Watsonville City Council
June 28, 2022

In Process
OE3 MOU 2022-2025 14
accrued sick leave. Workers compensation disability leave will run concurrently with family leave.

3.5.4 This section provides a benefit summary only. For further information, refer to the City’s Administrative Rule on this subject.

4.0 RETIREMENT

4.1 Retirement Plan
The City shall provide the CalPERS 2% at 55 retirement plan for Unit employees hired before July 1, 2011. The City shall continue in effect the current options including CalPERS Section 20862.8 - Credit for Unused Sick Leave.

4.2 Two Tier Retirement Plan
The City shall provide the CalPERS 2% @ 60 retirement plan for Unit employees hired on or after July 1, 2011 or upon effective date of CalPERS contract amendment including CalPERS Section 20862.8 - Credit for Unused Sick Leave.

Final compensation for employees hired on or after July 1, 2011 will be based on the average of the highest wages earned in any consecutive 3-year period.

4.3 PEPRA Tier Retirement Plan
Pursuant to California Public Employees' Pension Reform Act of 2013 (PEPRA), the City shall provide the following CalPERS retirement plan for employees and non-Classics hired on or after January 1, 2013 or as soon as administratively possible:
(a) 2% at 62 formula
(b) Final compensation based the average of the highest wages earned in any consecutive 3-year period
Pursuant to PEPRA, employees hired on or after January 1, 2013 shall pay at least 50% of normal cost of pension or what is determined by CalPERS to be the employee contribution rate.

5.0 MANAGEMENT RIGHTS
All City rights, under state law and charter, and all City rights which existed prior to the recognition of the Operating Engineers Local Union No. 3 shall remain vested with the City, unless expressly abridged by the M.O.U. These rights include, but are not limited to:
-- the exclusive right to determine the mission of its constituent departments, commissions, boards;
-- set standards and levels of service;
DocuSign Envelope ID: 45B9B79C-55C5-4CC6-9585-489D47D8F941

In Process
OE3 MOU 2022-2025 15
-- determine the procedures and standards of selection for employment and promotions;
-- direct its employees;
-- establish and enforce dress and grooming standards;
-- determine the methods and means to relieve its employees from duty because of lack of work or other lawful reasons;
-- maintain the efficiency of governmental operations;
-- determine the methods, means and numbers and kinds of personnel by which government operations are to be conducted;
-- determine the content and intent of job classifications; -- determine methods of financing;
-- determine style and/or types of City-issued wearing apparel, equipment or technology to be used;
-- determine and/or change the facilities, methods, technology, means, organizational structure and size and composition of the work force and allocate and assign work by which the City operations are to be conducted;
-- determine and change the number of locations, relocations and types of operations, processes and materials to be used in carrying out all City functions including, but not limited to, the right to contract for or subcontract any work or operations of the City;
-- to assign work to and schedule employees in accordance with requirements as determined by the City and to establish and change work schedules and assignments upon reasonable notice;
-- establish and modify productivity and performance programs and standards; -- discharge, suspend, demote, reprimand, withhold salary increases and benefits, or otherwise discipline employees in accordance with applicable law; -- establish employee performance standards including, but not limited to, quality and quantity standards, and to require compliance therewith; -- take all necessary actions to carry out its mission in emergencies; and -- exercise complete control and discretion over its organization and the technology of performing its work.

DocuSign Envelope ID: 45B9B79C-55C5-4CC6-9585-489D47D8F941

In Process
OE3 MOU 2022-2025 16
The exercise by the City through its Council and management representatives of its rights hereunder shall not in any way, directly or indirectly, be subject to the recognized grievance procedure.

The City Manager and Department Heads have and will continue to retain exclusive decision making authority on matters not officially and expressly modified by specific provisions of this M.O.U.

In the exercise of the rights set forth in Section 5.0, the City has the right to make reasonable rules and regulations.

6.0 PEACEFUL PERFORMANCE
During the life of this Agreement, Unit employees shall not engage in any work stoppages, strikes, slowdowns, or boycott picketing. No lock-out shall be made by the City.

In the event that any employee covered by this Agreement, individually or collectively, violates the provisions of this section, the Union shall make a good faith effort to stop such violations of this section.

7.0 AGENCY SHOP
Represented employees have voted to provide for an agency shop provision. Union employees shall either join the Union or pay a service fee reflecting the cost of representation.

The City and Union agree:
(1) The Union will indemnify and hold the City harmless from any and all liability arising out of the implementation and administration of the Agency Shop provision, should it be implemented.
(2) The Union shall be responsible for enforcing the provisions of this section using appropriate civil procedures. The City is not responsible for disciplining employees for violation of this section.

The Union agrees to adhere to all statutory and judicial requirements, and to maintain an appropriate complaint procedure. The Union shall also establish alternative procedures for employees who are members of bona fide religion, body, or sect which has historically held conscientious objections to joining or financially support any public employee organization, to make alternative charitable contributions in accordance with Government Code Section 3502.5.

8.0 UNION STEWARDS
Operating Engineers Local Union No. 3 may designate up to four (4) employees as Union Stewards. The Union will notify the City Personnel Officer of any changes to the stewards.

Stewards are responsible for assisting members in resolving disputes regarding disciplinary DocuSign Envelope ID: 45B9B79C-55C5-4CC6-9585-489D47D8F941

In Process
OE3 MOU 2022-2025 17
matters and interpretations of the MOU, providing representation during disciplinary matters upon request, maintaining bulletin boards approved for Union notices and notifying members of Union meetings. At no time shall both stewards be released to handle the same matter. Stewards shall attend meetings as authorized by the City that require Union attendance. An additional member of the bargaining unit will be designated to participate in the Health Care Committee, and shall attend all meetings of that Committee.

9.0 MISCELLANEOUS

9.1 Tool Allowance
The City shall provide Vehicle Mechanics with a One Thousand Dollars ($1,000.00) per year tool allowance. Should the City provide Mechanics with City purchased tools, the tool allowance shall cease. The City and 0E3 agree to Meet-and-Confer on the Tool Allowance within sixty days (60) after ratification of this agreement. As part of this Meet-and-Confer, the City agrees to hear concerns regarding Tool Replacement. If no agreement is reached, Section 9.1 shall remain in effect.

9.2 Tool Insurance
The City shall continue to provide tool insurance for Unit personnel employed at the Municipal Service Center for the term of this Agreement.

9.3 Tool Purchase
The City shall allow Vehicle mechanics to purchase required tools through the City at City prices as long as the relationship with Snap-On Tools industrial accounts is continued.

9.4 Certificates
Water Treatment Personnel and Wastewater Treatment Personnel who are required to possess specified certificates by State or Federal requirements will be provided the required training at City expense.

9.5 New Hires - Notification
The City will provide notification to the Union when new employees are hired into the Unit.

9.6 Boot Allowance

9.6.1 Field employees required to wear work boots shall be allowed an annual reimbursement of One Hundred Seventy-Five Dollars ($175.00) per fiscal year towards the purchase of approved safety boots/shoes. Payment shall be made on a reimbursement basis upon proof of purchase. Once purchased, DocuSign Envelope ID: 45B9B79C-55C5-4CC6-9585-489D47D8F941

In Process
OE3 MOU 2022-2025 18
the approved safety boots/shoes must be worn while on the job. Boots/shoes may be worn during regular work hours only (including to and from work).

9.6.2 In those departments/divisions where steel toed work boots are required, the annual reimbursement amount shall be Two Hundred Dollars ($200.00) per fiscal year towards the purchase of the approved steel toed safety boots/shoes.

9.6.3 Solid Waste employees only shall also be eligible to be reimbursed up to $40 one time annually per fiscal year for the resoling of approved safety boots/shoes.

9.6.4 All employees other than Solid Waste employees shall be eligible to be reimbursed up to $30 per fiscal year for one (1) resoling of their approved safety boots/shoes.

9.6.5 Upon request and with approval of the Department Head, employees that receive a boot allowance may receive up to a total of two pairs of boots annually. The Department Head shall not deny a request for a second pair of boots if any reasonable justification is provided for two pair of boots.

9.7 Passengers in City Vehicles
City Vehicles are not intended to provide transportation except for official City purposes. Transporting of passengers other than for City business is restricted to emergency situations. City vehicles as used in this section shall be interpreted as including any City equipment. This is not intended to prevent passengers in the authorized use of passenger vehicles which are permanently assigned on a 24-hour basis.

9.8 Uniform Allowance
The uniform allowance for those required to wear a uniform that is not provided by the City shall be four hundred and seventy five ($475) per year. Police Service Specialists (PSS) and Parking Control Officers the uniform allowance shall be six hundred and seventy five ($675) per year.

9.9 Mileage
The City shall utilize the IRS rate for mileage reimbursement.

9.10 Work Location
When required to report for work at locations other than the MSC, employees will be provided access to appropriate alternate changing, storage, drinking and toilet facilities.

DocuSign Envelope ID: 45B9B79C-55C5-4CC6-9585-489D47D8F941

In Process
OE3 MOU 2022-2025 19

9.11 Deferred Compensation
Members of this Unit may participate in the Deferred Compensation Plan currently in effect.

By the first full pay period after September 1, 2022, the City will match up to $25.00 per pay check of an employee contribution. Under no circumstances, will the City contribute more than $25.00 per pay check for any employee from September 1, 2022 through July 2023. If the employee does not contribute, the City will still automatically contribute $10.00 per pay check for the employee who voluntarily enrolls.

On the first full pay period after July 1, 2023, the City will match up to $50.00 per pay check of an employee contribution. Under no circumstances, will the City contribute more than $50.00 per pay check for any employee. If the employee does not contribute, the City will still automatically contribute $25.00 per pay check for the employee who voluntarily enrolls.

9.12 Flexible/Alternative Schedules
The City acknowledges that there may be benefits both to the City and to the employees in alternative schedules. Employees may request that their Department Heads consider alternative scheduling of their work. Examples of alternate schedules include flex time, job sharing, voluntary reduced work hours, and alternate work schedules.

Employees on flexible/alternate schedules shall continue to accrue time on the standard 8-hour day. Accrued leaves shall be charged based on the number of hours missed due to their flexible schedule.

If necessary for implementation of flexible/alternate schedules, an employee(s) may have a special FLSA seven (7) day work cycle established. Once established, the work schedule shall not be changed on a frequent or routine basis.

9.13 Notice of Work Schedule Changes
Except in the event of an emergency, all employees shall receive two weeks advance notice of any change in their regular schedule.

9.14 Health Savings Account
The City will work to establish a retiree Health Savings Account and will meet and confer with the unit regarding the potential benefit structure prior to implementation.

DocuSign Envelope ID: 45B9B79C-55C5-4CC6-9585-489D47D8F941

In Process
OE3 MOU 2022-2025 20

10.0 ENACTMENT
This Agreement shall become effective upon ratification by the City Council of the City of Watsonville and shall remain in full force and effect until June 30, 2020 or until a new Agreement has been executed. The parties agree to begin negotiations on a successor agreement no later than May 15, 2025.

OPERATING ENGINEERS LOCAL UNION NO. 3
_________________________________________ Date: _____________ Michael Moore, OE3 Business Representative
_________________________________________
Irma Haas, Employee Representative
_________________________________________
Alfonso Hernandez, Employee Representative
_________________________________________
Joaquin Vasquez, Employee Representative
_________________________________________
Cheyne Barba, Employee Representative

CITY OF WATSONVILLE
_________________________________________ Date: _____________ Tamara Vides, City Manager Pro Tempore
_________________________________________ Date:______________ City Attorney
_________________________________________ Date:______________ City Clerk
DocuSign Envelope ID: 45B9B79C-55C5-4CC6-9585-489D47D8F941 6/24/2022 | 2:17 PM PDT

Reso No. (CM)
C:\Program Files\eSCRIBE\TEMP\15374554852\15374554852,,,RESOLUTION APPROVING MOU BETWEEN CITY AND POLICE OFFICERS ASSOCIATION FY 22-25.docx
ri 6/23/2022 3:37:47 PM
1 RESOLUTION NO. (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

RATIFYING A MEMORANDUM OF UNDERSTANDING BETWEEN THE
CITY AND THE POLICE OFFICERS ASSOCIATION FROM JULY 1, 2022 TO JUNE 30, 2025
WHEREAS, in accordance with provisions of the Meyers Milias Brown Act (Government Code Section 3500 et seq.), City of Watsonville's Resolution No. 56-08 (CM), and City of Watsonville Administrative Rule V.1.1., the bargaining team from the City met and conferred in good faith with the bargaining team from the Watsonville Police Officers Association regarding the terms and conditions set forth in the Memorandum of Understanding, a copy of which is attached hereto and incorporated herein by reference; and
WHEREAS, the Council of the City of Watsonville, after reviewing the Memorandum of Understanding, wishes to ratify the Memorandum of Understanding.

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

1. This action is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15378(b)(5), in that adopting a Resolution approving the Memorandum of Understanding between the Municipal Employee Relations Officer and the Police Officers Association Unit does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and if a “project,” is exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen

Reso No. 190-20 (CM)
C:\Program Files\eSCRIBE\TEMP\15374554852\15374554852,,,RESOLUTION APPROVING MOU BETWEEN CITY AND POLICE OFFICERS ASSOCIATION FY 22-25.docx
ri 6/23/2022 3:37:47 PM
2 with certainty that there is no possibility that this action may have a significant effect on the environment.

2. That the Memorandum of Understanding between the City and the Police Officers Association, with a term from July 1, 2022 to June 30, 2025, attached hereto as Exhibit “A,” and incorporated herein by this reference, is hereby ratified . ********************************

MEMORANDUM OF UNDERSTANDING

BETWEEN

WATSONVILLE POLICE OFFICERS

ASSOCIATION

AND THE CITY OF WATSONVILLE
2022-2025
DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

1 POA 2022-2025 MOU

TABLE OF CONTENTS

1.0 GENERAL PROVISIONS............................................................................................... 3

2.0 RECOGNITION ............................................................................................................... 3

3.0 AUTHORIZED DEDUCTIONS...................................................................................... 3

3.1 Dues...................................................................................................................................3

3.2 Hold Harmless ...................................................................................................................3

4.0 BULLETIN BOARDS ...................................................................................................... 4

5.0 USE OF CITY FACILITIES ........................................................................................... 4

6.0 NON-DISCRIMINATION............................................................................................... 4

7.0 UNION ACCESS .............................................................................................................. 4

8.0 REASONABLE TIME OFF ............................................................................................ 4

9.0 HOURS OF WORK AND SHIFT SCHEDULES.......................................................... 5

9.1 Work Schedule and Change of Shift..................................................................................5

9.2 Hours of Work ...................................................................................................................6

9.3 Continuation of 4-10 Work Schedule ................................................................................6

9.4 Investigations Schedule .................................................................................................6

10.0 MEDICAL AND INSURANCE COVERAGES............................................................. 7

11.0 OVERTIME ...................................................................................................................... 7

12.0 COURT TIME OFF ......................................................................................................... 9

13.0 COMPENSATORY TIME OFF ..................................................................................... 9 14 .0 HOLIDAYS ....................................................................................................................... 9

15.0 UNIFORM AND SAFETY EQUIPMENT................................................................... 10

15.1 Safety Equipment ........................................................................................................10

15.2 Uniforms......................................................................................................................10

15.3 Optional Equipment.....................................................................................................11

15.4 Required Equipment and Uniform Standards..............................................................11

15.5 Replacement of Safety Equipment ..............................................................................11

15.6 Personal Property.........................................................................................................11

15.7 Clothing Replacement .................................................................................................11

16.0 VACATION..................................................................................................................... 12

17.0 SICK LEAVE.................................................................................................................. 13

18.0 FAMILY CARE AND MEDICAL LEAVE POLICY................................................. 13

19.0 PAID LEAVE.................................................................................................................. 14

20.0 EDUCATION INCENTIVE PLAN............................................................................... 15 21 .0 PAY DIFFERENTIALS................................................................................................. 15

21.1 Field Training Officers................................................................................................15

21.2 F.T.O Pay.....................................................................................................................15

21.3 Acting Sergeant Assignment .......................................................................................16

21.4 Acting Sergeant Pay ....................................................................................................16

21.5 Detective Pay...............................................................................................................16

21.6 Bilingual Pay ...............................................................................................................16

21.7 Motorcycle Pay............................................................................................................17

21.8 Canine Pay...................................................................................................................17

21.9 Longevity ......................................................................................................................17

21.10 Shift Differential .........................................................................................................17

22.0 SALARY.......................................................................................................................... 18 23 .0 RETIREMENT............................................................................................................... 19

24.0 DEFERRED COMPENSATION PLAN....................................................................... 20

25.0 TUITION REIMBURSEMENT.................................................................................... 20

26.0 RESIDENCY................................................................................................................... 20

27.0 MANAGEMENT RIGHTS............................................................................................ 20

28.0 PEACEFUL PERFORMANCE .................................................................................... 22

29.0 PHYSICAL FITNESS .................................................................................................... 22 DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

2 POA 2022-2025 MOU

30.0 VEHICLES...................................................................................................................... 22

31.0 GRIEVANCE PROCEDURE........................................................................................ 23

32.0 HEPATITIS/TB TESTING............................................................................................ 23

33.0 SAVINGS CLAUSE........................................................................................................ 23

34.0 ELIGIBIITY LIST ......................................................................................................... 23

35.0 ENACTMENT ................................................................................................................ 23 DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

3 POA 2022-2025 MOU

MEMORANDUM OF UNDERSTANDING

BETWEEN

WATSONVILLE POLICE OFFICERS ASSOCIATION

AND THE CITY OF WATSONVILLE
2022-2025
This Memorandum of Understanding made and entered into this 1st day of July , 2022, by and between the representatives of the City Manager of the City of Watsonville (hereinafter the "City") and Watsonville Police Officers Association (hereinafter the "Association") affiliated with California Organization of Police and Sheriffs (hereinafter the "Association") for and on behalf of Police Officers.

1.0 GENERAL PROVISIONS

1.1 Effective July 1, 2022, and continuing through and including June 30, 2025, this Memorandum contains all items agreed upon by and between the City and the Association.

1.2 The Personnel Rules and Regulations of the City of Watsonville are not altered, changed or modified by this M .O .U. unless a specific reference is made herein.

1.3 Existing salaries and monetary benefits not changed, modified or specifically made reference to in this Agreement, shall remain in full force and effect during the term of this M .O .U.

2.0 RECOGNITION
The City hereby recognizes the Association as the only bargaining representative of all employees in the classification of Police Officer.

3.0 AUTHORIZED DEDUCTIONS

3.1 Dues
The City agrees to deduct from the wages of employees dues in the amount and for the term prescribed by members of the Association. Any employee desiring to have such deduction made must sign an appropriate assignment form. City shall remit such deduction each month to the Treasurer of the Association in accordance with normal payroll procedure.

3.2 Hold Harmless
The Association shall indemnify and hold City harmless from any and all claims, demands, suits, or any other action arising from the deduction DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

4 POA 2022-2025 MOU
of said sums, including all costs and attorney's fees incurred by the City in defending same.

4.0 BULLETIN BOARDS
Reasonable space shall be allowed on bulletin boards as specified by the Police Chief for use by the Association to communicate with all employees. Posted material shall not be obscene, derogatory or of a partisan political nature, nor shall it pertain to public issues. All posted material shall bear the identity of the sponsor, shall be neatly displayed and shall be removed when no longer timely.

5.0 USE OF CITY FACILITIES
Subject to approval by management, City facilities shall be made available upon timely application for use by employees and the Association. Application for such use shall be made to the management person under whose control facility is placed.

6.0 NON-DISCRIMINATION

6.1 The City, the Association and the Union will continue to comply with applicable laws prohibiting discrimination on the basis of age, race, color, creed, religion, gender, gender identity, sexual orientation, national origin, marital status or registered domestic partnership, medical condition including genetic characteristics, or physical or mental disability.

6.2 The City shall not discharge or otherwise discriminate against any employee by reason of any Union activity not interfering with the performance of his work; and the Union, the Association and its members shall not in any manner discriminate against any employee by reason of his refusal to engage in Union activity.

6.3 The City recognizes and agrees to abide by the Police Officers' Bill of Rights.

7.0 UNION ACCESS
Any authorized representative of the Union shall have the right to contact individual employees working within the unit represented by his organization in City facilities during business hours on matters within the scope of representation, provided arrangements have been made for such contact with the Police Chief or his designated representative, who shall grant permission for such contact if in his judgment it will not disrupt the activities of the Police Department. When contact on the work location is precluded by confidentiality of records or of work situations whether for safety of employees or the public or by disturbance to others, the Police Chief or his representative shall have the right to designate an alternative to the work area.

8.0 REASONABLE TIME OFF
Employee members of the Association shall be allowed reasonable time off without loss of pay for the purpose of participating in contract negotiations. Employee members of the Association shall be extended the same privilege to participate in any DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

5 POA 2022-2025 MOU
meetings mutually called by the parties during the term of this Agreement for review of grievances and contract compliance questions. There shall be no more than three (3) employees excused from their duties at any one time to participate in these functions.

9.0 HOURS OF WORK AND SHIFT SCHEDULES

9.1 Work Schedule and Change of Shift
The Police Chief or his designated representative shall prepare a schedule showing the hours each employee of the department is to work except in emergency situations. The Police Chief shall give thirty (30) calendar days notice of a change in shift schedules and there shall be ten (10) calendar days notice of change in individual assignment except in cases of emergency or in cases of temporary assignment to maintain minimum staffing requirements caused by scheduled leave. Notice of change of individual assignment to maintain minimum staffing under these conditions shall be at least three (3) calendar days. No prior notice shall be required in emergency situations.

Employees assigned to the Operations Division will be allowed to select their shift based on seniority in classification.

Exceptions to the scheduling and seniority provisions set forth above:

1. Field Training Officers (FTOs) will select their shifts based upon seniority, however, there shall be only one (1) FTO assigned to the following shifts: Gold days/swings/graveyard, and Blue
days/swing/graveyard shifts.

2. Canine Handlers will be exempt, with the exception of selection within the unit.

3. Traffic personnel will be exempt, with the exception of selection within the unit.

4. Certified bilingual personnel may be exempt to ensure adequate allocation among shifts.

5. Probationary employees will be placed administratively on a team and shift.

6. Exemption: through the evaluation process, disciplinary action, legitimate operational needs, distribution of probationary employees, personnel hardship, medical reasons, legal reasons or restrictions, or extenuating circumstances, and officer may be assigned or reassigned to a certain shift.

7. Employees with at least 25 years of service that are assigned to the Operations Division will select the shift of their desire without DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

6 POA 2022-2025 MOU
restriction so long as such selections do not preclude the Department from staffing each shift with requisite specialty assignments or skills needed per department or operational needs (i.e. two bilingual officers per shift, one FTO, etc.).

9.2 Hours of Work
The normal work week for all covered employees not assigned to the Patrol Division shall consist of forty (40) hours; eight (8) hours per day not including meal periods and other approved break periods. Covered employees assigned to the Patrol Division shall work eighty (80) hours per two-week work period including meal periods and other approved breaks.

9.3 Continuation of 4-10 Work Schedule

9.3.1 The Department shall continue the 4-10 work schedule through the term of this agreement (except as provided for in Sections 9.3.4 and

9.3.7). The work schedule shall apply to individuals assigned to patrol and any other divisions as specified by the Chief of Police.

9.3.2 The Department shall have the option of scheduling employee's holidays off in conjunction with the employees regular days off.

9.3.3 The Department shall assign shifts and days off to employees scheduled on the 4-10 work schedule. Employees may indicate a preference for shifts and or days off prior to Department scheduling.

With the approval of the Department, employees may trade work schedules.

9.3.4 If at any time Department staffing drops below a total of thirty four (34) in the classification of Police Officer (including trainees), the Department shall have the option of immediately discontinuing the 4- 10 schedule until such time as staffing rises to thirty four (34) police officers or more.

9.3.5 Individuals working the 4-10 schedule shall accrue time off at current (5-8 schedule) rates, converted to hours. Time off shall be charged at actual hours; ie. 10 hours per day. Effective January 1, 2008, the holiday accrual rate shall be consistent with a 10-hour schedule.

9.4 Investigations Schedule
All sworn officers assigned to the Investigations Division are scheduled to work an 80-hour work period within a two-week pay period. Detectives shall be on a 4/10 schedule. Days off will be on Mondays and Fridays with half the staff off on either day. If the Police Chief determines it is operationally necessary to change to a 5/8 schedule, this may be implemented after providing 30 days notice to the employees and Association unless a shorter amount of DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

7 POA 2022-2025 MOU
notice is necessary for Department operations. Similar to patrol officers, the lunch period will be termed a "working lunch" and such a period shall not significantly detract from the workday.

City Holidays will be observed. If a holiday falls on a scheduled day-off, the employee will take a different day off that doesn’t impact staffing.

The Chief of Police, upon consultation with the Association, may re-instate the 5/8 schedule at his discretion.

10.0 MEDICAL AND INSURANCE COVERAGES

10.1 Medical Insurance
The City shall retain in effect current health insurance coverages for all Unit employees. The following is the current monthly amount the City pays per full time employee.

July 1, 2022 $1,175.78
The City shall contribute the same monthly amount per full time employee towards health insurance coverage as provided to Fire Local 1272 or the City’s Management Unit, whatever is greater.

10.2 Beginning on or after December 1, 2022 any annual health plan increases will be shared equally between the City and the Employees, provided the increased City and Employee contributions do no exceed $45 per month per employee.

Increases above the $45/month cap are subject to the meet and confer process.

Effective the first full pay period after ratification by the Union and approval by the City Council, the current monthly rate paid by POA shall be reduced to $379.22.

10.3 The Unit agrees to participate jointly with the City and other employee groups in review of insurance coverages during the term of this agreement. Upon health insurance committee recommendations to change or modify insurance coverages; the parties agree to reopen negotiations on this issue only.

10.4 The City shall maintain in effect life coverage for Unit employees of Fifty Thousand Dollars ($50,000.00) for the insured and Two Thousand Dollars ($2,000.00) for dependents. The City will attempt to amend its policy to allow employees to purchase, at his/her option, additional coverage at the City's rate.

11.0 OVERTIME

11.1 Employees required to work more than the hours in their regularly assigned shift (i.e more than eight (8) hours in one day if on a 5/8 schedule or more than ten (10) hours in one day if on a 4/10 schedule) or more than forty (40) hours in one assigned work week shall be compensated at one and one-half (1-1/2) times their regular pay rate for time worked in excess of the limits noted above.

DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

8 POA 2022-2025 MOU

11.2 For purposes of calculating overtime compensation, approved leave (except leave without pay) shall be considered as time worked.

11.3 Employees who are recalled to duty shall be entitled to a minimum of four (4) hours overtime compensation. Employees called in early for a duty shift or held over from a duty shift shall not be entitled to the four-hour recall minimum, but shall be entitled to regular overtime compensation.

11.4 There shall be no pyramiding of overtime.

11.5 All required off-duty training and mandatory meetings shall be paid at overtime.

11.6 Assigned training time will be considered as time worked.

11.7 All overtime, including court time, shall be paid from the time an employee leaves the Police Department building until they return to it.

11.8 In the event it is mandatory to fill an overtime position, patrol or special event, the following shall be applied:

1. Except in cases of emergency, notice of mandatory overtime shall be issued at least ten (10) calendar days in advance for pre-planned events, and three (3) calendar days for all other situations.

2. Mandatory overtime shall be assigned at the bottom of the seniority list except for the following exceptions:
a. Employee is working
b. Employee has not had a separation of work assignments of eight (8) or more hours
c. There must be a separation of six (6) months or more from mandatory overtime assignments unless the pool of eligible officers has been exhausted. In the event this happens a six (6) month separation will not be required.
d. Light duty employees, employees off of work due to injury or administrative leave
e. Employee is unavailable due to the mandatory overtime day overlapping with a pre-approved vacation on his/her days of work f. Declaration in the form of a memorandum, to the preparer of the overtime, that the employee is unavailable due to a pre-planned event.

The Division Captain or his/her designee will render the final decision.

3. The Department shall maintain an updated list identifying the employees who are subject to the mandatory overtime assignment each day.

DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

9 POA 2022-2025 MOU
12 .0 COURT TIME
Employees who must return from off-duty status to make court appearances on behalf of the City shall receive overtime in accordance with Section 11.0 of this M.O.U. A minimum of four (4) hours over-time shall be paid each court appearance involving a separate return from off duty status. This four (4) hour minimum compensation shall not apply for appearances occurring during an extension of the regular workday either before or after the assigned shift. The employee shall not receive more than one (1) four (4) hour minimum compensation on a single court day, unless there are separate callbacks more than four (4) hours apart.

Employees anticipating court appearances are responsible for checking the Santa Cruz County District Attorney’s online scheduling system, or the current acceptable practice. Employees shall continue to be responsible for calling appropriate tape recordings and/or phone numbers to receive updated information as to court appearances. The City will institute a centralized system for notifying Officers of court appearance changes through the Records Division; and maintain a system of logging all calls handled by the Division. Employees shall still be responsible for responding to calls received directly from the Court or its officers. If employees are contacted a minimum of two hours prior to a Santa Cruz court appearance or a minimum of one hour prior to a Watsonville court appearance, they shall not appear in court and no minimum payment shall be due.

13.0 COMPENSATORY TIME OFF
The POA and the City agree to execute a Pilot Program for FLSA Compensatory Time Off (“CTO”). POA members will have the option to earn up to forty-five (45) hours total of CTO earned at OT rate (in lieu of overtime) during a calendar year. Officers electing to use earned CTO will request time off following the same WPD/MOU policies regarding vacation time-off requests. Unused CTO will automatically be cashed out on the second pay date of December. This Pilot Program will expire on December 31, 2023. Prior to the expiration of the pilot program, but no later than November of 2023, the parties agree to meet and confer on continuing the program. If no agreement is reached by December 31, 2023, the Pilot Program will automatically terminate.
14 .0 HOLIDAYS
The following holidays will be observed for the term of this agreement:

January 1 (New Year's Day)
Third Monday in January (Martin Luther King's Birthday) February 12 (Lincoln's Birthday)
Third Monday in February (Washington's Birthday)
Last Monday in May (Memorial Day)
July 4
First Monday in September (Labor Day)
November 11 (Veteran's Day)
Thanksgiving Day
DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

10 POA 2022-2025 MOU
Friday following Thanksgiving (in lieu of Election Day) December 24 (in lieu of Admission Day)
December 25 (Christmas)
December 31
Recognized holidays which fall on Saturday shall be observed on the preceding Friday. Recognized holidays which fall on a Sunday shall be observed on the following Monday.

Employees assigned to a 5/8 work schedule will observe the holidays specified in the MOU. In addition, beginning in 2020, officers assigned to a 5/8 work schedule will observe Cesar Chavez Day and will be provided with 8 hours of CTO on the first full pay period in January which will expire on the the last full pay period of December of that same year if not used. This equates to a total of 120 hours to equal those on a 4/10 schedule.

Employees assigned to the detective bureau working a 4/10 schedule will observe the City recognized holidays, as specified in the MOU, with the exception of Lincoln’s Birthday. Employees assigned to the detective bureau will therefore receive a total of 12 holidays.

Employees assigned to a 4/10 work schedule (or any other alternative work schedule) will receive 10 hours of holiday pay per month, for a total of 120 hours of holiday pay.

Holiday time-off will generally be as follows: Blue team holidays will be taken the first Wednesday of every month and Gold team holidays will be taken every third Wednesday. The Department has the discretion to change these days with proper advanced notice.

15.0 UNIFORM AND SAFETY EQUIPMENT

15.1 Safety Equipment
The City shall provide all safety equipment which is mandated by State law or required by the Chief of Police. The Chief shall determine the suitability of all safety equipment. In the event a Police Officer desires to replace any issued item for a different type, such replacement shall require the approval of the Chief and shall occur at the expense of the Officer.

15.2 Uniforms
All employees are responsible for obtaining and maintaining all mandatory uniform items subject to the provisions below.

15.2.1 Uniform allowance shall be provided at One Thousand Two Hundred ($1,200.00) Dollars per year per officer for the purchase and maintenance of required uniform items and footwear.

DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

11 POA 2022-2025 MOU

15.3 Optional Equipment
With the approval of the Chief, Police Officers may carry additional items for their use while on duty at their own expense.

15.4 Required Equipment and Uniform Standards
The Chief of Police shall issue a list of all required safety equipment, uniform items, approved optional equipment, and standards for the wearing of uniforms.

15.5 Replacement of Safety Equipment
All uniform and/or safety equipment items issued to the employee by the City shall remain the property of the City whether new issue or replacement.

All replacement of worn, damaged, or faulty equipment will require that the items to be replaced be surrendered to the Chief of Police or his authorized representative.

