Watsonville City Council
August 25, 2026

City of Watsonville & WWW Shared Used Agreement

bilingual programming in the Nature Center which supports the mission of WWW and the City’s environmental goals, such as wetland and watershed preservation and restoration, trails maintenance and development, volunteer and community engagement in environmental conservation, climate action plan implementation, storm water pollution prevention, urban greening and tree management and planting; and L. WHEREAS, the City and WWW intend to raise and have successfully raised additional funds to support the design and construction of the Nature Center Exhibits (“Exhibits”) and educational features of the Nature Center and for the programs to be run out of the center, including $1.6 million in grants and private donations provided to WWW, from the California Natural Resources Agency’s California Museum Grant Program (“Museum Grant Program”), California Coastal Conservancy’s Coastal Stories Program (“Coastal Stories”), other State grants, and private foundation grants, donations and WWW sources; and
M. WHEREAS, the Museum Grant Program provides funding for qualified projects that assist and enhance museums that are rooted in, and reflective of, previously underserved communities; and
N. WHEREAS, to ensure adequate funding for the desired educational programming in the Nature Center, WWW and the City have jointly applied to the Museum Grant Program which has awarded to WWW $500,000 specifically for the Parties to develop bilingual and culturally relevant educational Exhibits for the Nature Center to facilitate and conduct educational programs; and received $169,900 from the Coastal Stories Grant Program for design, fabrication, and installation of a mosaic mural for the exterior of the Nature Center; and

O. WHEREAS, the Museum Grant Program, Coastal Stories Grant Program, and additional funding sources, require the City, as the owner of the Nature Center, and WWW to have a formal agreement memorializing the Parties’ intent to jointly provide Docusign Envelope ID: EAD97302-5CC2-83D6-8101-C5FE649808CA

City of Watsonville & WWW Shared Used Agreement

educational programming in the Nature Center and to jointly provide for the required maintenance and operations of the grant-funded facility for at minimum 15 years following installation of the grant-funded educational Exhibits; and

P. WHEREAS, on about May 9, 2023, the Parties entered into, and the City Council adopted a Resolution approving, a Memorandum of Understanding (“2023 MOU”), whereby the City was to construct and develop the Nature Center located at 30 Harkins Slough Road in the City with the cooperation and assistance of WWW. The 2023 MOU was intended to memorialize the Parties’ intended collaboration regarding use of the Nature Center, consistent with the 2019 MOU associated with the Nancy Lockwood Donor Advised Fund and with the requirements of the Museum Grant Program and any additional grant funded programs to be applied for at a future date; and Q. WHEREAS, on about November 20, 2024, the City determined that the project costs, as determined through a request for proposal process and proposals received, exceeded the budgeted amount, and, therefore, it could not proceed under the 2023 MOU; and
R. WHEREAS, the City desires, in lieu of the 2023 MOU, to renovate the existing Ramsay Park Family Center located at 1301 Main Street in the City to house the Nature Center that will have shared use with WWW consistent with the requirements of the Nancy Lockwood Donor Advised Fund, the Museum Grant Program, Coastal Stories Grant Program, and additional grand funds applied to this collaborative project.

Now, therefore, the Parties agree as follows:

1. Premises
The property within Ramsay Park, located at 1301 Main Street, Watsonville, CA 95076, as well as all appurtenances to the property (“Premises”), are subject to this Agreement.

The Premises are currently occupied by the Ramsay Park Family Center (“Family Docusign Envelope ID: EAD97302-5CC2-83D6-8101-C5FE649808CA

City of Watsonville & WWW Shared Used Agreement

Center”). Pursuant to this Agreement, the Premises will be renovated so that the Family Center houses the Nature Center. A site map of the Premises and a floor plan for the Nature Center are attached to this Agreement as Figure 1 within Exhibit A.

2. Term, Termination, and Renewal
The Effective Date of this Agreement shall be September 1, 2026. The initial term of this Agreement is sixteen (16) years. If WWW substantially complies with the terms of this Agreement during the initial term, WWW shall have two (2) options to renew this Agreement for an additional term, which shall not, under any circumstances, exceed ten (10) years for each option.

To exercise the options, WWW shall notify City in writing no more than eighteen (18) months and no less than six (6) months before the expiration of each term of WWW’s intent to exercise such options. City shall then have thirty (30) days to inform WWW in writing of any objection to the exercise of the option.

WWW may elect to terminate this Agreement for any lawful reason by providing ninety (90) days’ written notice to the City. The City may terminate this Agreement only for non-compliance with any provision of this Agreement, or violation of any local, State, or federal law, rule, or regulation. City shall provide the WWW with thirty (30) days’ notice of noncompliance. If WWW has not substantially cured the noncompliance within ninety (90) days, City may terminate this Agreement.

3. Rent
WWW shall pay one dollar ($1) per year in rent to the City.

4. Maintenance and Operation of the Premises
The Parties will collaborate to maintain and operate the Premises consistent with the terms of this Agreement.

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City of Watsonville & WWW Shared Used Agreement

The Parties agree to hold an operations meeting of staff with supervisory responsibilities of the Nature Center, such as the City’s Public Works and Utilities Director, Parks and Community Services Director, and the Executive Director of WWW, or the designees of such staff members, on at least an annual basis to review operations.

A. City hereby agrees to:
(1) Construct and develop, with the cooperation and assistance of WWW, the Nature Center on the Premises;
(2) Pay for water, garbage, sewer, electrical and gas utilities for the Premises; (3) Consult with WWW on issues relating to the construction and maintenance of the Family Center and Nature Center that may affect the Nature Center, offices, and Exhibits;
(4) Maintain the Premises, including but not limited to, the exterior, interior, roof, equipment, fixtures, furniture, and foundation in good working and in safe condition for public use, including routine janitorial services; (5) Provide for WWW’s use at least four (4) workstations or, at minimum, half of the available office area designated for staffing within the Premises and, to the extent feasible, additional office space for running the programs described below;
(6) Provide access to the Nature Center within the Premises for WWW to implement education and environmental programs described below.

Available program time for WWW led programs shall entail no less than fifty percent (50%) of the available program schedule time, Monday through Friday 8:00 am – 5:00 pm and weekday evenings, aligned with times for student based and community programming, and no less than 4 hours of time on weekends for WWW programming that can be run concurrently with open hours for the Nature Center. Additional program time on weekday evenings and weekends will also be made available for Docusign Envelope ID: EAD97302-5CC2-83D6-8101-C5FE649808CA

City of Watsonville & WWW Shared Used Agreement

WWW to operate programs for students, youth, and community members when not in conflict with City programming.
(7) Allow WWW to install a mosaic on the front wall left of the main entrance of the Premises and donor recognition plaques within the Nature Center; (8) Provide name recognition and logo placement for WWW on the front of the Family Center and provide branding recognition of the partnership with WWW within the Nature Center naming and communication materials.

City and WWW will meet and confer to agree on the Nature Center’s exterior signage prior to the opening of the Center and continue to meet and confer to agree on all branding and communication materials on an ongoing basis.
(9) Maintain the grant-funded educational Exhibits consistent with the requirements of the Museum Grant Program, Coastal Stories Grant Program, and terms consistent with any additional grant conditions by mutual agreement.

B. WWW hereby agrees to:
(1) Maintain the portion of the Nature Center utilized for WWW office space, educational programing, and Exhibits by keeping these areas neat and organized;
(2) Provide free educational and environmental programs to the public including, but not limited to:
a. Workshops and trainings;
b. Environmental education and community engagement programs with school groups and community audiences;
c. Docent trainings and support for docent and volunteer programs to support staffing of the Nature Center;
d. Evening and/or speaker series;
(3) Seek funding to provide staff for WWW and shared WWW and City Docusign Envelope ID: EAD97302-5CC2-83D6-8101-C5FE649808CA

City of Watsonville & WWW Shared Used Agreement

environmental programs for students, youth, and community audiences and provide staff or volunteer support for Nature Center open hours; (4) Recruit and train volunteers for City and WWW programs for wetlands, trails, urban forestry, and other environmental conservation and sustainability programs.
(5) Provide environmental programs that benefit Pajaro Valley wetlands, trails, urban forestry, urban greening, watershed health, agricultural and groundwater sustainability, climate adaptation, and resilience, and other environmental conservation and sustainability measures and related arts and science;
(6) Provide funding not to exceed ten thousand dollars ($10,000) for installation of outdoor native plant and low water landscape demonstration areas adjacent to the Nature Center, as shown in Figure 1 in Exhibit A. (7) Consistent with the Museum Grant Program requirements, create a $30,000 maintenance fund to repair, reconstruct, and update the content of grant-funded educational Exhibits.
(8) Furnish and supply its independent office space for its office use and related program functions.

5. Exhibits Construction and Installation; Additional Facility Improvements Exhibits Construction and Installation: WWW will procure and fabricate the Exhibits and furnish to the City for installation in the Nature Center exhibit space. In advance of the bids going out, the City and WWW will determine the specifications and costs reasonable, necessary, and available for construction and installation of the Exhibits.

WWW and the City will meet and confer in good faith to determine the proper means of contracting for installation of Exhibits. WWW shall reimburse the City for any costs expended by the City for installation and related costs of the Exhibits within the Nature Center in accordance with the funds raised for the Exhibits as determined by mutual agreement in writing prior to contracting. All agreed upon expenses for reimbursement shall be documented in writing and signed by WWW’s Executive Director or designated Docusign Envelope ID: EAD97302-5CC2-83D6-8101-C5FE649808CA

City of Watsonville & WWW Shared Used Agreement

representative. Any changes to the planned expenditures beyond the initial agreed upon and contracted funds will be requested by the City and must be agreed to in writing within three (3) days of the request for additional expenditures to be authorized.

Construction and installation of the Exhibits shall comply with all grant funding and donor restriction requirements.

WWW shall provide a construction manager, also referred to as an owner’s representative, to coordinate with the City on development of the bid package, bidding, fabrication, and installation of the Exhibits. This person will coordinate directly with the City’s project manager for the Nature Center.

Additional Facilities within Ramsay Park: With the City’s approval, and after obtaining required permits, WWW may develop additional facilities, improvements, and/or renovations for educational and environmental programming or public education within Ramsay Park (“Additional Facilities”). The City may only approve the development of Additional Facilities within the site, identified in Figure 3 of Exhibit A, following a separate agreement between the Parties for the use of this park space.

Any Additional Facilities shall be developed at WWW’s sole expense, unless otherwise agreed upon in writing with the City.

At the expiration or termination of this Agreement, all Exhibits and Additional Facilities shall become City’s property free of all claims to or against them by WWW or any third party.

6. Scheduling of Shared Use of the Nature Center
WWW and the City agree to the following procedure for scheduling use of the Nature Center:
(a) The WWW may utilize the Premises, including the Nature Center and office space on a year-round basis. In accordance with City's Special Use and Design Permit the Nature Center may operate up to seven days Docusign Envelope ID: EAD97302-5CC2-83D6-8101-C5FE649808CA

City of Watsonville & WWW Shared Used Agreement

a week. Written approval from the Parks and Community Services Director or designee is required for WWW to operate past 10:00pm on any date.

(b.) The Pajaro Valley Unified School District, and other partners can schedule use of the Nature Center through WWW for scheduled programs and events at no cost, consistent with the intent and purpose of the Nature Center, and shall schedule their respective use of the Nature Center with the WWW.
(c.) WWW shall schedule uses of the Nature Center on a year-round basis and may in its discretion close any part of the Nature Center for annual or seasonal maintenance. Such maintenance schedule shall be filed with City Parks & Recreation Director, and the City Public Works and Utilities Director. WWW shall schedule use of the community room and kitchen with the City Parks and Recreation Director or a designee no less than three (3) months in advance. In the event that use of the community room or kitchen are requested less than three (3) months in advance, the City may permit scheduled use of this space at their discretion based on availability.
(d.) City will not schedule use of the Nature Center without prior consultation with WWW but reserves the right to schedule events that may conflict with WWW’s “additional programming” as described in Section 4(A) (6). (e.) City staff and WWW will meet and confer to determine a reasonable programming schedule. Within these scheduling parameters, WWW may use the entire Premises, consistent with the City's maintenance and facility use permit requirements. WWW and the City shall meet and confer to agree on their anticipated program schedule for the Nature Center at minimum 30 days in advance of program time.
(f.) City staff and WWW will meet and confer to agree on public promotion, outreach, communication, and marketing campaigns for the Nature Docusign Envelope ID: EAD97302-5CC2-83D6-8101-C5FE649808CA

City of Watsonville & WWW Shared Used Agreement

Center, including the licensing of tradenames and marks on an ongoing basis.
(g.) In order to facilitate strong communication and planning between the City and WWW, the City and WWW will meet and confer on planned programing, facility, or facility use changes for the Nature Center, including any grant applications by City, WWW or other organizations or agencies that would utilize the Nature Center.

7. Compliance with Rules, Regulations, and Laws
When using and occupying the Premises and in conducting activities and programs pursuant to this Agreement, WWW shall comply with all applicable laws, rules, regulations, and orders of the County of Santa Cruz, City of Watsonville or any governmental subdivision, body, or authority, including all federal, state, and municipal laws and ordinances.

8. Assignment and Subletting
WWW shall not assign, transfer, or sublet any interest in this Agreement nor the performance of any of the WWW’s obligations under this Agreement. Any attempt by WWW to so transfer this Agreement or any rights, duties or obligations arising hereunder shall be void and of no effect.

9. Signs, Posters, Buildings
Except as provided by this Agreement, no advertising signs, posters, or similar devices shall be erected, displayed or maintained in, on, about or above the Premises or the structures thereon without the written approval of the City Parks & Recreation and/or Public Works and Utilities Director(s). Operations of the WWW shall not unreasonably interfere with the property, interests, operations, or activities of the City.

10. Waiver of Damages and Indemnification
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City of Watsonville & WWW Shared Used Agreement

City shall not be liable to WWW for any injury or damage that may result to any person or property by or from any cause whatsoever, except as results from acts of negligence on the part of City, its agents, servants, employees, or invitees. WWW shall not be liable to City for any injury or damage that may result to any person or property by or from any cause whatsoever, except as results from acts of negligence on the part of WWW, its agents, servants, employees, or invitees.

WWW represents that it has the expertise and experience necessary to perform the services and undertake the duties agreed to be performed by WWW under this Agreement, and City is relying upon the skill and knowledge of WWW to perform said services and duties.

WWW shall defend (with legal counsel reasonably acceptable to the City), indemnify, and hold harmless City, its elected officials, officers and employees, against any loss or liability arising out of or resulting in any way from work performed under this Agreement due to the willful or negligent acts (active or passive) or errors or omissions by WWW or WWW’s officers, employees or agents.

City shall defend (with legal counsel reasonably acceptable to WWW), indemnify, and hold harmless WWW, directors, officers, volunteers, agents, and employees against any loss or liability arising out of or resulting in any way from work performed under this Agreement due to the willful or negligent acts (active or passive) or errors or omissions by City or City’s officers, employees or agents.

11. Insurance
At WWW’s sole expense, WWW shall be required to maintain the required insurance policies described herein throughout the entire duration of the Agreement. All required endorsements and certificates of insurance shall be delivered to City Clerk upon execution of this Agreement. All policies shall be issued by companies authorized and admitted to do business in the State of California with a financial rating of at least A+ Docusign Envelope ID: EAD97302-5CC2-83D6-8101-C5FE649808CA

City of Watsonville & WWW Shared Used Agreement

status as rated in the most recent edition of Best Insurance Reports. WWW shall annually deliver to the City certified copies of all insurance policies demonstrating proof of coverage and endorsements required under this Agreement, and the City reserves the right to require complete, certified copies of all required insurance policies, including endorsements, at any time.

WWW’s failure or refusal to procure or maintain the required insurance coverage, or failure or refusal to furnish City with proof that coverage has been procured and is in full force and paid for, shall not waive WWW’s obligation to procure the coverage and furnish proof. In such an event, the City shall have the right, at City’s election and without notice to WWW, but without any obligation to do so, to procure and maintain such coverage. WWW shall reimburse City on demand for any premiums the City pays in connection with such procurement.

WWW, as well as any partners or organizations who schedule use of the Nature Center through WWW, are required to obtain the following insurance coverage:

11.1. Workers Compensation Insurance
A policy issued by a California admitted insurance company covering the full liability of the WWW to any and all persons employed by the WWW directly or indirectly, in accordance with the provisions of the Labor Code of the State of California relating to Workers Compensation Insurance.

11.2. Commercial General Liability Insurance
WWW shall secure and maintain a Commercial General Liability Insurance policy that provides a combined single limit of not less than two million dollars ($2,000,000) for all personal injuries, death, dismemberment or property damage occurring during the policy period, regardless of when a claim is made.

