WHEREAS - Watsonville California

AGENDA 

CITY OF WATSONVILLE 

CITY COUNCIL 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 Antonio Rivas , Council Member, District 3 

Mayor Pro Tempore Luis Alejo, District 2 

Manuel Quintero Bersamin, Council Member, District 1 

Kimberly Petersen, Council Member, District 4 

Greg Caput, Council Member, District 5 

Emilio Martinez, Council Member, District 6 

Nancy A. Bilicich, Council Member, District 7 

Carlos J. Palacios, City Manager 

Alan J. Smith, City Attorney 

Beatriz Vázquez Flores, City Clerk 

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. 

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

AGENDA 


REGULAR CITY COUNCIL MEETING 

May 26, 2009 

City Council Chambers 

4:00 P.M. 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.) 

1.0 ROLL CALL 

8.0 NEW BUSINESS 

8.1 SOCIAL SERVICE & COMMUNITY SERVICE GRANTS (Recommended by 

Mayor Ad-Hoc Subcommittee) 

(a) City Council Subcommittee Report 

(b) Human Care Alliance (HCA) Presentation (30 minutes) 

(c) Social Services Presentation by Non-HCA Members (1 minute each) 

(d) Community Services Presentation (1 minute each) 

(e) Public Input 

(f) City Council Questions & Discussion 

(g) Motion Accepting Report 

5:00 P.M. 

10.1 CLOSED SESSION 

(City Council Conference Room, 275 Main StreetB4th 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 

6:30 P.M. SESSION 

3.1 ORAL COMMUNICATIONS FROM THE PUBLIC & CITY COUNCIL 

(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 

O:\Agendas\2009\CC05-26-09.Docx 

5/22/2009 9:19 AM 

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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.) 

3.2 PRESENTATION OF MAYOR’S PROCLAMATION TO GINA CASTAÑEDA FOR 

BEING A JEFFERSON AWARD HONOREE 

3.3 REPORT OUT OF CLOSED SESSION 

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. 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 ACCEPTING & FILING MINUTES OF APRIL 28 & MAY 12, 2009 

4.2 MOTION APPROVING REPORT OF DISBURSEMENTS 

4.3 MOTION ACCEPTING APRIL 2009 INVESTMENT REPORT (Recommended by 

Administrative Services Director) 

4.4 RESOLUTION REJECTING CLAIM FOR DAMAGES OF ANTONE G. BASICH 

(Date of Occurrence: 4/3 & 4/23/09) 

4.5 RESOLUTION AWARDING $109,960 BID TO THE DON CHAPIN COMPANY 

FOR AUTO CENTER DRIVE PEDESTRIAN IMPROVEMENTS PROJECT NO. 

TR-08-02 (Recommended by Public Works & Utilities Director) 

4.6 RESOLUTIONS APPROVING AGREEMENT WITH PAJARO VALLEY UNIFIED 

SCHOOL DISTRICT FOR USE OF WATSONVILLE HIGH SCHOOL POOL FOR 

CITY’S 2009 SUMMER AQUATICS PROGRAM (Recommended by Parks and 

Community Services Director) 

4.7 RESOLUTION APPROVING SIDE LETTER TO CITY CLERK AGREEMENT 

4.8 RESOLUTION APPROVING SIDE LETTER TO CITY MANAGER AGREEMENT 

4.9 RESOLUTION RATIFYING MEMORANDUM OF UNDERSTANDING WITH 

CONFIDENTIAL UNIT FOR FISCAL YEAR 2009-2010 


MANAGEMENT UNIT FOR FISCAL YEAR 2009-2010 


MID-MANAGEMENT UNIT FOR FISCAL YEAR 2009-2010 


5/22/2009 9:19 AM 

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OPERATING ENGINEERS LOCAL UNION NO. 3 FOR EMPLOYEES IN 

THE PUBLIC WORKS UNIT FOR FISCAL YEAR 2009-2010 

4.13 WATSONVILLE POLICE OFFICERS ASSOCIATION UNIT FOR FISCAL 

YEARS 2009-2012 

(a) RESOLUTION RATIFYING FIRST AMENDMENT TO 

MEMORANDUM OF UNDERSTANDING WITH WATSONVILLE 

POLICE OFFICERS ASSOCIATION UNIT FOR FISCAL YEARS 

2009-2012 

(b) 

RESOLUTION APPROVING SIDE LETTER TO MEMORANDUM OF 

UNDERSTANDING FOR FISCAL YEAR 2009-2012 WITH 

WATSONVILLE POLICE OFFICERS ASSOCIATION UNIT 

4.14 PUBLIC SAFETY MID-MANAGEMENT UNIT FOR FISCAL YEARS 

2009-2012 

(a) RESOLUTION RATIFYING FIRST AMENDMENT TO 

MEMORANDUM OF UNDERSTANDING WITH PUBLIC SAFETY 

MID-MANAGEMENT UNIT FOR FISCAL YEARS 2009-2012 

(b) 

RESOLUTION APPROVING SIDE LETTER TO MEMORANDUM OF 

UNDERSTANDING FOR FISCAL YEAR 2009-2012 WITH PUBLIC 

SAFETY MID-MANAGEMENT UNIT 

4.15 RESOLUTION RATIFYING A MEMORANDUM OF UNDERSTANDING 

WITH SERVICE EMPLOYEES INTERNATIONAL UNION (SEIU), LOCAL 

521, CLERICAL TECHNICAL UNIT FOR FISCAL YEAR 2009-2010 

4.16 RESOLUTION APPOINTING GAIL OLSON TO CITY OF WATSONVILLE 

LIBRARY BOARD (District 7) 

4.17 FINAL ADOPTION OF ORDINANCE ADDING NEW SECTION 1-5.02 

(PROHIBITIONS ON ELECTIONEERING) OF TITLE 1 (GENERAL 

PROVISIONS) OF WATSONVILLE MUNICIPAL CODE 

4.18 MOTION CANCELLING CITY COUNCIL MEETINGS ON JULY 14 & JULY 28, 

2009 

4.19 MOTION APPROVING ATTENDANCE REQUEST BY MAYOR PRO TEMPORE 

ALEJO TO ATTEND 26 th ANNUAL NATIONAL ASSOCIATION OF LATINO 

ELECTED AND APPOINTED OFFICIALS (NALEO), JUNE 25 THROUGH JUNE 

27, 2009, PASADENA, CA ($1,537.44) 

4.20 MOTION APPROVING ATTENDANCE REQUEST BY MAYOR RIVAS TO 

ATTEND 26 th ANNUAL NATIONAL ASSOCIATION OF LATINO ELECTED AND 

APPOINTED OFFICIALS (NALEO), JUNE 25 THROUGH JUNE 27, 2009, 

PASADENA, CA ($1,081.18, MAYOR RIVAS TO REIMBURSE CITY $290.96) 


5/22/2009 9:19 AM 

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5.0 ITEMS REMOVED FROM CONSENT AGENDA 

7.0 UNFINISHED BUSINESS 

7.1 RESULTS OF CITY COUNCIL RANKING PROCESS FOR STRATEGIC 

PLAN FISCAL YEARS 2009-2011(Recommended by Assistant City 

Manager) 

(a) Staff Report 

(b) City Council Discussion & Questions 

(c) Public Input 

(d) Resolution Approving Strategic Plan for Fiscal Year 2009-2011 

8.0 NEW BUSINESS (Continued) 

8.2 BUDGET STUDY SESSION FOR FISCAL YEARS 2009-20011 (Administrative 

Services Director) 

(a) Staff Report 

--General Fund 

(b) City Council Questions & Discussion 

(c) Public Input 

(d) Motion Receiving Report 

(e) Resolution Approving Policies for Volunteer Hour Reduction and Early 

Retirement Incentives 

8.3 EMERGENCY ITEMS ADDED TO AGENDA 

10.0 ADJOURNMENT 

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. 


5/22/2009 9:19 AM 

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INFORMATION ITEMS 

May 26, 2009 

1.0 MINUTES 

Personnel Commission 

--October 9, 2008 

Library Board 

--April 19, 2009 

2.0 AMBAG 2009/11 STRATEGIC PLAN

M I N U T E S 

PERSONNEL COMMISSION 

October 9, 2008 CITY MANAGER’S CONFERENCE ROOM 5:30 p.m. 

1.0 ROLL CALL 

COMMISSIONERS PRESENT: 

COMMISSIONERS ABSENT: 

OTHERS PRESENT: 

Carter, Danna, Franotovich, Garcia, Mendez and 

Preciado 

Corley 

Assistant Director of Public Works and Utilities Bob 

Geyer, Water Division Manager Steve Palmisano, 

Assistant to the City Manager Nathalie Manning and 

Personnel Analyst Frances Delfino 

2.0 APPROVAL OF MINUTES 

A motion was made by Commissioner Franotovich, seconded by Commissioner Danna, and 

carried to approve the Minutes of May 8, 2008. 

3.0 OLD BUSINESS 

None 

4.0 NEW BUSINESS 

4.1 Election of Chairperson 

4.2 Election of Vice-Chairperson 

(Due to only four Commissioners present at the beginning of the meeting, a motion was 

made by Commissioner Carter, seconded by Commissioner Franotovich and carried to 

postpone the election of Chairperson and Vice-Chairperson to the next meeting.) 

4.3 Approval of new job classification and job description for Utilities Electrical/Instrumentation 

Technician I/II at Salary Ranges 21-09 and 21-71 

Manning introduced Geyer and Palmisano to the Commission. Palmisano proceeded to 

give a brief history of the Public Works and Utilities Department as it relates to Water and 

presented the staff report recommending approval of the two new classifications. He 

stated that the Utilities Department consists of three divisions: Water, Wastewater and 

Solid Waste. He said that at the present time, Water Operators can monitor the water 

system from laptops at home. However, because technology is growing, he advised that 

the system has become more complex and specialized. Palmisano stated that currently 

the Water Operators and outside consultants monitor the system. He advised that the 

new job classifications of Utilities Electrical/Instrumentation Technician I/II will provide the 

skills in the installation, programming and maintenance of the sophisticated control 

systems. 

After a brief discussion with Commissioners Danna, Preciado, Garcia and Mendez relating 

to the requirements of the position and the current budget situation, a motion was made by 

Commissioner Danna, seconded by Commissioner Garcia and carried to approve the new 

job classification and job description for Utilities Electrical/Instrumentation Technician I/II at 

Salary Ranges 21-09 and 21-71. 

5.0 CHAIRPERSON’S REPORT 

Chairperson Mendez stated that since two more Commissioners are in attendance, she’d like to 

request that the elections take place. A motion was made by Chairperson Mendez, seconded by 

Commissioner Garcia and carried to nominate and elect Commissioner Danna as 

Vice-Chairperson. A motion was made by Commissioner Preciado, seconded by Vice-Chair 

Danna and carried to nominate and re-elect Chairperson Mendez. 

5/19/2009 (5:00PM)\10 9 08 minutes

6.0 PERSONNEL DIRECTOR’S REPORT 

Manning spoke about the City’s current recruitments and positions that have been recently filled. 

7.0 ORAL COMMUNICATIONS 

Commissioner Franotovich wanted to commend Mariaelena Tantalo, Senior Administrative Analyst 

and her staff from the Neighborhood Services Division of Parks and Community Services in doing 

excellent outreach for the Neighborhood Watch Program. 

Chairperson Mendez also wanted to give kudos to Ilda Estrada of Parks and Community Services 

for doing an outstanding job in reserving the Community Room for her recent event there for the 

Pajaro Valley Unified School District. 

8.0 ADJOURNMENT 

A motion was made by Commissioner Carter, seconded by Commissioner Preciado and carried to 

adjourn the meeting at 6:22 p.m. 

ATTEST: 

__________________________________ 

Chairperson 

__________________________________ 

Personnel Director 

5/19/2009 (5:00PM)\10 9 08 minutes

"Gather, Learn and Celebrate!” 

Minutes 

Regular Meeting 

Board of Library Trustees 

Thursday, April 19, 2009 

1.0 

6:00 P.M. 

Library 2 nd Floor Conference Room 

275 Main Street, Watsonville 

1.0 Roll Call 

Members present: Hiraga, Jenkins, Perez and Vasquez. 

Staff members present: Carol Heitzig, Library Director and Luz Martinez, Administrative Assistant. 

2.0 Approval of Minutes 

Minutes of March 19, 2009 were approved as written. 

3.0 Communications 

3.1 Communications from the Public or Trustees 

Trustee Mays resigned her position as Library Board Trustee. There are two vacancies on the 

Library Board - district one and district seven. 

3.2 Oral Communications from the Library Director 

Library Director distributed invitations to the Library programs and encouraged the Library 

Board members to attend. 

We have agreed to allow representatives from the HDTV to promote and help prepare 

community members for the transition they will be here for a total of six days, three days in May 

and three days in June. 

4.0 Unfinished Business 

4.1 Fines increase proposal and discussion 

After a brief discussion the Library Board voted to change fine for all materials to 25 cents day 

and maximum charge to three dollars. The new fine policy will go into effect July 1, allowing 

plenty of time to notify and inform patrons. The Library Director will purpose to the City 

Manager to have an amnesty period at their next meeting. 

1 of 2

4.2 Age limit to receive library card proposal and discussion 

The Library Director and Library Board decided to take a little more time collecting information 

from the surrounding libraries before they decide to vote on this policy. 

5.0 New Business 

5.1 Presentation of proposed budget 2009-2011 

The Library Director explained the various budgets which were submitted last. The budgets had 

a 5%, 10%, 15% cut but without anticipating savings in personnel unless a department decides to 

eliminate a program. The library would have to cut approximately $343, 500 from all three 

budgets Main, Freedom, and Literacy. The city negotiations with all the bargaining units are 

continuing, but there is still no offer on the table. The City has to present a balanced budget to 

the Council at the May 26 th meeting which will include eliminations of positions if the 

bargaining units have not agreed on an employee contribution proposal. The Library Director 

explained the options the library would have to consider in order to balance the budget - 

eliminating or reducing programs, reclassifying or eliminating positions and reducing hourly 

hours. 

We are assuming that once the bargaining units realize that positions and programs have to be 

eliminated they will agree to some type of employee contribution whether it be reduction in hours 

or freezing step increases. 

6.0 Reports 

6.1 Friends of the Watsonville Public Library 

No communications at this time. 

6.2 California Agricultural Workers’ History Center 

A plaque is will be installed in the alcove next to the center that will list all the people that were 

involved with the original feasibility study. The advisory committee is meeting at the end of 

April to create a plan of action for the center. 

6.3 Summer Programs Plans 

Children’s summer program theme is Be Creative @ your Library; there a lot of craft activities 

planned with most of the presenters being library staff members. The young adult program is 

called Express Yourself. The Teen Advisory Board has decided to have a fundraising event 

soon. 

7.0 Adjournment 

The meeting was adjourned at 6:50. 

2 of 2

ASSOCIATION OF MONTEREY 

BAY AREA GOVERNMENTS 

AMBAG 

2009/11 

STRATEGIC PLAN

April 25, 2009 

Strategic Planning Meeting 

Pajaro Dunes 

Board Members describing 

„Where We Are‟ and 

„Where We Want to Be‟ 

without using words 

Working together to 

develop AMBAG‟s 

Mission Statement

Group Drafts of Mission Statement 

CURRENT MISSION STATEMENT: 

The Association was organized for the permanent establishment of a forum for 

planning, discussion and study of regional problems of mutual interest and 

concern to the counties and cities in Monterey, San Benito, and Santa Cruz 

counties; and for the development of studies, plans, policy and action 

recommendations. 

PROPOSED CHANGES: 

o AMBAG is dedicated to providing strategic leadership in collaborative 

action to address regional challenges of mutual interest. 

o AMBAG analyzes plans, implements State and Regional policies for the 

mutual benefit of Monterey, San Benito and Santa Cruz counties. 

o Our region is unique in its environment, industry and culture which need 

protection within the State and Federal structure. The Association of 

Monterey Bay Area Governments is committed to the cities and counties of 

Monterey, San Benito, and Santa Cruz as a forum for regional planning 

and environmental issues to the benefit of all members, ensuring 

consistent application of State and Federal standards, and helping all 

members protect the uniqueness of the Monterey Bay region and the 

common good. 

o AMBAG provides a forum for communication, education and planning of 

regional and statewide issues and solutions of mutual interests and 

concerns to the Monterey Bay Area.

AMBAG 

2009-2011 Strategic Plan 

Table of Contents 

PURPOSE AND VISION 2 

MISSION 2 

EXPECTATIONS 2 

CORE COMPETENCIES 3 

PROGRAMS THAT SHOULD BECOME CORE COMPETENCIES 6 

FACILITATION PROGRAMS THAT ARE IMPORTANT BUT NOT CORE 

COMPETENCIES 7 

OTHER CURRENT PROGRAMS 9 

POTENTIAL AREAS OF INVOLVEMENT 10 

ADMINISTRATION 11 

Page 1

PURPOSE AND VISION 

AMBAG 

2009/11 Strategic Plan 

The Association of Monterey Bay Area Governments (AMBAG): 

(1) Is a forum for transportation, land use, water, energy and public safety 

issues; and 

(2) Helps facilitate the flow of federal and state dollars into the region; and 

(3) Provides technical services and assistance to its member jurisdictions. 

It is the strategic vision of the Board of Directors of AMBAG that the Agency‟s 

programs and services will reinforce these areas of involvement. These areas are 

termed “core competencies.” To that end, this Strategic Plan has been organized 

to focus AMBAG‟s programs into categories of competency. The first part of the 

Strategic Plan lays out programs that are current core competencies for the 

Agency. The second section highlights programs the Board of Directors would like 

to move into Core Competency programs within the timeframe of this document 

(i.e. three years). The third section discusses the programs AMBAG currently 

“facilitates” or participates in. The fourth section captures programs AMBAG has 

undertaken that need to be transitioned. The fifth section discusses programs that 

the AMBAG Board has identified as potential areas of involvement. The final 

section addresses administrative goals and activities of the Agency during this 

Plan‟s horizon. 

MISSION STATEMENT 

The Association was organized for the permanent establishment of a forum for 

planning, discussion and study of regional problems of mutual interest and 

concern to the counties and cities in Monterey, San Benito, and Santa Cruz 

Counties; and for the development of studies, plans, and policy and action 

recommendations. (To Be Revised) 

EXPECTATIONS 

The Strategic Plan is a covering a three year timeframe. The Strategic Plan is a 

“living” document and can be updated at any time. The Plan will be periodically 

brought to the Board of Directors for review and updating (at least every six 

months). Once a year the Plan will be thoroughly reviewed and amended. 

Page 2

CORE COMPETENCIES 

Transportation Transportation Planning Planning 

This activity is required as a function of being the Metropolitan Planning 

Organization(MPO). It is funded by Federal dollars. 

o By November 2009: 

Define AMBAG vs. RTPA competency to minimize 

duplication (e.g. AMBAG does planning; TAMC does 

implementation). 

o By Spring 2010: 

Find additional funding such as VLF or in-kind replacement. 

Regional Travel Demand Model 

Everyone uses it. This is essential for CEQA compliance. Users do not 

pay, it is “free.” Federal funding does not allow for charging expenses to 

public or private sector. 


Research whether RAPS, Inc. can be used for funding ongoing 

maintenance in connection with RTPA‟s, land use 

projects and other areas. 


Develop and adopt a pricing strategy. 

ITS 

Same key challenges as the Regional Travel Demand Model. Federal 

funding coming in so no charging allowed. City and County are the primary 

clients. 


Research mechanism to charge for the services provided. 


Develop and adopt a pricing strategy. 

Page 3

Regional Blueprint 

Third year of Blueprint (under Caltrans grant) 


o By Fall 2012: 

Adopt an interim RTP 2010. 

Synch up with the housing elements. 

Adopt a fully updated RTP, including a Sustainable 

Communities Strategy. 

Census 

AMBAG is a Regional Data Center and viewed as a resource. This 

program is Federally funded. This activity is critical to getting funding into 

the Monterey Bay Area. Staff provides analysis to the data that adds value 

but is not getting reimbursed. 


Provide orderly transition to yearly data and market new 

information to member jurisdictions and the public. 


Develop a marketing plan to take advantage of the 

marketable elements of the analysis – for example marketing 

to real estate agents. 


Develop a pricing plan for the data. 


Develop a contract format. 

Page 4

Energy Watch 

AMBAG is the regional coordinator for greenhouse gas reduction efforts 

of the California Public Utilities Commission (CPUC). AMBAG is the 

local government partner to the CPUC. Staff represents region at the 

State level. 

o Regional Energy Plan – now being implemented. 


Develop and adopt new program. 

Central Coast Commercial Flows Study 

This is a Caltrans funded study to analyze freight flow in the region. 


Connect effort with Route 152 study. 


Develop how this study will coordinate with Blueprint effort. 

Page 5

PROGRAMS THAT SHOULD BECOME CORE COMPETENCIES 

Regional Joint Data Committee 

Funded through Transportation Planning funds. This program provides a 

State-level connection with funding alternatives. This effort may not be 

totally paying currently. It is a “sellable” core service. This is a service that 

can be scaled – this should be something that agencies and cities can use 

and pay for. 




Determine whether this service is duplicating existing 

services and where. 

Develop a plan to transition existing into one AMBAG run 

service. 

Develop a pricing strategy. 


Develop a contract format. 

Page 6

FACILITATION PROGRAMS THAT ARE IMPORTANT BUT NOT 

CORE COMPETENCIES 

Coastal Sediment 

No AMBAG overhead covered in CRSMP South Monterey Bay Study. The 

North Sediment Study does have AMBAG overhead coverage. 



Airport Land Use Commission 

Hire consultants or incorporate funding to provide the 

facilitation services. 

Determine on-going AMBAG role. 

Currently this is a service to Monterey only. There is nexus to AMBAG 

CEQA clearinghouse function. There is also potential connection to Freight 

Study 



Analyze program and service to determine whether this 

should become a AMBAG core competency. 

Study whether this should be expanded to a three county 

effort. 

Pajaro River Watershed Flood Prevention Authority 

Involves all three AMBAG counties. This is a public safety issue. AMBAG 

does cover overhead for this program. 


Educate the AMBAG Board on program elements. 

Page 7

Monterey Bay National Marine Sanctuary (MBNMS) 

No appropriate cost code today. 





Research possible grant funding. 

Develop and adopt a structure to get reimbursed for event 

planning. 

Develop a mechanism to track expenditures – future 

decision point as to the level of effort. 

Consider level of effort involvement, grants funding 

success and possible special assessment of member 

jurisdictions. 

Page 8

OTHER CURRENT PROGRAMS 

Rideshare 

Currently this AMBAG program covers Monterey County Only. Currently 

CMAQ funded along with sponsors. Potentially there will be no new CMAQ 

funding 


Develop a plan to transition program to RTPA (TAMC) or a 

non-profit. 

Page 9

POTENTIAL AREAS OF INVOLVEMENT 

Storm water run-off 

There is the potential to assist member agencies; possibly in a repository role. 

o By November 2009, define AMBAG relationship with the Regional 

Water Quality Control Board (RWQCB). 

o By November 2009, determine whether it is AMBAG‟s role to bring 

together HCP, water, etc. and the Blueprint. 

Page 10

ADMINISTRATION TIMELINE 

By November 2009: 

o Develop an Associate Memberships category -- include RTPA‟s, 

Air District, Water Districts, Airports, and other Special Districts. 


o Develop and have the Board adopt a formal plan to increase the 

unrestricted funding (need to get more than 4%). 


o Revisit the Memorandum of Understandings with RTPA‟s. 


o Develop and adopt a pricing strategy for AMBAG and RAPS, Inc. 

services. 


o Define core competency criteria to measure each new program 

opportunity against. 


o Develop and adopt a contract strategy. 

By Spring 2010: 

o Assess and adjust Regional Analysis and Planning Services, Inc. 

(RAPS) effort including pricing strategy, sponsorship of 

conferences etc. 

By Spring 2010: 

o Tie AMBAG conferences to AMBAG core competencies. 

Page 11

City Council _______ 

City of Watsonville 

Finance Department 

M E M O R A N D U M 

DATE: May 13, 2009 

TO: 

FROM: 

SUBJECT: 


Marc Pimentel, CPA, Administrative Services 

Director 

Marissa Duran, Financial Analyst 

Motion to accept April 2009 Investment Report 

AGENDA ITEM: May 26, 2009 

City Council 

RECOMMENDATION: 

The City Council accepts by motion the investment report for 

March 2009. 

THE ECONOMY: 

Retail sales in the U.S. unexpectedly dropped in April 2009 for a 

second month, indicating that rising unemployment is prompting 

consumers to conserve cash. “There was 0.4 percent decrease 

followed by a revised 1.3 percent drop in March that was larger than 

previously estimated as noted by the Commerce Department in 

Washington. Other reports showed companies continued to cut 

Page 1 of 4 

Writer’s name 5/13/2009 4:37:15 PM 

P:\MARISSA\Investments\Investments\INVESTME.MO\MEMORAND.UMS\2009\April 2009 staff report.docx

stockpiles as demand slowed, and climbing oil costs pushed up prices 

for imported goods. 

Fewer jobs, falling home values and the biggest loss of household 

wealth on record may limit consumers’ ability to spend for years, 

analysts said. 

The City has used LAIF (Local Agency Investment Fund) as a primary 

benchmark for the last several years. LAIF is a good benchmark for 

the City as the average days to maturity of their investments is similar 

to the City’s investment maturity. Over the period of the last 22 months 

we have been able to exceed LAIF’s average yield earnings. 

PORTFOLIO RESULTS: 

Table I 

January February March April 

Cash Invested ($MM) 38.9 34.2 30.3 40.9 

Average Maturity (Days) 461.6 427.5 459.6 331.9 

Average Yield 2.68% 2.52% 2.50% 2.29% 

LAIF Yield 2.05% 1.87% 1.822% 1.607% 

LAIF Cash Invested ($MM) 23.8 21.2 17.2 27.8 

PORTFOLIO MANAGEMENT: 

Over the next few months the strategy will be to maintain the current 

balance of securities with LAIF and invest when Treasuries and 

Agency yield’s exceed LAIF. The committee will continue to invest 

only after the safety and liquidity needs of the City are met. 

Page 2 of 4 



The Local Agency Investment Fund (LAIF) is a voluntary program 

created by statute; began in 1977 as an investment alternative for 

California's local governments and special districts and it continues 

today under Treasurer Bill Lockyer's administration. This program 

offers local agencies the opportunity to participate in a major 

portfolio, which invests hundreds of millions of dollars, using the 

investment expertise of the Treasurer's Office investment staff at no 

additional cost to the taxpayer. This in-house management team is 

comprised of civil servants who have each worked for the State 

Treasurer's Office for an average of 20 years. 

All securities are purchased under the authority of Government Code 

Section 16430 and 16480.4. The State Treasurer's Office takes 

delivery of all securities purchased on a delivery versus payment 

basis using a third party custodian. All investments are purchased at 

market and a market valuation is conducted monthly. LAIF has 

Policies, Goals and Objectives for the portfolio to make certain that 

their goals of Safety, Liquidity and Yield are not jeopardized and that 

prudent management prevails. 

The LAIF has grown from 293 participants and $468 million in 1977 

to 2,612 participants and $16.7 billion in 2006. The City of 

Watsonville currently uses LAIF for most of the City’s idle cash. LAIF 

invests mainly in short-term investments to provide all of its 

participants with easy access to its money, making it the safest way 

to obtain liquidity on our portfolio. LAIF guarantees all principle 

investments and is prudent in their investing. 

Additionally, the City uses LAIF investment return as our benchmark 

for investing. LAIF’s duration (Duration is a measure of the average 

(cash-weighted) term-to-maturity of a bond.) is comparable to our 

portfolio and therefore an effective benchmark. 

FINANCIAL IMPACT: 

Page 3 of 4 



The yield on the benchmark U.S. 10-Year Treasury note is now about 

3.2%, after hitting a year-to-date high of 3.29% last week. On March 

18th, the Federal Reserve unveiled its Treasury purchase plan, the 10- 

year yield was about 2.5%. On the plus side, this is a period where 

both stocks and bond yields are on the rise and it is somewhat 

encouraging. This may help increase the City’s future interest 

earnings. Many of the City’s investment options include Treasury 

securities in order to ensure the City’s primary objectives of Safety, 

Liquidity and Yield (in priority order) when making investment 

decisions. 

ATTACHMENTS: 

1. April 2009 Investment Portfolio 

cc: City Attorney 

Page 4 of 4 




Investment Reports 

30-Apr-09 

We certify that the investment report conforms to the City of Watsonville policy 

and that the City's next 6 month's cash needs can be met if past trends continue. 

Marc Pimentel, CPA 

Marissa Duran, Financial i Analyst 

Administrative Services Director 

Portfolio Average Return 2.24% 

Average Maturity (Days) 331.8 

Comparative Yields: 

LAIF 1.61% 

One Year Agency Note 0.57% 

Six Month -Treasury Bills 0.31% 

Attachment 1 

Page 1 of 2


Investment Position Report 

30-Apr-09 

Current 

Coup. Yield Maturity Face Purchase General Ledger Market Purchase 

Rate (YTM) Date Value Price Balance Value Date 

Treasury Notes (**) 0.0% 

Totals 0 0 0 0 

Average Maturity (Days/Years) 0.0 

Agency Notes(**) 24.5% 

Call date 

8 FHLB 5/28/2010 3.37% 3.37% 18-May-12 1,000,000 1,000,000 1,000,000 1,022,500 24-Nov-08 

5 FHLB 5/28/2009 3.29% 3.29% 29-Nov-10 1,000,000 1,000,000 1,000,000 1,002,190 13-May-08 

9 FHLB 5/25/2010 3.15% 3.38% 25-Nov-11 1,000,000 1,000,000 1,000,000 1,020,940 24-Nov-08 

4 FHLB 5/28/2009 3.63% 3.65% 28-Feb-12 1,000,000 999,063 999,063 1,002,190 13-May-08 

6 FHLB 7/30/2009 4.00% 4.00% 30-Apr-12 2,000,000 2,000,000 2,000,000 2,016,570 30-Jul-08 

3 FMAC 5/28/2009 3.80% 3.92% 29-May-12 1,000,000 995,730 995,730 1,002,380 13-May-08 

2 FHLMC 5/20/2009 4.17% 4.17% 20-May-13 1,000,000 1,000,000 1,000,000 1,001,920 13-May-08 

10 FFCB 7/07/2010 4.36% 4.36% 10-Jun-13 1,000,000 997,250 997,250 1,034,690 17-Jul-08 

7 FHLB 10/13/09 3.55% 3.55% 13-Jan-14 1,000,000 1,000,000 1,000,000 999,220 16-Dec-08 

Totals 3.41% 10,000,000 9,992,043 9,992,043 10,102,600 

Average Maturity (Days/Years) 996 2.7 

Average Duration 

Certificate of Deposit 4.9% 

Rabobank 2.74% 2.78% 15-Nov-09 250,000 250,000 250,000 250,000 13-Nov-08 

Rabobank- RDA 2.74% 2.78% 15-Nov-09 250,000 250,000 250,000 250,000 13-Nov-08 

First National Bank 3.38% 3.42% 15-Nov-09 250,000 250,000 250,000 250,000 15-Nov-08 

First National Bank - RDA 3.38% 3.42% 15-Nov-09 250,000 250,000 250,000 250,000 15-Nov-08 

Santa Cruz County Bank 2.70% 2.74% 15-Nov-09 250,000 250,000 250,000 250,000 15-Nov-08 

Santa Cruz County Bank - RDA 2.70% 2.74% 15-Nov-09 250,000 250,000 250,000 250,000 15-Nov-08 

Santa Cruz Credit Union 2.75% 2.79% 29-Oct-09 250,000 250,000 250,000 250,000 29-Oct-08 

Santa Cruz Credit Union - RDA 2.75% 2.79% 29-Oct-09 250,000 250,000 250,000 250,000 29-Oct-08 

Totals 0.35% 2,000,000 2,000,000 2,000,000 2,000,000 

Average Maturity (Days/Years) 25 0.1 

Average Duration 

Special Assessment 2.6% 

Second Street, Watsonville 6.75% 6.75% 31-Oct-11 57,000 57,000 57,000 57,000 31-Oct-96 

Hyde Street, Watsonville 6.75% 6.75% 31-Oct-11 51,000 51,000 51,000 51,000 31-Oct-96 

Beck Street, Watsonville 6.00% 6.00% 29-Nov-13 95,000 95,000 95,000 95,000 30-Nov-98 

Progress Drive, Watsonville 6.25% 6.25% 2-Sep-15 76,000 76,000 76,000 76,000 6-Oct-99 

7th, 8th and 9th St., Watsonville 6.00% 6.00% 4-Dec-15 75,022 75,022 75,022 75,022 4-Dec-00 

Watson Street, Watsonville 6.00% 6.00% 4-Dec-15 37,944 37,944 37,944 37,944 4-Dec-00 

Second Street Court, Watsonville 6.00% 6.00% 15-Sep-17 22,000 22,000 22,000 22,000 2-Sep-02 

Atkinson Lane, Watsonville 6.50% 6.50% 15-Sep-19 637,000 637,000 637,000 637,000 28-Jun-05 

Totals 6.40% 1,050,966 1,050,966 1,050,966 1,050,966 

Average Maturity (Days/Years) 3,033 8 

68.1% 

Money Market 

LAIF N/A 1.61% Demand 17,397,363 17,397,363 17,397,363 10,545,493 Various 

LAIF - RDA 1.61% 5,965,995 5,965,995 5,965,995 7,093,044 

LAIF- WATER BOND 1.61% 4,448,060 4,448,060 4,448,060 7,586,112 

27,811,417 27,811,417 27,811,417 27,811,417 

40,862,383 40,854,426 40,854,426 40,964,983 

Totals 2.24% 

Average Maturity (Days/Years) 331.8 Activity Report 

31-Mar-09 Days -127.2 2 Callable once 05/20/09 Investment Called 

3 Callable once 05/28/09 




7 Callable beg 10/13/09 



Source: First National Bank 10 Callable once 07/07/10 

Attachment 1 

Page 2 of 2

City Council _________ 

RESOLUTION NO. _______ (CM) 

A RESOLUTION OF THE CITY COUNCIL OF THE 

CITY OF WATSONVILLE REJECTING CLAIM OF 

ANTONE G. BASICH FOR DAMAGES 

(Date of Occurrence: April 3, and April 23, 2009) 

BE IT RESOLVED BY THE CITY COUNCIL OF THE 

CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS: 

That the claim of Antone G. Basich for damages, which 

was filed with the City Clerk on May 4, 2009, be and the same 

is hereby rejected. 