15.6 Personal Property
For purposes of replacement or repair of personal property destroyed in the line of duty, the City will pay up to $200 for replacement, repair, or insurance deductible (whichever is less) for the following:
1) Watch
2) Prescription eyeglasses
3) Prescription or non-prescription sunglasses or reading glasses 4) Personal cell phone
5) Earpieces
Proof of damage occurring while acting in the course and scope of employment including a police report shall be submitted along with proof of replacement cost and submitted through the reimbursement process as established by the Department. In the event the cost of repair or replacement exceeds $200, the employee may be reimbursed for any additional sums that are found to be reasonable. The reasonableness of any such additional sums shall be determined by the Chief of Police whose decision is final. The above replacement payments will not be paid more than one time for any of the above items within a contract year.

15.7 Clothing Replacement
Uniform and clothing items damaged in the line of duty will be replaced or repaired at City expense. Items repaired must be repaired in such a way as to be deemed acceptable at City inspections. Replacement will take place only when the damage was not due to the negligence of the employee. Personal clothing items damaged in the line of duty would be repaired or the City will pay the reasonable value of the irreparable item\s not to exceed $150 per year.

DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

12 POA 2022-2025 MOU

16.0 VACATION

16.1 Vacation Accrual
Each officer shall accrue vacation at the following rates:

From 0 to 5 years of service - 96 hrs/year
From 5 to 13 years of service - 128 hrs/year
From 13 years or more - 160 hrs/year

16.2 Maximum Vacation Accrual
Employees with more than two (2) times their annual vacation accrual on the books shall bring their accrual within the accrual maximum by June 30, 2022.

After one year of service, each employee will be expected to take during each year the vacation to which he/she is entitled. After June 30, 2022 when an employee’s vacation balance reaches two times their annual vacation accrual, the employee will not accrue vacation until the vacation balance is below the accrual maximum. If an employee is denied requested vacation due to the needs of the City, the department must send a memo explaining the situation for consideration by the City Manager prior to the employee reaching the maximum accrual. Only the City Manager may grant temporary exceptions to this section in extraordinary circumstances.

16.3 Vacation Cash Out
Employees may cash out up to 80 hours of vacation provided that they retain on the books at least 80 hours of vacation at the time of cash out. Cash out will be on the second pay date in December with a 12 day notice to payroll prior to the relevant pay day.

Thereafter, cash out of up to 80 hours may only occur in December as defined above.

16.4 Vacation Sign-Up
The following system shall be utilized for vacation sign up:
(1) Employees may sign up for vacations by seniority with sign up to be completed by February 1 of each calendar year. After this time period, all sign-ups will be done on a first-come, first-served basis. (2) Cancellations of vacations will be done in writing.

DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

13 POA 2022-2025 MOU

17.0 SICK LEAVE

17.1 Each employee shall accrue sick leave in the amount of one and one-quarter (1-1/4) days per month of service (10 hours). Sick leave is payable only in the cases of bona fide illness or injury.

17.2 The maximum accumulation of unused sick leave is 125 days (1,000 hours).

Sick leave accumulated in any calendar year in excess of 125 days (1,000 hours) shall be paid at the rate of fifty percent (50%) of such excess. The balance of such unused sick leave is lost and the sick leave accrual is reduced to 125 days (1,000 hours) at January 1 of each year. Unused sick leave may not be used to delay the date of an employee's disability retirement.

17.3 In accordance with California "Kin Care" law, in the event of an illness in the immediate family, an employee shall be granted accrued sick leave not to exceed one-half of the annual sick leave allowance (7.5 days) by the department head. For the purposes of this section, immediate family shall include parents, spouses, domestic partners and children. For purposes of this section, “parent” and “child” include biological, foster, adopted, step, or legal guardian relationships and a “child” also includes the child of a domestic partner. Where unusually close ties exist, the department may determine other relationships to be included in the definition on a case-by-case basis.

18.0 FAMILY CARE AND MEDICAL LEAVE POLICY

18.1 In accordance with the Federal Family and Medical Leave Act (FMLA) and the California Family Rights Act (CFRA), the City of Watsonville (City) will provide unpaid family and medical care leave for eligible employees for up to 12 weeks per 12-month period for the following reasons only:
a. The birth of a child or to care for a newborn of an employee; b. The placement of a child with an employee in connection with the adoption or foster care of a child;
c. Leave to care for a child, parent or spouse who has a serious health condition; or
d. Leave because of a serious health condition that makes the employee unable to perform the functions of his/her position.
e. A qualifying exigency arising out of the fact that an employee’s spouse, domestic partner, child or parent is on active military duty or has been notified of an impending order to active duty (“Qualifying Exigency Leave”).

An eligible employee is entitled to up to twenty-six (26) workweeks of military caregiver leave during a single twelve (12) month period. The twelve (12) month period begins on the first day the employee takes leave and ends twelve DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

14 POA 2022-2025 MOU
(12) months after that date. Unlike other types of family medical leave, military caregiver leave is a one-time entitlement only; it does not renew annually. This leave entitlement does not increase the amount of leave an employee may take for other FMLA/CFRA qualifying reason during a single 12-month period. However, the employee is limited to taking a maximum of twenty-six(26) weeks during the single 12-month period. For example, an employee may combine military caregiver leave with other types of family medical leave during a single 12-month period. However, the employee is limited to taking a maximum of twenty-six (26) weeks of leave in such circumstances.

Military caregiver leave is to care for a military service member who is undergoing treatment for a serious injury or illness incurred in the line of active duty, or a veteran who is being treated for a serious injury or illness that occurred in the line of active duty during the five years preceding the date of treatment, if the employee is the spouse, domestic partner, child, parent or next of kin of the service member (“Military Caregiver Leave”).

When applicable, an eligible family member may take the qualifying exigency leave up to a maximum of fifteen (15) days to match a military member’s Rest and Recuperation leave orders.

18.2 An employee is eligible for leave if the employee:

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

2. Has been employed for at least 1,250 hours during the 12-month period immediately preceding the commencement of the leave,

18.3 If an employee requests leave for any reason permitted under this policy, he/she must exhaust all accrued leaves (except sick leave) in connection with the leave. The exhaustion of accrued leave will run concurrently with the leave under this policy.

If an employee requests leave for his/her own serious health condition, in addition to exhausting accrued leave, the employee must also exhaust accrued sick leave. Workers compensation disability leave and 4850 leave will run concurrently with family leave.

18.4 This section provides a benefit summary only. For further information, refer to the City's Administrative Rule on this subject.

19.0 PAID LEAVE
Paid leave may be taken in increments of less than one (1) day subject to normal leave procedures. Seventy-two (72) hours advance notice of absence except in case of emergency or sickness will be given to the department by all officers.

DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

15 POA 2022-2025 MOU

20.0 EDUCATION INCENTIVE PLAN
Employees who have obtained a POST Intermediate Certificate or an A.A. or A.S. degree will receive differential pay of two and one half percent (2.5%) of the base wage rate. Any employee who has received a POST Advanced Certificate or a B.A. or B.S. Degree will receive differential pay of five percent (5%) of the base wage rate.

Employees who thereafter obtain such certificates will be paid in the applicable differential commencing with the first full pay period after submitting documented proof of same to the City.

Employees with a Master’s degree shall receive and additional 2.5% for a total of

7.5% Educational Incentive Pay on the first full pay period after verification is provided to Human Resources.
21 .0 PAY DIFFERENTIALS

21.1 Field Training Officers
The position of Field Training Officer shall be regularly assigned. Officers assigned as Field Training Officer shall serve at the pleasure of the Chief of Police. Field Training Officers shall be responsible for assisting in the training of new personnel and participating in the ongoing departmental training program as directed by the Department Administration. Field Training Officers shall also serve as Acting Sergeant in the absence or disability of a regularly assigned Sergeant and assist the Shift Supervisor in the management and supervision of assigned personnel. It is understood that transfer from the FTO program is not necessarily a matter of disciplinary action and may or may not require a notice other than that described in Section 9 .0 and its subsections.

21.2 F.T.O Pay
Officers assigned as Field Training Officers shall receive a five percent (5%) differential of base pay only while assigned to serve in that capacity.

21.2.1 Temporary Field Training Officer (FTO)
A Temporary Field Training Officer (FTO) is a temporary duty assignment based on the needs of the Department and must meet the requirements set forth in the Officer Transfer Policy (OTP)
An officer assigned as a Temporary FTO will serve in the capacity for a minimum of one full pay-period and a maximum time as determined by the Police Chief, Assistant Police Chief, or Captain, but not to exceed six months.

The Temporary FTO position will not be created to supplant the regular FTO positions, but only to supplement the FTO program, as needed.

DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

16 POA 2022-2025 MOU
An officer assigned as a Temporary FTO is responsible for the same duties as a regular FTO, whether or not they are assigned a recruit for the entire designated time period. This includes administrative duties as determined by the FTO Sergeant or Captain in the chain of command.

A temporary FTO must successfully complete the training required by POST and State Law prior to being assigned as a temporary FTO.

Employees assigned to temporary FTO position will earn a 5% differential “Temporary FTO Pay” which is not reportable to CalPERS per state law.

21.3 Acting Sergeant Assignment
Any Officer other than an FTO who serves as Acting Sergeant for more than fifteen (15) consecutive work days shall be entitled to a five percent (5%) increase in pay or assignment to a salary range within the classification of Sergeant, whichever is greater, so long as the Officer serves as Acting Sergeant.

21.4 Acting Sergeant Pay
In the event that an Officer other than an F.T.O. is required to serve as Acting Sergeant, that Officer shall receive no additional pay except as noted herein.

21.5 Detective Pay
Officers assigned to the Detective Bureau shall receive a differential of five percent (5%) for the period of their assignment as a Detective. Assignment to the Detective Bureau shall be at the sole discretion of the Chief of Police. It is understood that transfer from the Detective Bureau is not necessarily a matter of disciplinary action and may or may not require a notice other than that described in Section 9.0 and its subsections.

Detective differential pay shall be understood to provide compensation for the Detective standby system. Detectives assigned to SCNET shall continue to receive the differential while on special assignment. Standby shall be defined as from 5 :00 p.m. to 8:00 a .m. weekdays and twenty-four hours per day on weekends and holidays. One officer at a time shall be assigned stand-by on a rotational basis. When assigned standby, officers shall maintain pager contact with the City.

21.6 Bilingual Pay

21.6.1 Officers who can demonstrate proficiency in reading and speaking the Spanish language shall receive a bonus pay of five percent (5%) of base pay per month. This bonus shall apply to Officers in regular active service to the City.

DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

17 POA 2022-2025 MOU
The City shall establish a method of testing for competency in the Spanish language. An Officer must pass the City's competency test on an annual basis to maintain the bonus pay. The City Manager may waive the annual testing requirement for individuals upon recommendation of the Police Chief.

21.6.2 The City may assist interested officers in achieving the proficiency level necessary to qualify for bilingual pay. When available, this assistance may take the form of on-site Spanish classes. The City shall schedule the classes in such a way as to provide reasonable amounts of on-duty class time for employees on different shifts. Any employee attending a class while not on regular duty hours or studying shall do so on their own time. Attendance at Spanish classes shall be strictly voluntary.

21.7 Motorcycle Pay
Officers assigned to motorcycle duty shall receive a pay differential of5%.

Individuals assigned motorcycles shall receive all required safety equipment, including jacket, breeches, helmet, gloves, glasses, and boots. Individuals assigned to motorcycle duty should be expected to respond to fatal or major injury collisions or as needed at the direction of the Police Chief. Assignment to Motorcycle duty shall be at the sole discretion of the Chief of Police. It is understood that a transfer from motorcycle duty is not necessarily a matter of disciplinary action and may or may not require notice other than that described in Section 9.0 and its subsections.

21.8 Canine Pay
In lieu of all current formal and informal compensation, employees assigned by the Chief of Police to canine duty shall receive compensation in the amount of three and one half (3.5) hours additional overtime time pay per week. This pay shall be mutually understood to compensate the employee for the additional time required to care for their assigned animal. No additional time shall be spent on care without the expressed direction of the Department.

21.9 Longevity
Any employee with at least 10 years of service as a sworn peace officer with the City of Watsonville shall receive a two percent (2%) Longevity Pay Premium, and any employee with at least 20 years of service as a sworn peace officer with the City of Watsonville shall receive an additional two and onehalf percent (2.5%) longevity pay premium (for a total four and one-half percent (4.5%) longevity pay premium).

Employees shall not be eligible for Longevity Premium Pay if the employee is designated as a Master Officer. Employees, listed in the attachment to this Side Letter, that are eligible to become qualified for the Master Officer Program but are not yet qualified may elect to participate in the Longevity Pay Premium plan.

DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

18 POA 2022-2025 MOU

21.10 Shift Differential
Employees assigned to graveyard shift will be subject to a 2.5% shift differential effective the first full pay period after July 1, 2019 or ratification of the contract. This does not apply to shift trades, overtime, or other short term assignments requiring occasional graveyard work.

Effective the first full pay period after July 1, 2020, the graveyard shift differential shall be increased an additional 2.5% for a total of 5.0%.

22.0 SALARY
Year 1: 3.0% salary increase effective on the later of the first full pay period after July 1, 2022 or the first full pay period on or after the date the Agreement is both ratified by the Union and approved by the City Council.

One Time Pandemic Relief
On the first full pay period after City Council approval and unit ratification, POA members shall receive a $2,000 one-time payment in recognition of the unique workplace challenges brought upon by the pandemic.

Year 2: On the first full pay period after July 1, 2023 all members shall receive 3.3% salary increase.

Year 3: Effective on the pay period on or after July1, 2024 a new top step will be created at 5% higher than the current top step. Members who have been at top step for a least one (1) year as of the effective date will receive the new step on the first full pay period on or after July 1, 2024. This top step will become the new step 6. All other steps will be renumbered accordingly and employees not at top step for at least one-year will be placed at the newly numbered step at their current salary rate. Employees not at top step will advance to a new step at their normal anniversary date per City rules. Police Officers at step 0 shall be held at their same salary step and range in existence prior to the implementation of the new top step and range until such time as they reach their anniversary date and can be placed in the new salary range at 'step 0'. Police Officer Trainees who are hired prior to the implementation of the new salary range and move into the Police Officer classification after July 1, 2024 shall be placed in the salary range in existence at their time of hire and will not be placed on the new salary range (effective first full pay period after July 1, 2024) until such time that they reach their anniversary date. Any new employee hired after the first full pay period following July 1, 2024 will be hired at the new salary range.

DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

19 POA 2022-2025 MOU
23 .0 RETIREMENT

23.1 Tier 1 The following benefits are included in the City's retirement plan for employees hired on or before July 1, 2011:
(a) 3% at 50 formula.
(b) Single Highest Year
(c) 1959 Survivor Benefits Fourth Level: Employee to pay employee contribution, City to pay employer contribution for Fourth Level Benefit.
(d) Government Code 21222 .1 funded to May 31, 1983.
(e) Government Code 21222 .2.
(f) Military Service Credit
(g) Credit for Unused Sick Leave Section 20862 .8
TIER 2: For employees hired between July 1, 2011 and December 31, 2012 and for Classics members as defined in the California Public Employees' Pension Reform Act of 2013 (PEPRA) and CalPERS guidance, hired after July 1, 2011 the retirement formula shall be 3% at 55 with final compensation based on the average of the highest wages earned in any consecutive 3-year period.

TIER 3: Pursuant to California Public Employee's Pension Reform Act of 2013 (PEPRA) the City shall provide the CalPERS 2.7% at 57 retirement plan for Public Safety employees hired on or after January 1, 2013. Final compensation shall be based on the average of the highest wages earned in any consecutive 3 year period. Public Safety employees subject to PEPRA shall pay at least 50% of normal cost of pension or what is determined by CalPERS to be the employee contribution rate.

23.2 Effective the pay period including July 1, 2007, employees in Tier 1 and Tier 2 shall pay the 9% employee contribution towards PERS pursuant to the terms and conditions of IRS Code section 414(h)(2).

Per PEPRA, Tier 3 employees shall contribute 50% of the normal cost of the CalPERS benefit, or what is determined by CalPERS to be the employee contribution rate.

Effective the first full pay period commencing on or after July 1, 2018 (or as soon thereafter as administratively feasible), all Tier 1, Tier 2 and Tier 3 members will contribute an additional three percent (3%) toward the cost of their respective retirement benefits. The parties mutually recognize and acknowledge that the additional employee contributions provided herein satisfy the cost-sharing terms set forth in Government Code section 20516.5.

DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

20 POA 2022-2025 MOU
Further, these additional employee pension contributions for Tier I and Tier II employees will be applied to the employee account with CalPERS pursuant to a contract amendment.

23.3 Any future income tax obligation resulting from these contributions shall be the exclusive responsibility of the employee. In the event the Internal Revenue Service shall change its current position and determine that such contributions constitute salary, not deferred compensation, any resulting tax obligations shall be the exclusive responsibility of the employee and the City shall not be held responsible therefore.

24.0 DEFERRED COMPENSATION PLAN

24.1 Deferred Compensation Plan
Employees shall be allowed to participate in a deferred compensation plan which currently exists for management personnel. The City will match contributions of up to $40 per pay check to the deferred compensation plan offered by the City effective the first full pay period July 1, 2022 or after ratification by the Union and approval by the City Council or when administratively feasible (expected to be in August 2022).

25.0 TUITION REIMBURSEMENT
Tuition reimbursement shall be governed by the City Administrative Rule and Regulation 3.1.1. City Administrative Rule and Regulation 3.1.1 Tuition Reimbursement is modified as follows:

Section II.2. is modified to allow reimbursement of claims not to exceed $2,000 per year.

It is acknowledged that employees may submit requests for POST training for approval for reimbursement provided, however, that it is acknowledged that training not mandated by the City shall be undertaken on the employee's own time.

26.0 RESIDENCY
As a condition of employment, all Safety employees hired by the City Police Department after July 2, 1983 shall, within six (6) months of date of hire, establish a bona fide residence and reside within a reasonable distance from the Watsonville Police Building. For this purpose "reasonable distance" shall be construed to mean fifty (50) miles.

27.0 MANAGEMENT RIGHTS
DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

21 POA 2022-2025 MOU
All City rights, under state law and charter, and all City rights which existed prior to the recognition of the P.O.A. shall remain vested with the City, unless expressly abridged by this M.O.U. These rights include but are not limited to:
 the exclusive right to determine the mission of its constituent departments, commissions, boards;
 set standards and levels of service;
 determine the procedures and standards of selection for employment and promotions; direct its employees;
 establish and enforce dress and grooming standards;
 determine the methods and means to relieve its employees from duty because of lack of work or other lawful reasons;
 maintain the efficiency of governmental operations;
 determine the methods, means and numbers and kinds of personnel by which government operations are to be conducted;
 determine the content and intent of job classifications;  determine methods of financing;
 determine style and/or types of City-issued wearing apparel, equipment or technology to be used;
 determine and/or change the facilities, methods, technology, means, organizational structure and size and composition of the work force and allocate and assign work by which the City operations are to be conducted;  determine and change the number of locations, relocations and types of operations, processes and materials to be used in carrying out all City functions including, but not limited to, the right to contract for or subcontract any work or operations of the City;
 to assign work to and schedule employees in accordance with requirements as determined by the City and to establish and change work schedules and assignments upon reasonable notice;
 establish and modify productivity and performance programs and standards;  discharge, suspend, demote, reprimand, withhold salary increases and benefits, or otherwise discipline employees in accordance with applicable law;  establish employee performance standards including, but not limited to, quality and quantity standards, and to require compliance therewith; DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

22 POA 2022-2025 MOU
 take all necessary actions to carry out its mission in emergencies ; and exercise complete control and discretion over its organization and the technology of performing its work.

The exercise by the City through its Council and management representatives of it rights hereunder shall not in any way, directly or indirectly, be subject to the recognized grievance procedure.

Section A. The City Manager and Department Heads have and will continue to retain exclusive-making authority on matters not officially and expressly modified by specific provisions of this M.O.U.

Section B. In the exercise of the rights set forth in Section 25 .0, the City of Watsonville has the right to make reasonable rules and regulations.

28.0 PEACEFUL PERFORMANCE
During the life of this Agreement, Unit employees shall not engage in any work stoppages, strikes, slow-downs, or boycott picketing . No lock-outs shall be made by the City. In the event that any employee covered by this Agreement, individually or collectively, violates the provisions of this section, the Association shall make a good faith effort to stop such violations of this section.

29.0 PHYSICAL FITNESS
Upon request, the Union agrees to meet and confer with the City during the term of this agreement on any proposed physical fitness programs developed by the City.

Should the City eliminate the existing exercise facility, it shall provide notice to the Union and, upon request, meet and confer with the Union in order to provide for an alternate, equivalent means of providing physical fitness facilities for unit members.

30.0 VEHICLES

30.1 The City and Union agree that the City shall be responsible for enforcing and adopting standards for the vehicle refurbishment program. Failure of the City to adhere to the refurbishment standards shall be subject to appeal through the grievance procedure.

30.2 The City shall continue to use State of California specifications for the purchase of patrol vehicles.

30.3 The City shall provide a take-home vehicle for personnel serving as canine handlers, traffic officers, and the on-call investigator.

DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248

23 POA 2022-2025 MOU

31.0 GRIEVANCE PROCEDURE
Upon mutual agreement of the City and an employee(s), formal grievances may be started at any agreed upon level of the Grievance Procedure.

32.0 HEPATITIS/TB TESTING
Upon request, the City would provide employees with Hepatitis and/or TB tests.

33.0 SAVINGS CLAUSE
If any provision of this Agreement shall be held invalid by operation of law or by any court of competent jurisdiction, or if compliance with enforcement of any provision shall be restrained by any tribunal, the remainder of this Agreement shall not be affected hereby, and the parties shall enter into negotiations for the sole purpose of arriving at a mutually satisfactory replacement for such provision.

34.0 ELIGIBILITY LIST
Effective September 6. 2018 the Eligibility List for Sergeant shall be two years and may not be extended. The eligibility list may be abolished by the Human Resources Director at any time subject to the request of the Police Chief.

35.0 ENACTMENT
It is understood that the foregoing shall be jointly submitted to the City Council for approval and upon approval this Agreement becomes final and binding.

WATSONVILLE POLICE OFFICERS

ASSOCIATION
Date: _______________ ______________________________
Octavio Barocio, POA President
Date: _______________ ______________________________
Date: _______________ ______________________________
Date: _______________ ______________________________

CITY OF WATSONVILLE
Date: _______________ ______________________________
Tamara Vides, City Manager Pro Tempore
DocuSign Envelope ID: 93017A55-32C0-4D9A-98D3-A3A680E1EB28 6/15/2022 | 11:12 AM PDT
DocuSign Envelope ID: 85088990-3A9F-492B-9EA9-2306A5A27248 6/15/2022 | 11:56 AM PDT
Charles Johnson, POA Vice President

6/23/2022 3:29:48 PM
C:\Program Files\eSCRIBE\TEMP\15294644278\15294644278,,,Report - Annual Fire Inspection Report 2021.docx Agenda Report
MEETING DATE: Tuesday, June 28, 2022
TO: City Council
FROM: FIRE CHIEF LOPEZ

ROSA MEYER, ADMINISTRATIVE ANALYST
SUBJECT: FIRE DEPARTMENT INSPECTION REPORT FOR 2021
STATEMENT OF ISSUES:

California Health & Safety Code §§ 13146.2 and 13146.3 requires that the City Council adopt a resolution acknowledging receipt of the annual fire inspection report.

RECOMMENDED ACTION:

It is recommended that the City Council adopt a resolution acknowledging receipt of the annual fire inspection report for 2021 required by California Health & Safety Code §§ 13146.2 and 13146.3.

DISCUSSION:

The Governor signed SB 1205 on September 27, 2018 after the tragic Ghost Ship Fire (December 2016) spotlighted fire safety laws and fire inspections. It became effective January 1, 2019. SB1205 enacted a new section in the California Health & Safety Code, codified at § 13146.4 which requires local fire departments to annually report on compliance with State required inspections. Specifically, SB1205 requires:

1. The Fire Department to perform annual inspections (pursuant to California Health & Safety Code §§ 13146.2 and 13146.3) and to annually report to the Council on compliance.

2. The Fire Department report on compliance when the Council discusses its annual budget, or at another time determined by the Council.

3. The Council acknowledges receipt of the Report in a resolution or a similar formal document.

4. The report lists all properties that were inspected by the Fire Department from January 1, 2021 through December 31, 2021. During the 2021 year, 23 schools, 49 restaurants, 76 apartment complexes, 262 commercial properties were inspected. A full list of all properties is attached.

Adopting the resolution satisfies the requirement that the Council acknowledges receipt of the inspection report.

6/23/2022 3:29:48 PM
C:\Program Files\eSCRIBE\TEMP\15294644278\15294644278,,,Report - Annual Fire Inspection Report 2021.docx STRATEGIC PLAN:

This item relates to the following Strategic Plan priorities:
3-Infrastructure & Environment
4-Economic Development
6-Public Safety
FINANCIAL IMPACT:

There is no financial impact.

ATTACHMENTS AND/OR REFERENCES (If any):

1. WFD Inspections Report 2021

2. SB 1205, filed September 27, 2018

Attachment 1

Attachment 1

Reso No. (CM)
Meeting Date: 062822 1
RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE ACKNOWLEDGING RECEIPT OF INSPECTIONS
REPORT FOR 2021 MADE BY THE FIRE CHIEF OF THEWATSONVILLE

FIRE DEPARTMENT WITH THE ANNUAL INSPECTION OF CERTAIN
OCCUPANCIES REQUIRED BY SECTION 13146.2 AND 13146.3 OF THE

CALIFORNIA HEALTH AND SAFETY CODE
WHEREAS, on or about September 27, 2018, Senate Bill 1205 was enacted, adding Health & Safety Code Section 13146.4, becoming effective January 1, 2019, requiring City and County Fire Departments to report annually to its administering authority or City Council, a State Mandate Compliance report; and WHEREAS, California Health & Safety Code Section 13146.2 and 13146.3 requires all fire departments that provide fire inspection services to perform annual inspections in every building identified as a public or private school, hotel, motel, lodging house, apartment house, and certain identified residential care facilities for compliance with building standards, as provided.

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

1. This action is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15378(b)(5), in that adopting a Resolution acknowledging report does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and if a “project,” is exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.

Reso No. (CM)
Meeting Date: 020822 2

2. That the City Council of the City of Watsonville hereby acknowledges receipt of the Watsonville Fire Department Inspections Report for calendar year 2021 attached hereto and incorporated herein.
********************************

ID OCCUPANCY ADDRESS ZONE DATE
HAM225 Starlight School 225 HAMMER DR 2 01/06/2021
EBE250 Watsonville High School 250 E BEACH ST 1 01/06/2021 MAI1433 Sukho Thai Cuisine 1433 MAIN ST 1 01/14/2021
MAI458 La Perla Del Pacifico (Marisco's) 458 MAIN ST 1 01/14/2021 MAI412 Kings Garden Cantonese Cuisine 412 MAIN ST 1 01/14/2021 MAI972 The Fish House 972 MAIN ST 1 01/14/2021
HAR500 Pajaro Valley High School 500 HARKINS SLOUGH RD 1 01/15/2021 ROD550 Radcliff School 550 RODRIGUEZ ST 1 01/15/2021
WRI50 Don Rafa's 50 W RIVERSIDE DR 1 01/16/2021
AIR301 Fidels Mexican Foods 301 AIRPORT BLVD 2 01/18/2021 AIR99B Rachel's Home 99 AIRPORT BLVD #B 2 01/18/2021
WLA18 Community Bridges WIC - Program 18 (ABL) W LAKE AVE 1 01/21/2021 SGR550 Palo Alto Medical Foundation 550 s GREEN VALLEY RD 2 01/21/2021 WBE1620 Rodeway Inn 1620 W BEACH ST 1 01/22/2021
WBE435 Beach Street Cafe 435 W Beach ST 1 01/22/2021
ROD410 Los Compadres 410 RODRIGUEZ ST 1 01/25/2021
ROD329 Aldamas Meat Market 329 RODRIGUEZ ST 1 01/25/2021 WBE18 County of Santa Cruz Human Services 18 w BEACH ST 1 01/25/2021 EBE250 Watsonville High School 250 E BEACH ST 1 01/26/2021 ATK124 Portuguese Hall 124 ATKINSON LN 2 01/27/2021
ART440 Cesar Chavez Middle School 440 ARTHUR RD 2 01/28/2021 ELA716 La Santa Cruz Bakery 716 E LAKE AVE 1 02/04/2021 ELA952 Sushi Qu 952 E LAKE AVE 1 02/04/2021
ELA1101 Real Colima II 1101 E LAKE AVE 1 02/04/2021
ELA320-328 Apartment Complex 320 E LAKE AVE #328 1 02/06/2021 ELA362 Watsonville Royal Apartments 362 E LAKE AVE 1 02/06/2021 GRE294 Pajaro Valley Unified School District 294 GREEN VALLEY RD 2 02/09/2021 ELA312 Apartments 312 E LAKE AVE 1 02/09/2021
LAK309 Apartment Complex 309 E LAKE AVE 1 02/09/2021
PAL515 Mintie White School 515 PALM AVE 1 02/10/2021
LIN642 Apartment Complex 642 LINCOLN ST 1 02/13/2021
MEN1140 Ann Soldo Elementary School 1140 MENASCO DR 1 02/17/2021 LIN1200 Lincoln Square 1200 LINCOLN ST 1 02/17/2021
BRE133 Notre Dame School 133 BRENNAN ST 1 02/17/2021
MEN26 La Rosa 26 MENKER ST 1 02/19/2021
WEST120 Golds Gym 120 WESTRIDGE DR 2 02/19/2021
LAN131 Pacific Terrace apartments 131 LANDIS AVE 2 02/19/2021 LAS31 Garden Hill Apt. 31 LASSEN WAY 2 02/19/2021
HAM225 Starlight School 225 HAMMER DR 2 02/24/2021
Satellite Healthcare Systems 5 Nielson ST 02/25/2021
BRE207,209 Alice Byer Apartments 207209 BRENNAN ST 1 03/04/2021 TUT601 MOUNTAIN VIEW APPARTMENTS 601 TUTTLE AVE 1 03/04/2021 HUS296 Apartment Complex 296 HUSHBECK AVE 1 03/04/2021
TUT610 Keystone Apartments 610 TUTTLE AVE 1 03/04/2021
BRI427 Watsonville Buddhist Apartment 427 BRIDGE ST 1 03/04/2021 EFR127 Casa Pajaro Apartments 127 E FRONT ST 1 03/05/2021 Inspection Type: Fire & Life Safety
Watsonville Fire Dept.

Watsonville, CA
This report was generated on 6/3/2022 12:35:06 PM
Completed Inspections for Inspection Type for Date Range for Zone Locked inspections only.
emergencyreporting.com
Doc Id: 1135
Page # 1 of 5 Page 203 of 356

ID OCCUPANCY ADDRESS ZONE DATE
Inspection Type: Fire & Life Safety
Watsonville Fire Dept.