11.3 Additional Requirements
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City of Watsonville & WWW Shared Used Agreement

All required insurance policies shall contain statements that:
(1) The City, its elected and appointed officials, employees, volunteers and contractors are additional insureds, and WWW for any third party use of the Premises, insuring, indemnifying and saving harmless and agreeing to defend such additional insured against all suits, loss, damage, liability, claims, or actions of any person or persons for or on account of any injuries or damages to persons or property sustained or arising out of the activities of the WWW, or in consequence thereof, whether directly or indirectly, and to pay all judgments, costs and expenses of litigation in connection therewith.
(2) The insurance afforded by these policies applies severally as to each insured, except that the inclusion of more than one insured shall not operate to increase the limit of the company’s liability, and the inclusion hereunder of any person or organization as an insured shall not affect any right which such person or organization would have as a claimant if not so included;
(3) The insurance shall be primary insurance over any other insurance which may be maintained by City, which other insurance shall be considered excess only;
(4) The policies may not be canceled, nor the coverage reduced until thirty (30) days after a written notice of such cancellation or reduction in coverage is delivered to City at the address contained herein; (5) The insurance companies waive any and all right of subrogation against City.

12. Notice of Breach & Mediation
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City of Watsonville & WWW Shared Used Agreement

If either Party fails to perform any of its material obligations under this Agreement, the nonbreaching Party may send a notice to the breaching Party and the Parties shall meet and confer to resolve the breach. If the breach is still not resolved within a reasonable time under the circumstances, and the issue cannot be remedied, the Parties agree to undergo mediation to resolve the conflict. To proactively resolve any conflicts, the Parties agree to work collaboratively and at least annually hold an operations meeting with staff with supervisory responsibilities of the Nature Center, such as the Public Works and Utilities Director of the City of Watsonville or Parks and Community Services Director and or designee and the Executive Director of WWW to review operational issues and be available to resolve conflicts as they arise.

13. Arbitration
The Parties agree that any dispute between them arising out of, based on or relating to this Agreement shall be resolved exclusively by arbitration conducted in accordance with the rules then in effect of the American Arbitration Association. Such arbitration shall be held in Santa Cruz County, California. Judgment upon the award rendered shall be final and non-appealable and may be entered in any court having jurisdiction.

The prevailing Party shall be entitled to recover its expenses arising out of any such proceeding, including reasonable attorneys’ fees.

14. Discrimination
When using and occupying the Premises, WWW, its agents, employees, and volunteers shall not discriminate based on age, race, sex, ethnicity or religion.

15. Waiver
Any waiver, expressed or implied, by either party of any breach by the other party of any agreement, term or condition of this Agreement shall not be, or be construed to be, a waiver of any subsequent breach of a like or other agreement, term of conditions hereof; and the acceptance of rent hereunder shall not be, or be construed to be, a waiver of any breach of any agreement, term or condition of this Agreement, except as Docusign Envelope ID: EAD97302-5CC2-83D6-8101-C5FE649808CA

City of Watsonville & WWW Shared Used Agreement

to the payment of rent so accepted. The rights and remedies of either party under this Agreement shall be cumulative and in addition to any and all other rights and remedies which either party has or may have.

16. Notices
All notices, consents, waivers, or other communications which this Agreement requires or permits either Party to give to the other shall be in writing and shall be served by registered or certified mail addressed to the respective Parties as follows:

To City: To WWW:

City of Watsonville Watsonville Wetlands Watch
City Clerk’s Office Attn: Executive Director
275 Main Street, Suite 400 PO Box 1239
Watsonville, CA. 95076 Watsonville, CA. 95077

17. Right of City to Enter for Inspection
City shall have the right to enter the Nature Center at all reasonable times during the term of this Agreement for the purpose of making any inspection it may deem expedient to the proper enforcement of this Agreement.

18. Governing Law. This Agreement shall be governed by and interpreted according to the laws of the State of California.

19. Miscellaneous
Time is of the essence of this Agreement. Whenever consent or approval of either party is required, that party shall not unreasonably withhold such consent or approval. City shall deliver to WWW, on execution of this Agreement a copy of a resolution of its governing body authorizing the execution of this Agreement.

20. Complete Agreement.

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City of Watsonville & WWW Shared Used Agreement

This Agreement constitutes the entire agreement between the Parties and supersedes all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, with respect to the subject matter hereof. This Agreement cannot be amended or modified without written approval by both Parties.

21. Signatures
This Agreement may be electronically signed in counterparts and will be as enforceable as a single document with wet signatures.

IN WITNESS THEREOF, the parties hereto have executed this Agreement the day and year first hereinabove written.

CITY OF WATSONVILLE WATSONVILLE WETLANDS WATCH
BY BY
________________________________ ______________________________ By: TAMARA VIDES By: JONATHAN PILCH
City Manager Executive Director
ATTEST: APPROVED AS TO FORM:

BY BY
___________________________ ___________________________ Irwin Ortiz, City Clerk Samantha W. Zutler, City Attorney

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City of Watsonville & WWW Shared Used Agreement

Exhibit A.

Site Maps
Figure. 1 Premises
 Nature and Family Center designated in red.
 Exterior areas for demonstration garden and other activities designated in yellow.

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City of Watsonville & WWW Shared Used Agreement

Figure. 2 Floor Plan
 Shared use areas designated in red.
 WWW exclusive use area designated in blue.
 WWW and City may modify planned use areas by mutual agreement.

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City of Watsonville & WWW Shared Used Agreement

Figure 3. Additional Facilities
Additional Facilities designated in red.

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1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, August 25, 2026
TO: CITY COUNCIL
WRITTEN BY: ASSISTANT PCS DIRECTOR NEGRETE
RECOMMENDED BY: PARKS & COMMUNITY SERVICES DIRECTOR CALUBAQUIB APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: RESOLUTION APPROVING A TWO-YEAR LEASE AGREEMENT WITH CENTRAL COAST YMCA FOR USE OF CITY PROPERTY LOCATED AT 37

SUDDEN STREET
RECOMMENDATION:

Adopt a resolution approving a two-year lease agreement with Central Coast YMCA, a corporation, for use of City property located at 37 Sudden Street and authorizing and directing the City Manager to execute the same and any amendments of a non-substantive nature subject to legal approval.

BACKGROUND:

The City owned property at 37 Sudden Street was deeded to the City in 1997 by Jim and Marjorie Peixoto whose interest was to locate and construct two 3-wall handball courts at the rear of the property. As part of the review of the proposed lease, staff reviewed the deed and Resolution No. 101-97 (CM) which accepted the property on behalf of the City and established conditions regarding the property’s recreational use. Pajaro Valley Arts Council (PV Arts) has leased this property since 1997. Resolution No. 158-24 (CM) approved a five-year lease between PV Arts and the City beginning July 1, 2024 through June 30, 2029. In January 2026, PV Arts notified the City that they would be relocating to their property at the Porter Building and would be terminating their lease for the 37 Sudden Street property effective March 1, 2026.

DISCUSSION:

On Friday, April 24, 2026, a Request for Proposals for Leasing of Property at 37 Sudden Street was released. The City’s objective was to find a productive use for the property that meets its full potential to provide the generation of lease revenue while supporting economic development and/or community

2 resources for the City and its residents. Businesses and non-profit organizations were invited to submit a response to the proposal that included a description of the business including statement of qualifications and experience; financial information including proposed fees to be charged to facility users or recipients of services generated at the facility; proposed compensation to the City and financial condition of the organization; target population and demographics to be served; and why their proposal should be considered for the space and how it would benefit the Watsonville community.

Five (5) organizations submitted a response to the proposal and were evaluated on the following criteria:
 Qualifications and credentials
 Proposed use including the quality of proposed use and business plan  Community benefits including the proposers understanding of and contribution to the community
 Ability and capacity to meet the needs of the RFP
 Uniqueness and community-oriented nature of the proposed use  Financial viability of the proposed use
The following were the evaluation results:

1. 93%: Central Coast YMCA

2. 85%: CASA

3. 85% Parents Center, Inc.

4. 82%: Arte del Corazon

5. 78%: Casita del Teatro
The five organizations were invited to participate in an interview to further discuss their proposals, operational plans, and ability to meet the City’s objectives via questions asked. Following the evaluation of the written proposals and interviews, the Central Coast YMCA was selected.

The Central Coast YMCA received the highest evaluation score and demonstrated the strongest ability to meet the City’s objectives identified in the RFP. While each proposal offered unique benefits, several included considerations related to organizational capacity, financial sustainability, or overlap with existing community services. The Central Coast YMCA’s proposal did not present these concerns and provided the strongest overall combination of experience, financial stability, community benefit and operational readiness.

The Central Coast YMCA is a well-established organization with proven history of successfully delivering programs and services to the community. The organization demonstrated strong financial stability and long-term organizational capacity, providing confidence in its ability to sustain operations throughout the lease term. Staff also reviewed the deed and Resolution No. 101-97 (CM) to confirm that the proposed use is consistent with the conditions under which the property was accepted by the City.

Staff’s review found that the proposed lease is consistent with those conditions.

3 CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

Leasing City-owned property to the YMCA to be used as an afterschool homework center, community meeting hub and cultural gathering space is exempt from CEQA under Guidelines Section 15301 (Class 1 – Existing Facilities), because it consists of the leasing of an existing public structure, involving negligible or no expansion of the existing use of the property. The action is also exempt under Section 15061(b)(3), the common sense exemption, because it can be seen with certainty that there is no possibility this action may have a significant effect on the environment.

STRATEGIC PLAN:

Community Engagement & Well-being – Engaging community in programs and events being offered Economic Development – Offering a cultural gathering space for the community Infrastructure & Environment – Collaboration will help maintain City’s facilities Public Safety – Providing youth a safe, positive afterschool space FINANCIAL IMPACT:

The base rent for this lease is $2,000.00 per month or $24,000.00 annually. The monthly rent shall be adjusted annually, every July 1st beginning the first year of the lease and each July 1st thereafter using the rate of April to April in the Consumer Price Index (CPI) for All Urban Consumers San Francisco-OaklandSan Jose, California.  Revenue: 150-681- XXXXXX
ALTERNATIVE ACTION:

The City Council may choose not to approve the execution of this Lease.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

None.

Reso No. (CM)
Meeting Date: 082526 SWZ ______ TV ______ PCS ______
1 RESOLUTION NO. __________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

APPROVING A TWO-YEAR LEASE BETWEEN THE CITY OF

WATSONVILLE AND CENTRAL COAST YMCA, A CORPORATION, FOR
THE USE OF CITY OWNED PROPERTY LOCATED AT 37 SUDDEN

STREET, WATSONVILLE, CALIFORNIA, COMMENCING ON SEPTEMBER 1, 2026, AND ENDING ON AUGUST 31, 2028, AND AUTHORIZING CITY MANAGER TO EXECUTE SAME AND ANY AMENDMENTS OF A NONSUBSTANTIVE NATURE SUBJECT TO LEGAL APPROVAL

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

1. Leasing City-owned property to the YMCA to be used as an afterschool homework center, community meeting hub and cultural gathering space is exempt from CEQA under Guidelines Section 15301 (Class 1 – Existing Facilities), because it consists of the leasing of an existing public structure, involving negligible or no expansion of the existing use of the property. The action is also exempt under Section 15061(b)(3), the common sense exemption, because it can be seen with certainty that there is no possibility this action may have a significant effect on the environment.

2. That the two-year Lease between the City of Watsonville and Central Coast YMCA, a corporation, for the use of City owned property located at 37 Sudden Street, Watsonville, California, commencing on September 1, 2026, and ending on August 31, 2028, a copy of which Lease is attached hereto and incorporated herein by this reference, is hereby approved.

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

COMMERCIAL PROPERTY LEASE AGREEMENT BY AND BETWEEN

CITY OF WATSONVILLE, CALIFORNIA AND CENTRAL COAST YMCA
Thislease agreement (“Lease”) is dated __________________________ and is by and between the City of Watsonville, California, a chartered California municipal corporation (“City”) and Central Coast YMCA, a not for profit corporation (“Lessee”). City and Lessee may be referred to individually as a “Party” or collectively as the “Parties” or the “Parties to this Lease.” The City Manager serves as Contract Administrator for this Lease on behalf of the City Council.

RECITALS:

A. City owns the property at 37 Sudden Street, Watsonville, California, consisting of approximately 1,668 square feet within Emmett Courts Park.

B. City wishes to lease the Property to Lessee.

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

AGREEMENTS:

LEASE PROVISIONS

1. PREMISES AND PROJECT.

1.1 General. City hereby leases to Lessee, and Lessee hires from City, all that portion of that certain improved real property, 37 Sudden Street, Watsonville, California of approximately 1,668 square feet (the “Premises”), located within an approximately .266 acre parcel known as Emmett Courts Park(the “Project”), all as more particularly described or identified in Exhibit A attached hereto and incorporated herein by reference. The Project excludes, and Lessee is the sole owner of, the items identified on the Inventory of Fixtures set forth in Exhibit B attached hereto and incorporated herein by reference.

1.2 Pro Rata Share. Lessee’s pro rata share (“Pro Rata Share”) is percent (100%) which represents the percentage that the rentable area of the Premises bears to the total rentable area of the Project.

2. TERM; COMMENCEMENT DATE.

2.1 Lease Term. The term of this Lease shall be for Two years (the “Initial Term”), commencing at 12:01 am on September 1, 2026 (“Commencement Date”) and ending on August 31, 2028. Lessee shall, at the expiration of the term of this lease, or upon its earlier termination, surrender the Premises in as good condition as it is now at the date of this lease, reasonable wear Docusign Envelope ID: 6CB44FC2-766D-8E61-8178-6305E01FD9F9

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and tear excepted. City shall have the right, upon the termination of the term or upon a breach, to enter the Premises and take possession of it.

2.2 RENT.

2.2.1 Base Rent. Lessee shall pay base rent (“Base Rent”) in the amount of twothousand dollars ($2,000.00) per month. All rent, including Base Rent, shall be paid in lawful money of the United States of America without deduction or offset. Base Rent for initial term shall be payable on the Commencement Date, at a place (or places) as may be designated in writing from time to time by City. The rent shall be adjusted annually, every July 1st beginning the first year of the lease and each July 1st thereafter using the rate of April to April in the Consumer Price Index (CPI) for All Urban Consumers San Francisco-Oakland-San Jose, California. All rents shall be paid by check payable to the City of Watsonville, by delivering or mailing to the City of Watsonville Finance Department, 250 Main Street, Watsonville, California, 95076.

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

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

3. SECURITY DEPOSIT.

Lessee has tendered to City an amount of One Thousand Dollars ($1,000.00) as a security deposit.

City may use these funds as are reasonably necessary to remedy any Lessee breach(s) or default(s) under this Lease, including without limitation in the payment of rent, to repair damages caused by Lessee, or expenses incurred to clean the Premises upon termination of tenancy. If any portion of the security deposit is used towards rent or damages at City’s sole discretion, Lessee agrees to reinstate said total security deposit upon receipt of five (5) days written notice. Any remaining balance of the security deposit shall be returned by City to Lessee at such time after termination of this Lease that all of Lessee’s obligations under this Lease have been fulfilled, reduced by such amounts as may be required by City to remedy defaults on the part of Lessee in the payment of Rent or other obligations of Lessee under this Lease, to repair damage to the Premises, or Project caused by Lessee and to clean the Premises. City may use and co-mingle the security deposit with other funds of City.

Lessee hereby waives the provisions of the California Civil Code section 1950.7, and all other provisions of any laws, now or hereinafter in force, which restricts the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits.

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4. DUTIES OF LESSEE.

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

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

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

5. USE OF PREMISES/COMMON AREAS.

5.1 Permitted Uses. Lessee shall use the Premises for the sole and exclusive purposes of the Central Coast YMCA for afterschool homework center, community meeting hub and cultural gathering space and for no other purpose. Without limiting the foregoing, Lessee agrees not to use or permit use of the Premises for any unlawful purpose, and not to commit or permit any waste or nuisance in or about the Premises. Lessee will not use Premises in a manner that increases the risk of fire, cost of fire insurance or improvements thereon. No unreasonable sign or placard shall be painted, inscribed or placed in or on or about the Premises or Project; and no tree or shrub thereon (if any) shall be destroyed or removed or other waste committed of said Premises or Project. No bicycles, motorcycles, automobiles or other mechanical means of transportation shall be placed anywhere on the Premises or Project except for areas (if any) identified by the City from time to time. No repair, storage, overhaul or modification of any motor vehicle shall take place on or about the Premises or Project. Lessee, at his/her expense, shall keep the Premises in as good condition as it was at the beginning of the term hereof, reasonable wear and tear excepted.

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

5.3 Condition, Use of Premises. At no cost to Lessee, City either has, or shall, supply, furnish, install, finish and deliver in flat white finish with grey ceiling, the Premises, in full compliance with all applicable laws, regulations and building codes applicable to new construction, disregarding variances and grandfathered/grandmothered rights, all at City’s sole cost and expense, and which shall comprise and is defined as the “Base Building”.

