agenda city of watsonville city council/redevelopment agency meeting

AGENDA 

CITY OF WATSONVILLE 

CITY COUNCIL/REDEVELOPMENT AGENCY MEETING 

Motto: "Opportunity Through Diversity; Unity Through Cooperation." 

Mission Statement: "The City of Watsonville is dedicated to improving the economic vitality, safety & living environment for the 

culturally rich Watsonville community, by providing leadership for the achievement of community goals & high quality, responsive 

public services." 

Mayor/Chair Daniel Dodge, District 5 

Mayor Pro Tempore/Vice-Chair Eduardo Montesino District 4 

Manuel Quintero Bersamin, Member, District 1 

Oscar Rios, Member, District 2 

Lowell Hurst, Member, District 3 

Emilio Martinez, Member, District 6 

Nancy A. Bilicich, Member, District 7 

Carlos J. Palacios, City Manager/Executive Director 

Alan J. Smith, City Attorney/Agency Counsel 

Beatriz Vázquez Flores, City Clerk/Agency Secretary 

CIVIC PLAZA COUNCIL CHAMBERS 

275 MAIN STREET, 4 th FLOOR, 6 TH LEVEL PARKING 

WATSONVILLE, CALIFORNIA 

INTERPRETATION SERVICES 

Spanish language interpretation is available 

Americans with Disabilities Act 

The Council Chambers is an accessible facility. If you wish to attend a meeting and you will require 

assistance in order to attend and/or participate, please call the City Clerk's Office at least five (5) 

days in advance of the meeting to make arrangements. The City of Watsonville TDD number is (831) 

763-4075. 

Meetings are televised live on Charter Cable Communications Channel 70 and AT&T 

Channel 99. 

For information regarding this agenda or interpretation services, please call the City Clerk's Office at (831) 768-3040.

AGENDA 

CITY OF WATSONVILLE REDEVELOPMENT AGENCY 

REGULAR MEETING 

June 14, 2011 

City Council Chambers 

275 Main Street, 4 th Floor 

4:30 P.M. 

Anyone Addressing the Redevelopment Agency is Asked to Fill out a Blue Card & Leave it at the Podium for 

Recording Purposes. Speakers will be limited to three (3) minutes each. 

(IF YOU CHALLENGE ANY ACTION APPEARING ON THIS AGENDA IN COURT, YOU MAY BE LIMITED TO 

RAISING ONLY THOSE ISSUES YOU OR SOMEONE ELSE RAISED AT THE PUBLIC MEETING DESCRIBED ON 

THIS AGENDA, OR IN WRITTEN CORRESPONDENCE DELIVERED TO THE CITY CLERK PRIOR TO, OR AT, 

THE PUBLIC MEETING) 

1.0 ROLL CALL 

2.0 ORAL COMMUNICATIONS FROM THE PUBLIC & AGENCY MEMBERS 

(This time is set aside for members of the general public to address the Council on any item not on the 

Redevelopment Agenda, which is within the subject matter jurisdiction of the Agency. No action or 

discussion shall be taken on any item presented except that any Agency Member may respond to 

statements made or questions asked, or may ask questions for clarification. All matters of an administrative 

nature will be referred to staff. All matters relating to Agency will be noted in the minutes and may be 

scheduled for discussion at a future meeting or referred to staff for clarification and report. Any Agency 

Member may place matters brought up under Oral Communications on a future agenda. ALL SPEAKERS 

ARE ASKED TO FILL OUT A BLUE CARD & LEAVE IT AT THE TABLE DESIGNATED NEAR THE 

PODIUM, GO TO THE PODIUM AND ANNOUNCE THEIR NAME AND ADDRESS IN ORDER TO OBTAIN 

AN ACCURATE RECORD FOR THE MINUTES OF THE MEETING.) 

JOINT CITY COUNCIL/REDEVELOPMENT AGENCY MEETING 

4.0 CONSENT AGENDA 

All items appearing on the Consent Agenda are recommended actions which are considered to be routine 

and will be acted upon as one consensus motion. All items removed will be considered immediately after 

the consensus motion. The Chairman will allow public input prior to the approval of the Consent Agenda. 

4.1 MOTION APPROVING REPORTS OF DISBURSEMENTS 

4.2 MOTION APPROVING MINUTES FOR MAY 10 & 24, 2011 

4.3 JOINT RESOLUTION AWARDING AGREEMENT FOR FINANCIAL AUDITING 

SERVICES TO MOSS, LEVY & HARTZHEIM, CERTIFIED PUBLIC 

ACCOUNTANTS, IN AN AMOUNT NOT TO EXCEED $213,960 FOR A PERIOD 

OF FIVE YEARS, COMMENCING WITH FISCAL YEAR JUNE 30, 2011 

(Recommended by Administrative Services Director Pimentel) 

--Report 

--Resolution 

8.0 NEW BUSINESS 

O:\Agendas\2011\RA061411.docx 

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8.1 DEVELOPMENT OF APPLICATION TO SUBMIT TO THE STATE HOUSING & 

COMMUNITY DEVELOPMENT DEPARTMENT FOR A NEW ENTERPRISE 

ZONE FOR AN AMOUNT NOT TO EXCEED $85,000 (Recommended by 

Redevelopment & Housing Director Davison) 

(a) Staff Report 

(b) Agency Questions 

(c) Public Input 

(d) 

(e) 

Agency Discussion 

Resolution Approving Agreement with Rex Halverson & Associates to 

Assist City Staff in Preparing an Application to the State Housing & 

Community Development Department for Renewal of the Watsonville 

Enterprise Zone for an Amount not to Exceed $85,000 

8.2 MEMORANDUM OF UNDERSTANDING & SUPPORT LETTER FOR 

CALIFORNIA SUNSHINE REGIONAL CENTER ALLOWING PROJECTS IN 

WATSONVILLE TO ACCESS FUNDING THROUGH THE EB-5 INVESTOR 

VISA PROGRAM (Recommended by Redevelopment & Housing Director 

Davison) 


(b) Agency/City Council Questions 


(d) Agency/City Council Discussion 

(e) Motion Authorizing Executive Director/City Manager to Execute Support 

Letter 

(f) Joint Resolution Approving Memorandum of Understanding 

8.3 EMERGENCY ITEMS ADDED TO AGENDA 

10.0 ADJOURNMENT 

O:\Agendas\2011\RA061411.docx 

2

AGENDA 


REGULAR CITY COUNCIL MEETING 

June 14, 2011 

City Council Chambers 

275 Main Street, 4th Floor 

Anyone Addressing the City Council is asked to fill out a blue card and leave it at the podium for 

recording purposes 

(IF YOU CHALLENGE ANY ACTION APPEARING ON THIS AGENDA IN COURT, YOU MAY BE LIMITED TO 

RAISING ONLY THOSE ISSUES YOU OR SOMEONE ELSE RAISED AT THE PUBLIC MEETING DESCRIBED ON 

THIS AGENDA, OR IN WRITTEN CORRESPONDENCE DELIVERED TO THE CITY CLERK PRIOR TO, OR AT, 

THE PUBLIC MEETING.) 

4:35 P.M. SESSION 

(Immediately after Redevelopment Agency Meeting) 

1.0 ROLL CALL 


All items appearing on the Consent Agenda are recommended actions which are considered to be routine and will be 

acted upon as one consensus motion. Any items removed will be considered immediately after the consensus 

motion. The Mayor will allow public input prior to the approval of the Consent Agenda. 

4.1 MOTION APPROVING REPORT OF DISBURSEMENTS 

4.2 MOTION APPROVING MINUTES OF MAY 17 & 24, 2011 

4.3 RESOLUTION AWARDING $1,105,767 BID TO MONTEREY PENINSULA 

ENGINEERING FOR FREEDOM BOULEVARD RECONSTRUCTION PROJECT 

NO. ST-07-05 (Funded From Regional Surface Transportation Exchange [RSTPX] 

Funds & State Proposition 1B Funds) (Recommended by Public Works & Utilities 

Director Koch) 

--Report 

--Resolution 

4.4 RESOLUTION APPROVING AGREEMENT WITH PÁJARO VALLEY UNIFIED 

SCHOOL DISTRICT FOR SCHOOL COMMUNITY POLICING OFFICER 

SERVICES AT PÁJARO VALLEY HIGH SCHOOL & WATSONVILLE HIGH 

SCHOOL FOR SCHOOL YEAR 2011-2012 & REIMBURSE CITY $191,680 

(Recommended by Chief of Police Solano) 

--Report 

--Resolution 

4.5 RESOLUTION APPROVING SUBMITTAL OF AN APPLICATION FOR $5 

MILLION FOR RENOVATION OF RAMSAY PARK IN STATEWIDE PARK 

PROGRAM GRANT FUNDS THOUGH STATE OF CALIFORNIA DEPARTMENT 

OF PARKS & RECREATION UNDER PROPOSITION 84 (Recommended by 

Parks & Community Services Director Espinoza) 

--Report 

--Resolution 

O:\Agendas\2011\CC061411.Docx 

6/9/2011 8:30 PM 

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4.6 RESOLUTION APPROVING FY 2011/2012 BUDGET FOR SANTA CRUZ 

COUNTY ZONE 7 FLOOD CONTROL AND WATER CONSERVATION DISTRICT 

ZONE 7 BUDGET AS APPROVED BY ZONE 7 BOARD OF DIRECTORS 

(Recommended by Public Works & Utilities Director Koch) 

--Report 

--Resolution 

4.7 RESOLUTION APPOINTING DOBIE JENKINS TO THE PERSONNEL 

COMMISSION (Hurst-District 3) 

–Application 

--Resolution 

4.8 RESOLUTION RATIFYING MEMORANDUM OF UNDERSTANDING WITH 

INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 1272 FOR 

FISCAL YEARS 2011-2013 

5.0 ITEMS REMOVED FROM CONSENT AGENDA 


8.1 CODE OF ETHICS INVESTIGATION REPORT REGARDING MAYOR DODGE, 

COUNCIL MEMBER BERSAMIN, AND LIBRARY BOARD TRUSTEE RIVAS 

(Recommended by Ad-Hoc Committee) 

(a) Ad-Hoc Committee Report 

(b) City Council Questions 


(d) 

(e) 

City Council Discussion 

Resolution Approving Admonishment of Mayor Dodge Regarding Public 

Comment 

8.2 EMERGENCY ITEMS ADDED TO AGENDA 

5:30 P.M. 

10.0 CLOSED SESSION 

(City Council Conference Room, 275 Main Street, 4th Floor) 

(a) Public Comments regarding the Closed Session agenda will only be accepted by the City 

Council at this time. 

(b) Closed Session Announcement 

The City Council will now recess to discuss those items listed on the Closed Session 

Statement attached to the Agenda. 


1.0 ROLL CALL 

2.0 PLEDGE OF ALLEGIANCE 

3.0 ORAL COMMUNICATIONS FROM THE PUBLIC & CITY COUNCIL 


6/9/2011 8:30 PM 

2

(This time is set aside for members of the general public to address the Council on any item not on the Council 

Agenda, which is within the subject matter jurisdiction of the City Council. No action or discussion shall be 

taken on any item presented except that any Council Member may respond to statements made or questions 

asked, or may ask questions for clarification. All matters of an administrative nature will be referred to staff. 

All matters relating to Council will be noted in the minutes and may be scheduled for discussion at a future 

meeting or referred to staff for clarification and report. Any Council Member may place matters brought up 

under Oral Communications on a future agenda. ALL SPEAKERS ARE ASKED TO FILL OUT A BLUE CARD 

& LEAVE IT AT THE TABLE DESIGNATED NEAR THE PODIUM, GO TO THE PODIUM AND ANNOUNCE 

THEIR NAME AND ADDRESS IN ORDER TO OBTAIN AN ACCURATE RECORD FOR THE MINUTES OF 

THE MEETING.) 

3.1 MAYOR’S PROCLAMATION TO MAJOR LUIS AND MARIA MARTINEZ FOR THEIR 

CONTRIBUTIONS TO THE COMMUNITY 

3.2 REPORT OUT OF CLOSED SESSION 

6.0 PUBLIC HEARINGS, ORDINANCES, & APPEALS 

6.1 CITY OF WATSONVILLE 2010 URBAN WATER MANAGEMENT PLAN 

(Recommended by Public Works & Utilities Director Koch) 


(b) City Council Questions 

(c) Public Hearing 

(d) City Council Discussion 

(e) Resolution Approving the City of Watsonville 2010 Urban Water 

Management Plan 


6.2 FINAL BUDGET FOR FISCAL YEAR 2011-2012/FINAL STRATEGIC PLAN 

(a) Staff Report—Strategic Plan (Recommended by Assistant City Manager 

Tavantzis) 

(b) Staff Report—Budget (Recommended by Administrative Services Director 

Pimentel) 

(c) City Council/Agency Questions 

(d) Public Hearing 

(e) City Council/Agency Discussion 

(f) Motion Approving Terms Between the City and the City’s Water, Sewer, 

and Solid Waste Enterprises for a $103,000 Monthly Payment Effective 

July 1, 2011, and Thereafter Subject to Annual Consumer Price Index 

(CPI) Adjustment Process 

(g) Motion Approving General Fund’s 8% Property Management Rate Applied 

Against Payments Held by Other Funds, Including the Airport 

(h) Resolution Approving All Non-Utility Fees Under $5 Shall Round Up to 

Next 5-Cent Increment Rather Than Next Whole Dollar, & Reducing Public 

Records Act Photocopy Fee from .35 Cents to .25 Cents per Page 

(i) Resolution Classifying Various Components of Fund Balance as defined in 

Governmental Accounting Standards Board Statement No. 54 

(j) City Council Resolution Adopting Final Budget for Fiscal Year 2011-2013, 

Providing for Certain Transfers of Funds, & Approving Five Year 

(2011-2016) Capital Improvement Program (CIP) 

(k) Ordinance Instructing County of Santa Cruz to Levy & Collect Property Tax 

on Taxable Property in City for Fiscal Year Beginning 7/1/11, Fixing Rate of 

0.077% Thereof & Allocating it to Retirement Fund 


6/9/2011 8:30 PM 

3

(l) 

(m) 

(n) 

(o) 

City Council Resolution Establishing Total Annual Appropriations Pursuant 

to California State Constitution Article XIII-B for Fiscal Year 2011-2012 

(Proposition 4 Gann Spending Limit) 

Resolution Amending Resolution 53-02 (CM) Which Fixed Rent Charges 

for Hangars & Facilities at Watsonville Municipal Airport 

Redevelopment Agency Resolution Approving Final Budget for Fiscal Year 

Ending June 30, 2012, Accepting Proposed Budget for Fiscal Year ending 

June 30, 2013, Subject to Requirements Set Forth in Resolution of City 

Council 

Redevelopment Agency Resolution Finding that Use of Low & Moderate 

Income Housing Funds Allocated from Watsonville 2000 Redevelopment 

Project for Planning & General Administrative Costs is Necessary for 

Purpose of Producing, Improving & Preserving Community’s Supply of Low 

& Moderate-Income Housing 

(p) Joint Resolution Finding Use of Taxes Allocated from Watsonville 2000 

Redevelopment Project for Purpose of Improving, Increasing, & Preserving 

Community’s Supply of Low & Moderate Income Housing Outside Project 

Area will be of Benefit to Project Area 

(q) 

(r) 

(s) 

(t) 


Resolution Adopting Strategic Plan 

Resolution Reaffirming City’s Option to Hire Temporary Firefighters 

Resolution Implementing Government Code Section 20691 & 

Electing to Pay Employer Paid Member Contributions to California 

Public Employees’ Retirement System (―CalPERS‖) for City Clerk, 

City Manager & All Employees in the Confidential Unit, 

Management Unit, Mid-Management Unit & Service Employees 

International Union (SEIU)—Local 521 Clerical Technical 

Resolution Authorizing & Setting Forth Internal Loan Terms & 

Conditions Between the General Fund & City’s Pooled Money 

Investment Account of up to $6.5 Million & Authorizing the 

Defeasance of the CalPERS Side Funds For Public Safety Plans 

Pursuant to Section 54954.2(a)(1) of the Government Code of the State of California, this agenda 

was posted at least 72 hours in advance of the scheduled meeting at a public place freely accessible 

to the public 24 hours a day. 

Materials related to an item on this Agenda submitted to the Council after distribution of the agenda 

packet are available for public inspection in the City Clerk’s Office (275 Main Street, 4 th Floor) during 

normal business hours. Such documents are also available on the City of Watsonville website at 

www.ci.watsonville.ca.us subject to staff’s ability to post the document before the meeting. 


6/9/2011 8:30 PM 

4

CITY COUNCIL/REDEV #4.2 

UNADOPTED 

MINUTES 

REDEVELOPMENT AGENCY 

MEETING 

May 10, 2011 

City of Watsonville 

Council Chambers 


CONTENTS 

6:35 P.M. Session 

1.0 Roll Call 

2.0 Oral Communications (none) 

Joint Council/Redevelopment 

Agency 

4.1 Motion Approve Disbursements 

4.2 Motion Approve Minutes 

4.3 Joint Reso 13-11(RA)/78-11 (CM) 

Authorize ED/CM Issue 

RFP/Auditing Services 

10.1 Adjournment 

6:35 P.M. 

1.0 ROLL CALL 

Mayor Dodge, Mayor Pro Tempore Montesino, and Council Members Bersamin, Bilicich, 

Hurst, and Rios were present. Member Martinez was absent. 

2.0 ORAL COMMUNICATIONS FROM THE PUBLIC & AGENCY MEMBERS (none) 



MOTION: It was moved by Member Bersamin, seconded by Member Rios, and carried 

by the following vote that Consent Agenda Items 4.1 through 4.3 be approved: 

AYES: MEMBERS: Bersamin, Bilicich, Hurst, Montesino, Rios, Dodge 

NOES: MEMBERS: None 

ABSENT: MEMBERS: Martinez 

4.1 MOTION APPROVING REPORTS OF DISBURSEMENTS 

4.2 MOTION APPROVING MINUTES FOR APRIL 12, 2011 

4.3 RESOLUTION NO. 13-11 (RA): 

RESOLUTION NO. 78-11 (CM): 

A JOINT RESOLUTION OF THE REDEVELOPMENT AGENCY AND CITY COUNCIL 

OF THE CITY OF WATSONVILLE AUTHORIZING AND DIRECTING THE EXECUTIVE 

DIRECTOR/CITY MANAGER TO ISSUE REQUEST FOR PROPOSALS FOR 

FINANCIAL AUDITING SERVICES FOR A PERIOD NOT TO EXCEED FIVE (5) 

YEARS, COMMENCING WITH FISCAL YEAR JUNE 30, 2011 

The above resolutions were introduced by Member Bersamin, seconded by Member 

Rios, and carried by the following vote: 

AYES: MEMBERS: Bersamin, Bilicich, Montesino, Neighbors, Rios, Dodge 

Vol 59 Min-RA051011 Joint 

331

NOES: 

ABSENT: 

MEMBERS: None 

MEMBERS: Martinez 


The meeting adjourned at 6:44 P.M. 

ATTEST: 

__________________________________ 

Daniel Dodge, Chair/Mayor 

____________________________________ _______ 

Beatriz Vázquez Flores, Agency Secretary/City Clerk 

VOL 6 RA051011 Joint 

332

Unadopted 

MINUTES 


MEETING 

May 24, 2011 


8:20 P.M. Council Chambers 


CONTENTS 

8.4 Budget Study Session 2011-2013 10.1 Adjournment 

8:20 P.M. 



8.4 STUDY SESSION OF PROPOSED BUDGET FOR FISCAL YEARS 2011-2013 


The staff report was given by Administrative Services Director Pimentel. 

(b) 

City Council/Agency Members Questions 

Administrative Services Director Pimentel answered questions from 

Agency/Council Members. 

Administrative Services Director Pimentel at the request of Member Bilicich said 

he would research the annual cost of overtime paid to administrative staff and get 

that information to her. 

MAYOR DODGE DECLARED A RECESS AT 9:41 P.M. 

THE MEETING RECONVENED AT 9:51 P.M. 

(c) 

(d) 

Public Input (None) 

City Council/Agency Members Discussion 

Administrative Services Director Pimentel, at the request of Member Bilicich, said 

he would inform the Council of any suggestions or comments that are received 

from the public regarding the budget deficit. 

Member Martinez suggested private patrols be contracted for special events. He 

asked that bilingual pay be reviewed. 

Member Bilicich asked to be provided with a proposal from the Fire and Police 

Departments on how to reduce overtime cost. 

Member Martinez left at 10:23 p.m. 

Vol 59 Min-RA052411 Joint.docx 

333

City Manager Palacios clarified some of the comments made by Member 

Martinez regarding bilingual pay, pay reductions to upper management staff, and 

economic development. 

Administrative Services Director Pimentel asked the public to send comments to 

the City regarding the budget. 

(e) 

Appropriate Motion (none) 



ATTEST: 

__________________________________ 

Daniel Dodge, Chair/Mayor 

____________________________________ _______ 

Beatriz Vázquez Flores, Agency Secretary/City Clerk 

VOL 6 RA052411 Joint.docx 

334



Finance Department 

M E M O R A N D U M 

DATE: June 6, 2011 

TO: 

FROM: 

SUBJECT: 

Carlos J. Palacios, City Manager 

Marc Pimentel, Administrative Services Director 

William Hays, Assistant Finance Officer 

ADOPT A RESOLUTION AUTHORIZING THE CITY TO 

ENTERING INTO AN AGREEMENT FOR AUDITING SERVICES 

FOR A NOT TO EXCEED FIVE (5) YEAR PERIOD 

COMMENCING WITH FISCAL YEAR JUNE 30, 2011 WITH 

MOSS, LEVY & HARTZHEIM, CERTIFIED PUBLIC 

ACCOUNTANTS. 

AGENDA ITEM: June 14, 2011 City Council & Redevelopment Agency 

RECOMMENDATION: 

It is recommended that the City Council authorize entering into an agreement for 

Auditing Services for a not to exceed five (5) year period commencing with fiscal year 

June 30, 2011 with Moss, Levy & Hartzheim, Certified Public Accountants. 

DISCUSSION: 

The City Charter requires that the Council have an independent certified public 

accountant to audit the books, records and accounts of all officers and employees of the 

City who receive, administer or disburse public funds, and such other officers, 

employees, departments and agencies. The audit is to be conducted at least annually 

in accordance with accepted auditing standards. 

The City recently completed a one (1) year audit contract with the firm of Moss, Levy 

and Hartzheim with completion of the audit report for fiscal year ended, June 30, 2010. 

On May 10, 2011, the City Council authorized the circulation of a Request for Proposal 

for Auditing Services for a five (5) year period, subject to an annual review and 

recommendation by staff. 

The Request for Proposal was circulated to eleven firms. Only Moss, Levy & 

Hartzheim, CPA's responded to the proposal. The City received two (2) no thank you 

letters and eight (8) firms did not reply. 

Writer’s name 6/6/2011 5:11:26 PM 

P:\1Marc\Audit\RFP\2011\SR_Audit-award_f3_2011-0614.docx 

Page 1 of 2

Moss, Levy & Hartzheim, CPA's have audited the City and Redevelopment Agency for 

the last 11 years, with two five year contracts and last year's one year contract 

extension approved by Council. Staff has been very satisfied with the work performed 

by Moss, Levy & Hartzheim, CPA's and is recommending them to the City Council for 

final selection and award. This will provide adequate time for the audit firm selected 

and staff to prepare for the fiscal year end June 30, 2011 audit in a timely manner. 

FINANCIAL IMPACT: 

The cost of the audit is budgeted in the City's Biennial budget as a separate line item. 

The amount of the annual contract is $39,900 for fiscal year 2010/11.This includes the 

City, Redevelopment Agency, and required special reports. If the City chooses to 

continue this service for the five fiscal years, the costs would be as follows: 

Fiscal Year Amount City of Watsonville Redevelopment Agency 

2010-11 $39,900 $33,100 $6,800 

2011-12 $41,295 $34,255 $7,040 

2012-13 $42,740 $35,450 $7,290 

2013-14 $44,240 $36,690 $7,550 

2014-15 $45,785 $37,965 $7,820 

ALTERNATIVES: 

Council and Agency could reject staff's recommendation of Moss, Levy & Hartzheim as 

the City independent auditor and request staff to reissue the Request for Proposals. 

ATTACHMENTS: 

none 

cc: 

City Attorney 


P:\1Marc\Audit\RFP\2011\SR_Audit-award_f3_2011-0614.docx 



RESOLUTION NO.__________ (RA) 

RESOLUTION NO.__________ (CM) 

A JOINT RESOLUTION OF THE REDEVELOPMENT AGENCY AND 

CITY COUNCIL OF THE CITY OF WATSONVILLE AWARDING 

AGREEMENT FOR FINANCIAL AUDITING SERVICES TO MOSS, LEVY 

& HARTZHEIM, CERTIFIED PUBLIC ACCOUNTANTS, A GENERAL 

PARTNERSHIP, IN AN AMOUNT NOT TO EXCEED $213,960, FOR A 

PERIOD OF FIVE YEARS, COMMENCING WITH FISCAL YEAR ENDING 

JUNE 30, 2011, FOR $39,900 AND INCREASING THEREAFTER BY 

APPROXIMATELY 3.5% AND AUTHORIZING AND DIRECTING THE 

EXECUTIVE DIRECTOR/CITY MANAGER TO EXECUTE AGREEMENT 

WHEREAS, joint Resolution No. 13-11 (RA)/78-11 (CM) adopted by the 

Redevelopment Agency/City Council of the City of Watsonville on May 10, 2011, 

authorized and directed the Executive Director/City Manager to issue Request for 

Proposals for financial auditing services; and 

WHEREAS, proposals received for the above services were opened in the City 

Council Chambers, City Hall, 250 Main Street, Watsonville, California, on Thursday, May 

26, 2011; and 

WHEREAS, the Executive Director/City Manager has recommended that the 

proposal from Moss, Levy & Hartzheim, Certified Public Accountants, a general 

partnership, for financial auditing services, in an amount not to exceed $213,960, be 

accepted as the lowest responsible bid. 

NOW, THEREFORE, BE IT RESOLVED BY THE REDEVELOPMENT 

AGENCY/CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS 

FOLLOWS: 

1. That the proposal of Moss, Levy & Hartzheim, Certified Public Accountants, 

a general partnership, for financial auditing services, in an amount not to exceed 

$213,960, for a five year period as shown below, is hereby accepted. 

Reso No. ____ (RA) 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\Award Contract Moss Levy Hartzheim.docx 

ri 6/7/2011 5:34:24 PM 

AJS ______ CJP ______Finance ______ 

1

Fiscal Year 

Max Amount 

2010-11 $39,900 

2011-12 $41,295 

2012-13 $42,740 

2013-14 $44,240 

2014-15 $45,785 

2. That the Executive Director/City Manager be and is hereby authorized and 

directed to execute the Agreement for and on behalf of the Redevelopment Agency/City 

of Watsonville. 

3. That all other proposals are hereby rejected. 

Reso No. ____ (RA) 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\Award Contract Moss Levy Hartzheim.docx 

ri 6/7/2011 5:34:24 PM 

2

CITY COUNCIL/REDEV #8.1 (a) 


Redevelopment and Housing Department 


DATE: May 31, 2011 

TO: 

FROM: 

SUBJECT: 

Carlos J. Palacios, Executive Director 

Jan Davison, Redevelopment Director 

Kurt Overmeyer, Economic Development Manager 

Approval of Contract for Services with Rex Halverson and 

Associates to Prepare and Enterprise Zone application 

AGENDA ITEM: June 14, 2011 Redevelopment Agency 

RECOMMENDATION: Staff recommends that the Agency authorize the Executive Director or 

designee to execute a contract with Rex Halverson and Associates to assist staff in preparing 

an application to the State Housing and Community Development Department for renewal of 

the Watsonville Enterprise Zone for an amount not to exceed $85,000. 

DISCUSSION: The State of California currently allows up to 42 Enterprise Zones (EZ), of 

which Watsonville is one. The Enterprise Zone in Watsonville is set to expire at the end of 

April 2012. The Enterprise Zone program provides tax incentives to businesses that locate 

within these geographically based districts. The incentives include a substantial tax credit for 

hiring people from a Targeted Employment Area or who have defined barriers to employment, 

tax credits for installing manufacturing and sales related machinery and tax credits to banks 

that make loans to businesses within Enterprise Zones. The Watsonville Enterprise Zone has 

been an important component in the City’s efforts to attract and retain businesses in 

Watsonville. Companies including Fox Racing Shox, Martinelli’s, West Marine and Driscoll’s 

utilize these tax credits which are frequently cited as an important reason for businesses to 

locate in Watsonville. To date, the City has issued 10,913 vouchers to local businesses that 

have benefited from the hiring tax credit since Watsonville was first designated as an 

Enterprise Zone in 1997. Obviously, this is an important economic tool for our community. 

While the Governor originally proposed the elimination of the Enterprise Zone program, the 

Governor’s May Revise budget called for the continuation of the program, but with substantial 

cuts to the Enterprise Zone Credits. However, a bill in the Assembly co-authored by Assembly 

Member Luis Alejo would protect the most important parts of the Enterprise Zone program 

Page 1 of 3 

M:\RAHD\AGENDA\2011\6-14-2011\Staff Report EZ Application.docx (Revised 8/19/10)

from these cuts. If this bill moves forward and becomes law, the value of the Enterprise Zone 

to Watsonville will be maintained. Since the law is in a state of uncertainty, the State Housing 

and Community Development Department (HCD), which is responsible for the Enterprise Zone 

Program, has not issued a request for applications for the year 2012. As a result, staff has 

been unable to assess the amount of time that would be required to prepare an application. 

Historically, these applications have been difficult to assemble and often exceed 500 pages in 

length. Since 2004, no application developed without the assistance of an outside expert has 

been approved by HCD. Therefore, with the potential release of requirements for new 

applications looming, securing the needed expert assistance is vital to submitting an 

application likely to be approved. The competition for Enterprise Zones can be fierce, and staff 

expects this competition to be exceptionally difficult as the 2012 round will be the last until 

2020 and only two zones expire in 2012. Staff expects that as many as 20 jurisdictions will be 

competing for the two remaining slots. 

Staff asked several companies with experience in preparing successful applications to provide 

qualifications and proposals. Of these, two provided the staff with the requested information. 

Both applicants were experienced and diligent, and offered similar pricing. After careful 

review, staff determined that Rex Halverson and Associates of Sacramento would be the best 

fit for Watsonville. 

This is an appropriate use of redevelopment funds and due to the uncertainty of the 

continuation of redevelopment, it may be prudent to enter into a contract for preparation of the 

application and appropriate redevelopment funds for this purpose now, because the proposed 

legislation calling for the elimination of redevelopment agencies also requires that contractual 

obligations be honored. As such, by entering into a contract at this time, the Agency would be 

preserving its ability to utilize tax increment funds for payment of this contract. 

Because of the uncertainly relative to the ultimate “ground rules” for Enterprise Zones and the 

timelines for release of application criteria, this contract contains a 10-day cancellation period 

and also provides that no work shall be commenced without a written order to proceed. If the 

request for applications is released by the State, staff will evaluate the application process and 

any changes to the Enterprise Zone Act and only proceed with this application should analysis 

conclude that there is a good chance the application will prevail and that the resulting 

Enterprise Zone will be of benefit to the community and to local businesses. 

STRATEGIC PLAN: This effort is consistent with the Strategic Plan goal of Sustainable 

Economic Development and is also consistent with the Agency’s Implementation Plan. 

FINANCIAL IMPACT: This contract is for an amount not to exceed $85,000. The impact of 

extending the Watsonville EZ for an additional 15 years will be substantially positive to the 

City, as this program will impact our ability to retain and attract new businesses to Watsonville. 

No work will proceed until the State Department of Housing and Community Development 

(HCD) releases the Enterprise Zone program guidelines and calls for applications and until a 


M:\RAHD\AGENDA\2011\6-14-2011\Staff Report EZ Application.docx 


written notice to proceed is issued. Funding for this contract, in an amount not to exceed 

$85,000, will be derived from Agency funds. 

ALTERNATIVES: The Agency and City Council could choose not to approve this contract, but 

doing so may jeopardize our ability to utilize redevelopment funds to pay for the required 

services at such time as the Enterprise Zone application is released. 

ATTACHMENTS: None. 

cc: 

Agency Counsel 


M:\RAHD\AGENDA\2011\6-14-2011\Staff Report EZ Application.docx 


CITY COUNCIL/REDEV #8.1 (e) 


A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY 

OF WATSONVILLE APPROVING AGREEMENT BETWEEN THE 

REDEVELOPMENT AGENCY OF THE CITY OF WATSONVILLE AND 

REX HALVERSON & ASSOCIATES, LLC., A LIMITED LIABILITY 

COMPANY, TO ASSIST CITY STAFF IN PREPARING AN APPLICATION 

TO THE STATE HOUSING AND COMMUNITY DEVELOPMENT 

DEPARTMENT FOR RENEWAL OF THE WATSONVILLE ENTERPRISE 

ZONE, IN AN AMOUNT NOT TO EXCEED $85,000, AND AUTHORIZING 

AND DIRECTING THE EXECUTIVE DIRECTOR TO EXECUTE SAME 

BE IT RESOLVED BY THE REDEVELOPMENT AGENCY OF THE CITY OF 

WATSONVILLE, CALIFORNIA, AS FOLLOWS: 

1. That the Agreement between the Redevelopment Agency of the City of 

Watsonville and Rex Halverson & Associates, LLC., a limited liability company, to assist 

City staff in preparing an application to the State Housing and Community Development 

Department for renewal of the Watsonville Enterprise Zone, in an amount not to exceed 

$85,000, a copy of which Agreement is attached hereto and incorporated herein by this 

reference, is fair and equitable and is hereby ratified and approved. 

2. That the Executive Director be and is hereby authorized and directed to 

execute said Agreement for and on behalf of the Redevelopment Agency. 

********************************************* 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\Agrmt Halverson Enterprise Zone.docx 

ri 6/7/2011 4:21:26 PM 

AJS ______ CJP ______ RAHD ______ 

1

AGREEMENT FOR SERVICES BETWEEN THE 

REDEVELOPMENT AGENCY OF THE CITY OF 

WATSONVILLE AND REX HALVERSON AND 

ASSOCIATES 

THIS AGREEMENT, is made and entered into this 14 th day of June, 2011, by and 

between the Redevelopment Agency of the City of Watsonville, a body politic, hereinafter 

called "Agency," and Rex Halverson and Associates, hereinafter called "Consultant." 

M:\RAHD\AGENDA\2011\6-14-2011\Contract - Halverson2.docx 

6/1/2011 3:07:35 PM 

WITNESSETH 

WHEREAS, the Agency needs to obtain certain professional, technical and/or 

specialized services of an independent contractor to assist the Agency in the most 

economical manner; and 

WHEREAS, Consultant has the requisite skill, training, qualifications, and 

experience to render such services called for under this Agreement to Agency. 

THE PARTIES HEREBY AGREE AS FOLLOWS: 

SECTION 1. SCOPE OF SERVICES. Consultant shall perform those services as 

specified in detail in Exhibit “A,” entitled "SCOPE OF SERVICES," which is attached hereto 

and incorporated herein. 

SECTION 2. TERM OF AGREEMENT. The term of this Agreement shall be from 

July 1, 2011 to December 31, 2012, inclusive. 

SECTION 3. SCHEDULE OF PERFORMANCE. The services of Consultant are to 

be completed according to the schedule set out in Exhibit "B," entitled "SCHEDULE OF 

PERFORMANCE," which is attached hereto and incorporated herein. Consultant will 

diligently proceed with the agreed Scope of Services and will provide such services in a 

timely manner in accordance with the "SCHEDULE OF PERFORMANCE." 

SECTION 4. COMPENSATION. The compensation to be paid to Consultant 

including both payment for professional services and reimbursable expenses as well as the 

rate and schedule of payment are set out in Exhibit "C" entitled "COMPENSATION", which 

is attached hereto and incorporated herein. 

SECTION 5. METHOD OF PAYMENT. Except as otherwise provided in Exhibit "C," 

each month, Consultant shall furnish to the Agency a statement of the work performed for 

compensation during the preceding month. Such statement shall also include a detailed 

record of the month's actual reimbursable expenditures. 


SECTION 6. INDEPENDENT CONTRACTOR. It is understood and agreed that 

Consultant, in the performance of the work and services agreed to be performed by 

Consultant, shall act as and be an independent contractor and not an agent or employee of 

Agency or the City of Watsonville, hereinafter called "City," and as an independent 

contractor, shall obtain no rights to retirement benefits or other benefits which accrue to 

City's or Agency's employees, and Consultant hereby expressly waives any claim it may 

have to any such rights. 

SECTION 7. ASSIGNABILITY. Consultant shall not assign or transfer any interest 

in this Agreement nor the performance of any of Consultant's obligations hereunder, 

without the prior written consent of Agency, and any attempt by Consultant to so assign this 

Agreement or any rights, duties or obligations arising hereunder shall be void and of no 

effect. 

SECTION 8. INDEMNIFICATION. Consultant has the expertise and experience 

necessary to perform the services and duties agreed to be performed by Consultant under 

this Agreement, and Agency is relying upon the skill and knowledge of Consultant to 

perform said services and duties. Consultant shall defend, indemnify and hold harmless 

Agency and City, their 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 Consultant or Consultant's 

officers, employees or agents. 

SECTION 9. INSURANCE. 

A. Errors and Omissions Insurance. Consultant shall obtain and maintain in 

full force throughout the term of this Agreement a professional liability insurance policy 

(Errors and Omissions), in a company authorized to issue such insurance in the State of 

California, with limits of liability of not less than One Million Dollars ($1,000,000.00) to cover 

all professional services rendered pursuant to this Agreement. 

B. Auto and Commercial General Liability Insurance. Consultant shall also 

maintain in full force and effect for the term of this Agreement, automobile insurance and 

commercial general liability insurance with an insurance carrier satisfactory to Agency, 

which insurance shall include protection against claims arising from bodily and personal 

injury, including death resulting therefrom, and damage to property resulting from any 

actual occurrence arising out of the performance of this Agreement. The amounts of 

insurance shall not be less than the following: 

(1) Commercial general liability insurance, or equivalent form, with a combined 

single limit of not less than One Million Dollars ($1,000,000.00) per occurrence. If such 

insurance contains a general aggregate limit, such limit shall apply separately to each 

project Consultant performs for Agency or City. Such insurance shall (a) name Agency and 

City, its appointed and elected officials, and its employees as insureds; and (b) be primary 


6/1/2011 3:07:35 PM 


with respect to insurance or self-insurance programs maintained by Agency and City and 

(c) contain standard separation of insured's provisions. 

(2) Business automobile liability insurance, or equivalent form, with a combined 

single limit of not less than $500,000.00 per occurrence. Such insurance shall include 

coverage for owned, hired and non-owned automobiles. 

C. Workers’ Compensation Insurance. In accordance with the provisions of 

Section 3700 of the Labor Code, Consultant shall be insured against liability for Workers' 

Compensation or undertake self-insurance. Consultant agrees to comply with such 

provisions before commencing performance of any work under this Agreement. 

D. Proof of Insurance to Agency Before Notice to Proceed to Work. 

Consultant shall satisfactorily provide certificates of insurance to the Agency Secretary 

before Notice to Proceed to Work of this Agreement will be issued. Certificates and policies 

shall state that the policy shall not be canceled or reduced in coverage without thirty (30) 

days written notice to Agency. Approval of insurance by Agency shall not relieve or 

decrease the extent to which Consultant may be held responsible for payment of damages 

resulting from services or operations performed pursuant to this Agreement. Consultant 

shall not perform any work under this Agreement until Consultant has obtained the required 

insurance and until the required certificates have been submitted to the Agency and 

approved by the Agency Counsel. If Consultant fails or refuses to produce or maintain the 

insurance required by these provisions, or fails or refuses to furnish Agency required proof 

that insurance has been procured and is in force and paid for, Agency shall have the right 

at Agency's election to forthwith terminate this Agreement immediately without any financial 

or contractual obligation to the Agency. As a result of such termination, the Agency 

reserves the right to employ another consultant to complete the project. 

SECTION 10. NON-DISCRIMINATION. Consultant shall not discriminate, in any 

way, against any person on the basis of age, sex, race, color, creed, national origin, or 

disability in connection with or related to the performance of this Agreement. 

SECTION 11. TERMINATION. 

A. Agency and Consultant shall have the right to terminate this Agreement, 

without cause, by giving not less than ten (10) days written notice of termination. 

B. If Consultant fails to perform any of its material obligations under this 

Agreement, in addition to all other remedies provided by law, Agency may terminate this 

Agreement immediately upon written notice. 

C. The Agency's Executive Director is empowered to terminate this Agreement 

on behalf of Agency. 


6/1/2011 3:07:35 PM 


D. In the event of termination, Consultant shall deliver to Agency copies of all 

work papers, schedules, reports and other work performed by Consultant and upon receipt 

thereof, Consultant shall be paid in full for services performed and reimbursable expenses 

incurred to the date of termination. 

SECTION 12. COMPLIANCE WITH LAWS. Consultant shall comply with 

all applicable laws, ordinances, codes and regulations of the federal, state and local 

governments. Consultant shall obtain and maintain a City of Watsonville business license 

during the term of this Agreement. 

SECTION 13. GOVERNING LAW. Agency and Consultant agree that the law 

governing this Agreement shall be that of the State of California. Any suit brought by either 

party against the other arising out of the performance of this Agreement shall be filed and 

maintained in the Municipal or Superior Court of the County of Santa Cruz. 

SECTION 14. PRIOR AGREEMENTS AND AMENDMENTS. This Agreement 

represents the entire understanding of the parties as to those matters contained herein. No 

prior oral or written understanding shall be of any force or effect with respect to those 

matters covered hereunder. This Agreement may only be modified by a written 

amendment. 

SECTION 15. CONFIDENTIAL INFORMATION. All data, documents, 

discussions, or other information developed or received by or for Consultant in performance 

of this Agreement are confidential and not to be disclosed to any person except as 

authorized by the Executive Director or his designee, or as required by law. 

SECTION 16. OWNERSHIP OF MATERIALS. All reports, documents or other 

materials developed or received by Consultant or any other person engaged directly by 

Consultant to perform the services required hereunder shall be and remain the property of 

Agency without restriction or limitation upon their use. 

SECTION 17. COVENANT AGAINST CONTINGENT FEES. The Consultant 

covenants that Consultant has not employed or retained any company or person, other 

than a bona fide employee working solely for Consultant, to solicit or secure the 

Agreement, and that Consultant has not paid or agreed to pay any company or person, 

other than a bona fide employee working solely for Consultant, any fees, commissions, 

percentage, brokerage fee, gift, or any other consideration contingent on or resulting from 

the award or making of this Agreement, for breach or violation of this covenant, the Agency 

shall have the right to annul this Agreement without liability, or in its discretion, to deduct 

from the contract price or consideration or otherwise recover, the full amount of such fee, 

commission, percentage fee, gift, or contingency. 

SECTION 18. WAIVER. Consultant agrees that waiver by Agency or any 

one or more of the conditions of performance under this Agreement shall not be construed 

as waiver of any other condition of performance under this Agreement. 


6/1/2011 3:07:35 PM 


SECTION 19. 

CONFLICT OF INTEREST. 

A. A Consultant shall avoid all conflict of interest or appearance of conflict of 

interest in performance of this Agreement. Consultant shall file a disclosure statement, if 

required by Agency Resolution, which shall be filed within thirty (30) days from the effective 

date of this Agreement or such Resolution, as applicable. 

B. No member, officer, or employee of the Agency or City, during their tenure, or 

for one (1) year thereafter, shall have any interest, direct or indirect, in this Agreement or 

the proceeds thereof and Consultant agrees not to allow, permit, grant, transfer or 

otherwise do anything which will result in such member, officer, or employee of the Agency 

or City from having such interest. 

SECTION 20. AUDIT BOOKS AND RECORDS. Consultant shall make 

available to Agency, its authorized agents, officers and employees, for examination any 

and all ledgers and books of account, invoices, vouchers, canceled checks and other 

records or documents evidencing or related to the expenditures and disbursements 

charged to the Agency, and shall furnish to Agency, its authorized agents and employees, 

such other evidence or information as Agency may require with respect to any such 

expense or disbursement charged by Consultant. 

SECTION 21. NOTICES. All notices shall be personally served or mailed, 

postage prepaid, to the following addresses, or to such other address as may be 

designated by written notice by the parties: 

Agency 

CONSULTANT 

Agency Secretary 

Rex Halverson and Associates, LLC 

Redevelopment Agency of the 1201 K Street, Suite 970 

City of Watsonville Sacramento, CA 95814 

275 Main Street, Suite 400 (916) 444-0015 

Watsonville, CA 95076 

(831) 768-3040 

/// 

/// 

/// 


6/1/2011 3:07:35 PM 


WITNESS THE EXECUTION HEREOF, on the day and year first hereinabove 

written. 

AGENCY 

REDEVELOPMENT AGENCY OF THE 


CONSULTANT 

By: ________________________________ 

Carlos J. Palacios, Executive Director 

By: __________________________ 

ATTEST: 

By ______________________________ 


APPROVED AS TO FORM: 

By______________________________ 



6/1/2011 3:07:35 PM 


EXHIBIT "A" 

SCOPE OF SERVICES 

The scope of services is as follows: 

1. Feasibility Analysis – Consultant and staff shall determine if a renewed Enterprise 

Zone is feasible under the requirements set out in the yet to be released workbook 

as published by the State Housing and Community Development Department (HCD) 

or successor agency. 

2. Preparation of Application – Consultant shall assist staff with the preparation, 

organization and development of a quality application based on the guidelines set 

out in afore mentioned workbook. 

3. Preparation of Marketing Plan – Consultant will assist staff in developing an EZ 

marketing program largely based on Watsonville’s Economic Development Strategy 

if require by HCD. 

4. After Submittal Representation – Consultant shall assist staff with interactions with 

HCD Staff as necessary. 

5. Transition from Conditional to Permanent Designation – Should Watsonville’s 

application proceed from application to conditional designation, consultant shall 

assist staff with any steps required by HCD to move the application from conditional 

to permanent. 


6/1/2011 3:07:35 PM 


EXHIBIT "B" 

SCHEDULE OF PERFORMANCE 

Services shall commence immediately upon execution of this Agreement. All 

services performed under the provisions of this Agreement shall be completed in 

accordance with the following schedule: 

Due to the lack of a current workbook from the State Housing and Community 

Development Department (HCD), staff and consultant shall agree upon a schedule of 

performance after the said workbook is released. The consultant agrees to perform in such 

a manner as to allow Watsonville to submit a completed application on or before any 

deadline set out by HCD. No work shall proceed nor shall any payment be rendered until 

Agency staff issues a notice to proceed to the Consultant. 


6/1/2011 3:07:35 PM 


EXHIBIT "C" 

COMPENSATION 

a. Total Compensation. The total obligation of Agency under this Agreement shall 

not exceed $85,000. 

b. Basis for Payment. Payment(s) to Consultant for services performed under this 

contract shall be made as follows and shall include payment for reimbursable expenses: 

Consultant shall submit an itemized invoice for all time and materials each month once a 

notice to proceed has been issued by Agency staff. 

c. Payment Request. Consultant shall submit a request for payment for services on 

a monthly basis by letter to Executive Director, or said Director's designated representative. 

Such request for payment shall cover the preceding monthly period during the term hereof, 

shall note the Agency's purchase order number for this contract, shall contain a detailed 

listing of the total number of items or tasks or hours for which payment is requested, the 

individual dates on which such services were rendered, and invoices for reimbursable 

expenses, if any. Upon receipt in the Office of Executive Director of said payment request, 

Executive Director shall cause payment to be initiated to Consultant for appropriate 

compensation. 


6/1/2011 3:07:35 PM 


CITY COUNCIL/REDEV #8.2 (a) 


Joint City Council/Redevelopment Agency 



TO: 

FROM: 

SUBJECT: 

Carlos J. Palacios, City Manager/Executive Director 

Jan Davison, Redevelopment Director 

Kurt Overmeyer, Economic Development Manager 

Approval of Memorandum of Understanding and Support 

Letter for California Sunshine Regional Center for EB-5 Visa 

Investment Program 

AGENDA ITEM: June 14, 2011 City Council/Agency 


It is recommended that the City Council and the Agency authorize the City Manager/Executive 

Director to execute a support letter for California Sunshine Regional Center (CSRC) and 

authorize the City Manager/Executive Director to execute a Memorandum of Understanding 

with CSRC in order for Watsonville to be eligible for investment from the EB-5 Visa program. 

DISCUSSION: 

The United States Citizen and Immigration Services (USCIS) Department of the Department of 

Homeland Security has developed a Visa program allowing foreign nationals to receive a 

permanent work Visa by making a substantial investment in the United States. This special 

Visa is known as an EB-5 Visa. This program has been utilized in many areas of the United 

States to spur investment. The program requires that an investor invest at least $1,000,000 

U.S. dollars in a job creating activity that creates a minimum of 10 permanent jobs in order to 

receive an EB-5 Visa. However, the law provides that an area of “targeted employment” 

allows in investor to invest as little as $500,000 to receive an EB-5 Visa. An area of targeted 

employment is an area that has a rate of unemployment that exceeds 150% of the state 

unemployment rate. Watsonville currently qualifies as a targeted employment area, as all of 


Kurt Overmeyer 6/1/2011 5:24:48 PM 

M:\RAHD\AGENDA\2011\6-14-2011\EB-5\EB-5 Regional Center Support__Revised.doc

the Watsonville Census Tracts have current unemployment rates in excess of 150% of the 

state average. 

The funds generated from EB-5 investments can be used in remarkably flexible ways. Funds 

can be used for infrastructure projects, direct investment in buildings, investment in business 

ventures, investment in parking structures, and any other type of investment that has the ability 

to create 10 jobs per $500,000 invested. 

In order to access the funds from an EB-5 investment group, a city or county must be a part of 

a “Regional Center” that has created an investment pool from foreign nationals seeking an EB- 

5 Visa. Currently, there is no regional center that includes Santa Cruz County. The California 

Sunshine Regional Center (CSRC) is being formed to fill that gap. The California Sunshine 

Regional Center is in the process of developing an application to the USCIS to be the 

designated regional center for Santa Cruz, Merced, Santa Clara, Alameda, Contra Costa and 

San Joaquin Counties. In order to receive designation, the proposed regional center must 

receive support from local jurisdictions that have a substantial need for investments in job 

creating activities. As such, the California Sunshine Regional Center has asked that 

Watsonville be one of the jurisdictions in support of their application. The California Sunshine 

Regional Center’s current draft application includes a number of specific projects in 

Watsonville, including the Sakata Lane Business Center, the former Indalux manufacturing 

facility, Manabe-Ow industrial park, unspecified Downtown Watsonville projects and 

unspecified investment in broadband construction projects in Watsonville. 

A provision in the current EB-5 law allows jobs that are created as an indirect result of 

investment to be counted as jobs created by the program. This provision is a pilot program 

and is currently scheduled to sunset in September of 2012. CSRC is requesting that the City 

of Watsonville support this application now so that investors may be able to use these relaxed 

rules for counting job creation prior to the scheduled sunset of the current pilot program. This 

will make it easier for Watsonville based projects to receive funding through the EB-5 program. 

The California Sunshine Regional Center is also being supported by the City of San Pablo 

which also has several job-creating projects that are potentially ready to proceed. The CSRC 

is likely to add projects and local jurisdictions as their application proceeds and after the 

application is approved. In order to receive any funding from the program, participating 

jurisdictions must execute a Memorandum of Understanding with the regional center. Being 

an early supporter and having specific Watsonville projects identified in the application to 

USCIS will make it more likely that the projects in the city receive funding. The projects 

specified in the MOU are not guaranteed funding under this program, and other projects within 

Watsonville will be eligible for funding on a case-by-case basis depending on their size and 

viability. City Council will have an opportunity to support additional projects for funding in the 

future and as each project is considered for funding the City Council will have the opportunity 

participate in the joint venture agreement with CSRC and the project proponent. This does 

not, in any way, require that the City be an applicant or financially participate in any project, it 

simply requires that the City authorize a project to be considered for EB-5 funding. 




This program is another tool that the City of Watsonville can use to attract business, construct 

vital infrastructure or address conditions of blight throughout the city. Participating does not 

guarantee funding for projects, but not participating assures no funding through this program. 

The MOU does not obligate the City of Watsonville to anything other than to be a supporter of 

the California Sunshine Regional Center. Additionally, the City will be obligated to keep 

projects and project details confidential (including terms of specific real estate negotiations and 

proprietary business and trade information submitted) for those entities seeking funding prior to 

and during investment and carries no direct fiscal impacts. However, the CSRC group is 

expecting that Watsonville projects will account for $25 to $50 million in direct investment from 

the EB-5 Visa program. 

STRATEGIC PLAN: 

This project is consistent with the Strategic Plan Goal of Sustainable Economic Development 

and is consistent with the Agency’s Five Year Implementation Plan. 


No direct fiscal impact. The program could result in substantial new investment in Watsonville 

that would have a long term positive impact on City revenue and a long term positive impact on 

employment rates. Given the current financial constraints of our Agency, this simply is another 

important tool that can be used to further our economic development efforts. 

ALTERNATIVES: 

City Council and Agency could decide to not participate in the California Sunshine Regional 

Center. This action is not recommended as it would reduce our ability to access EB-5 Visa 

funding via this Regional Center. 

ATTACHMENTS: 

1. Draft California Sunshine Regional Center Application 

2. Regional Center Principals Resumes 

cc: 

City Attorney/Agency Counsel 




California Sunshine 

Regional Center 

Prepared by: 

Lisa Li 

May 6th, 2011 

ATTACHMENT 1 


Table of Contents 

Mission Statement of the California Sunshine Regional Center (CSRC) ……………………………….…………… 2 

Defining the Regional Center’s Geographic Area ……………………………………………………………………..……… 3 

Santa Cruz County’s Targeted Employment Area (TEA) – Watsonville …………………………..………………… 4 

Scope of Proposed Investment Project …………………………………………………………………………………………… 6 

Brief introduction of selected proposed investment projects in Watsonville, CA 

Brief introduction of selected proposed investment projects in San Pablo, CA 

CSRC’s Organization and Administration …………………………………………………………………………………….… 10 

Minimum Investment Amount and TEA Eligibility 

Evidence of Employment Creation and Econometrics 

Ownership of the CSRC 

Management of CSRC 

Advisors ……………………………………………………………………………………………………………………..………………… 14 

Marketing …………………………………………………………………………………………………………..………………………… 15 

Investment structure …………………………………………………………………………………….……………………………… 17 

Investment Documents ………………………………………………………………………………………………………………... 17 

Compliance Responsibilities ……………………………………………………………………….………………………………... 18 

Conclusion ……………………………………………………………………………………………………………………….……..……. 20 

California Sunshine Regional Center (CSRC) 

1 

ATTACHMENT 1 


Mission Statement of the California Sunshine Regional Center 

The Mission of the California Sunshine Regional Center (CSRC) is to bring trade and industry development to 

economically challenged areas of Alameda, Contra Costa, Merced, San Joaquin, Santa Clara and Santa Cruz 

Counties by offering socially responsible investments to the global community of “high net worth individuals”. 

By providing critical investment capital to the emerging pipeline of socially-responsible business and projects in 

Alameda, Contra Costa, Merced, San Joaquin, Santa Clara and Santa Cruz Counties and securing market rates of 

return for EB-5 investors, the CSRC will create jobs for those in need, increase funding opportunities in a tight 

credit market and help revitalize historically distressed communities. 


2 

ATTACHMENT 1 


Defining the Regional Center’s Geographic Area 

Located on eastern side of the San Francisco Bay and northern side of the Monterey Bay, Alameda, Contra Costa, 

Merced, San Joaquin, Santa Clara and Santa Cruz Counties cover approximately 6,523 square miles. Covered 

regions are generally divided into “East Bay”, “South Bay”, and “Central Valley” by residents. The covered 

regions encompass over 100 cities or towns and about 5.4 million residents. With connection to a series of 

bridges and freeways, East Bay, South Bay and targeted areas in Central Valley can be easily accessed from the 

City of San Francisco. CSRC seeks to obtain official designation as an Immigrant Investor Pilot Program regional 

center in order to serve targeted employment areas within the East Bay, South Bay and Central Valley. 


3 

ATTACHMENT 1 


Santa Cruz County’s Targeted Employment Area (TEA) 

– Watsonville 

The shifting economy 

Over time, Watsonville has been known as the agricultural center of the Monterey Bay. The City is recognized 

for its strawberries, apples, cauliflower, broccoli and fresh cut flowers. Watsonville food processors freeze and 

distribute more fruits and vegetables than any other single area in the United States. While agriculture and food 

processing industry remains as the mainstay of Watsonville’s economic structure, the City’s economy has been 

diversified with an influx of electronics, manufacturing and service firms, in addition to the establishment of 

distribution centers for non-agricultural products. In these days, main industries in Watsonville are agriculture, 

construction and manufacturing. Driscoll’s Strawberries, Martinelli’s, California Giant, Monterey Mushrooms, 

Graniterock, Granite Construction, West Marine, Vendwize, Fox Racing Shox and many other leading companies 

in the agriculture, construction and manufacturing industries locate their companies’ headquarters in 

Watsonville. 

At start of the shifting economy, Watsonville has been benefited a lot from the diversity of industries; however 

the recession and its aftermath have nailed Watsonville hard. A big hit has strike on to the manufacturing and 

agriculture and particularly construction. 

Unemployment 

Watsonville has been terribly hard hit with the recession. The jobless rate in Santa Cruz stands at a worrisome 

11.6 percent, while Watsonville’s is a whopping 27.9 percent. Since Watsonville has more blue-collar jobs, it has 

suffered more than Santa Cruz ,and which its trend can be played out on a national scale. In October 2010, 

Market Watch reported that national unemployment was 4.5 percent for college graduates, 10.8 percent for 

high school grads and 14.3 percent for those without a diploma. 


4 

ATTACHMENT 1 


Watsonville’s Opportunities 

Despite the high unemployment rate in Watsonville (the targeted employment area), there is a solid basis for 

expecting investor success. 

West Marine Inc. --- Headquartered in Watsonville, CA, is internationally known for all things related to 

boating. As of January 2, 2010, West Marine has offered its products through 327 company operated 

stores in 38 states, Puerto Rico and Canada. 

RV’s Computers --- Ricardo Rocha, the computer expert and owner of RV’s Computer, has provided 

quality proven IT expertise in Watsonville, CA for over 47 years with the supports of the local community. 

Annieglass --- A woman-owned creative business in Watsonville, CA. Originally a 400 square feet studio 

is now grown into a manufacturing facility of more than 15,000 square feet employing with 30 full time 

employees employed and opportunities for resident artists provided. Annieglass handcrafts more than 

80,000 plates, bowls, serving dishes and decorative accessories annually. 

Watsonville’s history is rich in agriculture and food processing, but the economy of this City is constantly 

diversifying and growing. Non-agricultural sectors have grown to include design, materials, manufacturing, 

electronics and service firms. 

The City of Watsonville and the surrounding area has a workforce that can meet almost any businesses 

needs. From engineers to programmers, also the skilled labor force in our area to meet the needs of the most 

demanding high skilled employers. 

With the resources of Silicon Valley and a lower cost structure, Santa Cruz-Watsonville offers a location in one of 

the most dynamic and diverse economies in the United States. Foreign investors seeking opportunities in the 

TEA will find a wide range of choices among established industries. 


5 

ATTACHMENT 1 


Scope of Proposed Investment Project 

California Sunshine Regional Center is prepared to assist foreign investors with investment objectives in 

commercial real estate industry. The 95 gross-acre Manabe-Ow Business Park (MOBP) in Watsonville, CA and 16 

acres Circle S Area Redevelopment Project in San Pablo, CA, and along with other potential developments in 

Watsonville, CA and San Pablo, CA are proposed to be listed as highlighted projects on CSRC’s application of 

seeking USCIS’s designation as a regional center. 

Brief introduction of selected proposed investment projects in Watsonville, CA 

Manabe-Ow Business Park (MOBP) Specific Plan 

The 95 gross-acre Manabe-Ow Business Park (MOBP) Specific Plan is anticipated to be the primary new 

employment and economic development area in the City of Watsonville over the next 25 years. Within the 

commercial areas, 61 gross-acres of the Business Park are designed as a series of flex-use buildings that can 

readily adapt to changing local and regional market conditions. Business Park setting is envisioned to support 

the needs of existing and future local and regional businesses, from corporate headquarters to small light 

industrial and manufacturing start-ups. It is estimated to produce 2100 new jobs through completion of the 

project. A small retail center up to 25,000 square feet is anticipated to be located adjacent to Ohlone Parkway 

that provides neighborhood retail convenience services to both the Business Park and adjacent neighborhoods. 

Workforce housing built at a density up to 14 dwelling units per net developable acre is being considered to 

locate on the northeast corner of the project site. The property may also support alternative projects that 

supply jobs, sic as live/work housing, or assisted living projects. 


6 

ATTACHMENT 1 


Jennings Industrial Park 

Jennings Industrial Park is roughly 25 net acres adjacent to the north edge of the Watsonville Municipal Airport. 

The project is home to the new international headquarters of Nordic Naturals, a fish oil supplement company 

that employs roughly 180 people in Watsonville. The project is constrained by access. Its primary access is via 

Manfre Road, a county road that is narrow and winding. All other possible routes cross one of the airports’ two 

runway flight paths. There is capacity remaining in the part to build roughly 200K square feet of additional 

building which would provide employment for up to 200 people. 

25 Sakata Lane 

Sakata Lane is 9.4 net acres of developable land adjacent to the Pajaro River. The site is constrained in that was 

formerly the bus depot for the regional transit agency. The 150K square feet building built in 1987 by the transit 

district was irreparably damaged in the 1898 Loma Prieta Earthquake. This building has become a palate for 

graffiti and an attractive nuisance for vagrants. The property has a PG&E substation adjacent to the property 

and would be able to receive PG&E’s lowest possible rates. The site has infrastructure and there is some latent 

demand for the property, but at the current time no development has taken place largely due to the existence 

of the derelict transit building. The developer estimates that with an investment of as little as $2MM the project 

could come to fruition. The project is entitled and even has approved plans for an 85K square feet building as 

phase 1 of the development plan. 