Watsonville, CA
This report was generated on 6/3/2022 12:35:06 PM
Completed Inspections for Inspection Type for Date Range for Zone CLI301 PENN-CLIFF APARTMENTS 301 CLIFFORD AVE 2 03/05/2021 BEC492 Tierra Linda Apartments 492 BECK ST 1 03/06/2021 BLA615 Watsonville Royal Apartments 615 BLACKBURN ST 1 03/06/2021 HAR165 New School 165 HARKINS SLOUGH RD 1 03/08/2021
SEN100 Apartment Complex 100 SENECA CT 1 03/08/2021
SEC28 Craft Bakery & Eatery 28 SECOND ST #100 1 03/09/2021 ROD788 The Pines Apartments 788 RODRIGUEZ ST 1 03/09/2021 MAD19 Allen & Lamb Apartments 19 MADISON ST 1 03/09/2021 FOR241 Apartment Complex 241 FORD ST 1 03/09/2021
WAL300 Mi Rancho 300 WALKER ST 1 03/10/2021
JEF37 Apartment Complex 37 JEFFERSON ST 2 03/16/2021
RIV139141 Apartment Complex 139-141 Riverside DR 03/16/2021 ROD774 Apartment Complex 774 RODRIGUEZ ST 1 03/16/2021
ROD742 Apartment Complex 742 RODRIGUEZ ST 1 03/16/2021
JEF105 Apartments 105 JEFFERSON ST 1 03/16/2021
ROG430 Apartment Complex 430 ROGGE ST 1 03/17/2021
HER130 Rolling Hills Middle School 130 HERMAN AVE 2 03/17/2021 ROD762 Apartments 762 RODRIGUEZ ST 1 03/17/2021
MAI21 Apple City Apartments 21 MAIN ST 1 03/19/2021
MCK602 Apartments 602 Mckenzie AVE 03/19/2021
FOR221 Apartments 221-223 FORD ST #223 1 03/19/2021
FOR30 Cabrillo Arms Apartments 30 FORD ST 1 03/19/2021
FOR233 Apartments 233 FORD ST 1 03/19/2021
MAI1437 Pizza Lovers Inc 1437 MAIN ST 2 03/20/2021
JEF41 Apartment complex 41 JEFFERSON ST 2 03/21/2021
R-2 Hyde Park Apartments 108 HYDE ST 1 03/23/2021
HOL50 Evergreen Apts 50 HOLLOWVIEW LN 1 03/23/2021
AIR80206 Oasis 80 AIRPORT BLVD 2 03/24/2021
MCK610 Apartment Complex 610-660 MCKENZIE AVE 1 03/25/2021 PEN336 Apartment Complex 336 Pennsylvania DR 03/25/2021 PENN330 Apartment Complex 330 PENNSYLVANIA DR 1 03/25/2021 QUI122 Meadowview Apartments 122 QUIET MEADOW DR 2 03/25/2021 PEN318 Apartment Complex 318 PENNSYLVANIA DR 1 03/26/2021 PENN304 Apartment Complex 304 PENNSYLVANIA DR 1 03/26/2021 SEC142 La Rosa Bakery and Market 142 SECOND ST 1 03/28/2021 FRE930 Apartment Complex 930 FREEDOM BLVD 1 03/31/2021
FRE1007 Portola Heights 1007 FREEDOM BLVD 1 04/02/2021
WRI260 Ceiba College Prep School 260 w RIVERSIDE DR 1 04/06/2021 FRE740 Best Western Motel 740 FREEDOM BLVD 1 04/13/2021 FRE925 Valley Heights Apartments 925 FREEDOM BLVD 1 04/14/2021 PEN290 Penn Nova Apartments 290 PENNSYLVANIA DR 1 04/14/2021 PEN320 Starlite Apartments 320 PENNSYLVANIA DR 2 04/14/2021 Apartment Complex 324 Pennsylvania DR 04/14/2021
PEN344 Penn-Star Apartments 344 PENNSYLVANIA DR 1 04/14/2021 PEN480 Penn-Cliff Apartments 480 PENNSYLVANIA DR 1 04/14/2021 PAJ2030 Paloma Del Mar 2030 PAJARO LN 2 04/15/2021
Locked inspections only.
emergencyreporting.com
Doc Id: 1135
Page # 2 of 5 Page 204 of 356

ID OCCUPANCY ADDRESS ZONE DATE
Inspection Type: Fire & Life Safety
Watsonville Fire Dept.

Watsonville, CA
This report was generated on 6/3/2022 12:35:06 PM
Completed Inspections for Inspection Type for Date Range for Zone ORT34 La Posada 34 ORTEGA DR 1 04/18/2021
WES225 Encompass (Community Services) 225 WESTRIDGE DR 2 04/19/2021 NIE45S Salud Para La Gente (WCH) 45 NIELSEN ST 2 04/21/2021 ROS220 Sunny Meadows Apartments 220 ROSS AVE 2 04/26/2021 TUT611 Village View Apartments 611 TUTTLE AVE 1 04/28/2021 RIV139141 Apartment Complex 139-141 Riverside DR 04/29/2021 FRE1700 Jack In the Box #3487 1700 FREEDOM BLVD 2 04/30/2021 MAI508 Jefsen Apartments 508 MAIN ST 1 05/14/2021
MON179 Apartment Complex 179 MONTEBELLO DR 2 05/15/2021 LAW175 Trinity Lutheran Church 175 LAWRENCE AVE 2 05/17/2021 ELA301 Ms. Donuts 301 E LAKE AVE 1 05/18/2021
DOL25 Village Garden Apartments 25 DOLORES AVE 1 05/19/2021 DOL17 Village Garden Apartments 17 DOLORES AVE 1 05/19/2021 ELA240 Pajaro Valley Prevention and Student 240 E LAKE AVE 1 05/19/2021 ELA1391 Guadalajara Bakery 139 e LAKE AVE 1 05/19/2021
PAC201A Pacifica Apartments 201 PACIFICA BLVD 1 05/20/2021 AUT525 Watsonville Post Acute Center 525 AUTO CENTER DR 1 05/20/2021 AUT535 Watsonville Nursing Center 535 AUTO CENTER DR 1 05/20/2021 MAI1931 Kaiser Permanente 1931 MAIN ST 2 05/25/2021
SUD110 APARTMENTS 110 SUDDEN ST 1 05/27/2021
CEN520 Apartment Units 520 CENTER ST 1 05/27/2021
EBE410A Apartment Units 410 e BEACH ST 1 05/27/2021
PEN95 Pennbrook Apartments 95 PENNSYLVANIA DR 1 05/27/2021 SGR1085 Jack In The Box 1085 S GREEN VALLEY RD 2 05/27/2021 SGR1105 Applebee's 1105 S GREEN VALLEY RD 2 05/27/2021
SUD34 Apartment Complex 34 SUDDEN ST 1 05/27/2021
PAC212 Vista Del Mar Condo's 212 PACIFICA BLVD 1 06/01/2021 ELA301 Ms. Donuts 301 E LAKE AVE 1 06/01/2021
FRE1459 Panaderia #2 1459 FREEDOM BLVD 2 06/05/2021
CLI320-326
MON179-195 Apartment Complex 320 CLIFFORD AVE 2 06/05/2021 FRE2109 9 units 2109 FREEDOM BLVD 1 06/10/2021
MAI1459 McDonald's Restaurant 1459 MAIN ST 2 06/10/2021 ELA601 Paulino's Bakery 601 E LAKE AVE 1 06/10/2021
FRE1430A Childrens Medical Services 1430 FREEDOM BLVD 1 06/11/2021 Pajaro Valley Medical Clinic 65 Nielson ST #104 06/14/2021 PEN60 Pacific Coast Therapists 60 PENNY LN 2 06/14/2021 MAI1270 Donut King 1270 MAIN ST 2 06/16/2021
GRE1 E's Ranch Milk 1 GREEN VALLEY RD 1 06/16/2021
ELA255 Parent Center 255 E LAKE AVE 1 06/21/2021
ELA241 Youth Services 241 e LAKE AVE 1 07/07/2021
ELA245 Youth Services 245 e LAKE AVE 1 07/07/2021
WAL18 valley sheet metal 18 WALKER ST 1 07/08/2021
FRE1459 Panaderia #2 1459 FREEDOM BLVD 2 07/12/2021
FRE1480 Wendys 1480 FREEDOM BLVD A2 07/15/2021
ELA1105 East Lake Apartments 1105 E LAKE AVE 1 07/15/2021 Locked inspections only.
emergencyreporting.com
Doc Id: 1135
Page # 3 of 5 Page 205 of 356

ID OCCUPANCY ADDRESS ZONE DATE
Inspection Type: Fire & Life Safety
Watsonville Fire Dept.

Watsonville, CA
This report was generated on 6/3/2022 12:35:06 PM
Completed Inspections for Inspection Type for Date Range for Zone Green Valley Cinema 1125 Green Valley RD 07/18/2021
ELA1012 Hong Kong Garden 1012 E LAKE AVE 1 07/18/2021
ELA7341 Cafe Ella 734 E LAKE AVE 1 07/19/2021
MAI1116 El Navegante Marisco's 1116 MAIN ST 1 07/20/2021 MAD101 First Baptist Church 101 Madison ST 07/22/2021
CLI375 Madonna Vista Apartments 375 CLIFFORD AVE 2 07/23/2021 FRE1467 Fat Boy Burger 1467 FREEDOM BLVD 2 07/23/2021
EAS321 Encompass 321 East Beach ST 07/23/2021
BLA49 Meadows Mobile Manor 49 BLANCA LN 2 07/26/2021
SIL125 Motel 6 125 SILVER LEAF DR 2 07/26/2021
MAR120 Apartments 120 MARTINELLI ST 1 07/29/2021
Tacos El Tigre (Food Truck) 602 E Lake AVE #(Fiesta Liquor) 08/03/2021 FRE2022 Donut Basket 2022 FREEDOM BLVD 2 08/13/2021
MAD1080 Crestview Garden Apts 1080 Madison ST 08/13/2021 CRE130 Crestview Garden Apts 130 CRESTVIEW CT 2 08/13/2021 HER140 Duncan Holbert School 140 HERMAN AVE 2 08/13/2021 UNI53 Sanchez Apartments 53 UNION ST 1 08/13/2021
CAR14 Hope Services 14 CARR ST 1 08/13/2021
FRE1998 El Michoacano 1998 FREEDOM BLVD 2 08/15/2021
ELA1036 Chilies Pizza 1036 E LAKE AVE 1 08/18/2021
ELA1040 Carmona's 1040 E LAKE AVE 1 08/18/2021
SGR1061 Corralitos Pizza 1061 S GREEN VALLEY RD 2 08/18/2021 SGR1074 Erik's Deli 1074 S GREEN VALLEY RD 2 08/18/2021 MAI353 Taco Pacheco 353 MAIN ST 1 08/20/2021
ELA106 Taqueria Tecoman 106 e LAKE AVE 1 08/20/2021
EBE15102 Taqueria La Fuente 15 e BEACH ST 1 08/20/2021
FRE1726 Taqueria Mi Tierra II 1726 FREEDOM BLVD 2 08/20/2021 NIE65145 Sanderling Dialysis of Watsonville 65 Nielson ST 08/20/2021 BRE300 Stonecreek Apartments 300 BREE LN 1 08/20/2021
FRE1417 Mountain Mikes Pizza 1417 FREEDOM BLVD 2 08/20/2021 FRE1598 McDonald's 1598 FREEDOM BLVD 2 08/20/2021
GRE14 Taco Bell (# 30764) 14 GREEN VALLEY RD 2 08/21/2021 OHL20202 Panda Express 20 OHLONE PKY 1 08/21/2021
AUT590 Popeye's 590 AUTO CENTER DR #1A 2 08/26/2021
MAI1975 Round Table Pizza 1975 MAIN ST 2 08/26/2021
FRE1047 Olivia's Cafe y Restaurant 1047 FREEDOM BLVD 1 08/26/2021 ELA205 Oriental Store 205 E LAKE AVE 1 08/27/2021
WAL300 Mi Rancho 300 WALKER ST 1 08/27/2021
SUD18B La Perrona (Food Truck 18 Sudden ST #B 08/28/2021 MAI448 Radich Apartments 448 MAIN ST 1 08/28/2021
MIL161 Encompass Community Services 161 MILES LN 1 08/28/2021 BLA150 Japanese American Citizens League
(Watsonville Taiko Grp) 150 BLACKBURN ST 1 08/28/2021
MIL150 Hagerty Apartments 150 MILES LN 1 08/28/2021
MAI512 Amazon Restaurant Grp dba Domino's
Pizza 512 MAIN ST 1 08/31/2021
Locked inspections only.
emergencyreporting.com
Doc Id: 1135
Page # 4 of 5 Page 206 of 356

ID OCCUPANCY ADDRESS ZONE DATE
Inspection Type: Fire & Life Safety
Watsonville Fire Dept.

Watsonville, CA
This report was generated on 6/3/2022 12:35:06 PM
Completed Inspections for Inspection Type for Date Range for Zone FRE1477 Mana Bakery 1477 FREEDOM BLVD 2 09/06/2021
FRE1980 Happy Garden Restaurant 1980 FREEDOM BLVD 2 09/08/2021 WBE117 Stag Hotel For Men 117 w BEACH ST 1 09/08/2021
GRE11 Farm House 11 GREEN VALLEY RD 2 09/08/2021
FRE1403 Burger King 1403 FREEDOM BLVD 2 09/10/2021
FRE1437 Cardenas 1437 FREEDOM BLVD 2 09/10/2021
ALT95 First Lutheran Church 95 ALTA VISTA AVE 2 09/10/2021 WLA129 D'la Colmena Bakery 129 W LAKE AVE 1 09/10/2021
MAD1355 Independence Square 1355 MADISON ST 2 09/11/2021 MAI1984 Hugo's Pizza 1984 MAIN ST 2 09/11/2021
NIE75 Watsonville Community Hosp. 75 Nielson ST 2 09/14/2021 ELA411 Pajaro Valley Prevention 411 e LAKE AVE 1 09/17/2021 GRE11 Farm House 11 GREEN VALLEY RD 2 09/24/2021
MAI1212 Mariscos 1212 MAIN ST 1 10/05/2021
FRE2026 Straw Hat Pizza 2026 FREEDOM BLVD 2 10/08/2021
MAI1435 Sukhothai Restaurant 1435 MAIN ST 2 10/08/2021
HAR500S Salud Para La Gente (P.V.High) 500 HARKINS SLOUGH RD 2 10/08/2021 WLA15 Housing for Independent People 15 W LAKE AVE 1 10/13/2021 MAI1855 Holiday Inn Express 1855 MAIN ST 1 10/13/2021
ELA952 Sushi Qu 952 E LAKE AVE 1 10/13/2021
MAI972 The Fish House 972 MAIN ST 1 10/14/2021
WBE435 Beach Street Cafe 435 W Beach ST 1 10/20/2021
ALT125 HA Hyde School 125 ALTA VISTA AVE 2 10/27/2021
ROD410 Los Compadres 410 RODRIGUEZ ST 1 11/04/2021
FRE1457 Hong Kong Express 1457 FREEDOM BLVD 2 11/09/2021 The Terrace 445 Main ST 11/15/2021
ART360A Arthur Road Baptist Church 360 ARTHUR RD 1 11/15/2021 MON311 Montecito Manor 311 MONTECITO AVE 1 11/15/2021
AIR99B Rachel's Home 99 AIRPORT BLVD #B 2 11/18/2021
UNI318 Watsonville Cabrillo College Center 318 UNION ST 1 11/19/2021 MAI1866 Golden China Restaurant 1866 MAIN ST 2 11/26/2021 MAI458 La Perla Del Pacifico (Marisco's) 458 MAIN ST 1 12/02/2021 ALT125 HA Hyde School 125 ALTA VISTA AVE 2 12/02/2021
EBE103 Plaza Hotel 103 E BEACH ST 1 12/09/2021
EBE204 Salud Para la Gente 204 E BEACH ST 1 12/11/2021
ELA1101 Real Colima II 1101 E LAKE AVE 1 12/11/2021
ELM220 Linscott School 220 ELM ST 1 12/15/2021
HAR165 New School 165 HARKINS SLOUGH RD 1 12/17/2021
ELA370 Trejo's Carnitas Restaurant 370 E LAKE AVE 1 12/18/2021 WBE30 Wall Street Inn 30 W BEACH ST 1 12/18/2021
Locked inspections only.
emergencyreporting.com
Doc Id: 1135
Page # 5 of 5 Page 207 of 356

6/23/2022 9:03:47 PM
C:\Program Files\eSCRIBE\TEMP\2134487779\2134487779,,,Municipal Election for Council Districts November 8, 2022 .docx Agenda Report
MEETING DATE: Tuesday, June 28, 2022
TO: City Council
FROM: CITY CLERK ORTIZ
SUBJECT: CALLING AND ORDERING MUNICIPAL GENERAL ELECTION FOR NOVEMBER 8, 2022
STATEMENT OF ISSUES:

The City will be holding its General Municipal Election on November 8, 2022, to fill four City Council vacancies. In order to consolidate with the County of Santa Cruz to hold said Election, the City Council must approve a series of resolutions.

RECOMMENDED ACTION:

It is recommended that the City Council adopt the following resolutions:

1. Resolution Calling a General Municipal Election in the City of Watsonville for District Numbers 3, 4, 5, & 7 and Directing the Publication of Notice of a General Municipal Election in the City of Watsonville on November 8, 2022

2. Resolution Ordering an Election; Requesting the County of Santa Cruz to Conduct the Election, & Requesting the Consolidation of the General Statewide & Municipal Election in the City of Watsonville on November 8, 2022

3. Resolution Adopting Policies in Regard to the Candidate’s Statements for the General Municipal Election to be held on November 8, 2022
DISCUSSION:

Section 1300 of the Charter of the City Watsonville specifies that “A General Municipal Election shall be held on the first Tuesday following the first Monday in November of each evennumbered year.” In addition, Section 403 of the Charter of the City of Watsonville provides that a person shall be eligible to be nominated for City Council, only if thirty (30) days preceding the opening date for the filing of nomination papers is a resident and a registered qualified voter of this City and the District which the person seeks to represent. Pursuant to Elections Code 10220, candidates for elective City office may be nominated during a nomination period specified by State law, which this year is July 18 through August 12, 2022.

California Elections Code section 10403 requires that the City Council adopt a resolution calling for a general municipal election to fill elective seats. In addition, State law requires that the Council adopt a resolution requesting the services of the County of Santa Cruz to conduct the election and consolidate it with the statewide General Election.

6/23/2022 9:03:47 PM
C:\Program Files\eSCRIBE\TEMP\2134487779\2134487779,,,Municipal Election for Council Districts November 8, 2022 .docx Section 13307 of the Elections Code provides certain guidelines for Candidate Statements for persons who run for elected office; however, the City Council may adopt its own policies regarding Candidate Statements.

The County Clerk and City of Watsonville staff will work collaboratively to provide necessary notice of the election and to inform the public of the different options available for them to exercise their right to vote. Staff will also make sure that all health protocols are in place to make sure that voters feel safe walking into any voting center.

STRATEGIC PLAN:

The Election will allow voters to select their Council representative supporting Strategic Priority 5-Community Engagement & Well-Being and ensuring Priority 7 - Efficient and High Performing Government.

FINANCIAL IMPACT:

The County of Santa Cruz Elections Department estimates the cost between $2.50 to $4.00 per voter. The City of Watsonville currently has a total of 13,814 registered voters in Districts 3, 4, 5 and 7. Therefore, the cost could range from $34,535 to $55,256.

ALTERNATIVE ACTION:

None.

1 Reso No. (CM)
Meeting Date: 062822
RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE CALLING A GENERAL MUNICIPAL ELECTION IN THE CITY OF WATSONVILLE FOR DISTRICT NUMBERS 3, 4, 5, AND 7 AND

DIRECTING THE PUBLICATION OF NOTICE OF A GENERAL

MUNICIPAL ELECTION IN THE CITY OF WATSONVILLE ON
NOVEMBER 8, 2022
WHEREAS, Section 1300 of the Charter of the City of Watsonville requires that a General Municipal Election be held on the first Tuesday following the first Monday in November of each even numbered year for the election of officers; and WHEREAS, the provision of the Election Code and the Government Code of the State of California require the publication of a Notice of Election in a newspaper of general circulation which notice shall specify the date of election.

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

1. That a General Municipal Election is hereby called to be held in the City of Watsonville on Tuesday, November 8, 2022, for the purpose of electing Council Members from Districts 3, 4, 5, and 7 each for four (4) year terms.

2. That the City Clerk is hereby directed to publish the Notice of Election in accordance with the requirements of the law to provide for the election of four (4) Council Members from Districts 3, 4, 5, and 7 each for four (4) year terms; and election to be held on November 8, 2022, with the polls open between the hours of 7:00 A.M. and 8:00 P.M. ********************************

1 Reso No. (CM)
Meeting Date: 062822
RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE ORDERING AN ELECTION; REQUESTING THE

COUNTY OF SANTA CRUZ TO CONDUCT THE ELECTION, AND

REQUESTING THE CONSOLIDATION OF THE GENERAL STATEWIDE

AND MUNICIPAL ELECTION IN THE CITY OF WATSONVILLE ON
NOVEMBER 8, 2022
WHEREAS, Section 1300 of the Charter of the City of Watsonville requires that a General Municipal Election be held on the first Tuesday following the first Monday in November of each even numbered year for the election of officers; and WHEREAS, Section 401 of the Charter of the City of Watsonville establishes four year terms limits for all members of the City Council;
WHEREAS, the Council Members from City Council Districts three, four, five, and seven have each completed full four year terms, necessitating an election to fill those City Council seats for full terms of four years; and
WHEREAS, pursuant to the Elections Code Section 10002, the City Council of the City of Watsonville may by resolution request the Board of Supervisors of the County of Santa Cruz to permit the County Clerk to render specified services to the City of Watsonville relating to the conduct of an election; and WHEREAS, subject to approval of the Board of Supervisors, these services shall be provided by the County Clerk; and
WHEREAS, the City Council of the City of Watsonville shall by resolution specify the services requested; and
WHEREAS, pursuant to Elections Code Section 10002, unless other arrangements satisfactory to the County have been made, the City shall reimburse the County in full for the services performed upon presentation of a bill to the City; and

2 Reso No. (CM)
Meeting Date: 062822
WHEREAS, pursuant to the Election Code Section 10400, whenever two or more elections, including bond elections, of the City, are called to be held on the same day, in the same territory, or in territory that is in part the same, they may be consolidated upon the order of the City Council calling the elections; and WHEREAS, pursuant to Elections Code 10400, such election for cities may be either completely or partially consolidated; and
WHEREAS, pursuant to Elections Code Section 10403, whenever an election called by the City for the submission of any question, proposition, or office to be filled is to be consolidated with a statewide election, and the question, proposition, or office to be filled is to appear upon the same ballot as that provided for that statewide election, the City shall at least eighty-eight (88) days prior to the date of the election, file with the Board of Supervisors, and a copy with the elections official, a resolution of the City Council requesting the consolidation, and setting forth the exact form of any question, proposition, or office to be voted upon at the election, as it is to appear on the ballot, acknowledging that the consolidation election will be held and conducted in the manner prescribed in Section 10418. Upon such request, the Board of Supervisors may order the consolidation; and
WHEREAS, pursuant to Elections Code Section 10418, if consolidated, the consolidated election shall be held and conducted, election boards appointed, voting precincts designated, candidates nominated, ballots printed, polls opened and closed, voter challenges determined, ballots counted and returned, returns canvassed, results declared, certificates of election issued, recounts conducted, election contests presented, and all other proceedings incidental to and connected with the election shall be regulated

3 Reso No. (CM)
Meeting Date: 062822
and done in accordance with the provisions of law regulating the statewide or special election, or the election held pursuant to Section 1302 or 1303, as applicable; and WHEREAS, the resolution requesting the consolidation shall be adopted and filed at the same time as the adoption of the ordinance, resolution, or order calling the election; and
WHEREAS, various district, county, state and other political subdivision elections may be or have been called to be held on November 8, 2022.

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

1. That the City Council hereby orders an election be called and consolidated with any and all elections also called to be held on November 8, 2022, insofar as said elections are to be held in the same territory or in territory that is in part the same as the territory of the City of Watsonville and requests that the Board of Supervisors of the County of Santa Cruz order such consolidation under Elections Code Sections 10401, 10403, and 10418.

2. That the City Council hereby requests the Board of Supervisors of the County of Santa Cruz to permit the Santa Cruz County Elections Department to provide any and all services necessary for conducting the election and agrees to pay for said services.

3. That the Santa Cruz County Elections Department conduct the election for the following offices on the November 8, 2022, ballot:
 One (1) Council Member from District 3, for a full term of four (4) years;  One (1) Council Member from District 4, for a full term of four (4) years;  One (1) Council Member from District 5, for a full term of four (4) years;

4 Reso No. (CM)
Meeting Date: 062822
 One Council Member from District 7, for a full term of four (4) years.

4. The City Council of the City of Watsonville acknowledges that the consolidated election will be held and conducted in the manner prescribed by Elections Code section 10418.

5. That the City Clerk is hereby authorized and directed to file a certified copy of this Resolution with the Board of Supervisors and the County Clerk of Santa Cruz County.

6. Pursuant to Watsonville City Charter Section 402 – Term of Office, resolution of ties shall be determined by lot.

7. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by State law for holding municipal elections. ********************************

1 Reso No. (CM)
C:\Program Files\eSCRIBE\TEMP\2134563929\2134563929,,,Resolution - Adopting Policies for General Municipal Election .docx bvf 6/23/2022 9:04:00 PM
RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE ADOPTING POLICIES IN REGARD TO THE
CANDIDATE’S STATEMENTS FOR THE GENERAL MUNICIPAL
ELECTION TO BE HELD ON NOVEMBER 8, 2022
WHEREAS, Section 13307 of the Elections Code of the State of California provides for Candidate’s Statements for persons who run for office of City Council Member for the City of Watsonville.

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

1. That the cost of printing Candidate’s Statements for inclusion with the sample ballot in the English language, and in the Spanish language if requested by the candidate, shall be paid in advance by each candidate with a check made payable to the County Clerk of Santa Cruz County.

2. That the Candidate’s Statement shall not exceed two hundred (200) words.

3. That candidates shall not be permitted to submit additional materials to be sent to the voter with the sample ballot.

4. That the City Clerk is directed to give a copy of this Resolution to each candidate or his representative.
********************************

6/23/2022 3:20:13 PM6/23/2022 9:24:05 AM6/22/2022 10:11:38 PM6/22/2022 10:11:30 PM6/22/2022 11:52:41 AM6/17/2022 2:34:11 PM C:\Program Files\eSCRIBE\TEMP\15201119013\15201119013,,,Report - LLMADS for FY 2022-2023 .docxhttps://cityofwatsonville.escribemeetings.com/Reports/RESOLUTION CONFIRMING DIAGRAMS, ASSESSMENTS, AND LEVYING ASSESSMENTS FOR LLMADS FISCAL YEAR 2021-22.docx

Agenda Report
MEETING DATE: Tuesday, June 28, 2022
TO: City Council
FROM: PARKS & COMMUNITY SERVICES DIRECTOR CALUBAQUIB

MARIA ESTHER RODRIGUEZ, ASSISTANT PUBLIC WORKS AND

UTILITIES DIRECTOR
SUBJECT: RESOLUTIONS CONSIDERING CONFIRMATION OF DIAGRAMS,

ASSESSMENTS, AND LEVYING ASSESSMENTS FOR FISCAL
YEAR 2022-2023 FOR BAY BREEZE LLMAD NO. PK-03-02, VISTA MONTANA LLMAD PK-03-03, AND GONZALES STREET
ALLEYWAY LLMAD NO. PK-94-1
STATEMENT OF ISSUES:

At the May 24, 2022 City Council meeting, the City Council accepted the Engineer’s Reports and set the public hearing to June 28, 2022.The Engineer’s Reports are on file in the City Clerk’s office.

RECOMMENDED ACTION:

Staff recommends that the City Council adopt a resolutions confirming the diagrams, assessments, and levying the assessments for Fiscal Year 2022-2023 for the Bay Breeze Subdivision Landscaping and Lighting Maintenance Assessment District No. PK-03-02, Vista Montaña Subdivision Landscaping and Lighting Maintenance Assessment District (LLMAD) No. PK-03-03, and the Gonzales Street Alley Landscaping and Lighting District (Gonzales LLMAD) No. PK-94-1.

DISCUSSION:

Bay Breeze LLMAD
The Bay Breeze Subdivision is located at the southwest corner of Ohlone Parkway and Harkins Slough Road. The Bay Breeze Landscaping and Lighting Maintenance Assessment District (LLMAD) program includes the following:

1. Maintenance and replacement of the street trees within the subdivision.

2. Operation, maintenance, repair, and replacement of the detention basins and the detention basin access roads within the subdivision.

3. Operation, maintenance, repair, and replacement of the perimeter fencing around the entire subdivision.

4. Maintenance and replacement of the plantings done as part of the wetland mitigation plan.

6/23/2022 3:20:13 PM6/23/2022 9:24:05 AM6/22/2022 10:11:38 PM6/22/2022 10:11:30 PM6/22/2022 11:52:41 AM6/17/2022 2:34:11 PM C:\Program Files\eSCRIBE\TEMP\15201119013\15201119013,,,Report - LLMADS for FY 2022-2023 .docxhttps://cityofwatsonville.escribemeetings.com/Reports/RESOLUTION CONFIRMING DIAGRAMS, ASSESSMENTS, AND LEVYING ASSESSMENTS FOR LLMADS FISCAL YEAR 2021-22.docx

5. Maintenance of the environmental management parcel created within the subdivision.

6. Maintenance, repair, and replacement of the landscaping within the public right-of-way abutting and within the subdivision, including the Ohlone Parkway medians.

7. Operation, maintenance, repair and replacement of the sewer pump station.

8. Maintenance of the graffiti coatings on the public exposure of the perimeter walls along the District boundaries.

The Bay Breeze Subdivision LLMAD is comprised of 114 single family residential parcels.

The annual costs for the operation, maintenance, and servicing of landscaping and street lighting improvements is apportioned to each parcel within the District in proportion to the EDU’s (Equivalent Dwelling Unit) assigned to the parcel as a percentage of the total number of EDU’s assigned to all parcels within the District.

Vista Montaña LLMAD
The Vista Montaña Subdivision is located off of East Lake Avenue and adjacent to Ann Soldo Elementary School and the Bay Village subdivision. The Vista Montaña Subdivision Landscaping and Lighting Maintenance Assessment District includes the following:

1. Regular maintenance, repair, and replacement of all facilities within the agricultural buffer area (except the street and utilities) which includes but is not limited to, the landscaping, signage, perimeter wall, retaining walls, pedestrian path and erosion control plantings within or adjacent to the detention basins and drainage swale.

2. Operation, maintenance, repairs, and replacement of and power for the street lighting within the District.

3. Regular maintenance, repair, and replacement of the parkway strip and street trees on Cipres, Roble, Arce, Manzana, Cirvelo, Cereze, and Secoya Streets and Vista Montaña, Franich, and Marcela Drives.

4. Operation, maintenance, repair, and replacement of the storm drain detention basins, drainage channel, drainage facilities, and erosion control measurers within the agricultural buffer, including the storm drain culvert crossing Highway 152 and the inlet structure on the west side of Highway 152.

5. Regular maintenance, repair, and replacement of the landscaping and perimeter wall along the Highway 152 frontage adjacent to the District boundaries, including graffiti removal.

6. Regular maintenance, repair, and replacement of the pedestrian/bike path connecting Secoya Street and McKenzie Avenue, adjacent to the District boundaries.

7. Regular maintenance, repair, and replacement of pedestrian pathways located at the end of Roble Street, at the end of Cirvelo Street, within the agricultural buffer area and parallel to Bridge Street, on the south side of the town homes parallel to Franich Drive and on the west side of the town homes parallel to Marcela Drive.

The Vista Montaña Subdivision LLMAD is comprised of two Zones: A and B. Zone A benefits all parcels within the District which includes, for example, the street lighting installed along Highway 152, the landscape improvements along Highway 152 and the agricultural buffer area. Zone B benefits those parcels within the single family residential area primarily and

6/23/2022 3:20:13 PM6/23/2022 9:24:05 AM6/22/2022 10:11:38 PM6/22/2022 10:11:30 PM6/22/2022 11:52:41 AM6/17/2022 2:34:11 PM C:\Program Files\eSCRIBE\TEMP\15201119013\15201119013,,,Report - LLMADS for FY 2022-2023 .docxhttps://cityofwatsonville.escribemeetings.com/Reports/RESOLUTION CONFIRMING DIAGRAMS, ASSESSMENTS, AND LEVYING ASSESSMENTS FOR LLMADS FISCAL YEAR 2021-22.docx
includes the maintenance of the street end caps, the park strips and street lighting.

The Assessment District is based on a total number of Equivalent Dwelling Units (EDU’s) and maximum annual assessments are included in the Engineer’s Report.

Fees for Fiscal Year 2020-2021 were not increased from the prior year due to concerns from some property owners regarding the quality of service to the landscape strip in front of their homes and who expressed that they did not want an increase to their assessments.

Since then, staff has held several community meetings with district property owners to present the details of the scope of district services the City provides and the associated budget that limits the City’s work. Staff also provided details regarding the LLMAD’s reserve account, which is currently well below levels needed to afford inevitable repairs as the development nears the 20-year mark. Staff has continued to work with the City Attorney’s Office to develop options to maintain the District within its budget, while also increasing reserves needed for future replacement.

Staff met again with homeowners on May 31, 2022 to discuss options that include:

1.) Maintain the status quo fees, with annual CPI increases, which would result in a reduction of services due to the ever increasing cost of maintenance;

2.) Conduct a new engineer’s study to re-evaluate the cost of maintenance which would likely result in an increase in service quality at an increased cost.

Following this meeting, the City will move forward with issuing a ballot to determine whether to hire an engineer to complete a new study and look at re-apportioning the assessments.

The homeowners will be under no obligation to adopt any increase in recommended assessments that result from the study.

A simple majority would need to approve the hiring of a consultant engineer. Should an engineer be hired to complete a new study and recommend the assessments and level of service be increased, a formal ballot would be issued to the property owners so they could vote on it, as required by regulation. Should an engineer be hired, the process to study a reapportionment of assessments while engaging the community is expected to take six months to complete and would be an issue brought to the Council in Fiscal Year 2022-2023.

