Scotts Valley City Council
May 21, 2025

AGENDA
Meeting of the
Scotts Valley City Council
In-Person and Remote Access
Date: May 21, 2025
Time: 6:00 PM

CONTACT

INFORMATION

MEETING LOCATION POSTING
City of Scotts Valley
1 Civic Center Drive
Scotts Valley, CA 95066
(831) 440-5600
City Council Chambers
1 Civic Center Drive
Scotts Valley, CA 95066
OR
Zoom Video Conference
https://us02web.zoom.us/j/83295730901
Agenda posted on 05-16-
2025 at City Hall, SV
Senior Center, SV Public
Works Building, and on the
Internet
at: www.scottsvalley.gov

ELECTED OFFICIALS CITY STAFF MEMBERS
Derek Timm, Mayor
Allan Timms, Vice Mayor
Steve Clark, Council Member
Krista Jett, Council Member
Donna Lind, Council Member
Mali LaGoe, City Manager
Kirsten Powell, City Attorney
Stephanie Hill, Administrative Services Director
Rodolfo Onchi, Public Works Director
Cathie Simonovich, City Clerk

MEETING NOTICE AND AGENDA PACKET MATERIALS
Notice regarding City Council Meetings:

The City Council meets regularly on the 1st and 3rd Wednesday of each month at 6:00 PM in the City Hall Council Chambers located at 1 Civic Center Drive, Scotts Valley, CA 95066, and via Zoom Webinar remote access.

Agenda and Agenda Packet Materials:

The City Council agenda and the complete agenda packet are available for review by 5:00 PM the Friday before the Wednesday meeting on the Internet at the City’s website:
www.scottsvalley.gov and in the lobby of City Hall at 1 Civic Center Drive, Scotts Valley, CA.

Pursuant to Government Code §54957.5, materials related to an agenda item, submitted after distribution of the agenda packet, are available for public inspection in the lobby of City Hall during normal business hours, Monday-Friday, 8am-12 pm and 1-5 pm. In accordance with AB 1344, such documents will be posted on the City’s website at www.scottsvalley.gov.

Public Participation:

The meeting will be available on Zoom and livestreamed to the City of Scotts Valley’s YouTube channel: https://www.youtube.com/@cityofscottsvalley
For those wishing to participate via Zoom you can join the following ways:

Zoom Webinar meeting link: https://us02web.zoom.us/j/83295730901 Or dial one of these numbers: (669) 900-9128 or (669) 444-9171 Webinar ID: 832 9573 0901

City Council Meeting Agenda Page 2
Date: May 21, 2025
Whether attendance is in-person or remote, you will be given opportunities to provide public comment at the appropriate times throughout the meeting. The time limit is up to 3 minutes for an individual, or 5 minutes for someone who is representing a group of three or more, at the discretion of the Mayor. Please note that this is not a question-and-answer time, but simply a time to provide comments to the Council. At the appropriate times during the meeting for public comment, on items not on the agenda, and on specific agenda items, the Mayor will announce that public comment will be accepted.

How to comment via in-person attendance:

Please proceed to the public comment podium when the Mayor opens the item for public comment.

How to comment via Zoom Webinar:

Use the webinar attendee option to “raise hand” when the Mayor opens the item for public comment. The Clerk will unmute you when it is your turn. If you have joined via Zoom phone call, dial *9 or your phone to “raise your hand”, and the Clerk will unmute you when it is your turn.

CALL TO ORDER 6:00 PM
PLEDGE OF ALLEGIANCE and MOMENT OF SILENCE

ROLL CALL

SPECIAL SET MATTER

1. Mayor's Proclamation - Homeless Garden Project, California Nonprofit of the Year

2. Mayor's Proclamation - Older Americans Month

3. Mayor's Proclamation - Public Works Week, May 18 - May 24

COMMITTEE REPORTS
Council members are appointed to committees which are either City committees or committees dealing with other jurisdictions. This portion of the agenda allows the committee member to present oral or written reports to the Council regarding their committee assignments. It also allows the Council to make comments and give the committee member direction, as required.

CITY MANAGER REPORT

PUBLIC COMMENT TIME

City Council Meeting Agenda Page 3
Date: May 21, 2025
This is the opportunity for individuals attending in person to make oral comments to the Council on any items within the purview of the Council, which are NOT part of the Agenda. No action on the item may be taken, but the Council may request the matter be placed on a future agenda. Written public comment may be emailed to the City Clerk by 5:00 PM on the day of the meeting at [email protected].

WRITTEN COMMUNICATIONS

1. Letter from Dylan Jones dated 05-06-2025

ALTERATIONS TO CONSENT AGENDA
Council can remove or add items to the Consent Agenda.

CONSENT AGENDA
The Consent Agenda is comprised of items which are intended to be non-controversial and are approved without discussion. Persons wishing to speak on any item may request the item be moved to the Regular Agenda by raising their hand to be recognized by the Mayor. An item will only be moved from the Consent Agenda to the Regular Agenda if a City Council Member requests it to be moved and a majority of the Council agrees.

1. Approve City Council minutes of 05-07-2025

2. Approve check register dated 05-03-2025 through 05-16-2025

3. Road closure for City's 4th of July Parade

4. Final Map and Subdivision Improvement Agreement for Casa Way Residential Subdivision, a Nine-Lot Subdivision Located at the Intersection of Casa Way and Sandraya Heights Road/APN 023-113-36

5. Second reading and adoption of Ordinance No. 22-200.3 AB 481 Military Equipment Use policy renewal

6. Second reading and adoption of Ordinance 7.8 amending Title 8 of the Scotts Valley Municipal Code by repealing Chapter 8.04 in its entirety and by adding a new Chapter 8.05, Graffiti Abatement - Public Nuisance

PUBLIC HEARINGS

1. Public Hearing to consider Resolution 1198.79 adopting proposed FY2025/26 User Fee Schedule and Charges

ALTERATIONS TO REGULAR AGENDA
Council can remove or add items to the Regular Agenda.

City Council Meeting Agenda Page 4
Date: May 21, 2025

REGULAR AGENDA
Persons wishing to speak on any item may do so by raising their hand to be recognized by the Mayor.

1. Five-Year Capital Improvement Plan for Fiscal Year 2025-2026 to Fiscal Year 2029-2030

2. Presentation of the Proposed Fiscal Year 2025-26 Budget, Long-Range Financial Forecast, and Fund Matrix

3. Future Council Agenda Items

CONVENE TO CLOSED SESSION

CLOSED SESSION SUBJECT(S)

1. Conference with legal counsel regarding liability claim Legal Authority: Government Code Section 54956.95
Claimant: James Ross
Staff Present: City Manager, City Attorney, Administrative Services Director

2. Conference with legal counsel regarding existing litigation Legal Authority: Government Code Section 54956.9
Name of Case: Roseann Dudrick vs. Land Trust of Santa Cruz County, et al. Superior Court of California County of Santa Cruz, Case Number: 24CV00230
Staff Present: City Manager, City Attorney, Administrative Services Director

RECONVENE TO OPEN SESSION

REPORT ON ACTION TAKEN DURING CLOSED SESSION

ADJOURNMENT

ADA NOTICE
The City of Scotts Valley does not discriminate against persons with disabilities. The City Council Chambers is an accessible facility. If you wish to attend a City Council meeting and require assistance such as sign language, a translator, or other special

City Council Meeting Agenda Page 5
Date: May 21, 2025
assistance or devices in order to attend and participate at the meeting, please call the City Clerk's office at (831) 440-5600 five to seven days in advance of the meeting to make arrangements for assistance. If you require the agenda of a City Council meeting be available in an alternative format consistent with a specific disability, please call the City Clerk’s Office. The California State Relay Service (TTY/VCO/HCO to Voice: English 1-800-735-2929, Spanish 1-800-855-3000; or, Voice to TTY/VCO/HCO: English 1-800-735-2922, Spanish 1-800-855-3000), provides Telecommunications Devices for the Deaf and Disabled and will provide a link between the TDD caller and users of telephone equipment.

City Council Meeting Agenda Page 6
Date: May 21, 2025

PROCEDURAL INFORMATION FOR THE PUBLIC

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
APPROVAL OF A RESOLUTION:

1. Move the Resolution number for approval.

2. Second the motion.

3. Vote by body, a roll call vote is not required.

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
INTRODUCTION/ADOPTION OF AN ORDINANCE:

1. Move the Ordinance number for introduction (or adoption).

2. Move the Ordinance be introduced by title only and waive the reading of the text.

3. Read the Ordinance title.

4. Second the motion.

5. Vote by body, a roll call vote is not required.

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
PUBLIC COMMENT/PUBLIC HEARINGS:

Unless otherwise determined by the presiding officer of the meeting:

1. Three minutes allowed per individual to speak.

2. Five minutes allowed per individual representing a group of three or more. ❖❖❖❖❖❖❖❖
The City of Scotts Valley does not discriminate against persons with disabilities. The City Council Chambers is an accessible facility. If you wish to attend a City Council meeting and require assistance such as sign language, a translator, or other special assistance or devices in order to attend and participate at the meeting, please call the City Clerk's office at (831) 440-5602 five to seven days in advance of the meeting to make arrangements for assistance. If you require the agenda of a City Council meeting be available in an alternative format consistent with a specific disability, please call the City Clerk’s Office. The California State Relay Service (TTY/VCO/HCO to Voice: English 1-800-735-2929, Spanish 1-800-855-3000; Voice to TTY/VCO/HCO: English 1- 800-735-2922, Spanish 1-800-855-3000; or, from or to Speech-to-Speech, English & Spanish 1- 800-854-7787), provides Telecommunications Devices for the Deaf and Disabled and will provide a link between the TDD caller and users of telephone equipment.

Dylan Jones
Scotts Valley, CA 95066
5/6/2025
Cathie Simonovich
City Clerk
City of Scotts Valley
1 Civic Center Drive
Scotts Valley, CA 95066
Subject: Request for City Council Agenda Item – Discussion and Action Regarding City Manager Residency Language in Municipal Code and Contractual Expectations Dear Ms. Simonovich,
I am writing to formally request the addition of an agenda item to an upcoming Scotts Valley City Council meeting regarding the outdated residency requirement for the City Manager currently found in the City’s municipal code and the broader question of establishing a clear, updated standard of residency or proximity for the role.

As confirmed by the City Attorney, the current provision requiring the City Manager to reside within city limits is unenforceable under California Government Code §50083.

While I agree this provision must be amended, I believe the policy implications of its removal merit public discussion and formal Council consideration. My request is twofold:

1. That the Council publicly discuss and vote on whether the outdated residency clause should be replaced with a revised standard — such as a requirement to reside within Santa Cruz County or within a defined driving distance of City Hall;

2. That the Council clarify its expectations for community presence and emergency responsiveness in the City Manager’s role, either through ordinance, resolution, or amendment to the employment agreement.

This issue carries implications beyond compliance. Scotts Valley is a small, community-oriented city with a long history of valuing proximity and responsiveness in its leadership. Given the geographic and infrastructural realities of Highway 17 — and the City Manager’s critical role in emergencies — I believe this matter deserves public input and thoughtful policy framing.

I respectfully ask that this item be placed on an upcoming Council agenda pursuant to public interest, and that appropriate notice be given in accordance with the Brown Act.

Please confirm receipt of this letter and advise me of the next steps or any additional documentation required.

Sincerely,
Dylan Alan Jones
Scotts Valley Resident

PLEDGE OF ALLEGIANCE and MOMENT OF SILENCE

ROLL CALL
CITY STAFF MEMBERS PRESENT:

Mali LaGoe, City Manager
Kirsten Powell, City Attorney
Stephanie Hill, Administrative Services Director
Steve Walpole, Police Chief
Jayson Rutherford, Police Captain
Scott Garner, Police Captain
Rodolfo Onchi, Public Works Director
Cathie Simonovich, City Clerk

ELECTED OFFICIALS
PRESENT:

Derek Timm, Mayor
Allan Timms, Vice Mayor
Steve Clark, Council Member
Krista Jett, Council Member
Donna Lind, Council Member

SPECIAL SET MATTER

COMMITTEE REPORTS

MINUTES
Meeting of the
Scotts Valley City Council
Date: May 7, 2025
Time: 6:00 PM

CONTACT

INFORMATION

MEETING LOCATION POSTING
City of Scotts Valley City Council Chambers The agenda was posted 1 Civic Center Drive 1 Civic Center Drive on 5-2-2025 at City Hall, Scotts Valley, CA Scotts Valley, CA 95066 SV Senior Center, SV 95066 OR Public Works Building,
(831) 440-5600 Zoom Video Conference and on the Internet https://us02web.zoom.us/j/83295730901 at www.scottsvalley.gov.

CALL TO ORDER 6:00 PM
The City Council meeting was called to order at 6:00 PM.

1. Mayor's Proclamation - Peace Officers Memorial Day
Mayor Timm presented the proclamation for Peace Officers Memorial Day, and Officer Patrick Ahrens accepted the proclamation on behalf of the Police Officers Association.

City Council Meeting Minutes
Date: May 7, 2025

CITY MANAGER REPORT
CM Clark attended a Regional Transportation Commission (RTC) meeting where they adopted the 2025 unmet transit and paratransit needs list and also approved/allocated funds for specialized transportation services. CM Clark noted that the RTC will hold two in-person community workshops for the Zero Emissions Passenger Rail-Trail Project on 5/12 and 5/14.

CM Clark noted that the Senior Council became aware of two programs that are at risk due to federal cuts. These programs are the Foster Grandparent Program and the Senior Companion program, and both of these important programs help to address the harms of senior isolation.

CM Clark, as part of an Economic Development Subcommittee initiative, started the business outreach plan in order to understand the complex needs of the various businesses in Scotts Valley.

VM Timms attended the Budget Subcommittee meeting where they reviewed the overall budget.

CM Lind attended a Criminal Justice Council (CJC) Executive Board meeting where they are working through the details of dissolving the Council next month, including the details of funds distribution and website hosting.

CM Lind met with the Regional Transit Commission's Executive Director, Sarah Christensen, to discuss issues common to METRO, RTC and the City.

CM Lind attended a Santa Cruz Metropolitan Transit District (METRO) ad hoc meeting where they discussed the CEO's review as well as challenges in the upcoming year.

CM Lind attended the Chamber of Commerce preparation meeting for the awards gala event that will be on Friday, 5/9. The event is sold out but contact CM Lind or the Chamber of Commerce if you are still in need of tickets.

CM Lind attended Scotts Valley High School's 25-year anniversary gala.

Mayor Timm attended both Budget Subcommittee meetings which occurred since the last Council meeting. He noted that the subcommittee is closely monitoring the sales tax returns in the City, and he expressed thanks to all departments for searching for budget savings in the next fiscal year.

Budget Subcommittee: City Manager LaGoe expressed thanks to the subcommittee members for their many hours of work on the budget preparation. The City is anticipating a tight budget year for FY 2025-26 partially due to a projected sales tax revenue decrease, receiving only 50% of Measure X revenues in the upcoming fiscal

City Council Meeting Minutes
Date: May 7, 2025

year, waiting for $2 million from the federal government for road repairs, and the upcoming labor agreement increases that have already been negotiated. All departments have participated in cost-saving measures, and the City has researched the various special revenue funds that can be used to protect the general fund. The proposed budget will be presented at the 5/21 City Council meeting.

Strategic Plan Update: The update to the Strategic Plan for the first three quarters of the current fiscal year is published on the City's website and was also sent out in the newsletter.

Senior Center Board: There are three vacancies on the Senior Center Board. If you are interested in serving on the Senior Center Board, or would like to find out more information, please contact City Clerk Cathie Simonovich or Recreation Division Manager Allison Pfefferkorn.

Mt. Hermon Signal Timing Project: Engineering is finalizing the plan to modernize and improve the signal timing on Mt. Hermon Road and is waiting on equipment that has been delayed.

Bid Package for Pavement Management Plan (PMP): The bid package was posted this week for a large PMP summer project which includes 18 lane miles of roads in Scotts Valley. The optional pre-bid meeting is on 5/12. Please see the City's website for more information.

New Staff Members: The City welcomed a new Maintenance Worker I, Riley, who started last week. We also will welcome a new Associate Planner, Joshua, who will start next Monday.

Maintenance of Fields/Parks: The maintenance staff are doing a great job staying on top of irrigation, gopher control, and general maintenance, so the fields are in better condition than in the past.

Softball/Little League Meeting: The joint meeting between the City and representatives of Softball and Little League was productive. The meeting participants were able to talk through and clarify information to dispel the rumors that had been circulating, to discuss where we are at, to discuss what the process will be over the next several months, and to discuss what fees may look like in the future. The City asked the league representatives to list the projects that need to be completed to better support our youth athletes. City Manager LaGoe thanked CM Clark for his input and participation in this meeting.

Environmental Impact Scoping Meeting: An environmental impact scoping meeting for the Town Center Specific Plan update will be held on 5/22 at 5:30 PM in the Council Chambers.

City Council Meeting Minutes
Date: May 7, 2025

PUBLIC COMMENT TIME

ALTERATIONS TO CONSENT AGENDA

CONSENT AGENDA

PUBLIC HEARINGS
Reminders:
• Follow the City on social media
• Sign up for the City's newsletter
John Marlow asked for information on when the budget will be available for public review.

CM Lind noted the great work being done by Damians Ladder which provide services free of charge to seniors in our community, such as plumbing, electrical, and more.

City Manager LaGoe noted that the agenda for 5/21 Council meeting will be published on 5/16, and it will have the staff report and links to the proposed budget. At the 5/21 Council meeting, the City will accept public comments on the proposed budget, and the final adoption of the budget is scheduled for 6/4. Anyone interested in receiving notifications when the agendas are published can sign up on the City's website.

M/S: Timms/Clark
To approve the Consent Agenda with no alterations.

Carried 5/0 (AYES: Timm, Timms, Clark, Jett, Lind)

1. Approve City Council minutes of 04-16-2025

2. Approve check register dated 04-12-2025 through 05-02-2025

3. Investment Report for the Quarter Ended March 31, 2025

4. Selection and direction to enter into a professional services agreement for auditing services
The Public Hearing Item was heard immediately after Regular Agenda Item 1 as Public Hearings must be heard after 6:30 PM.

1. Public Hearing on Vacancies to Comply with Assembly Bill 2561

City Council Meeting Minutes
Date: May 7, 2025

ALTERATIONS TO REGULAR AGENDA

REGULAR AGENDA
Administrative Services Stephanie Hill presented this item.

Mayor Timm opened the public hearing at 6:33 PM.

Public comment was received from John Marlow who asked how we evaluate staff to ensure that they are efficient.

City Manager LaGoe reviewed the City's annual evaluation process.

Mayor Timm closed the public hearing at 6:37 PM.

M/S: Lind/Timms
To approve the Regular Agenda with no alterations.

Carried 5/0 (AYES: Timm, Timms, Clark, Jett, Lind)
Regular Agenda Item 1 was heard before the Public Hearing Item since the Public Hearing item could not be heard until 6:30 PM.

