Agenda packet — Watsonville City Council, July 7, 2026 (part 3 of 4)

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U.S. Local Government
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Points of Contact
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JOEY NOLASCO, ASST FINANCE MANAGER
250 Main Street
Watsonville, California 95076
United States
MARISSA DURAN 250 Main Street
Watsonville, California 95076
United States
Government Business

JOEY NOLASCO
250 Main Street
Watsonville, California 95076
United States
Service Classifications
NAICS Codes
Primary NAICS Codes NAICS Title
Disaster Response
This entity does not appear in the disaster response registry.

Last updated by Joey Nolasco on Jul 07, 2025 at 03:07 PM CITY OF WATSONVILLE Jul 08, 2025 05:54:09 PM GMT
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ATTACHMENT 6

SPONSOR CERTIFICATIONS

WATSONVILLE MUNICIPAL AIRPORT

WATSONVILLE, SANTA CRUZ COUNTY, CALIFORNIA
This attachment consists of the following Sponsor Certifications:

Drug-Free Workplace
Selection of Consultants
Project Plans and Specifications
Equipment and Construction Projects
Construction Project Final Acceptance
Potential Conflicts of Interests
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1 Reso No. ______ (CM)
Meeting Date: 070726 SWZ ______ TV ______ Airport ______ RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE ACCEPTING THE $115,058 GRANT FROM THE

DEPARTMENT OF TRANSPORTATION, FEDERAL AVIATION

ADMINSTRATION (FAA) FOR DESIGN, ENGINEERING, TESTING AND CONSTRUCTION FOR THE RUNWAY 2-20 PAVEMENT REMARKING,
AT THE WATSONVILLE MUNICIPAL AIRPORT; AUTHORIZING AND

DIRECTING THE CITY MANAGER TO EXECUTE GRANT AGREEMENT
AND ANY AMENDMENTS; AND AUTHORIZING THE CITY MANAGER

TO APPLY FOR, ACCEPT AND EXECUTE THE CALTRANS MATCHING
GRANT, IN THE AMOUNT OF $5,753, ANY AND ALL NECESSARY
DOCUMENTS AND ANY AMENDMENTS THERETO: AND

APPROPRIATING SUCH FUNDS TO THE AIRPORT ENTERPRISE
FUND [0730]

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

1. Design, engineering, testing, and remarking of Runway 2-20 is exempt under CEQA under CEQA Guidelines Section 15301, Class 1, Existing Facilities, as the authorized actions constitute maintenance of an existing airport facility and do not expand or alter the runway’s use, capacity or footprint. None of the exceptions to a categorical exemption in CEQA Guidelines Section 15300.2 apply to this maintenance work. The project is also exempt under CEQA Guidelines section 15061(b)(3), the common sense exemption, because the action does not have the potential to have a significant effect on the environment.

2. That the $115,058 grant form the Department of Transportation, Federal Aviation Administration (FAA) is hereby accepted.

3. That the City Manager of the City of Watsonville is hereby authorized and directed to execute on behalf of the City of Watsonville, Grant Agreement for Project No. 3-06-0272-029-2026, and all other documents required by the Department of

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2 Reso No. ______ (CM)
Meeting Date: 070726
Transportation, Federal Aviation Administration and any amendments thereto, as well as any necessary documents.

4. That the City Manager of the City of Watsonville is hereby authorized and directed to apply for, and if awarded, accept and execute on behalf of the City of Watsonville, the $5,753 Caltrans Matching Grant, and all other documents required by the Caltrans Division of Aeronautics and any amendments thereto, as well as any necessary documents.

5. That the appropriation of $115,058 to the Airport Enterprise Fund [0730] is hereby authorized.

6. That the appropriation of $5,753 to the Airport Enterprise Fund [0730], if awarded, is hereby authorized.
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1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, July 7, 2026
TO: CITY COUNCIL
WRITTEN BY: POLICE CAPTAIN RADICH
RECOMMENDED BY: POLICE CHIEF SHAB
APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: RESOLUTION TO ACCEPT $144,800.00 IN GRANT FUNDS FROM CALIFORNIA OFFICE OF TRAFFIC SAFETY FY26-27
RECOMMENDATION:

It is recommended that the City Council adopt a resolution accepting two grants from the California Office of Traffic Safety (OTS) totaling $114,800 for Fiscal Year 2026-2027, $69,800 for Selective Traffic Enforcement Program (STEP) grant, and $75,000 for the Pedestrian and Bicycle Safety Program grant, and authorizing the City Manager or her designee to execute the standard grant agreement, any amendments thereto and all required documents and appropriate funds to the special grant fund (0260).

BACKGROUND:

The California Office of Traffic Safety’s (OTS) mission is to effectively administer traffic safety grant funds to reduce traffic deaths, injuries, and economic losses. Their grant funds are intended to create and help sustain innovative programs at the state and local level, and leverage commitments of state, local, and private resources. OTS also mounts public awareness campaigns and acts as a primary traffic safety resource to enlist the help of the general public and the media, encouraging traffic safety.

Since OTS does not have sufficient funds for all submitted proposals, a comprehensive review is part of the proposal selection process. OTS reviews proposals against several criteria, including: potential traffic safety impact, collision statistics, seriousness of identified problem(s), and performance on previous grants. The Office of Traffic Safety has identified the following ten priority areas of concentration for grant funding: alcohol-impaired driving, distracted driving, drug-impaired driving, occupant protection, pedestrian and bicycle safety, traffic reports, emergency medical services, roadway safety, police traffic services, and motorcycle safety.

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2 In January 2026, the Police Department applied to OTS for a $210,726 Selective Traffic Enforcement Program grant, and a $124,730 Pedestrian and Bicycle Safety Program grant, both grant applications totaling $335,456. On May 29, the Police Department was notified that both grants were awarded to reduced amounts; $69,800 was awarded for the Selective Traffic Enforcement Program grant, and $75,000 was awarded for the Pedestrian and Bicycle Safety grant. The total award between the two grants was only $114,800.

DISCUSSION:

The Selective Traffic Enforcement Program (STEP) grant in the amount of $69,800 will be used to implement best practice strategies to reduce the number of persons killed and injured in crashes involving alcohol and other primary collision factors. The funded strategies include DUI checkpoints, DUI Saturation, Traffic Enforcement, Distracted Driving Enforcement, pedestrian and Bicycle Enforcement, Collaborative DUI & Traffic Enforcement, Street Racing and Sideshow Enforcement Operations, and Traffic Safety Educational Presentations. In addition, the grant will allow two (2) Officers to attend Standardized Field Sobriety Testing (SFST) and Advanced Roadside Impaired Driving Enforcement (ARIDE) training courses.

These strategies are designed to earn media attention, thus enhancing awareness around traffic safety and the overall deterrent effect.

The Pedestrian and Bicycle Safety Program grant in the amount of $75,000 will be used to implement best practice strategies to reduce the number of persons killed and injured in crashes involving pedestrians and bicyclists. The funded strategies include a partnership with Ecology Action of Santa Cruz, an awardwinning non-profit organization that will conduct Community Bicycle Rides, Bicycle Safety and Maintenance Workshops, Walking Field Trips, e-Bike Demos, and e-Bike Education Events, Senior Presentations, among other activities. The grant will also fund the distribution of 200 bicycle helmets to youth and adults in our City by Ecology Action of Santa Cruz. Ecology Action of Santa Cruz has been assisting the Police Department with implementing the OTS Pedestrian and Bicycle Safety Program grant since 2017; they have the expertise to meet the grant objectives and the qualifications to comply with OTS regulations.

Staff recommends City Council’s acceptance of the California of Office Traffic Safety grants for Fiscal Year 2026-2027, in the amount of $69,800 for the Selective Traffic Enforcement Program (STEP) and $75,000 for the Pedestrian and Bicycle Safety Program to use towards the implementation of traffic safety strategies.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

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

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3 STRATEGIC PLAN:

Public Safety
FINANCIAL IMPACT:

The Fiscal Year 2026-2027 OTS grant funds totaling $114,800, $69,800 Selective Traffic Enforcement Program and $75,000 Pedestrian and Bicycle Safety Program, have no financial impact on the general fund. The grant funds shall be appropriate to the special grants fund 0260.

ALTERNATIVE ACTION:

No reasonable alternatives are known at this time.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

1. Draft Selective Traffic Enforcement Program (STEP) Grant Agreement

2. Draft Pedestrian and Bicycle Safety Program Grant Agreement

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REVISED
1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, July 7, 2026
TO: CITY COUNCIL
WRITTEN BY: POLICE CAPTAIN RADICH
RECOMMENDED BY: POLICE CHIEF SHAB
APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: RESOLUTION TO ACCEPT $144,800.00 IN GRANT FUNDS FROM CALIFORNIA OFFICE OF TRAFFIC SAFETY FY26-27
RECOMMENDATION:

It is recommended that the City Council adopt a resolution accepting two grants from the California Office of Traffic Safety (OTS) totaling $144,800 for Fiscal Year 2026-2027, $69,800 for Selective Traffic Enforcement Program (STEP) grant, and $75,000 for the Pedestrian and Bicycle Safety Program grant, and authorizing the City Manager or her designee to execute the standard grant agreement, any amendments thereto and all required documents and appropriate funds to the special grant fund (0260).

BACKGROUND:

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REVISED
2 In January 2026, the Police Department applied to OTS for a $210,726 Selective Traffic Enforcement Program grant, and a $124,730 Pedestrian and Bicycle Safety Program grant, both grant applications totaling $335,456. On May 29, the Police Department was notified that both grants were awarded to reduced amounts; $69,800 was awarded for the Selective Traffic Enforcement Program grant, and $75,000 was awarded for the Pedestrian and Bicycle Safety grant. The total award between the two grants was only $144,800.

DISCUSSION:

These strategies are designed to earn media attention, thus enhancing awareness around traffic safety and the overall deterrent effect.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

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REVISED
3 STRATEGIC PLAN:

Public Safety
FINANCIAL IMPACT:

The Fiscal Year 2026-2027 OTS grant funds totaling $144,800, $69,800 Selective Traffic Enforcement Program and $75,000 Pedestrian and Bicycle Safety Program, have no financial impact on the general fund. The grant funds shall be appropriate to the special grants fund 0260.

ALTERNATIVE ACTION:

No reasonable alternatives are known at this time.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

1. Draft Selective Traffic Enforcement Program (STEP) Grant Agreement

2. Draft Pedestrian and Bicycle Safety Program Grant Agreement

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Reso No. (CM)
Meeting Date: 070726 SWZ ______ TV ______ Police ______ 1 RESOLUTION NO. _________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE ACCEPTING $114,800 IN GRANT FUNDS FROM THE
CALIFORNIA OFFICE OF TRAFFIC SAFETY FOR FY 2026-2027: $69,800

FOR THE SELECTIVE TRAFFIC ENFORCEMENT PROGRAM (STEP)
AND $75,000 FOR THE PEDESTRIAN AND BICYCLE SAFETY

PROGRAM, TO USE FOR THE IMPLEMENTATION OF TRAFFIC SAFETY STRATEGIES; AND AUTHORIZING THE CITY MANAGER OR HER

DESIGNEE TO EXECUTE A STANDARD AGREEMENT AND ANY
AMENDMENTS THERETO; AND ANY NECESSARY DOCUMENTS; AND

DIRECTING THAT SUCH FUNDS BE APPROPRIATED INTO THE
SPECIAL GRANTS FUND (0260)
WHEREAS, the Watsonville Police Department was awarded $114,800 in grant funds from the California Office of Traffic Safety to use for the implementation of traffic safety strategies.

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

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Reso No. (CM)
Meeting Date: 070726 2

2. That the Council hereby accepts the $114,800 in grant funds from the California Office of Traffic Safety for FY 2026-2027; $69,800 for the Selective Traffic Enforcement Program (STEP) and $75,000 for the Pedestrian and Bicycle Safety Program to use towards the implementation of traffic safety strategies.

3. That the City Manager, or her designee, is hereby authorized and directed to execute in the name of the City of Watsonville, any agreements, and amendments thereto and any necessary documents.

4. That the $114,800 in grants are hereby appropriated to the Special Grants Fund [0260].
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REVISED
Reso No. (CM)
Meeting Date: 070726 SWZ ______ TV ______ Police ______ 1 RESOLUTION NO. _________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE ACCEPTING $144,800 IN GRANT FUNDS FROM THE
CALIFORNIA OFFICE OF TRAFFIC SAFETY FOR FY 2026-2027: $69,800

FOR THE SELECTIVE TRAFFIC ENFORCEMENT PROGRAM (STEP)
AND $75,000 FOR THE PEDESTRIAN AND BICYCLE SAFETY

PROGRAM, TO USE FOR THE IMPLEMENTATION OF TRAFFIC SAFETY STRATEGIES; AND AUTHORIZING THE CITY MANAGER OR HER

DESIGNEE TO EXECUTE A STANDARD AGREEMENT AND ANY
AMENDMENTS THERETO; AND ANY NECESSARY DOCUMENTS; AND

DIRECTING THAT SUCH FUNDS BE APPROPRIATED INTO THE
SPECIAL GRANTS FUND (0260)
WHEREAS, the Watsonville Police Department was awarded $144,800 in grant funds from the California Office of Traffic Safety to use for the implementation of traffic safety strategies.

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

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Reso No. (CM)
Meeting Date: 070726 2

2. That the Council hereby accepts the $144,800 in grant funds from the California Office of Traffic Safety for FY 2026-2027; $69,800 for the Selective Traffic Enforcement Program (STEP) and $75,000 for the Pedestrian and Bicycle Safety Program to use towards the implementation of traffic safety strategies.

3. That the City Manager, or her designee, is hereby authorized and directed to execute in the name of the City of Watsonville, any agreements, and amendments thereto and any necessary documents.

4. That the $144,800 in grants are hereby appropriated to the Special Grants Fund [0260].
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CALIFORNIA HIGHWAY PATROL CANNABIS TAX FUND GRANT
PROGRAM FY26-27
RECOMMENDATION:

It is recommended that the City Council adopt a resolution accepting a grant from California Highway Patrol (CHP) Cannabis Tax Fund Grant Program (CTFGP) for Fiscal Year 2026-2027, in the amount of $62,838.52, to assist the Police Department with reducing and mitigating the impacts of impaired driving in our community, and authorizing the City Manager or her designee to execute the standard grant agreement, any amendments thereto and all required documents and appropriate funds to the special grant fund (0260).

BACKGROUND:

With the passage of Proposition 64 (the Control, Regulate, and Tax Adult Use of Marijuana Act or AUMA), California voters mandated the State set aside funding for the California Highway Patrol (CHP) to award grants to local governments and qualified non-profit organizations, with the goal of reducing impaired driving crashes, increasing public awareness surrounding the dangers of impaired driving, and making roadways safer to travel.

In February 2026, the Police Department applied to the California Highway Patrol Cannabis Tax Fund Grant Program (CTFGP) for a $64,236.27 grant and received notice on June 10, 2026, that the City was awarded the grant funding to a reduced amount of $62,838.52.

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2 DISCUSSION:

The CHP CTFGP grant will allow the Police Department to have Officers dedicated to twelve (12) impaired driving saturation patrols and two (2) DUI checkpoints, in order to prevent the loss of life, injuries, and property damage caused by driving under the influence of alcohol and/or drugs. The grant will also provide for the purchase of equipment to be installed in the DUI trailer, which was funded by the same grant in FY25-26, to furthersupport DUI enforcement. The grant will allow Officers to focus on Traffic/DUI enforcement efforts to reduce impaired driving incidents and DUI-related traffic collisions within the City of Watsonville. The goals of the proposed program are to reduce impaired driving and DUI-related collisions during the grant period.

Staff recommends City Council’s acceptance of the grant from the California Highway Patrol Cannabis Tax Fund Grant Program for Fiscal Year 2026-2027, in the amount of $62,838.52.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

STRATEGIC PLAN:

Public Safety
FINANCIAL IMPACT:

The FY2026-2027 CHP CTFGP Grant, in the amount of $62,838.52, has no financial impact on the general fund. The grant funds shall be appropriated to the special grants fund 0260.

ALTERNATIVE ACTION:

No reasonable alternatives are known at this time.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

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Reso No. (CM)
Meeting Date: 070726 SWZ ______ TV ______ Police ______ 1 RESOLUTION NO. (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE ACCEPTING $62,838.52 IN GRANT FUNDS FROM THE

CALIFORNIA HIGHWAY PATROL CANNABIS TAX FUND GRANT
PROGRAM FOR FY2026-2027; TO USE FOR IMPAIRED DRIVING
SATURATION PATROLS AND DUI CHECKPOINTS; AND AUTHORIZING

THE CITY MANAGER OR HER DESIGNEE TO EXECUTE A STANDARD
AGREEMENT AND ANY AMENDMENTS THERETO; AND ANY
NECESSARY DOCUMENTS; AND DIRECTING THAT SUCH FUNDS BE
APPROPRIATED INTO THE SPECIAL GRANTS FUND (0260)
WHEREAS, the Watsonville Police Department was awarded $62,838.52 in grant funds from the California Highway Patrol Cannabis Tax Grant Fund, to use for impaired driver saturation patrols and DUI checkpoints.

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

2. That the Council hereby accepts the $62,838.52 in grant funds from the California Highway Patrol Cannabis Tax Fund Grant Program for FY2026-2027 to use for impaired driver saturation patrols and DUI checkpoints.

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Reso No. (CM)
Meeting Date: 070726 2

3. That the City Manager, or her designee, is hereby authorized and directed to execute in the name of the City of Watsonville, agreements, and amendments thereto and any necessary documents.

4. That the $62,838.52 grant is hereby appropriated to the Special Grants Fund (0260).
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1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, July 7, 2026
TO: CITY COUNCIL
WRITTEN BY: Police Fiscal Manager Maldonado
RECOMMENDED BY: POLICE CHIEF SHAB
APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: RESOLUTION ACCEPTING $2,712,053 FROM THE PROPOSITION 64

PUBLIC HEALTH AND SAFETY GRANT PROGRAM FUNDED THROUGH

THE CALIFORNIA STATE AND LOCAL GOVERNMENT LAW

ENFORCEMENT ACCOUNT AND ADMINISTERED BY THE BOARD OF

STATE AND COMMUNITY CORRECTIONS
RECOMMENDATION:

It is recommended that the City Council adopt a resolution authorizing the City Manager or her designee to accept the Proposition 64 Public Health and Safety Grant Program funded through the California State and Local Government Law Enforcement Account and administered by the Board of State and Community Corrections, in the amount of $2,712,053, to address public health and safety associated with the implementation of the Control, Regulate and Tax Adult Use of Marijuana Act, and to execute all required documents and appropriate the funds to the grant budget.

BACKGROUND:

In November of 2016, voters approved Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA). AUMA legalized the recreational use of marijuana in California for individuals 21 years of age and older. Proposition 64 also provides that a portion of the tax revenue from the cultivation and retail sale of cannabis or cannabis products will be appropriated. Section 34019 of the Revenue and Taxation Code (RTC), relating to cannabis, states the Board of State and Community Corrections (BSCC) will make grants to local governments to assist with law enforcement, fire protection, or other local programs addressing public health and safety associated with the implementation of the Control, Regulate and Tax Adult Use of Marijuana Act. The BSSC shall prioritize grant awards for local governments whose grant application includes illicit cannabis enforcement.

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2 DISCUSSION:

The Board of State and Community Corrections (BSCC) had a meeting on Thursday, June 25, 2026, in which they recommended and approved the City of Watsonville Police Department grant proposal in the amount of $2,712,053 with a grant term of July 1, 2026 to December 31, 2031, includes a 5-year service delivery and six (6) months for evaluation and audit. The Watsonville Police Department will address local impacts to public health and safety associated to the implementation of the Control, Regulate and Tax Adult Use of Marijuana Act by creating a dedicated task force that will focus on illicit cannabis enforcement. The project goals include (1) increasing compliance with local and state cannabis laws (2) disrupting illicit cannabis activity, and (3) outreach campaign addressing safety risks of illicit cannabis products. These combined efforts will improve community health, consumer safety and the integrity of the licensed cannabis market.

Staff recommends City Council acceptance of the Proposition 64 Public Health and Safety Grant Program, to conduct coordinated enforcement and public safety operations that address illegal cannabis cultivation, manufacturing, distribution, and retail activity. The grant funds will be used to support enforcement operations, personnel, equipment and supplies, technology and data systems, and legal and administrative actions. To further enhance these efforts, the Watsonville Police Department will also provide community education and outreach related to cannabis impacts.

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 accepting a grant 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 action is consistent with the following strategic plan priority: Public Safety.

FINANCIAL IMPACT:

The Proposition 64 Cohort 4, in the amount of $2,712,053 has no financial impact to the general fund. The funds should be appropriated into the special grants fund 0260.

ALTERNATIVE ACTION:

No reasonable alternatives are known at this time.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

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Reso No. (CM)
Meeting Date: 070726 SWZ ______ TV ______ WPD ______
1 RESOLUTION NO. _________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE ACCEPTING $2,712,053 IN GRANT FUNDS FROM THE PROPOSITION 64 PUBLIC HEALTH AND SAFETY GRANT PROGRAM

FUNDED THROUGH THE CALIFORNIA STATE AND LOCAL

GOVERNMENT LAW ENFORCEMENT ACCOUNT AND ADMINISTERED

BY THE BOARD OF STATE AND COMMUNITY CORRECTIONS (BSCC),

TO ADDRESS LOCAL IMPACTS TO PUBLIC HEALTH AND SAFETY

RESULTING FROM THE LEGALIZATION OF ADULT USE
RECREATIONAL CANNABIS IN CALIFORNIA; AUTHORIZING THE CITY

MANAGER OR HER DESIGNEE TO EXECUTE A STANDARD
AGREEMENT AND ANY AMENDMENTS THERETO; AND ANY
NECESSARY DOCUMENTS; AND DIRECTING THAT SUCH FUNDS BE
APPROPRIATED TO THE SPECIAL GRANTS FUND (0260)
WHEREAS, the Watsonville Police Department was awarded $2,712,053 in grant funds from the Proposition 64 Public Health and Safety Grant Program funded through the California State and Local Government Law Enforcement Account and administered by the Board of State and Community Corrections (BSCC) to address local impacts to public health and safety resulting from the legalization of adult use recreational cannabis in California.

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

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Reso No. (CM)
Meeting Date: 070726 2
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. That the Council hereby accepts the $2,712,053 in grant funds from the Board of State and Community Corrections to conduct coordinated enforcement and public safety operations that address illegal cannabis activity.

3. That the City Manager, or her designee, is hereby authorized and directed to execute in the name of the City of Watsonville, any agreements, and amendments thereto and any necessary documents.

4. That the $2,712,053 in grants is hereby appropriated to the Special Grants Fund [0260].
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1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, July 7, 2026
TO: CITY COUNCIL
WRITTEN BY: AIRPORT DIRECTOR WILLIAMS
RECOMMENDED BY: AIRPORT DIRECTOR WILLIAMS
APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: APPROVAL OF LEASE TO PAUL MORENO DBA KNOWLTON
CONSTRUCTION LLC, PROPERTY LOCATED AT 240 AIRPORT

BOULEVARD
RECOMMENDATION:

It is recommended the City Council adopt a resolution approving a non-aeronautical lease between Paul Moreno dba Knowlton Construction and the City of Watsonville and a guaranty agreement, and authorize the City Manager to execute same.

BACKGROUND:

Knowlton Construction is a general contractor and construction company providing professional residential and commercial building construction, fabrication and remodeling services. Knowlton Construction is a long-term non-aeronautical leasehold, dating back to February 2001 with several lease renewals and one relocation over the last twenty years.

DISCUSSION:

The Airport negotiated and reached agreement on lease terms for the 1,730 square feet of industrial office located at 240 Airport Boulevard on January 2023. The lease term is four years at a rate of $0.95 per square foot, totaling $1,643.50 per month and subject to standard CPI adjustments over the term.

Given the Municipal Airport is updating all leases (aeronautical and non-aeronautical) to a standard document and that Paul Moreno dba Knowlton Construction, LLC, recently expressed the desire to add Office #5 to their leased premises, we have mutually agreed to enter into a new lease agreement. Mr.