At this time, the City is recommending that Council accept the annual engineer’s report, which recommends a 4% CPI increase for 2022-23 in order to maintain the status quo, while the community considers how they wish to move forward long-term.

Gonzales Street Alleyway LLMAD
The Gonzales Street Alleyway LLMAD was established in order to assist the residents bordering the alleyway and adjoining small parcel to cooperatively maintain this parcel that is now owned by the City but benefits its neighbors. The annual cost of $600 to maintain the

6/23/2022 3:20:13 PM6/23/2022 9:24:05 AM6/22/2022 10:11:38 PM6/22/2022 10:11:30 PM6/22/2022 11:52:41 AM6/17/2022 2:34:11 PM C:\Program Files\eSCRIBE\TEMP\15201119013\15201119013,,,Report - LLMADS for FY 2022-2023 .docxhttps://cityofwatsonville.escribemeetings.com/Reports/RESOLUTION CONFIRMING DIAGRAMS, ASSESSMENTS, AND LEVYING ASSESSMENTS FOR LLMADS FISCAL YEAR 2021-22.docx
area was spread among the 17 parcels with one parcel not immediately adjacent to the alley paying slightly less.

STRATEGIC PLAN:

The Assessment District addresses the City Council’s strategic goals of:
03-Infrastructure & Environment
06-Public Safety
FINANCIAL IMPACT:

Bay Breeze LLMAD (0354-958)
In 2021-2022 the assessment was $559.43 per EDU and the total District assessment was $63,774.24.

For Fiscal Year 2022-2023, the total annual assessment per EDU will be increased to $582.92 and the total District assessment will be increased to $66,453.11 which is the maximum allowed per the Engineer's Report and reflects the increase in the Consumer Price Index of 4%. This amount includes $23,400.59 for annual maintenance and the remainder sum of $43,052.53 will be placed in a reserve for the replacement of trees, lights, sewer pump station, and perimeter fencing.

Vista Montaña LLMAD (0354-959)
In Fiscal Year 2021-2022 the total annual assessment was $140,570.94. The assessment for single family dwelling units was $512.58 per unit, the assessment for townhomes was $410.07 per unit and the assessment for apartments was $141.40 per unit. For Fiscal Year 2020-21, the total assessment did not change, as Council did not approve the proposed assessments.

For Fiscal Year 2022-2023 the total annual assessment will be increased to $146,475.39 36 to reflect the 4% increase in the consumer price index and includes funds in the amount of $99,101.75 2,246.52 for annual maintenance and $47,373.6454,230.08 for a the reserve, which provides for replacement costs of such things as lighting or street trees based on current EDU’s within the district (0354-959). The assessment for single-family dwelling units will be $534.11 per unit, the assessment for townhomes will be $427.29 per unit, and the assessment for apartments will be $147.34 per unit.

Gonzales LLMAD (0291-604)
Of the $600 total annual maintenance costs, $432 of annual maintenance costs are allocated toward plant care, mowing, and/or clearing and $168 of annual maintenance costs are allocated toward general alleyway maintenance.

ALTERNATIVE ACTION:

The Council could elect to not adjust assessments by CPI.

ATTACHMENTS AND/OR REFERENCES (If any):

None

Reso No. (CM)
C:\Program Files\eSCRIBE\TEMP\1555691368\1555691368,,,Resolution - Bay Breeze Confirming Diagram and Assessment FY22-23.docxQ:\COUNCIL\2019\052819\Bay Breeze Confirming Assessment 1.docx ri 6/23/2022 3:05:58 PM6/23/2022 12:00:55 PM
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE CONFIRMING DIAGRAM AND ASSESSMENT AND
LEVYING ASSESSMENT FOR FISCAL YEAR 2022-2023 FOR THE BAY

BREEZE SUBDIVISION LANDSCAPING AND LIGHTING MAINTENANCE

ASSESSMENT DISTRICT
Assessment District No. PK-03-02
(Pursuant to the Landscaping and Lighting Act of 1972)

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

1. That pursuant to Chapter 3 (California Streets and Highways Code Sections 22620 et seq.) of the Landscaping and Lighting Act of 1972, the City Council directed the City Public Works and Utilities Assistant Director, Engineer of Work for the Bay Breeze Subdivision Landscaping and Lighting Maintenance Assessment District No.

PK-03-02, to prepare and file an annual report for Fiscal Year 2022-2023.

2. That the Council on April 26, 2022, adopted Resolution No. 78-22 (CM) directing the filing of the 2022-2023 Annual Engineer's Report for Assessment District No. PK-03-02.

3. That the Council on May 24, 2022, adopted Resolution No. 98-22 (CM), accepting the Engineer’s Report.

4. That the Council on May 24, 2022, adopted Resolution No. 99-22 (CM), a Resolution of Intention to levy and collect assessments within the assessment district for Fiscal Year 2022-2023 and set a public hearing to be held on June 28, 2022, the City Council will conduct a public hearing on the proposed annual assessment. The public hearing will be held at the meeting place of the City Council, located in the City Council

Reso No. (CM)
C:\Program Files\eSCRIBE\TEMP\1555691368\1555691368,,,Resolution - Bay Breeze Confirming Diagram and Assessment FY22-23.docxQ:\COUNCIL\2019\052819\Bay Breeze Confirming Assessment 1.docx ri 6/23/2022 3:05:58 PM6/23/2022 12:00:55 PM
2 Chambers, 275 Main Street, (4th) Fourth Floor, Watsonville, California. Notice of the hearing was given in the time and manner required by law.

5. That at the public hearing, the City Council afforded to every interested person an opportunity to protest the annual report either in writing or orally, and the City Council has considered any such protest.

6. That the City Council hereby confirms the annual report of the Engineer of Work accepted by Resolution No. 98-22 (CM) on May 24, 2022.

7. That the City Council hereby confirms the Diagram and Assessment and hereby levies the assessment set forth on Exhibit “A,” attached herein and incorporated hereto, for Fiscal Year 2022-2023.
*******************************

12 Exhibit "A"

Bay Breeze Landscaping and Lighting Maintenance Assessment District Property Owner List and Assessment Roll
Asmnt
No.

APN OWNER Owner Address City ST ZIP Asmnt
Amount
1001 018-601-01 WINTER MICHAEL L & MONICA S H/W JT 116 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1002 018-601-02 SANDS CHRISTOPHER F & WINDY H/W CP RS 112 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1003 018-601-04 CAMACHO JOSE PATRICIO 108 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1004 018-601-05 ARRATIA EDWARD U/M 104 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1005 018-601-06 RAMIREZ PHILLIP NICHOLAS & JENNIFER 100 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1006 018-601-07 LOPEZ DOLORES CASTRO U/W 96 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1007 018-601-10 ALCANTAR MARCELINO & MARIA H/W JT 4 EGRET LN WATSONVILLE CA 95076 $ 582.92 1008 018-601-09 BAKER MICHAEL A & COURTNEY N 8 EGRET LN WATSONVILLE CA 95076 $ 582.92 1009 018-601-08 SAMMS CHARLIE FRANCIS JR & KATHLEEN YEDNAK 1760 HAMES RD APTOS CA 95003 $ 582.92 1010 018-602-01 DIAZ NANCY D U/W JT ETAL 21 EGRET LN WATSONVILLE CA 95076 $ 582.92 1011 018-602-02 SOLORIO ALFONSO & MINA H/W JT 17 EGRET LN WATSONVILLE CA 95076 $ 582.92 1012 018-602-03 BHATNAGAR SANJAY M/M SS 13 EGRET LN WATSONVILLE CA 95076 $ 582.92 1013 018-602-04 ROCHA ARTURO 9 EGRET LN WATSONVILLE CA 95076 $ 582.92 1014 018-602-05 TEJAM ELIEZER T & ELISA H/W JT 5 EGRET LN WATSONVILLE CA 95076 $ 582.92 1015 018-611-06 MUNIZ JOSE E MORALES 25 YARRO CT WATSONVILLE CA 95076 $ 582.92 1016 018-611-05 RAMIREZ HERMOSILLO CALIXTO 21 YARRO CT WATSONVILLE CA 95076 $ 582.92 1017 018-611-04 VELAZQUEZ ERNESTO SANTIAGO REBOLLAR 17 YARRO CT WATSONVILLE CA 95076 $ 582.92 1018 018-611-01 KAJIHARA KEVIN KENICHI & JEE EUN H/W CP RS ETAL 6 VISTA ST WATSONVILLE CA 95076 $ 582.92 1019 018-611-02 PIMENTEL JORGE & JOSEFINA H/W JT 56 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1020 018-611-03 VILLARREAL ARMANDO C & DEBBIE B H/W JT 52 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1021 018-613-08 COLLAZO ANTONIA 4 YARRO CT WATSONVILLE CA 95076 $ 582.92 1022 018-613-07 PENNINGTON ELIZABETH JULIE 150 FOX CT SCOTTS VALLEY CA 95066 $ 582.92 1023 018-613-06 SANTOS CHAVEZ LUS ENEDINA 12 YARRO CT WATSONVILLE CA 95076 $ 582.92 1024 018-613-05 STRUTHERS EDITHA & JERRY A 16 YARRO CT WATSONVILLE CA 95076 $ 582.92 1025 018-613-04 FERNANDEZ GILBERTO R H/W JT ETAL 20 YARRO CT WATSONVILLE CA 95076 $ 582.92 1026 018-613-03 NANDY RAJEEV 24 YARRO CT WATSONVILLE CA 95076 $ 582.92 1027 018-613-02 GOMEZ CARLOS L & FLAVIA B H/W JT 28 YARRO CT WATSONVILLE CA 95076 $ 582.92 1028 018-613-01 FIGUEROA JOSE LUIS 32 YARRO CT WATSONVILLE CA 95076 $ 582.92 1029 018-613-21 PATEL RAKSHIT V & RUPAL R 4 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1030 018-613-20 BRANDT HERBERT M & TERI L 8 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1031 018-613-19 JUAREZ-CAHUE FRANCISCO H/W JT ETAL 12 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1032 018-613-18 SLADE DIANNE 16 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1033 018-613-17 MACERI EILEEN TRUSTEE ETAL 20 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1034 018-613-16 JENNINGS PHILLIP E & TINA C H/W JT 24 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1035 018-613-15 SANCHEZ ROSA M M/W SS 28 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1036 018-613-14 ORTIZ JUAN C H/W JT ETAL 32 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 Exhibit "A"

1037 018-613-09 DEWALD CELESTE S W/H JT ETAL 20 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1038 018-613-10 MARQUEZ JAIME 16 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1039 018-613-11 SANCHEZ JACARANDA MEDINA 12 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1040 018-613-12 DURAN PEDRO RODRIGUEZ 8 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1041 018-613-13 ELARCO JAIME C & NIEVES H/W JT 4 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1042 018-614-01 HERNANDEZ ROCIA 5 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1043 018-614-02 CARRILLO MIGUEL 9 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1044 018-614-03 ROCHA JOSE G H/W JT ETAL 13 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1045 018-614-04 SALAZAR JUAN B U/M JT ETAL 17 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1046 018-614-05 BAJAN MATTHEW C & MARIA DASILVA H/W JT 21 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1047 018-614-06 CATTERALL LISA G 25 KINGFISHER DR WATSONVILLE CA 95077 $ 582.92 1048 018-614-07 LEMOSS CHRISTIAN D 29 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1049 018-614-08 JIMENEZ REYES & LIDIA H/W JT 33 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1050 018-621-01 TORRES ERNESTO & TERESA F 37 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1051 018-621-02 RETTNER SANDRA 41 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1052 018-621-03 VELEZ VICTOR M & NANCY Y H/W JT 45 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1053 018-621-04 SINGH KARINVIR 49 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1054 018-621-05 LARIOS FORTINO & MARIA 53 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1055 018-621-06 MONCOVICH WILLIAM N & KAREN S TRUSTEES 255 FIELDBROOK LN WATSONVILLE CA 95076 $ 582.92 1056 018-621-07 LARIOS OSWALDO 61 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1057 018-621-08 ERICKSON MARK 3085 AGUAZUL DR SOQUEL CA 95073 $ 582.92 1058 018-621-09 ZHANG XIANG 69 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1059 018-621-10 COLLAZO JULIAN U/M 73 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1060 018-621-11 DRAAYER GERALD F & BAONA G 77 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1061 018-621-12 FERNANDO ELLEN M 244 STANYAN ST SALINAS CA 93907 $ 582.92 1062 018-621-13 GLYNN STEPHEN MICHAEL & JULIE 85 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1063 018-621-14 CHAU KING & MEY C 89 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1064 018-621-15 CONNELL JOSEPH IRI & DEBORAH 93 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1065 018-621-16 FIGUEROA CARLOS & HELEN H/W JT 97 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1066 018-621-17 JIMENEZ JOSE E & MARIBEL H/W JT 101 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1067 018-621-18 WALTERS DAVID BYRON & DINAH ABBOTT 105 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1068 018-621-19 THOMAS ADAM U/M 5167 COLD SPRINGS DR FORESTHILL CA 95631 $ 582.92 1069 018-621-20 ERICKSON MARK 3085 AGUAZUL DR SOQUEL CA 95073 $ 582.92 1070 018-621-21 RAMIREZ EDWARD H/W JT ETAL 117 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1071 018-622-01 LANDRY SEAN R & CYNTHIA M 88 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1072 018-622-02 CHAU YONG C & SUSAN 84 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1073 018-622-03 ZAMORA ARNULFO & MARIA G H/W JT 80 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1074 018-622-04 KRISTICH KRISTO 76 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1075 018-622-05 PRESLEY FLORENCIA SANCHEZ TRUSTEE 72 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1076 018-622-06 GALVAN ALFONSO & SUSANA C H/W JT 68 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1077 018-622-07 ANTONINO ROBERT & CHRISTINA M 64 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 Exhibit "A"

1078 018-622-08 MONDRAGON EVENCIO & LUZMARIA H/W JT 60 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1079 018-622-09 GUZMAN CARLOS H/W JT ETAL 56 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1080 018-622-10 MILLAN GERMAN ROLDAN S/M JT ETAL 5 HERON CT WATSONVILLE CA 95076 $ 582.92 1081 018-622-11 MENDOZA SERVANDO M/M SS 9 HERON CT WATSONVILLE CA 95076 $ 582.92 1082 018-622-12 CHANG JONG HEE & GU HEE H/W CP RS 13 HERON CT WATSONVILLE CA 95076 $ 582.92 1083 018-623-01 MONROY BERONICA & GUADALUPE J W/H JT 12 HERON CT WATSONVILLE CA 95076 $ 582.92 1084 018-623-02 COVELL ROSE M U/W AS JT ETAL 8 HERON CT WATSONVILLE CA 95076 $ 582.92 1085 018-623-03 CANO CESAR GONZALEZ PO BOX 610 SOQUEL CA 95073 $ 582.92 1086 018-623-04 DENG FANG W/H JT ETAL 3596 HART CMN FREMONT CA 94538 $ 582.92 1087 018-623-05 MIRANDA CAROL B & EFRAIN W/H JT 48 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1088 018-623-06 CORTES FRANCISCO C & ANGELITA H/W JT 44 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1089 018-623-07 LOWETH CATHERINE M U/W 40 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1090 018-623-08 DVORAK JANET A 36 KINGFISHER DR WATSONVILLE CA 95076 $ 582.92 1091 018-623-09 MARTINEZ ARIEL M/M SS 9 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1092 018-623-10 CANALES HECTOR J & MARIA M H/W JT 13 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1093 018-612-12 KOLBACH GERRIT H & JODY L 17 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1094 018-612-11 DANKERT ROBERT TRUSTEE 21 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1095 018-612-10 LANDSCHOOT WILLIAM F & HILDEGARD FELLOW 3061 STRAWBERRY HIL PEBBLE BEACH CA 93953 $ 582.92 1096 018-612-09 TAYLOR JEFFREY S 29 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1097 018-612-08 MATA GABRIELLE 33 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1098 018-612-07 LEVINE BERNARD R & HARRIET N 815 CLINTONIA AVE SAN JOSE CA 95125 $ 582.92 1099 018-612-06 FILE JOHN D M/M SS 41 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1100 018-612-05 CHOWDHURY SAMYAK ROY 611 HARRISON AVE CAMPBELL CA 95008 $ 582.92 1101 018-612-04 JONES GREGORY R & ANN-MARIE D H/W JT 2 OAK RD SANTA CRUZ CA 95060 $ 582.92 1102 018-612-03 BENTLEY THOMAS K & HEATHER L 53 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1103 018-612-02 JARVIS MICHAEL A 57 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1104 018-612-01 DACQUIGAN JUAN T & SUSANA S H/W JT 61 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1105 018-603-10 BIONDI ANTONIO D & SUSAN M 65 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1106 018-603-09 JACKSON JOHN G & ANNE T 69 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1107 018-603-08 FLOWERS SHERI 73 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1108 018-603-07 STEINBERG LEE 9006 SOQUEL DR APTOS CA 95003 $ 582.92 1109 018-603-06 HURLEY KEAN & SHEILA H/W CP RS 125 VIA MEDICI APTOS CA 95003 $ 582.92 1110 018-603-05 KOOKER PATRICIA A TRUSTEE 85 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1111 018-603-04 HANSEN PAUL & KATHLEEN 89 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1112 018-603-03 SCHACHER NICK 93 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1113 018-603-02 RUBIO ANTHONY & LORRIE H/W JT 97 PELICAN DR WATSONVILLE CA 95076 $ 582.92 1114 018-603-01 BRETAN PETER N & MELANIE JEAN 225 MAIN ST 2780 WATSONVILLE CA 95076 $ 582.92 TOTAL ASSESSMENT FY 22/23 $ 66,453.11
Exhibit "A"

Reso No. (CM)
C:\Program Files\eSCRIBE\TEMP\1555881940\1555881940,,,Resolution - Vista Montaña Confirming Diagram and Assessment FY22-

23.docx
ri 6/23/2022 3:05:59 PM
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

CONFIRMING DIAGRAM AND ASSESSMENT AND LEVYING
ASSESSMENT FOR FISCAL YEAR 2022-2023 FOR THE VISTA MONTAÑA

SUBDIVISION LANDSCAPING AND LIGHTING MAINTENANCE

ASSESSMENT DISTRICT
Assessment District No. PK-03-03
(Pursuant to the Landscaping and Lighting Act of 1972)

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

1. That pursuant to Chapter 3 (California Streets and Highways Code Sections 22620 et seq.) of the Landscaping and Lighting Act of 1972, the City Council directed the City Public Works and Utilities Assistant Director, Engineer of Work for the Vista Montaña Subdivision Landscaping and Lighting Maintenance Assessment District No. PK-03-03, to prepare and file an annual report for Fiscal Year 2022-2023.

2. That the Council on April 26, 2022, adopted Resolution No. 79-22 (CM) directing the filing of the 2022-2023 Annual Engineer's Report for Assessment District No.

PK-03-03.

3. That the Council on May 24, 2022, adopted Resolution No. 100-22 (CM), accepting the Engineer’s Report.

4. That the Council on May 24, 2022, adopted Resolution No. 101-22 (CM), a Resolution of Intention to levy and collect assessments within the assessment district for Fiscal Year 2022-2023 and set a public hearing to be held on June 28, 2022. The public hearing will be held at the meeting place of the City Council, located in the City Council

Reso No. (CM)
C:\Program Files\eSCRIBE\TEMP\1555881940\1555881940,,,Resolution - Vista Montaña Confirming Diagram and Assessment FY22-

23.docx
ri 6/23/2022 3:05:59 PM
2 Chambers, 275 Main Street, (4th) Fourth Floor, Watsonville, California. Notice of the hearing was given in the time and manner required by law.

5. That at the public hearing, the City Council afforded to every interested person an opportunity to protest the annual report either in writing or orally, and the City Council has considered any such protest.

6. That the City Council hereby confirms the annual report of the Engineer of Work accepted by Resolution No. 100-22 (CM) on May 24, 2022.

7. That the City Council hereby confirms the Diagram and Assessment and hereby levies the assessment set forth on Exhibit “A,” attached herein and incorporated hereto, for Fiscal Year 2022-2023.
*******************************

15 Exhibit "A"

17 Vista Montaña Landscaping and Lighting Maintenance Assessment District 2022/23 Property Owner List and Assessment Roll
APN Owner Owner Address City ST Zip Assessment
Amount*
017-741-01 HSEI REX C & JUDITH S 240 VENTANA WAY APTOS CA 95003 $534.11 017-741-02 MELGOZA YOLANDA S/W 705 VISTA MONTANA DR WATSONVILLE CA 95076 $534.11 017-741-03 FERNANDEZ ESTHER U/W JT ETAL 709 VISTA MONTANA DR WATSONVILLE CA 95076 $534.11 017-741-04 RYAN JAMES & SONIA H/W JT 713 VISTA MONTANA DR WATSONVILLE CA 95076 $534.11 017-741-05 YIN ALBERTO & TERESITA H/W JT 2290 MURIEL DR SANTA CRUZ CA 95062 $534.11 017-741-06 YIN ALBERTO & TERESITA 2290 MURIEL DR SANTA CRUZ CA 95062 $534.11 017-741-07 HOPKINS WM E & R S 93 ALDRIDGE LN WATSONVILLE CA 95076 $534.11 017-741-08 SINGH PARMENDER 729 VISTA MONTANA DR WATSONVILLE CA 95076 $534.11 017-741-09 GARCIA JUAN 733 VISTA MONTANA DR WATSONVILLE CA 95076 $534.11 017-741-10 MICHEL LUIS ALBERTO LORETO 737 VISTA MONTANA DR WATSONVILLE CA 95076 $534.11 017-741-11 RAYGOZA JAIME E & MAURA T 741 VISTA MONTANA DR WATSONVILLE CA 95076 $534.11 017-741-12 PEREZ ELEAZAR RUIZ & ALEJANDRA 745 VISTA MONTANA DR WATSONVILLE CA 95076 $534.11 017-741-13 NAVARRO MARIA TRUSTEE 140 KINGSTON DR WATSONVILLE CA 95076 $534.11 017-741-14 SUPPES JOHN B TRUSTEE P O BOX 60970 PALO ALTO CA 94306 $427.29 017-741-15

CADWELL KENNETH RICHARD & ROSSENA
VILLAMERO 757 VISTA MONTANA DR WATSONVILLE CA 95076 $427.29 017-741-16 SHERRILL STEVEN S/M 761 VISTA MONTANA DR WATSONVILLE CA 95076 $427.29 017-741-17 JUAREZ RICARDO S/M 101 FRANICH DR WATSONVILLE CA 95076 $427.29 017-741-18 WHITELAW RYAN J & CLAIRE E 4455 NOVA DR SANTA CRUZ CA 95062 $427.29 017-741-19 LUMICAO MARIA THERESA U/W 762 ARCE ST WATSONVILLE CA 95076 $427.29 017-741-20 CABRALES EFREN CASTILLO 758 ARCE ST WATSONVILLE CA 95076 $427.29 017-741-21 GARCIA ISRAEL H/W JT ALL AS TC ETAL 754 ARCE ST WATSONVILLE CA 95076 $427.29 017-741-22 MELGOZA YOLANDA U/W 750 ARCE ST WATSONVILLE CA 95076 $534.11 017-741-23 VARGAS ERNESTO & VERONICA H/W JT 746 ARCE ST WATSONVILLE CA 95076 $534.11 017-741-24 TAYTAYON ELISEO MENDOZA 18 HAZELWOOD CT WATSONVILLE CA 95076 $534.11 017-741-25 LLANOS JESUS ENRIQUE 738 ARCE ST WATSONVILLE CA 95076 $534.11 017-741-26 OROZCO LETICIA & GABRIEL 734 ARCE ST WATSONVILLE CA 95076 $534.11 017-741-27 VAZQUEZ BLANCA & JOSE L W/H JT 730 ARCE ST WATSONVILLE CA 95076 $534.11 017-741-28 ESPINO NOEL 726 ARCE ST WATSONVILLE CA 95076 $534.11 017-741-29 NAREZ DAVID R H/W JT ETAL 722 ARCE ST WATSONVILLE CA 95076 $534.11 017-741-30 MARTINEZ RICHARD & SILVIA H/W JT 718 ARCE ST WATSONVILLE CA 95076 $534.11 017-741-31 ESPINOZA ABEL & MARITA H/W JT 714 ARCE ST WATSONVILLE CA 95076 $534.11 017-741-32 MORAN PABLO JR & VERONICA MARIE H/W CP RS 710 ARCE ST WATSONVILLE CA 95076 $534.11 017-741-33 MEDINA LUIS J H/W JT ETAL 706 ARCE ST WATSONVILLE CA 95076 $534.11 017-741-34 GERRERO RAUL CASTORENA 702 ARCE ST WATSONVILLE CA 95076 $534.11 017-742-01 SOLORIO ALFONSO G & MAXIMINA 701 ARCE ST APTOS CA 95003 $534.11 017-742-02 GROPE COLLEEN & GARY 7422 EAGLE TER YOUNGSTOWN OH 44512 $534.11 017-742-03 ZAMORA MARISOL. S/W 709 ARCE ST WATSONVILLE CA 95076 $534.11 Exhibit "A"

017-742-04 PEREZ PABLO GALLO 713 ARCE ST WATSONVILLE CA 95076 $534.11 017-742-05 SEGURA LEO M/M SS P O BOX 1617 FREEDOM CA 95019 $534.11 017-742-06 ARTEAGA JUAN & MIREYA H/W JT 721 ARCE ST WATSONVILLE CA 95076 $534.11 017-742-07 FERNANDEZ GONZALO TRUSTEES ETAL 725 ARCE ST WATSONVILLE CA 95076 $534.11 017-742-08 RUSSELL PAUL F & DEBORA AN H/W JT 729 ARCE ST WATSONVILLE CA 95076 $534.11 017-742-09 DIAZ RAFAEL R & SILVIA M H/W JT 733 ARCE ST WATSONVILLE CA 95076 $534.11 017-742-10 IBARRA MARIA GUADALUPE REYNA 739 ARCE ST WATSONVILLE CA 95076 $534.11 017-742-11 HERNANDEZ JAVIER H/W JT ETAL 741 ARCE ST WATSONVILLE CA 95076 $534.11 017-742-12 PEREIRA NELLIE A U/W JT EAL 745 ARCE ST WATSONVILLE CA 95076 $534.11 017-742-13 BURBATT ROBERT P & WENDY C 749 ARCE ST WATSONVILLE CA 95076 $534.11 017-742-14 DAVIS MELANI L TRUSTEE 753 ARCE ST WATSONVILLE CA 95076 $427.29 017-742-15 PENA LEONARDO & ANABELL L H/W JT 757 ARCE ST WATSONVILLE CA 95076 $427.29 017-742-16 CLOUDBREAK PROPERTIES LLC 600 CELESTE WAY SANTA CRUZ CA 95065 $427.29 017-742-17 GREGERIO MARIA N M/W SS 121 FRANICH DR WATSONVILLE CA 95076 $427.29 017-742-18 CAVANAGH MARSHA 408 PILGRIM DR CAPITOLA CA 95010 $427.29 017-742-19 ARTEAGA EMERITA GUTIERREZ U/W 762 ROBLE ST WATSONVILLE CA 95076 $427.29 017-742-20 BRJK LLC 758 ROBLE ST WATSONVILLE CA 95076 $427.29 017-742-21 DUARTE AVELARDO JERONIMO 754 ROBLE ST WATSONVILLE CA 95076 $427.29 017-742-22 BALLESTA FRANK & JULIE H/W CP RS 750 ROBLE ST WATSONVILLE CA 95076 $534.11 017-742-23 SOLORZANO GILBERTO R & BERTHA H/W JT 746 ROBLE ST WATSONVILLE CA 95076 $534.11 017-742-24 GREGORIO JOE P & SHANEEN D 742 ROBLE ST WATSONVILLE CA 95076 $534.11 017-742-25 BRAMBILA JOSE L & SANDRA H/W JT 738 ROBLE ST WATSONVILLE CA 95076 $534.11 017-742-26 PLASENCIA MIGUEL & MARIA 734 ROBLE ST WATSONVILLE CA 95076 $534.11 017-742-27 MELGOZA RIGOBERTO 730 ROBLE ST WATSONVILLE CA 95076 $534.11 017-742-28 LUA CARMEN U/W 726 ROBLE ST WATSONVILLE CA 95076 $534.11 017-742-29 FERNANDEZ ELENA 722 ROBLE ST WATSONVILLE CA 95076 $534.11 017-742-30 OROZCO YADHIRA 718 ROBLE ST WATSONVILLE CA 95076 $534.11 017-742-31 AGUIRRE ATENEDOR & LEONOR 714 ROBLE ST WATSONVILLE CA 95076 $534.11 017-742-32 PATINO CARLOS S/M 710 ROBLE ST WATSONVILLE CA 95076 $534.11 017-742-33 TRINIDAD ARTHUR M & REGINA A H/W JT 706 ROBLE ST WATSONVILLE CA 95076 $534.11 017-742-34 RODRIGUEZ ROBERT L JR & LUCIA H/W JT 702 ROBLE ST WATSONVILLE CA 95076 $534.11 017-743-01 DUQUE REMINGTON U/M 701 ROBLE ST WATSONVILLE CA 95076 $534.11 017-743-02 GREGG RYAN C & GLORIA P H/W JT 705 ROBLE ST WATSONVILLE CA 95076 $534.11 017-743-03 GUZMAN JOSE 709 ROBLE ST WATSONVILLE CA 95076 $534.11 017-743-04 VARGAS ANTONIO S M/M SS 713 ROBLE ST WATSONVILLE CA 95076 $534.11 017-743-05 ELIZALDE PETER JR 717 ROBLE ST WATSONVILLE CA 95076 $534.11 017-743-06 ROTH GARY L & SUZANNE M H/W JT 721 ROBLE ST WATSONVILLE CA 95076 $534.11 017-743-07 GUERRERO OMAR J JR 725 ROBLE ST WATSONVILLE CA 95076 $534.11 017-743-08 HAAS IRMA U/W P O BOX 1006 WATSONVILLE CA 95077 $534.11 017-743-09 MELGOZA RAMON & MARIELA 733 ROBLE ST WATSONVILLE CA 95076 $534.11 017-743-10 GONZALES RICARDO G & CHRISTINA A 261 PALOMA WAY WATSONVILLE CA 95076 $534.11 Exhibit "A"