1. Consider request to display the Pride flag to commemorate Pride Month from June 1st to June 30th, 2025
City Manager LaGoe presented this item, and the Council Members expressed their support for displaying the Pride flag and the fact that it reflects that Scotts Valley values inclusivity.

M/S: Timms/Jett
To approve the display of the Pride flag from June 1st to June 30th, 2025 to commemorate Pride Month.

Carried 5/0 (AYES: Timm, Timms, Clark, Jett, Lind)

2. Scotts Valley Police Annual Activity Report
Police Chief Steve Walpole presented this item, and the Council Members expressed their thanks to the Police Department staff.

3. AB 481 Military Equipment Use Annual Report and Ordinance Renewing the Military Use Policy
Captain Scott Garner presented this item.

M/S: Lind/Timms
To review and renew Ordinance No. 22-200.2 by introducing and waiving further reading of Ordinance No. 22.200.3 approving Lexipol Policy 706 pertaining to the funding, acquisition, and use of military equipment as mandated by Assembly Bill 481.

City Council Meeting Minutes
Date: May 7, 2025

Carried 5/0 (AYES: Timm, Timms, Clark, Jett, Lind)
M/S: Lind/Jett
To approve the acquisition of the three new Colt rifles as listed in the Annual Report.

Carried 5/0 (AYES: Timm, Timms, Clark, Jett, Lind)

4. Introduction of Ordinance 7.8 amending Title 8 of the Scotts Valley Municipal Code by repealing Chapter 8.04 in its entirety and by adding a new Chapter

8.05, Graffiti Abatement - Public Nuisance
Captain Jayson Rutherford presented this item, which is an item previously requested as a future agenda item by CM Clark and supported by the full Council.

CM Jett expressed concern about property owners who may not have the resources to clean up graffiti.

City Manager LaGoe noted that the City has a volunteer program which is run by the Recreation Division, and citizens can also email concerns to the Public Works Maintenance email address which is [email protected].

M/S: Clark/Timms
To introduce Ordinance 7.8 amending Title 8 of the Scotts Valley Municipal Code by repealing Chapter 8.04 in its entirety and by adding a new Chapter 8.05, Graffiti Abatement - Public
Nuisance and waive the reading thereof.

Carried 5/0 (AYES: Timm, Timms, Clark, Jett, Lind)

5. Future Council Agenda Items
None.

The meeting adjourned at 7:16 PM.

Attest:

Cathie Simonovich, City Clerk
Approved:

Derek Timm, Mayor

ADJOURNMENT

apadatecr2 City of Scotts Valley llambert 05/16/2025 12:57 Page 1 A/P Check Register Checks from 05/03/2025 to 05/16/2025
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type Cash Account: 999-10100-000-000-000000
133938 05/08/25 AMAZON CAPITAL SERVICES 1,499.30 O Regular 133939 05/08/25 APGN INC 19,902.00 O Regular133940 05/08/25 BOWMAN & WILLIAMS 14,390.00 O Regular133941 05/08/25 BUSINESS WITH PLEASURE 85.33 O Regular133942 05/08/25 COMCAST 252.74 O Payment Manager133943 05/08/25 COMCAST 1,050.55 O Regular133944 05/08/25 CRYSTAL SPRINGS WATER CO 148.50 O Regular133945 05/08/25 CYPRESS COAST FENCE 57,514.00 O Regular133946 05/08/25 DAWN BANKS 201.20 O Regular133947 05/08/25 DEPT OF TRANSPORTATION 15,361.51 O Regular133948 05/08/25 DIXON & SON TIRE 153.00 O Regular133949 05/08/25 ENVIRONMENTAL INNOVATIONS 5,542.00 O Regular133950 05/08/25 KIMLEY-HORN & ASSOCIATES INC 23,284.78 O Regular133951 05/08/25 KIWANIS CLUB OF SCOTTS VALLEY 1,000.00 O Regular133952 05/08/25 LIEBERT CASSIDY WHITMORE 3,833.55 O Regular133953 05/08/25 MARY LOUISE DEFALCO 44.00 O Regular133954 05/08/25 MCCAMPBELL ANALYTICAL, INC. 284.00 O Regular133955 05/08/25 MID VALLEY SUPPLY 1,014.77 O Payment Manager133956 05/08/25 MISSION UNIFORM SERVICE 370.51 O Payment Manager133957 05/08/25 MONTEREY BAY ANALYTICAL SVCS 3,123.65 O Regular133958 05/08/25 NATIONAL COMTEL NETWORK INC. 20.44 O Regular133959 05/08/25 NORTH BAY FORD-LINCOLN- 275.00 O Regular133960 05/08/25 OREILLY AUTOMOTIVE,INC 70.20 O Regular 133961 05/08/25 PACIFIC GAS & ELECTRIC CO 59,807.79 O Regular133962 05/08/25 PALACE BUSINESS SOLUTIONS 8.48 O Regular133963 05/08/25 PETERSON POWER SYSTEMS, INC. 4,378.72 O Regular133964 05/08/25 PHILLIP D NEUMAN 47,787.47 O Regular133965 05/08/25 PRESS BANNER 232.75 O Regular133966 05/08/25 PURETEC INDUSTRIAL WATER 59.66 O Regular133967 05/08/25 SAN LORENZO VALLEY WATER DISTR 70.94 O Regular133968 05/08/25 SANTA CRUZ CO HEALTH SERVICES 1,944.00 O Regular133969 05/08/25 SANTA CRUZ FIRE EQUIPMENT 2,029.50 O Regular133970 05/08/25 SANTA CRUZ LIVE SCAN, INC. 30.00 O Regular133971 05/08/25 SANTA CRUZ MOUNTAINS TRAIL STE 29,046.00 O Regular133972 05/08/25 SANTA CRUZ SENTINEL 649.24 O Payment Manager133973 05/08/25 SCARBOROUGH LUMBER 108.41 O Regular133974 05/08/25 SCOTTS VALLEY SPRINKLER 26.07 O Regular133975 05/08/25 STANDARD INSURANCE COMPANY 1,023.10 O Regular133976 05/08/25 SYCAL ENGINEERING INC 402.00 O Regular133977 05/08/25 TORO PETROLEUM CORP 14,355.48 O Regular133978 05/08/25 TRITON CONSTRUCTION 300.00 O Regular133979 05/08/25 USA BLUE BOOK 580.34 O Payment Manager133980 05/08/25 WAGE WORKS 125.00 O Regular133981 05/08/25 WENDY OMEARA 58.00 O Regular

apadatecr2 City of Scotts Valley llambert 05/16/2025 12:57 Page 2 A/P Check Register Checks from 05/03/2025 to 05/16/2025
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type133982 05/08/25 WIZIX TECHNOLOGY GROUP, INC 14.50 O Payment Manager133983 05/08/25 YESHE JACKSON FINE ART 800.00 O Regular133984 05/16/25 ACE PORTABLE SERVICES 337.19 O Payment Manager133985 05/16/25 ALVAREZ IND INC CLEAN BLDG 451.00 O Regular133986 05/16/25 AT&T 8.86 O Regular133987 05/16/25 AT&T 3,919.50 O Regular133988 05/16/25 AT&T MOBILITY 1,551.66 O Regular133989 05/16/25 BATTERIES + BULBS #314 172.01 O Regular133990 05/16/25 BOWMAN & WILLIAMS 4,575.00 O Regular133991 05/16/25 BRINKS AWARDS & SIGNS 153.65 O Regular 133992 05/16/25 CHLOE GRAHAM 600.00 O Regular133993 05/16/25 COMCAST 323.11 O Payment Manager133994 05/16/25 DEPT OF JUSTICE 32.00 O Regular133995 05/16/25 DIXON & SON TIRE 689.80 O Regular133996 05/16/25 ENTERPRISE FM TRUST 26,436.88 O Regular133997 05/16/25 EWING IRRIGATION PRODUCTS 905.21 O Payment Manager133998 05/16/25 GRAINGER 2,259.68 O Regular133999 05/16/25 HERWIT ENGINEERING 6,058.00 O Regular134000 05/16/25 JAYSON RUTHERFORD 213.00 O Regular134001 05/16/25 K & D LANDSCAPING, INC. 3,910.00 O Regular134002 05/16/25 LLOYDS TIRE SERVICE INC. 646.86 O Regular134003 05/16/25 LUKE PRELGOVISK 1,561.00 O Regular134004 05/16/25 MEREDITH ROBERTS 258.00 O Regular134005 05/16/25 MISSION UNIFORM SERVICE 188.09 O Payment Manager134006 05/16/25 MONTEREY BAY ANALYTICAL SVCS 1,190.40 O Regular134007 05/16/25 MONTEREY ONE WATER 544.16 O Regular134008 05/16/25 MONTEREY REGIONAL 11,075.40 O Payment Manager134009 05/16/25 MP EXPRESS, INC. 911.60 O Regular134010 05/16/25 OREILLY AUTOMOTIVE,INC 35.11 O Regular134011 05/16/25 OLIN CORPORATION AS SOLE 5,167.14 O Regular134012 05/16/25 OPENGOV, INC. 8,680.00 O Regular134013 05/16/25 PALACE BUSINESS SOLUTIONS 498.68 O Regular134014 05/16/25 PARK ASSOCIATES INC. 4,004.48 O Regular134015 05/16/25 PHILLIP D NEUMAN 816.17 O Regular134016 05/16/25 PHOENIX GROUP 315.78 O Regular134017 05/16/25 PRECISION EMPRISE LLC 6,462.20 O Regular134018 05/16/25 SANTA CRUZ COUNTY CONFERENCE 5,155.33 O Regular134019 05/16/25 SARAH ORRE 540.00 O Regular134020 05/16/25 SCARBOROUGH LUMBER 293.67 O Regular134021 05/16/25 SCOTT GARNER 213.00 O Regular134022 05/16/25 SCOTTS VALLEY SPRINKLER 197.52 O Regular134023 05/16/25 STERICYCLE INC 399.31 O Regular134024 05/16/25 THOMSON REUTERS-WEST 396.48 O Payment Manager134025 05/16/25 U.S. BANCORP OFFICE 1,300.62 O Regular134026 05/16/25 U.S. BANK CORPORATE 13,609.10 O Regular

apadatecr2 City of Scotts Valley llambert 05/16/2025 12:57 Page 3 A/P Check Register Checks from 05/03/2025 to 05/16/2025
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type134027 05/16/25 VERIZON WIRELESS 178.49 O Regular134028 05/16/25 WATSONVILLE DIESEL 800.00 O Payment Managerapadatecr2 City of Scotts Valley llambert 05/16/2025 12:57 Page 3 A/P Check Register Checks from 05/03/2025 to 05/16/2025
78 Checks total: 414,386.04
0 ACH total:0 EFTPS total:0 Wire transfer total:
13 Payment Manager total: 16,907.5891 GRAND TOTALS 431,293.62

AGENDA ITEM 3.

DATE: 5/21/2025
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 5/21/2025
TO: Honorable Mayor and City Council
FROM: Scott Garner, Police Captain
APPROVED: Mali LaGoe, City Manager
SUBJECT: Road closure for City's 4th of July Parade

SUMMARY OF ISSUE
On July 4, 2025, the City of Scotts Valley will celebrate Independence Day by hosting a parade along Scotts Valley Drive. The proposed parade route will begin at Carbonero Way, travel northbound to El Pueblo Road, make a U-turn, and travel southbound to Civic Center Drive, make a U-turn, and return to Carbonero Way. The roadway will be closed in both directions in order to maximize pedestrian/audience safety, with police officers and volunteers manning various driveways and barricaded sections along the parade route.

The parade will begin at 11:00 AM. Anticipated participants for the parade include antique/classic car enthusiasts, children's groups (such as 4H, cub scouts, etc), dance groups, martial arts clubs, bicyclists, pets, emergency vehicles, service clubs, floats, etc.

Closure of the roadway will require the City Council to adopt a resolution in compliance with California Vehicle Code 21101(e). Appropriate notice letters will be distributed to affected businesses and residences, and the police department will further alert the public via the mobile radar trailer message board prior to the event. A press release will be issued for media coverage, and appropriate teletypes will be sent to affected agencies (such as fire, ambulance, transit, sheriff, CHP, etc).

FISCAL IMPACT
Additional overtime will be necessary for police staff to work this event. Approximately eight police officers (in addition to the two already working patrol July 4th) will be required to work this event from 10:00 AM to 2:00 PM. The cost of $4,000 will be absorbed by the Police Department's overtime budget.

STAFF RECOMMENDATION
Staff recommends the City Council adopt Resolution No. 1851.12 establishing a road closure along the above specified route of Scotts Valley Drive in order to host a parade in celebration of Independence Day on July 4, 2025.

TABLE OF CONTENTS

1. Resolution No. 1851.12 July 4th Parade road closure 2025

RESOLUTION NO. 1851.12

RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SCOTTS VALLEY TEMPORARILY CLOSING A PORTION OF
SCOTTS VALLEY DRIVE FOR THE CITY’S 4th OF JULY PARADE
WHEREAS, in celebration of Independence Day, the City has planned a parade to be held on July 4, 2025; and
WHEREAS, the parade route shall be along Scotts Valley Drive from Carbonero Way, travel northbound to El Pueblo Road, make a U-turn and then southbound to Civic Center Drive, make a U-turn and return to Carbonero Way; and
WHEREAS, participants in the parade and spectators will utilize all lanes of Scotts Valley Drive; and
WHEREAS, it is necessary to temporarily close Scotts Valley Drive from Civic Center Drive to El Pueblo Road for the safety and protection of the participants and spectators of the parade.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Scotts Valley hereby orders the temporary closure of Scotts Valley Drive from Civic Center Drive to El Pueblo Road from 10:30 AM until 2:30 PM. on July 4, 2025. Such road closure shall be posted along the parade route by June 23, 2025.

The above and foregoing resolution was adopted at a duly held regular meeting of the City Council on the 21st of May 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Approved:

Derek Timm, Mayor
Attest:

Cathie Simonovich, City Clerk

AGENDA ITEM 4.

DATE: 5/21/2025
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 5/21/2025
TO: Honorable Mayor and City Council
FROM: Rodolfo Onchi, Public Works Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Final Map and Subdivision Improvement Agreement for Casa Way Residential Subdivision, a Nine-Lot Subdivision Located at the Intersection of Casa Way and Sandraya Heights Road/APN 023-113- 36 SUMMARY OF ISSUE
On January 17, 2024, the City Council approved a subdivision of nine single-family residential use lots. The project site (APN: 023-113-36) is a 5.71-acre site located at the southeast intersection of Casa Way and Sandraya Heights Road. Staff has reviewed the conditions of approval and found that all necessary conditions have been completed prior to the filing of the map. Because the applicant has not yet completed the public improvements on the property, they are required to enter into a Subdivision Improvement Agreement that will ensure the work is completed within 12 months and requires bonds to assure the completion of the work.

FISCAL IMPACT
There is no fiscal impact to the General Fund. Approximately $90,914.00 was collected from the applicant to cover applicable City costs for surveyor, Planning Department Final Map review, park dedication in-lieu fees, and Department of Public Works Final Map review.

STAFF RECOMMENDATION
It is recommended that Council approve Resolution No.2043.2, approving the Final Map, and Resolution No. 2043.3, approving the Subdivision Improvement Agreement, Casa Way residential subdivision, APN 023-113-36.

TABLE OF CONTENTS

1. Reso2034.2

2. 2025_0514 Tract 1619 Final MapSandrayaHeights

3. Reso2034.3

RESOLUTION NO. 2043.2

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY

APPROVING THE FINAL MAP FOR THE CASA WAY RESIDENTIAL SUBDIVISION (APN 023-113-36)
WHEREAS, the City of Scotts Valley has received an application from Sandraya Heights LLC (referred to as the “Applicant”) for “Sandraya Heights Land Division” project to subdivide a vacant 5.71-acre parcel into nine lots for residential development, located at the intersection of Casa Way and Sandraya Heights Road / APN 023-113- 36 (the “Project”); and
WHEREAS, the City Council approved a Mitigated Negative Declaration for the Project in Resolution No. 2043; and
WHEREAS, consistent with the approved Tentative Map, the Applicant submitted a Final Map for the Subdivision to the City for approval; and WHEREAS, staff has reviewed the proposed Final Map and finds it to be technically correct and consistent with the Tentative Map and that all applicable Final Map conditions of approval have been substantially satisfied.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Scotts Valley as follows:

1. The location and configuration of the lots to be created by the Subdivision substantially comply with the previously approved Tentative Map and all applicable Final Map conditions of approval have been substantially satisfied; and

2. The City Council of the City of Scotts Valley, pursuant to Government Code Section 66458, hereby approves the Final Map for the Subdivision, a copy of which is hereby attached as Exhibit A and made part of this Resolution.

The above and foregoing Resolution was duly and regularly adopted by the City Council of the City of Scotts Valley at a regular meeting held on the 21st day of May, 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Approved:____________________________
Derek Timm, Mayor

Attest: ___________________________
Cathie Simonovich, City

RESOLUTION NO. 2043.3

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY

AUTHORIZING EXECUTION OF THE SUBDIVISION IMPROVEMENT AGREEMENT FOR THE CASA WAY RESIDENTIAL SUBDIVISION (APN 023-113-36) WHEREAS, the City Council of the City of Scotts Valley desires to enter into a Subdivision Improvement Agreement with Sandraya Heights LLC (the “Developer”) for the development of the “Sandraya Heights Land Division” project to subdivide a vacant

5.71-acre parcel into nine lots for residential development, located at the intersection of Casa Way and Sandraya Heights Road / APN 023-113- 36 (the “Project”); and WHEREAS, the City Council approved Resolution No. 2043, approving the mitigated negative declaration for the Project; and
WHEREAS, this agreement will require the Developer to complete approximately $1,269,729.60 in improvements, both on and off-site street work, storm drain, sanitary sewer, sidewalk, signage, and pavement striping in accordance with the Project conditions of approval and City standard construction design standards as shown on those certain improvement plans dated September 04, 2024; and WHEREAS, Developer has submitted sureties in the amount of $1,269,729.60 for Faithful Performance and $634,864.80 for Labor and Materials. Such sureties have been reviewed and approved by the City Engineer.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Scotts Valley that the Subdivision Improvement Agreement with between the City of Scotts Valley and Sandraya Heights LLC for the “Sandraya Heights Land Division”, located at the intersection of Casa Way and Sandraya Heights Road / APN 023-113- 36 is hereby approved, and the City Manager is hereby authorized to execute the Subdivision Improvement Agreement for the Subdivision in the form attached hereto as Exhibit A and is made part of this resolution.