5.4 Overloading. Lessee shall not do anything on the Premises that will cause damage to the Premises, or the Project. Lessee shall not suffer or allow the Premises to be used in any manner that will harm or impair the structural strength of the Building nor to suffer or allow to be installed or operated on the Premises, or the Building, any machinery or apparatus whose weight or vibration would harm or impair the structural strength of the Premises or the Building.

Lessee shall not place a load upon the floor or roof of the Premises without the City’s prior written Docusign Envelope ID: 6CB44FC2-766D-8E61-8178-6305E01FD9F9

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consent, which consent may be conditioned on moving by skilled licensed handlers, or which exceeds the load per square foot which such floor or roof was designed to carry.

5.5 Business machines and mechanical equipment used by Lessee which cause vibration or noise that may be transmitted to the Building structure or to any leased space to such a degree as to be reasonably objectionable to the City or to any other tenants in the Building shall be placed and maintained by Lessee at its expense, in settings of cork, rubber, or spring-type vibration eliminators sufficient to eliminate such vibration or noise.

5.6 Common Areas.

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

5.6.2 City shall keep or cause the Common Areas to be kept in a neat, clean, and orderly condition, and shall repair any damage to the facilities thereof, but all Common Area Expenses shall be charged and prorated in the manner hereinafter set forth. “Common Area Expenses” shall include, but not be limited to, all sums expended in connection with the Common Areas for all general maintenance and repairs, resurfacing, painting, restriping, cleaning, sweeping and janitorial services; maintenance and repair of sidewalks, curbs, and Project signs; sprinkler systems, planting and landscaping (if any); lighting and other utilities; directional signs; maintenance and repair of any fire protection systems, lighting systems, storm drainage systems and other utility systems outside of the Premises; all maintenance and repair costs and expenses, except as to cost of replacement of the roof, exterior walls, structural parts of the Premises and structural floor, and pipes and conduits outside the leased Premises in the Project that furnish the leased Premises with various utilities, incurred by the City; personnel to implement such services; real and personal property taxes and assessments on the improvements and land comprising the Project; any governmental imposition or surcharge imposed upon the City or assessed against any portion of the Common Areas; all costs and expense pertaining to any security alarm system for the lessees in the Project (if any); depreciation on maintenance and operating machinery and equipment (if owned) and rental paid for such machinery and equipment (if rented); and adequate public liability and property damage insurance on the Common Areas. In addition, the Common Area Expenses shall include a management fee of ten percent (10%) of the total of all other Common Area Expenses, adjusted from time to time as provided herein. The City may cause any or all of those services to be provided by an independent contractor or contractors.

5.6.3 From and after the Commencement Date, and throughout the term hereof, Lessee shall pay to the City, on the first day of each calendar month, the amount of $0.00 per square Docusign Envelope ID: 6CB44FC2-766D-8E61-8178-6305E01FD9F9

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foot of the Premises, which as of the Commencement Date, equates to $0 per month, as the amount agreed upon by the parties to be Lessee’s share of the Common Area Expenses.

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

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

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

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

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

5.6.9 If in the sole discretion of the City unauthorized persons are using any of the Common Areas by reason of the presence of Lessee in the Premises, Lessee, upon demand of the City, shall enforce such rights against all such unauthorized persons by appropriate proceedings.

Nothing herein shall affect the rights of the City at any time to remove any such unauthorized persons from said areas or to restrain the use of any of said areas by unauthorized persons.

6. MAINTENANCE AND REPAIRS.

6.1 Lessee’s Obligations. Lessee agrees at all times during the term hereof, at its own expense, to repair, replace and maintain in good and tenantable condition the Premises and every Docusign Envelope ID: 6CB44FC2-766D-8E61-8178-6305E01FD9F9

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part thereof and including, without limitation, parking area, driveway, landscaping, roof, walls, glazing, plumbing, utility meters, pipes and conduits, all fixtures, air conditioning equipment and heating equipment, if any, exclusively serving the Premises and other equipment therein, including any equipment installed by Lessee which is part of said system, the storefront or storefronts, all signs, locks and closing devices, and all window sash, casement or frames, door and door frames, floor coverings, including carpeting, terrazzo or other special flooring, and all such items of repair, maintenance, allocation and improvement or reconstruction as may at any time or from time to time be required by a governmental agency having jurisdiction thereof.

Tenant will not place or suffer to be placed or maintained on any exterior door, roof, wall or window of the Leased Premises any sign, awning or canopy, or advertising matter or other thing of any kind, and will not place or maintain or permit, or suffer to be placed or maintained, any decoration, lettering or advertising matter on the glass of any window or door of the Leased Premises without first obtaining Landlord's written approval. In no event shall any: (a) neon, flashing or moving sign(s), or (b) sign( s) which shall interfere with the visibility of any sign, awning, canopy, advertising matter, or decoration of any kind of any other business or occupant of the property of which the Leased Premises are a part, be permitted hereunder. Tenant further agrees to maintain any such sign, awning, canopy, decoration, lettering, advertising matter or other thing as may be approved in good condition and repair at all times. Lessee shall contract with a qualified service company for the monthly maintenance of the air conditioning equipment or heating, ventilating and air conditioning equipment, as the case may be, exclusively serving the Premises, with a copy of the service contract to be furnished to the City upon execution of this Lease and a copy of any subsequent contracts to be furnished from time to time during the term of this Lease provided that, at the City’s sole election, the City may so contract directly with a qualified service company, and Lessee shall promptly reimburse the City for the full cost of same.

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

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

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

6.3 Major Structural Maintenance: City shall be responsible for all major structural maintenance on Premises, including both the interior and exterior of said building, at no cost to the Lessee. Major structural maintenance shall be defined as any repairs costing one thousand dollars ($1,000.00) or more. Examples of major structural maintenance include but are not limited to: painting of building exterior structural repairs involving foundation, exterior wall and bearing walls; and major repair or replacement of failed roof, gutters, downspouts, HVAC system, unexposed plumbing, and electrical, fire and sprinkler system, and fire alarm system.

For all major maintenance that cannot be completed by City and upon approval from City, Lessee shall contract for services, in conformance with City purchasing policies and procedures.

All proposed work shall be approved by City and, such approval shall be timely and not unreasonably withheld. Lessee will be reimbursed by City for direct costs of the approval facility improvements and major maintenance repairs.

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

7. HAZARDOUS MATERIALS.

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

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

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

7.4 Hazardous Materials Defined. The term “Hazardous Material(s)” shall mean any toxic or hazardous substance, material or waste or any pollutant or contaminant or infectious or radioactive material, including but not limited to, those substances, materials or wastes regulated now or in the future under any of the following statutes or regulations and any and all of those substances included within the definitions of “hazardous substances,” “hazardous waste,” “hazardous chemical substance or mixture,” “imminently hazardous chemical substance or mixture,” “ toxic substances,” “hazardous air pollutant,” “toxic pollutant” or “solid waste” in the (a) “CERCLA” or “Superfund” as amended by SARA, 42 U.S.C. Sec. 9601 et seq., (b) RCRA, 42 U.S.C. Sec. 6901 et seq., (c) CWA., 33 U.S.C. Sec. 1251 et seq., (d) CAA, 42 U.S.C. 78401 et seq., (e) TSCA, 15 U.S.C. Sec. 2601 et seq., (f) The Refuse Act of 1899, 33 U.S.C. Sec. 407, (g) OSHA, 29 U.S.C. 651 et seq. (h) Hazardous Materials Transportation Act, 49 U.S.C. Sec. 1801 et seq., (i) USDOT Table (40 CFR Part 302 and amendments) or the EPA Table (40 CFR Part 302 and amendments), (j) California Superfund, Cal. Health & Safety Code Sec. 25300 et Docusign Envelope ID: 6CB44FC2-766D-8E61-8178-6305E01FD9F9

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seq., (k) Cal. Hazardous Waste Control Act, Cal. Health & Safety Code Section 25100 et seq., (l) Porter-Cologne Act, Cal. Water Code Sec. 13000 et seq., (m) Hazardous Waste Disposal Land Use Law, Cal. Health & Safety Code Sec. 25220 et seq., (n) “Proposition 65,” Cal. Health and Safety Code Sec. 25249.5 et seq., (o) Hazardous Substances Underground Storage Tank Law, Cal. Health & Safety Code Sec. 25280 et seq., (p) California Hazardous Substance Act, Cal.

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

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

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

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

7.6 Hazardous Materials Indemnity. Lessee shall indemnify, defend (by counsel reasonably acceptable to City), protect and hold the City harmless from and against any and all claims, liabilities, penalties, forfeitures, losses and/or expenses, including, without limitation, diminution in value of the Premises or Project, damages for the loss or restriction on use of the rentable or usable space or of any amenity of the Premises or Project, damages arising from any adverse impact or marketing of the Premises or Project and sums paid in settlement of claims, response costs, cleanup costs, site assessment costs, attorneys’ fees, consultant and expert fees, judgments, administrative rulings or orders, fines, costs of death of or injury to any person or damage to any property whatsoever (including, without limitation, groundwater, sewer systems and atmosphere), arising from, or caused or resulting, either prior to or during the Lease Term, in whole or in part, directly or indirectly, by the presence or discharge in, on, under or about the Premises or Project by Lessee, Lessee’s agents, employees, licensees or invitees or at Lessee’s direction, of Hazardous Material, or by Lessee’s failure to comply with any Hazardous Materials Law, whether knowingly or by strict liability. Lessee’s indemnification obligations shall include, Docusign Envelope ID: 6CB44FC2-766D-8E61-8178-6305E01FD9F9

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without limitation, and whether foreseeable or unforeseeable, all costs of any required or necessary Hazardous Materials management plan, investigation, repairs, cleanup or detoxification or decontamination of the Premises or Project, and the presence and implementation of any closure, remedial action or other required plans, and shall survive the expiration of or early termination of the Lease Term. For purposes of the indemnity provided herein, any acts or omissions of Lessee or its employees, agents, customers, sublessees, assignees, contractors or subcontractors of Lessee (whether or not they are negligent, intentional, willful or unlawful) shall be strictly attributable to Lessee.

8. UTILITIES.

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

9. ALTERATIONS.

9.1 Alterations. Lessee shall not make any alterations to the Premises without the prior written consent of the City which consent shall not be unreasonably withheld. City shall be deemed to have reasonably withheld or withdrawn consent unless each and every proposed alteration (i) shall not, individually or in the aggregate, lessen the fair market value of the Premises or materially affect the usefulness of the Premises, either for Lessee’s business or the business of potential successor tenants, (ii) be accompanied by all final plans and specifications with any deviation therefrom constituting a separate alteration subject to this Section 10, (iii) be constructed by a California licensed contractor and under the direction of a California licensed architect satisfactory to the City, and (iv) once consented to by the City, shall be completed expeditiously in a good and workmanlike manner, with first class quality materials, and in compliance with all applicable legal and insurance requirements, (v) shall be constructed in strict compliance with the additional conditions set forth in Section 10.4 hereof, and (vi) shall become a “Lessee Improvement” and part of the Premises and subject to this Lease, provided, at the City’s option, Lessee shall remove any such alteration and restore the Premises to their condition prior to the making of same, normal wear and tear excepted, upon the expiration or earlier termination of the term hereof. The City shall exercise its option by 30 days’ notice given no later than 30 days after such expiration or termination and, if Lessee has not so removed and restored within 30 days after the City gives said notice, Lessee shall pay the City upon demand the reasonable rental value of the Premises during the period beginning with the date immediately following said 30 days after the City gives its notice and ending with the date upon which the removal and restoration is completed and the City may, but shall not be obligated to, remove such alteration and restore the Premises and Lessee also shall pay the City its cost of same upon demand.

9.2 Required Alterations. Subject to Section 10.1 above, Lessee shall, at its sole cost, make any alteration, addition, or change to the Premises of any sort, substantial or insubstantial, ordinary or extraordinary, foreseeable or unforeseeable, whether structural or otherwise, as may Docusign Envelope ID: 6CB44FC2-766D-8E61-8178-6305E01FD9F9

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be required by law due to the existence of, or Lessee’s use or occupancy of, the Premises or as a result of Lessee’s application for any permit or governmental approval, provided that the City may elect to make same, in which case Lessee shall reimburse the City promptly upon demand for all costs of the City’s making same.

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

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

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

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

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

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

9.4.5 Lessee shall pay all costs, expenses and liabilities arising out of, in connection with, or by reason of, any alterations, and shall keep the Premises and Project free and clear of all liens, claims and encumbrances in any way arising out of, in connection with, or by reason of, any alterations.

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

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

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

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

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

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

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

10. TAXES.

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

10.2 Assessments and Special Taxes. As a municipal corporation, City’s fee interest in the Project is exempt from the 1% general property tax levy and therefore property taxes will not be levied and will not be passed through to lessee or other tenants of the Project during City’s Docusign Envelope ID: 6CB44FC2-766D-8E61-8178-6305E01FD9F9

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ownership of the Project. However, if and to the extent the Project or portion thereof is subject to special taxes or assessments, Lessee shall pay Lessee’s share of all such assessment and special taxes, if any, (other than possessory interest taxes on Lessee’s leasehold interest which shall be paid 100% by Lessee) which become due and payable to City on or before the later of ten (10) days prior to the delinquency thereof or three (3) days after the date on which Lessee receives a copy of the special tax or assessment bill and notice of City’s determination hereunder.

Lessee’s liability to pay special taxes and assessments shall be prorated on the basis of a three hundred sixty-five (365) day year to account for any fraction or portion of a tax year included in the Lease term at the commencement or expiration of the Lease.

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

11. HOLD HARMLESS/INDEMNIFICATION.

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

11.2 Waiver of Claims. Lessee waives any claims against City for injury to Lessee’s business or any loss of income therefrom, for damage to Lessee’s property, or for injury or death of any person in or about the Premises or the Project, from any cause whatsoever, except to the extent caused by City’s active negligence or willful misconduct.

12. DAMAGE, DESTRUCTION AND TERMINATION.

12.1 Uninsured Risks. If, during the Term of this Lease, the Premises is totally or partially destroyed from a risk not covered by the insurance described in Section 19.2, the City, at its option, may elect to terminate this Lease by giving notice to Lessee or may elect to restore the same. However, as to destruction which was caused by an act or omission of Lessee, its employees, agents, invitees or permittees, Lessee shall reimburse the City the full cost of the restoration of the Premises, and all leasehold improvements therein under any circumstances. If the City elects to restore the Premises, Lessee shall be entitled to a proportionate reduction of rent while such repairs are being made. Such reduction shall be in an amount which bears the same proportion to the Base Rent as the floor area of that portion of Premises which has been damaged or is otherwise unusable by Lessee, bears to the total floor area of the Premises, except that if the damage or destruction is to more than 50% of the square footage of the Premises and Lessee ceases to occupy the Premises, such proportionate reduction shall be 100%.

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12.2 Insured Risks.

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

12.2.2 Notwithstanding any other provision of this Lease, if, at any time during the term of this Lease, the Premises is totally or partially destroyed and (i) the total cost to repair the Premises exceeds One Hundred Thousand Dollars($100,000), or (ii) twenty percent (20%) of the Project is damaged or destroyed (and whether or not any portion of the Premises is also damaged or destroyed), the City may elect to terminate this Lease by written notice to Lessee.

Determination of the extent of damage or destruction and the time for effectuating repair shall be made by the City based upon written appraisals and insurance adjustment reports, and shall be final and binding on the Parties.

12.3 Extent of Obligation. Notwithstanding the foregoing, the City shall not be required to repair, reconstruct, or restore damage or destruction by fire or other cause to any portion of the Premises constructed by or for Lessee, and Lessee shall at its sole cost and expense fully restore or replace its stock in trade, trade fixtures, furniture, furnishings, equipment, and other personal property. Lessee shall commence all such replacement and restoration work promptly following the occurrence of any such damage or destruction, and shall diligently prosecute such work to completion. Lessee hereby waives any statutory rights of termination which may arise by reason of any partial or total destruction of the Premises or any part thereof. Upon termination of the Lease under any of the provisions of this Section 13, the Parties shall be released thereby from any further obligations hereunder except for obligations which, prior to the date of such termination, had already accrued, and except as provided in the following sentence. In the event of such a termination, all proceeds from Lessee’s insurance which pertain to alterations or improvements to the Premises which would otherwise become the property of the City upon expiration or termination of this Lease shall be disbursed and paid to the City.

12.4 Force Majeure/Excusable Delay. Except as provided in this Lease, any act of City or Lessee required by this Lease to be done within a specified time shall be subject to Excusable Delay. Lessee’s obligation to pay Rent, however, is not excused by this Section. “Excusable Delay” means prevention, delay or stoppage due to strikes, lockouts, labor disputes, Acts of God, inability to obtain labor, materials or reasonable substitutes, governmental restrictions, governmental regulation, governmental controls, judicial orders, enemy, or hostile governmental actions, civil commotion, fire or other casualty, and other causes beyond the reasonable control of Lessee or City (excepting, however, City’s or Lessee’s financial inability), which shall excuse the performance by City or Lessee for a period equal to the prevention, delay Docusign Envelope ID: 6CB44FC2-766D-8E61-8178-6305E01FD9F9

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or stoppage, except the obligations imposed with regard to rent to be paid by Lessee pursuant to this Lease. In the event any work performed by Lessee or Lessee’s contractors results in a strike, lockout, and/or labor dispute, the strike, lockout, and/or labor dispute shall not excuse the performance by Lessee of the provisions of this Lease.