017-743-11 DUARTE ROGELIO ANAYA 172 CARNATION DR FREEDOM CA 95019 $534.11 017-743-12 LOZA EVARISTO A H/W JT ETAL 745 ROBLE ST WATSONVILLE CA 95076 $534.11 017-743-13 PEREZ ALEJANDRO & VERONICA H/W JT 749 ROBLE ST WATSONVILLE CA 95076 $534.11 017-743-14 PEREZ IRMA 753 ROBLE ST WATSONVILLE CA 95076 $427.29 017-743-15 NAVARRO RIGOBERTO ROCHA & MICHELLE MARIE 757 ROBLE ST WATSONVILLE CA 95076 $427.29 017-743-16 LOPEZ FRANCISCO REYES JR 761 ROBLE ST WATSONVILLE CA 95076 $427.29 017-743-17 RAMENO JESUS 147 FRANICH DR WATSONVILLE CA 95076 $427.29 017-743-20 SOARES MARIA L 501 CENTER ST WATSONVILLE CA 95076 $427.29 017-743-21 YIN ALBERTO & TERESITA 2290 MURIEL DR SANTA CRUZ CA 95062 $427.29 017-743-22 GOMEZ MARIANA L 754 CIPRES ST WATSONVILLE CA 95076 $427.29 017-743-23 GONG JAMES & LISA C K 221 JASMINE LN WATSONVILLE CA 95076 $534.11 017-743-24 CRAWFORD DEBRA TRUSTEE 746 CIPRES ST WATSONVILLE CA 95076 $534.11 017-743-25 FERNANDEZ ELPIDIO 742 CIPRES ST WATSONVILLE CA 95076 $534.11 017-743-26 SCHWAB THOMAS R & VIRGINIA G P O BOX 426 CAPITOLA CA 95010 $534.11 017-743-27 JORDAN CHRISTOPHER & ANNA R H/W JT 734 CIPRES ST WATSONVILLE CA 95076 $534.11 017-743-28 CHIN RAYMOND C S/M 730 CIPRES ST WATSONVILLE CA 95076 $534.11 017-743-29 ARROYO SILVIA 726 CIPRES ST WATSONVILLE CA 95076 $534.11 017-743-30 GALVAN FRANCISCO J & VERONICA H/W CP RS 722 CIPRES ST WATSONVILLE CA 95076 $534.11 017-743-31 FLORES ELLERY T & LETICIA A H/W JT 718 CIPRES ST WATSONVILLE CA 95076 $534.11 017-743-32 MARINEZ JUAN & DAISY H/W JT 714 CIPRES ST WATSONVILLE CA 95076 $534.11 017-743-33 FLORES MARIETA T U/W ALL TC ETAL 710 CIPRES ST WATSONVILLE CA 95076 $534.11 017-743-34 ELAZIER GARY E U/M AS JT ETAL 706 CIPRES ST WATSONVILLE CA 95076 $534.11 017-743-35 KOKOT JACEK & ANNA M H/W JT 702 CIPRES ST WATSONVILLE CA 95076 $534.11 017-743-37 HERRERA ARMANDO & MARIA GUADALUPE 163 FRANICH DR WATSONVILLE CA 95076 $427.29 017-744-01 HOLGUIN JOHN E & NORMA B 156 FRANICH DR WATSONVILLE CA 95076 $427.29 017-744-02 SEYMOUR BRIANA R 152 FRANICH DR WATSONVILLE CA 95076 $427.29 017-744-03 VEGA MIGUEL & LAURA 148 FRANICH DR WATSONVILLE CA 95076 $427.29 017-744-04 CONTRERAS ERNEST P JR 144 FRANICH DR WATSONVILLE CA 95076 $427.29 017-744-05 RUVALCABA FERNANDO 140 FRANICH DR WATSONVILLE CA 95076 $427.29 017-744-06 VILOZNY I Y LTD 2550 BEGONIA PL SANTA CRUZ CA 95062 $427.29 017-744-07 VALDIVIA JOEL 132 FRANICH DR WATSONVILLE CA 95076 $427.29 017-744-08 DELGADILLO CESAR & MARTA H/W JT 128 FRANICH DR WATSONVILLE CA 95076 $427.29 017-744-09 RODRIGUEZ IVAN S/M 124 FRANICH DR WATSONVILLE CA 95076 $427.29 017-744-10 CASTRO JOSE GARCIA U/M 120 FRANICH DR WATSONVILLE CA 95076 $427.29 017-744-11 ESPINOZA EDUARDO & ISABEL H/W ALL AS JT ETAL 116 FRANICH DR WATSONVILLE CA 95076 $427.29 017-744-12 CONTRERAS MIGUEL A 24 PIMA ST WATSONVILLE CA 95076 $427.29 017-744-13 LEDESMA-PENA BELINDA W/H JT ETAL 108 FRANICH DR WATSONVILLE CA 95076 $427.29 017-744-14 GUERRERO FELIX GUERRERO 36-D TREMBLEY LN WATSONVILLE CA 95076 $427.29 017-744-15 WOOD ANDREW JOSEPH & SASHA DAVIS 160 FRANICH DR WATSONVILLE CA 95076 $427.29 017-744-16 FERNANDEZ ANGELICA 164 FRANICH DR WATSONVILLE CA 95076 $427.29 017-744-17 AGUILERA ADRIAN H/W JT ETAL 168 FRANICH DR WATSONVILLE CA 95076 $427.29 Exhibit "A"

017-744-18 OROZCO LUIS S JR 206 COPPERLEAF LN SN JUAN BAUTISTA CA 95045 $427.29 017-744-19 MARTINEZ LUZ M U/W TC ETAL 176 FRANICH DR WATSONVILLE CA 95076 $427.29 017-744-20 RANDOLPH JOHN C & CECILY TRUSTEES 530 LIGHT SPRINGS RD APTOS CA 95003 $427.29 017-744-21 LEE GORDON & JUDITH 2850 PLEASANT VALLEY RD APTOS CA 95003 $427.29 017-744-22 MANFRE GARY & KRISTI TRUSTEES ALL AS TC ETAL P O BOX 64 WATSONVILLE CA 95077 $427.29 017-744-23 AUVINEN JEWEL SHELLY TRUSTEE 115 MARNELL AVE B SANTA CRUZ CA 95062 $427.29 017-744-24 TANGONAN VICTORIA E GABUG & MELANIO 761 CIPRES ST WATSONVILLE CA 95076 $427.29 017-744-25 VILLALOBOS JOHN E & LAURA I 757 CIPRES ST WATSONVILLE CA 95076 $427.29 017-744-26 BELTRAN NELSON & JANE H/W JT 753 CIPRES ST WATSONVILLE CA 95076 $427.29 017-744-27 DIAZ CESAR C & NORMA I 749 CIPRES ST WATSONVILLE CA 95076 $534.11 017-744-28 CHIPRES JAVIER & BERTHA A H/W CP RS 745 CIPRES ST WATSONVILLE CA 95076 $534.11 017-744-29 DRAKE-GUY JANICE 741 CIPRES ST WATSONVILLE CA 95076 $534.11 017-744-30 AVILA CAROLINA H/W JT ETAL 737 CIPRES ST WATSONVILLE CA 95076 $534.11 017-744-31 KORNDER PHILLIP & SHALIMAR 733 CIPRES ST WATSONVILLE CA 95076 $534.11 017-744-32 CAMPOS CYNTHIA M 729 CIPRES ST WATSONVILLE CA 95076 $534.11 017-744-33 KETTNICH KATHLEEN N M/W SS 9 E PHILLIPS RD WATSONVILLE CA 95076 $534.11 017-744-34 DETESO DAVID R & KATHLEEN L 213 KINGSBURY DR APTOS CA 95063 $534.11 017-744-35 THE FEELEY 2008 TRUST 717 CIPRESS ST WATSONVILLE CA 95076 $534.11 017-744-36 MEZA LUCILA G & MIGUEL M W/H JT 713 CIPRES ST WATSONVILLE CA 95076 $534.11 017-744-37 JOHNSON CARI CARMELA 709 CIPRES ST WATSONVILLE CA 95076 $534.11 017-744-38 ALBOR EDGAR & NAOMI SUHAY 705 CIPRES ST WATSONVILLE CA 95076 $534.11 017-744-39 ARCE JOSE LUIS 701 CIPRES ST WATSONVILLE CA 95076 $534.11 017-551-23 WATSONVILLE VISTA MONTANA ASSOCIATES LP P O BOX 60970 PALO ALTO CA 94306 $19,891.06 017-751-02 AYALA CECILIA 505 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-751-03 ORTIZ RODOLFO JR & VERONICA H/W JT 509 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-751-04 RUIZ SANDY U/W ETAL 513 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-751-05 HAYES RONALD & HELEN 517 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-751-06 BARAJAS RUBEN GONZALEZ H/W ALL JT ETAL 521 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-751-07 BASILIO MARIA L & MARIO W/H CP RS 525 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-751-08 REYES RUBEN H/W CP RS ETAL 529 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-751-09 CURIEL FRANCISCO J RUELAS 533 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-751-10 MICCICHI ERIN TRUSTEE 537 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-751-11 LOPEZ MICAELA U/W JT ETAL 541 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-751-12 MORENO ESTEBAN & MARIA C H/W ALL AS JT ETAL 545 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-751-13 DAVIDS JOHN A TRUSTEE ETAL 62 BROWN VALLEY RD WATSONVILLE CA 95076 $427.29 017-751-14 SALAS ARTHUR & SUSAN H/W CP RS 135 MARCELA DR WATSONVILLE CA 95076 $427.29 017-751-15 SMITH ROGER V 270 TENNYSON DR PALO ALTO CA 94301 $427.29 017-751-16 CLOUDBREAK PROPERTIES LLC 600 CELESTE WAY SANTA CRUZ CA 95065 $427.29 017-751-17 REBOLLAR JOSE T & JUANA H/W JT 147 MARCELA DR WATSONVILLE CA 95076 $427.29 017-751-18 IBARRA NICOLE D M/W SS 151 MARCELA DR WATSONVILLE CA 95076 $427.29 017-751-19 FLORES EVELIA HERNANDEZ 155 MARCELA DR WATSONVILLE CA 95076 $427.29 Exhibit "A"

017-751-20 MENDEZ LUIS 159 MARCELA DR WATSONVILLE CA 95076 $427.29 017-751-21 BENNETT STEVEN & GENIE H/W CP RS 163 MARCELA DR WATSONVILLE CA 95076 $427.29 017-751-22 GOMEZ MARIBEL 562 JOYCE CT WATSONVILLE CA 95076 $427.29 017-751-23 TOSTA JOSEPH C 2200 17TH AVE SANTA CRUZ CA 95062 $427.29 017-751-24 TAVANTZIS A MARCELA 509 E BEACH ST WATSONVILLE CA 95076 $427.29 017-751-25 MORAN ASHLEY ELIZABETH & SILVINO JR 166 MARCELA DR WATSONVILLE CA 95076 $427.29 017-751-26 ESTRADA ISAAC J & TARA C 542 MANZANA ST WATSONVILLE CA 95076 $427.29 017-751-27 DEAN TAICHI NOAH 206 ARROYO SECO SANTA CRUZ CA 95060 $427.29 017-751-28 ROCHA ANTONIO & BERTHA H/W CP RS 534 MANZANA ST WATSONVILLE CA 95076 $427.29 017-751-29 RUIZ JOSE 530 MANZANA ST WATSONVILLE CA 95076 $534.11 017-751-30 MARTINEZ MARVIN & SARAHI 528 MANZANA ST WATSONVILLE CA 95076 $534.11 017-751-31 BETTENCOURT CARRIE & JOHN 522 MANZANA ST WATSONVILLE CA 95076 $534.11 017-751-32 LEONARDIS BRIAN & JESSICA H/W JT 518 MANZANA ST WATSONVILLE CA 95076 $534.11 017-751-33 RAMOS AMINTA R & ARTURO W/H JT 514 MANZANA ST WATSONVILLE CA 95076 $534.11 017-751-34 MC GRAW RANDE & BLANCA H/W JT 510 MANZANA ST WATSONVILLE CA 95076 $534.11 017-751-35 BRAZIER THOMAS S & MOIRA A 506 MANZANA ST WATSONVILLE CA 95076 $534.11 017-751-39 SALINAS LILIANA U/W 123 MARCELA DR WATSONVILLE CA 95076 $427.29 017-751-40 JUDD NICK & REBECCA 119 MARCELA DR WATSONVILLE CA 95076 $427.29 017-751-41 SCHWAB THOMAS R & VIRGINIA G P.O. BOX 426 CAPITOLA CA 95010 $427.29 017-751-42 KUMAR DEVIKA 111 MARCELA DR WATSONVILLE CA 95076 $427.29 017-751-43 PEREZ JESSIE 107 MARCELA DR WATSONVILLE CA 95076 $427.29 017-751-44 SILVA SUSANA 546 CEREZE ST WATSONVILLE CA 95076 $534.11 017-751-45 JOHNSTON COREY J & KATLIN K H/W JT 542 CEREZE ST WATSONVILLE CA 95076 $534.11 017-751-46 HERNANDEZ LAURA ANN S/P 538 CEREZE ST WATSONVILLE CA 95076 $534.11 017-751-47 CAMACHO JOSE H H/W JT ETAL 534 CEREZE ST WATSONVILLE CA 95076 $534.11 017-751-48 ZAMORA TERESA & JOSE L W/H JT ETAL 530 CEREZE STREET WATSONVILLE CA 95076 $534.11 017-751-49 ROCIO CASTRO 526 CEREZE ST WATSONVILLE CA 95076 $534.11 017-751-50 HERNANDEZ HERMALINDA M/W SS AS JT ETAL 522 CEREZE ST WATSONVILLE CA 95076 $534.11 017-751-51 MARTINEZ BENJAMIN FRANK 518 CEREZE ST WATSONVILLE CA 95076 $534.11 017-751-52 HERNANDEZ ANDREW & KRISTI H/W JT 514 CEREZE ST WATSONVILLE CA 95076 $534.11 017-751-53 GONZALEZ DILVA J 510 CEREZE ST WATSONVILLE CA 95076 $534.11 017-751-54 MILHOUSE ANGELIQUE 506 CEREZE ST WATSONVILLE CA 95076 $534.11 017-751-57 WILSON KENNETH C 110 BRYCE CT APTOS CA 95003 $427.29 017-752-01 BYERS JON & DIANE SIRI H/W JT 505 MANZANA ST WATSONVILLE CA 95076 $534.11 017-752-02 OKAMURA STEVEN U/M 509 MANZANA ST WATSONVILLE CA 95076 $534.11 017-752-03 GARCIA ANGELICA B S/P JT ETAL 513 MANZANA ST WATSONVILLE CA 95076 $534.11 017-752-04 CRAWFORD DON C JR & STACEY 510 VISTA DEL MAR DR APTOS CA 95003 $534.11 017-752-05 CASILLAS ANA S S/P JT ETAL 521 MANZANA ST WATSONVILLE CA 95076 $534.11 017-752-06 DORAME VERONICA U/W 525 MANZANA ST WATSONVILLE CA 95076 $534.11 017-752-07 AYON GREGORIO & RAMONA H/W JT 529 MANZANA ST WATSONVILLE CA 95076 $534.11 017-752-08 FARIAS FRED & SONIA H/W JT 533 MANZANA ST WATSONVILLE CA 95076 $534.11 Exhibit "A"

017-752-09 DIAZ RAFAEL & IRMA ASTRIDA H/W JT 537 MANZANA ST WATSONVILLE CA 95076 $534.11 017-752-10 VARGAS FERNANDO H/W JT ALL AS TC ETAL 541 MANZANA ST WATSONVILLE CA 95076 $534.11 017-752-11 BROWN PRISCILLA T 1310 AMAYA CT WATSONVILLE CA 95076 $534.11 017-752-12 DELATORRE ROGELIO & ZENDI 546 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-752-13 LIPARI DAWNA M U/W 542 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-752-14 RAMIREZ GIDGET R & ARTHUR W/H CP RS 538 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-752-15 GUERRERO ONESIMO & LUCINA 534 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-752-16 SANDOVAL EDGAR M H/W JT ETAL 530 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-752-17 CANTU HECTOR B & ANGELICA O H/W JT 526 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-752-18 HOEHN KATHLEEN DENISE S/W 522 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-752-19 BARRIOS TED & VERONICA H/W JT 518 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-752-20 LOPEZ YOLANDA MARIA S/W 514 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-752-21 CARBAJAL JAVIER 510 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-752-22 MURSHED YOUSEF A 506 CIRVELO ST WATSONVILLE CA 95076 $534.11 017-753-02 VASQUEZ FRANCISCO J H/W CP RS ETAL 505 CEREZE ST WATSONVILLE CA 95076 $534.11 017-753-03 VICTORY DANILO H & LEONIDA T 509 CEREZE ST WATSONVILLE CA 95076 $534.11 017-753-04 CHAVEZ MIGUEL 513 CEREZE ST WATSONVILLE CA 95076 $534.11 017-753-05 GODINEZ JOSE & YANED 517 CEREZE ST WATSONVILLE CA 95076 $534.11 017-753-06 RUIZ SERAFIN M/M SS 521 CEREZE ST WATSONVILLE CA 95076 $534.11 017-753-07 JIMENEZ JAMES & PATRICIA H/W JT 525 CEREZE ST WATSONVILLE CA 95076 $534.11 017-753-08 ROCHA ARTURO 529 CEREZE ST WATSONVILLE CA 95076 $534.11 017-753-09 FERNANDEZ SANDRA W/H JT ETAL 533 CEREZE ST WATSONVILLE CA 95076 $534.11 017-753-10 PULIDO RUBEN & VANESSA 537 CEREZE ST WATSONVILLE CA 95076 $534.11 017-753-11 MENDOZA GILBERTO & JANET H/W JT 541 CEREZE ST WATSONVILLE CA 95076 $427.29 017-753-12 CADENA FRANCISCO 545 CEREZE ST WATSONVILLE CA 95076 $427.29 017-753-13 DISCENA ANDREW B 468 21ST AVE SAN FRANCISCO CA 94121 $427.29 017-753-14 GARCIA JOSE LUIS YANEZ 106 MARCELA DR WATSONVILLE CA 95076 $427.29 017-753-15 YOSHII MARK H & DOMINIQUE R H/W JT 102 MARCELA DR WATSONVILLE CA 95076 $427.29 017-753-16 GUTIERREZ J JESUS DELGADO 550 SECOYA ST WATSONVILLE CA 95076 $427.29 017-753-17 MISTRY SHAUNAK H/W CP RS ETAL 24 TARYN CT SCOTTS VALLEY CA 95066 $427.29 017-753-18 LEGIONS TERRY U/W 542 SECOYA ST WATSONVILLE CA 95076 $427.29 017-753-19 ULLOA EDUARDO RAMIREZ 538 SECOYA ST WATSONVILLE CA 95076 $534.11 017-753-20 MARTIN SALVADOR JR & ARIANA O 534 SECOYA ST WATSONVILLE CA 95076 $534.11 017-753-21 LOVATO HECTOR M/M SS AS JT ETAL 530 SECOYA ST WATSONVILLE CA 95076 $534.11 017-753-22 REYES NICANOR R & NANCY P H/W JT 526 SECOYA ST WATSONVILLE CA 95076 $534.11 017-753-23 LONGORIA RAYMOND & MARIA F H/W JT 522 SECOYA ST WATSONVILLE CA 95076 $534.11 017-753-24 RUIZ BRENDA M/W SS 518 SECOYA ST WATSONVILLE CA 95076 $534.11 017-753-25 WHITE LEON & ALISHA 514 SECOYA ST WATSONVILLE CA 95076 $534.11 017-753-26 TORRES GUILLERMO & EVA G H/W JT 510 SECOYA ST WATSONVILLE CA 95076 $534.11 017-753-27 LODDER STEPHEN C S/M TC ETAL 506 SECOYA ST WATSONVILLE CA 95076 $534.11 017-754-02 SOWARDS STACEY L S/W AS JT ETAL 505 SECOYA ST WATSONVILLE CA 95076 $534.11 Exhibit "A"

017-754-03 ARELLANO MARIO R 509 SECOYA ST WATSONVILLE CA 95076 $534.11 017-754-04 GONZALEZ DAVID LOMELI & ROSARIO H/W JT 513 SECOYA ST WATSONVILLE CA 95076 $534.11 017-754-05 ALVARADO PETE JR & BLANCA 517 SECOYA ST WATSONVILLE CA 95076 $534.11 017-754-06 CORTEZ ENRIQUETA S TRUSTEE 521 SECOYA ST WATSONVILLE CA 95076 $534.11 017-754-07 MURAKAMI BRIAN A & CIONE 112 NANCY CT WATSONVILLE CA 95076 $534.11 017-754-08 FERNANDEZ ANGEL & MARIA H/W JT 529 SECOYA ST WATSONVILLE CA 95076 $534.11 017-754-09 NUNEZ JOSE A & MARIA D H/W JT 533 SECOYA ST WATSONVILLE CA 95076 $534.11 017-754-10 HERNANDEZ ALBERTO & HILDA H/W JT 537 SECOYA ST WATSONVILLE CA 95076 $534.11 017-754-11 MAGANA AURORA G U/W 541 SECOYA ST WATSONVILLE CA 95076 $534.11 017-754-12 GARCIA JESUS RUIZ H/W JT ETAL 545 SECOYA ST WATSONVILLE CA 95076 $534.11 017-754-13 ZARAGOZA JOSE 549 SECOYA ST WATSONVILLE CA 95076 $534.11 017-754-14 ROBBERT APRIL A 411 LOMA AVE CAPITOLA CA 95010 $534.11 Total Assessment FY 2022/2023 $146,475.36
Assessment Amount determined as follows:
$534.11 per Single Family
Dwelling Unit
$427.29 per Town Home
$147.34 per Apartment** ** APN 017-551-23 Cost includes amount for 135 apartment units Exhibit "A"

Reso No. (CM)
C:\Program Files\eSCRIBE\TEMP\1555835517\1555835517,,,Resolution - Gonzales St Confirming Diagram and Assessment FY22-

23.docx
ri 6/23/2022 3:06:01 PM SWZ ______ TV ______ PCS ______ 1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

CONFIRMING DIAGRAM AND ASSESSMENT AND LEVYING
ASSESSMENT FOR FISCAL YEAR 2022-2023 FOR THE GONZALES

STREET ALLEYWAY LANDSCAPING AND LIGHTING MAINTENANCE

ASSESSMENT DISTRICT
Assessment District No. PK-94-1
(Pursuant to the Landscaping and Lighting Act of 1972)

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

1. That pursuant to Chapter 3 (California Streets and Highways Code Sections 22620 et seq.) of the Landscaping and Lighting Act of 1972, the City Council directed the City Public Works and Utilities Assistant Director, Engineer of Work for the Gonzales Street Alleyway Landscaping and Lighting Maintenance Assessment District No. PK-94-1, to prepare and file an annual report for Fiscal Year 2022-2023.

2. That the Council on April 26, 2022, adopted Resolution No. 80-22 (CM) directing the filing of the 2022-2023 Annual Engineer's Report for Assessment District No.

PK-94-1.

3. That the Council on May 24, 2022, adopted Resolution No. 102-22 (CM), accepting the Engineer’s Report.

4. That the Council on May 24, 2022, adopted Resolution No. 103-22 (CM), a Resolution of Intention to levy and collect assessments within the assessment district for Fiscal Year 2022-2023 and set a public hearing to be held on June 28, 2022. The public hearing will be held at the meeting place of the City Council, located in the City Council

Reso No. (CM)
C:\Program Files\eSCRIBE\TEMP\1555835517\1555835517,,,Resolution - Gonzales St Confirming Diagram and Assessment FY22-

23.docx
ri 6/23/2022 3:06:01 PM
2 Chambers, 275 Main Street, (4th) Fourth Floor, Watsonville, California. Notice of the hearing was given in the time and manner required by law.

5. That at the public hearing, the City Council afforded to every interested person an opportunity to protest the annual report either in writing or orally, and the City Council has considered any such protest.

6. That the City Council hereby confirms the annual report of the Engineer of Work accepted by Resolution No. 102-22 (CM) on May 24, 2022.

7. That the City Council hereby confirms the Diagram and Assessment and hereby levies the assessment set forth on Exhibit “A,” attached herein and incorporated hereto, for Fiscal Year 2022-2023.
*******************************

7 Exhibit "A"

Gonzales St
Assessment Roll
For the 2022/2023 Fiscal Year
Annual Maintenance
APN Property Owner Owner Address Assessment
Amount
016-143-01 MARTIN TROY M & BRITTANY m 11 WEST HIGH ST WATSONVILLE CA 95076 $ 35.82 016-143-02 DAVILA JOSE JESUS LARA 855 FREEDOM BLVD WATSONVILLE CA 95076 $ 35.82 016-143-03 COLEY DEAN E & SANDRA L CO-TRUSTEE 845 FREEDOM BLVD WATSONVILLE CA 95076 $ 35.82 016-143-04 BONITA STEVEN P O BOX 448 WATSONVILLE CA 95077 $ 35.82 016-143-05 ROMERO RALPH L & SUSAN L H/W JT 833 FREEDOM BLVD WATSONVILLE CA 95076 $ 35.82 016-143-07 FEHR GERALD K & TERESA K TRUSTEES 95 LILLY WAY WATSONVILLE CA 95076 $ 35.82 016-143-08 SANCHEZ DANIEL H/W JT ETAL 819 FREEDOM BLVD WATSONVILLE CA 95076 $ 35.82 016-143-09 CASA COURT APPOINTED SPECIAL ADVOCATES SC CO 813 FREEDOM BLVD WATSONVILLE CA 95076 $ 35.82 016-143-10 EXEX LLC
9909 HUENNEKENS St
STE 225 SAN DIEGO CA 92121 $ 26.88
016-143-11 EXEX LLC P O BOX 207 WATSONVILLE CA 95077 $ 35.82 016-143-12 MUNOZ DAVID U/M 322 BRENNAN WATSONVILLE CA 95076 $ 35.82 016-143-13 STRATMAN DAVID C & COLETTE W 1871 ORANGE GR DR SAN JOSE CA 95124 $ 35.82 016-143-17 EXEX LLC P O BOX 207 WATSONVILLE CA 95077 $ 35.82 016-143-19 MC FARREN TODD D & YOLANDA R H/W 24 GONZALES AVE WATSONVILLE CA 95076 $ 35.82 016-143-21 RHOADS ERNEST B & LAUREL A H/W JT 32 GONZALES ST WATSONVILLE CA 95076 $ 35.82 016-143-24 RADOVICH BARNEY M & MARLENE L TRUSTEES 925 FREEDOM BLVD WATSONVILLE CA 95076 $ 35.82 016-143-25 JIMENEZ ROSALINA N 827 FREEDOM BLVD WATSONVILLE CA 95076 $ 35.82 016-143-26 WATSONVILLE CITY OF 275 Main St, Suite 400 WATSONVILLE CA 95076 $ - Total $ 600.00
Exhibit "A"

6/23/2022 5:20:46 PM
C:\Program Files\eSCRIBE\TEMP\66c62444-8675-497b-ac86-b3b37fa5600a\17204557400Report - Recommended Budget for FY 22-23 .docx
Agenda Report
MEETING DATE: Tuesday, June 28, 2022
TO: City Council
FROM: ADMINISTRATIVE SERVICES DIRECTOR CZERWIN
SUBJECT: RECOMMENDED BUDGET FOR FISCAL YEAR 2022-23 AND

RELATED ACTIONS
STATEMENT OF ISSUES:

Section 1103 of the City’s Charter requires that at least 30 days prior to the beginning of the fiscal year, the City Manager present to the City Council the proposed budget for the following fiscal year. Sections 1104 and 1105 further outline the public hearing process and actions the Council may take before adopting the budget prior to the beginning of the fiscal year on July 1.

On June 14, the Council held first of two noticed public hearings regarding the Fiscal Year 2022-23 budget. Today is the second public hearing.

RECOMMENDED ACTION:
1) Pass an ordinance increasing the compensation for each member of the City Council from $607.75 to $638.14, per month, as permitted by Government Code Section 36516; and
2) Pass an uncodified ordinance instructing Santa Cruz County to levy and collect property tax on taxable property within the City of Watsonville for fiscal year July 1, 2022 to June 30, 2023 at the levy rate of 0.077%, and allocating proceeds to the Retirement Fund; and 3) Approve a resolution establishing the total annual appropriations pursuant to California State Constitution Article XIII-B for the Fiscal Year 2022-23 (Gann Limit).

Staff recommends the Council take the following actions acting in its capacity as the City Council for the City of Watsonville and in its capacity as the Successor Agency of the former Redevelopment Agency of the City of Watsonville:
4) Approve a resolution adopting the final budget for the Fiscal year 2022-2023, providing for certain transfer of funds, and approving the Five-Year Capital Improvement Program for Fiscal Years 2022-23 to 2026-27; and
5) Approve a resolution finding that the use of former Redevelopment Agency Funds and other assets generated from the Watsonville 2000 Redevelopment project area for the purpose of improving, increasing, and preserving the community’s supply of low and moderate housing outside the project area will benefit the project area; and

6/23/2022 5:20:46 PM
C:\Program Files\eSCRIBE\TEMP\66c62444-8675-497b-ac86-b3b37fa5600a\17204557400Report - Recommended Budget for FY 22-23 .docx
6) Approve a resolution finding that the use of funds from the low and moderate-income housing asset fund for planning and general administrative costs is necessary for the purpose of producing, improving, and preserving the community’s supply of low and moderate-income housing.

DISCUSSION:

The City Council holds at least two public meetings to consider and adopt the annual City budget.

At the first meeting, on June 14, 2022, the Council received a presentation on the budget, and introduced, for first reading only, two related ordinances: one increasing Council Member and Mayor compensation by the amount permitted by the Government Code; and one instructing the County to levy and collect certain property taxes. Today is the second public meeting hearing the Fiscal Year 2022-23 budget and related items.

Budget Highlights
The Budget for Fiscal Year FY 2022-23 for the City of Watsonville totals $211,341,192 as summarized in Table 1 below.

Table 1: FY 2022-23 Budget Summary
Watsonville’s finances remain on a steady path. For the most part, our revenue increases are able to match our expenditure increases. The high levels of inflation seen in the economy at large are impacting limited areas of our budget, both revenue and expenses. We do continue to see large year-over-year increases in CalPERS retirement costs, although those are General
Funds
Special
Revenue
Funds
Debt
Service
Enterprise
Funds
Internal
Service
Funds
Private
Trust
Fund
Total all
Funds
Projected Resources 2022-23
Revenues 48,560,784 18,997,561 - 60,928,894 20,222,676 4,623,883 153,333,799 Transfers In 5,821,244 143,195 814,198 150,761 - - 6,929,398 Total Gross Resources 54,382,028 19,140,756 814,198 61,079,655 20,222,676 4,623,883 160,263,197 Interfund Transfer Adjustment (29,454,991)
Total Net Resources 130,808,206
Projected Expenditures
Operations 51,301,895 12,997,230 - 50,652,222 20,196,676 1,327,492 136,475,516 Capital 12,775,325 17,489,680 - 32,347,499 1,658,867 - 64,271,371 Transfers Out 180,956 4,703,184 - 435,817 - 1,609,441 6,929,398 Debt Service - - 814,198 859,695 - 1,686,950 3,360,843
Total Gross Uses 64,258,176 35,190,094 814,198 84,295,233 21,855,543 4,623,883 211,037,127 Interfund Transfer Adjustment (29,454,991)
Total Net Uses 181,582,136
Surplus / (Shortfall) (9,876,147) (16,049,338) - (23,215,578) (1,632,867) - (50,773,931)

6/23/2022 5:20:46 PM
C:\Program Files\eSCRIBE\TEMP\66c62444-8675-497b-ac86-b3b37fa5600a\17204557400Report - Recommended Budget for FY 22-23 .docx
expected to begin decreasing in coming years. We also continue to have a backlog of unfunded capital needs and the inability to expand service levels in some areas requested by the public and our departments. The steady approach we have taken to budgeting in recent years has paid off in that our funds have the reserves needed to manage future economic shocks should they occur. There is also room for optimism in future years as the peak of CalPERS costs seems to be approaching. The Fiscal Year 2022-23 budget presented today reflects a fairly status quo budget with few changes from the previously proposed two-year budget presented last year.

General Fund
The General Fund is projected to increase operating expenditures and revenues in the next years and spend down on accumulated Fund Balance. Last year’s biennial budget proposed a spend down of previous years’ Fund Balance with a commitment to capital improvements at Ramsay park. The proposed budget is balanced operationally and results in proposed ending fund balances that will meet the City’s policy of 20% reserves. There are some operational changes in some departments; most being entirely or partially funded by their own revenue changes. Other departments are being held mostly flat, aside from cost increases to salary and benefits, materials and contracts.

Revenues:

Property Tax- We are budgeting base property tax to be basically flat compared to the estimated FY 2021-22 collections for a total of $13,544,545. Property taxes are collected based on County Assessor rolls that were formally closed in January of 2022. According to county projections, our overall assessed value is likely to rise by approximately 4.3%.

However, that is expected to be offset by a reduced residual payment from former redevelopment areas due to increases in recognized obligation payment schedules. That reduction is a temporary situation due to new recognized obligations and we expect that in future years the residual receipts will increase once again.

Sales Tax – Sales tax is our revenue source most impacted by the current inflationary environment. It is expected to be essentially flat from predicted year end FY 2021-22 numbers. However, that is nearly 10% above the previously proposed FY 2022-23 budget.

What we are seeing is a full recovery to pre-pandemic levels in all categories of sales tax.

Furthermore, as expected, there are increases in both fuel and auto and transportation categories as prices have increased due to supply chain and world-wide events. This is also why we are projecting level amounts for next fiscal year as hopefully prices in both of those categories stabilize.

Sales Tax is 25% of General Fund revenue. The City also is supported by sales tax in a number of special funds including the Measure R Library, the Measure Y Public Safety Sales tax, and Measure D transportation. Each of these funds is likewise impacted by similar assumptions discussed later in this report.

Hotel Tax – Hotel tax is a much smaller percentage of the City’s overall revenue mix, but was the revenue stream most impacted by the pandemic with FY 2020-21 receipts being only 65% of FY 2018-19 receipts. FY 2021-22 is on track to be our highest earning year yet despite the fact that two of our hotels were repurposed during the pandemic and are no longer serving as

6/23/2022 5:20:46 PM
C:\Program Files\eSCRIBE\TEMP\66c62444-8675-497b-ac86-b3b37fa5600a\17204557400Report - Recommended Budget for FY 22-23 .docx
hotels. During that time, the new hotel on Lee Road opened and is more than making up for that loss. We assume that FY 2022-23 will reflect slight growth over FY 2021-22 levels.

Utility User Tax- Utility User Tax represents about 8.2% of General Fund revenues. This tax stream tends to be more stable as it is a tax on telecommunication services, electricity, gas and water. This revenue has been basically flat in the current year and we are expecting normal growth of 2% in the budget year.

