rights and obligations to this Sales Agreement to any party without the prior written consent of the Seller.

Confidentiality
The information that is contained in this Sales Agreement and all commercial and operational information exchanged between the parties shall be treated as confidential. Any public communications will be cleared in writing between Buyer and Seller in advance.

Governance
The Sales Agreement shall be governed by the laws of the state of Indiana. This document constitutes the entire agreement between the parties, subject to specified terms and provisions that may add restrictions in a formal quotation to be approved by the Buyer.

The parties hereby approve this Sales Agreement effective July 1, 2026:

For: City of Watsonville, CA For: Swift Fuels Avgas, LLC By: ___________________________ By_______________________ Name: Name: Chris D’Acosta
Title: Title: CEO
Email: Email: [email protected]
Phone: Phone: (765) 464-8336
Cell: (316) 518-9371
Docusign Envelope ID: F94F356B-8D51-8D3F-8305-1C03968518D5 6/8/2026 | 1:32 PM PDT

Page 462 of 1393 ends

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, June 23, 2026
TO: CITY COUNCIL
RECOMMENDED BY: ADMINISTRATIVE SERVICES DIRECTOR DURAN
APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: RESOLUTION AUTHORIZING THE CITY TO SEEK REQUEST FOR

PROPOSAL (RFP) FOR CONSULTANT SERVICES TO CONDUCT A

COMPREHENSIVE DEVELOPMENT IMPACT FEE STUDY
RECOMMENDATION:

It is recommended that the City Council authorize the City to seek requests for proposals for professional services for Request for Proposal (RFP) for consultant services to conduct a Comprehensive Development Impact Fee study.

BACKGROUND:

The City of Watsonville maintains several development impact fees that help fund public infrastructure projects and facilities needed to serve new development. Development impact fees are required to comply with the California Mitigation Fee Act (Government Code Sections 66000-66025) which requires local agencies to demonstrate a reasonable relationship between development impacts and the fees imposed to mitigate those impacts.

To ensure the City continues to comply with the requirements of the Mitigation Fee Act, a comprehensive review and update of the City’s current development impact fees is needed. This will ensure continued legal compliance and alignment with current and future service demands. The proposed study will evaluate existing development impact fees and update and replace the current fees identified in the City of Watsonville Annual and Five-Year Report Development Impact Fee Report. The study will also evaluate the feasibility of establishing additional impact fees, including a potential police facilities impact fee.

DISCUSSION:

Page 463 of 1393 ends

2 Staff has prepared a Request for Proposal (RFP) seeking qualified consultants with expertise in development impact fee nexus studies, municipal finance, infrastructure planning and California Mitigation Fee Act Compliance. The selected consultant will be expected to:
• Review existing development impact fee programs and supporting documentation. • Evaluate current and projected development within the City. • Assess public facility and infrastructure needs associated with future growth. • Prepare legally defensible nexus and proportionality analyses in compliance with state law. • Develop updated fee schedules for applicable development categories. • Compare proposed fees with those of comparable jurisdictions. • Conduct stakeholder outreach and public engagement activities. • Prepare a comprehensive nexus study and supporting implementation materials. • Assist staff and the City Council during the fee adoption process.

Upon authorization from Council, Finance will release the RFP and conduct the procurement process.

Proposals will be due by Friday, July 24, 2026.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

The proposed project is not a “project” as defined by CEQA guidelines as it involves fiscal planning that does not have the potential to result in a reasonably foreseeable change in the environment.

STRATEGIC PLAN:

Fiscal Health
FINANCIAL IMPACT:

There is no immediate financial impact with the release of this RFP. The contract amount will be determined after proposals are received and results are presented to Council for selection and contract award.

ALTERNATIVE ACTION:

Council may decide not to authorize the release of this RFP at this time.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

Page 464 of 1393 ends

3 1. Request for Proposal for Comprehensive Development Impact Fee Update

Page 465 of 1393 ends

1 Reso No. ______ (CM)
Meeting Date: 062326 SWZ ______ TV ______ Finance ______ RESOLUTION NO. __(CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE AUTHORIZING AND DIRECTING THE RELEASE OF

REQUEST FOR PROPOSALS (RFP) FOR CONSULTANT SERVICES TO

CONDUCT A COMPREHENSIVE DEVELOPMENT IMPACT FEE STUDY
WHEREAS, staff has prepared a Request for Proposals (RFP) to conduct a comprehensive development impact fee study.

WHEREAS, the RFP requests services to evaluate existing development impact fees and update and replace the current fees identified in the City of Watsonville Annual and Five-Year Report Development Impact Fee Report.

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 the proposed project is not a “project” as defined by CEQA guidelines as it involves fiscal planning that does not have the potential to result in a reasonably foreseeable change in the environment.

2. Council authorizes staff to issue Request for Proposals for consultant services to conduct a comprehensive development impact fee study.

3. That the deadline for submitting proposals is Friday, July 24, 2026.

4. The proposals should be delivered to the City of Watsonville, 250 Main St., Watsonville, CA 95076, c/o Marissa Duran, Administrative Services Director.

5. That after the proposals are opened, they shall be analyzed, and a report submitted to the City Manager, who shall recommend awarding, or other action, to the

Page 466 of 1393 ends

2 Reso No. ______ (CM)
Meeting Date: 062326
City Council at the next regular meeting, or as soon thereafter as possible. *****************************

Page 467 of 1393 ends

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, June 23, 2026
TO: CITY COUNCIL
WRITTEN BY: AIRPORT DIRECTOR WILLIAMS
RECOMMENDED BY: AIRPORT DIRECTOR WILLIAMS
APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: RESOLUTION APPROVING A TWO-YEAR AIRPORT GROUND LEASE WITH ARBOR WORKS, INC.

RECOMMENDATION:

Adopt a resolution approving a two (2) year ground lease with Arbor Works, Inc., for 10,000 square feet at the approach end of Runway 27.

BACKGROUND:

Arbor Works Inc. has been in business for over 20 years and is based in Oakhurst, California. Arbor Works, Inc. offers a full range of tree care services such as pruning, trimming, stump removal, grinding, and emergency storm response. Their team comprises certified arborists and experienced technicians.

DISCUSSION:

In May 2026, a foreman with Arbor Works, Inc. expressed the desire to lease property located at the end of the approach of Runway 27. Arbor Works Inc. entered into a three-year contract with PG&E and needed a fenced area to stage 20 work vehicles and a 40x8x8 Connex box. On occasion, vehicles not associated with Arbor Works, Inc. may be left on the premises after business hours.

The negotiated ground lease is two years at a fair market rate averaging $1,500.00 per month with an annual Consumer Price Index (CPI) adjustment every July 1st beginning on the second year of the lease and each July 1st thereafter.

Page 468 of 1393 ends

2 CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

This action 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.

STRATEGIC PLAN:

Infrastructure & Environment
FINANCIAL IMPACT:

The ground lease would provide $1,500.00 per month in revenue to the Airport Enterprise Fund.