Moreno’s attached letter confirms his desire to terminate the current lease whose expiration date is

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2 December 31, 2026, and enter into a new lease per Section 59 “Consent” of the current lease agreement.

As a result, we are entering a new lease to include 156 square feet of office space in their current leasehold. The additional property adds a total of 1,886 square feet and a new monthly lease payment of $1,791.70.

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:

Supports the Municipal Airport’s Enterprise Fund and continued Economic Development.

Economic Development
FINANCIAL IMPACT:

The Airport Enterprise Fund will receive monthly rent for the four (4) year term. There will be continued positive financial impacts to the Municipal Airport and the City, resulting from increased jobs, and increased sales and use tax revenue.

ALTERNATIVE ACTION:

Alternatives include not approving the lease resulting in loss of revenue for the Airport Enterprise Fund.

ATTACHMENTS AND/OR REFERENCES (IF ANY):
1) Letter of termination of current lease.

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Attachment 1

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1 Reso No. ______ (CM)
Reference: Reso No. 258-22 (Rescind)
Meeting Date: 070726 SWZ ______ TV ______ Airport ______ RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING A FOUR-YEAR NON-AERONAUTICAL

LEASE BETWEEN PAUL MORENO DBA KNOWLTON CONSTRUCTION
LLC., AND THE CITY OF WATSONVILLE FOR THE USE OF CITY OWNED PROPERTY LOCATED AT 240 AIRPORT BOULEVARD, WATSONVILLE, CALIFORNIA COMMENCING ON JULY 1, 2026 AND ENDING JUNE 30, 2030, AND A GUARANTY AGREEMENT; AND AUTHORIZING AND

DIRECTING THE CITY MANAGER TO EXECUTE SAME
WHEREAS, on December 13, 2022, Council adopted Resolution No. 258-22 (CM) approving a four-year lease with Knowlton Construction for the use of City property located at 240 Airport Blvd, commencing January, 1, 2023 and ending December 31, 2026; and
WHEREAS, Paul Moreno dba Knowlton Construction, LLC., recently expressed the desire to add office space to their leased premises; and WHEREAS, as a result, the City is entering into a new lease to include 156 square feet of office space in their current leasehold.

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

1. Adopting a Resolution approving a Lease between the City of Watsonville and Paul Moreno, dba Knowlton Construction, 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. That the four-year non-aeronautical Lease between the City of Watsonville and Paul Moreno, dba Knowlton Construction LLC., for the use of 1,886 square feet of City owned property located at 240 Airport Boulevard, Watsonville, California

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2 Reso No. ______ (CM)
Reference: Reso No. 258-22 (Rescind)
Meeting Date: 070726
commencing July 1, 2026, and ending June 30, 2030, a copy of which Lease is attached hereto and incorporated herein by this reference, is hereby approved.

3. That the Guaranty Agreement between the City of Watsonville and Paul Moreno, dba Knowlton Construction LLC., a copy of which Agreement is attached hereto and incorporated herein by this reference, is hereby approved.

4. That the City Manager is hereby authorized and directed to execute such Lease and Guaranty Agreement, on behalf of the City of Watsonville, in the form attached hereto with minor revisions that may be approved by the City Manager and the City Attorney as well as any other documents which are related to the Lease. ******************************

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LEASE AGREEMENT

BY AND BETWEEN

CITY OF WATSONVILLE,
a municipal corporation

AS LANDLORD
and

KNOWLTON CONSTRUCTION
a Limited Liability Company

AS TENANT
Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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TABLE OF CONTENTS
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1. DEMISE ...................................................................................................................................... 4

2. PREMISES................................................................................................................................... 4

2.1 Premises..............................................................................................................4

2.2 Parking ................................................................................................................4

2.3 Possession ..........................................................................................................5

2.4 Landlord’s Reserved Rights .................................................................................5

2.5 Tenant Access .....................................................................................................5

3. TERM ......................................................................................................................................... 5

3.1 Term ....................................................................................................................5

3.2 Delay and Delivery...............................................................................................6

4. RENT.......................................................................................................................................... 6

4.1 Base Rent............................................................................................................6

4.2 Additional Rent ....................................................................................................6

4.3 Late Charge.........................................................................................................6

4.4 Interest.................................................................................................................6

5. INTENTIONALLY OMITTED........................................................................................................ 6

6. USE; COMPLIANCE WITH LAWS ................................................................................................ 7

6.1 Use ......................................................................................................................7

6.2 Prohibited Uses....................................................................................................7

6.3 Compliance with Laws .........................................................................................7

6.4 Use Permit...........................................................................................................7

6.6 Business Hours....................................................................................................7

7. SECURITY DEPOSIT.................................................................................................................... 8

8. UTILITIES AND SERVICES .......................................................................................................... 8

8.1 Payments for Utilities and Services......................................................................8

8.2 No Liability of Landlord.........................................................................................8

9. PERSONAL PROPERTY AND POSSESSORY INTEREST TAXES...................................................... 9

9.1 Tenant’s Tax Obligation .......................................................................................9

9.2 Personal Property Taxes......................................................................................9

9.3 Possessory Interest Taxes...................................................................................9

9.4 Payment ..............................................................................................................9

10. ALTERATIONS............................................................................................................................ 9 Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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10.1 Landlord Consent Required .................................................................................9

10.2 Alterations............................................................................................................9

10.3 Liens..................................................................................................................10

11. MAINTENANCE AND REPAIR OF PREMISES. ............................................................................ 10

11.1 Maintenance and Repair by Tenant ...................................................................10

11.2 Maintenance and Repair by Landlord.................................................................11

12. ENVIRONMENTAL PROTECTION PROVISIONS. ........................................................................ 12

12.1 Hazardous Materials ..........................................................................................12

12.2 Reportable Uses Required Consent...................................................................12

12.3 Remediation Obligations ....................................................................................13

12.4 Environmental Permits.......................................................................................13

12.5 Landlord’s Inspection Right................................................................................13

12.6 Hazardous Materials Handling Plan ...................................................................14

12.7 Hazardous Materials Indemnity..........................................................................14

13. ASSIGNMENT AND SUBLETTING............................................................................................... 14

13.1 Landlord Consent Required ...............................................................................14

13.2 Landlord Recapture ...........................................................................................14

13.3 Transfer Premium ..............................................................................................15

13.4 No Release........................................................................................................15

13.5 Expenses and Attorneys’ Fees...........................................................................15

13.6 Limitations on Transfer Reasonable...................................................................15

14. INDEMNITY AND WAIVER OF CLAIMS. .................................................................................... 16

14.1 Tenant Indemnification.......................................................................................16

14.2 Waiver of Claims................................................................................................16

14.3 Survival/No Impairment......................................................................................16

15. INSURANCE. ............................................................................................................................. 17

15.1 Tenant’s Insurance Obligations..........................................................................17

15.2 Requirements For All Policies ............................................................................18

15.3 Certificates of Insurance ....................................................................................18

16. DAMAGE OR DESTRUCTION..................................................................................................... 18

16.1 Definitions..........................................................................................................18

16.2 Partial Damage - Insured Loss...........................................................................19 Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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16.3 Partial Damage - Uninsured Loss ......................................................................19

16.4 Total Destruction................................................................................................20

16.5 Damage Near End of Term ................................................................................20

16.6 Abatement of Rent.............................................................................................20

17. CONDEMNATION...................................................................................................................... 20

18. DEFAULT.................................................................................................................................. 21

18.1 Events of Default................................................................................................21

18.2 Remedies...........................................................................................................22

18.3 No Waiver..........................................................................................................22

18.4 Waiver of Redemption, Reinstatement, or Restoration.......................................23

18.5 Remedies Cumulative........................................................................................23

18.6 Landlord’s Right to Perform Tenant’s Obligations ..............................................23

18.7 Severability ........................................................................................................23

19. LIMITATION OF LIABILITY...................................................................................................... 23

20. SURRENDER OF PREMISES....................................................................................................... 24

21. HOLDING OVER....................................................................................................................... 24

22. NO SUBORDINATION BY LANDLORD........................................................................................ 24

23. TENANT’S ESTOPPEL CERTIFICATE........................................................................................ 25

24. RELOCATION ........................................................................................................................... 25

25. NOTICE .................................................................................................................................... 25

26. NON-DISCRIMINATION; LABOR PROVISIONS.......................................................................... 25

26.1 Equal Opportunity ..............................................................................................25

26.2 Prevailing Wages and Related Requirements ....................................................26

27. CLOSURE OF AIRPORT............................................................................................................. 27

28. MISCELLANEOUS..................................................................................................................... 27

28.1 Governing Law...................................................................................................27

28.2 Severability ........................................................................................................27

28.3 Attorneys’ Fees..................................................................................................27

28.4 Force Majeure....................................................................................................27

28.5 Sale ...................................................................................................................27

28.6 Signs..................................................................................................................28

28.7 Brokers ..............................................................................................................28 Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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28.8 Access by Landlord............................................................................................28

28.9 Waiver of Right to Jury Trial...............................................................................28

28.10 Recordation .......................................................................................................29

28.11 Article and Section Titles....................................................................................29

28.12 Authority ............................................................................................................29

28.13 Quiet Possession...............................................................................................29

28.14 Asbestos Notification for Commercial Property Constructed Before 1979 ..........29

28.15 Lead Warning Statement ...................................................................................29

28.16 OFAC Certification.............................................................................................30

28.17 Certified Access Specialist Disclosure ...............................................................30

28.18 Time of the Essence ..........................................................................................30

28.19 Entire Agreement...............................................................................................30

28.20 Rules and Regulations.......................................................................................30

28.21 Notice to Federal Aviation Administration...........................................................31

28.22 No Exclusive Right.............................................................................................31

28.23 Financial Statement ...........................................................................................31

28.24 Relocation Benefits............................................................................................31

28.25 Counterparts......................................................................................................31 Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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INDEX OF EXHIBITS
Exhibit

A PREMISES
A-1 PREMISES
A-3 TRANSIENT RAMP

B COMMENCEMENT LETTER

C RULES AND REGULATIONS
Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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LEASE AGREEMENT

BASIC LEASE INFORMATION
Lease Date: Dated as of July 1, 2026 for reference purposes only Landlord: City of Watsonville
a charter city and municipal corporation
Landlord’s Address: City of Watsonville
275 Main Street, Suite 400
Watsonville, CA 95076
Attn: Airport Manager
Tel: (831) 768-3575
Email: airport @watsonville.gov
Tenant: Paul Moreno d/b/a Knowlton Construction, LLC
Tenant’s Address: 240 Airport Boulevard
Watsonville, CA 95076
Tel: (831) 722-1730
Email: [email protected]
Premises: Approximately one thousand eight hundred eighty-six (1,886) square feet portion of building located at 240 Airport Boulevard, the premises are outlined in Exhibits “A” and “B”.

Airport: Watsonville Municipal Airport, including the land thereunder, plus any other land adjacent thereto owned by City and/or the Airport Length of Term: Forty-Eight (48) months
Estimated
Commencement
Date:

July 1, 2026
Estimated Expiration
Date:

June 30, 2030
Monthly Base Rent: $1,791.70
Rent Adjustments The rent shall be adjusted annually, commencing on July 1st of the second year of the Term, and every year thereafter on July 1st 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 Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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no event will the annual rental increase be more than seven percent (7%) due to increase in the CPI.

Tenant’s Taxes;
Utilities and
Services:

Tenant shall pay all costs for Utilities and Services to the Premises, as defined in the Lease. Tenant shall pay all taxes (including possessory interest taxes) levied on or against the Premises or its personal property.

Security Deposit: $1,791.70
Permitted Use: Operate a commercial tandem construction business in accordance with the Watsonville Municipal Airport’s Minimum Commercial Standards (“MCS”)
Parking: Tenant shall have the right, on a non-exclusive basis, in common with other tenants, to have its employees and visitors park in the paved areas adjacent to the Airport, as identified as the Parking Area on Exhibit A attached hereto, as further set forth in Section 2.2 herein below.

Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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LEASE AGREEMENT
This Lease Agreement is made and entered into by and between the City of Watsonville, a municipal corporation (“Landlord”), and Knowlton Construction, a Limited Liability Company (“Tenant”). The Basic Lease Information, the Exhibits and this Lease Agreement are and shall be construed as a single instrument and are referred to herein as the “Lease”.

1. DEMISE. In consideration for the rents and all other charges and payments payable by Tenant, and for the agreements, terms and conditions to be performed by Tenant in this Lease, and subject to City Council approval, Landlord does hereby lease to Tenant and Tenant does hereby hire and take from Landlord, the Premises described below, upon the agreements, terms and conditions of this Lease for the Term hereinafter stated.

2. PREMISES.

2.1 Premises. The Premises demised by this Lease are as specified in the Basic Lease Information. The Premises are located on property commonly referred to as the Watsonville Municipal Airport. The Premises have the address and contain the square footage specified in the Basic Lease Information; provided, however, that any statement of square footage or acreage set forth in this Lease is an approximation which Landlord and Tenant agree is reasonable and no economic terms based thereon shall be subject to revision whether or not the actual square footage is more or less.

2.2 Parking. Provided that Tenant shall not be in Default under the terms and conditions of this Lease and subject to compliance with the Rules and Regulations attached hereto as Exhibit C and incorporated herein by reference, in addition to the Premises, Landlord grants Tenant a license for Tenant and its employees, agents, suppliers, customers and patrons the right to use those portions of the Land designated on Exhibit A for parking and/or aviation/aircraft tie-down purposes (“Parking Area”). Tenant may also use the Parking Area for the loading and unloading of trucks shipping items to and from the Premises. Landlord shall not be required to enforce Tenant’s rights to use any parking spaces on the Parking Area. Landlord reserves the right, from time to time, to stripe, restripe or otherwise designate those areas of the Parking Area which may be used for parking purposes. Under no circumstances may the Parking Area be utilized for the storage (beyond 48 hours), repair or maintenance of any vehicles. Should Tenant or its agents, employees or invitees use the Parking Area or any portion thereof in violation of this Section 2.2, Landlord shall have the right, without notice, in addition to such other rights and remedies that it may have, to tow away any vehicle involved and charge the cost of towing and storage to Tenant, which cost shall be immediately payable upon demand by Landlord as Additional Rent. Neither Landlord nor any of the Landlord Related Parties (as defined in Section 14.1) shall be liable for: (a) loss or damage to any vehicle or other personal property parked or located upon or within the Parking Area, whether pursuant to this license or otherwise and whether caused by fire, theft, explosions, strikes, riots, or any other cause whatsoever; or (b) injury to or death of any person in, about or around any parking spaces or any portion of the Parking Area or any vehicles parked thereon whether caused by fire, theft, assault, explosion, riot or any other cause whatsoever and Tenant hereby waives any claims for, or in respect to, the above. Tenant shall not assign any of its rights under this Section 2.2 except in connection with an assignment of Tenant’s interests in the Lease or a sublease in accordance with Article 13 and in the event an attempt to assign is made, it shall be void. Tenant shall maintain the Parking Area in a clean and neat condition that is free of debris.

Landlord shall have no maintenance obligations for the Parking Area and all provisions of this Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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Lease concerning Tenant’s rights and obligations governing its use and occupancy of the Premises that are not inconsistent with this Section 2.2 shall be applicable to the Parking Area.

2.3 Possession. Tenant accepts the Premises in “AS IS” “WITH ALL FAULTS” condition and configuration without any representations or warranties by Landlord, and subject to all matters of record and all applicable laws, ordinances, rules and regulations, with no obligation of Landlord to make alterations or improvements to the Premises. Tenant acknowledges that neither Landlord nor any agent of Landlord has made any representation or warranty with respect to the suitability of the Premises, Airport, Parking Area, or infrastructure for the conduct of Tenant’s business. Landlord shall not be liable for any latent or patent defects in the Airport, Parking Area or Premises. If the City of Watsonville advises Tenant that a Certificate of Occupancy is required for the Premises, then Tenant shall be responsible for requesting an inspection and obtaining a Certificate of Occupancy from the City of Watsonville.

This shall include but is not limited to any necessary fire sprinkler upgrades, electrical service upgrades, compliance with the ADA (as defined at Section 6.3), and any other requirements mandated by the Certificate of Occupancy inspection.

2.4 Landlord’s Reserved Rights. Landlord hereby reserves the right, and at any time and from time to time, without the same constituting an actual or constructive eviction, to make alterations, additions, repairs, improvements to or in all or any part of the Airport, the Parking Area and other areas within and around the Airport and to change the arrangement and/or location of entrances or passageways, doors and doorways, corridors, elevators, stairs, toilets and other public parts of the Airport and parking areas, drive isles, landscaping, curb cuts and paved and unpaved portions of the exterior of the Airport. Without limiting the foregoing, Landlord reserves the right from time to time to install, use, maintain, repair, relocate and replace pipes, ducts, conduits, wires, meters and equipment for services to the Premises or other part of the Airport which are above the ceiling surfaces, below the floor surfaces, within the walls and in the central core areas of the Airport which are located within the Premises or located elsewhere in the Airport. In connection with any of the foregoing activities, Landlord shall use reasonable efforts to minimize any interference with Tenant’s use of the Premises and shall not, without the prior written approval of Tenant, (a) materially change the location, size or configuration of the Premises; or (b) do anything which would have a material and adverse effect on access to the Premises, or ingress and egress to the Premises. No rights to any view or to light or air over any property, whether belonging to Landlord or any other person, are granted to Tenant by this Lease.

2.5 Tenant Access. Subject to the terms of this Lease and all applicable laws, rules and regulations of the Airport, Tenant and its employees, agents, suppliers, customers and patrons shall have the non-exclusive rights of ingress and egress to the following areas solely for access and/or other purposes in connection with Tenant’s Permitted Use: (i) vehicular and pedestrian access to the Parking Area; (ii) pedestrian access to the Premises along the storefront entrance at 240 Airport Boulevard

3. TERM.

3.1 Term. The term of this Lease (“Term”) shall be for the period specified in the Basic Lease Information, commencing on the later of (a) the Estimated Commencement Date, or (b) one (1) day after this Lease has been approved by the City Council, at its sole and absolute discretion (“Commencement Date”). This Lease shall terminate at midnight on the last day of the Forty-Eight (48th) full calendar month following the Commencement Date (“Expiration Date”), unless sooner terminated or extended as hereinafter provided. Promptly Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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following the Commencement Date, Landlord and Tenant shall enter into a letter agreement substantially in the form attached hereto as Exhibit B, specifying and confirming the Commencement Date and the Expiration Date; if Tenant fails to execute and deliver such letter agreement to Landlord within ten (10) business days after Landlord’s delivery of the same to Tenant, said letter agreement as completed by Landlord will be deemed final and binding upon Tenant.

3.2 Delay and Delivery. If for any reason Landlord has not delivered to Tenant possession of the Premises by the Estimated Commencement Date set forth in the Basic Lease Information, this Lease shall remain in effect and Landlord shall not be liable to Tenant for any loss or damage resulting therefrom.

4. RENT.

4.1 Base Rent.
(a) Generally. From and after the Commencement Date, Tenant shall pay to Landlord, in advance of the first day of each calendar month, without any setoff or deduction and without further notice or demand, the monthly installments of rent specified in the Basic Lease Information (“Base Rent”). One full installment of Monthly Base Rent shall be due and payable on the date of execution of this Lease by Tenant and shall be applied to the first full calendar month for which Monthly Base Rent is due. If the Commencement Date should be on a date other than the first day of a calendar month, the Monthly Base Rent installment paid for any fractional month during the Term shall be prorated based upon a thirty (30) day calendar month. Upon execution of this Lease, Tenant shall also pay to Landlord the amount of the Security Deposit as specified in the Basic Lease Information.

4.2 Additional Rent. As used in this Lease, the term “Additional Rent” shall mean all sums of money, other than Base Rent, that are due and payable by Tenant under the terms of this Lease including, but not limited to, payment of Utilities and Services in accordance with Article 8 of this Lease. The term “Rent,” as used herein, shall mean all Base Rent, Additional Rent and all other amounts payable hereunder from Tenant to Landlord. Unless otherwise specified herein, all items of Rent other than Base Rent shall be due and payable by Tenant on or before the date that is thirty (30) days after the date of Landlord’s invoice.

4.3 Late Charge. Other remedies for non-payment of Rent notwithstanding, if any Monthly Base Rent installment or Additional Rent is not received by Landlord on or before the fifth (5th) day following the due date, or any payment due Landlord by Tenant which does not have a scheduled date is not received by Landlord on or before the tenth (10th) day following the date Tenant was invoiced for such charge, a late charge of ten percent (10%) of such past due amount shall be immediately due and payable as Additional Rent.

4.4 Interest. Any installment of Rent and any other sum due from Tenant under this Lease which is not received by Landlord within five (5) days from when the same is due shall bear interest from the date such payment was originally due under this Lease until paid at the lesser of: (a) an annual rate equal to the maximum rate of interest permitted by law, or (b) ten percent (10%) per annum. Payment of such interest shall not excuse or cure any Default by Tenant.

5. INTENTIONALLY OMITTED.

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6. USE; COMPLIANCE WITH LAWS.

6.1 Use. The Premises shall be used for the Permitted Use and for no other use whatsoever. At no time shall Tenant have the right to install, operate or maintain telecommunications or any other equipment on the roof or exterior areas of the Airport, except as may be necessary for Tenant’s Permitted Use of the Premises and Tenant’s installation of such equipment is done in full compliance with Article 10. Tenant acknowledges that neither Landlord nor any agent of Landlord has made any representation or warranty with respect to the Premises, Airport or with respect to the suitability or fitness of either for the conduct Tenant’s business or for any other purpose.

6.2 Prohibited Uses. The Premises and the Airport shall not be used for any of the following: (a) the sale of aviation grade fuel, jet fuel, automobile or other fuel, (b) commercial manufacturing of aircraft, (c) the operation of a scheduled air cargo service, (d) the operation of a “UNICOM” radio communication system with aircraft, or (e) inside the fenced area of the Airport, the operation of a maintenance or repair service on non-aviation related items, including but not limited to automobiles, motorized vehicles and boats, provided that such use shall be permitted to the extent it is undertaken solely outside the fenced area of the Airport and is described as a Permitted Use in this Lease.

6.3 Compliance with Laws. Tenant shall comply with all laws, ordinances, rules, regulations and codes, of all municipal, county, state and federal authorities, including the Americans With Disabilities Act, as amended, (42 U.S.C. Section 1201 et seq. [the “ADA”]) (collectively, “Laws”) pertaining to Tenant’s use and occupancy of the Premises and the conduct of its business, including all federal, state and municipal laws and ordinances and all rules and regulations of the Federal Aviation Administration and the City of Watsonville rules and regulations concerning the operations of the Airport and its property. Tenant shall be responsible for making all improvements and alterations necessary to bring the Premises into compliance with applicable ADA requirements, including correcting any construction-related accessibility standards within the Premises, and to ensure that the Premises remain in compliance throughout the Term of this Lease. Tenant shall not commit, or suffer to be committed, any waste upon the Premises or any public or private nuisance, or other act or thing which disturbs the quiet enjoyment of any other tenant in the Airport, nor shall Tenant store any materials on the Premises which are visible from areas adjacent to the Premises, unless otherwise specifically set forth in this lease. Tenant shall not permit any objectionable odor to escape or be emitted from the Premises and shall ensure that the Premises remain free from infestation from rodents or insects. Tenant shall not do or permit anything to be done on or about the Premises or bring or keep anything into the Premises which will in any way increase the rate of, invalidate, or prevent the procuring of any insurance, protecting against loss or damage to the Airport or any of its contents by fire or other casualty or against liability for damage to property or injury to person in or about the Airport.

6.4 Use Permit. Tenant and any of its subtenants shall maintain a City of Watsonville use permit and other applicable City permits and approvals for the intended use of the Premises (collectively “Use Permit”).

