Agenda packet — Soledad City Council, June 17, 2026 (part 3 of 3)

Chapter 13.09 MANDATORY WATER CONSERVATION REGULATIONS
Sections:

13.09.010 Purpose.

The purpose of this chapter is to increase public awareness of the need for water conservation, and to provide regulations and restrictions on the delivery of water and the consumption within the city limits of water supplied for public use as will (1) conserve the water supply for the greatest public benefit with particular regard to domestic use, sanitation and fire protection, and (2) ensure compliance with water regulations of other governmental agencies of appropriate jurisdiction.
(Ord. 534 § 2 (part), 1993)

13.09.020 Definitions.

A. Agency. "Agency" means the Monterey County Water Resources Agency.

B. "Automatic shutoff nozzle" means a water release mechanism securely affixed to the end of a water hose that requires the person using the hose to apply and maintain the flow of water, and that shuts off immediately when pressure is released.

C. "Change of ownership" means a transfer of the right to beneficial use thereof, regardless of whether such transfer is voluntary, involuntary, or by operation of law, court order, grant, gift, devise, inheritance, trust, contract of sale, addition or deletion of an owner, property settlement or by any other means.

D. "Change of use" means a change from one use of a structure to another use that is identified as a different use under the zoning ordinance, Title 17, of the Municipal Code of the city of Soledad.

E. "City manager" means the city manager of the city of Soledad.

F. "New construction" means a completely new structure, a new addition to a previously existing structure or the portion of a previously existing structure that is newly remodeled or renovated.

G. "Overdraft" means the condition of a groundwater basin where the amount of water withdrawn by pumping exceeds the amount of water replenishing the basin over an extended period of time, or where the amount of water withdrawn by pumping results in an unacceptable degradation of groundwater quality within the basin.

H. "Person" means any individual person and any firm, partnership, corporation, business entity, association, district, agency, city, county and any other entity or organization.

I. "Public works director" means the superintendent of public works of the city of Soledad.

J. A "shutoff nozzle" means a water release mechanism ("nozzle") securely affixed to the end of a water hose which enables the user of the hose to control the flow of water in the hose, including stopping the flow of water completely and securely, by a lever or mechanical device in the nozzle.

K. "Superintendent of utilities" means the superintendent of utilities of the city of Soledad.

L. "Water recirculating system" means a system approved by the city that recirculates water between hot water and cold water lines, so that substantially all the cold water standing in the pipes will be returned to 592
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the water heater and reheated before the faucet is turned on. The system may be turned on and off by a manually operated switch, by a timer-operated switch, or otherwise, or may be left on permanently. (Ord. 534 § 2 (part), 1993)

13.09.030 Enforcement.

The city manager and all officers and employees of the city, including all ex officio officers and employees, shall enforce all the provisions of this chapter by the issuance of citations, including warning citations, and taking all other necessary action, including bringing civil action to abate a nuisance as set forth herein, through the city attorney's office.
(Ord. 534 § 2 (part), 1993)

13.09.040 Mandatory restrictions on water waste.

A. Repair of Plumbing, Sprinkler and Irrigation Systems. Any person who is the owner, manager or person responsible for the day-to-day operation of any premises shall take caution to initiate steps to repair any leaking, broken or defective water pipes, faucets, plumbing fixtures, other water service appliances, sprinklers, water or irrigation systems, or distribution systems within a reasonable time after such person learns of such leaks, breaks or defects, and shall thereafter diligently and promptly pursue such repair work to completion. In any event, such action initiating steps for repair shall take place within seventy-two hours after such person first learns of the problem, unless a variance is obtained from the city of Soledad.

B. Washing of Vehicles. No person shall use a water hose to wash any car, truck, boat, trailer, bus, recreational vehicle, camper, aircraft, tractor or any other vehicle, or any portion thereof, with potable water, unless the hose is equipped with an automatic shutoff nozzle.

C. Cleaning of Structures. No person shall use potable water through a hose to clean the exterior of any building or structure unless such hose is equipped with a shutoff nozzle.

D. Cleaning of Surfaces. No person shall use potable water through a hose to clean any sidewalk, driveway, roadway, parking lot, or any other outdoor paved or hard-surfaced area, except where necessary to protect public health and safety. The use of a bucket is not prohibited at any time for cleaning food, grease, oil, or other stains or spillage from surfaces.

E. Water Spillage. No person shall cause, suffer or permit water to spill into streets, curbs or gutters. No person shall use any water in any manner which results in runoff beyond the immediate area of use, unless the contour of the premises is such that avoidance of some minimum spillage is impossible.

F. Swimming Pools and Spas. No person shall empty and refill a swimming pool or spa except to prevent or repair structural damage or to comply with public health regulations.

G. Fountains. No person shall use water to operate or maintain levels in decorative fountains, unless such water is recycled in the fountain.

H. Visitor-Serving Facilities. The owner and manager of each hotel, motel, restaurant, convention and other visitor-serving facility shall ensure that such facility displays, in places visible to all customers, placards or decals approved by the agency, promoting public awareness of the need for water conservation and/or advising the public that waste of water is prohibited.

I. Public and Quasi-Public Entities. All public and quasi-public entities shall display, in visible locations in all rostrums, kitchens and dining areas, placards or decals approved by the agency, promoting public awareness of the need for water conservation and/or advising the public that waste of water is prohibited. "Quasi593 Created: 2025-09-26 12:12:17 [EST]
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public entities" include educational institutions, churches, recreational facilities open to the public, and other such entities designated by the superintendent of utilities. Placement of placards or decals by a quasi-public entity of a type not specifically mentioned in this chapter shall not be required unless the superintendent of utilities gives written notice to the entity that this chapter is applicable to the entity so notified and that placement of placards or decals is required.

J. Commercial Car Washes. No person in charge of the operation of any commercial car wash facility shall suffer or permit the washing of any boat, trailer, recreational vehicle or other vehicle in such facility or on its premises, other than by the following methods:

1. Use of mechanical automatic car wash facilities utilizing water recycling equipment;

2. Use of a hose that operates on a timer for limited time periods and shuts off automatically at the expiration of the time period;

3. Use of a hose equipped with an automatic shutoff nozzle;

4. Use of bucket and hand washing.

K. Construction.

1. No potable water may be used for compaction or dust control purposes in construction activities where there is a reasonably available source of reclaimed or other subpotable water approved by Monterey County health department and appropriate for such use.

2. All hoses used in connection with any construction activity shall be equipped with a shutoff nozzle.

When an automatic shutoff nozzle can be purchased or otherwise obtained for the size or type of hose in use, the nozzle shall be an automatic shutoff nozzle.

L. Use of Hydrants. No person, other than a member of the fire department of the city of Soledad, the fire department of any other jurisdiction giving assistance to the Soledad fire department in emergencies, the city of Soledad department of public works, or the city of Soledad water and sewer utilities department may use water from a fire hydrant, without first obtaining a permit from the planning department of the city of Soledad.

M. Leakage and Repair Program. The public works director shall maintain in effect a distribution system leakage detection and repair program. This program shall be reviewed on an annual basis and a report analyzing the results of the program shall be prepared by the director and submitted to the city council.

N. New Construction.

1. In all new construction, all toilets shall be ultra low-flow toilets with a maximum tank size or flush capacity of one and one-half gallons.

2. All shower heads shall have a maximum flow capacity of two and one-half gallons per minute.

3. All hot water faucets that have more than ten feet of pipe between the faucet and the hot water heater serving such faucet shall be equipped with a water recirculating system.

4. All new construction requiring a discretionary permit from the city of Soledad shall apply xeriscape principles throughout the exterior landscape development, associated with such new construction, including such techniques and materials as native or low water use plants and low precipitation sprinkler heads, bubblers, drip irrigation systems and timing devices.

O. Retrofitting Existing Hotels and Motels. All existing hotels and motels shall, within six months following the effective date of the ordinance codified in this chapter, be retrofitted with shower heads with a maximum flow capacity of two and one-half gallons per minute.

P. Retrofitting Upon Change of Ownership or Use.
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1. All existing residential structures shall, at the time of change of ownership, be retrofitted, if not already so modified, with ultra low-flow toilets with a maximum tank size or flush capacity of one and one- half gallons, and shower heads with a maximum flow capacity of two and one-half gallons per minute.

2. All existing commercial and industrial structures shall, at the time of change of ownership or change of use, be retrofitted, if not already so modified, with ultra low-flow toilets with a maximum tank size or flush capacity of two and one-half gallons per minute.

Q. Indiscriminate Use. No person shall cause, suffer or permit the indiscriminate running of water not otherwise prohibited by the provisions set forth above which is wasteful and without reasonable purpose.

R. Use in Excess of Eighty-Five Percent of 1991 Use. No person shall consume water in excess of eighty-five percent of 1991 use. Water fees charged by the city shall be reviewed November, 1994, and in November every other year thereafter to determine if rates need to be changed to:

1. Address excessive use by any person(s); and

2. Provide sufficient revenue for the city to meet obligations and provide water services consistent with its policies.

S. Use of Water to Irrigate. No person shall use water to irrigate lawns, landscape or other turf areas which is not in accordance with local city and county ordinances. (Ord. 534 § 2 (part), 1993)

13.09.050 Warnings.

In order to encourage cooperative efforts to achieve water conservation, it shall be the policy of the city of Soledad to issue a written warning notice when an alleged violation is first noted. Such warning shall include an explanation of the alleged violation. Any individual provided with such notice will then be given an opportunity to correct the identified problem. However, if an infraction citation is issued and a prosecution commenced for the alleged violation, in no case shall proof of a violation depend upon the showing that a warning was previously given, nor shall failure to give a warning be a defense. (Ord. 534 § 2 (part), 1993)

13.09.060 Penalties.

A. Each violation of this chapter is an infraction.

B. Any violation that occurs or continues from one day to the next shall be deemed a separate violation, for each day during which such violation occurs or continues to occur.

C. The fine for a first violation of this chapter shall be fifty dollars. The fine for a second violation and each subsequent violation of this chapter within a period of twelve months, regardless of the specific section or subsection violated, shall be one hundred dollars.
(Ord. 534 § 2 (part), 1993)

13.09.070 Nuisance.

A. Any violation of this chapter is declared to be a public nuisance.

B. In accordance with the provisions of Chapter 9.04 of the Soledad Municipal Code, the city may, upon order of the city council, abate an identified public nuisance and/or bring civil action to enjoin or abate the nuisance 595
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and make the costs of nuisance abatement a special assessment against the parcel of land on which the nuisance is located or originates.

C. Nothing contained in this section limits the city to the prescribed remedy, or prevents the city from initiating and prosecuting any other remedy available to it for the abatement of a public nuisance, or for recovery of the cost of abatement, under the civil or criminal statutes of the state or under other ordinances of the city. (Ord. 534 § 2 (part), 1993)

13.09.080 Variances.

A. Any person may, at any time, apply in writing for a variance from strict application of this chapter. The application for the variance shall be filed with the city of Soledad.

The planning director may, in his discretion, temporarily dispense with the requirement to file a written application, if he finds that an emergency condition exists requiring immediate action on the variance request.

B. The city manager may grant a temporary variance of up to one year to come into compliance with the terms of this chapter upon making both of the following findings:

1. The strict application of the chapter would create an undue hardship, or an emergency condition exists which requires that the variance be granted; and

2. Granting the variance will not cause a significant adverse effect on the water supply or on service to other water consumers.

C. In granting a variance, the city manager may impose any conditions in order to ensure that the variance is consistent with the overall goal of water conservation. The granting of a variance and any conditions imposed upon such variance shall be set forth in writing.

D. Any decision of the city manager with respect to an application for a variance may be appealed in writing to the city council. The city council shall schedule the matter for hearing within thirty days of receipt. The city council may confirm, modify or rescind any decision of the city manager in this regard. The city council's decision on all variance appeals shall be final.
(Ord. 534 § 2 (part), 1993)

13.09.090 Revenues received from enforcement.

A. All revenues received by the city from enforcement of this chapter shall be used exclusively for city water conservation programs, including but not limited to administrative, monitoring and enforcement costs of mandatory water conservation.
(Ord. 534 § 2 (part), 1993)

13.09.100 Severability.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLEDAD ADOPTING THE 2025 WATER SHORTAGE CONTINGENCY PLAN (2025 WSCP), AND ORDERING THE 2025 WSCP TO BE FILED WITH THE CALIFORNIA
DEPARTMENT OF WATER RESOURCES BY JULY 1, 2026
WHEREAS, the California Urban Water Management Planning Act, (Water Code Section §§10610–10657 (the Act)), mandates that every urban supplier of water providing water for municipal purposes to more than 3,000 customers or supplying more than 3,000 acre-feet of water annually, prepare and adopt, in accordance with prescribed requirements a Water Shortage Contingency Plan (WSCP), the primary objective of which is to plan for drought management responses at six standard water shortage levels, and
WHEREAS, the City of Soledad meets the definition of an “Urban Water Supplier” due to the fact that the City provides water to more than 3,000 customers; and WHEREAS, pursuant to the Act, urban water suppliers are required to update, adopt and electronically submit WSCPs to the California Department of Water Resources following specific guidelines and procedures; and
WHEREAS, the 2025 WSCP is the fifth WSCP developed by the City; and WHEREAS, the WSCP shall be periodically reviewed at least once every five years, and the City of Soledad shall make any amendments or changes that are indicated by the review; and WHEREAS, the City of Soledad has therefore prepared in cooperation with other governmental agencies, and has utilized and relied on industry standards and professionals in preparing the 2025 WSCP, including but not limited to Rincon Consultants, Inc., and made available a Public Review Draft 2025 WSCP; and
WHEREAS, in accordance with applicable law, including California Water Code §10642 and §10608.26, a properly noticed public hearing regarding the 2025 WSCP was held by the City of Soledad on June 17, 2026, to provide members of the public and other interested entities with the opportunity to be heard in connection with the proposed adoption of the 2025 WSCP and issues related thereto; and
WHEREAS, the City Council of the City of Soledad has reviewed and considered the purposes and requirements of the Act, the contents of the 2025 WSCP, and the documentation contained in administrative record in support of the 2025 WSCP, and has determined that the factual analyses and conclusions set forth in the 2025 WSCP are legally sufficient; and WHEREAS, the City of Soledad desires to adopt and file the 2025 WSCP with the Department of Water Resources within thirty (30) days of the date of adoption; and WHEREAS, Section 10652 of the California Water Code provides that the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code (CEQA) does not apply to the preparation and adoption of the 2025 WSCP. 614
NOW THEREFORE, BE IT HEREBY RESOLVED, that the City Council of the City of Soledad as follows:

SECTION 1: The 2025 Water Shortage Contingency Plan (2025 WSCP), a copy of which is attached hereto and marked as Exhibit A, is hereby adopted and ordered filed with the City Clerk.