Indalux 

Indalux was a manufacturer of extruded aluminum window frames. The operated in Watsonville from the late 

50’s to the early part of the 2000’s. The 7.3 acre site is constrained by environmental conditions created by the 

former occupant. The site is in the process of being cleaned up but the owners believe that the functionally 

obsolete buildings on the site have residual value. In order to overcome this problem, city staff hopes to rezone 

the site to accommodate freeway serving retail uses and hotels. The site is on the main freeway exit to the 

beach resorts near Watsonville and several retail developers have expressed interest in the site. With a modest 

investment, the site could be cleared and developed into a hotel with other tourist serving retail options. It 


7 

ATTACHMENT 1 


could also become home to an outlet mall or other strip retail center. The project would create between 50 and 

100 jobs depending on the type of development. 

Downtown Watsonville 

Downtown Watsonville is home to many beautiful historic buildings. The downtown is reminiscent of a bustling 

past and has remarkable potential. Some of the buildings were built by famous Victorian period architect, 

William Weeks – famous for designing the “Painted Ladies” in San Francisco as well as many Victorian period 

buildings throughout California. Unfortunately, Downtown has suffered from fractional property ownership, 

loss of adequate parking in certain areas and most strikingly, the loss of the retail anchor downtown. The City is 

taking steps to remedy many of the problems downtown, but investment is needed in public and private parking 

as well as in the building stock – some of which has not been properly maintained. There are a number of small 

investment opportunities in downtown that could result in immediate job growth and return on 

investment. These opportunities include assemblage of buildings for retail tenants, development of new 

buildings, development of private or public parking structures and development of entertainment venues. 

Mix-use Commercial and Residential Complex Development 

CSRC will also recruit international private sectors that devoted to develop mix-use units to not only fits Santa- 

Cruz local markets, but also interest future overseas EB-5 investors and their families. 

Brief introduction of selected proposed investment projects in San Pablo, CA 

Circle S Project Area 

The Redevelopment Agency acquired the former Davis Lumberyard property, Chattleton Lane Homes, Salvation 

Army site, and the Circle S and Alvarado mobile home parks to be developed into a mixed-use project. Through 

community input, the mixed use concept will include housing, retail, entertainment and open space. The 

Redevelopment Agency of the City of San Pablo identified the Circle S project area as a priority 


8 

ATTACHMENT 1 


for redevelopment in the City. The Project area encompasses approximately 16 acres with land bordered by 

Church Lane, San Pablo Avenue, Vale Drive and Wildcat Creek. A 2.8 acre portion was sold for the construction 

of a new County Health Center. Circle S is conveniently located near I-80, Casino San Pablo, Doctors Medical 

Center and Contra Costa College. These locations draw over 2 million visitors per year. 

Mission Plaza - International Student Housing 

This 1.5 acre site consists of 4 total parcels surrounded by three major corridors. There are several businesses 

that are currently operating on-site. As a catalyst for the western side of the Avenue, this development 

opportunity is designed to create student housing for international students attending Contra Costa College and 

other colleges in the Bay Area. The project should consist of a freestanding mixed-use structure up to five 

stories in height. The square footage would be comprised of approximately 80 units and up to 15,000 square 

feet of commercial retail space. The units may range from 680 to 750 square feet in size and will contain two 

bedroom suites with full bathrooms for each suite. The project parking requirement would be 0.50 spaces per 

residential unit and up to 60 spaces for the commercial area. 

BNSF - Burlington Northern Santa Fe Site 

This is a 4+ acre industrial site. The site is ideal for industrial condominiums but is contaminated. The San Pablo 

Redevelopment Agency is working with DTSC (Department of Toxic and Substance Control) to prepare a cleanup 

work plan. The work plan is expected to be completed in 2011. 


9 

ATTACHMENT 1 


CSRC’s Organization and Administration 

Minimum Investment Amount and TEA Eligibility 

California Sunshine Regional Center (CSRC) understands that foreign nationals participating in investment 

opportunities within the CSRC through designated partnerships are required to demonstrate a personal 

investment of $1 million dollars into the new commercial enterprise (CSRC Partnership), except the minimum 

investment is lowered to $500,000 if the investment is located in a “targeted employment area” (TEA). 

The geographic boundaries, which define the scope of the CSRC, includes both TEA and non-TEA areas. Working 

with the assistance of the local government of Watsonville and the State of California, CSRC will provide the 

USCIS with a letter from the Employment Development Department (EDD) identifying the project specific census 

tract and unemployment calculations to determine TEA qualifications and therefore eligibility for a reduced 

minimum investment threshold of $500,000 per investor. 

This government TEA letter will be provided to each CSRC partnership and submitted in the Form I-526 Petition 

for all corresponding immigrant investors within that Partnership. 

Evidence of Employment Creation and Econometrics 

The Act requires that the applicant demonstrate the new commercial enterprises has resulted in the creation of 

not fewer than 10 full-time jobs or a comprehensive business showing the future creation of these jobs. 

For each investment project approved by the Regional Center, the partnership will obtain and provide to the 

service (as part of the I-526 Petitions) a comprehensive econometrics report using the IMPLAN model or RIMS II 

model. 


10 

ATTACHMENT 1 


Ownership of the CSRC 

California Sunshine Regional Center (CSRC) shall operate as a limited liability Company (LLC), organized pursuant 

to the laws of the state of California, to serve as the principal agent to operate the CSRC and to promote 

investment and lawful business opportunities through the CSRC. 

The ownership of the CSRD is as follow: 

Member Name Place of Residence Office address 

Lisa Li Daly City, California P.O. Box 3306, Daly City, CA 94015 

Xiaojun Sun China Shanghai 

Management of CSRC 

Management of CSRC operations will be the direct responsibility of the ownership supplemented by additional 

administrative staff. The below chart describes the name of the managers, their respective roles in management, 

and their professional background. 

Name CSRC Role Professional Background 

Lisa Li 

Co-Managing Partner 

General Manager 

Ms. Li is originated from Shanghai, China. Ms. Li 

has been living in the San Francisco Bay Area for 

over ten years and she is very familiar with the 

local real estate market. Ms. Li has been working 

in the construction field for years and she has 

been the construction project manager of a local 

construction firm with focus in institutional and 

commercial building constructions for more than 

five years. Moreover, Ms. Li has full 

understanding of the EB-5 investment program 

and has been worked on the EB-5 program for a 


11 

ATTACHMENT 1 


long time. Ms. Li has strong communication skills 

and able to maintain tight relationships with local 

governments, developers, and future investors. 

Guy Spencer 

Houston 


Finance and Fund 

Management 

Mr. Spencer obtained both his B.S. in Business 

Administration and an MBA from St. Mary’s 

College in Moraga, CA. Mr. Spencer has over 

thirty years of practical experience in sales, 

leasing, construction, financing, entitlement and 

permitting of real property, government affairs 

and operating a business enterprise. In the past 

years, Mr. Spencer has served as a member of the 

California State Legislature, Vice-Chair of the 

Transportation Committee and was directly 

involved with issues relating to roads, transit and 

rail. For seven years, Mr. Spencer was selected to 

be the Mayor of the City of Dublin, CA and 

throughout those years Mr. Spencer gained 

extensive experiences in local government and 

working with county, city, special districts and 

community organizations. In addition, Mr. 

Spencer also has experience in print, radio and 

television media as part of public relations and 

constituent outreach. 

Gil Keinan 


Finance and Fund 

Management, 

Acquisitions 

Mr. Keinan completed his undergraduate 

education in Germany and United Kingdom, and 

pursued Master Certification in hotel management 

from S.C. Johnson Graduate School of 

Management of University of Cornell as well as an 

Executive MBA with focus in finance and strategic 

management from University of San Francisco. 


12 

ATTACHMENT 1 


Mr. Keinan started off his career in the hotel 

industry and he has been a results-focused, 

dedicated manager in leading luxury hotel groups 

for over eleven years. His progressive 

international leadership experience is 

irreplaceable. Mr. Keinan is also a founder and 

CEO of Iswipe Co., a financial services company in 

San Francisco. In Iswipe Co., Mr. Keinan performs 

core leadership role in start-up operation, securing 

capital investors and developed long-term 

marketing strategy to drive new business 

development. 

Clarabelle 

Pong 


Architectural 

Development 

Assistant ; Operations 

& Administration 

Ms. Pong spent her early life in Hong Kong, and 

received B.A. with focus in architecture and 

sustainable design from the University of 

California, Berkeley. Ms. Pong has been working 

at different San Francisco based architectural, 

design and construction firms since graduated. 

Ms. Pong has become LEED Green Associate from 

USGBC in December 2010. 


13 

ATTACHMENT 1 


Advisors 

Tsao-Wu, Chow & Yee LLP (Law Group) www.tsaochow.com 

Tsao-Wu, Chow & Yee LLP is an international law firm with five offices worldwide. They have three 

offices in California, one in China, and one in Vietnam. They have been providing a broad spectrum of 

transactional and litigation services to their individual and corporate clients for over 30 years. The firm’s 

practice areas include complex business litigation matters, intellectual property, immigration, real estate 

and construction litigation, general business transactions, estate planning and trust, and all others. 

CSRC will form a strategic alliance with reputable real estate and economic development advisory firm in the 

near future, to support the success and growth of target companies benefitting from EB-5 investments. This 

partnership will assure capital growth and job creation. The ideal alliance advisory firm shall be comprised of 

principals who have successfully operated and created value in both private equity back and public companies, 

completed considerable billions of private transactions, has extended experience of operations, investment 

banking, lending, audit and executing transactions (management buyouts, consolidations, ESOPs, turnaround), 

as well as establishing debt and equity co-investment financing source. 


14 

ATTACHMENT 1 


Marketing 

To maximize its potential to improve regional productivity, create jobs, and increase domestic capital 

investment within the defined geographic area, California Sunshine Regional Center (CSRC) will work with local 

governments of the selected counties in East Bay, South Bay and Central Valley to identify and define the 

specific investment projects suitable for foreign investment, and CSRC will work with international agents and 

brokers to identify potential foreign investors interested in the projects within the selected counties in East Bay, 

South Bay and Central Valley. 

Marketing California Sunshine Regional Center to East Bay, South Bay and Central Valley 

California Sunshine Regional Center management plans to work closely with the targeted cities’ governments 

and their council members in East Bay, South Bay and Central Valley. The CSRC will encourage local government 

to identify and develop appropriate projects for the EB-5 program. This partnership will help design projects 

creating the greatest return for local communities while enhancing the Regional Center’s capacity to meet the 

goals of the Act and the Immigration Service. 

Promotion/Marketing of Investment Opportunities to Foreign Investors 

The management of the CSRC will promote investment opportunities to qualified foreign nationals in a variety of 

ways including: 

1. Web Site 

The CSRC will develop and deploy a web site that describes CSRC’s scope & goals, and promotes the 

immigrant investor program by providing EB-5 investment program information, law and regulation. The 

CSRC’s website will also provide links to the web pages of the targeted projects, local governments and 

business resources. 


15 

ATTACHMENT 1 


2. American Immigration Lawyers Association 

The CSRC will promote investment opportunities to qualified foreign nationals through the American 

Immigration Lawyers Association (AILA), the national association of over 10,000 attorneys and law 

professors who practice and teach immigration law. CSRC management will conduct education and 

outreach to AILA lawyers making them aware of our programs and investment opportunities which may 

be interested to their clients. 

3. Overseas Direct Marketing 

The CSRC anticipates marketing EB-5 investment opportunities in Asia. The marketing efforts will take 

the form of foreign country private group connections, agents, web site and print media. 

The CSRC is going to work hand in hand with Artisan Business Group, Inc., a EB-5 investment advisory 

and Consultant Company, to assist Chinese trade missions and government delegations to the U.S. The 

Artisan Business Group, Inc. is a leading authority of the U.S. EB-5 investment projects that markets and 

promotes in China and Asia. The Group operates a EB-5 China Marketing and Field Support Center with 

staff in Guangzhou, Nanjing, Shenzhen and Beijing. 

The CSRC has already connected over 20 interested private sectors to be future limited partners. The 

CSRC will employ proven marketing methods such as prints, radio, and television advertising; internet 

targeted marketing through over designated brokers, who had over 200 branches throughout China, to 

promote the EB-5 investment program. 

California Sunshine Regional Center Market Positioning 

Foreign national investors have several global investment options. As a result, it is important that the California 

Sunshine Regional Center be able to differentiate itself as a desirable investment option. This will be 

accomplished by providing a competitive return on funds, portfolio investment options, and turn-key business 

services and resources. The CSRC will further differentiate itself by helping to network project principals to the 

extensive resources of the East Bay, South Bay and Central Valley and by providing social services such as 

relocation assistance, real estate services, information regarding schools, social and cultural orientation, child 

care assistance, and even, when necessary, an initial level of concierge services to investors and their families. 


16 

ATTACHMENT 1 


Investment structure 

The CSRC will organize every EB-5 investment opportunity using a traditional General Partner/Limited Partner 

structure, which follows the Uniform Partnership Act. The General Partner for each partnership will be CSRC, 

with foreign investors seeking an EB-5 immigrant visa as limited partners. Each EB-5 investment in the 

partnership will constitute an investment in a “new commercial enterprise” required by 8 C.F.R. 204.6(h). 

To illustrate this investment structure: ( Sample) 

Manabe-Ow Business Park project is to be constructed through the CSRC and required $25 

million in equity capital to create 500 new jobs (direct/indirect). CSRC would require the 

creation of a limited partnership, in this case hypothetically named “CSRC Manabe-Ow, LP”, 

which would allow 50 immigrant investors. Once fully subscribed, the partnership would be 

closed to further EB-5 investments. 

CSRC Manabe-Ow Business Park Project 

500 new jobs forecasted 

$ 25 million capital needed 

CSRC Manabe-Ow, LP 

General Partner-CSRC 

Limited Partner/Investors 

o Admit only 50 immigrant investors 

o Raise $25 million 

Investment Documents 

CSRC will require each investor in a CSRC Partnership to provide a copy of the required investment and 

partnership agreements for each EB-5 investment. As required for Form I-526 submission to the USCIS, the 

CSRC will supply evidence that the investor is engaging in the day to day operation of the business or policy 

formation. A signed partnership agreement will satisfy this requirement. However, the CSRC shall expect 

participating investors to submit (1) a Partnership Agreement, (2) a Confidential Private placement Offering, and 

(3) Escrow Agreements. 

Citi bank of San Francisco, CA will act as CSRC’s escrow agent. Executed documents will be submitted to the 

USCIS as part of the larger form I-526 Petition. 


17 

ATTACHMENT 1 


Compliance Responsibilities 

In order to maintain the validity of its approval and designation, 8 CFR 204.6(m)(6) requires that an approved 

regional center must promote economic growth, including improving regional productivity, creating jobs, and 

increasing domestic capital investment. The CSRC will maintain records, data and information on a quarterly 

basis and report to USCIS upon request as follows: 

1. The principal official, and point of contact, responsible for the normal operation management and 

administration of the regional center: 

The CSRC point of contact shall be Lisa Li (General Manager). 

She can be reached at Tel: (415)-279-0482, or P.O. Box 3306, Daly City, CA 94015. 

2. Procedures for conducting alien investor due diligence regarding source of capital and the alien 

investor’s ability to fully invest the requisite amount of capital: 

Each prospective investor will be required to submit a completed suitability 

questionnaire and provide financial records and related documents required to 

demonstrate financial ability and path/source of funds. This information will initially be 

screened by our overseas agents then reviewed by the immigration lawyer. 

3. Procedures for evaluation, oversight and follow-up of proposed alien investor commercial activities that 

are intended to create direct and/ or indirect jobs through qualifying EB-5 capital investments: 

Guy Spencer Houston (co-manager) and Gil Keinan (co- manager) shall have primary 

management and oversight responsibilities for the commercial activities and 

investments of the partnerships in the CSRC’s targeted development projects. In 

exercising their responsibilities they will conduct regular site visits and meet with 

developers and related parties to document the progress of each project. 

4. Collecting, tracking and reporting vital operational statistics. 

Lisa Li (General manager) and Clarabelle Pong (Administrator) shall organize the below 

list of information: 

The name, date of birth, and alien registration number of each alien investor who makes 

an investment and files an EB-5/ I-626 petition with USCIS, specifying whether the 

petition was approved, denied, or withdrawn by the petitioner. 

The country of nationality of each alien investor who makes an investment and files an 

EB-5/ I-526 petition with USCIS. 

The city and state of residence of each alien investor who makes an investment and files 

an EB-5/ I-526 petition with USCIS. 


18 

ATTACHMENT 1 


The categories of business activity within the geographic boundaries of the CSRC that 

have received the alien investor’s capital, and in what amount. 

The names and locations of the each job creating commercial enterprise located within 

the geographic boundaries of the CSRC. 

The amounts of alien investor capital and the amounts of other domestic capital that 

have been invested together in each job creating commercial enterprises, with separate 

totals for each. 

The total aggregate number of approved EB-5 alien investor, I-526 petitions per Federal 

Fiscal Year to date make through the CSRC. 

The total aggregate number of approved EB-5 alien investor, I-829 petitions per Federal 

Fiscal Year to date through the CSRC. 

The total aggregate of EB-5 alien capital invested through the CSRC for each Federal 

Fiscal Year to date since approval and designation. 

The combined total aggregate of “new” direct and or indirect jobs created by EB-5 

investors through the CSRC for each Federal Fiscal Year to date since receiving approval 

and designation. 

If for any given Federal fiscal Year the CSRC does not have investors to report, an 

explanation for the inactivity along with a specific plan which details timelines and plans 

to actively promote the CSRC will be submitted and legitimate and viable alien investor 

will be recruited. 

USCIS will be notified within 30 days of the occurrence of any material change in the 

structure, operation, administration, focus, or activities relating the CSRC’s basis for its 

most recent designation and /or reaffirmation by USCIS. 

The total aggregate of EB-5 alien capital invested through the CSRC for each fiscal year. 


19 

ATTACHMENT 1 


Conclusion 

The California Sunshine Regional center has taken care to assemble a team of professionals that will provide 

each investment the greatest change of meeting EB-5 program objectives. 

In addition, local communities with targeted employment areas have embraced the CSRC as a superior 

opportunity, which not only to bring capital and jobs to deserving areas, but also to engage the interests of 

talented foreign entrepreneurs. 


20 

ATTACHMENT 1 


Guy Spencer Houston 

808 Beaver Creek Court, San Ramon, Ca. 94582 

Home: 925-828-8148 * Cell 925-487-5839 

Email: guyhouston@cal-gold.net 

Objective 

To obtain a position as Real Estate Property Manager that utilizes my experience in all 

facets of real estate, government affairs, operating a business enterprise as well as 

managing staff and independent consultants. 

Professional Summary 

Experienced real estate professional with over thirty years of practical experience in 

sales, leasing, construction, financing, entitlement and permitting of real property. Served 

as a member of the California State Legislature, Vice-Chair of the Transportation 

Committee and was directly involved with issues relating to roads, transit and rail. 

Managed staff and legislative agenda in Sacramento. Local government experience 

working with county, city, special districts and community organizations. Extensive 

experience in print, radio and television media as part of public relations and constituent 

outreach. 

Experience 

Valley Capital Realty & Mortgage, Broker-Owner, Dublin, Ca. 1986-present 

Full service real estate firm serving residential and commercial clients. 

- Residential and commercial brokerage. 

- Mortgage financing, construction loans. Origination, underwriting, processing 

and closing of real estate transactions. 

- Municipal permitting of real estate projects including tentative map, final 

map, building permits, development agreements, easements, coordination 

between utility providers. 

- Coordination of title and escrow services, appraiser and credit services. 

- Leasing of commercial property including management of tenant 

improvements. 

California Gold Advocacy Group, Governmental Affairs 2009-present 

- Variety of functions as pertains to business and government. 

- Facilitation and negotiation between business and governmental agencies. 

ATTACHMENT 2 


- Local and State Government- Engagement on all levels of government to 

achieve win-win solutions to business problems in the marketplace. Client 

based assistance with permitting, land-use, contract negotiations, project 

research and media relations. 

California Legislature, Member of State Assembly, 15 th District 2002-2008 

- Termed out in 2008. Served as Vice-Chair of the Assembly Transportation, 

Local Government, Labor and Jobs and Economic Development committees. 

- Primary focus of legislation was areas of school funding and infrastructure. 

- Negotiated $460 million increases in additional public school “equalization” 

funding. Established coalition groups for transportation funding, education 

funding, public safety advocacy and issues regarding the developmentally 

disabled. 

City of Dublin, California, Mayor 1994-2001 

Education 

- Managed growth and infrastructure issues in City of Dublin along the I680 

corridor. Negotiated financing of water, sewer, roads, transit, and waste 

expansion among neighboring jurisdictions. 

- Highlights: marketed city services to business, balanced budgets with 

elimination of city debt, strategic partnerships with local public schools. 

- Transportation oriented committee service: Alameda County Transit 

Authority, Tri-Valley Transportation Commission, Livermore-Amador Valley 

Transit Agency and the Local Agency Formation Commission. 

St. Mary’s College, Moraga – Masters in Business Administration 1987 

St. Mary’s College, Moraga – Bachelor of Science, Business Administration 1982 

Community Involvement 

Committed to community service; founder of the Tri-Valley Martin Luther King 

Breakfast to benefit the YMCA, Fundraising Chair for Tri-Valley Kaleidoscope 

benefitting Easter Seals and the developmentally disabled. 

ATTACHMENT 2 


GIL KEINAN, MBA 

553 17 th Avenue San Francisco, California, 94121 gilkeinan@aol.com 

GENERAL MANAGEMENT EXECUTIVE 

Results-focused, dedicated manager with 11+ years of progressive international leadership experience leading 

luxury hotels/hotel groups to exceptional performance, and a history of innovation and rapid career 

advancement. Full knowledge of all facets of the industry based on an extremely integrated background 

involving hands-on experience at every level for exclusive hotels and ownership properties. 

Business Development Start Ups/Turnarounds Account/Territory Optimization Team Leadership/Motivation 

Account/Territory Optimization Strategic Planning Customer Service Outsourcing Asset Management 

Process Improvement Technical Writing Deployment/Migrations Risk Management Union Relations 

Fluent in Hebrew, Spanish, and German. Basic knowledge of Arabic. 

PROFESSIONAL EXPERIENCE 

ENTREPRENEURIAL VENTURES 

1CS, LLC, dba FIRST CLASS SERVICE, San Francisco, California 2009-2011 

A privately-held outsourcing/offshoring operations service providing hotels with concierge and guest services. 

Director, Founder: Built new venture from start-up to full-scale operation generating $720K in annual revenue. 

Recruited and coached top-tier concierge team. Collaborated with a group of vendors to create a complex 

cloud-based VOIP call routing system. Oversaw 60 employees and 1 direct report managing quality control. 

 

 

 

Secured relations with key decision makers and led negotiations to the award of 10 large-dollar contracts. 

Expanded services within 3 months offering outsourcing calls from concierge, communications/operator, 

room service, guest services, reservations and engineering departments. 

Sold company to UK-based casino operator now providing services to 10,000+ clients at 20 casinos. 

ISWIPE.CO, San Francisco, California 2010-Present 

A financial services company providing a true digital wallet solution eliminating the need for carrying plastic. 

CEO, Founder: Core leadership role establishing start-up operation, securing capital investors, managing key 

client relationships and developing long-term marketing strategy to drive new business development. Oversee 

technical team accountable for product development in accordance with client specifications. 

 

 

Developed market–ready demo product within 7 months compared to an 18-month industry standard. 

Secured letter of interest from 5 out of 100 major retailers in the US. 

PROBONO ADVISORS, San Francisco, California 2010-Present 

A privately-held, non-profit organization management company. 

Chairperson: A non-profit organization comprised of professionals from a wide-range of industries providing 

consulting, assistance and support including a complimentary 1-hour session for select start-up enterprises and 

struggling new businesses. 

FOUR SEASONS HOTELS & RESORTS 2000-2009 

A Canadian-based international hotel management company and world leading operator of luxury hotels/resorts. 

Assistant Director of Rooms (Acting Director) Four Seasons Hotel & Residences, San Francisco, 

California (2007-2009) 

Managed all aspects of the rooms division and building operations namely front desk, valet services, 

reservations, housekeeping, laundry, engineering, security and residences. Supervised cross-functional staff of 

178 including 32 direct reports with managerial oversight. Designed and administered customer surveys, and 

ATTACHMENT 2 


eviewed AAA and Mobile ratings to further clarify customer expectations. Ensured compliance with all HOA 

bylaws. Requested to develop and foster relations with high-profile clients and corporate accounts. 

Gil Keinan Page 2. gilkeinan@aol.com 

Scope of accountability included staffing, contract negotiations, contractor management, budgeting, and cost 

control. 

 

 

 

Worked in cooperation with 14 contracting companies during renovations of rooms and corridor to 

successfully ensure completion of project in accordance with specifications and within a $9.5M budget 

Devised and applied upselling sales techniques that grew revenue by 250% within a 3-year period. 

Key player in the creation, development and launch of “Water the Seed”, an incentive program focused on 

large-dollar accounts. Result: Captured an additional $3M in new revenue. 

Front Office ManagerFour Seasons Resort Punta Mita, Nayarit, Mexico (2005-2007) 

Front Desk ManagerFour Seasons Resort Whistler, Whistler- Canada (2004-2005) 

Guest Services ManagerFour Seasons Resort Costa Rica, Costa Rica (2004) 

Hotel Asst. ManagerRegent Beverly Wilshire, Four Seasons Hotel, Los Angeles, California (2002-2004) 

SupervisorFour Seasons Hotel Berlin, Berlin, Germany (2001) 

Rapid promotion through a series of increasingly responsible management positions during a period of 

accelerated growth and global expansion to formulate new development plans and budgets, handle staffing 

problems and address customer-satisfaction issues. Managed 12 Department Heads and a total staff of 78 in 

departments supporting the front desk, concierge and guest services, PBX, residences, clubs and villas. 

 

 

 

Spearheaded opening of Residence Clubs, 8 new Residences Villas and 4 new Suites (15 keys) and 

credited with timely preparation of new ownership agreements, and corporate FF&E compliance. Result: All 

openings were successful and 3 months ahead of schedule securing an additional $450K in revenue. 

Elevated hotel management processes and captured significant financial improvements by upgrading 

system to OPERA, a state-of-the-art property management software. 

Led successful renegotiations for annual contracts and Union Collective Bargaining agreements. 

Awarded “Manager of the Month” for outstanding service in both 2005 and 2006. 

Previous Positions: Housekeeping Assistant Manager for Four Seasons Resort Palm Beach (2000-2001), and 

Front Office Associate for Sorat Hotel Spree Bogen Berlin (1998-1999). Details available upon request. 

EDUCATION AND PROFESSIONAL TRAINING 

Executive MBA, Major in Finance and Strategic Management Summa cum Lauda, 2010 

University of San Francisco, San Francisco, California 

Bachelor of Science in Hotel & Catering Management Magna cum Lauda, 2002 

University of Surrey, Guildford, Surrey, UK 

Associates Degree in Mathematics, English, Politics and Arts 

Hildegard Wegscheider Oberschule, Berlin, Germany 

Master Certification: Hotel Management 

University of Cornell - S.C. Johnson Graduate School of Management 

Certification: Sabre Booking Engine 

Highly computer literate in all office applications and hardware solution programs 

Working knowledge in mySQL, Access, PSP, PHP, Ruby on Rails, Java, HTML, C++ and Visual Basic 

PROFESSIONAL ORGANIZATIONS & AFFILIATIONS 

Berkeley Entrepreneurs Forum 

TechAviv 

Israeli Entrepreneurs and Founders Forum 

Baypay Forum 

Keiretsu Angel Network Forum ATTACHMENT 2 


San Francisco Convention and Visitors Bureau 

Chairman of Probono Advisors (www.probonoadvisors.org) 

ATTACHMENT 2 


Lisa Li 

70 Westdale Ave 

Daly city, CA 94015 

Phone: 415-279-0482 

Email: 

lisa.xinruili@gmail.com 

Ability: 

• Fluent in English and Mandarin speaking and written. 

• 7 years of experience providing Business Administration and finance control in 

Retail service center. 

• 4 Years of experience providing Construction Project Administration, devoting 

commercial and residential real estate developing. 

• Ability to resolve complex issues and win customer trust. 

• Listen attentively, solve problems creatively. 

Experience 

Project Manager 

06/2006 to 12/2010, Big bears Construction Inc. Daly city, CA 

 

 

 

 

 

 

 

 

. 

Outstanding ability to assemble an engineering and construction team for 

project controls, quality assurance, craft supervision, material expediting, and 

all other project administration including planning, scheduling, health and 

safety programs, and purchase agreement administration. 

Coordinate and communicate between field, designers and client. 

Handle various clients’ high-volume project inquiries, complaints; conduct site 

visiting to solve issues and to accomplish clients’ requirements. 

Estimated and created budgets for construction projects. 

Managed third party contractors including safety oversight, environmental 

design specification compliance, and similar construction specifications and 

requirements 

Locate resources for problem resolution and design best-option solutions. 

Conduct safety meeting training to new employees, handle employees 

weekly payroll. 

Handle supply store ordering, project monthly billing and payment 

extension/service requests. 

Store Manager Assistant & finance controller 

07/1999 to 06/2006 , A.T & Sons Inc, San Francisco, 

 

 

 

 

 

 

Work out entire merchandising, ordering and maintenance features along 

with necessary cash and inventory control. 

Carry out necessary measures for recruiting, training and coordinating, 

day to day supervision to one or more accounting functions, Ensured 

accuracy of compliance with accounting policies and procedures 

Assisted the COS in the preparation of budgets as necessary 

Take essential measures for coordinating particular events and promotions, 

Participant in local market enhancement program along with making 

advertising planning 

Formulate daily and weekly sales and activities reports. 

Education 

09/1992 to 07/1996, Shanghai Institute of Foreign Trade, Double Bachelor 

Degree of Business Management & Business English. 

ATTACHMENT 2 


CLARABELLE PONG, LEED GA clarabellepong@yahoo.com (925)-876-0719 

EDUCATION 

UC Berkeley Extension Completed in: Dec 2010 

Professional Program in Sustainable Design 

University of California, Berkeley Graduated in: Aug 2009 

Bachelor of Arts in Architecture 

California College of Arts Summer 2009 

Study Program in The Netherlands : Contemporary Dutch Architecture 

American Field Service (AFS - Germany) Sep 2003 - Jun 2004 

Student Cultural Exchange Program (Hong Kong to Germany) 

QUALIFICATIONS 

USGBC -- LEED Green Associate 

(Achieved in Dec 2010) 

Autodesk Training Center 

-- Revit I Certificate of Completion 

(Completed in Nov 2009) 

RELATED EXPERIENCE 

KB Design & Consulting, LLC., San Francisco, CA 

Architectural Assistant (Feb 2011- present) 

- Generate design schemes and construction documents using Chief Architect 

- Research on building materials and help finding corresponding building codes 

- Perform on-site measurements for existing building 

Big Bears Construction Inc., Daly City, CA 

Project Administrator/ Project Manager Assistant (Oct 2009- Jan 2011) 

- Prepared bid proposals, RFIs, submittals, as-built drawing and all other paper work during the whole construction phase 

- Assisted manager in project price estimating and on behalf of the company to attend construction meetings 

- Contacted vendors and manufacturers 

Tsui Design & Research Inc., Emeryville, CA 

Intern (Jun 2010- Oct 2010) 

- Researched on the culture and architecute of different indigenus tribes and on the green myths 

- Organized research findings; worked on photoshop and in-design layout for the World Architecture Reviews 

-- Dr. Eugene Tsui series 

- Participated in the hands-on construction of building Zero Energy Dwelling (ZED House) in Mount Shasta, CA 

RMW Architecture and Interiors, San Francisco, CA 

Intern (Feb 2009- May 2009) 

- Prepared construction documents & CAD detail drawings 

- Built physical model 

- Worked on site plans using Illustrator 

ACTIVITIES/ ASSOCIATION AFFLICTED 

Habitat for Humanity (East Bay) Volunteer (Since Mar 2010) 

American Institute of Architecture Students, UC Berkeley Active Member (Sep 2007 - May 2009) 

American Field Service (Hong Kong), Hong Kong Active Volunteer/ Student Cultural Ambassador (Since Sep 2004) 

SKILLS & INTERESTS 

Technical 

- AutoCAD, REVIT, Rhinoceros, MODO, Chief Architect 

- Adobe Photoshop, Illustrator, In-Design, Lightroom 

- MS Office - Word, Excel, Powerpoint , Outlook 

Language 

- Fluent in English, Cantonese, Mandarin 

- Actively learning German 

Interest 

- Film & digital photography; Arts 

- Travel; Cultural studies 

- Sustainable Living 

ATTACHMENT 2 


CITY COUNCIL/REDEV #8.2 (e)

CITY COUNCIL 8.2 (f) 

RESOLUTION NO. __________ (RA) 

RESOLUTION NO. __________ (CM) 

A JOINT RESOLUTION OF THE REDEVELOPMENT AGENCY AND CITY 

COUNCIL OF THE CITY OF WATSONVILLE APPROVING MEMORANDUM 

OF UNDERSTANDING FOR THE CALIFORNIA SUNSHINE REGIONAL 

CENTER (CSRC) IN ORDER FOR THE CITY OF WATSONVILLE TO BE 

ELIGIBLE FOR INVESTMENT FROM THE EB-5 VISA INVESTMENT 

PROGRAM AND AUTHORIZING AND DIRECTING THE EXECUTIVE 

DIRECTOR TO EXECUTE SAME 

BE IT RESOLVED BY THE REDEVELOPMENT AGENCY/CITY COUNCIL OF 

THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS: 

1. That the Memorandum of Understanding with the California Sunshine 

Regional Center (CSRC) in order for the City of Watsonville to be eligible for investment 

from the EB-5 Visa Investment Program, a copy of which is attached hereto and 

incorporated herein by this reference, is fair and equitable and is hereby ratified and 

approved. 

2. That the Executive Director/City Manager be and is hereby authorized and 

directed to execute Memorandum of Understanding for and on behalf of the Agency/City 

of Watsonville. 

************************************** 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\MOU with EB5 Visa Program.docx 

ri 6/9/2011 6:27:39 PM 

AJS ______ CJP ______ RAHD ______ 

1

MEMORANDUM OF UNDERSTANDING 

This Memorandum of Understanding (herein as “MoU”) is made on May 24, 2011 

between California Sunshine Regional Center LLC(herein as “CSRC”), The City of 

Watsonville and The Redevelopment Agency of the City of Watsonville (herein as 

“RDA”). 

The above stated Parties to this MoU agree to the following mutual promises and 

undertakings: 

Article 1: Identification of the Parties to Agreement 

Party 1 – California Sunshine Regional Center, LLC, P.O. Box 3306, Daily City, CA 

94015. 

Party 2 – The City of Watsonville, 275 Main Street, Suite 400, Watsonville, CA 95076. 

Party 3 – The Redevelopment Agency of the City of Watsonville, 250 Main Street, 


Article 2: Purpose and Scope of a Regional Center 

The Immigrant Investor Pilot Program (“Pilot Program”) was created by Section 610 of 

Public Law 102-395 (October 6, 1992) as a way to spur local developments, economic 

growths, and job creations while allowing foreign investors to obtain legal permanent 

resident status in the U.S. 

The Pilot Program, administered by US Citizenship and Immigration Services (USCIS), 

directs foreign investment into geographical areas with high unemployment rates in order 

to stimulate economic growth and revitalize underdeveloped local economies. Regional 

Centers are specific business entities designated to promote job creations within a defined 

geographic area. Regional Centers can be public or private entities, comprise entire cities 

or districts, and have very specific or very broad investment focuses. 

CSRC is looking to be a Regional Center that coordinates foreign investment within an 

area in compliance with the Pilot Program and the EB-5 statutory, regulatory and 

precedent decision framework. CSRC seeks to carry the responsibilities of promoting 

economic growth through increased export sales, improved regional productivity, job 

creation, and increased domestic capital investment. 

Article 3: Proposed Transaction 

Manabe-Ow Industrial Park 

1

According to the Manabe-Ow Business Park Specific Plan dated on Dec 2010, The 95 

gross-acre Manabe-Ow Business Park (MOBP) is anticipated to be the primary new 

employment and economic development area in the city of Watsonville. 

The Manabe-Ow business Park proposes the development of a flexible-use business park, 

a small retail center, and workforce housing units; it is a vision of a center filled with 

corporate headquarters, light industrial and manufacturing start-ups, retail commercial, 

housing, and open space. 

Jennings Industrial Park 

Jennings Industrial Park is roughly 25 net acres adjacent to the north edge of the 

Watsonville Municipal Airport. The project is home to the new international headquarters 

of Nordic Naturals, a fish oil supplement company that employs roughly 180 people in 

Watsonville. The project is constrained by access. Its primary access is via Manfre Road, 

a county road that is narrow and winding. All other possible routes cross one of the 

airports’ two runway flight paths. There is capacity remaining in the part to build roughly 

200K square feet of additional building which would provide employment for up to 200 

people. 

Sakata Lane Business Center 

Sakata Lane is 9.4 net acres of developable land adjacent to the Pajaro River. The site is 

constrained in that was formerly the bus depot for the regional transit agency. The 150K 

square feet building built in 1987 by the transit district was irreparably damaged in the 

1898 Loma Prieta Earthquake. This building has become a palate for graffiti and an 

attractive nuisance for vagrants. The property has a PG&E substation adjacent to the 

property and would be able to receive PG&E’s lowest possible rates. The site has 

infrastructure and there is some latent demand for the property, but at the current time no 

development has taken place largely due to the existence of the derelict transit building. 

The developer estimates that with an investment of as little as $2MM the project could 

come to fruition. The project is entitled and even has approved plans for an 85K square 

feet building as phase 1 of the development plan. This business center could have 

between 150 and 300 jobs at build out. 

Indalux Site 

Indalux was a manufacturer of extruded aluminum window frames. The operated in 

Watsonville from the late 50’s to the early part of the 2000’s. The 7.3 acre site is 

constrained by environmental conditions created by the former occupant. The site is in 

the process of being cleaned up but the owners believe that the functionally obsolete 

buildings on the site have residual value. In order to overcome this problem, city staff 

hopes to rezone the site to accommodate freeway serving retail uses and hotels. The site 

is on the main freeway exit to the beach resorts near Watsonville and several retail 

developers have expressed interest in the site. With a modest investment, the site could be 

cleared and developed into a hotel with other tourist serving retail options. It could also 

become home to an outlet mall or other strip retail center. The site could also be retasked 

as a new industrial project. The project would create between 50 and 100 jobs depending 

on the type of development. 

2

Downtown Investment 

Downtown Watsonville is home to many beautiful historic buildings. The downtown is 

reminiscent of a bustling past and has remarkable potential. Some of the buildings were 

built by famous Victorian period architect, William Weeks – famous for designing many 

Victorian period buildings throughout California. Unfortunately, Downtown has suffered 

from fractional property ownership, loss of adequate parking in certain areas and most 

strikingly, the loss of the retail anchor downtown. The City is taking steps to remedy 

many of the problems downtown, but investment is needed in public and private parking 

as well as in the building stock – some of which has not been properly maintained. There 

are a number of small investment opportunities in downtown that could result in 

immediate job growth and return on investment. These opportunities include assemblage 

of buildings for retail tenants, development of new buildings, development of private or 

public parking structures and development of entertainment venues. 

Broadband Infrastructure 

Watsonville’s current broadband infrastructure is insufficient for many potential users. 

Upgrading the broadband coming into Watsonville as well as the network within the City 

Limits could be a key to landing new companies. The City of Watsonville is currently 

part of the Monterey Bay Broadband Consortium (MBBC). The CSRC will fund projects 

as part of the MBBC that have a clear connection to job creation in Watsonville and 

Santa Cruz County. 

---------------------------------------------------------------------------------------------------------- 

To achieve building a thriving local economy, the City of Watsonville/RDA will help and 

guide the development of MOBP. The general understanding of how it is going to be 

accomplished is through job development, business retention, economic diversification, 

and etc. 

Aligned with that mission, CSRC has the necessary resources to help increase domestic 

capital investments by pooling together substantial investment funds from foreign 

investors. Equity funding from those third-party investors will be used to engage in real 

estate developments and constructions. On a need basis, constructions may include 

development of infrastructures, and commercial and residential real estate/housing 

projects. 

Furthermore, in compliance with the Pilot Program, CSRC will assume the responsibility 

of creating sustainable job opportunities and expansions in the City of Watsonville. With 

similar goals, it will be ideal for the City of Watsonville/RDA to have CSRC help with 

raising the necessary funds to support upcoming citywide projects. Based on the nature 

of the project, a long-term joint venture relationship between the City of 

Watsonville/RDA and CSRC is expected. 

Article 4: Roles and Responsibilities 

CSRC: 

3

• Santa Cruz County shall be listed as one of CSRC’s defined geographic areas on 

its application with the USCIS. 

• City of Watsonville/RDA projects described above shall be listed as the specific 

project on CSRC’s application seeking USCIS’s designation as a Regional 

Center. 

• CSRC shall promote the projects listed and recruit oversea investors and each 

qualifying investor shall invest at least $500,000. Upon USCIS’s approval of 

CSRC’s application, recruited investors will assume passive roles during the 

entire the investment process. 

• Total amount of investment and the number of necessary direct and indirect job 

creations will depend upon the result of a detailed economic analysis of the City 

of Watsonville or other party as directed by the City of Watsonville. 

City of Watsonville/RDA: 

• City of Watsonville/RDA agree to have CSRC take part or be involved in all of 

projects outlined above and other projects as agreed to by CSRC and the City of 

Watsonville/RDA. 

• City of Watsonville/RDA will assist CSRC in obtaining information regarding 

said projects, including, but not limited to, business plan, site plan, phasing costs, 

associated economic analysis, job creation data analysis, and construction plan. 

• As part of CSRC’s application with the USCIS, City of Watsonville shall also 

provide City of Watsonville’s General Introduction and Support Letter stating 

City’s willingness to have CSRC as a Regional Center for investment purposes. 

Article 5: Proposed Timeline 

The proposed timeline for projects will be determined on a case-by-case basis. As 

projects are ready to commence, CSRC, The City of Watsonville and the project 

proponent will determine what investment is needed and the timeframe for delivering 

employment in accordance to the USCIS guidelines. 

Article 6: Binding Effect 

The MOU describes the general conditions and arrangements for future cooperation 

between the parties. Except Articles 7 and 8, this MoU is not legally binding on the 

parties. The exact terms and conditions of this future cooperation will be negotiated in 

due course and laid down in contract. 

Article 7: Confidentiality Agreement 

4

The parties are in the process of negotiating a Joint Venture Agreement, whose purpose is 

to help boost the economic success of the City of Watsonville and ensure compliance 

with the USCIS’ Pilot Program. 

Pending the possible signing of a Joint Venture Agreement, all parties agree to hold in 

strict confidence all commercial and trade information exchanged and further, neither 

party shall act upon such information exchanged to the detriment of the other party, such 

obligation constituting a separate distinct right not dependent on the enforceability of this 

MoU. The Joint Venture Agreement Shall be signed by California Sunshine Regional 

Center and The City of Watsonville, failing which all parties are free to pursue other 

alternatives as they deem proper without any responsibility to the other party. 

Article 8: Governing Law 

This MoU shall be construed and enforced in accordance with the laws of the State of 

California, United States of America, without regards to its conflict of laws rules. 

The City of Watsonville 

_________________________________ 

By: Carlos J. Palacios, City Manager 

California Sunshine Regional Center, LLC 

__________________________________ 

By: Lisa Li, General Manager 

The Redevelopment Agency of the City of 

Watsonville: 

__________________________________ 

By: Carlos J. Palacios, Executive Director 

__________________________________ 

ATTEST: 

BY _______________________________ 


BY________________________________ 


5

CITY COUNCIL 4.2 

UNADOPTED 

MINUTES 

SPECIAL CITY COUNCIL MEETING 

May 17, 2011 

Corralitos Community Hall (Padres) 

5:20 P.M. 35 Browns Valley Road, Watsonville 

CONTENTS 


1.0 Roll Call 

2.0 Pledge of Allegiance 

3.0 Oral Communications 

7.1 Strategic Plan—SCOT/New 

Initiatives 


1.0 ROLL CALL 

Mayor Dodge, Mayor Pro Tempore Montesino, and Council Members Bersamin, Bilicich, 

Hurst, and Rios were present. Council Member Martinez was absent. 


3.0 ORAL COMMUNICATIONS FROM THE PUBLIC & CITY COUNCIL (None) 

7.0 OLD BUSINESS 

7.1 STRENGTHS CHALLENGES OPPORTUNITIES AND THREATS (SCOT) AND 

STRATEGIC PLAN NEW INITIATIVES 

(a) Presentations by Department Heads 

Council Members and City staff listed the strengths and challenges of the City. 

(b) 

(c) 

(d) 

(e) 

City Council Questions (None) 

City Council New Initiatives 

City Council ranked the new initiatives and gave their rankings to Assistant City 

Manager Tavantzis to score. 



Council Member Bersamin stated that the goal was to avoid layoffs. 

Mayor Pro Tempore Montesino asked that airport hangars rates be included in 

the fee study. 

(f) 

Ranking of New Initiatives 

Assistant City Manager Tavantzis presented the potential efficiencies/service 

reductions. The Council ranked each one as follows: 

Vol 59 Min-CC051711special.docx 

527


Community Development Department 

Potential Efficiencies/Reductions in Services 

Rank Efficiency Resources Needed Comments 

5 

5 

6 

6 

0 

Close counter on Wednesday 

afternoons. 

Eliminate duplicate permits and 

processes, when another agency in 

the county is already looking at the 

project, as in HazMat. 

Increase number of functions and 

permits that can be accomplished 

online and by fax. 

Increase use of ―GreenVue‖ by 

design professionals. 

Place Kiosk in Lobby so public could 

fill out and print their applications 

(instead of doing it by hand). 

528 

Staff Funding 

None None Would allow 

staff to complete 

paperwork for 

projects being 

processed and 

would result in 

faster service 

delivery 

None 

Some loss 

of fees 

Would result in 

better service 

and higher 

Economic 

Development 

opportunities 

Med Minimal Would provide 

higher level of 

customer 

service 

Low None Would increase 

customer 

service, reduce 

paper usage and 

provide greater 

customer 

satisfaction. 

Low $20,000? 

General 

Fund 

Would reduce 

staff time 

needed to 

process 

applications, 

providing better 

customer 

service. 

Fire Department 

Potential Efficiencies/Reductions in Service 


0 

4 

6 

4 

Maintain 30 active line staff.—Bring 

back to Council. 

Charge for lift assists for residential 

care facilities. 

Staff Funding 

Low $110,000 

General 

Fund 

Would lower 

overtime costs. 

Med No cost Revenue 

generating. 

Eliminate non-critical tasks. None No cost Would free up 

crews for higher 

priority calls and 

tasks. 

Provide comprehensive respiratory 

protection program for private 

High $30,000 

General 

Costs would be 

re-gained

? 

0 

5 

industry.—Bring back to Council Fund through 

generated 

revenue from 

private industry. 

Explore outsourcing mechanical 

maintenance on apparatus. 

(possible: Central Fire) 

Complete energy audit through 

Citywide efforts. Explore solar panels 

for stations. 

Explore merger options with other 

agencies. 

Med $20,000 

General 

Fund 

Possible savings 

when combined 

with other 

departments. 

Low ? Coordinate thru 

Public Works. 

High ? 

General 

Fund 

Could reduce 

public safety 

cost and 

administrative 

support cost. 

Library 

Potential Efficiencies/Reductions in Services 


6 

6 

2 

Explore possible changes to Literacy 

Program by partnering with existing 

Literacy Programs in the area.— 

Opportunity to Read program staff 

(Library) 

Send e-mail notices to all customers 

for over-due materials; invest in 

phone calling system to reach those 

without e-mail. 

Send all delinquent library accounts 

to collections, including juvenile 

accounts. 

Staff Funding 

Med No cost Would reduce 

cost to library by 

partnering with 

other programs 

Med $2,500 

Library 

Funds 

Med 

$9.99 per 

account 

Would liminate 

cost of materials 

used in mailing 

notices and 

staff time 

required to do 

so 

Would recoup 

funds for lost 

and overdue 

items and make 

materials 

available to the 

public. 

Parks and Community Services 



5 

5 

6 

Youth Center- Cancel Caltronics 

(copier ) Service Agreement—PCS/ 

Recreation 

Sports program- Eliminate 

Championship Trophies—PCS/ 

Recreation 

Callaghan – Eliminate Copier Service 

Agreement—PCS/ Recreation 

Staff Funding 

Low No Cost Would reduce 

annual costs by 

$1,000 



$1,380 

Low 

One time 

of $900 

Would reduce 



529

5 

4 

Eliminate grass on Bridge Street 

Median. Replace with drought 

tolerant landscape and/or appropriate 

hardscape.—PCS/Parks 

Require a minimum of 10 adult 

residents in attendance in order to 

hold neighborhood meeting & 

residents to help do outreach 

Depending on nature of meeting, NS 

& Admin staff dedicate 5 to 8 hours 

of planning and 2 to 3 hours of doorto-door 

outreach per meeting, not 

including being at the meeting. 

(estimated average of $400 prep & 

outreach per meeting)—PCS/ 

NS/Admin and Other Departments 

representatives 

High $20,000 

Water 

Conserva 

tion 

Fund 

$1,800 (saving 

$2500 over 3 

years) 

Would save 

$8,000 to 

$12,000 

annually in staff 

costs. 

High No Cost Would reduce 

amount of lost 

staff time for 

planning and 

holding 

neighborhood 

meetings 

requested by 

resident(s) that 

do not show 

Police Department 



4 

5 

5 

5 

4 

6 

6 

Lost Property calls. dispatch to 

provide caller the Incident number 

(AR#) 

Found Property calls. Change to 

only process property of ―real‖ value. 

Facilitate exchange of driver 

information in lieu of writing a 

collision report on non-injury vehicle 

collisions. 

Discontinue response to obvious and 

continual non-emergency mental 

health calls. We receive many calls 

where the individual is not a danger 

to themselves or others i.e. ―I smell 

something in the air‖ etc. 

Encourage schools (without an 

assigned officer) to deal with non 

criminal juvenile control issues. 

Stop responding to non-emergency 

juvenile control issues in the home 

such as ―my child won’t go to school 

or get out of bed‖. 

Limit assistance to CPS with routine, 

non-emergency home visits. WPD is 

often asked to make home visits on 

their behalf when there is no danger 

or police issue. 

Staff 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Funding 

No Cost 

No Cost 

No Cost 

No Cost 

No Cost 

No Cost 

No Cost 

Would l free up 

officer time 

Would free up 


Would free up 


Would free up 


Would free up 


Would free up 


Would free up 



530



Staff Funding 

Do not respond to habitual alarm 

calls. Abate continual false alarms 

using City ordinance. 

6 

6 

3 

531 

Med 

Staff time 

offset by 

revenue 

received 

from 

Alarm 

Program 

Reduce auction of property items 

unless there are items of value. Low No Cost 

Reduce the number of community 

presentations by officers, which 

hampers critical patrol resources and 

impacts overtime. 

Low 

No Cost 

Would free up 


Would free up 

Property Clerk 

time 

Would free up 

officer time, 

controls 

overtime 

spending. 


Potential Efficiencies/Service Reductions 


2 

5 

5 

5 

Automated Phone Answer system— 

Finance/Utilities 

Out-bound phone call system-- 

Utilities 

Transition to Google Docs & Gmail— 

All operations 

Consolidate IT services with other 

agencies—Finance/ISD 

Staff 

Med 

Low 

Low 

Low 

Funding 

Utilities; 

under 

$50k 

Utilities; 

under 

$10k 

Would 

reduce 

overall 

operating 

costs 

Minimal 

or 

reduced 

costs 

Would free up 


calls looking for 

automated 

information 

available 24/7 

Save staff time 

by reducing 

quantity of utility 

accounts that 

may be placed 

on initial and 

final service 

shut-off lists 

Free up 

computer 

technical 

support time to 

maintain local 

email server 

and reduce 

licensing costs 

for various end 

user 

applications 

(Word, Excel, 

etc). 

Goal would be 

to broaden IT 

capabilities 

without cost of 

hiring new staff


4 

4 

1 

0 

? 

0 

0 

Install pay kiosks for utility 

payments—Finance/Utilities 

Use E-Gov tolls to consolidate 

incoming community requests 

through online portal and single 

phone—City-wide 

Charge for Utility Field Service Calls 

(shut-off onsite notification, leak 

response, after 3:30 response)— 

Finance/Utilities 

Eliminate Special Event exceptions— 

PD/P&CS 

Conduct Feasibility Study to consider 

providing Garbage Service to outside 

residents served by Water (more 

revenue)—Solid Waste 

Install intelligent Parking Meters— 

PD/Finance 

Sell advertisements on City Vehicles- 

-Various 

532 

Low 

Low 

Low 

Low 

Med 

Med 

Low 

Utilities; 

under 

$25k 

Under 

$10k 

New 

Revenue 

source 

Increase 

Revenue 

Increase 

Revenue 

Base 

Increase 

Revenue 

Increase 

Revenue 

Would save 

money and 

staffing. 

Would save 


incoming 

questions and 

concerns as 

well as create 

single source 

for community 

events and 

information. 

Would help 

reduce subsidy 

for high labor 

accounts and for 

after-hour 

responses 

Would provide 

level funding 

field for 

community 

events 

Would have to 

complete 

Feasibility Study 

before 

proceeding 

Would have to 

complete 

Feasibility Study 

to confirm 

potential for 

revenue 

enhancement. 

Similar to 

program by 

METRO on 

buses. 

Public Works and Utilities 



5 

Replace turf at City Hall (fronting 

Central and Main Streets) with new 

diagonal parking and low water-use 

landscape. 

Staff Funding 

High $100,000 

from 

Water 

Fund. 

Reduces water 

use and 

landscape 

maintenance; 

serves as a 

model for water 

conservation; 

improves 

parking around


5 

5 

0 

5 

0 

0 

2 

0 

Rent out the Water Resources 

Center for weddings and other 

special events. 

Sell advertising on vehicles (e.g. 

garbage trucks).City Special Events 

Limit toilet retrofit & rebate washer 

rebates to no more than $50,000 per 

year. 

Put utilities in landlord name after 

account has been on the shut off list 

more than once in a calendar year. 

Turn off half of all street lights. Low $30,000 

initial 

cost 

Eliminate FREE removal of graffiti by 

the City. Transfer graffiti abatement 

to Code Enforcement to generate 

revenue for the General Fund. 

Graffiti abatement could be moved to 

Code Enforcement and could 

generate revenue for the General 

Fund. 

Consider closing PDO (Public Drop 

Off), and send residents to the 

County Drop-Off facility. 

Eliminate providing FREE solid 

waste service for special events. 

533 

City Hall 

Low No cost Would increase 

revenues to fund 

Wastewater 

Operations and 

capital projects. 

Low No cost Would increase 

revenues to fund 

Solid Waste 

Fund operations 

and capital 

projects. 

Low No cost Would reduce 

costs to Water 

Fund by 

$100,000 per 

year and reduce 

staff time. 

Low No cost Would reduce 

staff time and 

shut offs. Could 

reduce loss of 

Utilities revenue 

by $50K per 

year. 

Would save the 

City’s 

General Fund 

approximately 

$45,000 per 

year. 

Low 

Code 

Enforcem 

ent staff 

time 

would be 

paid 

through 

the 

citation 

process. 

Would reduce 


save the City’s 

Solid Waste 

Fund approx 

$150,000 per 

year. 

Low No Cost Would Solid 

Waste Fund 

$339,000 per 

year through 

reduced 

operational costs 

and staffing . 




Solid Waste 

Fund

4 

2 

5 

6 

6 

Discontinue shopping cart pick-up 

service. 

Reduce funding support for the 

O'Neil Sea Odyssey to $8,000 per 

year. 

Adopt PARSAC recommended 

sidewalk liability ordinance which 

reduces City’s liability for sidewalk 

tripping and other incidents—Public 

Works/Engineering 

Discontinue Green Business 

Certification Program 

Evaluate installation of a leachate 

pipeline from the city and county 

landfills to the City's wastewater plant 

approximately 

$18,000 per 

year. 




Solid Waste 

Fund 

approximately 

$10,000 per 

year. 

Low No Cost Would save City 

Utilities $8,000 

per year. 

Low No Cost Could save 

General Fund 

$50,000 per 

year. 

Low No cost Would save the 

City Utilities 

$15,000 per year 

Med High Could result in 

net landfill 

operating cost 

savings in tanker 

trucking costs 



ATTEST: 

__________________________________ 

Daniel Dodge, Mayor 

____________________________________ 

Beatriz Vázquez Flores, City Clerk 


534

UNADOPTED 

MINUTES 

REGULAR CITY COUNCIL MEETING 

May 24, 2011 


Council Chambers 


CONTENTS 


1.0 Roll Call 

4.1 Motion Approve Disbursements 

4.2 Motion Approve Minutes 

4.3 Motion Accept Invest Report 

4.4 Rejecting Claims for Damages: 

(a) Reso 83-11 PG & E 

(b) Reso 84-11 Rita Serrato et. al. 

4.5 Reso 85-11 Approve Plans & Specs 

Harkins Slough Bridge Pipeline 

Project No. WA-11-01 

4.6 Reso 86-11 Approve Lease Agmt 

Arthur Rd Baptist Church/Satellite 

Environmental Science Workshop 

4.7 Reso 87-11 Approve Agmt PVUSD 

WHS Pool/2011 City Aquatics Prog 

4.8 Reso 88-11 Setting Hourly Living 

Wage 

4.9 Reso 89-11 Authorize Submittal 

Grant Appl MBUAPCD 

8.1 Reso 90-11 Approve Plans & Specs 

CARE 

8.2 Social Service & Community 

Service Grants 


1.0 Roll Call 

3.0 Oral Communications 

3.1 Report out of Closed Session 

8.3 Presentation/SC Metro Proposed 

Routes Elimination 

6.1 Reso 91-11 Gonzales Street 

LLMAD 

6.2 Reso 92-11 Bay Breeze LLMAD 

6.3 Reso 93-11 Vista Montaña LLMAD 

Joint Council/Redevelopment 

Agency 

8.4 Budget Study Session 2011-2013 



1.0 ROLL CALL 

Mayor Dodge, Mayor Pro Tempore Montesino, and Council Members Bilicich (arrived at 

4:09 p.m.), Hurst, Martinez (arrived at 4:25 p.m.), and Rios were present. Member 

Bersamin was absent. 


City Manager Palacios answered Members Rios and Bilicich questions regarding Item 

4.8. 

MOTION: It was moved by Member Rios, seconded by Mayor Pro Tempore Montesino, 

and carried by the following vote that Consent Agenda Items 4.1 through 4.9 be 

approved: 

AYES: MEMBERS: Bilicich, Hurst, Montesino, Rios, Dodge 


ABSENT: MEMBERS: Bersamin, Martinez 

Vol 59 Min-CC052411.docx 

535

4.1 MOTION APPROVING REPORT OF DISBURSEMENTS 

It was reported that the City Manager had recommended favorably on claims for the 

warrants for various funds, which were referred to Council as follows: 

--May 24, 2011 

Trust Fund 2,973.00 

Employee Cash Deductions Fund 561,200.22 

General Fund 365,065.78 

Retirement Fund 421.00 

Community Development Block Grant 71,818.50 

H.O.M.E. Grants 45,150.00 

Relocation Revolving Fund 225.00 

Library Fund 53,192.21 

Special Grants 3,668.95 

Gas Tax 86,876.82 

Parking Garage Fund 887.34 

Public Facilities Impact Fees 498.79 

Impervious Area Impact Fee Fund 8,291.66 

Special District Funds 237.92 

Sewer Service Fund 159,017.20 

Water Operating Fund 220,772.80 

Airport Enterprise Fund 46,886.28 

Waste Disposal Fund 140,984.74 

Workers Comp/Liability Fund 11,002.25 

Health Insurance Fund 481,015.62 

Narcotics Forfeiture Pending 

4.2 MOTION APPROVING MINUTES OF APRIL 26, MAY 3 & 10, 2011 

1,071.63 

Total 2,261,257.68 

4.3 MOTION ACCEPTING MARCH & APRIL 2011 INVESTMENT REPORT 

4.4 RESOLUTIONS REJECTING CLAIMS FOR DAMAGES OF: 

(a) RESOLUTION NO. 83-11 (CM): 

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE 

REJECTING CLAIM OF PACIFIC GAS & ELECTRIC FOR DAMAGES 

(b) 



REJECTING CLAIM OF RITA SERRATO, ET AL., FOR DAMAGES 


536

4.5 RESOLUTION NO. 85-11 (CM): 


APPROVING PLANS AND SPECIFICATIONS AND CALLING FOR BIDS FOR THE 

HARKINS SLOUGH BRIDGE PIPELINE, PROJECT NO. WA-11-01 (ESTIMATED 

COST OF $475,000 WILL BE FUNDED FROM THE WATER ENTERPRISE FUND 

CAPITAL IMPROVEMENT PROGRAM) 



APPROVING A LEASE AGREEMENT BETWEEN THE CITY OF WATSONVILLE AND 

THE ARTHUR ROAD BAPTIST CHURCH, A CORPORATION, LOCATED AT 360 

ARTHUR ROAD, WATSONVILLE, CALIFORNIA, FOR THE USE OF SPACE TO 

HOUSE THE SATELLITE ENVIRONMENTAL SCIENCE WORKSHOP COMMENCING 

ON JUNE 1, 2011, AND ENDING MAY 30, 2012, AND DIRECTING THE CITY 

MANAGER TO EXECUTE SAME 



APPROVING AGREEMENT BETWEEN THE CITY OF WATSONVILLE AND THE 

PÁJARO VALLEY UNIFIED SCHOOL DISTRICT, A POLITICAL SUBDIVISION OF 

THE STATE OF CALIFORNIA, FOR USE OF THE WATSONVILLE HIGH SCHOOL 

POOL FOR THE CITY’S 2011 SUMMER AQUATICS PROGRAM, AND AUTHORIZING 

AND DIRECTING THE CITY MANAGER TO EXECUTE SAME 


A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE SETTING 

THE HOURLY LIVING WAGE PURSUANT TO SECTION 2-5.03 OF THE 

WATSONVILLE MUNICIPAL CODE 



AUTHORIZING AND DIRECTING THE CITY MANAGER ON BEHALF OF THE CITY 

OF WATSONVILLE TO SUBMIT A GRANT APPLICATION FOR $15,000 TO THE 

MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT FOR THE AB 

2766 EMISSION REDUCTION GRANT PROGRAM FOR THE PURCHASE OF A 

DIESEL PARTICULATE FILTER (DPF) PULSE CLEANING SYSTEM; AND IF 

AWARDED, TO EXECUTE A STANDARD AGREEMENT AND ANY AMENDMENTS 

THERETO; AND ANY NECESSARY DOCUMENTS; AND APPROPRIATING SUCH 

FUNDS TO THE GRANT BUDGET 

5.0 ITEMS REMOVED FROM CONSENT AGENDA 


8.1 PLANS & SPECIFICATIONS & CALLING FOR BIDS FOR CONSTRUCTION OF 

PAJARO RIVER COMMUNITY ACCESS, RECREATION, & EDUCATION (CARE) 

PROJECT 


The staff report was given by Assistant Public Works & Utilities Director Geyer. 