6.5 Business Hours. Except during reasonable periods of routine repair, cleaning and upkeep, Tenant shall keep the Premises open for business during the days and hours approved in writing by Landlord, taking into consideration Tenant’s Permitted Use. During all hours of operation, Tenant shall have at the Premises adequate and competent personnel necessary for Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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the safe performance of Tenant’s business. In the event Tenant fails to operate its business from the Premises as required hereunder, Tenant shall be in default of this Lease.

7. SECURITY DEPOSIT. Concurrently with its execution of this Lease, Tenant shall deliver to Landlord the amount identified in the Basic Lease Information as the Security Deposit to be held by Landlord without liability for interest (unless required by Law) as security for the performance of Tenant’s obligations. The Security Deposit is not an advance payment of Rent or a measure of damages. Landlord may from time to time and without prejudice to any other remedy provided in this Lease or by Law, use all or a portion of the Security Deposit to the extent necessary to satisfy past due Rent or to satisfy Tenant’s Default under this Lease or to reimburse or compensate Landlord for any liability, expense, loss or damage which Landlord may suffer or incur by reason thereof. If Landlord so uses or applies all or any portion of the Security Deposit, then within fifteen (15) days after demand therefore, Tenant shall deposit cash with Landlord in an amount sufficient to restore the deposit to the full amount thereof, and Tenant’s failure to do so shall constitute a Default (as defined in Article 18) under this Lease. If there are no payments to be made from the Security Deposit as set out in this paragraph, or if there is any balance of the Security Deposit remaining after all payments have been made, the Security Deposit, or such balance thereof remaining, will be refunded to the Tenant after the expiration or earlier termination of this Lease. Tenant hereby waives the benefit of the provisions of California Civil Code Section 1950.7. In the event of an act of bankruptcy by or insolvency of Tenant or the appointment of a receiver for Tenant or general assignment for the benefit of Tenant’s creditors, the Security Deposit shall be deemed immediately assigned to Landlord.

8. UTILITIES AND SERVICES.

8.1 Payments for Utilities and Services. Tenant shall contract directly with the providers of, and shall pay all charges for, water, sewer, storm water, gas, electricity, heat, cooling, telephone, refuse collection, janitorial, pest control, security and monitoring services and any other services furnished to the Premises, together with all related installation or connection charges or deposits (“Utilities and Services”). If any such Utilities and Services are not separately metered or billed to Tenant for the Premises but rather are billed to and paid by Landlord, Tenant shall pay to Landlord, as Additional Rent, its pro rata share of the cost of such services, as reasonably determined by Landlord. If any Utilities and Services are not separately metered, Landlord shall have the right to determine Tenant's consumption by either submetering, survey or other methods designed to measure consumption with reasonable accuracy.

8.2 No Liability of Landlord. In no event shall Landlord be liable or responsible for any loss, damage, expense or liability, including, without limitation, loss of business or any consequential damages, arising from any failure or inadequacy of any Utilities and Services provided to the Premises or Airport, whether resulting from any change, failure, interference, disruption or defect in supply or character of the Utilities and Services provided to the Premises or Airport, or arising from the partial or total unavailability of the Utilities and Services to the Premises or Airport, from any cause whatsoever, or otherwise, nor shall any such failure, inadequacy, change, interference, disruption, defect or unavailability constitute an actual or constructive eviction of Tenant, or entitle Tenant to any abatement or diminution of Rent or otherwise relieve Tenant from its obligations under this Lease.

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9. PERSONAL PROPERTY AND POSSESSORY INTEREST TAXES.

9.1 Tenant’s Tax Obligation. “Tenant’s Taxes” shall mean all taxes, assessments and governmental charges, whether federal, state, county or municipal, and whether general or special, ordinary or extraordinary, foreseen or unforeseen, imposed upon Tenant’s personal property or trade fixtures, the Premises, or any possessory interest therein, or their operation, whether or not directly paid by Landlord, but excluding those Taxes paid by Landlord as defined at Section 5.1(c) above.

9.2 Personal Property Taxes. Tenant shall pay all of Tenant’s Taxes levied or imposed against the Premises or Tenant’s personal property or trade fixtures placed by Tenant in or about the Premises during the Term.

9.3 Possessory Interest Taxes. The interest created by this Lease may at some time be subject to property taxation under the laws of the State of California. If property taxes are imposed, the party in whom the possessory interest is vested may be subject to the payment of the taxes levied on such interest. This notice is included in this Lease pursuant to the requirements of section 107.6 (a) of the Revenue and Taxation Code of the State of California.

9.4 Payment. Tenant shall pay Tenant’s Taxes or possessory interest taxes in accordance with the instructions of the taxing entity. Tenant shall pay Tenant’s Taxes, if any, originally imposed upon Landlord, upon Landlord’s election, either (a) annually within thirty (30) days after the date Landlord provides Tenant with a statement setting forth in reasonable detail Tenant’s Taxes, or (b) monthly in advance based on estimates provided by Landlord based upon the previous year’s tax bill. All Tenant’s Taxes originally imposed upon Landlord and payable by Tenant with respect to the Premises shall be prorated on a per diem basis for any partial tax year included in the Term. Tenant’s obligation to pay Tenant’s Taxes during the last year of the Term shall survive the expiration or termination of this Lease.

10. ALTERATIONS.

10.1 Landlord Consent Required. Tenant shall not make any alterations, improvements, or additions (each an “Alteration”) in or about the Premises or any part thereof without the prior written consent of Landlord, which consent may be reasonably conditioned upon criteria and/or requirements deemed necessary by Landlord in its proprietary capacity only; provided, however, that Landlord shall have the right in its sole and absolute discretion to withhold its consent to any Alteration which affects the structural components of the Airport, including the roof, support structures, foundations, the exterior of the Airport and/or the systems serving the Premises or the Airport. Further, no structures erected on the Premises shall exceed the height limit fixed by any City zoning ordinance or regulations of the Airport or the Federal Aviation Administration. Any such approval by Landlord shall be in its proprietary capacity as Landlord and no such approval shall be deemed an approval by the City of Watsonville in its regulatory capacity.

10.2 Alterations. Any Alterations to the Premises shall be at Tenant’s sole cost and expense, and made in compliance with all applicable Laws and all reasonable requirements requested by Landlord. Tenant shall be solely responsible for obtaining and complying with all applicable permits and governmental approvals for any Alternations to the Premises. Tenant shall reimburse Landlord for any sums paid by Landlord for third party examination of Tenant’s plans for Alterations. Landlord’s approval of an Alteration shall not be deemed a representation by Landlord that the Alteration complies with Law. Upon completion, Tenant shall furnish Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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Landlord with at least three (3) sets of “as built” Plans (as well as a set in CAD format, if requested by Landlord) for the Alterations, completion affidavit and full and final unconditional waivers of liens and will cause a Notice of Completion to be recorded in the Office of the Recorder of the County of Santa Cruz. Any Alteration shall at once become the property of Landlord; provided, however, that Landlord, at its option, may require Tenant to remove any Alterations prior to the expiration or sooner termination of this Lease. All costs of any Alterations (including, without limitation, the removal thereof, if required) shall be borne by Tenant. If Tenant fails to promptly complete the removal of any Alterations and/or to repair any damage caused by the removal, Landlord may do so and may charge the reasonable costs thereof to Tenant. All Alterations shall be made in a good and workmanlike manner and in a manner that will not disturb other tenants, and Tenant shall maintain appropriate liability and builders’ risk insurance throughout the construction. Tenant shall indemnify, defend (with counsel reasonably approved by Landlord), protect and hold Landlord harmless from and against any and all claims for injury to or death of persons or damage or destruction of property arising out of or relating to the performance of any Alterations by or on behalf of Tenant. Under no circumstances shall Landlord be required to pay, during the Term (as the same may be extended or renewed) any ad valorem or other Taxes on such Alterations, Tenant hereby covenanting to pay all such taxes when they become due.

10.3 Liens. Tenant shall pay when due all claims for labor or materials furnished Tenant for use in the Premises. Tenant shall not permit any mechanic liens, stop notices, or any other liens against the Premises, Airport, Alterations or any of Tenant’s interests under this Lease for any labor or materials furnished to Tenant in connection with work performed on or about the Premises by or at the direction of Tenant. Tenant shall indemnify, hold harmless and defend Landlord (by counsel reasonably satisfactory to Landlord) from any liens and encumbrances arising out of any work performed or materials furnished by or at the direction of Tenant. In the event that Tenant shall not, within ten (10) days following the imposition of any such lien or stop notice, cause such lien or stop notice to be released of record by payment or posting of a proper bond, Landlord shall have, in addition to all other remedies provided herein or by law, the right, but not the obligation, to cause the same to be released by such means as it may deem proper, including payment of the claim giving rise to such lien. All such sums paid by Landlord and expenses reasonably incurred in connection therewith, including attorneys’ fees and costs, shall be payable to Landlord by Tenant on demand.

11. MAINTENANCE AND REPAIR OF PREMISES.

11.1 Maintenance and Repair by Tenant.
(a) Tenant Maintenance. Tenant shall, at its sole cost and expense, maintain the Premises in good repair and in a neat and clean, first-class condition, including making all necessary repairs and replacements. Tenant’s repair and maintenance obligations include, without limitation, repairs to: (i) floor coverings; (ii) interior partitions; (iii) interior lights and fixtures; (iv) doors, including, among others, hangar doors as well as the hardware, door tracks, door operating mechanisms and door security accessories related thereto; (v) the interior side of demising walls; (vi) fire life safety systems, including sprinklers, fire alarms and/or smoke detectors; (vii) Alterations described in Article 10; (viii) heating, ventilation and air conditioning (HVAC) systems exclusively serving the Premises; (ix) kitchens, if any; (x) plumbing and similar facilities exclusively serving the Premises, whether such items are installed by or on behalf of Tenant or are currently existing at the Premises; and (xi) telephone and data equipment and cabling. Tenants shall keep drainage ditches and gutters on the Premises free of debris.

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servicing of the HVAC systems serving the Premises. Tenant, together with all other tenants occupying the building, shall share the burden of maintaining all shared restroom facilities in a clean, orderly, and sanitary condition at all times. Landlord shall furnish restroom supplies at routine and reasonable intervals.
(b) Tenant Repair. Tenant shall further, at its own costs and expense, repair or restore any damage or injury to all or any part of the Airport caused by Tenant or Tenant’s agents, employees, invitees, licensees, visitors or contractors, including but not limited to repairs or replacements necessitated by (i) the construction or installation of improvements to the Premises by or on behalf of Tenant; and (ii) the moving of any property into or out of the Premises; or (iii) Tenant’s use and occupancy of the Premises. If Tenant fails to make such repairs or replacement within fifteen (15) days after notice from Landlord, then Landlord may, at its option, upon prior reasonable notice to Tenant (except in an emergency) make the required repairs and replacements and the costs of such repairs or replacement (including Landlord’s administrative charge) shall be charged to Tenant as Additional Rent and shall become due and payable by Tenant with the monthly installment of Base Rent next due hereunder. (c) Landscaping. Tenant shall, at Tenant’s sole cost and expense, maintain in a neat and clean, first-class condition all landscaping located within: (a) the Premises; and (b) if applicable, those portions of the common areas of the Airport designated by Landlord in Exhibit A-2 (the “Designated Landscaping Areas”). Tenant shall perform all landscaping activities in compliance with applicable laws, ordinances, regulations and manufacturer specifications. Tenant shall be solely responsible for any injury, property damage or loss arising from its landscaping activities, except to the extent caused by the gross negligence or willful misconduct of Landlord. Tenant shall repair, replace, or restore, at Tenant’s expense, any landscaping, irrigation, or related improvements in the Premises or the Designated Landscaping Areas damaged by Tenant, its agents, employees, contractors, invitees, or subtenants. Tenant’s obligations under this Section 11.1(c) are independent covenants; Tenant shall not be entitled to any abatement, offset, or reduction of Rent by reason of performing such obligations.

11.2 Maintenance and Repair by Landlord.
(a) Landlord Responsibilities. Landlord shall maintain in good repair (i) the structural elements of the Airport, including structural elements of exterior walls and foundations, but excluding any glass and exterior doors (which are Tenant’s responsibility); and (ii) the roof of the Airport, provided such repairs are not necessitated by the actions or inactions of Tenant, Tenant’s agents, employees, invitees, licensees, visitors or contractors or anyone in the employ or control of Tenant. Tenant hereby waives any and all rights under and benefits of subsection 1 of Section 1932, and Sections 1941 and 1942 of the California Civil Code or any similar or successor Laws now or hereby in effect. Landlord shall provide and perform repair and maintenance services by use of its own employees to the extent feasible. (b) Tenant Notice to Landlord. Tenant shall immediately give Landlord written notice, in the manner described in Section 11.2(c), of the need for repair of the items for which Landlord is responsible and if Tenant fails to timely notice Landlord, Tenant shall be solely responsible for the cost of such repair or maintenance. If Tenant or Tenant’s invitees or anyone in the employed or control of Tenant caused any damages necessitating such repair, then Tenant shall pay to Landlord the cost thereof, immediately upon demand therefor. Except as otherwise expressly set forth in this Lease, Tenant waives any right to terminate this Lease or offset or abate Rent by reason of any failure of Landlord to make repairs to the Premises or Airport.

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(c) Notice Method. In order to notify Landlord of the need for a repair or maintenance that is the responsibility of Landlord, as described in Section 11.2(a), Tenant must complete Landlord’s on-line maintenance request form available at https://www.watsonville.gov/2322/Airport. Specifically, Landlord will not accept or respond to ad hoc or on demand requests, except in the case of an emergency, so long as such exception is approved by the Airport manager.

12. ENVIRONMENTAL PROTECTION PROVISIONS.

12.1 Hazardous Materials. “Hazardous Materials” shall mean any material, substance or waste that is or has the characteristic of being hazardous, toxic, ignitable, reactive, flammable, explosive, radioactive or corrosive, including, without limitation, petroleum, solvents, lead, acids, pesticides, paints, printing ink, PCBs, asbestos, materials commonly known to cause cancer or reproductive harm and those materials, substances and/or wastes, including wastes which are or later become regulated by any local governmental authority, the state in which the Premises are located or the United States Government, including, but not limited to, substances defined as “hazardous substances,” “hazardous materials,” “toxic substances” or “hazardous wastes” in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. §9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. §1801, et seq.; the Resource Conservation and Recovery Act; all environmental laws of the state where the Premises are located, and any other environmental law, regulation or ordinance now existing or hereinafter enacted. “Hazardous Materials Laws” shall mean all present and future federal, state and local laws, ordinances and regulations, prudent industry practices, requirements of governmental entities and manufacturer’s instructions relating to industrial hygiene, environmental protection or the use, analysis, generation, manufacture, storage, presence, disposal or transportation of any Hazardous Materials, including without limitation the laws, regulations and ordinances referred to in the preceding sentence.

12.2 Reportable Uses Required Consent. Except as permitted in this Article 12, Tenant hereby agrees that Tenant and Tenant’s officers, employees, representatives, agents, contractors, subcontractors, successors, assigns, subtenants, concessionaires, invitees and any other occupants of the Premises (for purposes of this Article 12, referred to collectively herein as “Tenant Parties”) shall not cause or permit any Hazardous Materials to be used, generated, manufactured, refined, produced, processed, stored or disposed of, on, under or about the Premises or Airport or transported to or from the Premises or Airport without the express prior written consent of Landlord, which consent may be limited in scope and predicated on strict compliance by Tenant with all applicable Hazardous Materials Laws and such other reasonable rules, regulations and safeguards as may be required by Landlord (or any insurance carrier, environmental consultant or lender of Landlord, or environmental consultant retained by any lender of Landlord) in connection with using, generating, manufacturing, refining, producing, processing, storing or disposing of Hazardous Materials on, under or about the Premises or the Airport. In connection therewith, Tenant shall, at its own expense, procure, maintain in effect and comply with all conditions of any and all permits, licenses and other governmental and regulatory approvals required for the storage or use by Tenant or any of Tenant Parties of Hazardous Materials on the Premises or the Airport, including without limitation, discharge of (appropriately treated) materials or wastes into or through any sanitary sewer serving the Premises or the Airport. The foregoing notwithstanding, Tenant may use ordinary and customary materials reasonably required to be used in the course of the Permitted Use, ordinary office supplies (copier, toner, liquid paper, glue, etc.) and common household cleaning materials, so long as such use is in compliance with all Hazardous Materials Laws and does not Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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expose the Premises or neighboring property to any material risk of contamination or damage or expose Landlord to any liability therefor.

12.3 Remediation Obligations. If at any time during the Term, any contamination of the Premises by Hazardous Materials shall occur where such contamination is caused by the act or omission of Tenant or Tenant Parties (“Tenant’s Contamination”), then Tenant, at Tenant’s sole cost and expense, shall promptly and diligently remediate such Hazardous Materials from the Premises or the groundwater underlying the Premises to the extent required to comply with applicable Hazardous Materials Laws. Tenant shall not take any required remedial action in response to any Tenant’s Contamination in or about the Premises or enter into any settlement agreement, consent, decree or other compromise in respect to any claims relating to any Tenant’s Contamination without first obtaining the prior written consent of Landlord, which may be subject to conditions imposed by Landlord as determined in Landlord’s sole discretion. Such prior written consent shall not be required to the extent the delay caused by the requirement to obtain consent may increase the damage to the Premises or the risk of harm to human health, safety, the environment or security caused by the Tenant’s Contamination. Landlord and Tenant shall jointly prepare a remediation plan in compliance with all Hazardous Materials Laws and the provisions of this Lease. In addition to all other rights and remedies of Landlord hereunder, if Tenant does not promptly and diligently take all steps to prepare and obtain all necessary approvals of a remediation plan for any Tenant’s Contamination, and thereafter commence the required remediation of any Hazardous Materials released or discharged in connection with Tenant’s Contamination within thirty (30) days after all necessary approvals and consents have been obtained, and thereafter continue to prosecute such remediation to completion in accordance with the approved remediation plan, then Landlord, at its sole discretion, shall have the right, but not the obligation, to cause such remediation to be accomplished, and Tenant shall reimburse Landlord within fifteen (15) business days of Landlord’s demand for reimbursement of all amounts reasonably paid by Landlord (together with interest on such amounts at the highest lawful rate until paid), when such demand is accompanied by proof of payment by Landlord of the amounts demanded.

Tenant shall promptly deliver to Landlord, copies of hazardous waste manifests reflecting the legal and proper disposal of all Hazardous Materials removed from the Premises as part of Tenant’s remediation of any Tenant’s Contamination. The foregoing notwithstanding, “Tenant’s Contamination” shall not refer to or include any Hazardous Materials that were not solely introduced to the Premises by Tenant or Tenant Parties.

12.4 Environmental Permits. Tenant and Tenant Parties shall be solely responsible for obtaining and complying with, at their cost and sole expense, any environmental permits required for Tenant’s operations under this Lease, independent of any existing permits held by Landlord. Tenant shall not conduct operations or activities under any environmental permit that names Landlord as a secondary discharger or co-permittee. Tenant shall provide prior written notice to Landlord of all environmental permits and permit applications required for any of Tenant’s operations or activities. Tenant acknowledges that Landlord will not consent to being named a secondary discharger or co-permittee for any operations or activities of Tenant, its contractors, assigns or subtenants. Tenant shall strictly comply with any and all environmental permits (including any hazardous waste permit required under the Resource Conservation and Recovery Act or its state equivalent) and must provide, at its own expense, any hazardous waste management facilities complying with all Hazardous Material Laws.

12.5 Landlord’s Inspection Right. Landlord shall have the right to inspect, upon reasonable notice to Tenant, the Premises for Tenant’s compliance with this Article 12. Without limiting the foregoing, Landlord shall conduct at least one (1) inspection of the Premises during Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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each year of the Term pursuant to this Section 12.5. Landlord will give Tenant twenty-four (24) hours’ prior notice of its intention to enter the Premises unless it determines the entry is required for exigent circumstances related to health, safety, or security; provided, however, Landlord agree to use its best commercial efforts to provide Tenant with the maximum advance notice of any such entrance and will, without representation or warranty, attempt to structure such entrance in the least intrusive manner possible. Tenant shall have no claim against Landlord, or any officer, agent, employee, contractor or subcontractor of Landlord by reason of entrance of such Landlord officer, agent, employee, contractor or subcontractor onto the Premises.

12.6 Hazardous Materials Handling Plan. Prior to the execution of this Lease, if requested by Landlord in writing, Tenant shall complete, execute and deliver to Landlord an Environmental Questionnaire Disclosure Statement, the form of which shall be provided by Landlord. To the extent Tenant intends to store, use, treat or dispose of Hazardous Materials on the Premises, Tenant shall prepare and submit together with the Environmental Questionnaire Disclosure Statement, a Hazardous Materials Handling Plan, which Landlord shall have the right to approve or reject in its sole discretion.

12.7 Hazardous Materials Indemnity. In addition to any other provisions of this Lease, Tenant shall, and does hereby agree, to, indemnify, defend (with counsel reasonably acceptable to Landlord) and hold harmless Landlord from any costs, expenses, liabilities, fines or penalties resulting from discharges, emissions, spills, storage or disposal arising from Tenant’s occupancy, use or operations, or any other action by Tenant or its contractors, employees, agents, assigns, invitees, or subtenants giving rise to liability, civil or criminal, or any other action by Tenant or its contractors, employees, agents, assigns, or subtenants giving rise to responsibility under any Hazardous Materials Laws. Tenant’s obligations hereunder shall apply whenever Landlord incurs costs or liabilities for Tenant’s activities or for the activities of Tenant’s contractors, employees, agents, assigns, invitees, or subtenants as provided hereunder. This provision shall survive the expiration or termination of this Lease.

13. ASSIGNMENT AND SUBLETTING.

13.1 Landlord Consent Required. Subject to Sections 13.5 and 13.6 below, Tenant shall not voluntarily or by operation of law, (a) mortgage, pledge, hypothecate or encumber this Lease or any interest therein, or (b) assign or transfer this Lease or any interest herein, sublease the Premises or any part thereof or any right or privilege appurtenant thereto, or allow any other person (the employees and invitees of Tenant excepted) to occupy or use the Premises, or any portion thereof, without first obtaining the written consent of Landlord, which shall be given or withheld in Landlord’s sole discretion. A transfer of greater than fifty percent (50%) interest (whether stock, partnership interest, membership interest or otherwise) of Tenant, either in one (1) transaction or a series of transactions, shall be deemed to be an assignment under this Lease. If Tenant wishes to assign this Lease or sublet the Premises or any part thereof, Tenant shall give Landlord written notice of such intent, accompanied by a copy of the proposed assignment or sublease between Tenant and the proposed assignee or subtenant, together with current and three (3) years’ prior financial statements, if available, for the proposed assignee or subtenant, which financial statement shall be prepared in accordance with generally accepted accounting principles. Tenant shall provide Landlord with any additional information or documentation reasonably requested by Landlord within ten (10) business days after receiving Landlord’s request.

13.2 Landlord Recapture. In the event of an assignment of this Lease or subletting of more than twenty percent (20%) of the rentable square footage of the Premises, Landlord shall Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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have the right to recapture the portion of the Premises that Tenant is proposing to transfer. If Landlord exercises its right to recapture, this Lease shall automatically be amended (or terminated if the entire Premises is being assigned or sublet) to delete the applicable portion of the Premises effective on the proposed effective date of the Transfer, although Landlord may require Tenant to execute a reasonable amendment or other document reflecting such reduction or termination.

13.3 Transfer Premium. If Landlord consents to any requested assignment or sublease (each a “Transfer”) and the assignee or subtenant pays to Tenant an amount in excess of the Rent due under this Lease (after deducting Tenant’s reasonable, actual expenses in obtaining such assignment or sublease, such expenses being limited to (a) any Alterations to the subject space made in order to achieve the Transfer, or contributions to the cost thereof, amortized in equal monthly installments over the then remainder of the Term and (b) any commercially reasonable brokerage commissions, reasonable attorneys’ fees and reasonable advertising and marketing costs incurred by Tenant in connection with the Transfer) (“Transfer Premium”). Tenant shall pay fifty percent (50%) of such Transfer Premium to Landlord as and when the monthly payments are received by Tenant.