SECTION 2: The City Manager, or his/her designee, is hereby authorized and directed to file the 2025 WSCP with the California Department of Water Resources.

SECTION 3: The City Manager, or his/her designee, is further authorized, in accordance with California Water Code section 10621(d) and 10644(a)(I)(2), to make the adopted 2025 WSCP available for public review on the City of Soledad website, and to submit a copy of the 2025 WSCP to the California State Library, and to any city or county within which the City of Soledad provides water supplies no later than thirty (30) days after adoption.

SECTION 4. The City Manager, or his/her designee, is further authorized to declare a Water Shortage Emergency according to the Water Shortage Levels indicated in the 2025 WSCP, implement necessary elements of the 2025 WSCP, and recommend additional regulations to carry out effective and equitable allocation of water resources.

PASSED AND ADOPTED by the City Council of the City of Soledad at a regular meeting duly held on the 17th day of June 2026 by the following vote:

AYES, and in favor thereof, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ANNA M. VELAZQUEZ, Mayor
ATTEST:
____________________________
MEGAN HUNTER, City Clerk
615
City of Soledad 2025 Water Shortage Contingency Plan
Public Review Draft
prepared by
City of Soledad
Public Works Department
248 Main Street
Soledad, California 93960
Contact: Carla James, Water Resources Manager
prepared with the assistance of
Rincon Consultants, Inc.
80 Garden Court
Monterey, California 93940
June 2026
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Table of Contents
Public Review Draft i
Table of Contents
1 Introduction..................................................................................................................................................1 2 Water Supply Reliability Analysis................................................................................................................2

2.1 Supply Characterization..................................................................................................................2

2.1.1 Local Groundwater.........................................................................................................2

2.2 Reliability Assessment....................................................................................................................2

2.3 2026-2030 Drought Risk Assessment ...........................................................................................2

2.4 Water Supply Reliability Risks ........................................................................................................3 3 Annual Water Supply and Demand Assessment.......................................................................................4

3.1 Process to Conduct the Annual Assessment................................................................................4

3.2 Key Data Inputs and Evaluation Criteria.........................................................................................4

3.2.1 Available Water Supply ..................................................................................................4

3.2.2 Unconstrained Customer Demand................................................................................5

3.2.3 Planned Water Use for Current Year Considering Dry Subsequent Year....................5

3.2.4 Infrastructure Considerations .......................................................................................6

3.2.5 Other Considerations .....................................................................................................6 4 Six Standard Water Shortage Levels ..........................................................................................................7

4.1 Shortage Response Actions ...........................................................................................................7

4.1.1 Demand Reduction.........................................................................................................7

4.1.2 Supply Augmentation...................................................................................................10

4.1.3 Operational Changes....................................................................................................10

4.1.4 Additional Mandatory Restrictions..............................................................................10

4.1.5 Emergency Response Plan..........................................................................................10

4.1.6 Seismic Risk Assessment and Mitigation Plan..........................................................11

4.2 Shortage Response Action Effectiveness ...................................................................................11 5 Communication Protocols ........................................................................................................................12

5.1 Coordination ..................................................................................................................................12

5.2 Key Audiences ...............................................................................................................................12

5.3 Customer Outreach and Engagement Tools ...............................................................................12

5.3.1 Awareness and Education ...........................................................................................13

5.3.2 Communication through Action ..................................................................................13

5.4 Communication Objectives ..........................................................................................................13

5.5 Flexibility and Adaptability............................................................................................................14 6 Compliance and Enforcement ..................................................................................................................15

6.1 Temporary Variances....................................................................................................................15

6.2 Legal Authorities ...........................................................................................................................15 617
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ii
7 Financial Consequences of WSCP Implementation................................................................................17

7.1 Financial Impacts and Mitigation Action .....................................................................................17

7.1.1 Reporting Cost of Compliance with Excessive Water Use Prohibition During Drought Emergency......................................................................................................17 8 Monitoring and Reporting .........................................................................................................................18 9 Refinement Procedures ............................................................................................................................19 10 Special Water Feature Distinction ............................................................................................................20 11 Plan Adoption, Submittal, and Availability ...............................................................................................21 12 References .................................................................................................................................................22 Tables
Table 1 Water Shortage Contingency Plan Levels .........................................................................................7 Table 2 Demand Reduction Actions ...............................................................................................................8 Table 3 Communication Protocol During Water Shortage Conditions .......................................................14 Table 4 Enforcement During Water Shortage Conditions ...........................................................................15 Table 5 Notification to Cities and Counties..................................................................................................21 Attachments
Attachment A City of Soledad Municipal Code Section 13.09 Mandatory Water Conservation Regulations
Attachment B Public Notices
Attachment C Adoption Resolution
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Introduction
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1 Introduction
The City of Soledad (City) is responsible for conserving available water supply, protecting the integrity of water supply facilities and infrastructure, and implementing a contingency plan in times of drought, supply reductions, failure of water distribution systems, or emergencies. Particular emphasis is placed on use of domestic (potable) water, sanitation, fire protection, and preservation of public health, welfare, and safety, in addition to minimization of the adverse impacts of water supply shortage or other water supply emergency conditions that do not include recycled water.

The City has developed this Water Shortage Contingency Plan (WSCP) in accordance with California Water Code (CWC) Section 10632, which is part of the Urban Water Management Plan Act (Act) regulatory requirements and in alignment with the Department of Water Resources (DWR) 2025 UWMP Guidebook.

The WSCP describes the following:
• Water Supply Reliability Analysis. Summarizes the City’s water supply analysis and reliability and identifies the key issues that may trigger a shortage condition. • Annual Water Supply and Demand Assessment Procedures. Describes the key data inputs, evaluation criteria, and methodology for assessing the system’s reliability for the coming year and the steps to formally declare any water shortage levels and response actions. • Six Standard Water Shortage Levels. Establishes water shortage levels to clearly identify and prepare for shortages.
• Shortage Response Actions. Describes the response actions that may be implemented or considered for each stage to reduce gaps between supply and demand as well as minimize social and economic impacts to the community.
• Communication Protocols. Describes communication protocols under each stage to ensure customers, the public, and City Council are informed of shortage conditions and requirements. • Compliance and Enforcement. Defines compliance and enforcement actions available to administer demand reductions.
• Legal Authority. Lists the legal documents that grant the City the authority to declare a water shortage and implement and enforce response actions.
• Financial Consequences of WSCP Implementation. Describes the anticipated financial impact of implementing water shortage stages and identifies mitigation strategies to offset financial burdens. • Monitoring and Reporting. Summarizes the monitoring and reporting techniques to evaluate the effectiveness of shortage response actions and overall WSCP implementation. Results are used to determine if additional shortage response actions should be activated or if efforts are successful and response actions should be reduced.
• WSCP Refinement Procedures. Describes the factors that may trigger updates to the WSCP and outlines how to complete an update.
• Special Water Features Distinction. Identifies exemptions for ponds, lakes, fountains, pools, and spas, etc.
• Plan Adoption, Submittal, and Availability. Describes the process for the WSCP adoption, submittal, and availability after each revision.

This WSCP provides the strategic responses the City may take if a water shortage is declared to conserve and manage water resources essential to maintain public health and community vitality. It is included as an appendix to the 2025 UWMP. However, this WSCP is separate from the City’s 2025 UWMP and can be amended, as needed, without amending the 2025 UWMP.
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2 2 Water Supply Reliability Analysis

2.1 Supply Characterization
The City provides potable water to customers through the operation of five active municipal groundwater wells. The groundwater wells have a combined total pumping capacity of about 4,788 gallons per minute (gpm) and a firm capacity of 3,260 gpm. The capacity is sufficient for all areas within the existing city limits and within some areas designated for growth. The City has been proactive with respect to improving and developing its water supply system, including proactive planning for the development of additional sources to keep up with additional demand due to future growth. To ensure a reliable water supply, the City is developing a Recycled Water Conveyance (RW) Project for irrigation of City-owned parks and school turf and landscape areas. Use of recycled water is anticipated to begin in late 2026. A detailed description of the City’s water supply characterization is discussed in Chapter 6 of the UWMP.

2.1.1 Local Groundwater
The City’s main source of water supply is groundwater from the Basin Fill Aquifer within the Forebay Aquifer Subbasin (Forebay Subbasin) in the Salinas Valley Groundwater Basin (Basin) (DWR Subbasin No. 3-004.04), a medium-priority basin under the Sustainable Groundwater Management Act (SGMA). The Subbasin is managed under a DWR-approved Groundwater Sustainability Plan (GSP) by two Groundwater Sustainability Agencies (GSAs), the Salinas Valley Basin Groundwater Sustainability Agency (SVBGSA) and the Arroyo Seco GSA (ASGSA). The City is a member of the SVBGSA.

Recent monitoring indicates groundwater levels remain above minimum thresholds established in the GSP, with no undesirable results identified under SGMA. Municipal pumping by the City represents a small portion of total Forebay Subbasin groundwater extraction. Groundwater quality is generally suitable for municipal use, and the City’s supply meets all state and federal drinking water standards following treatment. Groundwater availability and quality do not currently constrain the City’s water supply but are monitored through SGMA and ongoing regulatory programs. A detailed description of local groundwater is provided under Section 6.2.2 of the 2025 UWMP.

2.2 Reliability Assessment
Chapter 7 of City’s 2025 UWMP describes the reliability of the City’s water supply by comparing supply and demand projections through 2050 for normal year, single-dry year, and multiple dry years. The chapter also assesses the drought risk over the next five years (2026 to 2030) assuming the driest fiveyear period is repeated over the next five years. Water supply reliability reflects the City’s ability to meet the water needs of its customers with water supplies under varying conditions. The analysis considers plausible hydrological and regulatory variability, climate conditions, and other factors that affect the City’s water supply and demand. The 2025 reliability analysis indicates that the City’s water supplies are reliable, and no shortages are anticipated.

2.3 2026-2030 Drought Risk Assessment
CWC Section 10635 (b) requires a Drought Risk Assessment (DRA) to be included in the UWMP. The DRA provides an overview of the anticipated surplus or deficit if a drought were to occur in the next five years.

The DRA evaluates each water supply’s reliability and compares available water supplies and projected demands during a five-consecutive dry-year scenario. This short-term analysis can help water suppliers foresee undesired risks, such as upcoming shortages, and provide time to evaluate and implement the 620
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necessary response actions needed to mitigate shortages in a less impactful manner to the community and environment.

The DRA applies the five driest consecutive historical hydrologic years (2011–2015) to the 2026–2030 planning period to represent a conservative multiple dry year scenario. The analysis uses the same methodology and assumptions as the multiple dry year evaluation in the Water Service Reliability Assessment. Unconstrained potable water demand from 2025 serves as the baseline, with demand increases of 8% in the first year of drought and 1% in each subsequent year. The analysis assumes the City would implement demand reduction actions under the WSCP beginning in the second year of a multiyear drought, resulting in an estimated cumulative annual demand reduction of 2.5%.

Water supply availability for the DRA is based on the City’s current firm potable well capacity of 5,258 acre-feet per year (AFY), which is conservatively assumed to remain constant through 2030. Even under the projected multi-year drought scenario, estimated peak potable water demand remains well below available firm supply. As a result, the City’s potable water service reliability is projected to be 100% in each year of the five-year drought scenario.

The DRA concludes that a water shortage condition due to extended drought is not expected to occur during the 2026–2030 period. However, the City will continue to implement and refine water use efficiency programs and maintain preparedness measures identified in the WSCP to ensure long-term water supply reliability under a range of hydrologic conditions.

2.4 Water Supply Reliability Risks
The City’s water supply may be threatened by different risks which are summarized below and detailed in Chapter 7 of the 2025 UWMP.

As mentioned above, the City relies exclusively on groundwater from the Forebay Subbasin to meet potable demands. Water supply reliability risks are primarily associated with infrastructure vulnerability, groundwater availability, water quality, and future recycled water constraints.

Groundwater supply may be disrupted by well or system failures caused by equipment malfunctions, earthquakes, flooding, or other emergencies. While the City’s firm potable well capacity is adequate to meet current demands, recent temporary well outages in 2024 demonstrated short‑term operational vulnerability that required voluntary conservation measures. The City continues to invest in infrastructure improvements to enhance system reliability.