(b) 

City Council Questions 


537

Assistant Public Works & Utilities Director Geyer answered questions from 

Council Members. 

(c) 

(d) 

(e) 

Public Input (none) 

City Council Discussion (none) 



APPROVING PLANS AND SPECIFICATIONS AND CALLING FOR BIDS FOR 

CONSTRUCTION OF THE PÁJARO RIVER COMMUNITY ACCESS, 

RECREATION, AND EDUCATION (CARE) PROJECT, NO. WW-11-01 

(ESTIMATED COST OF $300,000 WILL BE FUNDED INITIALLY FROM THE 

SEWER ENTERPRISE FUND AND WHEN COMPLETED, WILL BE 100% 

REIMBURSED THROUGH THE EXISTING GRANT AGREEMENT FROM THE 

STATE OF CALIFORNIA NATURAL RESOURCES AGENCY) 

The above resolution was introduced by Member Hurst, seconded by Member 

Bilicich, and carried by the following vote: 

AYES: MEMBERS: Bilicich, Hurst, Montesino, Rios, Dodge 


ABSENT: MEMBERS: Bersamin, Martinez 

Member Martinez arrived at 4:25 p.m. 

8.2 SOCIAL SERVICE & COMMUNITY SERVICE GRANTS FOR FISCAL YEAR 2011- 

2012 

(a) Mayor Ad-Hoc Subcommittee Report 

The staff report was given by Executive Assistant Padilla and Deputy City 

Manager Maldonado. 

Mayor Dodge announced that the Human Care Alliance (HCA) presentation 

would be increased from 20 to 30 minutes. 

(b) 

Human Care Alliance (HCA) Presentation 

Brooke Johnson, Chief Operations and Programs Officer for Second Harvest 

Food Bank, spoke as a representative of the Human Care Alliance’s Watsonville 

jurisdictional committee on behalf of 27 affiliated local non-profits. She urged the 

Council not to cut the level of social services funding by 20% as recommended in 

the social services subcommittee report. She expressed concerns with the 

process and substance of the current funding recommendations. 

The following people spoke in support of not cutting funding from the following 

agencies: 

Celia Geckerman, Parents Center Executive Director 

Tim Bratton, California Grey Bears 

Grey Bear Volunteers and members: Pete Mireles, Laila Gaines, Rich Hart and 

Eiola Cross. 


538

Deborah Bone, Director Stroke and Disability Center at Cabrillo College 

Kerry Hirahara, student at Stroke and Disability Center 

Laura Marquez, Executive Director of Dientes Community Dental Care 

Elizabeth Vasquez, Resource Specialist at Senior Network Services 

Lucio Velez, Senior Center recipient 

Al, Senior Network Services 

Kathleen Johnson, Executive Director of Advocacy Inc. 

Karen Delaney, Volunteer Center 

Lupe Rivas, Volunteer Center volunteer 

Beverly Urbanic, Literacy Program volunteer 

At the request of HCA, Mayor Dodge with Council consensus extended the 

presentation by 15 minutes in order to allow other public members to speak. 

Anita, Shelter Project of Watsonville 

Kenneth Valdez, Shelter Project of Watsonville recipient 

Jackie Avalos, Community Action Board Women’s Venture Project recipient 

Joel Campos, Education and Outreach Manager Second Harvest Food Bank 

Maria Virgen, Second Harvest Food Bank volunteer 

Eden Martel, Second Harvest Food Bank volunteer 

Marco Ramirez, Parent Volunteer at Freedom Elementary School 

Carol Mulfred, Child Development Resource Center 

Sara Clarenbach, Salud Para La Gente 

Marie, Executive Director Big Brothers/Big Sisters, 

Paola Delgado and Jose Magallon, Big Brothers/Big Sisters recipient 

Craig Blunt, Big Brothers/Big Sisters Volunteer 

Sam Storey, CEO Community Bridges 

Gloria Matera, Project Scout recipient 

Gabriela Lopez Chavez, La Manzana Community Resources 


539

Aurelio Diaz and Fernando Acosta, Si Se Puede residents 

Bill McKay, Director of Youth Services Program at Santa Cruz Community 

Counseling Center 

Miriam Ortiz and Anahi Adan, Pajaritos Program recipientS 

Lisa Burkwood, Program Director for Community Bridges Meals on Wheels 

Enriqueta Rojas and Leonor Benitez, Watsonville Senior Center recipients of 

Meals On Wheels 

Helen Ewan-Storey said the following agencies were also in attendance but due 

to time constraints were not able to speak: Central Coast Center for Independent 

Living, California Rural Legal Assistance Organization, Community Action Board 

Immigration Project, Family Services Agency, Seniors Counsel, Court Appointed 

Special Advocates of Santa Cruz County (CASA), Senior Legal Services and 

Women’s Crisis Support Defensa de Mujeres. 

(c) 

Social Services Presentation by Non-HCA Members 

Jenny Sarmiento, Pajaro Valley Prevention and Student Assistance 

Margarita Cortez, Executive Director of Pajaro Valley Loaves and Fishes 

Sylvia Diaz, Pajaro Valley Prevention and Student Assistance 

Amy Mascarenas, Executive Board Member for the Pajaro Valley Performing 

Arts Association 

Sally Green, Cultural Council of Santa Cruz County 

(d) 

(e) 

(f) 

(g) 

Community Services Presentation (none) 


Deputy City Manager Maldonado in answering Member Bilicich said that the total 

savings from the nine programs that were proposed to be eliminated for funding 

was $29,000 and would provide Council with an itemized list. 

Public Input (none) 


Member Rios recommended that no programs be eliminated and that all of the 

groups receive an equal funding cut. 

Deputy City Manager Maldonado explained the process for Social Service & 

Community Service Grants. 

Mayor Dodge said the item would return to Council on June 7 th with the new 

funding recommendations, and the Ad Hoc Committee would take into 

consideration all of the suggestions and comments made by the agencies and 

public. 


540

Member Bilicich requested that when Council receives the new funding 

recommendation from the Social Service & Community Service Grants Ad Hoc 

Committee that it state the reason for suggested decreases or increases in 

funding. 

5:55 P.M. 

10.0 CLOSED SESSION 

(City Council Conference Room, 275 Main Street—4 th Floor) 

Closed Session Announcement: 

(a) Public Comments regarding the Closed Session agenda will only be 

accepted by the City Council at this time. 

(b) 

Closed Session Announcement 

Mayor Dodge called the Closed Session meeting to order. He called for public 

comment. 

1.0 ROLL CALL 

A. CONFERENCE WITH LEGAL COUNSEL—LITIGATION 

(Government Code Section 54956.9) 

1. Pending litigation pursuant to subdivision (a): 

a) Name of case: Mark Heim and Jynel Heim, The Estate of Donald T. Heim 

etal. v. City of Watsonville – Santa Cruz Superior Court 

(Case No. CV154815) 

Heim v. Heim — USDC – NDC (Case No. CV10-03816) 

B. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION 


1. Significant exposure to litigation pursuant to subdivision (b) of Section 

54956.9: 

Francisco J. Gonzalez, Maria C. Gonzalez v. City of Watsonville 

C. CONFERENCE WITH LABOR NEGOTIATOR 


1. Agency negotiator: Mario Maldonado and David Koch 

Employee organizations: Clerical Technical, Confidential Unit, 

Fire, Management Unit, Mid-Management Unit Operating 

Engineers Local Union No. 3 for employees in the Public 

Works Unit, Police Officers Association, Public Safety Mid- 

Management Unit 



541

Mayor Dodge, Mayor Pro Tempore Montesino, and Council Members Bilicich (arrived at 

8:12 p.m.), Hurst, Martinez, and Rios were present. Member Bersamin was absent. 

Staff members present were City Manager Palacios, City Attorney Smith, City Clerk 

Vázquez Flores, Deputy City Clerk C. Ibarra, Assistant City Manager Tavantzis, Deputy 

City Manager Maldonado, Parks & Community Services Director Espinoza, Assistant 

Public Works & Utilities Director Geyer, Administrative Services Director Pimentel, 

Library Director Heitzig, Fire Chief Bisbee, Police Chief Solano, Deputy Police Chief 

Escalante, Deputy Police Chief Knill, Water Division Manager Palmisano, Interim 

Assistant Parks & Community Services Director Blachly, Battalion Fire Chief Martin Del 

Campo, Solid Waste Division Manager Gordo, Administrative Services Manager Peters, 

Police Officer Barrera, Police Lieutenants Gluhan and Traub, Police Sergeant Robles, 

and Interpreter Miranda. 


3.0 ORAL COMMUNICATIONS FROM THE PUBLIC & CITY COUNCIL 

Nick Bulaich read from a letter posted on the California Dental Association website 

which stated that fluoride alone would not help prevent tooth decay. He asked the 

Council to stop the fluoride process. 

Nina Beety went over some of the health problems and electronic interferences 

associated with Smart Meters. She asked the Council to join the protest opposing 

PG&E’s Smart Meter opt out proposal. 

Marilyn Garret asked the Council to join the protest opposing PG&E’s Smart Meter opt 

out proposal. 

Gary Richard Arnold spoke regarding Operation Clover Leaf a formal program in which 

he said chemicals are dumped in our area. He asked the Council to pass a resolution to 

demand transparency. 

Rich Inman, Member of The Pajaro Valley Performing Arts Association, introduced 

himself to the Council and went over some of the recent changes to the Board and said 

there were exciting events that would be happening at the Mello Center this coming 

year. 

Matt McCollum, Fire Fighters Union President, said the firefighters were still negotiating 

with the City and were prepared to give considerable concessions and asked that the 

City allow the firefighters to work towards a fair contract. 

Jose Reyes-Olivas, Pajaro Valley Performing Arts Association Board Member, said the 

Board had been recently invigorated and would be bringing more shows to the Mello 

Center and asked for the Council’s continued support. 

Unknown male, asked for the Council’s continued support to the Pajaro Valley 

Performing Arts Association. 

Member Rios went over the various events he attended in the City in the past two 

weeks. 


542

Member Hurst said he was pleased to hear the progress that the Mello Center and the 

Pajaro Valley Performing Arts Association were making. 

Mayor Pro Tempore Montesino agreed with the comments made by Member Hurst and 

said that bringing more events to the community would help revitalize downtown. 

Mayor Dodge went over the various events he attended in the City in the past two 

weeks. 

3.1 REPORT OUT OF CLOSED SESSION 

City Attorney Smith reported no action out of closed session. 

Mayor Dodge announced that Item 8.3 would be heard before Item 6.0 at the request of 

Santa Cruz Metropolitan Transit District representatives. 


8.3 SANTA CRUZ METROPOLITAN TRANSIT DISTRICT (SCMTD) PROPOSED ROUTES 

ELIMINATION 

(a) Staff Report by SCMTD Staff 

The staff report was given by Erich R. Friedrich, Jr. Transportation Planner with 

Santa Cruz Metropolitan Transit District. 

(b) 

(c) 


Jr. Transportation Planner Erich R. Friedrich and Operations Manager Ciro 

Aguirre for the Santa Cruz Metro answered questions from Council Members 

regarding the proposed route eliminations. 

Public Input 

Bob Geyer spoke in favor of not eliminating the 6:30 a.m. 91X route which was 

the bus route he had been taking every morning to get to work for the past four 

years. 

Marilyn Garrett spoke in favor of banning the use of electronic devices in public 

transportation. 

(d) 

(e) 


At the request of Mayor Pro Tempore Montesino, Ciro Aguirre said he would 

contact City Clerk Flores to arrange the use of the Council Chambers for the 

Santa Cruz Metro to host a second public hearing regarding the proposed transit 

service reductions. 


6.0 PUBLIC HEARINGS, ORDINANCES, & APPEALS 

6.1 GONZALES STREET ALLEYWAY LANDSCAPING & LIGHTING ASSESSMENT 

DISTRICT NO. PK-94-01 

(a) 

Staff Report 

The staff report was given by Interim Asst. Parks & Community Services Director 

Blachly. 


543

(b) 

(c) 

(d) 

(e) 


Interim Asst. Parks & Community Services Director Blachly answered questions 

from Council Members. 

Public Hearing (None) 




CONFIRMING DIAGRAM AND ASSESSMENT AND LEVYING ASSESSMENT 

FOR FISCAL YEAR 2011-2012 FOR THE GONZALES STREET ALLEYWAY 

LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 

The above resolution was introduced by Member Montesino, seconded by 

Member Hurst, and carried by the following vote: 

AYES: MEMBERS: Hurst, Martinez, Montesino, Rios, Dodge 


ABSENT: MEMBERS: Bersamin, Bilicich 

6.2 BAYBREEZE SUBDIVISION LANDSCAPING & LIGHTING ASSESSMENT DISTRICT 

NO. PK-03-02 

(a) 

(b) 

(c) 

(d) 

Staff Report 


Blachly. 




Public Hearing (none) 

City Council Discussion (None) 

Member Martinez left the dais before roll call was taken. 

(e) 




FOR FISCAL YEAR 2011-2012 FOR THE BAY BREEZE SUBDIVISION 


The above resolution was introduced by Member Rios, seconded by Member 

Montesino, and carried by the following vote: 

AYES: MEMBERS: Hurst, Montesino, Rios, Dodge 


ABSENT: MEMBERS: Bersamin, Bilicich, Martinez 

6.3 VISTA MONTAÑA SUBDIVISION LANDSCAPING & LIGHTING ASSESSMENT 

DISTRICT NO. PK-03-03 


544

(a) 

(b) 

(c) 

(d) 

(e) 

Staff Report 


Blachly. 




Public Hearing (None) 





FOR FISCAL YEAR 2011-2012 FOR THE VISTA MONTAÑA SUBDIVISION 


The above resolution was introduced by Member Rios, seconded by Mayor Pro 

Tempore Montesino, and carried by the following vote: 

AYES: MEMBERS: Hurst, Montesino, Rios, Dodge 


ABSENT: MEMBERS: Bersamin, Bilicich, Martinez 

THE MEETING RECESSED TO A JOINT CITY COUNCIL/REDEVELOPMENT AGENCY 

MEETING AT 8:19 P.M. 

Member Bilicich arrived at 8:20 p.m. 



8.4 STUDY SESSION OF PROPOSED BUDGET FOR FISCAL YEARS 2011-2013 


The staff report was given by Administrative Services Director Pimentel. 

(b) 

City Council/Agency Members Questions 

Administrative Services Director Pimentel answered questions from Council 

Members. 

Administrative Services Director Pimentel at the request of Member Bilicich said 

he would research the annual cost of overtime paid to administrative staff and get 

that information to her. 

MAYOR DODGE DECLARED A RECESS AT 9:41 P.M. 

THE MEETING RECONVENED AT 9:51 P.M. 

(c) 



545

(d) 

City Council/Agency Members Discussion 

Administrative Services Director Pimentel, at the request of Member Bilicich, said 

he would inform the Council of any suggestions or comments that are received 

from the public regarding the budget deficit. 

Member Martinez suggested private patrols be contracted for special events. He 

asked that bilingual pay be reviewed. 

Member Bilicich asked to be provided with a proposal from the Fire and Police 

Departments on how to reduce overtime cost. 

Member Martinez left at 10:23 p.m. 

City Manager Palacios clarified some of the comments made by Member 

Martinez regarding bilingual pay, pay reductions to upper management staff, and 

economic development. 

Administrative Services Director Pimentel asked the public to send comments to 

the City regarding the budget. 

(e) 




ATTEST: 

__________________________________ 

Daniel Dodge, Mayor 

____________________________________ 

Beatriz Vázquez Flores, City Clerk 


546



Public Works & Utilities Department 



TO: 

FROM: 

SUBJECT: 


David A. Koch, Public Works/Utilities Director 

Murray A. Fontes, Principal Engineer 

Resolution Awarding Bid for the Freedom Boulevard 

Reconstruction Project, Project No. ST-07-05. 

AGENDA ITEM: June 14, 2011 City Council 


Staff recommends that the City Council award the construction contract for the Freedom 

Boulevard Reconstruction Project, Project No. ST-07-05, to the lowest responsive bidder, 

Monterey Peninsula Engineering of Marina, CA, in the amount of $1,105,767.00. 

DISCUSSION: 

This project consists of the reconstruction of Freedom Boulevard, between East High Street 

and Broadis Street. The work involves reconstruction and overlay of the roadway and 

replacement of the sidewalk. 

On May 10, 2011, the City Council approved Resolution No. 81-11 (CM) that included approval 

of plans and specifications and called for bids for the subject project. Bids were opened on 

June 2, 2011. The results are summarized as follows: 

Bidder 

Amount 

Monterey Peninsula Engineering, Marina, CA $ 1,105,767.00 

The Don Chapin Company, Inc., Salinas CA $ 1,187,978.00 

Granite Construction Company, Watsonville, CA $ 1,239,239.00 

Earthworks Paving Contractors, Capitola, CA $ 1,320,830.15 

Graniterock Company dba Pavex Construction Division, San Jose, CA $1,402,700.00 


Murray Fontes 6/6/2011 8:53:19 AM 

M:\Public Works & Utilities\Staff Reports\2011\6-14\maf freedom blvd reconstruction bid award 06.14.11.docx


Adoption of this resolution is consistent with the Watsonville City Council’s 2009-2011 

Strategic Plan as it is listed as Goal III – Community Resources, Objective 2 – Streets and 

Traffic, Goal #46. 


Award of the project to Monterey Peninsula Engineering of Marina, CA, is in the amount of 

$1,105,767.00. The project will be funded with $751,000 in Regional Surface Transportation 

Exchange (RSTPX) funds and $354,767 in State Proposition 1b funds. 

ALTERNATIVES: 

The Council can choose not to award the bid and not proceed with the project. 

ATTACHMENTS: 

None. 

cc: 

City Attorney 


Murray Fontes 6/6/2011 8:53:19 AM 

M:\Public Works & Utilities\Staff Reports\2011\6-14\maf freedom blvd reconstruction bid award 06.14.11.docx



A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF 

WATSONVILLE AWARDING $1,105,767.00 BID TO MONTEREY 

PENINSULA ENGINEERING, A CORPORATION, FOR 

CONSTRUCTION OF THE FREEDOM BOULEVARD 

RECONSTRUCTION PROJECT NO. ST-07-05 (FUNDED FROM THE 

REGIONAL SURFACE TRANSPORTATION EXCHANGE [RSTPX] 

FUNDS AND STATE PROPOSITION 1B FUNDS) 

WHEREAS, Resolution No. 81-11 (CM) adopted by the City Council of the City of 

Watsonville on May 10, 2011, approved plans and specifications and authorized calling 

for bids for construction of the Freedom Boulevard Reconstruction Project No. ST-07- 

05; and 

WHEREAS, the bids received for construction of the Freedom Boulevard 

Reconstruction Project No. ST-07-05 were opened in the City Council Chambers, City 

Hall, 250 Main Street, Watsonville, California, on Thursday, June 2, 2011, at 11:00 

A.M., and later tabulated by the Purchasing Officer for the consideration of the City 

Manager and submission to the City Council; and 

WHEREAS, the City Manager has recommended that the bid from Monterey 

Peninsula Engineering, a corporation, [Contractor License #791700] for construction of 

the Freedom Boulevard Reconstruction Project No. ST-07-05, in the amount of 

$1,105,767.00, be accepted as the low responsive bid. 

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

OF WATSONVILLE, CALIFORNIA, AS FOLLOWS: 

1. That the bid of Monterey Peninsula Engineering, a corporation, for 

construction of the Freedom Boulevard Reconstruction Project No. ST-07-05, in the 

amount of $1,105,767.00 be accepted, and the execution of a contract by the City 

Manager is hereby authorized. 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\AB ST-07-05 Freedom Blvd.docx 

ri 6/7/2011 5:47:10 PM 

AJS ______ CJP ______PWU ______ 

1

2. That all other bids are hereby rejected. 

********************************** 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\AB ST-07-05 Freedom Blvd.docx 

ri 6/7/2011 5:47:10 PM 

2





DATE: May 20, 2011 

TO: 

FROM: 

SUBJECT: 


Manny Solano, Chief of Police 

Terry Traub, Support Services Lieutenant 

Agreement between City and District for 

School Community Policing Officer Services at 

Pajaro Valley High School and Watsonville 

High School for School Year 20011-2012 

AGENDA ITEM: June 14, 2011 

City Council 


That the City Council approves an agreement between the Pajaro 

Valley Unified School District and the City of Watsonville to provide for 

one full time police officer assigned to Pajaro Valley High School and 

one full time officer assigned to Watsonville High School for school 

year 2011-2012. That the District reimburses the City $191,680.00 for 

the school-based police officer services for the term of the agreement 

and that the City Council authorize the City Manager to execute the 

agreement and any amendments or extensions thereto. 

Lt. Terry Traub 5/20/2011 9:39:21 AM 

G:\Staff Reports\SRO Agreement 11-12 5-17-11.pdf 



DISCUSSION: 

The City collaborated with 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 agreements to fund the one full time police officer at 

Watsonville High School. The original Resolution 5-94(CM) was 

approved by City Council on January 11, 1994. 

When Pajaro Valley High School was built, the City and District again 

entered into agreements regarding one full time police officer be based 

on campus during the school year. During the first three years most of 

the funding had been through a grant, Safe Schools Healthy Students, 

in which Pajaro Valley Prevention and Student Assistance was the 

applicant. Over time and after grant funding terminated, the District 

and City continued to enter into agreements to fund the one full time 

police officer at Pajaro Valley High School. The first agreement for 

Pajaro Valley High School was passed on May 9, 2006, Resolution No. 

92-06 (CM), amended through Resolution No. 168-07(CM) on August 

14, 2007 and again amended in Resolution No. 103-08 (CM) on June 

24, 2008. 

This agreement for school year 2011-2012 covers both campuses, 

Watsonville High and Pajaro Valley High. 


Deploying full time officers at Pajaro Valley and Watsonville High 

School addresses the City Councils strategic plan priorities. 

Specifically educational attainment and public safety is addressed by 

having an officer on-campus. When students feel safe they are able to 

concentrate on academics. The initiative is a collaborative that will 

increase communications between police, administrators, teachers, 





parents, students, and mental health providers. The program is 

problem solving based to reduce and prevent campus violence, 

student drug use, and create a safe and drug-free school. The program 

seeks to reduce crime and enhance positive alternatives to 

wrongdoing. 


The reimbursement for the school-based police officer is based on the 

salary and benefits of a top step officer and the total number of hours 

devoted to the campus. The hourly police officer rate is $68.46 at 

1,400 hours in a school year for a total of $95,840 reimbursement to 

the City for each officer. The police department’s FY 2011-2012 

budget includes this amount as revenue received from the District for 

this program (revenue accounts 150-410-5890-03216 and 410-5651). 

ALTERNATIVES: 

The Council may choose to not participate in the program. The police 

department would only respond to Pajaro Valley High and Watsonville 

High calls-for-police service on a priority basis with all other calls in the 

City. Collaboration with schools and community-based organizations 

in developing strategies for the reduction of school-based gang 

violence and drug use would not be as focused or structured. The 

department's approach would be sporadic because the officer position 

would assume other duties. Lastly, police officers would still be 

responding to the calls for service and generating reports but the City 

would not have the cost sharing benefit the proposed program 

currently provides. 

ATTACHMENTS: 

None 

cc: City Attorney 







WATSONVILLE APPROVING AGREEMENT BETWEEN THE CITY OF 

WATSONVILLE AND THE PÁJARO VALLEY UNIFIED SCHOOL 

DISTRICT FOR SCHOOL COMMUNITY POLICING OFFICER SERVICES 

AT PÁJARO VALLEY HIGH SCHOOL AND WATSONVILLE HIGH 

SCHOOL FOR SCHOOL YEAR 2011-2012 AND REIMBURSE THE CITY 

$191,680; AND AUTHORIZING AND DIRECTING THE CITY MANAGER 

TO EXECUTE SAME AND ANY AMENDMENTS OR EXTENSIONS 

THERETO 

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, 

CALIFORNIA, AS FOLLOWS: 

1. That the Agreement between the City of Watsonville and the Pájaro Valley 

Unified School District for School Community Policing Officer Services, a copy of which 

is attached hereto and incorporated herein by this reference, is fair and equitable and is 

hereby ratified and approved to provide one (1) fulltime police officer at Pájaro Valley 

High School and one (1) fulltime police officer at Watsonville High School, and reimburse 

the City One Hundred Ninety One Thousand Six Hundred Eighty Dollars ($191,680). 

2. That the City Manager be and is hereby authorized and directed to execute 

the Agreement for and on behalf of the City of Watsonville and any amendments or 

extensions thereto. 

**************************************** 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\Agrmt PVUSD Policing Officers.docx 

ri 6/7/2011 2:10:11 PM 

AJS ______ CJP ______Police ______ 

1



Watsonville Parks & Community Services 



TO: 

FROM: 


Ana Espinoza, Director Parks & 

Community Services 

SUBJECT: Resolution Approving the Filing of a Grant 

Application in the amount of $5 Million to 

the State of California Department of 

Parks and Recreation for Round II of the 

Proposition 84 Grant program for the 

Renovation of Ramsay Park 



Staff recommends that the City Council adopt a resolution approving 

the filing of a grant application in the amount of $5 Million for the 

renovation of Ramsay Park with the State of California Department of 

Parks and Recreation and authorize the City Manager to sign all 

documents associated with this grant application. Funding sought is 

through the Safe Drinking Water Quality and Supply, Flood Control, 

River and Coastal Protection Bond Act of 2006 administered by the 

State of California Department of Parks and Recreation under 

Proposition 84. 


p:\citycouncil\staffreports\2011\prop 84 grant applicationround ii.doc

DISCUSION: 

Background. 

On November 7, 2006, California voters passed Proposition 84, Safe 

Drinking Water, Water Quality and Supply, Flood Control, River and 

Coastal Protection Bond Act of 2006. With this funding the State has 

created a statewide program providing $368 Million dollar grant 

program through the Sustainable Communities and Climate Change 

Reduction Chapter outlined in Proposition 84. These funds are 

managed by the State of California Department of Parks and 

Recreation and made available through competitive grants for the 

creation of new parks and new recreation opportunities in critically 

underserved communities across California. 

In 2010, during the first round Proposition 84 Grant funding, $184 

million was available with a maximum of $5 Million available in grant 

funding per project. On February 23, 2010, the City Council approved 

a resolution authorizing staff to submit a grant application during this 

first round of funding for the renovation of Ramsay Park in the amount 

of $5 Million. Unfortunately, the grant application was not selected for 

funding at that time. 

Prior projects submitted for funding are eligible to be resubmitted for 

consideration during Round II of the Proposition 84 Grant Program, 

thus staff is recommending that the Ramsay Park renovation project be 

resubmitted for Round II funding. At their June 2, 2011 meeting, the 

Parks and Recreation Commission also recommended the 

resubmission of the grant application for renovation of Ramsay Park. 

Grant Requirements and Eligibility. 

This Statewide Park Program requires that eligible projects meet six 

eligibility requirements: 

Project is located in an area with Critical Lack of Park Space or 

Significant poverty 



Type of Project be eligible under state guidelines 

Safe Public Use 

Sustainable Techniques are incorporated in the design and 

construction 

Project Funding is available and complete by 2017 

Fees and Hours of Operations remain accessible to the larger 

community to enjoy recreation features. 

Based on the grant eligibility criteria and community needs, the Parks 

and Community Services Department selected Ramsay Park as the 

project location. The renovation of Ramsay Park is estimated to cost 

$5 Million. 

The Department conducted extensive community outreach to engage 

community members in the planning process for developing a 

renovation plan for Ramsay Park. 

Five community meetings were conducted between January and early 

February, 2010. Over 200 community members provided their input 

and ideas about what features in the park should be remodeled or 

incorporated in the park in order to meet community needs. 

Community input was an essential element of this project. Through 

this process community members completed an individual 

assessment of the park conditions and participated in a variety of 

hands on group activities to help build consensus regarding the 

elements of the park that need renovation. According to the individual 

assessments, the areas of the park that are most visited are: 

Playgrounds (60%), the soccer fields (52%), and the picnic areas 

(47%). The top five areas that should be upgraded/renewed according 

to workshop participants are: playgrounds (59%), public restrooms 

(54%), Soccer fields (41%), picnic areas (39%), and the skate park 

(31%). This process also identified new recreational features that are 

important for the community such as a multigenerational facility to 

participate in fitness and recreational activities and a swimming pool. 



The grant application is due on July 1, 2011. A detailed scope of work, 

project description and a conceptual plan incorporates the top five 

priorities identified by the public in 2010. 

Proposed Park Renovation Plan. 

A. Renovated soccer fields with new synthetic turf and field lighting: 

The two existing soccer fields will be converted to synthetic turf fields. 

This will provide day-in and day out use of the fields regardless of the 

weather or time of year. Soccer is a very important element of the 

Watsonville community, and the demand for quality fields is never met. 

The conversion to turf would also lower maintenance costs both in 

terms of landscaping care by City Park staff, and minimizing the use of 

water for irrigation. Included in this scope of work is the installation of 

stadium lights for evening use, and aluminum bleachers installed along 

one side of each field for spectators. 

B. Renovated picnic areas, gathering spaces, and playground areas, 

including a new walking trail: 

Existing picnic areas and playground areas, that have become worn 

and outdated, will be removed, and new picnic areas, gathering spaces 

for the public, and up to three new playground structures will be 

constructed. Work will entail new design areas for both smaller picnic 

areas and larger crowds, new site amenities (benches, tables, etc.), 

site concrete, architectural concrete and pavers, drainage systems, 

and site lighting. All of this work will be enhanced by new landscaping 

and supporting irrigation. All work will be designed and installed to 

meet current ADA standards, as well as low impact drainage 

standards. 

A new walking trail that circumnavigates the park will be designed and 

installed. This trail will tie together the new picnic areas, play grounds, 

and sports fields with the existing Nature Center, Recreation Center, 

and city wide trail system that lead to existing walking trails around City 



sloughs, which are a nature preserve, and are a popular destination for 

the public. 

C. Renovated Restrooms: 

Existing restrooms are outdated and in poor condition. Scope of work 

would be to demolish the building, and reconstruct from the ground up 

with new plumbing and finishes, doubling the capacity of each building. 

All work would be of institutional quality and ADA compliant. Use of 

solar energy and waterless urinals will also be considered. 

D. New Skate Park: 

Existing skate park is flat AC paving with metal ramps. At the 

community meetings, the public lobbied for a more modern, state of 

the art skate park. The scope of work will include demolishing existing 

skate park, and constructing new, state of the art, concrete facility at 

new location within the park area. 

E. Infrastructure Improvements: 

This work will provide new infrastructure to the other projects on site. 

Work includes new electrical lines and services to support stadium 

lighting, implementation of bioswales at parking lots to support low 

impact drainage design, which includes upgrade of storm drain system; 

bioswales and detention areas to support new synthetic turf 

construction, and relocation and repairs to sanitary sewer lines. 


The City Council’s goals of Safe and Healthy Community, Community 

Resources and City Image are met by this project. 


There is no financial impact to the City. If the City is successful in 

securing this grant, $5 Million dollars will be available for the 

renovation of Ramsay Park. Proposition 84 Grant does not require a 

match. The project budget below outlines the estimated costs of the 

renovation: 



Improvements 

Estimated Cost 

Renovation of soccer field to synthetic turf including $1,300,000 

demolition, installation, and drainage 

New walking trail: grading and installation $100,000 

Renovation of picnic area: demolition, regarding and $900,000 

new construction and site work 

Renovation of playground areas; demolition and $250,000 

installation of new play equipment to meet ADA 

accessibility 

New skate park: grading and installation of new sate $1,025,000 

of art skate park 

Restrooms: demolition of old structures and $400,000 

construction of two new ADA accessible restrooms 

Infrastructure improvements: new “green” drainage $325,000 

system and new electrical utilities 

Site lighting: New Lights at soccer field for evening $125,000 

play and site lighting 

Landscape and irrigation: new planting to 

$175,000 

supplement picnic areas and walking trails 

Total Estimated Cost For Recreation Features and $4,600,000 

Major Support Amenities 

Total Estimated Pre-Construction Cost $400,000 

TOTAL PROJECT COST $5,000,000 

ALTERNATIVES: 

The City Council may choose not to apply for these funds. 

ATTACHMENTS: 

None. 

cc: City Attorney 




RESOLUTION NO. 

(CM) 


WATSONVILLE AUTHORIZING AND DIRECTING THE CITY MANAGER 

ON BEHALF OF THE CITY OF WATSONVILLE TO SUBMIT AN 

APPLICATION FOR $5 MILLION FOR THE RENOVATION OF RAMSAY 

PARK IN STATEWIDE PARK PROGRAM GRANT FUNDS THROUGH 

THE STATE OF CALIFORNIA DEPARTMENT OF PARKS AND 

RECREATION UNDER PROPOSITION 84; AND IF AWARDED, TO 

EXECUTE A STANDARD AGREEMENT AND ANY AMENDMENTS 

THERETO; AND ANY NECESSARY DOCUMENTS; AND 

APPROPRIATING SUCH FUNDS TO THE GRANT BUDGET 

WHEREAS, the State Department of Parks and Recreation has been delegated 

the responsibility by the Legislature of the State of California for the administration of the 

Statewide Park Program, setting up necessary procedures governing the Application; 

and 

WHEREAS, said procedures established by the State Department of Parks and 

Recreation require the City of Watsonville to certify by resolution the approval of the 

application before submission of said application to the State; and 

WHEREAS, the City of Watsonville will enter into a contract with the State of 

California to complete the grant scope project, should the grant be awarded. 



1. That the City Council of the City of Watsonville hereby authorizes the 

submittal of a $5 million grant application for the Renovation of Ramsay Park, on behalf 

of the City of Watsonville, to the California Department of Parks and Recreation. 

2. That the City Council hereby certifies that the City of Watsonville has or will 

have available, prior to commencement of any work on the project included in this 

application, the sufficient funds to complete the project. 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\Grant App for Ramsay Park Prop 84.docx 

ri 6/7/2011 2:08:37 PM 

AJS ______ CJP ______ PCS ______ 

1

3. That the City Council hereby certifies that the City of Watsonville has or will 

have sufficient funds to operate and maintain the project, should the grant be awarded. 

4. That the City Council hereby certifies that the City of Watsonville has 

reviewed, understands, and agrees to the General Provisions contained in the contract 

shown in the Grant Administration Guide. 

5. That the City Council hereby delegates the authority to the City Manager, 

or designee, to conduct all negotiations, sign and submit all documents, including, but 

not limited to applications, agreements, amendments and payment requests, which may 

be necessary for the completion of the grant scope. 

6. That the City Council of the City of Watsonville agrees to comply with all 

applicable federal, state and local laws, ordinances, rules, regulations and guidelines. 

7. That the City Manager of the City of Watsonville is authorized and directed, 

if said grant is awarded, to appropriate the $5 million to the Grants Fund. 

*********************************** 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\Grant App for Ramsay Park Prop 84.docx 

ri 6/7/2011 2:08:37 PM 

2



Public Works & Utilities 



TO: 

FROM: 

SUBJECT: 


David A. Koch, Director of Public Works & Utilities 

Steve Palmisano, Water Division Manager 

Approval of FY 2011/2012 Budget for Santa Cruz County Zone 

7 Flood Control and Water Conservation District (Zone 7) 



It is recommended that City Council approve the proposed FY 2011/2012 budget for the Santa 

Cruz County Zone 7 Flood Control and Water Conservation District (Zone 7). 

DISCUSSION: 

The Zone 7 Board of Directors, which includes Council Member Bersamin, is scheduled to 

consider the proposed FY 2011/2012 Zone 7 budget at their meeting on June 20, 2011. The 

Zone 7 budget also requires approval by the Santa Cruz County Flood Control and Water 

Conservation District Board of Directors and the Watsonville City Council in order to be 

adopted and implemented by Zone 7. 

The Zone 7 District was established to provide funding for implementing the proposed Army 

Corps of Engineers flood control projects on the Pajaro River, Salsipuedes Creek and 

Corralitos Creek. Zone 7 staff coordinates with the Corps to ensure local needs are addressed, 

provides assistance to the Corps as necessary in project evaluation, administrative and 

engineering drainage services, and is responsible for the replacement, upgrading, and 

maintenance of drainage and flood control facilities in the levee system. The budget reflects 

the projects and programs shown in the proposed 2011/2012 Capital Improvement Program. 

The Zone 7 FY 2011/2012 budget as proposed by Santa Cruz County staff, along with 

estimated FY 2010/2011 expenditures, is attached and summarized as follows: 


M:\Public Works & Utilities\Staff Reports\2011\6-14\Zone 7 Budget Staff Report 2011.doc

Expenditures 2010/2011 

Estimated 

2011/2012 

Proposed 

Maintenance & Operations on the Levee System $615,000 $677,967 

Pajaro River 1601/404 Maintenance Applications $25,000 $50,000 

General Engineering & Public Service $200,000 $250,000 

Permit and Environmental Studies (staff) $90,000 $150,000 

Permit and Monitoring Requirements $100,000 $125,000 

County Counsel Service $25,000 $25,000 

Alert Monitoring Maintenance $50,000 $75,000 

Army Corps Flood Control Projects $891,734 $600,000 

Prop 1E Stormwater Management $0 $4,775,000 

Levee Sealcoat $100,000 $0 

Flood Control Project Advocacy $69,042 $71,000 

Bank Stabilization $2,313 $100,000 

Pajaro River Watershed Joint Powers Authority $35,000 $35,000 

Operating Transfer Out (Debt Service) $425,455 $409,957 

Contingencies $30,704 $146,000 

TOTAL $2,559,248 $7,489,924 

The recommended financing includes an estimated fund balance of $662,148, assessments of 

$1,627,122, and grant revenue of $4,775,000. The recommended appropriations are 

$7,489,924, leaving an estimated $0 in unappropriated fund balances. Copies of pages 32-41 

and 32-42 of the Santa Cruz County Proposed Budget prepared by the County Administrative 

Officer are attached. 


Approving Zone 7 budget supports the Strategic Plan goal of improving the City’s 

infrastructure. The Strategic Plan specifically lists the Pajaro River Flood Control Project as a 

priority project. 


There will be no direct financial impact to the City. Zone 7 budget expenditures will be paid 

from existing Zone 7 funds, bond proceeds and services charge revenues for FY 2011/2012. 

ALTERNATIVES: 

Alternatives include not approving the Zone 7 budget or approving the budget with conditions. 

ATTACHMENTS: 

Attachment 1 – Proposed 2011/2012 Zone 7 Budget 

cc: 

City Attorney 


M:\Public Works & Utilities\Staff Reports\2011\6-14\Zone 7 Budget Staff Report 2011.doc

Attachment 1 


Attachment 1 





WATSONVILLE APPROVING THE PROPOSED FY 2011-2012 SANTA 

CRUZ COUNTY FLOOD CONTROL AND WATER CONSERVATION 

DISTRICT ZONE 7 BUDGET AS APPROVED BY THE ZONE 7 BOARD 

OF DIRECTORS 

WHEREAS, funding needs to be provided in the FY 2011-2012 Zone 7 Budget to 

pay for proposed work; and 

WHEREAS, this action requires the concurrence by the Zone 7 Board of 

Directors, the City Council of the City of Watsonville, and the Santa Cruz County Flood 

Control and Water Conservation District Board of Directors. 



1. That the proposed FY 2011-2012 Zone 7 Budget for the Santa Cruz 

County Flood Control and Water Conservation District, Zone 7 is hereby approved. 

2. The proposed FY 2011-2012 Zone 7 Budget consists of the following line 

items as described in the Santa Cruz County Flood Control and Water Conservation 

District, Zone 7—2011-2012 Proposed Budget, attached hereto and incorporated herein 

as Exhibit “A.” 

******************************* 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\Zone 7 Budget 2011.docx 

ri 6/8/2011 9:07:05 AM 

AJS ______ CJP ______ PWU ______ 

1

ZONE 7 BUDGET 

Expenditures 2011/2012 

Maintenance & Operations on the Levee System $677,967 

Pajaro River 1601/404 Maintenance Applications $50,000 

General Engineering & Public Service $250,000 

Permit and Environmental Studies (staff) $150,000 

Permit and Monitoring Requirements $125,000 

County Counsel Service $25,000 

Alert Monitoring Maintenance $75,000 

Army Corps Flood Control Projects $600,000 

Prop 1E Stormwater Management $4,775,000 

Levee Sealcoat $0 

Flood Control Project Advocacy $71,000 

Bank Stabilization $100,000 

Pajaro River Watershed Joint Powers Authority $35,000 

Operating Transfer Out (Debt Service) $409,957 

Contingencies $146,000 

TOTAL $7,489,924 

Exhibit “A 


CITY COUNCIL 4.7




WATSONVILLE APPOINTING MEMBER TO THE CITY OF 

WATSONVILLE PERSONNEL COMMISSION 

[DISTRICT 3] 

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. 



1. That Council Member Hurst hereby nominates Dobie Jenkins for 

appointment to the Personnel Commission (expires November 2012), representing 

District 3. 

2. That the Council hereby approves such appointment. 

3. 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) 

Q:\COUNCIL\2011\061411\Personnel Commission 2011.docx 

ri 6/7/2011 1:55:06 PM 

AJS ______ CJP ______ 

1




WATSONVILLE RATIFYING A MEMORANDUM OF UNDERSTANDING 

BETWEEN THE MUNICIPAL EMPLOYEE RELATIONS OFFICER OF 

THE CITY AND THE INTERNATIONAL ASSOCIATION OF 

FIREFIGHTERS, LOCAL 1272 FOR FISCAL YEARS 2011-2013 

WHEREAS, the delegate of the City of Watsonville Municipal Employee 

Relations Officer and the International Association of Firefighters, Local 1272, in 

accordance with provisions of the Milias-Myers-Brown Act (Section 3500 et seq. of the 

Government Code), City of Watsonville's Resolution No. 56-08 (CM), and City of 

Watsonville Administrative Rule V.1.1., met and conferred in good faith with reference to 

the matters set forth in a Memorandum of Understanding, a copy of which is attached 

hereto and incorporated herein by reference; and 

WHEREAS, the Council of the City of Watsonville after reviewing the 

Memorandum of Understanding hereby determines to ratify the Memorandum of 

Understanding. 



That the Memorandum of Understanding between the Municipal Employee 

Relations Officer and the International Association of Firefighters, Local 1272, attached 

hereto marked Exhibit “A,” and incorporated herein by this reference, is hereby ratified 

for the fiscal years July 1, 2011 to June 30, 2012; July 1, 2012 to June 30, 2013 or until 

a new agreement has been executed. 

******************************** 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\MOU Fire.docx 

ri 6/9/2011 4:48:46 PM 

1 

AJS ______ CJP ______

Exhibit “A” will be 

distributed when 

available.

CITY COUNCIL 6.1 (a) 





TO: 

FROM: 

SUBJECT: 


David A. Koch, Director of Public Works & Utilities 

Steve Palmisano, Water Division Manager 

Adoption of the 2010 Urban Water Management Plan 



It is recommended that City Council adopt the 2010 Urban Water Management Plan. 

DISCUSSION: 

Background. In 1984, the California Legislature enacted Assembly Bill 797, which is known 

as the Urban Water Management Planning Act. This act mandates that all urban water 

suppliers serving more than 3,000 customers or providing more than 3,000 acre-feet of water 

annually to develop an Urban Water Management Plan (UWMP). In order to comply with State 

water planning law the UWMP must be reviewed every five years and must be adopted after 

public review and hearing. It is then filed with the California Department of Water Resources 

(DWR). 

Purpose. The City of Watsonville’s 2010 UWMP revises the 2005 UWMP. This 2010 UWMP 

provides information on the present and future water demands and supplies and provides an 

assessment of the City’s water resource needs. The UWMP will act as a guide to maintain 

efficient use of urban water supplies, describe and evaluate existing and potentially available 

sources of water supply, to project population and future water demand, to promote 

conservation programs and policies, and to plan out strategies for responding to water 

shortages and drought conditions. DWR summarizes the status of all plans submitted 

statewide. DWR can use these plans as a resource to set targets, such as to track progress 

toward decreasing daily per capita urban water use throughout the state. The Plan is provided 

as Attachment 1. 


C:\Documents and Settings\Administrator\Local Settings\Temporary Internet Files\Content.Outlook\P2W7XFJI\UWMP Staff Report 

2011 c.doc

Grant Funding Eligibility. Adoption of an UWMP is required by the State of California to 

qualify for grant funding. The City has secured over $10 million in state grant funding over the 

last five years for projects such as the Recycled Water Facility, the Corralitos Fish Ladder, and 

the Manabe Wetlands Restoration project. Adoption of the UWMP will enable the City to 

qualify for future grant funding for additional projects including the Corralitos filter plant 

upgrade. 

City Water Supply. The City’s water is supplied from the groundwater in the Pajaro Valley 

Groundwater Basin and surface water from Corralitos and Browns Creeks. Fourteen 

groundwater wells and the Corralitos Filter Plant currently produce an average of 

approximately 6,900 acre-feet of water per year. All City water sources meet State and 

Federal drinking water standards. 

Water Supply Reliability. One of the main purposes of the UWMP is to demonstrate that 

water systems are adequately prepared to supply water under a variety of conditions. The City 

has made a number of preparations to provide for water during emergencies. Historically, the 

most common emergencies have been regional power outages and earthquakes. The City has 

learned from its experience of the 1989 Loma Prieta earthquake, and has taken many steps 

since then to prepare for similar situations. 

The City water system is designed as a network, so that if one source of water or a main 

pipeline is damaged, water can be supplied from another area of the city. Additionally, each 

area within the service system is served by multiple wells, thus limiting dependence on a single 

supply source. Nearly all source water sites are equipped with emergency back-up generators 

and fuel tanks that will keep the system operational during emergencies. 

Water Quality. Based on review of water quality monitoring data ranging from 1990 to the 

present, there are no significant changes in the City’s primary or secondary water quality 

standards. The City’s groundwater and surface water quality is very good and water quality 

objectives are consistently achieved at all sources. 

State Water Conservation Goals. The Water Conservation Bill of 2009, or SBx7-7, is water 

conservation legislation that seeks to achieve a 20% statewide reduction in per capita urban 

water use by December 31, 2020. The bill requires each urban retail water supplier to develop 

per capita water use targets to meet the 20% goal by 2020 and an interim 10% goal by 2015. 

The City of Watsonville service area is located in the Central Coast region, where the State 

has set a target level of 117 gallons per capita per day (gpcd). The City’s per capita water use 

has been trending downward over the last 15 years. Based on the years 2006 through 2010, 

the City’s daily per capita water use is 98.7 gpcd. Therefore, the City has already achieved and 

surpassed the State water conservation mandate for 2020. The City has been able to achieve 

such low levels of water use due to its long-term efforts to promote water conservation. Staff 

will continue to work towards achieving additional water conservation savings and expand its 

water conservation programs. 


C:\Documents and Settings\Administrator\Local Settings\Temporary Internet Files\Content.Outlook\P2W7XFJI\UWMP Staff Report 2011 c.doc

City Water Conservation Program. The Urban Water Management Planning Act requires 

that all water agencies implement a water conservation program. This program must address 

fourteen different types of water conservation, known as Demand Management Measures 

(DMMs). The City has implemented each of the DMMs and is in full compliance with the 

requirements of the Act. 

The City has made a good faith effort to promote water conservation in a variety of ways 

including public education, the use of local print and electronic English and Spanish language 

media, articles in the City’s newsletter, and inserts in the City utility bills. The City evaluates its 

programs on an ongoing basis and has been proactive in implementing changes and 

improving the effectiveness of its water conservation program. The Demand Management 

Measures (DMMs) are listed below, and are described in more detail in the attached UWMP: 

• Water survey programs for single-family and multifamily residential customers; 

• Residential plumbing retrofit 

• System water audits, leak detection, and repair 

• Metering with commodity rates for all new connections and retrofit of existing 

connections 

• Large landscape conservation programs and incentives 

• High-efficiency washing machine rebate program 

• Public information programs 

• School education programs 

• Conservation programs for commercial, industrial, and institutional accounts 

• Wholesale agency programs 

• Conservation pricing 

• Water conservation coordinator 

• Water waste prohibition 

• Residential ultra-low flush toilet replacement program 

Pajaro Valley Groundwater Basin Overdraft. Seawater intrusion in the Pajaro Basin, a 

result of groundwater overdraft, was first documented in 1953. Since then, annual water use 

has generally increased, and the basin continues to be in a state of overdraft. The Pajaro 

Valley groundwater basin is severely overdrafted, causing groundwater elevations to drop 

below sea level and leading to seawater intrusion, causing chloride contamination of 

groundwater wells up to three miles inland. Seawater intrusion is an immediate and a direct 

threat to the Pajaro Valley economy. The elevated chloride concentrations make the 

groundwater unusable for irrigation of the high value, salt sensitive crops in coastal region of 

the Pajaro Valley. Lost agricultural production has an estimated annual value of $372 million 

and would result in the loss of approximately 11,530 jobs. 

City Efforts to Address Groundwater Overdraft. The City has committed to reducing its use 

of groundwater to the maximum extent possible over the next 30 years, with a goal of no net 

increase in groundwater use during that period. The City hopes to achieve this goal by 

continuing to increase the production of recycled water, expand its water conservation efforts, 

and by increasing the use of surface water. 



• Recycled Water. The City has played a key role in addressing groundwater overdraft in 

the Pajaro Valley by taking the lead in designing, permitting, constructing, and operating 

the Recycled Water Facility, in coordination with the PVWMA. The City and PVWMA will 

continue to find ways to increase the utilization of our recycled water. 

• Water Conservation. Over the last 10 years, the population of the City’s water service 

area has increased by approximately 9500 residents. However, during that same time 

period, water use has decreased slightly. Residents and businesses are learning to 

conserve water, and the City will continue to educate our customers and provide 

incentives to conserve water. 

• The Corralitos Creek Water Supply and Fisheries Enhancement Project. Corralitos 

Creek provides about 15% of Watsonville’s drinking water. The proposed project would 

improve the long-term reliability and productivity of the water supply from Corralitos 

Creek. Currently, the City can only utilize water from the creek in the summer months, 

when the water runs clear. Once rains begin, the creek water becomes too silt-laden to 

be treated by the existing plant, and it must be shut down for the winter. A membrane 

filter plant would allow the City to treat water during the winter months, when water is far 

more plentiful, and would allow for increased water production from the facility. 

The Corralitos Creek provides critical habitat to the South-Central California Coast 

steelhead, a federally endangered species. Staff has worked closely with the National 

Marine Fisheries Service to determine how to best improve the habitat for the 

steelhead. It turns out that more water is needed in the creek during the dry summer 

months to enhance conditions for juvenile steelhead. The project would allow the City to 

reduce the amount of water removed from the creek for water supply in the summer 

months, allowing more water to remain in the creek for the fisheries. The majority of the 

water production would then be shifted to the winter months, and would help reduce 

groundwater overdraft by increasing the total water supply available from the creeks. 

The City was recently awarded a grant of $1 million for construction of a new filter plant 

by the U.S. Bureau of Reclamation. The City hopes to begin construction of the new 

facility within the next year. 

Coordination with the Pajaro Valley Water Management Agency. The Pajaro Valley Water 

Management Agency (PVWMA) is a state-chartered water management district formed to 

manage existing and supplemental water supplies. The Agency’s primary goals are to reduce 

groundwater overdraft and to provide and ensure sufficient water supplies for present and 

anticipated needs within the Pajaro Valley. 

PVWMA Projects. PVWMA has completed a number of important projects to help reduce 

overdraft, retard seawater intrusion and protect water quality within the basin. PVWMA has 

constructed the Harkins Slough Recharge Project and the Coastal Distribution System (CDS) 

Project, which is used to distribute water from the Recycled Water Facility. At full operations, 

the Recycled Water, Harkins Slough blend water, and additional groundwater blend supplies 

will allow the distribution of up to 7,150 acre-feet per year (AFY) to off-set groundwater 



pumping by agricultural water users in the Pajaro Valley coastal area. 


Adopting the Urban Water Management Plan supports the Strategic Plan goal of improving the 

City’s infrastructure. 


There will be no direct financial impact to the City. However, adoption of an Urban Water 

Management Plan is required by the State in order to qualify for grant funding. 

ALTERNATIVES: 

Alternatives include not adopting the Urban Water Management Plan. 

ATTACHMENTS: 

None 

cc: 

City Attorney 



CITY COUNCIL 6.1 (e) 



WATSONVILLE APPROVING THE CITY OF WATSONVILLE 2010 

URBAN WATER MANAGEMENT PLAN 

WHEREAS, Section 10620 of the California Water Code mandates that every 

supplier providing water to more than 3,000 customers prepare and adopt an Urban 

Water Management Plan (“Plan”); and 

WHEREAS, the Plan needs to be reviewed every five (5) years and must be 

adopted after a public review and hearing; and 

WHEREAS, notice has been properly given as required by and according to the 

provisions of Section 6066 of the Government Code; and 

WHEREAS, on June 14, 2011, the Council afforded every interested person an 

opportunity to comment on the Plan either in writing or orally. 



1. That the City of Watsonville 2010 Urban Water Management Plan, a copy 

of which is attached hereto and incorporated herein by this reference, is hereby 

approved. 

2. That the Public Works Director, or his designee, is hereby directed to 

submit a copy of this Plan no later than thirty (30) days after adoption to the California 

Department of Water Resources (DWR), the California State Library, and the County of 

Santa Cruz, pursuant to Subsection (a) of Section 10644 of the California Water Code. 

**************************** 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\Urban Water 2010.docx 

ri 6/7/2011 4:32:18 PM 

AJS ______ CJP _____ PWU ______ 

1


2010 Urban Water 

Management Plan


LIST OF TABLES ............................................................................................................................................. 2 

Section 1 – Plan Preparation ........................................................................................................................ 5 

Introduction .............................................................................................................................................. 5 

Coordination ............................................................................................................................................. 5 

Contact Information ................................................................................................................................. 7 

Section 2 – System Description .................................................................................................................... 8 

Service Area and Physical Description ..................................................................................................... 9 

Climate ...................................................................................................................................................... 9 

Population .............................................................................................................................................. 10 

Section 3 - System Demands ...................................................................................................................... 12 

Per Capita Water Use ............................................................................................................................. 12 

Past, Current, and Projected Water Use ............................................................................................... 14 

Lower Income Water Allotment ............................................................................................................ 17 

Section 4 - System Supplies........................................................................................................................ 19 

Water Supply .......................................................................................................................................... 19 

Groundwater ...................................................................................................................................... 20 

Basin Management Plan ........................................................................................................................ 21 

Overdraft in the Pajaro Valley Basin ................................................................................................. 22 

Other Potential Water Supplies ......................................................................................................... 22 

Groundwater Wells ............................................................................................................................ 22 

Surface Water Sources ....................................................................................................................... 23 

Water Conservation ........................................................................................................................... 23 

Wastewater Collection and Treatment ................................................................................................. 24 

Proposed PVWMA Water Supply Projects ............................................................................................ 27 

Section 5 - Water Supply Reliability and Water Shortage Contingency Planning .................................... 28 

Water Shortage Contingency Ordinance/Resolution ........................................................................... 30 

Stages of Action .................................................................................................................................. 30 

Mandatory Prohibitions on Water Wasting ...................................................................................... 30 

Monitoring Program ........................................................................................................................... 31 

Analysis of Revenue Impacts of Reduced Sales During Shortages ....................................................... 32 

Reduction Measuring Mechanism ......................................................................................................... 32 

1

Water Quality .......................................................................................................................................33 

Climatalogical Considerations...............................................................................................................34 

Section 6 -Demand Management Measures ..............................................................................................38 

A. Water Survey Programs for Single Family Residential and Multi Family Residential Customers ..39 

B. Residential Plumbing Retrofit ..........................................................................................................40 

C. System Water Audits, Leak Detection, and Repair...........................................................................41 

D. Metering with Commodity Rates for all new Connections and Retrofit of Existing Connections..42 

E. Large Landscape Conservation Programs and Incentives ................................................................43 

F. High-efficiency Washing Machine Rebate Programs........................................................................45 

G. Public Information Programs............................................................................................................46 

H. School Education Programs ............................ .................................................................................48 

I. Conservation Programs for Commercial, Industrial, and Institutional Accounts .............................49 

J. Wholesale Agency Programs .............................................................................................................50 

K. Conservation Pricing .........................................................................................................................51 

L. Water Conservation Coordinator ......................................................................................................52 

M. Water Waste Prohibition..................................................................................................................53 

N. Residential Ultra-lowflush Toilet Replacement Programs ..............................................................54 

Section 7 –Climate Change ...................................................................................................................55 

Introduction...........................................................................................................................................55 

Background............................................................................................................................................56 

Mitigation Measures ....................................... .....................................................................................57 

Adaptation Measures............................................................................................................................59 

Summary................................................................................................................................................60 

Appendix A -Public Notification Documents (on file in the Office of the City Clerk)………............……………A-1 

Appendix B -PVWMA Basin Management Plan 2002 (on file in the Office of the City Clerk)………..….…….A-4 

Appendix C -City of Watsonville Water Supply and Distribution Emergency Response Plan (on file in the 

Office of the City Clerk)….….............................................................................................................. .......A-156 

Appendix D -Draft Resolution Declaring a Water Supply Emergency and Establishing Water Use Reductions 

(on file in the Office of the City Clerk)………………………....................……….............…………………………….……A-293 

Appendix E -Water Conservation Programs and Public Education Materials (on file in the Office of the City 

Clerk)..................................................................................................................................................….…A-304 

2

LIST OF TABLES 

TABLE 1.1 – Coordination with Appropriate Agencies ................................................................................. 6 

TABLE 2.1 – Service Area Climate ............................................................................................................... 10 

TABLE 2.2 – Population: Current and Projected ........................................................................................ 10 

TABLE 3.1 – Base Period Ranges ................................................................................................................. 12 

TABLE 3.2 – Base Daily Per Capita Water Use - 10-to 15-Year Ranges ....................................................... 13 

TABLE 3.3 – Base Daily Per Capita Water - 5-Year Range .......................................................................... 13 

TABLE 3.4 – Water Deliveries - actual, 2005 ............................................................................................... 14 

TABLE 3.5 – Water Deliveries - actual, 2010 ............................................................................................... 15 

TABLE 3.6 – Water Deliveries – Projected, 2015 ........................................................................................ 15 

TABLE 3.7 – Water Deliveries – Projected, 2020 ........................................................................................ 16 

TABLE 3.8 – Water Deliveries – Projected, 2025, 2030 , 2035 ................................................................... 16 

TABLE 3.9 – Additional Water Uses and Losses .......................................................................................... 17 

TABLE 3.10 – Total Water Use .................................................................................................................... 17 

TABLE 4.1 – Water Supplies – Current and Projected ................................................................................ 19 

TABLE 4.2 – Groundwater - Volume Pumped ............................................................................................. 20 

TABLE 4.3 – Groundwater - Volume Projected to be Pumped ................................................................... 21 

TABLE 4.4 – Participating Agencies ............................................................................................................. 24 

TABLE 4.5 – Recycled Water – Wastewater Collection and Treatment ..................................................... 25 

TABLE 4.6 – Recycled Water – Non Recycled Wastewater Disposal .......................................................... 25 

TABLE 4.7 – Recycled Water – Potential Future Use .................................................................................. 26 

TABLE 4.8 – Recycled Water – 2005 UWMP Use Projection Compared to 2010 Actual ............................ 26 

TABLE 4.9 – PVWMA Water Supply Projects .............................................................................................. 27 

TABLE 5.1 – Factors Resulting in Inconsistency of Supply .......................................................................... 29 

TABLE 5.2 – Emergency Response .............................................................................................................. 29 

TABLE 5.3 – Water Shortage Contingency – Mandatory Prohibitions........................................................ 33 

TABLE 5.4 – Water Shortage Contingency – Consumption Reduction Methods ....................................... 33 

TABLE 5.5 – Water Shortage Contingency – Penalties and Charges .......................................................... 33 

TABLE 5.6 – Basis of Water Year Data ........................................................................................................ 35 

TABLE 5.7 – Supply Reliability – Historic Conditions of Rainfall ................................................................. 35 

3

TABLE 5.8 – Water Shortage Contingency – Rationing Stages to Address Water Supply Shortages ......... 35 

TABLE 5.9 – Supply Reliability – Historic Conditions .................................................................................. 36 

TABLE 5.10 – Supply and Demand Comparison – Normal Year .................................................................. 36 

TABLE 5.11 – Supply and Demand Comparison – Single Dry Year ............................................................. 37 

TABLE 5.12 – Supply and Demand Comparison – Multiple Dry-Year Events ............................................. 37 

TABLE 6.A. – Water Survey Programs ......................................................................................................... 39 

TABLE 6.B. – Toilet Replacement Program ................................................................................................. 40 

TABLE 6.C.1 – Unaccounted for Water ....................................................................................................... 41 

TABLE 6.C.2 – Distribution Lines Maintenance and Costs .......................................................................... 41 

TABLE 6.F – Washing Machine Program ..................................................................................................... 45 

TABLE 6.G – Public Information Programs ................................................................................................. 47 

TABLE 6.H – School Education Programs .................................................................................................... 48 

TABLE 6.I – Commerical Water Survey Programs ....................................................................................... 49 

TABLE 6.K – Water Rates ............................................................................................................................ 51 

TABLE 6.L – Water Conservation Coordinator ............................................................................................ 52 

TABLE 6.N – Toilet Replacement Program .................................................................................................. 54 

TABLE 7.1 – Solar Projects .......................................................................................................................... 58 

4

Section 1 – Plan Preparation 

Introduction 

In 1984, the California Legislature enacted Assembly Bill 797, which is known as the Urban Water 

Management Planning Act. This act mandates that all urban water suppliers serving more than 3,000 

customers or providing more than 3,000 acre-feet of water annually to develop an Urban Water 

Management Plan (UWMP). In order to comply with State water planning law the UWMP must be 

reviewed every five years and must be adopted after public review and hearing. It is then filed with the 

California Department of Water Resources (DWR). 