The above and foregoing Resolution was duly and regularly adopted by the City Council of the City of Scotts Valley at a regular meeting held on the 21st day of May 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Approved: ____________________________
Derek Timm, Mayor

Attest: ___________________________
Cathie Smonovich, City Clerk

EXHIBIT "A"
Legal Description
CLTA Preliminary Report Form - Modified (11.17.06) Printed: 04.12.25 @ 10:17 AM by SCA0002402.doc / Updated: 07.30.24 3 CA-LT---SPS-1-25-FLNP-0042500373 For APN/Parcel ID(s): 023-113-36

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SCOTTS VALLEY, COUNTY OF SANTA CRUZ, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

PARCEL 3, AS SHOWN ON THAT CERTAIN PARCEL MAP FILED FOR RECORD DECEMBER 30, 1985 IN BOOK 46 OF PARCEL MAPS, AT PAGE 23, RECORDS OF SANTA CRUZ COUNTY.

EXHIBIT "B"
Casa Way Residential Subdivision - Offsite & Onsite Cost Estimate Sandraya Heights, LLC

QUANTITY UNIT OF
(APPROX.) MEASURE
1 Tree removal 60 EA 500.00 $ 30,000.00
2 Clear & Grub 1 LS 25,000.00 $ 25,000.00
3 Remove (E) AC (Sandraya Heights Road) 15,250 SF 3.50 $ 53,375.00 4 Over-Ex & Recompact (below roads, 12" deep) 55,096 SF 0.80 $ 44,076.80 5 Erosion Control / Tree Protection 1 LS 2,500.00 $ 2,500.00 Subtotal $ 154,951.80
6 AC pavement - 4" AC / 13" AB 27,224 SF 11.75 $ 319,882.00 7 Sidewalk (4" Conc. / 3" Sand) 5,200 SF 8.75 $ 45,500.00 8 Turf Block (Rated for H20 loading) 3,448 SF 18.35 $ 63,270.80 9 Vertical curb 400 LF 12.00 $ 4,800.00
10 Rolled Curb 1,700 LF 25.00 $ 42,500.00
11 Curb Ramp 2 EA 3,200.00 $ 6,400.00
11 Valley Gutter 55 LF 19.00 $ 1,045.00
12 Signage (trunc. domes, ADA signs, etc.) 1 LS 4,000.00 $ 4,000.00 13 Pavement Striping 1 LS 5,000.00 $ 5,000.00
Subtotal $ 492,397.80
14 Sanitary Sewer Lateral- 4" PVC SDR-26 846 LF 55.00 $ 46,530.00 15 Storm Drainage - 30" HDPE Pipe 69 LF 155.00 $ 10,695.00 15 Storm Drainage - 24" HDPE Pipe 529 LF 138.00 $ 73,002.00 16 Strom Drainage - 18" HDPE Pipe 153 LF 126.00 $ 19,278.00 17 Strom Drainage - 15" HDPE Pipe 21 LF 119.00 $ 2,499.00 18 Storm Drainage - 12" HDPE Pipe 8 LF 111.00 $ 888.00
19 Storm Drainage - 10" HDPE Pipe 211 LF 80.00 $ 16,880.00 20 Storm Drainage - 6" HDPE Pipe 2,100 LF 68.00 $ 142,800.00 21 Storm Drainage - 4" HDPE laterals 1 EA 40,000.00 $ 40,000.00 22 Storm Drainage - Mechanical Treatment Device 1 EA 22,000.00 $ 22,000.00 23 Storm Drainage - Bio-Retention 3,458 SF 26.00 $ 89,908.00 24 Storm Drainage - U43 Drop Inlet 2 EA 4,800.00 $ 9,600.00 25 Storm Drainage - U23 Drop Inlet 8 EA 425.00 $ 3,400.00 26 Storm Drainage - V64 Drain Inlet 10 EA 500.00 $ 5,000.00 27 Storm Drainage - 48" Manhole (6-8' average depth) 3 EA 7,200.00 $ 21,600.00 28 Storm Drainage - 60" Manhole (6-8' average depth) 1 EA 9,400.00 $ 9,400.00 29 Storm Drainage - 10" Area Drain 27 EA 700.00 $ 18,900.00 30 Joint Trench 1 LS 90,000.00 $ 90,000.00
Subtotal $ 622,380.00
GRAND TOTAL $ 1,269,729.60
Note: The above cost estimate does not include the following:

1. Construction Staking / surveying

2. City fees

3. SWPPP fees and inspections

4. Landscaping

5. Lot Grading

UNIT PRICE ITEM TOTAL
Demolition & Site Preparation
Site Improvements
Site Utilities
ITEM NO. DESCRIPTION OF ITEM
C2G 4444 Scotts Valley Drive, Suite 6, Scotts Valley, CA 95066-4529 831/438-4420 • Fax 831/438-5829 • [name]@c2gengrs.com • www.civilconsultantsgroup.com

AGENDA ITEM 5.

DATE: 5/21/2025
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 5/21/2025
TO: Honorable Mayor and City Council
FROM: Scott Garner, Police Captain
APPROVED: Mali LaGoe, City Manager
SUBJECT: Second reading and adoption of Ordinance No. 22-200.3 AB 481 Military Equipment Use policy renewal

SUMMARY OF ISSUE
California Assembly Bill 481 ("AB 481"), codified in Government Code sections 7070 through 7075, required a law enforcement agency (LEA) to obtain approval from the applicable governing body, via adoption of a “military equipment” use policy by ordinance, prior to the LEA funding, acquiring, or using military equipment no later than May 1, 2022. The City complied with AB 481 by having the Scotts Valley Police Department (“SVPD”) create a policy regarding the use of military equipment and adopting it by Ordinance No. 22-200 on May 18, 2022.

AB 481 also requires law enforcement agencies to present an annual report to their governing body consisting of a summary of how each type of equipment was used and the purpose of that use; quantity possessed of each type of equipment; annual costs for each type of equipment; summary of complaints or concerns received for each type of equipment; information disclosing violations of military equipment policies and actions taken in response, as well as results of internal audits; and plans to acquire additional military equipment in the coming year, and the quantity sought.

The SVPD prepared an annual report and on April 14, 2025, held a public meeting to discuss and answer any questions from the public regarding the annual report. The meeting was held in the Council Chambers and no community members attended. The annual report proposes replacing three outdated Bushmaster rifles with three new Colt rifles.

In addition to the annual report, AB 481 also requires the City Council to, within a year of the initial approval, and at least annually thereafter, review the ordinance establishing the military use policy.

The first reading of Ordinance No. 22-200.3 occurred at the City Council meeting on May 7, 2025.

FISCAL IMPACT

None.

STAFF RECOMMENDATION
Staff recommends the City Council adopt Ordinance No. 22-200.3 approving Lexipol Policy 706 pertaining to the funding, acquisition, and use of military equipment as mandated by Assembly Bill 481.

TABLE OF CONTENTS

1. Ordiance No. 22-200.3 AB 481

004
ORDINANCE NO. 22-200.3

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY AMENDING TITLE 9 OF THE SCOTTS VALLEY MUNICIPAL CODE BY ADDING CHAPTER 9.22, USE OF MILITARY EQUIPMENT BY THE POLICE DEPARTMENT WHEREAS, on September 30, 2021, Governor Gavin Newsom signed into law Assembly Bill 481, relating to the use of military equipment by law enforcement agencies; and WHEREAS, Assembly Bill 481 (AB 481), codified at California Government Code sections 7070 through 7075, requires law enforcement agencies to obtain approval of the applicable governing body, by an ordinance adopting a “military equipment” use policy at a regular meeting held pursuant to open meeting laws prior to taking certain actions relating to the funding, acquisition, or use of “military equipment”. The term “military equipment” is defined in California Government Code Section 7070; and WHEREAS, AB 481 allows the City Council to approve the funding, acquisition, or use of military equipment, within its jurisdiction only if it makes specified determinations; and WHEREAS, the proposed military equipment use policy is found within Scotts Valley Police Department Lexipol Policy Manual, General Order 706. The policy was published on February 16, 2022 and displayed on the Scotts Valley Police Department website on March 10, 2022 and was presented to the City Council in 2022, 2023, and 2024. A copy of the policy is attached hereto as Exhibit A; and WHEREAS, the Scotts Valley Police Department Policy 706 meets the requirements of California Government Code 7070; and
WHEREAS, this ordinance adds to the Municipal Code to affirm Scotts Valley Police Department Policy 706 and authorize the use of “military equipment” by the members of the Scotts Valley Police Department as described in Policy 706; and WHEREAS, in the enactment of this ordinance, the City followed the guidelines adopted by the State of California and published in the California Code of Regulations, Title 14, Section 15000, et seq. and found this activity is not a “project” as defined by California Environmental Quality Act (CEQA) because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF SCOTTS VALLEY DOES ORDAIN AS FOLLOWS:

SECTION 1. The foregoing facts are adopted as findings of the City Council as though set forth in fully within the body of this ordinance.

SECTION 2. That Chapter 9.22 of Title 9 of the Scotts Valley Municipal Code reads as follows:

006
“CHAPTER 9.22 - MILITARY EQUIPMENT USE POLICY.

Section 9.22.010 – Findings and Purpose.
(a) The City Council has made the following determinations:
(1) The military equipment inventoried and presented to the City Council is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety; and
(2) The Military Equipment Use Policy (“Policy”) will safeguard the public’s welfare, safety, civil rights, and civil liberties; and (3) The military equipment identified in the Military Equipment Use Policy is reasonably cost effective compared to available alternatives that can achieve the same objective of Officer and civilian safety; and
(4) Prior military equipment use complied with the applicable Equipment Use Policy (which included equipment now defined as military equipment) that was in effect at the time, or if prior uses did not comply with the accompanying Military Equipment Use Policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance.
(b) The Police Department has submitted a proposed Policy to the City Council and has made those documents available on the Police Department’s website for at least 30 days prior to the public hearing concerning the military equipment at issue.
(c) The Policy was considered by the City Council as an agenda item in an open session of a regular meeting, noticed in accordance with the Ralph M. Brown Act, at which public comment was permitted.
(d) The Policy shall be made publicly available on the Police Department’s website for as long as the military equipment is available for use. (e) The Police Department shall submit an annual military equipment report to the City Council, containing the information required in Government Code Section 7072, and the City Council shall determine whether each type of military equipment identified in that report has complied with the standards for approval set forth in (a)(1)-(4) above.
(f) The City Council shall review this ordinance, and vote on whether to renew it, on an annual basis at a regular meeting, in accordance with Government Code Section 7071(e)(2)
(g) The City Council approves the use of the Policy and finds that it satisfies the requirements of Government Code Section 7070(d).”
SECTION 3. SEVERABILITY. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of

006
competent jurisdiction such portion shall be deemed a separate, distinct and independent provision of such Ordinance and shall not affect the validity of the remaining portions thereof.

SECTION 4. REPEALS CONFLICTING ORDINANCES. All other ordinances of the City of Scotts Valley or provisions of the Scotts Valley Municipal Code which are in conflict with this Ordinance are hereby repealed to the extent of such conflict.

SECTION 5. CEQA COMPLIANCE. The City Council finds and determines that the enactment of this Ordinance is not a “project” as that term is used in the California Environmental Quality Act (“CEQA;” Cal. Pub. Resources Code Section 21000 et seq.) or the State CEQA Guidelines (Cal. Code of Regs., Title 14, Section 15000 et seq.).

Therefore, no environmental assessment is required or necessary.

SECTION 6. EFFECTIVE DATE. The above and foregoing ordinance was introduced for a first reading on May 7, 2025, and passed and adopted on May 21, 2025, at a duly held meeting of the City Council of the City of Scotts Valley by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ______________________________
Derek Timm, Mayor
ATTEST:

Cathie Simonovich, City Clerk

APPROVED
AS TO FORM:

Kirsten Powell, City Attorney

AGENDA ITEM 6.

DATE: 5/21/2025
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 5/21/2025
TO: Honorable Mayor and City Council
FROM: Stephen Walpole, Chief of Police
APPROVED: Mali LaGoe, City Manager
SUBJECT: Second reading and adoption of Ordinance 7.8 amending Title 8 of the Scotts Valley Municipal Code by repealing Chapter 8.04 in its entirety and by adding a new Chapter 8.05, Graffiti Abatement - Public Nuisance

SUMMARY OF ISSUE
During the first quarter of 2025, there was a visible increase in the amount of graffiti in and around the City. The past practice of the City was to have city staff abate the graffiti when it was on public property and to request private citizens to remove the defacement at their earliest convenience when it was found on their private property. The City Municipal Code did not specifically address graffiti as a criminal act, the penalty for the violation, or the process for graffiti abatement.

At the City Council meeting on April 16th, City Council Member Clark proposed a future agenda item for a graffiti ordinance which would encourage individuals and businesses to quickly clean up graffiti on private property. This new ordinance repeals Chapter 8.04, which is duplicative of the nuisance abatement chapter in Title 4, and adds a new Chapter 8.05 for the purpose of addressing graffiti as a violation of the municipal code, the fines for violations, and the process of abatement.

Under this new chapter, property owners will have an obligation to remove graffiti visible from public rights-of-way or public places within 10 days of notification. If the property owner fails to remove the graffiti, the City has the right to go on to the property to remove the graffiti. All costs incurred by the City in removing the graffiti will be charged to the property owner.

Anyone violating the terms of this chapter can be charged criminally. In addition, administrative penalties have been established in this ordinance for property owners who fail to remove graffiti and people who place graffiti on public or private property. The administrative penalties for property owners is $250 for the first violation, $500 for the second violation and $1000 for the third and any subsequent violation in a 12 month period. The administrative penalties for people placing graffiti on public or private property is $1000 for the first violation, $1500 for the second violation and $2000 for the third and any subsequent violation in a 12 month period.

The first reading of this ordinance was on May 7, 2025.

FISCAL IMPACT
Enforcement of this ordinance could require significant staff time and, although abatement costs can be recovered, it is unlikely that the full cost of staff efforts will be collected.

STAFF RECOMMENDATION
Staff recommends City Council adopt Ordinance 7.8 amending Title 8 of the Scotts Valley Municipal Code by repealing Chapter 8.04 in its entirety and by adding a new Chapter 8.05, Graffiti Abatement - Public Nuisance

TABLE OF CONTENTS

1. Ordinance No. 7.8 Graffiti

ORDINANCE NO. 7.8

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY AMENDING TITLE 8 OF THE SCOTTS VALLEY MUNICIPAL CODE BY REPEALING CHAPTER 8.04 IN ITS ENTIRETY AND BY ADDING A NEW CHAPTER 8.05,

GRAFFITI ABATEMENT- PUBLIC NUISANCE
WHEREAS, the City of Scotts Valley (the “City”) values and strives to maintain a positive community aesthetic and quality of life for its community; and WHEREAS, the presence of graffiti creates community blight, erodes community aesthetics, and reduces property values, thereby degrading the overall quality of life in the community; and
WHEREAS, graffiti suspects oftentimes seek notoriety for their designs to boost their profile within the graffiti community and the prolonged presence of graffiti encourages the proliferation of additional graffiti and other acts of vandalism; and WHEREAS, prompt removal of graffiti improves the overall community aesthetic and discourages additional acts of graffiti and other crime; and WHEREAS, addressing graffiti requires the use of City services including law enforcement reporting and investigations, and maintenance crews removal and cleanup; and
WHEREAS, through prompt reporting and removal of graffiti, property owners play a vital role in helping to curb its presence and proliferation; and WHEREAS, pursuant to California Government Code sections 38772 and 53069.3, the City may enact an ordinance to provide for the summary abatement of graffiti at the expense of the person causing the graffiti or the property owner or for the use of City funds to remove graffiti from publicly or privately owned real or personal property located within the City; and
WHEREAS, the City Council of the City desires to adopt an ordinance to declare graffiti a nuisance and provide for the summary abatement of the nuisance.

NOW, THEREFORE, the City Council of the City of Scotts Valley does hereby ordain as follows:

Section 1. Title 8 of the Scotts Valley Municipal Code is hereby amended by repealing Chapter 8.04, Nuisance Abatement, in its entirety.

Section 2. Title 8 of the Scotts Valley Municipal Code is hereby amended by adding Chapter 8.05, Graffiti Abatement- Public Nuisance, to read as follows:
“8.05 – GRAFFITI ABATEMENT – PUBLIC NUISANCE

8.05.010 - Graffiti Defined

8.05.020 - Graffiti Declared A Nuisance

8.05.030 - Placement Of Graffiti Prohibited

8.05.040 - Graffiti Prohibited

8.05.050 - Graffiti – Removal

8.05.060 - Graffiti – Violations

8.05.010 - GRAFFITI DEFINED.

As used in this chapter, “graffiti” means any unauthorized form of painting, scratching, writing, or inscription, regardless of the content or nature of the material used, which is placed upon any private structure, fixture, sign, or sidewalk in any location where it can be viewed from any public street, walkway, building, park, or facility, or upon any public structure, fixture, sign or sidewalk, and which is without the authorization of the owner or the other person in control of the property.

8.05.020 - GRAFFITI DECLARED A NUISANCE.

Graffiti is hereby determined to be a nuisance because its continued existence constitutes a visual blight upon the area in which it is located.

8.05.030 - PLACEMENT OF GRAFFITI PROHIBITED.

It shall be unlawful to place any graffiti within the City of Scotts Valley.

8.05.040 - GRAFFITI PROHIBITED.

It shall be unlawful for any person owning or otherwise in control of any real property within the City of Scotts Valley to permit or allow any graffiti to remain on such property.

8.05.050 GRAFFITI – REMOVAL
A. Removal by Responsible Party. A person who is the owner or who has primary responsibility for control of property or primary responsibility for the repair or maintenance of property that is defaced with graffiti shall remove or cause the removal of such graffiti within ten (10) days after notice of same, or shall make arrangements with the City for the City to cause such removal in accordance with the requirements of this section. If the property owner does not promptly eradicate the graffiti or make arrangements satisfactory to the City for eradication of the graffiti within ten (10)days of actual notice or within fourteen (14) days of mailed notice, City agents may do so in accordance with Section 8.05.050C.

B. Right of City to Remove with Owner's Consent. Whenever the City Manager or his/her designee determines that graffiti is so located on public or private property within the City so as to be capable of being viewed by persons utilizing any public right-of-way

or public place in the City, the City Manager or his/her designee is authorized to provide for the removal of the graffiti upon the following conditions:

1. In removing the graffiti, the painting or repair shall be limited to the minimum necessary to properly restore the defaced area.

2. Where a structure is owned by a public entity other than the City, the removal of the graffiti may be authorized only after securing the written consent of the public entity having jurisdiction over the structure.

3. Where a structure is privately owned, the removal of the graffiti by City personnel or by volunteers or a private contractor under the direction of the City may be authorized only after securing the written consent of the owner, agreement to reimburse the City for the costs of removal, and a release of the City from liability, on a form approved by the City Attorney. The City will use paint that is readily available and may not match the original color.

C. Abatement and Cost Recovery Proceedings Following Failure to Obtain Owner's Consent. If a responsible party fails to remove or cause the removal of the offending graffiti within the time herein specified, or if the City shall have requested consent to remove or paint over the offending graffiti and the responsible party shall have refused consent or failed to respond to request for entry on the terms of this section, the City shall commence abatement and cost recovery proceedings for the removal of the graffiti in accordance with Title 4.