13.4 No Release. No Transfer shall release or discharge Tenant of or from any liability, whether past, present or future, under this Lease, and Tenant shall continue to be fully liable hereunder. Each subtenant or assignee shall agree, in a form reasonably satisfactory to Landlord, to comply with and be bound by all of the terms, covenants, conditions, provisions and agreements of this Lease. The assignment or sublease agreement, as the case may be, after approval by Landlord, shall not be amended without Landlord’s prior written consent, and shall contain a provision directing the assignee or subtenant to pay the rent and other sums due thereunder directly to Landlord upon receiving written notice from Landlord that Tenant is in Default under this Lease with respect to the payment of Rent. In the event that, notwithstanding the giving of such notice, Tenant collects any rent or other sums from the assignee or subtenant, then Tenant shall hold such sums in trust for the benefit of Landlord and shall immediately forward the same to Landlord. Landlord’s collection of such rent and other sums shall not constitute an acceptance by Landlord of attornment by such assignee or subtenant.

Tenant shall deliver to Landlord promptly after execution an executed copy of each Transfer and an agreement of compliance by each such subtenant or assignee.

13.5 Expenses and Attorneys’ Fees. Tenant shall pay to Landlord all costs and expenses (including without limitation, the fees of Landlord’s counsel) incurred in connection Landlord’s review and processing of documents regarding any proposed Transfer (which under no circumstances shall be less than $750 per proposed Transfer).

13.6 Limitations on Transfer Reasonable. Tenant acknowledges and agrees that the restrictions, conditions, and limitations imposed by this Article 13 on Tenant’s ability to assign or transfer this Lease or any other interests herein, to sublet the Premises or any part thereof, are, for purposes of California Civil Code Section 1951.4, as amended from time to time, and for all other purposes, reasonable at the time this Lease was entered into and shall be deemed to be reasonable at the time that Tenant seeks to assign or transfer this Lease or any interest herein, to sublet the Premises or any part thereof, or transfer or assign any right or privilege appurtenant to the Premises.

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14. INDEMNITY AND WAIVER OF CLAIMS.

14.1 Tenant Indemnification. Tenant shall indemnify, defend and hold Landlord and Landlord Related Parties harmless against and from all liabilities, obligations, damages, penalties, claims, actions, costs, charges, judgment and expenses (including reasonable attorneys’ fees, costs and disbursements) (collectively referred to as “Losses”), arising from (a) the use of, or any activity done, permitted or suffered in or about the Premises (b) any activity done, permitted or suffered by Tenant or Tenant’s agents, contractors, invitees or licensees in or about the Airport, (c) any act, neglect, fault, willful misconduct of Tenant or Tenant’s agents, or (d) from any breach or default in the terms of this Lease by Tenant or Tenant’s agents, except to the extent such claims arise out of or relate to the gross negligence or willful misconduct of Landlord. If any action or proceeding is brought against Landlord by reason of any such claim, upon notice from Landlord, Tenant shall defend the same at Tenant’s expense by counsel reasonably satisfactory to Landlord. As a material part of the consideration to Landlord, Tenant hereby releases Landlord and its trustees, members, principals, beneficiaries, partners, officers, directors, employees, property managers, Mortgagees, contractors and agents (“Landlord Related Parties”) from responsibility for, waives its entire claim of recovery for and assumes all risks of (i) damage to property or injury to person in or about the Premises or Airport from any cause whatsoever except to the extent caused by the gross negligence or willful misconduct of Landlord or any Landlord Related Parties, or (ii) loss resulting from business interruption or loss of income at the Premises.

14.2 Waiver of Claims. Except in the event of its own gross negligence or willful misconduct, Landlord shall not be liable to Tenant and Tenant hereby waives all claims against Landlord and Landlord Related Parties for any injury or damage to any person or property occurring or incurred in connection with or in any way relating to the Premises or Airport from any cause. Without limiting the foregoing, neither Landlord nor any Landlord Related Party shall be liable for and there shall be no abatement rent for (a) any damage to Tenant’s property stored with or entrusted to any Landlord Related Party, (b) loss of or damage to any property by theft or any other wrongful or illegal act, (c) any injury or damage to person or property resulting from fire, explosion, falling plaster, steam, gas, electricity, water or rain which may leak from any part of the Premises or Airport or from the pipes, appliances, appurtenance or plumbing works thereof or from the roof, street or surface or from any other place or resulting from dampness or any other cause whatsoever or from the acts or omissions of other tenants, occupants or other visitors to the Premises or Airport or from any other cause whatsoever, (d) any diminution or shutting off of light, air or view by any structure which may be erected on lands adjacent to the Premises, (e) any latent or other defects in the Premises or Airport, or (f) resulting from interference with business associated with issuance of permits by the City Council during the annual Watsonville “Airport Open House” or other public events at the Airport. Tenant agrees that in no case shall Landlord or any Landlord Related Party be responsible or liable on any theory for any injury to Tenant’s business, loss of profits, loss of income or any other form of consequential damage.

14.3 Survival/No Impairment. The obligations of Tenant under this Article 14 shall survive any termination of this Lease. The foregoing indemnity obligations shall not relieve any insurance carrier of its obligations under any policies required to be carried by either party pursuant to this Lease, to the extent that such policies cover the peril or currents that results in the claims that is subject to the foregoing indemnity.

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15. INSURANCE.

15.1 Tenant’s Insurance Obligations.
(a) Liability Insurance. Tenant shall maintain in full force throughout the Term, commercial general liability insurance providing coverage on an occurrence form basis with limits of not less than Two Million Dollars ($2,000,000.00) each occurrence for bodily injury and property damage combined, or such larger amount as Landlord may prudently require from time to time, covering bodily injury and property damage liability and product liability if a product is sold from the Premises. Each policy of liability insurance required by this Section shall:
(i) contain a cross liability endorsement or separation of insureds clause; (ii) provide that any waiver of subrogation rights or release prior to a loss does not void coverage; (iii) provide that it is primary to and not contributing with, any policy of insurance carried by Landlord covering the same loss; (iv) provide that any failure to comply with the reporting provisions shall not affect coverage provided to Landlord, its partners, property managers and Mortgagees; and (v) name such other parties in interest as Landlord may from time to time reasonably designate to Tenant in writing, as additional insureds in an Additional Insured Endorsement. Such additional insureds shall be provided at least the same extent of coverage as is provided to Tenant under such policies. The additional insured endorsement shall be in a form at least as broad as endorsement form number CG 20 11 01 96 promulgated by the Insurance Services Office. (b) Personal Property Insurance. Tenant shall maintain in full force and effect on all of its personal property, furniture, furnishings, trade fixtures and equipment from time to time located in, on or upon the Premises (“Tenant’s Property”), and any Alterations (as defined in Article 10) in an amount not less than one hundred percent (100%) of their full replacement value from time to time during the Term, providing protection against all perils, included within the standard form of “all-risk” (i.e., “Special Cause of Loss”) fire and casualty insurance policy. Landlord shall have no interest in the insurance upon Tenant’s Property or Alterations and will sign all documents reasonably necessary in connection with the settlement of any claims or loss by Tenant. Landlord will not carry insurance on Tenant’s Property or Alterations.
(c) Worker’s Compensation Insurance; Employer’s Liability Insurance.

Tenant shall, at Tenant’s expense, maintain in full force and effect during the Term of this Lease, worker’s compensation insurance with not less than the minimum limits required by law, and employer’s liability insurance with a minimum limit of coverage of One Million Dollars ($1,000,000.00).
(d) Pollution Legal Liability.
(i) Commercial Pollution Legal Liability. Tenant shall maintain a Commercial Pollution Legal Liability Insurance with coverage limits of not less than Two Million Dollars ($2,000,000) annual aggregate covering claims arising out of or related to Tenant’s Contamination during the term of this Lease. Such policy shall name the City as an additional insured.
(ii) Contractor’s Pollution Legal Liability. Tenant shall cause any contractors retained for performing any Alterations of the Premises, the total cost of which exceed Two Hundred Thousand dollars ($200,000) to obtain and maintain Contractor's Pollution Liability Insurance covering the general contractor and all subcontractors in an amount of not Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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less than Two Million Dollars ($2,000,000) with a maximum deductible of Ten Thousand Dollars ($10,000). Any such policy shall name the City as an additional insured. (e) Automobile Liability. Tenant shall maintain in full force and effect during the Term of this Lease, Commercial Automobile Liability. Such policy shall be in an amount of not less than One Million Dollars ($1,000,000) combined singled limit.

15.2 Requirements For All Policies. Each policy of insurance required under Section

15.1 shall: (a) be in a form, and written by an insurer, reasonably acceptable to Landlord, (b) be maintained at Tenant’s sole cost and expense, and (c) require at least thirty (30) days’ written notice to Landlord prior to any cancellation, nonrenewal or modification of insurance coverage.

Insurance companies issuing such policies shall have rating classifications of “A-” or better and financial size category ratings of “VII” or better according to the latest edition of the Best Key Rating Guide. All insurance companies issuing such policies shall be admitted carriers licensed to do business in the state where the Airport is located. Any deductible amount under such insurance shall not exceed $5,000. Tenant shall provide to Landlord, upon request, evidence that the insurance required to be carried by Tenant pursuant to this Section, including any endorsement affecting the additional insured status, is in full force and effect and that premiums therefor have been paid. Tenant shall, at least thirty (30) days prior to expiration of each policy, furnish Landlord with certificates of renewal thereof and shall provide Landlord with at least thirty days prior written notice of any cancellation or modification.

15.3 Certificates of Insurance. Upon execution of this Lease by Tenant, and not less than thirty (30) days prior to expiration of any policy thereafter, Tenant shall furnish to Landlord a certificate of insurance reflecting that the insurance required by this Article is in force, accompanied by an endorsement(s) showing the required additional insureds satisfactory to Landlord in substance and form.

16. DAMAGE OR DESTRUCTION.

16.1 Definitions.
(a) “Premises Partial Damage” shall mean damage or destruction to the improvements on the Premises (or Hazardous Material Condition for which Tenant is not responsible), other than Tenant’s Property (as defined at Section 15.1(b)), or Alterations (as defined at Article 10), which can reasonably be repaired in six (6) months or less from the date of the damage or destruction. Landlord shall notify Tenant in writing within thirty (30) days from the date of the damage or destruction as to whether or not the damage is Partial or Total and the estimated time for repairing said damage. Notwithstanding the foregoing, Premises Partial Damage shall not include damage to windows, doors, and/or other similar items which Tenant has the responsibility to repair or replace pursuant to the provisions of Section 11.1. (b) “Premises Total Destruction” shall mean damage or destruction to the Premises (or Hazardous Material Condition for which Tenant is not responsible), other than Tenant’s Property (as defined at Section 15.1(b)), or Alterations (as defined at Article 10), which cannot reasonably be repaired in six (6) months or less from the date of the damage or destruction. Landlord shall notify Tenant in writing within thirty (30) days from the date of the damage or destruction as to whether or not the damage is Partial or Total. (c) “Insured Loss” shall mean damage or destruction to improvements on the Premises, other than Tenant’s Property (as defined at Section 15.1(b)), or Alterations (as Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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defined at Article 10), which was caused by an event required to be covered by the insurance described in Section 15.4, irrespective of any deductible amounts or coverage limits involved. (d) “Replacement Cost” shall mean the cost to repair or rebuild the improvements owned by Landlord (excluding Alterations) at the time of the occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation of Laws governing the Premises, and without deduction for depreciation.
(e) “Hazardous Material Condition” shall mean the occurrence or discovery of a condition involving the presence of, or a contamination by, a Hazardous Material as (defined in Section 12.1), in, on, or under the Premises which requires repair, remediation, or restoration.

16.2 Partial Damage - Insured Loss. If a Premises Partial Damage that is an Insured Loss occurs, Landlord shall repair such damage (but not Tenant’s Property or Alterations) as soon as reasonably possible and this Lease shall continue in full force and effect; provided, however, that Tenant shall, at Landlord’s election, make the repair of any damage or destruction the total cost to repair of which is $10,000 or less, and, in such event, Landlord shall make any applicable insurance proceeds available to Tenant on a reasonable basis for that purpose.

Notwithstanding the foregoing, if the required insurance was not in force or the insurance proceeds are not sufficient to effect such repair, Tenant shall promptly contribute the shortage in proceeds (except as to the deductible which is Tenant’s responsibility) as and when required to complete said repairs. In the event, however, such shortage was due to the fact that, by reason of the unique nature of the improvements, full replacement cost insurance coverage was not commercially reasonable and available, Landlord shall have no obligation to fully restore the unique aspects of the Premises unless Tenant provides Landlord with the funds to cover same, or adequate assurance thereof, within ten (10) days following receipt of written notice of such shortage and request therefor. If Landlord receives said funds or adequate assurance thereof within said ten (10) day period, the party responsible for making the repairs shall complete them as soon as reasonably possible and this Lease shall remain in full force and effect. If such funds or assurance are not so received, Landlord may nevertheless elect by written notice to Tenant within ten (10) days thereafter to: (a) make such restoration and repair as is commercially reasonable with Landlord paying any shortage in proceeds, in which case this Lease shall remain in full force and effect, or (b) have this Lease terminate thirty (30) days thereafter. Tenant shall not be entitled to reimbursement of any funds contributed by Tenant to repair any such damage or destruction. Premises Partial Damage due to flood or earthquake shall be subject to Section 16.3, notwithstanding that there may be some insurance coverage, but the net proceeds of any such insurance shall be made available for the repairs if made by either Party.

16.3 Partial Damage - Uninsured Loss. If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by a negligent or willful act of Tenant (in which event Tenant shall make the repairs at Tenant’s expense), Landlord may either: (a) repair such damage as soon as reasonably possible at Landlord’s expense, in which event this Lease shall continue in full force and effect, or (b) terminate this Lease by giving written notice to Tenant within thirty (30) days after receipt by Landlord of knowledge of the occurrence of such damage.

Such termination shall be effective sixty (60) days following the date of such notice. In the event Landlord elects to terminate this Lease, Tenant shall have the right within ten (10) days after receipt of the termination notice to give written notice to Landlord of Tenant’s commitment to pay for the repair of such damage without reimbursement from Landlord. Tenant shall provide Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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Landlord with said funds or satisfactory assurance thereof within thirty (30) days after making such commitment. In such event this Lease shall continue in full force and effect, and Landlord shall proceed to make such repairs as soon as reasonably possible after the required funds are available. If Tenant does not make the required commitment, this Lease shall terminate as of the date specified in the termination notice.

16.4 Total Destruction. Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, this Lease shall terminate sixty (60) days following such Destruction.

If the damage or destruction was caused by the gross negligence or willful misconduct of Tenant, Landlord shall have the right to recover Landlord’s damages from Tenant.

16.5 Damage Near End of Term. If at any time during the last six (6) months of this Lease Term (or the last 6 months of any Renewal Term) there is damage for which the cost to repair exceeds one month’s Base Rent, whether or not an Insured Loss, Landlord may terminate this Lease effective sixty (60) days following the date of occurrence of such damage by giving a written termination notice to Tenant within thirty (30) days after the date of occurrence of such damage. Notwithstanding the foregoing, if Tenant at that time has an exercisable option to extend this Lease or to purchase the Premises, then Tenant may preserve this Lease by (a) exercising such option and (b) providing Landlord with any shortage in insurance proceeds (or adequate assurance thereof) needed to make the repairs on or before the earlier of (i) the date which is ten (10) days after Tenant’s receipt of Landlord’s written notice purporting to terminate this Lease, or (ii) the day prior to the date upon which such option expires. If Tenant duly exercises such option during such period and provides Landlord with funds (or adequate assurance thereof) to cover any shortage in insurance proceeds, Landlord shall, at Landlord’s commercially reasonable expense, repair such damage as soon as reasonably possible and this Lease shall continue in full force and effect. If Tenant fails to exercise such option and provide such funds or assurance during such period, then this Lease shall terminate on the date specified in the termination notice and Tenant’s option shall be extinguished.

16.6 Abatement of Rent. In the event of Premises Partial Damage, Premises Total Destruction or Hazardous Material Condition for which Tenant is not responsible under this Lease, the Rent payable by Tenant for the period required for the repair, remediation or restoration of such damage shall be abated in proportion to the degree to which Tenant’s use of the Premises is impaired, and such abatement shall be Tenant’s sole remedy for such impairment of use. All other obligations of Tenant hereunder shall be performed by Tenant, and Landlord shall have no liability for any such damage, destruction, Hazardous Material Condition, remediation, repair or restoration except as provided herein.

17. CONDEMNATION. If the whole or if any material part of the Premises or Airport is taken or condemned for any public or quasi-public use under either state or federal law, by eminent domain or purchase in lieu thereof (a “Taking”), and (a) such Taking renders the Premises or Airport unsuitable, in Landlord’s reasonable opinion, for the purposes for which they were constructed; or (b) the Premises or Airport cannot be repaired, restored or replaced at reasonable expense to an economically profitable unit, then Landlord may, at its option, terminate this Lease as of the date possession vests in the condemning party. If twenty-five percent (25%) or more of the Premises is taken and if the Premises remaining after such Taking and any repairs by Landlord would be untenantable (in Tenant’s reasonable opinion) for the conduct of Tenant’s business operations, Tenant shall have the right to terminate this Lease as of the date possession vests in the condemning party. The terminating party shall provide written notice of termination to the other party within thirty (30) days after it first Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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receives notice of the Taking. The termination shall be effective as of the effective date of any order granting possession to, or vesting legal title in, the condemning authority. If this Lease is not terminated, Base Rent shall be appropriately adjusted to account for any reduction in the square footage of the Premises. If only a part of the Premises is subject to a Taking and this Lease is not terminated, Landlord, with reasonable diligence, will restore the remaining portion of the Premises as nearly as practicable to the condition immediately prior to the Taking.

Tenant hereby waives any and all rights it might otherwise have pursuant to Section 1265.130 of the California Code of Civil Procedure, or any similar or successor Laws. Landlord shall be entitled to any and all compensation, damages, income, rent, awards or any interest thereon which may be paid or made in connection with any such Taking, and Tenant shall have no claim against Landlord for the value of any expired term of this Lease or otherwise; provided, however, that Tenant shall be entitled to receive any award separately allocated by the condemning authority to Tenant for Tenant’s relocation expenses, the value of Tenant’s fixture, equipment and personal property (specifically excluding components of the Premises which under this Lease or by law are or at the expiration of the Term will become the property of Landlord, including, without limitation, fixtures and Alterations), or Tenant’s loss of business goodwill, provide that such award does not reduce any award otherwise allocable or payable to Landlord.

18. DEFAULT.

18.1 Events of Default. The occurrence of any of the following shall constitute a “Default” by Tenant:
(a) Tenant fails to make any payment of Rent when due, if payment in full is not received by Landlord within five (5) days after written notice that it is past due. (b) Tenant abandons the Premises as defined in Section 1951.3 of the California Civil Code.
(c) Tenant fails timely to deliver any subordination document or estoppel certificate requested by Landlord within the applicable time period specified hereinbelow. (d) Tenant violates the restrictions on Transfer set forth in Article 13. (e) Tenant ceases doing business as a going concern; makes an assignment for the benefit of creditors; is adjudicated an insolvent, files a petition (or files an answer admitting the material allegations of a petition) seeking relief under any state or federal bankruptcy or other statute, law or regulation affecting creditors’ rights; all or substantially all of Tenant’s assets are subject to judicial seizure or attachment and are not released within thirty (30) days, or Tenant consents to or acquiesces in the appointment of a trustee, receiver or liquidator for Tenant or for all or any substantial part of Tenant’s assets. (f) Tenant fails to perform or comply with any provision of this Lease other than those described in (a) through (e) above, and does not fully cure such failure within fifteen (15) days after notice to Tenant or, if such failure cannot be cured within such fifteen (15) day period, Tenant fails within such fifteen (15)-day period to commence, and thereafter diligently proceed with, all actions necessary to cure such failure as soon as reasonably possible but in all events within ninety (90) days of such notice.

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18.2 Remedies. Upon the occurrence of any Default under this Lease, whether enumerated in Section 18.1 or not, Landlord shall have the option to pursue any one or more of the following remedies without any notice (except as expressly prescribed herein) or demand whatsoever. Without limiting the generality of the foregoing, Tenant hereby specifically waives notice and demand for payment of Rent or other obligations, and waives any and all other notices or demand requirements imposed by applicable Law:
(a) Terminate this Lease and Tenant’s right to possession of the Premises and recover from Tenant an award of damages equal to the sum of the following:
(i) The Worth at the Time of Award of the unpaid Rent which had been earned at the time of termination;
(ii) The Worth at the Time of Award of the amount by which the unpaid Rent which would have been earned after termination until the time of award exceeds the amount of such Rent loss that Tenant affirmatively proves could have been reasonably avoided;
(iii) The Worth at the Time of Award of the amount by which the unpaid Rent for the balance of the Term after the time of award exceeds the amount of such Rent loss that Tenant affirmatively proves could be reasonably avoided discounted to the then present value;
(iv) Any other amount necessary to compensate Landlord for all the detriment either proximately caused by Tenant’s failure to perform Tenant’s obligations under this Lease or which in the ordinary course of things would be likely to result therefrom; and (v) All such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time under applicable law.

The “Worth at the Time of Award” of the amounts referred to in parts (i) and (ii) above, shall be computed by allowing interest at the lesser of a per annum rate equal to: (A) the greatest per annum rate of interest permitted from time to time under applicable law, or (B) the Prime Rate plus 5% as determined by Landlord, and as referred to in part (iii) above, shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award plus one percent (1%).
(b) Employ the remedy described in California Civil Code § 1951.4 (Landlord may continue this Lease in effect after Tenant’s breach and abandonment and recover Rent as it becomes due, if Tenant has the right to sublet or assign, subject only to reasonable limitations); or
(c) Notwithstanding Landlord’s exercise of the remedy described in California Civil Code § 1951.4 in respect of an event or events of Default, at such time thereafter as Landlord may elect in writing, to terminate this Lease and Tenant’s right to possession of the Premises and recover an award of damages as provided above.

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regardless of Landlord’s knowledge of such preceding breach at the time of acceptance of such Rent. No waiver by Landlord of any breach hereof shall be effective unless such waiver is in writing and signed by Landlord.

18.4 Waiver of Redemption, Reinstatement, or Restoration. Tenant hereby waives any and all rights conferred by Section 3275 of the Civil Code of California and by Sections 1174(c) and 1179 of the Code of Civil Procedure of California and any and all other laws and rules of law from time to time in effect during the Lease Term or thereafter providing that Tenant shall have any right to redeem, reinstate or restore this Lease following its termination as a result of Tenant’s breach.

18.5 Remedies Cumulative. No right or remedy herein conferred upon or reserved to Landlord is intended to be exclusive of any other right or remedy, and each and every right and remedy shall be cumulative and in addition to any other right or remedy given hereunder or now or hereafter existing by agreement, applicable Law or in equity. In addition to other remedies provided in this Lease, Landlord shall be entitled, to the extent permitted by applicable Law, to injunctive relief, or to a decree compelling performance of any of the covenants, agreements, conditions or provisions of this Lease, or to any other remedy allowed to Landlord at law or in equity. Forbearance by Landlord to enforce one or more of the remedies herein provided upon an event of Default shall not be deemed or construed to constitute a waiver of such Default.

18.6 Landlord’s Right to Perform Tenant’s Obligations. If Tenant is in Default of any of its non-monetary obligations under this Lease, in addition to the other rights and remedies of Landlord provided herein, then Landlord may at Landlord’s option, but without any obligation to do so and without further notice to Tenant, perform any such term, provision, covenant or condition or make any such payment and Landlord by reason of doing so shall not be liable or responsible for any loss or damage thereby sustained by Tenant. If Landlord performs any of Tenant’s obligations hereunder in accordance with this Section 18.6, the full amount of the costs and expense incurred or the payments so made or the amount of the loss so sustained shall be immediately be owed by Tenant to Landlord, and Tenant shall promptly pay to Landlord upon demand, as Additional Rent, the full amount thereof with interest thereon from the day of payment by Landlord the lower of ten percent (10%) per annum, or the highest rate permitted by applicable law.