Community Development Department Revenues – The Community Development Department charges fees for many of its services including inspections, plan check, and permit issuance.

The department has been incredibly busy recently and their revenues reflect that. Their FY 2021-22 revenues are expected to be their highest year yet, topping over $2 million.

Revenues in this department can be fairly volatile and are completely dependent on the development happening in the community, so while we are assuming an increase in revenue from the prior proposed FY 2022-23 budget, we are not assuming receipts will be quite as high as they are this year. The revenue increase will be used to fund some staffing and material increases in the department to help keep up with the demand for services. Should revenues fall, the department will also be expected to decrease expenditures.

Parks and Community Services Revenues – The Parks and Community Services Department has worked hard this year to restore its staffing and service offerings to the community after difficult pandemic times. However, due to continued use of the Ramsay Park Family Center as a COVID testing site, and now construction taking place in that area, they have not been able to completely return to their normal course offerings. We are looking forward to the return of special events and more sports and recreation offerings this upcoming year, but are keeping revenue expectations moderate and in line with pre-pandemic levels.

Other General Fund revenues make up smaller portions of the overall revenues and we are projecting fewer fluctuations. This includes items like business licenses and parking permits, franchise fees, lease revenues, and interest. Each item was analyzed on its own and by reviewing past experiences. Two items of note; first, the Finance Department recently completed an updated Cost Allocation Plan study which reviewed and updated how general fund administrative services are recovered by other funds as it is common practice to review and update these revenues every five years. Second, the transfers into the General Fund include a $1 million one-time pass-through item as part of the newly recognized redevelopment obligations as discussed above under property taxes. This has a corresponding one-time million-dollar expense and neither is expected to repeat in future years. Table 2 below summarizes all the revenue impacts described above.

6/23/2022 5:20:46 PM
C:\Program Files\eSCRIBE\TEMP\66c62444-8675-497b-ac86-b3b37fa5600a\17204557400Report - Recommended Budget for FY 22-23 .docx
Table 2: General Fund Revenue Summary
Expenditures
As discussed above, this is for the most part a status quo budget. This means that increases or decreases in expenditures are due to natural changes in costs due to contracts, benefits, or market prices but do not reflect a policy change in the way the City operates. The few exceptions or significant changes in costs are described below.

Salaries– Salaries, including contractual increases with existing employees and bargaining groups, makeup 50% of General Fund operating expenditures and therefore represent the greatest increase in costs. There are some department-specific changes to positions and salaries to be discussed in the departmental section below.

Unfunded Actuarial Liability (UAL) – The City’s UAL increases continue to be a challenge. In FY 2022-23 UAL costs will increase by $500,000. UAL costs will represent 12% of the General Fund operating budget. UAL costs are expected to continue to rise much faster than our revenues in each of the next three fiscal years, peaking in FY 2024-25. After that, we expect to see a gradual decline in UAL costs as both the effects of major policy changes in CalPERS begin to show their effects and as the results of the 21% investment returns from FY 2020-21 begin to roll in. However, returns in FY 2021-22 are rumored to be negative and will have a corresponding negative effect in future years. Nevertheless, we expect the UAL to FY 2022-23 FY 2022-23
Revenues Actuals Projection
Previously
Proposed
Proposed
Budget
Property Tax 12,585,390 13,433,085 13,665,969 13,544,545 Sales Tax 12,817,984 13,432,874 12,484,443 13,680,442
Utility 3,993,803 4,132,451 4,256,424 4,215,100
Hotel 766,626 1,173,440 1,208,643 1,400,000
Transfer In 4,711,893 4,126,938 4,146,299 5,631,717
Other Revenues 6,300,269 4,171,123 5,067,229 4,366,948
41,175,965 40,469,911 40,829,008 42,838,752
CDD 1,628,324 2,044,748 1,801,000 1,959,056
Police 915,331 1,278,695 1,322,020 1,597,100
Fire 1,017,949 953,906 489,051 509,592
PCS 355,906 847,836 1,062,500 974,250
PW 149,947 274,493 304,321 391,785
Other 2,710,018 2,859,595 2,997,522 3,178,954
Total GF Revenue 47,953,440 48,729,184 48,805,422 51,449,489 FY 2020-21 FY 2021-22

6/23/2022 5:20:46 PM
C:\Program Files\eSCRIBE\TEMP\66c62444-8675-497b-ac86-b3b37fa5600a\17204557400Report - Recommended Budget for FY 22-23 .docx
have a decreasing impact on our budget in future years. Meanwhile, we continue to analyze ways to smooth out the impact of the rises in the upcoming years. See chart 1 for the estimated General Fund UAL costs in the next ten years as percentage of projected General Fund Revenues.

Chart 1: Projected General Fund UAL as a Percentage of Revenues Other Benefits –Normal retirement costs will see some interesting and hard to predict changes in future years. Generally, we see this cost ever so slightly declining as members of the classic retirement plan retire and are replaced by newer PEPRA employees with lesser retirement benefits. However, the 21% investment returns in CalPERS in FY 2020-21 triggered a policy change which will lower their presumed discount rate starting in FY 2023-24 which will in turn increase normal costs for all retirement groups that same year. Other salarybased benefits such as Social Security, and Medicare are expected to rise at similar rates to salaries. The City of Watsonville has fared better than most cities in relation to health benefits in recent years with little to no increases.

Other non-position costs – Other citywide non-position impacts to the General Fund are minimal. They include increases for Water, Sewer, and Solid Waste services according to the utility rate schedule, increases to City Attorney, fuel, and fleet costs. Other items include increases to our JPA contracts with the County for 911 and Animal Shelter services. Here you will also see the $1 million pass through expense as described above.

6/23/2022 5:20:46 PM
C:\Program Files\eSCRIBE\TEMP\66c62444-8675-497b-ac86-b3b37fa5600a\17204557400Report - Recommended Budget for FY 22-23 .docx
Table 3: General Fund Expenses by Category
Select Department Changes
All departments are impacted by the citywide impacts described above. In addition, several departments are proposing changes that are highlighted and described below.

Police Department – We are adding two Police Officer positions to the Police Department budget. PVUSD recently agreed to expand and return the School Resource Officer (SRO) program at both Pajaro Valley and Watsonville High Schools. One of those positions was added back to the Police Department budget at mid-year with the reinstatement of the pilot program. The second requested SRO position we are adding back now. This is cost neutral as it is paid for by revenue from the school district. The second officer position is an unfunded position, meaning the department has the position authority to hire, but not the funds. This is done in acknowledgment that the Police Department has regular turnover among its police officer positions and that there is a long lead time (often 18 months) between recruitment and when a new officer is able to serve on patrol due to training times. By increasing the department’s position count it will allow them to recruit more and compensate for one or two positions that are vacant at any given time. With the addition of these two positions the department is still one police officer position lower than pre-pandemic.

FY 2021-22 FY 2022-23 FY 2022-23
Expenditures Actual
Revised
Budget
Previously
Proposed
Proposed
Budget
SALARY 22,824,534 24,025,297 25,022,356 25,257,070
CalPERS UAL 4,347,908 5,553,068 6,069,875 6,055,594
CalPERS Normal Cost 2,610,413 2,987,961 3,122,410 2,989,986 OTHER BENEFITS 4,776,180 4,317,690 4,412,076 4,528,306
Total Salary and Benefits 34,559,035 36,884,016 38,626,717 38,830,956 Utilities 400,878 1,237,626 1,250,492 1,289,720
Contract Services 4,961,563 6,654,809 6,619,698 7,056,039 Materials and Supplies 671,025 912,288 925,188 1,111,527 Other Charges 2,325,997 727,937 704,183 2,215,295
Transfers Out 292,561 273,391 228,134 180,956
Capital 569,803 750,000 845,000 765,000
Carryforward 565,530 2,787,766
One-time Caital 3,053,957 4,207,483 4,207,483
Total Expenditures 43,780,862 51,059,554 53,406,895 58,444,742 FY 2020-21

6/23/2022 5:20:46 PM
C:\Program Files\eSCRIBE\TEMP\66c62444-8675-497b-ac86-b3b37fa5600a\17204557400Report - Recommended Budget for FY 22-23 .docx
Fire Department – The Fire Department is adding a civilian Fire Inspector position. The department is looking to add more consistency to its Fire Inspection program in line with the outside analysis of department operations conducted earlier this year. The cost of the position is expected to be partially offset by increases in inspection revenues.

Parks and Community Services Department- The Parks Department while not proposing many changes to its operating budget is proposing changes to some of its staffing in order to better recruit and retain staff and therefore provide better consistency and quality of services to the community. The department is increasing the minimum salary at which it will recruit temporary employees. It is also proposing to convert some of its temporary positions into full time benefitted positions providing both better employment and growth to our employees and a higher level of service to our community.

General Government- In this area we are seeing an increase to our City Attorney costs. As the City transitions from a model with essentially a full-time on-site attorney, to a contract, model we are seeing a rise in costs. This was somewhat expected. Both the departments and the City Attorney are working together to control the growth in this area.

Community Development Department – As described above the revenue section, the Community Development Department continues to see a high demand for its services. To meet that demand the department is moving half of a Principal Planner position back into its budget and is proposing to fund a temporary Assistant Planner position. All of the increases of this department are paid for with their own expected revenue increases. If their revenues or demand for services declines they will be expected to reduce their budget accordingly.

Public Works- The General Fund side of the Public Works Department includes costs associated with building and facility maintenance and costs related to streets and sidewalks not covered by special revenue funds. We have provided some increases in the facilities and maintenance area as our aging buildings and facilities require investment to help prevent even more expensive repairs in the future. We have also increased some contracts used for trail and slough maintenance.

6/23/2022 5:20:46 PM
C:\Program Files\eSCRIBE\TEMP\66c62444-8675-497b-ac86-b3b37fa5600a\17204557400Report - Recommended Budget for FY 22-23 .docx
Table 4: General Fund Operating Budget by Department
Five Year Outlook
Our five-year projection assumes no new programmatic changes. It is a snapshot of “If we were to continue doing what we are doing, what would it cost.” To that end it takes the budget described above and adds some assumed inflationary factors to both the revenues and expenses. This of course will be refined and updated each year as information becomes available, as economic conditions change, as new priorities arise, and as decisions are made to keep the City’s budget in balance. Table 5 reflects the General Fund’s five-year outlook considering the changes and assumptions described above.

Table 5: General Fund Five-Year Outlook
While the prospect of a nearly $1.5 million deficit in the next two years may seem alarming, it is primarily driven by changes in CalPERS UAL costs as described above. That the outlook in years four and five is positive provides some real hope for the future. As discussed above FY 2022-23 FY 2022-23
Expenditures Actual
Revised
Budget
Previously
Proposed
Proposed
Budget
Police 18,570,928 20,195,912 21,141,109 21,157,804
Fire 8,060,767 7,956,138 8,306,447 8,450,550
PCS 3,426,769 5,366,337 5,622,022 5,778,605
General Gov't 3,293,660 3,723,235 3,564,876 3,977,256
Non Dept 5,801,274 2,930,698 2,772,985 3,974,921
CDD 2,302,633 2,916,910 2,909,995 3,076,486
Finance 1,570,314 1,711,099 1,778,654 1,753,650
PW 1,299,439 1,625,627 1,668,240 1,900,571
Library 542,428 585,686 590,085 614,646
IT (7,702) -
Total Depts 44,860,510 47,011,642 48,354,413 50,684,489 Capital 569,803 4,299,662 5,052,482 7,760,249
Total Expenditures 45,430,313 51,311,304 53,406,895 58,444,738 FY 2020-21 FY 2021-22
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27
Revenue 51,449,489 51,706,049 53,276,228 54,777,452 56,372,690 Expense* 51,449,489 52,626,547 53,750,174 54,162,976 55,230,259 Net Difference (0) (920,499) (473,946) 614,475 1,142,431 Carryforward 2,787,766
Ramsay 4,207,483
6,995,249
*Capital Funded by available Fund Balance

6/23/2022 5:20:46 PM
C:\Program Files\eSCRIBE\TEMP\66c62444-8675-497b-ac86-b3b37fa5600a\17204557400Report - Recommended Budget for FY 22-23 .docx
changes in UAL costs are driving both the deficit and the savings projections in the five-year outlook. As we continue to explore and analyze ways to smooth out or lower our costs in the next few years, including perhaps the use of $1 million still on reserve for this purpose, I am optimistic that the City can achieve balanced budgets in future years without major reductions in costs and hopefully lead to an increased capacity to serve our community and address currently unfunded needs.

Select Special Revenue and Internal Service Funds
Library Fund
The Library fund is supported through a county special sales and use tax and a joint allocation of property tax from the County. The County has proposed an extension to the current JPA agreement for Fiscal Year 2022-23 which will likely result in an increase in revenue driven by sales tax patterns described above. The department is not proposing a significant operational change at this time. However, they are also proposing to transition temporary and part time positions to full time when opportunities arise from turnover. The fund is likely to add to its fund balance in FY 2022-23 and is looking to use some of that fund balance in future years for building renovations.

ARPA
The entire $18.2 million American Rescue Plan Act (ARPA) allocation to the City of Watsonville was authorized on September 14, 2021, therefore the public will not see the full $18.2 million included in this budget. We continue to follow the plan adopted last September and appropriate projects and contracts as needed. What you will find in this budget is carryforward of already begun ARPA projects, new appropriation for streets and safety projects, and a request for three positions. ARPA guidelines allow for the rehiring of government positions eliminated due to the pandemic. We have since used that money to restore a Recreation Supervisor position in the Parks and Community Services Department and are requesting to fund an additional Accountant II in the Finance Department and an Administrative Assistant II in the City Manager Department. Both departments have yet to restore higher level positions eliminated during the FY 2020-21 budget process and are finding their current staff being stretched thin as other departments and services have been restored.

The costs of all three positions are assumed to move back into the General Fund in year FY 2024-25 of the five-year plan.

Gas Tax, SB, and Measure D
Despite the increase in gas prices, both the Gas Tax and SB1 funds will not see dramatic increases in revenues and formulas as both funds are built on a fixed price per gallon and not a percentage of sales. In fact, there is reason to believe that funding from these measures may decrease in future years with the increasing presence of electric vehicles. Measure D is somewhat different as it is based on a local county sales and use tax measure and therefore will increase with sales tax increases described above. The City now uses Gas Tax less for major construction projects and more for regular road maintenance and repairs. We have found that using our own crews and equipment allows us to be more responsive and efficient than contracting this workout. The project plan for SB1 and Measure D can be found in the capital plan. Both funds are carrying forward past projects not yet completed in addition to requesting funding for new projects. The transportation arm of the Public Works Department

6/23/2022 5:20:46 PM
C:\Program Files\eSCRIBE\TEMP\66c62444-8675-497b-ac86-b3b37fa5600a\17204557400Report - Recommended Budget for FY 22-23 .docx
has been very successful in recent years in receiving grants for transportation projects in addition to these special revenue funds.

Measure Y (formerly G)
In March 2020, Watsonville voters overwhelmingly voted to pass Measure Y to renew the existing half-cent public safety sales and use tax. Tax receipts have been higher than expected this fiscal year, and as described above, we are expecting them to level off next year.

All three departments made significant operational restorations last year and this coming year and are not proposing significant changes. Police and Fire are proposing to use their accumulated fund balance to invest in station repairs and special equipment for their departments.

Innovation & Technology – Since the creation of the IT Internal Service Fund, the department has had a number of position vacancies and therefore was not able to complete all budgeted projects and accumulated a fund balance. Going into the next fiscal year, the department is now near full staffing including a new director. The department is expected to work on a number of important projects next year including updating the audio and visual capabilities in the City Council Chamber and Community Rooms.

MSC (Fleet Management) – The Municipal Service Center or Fleet Management division was moved to its own internal service fund last year. Since then, this division has been perhaps the most impacted by inflation and supply chain issues. You will see significant increases to their fuel and supplies budget. They are funded by charging other departments for their services. This division is also under relatively new management and is implementing several software and operational changes to become more efficient and transparent to departments.

Table 6: Select Special Revenue and Internal Service Funds

6/23/2022 5:20:46 PM
C:\Program Files\eSCRIBE\TEMP\66c62444-8675-497b-ac86-b3b37fa5600a\17204557400Report - Recommended Budget for FY 22-23 .docx
Select Enterprise Funds
The Utility Enterprises of Wastewater, Water, and Solid Waste are proposing minimal changes to their operating budgets. Unlike the General Fund, much of the cost increases in the Utility enterprises are not driven by personnel but by the cost of capital, the costs of materials and supplies, and in the case of Solid Waste, the cost of disposal contracts. The Public Works and Utilities Department is proposing some internal reorganization of its administrative and engineering teams as a way to better track and allocate costs to each of the utilities.

The Airport fund is supported through three revenue streams, leasing of commercial properties, leasing of aviation hangars, and aviation fuel sales. The department is proposing minimal operational changes, as they are already a lean operation. You will see the increases in fuel costs reflected on both their expenditure and revenue side. They are expected to add to their growing fund balance in the next fiscal year in order to build reserves for future capital investments.

Table 7: Select Enterprise Funds
0250 -

LIBRARY
0262 -
ARPA FUNDAMERICAN
RELIEF
PLAN
0305 - GAS
TAX
0306 - SB
1 - GAS TAX

FUNDING
0310 -

SALES TAX

MEASURE Y
0312 -

MEASURE D
-

TRANSPOR
TATION
FUND
0760 - MSC

INTERNAL

SERVICE
FUND
0790 -

INFORMATI
ON &

TECHNOLO
GY ISF
Projected Resources 2022-23
Revenues 4,065,849 - 1,314,339 955,000 5,184,351 971,903 3,411,647 3,410,335 Transfers In - - - - - - - -
Total Gross Resources 4,065,849 - 1,314,339 955,000 5,184,351 971,903 3,411,647 3,410,335 Projected Expenditures
Operations 3,736,643 293,208 756,936 - 4,661,658 - 3,411,647 3,410,335 Capital 10,000 4,227,929 900,992 1,793,764 2,268,304 3,824,243 - 1,632,867 Transfers Out 159,283 - - - 286,307 - - -
Debt Service - - - - - - - -
Total Gross Uses 3,905,926 4,521,137 1,657,928 1,793,764 7,216,269 3,824,243 3,411,647 5,043,202 Surplus / (Shortfall) 159,923 (4,521,137) (343,589) (838,764) (2,031,918) (2,852,340) - (1,632,867) Projected Fund / Cash Balance 6/30/2022 1,266,693 17,752,778 553,816 1,818,282 3,323,825 3,264,859 133,673 2,136,620 Projected Fund / Cash Balance 6/30/2023 1,426,616 13,231,641 210,227 979,518 1,291,907 412,519 133,673 503,753

6/23/2022 5:20:46 PM
C:\Program Files\eSCRIBE\TEMP\66c62444-8675-497b-ac86-b3b37fa5600a\17204557400Report - Recommended Budget for FY 22-23 .docx
Five-Year Capital Improvement Plan
The Five-Year Capital Plan helps the City prioritize its funding and planning for longer term structural needs. The requests for carryforward this year are larger than the requests for new projects. Carryforwards are projects that have been authorized in the past but have yet to be completed for various reasons. This year, some of those reasons included staff shortages, supply chain issues, and cost increases. This Capital Improvement Plan includes some major funding commitments that will have a lasting impact on the Watsonville community.

The General Fund share of our capital plan is comparatively little and generally pays for facility maintenance. Next year we are proposing to continue maintenance projects to a number of park facilities along with a continued commitment to the revitalization of Ramsay Park. We are also conducting a facilities assessment to help inform future CIP programs.

In the Utilities funds, engineering staff has had a busy year in getting over 11 total projects in the Water and Sewer enterprise fund CIP through the design process. Many of these projects will start construction at the end of the fiscal year or beginning of next year, all of which have a total construction value of over $40,000,000. Highlights include:
 Green Valley Rd. and Freedom Blvd. Water and Sewer Improvements $3,742,000 beginning construction breaks ground June 27th.  Zone 2 Water Reservoir $10,000,000 in design. Recently awarded $5,000,000 IWRM grant
0710 -
WASTE
WATER
0720 -
WATER
0730 -

AIRPORT
0740 -
SOLID
WASTE
0741 -

LANDFILL

CLOSURE
Projected Resources 2022-23
Revenues 17,068,157 23,094,698 4,203,780 16,480,409 -
Transfers In - - - - 150,761
Total Gross Resources 17,068,157 23,094,698 4,203,780 16,480,409 150,761 Projected Expenditures
Operations 15,675,261 15,356,433 4,052,802 15,337,009 150,761 Capital 8,947,019 18,238,344 60,000 1,682,904 3,419,232 Transfers Out 202,513 31,651 5,056 196,597 -
Debt Service 485,078 13,888 23,037 337,692 -
Total Gross Uses 25,309,871 33,640,316 4,140,895 17,554,202 3,569,993 Surplus / (Shortfall) (8,241,714) (10,545,618) 62,885 (1,073,793) (3,419,232) Projected Fund / Cash Balance 6/30/2022 10,806,713 26,958,860 201,585 4,956,979 3,960,291 Projected Fund / Cash Balance 6/30/2023 2,564,999 16,413,242 264,470 3,883,186 541,059

6/23/2022 5:20:46 PM
C:\Program Files\eSCRIBE\TEMP\66c62444-8675-497b-ac86-b3b37fa5600a\17204557400Report - Recommended Budget for FY 22-23 .docx
 WWTF Electrical System Hazard Mitigation Improvements Project $16,000,000  WWTF Levee Embankment Stabilization Project $2,200,000 recently awarded FEMA/CalOES HMGP grant
 Completed the decking/cover and concrete project at Corralitos Filter Plant.  PLC upgrade at Well 19 (complete) and Corralitos Filter Plant (expected completion August 2022)
 Zone 2 well installed (well housing and pump station expected completion in 22/23
 Hames Reservoir interior coating/seismic retrofit (expected completion June 2022)
 Sydney and Jehl Avenue sewer, storm, and water improvements totaling $1,328,000
The City’s Water Services crews have also replaced over 1.1 miles of aging water main throughout the City this fiscal year and are on target to meet that goal next fiscal year as well, with the main project planned being the Silver Leaf, Green Meadow, and Green Valley Road area water main replacement.

The Solid Waste team is conducting the studies necessary to complete the closing of the Phase III at the landfill and preparing to open Phase IV which we believe will be a more efficient way of providing this service to our residents as opposed to the transportation and contract costs required to haul our trash to Monterey. In addition, the Solid Waste team is excited about the prospect of our first electric collection vehicle partially funded through two grants totaling $550,000.

The Traffic division, funded through the gas tax, SB1, ARPA, Measure D, and grants is working on many projects. In particular they are looking forward to the construction of Freedom Blvd from Alta Vista Ave to Green Valley Rd. The work will include reconstruction of the roadway, including striping, pavement markings and signs; provisions for accessible sidewalks, installation of curb ramps and installation of a traffic signal at intersection of Freedom Boulevard and Sydney Avenue. They are also working on the design of Green Valley Road improvements from Freedom Blvd to the city limits. Improvements will include reconstruction of existing roadway, installation of a median island to encourage safer turning movements, removal and replacement of existing driveways and curb ramps that do not comply with existing accessibility standards, and restriping roadway to provide for bike lanes where none exist.

Unfunded Capital Needs
Despite a plan which expects to fund over $149 million of capital projects over the next five years, we still have over $37 million of unfunded capital projects. The majority of these are not for “wish list” items but for basic maintenance and updates to our facilities and equipment, and improvements to the City’s most used parks. We will continue to seek grants, financing opportunities, and other funds to invest in our capital assets.

Table 8: Capital Improvement Program by Funding Source

6/23/2022 5:20:46 PM
C:\Program Files\eSCRIBE\TEMP\66c62444-8675-497b-ac86-b3b37fa5600a\17204557400Report - Recommended Budget for FY 22-23 .docx
STRATEGIC PLAN:

The current balanced budget meets Strategic Plan goal Number 2 of fiscal health by presenting a balanced budget, preserving the General Fund Reserve, and looking ahead to ensure the long-term financial health of the City.

FINANCIAL IMPACT:

Appropriate Fiscal Year 2022-23 spending of $210,341,192.

ALTERNATIVE ACTION:

The City Council may direct staff to present different alternatives for the budget or make changes to the current recommendation.

ATTACHMENTS AND/OR REFERENCES (If any):
1) Proposed 2022-23 Budget:
https://cityofwatsonville.org/DocumentCenter/View/19029/2022-2023-Draft-Budget FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27
General Fund 4,972,483 1,333,000 1,270,000 205,000 135,000 Grants 177,952 5,204,518 - 730,000 1,700,000
Transporation 2,115,000 3,737,000 4,225,000 3,225,000 3,000,000 Airport 60,000 55,000 25,000 125,000 -
Water 9,361,798 9,234,667 25,798,738 4,264,979 13,969,428 Wastewater 2,810,448 19,232,234 1,530,881 629,326 8,073,465 Solid Waste / Landfill 3,738,803 6,010,000 450,000 825,387 910,930 Other 4,997,547 1,560,000 1,770,000 860,000 990,000
Total 28,234,031 46,366,419 35,069,619 10,864,692 28,778,823

1 Reso No. (CM)
C:\Program Files\eSCRIBE\TEMP\12273779843\12273779843,,,Ordinance - Council Compensation 2022.docx bvf 6/23/2022 12:27:45 PM
ORDINANCE NO. (CM)

AN UNCODIFIED ORDINANCE OF THE CITY OF WATSONVILLE

INCREASING THE COMPENSATION FOR EACH MEMBER OF THE

CITY COUNCIL, AND THE MAYOR, PER MONTH, AS PERMITTED BY CALIFORNIA GOVERNMENT CODE SECTION 36516
WHEREAS, on June 22, 2021, the City Council enacted Ordinance No. 1418-21 (CM), in which it increased City Council compensation. The increase comprised an increase in salary from $578.81 per month to $607.75, which included a $10 per month contribution by the City for the provision of a term life insurance policy for all Council Members and the Mayor; and
WHEREAS, Government Code Section 36516(a)(4) provides that a city council may enact or amend an ordinance increasing compensation provided that the increase shall not exceed an amount equal to five percent (5%) for each calendar year from the operative date of the last adjustment of the salary when the ordinance or amendment is enacted, and that no ordinance shall be enacted or amended to provide automatic future increases in salary; and
WHEREAS, Government Code Section 36516(d) provides that any amounts paid by a city for retirement, health and welfare, and federal social security benefits shall not be included for purposes of determining salary, provided that the same benefits are available and paid by the city for its employees; and
WHEREAS, all Council Members and the Mayor receive a life insurance benefit that is also provided to City employees. The City pays that benefit on behalf of the Council, at a cost of $10 per month. This amount is included in the salary paid to Council Members; and

2 Reso No. (CM)
C:\Program Files\eSCRIBE\TEMP\12273779843\12273779843,,,Ordinance - Council Compensation 2022.docx bvf 6/23/2022 12:27:45 PM
WHEREAS, pursuant to City of Watsonville Charter Section 502, the Mayor shall receive as compensation $100 per month in addition to her compensation as a member of the Council.

WHEREAS, it is deemed fair and equitable that this ordinance be enacted to implement the will of the electorate which delegated the right to approve such increase to the Council.

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

SECTION 1. ENACTMENT.

That the salaries of the Mayor and Council Members shall be increased by 5%, from $607.75 to $638.14 per month for each City Council Member, including the Mayor.

The Mayor shall receive an additional $100 for a total compensation amount of $738.14.

These compensation amounts include a $10 per month contribution by the City for a life insurance benefit. All increases shall be effective December 24, 2022.

SECTION 2. RECITALS.

The City Council finds and determines the foregoing recitals to be true and correct and hereby makes them a part of this Ordinance.

SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT.

The City Council finds that this Ordinance is exempt from the provisions of the California Environmental Quality Act (“CEQA”) pursuant to Section 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a “project,” as defined in Section 15378 of the CEQA Guidelines.

3 Reso No. (CM)
C:\Program Files\eSCRIBE\TEMP\12273779843\12273779843,,,Ordinance - Council Compensation 2022.docx bvf 6/23/2022 12:27:45 PM
SECTION 4. SEVERABILITY.

If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

SECTION 5. PUBLICATION.

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

SECTION 6. EFFECTIVE DATE.

This ordinance shall be in force and take effect thirty (30) days after its final adoption.
******************************

Ord No. 1419-21 (CM)
C:\Program Files\eSCRIBE\TEMP\12273745978\12273745978,,,Ordinance - Budget Retirement Levy 2022.docx ri 6/23/2022 12:27:45 PM
1 ORDINANCE NO. (CM)

AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE INSTRUCTING THE COUNTY OF SANTA CRUZ TO

LEVY AND COLLECT A PROPERTY TAX ON TAXABLE PROPERTY IN

THE CITY OF WATSONVILLE FOR THE FISCAL YEAR BEGINNING
JULY 1, 2022, FIXING THE RATE OF 0.077% THEREOF AND

ALLOCATING TAX REVENUES TO THE RETIREMENT FUND
WHEREAS, the limitation provided for in Proposition 13, codified at California State Constitution Article XIIIA, does not apply to indebtedness approved by the voters prior to July 1, 1978, the effective date of Article XIIIA; and
WHEREAS, the voters of the City of Watsonville approved the levy and collection of a tax sufficient to meet all obligations of the City to the State Employees Retirement System, or other system for the retirement of City employees, in 1960, prior to the effective date of Article XIIIA, when they approved and adopted the Charter of the City of Watsonville; and
WHEREAS, pursuant to Ordinance No. 437-78 (CM), as amended by Ordinance No. 670-85 (CM), the County of Santa Cruz is authorized to levy and collect ad valorem taxes on taxable property within the City of Watsonville; and WHEREAS, on November 7, 2006, at a Special Municipal Election, the voters of the City of Watsonville approved Section 1122(b)(3) of the Charter of the City of Watsonville establishing the tax rate for the above-described tax as not to exceed 7.7 cents on each One Hundred and no/100th ($100.00) Dollars of assessed valued.

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

SECTION 1. ENACTMENT.

The County of Santa Cruz is hereby instructed to levy upon the taxable property of

Ord No. 1419-21 (CM)
C:\Program Files\eSCRIBE\TEMP\12273745978\12273745978,,,Ordinance - Budget Retirement Levy 2022.docx ri 6/23/2022 12:27:45 PM
2 the City of Watsonville for fiscal year beginning July 1, 2022, a property tax which is hereby fixed at the rate of 0.077% (pursuant to Subsection 1122(b)(3) of the Charter of the City of Watsonville), designated and to be allocated and divided among the funds of the City, as described and attached hereto on Exhibit A, the Budget for Fiscal Year 2022-23, adopted by the City Council on June 28, 2022.

SECTION 2. RECITALS.

The City Council finds and determines the foregoing recitals to be true and correct and hereby makes them a part of this Ordinance.

SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT.

The City Council finds that this Ordinance is exempt from the provisions of the California Environmental Quality Act (“CEQA”) pursuant to Section 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a “project,” as defined in Section 15378 of the CEQA Guidelines.

SECTION 4. SEVERABILITY.

If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the

Ord No. 1419-21 (CM)
C:\Program Files\eSCRIBE\TEMP\12273745978\12273745978,,,Ordinance - Budget Retirement Levy 2022.docx ri 6/23/2022 12:27:45 PM
3 fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

SECTION 5. EFFECTIVE DATE.

This ordinance shall take effect immediately upon adoption in accordance with Section 608(c) of the Charter of the City of Watsonville.

SECTION 6. PUBLICATION.