ALTERNATIVE ACTION:

Alternatives include not approving the ground lease.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

Page 469 of 1393 ends

Reso No. ______ (CM)
Meeting Date: 062326 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING A TWO-YEAR GROUND LEASE

AGREEMENT BETWEEN THE CITY OF WATSONVILLE AND ARBOR
WORKS INC., FOR THE USE OF CITY OWNED PROPERTY LOCATED
AT THE APPROACH END OF RUNWAY 27, AND AUTHORIZING AND

DIRECTING THE CITY MANAGER TO EXECUTE SAME

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

1. Leasing property 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. Any improvements on the property will be subject to separate environmental analysis.

2. That the Lease for City owned property located at the end approach of Runway 27, between the City of Watsonville and Arbor Works, Inc. a corporation, a copy of which Lease is attached hereto and incorporated herein by this reference, is hereby approved.

3. That the City Manager is hereby authorized and directed to execute such Lease for and on behalf of the City of Watsonville with minor revisions that may be approved by the City Manager and the City Attorney.
*******************************

Page 470 of 1393 ends

In Process
GROUND LEASE BETWEEN CITY OF WATSONVILLE AND ARBOR WORKS,INC.

THIS GROUND LEASE ("Lease"), is made and entered into to be effective July 01, 2026(“Effective Date”) by and between the CITY OF WATSONVILLE, a municipal corporation ("City"), and ARBOR WORKS, Inc. ("Tenant").

THE PARTIES AGREE AS FOLLOWS:

1. Premises.

City does hereby rent and Tenant does hereby hire and take from City certain real property and if applicable, improvements, consisting of 10,000 square feet at the approach end of Runway 27, in the Watsonville Municipal Airport (“Premises”). The Premises are outlined in red on Exhibit "A." Tenant also has the right of ingress and egress to such Premises.

2. Term
a. The term of this Ground Lease shall be two (2) years, commencing July 1, 2026 and expiring on June 30, 2028 ("Lease Term"), at an agreed rent of approximately $0.15 per square foot per month at the sum of $1,500.00 (fifteen hundred dollars) per month. b. Rent is due and shall be paid in advance on the 10th day of each and every month during the term of this Lease, commencing July 1, 2026. Rent not received by the 10th of the month shall be assessed a ten percent (10%) late payment penalty. c. The rent shall be adjusted annually, every July 1
st beginning on the second year of
the lease and each July 1st thereafter using the rate of April to April change in the Consumer Price Index (CPI) for All Urban Consumers San Francisco-Oakland-San Jose, California. In no event will the annual rental increase be more than five percent (5%). d. If, on any rental adjustment date, there shall not exist a CPI in the same format as recited herein, the parties shall substitute the Consumer Price Index for a comparable index published by the Bureau of Labor Statistics or similar or successor governmental agency as may then be in existence and most nearly equivalent thereto (i.e.: the Wholesale Price Index). If the parties are unable to agree on a successor index in the event the aforesaid index is no longer reporting, then the parties shall refer the choice of the successor index to arbitration in accordance with rules of the American Arbitration Association.

3. Use.

The Premises shall be used as a staging area for no more than 20 work vehicles and one Connex box no larger than forty (40) feet by eight (8) feet by eight and one half feet (8 ½) . On occasion, vehicles not associated with the Tenant’s business may be left on the Premises after business hours. Hours of operation are 5:30am- 6:00pm Monday- Friday. The General Foreman of Arbor Works Inc. will have access to the gate attached to the Premises.

Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 471 of 1393 ends

In Process

Page 2 of 20 ends

4. Termination.

Both Parties shall have the right to unilaterally terminate this Lease at any time upon thirty (30) days written notice. The terminating Party shall provide written notice to the other Party of such termination to the address provided in Section 39 of this Lease.

5. Prohibited Uses.

The Premises shall not be used for any other use not expressly allowed in Section 3 of this Lease.

6. Improvements to Premises.

If any improvements are proposed by the Tenant, Tenant shall submit a written description of the proposed improvements to the Airport Director together with two sketches drawn to scale. The Airport Director will review the proposal and provide written comments with a recommendation and forward the same to the City Manager for review within 30 days.

7. Conditions of Construction.

Before construction is commenced on the Premises, and before any building materials have been delivered to the Premises by Tenant or under Tenant's authority, Tenant shall comply with all the following conditions or procure City’s written waiver of the conditions. City shall not unreasonably disapprove preliminary plans and specifications. a. Provide City the plans and specifications of the project and four (4) copies of the site plan.
b. Notify City of Tenant's intention to commence working on the improvement at least ten (10) days before commencement of any such work or delivery of any materials. City shall have the right to post and maintain on the Premises any notices of non-responsibility provided for under applicable law. c. Furnish City with a true copy of Tenant's contract with the general contractor and with evidence of the general contractor's financial condition for City's approval.

The contract shall give City the right, but not the obligation, to assume Tenant's obligations and rights under that contract if Tenant should default. d. Tenant shall comply with all applicable codes, ordinances, or regulations, and requirements for permits and approvals, including, but not limited to, a grading permit, building permit, zoning and planning requirements, and approvals from various governmental agencies.
e. Tenant shall require from the contractor: (i) certificates of insurance evidencing coverage for "Builder's risk," (ii) evidence of Worker's Compensation Insurance covering all persons employed in connection with the work and with respect to whom death or bodily injury claims could be asserted against City or the Premises, and (iii) evidence that contractor has paid or caused to be paid all premiums for the coverage described in this sub- paragraph and premiums Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 472 of 1393 ends

In Process

Page 3 of 20 ends

sufficient to assure maintenance of all insurance during the anticipated course of the work.

8. New Construction Completion Date.

Once work has begun on one area, Tenant shall with reasonable diligence manage all construction of improvements. If the Tenant fails to commence construction within two (2) weeks following execution of this Lease, the City may elect to terminate this Lease by five (5) days written notice.

9. Protection of City against Cost or Claim.

Tenant shall pay or cause to be paid the total cost and expense of all works of improvements, as that phrase is defined in the mechanic's lien law in effect at the place of construction when the work begins. No such payment shall be construed as rent. Tenant shall not suffer or permit to be enforced against the Premises or any part of it any mechanic's, materiel man’s, contractor's, or sub-contractor's lien arising from any work of improvement, however it may arise. However, Tenant may in good faith and at Tenant's own expense contest the validity of any such asserted lien, claim, or demand, provided Tenant has furnished the bond required in California Civil Code Section 3143. Tenant shall defend and indemnify City against all liability and loss of any type arising out of work performed on the Premises by Tenant, together with reasonable attorney's fees and all costs and expenses incurred by City in negotiating, settling, defending, or otherwise protecting against such claims.

10.Notice of Completion.

On completion of the work of improvement, Tenant shall file or cause to be filed a notice of completion. Tenant hereby appoints City as Tenant's attorney in fact to file the notice of completion on Tenant's failure.