The City of Watsonville’s 2010 UWMP revises the 2005 UWMP. This 2010 UWMP provides information 

on the present and future water demands and supplies and provides an assessment of the City’s water 

resource needs. The UWMP will act as a guide to maintain efficient use of urban water supplies, 

describe and evaluate existing and potentially available sources of water supply, to project population 

and future water demand, to promote conservation programs and policies, and to plan out strategies for 

responding to water shortages and drought conditions. 

DWR summarizes the status of all plans submitted statewide. DWR can use these plans as a resource to 

set targets, such as to track progress toward decreasing daily per capita urban water use throughout the 

state. 

Coordination 

#4. Each urban water supplier shall coordinate the preparation of its plan with other 

appropriate agencies in the area, including other water suppliers that share a common 

source, water management agencies, and relevant public agencies, to the extent 

practicable (10620(d)(2)). 

City of Watsonville staff in the Public Works and Utilities department met and coordinated the 

development of this plan in part with the Community Development department. 

The City also worked with two adjacent County water providers - Soquel Creek Water District and the 

City of Santa Cruz Water Department during the preparation of this plan. 

In addition, the City works cooperatively with the Pajaro Valley Water Management Agency (PVWMA). 

The PVWMA overlies the City water service area. The California Legislature created the PVWMA in 1984 

to provide for the effective and efficient management of present and future water supplies in the Pajaro 

Valley. PVWMA’s mission is to efficiently and economically manage existing and supplemental water 

supplies in order to prevent further increase in, and to accomplish continuing reduction of, long-term 

overdraft and to provide and ensure sufficient water supplies for present and anticipated needs within 

its boundaries. 

5

Coordinating Agencies 

Table 1.1 - (UWMP Table 1) 

Coordination with appropriate agencies 

Participated 

in developing 

the plan 

Commented 

on the draft 

Attended 

public 

meetings 

Was 

contacted 

for 

assistance 

Was sent a 

copy of the 

draft plan 

Was sent a 

notice of 

intention 

to adopt 

City of Santa Cruz, Water Dept. X X 

Not 

involved / 

No 

information 

Soquel Creek Water District X X 

Pajaro Valley Water Management 

Agency 

X 

City of Watsonville, Public Works X X X X 

City of Watsonville, Community 

Development 

General public 

X X X X 

X 

#6. Every urban water supplier required to prepare a plan pursuant to this part shall, at 

least 60 days prior to the public hearing on the plan required by Section 10642, notify 

any city or county within which the supplier provides water supplies that the urban 

water supplier will be reviewing the plan and considering amendments or changes to the 

plan. The urban water supplier may consult with, and obtain comments from, any city or 

county that receives notice pursuant to this subdivision (10621(b)). 

#54. The urban water supplier shall provide that portion of its urban water management 

plan prepared pursuant to this article to any city or county within which it provides 

water supplies no later than 60 days after the submission of its urban water 

management plan (10635(b)). 

The City contacted both the County of Santa Cruz and the City Council of Watsonville on April 1, 2011 

indicating that an UWMP was being revised for 2010. Documents are included in Appendix A. The City 

Council of Watsonville will hear the UWMP on June 14, 2011. It is projected that the County of Santa 

Cruz will receive a copy of an approved UWMP by August 14, 2011. 

#55. Each urban water supplier shall encourage the active involvement of diverse social, 

cultural, and economic elements of the population within the service area prior to and 

during the preparation of the plan (10642). 

#56. Prior to adopting a plan, the urban water supplier shall make the plan available for 

public inspection and shall hold a public hearing thereon. Prior to the hearing, notice of 

the time and place of hearing shall be published within the jurisdiction of the publicly 

owned water supplier pursuant to Section 6066 of the Government Code. The urban 

water supplier shall provide notice of the time and place of hearing to any city or county 

within which the supplier provides water supplies. A privately owned water supplier shall 

provide an equivalent notice within its service area (10642). 

The City informed the public in the local newspaper, the Register Pajaronian, dated May 31, 2011 and 

June 7, 2011 that a UWMP would be available for public comment at the June 14, 2011 City Council 

meeting and encouraged the public’s participation. In addition, the City’s website offered the same 

information. Appendix A will include copies of the newspaper and website announcements. 

6

#7. The amendments to, or changes in, the plan shall be adopted and filed in the manner 

set forth in Article 3 (commencing with Section 10640) (10621(c)). 

Make a note if any changes are made to the UWMP after it is adopted by the City Council. 

#57. After the hearing, the plan shall be adopted as prepared or as modified after the 

hearing (10642). 

A copy of the adoption resolution will be included in Appendix F. 

#58. An urban water supplier shall implement its plan adopted pursuant to this chapter 

in accordance with the schedule set forth in its plan (10643). 

59. An urban water supplier shall submit to the department, the California State Library, 

and any city or county within which the supplier provides water supplies a copy of its 

plan no later than 30 days after adoption. Copies of amendments or changes to the 

plans shall be submitted to the department, the California State Library, and any city or 

county within which the supplier provides water supplies within 30 days after adoption 

(10644(a)). 

Within 30 days of submitting the UWMP to DWR, the adopted UWMP will be submitted to the California 

State Library and to the County of Santa Cruz. 

#60. Not later than 30 days after filing a copy of its plan with the department, the urban 

water supplier and the department shall make the plan available for public review during 

normal business hours. (10645). 

The 2010 UWMP is available for public review on the City’s website (http://www.ci.watsonville.ca.us) 

and in the City’s library. 

Contact Information 

For any questions or comments regarding the preparation of this document please contact: 

Beau Kayser 

320 Harvest Drive 


(831) 768-3193 

bkayser@ci.watsonville.ca.us 

7

Section 2 – System Description 

8

#8. Describe the service area of the supplier (10631(a)). 

Service Area and Physical Description 

Watsonville is located along the Monterey Bay between Santa Cruz and Monterey, in the County of 

Santa Cruz. The City lies in the heart of the Pajaro Valley, surrounded by prime agricultural land and 

wetlands. Water is an integral component throughout the Watsonville environs. Five small lakes are 

located near the city’s northern and eastern boundary. The City is bounded by Corralitos Creek to the 

north, Salisipuedes Creek to the east, and the Pajaro River to the south. The Pajaro River forms the 

boundary between Santa Cruz and Monterey Counties. Several small creeks and sloughs meander 

through the city and extend to the south and west of Highway 1, which form what is referred to as the 

Watsonville Slough System. 

When the City of Watsonville was named after Judge John H. Watson and incorporated in 1868, it was a 

small settlement of less than 1,000 residents. It has since grown to a city of over 51,000 in 2010 (source: 

US Census Bureau). 

The water system originated in 1877 when water was piped from the Corralitos area to a reservoir on 

Whiskey Hill (now Freedom Reservoir on Freedom Boulevard.). It served the small community of 

Watsonville under the name of the Watsonville Water and Light Company until the City acquired it in 

1927. 

In 1931 a slow sand filtration plant was constructed in Corralitos to filter the raw water coming from 

Corralitos and Browns Creeks. By 1979, the water system had grown to closely represent its current 

state. It consisted of 8 pressure zones, 10 wells, 8 storage facilities, over 100 miles of pipeline, and a 

slow sand filter water treatment plant. Today, the City's water service area is larger than the City limits, 

extending into the unincorporated areas of Santa Cruz County. These areas include parts of Freedom 

and Corralitos. The service area consists of 9 hydraulic pressure zones, 14 wells, 8 reservoirs and water 

storage facilities, 9 booster stations, over 150 miles of pipelines, and a slow sand filter water treatment 

plant. Today, the City's regional water system delivers to a population of over 65,000 customers. 

Climate 

#9. (Describe the service area) climate (10631(a)). 

Watsonville has a northern Mediterranean coastal climate, with dry, mild summers and cool winters. 

The annual average precipitation in Watsonville is 23.27 inches, while precipitation in the nearby Santa 

Cruz Mountains averages approximately 50 inches per year. Table 2.1 provides Eto 1 , rainfall and 

temperature information for the Watsonville area. 

1 Eto, Evapotranspiration, is used to indicate how much water is required per month to properly account for soil 

moisture loss via plant growth and plant moisture evaporation 

9

Table 2.1 - Service Area Climate 

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 

Standard Monthly Average Eto 1 1.85 2.04 3.40 4.24 4.76 5.20 4.99 4.52 3.81 3.11 1.85 1.47 41.24 

Average Rainfall (inches) 2 4.72 4.45 3.94 1.61 0.51 0.12 0.08 0.08 0.28 1.06 2.99 3.43 23.27 

Average Temperature ( o F) 2 50 52 53.5 56.5 58.5 61 62.5 63 63 60 54 49.5 57.0 

1 Data for CIMIS Station 111 from January 2006 to December 2010, downloaded on 2/17/10: www.cimis.water.ca.gov 

2 

Data for average rainfall and temperature, 2/17/11, http://www.usclimatedata.com/climate.php?location=USCA1215 

Population 

#10. (Describe the service area) current and projected population . . . The projected 

population estimates shall be based upon data from the state, regional, or local service 

agency population projections within the service area of the urban water supplier . . . 

(10631(a)). 

#11. . . . (population projections) shall be in five-year increments to 20 years or as far as 

data is available (10631(a)). 

Table 2.2 shows the population total for the City water service area in 2010, with projections to 2035. 

Population projections are drawn from information provided by the Association of Monterey Bay Area 

Governments (AMBAG, Population Forecast Report) and the City of Watsonville Information Services, 

Geographic Information Systems (GIS) Department, along with figures collected from U.S. Census 2010 

data. To reiterate, the water service area of Watsonville extends beyond the City limits and into 

unincorporated Santa Cruz County, including parts of Freedom and Corralitos. 

Table 2.2 (UWMP Table 2) 

Population - current and projected 

2010 2015 2020 2025 2030 2035 Data Source 

Service area population 65,739 66,826 68,759 71,318 73,691 75,073 AMBAG 1 , C.O.W. GIS 

1 

Association of Monterey Bay Area Governments, document dated 4/1/2011. Population includes water service areas of 

Watsonville, Corralitos, and Freedom. 

#12. Describe . . . other demographic factors affecting the supplier's water 

management planning (10631(a)). 

Constrained by environmental features, farmland, and County growth management policies, the City has 

developed in a compact, dense pattern. These constraints contribute to the City’s density of 7,129 

persons per square mile, compared to 315 in the unincorporated County, and 4,065 in the City of Santa 

Cruz. 

According to 2010 US Census data, Watsonville is the fastest growing city in Santa Cruz County, 

experiencing great population growth since 1980. This growth can be attributed to, among other things, 

10

the availability of more affordable housing in Watsonville than in other County communities (including 

the development of several large housing projects), in-migration of agricultural workers, and 

annexations of inhabited areas. 

The City provides significant support, housing, processing, and transportation facilities to the 

agricultural, manufacturing, health, real estate, wholesale and retail trade industries. Furthermore, 

Watsonville provides a wide range of access to employment, shopping, and recreation opportunities and 

government services for south County residents. 

Despite its growth, within the region Watsonville continues to be a leader in preservation of productive 

agricultural land and significant environmental resources, including hundreds of acres of open space, 

parks, sloughs, wetlands, and coastal zone lands. 

11

Per Capita Water Use 

Section 3 - System Demands 

#1. An urban retail water supplier shall include in its urban water management plan . . . 

due in 2010 the baseline daily per capita water use, urban water use target, interim 

urban water use target, and compliance daily per capita water use, along with the bases 

for determining those estimates, including references to supporting data (10608.20(e)). 

The City of Watsonville uses information provided by its Information Services, Geographic Information 

Systems Department (GIS) and the Association of Monterey Bay Area Governments (AMBAG) for its 

population figures, and its Public Works Customer Services Department, which is responsible for all 

water meter reads, for determining the amount of water supplied by the City. 

In order to determine its baseline daily per capita water use, the City referenced the total urban water 

supplied in the year 2008 (per DWR methodologies). See Table 3.1. Because the volume of recycled 

water delivered was less than 10% (there was no recycled water delivered in 2008), a 10 year range was 

selected to determine the base period range. It is important to note that the City develops these 

baselines for its water service area only and not on a regional level. 

10- to 15-year base period 

5-year base period 


Base period ranges 

Base Parameter Value Units 

2008 total water deliveries 8,806.56 AFY 

2008 total volume of delivered recycled water 0 AFY 

2008 recycled water as a percent of total deliveries 0 percent 

Number of years in base period 1 10 years 

Year beginning base period range 2001 

Year ending base period range 2 2010 

Number of years in base period 5 years 

Year beginning base period range 2006 

Year ending base period range 3 2010 

Units: 

acre-feet per year 

1 If the 2008 recycled water percent is less than 10 percent, then the first base period is a continuous 10-year period. If the amount of 

recycled water delivered in 2008 is 10 percent or greater, the first base period is a continuous 10- to 15-year period. 

2 The ending year must be between December 31, 2004 and December 31, 2010. 

3 

The ending year must be between December 31, 2007 and December 31, 2010. 

12

Table 3.2 indicates the 10 year range selected, years 2001 through 2010, along with the population 

served and the amount of water supplied. The base daily per capita water use is 104.4 gpcd. 

Sequence year 


Base daily per capita water use — 10- to 15-year range 

Base period year 

Calendar year 

Distribution 

System 

Population 

Daily system 

gross water use 

(mgd) 

Annual daily 

per capita 

water use 

(gpcd) 

Year 1 2001 56,236 6,431,644 114.4 

Year 2 2002 57,220 6,501,644 113.6 

Year 3 2003 58,222 6,318,082 108.5 

Year 4 2004 59,241 6,512,521 109.9 

Year 5 2005 60,277 6,269,233 104.0 

Year 6 2006 61,332 6,266,247 102.2 

Year 7 2007 62,405 6,540,795 104.8 

Year 8 2008 63,498 6,539,836 103.0 

Year 9 2009 64,609 6,200,548 96.0 

Year 10 2010 65,739 5,747,013 87.4 

Base daily per capita water use 104.4 

Units: 


Within the 10 year range, a 5 year base period range was also established. This 5 year range was chosen 

to be years 2006 through 2010. The base daily per capita water use is 98.7 gpcd. See Table 3.3. 

Sequence year 

Base period year 


Base daily per capita water use — 5-year range 

Calendar year 

Distribution 

System 

Population 

Daily system 

gross water use 

(mgd) 

Annual daily 

per capita 

water use 

(gpcd) 

Year 1 2006 61,332 6,266,247 102.2 

Year 2 2007 62,405 6,540,795 104.8 

Year 3 2008 63,498 6,539,836 103.0 

Year 4 2009 64,609 6,200,548 96.0 

Year 5 2010 65,739 5,747,013 87.4 

Base daily per capita water use 98.7 

Units: 


13

It is the State of California’s goal to achieve a 20% reduction in overall water usage in 2020 from today’s 

levels. The City of Watsonville service area is located in the Central Coast region, whose target level is 

123 gallons per capita per day (gpcd). The City has chosen Method 3 as its guideline to achieve and 

maintain a per capita water usage of 95% of the Central Coast regional level of 123 gpcd, which is 117 

gpcd. 

#25. Quantify, to the extent records are available, past and current water use, and 

projected water use (over the same five-year increments described in subdivision (a)), 

identifying the uses among water use sectors, including, but not necessarily limited to, 

all of the following uses: (A) Single-family residential; (B) Multifamily; (C) Commercial; 

(D) Industrial; (E) Institutional and governmental; (F) Landscape; (G) Sales to other 

agencies; (H) Saline water intrusion barriers, groundwater recharge, or conjunctive use, 

or any combination thereof; (I) Agricultural (10631(e)(1) and (2)). 

Past, Current, and Projected Water Use 

Water deliveries in 2005 and 2010 recorded by the City’s Customer Services Division and reported to 

DWR are summarized in Tables 3.4 and 3.5. 


Water deliveries - actual, 2005 

2005 

Metered Not metered Total 

Water use sectors # of accounts Volume # of accounts volume volume 

Single family 13,236 3,868 n/a n/a 3,868 

Multi-family 366 1,098 n/a n/a 1,098 

Commercial 1,285 1,127 n/a n/a 1,127 

Industrial 21 483 n/a n/a 483 

Institutional/governmental 205 41 n/a n/a 41 

Landscape 293 405 n/a n/a 405 

Agriculture - - n/a n/a 0 

Total 15,406 7,022 n/a n/a 7,022 

Units: 


14


Water deliveries - actual, 2010 

2010 


Water use sectors # of accounts Deliveries AFY # of accounts Deliveries AFY volume 

Single family 13,773 3650 n/a n/a 3,650 

Multi-family 233 943 n/a n/a 943 

Commercial 1,226 1058 n/a n/a 1,058 




Agriculture 1 505 n/a n/a 505 

Total 15,596 6943 n/a n/a 6,943 

Units: 


Water deliveries projected within the City’s water service area for 2015 through 2035 were calculated 

based on a combination of data; Urban Water Utility Statistics submitted to DWR from 1992-2010, 

population projections from Table 2.2, 10-year and 5-year base gpcd levels and Central Coast regional 

target gpcd levels. This projected information is shown in Tables 3.6 thru 3.8. 


Water deliveries - projected, 2015 

2015 


Water use sectors # of accounts Deliveries AFY # of accounts Deliveries AFY Volume 








Total 16,818 7,261 n/a n/a 7,261 

Units: 


15


Water deliveries - projected, 2020 

2020 


Water use sectors # of accounts Deliveries AFY # of accounts Deliveries AFY volume 








Total 18,135 7,394 n/a n/a 7,394 

Units: 


Water use sectors 


Water deliveries - projected, 2025, 2030, 2035 

# of 

accounts 

2025 2030 2035 

metered metered metered 

Deliveries # of Deliveries # of 

AFY accounts AFY accounts 

Deliveries 

AFY 

Single family 17,270 4,154 18,623 4,302 20,083 4,416 

Multi-family 292 871 315 902 340 926 

Commercial 1,537 1,158 1,658 1,198 1,788 1,231 

Industrial 18 368 19 383 20 393 

Institutional/governmental 39 173 42 116 46 9 

Landscape 399 445 430 461 464 473 

Agriculture 1 420 1 397 1 373 

Total 19,556 7,589 21,088 7,759 22,741 7,821 

Units: 


Because the City of Watsonville is a water supplier for its service area only, it does not record or forecast 

water demands of other agencies into its own water use targets. 

There is a percentage of unaccounted for water that is attributed to system losses. According to the 

EPA, in 2010 in the United States, it is estimated that on average 10-20% of a water system’s production 

can be classified as unaccounted for water 2 (system loss, leak, fire hydrant usage or damage, 

unauthorized use, etc.). The City’s water losses over the last 10 years average 6.55% of distributed 

2 http://water.epa.gov/infrastructure/sustain/wec_wp.cfm, dated 4/17/2011. 

16

water. See Demand Management Measure C, Table 6.2. If a water system is able to achieve a level of 

5% that is considered extremely efficient. Presently, the only projected water losses are based on 6.55% 

of the projected delivered water, Table 3.9. 


Additional water uses and losses 

Water use 1 2005 2010 2015 2020 2025 2030 2035 

Saline barriers n/a n/a n/a n/a n/a n/a n/a 

Groundwater recharge n/a n/a n/a n/a n/a n/a n/a 

Conjunctive use n/a n/a n/a n/a n/a n/a n/a 

Raw water n/a n/a n/a n/a n/a n/a n/a 

Recycled water n/a n/a n/a n/a n/a n/a n/a 

System losses 551 511 476 484 497 508 512 

Total 551 511 476 484 497 508 512 

Units: 


1 

Any water accounted for in Tables 3.4 through 3.8 are not included in this table. 

A summary of all water demands from the previous tables is shown in Table 3.10. 


Total water use 

Water use 2005 2010 2015 2020 2025 2030 2035 

Total water deliveries (from Tables 3.4 to 3.8) 7,022 6,943 7,261 7,394 7,589 7,759 7,821 

Sales to other water agencies n/a n/a n/a n/a n/a n/a n/a 

Additional water uses and losses (from Table 3.9) 551 511 476 484 497 508 512 

Total 7,573 7,454 7,737 7,878 8,086 8,267 8,333 

Units: 


#34. The water use projections required by Section 10631 shall include projected water 

use for single-family and multifamily residential housing needed for lower income 

households, as defined in Section 50079.5 of the Health and Safety Code, as identified in 

the housing element of any city, county, or city and county in the service area of the 

supplier (10631.1(a)). 

Lower Income Water Allotment 

The City of Watsonville 2008-2013 Housing Element identifies that of the City’s share of the County of 

Santa Cruz’s regional housing needs, 39% be designated to meet the needs of low, very low, and 

17

extremely low income households in the years 2007-2014. Therefore, the projected water demands for 

low income housing are figured as 39% of the water use. As a retail urban water supplier, the City of 

Watsonville must ensure that water supplies are available for these households. Tables 3.6 - 3.8 show 

the water use by various sectors projected from 2015 to 2035. Water use has been extrapolated based 

upon population estimates provided in the Watsonville General Plan, AMBAG, and the City’s GIS 

department. The City anticipates reductions in per-capita water use from 2010 onwards, as water 

conservation programs continue to be implemented and evaluated. The City has factored in water use 

projections for low income housing in the single and multi family residential deliveries row, Tables 3.6 

thru 3.8. 

#33. Urban water suppliers that rely upon a wholesale agency for a source of water shall 

provide the wholesale agency with water use projections from that agency for that 

source of water in five-year increments to 20 years or as far as data is available. The 

wholesale agency shall provide information to the urban water supplier for inclusion in 

the urban water supplier's plan that identifies and quantifies, to the extent practicable, 

the existing and planned sources of water as required by subdivision (b), available from 

the wholesale agency to the urban water supplier over the same five-year increments, 

and during various water-year types in accordance with subdivision (c). An urban water 

supplier may rely upon water supply information provided by the wholesale agency in 

fulfilling the plan informational requirements of subdivisions (b) and (c) (10631(k)). 

The City of Watsonville does not have any contracts with wholesale water agencies. 

#2. Urban wholesale water suppliers shall include in the urban water management plans 

. . . an assessment of their present and proposed future measures, programs, and 

policies to help achieve the water use reductions required by this part (10608.36). Urban 

retail water suppliers are to prepare a plan for implementing the Water Conservation Bill 

of 2009 requirements and conduct a public meeting which includes consideration of 

economic impacts (CWC §10608.26). 

The City of Watsonville has worked diligently to design, promote and carry out a very effective water 

conservation program. Many of these efforts are outlined in Section 6 – Demand Management 

Measures. They have proven successful and will be continued into the future. 

The Water Conservation Bill of 2009, or SBx7-7, is the water conservation component that seeks to 

implement water use reduction goals to achieve a 20% statewide reduction in urban per capita water 

use by December 31, 2020. The bill requires each urban retail water supplier to develop urban water 

use targets to help meet the 20% goal by 2020 and an interim 10% goal by 2015. 

In an effort for urban retail water suppliers to determine targets to help achieve water reduction targets 

DWR has established four compliance options for urban retail water suppliers to choose from. As 

mentioned above the City has chosen to adopt Method 3, which is to achieve 95% of the applicable 

state hydrologic region target as set forth in the State’s 20x2020 Water Conservation Plan. The City has 

chosen to comply to SBx7-7 as an individual agency and will include its reporting requirements in the 

2010, 2015, and 2020 UWMPs. 

While each retail agency is required to choose a compliance option in 2010, DWR allows for the agency 

to change its compliance option in 2015. This will allow the City to re-evaluate its water use targets for 

compliance. It anticipates more data to be available for targets calculation in the future. 

18

Section 4 - System Supplies 

#13. Identify and quantify, to the extent practicable, the existing and planned sources of 

water available to the supplier over the same five-year increments described in 

subdivision (a) (10631(b)). 

Water Supply 

Table 4.1 is a summary of the current and projected water supplies through 2035. During years of 

normal rainfall, the City utilizes a combination of surface water and groundwater supply sources. The 

City’s surface water treatment plant is capable of producing 2,400 acre feet per year (AFY). 

The City enjoys pre-1914 water rights on two creeks north of the City limits. The surface diversions are 

piped to the Corralitos Filter Plant (CFP) and provided treatment via slow sand filtration and disinfection. 

The CFP has a capacity of 2,400 AFY and currently produces an average of 900 AFY. The CFP generally 

operates spring through fall; during the rainy season the plant is usually shut down due to the high 

turbidity of the intake water. The City has operated without the CFP for extended periods, including 

when it was severely damaged during the 1989 Loma Prieta Earthquake. It did not resume full 

operation until 1996. 

The City’s 14 groundwater wells are capable of providing 21,600 AFY. The City does not purchase water 

from any wholesale water suppliers. The City’s wastewater treatment plant can provide up to 4,000 AFY 

of recycled water. Though this recycled water is treated to Title 22 standards it is not connected to the 

general distribution system and is intended for agricultural purposes only. 


Water supplies - current and projected 

Water supply sources 2010 2015 2020 2025 2030 2035 

Wholesaler 

Water Purchased From: 

supplied volume 

(yes /no) 

Wholesaler no n/a n/a n/a n/a n/a n/a 

Supplier-produced groundwater 21,600 21,600 21,600 21,600 21,600 21,600 

Supplier-produced surface water 2,400 2,400 2,400 2,400 2,400 2,400 

Transfers In n/a n/a n/a n/a n/a n/a 

Exchanges In n/a n/a n/a n/a n/a n/a 

Recycled Water 1,597 4,000 4,000 4,000 4,000 4,000 

Desalinated Water n/a n/a n/a n/a n/a n/a 

Other n/a n/a n/a n/a n/a n/a 

Total 25,597 28,000 28,000 28,000 28,000 28,000 

Units: 


19

#14. (Is) groundwater . . . identified as an existing or planned source of water available 

to the supplier . . . (10631(b))? 

Groundwater 

Fourteen groundwater wells owned and operated within the City of Watsonville water service area 

provide on average 7,600 acre-feet of water per year. City water is treated at each well site and meets 

or exceeds State and Federal drinking water standards. The City water service area and the locations of 

the City’s groundwater wells are shown on the map in Section 2, page 9. Because the recycled water is 

intended strictly for agricultural purposes it is not included in the total water supply volume, Table 4.2. 

The total water supply volume is thus figured as 24,000 AFY. 

#20. (Provide a) detailed description and analysis of the location, amount, and 

sufficiency of groundwater pumped by the urban water supplier for the past five years. 

The description and analysis shall be based on information that is reasonably available, 

including, but not limited to, historic use records (10631(b)(3)). 

Table 4.2 is a summary of the past five years of groundwater pumped within the water service area. The 

wells from which this groundwater was pumped are presented in the map in Section 2, page 9. The 

amount of the groundwater pumped, averaging less than 32% of the potential groundwater production, 

readily handled the City’s needs. 

Basin name(s) 


Groundwater - volume pumped 

Metered or Unmetered 2006 2007 2008 2009 2010 

Pajaro Basin Metered 7,915.0 7,642.0 8,465.9 7,388.6 6,727.8 

Groundwater as a percent of total water supply 33.0% 31.8% 35.3% 30.8% 28.0% 

Units: 


#21. (Provide a) detailed description and analysis of the amount and location of 

groundwater that is projected to be pumped by the urban water supplier. The 

description and analysis shall be based on information that is reasonably available, 

including, but not limited to, historic use records (10631(b)(4)). 

The City intends to continue pumping groundwater from its existing well sources. It is likely that 

additional sources will be explored for future use. At this time, the City’s wells are capable of providing 

for both current and projected water demands. The groundwater projected to be pumped, Table 4.3, is 

based on current water demands coupled with population changes. In addition, it is projected that the 

surface water allotment up to 2,400 acre feet per year will be available to supplement demand. 

20

Table 4.3 – (UWMP Table 19) 

Groundwater - volume projected to be pumped 

Basin name(s) 2015 2020 2025 2030 2035 

Pajaro Basin 7,737.1 7,877.7 8,085.9 8,267.4 8,333.1 

Percent of total water supply 30.3% 30.8% 31.6% 32.3% 32.6% 

Units: 


Basin Management Plan 

#15. (Provide a) copy of any groundwater management plan adopted by the urban 

water supplier, including plans adopted pursuant to Part 2.75 (commencing with Section 

10750), or any other specific authorization for groundwater management (10631(b)(1)). 

#16. (Provide a) description of any groundwater basin or basins from which the urban 

water supplier pumps groundwater (10631(b)(2)). 

#17. For those basins for which a court or the board has adjudicated the rights to pump 

groundwater, (provide) a copy of the order or decree adopted by the court or the board 

(10631(b)(2)). 

#18. (Provide) a description of the amount of groundwater the urban water supplier has 

the legal right to pump under the order or decree (10631(b)(2)). 

In 1984, the Pajaro Valley Water Management Agency (PVWMA) was formed by California State statute 

(the Agency Act). The agency was formed to serve the common benefit of all water users and to 

manage water resources within the Pajaro Valley Basin for all beneficial uses in the public interest. 

Specific language in the Act recognizes the importance of agriculture to the area, and designates, with 

the exception of Aromas, that any future imported water be used for agricultural purposes only, to 

restrain inducements to urbanization. In November 1984, voters within the boundaries of the newly 

created agency overwhelmingly approved its establishment. 

A Basin Management Plan (BMP) was prepared and adopted in 1993 that defined and analyzed 33 

management measures that could potentially correct groundwater shortfall and seawater intrusion 

problems of the Pajaro Valley Basin. 

The City of Watsonville uses approximately 10 percent of the groundwater pumped from the Pajaro 

Valley Basin. The balance of the water is used for agricultural irrigation and some industrial uses. The 

PVWMA prepared the Basin Management Plan 2000 (BMP 2000) to address water resources 

management issues in the Pajaro Valley. The BMP was revised and adopted in 2002 and a copy of this 

plan is provided in the Appendix B. The BMP provides a review and update of previous water supply 

studies in order to clearly outline the extent of the Pajaro Valley’s over-pumping and seawater intrusion 

problems. The BMP also evaluates available options and recommends the most cost-effective and 

environmentally sound set of solutions for solving the over-pumping and seawater intrusion problems. 

Environmental documentation has been completed for a series of local water supply projects, and the 

PVWMA is now constructing several of these projects. An aggressive water conservation program has 

also been developed (Water Conservation 2000). 

21

#19. For basins that have not been adjudicated, (provide) information as to whether the 

department has identified the basin or basins as overdrafted or has projected that the 

basin will become overdrafted if present management conditions continue, in the most 

current official departmental bulletin that characterizes the condition of the 

groundwater basin, and a detailed description of the efforts being undertaken by the 

urban water supplier to eliminate the long-term overdraft condition (10631(b)(2)). 

Overdraft in the Pajaro Valley Basin 

The key to eliminating seawater intrusion is to reduce groundwater pumping to within the sustainable 

basin yield. This can be accomplished in one of two ways - reduce demand (with demand management 

and/or land retirement) or increase management and availability of supply (by employing increased 

levels of conservation and developing new supplemental water supplies). 

With basin-wide pumping as it presently exists, the sustainable basin yield is approximately 25,000 acrefeet 

per year. This is the level of pumping that the groundwater basin can sustain without inducing 

seawater intrusion. With an average of approximately 70,000 acre-feet per year of groundwater 

pumping, there is an existing shortfall of approximately 45,000 acre-feet per year. Once the additional 

5,000 acre-feet per year of increased conservation is achieved, there will be an annual shortfall of 

approximately 40,000 acre-feet per year (assuming current demand). 

The basin sustainable yields can be increased if pumping is eliminated in the coastal area. The 

sustainable basin yield with no pumping in an area immediately adjacent to the coast is approximately 

48,000 acre-feet per year, double what it is with basin-wide groundwater pumping reductions. Thus, 

coastal pumping reduction reduces the existing shortfall by over 50% to approximately 20,000 acre-feet 

per year. 

PVWMA is currently updating its BMP and will use this to develop supplemental water supplies to 

address the groundwater pumping demand that is in excess of the sustainable basin yield. 

The City of Watsonville currently pays an augmentation fee to the PVWMA to address the existing 

overdraft. The PVWMA uses these funds to implement their Basin Management Plan. 

The City pays fees to the PVWMA based on the quantity of water extracted from groundwater sources. 

These payments provide a significant source of funds to the PVWMA, and support the proposed water 

projects that will ultimately prevent further groundwater overdraft and seawater intrusion. 

Other Potential Water Supplies 

The City’s Water Supply and Distribution Master Plan identified a number of water sources available to 

the City. The following is a general description of each. 

Groundwater Wells 

New wells can be placed within the valley hydraulically upstream of the seawater intrusion areas. 

However, additional wells may contribute to the groundwater overdraft, and would be considered a 

short-term solution until other alternatives are developed and implemented by the PVWMA. 

22

Surface Water Sources 

Both the Corralitos and Browns Creeks could be better utilized as surface water sources. Currently, the 

filter plant cannot operate when the intake water has a turbidity of greater than 10 NTU (Nephelometric 

Turbidity Units). Heavy rains create high turbidity in the creeks, making the filter plant inoperable 

during the periods of highest flow. The City continues to explore options to allow year-round use of the 

filter plant, which could provide a substantial increase to the City surface water supply. Most recently in 

2009, the City conducted a successful pilot study on the potential of a ceramic membrane filtration plant 

capable of producing up to 2.5 MGD, even during times of high turbidity. The water could be used 

directly through the Corralitos Filter Plant or diverted to storage and ground water recharge. Various 

lakes exist in the area and could be used for surface water storage. The lakes have poor recharge 

potential, but could be used for irrigation supply or diverted to better recharge areas during non-runoff 

periods. 

Water Conservation 

The PVWMA Basin Management Plan estimates that approximately 500 acre-feet of water can be saved 

annually through City water conservation programs. The City believes this number is too low and 

anticipates up to 1,000 acre-feet per year of water savings by 2020. In 1991 the City Council approved a 

Water Waste Ordinance, discussed in the Section 6: Demand Management Measures section of this 

report. 

#24. Describe the opportunities for exchanges or transfers of water on a short-term or 

long-term basis (10631(d)). 

The City does not have any plans to transfer or exchange water. However, the PWMA entered into an 

agreement for the assignment of 6,260 AFY of contracted CVP water from the Mercy Springs Water 

District in November 1998. The agency has explored options to exercise this agreement through 

construction of a pipeline to link the Pajaro Valley with the San Felipe water system. This is detailed in 

the attached PVWMA Basin Management Plan. Currently, this option is not being considered. 

#31. Describe the opportunities for development of desalinated water, including, but not 

limited to, ocean water, brackish water, and groundwater, as a long-term supply 

(10631(i)). 

Desalination of wastewater, groundwater, or seawater is an option that has been explored in the 

PVWMA Basin Management Plan. It is generally considered cost-prohibitive, and is not likely to be 

pursued by the City or PVWMA. 

#44. Provide, to the extent available, information on recycled water and its potential for 

use as a water source in the service area of the urban water supplier. The preparation of 

the plan shall be coordinated with local water, wastewater, groundwater, and planning 

agencies that operate within the supplier's service area (10633). 

#45. (Describe) the wastewater collection and treatment systems in the supplier's service 

area, including a quantification of the amount of wastewater collected and treated and 

the methods of wastewater disposal (10633(a)). 

23

#46. (Describe) the quantity of treated wastewater that meets recycled water standards, 

is being discharged, and is otherwise available for use in a recycled water project 

(10633(b)). 

Wastewater Collection and Treatment 

Long before the Federal government dedicated the Monterey Bay as a National Marine Sanctuary, the 

Watsonville Wastewater Treatment Facility (WWTF) was serving as a first line of defense in protecting 

the Bay's precious water quality. The WWTF is located on the Pajaro River, southwest of Watsonville 

between Highway 1 and the Monterey Bay. It was first constructed in the 1920s, and has been through 

several expansions and upgrades. The WWTF has seen its mission grow from servicing a small 

agricultural community to treating wastewater for as many as 55,000 residents, commercial and 

industrial dischargers. The Plant collects and treats all of the wastewater (excluding storm water runoff) 

from a 21 square mile service area comprising users within the City of Watsonville, Freedom County 

Sanitary District, Pajaro County Sanitary District and Salsipuedes Sanitary District. More than 170 miles 

of pipeline are used to transport wastewater to the facility for treatment. 

The WWTF treats a daily average of 6-7 million gallons of wastewater in dry weather, and is permitted to 

treat up to 12 million gallons per day. The wastewater treatment process includes primary 

sedimentation, biological filtration, aeration, and secondary clarification. In 2010, tertiary treatment 

began. The recycled water is used for agricultural irrigation. All treated water undergoes extensive 

monitoring and testing to insure compliance with all State and Federal pollution prevention laws prior to 

being discharged to the Monterey Bay over a mile off shore. The Recycled Water Facility is designed and 

expected to treat 4,000 acre feet per year of wastewater to recycled water standards (Title 22). See 

Table 4.5. The amount of recycled water that is currently being produced and is available for use is 

outlined in Table 4.6. 

A new Watsonville Area Water Resources Center supports the larger Water Recycling Project, a joint 

effort of the City of Watsonville and the Pajaro Valley Water Management Agency, Table 4.4, to provide 

recycled water to farmers throughout the coastal areas of South Santa Cruz and North Monterey 

counties. By treating wastewater and making it available to the $400 million local agricultural industry, 

the Water Recycling Project protects groundwater that is being consumed more quickly than it is 

replenished, resulting in saltwater intrusion into coastal wells. In addition, the use of recycled water for 

irrigation reduces wastewater discharges into the Monterey Bay National Marine Sanctuary. 

Agency 

Watsonville Public Works 

Watsonville Wastewater Division 

Pajaro Valley Water Management Agency 

Watsonville Planning 

Table 4.4 – Participating Agencies 

Role in Plan Development 

Planning, design and grant application. 

Participates in project design and development 

Planning, design and grant application. 

CEQA review. 

Eighty-five percent of the Pajaro Valley’s water use directly supports its $400 million agricultural 

industry. However, the local aquifer is draining more quickly than it can be replenished, creating an 

24

imbalance that has resulted in saltwater intrusion into coastal wells that endangers agriculture in the 

region. The Water Recycling Project recharges the aquifer, providing 4,000 acre-feet per year of recycled 

water for irrigation. This accounts for over 20% of the 18,500 acre-feet per year of coastal pumping 

needed to halt seawater intrusion into the local aquifer. 


Recycled water - wastewater collection and treatment 

Type of wastewater 2005 2010 2015 2020 2025 2030 2035 

Wastewater collected & treated in service area 9,733 6,764 7,232 7,672 8,176 8,703 9,215 

Volume that meets recycled water standard 0 1,597 4,000 4,000 4,000 4,000 4,000 

Units: 



Recycled water - non-recycled wastewater disposal 

Method of disposal Treatment Level 2010 2015 2020 2025 2030 2035 

Ocean discharge Secondary 2,764 3,232 3,672 4,176 4,703 5,215 

Units: 


Total 2,764 3,232 3,672 4,176 4,703 5,215 

Recycled Water 

#47. (Describe) the recycled water currently being used in the supplier's service area, 

including, but not limited to, the type, place, and quantity of use (10633(c)). 

The amount of recycled water that is currently being used within the water service area is outlined in 

Table 4.7. 

#48. (Describe and quantify) the potential uses of recycled water, including, but not 

limited to, agricultural irrigation, landscape irrigation, wildlife habitat enhancement, 

wetlands, industrial reuse, groundwater recharge, indirect potable reuse, and other 

appropriate uses, and a determination with regard to the technical and economic 

feasibility of serving those uses (10633(d)). 

#49. (Describe) the projected use of recycled water within the supplier's service area at 

the end of 5, 10, 15, and 20 years, and a description of the actual use of recycled water 

in comparison to uses previously projected pursuant to this subdivision (10633(e)). 

In 2010, the City of Watsonville’s completed its upgrade of the wastewater treatment plant to include 

tertiary treatment. It recycles wastewater for crop irrigation in a joint project with the PVWMA. The 

treatment plant upgrade allows the City to produce up to 4,000 acre-feet per year of treated 

wastewater. This figure can be met based on the demand of the agricultural users ordering water in 

conjunction with PVWMA. 

25


Recycled water - potential future use 

User type Description Feasibility 1 2015 2020 2025 2030 2035 

Agricultural irrigation Tertiary treated waste water Very likely 4,000 4,000 4,000 4,000 4,000 

Total 4,000 4,000 4,000 4,000 4,000 

Units: 


1 Technical and economic feasibility. 


Recycled water — 2005 UWMP use projection compared to 2010 actual 

User type 2010 actual use 2005 projection for 2010 1 

Agricultural irrigation 505.1 4,000 

Landscape irrigation 2 0 0 

Commercial irrigation 3 0 0 

Golf course irrigation 0 0 

Wildlife habitat 0 0 

Wetlands 0 0 

Industrial reuse 0 0 

Groundwater recharge 0 0 

Seawater barrier 0 0 

Geothermal usage 0 0 

Indirect potable reuse 0 0 

Units: 


Total 505.1 4,000 

1 From the 2005 UWMP. There has been some modification of use types. Data from the 2005 UWMP can be left in the existing 

catagories or modified to the new catagories, at the discretion of the water supplier. 

2 

Includes parks, schools, cemeteries, churches, residential, or other public facilities) 

3 

Includes commercial building use such as landscaping, toilets, HVAC, etc) and commercial uses (car washes, laundries, nurseries, etc) 

#50. (Describe the) actions, including financial incentives, which may be taken to 

encourage the use of recycled water, and the projected results of these actions 

in terms of acre-feet of recycled water used per year (10633(f)). 

The City has teamed with the PVWMA to utilize up to 3.5 million gallons per day of tertiary treated 

recycled water that will become available in 2010. Because there is such a great need for additional 

water in the Pajaro Valley, the recycled water has already been allocated for agricultural irrigation and 

groundwater recharge projects. Additional uses for the recycled water will continue to be explored by 

the City and the PVWMA. 

26

#51. (Provide a) plan for optimizing the use of recycled water in the supplier's service 

area, including actions to facilitate the installation of dual distribution systems, to 

promote recirculating uses, to facilitate the increased use of treated wastewater that 

meets recycled water standards, and to overcome any obstacles to achieving that 

increased use (10633(g)). 

#30. (Describe) all water supply projects and water supply programs that may be 

undertaken by the urban water supplier to meet the total projected water use as 

established pursuant to subdivision (a) of Section 10635. The urban water supplier shall 

include a detailed description of expected future projects and programs, other than the 

demand management programs identified pursuant to paragraph (1) of subdivision (f), 

that the urban water supplier may implement to increase the amount of the water 

supply available to the urban water supplier in average, single-dry, and multiple-dry 

water years. The description shall identify specific projects and include a description of 

the increase in water supply that is expected to be available from each project. The 

description shall include an estimate with regard to the implementation timeline for 

each project or program (10631(h)). 

Proposed PVWMA Water Supply Projects 

$ Water Conservation - Implementation of the Water Conservation 2000 plan will provide up to 

approximately 5,000 acre-feet per year per year of reduced water demand through agricultural 

and domestic water conservation programs. 

$ Local Water Supplies - In addition to development of the Harkins Slough, Murphy Crossing, and 

College Lake projects, a project to utilize recycled water from the City of Watsonville 

Wastewater Treatment Plant has been developed. The flow through the Watsonville Plant that 

can be effectively utilized is approximately 4,000 acre-feet per year. 

The 2005 estimated cost of this series of projects is summarized in Table 4.9. 

Table 4.9 - PVWMA Water Supply Projects 

Project Element Average Yield (acre feet per Year) Capital Cost (Million Dollars) 

Conservation 5,000 $1 

Harkins Slough / Murphy Crossing 3,000 $10 

Water Recycling 4,000 $17 

Coastal Distribution System - $27 

Inland Distribution System - $16 

Total 12,000 $71 

27

Section 5 - Water Supply Reliability and Water Shortage Contingency Planning 

#5. An urban water supplier shall describe in the plan water management tools and 

options used by that entity that will maximize resources and minimize the need to import 

water from other regions (10620(f)). 

#23. For any water source that may not be available at a consistent level of use, given 

specific legal, environmental, water quality, or climatic factors, describe plans to 

supplement or replace that source with alternative sources or water demand 

management measures, to the extent practicable (10631(c)(2)). 

The City has incorporated a number of resource maximization tools into the management and operation 

of the water utility. The City’s main emphasis is in water conservation as detailed in Section 6 - Demand 

Management Measures of this report. City coordination with the Pajaro Valley Water Management 

Agency (PVWMA) on the basin management plan is aimed at reducing the current overdraft. This will 

help reduce the amount of water potentially required for basin management through importation from 

outside wholesalers or regions. 

The City does not import or buy water from any other sources. It relies solely on the groundwater in the 

Pajaro Valley Basin and the surface water from Corralitos Creek and Browns Creek in the Pajaro River 

watershed. 

Fourteen groundwater wells currently provide the City of Watsonville with an approximate average of 

6,850 acre-feet of water per year. All City water is treated at each well site and meets or exceeds State 

and Federal drinking water standards. 

The City enjoys pre-1914 water rights on Corralitos and Browns creeks, north of the City limits. The 

surface diversions are piped to the Corralitos Filter Plant (CFP) and are treated via slow sand filtration 

and disinfection. The CFP averages approximately 900 acre-feet of water per year, though it has a 

capacity of 2,400 acre-feet per year. Its operation is limited by the amount of surface water available in 

the Corralitos and Browns Creeks. At the Eureka Canyon Intake minimum bypass flows must be 

maintained by the City to allow for fish passage. The CFP operates seasonally, typically starting in late 

spring through the fall. During the rainy season the CFP is usually shut down due to the high turbidity of 

the intake water. Higher turbidity waters are not conducive to the efficiency of a slow sand filtration 

plant so a creek water turbidity of 10 NTU or less is desired. Only when these conditions are being met 

does the City collect and treat surface water for distribution. 

The City has operated without the CFP for extended periods of time. When it was severely damaged 

during the 1989 Loma Prieta Earthquake it was placed offline and did not resume full operation until 

1996. 

28

Water supply sources 1 

Supplier-produced 

groundwater 

Supplier-produced 

surface water 

Specific source name, 

if any 

Browns, Corralitos 

Creeks 


Factors resulting in inconsistency of supply 

Limitation 

quantification 

Legal Environmental Water quality Climatic 

none none none none none 

2,400 none none High turbidity 

Severe 

drought 

Additional 

information 

Units: 

1 From Table 4.1. 


#37. Actions to be undertaken by the urban water supplier to prepare for, and 

implement during, a catastrophic interruption of water supplies including, but not 

limited to, a regional power outage, an earthquake, or other disaster (10632(c)). 

The City has made a number of preparations to provide water during emergencies. Historically, the 

most common emergencies have been regional power outages and earthquakes. The City has learned 

from its experience of the 1989 Loma Prieta earthquake, and has taken many steps since then to 

prepare for similar situations. The City’s Water Supply and Distribution System Emergency Response Plan 

is included in Appendix C. 

The City water system is designed as a network, so that if one source of water or zone is damaged, 

water can be supplied from another area of the City. Additionally, each area within the service system is 

served by multiple wells, thus limiting dependence on a single supply source. Nearly all source water 

sites are equipped with emergency back-up generators and fuel tanks that will keep the system 

operational during emergencies for at least 1-3 days depending on the site; this time can be extended 

indefinitely by refilling fuel tanks. 

Possible Catastrophe 

Regional Power Outage 

Earthquake 

Table 5.2 – Emergency Response 

Summary of Actions 

Activate and monitor the generators and direct drive equipment for 

proper operation. 

Assess what system components are unavailable. Isolate and 

substitute an alternate source 

#38. Additional, mandatory prohibitions against specific water use practices during 

water shortages, including, but not limited to, prohibiting the use of potable water for 

street cleaning (10632(d)). 

#39. Consumption reduction methods in the most restrictive stages. Each urban water 

supplier may use any type of consumption reduction methods in its water shortage 

contingency analysis that would reduce water use, are appropriate for its area, and have 

29

the ability to achieve a water use reduction consistent with up to a 50 percent reduction 

in water supply (10632(e)). 

#40. Penalties or charges for excessive use, where applicable (10632(f)). 

#41. An analysis of the impacts of each of the actions and conditions described in 

subdivisions (a) to (f), inclusive, on the revenues and expenditures of the urban water 

supplier, and proposed measures to overcome those impacts, such as the development 

of reserves and rate adjustments (10632(g)). 

#42. A draft water shortage contingency resolution or ordinance (10632(h)). 

#43. A mechanism for determining actual reductions in water use pursuant to the urban 

water shortage contingency analysis 10632(i). 

Water Shortage Contingency Ordinance/Resolution 

The City adopted a “No-Waste” Ordinance in 1992. This ordinance is described in Demand Management 

Measure 13. The City has developed the following plan to deal with water shortages. 

Stages of Action 

The City has developed a five-stage rationing plan, Table 5.8, to invoke during declared water shortages. 

During such shortages, the City will use the State’s Method 3, Urban Water Use Targets for Hydrologic 

Regions, Central Coast value of 117 gallons per capita per day as its baseline usage. The plan is included 

in the draft Resolution Declaring a Water Supply Emergency and Establishing Water Use Reductions 

(Appendix D). The draft resolution has not been adopted or incorporated into an ordinance, but is 

ready for City Council action if necessary. It is important to note that the Supply and Demand 

Comparison Section of this report shows that a water shortage for the City of Watsonville is highly 

unlikely over the next 20 years due to the stable supply of groundwater and the City’s groundwater 

pumping and distribution capacity. 

Mandatory Prohibitions on Water Wasting 

The City of Watsonville "No Waste" Ordinance is included under Section 6 - Demand Management 

Measure M. It includes prohibitions on various wasteful water uses such as lawn watering during midday 

hours, excessive washing of sidewalks and driveways with potable water, and allowing plumbing 

leaks to go uncorrected. 

The following is a brief summary of the action levels. See Appendix D for more details. 

Level One 

Level One occurs when the differential between actual or predicted supply and the theoretic maximum 

day requires a reduction in consumption of zero to sixteen percent. Level one actions consist of those 

already taken by the City’s conservation efforts previously described in Demand Management Measures 

section of this report. The goal is to reduce residential consumption to 98 gallons per person per day. 

Level Two 

Level Two occurs when the differential between actual or predicted supply and the theoretic maximum 

day requires a reduction in consumption of 17 to 20 percent. 

Continuance of Level One actions. 

30

Provide messages in restaurants, restrooms, and other public places. 

Reduce residential consumption from 98 gallons per person per day to 94 gallons per person. 

Cease water used in training exercises. 

Expand irrigation conservation information. 

Level Three 

Level Three occurs when the differential between actual or predicted supply and the theoretic 

maximum day requires a reduction in consumption of 21 to 22 percent. 

Continuance of Level Two actions. 

Stop use of fountains. 

Prohibit water using air conditioners or coolers. 

Reduce residential consumption to 91 gallons per person per day. 

Mandatory promotion of low-flow fixtures. 

Mandatory school program. 

Mandatory irrigation program. 

Level Four 

Level Four occurs when the differential between actual or predicted supply and the theoretic maximum 

day requires a reduction in consumption of 23 to 26 percent. 

Continuance of Level Three action. 

Reduce residential consumption to 87 gallons per person per day. 

No refilling of pools from evaporation. 

No vehicle washing. 

Landscape watering every fourth day. 

Leak repair within one hour. 

Cease letters of water availability and collecting connection charges. 

Level Five 

Level Five occurs when the differential between actual or predicted supply and the theoretic maximum 

day requires a reduction in consumption of at least 27 percent. 

Continuance of Level Four actions. 

Water Rationing to 85 gallons per day per person. 

Landscape irrigation every fourth day but limited by Ration amount. 

No outdoor cleaning with water. 

No new water connections without a Building Permit and previously paid connection charges. 

Rationing established by owner returned affidavit of residents in the home. 

$10 per 100 cubic foot penalty for exceeding ration. 

Monitoring Program 

1. Water Level Monitoring (City Facilities) 

31

The Utilities Department is charged with the determination of the available supply and calculation of the 

Maximum Day Demand. The Department will monitor its wells and surface water sources to determine 

any losses in capacity that cannot be mitigated through rehabilitation of the facility. 

2. City will coordinate its water supply determination efforts with the PVWMA. 

Analysis of Revenue Impacts of Reduced Sales During Shortages 

The City of Watsonville has not conducted a formal study on the financial impacts of the water shortage 

contingency plan. Under a prolonged water shortage scenario, such as a drought, the City would 

anticipate expenses to increase as a result of actions to augment water supply and to reduce consumer 

use. The City has set up a Water Conservation Fund to cover the expenses associated with 

implementing all levels of the water shortage contingency plan. 

New development projects within the City Water Service Area are required to pay a groundwater impact 

fee to the City along with their water connection charges. The impact fee was established by calculating 

the cost of retrofit facilities necessary to mitigate the water demands of the new development. The City 

assigns the impact fees collected to the Water Conservation Fund, which also finances the water 

conservation programs and water use reduction projects. 

Reduction Measuring Mechanism 

Under normal water supply conditions, automated flow meters and a computer network record potable 

water production figures continuously. The Water Operations Manager tracks totals regularly. 

If it is determined that a Level 2 or greater rationing stage is in effect, the City may begin instituting 

mandatory prohibitions. Examples of these are listed in Table 5.3. During a Level 1 or 2 water shortage, 

weekly production figures will be reported to the Director of Public Works and Utilities. The Director 

will compare the weekly production to the target weekly production to verify that the reduction goal is 

being met. 

During a Level 3 through 5 water shortage, the procedure listed above will be followed, with the 

addition of a daily production report to the Director. During emergency shortages, production figures 

will be reported to the Director as often as requested. 

32


Water shortage contingency — mandatory prohibitions 

Examples of Prohibitions 

Stage When 

No Water Use In Fire Training Exercises Level 2 

No Water Fountains Level 3 

No Water Using Air Conditioners and Coolers Level 3 

No refilling pool for water lost due to evaporation Level 4 

No vehicle washing Level 4 

Cease letters of water availability or collection of new connection charges. Level 4 

Landscape Irrigation every fourth day only Level 4 

No outdoor cleaning with water Level 5 

No new connections without building permit and previously paid connection charge. Level 5 


Water shortage contingency — consumption reduction methods 

Consumption Stage When Projected Reduction % 

Messages in Restaurants, Restrooms and Other Public Places Level 2 Unknown 

Expand Irrigation Conservation Information Level 2 Unknown 

Mandatory Irrigation Conservation Program Level 3 Unknown 

Mandatory Vehicle Washing Ban Level 4 Unknown 

Landscape Watering Every Fourth Day Level 4 Unknown 

No Outdoor Cleaning With Water Level 5 Unknown 

Landscape Irrigation Every Fourth Day, and Limited to Ration Amount Level 5 Unknown 


Water shortage contingency — penalties and charges 

Penalties or Charges 

Stage When Penalty Takes Effect 

$10 per 100 cubic feet above 85 gpd/person Level 5 

Water Quality 

#52. The plan shall include information, to the extent practicable, relating to the quality 

of existing sources of water available to the supplier over the same five-year increments 

as described in subdivision (a) of Section 10631, and the manner in which water quality 

affects water management strategies and supply reliability (10634). 

Based on review of water quality monitoring data ranging from 1990 to the present, there are no 

significant changes in the City’s primary or secondary water quality standards. Overall groundwater 

quality is very good and water quality objectives are achieved in all wells. As such, the City does not 

believe that water quality will be an impact on the reliability of its water supplies. 

33

The City will strictly follow the requirements established by federal and state regulatory agencies and 

ensure that it continues to deliver high quality drinking water. 

Climatalogical Considerations 

#22. Describe the reliability of the water supply and vulnerability to seasonal or climatic 

shortage, to the extent practicable, and provide data for each of the following: (A) an 

average water year, (B) a single dry water year, (C) multiple dry water years 

(10631(c)(1)). 

Tables 5.6 and 5.7 show the effects of a single dry year and multiple dry weather years. Surface water 

comprises only about 10% of the total water supply. In the event of a drought or breakdown of the 

surface water filtration plant, such as occurred from 1989 through 1996, the City would depend more 

heavily on groundwater. City wells are not currently run at full capacity, and can supply additional water 

when needed. The maximum safe yield is the quantity of water that can be produced from the City 

groundwater system, based on the historical production capacity of the aquifer and the pumping 

capacity of the well equipment. Table 5.9 assumes no surface water is available in the dry water years, 

and that groundwater wells produce at the maximum safe yield. 

The City is able to supply its customers with adequate water through several years of drought. 

However, during drought conditions, the City would also make significant increases in its water 

conservation program. The City uses about 10% of the groundwater in the Pajaro Valley Basin, and 

would take all possible action to reduce the demand on the already over-drafted groundwater basin. 

The City will continue to work cooperatively with the PVWMA to find additional water supply options. 

Using the guidelines of DWR, the City will reference Table 5.6 when determining drought conditions: 

Average Year = 20.07” inches of rainfall. 

- Year 2004 is considered the reference average year as it is the median year for rainfall over a 30 

year period (from 1980 to 2010). 

Single Dry Year = 10.66” inches of rainfall. 

- Year 1976 is considered the reference single dry year as it is the lowest recorded year of rainfall 

since 1903 (http://www.wrcc.dri.edu/cgi-bin/cliMAIN.pl?ca9473). 

Multiple Dry Year period = 14.79” average inches of rainfall. 

- Years 1989-1992 is considered the reference multiple dry year period. This is the period 

generally considered to be the lowest average runoff for a consecutive multiple year period 

(three years or more) for a watershed since 1903. The two longest droughts in California history 

are considered to be 1987-1992 and 1923-1935. 

34


Basis of water year data 

Water year type 

Base year(s) 

Average Water Year 2004 

Single-Dry Water Year 1976 

Multiple-Dry Water Years 1989 - 1992 

During past dry water year events more water was used in previous dry water years than is typically 

used in a normal water year. See Table 5.7. This shift can be attributed to the success of water 

conservation measures and changes in water usage among other things. The City can provide reliable 

water supplies not only under normal conditions but also under both the single driest year and 

the multiple dry year events. 


Supply reliability — historic conditions 

Average / Normal Water Year Single dry water Multiple Dry Water Years 

2004 1976 1989 1990 1991 1992 

7,295 Unknown 7,761 7,325 6,691 6,860 

Percent of Average / Normal Year - 106.4% 101.4% 91.7% 94.0% 

Units: 


#35. Stages of action to be undertaken by the urban water supplier in response to water 

supply shortages, including up to a 50 percent reduction in water supply, and an outline 

of specific water supply conditions which are applicable to each stage (10632(a)). 


Water shortage contingency — rationing stages to address water supply shortages 

Stage No. Water Supply Conditions % Shortage 

Level 1 Demand exceeds supply by 0 - 16 % 0-16 




Level 5 Demand exceeds supply by > 27 - 50 % > 27 

1 

One of the stages of action must be designed to address a 50 percent reduction in water supply. 

#36. An estimate of the minimum water supply available during each of the next three 

water years based on the driest three-year historic sequence for the agency's water 

supply (10632(b)). 

35

Based on the multiple dry year scenario, Table 5.9 shows the water supply available. It is presumed that 

no surface water would be available. 


Supply reliability — historic conditions 

Water Supply Sources 1 Average / 

Normal Water 

Year Supply 2 Multiple Dry Water Supply 2 

Year 1 Year 2 Year 3 

Supplier-produced groundwater 21600 21600 21600 21600 

Supplier-produced surface water 2400 0 0 0 

Percent of normal year: 100.00% 90.0% 90.0% 90.0% 

Units: acre-feet per year 

1 

From Table 4.1 

2 See Table 5.6 for basis of water type years. 

#53. Every urban water supplier shall include, as part of its urban water management 

plan, an assessment of the reliability of its water service to its customers during normal, 

dry, and multiple dry water years. This water supply and demand assessment shall 

compare the total water supply sources available to the water supplier with the total 

projected water use over the next 20 years, in five-year increments, for a normal water 

year, a single dry water year, and multiple dry water years. The water service reliability 

assessment shall be based upon the information compiled pursuant to Section 10631, 

including available data from state, regional, or local agency population projections 

within the service area of the urban water supplier (10635(a)). 

Tables 5.10 - 5.12 illustrate the City’s water supply and demand projected through 2035 in times of an 

average year, single dry year, and multiple dry years. This projection is based on the availability of 

24,000 AFY during normal rainfall years from the City’s groundwater and surface water sources 

respectively. 


Supply and demand comparison — normal year 

2015 2020 2025 2030 2035 

Supply totals (from Table 4.1) 24,000 24,000 24,000 24,000 24,000 

Demand totals (From Table 3.10) 7,737 7,878 8,086 8,267 8,333 

Difference 16,263 16,122 15,914 15,733 15,667 

Difference as % of Supply 67.8% 67.2% 66.3% 65.6% 65.3% 

Difference as % of Demand 210.2% 204.6% 196.8% 190.3% 188.0% 

Units are in acre-feet per year. 

36


Supply and demand comparison — single dry year 

2015 2020 2025 2030 2035 

Supply totals 21,600 21,600 21,600 21,600 21,600 

Demand totals 1 7,737 7,878 8,086 8,267 8,333 

Difference 13,863 13,722 13,514 13,333 13,267 




1 The urban water target determined in this UWMP will be considered when developing the 2020 water demands included in this 

table. 

Multiple-dry year 

first year supply 


second year supply 


third year supply 


Supply and demand comparison — multiple dry-year events 

2015 2020 2025 2030 2035 

Supply totals 1,2 21,600 21,600 21,600 21,600 21,600 

Demand totals 2,3,4 7,737 7,878 8,086 8,267 8,333 

Difference 13,863 13,722 13,514 13,333 13,267 



Supply totals 1,2 21,600 21,600 21,600 21,600 21,600 

Demand totals 2,3,4 7,737 7,878 8,086 8,267 8,333 

Difference 13,863 13,722 13,514 13,333 13,267 



Supply totals 1,2 21,600 21,600 21,600 21,600 21,600 

Demand totals 2,3,4 7,737 7,878 8,086 8,267 8,333 

Difference 13,863 13,722 13,514 13,333 13,267 




1 Consider the same sources as in Table 4.1. If new sources of water are planned, add a column to the table and specify the 

source, timing, and amount of water. 

2 Provide in the text of the UWMP text that discusses how single-dry-year water supply volumes were determined.and amount of 

water. 