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

13. SIGNS.

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

14. ASSIGNMENT AND SUBLETTING.

14.1 City’s Consent Required. Lessee shall not assign this Lease, nor any interest therein, and shall not sublet or encumber the Premises or any part thereof, nor any right or privilege appurtenant thereto, nor allow or permit any other person(s) to occupy or use the Premises, or any portion thereof, without the prior written consent of City, such consent not to be unreasonably delayed, withheld, or denied. This Lease shall be binding upon any permitted assignee or successor of Lessee. Consent by City to one assignment, subletting, occupation or use by another person shall not be deemed to be consent to any subsequent assignment, subletting, occupation or use by another person. No assignment, subletting, or encumbrance by Lessee shall release it from or in any way alter any of Lessee’s obligations under this Lease. Any assignment, subletting, encumbrances, occupation or use contrary to the provisions of this Lease shall be void and shall constitute breach of this Lease. City may assign any of its rights hereunder without notice to Lessee.

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

15. DEFAULTS; REMEDIES.

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

15.1.1 Abandonment of the Premises by Lessee as defined by California Civil Code § 1951.3;
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15.2.1 Failure by Lessee to make any payment of rent or any other payment required to be made by Lessee hereunder, as and when due, where such failure shall continue for a period of ten (10) business days after written notice thereof from City to Lessee. In the event City serves Lessee with a Notice to Pay Rent or Quit pursuant to applicable Unlawful Detainer statutes, such Notice to Pay Rent or Quit shall also constitute the notice required by this subparagraph;

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

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

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

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

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

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

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

16. INTEREST ON PAST-DUE OBLIGATIONS.

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

17. CITY’S ACCESS.

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

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

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

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

18. INSURANCE.

18.1 Lessee Insurance. Lessee’s responsibility for the Premises begins immediately upon the Commencement Date and Lessee, at its sole cost and expense, and at no cost to City, shall provide and maintain in full force and effect during the entire term of this Lease insurance coverage in an amount(s) and in a form acceptable to City as set forth in Exhibit C attached hereto and incorporated herein by reference. Said policies shall be maintained with respect to Lessee’s employees, if any, and all vehicles operated on the Premises. The policies shall include Docusign Envelope ID: 6CB44FC2-766D-8E61-8178-6305E01FD9F9

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the required endorsements, certificates of insurance and coverage verifications as described in Exhibit C. Lessee also agrees to secure renter’s liability insurance.

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

19. DISPUTE RESOLUTION.

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

19.2 The Parties may agree on one mediator. If they cannot agree on one mediator, the Party demanding mediation shall request the Superior Court of Santa Cruz County to appoint a mediator. The mediation meeting shall not exceed one day (eight (8) hours). The Parties may agree to extend the time allowed for mediation under this Lease.

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

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

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

20. PAYMENTS/PARTIAL PAYMENTS.

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

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

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

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22. NON-DISCRIMINATION.

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

23. CONFLICT OF INTEREST.

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

24. MEMORANDUM OF LEASE.

Lessee shall not record this Lease or a memorandum thereof, or any other reference to this Lease, without the prior written consent of the City. Lessee, upon the request of the City, shall execute and acknowledge a Memorandum of Lease for recording in the official records of Santa Cruz County. Upon termination or expiration of this Lease, Lessee shall execute and record a quitclaim deed as to its leasehold interest.

25. ESTOPPEL CERTIFICATE.

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

26. LIENS.

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

27. VACATING.

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

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28. ABANDONMENT.

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

29. PROPRIETARY AND GOVERNMENTAL ROLES; ACTIONS BY CITY.

Except where clearly and expressly provided otherwise in this Lease, the capacity of the City in this Lease shall be as owner and lessor of property only (“Proprietary Capacity”), and any obligations or restrictions imposed by this Lease on the City shall be limited to that capacity and shall not relate to, constitute a waiver of, supersede or otherwise limit or affect its governmental capacities, including enacting laws, inspecting structures, reviewing and issuing permits, and all of the other legislative and administrative or enforcement functions pursuant to federal, state or local law (“Governmental Capacity”). When acting in its Proprietary Capacity, discretionary actions may be undertaken by the City Manager or other designees as designated by the City Manager to the extent otherwise provided for in this Lease. In addition, nothing in this Lease shall supersede or waive any discretionary or regulatory approvals required to be obtained from the City under applicable law, nor guarantee that the City, in its Governmental Capacity, will grant any particular request for a license, permit or other regulatory approval. Lessee understands that the City may grant or deny such request in its sole discretion and may impose such terms and conditions as it deems consistent with that discretion and applicable laws.

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

31. NOTICES.

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

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

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President and CEO
Central Coast YMCA
80 Garden Court, Suite 200
Monterey, CA 93940
Notices may be served upon Lessee in person or by first class mail or by certified mail to Lessee whether or not said mailing is accepted by Lessee. If notice is sent via facsimile, a signed, hard copy of the material shall also be mailed. The workday the facsimile was sent shall control the date notice was deemed given if there is a facsimile machine generated document on the date of transmission. A facsimile transmitted after 1:00 P.M. on a Friday shall be deemed to have been transmitted on the following Monday. These addresses shall be used for service of process.

32. TIME.

Time shall be of the essence in this Lease.

33. MISREPRESENTATIONS.

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

34. AMENDMENTS.

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

35. INDEPENDENT LEGAL ADVICE.

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

36. SERVICE CHARGE.

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

37. SIGNING AUTHORITY.

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

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38. CHANGE OF LOCKS.

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

39. CAPTIONS/RECITALS.

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

40. REPAIRS.

Except as expressly provided in this Lease, City shall have no obligation to repair or maintain the Premises or any alterations thereto or facilities placed therein. Lessee expressly waives the benefit of any statute now or hereinafter in effect which would otherwise afford Lessee the right to make repairs at City’s expense or to terminate this Lease because of City’s failure to keep Premises in good order, condition and repair. Lessee shall not call on City to make any improvements or repairs to said property of any kind whatsoever.

41. SURRENDER OF LEASE NOT MERGER.

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

42. INTEGRATED DOCUMENT; AMENDMENTS.

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

43. WAIVER.

Waiver by City of one or more conditions of performance or any breach or condition under this Lease shall not be construed as a waiver(s) of any other condition of performance or subsequent breaches or conditions. The subsequent acceptance by a Party of the performance of any obligation or duty by another Party shall not be deemed to be a waiver of any term or condition of this Lease. The exercise of any remedy, right, option or privilege hereunder by City shall not preclude City from exercising the same or any and all other remedies, rights, options and Docusign Envelope ID: 6CB44FC2-766D-8E61-8178-6305E01FD9F9

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privileges hereunder and City’s failure to exercise any remedy, right, option or privilege at law or equity, or otherwise which City may have, shall not be construed as a waiver.

44. INTERPRETATIONS.

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

45. SEVERABILITY CLAUSE.

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

46. GOVERNING LAW.

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

47. VENUE.

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

48. COMPLIANCE WITH LAWS.

Lessee shall not use the Premises or permit anything to be done in or about the Premises which will in any way conflict with any law, statute, zoning restriction, ordinance or governmental law or rule, regulation, or requirement, including any Hazardous Materials laws or regulations, of any duly constituted public authorities now in force or which may hereafter be enacted or promulgated, or which will subject City to any liability for injury to any person or property by reason of any business operation being conducted in or about the Premises. To the extent required due to Lessee’s specific use of the Premises, alterations of the Premises made by Lessee, or as a result of Lessee’s application for permits or authorizations, Lessee shall, at its sole cost and expense, promptly comply with all applicable laws, statutes and ordinances, governmental rules, regulations, orders, permits, licenses, approvals, authorizations, federal and state disability laws, and other requirements including the Americans with Disabilities Act (“ADA”) of 1990 (42 U.S.C. 12101 et seq.), together with any amendment thereto or regulations promulgated under any of the foregoing, and any state or local ordinances or codes enacted pursuant thereto, and with all requirements of any board or fire insurance underwriters or other similar bodies, now or hereafter constituted, relating to or affecting the condition, use, or occupancy of the Premises by Lessee, any improvements or alterations made by, on behalf of, or for Lessee, or any other Lessee acts or omissions. The final judgment of any court of competent jurisdiction or the admission of Lessee in any action against Lessee, whether City be a party thereto or not, that Lessee has violated any laws shall be conclusive of that fact as between City and Lessee. Lessee, within ten (10) days after receipt, shall provide City with copies of any Docusign Envelope ID: 6CB44FC2-766D-8E61-8178-6305E01FD9F9

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notices it receives regarding a material violation or alleged material violation of any Laws.

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

49. COUNTERPARTS; ELECTRONIC SIGNATURES.

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

50. ACCESSIBILITY; DISABILITY LAWS.

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

50.2 “A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or 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.”

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

51. OFAC COMPLIANCE.

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

SHALL DEFEND, INDEMNIFY AND HOLD HARMLESS CITY FROM AND AGAINST

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

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52. NO BROKERAGE.

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

Lessee shall indemnify and defend City from and against any claims made by Lessee’s Agent or any other person or entity purporting to represent Lessee in this transaction for any finder’s fee, brokerage fee, commission or other payment claiming through Lessee or its affiliates with respect to the execution of this Lease or the consummation of the transaction contemplated hereby.
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CITY OF WATSONVILLE, CALIFORNIA, a chartered California municipal corporation “CITY"
Dated:

By:
________________________________
Tamara Vides
City Manager
ATTEST:
________________________________
Irwin Ortiz
City Clerk
APPROVED AS TO FORM:
________________________________
Samantha W. Zutler
City Attorney
“LESSEE”
CENTRAL COAST YMCA, a corporation
Dated:

By:

Name: Amy Grames
Title: President and CEO
Local Address: 80 Garden Court Ste 200, Monterey, CA 93940 Email Address: [email protected]
Telephone: ( 831 ) 757-4633
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COMMERCIAL PROPERTY LEASE AGREEMENT BY AND BETWEEN

CITY OF WATSONVILLE, CALIFORNIA
AND

CENTRAL COAST YMCA

EXHIBIT A

DESCRIPTION/SITE PLAN OF PREMISES

AND PROJECT
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COMMERCIAL PROPERTY LEASE AGREEMENT

BY AND BETWEEN

CITY OF WATSONVILLE, CALIFORNIA
AND

CENTRAL COAST YMCA

EXHIBIT B

INVENTORY OF FIXTURES
The City shall provide the premises without any furniture, fixtures or equipment of any kind.

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COMMERCIAL PROPERTY LEASE AGREEMENT BY AND BETWEEN

CITY OF WATSONVILLE, CALIFORNIA AND

CENTRAL COAST YMCA

EXHIBIT C

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

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

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

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

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

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

B. OTHER INSURANCE PROVISIONS:

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

1. Additional Insured Status: The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Lessee including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can Docusign Envelope ID: 6CB44FC2-766D-8E61-8178-6305E01FD9F9

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be provided in the form of an endorsement to the Lessee’s insurance (at least as broad as ISO Form CG 20 10).

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

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

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

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

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

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

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

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

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1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, August 25, 2026
TO: CITY COUNCIL
WRITTEN BY: POLICE CAPTAIN RADICH
RECOMMENDED BY: POLICE CHIEF SHAB
APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: RESOLUTION APPROVING SCHOOL COMMUNITY POLICE OFFICER

PROGRAM AGREEMENT AND MEMORANDUM OF UNDERSTANDING

WITH PAJARO VALLEY UNIFIED SCHOOL DISTRICT FOR SCHOOL YEAR 2026-2027
RECOMMENDATION:

Adopt a resolution approving the School Community Policing Officer Program Agreement between the City of Watsonville and the Pajaro Valley Unified School District for school community policing officer services at Watsonville High School and Pajaro Valley High School for the school year 2026-2027 and authorizing and directing the City Manager to execute same and any amendments thereto, and approving the associated Memorandum of Understanding and authorizing and directing the City Manager and Police Chief to execute same.

BACKGROUND:

The City collaborated with the Pajaro Valley Unified School District in 1994 to develop and implement the School Community Policing Officer Program. During the first three years of the program, it was financed by the United States Department of Justice – COPS office. Over time and after the grant funding terminated the District and City continued to enter into an agreement to place one full-time Police Officer at Watsonville High School. The original Resolution 5-94 (CM) was approved by City Council on January 11, 1994.

The School Community Policing Officer Program has been in effect at Watsonville High School since 1994 and at Pajaro Valley High School since 2004, with the exception of the School Year 2020-2021. The school district renewed the program agreement during School Year 2021-2022, and each year thereafter and wishes to do the same for School Year 2026-2027.

2 DISCUSSION:

The Pajaro Valley Unified School District wishes to renew the School Community Policing Officer Program Agreement for the 2026-2027 School Year. Due to the Police Department’s ongoing shortage of full-time Police Officers, the agreement for School Year 2026-2027 was modified from the previous school year’s agreement to remove the inclusion of a full-time Police Officer to be assigned to Watsonville High School.

The agreement only includes staffing Watsonville High School and Pajaro Valley High School using parttime Police Officers, both of whom were employed in the same School Resource Officer roles during School Year 2025-2026. Staffing the agreement with part-time Police Officers offers a large cost savings to the school district. In comparison, the amount of the School Year 2026-2027 agreement is not to exceed $152,053, while the previous agreement for School Year 2025-2026 was not to exceed $291,630, which included one full-time Police Officer position.

On July 15, 2026, the Pajaro Valley Unified School District Board of Trustees approved this School Community Policing Officer Program Agreement and Memorandum of Understanding for School Year 2026-2027 during their regular board meeting.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

These agreements are exempt from the California Environmental Quality Act (“CEQA”) because the contract and memorandum of understanding do not qualify as project and will not result in a direct or reasonably foreseeable indirect physical change in the environment. (CEQA Guidelines, §§15060, subds. (c)(2), (c)(3), 15061, subd. (b)(3).)
STRATEGIC PLAN:

Public Safety
FINANCIAL IMPACT:

If approved, the Pajaro Valley Unified School District would reimburse the City of Watsonville for the two (2) part-time Police Officers and associated program costs, in an amount not to exceed $152,053 for the School Year 2026-2027.

ALTERNATIVE ACTION:

The Council may choose not to participate in the program. If so, the Police Department would respond to calls for police service at Watsonville High School and Pajaro Valley High School on a priority basis, in line with all other police calls within the City. Collaboration with the schools and community-based organizations in building positive relationships with youth and developing strategies for the reduction of school-based violence and drug use would not be as focused or structured. Lastly, Police Officers would still respond to calls for service at both high schools, but the City would not have the cost reimbursement benefit the proposed agreement provides.

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27.docx
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None.

Reso No. (CM)
Meeting Date: 082526 SWZ ______ TV ______ WPD ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPROVING THE SCHOOL COMMUNITY POLICING

OFFICER PROGRAM AGREEMENT BETWEEN THE CITY OF

WATSONVILLE AND THE PAJARO VALLEY UNIFIED SCHOOL

DISTRICT FOR SCHOOL COMMUNITY POLICING OFFICER SERVICES

AT WATSONVILLE HIGH SCHOOL AND PAJARO VALLEY HIGH
SCHOOL FOR THE SCHOOL YEAR 2026-2027 AND AUTHORIZING

AND DIRECTING THE CITY MANAGER TO EXECUTE SAME AND ANY

AMENDMENTS THERETO, AND APPROVING THE ASSOCIATED

MEMORANDUM OF UNDERSTANDING AND AUTHORIZING AND

DIRECTING THE CITY MANAGER AND POLICE CHIEF TO EXECUTE
SAME
WHEREAS, since 1994, the City of Watsonville and the Pajaro Valley Unified School District have partnered to have a School Community Policing Officer Program at Watsonville High School, and added Pajaro Valley High School to that program in 2004.

The program’s foundation is centered to having a Police Officer assigned to the school campuses for the safety of the students, teachers and staff; WHEREAS, both the City of Watsonville and the Pajaro Valley Unified School District wish to continue that partnership and enter into a new Agreement and Memorandum of Understanding for School Year 2026-2027.

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

1. These agreements are exempt from the California Environmental Quality Act (“CEQA”) because the contract and memorandum of understanding do not qualify as a project and will not result in a direct or reasonably foreseeable indirect physical change in the environment. (CEQA Guidelines, §§15060, subds. (c)(2), (c)(3), 15061, subd. (b)(3).)