The City Clerk is hereby directed to cause this ordinance to be published in one regular issue of the Watsonville Register-Pajaronian and/or Santa Cruz Sentinel in compliance with the provisions of the Charter of the City of Watsonville within fifteen (15) days after its adoption.
***********************************

Exhibit A: Budget Appropriations
NUMBER FISCAL YEAR 22/23
0150 58,444,737.87
0160 3,873,308.00
0202 4,623,883.00
0204 603,603.22
0205 1,707,124.00
0209 608,918.00
0210 527,740.00
0215 85,000.00
0221 748,681.33
0225 97,900.00
0245 60,000.00
0246 368,179.47
0250 3,905,926.00
0260 4,804,571.00
0262 4,521,136.66
0265 38,403.61
0281 1,229,443.00
0283 136,769.78
0285 2,500.00
0290 5,000.00
0291 126,400.00
0305 1,657,927.73
0306 1,793,764.00
0309 203,454.00
0310 7,216,268.86
0312 3,824,243.00
0344 2,197,985.00
0349 11,564.00
0354 160,337.69
0357 48,945.00
0510 814,198.00
0710 25,309,870.69
0720 33,640,316.31
0730 4,140,895.11
0740 17,554,201.96
0741 3,569,993.00
0760 3,411,647.12
0765 426,939.00
0780 4,676,079.00
0787 8,724,615.00
0789 79,956.00
0790 5,043,202.00
0825 11,500.00
211,037,127.41
Total Appropriations 211,037,127.41
City Of Watsonville 205,809,641.19
Housing Successor Agency of the Former Redevelopment Agency 603,603.22 Successor Agency of the Former Redevelopment Agency 4,623,883.00

NARCOTICS FORFEITURE AWARD

TOTAL APPROPRIATIONS

WORKERS COMP/ LIABILITY

HEALTH INSURANCE - NEW

FIBER OPTIC FUND

INFORMATION & TECHNOLOGY ISF

AIRPORT

SOLID WASTE

LANDFILL CLOSURE

MSC INTERNAL SERVICE FUND

COMPUTER REPLACEMENT

LLMAD (SPECIAL DISTRICTS FUND)

UNDERGROUND UTILITY

DEBT SERVICE FUND

WASTE WATER
WATER
IMPACT: PUBLIC FACILITIES
IMPACT: EAST HIGHWAY 1 AREA

MEASURE D -TRANSPORTATION FUND

GAS TAX
SB 1 - GAS TAX FUNDING

PARKING GARAGE

SALES TAX MEASURE Y

PARKS DEVELOPMENT

LLMAD - CITY PARKS

LLMAD-GONZALEZ STREET

GREEN BUILDING FEE

CANNABIS REVENUE FUND

LIBRARY

SPECIAL GRANTS

ARPA FUND-AMERICAN RELIEF PLAN

PUBLIC EDUCATION FEE -CABLE TV

RELOCATION REVOLVING

AFFORDABLE HOUSING

BUSINESS DEVELOPMENT

ABONDONED VEHICLE AUTHORITY

CIVIC CENTER COMMON AREA

COMMUNITY DEV BLOCK GRANT
H.O.M.E. GRANTS

CAL HOME GRANT

GENERAL FUND

RETIREMENT FUND
RDA_OBLIGATION RETIREMENT FUND
RDA_HOUSING

CITY OF WATSONVILLE & SUCCESSOR AGENCY

BUDGET APPROPRIATIONS BY FUND OF THE REDEVELOPMENT AGENCY OF THE CITY OF WATSONVILLE

BUDGET APPROPRIATIONS

BY FUND

DESCRIPTION

Reso No. (CM)
C:\Program Files\eSCRIBE\TEMP\12273894561\12273894561,,,Resolution - Budget Gann 2022-2023.docx ri 6/23/2022 12:27:44 PM SWZ ______ TV ______ Finance ______ 1 RESOLUTION NO. ________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE ESTABLISHING TOTAL ANNUAL APPROPRIATIONS

PURSUANT TO CALIFORNIA STATE CONSTITUTION ARTICLE XIII-B FOR THE FISCAL YEAR 2022-2023
[Proposition 4 Gann Spending Limit]
WHEREAS, the initiative commonly referred to as Proposition 4 Gann spending limit adopted November 6, 1979, by the state electorate provided for Article XIII-B of the State Constitution to establish government spending limitations, and requires the establishment of total annual appropriations subject to certain limitations and adjustments for change.

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

That the total annual appropriations limit (Proposition 4 Gann spending limit) for the City of Watsonville General Fund during the fiscal year 2022-2023 is $163,997,367; the amended budget subject to the spending limit is $36,903,487 as set forth in Exhibit “A,” a copy of which is attached hereto, and is hereby approved and adopted. ****************************

Exhibit A
Proposition 4 Calculation
For Fiscal Year 2022-23
Spending Limit Calculation
[a] 2021-22 Limit $ 152,484,767
Calculation of Growth Factor
Change in Population 7.550%
Non-resident, New Const. Assessment Growth -0.03
Change in California Per Capita Person Income
[b] Growth Factor (1.0755 *1) 1.07550000
[c] 2022-23 Limit ( [a] multiplied by [b] ) $ 163,997,367 2022-23 Gann Limit Proposed Spending
Proposed General Fund Spending $ 51,449,489
Less Non-tax General Fund Revenues:

Transfers In (non-tax) (151,968)
Use of Money and Property (2,761,507)
Fees (11,632,527)
In-lieu Charges -
Other non-tax revenue -
[d] Spending Subject to the Gann Limit $ 36,903,487
Remaining Capacity ( [d] subtracted from [c] ) $ 127,093,880

Reso No. (CM)
Reso No. (SHA)
Reso No. (SA)
C:\Program Files\eSCRIBE\TEMP\12273896134\12273896134,,,Resolution - Budget and CIP Final.docx ri 6/23/2022 12:28:00 PM AJS ______ MDH ______ Finance _____ 1 RESOLUTION NO. (CM)
RESOLUTION NO. (SHA)
RESOLUTION NO. (SA)

A JOINT RESOLUTION OF THE CITY COUNCIL AND THE CITY

COUNCIL IN ITS CAPACITY AS THE SUCCESSOR TO THE HOUSING

ASSETS AND FUNCTIONS OF THE FORMER REDEVELOPMENT

AGENCY OF THE CITY OF WATSONVILLE, AND THE SUCCESSOR

AGENCY OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY

OF WATSONVILLE ADOPTING THE FINAL BUDGET FOR FISCAL
YEAR 2022-2023, PROVIDING FOR CERTAIN TRANSFERS OF FUNDS,

AND APPROVING THE FIVE-YEAR CAPITAL IMPROVEMENT
PROGRAM (CIP) FOR FISCAL YEARS 2022-23 to 2026-27
WHEREAS, pursuant to § 1103 of the Charter of the City of Watsonville a proposed budget for fiscal year 2022-2023 has been submitted to the City Council by the City Manager and the City Council has reviewed and made revisions as it deemed advisable; and
WHEREAS, pursuant to Section 1104 of the Charter, the Council fixed the time and place for holding the public hearing on the proposed budget; and WHEREAS, copies of the proposed budget have been and are available for inspection by the public at the Office of the City Clerk at least ten (10) days before the hearing to consider final adoption; and
WHEREAS, pursuant to Section 1104 of the City Charter, a public hearing was held to consider the adoption of the proposed budget after due notice as provided by law at which time interested persons desiring to be heard were given such opportunity; and WHEREAS, after the conclusion of the public hearing the Council further considered the proposed budget and made any revisions thereto that it deemed advisable; and
WHEREAS, the appropriate officers, departments, boards, and commissions of the City identified all public improvements proposed in Watsonville; and

Reso No. (CM)
Reso No. (SHA)
Reso No. (SA)
C:\Program Files\eSCRIBE\TEMP\12273896134\12273896134,,,Resolution - Budget and CIP Final.docx ri 6/23/2022 12:28:00 PM
2 WHEREAS, on May 3, 2022, the Planning Commission reviewed said identified public improvements and listed and classified same with a coordinated program of proposed public improvements for the five-year Capital Improvement Program (CIP) according to a logical order or priority; and
WHEREAS, the Planning Commission recommended a coordinated program of proposed public improvements for the fiscal years 2022-2023 to 2026-2027 period to the City Manager and Council; and
WHEREAS, § 1105 of the Charter provides after submission of the proposed budget, but before the beginning of the ensuing fiscal year, the Council shall adopt a final budget with revisions, if any, and said final budget shall be certified by the City Clerk.

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

Section 1. Approval of 2022-2023 Budget. That the City of Watsonville and the City Council in its Capacity as the Housing Successor Agency to the Former Redevelopment Agency of the City of Watsonville proposed a budget for 2022-2023, presented by the City Manager to the members of the City Council, and filed with the City Clerk, and as thereafter amended by the City Council, a copy of which budget is on file in the Office of the City Clerk, is hereby approved as to form in the amount of $211 million for the fiscal year ending June 30, 2023.

Section 2. Approval of 2022-2023 Successor Agency Budget. That the Successor Agency for the Former Redevelopment Agency of the City of Watsonville proposed budget for 2022-2023, presented by the City Manager to the members of the Agency, and filed with the City Clerk, and as thereafter amended by the Agency Members,

Reso No. (CM)
Reso No. (SHA)
Reso No. (SA)
C:\Program Files\eSCRIBE\TEMP\12273896134\12273896134,,,Resolution - Budget and CIP Final.docx ri 6/23/2022 12:28:00 PM
3 a copy of which budget is on file in the Office of the City Clerk, is hereby approved as to form in the amount of $5.2 million for the fiscal year ending June 30, 2023.

Section 3. Adoption of 2022-2023 Budget. That the portion of the proposed budget applicable to the 2022-23 fiscal year presented by the City Manager to the members of the City Council, and filed with the City Clerk, and as thereafter amended by the City Council, a copy of which budget is on file in the Office of the City Clerk, is hereby approved as the final budget in the amount of $211 million for the fiscal year ending June 30, 2023, and the several amounts stated therein as proposed expenditures are hereby appropriated for the objects therein described on Exhibit “A,” attached hereto and incorporated herein.

Section 4. Appropriations. That from the effective date of the adopted budget, the amounts stated in said budget as proposed expenditures are hereby appropriated to the offices, agencies and departments for the respective objects specified in said adopted budget.

Section 5. Council Transfers. That the City Council is authorized pursuant to Section 1107 of the Charter of the City of Watsonville, after adoption of the budget, to amend or supplement the budget as to authorize the transfer of unused balances appropriated from one purpose to another purpose, or to appropriate available revenue not appropriated in the budget.

Section 6. Lapse of Appropriations. Pursuant to § 1107 of the Charter, all such appropriations shall lapse at the end of the 2022-2023 fiscal year except to the extent that they shall have been expended or lawfully encumbered.

Reso No. (CM)
Reso No. (SHA)
Reso No. (SA)
C:\Program Files\eSCRIBE\TEMP\12273896134\12273896134,,,Resolution - Budget and CIP Final.docx ri 6/23/2022 12:28:00 PM
4 Section 7. Manager Transfers. That the City Manager is authorized to transfer appropriations within fund budgets; provided, however, that the total appropriations are not increased thereby.

Section 8. Finance Transfers. That the Administrative Services Director is authorized to transfer appropriations among the items within departmental budgets, excepting there from Salary and Capital accounts.

Section 9. Capital Improvement Program. That the Capital Improvement Program for 2022-2027, attached as a part of the 2022-2023 budget, as amended by the City Council, is hereby approved. Capital projects carried over from prior periods (reappropriated), as amended by Council are hereby approved, except as already expended.

Section 11. Excess Expenditures. Pursuant to § 1107 of the Charter, except to the extent provided in this resolution, no officer, department or agency of the City shall, during any fiscal year, expend or incur any obligation to expend money for any purposes not authorized by or in excess of the amounts appropriated by this budget, as amended, for a given classification or expenditure. For purposes of expending or incurring such obligation, classification means the same as the term “fund” defined in the Budget.

Section 12. Public Copy Available. Pursuant to § 1105 of the Charter, a copy of the adopted budget, certified by the City Clerk shall be placed on file in the office of the City Clerk where it shall be available for public inspection. Certified copies shall be reproduced and copies made available for use by all officers, offices, departments and other agencies of the City and for use by civic organizations ************************************

Exhibit A: Budget Appropriations
NUMBER FISCAL YEAR 22/23
0150 58,444,737.87
0160 3,873,308.00
0202 4,623,883.00
0204 603,603.22
0205 1,707,124.00
0209 608,918.00
0210 527,740.00
0215 85,000.00
0221 748,681.33
0225 97,900.00
0245 60,000.00
0246 368,179.47
0250 3,905,926.00
0260 4,804,571.00
0262 4,521,136.66
0265 38,403.61
0281 1,229,443.00
0283 136,769.78
0285 2,500.00
0290 5,000.00
0291 126,400.00
0305 1,657,927.73
0306 1,793,764.00
0309 203,454.00
0310 7,216,268.86
0312 3,824,243.00
0344 2,197,985.00
0349 11,564.00
0354 160,337.69
0357 48,945.00
0510 814,198.00
0710 25,309,870.69
0720 33,640,316.31
0730 4,140,895.11
0740 17,554,201.96
0741 3,569,993.00
0760 3,411,647.12
0765 426,939.00
0780 4,676,079.00
0787 8,724,615.00
0789 79,956.00
0790 5,043,202.00
0825 11,500.00
211,037,127.41
Total Appropriations 211,037,127.41
City Of Watsonville 205,809,641.19
Housing Successor Agency of the Former Redevelopment Agency 603,603.22 Successor Agency of the Former Redevelopment Agency 4,623,883.00

NARCOTICS FORFEITURE AWARD

TOTAL APPROPRIATIONS

WORKERS COMP/ LIABILITY

HEALTH INSURANCE - NEW

FIBER OPTIC FUND

INFORMATION & TECHNOLOGY ISF

AIRPORT

SOLID WASTE

LANDFILL CLOSURE

MSC INTERNAL SERVICE FUND

COMPUTER REPLACEMENT

LLMAD (SPECIAL DISTRICTS FUND)

UNDERGROUND UTILITY

DEBT SERVICE FUND

WASTE WATER
WATER
IMPACT: PUBLIC FACILITIES
IMPACT: EAST HIGHWAY 1 AREA

MEASURE D -TRANSPORTATION FUND

GAS TAX
SB 1 - GAS TAX FUNDING

PARKING GARAGE

SALES TAX MEASURE Y

PARKS DEVELOPMENT

LLMAD - CITY PARKS

LLMAD-GONZALEZ STREET

GREEN BUILDING FEE

CANNABIS REVENUE FUND

LIBRARY

SPECIAL GRANTS

ARPA FUND-AMERICAN RELIEF PLAN

PUBLIC EDUCATION FEE -CABLE TV

RELOCATION REVOLVING

AFFORDABLE HOUSING

BUSINESS DEVELOPMENT

ABONDONED VEHICLE AUTHORITY

CIVIC CENTER COMMON AREA

COMMUNITY DEV BLOCK GRANT
H.O.M.E. GRANTS

CAL HOME GRANT

GENERAL FUND

RETIREMENT FUND
RDA_OBLIGATION RETIREMENT FUND
RDA_HOUSING

CITY OF WATSONVILLE & SUCCESSOR AGENCY

BUDGET APPROPRIATIONS BY FUND OF THE REDEVELOPMENT AGENCY OF THE CITY OF WATSONVILLE

BUDGET APPROPRIATIONS

BY FUND

DESCRIPTION

Reso No. (CM) Reso No. (RA)
C:\Program Files\eSCRIBE\TEMP\12274098287\12274098287,,,Resolution - Budget 2000 Redev Project Area (CM) (SHA).docx ri 6/23/2022 12:28:00 PM AJS ______ MDH ______ Finance ______ 1 RESOLUTION NO. __________ (CM)
RESOLUTION NO. __________ (SHA)

A JOINT RESOLUTION OF THE CITY COUNCIL AND CITY COUNCIL IN

ITS CAPACITY AS THE SUCCESSOR TO THE HOUSING ASSETS AND

FUNCTIONS OF THE FORMER REDEVELOPMENT AGENCY OF THE

CITY OF WATSONVILLE FINDING THAT THE USE OF THE FORMER
AGENCY’S FUNDS AND OTHER ASSETS GENERATED FROM THE
WATSONVILLE 2000 REDEVELOPMENT PROJECT AREA FOR THE

PURPOSE OF IMPROVING, INCREASING, AND PRESERVING THE
COMMUNITY’S SUPPLY OF LOW AND MODERATE INCOME HOUSING

OUTSIDE THE PROJECT AREA WILL BENEFIT THE PROJECT AREA
WHEREAS, in accord with the California Community Redevelopment Law (Health and Safety Code sections 33000, et seq.) (the “CRL”), the City Council of the City of Watsonville (“City”) previously established the Redevelopment Agency of the City of Watsonville (“Agency”); and
WHEREAS, in accord with CRL section 33334.2(a), not less than twenty percent (20%) of all tax increment that was allocated to the Agency from the Watsonville 2000 Redevelopment Project Area (“Project Area”) was placed into the Agency’s Low and Moderate Income Housing Fund (“LMIHF”) and used to increase, improve and preserve the community’s supply of low and moderate income housing; and WHEREAS, in accord with Assembly Bill 1X26 (“AB26”) and Assembly Bill 1484 (“AB1484”) (AB26 and AB1484, collectively, the “Dissolution Acts”), the Agency was dissolved and its assets, functions, and obligations were assumed by other public agencies; and
WHEREAS, in accord with CRL section 34176, the City of Watsonville (“City”) elected to become the Agency’s housing successor agency (“Housing Successor”) and to assume the Agency’s low and moderate income housing responsibilities, including those related to the LMIHF and the income attributable to the repayment of loans made

Reso No. (CM)
C:\Program Files\eSCRIBE\TEMP\12274098287\12274098287,,,Resolution - Budget 2000 Redev Project Area (CM) (SHA).docx ri 6/23/2022 12:28:00 PM
2 from the LMIHF and the sale of assets purchased with LMIHF funds (all of the foregoing, collectively, “Housing Assets”); and
WHEREAS, in accord with CRL section 34176(d), the Housing Successor has established in its accounts a separate “Low and Moderate Income Housing Asset Fund” (“LMIHAF”) and has placed all Housing Assets which it received from the Agency into the LMIHAF and will likewise place any future Housing Assets it receives into the LMIHAF; and
WHEREAS, under the Dissolution Acts, the Housing Successor’s use of the LMIHAF is subject to the CRL’s housing-related requirements; and WHEREAS, CRL section 33334.2(g) provides that funds in the LMIHF may be used outside the Project Area only if the Agency’s governing and legislative bodies determined that the proposed use would benefit the Project Area; and WHEREAS, as the Housing Successor’s legislative and governing body, the City Council may make the findings required by CRL section 33334.2(g) with respect to the use of funds in the LMIHAF outside of the Project Area; and WHEREAS, the General Plan of the City of Watsonville demonstrates a need for affordable housing throughout the community; and
WHEREAS, the Housing Successor proposes to use funds in the LMIHAF outside of the Project Area for various projects designed to increase, improve, and preserve the City’s supply of decent, safe, and sanitary affordable housing.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL AND THE CITY

COUNCIL IN ITS CAPACITY AS THE SUCCESSOR TO THE HOUSING ASSETS AND

Reso No. (CM)
C:\Program Files\eSCRIBE\TEMP\12274098287\12274098287,,,Resolution - Budget 2000 Redev Project Area (CM) (SHA).docx ri 6/23/2022 12:28:00 PM
3 FUNCTIONS OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF WATSONVILLE :

Section 1. Based on the written and oral information presented to it, the City Council determines as follows:

A. The use of LMIHAF funds for the development of low and moderate income housing outside of the Project Area will benefit the Project Area, since there is the need for additional affordable housing throughout the community, as indicated by the City of Watsonville General Plan, and since more land is needed to develop sufficient affordable housing in the community than is available within the Project Area.

B. The use of LMIHAF funds outside the Project Area is authorized.

The Housing Successor’s use of LMIHAF funds is subject to the same CRL requirements as the Agency’s use of LMIHF funds would have been.

Section 2. The findings and determinations set forth in this Resolution are final and conclusive.

Section 3. The City Clerk will certify the adoption of this Resolution and will cause it to be processed in the manner required by law. ***********************************

Reso No. (RA)
C:\Program Files\eSCRIBE\TEMP\12274030862\12274030862,,,Resolution - Budget Set Aside 2022.docx ri 6/23/2022 12:28:02 PM SWZ ______ TV ______ Finance ______ 1 RESOLUTION NO. __________ (SHA)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE IN ITS CAPACITY AS THE SUCCESSOR TO THE

HOUSING ASSETS AND FUNCTIONS OF THE FORMER

REDEVELOPMENT AGENCY OF THE CITY OF WATSONVILLE FINDING

THAT THE USE OF FUNDS FROM THE LOW AND MODERATE-INCOME

HOUSING ASSET FUND FOR PLANNING AND GENERAL

ADMINISTRATIVE COSTS IS NECESSARY FOR THE PURPOSE OF
PRODUCING, IMPROVING, AND PRESERVING THE COMMUNITY’S

SUPPLY OF LOW AND MODERATE-INCOME HOUSING
WHEREAS, in accord with the provisions of the California Community Redevelopment Law (Health and Safety Code Section 33000, et seq. (“CRL”), the City Council of the City of Watsonville (“City”) previously established the Redevelopment Agency of the City of Watsonville, a public body, corporate and politic (“Agency”) to carry out the purposes of and exercise the powers granted to community redevelopment agencies under the CRL; and
WHEREAS, on February 1, 2012, the Agency was dissolved pursuant to Assembly Bill 1X26 (Stats. 2011, 1st Ex. Sess., Ch. 5) (“AB 26”), and its rights, powers, duties and obligations were transferred to a “successor agency” (as defined by CRL Section 34171(j) and Section 34173); and
WHEREAS, CRL Section 34176 provides that the City, as the former Agency’s creating entity, could elect to retain the housing assets and functions of the former Agency and to assume its rights, powers, duties, obligations; and WHEREAS, in accord with Section 34176, the City elected to retain the former Agency’s housing assets and functions and to become the successor (“Housing Successor”) to the former Agency’s housing rights and duties; and

Reso No. (CM)
C:\Program Files\eSCRIBE\TEMP\12274030862\12274030862,,,Resolution - Budget Set Aside 2022.docx ri 6/23/2022 12:28:02 PM
2 WHEREAS, as the Housing Successor, the City holds the former Agency’s housing funds and assets; and
WHEREAS, as required by CRL section 34176(d), the City has created among the City’s accounts a “Low and Moderate Income Housing Asset Fund” (“LMIHAF”) and has deposited the former Agency’s housing funds (and income from the former Agency’s housing assets) into the LMIHAF; and
WHEREAS, CRL Section 34176 provides that the funds in the LMIHAF may be used only in accord with the CRL’s applicable housing-related provisions; and WHEREAS, the City, as Housing Successor, proposes to expend funds from the LMIHAF for the purposes allowed under the CRL’s housing-related provisions, including for planning and administrative expenses directly related to programs and activities authorized by CRL Section 33334.2(e) and Section 33334.3(e); and WHEREAS, in accordance with CRL Section 33334.3(d), the Housing Successor may expend money from the LMIHAF for planning and general administrative activities directly associated with the development, improvement and preservation of affordable housing which is not disproportionate to the amount actually spent for the costs of the production, improvement, or preservation of that housing; and WHEREAS, CRL Section 33334.3(d) requires that the Housing Successor determine annually that the planning and administrative expenses paid for with housing funds are necessary for the production, improvement, or preservation of low- and moderate-income housing.

Reso No. (CM)
C:\Program Files\eSCRIBE\TEMP\12274030862\12274030862,,,Resolution - Budget Set Aside 2022.docx ri 6/23/2022 12:28:02 PM
3 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY

OF WATSONVILLE IN ITS CAPACITY AS THE SUCCESSOR TO THE HOUSING

ASSETS AND FUNCTIONS OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF WATSONVILLE , CALIFORNIA, AS FOLLOWS:

Section 1. In accord with CRL Section 33334.3(d), the City Council determines that the Housing Successor’s use of funds from the LMIHAF to pay for planning and administrative expenses is necessary for the production, improvement, or preservation of low- and moderate-income housing.

Section 2. In accord with CRL Section 33334.3(e), the City Council authorizes the Housing Successor’s use of funds from the LMIHAF for planning and administrative costs directly related to programs and activities authorized by CRL Section 33334.2(e) and Section 33334.3(e).

Section 3. The findings and determinations set forth in this Resolution are final and conclusive.

Section 4. The City Clerk will certify the adoption of this Resolution and cause it to be processed in the manner required by law.
******************************

6/24/2022 9:46:23 PM
C:\Program Files\eSCRIBE\TEMP\21461660341\21461660341,,,Staff Report - PV Arts DDA.docx Agenda Report
MEETING DATE: Tuesday, June 28, 2022
TO: City Council
FROM: CITY MANAGER PRO TEMPORE VIDES
Raunel Zavala, Sr Administrative Analyst
SUBJECT: It is recommended that the City Council approve the disposition and development agreement between the City of Watsonville and Pajaro Valley Arts Council
STATEMENT OF ISSUES:

The City intends to sell the Porter building and has developed a disposition and development agreement with the buyer.

RECOMMENDED ACTION:

It is recommended that the City Council approve the disposition and development agreement between the City of Watsonville and Pajaro Valley Arts Council for the City owned property, the Porter Building, located on 280 Main Street in Watsonville, CA and authorize the City Manager to execute and enter into such DDA.

BACKGROUND:

On November 12, 2019, the City issued a Request for Proposals (RFP) seeking qualified parties interested in purchasing or leasing the historic Porter Building at 280 Main Street. The Porter Building is a City owned property acquired in 1966. It is a historic building located in the heart of Watsonville’s downtown commercial core area. The building was constructed just before the 1906 San Francisco Earthquake and was once occupied downstairs by Daly Bros.

Dry Goods with offices upstairs.

The City issued an RFP seeking proposals from qualified firms, supported by a professional architectural/engineering team with the objective of entering into an Exclusive Negotiating Agreement for the purchase or lease of this property. The development objectives outlined on the RFP include a mixed-use commercial project, i.e. retail or restaurant on the first floor and office or residential use on the second floor of the ~15,000 sq. ft. building. The structure is a historic building and any modifications to the building will be subject to historic preservation review. Along with the RFP, an appraisal of the Porter Building conducted by Pacific Appraisers in August 2018, in which they valued the property at $1,350,000, was included. The City was searching for a buyer who can activate the building and maximize the economic

6/24/2022 9:46:23 PM
C:\Program Files\eSCRIBE\TEMP\21461660341\21461660341,,,Staff Report - PV Arts DDA.docx activity at this important location in the downtown by bringing an entertainment and retail related user to the first floor.

Two proposals were received by the deadline of January 3, 2020. Staff reviewed both proposals, confirmed they were complete and met the outlined development objectives in the RFP. On March 13, 2020, the City and County declared an emergency due to the COVID-19 Pandemic and these efforts were put on pause for a few months.

On October 22, 2020 both applicants were invited to present their development proposal to the Council and the Public. The first proposal was from
Pajaro Valley Arts Council, a non-profit charitable corporation (PV Arts) established in 1984.

The articles of incorporation of PV Arts say its purpose is to sponsor and encourage artistic, cultural, historical, scientific and educational activities in North Monterey County and mid to South Santa Cruz County and their surrounding areas in the public interest.

The PV Arts proposal is to establish a gallery exhibit and retail space (approximately 1700 square feet) on the ground floor. The retail space will support local artists for cash and carry sales that will provide revenue for PV Arts and artists. The ground floor will also include a multipurpose room for performances, meetings, events, receptions, workshops, and additional special exhibits (approximately 1000+ square feet). Upstairs will be used as classroom space for seniors and youth (500-800 square feet) and artist studios (approximately 3000 square feet). The remainder of the space will be used for a warming kitchen, office space, storage, bathrooms, and hallways.

The Second Proposal was from WatsNews, LLC, a limited liability company (WatsNews) established on June 14, 2019. As of July 8, 2019, the sole officer is Manager Dan Pulcrano.

WatsNews is in the newspaper publishing business.

WatsNews proposed an investment in the building that was also consistent with the development objectives of this property and was innovative. The proposal included: a casual dining restaurant emphasizing locally sourced ingredients; a destination wine bar and food market highlighting Santa Cruz Mountains vineyards, Pajaro Valley farms and artisanal producers. The top floor would house a boutique micro-hotel and a creative space for community institutions as well as the Pajaronian newspaper business offices. This business proposal included the support of the Pajaronian newspaper’s media partners for marketing purposes.

After evaluating the proposals, the City began exploring due diligence and preliminary negotiations with PV Arts.

Following analysis of the 2019 changes in the State Surplus Land Act (Government Code Section 54220 et seq.) (“Surplus Land Act”), the City paused the RFP developer selection process and on March 23, 2021, by Resolution 78-21, in Compliance with the Surplus Land Act the City Council declared the Building Property to be surplus. The City issued a notice of availability and allowed 60 days for any eligible party to respond.

6/24/2022 9:46:23 PM
C:\Program Files\eSCRIBE\TEMP\21461660341\21461660341,,,Staff Report - PV Arts DDA.docx On September 29, 2021, the City of Watsonville and PV Arts entered into an Exclusive Right to Negotiate Agreement to negotiate the terms of a proposed agreement regarding PV Art’s purchase of the Porter Building from the City in order to rehabilitate and refurbish the Building to create a performing arts space and an art gallery exhibit space, coupled with ancillary uses on the ground floor and artist studio space and ancillary office space on the second story as fully explained in the PV Arts development proposal submitted to the City in response to the request for proposals.

DISCUSSION:

The City began negotiations with PV Arts soon after to determine the terms of the sale.

Negotiations continued up until April 2022 when the preliminary terms of the purchase were agreed upon by both parties. PV Arts followed up with Pacific Appraisers for an updated appraisal, which determined the current market value of the property to be $1,150,000. The City accepted the new appraised value. A closing date of no longer than July 29, 2022 was decided on. This is due to the fact that PV Arts was awarded a $540,000 grant funded by the Hewlett Foundation and administered by Community Vision Capital and Consulting (CV), for the acquisition of the Porter Building, with the requirement that funds are to be disbursed into escrow by July 31, 2022.

It is in the City’s best interest for the Porter building property to be developed into something that brings value to the City and that fits in with the City’s Downtown specific plan, as it was proposed on PV Art’s response to the City’s RFP. In order to ensure the best interest of the community, the City has placed conditions to ensure the proposed project is completed.

Those conditions are:
 A covenant on the grant deed, stating that until the 30th anniversary of the date of the Grant Deed the building property may only be used as a performing arts space and an art gallery exhibit space with ancillary uses on the ground floor and artist studio space and ancillary office space on the second floor, as more fully set forth in PV Art’s development proposal submitted to City in response to City’s request for proposals. If within those 30 years, PV Arts decides to sell the property, the City has the “Right of first offer.”
 PV Arts will use diligent, good faith efforts to commence and complete construction of the restoration project as soon as possible.
 Grant of an easement to City for utility access as well as for access to City’s employees, officials, contractors, representatives, guests and invitees with ingress and egress to and from Maple Ave. as noted on Attachments 2 and 3 of the grant deed. This will help support any future development on the remaining City parcel.

6/24/2022 9:46:23 PM
C:\Program Files\eSCRIBE\TEMP\21461660341\21461660341,,,Staff Report - PV Arts DDA.docx  Within 180 days following closing, PV Arts shall provide City evidence that it has selected a manager for its fundraising campaign for the renovation work and ongoing maintenance of the building property.
 PV Arts will also provide the City with quarterly progress reports regarding the funds raised by the Capital Campaign and construction progress with the first due not less than 30 days after the expiration of the first full calendar quarter following the Closing.

These will continue until the Capital Campaign is complete.

Summary of Terms:

Buyer: Pajaro Valley Arts Council, a California nonprofit public benefits corporation.

Purchase price: $1,150,000.00
Closing date: Closing shall occur on or before July 29, 2022.

Use of the building property: Property may only be used as a performing arts space and an art gallery space with ancillary used on the ground floor and artist studio space and ancillary office space of the second floor until the 30th anniversary of the date the grant deed is signed.

Right of first offer: The City reserves the right of first offer if at any time prior to the 30th anniversary of the signed grant deed, PV Arts wishes to sell the property.

Progress report: Quarterly progress reports will be provided to the City.

STRATEGIC PLAN:

This action is consistent with the City’s goal of strengthening the City’s economy by attracting new businesses and revitalizing our downtown while engaging residents to create a more vibrant, engaged and thriving city.

FINANCIAL IMPACT:

The City’s General Fund will receive the purchase price of $1,150,000(minus portion of closing costs paid by the City).

ALTERNATIVE ACTION:

The City Council may choose not to approve the Disposition and Development agreement with PV Arts.