1. Because prompt removal minimizes the blight created by graffiti and has been shown to be one of the greatest disincentives to graffiti proliferation, the City Manager is authorized to develop procedures and/or volunteer programs whereby City personnel or other persons under the direction of the City may enter onto private property for the purpose of removing and/or painting over the graffiti. Such a program shall include provisions requiring the City to first attempt notification of the affected property owners, and upon notification, provide them with an opportunity to promptly eradicate the graffiti.

2. Prior to the City removing graffiti as outlined under this Section 8.05.050C, the City shall first attempt to notify the affected property owners, and upon notification, providing them with an opportunity to promptly eradicate the graffiti. The City shall contact property owners requesting that the owners either eradicate the graffiti or make satisfactory arrangements for the eradication of the graffiti within ten (10) days of actual notice or fourteen (14) days of mailed notice. If property owners do not eradicate the graffiti or make arrangements satisfactory to the City for the eradication of the graffiti within this time period, a second notice shall be provided stating that, if the owners do not either eradicate the graffiti or make satisfactory arrangements for the eradication of the graffiti within five (5) days of actual notice or within seven (7) days of mailed notice,

City agents may enter the property and eradicate the graffiti at the property owner’s expense. Making satisfactory arrangements would include granting permission to the City to eradicate the graffiti at the property owner’s expense.

3. If the property owner(s) cannot be promptly contacted personally or by mail within ten (10) days of the first attempted notification, City agents may proceed to eradicate the graffiti. The City will attempt to closely match the color of paint used to cover the graffiti; however, the City Council recognizes that the paint used in such eradication efforts may not closely match the existing paint; however, the City Council finds that the eradication will not damage private property more than the damage that has already resulted from the existence of the graffiti. The eradication authorized by this section shall not, without property owner permission, extend to areas not readily visible to the general public.

4. In any situation where the City is compelled to remove the graffiti as provided in this Chapter, the City may proceed with abatement cost recovery from the property owner as outlined in Chapter 4.24- Recovery of Civil Penalties and Abatement Costs and as outlined and allowed under California Government Code Sections 38772 and 53069.3. In the event the graffiti is placed by a minor in violation of this Chapter, the parents of such minor shall be financially responsible for any fees or costs imposed in accordance with this Chapter.

8.05.060 - GRAFFITI – VIOLATIONS.

A. Any person knowingly and willfully violating the provisions of this chapter shall be deemed guilty of an infraction.

B. Except as provided in subsection (a), any person violating, or causing or permitting the violation of, this chapter shall be deemed guilty of a misdemeanor if a defendant has been convicted of three or more violations of this chapter within the twelve-month period preceding the commission of the offense alleged in the accusatory pleading. For this purpose, a bail forfeiture shall be deemed to be a conviction of the offense charged.

C. If a minor is personally unable to pay any fine levied for violating this chapter, the parent or legal guardian of the minor shall be liable for payment of the fine. A court may waive payment of the fine by the parent or legal guardian upon a finding of good cause.

D. Any individual found guilty of a violation of this section shall reimburse the City of Scotts Valley for any and all costs the City may incur in removing the graffiti. Such reimbursement shall be in addition to any other penalties imposed by the court pursuant to this section. If the violator is a minor, the parent or guardian shall also be responsible for such reimbursement.

E. In addition to the violations noted above, any violation of the provision of this Chapter may be cited in accordance with Chapter 4.14.

1. The administrative fine for an administrative citation issued for violation of Section 8.05.030 of this Chapter shall be as follows:
a. An administrative fine of one thousand dollars ($1,000.00) for the first violation in any one (1) year period;
b. An administrative fine of one thousand five hundred dollars ($1,500.00) for the second violation in any one (1) year period; and c. An administrative fine of two thousand dollars ($2,000.00) for the third and each subsequent violation.

2. The administrative fine for an administrative citation issued for violation of Section 8.05.040 of this Chapter shall be as follows:
a. An administrative fine of two hundred fifty dollars ($250.00) for the first violation in any one (1) year period;
b. An administrative fine of five hundred dollars ($500.00) for the second violation in any one (1) year period; and
c. An administrative fine of one thousand dollars ($1,000.00) for the third and each subsequent violation in any one (1) year period.” Section 3. CEQA COMPLIANCE. The City Council hereby finds that it can be seen with certainty that there is no possibility the adoption and implementation of this Ordinance may have a significant effect on the environment. The Ordinance is therefore exempt from the environmental review requirements of the California Environmental Quality Act pursuant to Section 15061(b)(3) of Title 14 of the California .

Section 4. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase or portion of this Ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

Section 5. To the extent the provisions of the Scotts Valley Municipal Code as amended by this Ordinance are substantially the same as the provisions of that Code as they read immediately prior to the adoption of this Ordinance, then those provisions shall be construed as continuations of the earlier provisions and not as new enactments.

Section 6. EFFECTIVE DATE. This ordinance shall be in full force and effect thirty (30) days from and after the date of its adoption.

Section 7. PUBLICATION. The City Clerk shall certify as to the adoption of this Ordinance and shall cause a summary thereof to be published within fifteen (15) days of adoption and shall post a certified copy of this Ordinance, including the vote for and against same, in the Office of the City Clerk, in accordance with Government Code Section 36933.

This Ordinance was introduced on the 7th day of May, 2025, and passed and adopted on the 21st day of May, 2025, at a duly held meeting of the City Council of the City of Scotts Valley by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
______________________________
Derek Timm, Mayor
ATTEST:
_________________________________
Cathie Simonovich, City Clerk

AGENDA ITEM 1.

DATE: 5/21/2025
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 5/21/2025
TO: Honorable Mayor and City Council
FROM: Stephanie Hill, Administrative Services Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Public Hearing to consider Resolution 1198.79 adopting proposed FY2025/26 User Fee Schedule and Charges

SUMMARY OF ISSUE
In 2024, the City of Scotts Valley engaged NBS to conduct an independent user fee study analysis of the City’s cost-based user fees and charges for planning, building, public works, recreation, police and administrative services. This study reviewed the current service delivery methods, staffing, and costs to determine the appropriate fee structures and costs of services provided for each service.

In general, fees related to building, police, public works and administrative services are typically set by agencies at or near full cost recovery. Planning fee cost recovery levels are set based on several considerations, such as economic development initiatives, the level and extent of undeveloped or potentially redeveloped property, and the development marketplace relative to other communities within the region.

Each year, typically as part of the budget process, the City reviews User Fees to ensure they remain clear, appropriate, and reflective of actual service costs. Proposed updates take into account local cost increases for the City as well as broader inflationary trends, including changes in the Consumer Price Index (CPI). For User Fees subject to a general percentage adjustment, a 4% increase is currently being proposed.

Key changes are noted below:
• Solicitors’ permits are now encompassed through the Business Licenses Ordinance process.
• Charging a fee for Tobacco Licensing pursuant to the Tobacco Retailer Licenses Ordinance.
• Updating security systems false alarms fee to charge when there are two or more per month.
• Engineering Design Review and Planning Development fees are based hourly for clarity purposes.
• Engineering Transportation/hauling permit fee language clarity.

The User Fee Schedule is subject to a public hearing prior to adoption. At the conclusion of the public hearing this evening, and subject to any modifications, the Council could then adopt the User Fee Schedule through approval of the attached resolution. Cal. Government Code §66017(a) requires that any fees associated with processing applications and permits relative to development projects (as defined) may not be effective sooner than 60 days after final action is taken on the fees after a public hearing. Other fees could go into effect immediately if the City Council so chose. Instead of implementing fees on mixed dates, staff are recommending that all fees and charges be effective on July 21, 2025.

Recreation fee updates are not included in this item. These fees are typically reviewed and adjusted at the beginning of the calendar year to better align with peak event planning.

FISCAL IMPACT
It is estimated that the increase will generate $50,000 per year and will be factored into the respective budgets.

STAFF RECOMMENDATION
It is recommended the City Council approve Resolution 1198.79 adopting the proposed FY2025/26 User Fee Schedule and Charges.

TABLE OF CONTENTS

1. Resolution User Fees and Charges FY2526

2. Exhibit A_User Fees FY2526

RESOLUTION NO. 1198.79

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY APPROVING THE USER FEES AND CHARGES SCHEDULE FOR FY 2025/26 WHEREAS, Resolution No. 1198.10 establishing a schedule of fees and charges (“Fees and Charges Schedule”) for city services was adopted by the City Council of the City of Scotts Valley on June 6, 1990; and
WHEREAS, the City Council has amended the Fees and Charges Schedule for city service by resolution from time to time since its original adoption; and WHEREAS, the City desires to amend the Fees and Charges schedule to reflect the services provided and updated costs of providing those service to the community; and WHEREAS, pursuant to Section 3.40.040(a) of the City’s Municipal Code, rates of fees and charges to be charged and collected in order to recover the percentage of costs reasonably borne in providing services shall be set by resolution, and pursuant to Section

3.40.050 and 3.40.060 of the Municipal Code, any new or increased charges are to be set after public hearing and notice as required; and
WHEREAS, notice of time and place of public hearing, including a general explanation of the matter to be considered, has been provided in compliance with the provisions of that ordinance; and
WHEREAS, the City Council has held a public hearing concerning the adoption of the proposed Fees and Charges Schedule for FY 2025/26 that is proposed to go into effect not earlier than July 20, 2025.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED as follows:

1. The Fees and Charges Schedule for FY 2025/26 do not exceed the estimated actual, reasonable cost of providing the service or performing the activity for which the fee is imposed.

2. The Fees and Charges Schedule for FY 2025/26 is hereby amended as stated in Exhibit A to this Resolution.

3. The resolution shall take effect 60 days following its adoption.

The above and foregoing resolution was duly and regularly adopted by the City Council of the City of Scotts Valley at a meeting held on the 21st day of May, 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Approved: ____________________________
Derek Timm, Mayor
Attest: ___________________________
Cathie Simonovich, City Clerk

Administrative / Miscellaneous Fees
Business License - New application fee per license [6] $ 290 $ 302 Business License Tax per license [1] See Ordinance See Ordinance Duplication - Digital copies per USB drive [2] At actual USB cost At actual USB cost Duplication - Photo copies each [2] $0.10 per page for
public records
$0.10 per page for
public records
Elections - Petition Filing Fee per filing [2] $ 200 $ 200 Entertainment Permit - Not on City property:

New application per permit [4] $ 701 $ 728
Renewal application per permit [4] $ 635 $ 660
Notary service fee (per signature) per signature [2] $ 15 $ 15 Occasional Sales Permit per permit $ 149 $ 154
Rental of Council chambers each [3] $ 33 $ 34
If non-profit each [3] $ - $ -
Returned check charges:

First returned check each [2] $ 25 $ 25
Each additional check each [2] $ 35 $ 35
Subpoena Summons Response per day [2,5] $ 275 $ 275
Other services with no fee listed per hour [7] $ 298 $ 309 [Notes]
[1]
[2]
[3]
[4]
[5]
[6]
[7]
Police Department Fees
Alarm Services: [1] $ -
Annual Registration per permit/per
year
$ 88 $ 92
Second or More False Alarm in One Month per occurrence $ 171 $ 177 Auto Abatement per request $ 258 $ 268
Auto Impound - Release of Stored Vehicles:

City Processing Fee per request $ 180 $ 187
Tow/Storage each [4] Actual Cost Actual Cost
Bingo License:

New per license [2] $ 88 $ 88
Renewal per license [2] $ 44 $ 44
Body Cam Video Release/Editing per request $ 350 $ 364
Proposed Amount
For services requested of City staff which have no fee listed in this fee schedule, the City Manager or the City Manager's designee shall determine the appropriate fee based on the established hourly rates for this department/division. Additionally, the City will pass-through to the applicant any discrete costs incurred from the use of external service providers if required to process the specific application.

Fee set per Business License Ordinance;
Fee Set by the State of California;
Fee for facility rental;
See Recreation fee schedule for event permits occurring on City property Should the actual cost of salary compensation plus travel expenses exceed the $ 275 per day threshold, the difference shall be due to the City by the requesting party. If the actual cost is less than $ 275 per day, then the City shall refund the difference.

Non-refundable. Separate fees from Police apply for massage, tobacco, and second hand dealer permits.

Fee Name Fee Type / Unit
Notes
Current Amount
E AExhibit A

Fee Name Fee Type / Unit Proposed Amount Notes
Current Amount
Clearance Letter (charged for Employment,
Licensing, and Certification Purposes Only) per request $ 29 $ 30 Firearms - CCW Standard Permit (2-year):

New per permit $ 1,241 $ 1,290
Renewal per permit $ 1,042 $ 1,083
Junior Police Academy (JPA) per participant $ 100 $ 104 Licenses:

Secondhand Dealer License per license $ 400 $ 416
Tobacco Licensing per license [5] No Charge $ 138
Massage Permit Fees: $ -
Massage Establishment Permit per permit $ 400 $ 416
Initial Application Per Therapist per application $ 267 $ 277 Special security service incurred in responding to
loud or unruly gathering following 1st response (per
minute)
per officer/ per
minute [3] $ 4 $ 4
Taxicab Driver's Permit per permit $ 88 $ 91
Uniformed Private Security:

Minimum 4 hours per request $ 456 $ 474
Each 15 minutes thereafter per 15 minutes $ 29 $ 29
Other services with no fee listed: [6]
Sworn per hour $ 114 $ 118
Non-Sworn per hour $ 114 $ 118
[Notes]
[1]
[2]
[3]
[4]
[5]
[6]
Planning Department Fees
Addressing Fee:

Minimum Fee - Up to 7 hours flat $ 2,750 $ 2,860
Hourly Rate - Over 7 hours hourly $ 393 $ 408
Application Intake & File Maintenance:

Minor or Singular Discretionary Permit
Applications (per planning application)
flat $ 786 $ 817
Major Discretionary Permits or Multiple
Applications Filed for One Project (per planning
application)
flat $ 1,572 $ 1,634
Annexation Fee:

Minimum Fee - Up to 35 hours flat $ 13,752 $ 14,302
Hourly Rate - Over 35 hours hourly $ 393 $ 408
Amendment:

Minimum Fee - Up to 10 hours flat $ 3,929 $ 4,086
Hourly Rate - Over 10 hours hourly $ 393 $ 408
Appeal Processing:

For services requested of City staff which have no fee listed in this fee schedule, the City Manager or the City Manager's designee shall determine the appropriate fee based on the established hourly rates for this department/division. Additionally, the City will pass-through to the applicant any discrete costs incurred from the use of external service providers if required to process the specific application.

Pursuant to SVMC 5.26.080, the number of false alarms is established through the user fee resolution.

Fee set per 326.5 of the Penal Code
Pursuant to SVMC 9.20.050, the Special Security Service fee is in addition to the fine for violating the SVMC.

Towing / Storage are charged separately at actual cost in addition to staff time; Pursuant to SVMC 5.22, Tobacco Retailer Licenses

Fee Name Fee Type / Unit Proposed Amount Notes
Current Amount
City Council flat [4]
25% of original
permit fee or
approved application
with minimum fee of
$393
25% of original
permit fee or
approved application
with minimum fee of
$408
Board of Appeals flat [4]
25% of original
permit fee or
approved application
with minimum fee of
$393
25% of original
permit fee or
approved application
with minimum fee of
$408
Bee Keeping Permit flat $ 393 $ 408
Certificate of Compliance:

Minimum Fee - Up to 10 hours flat $ 3,929 $ 4,086
Hourly Rate - Over 10 hours hourly $ 393 $ 408
Researched by City Attorney actual [5] Actual Cost Actual Cost CEQA REVIEW:

Environment Assessment flat $ 393 $ 408
Environmental Impact Report, Administration:

Minimum Fee - Up to 74 hours flat $ 29,076 $ 30,238
Hourly Rate - Over 74 hours hourly $ 393 $ 408
Consultants [3] Actual Cost Actual Cost
Mitigation Monitoring :

Minimum Fee - Up to 10 hours flat $ 3,929 $ 4,086
Hourly Rate - Over 10 hours hourly $ 393 $ 408
Mitigated Negative Declaration:

Minimum Fee - Up to 40 hours flat $ 15,716 $ 16,345
Hourly Rate - Over 40 hours hourly $ 393 $ 408
Consultants
City Staff Admin flat $ 3,929 $ 4,086
Consultants [3] Actual Cost Actual Cost
Negative Declaration:

Minimum Fee - Up to 20 hours flat $ 7,858 $ 8,172
Hourly Rate - Over 20 hours hourly $ 393 $ 408
Consultants
City Staff Admin flat $ 3,143 $ 3,269
Consultants [3] Actual Cost Actual Cost
Planning Department Fees
Notice of Determination:

City Filing Fee flat $ 589 $ 612
County Fee flat [2] As set by Santa Cruz
County
As set by Santa Cruz
County
Fish & Game Certification:

Filing Fee flat $ 786 $ 817
F & G Negative Declaration Fee flat [2] As set by Fish and Game
As set by Fish and
Game
F & G EIR Fee flat [2] As set by Fish and
Game
As set by Fish and
Game
Code Compliance (per hour) hourly $ 393 $ 408
Cultural Resource Alteration:

Minimum Fee - Up to 8 hours flat $ 3,143 $ 3,269
Hourly Rate - Over 8 hours hourly $ 393 $ 408

Fee Name Fee Type / Unit Proposed Amount Notes
Current Amount
Design Review:

Residential with Hillside - Up to 20 hours flat $ 7,858 $ 8,172 Hourly Rate - Over 20 hours hourly $ 393 $ 408
Residential - Up to 15 hours flat $ 5,894 $ 6,129
Hourly Rate - Over 15 hours hourly $ 393 $ 408
Commercial / Industrial - Up to 20 hours flat $ 7,858 $ 8,172 Hourly Rate - Over 20 hours hourly $ 393 $ 408
Sign Programs:

Minimum Fee - Up to 20 hours flat $ 7,858 $ 8,172
Hourly Rate - Over 20 hours hourly $ 393 $ 408
Free Standing Signs:

Major - Up to 10 hours flat $ 3,929 $ 4,086
Hourly Rate - Over 10 hours hourly $ 393 $ 408
Minor- Up to 6 hours flat $ 2,357 $ 2,451
Hourly Rate - Over 6 hours hourly $ 393 $ 408
Signs with Staff Level Review:

Major - Up to 5 hours flat $ 1,965 $ 2,043
Hourly Rate - Over 5 hours hourly $ 393 $ 408
Minor - Up to 2.5 hours flat $ 982 $ 1,021
Hourly Rate - Over 2.5 hours hourly $ 393 $ 408
Development Agreement:

Minimum Fee - Up to 35 hours flat $ 13,752 $ 14,302
Hourly Rate - Over 35 hours hourly $ 393 $ 408
Final Inspection:

Minimum Fee - Up to 6 hours flat $ 2,357 $ 2,451
Hourly Rate - Over 6 hours hourly $ 393 $ 408
General or Specific Plan Amendment:

Minimum Fee - Up to 35 hours flat $ 13,752 $ 14,302
Hourly Rate - Over 35 hours hourly $ 393 $ 408
General Plan Maintenance:

Applies to all building permits flat [4] 0.0055 per $1
building valuation

0.0055 per $1
building valuation
Historical Landmark Determination:

Minimum Fee - Up to 20 hours flat $ 7,858 $ 8,172
Hourly Rate - Over 20 hours hourly $ 393 $ 408
Home Occupation Review flat $ 295 $ 306
IPHCP Certificate of Inclusion flat $ 1,572 $ 1,634
Planning Department Fees
LAND DIVISIONS:

Land Division/Tentative map Entitlement (5 lots or
more):

Minimum Fee - Up to 35 hours flat $ 13,752 $ 14,302
Hourly Rate - Over 35 hours hourly $ 393 $ 408
Land Division / Final Map Review (5 lots or more):

Minimum Fee - Up to 20 hours flat $ 7,858 $ 8,172
Hourly Rate - Over 20 hours hourly $ 393 $ 408
Minor Land Division / Tentative Map Entitlements (4
lots or less):

Minimum Fee - Up to 30 hours flat $ 11,787 $ 12,258
Hourly Rate - Over 30 hours hourly $ 393 $ 408

Fee Name Fee Type / Unit Proposed Amount Notes
Current Amount
Minor Land Division / Parcel Map Review (4 lots or
less):

Minimum Fee - Up to 10 hours flat $ 3,929 $ 4,086
Hourly Rate - Over 10 hours hourly $ 393 $ 408
Lot Line Adjustment Review:

Minimum Fee - Up to 2 hours flat $ 786 $ 817
Hourly Rate - Over 2 hours hourly $ 393 $ 408
Planned Development:

Minimum Fee - Up to 26 hours flat $ 10,216 $ 10,624
Hourly Rate - Over 26 hours hourly $ 393 $ 408
Preliminary Review flat $ 9,823 $ 10,215
Public Hearing Notice and Radius Noticing: flat
City Council Meeting $ 786 $ 817
Planning Commission Meeting $ 786 $ 817
Recordation Fee:

City Filing Fee flat $ 589 $ 612
County Recorder Fee (subject to change) flat [2] As determined by Santa Cruz County
As determined by
Santa Cruz County
Road Name Change flat $ 2,750 $ 2,860
Time Extension:

Minimum Fee - Up to 12 hours flat $ 4,715 $ 4,903
Hourly Rate - Over 12 hours hourly $ 393 $ 408
Heritage Tree Designation
Minimum Fee - Up to 15 hours flat $ 5,894 $ 6,129
Hourly Rate - Over 15 hours hourly $ 393 $ 408
Tree Removal Permit -
Heritage Tree
Minimum Fee - Up to 15 hours flat $ 5,894 $ 6,129
Hourly Rate - Over 15 hours hourly $ 393 $ 408
Protected Tree flat $ 131 $ 136
Use Permit:

Major (excluding residential) - up to 20 hours flat $ 7,858 $ 8,172 Hourly Rate - over 20 hours hourly $ 393 $ 408
Minor - up to 10 hours flat $ 3,929 $ 4,086
Hourly Rate - over 10 hours hourly $ 393 $ 408
Variance Application:

Minimum Fee - Up to 30 hours flat $ 11,787 $ 12,258
Hourly Rate - Over 30 hours hourly $ 393 $ 408
Planning Department Fees

ZONING FEES
Zone Change / Ordinance Amendment:

Minimum Fee - Up to 26 hours flat $ 10,216 $ 10,624
Hourly Rate - Over 26 hours hourly $ 393 $ 408
Plan Check:

Hillside flat $ 1,965 $ 2,043
Major flat $ 3,143 $ 3,269
Minor flat $ 982 $ 1,021
Over the counter flat $ 196 $ 204
Research Letters:

Minimum Fee - Up to 1 hours flat $ 393 $ 408
Hourly Rate - Over 1 hours hourly $ 393 $ 408

Fee Name Fee Type / Unit Proposed Amount Notes
Current Amount
Other services with no fee listed hourly [1] $ 393 $ 408 [Notes]
[1]
[2]
[3]
[4]
[5]
Building Department Fees

NEW CONSTRUCTION, ADDITIONS, REMODELS
Building Permits - New Construction, Addition,
Remodels. Includes associated Mechanical,
Plumbing, Electrical:
$1 - $5,000 minimum fee $ 1,051 $ 1,093
5,001 base fee @
$5,001 $ 1,051 $ 1,093
each additional $1,000 or fraction thereof each add'l $1000 $ 33 $ 34 25,001 base fee @
25,001 $ 1,720 $ 1,789
each additional $1,000 or fraction thereof each add'l $1000 $ 37 $ 38 100,001 base fee @
$100,001 $ 4,461 $ 4,639
each additional $1,000 or fraction thereof each add'l $1000 $ 10 $ 10 500,001 base fee @
$500,001 $ 8,460 $ 8,798
each additional $1,000 or fraction thereof each add'l $1000 $ 22 $ 23 1,000,001 base fee @
$1,000,001 $ 19,689 $ 20,476
each additional $1,000 or fraction thereof each add'l $1000 $ 2 $ 2 5,000,001 base fee @
$5,000,001 $ 29,246 $ 30,415
each additional $1,000 or fraction thereof each add'l $1000 $ 4 $ 4 Building Plan Check and Processing (deposit) - New
Construction, Addition, Remodels. Includes
associated Mechanical, Plumbing, Electrical
$1 - $5,000 minimum fee $ 796 $ 828
5,001 base fee @
$5,001 $ 796 $ 828
each additional $1,000 or fraction thereof each add'l $1000 $ 20 $ 20 25,001 base fee @
25,001 $ 1,195 $ 1,242
For services requested of City staff which have no fee listed in this fee schedule, the City Manager or the City Manager's designee shall determine the appropriate fee based on the established hourly rates for this department/division. Additionally, the City will pass-through to the applicant any discrete costs incurred from the use of external service providers if required to process the specific application.

Fee Set by the State of California or County of Santa Cruz; Consultant costs are charged separately at actual cost in addition to staff time; Fee set by City Policy;
Attorney costs are charged separately at actual cost in addition to staff time;

Fee Name Fee Type / Unit Proposed Amount Notes
Current Amount
each additional $1,000 or fraction thereof each add'l $1000 $ 23 $ 23 100,001 base fee @
$100,001 $ 2,920 $ 3,037
each additional $1,000 or fraction thereof each add'l $1000 $ 8 $ 7 500,001 base fee @
$500,001 $ 5,973 $ 6,212
each additional $1,000 or fraction thereof each add'l $1000 $ 28 $ 29 1,000,001 base fee @
$1,000,001 $ 20,177 $ 20,984
each additional $1,000 or fraction thereof each add'l $1000 $ 0 $ - 5,000,001 base fee @
$5,000,001 $ 21,239 $ 22,088
each additional $1,000 or fraction thereof each add'l $1000 $ 4 $ 4 Building Department Fees

MINOR IMPROVEMENT PROJECTS /

MISCELLANEOUS PERMITS
Demolition permit per permit $ 743 $ 773
Change of Occupancy Permit per permit $ 850 $ 883
Re-roof permit per permit $ 425 $ 441
Septic tank inspection per permit $ 1,062 $ 1,104
Sewer Lateral Connection Inspection per permit $ 956 $ 993 Solar / PV Permit: [2]
Residential
1-15 kWh per permit $ 450 $ 450
Over 15 kWh ea. 1 kWh $ 15 $ 15
Residential - Thermal
1-10 kWth per permit $ 450 $ 450
Over 10 kWth ea. 1 kWth $ 15 $ 15
Commercial
1-50 kWh per permit $ 743 $ 773
51-250 kWh ea. 1 kWh $ 7 $ 7
250 kWh per permit $ 1,828 $ 1,901
Over 250 kWh ea. 1 kWh $ 5 $ 5
Commercial - Thermal
1-30 kWth per permit $ 743 $ 773
31 - 260 kWth ea. 1 kWth $ 7 $ 7
260 kWth per permit $ 1,828 $ 1,901
Over 260 kWth ea. 1 kWth $ 5 $ 5
Window Projects under $5,000 BPV (projects >$5,000
BPV use valuation permit scale):

Retrofit per permit $ 300 $ 312
Replacement per permit $ 500 $ 520
MECHANICAL / PLUMBING / ELECTRICAL Standalone Permits (i.e. no framing)

Fee Name Fee Type / Unit Proposed Amount Notes
Current Amount
Standalone Water Heater Permit per permit $ 170 $ 176
Residential/Simple Standalone MEP Permit (fee
includes up to 3 from the list below) per permit $ 265 $ 276 Simple Mechanical Items: [7]
HVAC change out - existing dwelling
Ventilation fan connected to a single duct
Duct systems
Miscellaneous mechanical (wall furnace,
condensing units, heat pump, mini-split, gas
outlet/gas test, etc.)
Other simple mechanical
Simple Electrical Items: [7]
Receptacle, switch, and lighting outlets
Lighting fixtures
Pole or platform-mounted lighting fixtures
Residential appliances
Motor or sump pump
Services of 600 volts or less and not over 400
amperes in rating
Miscellaneous apparatus, conduits, and
conductors
Portable generators less than 10,000 W
Temporary power panel/service
Other simple electrical
Building Department Fees
Simple Plumbing Items: [7]
Plumbing fixtures
Building sewer
Rainwater systems
Water piping and/or water treating equipment
Repair or alteration of drainage or vent piping
Gas test
Gas outlets
Residential remodel/repairs - bathrooms
Solar water systems
Sewer lateral inspection
Other simple plumbing
Residential Standalone MEP Permits >3 Items and
Complex/Commercial Standalone MEP Permits per permit [8] Per Valuation Table Per Valuation Table

OTHER MISCELLANEOUS FEES AND CHARGES
Other misc. inspections & reinspections per inspection $ 212 $ 220 Plan Review - Additional as required by changes,
additions or revisions to plans
First hour per review $ 248 $ 257
Each Additional 30 minutes per 1/2 hour $ 106 $ 110
Inspections outside of normal business hours per hour - 4 hour minimum $ 228 $ 237
Planning Application Review per review $ 425 $ 441
Use of Consultants per project [6] Actual Costs Actual Costs Appeal Processing-Building:

Fee Name Fee Type / Unit Proposed Amount Notes
Current Amount
City Council Appeals per appeal -
minimum [1]
25% of original
permit fee or
approved application
subject to minimum
fee of $206.
25% of original
permit fee or
approved application
subject to minimum
fee of $220.

Board of Appeals appeal per appeal -
minimum [1]
25% of original
permit fee or
approved application
subject to minimum
fee of $206.
25% of original
permit fee or
approved application
subject to minimum
fee of $220.

Building Permit Extension of Expired Permit per permit $ 159 $ 165 Building Permit Reinstatement of Expired Permit:

No Changes to Scope of Project per permit $ 159 $ 165
Changes to Scope of Project Required per permit [3] 50% of original permit fee
50% of original
permit fee
General Plan Maintenance per permit [3]
.0055 per $1 building
valuation (all building
permits)
.0055 per $1 building
valuation (all building
permits)
Green Building Education Fund per permit [3]
.0028 per $1 building
valuation (all building
permits)
.0025 per $1 building
valuation (all building
permits)
Permit Technology Fee per permit [5]
4% of total value of
permit fees assessed
4% of total value of
permit fees assessed
State Building Standards Fee (CSBC) per permit [3]
.00004 per $1
building valuation, $1
min
.00004 per $1
building valuation, $1
min
Building Department Fees
Strong Motion Instrumentation Program (SMIP):

Commercial/Industrial per permit [4]
.00028 per $1
building valuation, $
.50 min
.00028 per $1
building valuation, $
.50 min
Residential per permit [4]
.00013 per $1
building valuation, $
.50 min
.00013 per $1
building valuation, $
.50 min
Other services with no fee listed per hour [5] $ 212 $ 220 [Notes]
[1]
[2]
[3]
[4]
[5]
[6]
[7]
[8]
Engineering Department Fees

ENCROACHMENT PERMITS
Non Construction Items per project $ 334 $ 347
Level A per project $ 669 $ 695
Consultant costs are charged separately at actual cost in addition to staff time; Items in this list are covered by the "Residential/Simple Standalone MEP Permit" fee Fees will be set by building valuation scale above
Set by City Policy: 25% of original permit fee or approved application subject to minimum fee; Fee set by State GC 66015. Recommended fees cannot exceed maximum shown Set by City Policy;
Fee Set by State;
For services requested of City staff which have no fee listed in this fee schedule, the City Manager or the

Fee Name Fee Type / Unit Proposed Amount Notes
Current Amount
• Sidewalk, curb, or gutter repairs up to 20 linear feet on residential streets, collector streets or arterial
streets
• Utility service repairs on residential streets
• Utility service repairs on collector streets -
trenchless
Level B per project $ 2,341 $ 2,434
• Sidewalk, curb, or gutter repairs over 20 linear feet on collector streets or arterial streets
• Utility service repairs on collector streets
• Utility service repairs on arterial street - trenchless • New facilities and trenchless projects (utility
connections, sidewalk, etc.) on residential streets
Level C per project $ 3,344 $ 3,477
• Sidewalk, curb, or gutter repairs on collector streets or arterial streets with lane closures
• Utility service repairs on arterial streets
• New facilities and trenchless projects (utility
connections, sidewalk, etc.) on collector streets
• Utility main installation open trench (water, sewer,
gas) on residential streets
Level D per project $ 8,360 $ 8,694
• New facilities and trenchless projects (utility
connections, sidewalk, etc.) on arterial streets
• Utility main installation open trench (water, sewer,
gas) on collector streets
Level E per project $ 13,376 $ 13,910
• Utility main installation open trench (water, sewer,
gas) on arterials streets
• Any project with night work
Permit Extensions per request $ 167 $ 173
Utility - Annual Blanket Permit per request [3] $ 1,170 $ 1,217

LAND DEVELOPMENT ENGINEERING FEES
Lot Line Adjustment or Merger:

Base Fee per project $ 167 $ 173
Recording Fee per record-ation $ 167 $ 173
Certificate of Correction each $ 1,003 $ 1,043
Certification of Compliance each $ 669 $ 695
Easement/Abandonment Request per request $ 1,003 $ 1,043 Engineering Department Fees

PLANNING APPLICATION REVIEW/ SUPPORT
Annexation per project $ 669 $ 695
Design Review:

Other than Single-Family Residential - Up to 4
hours flat / hourly [7] $ 1,338 $ 1,391
Single-Family Residential/ADU - Up to 1 hr flat / hourly [7] $ 334 $ 347 Development Agreement per project $ 669 $ 695
Environmental Assessment per project $ 1,003 $ 1,043

Fee Name Fee Type / Unit Proposed Amount Notes
Current Amount
Neg Dec / Mitigated Neg Dec per project $ 669 $ 695
Environmental Impact Report, Administration per project $ 1,003 $ 1,043 General Plan Amendment per project $ 334 $ 347
Land Divisions (Tentative Map Entitlement Review):

Land Division / Tentative Map Entitlement Review
(5 lots or more) per project $ 1,338 $ 1,391
Minor Land Division/ Tentative Map Entitlement
Review (4 lots or less) per project $ 1,003 $ 1,043
Planned Development - Up to 4 hrs flat / hourly [7] $ 1,338 $ 1,391 Tentative Map Extension / Modification per project $ 669 $ 695 Use Permit:

Major (excluding single family residential) per project $ 1,170 $ 1,217 Minor per project $ 334 $ 347
Variance per project $ 334 $ 347
Zone Change / Zoning Ordinance Amendment per project $ 334 $ 347 Other Planning related reviews per hour $ 334 $ 347

OTHER ENGINEERING FEES
Final/Parcel Map or Amending Parcel Map Check:

First 4 lots per project $ 2,341 $ 2,434
Over 4 Lots per lot $ 836 $ 869
City Surveyor Fee
Deposit for
actual City
Surveyor
[4] $ 4,000 $ 4,000
Improvement Plan Review per page $ 502 $ 521
Improvement Permit/Inspection:
10,000 base fee @
$10,000 $ 2,006 $ 2,086
each additional $1,000 or fraction thereof each add'l $1000 $ 117 $ 121 50,000 base fee @
$50,000 $ 6,688 $ 6,955
each additional $1,000 or fraction thereof each add'l $1000 $ 67 $ 69 100,000 base fee @
$100,000 $ 10,032 $ 10,433
each additional $1,000 or fraction thereof each add'l $1000 $ 33 $ 34 500,000 base fee @
$500,000 $ 23,408 $ 24,343
each additional $1,000 or fraction thereof each add'l $1000 $ 20 $ 20 1,000,000 base fee @ $1M $ 33,440 $ 34,777
each additional $1,000 or fraction thereof each add'l $1000 $ 33 $ 34 Engineering Department Fees
Agreements per project $ 669 $ 695
Reversion to Acreage per project $ 669 $ 695
Revision to Plan Check for previously approved
projects, or for 4th and subsequent submittal on a
single project
per revision $ 334 $ 347
Storm Water Compliance Project Plan Review: per project Tier 1 $ 334 $ 347

Fee Name Fee Type / Unit Proposed Amount Notes
Current Amount
Tier 2 $ 836 $ 869
Tier 3 - City Admin Cost (consultant costs are
passed through to applicant) - deposit $ 4,347 $ 4,521
Tier 4 - City Admin Cost (consultant costs are
passed through to applicant) - deposit $ 4,347 $ 4,521
Review of Annual Reports of privately maintained
post-construction treatment devices per report $ 334 $ 347 Storm water Inspection per inspection $ 669 $ 695
Storm Water Pollution Prevention Plan (SWPPP) per project $ 669 $ 695 Transportation/Hauling:

Per Trip Fee per trip [6] $ 16 $ 16
Oversize/Heavy Load Permit Fee per trip [6] $ 167 $ 173 Hourly Rates:

Engineering Services per hour [1] $ 334 $ 347
Inspection Services per hour [1] $ 334 $ 347
Miscellaneous Services per hour [1] $ 334 $ 347
Peer Review by City consultant per project [5] Actual Cost Actual Cost Records Research - Engineering per request $ 334 $ 347

WASTEWATER
Permits:

Direct Discharge Permit per permit $ 2,675 $ 2,782
Other Wastewater Fees:

Wastewater stoppage investigation per instance $ 1,338 $ 1,391 Discharge report review per report $ 669 $ 695
Permit Technology Fee - Applies to all permits per permit [2] 4% of total value of
permit fees assessed
4% of total value of
permit fees assessed
[Notes]
[1]
[2]
[3]
[4]
[5]
[6]
[7]
Actual costs to the City are billed to applicant as work is performed.

For services such as soils, water, traffic, parcel or final map review, etc. Actual costs to the City are billed to applicant as work is performed.

Per trip fee is per Vehicle Code section 35795(b)(1). Permit fee is for City review.

Flat fee covers up to stated hours. Additional time is billed at the hourly rate.

For services requested of City staff which have no fee listed in this fee schedule, the City Manager or the City Manager's designee shall determine the appropriate fee based on the established hourly rates for this department/division. Additionally, the City will pass-through to the applicant any discrete costs incurred from the use of external service providers if required to process the specific application.