Long‑term groundwater availability depends on the sustainable yield of the Forebay Subbasin under SGMA. Groundwater levels currently remain above established minimum thresholds, and no undesirable results have been identified. However, groundwater availability may be affected over time by climate‑driven changes to recharge and hydrologic conditions.

Groundwater quality is generally suitable for municipal use and consistently meets state and federal drinking water standards following treatment. Naturally occurring constituents and agricultural land use represent the primary long‑term water quality considerations and could affect future treatment needs.

Beginning around 2030, recycled water will offset potable groundwater use for landscape irrigation, improving overall supply reliability. Recycled water use may be constrained by elevated total dissolved solids, particularly under reduced wastewater flows associated with long‑term conservation requirements, potentially limiting suitability for certain landscape irrigation uses.

Emergency supply disruptions are addressed through the City’s Emergency Operations Plan (EOP) and the WSCP. No legal or institutional constraints have been identified that would limit access to the City’s water supplies.
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4 3 Annual Water Supply and Demand
Assessment
As an urban water supplier, the City is required under CWC Section 10632(a)(2) to prepare and submit an “annual water supply and demand assessment” (Annual Assessment). The Annual Assessment is a determination of the City’s near-term outlook for supplies and demands and how a perceived shortage may relate to WSCP shortage level response actions in the current calendar year. This determination will be based on known circumstances and information available to the City at the time of analysis.

Starting in 2022, the Annual Assessment will be due by July 1 of each year, as indicated by CWC Section 10632.1. The Annual Assessment and related reporting are to be conducted based on the procedures described in this WSCP. This section describes the City’s procedures for conducting the Annual Assessment, which includes (1) the written decision-making process to determine water supply reliability and (2) the key data inputs and assessment methodology to evaluate water supply reliability for the current year and one dry year.

Separate from the requirements of the WSCP Annual Assessment, the City is also subject to SWRCB drought and conservation reporting under Order No. DDW_HQ_2024_001. As a community public water system and urban retail water supplier, the City submits applicable drought and conservation reports through the SAFER Clearinghouse in accordance with SWRCB instructions.

3.1 Process to Conduct the Annual Assessment
The City’s Annual Assessment will primarily be based on the water supply planning, forecasting, and water budgeting of the Forebay Subbasin as a whole and specifically the Basin Fill Aquifer. The City will work closely with the Monterey County Water Resources Agency, (MCWRA), the SBVGSA, and others to assess the Basin condition.

The City will perform an assessment as discussed below. If the assessment indicates a current or expected shortage level, the City Council shall vote on the findings of the Annual Assessment and, if necessary, trigger implementation of any water shortage response actions resulting from the Annual Assessment through a resolution. The steps to complete the Annual Assessment are described below.

3.2 Key Data Inputs and Evaluation Criteria
On or before June 1 of each year, the City will evaluate water supply reliability for the current year and one dry year for the purpose of the Annual Assessment. The Annual Assessment determination will be based on considerations of local water supplies, unconstrained water demand, planned water use, and infrastructure considerations. The balance between projected Forebay Subbasin supplies and anticipated unconstrained demand will be used to determine what, if any, shortage level is expected under the WSCP framework. The WSCP’s standard shortage levels are defined in terms of shortage percentages. The assessment will be performed separately for anticipated current year conditions and for assumed dry year conditions.

3.2.1 Available Water Supply
Available water supply for the City is quantified each year by summing the capacity of each groundwater well, in gpm. An analysis of one subsequent dry year is also completed. Since the City’s water supply has not historically been impacted by drought, it is likely that the available supply for the subsequent dry year will be the same as the current year.
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3.2.2 Unconstrained Customer Demand
The WSCP and Annual Assessment define unconstrained demand as expected water use prior to any projected shortage response actions that may be taken under the WSCP. Unconstrained demand is distinguished from observed demand, which may be constrained by preceding, ongoing, or future actions, such as emergency supply allocations during a multi-year drought. WSCP shortage response actions to constrain demand are inherently extraordinary. Routine activities, such as ongoing conservation programs and regular operational adjustments, are not considered constraints on demands. The City uses historical water use, by customer classification, to inform demand trends as it relates to known development, weather, and economic conditions in the city. Additionally, the City factors in land use planning data to improve demand forecasts.

Water Use and Connections. Water use can be quantified by summing the meter usage of each customer class for the previous year. Customer water demands for the City can be projected for the upcoming year based on the previous year’s water usage and the number of anticipated new customer connections.

Population. To calculate the annual future population, multiply the number of anticipated new customer connections by the number of persons per household as shown on the U.S. Census Bureau website for the City. That number shall be added to the current population to obtain the future population.

Future Population = Current Population + Number of New Connections x Persons per Household Anticipated Water Demand. To calculate anticipated demands for the upcoming year, multiply each meter usage per customer class by the future population and divide it by the current population.

Anticipated Demand = [Meter Usage x Future Population]÷/Current Population If the available water supply is greater than the anticipated customer demand for the upcoming year, then the City does not need to take any further action. If the anticipated customer demand for the upcoming year is greater than the available water supplies, the City can initiate water conservation actions as detailed in this WSCP.

3.2.3 Planned Water Use for Current Year Considering Dry Subsequent Year
CWC Section 10632(a)(2)(B)(ii) requires the Annual Assessment to determine “current year available supply, considering hydrological and regulatory conditions in the current year and one dry year.” The Annual Assessment will include two separate estimates of annual water supply and unconstrained demand using (1) current year conditions and (2) assumed dry year conditions. Accordingly, the Annual Assessment’s shortage analysis will present separate sets of findings for the current year and dry year scenarios. The CWC does not specify the characteristics of a dry year, allowing discretion to the water supplier. The City will use its discretion to refine and update its assumptions for a dry year scenario in each Annual Assessment as information becomes available and in accordance with best management practices.

In the City’s 2025 UWMP, the “single dry year” is characterized to resemble conditions as a year in which conditions reflect the lowest water supply available to the City. Supply and demand analyses for the single-dry year case were based on conditions affecting the Forebay Subbasin. However, as presented, the City’s water supply has not historically been impacted by drought. Therefore, planned water use for the current year may not be impacted by an anticipated subsequent dry year. Even so, each Annual Assessment will be performed.
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6 3.2.4 Infrastructure Considerations
Infrastructure reliability, capability, and construction considerations are included as part of the Annual Assessment. The City’s infrastructure capabilities are constantly monitored by water utility management, operations, and engineering staff and communicated if adjustments in water supplies are required throughout the year. If infrastructure projects are anticipated for the upcoming year that could impact water supply production (e.g., repairs at treatment plant, new groundwater well), these water supply impacts shall be evaluated for the time frame (i.e., months) the infrastructure projects will impact the system. Thus, the available water supply shall be increased or reduced accordingly for each month.

3.2.5 Other Considerations
The following are locally applicable factors that can influence or disrupt supplies, along with other unique considerations that are considered as part of the Annual Assessment:
• Construction projects
• Planned and unplanned outages on any major infrastructure • Demand fluctuations with weather changes
• Natural disasters, such as fires, earthquakes, or pandemics • Electrical outages
• Water quality
• Equipment failures
• Water Treatment Plant or Water Reclamation Facility disruptions • Legal or regulatory issues that disrupt water reliability 624
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4 Six Standard Water Shortage Levels
As required by CWC Section 10632(a)(3)(A), the WSCP is framed around six standard water shortage levels that represent shortages from the normal reliability as determined in the Annual Assessment.

The six water shortage levels have been standardized by the CWC to provide a consistent regional and statewide approach to conveying the relative severity of water supply shortage conditions. The six standard shortage levels correspond to progressively increasing estimated shortage conditions (up to 10, 20, 30, 40, 50, and greater than 50% water shortages) and align with the response actions the City may implement to meet a declared water shortage or emergency.

The levels will be implemented during water supply shortages or regional drought conditions that may or may not directly influence the City’s water supplies. The level of determination and declaration of a water supply shortage will be made by the City Council.

For example, if the Annual Assessment determines a shortage of 17%, the City would implement shortage response actions under Standard Shortage Level 2. Table 1 lists the six water shortage levels.

Table 1 Water Shortage Contingency Plan Levels
Standard Shortage Levels % Shortage Range
1 Up to 10%
2 Up to 20%
3 Up to 30%
4 Up to 40%
5 Up to 50%
6 >50%

4.1 Shortage Response Actions
CWC Section 10632(a)(4) requires the WSCP to specify shortage response actions that align with the defined shortage levels. Shortage response actions included in this WSCP are a mix of prohibitions on end use, demand reduction methods, supply augmentation, and operational change measures. DWR defines prohibitions on end uses as measures to address areas that are the responsibility of end users, such as a broken sprinkler or leaking faucet.

4.1.1 Demand Reduction
The City supports the efficient use of water at all times. As such, the City has a baseline of permanent water use restrictions and measures that apply during normal supply or water shortage conditions (see Section 4.2.4). The City promotes individual actions on an on-going basis through its education and outreach resources.

The City has identified a variety of demand reduction actions to offset water supply shortages. Demand reduction measures are strategies intended to decrease water demand to close the gap between supply and demand. The City employs a variety of techniques to encourage community members to be more involved and educated about water conservation. These techniques include actions planned to be taken at the consumer level including, but not limited to, leak detection and repair, limitations on irrigation, and additional voluntary actions to reduce customer demand.

A full list of demand reduction methods performed at various supply shortage stages are provided in Table 2 and discussed below. The shortage gap reduction ranges shown for individual demand reduction actions represent the total anticipated reduction associated with the applicable shortage level. Actions are implemented collectively, and their individual effects are overlapping and not discretely quantifiable. 625
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8 Table 2 Demand Reduction Actions
DWR Submittal Table 8-3 Retail: Demand Reduction Actions Water Code Section 10632(a)(4)(B) and (E)
Shortage
Level Demand Reduction Actions
How much is this going to reduce the shortage gap?
Additional Explanation or Reference
Penalty, Charge, or
Volume or Percentage Shortage Gap Reduction Value Other Enforcement? 1 Expand Public Information Campaign Percentage Up to 10% Increasing customer outreach and engagement tools from WSCP Section 5.3 No 1 Landscape - Other landscape restriction or prohibition Percentage Up to 10% Encourage outdoor water use efficiency No 2 Expand Public Information Campaign Percentage 10–20% Increasing customer outreach and engagement tools from WSCP Section 5.3 No 2 Other Percentage 10–20% Voluntary reductions No
3 Expand Public Information Campaign Percentage 10–20% Increasing customer outreach and engagement tools from WSCP Section 5.3 No 3 Landscape - Limit landscape irrigation to specific days Percentage 20–30% Existing landscape (including Golf Course and Athletic Fields out-of-play areas) limited to 2 days/week; New landscape for adequate growth up to 5 weeks Yes
3 Landscape - Limit landscape irrigation to specific times Percentage 20–30% Golf courses/Athletic fields in-play areas before 10 am or after 5 pm Yes 3 CII - Lodging establishment must offer opt out of linen service Percentage 20–30% Offer limited linen/towel exchange Yes 3 CII - Other CII restriction or prohibition Percentage 20–30% Compliance with outdoor water use required Yes 3 Other - Prohibit use of potable water for construction and dust control Percentage 20–30% Yes 3 Other Percentage 20–30% Vehicle washing on assigned landscape watering days Yes 4 Expand Public Information Campaign Percentage 10–20% Increasing customer outreach and engagement tools from WSCP Section 5.3 No 4 Landscape - Limit landscape irrigation to specific days Percentage 30–40% Existing landscape (including Golf Course and Athletic Field out-of-play areas) limited to 1 day/week; New landscape 3 days/week for 5 weeks, then 1 day/week Yes
4 Landscape - Limit landscape irrigation to specific days Percentage 30–40% Golf courses/Athletic fields in-play areas before 10 am or after 5 pm Yes 4 CII - Lodging establishment must offer opt out of linen service Percentage 30–40% Towel exchange limited to once every 2 nights or for entire stay, whichever shorter Yes 4 Other water feature or swimming pool restriction Percentage 30–40% Draining/refilling only if pool component has become hazardous; must be covered to avoid evaporation
Yes
4 CII - Other CII restriction or prohibition Percentage 30–40% Vehicle washing on assigned landscape watering days/hours; limited fleet washing Yes 4 Other Percentage 30–40% All water use reduction encouraged; Mandatory use reduction targets, as established by City Council
Yes
5 Expand Public Information Campaign Percentage 10–20% Increasing customer outreach and engagement tools from WSCP Section 5.3 No 5 Landscape - Limit landscape irrigation to specific days Percentage 40–50% All days prohibited, except for new landscape Yes 5 Landscape - Limit landscape irrigation to specific times Percentage 40–50% All times prohibited, except for new landscape Yes 5 CII - Lodging establishment must offer opt out of linen service Percentage 40–50% Towel exchange limited to once every 3 nights, or for entire stay, whichever shorter Yes 5 Other water feature or swimming pool restriction Percentage 40–50% All filling/draining/re-filling prohibited Yes 5 Other - Prohibit vehicle washing except at facilities using recycled or recirculating water
Percentage 40–50% Yes
5 CII - Other CII restriction or prohibition Percentage 40–50% Mandatory use reduction targets, as established by City Council Yes 5 Other Percentage 40–50% Mandatory construction water budgets, as established by City Council Yes 6 Expand Public Information Campaign Percentage 10–20% Increasing customer outreach and engagement tools from WSCP Section 5.3 No 6 Landscape - Prohibit certain types of landscape irrigation Percentage Greater than 50% Elimination of all turf irrigation with potable supplies; restrict watering to shrubs and trees by hand or drip irrigation only
Yes
6 Landscape - Other landscape restriction or prohibition Percentage Greater than 50% Shutoff of dedicated landscape meters Yes 6 CII - Restaurants may only serve water upon request Percentage Greater than 50% Yes 6 Moratorium or Net Zero Demand Increase on New Connections Percentage Greater than 50% Moratorium on provision of new customer meters Yes 6 Other - Prohibit use of potable water for construction and dust control Percentage Greater than 50% Elimination of issuance of construction (hydrant) meters Yes 6 Other Percentage Greater than 50% Other mandatory restrictions and enforcement Yes 626
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10 4.1.2 Supply Augmentation
The City does not plan to utilize additional supply sources during a water shortage but rather mitigate supply impacts through demand reduction actions and/or utilize additional imported water to meet demands. Therefore, no supply augmentation and other actions are reported.