18.7 Severability. This Article 18 shall be enforceable to the maximum extent such enforcement is not prohibited by applicable Law, and the unenforceability of any portion thereof shall not thereby render unenforceable any other portion.

19. LIMITATION OF LIABILITY. Notwithstanding anything to the contrary contained in this Lease, the liability of Landlord (and of any successor landlord) shall be governed by applicable state and federal laws for so long as Landlord is a public entity and, at any time thereafter, shall be limited to the interest of Landlord in the Airport as the same may from time to time be encumbered. Tenant shall look solely to Landlord’s interest in the Airport for the recovery of any judgment. Neither Landlord nor any Landlord Related Party shall be personally liable for any judgment or deficiency, and in no event shall Landlord or any Landlord Related Party be liable to Tenant for any lost profit, damage to or loss of business or a form of special, indirect or consequential damage. Before filing suit for an alleged default by Landlord, Tenant shall give Landlord and the Mortgagee(s) whom Tenant has been notified hold Mortgages (defined in Article 22 below), notice and reasonable time to cure the alleged default.

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20. SURRENDER OF PREMISES. At the termination of this Lease or Tenant’s right of possession, Tenant shall remove Tenant’s property including any furniture, fixtures, equipment or cabling installed by or for the benefit of Tenant from the Premises, and quit and surrender the Premises to Landlord, broom clean, and in good order, condition and repair, ordinary wear and tear and damage which Landlord is obligated to repair hereunder excepted. Landlord may, by notice to Tenant not less than sixty (60) days prior to the Expiration Date (except in the event of a termination of this Lease prior to the scheduled Expiration Date, in which event no advance notice shall be required) require Tenant, at Tenant’s expense, remove any Alterations (except as otherwise provided at Section 10.2, above) and repair any damage caused by such removal. If Tenant fails to remove any of Tenant’s property, or to restore the Premises to the required condition, Landlord, at Tenant’s sole cost and expense, shall be entitled (but not obligated) to remove and store Tenant’s property and/or perform such restoration of the Premises. Landlord shall not be responsible for the value, preservation or safekeeping of Tenant’s property. Tenant shall pay Landlord, upon demand, the expenses and storage charges incurred. If Tenant fails to remove Tenant’s property from the Premises or storage, within thirty (30) days after notice, Landlord may deem all or any part of Tenant’s property to be abandoned and, at Landlord’s option, title to Tenant’s property shall vest in Landlord or Landlord may dispose of Tenant’s property in any manner Landlord deems appropriate.

21. HOLDING OVER. If Tenant fails to surrender all or any part of the Premises at the termination of this Lease, occupancy of the Premises after termination shall be that of a tenancy at sufferance. Tenant’s occupancy shall be subject to all the terms and provisions of this Lease and Tenant shall pay an amount (on a per month basis without reduction for partial months during the holdover) equal to 200% of the sum of the Base Rent due for the period immediately preceding the holdover; provided, however, that if (a) Landlord and Tenant are, in Landlord’s reasonable judgment, actively and continuously negotiating in good faith the terms of a new written lease for the Premises, and (b) Tenant is not then in default beyond any applicable notice and cure period under this Lease, Landlord may, in Landlord’s sole and absolute discretion, waive the increased holdover rental rate described herein for a period not to exceed ninety (90) consecutive days following the expiration or earlier termination of the Term (“Negotiation Waiver Period”). During the Negotiation Waiver Period, Tenant shall pay Base Rent at the same rate as the Base Rent payable for the last month of the Term, plus all Additional Rent and other amounts due hereunder. No holding over by Tenant shall operate to extend the Term. If Tenant does not surrender possession at the end of the Term or sooner termination of this Lease, Tenant shall indemnify and hold Landlord harmless from and against any and all losses or liability resulting from delay in Tenant so surrendering the Premises including, without limitations, any loss or liability resulting from any claim against Landlord made by any succeeding tenant or prospective tenant founded on or resulting from such delay.

Any holding over by Tenant with the written consent of Landlord shall thereafter constitute a lease from month to month.

22. NO SUBORDINATION BY LANDLORD. Landlord shall not subordinate its fee title in the Airport to any lien arising from or related to any financing obtained by Tenant. The Lease, and the rights of Tenant shall be subject and subordinate in all respects to: (i) all present and future mortgages on the Premises and the property upon which the Premises is located, including all modifications, extensions, supplements, consolidations and replacements thereof; and (ii) the provisions and requirements of any existing or future agreement between the Landlord and the United States, relative to the development, operation or maintenance of the Airport. Tenant shall not encumber the Lease or its interest therein without first obtaining the written consent of Landlord, which shall be given or withheld in Landlord’s sole discretion.

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23. TENANT’S ESTOPPEL CERTIFICATE. Within ten (10) days after written request therefor, Tenant shall execute and deliver to Landlord, in a form provided by or satisfactory to Landlord, an estoppel certificate stating, that this Lease is in full force and effect, describing any amendments or modifications thereto, acknowledging that this Lease is subordinate or prior, as the case may be, to any Mortgage and stating any other information Landlord may reasonably request, including the Term, the monthly Base Rent, the date to which Rent has been paid, the amount of any security deposit or prepaid rent, whether either party hereto is in default under the terms of the Lease, and whether Landlord has completed any construction obligations hereunder. Any such estoppel certificate may be relied upon by any person or entity purchasing, acquiring an interest in or extending finance with respect to the Airport, or any part thereof. If Tenant fails to provide such certificate within ten (10) days as herein provided, such failure shall at Landlord’s election, constitute a Default and Tenant shall be deemed to have given such certificate as above provided without modification and shall be deemed to have admitted the accuracy of any information supplied by Landlord to a prospective purchaser or mortgagee or deed of trust holder.

24. RELOCATION. Landlord shall have the right to relocate the entire Premises upon all the following terms, covenants and conditions: (a) Landlord shall have the right to relocate the Premises on not less than ninety (90) days prior written notice given to Tenant at any time during the Term or any extension or renewal thereof; (b) the relocated Premises must be of substantially comparable size to the initial Premises; (c) if Tenant has not occupied the Premises, Landlord shall reimburse Tenant for (i) the necessary and reasonable costs incurred by Tenant in planning for the space of the initial Premises which have been previously improved by Landlord and have no benefit to Tenant’s in the relocation Premises and (ii) such other costs as Tenant may incur as a direct result of relocation which have been previously approved by Landlord; (d) if Tenant is occupying the Premises at the time Landlord gives notices of any such relocation, Landlord shall pay the cost of moving Tenant, its property and equipment to the relocated Premises and shall, without cost or expense to Tenant, improve the new Premises with improvements substantially similar to those located in the space Tenant is to vacate; and (e) all of the other terms, covenants, and conditions of this Lease shall remain unchanged and in full force and effect, except that the Basic Lease Information shall be revised (i) to identify the location of the Premises after such relocation; (ii) state the new rentable square feet of the new Premises, Base Rent and Security Deposit relative to the relocated Premises.

25. NOTICE. All notices shall be in writing and delivered by hand or sent by registered, express, or certified mail, with return receipt requested or with delivery confirmation requested from the U.S. postal service, or sent by overnight or same day courier service at the party’s respective Notice Address(es) set forth in the Basic Lease Information (“Notice Address”).

Each notice shall be deemed to have been received on the earlier to occur of actual delivery or the date on which delivery is refused, or, if Tenant has vacated the Premises or any other Notice Address of Tenant without providing a new Notice Address, three (3) days after notice is deposited in the U.S. mail or with a courier service in the manner described above. Either party may, at any time, change its Notice Address (other than to a post office box address) by giving the other party written notice of the new address.

26. NON-DISCRIMINATION; LABOR PROVISIONS.

26.1 Equal Opportunity. During the Term, and with respect to person(s) in the Airport or Premises or employment or employees at the Premises, Tenant agrees as follows:

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(a) Tenant will not discriminate against any guest, visitor, invitee, customer, employee of Tenant or applicant for employment because of employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender identity, gender expression, age, sexual orientation, or military and veteran status. The employees of Tenant shall be treated during employment, without regard to their employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender identity, gender expression, age, sexual orientation, or military and veteran status. Such action shall include, but not be limited to, the following:
employment, upgrading demotion, or transfer, recruitment or recruitment advertising, layoff or termination, rate of pay or other forms of compensation, selection for training, including apprenticeship. Tenant agrees to post in conspicuous places, notices to be provided by the applicable government agencies, setting forth the provisions of this nondiscrimination provision. (b) Tenant will, in all solicitations or advertisements for employees placed by or on behalf of Tenant, state that all qualified applicants will receive consideration for employment without regard to employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender identity, gender expression, age, sexual orientation, or military and veteran status.
(c) Tenant will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding a notice, advising the labor union or worker’s representative of Tenant’s commitments under this Equal Opportunity Clause and shall post copies of notice in conspicuous places available to employee and applications for employment.
(d) Tenant, through any approved sublease, shall require each of its subtenants to comply with the nondiscrimination provisions contained in this Section 26.1.

26.2 Prevailing Wages and Related Requirements. Tenant acknowledges and agrees any Alterations made by or on behalf of Tenant to the Premises, or any portion thereof, which are paid for in whole or in part by Landlord or which are considered to have been paid for in whole or in part by Landlord (e.g. by virtue of any rents that are reduced, waived or forgiven) will constitute “construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part out of public funds…”. (California Labor Code section 1720.) Tenant shall comply with any applicable laws, rules and regulations related to construction wages and other construction matters, if and to the extent applicable to the Premises after the Commencement Date including, but not limited to, the provision of Labor Code Section 1720 et seq. From and after the Commencement Date, Tenant shall indemnify, defend (with counsel reasonably acceptable to Landlord), and hold harmless the Landlord Related Parties against any claim for damages, compensation, fines, penalties or other amounts arising out of the failure or alleged failure of any person or entity (including Tenant and its contractors) to pay prevailing wages as determined pursuant to Labor Code Sections 1720 et seq., to employ apprentices pursuant to Labor Code Sections 1777.5 et seq., to require any contractor or subcontractor listed on a bid proposal for a public works project be registered with the Department of Industrial Relations pursuant to Labor Code Section 1725.5, to comply with the other applicable provisions of Labor Code Sections 1720 et seq. and 1777.5 et seq., to meet the conditions of Section 1771.4 of the Labor Code, to require the general contractor for any prevailing wage work to furnish electronic certified payroll records directly to the Labor Commissioner at: https://apps.dir.ca.gov/ecpr/das/altlogin, or to comply with any other Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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regulation related to public contracts. Tenant’s obligation to indemnify, defend and hold harmless under this Section 26.3 shall survive termination of this Lease, and shall be interpreted broadly so as to apply to any legal or administrative proceeding, arbitration, or enforcement action.

27. CLOSURE OF AIRPORT. During any period when the Airport is closed or civil aircraft grounded by any lawful authority restricting the use of the Airport or civil aircraft in such a manner as to interfere substantially with the use of the Premises by Tenant, the Rent payable under this Lease shall abate, and the period of such closure, at the written election of Tenant delivered to Landlord, shall be added to the term of this Lease. During the time of war or national emergency, Landlord shall have the right to lease or lend the landing area of the Airport, or any part thereof, to the United States Government or State government for military or naval use, and if such lease or lending is executed and the use thereunder materially interferes with the use of the Premises by Tenant, the Rent shall abate, and this Lease shall be suspended or terminated, as determined by Landlord.

28. MISCELLANEOUS.

28.1 Governing Law. This Lease shall be interpreted and enforced in accordance with the Laws of the State of California and Landlord and Tenant hereby irrevocably consent to the jurisdiction and proper venue of such state.

28.2 Severability. If any section, term or provision of this Lease is held invalid by a court of competent jurisdiction, all other sections, terms or severable provisions of this Lease shall not be affected thereby, but shall remain in full force and effect.

28.3 Attorneys’ Fees. In the event of an action, suit, arbitration or proceeding brought by Landlord or Tenant to enforce any of the other’s covenants and agreements in this Lease, the prevailing party shall be entitled to recover from the non-prevailing party any costs, expenses (including out of pocket costs and expenses) and reasonable attorneys’ fees incurred in connection with such action, suit or proceeding. Without limiting the generality of the foregoing, if Landlord utilizes the services of an attorney for the purpose of collecting any Rent due and unpaid by Tenant or in connection with any other breach of this Lease by Tenant following a written demand of Landlord to pay such amount or cure such breach, Tenant agrees to pay Landlord reasonable actual attorneys’ fees for such services, irrespective of whether any legal action may be commenced or filed by Landlord.

28.4 Force Majeure. Whenever a period of time is prescribed for the taking of an action by Landlord or Tenant (other than the payment of Rent), the period of time for the performance of such action shall be extended by the number of days that the performance is actually delayed due to strikes, acts of God, shortages of labor or materials, war, terrorist acts, pandemics, civil disturbances, extreme weather and other causes beyond the reasonable control of the performing party (“Force Majeure”).

28.5 Sale. Landlord shall have the right to transfer and assign, in whole or in part, all of its rights and obligations under this Lease and in the Airport. Upon transfer, Landlord shall be released from any further obligations hereunder and Tenant agrees to look solely to the successor in interest of Landlord for the performance of such obligations, provided that any successor pursuant to a voluntary, third party transfer (but not as part of an involuntary transfer resulting from a foreclosure or deed in lieu thereof) shall have assumed Landlord’s obligations under this Lease.

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28.6 Signs. Tenant shall not place any sign upon the Premises without Landlord’s prior written consent. All signage shall comply with Landlord’s signage design criteria, as exist from time to time. In addition, any style, size, materials and attachment method of any such signage shall be subject to Landlord’s prior written consent. The installation of any sign on the Premises by or for Tenant shall be subject to the provisions of this Lease. At Tenant’s sole cost and expense, Tenant shall install and maintain any such signs on the Premises in compliance with all applicable laws, rules and regulations. Unless otherwise expressly agreed herein, Landlord reserves the right to install, and retain all revenues from the installation of, such advertising signs on the Premises, including the roof, as do not unreasonably interfere with the conduct of Tenant’s business.

28.7 Brokers. Landlord and Tenant each represents and warrants to the other that neither it nor its officers or agents nor anyone acting on its behalf has dealt with any real estate broker except the Broker(s) specified in the Basic Lease Information in the negotiating or making of this Lease. Each party agrees to indemnify, defend and hold harmless the other from any claim or claims, and costs and expenses, including attorneys’ fees, incurred by the indemnified party in conjunction with any such claim or claims of any other broker or brokers to a commission in connection with this Lease as a result of the actions of the indemnifying party.

Provided that this Lease is fully executed by the parties hereto, Landlord shall pay a commission to Landlord’s Broker pursuant to a separate written agreement between Landlord and Landlord’s Broker, and Landlord’s Broker shall be responsible for any fee or commission payable to Tenant’s Broker, if any.

28.8 Access by Landlord. In addition to access provided by this Lease, Landlord shall be allowed access to the Premises at all reasonable times throughout the term of this Lease, for any reasonable purpose upon prior written notice to Tenant. Landlord will normally give Tenant a minimum of twenty-four (24) hours prior notice of an intention to enter the Premises, unless the entry is reasonably required on an emergency basis for safety, environmental, operations or security purposes. Tenant shall ensure that a telephone roster is maintained at all times for oncall persons representing Tenant who will be available on short notice, 24 hours a day, 365 days per year, and have authority to use all keys necessary to gain access to the Premises to facilitate entry in time of emergency. Tenant shall ensure that Landlord has a current roster of such on-call personnel and their phone numbers. Tenant shall not change any existing locks, or attach any additional locks or similar devices to any door or window, without providing to Landlord one set of keys therefor. All keys must be returned to Landlord at the expiration or termination of this Lease. Tenant shall have no claim against Landlord for exercise of its rights of access hereunder. Tenant agrees to allow Landlord and its utility supplier reasonable access to the Premises for operation, maintenance, repair and replacement of these utilities systems as may be required. In executing operation, maintenance, repair or replacement of these systems, Landlord agrees to take commercially reasonable steps to limit interference with the use of the Premises by Tenant.

28.9 Waiver of Right to Jury Trial. Landlord and Tenant waive their respective rights to trial by jury of any contract or tort claim, counterclaim, cross-complaint, or cause of action in any action, proceeding, or hearing brought by either party against the other on any matter arising out of or in any way connected with this Lease, the relationship of Landlord and Tenant, or Tenant’s use or occupancy of the Premises, including without limitation any claim of injury or damage or the enforcement of any remedy under any current or future law, statute, regulation, code, or ordinance. Landlord and Tenant agree that this paragraph constitutes a written consent to waiver of trial by jury within the meaning of California Code of Civil Procedure Section 631(f)(2), and Tenant does hereby authorize and empower Landlord to file this Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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paragraph and/or this Lease, as required, with the clerk or judge of any court of competent jurisdiction as a written consent to waiver of jury trial. If the waiver set forth in this Section 27.9 is determined by any court to be invalid because it was executed prior to the commencement of any action, then Landlord and Tenant each covenant and agree to execute and deliver to the other, within five (5) days of a written request by the other, a waiver of the right to trial by jury similar in terms and scope to the waiver set forth in this Section 28.9 at such time following the commencement of such action as such waiver , if then made, would be valid.

28.10 Recordation. Neither this Lease, nor any memorandum, affidavit nor other writing with respect thereto, shall be recorded by Tenant or by anyone acting through, under or on behalf of Tenant without the prior written consent of Landlord, which may be granted or withheld in Landlord’s sole and absolute discretion. Any recording thereof in violation of this provision shall make this Lease null and void at Landlord’s election.

28.11 Article and Section Titles. The Article and Section titles use herein are not to be consider a substantive part of this Lease, but merely descriptive aids to identify the paragraph to which they referred. Use of the masculine gender includes the feminine and neuter, and vice versa.

28.12 Authority. If Tenant is a corporation, partnership, trust, association or other entity, Tenant and each person executing this Lease on behalf of Tenant does hereby covenant and warrant that (a) Tenant is duly incorporated or otherwise established or formed and validly existing under the laws of its state of incorporation, establishment or formation, (b) Tenant has and is duly qualified to do business in California, (c) Tenant has full corporate, partnership, trust, association or other power and authority to enter into this Lease and to perform all Tenant’s obligations hereunder, and (d) each person (and all of the persons if more than one signs) signing this Lease on behalf of Tenant is duly and validly authorized to do so. Upon execution hereof and at Landlord’s request, Tenant shall provide Landlord with a written certification of its Corporate Secretary or other appropriate authorizing officer or partner attesting that at a duly noticed meeting of its Board of Directors or other governing body a resolution has been unanimously adopted approving Tenant’s execution hereof, thereby binding itself to the terms of this Lease and identifying the person(s) authorized to execute this Lease on behalf of Tenant.

28.13 Quiet Possession. Landlord covenants and agrees with Tenant that, upon Tenant’s payment of Rent and observing and performing all of the terms, covenants, conditions, provisions and agreements of this Lease on Tenant’s part to be observed or performed, Tenant shall have the quiet possession of the Premises throughout the Term.

28.14 Asbestos Notification for Commercial Property Constructed Before 1979. Tenant acknowledges that Landlord has advised Tenant that, because of its age, the Airport may contain asbestos-containing materials (“ACMs”). If Tenant undertakes any Alterations as may be permitted by Article 10, Tenant shall, in addition to complying with the requirements of Article 10, undertake the Alterations in a manner that avoids disturbing ACMs present in the Airport. If ACMs are likely to be disturbed in the course of such work, Tenant shall encapsulate or remove the ACMs in accordance an approved asbestos-removal plan and otherwise in accordance with all applicable Environmental Laws, including giving all notices required by California Health & Safety Code Sections 25915-25919.7.

28.15 Lead Warning Statement. Tenant acknowledges that Landlord has advised Tenant that buildings built before 1978 may contain lead-based paints (“LBP”). Lead from paint, paint chips and dust can pose health hazards if not managed properly. Subject to Article 10 of Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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this Lease, Tenant may at its sole cost and expense, have a state certified LBP Inspector complete a LBP inspection and abatement and provide an abatement certification to Landlord.

Landlord has no specific knowledge of the presence of lead-based paint in the Premises.

28.16 OFAC Certification. Tenant represents, warrants and covenants that: (a) Tenant and its principals are not acting, and will not act, directly or indirectly, for or on behalf of any person, group, entity, or nation named by any Executive Order or the United States Treasury Department as a terrorist, “Specially Designated and Blocked Person” or other banned or blocked person, entity, nation, or transaction pursuant to any law, order, rule or regulation that is enforced or administered by the Office of Foreign Assets Control; and (b) Tenant acknowledges that the breach of this representation, warranty and covenant by Tenant shall be an immediate Default under the Lease.

28.17 Certified Access Specialist Disclosure. Inspection by Certified Access Specialist.

Landlord discloses that the Premises have not undergone inspection by a Certified Access Specialist as referenced in California Civil Code Section 1938 subsection (e) which provides: "A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises." Pursuant to the foregoing Section 1938(e), Tenant acknowledges and agrees that, if Tenant wishes to have the Premises inspected by a CASp: (i) Tenant must notify Landlord on or before the date when Tenant executes this Lease pursuant to the election below; (ii) the inspection will be at Tenant's sole cost and expense; (iii) the inspection must be scheduled through Landlord and in coordination with the Airport manager; (iv) any repairs or modifications necessary to correct any violation of construction-related accessibility standards that is noted in the CASp report shall be Tenant’s responsibility; and (v) Tenant must provide a copy of the CASp report to Landlord on completion. By initialing below, Tenant represents that:

Tenant wishes to have a CASp inspection of the Premises Initials: ______________ Tenant hereby waives its right a CASp inspection of the Premises Initials: _____________

28.18 Time of the Essence. Time is of the essence of this Lease and each and all of its provisions.

28.19 Entire Agreement. This Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this Lease, and no prior agreements or understandings pertaining to any such matter shall be effective for any purpose. No provision of this Lease may be amended or added except by an agreement in writing signed by the parties hereto or their respective successors-in-interest.

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modifications to those rules shall be binding upon Tenant upon Landlord’s delivery of a copy to Tenant.

28.21 Notice to Federal Aviation Administration. Tenant shall comply with the notification and review requirements covered in Part 77 of the Federal Aviation Administration regulations (14 C.F.R. Part 77) 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.

28.22 No 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 40103(e) of Title 14 of the United States Code.

28.23 Financial Statement. Within thirty (30) days after Landlord’s written request, Tenant shall deliver to Landlord the then current financial statements of Tenant, including a balance sheet and profit and loss statement for the most recent prior year, all prepared in accordance with generally accepted accounting principles consistently applied and shall be certified as accurate in all material respect by an officer of Tenant.

28.24 Relocation Benefits. Tenant acknowledges that upon the expiration or earlier termination of this Lease, for any reason other than a Taking as defined at Article 17, Tenant shall not be a displaced person, and therefore waives any and all claims for relocation benefits, assistances and/or payments under Government Code Sections 7260 et seq., 25 California Code of Regulations Sections 600 et seq., 42 U.S.C. 4601 et seq., 29 C.F.R. Sections 121 et seq. and 49 C.F.R Sections 24.1 et seq. (collectively the “Relocation Assistance Laws”). Any Relocation of the Premises pursuant to Article 24 of this Lease shall be governed by the terms of said article and not the Relocation Assistance Laws. Tenant further acknowledges and agrees that upon the expiration or earlier termination of this Lease for any reason, other than a Taking as hereinabove defined, no claim shall arise, nor shall Tenant assert any claim for loss of business goodwill (as that term is defined at CCP §1263.510) and no compensation for loss of business goodwill shall be paid by Landlord.

28.25 Counterparts. This Lease may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument.

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Landlord and Tenant have executed this Lease as of the day and year first above written.

LANDLORD:

City of Watsonville,
a municipal corporation
By: _____________________________
Tamara Vides
City Manager
Date: _____________________________
ATTEST:

By: _____________________________
City Clerk
Date: _____________________________
APPROVED AS TO FORM:

By: _____________________________
City Attorney
Date: _____________________________
TENANT:

Knowlton Construction
a Limited Liability Company
By: _____________________________
Name: Paul Moreno
Title: Owner
Date: _____________________________
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EXHIBIT A

PREMISES
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EXHIBIT A-1
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EXHIBIT B

COMMENCEMENT LETTER
Date: _____________________
Re: Lease dated as of July 1, 2026, by and between City of Watsonville, as Landlord, and ____________________, a ____________________, as Tenant, for ______ rentable square feet in the Airport____ located at ____________________, Watsonville, California.