11.Ownership of Improvements During Term.

All buildings and improvements constructed on the Premises by Tenant as permitted or required by this Lease shall, during this Lease Term, be and remain the property of Tenant; provided, however, that Tenant shall have no right to waste, destroy, demolish or remove the improvements except as expressly provided in this Lease; and provided, further, that Tenant's rights and powers with respect to the improvements are subject to the terms and limitations of this Lease. City and Tenant covenant for themselves, and all persons claiming under or through them, that the improvements are real property. All buildings and improvements existing on the Premises, as of the Effective Date are City's property, free of all claims to or against them by Tenant or any third person.

Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 473 of 1393 ends

In Process

Page 4 of 20 ends

12.Ownership of Improvements at Termination.

Except as specified in Section 12 of this Lease, all buildings and improvements placed or constructed on said Premises, as well as any and all other alterations, additions, improvements, and fixtures, except furniture and trade fixtures, made or placed in or on said Premises by Tenant or any other person, shall be considered part of the real property of said Premises and on expiration or sooner termination of this Lease, or the exercised option, shall remain on said Premises and become the property of City free and clear of any liens or encumbrances whatsoever and without the payment of any consideration therefore.

13.Removal of Fixtures.

At the normal expiration of the Lease Term, provided Tenant is not in default, Tenant shall have the right to remove any and all trade fixtures, provided all resultant injuries to the Premises and remaining improvements, except for ordinary wear and tear, are completely remedied and Tenant complies with City's reasonable requirements respecting the resultant appearance. Any such items not so removed within thirty (30) days of termination shall become the property of City free and clear of any liens or encumbrances whatsoever and without payment of consideration therefore.

14.No Subordination.

City shall not subordinate the fee title to the Premises to any security transaction to enable Tenant to obtain financing for the new improvements. The Premises are now and shall remain free and clear of any liens, encumbrances or other Tenant obligations to third person.

15.Utilities.

If available and desired by the Tenant, the Tenant shall pay for all water, gas, heat, light, power, telephone service, garbage disposal, storm and sanitary sewer services, and all other services supplied to the Premises, including installation and connection of such services from the main source thereof, including City meters, and hold harmless the City therefore.

16.Possessory Interest Tax.

Pursuant to Section 107.6 of the State Revenue and Taxation Code the City hereby gives notice that the property interest to Tenant under this Lease may be subject to property taxation as a possessory interest and the Tenant acknowledges that it shall be subject to payment of property tax if a possessory interest tax is levied on the property interest.

17.Alterations and Additions.

Except as otherwise provided by Section 5 of this Lease, Tenant shall not make Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 474 of 1393 ends

In Process

Page 5 of 20 ends

any alterations or improvements to or erect any additional structures on the Premises without prior written consent of City. Any alterations or additions approved by City shall be constructed at the sole expense of Tenant.

18.Compliance with rules, regulations and laws.

In the use and occupancy of the Premises and in the conduct of all business, activities and transactions thereon, Tenant will comply with all applicable laws, ordinances, rules, regulations and orders of the City or any governmental subdivision, body or authority, including all federal, state and municipal laws and ordinances and all rules and regulations of the Federal Aviation Agency and the City of Watsonville rules and regulations concerning the operations of the Watsonville Municipal Airport and environs.

19.Storage of Materials, Equipment.

No materials, supplies, products, equipment or other personal property shall be stored or permitted to remain on any portion of the Leased Premises without City's prior written consent. Tenant shall store personal property items, supplies, materials and combustibles inside the buildings, if the buildings are situated on the property in a safe, neat and sanitary manner. Tenant shall provide or cause to be provided adequate enclosures, screened areas and/or suitable covered metal receptacles within the Premises for the short-term accumulation and storage of solid waste, such as rubbish, trash, garbage, sludge, discarded machinery or parts and any other solid industrial wastes. Such enclosures and/or screened areas shall be designed in such a way as to prevent, odors, fumes, attraction of pests, and dispersal of wastes due to wind or water runoff, and shall be serviced regularly by qualified waste removal and disposal services.

20.Environmental Considerations.
a. Tenant shall not commit, or suffer to be committed, any waste upon the Premises, or any nuisance or other act or thing, which may disturb the quiet enjoyment of the use of Watsonville Municipal Airport or surrounding property. Tenant shall ensure that no untreated liquid waste from any type of operation will enter the airport storm drainage system or sanitary system.
b. Tenant shall at all times comply with all applicable laws, rules and regulations of federal, state or local governmental agencies, including, but not limited to, the City of Watsonville, Santa Cruz County, and responsible Regional Air and Water Quality Control Boards. Tenant shall not permit any activity which directly or indirectly produces objectionable or unlawful amounts or levels of air pollution (gases, particulate matter, odors, fumes, smoke, or dust), water pollution, noise, glare, heat emissions, electronic or radio interference with navigational and communication facilities for the operation of the Airport and for its use by aircraft, trash or refuse accumulation, vibration, prop-wash, or jet blast, or which is hazardous or dangerous by reason or risk of explosion, fire or Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 475 of 1393 ends

In Process

Page 6 of 20 ends

harmful emission. Any waste oil storage tanks shall be in approved containers and in accordance with environmental and fire protection regulations. c. Hazardous Substances. The term "Hazardous Materials" shall mean any toxic substance, hazardous substance, hazardous material, or hazardous waste, pollutant or contaminant which is or during the term of this Lease becomes regulated by any local governmental authority, the State of California, or the United States government, including, but not limited to any, material or substance which is defined as a "hazardous waste," "extremely hazardous waste" or "restricted hazardous waste" under local, State, or federal law and as determined by the Fire Department. Except in strict compliance with all government approvals, applicable laws and regulations pertaining to Hazardous Materials, and in accordance with the provisions of this Lease, Tenant shall not cause or permit the presence, use, handling, generation, emission, release, discharge, storage, or disposal of any Hazardous Materials on, under, in or about the Premises, excepting the presence of any Hazardous Materials on, under, in or about the Premises as of the date of this Lease or the migration to or seepage of Hazardous Materials from surrounding or adjacent property; and shall not cause or permit the transportation of any such materials.

21.Hazardous Materials to or from the Premises.
a. Tenant shall at all times notify City of any Hazardous Materials present, used, generated, handled, emitted, released, discharged, stored or disposed of on or from the Premises. Notwithstanding the foregoing, notice shall not be required for Hazardous Materials present on the Premises in reasonable quantities which are commonly used in machining facilities including, but not limited to, cleaning materials, motor oils, and hydraulic fluids provided such Hazardous Materials are used and disposed of in accordance with law, or for materials which are first designated as Hazardous Materials after expiration of the term of this Lease. Tenant shall also institute operating procedures designed to handle Hazardous Materials consistent with prudent industry practice, including evidence of a licensed agent removal service. City shall have the right to inspect the Premises on 24-hours prior notice for compliance with the provisions of this Section.
b. Indemnification by City. City shall indemnify, protect, defend, and hold harmless Tenant and Tenant's successors and assigns, officers, directors, employees, agents, subtenants and assignees, from and against all liability, and foreseeable consequential damages, penalties, expenses and costs of any required or necessary remediation, repair, removal, clean up or detoxification, of the Premises and surrounding properties, and from and against the preparation of any clean up, remediation, closure or other required plans, whether such action is required or necessary during or following the term of this Lease, to the full extent that the same is attributable to the use, handling, generation, emission, release, storage, discharge or disposal of hazardous material by City, its agents, employees, and contractors.

Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 476 of 1393 ends

In Process

Page 7 of 20 ends

21. Repairs.
a. If the Premises includes a building(s) the City shall maintain the exterior of the Premises, including outside walls and roof, except in the event that repairs or replacements are necessary thereto because of negligence or misconduct of the Tenant or if Tenant fails to notify City in writing within three (3) days of the need to repair. b. Tenant shall maintain Premises, including, but not limited to, interior plumbing (i.e., sanitary sewer obstructions), interior walls, doors, hardware, alarms, internal lights and fixtures, heating, electrical systems (including internal lights and fixtures) etc., in as good order, condition and repair as they shall be upon the commencement of the Lease Term. Any addition to the electrical system installed by Tenant shall remain the responsibility of the Tenant. Tenant shall keep drainage ditches and gutters free of debris.

22. Freedom from Liens.

Tenant shall not create or permit to be created or to remain, and covenants to remove and discharge promptly, at its cost and expense, all liens, claims, stop notices, encumbrances and charges upon the Premises, or Tenant's leasehold interest therein which arise out of the use or occupancy of the Premises by Tenant or anyone using or occupying the Premises with the consent or sufferance of Tenant, or by reason of labor or materials furnished or claimed to have been furnished to Tenant for any construction, alteration, addition or repair of any part of the Premises. Tenant shall give City fifteen (15) day’s notice prior to commencing any work on the Premises, so that City shall have a reasonable time within which to post notices of non-responsibility.

23. Holding Over.

If Tenant shall hold possession of the Premises after the Lease Term ends, Tenant shall become a Tenant from month to month at the rental and upon the terms herein specified and shall continue to be such tenant until the tenancy shall be terminated by City on thirty (30) day’s notice or until Tenant shall have given at least thirty (30) day’s notice of Tenant's intention to terminate the tenancy. The provisions of this Lease, so far as applicable, shall govern such tenancy, except that the monthly rent for such tenancy shall be the same as the last full month's rental rate.

24. Abandonment.

Tenant shall not vacate or abandon the Premises at any time during the Lease Term. If Tenant abandons, vacates or surrenders the Premises or be dispossessed by process of law, or otherwise, any personal property belonging to Tenant and left on the Premises shall be deemed to be abandoned and at the option of City shall become City's property free from all claims of Tenant. In the event Tenant abandons the Premises, City shall have the option to terminate this Lease by giving Tenant notice of belief of abandonment pursuant to California Civil Code Section 195 1.3 or City has the remedy described in California Civil Code Section 1951.4, i.e., City may continue the Lease after breach and abandonment and recover rent as it becomes due, if Tenant has the right to Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 477 of 1393 ends

In Process

Page 8 of 20 ends

sublet or assign, subject to reasonable limitations as provided in paragraph 25.

25. Assignment or Subletting.
a. Tenant shall not assign or encumber any interest in this Lease or in the Premises, or sublease all or any part of the Premises, or allow any other person or entity (except Tenant's authorized representatives) to occupy or use all or any part of the Premises, without City's written consent, and consent to one assignment or sublease shall not be construed as consent to any subsequent assignment or subleasing. b. If Tenant is a corporation or partnership, any dissolution, merger, consolidation or other reorganization of Tenant or the sale or transfer of controlling percentage of the capital stock of Tenant or the sale of twenty five percent (25%) of the value of the assets of Tenant shall be deemed a voluntary assignment. The phrase "controlling percentage" means the ownership of and the right to vote stock possessing at least twenty five percent (25%) of the total combined voting power of all classes of Tenant's capital stock issued outstanding and entitled to vote for the election of directors. City shall not unreasonably withhold consent, but City may nevertheless condition consent upon such factors as the identity, reputation, financial worth and stability and operating ability of any proposed assignee or subtenant. Unless prior written consent of City shall have been obtained, any transfer, or attempted assignment or transfer, of this Lease or any interest therein, or any subletting, either by voluntary or involuntary act of Tenant or by operation of law or otherwise, shall at the option of the City terminate this Lease, and any such purported assignment, transfer or subletting without such consent shall be null and void. c. Assignment.

1. Tenant shall not have the right to assign this Lease, except by Leasehold mortgage, without the written consent of City, which shall not be unreasonably withheld.

If Tenant desires to assign the Lease, Tenant shall comply with the following procedures:
(a) Tenant shall give City at least sixty (60) days prior written notice of its desire to assign the Lease.
(b) Tenant shall simultaneously provide City with the assignee's name, business organization, financial statement, and other documentation as may be requested by City.
(c) Tenant shall provide City with a true copy of the proposed assignment and the proposed assignee shall, in recordable form, expressly assume all the covenants and conditions of this Lease.
(d) Tenant shall provide City with copies of any financial agreements, schedule of payments, mortgage or encumbrance on the Leasehold estate. (e) Tenant shall pay City at the time the request to assign is submitted, a deposit of Five Thousand Dollars ($5,000.00) to offset City's expenses, including attorney's fee, in evaluating and documenting the assignment. City shall charge said deposit at the then current hourly rate for staff time charged to the Airport. Any balance of said deposit shall be refunded to Tenant, and any excess amount charged, excluding said deposit, shall be paid by Tenant.

Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 478 of 1393 ends

In Process

Page 9 of 20 ends

2. City and Tenant hereby deem it reasonable for the City to refuse to consent to a proposed assignment in the following circumstances:
(a) City may object to any proposed assignment if, in the City's sole opinion, the proposed assignee is not a qualified assignee in terms of financial strength, business experience or reputation or the ability to operate the fixed base operation and provide the required services in a manner consistent with the purposes for which this Lease was granted.
(b) City may object on any other reasonable grounds.

3. The effective date of the assignment shall not occur until sixty (60) days after the Tenant's notice of the proposed assignment unless, within that time, City gives notice of a valid objection or refusal of consent as set forth in subsection A. (3) hereof. If City gives notice of a valid objection and withholds consent, the Lease will not be assigned. d. Subletting.

