Vol 66 Min-CC081622 Special
MINUTES SPECIAL CITY COUNCIL MEETING
August 16, 2022 City of Watsonville
City Council Chambers
5:34 p.m.
1. ROLL CALL
Mayor Parker, Mayor Pro Tempore Montesino and Council Members Dutra, Estrada, García, Hurst, and Quiroz-Carter (arrived at 4:42) were present.
Staff members present were City Manager Mendez, City Attorney Zutler, City Clerk Ortiz, Assistant City Manager Vides, Police Chief Zamora, Administrative Services Director Czerwin, Community Development Director Merriam, Innovation and Technology Director Gill, Deputy City Manager Manning, and Deputy City Clerk Pacheco.
1.a. MOTION TO EXCUSE ABSENT COUNCIL MEMBERS (None)
2. NEW BUSINESS
At staff’s recommendation, Mayor Parker moved Item 2.b before Item 2.a.
2.b. SHORT-TERM LOAN AGREEMENT BETWEEN THE CITY OF WATSONVILLE & THE
COUNTY OF SANTA CRUZ FOR THE PURPOSE OF FUNDING THE PURCHASE OF
WATSONVILLE COMMUNITY HOSPITAL
1) Staff Report by Assistant City Manager Vides and Pájaro Valley Health Care District Project (PVHCDP) Board Member Inda
2) City Council Clarifying & Technical Questions
In answering Member García, Assistant City Manager Vides stated funds allocated from the City’s General Fund for the Ramsay Park Renaissance Project, which was not ready to begin construction yet, would be used for the short-term loan.
City Manager Mendez, in answering Member García, spoke about staff’s process to identify funding sources for the short-term loan.
In answering Mayor Parker, County Administrative Officer Palacios stated the $25 million grant for purchase of Watsonville Community Hospital (WCH) was approved by the State but due to a clerical error, the funds would not be received in time for the close of sale date. He spoke about alternate avenues that ensured the City would be paid back in the event the State decided not to award the grant.
County Administrative Officer Palacios, in answering Mayor Parker, spoke about allocation and reimbursement challenges with County of Santa Cruz’s General Fund and reasons the County did not loan the money for funding WCH’s purchase.
City Attorney Zutler, in answering Mayor Parker, spoke about provisions in the loan agreement that required payment within 60 days of the County of Santa Cruz receiving the funds.
In answering Member García, PVHCDP Board Member Inda spoke about the amount, DocuSign Envelope ID: F9092CDF-FEF8-4CCE-81C9-B71A90F1CA96 Vol 66 Min-CC081622 Special
guidelines, and payback terms for a potential loan from a partner organization that would be separate from those requested due to the clerical error made by the State.
PVHCDP Board Member Inda, in answering Member Hurst, spoke about exploring ways of improving services, continuing partnerships with other local health care providers, and attract a higher number of patients to WCH in order to support continued operation costs. 3) Public Input
Daniel Dodge Sr., District 5, thanked everyone who made donations towards purchase of WCH and asked Council to support the staff recommendation. He spoke about the history of Community Health Trust of Pájaro Valley and expressed concerns with the amount of funding they had contributed to PVHCDP for WCH’s purchase. 4) MOTION: It was moved by Mayor Pro Tempore Montesino, seconded by Member Hurst to approve the resolution listed below.
5) City Council Deliberation on Motion
Member Hurst spoke in support of the loan and about the importance of WCH for the community.
In answering Mayor Parker, County Administrative Officer Palacios spoke about Pájaro Valley Health Care District’s boundaries.
MOTION: The above motion carried by the following vote.
AYES: MEMBERS: Dutra, Estrada, García, Hurst, Montesino, Quiroz-Carter, Parker NOES: MEMBERS: None
ABSENT: MEMBERS: None
6) RESOLUTION NO. 159-22 (CM)
A RESOLUTION APPROVING SHORT-TERM LOAN AGREEMENT WITH THE
COUNTY OF SANTA CRUZ FOR THE PURPOSE OF FUNDING THE PURCHASE OF
WATSONVILLE COMMUNITY HOSPITAL
2.a. APPROPRIATION OF REVENUE FROM THE SALE OF THE PORTER BUILDING TO FUND THE CITY’S 2050 GENERAL PLAN UPDATE & AUTHORIZE APPROPRIATIONS & PAYMENT OF A CONTRIBUTION TO THE PAJARO VALLEY HEALTH CARE
DISTRICT PROJECT TO PURCHASE THE HOSPITAL
1) Staff Report by Assistant City Manager Vides and Pájaro Valley Health Care District Project Board Member Inda
2) City Council Clarifying & Technical Questions
In answering Member Dutra, PVHCDP Board Member Inda stated the City of Capitola, the City of Santa Cruz and Scotts Valley had not made donations to help purchase WCH.