4.1.3 Operational Changes
During shortage conditions, operations may be affected by demand reduction responses. Operational changes to address a water shortage may be implemented based on the severity of the reduction goal.

The City, with City Council approval as needed, will consider their operational procedures at the time of a shortage to identify changes they can take to maximize supply and reduce demand during a water shortage stage.

4.1.4 Additional Mandatory Restrictions
In addition to any shortage response level being declared, the City maintains the following prohibitions and restrictions at all times. Per the City’s Ordinance 534 Section 2 (part), 1993, Chapter 13.09, Mandatory Water Conservation (Attachment A), the following is an abbreviated list from the Ordinance:
• Repair plumbing, sprinkler, and irrigation systems in a reasonable time after identification of leaks. • No using potable water through a hose to wash vehicles, clean the exterior of any building or structure, or clean paved or hard-surfaced areas unless the hose is equipped with an automatic shutoff nozzle. • No spilling water into streets, curbs, or gutters or to cause any runoff. • No emptying and refilling of swimming pools/spas except to repair structural damage or comply with public health regulations.
• Only use recycled (recirculated) water in decorative fountains. • No use of potable water for construction activities where there is a reasonably available source of recycled water.
• The City shall maintain a distribution system leakage detection and repair program. • New construction shall have ultra-low-flow toilets, low-flow showerheads, water recirculating systems and, if requiring a permit, shall apply drought-tolerant landscaping principles. • Retrofit toilets and showerheads to ultra-low-flow and low-flow devices on change of ownership. • No indiscriminate running of water which is wasteful and without reasonable purpose. • Maintain irrigation of lawns, landscape, and other turf areas in accordance with City and county ordinances.

4.1.5 Emergency Response Plan
The UWMP Act requires water suppliers to identify actions they will take if there is a catastrophic supply interruption, specifically including interruptions from a power outage, earthquake, or other non-droughtrelated emergency. In March 2020, the City adopted an Emergency Operations Plan (EOP) to ensure the most efficient use of resources to protect its community and its property before, during, and after a natural, technological, or man-made emergency, including cyberattacks. The EOP is an extension of the State Emergency Plan and the Monterey County Operational Area Plan. The EOP is designed to assist City and other staff members who have key roles and responsibilities for responding during emergencies.

The EOP includes a Hazard Analysis that identifies designated City-owned critical infrastructure which includes water and wastewater facilities. The EOP includes guidelines and agreements for cooperative efforts with other state and local agencies, as required by the California Department of Public Health. 628
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The City also prepared Emergency Actions Plans, which would initiate in the event of a catastrophic reduction of its water supply. The Emergency Actions Plans provide designated personnel with knowledge of the incident objectives and the steps required for achievement. The plans also serve to provide a basis for measuring achievement of objectives and overall system performance.

Additionally, the City is a member of the California Water/Wastewater Agency Response Network (CalWARN). The mission of CalWARN is to support and promote statewide emergency preparedness, disaster response, and mutual assistance processes for public and private water and wastewater utilities.

CalWARN expands member abilities to achieve agency, regional, and state preparedness by providing tools and proven practices to enhance readiness.

4.1.6 Seismic Risk Assessment and Mitigation Plan
CWC Section 10632.5(c) requires the WSCP to include a seismic risk assessment and mitigation plan to assess the vulnerability of each water facility. The City relies on the 2022 Monterey County Multi‑Jurisdictional Hazard Mitigation Plan (MJHMP) to meet this requirement.

Monterey County is in an active seismic region that includes several major faults, such as the San Andreas Fault. Earthquakes occur regularly in the region, with multiple small events recorded each year and the potential for moderate or larger damaging earthquakes at any time. As reflected in the 2022 MJHMP, the U.S. Geological Survey indicates a meaningful likelihood of a major earthquake affecting the area in the coming decades.

According to the 2022 MJHMP, all areas of the City experience a moderate level of shaking risk, and several critical public facilities could be affected during a significant seismic event. The City’s hazard mitigation strategy prioritizes identifying vulnerable facilities and implementing structural or non‑structural improvements, as feasible, to reduce damage and maintain essential services. These actions are intended to help ensure that critical infrastructure, including water facilities, can continue to operate before, during, and after an earthquake.

4.2 Shortage Response Action Effectiveness
As a standard operating procedure, the City tracks water through the production, distribution, and billing systems. The City’s annual Water Loss Audit reporting to DWR helps identify non-revenue water loss.

During water shortage conditions, water use can be measured in comparison to what is considered to be a normal year demand (i.e., current customer base with approximately average rainfall), or in reference to a specific base year as may be dictated by Statewide requirements.

The effectiveness of actions initiated at each shortage response have been included in Table 2.

Effectiveness is also impacted by successful communication and outreach efforts. For WSCP implementation, it is assumed that the upper end of the water savings would come from the use of multiple demand reduction actions in a stage.
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12 5 Communication Protocols
Timely and effective communication is a critical element of WSCP implementation. Per CWC Section 10632(a)(5), the City has established communication protocols and procedures to inform customers, the public, interested parties, and local, regional, and state governments regarding any current or predicted shortages as determined by 1) the Annual Assessment (Section 3 of this WSCP) described pursuant to Section 10632.1; 2) any shortage response actions triggered or anticipated to be triggered by the Annual Assessment described pursuant to Section 10632.1; and 3) any other relevant communications.

Strategic communication is an ongoing activity where the purpose, audience, message, tools, and channels may change at any given moment. In the context of water shortage response, the purpose may be an emergency water shortage situation, such as may result from an earthquake, or a longer-term, nonemergency, shortage condition, such as may result from a drought.

In an emergency, the City will activate the communication protocol detailed in the City’s EOP. In a nonemergency water shortage situation, the City will implement communication protocols outlined in this section.

5.1 Coordination
To communicate effectively during a water supply shortage, the WSCP implements coordination with various levels of City management, Forebay Subbasin manager, Monterey County Water Resources Agency, and other regional planning groups, including the Water Awareness Committee of Monterey County (WAC) and the Greater Monterey County Integrated Regional Water Management Program which includes 19 agency representatives in the region.

During droughts or other times of limited supply, the frequency and extent of coordination will increase to ensure outreach tactics are consistent with the changing needs of the region and, specifically, the City and its customers. The City will seek opportunities to leverage external resources to complement its own outreach and lean on the key community partnerships it has forged to coordinate and facilitate communication.

5.2 Key Audiences
The City’s water customers inside and outside of the City limits, and other water users inside the City’s service area are the key audiences.

5.3 Customer Outreach and Engagement Tools
Water efficiency as a sustainable way of life remains central to City messaging during normal supply conditions. Indoor and outdoor water use efficiency, sustainable landscaping principles, rebate programs, investments to maintain infrastructure, emergency preparedness, local supply programs, water quality, and local supply reliability are among some of the themes that are in the City’s communications mix to promote, normalize, and advocate for water conserving ethics and activities.

Below is a summary of various strategies and activities the City uses or may use for communication that could be strategically ramped up in a water shortage condition as part of Demand Reduction Actions listed in Table 2.
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5.3.1 Awareness and Education
• City website and subpages
• Social media (Instagram, Facebook, YouTube, NextDoor) • eNewsletter
• Emails to customers
• Emails and correspondence to County, state, and local elected officials • Media relations (press releases, interviews, op-eds)
• FAQ sheet/fact sheets
• Digital, print, and other paid media marketing
• Direct mail (bill messages/inserts, postcards, targeted letters) • Community events
• Education outreach (e.g., school programs)
• Resources (water efficiency “how to” videos, lead detection guides, landscape design templates, etc.) • Roadway signage

5.3.2 Communication through Action
• In-person, phone-based and virtual customer assistance • On-site customer assistance (site surveys)
• Community events and demonstrations

5.4 Communication Objectives
The City will periodically provide the public with information about the WSCP using any of the outreach methods in Section 5.5. During water shortage conditions and when urgent conservation is needed, the City believes it is important to communicate the following to customers:
• Why water needs to be saved
• How much water needs to be saved and for how long (shortage level initiated and terminated) • Specific actions needed to save water
• What the City, along with the water industry as a whole, is doing to remedy the water shortage condition
To that end, communication objectives during the various water shortage levels of the WSCP include the following:
• Motivate water users to increase conservation in ways that are consistent with any voluntary or mandatory actions called for at the current level of the WSCP • Raise awareness and understanding of the drought, regulatory, or other condition affecting water supplies and the need for increased conservation
• Minimize confusion and maintain credibility of water agencies and conservation messages with an appropriate tone that invokes trust and avoids non-compliance backlash • Make water users feel appreciated for accomplishments in improving their water use efficiency, and for supporting regional and local investments in water supply reliability • Educate civic and business leaders and the public that the City has improved its water supply reliability and is committed to furthering local, sustainable, and reliable supplies 631
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14 • Prepare the City’s customers for any potential escalation (or de-escalation) of the WSCP based on trending supply conditions
• Ensure customers and stakeholders believe they are being treated equitably in relationship to others • Maintain communication effectiveness by soliciting or monitoring feedback from regional water agencies/managers, key stakeholders, and the general public to update or adapt messages or communication tools
• Depart WSCP implementation having demonstrated the effectiveness and value of conservation actions and water supply reliability investments in minimizing impacts to customer’s quality of life or the community’s economy

5.5 Flexibility and Adaptability
To reduce water consumption during all water shortage levels, the City will increase its public education and outreach efforts to build awareness of demand reduction actions with the public. In addition, the City’s outreach efforts will be regularly revised to reflect current conditions. Key communication strategies and associated water shortage level implementation are listed in Table 3 below.

Communication strategies established from previous shortage levels are assumed to be built upon or intensified should water shortage conditions worsen.

Table 3 Communication Protocol During Water Shortage Conditions Stage Action
1-6 Announce status change to key stakeholders and the general public Provide regular updates to customers and the media on conditions 1-2 Increase agency coordination via monthly meetings
2 Conduct issue briefings with key officials and civic and business leaders Target outreach to dedicated irrigation accounts, particularly with homeowners associations to leverage their relationships and communication with their residents and/or sub-associations 3-4 Promote available water assistance resources for vulnerable populations; customized outreach for impact customer groups
Conduct specialized outreach to reduce discretionary outdoor use while minimizing landscape damage 5-6 Suspend promotion of long-term water use efficiency programs/tools to focus on imminent needs 6 Perform crisis communication, as outlined in the City’s Emergency Operations Plan; outreach messaging will reflect emergency conditions and the need to focus on health and public safety 1 If a water shortage progresses through multiple stages all measures in the previous stage(s) are implemented in addition to current stage actions.
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6 Compliance and Enforcement
CWC Section 10632(a)(6) describes compliance and enforcement provisions for the WSCP. The City aims to educate its customers when violations occur, to avoid repeat violations and future water waste. If educational efforts are not applicable or effective for customers who do not comply with restrictions implemented in a water shortage emergency, the City will use the enforcement measures found in Chapter 13.09 of the City’s Municipal Code (Attachment A). Fines, the installation of a flow-restricting device, and other civil or criminal penalties may apply as described in Table 4 below.

Table 4 Enforcement During Water Shortage Conditions
Stage Action
2 City issues a written warning notice when an alleged violation is first noted Penalties (fines) applied to each violation are identified as follows:

First Violation: $50 fine
Second and Subsequent Violations: $100 fine
3-6 City issues a written warning notice when an alleged violation is first noted If the violation is not corrected after one written warning notice, the City shall install a flow restrictive device on the service line of any customer observed by City personnel to be using water for any nonessential or unauthorized use Repeated violations of unauthorized water use will result in discontinuance of water service

6.1 Temporary Variances
As described in Chapter 13.09 of the City’s Municipal Code, the City may grant temporary variances from water conservation requirements in cases of undue hardship or emergency conditions, consistent with the Municipal Code. Variance applications are submitted in writing, except in emergencies where the Community and Economic Development Director may waive this requirement. The City Manager may approve a variance for up to one year upon finding that the variance will not result in a significant adverse effect on the water supply or service to other customers. Conditions may be imposed to ensure consistency with the City’s water conservation goals. Decisions may be appealed to the City Council, whose determination is final.