1. It is understood and agreed that, from time to time, Tenant may request City's permission to sublet portions of the Premises and City shall not unreasonably withhold consent, provided:
(a) Each sublease made shall be subject and subordinate to the right of the City and the provisions of each sublease shall conform to the provisions of this Lease as far as practicable.
(b) The sublease does not affect an assignment of the Lease as prohibited elsewhere.
(c) Tenant includes the following information with its request to sublease, the name, address, a true copy of the proposed sublease, and appropriate documentation as evidence the subtenant is qualified to conduct business on the Airport and such subtenant will provide the type of development and services required under the provisions of this Lease.
(d) Subtenant provides insurance coverage(s) as appropriate, in accordance with Lease provision(s), INSURANCE, the same as if the subtenant were a lessee.

2. If Tenant is in the default of monetary obligations to City pursuant to this Lease, Tenant immediately and irrevocably assigns to City, as security for Tenant's obligations under this Lease, all rent from any subletting of all or a part of the Leased Premises as permitted by this Lease, and City, as assignee and as attorney- in-fact for Tenant, or a receiver for Tenant appointed on City's application, may collect such rent and apply it toward Tenant's obligations under this Lease; except that, until the occurrence of an act of default by Tenant, Tenant shall have the right to collect such rent.

It is understood and agreed by the parties hereto that the above assignment provisions do not apply to heirs by will.

26. Signs, Posters, Buildings and Towers.
a. No advertising signs, posters or similar devices shall be erected, displayed or maintained in, on, about or above the Premises or the structures thereon without a sign permit and the written approval of the Airport Manager.

Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 479 of 1393 ends

In Process

Page 10 of 20 ends

b. No structures erected on the Premises shall exceed the height limit fixed by any City zoning ordinance or regulations of the Airport or Federal Aviation Authority. Tenant in its operations shall not unreasonably interfere with the property, interests, operations or activities of the City or of other tenants of the City.

27. Taxes.
a. Tenant will pay all fees, taxes, assessments and licenses levied, imposed or required by any governmental subdivision, body or authority on or in respect to any improvements or property placed on the Premises by Tenant or any person with its permission
b. The use, occupancy or possessory rights of Tenant in the Premises includes but is not limited to:

1. Any business, activity or transaction conducted thereon by Tenant;

2. City license and permits;

3. Commercial Operator Permit fee.

28. Payment of Rent and Services.

Notwithstanding any other provision of this Lease, all rents shall be paid to City of Watsonville, c/o Finance Department, by delivering or mailing to the address provided in Section 39.

29. Security Deposit.
a. On execution of this Lease, Tenant shall deposit the sum of Seven Hundred and Fifty Dollars ($750.00) representing one (1) month’s rent in cash as security for the faithful performance of the terms, covenants and conditions of this Lease. b. If Tenant is in default, City can use the security deposit or any portion of it, to cure the default or to compensate City for all damages or loss sustained by City resulting from Tenant's default if the notice requirements have been observed. Tenant shall immediately, on demand, pay to City a sum equal to the portion of the security deposit expended or applied by City as provided in this paragraph so as to maintain the security deposit in the sum initially deposited. Upon final accounting by City, any balance of said deposit shall be refunded to Tenant.

30. Indemnification by Tenant.
a. Tenant shall indemnify, protect, defend, and hold harmless City and City's successors and assigns, officers, directors, employees, agents, subtenants and assignees, from and against all liability, and foreseeable consequential damages, penalties, expenses and costs of any required or necessary remediation, repair, removal, clean up or detoxification, of the Premises and surrounding properties, and from and against the preparation of any clean up, remediation, closure or other required plans, whether such action is required or necessary during or following the term of this Lease, to the full Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 480 of 1393 ends

In Process

Page 11 of 20 ends

extent that the same is attributable to the use, handling, generation, emission, release, storage, discharge or disposal of hazardous material by Tenant, its agents, employees, and contractors.
b. The indemnification provisions of the foregoing shall survive the termination of this Lease.
c. City makes no representation or warranty, express or implied, as to the physical condition of the Premises, including, but not limited to the condition of the exterior or interior of the structure, ground, soil, surface water or groundwater. the geology, the presence of known and unknown faults, the presence of any Hazardous Materials or other kinds of contamination or pollutants of any kind in the air, soil, groundwater or surface water, or the suitability of the Premises for the construction and use of the improvements thereon.

31. Waiver of Damages and Indemnification.

City shall not be liable to Tenant for any injury or damage that may result to any person or property by or from any cause whatsoever, except as results from acts of the sole negligence on the part of City, its agents, servants, employees or invitees. Without limiting the generality of the foregoing waiver, it is expressly extended to injury or damage caused by water leakage of any character from the roof(s), wall(s), basement or any part of the property, or caused by gas, oil, electricity or any other cause in or about the Premises or the building(s). Tenant agrees to hold City harmless from, and to defend City against, any and all claims or liability for any death of for injury to any person or damage to any property, whatsoever, occurring in, on or about the Premises.

32. Hold Harmless.
a. Tenant shall save, protect, indemnify, and hold harmless City, its elective and appointive boards, commissions, officers, agents, and employees from any and all claims, cost or liability of any kind allegedly suffered, incurred or threatened, including personal injury, death, property damage, inverse condemnation, or any combination of these, foreseeable or unforeseeable, arising directly or indirectly from or connected with any acts performed pursuant to this Lease, or any omission to perform, including, but not limited to, claims, costs or liability resulting from: (I) The conduct, negligent or otherwise, of Tenant, its subtenant(s), assignee(s), or any officer(s), agent(s) or employee(s) of one or more of them; (2) The joint conduct of the City and Tenant, regardless of whether the City is concurrently, active or passively negligent or not negligent at all; or (3) The sole concurrent conduct of any other person or entity. b. The above promise and agreement in this section is not conditioned or dependent on whether Tenant or City has prepared, supplied or approved any plan(s) or specification(s) in connection with this Lease, or has insurance or other indemnification covering any of these matters, or that the alleged damage resulted partly from any negligent or willful misconduct of City.
c. This Lease is made upon the express condition that City is to be free from all Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 481 of 1393 ends

In Process

Page 12 of 20 ends

liability and claim for damages by reason of any injury to any person or persons including, Tenant, or property of any kind whatsoever and to whomsoever belonging, including Tenant, from any cause or causes whatsoever while in, upon, or in any way connected with the Premises during the term of this Lease or any extension hereof or any occupancy hereunder, Tenant hereby covenanting and agreeing to indemnify and save harmless City from all liability, loss, cost, attorneys fees, and obligations on account of or arising out of any such injuries or losses however occurring.

33. Breach.

After service of ten (10) days written notice thereof by City on Tenant any one of the following shall constitute a breach of this Lease by Tenant:
a. The appointment a general assignment by Tenant for the benefit of creditors, or of a Receiver to take possession of all or substantially all of the assets of Tenant, or b. Period of twenty (20) days, or
c. A default in the performance of any other covenant or condition of this Lease on the part of Tenant to be performed for a period of twenty (20) days.