3 Consider the same demands as in Table 3.10. If new water demands are anticipated, add a column to the table and specify the 

source, timing, and amount of water. 

4 The urban water target determined in this UWMP will be considered when developing the 2020 water demands included in this 

table.and amount of water. 

37

Section 6 - Demand Management Measures 

#26. (Describe and provide a schedule of implementation for ) each water demand 

management measure that is currently being implemented, or scheduled for 

implementation, including the steps necessary to implement any proposed measures, 

including, but not limited to, all of the following: 

(A) water survey programs for single-family residential and multifamily residential 

customers; 

(B) residential plumbing retrofit; 

(C) system water audits, leak detection, and repair; 

(D) metering with commodity rates for all new connections and retrofit of existing 

connections; 

(E) large landscape conservation programs and incentives; 

(F) high-efficiency washing machine rebate programs; 

(G) public information programs; 

(H) school education programs; 

(I) conservation programs for commercial, industrial, and institutional accounts; 

(J) wholesale agency programs; 

(K) conservation pricing; 

(L) water conservation coordinator; 

(M) water waste prohibition; 

(N) residential ultra-lowflush toilet replacement programs (10631(f)(1) and (2). 

The City of Watsonville is committed to water conservation and water recycling programs, two 

important elements of any water resources strategy developed for the Pajaro River watershed. The City 

has made a good faith effort to promote such efforts in a variety of ways including; public education 

methods, the use of local print and electronic English and Spanish language media, articles in the City’s 

quarterly newsletter, and inserts in the City utility bills. Furthermore, the City evaluates its programs on 

an ongoing basis and will be proactive in implementing changes and/or additions to the following 

fourteen Demand Management Measures (DMMs). Each DMM is listed with their descriptions and 

level of performance. 

38

A. Water Survey Programs for Single Family Residential and Multi Family Residential Customers 

Since 1992, the City has offered water audits for residential customers who request them when 

confronted with unusually high water bills. No data is available regarding the number of water audits 

conducted prior to 2008. The City generally focuses its limited resources on more general education 

programs, since they have proven to more efficiently reach a larger number of people. In addition, the 

City offers free plumbing accessories to help reduce and conserve residential water usage. 

In 2006, the City began to conduct water use surveys of single family and multiple family residential 

customers in an attempt to identify the top water users in single family and multiple family residential 

units. Following a survey of exterior and indoor water uses, City staff may provide recommendations to 

the customers regarding ways to reduce water consumption. Specific survey activities may include, but 

are not limited to: 

Checking for leaks. 

Installation of low flow showerheads and faucet aerators. 

Identifying high use water fixtures and providing information on opportunities to replace such 

units with water conserving units. 

Evaluating exterior water uses. 

Providing information on low water use landscaping. 

Recommending adjustments to irrigation system controls. 

Providing site-specific recommendations for water efficient and pollution prevention 

landscaping practices. 

Table 6.A - Water Survey Programs including Toilet retrofits 

2006 2007 2008 2009 2010 

Number of Single and Multi 

Family Residential Surveys 

750 640 725 746 750 

Costs $75,000 $64,000 $72,500 $95,243 $100,343 

Projected Water Savings 

(Acre Feet/Year) * 30 25.6 29 28.9 29.7 

* 

Each survey is estimated to save 25 -35 gallons per day (0.028 - 0.040 AFY) 

In a measure to evaluate the effectiveness of DMM A City staff will conduct surveys on an ongoing basis 

and will periodically follow-up and analyze water use of customers who already have been surveyed. 

The City has $130,000 budgeted per year for DMMs A and B. 

39

B. Residential Plumbing Retrofit 

In 1992, the City started providing residents with free plumbing retrofit kits that included low-flow 

showerheads and hose nozzles. Kitchen and bathroom faucet aerators have since been made available 

as well. A bilingual brochure for this program (included in the Appendix E) is sent out regularly with the 

City utility bills. All items are offered to City residents and available to be picked up at the City's Utility 

Payment Center. The City also presents these items to its customers at various community events and 

fairs. At these events, the City also distributes water use surveys and conservation educational 

materials. On average, the City distributes 1,850 showerheads, 800 hose nozzles, 1,200 kitchen aerators 

and 1,000 bathroom aerators each year over the past five years. 

The City conducted a summer and fall door-to-door educational campaign in 2000 and 2004. Bilingual 

student interns visited over 4,000 homes and gave residents a presentation about the local groundwater 

overdraft situation, and ways they could conserve water. Residents received a low-flow showerhead, a 

hose nozzle, and water conservation brochures. The presentation also included information on 

recycling and stormwater pollution prevention. In recent years the City has focused on presentations to 

larger groups and the general public at community events. Because of the positive feedback from the 

community, the City hopes to re-launch its door-to-door effort in the future. 

Free Residential Retrofit Program 

In 2006, City Council approved the implementation of a free residential retrofit program. This program 

allows any homeowner in the City water system to sign up for a free water conservation inspection and 

retrofit by contacting the Customer Services Division. The inspection is conducted by an approved 

contractor, who will identify which fixtures need to be replaced. The contractor will arrive at the 

property with all necessary tools and fixtures, including ultra low flow toilets. 

Number of Residential 

Toilets 

Table 6.B - Toilet Replacement Program 

2006 2007 2008 2009 2010 

750 640 725 690 725 

Costs ($100 per toilet) $75,000 $64,000 $72,500 $69,000 $72,500 


AF/Y (0.04 AF/Unit) 

30.0 25.6 29.0 27.6 29.0 

Several studies suggest that water use savings resulting from miscellaneous interior retrofit fixtures can 

range between 25 and 65 gallons per day per housing unit. The studies also suggest that installation of 

retrofit fixtures in older single-family homes tend to produce more savings, while newer multi-family 

homes tend to produce fewer saving per housing unit. 

The City has $130,000 budgeted to cover water conservation devices and brochures per year for this 

program and DMM A. 

40

C. System Water Audits, Leak Detection, and Repair 

Description: The City routinely conducts distribution system water audits, leak detection, and repair. 

The City has permanently incorporated these programs into its utility operations. 

City staff reviews and compares the water production records and water metered records annually. 

Over the last 10 years the annual “unaccounted” for water losses average 6.55%. The City’s 

unaccounted-for water rate is below the ten percent limit set forth by the California Urban Water 

Conservation Council (CUWCC) in its Memorandum of Understanding Regarding Urban Water 

Conservation Best Management Practices (MOU) in 1992. 

Table 6.C.1 - Unaccounted for Water 

(in Million Gallons) 

Year Produced Metered out % Unaccounted 

2010 2428.8 2262.3 6.86 

2009 2528.8 2411.2 4.65 

2008 2869.2 2662.6 7.20 

2007 2812.4 2618.7 6.89 

2006 2578.9 2366.4 8.24 

2005 2467.8 2288.3 7.27 

2004 2542.8 2377.1 6.52 

2003 2487.8 2306.1 7.30 

2002 2503.4 2373.1 5.20 

2001 2481.4 2347.6 5.39 

The Field Services division of Public Works inspects and repairs all water service mains in the service 

area. Leaks on either service lines or main-lines are repaired in a timely manner. Following is a 

summary of their work over the last five years. 

Table 6.C.2 - Distribution lines Maintenance and Costs 

2006 2007 2008 2009 2010 

Miles Of Mains Maintained 172 176 177 177 177 

Number of Service 

Connection Breaks / Leaks 

Number of Main Breaks / 

Leaks 

85 59 55 69 57 

10 16 6 14 7 

Funds for this program are included in the annual operations and maintenance budget. 

41

D. Metering with Commodity Rates for all new Connections and Retrofit of Existing Connections 

The City is fully metered for all customer sectors, including separate meters for single-family and multifamily 

residential, commercial, large landscapes, and all institutional/governmental facilities. Metering 

is an effective conservation measure that directly associates cost with the amount of water used. It also 

provides the means for the City to identify and monitor high use customers. 

The City will continue to install and read meters on all new services. To help ensure that the water is 

metered correctly, the City has a proactive meter calibration and replacement program. Small meters (1 

inch or less) are replaced at 20 year intervals. Large meters (1½ inch and greater) are replaced at 15 

year intervals. Meter installation costs are part of new service connection fees. 

The City Utility Code requires irrigation water meters for all large landscape customers (greater than 

5,000 square feet), to separate outside from interior water use, and easily allow recycled water 

conversions. During water shortages, this will help develop equitable rationing allocations for nonresidential 

customers with both interior and landscape uses. 

The City has an inclining multi-block rate structure, with four tiers. See DMM K. 

Periodic reviews of customer water use are done to evaluate the effectiveness of this measure, 

comparing current water use per capita with historic data. Studies have shown that metered accounts 

may result in a 20% reduction in demand, compared to non-metered accounts. 

42

E. Large Landscape Conservation Programs and Incentives 

In 2000, the Watsonville Municipal Code was revised to guide new development within the City, and to 

shape water conservation programs. These programs have since been superseded by the California 

Water Efficient Landscape model ordinance (WELO) which the City enforces. The City intends to adopt 

its own WELO in 2011, which will be consistent with the State model. 

The following elements were incorporated into the Municipal Code: 

Sec. 6-3.433. Water Conservation in Development . (§ 1, Ord. 1088-00 C-M, eff. April 14, 2000) 

All development shall utilize water conservation, water recycling, and xeriscaping to the 

maximum extent possible. 

Sec. 6-3.434. Landscape Water Meters . (§ 1, Ord. 1088-00 C-M, eff. April 14, 2000) 

Separate landscape water meters shall be required in locations with a combined landscaped 

area greater than five thousand (5,000) square feet. 

Sec. 6-3.435. Landscape Irrigation Systems . (§ 1, Ord. 1088-00 C-M, eff. April 14, 2000) 

Irrigation systems shall be designed and maintained to avoid run-off, over-spray, low head 

drainage or other similar conditions where water flows to waste. 

Sec. 6-3.436. Turf Restrictions . (§ 1, Ord. 1088-00 C-M, eff. April 14, 2000) 

Turf shall not be used in median strips, parking islands, or in areas less than eight (8) feet wide, 

or on slopes that will result in excess irrigation water run-off. These limitations may be exempted if 

required for storm water erosion control by the Public Improvement Standards. 

Sec. 6-3.437. Water Use in Landscaped Areas . (§ 1, Ord. 1088-00 C-M, eff. April 14, 2000) 

Water use, in combined landscaped areas greater than five thousand (5,000) square feet, shall 

be monitored for comparison to the Maximum Applied Water Allowance (MAWA) 3 . Landscaped areas 

with water use lower than or equal to the MAWA shall be designated as water efficient. Landscaped 

areas with water use greater than MAWA will require an audit. The Director shall determine the 

appropriate mitigation measure to reduce water usage so as not to exceed the MAWA. Failure to 

implement such mitigation measure is a violation of this Code. 

The City has also adopted a Water smart gardening program and encourages all landscape professionals 

and residents to use its Online Gardening Tool (see Appendix E). This informational website allows one 

to view local water smart gardens for design ideas. Additionally, the City sponsors a Landscape Water 

3 MAWA. This is the upper limit of the annual allowed water for an established landscape area. The calculated 

number is based upon the size of the Landscape and evapotranspiration (ETo). 

43

Conservation (LWC) Program service tool. Commercial and residential water users have successfully 

implemented many of the water use efficiency tips to save water and money. 

The City is working on an irrigation control system that considers weather and ETo conditions to reduce 

water consumption for large landscaped areas such as parks and landscaped medians. To date, there 

are five weather based irrigation controllers at four City properties. These include the City Plaza (2), 

Crestview Park (1), City Hall (1), and Pinto Lake Park (1). 

The City has permanently incorporated DMM E into its ordinances. Public Works staff checks all new 

development and redevelopment projects for compliance with the State of California WELO. No data is 

available for landscape conservation activities conducted prior to 2005. In the last four years, 3 projects 

of 5000 square feet or more were reviewed by City staff and subsequently constructed. They were in 

compliance with the ordinance. Several other projects were reviewed but never built. 

A segment of the Public Works Engineering budget is set aside for DMM E. 

Water use at surveyed locations will be checked at the follow-up visits as part of the current LWC 

program and to assess the program’s efficacy. It is the program’s goal of continuing to evaluate the top 

10% of water users. 

44

F. High-efficiency Washing Machine Rebate Programs 

The City initiated a high-efficiency clothes washer rebate program in 2001 and provides a $100 rebate 

for customers who purchase a high efficiency washer. The City continues to promote this program in 

both newsprint and City newsletters (see Appendix E) and has provided rebates for more than 1500 high 

efficiency washers since the program’s inception. 

Actual Number of 

Washers 

Table 6.F - Washing Machine Program 

2006 2007 2008 2009 2010 

332 201 153 132 249 

Costs ($100 per washer) $33,200 $20,100 $15,300 $13,200 $24,900 

Estimated Water Savings 

AF/Y (0.0184 AF/Unit)* 

6.1 3.7 2.82 2.43 4.58 

*Based on 400 loads of laundry year, 38% savings on water use (40 gallons/load vs. 25 gallons/load) 

The annual budget is $30,000 for the rebate program. The City will allocate more funds when necessary. 

45

G. Public Information Programs 

The City has provided water conservation information to the public since 1995 in the following ways: 

- Bilingual water conservation tips and brochures are included in the City utility bills. Copies of 

the brochures are included in Appendix E. 

- The City regularly publishes newspaper advertisements promoting water conservation and 

promotes feature stories in the local newspapers about water conservation. The City also 

participates, along with all of the other local water purveyors, the PVWMA and the County of 

Santa Cruz, in an education project designed to raise awareness about important water issues. 

- City staff participates in local events including the annual Santa Cruz County Fair, the Strawberry 

Festival at Monterey Bay, Día de los Niños event, Cinco de Mayo celebration, and Fourth of July 

parade. Educational activities and information are provided for children and adults. 

- The City implemented a door-to-door educational campaign. See DMM B. 

- The City provides videos and books to the Watsonville Public Library on water conservation. 

- The City has co-funded the Green Gardener Certification Program at the Watsonville Adult 

School since 2008, which has graduated 90 landscape maintenance professionals that live 

and/or work in the Pajaro Valley. Irrigation related classes in the Green Gardener program 

include water-wise plant selection, soil and water relationships, efficient irrigation scheduling, 

and irrigation system troubleshooting. 

- The City collaborated with other local water agencies to develop the Watersmart Gardening 

website and CD. This interactive tool features low water-use plants and allows users to create 

customized plants list that are suitable for their particular sites. 

- The LWC program has developed several publications that are given to customers during site 

evaluations. These publications contain specific information about maintaining landscapes with 

resource efficient and pollution prevention practices along with local resources for efficient 

irrigation equipment and sustainable landscaping services. 

The City has made an effort to promote its web site as a reference tool and guide for all of its water 

conservation programs. The City’s Public Works and Utilities site (http://www.watsonvilleutilities.org) 

provides users with the most recent documents and links to the myriad of conservation programs 

available to them. 

The City will continue to provide information services and materials to inform the public about water 

conservation and other resource issues. The City will track the public’s commentary regarding the 

information provided to evaluate effectiveness. 

46

Table 6.G - Public Information Programs 

2006 2007 2008 2009 2010 

Newspaper Ads 4 4 4 4 4 

Bill Inserts 1 1 1 1 1 

Special Events 5 5 5 5 5 

Website continuous continuous continuous continuous continuous 

Presentations To 

Civic Organizations 

2 2 2 2 2 

City Newsletter 1 1 1 1 1 

Costs $13,000 $13,000 $13,000 $13,000 $13,000 

The annual budget for these programs is $15,000 (from the Water Conservation Fund) for staff and 

materials. 

47

H. School Education Programs 

The City employs one full time Environmental Education Coordinator who provides classroom 

presentations and field trips to twenty five schools in the City of Watsonville water service area. Water 

curriculum and videos are also provided at each school site. On average, more than 3,000 students, 

teachers, and parents participate in the program each year. The grade-leveled program has been 

designed to increase water conservation awareness and behavior in Watsonville students and their 

families. The program is structured as follows: 

Fourth graders visit the new Wetlands of Watsonville (WOW) Nature Center and trail system. 

The WOW program provides the public with strategies for watershed protection. 

Fifth graders learn about water conservation when they visit the surface water intake, Corralitos 

slow sand filter plant, and a groundwater well. Models of a water filter and groundwater well 

are created. Students learn specific strategies to conserve water and are encouraged to teach 

their families to save water at home. A re-usable water bottle is provided to better appreciate 

that City’s tap water meets or exceeds all federal and state guidelines for drinking water. 

Sixth graders experience a field trip that focuses on wastewater recycling and pollution 

prevention. Students learn how they can limit watershed pollution in their neighborhood and 

view firsthand how the City protects the watershed through treatment of wastewater. Students 

and parents witness how the City conserves water on a larger scale through the recycling of 

wastewater. 

Our Water Works in Santa Cruz County: An Activity Guide about our Fresh Water Resources is 

provided free of charge for every fifth and sixth grade student in the City’s water service area. 

The booklet is tied with California education content standards and is in large demand from 

public and private schools 

The City will continue to implement DMM H at the levels described. The City will continue to track 

attendance as well as survey the institutions and educators to better understand how the programs, 

materials, and activities have served them. 

The City has not developed a method to quantify the savings of DMM H but believes that this program is 

in the public’s interest. 

Table 6.H - School Education Programs 

Number of Participating Students per Academic Year 

2005-2006 2006-07 2007-08 2008-09 2009-10 

4 th – 6 th 2,844 2,485 2,794 2,592 2,677 

Parents / 

Teachers 

344 595 399 324 345 

The annual budget is $98,500 for staff and materials. 

48

I. Conservation Programs for Commercial, Industrial, and Institutional Accounts 

The City’s Source Control Program (part of the Wastewater Enterprise) works with commercial and 

industrial users to reduce water use. Annual inspections of the larger industrial facilities (wastewater 

flows > 25,000 GPD) focus on pollution prevention and water conservation. Water use by industrial and 

large commercial users is measured monthly. 

The City also inspects some of its institutional accounts (i.e. City parks) using the following two steps: 

1. Find projected savings: Compare pre-audit Commercial and Parks irrigation accounts to 

MAWA/budgets. 

2. Find actual savings: Compare pre- and post- audit Commercial and City Parks irrigation accounts. 

Number of Commercial 

Surveys 

Number of Institutional 

(City parks) Surveys 

Table 6.I – Commercial Water Survey Programs 

2008 2009 2010 

- 14 29 

4 9 5 

Costs n/a $26,243 $27,843 

The chart below represents a 29% decrease in water use from 2007 to 2010 at thirteen of the City’s 

parks properties, a total water savings realization equivalent to over 13.5 AFY. 

City of Watsonville Parks water use 2007-2010 

(AFY) 

60.00 

50.00 

40.00 

30.00 

20.00 

10.00 

0.00 

2007 2008 2009 2010 

Water use (AFY) 46.16 49.72 41.45 32.63 

The annual budget for this program is $28,000 for staff and consultants. 

49

J. Wholesale Agency Programs 

As the City of Watsonville is not a wholesaler of water, DMM J is not applicable to the City of 

Watsonville. 

50

K. Conservation Pricing 

Since 1995, the City has had an inclining multi-block water rate structure. A billing unit is one hundred 

cubic feet (748 gallons), commonly abbreviated CCF. The City has implemented a tiered rate structure, 

most recently revised in October 2010. The City will continue to evaluate the effectiveness of rate 

blocks and how to increase the financial incentives to conserve water. 

Table 6.K – Water Rates 

Inside City 

Outside City 

Meter Size Oct-10 Meter Size Oct-10 

5/8 & 3/4" $ 9.13 5/8 & 3/4" $ 12.96 

1" $ 13.53 1" $ 18.99 

1-1/2" $ 24.52 1-1/2" $ 29.03 

2" $ 37.71 2" $ 41.14 

3" $ 72.87 3" $ 85.98 

4" $ 112.43 4" $ 107.48 

6" $ 182.27 6" $ 210.17 

8" $ 411.93 8" $ 471.72 

10" $ 507.42 10" $ 580.35 

Additional Connections 

Each $ 2.67 $ 4.23 

Non-residential Rate 

Per Ccf $ 1.58 $ 2.10 

Residential-Single & Multi Family Rate 

Tier 1 (1-8 Units) $ 1.47 Tier 1 (1-8 Units) $ 1.96 



Tier 4 (Over 15 Units) $ 4.01 Tier 4 (Over 15 Units) $ 5.39 

Irrigation 


Tier 2 (Over 8 Units) $ 2.09 Tier 2 (Over 8 Units) $ 2.75 

The proposed annual budget is included in the Administrative Services personnel budget. 

Annually, City staff can monitor the number of customers who show excessive water use. 

The goal of DMM K is to decrease the customer’s water use through price incentives. 

51

L. Water Conservation Coordinator 

The City employs an Environmental Projects Manager in charge of water conservation efforts. This 

position receives additional support from various groups within the Utilities Department including 

Water Operations, Customer Service (metering) and Engineering. Tasks include oversight and 

implementation of the conservation programs, program reporting, and communication of water 

conservation issues within the City organization and to the public. 

The City assigns water conservation duties to several staff. The Environmental Project Manager serves 

as the water conservation coordinator, and works with other City staff to implement the listed DMMs. 

Another staff person (30% time) is assigned to the school water conservation education program, DMM 

H. 

Number of 

Full-Time 

Positions 

Number of 

Part-Time 

Positions 

Table 6.L - Water Conservation Coordinator 

2006 2007 2008 2009 2010 

0 0 1 1 1 

0.5 0.5 0.3 0.3 0.3 

Costs $35,477 $37,344 $82,343 $82,343 $82,343 

The City will continue to utilize existing Public Works staff to support this DMM. The funds for this role 

are included in Public Works personnel budget for staff time. 

52

M. Water Waste Prohibition 

The prohibitions upon water waste and use of non-essential water are authorized by Ordinance 

884-92(CM) enacted February 11, 1992. The ordinance, included below, has been permanently 

incorporated into the City Utility Code. The Utility Code is used to guide new development within the 

City, and to shape water conservation programs. The City focuses its efforts on public education 

programs to promote water conservation activities, but will enforce the code and issue citations when 

necessary. 

Reports of water wasting in the City service area are handled by the Customer Services Division. 

Customer Service Technicians are dispatched to respond to these notices. The most common reports 

are of people not using shut off nozzles when washing cars, or for irrigation systems that are poorly 

adjusted. City staff provides technical assistance to customers to help address water wasting. If 

measures are not corrected, notices of violation are issued and a timeline to correct the problem given. 

Fines are implemented for chronic offenders. 

Sec. 6-3.432. Wasting of Water. 

It is unlawful for any person to use water for any of the following: 

I. Watering of grass, lawn, ground cover, shrubbery, open ground, crops, trees, including 

agricultural irrigation, or an indiscriminate running of water or washing with water in a manner 

or to an extent which allows water to run to waste. 

II. Permit the loss of water through leaks, breaks, or malfunction within the customer’s plumbing. 

III. The use of a hose without a quick-acting positive shut-off nozzle. 

IV. Maintenance or operation of any new ornamental fountain which does not re-circulate onehundred 

percent (100%) of water used. 

V. Operation of a new car wash that does not use the best available water conservation 

technology. 

VI. Irrigation of turf, lawns, gardens or ornamental landscaping between 9:00 a.m. and 5:00 p.m. 

except by drip irrigation or hand watering with a quick-acting shut-off nozzle. 

Sec. 6-3.435. Landscape Irrigation Systems . 

Irrigation systems shall be designed and maintained to avoid run-off, over-spray, low head 

drainage or other similar conditions where water flows to waste. 

Sec. 6-3.437. Water Use in Landscaped Areas . 

Water use, in combined landscaped areas greater than five thousand (5,000) square feet, shall 

be monitored for comparison to the MAWA. Landscaped areas with water use lower than or equal to 

the MAWA shall be designated as water efficient. Landscaped areas with water use greater than MAWA 

will require an audit. The Director shall determine the appropriate mitigation measure to reduce water 

usage so as not to exceed the MAWA. Failure to implement such mitigation measure is a violation of this 

Code. 

Budget and enforcement costs are a part of the Public Works Utility Department’s overhead. 

53

N. Residential Ultra-lowflush Toilet Replacement Programs 

The City purchases the toilets (two styles) and contracts with an outside contractor, Central Coast 

Energy Services, to install them. Toilets marked 1.6 gallons per flush are not eligible for free 

replacement. This program has no income restrictions. 

Since 1992, the City has offered a rebate of $100 per high flow toilet for replacement with a high 

efficiency toilet. This program is available to both residential and commercial customers. The City 

promotes this program regularly through newspaper advertising and mailing a brochure with the City 

utility bill, included in Appendix E. Over 3300 low-flow toilets have been installed through this program. 

Number of Residential 

Toilets 

Table 6.N - Toilet Replacement Program 

2006 2007 2008 2009 2010 

223 170 114 122 204 

Costs ($100 per toilet) $22,300 $17,000 $11,400 $12,200 $20,400 


AF/Y (0.04 AF/Unit) 

8.92 6.8 4.56 4.88 8.16 

The annual budget is $30,000. 

54

Introduction 

Section 7 - Climate Change 

The City of Watsonville is located within the Pajaro River Watershed Integrated Regional Water 

Management Plan (Pajaro IRWMP) boundaries as depicted in Figure 7.1. The Pajaro IRWMP Regional 

Water Management Group was awarded a one million dollar grant to update the IRWMP, conduct 

studies to fill data gaps, and enhance stakeholder outreach. 

Figure 7.1. Pajaro River Watershed IRWMP Boundaries 

Watsonville 

55

The IRWMP update must address both adaptation to the effects of climate change and mitigation of 

Green House Gas (GHG) emissions for the region. The IRWMP must include the following items: 

A discussion of the potential effects of climate change on the IRWM region, including 

an evaluation of the IRWM region’s vulnerabilities to the effects of climate change 

and potential adaptation responses to those vulnerabilities; and 

A process that discloses and considers GHG emissions when choosing between 

project alternatives. 

The updated Pajaro IRWMP is scheduled to be completed in 2013 at which time the climate change 

analysis for the region can be incorporated into the City of Watsonville UWMP. However, there are 

opportunities for the City to develop a flexible water resources planning strategy in advance of the 

IRWMP regional climate change strategy. This section describes the City of Watsonville planning 

approach for a “no-regrets” strategy. 

Background 

Regional water supplies are expected to decline due to climate change. The City residents depend on an 

already overdrafted groundwater basin and could be vulnerable to changes that exacerbate those 

overdraft conditions. While the actual conditions of future climate change on the City are uncertain and 

vary based on the global climate models used, it is generally accepted that impacts have already 

occurred in the region and that these impacts are very likely to intensify in the future. 

Most models predict drier conditions, on average, along the Central Coast of California. Future climate 

change evaluations for the region will include an assessment of the following environmental conditions: 

Temperature 

Precipitation 

Sea Level 

Vegetation 

Wildfires 

Storm Events 

Each of these factors can affect the City’s water supply conditions. Most critically, increased 

temperatures can lead to increased water use for both agricultural and urban water users, decreased 

precipitation can reduce groundwater infiltration, and increased sea levels can exacerbate seawater 

intrusion. 

Exactly predicting these future conditions is not necessary for implementing responsible water 

management strategies that reduce vulnerabilities for the residents of the City. Planning for more 

frequent and/or severe drought is considered a “no-regrets” strategy. The region is already at risk from 

extended drought, seawater intrusion into coastal wells, and over pumping of groundwater. More 

frequent or severe drought conditions and potential increased water use would exacerbate these 

56

conditions. Therefore, a “no-regrets” water resources planning strategy, regardless of climate change or 

uncertain climate change projections, would reduce vulnerabilities for the City residents. 

The purpose of this strategy is to develop approaches for the City to reduce the potential impacts to the 

community resulting from climate change. As described in the 2010 UWMP Guidebook, approaches for 

responding to climate change generally take two forms: mitigation and adaptation. Mitigation is taking 

steps to reduce the contribution to the causes of climate change by reducing GHG emissions. Adaptation 

is the process of responding to the effects of climate change by modifying systems and behaviors to 

function in a warmer environment. Adaptation is considered a short term strategy because it does 

nothing to minimize the cause of climate change. However, an approach that implements both 

adaptation and mitigation can most significantly reduce the affects of climate change on the residents of 

the City of Watsonville. For example, the City is developing a surface water treatment project that 

maximizes the yield from the existing Corralitos Filter Plant (adaptation) and utilizes renewable solar 

energy to operate the facility (mitigation). 

Additionally, the City can integrate these climate change strategies with other City objectives. For 

example, improving the efficiency of the Corralitos Filter Plant allows the City to preserve flow in the 

creek when most needed for the endangered fisheries and the renewable energy source reduces facility 

operation costs, which translate to reduced rates for City residents. 

By implementing both mitigation and adaptation responses, the City of Watsonville can reduce the 

vulnerability of the city residents to droughts, but also contribute to the groundwater sustainability and 

agricultural preservation for the region. 

This next section provides a summary of the mitigation and adaptation strategies that are or can be 

implemented by the City of Watsonville to reduce vulnerabilities to its residents. These strategies are a 

critical first step in what will need to be an ongoing process as the region progresses in its understanding 

of climate change, its impact on the region, and opportunities for responding to these changes and 

impacts. 

Mitigation Measures 

Increasing the amount of non-polluting, renewable energy is the primary opportunity for the City to 

implement a climate change mitigation measure. Renewable energy reduces GHG emissions and is 

important for mitigating climate change and reducing its long-term severity. 

Utilizing Federal New Clean Renewable Energy Bond funds (NCREB), the City is installing solar panel 

arrays on four city buildings, Table 7.1. Bond payments will be paid through the Water Enterprise Fund. 

Installation is expected to begin in 2011. 

57

Table 7.1 - Solar Projects 

KWH generated DC KWH 

City Hall 148,848 106.425 

Municipal Services Center 177,372 128.945 

Materials Recovery Facility 49,539 36.08 

Water Resources Center 170,130 122.59 

total 545,889 394.04 

Projected annual savings in kg of CO 2 610,667 

The City is incorporating the use of renewable solar electricity into its Corralitos water supply project 

designs. This new Corralitos Creek Water Supply and Fisheries Enhancement Project will host solar 

panels providing approximately 65% of the electricity needed to operate, estimated at 620,000 kilowatthours 

(kWh). The solar electricity will be used entirely on-site. The new facility, by design, offsets 

groundwater pumping with use of a surface water membrane filtration plant, reducing power needs by 

40%. This efficiency improvement is an important design step for solar electricity. First, the project 

reduces total energy use and then replaces a portion of the future energy usage with renewable energy. 

The City will procure solar electricity by entering into a Power Purchase Agreement (PPA). A PPA with a 

third-party provider is preferable to direct purchase and ownership of the solar photovoltaic (PV) system 

because it does not require a large capital outlay. A PPA does, however, give the City the option of 

ownership through buyout at the end of the contract period. A PPA further mitigates ownership risk to 

the City by eliminating performance degradation risks, design and construction contingencies, and 

ongoing maintenance. 

Overview of Power Purchase Agreement 

The selected PPA contractor will provide all capital (photovoltaic equipment, installation) and O&M 

related activities (power monitoring and equipment maintenance), while the City will provide the 

necessary land and roof access at the treatment plant site. The parties will negotiate a price at which the 

City would purchase the power back from the solar operator. The City plans to cover the existing 

filter/sedimentation basin and the new membrane building with a solar photovoltaic system. The 

combined 37,700 square feet will provide enough space to support a photovoltaic system of 

approximately 322 kW producing approximately 400,000 kWhs, as described below. Future expansion of 

the photovoltaic system is planned as the plant increases in capacity. 

A typical PPA lasts for 10 to 20 years. The City can either renew the PPA or “buy out” the remaining 

value of the system, thereby taking ownership of the equipment and ending the contract arrangement 

with the provider. The PPA provider will install the PV system with no capital cost to the City. The 

provider will coordinate financing for the project and will design, construct, operate and maintain the 

system for the duration of the agreement. The energy from the project will be sold to the City at a fixed 

58

price. The annual rates may be escalated, depending on contract negotiations; however, the escalation 

must be lower than current utility escalation rates to maximize savings. 

The PPA provider will be assigned all rebates and potential tax incentives associated with the system. 

Under the California Solar Initiative incentive program, the PPA provider would retain ownership of any 

Renewable Energy Credits (RECs). The combination of these financial incentives results in a favorable 

price of solar electricity in the PPA. 

Expected Environmental Benefits 

By producing 400,000 kWh per year, the PV system will offset approximately 116 metric tons of carbon 

dioxide per year, equivalent to taking 22 cars off the road for one year. This emissions reduction means 

that for every megawatt-hour the PV system generates, approximately 641 pounds of CO2 are not 

generated from electricity produced and delivered into the utility grid. This factor is the average 

emissions across PG&E’s service territory; while PG&E does purchase renewable energy, this factor 

incorporates emissions from all of PG&E’s owned and purchased resources. The system will also avoid 

3.2 pounds of nitrous oxide emissions annually. 

In addition to accounting for GHG emissions reduced by the PV system, the City may inventory GHG 

emissions sources, reductions achieved, and future opportunities throughout the project. The City will 

use The Climate Registry to track emissions and performance over time. 

The City will continue to pursue opportunities to incorporate the use of renewable energy into its water 

resource projects and other City facilities. 

In addition to the development of renewable energy, the City can support the reduction of GHG 

emissions by offering opportunities for alternative transportation. The City has developed bike and 

pedestrian trails and the Wetlands Trails Master Plan calls for a system of paved pedestrian footpaths 

that will incorporate bicycle use and access for disabled users. The trail system will provide a wide range 

of recreational opportunities as well as promote alternative modes of transportation in residential and 

commercial areas. 

Adaptation Measures 

Adaptation is the process of responding to the effects of climate change by modifying systems and 

behaviors to function in a warmer environment. The most significant adaptive measure the City has 

implemented is the development of the Watsonville Water Recycling Treatment Facility. The recycling 

facility can generate 4,000 acre feet per year of a sustainable, drought tolerant, irrigation supply. The 

supply is delivered to agricultural users and will offset an equivalent amount of groundwater 

extractions. Although not used for potable use, the reduction in groundwater extractions directly 

benefits the City residents who rely upon this overdrafted basin for over 90% of their water use. 

The recycling facility was developed in partnership with the Pajaro Valley Water Management Agency 

(PVWMA), the agency responsible for management of the Pajaro Valley groundwater basin. The City will 

continue to work collaboratively with PVWMA to address water supply resources and develop water 

supply opportunities in the region. Potential joint strategies could include the development of projects, 

59

programs and policies to preserve watersheds and implementation of groundwater management 

ordinances to assure a long‐term, sustainable groundwater supply. 

Summary 

Climate change may introduce additional water supply challenges for the City of Watsonville and the 

Pajaro Valley. However, the City is already implementing adaptation and mitigation measures and 

intends to continue this “no-regrets” strategy as more climate change information and strategies are 

developed for the region. The City is committed to working with other agencies and organizations to: 

• Better understand the impacts of climate change; 

• Develop a coordinated strategy for mitigating and adapting to climate change; 

• Reduce the vulnerabilities to the City residents; and 

• Work to protect the vital resources and agricultural economy of the Pajaro Valley. 

60

CITY COUNCIL/REDEV# 6.2 (a) 


Strategic Plan 2011-2013


Executive Summary………………………………………………….. 3 

Action Plan…………………………………………………………… 5 

Current Projects & Initiatives………………………………………… 9 

Department Proposed New Initiatives and City Council Priorities……. 23 

Appendix……………………………………………………………….. 28 

1

EXECUTIVE SUMMARY 2011 - 2013 

Background. Since 1994, the Watsonville City Council has held several goal-setting Study Sessions. 

These events have allowed the City Council to identify pressing issues in the community, and 

translate these into concrete goals. The Council then has the ability to assist staff in the 

prioritization of existing and proposed programs and projects, such that the implementation of the 

goals becomes a reality in the adoption of the City budget. 

Strategic Planning Process. Strategic Planning is an ongoing process that takes place throughout the 

year, culminating in a goal-setting study session. On March 8, 2011, members of the City Council and 

City Management Staff met in an open session to discuss the community’s needs and identify the 

goals that would provide direction for the next two years. Following the goal-setting process, the 

City Council met on April 26, 2011 and on May 17, 2011 in order to identify and rank future programs 

and projects that will implement these goals. 

Project Ranking Process. City staff and Council Members prepare a list of “Proposed New 

Initiatives”. The list includes a variety of programs and projects that could be implemented in the 

next two years. Once the list is completed each Council Member is asked to rank the projects. 

The Council may also use some of their ranking tools to rank the importance of Current Initiatives or 

Projects. Although these projects are already underway and funded, this is done in order to show 

which current projects are of critical importance to the Council. This does not affect the status of the 

current projects. 

Efficiencies. City Council requested that each department develop a list of potential efficiencies and 

identify any potential new revenue. The lists were developed and City staff and the City Council will 

work throughout 2011 addressing the viability of the efficiencies, the cost/benefit to the community 

and the value of implementation. 

Identifying Potential New Revenue. Council and staff developed a list of potential new revenue 

ideas and increased fees. The Council also wishes to revisit the current subsidy level of some of the 

fees, in order to determine if the City is able to recover a higher percentage of the actual cost to 

deliver the services. 

3

Council Goals. At their March 8 goal-setting study session the City Council reviewed several of 

the main issues affecting the City of Watsonville and reached consensus on four goals and one 

area of interest. These goals will be implemented and prioritized through a variety of programs 

and initiatives. The goals identified during this session were: 

 

 

 

 

Sustainable Economic Development 

Safe and Healthy Community 

City Image 

Community Resources 

o Educational Attainment 

The Goals 

Sustainable Economic Development. The Watsonville City Council has always emphasized the 

importance of new job creation and economic development. With special focus on the 

redevelopment of the downtown, as well as job creation and job training, several projects will 

further this goal. An important objective is to create development potential for commercial 

and industrial users that would bring new jobs to the community. The primary project that will 

further this goal is the implementation of the Manabe/Ow Specific Plan. 

Safe and Healthy Community. The Watsonville City Council is interested in enhancing and 

improving the safe environment currently found in Watsonville. In order to achieve this goal, 

the City is including crime prevention, suppression and law enforcement together with positive 

activities and alternative approaches, such as the Community Post Incident Team and Contigo 

programs. 

City Image. Potentially a tool for economic development, as well as a vehicle for community 

pride, the City Council wishes to implement programs and initiatives that will reflect positively 

on the community’s image. The City has completed several activities, including a downtown 

mural program, sidewalk cleaning and façade improvement projects. 

Community Resources. The continued improvement of the community’s infrastructure is a 

high priority. Beyond streets and utilities, infrastructure also includes quality of life projects 

such as flood protection with an improved levy system, increased forestation, optimal fire 

prevention and suppression activities, etc. Measures to improve traffic flow are also included 

under this goal. 

Educational Attainment. In conjunction with the Pájaro Valley Unified School District, 

Cabrillo College, UCSC and many other agencies and programs, the City of Watsonville is 

working toward improved educational attainment and job skill development for the City’s 

workforce. This workforce is a key component to the sustainability of all economic 

development efforts, as well as the quality of life for members of the community. 

4

The Action Plan 

Action Plan. The Action Plan identifies the City Council’s goals and inventories the programs 

and projects selected to implement and further the goals. These programs and projects are 

being pursued in response to the Council’s direction and they form a part of the daily 

operations of the City. The focus on these items enhances the ongoing work and services of the 

various City departments. 

Action Plan Implementation 2011-2013 

Goal I: Sustainable Economic Development 

Objective 1: Downtown Revitalization 

1. Continuation Of Downtown Streetscape Improvement Plan 

2. Continued Implementation Of Stoesser Alley Master Plan 

3. Storefront (Façade) Improvement Program 

Objective 2: Job Creation & Workforce Skill Development 

4. Business Outreach Program 

5. Business Recruitment Program 

6. Develop Data & Resources For Industrial Property/Business 

7. Extend Timeline For Enterprise Zone 

8. Green Jobs Incubator 

9. Guaranteed Loan Program For Businesses 

10. Manabe-Ow Specific Plan Implementation 

Objective 3: Better Use of Underutilized Land & Other Development Opportunities for Industrial and 

Commercial Development 

11. Manabe Ow Wetlands Restoration – Final Phase 

12. Develop Data & Resources for Industrial Property/Business 

13. Update of General Plan VISTA 2030 

14. Revitalize Industrial Core 

5

Goal II: Community Resources 

Objective 1: Community Infrastructure 

1. 36 Airport Road – Mixed Market Rate And Affordable Housing Project 

2. AB 32 Greenhouse Gas Reductions 

3. Airport Capital Improvements (Design & Construct) 

4. Animal Services Authority Of SC County 

5. Armory Acquisition 

6. Assist In Creation Or Preservation Of Affordable Housing 

7. Broadband Project 

8. Central Coast Broadband Consortium 

9. Channel 70 Programming 

10. City Disaster Response Plan 

11. City Manager E-Newsletter Wingspan 

12. City Staff Training For Disaster Response 

13. City Trails Master Plan 

14. City-Wide Newsletter 

15. Code Enforcement 

16. Development & Maintenance Of City Website 

17. Emergency Preparedness 

18. General Plan And EIR Update (Vista 2030) 

19. General Plan Implementation (Title 14: Zoning Revisions) 

20. Historic Ordinance Revisions 

21. Implementation Of Foreclosure Ordinance 

22. Large Scale Solar Projects At Landfill And Airport 


24. Marketing/Underwriting For Potential Re-Sale Of Affordable Housing 

25. Measure U Implementation 

26. Neighborhood Development Program At Carey/Davis 

27. Neighborhood District Meetings 

28. Pájaro River Flood Control 

29. Pájaro River Trails Project 

30. Pinto Lake 319h Grant 

31. Pinto Lake C&A Grant 

32. Pinto Lake Invasive Species Monitoring 

33. Pinto Lake Toxin Testing 

34. Redistricting 

35. Roof Top Solar Power Projects 

36. Sale Of City Or Agency Property For Use As Affordable Housing 

37. Slough Trails Master Plan Implementation 

38. Social Service Grants 

39. Solar Power Project 

40. Targeted Neighborhood Marketing For Housing Rehabilitation 

41. Urban Greening Planning Grant 

42. Watsonville Slough Restoration 

43. Wireless Local Area Network 

6

Objective 2: Streets & Traffic 

44. CEC Funded Led Street Light Replacement 

45. Freedom & Main Roundabout 

46. Freedom Blvd – Lincoln To Davis - Design 

47. Freedom Blvd. – High To Lincoln- Reconstruction 

48. Freedom Blvd. – Utility Underground 

49. Highway 1/ Harkins Slough Road Interchange 

50. Neighborhood Traffic Program 

51. Ohlone/Beach Street Signal 

52. Pavement Maintenance Project 

53. PG&E 0% Loan Led Lighting Retrofit 

54. Stoesser Promenade Implementation 

55. Traffic Calming For Improved Traffic Flow 

Objective 3: Utilities 

56. Corralitos Water Filter Plant Upgrade 

57. Expansion Of Commercial Recycling 

58. Fine Bubble Diffuser For Energy Savings 

59. Hames Reservoir Improvements 

60. Implement New State Recycling Mandates 

61. Implement Phase Ii Storm Water Program 

62. Integrated Waste Task Force 

63. Landfill GHG Monitoring & Reporting 

64. Landscape Water Audits 

65. Materials Recovery Facility Modifications 

66. Meter Reading Upgrade 

67. PDO Facility Improvements 

68. Recycling Audits 

69. SCADA System Upgrade 

70. TMDL Program For Drainage To Surface Water 

71. Toilet Retrofit Program 

72. Urban Water Management Plan 

73. Water Fluoridation Implementation 

74. Water Main Replacements 

75. Watershed Sanitary Survey 

76. Zone 2 Reservoir 


2. Home Improvement Grants 

3. Implement Public Art Program 




7. Volunteer Coordination 


Goal III: City Image 

7

Goal IV: Safe & Healthy Community 

Objective 1: Police Department – Gang Prevention & Suppression 

1. CONTIGO, Neighborhood Gang Prevention & Intervention Program 

2. Gang Violence Suppression 

3. Safe– Gang Prevention & Intervention 

4. Santa Cruz County Auto Theft Recovery & Enforcement 

5. Santa Cruz County Narcotics Enforcement Team 

Objective 2: Work With the Community & School District 

5. “CPR” Crime Prevention Response (I.E. Neighborhood Watch, Safety Academy, National Night 

Out) 

6. Community Policing 

7. Police Activities League (PAL) 

8. Police Cadet Program 

9. School Resource Officer PVHS & WHS 

10. Truancy Abatement – Crime Suppression 

Objective 3: Healthy Community 

11. Neighborhood Meetings 

12. BASTA 

Objective 4: Fire Department 

13. Telestaff Time Recording/Reports 

14. Internal 2011 Strategic Plan 

Objective 5: Crime Prevention & Law Enforcement 

18. Alcohol Licensing And ABC 

19. Automated Fingerprint Information System-Bar Coding & Thumbprints In Field 

20. Community Post Incident Team 

21. Crisis Negotiation Response 

22. Narrowbanding 

23. Traffic Enforcement Enhancement BADGES/AVOID9 

8

Department Current Projects and Initiatives & Core Mission 

9

Current Initiatives 

Administration 

Resources Used 

When 

Completed 

Staff Division Cost 

Channel 70 Programming H Administration $ On-going 

Wingspan City Manager eNewsletter H Administration $ On-going 

Action Pájaro Valley 

Measure U Implementation 

VH Administration $$$ On-going 

City-wide Newsletter H Administration $$$ On-going 

Pájaro River Flood Control VH Administration $$$ On-going 

Downtown Economic Development VH 

Administration, 

Redevelopment 

$$$ On-going 

Redistricting Process H Administration, $$ 2011 

General Plan & EIR Update 

VH 


& Community 

Development 

$ 2012 

Staff Mayor’s Ad-Hoc Subcommittee H Administration $ On-going 

Social Services Grants Mayor’s Ad-Hoc 

Subcommittee 

H Administration $ On-going 

Labor Negotiations VH Administration $$$ 2011 

Budget Crisis Response VH Administration $$ On-going 

Manabe-Ow Business Park Development VH 


Redevelopment 

& CDD 

$$$ On-going 

Administration Core Mission (Partial List) 

Voting / Elections 

Records Custodian 

Drafting of Ordinances & Resolutions 

Fair Political Practices Commission (FPPC) Filings 

City Council & Redevelopment Agency Agenda Preparation 

Classification & Compensation 

SMART Training Program 

Recruitment & Testing 

Personnel Commission 

Disciplinary Process 

Constituent Requests 

Council Member Requests 

Social Service and Community Service Grants 

Legislation 

Homeless Program 

Labor Negotiations 

Grievance Process 

Downtown Public Parking District 

10


Community Development 


When 

Completed 


Update of General Plan and EIR VH Planning $$$ 2011 

General Plan Implementation: 

Title 14 and map revisions 

VH Planning $$ 2012 

Implementation of Manabe-Ow Specific 

Plan 

VH Planning $$$ Ongoing 

Historic Ordinance Revisions M Planning $ 2011 

Community Development Core Mission (Partial List) 

Building Related Services: 

Permit Center 

Plan Check (Building & Fire) 

Over-the-counter services (Building & Fire) 

Permit Issuance (Building & Fire) 

Inspection (Building & Fire) 

Access Coordination (ADA and Title 24) 

Code Assistance and Coordination with City Departments 

Code Enforcement 

Citizen Complaints 

Pro-active Enforcement 

Property Maintenance 

Weed Abatement 

Foreclosure monitoring 

Development Engineering 

Plan Check and Permit Issuance 

Water and Sewer ―will serves‖ 

Addressing 

Floodplain Administration 

Planning 

Development Review (Current Planning) 

Long Range (General Plan/Specific Plans/Ordinance Revisions) 

Annexations 

Interagency Coordination 

Planning Commission 

Minor Land Division Committee 

City Council 

11


Finance 


When 

Completed 


Animal Services Authority of SC 

County Board Chair 

VH Accounting $ On-going 

Public Agency Risk Sharing 

Authority of California Finance VH Accounting $ On-going 

Committee 

Central Coast Broadband 

Information 

VH 

Consortium Board Chair 

Technology 

$ On-going 

Transition Check Printing to Finance M Accounting $ July 2011 

Cross-train staff with other customer 

service departments 

M Revenue $ On-going 

Recommendation on Solar Panel 

Accounting, Public 

H 

installation on City owned Facilities 

Works 

$$$ May 2011 

Complete Health Care Broker RFP M Accounting $ March 2011 

Evaluate Budget Options for 

Accounting, 

VH 

2011/12 Fiscal Year 

Revenue 

$$$ June 2011 

Streamline internal reporting 

Accounting, 

M 

functions 

Revenue 

$ Nov 2010 

Refinance City Debt Issues H Accounting $$$ On-going 

Relocate Emergency Operations 

Information 

H 

Center 

Technology 

$ August 2010 

Wireless Local Area Network 

Automated Fingerprint Information 

System-bar Coding & Thumbprints 

in Field 

VH 

H 

Information 

Technology 

Information 

Technology 

$$$ August 2011 

$ December 2011 

12

Finance Core Mission (Partial List) 

Accounting & Financial Reporting 

Accounts Payable 

Accounts Receivable 

Audit 

Independent (Includes preparation of Request for Proposal) 

State 

Federal 

Compliance 

Internal Controls 

Banking Request for Proposal 

Business License Administration & Collection 

Budget 

Long Range Forecasts 

Preparation And Development 

On-Going Management And Compliance 


Debt Issue And Administration 

Information Systems 

Application Support 

Architect Of, Design And Consult On Systems 

Citizen Communication Interaction 

City-Wide Records Management 

Core Infrastructure Maintenance And Growth 

Data Back-Up And Restoration 

E-Government 

Geographical Information Systems (GIS) 

Internal website maintenance 

Public website administration, maintenance and design 

Wingspan maintenance 

Other Internal Services 

Grant management and reporting 

Financial Analysis 

Investments & Cash Management 

Payroll 

Purchasing 

Rent Control 

Risk Management 

Safeguard City Assets 

Transient Occupancy (aka Hotel) Tax Administration & Collection 

Utility Management for Citizen services 

Billing 

Collection 

Customer Service 

13


Fire 


When 

Completed 


Telestaff Time Recording/Reports VH Administration $$ In Progress 

City Disaster Response Plan H Administration $ In Progress 

City Staff Training for Disaster Response H Administration $ In Progress 

Department Core Mission (Partial List) 

Emergency Fire/Rescue/Medical Response (2008: 4,110 incidents) 

Maintenance of Equipment, Fleet, and Facilities 

Training, Professional Development and Succession Planning 

Public Education and Community Outreach 

Target Hazard Pre-Incident Planning 

Fire Prevention Inspections and Permitting 

Firefighter Health and Safety 

Interagency Command Unit Facilitation 

Cooperative Fire Protection/Automatic Aid Agreements 

Library 

Library Core Mission (Partial List) 

Literacy Program (Opportunity to Read) 

Public Access Computers in Computer Lab and Early Learning Stations in Children’s 

Area 

WiFi 

Community Access to Online Databases 

Resource Sharing with Other Libraries – Local and Nationwide 

Welcoming Space for Groups and Meetings 

Designated Teen Area 

Provide Materials and Resources in Many Formats 

Answer Questions 

Programming for Adults, Teens and Children (Story times in English and Spanish) 

Outreach to Community (LibraryLink) 

Classroom Visits and Library Tours 

Homework Help 

Pursuing Grant Opportunities and Collaborations with Local Groups and Businesses 

14



Neighborhood Development 

Program at Carey/Davis 

CONTIGO, a Marinovich 

Neighborhood Gang Prevention & 

Intervention Program 


When 

Completed 


Neighborhood 

VH Services $$$ 2012 


Recreation 

VH Administration $$ December 2012 

WPD 

Parks and Community Services Core Mission (Partial List) 

Operate 3 Computer Centers (ECYN, Marinovich & Ramsay) 

Operate After-School Drop In Program at 5 Recreation Facilities (Callaghan, Marinovich, Ramsay, 

Muzzio, Youth Center) 

Youth Advisory Council 

Get Out Get Fit Camp—Obesity Prevention Program 

Youth Late Night Activities and Special Events 

Implement special events at recreation centers (e.g., Cesar Chavez Youth Volunteer Recognition 

Awards, Lights On After School, Operation Recreation) 

Neighborhood Development Program (Carey/Davis) 

Recruit/Train Volunteers for Post Incident Team (PIT) and Respond to Incidents 

Neighborhood Watch Program 

Census Count 

Coordinate Neighborhood Meetings 

National Night Out 

Coastal Clean-Up held at Ramsay and River Park/Levy 

Seeds of Love Holiday Event 

Maintain 26 Parks (17 with Playgrounds) and 9 Public Grounds 

Maintenance of 3 LLMAD Districts (Gonzalez, Bay Breeze and Vista Montana) 

Maintain over 400 street trees and 17 parking lots 

Commemorative Tree and Bench Program 

Implementation of Park Master Plan 

Boys Sports Programs (soccer league, sports camps) 

Men’s Sports Program (Softball, Basketball) 

Women and Girls Sports Program (Soccer, Softball, Coed Volleyball, Coed Softball, sports camps) 

Summer Aquatics Program 

Summer Lunch Program 

Itty Bitty Sports 

Special Interest Classes for all ages (e.g., physical fitness, art, first aid & CPR, lifeguard training) 

Adult Trips Program 

Special Events Committee 

Coordinate, implement and/or facilitate implementation of City-wide Community Events (4 th of 

July Parade, Veteran’s Parade, Watsonville Strawberry Festival, Day of Child/Earth Day, Holiday 

Factory Sale, Snow Day) 

Administration of Community Special Event Applications 

City’s Volunteer Program 

Manage Reservations for use of Civic Plaza Community Room 

Facility Rental Program 

Department Customer Service Office (Registrations, information & referral) 

Update of City Website 

15


POLICE 



When 

Completed 

Alcohol Licensing and ABC H Support Services $ On-going 

BASTA H Chief & Admin $ On-going 

Administrative 

CalGRIP S.A.F.E. Initiative 

L Support $ 4/1/2012 

Community Post Incident Team H Operations $$ On-going 

Gang Violence Suppression VH Operations $$$ On-going 

Narrowbanding VH Chief & C.M. $$$$$ 2013 

Operations & 


VH Support Services $ Every August 

Neighborhood Meetings H Operations $ On-going 

Police Activities League & Police 

Cadet Program H Support Services $$ On-going 

School Resource Officer- 

PVHS/WHS H Operations $ On-going 

Traffic Enforcement Enhancement 

BADGES/AVOID 9 H Operations $ 

On-going 

16

Police Core Mission (Partial List) 

Abandoned Vehicle & Abatement Program 

Budget & Financial Management 

Crime – Traffic - Intelligence Analysis 

Crime Scene Investigations 

Crime Suppression – Prevention & Officer Initiated Activity 

61,643 Police calls for service & self-initiated activities FY 09-10 

7,188 Case Reports filed in calendar year 2010 

2,972 Adult and Juvenile arrests in calendar year 2010 

16,709 Moving and Parking citations issued in FY 09-10 

36 crimes per 1,000 crime rate in 2010, declined 15% from 2009 

Criminal Investigation 

Criminal Reports and Record Retention 

Criminal Registrants – Sex and Drug Offenders 

False Alarm Activations and Other Fee Payments for Services 

Field and In-Service Training Programs 

Fleet Management 

Grant Application, Program and Fiscal Management 

Internal Affairs 

Parking Enforcement and Administrative Review 

Permits & License (Taxi Cab, Amplified Sound, Tow Truck, Entertainment) 

Policy Manual /LEXIPOL 

Property & Evidence Processing, Retention, Retrieval, & Quality Control 

Public Information Officer 

Recruitment and Retention of Police Department Employees 


Traffic Enforcement, Prevention and Accident Investigation 

Uniform Crime Reports and Arrest Citation Register 

Vehicle Tow Review and Fee Program, Vehicle Releases 

Canine Program 

Chaplain Program 

Asset Forfeiture 

Crisis Negotiation Response 

Domestic Violence Data Collection & Reporting 

Downtown Drunk & Disorderly 

Graffiti Enforcement 

Guest Speaker Request 

Labor Negotiation/Contract Assistant 

Levee Camps 

Major Project Review Team 

Police Service Specialist Federal Grant 

Ride Along Program 

Santa Cruz Auto Theft Recovery & Enforcement 

Santa Cruz County Anti-Crime Team 

Santa Cruz County Office of Education ROP 

School Attendance Review Board 

Speaker’s Bureau 

Truancy Abatement Crime Suppression 

Volunteer Program Management 

Gang Violence Suppression (JAG) 

17



18 


When 

Completed 


Regional Pájaro River Flood Control 

Project 

M Admin/Engineering $ On Going 

Neighborhood Traffic Program M Admin/Engineering $ On Going 

Highway 1/Harkins Slough Road 

Interchange 


City Trails Master Plan (Grant) M Admin/Engineering $ 2012 

Neighborhood District Meetings M Admin/Engineering $$ On Going 

AB 32 Greenhouse Gas Reductions M Admin/Engineering $ On going 

Roof Top Solar Power Projects H Admin/Engineering $$ 12/11 

Large Scale Solar Projects at 

M Admin/Engineering $$$ On Going 

Landfill & Airport 

Freedom / Main Roundabout M Admin/Engineering $$ 12/13 

Ohlone/Beach Street Signal M Admin/Engineering $$ 12/11 

Pavement Maintenance Project M Admin/Engineering $$$ On Going 

Freedom Blvd. High To Lincoln 

Reconstruction 

H Admin/Engineering $$$ 12/11 

Freedom Lincoln to Davis Design M Admin/Engineering $$$ 12/11 

Manabe/Burgstrom Wetlands 

Restoration Phase 3 


Integrated Waste Task Force M Admin/Engineering $ On Going 

Urban Greening Planning Grant M Admin/Engineering $ 12/12 

Implement Phase II Storm Water 

H Admin/Engineering $ On Going 

Program 

City Facility Storm Water 

Monitoring 


Watsonville Slough Restoration M Admin/Engineering $$ On going 

Labor Negotiations M Admin/Engineering $$$ On going 

TMDL Program For Drainage To 

M Admin/Engineering $ On-going 

Surface Water 

Pinto Lake 319h Grant M Admin/Engineering $ 12/12 

Pinto Lake C&A Grant M Admin/Engineering $ On Going 

Pinto Lake Invasive Species 


Monitoring 

CEC Funded LED Street Light 

Replacement 

M Admin/Engineering $$ 12/11 

PG&E 0% Loan LED Lighting 

Retrofit 


Wetland Trails Construction M Admin/Engineering $$ On Going 

Pinto Lake Toxin Testing M Admin/Engineering $ On Going 

Landscape Water Audits M Admin/Water $ On Going 

Water Main Replacements H Admin/Water $$$ On Going 

Water Fluoridation Implementation M Admin/Water $$$ 9/12 

Corralitos Water Filter Plant 

Upgrade 

H Admin/Water $$$ 

Pursuing Grant 

Funding



When 

Completed 


SCADA Systems Upgrade H Admin/Water $$ 12/11 

Zone 2 Reservoir H Admin/Water $$$ On Hold 

Hames Reservoir Improvements M Admin/Water $$ 12/11 

Urban Water Management Plan M Admin/water $ 12/11 

Watershed Sanitary Survey M Admin/Water $ 12/11 

Toilet Retrofit Program M Admin/Water $ On Going 


Meter Reading Upgrade M Admin/Water $$ On Going 

Pajaro River Trails Project M Admin/Wastewater $ 12/12 

Fine Bubble Diffusers for Energy 

H Admin/Wastewater $$ 12/12 

Savings 

Materials Recovery Facility 

Modifications 

M Admin/Solid Waste $$$ On Hold 

Landfill GHG Monitoring & 

Reporting 

M Admin/Solid Waste $ On Going 

PDO Facility Improvements H Admin/Solid Waste $ 12/12 

Expansion of Commercial Recycling M Admin/Solid Waste $ On Going 

Recycle Audits M Admin/Solid Waste $$ On Going 

Implement New State Recycling 

Mandates 

M Admin/Solid Waste $ 12/12 

Design & Construct Airport Capital 

Improvement Projects 

H Airport $ On Going 

Acquisition of Armory M Airport $$ 12/12 

Traffic Calming for improved traffic 

flow 

H Admin/Engineering $$ On going 

19

Public Works & Utilities Core Mission (Partial List) 

Street And Sidewalk Maintenance 

Street Light System Maintenance 

Street Sweeping 

Coordinate Caltrans Projects Within City Limits 

Traffic Systems Maintenance 

Traffic And Transportation 

Capital Improvement Project Design 

Project Construction Management 


Graffiti Abatement 

Vehicle And Equipment Maintenance 

Environmental Education – (Classroom, Science Workshop, Nature Center, Facility 

Tours) 

Building And Facilities Maintenance 

Flood Control 

City Wide Safety Program 

Regional Water Systems Operation and Maintenance 

Regional Wastewater Treatment Facility Operation and Maintenance 

Landfill Operation and Maintenance 

Solid Waste and Recycling Collection 

Household Hazardous Waste Drop Off 

Public Drop-off Facility 

Wastewater Collection System (pipelines, pump stations) 

Stormwater Collection Systems (pipelines, pump stations) 

City laboratory Analytical Services 

Industrial Source Control Program 

Stormwater Pollution Prevention Program 

Underground Service Alert Utility Location 

Recycled Materials Processing 

Manage Airport Operations & Capital Improvements 

Oversee & Manage City Capital Improvement Projects 

20

Redevelopment and Housing 

Note: ―Redevelopment‖ includes Economic Development 



When 

Completed 


Storefront (Façade) Improvement 

Redevelopment $$$ 

M 

Program 

Construction Grant 

Ongoing 

Continuation of Downtown Streetscape 

Redevelopment, $$ 

M 

Improvement Plan 


2012-13 

Guaranteed Loan Program for business M Redevelopment 

$$$ 

Grant 

Ongoing 

Continued Implementation of Stoesser 

Alley Master Plan – Parking Lot & H Redevelopment $$$ 2012-13 

Trash Enclosure 

Extend Timeline For Enterprise Zone M Redevelopment $ 2012 

Develop Data & Resources for 

Industrial Property/Business 

Inventory of vacant and 

underutilized property 

Inventory of industrial 

businesses 

Information and marketing data 

for industrial property 

M Redevelopment, $ 2011 

Business outreach program H Redevelopment $ Ongoing 

Business Recruitment program H Redevelopment $ Ongoing 

36 Airport Road – mixed market rate 

and affordable housing project 

Sale of City or Agency property for use 

as affordable housing 

Assist in creation or preservation of 

affordable housing project 

Marketing/Underwriting for potential 

re-sale of affordable housing 

Implement Public Art Program, to 

include murals, artwork on utility boxes 

outdoor sculpture, etc. Explore 

promotion and enhancement of cultural 

resources and facilities. 