6.2 Legal Authorities
The City has the legal authority to implement and enforce its WSCP. California Constitution Article X – Water, Section 2, and CWC Section 100 provide that water must be put to beneficial use, the waste or unreasonable use or unreasonable method of use of water shall be prevented, and the conservation of water is to be exercised with a view to the reasonable and beneficial use thereof in the interest of the people and the public welfare. In addition, CWC Section 375 provides the City with the statutory authority to adopt and enforce water conservation restrictions, and CWC Section 350 et seq. authorizes the City to declare a water shortage emergency and impose water conservation measures when it determines that the City may not be able to satisfy ordinary demands without depleting supplies to an insufficient level.

If necessary, the City shall declare a water shortage emergency in accordance with CWC Chapter 3 (commencing with Section 350) of Division 1. Once having declared a water shortage, the City is provided with broad powers to implement and enforce regulations and restrictions for managing a water shortage. 633
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16 Under California law, including CWC Chapters 3.3 and 3.5 of Division 1, Parts 2.55 and 2.6 of Division 6, Division 13, and Article X, Section 2 of the California Constitution, the City is authorized to implement the water shortage actions outlined in this WSCP. In water shortage cases, shortage response actions to be implemented will be at the discretion of the City and will be based on an assessment of the supply shortage, customer response, and need for demand reductions as outlined in this WSCP.

In addition, upon proclamation by the Governor of a state of emergency under the California Emergency Services Act (Chapter 7, commencing with Section 8550, of Division 1 of Title 2 of the Government Code) based on drought conditions, the State will defer to implementation of locally adopted WSCPs to the extent practicable.

The City has the legal authority to declare a water shortage and implement the actions outlined in this WSCP to restrict water use and prohibit water waste for all uses that are not necessary to sustain public health, sanitation, and fire protection.
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7 Financial Consequences of WSCP
Implementation
CWC Section 10632(a)(6) describes the financial consequences of implementing the WSCP and potential mitigation strategies. The City’s water rates were modified in 2021 which included increases for water and wastewater through 2026 due to development of critical capital improvement projects, and repair and replacement of facilities and infrastructure that are designed to increase service reliability and help the City reduce its risk of water shortages in the future. In 2025, the City initiated an updated Water, Sewer, and Recycled Water Rate Study to evaluate future revenue requirements and ensure continued compliance with Proposition 218 and long‑term utility financial planning.

7.1 Financial Impacts and Mitigation Action
In the event that the City implements the WSCP, it is recognized that the reductions in water sales would impact the revenues that would normally be generated to the Water Enterprise Fund. However, the City’s Water Enterprise Fund revenues may vary according to regional weather, the economy, and other factors.

For example, in dry years, local demands tend to increase, and the City may receive higher than anticipated revenues due to increased sales volumes. In contrast, in wet years, demands tend to decrease, and revenues drop due to lower sales volumes. Such revenue surpluses and shortages could cause instability in water rates.

To the extent that this reduction negatively impacts the coverage of its fixed costs (those that are not tied to volume), the City will temporarily utilize its Water Reserves to mitigate any shortfall. Maintaining financial reserves is a way the City can manage rate volatility. The reserves are fully flexible to use appropriately, including funds dedicated for rate stabilization. The reserves can, therefore, be a useful tool to offset the need for revenues during times of lower water sales or unanticipated water supply costs.

7.1.1 Reporting Cost of Compliance with Excessive Water Use Prohibition During Drought Emergency
To mitigate the effects of volumetric revenue volatility, the City seeks to maintain volumetric water rates, which closely match its volumetric cost of water produced. The City additionally generates a significant portion of total water sales revenues from the fixed water charge (flat rate), which is based on the size of the water meter. The City’s fixed charge is designed to capture nearly all the City’s fixed costs to provide water services, such as water quality testing, environmental compliance, administrative costs, maintenance and repair of facilities and assets, and capital expenditures that enhance local water supply reliability. The Water Enterprise Fund also receives a lesser amount of revenue from interest and miscellaneous revenue.

Under long-term drought conditions, it may be necessary to institute temporary increases to rates to cover increased operating expenses. The City is developing a rate study anticipated to be complete in Fall 2026 and may consider adopting a surcharge or flat rate increase over a specific time period to cover increased operating expenses while under a water shortage .This measure would allow the City to implement various levels of rate increases after the City Council, by resolution, has declared a threatened shortage of funds due to a water shortage or other emergency.

Conditions of drought and the implementation of water restrictions would also impact expenditures.

Reduced availability of groundwater would produce higher energy bills. The difference in groundwater elevation would lengthen the pumping time required to produce the same amount of groundwater.

Enforcement of the WSCP is presumed to be covered by enhanced revenues from application of excess use charges and penalties.
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18 8 Monitoring and Reporting
CWC Section 10632(a)(9) describes the reporting requirements and monitoring procedures to implement the WSCP and track and evaluate the response actions effectives. As described in Section 2.2, the City intends to track its supplies and project demands on an annual basis and if supply conditions described in Table 1 are projected, the City will enact their WSCP. Monitoring demands is essential to ensure the WSCP response actions are adequately meeting reductions and decreasing the supply/demand gap. This will help to analyze the effectiveness of the WSCP or identify the need to activate additional response actions.

The City’s current water and wastewater rates are supported by a Water and Sewer Rate Study completed in 2021, which served as the basis for City Council adoption of rates for fiscal years 2021-2022 through 2025-2026 (City Council Resolution 5751). All City water service connections are charged monthly for the volume of water used. The City’s current water rate schedule provides a three-tiered rate structure for domestic users in Teir 1, irrigation/outdoor water use in Tier 2, and additional water use in Tier 3 for higher unit cost assessments. It is noted that multi-family, commercial, public, and school customers are assessed at a uniform rate. Each account type is charged at a specific rate for every hundred (centum)cubic feet (CCF)1 of water used monthly. The tiered structure communicates the value of water, provides financial incentives to conserve water, and reimburses the utility for the cost of maintaining water facilities and infrastructure with sufficient capacity to meet the needs of the City.

Separate from the WSCP Annual Assessment requirements, the City is also subject to SWRCB drought and conservation reporting under Order No. DDW_HQ_2024_001. As a community public water system and urban retail water supplier, the City submits applicable drought and conservation reports through the SAFER Clearinghouse in accordance with SWRCB instructions. The City will continue to report this information and integrate this process into its WSCP Annual Assessment process. 1 CCF (hundred cubic feet) is a standard unit used in water use reporting and billing. One CCF equals approximately 748 gallons. 636
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Public Review Draft 19
9 Refinement Procedures
The WSCP will be periodically re-evaluated to ensure that the City’s shortage risk tolerance is adequate and that the shortage response actions are effective and up to date based on lessons learned from implementing the WSCP. The WSCP will be revised and updated every five years during the UWMP update cycle to incorporate updated and new information. However, if revisions to the WSCP are warranted before the UWMP is updated, the WSCP can be updated outside of the UWMP update cycle. The City’s Annual Assessment process is a natural and logical opportunity for the City to consider the functionality of the existing WSCP and can prepare refinements if changes are found to be needed. 637
City of Soledad
2025 Water Shortage Contingency Plan
20 10 Special Water Feature Distinction
CWC Section 10632(b) requires the City to analyze and define water features in the WSCP that are artificially supplied with water, including ponds, fountains, etc. separately from pools and spas as defined by subdivision (a) of Section 115921 of the Health and Safety Code. Pools and spas must use potable water whereas ponds, fountains and other water features may be able to use recycled (recirculated) water. As referenced in this section as it pertains to the City’s Mandatory Water Conservation, recycled water means recirculated water. The City is anticipating updating its ordinance in the future to distinguish between the use of recycled water for special water feature distinction and recycled water supplies.

This WSCP differentiates special water features following the City’s Municipal Code Chapter 13.09 Mandatory Water Conservation distinctions. In summary, the City has identified two types of water features:
• Decorative Water Features exist for decorative or aesthetic purposes and are not intended for recreational uses, such as pools or spas. More specifically, regarding fountains, no person shall use water to operate or maintain levels in decorative fountains, unless such water is recycled in the fountain.
• Recreational Water Features are intended for recreation, such as a swimming pool or spa. They may be residentially or municipally/commercially owned and operated. Regarding swimming pools and spas, no person shall empty and refill a swimming pool or spa except to prevent or repair structural damage or to comply with public health regulations.

Additionally, the City will consider artificial man-made lakes as new developments are approved. Artificial man-made lakes are large bodies of water artificially created for a variety of intended purposes, that may include recreation, habitat, aesthetics, and community amenities that require supplemental water fill from City water services.

Water shortage response actions identified in this WSCP primarily target restrictions or prohibitions to filling water features that use drinking water. Water features that use recycled water are generally exempted from fill restrictions, unless the City declares otherwise, based on an assessment of the supply and availability of recycled water. Note that the City does not refilling of a swimming pool or spa except to prevent or repair structural damage or to comply with public health regulations. 638
Plan Adoption, Submittal, and Availability
Public Review Draft 21
11 Plan Adoption, Submittal, and Availability
This 2025 WSCP will be presented for adoption by the City Council at the June 17, 2026 public meeting.

Notifications were sent to those identified in Table 5. To comply with the notice to the public, the City published notices in the Salinas Valley Tribune at least two weeks in advance with 5 days between publications. Copies of the 60-day notices and public hearing newspaper notices are provided in Attachment B. The WSCP was also made available prior to the public hearing.

The WSCP will be considered for adoption on June 17, 2026, by the City Council by Resolution, which will be included in Attachment C in the Final UWMP. The WSCP was made available to all staff, customers, and any affected cities, counties, or other members of the public at the City’s office and online within 30 days of the adoption date.

The WSCP will be submitted to DWR via the Water Use Efficiency Data Portal at the same time as the 2025 UWMP, but no later than July 1, 2026. A hard copy of the 2025 UWMP and WSCP will be submitted to the California State Library within 30 days of adoption. Electronic and/or hard copies were provided to all cities and counties within City’s service area within 30 days of adoption.

Based on DWR’s review of the WSCP, the City will make any amendments to its adopted WSCP, as required and directed by DWR. If the City revises its WSCP, then an electronic copy of the revised WSCP will be submitted to DWR within 30 days of its adoption.

Table 5 Notification to Cities and Counties
DWR Submittal Table 10-1 Retail: Notification to Cities and Counties Water Code Section 10621(b) and 10642
Name 60 Day Notice Notice of Public Hearing
County of Monterey Yes Yes
City of Gonzales Yes Yes
City of Greenfield Yes Yes
Monterey County Water Resources Agency Yes Yes
Monterey County Water Awareness Committee Yes Yes
Salinas Valley Basin Groundwater Sustainability Agency Yes Yes Greater Monterey County IRWM Program Yes Yes
Soledad Unified School District Yes Yes
California Department of Corrections and Rehabilitation Yes Yes Estancia Estates Winery Yes Yes
Golden State Vinters Yes Yes
Dole Fresh Vegetables Yes Yes
Camphora Apartments Yes Yes
639
City of Soledad
2025 Water Shortage Contingency Plan
22 12 References
City of Soledad. 2021a. Water and Sewer Rate Study.
_______.2021b. Emergency Response Plan.
______.2025. Master Fee Schedule Fiscal Year 2025-2026. Retrieved from:
https://www.cityofsoledad.com/download/master-feeschedule/?ind=24855&filename=Approved-Master-Fee-Schedule-FY-2025-

26.pdf&wpdmdl=6885&refresh=6a188813c02751779992595
______.2026. 2025 Urban Water Management Plan (Public Review Draft).

Monterey County. 2022. Multi-Jurisdictional Hazard Mitigation Plan. Retrieved from:
https://www.countyofmonterey.gov/home/showpublisheddocument/114305/637961624630700 000
Department of Water Resources. 2026. Final 2025 Urban Water Management Plan Guidebook. Retrieved from: https://water.ca.gov/-/media/DWR-Website/Web-Pages/Programs/Water-Use-AndEfficiency/Urban-Water-Use-Efficiency/Urban-Water-Management-Plans/Final-2025-UWMPGuidebook/Final-2025-UWMP-Guidebook-Accessible.pdf 640
Attachment A
City of Soledad Municipal Code Section 13.09 Mandatory Water Conservation Regulations
641
Title 13 - PUBLIC SERVICES
Division II. - Water
Chapter 13.09 MANDATORY WATER CONSERVATION REGULATIONS
Soledad, California, Municipal Code Created: 2025-09-26 12:12:17 [EST] (Supp. No. 10)

Page 1 of 6 ends

Chapter 13.09 MANDATORY WATER CONSERVATION REGULATIONS
Sections:

13.09.010 Purpose.

13.09.020 Definitions.

A. Agency. "Agency" means the Monterey County Water Resources Agency.

D. "Change of use" means a change from one use of a structure to another use that is identified as a different use under the zoning ordinance, Title 17, of the Municipal Code of the city of Soledad.

E. "City manager" means the city manager of the city of Soledad.

F. "New construction" means a completely new structure, a new addition to a previously existing structure or the portion of a previously existing structure that is newly remodeled or renovated.

H. "Person" means any individual person and any firm, partnership, corporation, business entity, association, district, agency, city, county and any other entity or organization.

I. "Public works director" means the superintendent of public works of the city of Soledad.

K. "Superintendent of utilities" means the superintendent of utilities of the city of Soledad.

L. "Water recirculating system" means a system approved by the city that recirculates water between hot water and cold water lines, so that substantially all the cold water standing in the pipes will be returned to 642
Created: 2025-09-26 12:12:17 [EST]
(Supp. No. 10)

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13.09.030 Enforcement.