Set by City Policy;
Administrative Processing Fee only. Actual costs to the City are billed to applicant as work is performed.

Annual deposit to be determined by City

AGENDA ITEM 1.

DATE: 5/21/2025
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 5/21/2025
TO: Honorable Mayor and City Council
FROM: Rodolfo Onchi, Public Works Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Five-Year Capital Improvement Plan for Fiscal Year 2025-2026 to Fiscal Year 2029-2030

SUMMARY OF ISSUE
The Capital Improvement Program (CIP) is a list of the proposed projects recommended for planning, initiation, or construction during the ensuing fiscal year(s). The CIP is developed by the Public Works Department as a five-year program and updated annually.

Public Works has prepared the attached five-year CIP encompassing fiscal years 2025-26 to 2029-30. The program is broken down by fiscal year, starting with FY 2025-26.

Projects have been given a priority level and have been categorized as an A, B, or C priority. • Priority A - projects essential/critical to health and safety or legal/regulatory requirements. • Priority B - projects important to maintaining health and safety or maintaining quality of life, but not critical.
• Priority C - projects deferrable and would only be implemented to the extent that higher priority projects are first funded.

Starting in FY 25-26, projects are broken into two main components:
• Major Capital Projects, those of typically large-scale or one-time projects with longer useful life spans
• Capital Outlay, those of typically deferred maintenance, vehicle/equipment replacements, technology upgrades, and smaller facility repairs.

Specifically, this Five-Year CIP Plan addresses numerous City Council priorities, including:
• Expanding the existing tertiary treatment system and adding an MBR (membrane bioreactor) package plant to prevent process upsets and meet the City’s recycled water demand.
• Improve roadway conditions with a focus on collector streets as identified in the City’s Pavement Management Program.
• Advance active transportation planning, including the redesign of Scotts Valley Drive,

Granite Creek Overpass, and Mount Hermon Road.
• Explore options for City building spaces to meet the future needs of the City.

Staff successfully completed several CIP projects in FY 24/25 including:
• Transportation/Roads:
o Bean Creek slide repair (Road & Lower Slope)
o Sunridge drainage improvements
o Striping refresh
o Mt Hermon signal coordination
• Wastewater Treatment Plant:
o Shaftless screw conveyer
o Aeration Basin Repairs
o Return activated sludge (RAS) pump replacement
o PLC/SCADA upgrades
• Parks:
o Fence at Siltanen softball field
o Skate Park fence replacement
o Lodato park improvements
o New tractor and mower purchases
o Tennis courts resurfacing
• Technology
o Computerized maintenance management software
FY 25/26 Planned Activities:
• Transportation/Roads:
o Bean Creek slide repair (Road & Lower Slope)
o Street resurfacing and repair
o Granite Creek culvert repair
o Mount Hermon Bike/Ped improvements
o Scotts Valley Dr Bike/Ped improvements
o Granite Creek overcrossing improvements (Design)
• Wastewater Treatment Plant
o Flow equalization structure pipeline repairs
o Clarifier superstructure and walkways replacement
o Suzanne lift station repairs
o Sewer collection system pipeline upgrades
o Replace dump truck
o Wastewater Master Plan
o Generator transfer switch
o MBR 80% design
• Parks
o Skypark Play Structure Replacement (big kids)
o Shugart park buildout (design)
o Park ADA improvements
o Lighting projects

o Hocus Pocus basketball resurfacing
• Technology
o IT Network Firewall Replacement

The Five-Year CIP was presented to the Planning Commission at their regularly scheduled meeting on May 15, 2025, for review regarding the plan’s consistency with the City’s General Plan. The Planning Commission and staff have found consistency with the Scotts Valley General Plan for the fiscal year 2025-26 proposed CIP. The final Five-Year CIP will be included as part of the FY 2025-26 Annual Budget, which is scheduled for adoption on June 04, 2025.

FISCAL IMPACT
There is no fiscal impact related to the discussion of the draft Five-Year CIP. Projects are adopted and funded in the fiscal year in which they are programmed. Funding sources have been defined for projects listed in the FY 2025-2026 project year.

STAFF RECOMMENDATION
It is recommended that the City Council provide policy direction on the proposed Five-Year CIP. Subject to City Council direction, staff will make the necessary changes to the Five-Year CIP and incorporate the revised draft into the FY 2025-2026 Annual Budget.

TABLE OF CONTENTS

1. Five-Year Capital Improvement Plan FY25-30

Priority Description Funding Source FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 A Wastewater Master Plan WWTP-C $ 350,000.00 $ - $ - $ - A Clarifier Superstructure & Walkways WWTP-C $ 550,000.00 $ - $ - B Effluent Pump Replacement WWTP-C $ 275,000.00 $ 275,000.00 $ 275,000.00 A Collection System Lift Stations WWTP-C $ 200,000.00 $ 50,000.00 $ 50,000.00 $ 50,000.00 A Collection System Pipeline Upgrades WWTP-C $ 300,000.00 $ 300,000.00 $ 300,000.00 A MBR Upgrade WWTP-C $ 250,000.00
$ 1,925,000.00 $ 625,000.00 $ 625,000.00 $ 50,000.00
A Annual Street Maintenance/Resurfacing GT/SB1/Meas D $ 1,500,000.00 $ 1,000,000.00 $ 1,000,000.00 B Janis Way Digout, Overlay, Sidewalk, Bike Lanes Measure D $ 250,000.00 A Mount Hermon Road Improvements Measure D/ RTC Grant $ 723,000.00 A Bean Creek Road Pavement Rehab - Phase 2 Measure D $ 300,000.00 B Lockwood Lane Street Improvements Measure D $ 100,000.00 A Granite Creek Overcrossing RSTPX/SB-1 $200,000 $523,000 B Scotts Valley Drive - Pedestrian Safety Street Lighting CIP $ 300,000.00 A Traffic Signal Upgrade CIP $250,000 $250,000
A Scotts Valley Drive Corridor Improvements RTC/SB1/Measure D $ 1,500,000.00 $ 3,923,000.00 $ 1,823,000.00 $ 600,000.00 $ 1,300,000.00 $ 250,000.00 A Storm Drain Trash Capture System CIP $150,000 $200,000 B Pinecone Drive Draining Improvements CIP $25,000 $100,000 A * Scotts Valley Drive - Culvert Repair CIP $150,000 $850,000 A *Granite Creek - Culvert Repair CIP $ 100,000.00
A North Scotts Valley Drive (South Of Redwood Vista) - CIP $ 30,000.00 $ 200,000.00 B Hacienda Road Storm drain extension CIP $ 100,000.00
$ 375,000.00 $ 1,130,000.00 $ 400,000.00 $ - $ -
A Skypark Play Structure Replacement HUD $ 757,000.00
A Shugart Park Buildout Parks DIF $500,000 $2,154,863
$ 1,257,000.00 $ 2,154,863.00 $ - $ - $ -
A Public Works Facility Improvements CIP $200,000 $1,300,000 $ - $ - $ - $200,000 $1,300,000 $0 $0 $0
$ 7,680,000.00 $ 7,032,863.00 $ 1,625,000.00 $ 1,350,000.00 $ 250,000.00 Priority Description Funding Source FY 2025-26
B Generator Transfer Switch and UPS upgrades WWTP-C $ 40,000.00 B Wastewater Dump Truck WWTP-C $ 200,000.00
B Breaker Replacement: Thermographic / Neta WWTP-C $ 100,000.00 A Annual Citywide Street Striping1 Gas Tax $ 100,000.00 A IT Network Firewall Replacement Equip. Replacement $ 150,000.00 C Equipment Trailer Equip. Replacement $ 27,500.00
C Tractor Implements Equip. Replacement $ 25,000.00
A Police Patrol Vehicle Police SLES $ 80,000.00
B 5 Electric gate repair/replacements Equip. Replacement $ 30,000.00 C ADA Improvements - Phase 1 Lennar $ 116,300.00
B Recreation Building Exterior Paint/Siding Lennar $ 100,000.00 B Parks Lighting Project Lennar $ 65,000.00
B Basketball Courts Resurfacing Hocus Pocus Lennar $ 50,000.00 B Tennis Court Lights Lennar $ 45,000.00
B Community Center Doors Lennar $ 35,000.00
B Siltanen Retaining Wall Lennar $ 30,000.00
B Parks Buildings Roofing Measure Q $ 50,000.00
C Siltanen Gazebo Measure Q $ 45,000.00
B Glenwood Retain Wall Culvert Measure Q $ 25,000.00
N/A Maintenance Vac Truck Equip Replacement *
N/A Boom Truck Equip. Replacement *
N/A Police Dept Locker Room Police Build.DIF *
N/A Siltanen Park - Bleacher Upgrades / Replacements Future Measure Q * N/A Community Center Floors Unfunded *
N/A Community Center Paint Unfunded *
N/A Macdorsa Repaving Unfunded *
N/A Siltanen Snack Shack Unfunded *
N/A Skypark Park Irrigation System Replacement Unfunded * N/A ADA Improvements - Phase 2 Unfunded *
N/A SV Drive Lights Unfunded *

CAPITAL OUTLAY - GOVERNMENT FUNDS

CAPITAL OUTLAY - FUTURE UNFUNDED PROJECTS
*Specific year and funding sources have not been identified

MAJOR CAPITAL PROJECTS
Parks TOTAL
General Facilities
General Facilities TOTAL
Storm Drains TOTAL
Parks
Transportation
Wastewater TOTAL
Storm Drains
Wastewater
Transportation TOTAL

CAPITAL OUTLAY PROJECTS

CAPITAL OUTLAY - WASTEWATER ENTERPRISE FUNDS

AGENDA ITEM 2.

DATE: 5/21/2025
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 5/21/2025
TO: Honorable Mayor and City Council
FROM: Stephanie Hill, Administrative Services Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Presentation of the Proposed Fiscal Year 2025-26 Budget, LongRange Financial Forecast, and Fund Matrix

SUMMARY OF ISSUE
This is the FY 2025-26 Draft Budget presentation for the City Council’s consideration. This budget includes a long-range financial forecast and a detailed analysis of the General Fund, the City’s primary operating fund.

The City’s budget is maintained through the OpenGov platform. This allows residents, elected officials, and other stakeholders to explore the City’s budgets online. It provides interactive displays, current and historic revenue and expenses. This financial transparency platform has been deployed as a resource for stakeholders as part of the City’s ongoing initiative to promote and enhance public transparency in local government.

To assist with the development of the FY 2025-26 Proposed Budget, the City Council has provided policy and budget direction in the following ways:
• FY 2024-25 Mid-Year Budget Amendments: On February 5, 2025, City Council reviewed and authorized mid-year budget amendments by approving the FY 2024-25 Amended Budget.
• Strategic Planning Goals: City Council held a special meeting on February 6-7, 2025 to discuss the Strategic Plan Goals and then establish the City’s Biannual Strategic Planning Goals on February 19, 2025, which have been incorporated into the FY 2025- 26 Proposed Budget.
• Guiding Budget Principles: City Council adopted annual Guiding Budget Principles on March 5, 2025, to provide principles for numerous financial policy areas. • Capital Improvement Projects (CIP) Plan: The Planning Commission reviewed the CIP on May 15, 2025, for consistency with the City’s General Plan. City Council reviewed the proposed CIP today, on May 21, 2025. Upon adoption of the FY 2025-26 Annual Budget, the City Council will have reviewed and approved the Five-Year Capital Improvement Project Plan.
• City Council Budget Subcommittee: Staff have been meeting with the City Council Budget Subcommittee, comprised of the Mayor and Vice Mayor, to review, in detail, all aspects of the FY 2025-26 Proposed Budget. The meetings involved representatives

from City departments discussing operational needs and service demands.

Budget Document and Overview
The presentation document will summarize the FY 2025-26 Proposed Budget and highlight key areas. The City’s overall budget plan continues to target service level restoration and reflects expected long-term expense levels to maintain core services. Part of the review was a deep dive into the nature, sources, and uses of the various funds. Staff identified better utilization of certain funds and is proposing a more robust tracking, allocation, and transfer process to ensure special revenue funds are being utilized. This ranges from force accounting for engineering staff time on capital projects, better general ledger tracking of projects that have special revenue funds available for transfer activity, and other directly chargeable activities.

The City is presenting a balanced budget. Governmental revenue is $24.1 million, with $22.7 million in operating expenses and $6.7 million in capital projects. Wastewater Enterprise revenue is $6.8 million, with operating and capital at $6.8 million.

The General Fund is projecting an ending fund balance of $2.5 million, or 11%, which is below the minimum reserve level. The City is still awaiting $2.2 million reimbursement from the Federal government for the FY22/23 storms that severely damaged two roads. We are not anticipating reimbursement until later in 2026.

The Wastewater Fund is recognizing reimbursement of a long-term loan from the prior Redevelopment Agency, which will help fund capital projects.

Long-Range Financial Planning
The FY 2025-26 Proposed Budget incorporates analysis on the overall financial health of the City, with great emphasis on the performance and future needs of the General Fund as the City’s largest funding source. The FY 2025-26 Proposed Budget incorporates Council priorities, including pursuing revenue measures, strategic thinking, and advancement with the Town Center.

The long-range financial analysis concludes by highlighting that voter-adopted Measure Z is infusing necessary stability in the budget, with caution, as sales tax trends are showing a flat future with the current economy. Additionally, Measure X passed which modernized the business license tax. FY 2025-26 is the first year of Measure X implementation, which was written to be a phased in approach of ~50% in year one. As business license renewals are completed, the City will have more information on the forecasted Measure X revenue impacts.

Fiscal Sustainability Planning
In accordance with the Guiding Budget Principals, any structural gap in a long-term financial forecast needs to be addressed with clear actionable decision points. The current 10-year Long-Range forecast continues to show a budget deficit. While the deficit has been showing improvement, there is still future planning needed. Below outlines the proposed actions:

1. At or before the FY 2025-26 Mid-Year review, present forecast results from the Measure X business license tax implementation.

2. Review a Transient Occupancy Tax (TOT) update for the 2026 election cycle. The City’s

current TOT rate is 11%, while all other jurisdictions in Santa Cruz County are at 12%.

3. FY 2025-26 removed a proposed full-time equivalent (FTE) position. The current forecast model includes 1 new FTE in each of the subsequent three fiscal years (3 FTE total). Based on other results, these may need to be further delayed. This will be reviewed prior to each budget. Eliminating all future FTE hires may help resolve the deficit by 2033; however, this approach risks undermining service levels and is not recommended as the only solution.

Transfers
Transfers refer to the movement of funds between different accounts or funds within the City’s financial structure. These transfers are used to allocate resources where they are most needed, ensure balanced funding across operations, and support specific purposes such as capital projects, debt repayment, or special projects. Unlike direct expenditures on goods and services, transfers do not represent spending on external vendors but rather reflect internal reallocations of financial resources. By including these transfers in the budget package, the City provides transparency into how it strategically manages and prioritizes financial resources across departments and programs.

Capital Improvement Projects
The overall capital improvement budget for FY 2025-26 is $9 million. The City is proposing viewing capital projects in two categories:
• Major Capital Projects - These are large-scale, one-time investments that typically involve significant planning, design, and construction. They often have long useful lives, impact community infrastructure, and exceed a defined cost threshold (e.g., $100,000 or more).
• Capital Outlay - This category includes routine, yet essential, capital investments that support operations but do not rise to the level of a major capital project. These items are often recurring and ensure that existing assets remain safe, functional, and efficient.

City-wide Fund Review
The City currently maintains a variety of municipal funds, each with specific purposes and revenue sources. Over time, the categorization and usage of these funds has evolved. As part of our financial transparency and accountability initiative, staff conducted a comprehensive review of all City funds. The objective was to ensure each fund is necessary, properly categorized, clearly defined in purpose, and in compliance with financial guidelines.

The following identifies the high-level changes. Attached is the full matrix for review and any further discussion. Staff will be recommending a resolution at the next Council meeting to formally adopt these changes that will go into effect for FY 2024-25 and on. • Formally close out funds that are no longer in use or have minimal balances that could be transferred to a similar purpose fund.
• Creation of new funds for specific or required tracking purposes. • Categorize Recreation like funds to roll under the General Fund. • Overall fund matrix to confirm category, fund uses, and interest-earning activity.

FISCAL IMPACT
There is no fiscal impact associated with the review of the FY 2025-26 Proposed Budget. Staff will incorporate any feedback and/or policy direction into the FY 2025-26 Annual Budget that is scheduled to be considered, and potentially adopted, on June 4, 2025. Adoption of the FY 2025-26 Annual Budget will then establish the appropriations for the FY 2025-26.

STAFF RECOMMENDATION
Staff recommends the City Council provide feedback and policy direction associated with the FY 2025-26 Proposed Budget.

TABLE OF CONTENTS

1. City Manager Budget Message 25-26

2. FY2526 Fund Balance

3. FY2526 Dept Exp Detail

4. FY2526 Headcount

5. FY2526 Transfer Summary

6. Long Range Forecast FY2526

7. FY2526 CIP Table

8. Fund Matrix Summary

City Manager Budget Message
May 21, 2025
Honorable Mayor and Members of the City Council:

With appreciation for the tremendous collective effort dedicated to its development, the FY 2025-26 City of Scotts Valley Preliminary Budget is presented to the City Council for your consideration. The last year brought continued economic uncertainty with regard to inflation, interest rates, new tariffs, and shifting economic policies at the federal and state level. The Scotts Valley economy remained relatively stable, with sales tax flat and modest growth in hotel taxes as tourism on the California coast exceeded prepandemic levels, particularly in Santa Cruz County. The City’s economic outlook remains cautious, with sales tax projections remaining flat into the next year. The State budget shortfall will impact the City’s opportunities to leverage grant funding and delays in federal reimbursements for emergency work done to repair roads after the 2023 winter storms will impinge the City’s cashflow for this budget year.

Despite the challenges and economic uncertainty, our City has been rebuilding, thanks to the passage of Measure Z, the City’s 1.25% sales and use tax, in March 2020. In the current year, Measure Z accounted for $4.3 million of the City’s revenue, which was $300 thousand less than the original budget projected. It allowed us to hire key staff across the City, particularly in the Police Department, which is now 100% staffed. In the Preliminary Budget for FY 2025-26, Measure Z revenue is expected to remain flat. Sales tax is a key revenue source that will continue to be monitored as results come in, and future trends are reported in the markets.

In addition, Measure X was overwhelmingly passed by the voters in November 2024 to modernize the City’s business license tax program. Measure X will move the City away from an employee-based tax rate to a gross receipts-based rate. In year 1 (FY 2025-26) businesses will only pay 50% of any increase in tax owed, limiting Measure X’s impact on this year’s budget to $300 thousand. A complementary compliance effort is underway to identify businesses operating without a business license, to ensure all businesses are paying their fair share.