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

The foregoing resolution was introduced at a regular 

meeting of the Council of the City of Watsonville, held on the 

day of , 2009, by Council Member , 

who moved its adoption, which motion being duly seconded by 

Council Member 

, was upon roll call carried 

and the resolution adopted by the following vote: 

AYES: 

NOES: 

COUNCIL MEMBERS: 


Reso No. (CM) 

Q:\COUNCIL\2009\052609\RC 09-09 Basich.docx 

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AJS ______ CJP _____ 

1

ABSENT: 

ATTEST: 


______________________________ 

Antonio Rivas, Mayor 

_____________________________ 

City Clerk 

APPROVED AS TO FORM: 

_____________________________ 

City Attorney 

Reso No. (CM) 2 

Q:\COUNCIL\2009\052609\RC 09-09 Basich.docx 

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City Council______________ 


Public Works & Utilities Department 


DATE: May 20, 2009 

TO: 

FROM: 


David A. Koch, Public Works & Utilities Director 

Murray A. Fontes, Principal Engineer 

SUBJECT: Resolution Awarding Bid for the Auto Center 

Drive Pedestrian Improvements 

Project No. TR-08-02. 


City Council 

RECOMMENDATION: Staff recommends that the City Council award 

the construction contract for the Auto Center Drive Pedestrian 

Improvements, Project No. TR-08-02, to the lowest responsive bidder, 

the Don Chapin Company, in the amount of $109,960.00. 

Page 1 of 3 

Murray Fontes 5/20/2009 11:44:49 AM 

M:\Public Works & Utilities\Staff Reports\2009\maf auto center drive pedestrian improvements 05.26.09a.docx

DISCUSSION: The Auto Center Drive Pedestrian Improvements shall 

enhance pedestrian safety by installing a crosswalk and pedestrian 

improvements across Auto Center Drive at the intersection with Main 

Street/State Route 152. Improvements include reconstruction of a 

portion of Auto Center Drive, replacement of curb, gutter and sidewalk, 

modifications to the existing traffic signal and restriping of the roadway. 

On April 14, 2009, the City Council approved Resolution No. 58-09 

(CM) that included approval of plans and specifications and called for 

bids for the subject project. Bids for the project were opened on May 

21, 2009. A summary of the bids are as follows: 

Bidder 

Amount 

Don Chapin Company, Salinas $109,960.00 

Joseph J. Albanese, Inc., Santa Clara $116,245.00 

Monterey Peninsula Engineering, Inc., Monterey $117,400.00 

Granite Construction Company, Watsonville $138,145.00 

JJR Construction, Inc., San Mateo $147,627.00 

Granite Rock Company, 

Pavex Construction Division, San Jose $159,891.00 

Earthworks Paving Contractors, Inc., Capitola $184,183.00 

STRATEGIC PLAN: This project is a part of the improvements 

described within the Watsonville City Council’s 2007-2009 Strategic 

Plan Goal I, Sustainable Economic Development, #12 – Construction 

of Auto Center Drive Improvements. 

FINANCIAL IMPACT: Award of the project to the Don Chapin 

Company is in the amount of $109,960.00. The project is being funded 

with $110,000 from Caltrans Cooperative Agreement 05-CA-0216, 

approved by City Council in Resolution No 102-08 (CM) on June 24, 

2008. Any additional project costs shall be from Gas Tax funds. 

Page 2 of 3 



ALTERNATIVES: The Council can choose not to award the bid and 

not proceed with the project. 

ATTACHMENTS: None. 


Page 3 of 3 




RESOLUTION NO.__________ (CM) 


CITY OF WATSONVILLE AWARDING $109,960 BID 

TO THE DON CHAPIN CO., INC., A CORPORATION, 

FOR THE AUTO CENTER DRIVE PEDESTRIAN 

IMPROVEMENTS, PROJECT NO. TR-08-02 (FUNDED 

FROM A COOPERATIVE AGREEMENT WITH THE 

STATE OF CALIFORNIA AND GAS TAX FUNDS) 

WHEREAS, Resolution No. 58-09 (CM) adopted by the City 

Council of the City of Watsonville on April 14, 2009, approved 

plans and specifications and authorized calling for bids for the 

Auto Center Drive Pedestrian Improvements; and 

WHEREAS, the bids received for the Auto Center Drive 

Pedestrian Improvements were opened in the City Council 

Chambers, City Hall, 250 Main Street, Watsonville, California, on 

Thursday, May 21, 2009, at 10:00 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 The Don Chapin Co., Inc., a corporation, (Contractor 

License #406512) for the Auto Center Drive Pedestrian 

Reso No. (CM) 

Q:\COUNCIL\2009\052609\AB TR-08-02.docx 

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AJS ______ CJP ______PWU ______ 

1

Improvements in the amount of $109,960, be accepted as the 

responsive bid. 

NOW, THEREFORE, BE IT RESOLVED BY THE CITY 

COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS 

FOLLOWS: 

1. That the bid of The Don Chapin Co., Inc., a corporation, 

for the Auto Center Drive Pedestrian Improvements in the amount 

of $109,960 be accepted, and the execution of a contract by the 

City Manager is hereby authorized. 

2. That all other bids are hereby rejected. 

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

Reso No. (CM) 

Q:\COUNCIL\2009\052609\AB TR-08-02.docx 

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2



Parks and Community Services Department 


DATE: May 20, 2009 

TO: 

FROM: 

SUBJECT: 


Ana Espinoza, Parks and Community Services 

Director 

Nick Calubaquib, Recreation Superintendent 

Agreement with the Pajaro Valley Unified 

School District for use of the Watsonville High 

School Pool for the City’s 2009 Summer 

Aquatics Program 


City Council 


It is recommended that the City Council approve the Agreement for 

use of the Watsonville High School Pool for the City’s 2009 Summer 

Aquatics Program. The agreement provides the City with use of the 

swimming pool, lockers, restrooms, dressing rooms, office space, and 

associated facilities free of charge. 

DISCUSSION: 

Page 1 of 3 


P:\CityCouncil\StaffReports\2009\correctedPVUSDPool Agreement 2009rpt_.doc

The Agreement provides the Parks and Community Services 

Department with use of the Watsonville High School Pool for a nine (9) 

week period from June 6 through August 9, 2009. Hours of use will be 

Mondays to Fridays from 8:30 a.m. to 6:45 p.m. and Saturdays from 

10:45 a.m. to 5:00 p.m. The proposed agreement is only for the 

summer of 2009. At this time it has not been determined whether the 

Pajaro Valley Unified School District will allow the City use of the pool 

in the summer of 2010 and subsequent years. 

Benefit to Watsonville Residents. 

The City of Watsonville has operated the Summer Aquatics Program at 

the Watsonville High School pool for nearly 15 years. In 2008, the 

Aquatics program offered swim lessons for beginners to advanced, 

pre-school water adaptive classes, water babies classes, junior 

lifeguards, and adult swim lessons with a total of over 575 registered 

participants. The pool was also reserved seven times for private swim 

parties. In addition, over 2,500 residents participated in the 

recreational swim program and over 25 lifeguards were trained and 

certified. 

The Summer Aquatics Program is an important and vital program as it 

provides opportunities for community members to learn valuable water 

safety skills in a safe and fun environment and at an affordable cost. 

STRATEGIC PLAN: 

The Summer Aquatics Program is aligned with the City Council’s goal 

of Education as it increases community members’ swim skills and 

knowledge of water safety. 


Community members pay a minimal fee to participate in the various 

Aquatic Program lessons and activities scheduled which cover the cost 

of aquatics personnel. 

Page 2 of 3 



ALTERNATIVES: 

The City Council may choose not to approve the Agreement with the 

Pajaro Valley Unified School District for use of the Watsonville High 

School Pool for the Summer Aquatic Program. 

ATTACHMENTS: 

None. 


Page 3 of 3 






CITY OF WATSONVILLE 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 2009 

SUMMER AQUATICS PROGRAM, AND 

AUTHORIZING AND DIRECTING THE CITY 

MANAGER TO EXECUTE SAME 

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY 

OF WATSONVILLE, CALIFORNIA, AS FOLLOWS: 

1. That the Agreement between the City of Watsonville and 

the Pájaro Valley Unified School District, a political subdivision of 

the State of California, for the use of the Watsonville High School 

pool for the City’s 2009 Summer Aquatics Program, a copy of 

which Agreement is attached hereto and incorporated herein by 

this reference, is fair and equitable and is hereby ratified and 

approved. 

Reso No. (CM) 

Q:\COUNCIL\2009\052609\Agrmt PVUSD Pool.docx 

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AJS ______ CJP ______ PCS ______ 

1

2. That the City Manager be and is hereby authorized and 

directed to execute said Agreement for and on behalf of the City of 

Watsonville. 

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

Reso No. (CM) 

Q:\COUNCIL\2009\052609\Agrmt PVUSD Pool.docx 

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2

AGREEMENT BETWEEN THE CITY OF WATSONVILLE AND THE PAJARO 

VALLEY UNIFIED SCHOOL DISTRICT FOR 2009 SUMMER SWIM PROGRAM AT 

WATSONVILLE HIGH SCHOOL 

THIS AGREEMENT is made and entered into between the City of Watsonville, 

a municipal corporation, hereafter called “City,” and the PAJARO VALLEY UNIFIED 

SCHOOL DISTRICT, hereafter called “District.” 

RECITALS 

Whereas, the parties hereto are desirous of entering into an agreement to carry 

out a summer recreational swimming program at the Watsonville High School pool 

under the provisions of the Education Code in order to promote and cultivate the health, 

welfare, and good citizenship of members of the community. 

NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 

1. District hereby grants the use, and City hereby accepts the use, as authorized 

by Section 10910 of the Education Code of those school facilities consisting 

of a swimming pool, lockers, restrooms, dressing rooms, office space, and the 

pool storage/pump room at the Watsonville High School campus on Maple 

Street in the City of Watsonville, hereafter called “facilities.” 

2. The term of this grant of use shall commence June 6, 2009, and terminate 

August 9, 2009, subject to District requirement for maintenance. General use 

will be by City is Mondays to Fridays from 8:30 a.m. – 6:45 p.m. and 

Saturdays from 10:45 a.m. – 5:00 p.m. 

3. City shall pay no fee for use of facilities and District waives all fees therefore; 

provided, however, that City may charge any and all persons using the 

facilities under the City Recreation Program for use of the facilities, which 

fees shall be the property of City. 

1

4. District shall provide the following services: 

a. Provide for maintenance of pool facilities, including chemicals, water 

supplies and utilities. 

b. Provide for custodial services to the facilities. 

c. Provide telephone for emergency and daily operational use. 

d. Provide keys to the City Parks and Community Services Department 

staff for access to the facilities. 

e. Permit the City Parks and Community Services Department priority use 

and scheduling authority with due consideration to District 

requirements. 

f. Notify City within twenty-four (24) hours of any pool closure for 

emergency maintenance. 

g. Plan for all regular maintenance prior to June 6, 2009 and after August 

9, 2009. 

5. City shall provide the following services: 

a. Provide supervision during public use of facilities. 

b. Provide and schedule swimming lessons and recreational swim 

periods for the general public, and which schedule shall be submitted 

in writing to District by June 1, 2009. 

c. Hire certified Swim Instructors, Life Guards or competent personnel 

to conduct swimming programs and provide all workers’ compensation 

for such personnel. 

d. Immediately notify District officials of any hazardous or unsafe 

conditions of the facilities. 

2

e. Comply with such rules and regulations applicable to School District 

facilities, including the prohibition of any alcohol beverages, as 

contained in the City Municipal Code or any Ordinances or 

Resolutions, which may also be applicable to facility use. 

f. The City will be responsible for ensuring the trash is deposited in the 

trash receptacles prior to closing the facility each day. 

g. Assume responsibility for opening and closing the facility on each day 

of scheduled use. 

h. The City shall be responsible for expenses incurred by the School 

District for cleaning, damages and repairs of facility, equipment, and 

furniture during the period of such use that is not attributed to ordinary 

and reasonable use and normal wear and tear. 

i. The City shall file a Facilities Use agreement in the School Districts 

Facilities Department (294 Green Valley Road) and follow all 

procedures required including but not limited to Insurance 

Responsibilities. 

6. The City community recreation swimming program shall be under the 

direction and supervision of the City Parks and Community Services 

Department. City shall be responsible for the hiring and dismissal of all 

personnel for the program. All salaries shall be paid on the basis of the 

current pay scale of City. All equipment purchases by City shall be and 

remain the property of the City and shall be stored by District in a secure 

manner. City shall assume no responsibility for loss or damage to District 

3

equipment and District shall assume no responsibility for loss or damage to 

City equipment. 

7. It shall be the responsibility of the City Parks and Community Services 

Department to schedule and supervise all activities during the term of this 

agreement. The Parks and Community Services Director of City is hereby 

appointed as a representative to the District Board and is hereby authorized 

to exercise the powers delegated to such representative under the Civic 

Center Act. 

8. District shall indemnify and hold harmless the City for any and all loss of 

damage and claims directly or indirectly arising out of, or alleged to arise out 

of, the condition and maintenance of the facilities or equipment furnished or 

made available by District for the program or used in connection therewith. 

City shall indemnify and hold harmless the District its directors, officers, 

employees, agents and volunteers for any claim for bodily injury or property 

damage arising from the City’s operation of the program covered by this 

Agreement. 

9. This Agreement may be amended or modified only by written agreement 

signed by both parties. Failure on the part of either party to enforce any 

provision of this Agreement shall not be construed as a waiver of the right to 

compel enforcement of such provision or provisions. 

10. All attempts shall be made to mediate and come to a mutual agreement, 

however, should litigation commence with respect to this Agreement, the 

prevailing party shall be entitled to recover from the other party, costs of suit 

and reasonable expenses and fees, including reasonable attorney’s fees. 

4

IN WITNESS WHEREOF, the parties hereto have executed this agreement this 

__________ day of ________________, 2009, at Watsonville, California. 

“City” 

CITY OF WATSONVILLE, 

a Municipal Corporation 

“District” 

PAJARO VALLEY UNIFIED 

SCHOOL DISTRICT 

By: ________________________ 

Carlos, J. Palacios, City Manager 

By: _________________________ 

Superintendent 

By: _________________________ 

District Operations Supervisor 

ATTEST: 

By: _________________________ 

Beatriz Vazquez Flores, City Clerk 

APPROVED AS TO FORM: 

By: _________________________ 

Alan J. Smith, City Attorney 

5




CITY OF WATSONVILLE APPROVING SIDE LETTER 

TO THE AGREEMENT BETWEEN THE CITY OF 

WATSONVILLE AND BEATRIZ VÁZQUEZ FLORES 

FOR EMPLOYMENT AS CITY CLERK FOR FISCAL 

YEAR 2009-2010 

WHEREAS, the City Clerk is appointed by the City Council 

without a bargaining unit, however has voluntarily agreed to the 

same terms and conditions as set forth in the Memorandum of 

Understanding for the Management Unit for fiscal year 2009-2010; 

and 

WHEREAS, the parties have agreed to the terms as set forth 

in the Side Letter, attached hereto and incorporated herein as 

Exhibit “A”; and 

WHEREAS, the Council of the City of Watsonville after 

reviewing the Side Letter hereby determines to approve said Side 

Letter to the Agreement between the City of Watsonville and 

Beatriz Vázquez Flores for employment as City Clerk for fiscal 

year 2009-2010. 

Reso No. (CM) 

Q:\COUNCIL\2009\052609\City Clerk Side Letter.docx 

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AJS ______ CJP ______ 

1



FOLLOWS: 

That the Side Letter to the Agreement between the City of 

Watsonville and Beatriz Vázquez Flores for employment as City 

Clerk, attached hereto marked Exhibit "A," and incorporated herein 

by this reference, is hereby approved. 

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

Reso No. (CM) 

Q:\COUNCIL\2009\052609\City Clerk Side Letter.docx 

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2

Exhibit "A" 

1 of 1

APPENDIX A

APPENDIX A

APPENDIX A

City Manager _________ 

RESOLUTION NO. 

(CM) 



TO THE AGREEMENT BETWEEN THE CITY OF 

WATSONVILLE AND CARLOS J. PALACIOS FOR 

EMPLOYMENT AS CITY MANAGER FOR FISCAL 

YEAR 2009-2010 

WHEREAS, the City Manager is appointed by City Council 

without a bargaining unit, however has voluntarily agreed to the 

same terms and conditions as set forth in the Memorandum of 

Understanding for the Management Unit for fiscal year 2009-2010; 

and 






Letter to the Agreement between the City of Watsonville and 

Carlos J. Palacios for employment as City Manager for fiscal year 

2009-2010. 

Reso No. (CM) 

Q:\COUNCIL\2009\052609\City Manager Side Letter.docx 

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1 

AJS ______ CJP ______



FOLLOWS: 

That the Side Letter to the Agreement between the City of 

Watsonville and Carlos J. Palacios for employment as City 

Manager, attached hereto marked Exhibit "A," and incorporated 

herein by this reference, is hereby approved. 

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

Reso No. (CM) 

Q:\COUNCIL\2009\052609\City Manager Side Letter.docx 

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2

Exhibit "A" 

1 of 1

APPENDIX A

APPENDIX A

APPENDIX A




CITY OF WATSONVILLE RATIFYING A 

MEMORANDUM OF UNDERSTANDING BETWEEN 

THE MUNICIPAL EMPLOYEE RELATIONS OFFICER 

OF THE CITY AND THE CONFIDENTIAL UNIT FOR 

FISCAL YEAR 2009-2010 

WHEREAS, the delegate of the City of Watsonville Municipal 

Employee Relations Officer and the Confidential Unit, 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 


reviewing the Memorandum of Understanding hereby determines 

to ratify the Memorandum of Understanding. 

Reso No. (CM) 

Q:\COUNCIL\2009\052609\MOU Confidential .docx 

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AJS ______ CJP ______ 

1



FOLLOWS: 

That the Memorandum of Understanding between the 

Municipal Employee Relations Officer and the Confidential Unit, 

attached hereto marked Exhibit “A,” and incorporated herein by 

this reference, is hereby ratified for the fiscal year July 1, 2009 to 

June 30, 2010; or until a new agreement has been executed. 

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

Reso No. (CM) 

Q:\COUNCIL\2009\052609\MOU Confidential .docx 

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2

MEMORANDUM OF UNDERSTANDING 

BETWEEN 

CONFIDENTIAL UNIT 

AND 

THE CITY OF WATSONVILLE 

2009-2010

TABLE OF CONTENTS 

1.0 COMPENSATION ........................................................................................................... 2 

1.1 Salary ................................................................................................................................. 2 

1.2 Overtime ............................................................................................................................ 3 

1.3 Bilingual Pay ..................................................................................................................... 3 

1.4 Employee Retirement Contribution ................................................................................... 4 

1.5 Deferred Compensation ..................................................................................................... 5 

1.6 Temporarily Working Out of Classification ...................................................................... 5 

1.7 Education Incentive ........................................................................................................... 5 

1.8 Notary Pay ......................................................................................................................... 5 

2.0 INSURANCE .................................................................................................................... 6 

2.1 Health Insurance ................................................................................................................ 6 

2.2 Excess Disability Insurance ............................................................................................... 7 

2.3 Life Insurance .................................................................................................................... 7 

2.4 Long Term Disability Insurance ........................................................................................ 7 

3.0 LEAVES ............................................................................................................................ 7 

3.1 Vacation ............................................................................................................................. 8 

3.2 Maximum Vacation Accrual ............................................................................................. 8 

3.3 Holidays ............................................................................................................................. 8 

3.4 Sick Leave ......................................................................................................................... 8 

3.5 Personal Leave ................................................................................................................... 9 

3.6 Family Care and Medical Leave Policy ............................................................................. 9 

4.0 MANAGEMENT RIGHTS ............................................................................................ 10 

5.0 PEACEFUL PERFORMANCE .................................................................................... 12 

6.0 RETIREMENT ............................................................................................................... 12 

6.1 Credit for Unused Sick Leave ....................................................................................... 12 

6.2 Retirement Re-opener ................................................................................................... 12 

7.0 MISCELLANEOUS ....................................................................................................... 12 

7.1 IRS-125 Program ............................................................................................................. 12 

7.2 Mileage ............................................................................................................................ 12 

7.3 Flexible Schedules ........................................................................................................... 12 

7.4 Health Saving Account .................................................................................................... 13 

8.0 ENACTMENT ................................................................................................................ 13 

Confidential 2009-2010 MOU CC Draft 

5/21/2009 1:49 PM 

1


BETWEEN 


AND 


2009-2010 

This Memorandum of Understanding sets forth the agreement between the representatives 

of the confidential Unit and the representatives of the City of Watsonville on all matters 

contained herein for employees of the City of Watsonville in the Confidential Unit. The 

parties hereto agree to jointly recommend to the City Council of the City of Watsonville 

that one or more resolutions be adopted effectuating the following changes in the salaries, 

benefits, and other terms and conditions of employment for said employees in the 

Confidential Unit. 

This agreement shall become effective July 1, 2009, and shall terminate June 30, 2010. 

All benefits currently in effect and not modified by this Agreement or Appendix A shall 

remain in effect for the term of this Agreement, except as provided herein. 

1.0 COMPENSATION 

1.1 Salary 

1.1. 1 Effective retroactive to the first full payroll period with a beginning 

date on or after July 1, 2006, all members in the bargaining unit who 

have been compensated at the top “G” step of the salary range for at 

least one year (at least 2080 hours) shall be advanced to a new step 

that is 5% higher on the salary schedule. This elevated step shall 

then become the new top “G” step. All other steps below this new 

“G” step shall be re-lettered accordingly with the current “A” step 

being eliminated. All employees below the elevated “G” step, 

including those at the current "A" step, while at a re-lettered step, 

remain at their current salary rate, but shall advance in step at their 

normal anniversary date in accordance with existing City rules on 

step advancement. 

1.1.2 Effective retroactive to the first full payroll period on or after July 1, 

2006, base salaries shall be increased 1.5%. 

1.1.3 Effective the first full payroll period after July 1, 2007, base salaries 

shall be increased 3.0%. 

1.1.4 Effective the first full payroll period after July 1, 2008, base salaries 

shall be increased 3.0%. 


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1.1.5 Effective the first full payroll period in January 2007, and effective 

concurrently with the changes proposed in section 1.4. base salaries 

shall increase by 3%. 

1.2 Overtime 

1.2.1 Time and one-half will be paid for all overtime over the normal 

forty (40) hour work period. Paid time off shall be counted as time 

worked over the normal forty (40) hour work period. 

1.2.2 C.T.O. shall accrue at the regular overtime rate of one and one half 

hours of C.T.O. for each hour of overtime worked. Employees may 

maintain a compensatory bank of up to forty (40) hours. Upon 

utilization of compensatory time and reducing accruals below the 

forty (40) hour limit, employees may earn additional compensatory 

time off. However, employees may exceed the forty (40) hour 

accrual limit upon Department Head approval. If approval over forty 

(40) hours, employee shall receive payment of his or her regular 

hourly rate for CTO accrued in excess of forty hours. Payment shall 

be in the first pay period in December. 

1.3 Bilingual Pay 

1.3.1 Eligibility for Level I Premium Pay: 

In order to receive Level I bi-lingual premium pay employees proficient in 

the Spanish language must meet the following criteria: 

(a) 

(b) 

The employee must pass the City’s bilingual competency test as 

administered by the Personnel Department on an annual basis to 

maintain the premium pay. The City Manager may waive the 

annual testing requirement for individuals upon recommendation of 

the Department Head. Annual basis refers to fiscal year; and 

The employee is required to serve as an oral interpreter and provide 

basic written translations on a regular and on-going basis, as 

certified by the Department Head 

1.3.2 Level I Premium Pay: 

(a) 

For employees hired after November 1, 2006 the City shall pay a 

stipend of $250/month, pro rated for part time employees. 

(b) Employees eligible for Level I Premium Pay before November 1, 

2006 shall receive premium pay equal to five percent (5%) of his/her 

base salary as of November 1, 2006, with the premium rounded to 

the nearest dollar, and exclusive of any retroactive wage increases 

provided under this agreement. A list of each employee’s premium 


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pay under this section will be provided to the Association. 

Employees who receive the five percent premium, above, may 

irrevocably opt into the $250/month stipend specified in (a) above. 

1.3.3 Level II Premium Pay: 

In addition to the Level I stipend the City will designate a limited number of 

staff as Level II Bilingual Translators. Such Level II Bilingual Translators 

shall perform written translations that are viewed by a large audience of city 

residents (i.e. City mailers, City Council minutes, inserts in City utility bills, 

etc.) 

(a) 

(b) 

Level II Translators shall receive an additional $100/month. 

To evidence competency as a Level II Translator, employees must 

pass a skills-based test administered by the City to demonstrate 

competency in written translation. 

1.4 Employee Retirement Contribution 

1.4.1 For the term of this Agreement, the City agrees to contribute to the 

California Public Employees Retirement System (CalPERS) on 

behalf of each employee, seven percent (7%) of the employee's 

compensation upon which retirement contributions are calculated 

(hereinafter "7%"). Effective the first full pay period in January 

2007 the City contribution shall be reduced to four percent (4%) of 

the employee’s compensation. Said contributions shall be 

considered deferred compensation, not salary, and shall be credited 

to the employee's retirement account. Any future income tax 

obligations resulting from these contributions shall be the exclusive 

responsibility of the employee. In the event the Internal Revenue 

Service shall change its current position and determine that such 

contributions constitute salary, not deferred compensation, any 

resulting tax obligations shall be the exclusive responsibility of the 

employee and the City shall not be held responsible therefore. 

For purposes of salary comparison, the employee retirement 

contribution paid by the City shall be considered as part of base pay. 

1.4.2 Special Compensation: 

The City shall report the employees’ four percent (4%) retirement 

contribution as special compensation. Pursuant to Section 20636 

(c)(4) of the California Public Employees Retirement Law, this four 

percent (4%) retirement contribution shall then be considered 

compensation for retirement purposes. 

1.4.3 Retirement Tax Deferment: 


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The City shall maintain the IRS Sec. 414(h)(2) provision allowing 

employees to make employee retirement contributions with pretax 

(tax deferred) dollars. 

1.5 Deferred Compensation 

Members of this Unit may participate in the Deferred Compensation Plan 

currently in effect. 

1.6 Temporarily Working Out of Classification 

In every City department subordinate employees are expected to act as 

relief for their superiors. Employees also may be assigned to a higher 

classification which is vacant due to the absence or resignation of another 

employee. This provides training opportunities to help qualify employees 

to successfully compete for future promotion. Acting as relief for a lengthy 

period, however, should be recognized by added compensation since a 

higher level of continuing responsibility is involved. 

Procedure. With prior management approval whenever a subordinate 

employees acts as relief and must perform substantially higher duties for a 

superior for more than fifteen (15) cumulative working days in a fiscal year, 

an appropriate salary adjustment shall be made pursuant to these rules. The 

salary adjustment shall become effective on the 16th day of the temporary 

assignment and shall not be retroactive. Upon returning to the 

responsibility of his/her normal position, salary shall be returned to the 

normal level. 

Compensation for work out of classification will be the lowest step in the 

higher salary range with pay which provides a minimum increase of five 

(5%) percent above the normal rate of pay for the employee. 

1.7 Education Incentive 

The City shall provide to employees an annual incentive, to be paid in the 

payroll period falling on or nearest to July 1 st of each year who possess 

advanced degrees as follows: 

Bachelor’s Degree: $600/year 

Associate’s Degree: $300/year 

1.8 Notary Pay 

Employees authorized by their Department Head to act as a notary for 

official City business shall receive an additional $75 (seventy five) dollars 

per month pay, beginning the first full payroll period in January 2007. 


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2.0 INSURANCE 

2.1 Health Insurance 

2.1.1 The City shall retain in effect current health insurance coverages for 

all Unit employees. The City shall contribute the following monthly 

amounts per full time employee towards health insurance coverages: 

October 1, 2006 $776.15 

July 1, 2007 $821.15 

2.1.2 Should the City contributions and employee contributions/plan 

changes fail to fund the Self-Funded Health Plan without a deficit 

for fiscal year 08/09, The City and employees agree to each 

contribute up to $45.00 each (in either additional premiums or plan 

changes) to fund the plan. If additional funding is needed, the parties 

agree to re-open this section to discuss additional City and employee 

contributions/plan changes and/ or a change from self-funded health 

plan. Such a re-opener shall occur no later than May 30, 2008. 

2.1.3 The City and the employees agree to jointly participate in the City 

Employees Health Committee (CEHC) as outlined in the bylaws 

dated July 1992. 

2.1.4 Implementation of changes in medical insurance will be subject to 

the meet and confer process between the City and the Unit. 

2.1.5 Regular part-time employees will be fully covered at the employee 

only level at the City's expense. The employee shall have the option 

of covering additional dependents at their own expense. This shall 

be determined by utilizing the three-tier rate which the City has 

established for the COBRA and other purposes (less any 

surcharges). To cover one (1) dependent, the employee will pay the 

difference between the employee only rate and the employee plus 

one rate. To cover the family, the employee will pay the difference 

between the employee only rate and the full family rate under the 

three tiers. 

The decision to cover family members shall be made during a one 

time election when this provision becomes effective. Thereafter, 

employees may only add or delete family members in accordance 

with plan rules. 

Regular part-time employees employed on or before December 1, 

1998, in the thirty (30) hour category, shall continue to receive full 

health insurance benefits. 


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2.1.6 For any member of the Unit who expires all leave due to illness or 

injury, which is not a Workers’ Compensation claim, the City shall 

maintain the health insurance coverage and pay the premium on 

behalf of the member for an additional thirty (30) days. 

2.2 Excess Disability Insurance 

2.2.1 In the event of job-related injury or illness, the employee will 

receive the maximum weekly Workers' Compensation benefit as 

determined by State law. 

2.2.2 In addition to this amount, the employee may receive an appropriate 

amount of accrued sick leave pay to provide for the difference 

between the established Workers' Compensation amount and the 

employee's regular gross pay. 

2.2.3 The employee may also receive Fifty Dollars ($50.00) per week 

extra disability coverage in lieu of accrued sick leave pay. 

2.2.4 In no event shall the combination of Workers' Compensation 

benefits exceed the regular gross pay of the affected employee. 

2.2.5 It shall be the responsibility of the employee to notify the Finance 

Department within three (3) days of the injury or illness if the extra 

coverage option described in Section 2.2.3 above is to be 

implemented. 

2.2.6 Absent notification to the contrary, the Finance Department will 

automatically apply accrued sick leave with the established Workers' 

Compensation amount to equal the employee's gross pay. 

2.2.7 The Fifty Dollars ($50) per week excess coverage shall not apply 

until the seventh (7th) calendar day following the injury or illness 

event. 

2.3 Life Insurance 

The City shall increase to Fifty Thousand Dollars ($50,000) per employee 

life insurance policy for the term of this Agreement. 

2.4 Long Term Disability Insurance 

3.0 LEAVES 

The City shall continue paying the Long Term Disability Insurance 

premium for Unit members for the term of the agreement. 


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3.1 Vacation 

Each employee shall accrue vacation as specified below: 

0 through 5 years of service - 12 days per year 


13 or more years of service - 20 days per year 

3.2 Maximum Vacation Accrual 

Maximum vacation accrual shall be no more than two (2) times an 

employees’ annual vacation amount. 

Employees requesting and denied vacation due to the needs of the City and 

therefore having vacation accrual amounts exceeding the maximum shall 

have a sixty (60) day period from the time the vacation request was denied 

to reschedule their vacation. 

3.3 Holidays 

There shall be thirteen (13) holidays per year as specified below: 

January 1 (New Year's Day) 

Third Monday in January (Martin Luther King's Birthday) 

Lincoln's Birthday (Floating holiday) 

Third Monday in February (Washington's Birthday) 

Last Monday in May (Memorial Day) 

July Fourth 

First Monday in September (Labor Day) 

November 11 (Veterans Day) 

Thanksgiving Day 

Friday following Thanksgiving (in lieu of Election Day) 

December 24 (in lieu of Admission Day) 

December 25 (Christmas Day) 

December 31 (in lieu of Columbus Day) 

Recognized holidays which fall on Saturday shall be observed on the 

preceding scheduled work day. Recognized holidays which fall on a 

Sunday shall be observed on the following scheduled work day. 

There will be one (1) floating vacation day credited to each employee on 

Lincoln's Birthday, which may be taken pursuant to the City's leave 

regulations. 

3.4 Sick Leave 

3.4.1 Each employee shall accrue sick leave in the amount of one and one 

quarter (1-1/4) days per month of service (10 hours). Sick leave is 


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payable only in the cases of bona fide illness or injury in accord with 

Administrative Rule III-1.11. 

3.4.2 The maximum accumulation of unused sick leave is 125 days (1,000 

hours). Sick leave accumulated in any calendar year in excess of 

125 days (1,000 hours) shall be paid at the rate of 50% of such 

excess. The balance of such unused sick leave is lost and the sick 

leave accrual is reduced to 125 days (1,000 hours) at January 1 of 

each year. An employee may be compensated for sick leave in 

excess of 1000 hours at 50% upon retirement or resignation of 

service in good standing. This shall not apply to employees who are 

dismissed. 

3.4.3 In the event of an illness in the immediate family, an employee shall 

be granted accrued sick leave not to exceed five (5) days by the 

department head. For the purposes of this section, immediate family 

shall include parents, brothers, sisters, spouses, children and 

grandparents. Where unusually close ties exist, the department may 

determine other relationships to be included in the definition on a 

case-by-case basis. 

3.4.4 Employees shall cease accruing sick leave after eighty (80) 

consecutive hours on paid sick leave. 

3.4.5 In case of death in the immediate family, an employee may be 

granted accrued sick leave not to exceed three (3) days. In cases 

involving out-of-state funerals, an additional two (2) days may be 

granted. Additional time off for this purpose must be vacation, 

C.T.O., or unpaid leave. 

3.5 Personal Leave 

Bereavement leave must be approved by the Department head. 

3.5.1 Current employees shall receive forty-eight (48) hours of Personal 

Leave per year beginning July 1st. Unused Personal Leave as of 

June 30 shall be paid off at the regular rate of pay the succeeding 

month. 

3.5.2 Employer shall pro-rate Personal Leave up to a maximum of four (4) 

hours per month for new hires and for every month during the fiscal 

year for which an employee was employed before termination of 

City service. 

3.6 Family Care and Medical Leave Policy 

3.6.1 In accordance with the Federal Family and Medical Leave Act 

(FMLA) and the California Family Rights Act (CFRA), the City of 

Watsonville (City) will provide unpaid family and medical care 

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leave for eligible employees for up to 12 weeks per 12-month period 

for the following reasons only: 

a. The birth of a child or to care for a newborn of an employee; 

b. The placement of a child with an employee in connection 

with the adoption or foster care of a child; 

c. Leave to care for a child, parent or spouse who has a serious 

health condition; or 

d. Leave because of a serious health condition that makes the 

employee unable to perform the functions of his/her position. 

3.6.2 An employee is eligible for leave if the employee: 

a. Has been employed for at least 12 months; and 

b. Has been employed for at least 1,250 hours during the 12- 

month period immediately preceding the commencement of 

the leave. 

3.6.3 If an employee requests leave for any reason permitted under this 

policy, he/she must exhaust all accrued leaves (except sick leave) in 

connection with the leave. The exhaustion of accrued leave will run 

concurrently with the leave under this policy. 