13.09.040 Mandatory restrictions on water waste.

C. Cleaning of Structures. No person shall use potable water through a hose to clean the exterior of any building or structure unless such hose is equipped with a shutoff nozzle.

F. Swimming Pools and Spas. No person shall empty and refill a swimming pool or spa except to prevent or repair structural damage or to comply with public health regulations.

G. Fountains. No person shall use water to operate or maintain levels in decorative fountains, unless such water is recycled in the fountain.

I. Public and Quasi-Public Entities. All public and quasi-public entities shall display, in visible locations in all rostrums, kitchens and dining areas, placards or decals approved by the agency, promoting public awareness of the need for water conservation and/or advising the public that waste of water is prohibited. "Quasi643 Created: 2025-09-26 12:12:17 [EST]
(Supp. No. 10)

Page 3 of 6 ends

1. Use of mechanical automatic car wash facilities utilizing water recycling equipment;

2. Use of a hose that operates on a timer for limited time periods and shuts off automatically at the expiration of the time period;

3. Use of a hose equipped with an automatic shutoff nozzle;

4. Use of bucket and hand washing.

K. Construction.

2. All hoses used in connection with any construction activity shall be equipped with a shutoff nozzle.

When an automatic shutoff nozzle can be purchased or otherwise obtained for the size or type of hose in use, the nozzle shall be an automatic shutoff nozzle.

N. New Construction.

1. In all new construction, all toilets shall be ultra low-flow toilets with a maximum tank size or flush capacity of one and one-half gallons.

2. All shower heads shall have a maximum flow capacity of two and one-half gallons per minute.

3. All hot water faucets that have more than ten feet of pipe between the faucet and the hot water heater serving such faucet shall be equipped with a water recirculating system.

P. Retrofitting Upon Change of Ownership or Use.
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(Supp. No. 10)

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1. Address excessive use by any person(s); and

2. Provide sufficient revenue for the city to meet obligations and provide water services consistent with its policies.

S. Use of Water to Irrigate. No person shall use water to irrigate lawns, landscape or other turf areas which is not in accordance with local city and county ordinances. (Ord. 534 § 2 (part), 1993)

13.09.050 Warnings.

13.09.060 Penalties.

A. Each violation of this chapter is an infraction.

B. Any violation that occurs or continues from one day to the next shall be deemed a separate violation, for each day during which such violation occurs or continues to occur.

13.09.070 Nuisance.

A. Any violation of this chapter is declared to be a public nuisance.

B. In accordance with the provisions of Chapter 9.04 of the Soledad Municipal Code, the city may, upon order of the city council, abate an identified public nuisance and/or bring civil action to enjoin or abate the nuisance 645
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(Supp. No. 10)

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and make the costs of nuisance abatement a special assessment against the parcel of land on which the nuisance is located or originates.

13.09.080 Variances.

A. Any person may, at any time, apply in writing for a variance from strict application of this chapter. The application for the variance shall be filed with the city of Soledad.

B. The city manager may grant a temporary variance of up to one year to come into compliance with the terms of this chapter upon making both of the following findings:

1. The strict application of the chapter would create an undue hardship, or an emergency condition exists which requires that the variance be granted; and

2. Granting the variance will not cause a significant adverse effect on the water supply or on service to other water consumers.

13.09.090 Revenues received from enforcement.

13.09.100 Severability.

If any section, subsection, sentence, clause or phrase of this chapter is for any reason held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portions of this chapter. The city council declares that it would have passed this chapter and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any other part thereof be unconstitutional or invalid. (Ord. 534 § 2 (part), 1993)
646
Attachment B
Public Notices
Newspaper notices will be available in the Final document version. 647
648
649
650
651
652
653
654
655
656
657
658
659
660
Attachment C
Adoption Resolution
This will be available in the Final document version.
661
Appendix E
Adopted Resolutions
This will be available in the Final document version .
662
Appendix F
2025 DWR Standardized Tables
This will be available in the Final document version .
663
SUBJECT: Presentation and Acceptance of The City of Soledad’s 2022 State Community Development Block Grant (CDBG) Award No. 22-CDBGED-30043 Business Assistance Loan Program Closeout Report to the California Department of Housing and Community Development (HCD) TO: Honorable Mayor Velazquez and City Council
FROM: Beatriz Trujillo, Community and Economic Development Director and Tencia C. Vargas, Economic Development Coordinator
MEETING DATE: June 17, 2026

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 1.

Recommendation
It is recommended that the City Council of the City of Soledad receive the presentation regarding the Closeout Report for the City of Soledad’s 2022 State Community Development Block Grant (CDBG) Award No, 22-CDBG-ED-30043 Business Assistance Loan Program and accept the Closeout Report for submittal to the California Department of Housing and Community Development (HCD).

Executive Summary
The City applied for and was awarded a total of $750,000 in funding through the 2022 State Community Development Block Grant (CDBG) Program. Grant funds were utilized to provide business assistance loans to businesses seeking to start or expand operations while creating and retaining local employment opportunities under Grant No. 22-CDBG-ED-30043. Through this program, the City assisted five (5) businesses, resulting in the creation of eighteen (18) new full-time jobs.

As the grant funds have now been fully expended, the City is required to conduct a public notice and hearing to receive public comments regarding the program accomplishments and submit a Closeout Report to the California Department of Housing and Community Development (HCD) for review and approval.

Background
On April 19, 2022, the Department of Housing and Community Development released the 2022 Community Development Block Grant (CDBG) Program Notice of Funding Availability (NOFA).

On June 15, 2022, the City Council of the City of Soledad adopted Resolution No. 5831, authorizing the 664
city to apply for funding under the 2022 State Community Development Block Grant (CDBG) Program.

On June 27, 2023, the City of Soledad was awarded the CDBG Economic Development Grant No. 22- CDBG-ED-30043 in the amount of $750,000. The funds awarded were allocated to the following business assistance activities:
$697,500.00 in Business Assistance Loans and Activity Delivery $52,500.00 in General Administration
The grant term was established for three (3) years and is set to expire on June 30,2026.

The primary purpose of the grant award was to support entrepreneurs seeking to start or expand their businesses by providing low-interest business assistance loans that would facilitate the creation and retention of jobs. Under the program guidelines, each $35,000 loaned was required to create or retain one (1) full-time job.

Review & Analysis
Following the COVID-19 pandemic, many local small businesses experienced significant economic hardship and ongoing financial instability. While the City had previously provided assistance through federal funding sources such as the American Rescue Plan Act (ARPA) and Community Development Block Grant (CDBG) programs in the form of façade improvement grants and business assistance loans, the challenging economic climate continued to create barriers for businesses attempting to recover, expand operations, and achieve long-term sustainability. Additionally, aspiring entrepreneurs faced limited access to capital and financial resources necessary to establish new businesses within the community.

Recognizing the continued need for support and to strengthen the local business community, the City pursued additional funding opportunities through the State Community Development Block Grant (CDBG) Program. On June 15, 2022, the City Council of the City of Soledad authorized staff to apply for funding under the 2022 CDBG Grant Notice of Funding Availability (NOFA). Subsequently, on June 27, 2023, the City was awarded $750,000 in CDBG Grant Funding to help fund the Small Business Assistance Loan Program.

The Small Business Assistance Loan Program was established to provide financial assistance to businesses seeking to expand operations, retain and create jobs, and support entrepreneurs interested in establishing new businesses within the City of Soledad. The loan program is structured to support three eligible business assistance activities, including the acquisition of machinery and equipment, inventory and merchandise purchases, and working capital.

The following is a list of businesses that received funding through the grant program:

1. Alcala Ace Hardware, Inc., was approved for a business assistance loan in the amount of $200,000. The business established operations by taking over the former Soledad Hardware Store located at 900 Front Street. Loan funds were utilized for the purchase of equipment, machinery, and inventory necessary to support the start-up of the business. As a result, the business successfully opened operations and created seven (7) new full-time positions.

2. Powerhouse Brew was approved for a business assistance loan in the amount of $35,000. The business established itself as a new mobile coffee business from a converted trailer. Loan funds were utilized to purchase and convert a camper in a mobile coffee bar, as well as to acquire 665
equipment, inventory and working capital. As a result, the business will create one (1) new fulltime position.

3. Serreza Beauty, LLC was approved for a business assistance loan in the amount of $35,000 which was later decreased to $25,000. The business was an established salon that rebranded and relocated from Monterey Street to Front Street. The loan funds were utilized for the purchase of salon equipment, machinery, inventory and working capital. As a result, the business created one (1) new full-time position.

4. Veloz Café, Inc. was approved for a business loan in the amount of $80,000. The business established itself as a mobile coffee business from a customized coffee truck. Loan funds were utilized to purchase a customized coffee truck, equipment, machinery, inventory and working capital. This will result in the business creating three (3) full-time positions in the next 12 to 18 months.

5. Leyva’s Towing, Inc. was approved for a business loan in the amount of $200,000. The business is an existing long-standing business that expanded the services it provides to the community.

Loan funds were utilized to purchase a tow-truck, machinery, equipment and working capital. As a result, the business is anticipated to create six (6) full-time positions in the next 12 to 18 months.

A total of $585,000 of grant funds was allocated for business loans, $112,500 was allocated for Activity Delivery and $52,500 was allocated for General Administration of the grant program.

As these business loans are repaid, monies received will be categorized as program income and can be used as a revolving loan fund for other Soledad businesses.

Grant funds for CDBG Grand No. 22-CDBG-ED-30043 have been fully expended and upon acceptance by the Council of this report, the Final State Closeout Report will be submitted along with a Closeout Letter, to HCD, Community Development Block Grant Division for review and approval.

Financial Considerations
Acceptance of this Close-Out Report and submittal to HCD is a requirement of this grant. This business assistance program has been fully funded through the State Community Development Block Grant Program in the amount of $750,000 and has no financial impact on the General Fund.

Strategic Plan Alignment
The Small Business Assistance Loan Program directly supports and advances objectives under Section

1.1.2, “Provide technical assistance, resources, and engagement opportunities to help retain and grow Soledad businesses”. The Business Assistance Loan program serves as a critical economic development tool by assisting existing businesses with expansion efforts, operational improvements, working capital, and job creation. By providing low-interest financing, the program helps businesses overcome financial barriers that may otherwise prevent growth, expansion, or long-term sustainability.

Alternatives
Receive and accept the Closeout Report of the 2022 State Community Development Block Grant Program Award No. 22-CDBG-ED-30043 - Business Assistance Loan Programs.

Do not accept the Closeout Report and provide alternative direction to staff. This alternative is not recommended, as submission of the Closeout Report is a requirement of the grant agreement and necessary to complete the grant closeout process with the California Department of Housing and Community Development (HCD).
666
Soledad CDBG Closeout Report Presentation
Proof of Publication
Planning/CEQA
The acceptance and submittal of the Closeout Report of the 2022 State Community Development Block Grant Program Award No. 22-CDBG-ED-30043- Business Assistance Loan Program is not considered a “project” for the purpose of CEQA.

Public Notice Requirements
A Public Hearing Notice is required to provide citizens with an opportunity to comment on the City’s performance and accomplishments associated with the 2022 State Community Development Block Grant Program Award No. 22-CDBG-ED-30043 - Business Assistance Loan Programs. In accordance with grant requirements, a Public Hearing Notice in both English and Spanish was published in the Salinas Valley Tribune on May 27, 2026.

Attachment(s):
667
2022 State Community
Development Block Grant
Program
City of Soledad
City Council Meeting – June 17, 2026
Presented by: Tencia C. Vargas

CLOSEOUT
REPORT
668
Program Overview
The picture can't be displayed. Grant Award No. 22-CDBG-ED-30043 (2022 CDBG Funding)
The picture can't be displayed.

Total Grant Award: $750,000
The picture can't be displayed. Purpose: Support business expansion, entrepreneurship, and job creation
669
Grant Funding Allocation
$585,000 –
Business
Assistance Loans
$112,500-
Activity Delivery
(Consultant)
$52,000- General
Administration
(City Staff)
Grant Term:

June 27,2023 to
June 30,2026
670
Program Goals
The picture can't be displayed. Provide low-interest
business assistance
loans
The picture can't be displayed. Support business
start-up and
expansion efforts
The picture can't be displayed. Create and retain
local employment
opportunities
The picture can't be displayed.

Strengthen the local
business community
671
Eligible Loan Activities
The picture can't be displayed.

Purchase of machinery
and equipment
The picture can't be displayed.

Inventory and
merchandise purchases
The picture can't be displayed.

Working capital
assistance
672
Business Assistance Loan
Recipients
• Alcala Ace Hardware, Inc. – $245,000
• Powerhouse Brew – $35,000
• Serreza Beauty, LLC – $25,000
• Veloz Café, Inc. – $80,000
• Leyva’s Towing, Inc. – $200,00
Business Loan Total: $585,00.00
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Program Accomplishments &
Long Term Benefits
Accomplishments:
• Five (5) businesses assisted
• Eighteen (18) new full-time jobs created
• Expansion of local business services
• Support for new and existing businesses
Long Term Benefits
• Loan repayments will become Program Income
• Funds may be reused to support future Soledad businesses • Creates long-term economic development opportunities
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Strategic Plan
Alignment
• Supports Strategic Plan
Goal 1.1.2
• Provides resources and
financial assistance to
businesses
• Encourages business
retention and expansion
• Promotes long-term
economic sustainability
675
Financial Considerations
The picture can't be displayed.

Program
fully funded
through
State CDBG
Grant
The picture can't be displayed.