2. That the School Community Policing Officer Program Agreement between the City of Watsonville and the Pajaro Valley Unified School District to provide one partPage 607 of 674 Reso No. (CM)
Meeting Date: 082526 2
time Police Officer to be assigned to Watsonville High School, and one part-time Police Officer to be assigned to Pajaro Valley High School for School Resource Officer Services during School Year 2026-2027, in an amount the Pajaro Valley Unified School District will reimburse the City of Watsonville that is not to exceed $152,053, a copy of which Agreement is attached hereto and incorporated herein by this reference, is hereby approved.

3. The City Manager is hereby authorized and directed to execute said Agreement for and on behalf of the City of Watsonville, and any amendments, approved by the City Manager and the City Attorney.

4. That the Memorandum of Understanding between the City of Watsonville’s Police Department and the Pajaro Valley Unified School District for School Resource Officer Services, a copy of which is attached hereto and incorporated herein by this reference, is hereby approved.

5. The City Manager and Police Chief are hereby authorized and directed to execute said Memorandum of Understanding for and on behalf of the City of Watsonville. ************************************

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1 SCHOOL COMMUNITY POLICING OFFICER PROGRAM

AGREEMENT
THIS AGREEMENT is made by and between the City of Watsonville, a municipal corporation, hereinafter called “City,” and the Pajaro Valley Unified School District, hereinafter called “District.” City and District are collectively referred to hereinafter as the “Parties”.

Table of Contents

1. RESPONSIBILITIES OF THE CITY. ............................. 2

2. RESPONSIBILITIES OF DISTRICT. ............................. 3

3. METHOD OF PAYMENT. ........................................ 4

4. TERM OF AGREEMENT. ........................................ 4

5. ASSIGNMENT. ............................................... 5

6. MUTUAL INDEMNIFICATION. ................................... 5

7. INDEPENDENT CONTRACTOR. ................................... 6

8. PROOF OF INSURANCE. ....................................... 6

9. MODIFICATION OF AGREEMENT. ................................ 7

10. LAW GOVERNING. ............................................ 7

11. ENTIRE AGREEMENT. ......................................... 7

12. NOTICES.................................................... 7

WITNESSETH
WHEREAS, both City and District wish to provide two
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2 school-community policing officers: one (1) based at Watsonville High School, and one (1) based at Pajaro Valley High School; and the District has agreed to reimburse the City in the amount not to exceed One Hundred Fifty-Two Thousand and Fifty-Three Dollars ($152,053) from August 10, 2026 to June 4, 2027, and City agrees to provide one (1) part-time Police Officer assigned to Watsonville High School, 250 East Beach Street, Watsonville, California. An additional one (1) part-time Police Officer will be assigned to Pajaro Valley High School, 500 Harkins Slough Road, Watsonville, California.

WHEREAS, it is necessary for the parties hereto to
delineate their responsibilities with respect to the services provided herein and to one another.

NOW, THEREFORE, for and in consideration of the covenants herein contained, the parties hereto agree as follows:

1. RESPONSIBILITIES OF THE CITY.

City agrees to undertake certain activities during the term of this Agreement as follows:
(a) To employ and assign one (1) part-time time sworn Police Officer for a period of one school year commencing August 10, 2026 to June 4, 2027, to Watsonville High School, and employee and assign one part-time sworn Police Officer for a period of one school year commencing August 10, 2026 to June 4, 2027 to Pajaro Valley High School, both in an effort to provide a safe school environment on campus,
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3 maintain order on campus and areas adjacent to campus; (b) To work with District partners in the delivery of law enforcement-related prevention activities, including
school-community policing strategies, and gang-awareness; (c) To participate in and support the District’s School Attendance Review Board and serve as a liaison between
school district and local police department;
(d) To support the District in the improvement of the
School Average Daily Attendance (ADA) rate and reduction of the Truancy rate;
(e) To investigate crimes that occur on campus;
(f) To investigate crimes near the campus that involve
students and are related to their attendance at the school; (g) To properly equip, train, supervise, and pay all salary and benefits of, said Police Officers, in an amount not to exceed One Hundred Fifty-Two Thousand and Fifty-Three Dollars ($152,053); and
(h) To provide District with bi-monthly invoices at least thirty (30) days in advance of the date payment is due.

2. RESPONSIBILITIES OF DISTRICT.

District agrees to undertake certain activities during the term of this Agreement as follows:
(a) To coordinate all services of the assigned Police
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4 (b) To accept the City's determination of the (2) sworn Police Officers to assign to the District, provided,
however, that District may participate in the selection process and provide input to the Chief of Police concerning the assigned Police Officers.
(c) To designate a District employee to work directly with City's Chief of Police, or designee, and assigned Police Officers.
(d) To provide training the District has identified as
needed training for the sworn Police Officers. The
associated training costs, along with wages, if outside of the calendar school year, shall be covered by the District.

3. METHOD OF PAYMENT.

At least thirty (30) days in advance of the commencement of the term of this Agreement and before the anniversary date thereafter, City shall furnish to District a statement of the amount due for reimbursement during the upcoming year. The amount for this Agreement shall not exceed One Hundred FiftyTwo Thousand and Fifty-Three Dollars ($152,053). District shall pay City within forty-five (45) days of the date of each bimonthly invoice issued by City.

4. TERM OF AGREEMENT.

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5 This Agreement shall remain in effect unless cancelled by either party within sixty (60) days of District’s receipt of the amount due for reimbursement as stated in Section 3 entitled Method of Payment. In the event this Agreement is terminated due to lack of funds, City shall not be required to provide the services herein and shall not be entitled to reimbursement for services performed after the date of termination.

5. ASSIGNMENT.

Neither party shall assign this Agreement without the prior written consent of the other.

6. MUTUAL INDEMNIFICATION.
(a) District shall defend, indemnify and save harmless the City, its officers, agents and employees from any and all claims, demands, damages, costs, expenses, or liability occasioned by the negligent performance or attempted negligent performance of the provisions hereof, including but not limited to any negligent act or omission to act on the part of District or its agents, officers, or employees, except that this subparagraph shall not apply to the sole negligence or willful misconduct of City.
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6 penses, or liability occasioned by the negligent performance of the provisions hereof by City, including but not limited to any negligent act or omission to act on the part of City or its agents, officers or employees, except that this subparagraph shall not apply to the sole negligence or willful misconduct of District.

7. INDEPENDENT CONTRACTOR.

The Parties will be acting in an independent capacity and not as agents, employees, partners, or joint ventures of one another. City's employees are not employees of the District and are not entitled to any of the rights, benefits or privileges of District employees including, but not limited to, medical or worker's compensation insurance.

8. PROOF OF INSURANCE.

Without limiting the indemnification of either party to this Agreement, each party shall maintain or cause to be maintained the following insurance coverage: (I) a policy of commercial general liability with limits of liability not less than one million dollars ($1,000,000) per occurrence, (II) a policy of workers compensation providing statutory coverage and (III) such other insurance or self-insurance as shall be necessary to insure it against any claim or claims for damages arising Docusign Envelope ID: D03502B9-4FFC-8DAA-839F-C25F5AE2E23E

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7 out of the Agreement. Upon request, each party to this agreement shall provide a Certificate of Insurance certifying that coverage as required herein has been obtained. The requirements of this section may be satisfied by the provision of similar coverage through a self-insurance program.

9. MODIFICATION OF AGREEMENT.

This Agreement may be modified only by a written amendment signed by both parties hereto.

10. LAW GOVERNING.

The laws of the State of California shall govern this
Agreement. Any suit brought by either party against the other arising out of the performance of this Agreement, shall be filed and maintained in the Superior or Municipal Court for the County of Santa Cruz, California. The prevailing party in any action to enforce the terms of this Agreement shall be entitled to the costs of suit and attorney fees.

11. ENTIRE AGREEMENT.

This Agreement represents the entire understanding of the parties as to these matters, contained herein. No prior oral or written understanding shall be of any force or effect with respect to these matters covered hereunder.

12. NOTICES.

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

CITY: DISTRICT:

City Clerk’s Office Superintendent – Pajaro Valley
City of Watsonville Unified School District
275 Main Street, 4th Floor 294 Green Valley Road
Watsonville CA 95076 Watsonville CA 95076
(831) 768-3040 (831) 786-2135
IN WITNESS WHEREOF, the City and District have caused this Agreement to be
executed this ________ day of ___________________, 2026.

CITY OF WATSONVILLE PAJARO VALLEY UNIFIED

SCHOOL DISTRICT
BY:_________________________ BY:________________________ Tamara Vides Dr. Heather Contreras
City Manager Superintendent of Schools
ATTEST:
________________________________
Irwin I. Ortiz, City Clerk
APPROVED AS TO FORM:
__________________________________
Samantha W. Zutler, City Attorney
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9 Attachment A

MEMORANDUM OF UNDERSTANDING
I. Purpose
The purpose of this Memorandum of Understanding (“MOU”) is to provide clear guidelines to ensure that the City of Watsonville (City) and Pajaro Valley Unified School District (District) have a shared understanding of the role and responsibilities of the School Resource Officer (“SRO”).

The SRO is an employee of the City and contracted by District for the school year of 2026-2027 as a component of school’s overall safety plan. The SRO’s role within the school environment is to promote a safer environment and foster a positive relationship between youth and law enforcement.

The SRO will conduct criminal investigations when necessary and assist District in promoting safe schools and provide a law enforcement resource should serious incidents take place at the school. It is not the SRO’s role to enforce school discipline or to punish students.

SRO involvement in a school-based infraction shall be limited to criminal incidents or conduct posing a serious and immediate threat of injury to an individual within the school community.

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10 It is the District’s responsibility is to administer school discipline. School-based infractions should not be addressed using justice-system intervention.

The District will maintain clear, direct, and effective communication with SRO, City Chief of Police or other designees that may be assigned to provide services.

II. Services to be Provided by City
The SRO provides a specialized service (Law Enforcement) specifically to the school’s students, staff, administration, and facilities which are part of the services provided by the District to the school’s students and parents. Part-time SRO’s will normally be scheduled to work five and one-half (5 ½) hours per school day, and twenty-seven and one-half (27 ½) hours per week, of a full five (5) day, Monday through Friday school week. The parttime SRO’s normal work schedule will either known as the “early SRO shift” from 8:15am to 1:45pm, or “late SRO shift” from 10:15am to 3:45 pm, when the District is in regular session.

Both SRO’s would normally work from 8:15am to 1:45pm on Fridays, since the both Watsonville High School (WHS) and Pajaro Valley High School (PVHS) have minimum days on Fridays. The SRO’s will work with the Principals of their assigned schools to determine which schedule best fits the needs of their particular school.

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11 Due to CalPERS Retire Annuitant regulations, part-time SRO’s can only work up to a maximum of nine hundred sixty (960) hours per fiscal year. Due to City regulations, part-time employees can only work up to a maximum twenty-nine (29) hours per seven (7) day, Saturday through Friday, work week, and fifty-eight (58) hours per bi-weekly pay period.

The SRO’s purpose and role is to promote a safe, efficient, and beneficial learning environment for District through:

1. Establishing and maintaining strong interpersonal relationships with students, staff and District administration;

2. Maintaining high visibility, open communication and impactful interactions as a means of empowering staff to teach effectively in a safe learning environment;

3. Provide presentations of relevant information, materials and trainings to students, parents, staff and administration, as a means of empowering all to make educated, confident, and well-planned decisions;

4. Maintaining clear, direct, and effective communications between the City and District.

A. As a representative of the City, the SRO will maintain a professional appearance to include:

1. Well kept, cleaned, and pressed class “B” uniform or an agreed upon school attire.

2. Clean, maintained, and operable duty equipment:

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12 a. Duty gear
b. Patrol vehicle

3. Adherence to the City’s grooming standards.

B. As a representative of the City, the SRO will maintain his/her responsibilities to the City which include but are not limited to:

1. Attending necessary and/or required trainings (California State POST required certifications, Officer required trainings and additional courses related to SRO duties, training updates and continued education, District identified training related to the SRO position);

2. Attending SRO meetings (as decided by City Chief of Police or designee) for purposes of maintaining communication, training and relevant information for District;

3. Attend required City Operational meetings;

4. The SRO may be pulled away or reassigned from his/her duties as SRO without notice to the District in extreme circumstances such as public emergencies, disasters, or critical incidents.

C. School Safety Coordination with District

1. The SRO will work directly with Principal and District to:
a. Address safety concerns on campus;
b. Address criminal activities/concerns and conduct appropriate investigations; Docusign Envelope ID: D03502B9-4FFC-8DAA-839F-C25F5AE2E23E

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13 c. Actively participate in meetings to address individual student needs and interventions.

2. Campus Safety and Security Checks
The SRO will conduct routine campus security checks to include:
a. Foot and vehicle patrol;
b. Bathroom checks;
c. Monitor parking lots;
d. Depending on their assigned part-time shift, maintain presence and high visibility during all morning student drop-offs and afternoon pick-ups;
e. Maintain communications via school’s portable hand pack radios;
f. Provide first aid and emergency service as needed.

III. Staffing After-Hour Events
SRO duties, of the kind performed by the SRO in their normal course of duty, at events sponsored or sanctioned by District, typically falling outside the hours of 8:15am to 1:45pm OR 10:15am to 3:45pm from Monday to Friday, are referred to herein as “after-hour events”.

A. Scheduling and Compensation
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14 1. The SRO’s regular working hours may be adjusted on a situational basis with the approval of the City Chief of Police, or designee. These adjustments may be to attend District sponsored or sanctioned events, requiring the
presence of a law enforcement officer.

2. All requests for SRO staffing of after-hour events shall be submitted in writing to the City at least two (2)
weeks (14 calendar days) prior to the date the after-hour event is scheduled to take place. District shall indicate if the SRO is required to wear a uniform for the after-hour event. The SRO may then plan accordingly and adjust his/her work schedule to accommodate District’s request if the assigned SRO so chooses.

3. If the SRO elects not to adjust his/her work hours, the after-hour event request will be forwarded to other sworn officers to consider working additional work hours. The District shall pay the City the actual costs for providing the services.

4. City will notify District at least one (1) week (7 calendar days) prior to the date of the scheduled after-hour event if an Officer has elected to staff the after-hour event. An Officer is not guaranteed to staff after-hour events as it depends on their decision to work additional hours.

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Memorandum of Understanding (MOU) between Pajaro Valley Unified School District (PVUSD) and Watsonville Police Department (WPD) regarding School Resource Officers (SRO).

I. Shared Purpose and Commitment
This Memorandum of Understanding reflects a shared commitment between PVUSD and WPD to create a safe, supportive, and thriving school environment where all students—especially students of color and those from marginalized communities—feel valued, respected, and connected.

We affirm that safety is cultivated not solely through enforcement, but through strong relationships, trust, and care. This MOU outlines how School Resource Officers (SROs ) work collaboratively with school staff to nurture a climate of dignity, healing, and opportunity.

II. Guiding Principles that Center Relationships, Wellbeing, and Belonging

1. Purpose of the Agreement
● Strengthen school safety by prioritizing supportive relationships and community trust. ● Engage in positive partnerships between students, staff, families, and SROs. ● Promote student wellness through collaborative, trauma-informed, and culturally responsive practices.
● Establish a restorative, relationship-based model that integrates SROs into the broader ecosystem of student care.

2. Restorative Practices as the Foundation
● Conflicts and harm will be addressed through inclusive and restorative processes that honor voice, responsibility, and relationship repair.
● SROs will participate in these practices as allies.
● Custodial arrests are not the primary function of SRO’s, but when applicable, any student or staff taken into custody should be treated with dignity.

III. Roles as Partners in Community
Partner Relationship-Centered Contributions
SROs Sworn law enforcement on campus who build relationships with students, model positive behavior, and respond to safety needs with empathy and care.

Educators and
Administrators
Provide leadership on school culture, restorative discipline, and inclusive practices.

Law Enforcement
Agency
Supports SROs with training, supervision, and a commitment to equity-informed policing.
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School District Facilitates shared values, oversight, and community input.

SROs do not handle school discipline or student conduct violations that are best addressed by educators or mental health professionals. They serve as connectors, mentors, and protectors in times of true safety concern. It is not the role of the SROs to engage in enforcement of school discipline, including but not limited to, behaviors related to:
● Dress code violations
● Tardiness or period absences
● Classroom behavior
● Cell phone use
● Any responsibility assigned to the supervisory role of a school administrator under Education Code.

IV. Role of the SRO
Job duties of the SRO shall not include the handling of student code of conduct violations or routine student disciplinary matters that should be addressed by school administrators, or conduct that would be better addressed by mental health professionals.