If an employee requests leave for his/her own serious health 

condition, in addition to exhausting accrued leave, the employee 

must also exhaust accrued sick leave. Workers’ compensation and 

disability leave will run concurrently with family 

leave. 

3.6.4 This section provides a benefit summary only. For further 

information, refer to the City’s Administrative Rule on this subject. 

4.0 MANAGEMENT RIGHTS 

All City rights, under state law and charter, and all City rights which existed prior 

to the recognition of the Confidential Unit shall remain vested with the City, unless 

expressly abridged by the M.O.U. These rights include, but are not limited to: 

-- the exclusive right to determine the mission of its constituent departments, 

commissions, boards; 

-- set standards and levels of service; 


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-- determine the procedures and standards of selection for employment and 

promotions; 

-- direct its employees; 

-- establish and enforce dress and grooming standards; 

-- determine the methods and means to relieve its employees from duty 

because of lack of work or other lawful reasons; 

-- maintain the efficiency of governmental operations; 

-- determine the methods, means and numbers and kinds of personnel by 

which government operations are to be conducted; 

-- determine the content and intent of job classifications; 

-- determine methods of financing; 

-- determine style and/or types of City-issued wearing apparel, equipment or 

technology to be used; 

-- determine and/or change the facilities, methods, technology, means, 

organizational structure and size and composition of the work force and 

allocate and assign work by which the City operations are to be conducted; 

-- determine and change the number of locations, relocations and types of 

operations, processes and materials to be used in carrying out all City 

functions including, but no limited to, the right to contract for or 

subcontract any work or operations of the City; 

-- To assign work to and schedule employees in accordance with requirements 

as determined by the City and to establish and change work schedules and 

assignments upon reasonable notice; 

-- establish and modify productivity and performance programs and standards; 

-- discharge, suspend, demote, reprimand, withhold salary increases and 

benefits, or otherwise discipline employees in accordance with applicable 

law; 

-- establish employee performance standards including, but not limited to, 

quality and quantity standards, and to require compliance therewith; 

-- take all necessary actions to carry out its mission in emergencies; and 

-- exercise complete control and discretion over its organization and the 

technology of performing its work. 


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The City Manager and Department Heads have and will continue to retain 

exclusive decision-making authority on matters not officially and expressly 

modified by specific provisions of this M.O.U. 

In the exercise of the rights set forth in Section 4.0, the City has the right to make 

reasonable rules and regulations. 

5.0 PEACEFUL PERFORMANCE 

During the life of this Agreement, Unit employees shall not engage in any work 

stoppages, strikes, slow-downs, or boycott picketing. No lock-outs shall be made 

by the City. 

In the event that any employee covered by this Agreement, individually or 

collectively, violates the provisions of this section, the Association shall make a 

good faith effort to stop such violations of this section. 

6.0 RETIREMENT 

6.1 Credit for Unused Sick Leave 

The City provides the CalPERS 2% @ 55 retirement program plan, 

including PERS Section 20862.8 - Credit for Unused Sick Leave. 

6.2 Retirement Re-opener 

The parties agree to meet and confer in Spring 2008 to discuss amending 

the City’s contract with CalPERS to provide the single highest year benefit. 

The provision of this benefit must be at no cost to the City. 

7.0 MISCELLANEOUS 

7.1 IRS-125 Program 

The City will maintain in effect the IRS 125 Program to include at least the 

dependent care option. 

7.2 Mileage 

The City shall utilize the IRS rate for mileage reimbursement. 

7.3 Flexible Schedules 

The City acknowledges that there may be benefits both to the City and to 

the employees in alternative schedules. Employees may request that their 

Department Heads consider alternative scheduling of their work. Examples 


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of alternate schedules include flex time, job sharing, voluntary work hours, 

and alternate work schedules. 

Employees on flexible schedules shall continue to accrue time on the 

standard 8-hour day. Accrued leaves shall be charged based on the number 

of hours missed due to their flexible schedule. 

7.4 Health Saving Account 

8.0 ENACTMENT 

The City will work to establish a voluntary retiree Health Savings account 

and will meet and confer with the unit regarding the potential benefit 

structure prior to implementation. 

The Agreement shall become effective upon ratification by the City Council of the 

City of Watsonville and shall remain in full force and effect until June 30, 2010, or 

until a new Agreement has been executed. 


Date: ___________ 

______________________________________ 

______________________________________ 


Date: ___________ 

_______________________________________ 



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APPENDIX A

APPENDIX A

APPENDIX A



(CM) 





OF THE CITY AND THE MANAGEMENT UNIT FOR 

FISCAL YEAR 2009-2010 


Employee Relations Officer and the Management Unit, 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 




Reso No. (CM) 

Q:\COUNCIL\2009\052609\MOU Management.docx 

ri 5/21/2009 3:54:21 PM 

1 

AJS ______ CJP ______



FOLLOWS: 


Municipal Employee Relations Officer and the Management Unit, 




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

Reso No. 239-05 (CM) 

Q:\COUNCIL\2009\052609\MOU Management.docx 

bvf 5/21/2009 3:54:21 PM 

2


BETWEEN 

THE MUNICIPAL RELATIONS OFFICER 

OF THE CITY OF WATSONVILLE AND 

ITS MANAGEMENT UNIT 

2009-2010


1.0 COMPENSATION ........................................................................................................... 2 

1.1 Salary Adjustment ............................................................................................................. 2 

1.2 Special Salary Adjustment ................................................................................................. 2 

1.3 Retirement Contribution .................................................................................................... 3 

1.4 Administrative Leave ......................................................................................................... 4 

1.5 Overtime Pay ..................................................................................................................... 4 

1.6 Auto Policy ........................................................................................................................ 4 

1.7 Department Heads - At-Will Status and Severance Pay .................................................... 5 

1.8 Uniform Allowance ........................................................................................................... 6 

1.9 Bilingual Pay ..................................................................................................................... 6 

1.10 Notary Pay ..................................................................................................................... 7 

1.11 Educational Incentive Pay for Fire Battalion Chiefs ..................................................... 7 

2.0 INSURANCE .................................................................................................................... 7 

2.1 Health Insurance ................................................................................................................ 7 

2.2 Excess Disability Insurance ............................................................................................... 8 

2.3 Long Term Disability Insurance ........................................................................................ 9 

2.4 Life Insurance .................................................................................................................... 9 

3.0 LEAVES ............................................................................................................................ 9 

3.1 Vacation Leave .................................................................................................................. 9 

3.2 Holidays ........................................................................................................................... 10 

3.3 Sick Leave ....................................................................................................................... 10 

4.0 RETIREMENT RE-OPENERS .................................................................................... 11 

4.1. Single Highest Year Re-opener ................................................................................... 11 


5.1 Health Savings Account .................................................................................................. 11 

6.0 ENACTMENT ................................................................................................................ 11 

Management 2009-2010 MOU CC Draft 

5/21/2009 1:40 PM


BETWEEN THE MUNICIPAL RELATIONS OFFICER 

OF THE CITY OF WATSONVILLE AND ITS MANAGEMENT UNIT 

This Memorandum of Understanding (MOU) sets forth the agreement between the 

Municipal Relations Officer of the City of Watsonville (MRO) and the City’s Management 

Unit (Unit) as to all matters within the scope of representation for the employees of the City 

represented by the Unit. This MOU is authorized by and made pursuant to Council 

Resolution 56-08 (CM) adopted April 8, 2008 and Rules and Regulations adopted pursuant 

thereto. The MRO and the undersigned on behalf of the Unit hereby agree to jointly 

recommend to the City Council of the City of Watsonville that one or more Resolutions be 

adopted effectuating the following changes in benefits and other terms and conditions of 

employment for all the employees in the Unit. The members of the Unit, by accepting the 

benefits hereof, agree to be bound by the terms and conditions of this MOU. 

This MOU shall become effective July 1, 2009, and shall terminate on June 30, 2010. 

All benefits in effect on the date set forth below and not modified by this MOU or 

Appendix A shall remain in effect for the term of this MOU, except as provided herein. 


1.1 Salary Adjustment 


2006, base salaries shall increase by 3.75%. 

1.1.2 Effective the first full payroll period on or after January 2007, and 

effective concurrently with the changes proposed in section 1.3, base 

salaries shall increase by 3%. 

1.1.3 Effective the first full payroll period on or after July 1, 2007, base 

salaries shall be increased 3.5%. 

1.1.4 Effective the first full payroll period with a beginning date on or after 

July 1, 2008, all members in the Unit who have been compensated at 

the top “G” step of the salary range for at least one year (2080 hours) 

and who have a current evaluation with an overall rating of at least 

“Satisfactory” shall be advanced to a new step that is 5% higher on the 

salary schedule. This elevated step shall then become the new top “G” 

step. All other steps below this new “G” step shall be re-lettered 

accordingly with the current “A” step being eliminated. All employees 

below the elevated “G” step, while at a re-lettered step, remain at their 

current salary rate, but shall advance in step at their normal anniversary 

date in accordance with existing City rules on step advancement. 

1.2 Special Salary Adjustment 


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1.2.1 Effective the first full payroll period following adoption of this 

agreement by the Council, the base salary of the Administrative 

Services Director classification shall be increased by 5% in order to 

maintain salary parity with related classifications in the Management 

Unit. 

1.3 Retirement Contribution 

1.3.1 Miscellaneous Employees Retirement Contribution. For the term of 

this agreement, the City agrees to contribute to the California Public 

Employees’ Retirement System (CalPERS) on behalf of each Unit 

miscellaneous employee, seven percent (7%) of the employee's 


(hereinafter "7%"). Effective the first full payroll period beginning after 

January 1, 2007 the City contribution shall be reduced to four percent 

(4%) of the employee’s compensation. 

1.3.2 Public Safety Employees Retirement Contribution. For the term of 

this agreement, the City agrees to contribute to CalPERS on behalf of 

each Unit public safety employee, nine percent (9%) of the employee's 


(hereinafter "9%"). Effective the first full payroll period beginning after 

January 1, 2007 the City contribution shall be reduced to six percent 

(6%) of the employee’s compensation. 

1.3.3 Effective upon ratification of this agreement, the City shall begin 

reporting the four percent (4%) retirement contribution for 

Miscellaneous members and the six percent (6%) retirement 

contribution for Public Safety members of the Management Unit as 

special compensation. Pursuant to Section 20636 (c)(4) of the 

California Government Code, these retirement contributions shall then 

be considered compensation for retirement purposes. 

1.3.4 Said retirement contributions for miscellaneous and public safety 

employees shall be considered deferred compensation, not salary, and 

shall be credited to the Unit employee's retirement account. Any future 

income tax obligation resulting from these contributions shall be the 

exclusive responsibility of the employee. If the Internal Revenue 

Service changes its current position and determines that such 




1.3.5 Retirement Tax Deferment. The City shall maintain the IRS Sec. 

414(h)(2) provision allowing employees to make employee retirement 

contributions with pretax (tax deferred) dollars. 


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1.4 Administrative Leave 

1.4.1 Current employees shall receive Administrative Leave of 11 days per 

year beginning July 1st. Unused Administrative Leave as of June 30 

shall be paid off at the regular rate of pay the succeeding month 

1.4.2 Employer shall pro-rate Administrative Leave up to a maximum of 7.33 

hours per month for new hires and for every month during the fiscal 

year for which an employee was employed before termination of City 

service. 

1.5 Overtime Pay 

Not withstanding that employees are exempt from the FLSA, upon issuance of 

a Proclamation of a local emergency by the City Council or the Director of 

Emergency Services pursuant to Chapter 2 of Title 4 of the Municipal Code, 

Unit employees are eligible for overtime compensation. Such overtime 

eligibility shall cease when the City Manager determines that the disaster 

response has ended. 

1.6 Auto Policy 

1.6.1 A monthly automobile allowance of $400 shall be provided to all 

Department Heads and Assistant Department Heads not assigned 

and/or utilizing a City vehicle and to the Airport Manager. Effective 

the first full payroll period on or after January 1, 2007, the Assistant 

Department Heads not assigned and/or utilizing a City vehicle and the 

Airport Manager shall discontinue receipt of the auto allowance and 

instead, receive an additional $400 in base salary. 

1.6.2 The car allowance will be pro-rated for the month in which Unit 

employees leave City service. 

1.6.3 Mileage reimbursement for Unit employees shall be at the Federal IRS 

allowable reimbursement rate. 

1.6.4 The parties agree to meet and confer in Spring 2007 to discuss 

amending Section 1.6.1 to convert to base salary the monthly 

automobile allowance paid to eligible Department Heads not assigned 

and/or utilizing a City vehicle. The provision of this benefit must be at 

no cost to the City. 


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1.7 Department Heads - At-Will Status and Severance Pay 

1.7.1 As provided in Section 1001 of the City Charter, the City Manager, 

City Clerk, City Attorney, and each Department head are in the general 

service (i.e. at-will). Section 800 of the City Charter provides that the 

City Council shall establish by ordinance, not inconsistent with the 

Charter for the organization, conduct and operation of several offices, 

departments, and other agencies of the City. Section 800 goes on to 

provide that the City Council may also by ordinance establish 

additional departments and/or alter or abolish existing departments 

and/or assign and reassign duties and responsibilities to departments. 


5/21/2009 1:40 PM 

For purposes of this MOU, general service or at-will status shall mean 

the right to terminate the employment relationship for any reason, with 

or without cause, with or without notice, without further obligation or 

liability except for the severance pay provided under Section 1.7.2 of 

this MOU. This provision supersedes any contrary oral agreements 

between the City and any Unit employee identified below. 

The City need not state reasons for release of such identified at-will or 

general service employees, and such employees have no right or 

expectation to have release or post-release proceedings, hearings, or 

appeals, except persons subject to the Public Safety Officer Procedural 

Bill of Rights (Govt. Code Section 3300 et seq). Specifically, the Chief 

of Police shall be afforded the protections of subdivision (c) of Section 

3304 of the Government Code. 

As of the date of this MOU, the following positions are at-will and 

subject to general service. These employees have no right to return to 

employment in a former position or a right to employment in a former 

position, or a right to employment in any other position within the City 

by reason of their employment status: 

Director of the Department of Community Development 

Director of the Department of Finance 

Director of the Department of Housing and Economic 

Development 

Director of the Library 

Director of the Department of Parks and Community Services 

Director of the Department of Public Works and Utilities 

Assistant City Manager 

Deputy City Manager 

Fire Chief 

Police Chief 

No statement, whether oral or written, or conduct may change such 

status, except a formal resolution of the Council resolved at a duly held 

meeting adopting a change of the terms of this MOU. Apart from the

Council at a duly noticed meeting no person employed by the City has 

the authority to modify the at-will or general service status of such of 

head of department employees. If additional positions are sought to be 

added to this list, the City and the Unit will jointly review and agree to 

the addition of that position however no positions shall be added to atwill 

general services except by written agreement. 

1.7.2 Such at-will general service employees shall be entitled to receive three 

months severance pay if involuntarily terminated by the City. 

Excluded from the severance pay provision are terminations for illegal 

activities, gross malfeasance or dereliction of duties or absence from 

employment without a good cause. 

1.8 Uniform Allowance 

Uniform allowance shall be Six Hundred ($600.00) Dollars per year for public 

safety members of the Management Unit for the purchase and maintenance of 

required uniform items and footwear. 



In order to receive Level I bi-lingual premium pay employees 

proficient in the Spanish language must meet the following criteria: 

(a) 

(b) 




annual testing requirement for individuals upon 

recommendation of the Department Head. Annual basis refers 

to fiscal year; and 

The employee is required to serve as an oral interpreter and 

provide basic written translations on a regular and on-going 

basis, as certified by the Department Head 


(a) 

For employees hired after November 1, 2006 the City shall pay 

a stipend of $250/month, pro rated for part time employees. 

(b) 


5/21/2009 1:40 PM 

Employees eligible for Level I Premium Pay before November 

1, 2006 shall receive premium pay equal to five percent (5%) of 

his/her base salary as of November 1, 2006, with the premium 

rounded to the nearest dollar, and exclusive of any retroactive 

wage increases provided under this agreement. A list of each 

employee’s premium pay under this section will be provided to

the Unit. Employees who receive the five percent premium, 

above, may irrevocably opt into the $250/month stipend 

specified in (a) above. 


In addition to the Level I stipend the City will designate a limited 

number of staff as Level II Bilingual Translators. Such Level II 

Bilingual Translators shall perform written translations that are viewed 

by a large audience of City residents (i.e. City mailers, City Council 

minutes, inserts in City utility bills, etc.). Level II Bilingual Translators 

must meet all requirements under Level I prior to applying for Level II 

consideration. 

(a) 

(b) 

Qualified Level II Translators shall receive the Level I stipend 

as outlined in 1.9.2 (b) and an additional $100/month. 

To evidence competency as a Level II Translator, employees 

must pass a skills-based test administered by the City to 

demonstrate competency in written translation. 

1.10 Notary Pay 

Employees authorized by their department head to act as a notary for official 

City business shall receive an additional fifty ($50) dollars per month pay. This 

provision will become effective on the payroll period with a beginning date on 

or after January 1, 2006 

1.11 Educational Incentive Pay for Fire Battalion Chiefs 

Those employees in the classification of Fire Battalion Chief will receive and 

be subject to the same educational incentive pay provisions as currently 

applied to those employees in the Firefighters Unit. However, in applying to 

Fire Battalion Chiefs, such provision will be modified by substituting Certified 

Fire Officer courses for Level I courses. This provision will become effective 

on the payroll period with a beginning date on or after January 1, 2006 

2.0 INSURANCE 


2.1.1 The City shall maintain in effect current health insurance coverages 

for all full-time Unit employees in the competitive and general 

services. 

2.1.2 The City shall contribute the following monthly amounts towards 

health insurance coverage for employees defined above in Section 2.1.1 


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October 1, 2006 $776.15 

July 1, 2007 $821.15 

2.1.3 Should the City contributions and employee contributions/plan changes 

fail to fund the Self-Funded Health Plan without a deficit for fiscal year 

2008/2009, The City and employees agree to each contribute up to 

$45.00 each (in either additional premiums or plan changes) to fund the 

plan. If additional funding is needed, the parties agree to re-open this 

section to discuss additional City and employee contributions/plan 

changes and/ or a change from self-funded health plan. Such a reopener 

shall occur no later than May 30, 2008. 

2.1.4 Regular part-time employees will be fully covered at the employee only 

level at the City's expense. The employee shall have the option of 

covering additional dependents at their own expense. This shall be 

determined by utilizing the three tier rate which the City has established 

for the COBRA and other purposes (less any surcharges). To cover one 

(1) dependent, the employee will pay the difference between the 

employee only rate and the employee plus one rate. To cover the 

family, the employee will pay the difference between the employee 

only rate and the full family rate under the three tiers. 

The decision to cover family members shall be made during a one time 

election when this provision becomes effective. Thereafter, employees 

may only add or delete family members in accordance with plan rules. 

2.1.5 For any member of the Unit who uses all leave due to illness or injury, 

which is not a Workers' Compensation claim, the City shall maintain 

the health insurance coverage and pay the premium on behalf of the 

member for an additional thirty (30) days. 


Employees Health Committee (CEHC) as outlined in the bylaws dated 

July 1992. 


2.2.1 In the event of job-related injury or illness, the employee will receive 

the maximum weekly Workers' Compensation benefit as determined by 

State law. This does not supersede Workers' Compensation laws 

relating to Public Safety employees. 


amount of accrued sick leave pay to provide for the difference between 

the established Workers' Compensation amount and the employee's 

regular gross pay. 


5/21/2009 1:40 PM

2.2.3 The employee may also receive $50.00 per week extra disability 

coverage in lieu of accrued sick leave pay. 

2.2.4 In no event shall the combination of Workers' Compensation benefits 

exceed the regular gross pay of the affected employee. 



coverage option described in Section 2.2.3 above is to be implemented. 




2.2.7 The $50.00/week excess coverage shall not apply until the seventh 

(7th) calendar day following injury or illness event. 


The City shall continue paying the Long Term Disability Insurance premium 

for the Unit members for the term of the agreement. 


3.0 LEAVES 

Life insurance coverage is Fifty ($50,000) Thousand Dollars for all Unit 

employees. 

3.1 Vacation Leave 

1st year 

12 days 

2nd year 

13 days 

3rd year 

14 days 

4th year 

15 days 

5 - 10 years 16days 

11+ years 20day 

3.1.1 Vacation Leave for Fire Battalion Chiefs 

Those employees in the classification of Fire Battalion Chief will 

receive and be subject to the same vacation leave provisions as 

currently applied to those employees in the Firefighters Unit. This 

provision will become effective on the payroll period with a 

beginning date on or after January 1, 2006 


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3.2 Holidays 



January 21 (Martin Luther King Day) 


Third Monday in February (Washington's Birthday) 


July Fourth 








Recognized holidays which fall on Saturday shall be observed on the preceding 

scheduled work day. Recognized holidays which fall on a Sunday shall be 

observed on the following scheduled work day. 



regulations. 


3.3.1 Each employee shall accrue sick leave in the amount of one and one 

quarter (1-1/4) days per month of service (10 hours). Sick leave is 

payable per City Personnel Rules and Regulations. 


hours). Sick leave accumulated in any calendar year in excess of 125 

days (1,000 hours) shall be paid at the rate of 50% of such excess. The 

balance of such unused sick leave is lost and the sick leave accrual is 

reduced to 125 days (1,000 hours) at January 1 of each year. Unused 

sick leave may not be used to delay the date of an employee's disability 

retirement. 

3.3.3 Those employees in the classification of Fire Battalion Chief will 

receive and be subject to the same sick leave provisions as currently 

applied to those employees in the Firefighters Unit. This provision will 

become effective on the payroll period with a beginning date on or after 

January 1, 2006 


5/21/2009 1:40 PM

4.0 RETIREMENT RE-OPENERS 

4.1. Single Highest Year Re-opener 

The parties agree to meet and confer in Spring 2008 to discuss amending the 

City’s contract with CalPERS to provide the single highest year benefit. The 

provision of this benefit must be at no cost to the City and all bargaining units 

with CalPERS Miscellaneous members shall have to agree to implement 


5.1 Health Savings Account 

6.0 ENACTMENT 

The City will work to establish a voluntary retiree Health Savings account and 

will meet and confer with the unit regarding the potential benefit structure 

prior to implementation. 

This MOU shall become effective upon ratification by the City Council of the City of 

Watsonville, and shall remain in full force and effect until June 30, 2010, or until a 

new MOU has been executed 

MANAGEMENT UNIT 

Date___________ 

Date___________ 

Date___________ 

Date___________ 

_________________________________ 

_________________________________ 

_________________________________ 

_________________________________ 


Date____________ 

_________________________________ 



5/21/2009 1:40 PM

APPENDIX A

APPENDIX A

APPENDIX A



(CM) 




THE CITY OF WATSONVILLE AND THE MID- 

MANAGEMENT UNIT FOR FISCAL YEAR 2009-2010 


Employee Relations Officer and representatives of the Mid- 

Management Unit, 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 




reviewing said Memorandum of Understanding hereby determines 


Reso No. (CM) 

Q:\COUNCIL\2009\052609\MOU Mid Mgmnt.docx 

ri 5/21/2009 3:58:03 PM 

1 

AJS ______ CJP ______



FOLLOWS: 

That the Memorandum of Understanding between the City of 

Watsonville and the Mid-Management Unit, a copy of which is 




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

Reso No. 115-05 (CM) 

Q:\COUNCIL\2009\052609\MOU Mid Mgmnt.docx 

ri 5/21/2009 3:58:03 PM 

2


BETWEEN 

MID-MANAGEMENT UNIT 

AND 


2009-2010 

Mid-Mgmt 2009-2010 MOU CC Draft 1 

5/21/2009 1:44 PM

TABLE OF CONTENT 

1.0 COMPENSATION .................................................................................................... 3 

1.1 SALARY ADJUSTMENTS ............................................................................................. 3 

1.2 WATER CERTIFICATION ............................................................................................. 4 

1.3 ADMINISTRATIVE LEAVE ........................................................................................... 4 

1.4 COMPENSATORY TIME OFF (CTO) ............................................................................ 5 

1.5 ON CALL/CALL BACK PAY ........................................................................................ 5 

1.6 BILINGUAL PAY ......................................................................................................... 6 

1.7 RETIREMENT .............................................................................................................. 7 

1.8 DEFERRED COMPENSATION ....................................................................................... 8 

2.0 INSURANCE .............................................................................................................. 8 

2.1 HEALTH INSURANCE .................................................................................................. 8 

2.2 EXCESS DISABILITY INSURANCE................................................................................ 9 

2.3 DISABILITY INSURANCE ........................................................................................... 10 

2.4 LIFE INSURANCE ...................................................................................................... 10 

3.0 LEAVES.................................................................................................................... 10 

3.1 VACATION LEAVE ................................................................................................... 10 

3.2 HOLIDAYS ............................................................................................................... 10 

3.3 SICK LEAVE ............................................................................................................. 11 

3.4 FAMILY CARE AND MEDICAL LEAVE ACT .............................................................. 11 

4.0 MANAGEMENT RIGHTS ..................................................................................... 12 

5.0 PEACEFUL PERFORMANCE ............................................................................. 14 

6.0 MISCELLANEOUS ................................................................................................ 14 

6.1 BOOT ALLOWANCE .................................................................................................. 14 

6.2 TOOL ALLOWANCE .................................................................................................. 14 

6.3 TOOL INSURANCE .................................................................................................... 15 

6.4 MILEAGE ................................................................................................................. 15 

6.5 CERTIFICATION ........................................................................................................ 15 

6.6 CERTIFICATE PAY .................................................................................................... 15 

6.7 IRS-125 PROGRAM .................................................................................................. 15 

6.8 IMMUNIZATIONS ...................................................................................................... 15 

6.9 HEALTH SAVING ACCOUNT ..................................................................................... 15 

7.0 DEFINITION OF MID-MANAGEMENT ............................................................ 15 

8.0 FLEXIBLE/ALTERNATE WORK SCHEDULES .............................................. 16 

9.0 ENACTMENT.......................................................................................................... 16 


5/21/2009 1:44 PM


BETWEEN 


AND 


2009-2010 


of the Mid-Management Unit and the representatives of the City of Watsonville on all 

matters contained herein for employees of the City of Watsonville in the Mid-Management 

Unit. The parties hereto agree to jointly recommend to the City Council of the City of 

Watsonville that one or more resolutions be adopted effectuating the following changes in 

the salaries, benefits, and other terms and conditions of employment for said employees in 

the Mid-Management Unit. 

This Agreement shall become effective July 1, 2009, and shall terminate June 30, 2010. 




1.1 Salary Adjustments 

1.1.1 Effective retroactive to the first full payroll period after July 1, 2006, 

base salaries shall be increased by 3.5%. 

1.1.2 Effective the first full payroll period in January 2007, and effective 

concurrently with the changes proposed in section 1.7 base salaries 

shall increase by 3%. 

1.1.3 Effective the first full payroll period with a beginning date on or 

after July 1, 2007, all members in the bargaining unit who have been 

compensated at the top “G” step of the salary range for at least one 

year (at least 2080 hours) shall be advanced to a new step that is 5% 

higher on the salary schedule. This elevated step shall then become 

the new top “G” step. All other steps below this new “G” step shall 

be re-lettered accordingly with the current “A” step being 

eliminated. All employees below the elevated “G” step, including 

those at the current "A" step, while at a re-lettered step, remain at 

their current salary rate, but shall advance in step at their normal 

anniversary date in accordance with existing City rules on step 

advancement. 


5/21/2009 1:44 PM



1.2 Water Certification 

Any incumbent in the below classifications who obtains a certification in a 

grade above that required for the incumbent’s certification level will receive 

$50/month per additional certification level up to a maximum of 

$100/month. For purposes of these higher than required certification levels 

discussed in this paragraph, the following job classifications are eligible to 

receive this additional certification pay: 

Wastewater Operations Supervisor 

Field Services Manager 

Laboratory Manager 

Source Control Manager 

Crew Leader 

Field Services Supervisor 

Water Operations Supervisor 


1.3.1 Current employees shall receive Administrative Leave of eleven (11) 

days per year beginning July 1st. Unused Administrative Leave as 

of June 30 shall be paid off at the regular rate of pay the succeeding 

month 

1.3.2 Employer shall pro-rate Administrative Leave up to a maximum of 

7.33 hours per month for new hires and for every month during the 

fiscal year for which an employee was employed before termination 

of City service. 

1.3.3 All employees hired after November 27, 2001, shall receive 

administrative leave. Any employees hired prior to the ratification of 

this Agreement who chooses not to receive above Administrative 

Leave may earn overtime. All overtime shall be paid at one and onehalf 

(1-1/2) the regular rate of pay over the forty (40) hour 

workweek. This option may be chosen annually; however, once an 

employee elects to participate in Administrative Leave, they may not 

return to the Overtime Option. 

1.3.4 Notwithstanding that employees are exempt from the FLSA, upon 

issuance of a Proclamation of a local emergency by the City Council 


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or the Director of Emergency Services pursuant to Chapter 2 of Title 

4 of the Municipal Code, Unit employees are eligible for overtime 

compensation. Such overtime shall cease when the City Manager 

determines that the disaster response has ended. 

1.3.5 For purposes of overtime, CTO, vacation, and sick leave accrual, 

holidays shall be considered as time worked. Employees who work 

on a holiday shall be entitled to overtime compensation for hours 

worked provided that all other rules relating to overtime accrual are 

satisfied. 

1.4 Compensatory Time Off (CTO) 

1.4.1 Employees choosing the overtime option may accrue up to a 

maximum of forty (40) hours CTO in lieu of overtime pay. There is 

no annual cap at any one time of earned CTO. 

1.4.2 CTO shall accrue at the regular overtime rate of one and one-half (1- 

1/2) hours of CTO for each hour of overtime worked. 

1.5 On Call/Call Back Pay 

1.5.1 Weekly On-Call: 

Covered employees who are required to be on call shall be compensated at 

the rate of Two Hundred Ten ($210) Dollars per week in addition to their 

regular pay. Covered employees who are called back to work shall receive a 

minimum of three (3) hours overtime compensation except when such recall 

is an extension of their regular work day, either before or after the assigned 

work period. 

1.5.2 Daily On-Call: 

Employees shall receive $30/day for daily on-call which shall be assigned 

when it is anticipated that special circumstances may occur that would 

require work during periods other than the normal work hours. Such special 

circumstances include forecasts of heavy rains and/or flooding, earthquake 

and other natural disasters, and special events. Notice regarding the need for 

on-call status would be given to employees as soon as such need is known 

but no later than 8 hours prior to the start of the on-call status period. On- 

Call will first be assigned to volunteers in the classification deemed 

necessary for the on-call work. If there are insufficient volunteers, daily oncall 

will be assigned in inverse order of seniority. 

1.5.3 Entitlement to on-Call Pay: 


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Employees who are assigned to be on weekly or daily on-call shall be 

entitled to on call and recall pay regardless of whether they receive 

administrative leave or overtime under section 1.3, above. 





(a) 

(b) 



maintain the premium pay. The City Manager may waive the annual 

testing requirement for individuals upon recommendation of the 

Department Head. Annual basis refers to fiscal year; and 


basic written translations on a regular and on-going basis, as certified 

by the Department Head 


(a) 

For employees hired after November 1, 2006 the City shall pay a 

stipend of $250/month, pro rated for part time employees. 

(b) Employees eligible for Level I Premium Pay before November 1, 

2006 shall receive premium pay equal to five percent (5%) of his/her 

base salary as of November 1, 2006, with the premium rounded to 

the nearest dollar, and exclusive of any retroactive wage increases 

provided under this agreement. A list of each employee’s premium 

pay under this section will be provided to the Mid Management Unit. 

Employees who receive the five percent premium, above, may 

irrevocably opt into the $250/month stipend specified in (a) above. 





residents (i.e. City mailers, City Council minutes, inserts in City utility bills, 

etc.) 

(a) 



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(b) 




1.7 Retirement 

1.7.1 For the term of this Agreement, the City agrees to contribute to the 

Public California Employees’ Retirement System ("CalPERS") on 

behalf of each employee, seven percent (7%)of the employee's 


(hereinafter "7%"). Effective the first full payroll period in January 

2007 the City contribution shall be reduced to four percent (4%) of 

the employee’s compensation. Said contributions shall be considered 

deferred compensation, not salary, and shall be credited to the 

employee's retirement account. Any future income tax obligations 

resulting from these contributions shall be the exclusive 

responsibility of the employee. In the event the Internal Revenue 

Service shall change its current position and determine that such 




For purposes of salary comparison, the employee retirement 

contribution paid by the City shall be considered as part of base pay. 

1.7.2 Special Compensation: 

The City shall report the employees’ four percent (4%) retirement 

contribution as special compensation. Pursuant to Section 20636 

(c)(4) of the California Public Employees Retirement Law, this four 

percent (4%) retirement contribution shall then be considered 

compensation for retirement purposes. 

1.7.3 Retirement Re-Opener: 

The parties agree to meet and confer in Spring 2008 to discuss 

amending the City’s contract with CalPERS to provide the single 

highest year benefit. The provision of this benefit must be at no cost 

to the City. 

1.7.4 Credit for Unused Sick Leave: 


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The City shall continue in effect the 2% @ 55 retirement program 

with all current options including CalPERS Section 20862.8 - Credit 

for Unused Sick Leave. 


The City shall maintain the IRS Sec. 414(h)(2) provision allowing 

employees to make employee retirement contributions with pretax 

(tax deferred) dollars. 




2.0 INSURANCE 


2.1.1 The City shall retain in effect current health insurance coverages for 

all Unit employees. The City shall contribute the following monthly 


October 1, 2006 $776.15 

July 1, 2007 $821.15 


changes fail to fund the Self-Funded Health Plan without a deficit 

for fiscal year 08/09, The City and employees agree to each 

contribute up to $45.00 each (in either additional premiums or plan 

changes) to fund the plan. If additional funding is needed, the 

parties agree to re-open this section to discuss additional City and 

employee contributions/plan changes and/ or a change from selffunded 

health plan. Such a re-opener shall occur no later than May 

30, 2008. 


Employees Health Committee (CEHC) as outlined in the bylaws 

dated July 1992. 

2.1.4 Implementation of changes in medical insurance will be subject to 

the meet and confer process between the City and the Unit. 

2.1.5 Regular part-time employees will be fully covered at the employee 

only level at the City's expense. The employee shall have the option 


5/21/2009 1:44 PM

of covering additional dependents at their own expense. This shall 

be determined by utilizing the three-tier rate which the City has 

established for the COBRA and other purposes (less any surcharges). 

To cover one (1) dependent, the employee will pay the difference 

between the employee only rate and the employee plus one rate. To 

cover the family, the employee will pay the difference between the 

employee only rate and the full family rate under the three tiers. 

The decision to cover family members shall be made during a one 

time election when this provision becomes effective. Thereafter, 

employees may only add or delete family members in accordance 

with plan rules. 

Regular part-time employees employed on or before December 1, 

1998, in the thirty (30) hour category, shall continue to receive full 

health insurance benefits. 