No impact
to the City’s
General
Fund
The picture can't be displayed.

Closeout
Report
submission
required
per grant
agreement
676
Recommendation
The picture can't be displayed.

Receive presentation regarding the Closeout
Report
The picture can't be displayed.

Accept the Closeout Report
677
Any questions?
THANK YOU!
The picture can't be displayed.
678
679
SUBJECT: Resolution No. 6389, a Resolution of the City Council of the City of Soledad to Receive a Presentation on the Active Transportation Program (ATP) Cycle 8 Grant for the Safe Streets for Soledad Project, and Provide Staff Feedback and Approve the Commitment of Funds for the Grant Application
TO: Honorable Mayor Velazquez and City Council
FROM: Don Wilcox, Public Works Direct, and Alex Ramos, Engineering Project Manager
MEETING DATE: June 17, 2026

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 1.

Recommendation
It is recommended that the City Council of the City of Soledad adopt Resolution No.6389, “To Receive a Presentation on the Active Transportation Program (ATP) Cycle 8 Grant for the Safe Streets for Soledad Project and Provide Staff Feedback and Approve the Commitment of Funds for the Grant Application.”
Executive Summary
The City of Soledad partnered with the Transportation Agency for Monterey County (TAMC) to develop the Safe Streets for Soledad Project for submission under the Active Transportation Program (ATP) Cycle 8 grant funding opportunity. The proposed project includes bicycle and pedestrian safety improvements, roadway enhancements, and community-based education and encouragement programs designed to improve connectivity and create safer routes to schools, parks, transit, employment centers, and other key destinations throughout the community.

Staff is requesting City Council feedback on the proposed project scope and non-infrastructure programming, as well as approval of the Resolution and Commitment of Funds Letter necessary to support submission of the ATP Cycle 8 application. Approval of the Commitment of Funds Letter will leverage approximately $5.45 million in previously secured transportation funding and strengthen the City's competitiveness for an ATP grant request anticipated to range between $30 million and $35 million.

Background
The Active Transportation Program (ATP) was established by the California Legislature in 2013 to 680
encourage increased use of active modes of transportation, improve safety for pedestrians and bicyclists, enhance public health, reduce greenhouse gas emissions, and increase mobility throughout California. Administered by the California Transportation Commission (CTC) and Caltrans, the ATP provides competitive grant funding for infrastructure and non-infrastructure projects that improve walking and bicycling conditions, with an emphasis on safety, connectivity, and access within disadvantaged communities.

In December 2023, the City partnered with the Transportation Agency for Monterey County (TAMC) to pursue funding through the Active Transportation Program (ATP) Cycle 7 Call for Projects. Over the following several months, the project team conducted community outreach, developed concept designs, evaluated transportation needs, and prepared grant application materials. To maximize funding opportunities, the City submitted two applications in June 2024, consisting of a full project application totaling approximately $37.9 million and a phased project application totaling approximately $29.7 million. While both applications scored competitively during the evaluation process, neither application was selected for funding due to the highly competitive nature of the program and limited funding availability.

Following the conclusion of ATP Cycle 7, the California Transportation Commission released the ATP Cycle 8 Call for Projects. Staff once again coordinated with TAMC to evaluate funding opportunities and prepare a new application focused on advancing transportation safety, connectivity, and active transportation improvements throughout the City. The proposed ATP Cycle 8 application builds on previous planning efforts, community outreach, and project development activities completed during the prior application cycle and seeks funding for transportation improvements that support safer and more accessible travel throughout the community.

Review & Analysis
This citywide project will focus on five key safe routes to school corridors and several important connector streets identified through the Salinas Valley Safe Routes to Schools planning process. The street improvements include over five miles of bicycle and pedestrian improvements creating lowstress connections to all eight of the K-12 public schools, higher education, transit, parks, jobs, shopping, healthcare, and community amenities.

The non-infrastructure component of this project includes targeted educational and encouragement programs designed to serve the disadvantaged community and specifically address safety issues that cannot be resolved with infrastructure improvements alone. Bicycle and pedestrian safety programs will be delivered to students at all public elementary schools and middle school in the city. Programs will include traffic safety education, bike rodeos, bike repair workshops, and walk-to-school days, all conducted in both English and Spanish to address linguistic isolation. High school students will have the opportunity to participate in bike repair workshops and a Crime Prevention Through Environmental Design (CPTED) program for high school students, focusing on strategies to reduce crime and promote safe walking and biking environments. Seniors will receive pedestrian safety and encouragement programming tailored to their needs. The project will empower the community to organize and implement open street events and a drive safe campaign focused on correcting unsafe driving behaviors.

Proposed infrastructure improvements may include:

A road diet and Class IV bike facility on Gabilan Drive Road diet and Class IV bike facility on West Street
Class IV bike facility and rapid flashing beacons along Orchard Lane Class IV bike facility on Front Street
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Class IV bike facility on Nestles Lane & Los Coches Rd
Buffered bike lanes on Monterey Street
Buffered bike lanes along 3rd Street
Six roundabouts
Bike boxes
Americans with Disabilities Act (ADA) compliant ramps
Pedestrian lighting
High-visibility "High-Intensity Activated crossWalK" (HAWK) signals The Active Transportation Program is the most appropriate funding source to advance the Safe Streets for Soledad project because it prioritizes improving safety for people walking and bicycling, increasing access for disadvantaged and underserved communities, and demonstrate consistency with adopted plans and readiness for delivery. Staff believes this project is well-positioned to compete in the upcoming Active Transportation Program grant funding cycle due to its strong planning foundation, documented safety needs, regional significance, and coordination with partner agencies. Staff requests feedback on the proposed concept designs and non-infrastructure programming for the proposed project. Additionally, staff recommends that City Council approve the attached Commitment of Funds Letter to leverage funds for the grant. Points are awarded for leveraging funds, giving the project an advantage over others across the State. The grant application is due on June 22, 2026.

Financial Considerations
As currently proposed, the City of Soledad intends to request approximately $30 million to $35 million in Active Transportation Program (ATP) funding to implement the Safe Streets for Soledad Project.

Staff and project partners continue to refine project scopes, cost estimates, and funding strategies in advance of the final application submittal deadline.

Approval of this item does not authorize the expenditure of additional City funds, appropriate General Fund resources, or commit the City to immediate project implementation. Rather, the proposed Commitment of Funds Letter leverages approximately $5.45 million in previously secured local, regional, state, and federal transportation funding associated with existing transportation projects, including the West Street Road Diet and Complete Streets Project, Pedestrian Safety Improvements Project (HSIP Cycle 11), Safe Routes to School Participatory Budgeting Projects, and the Citywide Slurry Seal Project. These projects are either currently underway, funded, or planned and are being used to demonstrate the City's ongoing investment in transportation safety and active transportation improvements.

Strategic Plan Alignment
This project is consistent with Objective 5.1.1 – Promote Active Transportation and Pedestrian Safety.

Specifically, the Strategic Plan identifies collaborating with TAMC to resubmit the Safe Routes to School Projects (now known as the Safe Streets for Soledad Project) for Active Transportation Program (ATP) implementation funding through the State and other funding sources.

Alternatives
Adopt the proposed Resolution; or
Do not adopt the proposed Resolution. This is not recommended as it may affect the City’s ability to apply for ATP funding to implement safety, accessibility, and comfort improvements for pedestrians and cyclists.
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Resolution No. 6389
Exhibit A - Draft Letter of Committment
Presentation
Planning/CEQA
This action is not considered a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b)(5), as it involves organizational and administrative activities that will not result in direct or indirect physical changes to the environment. Any future discretionary projects resulting from this action will be evaluated separately for CEQA applicability.

Public Notice Requirements
None required.

Attachment(s):
683
RESOLUTION NO. 6389

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLEDAD TO

RECEIVE A PRESENTATION ON THE ACTIVE TRANSPORTATION PROGRAM (ATP) CYCLE 8 GRANT FOR THE SAFE STREETS FOR SOLEDAD PROJECT AND

PROVIDE STAFF FEEDBACK AND APPROVE THE COMMITMENT OF FUNDS FOR

THE GRANT APPLICATION
WHEREAS, the Active Transportation Program (ATP) was established by the California Legislature in 2013 to encourage increased use of active modes of transportation, improve safety for pedestrians and bicyclists, enhance public health, reduce greenhouse gas emissions, and increase mobility throughout California; and
WHEREAS, the California Transportation Commission (CTC) and California Department of Transportation (Caltrans) administer the ATP and periodically solicit applications for competitive grant funding through the ATP Call for Projects; and WHEREAS, in December 2023, the City partnered with the Transportation Agency for Monterey County (TAMC) to develop and submit two ATP Cycle 7 applications focused on citywide active transportation improvements and safe routes to school infrastructure; and WHEREAS, although the ATP Cycle 7 applications scored competitively, neither application was selected for funding due to limited funding availability and the highly competitive nature of the program; and
WHEREAS, the California Transportation Commission has subsequently released the ATP Cycle 8 Call for Projects, providing the City with an opportunity to seek funding for transportation safety and active transportation improvements throughout the community; and

WHEREAS, the proposed Safe Streets for Soledad Project includes infrastructure and non-infrastructure improvements intended to improve pedestrian and bicycle safety, increase connectivity, provide safer routes to schools, and enhance access to transit, parks, employment centers, healthcare facilities, shopping destinations, and other community amenities; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate local streets through pavement preservation improvements associated with the Fiscal Year 24/25 Slurry Seal Project (2026 Slurry Seal Project), improve deficient pavement striping and markings, enhance roadway visibility, and address roadway areas impacted by recent utility and trench restoration activities throughout the community; and WHEREAS, proposed project improvements may include roadway reconfigurations, Class IV bicycle facilities, buffered bicycle lanes, pedestrian crossing enhancements, roundabouts, bicycle boxes, Americans with Disabilities Act (ADA) improvements, pedestrian lighting, High-Intensity Activated CrossWalK (HAWK) signals, and community-based education and encouragement programs; and
WHEREAS, the proposed project would provide low-stress bicycle and pedestrian 684
connections serving all eight K-12 public schools within the City and support transportation safety goals identified through the Salinas Valley Safe Routes to School planning process; and WHEREAS, the City intends to request approximately $30 million to $35 million in ATP funding to implement the Safe Streets for Soledad Project; and WHEREAS, the City has identified approximately $5.45 million in previously secured local, regional, state, and federal transportation funding associated with existing transportation projects, including the West Street Road Diet and Complete Streets Project, Pedestrian Safety Improvements Project (HSIP Cycle 11), Safe Routes to School Participatory Budgeting Projects, and the Citywide Slurry Seal Project, which may be leveraged to strengthen the ATP application; and
WHEREAS, approval of the Commitment of Funds Letter does not authorize the expenditure of additional City funds, require an additional unbudgeted General Fund contribution, or commit the City to immediate project implementation; and WHEREAS, this action is not considered a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b)(5), as it involves organizational and administrative activities that will not result in direct or indirect physical changes to the environment.

NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Soledad that the Active Transportation Program (ATP) Cycle 8 grant application for the Safe Streets for Soledad Project, the Commitment of Funds Letter attached hereto as “Exhibit A” and by reference incorporated herein, are hereby approved, and the City Manager is hereby authorized and directed to execute all documents necessary to submit the ATP Cycle 8 grant application on behalf of the City of Soledad.

PASSED AND ADOPTED by the City Council of the City of Soledad at a regular meeting duly held on the 17
th day of June 2026, by the following vote:

AYES, and in favor thereof, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ANNA M. VELAZQUEZ, Mayor
ATTEST:

MEGAN HUNTER, City Clerk
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248 Main Street, P.O. Box 156, Soledad, CA 93960 • Phone (831) 223-5000 • Fax: (831) 678-3965 d
June 1, 2026
ATP Cycle 8 Evaluation Committee
California Department of Transportation
1120 N Street
Sacramento, CA 95814
RE: Safe Streets for Soledad Project Commitment of Funds ATP Cycle 8 Evaluation Committee:

This letter is intended to memorialize a commitment by the City of Soledad (City) to delivering the Soledad Safe Streets for Soledad Project (Project) if Active Transportation Program (ATP) Cycle 8 grant funds are awarded. The Project was developed through robust community engagement process and will provide transformative, citywide safety improvements that enhance bicycle and pedestrian connectivity throughout the community.

The City has secured transportation funding in the amount of $5,446,627 from a number of sources including the Transportation Safety and Investment Plan (Measure X), Regional Surfaces Transportation Program (RSTP), and Highway Safety Improvement Program (HSIP), which will be leveraged to support several transportation safety projects including the West Street Road Diet and Complete Streets Project, Pedestrian Safety Improvements Projects (HSIP Cycle 11), Safe Routes to School Steering Committee Participatory Budgeting Projects, and Citywide Slurry Seal Project. These improvements are all within the citywide Safe Streets for Soledad project.

Additionally, the City has submitted an application under the Fiscal Year 2026 Safe Streets and Roads for All (SS4A) Program seeking approximately $4.7 million in federal implementation funding for transportation safety improvements throughout the community. Approximately $1,742,123 is proposed for projects located within or immediately adjacent to the Safe Streets for Soledad Project limits. If awarded, these improvements would further complement the proposed Project by enhancing pedestrian and bicycle safety, improving connectivity, and expanding the City's network of active transportation facilities. The City's commitment to delivering the Safe Streets for Soledad Project is not dependent on the award of SS4A funding. However, the proposed SS4A improvements demonstrate the City's continued investment in creating a safer, more connected transportation network within and adjacent to the Project area.