Targeted Neighborhood marketing for 

Housing Rehabilitation Program 

L Housing $ 2012 

VH 

VH 

Housing, 

Redevelopment 

Housing, 

Redevelopment 

$ 2012 

$ 2011-12 

M Housing. $ Ongoing 

M Redevelopment, $$ 2011 

M Housing $ Ongoing 

21


Business Assistance/Business Retention, Attraction, Expansion: 

Business Development Training: Act as resource, referral and provide funding for 

organizations that can provide business development assistance. 

Provide resources on the Economic Development Website 

Continue to support assistance to microbusiness through El Pájaro CDC 

Continue to Administer Commercial Loan Programs 

Site Location Assistance 

Maintain Database of Commercial/Industrial properties 

Business Visitation Program 

Enterprise Zone Operation: Outreach & Marketing 

Promote and participate with educational institutions in program to increase educational 

attainment and job skills training. 

Manage Civic Plaza Building Property Owner Association 

Manage leased premises in Civic Plaza & West Beach St Parking Garage 

Implement Redevelopment Plan – 

Public improvement programs serving the Redevelopment Project area 

Development assistance, as available and as authorized by the Community Redevelopment 

Law and the Redevelopment Plan 

Compliance with Redevelopment Implementation Plan 

Tourism Development 

Housing Rehabilitation Program: 

• Loans for Rehabilitation of Rental and Owner-Occupied Housing 

• Farmworker Housing Grants 

Homeownership Programs: 

• First Time Homebuyer Loans 

• Downpayment Assistance Loans 

Assist in the development of affordable rental housing 

Assistance with implementation of City Relocation Assistance Ordinance (for those displaced due 

to housing code violations in private housing) 

Affordable Housing Ordinance Implementation 

Grant Programs/Management 

Redevelopment Agency Housing Activities 

General Administration, Housing Programs: 

Housing Element 

• Implementation 

• Annual report to State Housing & Community Development Department 

22

Department Proposed New Initiatives and City Council Priorities 

23

Rank 

3 


Possible New Initiatives 

Comprehensive Review and 

Update of Administrative Rules 

and Regulations 



When 

completed 

H Administration $$ 2011 

11 Keep City Employees Working VH Administration $$$ 

Social Media Network sites M Administration $ 2011 

Rank 

Finance 




When 

Completed 

2 

Implementation of new 

Enterprise Resource Planning 

(ERP) system 

H All Divisions $$$ 

Portions will 

be 

implemented 

as funding is 

allocated 

Rank 

Fire 


Internal 2011 Strategic Plan 



When 

completed 

9 

1. Continually enhance 

communications 

2. Attain resources to meet 

the needs of our constituents 

3. Succession planning 

H All $ 6/30/13 

24

Rank 

13 

Police 


Comprehensive Anti-Gang 

Strategies & Programs, 

Traffic Safety – Driver, 

Pedestrian, Bicyclist and Child 

Passenger – Party and 

Saturation Patrols, Responsible 

Hospitality 

Juvenile Diversion and Gang 


Crime Analysis 



H 

Operations 

Admin 

Services 

L Operations S 

L 

L 

Support 

Services 

Admin 

Services 

$ 

$ 

$ 

When 

completed 

Federal Grant 

Initiative 

10/1/2011- 

9/30/2014 

State Office of 

Traffic Safety 

Grant 

10/1/2011 – 

9/30/2013 

Seeking ongoing 

funding source 



2 

Community Assessment of 

Gang Problem 

Criminal Justice Council – 

Focused on Gang Violence 

Problem Solving 

H 

H 

Admin 

Services 

Chief/ 

City Manager 

$ 

$ 

Phase 1- July 

2011; Phase 2 – 

December 2011 

Proposed policy 

level initiative that 

would be ongoing 

25

Rank 

13 

4 

Public Works 


Increase Funding for Street 

Maintenance 

Freedom Blvd Utility 

Undergrounding High to 

Lincoln 



M 

M 

Admin/ 

Engineering 

Admin/ 

Engineering 

When 

completed 

$$$ On-going 

$$$ 

2015 

Rank 

12 

Redevelopment & 

Housing 


Revitalize Industrial Core: 

Provide assistance to 

businesses in adapting to 

changes 

Provide public 

improvements as needed 

Establish industrial 

façade rehabilitation 

program 

Initiate purchase and resale of 

inclusionary housing in danger 

of being lost. 

Initiate planning, & possibly 

development, for workforce 

housing portion of Manabe-Ow 

property 

H 



When 

completed 

Redevelopment, $$$$ Ongoing 

H Redevelopment $$ 

M Housing $$ 

2011 

26

Watsonville City Council Proposed Initiatives & Final Scores 

1. Emergency preparedness 4 

2. Strategic Expenditure Reduction, including eliminating all non essential services 4 

3. Closure time in July 

4. Fee Study/Review Fees and increase as possible 6 

5. Identify new potential fees 3 

6. Reduce Over-time 2 

7. Departments to identify cost savings 3 

8. Broadband 8 

9. Re-route Hwy 152 3 

10. Improve crosswalk safety 3 

11. Improve Alleys 3 

12. Solar Energy 4 

13. Code Enforcement – Life safety (including garages) 7 

14. Green Jobs – Incubator 5 

15. Emission Reduction Grants 

16. Accept Payment for Parking Tickets 

17. (new) expand tourism, festivals and entertainment opportunities 2 

27

Appendix 

28

User Fee Study 

In order to address updating/reviewing the City’s fees for services, and to consider new fees, staff has 

recommended that the City Council consider authorizing a User Fee Study, which would be conducted by a 

consultant and cost approximately $50,000 to $75,000. It could be funded by the General Fund and 

Enterprises, including Redevelopment, since it would affect all user fees (for services offered), not including 

water/sewer/solid waste rates. 

This Study would review the City’s current cost recovery for services and would also analyze the new fees 

suggested by City staff during this process. The consultant would advise the City as to the legality of certain 

fees, what the true cost to deliver the service is, and what is recommended based on the City’s needs, other 

communities, etc. 

Some of the fees that could be considered include (these are only suggestions and do not represent new 

fees at this time): 

1. All current fees for services 

2. Charging for a person to pick up their confiscated firearm when the court dismisses the case and the 

court orders the guns released. 

3. Private Property Tows. 

a. We processed 71 Private Property Tows from January 1, 2011 to March 23, 2011. 

b. If we were collecting $20.00 for the Private Property Tows, we would have collected 

$1,420.00.Repossessed Vehicles 

2. We processed 95 Vehicle Repossessions from January 1, 2011 to March 23, 2011. The State allows 

Law Enforcement Agencies to charge $15.00 to the vehicle owner, before the vehicle can be 

released. Often the registered owner of the reposed vehicle is not going to the PD first but directly 

to the towing company and the result is the PD is not collecting the fee. The Towing Companies 

are supposed to send the registered owner to the law enforcement agency that received and 

entered the repossession information; and release the vehicle only when the registered owner 

shows the receipt for $15.00 from the law enforcement agency. 

3. Registration Fee: Charge a registration fee for all Sex, Narcotic, Arson, and Gang Registrations. 

Suspects are ordered by the court to register with us. 

4. Muni-Code Curfew Violation: we could issue a muni-code curfew violation for minor's being out 

after 10 pm. Have the parents pay the fine to WPD. No court date. Set a fine amount. 

5. Truancy: we could issue muni-code truancy violation for minors not attending school. Have the 

parents pay the fine to WPD. No court date. Set a fine amount. 

6. Missing Person Cases: Repeat Runaway Juveniles 

7. Court Fines: Ask the court to raise the fine amounts on all infractions, misdemeanor, and felony 

charges. 

8. Increase Ramsay carwash facility rental fee from $90 to $125. 

9. Implement After-school Drop-in Program Membership Fee ($5 monthly/$20 annual/$25 family) 

10. Establish contract with food vendors (portable kiosks) to sell food/beverages in the Parks (Ramsay, 

Franich & Callaghan) 

29

11. Increase rental fees of City Plaza 

12. Rent banner space at Ramsay Park softball and soccer fields & Callaghan Park 

13. Not renew Soccer Central Lease beyond June 30, 2012 and PCS assume operation of indoor sports 

leagues. 

14. Collect a fee for City and County new water service applications. 

15. Implement an “additional inspection fee” for those cases where the applicant is at fault for 

numerous “re-inspections”. 

16. Increase fee for foreclosure registration (currently $50) 

17. Charge for reports requested by vendors (of subscription services) for permit activity. 

18. Review “certified, receipt requested” mailing process. 

19. Charge for “stop work” citations 

20. Shop around for office products and buy bulk. Buying local, in small quantities is more expensive. 

21. Use Code Enforcement staff to cite for violation of water conservation measures contained in the 

Municipal Code (yard watering with non-drip during the day, water waste running down the 

sidewalk, etc.) 

22. Charge for handouts we currently give free (code sections, samples, etc.) 

23. Increase “address assignment” to recover all costs. Fee currently $61. 

24. Charge for Utility Field Service Calls (shut-off onsite notification, leak response, after3:30 response) 

25. Eliminate special event exceptions 

26. Install intelligent parking meters 

27. Institute changes for Interlibrary Loan: 

a. First 5 requests free, then charge $10 each (cost of each ILL is $40) 

28. Raise fine limit to $5.00 

29. Increase photocopy charges from $0.10 to $0.20 per copy. 

30. Initiate fee for researching past vouchers for Enterprise Zone Participants 

31. Initiate proposed fee increase for issuing EZ Vouchers 

32. Charge grants for staff time associated with loan processing and design 

33. Charge a fee for subordination and refinance requests for affordable/rehabilitation loans 

34. Initiate an inspection fee for first-time homebuyer properties 

35. Modify façade program to increase assistance, but structure as loan 

30

Environmental Assessment 

S.C.O.T. 

Strengths – Challenges – Opportunities - threats 

Strengths 

Community 

Diversity 

Fastest growing city in the Region 

Youth 

Community innovative/resilient 

Community used to public transportation 

Government 

Good Council 

City staff/Dedicated 

Relationships with State Officials 

Managed financial resources well 

Council- good communication 

Staff focused on big picture 

All employees work together to get things accomplished 

Rank and file employees have taken 2 years of furloughs voluntarily 

We are taking leadership roles in Regional Organizations 

Lack of bureaucrats in City organization 

Success in obtaining grants 

Community partnerships 

City is forward thinking/youth/environment 

Boldly take on challenges 

Confront internal/external issues 

Aware of communication issues – Emergency preparedness 

Infrastructure 


Public works-streets 

Advancements in technology – Wi-Fi 

Innovation – Green Policies 

Science workshop/Environmental education 

Graffiti abatement 

We are leaders in broadband effort 

Mello center – potential, downtown performance venue 

Staff leadership on Pájaro River Levee reconstruction 

31

Other 

Library provides wonderful services – schools and community 

New water treatment plant 

Infrastructure – Civic Plaza, Water Treatment Plant 

Disaster preparedness outreach 

Slough trail system – Eco Tourism – Slough Master Plan 

Other Central Valley cities having harder time 

Quality as Economically Disadvantaged Community 

Agriculture 

Mural program 

Local students attend best colleges in the country 

We live in desirable area, climate, weather 

Historic downtown, Plaza, Cabrillo College 

Green technology 

Prevention/education programs 

We live in 2 nd smallest county in state 

Challenges 

Fiscal 

Court Move 

Unemployment rate 

Financial/State takeaway/ Mortgage crisis 

Unfunded State mandates, especially water & storm drain 

Meet Capital Improvements (CIP) needs 

Litigation threats 

State budget 

Threat to RDA 

Federal funding for Army Corps for Levy 

City Budget deficit 

Pension costs 

Retail leakage 

Contract negotiations – asking staff for cuts Year 3 

Government 

Redistricting 

Maintain organization with no bureaucracy 

Fastest growing city in the county 

General Plan –Vista 2030 

Confronting issues that take away from Council focus 

Budget transparency 

Communication with the public 

Emergency preparedness and communicating threats to public 

32

Community 

Increase in gang violence 

Downtown development 

Young community 

Job creation 

Agricultural workers needed – Who will harvest? 

Brain drain – college graduates don’t return to City 

Educational attainment not high enough for some jobs 

More cohesiveness in community and other agencies 

How to make downtown more vibrant 

Home overcrowding 


Graffiti abatement – still a challenge 

Levy 

Levy improvements not coming soon enough and disagreement with 

Monterey and Santa Cruz County 

How to make the rest of levy safe for walking/bike 

Meeting our required park acreage 

Public transportation access – How do we maintain it? 

Highway 152 

Falling behind on technology – Finance software 

Deliver more library services to people in the City (not at library) 

Adequate code enforcement 

Traffic 

Parking city-wide. Too many cars 

Funding/continuing technology 

Implementation of fluoride 

Maintain public safety 

Landfill capacity 

Maintain infrastructure water/sewer/Fire Station 3 

Other 

Vacant homes 

Vast difference with North County about the needs of South County 

Board of supervisors not having meetings in South County 

Opportunities 

Fiscal 

Tap into funding for jail realignment 

Another round of incentives (Federal funds – type ARRA) 

Increase tourist dollars. Marketing of events 

33

Bulk purchase with other agencies 

Utility systems/capacity/ability to expand (i.e. Merge with Salsipuedes district) 

Advocate/showcase our excellent programs and projects (i.e. PIT) 

Retail improvement – resulting in more jobs 

Communication/Community 

Communication/engage with the public – expand media used for outreach 

(radio) 

More public input from community 

Engage community who has not been reached 

Engage voters/walk districts and talk to voters 

Increase civic engagement 


Downtown 

Wireless for cities 

Share bounty and wealth of agricultural innovations, opportunity to 

Provide services to agricultural entrepreneurs 

We own water – How do we increase aquifer ownership 

Infrastructure maintenance and upkeep/update 

Work with agriculture to help solve our water supply problem 

Government 

Council itself – experience and strength 

We are honest government and must continue / integrity 

Council doing the work to assess current City situation 

Reputation of City staff attracts good employees 

The culture of the City – must be protected 

Other 

Proximity to beach – use it to promote recreational activities/sports 

Create new collaborations with academic institutions 

Business friendly city 

Diversity 

Ignore threats of lawsuit if the service/program/project is worthwhile 

Threats 

Public Safety 

Jail realignment/Funds re-directed to County 

Reduced service levels, Police/Fire – State All-cuts budget 

State All-cuts budget – no funds for CIP/Police/Fire 

Retirements in Police Dept 

Fiscal 

State “All-cuts budget” impact on City 

National/Federal budget impact on City 

34

Loss of Federal earmarks 

Los of federal funds for river project 

Voter initiatives that could reduce revenue 

Lawsuits 

Litigation – Airport 

Community 

Drug & alcohol rehabilitation programs 

Maybe a disengaged public/Lack of buy-in 

Levee, if we don’t get it fixed 

Cuts to UC/CSU system would impact our community 

Lack of educational attainment in the community 

After-school program cuts 

Failing school system, Low educational attainment – 

Possible State takeover of local schools 

Mortgage crisis 

Reduced human services for families 

Misguided voter being given wrong information 

Labor 

Pensions 

Arbitration/labor 

Losing city employees to other cities 

Loss of Morale – after 3 rd year of negotiations 

Other 

Lack of water 

Traffic/State Highways running through the City 

What is “Transparency”? 

35

CITY COUNCIL/REDEV # 6.2 (b) 





TO: 

FROM: 

SUBJECT: 



HOLD THE FINAL PUBLIC BUDGET STUDY SESSION TO 

REVIEW THE 2011-2016 CAPITAL IMPROVEMENT PLAN (CIP) 

AND ADOPT THE 2011-2012 PROPOSED BUDGET AND THE 

5-YEAR CIP 

AGENDA ITEM: June 14, 2011 Joint Redevelopment & City Council 


That as part of its third public budget study session, the City Council and Redevelopment Agency 

receives any final changes to the Proposed 2011-2012 Budget and the 2012-2013 projected 

budget plan, (2) reviews the City’s 5-year Capital Improvement Plan (CIP) and (3) adopts the 

Proposed 2011-2012 Budget with the actions listed below. 

GENERAL & OTHER FUNDS 

1. That the City Council shall make the following motions: 

1.1. Approve the terms between the City and the City’s Water, Sewer and Solid Waste 

Enterprise funds for a $103,000 monthly payment for the use of the City’s land effective 

July 1, 2011 and thereafter subject to the City’s annual Consumer Price Index 

adjustment process; and 

1.2. Approve the General Fund’s 8% property management rate to be applied against 

payments to other funds for use of their property, including such funds received by the 

Airport from third parties (i.e., hangers, building leases); and 

2. That the City Council shall adopt the following resolutions: 

2.1. Approve a 5% increase above the annual CPI increase for all Airport Hanger rates 

2.2. Reduce the City’s annual Consumer Price Index (CPI) rounding methodology for all non- 

Utility (Water, Sewer & Solid Waste) fees that are under $5 to round up to the next 5- 

cent increment rather than the next whole dollar and reducing the photocopy fee to a flat 

$0.25 per page not subject to annual CPI changes; and 

2.3. Adopt the FY 2011-2012 Strategic Plan; and 

2.4. Reaffirm the City’s option to hire hourly firefighters; and 

2.5. Establish the “Total Annual Appropriations” pursuant to State Constitution Article XIII-B 

for Fiscal Year 2011-2012 (Proposition 4 GANN spending limit); and 

2.6. Adopt the GASB 54 Fund Balance policy; and 


Pimentel 6/9/2011 4:26:10 PM 

P:\budget 2011-2013\Presentations-Reports\2011-0614\SR-BudgetF2_2011-0614.docx

2.7. Implement Government Code Section 20691 and electing to pay employer paid member 

contributions to California Public Employees’ Retirement System (CalPERS) for City 

Clerk, City Manager and all employees in the Confidential Unit, Management Unit, Mid- 

Management Unit, and Service Employees International Union (SEIU)-Local 521 Clerical 

Technical; and 

2.8. Authorize the internal loan terms and conditions between the City’s General Fund and 

City’s Pooled Money Investment Account of up to $6,454,697 and authorize the 

defeasance of the CalPERS side funds for public safety plans. 

3. That the City Council adopt an ordinance to instruct the Santa Cruz County to levy and collect 

property tax on taxable property within the City of Watsonville for fiscal year beginning July 1, 

2011 to June 30, 2012 at the levy rate of 0.077% and allocating to the Retirement Fund. 

4. That the Joint City Council and Redevelopment Agency shall adopt the following resolutions: 

4.1. Adopt the FY 2011-2012 Budget & accepting proposed FY 2012-2013 budget plan, 

providing certain transfers of funds & approve the Five-Year Capital Improvement 

Program, as summarized in Exhibit 1 below. 

(amounts shown in millions) 

General 

Fund 


Proposed Operating Budget: Consolidated Fund Summary 

Special 

Revenue 


Debt 

Service 

Pimentel 6/9/2011 4:26:10 PM 

P:\budget 2011-2013\Presentations-Reports\2011-0614\SR-BudgetF2_2011-0614.docx 

Enterprise 

Funds 

Internal 

Service 

Exhibit 1 

Total All 

Funds 

FY 2011-2012 

Operating Revenue $ 33.17 $ 15.44 $ 11.74 $ 32.08 $ 7.62 $ 100.05 

Operating Expenses $ (33.17) $ (9.25) $ (1.92) $ (25.48) $ (7.54) $ (77.36) 

Debt & Transfers Out $ - $ (4.19) $ (7.40) $ (3.77) $ - $ (15.36) 

Capital $ (0.20) $ (15.37) $ - $ (46.34) $ (0.34) $ (62.25) 

Net Operations $ (0.20) $ (13.37) $ 2.42 $ (43.51) $ (0.26) $ (54.92) 

FY 2012-2013 

Operating Revenue $ 32.97 $ 12.74 $ 11.85 $ 32.10 $ 7.79 $ 97.45 

Operating Expenses $ (33.04) $ (5.86) $ (1.96) $ (25.45) $ (7.62) $ (73.93) 

Debt & Transfers Out $ - $ (4.16) $ (7.40) $ (3.76) $ - $ (15.32) 

Capital $ - $ (2.76) $ - $ (13.89) $ (0.03) $ (16.68) 

Net Operations $ (0.07) $ (0.04) $ 2.49 $ (11.00) $ 0.14 $ (8.48) 

4.2. Find that the use of taxes allocated from the Watsonville 2000 Redevelopment Project 

for producing, improving and preserving the supply of low and moderate-income housing 

outside the project area will be of benefit to the project area 


5. That the Redevelopment Agency shall adopt a resolution to authorize the expenditure of 

Redevelopment Agency low and moderate-income housing funds for planning and general 

administrative costs for the purpose of producing, improving, and preserving the community's 

supply of low and moderate-income housing.

DISCUSSION: 

The City is faced with major General Fund cost increases for 2011-2012 and overall is held 

financially hostage by the State’s $9.6 Billion operating deficit. The State has proposals ranging 

from elimination of the City’s Redevelopment Agency (RDA) to increased booking fees and loss 

of a $100,000 Police Officer grant; putting the General Fund at risk of losing up to $700,000. This 

is discussed later in this report. 

The City’s Proposed Biennial 2011-2013 Budget was released on May 20 th and the City held 

three public budget study sessions (May 24 th , June 7 th and June 14 th ). The Proposed Budget for 

2011-2012 offsets the projected $1.93 Million General Fund operating deficit and provides for the 

operations of all the City’s programs and services (General Fund, Utilities, Airport, Library, 

Redevelopment, Housing, etc). For more details, please review the City Manager’s 

comprehensive “Budget Message” along with the City’s detailed operating schedules for each 

fund, department and operation contained within the 2011-2013 Proposed Biennial Budget. Note 

that the budget summary in Exhibit 1 on the prior page shows deficits in all but the Debt Service 

funds. These are not operational deficits but rather planned Capital Projects expenditures that 

will be spent from prior year budget and fund balance allocations as discussed later in this report. 

The $200k in the General Fund from the City Council’s February 2011 Mid-Year allocation of 

funds in FY 2010-2011 that will be spent in FY 2011-2012. 

This June 14th budget study session will review the 5-year CIP, any changes to the Proposed FY 

2011-2012 Budget and adopt the “balanced” FY 2011-2012 Budget. Again, this public meeting is 

held against the backdrop of a likelihood that the State Legislature will take action prior to June 

15, 2011 towards the elimination or severe reduction of Redevelopment Agencies. 

The balanced budget was reached though a combination of across the board employee 

concessions that have reduced current salary levels, led to more employee contributions towards 

Pension costs and reduced for all new hires pension benefits. It also includes a city-wide service 

consolidation plan with unfortunately some layoffs and reassignments as noted in Exhibit 2 below. 

Operation Layoff Unfund or Notes 

Exhibit 2 Total 

reassign 

Police Admin 1 1 Layoff & vacant Admin Services Mngr 2 

Fire 2 Allocate 30% of Div Chief in addition 2 

to possible freeze of vacant position 

Finance 2 Reassign position 2 

Community 

2 2 Layoff to half time 2 positions and 4 

Development 

reassign 2 positions 

City Clerk; City Mngr 2 Reassign 2 positions 2 

Parks & Comm 

2 Vacant Rec. Superintendent and 

2 

Services 

reassign Parks Worker 

Redevelopment & 1 3 50% Layoff; reduce Director to parttime 

3 

Housing 

and reassign positions 

Public Works 1 Layoff 1 

TOTAL 5 14 19 

Another reduction not include in the table above is the future elimination of Fire Training Captain 

position. As condition of the Fire MOU, the City will eliminate this administrative position through 

attrition to achieve necessary savings to offset increased costs. 


Pimentel 6/9/2011 4:26:10 PM 


Millions 

As detailed in the City Manager’s budget message and May 24 th and June 7 th budget staff 

reports, the City’s pension rates will increase sharply in 2011-2012 followed by another but lower 

planned increase in 2012-2013. Adopting the lower compensation levels and lower pension 

benefits for new hires is projected to save nearly $1 Million by 2013-2014 (lowering projected total 

costs from $9.7 Million to $8.6 Million). Exhibit 3 summarizes the total pension costs since 2000- 

2001 and projected through 2013-2014. 

Exhibit 3 

$10 

$8 

$6 

$4 

$2 

$0 

Total Pension Costs (Actual & Projected after consessions) 

8.6 

Police 

7.7 

Fire 

7.4 

6.2 6.5 6.4 6.4 

3.3 

Misc 

5.2 5.6 

2.8 3.0 

4.3 

1.7 1.9 2.1 2.2 2.4 2.4 

2.6 

1.0 1.1 1.2 1.3 1.5 1.5 1.6 

1.6 

1.6 2.1 

1.3 1.3 

1.2 

1.0 

0.7 0.8 0.9 1.0 1.7 2.5 2.6 2.9 3.0 2.7 2.7 3.1 3.2 3.6 

0.2 0.3 0.2 0.6 0.4 0.8 1.1 0.5 

Of the $1.93 Million projected deficit that was adverted for 2011-2012, $1.4 Million were derived 

from projected public safety cost increases (pension costs, employee costs and overtime costs). 

As a point of reference, the City’s General Fund has seen increasing actual costs in public safety. 

Overtime costs, as shown in Exhibit 4, have far exceed what were normal levels for both Police & 

Fire. 

These levels added to the 

overall increased level of 

department budgets for Police 

and Fire. The City Council and 

staff continue to implement 

measures that will reduce 

overtime in Fire and Police. 

Also, to stabilize Fire costs, 

consolidation options were 

considered as a continuation of 

the 2006 Blue Ribbon 

committee’s recommendations. 

Staff performed a brief 

comparison between the City’s 

fire costs and the City of 

Yucaipa’s Fire costs through a 

consolidated CalFire contract. 

2,000,000 

1,800,000 

1,600,000 

1,400,000 

1,200,000 

1,000,000 

800,000 

600,000 

400,000 

200,000 

Fire 

Reimb 

Police 


Fire 

Reimb 

Police 

Pimentel 6/9/2011 4:26:10 PM 


- 

PUBLIC SAFETY OVERTIME 

Net Police and Fire of Reimbursements 

Fire 

Reimb 

Police 

Fire 

Reimb 

Police 

Fire 

Reimb 

Normal Overtime Levels 

Police 

Exhibit 4 

Fire 

Reimb 

Police 

05/06 06/07 07/08 08/09 09/10 10/11 Proj 

Fire 341,994 561,236 956,435 629,702 774,825 493,214 

Reimb 118,732 103,440 114,485 317,558 134,872 152,800 

Police 390,745 401,133 864,867 1,035,022 749,549 515,314

Millions 

$7 

$6 

$5 

$4 

$3 

$2 

$1 

$- 

Annual Fire Operations: City of Watsonville 

vs City of Yucaipa/CalFire 

$6.6 $6.5 $6.3 

$5.7 

$5.1 $5.2 

$2.3 $2.4 $2.7 

$3.1 

$4.0 $3.7 

Exhibit 5 

Watsonville 

Yucaipa 

Yucaipa was found to have 

similar population and 

service levels as Watsonville 

but much lower annual costs 

due to their CalFire contract. 

Exhibit 5 shows both cities 

costs from 2004/05 through 

the last completed fiscal 

year, 2009/10. In summary, 

Fire costs were over 40% 

lower in Yucaipa and $17.2 

Million lower over these 6 

years. 

Again, the concessions 

reached with our public 

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 

safety employees will help 

stabilize future cost increases. However, additional measures are still required to contain costs 

such as continuing the City Council’s previous direction to hire hourly firefighters to reduce 

overtime by using them instead of calling back firefighters on overtime to cover shift shortages 

(discussed later in this report). 

Summary of new and continued proposed operational changes & reductions 

In summary, because the City was able to reach agreements with all the employees units, it 

minimized the service level reductions and layoffs to those shown in Exhibit 6 below. 

2011-2012 City Wide Service Level/Operating Reductions 

Exhibit 6 

Retain same Friday closures and during Thanksgiving, Christmas & New Years weeks 

Employees increased compensation reduction to minimum 12% and remain on 4- 

day work week (includes Fire Chief, Police Chief and Deputy Police Chiefs) 

City Council will remain at a 10% compensation reduction 

Retain reductions in part-time/hourly staffing 

NO community service reductions in Fire, Police or Garbage pickup 

Watsonville Library- Main Street remains closed on Saturday; Freedom on Monday 

Freedom’s Saturday hours would remain 10am -6pm. . 

5 additional positions proposed for layoff 

Reduction in Community & Social grant funding by 10%. 

Retain reduction in Hope Services funding by 20% (from 5 days to 4 days) 

Retain reduction in the number of City Council Member district meetings. 

Retain reduction in Police Athletic League (PAL) funding. 

Retain a reduction in Animal Service Authority funding. 

Reduction in 911 center Joint Powers Authority funding of 8%. 

Further reduce maintenance of parks/public grounds & assume driving range maintenance 


Pimentel 6/9/2011 4:26:10 PM 


The reductions in the prior table are the continuation of many years of ongoing operation 

reductions that started as early as 2007, as shown in Exhibit 7 below. 

Exhibit 7 

General Fund Reduction Plans since 2007 

Timing 

Estimated Annual 

Savings 

Hiring freeze for all non-safety General Fund positions Winter 2007 $402k 

Reduce Capital projects Mid-Year 2008 $133k 

Freeze and eliminate various capital projects June 2008 $693k 

Staffing reductions implemented June 2008 $1 million 

Increase parking permits & fire false alarm fees; sold 

excess property 

June 2008 $120k 

Reduced General Fund staffing August 2008 $75k 

Reduced General Fund staffing October 2008 $120k 

Holiday layoff plan from 12/22/08 through 1/05/09. December 2008 Net $440k 

Administrative freeze on General Fund travel and 

training programs 

January 2009 $59k 

Freeze additional position January 2009 $106k 

Reduced General Fund staffing February 2009 $131k 

Increase Parking Citation rates March 2009 $110k 

Massive reduction plan for 2009-10: 

Up to 15% employee comp reduction, 3 layoffs & 20 

unfunded positions; unfund all General Fund Capital 

Projects; reduction in Community/Social grants, 911 

Center & Animal Services 

Additional eliminations of General Fund staffed 

positions & implemented a low-cost Voluntary 

Retirement program. 

June 2009 

Fall 2009 

$4.5 million 

Additional reductions of General Fund staffing February 2010 $379k 

Amendments to Vehicle Towing Services Ordinance March 2010 $183k 

Reduced General Fund staffing, personnel costs and 

social service grants, continuing reductions from prior 

budget cycle 

June 2010 

$1.5 million 

Mid-year reduction plan Feb/March 2011 $301k 

Further reduced General Fund staffing, personnel 

costs and social service grants along with city-wide 

consolidation and continuing reductions from the prior 

budget cycle 

June 2011 

$1.93 million 

It is the City’s hope that its current forecasts will remain on target. If so, and if the housing market 

and overall economy can avoid a double-dip and if the State can resolve its structural deficits 

without new and larger yet-to-be proposed reductions to the City’s resources, then overall the City 

may be able to control its financial future without the threat of major on-going deficits. This would 

be a major improvement over the last 3 to 4 years. 


Pimentel 6/9/2011 4:26:10 PM 


Pending Threat- Redevelopment Agency (RDA). In addition to the cuts and layoffs 

summarized within the General Fund, the City faces the likely potential of more General Fund 

reductions by the State eliminating or depleting the City’s RDA. The State Governor continued to 

propose in his May Revise Budget Report that the State’s legislature should eliminate all 

Redevelopment Agencies to provide a projected $1.7 Billion towards the State’s $9.6 Billion 

deficit. The State Controller has added considerable pressure by stating he will stop paying State 

Legislator’s for each day they don’t adopt a balanced State Budget after June 15, 2011. 

There have been several bills presented in the State legislature that will either eliminate the RDA 

or put very strong limitations on how RDA funds could be used. Staff feels that even if RDA’s are 

not eliminated, it is highly likely their cash and revenue streams will be diverted to the State. In 

2009, all the State RDA’s were mandated to remit over 2-years a total of $1.7 Billion (the same 

amount demanded now). From those 2009 actions, the City lost a combined $3.1 Million that 

would have otherwise been used for economic development and other projects. 

The General Fund could lose an additional $395,469 in cost allocations and specialized services 

for the RDA project area and the City could lose $1,090,684 in RDA operations (including the 

$395,469) and several million annually in available project resources. Exhibit 8 below lists the 

potential losses to the General Fund ($395,469) and the operating costs of the RDA that are in 

jeopardy from State action. 

Redevelopment Agency Operations 

Exhibit 8 

Amount 

Staffing $ 338,615 

Operations 752,069 

Direct RDA 2011-2012 Budget $ 1,090,684 

General Fund support (subset of operations) 

Amount 

Code Enforcement & Planning $ 79,365 

Downtown Promotions & Events 44,473 

Specific Financial Accounting & Reporting 41,085 

Cost allocation/Overhead 230,546 

Total FY 2011-2012 GF Allocation $ 395,469 

In addition to the costs in Exhibit 8, the RDA’s elimination would also eliminate the RDA’s 

Affordable and Low-Income housing programs. The State is likely to transfer control of affordable 

housing decisions to a joint county-wide agency (like the Santa Cruz County Housing Authority). 

Staff have prepared several alternative reduction scenarios and will present those to Council if 

the State of California passes legislation to eliminate or deplete the RDA’s resources. 


Pimentel 6/9/2011 4:26:10 PM 


Five-year Capital Improvement Plan 

The Capital Improvements Program (CIP) is a 5-year plan that focuses on both the short term 

and long-range plan for acquisition, improvement and/or renovation of City assets. The CIP is a 

dynamic plan that is reviewed and updated annually. Projects are rated in the following 

classifications: Preserve Life, Safety or Investment (1A), Urgent (1B), Adding Value (2), and Not 

Recommended (3). The first year of the five-year CIP is incorporated within the budget 

document, and will be appropriated accordingly. The remaining four years function as a project 

planning and budgeting tool. Only those projects that exceed $5,000 are included in this plan. 

The program document reviews each new proposed public improvement project and lists the 

remaining capital maintenance, equipment or vehicle projects. As required by the Charter, this 

multi-year plan was certified by the City of Watsonville Planning Commission that the 

improvement projects are in compliance with the General Plan. Exhibit 9 summarizes the 

allocation of projects by fund for the next two fiscal years. 

Exhibit 9 


Pimentel 6/9/2011 4:26:10 PM 


FY 2011/12 FY 2012/13 Total 

General Fund $ - $ - $ - 

Special Revenue Funds 

RDA $ 67,583 $ 105,917 $ 173,500 

Relocation Revolving Fund $ 95,000 $ - 95,000 

Library $ 161,583 $ 264,917 426,500 

Parks Development Fund $ 662,000 $ 1,497,000 2,159,000 

Impact Fees $ 703,610 $ 1,537,610 2,241,220 

Gas Tax $ 2,697,500 $ 3,522,500 6,220,000 

Parking Garage Fund $ 15,000 $ 15,000 30,000 

Asset Forfeiture $ 155,000 $ 180,000 335,000 

Total Special Revenue Funds $ 4,557,277 $ 7,122,943 $ 11,680,220 

Proprietary Funds 

Sewer $ 1,307,917 $ 3,577,250 $ 4,885,167 

Water $ 4,815,917 $ 15,609,250 20,425,167 

Solid Waste $ 1,114,917 $ 1,944,250 3,059,167 

Airport $ 242,000 $ 242,000 

Internal Service Fund $ 84,000 $ 110,000 194,000 

Total Proprietary Funds $ 7,564,750 $ 21,482,750 $ 28,563,500 

TOTAL ALL FUNDS $ 12,122,027 $ 28,605,693 $ 40,243,720 

Note that for another year, no General Fund Capital projects are recommended, although staff 

would have requested up to $754k were funds available. Staff continues to defer replacement of 

major equipment, vehicles and facility repairs through increases in minor maintenance, reduced 

use or increasing the prior useful life standards. However, if a replacement becomes urgent, staff 

will develop options for the City Council to approve emergency appropriations for capital 

replacement or repairs.

Exhibit 10 below summarizes the top 10 proposed projects for the next Fiscal Year. See the 

attached listing for the complete project list. 

Top 10 Proposed Projects for FY 2011/12 

Exhibit 10 

Dept-Fund Rate Project Description 

PW-305 1b 

Freedom Blvd 

Reconstruction Ph 1 

Sewer-710 2 

Manana Ln & Easements Replace 3900 LF of 15" sewer from 

Sanitary Sewer 

easement along creek 

Water-720 2 

Well 4A Design & 

Design & Construct Well 4A Including 

Construction 

Pump Station & Controls 

Water-720 2 Harkin Slough Prv Project 

Install pipeline across bridge and 

install Zone 2 To 1 Prv 

Water-720 1a 

Freedom Blvd. Water Main Replace 4,340 LF of old cast iron 

Replacement 

pipes with new 10" Ductile Iron Pipe 

Water-720 1b 

Zone 1 Enhancement Replace Well Motors, Pumps, and 

Project 

install Stand-By Generator and Vfd 

Sewer-710 2 Pajaro River Care Project 

Satisfies conditional permit for 

Watsonville Area Recycling Plant 

Sewer-710 1a 

Freedom Blvd. Water Main Replacement of 2000 LF 6" sewer 

Replacement 

from Buena Vista Dr. to 200 LF past 

Water-720 2 

Water Main Replacement Construct new water mains including 

for PW street projects services to coincide with street 

Water-720 2 Flexnet System 

Install 1,200 new meters and flexnet 

transmitters 

Of particular community interest is the Freedom Blvd road reconstruction project contained within 

the 5-year CIP plan that intends to reconstruct most of the roadway from the North-West City 

limits for several miles to Callaghan park. In total, $6.6 Million is estimated to be allocated for this 

project using Gas Tax funds. However, due to funding limitations, the project is anticipated to be 

done in phases throughout this 5-year plan. The City will also be strategically coordinating 

underground utility upgrades prior to the reconstruction. The City has applied and will continue to 

seek out Federal and State grant opportunities to move up the construction schedule for this 

primary transportation corridor. 

As mentioned previously in this report, the Capital Projects within most of the funds result in net 

operating deficits as shown in Exhibit 11. Staff will continue to monitor grant awards and cash 

balances before proceeding with many of the projects. 


Proposed Operating Budget: Consolidated Fund Summary 

(amounts shown in millions) 

General Special Debt Enterprise Internal 

Fund Revenue Service Funds Service 

FY 2011-2012 

Net Operations $ - $ 2.0 $ 2.4 $ 2.8 0.1 

Total Net Operations $ (0.2) $ (13.4) $ 2.4 $ (43.5) $ (0.3) $ (55.0) 


Pimentel 6/9/2011 4:26:10 PM 


Project 

Manager 

Total All 

Funds 

Estimated 

Cost 

High St to Broadis Street Fontes $ 1,600,000 

Swain 1,500,000 

Swain 1,500,000 

Hernandez 550,000 

Swain 550,000 

Hernandez 500,000 

Silviera 424,000 

Swain 400,000 

Swain 400,000 

Wolf 364,000 

FY 2011-2012 Top 10 sub-total $ 7,788,000 

Exhibit 11 

$ $ 7.3 

New Capital - (4.6) - (7.5) (0.1) (12.2) 

Prior Capital in Progress (0.2) (10.8) - (38.8) (0.3) (50.1) 

Total Capital (0.2) (15.4) - (46.3) (0.4) (62.3)

Millions 

The General Fund project is a carryover from the prior year’s General Plan update that was 

funded in February 2011 but whose costs will not occur until FY 2011-2012. The funds are 

currently reserved for this project and therefore do NOT equate to an operating deficit as may be 

shown in the table. 

Most of the Special Revenue fund projects are Gas Tax and Impact Fee roadway projects. 

These projects will not be able to proceed until either grant awards are received or other funding 

sources become available. Impact fees are funded, for example, though development costs. So, 

until development activity resumes, many of the various impact fee projects will be put on hold. 

Within the Enterprise Funds (Utility and Airport), that vast majority of the Capital Projects are 

made up of $31.1 Million in Water projects that are unable to proceed due to inadequate fund 

balances. As the council may recall, even with the 5-year utility rate increase in 2010, the Water 

and Sewer funds will still be unable to adequately fund capital infrastructure projects by the end of 

the 5-year rate cycle (through June 2015). Exhibit 12 is reproduced from the 2010 report and 

projects total net operations of each fund, including planned capital replacement. Only the Solid 

Waste fund was projected to be able to fully fund its annual operating and capital requirements by 

2014/15. Again, many of Utility and Airport projects will be held until funding is available 

(including $9.2 Million in Airport projects that are awaiting funding by the FAA). 

Exhibit 12 

1.0 

0.5 

Projected Total Operations 

(includes Capital and rate increase) 

Solid 

Waste 

0.0 

-0.5 

Water 

Sewer 

-1.0 

-1.5 

FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 

. 


Pimentel 6/9/2011 4:26:10 PM 


BUDGETARY ACTIONS 

Utility Fund payment for use of City’s land. A major change for the General Fund is the 

replacement of the General Fund’s “Franchise Fee” revenue with a new revenue stream from the 

Utility Funds for use of City land. This action was first approved as part of the 2010-2011 Midyear 

Finance Report on February 22, 2011. As part of a completed, multi-year operational review 

to adopt the 5-year rate plan in 2010, city staff found that many of the City-owned properties were 

subsidizing utility fund operations that, by design, are intended to be self-supporting and 

considered to be an arms-length partner. The review considered 41 sites (38 parcels) used by 

the funds and found that should the City follow comparable lease rates for these types of 

properties, it could levy a rate as high as $137,312 per month. Given potential for commercial 

real estate market instability, staff are proposing to discount the recommended rate by 25% to 

arrive at a payment, indexed to the City’s normal CPI formula, equivalent to $103,000 per month 

(to be allocated to each fund based on ratio of property used). This lease will entirely replace the 

previous Franchise Fee charge between the City and its utility funds (annual amount of $839,000 

or translated to $70,000 per month that will no longer apply). 

General Fund 8% property management rate. The City will be establishing a property 

management rate of 8% for the City to administer various property use agreements between the 

City’s funds and third parties. For example, the City has performed these services on behalf of 

the Airport for years without additional compensation. In the last several years, various other 

property use agreements and their revenue streams were transferred to the Airport but continued 

to be administered by the City (lease administration including external reporting, monthly billing, 

lease monitoring and collecting payments). These additional services are not included in the 

base cost allocation formula that capture more generic services like payroll, personnel 

management, accounts payable, etc. 

Increase all Airport Hanger rates by 5% beyond CPI. Given the high demand for hangars at the 

Watsonville Airport and the disparity between comparable hangar rates, staff recommends 

increasing hangar rates beyond the annual CPI by another 5%. This would bring the Watsonville 

Airport rates above Marina and Salinas and about 23% lower than Hollister and 33% lower than 

Monterey Peninsula Airport. A summary of 2010/11 local and other comparable regional hangar 

rates are shown in Exhibit 9 below. 

Exhibit 9 

Under $300 $300-$400 $400-500 Over $500 

Watsonville (2) [$253] Monterey [$337] Paso Robles [$500] San Carlos [$639] 

Marina [$245] Hollister [$312] Half Moon Bay [$425] 

Watsonville (1) [$241] 

Salinas [$233] 

(1)Watsonville’s current 2010-2011 rate 

(2) Watsonville’s Proposed rate with a 5% increase and before CPI adjustment 


Pimentel 6/9/2011 4:26:10 PM 


Reductions to the annual CPI increase. Staff recommend to reduce the City’s annual Consumer 

Price Index (CPI) rounding methodology for all non-Utility (Water, Sewer & Solid Waste) fees that 

are under $5 to round up to the next 5-cent increment rather than the next whole dollar. In 

addition, staff recommend to reduce the photocopy fee to a flat $0.25 per page and exempt it to 

annual CPI changes. 

Adopt the FY 2011-2012 Strategic Plan. This item is detailed in the companion staff report to the 

City Council’s budget adoption report. 

Reaffirm the City’s option to hire hourly firefighters. During the mid-year financial report, the City 

Council appropriated $50,000 towards the hiring of hourly firefighters to reduce overtime rates. 

Once hired, they would be used in an on-call basis to fill shift vacancies at a regular hourly rate 

for current fire personnel who may be on leave (sick, vacation, light duty or other). Currently, 

when staffing falls below 9, the City must call back to duty an off-duty, full-time fire personnel to 

fill that shift on overtime (up to 24 hours per shift). The firefighter’s costs are much lower as 

these positions are exempt from CalPERS pension benefits and would be paid straight time. 

Adopt the GASB 54 Fund Balance policy. A technical accounting change will come from the 

Government Accounting Standards Board (GASB) Statement Number 54. It requires all City 

Governments to adopt a policy creating various levels of Fund Balance reservations and 

designations within the Fund Balance section of the City’s Comprehensive Annual Financial 

Report’s Balance Sheet. Currently fund balance is classified as “reserved” or “unreserved.” 

Unreserved fund balance may be further allocated into designated and undesignated. GASB 54 

will change how fund balance is reported. The hierarchy classifications is as follows: 

Non-spendable Fund balance includes amounts not in spendable form, such as 

inventory, or amounts required to be maintained intact legally or contractually (e,g, 

inventory, pre-paid items, principal endowment). 

Restricted Fund Balance includes amounts constrained for a specific purpose by citizens 

or other external parties (e.g. Charter Reserve, Insurance Reserve, Debt Service, Capital 

Projects, State and Federal Grants). 

Committed Fund Balance includes amounts constrained for a specific purpose by the 

City Council, our highest level of decision making authority (e.g. Major Maintenance, 

Capital Replacement Reserve, Emergency Reserve). 

Assigned Fund Balance includes general fund amounts constrained for a specific 

purpose by a governing board or by an official that has been delegated authority to assign 

amounts. 

Unassigned Fund Balance is the residual classification for the general fund. 

“Total Annual Appropriations”. In 1979 and 1990, California Voters passed Proposition 4 and 111 

respectively setting the process for limiting the amount of appropriations a State and Local 

government agency could expend during any one year. Each year, the City must adopt a 

resolution setting the subsequent year’s appropriation limit and ensure that the City’s 

appropriations are below this limit. The appropriations limit for any fiscal year is equal to the 

previous year’s limit, adjusted for the annual percentage change in population and the annual 


Pimentel 6/9/2011 4:26:10 PM 


percentage change in either of two allowed demographic factors; (1) California per-capita 

personal income or (2) growth in non-residential property assessed valuation. An agency can 

alternate between either of these two later factors year to year. The table below contains the 

current and last 4 annual calculations 

The City continues to be far below the legal limit of appropriations and is in full compliance with 

this State statute, as demonstrated in the “Remaining Appropriation Capacity” line item for Fiscal 

Year 2011-2012 within Exhibit 10 below. 


5-year Gann/Proposition 4 Calculation 

Exhibit 9 

Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 

Beginning Appropriation Limit $ 100,052,960 $ 107,055,841 $ 112,619,878 $ 113,714,735 $ 112,233,876 

Growth rates: 

Non-resident, New Construction Assessment 

Growth 

not used not used not used not used not used 

Per Capita Personal Income 4.420% 4.290% 0.620% -2.540% 2.510% 

Change in Population 2.470% 0.870% 0.350% 1.270% -1.990% 

Total Growth Rate 1.06999174 1.05197323 1.00972170 0.98697742 1.00470051 

Ending Appropriation Limit $ 107,055,841 $ 112,619,878 $ 113,714,735 $ 112,233,876 $ 112,761,432 

City Appropriations subject to Limit 

Proposed General Fund Appropriations $ 36,653,867 $ 37,254,188 $ 32,677,473 $ 32,530,175 $ 32,937,470 

Less Non-tax General Fund Revenues: 

Transfers In (non-tax) (552,000) (660,000) (150,000) (150,000) (129,700) 

Use of Money and Property (1,316,500) (869,000) (873,000) (717,000) (1,790,400) 

Fees (8,425,732) (8,692,788) (9,464,473) (10,296,956) (9,970,469) 

In-lieu Charges (757,000) (779,800) (805,000) (841,000) - 

Other non-tax revenue - (993,100) - - - 

City Appropriations subject to limit 25,602,635 25,259,500 21,385,000 20,525,219 21,046,901 

Remaining Appropriation Capacity $ 81,453,206 $ 87,360,378 $ 92,329,735 $ 91,708,657 $ 91,714,531 

CalPERS amendments. As part of employee concessions, employees agreed to pickup 

additional levels of pension costs. Accordingly, the State requires the City Council to adopt 

resolutions listing the specific changes to Government Code Section 20691 and electing to pay 

employer paid member contributions to CalPERS. These resolutions apply to the non-safety 

groups including the City Clerk, City Manager and all employees in the Confidential Unit, 

Management Unit, Mid-Management Unit, and Service Employees International Union (SEIU)- 

Local 521 Clerical Technical. The manner in which public safety employees are paying more of 

their pension costs does not require the changes to be confirmed by a resolution, but merely 

within the MOU adopted by the City Council (consent item for June 14 th for Police and June 28 th 

for Fire). 


Pimentel 6/9/2011 4:26:10 PM 


Internal loan to “refinance” General Fund obligations to CalPERS. This item is detailed in the 

companion staff report to the City Council’s budget adoption report. 

Instruct the County of Santa Cruz to levy and collect property tax. As provided by the City’s 

Charter, annually the City must set the levy rate and instruct the County of Santa Cruz to levy, 

collect and remit to the Retirement Fund proceeds to support the General Fund for its 

employment retirement costs. The Charter states: 

There shall be levied and collected…(2) a tax sufficient to meet all obligations of the 

City to the State Employees' Retirement System, or other system for the retirement of 

City employees, due and unpaid or to become due during the ensuing fiscal year 

(Section 1122, b2). 

In the November 2006 general election, the voters of the City of Watsonville placed a cap on the 

annual levy of 0.077% (or $77 per $100,000 in assessed valuation) for the fiscal year beginning 

on July 1, 2007. This was done in tandem with voter approval for a ¼-cent increase in the City’s 

Sales Tax rate in which the intent was to not impact the General Fund’s ability to provide critical 

public services. The annual levy rate is projected to provide 45% of the total General Fund 

retirement costs and is therefore in compliance with the City Charter by not setting the levy at a 

rate that exceeds the anticipated costs. 

Redevelopment Agency; Low & Moderate Income Housing. Annually the Redevelopment 

Agency must adopt recurring resolutions that support the use of Redevelopment funds towards 

Low and Moderate Housing projects within the City. 

The first of the resolutions finds that the Redevelopment Agency’s use of funds for planning and 

general administrative costs is necessary as these planning and administration services are spent 

for the purpose to produce, improve and/or preserve low and moderate income housing. 

The second of the resolutions is a joint resolution between the City and Redevelopment Agency 

and finds that the support of the Redevelopment Agency’s use of funds outside of its boundary for 

Low and Moderate income projects benefits the Redevelopment Agency. The Redevelopment 

Agency project area does not have sufficient capacity for needed additional Low and Moderate 

Housing and the Watsonville VISTA 2030 plan requires affordable housing throughout the 

community. 


Pimentel 6/9/2011 4:26:10 PM 



The proposed budget plan adheres to the principals used to develop the 2011-2012 Strategic 

Plan, beginning with the emphasis to avoid layoffs. At this point, only 5 positions are scheduled 

for layoff. The remainder of the 2011-2012 Budget is funded in a manner to carry out the 

priorities set by the City Council as follows: 

o Sustainable Economic Development 

o Community Resources 


o City Image 

o Safe & Healthy Community 


The Proposed 2011-2012 Budget balances the General Fund’s $1.93 Million operating deficit. 

The General Fund still faces a threat of additional lost funding that could reach $700,000 

depending on the actions and reductions that arise out of the State’s solutions to balance their 

$9.6 Billion deficit. In addition, the City’s RDA faces either possible elimination or loss of revenue 

and current resources from the same State actions. Staff will provide the City Council with 

updates and ultimately a reduction plan depending on the impacts from the State’s budget 

actions. 

ALTERNATIVES: 

The City’s Charter requires a budget to be adopted prior to July 1 st (the start of the new Fiscal 

Year). The City Council can, within limitations, reallocate resources between certain funds or for 

different programs or operations within a fund. Staff have already received City Council and RDA 

feedback and direction towards the development of the FY 2011-2012 budget starting in February 

2011 through the last budget study session on June 7 th . Any changes at this time are 

recommended only for the 5-year Capital Improvement Plan. All prior components of the budget 

have been reviewed as part of the prior public budget study sessions. 

ATTACHMENTS: 

1) 5 Year CIP project listing 

2) General Fund Revenue and Expenditure summary 

cc: 

City Attorney 


Pimentel 6/9/2011 4:26:10 PM 


Attachment 1 

Capital Improvement Project Plan: FY 2011/12 through 2015/16 

Dept. FY Fund Ranking Description Type Total Cost 

GENERAL FUND - No General Fund Projects or Equipment, Building and Maintenance items were Appropriated in 2011/12 

Finance 12 150 1a City-wide Management and Financial Application C Pimentel 170,000 

Various 12 150 1a Equipment, Building, Maintenance - See Equipment Detail E Various 195,083 

Various 12 150 1b Equipment, Building, Maintenance - See Equipment Detail E Various 96,200 

Various 12 150 2 Equipment, Building, Maintenance - See Equipment Detail E Various 292,700 


Parks 12 150 3 Ramsay Park Renovation P Espinoza 5,100,000 

Projects Not being Recommended not included in this total 

GENERAL FUND TOTAL FY 11/12 753,983 




GENERAL FUND TOTAL FY 12/13 148,333 

SPECIAL REVENUE FUNDS: 



RDA 12 201 1a Mello Center JPA Facility Improvements P Davidosn 20,000 


REVEVELOPMENT FUND TOTAL 11/12 67,583 



REVEVELOPMENT FUND TOTAL 12/13 38,333 

CDD 12 215 1b Relocation Revolving Funds P Tavantzsis 50,000 

RELOCATION REVOLVING FUND TOTAL FY 11/12 50,000 

CDD 13 215 1b Relocation Revolving Funds P Tavantzsis 50,000 

RELOCATION REVOLVING FUND TOTAL FY 12/13 50,000 




LIBRAY FUND TOTAL 11/12 161,583 




LIBRAY FUND TOTAL 12/13 103,333 



Parks 12 281 2 Franich Park Phase II-B (2) P Espinoza 300,000 

Parks 12 281 1a Crestview Park Safety Improvements P Espinoza 25,000 

PARK IMPACT FEE FUND TOTAL FY 11/12 662,000 



Parks 13 281 2 Franich Park Phase II-B (12/13) P Espinoza 300,000 

Parks 13 281 1b Relocation of Pinto Lake Playground Equipment P Espinoza 450,000 


Attachment 1 



PARK IMPACT FEE FUND TOTAL FY 12/13 835,000 



Parks 15 281 Franich Park Phase II-B P Espinoza 1,335,500 

PARK IMPACT FEE FUND TOTAL FUTURE YEARS 1,860,500 

PW 12 305 1b Freedom Blvd Reconstruction Ph 1 P Fontes 1,600,000 

PW 12 305 1b Annual Sidewalk Repair Program P Dow 100,000 

PW 12 305 1b 2011 Citywide Curb Ramp Project P Martinez 125,000 

PW 12 305 1b Special Inspection and Testing Services, materials P Fontes 25,000 

PW 12 305 2 Main Freedom Roundabout PS&E P Fontes 100,000 

PW 12 305 1a Battery backup replacement P Martinez 52,500 

PW 12 305 1b City Signal Upgrades (HSIP) P Rodriguez 340,000 

PW 12 305 1a Pedestrian Xing Enhancements P Rodriguez 175,000 

PW 12 305 1a Green Valley Rd Retaining Wall P Fontes 180,000 

GAS TAX FUND TOTAL FY 11/12 2,697,500 

PW 13 305 1b Annual Sidewalk Repair Program (12/13) P Dow 100,000 

PW 13 305 1b Special Inspection and Testing Services, soil P Fontes 25,000 

PW 13 305 2 2013 Street Maintenance P Theriot 700,000 

GAS TAX FUND TOTAL FY 12/13 825,000 

PW 14 305 Downtown Pedestrian Improvements - West Lake Street P Rodriguez 200,000 

PW 14 305 Downtown Pedestrian Improvements - East Fifth Street P Rodriguez 250,000 

PW 14 305 Downtown Pedestrian Improvements - 500 Block of Main St. P Rodriguez 400,000 

PW 14 305 Main Freedom Roundabout Improvements P Fontes 750,000 

PW 15 305 2015 Street Maintenance P Theriot 700,000 

PW 16 305 Freedom Blvd Reconstruction Phase 3 P Fontes 1,500,000 

PW 16 305 Freedom Blvd Reconstruction P Fontes 1,500,000 

PW 16 305 Freedom Blvd Improvements P Fontes 2,000,000 

PW 16 305 Ohlone Parkway Phase 2 P Theriot 500,000 

GAS TAX FUND TOTAL FUTURE YEARS 7,800,000 


PARKING GRAGE FUND TOTAL FY 11/12 15,000 

PW 12 340 1a Neighborhood Traffic Plan P Rodriguez 5,000 

PW 12 340 1a Bicycle Plan P Rodriguez 5,000 

CITY WIDE IMPACT FEE FUND TOTAL FY 11/12 10,000 

PW 13 340 1a Neighborhood Traffic Plan (12/13) P Rodriguez 5,000 

PW 13 340 1a Bicycle Plan (12/13) P Rodriguez 5,000 

CITY WIDE IMPACT FEE FUND TOTAL FY 12/13 10,000 

PW 15 340 Airport Blvd. Improvements P Rodriguez 950,000 

CITY WIDE IMPACT FEE FUND TOTAL FUTURE YEARS 950,000 

PW 12 342 2 Pennsylvania/Clifford Operational Improvements P Rodriguez 250,000 

CRESTVIEW FUND TOTAL FY 11/12 250,000 

PW 13 344 3 Highway 1/Harkins Slough Interchange/Design P Rodriguez 750,000 

EAST HIGHWAY 1 AREA FUND TOTAL FY 12/13 750,000 


Attachment 1 



PW 15 344 Highway 1/Harkins Slough Interchange/Construction P Rodriguez 8,100,000 

EAST HIGHWAY 1 AREA TOTAL FUTURE YEARS 8,100,000 




TOTAL FIRE IMPACT FUND TOTAL FY 11/12 186,610 


TOTAL FIRE IMPACT FUND TOTAL FY 12/13 25,000 




TOTAL PUBLIC FACILITIES IMPACT FUND TOTAL FY 11/12 257,000 


TOTAL PUBLIC FACILITIES IMPACT FUND TOTAL FY 11/12 49,000 



ASSET SEIZURE FUND TOTAL FY 11/12 155,000 


ASSET SEIZURE FUND TOTAL FY 12/13 25,000 

ENTERPRISE FUNDS: 





Sewer 12 710 2 Pajaro River Care Project P Silviera 424,000 

PW 12 710,720 1b Miscellaneous utility repair/replacement for roadway P Theriot 100,000 

FUND TOTAL FY 11/12 1,307,916 




Sewer 13 710 2 Manana Ln & Easements Sanitary Sewer Replace. P Swain 1,500,000 

Sewer 13 710 1a Freedom Blvd. Water Main Replacement P Swain 400,000 

PW 13 710,720 1b Misc. utility repair/replacement for roadway (12/13) P Theriot 100,000 

SEWER FUND TOTAL FY 12/13 2,269,333 




Water / WW 14 720 / 710 Maintenance Shop P Silviera 750,000 

SEWER FUND TOTAL FUTURE YEARS 1,300,000 





Attachment 1 





Airport 12 720 Prop 784 Urban Greening Planning Grant P Geyer 250,000 

Water 12 720 1b Mxu replacement units P Wolf 200,000 

Water 12 720 2 Flexnet System P Wolf 364,000 

Water 12 720 2 Rainbow Lane Water Main Replacement P Guerrero 100,000 

Water 12 720 2 Silver Leaf Dr. Main Replacement P Guerrero 70,000 

Water 12 720 2 Martinelli Street Water Main Replacement P Guerrero 100,000 

Water 12 720 2 Eureka Canyon Creek Scour Feature P Hernandez 50,000 

Water 12 720 2 Telemetering Technician Service Van P Hernandez 45,000 

Water 12 720 2 Scada Upgrades P Hernandez 100,000 

Water 12 720 2 Harkin Slough Prv Project P Hernandez 550,000 

Water 12 720 1b Zone 1 Enhancement Project P Hernandez 250,000 

Water 12 720 2 Hames Pump Station P Hernandez 30,000 

Water 12 720 2 Watsonville Square Public Water Main P Guerrero 55,000 

Water 12 720 2 Water Main Replacement for PW street projects P Swain 200,000 

Water 12 720 2 Well 4A Design & Construction P Swain 1,500,000 

Water 12 720 2 Slough and Watershed Maintenance 11-12 P Johnson 75,000 

PW 12 710,720 1b Miscellaneous utility repair/replacement for roadway P Theriot 100,000 

WATER FUND TOTAL FY 11/12 4,815,916 



Various 13 720 2 Equipment, Building, Maintenance - See Equipment Detail E Various 1,385,000 


Water 13 720 1a Freedom Blvd. Water Main Replacement P Swain 550,000 

Water 13 720 2 Upgrade Corralitos Water Treatment Plant P Palmisano 6,000,000 

Water 13 720 2 Manabe Wetland Restoration Phase 3 P Palmisano 800,000 

Water 13 720 2 Water Main Replacement For Pw Street Projects (12/13) P Swain 200,000 

Water 13 720 2 Well 9A Design & Construction P Swain 1,500,000 

Water 13 720 2 Mxu replacement units P Wolf 200,000 

PW 13 710,720 1b Misc. utility repair/replacement for roadway (12/13) P Theriot 100,000 

WATER FUND TOTAL FY 12/13 10,793,333 

Various 14 720 Equipment, Building, Maintenance - See Equipment Detail E Various 350,000 