Assistant City Manager Vides, in answering Member Dutra, spoke about the importance of the 2050 General Plan for mapping out the City’s growth and development, and about the possibility of exploring other funding sources for it.
Mayor Pro Tempore Montesino stated his concerns with appropriating funding from the sale of the Porter Building towards preparation of the 2050 General Plan.
DocuSign Envelope ID: F9092CDF-FEF8-4CCE-81C9-B71A90F1CA96 Vol 66 Min-CC081622 Special
In answering Member García, Assistant City Manager Vides stated American Rescue Plan Act funding had been allocated in its entirety.
Member García encouraged her fellow Council Members to reach out to Council Members of neighboring cities that had not yet donated to PVHCDP towards purchase of WCH.
Member Hurst spoke in support of asking cities in the area to consider donating money to help purchase WCH and about the importance of investing in the 2050 General Plan.
City Manager Mendez spoke about funds needed to prepare the 2050 General Plan, requested additional time to present Council with the actual costs it would entail, and stated they could explore alternate uses for funds from sale of the Porter Building. 3) Public Input – None
4) 1
st MOTION: It was moved by Member Hurst, seconded by Member Dutra to authorize the appropriation and payment of a $270,000 contribution to the Pájaro Valley Health Care District Project to purchase the Watsonville Community Hospital and $77,630.50 for costs associated with the sale of the Porter Building. 5) City Council Deliberation on Motion
In answering Member Dutra, Administrative Services Director Czerwin spoke about the need for having necessary funds allocated towards preparation of the 2050 General Plan and stated they would earn interest in the period before being utilized.
In answering Mayor Pro Tempore Montesino, Administrative Services Director Czerwin spoke about challenges in identifying funding sources for the preparation of the 2050 General Plan and stated such funding could be reallocated should alternate ways of paying for the Plan be found.
City Manager Mendez requested additional time to explore potential funding sources for the 2050 General Plan.
Mayor Pro Tempore Montesino stated he would like to increase the funds appropriated from the Porter Building sale for contribution to PVCHDP’s purchase of WCH.
Mayor Parker expressed concerns with allocating additional funding to help with WCH’s purchase.
Member García stated she resigned to Community Health Trust of Pájaro Valley’s Board of Directors and spoke about the Health Trust’s challenges with obtaining and allocating funds.
Member Dutra spoke about the possibility of exploring additional funding sources for the 2050 General Plan and prioritizing its preparation.
MOTION TO AMEND 1st MOTION: It was moved by Mayor Pro Tempore Montesino, seconded by Member García to amend the previous motion to authorize an increased appropriation and payment of a $370,000 contribution to the Pájaro Valley Health Care District Project to purchase the Watsonville Community Hospital and $77,630.50 for costs associated with the sale of the Porter Building.
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Member Hurst expressed concerns with increasing appropriation of funds from sale the Porter Building sale towards purchasing WCH.
In answering Member Dutra, City Manager Mendez spoke about potential impacts of appropriating additional funding to help with purchase of WCH.
Administrative Services Director Czerwin spoke about options Council would have to explore funding sources for the 2050 General Plan’s preparation if they did not authorize appropriations from the Porter Building sale.
In answering Member García, City Manager Mendez stated Council could allocate additional funds towards PVHCDP’s purchase of WCH in the future.
MOTION TO AMEND 1ST MOTION: The above amended motion failed by the following vote.
AYES: MEMBERS: Montesino
NOES: MEMBERS: Dutra, Estrada, García, Hurst, Quiroz-Carter, Parker ABSENT: MEMBERS: None
1 st MOTION: The first motion by Member Hurst, seconded by Member Dutra carried by the following vote.
AYES: MEMBERS: Dutra, Estrada, García, Hurst Montesino, Quiroz-Carter, Parker NOES: MEMBERS: None
ABSENT: MEMBERS: None
6) RESOLUTION NO. 160-22 (CM)
A RESOLUTION AUTHORIZING A BUDGET APPROPRIATION OF $347,630.50 IN
REVENUE FROM SALE OF THE PORTER BUILDING & AUTHORIZING
APPROPRIATIONS & PAYMENT OF A $270,000 CONTRIBUTION TO THE PÁJARO
VALLEY HEALTH DISTRICT PROJECT TO PURCHASE THE WATSONVILLE COMMUNITY HOSPITAL & $77,630.50 FOR COSTS ASSOCIATED WITH THE SALE
OF THE PROPERTY
3. EMERGENCY ITEMS ADDED TO AGENDA – None
4. REQUESTS & SCHEDULING FUTURE AGENDA ITEMS – None
5. ADJOURNMENT
The meeting adjourned at 7:02 p.m.
__________________________ __
Ari Parker, Mayor
ATTEST:
_____________________ _________
Irwin I. Ortiz, City Clerk
DocuSign Envelope ID: F9092CDF-FEF8-4CCE-81C9-B71A90F1CA96