Dear __________________:

In accordance with the terms and conditions of the above referenced Lease, Tenant accepts possession of the Premises and agrees:

1. The Commencement Date of the Lease is July 1, 2026;

2. The Expiration Date of the Lease is June 30, 2030.

Please acknowledge your acceptance of possession and agreement to the terms set forth above by signing all 3 counterparts of this Commencement Letter in the space provided and returning 2 fully executed counterparts to my attention.

Sincerely Agreed and Accepted:

Landlord: City of Watsonville
By: ___________________
Name: ___________________
Title:

Tenant: __________________
By: ___________________
Name: ___________________
Title: ___________________
[Exhibit Do not sign]
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EXHIBIT C

RULES AND REGULATIONS
Tenant shall faithfully observe and comply with the following Rules and Regulations.

Landlord shall not be responsible to Tenant for the non-performance of any of said Rules and Regulations by or otherwise with respect to the acts or omissions of any other tenants or occupants of the Airport. In the event of any conflicts between the Rules and Regulations and other provisions of this Lease, the latter shall control.

1. Landlord shall have the right to control and operate the public portions of the Airport, including the Parking Area/Tie-Down Area, and the public facilities, if any, in such manner as it deems best for the benefit of the tenants generally.

2. No advertisements, pictures or signs of any sort shall be displayed on or outside the Premises or Airport without the prior written consent of Landlord. This prohibition shall include any portable signs or vehicles placed within any parking lot or on streets adjacent thereto for the purpose of advertising or display. Landlord shall have the right to remove any such unapproved item without notice and at Tenant’s expense.

3. Storage of forklift propane tanks, whether interior or exterior, shall be in secured and protected storage and enclosure approved by the local fire department and, if exterior, shall be located in areas specifically designated by Landlord. Tenant shall protect electrical panels and Airport mechanical equipment from damage from forklift trucks.

4. Machinery, equipment and apparatus belonging to Tenant which causes noise or vibration that may be transmitted to the structure of the Airport to such a degree as to be objectionable to Landlord or other tenants or to cause harm to the Airport, shall be placed and maintained by Tenant, at Tenant’s expense, on vibration eliminators or other devices sufficient to eliminate the transmission of such noise and vibration. Tenant shall cease using any such machinery which causes objectionable noise and vibration which cannot be sufficiently mitigated.

5. All goods, including materials used to store goods, delivered to the Premises shall be immediately moved into the Premises and shall not be left in parking or exterior loading areas overnight.

6. Tractor trailers which must be unhooked or parked with dolly wheels beyond the concrete loading areas must uses steel plates or wood blocks of sufficient size to prevent damage to the asphalt paving surfaces. No parking or storage of such trailers will be permitted in any parking areas adjacent to the Premises or on streets adjacent thereto.

7. Tenant is responsible for the safe storage and removal of all pallets. Pallets shall be stored behind screen enclosures at locations approved by Landlord.

8. Tenant shall not store or permit the storage or placement of merchandise in or around the common areas surrounding the Premises. No displays or sales of merchandise shall be allowed in any parking or public areas.

9. Tenant is responsible for the storage and removal of all trash and refuse. All such trash and refuse shall be contained in suitable receptacles stored behind screen enclosures at locations approved by Landlord. Tenant may request Landlord to provide trash receptacles for the Premises, and Tenant shall pay as Additional Rent the standard rates established by Landlord for use of such trash receptacles.

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10. The toilet rooms, urinals, wash bowls and other apparatus shall not be used for any purpose other than that for which they were constructed and no foreign substances of any kind whatsoever shall be thrown therein. The expense of the repair of any breakage, stoppage or damage resulting from the violation of this rule shall be borne by the tenant who, or whose employees, agents, visitors or licensees shall have caused the same.

11. If Tenant shall use the Premises in a manner that creates noxious or objectionable fumes, vapors and/or odors, then Tenant shall provide proper ventilation equipment for the discharge of such fumes, vapors and odors so that they shall not enter into the air conditioning system or be discharged into other vents or flues of the Airport or annoy any of the other tenants of the Airport or adjacent property. The design, location and installation of such equipment shall be subject to the Landlord’s prior written approval.

12. The sashes, sash doors, skylights, windows and doors that reflect or admit light or air into the halls, passageways or other public places in the Airport shall not be covered or obstructed by Tenant.

13. Tenant shall not overload the floor of the Premises.

14. No awnings or other projections over or around the windows or entrances of the Premises shall be installed by any tenant without the prior written consent of Landlord.

15. Tenant shall not permit any animals, including, but not limited to, household pets (but excluding service animals, which are permitted), to be brought or kept in or about the Premises or Airport or any of the common areas.

17. Tenant hereby acknowledges that Landlord shall have no obligation to provide guard service or other security measures for the benefit of the Premises, Parking Area or Airport. Tenant hereby assumes all responsibility for the protection of Tenant and its agents, employees, contractors, invitees and guests, and the property thereof, from acts of third parties, including keeping doors locked and other means of entry to the Premises closed.

18. No auction, liquidation, fire sale, going out of business or bankruptcy sale shall be conducted in or about the Premises without the prior written consent of Landlord.

19. No tenant shall use or permit the use of any portion of the Premises for living quarters, sleeping apartments or lodging rooms.

20. Tenant, Tenant’s agents, employees, contractors, licensees, or visitors shall not park any vehicles in driveways, service entrances, or areas posted as no parking.

21. If the Premises are or become infested with vermin as a result of the use or any misuse or neglect of the Premises by Tenant, its agents, employees, contractors, visitors or licensees, Tenant shall forthwith, at Tenant’s expense, cause the same to be exterminated from time to time to the satisfaction of Landlord and shall employ such licensed exterminators as shall be approved in writing in advance by Landlord.

22. Tenant shall not use the name of the Airport for any purpose other than as the address of the business to be conducted by Tenant in the Premises, nor shall Tenant use any picture of the Airport in its advertising, stationary or in any other manner without the prior written permission of Landlord. Landlord expressly reserves the right at any time to change said name without in any manner being liable to Tenant therefor.

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23. Tenant, its employees and agents shall not loiter in or on the entrances, corridors, sidewalks, courts, halls, stairways, elevators, vestibules or other areas of the Airport for the purpose of smoking tobacco products or for any other purposes, nor in any way obstruct such areas, and shall use them only as a mean of ingress and egress from the Premises.

24. Landlord reserves the right to exclude from the Airport or the Parking Area/Tie-Down Area any person who, in the judgment of Landlord, is intoxicated or under the influence of liquor or drugs, or who shall in any manner do any act in violation of these Rules and Regulations.

25. Tenant shall provide Landlord with current copies of all keys, lock combinations, and, if applicable, alarm codes necessary to access the Premises and any associated secured areas, solely for purposes of responding to emergencies or for access upon at least forty-eight (48) hours’ advance notice. Tenant shall promptly update such keys, combinations, and codes upon any change, and in no event later than five (5) business days after such change.

26. Tenant shall provide Landlord with a written list of at least two (2) emergency contacts, including names, titles, telephone numbers, and email addresses, who are authorized to respond on Tenant’s behalf in the event of an emergency or access need. Tenant shall review and confirm the accuracy of the emergency contact list no less than annually and shall deliver an updated list to Landlord on or before each anniversary of the Commencement Date.

Tenant shall further notify Landlord in writing of any change to the information on the emergency contact list within thirty (30) days of such change.

27. Landlord reserves the right at any time to change or rescind any one or more of these Rules and Regulations, or to make such other and further reasonable Rules and Regulations as in Landlord’s judgment may from time to time be necessary for the management, safety, care and cleanliness of the Premises, common areas of the Airport and Airport, and for the preservation of good order therein, as well as for the convenience of other occupants and tenants thereof. Landlord may waive any one or more of these Rules and Regulations for the benefit of any particular tenant, but no such waiver by Landlord shall be construed as a waiver of such Rules and Regulations in favor of any other tenant, nor prevent Landlord from thereafter enforcing any such Rules and Regulations against any or all tenants of the Airport. Tenant shall be deemed to have read these Rules and Regulations and to have agreed to abide by them as a condition to its occupancy of the Premises.

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1 GUARANTY AGREEMENT
THIS GUARANTY AGREEMENT (“Guaranty”), is made effective as of July 1, 2026, by Paul Moreno (“Guarantor”) to and in favor of the City of Watsonville, California, a municipal corporation (“City”).

A. City and Knowlton Construction, a California Limited Liability Company (“Lessee”), are entering into a lease dated July 1, 2026 (“Lease”), for the premises located at 240 Airport Boulevard, part of the Watsonville Municipal Airport (“Airport”) in the City of Watsonville, California, as more particularly described in the Lease, on the terms and subject to the conditions therein.

B. It is a condition precedent to the approval and execution of the Lease by City that Guarantor shall have executed and delivered this Guaranty to City.

NOW, THEREFORE, in consideration of the foregoing, which are incorporated herein by reference, and the approval and execution of the Lease by City and as a material inducement to City to approve and execute said Lease, Guarantor hereby agrees as follows:

1. Guaranty. Guarantor hereby absolutely, irrevocably and unconditionally guarantees (as primary obligor and not merely as surety) to City, its successors and assigns, the following: (a) the full and prompt payment by Lessee of all rents and all other sums payable by Lessee at any time under the Lease, including, without limitation, all interest on past due obligations of Lessee, costs advanced by City, damages, and all expenses (including, without limitation, court costs and reasonable attorney fees) that may arise in consequence of Lessee’s default (“Payment Guaranty”); and (b) the full, faithful and prompt performance and satisfaction by Lessee of each and every one of the terms, conditions, duties, and covenants of Lessee under the Lease, including without limitation, all obligations of Lessee to indemnify and defend City (“Performance Guaranty” and together with the Payment Guaranty, collectively, “Obligations”).

City and Guarantor acknowledge and agree that: (i) the terms of the Lease may be modified by written agreement between City and Lessee; (ii) the Lease may be assigned by City or any assignee of City without consent of or notice to Guarantor; and (iii) this Guaranty shall guarantee the performance of the Obligations under the Lease as so modified or assigned.

2. Rights of City. City shall have the right, at City’s option, either before, during, or after pursuing any other right or remedy against Guarantor, to perform any and all of the Obligations by or through any agent of its selection, all as City, in its sole discretion, deems proper, and Guarantor shall indemnify, defend (with counsel acceptable to City) and hold City free and harmless from and against any and all loss, damage, cost, expense, injury, or liability City may suffer or incur in connection with the exercise of its rights under this Guaranty or the performance of the Obligations, except to the extent that such loss, damage, cost, expense, injury, or liability results from City’s gross negligence, fraud or willful misconduct.

3. Guaranty Absolute. Guarantor expressly agrees that until the Obligations are paid and performed in full, and each and every term, covenant and condition of this Guaranty and the Lease are fully performed, Guarantor shall not be released by or because of:
(a) any act, event, omission or failure to act that might otherwise discharge, reduce, limit or modify Guarantor’s obligations under this Guaranty; Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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2 (b) any waiver, extension, modification, forbearance, delay or other act, failure to act or omission of City, or its failure to proceed promptly or otherwise against Lessee, Guarantor and/or any security;
(c) any action, failure to act, omission or circumstance that might increase the likelihood that Guarantor may be called upon to perform under this Guaranty or that might affect the rights or remedies of Guarantor as against Lessee;
(d) any dealings occurring at any time between Lessee and City; (e) any lack of validity or enforceability of any provision of the Lease or any other agreement or instrument relating thereto; or
(f) any other circumstance that might otherwise constitute a defense available to, or a discharge of, the Lessee or Guarantor.

Guarantor hereby acknowledges that absent this Section 3, Guarantor might have a defense to the enforcement of this Guaranty as a result of one or more of the foregoing acts, failure to act, omissions, agreements, waivers or matters. Guarantor hereby expressly waives and surrenders any defense to any liability under this Guaranty based upon any of such acts, failure to act, omissions, agreements, waivers or matters. It is the express intent of Guarantor that Guarantor’s obligations under this Guaranty are and shall be absolute, unconditional and irrevocable.

4. Guarantor’s Waivers.
(a) Except as prohibited by applicable law, Guarantor waives any right to require City to (i) make any presentment, protest, demand, or notice of any kind, including notice of change of any terms of payment of the Obligations, default by Lessee or any other guarantor or surety, any action or nonaction taken by Lessee, City, or any other guarantor or surety of Lessee, or the creation of new or additional Obligations; (ii) proceed against any person or entity, including Lessee, before proceeding against Guarantor; (iii) proceed against any collateral for the Obligations, including Lessee’s collateral, before proceeding against Guarantor; (iv) apply any payments or proceeds received against the Obligations in any order; (v) disclose any information about the Obligations, Lessee, the collateral, or any other guarantor or surety, or about any action, nonaction or omission of City; or (vii) pursue any remedy or course of action in City’s power whatsoever.
(b) Guarantor also waives any and all rights or defenses arising by reason of (i) any disability or other defense of Lessee, any other guarantor or surety or any other person or entity; (ii) the cessation from any cause whatsoever, other than payment in full, of the Obligations; (iii) the application of proceeds of the Obligations by Lessee for purposes other than the purposes understood and intended by Guarantor and City; (iv) any act of omission or commission by City that directly or indirectly results in or contributes to the discharge of Lessee or any other guarantor or surety, or the Obligations, or the loss or release of any collateral by operation of law or otherwise; (v) any statute of limitations in any action under this Guaranty or on the Obligations; or (vi) any modification or change in terms of the Obligations, whatsoever, including without limitation, the renewal, extension, acceleration, or other change in the time payment of the Obligations is due and any change in the interest rate, and including any such modification or change in terms after revocation of this Guaranty on the Obligations incurred prior to such revocation.

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3 (c) Guarantor waives all rights of subrogation, reimbursement, indemnification, and contribution and any other rights and defenses that are or may become available to Guarantor by reason of California Civil Code Sections 2787 to 2856, inclusive. (d) Guarantor waives all rights and any defenses arising out of an election of remedies by City even though the election of remedies, such as a non-judicial foreclosure (if applicable) with respect to security for a guaranteed obligation, has destroyed Guarantor’s rights of subrogation and reimbursement against Lessee by operation of Section 580d of the California Code of Civil Procedure or otherwise.
(e) As a condition to payment or performance by Guarantor under this Guaranty, City shall not be required to, and Guarantor hereby waives any and all rights to require City to, prosecute or seek to enforce any remedies against Lessee or any other party liable to City on account of the Obligations or to require City to seek to enforce or resort to any remedies with respect to any security interests, liens or encumbrances granted in favor of City by Lessee or any other party on account of the Obligations. This waiver includes but is not limited to an express waiver of the rights created by California Civil Code Section 2845 and relevant case law. (f) Guarantor understands and agrees that the foregoing waivers are unconditional and irrevocable waivers of substantive rights and defenses to which Guarantor might otherwise be entitled under state and federal law. The rights and defenses waived include, without limitation, those provided by California law. Guarantor acknowledges that Guarantor has provided these waivers of rights and defenses with the intention that they be fully relied upon by City. Guarantor further understands and agrees that this Guaranty is a separate and independent contract between Guarantor and City, given for full and ample consideration, and is enforceable on its own terms. Until all of the Obligations are paid and satisfied in full, Guarantor waives any right to enforce any remedy Guarantor may have against Lessee or any other guarantor, surety, or other person, and further, Guarantor waives any right to participate in any collateral for the Obligations now or hereafter held by City.
(g) Guarantor warrants and agrees that each of the waivers set forth above is made with Guarantor’s full knowledge of its significance and consequences and that, under the circumstances, the waivers are reasonable and not contrary to public policy or law. If any such waiver is determined to be contrary to any applicable law or public policy, such waiver shall be effective only to the extent permitted by law or public policy.

5. No Right Of Subrogation. Until the Obligations are indefeasibly paid and satisfied in full, expire, are terminated and are not subject to any right of revocation or rescission, Guarantor shall have no right of subrogation against Lessee by reason of any payments or acts of performance by any guarantor, surety, or other person in compliance with the obligations of Guarantor hereunder. Guarantor hereby irrevocably waives all legal and equitable rights to recover from Lessee any sums paid by Guarantor under the terms of this Guaranty.

6. Subordination. Any rights of Guarantor, whether now existing or later arising, to receive payment on account of any indebtedness (including interest and related costs) owed to it by Lessee, or to withdraw capital invested by it in Lessee, or to receive distributions from Lessee, shall at all times be subordinate as to lien and time of payment and in all other respects to the full and prior repayment to City pursuant to the Obligations. Guarantor shall not be entitled to enforce or receive payment of any sums hereby subordinated until the Obligations have been paid and performed in full, and any such sums received in violation of this Guaranty shall be received by Guarantor in trust for City.

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4 7. Guarantor’s Representations and Warranties. Guarantor represents and warrants that:
(a) All financial statements and other financial information furnished or to be furnished to City are or will be true and correct and do or will fairly represent the financial condition of Guarantor (including all contingent liabilities);
(b) All financial statements were or will be prepared in accordance with generally accepted accounting principles, or such other accounting principles as may be acceptable to City at the time of their preparation, consistently applied; and (c) There has been no material adverse change in the business condition (financial or otherwise), operations or properties of Guarantor since the dates of the statements most recently furnished to City except as disclosed on the financial statements. (d) Guarantor is authorized to execute, deliver and perform under this Guaranty; (e) This Guaranty is a valid and binding obligation of Guarantor except as such enforceability may be limited by (a) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally, and (b) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law);
(f) No provision or obligation of Guarantor contained in this Guaranty violates any applicable law, regulation or ordinance, or any order or ruling of any court or governmental agency, and no such provision or obligation conflicts with, or constitutes a breach or default under, any agreement to which Guarantor is a party;
(g) There is no pending or threatened suit or proceeding affecting Guarantor before any court, governmental agency, or arbitrator which might affect the enforceability of this Guaranty, the business, operations, assets, or condition of Guarantor, or Guarantor’s ability to perform under this Guarantee; and
(h) No consent, approval or authorization of or notice to any person or entity is required in connection with Guarantor’s execution of and obligations under this Guaranty.

8. Events Of Default. City may declare Guarantor to be in default under this Guaranty upon the occurrence of any of the following events (“Events of Default”):
(a) Guarantor fails to perform any of its obligations under this Guaranty within ten (10) days of receipt of written demand from City; or
(b) Guarantor revokes this Guaranty or this Guaranty becomes ineffective for any reason; or
(c) any representation or warranty made or given by Guarantor to City proves to be false or misleading in any material respect when made; or (d) Guarantor becomes insolvent or the subject of any proceeding relating to bankruptcy, insolvency or relief of debtors (“Insolvency Proceeding”); or Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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5 (e) If Guarantor is an individual, Guarantor dies, and Lessee fails to, within sixty (60) days after such death provide City with a replacement guarantor or guarantors acceptable to City, in City’s sole discretion; or
(f) any material adverse change occurs in Guarantor’s business condition (financial or otherwise), operations, properties, or ability to perform under this Guaranty.

9. Additional and Independent Obligations. Guarantor’s obligations under this Guaranty are in addition to its obligations under any other existing or future guaranties, each of which shall remain in full force and effect until expressly modified or released in a writing signed by City. Guarantor’s obligations under this Guaranty are independent of those of Lessee under the Lease. Without prior notice to or demand upon either Guarantor or Lessee, City may bring a separate action, or commence a separate proceeding against Guarantor without first proceeding against Lessee, any other person or any security that City may hold, and without pursuing any other remedy. Guarantor agrees that any releases which may be given by City to Lessee, or any other guarantor, surety or endorser, shall not release Guarantor from this Guaranty.

10. No Waiver; Consents; Cumulative Remedies. Each waiver by City must be in writing, and no waiver shall be construed as a continuing waiver. No waiver shall be implied from City’s delay in exercising or failure to exercise any right or remedy against Lessee, Guarantor, any other guarantor or surety or any security. Consent by City to any act or omission by Lessee or Guarantor shall not be construed as a consent to any other or subsequent act or omission, or as a waiver of the requirement for City’s consent to be obtained in any future or other instance.

All remedies of City against Lessee and Guarantor are cumulative.

11. No Release. Guarantor shall not be released from its obligations under this Guaranty except by a writing signed by City.

12. Heirs, Successors and Assigns. The terms of this Guaranty shall bind and benefit the heirs, legal representatives, successors and assigns of City and Guarantor; provided, however, Guarantor may not assign this Guaranty, or assign or delegate any of its rights or obligations under this Guaranty, without the prior written consent of City in each instance, which City may give or withhold in its sole discretion.

13. Notices. Except as otherwise specified in this Guaranty, all notices to be sent pursuant to this Guaranty shall be made in writing and sent to the parties at their respective addresses specified below or to such other address as a party may designate by written notice delivered to the other parties in accordance with this Section. All such notices shall be sent by:
(i) personal delivery, in which case notice is effective upon delivery; (ii) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered on receipt if delivery is confirmed by a return receipt; or (iii) nationally recognized overnight courier, with charges prepaid or charged to the sender’s account, in which case notice is effective on delivery if delivery is confirmed by the delivery service; provided that if delivery under clauses (i) or (iii) above is refused, then notice shall be deemed delivered on presentation.

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6 CITY: City of Watsonville
275 Main Street, Suite 400
Watsonville, CA 95076
Attention: Airport Manager
GUARANTOR: __________________
__________________
Attention: Paul Moreno

14. Rules of Construction. In this Guaranty, the word “Lessee” includes both the named Lessee and any other person who at any time assumes or otherwise becomes primarily liable for all or any part of the obligations of the named Lessee on the Lease. The word “person” includes any individual, company, trust or other legal entity of any kind. When the context and construction are required, all words used in the singular shall be deemed to have been used in the plural and vice versa. No listing of specific instances, items or matters in any way limits the scope or generality of any language of this Guaranty. All headings appearing in this Guaranty are for convenience only and shall be disregarded in construing this Guaranty.

15. Governing Law; Venue. This Guaranty shall be deemed to be a contract under, and together with any disputes or controversies arising out of or relating to this Guaranty, shall be governed by, and construed and interpreted in accordance with, the laws of the State of California and applicable federal law, without regard to choice of law rules. The parties’ consent to the jurisdiction and venue of any federal or state court in Santa Cruz County, California, and consent to service of process by any means authorized by California or federal law.

16. Costs And Expenses. If any lawsuit, reference or arbitration is commenced that arises out of, or that relates to this Guaranty or the Lease, the prevailing party shall be entitled to recover from each other party such sums as the court, referee or arbitrator may adjudge to be reasonable attorneys’ fees (including allocated costs for services of in-house counsel) in the action or proceeding, in addition to costs and expenses otherwise allowed by law. In all other situations, including any Insolvency Proceeding, Guarantor agrees to pay all of City’s costs and expenses, including attorneys’ fees (including allocated costs for services of City’s in-house counsel) that may be incurred in any effort to collect or enforce the Lease or any term of this Guaranty.

17. Consideration. Guarantor acknowledges that it expects to benefit from City’s approval and execution of the Lease because of its relationship to Lessee, and that it is executing this Guaranty in consideration of that anticipated benefit.

18. Continuing Guaranty. Guarantor’s obligations under this Guaranty shall be binding upon Guarantor, its heirs, legal representatives, successors and assigns, and shall ensure the benefit of and be enforceable by City and its successors, transferees, and assigns. All of the indebtedness, liabilities and obligations of Lessee to City shall be conclusively presumed to have been created in reliance on this Guaranty.

19. Modifications. This Guaranty may not be modified except in a writing signed by both City and Guarantor. No course of prior dealing, usage of trade, parole or extrinsic evidence of any nature shall be used to supplement, modify or vary any of the terms hereof.