The Transportation Agency for Monterey County has also agreed to provide up to $400,000 of Regional Surface Transportation Program funding to the Safe Streets for Soledad project if awarded the Active Transportation Program Grant.

The City is currently advancing several transportation and safety projects throughout the community and has demonstrated its ability to successfully deliver complex, grant-funded infrastructure improvements. If awarded ATP grant funds, the City is committed to delivering the Project and is confident it possesses the financial resources necessary to successfully complete the proposed improvements.

In 2016, Monterey County voters approved the Measure X sales tax measure, where 3/8% of sales tax revenues were directed to support local roadway safety and maintenance projects. Additionally, the City also received transportation funds from the Gas Tax, Motor Vehicle Fuel Tax, and SB 1 Local Roads and Streets Funds. All these funds may be further used to support the Project funding. 686
248 Main Street, P.O. Box 156, Soledad, CA 93960 • Phone (831) 223-5000 • Fax: (831) 678-3965 If you have any questions, I may be reached via telephone at 831-223-5124 or via email at [email protected].

Sincerely,
Donald T. Wilcox, P.E.

Public Works Director / City Engineer
Attachments:

1. West Street Road Diet and Complete Streets Project, Resolution No. xx Approving a Contract for Construction

2. Pedestrian Safety Improvements Project (HSIP Cycle 11), Email Award & Project List

3. Safe Routes to School Steering Committee Participatory Budgeting Project, Email Award & Project List

4. Citywide Slurry Seal Project, SB1 Submittal Project List & Resolution No. xx Approving Project List

5. Safe Streets and Roads for All Application, Narrative and Project Map

6. Transportation Agency for Monterey County Commitment of Regional Surface Transportation Program funds.
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Calles seguras para la reunión
de Soledad/ Safe Streets for Soledad
Meeting
Soledad City Council
June 17, 2026
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Recommendations

1. REVIEW and provide feedback on the proposed Cycle
8 Active Transportation Program grant project: Safe
Streets for Soledad.

2. APPROVE the Commitment of Funds for the grant.
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Solicitud de Beca de Transporte Activo / Active
Transportation Grant Application
Alcance
Comunitario /
Community
Outreach
April – May
2026
Entregar
Solicitud /
Submit
Application
June 2026
Adjudicación
de la beca /
Grant Award
December 2026
Asignación /
Allocation
Aug 2027
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Participación de la comunidad / Community Engagement
• Presupuesto Participativo
• Los 6 corredores más
preocupados:
• Gabilan Dr
• Metz Rd
• Orchard Ln
• West St
• Main St
• Market St
6/4/2026 4 691
Resumen del Proyecto /
Project Overview • Gabilan Dr • Orchard Ln / 3rd St • West St • Monterey St • Front St • Nestles Rd • Los Coches Rd 692
West Street
693
Gabilan Drive
694
Orchard Lane
695
Orchard Lane
696
Orchard Ln x Metz Rd
697
3 rd St
698
Palm Ave
699
Monterey St
700
Front St (Oak St – 4
th St)
701
4th St (Front St – Nestles Rd)
702
Nestles Rd (4th St – Los Coches Rd)
703
Programas de
Transporte Activo
Active Transportation
Programs
704
Caminar y rodar a
la escuela
Educación sobre
seguridad vial
Autobús escolar a
pie
Entrenamiento de
guardia de cruce
Programas de
Rutas Seguras a
la Escuela
Safe Routes
to School
Programs
705
Jardín de tráfico / Traffic Garden
706

CPTED EJEMPLOS
JARDÍN COMUNITARIO ASIENTOS AL AIRE LIBRE

ARTE COMUNITARIO
CABINA TELEFÓNICA

REUTILIZADA
18 707
Ciclovia Soledad
708
Programación de caminatas para personas mayores /
Senior Walking Programming
709
Paseos comunitarios /Community Walks
710
Arte en la Banqueta / Sidewalk Art
711
¡Muchas gracias! / Thank you!
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SUBJECT: Resolution No. 6390, A Resolution of the City Council of the City of Soledad Authorizing the City Manager to Execute an Agreement with the Coalition of Homeless Services Providers for HHAP-5 Youth SetAside Funding in an Amount Not to Exceed $181,825.17 TO: Honorable Mayor Velazquez and City Council
FROM: Beatriz Trujillo, Community and Economic Development Director and Kimberly Herrera, Management Analyst
MEETING DATE: June 17, 2026

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 2.

Recommendation
It is recommended that the City Council adopt Resolution No.6390 " Authorizing the City Manager to Execute an Agreement with the Coalition of Homeless Services Providers for HHAP-5 Youth SetAside Funding in an Amount Not to Exceed $181,825.17" to provide continued support services for youth experiencing homelessness.

Executive Summary
The Monterey and San Benito Counties Homelessness Leadership Council has awarded the City of Soledad $181,825.17 in Homeless Housing, Assistance and Prevention Program Round 5 (HHAP-5) Youth Set-Aside funding to support transition-aged youth (TAY), ages 18 to 24, experiencing homelessness. The proposed agreement with the Coalition of Homeless Services Providers (CHSP) will allow the City to expand youth-focused services, including street outreach, housing navigation, rapid rehousing assistance, and supportive services.

The funding builds upon the City's existing investments in youth homelessness programs, including the implementation of the Youth Homelessness Demonstration Program (YHDP), and advances the City's long-term vision to establish a comprehensive TAY Campus model that leverages multiple funding sources to provide coordinated housing and supportive services throughout South Monterey County.

Background
The Homeless Housing Assistance and Prevention Program (HHAP) is a state-funded grant program administered by the California Department of Housing and Community Development (HCD) and the California Interagency Council on Homelessness (Cal ICH). The program provides resources to local jurisdictions to address homelessness through Housing First strategies and may be used for eligible 713
activities such as street outreach, supportive services, homelessness prevention, and rapid rehousing.

The City of Soledad has demonstrated a longstanding commitment to addressing homelessness through regional collaboration and local program implementation. On October 19, 2022, the City Council adopted the Lead Me Home Five-Year Plan Update and appointed a City Council representative to serve on the Lead Me Home Leadership Council. The City's Mayor currently serves on the Leadership Council, representing South Monterey County in regional discussions regarding homelessness planning, funding priorities, and system coordination.

The Lead Me Home Plan serves as the regional strategic framework for addressing homelessness throughout Monterey and San Benito Counties. Developed by the Leadership Council and coordinated by the Coalition of Homeless Services Providers (CHSP), the Plan identifies youth and young adults experiencing homelessness as a priority population and emphasizes outreach, housing navigation, rapid rehousing, and coordinated supportive services as key strategies to reduce homelessness. Consistent with these regional priorities, on July 2, 2025, the City Council approved a Subrecipient Agreement with Bay Area Community Services (BACS) in an amount not to exceed $1,700,000 for implementation of the Youth Homelessness Demonstration Program (YHDP). Through YHDP, the City established dedicated services for transition-aged youth (TAY) experiencing homelessness using the Gateway Center as a TAY campus.

Recognizing the City's demonstrated capacity to serve youth experiencing homelessness and its commitment to expanding services in South Monterey County, the Leadership Council approved an allocation of $181,825.17 in HHAP-5 Youth Set-Aside funding to the City of Soledad. The funding will allow the City to build upon the foundation established through YHDP and further strengthen the Gateway Center as a regional resource for transition-aged youth.

Review & Analysis
Staff proposes utilizing the HHAP-5 Youth Set-Aside funding for two eligible HHAP activities: Street Outreach and Rapid Rehousing. These activities directly align with both the Lead Me Home regional strategy and the City's ongoing efforts to address youth homelessness through the Gateway Center.

Street Outreach services will focus on identifying, engaging, and supporting unsheltered youth throughout South Monterey County. Staff will provide housing navigation, resource referrals, employment and educational connections, behavioral health referrals, and other supportive services designed to establish trust and connect youth to housing opportunities as quickly as possible.

Rapid Rehousing services will assist eligible youth in obtaining permanent housing through housingfocused case management and financial assistance. Eligible activities may include housing identification, landlord engagement, application fees, security deposits, and rental assistance. Ongoing case management will help participants maintain housing stability and progress toward self-sufficiency.

The City currently employs a Homeless Services Coordinator to provide enrollment, case management, housing navigation, and supportive services through the Gateway Center. The Gateway Center will enhance services to operate as a TAY Campus, a youth-friendly resource hub, that offers access to computers, printing services, basic necessities, referrals, and housing assistance.

Approval of the proposed agreement will allow the City to leverage HHAP-5 resources to continue developing a coordinated system of care for transition-aged youth. By combining multiple funding sources and service models into a single program framework, the City can maximize resources, improve housing outcomes, and advance its long-term vision of creating a comprehensive TAY 714
Resolution No. 6390
Exhibit A
Campus that supports vulnerable youth on their path to permanent housing and self-sufficiency.

Financial Considerations
HHAP-5 funds will be administered by the City's Community and Economic Development Department, in coordination with the Finance and Legal Departments. This internal collaboration will ensure full compliance with HCD and Cal ICH regulations and the efficient disbursement of funds.

Strategic Plan Alignment
Approval of the proposed agreement advances the City's Strategic Plan by expanding housing-focused services and supportive resources for transition-aged youth experiencing homelessness. Specifically, this funding supports:

Goal 2.3.2 – Implement comprehensive homelessness solutions grounded in Housing First and interim-to-permanent housing strategies to achieve functional zero homelessness.

Goal 2.3.1 – Expand permanent housing options for homeless individuals, seniors, farmworkers, large families, single parents, and other vulnerable groups.

The proposed HHAP-5 Youth Set-Aside program will provide outreach, housing navigation, rapid rehousing assistance, and supportive services designed to help youth transition from homelessness to permanent housing. The program also strengthens the City's broader efforts to develop a coordinated continuum of care through the Gateway Center and improve housing outcomes for vulnerable residents throughout South Monterey County.

Alternatives
Adopt the Resolution as presented to facilitate the implementation of this program. (Recommended)
Defer adoption of the required resolution pending additional information. This is not recommended as it will delay program implementation and direct services to youth.

Planning/CEQA
Not a Project. The City of Soledad has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).

Public Notice Requirements
None required.

Attachment(s):
715
RESOLUTION NO. 6390

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLEDAD

AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT
WITH THE COALITION OF HOMELESS SERVICES PROVIDERS FOR HHAP5 YOUTH SET-ASIDE FUNDING IN AN AMOUNT NOT TO EXCEED $181,825.17
WHEREAS, he State of California established the Homeless Housing, Assistance and Prevention Program (HHAP) to provide local jurisdictions with resources to address homelessness through Housing First strategies and housing-focused interventions; and WHEREAS, a portion of HHAP Round 5 (HHAP-5) funding has been designated as Youth Set-Aside funding to support transition-aged youth, ages 18 through 24, experiencing homelessness; and
WHEREAS, on October 19, 2022, the City Council adopted the Lead Me Home FiveYear Plan Update, which serves as the regional strategic framework for addressing homelessness throughout Monterey and San Benito Counties and identifies youth homelessness as a priority area for action; and
WHEREAS, on July 2, 2025, the City Council approved a Subrecipient Agreement with Bay Area Community Services (BACS) in an amount not to exceed $1,700,000 for implementation of the Youth Homelessness Demonstration Program (YHDP), establishing dedicated services for transition-aged youth experiencing homelessness; and WHEREAS, the Monterey and San Benito Counties Homelessness Leadership Council approved an allocation of $181,825.17 in HHAP-5 Youth Set-Aside funding to the City of Soledad in recognition of the City's demonstrated commitment and capacity to provide services to youth experiencing homelessness; and
WHEREAS, the proposed funding will support eligible HHAP activities, including street outreach, housing navigation, rapid rehousing, supportive services, and other housingfocused interventions designed to improve housing stability for transition-aged youth experiencing homelessness; and
WHEREAS, the Agreement between the City of Soledad and the Coalition of Homeless Services Providers, attached hereto as Exhibit A, establishes the terms and conditions governing the administration and use of the HHAP-5 Youth Set-Aside funds; and WHEREAS, approval of the Agreement advances Strategic Plan Goal 2.3.2, to implement comprehensive homelessness solutions grounded in Housing First and interim-topermanent housing strategies to achieve functional zero homelessness, and Strategic Plan Goal

2.3.1, to expand permanent housing options for homeless individuals and other vulnerable populations.
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NOW, THEREFORE,BE IT HEREBY RESOLVED by the City Council of the City of Soledad as follows:

1. The City Council hereby approves the Agreement between the City of Soledad and the Coalition of Homeless Services Providers for HHAP-5 Youth Set-Aside funding in an amount not to exceed One Hundred Eighty-One Thousand Eight Hundred Twenty-Five Dollars and Seventeen Cents ($181,825.17), attached hereto as Exhibit A.

2. The City Manager is hereby authorized and directed to execute the Agreement and any non-substantive documents necessary to implement the Agreement and administer the HHAP-5 Youth Set-Aside Program, subject to approval as to form by the City Attorney.

PASSED AND ADOPTED by the City Council of the City of Soledad at a regular meeting duly held on the 17
th day of June 2026, by the following vote:

AYES, and in favor thereof Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ANNA M. VELAZQUEZ, Mayor
ATTEST:

MEGAN HUNTER, City Clerk
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Soledad City CouncilJune 17, 2026

Soledad City Council
June 17, 2026