Water 14 720 Freedom Reservoir Modifications P Hernandez 500,000 

Water 14 720 Water System Security Upgrades P Swain 300,000 

Water 14 720 Browns Valley Raw Water Line P Swain 300,000 

Water 14 720 Zone 2 Auxiliary Reservoir P Swain 1,300,000 

Water 15 720 Replace well #10 Building Enclosure P Hernandez 275,000 

Water 15 720 Replace well #8 Building Enclosure P Hernandez 275,000 

Water / WW 14 720 / 710 Maintenance Shop P Silviera 750,000 

WATER FUND TOTAL FUTURE YEARS 3,700,000 

Airport 12 730 1a Replace Fuel dispensing system P French 100,000 



AIRPORT FUND TOTAL FY 11/12 242,000 






Attachment 1 




SW 12 740 1b Landfill Surveying P Mitchell 50,000 

SOLID WASTE FUND TOTAL FY 11/12 1,114,916 




SOLID WASTE FUND TOTAL FY 12/13 829,333 

INTERNAL SERVICE FUNDS: 


COMPUTER REPLACEMENT FUND TOTAL FY 11/12 58,000 


RISK MANAGEMENT FUND TOTAL FY 11/12 26,000 


RISK MANAGEMENT FUND TOTAL FY 12/13 26,000 


GENERAL FUND SUMMARY 

Attachment 2 

General Fund 2009/10 2010/11 2010/11 2011/12 2012/13 

Actual Budget Projected Budget Budget 

A/C # REVENUES - DESCRIPTION $ $ $ $ $ 

275 5011 PERSONAL PROPERTY TAXES 133,453 170,000 140,000 142,000 143,000 

275 5014 SUPPLEMENTAL PROPERTY TAXES 70,051 10,000 75,000 76,000 76,500 

275 5015 COUNTY - RDA PASS THROUGH 7,928 - - - - 

275 5016 REAL ESTATE TAXES 4,435,895 4,324,000 4,339,000 4,656,000 4,702,560 

275 5020 HOUSING AUTH - PILOT PROGRAM 12,381 15,000 - - - 

275 5026 HOPTR - CITY 38,276 29,000 29,000 29,000 29,000 

275 5030 AIRCRAFT TAX FROM COUNTY 51,728 82,000 51,000 51,000 51,000 

275 5031 DEED TRANSFER TAX - - - - 35,000 

PROPERTY TAXES 4,749,712 4,630,000 4,634,000 4,954,000 5,037,060 

275 5012 PROPERTY TAX IN LIEU OF MVF 3,449,001 3,317,000 3,362,000 3,395,000 3,400,000 

275 5061 SALES TAX - GENERAL 4,414,473 4,019,000 4,099,000 4,548,491 4,575,000 

275 5067 SPECIAL SALES TAX 1,132,981 1,102,000 1,132,981 1,244,368 1,250,000 

275 5063 SALES TAX - PROP 172 178,045 133,000 228,000 230,000 232,000 

275 5066 PROPERTY TAX IN LIEU OF SALES TAX 1,182,164 1,158,000 984,000 1,059,226 1,060,000 

275 5081 HOTEL ROOM TAX 616,760 488,000 526,000 535,000 535,000 

275 5082 UTILITY USERS TAX 2,711,359 2,887,000 2,890,000 2,953,000 2,953,000 

275 5511 MOTOR VEHICLE IN LIEU TAX 236,671 192,000 315,000 319,000 319,000 

OTHER TAXES 13,921,454 13,296,000 13,536,981 14,284,085 14,324,000 

275 5113 FRANCHISE FEE - CABLE TV 122,535 76,000 174,000 176,000 179,000 

275 5145 FRANCHISE FEE - P.G.& E. 278,097 260,000 259,000 262,000 267,000 

FRANCHISE FEES 400,632 336,000 438,000 438,000 446,000 

275 5111 BUSINESS LICENSES 321,954 353,000 328,000 332,000 332,000 

275 5136 GARAGE SALE PERMIT 15,920 16,000 15,000 15,000 15,000 

275 5139 PARKING PERMITS-CITY WIDE 89,078 111,000 113,000 114,000 114,000 

275 5224 SEISMIC/STRONG MOTION FEES - 00410 762 1,000 1,000 1,000 1,000 

275 5229 PROJECT MANAGEMENT FEES 18,698 37,000 - - - 

275 5245 ADM. FEES/CHARGES -BUS LICENSE 80,200 85,000 67,000 68,000 68,000 

275 5246 COPIES & DOCUMENT PRINTING 4,006 8,000 5,000 5,000 5,000 

275 5308 CARD ROOM FEES 1,200 2,000 1,000 1,000 1,000 

275 5319 CHERRY BLOSSOM SLOUGH MAINT FEE 2,416 2,000 - - - 

275 5382 TRAFFIC FINES 16,381 18,000 50,000 50,000 50,000 

275 5388 CODE VIOLATION PENALTIES 400 1,000 - - - 

GENERAL FEES 551,015 634,000 580,000 586,000 586,000 

275 5411 INTEREST EARNINGS 30,147 20,000 20,000 20,400 20,800 

275 5419 LOAN FEES REVENUE 107,409 162,000 110,000 114,000 114,000 

275 5431 GTE MOBIL NET 14,924 14,000 14,000 14,000 14,000 

275 5432 SPRINT SPECTRUM L.P. 10,833 10,000 10,000 10,000 10,000 

275 5439 UTILITY FUNDS LAND LEASE - 200,000 200,000 1,236,000 1,300,000 

275 5448 PACIFIC BELL MOBILE 8,918 8,000 8,000 8,000 8,000 

275 5455 LEASE REVENUE 35,026 38,000 39,000 - - 

275 5461 PINTO LAKE CONCESSION 49,264 18,000 61,000 61,000 61,000 

275 5462 GROUND LEASE-MAIN/MAPLE PROP 6,630 6,000 6,000 6,000 6,000 

275 5463 RODRIGUEZ STREET RENTS 19,993 24,000 - - - 

275 5469 CIVIC CENTER LEASE REVENUE 36,168 137,000 31,000 31,000 31,000 

275 5473 COMMUNICATIONS CTR OFFICE RENT 15,276 15,000 15,000 15,000 15,000 

275 5475 CAL TUBE BLDG RENT 210,111 217,000 224,000 227,000 227,000 

275 5485 SOCCER ARENA RENTS 35,746 40,000 39,000 39,000 39,000 

275 5486 FIRE STATION 2-RADIO ANTENNA TOWER 4,586 8,000 9,000 9,000 9,000 

USE OF MONEY AND PROPERTY 585,031 917,000 786,000 1,790,400 1,854,800 

275 5388 STATE MANDATED PROGRAMS 5,976 99,300 29,000 29,000 29,000 



Attachment 2 

A/C # 

General Fund 2009/10 2010/11 2010/11 2011/12 2012/13 


REVENUES - DESCRIPTION $ $ $ $ $ 

275 5521 OTHER STATE AID - 16,000 2,000 2,000 2,000 

275 5523 RENT STABILIZATION REVENUE 7,561 9,000 6,000 6,000 6,000 

275 5830 A/R MISCELLANEOUS RECEIPTS 77 1,000 - - - 

275 5863 OTHER REVENUE - GEN FUND MISC 48,580 71,000 72,000 73,000 73,000 

275 5897 SALE OF FIXED ASSETS/PROPERTY 1,001,695 - 1,000 1,000 1,000 

280 6501 CODE FINES-RELOCATION FUND - 21,000 - - - 

OTHER REVENUES 1,063,889 217,300 110,000 111,000 111,000 

275 6511 OPERATING TRANSFERS IN 2,634,000 2,749,219 3,298,000 2,199,724 2,199,724 

TOTAL OPERATING TRANSFERS 2,634,000 2,749,219 3,298,000 2,199,724 2,199,724 

110 5311 COST ALLOCATION REIMBURSEMENT 40,777 41,593 41,593 39,070 39,852 



GENERAL GOVERNMENT 593,701 606,575 606,575 621,907 453,553 



CITY CLERK/CITY ATTORNEY 118,843 119,650 120,650 119,378 121,765 

230 5288 LEASE MANAGEMENT FEE - - - 103,000 103,000 


230 5419 LOAN FEES REVENUE 125,569 88,000 169,000 169,000 169,000 

230 5895 OTHER REVENUE 11,369 - 5,000 - - 


240 5260 CENTRAL STORES CHARGES 7,938 32,000 7,000 32,000 32,000 



251 5262 GIS CHARGES - OUTSIDE 1,434 4,400 1,000 1,000 1,000 


FINANCE 1,772,359 1,782,970 1,828,455 1,918,300 2,081,451 

312 5578 CMAQ GRANT 35,726 23,000 23,000 23,000 23,000 

315 5131 PLANNING PERMITS 150,918 127,000 86,000 87,000 88,000 

315 5202 BUILDING PLAN CHECK 57,568 70,000 76,000 77,000 78,000 

315 5203 ENGINEERING PLAN CHECK FEES 20,750 23,000 41,000 41,000 41,000 

315 5206 SUBDIVISION & INSPECTION FEES 23,937 31,000 44,000 44,000 44,000 

315 5211 ENGINEERING PERMIT FEES 17,500 22,000 22,000 22,000 22,000 

315 5212 FIRE PLAN CHECK FEES 7,915 7,000 8,000 8,000 8,000 

315 5219 CODE VIOLATION FEES 127,221 54,000 56,000 56,000 57,000 

315 5221 MECHANICAL PERMIT FEES 5,653 10,000 21,000 21,000 21,000 

315 5225 INVESTIGATION FEES 30,710 27,000 26,000 26,000 26,000 

315 5226 PLANNING PLAN CHECK 10,224 7,000 12,000 12,000 12,000 

315 5234 ENERGY PLAN CHECK FEE 3,147 3,000 4,000 4,000 4,000 

315 5235 ENERGY INSPECTION FEE 3,612 3,000 6,000 6,000 6,000 

315 5239 CBSC STATE FEE 806 1,000 - - - 

315 5240 CBSC ADMINISTRATION STATE FEE 88 - - - - 

315 5241 PLOT PLAN CHECK FEE 406 3,000 - - - 

315 5242 BUILDING PERMIT FEES 162,640 178,000 151,000 153,000 156,000 

315 5243 ELECTRICAL PERMIT FEES 18,999 23,000 20,000 20,000 20,000 

315 5244 PLUMBING PERMIT FEES 10,224 10,000 18,000 18,000 18,000 

315 5286 CODE ENFORCEMENT MATERIAL/LABOR 3,680 7,000 - - - 

315 5287 APPEAL FEES 950 1,000 3,000 3,000 3,000 

315 5895 OTHER REVENUE - CDD 10,150 - - - - 

315 5895 OTHER REVENUE - CDD 00126 - 3,000 8,000 8,000 8,000 

COMMUNITY DEVELOPMENT 702,821 633,000 625,000 629,000 635,000 



Attachment 2 

A/C # 

General Fund 2009/10 2010/11 2010/11 2011/12 2012/13 



409 5273 S.C.A.R.E PROGRAM 84,887 84,682 84,682 84,682 84,682 

409 5390 DUI FEES 4,457 21,000 39,000 21,000 21,000 

409 5853 POST REIMBURSEMENTS 19,822 19,000 43,938 20,000 20,000 

409 5890 JUSTICE ASSISTANCE GRANT - 36,165 36,165 - - 

409 5890 CALGRIP III SAFE - 34,030 34,030 58,119 - 

410 5116 TOBACCO RETAILER LICENSE FEE - - 7,000 15,000 15,000 

410 5255 BOOKING FEE REIMBURSEMENT - 2,000 - - - 

410 5261 POLICE SPECIAL EVENT FEES 15,321 20,000 15,152 15,000 15,000 

410 5268 POLICE RANGE FEES 5,700 5,000 4,000 4,000 4,000 

410 5307 POLICE REPORTS 66,332 60,000 58,000 58,000 58,000 

410 5330 VEHICLE IMPOUND RELEASE FEE 47,527 60,000 45,842 50,000 50,000 

410 5381 COURT FINES 239,133 356,000 225,000 225,000 225,000 

410 5383 PARKING FINES 447,659 310,000 200,000 250,000 250,000 

410 5334 VEHICLE IMP RELEASE -30 DAY HEARING FEE 2,192 6,084 4,292 5,000 5,000 

410 5335 VEHICLE TOWING FEE - 76,300 40,536 42,000 42,000 

410 5386 PARKING TKT FINES - STATE & COUNTY 173,782 120,000 173,300 173,300 173,300 

410 5388 CODE VIOLATION PENALTIES 2,100 - 31,500 31,500 31,500 

410 5616 ORG. CRIMES DRUG ENFORCEMENT 3,326 5,000 5,000 4,000 4,000 

410 5651 MAS PVUSD FEES - (WHS SRO) 97,180 102,599 101,000 95,839 95,839 

410 5890 COP'S HIRING RECOVERY GRT 166,728 - 276,000 338,157 367,972 

410 5890 SSLESF 90,287 100,000 98,000 - - 

410 5890 HOMELAND SECURITY 35,267 25,091 55,691 102,874 - 

410 5890 JAG GRT REVENUE 3,383 - - - - 

410 5890 GRANT REVSCHOOL COMM POLICING - PV HS 97,180 102,599 76,000 95,839 95,839 

410 5890 PROJECT SAFE NEIGHBORHOOD 11,432 - - - - 

410 5890 OTHER REVENUE - POLICE 22,544 - - - - 

410 5890 Cal-GRIP 69,148 107,757 95,000 - - 

410 5890 JUSTICE ASSISSTANCE GRANT - JAG 15,503 100,975 100,975 32,180 - 

410 5890 EDWARD BYRNE MEMORIAL GRANT - 146,887 104,500 134,841 136,871 

410 5893 POLICE PERSONNEL REIMBURSEMENT 22,284 51,000 29,227 15,000 15,000 

410 5895 OTHER REVENUE MISC. 37,237 15,000 26,132 26,000 26,000 

410 5895 OTHER REVENUE - LIVE SCAN 43,199 26,000 41,000 38,000 38,000 

417 5393 REGISTRATION FEES 100 4,000 100 1,500 1,500 

417 5890 SAFE SCHOOLS, HEALTHY ST 7,431 - 40,000 - - 

417 5890 PROJ SAFE NEIGHBORHOODS - 20,000 - - - 

419 5135 ALARM PERMITS 14,147 19,000 20,000 19,000 19,000 

419 5274 FALSE ALARM FEES 10,210 11,000 5,000 8,000 8,000 

419 5890 GRANT PROCEEDS - SSLESF 17,853 - - - - 

419 5890 GRANT REVENUE - SAVE OUR SCHOOLS (SOS) 24,089 - - - - 

419 5890 Cal-GRIP 51,614 92,622 - - - 

419 5890 Cal-GRIP III - SAFE - 68,655 - 234,266 - 

419 5890 2000 LOCAL LAW ENFORCEMENT BLOCK GRANT - - 99,000 - - 

419 5892 EVIDENCE MONEY 310 1,200 - 500 500 

419 5895 OTHER REVENUE - LIVE SCAN 460 20,873 - - - 

419 6501 SALE OF FIXED ASSETS 1,805 11,000 - 500 500 

POLICE 1,951,627 2,241,519 2,215,062 2,199,097 1,803,503 

450 5209 FIRE - BLDG CHECK FEES 11,440 12,000 12,000 12,000 12,000 

450 5213 FIRE INSPECTION FEES 62,040 100,000 60,000 60,000 60,000 

450 5214 FIRE FALSE ALARM FEES - 18,000 - - - 

450 5247 WED ABATEMENT CHARGES - 00411 - 2,000 - - - 

450 5267 PAJARO VALLEY FIRE CONTRACT 96,221 75,000 32,000 32,000 32,000 

450 5321 FIREWORKS FEE 27,345 28,000 55,000 55,000 55,000 

450 5890 GRANT REVENUE - - 3,000 3,000 3,000 

450 5895 OTHER REVENUE - FIRE 129,151 74,000 124,000 125,000 127,000 



Attachment 2 

A/C # 

General Fund 2009/10 2010/11 2010/11 2011/12 2012/13 



450 5895 OTHER REVENUE - FIRE CADETS - - 1,000 - - 

FIRE 326,197 309,000 287,000 287,000 289,000 

685 5850 DONATIONS/SPONSORS 120,163 82,000 120,000 120,000 120,000 

688 5895 OTHER REVENUES - 3,100 - - - 

690 5249 REC USE FEES - ADMIN. 2,972 2,000 4,000 4,000 4,000 

690 5250 REC CLASS FEES 6,496 5,000 9,000 9,000 9,000 

690 5285 CIVIC PLZA COUNCIL CHAMBER FEE 630 - 250 - - 

690 5477 CIVIC CENTER COMMUNITY ROOMS 25,263 45,000 10,000 45,000 45,000 

690 5491 RENTAL - RAMSAY 10,920 9,000 10,000 10,000 10,000 

690 5492 RENTAL - MARINOVICH 10,132 2,000 5,000 5,000 5,000 

690 5493 RENTAL - CALLAGHAN 1,582 9,000 9,000 9,000 9,000 

690 5494 RENTAL - VETS HALL 43,414 37,000 46,000 46,000 46,000 

690 5495 RENTAL - YOUTH CENTER 4,914 3,000 5,000 5,000 5,000 

690 5496 RENTAL - MUZZIO 894 - 1,000 1,000 1,000 

690 5850 REC DONATIONS 700 5,000 - 5,000 5,000 

690 5895 MISC. REC FEES 1,483 5,000 220 - - 

690 5895 P&CS SECURITY GUARD - 68,460 260 68,460 68,460 

690 5895 INSURANCE REVENUE 12,145 15,000 11,000 11,000 1,000 

691 5249 CLASSES AND CAMPS - YOUTH CENTER 1,108 6,000 132 - - 

691 5249 CLASSES AND CAMPS - RAMSAY 13,983 2,000 31,000 31,000 31,000 

691 5249 CLASSES AND CAMPS - MARINOVICH - 1,000 - 1,000 1,000 

691 5249 CLASSES AND CAMPS - CALLAGHAN 12,632 6,000 9,000 9,000 9,000 

691 5253 REC ADULT ACTIVITIES 8,467 8,000 2,000 2,000 2,000 

691 5331 TRIPS & TOURS - YOUTH CENTER 65 6,000 - - - 

691 5331 TRIPS & TOURS - RAMSAY 284 3,000 - - - 

691 5331 TRIPS & TOURS - MARINOVICH 81 750 - - - 

691 5331 TRIPS & TOURS - CALLAGHAN 20 13,125 - - - 

691 5332 SPECIAL EVENTS - YOUTH CENTER 2,505 11,250 2,000 2,000 2,000 

691 5332 SPECIAL EVENTS- RAMSAY - 1,875 - 1,875 1,875 

691 5332 SPECIAL EVENTS - MARINOVICH - 600 - 600 600 

691 5332 SPECIAL EVENTS - CALLAGHAN - 2,250 - 2,250 2,250 

691 5480 RENTAL - COMPUTER CENTER 292 2,000 - 2,000 2,000 

691 5890 GRANT REVENUE - GET OUT AND GET FIL 10,861 - - - - 

691 5890 COMPUTER MEMBERSHIP FEES 3,060 3,000 2,000 2,000 2,000 

691 5895 SPECIAL ACCOUNT - CALLAGHAN 22 2,600 - 2,600 2,600 

691 5895 SPECIAL ACCOUNT - RAMSAY PARK 22 4,900 1,000 4,900 4,900 

691 5895 SPECIAL ACCOUNT - YOUTH CENTER - 8,500 - 8,500 8,500 

691 5895 OTHER REVENUE- RAMSAY PARK FAMILY CTR 997 - 1,000 1,000 1,000 

691 5895 OTHER REVENUE- MARINOVICH COMMUNITY CTR 753 - - - - 

691 5895 OTHER REVENUE-CALLAGHAN CTR-SPECIAL ACCT 164 - - - - 

691 5895 COMPUTER CENTER 1,099 - - - - 

692 5250 YOUTH SPORTS FEES 00162 44,602 42,000 24,000 24,000 24,000 

692 5250 ADULT SPORTS FEES 00163 47,041 49,000 34,000 34,000 34,000 

692 5250 AQUATICS FEES 00164 39,863 30,000 24,000 24,000 24,000 

692 5250 FEMALE SPORTS FEES 00210 13,243 32,000 20,000 20,000 20,000 

692 5315 FIELD RESERVATIONS 00162 10,779 2,000 2,000 2,000 2,000 

PARKS AND COM. SERVICES 453,647 528,410 382,862 513,185 503,185 


221 5896 COUNTY OF SANTA CRUZ REIMBURSEMENT 326,786 227,926 227,926 227,926 227,926 

510 5143 USER FEE - WASTE DISPOSAL 427,000 445,000 444,000 - - 

510 5144 USER FEE - WATER 208,000 218,000 218,000 - - 

510 5146 USER FEE - SEWER 170,000 178,000 177,000 - - 

510 5263 SPECIAL SERVICES REVENUES - STR 1,396 1,000 - - - 



Attachment 2 

A/C # 

General Fund 2009/10 2010/11 2010/11 2011/12 2012/13 




510 5504 GAS TAX - HIGHWAY MAINTENANCE 22,000 22,000 22,000 22,000 22,000 

511 5844 SIDEWALK REPAIR RECOVERY 16,249 100,000 100,000 100,000 100,000 

523 5247 MUNI SERVICE CENTER REVENUES 1,485,438 1,831,070 1,557,335 1,782,870 1,781,525 

PUBLIC WORKS 3,032,160 3,405,793 3,129,058 2,515,738 2,522,051 

G F REVENUE TOTAL: 32,857,089 32,406,436 32,577,643 33,166,814 32,968,092 

EXPENDITURES: 

110 City Council 51,398 53,745 52,120 60,742 60,742 

120 City Manager 815,299 734,214 695,979 734,806 736,087 

210 Human Resources 278,831 293,445 303,955 298,247 299,301 

CITY COUNCIL AND GENERAL GOVERNMENT 1,145,527 1,081,403 1,052,054 1,093,795 1,096,130 

160 City Clerk 399,016 410,957 381,213 393,126 393,578 

130 City Attorney 252,054 181,866 226,792 181,866 181,866 

CITY CLERK 651,069 592,823 608,005 574,992 575,444 

315 COMMUNITY DEVELOPMENT 1,213,434 1,242,298 1,132,203 1,210,550 1,215,276 

230 Finance 758,992 703,664 623,268 787,793 792,515 

235 Finance - Utilities 418,566 436,118 354,261 451,300 460,322 

240 Purchasing/Accounts Payable 193,174 180,337 193,091 182,183 182,839 

250 Information Services 835,908 604,943 725,211 620,261 623,304 

251 GIS 120,688 121,930 113,933 126,694 127,233 

FINANCE 2,327,328 2,046,991 2,009,764 2,168,231 2,186,213 

450 FIRE 6,276,684 5,262,096 6,026,814 5,416,316 5,587,791 

280 NON DEPARTMENT 161,975 71,804 105,657 202,341 202,341 

281/2 SOCIAL/COMMUNITY SERVICES 281,166 281,158 281,158 250,024 250,024 

620 Watsonville Library 501,403 501,403 501,403 501,403 501,403 

622 Freedom 40,081 40,081 40,081 40,081 40,081 

626 Literacy - - - - - 

LIBRARY 541,484 541,484 541,484 541,484 541,485 

680 Parks 1,068,297 967,675 936,753 966,456 966,445 

685 Special Events 52,746 5,436 55,673 142,471 142,975 

688 Neighborhood Services 234,847 175,715 157,749 164,898 169,822 

690 Administration 965,220 1,002,153 781,917 1,046,292 1,051,658 

691 Recreation Centers 705,449 831,031 745,248 714,287 720,297 

692 Sports Programs 265,466 309,429 256,329 301,544 302,967 

PARKS AND COMMUNITY SERVICES 3,292,025 3,291,439 2,933,669 3,335,948 3,354,164 

409 Support Services 2,959,463 3,320,177 3,218,711 3,217,706 3,175,531 

410 Operations 10,559,469 9,766,235 9,981,514 10,123,619 10,102,826 

417 Police Activity League 134,414 168,265 172,632 161,966 162,291 

419 Administrative Services 964,693 1,096,551 1,017,976 979,736 702,870 



Attachment 2 

A/C # 

General Fund 2009/10 2010/11 2010/11 2011/12 2012/13 



430 Animal Shelter 275,896 460,800 391,286 391,286 391,286 

POLICE 14,893,934 14,812,028 14,782,119 14,874,314 14,534,804 

220 Central Building and Maintenance 498,531 404,112 381,862 406,861 402,127 

221 Civic Center Common Area Maintenance 154,528 204,700 227,926 227,926 227,926 

510 Engineering and Streets 999,602 1,011,808 917,160 981,162 986,368 

511 Sidewalks 100,000 100,000 100,000 100,000 100,000 

523 Municipal Vehicle Maintenance 1,484,385 1,831,070 1,557,335 1,782,870 1,781,525 

PUBLIC WORKS 3,237,046 3,551,690 3,184,283 3,498,819 3,497,945 

Total Operating Expenditures 34,021,673 32,775,215 32,657,210 33,166,814 33,041,617 

901 CIP - - 200,000 200,000 - 

Total Current Year Expenditures 34,021,673 32,775,215 32,857,210 33,366,814 33,041,617 

Total Current Year Revenues 32,857,089 32,406,436 32,577,643 33,166,814 32,968,092 

Net Revenues (Expenditures) (1,164,584) (368,779) (279,567) (200,000) (73,525) 


CITY COUNCIL/REDEV# 6.2 (h) 



WATSONVILLE APPROVING ALL NON-UTILITY FEES UNDER $5 

SHALL ROUND UP TO NEXT 5-CENT INCREMENT RATHER THAN 

NEXT WHOLE DOLLAR AND REDUCING PUBLIC RECORDS ACT 

PHOTOCOPY FEE FROM .35 CENTS TO .25 CENTS PER PAGE 



1. That the City Council of the City of Watsonville does hereby approve 

revising the City’s annual Consumer Price Index (CPI) rounding method for all non-utility 

fees under $5 to round up to the next 5-cent increment rather than the next whole dollar. 

2. That the City Council of the City of Watsonville does hereby reduce the 

Public Records Act Photocopy Fee from .35 cents to .25 cents per page and excludes 

this fee from future city-wide CPI fee increases. 

*********************************** 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\PRA Fees.docx 

ri 6/9/2011 5:31:11 PM 

AJS ______ CJP ______ Finance _______ 

1

CITY COUNCIL/REDEV# 6.2 (i) 


(CM) 


WATSONVILLE CLASSIFYING THE VARIOUS COMPONENTS OF 

FUND BALANCE AS DEFINED IN GOVERNMENTAL ACCOUNTING 

STANDARDS BOARD STATEMENT NO. 54 

WHEREAS, on March 11, 2009, the GOVERNMENTAL ACCOUNTING 

STANDARDS BOARD (GASB) issued STATEMENT NO. 54, Fund Balance Reporting 

and Governmental Fund Type Definitions; and 

WHEREAS, the City Council desires to classify the various components of fund 

balance reported by the City as defined in GASB STATEMENT NO. 54. 



That the City Council hereby approves and defines, effective starting with the 

2010/2011 Fiscal Year, the various components of fund balance as reported by the City, 

as described and attached hereto on Exhibit “A,” and designates the Administrative 

Services Director as the City official to determine and define the amounts of those 

components of fund balance that are classified as “Assigned Fund Balance.” 

********************************* 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\GASB54.docx 

ri 6/9/2011 5:39:29 PM 

AJS ______ CJP ______ Finance ______ 

1

This Fund Balance Policy establishes the procedures for reporting unrestricted fund 

balance in the General Fund financial statements. Certain commitments and 

assignments of fund balance will help ensure that there will be adequate financial 

resources to protect the City against unforeseen circumstances and events such as 

revenue shortfalls and unanticipated expenditures. The policy also authorizes and 

directs the Finance Director to prepare financial reports which accurately categorize 

fund balance as per Governmental Accounting Standards Board (GASB) released 

Statement 54 -"Fund Balance Reporting and Governmental Fund Type Definitions". 

This new Statement is intended to improve the usefulness of the amount reported in 

fund balance by providing more structured classification. This Statement applies to fund 

balance reported in the General Fund, Special Revenue Fund, Debt Service Fund, 

Capital Projects Fund and Permanent Fund. This Statement does not apply to 

Enterprise Funds, Internal Service Funds, and extremely restricted reserves. 

Procedures 

Fund balance is essentially the difference between the assets and liabilities reported in 

a governmental fund. There are five separate components of fund balance, each of 

which identifies the extent to which the City is bound to honor constraints on the specific 

purposes for which amounts can be spent. 

Non-spendable Fund balance includes amounts not in spendable form, such as 

inventory, or amounts required to be maintained intact legally or contractually 

(principal endowment) (e,g, inventory, pre-paid items, permanent scholarships). 

Restricted Fund Balance includes amounts constrained for a specific purpose by 

external parties (e.g. Charter Reserve, Insurance Reserve, Debt Service, Capital 

Projects, State and Federal Grants). 

Committed Fund Balance includes amounts constrained for a specific purpose by 

a government using its highest level of decision making authority (e.g. Major 

Maintenance, Capital Replacement Reserve, Emergency Reserves). 

Assigned Fund Balance includes general fund amounts constrained for a specific 

purpose by a governing board or by an official that has been delegated authority to 

assign amounts. 

Unassigned Fund Balance is the residual classification for the general fund. 

The first two components listed above are not addressed in this policy due to the nature 

of their restrictions. An example of nonspendable fund balance is inventory. Restricted 

fund balance is either imposed by law or constrained by grantors, contributors, or laws 

or regulations or governments. This policy is focused on financial reporting of 

unrestricted fund balance, or the last three components listed above. These three 

components are further defined in the following section. 

Committed Fund Balance. The City Council, as the City’s highest level of decisionmaking 

authority, may commit fund balance for specific purposes pursuant to 

constraints imposed by formal actions taken, such as an ordinance or resolution. These 

committed amounts cannot be used for any other purpose unless the City Council 

Exhibit “A” 


emoves or changes the specified use through the same type of formal action taken to 

establish the commitment. City Council action to commit fund balance needs to occur 

within the fiscal reporting period; however the amount can be determined subsequently. 

Assigned Fund Balance. Amounts that are constrained by the City’s intent to be used 

for specific purposes, but are neither restricted nor committed, should be reported as 

assigned fund balance. This policy hereby delegates the authority to assign amounts to 

be used for specific purposes to the Administrative Services Director for the purpose of 

reporting these amounts in the annual financial statements. A few examples of 

assigned fund balance are: 

Continuing Appropriations: Fund balance levels must be sufficient to meet funding 

requirements for projects approved in prior years and which must be carried forward 

into the new fiscal year. 

Debt Service: Established to provide for future debt service obligations. 

Budget Balancing Measures: Funds set aside for the purpose of stabilizing the delivery 

of City services during periods of operational budget deficits and to mitigate the effects 

of major economic uncertainties resulting from unforeseen changes in revenues and/or 

expenditures. 

Unassigned Fund Balance. These are residual positive net resources of the general 

fund in excess of what can be properly classified in one of the other four categories. 

Fund Balance Classification. The accounting policies of the City consider restricted 

fund balance to have been spent first when an expenditure is incurred for purposes for 

which both restricted and unrestricted fund balance is available. Similarly, when an 

expenditure in incurred for purposes for which amounts in any of the unrestricted 

classifications of fund balance could be used, the City considers committed amounts to 

be reduced first, followed by assigned amounts and then unassigned amounts. 

This policy is in place to provide a measure of protection for the City against unforeseen 

circumstances and to comply with GASB Statement No. 54. No other policy or 

procedure supersedes the authority and provisions of this policy. 

In addition, governments will be required to disclose more information in the notes to 

financial statements about amounts reported in fund balance as follows: 

Description of authority and actions that lead to committed or assigned fund balance 

Government’s policy regarding order in which restricted, committed, assigned, and 

unassigned amounts are spent (contained in attached resolution) 

Description of formally adopted minimum fund balance policies (contained in 

attached resolution) 

The purpose of each major special revenue fund 

Encumbrances, if significant 



CITY COUNCIL/REDEV# 6.2 (j) 


(CM) 


WATSONVILLE ADOPTING THE FINAL BUDGET FOR THE CITY OF 

WATSONVILLE FOR FISCAL YEAR 2011-2012, ACCEPTING 

PROPOSED BUDGET FOR FISCAL YEAR 2012-2013, PROVIDING 

FOR CERTAIN TRANSFERS OF FUNDS, AND APPROVING FIVE 

YEAR (2011-2016) CAPITAL IMPROVEMENT PROGRAM (CIP) 

WHEREAS, pursuant to § 1103 of the Charter of the City of Watsonville a 

proposed two-year budget for fiscal years 2011-2012 and 2012-2013 has been 

submitted to the City Council by the City Manager and the City Council has reviewed 

and made revisions as it deemed advisable; and 

WHEREAS, pursuant to Section 1104 of the Charter, the Council fixed the time 

and place for holding the public hearing on the proposed budget; and 

WHEREAS, copies of the proposed budget have been and are available for 

inspection by the public at the Office of the City Clerk at least ten (10) days before the 

hearing to consider final adoption; and 

WHEREAS, pursuant to Section 1104 of the City Charter, a public hearing was 

held to consider the adoption of the proposed budget after due notice as provided by 

law at which time interested persons desiring to be heard were given such opportunity; 

and 

WHEREAS, after the conclusion of the public hearing the Council further 

considered the proposed budget and made any revisions thereto that it deemed 

advisable; and 

WHEREAS, the appropriate officers, departments, boards, and commissions of 

the City identified all public improvements proposed in Watsonville; and 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\Budget CIP Final.docx 

ri 6/9/2011 6:16:45 PM 

AJS ______ CJP ______ Finance _____ 

1

WHEREAS, on June 6, 2011, the Planning Commission reviewed said identified 

public improvements and listed and classified same with a coordinated program of 

proposed public improvements for the 2011-2016 period according to a logical order or 

priority; and 

WHEREAS, the Planning Commission recommended a coordinated program of 

proposed public improvements for the 2011-2016 period to the City Manager and 

Council, and 

WHEREAS, § 1105 of the Charter provides after submission of the proposed 

budget, but before the beginning of the ensuing fiscal year, the Council shall adopt a 

final budget with revisions, if any. 



Section 1. Approval of 2011-2012 and 2012-2013 Budget. That the City of 

Watsonville proposed two-year budget, 2011-2012 and 2012-2013, presented by the 

City Manager to the members of the City Council, and filed with the City Clerk, and as 

thereafter amended by the City Council, a copy of which budget is on file in the Office of 

the City Clerk, is hereby approved as to form in the amount of $154,949,458 for the 

fiscal year ending June 30, 2012, and $105,925,954 for fiscal year ending June 30, 

2013. 

Section 2. Adoption of 2011-2012 Budget. That the portion of the proposed 

two year budget applicable to the 2011-2012 fiscal year presented by the City Manager 

to the members of the City Council, and filed with the City Clerk, and as thereafter 

amended by the City Council, a copy of which budget is on file in the Office of the City 

Reso No. (CM) 


ri 6/9/2011 6:16:45 PM 

2

Clerk, is hereby approved as the final budget in the amount of $154,949,458 for the 

fiscal year ending June 30, 2012, and the several amounts stated therein as proposed 

expenditures are hereby appropriated for the objects therein described on Exhibit “A,” 

attached hereto and incorporated herein. 

Section 3. Appropriations. That from the effective date of the adopted budget, 

the amounts stated in said budget as proposed expenditures are hereby appropriated to 

the offices, agencies and departments for the respective objects specified in said 

adopted budget. 

Section 4. Council Transfers. That the City Council is authorized pursuant to 

Section 1107 of the Charter of the City of Watsonville, after adoption of the budget, to 

amend or supplement the budget as to authorize the transfer of unused balances 

appropriated from one purpose to another purpose, or to appropriate available revenue 

not appropriated in the budget. 

Section 5. Fund Balance. That the City Council is authorized to amend the final 

budget to state the exact fund balance on July 1, 2011, in lieu of the estimates 

contained in the proposed budget. 

Section 6. Lapse of Appropriations. Pursuant to § 1107 of the Charter, all 

such appropriations shall lapse at the end of the 2011-2012 fiscal year except to the 

extent that they shall have been expended or lawfully encumbered. 

Section 7. Manager Transfers. That the City Manager is authorized to transfer 

appropriations within fund budgets; provided, however, that the total appropriations are 

not increased thereby. 

Reso No. (CM) 


ri 6/9/2011 6:16:45 PM 

3

Section 8. 

Finance Transfers. That the Administrative Services Director is 

authorized to transfer appropriations among the items within departmental budgets, 

excepting there from Salary and Capital accounts. 

Section 9. 

Capital Improvement Program. That the Capital Improvement 

Program for 2011-2016, attached as a part of the 2011-2012 and 2012-2013 budgets, 

as amended by the City Council, is hereby approved, except for the General Fund CIP 

Expenditure items. Capital projects carried over from prior periods (reappropriated), as 

amended by Council are hereby approved. 

Section 10. Excess Expenditures. Pursuant to § 1107 of the Charter, except 

to the extent provided in this resolution, no officer, department or agency of the City 

shall, during any fiscal year, expend or incur any obligation to expend money for any 

purposes not authorized by or in excess of the amounts appropriated by this budget, as 

amended, for a given classification or expenditure. For purposes of expending or 

incurring such obligation, classification means the same as the term “fund” defined in 

the Budget. 

Section 11. Public Copy Available. Pursuant to § 1105 of the Charter, a copy 

of the adopted budget, certified by the City Clerk shall be placed on file in the office of 

the City Clerk where it shall be available for public inspection. Certified copies shall be 

reproduced and copies made available for use by all officers, offices, departments and 

other agencies of the City and for use by civic organizations 

************************************ 

Reso No. (CM) 


ri 6/9/2011 6:16:45 PM 

4

CITY OF WATSONVILLE & REDEVELOPMENT AGENCY OF THE CITY OF WATSONVILLE 

BUDGET APPROPRIATIONS 

BY FUND 

FUNDS: FISCAL FISCAL 

YEAR YEAR 

NUMBER DESCRIPTION 2011-12 2012-13 

150 GENERAL 33,366,814 33,041,617 

160 RETIREMENT 1,659,557 1,659,557 

201 REDEVELOPMENT 3,724,713 1,239,487 

203 HOUSING SET ASIDE 3,606,562 1,324,197 

205 CDBG 1,865,941 1,035,156 

207/209/210/214 OTHER RAH GRANTS 1,180,223 109,266 

215 RELOCATION 95,000 95,000 

221 INCLUSIONARY HOUSING 251,563 251,867 

225 BUSINESS DEVELOPMENT 62,015 62,045 

227 BUSINESS LOAN GUARANTEES 100,000 100,000 

245 ABANDONED VEHICLE AUTHORITY 90,562 90,562 

250 LIBRARY 4,044,156 3,621,099 

265 PEG 37,019 37,019 

281 PARKS DEVELOPMENT 691,994 835,000 

305 GAS TAX 6,122,562 1,165,000 

309 PARKING GARAGE 120,243 106,336 

338/352 IMPACT FEES 4,824,566 857,140 

354 LLMAD 168,165 169,382 

825 NARCOTICS FORFEITURE 155,000 25,000 

510 DEBT SERVICE 1,429,711 1,423,626 

515 RDA DEBT SERVICE 7,886,174 7,931,874 

710 WASTE WATER 12,967,408 10,536,856 

720 WATER 41,784,610 21,236,434 

730 AIRPORT 11,555,139 2,642,895 

740 SOLID WASTE 9,278,096 8,685,740 

765 COMPUTER REPLACEMENT - - 

780/785 INTERNAL SERVICES 7,881,667 7,643,800 

TOTAL APPROPRIATIONS 154,949,458 105,925,954 

City of Watsonville 139,732,010 95,430,396 

Redevelopment Agency of the City of Watsonville 15,217,449 10,495,558 

Total Appropriations 154,949,458 105,925,954 



CITY COUNCIL/REDEV# 6.2 (k) 

ORDINANCE NO. ____________ (CM) 

AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY 

OF WATSONVILLE INSTRUCTING THE COUNTY OF SANTA CRUZ TO 

LEVY AND COLLECT A PROPERTY TAX ON TAXABLE PROPERTY IN 

THE CITY OF WATSONVILLE FOR THE FISCAL YEAR BEGINNING 

JULY 1, 2011, FIXING THE RATE OF 0.077% THEREOF AND 

ALLOCATING IT TO THE RETIREMENT FUND 

WHEREAS, Proposition 13 [Article XIII of the State Constitution] does not apply to 

measures approved by the voters prior to the effective date of the Article XIII of the State 

Constitution; and 

WHEREAS, participation in the State Employees Retirement System or other 

system for the retirement of City employees, hereinafter set forth, is a measure approved 

by the voters of the City of Watsonville prior to the effective date of Article XIII-A; and 

WHEREAS, pursuant to Ordinance No. 437-78 (CM), as amended by Ordinance 

No. 670-85 (CM), the County of Santa Cruz is authorized to levy and collect ad valorem 

taxes on taxable property within the City of Watsonville; and 

WHEREAS, on November 7, 2006, at a Special Municipal Election, the voters of 

the City of Watsonville approved Subdivision (3)(b) of Section 1122 of Article XI of the 

Charter of the City of Watsonville establishing the rate to be collected not to exceed 7.7 

cents on each One Hundred and no/100 th ($100.00) Dollars of assessed valued. 

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WATSONVILLE, 

CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: 

SECTION 1. ENACTMENT. The County of Santa Cruz is hereby instructed to levy 

upon the taxable property of the City of Watsonville for fiscal year beginning JULY 1, 

2011, a property tax which is hereby fixed at the rate of 0.077% (pursuant to Subsection 

Ord No. (CM) 

Q:\COUNCIL\2011\061411\Budget Retirement 2011.docx 

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1

1122(b)(3) of the Charter of the City of Watsonville), designated and to be allocated and 

divided among the funds of the City, as described and attached hereto on Exhibit “A.” 

SECTION 2. EFFECTIVE DATE. This ordinance shall take effect immediately 

upon the adoption in accordance with Section 608(c) of the Charter. 

SECTION 3. PUBLICATION. The City Clerk is hereby directed to cause this 

ordinance to be published in one regular issue of the Watsonville Register-Pajaronian, a 

newspaper of general circulation, printed and published in the City, within fifteen (15) 

days after its adoption. 

*********************************** 

Ord No. (CM) 

Q:\COUNCIL\2011\061411\Budget Retirement 2011.docx 

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2


Final Retirement Tax Calculations 

with Levy Rate of 0.077% 

Fiscal Year 2011 - 2012 

General Fund Public Safety Departments 


Police PERS 2,321,190 

Police Employee PERS Contribution paid by City 61,359 

Police Social Security &/or Medicare 164,346 

Alternate 457 for Temporary employees 1,765 

Fire Department 

Fire PERS 527,405 

Fire Employee PERS Contribution paid by City 27,521 

Fire Social Security &/or Medicare 59,587 


General Fund- Remaining Departments 

Retirement 

System Costs 

PERS 818,022 

Employee PERS Contribution paid by City 272,384 

Social Security 558,622 


Administration Fee Allocation Costs 52,840 

Grand Total Needed 4,891,701 

Less: Allowance for Turnover (150,000) 

Estimated General Fund Pension Costs $ 4,741,701 

Less: Estimated Levy Proceeds (34% of total costs) 1,594,119 

Amount supported by General Fund $ 3,147,582 



CITY COUNCIL/REDEV# 6.2 (l) 

RESOLUTION NO. ________ (CM) 


WATSONVILLE ESTABLISHING TOTAL ANNUAL APPROPRIATIONS 

PURSUANT TO CALIFORNIA STATE CONSTITUTION ARTICLE XIII-B 

FOR FISCAL YEAR 2011-2012 

[Proposition 4 Gann spending limit] 

WHEREAS, the initiative commonly referred to as Proposition 4 Gann spending 

limit adopted November 6, 1979, by the state electorate provided for Article XIII-B of the 

State Constitution to establish government spending limitations, and requires the 

establishment of total annual appropriations subject to certain limitations and 

adjustments for change. 


OF WATSONVILLE, CALIFORNIA AS FOLLOWS: 

That the total annual appropriations limit (Proposition 4 Gann spending limit) for 

the City of Watsonville during the fiscal year 2011-2012 is $112,761,432; the amended 

budget subject to the spending limit is $21,267,809 as set forth in Exhibit “A,” a copy of 

which is attached hereto, and is hereby approved and adopted. 

**************************** 

Reso No. (CM) 

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Exhibit A 

Proposition 4 Calculation 

For Fiscal Year 2011-2012 

Spending Limit Calculation 

[a] 2010-2011 Limit $ 112,233,876 

Calculation of Growth Factor 

Change in Population -1.990% 

Non-resident, New Const. Assessment Growth not used 

Change in California Per Capita Person Income 2.510% 

[b] Growth Factor (0.9801 multiplied by 1.0251) 1.00470051 

[c] 2011-2012 Limit ( [a] multiplied by [b] ) $ 112,761,432 

2011-2012 Gann Limit Proposed Spending 

Proposed General Fund Spending $ 33,146,814 

Less Non-tax General Fund Revenues: 

Transfers In (non-tax) (150,000) 

Use of Money and Property (1,790,400) 

Fees (9,938,605) 

In-lieu Charges - 

Other non-tax revenue - 

[d] Spending Subject to the Gann Limit $ 21,267,809 

Remaining Capacity ( [d] subtracted from [c] ) $ 91,493,623 

P:\BUDGET-resources\GANN\[GANN.xlsx]Exhibit A 


CITY COUNCIL/REDEV# 6.2 (m) 



WATSONVILLE AMENDING RESOLUTION 53-02 (CM) WHICH FIXED 

RENT CHARGES FOR HANGARS AND FACILITIES AT THE 

WATSONVILLE MUNICIPAL AIRPORT 

Amends Resolution No. 53-02 (CM) 

WHEREAS, on February 26, 2002, the City Council adopted Resolution No. 53- 

02 (CM) fixing rent charges for hangars and facilities at the Watsonville Municipal 

Airport; and 

WHEREAS, given the high demand for hangars at the Watsonville Municipal 

Airport and the disparity between comparable hangar rents, staff recommends 

increasing all hangar rents by 5% to bring the rent in line with other comparable aviation 

rents in the region. This increase is in addition to the annual CPI increase, adopted or 

implemented elsewhere. 



Pursuant to its authority as set forth in Watsonville Municipal Code Section 5- 

2.12, the City Council hereby approves a five percent (5%) market based increase for 

all hangar rentals, tie down, T-hangar and similar aircraft space rents at the Watsonville 

Municipal Airport. 

*********************************** 

Reso No. (CM) 

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AJS ______ CJP ______ Finance _______ 

1

CITY COUNCIL/REDEV# 6.2 (n) 



OF WATSONVILLE APPROVING FINAL BUDGET FOR THE 

REDEVELOPMENT AGENCY FOR FISCAL YEAR ENDING JUNE 30, 

2012, ACCEPTING PROPOSED BUDGET FOR FISCAL YEAR ENDING 

JUNE 30, 2013, SUBJECT TO THE REQUIREMENTS SET FORTH IN 

RESOLUTION NO. (CM) OF THE CITY COUNCIL OF THE CITY 

OF WATSONVILLE 

WHEREAS, the City Council of the City of Watsonville, pursuant to Resolution 

No. ____ (CM), adopted a budget for the City of Watsonville for fiscal year ending June 

30, 2012, and set forth in Sections 3, 4, 5, 6, 7, and 8 therein all certain authorizations 

which the Redevelopment Agency wishes to apply concerning fiscal matters of the 

Redevelopment Agency. 

NOW, THEREFORE, BE IT RESOLVED BY THE REDEVELOPMENT AGENCY 

OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS: 

1. That the proposed budget, 2011-2012 and 2012-2013, of the 

Redevelopment Agency of the City of Watsonville, presented by the Executive Director 

to the members of the Redevelopment Agency and filed with the Agency Secretary, a 

copy of which is on file in the Office of the Agency Secretary, is hereby adopted as the 

final budget for the fiscal year ending June 30, 2012, and as the accepted proposed 

budget for fiscal year ending June 30, 2013, and the several amounts stated therein as 

proposed expenditures are hereby appropriated for the objects therein described for the 

fiscal year ending June 30, 2012. 

2. That the authorization set forth in Sections 3, 4, 5, 6, 7, and 8 of 

Resolution No. 

(CM) of the City Council of the City of Watsonville, be and they 

are hereby made applicable to the Redevelopment Agency of the City of Watsonville by 

this reference. 

****************************** 

Reso No. (RA) 

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AJS ______ CJP ______Finance ______ 

1

CITY COUNCIL/REDEV# 6.2 (o) 



OF WATSONVILLE FINDING THAT THE USE OF LOW AND 

MODERATE INCOME HOUSING FUNDS ALLOCATED FROM THE 

WATSONVILLE 2000 REDEVELOPMENT PROJECT FOR PLANNING 

AND GENERAL ADMINISTRATIVE COSTS IS NECESSARY FOR THE 

PURPOSE OF PRODUCING, IMPROVING, AND PRESERVING THE 

COMMUNITY’S SUPPLY OF LOW AND MODERATE-INCOME 

HOUSING 

WHEREAS, the City Council of the City of Watsonville, adopted Resolution No. 

_____ (CM) approving the 2011-2012 Budget for the fiscal years 2011-2013 for the City; 

and 

WHEREAS, the Redevelopment Agency adopted Resolution No. 

(RA) 

approving the 2011-2012 Budget for the City of Watsonville Redevelopment Agency; and 

WHEREAS, the Redevelopment Agency of the City of Watsonville (“Agency”) 

approved and adopted the Watsonville 2000 Redevelopment Plan (the “Plan”) for the 

Watsonville 2000 Redevelopment Project Area; and 

WHEREAS, in accordance with Subdivision (a) of Section 33334.2 of the 

California Community Redevelopment Law (Health and Safety Code Sections 33000 et 

seq. and hereinafter the “CRL”), not less than twenty percent (20%) of all tax increment 

allocated to the Agency from the Watsonville 2000 Redevelopment Project Area shall be 

used for the purposes of increasing, improving and preserving the community’s supply of 

low and moderate income housing (the “Low and Moderate Income Housing Fund”); and 

WHEREAS, in accordance with Subdivision (d) of CRL Section 33334.3, an 

agency is authorized to expend money from the Low and Moderate Income Housing 

Fund for planning and general administrative activities associated with the development, 

improvement and preservation of affordable housing which is not disproportionate to the 

Reso No. (RA) 

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amount actually spent for the costs of production, improvement, or preservation of that 

housing. 

NOW, THEREFORE, BE IT RESOLVED BY THE REDEVELOPMENT AGENCY 

OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS: 

Section 1. 

That pursuant to Subdivision (d) of CRL Section 33334.3, the 

Agency hereby finds and determines that the use of money from the Low and Moderate 

Income Housing Fund to pay for planning and administrative expenses is necessary for 

the production, improvement, or preservation of low- and moderate-income housing. 

Section 2. 

That pursuant to Subdivision (e) of CRL Section 33334.3, the 

Agency hereby authorizes the use of Low and Moderate Income Housing Funds to pay 

those planning and administrative costs incurred by the Agency which are directly related 

to programs and activities authorized by the Agency as provided in CRL Section 

33334.2(e). 

Section 3. 

That the findings and determinations set forth herein shall be 

deemed final and conclusive. 

Section 4. 

That the Secretary shall certify as to the adoption of this Resolution 

and shall cause the same to be processed in the manner required by law. 

****************************** 

Reso No. (CM) 

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2

CITY COUNCIL/REDEV# 6.2 (p) 



A JOINT RESOLUTION OF THE CITY COUNCIL AND THE 

REDEVELOPMENT AGENCY OF THE CITY OF WATSONVILLE 

FINDING THAT THE USE OF TAXES ALLOCATED FROM THE 

WATSONVILLE 2000 REDEVELOPMENT PROJECT FOR THE 

PURPOSE OF IMPROVING, INCREASING, AND PRESERVING THE 

COMMUNITY’S SUPPLY OF LOW AND MODERATE INCOME 

HOUSING OUTSIDE THE PROJECT AREA WILL BE OF BENEFIT TO 

THE PROJECT AREA 

WHEREAS, in accordance with Subdivision (a) of Section 33334.2 of the 

California Community Redevelopment Law (Health and Safety Code Sections 33000 et 

seq. and hereinafter the “CRL”), not less than twenty percent (20%) of all tax increment 

allocated to the Agency from the Watsonville 2000 Redevelopment Project Area shall 

be used for the purposes of increasing, improving and preserving the community’s 

supply of low and moderate income housing; and 

WHEREAS, the General Plan of the City of Watsonville (the “City of Watsonville 

2005 General Plan”) indicates a need for affordable housing throughout the community; 

and 

WHEREAS, Subdivision (g) of CRL Section 33334.2 provides that the Agency 

may use funds outside the Project Area upon adoption of resolutions by the Agency and 

the City Council finding that the provision of low and moderate income housing outside 

the Project Area is of benefit to the Project; and 

WHEREAS, future locations of such housing for low and moderate income 

families cannot by fully determined at this time. 

Reso No. (CM) Reso No. (RA) 

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

REDEVELOPMENT AGENCY OF THE CITY OF WATSONVILLE, CALIFORNIA, AS 

FOLLOWS: 

Section 1. 

That pursuant to Subdivision (g) of CRL Section 33334.2, the City 

and Agency hereby find that the provision of low and moderate income housing outside 

the boundaries of the Project Area will be of benefit to the Project Area, due to the need 

for such affordable housing throughout the community as indicated by the City of 

Watsonville 2005 General Plan and as more land may be required than is available 

within the Project Area for development of affordable housing. 

Section 2. 

That pursuant to Subdivision (g) of CRL Section 33334.2, the City 

and Agency hereby authorizes the use of Low and Moderate Income Housing Funds 

outside the boundaries of the Project Area. 

Section 3. 

That the findings and determinations set forth herein shall be 

deemed final and conclusive. 

Section 4. 

That the City Clerk/Agency Secretary shall certify as to the adoption 

of this Resolution and shall cause the same to be processed in the manner required by 

law. 

****************************** 

Reso No. (CM) 

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2

CITY COUNCIL 6.2 (q) 



WATSONVILLE APPROVING THE CITY OF WATSONVILLE 

STRATEGIC PLAN 2011-2013 



That the City of Watsonville Strategic Plan 2011-2013, a copy of which is attached 

hereto and incorporated herein by this reference, is hereby approved. 

******************************************* 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\Strategic Plan 2011.docx 

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AJS ______ CJP ______ ACM ______ 

1


Strategic Plan 2011-2013


Executive Summary………………………………………………….. 3 

Action Plan…………………………………………………………… 5 

Current Projects & Initiatives………………………………………… 9 

Department Proposed New Initiatives and City Council Priorities……. 23 

Appendix……………………………………………………………….. 28 

1

EXECUTIVE SUMMARY 2011 - 2013 

Background. Since 1994, the Watsonville City Council has held several goal-setting Study Sessions. 

These events have allowed the City Council to identify pressing issues in the community, and 

translate these into concrete goals. The Council then has the ability to assist staff in the 

prioritization of existing and proposed programs and projects, such that the implementation of the 

goals becomes a reality in the adoption of the City budget. 

Strategic Planning Process. Strategic Planning is an ongoing process that takes place throughout the 

year, culminating in a goal-setting study session. On March 8, 2011, members of the City Council and 

City Management Staff met in an open session to discuss the community’s needs and identify the 

goals that would provide direction for the next two years. Following the goal-setting process, the 

City Council met on April 26, 2011 and on May 17, 2011 in order to identify and rank future programs 

and projects that will implement these goals. 

Project Ranking Process. City staff and Council Members prepare a list of “Proposed New 

Initiatives”. The list includes a variety of programs and projects that could be implemented in the 

next two years. Once the list is completed each Council Member is asked to rank the projects. 

The Council may also use some of their ranking tools to rank the importance of Current Initiatives or 

Projects. Although these projects are already underway and funded, this is done in order to show 

which current projects are of critical importance to the Council. This does not affect the status of the 

current projects. 

Efficiencies. City Council requested that each department develop a list of potential efficiencies and 

identify any potential new revenue. The lists were developed and City staff and the City Council will 

work throughout 2011 addressing the viability of the efficiencies, the cost/benefit to the community 

and the value of implementation. 

Identifying Potential New Revenue. Council and staff developed a list of potential new revenue 

ideas and increased fees. The Council also wishes to revisit the current subsidy level of some of the 

fees, in order to determine if the City is able to recover a higher percentage of the actual cost to 

deliver the services. 

3

Council Goals. At their March 8 goal-setting study session the City Council reviewed several of 

the main issues affecting the City of Watsonville and reached consensus on four goals and one 

area of interest. These goals will be implemented and prioritized through a variety of programs 

and initiatives. The goals identified during this session were: 

 

 

 

 

Sustainable Economic Development 

Safe and Healthy Community 

City Image 

Community Resources 


The Goals 

Sustainable Economic Development. The Watsonville City Council has always emphasized the 

importance of new job creation and economic development. With special focus on the 

redevelopment of the downtown, as well as job creation and job training, several projects will 

further this goal. An important objective is to create development potential for commercial 

and industrial users that would bring new jobs to the community. The primary project that will 

further this goal is the implementation of the Manabe/Ow Specific Plan. 

Safe and Healthy Community. The Watsonville City Council is interested in enhancing and 

improving the safe environment currently found in Watsonville. In order to achieve this goal, 

the City is including crime prevention, suppression and law enforcement together with positive 

activities and alternative approaches, such as the Community Post Incident Team and Contigo 

programs. 

City Image. Potentially a tool for economic development, as well as a vehicle for community 

pride, the City Council wishes to implement programs and initiatives that will reflect positively 

on the community’s image. The City has completed several activities, including a downtown 

mural program, sidewalk cleaning and façade improvement projects. 

Community Resources. The continued improvement of the community’s infrastructure is a 

high priority. Beyond streets and utilities, infrastructure also includes quality of life projects 

such as flood protection with an improved levy system, increased forestation, optimal fire 

prevention and suppression activities, etc. Measures to improve traffic flow are also included 

under this goal. 

Educational Attainment. In conjunction with the Pájaro Valley Unified School District, 

Cabrillo College, UCSC and many other agencies and programs, the City of Watsonville is 

working toward improved educational attainment and job skill development for the City’s 

workforce. This workforce is a key component to the sustainability of all economic 

development efforts, as well as the quality of life for members of the community. 

4

The Action Plan 

Action Plan. The Action Plan identifies the City Council’s goals and inventories the programs 

and projects selected to implement and further the goals. These programs and projects are 

being pursued in response to the Council’s direction and they form a part of the daily 

operations of the City. The focus on these items enhances the ongoing work and services of the 

various City departments. 