34. Insurance.
a. During the rental term, Tenant, at Tenant's sole expense, shall secure and maintain in force such policies of insurance as will protect it from claims for damages or injury resulting from bodily injury, including death, and for the loss or damage to property of others which may arise from operations of this Lease. Such insurance shall contain statements that:

1. these policies shall also apply to City, as an Additional Named Insured;

2. the insurance afforded by these policies applies severally as to each insured, except that the inclusion of more than one insured shall not operate to increase the limit of the company's liability, and the inclusion hereunder of any person or organization as an insured shall not affect any right which such person or organization would have as a claimant if not so included;

3. the insurance shall be primary insurance over any other insurance carried by City, which other insurance shall be considered excess only;

4. the above policies specifically include coverage indemnifying City as set forth in this Lease;

5. the policies may not be canceled, nor the coverage reduced until thirty (30) days after a written notice of such cancellation or reduction in coverage is delivered to City at the address contained herein;

6. the insurance companies named herein waive any all rights of subrogation against City. Such liability insurance shall be written with limits of at least Two Million Dollars ($2,000,000.00), combined single limits, and shall be written by companies acceptable to City.

7. The limit of liability insurance coverage shall be adjusted commensurate with inflation and other liability factors upon adoption of resolution of the City Council Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 482 of 1393 ends

In Process

Page 13 of 20 ends

of City. Certificates of Insurance evidencing the above obligations shall be delivered to City on prior commencement of operations covered by this agreement. b. City, at Tenant's cost, shall cooperate fully with Tenant to maximize any recovery following an insured casualty. All policies of fire and extended coverage or other casualty insurance required by subparagraphs (e) and (g) below shall provide that proceeds there under shall be paid to City and Tenant as their interests may appear. c. All policies required to be maintained by Tenant pursuant to the terms of this Lease shall be issued by companies authorized to do business in the State of California with a financial rating of at least "A" in the most recent edition of Best Insurance Reports. Tenant shall pay premiums therefore and shall deliver annually to City Certificates of Insurance that such policies are in effect. If Tenant fails or refuses to procure or maintain the insurance coverage required hereunder, or fails or refuses to furnish City with proof that coverage has been procured and is in full force and paid for, City shall have the right, at City's election and without notice to Tenant, but without any obligation to do so, to procure and maintain such coverage. Tenant shall reimburse City on demand for any premiums City so pays in connection with such procurement. d. Fire Insurance Required if Structures are within Ground Leased: During the Lease Term, Tenant, at Tenant's sole expense, shall insure for fire and extended coverage risks all buildings, personal property, improvements, and alterations in, on, or about the Leased Premises. Such insurance shall be in an amount not less than eighty percent (80%) of insurable, full replacement cost of such buildings and improvements, and shall include vandalism and malicious mischief endorsements. Said fire insurance policies shall contain loss payable endorsements in favor of the parties as their respective interests may appear hereunder. The CITY OF WATSONVILLE shall be named as additional insured in such policy or policies.
e. Fire or Casualty:

1. Destruction of Tenant Owned Building. In the event of extensive damage (greater than fifty percent (50%)) to or destruction of buildings or other improvements on the Leased Premises owned by Tenant as provided in Section 11 of this Lease ("Tenant Improvements"), Tenant shall determine whether to repair or replace the Tenant Improvements. If it is determined to repair or replace the Tenant Improvements, the proceeds of any insurance policy paid on account of such damage or destruction shall be used to defer the cost of repairing or replacing the Tenant Improvements. Tenant shall complete all repairs within a reasonable time. If it is determined not to repair or replace the Tenant Improvements, Tenant may terminate this Lease upon written notice to City within thirty (30) days of such damage or destruction. If Tenant terminates this Lease pursuant hereto, after deducting any proceeds payable to Tenant's lender pursuant to the following paragraph, the remaining proceeds of any insurance policy paid on account of such damage or destruction shall be distributed to City and Tenant pursuant to the following formula: City's share shall be the product of the amount of the remaining proceeds multiplied by a fraction, the numerator which is the number of months since the commencement date of this Lease until the date of the casualty causing such damage or destruction, and the denominator of which is four hundred and twenty (420). Tenant's share shall be the excess of the remaining proceeds after subtracting the City's share. In Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 483 of 1393 ends

In Process

Page 14 of 20 ends

the event of termination of the Lease pursuant to this Section 33 (e) (l), Tenant shall remove the Tenant Improvements and, restore the City owned building to its prior condition at Tenant's sole cost and expense prior to the date of termination of the Lease.

2. All fire and extended coverage insurance policies insuring the Tenant Improvements may have a loss payable clause in favor of any lender of Tenant, including, but not limited to, any mortgagee of Tenant, as such lender's interest may appear.

3. Destruction of City Owned Premises. If during the term of this Lease the City owned Premises, as provided in Section 11 of this Lease, shall be damaged or destroyed to the extent of fifty percent (50%) of its valuation or at a repair cost estimated by the City Building Official to exceed the sum of Twenty Five Thousand Dollars ($25,000.00) by fire, the elements, or any other cause, then this Lease shall, at City's option, cease and become null and void from the date of such damage, or destruction, and Tenant shall immediately surrender the entire Premises to City and shall pay rent only to the time of such surrender.

4. If the City owned Premises shall be damaged by fire, or other cause, so as to be capable of being repaired within a reasonable time, City shall have the option to repair the same and during the time that the repairs are being made, City shall remit to Tenant a just and fair portion of the rent according to the nature of the damage sustained and according to the extent that Tenant is deprived of the use of the City owned Premises.

Should the estimated time to repair damage exceed one hundred twenty (120) days, the Tenant may, at his option, terminate, this Lease. In such event both parties shall be released from further obligations under the terms of this Lease. f. Workers' Compensation: Tenant, at Tenant's sole expense, must obtain and maintain workers' compensation insurance covering all its employees, and said insurance must be kept in force during the entire term of this Lease. g. Notice: Each party hereto shall give to the other prompt and timely notice of any claim made or suit instituted coming to its knowledge which in any way directly, contingently or otherwise, affects or might affect either, and both shall have the right to participate in the defense of the same to the extent of its own interest.

35. Litigation Expenses.

If either party shall bring an action against the other by reason of the breach of any covenant, warranty or condition hereof, or otherwise arising out of this Lease, whether for declaratory or other relief, the prevailing party in such suit shall be entitled to its costs of suit and reasonable attorney fees, which shall be payable whether or not such action is prosecuted to judgment. "Prevailing Party" within the meaning of this paragraph shall include without limitation a party who brings an action against the other after the other's breach or default, if such action is dismissed upon the other's breach or default, if such action is dismissed upon the other's payment of the sums allegedly due or performance of the covenant's allegedly breached, or if the plaintiff obtains substantially the relief sought by it in the action.

Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 484 of 1393 ends

In Process

Page 15 of 20 ends

36. Surrender of Premises.

Tenant agrees to surrender the Premises and any addition thereto at the termination of the tenancy herein created in the same condition as the Premises were in at the beginning of the tenancy or at the time of completion of the improvements as the case may be, reasonable use and wear thereof and damage by act of God or the elements excepted. The voluntary or other surrender of this Lease by Tenant or a mutual cancellation thereof shall not work a merger, and shall, at the option of City, terminate all or any existing subleases or sub tenancies, or may, at the option of City, operate an assignment to City of any or all such sublease or sub tenancies.