Our efforts to rebuild the City’s infrastructure and organizational capacity were mostly successful this year. The City’s technology is now managed by a fiveyear equipment replacement plan, ensuring cyber security and technological efficiencies to enhance our workforce performance. With full staffing in our Public Works Engineering Division, we completed 11 capital projects this year and have another 24 active projects with 7 of those expected to be completed next year. This demonstrates success in addressing the backlog of capital projects that plagued the City during and following, the pandemic years.

Fiscal Year
2025-2026
Budget
$30.9 Million Revenue
• $4.3 Million Measure Z
• $300,000 Measure X
$36.1 Million Expenses
• $25.9 Million Operating
Expenses
• $9 Million Capital
Projects
Labor Force
• 65 Staff
• 3.5% Vacancy Rate
Planned Use of
Reserves
$1 Million General Fund
$4.2 Million Other Funds

In calendar year 2024, we hired 13 new employees. Our staffing situation has stabilized across most departments, but with over 50% of our staff with a tenure of less than 3 years, the City’s workforce is traversing a steep learning curve. Our success in hiring and retaining staff has resulted in the City’s vacancy rate being at its lowest level since before the COVID pandemic, at 3.5%. In December 2024, the City was fully staffed across all departments for the first time in recent memory.

The Council established the following priorities for the coming two fiscal years:

1. Maximize citywide high performance through efficient use of resources, proactive revenue development, adaptability, and strategic thinking across all operational areas.

2. Promote safety across the City through improving road conditions including safe routes for cyclists and pedestrians, preparing for and preventing wildfire impacts, and continuing proactive, community-based policing.

3. Support a thriving city through economic development, diverse and affordable housing, recreation programs, (protecting and) promoting the City’s brand and supporting community building events.

4. Improve City facilities to meet the needs of a modern workforce and community services.

5. Invest in and continue planning the City’s Town Center.

These goals have been used to inform the proposed budget and will be supported by strategies and tactics developed by staff.

Budget Overview
The proposed FY 2025-26 annual budget includes cautious revenue assumptions as the City and the region continue to face high inflation and economic uncertainty. Overall revenue of $30.9 million is included with $15 million of that revenue generated from taxes, including Measure Z. The budget includes $25.9 million in operating expenditures and an ambitious $9 million in capital projects for a total budget of $36.1 million.

This budget includes a planned use of fund balance of $1 million from the General Fund, and an additional $4.2 million from other funds, which includes funding for capital projects and supplementing recreation programs. In all likelihood, we will not complete every project on the CIP or maintain full staffing, resulting in budget savings as we progress through the year, as has been the trend for the last 2 years.

Highlights from the proposed FY 2025-26 budget are as follows:
 The City’s general fund balance is projected to drop below minimum reserve levels by the end of FY2025- 26 due to sluggish revenue, increased labor expenses and predicted delay in federal emergency fund reimbursement.
 In alignment with the City’s budget policies, this budget relies heavily on special revenue and other fund utilization to protect the general fund balance. A thorough review of these funds and their allowable expenses, along with force accounting and restructuring our CIP and capital outlay programs has resulted in no general fund transfer to the CIP fund this year, and more departmental expenses being charged to other funds. This is shown in an increase in transfer activity.  Measure X, modernizing the City’s Business License Tax program, will modestly help in FY2025-26, however its full impact won't be understood until the mid-year budget review, after the first year of renewals are processed.

 Increases in labor costs as agreed in the current 3-year labor contracts reflect fair market compensation packages for all city staff. The largest increase is in the Police Department. Certain programs and personnel have been restructured to improve organizational efficiency. Vacancies will be reviewed and assessed throughout the year for efficiency and necessity before refilling.  The cost of the School Resources Officer continues to rely entirely on the City’s General Fund.  $50,000 in General Fund was not allocated for the City’s Community Grant Program and $5,000 was discontinued as a contribution to the County’s Housing for Health program. Support for these programs could be reassessed at the mid-year budget review, depending on updated revenue projections at that time.
 The Economic Development budget focuses on investments to prepare the Town Center for development.
 The City’s CIP focuses on completing 7 projects including the Skypark big kids' playground, roadway improvements and critical wastewater treatment plant infrastructure upgrades per Council directed goals.

Fiscal Reserves and Long-Range Forecast
The City Council establishes target reserve
policies for its operating and capital funds.

Nonetheless, the General Fund is expected to
draw down reserves totaling $1 million in FY
2025-26 as expenses outpace revenues to
provide core services and deliver capital
improvement projects leaving a projected
ending fund balance of $2.5 million or 11% of
operating expenses. This is below the
established target minimum reserve of 17%.

Fund balance is expected to return to the
reserve target in FY 2026-27 upon Federal
reimbursement of $2.2 million of emergency
road repair expenses. The City’s long-range forecast, updated with Measure X projected revenue added, predicts a smaller structural budget deficit than prior forecasts. However, revenues are projected to trail expenses by $500,000 - $1 million per year which will deplete reserves if additional action is not taken.

The 2021-2023 surplus represents one time
funding from ARPA coupled with depleted staffing
levels and virtually no capital project activity. In
2024, the Council established the Section 115
Pension Trust Fund with an initial deposit of $2
million. Across 2024-2025, $2.2 million of
emergency road repair expenses were incurred
and are not expected to be reimbursed by the
Federal government until 2027.
$(2.0)
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
202120222023202420252026202720282029203020312032203320342035 Millions
City of Scotts Valley General Fund Reserve Forecast
Ending Reserves Reserve Minimum
$2.9
$2.1
$3.2
($4.4)
($3.6)
($1.0)
$1.2
($1.1) ($0.8) ($0.6) ($0.5) ($0.5) ($0.4) ($0.4) ($0.3) $(5.0)
$(4.0)
$(3.0)
$(2.0)
$(1.0)
$-
$1.0
$2.0
$3.0
$4.0
202120222023202420252026202720282029203020312032203320342035 Millions
City of Scotts Valley General Fund Surplus (Deficit) Forecast

To understand the City’s long-range forecast, it is important to understand the City’s past. The chart below shows the City’s key tax revenue sources from 2009 to present.

The loss of redevelopment revenue was not
addressed for almost a decade, leaving the City
in a dire financial situation until Measure Z was
adopted in 2020. Compared to 2% inflation, the
cumulative loss over that period is over $30
million.

Property taxes still only provide $2.1M per year,
or 8% of the City’s overall governmental revenue,
while Measure Z provides $4.3M or 18%.

A decade of deferred maintenance on the City’s streets, parks and buildings has left the City in a difficult and costly game of catch up. The City will need additional revenue sources if it is going to be able to meet the expectations of the community in the areas of street conditions, park amenities, recreation programming, and modernization of our facilities.

To help us understand the extent of these needs, Public Works has completed several assessments including: the Citywide Parks Master Plan, Pavement Condition Assessment and a Facility Conditions Assessment. In this coming year, we have prioritized completion of two additional plans: a Wastewater Master Plan and Skypark Facility Master Plan to ensure resources are planned efficiently for the next decade or more. The resulting needs identified in these planning efforts will need to be accounted for in the longterm forecast and future CIP.

I would be remiss to not dedicate a portion of this summary to the Town Center. Over the last three years, the City has made incredible progress toward making the Town Center a reality and FY 2025-26 will be the year it all comes together, cumulating with a development agreement with a to-be-determined private development partner, based on the City’s updated vision. The City has invested wisely to remove the prior barriers to development and in FY 2024-25 purchased the final 8 acres of land needed to assemble the Town Center core land. With market forces on our side, in the near future we will see the Town Center constructed! In Closing
Scotts Valley is not alone in facing financial challenges, however our challenges are unique due to our low property tax rate. The City is on a path of modernization and renewal to bring back our streets, parks and services to a level that our staff and community can be proud of. I believe the team at the City is up to this task, but the community will need to continue to fund this important work for current and future generations.

Thank you to the City Council for your ongoing support and commitment to the Scotts Valley community.

Thank you to Mayor Timm and Vice Mayor Timms, as the budget subcommittee, for your guidance and feedback as we prepared this budget; and a huge thank you to the finance team and executive team for your incredibly hard work to help move our City forward.

Mali LaGoe, City Manager

City of Scotts Valley
Summary of Financial Resources and Requirements
FY 2025-26
Fund Description
Projected
Beginning Fund
Balance
07/01/2025
Estimated
Revenues
FY26
Transfers
In
Estimated
Total Funds
Available
Proposed
Budget
Expenditures
FY26
Transfers
Out
Projected
Ending Fund
Balance
06/30/2026
General Funds
1 General Fund 2,550,293 19,686,976 627,750 22,865,019 20,490,783 623,585 1,750,651 6 Equipment Replacement Reserve 1,003,154 38,000 1,041,154 267,250 773,904 Recreation Funds (4, 28, 123) 0 348,400 681,085 1,029,485 971,985 57,500 0 Subtotal General Funds 3,553,447 20,073,376 1,308,835 24,935,658 21,462,768 948,335 2,524,555 Capital Improvement Projects
150 Major Capital Projects 664,627 750,000 4,423,000 5,837,627 5,755,000 82,627 151 Capital Outlay Projects - - 973,800 973,800 973,800 - Subtotal Capital Improvement Projects 664,627 750,000 5,396,800 6,811,427 6,728,800 - 82,627 Special Revenue Funds - Development Impact Fees
7 Drainage Construction Impact Fees 116,765 10,000 126,765 126,765 8 Traffic Impact Mitigation Fees 960,673 60,000 1,020,673 1,020,673 9 Park & Recreation Facilities Impact Fees 1,872,364 90,000 1,962,364 500,000 1,462,364 21 General Facility Impact Fees 2,503 2,500 5,003 5,003 27 Police Facility Building Impact Fees 382,709 20,000 402,709 402,709 86 Library Impact Fees 195,329 11,000 206,329 206,329
Subtotal Special Revenue Funds - Development Im 3,530,343 193,500 - 3,723,843 - 500,000 3,223,843 Special Revenue Funds - Other
2 Recycling/Environment 369,293 260,000 629,293 255,000 145,000 229,293 3 Gas Tax (HUTA) 1,135,987 361,685 1,497,672 1,222,000 275,672 5 SMIP Fees (0) 4,000 4,000 4,000 (0)
19 Affordable Housing 3,905,760 151,120 4,056,880 805,000 3,251,880 24 Lennar Funds 514,450 - 514,450 441,300 73,150
31 STP Exchange Projects (RSTPX) - 1,023,000 1,023,000 1,023,000 - 33 Tree Replacement 56,016 4,000 60,016 60,016
35 Green Building Funding 659,350 30,000 689,350 55,538 633,812 36 Disability Compliance 26,624 5,000 31,624 5,000 26,624 50 Pinewood Estates Maint. Dist. 0 6,000 6,000 6,000 0
51 Mt. Hermon Traffic Mitigation 12,268 - 12,268 12,268 77 Skypark Landscape Maint. Dist. (0) 41,750 41,750 41,750 (0) 78 Skypark Landscape Maint. Dist. Insurance 562,622 20,000 582,622 582,622 88 Library Improvements (Measure S) - 30,000 30,000 30,000 - 89 Library - Cty MOE Excess Distribution 486,513 15,000 30,000 531,513 531,513 115 Section 115 Set Aside - Pension 2,162,866 100,000 2,262,866 2,262,866 155 Measure D Sales Tax for Transportation 1,033,507 373,000 1,406,507 975,000 431,507 156 SB-1 (RMRA) 1,128,493 316,652 1,445,145 803,000 642,145 200 Quimby Act 197,052 7,000 204,052 204,052
201 Measure Q - 200,000 200,000 200,000 -
306 Supplemental Law Enforcement Services 109,691 103,000 212,691 148,000 64,691 313 Youth Based Programs 55,152 5,000 60,152 5,000 55,152 317 EDG Revolving Loan 407,487 15,000 422,487 422,487
Subtotal Special Revenue Funds - Other 12,823,133 3,071,207 30,000 15,924,340 1,177,288 4,987,300 9,759,752 Debt Service Funds
66 COP Debt Service Reserve 1,114,878 1,114,878 300,000 814,878 Subtotal Debt Service Funds 1,114,878 - - 1,114,878 - 300,000 814,878 Total Governmental Funds 21,686,428 24,088,083 6,735,635 52,510,146 29,368,856 6,735,635 16,405,655 Wastewater Enterprise Funds (funds are presented with working capital (current assets, less current liabilities) 10 Wastewater Operations 2,263,419 4,771,000 7,034,419 3,838,459 361,368 2,834,592 11 Tertiary Operating - 272,000 361,368 633,368 633,368 - 12 Waterwater Treatment Facility Fee (DIF) 395,522 45,000 440,522 440,522 14 Wastewater Capital Replacement Fund (1,182,309) 1,750,000 - 567,691 2,278,188 (1,710,497) Subtotal Wastewater Enterprise Funds 1,476,632 6,838,000 361,368 8,676,000 6,750,015 361,368 1,564,617 Total All Funds 23,163,059 30,926,083 7,097,003 61,186,145 36,118,871 7,097,003 17,970,271 38,023,086 Total revenues with transfers 43,215,874 Total expenses with transfers

DEPARTMENT EXPENSE DETAILS
FY2024

ACTUALS
FY2025

AMENDED
BUDGET
FY2026

PROPOSED
BUDGET

DIFF TO
PY
BUDGET

EXPENSES - GENERAL FUND

LEGISLATIVE
Salaries & Benefits 225,219 90,562 115,665 25,103
Services & Supplies 38,729 129,903 24,500 (105,403)
LEGISLATIVE TOTAL 263,948 220,465 140,165 (80,300)
LEGAL
Salaries & Benefits - - - -
Services & Supplies 296,888 305,000 340,500 35,500
LEGAL TOTAL 296,888 305,000 340,500 35,500

CITY MANAGER'S OFFICE
Salaries & Benefits 648,371 749,679 789,900 40,221
Services & Supplies 56,886 581,900 458,050 (123,850)
CITY MANAGER'S OFFICE TOTAL 705,257 1,331,579 1,247,950 (83,629)

ADMINISTRATIVE SERVICES
Salaries & Benefits 1,523,174 1,628,002 1,777,975 149,973 Services & Supplies 2,244,594 2,033,684 2,039,000 5,316 Debt Service 910,731 828,000 789,000 (39,000)
ADMINISTRATION TOTAL 4,678,499 4,489,686 4,605,975 116,289 POLICE
Salaries & Benefits 6,125,896 6,879,422 7,501,191 621,769 Services & Supplies 769,555 813,048 838,600 25,552
POLICE TOTAL 6,895,450 7,692,470 8,339,791 647,321

COMMUNITY DEVELOPMENT
Salaries & Benefits 953,870 1,052,020 1,187,434 135,414 Services & Supplies 655,633 746,000 709,000 (37,000)
COMMUNITY DEVELOPMENT TOTAL 1,609,503 1,798,020 1,896,434 98,414

PUBLIC WORKS
Salaries & Benefits 1,580,293 1,830,427 2,263,028 432,601 Services & Supplies 1,376,011 2,401,800 1,656,940 (744,860) PUBLIC WORKS TOTAL 2,956,304 4,232,227 3,919,968 (312,259) RECREATION - FUNDS 004, 028, 123
Salaries & Benefits 473,689 569,597 576,385 6,788
Services & Supplies 459,535 552,961 395,600 (157,361)
RECREATION TOTAL 933,224 1,122,558 971,985 (150,573)
GENERAL FUND EXPENSE TOTAL 18,339,073 21,192,005 21,462,768 270,763 * excludes transfers

EXPENSES - WASTE WATER ENTERPRISE FUNDS
Salaries & Benefits 1,525,384 1,496,889 1,432,011 (64,878) Services & Supplies 2,201,190 2,342,628 3,053,004 710,376 Capital Project Related 1,284,493 3,004,908 2,265,000 (739,908) WASTE WATER TOTAL 5,011,067 6,844,425 6,750,015 (94,410) * excludes transfers and depreciation

FY 2025-26 Budgeted Positions
The City’s budgeted position summary for Fiscal Year 2025-26 reflects a total of 65.00 FullTime Equivalent (FTE) positions distributed across key departments to support core municipal operations. The largest allocation of personnel is within the Police Department, which comprises 28.00 FTEs, highlighting the City's ongoing commitment to public safety and emergency response services. Public Works, collectively accounting for 20.50 FTEs between the General Fund and Wastewater operations, plays a vital role in maintaining infrastructure and services, ensuring the City's physical assets and environmental systems are well-managed.

Administrative Services is allocated 8.00 FTEs encompassing the City Manager’s Office, Finance and Human Resources, all providing support to internal operations. Community Development is allocated 5.00 FTEs, supporting and guiding growth and planning initiatives. The Recreation Department, with 3.50 FTEs, focuses on enriching the community through recreational programming and public amenities. This staffing plan reflects a balanced approach, aligning personnel resources with strategic priorities and community needs while maintaining fiscal responsibility.

Department FTE Count
Administrative Services 8.00
Community Development 5.00
Public Works General Fund 12.15
Public Works Wastewater 8.35
Police 28.00
Recreation 3.50
Total FTE FY25/26 65.00

FY 2025 - 26 Transfer Activity
Transfer From Transfer To Amount Method Purpose
2 1 $ 45,000 Actuals Environmental support
2 1 $ 100,000 Actuals Environmental support
306 1 $ 68,000 Actuals Police equipment
201 1 $ 80,000 Actuals Parks related support
66 1 $ 300,000 Actuals Debt service smoothing
6 1 $ 34,750 Actuals Computer replacements
1 4 $ 535,208 Actuals Recreation supplement
123 4 $ 57,500 Actuals Recreation supplement
10 11 $ 361,368 Actuals Tertiary supplement
1 28 $ 88,377 Actuals Recreation supplement
9 150 $ 500,000 Actuals Shugart Park
3 150 $ 500,000 Actuals Annual Street Maintenance
3 150 $ 622,000 Actuals SV Drive Corridor Improvements
156 150 $ 500,000 Actuals Annual Street Maintenance
156 150 $ 303,000 Actuals SV Drive Corridor Improvements 31 150 $ 300,000 Actuals SV Drive Corridor Improvements 31 150 $ 200,000 Actuals Granite Creek Overpass
31 150 $ 523,000 Actuals Mt Hermon Rd Improvements
155 150 $ 500,000 Actuals Annual Street Maintenance
155 150 $ 275,000 Actuals SV Drive Corridor Improvements 155 150 $ 200,000 Actuals Mt Hermon Rd Improvements
306 151 $ 80,000 Actuals Police vehicle
3 151 $ 100,000 Actuals Annual Citywide Street Striping 6 151 $ 232,500 Actuals Equip. Replacement Capital Outlay 24 151 $ 441,300 Actuals Lennar Funded Capital Outlay
201 151 $ 120,000 Actuals Measure Q Funded Capital Outlay $ 7,067,003
Summary of Transfers From by Fund Summary of Transfers To by Fund 1 $ 623,585 1 $ 627,750
2 $ 145,000 4 $ 592,708
3 $ 1,222,000 11 $ 361,368
6 $ 267,250 28 $ 88,377
9 $ 500,000 150 $ 4,423,000
10 $ 361,368 151 $ 973,800
24 $ 441,300 $ 7,067,003
31 $ 1,023,000
66 $ 300,000
123 $ 57,500
155 $ 975,000
156 $ 803,000
201 $ 200,000
306 $ 148,000
$ 7,067,003
In municipal budgeting, transfers refer to the movement of funds between different accounts or funds within the City’s financial structure. These transfers are used to allocate resources where they are most needed, ensure balanced funding across operations, and support specific purposes such as capital projects, debt repayment, or special projects. Unlike direct expenditures for goods and services, transfers do not represent spending on external vendors but rather reflect internal reallocations of financial resources. By including these transfers in the budget package, the City provides transparency into how it strategically manages and prioritizes financial resources across departments and programs.