School Resource Officer (SRO): A sworn law enforcement officer assigned to a school campus on a full- or part-time basis who is specially trained to work with youth and in school settings Restorative Practices as the Foundation
● Participate and engage in community and relationship-building activities on assigned campuses such as:
○ Participate in community-building and restorative circles ○ Use affective language with students, staff, and parents/caretakers. ● Conflict addressed through inclusive, relationship-focused processes ● SROs act as allies
Permitted Activities:
● Provide emergency assistance and support in crisis situations. ● Participate in restorative and community building activities, such as those noted above. ● Serve as a resource to school staff for law-related education or prevention. ● Participating in threat assessments should be in collaboration with school-based teams. ● SRO in collaboration with the school administration and mental health professionals can refer to services for support through the law enforcement agency (Caminos Hacia Al Exito, Project ASCEND, MERT/CARE Team/County Mental Health Liaison).
● SRO can refer to District support services (Counselor or other community based agencies that work with the school district).
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● Respond and investigate criminal acts on campus. The SROs serve as responders to active threats of physical harm and in situations that cannot be safely addressed by trained educators or mental health professionals.

Prohibited Activities:
● Participating in classroom management.
● Interrogating students about school infractions that are not potential crimes. ● Carrying out administrative searches unless there is reasonable suspicion of criminal activity which causes a safety concern.
● SROs shall not engage in school-based discipline, including citations to students. ○ Exceptions:
■ There is an immediate and credible threat to the safety of students, staff, or campus.
■ Victimized student, or their parent/guardian, press charges. ■ Brandishing a knife.
■ Possession of an explosive.
■ Possession of a firearm.
■ Sales of any controlled substance.
■ Sexual Assault and Child Sexual Abuse Material (CSAM) ■ Adolescent dating violence (domestic violence)
■ A referral is made by administration following restorative intervention.

V. Training Requirements / Foundations for Effective Practice Training Rooted in Understanding and Growth
SROs will be selected for their character, communication skills, and desire to work with youth. They will engage in meaningful preparation that helps them build relationships, understand diverse experiences, and respond with compassion.

SROs shall not discriminate against or treat any person differently based on race, color, ancestry, nationality, national origin, immigration status, ethnic group identification, ethnicity, age, religion, marital status, pregnancy, parental status, physical or mental disability, sex, sexual orientation, gender, gender identity, gender expression, or genetic information; a perception of one or more of such characteristics; or association with a person or group with one or more of these actual or perceived characteristics.

All SROs assigned to PVUSD campuses must complete basic entry-level training required for all sworn personnel. In addition to law enforcement requirements, the District will ensure the following trainings occur:
● California POST-certified School Resource Officer course (40 hours) 3 Docusign Envelope ID: D03502B9-4FFC-8DAA-839F-C25F5AE2E23E

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● Connecting Youth and Communities with Law Enforcement ○ Part 1: Contemporary issues, active listening, and implicit bias ○ Part 2: Adolescent brain development and trauma-informed responses ○ Part 3: De-escalation and rapport building
● Cultural Awareness and Diversity Overview
● Anti-Bias Training for Law Enforcement
● De-Escalation Strategies and Techniques
● Conflict and Dispute Resolution
● Implicit Bias
● The LGBTQ+ Community
● Disability Awareness and Legal Protections for Students with IEPs or 504 Plans ● FERPA and Student Privacy Laws
● California Education Code Overview
PVUSD will provide annual orientation on district policies and student services.

VI. Supervision, Accountability and Reflection
We are committed to listening, learning, and improving together. The effectiveness of this partnership will be assessed not only by safety data, but by student and community experiences. ● SROs shall collaborate with district staff and use positive, restorative approaches per Penal Code 13651.
● SROs shall use de-escalation tactics in compliance with Gov. Code 7286. ● Law Enforcement Supervision: SROs remain under supervision of their law enforcement agency (WPD).
● School Collaboration: SROs collaborate with the school principal and designated staff. If a student is to be questioned, searched, detained, or cited by an SRO, school staff must be present and parent/guardian will be notified.
● Documentation of enforcement interactions: SRO enforcement contacts will be documented in the District’s Student Information System (Synergy) by school administration. The Superintendent or designee will be informed of interactions that result in a physical search, detention, or citation.
● Reporting Concerns: PVUSD will designate a point of contact to receive concerns or feedback.

In addition, individuals with concerns about an experience with or action of the SRO can file a complaint using the Uniform Complaint Procedure (UCP) outlined on the PVUSD Human Resources website. The UCP is a standardized process for addressing complaints related to specific state and federal education laws and regulations in California. Following this process will ensure the complaint is sent to the appropriate district and school level staff. 4 Docusign Envelope ID: D03502B9-4FFC-8DAA-839F-C25F5AE2E23E

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VII. Data Collection & Evaluation
The Superintendent or designee shall periodically report to the Board of Education disaggregated data on student interactions with SROs.

Annual SRO Review:

To evaluate effectiveness and guide continuous improvement, there will be an annual report to the Board of Education. The report will review:
● Disaggregated data (race, gender, disability status) from the Student Information System (school administration), this may include the number of arrests and referrals for prosecution, the number of reports provided to the school or district regarding student misconduct, or other actions taken by SROs with respect to individual students or others on campus. ● Number of students who successfully complete restorative justice diversion programs (Caminos Hacio el Exito; Project ASCEND)
Student Privacy:

SROs shall not access or release student records without written parent/guardian or adult student permission unless legally required. (Ed Code 49076; 34 CFR 99.1) VIII. Equity and Inclusion in Every Interaction
All SROs will uphold the dignity and rights of all students. Discrimination of any kind is prohibited and actively countered through training and accountability.

IX. Terms of Agreement
● This MOU is effective upon signing and remains valid for one year, subject to annual renewal. ● Amendments may be proposed in writing by any party.
● Any party may terminate this MOU with 30 days' written notice.

X. Signatures
Superintendent
Pajaro Valley Unified School District
Name: Dr. Heather Contreras
Signature: ________________________
Date: ____________________________
City Manager
City of Watsonville
Name: Tamara Vides
Signature: __________________________
Date: ________________________
Chief of Police
Watsonville Police Department
Name: Chief Brian Shab
Signature: ________________________
Date: ____________________________
5 Docusign Envelope ID: D03502B9-4FFC-8DAA-839F-C25F5AE2E23E 8/10/2026 | 7:29 AM PDT
8/10/2026 | 9:32 PM PDT

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, August 25, 2026
TO: CITY COUNCIL
WRITTEN BY: Fiscal Manager Maldonado
RECOMMENDED BY: POLICE CHIEF SHAB
APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: RESOLUTION ACCEPTING AND APPROPRIATING THE FY 2025 EDWARD BYRNE JUSTICE GRANT PROGRAM, IN THE AMOUNT OF $22,285
RECOMMENDATION:

Staff recommends that the City Council adopt a resolution authorizing the City Manager to accept the United States Department of Justice, Bureau of Justice Assistance, for the Edward Byrne Memorial Justice Assistance Grant Program FY 2025 in the amount of $22,285 to fund crime analysis software, and to execute all required documents, future amendments, if any, and appropriate the funds to the grant budget.

BACKGROUND/DISCUSSION:

The Edward Byrne Memorial Justice Assistance Grant (JAG) Program is the primary provider of federal criminal justice funding to states and units of local government. The Bureau of Justice Assistance (BJA) recognizes that many state and local criminal justice systems currently face challenging fiscal environments and an important, cost-effective way to relieve those pressures is to share or leverage resources through cooperation among federal, state, and local law enforcement.

JAG awards are based on a statutory formula and applicants are limited to units of local government appearing on the FY 2025 JAG Allocations List. The City of Watsonville’s allocation is $22,285.

Program Areas
JAG funds may be used for to hire additional personnel and/or purchase equipment, supplies, contractual support, training, technical assistance, and information systems for criminal justice, including for any one or more of the following program areas:

2 • Law enforcement programs
• Prosecution and court programs
• Prevention and education programs
• Corrections and community corrections programs
• Drug treatment and enforcement programs
• Planning, evaluation, and technology improvement programs • Crime victim and witness programs (other than compensation) • Mental health programs and related law enforcement and correction programs, including behavioral programs and crisis intervention teams
• Implementation of state crisis intervention court proceedings and related programs or initiatives The Watsonville Police Department (WPD) is proposing using the grant funds to continue funding crime analysis software. Crime analysis has become an essential tool in law enforcement efforts to enhance public safety, identify emerging trends, allocate resources and plan crime prevention strategies. The software will increase the effectiveness of the strategies and help the crime analyst with gathering crime data, pattern analysis, crime mapping, predictive analytics and with disseminating reports to the officers in order to respond more swiftly and appropriately to emergent public safety issues.

Staff recommends City Council approval in the acceptance of the United States Department of Justice, Bureau of Justice Assistance, for the Edward Byrne Memorial Justice Assistance Grant Program for FY 2025, in the amount of $22,285 to continue funding crime analysis software.

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 STRATEGIC PLAN:

Public Safety
FINANCIAL IMPACT:

3 The FY 2025 Edward Byrne Memorial Justice Assistance Grant, in the amount of $22,285, 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.

Reso No. (CM)
Meeting Date: 082526 SWZ ______ TV ______ Police ______ 1 RESOLUTION NO. _________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE AUTHORIZING AND DIRECTING THE CITY MANAGER

ON BEHALF OF THE CITY OF WATSONVILLE TO ACCEPT THE UNITED

STATES DEPARTMENT OF JUSTICE, BUREAU OF JUSTICE

ASSISTANCE, FOR THE EDWARD BYRNE MEMORIAL JUSTICE
ASSISTANCE GRANT PROGRAM FOR FISCAL YEAR 2025, IN THE
AMOUNT OF $22,285 TO FUND CRIME ANALYSIS SOFTWARE, TO

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

APPROPRIATING SUCH FUNDS TO THE SPECIAL GRANTS FUND
(0260)
WHEREAS, the Edward Byrne Memorial Justice Assistance Grant (“JAG”) Program is the primary provider of federal criminal justice funding to states and units of local government; and
WHEREAS, cities funded by the JAG Program are eligible to receive funding for specific purpose areas such as: law enforcement programs, prosecution and court programs, including indigent defense, prevention and education programs, corrections and community corrections programs, drug treatment and enforcement programs, planning, evaluation and technology improvement programs, crime victim and witness programs (other than compensation), and mental health programs and related law enforcement and correction programs, including behavioral programs and crisis intervention teams; and
WHEREAS, the grant to be accepted is to fund crime analysis software; and WHEREAS, the City Council of the City of Watsonville, a municipal corporation of the State of California, wishes to accept for FY 2025 the United States Department of Justice, Bureau of Justice Assistance, Edward Byrne Memorial Justice Assistance Grant Program, in the amount of $22,285.

Reso No. ______ (CM)
Meeting Date: 082526
2 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.

2. That the City Manager of the City of Watsonville, on behalf of the City of Watsonville, is authorized and directed to accept the United States Department of Justice, Bureau of Justice Assistance, Edward Byrne Memorial Justice Assistance Grant Program for FY 2025, in the amount of $22,285 to fund crime analysis software.

3. That the City Manager of the City of Watsonville, is authorized and directed to execute in the name of the City of Watsonville, all documents required by the United States Department of Justice, Bureau of Justice, for the JAG Program, and any amendments thereto, as well as any necessary documents.

4. That the City Manager is authorized and directed to appropriate the $22,285 to the Special Grants Fund [0260].
************************************

1 Reso No. ______ (CM)
Meeting Date: 082526 SWZ ______ TV ______ CC ______
RESOLUTION NO. (CM)

A RESOLUTION OF THE CITY OF WATSONVILLE APPOINTING AHTZIRI

CARRANZA TO THE CITY OF WATSONVILLE PLANNING COMMISSION [DISTRICT 2]
WHEREAS, Section 906 of the City Charter established a seven-member Planning Commission with specific powers and duties; and WHEREAS, Section 902 of the Charter of the City of Watsonville authorizes each member of the Council to appoint one member to each Commission subject to approval by resolution of the Council adopted by at least four (4) affirmative votes; and WHEREAS, Brando Sencion resigned from his seat on the Planning Commission effective July 1, 2026; and
WHEREAS, Council Member Quiroz-Carter has nominated Ahtziri Carranza to fill the vacancy and serve the remainder of the unexpired term, ending December 2028.

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

1. Adopting a Resolution appointing a member to the Planning Commission 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 Council Member Quiroz-Carter hereby nominates Ahtziri Carranza for appointment to the Planning Commission (expires December 2028), representing District 2.

3. That the Council approves such appointment.

2 Reso No. (CM)
Meeting Date: 082526

4. That the City Clerk is hereby directed to transmit a copy of this resolution to the newly appointed member and to the Secretary of the Planning Commission. ********************************

From: [email protected]
To: cityclerk
Subject: Online Form Submittal: Application for Appointment to a Commission Date: Sunday, June 28, 2026 8:51:43 PM
Application for Appointment to a Commission
To be considered for more than one commission, please specify on your application.

Upon receipt, your application for appointment will be routed to the Council Member representing the District in which the vacancy exists. If a Council Member is interested in nominating you for appointment, the Council Member will contact you and discuss the appointment.

You must be a resident of the City of Watsonville to qualify for an appointment.

Please note that applications are continuously accepted to the City of Watsonville.

The Commission you select may or may not indicate there is a vacancy. Your application will remain on file for one year from the date of submission. During the year, your application may be considered for unanticipated vacancies.

Thank you for your interest in City government.

Commission Planning Commission
Commission Planning Commission

NAME (FIRST,

MIDDLE, LAST)
Ahtziri Carranza
ADDRESS Watsonville CA 95076

TELEPHONE
NUMBER

EMAIL ADDRESS

LENGTH OF

RESIDENCE IN AREA
26 years

PREVIOUS COMMISSION OR BOARD EXPERIENCE

COMMISSION OR

BOARD SERVED
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EDUCATION
INSTITUTION California State University, Monterey Bay
MAJOR Environmental Studies
DEGREE B.A. in Environmental Studies
YEAR 2021
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WORK/VOLUNTEER EXPERIENCE:

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Statement of
Qualification
I am interested in becoming a member of the Planning
Commission as it aligns with my career path, and desire to become an active member of the community. I was born and raised, and currently live in Watsonville. One of the pivotal issues that shaped me was my concern of pesticide use near schools and residential areas. How would that impact people’s health? How did that impact my health and that of those around me? How will this continue to impact future generations? and, Why is this allowed?
As I navigated school and pondered what I wanted to focus on as a career path, Watsonville was always on my foremind. I knew that whatever knowledge base I gained in higher education, I wanted to pour back into my community. In university, I discovered the world of planning. The way we design and build our cities has a direct correlation on everyday lives, health impacts, opportunities for people, access, and general well-being of all. It is also very, historically, racist in practice. Policies from the 1960s continue to harm communities today. Either because of a highway dividing a city, poor infrastructure, lack of accessible transport, and intentional divide between classes and ethnicities. I understood how this all tied into my life-long concern, and determined that I wanted to pursue a career in planning to help bridge the gap left by discriminatory practices to achieve an equitable Watsonville for all residents, either by being part of a commission, working for the city or volunteer work.

Through my community engagement, education, and
encouragement at Ecology Action I have deepened my
understanding as a community member on how planning has impacted me, and members of the community in the realm of transportation planning. Being able to join the planning commission would allow me to share these perspectives with other commissioners to help inform aligned decisions that aid the community and help flourish it, not harm it. Everyone should have the right to access basic necessities and feel fulfilled in the communities they live in - a philosophy I live by and want to help

establish in the city of Watsonville.

Cover Letter/Resume Ahtziri_Carranza_Resume.2026 (1).pdf ACKNOWLEDGEMENT:

I understand that this application is a public document, its contents will be disclosed upon request, and any misrepresentation or deliberate omission of a material fact in this application may be justification for refusal or termination of appointment.

If appointed, I agree to:

1. Attend meetings regularly and devote the time necessary to fulfill my duties as a member. I understand that 3 consecutive absences could lead to my removal from the Commission.

2. Comply with conflict-of-interest laws of the State of California and submit the Form 700, “Statement of Economic Interests,” within 30 days of assuming office, annually thereafter, and upon the completion of a member's term of office. More information is available at http://www.fppc.ca.gov/Form700.html CERTIFICATION Declaration
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Ahtziri Carranza
/ https://www.linkedin.com/in/ahtziricarranza/
Education
Bachelor of Arts in Environmental Studies (ENSTU), Concentration: Sustainable Communities with a minor in Environmental Health Policy, magna cum laude
California State University, Monterey Bay (CSUMB) 2017-2021 Experience
Ecology Action: Transportation Planning Program Specialist August 2025- Current ● Train, mentor, and support program interns and volunteers to ensure effective onboarding, skill development, and high‑quality program delivery.
● Assist with onboarding for new projects, including budget setup, tracking, and implementation to maintain alignment with program goals and funding requirements. ● Prepare and deliver presentations for City Council and other public audiences, translating complex transportation planning concepts into clear, accessible information. ● Maintain continuity of coordinator responsibilities, ensuring consistent execution of outreach, planning, data analysis, and grant compliance tasks.