37. Waiver.

Any waiver, expressed or implied, by either party of any breach by the other party of any agreement, term or condition of this Lease shall not be, or be construed to be, a waiver of any subsequent breach of a like or other agreement, term of condition hereof; and the acceptance of rent hereunder shall not be, or be construed to be, a waiver of any breach of any agreement, term or condition of this Lease, except as to the payment of rent so accepted. The rights and remedies of either party under this Lease shall be cumulative and in addition to any and all other rights and remedies which either party has or may have.

38. Quiet Enjoyment.

City covenants and warrants that upon Tenant's paying the rent and observing and performing all of the terms, covenants, and conditions on Tenant's part to be observed and performed hereunder, Tenant shall and may peaceably and quietly enjoy the Premises hereby demised, subject nevertheless to the terms and conditions of this Lease.

39. Notices.

All notices, consents, waivers or other communications which this Lease requires or permits either party to give to the other shall be in writing and shall be served personally or delivered by registered or certified mail, return receipt requested, made upon or addressed to the respective parties as follows:

To City: To Tenant:

City Clerk
City of Watsonville
275 Main Street, Suite 400
Watsonville, CA 95076
Karla Wahlgren
Arbor Works, Inc.
40266 Junction Drive
Oakhurst, CA 93644
or such other address as may be contained in a notice from either party to the other given pursuant to this section. Notice of registered or certified mail shall be deemed to be given forty-eight (48) hours from the time of postmarking if mailed within the United States (excluding Alaska).

Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 485 of 1393 ends

In Process

Page 16 of 20 ends

40. Recordation.

Neither party, without the consent of the other, shall cause or permit the original nor any copy of this Lease to be recorded, filed or published in any public place.

41. Tenant to Assume All Unknown Expenses.

Notwithstanding the existence of a provision therefore in this Lease, Tenant shall assume, pay and be obligated for any and all costs and expenses toward the operation, protection, maintenance of the Premises, known or unknown, expressed or unexpressed, it being the intention of the parties for this to be a triple net lease to City.

42. Right of City to Enter for Inspection.

City shall have the right to enter upon the Premises at all reasonable times during the term of this Lease for the purpose of making any inspection it may deem expedient to the proper enforcement of this Lease.

43. Nondiscrimination
Tenant hereby covenants that Tenant in its use of the Premises and any and all structures, buildings and improvements located here on shall conduct the fixed base operation or any other activity hereafter authorized by the City on the Premises on a nonexclusive and non-discriminatory basis in all respects with regard to any person, firm or group of persons. Tenant shall not act in any manner prohibited by Part 15 of the Federal Aviation Regulations and further agrees to be nondiscriminatory also with respect to price or cost of services or goods and in every other fashion.

44. Enforcement of Nondiscrimination Clause.

City shall have the right to take such action against the Tenant as the United States Government may direct or request to enforce the terms of the preceding paragraph on behalf of the United States Government or on behalf of any of its citizens or the City itself.

45. Other Operations.

It is understood that the use authorized at the Watsonville Municipal Airport by this Lease is not given to Tenant exclusively but may be given to any other Tenant at the Airport at the sole discretion of the City.

46. Condemnation.

If the whole or any substantial part of the Premises shall be taken by any paramount public authority under the power of eminent domain then the term of this Lease shall cease as to the part so taken from the date the possession of that part shall be taken for any public purpose, and from that day Tenant shall have the right either to Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 486 of 1393 ends

In Process

Page 17 of 20 ends

cancel this Lease or to continue in the possession of the remainder of the Premises under the term herein provided, except that the square foot rental shall be reduced in proportion to the amount of the Premises taken. Damages awarded for such taking shall be apportioned between the City and Tenant in a ratio relating to the number of years expired and remaining in the Lease Term between City and Tenant respectively; provided, however, that City shall not be entitled to any portion of the award made for loss of business installation or improvements belonging to Tenant.

47. Nondiscrimination- (FAA, MBE, DB Requirements).
a. The Tenant, for itself, its heirs, personal representatives, successors in interest, and assigns, as a part of the consideration for this Lease, does hereby covenant and agree as a covenant running with the land that in the event facilities are constructed, maintained, or otherwise operated on the Premises for a purpose for which a Department of Transportation (DOT) program or activity is extended or for another purpose involving the provision of similar services or benefits, the Tenant shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally- Assisted Programs of the Department of TransportationEffectuation of Title VI of the Civil Rights Act of 1964, and as such Regulations may be amended.
b. The Tenant for itself, its personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby further covenant and agree as a covenant running with the land that: (a) no person on the grounds of race, color or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of facilities; (b) that in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subject to discrimination; (c) that the Tenant shall use the with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 2 1, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as such Regulations may be amended.
c. Tenant shall furnish its accommodations and/or services on a fair, equal and not unjustly discriminatory basis to all users thereof and it shall charge fair, reasonable and not unjustly discriminatory prices for each unit or service; PROVIDED, THAT the Tenant may be allowed to make reasonable and nondiscriminatory discounts, rebates or other similar type of price reductions to volume purchasers. d. Tenant shall insert the provisions of this section in any lease agreement or contract by which Tenant grants a right of privilege to any person, firm or corporation to render accommodations and/or services to the public on the Premises.

Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 487 of 1393 ends

In Process

Page 18 of 20 ends

48. Remedy for Discrimination.
a. In the event of breach of any of the nondiscrimination covenants identified in Paragraph 48, City shall have the right to terminate this Lease and to reenter and repossess the Premises and the facilities thereon, and hold the same as if this Lease had never been made or issued. The provision does not become effective until the procedures of 49 CFR Part 21 are followed and completed including expiration of appeal rights. b. Non-compliance with paragraph 51 shall constitute a material breach thereof and in the event of such non-compliance City shall have the right to terminate this Lease and the estate hereby created without liability therefore or at the election of the City or the United States either or both Governments shall have the right to judicially enforce paragraph 48.

49. Affirmative Action.

Tenant assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E, to insure that no personal shall be on the grounds of race, creed, color, national origin, or sex be excluded from participating in any employment activities covered in 14 CFR, Subpart E. Tenant assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by such subpart. Tenant assures that it will require that its covered by such subpart. Tenant assures that it will require that its covered sub organizations provide assurances to the Tenant that they similarly will undertake affirmative action programs and that they will require assurances from their suborganizations, as provided by 14 CFR Part 152, subpart 2, to the same effect.

50. Subordination to Future FAA Agreements.

This Lease shall subordinate to the provisions and requirements of any existing or future agreement between the City and the United States, relative to the development, operation or maintenance of the Airport.