20. Miscellaneous. The illegality or unenforceability of one or more provisions of this Guaranty shall not affect any other provision. This Guaranty may be executed in counterparts, Docusign Envelope ID: E624F059-050B-88AF-8144-0D14D6CBCC62

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7 and all counterparts shall constitute but one and the same document. Time is of the essence in the performance of this Guaranty by Guarantor.

21. Counsel. Guarantor acknowledges that Guarantor has had adequate opportunity to carefully read this Guaranty and to consult with an attorney of Guarantor’s choice prior to signing it.
[SIGNATURES ON FOLLOWING PAGE]
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8 IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be duly executed and delivered as of the date first above written.

GUARANTOR:

Paul Moreno
By: ___________________________________
Paul Moreno, Personal Guarantor
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1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, July 7, 2026
TO: CITY COUNCIL
WRITTEN BY: AIRPORT DIRECTOR WILLIAMS
RECOMMENDED BY: AIRPORT DIRECTOR WILLIAMS
APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: RESOLUTION APPROVING A THREE-YEAR AIRPORT GROUND LEASE WITH DAVID G. PETTIGREW, SOLE PROPRIETOR DBA DIAMOND D
COMPANY FOR PROPERTY LOCATED AT 35 LANDEN LANE
RECOMMENDATION:

It is recommended that the City Council approve a three (3) year lease with David G. Pettigrew, a sole proprietor dba Diamond D Company, for the use of City owned property consisting of 1.88 acres located at 35 Landen Lane.

BACKGROUND:

Diamond D Company is a flooring, masonry/concrete company that provides services and construction or fabrication for decorative concrete, concrete countertops, concrete engraving, demolition, pool decks, concrete staining, concrete driveways, colored concrete, micro-top and concrete interlocking pavers.

Diamond D Company, based in Capitola, California, has been a Municipal Airport tenant for over twenty years. David Pettigrew’s current tenancy has been based on a month-to-month ground lease of 1.88 acres (81,909 square feet) for a maintenance yard. The ground lease consists of a fenced in area for parking, support vehicles and associated equipment.

DISCUSSION:

To bring Diamond D into compliance with all non-aeronautical leaseholds approved by the City Council Mr. Pettigrew has agreed to a three-year ground lease.

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2 CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

STRATEGIC PLAN:

Infrastructure & Environment
FINANCIAL IMPACT:

The ground lease would provide revenue of $2,700 per month to the Airport Enterprise Fund.

ALTERNATIVE ACTION:

Alternatives include not approving the ground lease.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

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1 Reso No. ______ (CM)
Meeting Date: 070726 SWZ ______ TV ______ Airport ______ RESOLUTION NO. (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

APPROVING A THREE-YEAR GROUND LEASE AGREEMENT BETWEEN
THE CITY OF WATSONVILLE AND DAVID G. PETTIGREW, A SOLE

PROPRIETOR, DBA DIAMOND D COMPANY, FOR THE USE OF CITY
OWNED PROPERTY LOCATED AT 35 LANDEN LANE 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 consisting of 1.88 acres (81,909 square feet) located at 35 Landen Lane, between the City of Watsonville and Diamond D Company, a California sole proprietorship, a copy of which Lease is attached hereto and incorporated herein by this reference, is hereby approved.

3. That the Guaranty Agreement for City owned property consisting of 1.88 acres (81,909 square feet) located at 35 Landen Lane, between the City of Watsonville and Diamond D Company, a California sole proprietorship, a copy of which Agreement is attached hereto and incorporated herein by this reference, is hereby approved.

4. That the City Manager is hereby authorized and directed to execute such Lease and Guaranty 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. *******************************

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1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, July 7, 2026
TO: CITY COUNCIL
WRITTEN BY: HR ANALYST RODRIGUEZ-GUTIERREZ
RECOMMENDED BY: DEPUTY CITY MANAGER MANNING
APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: RESOLUTION APPROVING REVISED CITY CLERK JOB CLASSIFICATIONS

AND JOB DESCRIPTIONS AT EXISTING SALARY RANGE
RECOMMENDATION:

Adopt resolutions approving revised job classifications and job descriptions at existing salary ranges for the following positions:
 Assistant City Clerk at salary range of $41.88- $56.13 per hour or $7,259.94- $9,728.98 per month  Deputy City Clerk at salary range of $31.54- $42.27 per hour or $5,467.17 - $7,326.56 per month The salaries are subject to their respective Memorandum of Understanding contract increases in the first full pay period of July 2026.

BACKGROUND:

The City recently completed a City-wide class and compensation study. The study began with briefing sessions at the beginning of the study to explain the study process, it was followed by the distribution of job analysis questionnaires and supplemental interviews with those interested to confirm the job duties and tasks performed.

The job analysis questionnaires provided an opportunity for employees to fully describe the duties and responsibilities of their position and provide information necessary such as the knowledge, skills, abilities and physical requirements necessary to perform the work, as well as supervisor and managerial responsibilities. Each questionnaire was reviewed by the employee’s supervisor to ensure completeness and accuracy.

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2 The consultant then reviewed the existing job descriptions and proposed updated language to modernize and standardize certain requirements. The updated job descriptions incorporated comments and suggestions from employees, managers along with expert recommended changes from the research of surveying agencies that the consultant used. Surveying agencies included City of Gilroy, City of Santa Cruz, City of Salinas, City of Seaside, City of Hollister, City of Morgan Hill, County of Santa Cruz and supplemental special districts for some surveying jobs. Furthermore, the respective unions had the opportunity to comment and are in agreement with the proposed changes. These were considered at the June 25, 2026 Personnel Commission meeting and it recommends the proposed changes to the City Council. There are no proposed changes to the salaries.

DISCUSSION:

Highlights of the proposed changes to the specific job descriptions are outlined below.

1. Assistant City Clerk (revised)
Updated to include recommended language updates from the class and compensation study consultant review to provide consistency across the City. Updates included re-wording of job duties to enhance clarity, key competencies, and responsibilities. No change to compensation is recommended at this time.

2. Deputy City Clerk (revised)
Updated to include recommended language updates from the class and compensation study consultant review to provide consistency across the City. Updates included re-wording of job duties to enhance clarity, key competencies, and responsibilities. No change to compensation is recommended at this time.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

The action being considered does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is an administrative activity that will not result in a potentially significant impact to the environment.

STRATEGIC PLAN:

This aligns with strategic plan number 7, efficient and high-performing government, by attracting qualified candidates and retaining great employees.
7-Efficient and High-Performing Government
FINANCIAL IMPACT:

There are no proposed fiscal changes.

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3 ALTERNATIVE ACTION:

The City Council may elect not to approve the revised job classifications and descriptions.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

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Reso No. (CM)
Reference: Reso No. 104-21 (CM) (Rescind)
Meeting Date: 070726 SWZ ______ TV ______ HR ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING AND AUTHORIZING THE REVISED JOB

CLASSIFICATION AND JOB DESCRIPTION FOR ASSISTANT CITY

CLERK (MANAGEMENT) AT THE ESTABLISHED SALARY RANGE OF
$41.88-$56.13 PER HOUR OR $7,259.94-$9,728.98 PER MONTH WHEREAS, on June 25, 2026, the Personnel Commission of the City of Watsonville reviewed and recommended to the City Council the revised job classification and job description of Assistant City Clerk; and
WHEREAS, the City Manager has submitted her report and recommendation to the City Council to approve and authorize the revised job classification and job description of Assistant City Clerk, a copy of which is attached hereto and incorporated herein by this reference.

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 and authorizing the revised job classification and job description for Assistant City Clerk 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.

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Reso No. (CM)
Reference: Reso No. 104-21 (CM) (Rescind)
Meeting Date: 070726
2 2. That the job classification and job description of Assistant City Clerk (Management), attached hereto, is hereby approved and authorized at the established salary range of $41.88-$56.13 per hour or $7,259.94-$9.728.98 per month. **********************************

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1 | Assistant City Clerk Job Description
City of Watsonville
Job Description
JOB TITLE: Assistant City Clerk DATE APPROVED:

DEPARTMENT: City Clerk SUPERSEDES: April 27, 2001
REPORTS TO: City Clerk
SUPERVISION: Over assigned administrative support staff EMPLOYEE UNIT: Management
FLSA : Exempt
JOB SUMMARY:

Under direction, assists in planning and organizing the daily operations of the City Clerk's office; serves as the City Clerk in his/her absence; manages elections; manages records management software and records requests; reviews contracts and accepts and reviews claims; provides administrative support to the Council and provides services as a member of the department’s management team; and performs other related duties as required.

DISTINGUISHING CHARACTERISTICS:

The Assistant City Clerk has considerable latitude, with the primary focus on day-to-day management and administration of the operations. It is distinguished from the City Clerk in that the City Clerk has overall responsibility for the department. The Assistant City Clerk is further distinguished from the Deputy City Clerk, in that the Deputy City Clerk is primarily responsible for clerical, technical, and administrative support services.

EXAMPLES OF ESSENTIAL DUTIES:

The following duties are performed personally, in cooperation with the City Manager, and/or in coordination with other City employees, operating partners, community groups, and other public and private organizations.

Additional duties may be assigned.
• Serves as Assistant City Clerk to the City Council; attends and opens regular and special city council meetings as assigned; assists in posting, mailing, and publication of legally required notices of public hearings including City Council, committees, and special agencies and authorities’ meetings in accordance with the Brown Act, City Charter, and Municipal Code. • Provides administrative support to the City Attorney’s Office. • Prepares and distributes agendas, materials, minutes, and records of meetings in proper legislative terminology; distributes information as requested; catalogs and files City records; codifies and maintains the City's Municipal Code.
• Manages Municipal elections, both regular and special; assists in managing the receipt and processing of petitions relating to initiatives, recalls, and referendums. • Assists with Council candidates nomination process.
• Acts as filing officer for local campaigns and conflict of interest statements; and assists in administering the provisions of the Political Reform Act.

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2 | Assistant City Clerk Job Description
• Responds to citizen inquiries and resolves difficult and sensitive complaints; provides notary service to City documents, City staff and the general public; prepares City Council reports, memoranda, correspondence, and other informational materials.
• Oversees City Boards and Commissions; conducts recruitment, notice advertisements, and process applications.
• Selects, trains, motivates, and evaluates City Clerk’s Office personnel; provides or coordinates staff training and works with employees to correct deficiencies. • Develops and administers the office budget; assists in directing the forecast of additional funds needed for staffing, equipment, materials and supplies; monitors and approves expenditures; implements mid-year adjustments.
• Provides highly responsible administrative and technical support to the City Council. • Manages all City records requests covered under the Public Records Act. • Composes ordinances, resolutions, and prepares clear reports and correspondence. • Receives and manages claims and lawsuits filed against the City. • Represents the department in interdepartmental and interagency projects in the absence of the City Attorney and/or City Clerk or as directed.
• Monitors, analyzes, and reports on the effects of legislation and judicial actions on assigned program areas of responsibility.
• Analyzes issues and prepares reports for submission to the City Council. • Performs legal and/or general research utilizing online resources, document management systems, and print materials; researches may include contacting other external agencies and organizations; prepares written correspondence.
• Reviews data and documents, and identifies relevant, confidential, sensitive, privileged, and/or protected information; may redact appropriate data and maintains document logs. • Maintains Records Retention Schedule and assists departments with questions pertaining to records destruction.
• Provides complex research and retrieval of records and documents for the public and City departments.
• Interprets and applies City and department policies, procedures, rules and regulations; explains various rules and regulations relating to City Clerk operations. • Provides training to employees regarding various functions of the City Clerk's operations including records retention, agenda process, City legislative procedures, contracts processing, and other areas. • Manages City Clerk’s Office technology.
• Answers questions and provides information to the public; investigates complaints and recommends corrective action as necessary to resolve complaints.
• Responds to the more difficult complaints and requests for information from the public and City staff and researches requested information and determines appropriate resolutions. • Acts on behalf of the City Clerk and manages the operation of the City Clerk’s Office in their absence. • Performs related duties as required.

EMPLOYMENT STANDARDS
Knowledge of:
• Principles and practices of government City Clerk functions and requirements. • Applicable federal, state and municipal codes, laws and regulations related to City Clerk duties and public meetings.

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3 | Assistant City Clerk Job Description
• Election laws and procedures and political reform requirements. • Organization and management practices as applied to the analysis and evaluation of programs, policies and operational needs.
• Principles and practices of leadership, motivation, team building and conflict resolution. • Pertinent local, state and federal rules, regulations and laws. • Modem methods of records management, including legal requirement for recording, retention, and disclosure.
• Principles and techniques budgeting procedures and techniques. • Principles and practices of risk management in particular contract/leases administration. • Principles and practices of official record keeping and management. • Office procedures, methods, and equipment including computers and applicable software applications such as word processing, spreadsheets, and databases..
• Principles and practices of supervision, training and personnel management. • Principles and practices of work safety.
• Business English, spelling, and arithmetic.
• Principles of business letter writing and report preparation. • Methods and techniques of public relations.

Ability to:
• Organize work, set priorities, and meet deadlines related to scheduling, and coordinating City Clerk operational activities; and to act as the City Clerk in his or her absence. • Analyze work papers, reports, and projects; know laws, regulations and codes; problem solve department related issues and explain and interpret policies and procedures; review municipal codes; interpret and evaluate staff reports; know laws, regulations and codes; problem solve department related issues; remember various rules and procedures; and explain and interpret policy. • Learn the City's Municipal Code.
• Assist in the preparation, conduct and certification of municipal elections. • Participate in managing an efficient records management system, including staying current with computer and electronic methods of indexing, classifying, storing, and retrieving documents and records.
• Interpret and apply municipal laws and procedures including State law regarding, the Public Records Act, Brown Act, Political Reform Act, the Government Code, and Election Code. • Analyze and interpret complex legal documents and contracts and administrative procedures and regulations.
• Assist in the development and monitoring of the City Clerk budget. • Demonstrate a civic entrepreneurial spirit by generating new, innovative ideas and development of better methods to accomplish tasks and complete projects. • Foster an environment that embraces diversity, integrity, trust and respect; work with various cultural and ethnic groups in a tactful and effective manner.
• Exercise sound, independent judgment within general policy guidelines. • Preserve confidentiality of sensitive material routinely encountered as part of work assignments. • Operate office equipment including computers and supporting word processing and spreadsheet applications.
• Communicate clearly and concisely, both orally and in writing. • Establish and maintain effective working relationships with those contacted in the course of work.

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4 | Assistant City Clerk Job Description
EDUCATION/TRAINING AND EXPERIENCE:

Any combination of training and experience which provides the required knowledge and abilities is qualifying.

A typical way to obtain the knowledge and abilities is:

Education/Training:

Equivalent to a Bachelor's degree from an accredited college or university with major course work in public administration, business administration, records management or a related field.

Acceptable Substitution
Seven years of extensive relevant experience working in a City Clerks’ Office, possession of Certified Municipal Clerk designation from the International Institute of Municipal Clerk’s (IIMC), or completion of the Technical Training for Clerks (TTC) may be substituted for college degree.

Experience:

Four years of progressively responsible experience performing responsible and complex administrative office work using state of the art technology in a local government agency and administrative and supervisory or project management, preferably in a City Clerk's Office.

LICENSE & CERTIFICATION:
• Possession of, or ability to obtain, a valid California Class C driver's license and a safe driving record. • Possession of, or ability to obtain, Certified Municipal Clerk designation from the International Institute of Municipal Clerk’s (IIMC) or completion of the Technical Training for Clerks (TTC).

Other Requirements:
• Bilingual English/Spanish oral skills is highly preferred.

PHYSICAL DEMANDS AND WORKING ENVIRONMENT
The conditions herein are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential job functions.
• Environment: Work is performed primarily in a standard office setting; frequent contact with the public; incumbents may be required to work extended hours including evenings and nights. • Physical: Primary functions require sufficient physical ability and mobility to work in an office setting; to stand or sit for prolonged periods of time; to occasionally stoop, bend, kneel, crouch, reach, and twist; to lift, carry, push, and/or pull light to moderate amounts of weight; to operate office equipment requiring repetitive hand movement and fine coordination including use of a computer keyboard; and to verbally communicate to exchange information. • Vision: See in the normal visual range with or without correction. • Hearing: Hear in the normal audio range with or without correction.

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Reso No. (CM)
Reference: Reso No. 113-14(CM) (Rescind)
Meeting Date: 070726 SWZ ______ TV ______ HR ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING AND AUTHORIZING THE REVISED JOB

CLASSIFICATION AND JOB DESCRIPTION FOR DEPUTY CITY CLERK (CONFIDENTIAL) AT THE ESTABLISHED SALARY RANGE OF $31.54- $42.27 PER HOUR OR $5,467.17-$7,326.56 PER MONTH
WHEREAS, on June 25, 2026, the Personnel Commission of the City of Watsonville reviewed and recommended to the City Council the revised job classification and job description of Deputy City Clerk; and
WHEREAS, the City Manager has submitted her report and recommendation to the City Council to approve and authorize the revised job classification and job description of Deputy City Clerk, a copy of which is attached hereto and incorporated herein by this reference.

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 and authorizing the revised job classification and job description of Deputy City Clerk 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.

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Reso No. (CM)
Reference: Reso No. 113-14 (CM) (Rescind)
Meeting Date: 070726
2 2. That the job classification and job description of Deputy City Clerk (Confidential), attached hereto, is hereby approved and authorized at the established salary range of $31.54-$42.27 per hour or $5,467.17-$7,326.56 per month. **********************************

Page 581 of 760 ends

1 | Deputy City Clerk Job Description
City of Watsonville
Job Description
JOB TITLE: Deputy City Clerk DATE APPROVED:

DEPARTMENT: City Clerk SUPERSEDES: August 26, 2014
REPORTS TO: City Clerk or designee
SUPERVISION: None
EMPLOYEE UNIT: Confidential
FLSA : Non-Exempt
JOB SUMMARY:

Under general direction, operates in the City Clerk’s Office and provides varied and responsible advanced office and technical support; assists the City Clerk by providing and coordinating clerical, technical, and administrative support services essential to the overall function of the City Council/Boards; develops agendas and prepares public notices, researches and compiles pertinent data, transcribes minutes, scans and indexes files and contracts, and files all official documents as prescribed by law; assists in conducting municipal elections; and performs other related duties as required.

DISTINGUISHING CHARACTERISTICS:

This classification provides advanced administrative assistance to the City Clerk in planning and organizing of administrative and operational services for the City Clerk’s Office. Other responsibilities include attendance at City Council and Board meetings, preparation of City Council/Board minutes, and assisting in the conduct of elections.

EXAMPLES OF ESSENTIAL DUTIES:

Additional duties may be assigned.
• Attends Council/Board meetings; takes and records minutes of proceedings; prepares drafts minutes. • Processes agenda reports and documents for Council/Board meetings; posts and distributes agenda and other official documents.
• Prepares electronic agenda packet; links and bookmarks documents for uploading to website and Council/Board electronic devices.
• Maintains the Municipal Code, ensuring that ordinances are codified and indexed properly according to legal requirements.
• Maintains City Clerk’s webpage.
• Performs a variety of administrative duties including responding to letters and general correspondence of a routine nature; enters and retrieves data in computer system; tracks and monitors files and databases; opens, routes and distributes mail; prepares public notices for required publications and mailings; composes and prepares proclamations; maintains City phone lists;

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2 | Deputy City Clerk Job Description
processes invoices for payments; maintains and monitors agreements, insurance certificates and deeds.
• Performs special projects or research assignments at the request of public and staff (Public Records Act Requests).
• Responds to inquiries ranging from procedural questions to substantive matters pertaining to Board/Council/Committee discussions, actions, concerns, and requests. • Completes Council/Board follow up actions including preparing, tracking and maintaining resolutions and ordinances.
• Accepts legal documents on behalf of the City.
• Participates in planning and setting up for elections. • Manages Audio/Visual System in the City Council Chambers; coordinates technicians in Council Chambers and interpreters for Council/Board/Commission meetings. • Organizes and Administers Statement of Economic Interest and Campaign Statements for elected and appointed City officials and employees.
• Submits required reports of Public Works projects to Department of Industrial Relations. • Records documents with County Recorder.
• Orients new employees in the administrative offices regarding office protocol, machines, software, and staff introduction; trains new staff on policies and procedures, use of equipment and variety of software.
• Acts on behalf of the City Clerk and manages the operation of the City Clerk’s Office as assigned. • Performs related duties as required.

EMPLOYMENT STANDARDS
Knowledge of:
• Municipal organization and relationships within the municipal government. • Basic research and survey techniques
• Basic methods for gathering, compiling, analyzing and presenting information. • Office procedures, methods, and equipment including computers and applicable software applications such as word processing, spreadsheets, and databases.
• Legal requirements, procedures, and policies of the office of the City Clerk. • Legal documents and contracts
• Modern principles and practices of office management, recordkeeping, and central filing systems. • Election codes and administration, including conflict of interest requirements. • Laws and procedures affecting public access to information. • Website management and maintenance.

Ability to:
• Perform complex clerical and administrative duties and make independent decisions in support of the City Clerk’s office.
• Work quickly and accurately on multiple tasks.
• Understand and carry out oral and written directions
• Maintain confidentiality
• Establish and maintain efficient recordkeeping/filing systems. • Plan, organize, coordinate, and prioritize assigned tasks to meet established timelines.

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3 | Deputy City Clerk Job Description
• Analyze documents, data, and situations and take appropriate action without immediate supervision. • Operate office equipment including computers and supporting word processing and spreadsheet applications.
• Effectively and tactfully communicate in both oral and written forms. • Attend and accurately record the minutes of City Council/Board meetings • Ensure the proper notification and public dissemination of information concerning official City actions. • Supervise, train, and evaluate the work of assigned staff. • Communicate clearly and concisely, both orally and in writing. • Establish and maintain effective working relationships with those contacted in the course of work.

EDUCATION/TRAINING AND EXPERIENCE:

Any combination of training and experience which provides the required knowledge and abilities is qualifying.

A typical way to obtain the knowledge and abilities is:

Education/Training:

Equivalent to the completion of the twelfth grade.

Experience:

Four (4) years of office administrative experience, preferably of which two (2) years involved taking and transcribing minutes and following through on actions of Council/Board meetings and hearings within a City or County clerk’s office.

LICENSE & CERTIFICATION:
• Possession of a valid California Class C driver’s license and a safe driving record. • Possession of, or ability to obtain, a Notary Public License within six months of hire.

Other Requirements:
• Bilingual English/Spanish oral skills is highly preferred.

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CLASSIFICATIONS AND JOB DESCRIPTIONS AT EXISTING SALARY RANGE RECOMMENDATION:

Adopt resolutions approving revised job classifications and descriptions at existing salary ranges for the following positions:
 Human Resources Analyst at salary range of $38.60-$51.73 per hour or $6,691.32-$8,967.00 per month
 Senior Human Resources Analyst at salary range of $42.18-$56.52 per hour or $7,310.42- $9,796.71 per month
 Human Resources Technician (former title Personnel Technician) at salary range of $29.53-$39.58 per hour or $5,118.79-$6,859.69 per month
The salaries are subject to increases under their respective Memorandum of Understanding contracts in the first full pay period of July 2026, as approved by Council.

BACKGROUND:

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2 responsibilities. Each questionnaire was reviewed by the employee’s supervisor to ensure completeness and accuracy.

The consultant then reviewed the existing job descriptions and proposed updated language to modernize and standardize certain requirements. The updated job descriptions incorporated comments and suggestions from employees, managers along with expert recommended changes from the research of surveying agencies that the consultant used. Surveying agencies included City of Gilroy, City of Santa Cruz, City of Salinas, City of Seaside, City of Hollister, City of Morgan Hill, County of Santa Cruz and supplemental special districts for some surveying jobs. Furthermore, the respective unions had the opportunity to comment and are in agreement with the proposed changes. These were considered at the June 25, 2026, Personnel Commission meeting and it recommends the proposed changes to the City Council. There are no proposed changes to the salaries.

DISCUSSION:

Highlights of the proposed changes to the specific job descriptions are outlined below.