2.1.6 For any member of the Unit who expires all leave due to illness or 

injury, which is not a Workers’ Compensation claim, the City shall 

maintain the health insurance coverage and pay the premium on 

behalf of the member for an additional thirty (30) days. 


2.2.1 In the event of job-related injury or illness, the employee will receive 

the maximum weekly Workers' Compensation benefit as determined 

by State Law. 


amount of accrued sick leave pay to provide for the difference 

between the established Workers' Compensation amount and the 

employee's regular gross pay. 

2.2.3 The employee may also receive Fifty ($50.00) Dollars per week 

extra disability coverage in lieu of accrued sick leave pay. 





coverage option described in Section 2.2.3 above is to be 

implemented. 


5/21/2009 1:44 PM




2.2.7 The Fifty ($50.00) Dollar per week excess coverage shall not apply 

until the seventh (7th) calendar day following the injury or illness 

event. 

2.3 Disability Insurance 

The City shall maintain in effect the existing disability insurance program 

for Unit employees at City expense. 


3.0 LEAVES 

The City shall provide a Fifty Thousand ($50,000) Dollars per employee life 

insurance policy upon ratification for the term of this Agreement. 


3.1.1 Each employee shall accrue vacation as specified below: 




The maximum vacation accruals shall be two (2) times the annual 

vacation accrual amount. 

3.2 Holidays 



Martin Luther King's Birthday (Third Monday in January) 


Washington's Birthday (Third Monday in February) 

Memorial Day (Last Monday in May) 

July Fourth 

Labor Day (First Monday in September) 

Veterans Day (November 11) 


5/21/2009 1:44 PM


Friday following Thanksgiving Day (in lieu of Election Day) 


Christmas Day (December 25) 



preceding scheduled work day. 

Recognized holidays which fall on a Sunday shall be observed on the 

following scheduled work day. 



regulations. 


3.3.1 Each employee shall accrue sick leave in the amount of one and onequarter 

(1-1/4) days per month of service (10 hours). Sick leave is 

payable only in the cases of bona fide illness or injury. 


hours). Sick leave accumulated in any calendar year in excess of 

125 days (1,000 hours) shall be paid at the rate of fifty (50%) 

percent of such excess. The balance of such unused sick leave is 

lost and the sick leave accrual is reduced to 125 days (1,000 hours) 

on January 1 of each year. 

3.3.3 Employee sick leave, not to exceed three (3) days may be used for 

the care of immediate family in the event of illness, upon approval of 

the Department Head. 



3.4 Family Care And Medical Leave Act 


(FMLA) and the California Family Rights Act (CFRA), the City of 

Watsonville (City) will provide unpaid family and medical care 

leave for eligible employees for up to 12 weeks per 12-month period 

for the following reasons only: 

a. The birth of a child or to care for a newborn of an employee; 


5/21/2009 1:44 PM

. In connection with the adoption or foster care of a child; 

c. Leave to care for a child, parent or spouse who has a serious 

health condition; or 

d. Leave because of a serious health condition that makes the 

employee unable to perform the functions of his/her position. 


a. Has been employed for at least 12 months; and, 

b. Has been employed for at least 1,250 hours (1,040 hours for 

permanent part-time employees working between 20 and 30 

hours per week) during the 12-month period immediately 

preceding the commencement of the leave. 

3.4.3 If an employee requests leave for any reason permitted under this 

policy, he/she must exhaust all accrued leaves (except sick leave) in 

connection with the leave. The exhaustion of accrued leave will run 

concurrently with the leave under this policy. 


condition, in addition to exhausting accrued leave, the employee 

must also exhaust accrued sick leave. Workers compensation 

disability leave will run concurrently with family leave. 


information, refer to the City’s Administrative Rule on this subject. 


All City rights, under state law and charter, and all City rights which existed prior to 

the recognition of the Mid-Management Unit shall remain vested with the City, 

unless expressly abridged by this M.O.U. These rights include but are not limited 

to: 

• the exclusive right to determine the mission of its constituent departments, 

commissions, boards; 

• set standards and levels of service; 

• determine the procedures and standards of selection for employment and 

promotions; 


5/21/2009 1:44 PM

• direct its employees; 

• establish and enforce dress and grooming standards; 

• determine the methods and means to relieve its employees from duty because of 

lack of work or other lawful reasons; 

• maintain the efficiency of governmental operations; 

• determine the methods, means and numbers and kinds of personnel by which 

government operations are to be conducted; 

• determine the content and intent of job classifications; 

• determine methods of financing; 

• determine style and/or types of City-issued wearing apparel, equipment or 

technology to be used; 

• determine and/or change the facilities, methods, technology, means, organizational 

structure and size and composition of the work force and allocate and assign work 

by which the City operations are to be conducted; 

• determine and change the number of locations, relocations and types of operations, 

processes and materials to be used in carrying out all City functions including, but 

not limited to, the right to contract for or subcontract any work or operations of the 

City; 

• to assign work to and schedule employees in accordance with requirements as 

determined by the City and to establish and change work schedules and assignments 

upon reasonable notice; 

• establish and modify productivity and performance programs and standards; 

• discharge, suspend, demote, reprimand, withhold salary increases and benefits, or 

otherwise discipline employees in accordance with applicable law; 

• establish employee performance standards including, but not limited to, quality and 

quantity standards, and to require compliance therewith; 

• take all necessary actions to carry out its mission in emergencies; and 

• exercise complete control and discretion over its organization and the technology of 

performing its work. 


5/21/2009 1:44 PM

• The exercise by the City through its Council and management representatives of its 

rights hereunder shall not in any way, directly or indirectly, be subject to the 

recognized grievance procedure. 

While Management may not be required to bargain on these matters, it is required 

to bargain on the effects of these actions if they have an impact on wages, hours, or 

other terms and conditions of employment. 

In the exercise of the rights set forth in this Section the City has the right to make 

reasonable rules and regulations. 


During the life of this Agreement, Unit employees shall not engage in any work 

stoppages, strikes, slow-downs, or boycott picketing. No lock-outs shall be made 

by the City. 


collectively, violates the provisions of this section, the Unit shall make a good faith 

effort to stop such violations of this section. 


6.1 Boot Allowance 

Field employees required to wear work boots shall be allowed an annual 

reimbursement of One Hundred Seventy-Five ($175) Dollars per year 

towards the purchase of approved safety boots/shoes. Payment shall be 

made once annually. Once purchased, the approved safety boots/shoes must 

be worn while on the job. Boots/shoes may be worn during regular work 

hours only (including to and from work). 

Sanitation employees shall also be eligible to be reimbursed up to $40 one 

time annually for the resoling of approved safety boots/shoes. All 

employees other than sanitation employees shall be eligible to be 

reimbursed up to $30 per year for one (1) resoling of their approved safety 

boots/shoes. 

6.2 Tool Allowance 

The City shall provide Vehicle Mechanics with a Nine Hundred Dollars 

($900.00) per year tool allowance. Should the City provide Mechanics with 

City purchased tools, the tool allowance shall cease. 


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6.3 Tool Insurance 

The City shall continue to provide tool insurance for Unit personnel 

employed at the Municipal Service Center for the term of this Agreement. 

6.4 Mileage 

The City shall maintain in effect the IRS rate for mileage reimbursement. 

6.5 Certification 

City to pay all fees, licenses for certification and training mandated as a 

requirement by any governmental agency other than professional licenses. 

6.6 Certificate Pay 

Individuals required to and possessing a Pesticide Advisor Certification 

shall receive payment of Two Hundred and Fifty ($250) Dollars per year. 

Such payment shall be made prior to June 30 th of each year. Payment is 

made for the prior years certification and will be prorated for individuals 

obtaining or possessing the certification for a portion of the previous year. 

6.7 IRS-125 Program 

The City shall maintain in effect the IRS-125 program including, at least, 

the dependent-care and non-reimbursed medical account provisions. 

6.8 Immunizations 

The Equipment Mechanic and Vehicle Maintenance Supervisor may receive 

City paid immunizations for blood-borne pathogens annually. 

6.9 Health Saving Account 


and will meet and confer with the unit regarding the potential benefit 


7.0 DEFINITION OF MID-MANAGEMENT 

The Definition of Mid-Management is as follows: 


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7.1 An employee having authority to transfer, suspend, lay-off, recall, promote, 

assign, reward or discipline other employees, or responsibility to direct 

them, or to adjust their grievances, or effectively recommend such actions, 

or any employee who exercises substantial control of part or all of the City 

budget, if in connection with any of the foregoing the exercise of such 

authority is not of a merely routine or clerical nature but requires the use of 

independent judgment. 

7.2 Any employee within a classification outside the definition of Mid- 

Management as determined by the Employee Relations Officer shall be 

placed into the Clerical and Technical Unit for bargaining purposes. 

7.3 Those employees in such classifications as of July 1, 1984, who are moved 

to another bargaining unit, shall continue to receive administrative leave and 

life insurance currently in effect for the Mid-Management Unit. 

8.0 FLEXIBLE/ALTERNATE WORK SCHEDULES 

The City acknowledges that there may be benefits both to the City and to the 

employees in alternative schedules. Employees may request that their Department 

Heads consider alternative scheduling of their work. 

9.0 ENACTMENT 

The Agreement shall become effective upon ratification by the City Council of the 

City of Watsonville and shall remain in full force and effect until June 30, 2010, or 

until a new agreement has been executed. 


Date: ___________ 

______________________________________ 

______________________________________ 

______________________________________ 

______________________________________ 


Date: ___________ 

_______________________________________ 



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APPENDIX A

APPENDIX A

APPENDIX A







OF THE CITY AND OPERATING ENGINEERS LOCAL 

UNION NO. 3 FOR EMPLOYEES IN THE PUBLIC 

WORKS UNIT FOR FISCAL YEAR 2009-2010 


Employee Relations Officer and Operating Engineers Local Union 

No. 3 for employees in the Public Works Unit, 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 




Reso No. (CM) 

Q:\COUNCIL\2009\052609\MOU Op Engineers.docx 

ri 5/21/2009 4:01:21 PM 

AJS ______ CJP ______ 

1



FOLLOWS: 


Municipal Employee Relations Officer and the Operating 

Engineers Local Union No. 3 for employees in the Public Works 

Unit, attached hereto marked Exhibit “A,” and incorporated herein 

by this reference, is hereby ratified for the fiscal year July 1, 2009, 

to June 30, 2010, or until a new agreement has been executed. 

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

Reso No. (CM) 

Q:\COUNCIL\2009\052609\MOU Op Engineers.docx 

ri 5/21/2009 4:01:21 PM 

2


BETWEEN 

OPERATING ENGINEERS 

LOCAL UNION NO. 3 

AND 


2009-2010


1.0 COMPENSATION ............................................................................................................ 2 

1.1 Salary ................................................................................................................................ 2 

1.2 Overtime ............................................................................................................................ 2 

1.3 On Call/Call Back Pay ...................................................................................................... 3 

1.4 Bilingual Pay ..................................................................................................................... 4 

1.5 Employee Retirement Contribution .................................................................................. 5 

1.6 Temporarily Working Out of Classification ..................................................................... 5 

1.7 Tanker Truck Differential ................................................................................................. 6 

1.8 Water Certification Pay ..................................................................................................... 6 

1.9 Street Sweeper Citation Differential ................................................................................. 7 

2.0 INSURANCE ..................................................................................................................... 7 

2.1 Health Insurance ............................................................................................................... 7 

2.2 Excess Disability Insurance .............................................................................................. 8 

2.3 State Disability Insurance ................................................................................................. 9 

2.4 Life Insurance ............................................................................................................... 9 

3.0 LEAVES ............................................................................................................................. 9 

3.1 Vacation Leave ................................................................................................................. 9 

3.2 Maximum Vacation Accrual ............................................................................................. 9 

3.3 Holidays .......................................................................................................................... 10 

3.4 Sick Leave ....................................................................................................................... 10 

3.5 Family Care and Medical Leave Policy .......................................................................... 11 

4.0 RETIREMENT ............................................................................................................... 12 

5.0 MANAGEMENT RIGHTS ............................................................................................ 12 

6.0 PEACEFUL PERFORMANCE ..................................................................................... 14 

7.0 AGENCY SHOP ............................................................................................................. 14 

8.0 UNION STEWARDS ...................................................................................................... 15 

9.0 MISCELLANEOUS ........................................................................................................ 15 

9.1 Tool Allowance ............................................................................................................... 15 

9.2 Tool Insurance ................................................................................................................. 15 

9.3 Tool Purchase .................................................................................................................. 15 

9.4 Certificates ...................................................................................................................... 15 

9.5 New Hires - Notification ................................................................................................. 15 

9.6 Boot Allowance ............................................................................................................... 16 

9.7 Passengers in City Vehicles ............................................................................................ 16 

9.8 Uniform Allowance ......................................................................................................... 16 

9.9 Mileage ............................................................................................................................ 16 

9.10 Work Location ............................................................................................................ 17 

9.11 Deferred Compensation .............................................................................................. 17 

9.12 Flexible/Alternative Schedules ................................................................................... 17 

9.13 Notice of Work Schedule Changes ............................................................................. 17 

9.14 Retirement Re-Openers ................................................................................................ 17 

10.0 ENACTMENT ................................................................................................................. 18 

OE3 2009-2010 MOU CC Draft 

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1:59 PM 

1


BETWEEN 

OPERATING ENGINEERS LOCAL UNION NO. 3 

AND 


2009-2010 

This Memorandum of Understanding sets forth the agreement between the 

representatives of Operating Engineers Local Union No. 3 and the representatives 

of the City of Watsonville on all matters contained herein for employees of the City 

of Watsonville in the Public Works Unit. The parties hereto agree to jointly 

recommend to the City Council of the City of Watsonville that one or more 

resolutions be adopted effectuating the following changes in the salaries, benefits, 

and other terms and conditions of employment for said employees in the Public 

Works Unit. 

This Agreement shall become effective August 1, 2009, and shall terminate on June 

30, 2010. 

All benefits currently in effect and not modified by this Agreement or Appendix A 

shall remain in effect for the term of this Agreement, except as provided herein. 


1.1 Salary 

1.1.1 Effective retroactive to the first full payroll period on or after 

August 1, 2006 base salaries shall be increased by 3.8%. 

1.1.2 Effective the first full payroll period following Council 

ratification and in exchange for the changes proposed in 

section 1.5, base salaries shall increase by 3%. 

1.1.3 Effective the first full payroll period on or after August 1, 

2007 base salaries shall be increased by 3.5%. 

1.1.4 Effective the first full pay period on or after August 1, 2008, 

base salaries shall be increased by 3.0%. 

1.2 Overtime 


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2

1.2.1 Time and one-half will be paid for all overtime over the 

normal 40-hour work period. Paid time off shall be counted 

as time worked. Employees working in the City’s sanitation, 

water or wastewater operation are exempt from this schedule 

and will work pursuant to the paragraph 1.2.2. 

1.2.2 Employees of the City’s sanitation, water or wastewater 

operation will be paid time and one-half for all overtime over 

the normal 40-hour work period. Any employee of the 

sanitation, water or wastewater operation working on a 

holiday will be paid straight time for the day plus time and 

one-half for the hours worked on the holiday. 

1.2.3 In the event that an employee has worked in excess of eight 

(8) hours on any day(s) of the week up to Friday, the 

employee may take off the amount of hours which he has 

worked in excess of forty (40) hours in that work week. This 

option is available on Fridays and shall occur only with the 

permission of the supervisor. If the supervisor does not allow 

the option or if the employee elects not to take time off, the 

employee shall receive overtime compensation. 

1.2.4 Employees may maintain a compensatory bank of up to 40 

hours. Upon utilization of compensatory time and reducing 

accruals below the 40 hour limit, employees may earn 

additional compensatory time off. 

Use of compensatory time off shall be subject to the approval 

of the Department Head and may not interfere with the 

efficient operation of any department. 

1.2.5 Any employee who works six (6) straight days without two 

days off will receive one and one half (1 1/2) times their 

regular rate for hours worked on the seventh day and 

thereafter until the employee has two days off. 

1.3 On Call/Call Back Pay 

Covered employees who are required to be on call shall be 

compensated at the rate of Two Hundred and Ten Dollars ($210.00) 

per week in addition to their regular pay. Covered employees who 

are called back to work shall receive a minimum of three (3) hours 

overtime compensation except when such recall is an extension of 

their regular workday, either before or after the assigned work 

period. The three-hour minimum covers all calls completed within 

the three hour period. 


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3

Daily On-Call: Employees shall receive $30/day for daily on-call 

which shall be assigned when it is anticipated that special 

circumstances may occur that would require work during periods 

other than the normal work hours. Such special circumstances 

include forecasts of heavy rains and/or flooding, earthquake and 

other natural disasters, and special events. Notice regarding the need 

for on-call status would be given to employees as soon as such need 

is known but no later than 8 hours prior to the start of the on-call 

status period. On-Call will first be assigned to volunteers in the 

classification deemed necessary for the on-call work. If there are 

insufficient volunteers, daily on-call will be assigned in inverse order 

of seniority. This provision sunsets July 31, 2006 and is subject to 

negotiations. 


1.4.1 Level I: Employees proficient in the Spanish Language shall 

receive premium pay equal to five (5%) percent of base 

salary, as of November 1, 2006, in addition to their regular 

salary if: 

(a) 

(b) 

Employee passes the City’s bilingual competency test as 

administered by the personnel department on an annual basis 

to maintain the premium pay. The City Manager may waive 

the annual testing requirement for individuals upon 

recommendation of the department head. Annual basis refers 

to the fiscal year; and 

The employee is required to serve as an oral interpreter and 

provide basic written translations on a regular and on-going 

basis, as certified by the Department Head 

For employees hired after November 1, 2006, the City shall pay a 

stipend of $250/month for employees eligible for Level I bi-lingual 

pay. Employees who receive the 5% may irrevocably opt into the 

$250/month stipend. 


In addition to the Level I stipend the City will designate a limited 

number of staff as Level II Bilingual Translators. Such Level II 

Bilingual Translators shall perform written translations that are 

viewed by a large audience of city residents (i.e. City mailers, City 

Council minutes, inserts in City utility bills, etc.) 

(a) 



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4

(b) 

To evidence competency as a Level II Translator, employees 

must pass a skills-based test administered by the City to 

demonstrate competency in written translation. 

1.4.3 Testing: 

The City will provide a Level I bi-lingual test to interested 

and eligible members of this unit, within 60 days of the 

ratification and approval of this contract by City Council. 

1.5 Employee Retirement Contribution 

1.5.1 For the term of this Agreement, the City agrees to contribute 

to the Public Employees Retirement System (PERS) on 

behalf of each employee, seven (7%) percent of the 

employee’s compensation upon which retirement 

contributions are calculated (hereinafter “7%”). Effective the 

first pay period following Council approval the City 

contribution shall be reduced to four (4%) percent of the 

employee’s compensation. Said contributions shall be 

considered deferred compensation, not salary, and shall be 

credited to the employee’s retirement account. Any future 

income tax obligations resulting from salary, and shall be 

credited to the employee’s retirement account. Any future 

income tax obligation resulting from these contributions shall 

be the exclusive responsibility of the employee. In the event 

the Internal Revenue Service shall change its current position 

and determine that such contributions constitute salary, not 

deferred compensation, any resulting tax obligations shall be 

the exclusive responsibility of the employee and the City 

shall not be held responsible therefore. 

For the purposes of salary comparison, the employee 

retirement contribution paid by the City shall be considered 

part of base pay. 


The City shall maintain the IRS Sec. 414(h)(2) provision 

allowing employees to make employee retirement 

contributions with pretax (tax deferred) dollars. 

1.6 Temporarily Working Out of Classification 

In every City department subordinate employees are expected to act 

as relief for their superiors. Employees also may be assigned to a 

higher classification which is vacant due to the absence or 


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5

esignation of another employee. This provides training 

opportunities to help qualify employees to successfully compete for 

future promotion. Acting as relief for a lengthy period, however, 

should be recognized by added compensation since a higher level of 

continuing responsibility is involved. 

Procedure. With prior management approval whenever a 

subordinate employee acts as relief and must perform substantially 

higher duties for a superior for more than fifteen (15) cumulative 

eight-hour working days in a fiscal year, an appropriate salary 

adjustment shall be made pursuant to these rules. Individuals 

working out of class as landfill operators will receive working out of 

class pay beginning on the 6 th cumulative day working at the landfill 

in any fiscal year. 

The salary adjustment shall become effective on the 16th day of the 

temporary assignment and shall not be retroactive. Upon returning 

to the responsibility of his/her normal position, salary shall be 

returned to the normal level. 

Compensation for work out of classification will be the lowest step 

in the higher salary range with pay which provides a minimum 

increase of five (5%) percent above the normal rate of pay for the 

employee. 

1.7 Tanker Truck Differential 

Integrated Waste Workers will receive 5% in addition to their base 

pay for any shift in which all or part of the shift is spent driving the 

tanker truck. 

1.8 Water Certification Pay 

Any incumbent who obtains a certification in a grade above that 

required for the incumbent’s certification level will receive 

$50/month per additional certification level up to a maximum of 

$100/month. For purposes of these higher than required certification 

levels discussed in this paragraph, the following job classifications 

will be added to those who are eligible to receive this additional 

certification pay: 

Utility Workers 

Wastewater Operator I/II 

Wastewater Operator III 

Water Quality Chemist 

Water Quality Laboratory Technician 

Water Operator I 


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6

Water Operator II 

Senior Water Operator 

1.9 Street Sweeper Citation Differential 

2.0 INSURANCE 

Employees assigned to operate the Street Sweeper who are trained 

and certified to issue citations shall receive a differential of five 

percent (5%). 


2.1.1 The City shall retain in effect current health insurance 

coverages for all Unit employees. The City shall contribute 

the following monthly amounts towards health insurance 

coverages: 

October 1, 2006 $ 776.15 

July 1, 2007 $ 821.15 

For full time employees in the following classifications the 

City shall contribute an additional $26 dollars per month 

towards health insurance coverages for Solid Waste Aides 

2.1.2 Should the City contributions and employee 

contributions/plan changes fail to fund the Self-Funded 

Health Plan without a deficit for fiscal year 08/09, the parties 

agree to re-open this section of the agreement to discuss 

additional City and employee contributions/plan changes 

and/ or a change from the current self-funded health plan. 

Such a re-opener shall occur upon a recommendation of the 

City Employee Health Committee (CEHC) for either plan 

changes or additional premium contributions in fiscal year 

08/09, but no later than May 30, 2008. If contribution 

increases are necessary for the 08/09 plan year, the City and 

Employees contribution shall be shared equally, provided 

that increased City contributions do not exceed $45/month 

per employee. 

2.1.3 Regular part-time employees will be fully covered at the 

employee only level at the City's expense. The employee 

shall have the option of covering additional dependents at 

their own expense. This shall be determined by utilizing the 

three-tier rate which the City has established for the COBRA 

and other purposes (less any surcharges). To cover one (1) 

dependent, the employee will pay the difference between the 


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7

employee only rate and the employee plus one rate. To cover 

the family, the employee will pay the difference between the 

employee only rate and the full family rate under the three 

tiers. 

The decision to cover family members shall be made during a 

one time election when this provision becomes effective. 

Thereafter, employees may only add or delete family 

members in accordance with plan rules. 

Regular part-time employees employed on or before 

December 1, 1998, in the thirty (30) hour category, shall 

continue to receive full health insurance benefits. 

2.1.4 For any member of the Unit who expires all leave due to 

illness or injury, which is not a Workers Compensation 

claim, the City shall maintain the health insurance coverage 

and pay the premium on behalf of the member for an 

additional thirty (30) days. 

2.1.5 The Unit agrees to participate jointly with the City and other 

employee groups in review of insurance coverages during the 

term of this agreement. Upon health insurance committee 

recommendations to change or modify insurance coverages; 

the parties agree to reopen negotiations on this issue only. 

The City will consider adding the Operating Engineers 

Health Plan as an option; if alternatives to the existing selfinsured 

plan are considered. 



receive the maximum weekly Workers Compensation benefit 

as determined by State law. 

2.2.2 In addition to this amount, the employee may receive an 

appropriate amount of accrued sick leave pay to provide for 

the difference between the established Workers 

Compensation amount and the employee’s regular gross pay. 

2.2.3 The employee may also receive Fifty Dollars ($50.00) per 

week extra disability coverage in lieu of accrued sick leave 

pay. 

2.2.4 In no event shall the combination of Workers Compensation 

benefits exceed the regular gross pay of the affected 

employee. 


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2.2.5 It shall be the responsibility of the employee to notify the 

Finance Department within three (3) days of the injury or 

illness if the extra coverage option described in Section 2.2.3 

above is to be implemented. 

2.2.6 Absent notification to the contrary, the Finance Department 

will automatically apply accrued sick leave with the 

established Workers Compensation amount to equal the 

employee’s gross pay. 

2.2.7 The Fifty Dollars ($50) per week excess coverage shall not 

apply until the seventh (7th) calendar day following the 

injury or illness event. 

2.3 State Disability Insurance 

Unit members participate in the State Disability Insurance Program 

at their own expense. Unit members shall not be required to exhaust 

paid leave prior to receiving State Disability Insurance payments. 

State Disability Insurance payments shall be integrated with existing 

paid leave, however, so that employee’s net pay does not increase 

when receiving SDI. 


3.0 LEAVES 

The City shall continue in effect the Fifty Thousand Dollars 

($50,000) per employee life insurance policy for the term of this 

Agreement. 


Each employee shall accrue vacation as specified below: 




3.2 Maximum Vacation Accrual 

Maximum vacation accrual shall be no more than two (2) times an 

employees annual vacation amount. 

Employees requesting and denied vacation due to the needs of the 

City and therefore having vacation accrual amounts exceeding the 


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9

maximum shall have a sixty (60) day period from the time the 

vacation request was denied to reschedule their vacation. 

3.3 Holidays 


January 1 (New Year’s Day) 

Third Monday in January (Martin Luther King’s Birthday) 

Lincoln’s Birthday (Floating holiday) 

Third Monday in February (Washington’s Birthday) 


July Fourth 











There will be one (1) floating vacation day credited to each 

employee on Lincoln’s Birthday, which may be taken pursuant to the 

City’s leave regulations. 

3.3.1 Waste Water employees working continuous shifts shall 

receive premium compensation on the actual holiday; not the 

City observed holiday. 

3.3.2 When a holiday falls on a Saturday or Sunday and is 

observed on the day before or day after, those employees 

working an alternative schedule, which includes the holiday 

and the observed day, will receive one and one-half (1 1/2) 

times their regular rate of pay for the hours worked on the 

observed day and will receive regular pay on the holiday. 


3.4.1 Each employee shall accrue sick leave in the amount of one 

and one-quarter (1-1/4) days per month of service (10 hours). 

Sick leave is payable only in the cases of bona fide illness or 

injury. 


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10

3.4.2 The maximum accumulation of unused sick leave is 125 days 

(1,000 hours). Sick leave accumulated in any calendar year 

in excess of 125 days (1,000 hours) shall be paid at the rate 

of 50% of such excess. The balance of such unused sick 

leave is lost and the sick leave accrual is reduced to 125 days 

(1,000 hours) at January 1 of each year. 



3.4.4 In the event of an illness in the immediate family, an 

employee shall be granted accrued sick leave not to exceed 

five (5) days by the department head. For the purposes of 

this section, immediate family shall include parents, brothers, 

sisters, spouses, children and grandparents. Where unusually 

close tie exist, the department may determine other 

relationships to be included in the definition on a case-bycase 

basis. 

3.4.5 In case of death in the immediate family an employee may be 

granted accrued sick leave not to exceed three (3) days. In 

cases involving out-of-state funerals, an additional two (2) 

days may be granted. Additional time off for this purpose 

must be vacation, C.T.O., or unpaid leave. Bereavement 

leave must be approved by the Department head. 

3.5 Family Care and Medical Leave Policy 

3.5.1 In accordance with the Federal Family and Medical Leave 

Act (FMLA) and the California Family Rights Act (CFRA), 

the City of Watsonville (City) will provide unpaid family and 

medical care leave for eligible employees for up to 12 weeks 

per 12-month period for the following reasons only: 

a. The birth of a child or to care for a newborn of an 

employee; 

b. The placement of a child with an employee in 

connection with the adoption or foster care of a child; 

c. Leave to care for a child, parent or spouse who has a 

serious health condition; or 

d. Leave because of a serious health condition that 

makes the employee unable to perform the functions 

of his/her position. 


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4.0 RETIREMENT 


a. Has been employed for at least 12 months; and 

b. Has been employed for at least 1,250 hours 

during the 12-month period immediately preceding 

the commencement of the leave, 

3.5.3 If an employee requests leave for any reason permitted under 

this policy, he/she must exhaust all accrued leaves (except 

sick leave) in connection with the leave. The exhaustion of 

accrued leave will run concurrently with the leave under this 

policy. 


condition, in addition to exhausting accrued leave, the 

employee must also exhaust accrued sick leave. Workers 

compensation disability leave will run concurrently with 

family leave. 


information, refer to the City’s Administrative Rule on this 

subject. 

The City shall provide the 2% at 55 retirement plan for Unit employees. 

The City shall continue in effect the current options including PERS Section 

20862.8 - Credit for Unused Sick Leave. 


All City rights, under state law and charter, and all City rights which existed 

prior to the recognition of the Public Works Unit shall remain vested with 

the City, unless expressly abridged by the M.O.U. These rights include, but 

are not limited to: 

-- the exclusive right to determine the mission of its constituent 

departments, commissions, boards; 

-- set standards and levels of service; 

-- determine the procedures and standards of selection for employment 

and promotions; 

-- direct its employees; 


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-- establish and enforce dress and grooming standards; 

-- determine the methods and means to relieve its employees from duty 

because of lack of work or other lawful reasons; 

-- maintain the efficiency of governmental operations; 

-- determine the methods, means and numbers and kinds of personnel 

by which government operations are to be conducted; 

-- determine the content and intent of job classifications; 

-- determine methods of financing; 

-- determine style and/or types of City-issued wearing apparel, 

equipment or technology to be used; 

-- determine and/or change the facilities, methods, technology, means, 

organizational structure and size and composition of the work force 

and allocate and assign work by which the City operations are to be 

conducted; 

-- determine and change the number of locations, relocations and types 

of operations, processes and materials to be used in carrying out all 

City functions including, but not limited to, the right to contract for 

or subcontract any work or operations of the City; 

-- to assign work to and schedule employees in accordance with 

requirements as determined by the City and to establish and change 

work schedules and assignments upon reasonable notice; 

-- establish and modify productivity and performance programs and 

standards; 

-- discharge, suspend, demote, reprimand, withhold salary increases 

and benefits, or otherwise discipline employees in accordance with 

applicable law; 

-- establish employee performance standards including, but not limited 

to, quality and quantity standards, and to require compliance 

therewith; 

-- take all necessary actions to carry out its mission in emergencies; 

and 


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13

-- exercise complete control and discretion over its organization and 

the technology of performing its work. 

The exercise by the City through its Council and management 

representatives of its rights hereunder shall not in any way, directly or 

indirectly, be subject to the recognized grievance procedure. 

The City Manager and Department Heads have and will continue to retain 

exclusive decision making authority on matters not officially and expressly 

modified by specific provisions of this M.O.U. 

In the exercise of the rights set forth in Section 5.0, the City has the right to 

make reasonable rules and regulations. 


During the life of this Agreement, Unit employees shall not engage in any 

work stoppages, strikes, slow downs, or boycott picketing. No lock-out 

shall be made by the City. 


collectively, violates the provisions of this section, the Union shall make a 

good faith effort to stop such violations of this section. 

7.0 AGENCY SHOP 

Represented employees have voted to provide for an agency shop provision. 

Union employees shall either join the Union or pay a service fee reflecting 

the cost of representation. 

The City and Union agree: 

(1) The Union will indemnify and hold the City harmless from any and 

all liability arising out of the implementation and administration of 

the Agency Shop provision, should it be implemented. 

(2) The Union shall be responsible for enforcing the provisions of this 

section using appropriate civil procedures. The City is not 

responsible for disciplining employees for violation of this section. 

The Union agrees to adhere to all statutory and judicial requirements, and to 

maintain an appropriate complaint procedure. The Union shall also 

establish alternative procedures for employees who are members of bona 

fide religion, body, or sect which has historically held conscientious 

objections to joining or financially support any public employee 

organization, to make alternative charitable contributions in accordance with 

Government Code Section 3502.5. 


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14

8.0 UNION STEWARDS 

Operating Engineers may designate up to two (2) employees as Union 

Stewards. The Union will notify the City Personnel Officer of any changes 

to the stewards. Stewards are responsible for assisting members in resolving 

disputes regarding disciplinary matters and interpretations of the MOU, 

providing representation during disciplinary matters upon request, 

maintaining bulletin boards approved for Union notices and notifying 

members of Union meetings. At no time shall both stewards be released to 

handle the same matter. Stewards shall attend meetings as authorized by the 

City that require Union attendance. An additional member of the bargaining 

unit will be designated to participate in the Health Care Committee, and 

shall attend all meetings of that Committee. 


9.1 Tool Allowance 

The City shall provide Vehicle Mechanics with a Nine Hundred 

Dollars ($900.00) per year tool allowance. Should the City provide 

Mechanics with City purchased tools, the tool allowance shall cease. 

9.2 Tool Insurance 

The City shall continue to provide tool insurance for Unit personnel 

employed at the Municipal Service Center for the term of this 

Agreement. 

9.3 Tool Purchase 

The City shall allow Vehicle mechanics to purchase required tools 

through the City at City prices as long as the relationship with Snap- 

On Tools industrial accounts is continued. 

9.4 Certificates 

Water Treatment Personnel and Wastewater Treatment Personnel 

who are required to possess specified certificates by State or Federal 

requirements will be provided the required training at City expense. 

9.5 New Hires - Notification 

The City will provide notification to a designated Union steward 

when new employees are hired into the Unit. 


5/21/2009 1:59 PM 

1:59 PM 

15


9.6.1 Field employees required to wear work boots shall be 

allowed an annual reimbursement of One Hundred Twenty- 

Five Dollars ($125.00) per fiscal year towards the purchase 

of approved safety boots/shoes. Payment shall be made on a 

reimbursement basis upon proof of purchase. Once 

purchased, the approved safety boots/shoes must be worn 

while on the job. Boots/shoes may be worn during regular 

work hours only (including to and from work). 

9.6.2 In those departments/divisions where steal toed work boots 

are required, the annual reimbursement amount shall be One 

Hundred Fifty Dollars ($150.00) per fiscal year towards the 

purchase of the approved steel toed safety boots/shoes. 

9.6.3 Sanitation employees only shall also be eligible to be 

reimbursed up to $40 one time annually for the resoling of 

approved safety boots/shoes. 

9.6.4 All employees other than sanitation employees shall be 

eligible to be reimbursed up to $30 per year for one (1) 

resoling of their approved safety boots/shoes. 