51. Notice to Federal Aviation Administration.

Tenant shall comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations in the event of future construction of a building planned for the Premises, or in the event of any planned modification or alteration of any present or future building or structure situated on the Premises.

52. Non-Exclusive Right.

It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act.

Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 488 of 1393 ends

In Process

Page 19 of 20 ends

53. Terms.

All the provisions of this Lease shall be deemed and construed to be "covenants" as though the words imported such covenants were used in each separate paragraph hereof, except when expressed as conditions.

54. Governing Law.

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

55. Binding Effect.

This Lease and the covenants and agreements herein contained shall bind and inure to the benefit of the parties hereof, their heirs, successors, executors, administrators, and when permitted assigns.

56. Time is of the Essence.

Time is of the essence regarding this Lease.

57. Consent.

Whenever consent or approval of either party is required, that part shall not unreasonably withhold such consent or approval.

58. Corporate Status.

If either party is a corporation, that party shall deliver to the other party on execution of this Lease, a certified copy of a resolution of its governing body authorizing the execution of this Lease and naming the officers that are authorized to execute this Lease on behalf of the corporation.

59. Brokers.

Each party represents that it has not had dealings with any real estate broker, finder, or other party, with respect to this Lease in any manner. Each party shall hold harmless the other party from all damages resulting from any claims that may be asserted against the other party by any broker, finder, or other person, with whom the other party has or purportedly has dealt.

60. Exhibits.

All exhibits referred to are attached to this Lease and incorporated by reference.

61. Entire Agreement.

This Lease contains the entire agreement of the parties, and by signing this Lease Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 489 of 1393 ends

In Process
Docusign Envelope ID: A81FF1DF-43D3-49BE-B125-66A3678F6FA1

Page 20 of 20 ends

they agree that there is no other written or oral agreement, promise, or representation between them respecting the Premises. This Lease shall bind and inure to the benefit and advantage of the assigns of City, and of the heirs, executors, administrators, and when permitted hereunder the assigns of Tenant.

IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first above written.

CITY OF WATSONVILLE
a municipal corporation
ARBOR WORKS, INC.
a corporation
By:

Tamara Vides, City Manager
By:

Karla Wahlgren, SVP & Chief of Staff
Date: Date:

Attest:

By:

Irwin Ortiz, City Clerk
Date:

Approved as to form:

By:

Samantha Zutler, City Attorney
Date
Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303 6/8/2026 | 2:07 PM PDT

Page 490 of 1393 ends

In Process
Docusign Envelope ID: 7CD5A25B-561C-8644-804C-411A245DD303

Page 491 of 1393 ends

Exhibit A

Page 1 of 2 ends

Page 492 of 1393 ends

Exhibit A

Page 2 of 2 ends

Page 493 of 1393 ends

Adopt a resolution approving the Santa Cruz County Safety Action Plan.

BACKGROUND:

On January 16, 2018, Council approved Resolution No. 7-18 (CM), adopting the goal of Vision Zero – to eliminate traffic fatalities and serious injuries on street with the City by 2030 and directed staff to develop a Vision Zero Action Plan that prioritizes the development of safe roadways and the highest level of safety for all road users through new policies, systems and infrastructure improvements for pedestrians, bicyclists and motorists.

On January 9, 2019, Council received a Draft Action Plan and directed staff to finalize the Plan. On February 25, 2020, Council approved Resolution No. 21-20 (CM), approving the City of Watsonville Safe Streets Save Lives Vision Zero Action Plan 2020. On April 13, 2021, Council approved Resolution No. 100- 21 (CM), accepting and approving the City of Watsonville Vision Zero Action Plan 2021. The Plan continued to call for the development of safe roadways. It also called for staff to identify and secure consistent funding for these projects.

The 2021 Bipartisan Infrastructure Law (Infrastructure Investment and Jobs Act) created the Safe Streets and Roads for All (SS4A) program, which was officially launched and established in May 2022.

Administered by the Federal Highway Administration’s (FHWA), the SS4A Program provides funding for local and regional agencies to develop and implement roadway safety projects. The SS4A Program shares many of the same guiding principles with Vision Zero and SS4A funding will help implement improvements identified in the Watsonville Vision Zero Action Plan. The funding can be used in two ways. One is to

Page 494 of 1393 ends

2 develop a Safety Action Plan (SAP). The other is to construct roadway safety projects. Agencies must have an SS4A-compliant SAP to apply for construction funding. Agencies without an SS4A-compliant SAP cannot apply for SS4A construction funding.

DISCUSSION:

In 2023, Watsonville successfully partnered with the County of Santa Cruz and the City of Scotts Valley on an SS4A Grant Application to prepare an SAP for all three agencies. The county received and administered the grant, while Watsonville and Scotts Valley worked collaboratively with the county to develop the SAP.

While a single SAP document was prepared, each chapter has separate sections for each of the three partnering agencies.

The SS4A program seeks to prevent roadway deaths and serious injuries through data-driven planning and implementation. To achieve this, the SAP evaluated recent crash trends using data from the California Highway Patrol’s Statewide Integrated Traffic Records System (SWITRS). The analysis identified priority locations, corridors, and systemic safety needs across the unincorporated County and participating cities.

Based on this analysis and informed by input from agency staff and a robust public and stakeholder engagement process, the SAP established a set of engineering improvements, policy and program recommendations, and implementation strategies specific to each agency.

Outreach included bilingual online surveys, interactive mapping, in-person pop-up events, and stakeholder working group meetings. This engagement helped identify local safety concerns, validate data-driven findings, and inform recommended safety countermeasures and priorities.

The SAP identified several locations within and adjacent to Watsonville for safety improvements. These included the intersections of Freedom Blvd at Buena Vista Dr & Compton Terrace, Green Valley Rd at Carey Ave and Rodriguez St at 2nd St. The SAP also examined the Green Valley Rd corridor from Harkins Slough Rd to the city limits at Corralitos Creek.

The SAP also recommended systemic safety improvements at signalized intersections throughout the city and at unsignalized intersections that experienced injury crashes during the 2019-2023 study period.

Improvements at signalized intersections include installation of retroreflective backplates on all traffic signal heads and replacing eight-inch traffic signal heads with 12-inch heads. Improvements at unsignalized intersections include installing retroreflective/larger signage and reflective post strips.

The SAP can serve as an ongoing resource and roadmap for City staff as they identify and pursue funding through various programs to implement safety improvements. To be eligible for construction funding through the SS4A program, agencies need to have an SAP that has been approved by their governing board. The deadline for applying for construction funding through the fourth and final year of the SS4A program has passed. Having a Council approved SAP allows the city to apply for future funding if the 2021 Bipartisan Infrastructure Law is extended.

The Plan is intended to guide and prioritize safety improvements. However, approval does not commit the city to implementing the recommendations as presented. Rather, the Plan will serve as a strategic

Page 495 of 1393 ends

Watsonville City CouncilJune 23, 2026

Watsonville City Council
June 23, 2026