1. Human Resources Analyst/Senior Human Resources Analyst (revised) Updated to include recommended language updates from the class and compensation study consultant review to provide consistency across the City. Updates included re-wording of job duties to enhance clarity, key competencies, and responsibilities. No change to compensation is recommended at this time.

2. Human Resources Technician (revised)
Updated to include recommended language updates from the class and compensation study consultant review to provide consistency across the City. Updates included re-wording of job duties to enhance clarity, key competencies, and responsibilities. Some additional language outlined below was added due to current staff already performing those job functions. No change to compensation is recommended at this time.

Job Title:
 Change from “Personnel Technician” to “Human Resources Technician” Language added under “essential duties” includes:
 Performs a variety of duties related to City-wide trainings; develops, plans, coordinates, and conducts training classes for City employees; researches and recommends new training; develops and designs training schedule/calendar; selects and schedules instructors; gathers and prints materials and maintains training records.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

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3 STRATEGIC PLAN:

There are no proposed fiscal changes.

ALTERNATIVE ACTION:

The City Council may elect not to approve the revised job classifications and descriptions.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

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Reso No. (CM)
Reference: Reso No. 193-16(CM) (Rescind)
Meeting Date: 070726 SWZ ______ TV ______ HR ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING AND AUTHORIZING THE REVISED JOB

CLASSIFICATION AND JOB DESCRIPTION FOR HUMAN RESOURCES

ANALYST (MANAGEMENT) AT THE ESTABLISHED SALARY RANGE
OF $38.60-$51.73 PER HOUR OR $6,691.32-$8,967.01 PER MONTH WHEREAS, on June 25, 2026, the Personnel Commission of the City of Watsonville reviewed and recommended to the City Council the revised job classification and job description of Human Resources Analyst; and
WHEREAS, the City Manager has submitted her report and recommendation to the City Council to approve and authorize the revised job classification and job description of Human Resources Analyst, a copy of which is attached hereto and incorporated herein by this reference.

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 and authorizing the revised job classification and job description of Human Resources Analyst 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.

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Reso No. (CM)
Reference: Reso No. 193-16 (CM) (Rescind)
Meeting Date: 070726
2 2. That the revised job classification and job description of Human Resources Analyst (Management), attached hereto, is hereby approved and authorized at the established salary range of $38.60-$51.73 per hour or $6,691.32-$8,967.01 per month. **********************************

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1 | Human Resources Analyst/Senior Human Resources Analyst Job Description
City of Watsonville
Job Description
JOB TITLE: Human Resources Analyst/Senior Human Resources Analyst DATE APPROVED:

DEPARTMENT: Human Resources SUPERSEDES: December 13, 2016 REPORTS TO: Principal Human Resources Analyst or designee SUPERVISION: May oversee technical staff
EMPLOYEE UNIT: Management
FLSA : Exempt
JOB SUMMARY:

Under general direction, performs professional level human resources duties in the administration of recruitment and examination, classification and compensation, employee benefits, employee/labor relations, employee training and development, workers compensation, benefits administration and related human resources functions; implements and administers assigned program responsibilities; conducts research, analysis, and preparation of reports; and performs other related duties as required.

DISTINGUISHING CHARACTERISTICS:

Human Resources Analyst
This is the journey level professional class in the Human Resources Analyst series. Employees work in one or more of the following functions: recruitment and selection, classification and compensation, salary administration, employee relations and departmental human resources programs. Employees at this level receive only occasional instruction or assistance as new or unusual situations arise, and are fully aware of the operating procedures and policies of the work unit. Human Resources Analysts receive general supervision from a higher level professional or management position and may provide direction or instruction to lower level technical and clerical personnel.

Senior Human Resources Analyst
This is the advanced journey/lead class in the Human Resources Analyst series. Incumbents are assigned a variety of human resources assignments without detailed instructions or guidance. Employees within this class are distinguished from the Human Resources Analyst by providing lead direction and training to lower level human resources staff, and personally performing the more complex and/or specialized assignments requiring thorough analysis, extensive research, unusual or original solutions, and interdepartmental coordination.

Further, this class is distinguished from the Principal Human Resources Analyst class in that the latter is the supervisory level within the series. The Human Resources Analyst series differs from other analytical classes, such as the Administrative Analysts by its emphasis on human resources administration rather than general administrative responsibilities

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2 | Human Resources Analyst/Senior Human Resources Analyst Job Description
EXAMPLES OF ESSENTIAL DUTIES:

Additional duties may be assigned.
• Performs a variety of professional duties in support of the City’s human resource functions including recruitment and examination, classification and compensation, employee benefits, employee/labor relations, employee training and development, workers compensation, benefits administration and related human resources functions.
• Develops, plans, coordinates, and administers the recruitment and examination process; assists in the development of practical tests; orders commercially developed exams; coordinates, schedules, and administers examinations; evaluates and scores examination results; determines pass points; notifies departments and applicants; prepares and certifies eligibility lists. • Oversees the preparation of job announcements, employment advertising, and other recruitment materials.
• Prepares and maintains a variety of written and statistical reports, correspondence, records, and communications; analyzes data; establishes and maintains the city personnel files system. • Prepares and coordinates proper completion of documents related to employment status including hiring, salary actions, and separation.
• Works with the public and employees to explain City personnel policies, practices, and regulations. • Manages, coordinates, and provides benefit administration and oversight; assists with the administration of City employee benefit programs including life, health and disability insurance and deferred compensation programs; counsel and assist employees regarding benefit programs; submit forms to carrier as needed.
• Assists in preparation and monitoring of the departmental budget. • Performs a variety of administrative and support duties for the Human Resources Department and related administrative offices; gathers, compiles, and analyzes data pertaining to personnel program, policies, and prepares related reports; researches and provides information regarding human resources policies, practices, procedures, regulations, and terms of labor contracts to City staff, other agencies, and the public.
• Conducts new employee orientations.
• Oversees the administration of the workers compensation program; reviews workers compensation claims and coordinates case management and return to work with third party administrator and medical providers.
• Assists in conducting salary, benefit, and classification surveys. • Provides direction and training to City employees, supervisors, and managers in workers compensation and other human resources topics
• Operates a variety of office equipment including computers and software applications to support and conduct assignments; inputs and retrieves data; implements and tracks personnel related changes in software programs.
• Represents the Human Resources Department in interdepartmental, interagency, and public meetings; serves on committees and task forces as assigned. • Performs related duties as required.

Senior Human Resources Analyst (in addition to the above duties) • Oversees assigned areas of human resources related areas.

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3 | Human Resources Analyst/Senior Human Resources Analyst Job Description
• Conducts salary, benefit and classification surveys; computes and compiles survey data and results; recommends modifications to administrative programs, policies and procedures as appropriate; responds to survey requests from other agencies.
• Plans, recommends, and carries out recruitment programs; coordinates intensive recruitment efforts with operating departments; develops sources of qualified applicants; develops, analyzes, evaluates and administers written, oral, and performance examinations and other selection instruments; coordinates, performs, and/or has lead responsibility for a variety of human resources services. • Assists with labor relations activities including conducting research for negotiations and directing implementation of MOU changes.
• Performs specialized research, analyzes requests, and determines steps required to reach a conclusion or desired result.
• Serves as liaison between Human Resources and other divisions, departments, and outside agencies. • Analyzes and/or reviews data regarding human resources issues. • Analyzes the effect of new laws or administrative regulations on human resources programs. • Prepares policies and designs procedures and forms for implementation. • Interprets provisions of Memoranda of Understanding with employee organizations. • Identifies needs and helps develop goals and objectives. • Serves as secretary for the Personnel Commission as assigned; compiles agenda and notices and takes minutes.
• Performs various complex duties as assigned with limited direction.

EMPLOYMENT STANDARDS
Knowledge of:
• Operations, services, and activities of a human resources program. • Principles and practices of public human resources administration including recruitment, selection, classification and pay, labor relations, benefits, training, and Equal Employment. • Pertinent federal, state, and local laws, codes, and regulations governing public human resources administration.
• Methods and techniques of recordkeeping and reporting requirements related to public human resources administration.
• Research methods and techniques.
• Correct English usage, spelling, grammar, and punctuation. • Principles of mathematics and basic statistics related to data analysis, setting exam pass points, and financial recordkeeping.
• Office procedures, methods, and equipment including computers and applicable software applications such as word processing, spreadsheets, and databases.

Ability to:
• Provide professional human resources management services independently in the absence of supervision.
• Interpret and apply City personnel program rules, procedures, and policies. • Exercise sound independent judgement within established guidelines. • Prepare, administer, and score written tests and other selection devices.

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4 | Human Resources Analyst/Senior Human Resources Analyst Job Description
• Prepare and maintain a variety of reports, correspondence, records and statistical reports including personnel files, regulatory statistical reports, and related documents. • Gather and analyze a variety of data.
• Develop and implement revisions to standard operating procedures to improve effectiveness or comply with regulatory changes as appropriate.
• Handle multiple projects simultaneously and be sensitive to changing priorities and deadlines. • Maintain confidentiality.
• Operate office equipment including computers and supporting word processing, spreadsheet, and database applications.
• Communicate clearly and concisely both orally and in writing. • Establish and maintain effective working relationships with those contacted in the course of work.

Senior Human Resource Analyst (in addition to the above) Ability to:
• Exercise independent judgment and initiative.
• Perform difficult and complex professional human resources work. • Define and select alternatives, draw conclusions, formulate recommendation,; and project consequences of recommendations.
• Train and provide project direction to other professional, technical, and paraprofessional staff. • Develop, administer, analyze, and evaluate tests for a variety of occupations. • Function under stressful conditions and in emotional and/or confrontational situations requiring instructing, persuading and motivating people.

EDUCATION/TRAINING AND EXPERIENCE:

Any combination of training and experience which provides the required knowledge and abilities is qualifying.

A typical way to obtain the knowledge and abilities is:

Human Resources Analyst
Education/Training:

Equivalent to a Bachelor’s degree from an accredited college or university with major course work in public administration, human resources, business administration, or a closely related field..

Experience:

Two years of increasingly responsible human resources experience, preferably in the public sector.

LICENSE & CERTIFICATION:
• Possession of a valid California Class C driver’s license and a safe driving record.

Senior Human Resources Analyst
Education/Training:

Equivalent to a Bachelor’s degree from an accredited college or university with major course work in public administration, human resources, business administration, or a closely related field.

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5 | Human Resources Analyst/Senior Human Resources Analyst Job Description
Experience:

Three years of increasingly responsible and difficult professional human resources experience, preferably in the public sector.

LICENSE & CERTIFICATION:
• Possession of a valid California Class C driver’s license and a safe driving record.

PHYSICAL DEMANDS AND WORKING ENVIRONMENT
The conditions herein are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential job functions.
• Environment: Work is performed primarily in a standard office environment with extensive public contact and constant interruptions.
• Physical: Primary functions require sufficient physical ability and mobility to work in an office setting; to stand or sit for prolonged periods of time; to occasionally stoop, bend, kneel, crouch, reach, and twist; to lift, carry, push, and/or pull light to moderate amounts of weight; to operate office equipment requiring repetitive hand movement and fine coordination including use of a computer keyboard; and to verbally communicate to exchange information. • Vision: See in the normal visual range with or without correction. • Hearing: Hear in the normal audio range with or without correction.

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Reso No. (CM)
Reference: Reso No. 194-16(CM) (Rescind)
Meeting Date: 070726 SWZ ______ TV ______ HR ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING AND AUTHORIZING THE REVISED JOB

CLASSIFICATION AND JOB DESCRIPTION FOR SENIOR HUMAN

RESOURCES ANALYST (MANAGEMENT) AT THE ESTABLISHED
SALARY RANGE OF $42.18-$56.52 PER HOUR OR $7,310.42-$9,796.71 WHEREAS, on June 25, 2026, the Personnel Commission of the City of Watsonville reviewed and recommended to the City Council the revised job classification and job description of Senior Human Resources Analyst; and
WHEREAS, the City Manager has submitted her report and recommendation to the City Council to approve and authorize the revised job classification and job description of Senior Human Resources Analyst, a copy of which is attached hereto and incorporated herein by this reference.

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 and authorizing the revised job classification and job description of Senior Human Resources Analyst 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.

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Reso No. (CM)
Reference: Reso No. 194-16 (CM) (Rescind)
Meeting Date: 070726
2 2. That the revised job classification and job description of Senior Human Resources Analyst (Management), attached hereto, is hereby approved and authorized at the established salary range of $42.18-$56.52 per hour or $7,310.42-$9,796.71 per month. **********************************

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1 | Human Resources Analyst/Senior Human Resources Analyst Job Description
City of Watsonville
Job Description
JOB TITLE: Human Resources Analyst/Senior Human Resources Analyst DATE APPROVED:

DISTINGUISHING CHARACTERISTICS:

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2 | Human Resources Analyst/Senior Human Resources Analyst Job Description
EXAMPLES OF ESSENTIAL DUTIES:

Senior Human Resources Analyst (in addition to the above duties) • Oversees assigned areas of human resources related areas.

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EDUCATION/TRAINING AND EXPERIENCE:

Any combination of training and experience which provides the required knowledge and abilities is qualifying.

A typical way to obtain the knowledge and abilities is:

Human Resources Analyst
Education/Training:

Equivalent to a Bachelor’s degree from an accredited college or university with major course work in public administration, human resources, business administration, or a closely related field..

Experience:

Two years of increasingly responsible human resources experience, preferably in the public sector.

LICENSE & CERTIFICATION:
• Possession of a valid California Class C driver’s license and a safe driving record.

Senior Human Resources Analyst
Education/Training:

Equivalent to a Bachelor’s degree from an accredited college or university with major course work in public administration, human resources, business administration, or a closely related field.

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5 | Human Resources Analyst/Senior Human Resources Analyst Job Description
Experience:

Three years of increasingly responsible and difficult professional human resources experience, preferably in the public sector.

LICENSE & CERTIFICATION:
• Possession of a valid California Class C driver’s license and a safe driving record.

PHYSICAL DEMANDS AND WORKING ENVIRONMENT
The conditions herein are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential job functions.
• Environment: Work is performed primarily in a standard office environment with extensive public contact and constant interruptions.
• Physical: Primary functions require sufficient physical ability and mobility to work in an office setting; to stand or sit for prolonged periods of time; to occasionally stoop, bend, kneel, crouch, reach, and twist; to lift, carry, push, and/or pull light to moderate amounts of weight; to operate office equipment requiring repetitive hand movement and fine coordination including use of a computer keyboard; and to verbally communicate to exchange information. • Vision: See in the normal visual range with or without correction. • Hearing: Hear in the normal audio range with or without correction.

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Reso No. (CM)
Reference: Reso No.170-91 and 24-02 (CM) (Rescind)
Meeting Date: 070726 SWZ ______ TV ______ HR ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING AND AUTHORIZING THE REVISED JOB

CLASSIFICATION AND JOB DESCRIPTION FOR HUMAN RESOURCES

TECHNICIAN (CONFIDENTIAL) AT THE ESTABLISHED SALARY
RANGE OF $29.53-$39.58 PER HOUR OR $5,118.79-$6,859.69 PER

MONTH AND REPEALING THE JOB CLASSIFICATION AND

DESCRIPTION OF PERSONNEL TECHNICIAN
WHEREAS, on June 25, 2026, the Personnel Commission of the City of Watsonville reviewed and recommended to the City Council the revised job classification and job description of Human Resources Technician; and
WHEREAS, the City Manager has submitted her report and recommendation to the City Council to approve and authorize the revised job classification and job description of Human Resources Technician, a copy of which is attached hereto and incorporated herein by this reference.

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 and authorizing the revised job classification and job description for Human Resources Technician 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.

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Reso No. (CM)
Reference: Reso No. 170-91 and 24-02 (CM) (Rescind)
Meeting Date: 070726
2 2. That the job classification and job description of Human Resources Technician (Confidential), attached hereto, is hereby approved and authorized at the established salary range of $29.53-$39.58 per hour or $5,118.79-$6,859.69 per month.

3. That the job classification and description of Personnel Technician is hereby revoked effective immediately.
**********************************

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1 | H u m a n R e s o u r c e s T e c h n i c i a n J o b D e s c r i p t i o n City of Watsonville
Job Description
JOB TITLE: Human Resources Technician DATE APPROVED:

DEPARTMENT: Human Resources SUPERSEDES: January 22, 2002 REPORTS TO: Senior Human Resources Analyst
SUPERVISION: N/A
EMPLOYEE UNIT: Confidential
FLSA : Non-Exempt
JOB SUMMARY:

Under general supervision, performs a wide variety of complex and technical administrative support functions in support of the day-to-day Human Resources Department operations including recruitment coordination, test administration, new employee processing, and maintenance of confidential records; provides information and assistance to City employees and the general public regarding human resources activities, processes, policies, and procedures; and performs other related duties as required.

DISTINGUISHING CHARACTERISTICS:

This is a technical level, paraprofessional class in the Human Resources Department working under limited supervision and requiring knowledge of human resources practices, policies, and procedures. Incumbents in this classification act as an information source to employees regarding recruitments, the hiring process, rules and regulations and employee benefits. This class is distinguished from the next higher class of Human Resources Analyst by the limited range of duties performed and the limited discretion in carrying out those duties.

EXAMPLES OF ESSENTIAL DUTIES:

Additional duties may be assigned.
 Performs a wide variety of responsible technical, administrative, and office support duties in support of the Human Resources Department including in the areas of recruitment coordination, test administration, new employee processing, and maintenance of confidential records.  Coordinates recruitment and testing activities which may include written, performance, oral, bilingual, polygraph and psychological evaluations, and background investigations.  Develops recruitment advertisements; designs, creates, and distributes job announcements.  Schedules and coordinates rating panels, proctors, facilities, and materials; assists rating panels as necessary; notifies applicants of the status of selection process.  Conducts orientations for newly hired regular and temporary employees which includes dissemination of Human Resources Rules and Regulations, registration for PERS, health and life insurances benefits andfingerprinting.
 Performs a variety of duties related to City-wide trainings; develops, plans, coordinates, and conducts training classes for City employees; researches and recommends new training; develops and designs

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2 | H u m a n R e s o u r c e s T e c h n i c i a n J o b D e s c r i p t i o n training schedule/calendar; selects and schedules instructors; gathers and prints materials and maintains training records.
 Performs a variety of general office support duties; composes, types and proofreads letters and other documents; enters, updates, and maintains employee information; maintains automated and manual files and records including confidential files; answers telephone and in-person inquiries; responds to requests for employment verification; prepares and processes periodic and special reports including all Personnel Actions.
 Prepares monthly employee evaluation notices for Department Heads.  Responds to salary, benefit or other surveys as necessary.  Orders and requisitions supplies as needed; pays department invoices.  Completes Department of Motor Vehicle Pull Program forms; maintains City driver list.  Takes and transcribes Personnel Commission minutes as necessary.  Responds to inquiries from employees and the public on a variety of personnel related topics; provides information within area of assignment.
 Provides administrative support for the City Manager, Assistant City Manager, Deputy City Manager, and other administrative staff as needed.
 Assists with other departmental operations and special projects as assigned.  Performs related duties as required.

EMPLOYMENT STANDARDS
Knowledge of:
 Basic human resources administration functions and procedures including recruitment and selection processes.
 General policies, procedures, services, and programs of the City.  Human resources program rules, policies and procedures.  Mathematical principles.
 Correct English usage, spelling, grammar, and punctuation.  Methods and techniques for basic report preparation and writing.  Methods and techniques for record keeping and filing.  Methods and techniques of proper phone etiquette.
 Customer service techniques, practices, and principles.  Office procedures, methods, and equipment including computers and applicable software applications such as word processing, spreadsheets, and databases.

Ability to:
 Perform a variety of para-professional duties and activities of a general and specialized nature in support of the Human Resources Department.
 Maintain accurate and up-to-date records and files.
 Perform mathematical computations.
 Process detailed paperwork in accordance with specific policies and procedures.  Determine the appropriate course of action in stressful situations.  Use proper grammar, spelling and punctuation.
 Maintain confidentiality of information
 Operate office equipment including computers and supporting word processing, spreadsheet, and database applications.

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3 | H u m a n R e s o u r c e s T e c h n i c i a n J o b D e s c r i p t i o n  Interpret human resources rules, laws, and policies with good judgement, while carrying out a variety of technical and administrative duties
 Administer and score written tests and other selection devices.  Prepare and maintain a variety of personnel records, including selection process material and personnel action information.
 Compose correspondence and compile and arrange data in a readable and comprehensible manner.  Effectively organize and prioritize work assignments.  Type and enter data and transcribe notes and/or dictation at a speed necessary for successful job performance.
 Read and apply provisions of employee MOU’s.
 Work independently and as a team member.
 Communicate clearly and concisely, both orally and in writing.  Establish and maintain effective working relationships with those contacted in the course of work.

EDUCATION/TRAINING AND EXPERIENCE:

Any combination of training and experience which provides the required knowledge and abilities is qualifying.

A typical way to obtain the knowledge and abilities is:

Education/Training:

Equivalent to the completion of the twelfth grade supplemented by two years of college level course work in human resources or a related field.

Experience:

Two years of responsible technical and office support experience, preferably in a human resources environment.

LICENSE & CERTIFICATION:
 Possession of a valid California Class C driver’s license and a safe driving record.

Other Requirements:
 Bilingual English/Spanish oral skills is highly preferred.

PHYSICAL DEMANDS AND WORKING ENVIRONMENT
The conditions herein are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential job functions.
 Environment: Work is performed primarily in a standard office environment with extensive public contact and constant interruptions.
 Physical: Primary functions require sufficient physical ability and mobility to work in an office setting; to stand or sit for prolonged periods of time; to occasionally stoop, bend, kneel, crouch, reach, and twist; to lift, carry, push, and/or pull light to moderate amounts of weight; to operate office equipment requiring repetitive hand movement and fine coordination including use of a computer keyboard; and to verbally communicate to exchange information.  Vision: See in the normal visual range with or without correction.  Hearing: Hear in the normal audio range with or without correction.

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JOB DESCRIPTIONS AT EXISTING SALARY RANGE
RECOMMENDATION:

Adopt resolutions approving revised job classifications and descriptions at existing salary ranges for the following positions:
 Library Assistant at a salary range of $25.60-$34.30 per hour or $4,436.47-$5,945.18 per month  Library Clerk at a salary range of $21.73-$29.11 per hour or $3,765.69-$5,046.38 per month  Library Director at a salary range of $77.53-$103.90 per hour or $13,439.36-$18,010.03 per month
 Literacy Program Assistant at a salary range of $25.60-$34.30 per hour or $4,436.47- $5,945.18 per month
 Senior Library Assistant at a salary range of $28.15-$37.73 per hour or $4,879.51-$6,539.00 per month
The salaries are subject to their respective Memorandum of Understanding contract increases in the first full period of July 2026, as approved by Council.

BACKGROUND:

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2 and physical requirements necessary to perform the work, as well as supervisor and managerial responsibilities. Each questionnaire was reviewed by the employee’s supervisor to ensure completeness and accuracy.

DISCUSSION:

Highlights of the proposed changes to the specific job descriptions are outlined below.

1. Library Assistant (revised)
Updated to include recommended language updates from the class and compensation study consultant review to provide consistency across the City. Updates included re-wording of job duties to enhance clarity, key competencies, and responsibilities. Some additional language outlined below was added due to current staff already performing those job functions. No change to compensation is recommended at this time.

Language added under “essential duties” includes:
 Assists patrons in accessing online resources and basic computer services in the computer lab as needed.

Clarifying language added under “ability to:
 Maintain a schedule that includes working at least one evening per week and a rotating Saturday.

2. Library Clerk (revised)
Updated to include recommended language updates from the class and compensation study consultant review to provide consistency across the City. Updates included re-wording of job duties to enhance clarity, key competencies, and responsibilities. No change to compensation is recommended at this time.

Clarifying language added under “ability to:
 Maintain a schedule that includes working at least one evening per week and a rotating Saturday.

3. Library Director (revised)
Updated to include recommended language updates from the class and compensation study consultant review to provide consistency across the City. Updates included re-wording of job

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Watsonville City CouncilJuly 7, 2026

Watsonville City Council
July 7, 2026