ATTACHMENTS AND/OR REFERENCES (If any):

IRV #4864-4981-3541 v3
RESOLUTION NO.__________ (CM)

RESOLUTION APPROVING A DISPOSITION AND DEVELOPMENT

AGREEMENT BETWEEN THE CITY OF WATSONVILLE AND PAJARO

VALLEY ARTS COUNCIL, A CALIFORNIA NONPROFIT PUBLIC BENEFIT

CORPORATION, REGARDING THE PORTER BUILDING PROPERTY
COMPRISING AN APPROXIMATELY 15,000 SQUARE FOOT PORTION
OF ASSESSOR PARCEL NUMBER 017-182-16
WHEREAS, the City of Watsonville (“City”) is the fee owner of Assessor Parcel Number 017-182-16 (“City-Owned Parcel”); and
WHEREAS, the City issued a Request for Proposals (“RFP”) for development of an approximately 15,000 square foot portion of the City-Owned Parcel, which is improved with the historic Porter Building (“Building Property”); and WHEREAS, upon analysis of the 2019 changes in the State Surplus Land Act (Government Code Section 54220 et seq.) (“Surplus Land Act”), the City paused the RFP developer selection process and on March 23, 2021, by Resolution 78-21, the City Council declared the Building Property to be surplus; and WHEREAS, in compliance with the Surplus Land Act, City issued a notice of availability, and then briefly negotiated with the one affordable housing sponsor who considered submitting an offer to purchase the Building Property, but later rescinded its offer; and
WHEREAS, having received no other expressions of interest from affordable housing sponsors or other parties who received the notice of availability, City now desires to dispose of the Building Property to a buyer for use consistent with the objectives outlines in the RFP; and
WHEREAS, City staff have negotiated with Pajaro Valley Arts Council, a California nonprofit public benefit corporation (“PV Arts”) a proposed Disposition and

IRV #4864-4981-3541 v3
Development Agreement (“DDA”) with respect to the Building Property, which is attached to the staff report and incorporated by reference herein; and WHEREAS, the DDA provides, among other things, for City to sell the Building Property to PV Arts and, following close of escrow, for PV Arts to rehabilitate and refurbish the Porter Building to create a performing arts space and an art gallery exhibit space, coupled with ancillary uses on the ground floor and artist studio space and ancillary office space on the second story; and
WHEREAS, a fair market appraisal prepared for City determined that the fair market value of the Building Property is $1,150,000; and WHEREAS, City has negotiated a sale of the Building Property to PV Arts for a purchase price of $1,150,000; and
NOW, THEREFORE, BE IT RESOLVED, based on the information in the staff report accompanying this Resolution and all attachments thereto, which are incorporated herein by this reference, and all public testimony presented to the City Council regarding the City Owned Parcel and Building Property, the City Council of the City of Watsonville hereby finds and determines as follows:

1. The foregoing recitals are true and correct.

2. The approval and implementation of the DDA is categorically exempt from the requirements of CEQA because it falls within a class of projects that the Secretary of Resources has found does not have a significant effect on the environment pursuant to Section 15301 of the State CEQA Guidelines, 14 CCR 15000, et seq., entitled Existing Facilities.

IRV #4864-4981-3541 v3

3. The City Council hereby directs the City Manager to file a Notice of Exemption with respect to approval and implementation of the DDA.

4. The City Council hereby finds that the disposition of the Building Property as described in the DDA is consistent with the objectives, policies, general land uses, and programs specified in the City of Watsonville’s General Plan, for among other reasons the following: PV Arts will offer art classes and events for the entertainment of the public, such that the use of the Building Property will be quasipublic or recreational in nature.

5. The City hereby determines based on the evidence in the record that the proposed sale price of $1,150,000 represents the fair market value of the Property.

6. The City Council hereby approves and authorizes the City Manager or their designee, to execute and enter into the DDA in the form attached to the staff report, with such further minor conforming, technical or clarifying changes or revisions as may be agreed to and approved by the City Attorney, which do not materially increase the obligations of the City thereunder. The City Manager or their designee and the City Clerk are further authorized and directed to take such further actions and execute such documents on behalf of the City as are necessary to carry out the transaction contemplated by the DDA on behalf of the City, including without limitation, all actions and documents necessary for the sale of the Building Property to PV Arts pursuant to the DDA, including without limitation a) approving a legal description for the Building Property and inserting it in place of the site plan attached to the DDA as an exhibit to describe the Building Property and b) approving and attaching legal descriptions to the Grant Deed for the Building Property, the City’s

IRV #4864-4981-3541 v3
grants of easements to PV Arts over the City-Owned Parcel, and reservations of easements on the Building Property for the benefit of the City-Owned Parcel.

7. This resolution shall become effective immediately upon its passage and adoption.

6/23/2022 9:11:34 PM
C:\Program Files\eSCRIBE\TEMP\21113396401\21113396401,,,Report - Ordering Election for Sales Tax Measure .docx Agenda Report
MEETING DATE: Tuesday, June 28, 2022
TO: City Council
FROM: CITY MANAGER PRO TEMPORE VIDES
SUBJECT: ADOPT A RESOLUTION ORDERING A MUNICIPAL ELECTION ON NOVEMBER 8, 2022 ON WHETHER TO APPROVE A ONE-HALF OF

ONE CENT SALES TAX FOR GENERAL SERVICES
STATEMENT OF ISSUES:

Consider a resolution ordering an election and placing a one-half cent general transactions and use tax for consideration on the November 8, 2022 ballot.

RECOMMENDED ACTION:

Adopt a resolution:

1. Ordering a municipal election to be called on whether to approve a one-half of one percent sales tax for general services by adding a new Article 15 (Community Investment Transactions and Use Tax) of Chapter 6 (Taxation) of Title 3 (Finance) to the Watsonville Municipal Code; requesting Santa Cruz County Elections to conduct the election; requesting consolidation of the election to be held on November 8, 2022; and directing the City Clerk to take steps to place said measure on the ballot; and

2. Review proposed funding priorities for said tax measure Pursuant to Government Code Section 53724, placing this general tax measure on the ballot requires a 2/3 vote of the Council.

DISCUSSION:

BACKGROUND
As a first step towards ordering an election for approval of a one-half of one cent sales tax, on June 14, 2022, the Council approved proposed language for an ordinance adding a new Article 15 (Community Investment Transactions and Use Tax) of Chapter 6 (Taxation) of Title 3 (Finance) to the Watsonville Municipal Code, to be administered by the California Department of Tax and Fee Administration (CDTFA) and to be approved by voters. This measure would be a general tax measure, with revenues deposited into the City’s general fund.

If the Council wishes to proceed, it must now adopt a resolution ordering the election for November 2022, and submit the resolution to the Santa Cruz County Elections Department by August 12, 2022.

6/23/2022 9:11:34 PM
C:\Program Files\eSCRIBE\TEMP\21113396401\21113396401,,,Report - Ordering Election for Sales Tax Measure .docx Throughout the pandemic and in the recent couple of years, the City has conducted a series of community engagement efforts, budget workshops and community surveys. The City has received consistent feedback indicating the community’s desire to increase investment in parks and roads infrastructure, citing the need for positive spaces and programs for youth and children and the need for maintenance of parks, trails and sloughs.

It is well researched and documented that parks and recreation facilities and programs have profound positive impacts on a community’s health, well-being and quality of life. Close to home parks encourage active lifestyles and reduce health costs, increase community engagement and reduce crime, increase property values and make cities more climate resilient. Additionally, recreation programs play a key role in prevention and diversion as they provide young people with assets to become thriving adults, keep kids safe and away from crime, improve the health and well-being of youth and seniors and strengthen community unity.

The continued effect of COVID-19 on work environments, schools and daily life have encouraged community members to seek more time outdoors to get some fresh air, relieve stress, exercise and find a sense of normalcy. Throughout the pandemic, parks and public land have seen some of their highest usage in modern times, and Watsonville is no different.

Numerous scientific studies demonstrate that the availability of accessible, safe and quality parks and open space is crucial to personal and community well-being. This fact has been underscored by the pandemic, especially in disadvantaged communities and communities of color.

According to the Trust for Public Land, “Parks are proving to be an essential part of how we cope and recover from this crisis…As officials reimagine park policy in real time, equitable access is becoming a driving factor in decision-making…Decisions made in the next few months will determine whether the outdoors become more accessible and equitable and further benefit the health of communities, or slide backward…The pandemic highlights that in too many communities, access to the outdoors is considered a privilege when it should be a right.” Investment in our parks and open spaces is more crucial now than ever.

This community prioritization began to become apparent pre-pandemic, through polling of likely voters that was conducted in 2019 for the renewal of the Measure G Public Safety Sales Tax. Polling revealed that afterschool and youth violence prevention programs are a top community priority. Accordingly, the renewal measure (which became Measure Y), included an eight percent (8%) carve out for the Parks and Community Services Department, generating approximately $340,000 annually or 5% of the Department’s annual budget.

Following budget cuts implemented at the beginning of the pandemic in 2020, community members have repeatedly requested an increased investment in City services, such as parks and recreation, that affect the quality of life. As COVID restrictions began to lift and parks and recreation programs began to reopen, the Council restored many of these budget reductions.

In addition, the Council highlighted identifying sustainable funding for parks and recreation services in its 2021-2023 Strategic Plan, specifically by prioritizing the following goals:
 2- Fiscal Health – Sustainable Parks Funding
 3- Infrastructure and Environment – Parks and Road Infrastructure

6/23/2022 9:11:34 PM
C:\Program Files\eSCRIBE\TEMP\21113396401\21113396401,,,Report - Ordering Election for Sales Tax Measure .docx  5 - Community Engagement and Well-Being – Parks Accessibility, Services for Youth  6 - Public Safety – Youth Development
 7 - Efficient and High Performing Government – Financial Management Furthermore, the City’s Ad-Hoc Committee on Policing and Social Equity’s Final Report included a recommendation to “Develop and Increase Programs for Youth and Families.” This recommendation stated that “Prevention and early intervention programs are critical in creating better pathways for youth. Increasing the inventory of prevention and youth development programs will provide a greater range of support and opportunities for Watsonville youth and families in the Watsonville community.” This recommendation specifically outlined the following actions:
 Develop programs and services that keep youth from becoming police involved as well as stopping deeper involvement in the criminal justice system.  Prioritize funding for Parks & Recreation services, in order to create and sustain more programs for community youth that are not affiliated with the Police Department.  Expand youth prevention and intervention programs in the 2022-2023 budget that have demonstrated success.
 Consider the expansion of parks and recreation activities and service as a form of prevention and a support for families.
 Explore feasibility of a special sales tax measure for voters to consider on the November 2022 ballot that provides long term sustainable funding for Parks and Community Services Programs.
 Provide a fund that supports families in receiving low cost to free programming in the Parks and Recreation Department.
 Keep parks clean, well maintained and provide adequate lighting.  Create public spaces for youth to create art.

Additional funding is needed to help maintain after-school programs, anti-gang activities, and recreation programs that keep youth and teens off the streets, out of trouble and away from drugs and gangs as these places and programs have proven to be even more critical during hard times. Sustainable funding is also needed for other services that contribute to the quality of life. Further investment is needed in other priority areas that make Watsonville a great place to live, work and play, such as road safety and conditions, maintenance of community infrastructure and facilities and Library services.

In alignment with both the Council Strategic Plan and the Ad Hoc Committee’s recommendations, staff worked with Godbe Research to conduct a poll to test support of a half-cent sales tax for parks and recreation services. In February 2022, Godbe conducted a telephone and online poll of 486 likely voters for the November 2022 election. Staff and Godbe shared poll results with the Council at the meeting on April 26, 2022. This poll revealed that about 68% of voters would support such a measure.

A special tax, which would designate the specific uses for revenues, requires 2/3 approval by the voters. Godbe reported that, when adding arguments against the measure to the poll, approval dropped to 63%. Godbe noted that passing a general sales tax, which require 50%

6/23/2022 9:11:34 PM
C:\Program Files\eSCRIBE\TEMP\21113396401\21113396401,,,Report - Ordering Election for Sales Tax Measure .docx voter approval, had a higher chance for success and could also address the community’s priorities of funding for roads and libraries, as identified in the poll.

Funding Priorities
The poll also tested support for various elements of a measure and features that voters would likely support. Over 20 features were tested, including creating safe places for kids, maintaining streets, improving parks and playgrounds, affordable housing, homeless and mental health services and senior and library programs. Of these features, the following ranked the highest in terms of likely voter support:
 Fix potholes and maintain streets
 Keep Watsonville Slough trails area safe and clean
 Create safe places for kids to play
 Maintain after-school and summer programs serving at-risk youth and teens to keep them safe and out of trouble
 Repair, maintain and improve aging parks, fields, playgrounds and trails  Support senior meal programs at various locations throughout Watsonville Based on this poll and previously collected community input data, staff estimates that revenue from this tax measure could be allocated in the following manner:

Priority Annual Estimated Budget
Streets, roads and park renovations $2,500,000
Youth and teen afterschool, summer and prevention
programs; programs for families and seniors
$1,450,000
Playground and trail maintenance $700,000
Library programs and services $350,000
If the tax measure is approved by voters, the Council would adopt a budget to allocate funds to these priorities. As this is a general tax measure that will be enacted with a simple majority of the votes, all revenues will be deposited in the City’s general fund. However, the Council may commit to use those funds in a way that is consistent with the feedback it receives from the community. Staff recommends that the Council adopt a resolution identifying these tested features as priority for funding should the proposed tax measure be approved by voters.

PROPOSED ORDINANCE
The proposed ordinance implements a new general half-cent sales tax that creates sustainable funding for parks, recreation and other quality of life services, facilities and programs. Specifics of the measure include:
 Would not affect essential purchases, such as groceries and medicine.  A sales tax would be paid both by residents and visitors who work or shop in Watsonville.
 Would provide locally controlled revenue to keep neighborhoods, parks and recreational facilities clean, safe and well maintained, provide youth and senior programming and other essential city services.
 Funds could not be taken by the State or County and all local sales tax dollars would stay in Watsonville.

6/23/2022 9:11:34 PM
C:\Program Files\eSCRIBE\TEMP\21113396401\21113396401,,,Report - Ordering Election for Sales Tax Measure .docx  The measure would require fiscal accountability protections, including independent citizen oversight, mandatory financial audits, and yearly reports to the community.  Requires periodic assessment of community needs.
 Would last until repealed by voters.

STRATEGIC PLAN:
 2- Fiscal Health – Sustainable Parks Funding, Capital Planning  3- Infrastructure and Environment – Parks and Road Infrastructure  5 - Community Engagement and Well-Being – Parks Accessibility, Partnerships & Health, Services for Youth
 6 - Public Safety – Youth Development
 7 - Efficient and High Performing Government – Financial Management FINANCIAL IMPACT:

The proposed half-cent transactions and use tax measure would generate approximately $4- $5 million annually to assist the City with funding parks and recreation services, quality of life services and other general government use.

The County of Santa Cruz Elections Department estimates the cost between $2.50 - $4.00 per voter. The City of Watsonville currently has 22,055 registered voters. Therefore, the cost could range from $55,137.50 to $88,220.

ALTERNATIVE ACTION:

The Council could elect to not order the election, or could direct staff to make changes to the ordinance. The deadline for the Council adopts a resolution placing the measure on the ballot is August 12.

ATTACHMENTS AND/OR REFERENCES (If any):

None.

REVISED
Ord No. (CM) 1
Meeting Date: 062822
RESOLUTION NO. (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE ORDERING AN ELECTION ON NOVEMBER 8, 2022 TO

SUBMIT TO THE VOTERS AN ORDINANCE TO ESTABLISH A

COMMUNITY INVESTMENT TRANSACTIONS AND USE TAX (SALES
TAX) AT THE RATE OF ONE HALF PERCENT (0.5%) FOR GENERAL MUNICIPAL PURPOSES UNTIL ENDED BY VOTERS; REQUESTING

THE BOARD OF SUPERVISORS OF THE COUNTY OF SANTA CRUZ

TO CONSOLIDATE THE ELECTION REGARDING THE ORDINANCE
WITH THE NOVEMBER 8, 2022 STATEWIDE GENERAL ELECTION

AND TO PERMIT THE SANTA CRUZ COUNTY ELECTIONS
DEPARTMENT TO CONDUCT SAID ELECTION; DIRECTING THE CITY

CLERK TO TAKE ALL NECESSARY ACTIONS AND COORDINATE

WITH THE COUNTY OF SANTA CRUZ TO ENSURE PLACEMENT OF
THE ORDINANCE ON THE NOVEMBER 8, 2022 BALLOT;

AUTHORIZING THE CITY MANAGER TO REIMBURSE THE COUNTY
OF SANTA CRUZ FOR THE COSTS TO CONDUCT THE ELECTION;

AUTHORIZING THE CITY COUNCIL TO AUTHOR THE ARGUMENT IN
FAVOR AND ANY REBUTTAL ARGUMENT; AND DIRECTING THE CITY

ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS
WHEREAS, the City of Watsonville (“City”) conducted community engagement efforts, budget workshops, and community to understand the interests and needs of the Watsonville community since and through the COVID-19 pandemic began; and WHEREAS, these community engagement efforts have revealed a strong desire for investment in City services that affect quality of life, including sustainable and adequate funding for the City’s parks and open spaces; and WHEREAS, the Watsonville community has also voiced interest in city-funded activities and programs for youth and seniors; and
WHEREAS, the City’s ad-hoc Committee on Policing and Social Equity recommended development of programs for youth and families by taking actions such as prioritizing funding for Parks and Recreation services, expanding such services and activities, and creating public spaces for youth to create art; and WHEREAS, the City Council has identified sustainable funding for parks and recreation services in its 2021-2023 Strategic Plan, specifically prioritizing goals such as parks and road infrastructure, parks accessibility, services for youth, youth development, and financial management of efficient and high performing government; and WHEREAS, the City Council identified several other community priorities in need of additional funding including repairing roads and potholes, maintaining library hours and

REVISED
Ord No. (CM) 2
Meeting Date: 062822
services, addressing homelessness and mental health issues in the community. And creating jobs and supporting local business; and
WHEREAS, the City of Watsonville’s capacity to provide services and address community needs is contingent on the City’s economic resources and its ability to control costs; and
WHEREAS, the proposed measure will increase the City’s capacity to provide and maintain these services; and
WHEREAS, the proposed measure ensures fiscal accountability by requiring annual financial audits, independent citizen oversight, and ensures that all funds remain in within the City of Watsonville to ensure funds will be used as efficiently and effectively; and
WHEREAS, additional locally controlled funding will address community identified City service priorities including providing and maintaining parks and open spaces, youth and senior programing, and ensuring the City’s long-term financial stability; and WHEREAS, the measure proposed by the City Council of the City of Watsonville would amend the City’s Municipal Code to adopt a Community Investment Transactions and Use (Sales) Tax, creating a new general tax amounting to a one-half of one (0.50%) percent sales tax; and
WHEREAS, the City Council has the authority under Elections Code Section 9222, Revenue and Taxation Code Section 7285.9, and Government Code Sections 53723 and 53724 to place a ballot measure before the voters to establish a local transaction and use tax (sales tax) for general municipal purposes; and
WHEREAS, pursuant to Government Code Section 53724(b), this general tax measure requires approval of 2/3 of the City Council and a simple majority of the voters; and
WHEREAS, pursuant to Revenue and Taxation Code Sections 7251.1, the combined rate of all transaction and use taxes imposed by the City and County is capped at 2%, there is remaining capacity within the local transactions and use tax cap of onehalf percent (0.5%), and the City is authorized to impose the tax contingent on voter approval; and
WHEREAS, the City seeks to adopt a local transactions and use tax rate of onehalf percent (0.5%) in order to generate additional revenue that may be used to mitigate spending reductions that will need to be implemented as part of the budget, to provide and maintain parks and open spaces, and to assist with long-term financial stability; and WHEREAS, Article XIII C, Section 2(b) of the California Constitution requires that an election to approve a general tax measure be consolidated with a City Council election and such an election has been declared for November 8, 2022; and

REVISED
Ord No. (CM) 3
Meeting Date: 062822
WHEREAS, the County of Santa Cruz will be conducting a statewide general election in Watsonville on November 8, 2022; and
WHEREAS, it is in the best interest of the City of Watsonville to consolidate the City election with the County election to be conducted on November 8, 2022; and WHEREAS, pursuant to Elections Code Section 10002, the governing body of any city may by resolution request the Board of Supervisors of the county to permit the county elections official to render specified services to the city relating to the conduct of an election, subject to the city reimbursing the county in full for the services performed upon presentation of a bill to the city; and
WHEREAS, pursuant to Elections Code Section 10400, whenever two or more elections, including bond elections, of any legislative or congressional district, public district, city, county, or other political subdivision are called to be held on the same day, in the same territory, or in territory that is in part the same, they may be consolidated upon the order of the governing body or bodies or officer or officers calling the elections; and WHEREAS, pursuant to Elections Code Section 10403, whenever an election called by a city for the submission of any question, proposition, or office to be filled is to be consolidated with a statewide election, and the question, proposition, or office to be filled is to appear upon the same ballot as that provided for that statewide election, the city shall, at least 88 days prior to the date of the election, file with the board of supervisors, and a copy with the elections official, a resolution of its governing board requesting the consolidation, and setting forth the exact form of any question, proposition, or office to be voted upon at the election, as it is to appear on the ballot. Upon such request, the Board of Supervisors may order the consolidation. The resolution requesting the consolidation shall be adopted and filed at the same time as the adoption of the ordinance, resolution, or order calling the election; and WHEREAS, the City Council hereby requests the County Clerk of Santa Cruz County provide election services that are normally provided to the City of Watsonville.

NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF WATSONVILLE DOES HEREBY DETERMINE AS FOLLOWS:

SECTION 1. Pursuant to California Constitution Article XIIIC, Section 2(b), Government Code Sections 53723 and 53724, Revenue and Taxation Code Section 7285.9, and Elections Code Section 9222, the City Council hereby calls for an election at which it shall submit to the qualified voters of the City a measure, that if approved by the majority of voters voting in the election, would adopt and impose a transactions and use (sales) tax of 0.5% until said tax is repealed by a vote of the electorate of the City, and upon such event shall then be terminated. The election shall be held in the City on November 8, 2022.

SECTION 2. The City Council hereby approves the Community Investment Sales Tax authorizing the levying of a local transactions and use tax for general purposes as set forth in Exhibit A attached hereto and its submittal to the qualified voters of the City during the November 8, 2022 election in accordance with Government Code Sections

REVISED
Ord No. (CM) 4
Meeting Date: 062822
53723, 53724(b) and Revenue and Taxation Code Section 7285.9 The Community Investment Sales Tax specifies that (i) the rate of the sales tax shall be one half percent (0.5%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City, (ii) the rate of the sales tax shall be one half percent (0.5%) of the sales price of tangible personal property stored, used, or otherwise consumed in the City, (iii) that the tax shall be in effect until said tax is repealed by a vote of the electorate of the City, and upon such event shall then be terminated, and (iv) that upon the Operative Date of the Ordinance, the California Department of Tax and Fee Administration shall collect the tax from retailers that are subject to the tax and remit the funds to the City.

SECTION 3. The City Council of the City of Watsonville acknowledges that the consolidated election shall be held and conducted in the manner prescribed in Elections Code Section 10418.

SECTION 4. Pursuant to Elections Code Sections 10400 and 10403, the City Council hereby orders an election be called and consolidated with any and all elections also called to be held on November 8, 2022 within the same territory. Further, pursuant to Elections Code Section 10002, the City Council hereby requests the Board of Supervisors of the County of Santa Cruz to consolidate the election regarding Community Investment Sales Tax with the November 8, 2022 General Election and to permit the Santa Cruz County Elections Department to provide any and all services necessary for conducting an election regarding the Community Investment Sales Tax. The County of Santa Cruz and its staff are authorized and instructed to procure and furnish any and all official ballots, notices, printed matter and all supplies and equipment and other necessary items in order to properly and lawfully conduct the election; the County of Santa Cruz is authorized to canvass the returns of the election, which shall be held in all respects as if there were only one election, and only one form of ballot shall be used; and the City Council recognizes that additional cost will be incurred by the County of Santa Cruz by reason of the consolidation of the election regarding the Community Investment Sales Tax with the Statewide election and agrees to reimburse the County of Santa Cruz for any costs that are not reimbursed by the State, and the City Council hereby authorizes the City Manager to pay the County of Santa Cruz for said services in full.

SECTION 5. The City Council hereby orders the City Clerk and the Santa Cruz County Department of Elections to desigante the measure by letter and submit the following question to the electorate at the November 8, 2022 election:

Community Investment Tax. To provide locally-controlled funding for Watsonville’s essential general services, including: after-school and anti-gang programs that keep kids safe; creating safe places to play; keeping parks/ Watsonville Slough trails safe and clean; repairing, expanding, improving parks/playgrounds; fixing potholes; maintaining streets; creating jobs; supporting local businesses, libraries, senior meal programs and general government use; shall the City of Watsonville measure be adopted levying one-half cent sales tax, until ended by voters, providing $5 million dollars annually, with community oversight?
Yes ______ No _______

REVISED
Ord No. (CM) 5
Meeting Date: 062822
SECTION 6. The City Council hereby orders that the Santa Cruz County Department of Elections print the full text of the Community Investment Sales Tax attached hereto as Exhibit A exactly as filed or indicated on the filed document in the voter information guide for the November 8, 2022 election.

SECTION 7. The City Council hereby finds and determines that the transactions and use tax imposed pursuant to the proposed Community Investment Sales Tax is for general municipal purposes and accordingly the tax shall be approved upon a majority vote of the qualified voters of the City of Watsonville voting in the election on the Community Investment Sales Tax.

SECTION 8. The City Council hereby directs the City Clerk to (i) publish a notice of elections and synopsis of the measure as required by Elections Code Section 12111; (ii) file certified copies of this resolution, including Exhibit A, with the County of Santa Cruz and take other necessary actions to ensure the placement of the Community Investment Sales Tax on the November 8, 2022 ballot; and (iii) coordinate with the County of Santa Cruz and take all necessary actions to oversee and certify the November 8, 2022 election process as required by the Elections Code.

SECTION 9. In accordance with California Elections Code Section 9280 and City of Watsonville Municipal Code Section 1-5.01, the City Council directs the City Clerk to transmit a copy of the Community Investment Sales Tax to the City Attorney, who shall prepare an impartial analysis showing the effect on the existing law and the operation of the measure.

SECTION 10. Pursuant to City of Watsonville Municipal Code Section 1-5.01, the City Council directs the Administrative Services Director to prepare an impartial fiscal analysis for the Community Investment Sales Tax.

SECTION 11. In accordance with California Elections Code Section 9282, arguments in favor and against the Community Investment Sales Tax, not exceeding 300 words, shall be filed with the City Clerk no later than 5:00 p.m. on August 19, 2022, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument.

SECTION 12. In accordance with Elections Code Section 9282, the City Council authorizes a subcommittee of two Council Members, appointed by the City Council during an open and public meeting, to prepare a written argument, not to exceed 300 words, in favor of the Community Investment Sales Tax on behalf of the City Council.

The remaining Council Members may review and sign onto the argument in advance of its publication, but may not circulate comments to other Council Members, as limited by the Brown Act. If an argument is filed against the Cannabis Business Tax Measure, the Council authorizes the same subcommittee or a different subcommittee, also appointed by the City Council during an open and public meeting, to prepare a written rebuttal, not to exceed 250 words, which also may be signed by members of the City Council.

REVISED
Ord No. (CM) 6
Meeting Date: 062822
SECTION 13. California Elections Code Section 9285 authorizes the City Council to adopt provisions for the filing of rebuttal arguments at municipal elections; accordingly, when the City Clerk has selected the argument for and against the Community Investment Sales Tax which will be printed and distributed to the voters, the City Clerk shall send a copy of the argument in favor of each of the to the authors of the argument against, and a copy of the argument against to the authors of the argument in favor of the Community Investment Sales Tax immediately upon receiving the arguments. The authors may prepare and submit rebuttal arguments not exceeding 250 words or may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument. The rebuttal arguments shall be filed no later than 5:00 p.m. on August 26, 2022, accompanied by the printed names and signatures of the persons submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers. Rebuttal arguments shall be printed in the same manner as the direct arguments, and rebuttal argument shall immediately follow the direct argument which it seeks to rebut.

SECTION 14. All previous resolutions providing for the filing of rebuttal arguments for City measures are hereby repealed and the provisions of this resolution providing for the filing of rebuttal arguments regarding the Community Investment Sales Tax shall only apply to the election to be held on November 8, 2022, and shall thereafter be repealed.

SECTION 15. In accordance with California Elections Code section 9280, the City Council directs the City Clerk to transmit a copy of the Community Investment Sales Tax to the City Attorney, who shall prepare an impartial analysis showing the effect of each measure on the existing law and the operation; the City Attorney’s impartial analysis may not exceed 500 words per measure and shall be filed with the City Clerk no later than 5:00 p.m. on Friday, August 19, 2022.

SECTION 16. The notice of the time and place of holding the election is given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election, in time, form and manner as required by law.

SECTION 17. For purposes of the California Environmental Quality Act (Public Resources Code Section 21000, et seq.), a “project” is defined in State CEQA Guidelines Section 15378 (a) as “the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment,” but excludes “the submittal of proposals to a vote of the people of . . . a particular community that that not involve a public agency sponsored initiative.” (14 CCR 1378(b)(3); Stein v. City of Santa Monica (1980) 110 Cal. App. 3d 458; Friends of Sierra Madre v. City of Sierra Madre (2011) 25 Cal. 4th 165.) The City Council hereby finds that, as a citizen-sponsored initiative, this Initiative is exempt from CEQA under CEQA Guidelines Section 15378(b)(3).

SECTION 18. In all particulars not recited in this resolution, the election shall be held and conducted as provided by the City of Watsonville Charter and other law for holding municipal elections.

SECTION 19. This Resolution shall take effect upon its adoption by at least twothirds of the City Council.

REVISED
Ord No. (CM) 7
Meeting Date: 062822
Exhibit A
ORDINANCE NO. (CM)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE ADDING A NEW ARTICLE 15 (TRANSACTIONS AND
USE TAX: COMMUNITY INVESTMENT TRANSACTIONS AND USE TAX
MEASURE) OF CHAPTER 6 (TAXATION) OF TITLE 3 (FINANCE) OF

THE WATSONVILLE MUNICIPAL CODE TO BE ADMINISTERED BY

THE CALIFORNIA STATE BOARD OF EQUALIZATION AND TO BE

APPROVED BY VOTERS
WHEREAS, the impact of COVID-19 on the local economy and City revenues, combined with escalating operating costs, constrains the City’s ability to maintain the quality of services provided and address its capital needs; and WHEREAS, without additional revenues, the City will be compelled to make spending reductions to programs and services that may jeopardize the public health, safety and general welfare of residents and visitors as well as curtail funding for maintenance, construction and other improvements to City facilities, infrastructure and the natural environment; and
WHEREAS, increased tax revenues would provide a secure, local revenue stream that would enable to the City to invest in repair and expansion of aging parks, playgrounds and trails; creating safe places for kids; maintaining after-school and gang prevention programs; fixing potholes and maintaining streets; expanding library access and services for seniors; and creating employment opportunities; and WHEREAS, all funds from a local revenue measure must stay in the City of Watsonville and cannot be taken by the State; and
WHEREAS, the City Council has determined that fiscal necessity requires the placement before the voters at the November 8, 2022 general election of a measure for

REVISED
Ord No. (CM) 8
Meeting Date: 062822
a transactions and use (sales) tax at the rate of one-half percent (0.5%) on the sale of tangible personal property and the storage, use, or other consumption of such property until repealed by the voters; and
WHEREAS, the transactions and use tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular actions or purposes, and any specific purposes recited in the ballot measure are non-exclusive examples only. This tax is a general tax and shall be approved if the measure receives at least a simple majority of affirmative votes.

Table of Contents
SECTION 1. FINDINGS. ................................................................................................. 9 SECTION 2. ENACTMENT. ............................................................................................ 9 ARTICLE 15 ................................................................................................................ 9 COMMUNITY INVESTMENT TRANSACTIONS AND USE TAX................................. 9 Sec. 3-6.1501 Title. .............................................................................................. 9 Sec. 3-6.1502 Program Priorities.......................................................................... 9 Sec. 3-6.1503 Operative date............................................................................. 11 Sec. 3-6.1504 Purpose....................................................................................... 11 Sec. 3-6.1505 Contract with State...................................................................... 12 Sec. 3-6.1506 Transactions tax rate................................................................... 12 Sec. 3-6.1507 Place of sale................................................................................ 12 Sec. 3-6.1508 Use tax rate................................................................................. 13 Sec. 3-6.1509 Adoption of provisions of State law. ............................................ 13 Sec. 3-6.1510 Limitations on adoption of State law and collection of use taxes. 13 Sec. 3-6.1511 Permit not required...................................................................... 15 Sec. 3-6.1512 Exemptions and exclusions......................................................... 15 Sec. 3-6.1513 Amendments. .............................................................................. 19 Sec. 3-6.1514 Enjoining collection forbidden...................................................... 20 Sec. 3-6.1515 Annual Audit and Public Report. ................................................. 20 Sec. 3-6.1516 Termination date. ........................................................................ 20 SECTION 3. CEQA FINDINGS. .................................................................................... 21 SECTION 4. PUBLICATION. ........................................................................................ 21 SECTION 5. SEVERABILITY........................................................................................ 22 SECTION 6. EFFECTIVE DATE. .................................................................................. 22 o-0-o