9.7 Passengers in City Vehicles 

City Vehicles are not intended to provide transportation except for 

official City purposes. Transporting of passengers other than for 

City business is restricted to emergency situations. City vehicles as 

used in this section shall be interpreted as including any City 

equipment. This is not intended to prevent passengers in the 

authorized use of passenger vehicles which are permanently assigned 

on a 24-hour basis. 

9.8 Uniform Allowance 

The uniform allowance for covered personnel shall be Four hundred 

and seventy five ($475) per year. Police Service Specialists (PSS) 

may utilize the service that provides and cleans their uniforms. Two 

Police Captains and two employees from PSS and Parking 

Enforcement shall form a committee to establish appropriate summer 

uniforms. 

9.9 Mileage 

The City shall utilize the IRS rate for mileage reimbursement. 


5/21/2009 1:59 PM 

1:59 PM 

16

9.10 Work Location 

When required to report for work at locations other than the MSC, 

employees will be provided access to appropriate alternate changing, 

storage, drinking and toilet facilities. 


Members of this Unit may participate in the Deferred Compensation 

Plan currently in effect. 

9.12 Flexible/Alternative Schedules 

The City acknowledges that there may be benefits both to the City 

and to the employees in alternative schedules. Employees may 

request that their Department Heads consider alternative scheduling 

of their work. Examples of alternate schedules include flex time, job 

sharing, voluntary reduced work hours, and alternate work 

schedules. 

Employees on flexible/alternate schedules shall continue to accrue 

time on the standard 8-hour day. Accrued leaves shall be charged 

based on the number of hours missed due to their flexible schedule. 

If necessary for implementation of flexible/alternate schedules, an 

employee(s) may have a special FLSA seven (7) day work cycle 

established. Once established, the work schedule shall not be 

changed on a frequent or routine basis. 

9.13 Notice of Work Schedule Changes 

Except in the event of an emergency, all employees shall receive two 

weeks advance notice of any change in their regular schedule. 

9.14 Retirement Re-Openers 

9.14.1 In the event that the PERS law is amended to provide the 3% 

at 60 Retirement Plan for Miscellaneous employees, at the 

request of the Union the City agrees to reopen this agreement 

as to this issue only. Should all PERS Miscellaneous 

employees agree to implement this retirement benefit, 

employees shall pay all increased costs, as determined by the 

PERS actuarial and any increased member contributions, 

from future salary increases. 

9.14.2 The parties agree to meet and confer in Spring 2008 to 

discuss amending the City’s contract with PERS to provide 


5/21/2009 1:59 PM 

1:59 PM 

17

the single highest year benefit. The provision of this benefit 

must be at no cost to the City. 


10.0 ENACTMENT 

The City will work to establish a retiree Health Savings Account and 

will meet and confer with the unit regarding the potential benefit 


This Agreement shall become effective upon ratification by the City Council 

of the City of Watsonville and shall remain in full force and effect until June 

30, 2010 or until a new Agreement has been executed. The parties agree to 

begin negotiations on a successor agreement no later than May 15, 2010. 

OPERATING ENGINEERS LOCAL UNION NO. 3 

_________________________________________ 

Date: ___________ 

_________________________________________ 

_________________________________________ 

_________________________________________ 

_________________________________________ 

_________________________________________ 


_________________________________________ 


Date: ___________ 


5/21/2009 1:59 PM 

1:59 PM 

18

APPENDIX A

APPENDIX A

APPENDIX A



(CM) 


CITY OF WATSONVILLE RATIFYING FIRST 

AMENDMENT TO THE MEMORANDUM OF 

UNDERSTANDING BETWEEN THE MUNICIPAL 

EMPLOYEE RELATIONS OFFICER OF THE CITY 

AND POLICE OFFICERS ASSOCIATION UNIT FOR 

FISCAL YEARS 2009-2012 

Amends Resolution No. 82-07 (CM) 


Employee Relations Officer and the Police Officers Association 

Unit on or about April 24, 2007, entered into a Memorandum of 

Understanding for the fiscal years 2007-2010 subject to Council 

approval; and 

WHEREAS, the Council adopted Resolution No. 82-07 (CM) 

on April 24, 2007, ratifying said Memorandum of Understanding for 

the fiscal years 2007-2010 between the Municipal Employee 

Relations Officer of the City and the Police Officers Association 

Unit; and 

Reso No. (CM) 

Q:\COUNCIL\2009\052609\MOU Police.docx 

ri 5/21/2009 4:15:33 PM 

1 

AJS ______ CJP ______


Employee Relations Officer and the Police Officers Association 

Unit, in accordance with provisions of the Milias-Myers-Brown Act 


Watsonville Resolution No. 56-08 (CM), and City of Watsonville 

Administrative Rule V.1.1., met and conferred in good faith and 

wish to amend such Memorandum of Understanding; and 

WHEREAS, the parties have agreed to amend said 

Memorandum of Understanding to extend the contract term to 

June 30, 2012, and to amend Section 1.0—General Provisions, 

Section 9.0—Hours of Work and Shift Schedules, Section 22.0— 

Salary and Section 10.0—Medical and Insurance Coverages, as 

set forth in the First Amendment, attached hereto and incorporated 

herein as Exhibit “A”; and 


reviewing the First Amendment to Memorandum of Understanding 

Reso No. (CM) 


ri 5/21/2009 4:15:33 PM 

2

hereby determines to ratify said Amendment to the Memorandum 

of Understanding. 



FOLLOWS: 

That First Amendment to the Memorandum of Understanding 

between the Municipal Employee Relations Officer and the Police 

Officers Association Unit, attached hereto marked Exhibit "A," and 

incorporated herein by this reference, is hereby ratified for fiscal 

year July 1, 2009 to June 30, 2010; July 1, 2010 to June 30, 2011; 

and July 1, 2011 to June 30, 2012; or until a new agreement has 

been executed. 

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

Reso No. (CM) 


ri 5/21/2009 4:15:33 PM 

3

FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING 

BETWEEN THE CITY OF WATSONVILLE 

AND THE WATSONVILLE POLICE OFFICERS ASSOCIATION 

THIS FIRST AMENDMENT TO AGREEMENT TO MEMORANDUM OF 

UNDERSTANDING is made and entered into this 26 th day of May , 2009 by 

and between the CITY OF WATSONVILLE, a municipal corporation, hereafter referred 

to as “City”, and the WATSONVILLE POLICE OFFICERS ASSOCIATION, hereafter 

referred to as the “Association” affiliated with the California Organization of Police and 

Sheriffs (hereinafter the "Association") for and on behalf of Police Officers. 

RECITALS 

WHEREAS, on April 24, 2007, the City Council adopted Resolution No. 82- 

07(CM), approving the 2007-2010 Memorandum of Understanding between the City and 

the Association: and 

WHEREAS, the City and the Association wish to amend such MOU to extend 

the contract term and revise the medical insurance coverages and salary sections; and 

WHEREAS, The City and the Association wish amend the investigation schedule 

to reflect current practice and restate the terms and conditions that apply to that section; 

and 

WHEREAS, this First Amendment to the MOU between the City and the 

Association is in the best interest of the City of Watsonville and its Association 

employees. 

NOW THEREFORE, the City and the Association agree that the 2007-2010 

MOU shall be amended as follows: 

1.0 GENERAL PROVISIONS 

1.1 Effective April 24, 2007, and continuing through and including June 30, 

2012, this Memorandum contains all items agreed upon by and between 

the City and the Association. 

1.4 The Association may, at its sole discretion, opt out of the remaining one 

year term of the contract and shall provide written notice of intent to opt 

out of the term of the contract to the City no later than March 30, 2011. 

9.0 HOURS OF WORK AND SHIFT SCHEDULES 

9.4 Investigations Schedule 

5/21/2009 2:16 PM 

1 

Exhibit "A" 

1 of 4

22.0 SALARY 

All sworn officers assigned to the Investigations Division are scheduled 

to work an 80-hour work period within a two-week pay period. 

Detectives shall be on a 4/10 schedule. Lunch breaks will be coordinated 

so that they are taken while the officer is at their workstations or in 

conjunction with scheduled appointments or investigations. Similar to 

patrol officers, the lunch period will be termed a "working lunch" and 

such a period shall not significantly detract from the ten-hour workday. 

The parties may reopen this provision section of the MOU in the event 

the number of officers from this bargaining unit assigned to 

Investigations Division reaches six. 

The entire Investigations Division staff will work Tuesdays-Thursdays. 

Half of the staff will work on Mondays, and the other half on Fridays. 

There shall be a supervisor scheduled all five days. 

This schedule shall not result in any additional costs to the City. If a 

Detective is called to court on his/her day off, the Detective shall take a 

different day off instead of requesting overtime for the court appearance. 

That “different day off” will not be taken on a day that impacts staffing. 

The Investigations Division shall continue to be off on City Holidays. 

If a holiday falls on a scheduled day off, the employee will take a 

“different day off.” A “different day off” shall not be taken on a day 

that impacts staffing levels. 

Investigations personnel will work cooperatively with each other to 

provide adequate coverage in the case of extended absences due to 

schools, vacations, and long-term illness or injury. 

This 4/10 schedule is hereby approved on a temporary basis. The Chief 

of Police, upon consultation with the Association, may re-instate a 

different schedule at his discretion. 

22.5 The parties agree that the two and one half percent (2.5%) negotiated 

salaries that were to go into effect on July 1, 2009 shall be deferred until 

effective the first full pay period including July 1, 2010. 


salaries that were to go into effect on January 1, 2010 shall be deferred 

until effective the first full pay period including January 1, 2011. 

5/21/2009 2:16 PM 

2 

Exhibit "A" 

2 of 4

10.0 MEDICAL AND INSURANCE COVERAGES 

10.1 The City shall retain in effect current health insurance coverages for all 

Unit employees. The City shall contribute the following monthly 


July 1, 2009 $833.15 

Should the City contribute more towards the monthly medical premium 

on behalf of the Fire or Management bargaining units during the term of 

this MOU, the same amount shall be contributed for this bargaining unit. 

10.2 Any increased medical costs of the employee share occurring during the 

fiscal year beginning July 1, 2009 of this agreement shall be paid by the 

City. 

10.3 The City agrees to pay a maximum of $50/month towards any increased 

medical costs of the employee’s share occurring during the fiscal year 

beginning July 1, 2010. Any additional increases beyond $50/month 

shall be shared equally (50/50) by employees and City. 

10.4 Any increased medical costs occurring during the balance of this 

agreement shall be shared equally by the employees and the City, with 

the maximum monthly increase for each party to be no more than 

$45/month per fiscal year (in additional premiums or plan changes) 

beginning July 1, 2011. If additional funding is needed to maintain the 

solvency of the self-funded health plan, in any fiscal year of this 

agreement beginning July 1, 2009, the parties agree to re-open this 


changes and/or a change from the self-funded health plan. 

10.5 The Unit agrees to participate jointly with the City and other employee 

groups in review of insurance coverages during the term of this 

agreement. Upon health insurance committee recommendations to 

change or modify insurance coverages; the parties agree to reopen 

negotiations on this issue only. Should changes occur due to insurance 

changes result in City cost below those set forth above, the intent of the 

parties is that the savings shall accrue to the employees. 

10.6 The City shall maintain in effect life coverage for Unit employees of 

Fifty Thousand Dollars ($50,000.00) for the insured and Five Hundred 

Dollars ($500.00) for dependents. The City will attempt to amend its 

policy to allow employees to purchase, at his/her option, additional 

coverage at the City's rate. 

5/21/2009 2:16 PM 

3 

Exhibit "A" 

3 of 4

All other terms and conditions of the 2007-2010 MOU, shall remain in full force and 

effect. 

This amendment shall become effective the first full payroll period following union 

ratification and Council adoption. 

IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to 

MOU the day and year first hereinabove written. 

WATSONVILLE POLICE OFFICERS 

ASSOCIATION 

Date: _____________________ 

Date: _____________________ 

Date: _____________________ 

_____________________ 

_____________________ 

_____________________ 


Date:______________________ 

_____________________ 


5/21/2009 2:16 PM 

4 

Exhibit "A" 

4 of 4



(CM) 



TO THE MEMORANDUM OF UNDERSTANDING FOR 

FISCAL YEAR 2009-2012 BETWEEN THE 

MUNICIPAL EMPLOYEE RELATIONS OFFICER OF 

THE CITY AND THE WATSONVILLE POLICE 

OFFICERS ASSOCIATION UNIT 


Employee Relations Officer and the Watsonville Police Officers 

Association Unit on or about May 26, 2009, entered into a 

Memorandum of Understanding for the fiscal years 2009-2012 

subject to Council approval; and 

WHEREAS, the Council adopted Resolution No. _____ (CM) 

on May 26, 2009, ratifying said Memorandum of Understanding for 


Relations Officer of the City and the Watsonville Police Officers 

Association Unit; and 


Employee Relations Officer and the Watsonville Police Officers 

Reso No. (CM) 

Q:\COUNCIL\2009\052609\Police Side Letter.docx 

ri 5/21/2009 4:18:06 PM 

1 

AJS ______ CJP ______

Association Unit, in accordance with provisions of the Milias- 


and City of Watsonville Resolution No. 56-08 (CM), and City of 


faith and wish to implement a temporary alternative work schedule 

for personnel assigned to the Patrol Division of the Watsonville 

Police Department; and 






Letter to the Memorandum of Understanding. 



FOLLOWS: 

Reso No. (CM) 


ri 5/21/2009 4:18:06 PM 

2

That Side Letter to the Memorandum of Understanding 

between the Municipal Employee Relations Officer and the 

Watsonville Police Officers Association Unit, attached hereto 

marked Exhibit "A," and incorporated herein by this reference, is 

hereby approved. 

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

Reso No. (CM) 


ri 5/21/2009 4:18:06 PM 

3

Side Letter between City of Watsonville and Watsonville POA 

Whereas, a staffing shortage in the POA has resulted in unfilled patrol positions and 

mandatory overtime for the patrol division; and 

Whereas, the City and the POA desire to utilize an alternative 3/12 schedule for the patrol 

division on a temporary basis. 

Now therefore, the parties agree as follow: 

1. Section 9.3.1 of the MOU pertaining to 4/10 shifts for patrol will be replaced with 

the following 3/12 schedule for the term of this side letter. 

2. Beginning November 4, 2007, the patrol division shall work a 12 hour schedule, 

with 3 days of work one week and 4 days of work the following week as follows: 

Week S M T W TH F S 

1 12 12 12 12 12 12 12 

2 12 12 12 12 12 12 12 

3 12 12 12 12 12 12 12 

4 12 12 12 12 12 12 12 

The starting times for the morning shift will be 6 am. If the Chief of 

Police determines that for operational needs, that another starting time 

other than 6 am is appropriate, the Chief of Police will work with the 

Association to determine that starting time. 

3. The work period shall be 7 days, with 4 hours of overtime built into the schedule 

per pay period. 

4. Instead of Holiday days off, employees shall receive an amount equivalent to 104 

hours of straight time pay per calendar year of the agreement. This amount shall 

be paid in equal payments. Any amount of holiday pay owing for 2007 shall be 

paid to employees per the previous sentence above or credited to the employees as 

accrued leave time. 

5. Shifts will continue to be assigned pursuant to MOU section 9.3.3 

6. Training days will be suspended during the period of the 3/12 schedule. Training 

will be accomplished during regularly scheduled shifts. 

7. Rest time between scheduled shifts and court duty shall continue to be managed 

between the officer and their Lieutenant pursuant to current practice. 

3-12 POA Side Letter 2009-2012 Draft 

5/21/2009 12:38 PM 

Exhibit "A" 

1 of 2

8. The 3/12 schedule shall continue through the end of the first shift bid of 2010. 

Either party may cancel this side letter effective at the end of the first shift bid in 

July 2010 provided written notice is given to the other by May 15, 2010. If 

neither party terminates this side letter at the end of the first shift bid in 2010, 

either party may terminate this side letter at the end of each shift bid provided 

written notice is given to the other a month in advance. 

9. The POA shall work with Department Administration to establish appropriate 

bidding procedures for the new shifts. 

10. The Department shall work with the POA regarding a possible sleeping area. 

___________________________ 


_________________________ 

Watsonville POA 

Date:_______________________ 

Date:_____________________ 

3-12 POA Side Letter 2009-2012 Draft 

5/21/2009 12:38 PM 

Exhibit "A" 

2 of 2



(CM) 


CITY OF WATSONVILLE RATIFYING FIRST 

AMENDMENT TO THE MEMORANDUM OF 

UNDERSTANDING BETWEEN THE MUNICIPAL 

EMPLOYEE RELATIONS OFFICER OF THE CITY 

AND PUBLIC SAFETY MID-MANAGEMENT UNIT 

FOR FISCAL YEARS 2009-2012 

Amends Resolution No. 81-07 (CM) 


Employee Relations Officer and the Public Safety Mid- 

Management Unit on or about April 24, 2007, entered into a 



WHEREAS, the Council adopted Resolution No. 81-07 (CM) 

on April 24, 2007, ratifying said Memorandum of Understanding for 


Relations Officer of the City and the Public Safety Mid- 

Management Unit; and 

Reso No. (CM) 

Q:\COUNCIL\2009\052609\MOU PD Mid-Management.docx 

ri 5/21/2009 4:21:18 PM 

1 

AJS ______ CJP ______




Myers-Brown Act (Section 3500 et seq. of the Government Code), 

City of Watsonville Resolution No. 56-08 (CM), and City of 


faith and wish to amend such Memorandum of Understanding; and 

WHEREAS, the parties have agreed to amend said 

Memorandum of Understanding to extend the contract term to 

June 30, 2012, and to amend Section 1.0—General Provisions, 

Section 5.0—Hours of Work and Shift Schedules, Section 6.0— 

Medical and Life Insurance and Section 18.0—Salaries, as set 

forth in the First Amendment, attached hereto and incorporated 

herein as Exhibit “A”; and 


reviewing the First Amendment to Memorandum of Understanding 

Reso No. (CM) 


ri 5/21/2009 4:21:18 PM 

2

hereby determines to ratify said Amendment to the Memorandum 

of Understanding. 



FOLLOWS: 

That First Amendment to the Memorandum of Understanding 

between the Municipal Employee Relations Officer and the Public 

Safety Mid-Management Unit, attached hereto marked Exhibit "A," 

and incorporated herein by this reference, is hereby ratified for 

fiscal years July 1, 2009 to June 30, 2010; July 1, 2010 to June 

30, 2011; and July 1, 2011 to June 30, 2012; or until a new 

agreement has been executed. 

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

Reso No. (CM) 


ri 5/21/2009 4:21:18 PM 

3

FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING 

BETWEEN THE CITY OF WATSONVILLE 

AND THE PUBLIC SAFETY MID-MANAGEMENT UNIT 

THIS FIRST AMENDMENT TO AGREEMENT TO MEMORANDUM OF 

UNDERSTANDING is made and entered into this 26 th day of May , 2009 by 

and between the CITY OF WATSONVILLE, a municipal corporation, hereafter referred 

to as “City”, and the PUBLIC SAFETY MID-MANAGEMENT UNIT, hereafter referred 

to as the “Unit” representing police Sergeants and Lieutenants. 

RECITALS 

WHEREAS, on April 24, 2007, the City Council adopted Resolution No. 81-07 

(CM), approving the 2007-2010 Memorandum of Understanding between the City and 

the Unit: and 

WHEREAS, the City and the Unit wish to amend such MOU to extend the 

contract term and revise the medical insurance coverages and salary sections; and 

WHEREAS, The City and the Unit wish amend the investigation schedule to 

reflect current practice and restate the terms and conditions that apply to that section; and 

WHEREAS, this First Amendment to the MOU between the City and the Unit is 

in the best interest of the City of Watsonville and its Unit employees. 

NOW THEREFORE, the City and the Unit agree that the 2007-2010 MOU shall 

be amended as follows: 

1.0 GENERAL PROVISIONS 

1.1 Effective April 24, 2007, and continuing through and including June 30, 

2012, this Memorandum contains all items agreed upon by and between 

the City and the Association. 

1.4 The Unit may, at its sole discretion, opt out of the remaining one year 

term of the contract and shall provide written notice of intent to opt out 

of the term of the contract to the City no later than March 30, 2011. 

5.0 HOURS OF WORK AND SHIFT SCHEDULES 

5.4 Investigations Schedule 

All Sergeants assigned to the Investigations Division are scheduled to 

work an 80 hour work period within a two week pay period. The 

Investigations unit shall work a 4/10 schedule. Lunch breaks will be 

Exhibit "A" 

1 

1 of 4 

5/21/2009 2:12 PM

coordinated so that they are taken while the officer is at his work station 

or in conjunction with scheduled appointments or investigations. Like 

patrol officers, the lunch period will be termed a “working lunch” and 

such a period shall not significantly detract from the eight-hour work 

day. In the event that the number of officers in the Investigations 

Division increases to six (6) either party may reopen this section to 

discuss alternative schedules. 

The entire Investigations Division staff will work Tuesdays-Thursdays. 

Half of the staff will work on Mondays, and the other half on Fridays. 

There shall be a supervisor scheduled all five days. 

This schedule shall not result in any additional costs to the City. If a 

Detective is called to court on his/her day off, the Detective shall take a 

different day off instead of requesting overtime for the court appearance. 

That “different day off” will not be taken on a day that impacts staffing. 

The Investigations Division shall continue to be off on City Holidays. 

If a holiday falls on a scheduled day off, the employee will take a 

“different day off.” A “different day off” shall not be taken on a day 

that impacts staffing levels. 

Investigations personnel will work cooperatively with each other to 

provide adequate coverage in the case of extended absences due to 

schools, vacations, and long-term illness or injury. 

This 4/10 schedule is hereby approved on a temporary basis. The Chief 

of Police, upon consultation with the Unit, may re-instate a different 

schedule at his discretion. 

6.0 MEDICAL AND LIFE INSURANCE 

6.1 The City shall retain in effect current health insurance coverages for all 

Unit employees. The City shall contribute the following monthly 


July 1, 2009 $833.15 

Should the City contribute more towards the monthly medical premium 

on behalf of the Fire or Management bargaining units during the term of 

this MOU, the same amount shall be contributed for this bargaining unit. 

6.2 Any increased medical costs of the employee share occurring during the 

fiscal year beginning July 1, 2009 of this agreement shall be paid by the 

City. 

5/21/2009 2:12 PM 

2 

Exhibit "A" 

2 of 4

6.3 The City agrees to pay a maximum of $50/month towards any increased 

medical costs of the employee’s share occurring during the fiscal year 

beginning July 1, 2010. Any additional increases beyond $50/month 

shall be shared equally (50/50) by employees and City. 

6.4 Any increased medical costs occurring during the balance of this 

agreement shall be shared equally by the employees and the City, with 

the maximum monthly increase for each party to be no more than 

$45/month per fiscal year (in additional premiums or plan changes) 

beginning July 1, 2011. If additional funding is needed to maintain the 

solvency of the self-funded health plan, in any fiscal year of this 

agreement beginning July 1, 2009, the parties agree to re-open this 


changes and/or a change from the self-funded health plan. 

6.5 The Unit agrees to participate jointly with the City and other employee 

groups in review of insurance coverages during the term of this 

agreement. Upon health insurance committee recommendations to 

change or modify insurance coverages; the parties agree to reopen 

negotiations on this issue only. Should changes occur due to insurance 

changes result in City cost below those set forth above, the intent of the 

parties is that the savings shall accrue to the employees. 

6.6 The City shall maintain in effect life insurance coverage of Fifty 

Thousand Dollars ($50,000). Dependent life insurance shall be Fifteen 

Hundred Dollars ($1,500.00). 

6.7 Unit members may participate in the City's Long Term Disability 

Insurance, at their own expense (approximately 75%). 

18.0 SALARIES 


salaries that were to go into effect on July 1, 2009 shall be deferred until 

effective the first full pay period including July 1, 2010. 


salaries that were to go into effect on January 1, 2010 shall be deferred 

until effective the first full pay period including January 1, 2011. 

All other terms and conditions of the 2007-2010 MOU, shall remain in full force and 

effect. 

This amendment shall become effective the first full payroll period following union 

ratification and Council adoption. 

5/21/2009 2:12 PM 

3 

Exhibit "A" 

3 of 4

IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to 

MOU the day and year first hereinabove written. 

PUBLIC SAFETY MID-MANAGEMENT UNIT 

Date: _____________________ 

Date: _____________________ 

Date: _____________________ 

_____________________ 

_____________________ 

_____________________ 


Date:______________________ 

_____________________ 


5/21/2009 2:12 PM 

4 

Exhibit "A" 

4 of 4

City Council __________ 


(CM) 



TO THE MEMORANDUM OF UNDERSTANDING FOR 

FISCAL YEAR 2009-2012 BETWEEN THE 

MUNICIPAL EMPLOYEE RELATIONS OFFICER OF 

THE CITY AND THE PUBLIC SAFETY MID- 

MANAGEMENT UNIT 



Management Unit on or about May 26, 2009, entered into a 



WHEREAS, the Council adopted Resolution No. _____ (CM) 

on May 26, 2009, ratifying said Memorandum of Understanding for 


Relations Officer of the City and the Public Safety Mid- 

Management Unit; and 



Reso No. (CM) 

Q:\COUNCIL\2009\052609\PD Midmanagement Side Letter.docx 

ri 5/21/2009 4:26:20 PM 

1 

AJS ______ CJP ______



and City of Watsonville Resolution No. 56-08 (CM), and City of 


faith and wish to implement a temporary alternative work schedule 

for personnel assigned to the Patrol Division of the Watsonville 

Police Department; and 






Letter to the Memorandum of Understanding. 



FOLLOWS: 

Reso No. (CM) 


ri 5/21/2009 4:26:20 PM 

2

That Side Letter to the Memorandum of Understanding 

between the Municipal Employee Relations Officer and the Public 

Safety Mid-Management Unit, attached hereto marked Exhibit "A," 

and incorporated herein by this reference, is hereby approved. 

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

Reso No. (CM) 


ri 5/21/2009 4:26:20 PM 

3

Side Letter between City of Watsonville and Watsonville Public 

Safety Mid-Management Unit 

Whereas, a staffing shortage in the POA has resulted in unfilled patrol positions and 

mandatory overtime for the patrol division; and 

Whereas, the City and the Watsonville Public Safety Mid-Management Unit desire to 

utilize an alternative 3/12 schedule for the patrol division on a temporary basis. 

Now therefore, the parties agree as follow: 

1. Section 5.3.1 of the MOU pertaining to 4/10 shifts for patrol will be replaced with 

the following 3/12 schedule for the term of this side letter. 

2. Beginning November 4, 2007, the patrol division shall work a 12 hour schedule, 

with 3 days of work one week and 4 days of work the following week as follows: 

Week S M T W TH F S 

1 12 12 12 12 12 12 12 

2 12 12 12 12 12 12 12 

3 12 12 12 12 12 12 12 

4 12 12 12 12 12 12 12 

The starting times for the morning shift will be 6 am. If the Chief of 

Police determines that for operational needs, that another starting time 

other than 6 am is appropriate, the Chief of Police will work with the 

Unit to determine that starting time. 

3. The work period shall be 7 days, with 4 hours of overtime built into the schedule 

per pay period. 

4. Instead of Holiday days off, employees shall receive an amount equivalent to 104 

hours of straight time pay per calendar year of the agreement. This amount shall 

be paid in equal payments. Any amount of holiday pay owing for 2007 shall be 

paid to employees per the previous sentence above or credited to the employees as 

accrued leave time. 

5. Shifts will continue to be assigned pursuant to MOU section 5.3.3 

6. Training days will be suspended during the period of the 3/12 schedule. Training 

will be accomplished during regularly scheduled shifts. 

7. Rest time between scheduled shifts and court duty shall continue to be managed 

between the officer and their Lieutenant pursuant to current practice. 

3-12 PSMM Side Letter 2009-2012 CC Draft 

5/21/2009 12:46 PM 

Exhibit "A" 

1 of 2

8. The 3/12 schedule shall continue through the end of the first shift bid of 2010. 

Either party may cancel this side letter effective at the end of the first shift bid in 

July 2010 provided written notice is given to the other by May 15, 2010. If 

neither party terminates this side letter at the end of the first shift bid in 2010, 

either party may terminate this side letter at the end of each shift bid provided 

written notice is given to the other a month in advance. 

9. The labor organization shall work with Department Administration to establish 

appropriate bidding procedures for the new shifts. 

10. The Department shall work with the labor organization regarding a possible 

sleeping area. 

___________________________ 


_________________________ 

Watsonville Public Safety 

Mid-Management Unit 

Date:_______________________ 

Date:_____________________ 

3-12 PSMM Side Letter 2009-2012 CC Draft 

5/21/2009 12:46 PM 

Exhibit "A" 

2 of 2







OF THE CITY AND THE SERVICE EMPLOYEES 

INTERNATIONAL UNION (SEIU), LOCAL 521, 

CLERICAL TECHNICAL UNIT FOR FISCAL YEAR 

2009-2010 


Employee Relations Officer and the Service Employees 

International Union, Local 521, Clerical Technical Unit, in 

accordance with provisions of the Milias-Myers-Brown Act 


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 






Reso No. (CM) 

Q:\COUNCIL\2009\052609\MOU SEIU.docx 

ri 5/21/2009 4:06:43 PM 

1 

AJS ______ CJP ______



FOLLOWS: 


Municipal Employee Relations Officer and the Service Employees 

International Union, Local 521, Clerical Technical Unit, attached 

hereto marked Exhibit “A,” and incorporated herein by this 

reference, is hereby ratified for the fiscal year July 1, 2009 to June 

30, 2010; or until a new agreement has been executed. 

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

Reso No. (CM) 

Q:\COUNCIL\2009\052609\MOU SEIU.docx 

ri 5/21/2009 4:06:43 PM 

2


BETWEEN 

SERVICE EMPLOYEES 

INTERNATIONAL UNION, LOCAL 521 

CLERICAL TECHNICAL 

AND 


2009-2010


1.0 RECOGNITION ............................................................................................................... 3 

2.0 NON-DISCRIMINATION ............................................................................................... 3 

3.0 PAST PRACTICES .......................................................................................................... 4 

4.0 UNION SECURITY ......................................................................................................... 4 

4.1 Memorandum of Understanding - Distribution ................................................................. 4 

4.2 Payroll Deduction .............................................................................................................. 4 

4.3 Agency Shop ...................................................................................................................... 5 

4.4 Union Notification ............................................................................................................. 5 

4.5 Bulletin Boards .................................................................................................................. 5 

4.6 Time Off for Union Officials ............................................................................................. 5 

4.7 Membership Lists .............................................................................................................. 6 

4.8 Union Stewards .................................................................................................................. 6 

4.9 Visits By Authorized Union Representatives .................................................................... 6 

5.0 COMPENSATION ........................................................................................................... 7 

5.1 Salary Adjustments ............................................................................................................ 7 

5.2 Other Compensation .......................................................................................................... 7 

5.3 Overtime ............................................................................................................................ 9 

5.4 Bilingual Pay ................................................................................................................... 10 

5.5 Retirement ....................................................................................................................... 11 

5.6 Deferred Compensation ................................................................................................... 11 

5.7 Early Retirement .............................................................................................................. 12 

5.8 Reclassification ................................................................................................................ 12 

6.0 INSURANCE .................................................................................................................. 12 

6.1 Health Insurance .............................................................................................................. 12 

6.2 Workers’ Compensation .................................................................................................. 13 

6.3 Life Insurance ............................................................................................................... 14 

6.4 Long Term Disability Insurance ...................................................................................... 14 

7.0 LEAVES .......................................................................................................................... 14 

7.1 Vacation Leave ................................................................................................................ 14 

7.2 Holidays ........................................................................................................................... 15 

7.3 Sick Leave ....................................................................................................................... 15 

7.4 Jury Duty and Leave for Attendance in Court ................................................................. 17 

7.5 Rest Periods ..................................................................................................................... 17 

7.6 Blood Donation ................................................................................................................ 17 

7.7 Military Leave ................................................................................................................. 17 

7.8 Leave of Absence Without Pay ....................................................................................... 18 

7.9 Maternity Leave .......................................................................................................... 18 

7.10 Family Care and Medical Leave Act: .......................................................................... 18 

7.11 Administrative Leave .................................................................................................. 19 

8.0 BEREAVEMENT LEAVE ............................................................................................ 19 


9.1 Certificates: ...................................................................................................................... 20 

9.2 Management Rights: ........................................................................................................ 20 

9.3 Peaceful Performance .................................................................................................. 21 

9.4 Alternative Schedules/Flex Time .................................................................................... 21 

9.5 Severability ...................................................................................................................... 21 

9.6 Work Schedules ............................................................................................................... 21 

9.7 Health Savings Account .................................................................................................. 22 

9.8 Contracting Out ............................................................................................................... 22 

9.9 Vacation Scheduling ..................................................................................................... 22 

9.10 Personnel Files ............................................................................................................ 23 

9.11 Clothing - Recreation Department .............................................................................. 23 

9.12 Boot Allowance ........................................................................................................... 23 

SEIU 521 2009-2010 MOU CC Draft 

5/21/2009 1:57 PM 

1

9.13 Video Display Terminals Use (VDT) ......................................................................... 23 

9.14 Grievance Procedures .................................................................................................. 24 

9.15 Discipline .................................................................................................................... 25 

9.16 Layoff Policy and Procedure ....................................................................................... 26 

9.17 Safety Committee ........................................................................................................ 28 

9.18 Compensation Survey.................................................................................................. 28 

9.19 Temporary Hours ........................................................................................................ 28 

9.20 Probation ..................................................................................................................... 28 

10.0 FLEXIBLY STAFFED POSITIONS ............................................................................ 28 

11.0 RETIREMENT REOPENER ........................................................................................ 29 

12.0 ENACTMENT ................................................................................................................. 29 


5/21/2009 1:57 PM 

2


BETWEEN 

SERVICE EMPLOYEES INTERNATIONAL UNION, LOCAL 415 

CLERICAL TECHNICAL 

AND 


2009-2010 


of Service Employees International Union Local 521 Clerical Technical Unit and the 

representatives of the City of Watsonville on all matters contained herein for employees of 

the City of Watsonville in the Clerical Technical Unit. The parties hereto agree to jointly 

recommend to the City Council of the City of Watsonville that one or more resolutions be 

adopted effectuating the following changes in the salaries, benefits, and other terms and 

conditions of employment for said employees in the Clerical Technical Unit. 

This Agreement shall become effective July 1, 2009, and shall terminate June 30, 2010. 



1.0 RECOGNITION 

1.1 Pursuant to the Meyers-Milias-Brown Act and the City's personnel rules 

and regulations, the Watsonville Clerical/Technical Employees Union, 

affiliated with Service Employees International Union, Local 521 

(hereinafter referred to as the Union), is hereby recognized as the 

exclusively recognized employee organization for represented Unit 

employees. This bargaining unit is formally titled the Clerical/Technical 

Unit. Classifications in the bargaining unit are listed in Appendix B. 