Long-Range Forecast
Key Year Notes:
• FY22/23 recognized $2M in revenue from American Rescue Plan Act (Covid relief funds) • FY23/24 had $1.5M spent on FHWA road repairs, plus $2M set aside in a Section 115 trust fund for future pension obligations.
• FY24/25 had an additional $0.7M spent on FHWA road repairs, and $1.3M transferred for capital projects
• FY26/27 is anticipating $2.2M reimbursement from FHWA for the road repairs. $(2.0)
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
202120222023202420252026202720282029203020312032203320342035 Millions
City of Scotts Valley General Fund Reserve Forecast
Ending Reserves Reserve Minimum
$2.9
$2.1
$3.2
($4.4)($3.6)
($1.0)
$1.2
($1.1)($0.8)($0.6)($0.5)($0.5)($0.4)($0.4)($0.3)
$(6.0)
$(4.0)
$(2.0)
$-
$2.0
$4.0
202120222023202420252026202720282029203020312032203320342035 Millions
City of Scotts Valley General Fund Surplus (Deficit)
Forecast

FY 2025-26 City-Wide Capital Improvement Project Budget $8,993,800 Major Capital Projects
Priority Description Funding Source FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Wastewater
A Wastewater Master Plan WWTP-C $ 350,000
A Clarifier Superstructure & Walkways WWTP-C $ 550,000
B Effluent Pump Replacement WWTP-C $ 275,000 $ 275,000 $ 275,000 A Collection System Lift Stations WWTP-C $ 200,000 $ 50,000 $ 50,000 $ 50,000 A Collection System Pipeline Upgrades WWTP-C $ 300,000 $ 300,000 $ 300,000 A MBR Upgrade WWTP-C $ 250,000
Wastewater Total $ 1,925,000 $ 625,000 $ 625,000 $ 50,000 $ - Transportation
A Annual Street Maintenance/Resurfacing GT/SB1/Meas D $ 1,500,000 $ 1,000,000 $ 1,000,000 B Janis Way Digout, Overlay, Sidewalk, Bike Lanes Measure D $ 250,000 A Mount Hermon Road Improvements Measure D/ RTC $ 723,000 A Bean Creek Road Pavement Rehab - Phase 2 Measure D $ 300,000 B Lockwood Lane Street Improvements Measure D $ 100,000 A Granite Creek Overcrossing RSTPX/SB-1 $ 200,000 $ 523,000 B Scotts Valley Drive - Pedestrian Safety Street Lighting CIP $ 300,000 A Traffic Signal Upgrade CIP $ 250,000 $ 250,000
A Scotts Valley Drive Corridor Improvements RTC/SB1/Measure D $ 1,500,000 Transportation Total $ 3,923,000 $ 1,823,000 $ 600,000 $ 1,300,000 $ 250,000 Storm Drains
A Storm Drain Trash Capture System CIP $ 150,000 $ 200,000 B Pinecone Drive Draining Improvements CIP $ 25,000 $ 100,000 A Scotts Valley Drive - Culvert Repair CIP $ 150,000 $ 850,000 A Granite Creek - Culvert Repair Design* CIP $ 100,000
A N. Scotts Valley Drive (S. of Redwood Vista) - Drainage CIP $ 30,000 $ 200,000 B Hacienda Road Storm Drain Extension CIP $ 100,000
Storm Drains Total $ 375,000 $ 1,130,000 $ 400,000 $ - $ - Parks
A Skypark Play Structure Replacement HUD $ 757,000
A Shugart Park Buildout Parks DIF $ 500,000 $ 2,154,863 Parks Total $ 1,257,000 $ 2,154,863 $ - $ - $ -
General Facilities
A Public Works Facility Improvements CIP $ 200,000 $ 1,300,000 General Facilities Total $ 200,000 $ 1,300,000 $ - $ - $ - Total Major Capital Projects $ 7,680,000 $ 7,032,863 $1,625,000 $1,350,000 $ 250,000 * Specific year and funding source not yet identified
Capital Outlay Projects
Priority Description Funding Source FY 2025-26
Wastewater Enterprise Funds
B Generator Transfer Switch and UPS upgrades WWTP-C $ 40,000 B Wastewater Dump Truck WWTP-C $ 200,000
B Breaker Replacement: Thermographic / Neta WWTP-C $ 100,000 Wastewater Total $ 340,000
Government Funds
A Annual Citywide Street Striping1 Gas Tax $ 100,000
A IT Network Firewall Replacement Equip. Replacement $ 150,000 C Equipment Trailer Equip. Replacement $ 27,500
C Tractor Implements Equip. Replacement $ 25,000
A Police Patrol Vehicle Police SLES $ 80,000
B 5 Electric gate repair/replacements Equip. Replacement $ 30,000 C ADA Improvements - Phase 1 Lennar $ 116,300
B Recreation Building Exterior Paint/Siding Lennar $ 100,000 B Parks Lighting Project Lennar $ 65,000
B Basketball Courts Resurfacing Hocus Pocus Lennar $ 50,000 B Tennis Court Lights Lennar $ 45,000
B Community Center Doors Lennar $ 35,000
B Siltanen Retaining Wall Lennar $ 30,000
B Parks Buildings Roofing Measure Q $ 50,000
C Siltanen Gazebo Measure Q $ 45,000
B Glenwood Retain Wall Culvert Measure Q $ 25,000
Government Funds Total $ 973,800.00

Fund Matrix
Fund No. Fund Name Short Description Category Classification Restricted,
Committed,
Assigned,
Unassigned
Interest
Earning
1 General Fund
The General Fund is the City s primary and most flexible funding source, where local tax revenues are deposited. Unlike restricted special revenue funds, the City Council has full discretion over how General Fund dollars are spent. General Fund Governmental Fund All Yes
4 Recreation
The Recreation Fund supports environmental stewardship and provides safe, inclusive spaces for play, learning, and community building. It includes five parks with athletic fields, play areas, and an off-leash area. Any shortfalls are covered by the other Recreation funds and then by the General Fund. General Fund Governmental Fund Varies 6 Equipment Replacement Reserve
This fund holds reserve assets to finance the future replacement of capital assets and equipment, such as vehicles or machinery. General Fund Governmental Fund Committed,
Assigned
28 Senior Center Operations
The City operates a Senior Center for the enjoyment of Scotts Valley’s seniors, offering a variety of programs and activities and rental of the senior center facility by community members. Program and rental revenues are recorded in the fund to pay for the expenditures associated with the programs and activities offered. Any shortfalls are covered by the other Recreation funds and then by the General Fund. This is a subset of the overal Recreation fund. General Fund Governmental Fund Varies 123
Commmunity Facility Center
Operations
The City operates a Community Center for the enjoyment of the community.

The facility is available for rental to the public. Rental revenues are recorded in the fund to pay for the expenditures associated with the operation and maintenance of the Center and any remaining goes towards overall Recreation activities. This is a subset of the overal Recreation fund. General Fund Governmental Fund Assigned 150 Major Capital Projects
These are large-scale, one-time investments that typically involve significant planning, design, and construction. They often have long useful lives, impact community infrastructure, and exceed a defined cost threshold (e.g., $100,000 or more). Project expenses are typically all tracked here and has revenue sources as transfers in. Capital Improvement Projects Governmental Fund Committed,
Assigned
151 Capital Outlay Projects
This category includes routine, yet essential, capital investments that support operations but do not rise to the level of a major capital project. These items are often recurring and ensure that existing assets remain safe, functional, and efficient. Project expenses are typically all tracked here and has revenue sources as transfers in. Capital Improvement Projects Governmental Fund Committed,
Assigned
7 Drainage Construction Impact
Fees
For payment of the actual or estimated costs of constructing and improving the storm drain facilities within the city, including any required acquisition of land. Special Revenue Fund - DIF Governmental Fund Restricted Yes 8 Traffic Impact Mitigation Fees
For payment of the actual or estimated costs of the design, upgrading or improvement of the traffic network, including any required acquisition of land. Special Revenue Fund - DIF Governmental Fund Restricted Yes 9 Park & Recreation Facilities
Impact Fees
For payment of the actual or estimated costs of constructing and improving the park and recreation facilities within the city, including any required acquisition of land, as well as grading, irrigation, and turfing costs associated therewith. Special Revenue Fund - DIF Governmental Fund Restricted Yes The Fund Matrix serves as a comprehensive reference tool that outlines the structure and purpose of each budgeted fund within the City’s financial system. It provides essential information including the fund name, a brief description of its function, its classification (such as governmental, proprietary, or fiduciary), the category it falls under, and the primary use or purpose of the fund. This matrix helps readers understand how public resources are organized and managed, ensuring transparency in how different funding sources are allocated, restricted, or applied to specific programs, operations, or capital needs. By clearly identifying the role of each fund, the matrix supports effective decision-making and reinforces the City's commitment to fiscal accountability.

Fund No. Fund Name Short Description Category Classification Restricted,
Committed,
Assigned,
Unassigned
Interest
Earning
21 General Facility Impact Fees
For payment of the actual or estimated costs of constructing and improving the general municipal facilities within the city, including any required acquisition of land. Special Revenue Fund - DIF Governmental Fund Restricted Yes 27 Police Facility Building Impact
Fees
For payment of the actual or estimated costs of law enforcement facilities, equipment, and training, including any required acquisition of land. Special Revenue Fund - DIF Governmental Fund Restricted Yes 86 Library Impact Fees
For payment of the actual or estimated costs of constructing and improving the library facilities within the city, including any required acquisition of land. Special Revenue Fund - DIF Governmental Fund Restricted Yes 2 Recycling/Environment
This fund accounts for fees paid by solid waste companies and customers through the County of Santa Cruz for disposal of solid waste in County transfer facilities. A portion of these revenues are sent back to the City help pay for recycling and environmental protection. (CSA-9) Special Revenue Fund Governmental Fund Restricted Yes 3 Gas Tax (HUTA)
The state of California imposes per-gallon excise taxes on gasoline and diesel fuel, sales taxes on gasoline and diesel fuel and registration taxes on motor vehicles with allocations to dedicated transportation purposes. These allocations flow through the Highway Users Tax Account (HUTA), which are allocated to state and local agencies based primarily on population. Special Revenue Fund Governmental Fund Restricted Yes 5 SMIP Fees
The City collects a Strong Motion Instrumentation Program (SMIP) fee on building permits requiring inspection, which supports California’s statewide seismic monitoring efforts. Administered by the Department of Conservation, these funds help install and maintain seismic instruments and are remitted to the State as required by law. Special Revenue Fund Governmental Fund Restricted 17 HOME Grant Program
The HOME Grant Program is administered by HUD and provides block grants to state and local governments to support affordable housing for low-income households. Funds are used for activities such as homebuyer assistance, rental housing development, and property rehabilitation. Special Revenue Fund Governmental Fund Restricted Yes 19 Affordable Housing
After the dissolution of Scotts Valley’s redevelopment agency in 2012, the City became the successor housing agency to manage affordable housing programs. It received funds and properties from the former agency, including rental income and first-time homebuyer loan repayments. These revenues support the administration of existing affordable housing and help fund new affordable housing development through subsidies to developers. Special Revenue Fund Governmental Fund Committed,
Assigned Yes
24 Lennar Funds
In 2014, the City received $1 million from Lennar Homes as part of a development agreement for the former Polo Ranch property. The funds, to be used at the City Council’s discretion, have supported various park and recreational infrastructure improvements. Special Revenue Fund Governmental Fund Committed 31 STP Exchange Projects (RSTPX)
The City receives grant funding through the Regional Surface Transportation Program and the California Local Partnership Program to support transportation-related projects. This fund accounts for the grant revenues and capital expenditures associated with approved projects. Special Revenue Fund Governmental Fund Restricted Yes 33 Tree Replacement
The City levies a tree removal fee for property owners that wish to remove trees on their property. Fees collected are used to fund tree planting maintenance efforts on City property to mitigate the environmental impact on tree removal by private property owners. Special Revenue Fund Governmental Fund Committed 35 Green Building Funding
The City collects a green building fee, as outlined in Municipal Code §17.51.080, on most property developments based on the project’s assessed valuation. The fee supports program management, public education, and local seminars on green building practices. Special Revenue Fund Governmental Fund Committed

Fund No. Fund Name Short Description Category Classification Restricted,
Committed,
Assigned,
Unassigned
Interest
Earning
36 Disability Compliance
The City collects a fee on business license registrations and renewals, as required by Senate Bill 1186. Ninety percent supports local accessibility compliance efforts, including training certified access specialists, while the remaining ten percent is remitted to the State. Special Revenue Fund Governmental Fund Assigned 50 Pinewood Estates Maint. Dist.

Established in 1987, the Pinewood Estates Landscape Maintenance District funds the upkeep of landscaping, irrigation, signage, fencing, and storm detention ponds for 25 parcels. Maintenance costs are covered by assessments levied on homeowners within the district. Special Revenue Fund Governmental Fund Restricted Yes 51 Mt. Hermon Traffic Mitigation
This fund accounts for fees charged for any development project whose traffic generation causes an increased burden on Scotts Valley Dr/Mt. Hermon Rd and Mt. Hermon Rd/La Madrona Dr. Special Revenue Fund Governmental Fund Assigned 77 Skypark Landscape Maint. Dist.

Established in 1995, the Skypark Open Space Maintenance District funds the upkeep of a linear park and two greenbelt areas serving 190 adjacent parcels.

Maintenance and utilities are funded through assessments deposited into Fund 077, while Fund 078 holds reserves for slope failure self-insurance. Special Revenue Fund Governmental Fund Restricted Yes 78 Skypark Landscape Maint. Dist.

Insurance
Established in 1995, the Skypark Open Space Maintenance District funds the upkeep of a linear park and two greenbelt areas serving 190 adjacent parcels.

Maintenance and utilities are funded through assessments deposited into Fund 077, while Fund 078 holds reserves for slope failure self-insurance. Special Revenue Fund Governmental Fund Restricted Yes 88 Library Improvements (Measure
S)
Measure S, passed in June 2016, allocated $3.75 million in bond funding for renovations to the Scotts Valley Library. The project, which began in summer 2021 and was completed in 2022, included seismic upgrades, a new HVAC system, interior redesigns, and various facility improvements. Remaining funds were drawn down in FY 2022-23. Special Revenue Fund Governmental Fund Restricted Yes 89 Library - Cty MOE Excess
Distribution
The City participates in the Santa Cruz County Library Financing Authority, which collects property taxes in Scotts Valley to fund the City's share of the countywide library system and operate the Scotts Valley Branch. This contribution, known as the Maintenance of Effort (MOE), supports library services and may be used for renovation projects and direct operational costs as needed. Special Revenue Fund Governmental Fund Restricted Yes 115 Section 115 Set Aside - Pension
This fund was established for the safe and secure setting aside of funds, separate from the government's general fund, to reduce pension liabilities and stabilize pension costs. Special Revenue Fund Governmental Fund Restricted Yes 155
Measure D Sales Tax for
Transportation
The passage of countywide Measure D in November 2016 provides nearly $300,000 in annual sales tax revenues to the City to fund a variety of transportation projects that the City might not have otherwise been able to fund with existing revenues (a key stipulation in the measure). Projects are identified and approved by the Regional Transportation Commission on an annual basis. Special Revenue Fund Governmental Fund Restricted Yes 156 SB-1 (RMRA)
Established under SB 1 (The Road Repair and Accountability Act of 2017), RMRA funds are dedicated to maintaining and improving California’s transportation infrastructure. Special Revenue Fund Governmental Fund Restricted Yes 200 Quimby Act
This fee is collected from developers in lieu of requiring them to dedicate land for parks, recreation, or open space when a subdivision does not align with designated areas in the city’s open space plans. Special Revenue Fund Governmental Fund Restricted Yes

Fund No. Fund Name Short Description Category Classification Restricted,
Committed,
Assigned,
Unassigned
Interest
Earning
201 Measure Q
The Measure Q Fund is a dedicated special revenue fund established to support environmental resilience in Santa Cruz County. It was created by voter-approved ordinance to protect local drinking water sources, improve water quality, reduce wildfire risk, conserve wildlife and habitats, and expand access to parks and recreation. Special Revenue Fund Governmental Fund Restricted Yes 306
Supplemental Law Enforcement
Services
The State provides funding for local law enforcement pursuant to the provisions of California Government Code §30061 under the Citizens’ Option for Public Safety program. These funds, known as “supplemental law enforcement services funds.” (SLESF) are allocated to local agencies to provide “front-line law enforcement services”, allocated based on population; the City of Scotts Valley receives a grant of $100,000 to each agency. Special Revenue Fund Governmental Fund Restricted Yes 313 Youth Based Programs
This fund accounts for youth focused programs such as DARE, the Junior Policy Academy, National Night Out, Police Exploring, and other associated youth focused public relations events. Special Revenue Fund Governmental Fund Committed 317 Community and Economic Grants
This fund accounts for revenues and expenditures related to federally, state, and locally funded grant programs that support community development and economic growth. This fund primarily tracks activities funded through the Community Development Block Grant (CDBG) program administered by the U.S. Department of Housing and Urban Development (HUD), as well as Economic Development Grant (EDG) programs awarded by state or local agencies. Special Revenue Fund Governmental Fund Restricted Yes 66 Debt Service
This fund holds reserve assets for previous City debt service. The remaining balance is used to smooth out future debt service payments until the fund is expended or a new debt service requires a reserve. Debt Service Funds Governmental Fund Assigned 10 Wastewater Operations
The City provides wastewater services to the community through its wastewater collection and treatment plant operations. Wastewater services are provided under the Public Works Department. Wastewater Fund Enterprise Fund Varies Yes 11 Tertiary Operating
The City provides tertiary water (recycled water) services through the treatment and distribution of non-potable water to the Scotts Valley Water District, maintained and operated by the City Wastewater Department. Wastewater Fund Enterprise Fund Varies 12 Wastewater Treatment Facility
Fee (DIF)
For payment of the actual or estimated costs of constructing and improving the sewage treatment facilities within the city, including any required acquisition of land. Wastewater Fund Enterprise Fund Restricted Yes 14 Wastewater Capital Replacement
Fund
This fund is established to finance the replacement of wastewater infrastructure, such as pipes, pumps, and treatment plant equipment, after they have reached the end of their useful lifespan. Wastewater Fund Enterprise Fund Committed,
Assigned