Action Plan Implementation 2011-2013 

Goal I: Sustainable Economic Development 

Objective 1: Downtown Revitalization 

1. Continuation Of Downtown Streetscape Improvement Plan 

2. Continued Implementation Of Stoesser Alley Master Plan 

3. Storefront (Façade) Improvement Program 

Objective 2: Job Creation & Workforce Skill Development 

4. Business Outreach Program 

5. Business Recruitment Program 

6. Develop Data & Resources For Industrial Property/Business 

7. Extend Timeline For Enterprise Zone 

8. Green Jobs Incubator 

9. Guaranteed Loan Program For Businesses 

10. Manabe-Ow Specific Plan Implementation 

Objective 3: Better Use of Underutilized Land & Other Development Opportunities for Industrial and 

Commercial Development 


12. Develop Data & Resources for Industrial Property/Business 

13. Update of General Plan VISTA 2030 


5

Goal II: Community Resources 

Objective 1: Community Infrastructure 

1. 36 Airport Road – Mixed Market Rate And Affordable Housing Project 

2. AB 32 Greenhouse Gas Reductions 

3. Airport Capital Improvements (Design & Construct) 

4. Animal Services Authority Of SC County 

5. Armory Acquisition 

6. Assist In Creation Or Preservation Of Affordable Housing 

7. Broadband Project 

8. Central Coast Broadband Consortium 

9. Channel 70 Programming 

10. City Disaster Response Plan 

11. City Manager E-Newsletter Wingspan 

12. City Staff Training For Disaster Response 

13. City Trails Master Plan 

14. City-Wide Newsletter 

15. Code Enforcement 

16. Development & Maintenance Of City Website 

17. Emergency Preparedness 

18. General Plan And EIR Update (Vista 2030) 

19. General Plan Implementation (Title 14: Zoning Revisions) 



22. Large Scale Solar Projects At Landfill And Airport 


24. Marketing/Underwriting For Potential Re-Sale Of Affordable Housing 

25. Measure U Implementation 

26. Neighborhood Development Program At Carey/Davis 

27. Neighborhood District Meetings 

28. Pájaro River Flood Control 

29. Pájaro River Trails Project 

30. Pinto Lake 319h Grant 

31. Pinto Lake C&A Grant 

32. Pinto Lake Invasive Species Monitoring 

33. Pinto Lake Toxin Testing 

34. Redistricting 

35. Roof Top Solar Power Projects 

36. Sale Of City Or Agency Property For Use As Affordable Housing 


38. Social Service Grants 

39. Solar Power Project 

40. Targeted Neighborhood Marketing For Housing Rehabilitation 

41. Urban Greening Planning Grant 

42. Watsonville Slough Restoration 

43. Wireless Local Area Network 

6

Objective 2: Streets & Traffic 

44. CEC Funded Led Street Light Replacement 

45. Freedom & Main Roundabout 

46. Freedom Blvd – Lincoln To Davis - Design 

47. Freedom Blvd. – High To Lincoln- Reconstruction 

48. Freedom Blvd. – Utility Underground 

49. Highway 1/ Harkins Slough Road Interchange 

50. Neighborhood Traffic Program 

51. Ohlone/Beach Street Signal 

52. Pavement Maintenance Project 

53. PG&E 0% Loan Led Lighting Retrofit 


55. Traffic Calming For Improved Traffic Flow 

Objective 3: Utilities 

56. Corralitos Water Filter Plant Upgrade 

57. Expansion Of Commercial Recycling 

58. Fine Bubble Diffuser For Energy Savings 

59. Hames Reservoir Improvements 

60. Implement New State Recycling Mandates 

61. Implement Phase Ii Storm Water Program 

62. Integrated Waste Task Force 

63. Landfill GHG Monitoring & Reporting 

64. Landscape Water Audits 

65. Materials Recovery Facility Modifications 

66. Meter Reading Upgrade 

67. PDO Facility Improvements 

68. Recycling Audits 

69. SCADA System Upgrade 

70. TMDL Program For Drainage To Surface Water 

71. Toilet Retrofit Program 

72. Urban Water Management Plan 

73. Water Fluoridation Implementation 

74. Water Main Replacements 

75. Watershed Sanitary Survey 

76. Zone 2 Reservoir 


2. Home Improvement Grants 

3. Implement Public Art Program 




7. Volunteer Coordination 


Goal III: City Image 

7

Goal IV: Safe & Healthy Community 

Objective 1: Police Department – Gang Prevention & Suppression 

1. CONTIGO, Neighborhood Gang Prevention & Intervention Program 

2. Gang Violence Suppression 

3. Safe– Gang Prevention & Intervention 

4. Santa Cruz County Auto Theft Recovery & Enforcement 

5. Santa Cruz County Narcotics Enforcement Team 

Objective 2: Work With the Community & School District 

5. “CPR” Crime Prevention Response (I.E. Neighborhood Watch, Safety Academy, National Night 

Out) 

6. Community Policing 

7. Police Activities League (PAL) 

8. Police Cadet Program 

9. School Resource Officer PVHS & WHS 

10. Truancy Abatement – Crime Suppression 

Objective 3: Healthy Community 

11. Neighborhood Meetings 

12. BASTA 

Objective 4: Fire Department 

13. Telestaff Time Recording/Reports 

14. Internal 2011 Strategic Plan 

Objective 5: Crime Prevention & Law Enforcement 

18. Alcohol Licensing And ABC 

19. Automated Fingerprint Information System-Bar Coding & Thumbprints In Field 

20. Community Post Incident Team 

21. Crisis Negotiation Response 

22. Narrowbanding 

23. Traffic Enforcement Enhancement BADGES/AVOID9 

8

Department Current Projects and Initiatives & Core Mission 

9




When 

Completed 


Channel 70 Programming H Administration $ On-going 

Wingspan City Manager eNewsletter H Administration $ On-going 

Action Pájaro Valley 

Measure U Implementation 

VH Administration $$$ On-going 

City-wide Newsletter H Administration $$$ On-going 

Pájaro River Flood Control VH Administration $$$ On-going 

Downtown Economic Development VH 


Redevelopment 

$$$ On-going 

Redistricting Process H Administration, $$ 2011 

General Plan & EIR Update 

VH 


& Community 

Development 

$ 2012 

Staff Mayor’s Ad-Hoc Subcommittee H Administration $ On-going 

Social Services Grants Mayor’s Ad-Hoc 

Subcommittee 

H Administration $ On-going 

Labor Negotiations VH Administration $$$ 2011 

Budget Crisis Response VH Administration $$ On-going 

Manabe-Ow Business Park Development VH 


Redevelopment 

& CDD 

$$$ On-going 

Administration Core Mission (Partial List) 

Voting / Elections 

Records Custodian 

Drafting of Ordinances & Resolutions 

Fair Political Practices Commission (FPPC) Filings 

City Council & Redevelopment Agency Agenda Preparation 

Classification & Compensation 

SMART Training Program 

Recruitment & Testing 

Personnel Commission 

Disciplinary Process 

Constituent Requests 

Council Member Requests 

Social Service and Community Service Grants 

Legislation 

Homeless Program 

Labor Negotiations 

Grievance Process 

Downtown Public Parking District 

10


Community Development 


When 

Completed 


Update of General Plan and EIR VH Planning $$$ 2011 

General Plan Implementation: 

Title 14 and map revisions 

VH Planning $$ 2012 

Implementation of Manabe-Ow Specific 

Plan 

VH Planning $$$ Ongoing 

Historic Ordinance Revisions M Planning $ 2011 

Community Development Core Mission (Partial List) 

Building Related Services: 

Permit Center 

Plan Check (Building & Fire) 

Over-the-counter services (Building & Fire) 

Permit Issuance (Building & Fire) 

Inspection (Building & Fire) 

Access Coordination (ADA and Title 24) 

Code Assistance and Coordination with City Departments 

Code Enforcement 

Citizen Complaints 

Pro-active Enforcement 

Property Maintenance 

Weed Abatement 

Foreclosure monitoring 

Development Engineering 

Plan Check and Permit Issuance 

Water and Sewer ―will serves‖ 

Addressing 

Floodplain Administration 

Planning 

Development Review (Current Planning) 

Long Range (General Plan/Specific Plans/Ordinance Revisions) 

Annexations 

Interagency Coordination 

Planning Commission 

Minor Land Division Committee 

City Council 

11


Finance 


When 

Completed 


Animal Services Authority of SC 

County Board Chair 

VH Accounting $ On-going 

Public Agency Risk Sharing 

Authority of California Finance VH Accounting $ On-going 

Committee 

Central Coast Broadband 

Information 

VH 

Consortium Board Chair 

Technology 

$ On-going 

Transition Check Printing to Finance M Accounting $ July 2011 

Cross-train staff with other customer 

service departments 

M Revenue $ On-going 

Recommendation on Solar Panel 

Accounting, Public 

H 

installation on City owned Facilities 

Works 

$$$ May 2011 

Complete Health Care Broker RFP M Accounting $ March 2011 

Evaluate Budget Options for 

Accounting, 

VH 

2011/12 Fiscal Year 

Revenue 

$$$ June 2011 

Streamline internal reporting 

Accounting, 

M 

functions 

Revenue 

$ Nov 2010 

Refinance City Debt Issues H Accounting $$$ On-going 

Relocate Emergency Operations 

Information 

H 

Center 

Technology 

$ August 2010 

Wireless Local Area Network 

Automated Fingerprint Information 

System-bar Coding & Thumbprints 

in Field 

VH 

H 

Information 

Technology 

Information 

Technology 

$$$ August 2011 

$ December 2011 

12

Finance Core Mission (Partial List) 

Accounting & Financial Reporting 

Accounts Payable 

Accounts Receivable 

Audit 

Independent (Includes preparation of Request for Proposal) 

State 

Federal 

Compliance 

Internal Controls 

Banking Request for Proposal 

Business License Administration & Collection 

Budget 

Long Range Forecasts 

Preparation And Development 

On-Going Management And Compliance 


Debt Issue And Administration 

Information Systems 

Application Support 

Architect Of, Design And Consult On Systems 

Citizen Communication Interaction 

City-Wide Records Management 

Core Infrastructure Maintenance And Growth 

Data Back-Up And Restoration 

E-Government 

Geographical Information Systems (GIS) 

Internal website maintenance 

Public website administration, maintenance and design 

Wingspan maintenance 

Other Internal Services 

Grant management and reporting 

Financial Analysis 

Investments & Cash Management 

Payroll 

Purchasing 

Rent Control 


Safeguard City Assets 

Transient Occupancy (aka Hotel) Tax Administration & Collection 

Utility Management for Citizen services 

Billing 

Collection 


13


Fire 


When 

Completed 


Telestaff Time Recording/Reports VH Administration $$ In Progress 

City Disaster Response Plan H Administration $ In Progress 

City Staff Training for Disaster Response H Administration $ In Progress 


Emergency Fire/Rescue/Medical Response (2008: 4,110 incidents) 

Maintenance of Equipment, Fleet, and Facilities 

Training, Professional Development and Succession Planning 

Public Education and Community Outreach 

Target Hazard Pre-Incident Planning 

Fire Prevention Inspections and Permitting 

Firefighter Health and Safety 

Interagency Command Unit Facilitation 

Cooperative Fire Protection/Automatic Aid Agreements 

Library 

Library Core Mission (Partial List) 

Literacy Program (Opportunity to Read) 

Public Access Computers in Computer Lab and Early Learning Stations in Children’s 

Area 

WiFi 

Community Access to Online Databases 

Resource Sharing with Other Libraries – Local and Nationwide 

Welcoming Space for Groups and Meetings 

Designated Teen Area 

Provide Materials and Resources in Many Formats 

Answer Questions 

Programming for Adults, Teens and Children (Story times in English and Spanish) 

Outreach to Community (LibraryLink) 

Classroom Visits and Library Tours 

Homework Help 

Pursuing Grant Opportunities and Collaborations with Local Groups and Businesses 

14



Neighborhood Development 

Program at Carey/Davis 

CONTIGO, a Marinovich 

Neighborhood Gang Prevention & 



When 

Completed 


Neighborhood 

VH Services $$$ 2012 


Recreation 

VH Administration $$ December 2012 

WPD 

Parks and Community Services Core Mission (Partial List) 

Operate 3 Computer Centers (ECYN, Marinovich & Ramsay) 

Operate After-School Drop In Program at 5 Recreation Facilities (Callaghan, Marinovich, Ramsay, 

Muzzio, Youth Center) 

Youth Advisory Council 

Get Out Get Fit Camp—Obesity Prevention Program 

Youth Late Night Activities and Special Events 

Implement special events at recreation centers (e.g., Cesar Chavez Youth Volunteer Recognition 

Awards, Lights On After School, Operation Recreation) 

Neighborhood Development Program (Carey/Davis) 

Recruit/Train Volunteers for Post Incident Team (PIT) and Respond to Incidents 

Neighborhood Watch Program 

Census Count 

Coordinate Neighborhood Meetings 


Coastal Clean-Up held at Ramsay and River Park/Levy 

Seeds of Love Holiday Event 

Maintain 26 Parks (17 with Playgrounds) and 9 Public Grounds 

Maintenance of 3 LLMAD Districts (Gonzalez, Bay Breeze and Vista Montana) 

Maintain over 400 street trees and 17 parking lots 

Commemorative Tree and Bench Program 

Implementation of Park Master Plan 

Boys Sports Programs (soccer league, sports camps) 

Men’s Sports Program (Softball, Basketball) 

Women and Girls Sports Program (Soccer, Softball, Coed Volleyball, Coed Softball, sports camps) 

Summer Aquatics Program 

Summer Lunch Program 

Itty Bitty Sports 

Special Interest Classes for all ages (e.g., physical fitness, art, first aid & CPR, lifeguard training) 

Adult Trips Program 

Special Events Committee 

Coordinate, implement and/or facilitate implementation of City-wide Community Events (4 th of 

July Parade, Veteran’s Parade, Watsonville Strawberry Festival, Day of Child/Earth Day, Holiday 

Factory Sale, Snow Day) 

Administration of Community Special Event Applications 

City’s Volunteer Program 

Manage Reservations for use of Civic Plaza Community Room 

Facility Rental Program 

Department Customer Service Office (Registrations, information & referral) 

Update of City Website 

15


POLICE 



When 

Completed 

Alcohol Licensing and ABC H Support Services $ On-going 

BASTA H Chief & Admin $ On-going 

Administrative 

CalGRIP S.A.F.E. Initiative 

L Support $ 4/1/2012 

Community Post Incident Team H Operations $$ On-going 

Gang Violence Suppression VH Operations $$$ On-going 

Narrowbanding VH Chief & C.M. $$$$$ 2013 

Operations & 


VH Support Services $ Every August 

Neighborhood Meetings H Operations $ On-going 

Police Activities League & Police 

Cadet Program H Support Services $$ On-going 

School Resource Officer- 

PVHS/WHS H Operations $ On-going 

Traffic Enforcement Enhancement 

BADGES/AVOID 9 H Operations $ 

On-going 

16

Police Core Mission (Partial List) 

Abandoned Vehicle & Abatement Program 

Budget & Financial Management 

Crime – Traffic - Intelligence Analysis 

Crime Scene Investigations 

Crime Suppression – Prevention & Officer Initiated Activity 

61,643 Police calls for service & self-initiated activities FY 09-10 

7,188 Case Reports filed in calendar year 2010 

2,972 Adult and Juvenile arrests in calendar year 2010 

16,709 Moving and Parking citations issued in FY 09-10 

36 crimes per 1,000 crime rate in 2010, declined 15% from 2009 

Criminal Investigation 

Criminal Reports and Record Retention 

Criminal Registrants – Sex and Drug Offenders 

False Alarm Activations and Other Fee Payments for Services 

Field and In-Service Training Programs 

Fleet Management 

Grant Application, Program and Fiscal Management 

Internal Affairs 

Parking Enforcement and Administrative Review 

Permits & License (Taxi Cab, Amplified Sound, Tow Truck, Entertainment) 

Policy Manual /LEXIPOL 

Property & Evidence Processing, Retention, Retrieval, & Quality Control 

Public Information Officer 

Recruitment and Retention of Police Department Employees 


Traffic Enforcement, Prevention and Accident Investigation 

Uniform Crime Reports and Arrest Citation Register 

Vehicle Tow Review and Fee Program, Vehicle Releases 

Canine Program 

Chaplain Program 

Asset Forfeiture 

Crisis Negotiation Response 

Domestic Violence Data Collection & Reporting 

Downtown Drunk & Disorderly 

Graffiti Enforcement 

Guest Speaker Request 

Labor Negotiation/Contract Assistant 

Levee Camps 

Major Project Review Team 

Police Service Specialist Federal Grant 

Ride Along Program 

Santa Cruz Auto Theft Recovery & Enforcement 

Santa Cruz County Anti-Crime Team 

Santa Cruz County Office of Education ROP 

School Attendance Review Board 

Speaker’s Bureau 

Truancy Abatement Crime Suppression 

Volunteer Program Management 

Gang Violence Suppression (JAG) 

17



18 


When 

Completed 


Regional Pájaro River Flood Control 

Project 


Neighborhood Traffic Program M Admin/Engineering $ On Going 

Highway 1/Harkins Slough Road 

Interchange 


City Trails Master Plan (Grant) M Admin/Engineering $ 2012 

Neighborhood District Meetings M Admin/Engineering $$ On Going 

AB 32 Greenhouse Gas Reductions M Admin/Engineering $ On going 

Roof Top Solar Power Projects H Admin/Engineering $$ 12/11 

Large Scale Solar Projects at 

M Admin/Engineering $$$ On Going 

Landfill & Airport 

Freedom / Main Roundabout M Admin/Engineering $$ 12/13 

Ohlone/Beach Street Signal M Admin/Engineering $$ 12/11 

Pavement Maintenance Project M Admin/Engineering $$$ On Going 

Freedom Blvd. High To Lincoln 

Reconstruction 


Freedom Lincoln to Davis Design M Admin/Engineering $$$ 12/11 

Manabe/Burgstrom Wetlands 

Restoration Phase 3 


Integrated Waste Task Force M Admin/Engineering $ On Going 

Urban Greening Planning Grant M Admin/Engineering $ 12/12 

Implement Phase II Storm Water 

H Admin/Engineering $ On Going 

Program 

City Facility Storm Water 

Monitoring 


Watsonville Slough Restoration M Admin/Engineering $$ On going 

Labor Negotiations M Admin/Engineering $$$ On going 

TMDL Program For Drainage To 

M Admin/Engineering $ On-going 

Surface Water 

Pinto Lake 319h Grant M Admin/Engineering $ 12/12 

Pinto Lake C&A Grant M Admin/Engineering $ On Going 

Pinto Lake Invasive Species 


Monitoring 

CEC Funded LED Street Light 

Replacement 


PG&E 0% Loan LED Lighting 

Retrofit 


Wetland Trails Construction M Admin/Engineering $$ On Going 

Pinto Lake Toxin Testing M Admin/Engineering $ On Going 


Water Main Replacements H Admin/Water $$$ On Going 

Water Fluoridation Implementation M Admin/Water $$$ 9/12 

Corralitos Water Filter Plant 

Upgrade 

H Admin/Water $$$ 

Pursuing Grant 

Funding



When 

Completed 


SCADA Systems Upgrade H Admin/Water $$ 12/11 

Zone 2 Reservoir H Admin/Water $$$ On Hold 

Hames Reservoir Improvements M Admin/Water $$ 12/11 

Urban Water Management Plan M Admin/water $ 12/11 

Watershed Sanitary Survey M Admin/Water $ 12/11 

Toilet Retrofit Program M Admin/Water $ On Going 


Meter Reading Upgrade M Admin/Water $$ On Going 

Pajaro River Trails Project M Admin/Wastewater $ 12/12 

Fine Bubble Diffusers for Energy 

H Admin/Wastewater $$ 12/12 

Savings 

Materials Recovery Facility 

Modifications 

M Admin/Solid Waste $$$ On Hold 

Landfill GHG Monitoring & 

Reporting 

M Admin/Solid Waste $ On Going 

PDO Facility Improvements H Admin/Solid Waste $ 12/12 

Expansion of Commercial Recycling M Admin/Solid Waste $ On Going 

Recycle Audits M Admin/Solid Waste $$ On Going 

Implement New State Recycling 

Mandates 

M Admin/Solid Waste $ 12/12 

Design & Construct Airport Capital 

Improvement Projects 

H Airport $ On Going 

Acquisition of Armory M Airport $$ 12/12 

Traffic Calming for improved traffic 

flow 

H Admin/Engineering $$ On going 

19

Public Works & Utilities Core Mission (Partial List) 

Street And Sidewalk Maintenance 

Street Light System Maintenance 

Street Sweeping 

Coordinate Caltrans Projects Within City Limits 

Traffic Systems Maintenance 

Traffic And Transportation 

Capital Improvement Project Design 

Project Construction Management 


Graffiti Abatement 

Vehicle And Equipment Maintenance 

Environmental Education – (Classroom, Science Workshop, Nature Center, Facility 

Tours) 

Building And Facilities Maintenance 

Flood Control 

City Wide Safety Program 

Regional Water Systems Operation and Maintenance 

Regional Wastewater Treatment Facility Operation and Maintenance 

Landfill Operation and Maintenance 

Solid Waste and Recycling Collection 

Household Hazardous Waste Drop Off 

Public Drop-off Facility 

Wastewater Collection System (pipelines, pump stations) 

Stormwater Collection Systems (pipelines, pump stations) 

City laboratory Analytical Services 

Industrial Source Control Program 

Stormwater Pollution Prevention Program 

Underground Service Alert Utility Location 

Recycled Materials Processing 

Manage Airport Operations & Capital Improvements 

Oversee & Manage City Capital Improvement Projects 

20

Redevelopment and Housing 

Note: ―Redevelopment‖ includes Economic Development 



When 

Completed 


Storefront (Façade) Improvement 

Redevelopment $$$ 

M 

Program 


Ongoing 

Continuation of Downtown Streetscape 

Redevelopment, $$ 

M 

Improvement Plan 


2012-13 

Guaranteed Loan Program for business M Redevelopment 

$$$ 

Grant 

Ongoing 

Continued Implementation of Stoesser 

Alley Master Plan – Parking Lot & H Redevelopment $$$ 2012-13 

Trash Enclosure 

Extend Timeline For Enterprise Zone M Redevelopment $ 2012 

Develop Data & Resources for 

Industrial Property/Business 

Inventory of vacant and 

underutilized property 

Inventory of industrial 

businesses 

Information and marketing data 

for industrial property 

M Redevelopment, $ 2011 

Business outreach program H Redevelopment $ Ongoing 

Business Recruitment program H Redevelopment $ Ongoing 

36 Airport Road – mixed market rate 

and affordable housing project 

Sale of City or Agency property for use 

as affordable housing 

Assist in creation or preservation of 

affordable housing project 

Marketing/Underwriting for potential 

re-sale of affordable housing 

Implement Public Art Program, to 

include murals, artwork on utility boxes 

outdoor sculpture, etc. Explore 

promotion and enhancement of cultural 

resources and facilities. 

Targeted Neighborhood marketing for 

Housing Rehabilitation Program 

L Housing $ 2012 

VH 

VH 

Housing, 

Redevelopment 

Housing, 

Redevelopment 

$ 2012 

$ 2011-12 

M Housing. $ Ongoing 

M Redevelopment, $$ 2011 

M Housing $ Ongoing 

21


Business Assistance/Business Retention, Attraction, Expansion: 

Business Development Training: Act as resource, referral and provide funding for 

organizations that can provide business development assistance. 

Provide resources on the Economic Development Website 

Continue to support assistance to microbusiness through El Pájaro CDC 

Continue to Administer Commercial Loan Programs 

Site Location Assistance 

Maintain Database of Commercial/Industrial properties 

Business Visitation Program 

Enterprise Zone Operation: Outreach & Marketing 

Promote and participate with educational institutions in program to increase educational 

attainment and job skills training. 

Manage Civic Plaza Building Property Owner Association 

Manage leased premises in Civic Plaza & West Beach St Parking Garage 

Implement Redevelopment Plan – 

Public improvement programs serving the Redevelopment Project area 

Development assistance, as available and as authorized by the Community Redevelopment 

Law and the Redevelopment Plan 

Compliance with Redevelopment Implementation Plan 

Tourism Development 

Housing Rehabilitation Program: 

• Loans for Rehabilitation of Rental and Owner-Occupied Housing 

• Farmworker Housing Grants 

Homeownership Programs: 

• First Time Homebuyer Loans 

• Downpayment Assistance Loans 

Assist in the development of affordable rental housing 

Assistance with implementation of City Relocation Assistance Ordinance (for those displaced due 

to housing code violations in private housing) 

Affordable Housing Ordinance Implementation 

Grant Programs/Management 

Redevelopment Agency Housing Activities 

General Administration, Housing Programs: 

Housing Element 

• Implementation 

• Annual report to State Housing & Community Development Department 

22

Department Proposed New Initiatives and City Council Priorities 

23

Rank 

3 



Comprehensive Review and 

Update of Administrative Rules 

and Regulations 



When 

completed 

H Administration $$ 2011 

11 Keep City Employees Working VH Administration $$$ 

Social Media Network sites M Administration $ 2011 

Rank 

Finance 




When 

Completed 

2 

Implementation of new 

Enterprise Resource Planning 

(ERP) system 

H All Divisions $$$ 

Portions will 

be 

implemented 

as funding is 

allocated 

Rank 

Fire 


Internal 2011 Strategic Plan 



When 

completed 

9 

1. Continually enhance 

communications 

2. Attain resources to meet 

the needs of our constituents 

3. Succession planning 

H All $ 6/30/13 

24

Rank 

13 

Police 


Comprehensive Anti-Gang 

Strategies & Programs, 

Traffic Safety – Driver, 

Pedestrian, Bicyclist and Child 

Passenger – Party and 

Saturation Patrols, Responsible 

Hospitality 

Juvenile Diversion and Gang 


Crime Analysis 



H 

Operations 

Admin 

Services 

L Operations S 

L 

L 

Support 

Services 

Admin 

Services 

$ 

$ 

$ 

When 

completed 

Federal Grant 

Initiative 

10/1/2011- 

9/30/2014 

State Office of 

Traffic Safety 

Grant 

10/1/2011 – 

9/30/2013 





2 

Community Assessment of 

Gang Problem 

Criminal Justice Council – 

Focused on Gang Violence 

Problem Solving 

H 

H 

Admin 

Services 

Chief/ 

City Manager 

$ 

$ 

Phase 1- July 

2011; Phase 2 – 

December 2011 

Proposed policy 

level initiative that 

would be ongoing 

25

Rank 

13 

4 

Public Works 


Increase Funding for Street 

Maintenance 

Freedom Blvd Utility 

Undergrounding High to 

Lincoln 



M 

M 

Admin/ 

Engineering 

Admin/ 

Engineering 

When 

completed 

$$$ On-going 

$$$ 

2015 

Rank 

12 

Redevelopment & 

Housing 


Revitalize Industrial Core: 

Provide assistance to 

businesses in adapting to 

changes 

Provide public 

improvements as needed 

Establish industrial 

façade rehabilitation 

program 

Initiate purchase and resale of 

inclusionary housing in danger 

of being lost. 

Initiate planning, & possibly 

development, for workforce 

housing portion of Manabe-Ow 

property 

H 



When 

completed 

Redevelopment, $$$$ Ongoing 

H Redevelopment $$ 

M Housing $$ 

2011 

26

Watsonville City Council Proposed Initiatives & Final Scores 

1. Emergency preparedness 4 

2. Strategic Expenditure Reduction, including eliminating all non essential services 4 

3. Closure time in July 

4. Fee Study/Review Fees and increase as possible 6 

5. Identify new potential fees 3 

6. Reduce Over-time 2 

7. Departments to identify cost savings 3 

8. Broadband 8 

9. Re-route Hwy 152 3 

10. Improve crosswalk safety 3 

11. Improve Alleys 3 

12. Solar Energy 4 

13. Code Enforcement – Life safety (including garages) 7 

14. Green Jobs – Incubator 5 

15. Emission Reduction Grants 

16. Accept Payment for Parking Tickets 

17. (new) expand tourism, festivals and entertainment opportunities 2 

27

Appendix 

28

User Fee Study 

In order to address updating/reviewing the City’s fees for services, and to consider new fees, staff has 

recommended that the City Council consider authorizing a User Fee Study, which would be conducted by a 

consultant and cost approximately $50,000 to $75,000. It could be funded by the General Fund and 

Enterprises, including Redevelopment, since it would affect all user fees (for services offered), not including 

water/sewer/solid waste rates. 

This Study would review the City’s current cost recovery for services and would also analyze the new fees 

suggested by City staff during this process. The consultant would advise the City as to the legality of certain 

fees, what the true cost to deliver the service is, and what is recommended based on the City’s needs, other 

communities, etc. 

Some of the fees that could be considered include (these are only suggestions and do not represent new 

fees at this time): 

1. All current fees for services 

2. Charging for a person to pick up their confiscated firearm when the court dismisses the case and the 

court orders the guns released. 

3. Private Property Tows. 

a. We processed 71 Private Property Tows from January 1, 2011 to March 23, 2011. 

b. If we were collecting $20.00 for the Private Property Tows, we would have collected 

$1,420.00.Repossessed Vehicles 

2. We processed 95 Vehicle Repossessions from January 1, 2011 to March 23, 2011. The State allows 

Law Enforcement Agencies to charge $15.00 to the vehicle owner, before the vehicle can be 

released. Often the registered owner of the reposed vehicle is not going to the PD first but directly 

to the towing company and the result is the PD is not collecting the fee. The Towing Companies 

are supposed to send the registered owner to the law enforcement agency that received and 

entered the repossession information; and release the vehicle only when the registered owner 

shows the receipt for $15.00 from the law enforcement agency. 

3. Registration Fee: Charge a registration fee for all Sex, Narcotic, Arson, and Gang Registrations. 

Suspects are ordered by the court to register with us. 

4. Muni-Code Curfew Violation: we could issue a muni-code curfew violation for minor's being out 

after 10 pm. Have the parents pay the fine to WPD. No court date. Set a fine amount. 

5. Truancy: we could issue muni-code truancy violation for minors not attending school. Have the 

parents pay the fine to WPD. No court date. Set a fine amount. 

6. Missing Person Cases: Repeat Runaway Juveniles 

7. Court Fines: Ask the court to raise the fine amounts on all infractions, misdemeanor, and felony 

charges. 

8. Increase Ramsay carwash facility rental fee from $90 to $125. 

9. Implement After-school Drop-in Program Membership Fee ($5 monthly/$20 annual/$25 family) 

10. Establish contract with food vendors (portable kiosks) to sell food/beverages in the Parks (Ramsay, 

Franich & Callaghan) 

29

11. Increase rental fees of City Plaza 

12. Rent banner space at Ramsay Park softball and soccer fields & Callaghan Park 

13. Not renew Soccer Central Lease beyond June 30, 2012 and PCS assume operation of indoor sports 

leagues. 

14. Collect a fee for City and County new water service applications. 

15. Implement an “additional inspection fee” for those cases where the applicant is at fault for 

numerous “re-inspections”. 

16. Increase fee for foreclosure registration (currently $50) 

17. Charge for reports requested by vendors (of subscription services) for permit activity. 

18. Review “certified, receipt requested” mailing process. 

19. Charge for “stop work” citations 

20. Shop around for office products and buy bulk. Buying local, in small quantities is more expensive. 

21. Use Code Enforcement staff to cite for violation of water conservation measures contained in the 

Municipal Code (yard watering with non-drip during the day, water waste running down the 

sidewalk, etc.) 

22. Charge for handouts we currently give free (code sections, samples, etc.) 

23. Increase “address assignment” to recover all costs. Fee currently $61. 

24. Charge for Utility Field Service Calls (shut-off onsite notification, leak response, after3:30 response) 

25. Eliminate special event exceptions 

26. Install intelligent parking meters 

27. Institute changes for Interlibrary Loan: 

a. First 5 requests free, then charge $10 each (cost of each ILL is $40) 

28. Raise fine limit to $5.00 

29. Increase photocopy charges from $0.10 to $0.20 per copy. 

30. Initiate fee for researching past vouchers for Enterprise Zone Participants 

31. Initiate proposed fee increase for issuing EZ Vouchers 

32. Charge grants for staff time associated with loan processing and design 

33. Charge a fee for subordination and refinance requests for affordable/rehabilitation loans 

34. Initiate an inspection fee for first-time homebuyer properties 

35. Modify façade program to increase assistance, but structure as loan 

30

Environmental Assessment 

S.C.O.T. 

Strengths – Challenges – Opportunities - threats 

Strengths 

Community 

Diversity 

Fastest growing city in the Region 

Youth 

Community innovative/resilient 

Community used to public transportation 

Government 

Good Council 

City staff/Dedicated 

Relationships with State Officials 

Managed financial resources well 

Council- good communication 

Staff focused on big picture 

All employees work together to get things accomplished 

Rank and file employees have taken 2 years of furloughs voluntarily 

We are taking leadership roles in Regional Organizations 

Lack of bureaucrats in City organization 

Success in obtaining grants 

Community partnerships 

City is forward thinking/youth/environment 

Boldly take on challenges 

Confront internal/external issues 

Aware of communication issues – Emergency preparedness 



Public works-streets 

Advancements in technology – Wi-Fi 

Innovation – Green Policies 

Science workshop/Environmental education 

Graffiti abatement 

We are leaders in broadband effort 

Mello center – potential, downtown performance venue 

Staff leadership on Pájaro River Levee reconstruction 

31

Other 

Library provides wonderful services – schools and community 

New water treatment plant 

Infrastructure – Civic Plaza, Water Treatment Plant 

Disaster preparedness outreach 

Slough trail system – Eco Tourism – Slough Master Plan 

Other Central Valley cities having harder time 

Quality as Economically Disadvantaged Community 

Agriculture 

Mural program 

Local students attend best colleges in the country 

We live in desirable area, climate, weather 

Historic downtown, Plaza, Cabrillo College 

Green technology 

Prevention/education programs 

We live in 2 nd smallest county in state 

Challenges 

Fiscal 

Court Move 

Unemployment rate 

Financial/State takeaway/ Mortgage crisis 

Unfunded State mandates, especially water & storm drain 

Meet Capital Improvements (CIP) needs 

Litigation threats 

State budget 

Threat to RDA 

Federal funding for Army Corps for Levy 

City Budget deficit 

Pension costs 

Retail leakage 

Contract negotiations – asking staff for cuts Year 3 

Government 

Redistricting 

Maintain organization with no bureaucracy 

Fastest growing city in the county 

General Plan –Vista 2030 

Confronting issues that take away from Council focus 

Budget transparency 

Communication with the public 

Emergency preparedness and communicating threats to public 

32

Community 

Increase in gang violence 

Downtown development 

Young community 

Job creation 

Agricultural workers needed – Who will harvest? 

Brain drain – college graduates don’t return to City 

Educational attainment not high enough for some jobs 

More cohesiveness in community and other agencies 

How to make downtown more vibrant 

Home overcrowding 


Graffiti abatement – still a challenge 

Levy 

Levy improvements not coming soon enough and disagreement with 

Monterey and Santa Cruz County 

How to make the rest of levy safe for walking/bike 

Meeting our required park acreage 

Public transportation access – How do we maintain it? 

Highway 152 

Falling behind on technology – Finance software 

Deliver more library services to people in the City (not at library) 

Adequate code enforcement 

Traffic 

Parking city-wide. Too many cars 

Funding/continuing technology 

Implementation of fluoride 

Maintain public safety 

Landfill capacity 

Maintain infrastructure water/sewer/Fire Station 3 

Other 

Vacant homes 

Vast difference with North County about the needs of South County 

Board of supervisors not having meetings in South County 

Opportunities 

Fiscal 

Tap into funding for jail realignment 

Another round of incentives (Federal funds – type ARRA) 

Increase tourist dollars. Marketing of events 

33

Bulk purchase with other agencies 

Utility systems/capacity/ability to expand (i.e. Merge with Salsipuedes district) 

Advocate/showcase our excellent programs and projects (i.e. PIT) 

Retail improvement – resulting in more jobs 

Communication/Community 

Communication/engage with the public – expand media used for outreach 

(radio) 

More public input from community 

Engage community who has not been reached 

Engage voters/walk districts and talk to voters 

Increase civic engagement 


Downtown 

Wireless for cities 

Share bounty and wealth of agricultural innovations, opportunity to 

Provide services to agricultural entrepreneurs 

We own water – How do we increase aquifer ownership 

Infrastructure maintenance and upkeep/update 

Work with agriculture to help solve our water supply problem 

Government 

Council itself – experience and strength 

We are honest government and must continue / integrity 

Council doing the work to assess current City situation 

Reputation of City staff attracts good employees 

The culture of the City – must be protected 

Other 

Proximity to beach – use it to promote recreational activities/sports 

Create new collaborations with academic institutions 

Business friendly city 

Diversity 

Ignore threats of lawsuit if the service/program/project is worthwhile 

Threats 

Public Safety 

Jail realignment/Funds re-directed to County 

Reduced service levels, Police/Fire – State All-cuts budget 

State All-cuts budget – no funds for CIP/Police/Fire 

Retirements in Police Dept 

Fiscal 

State “All-cuts budget” impact on City 

National/Federal budget impact on City 

34

Loss of Federal earmarks 

Los of federal funds for river project 

Voter initiatives that could reduce revenue 

Lawsuits 

Litigation – Airport 

Community 

Drug & alcohol rehabilitation programs 

Maybe a disengaged public/Lack of buy-in 

Levee, if we don’t get it fixed 

Cuts to UC/CSU system would impact our community 

Lack of educational attainment in the community 

After-school program cuts 

Failing school system, Low educational attainment – 

Possible State takeover of local schools 

Mortgage crisis 

Reduced human services for families 

Misguided voter being given wrong information 

Labor 

Pensions 

Arbitration/labor 

Losing city employees to other cities 

Loss of Morale – after 3 rd year of negotiations 

Other 

Lack of water 

Traffic/State Highways running through the City 

What is “Transparency”? 

35

CITY COUNCIL/REDEV# 6.2 (r) 


(CM) 


WATSONVILLE REAFFIRMING AUTHORIZATION TO HIRE HOURLY 

FIREFIGHTERS TO REDUCE OVERTIME COSTS AS PRESENTED IN 

THE FISCAL YEAR 2011-12 / 2012-13 BUDGET 

WHEREAS, on or about February 22, 2011, the City Council appropriated 

$50,000 to fund hourly firefighters to reduce overtime costs; and 

WHEREAS, on May 24, 2011, the City Council received the FY 2011-12 / 2012- 

13 proposed Budget which included the Fire Department Cost Savings Plan; and 

WHEREAS, the City Council reviewed and conducted a public budget hearing on 

the Fire Department Cost Savings Plan as presented in the FY 2011-2012 / 2012-13 

budget on May 24, 2011, and June 7, 2011; and 

WHEREAS, the City has experienced an unprecedented loss of revenues due to 

the financial crisis in the national and local economies over the past several years which 

have yet to rebound and has experienced greatly increased costs due to rising pension 

costs charged to the City by CalPERS; and 

WHEREAS, on June 7, 2011, the City reached Tentative Agreement on 

compensation reductions, CalPERS contributions and pension reform with the 

International Association of Firefighters (IAFF), Local 1272 Bargaining Unit that obviated 

the need for the Fire Department Cost Savings Plan and prevented the layoff of 

firefighters; and 

WHEREAS, the budget reductions needed for the IAFF Local 1272 Bargaining 

Unit is approximately $528,000 of which about $431,000 will be realized through the 

Tentative Agreement resulting in a shortfall of $97,000 in FY 2011-12; and 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\Hire Fire Hourly.docx 

ri 6/9/2011 4:25:11 PM 

AJS ______ CJP ______ 

1

WHEREAS, consistent with its CalPERS contract, the City is within its 

Management Right to hire firefighters in hourly positions in order to reduce overtime 

costs and offset deficit. 



That the City Council hereby reaffirms the City’s Management Right and intention 

to hire hourly firefighters to reduce overtime costs and offset the deficit faced by the 

General Fund as presented in the FY 2011-12 / 2012-13 budget. 

********************************* 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\Hire Fire Hourly.docx 

ri 6/9/2011 4:25:11 PM 

2

CITY COUNCIL/REDEV# 6.2 (s) 

Page 1 

6 of 9 DOCUMENTS 

DEERING'S CALIFORNIA CODE ANNOTATED 

Copyright © 2011 by Matthew Bender & Company, Inc. 

a member of the LexisNexis Group. 

All rights reserved. 

*** THIS DOCUMENT IS CURRENT THROUGH URGENCY CHAPTER 25 OF THE 2011 SESSION *** 

SPECIAL NOTICE: CHAPTERS ENACTED BETWEEN OCTOBER 20, 2009, AND NOVEMBER 2, 2010, ARE 

SUBJECT TO REPEAL BY PROPOSITION 22. 

GOVERNMENT CODE 

Title 2. Government of the State of California 

Division 5. Personnel 

Part 3. Public Employees' Retirement System 

Chapter 8. Member Contributions 

Article 1. Normal Contributions 

GO TO CALIFORNIA CODES ARCHIVE DIRECTORY 

Cal Gov Code § 20691 (2010) 

§ 20691. Payment of contributions by contracting agency or school employer 

Notwithstanding any other provision of law, a contracting agency or school employer may pay all or a portion of 

the normal contributions required to be paid by a member. Where the member is included in a group or class of 

employment, the payment shall be for all members in the group or class of employment. If an individual is not part of a 

group or class, the payment shall be limited to the amount that the board determines is payable to similarly situated 

members in the closest related group or class, subject to the limitations of paragraph (2) of subdivision (e) of Section 

20636. The payments shall be reported simply as normal contributions and shall be credited to member accounts. 

Nothing in this section shall be construed to limit the authority of a contracting agency or school employer to 

periodically increase, reduce, or eliminate the payment by the contracting agency or school employer of all or a portion 

of the normal contributions required to be paid by members, as authorized by this section. 

HISTORY: 

Added Stats 1980 ch 1168 § 10, effective September 29, 1980, as Gov C § 20615. Amended Stats 1982 ch 863 § 

1.5; Stats 1993 ch 1297 § 16 (SB 53), operative July 1, 1994. Repealed Stats 1995 ch 379 § 1 (SB 541). Amended Stats 

1995 ch 830 § 3 (SB 159) (ch 830 prevails). Amended and renumbered by Stats 1996 ch 906 § 70 (SB 1859). 

NOTES: 

Former Sections:

Cal Gov Code § 20691 

Page 2 

Former § 20691, similar to the present section, was added Stats 1995 ch 379 § 2 and repealed Stats 1996 ch 906 § 

84. 

Amendments: 

1982 Amendment: 

Added "or school employer" wherever it appears. 


(1) Added the second sentence; and (2) substituted "The" for "Such" at the beginning of the third sentence. 


Added the third sentence of the first paragraph. 


Substituted "Section 20636" for "Section 20023" at the end of the third sentence. 

Historical Derivation: 

Former Gov C § 20614, as added Stats 1977 ch 601 § 1, amended Stats 1978 ch 1177 § 1. 

Cross References: 

"School employer": Gov C § 20063. 

Hierarchy Notes: 

Tit. 2, Div. 5, Pt. 3 Note

CITY COUNCIL/REDEV# 6.2 (s) 



WATSONVILLE IMPLEMENTING GOVERNMENT CODE SECTION 

20691 AND ELECTING TO PAY EMPLOYER PAID MEMBER 

CONTRIBUTIONS TO CALIFORNIA PUBLIC EMPLOYEES’ 

RETIREMENT SYSTEM (“CalPERS”) FOR CITY CLERK AND CITY 

MANAGER AND ALL EMPLOYEES IN THE CONFIDENTIAL UNIT, 

MANAGEMENT UNIT, MID-MANAGEMENT UNIT, SERVICE 

EMPLOYEES INTERNATIONAL UNION (SEIU)—LOCAL 521 CLERICAL 

TECHNICAL UNIT 

WHEREAS, the City of Watsonville has the authority to implement Government 

Code Section 20691; and 

WHEREAS, the City of Watsonville has a written labor policy or agreements 

which specifically provide for the inclusion of normal member contributions paid by the 

employer; and 

WHEREAS, one of the steps in the procedure to implement Section 20691 is the 

adoption by the City Council of the City of Watsonville of a resolution to commence said 

Employer Paid Member Contributions (“EPMC”); and 

WHEREAS, the City Council of the City of Watsonville has identified the following 

conditions for the purpose of its election to pay EPMC: 

1. This benefit shall apply to all the City Clerk and the City Manager and all 

employees in, Confidential Unit, Management Unit, Mid-Management Unit, and Service 

Employees International Union (SEIU)—Local 521 Clerical Technical Unit. 

2. This modification shall be effective on July 1, 2011. 



Reso No. (CM) 

Q:\COUNCIL\2011\061411\CALPers Contr 2011.docx 

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1

1. That the City Council of City of Watsonville hereby implements 

Government Code Section 20691 as follows: 

(a) 

That the City Manager and each employee in the Confidential Unit 

and Management Unit shall pay four percent (4%), and the City shall pay three 

percent (3%) of the seven percent (7%) of the normal contributions as EPMC. 

(b) 

The City Clerk and each employee in the Mid-Management Unit 

shall pay four percent (4%), and the City shall pay three percent (3%) of the seven 

percent (7%) of the normal contributions as EPMC. Effective July 1, 2012, and 

ending June 30, 2013, the City Clerk and each employee in the Mid-Management 

Unit shall pay five percent (5%), and the City shall pay two percent (2%) of the 

seven percent (7%) of the normal contributions as EPMC. 

(c) 

That each employee in the Service Employees International Union 

(SEIU)—Local 521 Clerical Technical Unit shall pay one (1%), and the City shall 

pay six percent (6%) of the seven percent (7%) of the normal contributions as 

EPMC. 

2. That the City Clerk is hereby directed to provide a copy of this resolution to 

CalPERS. 

******************************************** 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\CALPers Contr 2011.docx 

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2

CITY COUNCIL/REDEV# 6.2 (t) 





TO: 

FROM: 

SUBJECT: 



ADOPT A RESOLUTION AUTHORIZING AND SETTING FORTH 

INTERNAL LOAN TERMS AND CONDITIONS BETWEEN THE 

GENERAL FUND AND THE CITY’S POOLED MONEY 

INVESTMENT ACCOUNT OF UP TO $6,454,697 MILLION AND 

AUTHORIZING THE DEFEASANCE OF THE CALPERS SIDE 

FUNDS FOR PUBLIC SAFETY PLANS. 



That the City Council adopts a resolution authorizing and setting forth the terms and conditions 

between the General Fund and the City’s pooled money investment account for an internal 

loan of up to $6,454,697 with the City’s 12-month average pooled money portfolio rate for 13 

years and authorize the defeasance of the CalPERS Side Fund Public Safety plans. 

DISCUSSION: 

As part of a CalPERS action to consolidate plans with under 100 members with other 

agencies, the City’s’ Public Safety liabilities were each pooled by type with other agencies 

throughout the State. The liabilities at the time of the pooling for the City’s Fire and Police 

personnel were subsequently segregated and have an outstanding, combined balance of 

$6,454,697 at June 30, 2011. These debt obligations will continue forward for another 13 

years at interest rates that average 8.35% (between 7.882% and 8.788%). 

Current market conditions and portfolio cash balances allow this outstanding balance to 

essentially be refinanced through an internal loan at much lower interest rates. Traditionally, 

the City has refinanced debt through private placement loans or on the bond market. 

However, City staff have strategically planned for the opportunities to effectively refinance this 

and other prior loans using the City’s pooled money investment account. This action lowers 

the debt service rates while at the same time providing for a safe rate of return for the City’s 

pooled money account higher than other investment opportunities. 


Writer’s name 6/9/2011 9:00:53 AM 

P:\1Marc\DEBT - Financing\2011 Refi\CalPERS sidefund\SR_Interfund-loanf2_2011-0614.docx

The terms of the internal loan would be as follows: 

General Fund to borrow up to $6,454,697 to fully defease the CalPERS public safety 

side funds. 

The interest rate would tied to the 12-month average portfolio rate with a cap of 3.00% 

Term would be 13 years with payments due at least once each June 30th 

No pre-payment penalty or reserve requirement 

No external insurance or reporting requirements 

The annual interest rate will be adjusted each July according to the City’s prior 12-month 

period’s average pooled money portfolio rate. This will allow the portfolio to achieve its 

earnings target with a maximum ceiling slightly above the current average 2.84% rate of a 10- 

year US Agency and US Treasury note. Prior portfolio loans included within the rate a 0.5% 

administrative rate payable to the General Fund. However, since payer and recipient of the 

administrative rate are both the General Fund, it was excluded from this loan. 

The City’s Investment Policy allows the City to “purchase” such loans in excess of a 5-year 

period with City Council authorization. The pooled money account was recently used twice 

during 2010 to issue internal loans of $2.8 million and $1.3 million to the Water Enterprise 

Fund and the Airport Enterprise Fund to pay off their respective external debt issues. This 

proposed action was a planned purchase and therefore sufficient capacity remains available 

within the pooled money account for this investment. With current yields at historical lows, the 

pooled money account will retain investments as they mature in order to payoff other debt 

issues held by the City to improve yields and lower the City’s interest costs. 


This will support the Community Resources strategic goal by provide additional savings to the 

General Fund to maintain its operations. 


This action will provide the required cash flow savings of an estimated $272k to balance the 

projected $1.93 Million General Fund 2011-2012 projected deficit. By avoiding an external 3 rd 

party refinance, the General Fund will save at a minimum $40,000 in issuance costs. In 

addition, instead of the interest payments being paid to the State of California, they will be paid 

to and retained by the City within its pooled money investment account. 

ALTERNATIVES: 

The City Council could direct staff to take the refunding to the private market. However, this is 

not recommended as the City will incur at a minimum an additional $40,000 in direct legal and 

related issuances costs, in addition to our internal legal time. In addition, the General Fund 

could continue to pay a higher interest rate through the life of the loan to the State of 

California. 

ATTACHMENTS: 

None 

cc: 

City Attorney 


Writer’s name 6/9/2011 9:00:53 AM 

P:\1Marc\DEBT - Financing\2011 Refi\CalPERS sidefund\SR_Interfund-loanf2_2011-0614.docx

CITY COUNCIL/REDEV# 6.2 (t) 


RESOLUTION OF THE CITY COUNCIL OF THE CITY OF 

WATSONVILLE SETTING FORTH INTERNAL LOAN TERMS AND 

CONDITIONS BETWEEN THE GENERAL FUND AND THE CITY’S 

POOLED MONEY INVESTMENT ACCOUNT FOR AN INTERNAL LOAN 

OF UP TO $6,454,697 MILLION AND AUTHORIZING THE CITY 

MANAGER TO PREPAY THE CALPERS POLICE AND FIRE SIDE 

FUNDS 

WHEREAS, at June 30, 2011, the General Fund’s California Public Employee 

Retirement System’s (CalPERS) Police and Fire “Side Funds” have a cumulative 

balance of $6,454,697 at interest rates between 7.882% and 8.788% for a period of up 

to 156 remaining months; and 

WHEREAS, the City has from time to time refinanced its obligations through 

private placement loans or the bond market; and 

WHEREAS, the City’s Finance Department continually evaluates current financial 

market conditions to determine whether it is feasible and prudent to exercise its options 

to purchase said obligations in accordance with the City’s Investment Policy; and 

WHEREAS, there is presently an opportunity for the City to use its pooled money 

investment account to exercise said options thereby reducing the interest rate on debt 

service payable from the General Fund and increase the interest return on funds held in 

the City’s pooled money investment account; and 

WHEREAS, the City’s Investment Policy requires the City Council approve 

investments with a maturity of more than 5 years (60 months); and 

WHEREAS, the City’s Administrative Services Director has recommended that 

the Council authorize said transaction. 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\Defeasance of CalPers Fund.docx 

ri 6/8/2011 3:58:27 PM 


1



1. The City Manager and Administrative Services Director are hereby 

authorized to transfer not more than $6,454,697 from the City’s pooled money 

investment account to fully purchase said CalPERS side fund liabilities described above. 

2. Said transfer shall be accounted for as a loan from the City’s pooled money 

investment account to the General Fund. 

3. The terms of said loan account shall be a variable interest rate that shall be 

set each July according to the City’s prior 12-month period’s average pooled money 

portfolio rate with a maximum cap of 3.00%, payments due at least once every June 30 th 

and with a term of 156 months, at which time the entire balance of interest will be due 

and payable and that there shall be no pre-payment penalty or reserve requirement. 

4. The City Manager and Administrative Services Director are hereby 

authorized to execute any documents and do all other things necessary and proper to 

accomplish the payment of said side fund liabilities and account from the City’s Pooled 

Money Investment Account to the City’s General Fund. 

******************************** 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\Defeasance of CalPers Fund.docx 

ri 6/8/2011 3:58:27 PM 

2

CITY COUNCIL 8.1 (a) 


City Attorney’s Office 



TO: 

FROM: 

SUBJECT: 

City Council 

Ad Hoc Ethics Committee 

Code of Ethics Investigation Report Regarding Mayor Dodge, 

Council Member Bersamin, and Library Board Trustee Rivas 


DISCUSSION: 

Councilmember Martinez filed three separate ethics complaints. One on April 29, 2011, a 

second on May 2, 2011 and a third on May 3, 2011. All three are for conduct which occurred 

during Council meetings. 

The first is against Mayor Dodge for statements he made during the April 26, Council meeting 

after Gabriel Gonzalez spoke during “Comments from the Public.” Mr. Martinez filed the 

second complaint on May 2 against Antonio Rivas for calling Mr. Martinez a coward during the 

March 22 City Council meeting and because Mr. Martinez says Mr. Rivas has a history of 

acting uncivilly (sic) and being rude to the public. Mr. Martinez filed a third complaint against 

Councilmember Bersamin based on a March 24 letter from Nick Bulaich alleging 

Councilmember Bersamin “used students" to make a rhetorical point during the March 22 

Council meeting. 

The Committee requested transcripts of the words spoken at each of the three meetings and 

received transcripts. Copies of the transcripts and the complaints are attached to this staff 

report. The Committee then met to consider the transcripts and determine whether the words 

spoken and the context in which the words were spoken violated any one or more provisions of 

the Code of Ethics. 

The Mayor's statements after Mr. Gonzalez spoke on April 26 were perhaps not well chosen. 

The Committee recommends a resolution of Admonition regarding the Respect Clause of the 

Code of Ethics encouraging the Mayor and the entire Council to, as Councilmember Hurst 

says, “disagree without being disagreeable.” 


Q:\COUNCIL\2011\061411\Ethics Investigation Staff Report.docx 


Mr. Rivas’ March 22 statements occurred in a public meeting, which while perhaps impolite, 

were part of Mr. Rivas acting as a member of the public and commenting on Mr. Martinez’ 

performance as a Council member. In the Committee's opinion Mr. Rivas’ statements do not 

violate the Code of Ethics. The Committee determines that this ethics inquiry is not well 

founded and recommends no further action. 

Mr. Bersamin's March 22 statements did not violate the Code of Ethics because Mr. 

Bersamin’s statement that Mr. Bulaich "used" the students was a figure of speech, a rhetorical 

devise, and should not be taken literally. Such statements are not a violation of the Code of 

Ethics. The Committee determines that this ethics inquiry is not well founded and recommends 

no further action. 

ATTACHMENTS: 

1. Resolution No. 27-11 (CM) 

2. Complaints 

3. Transcriptions 

cc: 

City Attorney 


Q:\COUNCIL\2011\061411\Ethics Investigation Staff Report.docx 


ATTACHMENT 1 


ATTACHMENT 1 


ATTACHMENT 1 


ATTACHMENT 1 


ATTACHMENT 1 


ATTACHMENT 1 


ATTACHMENT 2 


ATTACHMENT 2 


ATTACHMENT 2 


ATTACHMENT 2 


ATTACHMENT 2 


Verbatim transcription of audio recording of April 26, 2011 City Council Meeting 

Gabriel Gonzalez: Good evening, ah, Council and Mayor, talk about following protocol you’ve yet to ask 

anybody for their name or where they reside. So if you can give me a proration on the time, go ahead. 

Mayor Dodge: Sure you have two minutes forty seconds, continue on. 

Gabriel Gonzalez: If Mr. Bersamin wants to kill the mike that’s fine works for me. Ok, ah first and 

foremost I would like to thank Chief Bisbee ah for the great job he and his ah department did fighting ah 

the fire we just recently had. Ah and let’s get down to business, um I don’t see the Alonzo’s here today, 

they were attacking Mr. Martinez and that’s just a straight out attack. If Mr. Martinez ah is guilty of 

anything he is guilty of speaking the truth and if speaking the truth and speaking the facts is a crime well 

then guess what I’m a criminal too. Plain and simple ah you guys are sending the wrong message. When 

you have somebody that is recently elected don’t matter if he served on the planning commission 

become Mayor that’s a wrong message. When you have somebody that’s a rookie to Watsonville politics 

become Mayor Temp Pro Temp or whatever Vice Mayor you want to call it that is sending the wrong 

message to our community. If you wanted to send the right message ah if anybody ah is got the 

experience to serve as Mayor and Vice Mayor currently it would be Mr. Martinez and Dr. Council woman 

Bilicich. Ah and I feel that I am being harassed. Yesterday I was taking care of a legal issue on the third 

floor Department B when I saw Mr. Carlos Palacios not just I somebody else saw him peaking through 

the window. And ah the honorable Judge Salazar was shocked to hear that. Mr. Palacios ah you are 

making way too much money to be doing that, ah it might just be an allegation but somebody else 

witnessed it. Ah and about fluoride perhaps we might have an Assembly Member here in the chamber 

that can raise their hand ah perhaps he took some money from the California Dental Association I don’t 

know if he did he can raise his hand. So I welcome you all to do what Congressman Sam Farr has done 

and have a town hall meeting where everybody is not limited just to three minutes because if you Mr. 

Dodge have to cut somebody off at three minutes when you give one of your alias seven minutes that is 

also sending the wrong message. I would also like to thank the Watsonville Police Department ah right 

behind me, ah Lieutenant McCartney and ah Mr. George Zamora whom do a wonderful job. I also went 

to school with Mr. Montalvo, they do a great job so does Mr. Solano. But let’s speak the facts, let’s 

speak the facts. (Timer goes off). Go ahead kill the mike I’m done. 

Mayor Dodge: You’re beyond done brother. (clapping) Well that was quite the exhibition wasn’t it? 

ATTACHMENT 3 


Verbatim transcription of audio recording of City Council March 22, 2011 Meeting 

Antonio Rivas: Good Evening Mayor, City Council Members my name is Antonio Rivas from the City of 

Watsonville. I would like to convey to you that I was able to communicate to our City Sister 

Mayor/Headman of Kawakami Fujimara and I would like to say to you now that they are doing well. 

During the tsunami they were very far away from the Tsunami so the community at Kawakami is doing 

very well. I was able to get a translation by Dr. Ogino to talk to the Vice Mayor there in Kawakami to 

discuss how we can be able to help and assist our Sister City as well as the residents of Japan. One of the 

things we said is that anything that we can be able to do do Dr. Ogino is going to Kawakami which he 

travels back and forth to Japan if any donations that we, I’m asking the City to be able to come out with 

some funding. To give to the Sister City of Kawakami in which our Mayor of Kawakami Fujimara will be 

able to give that financial assistance to the Cities that are more devastating. Our the Mayor of Kawakami 

Fujijara is now in charge really he is the headman of all the Mayors in Japan so he is a very powerful man 

right now to be able to provide and to give the assistance that we can give from the City of Watsonville. 

So any money that comes from the City I think that we can be able to come up with some money some 

funds and be able to give that donation to our Sister City in which entails they can be able to give to 

those devastating Cities that has happened with the Tsunami incident. So with that I would like to the 

Mayor to be able to and our City Manager to be able to come up with some type of funding for that or if 

not you know every City Council Member can be able to donate at least you know $100, $500, $1000 is 

possible to the devastation of the Tsunami. So I’m asking that if you do please contact me and whenever 

Dr. Ogino goes to Kawakami we can be able to give a check to be taken to the Sister City of Kawakami 

which entails will go directly to the people of Japan. That is something that I would like to ask of you. 

The other thing is that I just wanted to invite you to also at the same time let me this is another 

important fundraiser. We are going to be having a pancake breakfast fundraiser for the Friends of the 

Library. It’s going to take place April the 9 th and I would like to see every single Council Member to buy a 

ticket $7 dollars a ticket so I have tickets also so if you don’t please let me know. A breakfast to be able 

to provide books to our local schools it’s very important that we do that and support our friends of the 

library. The other thing that I would like to just very short I would like to as the former Mayor as well as 

City Council members I would like to let being that Mr. Martinez is not here like always being a coward 

to face the people I would like to see that the statements that he has done in the newspaper to our staff 

to administration of the City of Watsonville is uncalled for. It’s one of the things that we have the best 

professionals in our City of Watsonville to provide the best services in our City of Watsonville. ? with 

that I would like to say to support, it is time that Mr. Martinez to start calling names to anybody else and 

also at the same time making untrue statements and it’s time that he as an elected official resign for his 

position. Because instead of helping our City of Watsonville he is damaging our image of the City of 

Watsonville. As an elected official never in my life have I seen a malicious bully as a City Council 

Member. It is a disgrace it is something that I have never experienced. Whispers when I was on the City 

Council as Mayor but now he is getting worse he is getting worse. It is time that he resigns and I hope 

that his district can be able to see the kind of person that got elected. It’s time that he himself instead of 

getting a recall to resign its cheaper that way. And get away last Council meeting he didn’t come in as 

well as now and not facing the people. Really what really bothered me is when he starts attacking a 

community member Mr. Alonzo really really is very uncalled for. So with that I hope you can be able to 

ATTACHMENT 3 


come up with City money for the Sister City of the City of Watsonville as well as all of you can come to 

Applebee’s that’s where it’s going to be a breakfast from 7:30 to 11:00 so you can be able to have a nice 

breakfast at the same time buy a ticket from me and I think we have some friends from the Library right 

here to be able to assist. Thank you and good night. 

ATTACHMENT 3 


Verbatim transcription of audio recording of City Council March 22, 2011 Meeting 

Member Bersamin: 

Well first of all Delia you can ah you have the right to request time for a presentation. Just request it 

from the Mayor I’m sure he’ll give you the time. Um one thing I want to say is that the issue that Mr. 

Bulaich is talking about normally I will not address because the City has a great deal of new business. But 

what ah has me concerned is when he uses the fact when Ms. Mendez sends her students to help make 

points. So I’m going to take the unusual step of addressing him this evening. First Mr. Bulaich this 

process took the City ten years the City defended Measure S which was your successful initiative to stop 

fluoridation. We did that three times at the Superior Court at the Appellate Court and we took it all the 

way to the State Supreme Court. Each time the Court founded that your initiative is superseded by 

California law. At this point the City went into negotiations for four years with the State of California 

and that forced us in the end by order of Governor Schwarzenegger and the Department of Public 

Health to move toward fluoridation. The State said to us in the end if you do not fluoridate we will fine 

you $200 a day. The Ad-Hoc Committee met and we did not force the contract, we took time to go over 

the contract, Council woman Bilicich was a part of it, we did not rush it. I would say to you that um the 

City has closure on this issue. You might not have closure and I’m happy to sit here as you attack me 

personally but I will tell you this right away, don’t use students to make your point. As a former high 

school teacher with my former government teacher in the audience I’ll say to you it does you no good to 

use students, make your point and if I don’t address it it’s because this Council has a severe budget crisis 

to take care of and I do not want to use City time. I will let the students know ?, I come from farm 

worker family, there are two Watsonville’s in this town. One is for those folks that have dental insurance 

and that who can fight for dental care. The other one is para nosotros que no hablamos bien el ingles 

mucho de nosotros no tenemos documentos y no tenemos aceso a aseguranza de los dientes. Those 

kids that comes from families that don’t have dental insurance who don’t have parents who can speak 

up for them in English to dental insurance companies those kids have just as much right to dental care as 

anybody else. So am I in favor of fluoride? You better believe it. Our young kids in this town have a 

dental care epidemic. If you go to any of the primary schools in the City the teachers will tell you that 

many kids come to the classes and they are complaining of dental problems. This town is an ag town 80- 

90% of the people who do the work in the fields are undocumented and many of them don’t have 

access to that care. Salud Para La Gente the County Health Services, the Health Trust for Watsonville 

Community they are all telling us that there is a dental care epidemic amongst our young people. Do we 

need fluoridation? Hell yes we do. And I’m not going to apologize for that if you want to come back and 

waste my time you certainly can but I will not address you again. You are wasting the City’s time, your 

issue is closed. Thank you Mayor. 

ATTACHMENT 3 


CITY COUNCIL/REDEV# 8.1 (e) 


(CM) 


WATSONVILLE APPROVING RESOLUTION OF ADMONISHMENT 

REGARDING PUBLIC COMMENT 

WHEREAS, on February 8, 2011, the City Council reaffirmed the City of 

Watsonville City Council Code of Ethics and Values and Penalties for Violations by 

adopting Resolution 27-11 (CM); and 

WHEREAS, on or about April 26, 2011, Councilmember Martinez filed an ethics 

inquiry into the statements made by Mayor Dodge; and 

WHEREAS, Mayor Dodge appointed Council Members Rios and Montesino to an 

ad hoc ethics subcommittee to investigate the complaint; and 

WHEREAS, the subcommittee considered the statements by Mr. Gonzalez and 

the statements following by Mayor Dodge; and 

WHEREAS, based on the information available, the subcommittee finds that the 

statements by Mayor Dodge seemed to be intended to be a measured response to Mr. 

Gonzalez’ message in a public meeting in which debate is appropriate and proper; and 

WHEREAS, the Council nevertheless finds that a Resolution of Admonition is 

appropriate under these circumstances and might benefit all concerned. 



1. That the City Council hereby adopts this Resolution of Admonition and 

finds that statements and comments which disparage or dampen public debate are 

inconsistent with the Code of Ethics and should be discouraged. 

******************************* 

Reso No. (CM) 

Q:\COUNCIL\2011\061411\Admonition Ethics Committee.docx 

ri 6/9/2011 6:24:29 PM 

AJS ______ CJP ______ 

1

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