2.0 NON-DISCRIMINATION 

2.1 The City and the Union agree that there will be no discrimination against 

any person employed or applying for employment because of race, color, 

religion, physical handicap, medical condition, national origin, ancestry, 

sex, age, sexual preference. The parties also agree to support Affirmative 

Action efforts which are intended to achieve equal employment 

opportunities as provided for in Federal and State requirements. There 

will be no coercion, intimidation or discrimination against any bargaining 

unit employee for exercising his/her right to form, join and participate in 

the activities of the Union, nor shall there be coercion, intimidation or 

discrimination against any 


5/21/2009 1:57 PM 

3

3.0 PAST PRACTICES 

bargaining unit employee for exercising his/her right not to join or 

participate in the activities of the Union. 

3.1 The parties agree that they shall adhere to established labor relations' 

principles in handling past practices. Specifically, in handling past 

practice issues within the scope of representation: 

4.0 UNION SECURITY 

1. Past practices superseded by revised MOU language are null and 

void; 

2. Past practices which contradict existing MOU language or written 

City rules shall be null and void upon reasonable notice from the 

City that the language will be followed; 

3. Past practices within scope which are not covered by MOU 

language or City rules shall remain in effect through the term of the 

MOU unless the City has given notice and met and conferred. 

4.1 Memorandum of Understanding - Distribution 

The City will distribute to all Unit members a copy of the signed 

Memorandum of Understanding. When a person is hired in any 

classification covered by this Memorandum of Understanding, the City 

shall notify the person that the Union is the recognized employee 

organization. The City will provide that person with a copy of the current 

Memorandum of Understanding. 

4.2 Payroll Deduction 

The City will make available payroll deductions for Unit members for 

both regular Union dues and Committee On Political Education 

(C.O.P.E.) deductions; and remit these funds monthly to the Union by 

separate check. These deductions are subject to the following conditions: 

A. Deductions shall be withheld only if the employee so authorizes in 

writing on the form provided by the Union and approved by the 

City. 

B. The dues and C.O.P.E. deductions will show as separate payroll 

deductions on the employees check. 

C. The Union will indemnify and hold harmless the City, its 

employees, officials and representatives from any claims, litigation 

or liability arising from the implementation of this section. 


5/21/2009 1:57 PM 

4

4.3 Agency Shop 

Employees are required to either join the Union or pay a service fee 

reflecting the cost of representation. 

The City and Union agree: 

(1) Employees will be informed as to the provisions and practical effect 

of Agency Shop agreements. 

(2) The Union will indemnify and hold the City harmless from any and 

all liability arising out of the implementation and administration of 

the Agency Shop provision. 

(3) The Union shall be responsible for enforcing the provisions of this 

section using appropriate civil procedures. The City is not 

responsible for disciplining employees for violation of this section 

The Union agrees to adhere to all statutory and judicial requirements, and 

to maintain an appropriate complaint procedure. The Union shall also 

establish alternative procedures for employees who are members of bona 

fide religion, body, or sect which has historically held conscientious 

objections to joining or financially support any public employee 

organization, to make alternative charitable contributions in accordance 

with Government Code Section 3502.5. 

4.4 Union Notification 

Except in cases of bona fide emergencies, the Union shall be given 

reasonable advance written notification of any ordinance, rule, resolution 

or regulation directly relating to matters within the scope of representation 

proposed to be adopted by the City Council or management and shall be 

given the opportunity to meet and confer with the City representatives 

prior to its adoption. 

4.5 Bulletin Boards 

The Union shall be provided reasonable designated places on City bulletin 

boards which do not interfere with the City's official use of the bulletin 

board. 

The Union agrees that notices posted on bulletin boards shall not contain 

anything which may be construed as maligning and/or derogatory to the 

City or its representatives. 

The Union shall be responsible for placement of and removal of outdated 

posted material. 

4.6 Time Off for Union Officials 


5/21/2009 1:57 PM 

5

During the term of this agreement, a reasonable number (not to exceed 

four) of Union members shall be allowed a reasonable amount of paid 

release time off for meet and confer or meet and consult sessions 

scheduled with the City Council's designated representatives providing 

there is no disruption of work in the employee's division. The Union shall 

notify the City Manager in advance of the meeting of the specific 

members who will be in attendance. Union members shall obtain 

permission through supervisory channels before leaving their work or 

work locations. 

4.7 Membership Lists 

The City shall monthly provide the Union with an alphabetical list of the 

names and classifications of Unit members. The Union agrees to notify 

all Unit members of this provision and to indemnify the City against any 

suits arising from the implementation of this provision. 

4.8 Union Stewards 

The Union shall be authorized to designate four (4) employees within the 

unit as stewards and must furnish a list of these stewards to the Personnel 

Department on an annual basis. Stewards shall be allowed a reasonable 

amount of paid release time for the purpose of representing a unit 

employee within the steward's area of representation in the filing or 

processing of grievances or disciplinary appeals as long as there is no 

interruption of work in the employee's division. Stewards must first 

obtain permission through appropriate management channels before 

leaving their work or work location for such purposes. There shall be no 

discrimination, intimidation or coercion of any steward exercising his/her 

rights under the grievance procedure. 

Union Stewards are responsible for the full and timely completion of their 

workload. 

Under this section, Stewards are considered Union Representatives except 

for official notification purposes which must include the paid Union 

representatives. 

Time spent in the meet and confer process is not considered to be steward 

work for the purposes of this section. 

4.9 Visits By Authorized Union Representatives 

With prior notice to the appropriate Manager, authorized Union 

representatives shall have access to City employees during off duty time 

in the non-work hours of City facilities for the purpose of conducting 

Union business. 

With prior notice to the appropriate Manager, paid staff of the Union shall 

be allowed reasonable access to employees during the work period and at 


5/21/2009 1:57 PM 

6


the work location to investigate and/or represent employees within the Unit 

in a grievance or appeal matters. 

With prior notice to the appropriate Manager, brief, incidental contacts to 

distribute notices/information, etc., may be allowed during work time only 

if there is no disruption of work. 

5.1 Salary Adjustments 

5.1.1 Effective retroactive to the first full payroll period with a beginning 

date on or after July 1, 2006, all members in the bargaining unit who 

have been compensated at the top “G” step of the salary range for at 

least one year (at least 2080 hours) shall be advanced to a new step 

that is 5% higher on the salary schedule. This elevated step shall 

then become the new top “G” step. All other steps below this new 

“G” step shall be re-lettered accordingly with the current “A” step 

being eliminated. All employees below the elevated “G” step, 

including those at the current “A” step, while at a re-lettered step, 

remain at their current salary rate, but shall advance in step at their 

normal anniversary date in accordance with existing City rules on 

step advancement. 


2006, base salaries shall be increased 1.5%. 





5.2 Other Compensation 

5.2.1 Step Increases for Employees in the Competitive Service: 

a. The first step is the minimum rate and shall normally be the 

hiring rate for the class. 

b. In cases where it is difficult to secure qualified personnel, or 

if a person of unusual qualifications is considered for hire, 

the City Manager may authorize hiring at any step. 

c. Salary advancement shall be predicated upon merit as 

established by the employee’s performance. Except as 

otherwise provided in this rule, each regular employee may 

receive a step increase within the salary range for his/her 

classification at the end of each year of continuous service 


5/21/2009 1:57 PM 

7


5/21/2009 1:57 PM 

until he/she reaches top step, if justified by the employees 

performance. 

d. In case of less than fully satisfactory performance, a step 

increase in salary will be withheld for regular employees. 

The Department Head shall submit to the Personnel Director 

in writing at least sixty (60) days prior to the employee's 

anniversary date a recommendation approving the regular 

step increase. 

Denial of a step increases shall be on a merit basis only. 

Step increases shall not be denied for disciplinary reasons 

and thus shall not be subject to disciplinary or other appeal. 

Employees may place in their personnel file a reasonable 

amount of rebuttal information to any step increase denial. 

e. Whenever possible, employees will be given ninety (90) 

days prior notice that their performance is not adequate to 

achieve an otherwise scheduled step increase. Employees 

whose step increases are delayed will receive quarterly 

evaluations with specific goals until such time as their 

performance has improved to merit the step increase. 

All unit workers shall receive an annual evaluation. 

5.2.2 Salary Upon Transfer or Promotion 

The transfer of an employee shall not be cause for a change in 

salary. The salary of an employee who is promoted shall 

normally be set at the lowest step of the range for the new class 

which results in an increase of no less than five (5%) percent. 

5.2.3 Temporarily Working Out Of Classification 

In every City department subordinate employees are expected to 

act as relief for their superiors. Employees also may be assigned 

to a higher classification, which is vacant due to the absence or 

resignation of another employee. This provides training 

opportunities to help qualify employees to successfully compete 

for future promotion. Acting as relief for a lengthy period, 

however, should be recognized by added compensation since a 

higher level of continuing responsibility is involved. 

Procedure. With prior management approval whenever a 

subordinate employees acts as relief and must perform 

substantially higher duties for a superior for more than fifteen 

(15) cumulative working days in a fiscal year, an appropriate 

salary adjustment shall be made pursuant to these rules. The 

salary adjustment shall become effective on the 16th day of the 

temporary assignment and shall not be retroactive. Upon 

8

eturning to the responsibility of his/her normal position, salary 

shall be returned to the normal level. 

This rule shall not apply to department head or mid-management 

personnel, except as determined individually by the City 

Manager. 

Compensation for work out of classification will be the lower 

step in the higher salary range with pay which provides a 

minimum increase of five (5%) percent above the normal rate of 

pay for the employee. 

5.3 Overtime 

5.3.1 The regular work week for covered employees shall consist of 

forty (40) hours. 

5.3.2 An employee shall be entitled to overtime compensation for all 

hours the employee is required to work in excess of the 

regularly scheduled work week. 

5.3.3 Compensation for overtime shall be at a rate of one and onehalf 

(1-1/2) times the regular rate of pay for hours worked over 

the 40-hour work period. At the employee's option, 

compensatory time may be selected in lieu of paid overtime. 

5.3.4 Employees shall have the option of earning (accruing in a 

year) up to forty (40) hours of Compensatory Time Off (CTO) 

per year. CTO may be accrued to a maximum of forty (40) 

hours. However employees may exceed the forty (40) hours 

accrual limit upon Department Head approval. Upon request, 

an employee shall receive payment at his or her regular hourly 

rate for CTO accrued in excess of forty (40) hours. Payment 

shall be in the first pay period in December. 

5.3.5 CTO shall accrue at the overtime rate of one and one-half (1- 

1/2) hours of CTO for each hour of overtime worked. 

5.3.6 CTO leave shall be taken in conformance with established 

departmental and City leave policies. 

5.3.7 Employees shall be entitled to overtime compensation for 

attendance of special training sessions when such special 

training is required by the City and the training requires 

attendance in excess of the regular forty (40) hours work week. 

5.3.8 For purposes of overtime compensation, paid leave shall be 

considered as time worked. 


5/21/2009 1:57 PM 

9

5.3.9 Employees physically called back to work for overtime work 

which is not contiguous to their regular work shift shall receive 

a minimum of three (3) hours compensation at the appropriate 

rate of pay for all calls responded to within the 3 hour 

callback. 

5.3.10 Whenever possible, the City will solicit volunteers from 

qualified available personnel before assigning overtime work. 





(a) 

(b) 




annual testing requirement for individuals upon recommendation of 

the Department Head. Annual basis refers to fiscal year; and 


basic written translations on a regular and on-going basis, as 

certified by the Department Head 


(a) 

For employees hired after January 1, 2007 the City shall pay a 

stipend of $250/month, pro-rated for part-time employees. 

(b) Employees eligible for Level I Premium Pay before January 1, 2007 

shall receive premium pay equal to five percent (5%) of his/her base 

salary. As of January 1, 2007, employees shall receive five percent 

(5%) capped as of that date, with the premium rounded to the 

nearest dollar. A list of each employee’s premium pay under this 

section will be provided to the Union. Employees who receive the 

five percent premium, above, may irrevocably opt into the 

$250/month stipend specified in (a) above. 

5.4.3 Level II: 




residents (i.e. City mailers, city council minutes, inserts in city utility bills, 

etc.) 

(a) 



5/21/2009 1:57 PM 

10

(b) 




5.4.4 Testing: 

The City will provide a bilingual test to interested and eligible members of 

this unit, within 60 days of the ratification and approval of this contract by 

City Council. 

5.5 Retirement 

5.5.1 Employee Contribution 

For the term of this Agreement, the City agrees to contribute to the 

California Public Employees Retirement System ("CalPERS") on behalf of 

each employee, seven (7%) percent of the employee's compensation upon 

which retirement contributions are calculated (hereinafter "7%"). Said 

contributions shall be considered deferred compensation, not salary, and 

shall be credited to the employee's retirement account. Any future income 

tax obligations resulting from these contributions shall be the exclusive 

responsibility of the employee. In the event the Internal Revenue Service 

shall change its current position and determine that such contributions 

constitute salary, not deferred compensation, any resulting tax obligations 

shall be the exclusive responsibility of the employee and the City shall not 

be held responsible therefore. 

For purposes of salary comparison, the employee retirement contribution 

paid by the City shall be considered as part of base pay. 

The City shall report the seven (7%) percent retirement contribution as 

special compensation. Pursuant to Section 20636(c)(4) of the California 

Government Code, this seven (7%) percent retirement contribution shall 

then be considered compensation for retirement purposes. 

5.5.2 Retirement Plan 

The City shall retain in effect the 2% at 55 retirement plan for Unit 

employees. The City shall continue in effect the current options including 

Government Code Section 20862.8 - Credit for Unused Sick Leave. The 

City plan includes Optional Death/Survivor Benefit pursuant to 

Government Code section 21548. 





5/21/2009 1:57 PM 

11

5.7 Early Retirement 


5/21/2009 1:57 PM 

Should the City wish to make available early retirement to Unit employees 

through PERS, it shall provide prior notice to the Union and, upon request, 

meet and confer prior to implementation. 

5.8 Reclassification 

6.0 INSURANCE 

Employees may request that their Department Head ask the City Personnel 

Department to conduct a classification study on their job classification 

pursuant to the City Personnel Rules. Thereafter, such requests shall be 

made only during the month of January. 

If the Department Head declines to make the request, they shall forward a 

copy of the employees initial request and their denial to the City Personnel 

Officer. All employees shall receive response from the City as to the 

disposition of their reclassification request. 

The City will complete any reclassification request accepted for study 

within six (6) months of its receipt. 


6.1.1 The City shall retain in effect current health insurance 

coverages for all Unit employees. The City shall contribute 

the following monthly amounts per full time employee towards 

health insurance coverages: 

October 1, 2006 $776.15 

July 1, 2007 $821.15 

For those employees in the following classifications the City 

shall contribute $26 additional dollars per month towards 

health insurance coverage: 

Accounting Assistant, Office Assistant II, Office Assistant I, 

Police Clerk I, Permit Clerk, Library Clerk, Recreation Leader. 


changes fail to fund the Self-Funded Health Plan without a 

deficit for fiscal year 08/09, the parties agree to re-open this 

section of the agreement to discuss additional City and 

employee contributions/plan changes and/ or a change from 

the current self-funded health plan. Such a re-opener shall 

occur upon a recommendation of the CEHC for either plan 

changes or additional premium contributions in fiscal year 

08/09, but no later than May 30, 2008. If contribution 

increases are necessary for the 08/09 plan year, the City and 

12

Employees shall be shared equally, provided that increased 

City contributions do not exceed $45/month per employee. 

6.1.3 The City and employees agree to jointly participate in the City 

Employees Health Committee (CEHC) as outlined in the 

bylaws dated July 1992. 


5/21/2009 1:57 PM 

6.1.4 Regular part-time employees will be fully covered at the 

employee only level at the City's expense. The employee shall 

have the option of covering additional dependents at their own 

expense. This shall be determined by utilizing the three tier 

rate which the City has established for the COBRA and other 

purposes (less any surcharges). To cover one (1) dependent, 

the employee will pay the difference between the employee 

only rate and the employee plus one rate. To cover the family, 

the employee will pay the difference between the employee 

only rate and the full family rate under the three tiers. 

The decision to cover family members shall be made during a 

one time election when this provision becomes effective. 

Thereafter, employees may only add or delete family members 

in accordance with plan rules. 

Regular part-time employees employed on or before 

December 1, 1998, in the thirty (30) hour category, shall 

continue to receive full health insurance benefits. 

6.1.5 The Unit agrees to participate jointly with the City and other 

employees' groups in review of insurance coverages during the 

term of this agreement. Upon CEHC recommendations to 

change or modify insurance coverages, the parties agree to 

reopen negotiations on this issue only. The CEHC shall 

consider PERS, SEIU Health and Welfare Trust, Operating 

Engineers Trust or any other options suggested by the Union. 

Should changes occur due to insurance changes resulting in 

City costs below current costs, the intent of the parties is that 

the savings shall benefit the bargaining unit. 

6.1.6 Other than a qualifying event (i.e., birth of a child, divorce, 

death) an employee who chooses not to participate in the 

health plan will be subject to the recertification process as 

defined by the self-insured plan. 

6.2 Workers’ Compensation 


receive the maximum weekly Workers' Compensation benefit 

as determined by State Law. 

13

6.2.2 In addition to this amount, the employee may receive an 

appropriate amount of accrued sick, vacation and CTO leave 

pay to provide for the difference between the established 

Workers' Compensation amount and the employee's regular 

gross pay. 

6.2.3 The employee may also receive Fifty ($50.00) Dollars per 

week extra disability coverage in lieu of accrued sick, vacation 

and CTO leave pay. 



6.2.5 It shall be the responsibility of the employee to notify the 

Finance Department within three (3) days of the injury or 

illness if the extra coverage option described in Section 6.2.3 

above is to be implemented. 

6.2.6 Absent notification to the contrary, the Finance Department 

will automatically apply accrued sick leave with the 

established Workers' Compensation amount to equal the 

employee's gross pay. 

6.2.7 The Fifty ($50.00) Dollar per week excess coverage shall not 

apply until the seventh (7th) calendar day following the injury 

or illness event. 


Upon ratification, the City will provide life insurance coverage of fifty 

thousand ($50,000) dollars per employee for the term of this agreement. 

If allowed by the City's Insurance Carrier, employees will be allowed to 

purchase additional insurance coverage at the group rate. 


7.0 LEAVES 

The City shall pay the monthly cost of Long Term Disability Insurance 

for all unit members for the term of the agreement. 

All leaves provided in this section shall be granted to full time employees at the 

rates described. Regular part time employees shall receive paid leaves of absence 

on a prorated basis given the ratio of their actual work schedule to full time. 


7.1.1 Each employee shall accrue vacation as specified below: 


5/21/2009 1:57 PM 

14

7.2 Holidays 


5/21/2009 1:57 PM 




7.1.2 Employees currently having more than two (2) times their 

annual vacation accrual on the books shall have until January 

1, 1993, to bring their accrual within the accrual maximum per 

Personnel Rule XV, Sec.4, paragraph 5. Should employees be 

denied requested vacation due to the needs of the City, a 

reasonable time (up to ninety (90) days) extension for vacation 

use will be granted. 



Martin Luther King's Birthday (Third Monday in January) 


Washington's Birthday (Third Monday in February) 

Memorial Day (Last Monday in May) 

July Fourth 

Labor Day (First Monday in September) 

Veterans Day (November 11) 


Friday following Thanksgiving Day (in lieu of Election Day) 


Christmas Day (December 25) 







regulations. 

Employees not normally required to work on a holiday but who are 

directed to do so due to an operational need shall be compensated at the 

appropriate rate of pay for all hours actually worked on the holiday. In 

addition, the employee shall receive his/her regular holiday pay. 

Recognized holidays which occur while an employee is on paid vacation 

leave shall be charged as holiday leave and not affect the employee's 

vacation balance. 


7.3.1 Each employee shall accrue sick leave in the amount of one 

and one-quarter (1-1/4) days per month of service (10 hours). 

15

Sick leave is payable only in the cases of bona fide illness or 

injury. 

7.3.2 The maximum accumulation of unused sick leave is 125 days 

(1,000 hours). Sick leave accumulated in any calendar year in 

excess of 125 days (1,000 hours) shall be paid at the rate of 

fifty (50%) percent of such excess. Upon a thirty (30) day 

notice from the employee, the employee may select CTO in 

lieu of a paid rate of 50% in excess of 125 days. Employees 

may donate hours in excess of 1,000 at the 50% rate to other 

employee’s catastrophic leave accounts. The balance of such 

unused sick leave is lost and the sick leave accrual is reduced 

to 125 days (1,000 hours) on January 1 of each year. 

7.3.3 Employee sick leave of up to one-half (1/2) of an employee's 

annual accrual (one-half of the annual accrual is currently 7 

1/2 days) may be utilized for the care of immediate family in 

the event of an injury or illness in accordance with the City's 

current sick leave policy. 



7.3.5 In case of death in immediate family an employee may be 

granted accrued sick leave not to exceed three (3) days. 

Additional time off for this purpose must be vacation, C.T.O., 

or unpaid leave. Bereavement leave must be approved by the 

Department Head. 

7.3.6 When an employee becomes ill while on vacation or other 

authorized leave (except leave without pay) or otherwise 

becomes eligible for sick leave benefits, his/her absence from 

the job for the period during which he/she is thus eligible for 

sick leave may be so charged. In such event the employee 

must notify his/her department head or supervisor not later 

than four (4) hours after the start of the workday and shall 

submit upon his/her return a licensed health care provider's 

certificate. In cases of bonafide emergency, the four (4) hour 

notice requirement may be waived. 

7.3.7 Immediate Family. For the purposes of administering this 

section, the immediate family shall include parents, brothers, 

sisters, spouses, domestic partners and children. Where 

unusually close ties exist, the department head may determine 

other relationships to be included in this definition on a caseby-case 

basis. 


5/21/2009 1:57 PM 

16

7.4 Jury Duty and Leave for Attendance in Court 


5/21/2009 1:57 PM 

Every employee of the City who is called or required to serve as a trial 

juror, upon notification and appropriate verification submitted to his/her 

supervisor shall be entitled to be absent from his/her duties with the City 

during the period of such service or while necessarily being present in court 

as a result of such call. 

Any employee who during the time regularly required for their employment 

is compelled by subpoena to attend any hearing or trial for the purpose of 

testifying, may, with the approval of the department head, absent 

themselves from duty without loss of pay during the period they are 

required to remain in attendance at such hearing or trial, except that any 

such employee shall demand and obtain from the person who subpoenas 

from them any fee allowed by law or otherwise payable for such attendance 

in court, and shall promptly pay to the Finance Director the full amount of 

fee received for such attendance in court. 

All employees shall receive their regular wages or salary during the time 

they are required to be absent from the duties of their position to attend any 

court in response to a summons for jury duty or while serving on a jury, but 

shall pay over to the City any fees, excluding mileage allowances received 

for such attendance or service. 

Exceptions to this procedure may be made only with the prior authorization 

of the City Manager. 

7.5 Rest Periods 

Employees shall be allowed a 15-minute rest period during each four hours 

of regular work. Departments may make reasonable rules concerning the 

scheduling of same. Rest periods not taken shall be waived. Rest periods 

cannot be taken at the beginning or end of shift or combined with a meal 

period unless approved. This is not effective in periods of a bona fide 

emergency nature. Rest periods shall be considered work time. 

7.6 Blood Donation 

An employee may be granted paid release time of up to a maximum of one 

(1) hour, chargeable to sick leave for donating blood during regularly 

scheduled hours of work. The length of such leave must be approved by the 

supervisor and is dependent upon the nature and scheduling of the work 

performed and the travel distance required. 

7.7 Military Leave 

Military leave shall be granted in accordance with the provisions of state 

law. All employees entitled to military leave shall give the appointing 

power an opportunity within the limits of military regulations to determine 

when such leave shall be taken. 

17

7.8 Leave of Absence Without Pay 

Upon the recommendation of the Department Head, the City Manager, in 

his/her unrestricted discretion, may grant a regular or probationary 

employee leave of absence without pay or seniority, not to exceed twelve 

(12) months. No such leave shall be granted except upon written request of 

the employee, setting forth the reason for the request, and the approval will 

be in writing. Upon expiration of a regularly approved leave or within a 

reasonable period of time after notice to return to duty, the employee shall 

be reinstated in the position held at the time leave was granted. Failure on 

the part of an employee on leave to report promptly at its expiration, or 

within a reasonable time after notice to return to duty, shall be deemed to be 

discharged. The depositing in the United States mail of a first class letter, 

postage paid, addressed to the employee's last known place of address, shall 

be reasonable notice. 

Department Heads may grant a regular or probationary employee leave of 

absence without pay, not to exceed one (1) calendar week. Such leaves 

shall be reported to the Personnel Director. 

7.9 Maternity Leave 

Female employees shall be granted a leave not to exceed four (4) calendar 

months upon presentation of proof of pregnancy. The non-compensated 

portion of the leave shall not be granted until the employee has exhausted 

all accrued vacation, compensatory and sick leave time except upon the 

authority of the Personnel Director. Maternity leave may be extended 

beyond four (4) months upon the request of the employee, the 

recommendation of the Department Head and the approval of the City 

Manager. 

7.10 Family Care and Medical Leave Act: 


(FMLA) and the California Family Rights Act (CFRA), the City 

of Watsonville (City) will provide unpaid family and medical care 

leave for eligible employees for up to 12 weeks per 12-month 

period for the following reasons only: 

a. The birth of a child or to care for a newborn of an 

employee; 

b. The placement of a child with an employee in 

connection with the adoption or foster care of a child; 

c. Leave to care for a child, parent or spouse who has a 

serious health condition; or 


5/21/2009 1:57 PM 

18

d. Leave because of a serious health condition that makes 

the employee unable to perform the functions of his/her 

position. 


1. Has been employed for at least 12 months; and, 

2. Has been employed for at least 1,250 hours (1,040 

hours for permanent part-time employees working 

between 20 and 30 hours per week) during the 12- 

month period immediately preceding the 

commencement of the leave. 

7.10.3 If an employee requests leave for any reason permitted under 

this policy, he/she must exhaust all accrued leaves (except sick 

leave) in connection with the leave. The exhaustion of 

accrued leave will run concurrently with the leave under this 

policy. 


condition, in addition to exhausting accrued leave, the 

employee must also exhaust accrued sick leave. Workers 

compensation disability leave will run concurrently with 

family leave. 


information, refer to the City’s Administrative Rule on this 

subject. 


Employees with more than twenty (20) years of service shall receive two 

days of administrative leave upon reaching twenty years of service and each 

year thereafter. Unused administrative leave as of June 30 shall be paid off 

at a regular rate of pay for succeeding month. 

8.0 BEREAVEMENT LEAVE 

In case of death in the immediate family an employee may be granted accrued sick 

leave not to exceed three (3) days. In cases involving out-of-state funerals, an 

additional two (2) days may be granted. Additional time off for this purpose must 

be vacation, C.T.O., or unpaid leave. Bereavement leave must be approved by the 

Department head. 


5/21/2009 1:57 PM 

19


9.1 Certificates: 

The City shall provide necessary training for covered employees in order 

to satisfy mandatory certification requirements when such requirements 

are implemented subsequent to the employee being hired by the City and 

are necessary for the employee to maintain incumbent status in a given 

classification. 

9.2 Management Rights: 

All City rights, under state law and charter, and all City rights which 

existed prior to the recognition of the Clerical-Technical Unit shall remain 

vested with the City, unless expressly abridged by this M.O.U. These 

rights include but are not limited to: 

• The exclusive right to determine the mission of its constituent 

departments, commissions, boards; 

• Set standards and levels of service; 

• Determine the procedures and standards of selection for employment 

and promotions; 

• Direct its employees; 

• To relieve its employees from duty because of lack of work or other 

lawful reasons; 

• Maintain the efficiency of governmental operations; 

• Determine the methods, means and numbers and kinds of personnel by 

which government operations are to be conducted; 

• Determine the content and intent of job classifications; 

• Determine methods of financing; 

• Determine style and/or types of City-issued wearing apparel, 

equipment or technology to be used; 

• Determine and/or change the facilities, methods, technology, means, 

organizational structure and size and composition of the work force and 

allocate and assign work by which the City operations are to be 

conducted; 


5/21/2009 1:57 PM 

20


5/21/2009 1:57 PM 

• To assign work to and schedule; 

• establish and modify productivity and performance programs and 

standards; 

• Discipline employees in accordance with applicable law and City 

Rules; 

• Take all necessary actions to carry out its mission in emergencies; and 

• Exercise complete control and discretion over its organization and the 

technology of performing its work. 

In the exercise of the rights set forth in Section 9.2, the City has the right 

to make reasonable rules and regulations. 

9.3 Peaceful Performance 

During the life of this Agreement, Unit employees shall not engage in any 

work stoppages, strikes, slow-downs, or boycott picketing against the 

City. No lock-outs shall be made by the City. 

In the event that any employee covered by this Agreement, violates the 

provisions of this section, the Unit shall make a good faith effort to stop 

such violations of this section. 

9.4 Alternative Schedules/Flex Time 

The City acknowledges that there may be benefits both to the City and to 

the employees in alternative schedules. Employees may request that their 

department heads consider alternative scheduling of their work. 

Examples of alternate schedules include flex-time, job sharing and 

voluntary reduced work hours. 

9.5 Severability 

Should any of the provisions herein contained be rendered or declared 

invalid by reason of any State or Federal Legislation or court action, such 

invalidations shall not invalidate the remaining portions of this 

Memorandum of Understanding which shall remain in full force and 

effect, insofar as such remaining portions are severable. 

9.6 Work Schedules 

9.6.1 Non-Recreation Department Employees 

9.6.1.1 Regular full-time employees shall be assigned a regular 

work schedule which shall include two (2) consecutive days off. 

Except in cases of emergency, at least five (5) days shall be 

provided to an employee prior to a change in the regular work 

schedule. 

21


5/21/2009 1:57 PM 

9.6.1.2 Library Employees: 

For full-time library employees working Saturdays only, the 

Department shall have the option of: 

1. Scheduling employees for Sunday/Monday off 

2. Scheduling employees for Sunday off one week; to be 

followed by Friday, Saturday and Sunday off the following 

week. 

9.6.2 Work Schedules - Recreation Department Employees 

Regular full-time Recreation Department employees shall have their work 

schedules set on a weekly basis. Their schedules shall vary as necessitated 

by their program schedule. 

9.6.3 Work Schedule Changes 

Except in the event of an emergency all employees shall receive at least two 

weeks advance notice of any change in their regular schedule. 



and will meet and confer with the unit regarding the potential benefit structure 

prior to implementation. 

9.8 Contracting Out 

Before submission of a recommendation to contract out any function 

traditionally performed by service employees which would result in a 

reduction of the currently employed work force, the Union will be offered the 

opportunity to examine the proposal for a reasonable period of time prior to 

Council consideration and to submit recommendations. The City will meet 

and confer over the impact of proposed layoffs prior to the implementation of 

said layoffs. Whenever reasonably possible, displacement of Unit employees 

will be avoided and/or minimized. Nothing in this section shall be construed 

to limit the City Council's ability to contract out work, in its discretion. 

9.9 Vacation Scheduling 

Vacations shall be scheduled upon the request of the employee and the 

approval of the Department. Both the desire of the employee and operational 

needs shall be considered by the Department in reviewing the approving or 

denying vacation requests. 

Departments shall establish annual time periods for initial vacation sign ups 

by January 31 or each year. After January 31, sign ups shall be on a first 

22

come first serve basis. If more employees request vacation for a given time 

than can be accommodated by the Department; the more senior employee 

shall be given the time off. If the conflict involved a major holiday, 

subsequent scheduling shall be on a rotational basis. Nothing herein shall 

require the cancellation of an already approved vacation for a less senior 

employee upon the request of a more senior employee. 

9.10 Personnel Files 

There shall be only one official personnel file which shall be maintained in 

the City's Personnel Department. Employees shall have the right to review 

their Personnel files or authorize, in writing, review by their representatives. 

No adverse material will be placed in an employee's personnel file without 

prior notice and a copy given to the employee. Employees shall have thirty 

(30) days from date employee receives adverse material to place a 

reasonable amount of rebuttal material in response to adverse material in 

their personnel files. 

9.11 Clothing - Recreation Department 

Regular full and part time employees shall be provided the following 

clothing items annually: 

1. Four T-Shirts 

2. One Sweat Shirt 

In addition, employees may purchase the Department approved jacket and 

additional T-shirts and/or Sweat shirts at their own expense. 

The items provided shall be available once annually, on or about the 

employees anniversary date. 


Field employees required to wear work/safety boots shall be allowed an 

annual reimbursement of up to One Hundred and twenty-five ($125.00) 

per year towards the purchase of approved safety boots/shoes. Payment 

shall be made on a reimbursement basis upon proof of purchase. Once 

purchased, the approved safety boots/shoes must be worn while on the 

job. Boots/shoes may be worn during regular work hours only (including 

to and from work). 

9.13 Video Display Terminals Use (VDT) 

Pursuant to the National Institute of Safety and Health's recommendation, 

users should have fifteen (15) minute rest periods every two (2) hours of 

continuous use of a VDT. The workload should be varied to prevent the 

need to continuously view a VDT for two (2) hours. The break periods 


5/21/2009 1:57 PM 

23


5/21/2009 1:57 PM 

should be increased if the user is experiencing the signs of visual fatigue 

(headaches, blurred vision, eye strain). 

The design of the workstation and type of computer equipment can affect 

the quality of user comfort. Each City workstation should be evaluated 

for proper comfort, lighting, equipment design and conformance to OSHA 

standards. The Management Information Services Manager can be used 

as a technical resource to evaluate the workstations. 

9.14 Grievance Procedures 

9.14.1 Purpose of Grievance Procedure. 

The grievance procedure shall be used to resolve employee complaints 

regarding: 

a. An alleged violation of this Memorandum of 

Understanding. 

b. An alleged violation of the City's Personnel 

Ordinance or Rules. 

Specifically excluded from the grievance procedure are: 

a. Performance evaluations including 

deferral of merit increases. 

b. Written reprimands. 

c. Policy decision of the City Council 

d. Matters for which there is a separate appeal, 

including disciplinary action. 

9.14.2 Formal Grievance Procedure: 

The formal grievance procedure shall be used to resolve an 

employee's complaint not satisfactorily resolved by informal 

discussion. 

a. An employee (and/or his/her representative) shall 

have the right to present a formal grievance, in 

writing, within five (5) working days after the 

informal discussion of the grievance with the 

immediate supervisor or the immediate supervisor's 

superior. All formal grievances shall state the 

reasons for the complaint and the employee's 

suggested solution. 

b. The formal grievance shall be presented to the 

department head. The department head shall discuss 

the grievance with the employee and/or the 

24

employee's representative. Within ten (10) working 

days after receipt of the formal grievance, the 

department head shall render a written decision 

regarding its merits. If the department head's 

decision does not satisfactorily resolve the complaint, 

the employee may present the formal grievance to the 

City Manager. The grievance shall be considered 

resolved and no further review of the subject matter 

of the grievance shall be permitted under this rule 

when the employee does not seek further review of 

the grievance within five (5) working days after 

receipt of the decision of the department head. 