Ecology Action: Transportation Planning Program Coordinator July 2024-August 2025 Santa Cruz and Watsonville, CA
● Deliver bilingual (English/Spanish) outreach programs for community members and stakeholders ● Coordinate with the senior planner to maintain clear communication with funders, transit agencies, consultants, community‑based organizations, and media partners, ensuring adherence to planning processes and regulatory requirements.
● Collect, evaluate, and synthesize program data—including surveys, photos, and videos—to support grant reporting, performance measurement, and continuous program improvement. ● Contribute to grant development, contract administration, and compliance monitoring for ATP, CARB, and other‑funded programs, ensuring timely delivery of budgets, reports, and project milestones. ● Assist in developing short‑ and long‑term plans and strategies for citywide and regional active transportation systems and planning initiatives.
● Strengthen community engagement by collaborating with local stakeholders, employers, and partner organizations to expand program reach and accessibility. ● Apply core transportation planning principles related to safety, transit and active transportation systems, and environmental and social impacts.
● Partner with marketing staff to produce Spanish‑language translations and culturally responsive outreach materials.
● Manage project workflows in Asana, designing new systems to track grants, deliverables, and program timelines.

City of Watsonville: Nature Center Capstone Research Jan. 2021 – Dec. 2021 Watsonville, CA
● Conducted a literature review on the benefits of nature centers ● Interviewed nature centers that serve similar populations like that of Watsonville to gain inspiration for the upgraded nature center Watsonville is aiming to build ● Finished a report summarizing the interviews as well as including suggestions for exhibits and next steps for the Watsonville Public Works Department
Climate Adaptation Planning in an Agricultural Community Summer 2020 Watsonville,CA
● Analyzed community survey data gathered from the agricultural community of Watsonville regarding how they have been affected by climate change.
● Conducted a literature review on how farmworkers were being affected by rising heat ● All the information gathered was then written up as a journal article and presented several times Skills
● English & Spanish (native speaker)
● German A2
● MS Excel, MS Word, MS Excel, MS
PowerPoint
● Beginner at GIS, StoryMap

1 Reso No. (CM)
Meeting Date: 082526 SWZ ______ TV ______ CC ______
RESOLUTION NO. (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE APPOINTING NANCI C. VELASCO TO THE CITY OF WATSONVILLE

PERSONNEL COMMISSION
[DISTRICT 3]
WHEREAS, Section 908 of the City Charter established a seven member Personnel Commission with specific powers and duties; and WHEREAS, Section 902 of the Charter of the City of Watsonville authorizes each member of the Council to appoint one member to each City board or commission subject to approval by resolution of the Council adopted by at least four (4) affirmative votes.

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

1. Appointing a member to the City’s Personnel Commission 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 Council member Orozco hereby nominates Nanci C. Velasco for appointment to the Personnel Commission (expires December 2026), representing District 3.

3. That the Council hereby approves such appointment.

4. That the City Clerk is hereby directed to transmit a copy of this resolution to the newly appointed member and to the Secretary of the Personnel Commission. ********************************

Reso No. (CM)
Meeting Date: 082526 SWZ ______ TV ______ CC ______
1 RESOLUTION NO. (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE APPOINTING COUNCIL MEMBER MARIA OROZCO TO

THE COMMUNITY ACTION BOARD OF SANTA CRUZ COUNTY, INC
BOARD OF DIRECTORS FOR A TERM COMMENCING ON AUGUST 26,
2026, AND ENDING DECEMBER 8, 2026
WHEREAS, Pursuant to California Government Code §12751, the CAB Board of Directors shall consist of 15 directors, or as outlined by the California Community Services Department (CSD), representing the low-income, public, and private sectors; and
WHEREAS, CAB may change the number of directors by amending its By-Laws, assuring that one-third of the directors represent the public sector and at least one-third represent the low-income sector, with the remaining seats filled by members of business, industry, labor, religious, human services, education, or other major groups and interests in the community; and
WHEREAS, the term of service for Public Officials and their alternates shall be the same as the term of the public office from which their board membership derives.

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

1. That Council Member Maria Orozco, a member of the City Council of the City of Watsonville, is hereby appointed to the Community Action Board of Santa Cruz County, Inc. Board of Directors for a term commencing on August 26, 2026, and ending December 8, 2026.

2. That the City Clerk is hereby directed to transmit a copy of this resolution to the Community Action Board of Santa Cruz County, Inc. **********************************

1 Ord. No. ______ (CM)
Reference: Ord. No. 1403-20 (Amend)
Meeting Date: 052626 SWZ ______ TV ______ Finance ______ ORDINANCE NO. Introduction (CM)
AN ORDINANCE OF THE CITY OF WATSONVILLE AMENDING TITLE 3 (FINANCE) CHAPTER 5 (PURCHASING PROCEDURES) OF THE

WATSONVILLE MUNICIPAL CODE

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. FINDINGS
The City Council of the City of Watsonville finds that the above referenced recitals are true and correct and incorporated into this Ordinance.

SECTION 2. ENACTMENT
Sections 3-5.170 (Contract changes), 3-5.196 (Contract execution), 3-5.210 (Exemptions from Chapter 5), 3.5-410 (Bids – Notice of invitation and submission) of Chapter 5 (Purchasing Procedures) of Title 3 (Finance) are amended as shown in Exhibit A, attached hereto and incorporated herein by reference. Additions are reflected by underline, and deletions are reflected by strikethrough.

SECTION 3. ENVIRONMENTAL REVIEW
Enacting amendments to this Ordinance 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 enacting said amendments is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment as it is an administrative change in the limitations on campaign funding contributions.

SECTION 4. SEVERABILITY

2 Ord. No. ______ (CM)
Reference: Ord. No. 1403-20 (Amend)
Meeting Date: 052626
If any section, subsection, sentence, clause or phrase or word of this Ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.

SECTION 5. PUBLICATION
This ordinance shall be published in the Watsonville Register-Pajaronian and/or Santa Cruz Sentinel in compliance with the provisions of the Charter of the City of Watsonville.

SECTION 6. EFFECTIVE DATE
This Ordinance shall take effect thirty (30) days after passage by the City Council. *****************************

3 Ord. No. ______ (CM)
Reference: Ord. No. 1403-20 (Amend)
Meeting Date: 052626

EXHIBIT A
3-5.170 Contract changes.

All contract changes (e.g., amendments to contracts, amended contracts, addenda, additive or deductive change orders, changes in scope of work or changes to contract expiration date) shall reasonably relate to the scope of the original contract and be based on post-award information that requires modification of the contract based on unforeseen conditions or by mutual agreement of the parties and must return to the original signing authority for approval unless:
(a) The cumulative result of changes pushes the total contract or purchase order amount into the next level approver’s authority; i.e., if the cumulative result of the changes goes from under One Hundred Thousand and no/100ths ($100,000.00) Dollars to over One Hundred Thousand and no/100ths ($100,000.00) Dollars, it must be approved by Council, even if the original contract was not required to be approved by the Council.
(b) The City Manager may approve monetary changes to contracts or purchase orders previously approved by the Council under the following circumstances: 1) the total amount of funds added to the contract does not exceed $99,999; and 2) the Director of Finance or her designee determines the additional funds are available in the budget and the request complies with the procedural requirements of this Code and any applicable City policies or procedures. Any changes to contracts or purchase orders in excess of $99,999, cumulative, require Council approval, regardless of amount. (c) The City Manager may approve extensions of the end date of contracts or purchase orders previously approved by Council. All other non-monetary contract amendments to contracts originally approved by Council shall require Council approval. (d) By resolution adopted in advance, the Council may delegate to the City Manager authority to approve and execute specific contracts, including public works contracts subject to Watsonville Charter Section 1117 and other provisions of this Code, without

4 Ord. No. ______ (CM)
Reference: Ord. No. 1403-20 (Amend)
Meeting Date: 052626
further Council action. Any such resolution shall identify the contract(s) covered and a maximum dollar amount. A public works contract approved under delegated authority must still meet applicable bidding, notice, and security requirements. The City Manager shall report contracts approved under delegated authority to the Council at the next regular City Council meeting. The Council does not delegate its authority to reject all bids and perform work with City employees or to dispense with bidding for urgent items. (b e) An emergency requires that action be taken immediately, in which case approval by the signing authority should occur at the next possible date. 3-5.196 Contract execution.
(a) Only the City Manager and, in the City Manager’s absence, the Assistant or Deputy City Manager authorized by the City Manager, may sign contracts on behalf of the City. No other employee is authorized to sign a contract binding the City, and may make such contract voidable.
(b) Before a contract is signed by the City Manager or placed on a City Council agenda for approval, the contract must:
(1) Include appropriate insurance and indemnification provisions reviewed by and approved by the City’s Risk Manager or City Attorney; (2) Be approved as to form by the City Attorney;
(3) Be approved as to budget availability and purchasing procedural compliance by the Finance Director; and
(4) Be executed by the other party (except in the instance of a public entity). 3-5.210 Exemptions from Chapter 5.

Purchases are exempt from the requirements of this chapter if:
(a) An emergency requires that an order be placed with the nearest available source of supply, service or equipment;

5 Ord. No. ______ (CM)
Reference: Ord. No. 1403-20 (Amend)
Meeting Date: 052626
(b) Reasonable attempts have been made to obtain informal bids or proposals, and less than three (3) proposals can be obtained.
(c) Equipment, supplies or nonprofessional services are unique, available only from one (1) source, or sought to match existing equipment or supplies already in use (also known as a sole source purchase);
(d) Equipment, supplies or nonprofessional services have been uniformly adopted or otherwise standardized in the City. In this case, evidence for the standardization shall be documented and maintained as a public record and approved by the Purchasing Officer before the purchase and then at least once every five (5) years; (e) The purchase is made cooperatively with one (1) or more other units of government through cooperative purchasing programs substantially the same as the City of Watsonville’s and the purchase is consistent with the terms of a written agreement between the City and the vendor;
(f) When in the opinion of the Purchasing Officer the equipment, supplies and nonprofessional services are available from a vendor who has been selected as the lowest bidder within the prior twelve (12) months by another public entity using competitive bidding procedures substantially the same as those used by the City for the acquisition of such equipment or supplies (sometimes called “piggybacking”); (g) The purchase of used supplies or equipment;
(h) Contracts for professional witness services if the purpose of such contracts is to provide for professional advice services or testimony relating to an existing or probable judicial proceeding in which the City is or may become a party, including contracts for special investigative services for law enforcement purposes; (i) Agreements negotiated and/or prepared by the City Attorney or special counsel in connection with the settlement of a dispute, claim, or matter of litigation or threatened litigation;
(j) Contracts to commission original works of art, and for fine art or entertainment;

6 Ord. No. ______ (CM)
Reference: Ord. No. 1403-20 (Amend)
Meeting Date: 052626
(k) The purchase of books, magazines, newspapers, subscriptions, online library reference services, film, videos, and assorted materials for which contracts by competitive bid solicitation are not practical;
(l) Specialized seminar, training, and educational classes; (m) Contracts for election services;
(n) Contracts for legal services;
(o) Franchise agreements; and
(p) Contracts for procuring and maintaining insurance policies. 3-5.320 Quotations—Submission in writing—Recordkeeping.

Written quotations, received via mailed letter, fax or email or submitted electronically are required, and a record of open market quotations and orders shall be kept in accordance with the City’s record retention policy after the receipt of such quotations. 3-5.410 Bids—Notice of invitation and submission.
(a) Notices inviting bids or requesting proposals shall include, but not be limited to, the following:
(1) General description of the equipment, supplies or nonprofessional services to be purchased;
(2) Location where bid form blanks and specifications may be obtained; (3) Time and place assigned for the opening of sealed bids; (4) Type and character of bidder’s security required, if any; (5) Location and deadline for submission of bids;
(6) Form of contract; and
(7) Insurance requirements.
(b) Notices inviting bids or requesting proposals shall be published on the City’s web site, eBid or other recognized bidding sites or list serves.

7 Ord. No. ______ (CM)
Reference: Ord. No. 1403-20 (Amend)
Meeting Date: 052626
(c) Sealed bids or proposals shall be identified as such and submitted by the closing date and time.

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, August 25, 2026
TO: CITY COUNCIL
RECOMMENDED BY: COMMUNITY DEVELOPMENT DIRECTOR ORBACH
APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: ACTIONS PERTAINING TO COMPLIANCE WITH PEREMPTORY WRIT OF MANDATE TO SET ASIDE APPROVALS FOR A 21-UNIT TOWNHOME
DEVELOPMENT PROJECT LOCATED AT 547 AIRPORT BOULEVARD (APN:
015-321-01); AND FINDING THE ACTIONS EXEMPT FROM REVIEW

UNDER THE CALIFORNIA ENVIRONMENT QUALITY ACT
RECOMMENDATION:

1. Adopt a Resolution rescinding Resolution Nos. 236-21 (CM), 237-21 (CM), 238-21 (CM) and 239- 21 (CM) to set aside approvals for a 21-unit townhome project located at 547 Airport Boulevard;

2. Introduce, by title only, and waive further reading of an Ordinance repealing Ordinance No. 1420- 21 (CM).

BACKGROUND:

On August 24, 2021, the Watsonville City Council took the following actions in connection with approving the development of a proposed 21-unit townhome project (the “Project”) on an approximately 1.57-acre site located at 547 Airport Boulevard (APN: 015-321-01) in the City of Watsonville (the “Project Site”):
(1) Adopted Resolution No. 236-21 (CM) adopting a Mitigated Negative Declaration and Mitigation, Monitoring, and Reporting Program for the Project; (2) Adopted Resolution No. 237-21 (CM) amending the Watsonville 2005 General Plan to redesignate the Project Site from (I) Industrial to (R-HD) High-Density Residential, and directing changes to be made on the General Plan Land Use Diagram; (3) Introduced Ordinance No. 1420-21 (CM) approving a rezoning to establish a Planned Development Overlay District and a change of zone from (IP) Industrial Park to (RM-3/PD) for the Project Site and directing changes to be made on the Zoning Map;

2 (4) Adopted Resolution No. 238-21 (CM) approving a Special Use Permit with Design Review, Specific Development Plan, and Environmental Review for the Project; and (5) Adopted Resolution No. 239-21 (CM) approving a Tentative Tract Map for the Project.

On September 14, 2021, the City Council passed Ordinance No. 1420-21 (CM).

The Project’s approval was subsequently challenged under the California Environmental Quality Act (“CEQA”) and the State Aeronautics Act by means of a Petition for Writ of Mandate and Complaint for Declaratory Relief (“Petition”) filed on September 14, 2021, in Santa Cruz County Superior Court (“Court”), Case No. 21CV02343, Watsonville Pilots Association v. City of Watsonville, et al.

On August 21, 2023, the approved permits and tract map automatically expired by their terms.

On July 6, 2026, the Court entered a Judgment granting the Petition and issued a Peremptory Writ of Mandate, ordering that within 60 days (i.e. no later than September 8, 2026), the City rescind the Mitigated Negative Declaration and all related approvals for the Project, including the General Plan Amendment, rezoning, special use permit, design review, specific development plan, and tentative tract map. The Writ was served on the City on July 9, 2026.

DISCUSSION:

The Court has directed the City to set aside any and all approvals related to the Project, including Ordinance No. 1420-21 (Change of Zone) and Resolution Nos. 236-21 (Mitigated Negative Declaration), 237-21 (General Plan Amendment), 238-21 (Special Use Permit with Design Review, Specific Development Plan, and Environmental Review), and 239-21 (Tentative Tract Map).

The Court has ordered these actions be taken within 60 days of service of the Writ on the City, so no later than September 8, 2026. Adoption of the attached resolutions and ordinance complies with the Court’s order to set aside Project approvals.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

Rescinding the Project approvals is exempt from California Environmental Quality Act (CEQA) pursuant to the common sense exemption set forth in CEQA Guidelines Section 15061(b)(3), because rescission is a purely administrative action involving no physical change to the environment. Therefore, it can be seen with certainty that there is no possibility that this action will have a significant effect on the environment.

FINANCIAL IMPACT:

None.

ALTERNATIVE ACTION:

None. The recommended action is necessary to comply with the Court’s order.