Failure of the department head to render a written 

decision on the grievance within five (5) working 

days constitutes a decision denying the grievance. 

c. Either the City or the employee may request that a 

grievance be submitted to mediation prior to 

submittal to the City Manager pursuant to Section D 

below. Mediation step shall be conducted utilizing 

the services of the State Mediation and Conciliation 

Service and shall result in no cost to either party. 

Mediators will confidentially attempt to assist the 

parties in the resulting grievance prior to 

advancement to the next step. The Mediator may, if 

appropriate, make recommendations to the parties in 

the attempts to resolve the grievance. 

d. When the employee presents a formal grievance to 

the City Manager or his/her designee, the City 

Manager or his/her designee shall discuss the 

grievance with the employee and the employee's 

representative. Within fifteen (15) days after meeting 

with the employee and the employee's representative, 

the City Manager or his/her designee shall render a 

written decision regarding its merits. The decision of 

the City Manager or his/her designee shall resolve the 

grievance and no further review of the subject matter 

of the grievance shall be permitted within the City's 

administrative process. 

e. The City shall not institute any reprisals against any 

employee or any representative resulting from the use 

of the grievance procedure. 

9.15 Discipline 

9.15.1 Written Reprimands 


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25


5/21/2009 1:57 PM 

An employee shall have the right to prepare a written response to the 

reprimand and have the response placed in his/her personnel file. An 

employee may appeal the supervisor's decision to issue a written reprimand 

to his/her department head by filing an appeal to the department head within 

five (5) working days of receipt of the reprimand. The Department Head's 

decision regarding the written reprimand shall be final. 

9.15.2 Voluntary Mediation prior to Disciplinary Hearing by the Personnel 

Commission 

The City and the employee/appellant may agree to submit a disciplinary 

matter to mediation prior to submittal to the Personnel Commission for 

hearing pursuant to City Personnel Rules. Mediation shall be conducted 

utilizing the services of the State Mediation and Conciliation Service and 

shall result in no cost to either party. Mediators will confidentially attempt 

to assist the parties in the resulting matter prior to advancement to the 

Personnel Commission. The Mediator may, if appropriate, make 

recommendations to the parties in the attempts to resolve the matter. 

9.16 Layoff Policy and Procedure 

9.16.1 Statement of Intent 

Whenever, in the judgment of the City Council, it becomes 

necessary to abolish any position or employment, the employee 

holding such position or employment may be laid off or demoted 

without disciplinary action and without the right of appeal. 

9.16.2 Notification 

Employees to be laid off shall be given at least fourteen (14) 

calendar days prior notice. 

9.16.3 Vacancy and Demotion 

Except as otherwise provided, wherever there is a reduction in the 

workforce, the appointing authority shall first demote to a vacancy, 

if any, in a lower class for which the employee who is the latest to 

be laid off in accordance with Section 6 is qualified. All persons so 

demoted shall have their names placed on the reemployment list. 

9.16.4 Employee Rights 

An employee affected by layoff shall have the right to displace an 

employee in the same department who has less seniority in a lower 

class in the same class series or in a lower classification in which the 

affected employee once had permanent status. For the purpose of 

this section and Section 5, seniority includes all periods of full-time 

service at or above the classification level the employee is 

"bumping" to. 

26

9.16.5 Seniority 

In order to retreat to a former or lower class, an employee must have 

more seniority than the least one of the incumbents of the retreat 

class and request displacement action in writing to the Personnel 

Director within five (5) working days of receipt of notice of layoff. 

Employees retreating to a lower or similar class shall be placed at 

the salary step representing the least loss of pay. In no case shall the 

salary be increased above that received in the class from which the 

employee was laid off. 

Employees retreating to a lower or similar class shall serve a 

probationary period in the new class unless they have previously 

successfully completed a probationary period in the class or a class 

in the class series. 

9.16.6 Employment Status 

In each class of position, employees shall be laid off according to 

employment status in the following order: volunteers, temporary, 

provisional, probationary, and regular. Temporary, provisional and 

probationary employees shall be laid off according to the needs of 

the service as determined by the appointing authority. 

In cases where there are two or more permanent employees in the 

class from which the layoff is to be made, such employees shall be 

laid off on the basis of the last evaluation rating in the class, 

provided that such rating has been on file at least sixty (60) days and 

no more than fourteen (14) months prior to layoff as follows: 

First, all employees having ratings of "unsatisfactory"; Second, all 

employees having ratings of "improvement needed"; Third, all 

employees having ratings of "satisfactory or above (which includes 

highly satisfactory and outstanding) by seniority". 

Employees within each category shall be laid off in inverse order of 

seniority in the classification where layoff is to occur. 

9.16.7 Re-employment List 

The names of persons laid off or demoted in accordance with these 

rules shall be entered upon a reemployment list. Lists from different 

departments or at different times for the same class of position shall 

be combined into a single list. Such list shall be used by every 


5/21/2009 1:57 PM 

27

appointing authority when a vacancy arises in the same or lower 

class of position before certification is made from an eligible list. 

9.16.8 Duration of Re-employment List 

9.17 Safety Committee 

Names of persons laid off shall be carried on a reemployment list for 

one (1) year, except that persons appointed to permanent positions 

of the same level as that which laid off, shall, upon such 

appointment, be dropped from the list. Persons who refuse 

reemployment shall be dropped from the list. Persons reemployed 

in a lower class, or on a temporary basis, shall be continued on the 

list for the higher position for the one (1) year. 

The City shall establish and maintain a safety committee in conformance 

with requirements of SB198. 

9.18 Compensation Survey 

The City will conduct a compensation survey on a reasonable number of 

benchmark positions to be completed prior to the commencement of 

negotiations for the successor MOU. 

The City and Union agree to hold a meeting prior to the commencement of 

this survey to discuss the methodology to be utilized. 

9.19 Temporary Hours 

Temporary hours will first be offered to current part-time workers. Parttime 

workers who have their hours increased more than thirty (30) days 

shall have their benefits and accruals increased accordingly. Affected 

departments will develop a sign-up system by October 1, 1998 for workers 

to indicate availability for additional hours. 

Should part-time position(s) be vacated, the City shall evaluate the 

possibility of making the position(s) full time. The City shall regularly 

evaluate the status of temporary positions. 

9.20 Probation 

Employees in this bargaining unit shall serve a probationary period of nine 

(9) months. The City may extend the probationary period for not more than 

three (3) additional months. 

10.0 FLEXIBLY STAFFED POSITIONS 

The following classifications are considered flexibly staff: Records Clerk I/II, 


5/21/2009 1:57 PM 

28

Office Assistant I/II, Accounting Assistant and Sr. Accounting Assistant. Upon 

completion of the probationary period and meeting the standards set forth in the 

applicable job description(s), employees shall be eligible for advancement to the II 

of a flexibly staffed classification. No commercial examination shall be required 

for advancement in a flexibly staffed position. 

11.0 RETIREMENT REOPENER 

The parties agree to meet and confer in Spring 2008 to discuss amending the City’s 

contract with CalPERS to provide the single highest year benefit. The provision of 

this benefit must be at no cost to the City. 

12.0 ENACTMENT 

The Agreement shall become effective upon ratification by the City Council of 

the City of Watsonville and shall remain in full force and effect until June 30, 

2010, or until a new agreement has been executed. 

SEIU, LOCAL 521 

CLERICAL TECHNICAL UNIT 

Date___________ 

Date___________ 

Date___________ 

Date___________ 

Date___________ 

_________________________________ 

_________________________________ 

_________________________________ 

_________________________________ 

_________________________________ 


Date_________________ 

_______________________________ 



5/21/2009 1:57 PM 

29

APPENDIX A

APPENDIX A

APPENDIX A


RESOLUTION NO. __________ (CM) 


CITY OF WATSONVILLE APPOINTING GAIL OLSON 

TO THE CITY OF WATSONVILLE LIBRARY BOARD 

[DISTRICT 7] 

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. 



FOLLOWS: 

1. That Council Member Bersamin hereby nominates Gail 

Olson for appointment to the Library Board (expires November 

2010), representing District 7. 

2. That the Council hereby approves such appointment. 

Reso No. (CM) 

Q:\COUNCIL\2009\052609\Library Board Appt.docx 

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AJS ______ CJP ______ 

1

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 Library Board. 

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

Reso No. (CM) 

Q:\COUNCIL\2009\052609\Library Board Appt.docx 

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2

ORDINANCE NO. 

(CM) 

AN ORDINANCE OF THE CITY COUNCIL OF THE 

CITY OF WATSONVILLE ADDING A NEW SECTION 

1-5.02 (PROHIBITIONS ON ELECTIONEERING) OF 

CHAPTER 5 (ELECTIONS) OF TITLE 1 (GENERAL 

PROVISIONS) OF THE WATSONVILLE MUNICIPAL 

CODE REGARDING ELECTIONEERING 

Amends Ordinance No. 1205-06 (CM) 

THE CITY COUNCIL OF THE CITY OF WATSONVILLE, 

CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: 

SECTION 1. ENACTMENT. 

Chapter 5 (Elections) of Title 1 (General Provisions) of the 

Watsonville Municipal Code is hereby amended by adding a new 

Section 1-5.02 to read as follows: 

Sec. 1-5.02 Prohibitions on electioneering. 

(a) 

Not withstanding subdivision (d) of Section 18370 and 

subdivision (c) of Section 18541 of the California Elections Code, 

no person shall do any of the acts set forth in subdivision (a) (1) 

through (3) of Section 18541 or subdivision (a) through (d) of 

Section 18370 of the Elections Code within 100 feet of the 

Ord No. (CM) 1 

Q:\COUNCIL\2009\052609\WMC 1-5.02 Ord.docx 

ri 5/18/2009 4:43:55 PM 

AJS ______ CJP ______

Rodriguez Street public and vehicular entrances to the Civic 

Plaza Parking Structure. 

SECTION 2. 

PUBLICATION. 

This ordinance shall be published in the Watsonville 

Register-Pajaronian in compliance with the provisions of the 

Charter of the City of Watsonville. 

SECTION 3. 

EFFECTIVE DATE. 

This ordinance shall be in force and take effect thirty (30) 

days after its final adoption. 

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

Ord No. (CM) 

Q:\COUNCIL\2009\052609\WMC 1-5.02 Ord.docx 

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2



Office of the City Manager 


DATE: May 18, 2009 

TO: 

FROM: 


Marcela Tavantzis, Assistant City Manager 

SUBJECT: Strategic Plan 2009-2011 


City Council 


It is recommended that the City Council adopt a Resolution approving 

the City of Watsonville Strategic Plan 2009-2011. 

DISCUSSION: 

The City Council held two Strategic Plan sessions in February of this 

year. During these sessions, the City Council & City staff conducted 

an Environmental Assessment of the community, identifying its 

strengths, challenges, opportunities and threats. Upon completion of 

this portion of the preparation of the Strategic Plan, the Council 

identified its stated goals for the upcoming two-year budget term. The 

goals identified by the Council as the guiding principles for the next two 

years are: 

Sustainable Economic Development 

Page 1 of 2

Community Resources 

Educational Attainment 

City Image 

Safe and Healthy Community 

Each City Department Head then presented to the City Council a list of 

the current projects and initiatives that each department is pursuing, 

mostly based on the previous Strategic Plan, and also suggested some 

new initiatives that may further the Council’s goals. The Council added 

some additional proposals for the coming year, and then voted to rank 

the projects and initiatives. 

The result of this ranking process, as well as other details of the 

process, are contained in the Strategic Plan 2009-2011 document. 

FINANCIAL IMPACT: There is no direct financial impact associated 

with the approval of this document. Implementation of the projects, 

programs and initiatives contained therein will be included in the 

upcoming budget or brought to City Council for approval outside of this 

process. 

ALTERNATIVES: The City Council could suggest changes to the 

document. 

ATTACHMENTS: None. 


Page 2 of 2 

Marcela Tavantzis 5/18/2009 3:54:45 PM 

p/Marcela/strategic plan/2009-2011/final document/ staff report for approval 2009




CITY OF WATSONVILLE APPROVING THE CITY OF 

WATSONVILLE STRATEGIC PLAN 2009-2011 

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY 

OF WATSONVILLE, CALIFORNIA, AS FOLLOWS: 

That the City of Watsonville Strategic Plan 2009-2011, a copy 

of which is attached hereto and incorporated herein by this 

reference, is hereby approved. 

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

Reso No. (CM) 

Q:\COUNCIL\2009\052609\Strategic Plan 2009.docx 

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AJS ______ CJP ______ ACM ______ 

1

EXECUTIVE SUMMARY 2009 - 2011 

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 February 3 rd and 17 th , 

2009, 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 identifies and ranks 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. 

Council Goals. At their February 2009 goal-setting study session the City Council reviewed 

several of the main issues affecting the City of Watsonville and reached consensus on five goals. 

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 

Community Resources 

Educational Attainment, and 

City Image.

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 completion and implementation of the Manabe/Ow Specific Plan, the 

accompanying Development Agreement and Master Environmental Impact Report. 

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. 

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 Together 

in Peace 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 initiates several activities, including a downtown mural 

program, and sidewalk cleaning. 

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 

2009-2011 

Goal I: Sustainable Economic Development 

Objective 1: Downtown Revitalization 

1. Storefront (Façade) Improvement Program 

2. Continuation of Downtown Streetscape Improvement Plan 

3. Development of temporary downtown greenspace of vacant private property 

4. Continued implementation of Stoesser Alley Master Plan 

Objective 2: Job Creation & Workforce Skill Development 

5. Marketing of Enterprise Zone 

6. Expansion of Enterprise Zone 

7. Work with Cabrillo College and Vocational Training 

8. Partnership with UCSC-Economic Development of Green Job/Agriculture Recruitment 

and Partnership 

9. Guaranteed Loan Program for businesses 

10. Evaluate Lost Retail Sales and potential business gaps 

11. Business Outreach Program 

12. Develop Data & Resources for Industrial Property/Business 

13. Evaluate Economic Gardening Program 

Objective 3: Better Use of Underutilized Land & Other Development Opportunities for 

Industrial and Commercial Development 

14. Manabe Ow Specific Plan, Master EIR and Development Agreement 

15. Construction of Auto Center Drive Improvements 

16. Highway 152 Interchange 

17. Manabe Ow Wetlands Restoration – Final Phase 

1. Secure Our Schools 

2. Safe Routes to School 

3. Vocational Training Facility 

Goal II: Educational Attainment

Goal III: Community Resources 

Objective 1: Community Infrastructure 

1. Construction of Auto Center Drive Improvements 

2. Slough Trails Master Plan Implementation 

3. Manabe Ow Wetlands Restoration – Final Phase 

4. Watsonville Slough Restoration 

5. Pájaro River Flood Control 

6. Neighborhood District Meetings 

7. Development & Maintenance of City Website 

8. Production of PCS Recreation Guide 

9. Franich Park Development Phase II-A – Construction 

10. Update Park Master Plan and Conduct Community Wide Survey 

11. Callaghan Park Renovation 

12. Property Tax Allocation Audit 

13. Sales Tax Allocation Audit 

14. Transient Occupancy Tax Compliance Audit 

15. Channel 70 Programming 

16. Measure U Implementation 

17. City-wide Newsletter 

18. City Manager E-Newsletter Wingspan 

19. City Disaster Response Plan 

20. City Staff Training for Disaster Response 

21. Atkinson Specific Plan 

22. Update General Plan and EIR pending resolution of litigation 

23. General Plan Implementation (zoning revisions) 

24. Housing Element 2007-2014 

25. Historic Ordinance Revisions 

26. Airport Master Plan 

27. Airport Capital Improvements (Design & Construct) 

28. Information Systems Design & Upgrade 

29. Neighborhood Development Program at Carey/Davis 

30. 2010 Census Count 

31. AB 32 Greenhouse Gas reductions 

32. Solar Power Project 

33. Armory Acquisition 

34. Implement GASB 45 Accounting Regulation 

35. Complete Information System Hardware Upgrades 

36. Performance Measurement Budget Reporting 

37. Green Building Initiatives 

38. Implementation of Foreclosure Ordinance 

39. Subdivision Ordinance Update 

40. Agricultural Workers History Project 

41. Wireless Local Area Network

Objective 2: Streets & Traffic 

42. Highway 1 Interchange 

43. Neighborhood Traffic Program 

44. Ohlone/Beach Street Signal 

45. Pavement Maintenance Project 

46. Freedom Blvd. – High to Lincoln- Reconstruction 

47. Stoesser Promenade Implementation 

48. Pájaro Valley High School Traffic 

49. Freedom & Main Roundabout 

50. Traffic Roundabouts for Improved Traffic Flow 

Objective 3: Utilities 

51. Water Recycling Facility 

52. Well 5 Replacement 

53. Water Main Replacements 

54. Integrated Waste Task Force 

55. TMDL Program for Drainage to Surface Water 

56. SCADA System Upgrade 

57. Fine Bubble Diffuser for Energy Savings 

58. Fish Ladder and Intake Modification 

59. Solids Handling Upgrade 

60. Landfill Expansion Permit 

61. Recycling Audits 

62. Sewer System Maintenance Management Plan 

63. Waste Water Treatment Plan NPDES Permit Renewal 

64. Water Rate Study 

65. Wastewater Rate Study 

66. Solid Waste Rate Study 

67. Phase II Storm Water Permit 

68. Implement Phase II Storm Water Program 

69. Seaview Ranch Well 

70. Corralitos Water Filter Plant Upgrade 

71. Zone 2 Reservoir 

72. Airport, Amesti Reservoir Improvements 

73. Influent Line Replacement 

74. Materials recovery Facility Modifications 

75. Landfill Waste Audit 

76. Expansion of Commercial Recycling 

77. Implement New State Recycling Mandates

Goal IV: City Image 

1. California Agricultural Workers Historic Center 

2. Slough Trails Master Plan Implementation 

3. Home Improvement Grants 

4. Stoesser Promenade Implementation 

5. Implementation of Foreclosure Ordinance 

6. Volunteer Coordination 

7. Historic Ordinance Revisions 

8. Historic Label Mural Project 

Goal V: Safe & Healthy Community 

Objective 1: Police Department – Gang Prevention & Suppression 

1. Together in Peace Grant – Gang Prevention & Intervention 

2. Gang Violence Suppression (JAG) 

3. Santa Cruz County Narcotics Enforcement Team 

4. Santa Cruz County Auto Theft Recovery & Enforcement 

Objective 2: Work With the Community & School District 

5. “CPR” Crime Prevention Response (i.e. Neighborhood Watch, Safety Academy, 

National Night Out) 

6. Bilingual Residents’ Academy 

7. Truancy Abatement – Crime Suppression 

8. School Resource Officer 

9. Community Policing 

10. Juvenile Diversion Program 

11. Police Activities League (PAL) 

Objective 3: Healthy Community 

12. Safe Schools Healthy Students 

13. Neighborhood Meetings 

14. BASTA 

Objective 4: Fire Department 

15. Cadet Program: Youth and Careers 

16. Facilities Master Plan 

17. Capital Improvements Plan 

18. Telestaff Time Recording/Reports 

Objective 5: Crime Prevention & Law Enforcement 

18. Homeland Security – Interoperability 

19. Develop & Implement New False Alarm Program 

20. Narrowbanding 

21. Automated Fingerprint Information System-bar Coding & Thumbprints in Field 

22. Crisis Negotiation Response 

23. Community Post Incident Team

Proposed New Projects and Initiatives 

Scores and Rankings

APPENDIX

Environmental Analysis 

Strengths 

1. Staff 

2. High level of public trust 

3. Staff has “just do it” mentality “Get it done” 

4. Energy of youth 

5. Civic Plaza & Downtown 

6. Community support / volunteerism 

7. City’s lack of bureaucracy / thus ability of be responsive 

8. Cabrillo College Expansion (technical education) 

9. Resiliency 

10. Capacity for growth in downtown/parking availability 

11. Collaborations: Monterey Bay Birding Festival/Trails 

12. Eligibility for federal funds/grants due to demographics 

13. Strong community identity 

14. New federal government proposals 

15. Location (highway, railroad, airport, Bay Area location) 

16. Compact (especially for alternative transportation) 

17. Agriculture’s role as primary industry –no downturn 

18. Multiple transportation modes 

19. Labor force –fields 

20. Vista Montana Model Subdivision –nation wide. 

21. Strong utilities & infrastructure capacity 

22. Work w/school district to share facilities 

23. Rich cultural traditions 

24. Business friendly agency –easy access 

25. Business growth potential 

26. Full service city 

27. Low utility rates 

28. UCSC proximity

Challenges 

1. Money 

2. Energy of the youth 

3. Limited staff 

4. Unknown resources/costs 

5. Other jurisdictions’ budgets affect /impact on us 

6. Education (under attainment) 

7. High unemployment rates 

8. Intergovernmental relations 

9. Jobs in our community 

10. Housing crisis impacting neighborhoods 

11. Unfunded mandates 

12. Decreasing wealth (less disposable income) 

13. High cost of living 

14. Increasing crime 

15. Different identities within identities 

16. Negative perceptions of Watsonville 

17. Tax structure (realigning our retail/sales tax) 

18. Vacant houses 

19. Water crisis 

20. Credit crisis 

21. Lack of adequate flood protection 

22. Lack of telecommunications infrastructure 

23. Traffic congestion

Opportunities 

1. Economic stimulus grants - “poverty markers“ 

2. Green building opportunities 

3. “Catch the wave” of new economy (be ready) 

4. New jobs “Green” and how to tap into that 

5. Manabe-Ow Business Park as employment/some training ctr. 

6. UCSC expansion “location” 

7. Developing materials locally to reduce our own Carbon footprint 

8. Stem Cell research 

9. Pajaro Train Station 

10. More intergovernmental collaboration 

11. Non-Profits and Community organizations operating locally 

12. Pajaro Valley housing cost of living still relatively lower “regionally speaking” 

13. Steady school enrollment #’s 

14. Beautiful downtown 

15. Potential as local vacation spot for lower cost vacations 

16. Rebranding- City Logo 

17. Landfill diversion opportunities & working with County 

18. Emergent Technologies-doing more with less 

19. Some good companies that will stay 

20. Grant funding for water projects 

21. Closure of marginal after school/will create market for other 

22. New crops for emerging markets 

23. Develop chamber marketing program to promote Watsonville 

24. Redmond/Hirara House-divert traffic from Highway 1 

25. Reach more people through technology 

26. Inventory of vacant industrial buildings 

27. Mello Center/Arts 

28. Culturally rich community 

29. Solar Project at the landfill 

30. Expand solar project 

31. Library-pursue grants and partner with education 

32. Library-expand lecture series 

33. Expand City’s Volunteer Programs 

34. Farmer’s Market –Continue to expand & Offer opportunities to other businesses to 

benefit 

35. Health & Wellness-Market more healthy foods

Threats 

1. State borrowing funds from cities 

2. Increase in violence across the state 

3. Communication with public (newspapers) 

4. Succession planning for City 

5. Maintaining staffing levels (safety/budget) 

6. Drug addiction (youth) 

7. Lack of fundraising for non-profits 

8. Domestic car companies / local dealerships 

9. Cuts in funding to school district 

10. Landfill reaching capacity 

11. Downtown issues (alcohol, drugs, pan handling) 

12. Services for a growing population 

13. After school/youth programs going away 

14. Lack of “night life” 

15. Night life issues-increase demand for public safety svcs 

16. County development adjacent to Watsonville impacting services 

17. Long-term resetting of financial resources 

18. Deflation 

19. Civil unrest due to economy 

20. Bond market & credits market


DATE: May 21, 2009 


City Manager’s Office 


TO: 

FROM: 

SUBJECT: 


Watsonville City Council Subcommittee for 

Social/Community Service Grants FY 2009/10 

Mayor Antonio Rivas 

Council Member Kimberly Petersen 

Council Member Manuel Bersamin 

Social Service and Community Service Grants 

FY 2009/10 


City Council 


It is recommended that the City Council accept by motion the 

Watsonville City Council Subcommittee report for the Social Service 

and Community Service Grants program for FY 2009/10. 

DISCUSSION: 

Background. The Watsonville City Council Subcommittee 

(“Subcommittee”) is responsible for reviewing and recommending 

funding to applicants. This is the first year of a two-year budget 

process; therefore, new agencies and programs were encouraged to 

submit applications. During the first year, City Council normally awards 

funding after consideration of the San Francisco-Oakland-San Jose 

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area Consumer Price Index (CPI). The April 2009 CPI index is 0.8%. 

This is practically a 0% increase. Normally upon consideration of a 

CPI, the amount is distributed between new and existing agencies. 

The Subcommittee reviews applications and makes a recommendation 

to the City Council based on City Council’s priorities. Three Council 

Members participate in the Subcommittee. During the second year, 

only applications from currently funded agencies are accepted and the 

City considers CPI adjustments. 

This proposal by the Subcommittee (Attachment 1), and any changes 

discussed by the City Council at their May 26, 2009 meeting, will be 

incorporated into a resolution for City Council approval on or about 

June 23, 2009. 

Social Service and Community Service Grants. 

The Subcommittee reviewed all funding requests received by the City 

of Watsonville for FY 2009/10. Given the current state of the economy 

and declining revenues from sales and property taxes, the City’s 

General Fund is experiencing a projected shortfall of $4.5 million 

dollars. Uncertainty with the State of California’s budgetary deficit 

could lead to additional cuts to the City of Watsonville’s General Fund. 

In order to partially address this shortfall, the Subcommittee proposes 

a 20% net reduction to be applied evenly to all agencies and programs 

from the FY 2008-2009 funding level. 

In addition, the City has reduced its budget by freezing vacant 

positions and cutting operating expenses severely. City employees 

agreed to a citywide temporary layoff in the current fiscal year which 

resulted in an approximate 5% reduction in pay. The great majority of 

City employees have already agreed to a 10% reduction in 

compensation for next fiscal year. Therefore, the 20% reduction for 

these grant programs is equivalent to reductions which have been 

made in other City programs and personnel costs. 

Page 2 of 3 

MEM and LM 5/21/2009 8:50:59 AM 


Review of Social Service Guidelines. 

The Subcommittee is interested in reviewing the guidelines currently 

used by the City for the social service grants process. It is the intent of 

the Subcommittee to develop a proposal for review by the City Council, 

community members and social service agencies. The Subcommittee 

strongly encourages the Human Care Alliance and its partners to 

develop recommendations the Subcommittee can use in reviewing the 

current process. 

STRATEGIC PLAN: 

The allocations are consistent with three of the stated City Council 

Goals. The programs funded support educational attainment by 

supporting pre-school children and programs, as well as programming 

for teenagers, jobs/economic developments (job training programs) 

and infrastructure (network of family support service including senior 

services). 


The proposed funding for the Social and Community Service grants in 

the amount of $276,564 will be included in the budget for FY 2009/10. 

The proposed 20% reduction will save the City's General Fund 

$69,141. 

ALTERNATIVES: 

The Watsonville City Council may propose a different distribution of 

funds. 

ATTACHMENTS: 

Attachment 1: Social and Community Service Grants Fiscal Year 

2009/10. 


Page 3 of 3 

MEM and LM 5/21/2009 8:50:59 AM 


SOCIAL AND COMMUNITY SERVICE GRANTS FY 2009-2010 

Agency 

Program 

FY 08/09 FY 09/10 Recommended 

Allocation Requested 20% Decrease 

Advocacy, Inc. Seniors LTC Ombudsman $ 1,299 $ 1,299 $ 1,039 

Association of Watsonville Area Seniors Seniors Social Services for Seniors $ 25,974 $ 25,972 $ 20,779 

Big Brothers Big Sisters of Santa Cruz County Youth Mentoring Services $ 2,079 $ 2,079 $ 1,663 

Cabrillo College Stroke Center Seniors Stroke and Disability Center $ 4,568 $ 4,568 $ 3,654 

California Grey Bears Seniors Operation Brown Bag $ 3,078 $ 3,078 $ 2,462 

California Rural Legal Assistance All Legal Assistance $ 7,637 $ 7,637 $ 6,110 

CASA of Santa Cruz County Youth Children advocacy $ 3,942 $ 3,942 $ 3,154 

Central Coast Center for Independent Living Adults Independent Living $ 2,726 $ 2,726 $ 2,181 

Community Action Board of Santa Cruz County All Santa Cruz County Immigration Project $ 6,665 $ 6,665 $ 5,332 

Community Action Board of Santa Cruz County All The Shelter Project $ 12,338 $ 12,338 $ 9,870 

Community Action Board of Santa Cruz County Adults Women Ventures Project $ 4,027 $ 4,027 $ 3,222 

Community Bridges Youth Child Development Division (CDD) $ 6,014 $ 6,014 $ 4,811 

Community Bridges Seniors CTSA: Lift Line (CTSA) $ 3,241 $ 3,241 $ 2,593 

Community Bridges All La Manzana Community Resources (LMCR) $ 15,348 $ 15,348 $ 12,278 

Community Bridges Seniors MOW: Congregate # $ 2,368 $ 2,368 $ 1,894 

Community Bridges Seniors MOW: Home Delivered # $ 4,032 $ 4,032 $ 3,226 

Dientes Community Dental Care Youth Dental Services $ 5,536 $ 5,724 

$ 

4,429 

Family Service Agency of the Central Coast All Counseling - South Co. $ 22,149 $ 22,149 $ 17,719 

Family Service Agency of the Central Coast Seniors Senior Outreach $ 4,155 $ 4,155 $ 3,324 

Family Service Agency of the Central Coast All Suicide Prevention $ 1,007 $ 1,007 $ 

806 

Loaves and Fishes All Hot Lunch $ 3,360 $ 4,460 $ 2,688 

Pajaro Valley Children's Center Youth Pajaro Valley Children $ 19,916 $ 20,916 $ 15,933 

Pajaro Valley Community Health Trust All Diabetes Health Ctr $ 1,223 $ 1,223 $ 

978 

Pajaro Valley Shelter Services All Emergency Shelter $ 1,564 $ 1,564 $ 1,251 

Parents Center All Counseling $ 3,791 $ 3,791 $ 3,033 

Planned Parenthood Mar Monte All Watsonville $ 4,027 $ 4,027 $ 3,222 

Salud Para La Gente All Salud Para La Gente $ 17,151 $ 17,151 $ 13,721 

Salvation Army All Homeless Shelter $ 8,574 $ 10,924 $ 6,859 

Salvation Army All Social Service $ 3,589 $ 3,589 $ 2,871 

Santa Cruz AIDS Project All Support services $ 1,559 $ 1,559 $ 1,247 

Santa Cruz Community Counseling Center Adults Community Recovery Services/Si Se Puede $ 8,838 $ 8,838 $ 7,070 

Santa Cruz Community Counseling Center Youth Youth Services/Pajaritos $ 12,063 $ 12,063 $ 9,650 

Santa Cruz Community Counseling Center Youth Youth Services/Youth and Family $ 10,824 $ 10,824 $ 8,659 

Santa Cruz County Office of Education/CDRC Youth Child Care Switchboard $ 1,308 $ 1,308 $ 1,046 

Santa Cruz County Red Cross All Disaster Relief $ 1,440 $ 1,440 $ 1,152 

Santa Cruz County Red Cross All Disaster Services $ 3,489 $ 3,489 $ 2,791 

Second Harvest Food Bank All Food Distribution $ 11,363 $ 11,363 $ 9,090 

Senior Citizens Legal Services Seniors Legal Assistance $ 2,079 $ 2,079 $ 1,663 

Senior Network Services Seniors Senior Services $ 7,272 $ 7,272 

$ 

5,818 

Seniors Council Seniors AAA $ 1,039 $ 1,039 $ 

831

SOCIAL AND COMMUNITY SERVICE GRANTS FY 2009-2010 

Agency 

Program 



Seniors Council Seniors Project SCOUT $ 2,772 $ 2,772 $ 2,218 

Survivors Healing Center All Survivors Healing Center $ 1,920 $ 2,014 $ 1,536 

Volunteer Centers of Santa Cruz County All Watsonville Center $ 5,456 $ 5,456 $ 4,365 

Watsonville Family YMCA Youth Youth and Family $ 2,721 $ 3,821 $ 2,177 

Watsonville Law Center All Watsonville Law Center $ 2,615 $ 3,000 $ 2,092 

Women's Crisis Support - Defensa de Mujeres Adults Domestic Violence - City of Watsonville $ 22,149 $ 22,149 $ 17,719 

YWCA # Youth Childcare $ 14,400 $ 16,320 $ 11,520 

YWCA # Youth YW-Teens $ 1,920 $ 1,920 $ 1,536 

Total $ 316,605 $ 324,740 $ 253,284 

Agencies Requesting Additional Funding 

Proposed Requested Funding Use 

Add'l 

funding 

shown in 

Salvation Army - Homesless Shelter All Staff increase $ 2,350 

Watsonville Family YMCA Youth Support operating cost $ 1,000 

Loaves and Fishes All Increase supplies $ 1,000 

Agency 

Program 



Cultural Council of Santa Cruz County All Advocate for ongoing support of the Arts $ 11,662 $ 11,662 $ 9,330 

Pajaro Valley Arts Council All Art Exhibits $ 1,594 $ 3,600 $ 1,275 

Pajaro Valley Historical All Art Exhibits: Preserve local history $ 9,269 $ 10,000 $ 7,415 

Sister City Youth $ 2,024 $ 2,024 $ 1,619 

Watsonville Band All Local marching band $ 4,551 $ 5,000 $ 3,641 

Total $ 29,100 $ 32,286 $ 23,280 

Social Service Agencies $ 316,605 $ 324,740 $253,284 

Community Service Agencies $ 29,100 $ 32,286 $ 23,280 

Total $ 345,705 $ 357,026 $276,564 

ATTACHMENT 1


Finance Department 


DATE: May 21, 2009 

TO: 

FROM: 

SUBJECT: 


Marc Pimentel, Administrative Services Director 

Bill Hays, CPA, Assistant Finance Officer 

RECEIVE A REPORT ON STATUS OF THE 

GENERAL FUND 2009/10 BUDGET BALANCING 

PLAN AND APPROVE VOLUNTARY TIME-OFF 

AND RETIREE INCENTIVE PLANS 


City Council 


That the City Council receives this report outlining the status of the 

2009/10 General Fund operating deficit and receive the proposed 

plan to balance the 2009/10 General Fund budget. In addition, that 

the City Council approve an employee voluntary time-off and 

employee retiree incentive plans. 

DISCUSSION: 

Many of the General Fund’s core programs and operations are in 

jeopardy due to the increasing deficit now projected at a minimum of 

$4.5 million (12.4% of General Fund operations). With the 

assistance of the City Council, the City’s employees and department 

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staff, a sound but painful plan to eliminate this deficit has been 

developed and is presented within this report. 

Employee reduction incentive plans. 

The table below outlines 2 voluntary programs that, at a very 

marginal cost, can provide significant employment cost savings. 

These savings would be applied towards eligible positions still 

recommended for layoff. 

Program 

Name 

Voluntary 

Time Off 

Overview 

Allow any permanent/regular 

City employee to request to 

voluntarily reduce their work 

week or take leave without pay. 

Employee would be able to 

maintain their pre-existing levels 

of leave accruals, seniority and 

medical benefits. 

There would be no cost to this 

proposal as benefit levels remain 

at the employee’s current level 

(i.e., no increase). 

City will get dollar for dollar 

savings from every hour 

voluntarily given up without pay. 

Opt out provision for those 

determined to have undue 

financial hardship due to 

unforeseen circumstances. 

Limits 

Subject 

to 

departmental and 

management 

approval. 

Certain positions due 

to workload or 

service demands 

may not be allowed 

to reduce their work 

hours. 

Plan and benefit 

extension would 

expire July 9, 2010. 

Page 2 of 20 



Retiree 

Incentive 

Plan 

Allow any permanent/regular 

City employee to request a full 

retirement and maintain their 

preexisting medical plan 

coverage at their preexisting 

employee premium levels for 

24 months following retirement. 

Employees would need to 

express interest by May 27, 

2009 (plan concept has 

already been distributed to all 

employees, agree by June 19, 

2009 that they are going to 

retire and to select a retirement 

date on or before December 

31, 2009. 

Estimated cost would be appx. 

$5k per employee in year 1 

and increase to $10k per 

employee in year 2. 

All costs would be offset by 

salary savings from leaving the 

position vacant and unfunded. 

Subject 

departmental 

management 

approval. 

to 

and 

Positions that would 

need to be replaced 

would be unavailable 

as any marginal 

savings from 

temporary vacancy or 

filling at a lower pay 

level would not offset 

the 2-year cost. 

Page 3 of 20 



Proposed Budget Plan in Summary 

Table 1 below compares the General Fund’s financial position for 

2009/2010 before and after considering this proposed budget plan. 

Data is preliminary and 

subject to change up 

through June 23, 2009. 

GENERAL FUND 

PROPOSED BUDGET COMPARISON 

FOR FISCAL YEAR 2009-10 

Initial 

Projection (1) 

Proposed 

Variance 

Budget (2) Amount % 

REVENUES 

TAXES: 

PROPERTY $ 5,132,000 $ 5,132,000 $ - - 

SALES 5,653,000 5,516,000 (137,000) (2.4%) 

SALES- Special 1/4-cent 1,274,000 1,169,000 (105,000) (8.2%) 

UTILITY 3,114,000 3,114,000 - - 

MOTOR VEHICLE 3,601,000 3,601,000 - - 

OTHER 631,000 631,000 - - 

Sub-total Taxes 19,405,000 19,163,000 (242,000) (1.2%) 

FINES, FEES & CHARGES: 

DEVELOPMENT 600,000 677,000 77,000 12.8% 

PUBLIC SAFETY 1,986,000 2,328,000 342,000 17.2% 

COMMUNITY SERVICES 542,000 582,000 40,000 7.4% 

COST ALLOCATION CHARGE OUTS 1,731,000 2,358,000 627,000 36.2% 

OTHER 2,939,000 2,893,000 (46,000) (1.6%) 

Sub-total Fines, Fees & Charges 7,798,000 8,838,000 1,040,000 13.3% 

USE OF MONEY & PROPERTY 1,118,000 873,000 (245,000) (21.9%) 

OTHER REVENUES (162,000) 336,100 498,100 (307.5%) 

FRANCHISE FEES 1,220,000 1,220,000 - - 

TOTAL REVENUES $ 29,379,000 $ 30,430,100 $ 1,051,100 3.6% 

EXPENDITURES 

GENERAL GOVERNMENT $ 1,914,000 $ 1,707,000 $ (207,000) (10.8%) 

COMMUNITY DEVELOPMENT 1,653,000 1,344,000 (309,000) (18.7%) 

FINANCE 2,414,000 2,095,000 (319,000) (13.2%) 

NON DEPARTMENTAL 141,000 141,000 - - 

SOCIAL/COMMUNITY SERVICES 372,000 313,000 (59,000) (15.9%) 

POLICE 15,082,000 13,960,000 (1,122,000) (7.4%) 

FIRE 6,220,000 5,634,000 (586,000) (9.4%) 

LIBRARY 543,000 542,000 (1,000) (0.2%) 

PARKS AND COM. SERVICES 3,555,000 3,312,000 (243,000) (6.8%) 

PUBLIC WORKS 4,784,400 3,803,000 (981,400) (20.5%) 

Sub-total Operating Expenditures 36,678,400 32,851,000 (3,827,400) (10.4%) 

CAPITAL IMPROVEMENT PROJECTS 336,000 336,000 - - 

TOTAL EXPENDITURES 37,014,400 33,187,000 (3,827,400) (10.3%) 

REVENUES OVER (UNDER) EXPENDITURES (7,635,400) (2,756,900) 4,878,500 

OPERATING TRANSFERS IN 3,063,000 2,755,000 (308,000) (10.1%) 

NET REVENUE (EXPENDITURES) $ (4,572,400) $ (1,900) $ 4,570,500 

Percent of Variance compared to adopted budget -12.35% 

(1) Based on data contained in the Feb 10, 2009 Mid-Year Report with significant updates (Property & Sales taxes) 

(2) Amounts based on the various components that represent Staff's proposed budget plan for May 26, 2009 

Page 4 of 20 



Service reductions. 

There are no easy solutions to overcome the size of the $4.5 million 

projected General Fund deficit for the year starting July 1, 2009. It 

must result in the reduction of many of the services the Watsonville 

community has come to depend on and expect. 

Under the City Council’s direction, management built a strategy to 

balance the 2009-10 budget through the following major objectives: 

Meet with and agree to employee compensation concessions 

Develop line item reductions where ever possible, including 

contractual services 

Develop service reductions starting with added value 

programming and services and ending with core and essential 

services 

Consider and propose resource enhancement options 

Evaluate new opportunities to change how services are 

delivered 

Employee group agreements. At the timing of this report, the City 

has reached agreements with all but one of its bargaining units on 

contract concessions (agreements were presented for approval 

earlier in this May 26, 2009 meeting). The last unit, Fire, is still in 

negotiations. Should this group remain unresolved much longer, the 

City will be forced to implement an alternate operating reduction 

proposal as part of the General Fund budget hearing scheduled for 

June 2, 2009. This plan would include upwards of 5 fire department 

layoffs. 

The agreements reached with the other groups have been built into 

the table 1 plan shown and have resulted in saving well over 40 

permanent positions in the City, leaving only 8 permanent positions 

as still tentative layoffs and restoring many programs and services. 

Page 5 of 20 



The biggest component of these agreements is a 10% reduction of 

the work week for the vast majority of city employees and the 

implementation of a work week consisting of 4- 9 hour days. 

Further reductions also include a 14% compensation reduction 

agreed to by the City Manager, 13% agreed to by the City Clerk and 

7.5% in reductions agreed to by the Police Officers Association and 

Police Mid-Management employee units. 

Department Budget reduction plans. Since February, all City 

departments have presented numerous reduction scenarios, each 

with multiple versions. The initial direction provided to departments 

was to NOT assume any employee compensation concessions. 

Any concessions were out of individual department control and all 

subject to a parallel labor negotiation process. 

These numerous budget scenarios contain different levels in order 

to reach the targeted savings goals. Although very close at this 

time, these proposals are still not finalized and contingent upon 

factors outside of management’s control (fire negotiations, changes 

in revenue assumptions to the extent that new information is 

available, State declared borrowing or additional take-aways, 

unanticipated cost changes, Federal Stimulus awards pending, etc). 

Some of the more significant proposed changes include: 

Closure of most City operations on Fridays starting July 17, 

2009 through July 9, 2010 

o No changes to essential services like Police, Garbage 

Pickup, Water labs. The impact on the Fire Department 

budget is still not finalized. (see Table 2 for details) 

o Library’s full day closure to occur on Saturday for the Main 

Street branch and on Monday for Freedom branch 

• Freedom hours would be extended on Saturday from 

1 until 5 pm to 10am until 6pm. 

Page 6 of 20 



o Parks & Community Service programming will have 

alternate closure dates depending on the community 

center and programs involved. 

Closure of City operations for the entire weeks of Thanksgiving, 

Christmas and New Years. 

o This results in 2 additional closures days in each week. 

8 General Fund positions proposed for layoff based on current 

financial projections 

o 4 positions eliminated due to loss of funding and/or 

operational efficiencies 

o 4 positions proposed for reduction from full-time to parttime 

status. 

Reducing City Council travel and operating accounts by 15% 

Unfunding computer replacement for the General Fund 

Further reduction in city wide employee training programs to 

minimum, required programs 

Leaving all vacant positions unfunded across the General Fund 

(see Table 3 for details) 

Reduction in Community & Social grant funding by 20% 

Various reductions in recreational drop-in programs as outlined 

in Table 4 

o These are in addition to Friday closures 

Reduction in the number of City Council Member district 

meetings 

Reduction in Police Athletics League (PAL) funding 

Reduction in Animal Service Authority funding of 10% 

Reduction in 911 center Joint Powers Authority funding of 10% 

Reduction in Library’s part-time support hours 

Reduce building maintenance and cleaning services 

Reduced city-wide parks and maintenance 

Eliminate the Holiday in Lights event 

Hope Services reduced by 20% (from 5 to 4 days/week) 

Page 7 of 20 



Table 2 details those essential services that during the Friday 

closure and the three week closures (Thanksgiving, Christmas & 

New Years) would remain and those that would be reduced or 

closed. 

Essential Services: Services to remain 

and those that will be reduced or closed 

Table 2 

Program/ 

Service 

On duty status 

Major 

Reductions 

Major closures 

Police 

Normal police 

presence & 

work schedules 

Courts 

documents 

support 

All public front counter 

requests (vehicle 

release, police reports, 

etc) 

Fire 

Normal shift 

schedules 

Fire Prevention, 

Training, public nonemergency 

requests 

Airport 

Fuel and pilot 

support 

General public 

support 

Driving Range 

Garbage 

Water 

Normal trash 

pickup 

schedules 

Monitoring and 

urgent 

customer 

services 

Project 

development 

Water turn-on 

and off; 

Project 

Development 

Waste & Recycle dropoff 

center closed 

Sunday. 

Container upgrades or 

other changes 

unavailable on Fridays 

Billing account changes 

Sewer 

Monitoring 

services 

Project 

development 

Routine maintenance 

Page 8 of 20 



Table 3 details the General Fund positions that are currently vacant 

and that will continue to remain unfunded. 

Table 3 

General Fund positions unfunded # 

Administrative Analyst 1 

Administrative Intern 1 

Assistant Parks & Community Services Director 1 

Assistant Planner 1 

Community Development Director 1 

Custodian 1 

Firefighters 4 

Deputy Police Chief (under filled) 1 

Parking Enforcement Officer 1 

Police Officer (Subject to COPS grant acceptance) 6 

Police Service Specialist 1 

Recreation Leader III (adult sports) 1 

TOTAL 20 

Table 4 summarizes the still tentative and subject to change Parks & 

Community Services proposed facility drop-in program reductions. 

Page 9 of 20 



This preliminary table does not reflect the mandated Friday closures 

for all City non-essential operations. 

Proposed times are preliminary and subject 

to change up through June 23, 2009. 

Facility Current Hours Proposed New Hours 

TABLE 4 

Weekly 

hours 

Callaghan 

Marinovich - School 

Year 

Mon–Fri (3:00-6:00) 

Sat (11:00-4:00) 

Mon–Fri (3:00-7:00) 

Mon–Fri (3:00-6:00) 

No change 

No 

change 

Marinovich Summer 

(6/15 - 8/11) 

Ramsay Park 

River Park- Summer 

(6/15 - 8/11) 

Mon–Fri (12:00-6:00) 

Sat (11:00–4:00) 

Closed for Summer 

Mon–Fri (3:00-8:00) 

Sat (11:00 -4:00) 

Mon-Fri (3:00-8:00) 

Tue & Thur (12:30-5:30) Closed for Summer 

GH & WR Youth 

Center 

Enterprise Computer 

Lab 

Marinovich Computer 

Lab 

Muzzio - School year 

Mon–Fri (3:00-8:00) 

Sat (4:00-9:00) 

Mon–Fri (3:00-8:00) 

Sat (12:00-4:00) 

Mon–Fri (2:00-6:00) 

Sat (12:00-4:00) 

Mon & Wed (3:00 – 

6:00) 

Tue–Fri (4:00-8:00) 

Sat (4:00-8:00) 

 

Mon–Fri (3:00-7:00) 

Mon–Fri (2:00-5:00) 

Closed for School 

Year 

 

Muzzio - Summer 

(6/15 – 8/11) 

Mon – Fri (12:30 – 5:30) Closed for Summer 

Status of General Fund cash balances. The General Fund is 

solvent but needs to stay operationally balanced to remain so. 

Unlike the State of California, the City has not allowed itself to 

Page 10 of 20 



exhaust its cash resources. However, to remain operational, the 

City must balance projected resources with projected expenses for 

the coming year. The City continually strives to ensure that ongoing 

operations are funded through on-going resources. 

Furthermore, additional effort is spent to ensure short-term 

resources are matched to fund one-time programs, projects (public 

safety vehicle replacement, road projects, facility repairs, etc.) or 

placed in reserves. 

The City is certainly not alone in experiencing tough times. Already, 

a long list of national and local businesses that have been stalwarts 

of the economy for generations have either faded away, declared 

bankruptcy or exist in name only (Circuit City, Chrysler, Gottschalks, 

Linens 'N Things, Pontiac, Mervyn’s, Charter Communications, 

Bear Stearns, KB Toys, Mother’s Cookies, Washington Mutual, 

Countrywide Bank, Lehman Brothers, the City of Vallejo amongst 

others). This list will grow as other major companies face similar 

outcomes (General Motors, Blockbuster, etc.). Locally, other 

municipal and school districts and major employers have 

implemented layoff plans and major service reductions (Gilroy, 

Santa Cruz, PVUSD, Watsonville Hospital, Happy Vacations, 

Gottschalks, DHL). Despite these failures and the extension of the 

recession into its 18th month, the City to date has made tough but 

on-going cuts to avoid major service reductions. Unfortunately, 

those reductions will be unavoidable in the coming year. 

The City has been adjusting operations in anticipation of bad times. 

Up to this point, the City has been able to avoid severe service 

reductions. It achieved this by carefully managing operations 

through the good years of the mid-2000’s and by (1) setting aside 

resources from the increased property tax collections, (2) adding 

only the following General Fund positions since 2004; 7.5 police 

officers, 5 firefighters and a remaining 1.25 community service 

positions, and (3) proactively reducing operations since 2007 

Page 11 of 20 



creating one-time and on-going savings. Unfortunately, the 

extraordinary wild land fires and police service demands of the past 

two years dramatically drew down the accumulated savings. 

Resource enhancements. The City Council and staff have 

evaluated and considered various resource enhancements, some of 

which have already been implemented. Increases in Parking Permit 

and Parking Citation rates are estimated to bring in an additional 

$150,000 during Fiscal Year 2009/10. In addition, other concepts 

recommended by the Revenue Ad Hoc Mayor Subcommittee are 

being explored and include the following: 

Expanding rental of the new Civic Plaza Community Room to 

the public (could generate appx. $25,000 annually) 

Placing “red light” cameras in the City at a reduced rate that 

may not impact a driver’s record 

Modifying other driving violations to maximize the net collection 

from these citations (current estimates are that the City collects 

less than 20% from each citation issued due to State & County 

mandates) 

Expand existing City services into fee base services for other 

public or government agencies (lab testing, Geographic 

Database management, etc.) 

Deficit can grow. Already, new financial pressures are mounting 

that could increase the size of the projected deficit. 

The State of California is expected to act upon a proposal to borrow 

upwards of $1 million from Watsonville’s property taxes. Once its 

approved by the Governor and then by two-thirds of the State 

Legislature, the City would lose these funds immediately from the 

2009/10 General Fund budget year. 

Page 12 of 20 



Table 5 below provides a summary based on preliminary information 

as to how the State will calculate the amount of funding they will 

take from the General Fund. Staff believes this is an irresponsible 

action by the State and would be devastating to the City. The City 

has already frozen 21 General Fund positions, including 6 police 

officers and 4 firefighters before considering additional reductions to 

offset the looming $4.5 million deficit. 

STATE BORROWING ESTIMATE Table 5 

Property Tax $ 5,764,000 

Triple Flip Property Tax- Sales Tax 1,541,000 

Triple Flip Property Tax- VLF 3 ,877,000 

Total Base for Prop 1A borrowing $ 11,182,000 

State of California estimated Prop 

1A borrowing (8%) 

$ 894,560 

In addition, as indicated in the table at the top of the next page, the 

State is likely to consider various other take-away options totaling 

almost $950,000. The largest potential impact would be 

approximately $440,000 from requiring that public safety agencies 

start paying for use of the State’s crime labs. This would create 

poor public policy and encourage any local Police Chief or 

administrator to consider the budgetary impact of deciding which 

cases to send to the advance crime labs for further review. 

Page 13 of 20 



Past proposals by the State to 

reduce City funding 

Source 

City program 

impacted 

Estimated 

loss 

General 

Fund 

In Budget 

Booking fee charge: alternate options 

Reinstate booking fees from the County due to Governor Police $ 10k yes yes 

Counties can charge cities for booking fees when the 

State provides them less than $35 million. The 

proposed budget would provide $31.5 million. 

Eliminate State subvention of Booking Fees LAO Police $ 175k yes no 

Citizens Option for Public Safety (COPS)/Juvenile Justice Crime Prevention grants 

10% cut for COPS Governor Police $ 10k yes yes 

Eliminate all COPS funding LAO Police $ 100k yes no 

Crime Lab fee for service 

Would, for the first time, charge Watsonville PD to 

use the State's advanced crime lab 

Gas Tax: delay disbursements 

From April-August 2008; to be paid in full without 

interest in September 2008 

Mandated reimbursements: Delaying payments 

Redevelopment Agency: Additional pass through of 5% 

of tax increment 

Parole programs to be funded with Local Government funds 

LAO Police $ 440k yes no 

Governor Streets $ 10k no yes 

Governor All $ 3k yes yes 

LAO 

Housing & 

Economic 

Development 

$ 360k no no 

Public Safety sales tax distribution eliminated LAO Police $ 233k yes yes 

Vehicle License Fee: Fund parole programs LAO General $ 225k yes no 

Fund 

TOTAL POTENTIAL GENERAL FUND LOSS: $ 946k 

TOTAL POTENTIAL LOSS TO OTHER FUNDS: 

$ 400k 

Page 14 of 20 



With Watsonville’s high unemployment rate and with over 800 

Watsonville area properties in foreclosure, any further major 

economic reductions would be devastating to our local economy. 

Already, the loss of property tax, sales tax, building revenues and 

the 911 Emergency Services Fee has caused the General Fund’s 

projected operating deficit to increase to $4.5 million. 

County Assessor change in methodology. The latest “assessed 

value projections” from the Santa Cruz County Assessor for the City 

of Watsonville included an astounding reduction in our property tax 

base by almost 12% for the 2009/10 Fiscal Year. After this 

projection was inserted into our revenue model, it further reduced 

our 2009/10 General Fund revenue forecast by $760,000. 

While a decline of this magnitude may be in line with our 

impressions of our housing market, it was certainly unexpected 

based on recent indications received from the County Assessor. 

Initially, City staff was advised that the assessor’s office was 

finalizing their data matrix and would complete their calculations in 

the coming 3-4 weeks. At this time, it was indicated that (1) the City 

of Watsonville’s property tax base would decrease but would likely 

be near or less than the 1.4% reduction we already experienced for 

Fiscal Year 2008/09, (2) that they had decided to roll back the City’s 

property value base to the 2003 year and (3) that the actual 

reduction to Watsonville was over 10 times worse than the prior 

year’s 1.4% reduction. 

Unfortunately, what was finalized by the Assessor was entirely 

different from the prior indication. Instead of rolling back values to 

2003, the Assessor chose to reset the City of Watsonville’s property 

values back to 2000 levels. However, the rest of the County, 

including unincorporated areas in our south county area, was rolled 

back to only 2002 levels. In further contrast to what was set for 

Page 15 of 20 



Watsonville, the County Assessor issued a press release to the 

public that stated the public could still submit applications to devalue 

their property tax base to the 2002 year. 

The County Assessor has until the end of July to certify their 

valuations and have indicated that about 15,200 properties countywide 

were reduced. However, as of the date of this memo, they 

have been unwilling and/or unable to provide us with a count of the 

number of parcels within Watsonville that were reduced as well as a 

data listing of the targeted properties. When a property’s market 

value has fallen below its taxable value, the County Assessor is 

obligated by the State of California to set the proper value. 

We have already met with a property tax audit firm and are working 

on strategies to counter their valuations. 

It is staffs opinion that both setting values for Watsonville based on 

different roll back year’s may not be appropriate and that the values 

used to determine market value are artificially lower due to the 

quantity of foreclosed/short sales experienced in our market. And 

though we acknowledge that the County Assessor may be acting 

within the scope of their responsibility, the County has made 

repeated and serious errors in the past several years and is now 

shorter staffed than normal, which both have eroded our confidence 

that they are able to adequately respond to these type of situations 

and properly recalculate/reduce the massive amount of property tax 

data they are attempting to do. 

As you may recall, the County has made repeated errors in the past 

several years that have cost taxpayers hundreds of thousands of 

dollars. This does not including the very recent court case in which 

the City of Scotts Valley had to sue to recover prior underpayments. 

Page 16 of 20 



Following is a list and summary of the more recent errors made by 

the County: 

City underpaid $73k, RDA overpaid $494k by County allocation error 

(April 2009). The City was notified by the County in a letters dated 

April 4, 2009 that they had made an error in calculating pass through 

payments that impacted both the City of Watsonville and the 

Redevelopment Agency of Watsonville. In the City’s case, the City 

is owed $73,462 and the County is proposing to repay this amount 

equally over a 3-year period. In the case of the RDA, the RDA now 

owes the County $494,292. City staff will be meeting with the 

County to propose terms more acceptable to the City. 

2008/09- City’s assessed valuation decrease does not tie to actual. 

For the 2008/09 Fiscal Year, the Assessor reduced the City of 

Watsonville’s tax base by 1.4%. But, according to the Auditor- 

Controller’s last allocation data for 2008/09, the City’s property tax is 

actually scheduled to decline by 2.3%. 

2008/09- City’s owes County $360k due to County allocation error. 

In 2008, we were notified by the County Assessor that they had 

misallocated the deed transfer tax to all the cities within the County 

and that Watsonville now owed the County $359,986. To remedy 

the situation, they halted “all” future collections until they determined 

they had been repaid. 

2003/04- City Library underpaid $322k by County. In March of 

2004, it was discovered that the County had underpaid the 

Watsonville Library a total of $322,000. The revenue miscalculation 

occurred after the 2000 census count resulted in an upward 

adjustment of 8,296 for Watsonville and a corresponding decline in 

the unincorporated area. Starting in Fiscal Year 2001-02, the 

Watsonville Library should have received 21 percent of the county- 

Page 17 of 20 



wide library funding instead of the 19 percent it did receive. The 

County opted to repay the City over 8 years. 

2003/04- City’s RDA owes County $1.4 million due to County 

allocation error. While in the course of a normal operational audit, 

City staff discovered that the County had made an error in its tax 

allocation and that the RDA of Watsonville owed the County 

$1,438,864. This repayment is still occurring and is scheduled to 

end in 2014. 

What’s next The City will adopt a balanced operating budget in 

time for the fiscal year starting July 1, 2009, albeit with major 

employment and/or service reductions. To accomplish this, the 

Watsonville City Council is holding the first of four public budget 

hearing in the Civic Center Council Chambers (275 Main Street, 4th 

floor) that will continue on June 2nd, June 9th and June 23rd. 

In prior years, the City’s General Fund services (Police, Fire, Code 

Enforcement, Planning and Building, Street projects, Parks and 

Community Services, and general support services) have been the 

focus of budgetary reductions to maintain a balanced operation. 

However, once dependable utility revenue streams for Water, Sewer 

and Solid Waste services are not immune from this recession and 

have been declining from increased past due and uncollectible 

accounts. 

The table at the top of the next page outlines the remainder of 

2009/10 budget adoption schedule. 

Page 18 of 20 



February 

March 

April 

May 21 

May 21 

May 26 th 

Budget Process 

Strategic Plan 

Ad-hoc revenue committee 

Mid-Year Financial Report 

Analyze Sales and Property 

tax data 

City Manager receives 

Departmental budget 

scenarios 

Conclude initial budget plan 

for City Council review 

Negotiations 

Initiate contact with all 

Bargaining Groups 

Start meetings 

Continue meetings 

Conclude bargaining unit 

meetings 

Combine negotiations and budget scenario’s for 

presentation to Council 

Council Study session- General Fund 2009/10 overview 

June 2 nd 

June 9 th 

Council Study session- All funds line item budget presented 

with emphasis on General Fund operations. 

Council Study Session- Enterprise fund, Redevelopment & 

Housing Funds and other funds; Capital Improvement 

Projects 

June 23 rd Study Session; Finalize budget plan; Adopt 2009-10 

Budget with projected budget for 2010-11. 


The savings from the proposed voluntary time off and retiree 

incentive programs would be very significant and would be saved 

instantly. Estimated savings, depending upon the number of 

Page 19 of 20 



interested and eligible positions that receive managements 

approval, could be in the order of magnitude of several hundred 

thousand over the 2009/10 Fiscal Year. 

ALTERNATIVES: 

The only actions recommended for Council’s approval at this time 

are related to the proposed voluntary time off and retiree incentive 

programs. The City Council may choose to alter the program details 

as desired. 

ATTACHMENTS: 

none 


Page 20 of 20 






CITY OF WATSONVILLE ESTABLISHING THE 

VOLUNTARY TIME OFF AND RETIREMENT 

INCENTIVE PROGRAMS AVAILABLE TO 

EMPLOYEES 

WHEREAS, due to the current state-wide budget crisis, the 

City is proposing (2) two new programs available to employees; 

and 

WHEREAS, the proposed Voluntary Time Off (VTO) and 

Retirement Incentive (RI) Programs aim to achieve savings, 

minimize the impact on public services, and help mitigate layoffs 

and other personnel reductions. 



FOLLOWS: 

1. That the Voluntary Time Off (VTO) Program available 

from July 1, 2009 to July 9, 2010, a copy of which is attached 

hereto and incorporated herein, is hereby adopted and approved. 

Reso No. (CM) 

Q:\COUNCIL\2009\052609\VTO and RI Policies.docx 

ri 5/21/2009 5:11:18 PM 

AJS ______ CJP ______ Personnel ______ 

1

2. That the Retirement Incentive (RI) Program available 

until December 31, 2009, a copy of which is attached hereto and 

incorporated herein, is hereby adopted and approved. 

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

Reso No. (CM) 

Q:\COUNCIL\2009\052609\VTO and RI Policies.docx 

bvf 5/21/2009 5:11:18 PM 

2


Voluntary Time Off Program 

Effective July 1, 2009-July 9, 2010 

PURPOSE 

The purpose of the Voluntary Time Off (VTO) program is to provide voluntary personal 

leave without pay as a method to reduce City salary costs during a budget crisis. 

Another objective of the VTO program is to assist in mitigating layoffs and other 

personnel reductions. Use of this program is strictly an effort to achieve salary savings 

and shall not be considered or construed as a lack of work. If the VTO does not result 

in cost savings to the City or creates staffing levels that cannot provide adequate 

service to the public, then the VTO leave may be denied. 

PROGRAM 

The City intends to offer this voluntary time off without pay to regular, non-temporary 

City employees only during periods of economic hardship designated as such by the 

City Manager. Participation in the VTO program requires approval of the employee’s 

supervisor, department head, and City Manager under the conditions stated above. 

VTO must be taken in whole hour increments when a weekly work schedule is reduced. 

VTO must be taken in whole day increments if employee elects to take more than one 

day off without pay. 

All employees approved to participate in the program must sign an agreement 

committing to the reduced work schedule or specified days off without pay in a defined 

time period. 

The City shall continue to pay the same level of health benefits (medical, dental, vision, 

life, etc.) and accrued benefits (vacation, sick leave, holidays, admin leave, etc.) during 

a period of VTO as the employee qualified for prior to participation in the program. 

Qualifications for merit increases shall not be impacted by VTO. Seniority accruals shall 

not be impacted by VTO. 

Employees may reduce their annual hours worked to approximately 1,720 hours and 

still receive a full year of service credit from the California Public Employees’ Retirement 

System (CalPERS). The amount of worked hours required to earn a full year of service 

credit is established by CalPERS and subject to change. Employees who are 

concerned about their service credit accrual should consult with Personnel before 

committing to the VTO program. Participation in the VTO program may impact 

retirement benefits and those considering participation in the VTO program during their 

last year of employment before retiring should consult with CalPERS about the potential 

impact on their retirement benefits. Employees are responsible for monitoring the effect 

of VTO on future retirement benefits. 

For certain positions, granting of VTO may result in additional City costs, such as 

overtime, which offset or exceed savings from VTO or result in unacceptably low 

staffing levels, hindering the delivery of critical services to the public. In such cases, the 

1

purpose of VTO would not be achieved and the VTO request may not be authorized. 

VTO must result in savings to the City without compromising delivery of critical services 

to the public or having a material negative impact on departmental operations. The City 

Manager may cancel or suspend an employee’s approved VTO if operational needs 

mandate the employee’s services. Employees will be noticed about VTO cancellation in 

accordance with the schedule change provisions of the appropriate Memorandum of 

Understanding (MOU) or 14 days (whichever is greater). 

VTO shall not be available to employees on other leaves without pay nor be used to 

extend leaves of absence. Employees shall not use accrued paid time in lieu of VTO 

hours. 

VTO used during a pay period shall not count as time worked toward the computation of 

overtime. 

PROCEDURE 

1. Requests to enroll in the VTO program must be submitted in writing to the 

employee’s supervisor or department head using the attached Voluntary Time Off 

(VTO) agreement. 

2. The employee’s supervisor shall review and make a statement regarding the 

workload impact, anticipated cost savings, and a recommendation regarding the 

request. The request shall then be forwarded to the department head. 

3. The department head will review the employee’s request and the supervisor’s 

statement and, upon approval, forward it to the City Manager for final approval. The 

department head is responsible for insuring that the VTO is consistent with the 

conditions and intent of the VTO policy. 

4. Upon approval by the City Manager, the VTO form shall be distributed as follows: 

one copy to the employee, one copy to the initiating department, one copy to the 

Personnel Department, and one copy to Payroll. 

5. Once a VTO form is approved by the City Manager, it is binding upon the 

employee for the entire period at the agreed upon participation level unless it is found 

that continuation in the program will cause undue hardship to the employee due to 

unforeseen circumstances. 

6. This program is in effect July 1, 2009 – July 8, 2010. 

2


VOLUNTARY TIME OFF (VTO) 

REQUEST/AGREEMENT 

Employee Name: 

Department: 

Job Classification: 

__________________________ 

Date: 

Division: 

I hereby voluntarily request a reduction in my work schedule or take a specified number 

of days off without pay. I acknowledge there will be a reduction in my salary. However, 

the City shall continue to pay the same level of benefits (sick leave, vacation, 

administrative leave, medical, dental, vision, life, etc.) as I am entitled to prior to 

participation in the program. If approved, I agree to the reductions specified below. 

Employee Signature: _______________________ Date:________________________ 

For proposed workweek reduction, please specify enrollment period: 

From: 

To: 

Specify number of proposed weekly hours: 

Please detail your proposed weekly schedule: 

For proposed days off without pay, please specify enrollment period: 

From: 

To: 

Specify number of proposed days off without pay: 

Please detail when you plan to take the specified days off without pay. (i.e. 2 weeks in 

June, every other Wednesday, 2 months in August & September), etc. 

3


VOLUNTARY TIME OFF (VTO) 

AUTHORIZATION 

Supervisor: 

Date: 

I recommend □ Do not recommend □ this VTO enrollment. 

Supervisor statement of workload impact, anticipated cost savings: 

Supervisor Signature:________________________ Date:____________________ 

APPROVALS: 

This request is approved as it meets the goals and intent of the VTO program. 

Department Head 

Signature: 

City Manager Signature: 

Date: 

Date: 

Comments: 

DENIALS: 

This request is denied as it does not meet cost savings goals or it cannot be 

granted without negatively impacting departmental operations. 

Department Head Signature: 


Comments: 

Date: 

Date: 

Distribution: 

Employee 

Initiating Department 

Personnel Department 

Employee Personnel File 

Payroll 

4


Retirement Incentive Program 

Valid until December 31, 2009 

PURPOSE 

The purpose of the Retirement Incentive Program is to incentivize employees to retire 

early to reduce City salary and benefit costs during a budget crisis. Use of this Program 

is strictly an effort to achieve salary savings and shall not be considered or construed as 

due to a lack of work. If the Program does not result in significant net cost savings to 

the City, creates staffing levels that cannot provide adequate service, or has a negative 

impact on departmental operations, then the application for the Program may be denied. 

PROGRAM 

Eligible employees approved to participate in the Program, may continue on the City’s 

Medical plan for 24 months at the level they qualified for prior to retirement. Employees 

must continue to pay the monthly premium amount currently at $181.85/month. After 24 

months, eligible employees have the option to continue on the medical plan at the 

appropriate retiree rate. 

PROCEDURE 

1. Applications to participate in the Retirement Incentive Program shall be 

submitted in writing to the employee’s supervisor or department head using the 

attached Retirement Incentive agreement. 

2. The employee’s supervisor shall review and make a statement regarding the 

workload impact, anticipated cost savings, and a recommendation regarding the 

request. The request shall then be forwarded to the department head. 

3. The department head shall review the employee’s request and the supervisor’s 

statement and, upon approval, forward it to the City Manager for final review and 

approval. The department head is responsible for ensuring that offering a Retirement 

Incentive to the employee is consistent with the conditions and intent of the program. 

4. Upon approval by the City Manager, the Retirement Incentive approval form shall 

be distributed as follows: one copy to the employee, one copy to the initiating 

department, one copy to the Personnel Department, and one copy to Payroll. 

5. Once a Retirement Incentive form is approved by the City Manager, it is binding 

upon the employee except in cases where unforeseeable circumstances change 

causing undue hardship to the employee should he/she retire when indicated. These 

will be examined on a case by case basis. 

1


Retirement Incentive Program 

REQUEST/AGREEMENT 

Employee Name: 

Department: 

Job Classification: 

Date: 

Division: 

I certify that I plan to retire on or around ___________________ (please give your best 

estimation of your retirement date). To qualify for participation in the program the date must be 

prior to December 31, 2009. 

Employee Signature:_____________________________ 

Date:______________ 

Supervisor: 

Date: 

I recommend □ Do not recommend □ this Retirement Incentive request 

Supervisor Statement of workload impact and anticipated cost savings: 

Supervisor Signature:_______________________________ 

Date: ____________________ 

APPROVALS: 

This request is approved as it meets the goals and intent of the Retirement Incentive 

Program. 



Comments: 

Date: 

Date: 

DENIALS: 

This request is denied as it does not meet cost savings goals or it cannot be granted 

without impacting critical city services/programs or departmental operations. 



Comments: 

Date: 

Date: 

2

WHEREAS - Watsonville California

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