3 ATTACHMENTS AND/OR REFERENCES (IF ANY):

1. Copy of Peremptory Writ of Mandate (Court Order)

ELECTRONICALLY RECEIVED
6/23/2026 4:03 PM
William Parkin (SBN 139718) WITTWER PARKIN
P.O. Box 2197 Aptos, California 95001-2197
Telephone: (831)429-4055 [email protected]
Elise Cossart-Daly (SBN 299024) COSSART-DALY LAW, A.P.C. 1117 State Street Santa Barbara, California 93101 Telephone: 805.380.8408
[email protected]
10 Attorneys for Petitioner and Plaintiff, WATSONVILLE PILOTS ASSOCIATION

SUPERIOR COURT OF THE STATE OF CALIFORNIA

FOR THE COUNTY OF SANTA CRUZ
Case No.: 21CV02343

PEREMPTORY WRIT OF MANDAMUS
[CEQA CASE]
Action Filed: September 23, 2021
Dept.: 10
Judge: Hon. Timothy Schmal
WATSONVILLE PILOTS ASSOCIATION, non-profit corporation, Petitioner and Plaintiff, 17 VS

CITY OF WATSONVILLE, CITY COUNCIL
19 OF THE CITY OF WATSONVILLE, and DOES through 15,
Respondents,
EVE ORTIZ, RAOUL ORTIZ, and DOES 16
through 30,
Real Parties in Interest
[PROPOSED] PREEMPTORY WRIT OF MANDATE
11 12
13 14
15 16
18 20
21 22
23 24
25 26
27 28
Attachment 1

[PROPOSED] PREEMPTORY WRIT OF MANDATE
2 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 TO THE CITY OF WATSONVILLE AND THE CITY COUNCIL OF THE CITY OF WATSONVILLE, and each of you:

Judgment having been entered in this proceeding, ordering that a peremptory writ of mandate be issued from this Court,
YOU ARE HEREBY COMMANDED, immediately on service of this writ:

1. To set aside any and all approvals related to the development of 21 townhomes on a 1.57+ acre site located at 547 Airport Boulevard (APN 015-321-01) (“Project”), including, but not limited to, Ordinance No. 1420-21 and Resolutions 236-21, 237-21, 238-21 and 239-21, adopting a Mitigated Negative Declaration, and approving a General Plan Map Amendment, Zoning Map Amendment, Planned Development, Major Subdivision (Tentative Map), Special Use Permit with Design Review and Specific Development Plan (PP2018-11).

2. To comply with the Court’s Judgment and the Court’s Final Ruling; Statement of Decision (“Ruling”) entered herein, and to follow all applicable law, statutes, and regulations, including but not limited to, complying with the California Environmental Quality Act (“CEQA”), the CEQA Guidelines, and the State Aeronautics Act (“SAA”). Thereafter, if you undertake reconsideration of any of the actions required to be set aside, such reconsideration must be in accordance with this Court’s Judgment and Ruling.

3. These proceedings are hereby remanded to you to proceed in accordance with this Court’s Judgment and Ruling, and to take any further action specially enjoined on you by law to implement the Court’s Judgment and Ruling.

4. You are prohibited from implementing the approvals related to the Project described above, or basing any action on or engaging in any activity pursuant to those approvals, unless and until the Project complies with CEQA, the CEQA Guidelines, and the SAA, any reconsideration complies with the Judgment and Ruling, this Peremptory Writ of Mandamus is discharged, and the Injunction as set forth in the Judgment is lifted.

4. The Court reserves jurisdiction over your proceedings by way of return to the Peremptory Writ of Mandamus, and reserves jurisdiction to determine compliance with this Writ of Mandamus, and this Court’s Judgment and Ruling. You are required to file a return to Attachment 1

the Peremptory Writ of Mandamus within 60 days of service of the Peremptory Writ, showing that you have set aside the Projectin its entirety. Thereafter, if you undertake reconsideration of any of the actions required to be set aside, you must file further return to this Peremptory Writ of Mandamus demonstrating continued compliance with this Peremptory Writ of Mandamus. In the event of such reconsideration of the Project, the Court retains jurisdiction until the Court has determined that you have complied with this Court's Judgment and Ruling, and until such time that this Peremptory Writ of Mandamus is discharged by way of further return following notice to all parties and reasonable time for the filing of any written

LERK OF THE SUPERIOR COURT
Summers, Madisson
objections with the Court.
12 Dated: July 6, 2026
10 SORT
11 13
14 15 Approved as to Form:
16 17
18 By: Kevin D. Siegel 19 Attorney for Respondents City of Watsonville and City Council of the City of Watsonville 20 21
22 23 By: Taylor Pohle
25 Attorney for Real Parties in Interest Eve Ortiz and Raoul Ortiz 24 26
27 28
[PROPOSED] PREEMPTORY WRIT OF MANDATE
Attachment 1

PROOF OF SERVICE
1 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 William Parkin (SBN 139718)

WITTWER PARKIN
P.O. Box 2197
Aptos, California 95001-2197
Telephone: (831) 429-4055
[email protected]
Elise Cossart-Daly (SBN 299024)
COSSART-DALY LAW, A.P.C.
1117 State Street
Santa Barbara, California 93101
Telephone: 805.380.8408
[email protected]
Attorneys for Petitioner and Plaintiff,

WATSONVILLE PILOTS ASSOCIATION

SUPERIOR COURT OF THE STATE OF CALIFORNIA

FOR THE COUNTY OF SANTA CRUZ
WATSONVILLE PILOTS ASSOCIATION, a
non-profit corporation,
Petitioner and Plaintiff,
vs.

CITY OF WATSONVILLE, CITY COUNCIL
OF THE CITY OF WATSONVILLE, and
DOES 1 through 15,
Respondents,
EVE ORTIZ, RAOUL ORTIZ, and DOES 16
through 30,
Real Parties in Interest.

Case No.: 21CV02343

PROOF OF SERVICE
[CEQA CASE]
Action Filed: September 23, 2021
Attachment 1

PROOF OF SERVICE
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28

PROOF OF SERVICE
I, Debbie Downing, am not a party to this action. I am employed by Wittwer Parkin, in Santa Cruz County, California. My business and mailing address is P.O. Box 2197, Aptos, California 95003.

On July 9, 2026, I served copies of the following document(s) on the interested parties on the attached service list:
• PEREMPTORY WRIT OF MANDAMUS
__ BY U.S. MAIL – I placed a true and correct copy of the document(s) listed in sealed envelopes to be deposited in the United States mail, with postage thereon fully prepaid, in Aptos, California to the parties included on the attached service list.
x BY ELECTRONIC MAIL – I transmitted via EMAIL the document(s) listed above to the parties included on the attached service list.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and was executed on July 9, 2026 in Aptos, California. ___________________________
Debbie Downing

Attachment 1

PROOF OF SERVICE
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28

SERVICE LIST
Kevin D. Siegel [email protected]
Leila J. Moshref-Danesh [email protected]
Burke, Williams & Sorensen, LLP [email protected]
1 California Street, Suite 3050
San Francisco, CA 94111-5432
Attorneys for Respondents
City of Watsonville and City Council of the City of Watsonville Kirk Musacchio [email protected]
Taylor Pohle [email protected]
Collins + Collins LLP [email protected]
2175 N. California Blvd., Suite 835
Walnut Creek, CA 94596
Attorneys for Real Parties in Interest
Raoul Ortiz and Eve Ortiz
Attachment 1

1 Reso No. ______ (CM)
Reference: Reso No.s 236-21, 237-21, 238-21, 239-21 (Rescind) Meeting Date: 082526 SWZ ______ TV ______ CDD ______
RESOLUTION NO. (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE RESCINDING RESOLUTION NOS. 236-21 (CM), 237-21 (CM), 238-21 (CM), AND 239-21 (CM) AND SETTING ASIDE
APPROVALS FOR A 21-UNIT TOWNHOME PROJECT NO. (PP2018-11) WHEREAS, on August 24, 2021, the City Council of the City of Watsonville (“City”) conducted a public hearing and took the following actions in connection with approving a proposed 21-unit townhome project (PP 2018-11) (the “Project”) located at 547 Airport Boulevard (APN 015-321-01) (the “Project Site”):
(1) Adopted Resolution No. 236-21 (CM) adopting a Mitigated Negative Declaration and Mitigation, Monitoring and Reporting Program for the Project; (2) Adopted Resolution No. 237-21 (CM) amending the Watsonville 2005 General Plan to redesignate the Project Site from (I) Industrial to (R-HD) High-Density Residential, and directing changes to be made on the General Plan Land Use Diagram;
(3) Introduced Ordinance No. 1420-21 (CM) approving a rezoning to establish a Planned Development Overlay District and a change of zone from (IP) Industrial Park to (RM-3/PD) for the Project Site and directing changes to be made on the Zoning Map;
(4) Adopted Resolution No. 238-21 (CM) approving a Special Use Permit with Design Review, Specific Development Plan, and Environmental Review for the Project; and
(5) Adopted Resolution No. 239-21 (CM) approving a Tentative Tract Map for the Project.

2 Reso No. ______ (CM)
Reference: Reso No.s 236-21, 237-21, 238-21, 239-21 (Rescind) Meeting Date: 082526
WHEREAS, on September 14, 2021, the City Council passed Ordinance No. 1420- 21 (CM); and
WHEREAS, on September 23, 2021, a Petition for Writ of Mandate and Complaint for Declaratory Relief ("Petition") was filed, challenging the Project and associated environmental approvals under the California Environmental Quality Act (“CEQA”) and the State Aeronautics Act in Santa Cruz County Superior Court (“Court”), Case No. 21CV02343, Watsonville Pilots Association v. City of Watsonville, et al. (the "Lawsuit"); and
WHEREAS, on February 3, 2026, the Court issued a Final Ruling in the Lawsuit granting the Petition, and subsequently entered Judgment on September July 6, 2026, in favor of the plaintiff; and
WHEREAS, on July 6, 2026, the Court issued and on July 9, 2026, the City was served with, a Peremptory Writ of Mandate ordering that within 60 days (i.e. no later than September 8, 2026), the City rescind the Mitigated Negative Declaration for the Project as well as all related approvals, including the General Plan Amendment, rezoning, special use permit, design review, specific development plan, and tentative tract map; and WHEREAS, by adopting this resolution and an associated ordinance, the City takes action to fully comply with the Court's Judgment and Peremptory Writ of Mandate.

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

1. The above recitals are hereby incorporated in their entirety.

2. Setting aside the Project approvals is exempt from CEQA pursuant to the common sense exemption set forth in CEQA Guidelines Section 15061(b)(3), because rescission is a purely administrative action involving no physical change to the

3 Reso No. ______ (CM)
Reference: Reso No.s 236-21, 237-21, 238-21, 239-21 (Rescind) Meeting Date: 082526
environment. Therefore, it can be seen with certainty that there is no possibility that this action will have a significant effect on the environment.

3. The City Council hereby rescinds Resolution No. 236-21 (CM) adopting a Mitigated Negative Declaration and Mitigation, Monitoring, and Reporting Program for the Project.

4. The City Council hereby rescinds Resolution No. 237-21 (CM) amending the Watsonville 2005 General Plan (the 26th amendment to the General Plan).

5. The City Council hereby rescinds Resolution No. 238-21 (CM) approving a Special Use Permit with Design Review, Specific Development Plan, and Environmental Review for the Project.

6. The City Council hereby rescinds Resolution No. 239-21 (CM) approving Tentative Tract Map No. 1604 for the Project.

7. The City Council hereby sets aside all approvals associated with the Project (PP 2018-11), including the Special Use Permit with Design Review, Specific Development Plan, and Tentative Tract Map No. 1604 (rescission of Ordinance No. 1420- 21 must be done by separate ordinance, rather than by resolution)

8. This Resolution shall be effective upon approval.
********************************

1 Ord. No. ______ (CM)
Reference: Ordinance No. 1420-21 (Rescind)
Meeting Date: 082526 SWZ ______ TV ______ CDD ______
ORDINANCE NO. Introduction (CM)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE REPEALING ORDINANCE NO. 1420-21 (CM)
AMENDING THE OFFICIAL ZONING MAP; AND FINDING THE ACTION

EXEMPT FROM REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINES SECTION
15061(B)(3)
WHEREAS, on August 24, 2021, the City Council of the City of Watsonville (“City”) conducted a public hearing and took the following actions in connection with approving a proposed 21-unit townhome project (the “Project”) located at 547 Airport Boulevard (APN 015-321-01) (the “Project Site”):
(1) Adopted Resolution No. 236-21 (CM) adopting a Mitigated Negative Declaration and Mitigation, Monitoring and Reporting Program for the Project; (2) Adopted Resolution No. 237-21 (CM) amending the Watsonville 2005 General Plan to redesignate the Project Site from (I) Industrial to (R-HD) High-Density Residential, and directing changes to be made on the General Plan Land Use Diagram;
(3) Introduced Ordinance No. 1420-21 (CM) approving a rezoning to establish a Planned Development Overlay District and a change of zone from (IP) Industrial Park to (RM-3/PD) for the Project Site and directing changes to be made on the Zoning Map;
(4) Adopted Resolution No. 238-21 (CM) approving a Special Use Permit with Design Review, Specific Development Plan, and Environmental Review for the Project; and

2 Ord. No. ______ (CM)
Reference: Ordinance No. 1420-21 (Rescind)
Meeting Date: 082526
(5) Adopted Resolution No. 239-21 (CM) approving a Tentative Tract Map for the Project.

WHEREAS, on September 14, 2021, the City Council passed Ordinance No. 1420- 21 (CM); and
WHEREAS, on September 23, 2021, a Petition for Writ of Mandate and Complaint for Declaratory Relief ("Petition") was filed, challenging the Project and associated environmental approvals under the California Environmental Quality Act (“CEQA”) and the State Aeronautics Act in Santa Cruz County Superior Court (“Court”), Case No. 21CV02343, Watsonville Pilots Association v. City of Watsonville, et al. (the "Lawsuit"); and
WHEREAS, on February 3, 2026, the Court issued a Final Ruling in the Lawsuit granting the Petition, and subsequently entered Judgment on September July 6, 2026, in favor of the plaintiff; and
WHEREAS, on July 6, 2026, the Court issued and on July 9, 2026, the City was served with a Peremptory Writ of Mandate ordering that within 60 days (i.e. no later than September 8, 2026), the City rescind the Mitigated Negative Declaration for the Project as well as all related approvals, including the General Plan Amendment, rezoning, special use permit, design review, specific development plan, and tentative tract map; and WHEREAS, by adopting this ordinance and associated resolution, the City takes action to fully comply with the Court's July 6, 2026, Peremptory Writ of Mandate.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. INCORPORATION OF RECITALS.

3 Ord. No. ______ (CM)
Reference: Ordinance No. 1420-21 (Rescind)
Meeting Date: 082526
The above recitals are hereby incorporated in their entirety.

SECTION 2. ENVIRONMENTAL REVIEW.

Setting aside the Project approvals is exempt from CEQA pursuant to the common sense exemption set forth in CEQA Guidelines Section 15061(b)(3), because this is a purely administrative action involving no physical change to the environment.

Therefore, it can be seen with certainty that there is no possibility that this action will have a significant effect on the environment.

SECTION 3. ENACTMENT.

The City Council hereby repeals Ordinance No. 1420-21 (CM) amending the Official Zoning Map.

SECTION 4. PUBLICATION.

This ordinance shall be published in the Watsonville Register-Pajaronian and/or Santa Cruz Sentinel in compliance with the provisions of the Charter of the City of Watsonville.

SECTION 5. EFFECTIVE DATE.

This ordinance shall take effect thirty (30) days after its adoption. ***************************************

547 Airport Boulevard Townhome Project
Compliance with Writ of Mandate
August 25, 2026

Purpose of Tonight’s Item
• Take the actions required by the Santa Cruz County Superior Court’s Peremptory Writ of Mandate.
• Set aside the approvals for the 21-unit townhome project at 547 Airport Boulevard.
• Deadline for compliance: September 8, 2026.

Project Approvals
• Project: 21-unit townhouse project on approximately 1.57 acres . • August 24, 2021: City Council approved:
• Resolution No. 236-21 (CM) adopting a Mitigated Negative Declaration and Mitigation, Monitoring and Reporting Program;
• Resolution No. 237-21 (CM) amending the Watsonville 2005 General Plan to redesignate the Project Site from (I) Industrial to (R-HD) High-Density Residential, and directing changes to be made on the General Plan Land Use Diagram;
• First Reading of Ordinance No. 1420-21 (CM) (Introduction) approving a rezoning to establish a Planned Development Overlay District and a change of zone from (IP) Industrial Park to (RM3/PD) for the Project Site and directing changes to be made on the Zoning Map; • Resolution No. 238-21 (CM) approving a Special Use Permit with Design Review, Specific Development Plan, and Environmental Review; and
• Resolution No. 239-21 (CM) approving a Tentative Tract Map. • September 14, 2021: City Council passed Ordinance No. 1420-21. Page 671 of 674 Watsonville Pilots Association v. City of Watsonville, et al., Santa Cruz County Superior Court Case No. 21VC02343
• September 3, 2021: Watsonville Pilots Association (WPA) challenged the Project approvals under the California Environmental Quality Act and the State Aeronautics Act.
• August 21, 2023: Project permits and tract map automatically expired. • July 6, 2026: Court entered judgment granting WPA’s Petition and issued a Peremptory Writ of Mandate.

Writ of Mandate
• Ordered city to “set aside any and all approvals” related to the development. • July 9, 2026: Writ served on City.
• September 8, 2026: deadline for City’s compliance.

Recommended Actions:

1. Adopt a Resolution rescinding Resolution Nos. 236-21, 237-21, 238-21 and 239-

21. 2. Introduce, by title only, and waive further reading of an Ordinance rescinding Ordinance No. 1420-21.